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By G. Thodos, W. F. Stevens

The point-source function introduced by Horner' us a solution to the general unsteady-state equation for the flow of fluids through porous media has been utilized to calculate pressure profiles for adjacent wells as a function of time. By trial and error, the time at which the pressure waves meet to cause interference can then be calculated. For this calculation, the time of interference is arbitrarily defined as that time when both pressure waves exhibit a pressure decrease of 25 psi ar the same point within the formation. To illustrate the method, an example involving two adjacent wells producing at different rates has been worked out and is presented in detail. INTRODUCTION The initiation of production of a new well is usually accompanied by pressure drawdown measurements in order to establish the extent and characteristics of the formation. The interpretation of such pressure drawdown data is based on mathematical developments involving a single well in an infinite reservoir. If more than one well is present in a reservoir, the possibility of interaction between wells exists. Therefore, care must be taken in interpreting the pressure drawdown data. It becomes important to be able to determine when this interaction, or interference, becomes significant. This paper presents a method for the prediction of the approximate time of interference between two such adjacent wells. The basic differential equation describing the pressure distribution existing during unsteady-state flow of a slightly compressible fluid has been solved by Hor-ner.' for a constant production rate from a circular homogeneous reservoir of infinite extent. The solution utilizes the point-source function to define the pressure at various points within the formation as a function of time. The resulting expression is: q = production rate, STB/D ,;= formation volume factor, dimension-less µ = fluid viscosity, cp k = formation permeability. md H = formation thickness, ft C - fluid compressibility, psi' F = formation porosity, dimensionless R = distance from centerline of well, ft T = production time, hours Ei(—u) = Ei-function of U Eq. 1 may be used to calculate the pressure profiles generated during production from a single well in an infinite reservoir.

By B. B. Zavoico

During 1936 the Russian oil industry made very satisfactory progress and, while not all difficulties of organization have been ironed out, the country is now assured of a supply of petroleum products in sufficient quantities and of quality demanded by modern motor equipment. The year 1937 promises to better by a wide margin the good showing of 1936. The statistics given in this paper for the first time take into consideration the varying gravities of crude oils of the several Russian oil fields instead of using a flat conversion factor of 7 bbl. per metric ton. It was found from the detailed study that the generally used average conversion factor should be increased from 7 to 7.25 bbl. per metric ton, the figure varying, of course, with the gravity of oil in the individual fields. Crude-oil production during 1936 is estimated at 201,500,000 bbl. as compared with 182,970,000 bbl. produced in 1935, an increase of 9.4 per cent. The greatest increase was again recorded in the Baku district, which increased its production by 10.9 per cent, from 141,257,000 bbl. in 1935 to 158,300,000 in 1936. Grozny district maintained its production at a level of about 23,000,000 bbl., but its old fields continued to decline and production was sustained by the development of newer fields. A great advance was made in drilling speeds and the total footage in 1936 reached 6,694,200 ft. as compared with 4,926,600 ft. drilled in 1935, an increase of 26.4 per cent. In older deep fields, producers were being completed at over 8000 ft.—a great depth for Russian drillers but two years ago. Several major discoveries were made in 1936. Northeast Caucasus.—Izberbash, east from Grozny and on the Caspian Sea, was the outstanding discovery, the initial production of the discovery well being around 3000 bbl. per day from about 5000 ft. The importance of the field is due to the large area of the structure, half of which, however, is under the sea, and also to its strategic location on the shores of the Caspian and near a trunk pipe line to the Grozny refining center. An active development program is being pursued in Izberbash and its 1937 production quota is set at 7,500,000 bbl. Achi-Su field, near Izberbash, also discovered during 1936, while not as prolific as Izberbash, is thought to cover a very large area and the small

Jan 1, 1937

By AIME AIME

ON May 5, the Washington, D. C., Section, A.I.M.E., devoted its meeting to the many-sided and perplexing question of mineral stock-piling for peace. Opening the symposium, Harry J. Wolf, of the War Production Board, outlined the problem under six heads: (1) Technical. Mechanical, chemical, or metallurgical importance of specified materials, emergencies that might arise, relative scarcity, and critical value of stock piles during emergencies. (2) Economic. Cost to Government, influence of Government stocks on commercial relationships and markets, effect of availability of items as a con¬structive influence on industry, Administration policies now and during postwar period. (3) Legislative. Need for immediate legislative action, need for legislation on postwar conditions as well as on current requirements, a constructive basic policy to prevent political manipulation. (4) Military. Consideration of re¬quirements and supplies bearing on national safety and needed for manufacture of equipment, and adequate reserves of scarce materials for research or experimentation by military agencies. (5) International. Interests of the United Nations in contradistinction to those of the United States; effects of nonisolation policy on nature, location, and administration of stock piles. (6) Negative stock-piling. Question of United Nations' legislation to prevent stock-piling by Axis nations after the war and who shall purchase stock-pile materials and during what periods.

Jan 1, 1943

By Oliver Bowles

A NORTH CAROLINA miner dreamed that he found high-grade mica by excavating a certain corner of his mine. The next day he sank a hole on the exact spot and found mica of excellent quality. The dream came true. May not this be as good a method as any yet known for forecasting the valuable mineral content of pegmatites? The Federal Geological Survey has found in its recent detailed studies in New England that good sheet mica occurs most abundantly in zoned pegmatites, particularly in zones lying along the wall or contact of the pegmatite mass. Although this conclusion may be a valuable guide, pegmatite mining operations must still be classed as most uncertain and hazardous enterprises. Finding of the second largest diamond ever discovered in the United States-a stone of good gem quality weighing more than 34 carats-during the course of a horseshoe pitching contest at Peterstown, W. Va., is another example of unorthodox mining methods. These should not be considered, however, as characteristic mining methods developed in 1944.

Jan 1, 1945

By J. Spotts McDowell

Ackowledgments........................... 5 Introduction............................. 5 The Silica Minerals. Stability Relations......................... 6 Optical Properties........................ 9 Density.............................. 10 Melting Points....;..................... 10 Thermal Expansion..................,..... 10 Solubilities............................ 12 Identification of Cristobalite and Tridymite.............. 12. The Silica Refractories. Raw Materia1........................... 13 American Deposits....................... 13 Properties Determining Usability................ 15 Expansion on Heating..................... 16 Texture........................... 17 Silica Brick............................ 17 Manufacture........................... 18 Properties of Silica Brick .................... 19 Analysis ......................... 19 Density......................... 19 Porosity......................... 20 Strength....................... 21 Melting Point....................... 22 Specific Heat....................... 22 Thermal Conductivity................... 23 Expansion........................ 24 Effect of Rapid Temperature Change.........:... 26 Constitution......................... 26

Jan 1, 1918

Organization Place Date 1919 American Chemical Society :.... Philadelphia, Pa. Sept. 2-6 National Assn. of Stationary Engineers Huntington, W. Va. Sept. 8 American Peat Society Minneapolis, Minn. Sept. 22-24 American Iron, Steel Electrical Engineers St. Louis, Mo. Sept. 22-26 American Institute of Min. and Met. Engineers. Chicago, Ill. Sept. 22-27 American Steel Treaters' Society, First Annual Convention Chicago, Ill. Sept. 22-27 National Exposition of Chemical Industries.... Chicago, Ill. Sept. 22-27 National Safety Council Cleveland, 0. Sept. 29-Oct. 2

Jan 7, 1919

By Samuel M. Shallcross

The principal function of the Bell limestone mine, of the American Lime & Stone Co., at Bellefonte, Pa., is to supply raw material to the company's modern rotary kiln plant at Bellefonte. Because mining costs are naturally higher than many open quarries with more favorably lying strata, it cannot compete, except to a limited extent, in the markets for road material and fluxing stone. In the broad sense, mining does have an advantage over the average open quarry when the end products are designed for and controlled by process and final inspection for the exacting demands of the industrial and chemical markets. Approximately 80 per cent of the output of the Bell mine is sold in the industrial and chemical markets. And as higher standards are set each year for construction and agricultural work, the remainder of the mine output goes to these two classes. Mining produces more fines than open quarries, and these fines are difficult to market; on the other hand, owing to absence of contaminating clay and impure rock, a greater percentage of the output of a mine is marketable. Because of the great production of fines, rotary kilns for lime burning are necessary when the stone must be mined. In 1921 the American Lime & Stone Co. operated 19 quarries and 72 lime shaft kilns spread over an area of 40 miles between Bellefonte and Altoona, Pa. At that time the lime-production capacity of the 72 kilns amounted to approximately 700 tons per day. After 15 years the company operates three rotary kilns and six shaft kilns, with a combined output of approximately 500 tons of lime per day, concentrated in its single Bellefonte plant (Fig. 1). Its only stone-producing plants are now the limestone mine at Bellefonte and a construction-stone open quarry at Union Furnace, near Tyrone, Pennsylvania. Since the middle of 1922, the management of the American Lime R. Stone Co. has been under the direction and ownership of the Warner Company, of Philadelphia. To the Warner Company's experience, gained through successful operation of lime plants in eastern Pennsylvania for many years, and the successful solution of material-handling problems

Jan 1, 1937

By A. A. Bauer, H. A. Saller, F. A. Rough, J. R. Doig

among uranium alloy systems are the U-Zr, U-Ti,and U-Mo binary systems, in that an intermediate phase, of limited solubility range, exists in each system. These intermediate phase alloys offer a promising field of investigation, both as binary alloys and as ternary alloy combinations. While a limited amount of work has been done on the binary alloys, none has been done on ternary combinations of these alloys. As a possible prelude to more intensive investigation of these systems, a study of the phase relationships between the 6 phases of the U-Zr and U-Ti systems was undertaken. The solid-state portions of the binary constitutional diagrams for the U-Ti,1 Zr-Ti,2 and U-Zr3 systems are shown in Fig. 1. The solid to liquid transformations are not shown, as these transformations were not studied in the ternary system. The phase designations employed are based upon those shown in the uranium constitutional diagrams. The crystal structures of the various phases are given in Table I. Experimental Materials and Methods The ternary section presented is based upon the results of thermal, metallographic, and X-ray analyses of a series of alloys ranging in composition between the phases of the U-Zr and U-Ti systems (U-74 atomic pct Zr to U-35 atomic pct Ti). After preparation of the alloys, thermal data were obtained. On the basis of these data, specimens were heat treated and examined metallographically. Specimens were then selected from those heat treated for X-ray determination of the phases present in what were considered critical phase regions. Alloy and Specimen Preparation—Alloys for this investigation were prepared from selected as-reduced uranium and crystal-bar zirconium and titanium. For nominal compositions, see Table 11. Charges were arc melted from five to seven times under a helium atmosphere, finally being cast into wire-bar form for fabrication. A zirconium getter button was used to clean the furnace atmosphere prior to melting. The alloys were homogenized 20 hr at 900 °C and furnace cooled. A portion of each bar was then removed for thermal analysis; the remainder was saved for fabrication. Alloys 8 through 14 were placed in steel tubes along with zirconium getter chips and, after flushing with argon, the tubes were welded shut and rolled at 1500 °F to a 50 pct reduction in diam. The remaining alloys were annealed 24 hr at ll00°F to insure transformation of the ? phase to the 8-U2Ti phase and were then hot rolled from a salt bath. Attempts to roll alloys 6 and 7 at 1100 °F were unsuccessful. Following this, attempts were made to roll pieces of alloys 1 through 5, which had cracked rather severely during casting, at 1200 °F, but these efforts were also unsuccessful. These alloys were, therefore, further treated in their cast and homogenized condition. All alloys were pickled to remove oxide formed during rolling. Thermal data were obtained on these alloys by conventional differential thermal analysis at a heating rate of 30C per min, and by a high-speed heating method at rates of approximately 10°C per sec. For the latter method of analysis, a 36-gage Chromel-Alumel thermocouple is spot welded between two slivers of alloy, the sandwich being en-

Jan 1, 1958

By Raymond D. Sloan

Retaining third place in crude-oil production among the nation's oil-producing states, Oklahoma's output in 1942 totaled 137,792,000 bbl., a decline of 9.4 per cent from the previous year's total of 152,117,000 bbl. Production declined from an average of 403,000 bbl. daily in January 1942 to an average of 355,000 bbl. during December, a reduction of 48,000 bbl. daily (11.9 per cent) during the year. At the end of 1942 it would appear inevitable that the downward trend in production will continue in 1953 unless halted in the immediate future by greater than normal discoveries and development. To Jan. I, 1943, Oklahoma has produced 5,067,013,000 bbl. oil crude oil. Development and Exploration Development dropped abruptly in 1942, reflecting the lack of any sizable discoveries and the effect of the provisions of Federal Well Spacing Order M-68, which became effective in December 1941. In all, 1210 wells were drilled in 1942. This represents a decrease of 42.7 per cent from the 1941 total of 2110. Of the total wells completed, 553 (45.7 per cent) were oil wells with an average initial production of 443 bbl.; 102 (8.4 per cent) were gas wells with an average initial of 3,359,000 cu. ft.; and 555 (45.9 per cent) were dry. Although the number of completions declined sharply, the total of 320 wildcats completed (26.4 per cent of all wells) repre-sents a decrease of only 2.7 per cent from the previous year's figure of 329. Of the wildcats drilled, 44 (13.8 per cent) were oil wells, 13 (4.0 per cent) were gas wells, and 263 (82.2 per cent) were recorded as failures. Reconditioning of wells throughout the state resulted in a total recompletion of 355 wells. Of these, 234 were oil wells with a combined initial production of 96,808 bbl., 32 were gas wells with a total initial of 381,488,000 cu. ft., and 89 were abandoned. None of the 26 pools found in 1942 has developed into a major discovery. The Pauls Valley pool, Garvin County, is the most outstanding. Since its discovery in April, 14 wells with an average initial of 1898 bbl. have produced 803,000 bbl. of 42' gravity oil from the Bromide zone. Development in this pool is believed to be almost completed. Other of the more important discoveries are the East Watchorn pool, Pawnee County; Guthrie Townsite and West Navina, Logan County; Brooksville and Macomb, Pottawatomie County, and the Liberty and Northeast Lucien discoveries in Noble county. The East Watchorn pool, at the close of the year, had 14 completed oil wells with an average initial of 989 bbl. from the Wilcox sand at 3930 it.; Guthrie Townsite, one well with an initial of 840 bbl. from dolomite at 5600 It.; West Navina, six wells with an average initial of 284 bbl. in the Lay ton sand at 5050 ft., Brooksville, eight wells in the Hunton at 4800 ft. with an average initial 01 355 bbl.; Macomb, one well with an initial of 160 bbl. in the IIunton at 4700 ft.; the Liberty pool, one well with an initial of 1268 bbl. in the second Wilcox at 4500 ft., and two wells in the Tonkawa sand at 2500 ft., with an average initial of 230 bbl. In the Northeast Lucien pool, four wells were completed in the Wilcox at 5380 ft. for an average initial of 1164 bbl., and one well was completed in the Viola lime at 5255 ft. for an initial of 55 barrels.

Jan 1, 1943

By Raymond D. Sloan

Retaining third place in crude-oil production among the nation's oil-producing states, Oklahoma's output in 1942 totaled 137,792,000 bbl., a decline of 9.4 per cent from the previous year's total of 152,117,000 bbl. Production declined from an average of 403,000 bbl. daily in January 1942 to an average of 355,000 bbl. during December, a reduction of 48,000 bbl. daily (11.9 per cent) during the year. At the end of 1942 it would appear inevitable that the downward trend in production will continue in 1953 unless halted in the immediate future by greater than normal discoveries and development. To Jan. I, 1943, Oklahoma has produced 5,067,013,000 bbl. oil crude oil. Development and Exploration Development dropped abruptly in 1942, reflecting the lack of any sizable discoveries and the effect of the provisions of Federal Well Spacing Order M-68, which became effective in December 1941. In all, 1210 wells were drilled in 1942. This represents a decrease of 42.7 per cent from the 1941 total of 2110. Of the total wells completed, 553 (45.7 per cent) were oil wells with an average initial production of 443 bbl.; 102 (8.4 per cent) were gas wells with an average initial of 3,359,000 cu. ft.; and 555 (45.9 per cent) were dry. Although the number of completions declined sharply, the total of 320 wildcats completed (26.4 per cent of all wells) repre-sents a decrease of only 2.7 per cent from the previous year's figure of 329. Of the wildcats drilled, 44 (13.8 per cent) were oil wells, 13 (4.0 per cent) were gas wells, and 263 (82.2 per cent) were recorded as failures. Reconditioning of wells throughout the state resulted in a total recompletion of 355 wells. Of these, 234 were oil wells with a combined initial production of 96,808 bbl., 32 were gas wells with a total initial of 381,488,000 cu. ft., and 89 were abandoned. None of the 26 pools found in 1942 has developed into a major discovery. The Pauls Valley pool, Garvin County, is the most outstanding. Since its discovery in April, 14 wells with an average initial of 1898 bbl. have produced 803,000 bbl. of 42' gravity oil from the Bromide zone. Development in this pool is believed to be almost completed. Other of the more important discoveries are the East Watchorn pool, Pawnee County; Guthrie Townsite and West Navina, Logan County; Brooksville and Macomb, Pottawatomie County, and the Liberty and Northeast Lucien discoveries in Noble county. The East Watchorn pool, at the close of the year, had 14 completed oil wells with an average initial of 989 bbl. from the Wilcox sand at 3930 it.; Guthrie Townsite, one well with an initial of 840 bbl. from dolomite at 5600 It.; West Navina, six wells with an average initial of 284 bbl. in the Lay ton sand at 5050 ft., Brooksville, eight wells in the Hunton at 4800 ft. with an average initial 01 355 bbl.; Macomb, one well with an initial of 160 bbl. in the IIunton at 4700 ft.; the Liberty pool, one well with an initial of 1268 bbl. in the second Wilcox at 4500 ft., and two wells in the Tonkawa sand at 2500 ft., with an average initial of 230 bbl. In the Northeast Lucien pool, four wells were completed in the Wilcox at 5380 ft. for an average initial of 1164 bbl., and one well was completed in the Viola lime at 5255 ft. for an initial of 55 barrels.

Jan 1, 1943

Organization Place Date 1919 American Chemical Society Philadelphia, Pa. Sept. 2-6 National Assn. of Stationary Engineers Huntington, W. Va. Sept. 8 American Peat Society Minneapolis, Minn. Sept. 22-24 American Iron, Steel Electrical Engineers St. Louis, Mo. Sept. 22-26 American Institute of Min. and Met. Engineers. Chicago, Ill. Sept. 22-27 American Steel Treaters' Society, First Annual Convention Chicago Ill. Sept. 22-27 National Exposition of Chemical Industries.... Chicago, Ill. Sept. 22-27 National Safety Council Cleveland, O. Sept. 29-Oct. 2

Jan 8, 1919

By Evan Evans

IT is appropriate to evaluate 1947 in review as a year of a peacetime record production of about 676,000,000 tons of coal (anthracite and bituminous), closely approaching the extraordinary wartime output in 1944. Considering the general price-wage inflation, it is in point to note that the coal industry sustained the highest wages paid to workers in any major industry, but that coal prices at wholesale levels have risen much less percentage wise than the average for all commodities. The sellers' market continues to prevail. In addition to serving our own country's enormous needs, our coal industry is exporting extraordinary tonnages overseas. This unusual export demand is likely to continue for a while. Moreover, the demand in Europe for American coal mining machinery is a real tribute to the management efficiency of our modern mechanized coal industry. Competitively, the petroleum industry is concerned over its long-term supply, and already a synthetic fuels industry is being publicly advocated. In due time coal and lignite are bound to be

Jan 1, 1948

By Charles R. Keyes

Discussion of the paper of Charles R. Keyes, Bi-Monthly Bulletin, No. 19, January, 1908, pp. 1 to 31. BERNARD MACDONALD, Guanajuato, Mexico (communication to the Secretary*) :-Mr. Keyes's paper is very interesting to me because of my personal experience with the development of the ore-deposits of Lake Valley. Seeing that many of the important facts connected with the early history of the development of these mines are either now unknown, or have become more or less distorted, and thinking that it would be interesting as well as valuable to have these recorded as a historical supplement to Mr. Keyes's elaborate paper, I present the following narrative: In February, 1881, soon after the Atchison, Topeka & Santa Fé railroad made connection with the Southern Pacific at Denting, N. M., the Lake Valley properties were brought to the attention of New York and Philadelphia capitalists by John A. Miller, of Silver City, N. M. At that time silver was $1.10 all ounce and silver-mining was very attractive. Vast fortunes were being made in Leadville and other Colorado camps, and Tombstone was pouring out its millions. Lake Valley, like all' other mining-camps in their early history, had its drawbacks, but the railroad, then passing within 14 miles of it, mitigated many of these. The camp lay in the foot-hills of the Black range, in which the Apaches had their stronghold, and raided, when it suited their convenience, the surrounding country, killing the prospectors and pioneer settlers and stealing their cattle. This band of Indians was joined by the outlaws and desperadoes from the frontiers of Texas, Arizona, and Mexico, who collectively defied the United States soldiers, restrained, as the latter were, by the mollycoddles from the East. The brutality of the Indian raids through Arizona and New Mexico in those days would scarcely be believed now, but they stain in deep

Feb 1, 1909

By AIME AIME

THE graduating class whom I am particularly addressing are going into the world at least a month earlier than normal, because of the war. You have been free to choose your work. You have chosen to be mining engineers. The principal importance of your engineering education to date has been in teaching you how to think and how through books to have ready access to the accumulated experience of previous generations, as well as the current experience of the day. You should by now have acquired something of the engineering point of view, the open skeptical mind. the power to observe, experiment, and draw conclusions, form theories and test these by further experiment, and weigh the inherent probability of conclusions drawn by others. I am asking you today to consider certain facts and the conclusions I am drawing from those facts.

Jan 1, 1942

A group of prominent engineers and contractors of Chicago and vicinity have cooperated in forming a Joint Committee on Military Engineering. The founders are members of all of the leading engineering and contracting organizations of Chicago, including the local branches of the national engineering societies. The purposes of the Committee are to further military preparedness among engineers, contractors and their associates by the following means: (1) Courses of lectures; (2) assigned reading; (3) studies and practical instruction in military engineering;. (4) assisting engineers to qualify as officers in the National Reserve Corps of Civilian Engineers; (5) urging enlistment in and support for engineer troops of the National Guard and such other organizations as the Government may create; (6) furthering instruction in military engineering in training camps and the attendance in them of those qualified; (7) by such other means as from time to time may be deemed advisable. The Joint Committee has already prepared a program covering the vital points outlined. To date the program is practically complete for a period extending from April 20 to July 25. Something of interest will be taken up each week, including lectures by Lieutenant-Colonel W. B. Judson, Engineer Corps, U. S. Army; two lectures by Major P. S. Bond, Engineer Corps, U. S. Army; Lieutenant-Colonel Mason M. Patrick, Engineer Corps, U. S. Army, and several exhibition drills, terrain exercises and inspection trips under the direction and guidance of various officers of the Engineer Troops of the Illinois National Guard. Additions to the program will be made from time to time. '

Jan 5, 1916

A group of prominent engineers and contractors of Chicago and vicinity have cooperated in forming a Joint Committee on Military Engineering. The founders are members of all of the leading engineering and contracting organizations of Chicago, including the local branches of the national engineering societies. The purposes of the Committee are to further military preparedness among engineers, contractors and their associates by the following means: (1) Courses of lectures; (2) assigned reading; (3) studies and practical instruction in military engineering;. (4) assisting engineers to qualify as officers in the National Reserve Corps of Civilian Engineers; (5) urging enlistment in and support for engineer troops of the National Guard and such other organizations as the Government may create; (6) furthering instruction in military engineering in training camps and the attendance in them of those qualified; (7) by such other means as from time to time may be deemed advisable. The Joint Committee has already prepared a program covering the vital points outlined. To date the program is practically complete for a period extending from April 20 to July 25. Something of interest will be taken up each week, including lectures by Lieutenant-Colonel W. B. Judson, Engineer Corps, U. S. Army; two lectures by Major P. S. Bond, Engineer Corps, U. S. Army; Lieutenant-Colonel Mason M. Patrick, Engineer Corps, U. S. Army, and several exhibition drills, terrain exercises and inspection trips under the direction and guidance of various officers of the Engineer Troops of the Illinois National Guard. Additions to the program will be made from time to time.

Jan 5, 1916

By Alistair Frame

INTRODUCTION In April 1988 discussions were about to start with BP on the possibility of buying their- mineral interests, and it took a long time to arrange a deal. I will talk about RTZ without BP Minerals, look at the new RTZ with BP Minerals, discuss the outlook for metal prices, and review the problems in South Africa and develop the case against sanctions on that country. RTZAT THE END OF 1988 Late in 1987, after completing a worldwide review of our strategic thrust, we decided: 1. That the business focus would be to remain a major diversified natural resource group with interests in related industries. 2. To divest non-core and low growth businesses. 3. To develop a logical acquisition plan. 4. To emphasise organic growth and, most importantly, to enhance shareholders' wealth by capital increase and a progressive dividend policy. Subsequently, we concluded that we should sell our oil and gas business and dispose of several assets for which we saw little growth potential. The disposal programme raised some U.S.$ 1,600 million, representing a significant capital gain on our various investments. All transactions were carried out by our small Head Office staff in London, without the help of merchant banks and lawyers, and we were able to safeguard the employment of our staff in all these operations. The most interesting disposal was of our oil and gas interests. Before the 1987 strategic review, we had ambitions to develop our oil and gas interests and to become the leader in the second division of European oil companies. Our interests, which were purely in exploration and production of oil and gas, consisted of the 100% owned RTZ Oil and Gas company, and 29% of LASMO, a publicly quoted U.K. oil and gas company with extensive worldwide interests. LASMO, in turn, owned 25% of Enterprise Oil, one of the more successful of the North Sea oil exploration and production companies. Prior to the end of 1987, our intention was to acquire control of both LASMO and Enterprise. However, when we evaluated the net asset value of these two companies based on our oil price assumptions, which were pessimistic for the next five years or so, we concluded that they were both trading in the market at significant premiums. This, taken with the additional premium required for acquisition and the high cost of exploration, led us to conclude that, since funds could undoubtedly be used to better effect, we should sell our interests. Turning to the other major achievements in 1988, we commissioned, and built up to design levels in a very short period of time, the Morro do Ouro gold mine in Brazil. This mine reached its design output of 100,000 ounces of gold per year within three months of start-up, which was on time and under budget. We are now considering a possible expansion of this property. In South America, Utah International, Mitsubishi and RTZ arranged non-recourse finance, with post completion guarantees, for the giant Escondida Project in Northern Chile. Financing came from a group of banks in Japan, Germany and Finland -- the countries to which most of the concentrates will be sold -- and from the LEC. The average output of the mine for the

Jan 1, 1990

By AIME AIME

As already announced in the January Bulletin, this publication will be issued during the coming year monthly instead of bi-monthly as heretofore. Among other reasons for this change, it is desired to effect thereby the earlier transmission to members of important papers, lists of candidates for membership, and other items of timely information. Spokane Meeting and Excursions. Further details of the 97th meeting of the Institute have been sent to members in the Circular of May 8, 1909. The list of those intending to go on the excursion is filling up, and since preference in position of state-room or berth is given in the order of application, members and guests who expect to accompany the party and have not yet communicated with Mr.. Theodore Dwight, 29 West 39th St., New York, N. Y., are earnestly requested to do so without delay. For convenience of the members a summary of the additional information is here presented. A special train of Pullman cars will leave Chicago about September 15. This train will be side-tracked at all places visited, and the sleepers will be available for lodging and the dining-car for meals during the entire trip, except during the Yellowstone Park tour. The general cost of the trip per member will be $300, which includes transportation, berth, and meals for the entire trip from Chicago back to Chicago, almost 6,000 miles, and the tour through. Yellowstone Park, occupying in all about 30 days. Special, accommodations on the train will be furnished at the following rates

Jun 1, 1909

By A. O. HAYES

SYSTEMATIC methods of ore-finding are looked to the more as increasing production requires greater supplies of raw materials. Unrelenting search for new sources of supply is necessary, and all the skill of science must be displayed both in methods of discovering and recovering the minerals necessary to the demands of present-day life. To this end most national governments have some sort of a geo- logical survey and there is a growing understanding of the desirability for cooperation between federal and state or provincial organizations and also financial assistance, from state and private universities, mining companies, railroads and manufacturers. Such surveys are now being directed by well trained geologists selected from federal, state and university departments. Large-scale maps are being prepared and better geo- logical interpretation made, more thorough chemical and physical examinations are being made and original search is fostered, with the result that successful prospecting is better directed, new mining regions are more likely to be discovered, and the life of. old camps lengthened.

Jan 1, 1931

By Rush Greenslade

The oil and gas lease is the basic contract of the oil and gas industry; it is the foundation stone upon which the producing industry, particularly, is based. As the industry is precarious and highly speculative, the foundation contract should be of the utmost integrity and certainty. But right there an anomaly exists; the oil and gas lease is the most obscure, most uncertain, doubtful contract in the realm of law today. That is a condition that must be considered when taking oil and gas leases, and when buying, selling, and holding them. It may fairly be asked why should this industry rest upon so insecure a foundation. Why should not the oil industry rest upon the contract that is the basis of all industry, the warranty deed? There are many contributing reasons, but the principal one is business expediency. The Anglo-Saxon idea of ownership of land is that every land owner owns from the center of the earth to the sky—all that is above and all that is below—consequently the oil and gas are owned by the person who owns the surface. That idea is not exactly true with reference to oil and gas, for many states have adopted the doctrine that oil and gas are like wild animals; they are fugacious and migratory and belong to the man that traps them. But, except for that doctrine, we believe that oil and gas are owned by the owner of the surface, wherein we differ from the Latin-American countries where the mineral rights are owned by the government. The United States was settled largely by homesteading. The owners of land were, in the main, farmers, who did not have the means or the faith to drill for oil or gas. The operators or speculators did not want to buy the land on the mere possibility of finding oil; hence a compromise resulted by which the land owner gave the speculator or the operator what he called an oil and gas lease, or a right to go upon his land and drill for oil and gas. What is supposed to be the first oil lease placed on record reads as follows: Agreed this 4th day of July, a.d. 1853, with J. D. Angier of Cherrytree township in the county of Venango Pennsylvania that he shall repair up and keep in order the old oil springs on land in said Cherrytree township, or dig and make new springs, and the expense to be deducted out of the proceeds of the oil, and the balance, if any, to be

Jan 1, 1924