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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 Charles R. Keyes

Discussion of the paper of Charles R. Keyes, Bi-Monthly Bulletin, No. 19, January, 1908, pp. 1 to 31. BERNARD MACDONALD, Guanajuato, Mexico (communication to the Secretary*) :-Mr. Keyes's paper is very interesting to me because of my personal experience with the development of the ore-deposits of Lake Valley. Seeing that many of the important facts connected with the early history of the development of these mines are either now unknown, or have become more or less distorted, and thinking that it would be interesting as well as valuable to have these recorded as a historical supplement to Mr. Keyes's elaborate paper, I present the following narrative: In February, 1881, soon after the Atchison, Topeka & Santa Fé railroad made connection with the Southern Pacific at Denting, N. M., the Lake Valley properties were brought to the attention of New York and Philadelphia capitalists by John A. Miller, of Silver City, N. M. At that time silver was $1.10 all ounce and silver-mining was very attractive. Vast fortunes were being made in Leadville and other Colorado camps, and Tombstone was pouring out its millions. Lake Valley, like all' other mining-camps in their early history, had its drawbacks, but the railroad, then passing within 14 miles of it, mitigated many of these. The camp lay in the foot-hills of the Black range, in which the Apaches had their stronghold, and raided, when it suited their convenience, the surrounding country, killing the prospectors and pioneer settlers and stealing their cattle. This band of Indians was joined by the outlaws and desperadoes from the frontiers of Texas, Arizona, and Mexico, who collectively defied the United States soldiers, restrained, as the latter were, by the mollycoddles from the East. The brutality of the Indian raids through Arizona and New Mexico in those days would scarcely be believed now, but they stain in deep

Feb 1, 1909

By Thomas A. Simpson, Tunstall R. Gray

The Birmingham district first produced steel from Alabama hematite ores in 1899. Since then, the district generally produced more than 6.0 million gross tons of ore a year to the late 1950's. Production has declined since then to an annual rate of about 1.5 million gross tons. Reserves calculated for the district are sufficient to last many years. Mining in the district is now confined to Woodward Iron Company's Vance and Pyne mines. The rocks exposed consist of about 15,000 feet of consolidated Paleozoic sediments with a thin veneer of unconsolidated Cretaceous sediments in the Vance area. The district is characterized by a distinctively parallel and subparallel, slightly arcuate series of faults and joint systems. In view of available information, it seems reasonable to conclude that the Birmingham red ores are of sedimentary origin, modified to a small extent by diagenetic replacement after original deposition.

Jan 1, 1968

By C. Kremer Bain

DURING the past several years of diamond drilling in Washington County, Mo., the St. Joseph Lead Co. has discovered a concentration of commercial lead-zinc ore at four different points within an area of 36 square miles. The largest and to date the most promising group of these orebodies is located in the Indian Creek area. It was considered to be of sufficient value to warrant development.

Jan 9, 1953

Jan 1, 1879

By Thomas B. Douglas

INSTRUMENTATION in the process industries can no longer be regarded as a convenience, but rather an absolute necessity. Although many chemical processes must already be conducted with instruments, every properly designed application of automatic process control will improve operation: 1) the product will be more uniform and of higher quality; 2) the manual labor saved will reduce cost; 3) uniformity of flow and uniform control of process will increase production; and 4) surges will be eliminated, making it possible to operate equipment near ultimate capacity at all times. Industrial instruments fall into two general classifications—those that measure and those that measure and control. The cement industry has been using instruments for a number of years, particularly in the burning process, primarily for indicatlng and recording. Automatic process control makes additional use of these instruments, and others, to control variables. Assisted by the instrument manufacturers, engineers at Ideal Cement Co. achieved considerable progress in determining how well the usual recording instruments could be made to control various phases of cement-making. The results of these experiments were used to make the new plant at Houston as wholly automatic as possible. The original Houston plant, built in 1937 by Gulf Portland Cement Co., consisted of only one 8 x 220-ft kiln and the necessary grinding mills and accessory equipment and had a capacity of 900 bbl per day (300,000 bbl annually). Ideal Cement Co. purchased this plant in 1940 and almost immediately started plans to increase its production. In 1941 a 9 x 220-ft kiln was installed and grinding and storage capacity were increased. The growing demand for cement in the Houston area necessitated a third kiln (9 ft 6 in. x 250 ft) in 1947. This brought the plant up to its present capacity of about 1.3 million bbl per year. Calcium silicates in cement are produced in a burning operation at high temperatures from raw mix of argillaceous and calcareous materials that have been crushed, mixed, and ground to a fine powder. The composition of this mixture must be kept consistent within narrow limits. Raw mixing and grinding may be done either wet or dry, but in both instances the materials must be correctly proportioned, finely ground, and thoroughly intermixed before entering the kiln. As the raw mix passes through a long horizontal rotary

Jan 1, 1959

By C. A. Meissner

THE following is a further discussion of the paper of James Gayley, " The Application of Dry-Air Blast to the Manufacture of Iron " (Trans., xxxv., 746), with special reference to his sup-plementary paper (Bi-Monthly Bulletin, No. 4, July, 1905, pp. 797 to 819), and. to the paper of J. E. Johnson, Jr., "Notes on the Physical Action of the Blast Furnace " (Bi-Monthly Bulletin, No. 5, September, 1905, pp. 1111 to 1146). Mr. Gayley's paper has been discussed also by E. Windsor Richards, R. W. Raymond, E. H. Saniter, W. J. Foster, H. M. Howe, V. Pendred, B. H. Thwaite, James Gayley and Alexander Pourcel (Trans., xxxv., pp. 1022 to 1042), Joseph W. Richards (Bi-Monthly Bulletin, No. 4, July, 1905, pp. 703 to 718); T. W. Robinson (Bi-Monthly Bulletin, No. 4, July, 1905, pp. 788 to 796) ; C. B. Dudley, R. W. Raymond, J. E. Johnson, Jr., W. F. Mattes, James Gayley, David Baker, John Birkinbine and F. E. Bachman (Bi-Monthly Bulletin, No. 5, September, 1905, pp. 1147 to 1152);.E. de Mille Campbell (Bi-Monthly Bulletin., No. 1, January, 1906, pp. 25 to 50) ; John Birkinbine (Bi-Monthly Bulletin, No. 1, January, 1906, pp. 137, 138). At the Washington meeting of the Institute, May, 1905, a very instructive and interesting paper was presented by Mr. J. E. Johnson, Jr., entitled " Notes on the Physical Action of the Blast Furnace,"' in which reference is made to Mr. Gayley's dry-blast process. A few of Mr. Johnson's conclusions, as summarized in the last pages of his paper, do not appear to me to be in complete accordance with the results obtained at the Isabella furnaces; and I therefore present the following notes which may throw further light on this subject: Mr. Gayley has called attention to the fact that the moisture in the air is an extremely variable and uncertain factor; and

May 1, 1906

By E. P. Pfleider

Important economic planning by industries, companies, financial firms and governments is predicated on estimates of future growth potential. Prior to the passage of the Taconite Amendment by the people of the State in November 1964, various admittedly conservative forecasts were made of the future of Minnesota's iron ore industry. Since that date, 3 new taconite plants are under construction, 2 are being expanded, one has just gone "on stream," and a seventh is in the design stage. These plants have a total capacity of about 35 million tons of pellets annually. The pessimism of 1964 today is being replaced by unbounded optimism. In the light of such recent developments, it becomes essential to update forecasts related to production, employment and capital investments. New projections show 50 to 58 million tons of pellet production from Minnesota by 1975. This tonnage, together with some 6 to 8 million of natural ores, should provide an annual full-time employment of 15,000 by the mining companies, plus 700 in related railroad and power producing activities and 1000 in plant construction. Total capital investment in new plants should reach $1.5 billion by 1975 and $2 billion by 1990. These current estimates indicate that the conservative goals as set in 1964 for the year 1990 should actually be achieved by 1975 or 1980. BACKGROUND Various forecasts1,2,3 have been made of the future consumption and production of iron ores within the United States. The most recent of these is by Harrison,1 delivered at the American Mining Congress meeting in Las Vegas in October. His estimates reflect the latest iron ore developments on a world wide front as well as the accelerating trend toward pellets. Minnesota's Natural Resources council prepared a detailed report in 1964 outlining the various factors that affect the future of Minnesota's iron ore industry. It presented estimates predicated on the

Jan 1, 1967

By George S. Barnett

The Equis and El Roble projects are located in the Cordillera Occidental of Colombia. The Equis vein deposits have sulfide ore reserves of 95,955 mt (105,770 st) grading 8.51 g/mt (0.248 oz/st) gold and 12.4 g/mt (0.36 oz/st) silver with 0.94 % copper, 1.10 % lead and 11.06 % zinc. Ore reserves at El Roble are estimated as 1.1 Mmt (1.21 million st) grading 4.89 % copper and 3.39 g/mt (0.099 oz/st) gold. Geologically possible reserves at Equis may total 1.6 Mmt (1.76 million st). El Roble has the potential to contain several tens of millions of metric tons. Exploration included diamond drilling, trenching, channel sampling, rock and soil geochemistry, geophysics and tunneling. Erratic high grade samples affect the weighting of channel and drill core samples. Secondary reconcentration of gold is also a factor. Sample maps and graphs show the distribution of values to be highly variable. Geostatistical treatment of some of these data gave important guidelines for parameters such as sampling densities, drill hole spacing and confidence limits.

Jan 1, 1985

Jan 1, 1880

By Elmer W. Pehrson

NINETEEN FORTY-SIX was an eventful year for the mineral industries. Perhaps the most significant development was the socialization of industry in Great Britain, initiated in 1945 but carried to fruition in the coal industry in 1946. On Jan. 1, 1947, management of the coal industry will be vested in a National Coal Board, responsible to the Ministry of Fuel and Power. A sum of £164,660,000 has been provided to compensate private owners for assets transferred to the Board. The British coal industry has been a problem for many years. Production has declined to a point where serious shortages of fuel for domestic needs have developed. Exports have dwindled to a small fraction of the previous trade. Costs have increased greatly, and quality has deteriorated. The industry's physical plant has not kept pace with the rapidly mounting wage scales in recent years. Some claim that the best and most accessible coal reserves of Britain are heavily depleted. The industry has been harassed by difficult labor problems, including bad morale among the workers and a shrinking labor force.

Jan 1, 1947

By JOHN JERMAIN

In my opinion, the explanation of the fuel-requirements involving the conception of heat available and necessary above a critical temperature, as advanced by Johnson 1 and elaborated by Howe, Raymond and others,2 affords a theoretically correct basis for such an accounting. It is the purpose of this paper to set forth a first crude attempt to construct a formula which shall show quantitatively the relation between the various factors affecting fuel-economy, and afford a means of comparing the enormous amount of data on the fuel-consumption of various blast-furnaces, at various times and under various conditions of operation. I have also applied this formula to a large number. of individual cases, and have, by its means, compared the furnace-practice of several important iron-making districts. II. DERIVATION OF FORMULA FOR FUEL-REQUIREMENTS. The general expression for the fuel-requirements of the blast-furnace, which I believe to be theoretically correct as to form, is as follows Carbon per ton of iron = Heat per ton of iron necessary in hearth above Tc./Heat per pound of carbon available in hearth above Tc. XFactor of rate of driving. +Carbon dissolved by CO2 of flux. +Carbon dissolved incidental to reduction of ore. + Carbon dissolved in pig-iron. (NOTE.-Tc = critical temperature.) Since, according to Johnson's theory, fuel-economy is usually limited by heat available and necessary in the hearth, rather than by the total heat supplied and necessary, we may write Carbon needed in hearth = Hn/Ha in which Hn is the heat per ton of iron necessary in the hearth above some critical temperature, and Ha is the heat per pound of carbon available in the hearth above this same critical tem¬perature. 1 Trans., xxxvi., 454 (1906). 2 Trans, xxxvi., 792 to 798 (1906) ; Trans, xxxvii., 216 to 237 (1907).

May 1, 1911

By John S. Alexander

By Robert Livermore

IT has been a noteworthy feature of the Cobalt camp, that many of the valuable ore deposits have been covered, wholly or in part, by small but usually deep lakes, such as Cobalt, Cart, and Peterson lakes, and with the subject of this article, Kerr lake. In the early days of the camp many water-covered areas, which have since been found to be valuable, were ignored, or neglected by owners, or simply perfunctorily staked for water rights. Kerr lake is probably the evidence of a fault or sharp fold, having a general east and west strike, and containing a series of ore-bearing fissures, parallel generally to the strike, although having some notable exceptions to the general rule. On the north side of Kerr lake the formation is of diabase, while on the south side it is of Huronian slates and conglomerates. These Huronian measures extend out under the lake, dipping gently to the north to a lateral distance not yet definitely determined, owing to the lack of development under the deepest parts of the lake. Probably the contact between the diabase and Huronian or else between the former and the .underlying Keewatin formation occurs somewhere near the center of the lake. Kerr lake originally covered 45 acres. Of this the Kerr Lake Mining Co. owned 12, the Drummond Mine, 7, and the Crown Reserve Mining Co. the remainder of 26 acres. Since the latter's property was originally entirely under water, it was necessary for the owners to make land for buildings and shaft room. Accordingly, in 1908, a trench was blasted out which deepened the outlet, and lowered the lake 8 ft. As many of the rich veins of the Crown Reserve and Kerr Lake companies were under water, mining was pursued under some disadvantages. Fortunately the rock is tight and solid, and mining has been done sufficiently far from the surface to avoid unnecessary risk. Nevertheless, there was always danger of encountering open seams, through which too large a flow of water for comfortable working might come. Careful soundings were made over the veins, y means of steel-shod pipe, through mud and water to bedrock, but there was sometimes an element of uncertainty as to whether actual bedrock had been reached. Furthermore, the necessity of leaving safe backs between workings and lake tied up large quantities -of-ore, -and- made development- in certain

Jan 7, 1914

By Fredrick C. Kruger

Introduction This surprisingly little-known group of minerals, the nonmetallics, so-called for their lack of metallic luster, is the largest group of the mineral kingdom, and cinstitutes perhaps 75 percent of all mineral species. For the most part, these minerals are compounds of the common acids, oxides, hydroxides, and two elements, carbon and sulfur. The list of the non- metallic minerals, therefore, is very long. It includes the borates, carbonates, chlorides, fluorides, nitrates, phosphates, silicates, sulfates, and less commonly, arsenates, chromates, molybdates, suliides, tungstates, and vanadates, the latter groups, and many of the oxides, being sought principally for their metal content. Those nonmetallics used commercially are generally called the industrial minerals, although in addition this term also includes a considerable group of rocks. The list of industrial minerals and rocks is continually growing as new uses are found, and it now numbers over 300 commodities. The industrial minerals industry has developed since about 1920. There- fore, the development has been fast, and it has been more or less parallel with the development of the art of minerals beneficiation. General Discussion of the Group This group is so heterogeneous that it has defied logical, or widely accepted, classification, whether by origin, composition, or end use, and perhaps for this reason the industrial minerals generally have received short shrift in both teaching and research. Except for those involved with asbestos, cement, fertilizers, gypsum, salt, sand and gravel, few large companies have deigned to enter the field, and consequently most industrial minerals have been developed for the most part by the small operators or entrepreneurs. Yet surprisingly, except for one war year, the nonmetallics have always surpassed the metals in value and tonnage (Fig. 1). One main characteristic that most of the nonmetallics have in common is direct sensitivity to labor and transportation. In other words they are characterized by large bulk and low-unit value, and hence have what might be termed a "place value".

Jan 1, 1971

By Oliver Bowles

A HEAVY gel of bentonite clay has been proposed as an effective lubricant to speed down the ways to sea, river, or lake, the mighty cargo ships now hitting the water at the rate of about three a day. Another unusual application of a nonmetallic mineral is in food conservation, for the claim has been made that the next new item on the menu for poultry and rabbits will be vitamin tablets prepared from mont-morillonite clay. These uses have minor importance but illustrate not only the diversity in utilization, but the notable trend in 1942 toward mobilizing nonmetallic minerals for the war program. Although occupying less headline space than iron, steel, copper, aluminum, magnesium, and other metals, the nonmetallics are filling important emergency needs. Mica and quartz crystal are essential to communication; asbestos is urgently needed in fireproof heat and electrical insulation; and strontium minerals are utilized in the manufacture of signal flares and tracer bullets.

Jan 1, 1943

By Leon Orlowski

THE oil-bearing districts of Poland are found on the slopes of the Carpathian Mountains. The oil belt extends from Gorlice southeast to Stanislawow. It is approximately 250 miles long and 30 miles wide, and comprises four geological districts: the western, or Gorlice district; next, to the east, the Krosno district; the Boryslaw district; and, in the extreme southeast, the Stanislawow district. The amount of petroleum produced in Poland from the beginning of the oil industry scarcely totals 26,000,000 metric tons, or 15 per cent. of the estimated supply. Of this amount, 18,000,000 tons have been taken from the fields of Boryslaw within 25 years; and only about 8,000,000 tons from all other fields within a period twice as long, although some of these other fields represent just as good possibilities as did Boryslaw at the beginning of its development. The Polish oil industry was severely stricken by the war. The retreating Russian armies, in 1915, destroyed a large number, of the existing oil wells, nor was the post-war period favorable for the development of this industry;; the money and credit stringency interfered with the expansion of drilling. But since 1921 there has. been a slow steady increase in production and there is now every reason to believe that conditions in the industry will improve. In fact, an increase in new drillings has been reported for the current year. The production of crude oil in Poland, in 1913, amounted to 1,113,668 metric tons. In 1914, the production declined- to 655,600 metric tons. In 1921, the production was 705,596 tons; in 1922, 712,428 tons, and in 1923, 737,182 tons; or more than 5,000,000 bbl. But the fields have a much greater potential output, which could be realized were the capital available for prospecting and new drilling. The principal producing, and at present most exploited, fields are around Boryslaw and Schodnica. These fields were developed rapidly for in the first year of their modern exploitation the wells were gushers of moderate depth. However, as a result of heavy drilling, the shallow folds have been exhausted and oil can be reached now only by deep drilling. Wells of almost 5600 ft. have been drilled in Boryslaw. Because of these drilling conditions, a large number of engineers and workmen specially skilled in deep drilling are to be found in this field.

Jan 3, 1925

By Charles M. Rolker

(Read at the Philadelphia Meeting, February, 1878.) THE Mariposa estate, a grant made by the Mexican Government to Juan B. Alvarado, during the time when California was still under the dominion of Mexico, was purchased in 1847 by J. C. Fremont, and the United States patent issued to him in 1856. By sale, or its equivalent, money advanced, the property came into the hands of the Mariposa Company, June 25th, 1863, and through a varied existence of work and temporary inactivity, has as yet been kept as an undivided property, and rests at present with the Mariposa Land and Mining Company of California. I pass over this period of 15 years without giving the history of the ups and downs of the estate, partly because it is familiar to many, and also because I think in such a case this paper would assume too much the character of a narrative. The estate is situated in Mariposa County, California, about 170 miles southeast of San Francisco. It begins in lat. 37° 26’ 38" - north, and long. 119° 55' west, and runs 6 miles north; thence 6 1/2 miles west; thence 5 miles northwesterly towards the Merced River; thence 8 1/2 miles southerly; thence 3 miles easterly; thence 1 mile southerly; thence 2 miles easterly; thence 2 miles southerly; thence 2 miles easterly; thence I mile southerly; thence 2 miles easterly; thence 1 mile northerly, and thence 2 miles easterly to the place of the beginning; embracing 44,387 acres (70 sq. miles) more or less. To describe this vast estate in detail as to its full geology, its numerous quartz veins, its many facilities to exploit them and work them by cheap methods, would lead me further than I intend to go at present, and I will content myself to describe the latest workings of the company and its immediate field of operations. As long ago as 1860 the late Dr. Adelberg advised the running of an adit from the northwestern edge of the estate at Benton Mills on the Merced River. His object was to undercut the deepest workings of the then paying mines on the estate-the Pine Tree and Josephine. Following this advice, the tunnel known as "River Tunnel" was commenced. Its entrance is in S. 5, T. 4, S. R. 17 E. It is run in

Jan 1, 1878

By L. E. Young

IT has been said the British Empire was built on British Coal. In all the postwar planning for Great Britain the necessity for producing cheap coal and the prosperity of the coal industry are given first consideration. On Jan. 23, 1945, there was released in London a "Report to the Colliery Owners" which had been awaited with great interest. This was entitled "A Plan for Coal" and was the recommendation of Robert Foot, chairman of The Mining Association (Colliery Owners), prepared at their request. Presentation of the "Plan" at this time is particularly significant as it is an answer to the demand for nationalization of the coal industry by the Labour Party and at the same time is a carefully considered program for postwar reconstruction, prosperity, and stability. In the words of Mr. Foot, If the coal industry for the first ten years after this war is to find itself in a situation similar to the one it occupied for the ten years following the last war, with its record of disputes, strikes, stoppages, short-time working, unemployment, and, with it all, a completely insufficient margin of profit, and all the insecurity and instability in our basic industry that was brought with them, it is goodbye to any real prospect of full employment, social security, and high standard of living. To present an elaborate review of the conditions which have brought to a crisis the unfortunate situation in the British coal industry is here unnecessary, but certain of the salient points

Jan 1, 1945

By J. Chupak, D. J. Salley, G. L. Simard

Radiotracers were demonstrated to be of considerable value in a study of the interaction of dithiophosphate with galena. The interaction had characteristics of both chemisorption and chemical reaction, being complex because of the nature of the galena surface. Sorption was rapid and markedly reversible, and flotation occurred at relatively small amounts of dithiophosphate sorbed.

Jan 1, 1950