Search Documents

By Asheim, Harald A.

Parameter estimates affect both the optimum field development decisions and the economic result. A general methodology for assessment of the effects of parameter uncertainty in offshore development decision situations is proposed, and used to analyze aspects of the initial development situation for the Statfjord field.

Jan 1, 1982

By K. S. Benson

DEPLETION is a subject of vital importance to the mining industry. Yet, in spite of its importance, its significance is not generally understood. The purpose of this discussion is to clarify the main aspects of the subject from the viewpoint of a metal mine taxpayer.

Jan 7, 1951

By Wayne A. Greenwalt

A method that determines venture participation when the decision maker's level of risk aversion varies according to venture profitability and risk investment is presented. The decision maker's fundamental aversion to risk is established by the selection of a desired working interest for a venture that anticipates only a discounted payout.

Jan 1, 1982

By Thomas R. Stauffer

The principle that conventional schemes for taxing petroleum or mineral resources are "inefficient" is illustrated using simulation calculations tested against an "ideal" system. Inefficiency is defined as the relative success in maximizing expected government revenues from the resources. Most systems fail because: 1) they leave oil in limbo, i.e. unproduced because of excessive fiscal burden; or 2) they unnecessarily increase the variance in the explorationist'c, rate of return by undertaxing large fields and overtaxing smaller but infra-marginal fields. This increases his discount rate and reduces taxable surplus. An "ideal" tax system is specified which maximizes government revenues while minimizing risk to the operator. Two criteria are developed: 1) the tax falls to zero on fields which yield only the minimum necessary rate of return ("marginal" fields); and 2) the after-tax present value of all fields is the same for all fields above a threshhold size. In particular, marginal fields, while contrib- uting little to expected values, do contribute to reducing variance and hence risk praemia by distributing the exploration costs over a higher probability of successful outcomes.

Jan 1, 1982

By Simon D. Strauss

What are future prospects for U.S. mining? In many quarters the assumption is made that this country has passed its zenith as a mineral producer -- that it is in a period of decline and that it is becoming a have-not nation like Japan and much of Western Europe. These industrial rivals of ours must depend almost entirely on others for their mineral supplies. In trying to answer this question one must of course distinguish between resources and productive capacity. In today's volatile and competitive markets, the definition of what are reserves and what are merely identified resources becomes ever more difficult. Many large deposits have been found that are unlikely to be viable in the marketplace under normal conditions but that can be of significance to the nation's military and industrial security in times of emergency. I should like to draw on personal experience from World War I1 for illustration. 4fter Pearl Harbor great concern developed over the availability of a long 1ist of strategic materials for which this country was largely dependent on imports. Included were a number of minerals of which domestic deposits had been identified. Among these were chromite, manganese ore, mercury, mica and tungsten.

Jan 1, 1982

By Duane N. Goens, Clifford R. Porter

A 91 kg/h (200 lb per hr) pilot plant was constructed according to "Magnex" design. A non-compliance eastern coal which would generate more than 0.85 kg of S02 per GJ (2.0 lb of SO2 per million Btu.) upon burning was brought into compliance less than 0.52 kg of SO2 per GJ (1.2 lb SO2 per million Btu) during continuous operation of the pilot plant. Approximately 85% of the pyritic sulfur was removed while recovering 90% of the Btu of the feed coal. Pilot plant operation is summarized and preliminary economics presented. Present status of the Magnex design program is reviewed.

Jan 2, 1979

By Duane N. Goens, Clifford R. Porter

A 91 kg/h (200 lb per hr) pilot plant was constructed according to "Magnex" design. A non-compliance eastern coal which would generate more than 0.85 kg of SO2 per GJ (2.0 lb of SO2 per million Btu) upon burning was brought into compliance less than 0.52 kg of SO2 per GJ (1.2 lb SO2 per million Btu) during continuous operation of the pilot plant. Approximately 85% of the pyritic sulfur was removed while recovering 90% of the Btu of the feed coal. Pilot plant operation is summarized and preliminary economics presented. Present status of the Magnex design program is reviewed.

Jan 1, 1980

By Charles W. Bloomquist

The profitability of miscible flooding in a hypothetical target oilfield is examined. The major costs, including Windfall Prof it Tax, are identified and their re1ative importance are discussed. The sensitivity of profit to important physical and economic variables is evaluated and discussed, including variance in oil recovery, oil price, injectant requirements, injectant cost, and capital requirements. Economic sensitivities to important development and operating decisions such as timing, Spacing, Slug size, and gas recycling are also analyzed. The Windfall Profit Tax (WPT) as it applies to gas miscible EOR projects is reviewed. The effect of WPT on each of the various project cases is analyzed and the effect of reduced WPT on remaining production from existing operations is evaluated. Tax implications are compared for integrated vs. "independent" controlled projects and the alternative of expensing vs. capitalizing tertiary injectants is also evaluated. The impact of the Net Income Limitation in reducing WPT. during early and late project life is determined and discussed.

Jan 1, 1982

By Thomas Henderson

Strategically, intermaterials competition is important to companies involved in raw materials extraction, smelting, refining or other processing, semi-finished and finished goods fabrication, and end-use consumers. In other words, just about every company involved in manufacturing. The array of materials covered by other papers in this session is testimony to the subject's breadth. In trying to provide an over- view of such a broad topic, the purpose has been to relate some of the common characteristics of the markets, economics and technology of raw materials, and to describe some of the ways in which Intermaterials competition impacts the markets, economics and technology of raw materials.

Jan 1, 1982

By William Ward

ONE often reads of the rich placer gravels in many of the canoe-traveled rivers of South America. The apparent richness of these gold-bearing gravels impresses the traveler, and in fact he may see batea after batea showing enough colors to figure over a dollar per cubic yard. These workings are called "playas" from the Spanish word playa, meaning shore or beach. Many workings have been reported in tropical rivers, but to my knowledge no dredge has made a success in such deposits. Investigation generally shows that the area of richness is limited and especially that the depth of the rich concentration is hardly ever more than a few inches. The Cauca river in Colombia, South America, is noted for its many rich playas.. This river rises near Popayan in the southern part of Colombia, flows north through a narrow valley between parallel mountain ranges and empties into the Magdalena river near Maganque. The airline distance between source and mouth of this river is only about 500 miles. The rainfall is large and the lower Cauca appears to be about the size of the Missouri river in the United States. From its mouth up to Valdivia, in the State of Antioqua, it is navigable. Above Valdivia is a. narrow gorge, above which the river is again navigable for some distance. The part of the Cauca where the playa panning is most noticeable is from Valdivia down to Where the Nechi river enters the Cauca, a distance along the river of about 100 miles. The current in this part is swift, so that the stern-wheel river steamers make the trip with some difficulty. In the course of my work in this section of Colombia I have had the opportunity to make a study of several of these playa workings and will give in detail the conditions observed.

Jan 7, 1914

By E. D. Hummer

During the planning of the fine coal cleaning addition at the Gary, W. Va., Coal Preparation Plant of United States Steel Corp. careful consideration was directed toward the problem of minus 48 mesh refuse disposal. The plant flow sheet included wet screening the raw coal at ¼ in., pumping the minus ¼ in. raw coal to bowl desiltors for desliming, and then cleaning the deslimed raw coal on tables. The material to be removed from the circuit as minus 48 mesh refuse consisted of the minus 100 mesh desiltor overflow thickened in two 120 ft diam thickeners and minus 1 mm screened from the table refuse. Later a flotation plant was added to recover coal from the desiltor overflow, and a classifier replaced the screens to make a sharper size separation of the table refuse at 48 mesh. Today the minus 48 mesh refuse at Gary consists of thickened flotation tailing and thickened spiral classifier overflow. The transportation of large quantities of fine, wet refuse filter cake mixed with jig and table refuse over existing conveying equipment would have been neither dependable nor economical. Filtration was therefore impractical, and disposal of the fine materials was a problem. The decision was to pump the material to storage ponds.

Jan 3, 1965

By Larry Dale

An approach for predicting the development of mineral resources on public lands has been developed as an aid to resource agencies. It consists of new techniques for evaluating the economic potential of the resource, the uncertainty about mine cost estimates, and the uncertainty about the occurrance of mineral deposits. New mineral sup- plies from inferred and hypothetical resources can be predicted by using these techniques. A case study illustrates their application in predicting development of copper resources in western Montana.

Jan 1, 1982

By Forest Mintz

Many oil and gas producers find it advantageous to borrow against the value of their hydrocarbon re- serves. This paper considers the requirements for a reserve based loan and the calculations that a bank would perform to arrive at a loan amount. Three of the most common loan structures, i.e. a term loan, a production payment, and a revolving credit/term loan will be discussed. A typical outline for each type of loan is presented. Finally, a comparison of major considerations in the three financing techniques is shown.

Jan 1, 1982

By Norman C. Stines

Russia's mineral potential is a secret that has been effectively kept by the Iron Curtain. There is no conclusive data and because of its extreme importance to the Free World, the subject is greatly discussed. Opinions range from those presented by Paul Tyler in his article "Russia's Mineral Potential," June issue of MINING ENGINEERING to those of Norman C. Stines, presented herewith. Mr. Stines is a consulting mining engineer of Los Gatos, Calif. He was in Russia, China, and Manchuria from 1909 to 1918 as a mining executive. From 1917 to 1919 he served as assistant military attache Intelligence Branch U. S. Army in Petrograd, Russia.

Jan 11, 1951

By Helmut Thielsch

METALLOGRAPHIC specimens whose surfaces are to be investigated are too thick to allow either light or electrons to pass through them for microexamination by transmission. This difficulty is overcome with optical microscopes by illuminating the surface through the objective lens. For electron microscopes best results are obtained by preparing thin replicas of the surface of the specimen, placing them in the microscope and passing the electron beam through them. Since electron microscopes represent a rather recent invention, they have found little application as compared with optical microscopes. This is true because, aside from the cost of new equipment and development of new techniques, some of the older replica methods necessitated the destruction of the surface from which a thin transparent replica was obtained. In other processes in which the surface is preserved, either too tedious a procedure is required, unsuited to "mass-production " requirements of industrial laboratories, or replicas of insufficient contrast and sharpness are produced. In general, investigations with the electron microscope involve five steps: (I) polishing the surface of the metal specimen, (2) proper etching of the surface, (3) preparing the suitable replica from the surface, (4) examination and photography in electron microscope and (5) interpretation. PREPARATION OF METAL SURFACES Usual metallographic polishing is generally satisfactory. It is important though that the final polish be applied very care- fully, since otherwise evidence of a small amount of deformation might show up even on relatively deeply etched surfaces. A high-power microscope should be used to determine the suitability of the polish and etch. This, of course, is not different from optical examinations, but in these, if a deep etch is used, the problem is less serious. It is frequently difficult to detect with optical microscopes poor polishing aside from superficial scratches before etching. Figs. I and 2 show micrographs of "well" and "poorly" polished nickel etched by immersing the same for 20 min. in a solution containing 8 grams cupricsulphate in 40 C.C. of concentrated HCl and 40 C.C. of H20 (Marble's reagent). The sample shown in Fig. I was polished in its final stages for 5 min. on a carborundum wheel followed by 10 min. on a rouge wheel, whereas the sample shown in Fig. 2 was polished only I min. on the rouge wheel. Generally, this procedure does not guarantee that the surface of the specimen will be either undistorted or deformed. It was applied here merely to show the effects of good and poor polishing. To the experienced investigator, plastic deformation is

Jan 1, 1946

By Rollin Farmin

"SWELLING GROUND" delivers pressure on mine timbers that originates in expansion of the wall rock, whereas "heavy ground" delivers only gravitative pressure. Of the several possible causes considered, the swelling is attributed to the physical surface action of water on gouge and flaky rocks at the periphery of the mine opening.

Jan 1, 1944

By Charles W. Perry

The options of enhanced oil recovery, coal syncrude, and shale syncrude are compared by approximately equivalent economics. The physical constraints for the major enhanced oil recovery processes are described, followed by new estimates of cost. The range for all three options in terms of light syncrude equivalent are $22 to $40 per barrel in 1980 dollars.

Jan 1, 1982

By Randall L. Neal

This paper discusses the impact of taxes at the state and federal level on typical on-shore oil and gas exploration economics in the USA. Taxes considered are the windfall profits excise tax, state production (or severance) taxes, state income tax, and federal income tax. Also considered will be market prices for oil and gas in the USA. The effect of government take as a percent of revenue, on rate of return, discounted Payout, and discounted cumulative cash flow is shown on the attached tables. The conclusion drawn is that tax laws, while rarely the most important factor to be considered when drilling a well, can have significant impact on the profitability of oil and gas ventures, and should be considered when determining where to drill. Hypothetical exploration wells were analyzed for the impact of tax laws on project profitability. The results of this study show that when factors other than taxes are postulated to be the same (such as producing rate, capital, operating costs, and prices), cash flow can vary by as much as 68% due to the differences in the tax laws. Other significant findings for the cases studied include: (a) that discounted payout varied by as much as 1.8 years, (b) that rate of return differed by up to 67% and (c) the total tax rate as a percentage of revenue had a maximum variance of 33%.

Jan 1, 1982

By V. D. Perry

Mineralized breccia pipes, because of their wide-spread occurrence and close structural relations to some of the world's great ore bodies, are objects of unusual interest for mining engineers and geologists. The literature contains many references to them, but it is questionable whether their genetic significance and economic importance have been sufficiently emphasized. The purpose here is to stress these features, relating them to the field facts, for the particular benefit of younger generations of geologists who, confronted with and sometimes confused by the growing flood of geochemical, geophysical, and other specialized research approaches, may be reassured that mappable field relations remain a foremost guide to a better understanding of ore deposits. A mineralized breccia pipe is a pre-mineral, breccia structure which has controlled the circulation and deposition of subsequently introduced mineralization. It is composed of relatively rotated angular or rounded rock fragments, set in a mineralized matrix. A pipe in plan outline may be circular, oval or approach polygonal form, with a steep to vertical axis proportionately much greater than its horizontal dimensions. The pipe is a steeply plunging, chimney-like mass of brecciated rock cemented with later minerals.

Jan 4, 1961

By Michael S. Koleda

Less than two years ago, the, Congress, with broad bipartisan support, passed the Energy Security Act of 1980. A decade marked by ten- fold increases in world oil prices and two major interruptions in oil flows from the Middle East had ended. An all-out national commitment to transform America's vast tar sands, oil shale and coal resources into conventional fuels had begun. The national synfuels effort was to be public-private cooperation at a scale unmatched in peace time. Private industry would own and operate the synthetic fuels facilities. Government would reduce market uncertainties to acceptable levels. The potential government commitment was substantial. Up to $88 billion would be available through the Synthetic Fuels Corporation, principally in the form of contingent financing. Billions more would be spent through Department of Energy programs. Additional incentives for alternate energy development were contained in the Energy Tax Act of 1978. The Energy Security Act clearly specified national synthetic fuels production objectives: 500,000 barrels per day by 1987 -- 2 million barrels per day by 1992. Finally, said Congress, Uncle Sam was going to do something about rapidly rising oil prices, uncertainties of energy supply, and the resulting disruption to the U. S. economy. Simply put, the purpose of the Energy Security Act of 1980 was to provide government guarantees sufficient to get synthetic fuels projects off the private sector drawing boards and into commercial production. Because of their huge cost, technological uncertainty, and lengthy pay-out period, these projects were always second place to projects of smaller size, known technology and more rapid pay-out. The Energy Security Act was the legal expression of public policy to bring the free-market synfuels timetable into line with the faster paced political timetable in the interest of national energy security.

Jan 1, 1982