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By Randall L. Neal

This paper discusses the impact of taxes at the state and federal level on typical on-shore oil and gas exploration economics in the USA. Taxes considered are the windfall profits excise tax, state production (or severance) taxes, state income tax, and federal income tax. Also considered will be market prices for oil and gas in the USA. The effect of government take as a percent of revenue, on rate of return, discounted Payout, and discounted cumulative cash flow is shown on the attached tables. The conclusion drawn is that tax laws, while rarely the most important factor to be considered when drilling a well, can have significant impact on the profitability of oil and gas ventures, and should be considered when determining where to drill. Hypothetical exploration wells were analyzed for the impact of tax laws on project profitability. The results of this study show that when factors other than taxes are postulated to be the same (such as producing rate, capital, operating costs, and prices), cash flow can vary by as much as 68% due to the differences in the tax laws. Other significant findings for the cases studied include: (a) that discounted payout varied by as much as 1.8 years, (b) that rate of return differed by up to 67% and (c) the total tax rate as a percentage of revenue had a maximum variance of 33%.

Jan 1, 1982

By Paul M. Tyler

ROUGHLY one-half the value of mineral products at mines or quarries must be spent for wages. In view of the steady increase in hourly wages that continued for several decades prior to the onslaught of the recent depression, it is perhaps surprising to discover that labor's share of the gross proceeds of the mining and quarrying industries of the United States declined to 46.8 per cent in 1929, compared with 52.2 per cent in 1919 and 53.2 per cent in 1909. The actual percentages vary in different branches of the industry and in different localities but the downward trend is unmistakable. For the period 1909 to 1919 it was quite marked in every industry and from 1919 to 1929 it was apparent in all but six: namely, gold and silver lode mining, placer gold mining, crude gypsum production, marble quarrying, asbestos production, and fluorspar Tninino mining

Jan 1, 1933

By Robert L. Clayton, Arthur Baker

Two massive sulfide zinc-copper ore bodies are in quartz-sericite schist (probably formed by regional metamorphism of sediments) and andesite of the Precambrian Yavapai Series, on opposite sides of a large rhyolite mass. The Copper Queen ore body is conformable with bedding of its schist host rock, but the Old Dick ore body probably crosscuts the strata. A lens of low-grade mineralization in chlorite schist, associated with the Old Dick ore body, crosscuts through 150 feet of strata. The ore bodies are almost entirely enclosed by premineral faults with less than 150 feet of displacement. The minerals of the ores are pyrite, sphalerite, and chalcopyrite, with minor arsenopyrite and galena and small amounts of intimately associated chlorite, sericite, and calcite. Old Dick sphalerite-chalcopyrite intergrowths have mutual boundaries, and sphalerite grains contain abundant exsolved chalcopyrite. Copper Queen sphalerite-chalcopyrite intergrowths have extremely ragged boundaries, the sphalerite contains no exsolved chalcopyrite, and the ore overall has a schistose texture. The pre-mineral fault on the hanging wall of the Copper Queen ore body has had 100 feet of post-mineral displacement. Wall rocks of the Old Dick ore body locally have been sericitized. Andesite and quartz-sericite schists for at least several hundred feet around both ore bodies have been chloritized erratically and contain traces of copper.

Jan 1, 1968

By George C. Bateman

I HAVE been introduced in the dual capacity of president of the Canadian Institute and Metals Controller for Canada. There are three particular points of similarity between these two positions. They are both temporary ; they both have to do with the mining industry ; and by a peculiar coincidence they both pay me exactly the same salary. It is difficult to appreciate the background of our present situation without knowing the really tremendous changes that have taken place since the last war. I sometimes think that even among ourselves we are likely to forget the extent to which our great mining industry has been expanded. In 1914 Canada's gold production amounted to only $16,000,000 and the suggestion was seriously ad¬vanced in Ottawa that the gold mines should be allowed to close down so that their men might be used in more important work. Today with a production at the rate of over $200,000,000 a year no one in Canada would venture such a suggestion because the output of our gold mines is the greatest single factor in producing dollar exchange, badly needed for the purchase of munitions and to maintain Canada's unbroken record of always meeting its obligations. Even with the severe restrictions now in effect against the importation of nonessentials, our imports for war purposes from the United States are resulting in the biggest adverse trade balance in our history. With us, gold mining ranks as an essential industry.

Jan 1, 1941

By C. P. Sandberg

Notwithstanding the growing importance of this subject, no work specially devoted to it has hitherto been published. Having had to inspect during the last twenty years nearly a million tons of iron and steel rails for various countries, I have obtained experience of what rail manufacturers can practically execute, as well as of what railway engineers practically require. Bearing these two points in mind, I have from time to time published observations with a view to unite both interests,—that of the producer and that of the consumer,—and to reduce the specifications and the forms of sections to standards, or types, in order to facilitate the execution of the works and to improve the construction of permanent way. The Swedish government railways, as well as private companies owning railways in Sweden, Norway, and Denmark,.have during the time above mentioned consulted with me and intrusted to me their rail inspection. I therefore owe to these countries much of the opportunity which I have enjoyed of gaining experience and position. Next to Sweden, America is the country which has most liberally favored me with its confidence in placing these matters in my hands. Through circumstances not under my control there has been little exportation to, and less work done by Europe for, America during the last six years; but the recent revival of the rail trade has been the more gratifying to mo, seeing that almost all the importers of American rails are still specifying for the Sandberg rail sections and inspection. It is therefore with feelings of gratitude that I now beg to lay before the American Institute of Mining Engineers, and I hope, through that body, before the American railway world, the results of some experience which I have gained in the execution of work for their country, and which therefore belongs rightfully to

Jan 1, 1881

By C. P. Sandberg

INTRODUCTION. NOTWITHSTANDING the growing importance of this subject, no work specially devoted to it has hitherto been published. Having had to inspect during the last twenty years nearly a million tons of iron and steel rails for various countries, I have obtained experience of what rail manufacturers can practically execute, as well as of what railway engineers practically require. Bearing these two points in mind, I have from time to time published observations with a view to unite both interests, -that of the producer and that of the consumer,-and to reduce the specifications and the forms of sections to standards, or types, in order to facilitate the execution of the works and to improve the construction of permanent way. The Swedish government railways, as well as private companies owning railways in Sweden, Norway, and Denmark, have during the time above mentioned consulted with me and intrusted to me their rail inspection. I therefore owe to these countries much of the opportunity which I have enjoyed of gaining experience and position. Next to Sweden, America is the country which has most liberally favored me with its confidence in placing these matters in my hands. Through circumstances not under my control there has been little exportation to, and less work done by Europe for, America during the last six years ; but the recent revival of the rail trade has been the more gratifying to me, seeing that almost all the importers of American rails are still specifying for the Sandberg rail sections and inspection. It is therefore with .feelings of gratitude that I now beg to lay before the American Institute of Mining Engineers, and I hope, through that body, before the American railway world, the results of some experience which I have gained in the execution of work for their country, and which therefore belongs rightfully to

Jan 1, 1881

By R. B. Woodworth

INTRODUCTION IN the sinking of bore holes, there are but two fundamental operations -drilling and hoisting,-which determine in the main the character of drilling mechanism and structures. There are endless ramifications, however, in the execution of these fundamental operations, according to the purposes for which the bore holes are drilled, their maintenance after completion, the protection and convenience of workmen, etc. The three main lines of use for bore holes are in mineral exploration, the sinking of water and salt wells, and the exploitation of petroleum and natural gas. This paper has to do more especially with the last. Here again there are many divergences. Wells may be drilled by either the percussive, the hydraulic, or the abrasive method. Finally, each of these methods, as applied by drillers of diverse nationalities, has followed somewhat different lines of development. The American system of cable-tool drilling has perhaps had the widest application; the hydraulic rotary is also in extensive use; but the Canadian system, the Galician system, and the Russian free-fall system all have their points of recognized merit and are preferred by operators accustomed to their use. These differences in drilling procedure, which rest ultimately on essential variations in geological conditions, are reflected in the chilling structures as well as in the drilling mechanism. The purpose of the present paper is to record those stages in the development of the application of steel to the construction of drilling mechanism and structures with which the writer has been intimately associated, and to contribute to the history of the art of drilling other data acquired in the course of his personal investigations. It is necessarily limited by reason of space to American practice, with especial reference, therefore, to the cable-tool system and the hydraulic rotary method of drilling wells for oil and gas.

Jan 11, 1915

By Paul E. Rosten

Introduction This papers describes some of the latest improvements that have been incorporated or planned by the Cleveland-Cliffs Iron Co. to reduce operating costs and improve pellet quality. The Cleveland-Cliffs Iron Co. operates and manages mining, beneficiation, and pelletizing operations in Michigan, Canada, and western Australia. This paper deals with the grate-kiln pelletizing operations at Republic, Humboldt, Tilden, Empire, and Pioneer in Michigan, and the Adams and Sherman in Ontario, Canada. Table I characterizes each operation in regard to location, ore type, pellet capacity and date that pellets were first produced. All of the operations with the exception of Pioneer and Tilden, utilize downdraft-two-pass grate cycles of drying followed by preheating. Pioneer utilizes an all-downdraft, three-pass grate cycle which consists of three drying zones followed by the preheat zone. The Pioneer and Tilden cycles have been described previously (Lindroos and Koski, 1966; Villar and Dawe, 1975; Koski, 1977). Tilden utilizes a three-pass grate cycle with a stage of updraft drying, followed by two downdraft drying stages. Recuperation systems which supply hot gases to a drying zone from second stage cooling were designed and fur¬nished for Tilden I. Tilden II will be identical. Empire IV will also be furnished with a recuperation system. The Adams grate¬kiln system was retrofitted with a recuperation system. This paper will summarize some of the efforts that are in effect or planned for grate-kiln pelletizing systems to: (1) reduce operating and maintenance costs, (2) reduce energy requirements, (3) improve product quality, and (4) meet environmental standards.

Jan 1, 1981

By Colin G. ink

OUTSTANDI'NG in progress among the less familiar 'metals during 1936 is the electrolytic production of 99.9 per cent manganese meta1 readily and many quantity. Strictly speaking, manganese should not' be classed as 'a rare metal, since there is 800 times as much manganese in the earth's crust as there is zinc or lead. But manganese' as a metal is rare, just as titanium metal is rare though titanium is five times as abundant in the earth's crust as manganese.

Jan 1, 1937

By Arthur La Motte

I NDUSTRIAL explosives, as distinguished from military explosives, include high explosives and blasting powder. The high explosives which are best known are straight dynamite, gelatin dynamite, ammonia dynamite and permissibles. There are two kinds of blasting powder, saltpetre blasting powder and nitrate of soda blasting powder. Blasting powders are mechanical mixtures of nitrate of potash or nitrate of soda with sulfur and charcoal, highly compressed, granulated and glazed. They ignite from a spark and burn with relative slowness, the rate of burning and hence the rate of conversion into gases depending upon the size of the granulation and upon the degree of. confinement under which the powder is placed. High explosives, on the other hand, are chemical compounds which detonate; that is, when the explosive is subjected to a violent shock, provided in practice by a blasting cap or an electric blasting cap, the molecule of the essential ingredient, usually nitroglycerin, is disrupted and the energy and heat released cause any other explosive ingredients which may be present, such as ammoniuin nitrate or T.N.T., to decompose with a resultant evolution of gases at an extremely rapid rate varying from 6000 to 20,000 ft. per second.

Jan 1, 1924

THE Copperton mill in reality was a sort of proving ground. It was. designed to serve three purposes: (1) to verify the accuracy of the mine sampling by actually treating substantial tonnages of ore, (2) to demonstrate on a reasonably large scale the percentage of the copper in the ore that could be recovered, and (3) to permit the testing of various kinds of machines and devices for crushing and concentrating the ore, so as to guide the engineers in designing the proposed 6000-ton milling plant at Garfield. As a matter of fact, it contained a lot of second-hand equipment sent by MacNeill and Penrose from the works of the United States Reduction &Refining Co. in Colorado; and it was by no means a model installation. Probably it would have been even less efficient, except for the skillful work of George O. Bradley and-Frank-G, Janney, both of whom had worked with Jackling at Mercur. Bradley was a mechanical engineer employed to design the plant. Later he directed the design of the concentrator at Garfield and remained as consulting mechanical engineer to the company until 1915. Janney, who afterwards became manager of mills, a position that he retained until his death in 1916, was a skilled mechanic at the Golden Gate mill at Mercur when Jackling built the plant in 1897. His flair was making machinery do what it was intended to do. He was not an ore-dressing engineer in a technical sense; but Jackling him- self was a specialist in this respect as well as in designing and construction and Janney's mechanical aptitude made him a particularly valuable man in the Utah organization. John McDonald, another of Jackling's Mercur associates, was the first mine superintendent. With practically all of the available funds earmarked for construction of the Copperton

Jan 1, 1933

By AIME AIME

IN ACCORDANCE with the provisions of the Rules of Procedure of the American Engineering Standards Committee, the American Society for Testing, Mate-. on Feb. 15, 1921, submitted for approval by the A. E. S. Committee certain Standard Specifications for Copper, all of which were adopted or in process prior to Jan. 1, 1920, and sent with the standards the following histories of development and statements of use. FOR SOFT OR ANNEALED COPPER WIRE (B3-15) These specifications were originaly adopted by. the American Society for Testing Materials in 1912. They were prepared by a committee of the Society designated as Committee B-1 on Copper Wire. The committee consisted of eleven members; representatives of five manufacturers of -copper wire, of four manufacturers of electrical apparatus, and of two firms of consulting and contracting engineers. The members of the committee were designated by the officials of the companies to act as their representatives in the committee.

Jan 1, 1921

By John Fritz

MEMBERS of the American engineering societies who were in London and Paris during the last days of. June and early July were present at many interesting gatherings. The official delegates of the Founder societies were the specially honored guests of the foreign engineering societies, but other American engineers took part in the meetings. The members of the delegation were: Arthur S. Dwight, Charles F. Rand, William Kelly, representing A. I. M. E.; Ambrose Swasey (general chairman of deputation), Ira N. Hollis, Jesse M. Smith, representing A. S. M. E.; F. B. Jewett, A. E. Kennelly, G. O. Squier, representing A. I. E. E.; Charles T. Main, Robert A. Cummings, John R. Freeman, D. C. Henny, representing A. S. C. E.

Jan 1, 1921

Early production records are practically nonexistent, although the early geological survey reports mention a number of mines as being in operation at the dates of the field surveys. Reports of the Bureau of Statistics began in 1878, and as usual, the tonnages reported were undoubtedly small. County histories gave some production figures, but not many. The use of the Indiana block coal in blast furnaces furnished a substantial market for a number of years, which ended about the close of the Civil War. Some coke was made from Indiana coal for several years in the eighteen-forties, as is described in the chapter on Coke. (Chapter 35.)

Jan 1, 1942

By H. D. Wilde

GREAT emphasis is being placed today on petroleum as a source of chemicals. Such prominence is well merited, for rapid strides have been made in developing processes for the conversion of petroleum into synthetic chemical products, which are now being made on a huge scale. These marvelous accomplishments have resulted in some highly optimistic predictions as to what can be expected in the future. Many of these forecasts are well justified, but some writers, especially those contributing to the Sunday supplements and the popular-cience type of publications, have let their imagination run wild and present a rather distorted picture of the possibilities in this field in the postwar period. Commercial manufacture of synthetic organic chemicals had its beginning in England with the establishment of a plant by Sir William Perkin in 1857 for the manufacture of "Aniline Purple" or "Mauve." The preceding year he had discovered in the laboratory how this dyestuff could be made from aniline, one of the many derivatives of coal tar, and he soon made commercial application of his discovery. Influenced largely by his success, organic chemists began research on production of a vast array of synthetic dyestuffs, medicinals, flavors, scents, and explosives. Rapid progress was made and by the turn of the century hundreds of these products were being manufactured. Most of these synthetic chemicals were derived from materials obtained as by-products in the conversion of coal into coke. These by-products are generally referred to as "aromatics" and are obtained by processing coal tar recovered in the coking process, so they are popularly known as "coal-tar chemicals." During the early years of this century, coal-tar chemistry was the wonder of the age, and rightfully so, since the products so made seemed limitless.

Jan 1, 1944

By Charles Y. Clayton

The shank, to give good service, should not upset nor should it cause excessive wear on the various parts of the machine. To fulfill these requirements, the steel must have a certain hardness—that is, resistance to deformation. The hardness is expressed in conventional terms, as Brinell or scleroscope number. Before deciding on the hardness that is proper, several factors should be considered; the most important are: type of drill steel used (whether hollow or solid), length of steel, nature of ground, air pressure, and hardness of hammer or anvil block (usually 600 Brinell). These are not all, but they are the most cogent ones. Without doubt, it would be better to use a shank that is too soft than one that is too hard. Most satisfactory service will be obtained from shanks that are just hard enough to resist any tendency to upset. To express the proper hardness in terms of Brinell numbers would mean a great many tests over a long period of time, or a study of drill steels that are being used successfully in the various districts. To obtain some information along this line, the persons making this investigation requested, a number of companies to send to them drill shanks that had been given the usual treatment at that mine. The results of the hardness tests are given in Table 1. The hardness values given in Table 2 are those of shanks known to have been quenched in water and drawn. These results show that where water quenching and drawing are in vogue the hardness is rarely under 400 Brinell.

Jan 1, 1923

By Charles Y. Clayton

The shank, to give good service, should not upset nor should it cause excessive wear on the various parts of the machine. To fulfill these requirements, the steel must have a certain hardness—that is, resistance to deformation. The hardness is expressed in conventional terms, as Brinell or scleroscope number. Before deciding on the hardness that is proper, several factors should be considered; the most important are: type of drill steel used (whether hollow or solid), length of steel, nature of ground, air pressure, and hardness of hammer or anvil block (usually 600 Brinell). These are not all, but they are the most cogent ones. Without doubt, it would be better to use a shank that is too soft than one that is too hard. Most satisfactory service will be obtained from shanks that are just hard enough to resist any tendency to upset. To express the proper hardness in terms of Brinell numbers would mean a great many tests over a long period of time, or a study of drill steels that are being used successfully in the various districts. To obtain some information along this line, the persons making this investigation requested, a number of companies to send to them drill shanks that had been given the usual treatment at that mine. The results of the hardness tests are given in Table 1. The hardness values given in Table 2 are those of shanks known to have been quenched in water and drawn. These results show that where water quenching and drawing are in vogue the hardness is rarely under 400 Brinell.

Jan 1, 1923

By Robert B. Hill

A history of gravity classification shows the development of many types of equipment with several prominent types continuing in use today. Part of the development and evolution is the spiral classifier. Data will be presented showing characteristic size separations in a closed circuit grinding operation. Comparisons with hydro- cyclone operation will be shown including operating cost comparisons. Effects of variables will be shown in spiral classifier operation. Finally, other uses for spiral classifiers will be described.

Jan 1, 1982

THE Institute assembled on Tuesday evening, October 24th, in the hall of the Franklin Institute, Mr. Frank Firmstone, VicePresident, in the chair. Mr. J. Price Wetherill, of Tremont, Pa., read a paper on An Outline of Anthracite Coal Mining in Schuylkill County, Pa. The paper was discussed by Messrs. Coxe, Rothwell, Heinrich, Harden, and Symons. The second session was held on Thursday evening. Mr. A. L. Holley, Chairman of the International Committee, appointed by the Institute to consider the nomenclature of iron and steel, offered the following report of the committee, signed by all the members: WHEREAS, The recent production of soft, cast, malleable compounds of iron by the Bessemer, the Siemens-Martin, and the crucible steel processes appears to demand a new nomenclature of iron compounds, for the following reasons: 1st. The term "steel," by which these soft products are commercially and professionally designated in England and in the United States, does not completely distinguish them from previously existing "steel which would harden and temper. 2d. A nomenclature recognized in all languages seems desirable, as well for commercial as for scientific purposes, especially as lawsuits, already commenced, depend on the meaning of the term " steel." 3d. Although homogeneity, due to fusion, is usually recognized, and is by this committee recognized as the most definite characteristic of both hard and soft steel, this quality may be equally well expressed in other terms, thus leaving the old term, " steel," to define the malleable compounds of iron, which will harden and temper. Therefore, resolved, That this committee recommends the following nomenclature : 1. That all malleable compounds of iron with its ordinary ingredients, which are aggregated from pasty masses, or from piles, or from any forms of iron not in a fluid state, and which will not sensibly harden and temper, and which generally resemble what is called " wrought iron," shall be called Weld Iron (German, Schweisseisen; French, fer soudé). 2. That such compounds, when they will from any cause harden and temper, and which resemble what is now called puddled steel," shall be called Weld Steel (German, Schweiss stahl; French, acier soudé).

By Albert Sauveur

IT is not without some hesitation, and even misgiving, that I venture into a discussion of the now classical Roberts-Austen Roozeboom diagram, lest I too fail, like so many other writers, in giving a satisfactory and logical explanation of these interesting curves. Roozeboom's original diagram is reproduced in Fig. 1. The generally accepted meaning of the various curves has been so often described before this Institute that it will suffice to recall it briefly before passing to my own interpretation of the changes involved.

Nov 1, 1906