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By J. D. Anthony

The Australian continent possesses significant reserves of a wide range of minerals, including bauxite, coal, copper, diamonds, gold, iron ore, lead, manganese, mineral sands, nickel, phosphate, silver, tin, uranium, and zinc. Australia's identified economic resources of many minerals are very large as indicated in Table 1. A sophisticated and highly experienced mineral industry is now an established feature of the Australian economy and Australia is the world's largest exporter of iron ore, alumina, mineral sands and refined lead and amongst the leading suppliers of many other commodities such as coal, lead and zinc ores/concentrates, nickel, refined zinc, tungsten concentrates and bauxite. The industry exports 70% of its production. This is reflected in the value of Australian mineral exports which have grown from about $200m in 1960/61, comprising 10% of total export receipts, to about $1265m or 29% of export income in 1970/71 to around $7061 representing 37% of Australia's total export income in 1980/81. Details of the more significant minerals are as follows: Japan (42.1%) USA (11.3%) ASEAN (6.3%) UK (5.9%) F.R. Germany (3.8%) Republic of Korea (3.4%) New Zealand (2.6%) Also see Table 2. AUSTRALIA'S MINERAL RESOURCES POLICIES Federal and State Governments' Responsibilities Australia has a federal system of government comprising six States, a self-governing Territory and a Federal Government. Under the Australian federal system the Constitution sets down the powers of the Federal Government. All powers not assigned to the Federal Government in the Australian Constitution reside automatically with the States. Certain of these broad powers result in the Federal Government having a significant influence on resources development. For example, in being responsible for economic management, the Federal Government's fiscal and monetary policies have an important effect on industry as well as on State finances. In particular, the taxation regime employed by the Federal Government is of direct importance to decision-makers in the resources industry. The Federal Government is responsible also under the Constitution for external trade matters; and international trade and commodity matters are increasingly important in Australia's international relationships. Foreign investment is another area where the Federal Government has a role to ensure that national interests are protected. This foreign investment power flows from the Federal Government's control of foreign exchange movements into and out of Australia. However, before enlarging on these and others of the Federal Government's powers and policies, it should be emphasized that the State governments, by virtue of their wide powers to regulate matters within their own boundaries, are more directly involved in the day-to-day administration and regulation of mining operations. For instance, the powers of the State governments include the responsibility-for the granting of exploration rights and mining leases, the approval of mining operations and the levying of royalties and other like charges. Administrative arrangements covering the granting of minerals and petroleum exploration and development titles vary from State to State. Before development rights are granted, State governments consider environment protection and rehabilitation aspects of development proposals. The provision of infrastructure within State borders is a matter primarily of State government responsibility. It is usual practice in Australia for State governments to construct and operate infrastructure services such. as railways, ports and electricity generation and transmission. The States may also provide certain public services such as electricity. and water, port and loading facilities, communications, health and education services which form part of the infrastructure of mining operations. In remote areas the mining companies themselves usually are expected to provide much of this infrastructure. However, the Federal Government is primarily responsible in some fields, such as telecommunications and parts of the railways network. State governments carry out preliminary exploration and geological mapping and some are directly involved in the mining of coal for power generation. The Federal Government's responsibilities in addition to economic management, taxation, international relations, foreign capital and investment, include regulation of exports, environmental matters and matters affecting the Aboriginals of the Northern Territory. FEDERAL GOVERNMENT POLICIES The continued sound development of the minerals and energy resources sector is regarded by the Federal Government as being of very great importance. However, the Government does not seek to participate directly in resource developments. It sees its role rather as that of establishing a sound economic and policy climate in which private companies can identify opportunities, seek out customers and marshall the necessary capital for the development of resource projects.

Jan 1, 1982

By R. R. Harvey

Recent evidence has indicated that the films forming at crude oil-water interfaces are the result of naturally occurring su,rface-active components in the crude oil rather than oxidation products resulting from exposure of the oil to air. Since the presence of such films may strongly affect the displacement of oil from porous media, a knowledge of their composition and formatiorz is of fundamental importance. In this study, without the assumption of a specific mechanism, film formation is considered to involve the transfer of a weakly surface-active species in solution in the oil to the oil-water interface. The film gas law and the Gibbs adsorption equation may thus he applied to the system. The rigid films which form upon decrease of the oil-water interfacial area are considered a result of the very slow rate of re-solution of the film material into the oil. When the shrinkage of the interface is very rapid, the amount of film material leaving the interface is negligible, and the system may then be treated in the same manner as an insoluble film. The combination of these treatments leads to a new concept of the film factor in which it may he quantitatively related to the concentration of film-forming material at the interface. Suitable experiments can then yield the following information. 1. Original concentration of surface-active species in the oil. 2. The change of concentration with time. 3. Concentration of surface active species at the interface. 4. The change of this concentration with time. 5. Interfacial tension of the system at any time and its variation with time. 6. Equilibriunz concentrations for a given set of conditions. 7. Concentration requirements for solid film formation. 8. Molecular diameter of the adrorbed species. These calculations may be made solely from data taken from measurements on the original oil. While using the pendant drop method of interfacial tension measurement of crude oil-water systems, Bartell and Niederhauser' remarked on the thin, transparent, pliable, solid films or membranes which were often formed at the interface between crude oil and water. As a result of their observations of these films, Bar-tell and Niederhauser concluded: 1. The films are formed by material from the oil adsorbed at the interface rather than by a reaction at the interface. 2. The adsorption of the film-forming material is a rather slow process. 3. There are good indications that the process is reversible; i.e., the film constituents may re-dissolve into the oil. 4. The film will spontaneously spread over any new surface formed. 5. The process of adsorption at the interface is accompanied by a decrease in the interfacial tension of the system. Although they had proved that film formation was not due to a reaction at the interface, Bartell and Niederhauser were unable to demonstrate conclusively whether these film-forming constituents were present in the original reservoir oil or whether they were formed as oxidation products after exposure of the oil to air. Recent evidence seems to point to their presence in the original oil. Although the true nature of the film-forming constituents is still uncertain, these conditions would be fulfilled by the assumption of the presence of a slightly soluble surface-active component in the original oil. This component would migrate to a freshly formed interface because it would thereby lower the free energy of the system. The component at the surface constitutes an expanded monolayer which would become compressed, upon retraction of drop, due to the slow rate of re-solution of the film components into the bulk of the oil. It is possible, by involved extraction processes, to separate or at least concentrate this film-forming fraction. However, using the assumptions made above, the technique of monolayer film study may be applied to reveal much of the nature of the adsorbing material without resorting to an actual separation of the film-forming constituents.

By ARCHIBALD DOUGLAS

BY this time almost everyone knows, in a general way, the corporate income distribution policies of the 1936 Revenue Act, and many of the practical problems arising there under. This article is not intended to be a technical discussion of that act by title, subtitle, section, or supplement, nor an analysis of inter- dependent sections of the various acts over many years woven on the fiscal loom f our Congressional machine. Such a discussion would require the spinning of a web of words too long for patience. Yet ,a general statement of the underlying plan of the 1936 Act, so far as it affects dividend policies, is perhaps useful.

Jan 1, 1937

By Scott Turner

HOSTS of friends will rejoice that T. A. Rickard has been given honorary membership in the Institute. It might well have been done long ago, since, when one reviews distinguished services rendered by individuals to our organization and our profession, it is at once apparent that his name ranks high and that he has merited this distinction for more than three decades. Our by-laws restrict this list to twenty names; "T.A." becomes the sixteenth living member. Young engineers should particularly be pleased; Mr. Rickard has had a career rich in human interest, and full of useful suggestions to the younger men; he has given them good advice and set them a notable example; he, more than anyone else, has shown them how technical writing can be clear and concise; he has inspired youngsters to do their best; he has been their friend. No one has more first-hand knowledge of these facts than the writer of this appreciation:

Jan 1, 1935

By R. J. Woody

DESIGN of the most economic continuous counter-current decantation (CCD) circuit is based on selection of the number of stages and the wash volume that will give the minimum summation of the following items: 1) Capital and operating costs of the CCD circuit. 2) Capital and operating costs of the precipitation circuit. 3) Value of the dissolved product lost.

Jan 7, 1958

By Orville R. Lyons

THE removal of moisture from coal has been a coal-preparation problem ever since the first wet-washing preparation plant was placed in operation. Today, when most of the coal produced in the United States is wetted at the working face when mined, or is cleaned by wet methods, the removal of moisture is a necessity for any one or a combination of the following reasons; (1) to avoid freezing difficulties during shipment, (2) to increase the B.t.u. content, (3) to effect savings in freight costs, and (4) to so improve the coal that it may be used for specific purposes-for instance, in the production of briquettes or the production of metallurgical coke-or so that it can be treated by dry cleaning methods. In general, the amount of water retained by coal particles varies with the size-consist of the coal. Fine coal has a larger surface area per unit weight than does coarse coal, so its capacity for retaining moisture is proportionately greater. The removal of moisture from coarse coal is relatively easy, while the removal of water from minus 10-mesh coal or finer is a major problem, usually requiring an individual solution at each preparation plant. As a result, a multitude of methods and a variety of equipment have been designed to solve both general and specific moisture-removal problems. Definitions In order that misunderstanding may be eliminated insofar as possible, it is necessary to define the terms to be used. The moisture content of any given increment of wet, washed coal is made up of two parts, inherent and surface moisture. Inherent moisture has been defined in various ways and as yet no standard definition has been agreed upon. However, in general, it is considered as the moisture that is present in the coal in the bed. The important point to remember is that coal with any amount of inherent moisture, whether 2 or 20 per cent, will appear dry if there is no surface moisture. Also important is the fact that inherent moisture can be removed, in part, by air drying at atmospheric temperatures. Surface moisture is that attached to the surface of the coal particles or that retained in cracks and fissures other than capillary openings in the coal substance. Essentially, insofar as the bituminous coal and anthracite indus-

Jan 1, 1950

By Edward H. Robie

THE registration badges gave out, there were not enough programs, the Pioneer Hotel's rooms were insufficient, and some hundred applicants for banquet tickets had to be turned down at the Institute's Regional Meeting in Tucson, Nov. 1-5. Minor inconveniences these, however, occasioned by the fact that, optimistic as they are in Arizona, about half again as many partook of the week's activities as were expected. For this, the local program committee can be blamed-both the technical and social features were too attractive in quantity and quality. Seriously speaking, though, the Institute has probably never had a more successful Regional Meeting than this one. It being the first that has been held in Arizona in 22 years, no effort was spared to make it the distinctive gathering that it was.

Jan 1, 1938

By J. V. Gluck

In the present paper," as in earlier publications, V1'2"1 the authors present experimentally obtained relations for the free energy of solution of oxygen in various metals as a function of temperature. The relations are linear and given in slope-intercept form. The authors give values for the "probable error" of the slope and intercept, citing Birge's method17 for obtaining these quantities. Birge discussed these methods as early as the period 1929-32.25726 In Ref. 25 the probable error is defined as "the numerical value which the true error is as likely to exceed as not", i.e., 50 pct probability. Ref. 26 is even more detailed and includes a lengthy discussion of the applicability of the Gaussian distribution to experimental data. However, the use of the "probable error" has come under some question. For example, Ezekiel'~ states that "the use of the probable error tends to make the results appear rather more accurate than the standard error". Moroney28 stated (in 1951) that "the term 'probable error' was used in former times to denote 0.67450 (50 pct confidence using the normal distribution)....the term, a poor one, is now very much obsolescent. It has been said that 'it is neither an error nor probable' ". Bennett and Franklin in 1954" in discussing statistical confidence levels mentioned that "the customary use of the 5 and 1 pct levels is not completely a matter of chance; these levels probably represent a balance between the desire to be correct and the desire to be specific. Also in most people's minds the borderline between something that could possibly happen and something that is not likely to happen is somewhere in this region. Certainly 5 or 1 pct confidence limits are to be preferred to limits such as the 'probable error' which has only a 50/50 chance of including the correct value." It may readily be seen that the 95 pct confidence level, which is given by 1.960 (assuming large sample size), thus corresponds to approximately three times the "probable error". Indeed, limits of one standard deviation correspond only to about 68 pct probability. Even if we triple the tolerances given by the authors in the equations of their Table 111, the deviations do not become excessive and would not detract from their excellent results. It could then be said with a high degree of confidence (95%) that the precision of the slope and intercept values is about *3-5 percent of their absolute levels rather than the 1-2 percent implied in Table 111. This is then compatible with an earlier suggestion of Gokcen~' of a probable accuracy of 5 pct in dissolved oxygen measurements by the technique employed. Alternatively, the authors could have

Jan 1, 1967

By R. J. Cowan

In the art of cementation a controversy has been going on for years as to whether solid or gaseous carbon is the active agent in carburizing steel. More recently opinion has crystallized into a compromise to the effect that carburizing is a gaseous cementation of steel in the presence of solid carbon. The importance of this theory has a particular bearing upon the work to be described. In the art of carburizing, use is commonly made of such words as '' Catalytic" "atomic," "nascent" and "activated," in an attempt to describe the process. These words are used indiscriminately. For instance, the gas is said to be "catalytic" and carbon to be "nascent," or vice versa. In using these expressions, investigators are confirming the acceptance in their minds of the active conditions of both gas and carbon in the cementation process. Reactions at Metal Surfaces For many years attention has been directed to the consideration of reactions that occur on metal surfaces. When heated under the influence of certain metals a complex gas will be broken down and one of the constituents thereof usually found to be very active chemically in combining with the metal. The process of nitriding is an example of this type of reaction. In this case ammonia (NH3) breaks down at the metal surface and the nitrogen which is thus liberated reacts with the surface to form a nitride whereas molecular nitrogen not so liberated is inert and will not react chemically with the metal. Whatever term or terms may be used to describe such reactions, the fact remains that they are highly important and valuable in their commercial applications. Since the metal surface plays so important a part in these reactions, it is evident that any accumulation of reaction products thereon interferes seriously with the progress of the reactions. For this reason it is desirable to remove all such products as rapidly as they are formed in order to bring active gas into contact with the surface and thus facilitate the desired reactions. This is accomplished best by conducting the operation in a continuous manner, thereby causing the reacting gases to pass over the

Jan 1, 1931

By Layson, W. C.

ACCORDING to the records, Phelps Dodge made its original entry into the production of copper in the oldest copper mines of Arizona at Morenci in 1881. The ore body now being mined as the Morenci open-pit, as outlined by churn-drill holes, diamond-drill holes, and underground workings, is estimated to yield 230,000,000 tons of ore averaging 1.06 per cent copper. This development will add 2,500,000 tons of copper to the 900,000 tons already produced in the district. Some five years ago preliminary development of the ore body began, with big-scale production planned including the erection of a new treatment plant to be built near the mine. Inasmuch as the Morenci open-pit was an entirely new project this required the grading of roads, establishment of mining benches, construction of railroad grades, building of railroad tracks, erection of shops, as well as the purchase of the necessary equipment to satisfactorily and economically maintain the schedules of production forecast. Along with the preparation of the main ore body it was also desirable to mine and deliver to an experimental mill a relatively small daily tonnage of typical ore.

Jan 1, 1942

By V. V. Clark

WHEN a district is more or less primitive, and a trained mining engineer attempts single- handed to prospect it according to old standards, he generally fails. He has not the ability to live out in the open alone for months at a time and carry on with enthusiasm and determination like the old-time prospector. But the same engineer, placed in an organized group where modern prospecting methods are employed, is immediately put on his mettle and his chances of winning are greatly increased. Marsman Investments, Ltd., with headquarters in Manila, has at the present time, Sept. 4, 1937, six prospecting parties in the Netherland East Indies. Three of these groups are combing their assignments for lode mines, studying structures, developing and reaching out into veins and zones with diamond drills. The other three are searching for placer mines with pans, pits, and Empire drills. I am in charge of one group seeking commercial gold placers on the Island of

Jan 1, 1937

By H. C. George

IN 1901, the United States produced 69 million barrels of crude oil, which was 41.4 per cent of the world production. By 1931, these figures were 850 million barrels and 62.1 per cent respectively, showing over this period of thirty years an increase in the world production of 718 per cent. Over this same period, the increase in the demand for technically trained men in the industry was much greater than the increase in crude-oil production. This was because much of the increase in production was secured by the application of geology and physics to the finding of new oil fields and by .the development of engineering methods and equipment incident to drilling and producing from much greater .depths.

Jan 1, 1934

By T. A. Rickard

Slovenliness is as reprehensible in words as in clothes. Much writing that we recognize as poor in style is merely sloppy. Just as some students postpone the necessary shave or forget to change their collars, so young engineers in writing drop their articles, definite and indefinite, or omit prepositions where they are required, possibly to compensate for these they use unnecessarily The work will begin [on] Saturday. The work will begin [on] Saturday. `Influenza seriously affected many mines [during] the last three months. Flotation in America [during] the last two years has made tremendous strides. Construction of the mill started [on] August 12, 1915, at which time 75% of the excavation was completed. The idea I wish to convey is [that] there are mineral deposits to which the present law applies badly. For this reason, if there was [for] no other, the ownership of the ore below and [of] the surface above should go together. When a unit of mapping is furnished, be the unit a claim or [a] group of claims, it is necessary .. . A fully stocked store was started in Park City and all employees [were] sold merchandise on a strictly cost basis. The word "merchandise" is left without government or agreement. I suggest: ". . . and merchandise] was sold to all the employees on a strictly cash basis.". The verb `be' is serving concurrently both as a principal and as an auxiliary in the following: At first the work was interesting and [was] liked by most of the men. The sulphide ore was more complex or [was] milled at an increased cost. The failure to repeat tie auxiliary verb in successive clauses is a common error, as in The filter is filled with liquid allowed to empty, and then ignited.

Jan 1, 1931

By Rossiter W. Raymond

(Chattanooga Meeting, October, INS.) THE formal outline of Mr. Hague's life and work is embraced in the following statement, chiefly based upon data furnished by him, at my request, shortly before his death. At that time the probability that I would survive to record his death was apparently small; but I urged upon him the duty of providing, whether for me or for my successor as Secretary of the Institute, trustworthy material for the notice which somebody would some day have to write-and which might otherwise be incomplete or incorrect. Mr. Hague, with characteristic promptness and freedom from affectation, did what I asked of him; and I am therefore . able to present an authoritative sketch-concerning the details of which I shall add my own comments, and some particulars obtained from others of his personal friends. James Duncan Hague was born Feb..24, 1836, at Boston, Mass., where his father, Rev. William Hague, D.D., an eminent clergyman, then resided. After a preliminary, education in private. schools, be studied in 1854 at the, Lawrence Scientific School of Harvard University; in 1855 and 1856 at the University of Göttingen, Hanover; and from 1856 to 1858 at the Royal Mining Academy of Freiberg, Saxony. In 1859-1861 he was attached as chemist to a South Sea exploring expedition, sent by W. H. Webb, of New York, to examine Jarvis, Baker, and other islands for phosphate-deposits. After the outbreak of the Civil War, he entered the U. S. Navy, serving for a year as Judge Advocate to the fleet stationed at Port Royal, S. C. In 1863 he became Superintendent of the Albany and Boston copper-mine, in the Lake Superior region, where he was also connected with the earliest development of the Calumet and Hecla property. In 1867 he became the First Assistant Geologist in Clarence King's famous Exploration of

Feb 1, 1909

By Dr. O’Neil Thomas J., Donald W. Gentry

There are mines that make us happy, There are mines that make us blue, There are mines that steal away the tear-drops As the sunbeams steal away the dew. There are mines that have lost the ore chute faulted, When the ore's forever lost to view, But the mines that fill my heart with sunshine, Are the mines that I sold to you. -Anonymous INTRODUCTION The preceding chapters have discussed, in various degrees of detail, the primary considerations necessary to perform a cash flow analysis of a mining-related investment opportunity. Although the previous discussions regarding the manipulations, calculations, and interrelationships of the various components of the pro forma income statement were illustrated in the text, many individuals are un- familiar with the format and appearance of a final spread sheet for the evaluation of a mining property. As a result, it seems appropriate to conclude this book with an abbreviated case study of an actual mine property (currently in production) showing the cash flow analysis and some back-up data. Obviously all of the supporting data and calculations for the case study presented cannot be provided; however, reference is made to the major assumptions utilized and to the appropriate procedures employed in the calculations, as described elsewhere in the text. The problem associated with using any case study for illustrative purposes is that one tends to be overwhelmed by detail. For instance, specific costs, prices, expenditure timings, and other variable values may be challenged because they either do not conform to one's expectations or are not consistent with specific operating experiences. When this occurs the instructional value of the problem becomes obscured. The purpose of most case studies, and particularly the one presented in this chapter, is to expose the student to the methodology, procedure, and format associated with performing a cash flow analysis of a mining property. It is not to laboriously wade through the specific details associated with operating and capital cost development, mine plans, or equipment schedules. It should be noted, how- ever, that the values represented in this case study result from specific mine plans, operating procedures, equipment spreads, manpower requirements, and other en-

Jan 1, 1984

By Thomas R. Stauffer

The principle that conventional schemes for taxing petroleum or mineral resources are "inefficient" is illustrated using simulation calculations tested against an "ideal" system. Inefficiency is defined as the relative success in maximizing expected government revenues from the resources. Most systems fail because: 1) they leave oil in limbo, i.e. unproduced because of excessive fiscal burden; or 2) they unnecessarily increase the variance in the explorationist'c, rate of return by undertaxing large fields and overtaxing smaller but infra-marginal fields. This increases his discount rate and reduces taxable surplus. An "ideal" tax system is specified which maximizes government revenues while minimizing risk to the operator. Two criteria are developed: 1) the tax falls to zero on fields which yield only the minimum necessary rate of return ("marginal" fields); and 2) the after-tax present value of all fields is the same for all fields above a threshhold size. In particular, marginal fields, while contrib- uting little to expected values, do contribute to reducing variance and hence risk praemia by distributing the exploration costs over a higher probability of successful outcomes.

Jan 1, 1982

By Lyden, Joseph P.

THE Picher Mining Field, fig. 1, which lies between Baxter Springs, Kansas, and Commerce, Okla., is the most intensely mineralized and the largest zinc-lead ore producing area in the Tri-State District of Missouri, Kansas, and Oklahoma. It has a vast lateral extent of underground workings that is unequaled for the observation of the geology of zinc-lead ore bodies in sedimentary horizons; and thousands of churn drill holes in the unmined areas supplement the underground observations with useful data for the interpretation of the geology. This paper is confined to the ore deposits of the Picher mining field. The reader is referred to the bibliography for the general geology of the Tri-State district which has been ably covered by many geologists. The writer was co-author of several publications on the Tri-State district.- This paper is necessarily a repetition of parts of those publications but contains a few changes and additions on the deposition of the minerals. The parts of this paper concerning mineralization maps and pipe slump-structures are not covered in the above publications.

Jan 1, 1950

By Mäkinen, Eero

OUTOKUMPU, a large copper mine in eastern Finland, has the distinction of being one of the few important mines in the world discovered by a geologist the late Otto Triistedt, of the Geological Sur- vey of Finland, having found the out- clop in 1910 by tracing glacial ore boulders, some of which had been carried as far as fifty kilometres. As the mine had no connection with either railways or waterways and the possibilities of transport were poor, the owners first tried the Hybinette hydrometallurgical process to extract the copper. The raw ore was finely crushed, treated by a sulphatizing roast. and then leached. The resulting solution was electrolyzed, using lead anodes. This experimental plant, having a capacity of 10,000 tons (all Ions are metric tons in this paper) of raw ore and producing 300 to LEO0 tons of electrolytic copper annually, was built in 1913 and run until dis-

Jan 1, 1938

By D. W. McGlashan, K. N. Mcleod

IN the use of free bubbles with precise temperature control and continuous pH measurement, the contact angle apparatus differs from all previous equipment. Experimental procedures differ sharply from the captive bubble method1,2 of introducing the gaseous phase in the three-phase system. When freed from the tube and captured by a solid surface, a bubble more closely conforms to the spherical ideal set up by the usual mathematical analysis of surface free energy or surface tensional relationships of the forces involved. The assembled equipment, Fig. 1, departs from the usual contact angle apparatus in providing: 1) water circulation for fixing temperature, 2) instruments to measure and record pH during testing, and 3) a system for producing and using free bubbles. The apparatus allows testing over a broad range of closely controlled conditions, and the use of free bubbles gives contact angles independent of operator manipulation, which was unavoidable in the older captive bubble method. A bubble released below the specimen rises through the liquid and contacts the mineral. If the mineral is gas-avid the bubble adheres, developing a finite contact angle. Reaction cells (1), 2x33/8x5 3/16 in. ID, are of pyrex glass 5 mm thick. To prevent optical distortion, the sides are optical flats and are planed parallel to within five wave lengths of light over the entire surface. Special cement is required to withstand chemical attack and thermal shock. The cell is placed in a thermal jacket (2) made of welded aluminum. A water seal for the optical ports is made by using O-rings tightened against the flats of the cell by fine-threaded and adjustable ports, Fig. 2. In-flow water is discharged downward from a manifold located near the bottom of the cell jacket. Water overflows the weirs at each end of the cell jacket, discharging from both sides to a collecting manifold (24). A hose (26) leads the overflow water to the thermal-conditioner well (4), which is recessed to accommodate a reaction cell and two beakers (150 ml). Both the thermal jacket and the thermal-conditioner well are insulated to minimize the effects of temperature differentials. Water, discharging from the thermal-conditioner well, returns to a thermostat bath and pump (3), from which it is pumped to the thermal jacket. The thermostat bath permits temperatures to be adjusted from 1" or 2°C to 80°C and will maintain the selected temperature within 0.2ºC. An electrode support (22) groups the four electrodes (8) so that they fit conveniently into the reaction cell, Fig. 2. This assembly holds the glass electrode, the calomel electrode, the temperature-

Jan 1, 1957

By George W. Friesen

This paper presents the historical trend and de- fines the causes of drilling cost escalation in the Gulf of Mexico during the 1970's. The three major components of escalation are: 1) inflation, 2) supply-demand imbalance (demand pull) and 3) decreases in drilling efficiency. The decade was divided into three periods. During each period one component of escalation was responsible for most of the rise in costs. From 1970 through 1973 only inflation pushed costs upward. During 1974 and 1975 a supply- demand imbalance caused most of the escalation. Since 1975, decreases in drilling efficiency have produced the major component of escalation. During any one year or period of years, the sum of the three components will give the total escalation rate. The reasons why different components contribute more toward escalation during certain years than others are shown by following the timing of oil and gas price increases, the overall quality of the acreage offered each year in offshore lease sales and the resulting drilling activity.

Jan 1, 1982