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By Harry E. Krumlauf

The year 1957 was one of declining metal price and production. Many lead-zinc-copper mines were forced to close, and the remaining mines limited production to stay more in line with demand. High cost of labor, supplies, and equipment and high taxes aggravated the situation. Some operators postponed or abandoned expansion programs because of uncertain economic conditions. Output was curtailed by elimination of over- time employment and reduction of the working force. The number of employes laid off was small- reduction in the labor force was accomplished by not replacing those who left a company's employ.

Jan 2, 1958

By J. M. W. Mackenzie

The rheological properties of aqueous solutions of several commercial flocculants were investigated using a rotating coaxial cylinder viscometer. Similarities between the pH-apparent viscosity relationship and the flocculating properties of the reagents are discussed here. Synthetic neutral polymers and polyelectrolytes are used extensively as flocculants in mining and chemical engineering operations. The action of these reagents has been interpreted as adsorption of the polymer flocculant to the mineral surface, followed by the formation of physical polymer bridges between the particles.4,5 A consequence of the bridging model is that the efficiency of a polymer flocculant depends on the degree with which the polymer is adsorbed to the mineral surface, and the extent to which the polymer molecule forms a bridge between colliding particles. The length of the polymer molecule and its orientation at the mineral surface are important in the bridging mechanism since the further the polymer segments can protrude from the mineral surface the greater the probability may be of these segments contacting another mineral particle. Linke and Booth7 have shown that, for a silica suspension, both the settling rate at a given polymer addition and the maximum settling rate obtainable increase with increasing molecular weight. The analysis of silberbergl0 has

Jan 1, 1964

By Frank F. Aplan

INTRODUCTION Coal is a solid, combustible mineral substance resulting from the degradation and alteration of vegetable matter largely in the absence of air. In this natural process of coalification, some non-combustible mineral matter is always associated with the combustible material. Coal preparation or cleaning is the process of removing this inert mineral matter from the coal. Preparation is highly successful in removing the large fragments of inert material, but is not very effective in removing the fine inorganic mineral matter intimately associated with the coal. Of the 600 million tons of coal produced in the United States every year, approximately one-half is produced by coal cleaning methods (1). The bulk of this tonnage is cleaned by coarse or intermediate gravity preparation methods (5 inches to 28 mesh, Tyler). Fine cleaning, say, -28 mesh, is done by shaking tables, washing cyclones, and flotation, or, until recently, the fines were either incorporated into the clean coal or simply discarded--not infrequently, the latter. In 1972, only 13 million tons of raw coal were cleaned by flotation in the United States, and from this 8.4 million tons of clean coal were produced (1). The percentage of clean coal produced by flotation in Europe (England, West Germany, Poland, U.S.S.R., etc.) is substantially higher. However, coal flotation has grown rapidly in the United States from only a few plants in 1950 to 31 in 1960 (2) and 66 in 1970 (1). Virtually all new preparation plants incorporate flotation into their basic flowsheet. The essential difference between ore and coal flotation is that for ores the entire tonnage is ground to flotation size, whereas for coal

Jan 1, 1976

By A. D. Hughes

A relatively small area in Malaya, about 200 miles long by 40 miles wide, is the most important source of tin in the world. Some tin is recovered in other parts of the peninsula. Of the tin mined, 98 pct is recovered from alluvial deposits. From 1935 to 1941 the average annual world production of tin was 190,000 tons. The average annual production from Malaya during the same period was 62,000 tons or about one third of the total. Other producing countries, in order of importance, were the Netherlands East Indies 34,000 tons, Bolivia 30,000, Belgian Congo, Nigeria, Siam, Burma, China, and a few others with smaller amounts. The serious shortage of tin during the war period was due to the fact that the Japanese were occupying Malaya, Netherlands East Indies, Siam, Burma, and China which, together, formerly were producing 65 pct of the world supply. Because of the importance of tin in the world economy, and because of the fact that little is generally known in this country regarding the methods of recovering the tin in Malaya, it is believed that a short description of the industry, as carried on there, may be of interest to many of the readers. In addition you may be interested in the effect of the Japanese occupation, subsequent recovery of the properties and conditions existing at that time. The Malay Peninsula lies at the southeast tip of Asia. Singapore, a British colony, is situated on a small island at the southern end of the peninsula. It is a city of nearly a million population, an important world port, the site of a large British naval base and of one of the tin smelters. The Federation of Malaya consists of nine states, plus Penang, Malacca, and other small areas formerly part of the Straits Settlements, and it now covers the entire peninsula. The civil administration is controlled by the British. A constitution was adopted recently after reaching agreement with the Malay Sultans of the various states, who retain control of religious matters. The Capital is at Kuala Lumpur, a city of about 200,000 population, 250 miles north of Singapore and about half way to Penang. The country covers an area of 51,000 square miles, an area about equal to that of Florida and about one third that of California. It has a population of about seven million consisting of Malays, Chinese, East Indians, and a relatively small number of Europeans. The principal products are tin and rubber. There are over three million acres of planted rubber. The country is not self-supporting agriculturally as about one third of the necessary food supplies is imported. Rice is the principal food of the Asiatic population and some of the recent unrest is caused by a shortage of rice and the consequent high price. Good highways have been built through the settled part of the country. A railway, Government owned, extends from Singapore northward through the entire peninsula. The climate is tropical but health conditions are good for a tropical country. I was in Malaya from 1939 until January 1942, during the time of the simultaneous air attacks on Pearl Harbor, Manila, Hongkong, and Singa-

Jan 1, 1950

By L. A. Morley, W. T. Parry

Laboratory prepared clay-quartz sand samples and fault gouge from an open pit slope undergoing plane-type failure were tested in the laboratory to determine potential mining applications of electroosmotic stabilization and to provide a better understanding of electrochemical hardening. Experiments with very low current densities and free access of electrolytes to both anode and cathode showed an increase in cohesion. Cohesion in a fault gouge increased by 9.3 to 113%, depending on location with respect to the electrodes. For this, power consumption was equivalent to 0.727 watt-hr per cu ft (25.69 watt-hr per cu m). Regions of electrochemical hardening were determined by pH and the anolyte used. Electroosmotic stabilization appears as a reasonable solution to some types of mining problems.

Jan 1, 1975

By J. W. Cuthbertson, R. A. Cresswell

THE constitution of Cu-rich alloys with 1.5 to 13.5 pct Sn and 0.25 to 3.0 pct Be and the precipitation-hardening characteristics of alloys with 1.5 to 13.5 pct Sn and 0.25 to 1.0 pct Be have been examined. The hardness and tensile strength of the alloys examined increase markedly after solution treatment at 700°C followed by heat treatment at temperatures between 200" and 450°C. By a combination of cold work and heat treatment, hardness values similar to those exhibited by commercial Be-Cu alloys containing 2.25 pct Be can be obtained with ternary alloys containing 9 pct Sn and 0.75 pct Be and containing 10 pct Sn and 0.5 pct Be. Marked hardening effects occur with alloys containing even less beryllium. By heat treatment alone, a hardness value of 310 diamond pyramid hardness can be obtained from an alloy containing 10 pct Sn and 0.75 pct Be. Preliminary tensile tests have shown that an ultimate tensile strength of 110,000 psi with an elongation of 23 pct is obtainable by precipitation hardening an alloy with 8 pct Sn and 0.75 pct Be. The precipitation-hardening process has been followed microscopically for certain alloys and the inference is that, while the initial hardening effect is probably explained by the precipitation of the ß phase of the Cu-Be system, further hardening, proceeding at a much slower rate, also occurs, apparently as a result of precipitation of phases of the Cu-Sn system, particularly precipitation of the 6 phase at temperatures below 350". The presence of the e phase of the Cu-Sn system in certain alloys at temperatures below 350°C has been confirmed. Tin-bronzes are widely used in engineering applications where a combination of high strength and good resistance to corrosion is wanted. The maximum strength is induced in these alloys by cold working, and it would be an advantage for many purposes if high strength could be achieved alternatively by an age-hardening process. While Cu-Sn alloys have a good fatigue resistance they can be surpassed in this respect by Cu-Be, but the use of the latter alloy is limited by its high cost. If, by adding beryllium to tin-bronze, the properties of the respective binary alloys could to some extent be combined, a most attractive alloy should result. As pointed out by Raynor,¹ beryllium is on the borderline of the zone of favorable size factors for copper, and the solid solubility of beryllium in copper is consequently much more restricted than if the size factor were strongly favorable. The size factor is sufficiently favorable, however, to permit an increase in solid solubility with rise in temperature, and there is thus a composition range in which CU- Be alloys are susceptible to hardening by precipitation heat treatment. Although the a phase of the Cu-Sn system is similarly susceptible to precipitation treatment, the time necessary to establish equilibrium in commercial alloys of this type is usually so great that age hardening becomes impracticable. The addition of beryllium to Cu-Sn alloys would appear to offer a means of conferring on the latter useful age-hardening properties. Masing and Dahl² and others have, in fact, shown that the addition of beryllium to Cu-Sn a solid solutions renders these alloys susceptible to precipitation hardening and after such hardening confers on them an encouraging improvement in physical properties. If this improvement could be achieved by the addition of substantially smaller amounts of beryllium than are customarily found in binary Cu-Be alloys, the ternary alloys should possess economic advantages which might make them more attractive than the binary alloy for some applications. Binary Systems Copper-Tin: The constitution of these alloys is now reasonably well known and is summarized in the equilibrium diagram published by Raynor.³ The following observations, due to Raynor,¹ on the structure of those phases of the Cu-Sn system that are likely to be found in the ternary alloy system will facilitate the subsequent discussion on the examination of that system. The ß phase is an electron compound at the electron-atom ratio 3:2 and has a body-centered cubic crystal structure. This phase is stable only down to 586°C, at which temperature it decomposes eutectoidally into the a and y phases. The y phase has a structure that is also based on the cubic system. This phase is stable down to 520°C, at which temperature it decomposes eutectoidally into the a and d phases. The d phase is an electron compound (Cu³¹Sn8) which has a crystal structure analogous to that of 7 brass. This phase is stable from 590" to 350°C; on prolonged annealing at the latter temperature it breaks down into a mixture of the a and E phases. The e phase is an electron compound (Cu³Sn) having the electron-atom ratio 7:4. Its structure may be regarded as a superlattice based on the close-packed hexagonal system. This phase is stable from 676°C to room temperature. The primary solid solubility of tin in copper increases to a maximum of 15.8 pct as the temperature falls from that of the peritectic reaction to 586°C. The solid solubility remains constant from 586" to 520°C. At lower temperatures the solubility decreases progressively. Below 350°C the fall in solubility is pronounced and is associated with the precipitation of the e phase. This precipitation is very sluggish and does not normally occur under service conditions. Copper-Beryllium: The Cu-Be system has been investigated by Borchers' and others. Raynor5 summarized the present state of information on it.

Jan 1, 1952

By C. A. Pierce

UNDERGROUND operations of the United States Potash Co. at its mine near Carlsbad, N.M., have been continuous since the property was opened about five years ago. Approximately one million tons of potash has been mined and two shafts have been sunk, each to a depth of about 1000 ft. Outstanding in the company's operations is the fact that not a single blasting accident has occurred during the aforesaid period. The purpose of this paper is to describe the blasting practice that has made possible the achievement of this accident-prevention record. The mining method employed in extracting the thick horizontal bed of potash may be described as a double-entry room-and-pillar system. Mine development is kept well in advance of extraction operations, and a three years' supply of ore, at least, is always available. Limits of the orebody have not been determined, and in the present system of mining headings are advanced by a "shortwall" method. This was the first potash ore bed developed in the United States. The nature of the deposit, therefore, was unknown, and it was deemed expedient to outline a conservative mining policy. Later, when more is known about the deposit and certain control ascertained, a "longwall" panel retreating method may be found advisable. The necessity for a domestic supply of potash became a national issue previous to and during the World War. The United States Govern-ment came to realize that this country should not be dependent upon foreign sources of potash, and began extensive explorations in many parts of the country, seeking an orebody that would meet the exacting require-ments of the domestic market. The Department of Interior, through the Geological Survey and Bureau of Mines, made every effort to determine the location of potash deposits and encouraged their exploitation by private capital. Through the combined efforts of the Department of Interior and private industry, the deposit now being worked by the United States Potash Co. was discovered and brought into production.

Jan 1, 1936

By E. Maltby Shipp

YouR committee's secretary submits the following report, or summary, to the members of the committee, in an endeavor to lay before them a general review of the information so far received and also his own knowledge of the work as carried on at a number of plants, this being done in part to secure further information and suggestions from members and lead to a more effective means of furthering the work of the committee. It is suggested that more detailed data be compiled regarding engineering features involved, and that papers be contributed which will deal with the safeguarding of underground electrical installations. There are few operating companies which have not started a more or less systematic campaign to safeguard their employees from accidental injuries and unhealthful surroundings, but a great deal is to be gained by experience. All may welcome the advice and cooperation of those who have been actively engaged in the work and have demonstrated the results obtainable by organized effort, and it is, therefore, exceedingly gratifying to note the ready assistance and hearty cooperation rendered by the companies that may be truly termed pioneers in the movement. No solution of the safety problem is to be found in a skrict standardization of methods, rules or devices, as the various mining, milling and metallurgical practices present too many conditions differing broadly in general principles, but some standard system embodying principles already proven to be efficient should be created, which may be modified or elaborated to meet specific requirements of each individual company, or to fit working conditions as they exist in the various mining camps throughout the country. An industrial plant is primarily a business undertaking, therefore the economic side of a safety or welfare campaign is of importance. Many small operators have been deterred from undertaking the work by their belief that it involved an expense beyond their means, and one that could not be counterbalanced by greater efficiency or saving along other lines. This idea is generally due to a lack of knowledge of the actual costs of such work, and of the results secured by judicious selection of a method commensurate with the size and nature of the opera-

Jan 1, 1918

By R. W. Waterfill

MANY existing ore deposits of valuable metals have been worked out in their upper surface levels and the continued productivity of these mines is dependent on their extension to greater depths in the earth. The maximum depths at present reached are about 6000 to 8000 ft. below the surface, with no evidence of an impoverished ore vein. These mines are widely distributed; some of the best known are in South Africa, Brazil, India and in the western sections of the United States. Among the factors which increase the difficulty of working these mines at increasing depths are hoisting, rock pressure and temperature. The manner and effectiveness with which these problems are met will, no doubt, determine in a large measure the ultimate depths to which any mine can be profitably worked. The most critical of these three factors at present is the increase in temperature with depth. The high temperature and humidity in many of these mines at present is severely detrimental to the health of the workers and greatly hampers their efficiency. Some have almost reached a condition in which the human system cannot survive. The problems involved in the cooling and ventilation of mines have all been ably analyzed and presented in previous articles. For this reason, only a resume of conditions affecting the cooling and conditioning of deep and hot mines will be given in this paper before attention is directed to possible methods of improving atmospheric conditions in the working levels.

Jan 1, 1929

By J. A. B. Forster

The operations of the Electrolytic Zinc Co. of Australasia Ltd. involve the preliminary roasting of zinc concentrate from Broken Hill, New South wales, at a number of acid-making centers on the Australian mainland. The partially roasted material is shipped to the Tasmanian plant where it was formerly re-roasted prior to leaching,' but this practice was gradually abandoned in favor of the flotation of leach residue for the recovery of a concentrate containing about 22 pct sulphide sulphur and known as secontlary or Risdon concentrate.2 This change, together with increased zinc production, called for new furnaces at Risdon for the roasting of 10-50 tonst of secondary concentrcite and 90 tons of new concentrate per day. The war situation made it imperative that construction be commenced without delay and to save time it was decided to base the design on that of Skinner type furnaces which had been built in South Australia twenty years earlier. This involved some sacrifice of desirable features but did not prevent the incorporation of provisions which had enabled small Herreshoff type furnaces to roast secondary concentrate autogenously. The roasting rate in existing furnaces was 10-12 Ib sulphide sulphur per sq ft of hearth area per day, and eleven hearths, 20 ft in diam, were provided in the two new furnaces in anticipation that they would prove capable of the autogenous roasting of 130-140 tons of concentrate per day from 28-29 pct sulphur down to 4.5-5 pct, with an oxidation rate of 11-11.5 lh S/S per sq ft of hearth area per day. It was soon realized, when the first of the furnaces went into operation, that a much better performance than this might be given, and the purpose of this paper is to show how a treatment rate of 100 tons per furnace day, and oxidation rates approaching 15 lb S/S per sq ft per day have been reached. Furnace Design General specifications for the design were based on the results of experience with several other types of furnace and on the special operating conditions

Jan 1, 1950

Jan 1, 1966

By Joseph A. Norden, A. R. Willson

Much has been written concerning the hoisting equipment of various mines throughout the country, but most of the literature on the subject, if not all, describes equipment of extraordinary capacity and the small and medium-sized outfits have been neglected. The hoisting equipment here described is capable of handling about 1200 tons per day. It has not been worked to capacity, but 600 to 700 tons, together with men and materials, have been handled in two shifts without any great effort. Only one shaft extends from the surface to the lowest levels of the mine; see Fig. I. It is composed of three compartments, two of which are used for hoisting, and the third for water, air, and electrical lines, and for sinking purposes. In 1909, this shaft was raised from the 1000-ft. (304-m.) level to the 700-ft. There a station was cut and an air hoist installed. At this time all mining operations were confined to the upper levels of the mine; that is, above the 700-ft. The ore was dropped to this level through chutes from the 300-, 400-, 500-, and 600-ft. levels and then lowered in cars on cages to the 1000-ft., which is the main haulage adit, the mill and railroad bins being about 3000 ft. from the shaft. Orebodies were, in due time, developed on the 1000-ft. level and below. Therefore, in 1913,the shaft was sunk to the 1150-ft. level and thereafter sinking was continued at regular intervals until the 1500-ft. level was reached. But, hoisting from the 1300-ft. level was a difficult and slow process with the antiquated air hoist, so, in 1916, it was decided to raise the shaft to the surface and install a modern, electrically operated hoist. This was completed early in 1917 and the hoist was in operation in March of that year. The Hoist Figs. 2, 3, and 4 show various features of the hoist and electrical equipment. A Nordberg engine of the double-drum, geared type, designed for a 10-ton load, including rope, at a speed of 1500 ft. per min., is used. The drums are 7 ft. (2.1 m.) in diameter, with a 54-in. (137-em.)

Jan 1, 1922

By Gustav S. Preller, A. M. Gaudin

For the past 20 years it has been generally accepted that the flotation process is made possible as a result of the action of certain chemical substances on the surface of the mineral particles. In fact, it has been suspected, but never demonstrated, that this action produces on the mineral particles a layer of chemosorbed ions that is of the order of magnitude of a monolayer; that is, of a layer one ion deep. It is the purpose of this paper to present certain initial results on the relationship of mineral surface area and collecting-agent requirements. Up to about eight years ago, all considerations involving the surface area of finely divided solids were limited by the fact that there was not in existence any general method for determining the extent of such surfaces, especially on mixed materials. However, the method invented by Brunauer, Emmett and Teller1 has changed the situation by providing a general procedure (BET method). This procedure has already been applied to mineral dressing problems2-4 and has now received confirmation as to accuracy by an entirely independent method.' This confirmatory or "absolute" method uses a very tedious calorimetric procedure and is not suitable for routine determinations; but still another method6 now is available to relate the results obtained by the BET method to those obtained calorimetrically. This Harkins-Jura method has the advantage that it does not require an assumption concerning the parking area per molecule of adsorbate (nitrogen). In the original work by Brunauer, Emmett and Teller the parking area per nitrogen molecule was calculated to be either 13.8?2 or 16.2?2. according as the nitrogen was assumed to be closely packed as in crystalline nitrogen or loosely packed as in liquid nitrogen. The initial experimental work from this laboratory2 supported the 13.8?2. figure; that work was done on glass spheres of measurable geometric area and it was based on the assumption that the glass spheres were truly smooth; any deviation from this assumption would, of course, have made the calculated parking area higher. Harkins and Jura's results suggest that the parking area is not the same for all substrata; furthermore, the average of the 87 measurements cited indicates a "preferred" parking area for the nitrogen molecule of about 15.2?2., with extreme values at 13.7 and 16.9?2. The average of 21 determinations made in connection with this study7 gave a parking area of 14.3 ± 0.27?². In view of this result and of the Harkins and Jura

Jan 1, 1947

By Gustav S. Preller, A. M. Gaudin

For the past 20 years it has been generally accepted that the flotation process is made possible as a result of the action of certain chemical substances on the surface of the mineral particles. In fact, it has been suspected, but never demonstrated, that this action produces on the mineral particles a layer of chemosorbed ions that is of the order of magnitude of a monolayer; that is, of a layer one ion deep. It is the purpose of this paper to present certain initial results on the relationship of mineral surface area and collecting-agent requirements. Up to about eight years ago, all considerations involving the surface area of finely divided solids were limited by the fact that there was not in existence any general method for determining the extent of such surfaces, especially on mixed materials. However, the method invented by Brunauer, Emmett and Teller1 has changed the situation by providing a general procedure (BET method). This procedure has already been applied to mineral dressing problems2-4 and has now received confirmation as to accuracy by an entirely independent method.' This confirmatory or "absolute" method uses a very tedious calorimetric procedure and is not suitable for routine determinations; but still another method6 now is available to relate the results obtained by the BET method to those obtained calorimetrically. This Harkins-Jura method has the advantage that it does not require an assumption concerning the parking area per molecule of adsorbate (nitrogen). In the original work by Brunauer, Emmett and Teller the parking area per nitrogen molecule was calculated to be either 13.8?2 or 16.2?2. according as the nitrogen was assumed to be closely packed as in crystalline nitrogen or loosely packed as in liquid nitrogen. The initial experimental work from this laboratory2 supported the 13.8?2. figure; that work was done on glass spheres of measurable geometric area and it was based on the assumption that the glass spheres were truly smooth; any deviation from this assumption would, of course, have made the calculated parking area higher. Harkins and Jura's results suggest that the parking area is not the same for all substrata; furthermore, the average of the 87 measurements cited indicates a "preferred" parking area for the nitrogen molecule of about 15.2?2., with extreme values at 13.7 and 16.9?2. The average of 21 determinations made in connection with this study7 gave a parking area of 14.3 ± 0.27?². In view of this result and of the Harkins and Jura

Jan 1, 1947

By AIME AIME

THE No. 9 mine of the Wheeling & Lake Erie Coal Mining Co., a subsidiary of M. A. Hanna & Co., at Fairpoint, Ohio, has normally produced about 1000 tons of coal daily for several years, but recently it was converted into an experimental mine to afford means of studying new methods and equipment under consideration for development and mining. Among other projects, the possibility of using a duck-bill, self- loading conveyor in driving entries, with a view of in- creasing the rate of progress where quick development is of importance was studied. Actual operation soon revealed that even though break-throughs are made ,every 60 ft., as required by the state mining laws, the :amount of natural Ventilation reaching the working face was not sufficient to supply the men and that in ,order to obtain a plentiful supply of pure. air and maximum efficiency and to avoid costly interruptions after shots, it was necessary to supply auxiliary ventilation by using Ventube and a Vano fan.

Jan 1, 1929

By W. J. Taylor

The discussion on my paper entitled "Experiments with a Straight or No-bosh Furnace," read at the Philadelphia Meeting, September, 1884 (Transactions, vol. xiii., p. 489), suggests the propriety of slipplementing it with another, giving my views as to the cause of the failure, which was so decided as to create surprise among furnace men. As then stated, the Chester (8. J.) furnace, which had been 60 feet high, and 13 feet in diameter at the bosh, was altered to an 8-foot bosh, with a 7-foot hearth, 7-foot stock-line, and 4-foot bell,

Jan 1, 1886

The Institute conducts jointly with the American Society of Civil Engineers, American Society of Mechanical Engineers and American Institute of Electrical Engineers, certain activities as listed below, and is joint owner with them of certain properties. United Engineering Trustees, Inc. When Mr. Carnegie made his gift which made possible a home for the engineering societies, a separate corporation was organized to act as a holding company and to manage the common property. This was long known as the United Engineering Society, but the name has now been changed to one which more nearly reflects the real function of the corporation. It holds title to the Engineering Societies Building and to various funds placed in its charge and is managed by a Board of Trustees, of which three are chosen by each of the four societies, American Institute of Mining and Metallurgical Engineers, American Society of Mechanical Engineers, American Institute of Electrical Engineers and American Society of Civil Engineers, which have equal and undivided interests in the property. The land and building cost two million dollars. The interest of the Founders societies, aside from especial trust funds, is now valued at $1,987,793. The A. I. M. E. trustees are William H. Bassett, H. G. Moulton and R. M. Roosevelt. The President of the Board is Harold V. Coes and the Secretary, Alfred D. Flinn.

Jan 1, 1934

The Mascot-Jefferson City zinc mining district in eastern Tennessee has been a major zinc producer for over 60 years. The district lies within the Tennessee division of the Appalachian Valley and is underlain by folded and faulted Paleozoic rocks. The local formations are composed of limestones and dolomites with occasional shales, and sand- stones, and thin and scattered chert nodules. The regional structure of the district is unique in that it is complicated by irregular, distorted, and broken anticlines, synclines, domes, and major and minor post-ore folding and faulting.

Jan 5, 1976

By P. B. Baxendell

The appraial of producing properties and profitability ntzalysis of a proposed capital expenditure are based on the same principles. In both problems a projection of future cash income is. cornpared to one or more capital expenditures. Several different methods have been in use either to compute a price to obtain a given earning power on the investment or to compute the earning power which will result from a given capital expenditure. One of these, the "Average Annual Rate of Return" method, computes in a simple manner the ratio of the present value of the future earnings after amortization to the present value of the undepreciated balances of the investment over the life of a project. This method, not well known generally, appears to have some rather unique advantages in reducing the computation work required, eliminating trial-and-error solutions, and providing a more accurate answer when applied to oil industry investments subject to the unit-of-production basis of amortization. Its derivation is given and its versatility demonstrated in the solution of certain everyday investment problems. A number of charts, useful in applying this method to profitability analysis and appraisal work, are provided. The current trend in the market values of producing properties is shown. INTRODUCTION Making sound capital expenditure decisions requires an objective means of measuring the productivity of individual investment proposals. Since the best measure of the economic worth of such proposals is their ability to produce profits, it is common practice to grade proposed capital expenditures according to their annual earning power as a percentage of the outstanding capital. The same principles which govern the determination of the rate of return of proposed capital expenditures also apply generally to the problem of determining the appraisal value or purchase price of income-producing oil and gas properties. Both problems are of prime importance in the producing phase of the oil business, where management is faced daily with decisions to drill or not to drill certain development wells, or with the determination of the appraisal value of producing properties. The common feature in both problems is that a projection of future cash income is compared with a known or estimated capital investment to determine itsiearning power or annual rate of return. In the case of development drilling, the cost of the proposed well can usually be estimated with a fair degree of accuracy and the problem consists of finding the rate of return on the invested capital. In the case of appraising producing properties, on the other hand, the desired rate of return is usually known in advance and the problem consists of determining the purchase price which, for the given income projection, results in the fequired rate of return. Certain accounting procedures common to the oil and gas producing business make these two problems and their solutions somewhat different from corresponding problems in other industries, and, in certain ways, simpler. The main difference is in the amortization policy which, for oil and gas production, is frequently on a unit-of-production basis, compared to the amortization on a time basis used in many other industries. The purpose of this paper is to discuss briefly the various methods currently in use for the measurement of productivity of invested capital in producing properties and, in more detail, the derivation and application of what will be called the "Average Annual Rate of Return Method". This rather interesting and not too well known method has some very definite advantages in the solution of many problems common to the oil industry. For the sake of simplicity, federal income tax considerations have been disregarded in the examples used, since they do not affect the principles involved. The use of the production payment route in the sale or purchase of producing properties, which has been amply covered in many other publications, has also not been included in this analysis. METHODS FOK MEASUKING THE EARNING POWER OF INVESTED CAPITAL, Of the many different methods used to measure the earning power of invested capital, four are applicable to oil or gas production ventures. Depending on whether these four methods utilize one or two interest rates, and whether a fixed amortization pattern is used, they may be classified as follows.

By David A. Thomas, Eugene S. Meieran

MECHAMCAL, electrical, and other property measurements are often more easily made on wires than on sheets. In order to carry out transmission electron microscopy on the same material used for property determinations, we have developed a method for preparing thin foil specimens of wires. The technique was developed for 0.030 in. diam tungsten wires, and is a modification of the thinning techniques used by Wilsdorf, et al 1 A length of wire is first ground to about 0.010 in. thick by mounting the wire in low melting temperature wax, hand grinding a longitudinal flat, removing and reversing the wire in the mount, and then grinding a second parallel flat. The 0.030 in. wide and 0.010 in. thick strip is cut into 1/8 in. lengths to fit in the specimen holder of the electron microscope. Next the specimen is gripped in platinum-tipped tweezers (the anode) and placed 2 mm below a hol- low copper cathode with a 0.010 in. ID nozzle. Electrolyte, 10 pct NaOH, flows by gravity feed through the nozzle onto the specimen, as shown in Fig. l(a). Polishing is carried out until a shallow impression is made on one surface, and then the specimen is turned over and the opposite surface indented. The metal between the two impressions should be about half the specimen thickness, as is shown by the heavy line in the cross section in Fig. l(b). The entire specimen is then electropolishedin 2 pct NaOH until a hole appears at the location of the indentations. The apparatus is shown in Fig. 2, and is essentially the same as that used by Wilsdorf et al. at The Franklin Institute. Light is reflected by a mirror onto the bottom surface of the specimen! which is viewed by a stereoscopic microscope placed above it. Polishing is carried out until light is seen, indicating that a hole has formed, and then immediately stopped. The specimen is washed in water. alcohol, and ether, and is then ready for examination. The specimen should be reversed in its platinum clip during electropolishing to insure equal polishing on both sides of the impression. For tungsten, indenting at 120 v and 0.04 amp takes less than 1 min, and final polishing, at 10 v and 1 amp, less than 5 min. The portion of the specimen available for transmission microscopy surrounds the hole, as is seen by the dashed lines in Fig. l(b). Slight electroetch-ing accompanying electropolishing reveals the mi-crostructure, as seen in Fig. 3(a) by light microscopy. Low-magnification electron microscopy, as in Fig. 3(b), enables the same areas and grains to be viewed and identified when subsequently examined at high magnification. Fig. 4 is a typical structure of

Jan 1, 1963