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By F. Julius Fohs

A comparative balance sheet for 1924 and 1925 follows: 1925 1924 Barrels Barrels Gross production..................................... 763,000,000 714,000,000 Imports of crude oil.................................. 62,005,000 77,776,000 Imports of refined oil................................. 16,263,000 16,470,000 Total......................................... 841,268,000 808,246,000 Surplus supply....................................... 25,000,000 30,246,000 Indicated domestic demand........................... 704,465,000 667,000,000 Exports crude oil.................................... 13,353,000 17,913,000 Exports of refined oil................................. 98,450,000 93,087,000 Total......................................... 816,268,000 778,000,000 Stocks, Dec. 31 (crude 410,654,000).................... 538,000,000 513,000,000 These figures show an increase of 49,000,000 bbl. in production and little change in oil imported; 37,000,000 bbl. greater apparent domestic consumption and actually greater utility in consumption, due to increased gasoline production by cracking; and 1,000,000 bbl. more crude and refined oil exported in 1925 than 1924, representing a total apparent increased demand of 38,000,000 bbl. The excess of demand over supply in 1925 was 25,000,000 bbl. The increase of stocks over those at the close of 1924 was 25,000,000 bbl. Of the stocks on hand at the close of 1925, about 82,000,000 bbl. in California were not refinable. Imports from Mexico and South America It would not be surprising if, by 1930, we should actually welcome the imports from Mexico, Venezuela, Colombia, Peru, Argentina and Trinidad. If these States produce 155,000,000 bbl. and use, perhaps, 30,000,-

Jan 1, 1927

By H. N. Herrick

The flow characteristics of drilling muds, as described in this paper, and the method given for solving problems relating to the flow of these muds through pipe and accessory equipment, are based on a conception that drilling muds are plastic solids like paints or greases; not liquids. The data presented in this report have been obtained from studies of California muds, chiefly those used in the Kettleman Hills field, by the Producing Department of the Standard Oil Company of California. Although no claim of scientific exactness is made for the formulas and diagrams, since the data upon which they are based are not complete even for California muds, the method has proved to be a convenient means for estimating, closely enough for practical purposes, the pressures required to force muds at various rates through pipe systems in which-they are handled. Certain approximations have been made to simplify the procedures so that they can be used easily in the field. Viscosity and Shearing Strength of Mud For the purpose of this discussion a plastic solid is defined as a material in which no deformation or flow takes place when the material is subjected to shearing forces, until the shearing force reaches a value called the "yield point." With liquids, the smallest force will produce continuous deformation; that is, the yield point of liquids is zero. The difference between true liquids and muds is illustrated in Fig. 1, which shows rates of flow through a small tube under different pressures. The flow rate of the liquids is directly proportional to the pressure and that of the muds is not. The behavior of drilling mud does not conform in every detail with the definition of a plastic solid as given, because mud actually flows slightly at pressures below its yield point. However, for practical purposes the definition describes the condition adequately and has the advantage of simplicity. In order to make mud-flow calculations based on the theory that mud is a plastic solid, it is necessary to know the "yield point" of the mud, which hereinafter is defined by equation 1 under the caption "Viscosity

Jan 1, 1932

By H. M. Chance

The present value of most coal properties resides largely in the cod remaining to be mined, which thus constitutes the most important asset. The object of this paper is to discuss methods commonly used in computing the value of minable coal. To distinguish clearly between such coal values and the values of other property, the several kinds of property values should be divided into classes; so as to avoid the unintentional omission of items of importance. Value op Coal Reserves Judicial decisions prescribe, and appraisers commonly accept, current sales value as the preferred means for determining the value of transferable property. With few exceptions a property is worth the sum that can be realized from its sale by a willing seller to a willing buyer, a sale in which compulsion urges neither party, and between whom there is no community of interest to fix a value; or it is worth at least as much as a responsible buyer will offer for it. Actual sales of like property or bids from responsible buyers for the property, or for substantially like property, are the best established methods for determining values. Only in the absence of such sales or bids can valuations by other methods be entertained, and only for reasons of weight can sales values be set aside. Valuation Based on Royalties Sales of coal in the ground, as customarily carried out through lease under royalty agreements, are therefore the most trustworthy means available for determining the value of coal reserves. The constantly rising value of high-grade coal in the United States can most readily be shown by the increasing royalties per ton that can be obtained for such coals under leasehold. The rising value of land containing such coal can also, of course, be proven by the price at which such properties are actually sold as compared with prices obtainable for lands containing coal of the same grade in the past. It is exceedingly difficult, however, to establish values by the prices paid for coal

Jan 1, 1927

By J. F. Gallie

From the standpoint of exploration and new discoveries, South Arkansas had a discouraging year in 1944. In January there were 73 untested drilling blocks, and 60 additions were made during the year. Of the total, 65 were condemned by dry holes on or adjacent to them, while 5 proved productive. The latter resulted in the discovery of the Salem Church, Calhoun Wilks, and Strong fields, and the extension of the Village field to the southeast. The year ended with 63 untested blocks, 41 of which were scheduled for tests to the Smackover lime, the state's deepest oil-producing formation. Geophysical activity in 1944 totaled 164 crew weeks, of which 110 were seismic, 43 gravity, and 11 radioactive (Fig. I), in contrast with 674 crew weeks reported for 1943, of, which 563 were seismic and in gravity, Five seismograph and two gravity crews were engaged in exploration in South Arkansas during January 1944. but only two seismograph crews were working there at the end of the year. In addition, exploratory core drills were used for a total of 38 weeks during the year. The year's few discoveries, none of which is considered as having added appreciably to state reserves, were the meager results obtained in the drilling of 62 wildcat wells 2000 ft. or deeper. Of this total (a detail of which appears in Table 2), 42 were drilled to the Smack-over lime or below, The average depth of the 62 wells was 5384 ft., as compared with 4992 ft. in the preceding year, while the average depth of the 42 wildcats in the lime was 5913 ft. in 1944. Fig. 2 has been prepared to show all , wells penetrating to the Reynolds oölitic lime. The 1944 dry holes are circled lightly, while discoveries are heavily circled and shown as producers. Smackover lime fields, producing from the Reynolds oolitic lime member, are indicated in black, and the locations of dry wildcat wells drilled prior to 1944 are also shown. Table 3 provides a listing of all Smackover lime wells drilled through the end of 1944. Production for the year was slightly more than in 1943, totaling 29,282,747 bbl., as compared with 27,521,943 bbl. for the preceding year. The increase was 1,760,804 bbl., or 6.4 per cent, bringing production to a peak exceeded only in the 1923 to 1928 period of flush production from the older shallow fields, principally Smackover. The increase was largely attributable to additional development in the Dorcheat-Macedonia, Atlanta, Fouke, Stephens-Smart, Haynesville, and Village fields, little production deriving from 1944 discoveries. These six fields accounted for loo of the 122 field wells drilled during the year. Annual and cumulative production for the producing life of the state are presented graphically in Fig. 3. Fig. 6 has been prepared by the author to show the producing ages and present known productive limits of all fields in South Arkansas. Production data, as usual, are assembled in Table 2, and provide a further breakdown of producing formations in the individual fields.

Jan 1, 1945

By Isaac H. Odell, Arthur W. Hixson, Lincoln T. Work

Although a few engineers have recognized the problem of the mechanism of filtration it has never been studied in a quantitative way. A background for a better understanding will be afforded by a survey of certain fundamental principles of filtration. In recent years, authorities have become practically unanimous in saying that the actual filtering should be done, not by the cloth itself, but by a layer of solid particles deposited upon it. Thus, a cloth may be used in which the openings are considerably larger than the particles to be filtered, provided that groups of particles form an arch or bridge over each opening. This can be accomplished if the initial pressure is so low that the arch will not be broken while it is still thin. According to Wright,' the chief advantage of this method of filtration is that the open-weave cloth does not become clogged as easily as does one of closer weave, where the fine particles often work their way into the interior of the cloth and become caught there. If the character of the material to be filtered is such that it will not form a good film, then it becomes advantageous to use "filter aids" for pre-coating the cloth with a desirable layer of solids, and the coating need be only of a very slight thickness for good results. Until the film is formed, the first runnings of the filtrate may be cloudy, often necessitating refiltering this portion. A factor which has considerable effect on the performance of filters is the concentration of solids in the pulp. According to Wright, a high concentration of solids gives a porous cake, since the flow is then slower than with a thin pulp. The porosity of the cake is also affected by the pressure: a high initial pressure tends to compact the cake, and the same effect results from fluctuations of pressure. In his studies of the relation between pore size and particle size, Hatschek2 observed that the particles in a pulp tend to arrange themselves with maximum cross-section parallel to the direction of flow and that this is more marked at the higher vclocfiies. Thus, at high pressure and high velocity, a certain pulp

Jan 1, 1926

By C. F. Smart

SINCE their comparatively recent development, the alloys of cadmium with silver and copper or nickel, and of cadmium with nickel alone, have been used somewhat extensively as liners for connecting rod bearings and main bearings of internal-combustion engines. In applications where, owing to high bearing loads and elevated operating temperatures, the life of bearings made from tin-base or lead-base alloys has been undesirably short, cadmium alloys have demonstrated considerable advantage. In applications where, because of deflection of the crankshaft or bearing supports, copper-lead bearing metals have resulted in scored shafts, cadmium alloys have been operated successfully. The somewhat serious drawback to these alloys in bearing service has been that they, in common with copper-lead and certain lead alloys, are susceptible to corrosion in the presence of lubricants containing organic acids. These acids may be fatty acids (such as oleic acid) derived from animal or vegetable oils that sometimes have been compounded with engine lubricants, or they may be compounds of an acid nature developed by the oxidation of some petroleum oils under operating conditions. The result of such acid attack on bearings is illustrated by the photograph, Fig. 1. The petroleum oils that are most readily oxidized to a corrosive condi-tion, and the operating conditions under which such oxidation most readily occurs, are now rather well known among the technical organiza-tions of both the petroleum and automotive industries. While means have been developed for inhibiting petroleum oils against such acid formation, the knowledge that this condition may be encountered has been a factor in restricting the wider use of cadmium alloys as engine bearings. It has appeared, therefore, that their value and use would be enhanced if they could be made corrosion-resistant to a degree compatible with the most severe operating requirements.

Jan 1, 1938

By J. F. McLaughlin

The installation of the Chance flotation system for the preparation of anthracite demonstrated the need for some means by which the specific gravity of the fluid mass in the separating cone could be determined with a fair degree of accuracy. The means used (with the original cones) was a set of wooden balls attached to ropes or chains, each with a different specific gravity. In the Northern Anthracite field, where the cones are generally operated with the specific gravity at 1.65, these gravity balls are provided with a range of 1.6, 1.65, 1.7 and 1.75. The operator of the cone from time to time would place one or more of these balls in the cone and estimate its specific gravity by the action of the balls. The margin of error with this system was very great, because there was the possibility that the test ball might be held in suspension and carried around by material floating beneath the surface of the cone in what is known as "island " formation—a formation resulting from a low sand line in the separating cone. The inaccuracy of this system of determination of specific gravity was indicated also by periodic tests of the final refuse bank, which showed excessive losses of coal to the refuse. Further evidence of the unsatisfactory operation of the cone was the uneven appearance of the market product, which caused spasmodic condemnation. Maintenance of Even Preparation With the critical market condition of today, it is essential that the preparation units operate consistently to maintain an even preparation. If a plant wishes to maintain a 1.65 specific gravity preparation, which means that all material of a specific gravity greater than 1.65 is classed as "reject," if the specific gravity of the fluid mass runs to 1.70, the market product will not be satisfactory; or if the specific gravity of the fluid mass is 1.60, the market product will be entirely satisfactory but the losses at the slate ends will be excessive. The desired specific gravity of the fluid mass in the Chance cone is maintained by agitating the sand within the separating cone by means

Jan 1, 1931

By George K. Burgess

The suggestion has often been made that it would be highly desirable, at least for certain grades of steel, to be able to control more certainly, by pyrometric measurement or otherwise, the temperatures of the operation of the open-hearth and other furnaces used in the manufacture of steel and iron. That the properties of the ingot and finally of the finished steel product are intimately related to the final temperatures attained by the metal in the furnace and to the temperature of casting, has been recognized by metallurgists for a long time, and this question has been very thoroughly treated, especially by Prof. Henry M. Howe, and by A. W. and H. Brearley.1 It is the object of this paper to demonstrate that in so far as casting temperatures of furnaces, steel ingots, and similar operations involving the temperatures of streams of iron and steel are concerned, well-known pyrometric methods may be easily applied—if certain recently determined corrections are made and precautions taken—with a relatively high degree of accuracy. Greater but not insurmountable difficulties will be encountered in the case of open-hearth furnace temperatures, while for those of the converter type a ready solution does not seem practicable. It appears that certain essential data have always been lacking in reporting observations such as those of Le Chatelier in 1892. Thus the correction to be applied for the characteristic radiation—or emissivity— has hitherto not been adequately taken into account nor the limitations of the several possible pyrometric methods clearly recognized. In view of the fact that in open-hearth practice the temperature to be measured in the furnace itself, in the stream of metal and slag and in the teeming into molds or ingots is usually above 1,500" C. (2,700" F.)

Jan 1, 1917

By C. E. Lesher

Two processes for agglomerating fine sized ores with low temperature coke are described. One process (Orcarb) agglomerates ores with limited amounts of carbon; the other (ore-carbon pellets) pelletizes fine sized ores, using low temperature cokes as the binder. Data are presented on the products obtained when taconite, magnetite, and hematite concentrates and several titanium oxide ores were used. Reduction of finely divided oxide ores has long been a major metallurgical problem. Various methods of agglomerating, notably briquetting, sintering, nodulizing, and pelletizing, have been developed and are in industrial use. Carbon is the usual reducing agent for oxide ores and attempts have been made to agglomerate fine ores with coking coal in order to get the metallurgical advantages of intimate contact and increased particle sizes suitable for subsequent smelting or reduction.

Oct 1, 1955

By C. W. Washburne

Recently, Messrs, Mills and Wells1 published a thorough chemical study of the waters associated with oil in parts of the Pennsylvania, Ohio, and West Virginia region. Many of their conclusions are of general application and the writer wishes to discuss some of these. Messrs. Mills and Wells show that the composition of the deep brines oi the Appalachian fields is such as would be produced by the evaporation of sea water and the precipitation of sodium chloride, combined with reactions with hydrocarbons and other substances. The brines are altered, also, by considerable mixing with meteoric water. They give good reasons for believing that the concentration of the brines was produced by evaporation in the rock pores induced by migrating gas, much of which probably escaped to the surface of the ground. This hypothesis was considered by the writer in a former paperJ2 in which main stress was laid on a second hypothesis, that the excess of chlorine in the deep brines may have been due to the entrance of solutions rich in magnesium and calcium chloride which ascended from a deep, possibly intratellurie, source. Messrs. Mills and Wells present good arguments for the first hypothesis. Underground evaporation by ascending gases probably will be accepted as the best available explanation of the concentration and composition of deep well waters. They have not considered the possibility that salt waters in deep sands may be concentrated by the diffusion of water vapor through gas into shale. The writer has given reasons3 for believing that capillary forces concentrate gas and oil in the larger openings of rock, such as the pores of sandstones embedded in shale. The gas underground must be nearly saturated with water vapor at all times, because it always is in contact with the interstitial water of enclosing shales and of the sandstone. Experimental studies of soil moisture have shown that approxi-

Jan 1, 1921

By J. L. McK. Yardley

There are two general classes of problems in connection with electric furnaces. First, those relating to the best utilization of the electrical power inside the furnace; second, those connected with the bringing of the electrical power to the point where it is to be utilized. Referring particularly to the latter class of problems, many calculations have been made, covering a wide variety of furnaces, to check the electrical capacity and power factor found from test. The following analysis, made for the purpose of determining the maximum capacity and approximate performance of a new furnace, to operate at 160 volts on a 60-cycle circuit, may be of interest. The first characteristic necessary to determine is the inductance, since this is the factor that limits the amount of power which can be put into the furnace. Inductance is calculated from the dimensions of the furnace, according to formulas of the U. S. Bureau of Standardsll as follows. Formula 99, for mutual inductance, is: M = 2l [log 2l/d-1 +d/l] Formula 103, for self-inductance, is: Both of these formulas are approximations which are nearly correct when 1 is great compared to d or R. 1 = length of circuit, in centimeters, d = separation between the conductors, in centimeters, R = geometric mean radius of conductors. For a circular tube, R = the radius of the circle. For a solid circular conductor, R = 0.7788 X the radius of the conductor. For a rectangular conductor, R = 0.2235 X (a + b), a being the length, and b being the width of the rectangle. To calculate the inductance of a three-phase circuit, it is customary to figure the inductance of one leg. In circuits where the three conductors

Jan 1, 1920

By C. G. Dunn

IT is well known that plastic deformation alters many of the properties of a metal and subsequent heat-treatment partially or completely restores these properties.1 In the deformed or strained state, the metal is unstable and tends to change toward a condition called a "strain-free state." The transformation occurs through recovery, recrystallization, and grain growth-processes that may take place singly or in combination. The distortion of the lattice of an individual grain of a metal in a state of strain may be rather complex in nature, because plastic deformation produces: (I) dislocations within mosaic blocks; (2) elastic variations of the lattice spacings; and (3) gross alterations throughout the lattice, especially along slip planes, along composition planes between a grain and its mechanical twins, and along boundaries of deformation bands. These gross alterations are of the nature of bent planes or rotated regions of the crystal lattice and are revealed by a spread in the orientation of the grain. Although we cannot describe these strains and their formation accurately because of insufficient knowledge, we can, nevertheless, use the information as well as possible to obtain a better understanding of recovery processes. In recovery, the lattice of a grain is not made anew as it is in recrystallization, but is improved or mended in such a way that the basic structure remains unaltered. Until recently observations were that recovery produced no marked changes in the shapes of spots in Laue diffraction patterns, whereas recrystallization did, but now it is known for silicon ferrite2 that Laue spots may become quite sharp entirely through recovery. Consequently, the shape of Laue spots alone would not be a suitable test to distinguish between recovery and recrystallization. There is considerable evidence that the micro- structure usually does not change visibly during recovery. Absence of a visible change in the microstructure, therefore, provides a sufficient test of recovery in many cases. However, including this observation in a definition of recovery as a necessary condition (this is usually done) is unfortunate, because recovery may, as will become evident later, produce new grain boundaries that are visible not only in the microstructure but also in the macrostructure. For the present, therefore, let us say that a necessary condition for a process to be one of recovery is that the principal orientation or orientations of a deformed grain be essentially unchanged throughout the transformation toward the strain-free state. Several transformations may occur that fulfill this condition, and the nature of the distortion in a grain indicates what these must be if the lattice is to be mended in part or fully. Consequently, it will be convenient as well as

Jan 1, 1946

By Hans Allenius, R. T. Hukki

This paper describes in quantitative terms the effect of sharpness of classification on the performance of the closed grinding circuit. The analysis is based on a large number of laboratory experiments designed to simulate the two most common industrial closed grinding systems. The experimental results show quantitatively the degree of improvement achievable by more efficient classification. In an earlier paper1 the senior author has presented a trend showing qualitative analysis of mill and classifier performance in tile closed grinding circuit. According to this analysis, the master key to a major improvement appeared to be effective removal of finished fine material from the classifier sands, or in other words, improved sharpness of classification, leading simultaneously to a substantial reduction of the circulating load. One purpose of this paper is to present the results of a quantitative investigation of the closed grinding circuit. Another is to set forth the essential pertinent variables revealed by the quantitative experiments carried out by the junior author. In the two most common systems of closed-circuit grinding, (1) feed to the circuit is introduced into the grinding unit, normally the ball mill, operating in closed circuit with the classifier; or (2) feed to the grinding circuit is introduced into the primary grinding unit, normally the rod mill, discharging into the classifier in closed circuit with the secondary grinding unit, normally the ball mill. In the following discussion, these two systems are analyzed separately in the indicated order. BALL MILL - CLASSIFIER CIRCUIT The Test Apparatus and Procedure: The test appara- tus included: (1) a F 195 mm x 220 mm laboratory ball mill rotated at a speed 77% of the theoretical critical speed, and a 7-kg batch of F 20 mm-F 50 mm steel balls; (2) a conventional 65-mesh test sieve and a Ro-Tap sieve shaker serving as a classifier; and (3) a Permaran instrument manufactured by Outo-kumpu Co. for surface area determinations by the permeability method. As no continuous closed-circuit experiments could be brought about on a laboratory scale, the process was broken down into alternating grinding and sizing steps in such a way that the new feed plus the returning sands always formed a batch of 1000 gm. For each selected grinding period and for each selected sharpness of classification the basic steps were repeated six times. Steady-state conditions were then reached. Crystalline vein quartz was used as a test material. Feed to the process consisted of -10-mesh fraction of this quartz crushed in rolls. This fraction included 15% of-65-mesh material. Experimental Results: The general flowsheet is shown in Fig. 1. Table I gives the essential data obtained representing steady-state conditions under the indicated set of variables. The table is based on 110 grinding experiments, 440 screen analyses and an equal number of specific surface area determinations. Fig. 2 shows the relationship between the cumulative net energy consumption and the cumulative number of mill rotations as evaluated by separate experiments. Note that this relationship is not linear but is instead represented by a slight curve. The data given in Table I are presented in graphical form as follows: Fig. 3 shows the produced -65-mesh material in grams per minute vs. time of grinding in minutes; the sharpnesses of classification at 65 mesh were 100%, 75% and 50%. It is clearly indicated that the highest-capacity figures call for relatively short grinding times and for the sharpest possible classification. Fig. 4 presents the specific surface area on the final -65-mesh product in square centimeters per gm vs. time of grinding in minutes. In conventional mineral dressing processes, a final product characterized

Jan 1, 1969

By R. V. Norris

It was stated in a former paper1 that an intensive study of anthracite costs was being made by the engineers of the United States Fuel Administration. The results of this study are now available and are offered as a supplement to the former paper. Anthracite costs as reported for the 6-months period, December, 1917, to May, 1918, inclusive, as compiled by the Federal Trade Commission, were used as a base, and charts similar to those described in the former paper were made for the standard white ash anthracite and for red ash and Lykens valley coals. Adjustments The adjustments of cost from a reported to a price-fixing basis, as described for the bituminous methods, were applied but showed only minor adjustments as necessary. The great spread in anthracite prices on the varyingsizes, which for the 6-mo. period under review ranged in average from $5.244 for nut to $2.074 for barley coal, makes the question of the percentage of sizes produced at the different collieries a vital one. The realization with the same prices for each size must be within very wide limits, when it is considered that the percentage of prepared coal reported from different collieries varied from over 80 per cent. to below 30 per cent. for fresh-mined coal. Hence, as the spread in prices for the various sizes must be predicated on some percentage, it is essential to find some method of adjustment to allow for this variation. The logical method of adjustment is to calculate actual costs to costs as of the standard percentage of sizes, so that the margin between the adjusted costs and the average realization shall be the actual margin for each colliery between its actual costs and actual realization due to its particular percentage of sizes. As a base for realization the actual percentage of sizes for fresh-mined coal for the 6-mo. period was adopted. This percentage is given in Table 1.

Jan 1, 1920

By Henry Gross

RECENTLY, areas of abnormal rock pressure have been drilled on the Gulf Coast of the United States. These pressures may be caused by the recent and pronounced raising of some of the structures without loss of the formation pressure that existed when the reservoir was developing and the producing sand much more deeply buried. It is possible also that a permeable fissure may connect a shallow accumulation of gas with the gas cap of a much deeper reservoir of oil, gas and water. The pressures are so great that dependence on blowout-prevention equipment alone is hazardous to life and property. Fortunately, wells with excessive casing-head pressures, such as the Stanolind Oates No. 1 of the South Houston field, an 8700-ft. gas well with 6000 lb. per sq. in., and the near-by Stanolind Candelari No. 1, and 8100-ft. gas well with 5000 lb. per sq. in., have not blown out and cratered. A case is on record of drill pipe in a, well in Harris County, Texas, (Oates No. 1) rotating for 8 hr. through blowout-prevention rants holding a back pressure of 2900 1b. per sq. in. at the casinghead after the mud was altered by salt-water intrusion. Such conditions warrant the use of extremely heavy muds having low viscosity, made from galena (PbS) or specially prepared mixtures of hematite (Fe203) and galena suspended by bentonite. In some Gulf Coast wells, sodium silicate mixed with concentrated brine is used to drill through heaving shale formations. Such a fluid inhibits heaving remarkably, but it is expensive and costs as much as $10 per barrel. Barite has been used to weight this mixture. However, this mineral too rapidly increased an already excessive viscosity and it was thought that galena might be better for weighting such drilling fluid. The operator was anxious to try the latter, but none was available in the district.

Jan 1, 1938

By John B. Dilwoth

This paper treats primarily of the valuation of developed coal properties by the method of capitalizing their estimated average future earnings. However, reference is also made to valuations of undeveloped coal lands and to various methods of appraisal other than by future earnings. Fundamental Valuation Principles Before discussing in detail coal property valuations, a few statements bearing on the general subject will be made to present certain of the writer's views on the question as a whole. 1. A certain property at a given time has but one true value. This is not universally admitted. The appraiser rather frequently finds that a coal owner has in mind three valuations for his holdings; one, the figure at which he feels they should be appraised for taxation purposes; another, the much higher one that should be used if a loan is to be negotiated on the property; and a third, intermediate between the other two, the price for which he would be willing to dispose of his holdings were they for sale. The last is usually nearest to the true value, and because this is so the statement is generally accepted that the fair value of such a property is the price arrived at by negotiation between a willing seller and a willing buyer who are otherwise disinterested. 2. Notwithstanding the foregoing, it is only very generally and approximately true that the proper measure of the value of a given developed' coal acreage is the unit or per-acre price for which one or more bodies of similar coal in the same district have been sold recently. To give a few reasons why such a measure of value can not be strictly applied, it may be noted: a. That sales are often forced by circumstances at times when the coal business is depressed and buyers can be found only for properties that are offered at figures far below their true value. b. That conversely, during periods of unusual prosperity, abnormally high prices are paid. Such conditions obtained several years ago when coal brokers, with very profitable contracts but no sure source of supply, were bidding against inexperienced or shortsighted operators for proper-

Jan 1, 1928

By James L. Poole

INTRODUCTION Companies in the mining industry are subjected at times to currency exchange rate risks and interest rate risks. The former occurs any time a firm deals in more than one currency. The latter occurs anytime a firm is financing itself with borrowings that have a floating interest rate (although a fixed rate can be a problem at times). FOREIGN EXCHANGE RISKS There are two general reasons why exchange rate risks (FX risk) can occur: First, a firm may be building a mine or plant in another country where financing for the plan is denominated in funds other than the country hosting the plant. For example, if a Canadian firm is building a smelter in another country which is being financed with Canadian dollars, the C$100 million for labor, which must be paid in the local currency, has subjected the firm to a C$100 million FX exposure risk. If after the cost estimates were made the local currency appreciates 30% against the Canadian dollar, the cost of labor has increased to C$130 million. (Of course, the local currency could also devalue during this period making the labor cost component less than estimated.) The other reason exchange rate risk arises is due to the fact that the costs of production in one country producing minerals may be incurred in one currency while the production is sold in another currency, such as coal being exported from Canada to Japan under contracts denominated in Yen. In this example, the Canadian firm is exporting coal to Japan and being paid in yen in 30 days at a contract price of 100 Y per ton. Furthermore, assume that the mining firm anticipates a depreciation of the yen against the Canadian dollar of 5% in the next 30 days. Therefore, the mining firm stands to lose 5% of the value of its shipment in a month's time not including carrying costs. In both cases, the mining company risks an adverse change in the exchange rate, that is, the currency the company holds may decrease in value relative to the other currency. There are a number of ways to mitigate the exposure to foreign exchange which can be utilized by the mining company. Optimally, a company should try to match all their inflows and all their outflows in the same currency. For example, if a Canadian firm has mining costs and debt service costs both denominated in Canadian dollars then 100% of their receipts would need to be in Canadian dollars. If a Canadian firm has 70% of its cash outflows in Canadian dollars and 30% of its cash outflow in American dollars in the form of a loan amortization then their receipts would need to be 70% in Canadian dollars and 30% in U.S. dollars. This general principle of matching cash receipts and cash costs in the same currency works fine in a perfect world but what of the real world when these cannot be matched? In actual practice, however, the financial markets have developed a number of ways in which foreign exchange risks can he managed or reduced. FORWARD MARKETS One method is to use the forward markets which are made on a world-wide basis by the commerical banks for foreign exchange. If a firm wanted to lock in the current exchange rate for the receipt of a foreign currency at some point in the future, they could do so by contracting on the forward market with a bank selling that foreign currency at the current rate at the future date. For example, assume that a Canadian firm is exporting coal to Japan which would pay yen in 90 days. If a firm wanted to lock in today's exchange rate they could contract with a bank to sell on the forward market yen in 90 days. When the yen was received the contract would be executed by selling the yen to the bank and receiving the previously agreed upon number of Canadian dollars. Generally speaking, the forward market can be used to sell forward about 12 months. The costs of selling (or buying) forward

Jan 1, 1985

By W. T. Allan

Raw bituminous coal has been in general use as a blast-furnace fuel in Scotland for the last century, and although its use has now been largely abandoned and it has been replaced by coke in the majority of the few furnaces which are at present in blast in this country, coal-smelted pig iron is not yet a thing of the past; it is still being produced and marketed in competition with the more cheaply smelted product of the coke-fired furnace. Various factors have influenced this change in practice; the once plentiful deposits of coal of a suitable nature for the blast furnace are now not so easily obtainable; native blackband and clayband ironstones which are easily smelted in the coal-fired blast furnace, although still far from being exhausted, are not available except at a cost that is somewhat higher than that of imported ores, making them unattractive to the ironmaster that is compelled by circumstances to smelt his iron at the lowest possible cost. Within the last 15 years overproduction of synthetic nitrogen has led to progressive reductions in the price of sulphate of ammonia, the recovery of which together with the other by-products before that time materially assisted in reducing the working costs of the coal-fired furnace. Now the sale of the by-products recovered yields a diminished profit. When the cost of the product is the only consideration the small, s1ow-smelting, coal-fired blast furnace cannot compare with its large, modern, coke-fired competitor. Other considerations do not by any means all support the same side of the argument. In the smelting of pig iron to be used in the manufacture of steel where the quality of the final product depends so largely upon the control of the conversion process and so much less upon the physical quality of the pig iron used, the physical properties of the pig iron do not exert any appreciable influence upon the quality of the steel produced, therefore the methods employed in the smelting of the pig iron matter but little so long as the requisite chemical composition is reached. On the other hand, in ironfounding where the simple melting of the pig iron, which is the only treatment it receives before being cast into its final form, does little or nothing to modify its original charac-

Jan 1, 1937

By Edwin M. Chance

During the past 10 years, the safe and efficient lighting of the coal mines of this country has received an ever-increasing amount of attention. Several States have passed laws attempting to regulate the type of lamp to be used and the nature of the fuel to be burned, and the mining departments of coal-mining States have generally shown a keen and intelligent interest in this subject. The passage of the recent Employers' Liability Act in Pennsylvania has made it necessary for many coal-mining companies to take out liability insurance, and the companies underwriting such insurance have made it desirable for the insured to permit the use of none but illuminants of established worth. While these conditions have not obtained for a sufficient length of time to permit the statement that the illumination of coal mines by portable lamps has been standardized, still, considerable progress has been made and the direction of future practice in this branch of coal-mining technology is very evident. Under these conditions it seemed that a review of the methods now used in coalmine illumination, together with a brief consideration of the principles underlying these methods, might be of some interest. Miners' lamps may be divided into three classes: The open light, the electric cap lamp, and the flame safety lamp. It will be desirable to consider each of these classes separately, as each has properties peculiar to itself and one class is hardly comparable with another. In this country, without question, the open light is the most generally used of all miners' lamps. This fact is explained by the relative freedom of a large proportion of our mines from gaseous conditions, and by the admirable systems of ventilation installed in those that show a tendency toward such conditions. In the metal mines, the miner's candle has had and still has considerable vogue. Because of the small amount of ventilation usually supplied in metal mines, the freedom of the candle from any tendency to produce noxious gases or offensive odors, and the small amount of air it consumes, are valuable assets, while, because of the light color of the rocks in which workings are driven, the meager light is not a serious handicap.

Jan 1, 1918

By W. W. Anderson

WEBSTER'S dictionary gives the following definition for "efficiency": "Effective operation as measured by a comparison of actual and possible results." Engineers think of this definition in terms of the ratio of output to input, and since they learn early in their careers that output cannot be greater than input, they usually consider a machine to be 100 pct efficient if it operates perfectly, and to be 0 pct efficient if it performs no function at all. Hence, values of efficiency between 0 and 100 pct reflect how well or how poorly a machine has performed; and any method of calculation for determining efficiency that does not show 0 pct when no function has been performed, and 100 pct when a perfect job has been done, is looked upon with skepticism. The literature on performance of coal cleaning equipment contains many references to efficiency of performance, but there is no unanimous agreement among the authors as to how the efficiency should be determined. Numerous methods of calculation have been proposed from time to time, most of which attempt to fulfill the definition of efficiency by comparing output to input, using float and sink data or some other characteristic, such as dry ash content, as a measure. However, to the best of our knowledge, none of the methods advocated in the past meets the requirements of a practical engineer in judging cleaning plant performance, because the formulas previously advocated do not confine numerical values of efficiency between 0 and 100 pct, and the literature does not contain an explanation of the meaning of the formulas under various conditions of operation. Therefore, the following formula, based on Yancey's concept of misplaced material,' is proposed as a measure of efficiency which will conform with the requirement that the values of efficiency must be confined between 0 and 100 pct: Quantitative Efficiency = 100.0 — (pct wt sink* in cleaned coal + pct wt float* in refuse)t • At gravity of separation effected by cleaning equipment. t Total product basis of the size of material under study. It will be noted from this formula that an actual separation between cleaned coal and refuse must be effected by the cleaning equipment before the formula can be used; also, that improperly distributed material in the products must be determined at the gravity of separation, rather than at some arbitrary test gravity. It will further be noted from this formula that the weight of cleaned coal recovered and the weight of refuse rejected by the equipment have their proper influence, because the sink in the cleaned coal and the float in the refuse are expressed in the equation as a per cent weight of the total products of a definite size discharged from the plant. This formula has one other important characteristic, in that it requires no knowledge of the feed to the cleaning unit. Comparison of data on the products from a cleaning unit with the feed to the unit can lead to many worthwhile conclusions. but not in regard to the efficiency of separation effected by the equipment. The reason for this is that mechanical fracture of many pieces of the feed occurs during the cleaning process; and in some processes crushers are deliberately incorporated in the flow to produce size degradation to free impurities from cleaned coal, thereby altering the washability characteristics of the material while in process. When such size degradation occurs in a cleaning process, it is quite possible that this crushing will result in a reduction in ash content in the finer sizes of cleaned coal when compared with the raw coal feed, even though no true separation has been effected. This is due to the fact that the finer sizes have been "sweetened" by the crushing of cleaned coal from some coarser size. Many formulas advocated in the past show high cleaning efficiencies

Jan 1, 1951