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A full account of the wonderful Arizona meeting will be published in the December Bulletin. For the strenuous, interesting, and altogether happy week, we express our hearty thanks to those marvels of energy and thoughtfulness, the members of the local committees in Texas, New Mexico and Arizona. In this number we publish the discussion resulting from the technical session on "Flotation." Because of the timeliness of the subject, this session's discussion was transcribed first and sent to the contributors, and, thanks to their promptness in revising, we are able to print it in this issue.

Jan 10, 1916

By J. S. Li, J. C. Edwards

A prediction is made of the airflow at the Bureau of Mines Lake Lynn Laboratory with a ventilation computer program that accounts for fan-driven forced ventilation and temperature-induced natural ventilation. There was substantial agreement between measured and predicted airflow rates. The capability of the program is demonstrated as a planning aid for ventilation under emergency conditions in a multilevel coal mine. Smoke spread in a multilevel mine is analyzed following the occurrence of two events, the failure of the main exhaust fan and the development of a fuel-rich fire in a passageway.

Jan 1, 1983

Stripping of the Exotica open-pit mine, which is proceeding at about 120,000 tpd, is dwarfed by its proximity to the 500-million-ton Chuquicamata tailing pile. The excavating work is being carried on smoothly and efficiently and, as of the end of October, accounts for the removal of 77 million tons of total material of which some 200,000 tons is stockpiled ore. Diamond drilling has outlined an orebody 5900 ft long and 3400 ft wide containing an estimated 153 million tons of ore at 1.35% recoverable copper based on 80 % extraction.

Jan 11, 1969

By W. S. Hungerford

As several papers on the subject of mining in soft ore-bodies have recently appeared in the Transactions and in the Engineering and Mining Journal, the following brief account of the method introduced by the writer at Low Moor, Va., may be of interest. It is in some respects similar to the system at Longdale, Va., referred to in Mr. Rothwell's paper, though differing in many of its details. That system has been employed by the Longdale Iron Company for many years, and to that company the writer is indebted for many

Jan 1, 1889

By C. G. Fink, G. L. Putnam

The dissolution of gold by cyanide solutions was studied by determining the time required for the solvents to dissolve gold leaf. Minute traces, even 0.5 ppm, of sulphide ion retard the dissolution of gold, and this behavior cannot be accounted for by the presently accepted hypotheses involving oxygen-depletion or thiocyanate formation. On the other hand, traces of the salts of lead, bismuth, mercury, and thallium considerably accelerate the dissolution. The beneficial effect of lead is dependent upon the pH and cyanide ion concentration of the solution.

Jan 9, 1950

By M. E. Gershon

A mixed-integer formulation of the mine scheduling problem is discussed and applied for the purpose of optimizing both the mine production sequencing and the mill blending and processing problem simultaneously. Previous attempts at solving these problem separately, although successful, fail to take into account the interrelationships between these problems. Project structure selves as the outline of this paper Generalized in its organization, this concept is useful for long, intermediate, and short range scheduling. Actual applications that show the concept also is applicable to mining a variety of ore are mentioned.

Jan 1, 1984

Accurate modeling of the semivariogram is an extremely important step in the geostatistical analysis of mineral deposits. Automatic fitting of a mathematical model is often possible but not necessarily desirable. Significant geologic and statistical information must be taken into account in the fitting process, which is not always available to the computer. Manual model fitting is, on the other hand, extremely time consuming. Interactive graphics are best suited to optimize the process. Many interactive methods are described, which are adapted to modeling semivariogram in one-, two-, or three- dimensional environments.

Jan 1, 1985

By Steven T. Mitchell

The introduction of Vertical Crater Retreat (VCR) Stoping at the Homestake Mine in Lead, SD, constitutes a major advance in Homestake Mining Company's efforts to improve productivity and reduce costs through under- ground mine mechanization. The work to date indicates that Vertical Crater Retreat Stoping is one of the safest methods of underground hardrock mining today, and is competitive with all other forms of stoping in terms of cost and productivity. Homestake anticipates that VCR stoping will account for approximately 35% of the total mine production in 1981.

Jan 1, 1981

By Brian R. Castle, James J. Scott

INTRODUCTION Referring to a ground support system as a 'band-aid' borders on getting cute, but the application of cable slings in U.S. mining is somewhat analogous. Where problems in the roof or rib require additional support, the versatile cable sling is the answer in a variety of conditions. To fully understand how and why cable slings are used today we must briefly review their development history. Much of the thrust over the last five to seven years in ground support fixtures has been the development of hybrid systems. Taking the best of two or more existing roof bolt fixtures and marrying them into a new fixture which exhibits the good characteristics without the bad of the parent systems. Resin point anchored mechanical bolts, continuous threaded rebar bolts, and others have all be- come important fixtures in rock mass stabilization. HYBRID GROUND SUPPORT SYSTEM The cable sling system is also a hybrid, both in its parentage and in its ground support characteristics. See figure 1. Cable slings combine the techniques of cement. grouting high-strength cables, Friction Rock Stabilizers, and truss-like suspension into a versatile and high- strength ground support system. 1/2" high-strength cable is cement grouted in place in a manner similar to pre-

Jan 1, 1983

By J. E. Graham, A. H. Glenn

Oil operators engaged in drilling on the Continental Shelf of Louisiana and Texas are in agreement that adverse weather and wave action are two of the greatest hazards to the safety and efficiency of their work. It was ami-pated when the offshore operations commenced that such would be the case, and experience to date has verified this assumption. Because atmospheric conditions and wave action involve tremendous amounts of energy it is highly unlikely that it will be possible to control any but the most localized weather and wave phenomena within the foreseeable future. Thus. as long as the offshore operations involve the movement of small craft and barges over exposed waters, and the transfer of personnel and heavy equipment from these craft to either fixed structures or larger craft at close quarters, the weather and wave problem will remain. Taking into consideration the persistence of the wave and weather problem and the improbability of achieving a direct solution, the Humble Oil & Refining Company, in planning its offshore campaign investigated the possibility of forecasting wave and weather conditions in order to provide warnings of dangerous conditions and increase efficiency in day-to-day planning of work. It was recognized that predictions of wave and weather conditions based on meteorology and oceanography, both geophysical sciences, are not 100 per cent accurate and application of forecasts in the offshore work was dependent on whether they provided information which was sufficiently greater in accuracy than the layman's guess to be worth the expenditure involved. During World War 11. meteorology and oceanography were used with success in reducing danger resulting from environmental conditions and increasing efficiency of operations exposed to the elements. This success was partially the result. of improvement in the scientific techniques involved and the procurement and distribution of observational data, and partially due to the large scope of the military operations which meant that a reduction of losses of a relatively small percentage of the total cost amounted to a large figure expressed in terms of dollars. Since the offshore drilling involves an extremely large financial investment, it was considered that the experience of the Armed Services in successfully employing meteorology and oceanography might be duplicated in the oil industry. In addition. the oil industry's successful experience in utilizing seismology, geology, and terrestrial magnetism; all geophysical sciences, indicated that meteorology and oceanography, also of the family of geophysical sciences and sharing their scientific assets and liabilities, might be profitably put to use. Since the immediate problem involving the sciences of meteorology and oceanography in the offshore campaign is wave action, a program was inaugurated within the Humble Oil & Refining Company during June 1947. the purpose of which was to ascertain the applicability and limitations of wave forecasting in the offshore campaign. A summary of the effective wave forecasting techniques developed during the war was prepared in the form of a forecasting manual for the Continental Shelf off Grand Isle, Louisiana, by Bates and Glenn. After completion of this manual, experimental forecasts were prepared daily over a two-month period by Graham and Thompson to determine the accuracy of the forecasts. It was considered that the accuracy of the experimental forecasts justified a more extensive test under actual operating conditions in the offshore work and the firm of A. H. Glenn and Associates was set up under the sponsorship of the Humble Oil & Refining Company to work with the Humble Grand Isle District in providing forecasts of wave and weather conditions over a one-year period. This paper discusses the service now provided to the Grand Isle District, its applicability and limitations. TYPE OF FORECASTS REQUIRED It was apparent before the commence-mence of the forecasting service that a specialized type of forecast was required. Many of the weather elements of interest to the general public, such as rain and temperature, are of minor concern to offshore operators. On the other hand, such elements as wave height and wind speed and direction are of great concern in the offshore operations since variations in wave height of a few feet in the critical range divide safe from hazardous working conditions. To be of utility. a forecasting service for the offshore work must provide detailed forecasts of the elements which affect the operation. With this in mind, it was decided that forecasts would include the following information: average wave heights to the nearest foot, wind speeds within a range of approximately 5 miles per hour, and wind directions within 221 degrees. Since the procedure for forecasting these elements involves thorough analysis of weather data, it was decided to include a generalized forecast of weather conditions such as rain and cloud cover, although these are of secondary importance.

Jan 1, 1949

By A. H. Glenn, J. E. Graham

Oil operators engaged in drilling on the Continental Shelf of Louisiana and Texas are in agreement that adverse weather and wave action are two of the greatest hazards to the safety and efficiency of their work. It was ami-pated when the offshore operations commenced that such would be the case, and experience to date has verified this assumption. Because atmospheric conditions and wave action involve tremendous amounts of energy it is highly unlikely that it will be possible to control any but the most localized weather and wave phenomena within the foreseeable future. Thus. as long as the offshore operations involve the movement of small craft and barges over exposed waters, and the transfer of personnel and heavy equipment from these craft to either fixed structures or larger craft at close quarters, the weather and wave problem will remain. Taking into consideration the persistence of the wave and weather problem and the improbability of achieving a direct solution, the Humble Oil & Refining Company, in planning its offshore campaign investigated the possibility of forecasting wave and weather conditions in order to provide warnings of dangerous conditions and increase efficiency in day-to-day planning of work. It was recognized that predictions of wave and weather conditions based on meteorology and oceanography, both geophysical sciences, are not 100 per cent accurate and application of forecasts in the offshore work was dependent on whether they provided information which was sufficiently greater in accuracy than the layman's guess to be worth the expenditure involved. During World War 11. meteorology and oceanography were used with success in reducing danger resulting from environmental conditions and increasing efficiency of operations exposed to the elements. This success was partially the result. of improvement in the scientific techniques involved and the procurement and distribution of observational data, and partially due to the large scope of the military operations which meant that a reduction of losses of a relatively small percentage of the total cost amounted to a large figure expressed in terms of dollars. Since the offshore drilling involves an extremely large financial investment, it was considered that the experience of the Armed Services in successfully employing meteorology and oceanography might be duplicated in the oil industry. In addition. the oil industry's successful experience in utilizing seismology, geology, and terrestrial magnetism; all geophysical sciences, indicated that meteorology and oceanography, also of the family of geophysical sciences and sharing their scientific assets and liabilities, might be profitably put to use. Since the immediate problem involving the sciences of meteorology and oceanography in the offshore campaign is wave action, a program was inaugurated within the Humble Oil & Refining Company during June 1947. the purpose of which was to ascertain the applicability and limitations of wave forecasting in the offshore campaign. A summary of the effective wave forecasting techniques developed during the war was prepared in the form of a forecasting manual for the Continental Shelf off Grand Isle, Louisiana, by Bates and Glenn. After completion of this manual, experimental forecasts were prepared daily over a two-month period by Graham and Thompson to determine the accuracy of the forecasts. It was considered that the accuracy of the experimental forecasts justified a more extensive test under actual operating conditions in the offshore work and the firm of A. H. Glenn and Associates was set up under the sponsorship of the Humble Oil & Refining Company to work with the Humble Grand Isle District in providing forecasts of wave and weather conditions over a one-year period. This paper discusses the service now provided to the Grand Isle District, its applicability and limitations. TYPE OF FORECASTS REQUIRED It was apparent before the commence-mence of the forecasting service that a specialized type of forecast was required. Many of the weather elements of interest to the general public, such as rain and temperature, are of minor concern to offshore operators. On the other hand, such elements as wave height and wind speed and direction are of great concern in the offshore operations since variations in wave height of a few feet in the critical range divide safe from hazardous working conditions. To be of utility. a forecasting service for the offshore work must provide detailed forecasts of the elements which affect the operation. With this in mind, it was decided that forecasts would include the following information: average wave heights to the nearest foot, wind speeds within a range of approximately 5 miles per hour, and wind directions within 221 degrees. Since the procedure for forecasting these elements involves thorough analysis of weather data, it was decided to include a generalized forecast of weather conditions such as rain and cloud cover, although these are of secondary importance.

Jan 1, 1949

By M. H. Caron

BASIC U. S. Patent 1,487,145 on ammonia leaching of nickel ores was issued to the author on March 18, 1924. Equivalent patents in other countries were obtained later. The Dutch Syndicate Brikcarbo became interested in the process in 1935; and a couple of years later the late Dr. H. Foster Bain sent samples of Surigao laterite iron ore to Delft and witnessed tests made there on this material for the Philippines Commonwealth. As a result, the author was asked in April 1940 by Dr. Bain to go to the Philippines to erect and take charge of a pilot plant for the process. The World War prevented carrying out this proposal. The Dorr Co. also became interested in the process at about the same period. The investigations by the Freeport Sulphur Co. on the process as applied to the Cuban nickeliferous laterites, which resulted in the Nicaro enterprise, and the results of this operation have been well described elsewhere.1,²,³,4,5 This Nicaro plant was, in operation for almost two years, and during this period produced about 10 pct of the world nickel production from laterites containing 1.35 pct nickel. This plant and its operation were war measures and, in view of this, activities were suspended in April 1947. The results obtained fully demonstrated the technical feasibility of the process and its economical aspects on a commercial scale. In this respect, it should be understood that it is probable that improvements may be made by further development, and that there are possibilities for advantageous application of the process to garnierite and similar ores with higher values in nickel than the laterite iron ores at Nicaro. While the articles cited above have given a certain amount of information, no general article containing all the important process data has been pub- lished. Since the process is of more than local interest, a fuller knowledge of the fundamental and practical factors of the method may be welcome to those interested in this new field of metals technology. The author, accordingly, takes pleasure in submitting this article to the AIME as it represents in a condensed form the results of many years of research. The brief outlines of the fundamental and other factors and the explanation of observed phenomena are presented with as little discussion of details as possible, consistent with clarity. It is a special satisfaction to the author to make some contribution of his own in return for the benefits of the many valuable publications issued by the Institute during his thirty years of membership. Ores Adapted for Ammonia Leaching: All nickel and cobalt ores which originate from weathering of peridotites or similar basic rocks having sufficient values are suitable for treatment by the ammonia leaching process after a preliminary reduction under proper conditions. The formation of these deposits was probably as follows: In the course of time the basic rocks were attacked by atmospheric agencies; MgO and SiO2 were gradually leached out, and secondary nickel minerals formed, such as garnierite, a hydrated silicate of nickel and magnesia. These secondary products are, however, not stable. They decompose in a further stage of weathering and ultimately only a relatively small residue of insoluble oxides remains, known as laterite iron ore with a small nickel content and very little cobalt. Under these mantles of laterite, richer nickel values may be found, usually indicated by the occurrence of garnierite. The more the ore is disintegrated by nature, the higher the iron content and the better the nickel extractions that may be expected therefrom. Table I shows extractions that may be expected from different types of ores, assuming treatment of -200 mesh products and that all precautions have been taken for obtaining maximum extractions. As for the distribution of the various nickel minerals and compounds that may be present, great variations may occur from locality to locality as well as vertically in a deposit. From such "run of

Jan 1, 1951

By H. C. Brown

SINCE 1934 the steel industry has been utilizing the spectrograph for supplementing wet chemical analysis in the production control of electric and open hearth furnaces. This means of control made great strides during the war years because of the general acceptance of the spectrograph and the increased emphasis that was placed on rapid control methods. However, in the post war era, with the demand still on increased production, it became apparent that a still more rapid and economical means of production control was needed. Since the spectrograph had been used mostly in the analysis of low alloying and residual elements, it also became apparent that equipment was needed to extend the spectrographic technique to the analysis of the high alloying elements in stainless steel. For these reasons, companies manufacturing spectrographic equipment were prompted to start development work on direct reading instruments. In June 1949, the Applied Research Laboratories of Glendale, Calif., announced that a direct method of spectrochemical analysis for stainless type steels had been developed. This paper will describe the use of the Applied Research Laboratories Production Control Quantometer in the quantitative control of stainless, silicon, and plain carbon steels being made at the Butler Pennsylvania Div. of the Armco Steel Corp. The Armco Butler Div. has one 70-ton electric furnace and six 150-ton open hearth furnaces. The electric furnace is employed in the making of all types of stainless steel and the open hearth furnaces are used for the production of silicon, wheel, and plain carbon steels. The ARL quantometer was purchased primarily for the purpose of controlling the steelmaking in the electric furnace, but its use has been extended for the analysis of final tests (ladle tests) on a number of different types of stainless, silicon, and plain carbon steels. Because of this additional work by the quantometer, substantial savings in manpower and time have been realized by the laboratory. In the analysis of a set of preliminary tests from the stainless steel furnace, approximately 40 min in laboratory time are saved due to quantometric analyses. Despite the fact that more specialty grades of stainless steel are being made in the electric furnace, the average tons per hour have been increased since the quantometer was put into operation. Specialty grades require more furnace time than regular commodity grades of stainless steel. The installation of the ARL production control quantometer was completed on March 13, 1952. By May 1, 1952, the instrument was calibrated for nickel, chromium, manganese, silicon, and molybdenum, which are the elements necessary for the production control of the stainless steel furnace. Within the following month, training of personnel on the quantometer was achieved and a study of the accuracy of the instrument showed that the results obtained were sufficiently accurate for control purposes. Therefore, on June 11, 1952, the quantometer was placed on production control for all types of stainless steels. Starting September 11, 1952, the instrument was gradually placed on ladle analysis (final tests) as the analytical curves were refined and additional curves were drawn. The quantometer has been relatively free of breakdowns since placing it on production control. The samples from only one stainless steel heat have had to be analyzed by wet chemistry because of instrument trouble. The previously existing heat-time record was also bettered by 15 min on a commodity grade of 18-8 stainless steel. Scope of Control In general, the quantometer determines all elements necessary for the production control of all types of stainless steel heats and for the ladle analysis of various types of stainless steel heats. It is also used in reporting final results for silicon, manganese, chromium, nickel, molybdenum, tin, copper, and aluminum on all silicon steel grades and manganese, chromium, nickel, molybdenum, tin, and copper on several plain carbon steel grades. Table I shows the elements and the concentration ranges of these elements in the various types of stainless, silicon, and plain carbon steel that are determined on the quantometer. A study of the results obtained on ladle test samples of stainless steel types 410, 430, 430 Ti, 446, 301, 302, 304, 304L, 305, and 17-7 PH will be discussed. Also included in the study are the results obtained on ladle test samples of a number of silicon steels. Apparatus In order to take full advantage of the potentials of the production control quantometer, the unit has been placed in an air-conditioned room with relative humidity control. The temperature is maintained at 73'22°F and the humidity at 45&5 pct. The air conditioning serves as a precaution to minimize the amount of adjustment and calibration needed during operation. It also reduces contaminating fumes and dust and thereby lessens the necessity for maintenance on the equipment. The quantometer is composed of three units: the high precision multisource unit, the 1.5 meter vertical spectrometer, and the console. The source unit supplies excitation conditions varying from spark-like discharges to arc-like discharges. The voltage to the source unit is supplied by a motor-generator

Jan 1, 1955

By Walter W. Bradley, OLAF P. JENKINS

IN April of this year the California State Division of Mines (formerly known as the State Mining Bureau) observed its 50th anniversary. The Division serves as a bureau of information and, an encyclopaedia of California's economic minerals. Its primary function is to make economic surveys of the mineral resources of California, their development and utilization. Geological studies also constitute a related part of the work as being necessary in tracing and out- lining ore deposits and the most likely areas in which to find them. The results of the Bureau's data-gathering are published in the form of annual reports of the State Mineralogist, and in bulletins on specific substances. The Division is just completing a series of reports on the mineral resources of the State arranged by counties.. It is now starting .a new series of reports arranged according to substances particularly the so-called non- metallic commercial groups. Of these the following are now available: clays, barite, and mineral paint. These will be followed by reports on feldspar and silica, diatomaceous earth, limestone and others

Jan 1, 1930

By Robert Laurich

Chuquicamata pit was opened in 1915 with steam shovels and steam locomotives brought down from the Panama Canal excavation project. With expansions in the early years, more steam locomo¬tives were brought into the mine. IMPROVED LOCOMOTIVES During the period 1927 to 1937, electric locomo¬tives were purchased and main line and bench tracks were electrified. Third rail was installed up to the working areas. At first, the locomotives were equipped with batteries for service at the shovels, but charge life was too short and they were con¬verted to use the third rail and a reel with 3000 ft of trailing cable for service in the loading area.

Jan 11, 1959

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 K. Harms, T. D. Jones

TO unload large tonnages of lead bullion cast in 100-lb. bars is a problem which has confronted the lead refineries for many years. The bars, on arrival, must be restacked for unloading by truck or hand-charged to charging machines. Selected crews of labor, capable of working at sustained speeds for five- or six-hour periods, are required for this exhausting task. Due to the fatigue involved crew personnel changes rapidly. During the war it became increasingly difficult to maintain crews, especially in critical labor areas, so that the development of casting and shipping ten-ton lead blocks from the smelters to the refineries became a must in our operating program. For many years lead refineries, when making interdepartment or intradepartment transfers, have cast lead blocks weighing five or ten tons which are easily handled by crane by merely attaching the crane hook to a steel anchor embedded in the frozen lead blocks. In previous years, the practice was to use regular smelter slag pots which, due to their rounded shape, produced what were called "buttons" by the refinery personnel. The button-type blocks were unsafe as they rolled and tipped easily and were unsatisfactory for stacking since no piling pattern could be followed. To remedy this situation, flat-bottom molds came into general use and later the bottoms were made concave to prevent slipping.

Jan 1, 1946

By Samuel H. Dolbear

THE value of a mine is basically dependent on its capacity to yield profits. Since the ore must be mined, treated, and sold, some of it in various future years. there is a risk involved as to future costs, selling price, and working conditions. It cannot be expected that the economic condition existing at the time of valuation will continue unchanged for long periods in the future. During the past 20 years, mineral production in the United States has been conducted under a changing economy in many respects more exacting than that applied to other businesses. There have been increased production incentives, technical aid, exploration of privately owned mineral deposits by government at federal expense, and liberal loans for development and equipment, with risk partially assumed by government.. Some of these benefits have been counterbalanced by price ceilings, consumption controls, and stimulation of competition from foreign producers who have been offered the same advantages extended to American operators. For the present, mines will operate under a government policy directed toward reducing federal aid and control. The tenure of this change will depend upon future elections and the status of foreign relations. War and threat of war are now of the most vital significance to the mineral industries. Other factors which influence cost of production, markets, and price of mine output might be classified as Acts of God or Acts of Government. In some countries expropriation and the difficulty of exporting earnings or investment returns are risks that must be considered by foreign capital. Recognizing that this retards American investment in foreign countries, the Mutual Security Agency offers insurance against such expropriation and guarantees the convertibility of capital and profits. Since it is impossible to predict with certainty either cost of production or selling prices of metals for long periods, some assumptions must be made as to profits in the future. The basic assumption must be that the price of the company's product will vary in proportion to changes in operating cost. There is often a lag in this reaction, however, for prices of minerals are generally more sensitive to declines and less sensitive to increases than are costs. This reflects in part the resistance of labor to downward wage revision and a corresponding alertness in realizing its share of price advances. Some labor contracts include automatic adjustments to metal prices. Notwithstanding the complexity of the, problems involved and the difficulty of weighing their effect on value, such risks may be appraised with reasonable accuracy and a rate of earnings adopted that is compatible with the risk. It is, of course, possible to revert to a yardstick of value such as the commodity dollar, which has been advocated from time to time, but while revaluation in 1933 disturbed public confidence, the theoretical gold dollar continues to be the standard of greatest stability. Its gain or loss in purchasing power is reflected ultimately in cost of production and selling price of the mine product. At present 35 dollars are allocated to one ounce of gold. Measurement of Risk In the application of the Hoskold and most other formulae, a yearly dividend rate commensurate with the risk involved is set aside out of annual earnings. If the risk is great, this rate may be 15 to 25 pct of the amount invested. The remainder is placed in a sinking fund invested in safe securities such as high grade bonds or conservative equities, and the interest or dividends from these securities are added to the sinking fund. The sum of these sinking fund payments and the compounded interest at the end of the mine life is taken as the value of the mine. Admittedly the decision as to the size of the risk rate is the most difficult element in valuation and one requiring the most exacting consideration. It is necessary to look years ahead in an effort to determine future costs, market prices, demand, competition which may develop, including that of substitutes, and other influences common to the mine and to the region in which it is situated. Another phase of risk is the enactment of unfavorable legislation, taxes, and what appears to be an alarming spread of nationalization and expropriation. Capital is sometimes borrowed from the government to finance strategic production. Such loans may be collectable only out of production and involve no liability otherwise. Valuation in these cases must recognize the effect of such a reduction in liability. Offsetting some of these risks are the possibilities of mechanization and other cost-reducing discoveries, improvements in mining and treatment methods, new uses for minerals and metals, and normal growth of markets. In this paper, the terms risk rate, dividend rate, and speculative rate are synonymous. Safe rate and redemption rate are also used interchangeably. These alternatives are used here because they are commonly found in the literature on mine valuation. In Michigan, the State Tax Commission has long employed a risk rate of 6 pct in its valuation of iron mines. There the outline of reserves is well established and operating costs and conditions are based on adequate experience. The following comment on rates appears in the report of the Minnesota Interior commission on Iron Ore Taxation submitted to the Minnesota Legislature of 1941.1 Most engineers agree that 7 percent for the specu-lative rate is "an absolute minimum". C. K. Leith in

Jan 1, 1954

By J. B. Clark

The oil industry has long recognized the need for increasing well productivity. To meet this need, a process is being developed whereby the producing formation permeability is increased by hydraulically fracturing the formation. The "Hydrafrac" process, as it is now being used, consists of two steps: (1) injecting a viscous liquid containing a granular material, such as sand for a propping agent, under high hydraulic pressure to fracture the formation; (2) causing the viscous liquid to change from a high to a low viscosity so that it may be readily displaced from the formation. To date the process has been used in 32 jobs on 23 wells in 7 fields, resulting in a sustained increase in production in 11 wells. INTRODUCTION Need For Process Although explosives, acidizing, and other methods have long been used, there still exists a need for artificial means of improving the productive ability of oil and gas wells, particularly for wells which produce from formations which do not react readily with acids. This paper discusses the development of a hydraulic fracturing process, "Hydrafrac", which shows distinct promise of increasing production rates from wells producing from any type of formation. The method is also considered applicable to gas and water injection wells, wells used for solution mining of salts and, with some modification, to water wells and sulphur wells. Requirements of Process In considering such a possible process, it appeared that certain requirements must be met. Some of these are as follows: A. The hydraulic fluid selected must be sufficiently viscous that it can be injected into the well at pressure high enough to cause fracturing. B. The hydraulic fluid should carry in suspension a propping agent, such as sand, so that once a fracture is formed, it will be prevented from closing off and the fracture created will remain to serve as a flow channel for oil and gas. C. The fluid should be an oily one rather than a water-base fluid, because the latter would be harmful to many formations. D. After the fracture is made, it is essential that the fracturing fluid be thin enough to flow hack out of the well and not stay in place and plug the crack which it has formed. E. Sufficient pump capacity must be available to inject the fluid faster than it will leak away into the porous rock formation. F. In many instances, formation packers must be used to confine the fracture to the desired level, and to obtain the advantages of multiple fracturing. Development of Process As a necessary step in the development of this process, it was deemed advisable to determine if the Hydrafrac fluids were actually fracturing the formation or whether these special fluids were merely leaking away into the surrounding formation. To determine this, a shallow well, 15 feet deep, was drilled into a hard sandstone. Casing was set, the plug drilled, and the well deepened in the conventional manner. A fracturing fluid dyed a bright red was used to break down the formation. Sand mixed with distinctively colored solids was injected into the well with the fracturing fluid to prop open any fracture made in the formation. A simulated gel breaker solution dyed a bright blue was then pumped into the well to determine if the gel breaker would follow the first solution. The results are shown in Figure 1. It was noted that a fracture was formed about the well bore, that the propping agent was transported back into the break, and that the breaker solution did actually follow the fracturing gel out into the fracture. While it is realized that this shallow well test is probably not exactly equivalent to a deep test, the results were interpreted as being a definite indication of what happens down the hole during a Hydrafrac job. Of interest in this connection is an investigation reported by S. T. Yuster and J. C. Calhoun, Jr.' This study, re~orted after the Hydrafrac work was under way, presents some excellent field data supporting the theory of fracturing a formation with hydraulic pressure. METHOD Steps of Hydrafrcu: Process Figure 2 shows a simplified cross-sectional view of a well treated by one version of the process. The first step, formation breakdown, is done with a viscous fluid, usually consisting of an oil such as crude oil or gasoline, to which has been added a bodying agent. Due to availability and price, war-surplus Napalm has been used in the majority of experiments to date. Napalm is the soap which was used in the war to make "jellied gasoline". The next step consists of breaking down the viscosity of the gel by injecting a gel-breaker solution and then after several hours, putting the well back on production. Figure 3 shows diagram-matically, a typical field hookup. The oil or gasoline is unloaded into the 10 bbl. tank shown on the left rear of the truck. This base fluid is picked up by the mixing pump and pumped through the jet mixer, where the granular soap is added. Next it goes into a small mixing tub, from which the high-pressure pump takes suction. The solution is then pumped into the well. The breaker solution is then taken from an extra tank and is displaced into the well immediately following the gel. When required, additional trucks may

Jan 1, 1949

By J. B. Clark

The oil industry has long recognized the need for increasing well productivity. To meet this need, a process is being developed whereby the producing formation permeability is increased by hydraulically fracturing the formation. The "Hydrafrac" process, as it is now being used, consists of two steps: (1) injecting a viscous liquid containing a granular material, such as sand for a propping agent, under high hydraulic pressure to fracture the formation; (2) causing the viscous liquid to change from a high to a low viscosity so that it may be readily displaced from the formation. To date the process has been used in 32 jobs on 23 wells in 7 fields, resulting in a sustained increase in production in 11 wells. INTRODUCTION Need For Process Although explosives, acidizing, and other methods have long been used, there still exists a need for artificial means of improving the productive ability of oil and gas wells, particularly for wells which produce from formations which do not react readily with acids. This paper discusses the development of a hydraulic fracturing process, "Hydrafrac", which shows distinct promise of increasing production rates from wells producing from any type of formation. The method is also considered applicable to gas and water injection wells, wells used for solution mining of salts and, with some modification, to water wells and sulphur wells. Requirements of Process In considering such a possible process, it appeared that certain requirements must be met. Some of these are as follows: A. The hydraulic fluid selected must be sufficiently viscous that it can be injected into the well at pressure high enough to cause fracturing. B. The hydraulic fluid should carry in suspension a propping agent, such as sand, so that once a fracture is formed, it will be prevented from closing off and the fracture created will remain to serve as a flow channel for oil and gas. C. The fluid should be an oily one rather than a water-base fluid, because the latter would be harmful to many formations. D. After the fracture is made, it is essential that the fracturing fluid be thin enough to flow hack out of the well and not stay in place and plug the crack which it has formed. E. Sufficient pump capacity must be available to inject the fluid faster than it will leak away into the porous rock formation. F. In many instances, formation packers must be used to confine the fracture to the desired level, and to obtain the advantages of multiple fracturing. Development of Process As a necessary step in the development of this process, it was deemed advisable to determine if the Hydrafrac fluids were actually fracturing the formation or whether these special fluids were merely leaking away into the surrounding formation. To determine this, a shallow well, 15 feet deep, was drilled into a hard sandstone. Casing was set, the plug drilled, and the well deepened in the conventional manner. A fracturing fluid dyed a bright red was used to break down the formation. Sand mixed with distinctively colored solids was injected into the well with the fracturing fluid to prop open any fracture made in the formation. A simulated gel breaker solution dyed a bright blue was then pumped into the well to determine if the gel breaker would follow the first solution. The results are shown in Figure 1. It was noted that a fracture was formed about the well bore, that the propping agent was transported back into the break, and that the breaker solution did actually follow the fracturing gel out into the fracture. While it is realized that this shallow well test is probably not exactly equivalent to a deep test, the results were interpreted as being a definite indication of what happens down the hole during a Hydrafrac job. Of interest in this connection is an investigation reported by S. T. Yuster and J. C. Calhoun, Jr.' This study, re~orted after the Hydrafrac work was under way, presents some excellent field data supporting the theory of fracturing a formation with hydraulic pressure. METHOD Steps of Hydrafrcu: Process Figure 2 shows a simplified cross-sectional view of a well treated by one version of the process. The first step, formation breakdown, is done with a viscous fluid, usually consisting of an oil such as crude oil or gasoline, to which has been added a bodying agent. Due to availability and price, war-surplus Napalm has been used in the majority of experiments to date. Napalm is the soap which was used in the war to make "jellied gasoline". The next step consists of breaking down the viscosity of the gel by injecting a gel-breaker solution and then after several hours, putting the well back on production. Figure 3 shows diagram-matically, a typical field hookup. The oil or gasoline is unloaded into the 10 bbl. tank shown on the left rear of the truck. This base fluid is picked up by the mixing pump and pumped through the jet mixer, where the granular soap is added. Next it goes into a small mixing tub, from which the high-pressure pump takes suction. The solution is then pumped into the well. The breaker solution is then taken from an extra tank and is displaced into the well immediately following the gel. When required, additional trucks may

Jan 1, 1949