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By Myrick N. Bolles

The concentration of gold and silver in mattes low in copper, and the subsequent separation and recovery of either or both of these metals, is a question the satisfactory solution of which has long vexed metallurgists. It covers a broad and important department of metallurgical science and brings in its train a series of attendant problems continuing from the initial operations of concentration to the final recovery of " values."

Jan 1, 1905

By G. E. Pellissier, C. W. Mason

Tin has long been cited as offering a classic example of polymorphism, second in repute only to the allotropy of sulphul.. The notorious "tin disease," which Cohenl has studied so exhaustively in terms of the enantiotropic transformation of tetragonal white P tin to cubic gray a tin, has apparently encouraged the expectation that one or more additional polymorphic modifications might exist. The search for confirnmntion of this idea has, as might be anticipated, led to the accumulation of a body of miscellaneous evidence, much of which would probably never have been sought, or taken seriously even by its discoverers, but fur previous assumptions. The ball apparently was started rolling iii 1880 by Trechmann,2 who reported a new modification of tin (7 tin), which was brittle and found in "hard head," a highly arsenical, slaggy material produced in a certain stage of tin smelting. A mixture of two kinds of crystals was obtained from a Cornish tin furnace, and those thought to be 7 tin were studied crystallographically. The results indicated that these crystals were rhombic and of different density from the tetragonal tin prepared electrolytically by Miller. Their analysis was given as 98.7 per cent Sn, 1.3 per cent Fe, and traces of As, Sb, Bi and S. In 1881 von Foullon4 obtained similar crystals from a Bohemian tin furnace. Headden5 examined crystals similar to those of Trechmann and von Foullon and reported them to be monoclinic, but of analysis corresponding to stannous sulphide. Later, Stevanovic,~ by goniometric measurements, proved that these crystals of SnS were really rhombic. Groth7 pictures and describes both "rhombic tin" (Fig. 9, vol. 1) ant1 stannous sulphide (Fig. 84, vol. 1); their faces and angles correspond within the accuracy of measurement. Spencers in 1921 examined the above evidence critically; lie lound similar crystals from Cornish tin furnaces, proved them to be SnS, and even was able to analyze some of Trechmann's original specimens, finding high sulphur content. (Apparently Trechmann's analysis had been based on :L second lot of crystals, not described crystallographically.)

Jan 1, 1939

By D. T. MacRoberts

This paper embodies the results of theoretical studies concerning gas reservoirs, especially the effect of drilling programs of various intensities upon pressure depletion and ultimate recoveries. The primary objective has been to determine the net quantity of recoverable gas that could be obtained as a result of each additional well, in comparison with the gas . that might be secured from a single well ideally placed with respect to both acreage and geological structure. No method is yet known whereby the relative merits of intensive and sparse drilling can be compared experimentally; a reservoir must either be drilled closely or developed with wide spacing, but both programs cannot be conducted simultaneously. Hence, the analytical method seems to be the only approach to the problem. While the present state of our theoretical knowledge does not offer a precise solution to the problem of gas flow in sand bodies, it takes such appropriate cognizance of the limitations of the methods used as to restrict any answer obtained to the realm of engineering accuracy. In solving the problem for the average gas field, it was found that practically the same answers resulted as to pressure distribution, regardless of the size of the drainage radius, even though the latter was assumed to vary from a few feet as a minimum to that of the entire reservoir as a maximum. Such limits represent extreme possibilities; therefore, the practical conditions that are associated with normal development programs, in which wells are placed in the center of tracts varying in size from 40 to 640 acres, will of necessity result in less extreme variations than those indicated in the tables accompanying this paper. Stated more concisely, the amount of gas unrecovered at abandonment (of the particular field used for illustrative purposes) will lie somewhere between 4.6 and 6 per cent of the total original content, no matter how intensively the field is drilled. Gas reservoirs may be divided into two general types, those in which the energy is intrinsic, and those of which the energy is extrinsic. † The first type contains energy in the form of a compressed gas, which expands

Jan 1, 1938

Large scale mining of Mesabi taconites may have moved nearer to realization with the arrival of the latest model Linde Jet-Piercing machine at Reserve Mining Co.'s Babbitt, Minn. property. When the machine is placed in operation it is expected to pierce blast holes in the hard taconite beds up to 10 times faster than is possible with existing drilling equipment. The new primary blast hole drilling machine has been designated the JPM-3, and is the successor to the JPM-1, in operation at Erie Mining Co.'s taconite mines at Aurora, Minn. The size of primary blast holes which can now be pierced has increased from a nominal 61 in. diameter to 71 in. diameter and maximum hole depth has increased from 35 ft to 47 ft. Development has progressed to where 71/2 in. holes can be pierced with the same speed as 61/2 in. holes. Piercing progress is controlled by electronic blowpipe descent controls. Other features of the JPM-3 include: automatic burner ignition from the operating cab; heated and air conditioned operating cab designed for all-year operation; mechanical improvements for sub-zero operation common to the Mesabi, and redesign of wearing parts for longer service with minimum maintenance. The 40-ton machine is self-propelled. Power, oxygen, and cooling water lines trail from the machine. Jet piercing is based on combustion products of oxygen and a liquid fuel such as kerosene. The flame, jetting from a burner at speeds of about 6000 ft per sec, disintegrates layers of spallable rock. The burner is cooled by water which is then directed through orifices around the periphery of the burner. The water changes to steam and carries the spallings out of the hole. The equipment used in Jet-Piercing is essentially a tractor-mounted blowpipe containing a combustion chamber and nozzle, which is in effect a miniature rocket motor, from which the supersonic combustion gases emerge to do their work.

Jan 1, 1952

By William J. Douglas, Jack T. Urie, Randall D. Metz

Production and financial planning for a new underground mine requires the coordination of equipment and coal reserves in a manner which assures that resources are utilized efficiently in achieving the target mine production. It is necessary to establish the productions which are attainable at the section level during different mining operations (advance, retreat, development) and under different mining conditions (roof, seam height, resource quality). It is also necessary to identify the interactions between production plans and ventilation equipment So that operations can be carried out without disruptions caused by inadequate ventilation. A set of computer models has been applied in planning a number of new coal, oil shale, and phosphate mines. A critical path production model, CPMINE, was used to determine face production levels for different cut sequences and seam heights, taking into account machine performance characteristics and operational availabilities under these varying conditions. The results formed a production data base for use in the mine sequencing model, MPLAN. This model processes each of the segments of a user-defined mine sequence network (strategy tree) taking into account the equipment available for mining operations and the previously determined production scheme devised by the mining engineer. Mine ventilation was analyzed with an expanded version of the Penn State MVS Ventilation model to determine fan and ventilation shaft requirements for supporting alternative production strategies. The MCOM mine cost analysis model has been applied to evaluate the economic performance of mining alternatives. The results of these studies were used to make decisions relating to equipment selection and acquisition schedules for both room-and-pillar and longwall mining systems. The approach and procedures which were used during these studies are described.

Jan 1, 1983

Jan 6, 1976

By H. J. Rahilly

MINE FIRES, in the Butte District, have been a source of trouble and expense for the past thirty years, for while the actual fire area in most of the mines has been comparatively small, the handling of the gas has generally been a much larger problem than the actual putting out of the fire. The chief causes of these fires have been: Defective electrical equipment, incendiarism or carelessness, and spontaneous combustion. While fires from the first two causes have been numerous, they have generally been discovered and extinguished before they became very serious. Spontaneous combustion has been the cause of most of the large fires. Sufficient heat has been generated by ground movement, high rock temperatures, and decomposition to set fire to inflammable materials (tarred ropes, canvas, dry timber, manure, and hay) left in the gobs some years ago. Also, the heat resulting from the oxidation of the fine broken sulfide ore is sometimes sufficient to set fire to the timbers. In 1906, a fire was discovered on the 1100-ft. level of the Minnie Healy mine about 400 ft. (122 m.) west of the Minnie Healy shaft, which presumably originated, in one of the upper levels, from spontaneous combustion. The fire was walled off by concrete bulkheads and a pillar of ground 100 ft. (30 m.) thick was left below and mining resumed underneath. During subsequent operations, this pillar became cracked and broken and the fire passed into the new workings. It travelled downward and spread rapidly until, in 1917, it had become necessary to wall off portions of the Tramway, Leonard, and West Colusa mines on the 1300, 1400, 1500, 1600, 1800, 1900, and 2000-ft. levels, and the top of the 2200-ft. raises were sealed. The fire area now consists roughly of a block 1000 by 1200 ft. and from the 600-ft. to the 2200-ft. level. This block is composed largely of a series of parallel northwest-southeast nearly vertical veins and stringers that form a large orebody, with no well-defined walls but badly fractured and faulted, and known locally as "Horsetail Ore." These veins, or orebodies, are mined by the square-set or the rill method.

Jan 2, 1922

By C. D. Broadbent

INTRODUCTION The slope stability research plan at Kennecott was developed to serve the specific needs of large, open pit mines; primarily those developed in faulted and highly-fractured intrusive deposits. The program emphasis is on applied research; being defined in this case as research into the engineering mechanics of discontinuous rock and into the related rock property survey and slope design techniques. The program has been developed in phases, with each phase organized to explore more thoroughly the most significant findings of previous work and to improve on techniques found to be applicable. The current work is based on principles developed early in the program and that show promise of having engineering and economic value. A brief summary of the conceptual principles of the program is given to put our current work in context. This is followed by a review of the two cooperative programs done with the U. S. Bureau of Mines. Most recent work is described and interpreted in terms of practical slope design. Although failure-free slopes are a desirable goal, it is recognized that some failures will occur when overall slope designs approach a calculated safety factor of one. A discussion of failure control research is therefore offered. BACKGROUND In 1965 Kennecott management specified that a slope stability technology must be used to achieve optimum development of ore resources. The subject was carefully explored and by 1960 it had been established that there was no technology readily applicable to open pit slope design. Therefore, in 1962, Kennecott Copper Corporation and the U. S. Bureau of Mines agreed upon a cooperative research program having the objective of developing a mine slope stability science. One of the first decisions made by the cooperating groups was that the research must be conducted primarily in the field and not in the unrealistic environments of a laboratory. Accordingly, the Kimbley Pit, an abandoned mine once operated by Kennecott's Nevada Mines Division in Nevada, was selected for the full-scale research. Fortunately, there was near-universal agreement on the basic stability parameters and thus on the areas to be investigated. These parameters were acknowledged to be: (1) anisotropy (generally due to faults or joints), (2) stress, and (3) water; in that order of importance.

Jan 1, 1972

Jan 1, 1961

By H. J. Struth

In these trying times of proration and low oil prices, it is decidedly necessary for all branches of the petroleum industry to accord full recognition to the economic phenomena that contribute to its varying state of welfare. Perhaps no other single factor has a more important bearing upon the general oil situation than the supply and demand of gasoline. Year after year, the records have shown that the degree of prosperity or depression accompanying the industry's developments has been to a large extent influenced by the degree of balance maintamed between the supply and demand of gasoline. More and more it is being realized within the industry that equilibrium between the supply and demand of gasoline forms the basic structure of crude and product market values and, consequently, the deciding factor in the financial results of the industry as a whole. The influence of the gasoline situation upon the market and financial structure of the petroleum industry was effectively demonstrated during 1930, when excess accumulation of gasoline undermined not only the refined oil market but the crude market as well. In fact, it was a top-heavy gasoline situation that defeated the realization of benefits that might have accrued from an otherwise favorable statistical position in the producing branch of the industry. Indicative of this is the fact that crude oil production was curtailed to the extent of 98,323,000 bbl. last year, while refinery runs to stills were maintained at an excessive rate until late in the year, creating an excess gasoline production of 6,663,000 bbl. above actual requirements. Nevertheless, the movement to curtail refinery operations during the closing months of the year prevented a far worse situation, although it came too late to turn the ebbing momentum of the general oil market. Despite the severe depression of the market values that accompanied 1930 developments, it can be said that the results attained during the closing months of the year, in the direction of production control, marked a decisive turn in the industry's economic affairs. In fact, a review of the oil situation from every angle points definitely to a better general understanding and recognition of the workings of the economic law of supply and demand. As a result, the year closed with crude production in

Jan 1, 1931

By F. E. Bash

About three years ago, the writer presented a paper1 on the rate of heating and cooling of a 24-in. round ingot. The present paper deals with work done on larger ingots at the plant of the Allis Chalmers Mfg. Co., Milwaukee, Wis., in August, 1919. Sufficient data on ingots of all sizes were desired to enable one to calculate in advance the rate at which any ingot could be raised to a forging temperature without injury to the steel, determining also the temperature gradient between different sections of the ingot and the length of time necessary to heat to the center. This has now been experimentally determined for 24-in. and 45-in. ignots by the writer and for a 18-in. cube by E. F. Law.2 J. F. Harper has also made tests on heat-treating temperatures on 30-in, ingots; which data are included in this paper. No attempt is made here to work out a formula for the heat penetration of steel, for too many factors are involved concerning which we have not sufficient information, as for instance, the specific heat of steel up to 2300' F. It is hoped that eventually a set of formulas will be developed so that one may calculate maximum allowable temperature differences within an ingot for any particular kind of steel and the rate of absorption of heat and temperature gradient within the ingot for a definite temperature head. EXPEEIMENTAL INGOT The ingot tested was 45 in. in diameter, having been forged into the shape shown in Fig. 1 from 54 in. diameter. Seven -in. holes were

Jan 1, 1923

By E. V. Daveler

THE milling plant of the Alaska-Gastineau Mining Co. is located at the town of Thane, Alaska, on Gastineau Channel, 4 mi. south of Juneau and directly across the channel from the Ready Bullion mine of the Treadwell mines on Douglas Island. Previous to the organization of the Alaska-Gastineau Mining Co., in 1912, the milling was done at the stamp mill of the Alaska Perseverance Co. located at the mine in Silver Bow Basin. But the contemplated increase in production made it necessary to locate the mill on Gastineau Channel, as not enough water was available at the mine during the winter months, nor was there room for taking care of the large tonnage of tailings that would ultimately be discarded from the mill. CHARACTER OF ORE The gold and silver values occur in quartz lenses associated with pyrrhotite, galena, arsenical pyrites, and zinc blende. These lenses occur in large bodies of slate, schist, and metagabbro, which also carry some valuable metallic contents. With the essential low cost of mining, it was necessary to mine large bodies of low-grade material containing the high-grade streaks. Of the minerals, pyrrhotite, the magnetic sulfide of iron, is predominant, and galena is the next sulfide present in quantity. The gold occurs free and coarse and associated with the iron sulfide in its finer state. The silver occurs with the lead or is alloyed with the gold. A chemical analysis of the ore shows Silver 0.10 oz. Magnesia 0.4 per cent. Silica 59.7 per cent. Sulfur 1.2 per cent. Iron 5.2 per cent. Lead 0.1 per cent. Alumina 21.4 per cent. Zinc 0.2 per cent. Lime 5.0 per cent.

Jan 1, 1920

By R. E. H. Pomeroy

The statistical data given in this paper are taken from the actual performance of the No. 2 reverberatory furnace of the Nevada Consolidated Copper Co., Mc Gill, Nev., for a period of four months, from April to July, 1914. The principal furnace dimensions are: Length, 132 ft. % in. at the skim-line level; average width, 18 ft., 10 in. at the skim-line level. The roof is 7 ft. above the skim-line level at the firing end. The average area in the uptake flue is 36 sq. ft., and the area above the skim line under the vulcatory arch is 24.3 sq. ft. Fig. 1 shows a diagrammatic plan and sectional elevation of this furnace. The furnace is equipped with two 400-b.h.p. Stirling waste-heat boilers set in parallel. California crude petroleum is used for fuel and has a specific gravity of 16.5" B., flashing in open test at 199" F. The oil is heated to about 200" F. in a steam heater before going to the burners, requiring about 9 b.h.p. per furnace day to heat it from the line temperature to the burning temperature. Measurement is made by oil meter, checked daily by reservoir readings. The oil is fed by gravity (34 Ib. static pressure) to seven low-pressure blast burners of the Steptoe type (Fig. 2). The blast for these burners is supplied at about 40-08. pressure by a motor-driven Connersville blower of 42 cu. ft. capacity per revolution. The air supplied by the blower through the burners for atomizing the oil amounts to about 10 per cent. of the theoretical air necessary for complete combustion of the oil. The remainder of the necessary air enters the furnace through the burner openings in the firing wall. No checker holes are provided, and the charge holes in the roof are equipped with slide gates and " dog houses" to minimize air leakages. The combustion of the fuel, as shown by gas analysis at the front of the furnace, is practically complete, the carbon monoxide in the gases being less than 0.5 per cent. The draft at the firing end of the furnace is 0.18 in. of water. At the throat or in the uptake above the "verb" the draft is about 1 in.

Jan 1, 1915

By William Glenn

The taking of proper samples of crude ores seems to he less thoroughly understood, or less carefully practiced, than its impor tance requires. We all know how often we encounter the reports of very accurate assays and analyses, the weight of which as evidence wholly depends on the method of obtaining the sample, and is very probably nil, because there has been no proper sampling. Pissages might be cited from technical books, and from current technical literature (all the work of writers whom we delight to honor) to show that even among high scientific authorities there is too little acquaintance with the practical art of the sampler. There is no metallurgical or chemical establishment which does not frequently receive samples truly representing nothing. They consist usually of bits of ore, or what not, selected because they are worse or better than the average of what they are meant to represent. And they are worthless, no matter who made the selection. Where conscious choice is permitted to enter into the operation, a fair sample will not result, unless by a miracle. The work of sampling is often looked upon as within the realm of boys and of pensioners only. At least, though the manual labor be left to subordinates, the principles on which it is conducted and the safeguards with which it is surrounded are not unworthy of the study of experts; and experts should he ready to teach these principles and enforce them in practice. For exact sampling is the indispensable first step towards learning the value of any boxful, carload or shipload of ore. I propose to give a simple account of the method of sampling by hand, such as I have always pursued. There is nothing new about it. So far as I know, it is the immemorial old method, as old at least as Cornish copper-mining. Perhaps my fellow-members in the Institute may suggest improvements in it. If not, it will constitute a record in our Transactions to which laymen and beginners may be referred.

Jan 1, 1892

By William Plank

IN PAST YEARS, engineering educators and others have been able to study the problems relating to en-gineering education in the United States with only inadequate and, frequently, inaccurate data at their command. For the first time there is now available fairly full and accurate information on this subject, gathered and compiled by the Board of Investigation and Coordination of the Society for the Promotion of Engineering Education. This board, of which W. E. Wickenden is the director, has for the past four years been carrying out fact-finding investigations into "the objects of engineering education and the fitness of the present day curriculum," under a grant of funds from the Carnegie Corporation of New York. Twelve bulle-tins have already been published by the board and others are in the process of preparation. The studies made, thus far, have been of the various phases of engineering education in general as well as of the major branches of engineering. Within the past year. the board has completed a study of mining engi-neering education by means of a questionnaire sent to members of the Institute. A special committee, con-sisting of Charles E. Locke, Allen H. Rogers and the writer, cooperated with the board in drafting certain parts of the questionnaire and in selecting the mailing list. Similar studies have been made through the mem-bers of the four other national societies. The results of these studies have been published only in mimeo-graphed form, therefore, in order to place the data before the members of the Institute an incomplete sum-mary of the replies to the A. I. M. E. questionnaire is here given. The full report will be available for distri-bution at the annual meeting in February. The questionnaire was sent to 306 members of the Institute, a proportion about equal to the proportion of the membership of the other national societies can-vassed; 152 members replied to the questionnaire, 55 per cent of whom had received college degrees in some branch of engineering connected with the mineral in-dustry. Forty-seven educational institutions were rep-resented in the replies. Seventeen different positions were held by the members who replied, with 24 con-sulting engineers at the head of the list, 20 managers, 16 superintendents, 11 presidents, 10 professors, 6 deans, and others.

Jan 1, 1928

By Ray W. Arms

DRY cleaning, or pneumatic separation, is not, strictly speaking, a recent discovery. Among the archives of the Patent Office may be found many patents dating back as far as 1850 which cover early attempts to separate materials of varying specific gravity or of different shape by means of air. Hundreds of patents covering this art have been issued, which may be roughly classified into four general groups, as follows: 1. Stationary devices with pulsating air currents. The separating surface is usually riffled and air is supplied by bellows or compressors. This group also includes air jigs, which have been used rather extensively. 2. Stationary devices with continuous air currents. These submitted the material to a continuous current of air, either horizontal or vertical. Chaff is blown from wheat by such a device. 3. Reciprocating or vibrating devices with pulsating air. A small group in which the pulsating air is supplied by bellows and some motion provided in the separating surface to move the stratified material to various discharge points. 4. Reciprocating or vibrating devices with continuous air supply. This is by far the most important group and all recent developments have been along this line. All of the above groups involve the stratification of material by air and include none of the dry methods that use other principles, such as coefficient of friction, magnetism, etc. Air Stratification In all of the above groups of air separating devices, the same phenomena are found as exist in water concentrators; that is, free settling will be found in some and hindered settling in others, with a complex action on the reciprocating tables similar to the wet tables. The experimental value of the settling ratios of particles in air has never been determined but, following the formulas given in Richards'

Jan 1, 1924

By Folke H. Kihlstedt

Geophysical prospecting for ore has been more or less at a standstill during the present crisis owing to the lack of interest in base-metal exploration. A notable exception is the increased use of electrical and magnetic methods in prospecting for gold, the former in Canada, United States, Sumatra, Africa and Western Australia, and the latter on the Rand. This application to gold prospecting marks a forward step in ore prospecting because it is based upon mapping the geology instead of a direct location of the ore in question, as the amount of gold in an average gold ore is far too small to have any influence upon the physical properties of the rock in which it occurs. The development has thus gone in the same direction as geophysical prospecting for oil; that is, to find geological conditions that are genetically connected with the gold ore as exemplified by known occurrences. Naturally the success of this indirect prospecting depends upon two things: (1) the soundness of the geological conclusions upon which is based the hope of discovering new deposits, because a great many geological "set-ups" are barren, and (2) the ability of geophysical methods to help the geologist to collect the pertinent geological data within reasonable cost, after which favorable structures may be drilled or trenched. The first point is one to be considered by the mining geologist. In the vicinity of producing mines or promising prospects, the chances of finding ore in quartz veins and shear zones are great, and a survey giving the location of these features will materially guide both surface and underground exploration. Even in outside exploration the chances are sometimes favorable. As an example may be taken the Northeastern Ontario-Western Quebec gold zone. Large areas are here covered with glacial and post-glacial deposits and a simple study of available maps reveals the fact that less than 30 per cent of the area can ever be even preliminarily prospected by cominonly used prospecting methods, of which the pick and shovel are the main tools. Considering the number of deposits found, it is evident that many deposits remain hidden below the overburden. The knowledge of gold geology gives a starting point

Jan 1, 1934

By J. B. Umpleby

The function of gas in the development and production of oil has far-reaching consequences that should be emphasized. The technical aspects of the subject have recently had a great deal of attention but less thought has been given to fundamental concepts underlying oil and gas law and the many customs and practices that have grown up in the industry. I shall review briefly the advance in knowledge of the subject and attempt to relate these concepts to legislative, judicial and operating problems. Early writers on oil and gas in Pennsylvania noted their close association in oil pools and their contemporaneous decline in output; also, that as gas pressure decreases so does production, that new offset wells reduce the output of existing wells, and even that tubing a well lengthens its flowing life. Expanding gas was deduced as the principal expulsive force. These fundamental observations had been made at least as early as 1880.1 They were treated, however, as academic considerations and did not greatly influence law or practice for many years except to instill into all operators an urgent desire to hasten offset drilling in order to obtain as much of the flush as possible. The most noteworthy later advance in knowledge came in 1926 when Beecher and Parkhurst published their paper on Effects of Dissolved Gas upon the Viscosity and Surface Tension of OiL.² This paper added to the old idea of an expelling force the concept of a modifying agent that actually changes the physical characteristics of the oil and facilitates its movement through the pore spaces of the reservoir rock. Largely since the publication of this paper, intensive study and concerted effort have been given to means of using to a maximum, in producing oil, these combined properties of gas. This is shown clearly by the number of papers dealing with the subject, and the new and revived terms now widely used to express thought, such as the expressions gas energy, reservoir pressure, reservoir energy, gas-oil ratio, bottom-hole pressure, beaning, tapered tubing and back-pressure. These terms, some of which are

Jan 1, 1932

By H. H. Power, C. H. Pishny

When an oil operator becomes a party to a proration agreement he may wonder, with good cause, whether production prorated .today is merely deferred until tomorrow or whether oil might be lost. Various types of evidence obtained from production records when studied quantitatively are of great assistance in arriving at definite conclusions. A study of individual examples cited in this paper leads towards some solution of the problem, particularly when they are considered in the aggregate. Many production curves on various pay horizons were studied. A disappointingly large number of these were of contributory value, but inconclusive. However, there were enough curves of similar type from the Wilcox sand at Earlsboro, Bowlegs, Seminole City, the Cromwell horizon at Little River, and the Simpson dolomite at Valley Center, Kansas, from which reasonably definite conclusions were drawn. Assuming that deferred production is later made up with no increase in ultimate recovery, a curve (Fig. 1) shows the normal flowing and pumping life of a composite well, contructed by the family curve method. The initial production of the well shown is 1700 bbl. daily and the allowed production is 25 per cent. On this basis the average daily allowed rate for the first month is 425 bb1., or the area BCDE, which is equivalent to the area AFDG under the normal decline curve. The potential production for the second month is 1500 bbl. and the allowed production 375 bbl. daily. By this procedure a potential curve for each succeeding month is obtained (points A, H, I, J and K). If the well is opened it should produce somewhere near its potential curve for a short period and then decline at a more rapid rate than the potential curve. This theoretical analysis is basic. Actual examples exhibiting all points raised by the ideal curve are rare. Proration in the Mid-Continent area has been effected mostly by leases rather than by individual wells; hence a well may produce any

Jan 1, 1931

By Sidney A. Swensrud

About a year ago, I attempted in a general way to trace the origin and development of some of the marketing problems of the petroleum industry, and to describe certain trends which it then seemed possible to foresee. To summarize briefly, it was pointed out that the consumption of gasoline, after increasing for more than a decade at an almost unbelievable rate, was slowing down, but that the two factors which determine the supply of gasoline —-namely, the production of crude oil and the percentage of gasoline derived therefrom—were tending steadily to mount. It was suggested that, while the increase in gasoline outlets began with and probably was justified at the start by the rapidly increasing demand, long after all reasonable requirements as to number of outlets had been met the number continued to increase—if anything, at a still more rapid rate—because by that time the overproduction of crude had begun to exert an impelling urge upon the owners of that crude to seek assured outlets for it in the form of gasoline. As more and more companies became integrated all the way from crude oil to marketing, there took place an ever-increasing competition among them, not only for the existing outlets but for new ones. The wide margin between wholesale cost and retail price, which is characteristic of the early stages of most new industries, persisted in the oil industry longer than in most industries, for various reasons. The existence of that wide margin provided in large measure the means of attracting new outlets, for as the gallonage per outlet declined with the increasing number of outlets, competing companies simply offered the dealers a larger part of the total margin. The very nature of competition suggests that such a process would continue until practically all of the available margin was thus given away, and such was clearly the tendency. It was a system that in turn produced increasing marketing expense per gallon on account of the diluted gallonage per outlet; this increased expense might seem to have provided a justification for continuing wide margins. Economics, like its parent, nature, however, progresses by mutations and so began to throw out new types of marketers, in the form of tank-car service stations, cut-price jobbers, and the like—heretics or

Jan 1, 1932