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By L. A. Panek, F. D. Wang, M. C. Sun

A method of stability analysis of underground opening by the limiting equilibrium approach is presented. The Coulomb shear failure criterion is employed to find possible fracture surfaces and to evaluate the shear strengths along them. The normal stresses required for the calculation of shear strength, and the shear stresses for the calculation of total shear force along the fracture surfaces, are obtained by the finite-element method of plane-strain analysis. The factor of safety against Coulomb shear failure is calculated as the ratio of the shear strength to the shear force along a fracture surface, similar to the practice in slope stability analysis. Four shapes of openings are analyzed, with three ratios of horizontal lithostatic stress and four coefficients of internal friction. The critical fracture surfaces found by this method of analysis are consistent with the arching of roofs and slabbing of ribs commonly observed.

Jan 1, 1972

By R. E. Ray, J. W. Stevenson, J. A. Berry

Conventional concrete block plastered with a cementitious coating is the most common material used in the construction of permanent stoppings to direct airflow in underground mines in the US. All mines experience various degrees of strata convergence depending on depth of overburden, geological conditions, and type of roof support employed. Strata convergence will cause cracks and joint openings in masonry stoppings, resulting insignificant air leakage losses. Where strata convergence is severe, complete structural failure of the stopping can ultimately occur. Reconstruction of damaged or destroyed stoppings adds expensive overhead to mining operations, and even greater expenses are incurred from the additional fan horsepower required to overcome leakage losses. Ideally, a stopping should maintain high resistance to airflow while yielding to strata convergence. By properly incorporating a polyisocyanurate rigid foam material within the masonry block structure, stopping service life can be increased in mines experiencing strata convergence problems such as floor heave, roof loading, and lateral rib movement.

Jan 1, 1986

By Jack G. Gill, Richard A. Dick

Blasting safety is a subject that cannot be overemphasized. Two years ago, a study was published describing g a series of fatal blasting accidents which took the lives of ten metal and nonmetal miners during the period of May 1973 to August 1974.1 Each accident was described, and the direct causes were delineated. In each instance, specific MESA safety regulations were violated. Four of the victims were killed by drilling into explosives; two were killed by lingering too long in the vicinity of fuse rounds; two fatalities resulted from improper guarding of shots; one blaster did not retreat far enough to avoid the blast concussion; and another used an improper tester for checking an electric blasting cap. All of these fatalities could have been avoided by adhering to the MESA blasting regulations contained in 30 CFR Part 55 (Health and Safety Standards-Metal and Nonmetallic Open-Pit Mines), Part 56 (Health and Safety Standards-Sand, Gravel and Crushed Stone Operations), and Part 57 (Health and Safety Standards-Metal and Nonmetallic Underground Mines).

Jan 11, 1977

By Claus Goetzel

THE object of this investigation was to determine whether silver alloys could be used instead of the currently employed insert of high-expansion AVERAGE COEFFICIENT PER DE G. C. OVEN RANGE 20° To 200° C. Pure aluminum '31.6 X 10-6 Cast low-expansion Si-Cu-Ni-Al piston alloy 20.0 X 10-6 High-expansion austenitic Cu-Ni cast iron 19.3 X 10-6 Cast steel (0.25-0.35 C, 0.10-1.0 Mn) 12.6 X 10-6 Cast iron (3.15 total C, 2.16 Si) 12.8 X 10-6 Pure silver 18.9 X 10-6 austenitic ferronickel alloy, to reduce the wear of ring grooves in light metal pistons. A typical example of a piston containing a ferronickel insert is shown in Fig. 1. The high coefficient of expansion of silver made it worthy of consideration, while the small size of the insert would render it use feasible in Germany as an emergency in is- tire. The coefficients of linear expansion of several metals and alloys are as shown in the table above. Obviously the melting point of the insert must be high enough to prevent it from melting when the light alloy is cast around it. This imposes a lower limit of about 850° C. for the solidus of the silver alloy. Pure silver melts at about 961° C., so that the Fin. 1.-PISTON CONTAINING tolerable depression in the solidus is rather FERRONICKEL INSERT. small. To avoid deformation of the insert during use a Brinell hardness number of at least 60 appears necessary.

Jan 1, 1937

By L. F. Stutzman, George Thodos

A new graphical method, which is a modification of that proposed by Buckley and Leverett', is presented for the determination of the displacing fluid saturation at breakthrough for frontal drive mechanisms. This method is applicable to all types of fluids, which may be either soluble or insoluble in the oil at reservoir and injection conditions. This adaptation has unique advantages in handling problems in which either liquids or gases are the displacing fluids. INTRODUCTION In the displacement of oil from a reservoir with water or gas injected into the formation or by the expansion of a gas cap, the determination of breakthrough or flood advance is important to define the initial and subordinate phases of the operation. Thus, the determination of the displacing fluid saturation at breakthrough is fundamental to the establishment of over-all reservoir production. Methods for analyzing this saturation and for calculating production rates have been previously reported1,'*".". All of these methods utilize the rate equation for linear flow developed by Buckley and Leverett1. xs = QT - Qn/A? (?fu/?Su) .....(1) Sp where f, represents the volumetric fraction of displacing fluid in the total flowing fluid within the reservoir as is defined by: fo = 1/1+ ku/kd µn/µn .......(2) Since the time, ?, necessary for the flood front to travel distance ?X is unknown, Eq. 1 cannot be solved directly for the determination of the breakthrough point. Therefore, it becomes necessary to solve Eq. 1 simultaneously with an equation representing a fluid bal-ance on the reservoir behind the flood front. To develop such a fluid balance equation, it has been assumed that the fluid composition is uniform in the reservoir behind the flood front. Based upon this assumption, the follow-ing equation can be derived from a material balance on the displacing fluid: x = (?X) s Dx ? x=0 [ Snx - Sn1 ] dx = QT - Qn/A? It is readily observed that the displacing fluid satura-tion behind the flood front, Snx, may be determined through the simultaneous application of Eqs. 1 and 3. Although the approach may vary, this objective re-mains the same for all of the previously mentioned graphical or analytical methods. After Sox is determined, it is then possible to calculate the gas-oil and/or water-oil ratios and the rates during the initial and subordinate phases of production, and thereby define the production history of the reservoir. In this presentation only the de-termination of Snx is considered, and the reader is re-ferred to the several texts in reservoir engineering2,4,5 for a complete discussion on the methods for establish-ing the production history of a reservoir. PROPOSED METHOD FOR DETERMINING Snx Since at any time the quantity, QT - Qn/A? is a constant, Eq. 1 may be expressed in differential form as follows: dxsn = QT - Qn/A? d (? fn/? Sn) sn .....(4) Eq. 4 may be substituted directly into Eq. 3 to obtain: ? fn/? Sn ? [ Snz - Sn] QT - Qn/A? d ( ? fn/? Sn) = QT - Qn/A? ...............(5) Eq. 5 simplifies to the expression: ? fn/? Sn ? [ Snz - Sn] QT - Qn/A? d ( ? fn/? Sn) = 1 ....(6)

Jan 1, 1958

By Paul H. Lu

Methods and results of measuring three basic parameters for ground stability control, ground pressure, strata movement, and geomechanical properties of mine rock are presented in this paper. It is found that these parameters can be measured in situ by simple and practical techniques with nonsophisticated and inexpensive instruments. Specifically, a drillhole dilation technique employing a cylindrical hydraulic borehole pressure cell (CPC) was used to determine the modulus of rigidity. Premining ground pressures were determined by pressure convergence tests with a combination of one CPC and two pre-encapsulated flat hydraulic borehole pressure cells (BPC) installed in a single drillhole. Abutment pressures and pillar loading were monitored with BPC's. Differential strata movements and bed separations were measured with self-recording 10-anchor-point extensometers. Roof-to-floor convergence was measured with self-recording convergence meters. Some applications of these in-situ-determined parameters to mine design and ground stability control are also discussed.

Jan 1, 1984

By Henry Schwellenbach

LABOR shortages, rising wages, and changes in moisture and fines content of the ore necessitated a review of the flowsheet at Warren Foundry & Pipe Co's. Mt. Hope, N. J. Mines Div. This plant had been designed prior to World War II, and started operations in January 1945. When this operation was designed there was an oversupply of labor in the area, wages were at a reasonable level, the run-of-mine ore was low in moisture, and there was a limited amount of fines. These factors all favored use of hand picking for cleaning rougher lump concentrate. Since that time, many changes have occurred. The proximity of defense industries and large military installations, has created one of the most acute labor shortages in the country. This labor shortage together with present wage levels, and the increase in moisture and fines in the ore created several problems. The increase in moisture and fines may be attributed to changed mining methods, the extensive use of sprays, and the opening of new mining areas bringing an increase in ground water. [ ] Two problems were presented by the increase in moisture and fines. The first was that lump ore arrived at the open hearth in an unacceptable condition, due to the segregation enroute of the large amount of fines that had adhered to the lumps. The second problem was that high magnetite content fines coated the large lumps, making it difficult for pickers to distinguish middling by other than the relative weight. [ ]

Jan 1, 1952

TULSA SECTION At the smoker concluding the two day meeting of the Tulsa section of the American Institute of Mining and Metallurgical Engineers, Tulsa, Okla., Feb. 26, 1919, Dr. Willis T. Lee, the new head of the Geological Department of the University of Oklahoma, was introduced to the assembled geologists and mining engineers. Dr. Lee requested that the geologists and engineers who were making a specialty of petroleum geology assist him in giving a good course in practical oil geology in the Geological Department of the University. After a motion offering the services of all present in giving lectures on their special subjects had been adopted, Dr. Perrine of Hutchinson, Kans., named the geologists who were pledged to give lectures in Dr. Lee's course. The students in geology at Norman are assured of the latest information regarding practical work in petroleum geology and will have the inspiration derived from contact with men who are actually at work upon the problems which they are studying. Dr. Lee and President Brooks of the University are to be congratulated upon the introduction of this .method of instruction. The plan thus put into operation is similar to the graduate system of coaching in athletics followed at many of the large universities; what is good for instruction in athletics should also prove good for instruction in applied geology.

Jan 6, 1919

By P. O. Metz, E. L. Wiehe, J. S. Foster

BASED on their analyses of growth kinetics, ibbs' and Harris et al.' have recently proposed that the rate of subcritical graphitization of steel is controlled by the rate of diffusion of carbon in ferrite. illert has concluded that this is the rate controlling growth mechanism when the growing graphite particles are relatively large. Harris et al.' also propose that the matrix surrounding a growing graphite particle is plastically deformed to make room for the growing particle. If this plastic deformation does occur, then preferred recrystallization may be observed around the larger particles. If diffusion of carbon in ferrite is rate controlling, then a graphite particle growing in a matrix of, say, tempered martensite or pearlite, should be surrounded by a carbide depleted zone. Thus, the simple metallographic experiments reported here are sufficient to determine whether or not diffusion of carbon in ferrite is the dominant mechanism for the growth of graphite in steel. The present investigation considers graphitization in five alloys. The compositions are given in Table I. Graphitization was carried out at three temperatures: 900°K (627"C), 950°K (677"C), and 990°K ('717°C). Samples were reacted in both the martensitic and the pearlitic initial conditions. In the hypoeutectoid steels, Sets 7 and 8, .and in the hypereutectoid Fe-C binary, Set 6, graphitization was very limited after 1000 hr at temperature. In these samples graphite particles observed were less than 10 p in diam. In the hypereutectoid commercial steels, Sets 1 and 3, large graphite particles (100 p) did not appear until after 250 hr at temperature. The limited number of graphite particles observed and the range of sizes obtained prohibited measurement of growth rates in this investigation. However, in all samples showing graphitization, neithe a carbide depleted zone nor recrystallization was observed. illert's model predicts that diffusion of carbon in ferrite should become dominant for graphite particles larger than about 300 p in diam. The largest graphite particle observed in this investigation was approximately 450 p in diam. No evidence of carbide depletion was noted. Fig. 1 shows a typical graphite particle. This nodule is from an initially pearlitic sample from Set 3 after

Jan 1, 1970

By L. Obert, D. E. Stephenson

The objectives of this investigation were to develop a laboratory procedure in which core discing could be produced under known (and variable) stress conditions, and to study the discing characteristics of several fypes of rock. Discing of rock cores refers to the formation of discs or wafers of relatively uniform thickness which fracture or rupture on surfaces approximately *Fracture is a type of failure in which there is a complete loss of cohesion and fresh surfaces are created. Rupture is a type of failure in which there Is only a partial loss of cohesion. normal to the axis to the core (see Fig. 1). Usually the surfaces of the discs are concave-convex with the concave side toward the collar of the hole. The surface of the fractured discs are like those created by a tension failure (or possibly a shear failure with virtually no normal compressive stress). This phenomenon has been observed by a number of investigators1-5 in the course of diamond drilling in underground mines, especially in areas suspected of being under high stress. The state of stress in the core required to produce discing is not exactly known. Tranter and craggs6 theoretically investigated the stress distribution in an infinite cylinder, subjected to hydrostatic pressure, minus p, from z = 0 to z = 8 and unloaded from z = 0 to z = 8, Fig. 2. The exact solution to this problem shows that a tensile stress develops in the loaded region near z = 0 with the greatest tensile stress on the axis of the cylinder. A tensile stress also developed on the surface of the cylinder at a point just outside of the loaded zone. Jaeger and Cook3 experimentally investigated the discing mechanism by biaxially loading cores in a pressure jacket sealed at the ends by O-rings. According to the Tranter and Craggs theory it would be expected that failure should occur at the pressure discontinuity at the O-rings. The experimental results showed that if the specimen was unjacketed it broke at random points within the pressurized zone and at a pressure somewhat greater than the tensile strength of the specimen, presumably due to the development of a

Jan 1, 1965

By Euzebio De Oliveira

ONE of a recent batch of samples from the Serra da Baliza, in the state of Parana, Brazil, contained asphalt and a dark heavy oil; and workmen on the railway from Porto União to Uruguay discovered asphalt, coming from eruptives that outcrop along the Rio de Peixe. The occurrence f asphalt in the triassic eruptives of southern Brazil, however, has been known a long time, according to Dr. Gonzaga de Campos. It is generally believed that the Botacatú sandstone is always a hard vitrified rock, from the metamorphic action f. the overflowing eruptive contacts. In this region, however, the contact metamorphism is almost nil; the sandstone is slightly hardened in a narrow zone about 20 to 30 cm. wide. In many places, the sandstone is so friable as to be easily reduced to sand, which is used-.in, mortar for building in Guara-puava and Palmas. South and west from Porto União,. this bench of sandstone is about. 50 m. thick, and is capped by a heavy bed. f basic eruptives, many of which are amygdaloids. Dr. Geo: P. Merrill, after studying the triassic eruptives collected by the Coal Commission, reached the conclusion that. "All these rocks are of typical basalt-diabases, not in any essential different other than in structure. An interesting mineralogical phase is its paucity in olivine, which in many cases is completely lacking. Professor Hussak, who carefully studied these rocks and their accessory minerals, decided that in the dikes they are granular (diabase) and, that in the lava sheets, porphyritic (augite-porphyrite or melaphyre), and that the latter pass evidently to normal diabases and are always typical of effusive rocks. The examination f many slides from dikes and sheets leads us to adopt the opinion of Professor Hussak; the rocks of the dikes are of ophitic structure, while that of the sheets show a great variety f structure and may vary from almost granular to basaltic. The great paucity in olivine had been noted by Hussak, who classes as melaphyres, the porphyritic triassic rocks in Brazil which contain olivine.

Jan 4, 1921

By D. N. Dietz

Jan 1, 1969

By F. W. Maclennan

The following is a list of members who died in 1929. It is compiled from reports to the Secretary's office. Biographical sketches published in Mining and Metallurgy are indicated in the last two columns. Issue Containing Year of Date of Biography Election Name Death 1929 Page 1922 Adams, Waldo Peck................................ June 2 September 435 1903 Argall, Joseph.................................... Nov. 1 1894 Austin, Leonard S................................. Oct. 30 December 580 1905 Bailed, Melbourne.........................Dec. 12 May* 280 1890 Barringer, Daniel M.............................. Nov. 30 February* 119 1895 Batchelleb, HENRr R.............................. Jan. 15 March 167 BINGHAM Charles E............................. 1923 Bibkett, E. H..................................... Apr. 23 August 394 1913 Bibbell, Robert W................................. Jan. 18 April 214 1926 Blackmar, Don C.................................. June 4 March* 189 1920 Bosworth, T. O.................................... Jan. 18 April 214 1894 Boucher, Arthur S..........................Jan. 6 May 257 1927 Brandenthaler, R. R.............................. Dec. 14 January* 64 1889 Bretherton, S. E............................... Oct. 4 December 581 1911 Brunton, F. K................ .. Aug. 17 1924 Brush, Charles F................................. June 15 September 436 1925 Cameron, Frank N........................May 16 July 349 1891 Chambers, Robert E.............................. May July 348 1908 Clark, J. Murray................................. Dec. 3 August* 407 1883 Clymer, edward T............................. Oct. 13 December 579 1914 Cofpey, George T................................. May 8 July 349 1901 Cooke, L. H....................................... Aug. 23 November 537 1915 Cousins, George W........................ June 30 February* 118 1886 Cowles, A. H...................................... Aug. 13 September 436 1892 Crane, Theron I............................. Nov. 2 December 579 1921 Crowell, Samuel B................................ Dec. 9 January* 64 1907 Curtis, Bracey.................................... Jan. 31 April 215 1895 de Batz, Rene........ ............... January March* 189 1928 Dines, Tyson S.................................... March May 257 1909 Dufourco, R. G............................. January November 537 1920 Ericsson, Eric A.................................. Apr. 4 April* 231 1920 Erlenborn, Willi....................... Nov. 10 March* 189 1888 Farish, John B.................................... Nov. 14 December 580 1891 Ferguson, Vincent........................... Mar. 8 May 257 1917 Finucane, T. R.................................... Mar. 22 February* 118 1921 Foch, Ferdinand................................... Mar. 20 1885 Foucar, Edouard I....................... Jan. 3 March 167 1880 Francklyn, Charles G............................. Jan. 11 April 214 1925 Friedl, Arthur J.............................. July 9 September 435 1894 Fuller, James W. Jr............................... April 4 1876 . Goodale, Charles W.............................. April 11 May 258 1912 Graybill, John..........................Dec. 11 June* 320 1887 Gritzner, F. A.................................. Mar. 26 July 394 1906 Gunther, C. Godfrey.............................. Deo. 26 February* 118 1900 Haggen, Edward A.............................. Apr. 22 October 488 1895 Hall, Benjamin M........................Nov. 19 March* 189 1913 Harper, Walter S................................. Feb. 15 August 394 1921 Hawley, William S................................ Apr. 20 June 298 1920 Herd, Walter ... . . . ..... Aug. 23 September 435 1889 Holt, Marmadtjke B............................... Dec. 26 February* 118 1928 Husk, Albert D .... ................June 9 December 580 1920 Hutchinson, S. Pemberton......................... Feb. 16 April 214 1926 Ivanoff, Constantine L............................ Mar. 7 June 298 1914 Jaeger, Frederick..... .............July 28 October 488 1891 Jennings, Robert E.......................Oct. 30 December 580 1922 Johnson, Homar L................................. Sept. 17 October 483 1927 Johnson, Homer H................................. Mar. 21 May 257 1918 Jones, Jesse L ..... ...............Jan. 22 April 214 1892 Jones, Thomas J................................... June 18 October 488 1883 JoOet, Cavalier H................................. Mar. 29 May 258 1881 Kennedy, John S . . . . ... ..........Apr. 22 August 394 1881 Kennedy,- Hugh.................................... May 23 September 435 1895 Kebvin, James H................................... September October 488 1926 Kkom, L. J........................................ Dec. 24 January* 64 1905 La Follette, Harvey M........................... Sept. 19 November 538 1920 MacDonald, Alexander............................ May August 394 1904 Marengo, Paolo................................... May 257 1925 Maxwell, Allison R............................... May 7 November 538

Jan 1, 1930

By H. F. Silliman, Daniel R. Hull, Earl W. Palmer

THE brass-rolling industry has not had a great deal of experience with antimony in its product. There have been some recent excursions with antimony as a corrosion inhibitor in tubes, but in sheet brass it has been regarded with apprehension and generally avoided. This is not to say that [ ] contaminations have never occurred, and probably a great many brass mill men have had their own ideas on the effect of such contamination. Our own views were based upon certain experiences some years ago with strip castings that split lengthwise in the early stages of rolling. The nature of this splitting is shown in Fig. I, from a photograph taken in 1922 as a record of 20 bars of 65-35 common brass made with an antimonial brand of copper. These bars were cast 6 ¾ in. wide by 1 in. thick by 45 in. long. In the first pass through the rolls, 19 of the 20 split lengthwise throughout their length, while each half curved outward in a wide arc as it emerged from the rolls. [ ] In those days, if splitting was not a frequent occurrence, it was not unfamiliar. One can recall periods of short duration when large amounts of common brass would behave in this way. There was nothing imaginary about these spells. The affected metal would split lengthwise in the breaking rolls, and no maneuvering of mill practice made any difference. The condition would descend like a plague, demoralize the mill for several days, and disappear. It is doubtful if anyone knew the cause-however many explanations may have been current. In 1921 a quantity of split brass was traced to the use of fired small-arms

Jan 1, 1943

By Sherwin F. Kelly

Twenty five years of exploration has shown that the "geophysical dollar" is worth $1780 in the Orange Free State, $1488 on the Witwatersrand, $85 in Sweden, $28,000 in the Transvaal and $3500 or more in the U.S.

Jan 6, 1951

By F. C. Canney

Geochemical prospecting seeks hidden mineral deposits by sampling for variations in the chemical composition of naturally occurring materials. Usually the samples are of soils and other products of weathering and erosion-surface materials extremely susceptible to contamination by human activities. Except when a survey is conducted well away from populated areas, contamination is an ever-present hazard. The program's success is particularly endangered when the contaminants are the elements sought; if these occur erratically throughout an area, spurious anomalies completely unrelated to mineralized areas can be formed. Evenly distributed contamination can be dangerous too, if it raises the background to such a level that true anomalies can no longer be easily detected. Suppose, for ex- ample, that in an area where the lead background is 20 parts per million the soil over a lead vein contains 1000 ppm of lead. Here the contrast would be 50 to 1, which is very satisfactory for geochemical surveying. Now if 1000 ppm of lead from some source were added evenly to the soil in this area, the contrast would be reduced to about 2 to 1, and the anomaly would no longer be readily detectable because a threshold of significance twice the value of the background is the minimum generally used for interpreting geochemical data.

Jan 2, 1959

By T. Sekimoto, T. Kokubo, M. Yamamoto, K. Masuda, T. Moro, H. Sakamoto

The choking-free cyclone was developed primarily to remove solid particles suspended in a slurry containing fibrous materials, such as municipal solid waste. This cyclone is characterized by a screw conveyor at the underflow side of the cyclone. The screw conveyor has a hollow rotational shaft for air supply and is driven by a variable speed motor for discharge control. Even if the underflow discharge is highly concentrated, this type of cyclone can be stably operated without nozzle choking. High classification efficiency similar to that of a conventional cyclone can be obtained as a result of air introduction through the hollow rotational shaft. The recovery of organic matter and the removal efficiency of inorganic matter were actually improved by the application of this cyclone to municipal solid waste. After applying this cyclone to the desliming of fine sand, sand product of low water content was recovered.

Jan 1, 1980

By AIME AIME

THE list of deaths during the year 1906 comprises the following names, the figures in parentheses indicating the year in which the persons named were elected to membership Members and Associates.-Arthur Vaughan Abbott (1882), William Anderson Akers (1889), R. Scott Allen (1905), George H. Arlett (1900), Thomas Septimus Austin (1883), Thomas T. Baker (1887), William Tittley Batchelor (1902), Charles Lowthian Bell (1897), Edgar Vallentine Bensusan (1892), George Lothrop Bradley (1874), Ernst Elmer Breisch (1896), Horace F. Brown (1895), James A. Burden (1876), Alexander B. Coxe (1880), George A. Crocker (1879), Albert W. Fiero (1886),

Jul 1, 1907

By J. B. Dyess

TARNISH films on some of the common metals (particularly on copper and silver) have been of much scientific and commercial concern for a long time, but before the development of the electrical method1 of measuring film thicknesses there was no satisfactory quantitative approach by which to study the separate parts of these complex films. This method has been adapted to the measurement of duplex (cuprous-cupric) oxide films on copper .2 In the present work it has been used to measure tarnish films on copper when they were mixtures of cuprous oxide and cuprous sulphide, and also when they contained cuprous oxide, cupric oxide and cuprous sulphide, each component part being measured at a different potential value. Oxide-coated copper specimens, prepared by heating copper in air at chosen temperatures for given periods, were exposed to moist hydrogen. sulphide in air to form the various oxide-sulphide films studied. The comparative resistances afforded by (1) different thicknesses of oxide films, and also (2) equal thicknesses of oxide and sulphide films, against severe attacks of hydrogen sulphide were measured. The electrical method requires that the time be observed for the cathodic reduction of each part of the film substance, and these respective time values multiplied by the constant current give the corresponding quantities of electricity expended. Then each millicoulomb per square centimeter represents a film thickness of T= MX10 8 2D X 96,494 X 103 (a) where M is weight of oxide (or sulphide) giving one gram-atom of oxygen (or sulphur) for cathodic reduction, D is density of the oxide (or sulphide) and t is the thickness in Angström units per millicoulomb per square centimeter. The value of t for cuprous sulphide (cubical) is 14.27, and is obtained by substituting 5.78 for D and 159.20 for M in equation a. Previous values2 of t for cuprous and cupric oxides (12.36 and 6.39, respectively) were used in the present work.

Jan 1, 1939

By P. B. Baxendell

The appraial of producing properties and profitability ntzalysis of a proposed capital expenditure are based on the same principles. In both problems a projection of future cash income is. cornpared to one or more capital expenditures. Several different methods have been in use either to compute a price to obtain a given earning power on the investment or to compute the earning power which will result from a given capital expenditure. One of these, the "Average Annual Rate of Return" method, computes in a simple manner the ratio of the present value of the future earnings after amortization to the present value of the undepreciated balances of the investment over the life of a project. This method, not well known generally, appears to have some rather unique advantages in reducing the computation work required, eliminating trial-and-error solutions, and providing a more accurate answer when applied to oil industry investments subject to the unit-of-production basis of amortization. Its derivation is given and its versatility demonstrated in the solution of certain everyday investment problems. A number of charts, useful in applying this method to profitability analysis and appraisal work, are provided. The current trend in the market values of producing properties is shown. INTRODUCTION Making sound capital expenditure decisions requires an objective means of measuring the productivity of individual investment proposals. Since the best measure of the economic worth of such proposals is their ability to produce profits, it is common practice to grade proposed capital expenditures according to their annual earning power as a percentage of the outstanding capital. The same principles which govern the determination of the rate of return of proposed capital expenditures also apply generally to the problem of determining the appraisal value or purchase price of income-producing oil and gas properties. Both problems are of prime importance in the producing phase of the oil business, where management is faced daily with decisions to drill or not to drill certain development wells, or with the determination of the appraisal value of producing properties. The common feature in both problems is that a projection of future cash income is compared with a known or estimated capital investment to determine itsiearning power or annual rate of return. In the case of development drilling, the cost of the proposed well can usually be estimated with a fair degree of accuracy and the problem consists of finding the rate of return on the invested capital. In the case of appraising producing properties, on the other hand, the desired rate of return is usually known in advance and the problem consists of determining the purchase price which, for the given income projection, results in the fequired rate of return. Certain accounting procedures common to the oil and gas producing business make these two problems and their solutions somewhat different from corresponding problems in other industries, and, in certain ways, simpler. The main difference is in the amortization policy which, for oil and gas production, is frequently on a unit-of-production basis, compared to the amortization on a time basis used in many other industries. The purpose of this paper is to discuss briefly the various methods currently in use for the measurement of productivity of invested capital in producing properties and, in more detail, the derivation and application of what will be called the "Average Annual Rate of Return Method". This rather interesting and not too well known method has some very definite advantages in the solution of many problems common to the oil industry. For the sake of simplicity, federal income tax considerations have been disregarded in the examples used, since they do not affect the principles involved. The use of the production payment route in the sale or purchase of producing properties, which has been amply covered in many other publications, has also not been included in this analysis. METHODS FOK MEASUKING THE EARNING POWER OF INVESTED CAPITAL, Of the many different methods used to measure the earning power of invested capital, four are applicable to oil or gas production ventures. Depending on whether these four methods utilize one or two interest rates, and whether a fixed amortization pattern is used, they may be classified as follows.