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By Paul E. Melancon, Vincent C. Kelley, Dale F. Kittel

Uranium of the Grants region occurs predominantly in continental sandstones of the upper part of the Jurassic Morrison Formation, but significant lesser deposits are found in limestone of the Jurassic Todilto Formation and in black shale of the Cretaceous Dakota Formation. The deposits are disseminations that form runs ranging from a few hundred tons to several million tons. The ore consists mainly of uraninite, uraniferous carbonaceous material, coffinite, and such secondary oxidized minerals at tyuyamunite, carnotite, and uranophane. In sandstone, the ore runs were locallized by mudstone, interstitial carbonaceous material, and primary sand channel trends. In limestone, ore deposition was related to folds and fracture zones. The great bulk of production has come from the Ambrosia Lake mines in the Grants district and the Jackpile and Paguate mines in the Laguna district. The ores, which generally have been 0.20 to 0.30 per cent U3O8, are treated at mills operated by Kerr-McGee Corporation, Homestake-Sapin Partners, and The Anaconda Company, all in the Grants district. In 14·years after discovery in 1950, the deposits had yielded concentrates valued in excess of $800,000,000. Since deposition of the Jurassic host rocks, a geologic history involving tilting, faulting, erosion, changing ground-water environments, and oxidation has considerably influenced the existence and character of the deposits. It is evident that their ongm is not simple. However, a degree of agreement appears probable for a pre-Dakota age for the original ore runs, and, at Ambrosia Lake, two principal stages of ore formation, separated by Laramide faulting, are recognized. All earlier ores have been modified by Quaternary oxidation, solution, and enrichment during which time much secondary tyuyamunite, metatyuyamunite, carnotite were formed.

Jan 1, 1968

By M. M. Singh, J. W. Brown

Three rocks of highly varied physical properties are selected for the first reported experimental study concerning microseismic activity of rock under tension to determine the effects of static fatigue, loading rate, repeated loading and rock anistropy compared to compression and bending loads. The microseismic method of detecting rock under deformation may be a great potential tool in surveillance and location in situ of dangerously stressed strata, as well as predicting rock failures. Noises emitted under load or the rate of energy (energy of noise pulses generated per unit time) are computed for varying conditions. The tests are conducted at constant load on a dead weight loading machine to eliminate all possible extraneous noises — an indispensable precaution — at various load levels. Experimental results are reported including the relation of total energy emitted to tensile strength of rock and the possibility of simulating a phenomenological model for microseismic activity. Plots of some of the experiments are included. INTRODUCTION Rock failure, whether on a large scale faulting in the earth's crust and rock bursts in mines, or on small scale ruptures of laboratory test specimens, generates transient vibrations in the rock mass. Mechanisms of intermittent deformation, such as twinning and cracking through and between mineral grains, also produce similar vibrations, but of very small amplitude. Such vibrations from both deformation and failure are referred to as microseismic activity, rock noise, or occasionally seismo-acoustical activity. An individual rock noise is sometimes

Jan 1, 1967

By George H. Jones

NO STRANGER phenomenon exists in the American mining industry today than the so-called bootleg anthracite industry in Pennsylvania which now produces probably close to 15 per cent of the total hard coal out- put of the State. Instead of being what - was first thought to be a temporary condition, countenanced because of the desperate condition of some of the miners at the depth of the depression. it is thriving now as never before. Re- ports of it have penetrated all over the world, as exemplified by inquiries concerning it in Durban, South Africa mentioned by John C. Cosgrove in his article in the July MINING AND META LURGY.

Jan 1, 1939

By Sherwin F. Kelly

One of the most succinct and illuminating perspectives of the field of geophysical exploration to appear in recent years is an article by E. A. Eckhardt, in the magazine Geophysics for October 1949. Although his review covers the year 1948, many of the data presented are apropos to a review of 1949, and form a pertinent background for a consideration of current progress. He presents charts of the world-wide distribution of gravimeter and seismograph activity in oil exploration, which show that surveys in the United States accounted for practically 68%; of all gravity work and 80%; of all seismic activity. Canada ranked second, with a proportion of roughly 6%, in each case; South America accounted for about the same percentage of seismic work, and double that amount for gravity surveys. Within the United States, Texas and Louisiana were the scenes of the greatest activity, both claiming about 60% of all surveys by each method.

Jan 1, 1950

By C. H. Wayman, D. W. Fuerstenau

The effect of bubble size and concentration of certain reagents on the terminal velocity, shape, path, and drag coefficients of single air bubbles in distilled water has been investigated. Bubbles of a certain size range rise considerably faster than Reynolds number-drag coefficient relationships predict, whereas a small amount of frothing agent reduces their terminal velocity. The rapid velocity at which bubbles rise in distilled water appears to result from slip at the boundary and from circulation within the bubbles. Surface-active agents retard bubble motion through prevention of both circulation and slip at the boundary. A surface tension concentration gradient helps maintain bubble sphericity. HE gas phase is one of the indispensible in-gredients in flotation operations. Flotation depends on the collision of an air bubble and a mineral particle in a pulp and their ability to remain in contact long enough for adherence to take place. Before it is possible to understand the mechanics of air bubble-mineral particle encounter, it is necessary to learn more about the nature of bubbles themselves before collision with a mineral particle has taken place. To date, little work has been done on air bubbles in flotation systems. In 1945 Fahren-wald' presented a study of the role of frothers on air bubbles and on aeration in flotation, and recently Wark and Sutherland' discussed the work of Rosenberg- in relation to flotation. The research reported in this present article was undertaken to investigate systematically the effect of bubble size and the concentration of certain reagents on the terminal velocity, shape, path, and drag coefficient of single bubbles in distilled water. Most of the work is concerned with the effect of a-terpineol on bubble motion in water, but studies were made with potassium chloride, potassium hydroxide, potassium ethyl xanthate, and potassium amyl xanthate. Experimental Method and Materials: To obtain free bubble rise and reduce wall and surface effects, the investigators used a tank of 5½x5½x30-in. internal dimensions, filled with water to within 4 % in. of the top.' The tank was made of acrylic plastic so that the walls would have good optical properties. Distilled water, which was re-distilled in a block tin still and saturated with air before each test, was used in all the experiments. All solutions were made with reagent-grade chemicals. During each experiment the water was at room temperature, and during the course of an experiment the temperature did not fluctuate more than 0.5°C. Since the experiments were performed over a period of six months, the temperature varied between 25° and 27°C. The temperature at which each series of experiments was conducted is recorded with the data. The experimental apparatus is presented dia-grammatically in Fig. l. Individual air bubbles were generated from purified compressed air through a capillary of 0.003-cm internal diameter at a rate

Jan 1, 1959

By L. E. Lynd

Ilmenite concentrates prepared from beach and dune sands of Florida, India, Australia, and other localities deviate to varying degrees from the theoretical composition of pure ilmenite, and generally contain more TiO2 than the formula FeTi03 would indicate, and some Fe2O3. This variation in composition is due to different amounts of altered ilmenite in the concentrates. (') The alteration has been shown to take place by oxidation and leaching of the iron in ilmenite, to yield residual products consisting of amaphous or very finely crystalline titanium dioxide and ferric oxide. Other studies(2) have stressed that ilmenite may alter first to an amorphous titanium-iron oxide, or to an amorphous mixture of titanium and iron oxides, with later alteration to crystalline titanium dioxide. There has been some speculation as to whether alteration of ilmenite is usually caused by weathering or by hydrothermal pr0cesses.(3,4,5 Three main methods of approach were used to study the mechanism and rate of ilmenite weathering. (1) Etch tests were used to learn the relationship between crystallographic orientation and the rate of chemical attack on ilmenite. (2) Altered ilmenites in New Jersey sands were compared with ilmenite in rocks of the area from which the sands were probably derived. (3) Experiments were carried out to determine at what rate, and by what agents, originally fresh ilmenite could be altered in the laboratory under simulated weathering conditions. ETCH FIGURES ON ILMENITE CRYSTAL PLANES A rather large ilmenite crystal from Sannidal, Norway, about 11/2 x 11/2 x 2 inches, bearing a few natural faces with imperfect surfaces, was prepared for etching by grinding and polishing crystal planes whose Bravais-Miller indices (referred to hexagonal axes) had been determined by X-ray methods to be 00.1, 10.0, and 10.2. Metallographic examination showed that the crystal was homogeneous, and uniform in orientation, except for the presence of twin lamellae which were oriented with their broadest surfaces parallel to the 00.1 planes of the large crystal. Since ilmenite is rather inert to standard etch reagents, strong solutions of hot sulfuric acid and cold hydrofluoric acid were used. Preliminary tests established that better etch figures were obtained using HF than with H2So4 solutions. The etch figures produced on 00.1 and 01.0 planes of ilmenite by etching 3 to 5 minutes in cold concentrated HF solution are shown in Figures 1, 2, and 3. The figures on 00.1 are "etch hillocks", rather than pits, and according to Honess(6), this phenomenon

Jan 1, 1961

By H. W. Fleming, R. R. Brooks

The Clearwater Deposit, a small occurrence of massive-sulphide mineralization enclosed in an envelope of disseminated-sulphide mineralization, was discovered as a result of an aeroelectromagnetic survey in New Brunswick in 1955. Subsequently, additional flights were made over the deposit and various ground follow-up methods were employed to ascertain the nature of their response. All methods proved to be capable of indicating the occurrence with varying degrees of precision. This paper is a presentation and a discussion of the magnetic and electromagnetic data, both airborne and ground, and the self-potential data obtained over this deposit. The attention of Canadian mining exploration companies was initially focussed on New Brunswick by the discovery, in 1953, of the Brunswick ore body. Ground electromagnetic surveys were of considerable assistance in locating and developing this deposit. In the following year, 1954, the Heath Steele base-metal deposits were discovered by employing an airborne electromagnetic device and ground electromagnetic surveys to follow-up the airborne indications. These discoveries demonstrated clearly that both airborne and ground electromagnetic techniques were applicable for locating the near-surface deposits of massive sulphides present in this region. Airborne electromagnetic equipment became available on a contract basis through Aeromagnetic Surveys Limited early in 1955 and was used extensively thereafter throughout a large portion of northern New Brunswick. It was as a result of one of these surveys with Aeromagnetic Surveys Limited equipment in the summer of 1955 that the Clearwater Deposit was detected. The airborne anomaly was located on the ground by means of an electromagnetic survey using a Swedish Slingram unit. During 1956, the region was investigated more thoroughly- in the hope that other sulphide bodies might be located. Airborne electromagnetic coverage was extended and the Clearwater Deposit itself was used as a testing ground for the various methods and types of equipment currently in use in New Brunswick. In this paper com prative data are presented for the airborne magnetic, airborne electromagnetic, ground magnetic and ground electromagnetic surveys over this deposit. The ground electromagnetic instruments used were the McPhar vertical-loop unit and the Slingram and Boliden horizontal-loop units. Self-potential surveys were carried out with a McPhar unit. From the geophysical point of view, all ground electrical methods employed indicated the presence and the extent of the massive-sulphide mineralization with a good degree of accuracy. The horizontal-loop methods however, defined the contacts more precisely as is to be expected when dealing with a flatly-dipping

Jan 1, 1961

By AIME AIME

OVER-ALL operations of the oil industry, as measured by production of crude oil and consumption of products, are almost exactly of the same magnitude as a year ago. Does this mean that the great oil industry has been undisturbed by the war? Has this industry, so vital to the prosecution of the war and to the maintenance of our way of life, been unaffected in its operations? No indeed - changes within the industry are great. It has been called upon to revamp its trans¬portation methods so as to move about one fourth of the total amount of crude and refined products by railroad tank car instead of by ocean-going tankers. Its fundamental internal economy, based on maximum gasoline yield from a barrel of crude, has been relegated to memories of the past. Rationing of oil products, which has been forced upon us in face of an abundant supply, is not only disagreeable medicine but is in itself completely disruptive to the marketing end of the-business.-

Jan 1, 1942

E. Windsor Richards, London, England:—In reading this paper the most interesting point to me mas the question of the maximum percentage of phosphorus allowable in the steel rail. Mr. Colby said, and we will all agree with him, that the engineer knew, and even a steel-rail maker grants that phosphorus is the most undesirable constituent of steel. We in England have been for a long time considering a specification for the supply of steel rails. This matter has been taken up by the Institution of Civil Engineers, the Mechanical Engineers, the Iron and Steel Institute, the Institute of Naval Architects, and the Electrical Engineers. Committees have been formed,and the whole matter has received most careful attention. They arrived at last at an analysis which I will read: " The carbon is to be from 0.35 to 0.5 per cent.; the manganese from 0.7 to 1.0 per cent.; the silicon, not to exceed 0.10 per cent.; phosphorus, 0.07; and sulphur, 0.07 per cent." As to the phosphorus, which is the most important point of all in the analysis, we have for many years, and indeed until very lately, always agreed to supply steel which would not contain above 0.06 per cent. of phosphorus. Iron-ores are not quite as good now as they were formerly, and the manufacturers at the meetings of the committees referred to, tried to obtain an increase in the allowance of phosphorus. They asked the Sub-committee to agree to 0.08 per cent. of phosphorus. They tried all they possibly could to obtain that; but they failed. English engineers in Great George Street and all over England, representing the important Associa tions I have mentioned, would only agree to 0.07 per cent. and that is the maximum allowance of phosphorus. Mr. Colby is an able advocate, but with all his ability he would not have been able to persuade the English engineers to agree to 0.08 per cent.

Jan 1, 1907

By W. A. Scheuch

ORDINARILY secondary copper, unless electrolytically refined, is reclaimed directly as foundry ingots used in the manufacture of copper-rich alloy castings. This use does not require the elimination of the impurities to the degree required if the recovered metal is to be used for electrical purposes where a high electrical conductivity is of prime importance. However, as a part of the general policy of reusing its own scrap and by-products wherever possible, the Western Electric Co. at its Hawthorne Works is recovering its secondary copper as wire bars which are delivered to its own rod and wire mill and there processed into wire of high electrical conductivity. This departure from the usual recovery scheme has been accomplished through the careful classification and sorting of the material entering the furnace charges and the careful control of the subsequent melting and refining in a reverberatory furnace. Tests conducted over a period of approximately four years have shown that the quality of wire bars produced from selected secondary copper is equal to that of wire bars produced by the electrolytic refineries. The interest which has been exhibited in the process by those who have seen it has prompted the following general description. It is the authors' opinion that the recovery of secondary copper will become more and more an important factor in the copper production industry. The description is largely of the refining furnace and its operation, but it must be remembered that careful classification and sorting of the scrap materials to eliminate impurities are just as important as the furnace operation toward obtaining a satisfactory final product. Classification and sorting do not lend themselves easily to description; they must just be done. It should also be recognized at the outset that constant intelligent supervision is requisite to the success of the process because there are so many ways in which impurities can find their way into the final product.

Jan 1, 1929

By W. F., Dietrich

THIS paper deals with the- methods of mining the high-grade clays of California. Although the majority of the clay pits in the state are operated on a scale that is small by comparison with most metal mines, this very fact results in a diversity of methods and gives rise to problems of selection of the method best suited to given conditions. Two or three operators in California produce approximately 500 tons per day of a single kind of clay from a single pit. About five varieties of clay are mined on a scale of 200 to 400 tons per day; not over fifteen varieties are mined on a? scale of 50 to 200 tons per day; and more than 50 varieties are mined at a rate of less than 50 tons per day. It is the aim of this paper to delimit, insofar as the data at hand permit, the conditions and scale of operations that favor the selection of each dominant method of mining that is actually being applied at California properties. Details of the occurrence and utilization of the clays of California have been given in a recent bulletin and are not considered here.

Sep 1, 1928

By Paul M. Tyler

THE farmer pays the phosphate miner! Phosphorus is used in fireworks; goes to battle in military smoke screens, incendiary shells, and tracer bullets; and, in vermin destroying pastes, does its part in the war against insects. A lemon phosphate can be had for a nickel at most soda fountains, and tens of thousands of tons of phosphate rock are mined annually for use in the food industries, chiefly for making monocaleium phosphate baking powder. Sodium phosphate cleaning, washing, and scouring compounds consume substantial quantities: the iron and steel industries buy a few thousand tons yearly to make ferrophosphorus and to balance foundry-iron furnace charges; and even nonferrous metallurgists use a little for phosphor bronze and other alloys. Phosphoric acid, its salts, and diverse other derivatives of this versatile element have countless applications, and industrial outlets are increasing rapidly, especially in the United States. Nevertheless, in this country nearly 90 per cent and in the whole world fully 95 per cent of the phosphate rock consumed is absorbed ultimately in agriculture.

Jan 1, 1938

By Charles Will Wright

MINERAL production in almost all European countries suffered a sharp setback because of the war. Plants were damaged, transportation facilities disrupted, and labor dispersed and demoralized. Since the war, due to lack of confidence and economic stability, there has been little incentive to rebuild and expand the mineral industries even though a big demand at high prices exists for mineral products. Most mining and metallurgical companies in Europe hesitate to invest their capital because of the tendency towards nationalizing industry, high taxes, and low output of labor, as well as the deficiency of mine supplies and equipment within their countries. In short, they do not have faith in the future, and for these same reasons and fears most of the mining companies in America will not risk capital investment in Europe. In Europe, including the United Kingdom, free enterprise has been losing ground and as a result the foundation of their economic welfare is being undermined. American mining interests willing to take the initiative could help in counteracting this influence if a way were found for them to co-operate with the European producer without too great a risk.

Jan 1, 1948

By A. M. Gaudin, J. H. Brown

In a survey of the effects of heat treatment on the comminution of various rocks, it was found that unusual size distributions often characterize the broken products, and that this is related to a great increase in intergranular fracture1. It is the purpose of the present paper to contribute to an understanding of this effect. In a thesis by one of use, critical consideration was given to many mechanisms which could conceivably be responsible for the increased intergran-ular fracture. It was shown that neither gross chemical changes nor intergranular corrosion are required. Among non-chemical mechanisms the most likely appeared to be (1) Uneven expansion due to thermal gradients, giving spalling (2) In a manner similar to that prevailing in metals, the appearance at high temperature of intergranular weakness. (3) Unequal thermal expansion of adjacent grains. Experiments were designed and conducted to permit a choice among the many alternative mechanisms and in particular among the three listed here. EXPERIMENTAL MATERIALS Tests were made on the materials listed in Table 1. Of each material, only lumps similar in composition and grain size were used. The three marbles listed in Table 1 were analyzed to assure that their chemical compositions did not differ greatly (Table 2). On the basis of the chemical analyses, of differential thermal analyses, and of X-ray powder diffraction patterns, it appeared that the marbles were very similar except for their grain sizes.

Jan 1, 1961

By R. G. Bentsen, D. A. T. Donohue

The cyclic steam injection process has become the most widely applied and most successful thermal recovery technique in use today.1-4 Normally, steam stimulation is repeated several times during the life of a project. The problem is to select the optimum number and size of steam treatments so that the profits realized over the entire life of the project are maximum. Obviously, operating costs rise directly with the frequency and amount of steam injection. Operating efficiency, on the other hand, can be adversely affected if the amount and frequency of stimulation are insufficient. Thus arises a multistage decision problem; that is, a decision must be made at each sub-period (day, for example), as to whether steam should be injected, and, if so, how much. It is desirable that these decisions be made in such a way as to secure maximum net profit before taxes. This can be achieved by dynamic programming. To use dynamic programming, we must be able to predict not only the production rate-time curve resulting from a given stimulation, but also how changes in stimulation policy will affect this curve. In this study, the effect of steam injection on well performance is estimated on the basis of a simple model that takes into account both steady-state and transient flow. Oil production rate is calculated for both types of flow, and the larger of the two values is used. This allows the calculation to change to radial steady-state flow at such time as this mechanism becomes more effective than the transient mechanism. We propose to show how dynamic programming can be used to optimize the steam soak process with respect to net profit. For this, a mathematical representation of the steam soak technique is necessary. A further objective, therefore, is the formulation of a mathematical model capable of realistically simulating the physical process. Oil Production Response Model The advantage of using a mathematical model is its generality and ease of manipulation. However, the model must be an accurate representation of the physical process, for a solution derived from a model can be no better than the model itself. The question now arises as to how well the model should be expected to simulate reality. In general, the simplest model should be tried first, for additional accuracy is apt to require additional cost and time. Also, the search for a high degree of accuracy may yield only greater complexity and difficulty without yielding significantly better results. With this in mind, we kept our model as simple as possible, yet generally representative of the actual physical process. The number of state variables is limited to three, and stochastic variations in the parameters are ignored. As a consequence, use of this model should be restricted to cases in which the underlying assumptions are not severely violated. In

Jan 1, 1970

By Pual M. Tyler

BLIZKRIEG tactics in the present war have consumed metals on such a profligate scale that some of the best-laid procurement plans for civilian and military needs of even a year ago seem in retrospect incredibly meager. Conservation of raw materials has reached an all-time climax in Germany, where metals are worth more than human life and throwing away an empty toothpaste tube may be legally punished by death. Even the United States and the British Empire, proud masters of nine tenths of the world?s known mineral reserves and processing plants, are being driven to metals and feverishly expanding production facilities that not long ago were deemed overbuilt. After the war is over and inevitable postwar readjustments are completed, it is reasonable to expect that purchasing power ? or at least the ability to procure the comforts and luxuries of life ? will be distributed among vastly larger population than ever before, accelerating the rising trend in demand for industrial raw materials in ever greater quantity and variety.

Jan 1, 1942

By S. H. Ward

Since the advent of the first airborne electromagnetic system, it has been evident that such systems were inherently limited to shallow depths of exploration of the orderof 100 to 200 feet. Hence in 1948 the author and his associates commenced a study of the feasibility of applying natural audio frequency magnetic fields to investigation of the electrical properties of the subsurface in order to provide a system capable of overcoming this limitation. This research culminated, in the summer of 1958, in the development of a new airborne prospecting device — AFMAG. This device has detected surface massive sulphide bodies while flown at heights as great as 3000 feet. Hence, by inference, it is deduced that it could find similar sulphide bodies if they were buried 2500 feet below surface and the aircraft flown at 500 feet. Thus a considerable improvement over conventional airborne electro-magnetic systems is obtainable with AFMAG. Airborne exploration in mountainous terrain involving deep valley fill now becomes possible. Examples are presented of the results of actual airborne AFMAG test surveys over known deposits of massive sulphide mineralization. Interpretation of the data is discussed with particular reference to the knowledge of size, dip, depth, depth extent, and conductivity of causative bodies as deduced from the flight records. The possibility of mapping major geologic structures, for both mining and oil exploration purposes, is discussed with the aid of examples of airborne AFMAG data. INTRODUCTION Electrical prospecting with natural audio frequency electromagnetic waves as a source has, within the last three years, become a practical reality. Both airborne and ground survey instruments under the trademark "AFMAG" (for audio frequency magnetics) have been used successfully in the search for conductive mineral deposits. It is the object of this paper to discuss the principles of airborne AFMAG and to illustrate its application by means of examples obtained over known geological situations. WHY AFMAG? In view of the large number of good airborne electromagnetic systems available for purchase or contract surveying, one may well ask, "Why another new system?". Primarily the answer lies in the fact that AFMAG does not suffer from the very limited depth of exploration available with, and inherent in, any conventional airborne electromagnetic system. AFMAG is not conventional insofar as an artificial transmitter is not required. Only a receiving and detecting device is employed. The electromagnetic fields measured are those from millions of electrical discharges in the atmosphere (e.g;..- lightning strokes). Their random distribution in time and space make these fields difficult to employ and it is only with recent advances in the electronics of geophysical instrumentation that this has become possible. A second reason for AFMAG and one of its

Jan 1, 1961

By Bradley Stoughton

A LL over our great country I have been privileged to see, during the last six weeks, the manifestation of a new spirit among engineers. Partly under the inspiration of leaders whose influence has been felt not only nationally, but internationally, - partly through the recognition of the service that engineers have been able to render to the nation during the recent crisis, a new self-consciousness has been acquired by the individuals, and now this self-consciousness seeks expression in opportunities for service and participation in public affairs. The engineer . no longer sees himself a mere reservoir of information to be tapped when some one is in need of cold facts, no. more an administrator of mere material things, but a potential administrator of- public affairs, a citizen and a human being, with the responsibilities, as well as the privileges of citizenship.

Jan 1, 1920

By Cyril S., Smith

WE cannot but marvel at the fact that fire is necessary for almost every operation. It takes the sands of the earth and melts them-now into glass, now into silver, minium or other lead or some substance useful to the artist or physician. By fire, minerals are disintegrated and copper produced; in fire is iron born and by fire is it subdued; by fire, gold is purified; by fire, stones are burned for the binding together of the walls of houses.... Fire is the immeasurable, uncontrollable element, concerning which it is hard to say whether it consumes more or produces more." Thus wrote Pliny in his "Natural History," that great collection of fact and error which constitutes the principal contemporary description of Roman technology and which until the seventeenth century was the authority most often quoted and requoted by those who wrote on metals, as on many other subjects.

Jan 1, 1940

By R. E. Allen

THERE was once a time when a practical oil man would appraise or buy a producing property on the basis of from $200 to $500 per barrel of average daily settled production. Curtailment-has, for the present at least, caused a virtual abandonment of the "barrel -of settled production" as a yardstick of, oil property value and in its place has come the "barrel of allowable production," which, although an artificial thing, is nevertheless now the principal factor governing the rate of ?pay out? or investment return. The potential production of a well, settled or otherwise, is of less importance in determining the present worth of a well than is the rate at which it may be produced. Speaking only of true potential for the moment, it is obvious that of two similar wells having the same potential, the one having the highest rate of allowable production would be worth proportionately more than the one of lesser allowable. The discount factor for deferred return and risk can easily vary the present values of the two wells by as much as 20 per cent when allowable rates are not greatly different.

Jan 1, 1934