BUREAU OF GEOLOGY treated for disposal. Excess water is recycled to the fermenter (U.S. Department of Energy, 1979). Industrial Chemicals Peat has been utilized as a raw material for the production of industrial chemicals for many years in Europe and the Soviet Union. U.S. interest has developed only recently. Peat bitumens, carbohydrates and humic acids are extracted by processes at low to moderate temperatures. Peat coke, peat tar and activated charcoal are produced by pyrolysis. The use of peat for industrial chemicals does not pose major technical problems. The technology has been developed in Europe and the Soviet Union. The chemicals produced are similar to petroleum derived products. As petro- leum becomes more expensive, the incentives to utilize peat will increase (Minnesota DNR, 1981). BITUMENS Peat bitumens are those peat components which are soluble in nonpo- lar organic solvents. The yield of bitumens depends on the extracting solvent chosen. Yield increases from low to high in the following list of solvents: petroleum ether, gasoline, dichloroethane, benzene, ethanol:benzene (1:1) (Fuchsman, 1978). Although various solvents are utilized for analytical purposes, gasoline is the solvent used in commer- cial processes. Benzene is not used because of health hazards (Bel'Kevich, 1977 in Fuchsman, 1978). The peat bitumens of commer- cial interest are peat waxes and resins. The waxes are the most impor- tant commercially (Fuchsman, 1978). Peat, suitable for commercial wax production, contains at least five percent gasoline extractable material and has an ash content less than 10 percent (Lishtvan and Korol, 1975, in Fuchsman, 1978). The wax content of peat is higher in more highly decomposed peats (Naucke, 1966, in Fuchsman, 1978) particularly those with remains of shrubs and trees (Fuchsman, 1978). Dried peat particles in the size range of 0.02 inches-0.2 inches are required for efficient solvent extraction. Wax extraction utilizes gasoline as the solvent and extracts most of the wax but relatively few of the resins (Bel'Kevich, 1977, in Fuchsman, 1978). Gasoline and peat are mixed at 20:1. Approximately five percent of the gasoline is lost in the process, with the rest being recycled after wax removal by solvent evap- oration. The crude wax contains some resins. Resins are partially removed by treatment with an appropriate solvent (cold acetone, alcohol and ethyl acetate) (Fuchsman, 1978). Further purification is accomplished by treatment with potassium dichromate and sulfuric acid at 1670F-2300F. The result is a fairly hard, light tan wax (Bel'Kevich, 1977, in Fuchsman, 1978).