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By Ray W. Ballmer

"For his leadership in developing and managing large, complex, and technically innovative mines, particularly the outstanding and successful Bougainville mine and for his lecture, 'The Moving Targets of Mine Development '. " Recipient of the 1981 D. C. Jackling Award

Jan 1, 1982

By R. C. FLEMING

MINING rock asphalt for use as a paving material is an industry which has grown with the spread of the good roads movement. "Mineral Industry During 1930" reports asphaltic pavements constructed, including maintenance and repair but excluding pavement constructed with road-oil, cut-back or emulsified asphalt, as grown from 23 million square yards in 1911 to a high of 144 million in 1927. In 1930 the same source reports 106 million square yards of such paving laid and, in that year, 664,871 tons of native rock asphalt were so utilized. Many states contain rock asphalt deposits of greater or less importance but in only a few places are the de¬posits being mined commercially. In the year cited Ken¬tucky produced 305,024 tons of bituminous sandstone, Texas 270,138 tons, mostly bituminous limestone, while Alabama, Oklahoma, California and Utah produced 89,709 tons of bituminous rock for road construction. In addition Utah produced 37,906 tons of the purer asphaltic products, gilsonite, wurtzilite and ozokerite, for other uses. Speaking generally, the rock asphalt is a sandstone or limestone naturally impregnated with asphalt to an extent that makes it an ideal road surfacing material without mixing or treatment other than crushing. The asphalt content of the commercial product runs 8 to 12 per cent.

Jan 1, 1933

By J. R. Stone, J. T. Roy

ASARC09s continuous tapper for lead blast furnace is described. Its use throughout the company's plants has resulted in higher production rates, lower labor costs, and better working conditions. It has also permitted wide latitude in blast pressures, as well as in charge and slag compositions. The practice of tapping a lead blast furnace has remained essentially unchanged for many years. In principle, it is a batch operation discharging the products from the continuous smelting of lead-bearing materials. As such, it imposes certain restrictions on the proper functioning of the smelting operation. First, it calls for a highly developed sense of timing, and a considerable amount of physical effort on the part of the operator. Dirty and hot working conditions, as well as the hazards of flying metal and slag, usually prevail. These conditions have resulted in higher labor costs, both in rate and in amount. Labor turnover has also been high. Secondly, rigid control of mechanical and metallurgical factors must be maintained. Frequent oxygen lancing of the tap hole is needed to permit tapping, thereby increasing operating costs. Rapid increases in smelting rate, plugged tap holes, or forgetfulness on the part of the operator may permit the molten material to rise above the tuyeies and freeze the furnace. Also, the operator will often blow out the tap hole after draining, filling the area with fume. Composition of charge also vitally affects the tapping. The type of lead-bearing material being smelted will naturally affect the smelting rate, and thus the frequency of tapping. The amounts and types of fluxing materials, which determine the ultimate fluidity of the slag, must be regidly controlled. Finally, the batch tapping of a continuous smelting operation of this type appears to be wrong in principle. The molten material drains into the crucible at the bottom of the furnace where it starts cooling immediately and continues to cool until tapped out. While keeping the lead molten is no particular problem, maintaining a fluid slag at all times is often difficult, and sometimes impossible. These factors all point to the desirability of a method for the continuous tapping of a lead blast furnace. The expected advantages would be more desirable working conditions, lower labor costs, increased production, and a much wider latitude in both blast pressure and charge composition. CONTINUOUS TAPPING Historical. A number of devices, e.g., mechanical tappers, siphons, and lead wells, have been tried in the past in attempting to effect continuous tapping. None proved to be entirely satisfactory for tapping lead and slag simultaneously. It was not until 1955, however, that ASARCO designed and put into operation a successful tapping unit at its East Helena, Mont. lead smelter. This unit is described in detail in U.S. Patent NO. 2,890,951. Continuous Tapping Unit—See Figs. 1 and 2. Fig. 1 is a schematic drawing of the unit in place, showing front and side views. The component parts are identified in the caption. Fig. 2 is an actual photograph, front view, of the tapping unit attached to the base of the blast furnace. Operation. The operation of the tapping unit is quite simple. Essentially it consists of a narrow tapping bay surrounding the furnace tap hole, with a deep notch in the front wall. When the blast furnace is started this notch is open down to the level of the tap hole. Starting the furnace may be accomplished in several ways but the most satisfactory method is to plug the tap hole with clay, permitting metal and slag to build up inside the furnace. Before the liquid reaches the tuyeres, the plug is removed and the furnace is drained to the settler. The blast is then stopped momentarily while the notch in the front wall of the tapping bay is dammed with chrome brick and plastic chrome ore. The blast is again started, and the height of the dam is adjusted so that the liquid in the bay will counterbalance the internal pressure of the furnace. When the desired level is reached the slag and metal will overflow to the settler. It should be noted that the molten material ,is not siphoned from the furnace and that the metal 'acts as a liquid valve controlling the flow of slag through the tap hole. During normal operations the tapping bay is filled primarily with lead, covered with a thin layer of slag. Thus, the heavier lead plays the major role in compensating for variations in furnace pressures. Due to the high specific gravity of lead, changes in the liquid level in the tapping bay will never exceed a few inches. For this reason it is seldom necessary to change the height of the dam due to minor variations in operating conditions. Some turbulence of the liquid in the bay is essential at all times. This indicates that the level of the

Jan 1, 1963

By H. Jehn

Like some other Pt-group metals palladium shows a low but considerable solid solubility of oxygen, which was found already from oxidation studies. The oxygen solid solubility of palladium in equilibrium with gaseous oxygen has been investigated at 900 - 1300 °C in oxygen (665 mbar) and air by gassing and analyzing polycrystalline samples. The 0-concentrations range from 40 to 90 ppm and decrease with rising temperature. The isobaric solubility can be represented by the least-squares fit log c0 = 0.5 log p02- 0.32 + 920/T (c0 in wt. ppm, p02 in mbar, T in K). The thermodynamic data of the exothermic solution reaction are calculated to ?H°= -17.6 kJ?mol-1 and ?S° -76.5 J?mol ? K-1. The behaviour of palladium in an oxygen atmosphere is characterized by the simultaneous reactions of the solution of oxygen in the metal and the formation and evaporation of volatile oxides besides the pure metal evaporation.

Jan 1, 1984

By K. Takahashi, I. Iwasaki

it is well known1 that racemic mixtures of optical isomers can be separated by passing their solutions through a column packed with r- or 1-quartz powder so that one of the isomers becomes adsorbed selectively on the asymmetric quartz surfaces. Although the natural occurrence of r- and 1-quartz is more or less equally distributed, some localities show enough deviations toward a higher proportion of l-quartz2 to suggest that optical isomerism might influence quartz flotation. Beta-amines have an asymmetric carbon atom, and therefore optical activity may be expected. Beta-amines are reported to behave quite differently from alpha-amines in the flotation upgrading of certain oxidized iron ores.3 It is of interest, for both practical and theoretical reasons, to determine whether or not optical isomerism plays a role in the amine flotation of quartz. In this article the results of Hallimond tube flotation tests and of adsorption measurements using d-beta-phenylisopropylamine on both r- and 1-quartz are compared. D-beta-phenylisopropylamine was chosen for the tests because it is commercially available in optical isomers. MATERIALS AND METHODS Brazilian quartz crystals were hand-sorted according to the difference in trigonal trapezohedral faces, and each crystal was further checked by the Airy's spiral.4 The respective crystals were then crushed, and the -150 + 200-mesh fractions were screened out for the Hallimond tube tests. The samples were cleaned by brief leaching with warm, dilute hydrochloric acid, and then by repeated rinsing with distilled water. In preparation for the adsorption measurements, they were then dry-ground in a pebble mill for several hours, washed a few times with distilled water, and finally dried in a vacuum desiccator. By means of the Krypton gas adsorption method, the specific surfaces of r- and 1-quartz samples were determined to be 27,700 and 19,800 sq cm per gm respectively, the difference being due mainly to the decantation procedure rather than to the inherent difference in their grindability. D-beta-phenylisopropylamine was the only collector used in the study. It was solubilized by neutralizing with 110% of the stoichiometric requirement of 0.1 N hydrochloric acid. The specific rotation of the d-beta-phenylisopropylamine was determined with a polari-meter using sodium D line to be, Although the d-beta-phenylis~prop~lamine showed absorption maxima in the wave length region of 250 to 270 millimicrons, due presumably to the phenyl group, these peaks were too sensitive to be used for colorimetric determination of the residual concentration in the adsorption measurements. The amine-picrate method, used in the colorimetric analysis of dodecylammonium chloride,' was found to work satisfactorily for the d-beta-phenylisopropylamine. The adsorption densities were thus determined after equilibrating 40 gm of the ground quartz sample with 300 ml of solution by tumbling in separate glass-stoppered Erlenmeyer flasks for one hour. EXPERIMENTAL RESULTS Fig. 1 presents the adsorption densities of d-beta-phenylisopropylamine on the r- and 1-quarts in the pH range of 6 to 7.5. In agreement with data reported in the literature, the adsorption density of d-beta-phenylisopropylamine was slightly higher on the r-quartz than on the 1-quartz, although the difference was not as pronounced as one might expect from the capacity of r-quartz and 1-quartz to separate racemic

Jan 1, 1969

By Eugene Stephenson

CRITICAL analyses of the work expended in producing oil by the utilization of gas energy have appeared in the publications of Shaw,1 Pierce and Lewis,2 and Herold,3 authors who have ably discussed the factors which must be taken into consideration in comparing energy consumed per barrel in various wells which are flowed by means of gas-lift. However, two distinct phases of oil production are concerned with the ratio of gas energy consumed to oil produced. One of these phases is the gas-lift, which utilizes the differential gas pressures for the purpose of flowing oil, whether these pressures be natural reservoir pressures or be induced by artificial compression of gas or air. The other phase has to do with prorating oil production in pools which are operated either as units, or are subject to such restrictions as those imposed at Oklahoma City by the Corporation Commission, or, by similar controlling groups in other fields. An abundance of literature is available relative to the problems of flowing wells by gas-lift, but the first suggestion that the energy of the gas within the oil and gas pool might serve as a basis for proration, appeared in the timely article by McWilliams.4 Much of the. dissatisfaction with proration in certain fields is because some operators feel that besides the hazard to the wells which accompanies the test, the method of allocating production on the basis of the "potential" gage is inequitable and gives some operators a distinct advantage over others.5 The most severe penalty may be exacted from the most progressive operators or those who attempt to produce their oil with a minimum quantity of reservoir gas. If :no difficulties ever

Jan 1, 1931

By W. Hurst

The authors of this paper, in substituting values in a material balance equation associated with a gas reserve and a water drive, cannot find sustainment of what the gas in place should be; therefore, their conclusion is that this type of problem dealing with gas reservoirs is insoluble. They have introduced the word, "cybernetics," based on the work of Norbert Wiener, that further extends this line of reasoning, namely, to the effect that the system is a "black box", and that the gas reservoir and aquifer can take on infinite aspects 'based upon their past performance, to quote the authors. The inference is that this black box is an unknown. which permits in computer programming to subscribe as many variables as possible to observe by adjustment of one to another those combinations of conditions that fit field behavior. This may satisfy those in this discipline whose dedication is to programming, but to the others this is a comparison to the rationalization of the combinational results of the throwing of dice—a probability procedure. In reservoir engineering we are more direct. We learn from the examination of individual we'll and field data exactly what is in this black box. I now come to the impasse that has confronted these authors in their machine calculations. In this I have reproduced from their own production data (Tables 1 and 2 of their paper) pressure vs cumulative gas produced. shown as Figs. D-1 through D-5. A perusal of any of these five plots, for the corresponding fields in the Po Valley, shows the straight-line relation of pressure vs gas produced, evidencing pressure depletion. The point I make is that in their fundamental production data, there is no variance from a straight line that can support a water drive.

Carlisle: An old friend and good friend, Alan Bateman, is the Silliman Professor of Geology Emeritus at Yale and editor of the Journal of Economic Geology. Now, Alan, let's start off by telling us something about how you became interested in copper. Bateman: Well, after I left Yale in 1913, I was appointed one of the field members of the Secondary Enrichment Investigation. We spent three years in the field studying all the copper deposits of North America, trying to find out how secondary copper enrichment took place. As part of this investigation, I went up to Kennecott, Alaska, in 1916. After the trip I was asked by the president of the company to become consulting geologist to them. I accepted his offer, and to this day I'm still consulting geologist to the Kennecott Copper Corp. Up at Kennecott, there were both Henry Krumb and my good friend Henry DeWitt Smith, who was general superintendent. He and I had been together at Yale, and I had ushered at his wedding. Interestingly enough, Henry took his bride to Alaska and I took mine there two months later. My assistant was Don McLaughlin, and I think that was his first experience in a mining camp. We published a paper on Kennecott together and cemented a friendship lasting to this day.

Jan 11, 1964

By T. C. Craig

For the year 1934, there were 382 oi1 wells completed for a total initial of 146,965 bbl. Fifty-three wells were deepened for a total increase of 8363 bbl., bringing the total volume of new oil to 155,328 bbl. As of Jan. 1, 1934, the daily potential of the field as determined by the Texas Railroad Commission was 159,740 bbl. Of this amount 26,429 bbl. is "marginal oil," and 2682 bbl. is exempt on account of water. In December, 1934, the daily potential was established by the Railroad Commission as being 297,501 bbl. with a daily allowable of 56,800 bbl. Of this amount 31,993 bbl. is "marginal oil," and 2183 bbl. is exempt on account of water. There has been no field-wide test made during the year, and as a result the rated potential of the field is in all probability much higher than the actual potential. As each new well comes in, a five-day test is made under the supervision of the Railroad Commission. The potential thus established is added to the field potential and shares its pro rata part of the market outlet, which is the allowable production, no allowance

Jan 1, 1935

By Ivan B. Cutler, Milton E. Wadsworth

Coprecipitation of anionic and cationic polyelectrolytes has been applied to flocculation of several mineral systems. Results obtained in a study of the flocculation of kaolinite and hematite suspensions of polycationic and polyanionic electrolytes are presented. Greatly increased settling rates were observed following precipitation of positive and negative polyelectrolytes on the surface of finely divided minerals in aqueous suspension. The ratios of polycationic to polyanionic electrolytes required to produce maximum sedimentation have been shown to correspond closely with the equivalence points obtained by light scattering studies of systems containing the positive and negative polyelectrolytes by themselves.

Aug 1, 1956

There were present twelve- Directors, the Secretary and the Assistant Secretary of the Institute, and fifteen guests. A committee of three was appointed to draft a suitable resolution of memorial of the services of Joseph Esrey Johnson, Jr. The committee consists of Joseph W. Richards, Chairman, J. V. N. Dorr and Allen H. Rogers. William R. Walker was elected a Director in place of J. E. Johnson, Jr., and Edwin Ludlow was elected a member of the Executive Committee in his stead. George C. Stone was appointed Chairman of the Committee on Membership in place of Mr. Johnson. The following resolutions were then adopted: RESOLVED, That a special business meeting of the Institute be and the same hereby is appointed to be, held at the office of the Institute, No. 29 West 39th Street, Borough of Manhattan, City of New York, on the 27th day of June, 1919, it 8.30 o'clock in the P. M. to consider and take action upon the proposal to change the name of the Institute to "American Institute of Mining and Metallurgical Engineers, Incor-porated," and the further proposal to extend the corporate purposes of the Institute so that it shall, in addition to its other powers, be empowered to promote the arts and sciences connected with the economic production of the useful minerals and metals, and the welfare of, those employed in these industries, by all lawful means.

Jan 6, 1919

By E. J. Bonet, P. B. Crawford

It is fairly common practice to reinject water into the aquifer near the oil-water interface in water-drive reservoirs. There have been many studies of aquifer behavior without reinjection,l-5 but apparently no analytical studies have been made to indicate performance when injection wells are present in the aquifer. The diffusivity equation may be used to describe the pressure behavior in an aquifer. When sources are present it can be written as A general solution of Eq. 1 may be obtained as the sum of two solutions. One is a general solution of the homogeneous equation, obtained by dropping the source term in Eq. 1 and still satisfying the required boundary conditions. Another is a general solution of Eq. 1 satisfying homogeneous boundary conditions.1° The first solution, which corresponds to the aquifer without reinjection, has been given quantitative and qualitative treatment in the literature.l-5,8,9 The latter solution will be treated here. Solutions with variable injection rates are obtained by superimposing solutions with constant rates, so we have considered only the latter. Five cases have been treated here: 1. A linear aquifer of finite width and extent. Water is injected into the aquifer at point xo, yo at constant rate. The pressure along the line x = 0 is maintained at zero pressure. (See Fig. 1.) Equations showing the pressure distribution, rates, velocity and cumulative influx have been developed. Certain numerical results are shown. 2. A linear aquifer of finite width and extent. Water is injected into the aquifer at point xo, yo at constant rate. The rate of production along the oil-water water contact is maintained constant. Equations showing the pressure distribution inside the aquifer are presented. 3. A linear aquifer of finite width and extent. Constant pressures are maintained at opposite ends of the aquifer. Water is injected at constant rates at point xo, yo. Equations showing the pressure distribution are shown. 4. A linear aquifer of finite width and infinite extent. The pressure is maintained constant at the oil-water contact. Water is injected at a constant rate at point xo, YO. 5. A linear aquifer of finite width and finite extent. The pressure at the oil-water contact is maintained constant. Water is injected at constant rate per unit length along a line x,. The Linear Aquifer The linear closed aquifer, performing at constant terminal pressure was selected as the first case to be analyzed. The development of the equations is based on uniform injection per unit of thickness, and gravity effects are neglected. In practical application this condition is probably most closely achieved when the

Jan 1, 1970

Jan 1, 1971

By V. H. Whihelm

Since 1935 California has enjoyed a remarkable cycle of discovery, which has placed the state in a very satisfactory position in regard to oil reserves. Most ol the geophysical plays have been drilled and it is possible that new discoveries must be made by the application of careful geologic and stratigraphic studies. During 1940 only one new field was discovered, which, although not of major importance, may lead to additional discoveries. During the year, 113 wildcats were drilled. New discoveries, extensions and a reappraisal of discoveries made in 1939 will not approximate over 50,000,000 bbl., as against an estimated withdrawal during the year of 224,000,000 barrels. Demand in terms of crude for 1940 was 632,000 bbl. per day as against 626,000 bbl. per day for 1939. Demand for gasoline was the same as in 1939, but the demand lor fuel oil increased 3.8 per cent. Compared with 1939, Japanese shipments decreased from 75,786 bbl, per day to 61,000 bbl. per day, but the balance of Pacific foreign shipments increased from 59,409 bbl. per day to 61,304. Total with-drawals from storage during the year will approximate 7,000,000 bbl., almost all of which is fuel oil. Drilling activity was slightly greater than in 1939 and accounted for 890 new producing wells as against 851 for 1939 (Table 3). Production averaged 611,900 bbl. per day as compared with 614.,842 bbl. per day for 1939. The productive acreage figure of the state was increased by 4000 through discoveries and extensions. New Discoveries Los Angeles Basin District Del Vdle Field.—Northwest of Newhall, where the first oil well in California was drilled, R. E. Havenstrite completed his Lincoln No. I well, flowing 390 bbl. of 50" gravity oil together with 7000 M CU. ft. of gas. Later the well was recompleted, after cutting off the gas, for 950 bbl. of 34" gravity oil. The type of structure from which this production is coming is a plunging anticline, complicated by faulting. The Lincoln No. I well uncovered approximately 180 ft. of net sand. This field contains a gas cap and its indicated productive area approximates 500 acres. An intensive wildcat drilling campaign is expected during this coming year in the district in the vicinity of the Del Valle field. Extensions and Deeper Sand Developments Los Ange1es Basin District Athens Field.—On the northwest plunge of the Athens structure, the Thorley Oil Co. completed its No. 12-1 well, flowing 250 bbl. of 3 2" gravity oil from a depth of 8097 ft. The area in which the well is located is complicated by faulting and it is impossible at this date to determine the importance of this deep-zone discovery.

Jan 1, 1941

By V. H. Whihelm

Since 1935 California has enjoyed a remarkable cycle of discovery, which has placed the state in a very satisfactory position in regard to oil reserves. Most ol the geophysical plays have been drilled and it is possible that new discoveries must be made by the application of careful geologic and stratigraphic studies. During 1940 only one new field was discovered, which, although not of major importance, may lead to additional discoveries. During the year, 113 wildcats were drilled. New discoveries, extensions and a reappraisal of discoveries made in 1939 will not approximate over 50,000,000 bbl., as against an estimated withdrawal during the year of 224,000,000 barrels. Demand in terms of crude for 1940 was 632,000 bbl. per day as against 626,000 bbl. per day for 1939. Demand for gasoline was the same as in 1939, but the demand lor fuel oil increased 3.8 per cent. Compared with 1939, Japanese shipments decreased from 75,786 bbl, per day to 61,000 bbl. per day, but the balance of Pacific foreign shipments increased from 59,409 bbl. per day to 61,304. Total with-drawals from storage during the year will approximate 7,000,000 bbl., almost all of which is fuel oil. Drilling activity was slightly greater than in 1939 and accounted for 890 new producing wells as against 851 for 1939 (Table 3). Production averaged 611,900 bbl. per day as compared with 614.,842 bbl. per day for 1939. The productive acreage figure of the state was increased by 4000 through discoveries and extensions. New Discoveries Los Angeles Basin District Del Vdle Field.—Northwest of Newhall, where the first oil well in California was drilled, R. E. Havenstrite completed his Lincoln No. I well, flowing 390 bbl. of 50" gravity oil together with 7000 M CU. ft. of gas. Later the well was recompleted, after cutting off the gas, for 950 bbl. of 34" gravity oil. The type of structure from which this production is coming is a plunging anticline, complicated by faulting. The Lincoln No. I well uncovered approximately 180 ft. of net sand. This field contains a gas cap and its indicated productive area approximates 500 acres. An intensive wildcat drilling campaign is expected during this coming year in the district in the vicinity of the Del Valle field. Extensions and Deeper Sand Developments Los Ange1es Basin District Athens Field.—On the northwest plunge of the Athens structure, the Thorley Oil Co. completed its No. 12-1 well, flowing 250 bbl. of 3 2" gravity oil from a depth of 8097 ft. The area in which the well is located is complicated by faulting and it is impossible at this date to determine the importance of this deep-zone discovery.

Jan 1, 1941

By Paul W. Zimmer, Carl E. Dutton

Iron ore in the Menominee district is mined from two iron-formations of middle Precambrian age. The older formation is present in the northeastern part; is composed mainly of hematite, magnetite, quartz, and minor silicates; and contains about 34 per cent iron. The rock has been so coarsened by meta- morphism that concentration of magnetite and hematite is feasib!e, and pellets containing more than 60 per cent iron are being produced. The older formation is also present in the southeastern part where it has 1:een only slightly metamorphosed. Ore containing more than 50 per cent iron was formerly mined from local residual concentrations of iron oxides from which silica had been sufficiently leached, or replaced by iron oxide, or affected by combinations of these processes. The younger iron-formation occurs in the western part of the district and, if unaltered, is interlayered siderite and chert. The ore in this area also contains more than 50 per cent iron and formed as local residual concentrations but in two stages. The siderite was converted to iron oxides (hematite and "limonite"), and silica was contemporaneously or subsequently removed by leaching, or replacement, or combinations of these processes.

Jan 1, 1968

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 M. Cross

INTRODUCTION The results of the Japanese dissective investigations have [l-4] transformed our understanding of how the blast furnace operates. These studies revealed an internal structure of the furnace burden with five main zones, as illustrated in Figure 1. In the granular zone the charged material retains its structure whereas in the cohesive zone the iron ore particles are at advanced stages of reduction and form a semi-molten mass with a relatively high flow resistance. In the active coke zone molten iron and slag flow through a matrix of loosely packed coke. The raceway is a relatively small void space generated by displacement of coke due to the hot blast momentum, whilst the hearth is packed with coke, slag and molten iron. [ ] It is now well appreciated that furnace control is largely achieved and maintained by using the burden charge distribution to determine the gas glow distribution within the furnace and, hence, the shape and extent of the cohesive zone. In fact, Wakayama et a1 [5] of Nippon Steel Corporation state that optimum furnace operation is synonomous with the formation of a desirable cohesive zone shape, which in turn is almost solely determined by the burden charge distribution and its mechanical properties [6]. Much of the development work on operating furnaces since the dissective investigations has been oriented towards the identification of external furnace measures which reliably predict the shape of the cohesive zone. Currently the most popular measures are top gas temperature, velocity and CO/CO, ratio profiles [5]. More recently pressure distributions as evaluated from a series of wall measurements down the height of the furnace are also being utilised [7] to identify the position and shape of the cohesive zone. A great deal of emphasis has been placed upon achieving a consistent quality in the burden charge materials, establishing a suitable set of operating conditions and only making changes when forced to, ie., the operation for some reason moves outside a desired operating range or the production requirements change. Operational control schemes based upon this philosophy (eg., Kawasaki's GO-STOP system [8]) have been remarkably successful at achieving both high production rates and relatively low fuel costs. Mathematical models have long been used as tools to assist in the analysis of the blast furnace process. Although, the models have been useful in post-operative analysis and for identifying trends, etc., they have not proved reliable for detailed design criteria or as the basis for effective control schemes. Such mathematical models have moved from simple statistical correlation, through overall and stagewise heat-and-mass balance calcu-

Jan 1, 1984

THE CHAIRMAN.- This meeting is under the auspices of the American Institute of Mining and Metallurgical Engineers, and I think the germ of the idea originated in the steel business. Last year there was a meeting of prominent people in the steel industry with the idea of getting together and discussing practical phases of their business, so that everybody could contribute and from that there might be benefit derived for the industry. Several months ago when Mr. Bain was in Salt Lake City, he and Mr. Oldright asked me what I, as an individual, thought of it. From that originated this idea of having the copper people come together to discuss reverberatory smelting and all its phases. In starting out, it seemed the best plan to ask members what particular subjects they wished to discuss first; that is, the ones that would be considered more important. We asked Mr. Oldright, or suggested sometime ago that the meeting be postponed until May because May is a lovely month in Salt Lake. There are a number of attractive features around the city. We have a number of smelters here and I think that probably the most of the benefit will be derived from talking in an informal way and visiting the various plants around. the valley. At any rate, speaking as a resident of Salt Lake, I am glad to see all of you gentlemen here, and hope you have an interesting and instructive time. The tentative list of subjects for discussion at this conference is as follows: Construction Walls, etc. Walls, proper design and thickness of brick for various types of charging. Bottoms, construction of. Binding steel, correct weight and arrangement, where thrust of arch should be taken. Refractory materials, feasibility of using different material in various parts of the furnace. Water jackets, where applicable. Should bricks be used inside of same. Gas space, proper design for, height of roof above bath, etc. Roof Shape of Roof, in hot zone and elsewhere, longitudinally. Construction of roof, in various zones, around openings.

Jan 1, 1930

R. F. MCELVENNY.- Over 20 years ago I went back East on a little tour of copper companies to see how copper was handled and fabricated, and I met a Mr. Bassett who took me through the Waterbury branche of the American Brass Co. I have not seen this gentleman for 20 years, but I have a letter from him that I would like to read to you. 'The American Brass Co. Waterbury, Conn. May 19, 1930. To the-Salt Lake City Conference on Reverberatory Smelting Practice: Through the courtesy of Mr. Scott Turner, Director of the U. S. Bureau of Mines, Mr. G. L. Oldright has been temporarily released from his regular duties to act as your secretary. We have asked him and Mr. McElvenny to make the necessary preliminary arrangements and to present to you at the opening session the greetings of the officers and' directors of the Institute. I am very glad that it has been possible for you to come together under the auspices of the Institute and that the acceptance of our invitation has been so very unanimous. Such an acceptance of the invitation to this meeting indicates your interest in getting together for an exchange of technical data and ideas. We anticipate that this meeting will be of real service to the smelting industry through your open discussion and exchange of ideas, and we sincerely hope that you will form an organization which will arrange for future meetings of a similar nature. While it probably may not be desirable to. distribute the minutes of this conference except to the members who take part in it, we hope that later the Institute publications may be enriched by such matter as you think it desirable to have published; and also, that some of you may be able to offer technical papers for the Institute publications. I hope that you will find a permanent organization desirable and trust that it will be possible for you to form such an organization so that conferences may be regularly called. We hope that you can make use of the Institute organization and that we can be of real service to your industry. With best wishes for your success in this undertaking, I am Most cordially yours, W. H. Bassett, President.

Jan 1, 1930