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By Jacob T. Wainwright

This stove has been designed to meet the requirements of a fur nave that must be operated with either a reducing or a neutral flame ; and more particularly to make feasible the operating of re duction-furnaces with the cheaper grades of gas-fuel, which has heretofore been impracticable. In general, cheap gas-fuels result from incomplete combustion, and, being suited for further combustion, answer very well for heat ing purposes; and high temperatures may be attained with them, when they are used in conjunction with regenerative stoves. But, in operating a reduction-furnace, a high temperature is not the only requirement. It is also necessary that the fuel shall not be cansumed beyond a certain degree, in order to insure a re ducing flame for the reduction-process ; consequently, it becomes necessary to dispense with combustion as much as possible previous to the use of the fuel-gases in the reduction-furnace. Moreover, these gases must be preheated to a high degree, in order that a sufficient temperature may be maintained in the furnace; and, since this preheating cannot be accomplished by a previous, partial combustion of the gases themselves, it follows that the stoves for pre heating these gases should be heated to as high degree as it is pos sible to attain with an inferior fuel. This result can best be accom plished by complete combustion of the heating gases, and is further facilitated by preheating all of the air and gas used for this com plete combustion. It is more particularly desirable to preheat the air, since the combustible gases used may generally be obtained directly from the furnace, or gas-producer. The reducing gases, escaping from a gas-fuel reduction-furnace, are capable of considerable further dilution with air to secure com plete combustion, and consequently may be utilized for heating the stove to a high temperature, provided the air be sufficiently preheated.

Jan 1, 1889

By Norman D. Fitz Gerald

THE growth of domestic requirements for motor fuel has been phe-nomenal, rising year after year in a fashion almost unique among com-modities, resisting depressions and forging rapidly ahead in times of prosperity. Consumption advanced from 226 millions of barrels in 1925 to 522 millions of barrels in 1938; or 130 per cent. The economic influ-ences generating and sustaining this demand are of vital concern to the petroleum industry. The general factors affecting utilization of motor fuel are well known but it is the purpose of this paper to employ the recently developed technique of economic dynamics to describe them mathematically. Such problems in economic analysis are complicated by the freedom of all the variables to fluctuate, their mutual interdependence, changing incidence upon one another, and the nonquantitative character of some of them. Economic quantities and relationships, unlike those of the physical world, are continuously changing and this dynamic characteristic is both a distinguishing and confusing feature in economic research. The com-plexities of the problems require application of the analytical devices of mathematical statistics to uncover the probable relationships between factors. The procedure employed is to formulate a logical relationship linking the dependent to the independent variables, and then simul-taneously, rather than sequentially, determine their separate effects by multiple correlation. This transformation of common knowledge to quantitative terms makes it possible to measure the probable effects of changing conditions upon requirements, assisting in the sound interpreta-tion of economic policies. The utility of the results of such dynamic analysis is in sharp contrast to the sterility of the trends and other simple empiricisms of descriptive statistics. It is not intended in this study to throw light on the reasons why any motor fuel at all is consumed; but to discover relationships explaining why more was consumed at one time than at another. Specifically the prob-lem is confined to the measurement of the influences of statistically

Jan 1, 1940

By Leroy Gardner

EVERY reader of this paper is well aware of the fact that the prolonged inhalation of large amounts of free silica dust results in fibrosis of the lungs, and that other inorganic dusts, except those of asbestos and the mineral poisons, are thought to be relatively harmless. But probably few have had opportunity to visualize the effects of silica, asbestos and other minerals upon living tissues. The ideal demonstration would be based upon sections of lungs from human beings that had inhaled com-parable concentrations of different dusts for a unit period of time. Such material is generally difficult to obtain and in some instances is of ques-tionable value because the subject has been exposed to more than one kind of dust. A demonstration could be prepared from the lungs of animals. However, so many months or even years are required to com-plete the exposure to each kind of dust that enough material has not been accumulated. For a general survey of the action of different types of dust, I am therefore compelled to use the tissues of animals that have been injected with suspensions of dust particles. The injection method offers certain advantages. The quantity, the particle size and the state of dispersion can be controlled with sufficient accuracy so that the tissue responses to different minerals can be accu-rately compared. The method insures contact between the tissues and the mineral particles; protective mechanisms, which may prevent the inhalation of certain types of foreign body, never come into play. If the pathway of injection be one that minimizes nonspecific injury, the tissue responses may simulate those produced by inhalation but they develop somewhat more rapidly. It should always be remembered that injection methods merely demonstrate the capacity of various kinds of minerals to provoke reaction in the tissues; whether the same substances are inhaled from atmospheric suspension and accumulate in the lungs in dangerous quantities can be demonstrated only by inhalation.

Jan 1, 1938

By J. Pohlig

It is with more than ordinary pleasure that I have complied with the request of the President of the Verein Deutscher Eisenh?tten leute, to read before this meeting and in this country a paper on a system of transport by wire ropeways which, during the past twenty years, has advanced with rapid strides in Europe, and more partic ularly in Germany. America, with its immense network of railways and water communications, should offer peculiarly favorable oppor tunities for the introduction of these ropeways as feeders, more par ticularly in the mining districts, where, as in Europe, a hilly or mountainous region frequently opposes serious obstacles to the em ployment of surface railroads. The importance of the aerial ropeway as a factor in the develop ment of mineral resources deserves the consideration of every mining engineer. As a case in point, the rich iron-ore of the sierra de Bedar in southern Spain, would probably remain untouched to this day but for an aerial ropeway, 15.6 km. (9 3/4 miles) long, which con nects the mines with the shore of the Mediterranean near the town of Garrucha, affording cheap carriage to the nearest shipping point. A railway would have cost about $480,000 (£100,000), but such a heavy outlay would have more than absorbed all prospective profits on the sale of ore. As the aërial ropeway could be built for a little more than one-fourth of that amount, or $124,800 (£26,000), its erection furnished the successful solution of a profitable mining enterprise. This line has been in satisfactory operation for over two yearn; its details will be referred to later. But beside their importance as feeders, ropeways are valuable as a means of conveyance between works and distant warehouses, and between separate buildings in the same works. Their rapidly spreading introduction for such purposes indicates how keenly the necessity of effecting economies is felt under the stress of an everaccentuating competitiop.

Jan 1, 1891

By John A. Church

Jan 1, 1903

By B. C. Allen, R. I. Jaffee, D. J. Maykuth

Wrought unalloyed iodide chromium, containing 39 to 95 ppm total interstitials, has a tensile transition temperature of —15°C. Re crystallizing at 1100°C causes the transition to rise to 90° to 390°C, depending on the purity, grain size, and cooling rate after annealing. At about the 100 ppm level, individual additions of carbon or nitrogen raise the transition of both wrought and recrystallized chromium by as much as 210°C, while oxygen has a lesser effect, and sulfur essentially no effect. High transitzon temperatures are exhibited by recrystallized and quenched chromium, and appear to be associated with the amount and distribution of inter-stitials. The latter cm be either in solid solution or in the form of precipitates within the grains or at the grain boundaries. Quench hardening in chromium is primarily caused by nitrogen. The hardness, re crystallization, and grain growth behavior of chromium with and without impurity additions were also investigated. BECAUSE of low density and good oxidation resistance, chromium-base alloys are potentially useful for elevated-temperature applications. The main deterrent to the use of chromium in structural applications is its lack of low-temperature ductility, especially in the recrystallized condition. Accumulated evidence has shown that the ductility of chromium is sensitive to purity. The objective of the current study was to determine the effect of common nonmetallic impurities on the tensile properties of high purity chromium. The separate effects of carbon, oxygen, nitrogen, and sulfur additions on the ductile-to-brittle transition were evaluated for wrought and recrystallized material after various cooling rates. EXPERIMENTAL WORK Unalloyed iodide chromium and seven impurity alloys containing individual carbon, oxygen, nitrogen, or sulfur additions were prepared in rod form. Nominal additions were 100 ppm C, N, and S, and 100 to 500 ppm O. The additions were about a factor of ten greater than the residual amounts in the unalloyed material. The seven alloys and two unalloyed compositions were consolidated into four-pound ingots by conventional consumable arc melting of pressed and welded electrodes under 0.5 atm of helium. Impurity additions were made to the electrode in the form of crushed master alloys. The impurity alloys were double melted to improve homogeneity. The ingots were broken down by extrusion at 1200°C in evacuated steel cans at a reduction ratio of 18 :1, using a molten borosilicate glass lubricant and a ram speed of 80 in. per min. The cans were removed by acid pickling, and the chromium core ground free of surface undulations. Cut lengths were sheathed in mild steel and swaged at 900°C until the core was about 1/4 in. in diam. Two additional 15-lb ingots of unalloyed chromium (ICr-3, ICr-4) were prepared by arc melting and broken down by 26:1 extrusion at 1250°C without a steel can. The billet was lubricated and protected from contamination by a coating of molten glass. The resulting extrusion was then sheath swaged as described previously. Representative chemical analyses of each of the materials, after removal of a 10-mil surface layer

Jan 1, 1963

By J. A. Fellows, Earnshaw Cook, H. S. Avery

THE increased use of heat-resistant alloys (26 per cent Cr, 12 per cent Ni; 16 per cent Cr, 35 per cent Ni; 12 per cent Cr, 60 per cent Ni; etc.) in recent years has been accompanied by continued demands by the consumer for improvement in properties. The manufacturers of these materials, of necessity, have resorted to more critical studies of the basic causes of variations in fundamental properties. To keep pace with the need for augmented information, previous techniques of investigation have been refined and new test methods and instruments created. It is the purpose of this paper to describe the apparatus, experimental technique and precision of measurement that were employed in the exploration of properties of heat-resistant alloy presented in a companion paper.? The detailed precautions in experimental procedure essential for attainment of accurate and comparable data at elevated temperatures cannot be too highly emphasized. THE CREEP TEST Since the fundamental concepts of creep testing have been recognized for the past 20 years, present interest is restricted to refinements in equipment and experimental procedure. The creep-test laboratory constructed for the American Brake Shoe and Foundry Co. is designed to permit 1000-hr. tests in the temperature range of 1200° to 2200°F. with a choice of applied stress extending from 50 to 50,000 lb. per sq. in. in increments of 50 lb. per sq. in. To simplify the calculation of weight combinations, the loading beams (Fig. I) are provided with counterweights to eliminate the tare. The precision of the knife-edges (10.1 ratio) is such that a 10-gram weight placed on the upper specimen grip will be exactly balanced by a 1-gram weight attached to the loading shackle. Check of the loading weights proved the maximum error to be 0.06 per cent. Axial alignment is provided by crossed knife-edges in the grip seats. The furnaces are similar in design to those of Crane and Company, Battelle Memorial Institute, and the U.S. Steel Corporation. An 80 per cent Pt, 20 per cent Rh No. 19 B. and S. gauge wire is used as the heating element. The details of construction are shown in the radiograph reproduced in Fig. 2. The windings are held in place on an alundum tube with alundum cement; the distribution of turns is adjusted to give a maximum temperature gradient of ± 1°F. over a 4-in. gauge length (Fig. 3). To avoid sharp temperature differentials at the ends of the test section, the length of the furnace is four times the gauge length. Sixteen-inch coupons are used to reduce the temperature of the threaded

Jan 1, 1942

Jan 1, 1905

By James R. Cudworth

OUR colleges and universities have met many difficulties during the past year. From a period of small enrollments and depleted faculties, the educational institutions have passed quickly to a period of the largest enrollments in their history with inadequate facilities and staffs. The results of the shortsighted policy of the Selective Service system which drained the technical schools and universities of many of the students who were potential teachers are now being felt. The movement of faculty members into positions in industry during the war years has resulted in many of them forsaking permanently the educational field for the higher salaried positions they now occupy. Competition is keen between the educational institutions, and between the institutions and industry, for technically trained men. Dean Holbrook's statement in last year's annual review that he thought it would take three or four years to restore our engineering departments to their former level in quality of instructors is even more convincing today. Somehow, the institutions must not only reach their former level in quality of instruction but they must also increase the quantity of their staffs to meet the demands of the ex-service men and the high school graduates for engineering education. The enrollments in the mineral industry fields of mining, metallurgical, geological, petroleum, and ceramic engineering, although greatly increased, are not expanding as much as in the more widely known fields of electrical, mechanical, aeronautical, and civil engineering. In fact, many educators are tremendously worried about the segregation of so many young men in a relatively few fields while the needs of others will remain unanswered.

Jan 1, 1947

Jan 1, 1901

By Richard J. Robbins

Mechanical moles have developed through a tedious process of evolution. At times it has seemed that tunnel borers have been subject to the same Darwinian rules of evolution as their zoological namesakes who, despite their efficiency, are highly specialized and still restricted to soft soil conditions near the surface of the ground. HISTORICAL HIGHLIGHTS The Robbins Co. began its work in this field in 1947 with the development of a twin-bore continuous coal miner. Although these machines were used primarily in coal, two of the early prototypes were used to bore tunnels through shale. Disk cutters were first used on these machines and showed promising results as core breakers between drag-bit kerfs. In 1953, James S. Robbins and Assocs. undertook the development of a 25-ft 9-in.-diam circular tunnel borer for Mittry Construction Co. to be used at Oahe Dam in South Dakota (Fig. 1). This is believed to be the first rock tunnel-boring machine built since the end of the 19th century when short sections of the Channel tunnel were successfully bored in chalk from both the English and French shores. Another Oahe Dam machine was built in 1955, and then a series of three small-diameter machines for the company's first real experience with medium-hard and hard rock (Fig. 2) None of these three could be considered a success, although they laid the groundwork for the success that followed. Interbedded shale and limestone in Pittsburgh and hard limestone in Chicago quickly pointed up the weaknesses in these machines which were used by Perini, Dravo, and Healey. Among the problems were the high breakage rate of tungsten-carbide drag bits, too much flexibility in the drive shafts, failure of high-pressure hydraulic systems, chain-conveyor failure, and general lack of rigidity and strength. In 1956 another attempt at medium-hard and hard rock-boring proved this time to be a success and a significant turning point in the development

Jan 1, 1970

Jan 1, 1942

On the Art of Metallography (Howe Memorial Lecture), by F. F. Lucas; Beneficiation of Iron Ore. Abstract of paper by C. E. Williams followed by Round Table Discussion; A Statistical Analysis of Blast-furnace Data, by R. 8. McCaffery and R. G. Stephenson; Air Discharge of Circular Tuyeres, by R. S. McCaffery and D. E. Krause; Open-hearth Steel Process as a Problem in Chemical Kinetics. by E. R. Jette; Carbon-oxygen Equilibrium in Liquid Iron, by H. C. Vacher and E. H. Hamilton; A Thermodynamic Study of the Phasial Equilibria in the Bystem Iron-carbon (Abstract), by Yap, Chu-Phay; Influence of Dissolved Carbide on the Equilibria of the System Iron-carbon (Abstract), by Yap, Chu-Phay; Inclusions and Their Effect on Impact Strength of Steel, I and 11, by A. B. Kinzel and W. Crafts: Method for Electrolytic Extraction of MnO, MnS, FeS and Si02, Inclusions from Plain Carbon Steels, by G. R. Fitterer; Permanent Growth of Gray Cast Iron, by W. E. Remmers; Some Notes on Blue Brittleness, by L. R. van Wert; Austenite-pearlite Transformation and the Transition Constituents, by A. Sauveur; Age-hardening of Austenite, by F. R. Hensel; Transformational Characteristics of Iron-manganese Alloys, by H. Scott; Composition Limits of the Alpha-gamma Loop in the Iron-tungsten System, by W. P. Sykes; Magnetic Properties Versus AUotropic Transformations of Iron Alloys, by T. D. Yensen and N. A. Ziegler; Dilatometric Study of Chrome-nickel-iron Alloys, by V. N. Krivobok and M. Gensamer; Low-carbon Steel, by H. B. Pulsifer; Bright Annealing of Steels in Hydrogen, by F. C. KeUey; Development of Continuous Gas Carburieing, by R. J. Cowan. Transactions, Institute of Metals Division, 1931. 500 pages. Index. Papers and discussions presented before the Division at Chicago, Sept. 22-26, 1930 and New York, Feb. 16-19, 1931. X-ray MetallograpIhy: X-ray Determination of Alloy Equilibrium Diagrams (Annual Lecture), by A. F. Westgren; Suppressed Constitutional Changes in Alloys. by G. Sachs; Texture of Metals after Cold Deformation; by F. Wever. Theoretical Metallurgy: Studies upon the Widmanatitten Structure. I.—Introduction. The Aluminum-eilver System and the Copper-silicon System; by R. F. Mehl and C. S. Barrett; Studies upon the Widmanstatten Structure, 11.—The Beta Copper-einc Alloys and the Beta Copper-alumnum Alloys, by R. F. Mehl and 0. T. Mareke; Application of X-rays in the Manufacture of Telephone Apparatus, by M. Baeyerts; Thermal Conductivity of Copper Alloys. 11.—Copper-tin Alloys; 111.—Copper-phosphorus Alloys, by Cyril Stanley Smith; Thermodynamic Study of the Equilibria of the Systems Antimony-bismuth and Antimony-lead, by Yap, Chu-Phay. Ganeral: Cemented Tungsten Carbide; a Study of the Action of the Cementing Material, by L. L. Wyman and F. C. Kelley; Influence of Casting Practice on Physical Properties of Die Castings, by C. Pack; Fabrication of the Platinum Metals, by C. S. Sivil; Effect of Certain Alloying Elements on Structure and Hardness of Aluminum Bronze, by 9. F. Hermann and F. T. Sisco. The WorkinG oF Metals: Metal Working in Power Presses, by E. V. Crane; Forming Properties of Thin Sheets of Some Nonferrous Metals, by W. A. Straw, M. D. Helfrick and C. R. Fischrupp; Die Pressing of Braas and Copper Alloys, by J. R. Freeman. Jr.; Plasticity of Copper-sina Alloys at Elevated Temperatures. by A. Morris: Directional Properties in Cold-rolled and Annealed Copper, by A. Phillips and E. 9. Bunn; Effect of Combinations of Strain and Heat Treatment on Properties of Some Age-hardening Copper Alloys by W. C. Ellis and E. E. Schumacher; Constituents of Aluminum-iron-silicon Alloys, by W, L. Fink and K. R. Van Horn; Equilibrium Relations in Aluminum-antimony Alloys of High Purity, by E. H. Dix, Jr., F. KeUer and L. A. Willey; Equilibrium Relations in Aluminum-magnesium Silicide Alloys of High Purity, by E. H. Dix. Jr., F. Keller and R. W. Graham; Constitution of High-purity Aluminum-titanium Alloys, by W. L. Fink, K. R. Van Horn and P. M. Budge; Experiments on Retarding the Age-hardening of Duralumin, by E. H. Dix. Jr. and F. KeUer; Aluminum-silicon-magnesium Casting Alloys, by R. S. Archer and L. W. Kempf; Modulurr of Elasticity of Aluminum Alloys, by R. L. Templin and D. A. Paul; Quenching of Alclad Sheet in Oil, by H. C. Knerr.

Jan 1, 1931

By C. S. Matthews, J. L. Mahaffey, W. M. Rutherford

This paper gives results of an experimental study of the sweep efficiency of a miscible displacement in a five-spot. The study was carried out in a parallel-plate glass model in which effects of diffusion were scaled at or near the molecular diffusion level. The experiments show that very early breakthrough (25 to 35 per cent of pore volume (PV) injected) may be expected in miscible floods because of the unfavorable viscosity ratio. However after 1 PV of displacing fluid is injected, the sweep rises to a reasonable value (50 to 60 per cent). Photographs show that small slugs of less than 10 per cent of PV tend to dissipate before breakthrough. A minimum slug size of 15 per cent of PV would appear to be necessary even in a relatively homogeneous formation. Presence of a slug whose viscosity is inter-mediate between that of oil and gas increases the sweep efficiency of the oil-gas system. In a typical system the sweep at breakthrough rose from 26 to 37 per cent of PV for a 25 per cent slug. The increase in sweep brought about by use of a large slug could well pay for the extra deferment cost of the additional slug material. INTRODUCTION Most miscible displacement processes involve the displacement of oil with fluids of much lower viscosity and density. The displacement process at these adverse viscosity and density ratios is dominated by instability phenomena, i.e., viscous fingers and gravity tongues. These phenomena have highly adverse effects on oil recovery. Although a number of laboratory studies have been made to determine the effect of adverse viscosity ratios on five-spot sweep patterns,l,2 the scaling of diffusion effects is uncertain. In the series of scaled model studies reported herein, an attempt was made to scale diffusion. Model studies of miscible displacements in which molecular diffusion predominates are per-mitted by controlling the parallel plate spacing which reduces convective mixing to arbitrarily small levels. To decide how this scaling relates to any particular Geld displacement necessitates an estimation of diffusion effects for the natural rock being considered and conditions under which displacement will be conducted. The approach normally taken is to extrapolate data obtained from stable miscible displacements performed in the laboratory, such as those presented by Brigham et al.3 The validity with which such an extrapolation can be applied to an unstable flow system has yet to be established. If this approach is accepted, a family of oil recovery curves can be generated for a single viscosity ratio based on Brigham's observation that the magnitude of the dispersion coefficient is dependent, among other things, upon specific rock properties. Objective of our test was to define the lower limit of this range by presenting the case where dispersion effects were reduced to the molecular diffusion level in both the transverse and longitudinal directions.

Jan 1, 1967

Jan 1, 1942

Jan 1, 1968

The paragraphs quoted, regarding Mr. Hoover's appointment as chairman of the newly organized food board of the United States, are taken from the editorial page, of the New York Times for April 13: ?The country is fortunate in commanding the services of Herbert C. Hoover as Chairman of the newly established Food Board. This is n, problem of first importance. Few realize the extent to which American food stuffs will enter into the decision of the war, and it is doubtful if it has occurred to many minds as yet that we shall have to deny ourselves what we have regarded as necessaries in order to keep our European allies supplied. " Mr. Hoover is one of the leading mining engineers of the country. At the outbreak of the war he put his private affairs aside to become the head of the American Commission for Relief in Belgium. He has had an experience that perhaps no other man has ever had, covering the raising of money and the purchase and distribution of supplies on a large scale; He has been brought into close relations with the neutrals and the belligerents on both sides. By them all he is recognized is one of the best executives brought to the fore by the mar. Mr. Hoover is in a position now to place abilities and experience at the service of his country. He will come back with comparative data that will enable him to measure resources and deficiencies accurately. This appointment gives renewed assurance of our Government's grasp of the problems of war and its resolve to apply, business principles to their solution."

Jan 5, 1917

By G. R. Fitterer

BY means of the C-SiC thermocouple1, liquid metal temperatures have been found to vary much more than was previously supposed, and fortunately these variations can be directly associated with some of our former knowledge which combined to form the "art" of liquid-metal manipulation. COMMERCIAL DEVELOPMENT OF THIS DEVICE Several types of installations are operating in different plants. There are so many variables in steel plants in regard to operation, pro-cedure, arrangement of pouring platforms, ladles, etc., that most of the installations now in service in this country are "tailor-made"; never-theless, it is felt that satisfactory gains have been made inasmuch as each installation has indicated some effect of temperature upon the metal-lurgical operation, and has pointed the way toward technical and finan-cial benefits. In most cases, it has been necessary to accumulate the temperature data until sufficient metallurgical information is available for the drawing of conclusions. When mechanical difficulties have been eliminated, a distinct correlation of these factors has been obtained. The installations now in service. are used for the determination of temperatures in the basic open-hearth furnace prior to tapping and in ladles from both acid and basic furnaces prior to pouring. Some of the installations are in shops making the higher priced steels; others are in "tonnage shops." The errors of human element, smoke screens and emissivity corrections connected with the use of the optical pyrometer do not affect the C-SiC thermocouple readings. The accuracy of the C-SiC- thermocouple and the temperatures measured are discussed later in this paper.

Jan 1, 1936

By Franklin J. Stermole

INTRODUCTION Economic evaluation of an open pit mine is similar to the economic analysis of any major investment project in any industry. It requires (1) taking into account all of the costs and revenues that are estimated to be incurred over the economic life of the project; (2) crediting the project with all the tax savings and tax credits that will be realized over the project life from tax deductions and credits related to various project costs; (3) charging the project with all taxes to be paid on taxable income over the project life; and (4) properly accounting for the time value of money for all project costs, revenues, taxes, tax savings, and tax credits when making the overall project economic evaluation. These considerations must be taken into account for any valid method of economic analysis such as discounted cash flow rate of return (DCFROR) or net present value (NPV) analyses. All economic analyses fall into one of two categories. ( 1 ) comparison of income-producing alternatives, or (2) comparison of service-producing alternatives. The analysis of alternatives in either of these categories can be made by using correctly any of five basic economic evaluation approaches which are. ( 1 ) present value, annual value, (3) future value, (4) rate of return (ROR) , and (5 ) break-even analysis. Of these evaluation techniques, DCFROR and NPV analyses are used most widely for evaluating income-producing alternatives while present worth cost and equivalent annual cost analyses are used most often for the evaluation of service-producing alternatives. In this chapter income- producing alternative analysis is emphasized, so DCF- ROR and NPV are utilized for evaluating the case studies presented.

Jan 1, 1979

By Samuel S. Wyer

The magnitude and economic importance of the problem of correctly valuing natural-gas leaseholds become evident when me consider that: (a) Natural gas is handled in 55 per cent. of the gas distributing plants in the United States. (b) Present known natural-gas acreage forms 47 per cent. of the total known mineral-land acreage in the United States. (c) Five acres of land are now required to protect and maintain continuous service to each of the 2,000,000 domestic natural-gas consumers in the United States. (d) The cost of acquiring and maintaining this acreage of an expendible resource represents a substantial part of the cost of the natural-gas service to the consumer. (e) "The right of a citizen by means of his ownership of or his mining leases on land to draw gas from beneath its surface is property and sometimes valuable property."' A large number of other court decisions have established the basic legal principle that the right to drill for gas within a given area constitutes an interest in the land itself, and is necessarily an exclusive property right. Definition of Vested Interests or Rights "Vested interests are economic interests which are legally recognized to be such that they cannot be impaired by public action, directly or indirectly, without indemnification. Vested interests are largely property interests. The recognition of an interest as a vested interest gives it some of the attributes of property, and by American courts it would be comprised in their very inclusive concept of property. Otherwise than through property, vested interests generally arise through contract."

Jan 1, 1917