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By Orson Shepard

THE leaching method that was first widely used with the cyanide process consisted of percolation leaching of crushed ore in vats or leaching tanks. It was frequently necessary to separate the sand for cyanide treatment and discard the slimes, because only granular material allows the necessary amount of solution to percolate through it in a reasonable time. Later a slime process consisting of agitation followed by thick-ening and filtration was developed, and is extensively used to the pres-ent day. Even though the agitation-leaching slime process is considered satis-factory, the cost of plant and of operation are both greater than for a percolation-leaching plant of equal capacity. This situation has been recognized in the hydrometallurgical treatment of copper-bearing slimes; and a considerable amount of j work has been done at the Southwest Experiment Station of the U. S. Bureau of Mines in an effort to develop a percolation method of treating slimes. Experimental work on the copper-leaching problem was started by H. E. Keyes1, and later tests were made by J. D. Sullivan and A. P. Towne2. The Bureau of Mines work resulted in the development of a process by which slimes were moisture-agglomerated with sand and crushed ore, to form a permeable mass through which solution could be trickled without breaking clown the glomerules. The agglomeration trickle-leaching method was devel-oped on a small scale and finally tried out in a 12-ton vat. Successful results were obtained as long is the leach solution was added slowly, so that the agglomerated charge was never flooded. If the leach solu-tion flooded the charge, the glomerules broke down and, the charge became impervious. There are two important difficulties in the application of the agglom-eration trickle-leaching-method to the cyanide process for gold and silver ores:

Jan 1, 1937

By P. Hadzeriga

There are two places in the world where potash, trade name for potassium chloride, is economically recovered from naturally occurring brines by solar evaporation. One is at the Dead Sea and the other at Wendover, Utah. American Potash and Chemical at Trona, Calif. recovers potash from natural brines, but uses fuel to accomplish evaporation. Solar evaporation is always desirable, because of low costs, however artificial evaporation may be economical if a group of very valuable salts are recovered. This is the case for the American Potash operations at Trona. Solar evaporation is limited by low working temperatures, which in most areas of the world is between 18 and 45°C. In many cases the average working temperature is about 25°C. However, solar evaporation will have to accommodate itself to the highs and lows of each 24 hour period, and to the different average temperatures during the months of the year. Therefore, solar evaporation, although more economical than artificial evaporation, has a tem- perature limit which greatly reduces the chances of its application. The feasibility of solar evaporation as a means of recovery of values from a particular brine, may be evaluated by the use of phase diagrams showing the several components present. This paper is restricted to the five component system: C1-, SO4=, Na+, K+, Mg++, and H2O, which correspond to brines found at Wendover, Utah, the Great Salt Lake, and sea water bitterns. THE BONNEVILLE OPERATION AT WENDOVER, UTAH For more than 25 years Bonneville, Ltd., now a division of Standard Magnesium and Chemical Co. (recently acquired by Kaiser Aluminum and Chemical Corp.), has been recovering potassium chloride from the brines found in the desert area just east of Wendover, Utah. Solar evaporation of the brines is possible as a consequence of relatively low precipitations (year average: 4.8 in.), and of dry and hot summer months. The brine, collected by a series of approximately 67 mi. of ditches crossing the desert, is fed into solar evaporation ponds. Evaporation which takes place from around the middle of May to about the end of September, permits the crystallization of approximately 90% of the originally present NaCl on what is called the "General Pond Area". Further evaporation,

Jan 1, 1964

By E. O. Wagner, V. F. Parry, W. S. Landers

Following investigations by the Denver Bureau of Mines on drying fine coal in the entrained state, Texas Power & Light Co. employed the fluidized technique to upgrade Texas lignite for use in power plants. Because of the rapidly rising cost of natural gas in Texas the company agreed to cooperate with the Bureau of Mines in studying further the upgrading of lignite by low-temperature carbonization, since potential value of the tar would help off- set the cost of fuel. Considerable interest was aroused, therefore, when Aluminum Co. of America decided to use dried lignite in its 240,000-kw power plant at Rockdale, Texas, operated by Texas Power & Light. Carbonization of coal before burning in a power plant is not new. Plants in Germany have been operated for many years on carbonized brown coal and lignite briquets produced in large integrated plants. Large-scale experiments in carbonizing pulverized coal with hot flue gases were made 30 years ago at Milwaukee, and many inventors have proposed other processes. In the U. S., technical and economic problems have prevented successful operation of large plants on carbonized coal, but new techniques of handling solids in fluidized beds may overcome these difficulties, particularly if the higher volatile noncoking coals are used.

Jan 1, 1956

By Bernard Moore

AT present the demands of the United States for strontium are met by imports from Germany, England and Canada, which vary considerably in proportions of ore and finished salts, in tonnage and in value. Statistics for the period 1926-1932 are given in Table 1. Domestic deposits are TABLE 1.-Strontium Imported into the United States, 1926-1932a Ore Chemicals Year Short Tons Value Pounds Value 1926 2,200 $58,159 5,433,044 $115,436 1927 1,356 58,711 4,233,816 149,383 1928 759 31,157 3,380,464 136,561 1929 973 45,505 4,578,327 196,233 1930 220 10,459 2,153,788 104.807 1931 (260 lbs.) 123 1,742,714 83,564 1932 5 276 469,481 20,910 a Mineral Industry (1934) 42, 61. known in many states, but the, larger and purer ones are in the West, particularly in the desert region of southeastern California and western Arizona. These deposits are large enough to command interest, par-ticularly in consideration of future cheap power at the Boulder Dam. The deposits described in this paper were examined during an investi-gation of the mineral resources of the Boulder Dam region by the United States Geological Survey for the United States Bureau of Reclamation in the spring of 1934. Mr. D. F. Hewett, who had general charge of the investigation, Mr. W. T. Schaller and Mr. M. I. Goldman contributed many helpful suggestions. Mr. N. H. Harshman assisted efficiently during the field work.

Jan 1, 1935

Prof. G. W. MAYNARD, New York City (communication to the Secretary): Prof. Christy, in his admirable paper on "The Growth of American Mining Schools," has overlooked the work done by the Rensselaer Polytechnic Institute in its department of mining and metallurgy. This oversight is naturally due to the fact that the department was, for lack of money, discontinued in 1871. It was organized by the writer in 1867, starting with ten students, who had already completed the first two years of the civil engineering course in the Institute. The course covered two years, specifically devoted to mining, metallurgy and assaying, which, in connection with the two years' drill in the civil engineering department made a four years' course. During the four years of the existence of the department, thirty-five students took the course, of whom twentyfive graduated; and of this number eight have been members of the Institute of Mining Engineers, and the majority of them have occupied high positions in the profession. The equipment of the department was, at that time, second only to that of the Columbia School of Mines. As Prof. Christy has cited other institutions which are not distinctively mining schools, but in which the ruining course was subordinate to other courses, it seems to me that the work in this line carried out by the oldest engineering school in the country may very properly be referred to. In addition to the regular mining course, a special course in assaying was given; and many young men were here prepared for positions in the mines and metallurgical works of the west. PROF. George F. Swain, Boston, Mass.: I have listened with great interest to Prof. Christy's valuable paper, but there is one conclusion at which he arrives that appears to me entirely unjustifiable, and to which I desire to take exception. Prof. Christy finds that of the total wage-earners in the United States in 1880,10.41 per cent. were employed in " trade and transport;" 20.24 per cent. in " manufactures and mechanics," and 1.83

Jan 1, 1894

By J. N. Hobstetter, J. J. Becker

Slip lines in deformed copper single crystals exhibit very pronounced cross-slip and clustering if the stress axes are not too far from <100>. This orientation dependence seems to persist whether or not attempts are made to reduce the bending constraints of ordinary mechanical tests. THE purpose of this paper is to report some microscopic features of the plastic deformation of copper single crystals. The material used was OFHC copper obtained from the American Brass Co. Single crystals about 3 in. long and 5/16 in. in diameter were made by lowering graphite crucibles containing this copper out of the hot zone of a vertical tubular furnace at a rate of 1 1/4 in. per hr. The furnace atmosphere was nitrogen. The orientations of the crystals were determined by the back-reflection Laue technique.&apos; The X-ray spots usually indicated a slight lineage structure of not more than a degree or two. The crystallography of slip is discussed in Schmid and Boas.&apos; The terms classical slip, cross-slip, and conjugate slip are used here with the same meanings as in ref. 3. Compression Specimen 17 (Fig. 1) was selected because the resolved shearing stresses on eight slip systems dif- fered at most by a factor of 1.2. It was hoped that in this situation such effects as cross-slip might be made more prominent. Two intersecting planes parallel to the stress axis were ground on the crystal, using optical abrasive on a lead lap. The large plane was approximately perpendicular to the plane of the axis and the primary slip direction. Its exact orientation was determined by X-ray. The smaller made an angle of 49" with the larger, measured by reflecting a small light source. The specimen was etched with nitric acid until its diameter had been reduced 0.010 in., and then was given a metallographic polish and very

Jan 1, 1954

By R. C. Ku, A. J. McEvily, T. L. Johnson

AS reported in a recent paper,&apos; we attempted to measure the response to stress of as-quenched Fe-Ni-C martensites (Ms of -35°C) in both the micro-and macrostrain regions. To avoid effects associated with the diffusion of carbon, tensile specimens were quenched from room temperature at 78°K and tested after 15 min in situ. It was assumed that the transformation had terminated and that the retained austenite was essentially stable. In the tensile tests microplastic strains of the order of 10"* were measured at stresses below 20 ksi. It was concluded that the observed strains were due to the motion of dislocations in the martensite, the dislocations having been introduced during transformation. It was argued that transformation or plastic deformation of the retained austenite did not contribute to the non-elastic deformation measured in the microstrain region. In contradiction to the above argument, Magee and paxton2 have more recently shown that the strain due to isothermal transformation of retained austenite to martensite can contribute to plastic deformation at low stresses even at 78°K. Moreover we were unaware (nost)-a culpa) of a paper by Machlin and cohen3 in which it was clearly shown by resistance measurements that isothermal transformation at 78°K leads to the formation of an additional 1 pct or so of martensite after the initial athermal transformation, even in the absence of external stress. We have verified Machlin and Cohen&apos;s results in the following manner. A capacitance microstrain gage was placed on a tensile specimen before immersion in liquid nitrogen. After 15 min at 78°K detectable burst phenomena had ceased and it was then possible to obtain a continuous record of the additional extensional strain due to spontaneous isotherma1 transformation. The results for the Fe-Ni-C series studied are shown in Fig. 1, and are similar to those of Machlin and Cohen who investigated a low-

Jan 1, 1968

TO WE BOARD OF DIRECTORS OF THE AMERICAN INSTITUTE OF MINING AND METALLURGICAL ENGINEERS Gentlemen:-The following report covers briefly some of the more important activities of the Institute during the year 1923. In my report for the year 1922, I drew attention to the falling off in membership of the Institute due to the depressed condition of the mining industry in several lines and the inability of many of our members to find profitable employment in mining or its associated branches. A number who were unemployed during 1922 established connections during 1923, but a still greater number have been forced to resign or drop their membership during 1923. Fortunately, the number dropped is not so great as in the previous year. The Employment Service conducted by the four Founder Societies bears witness to the trend in business. For the young men just out of college, there are plenty of opportunities at small salaries, there are plenty of opportunities for them as laborers; but for the mature members, those of experience, there are few calls. During the last eighteen months, our Employment Service has been able to place only six of our members out of every hundred engineers for whom it has found work. Another loss which this Society has suffered, but which is not felt so keenly by our sister societies, is in its foreign members. The A. I. M. E. has always had a large foreign membership, but of recent years exchange has been so heavily against many European and South American countries that a large number of members residing abroad have been compelled to relinquish their membership. Almost invariably these members express keen regret because of the necessity that confronts them, and almost invariably the writers express hope that present conditions will not last long and that they will soon be able to ask for reinstatement. Having stated the darkest side of the picture first, it may now be drawn to your attention that in spite of these losses the number of persons applying for membership was decidedly encouraging. From the quality point of view, the membership has not gone backward. The Membership Committee has declined to recommend many

Jan 1, 1925

By Dr. O’Neil Thomas J., Donald W. Gentry

"October. This is one of the peculiarly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February." -Mark Twain Although the preceding chapters describe the type of preliminary evaluation frequently performed in the mining industry, it has been assumed that input data are known with certainty-clearly an enormous simplification. In reality, estimates of ore grade, mining cost, metal price, etc., are subject to varying degrees of uncertainty due to the inability to predict the future with much precision. Management would probably not, for example, be equally attracted to two projects each offering a 20% DCFROI-one for a new gold venture in Nevada and the other for an undersea manganese nodule operation in the Pacific. The high risk with the latter investment tells the obvious; there is more to investment decision-making than a deterministic analysis using "best estimates" of input parameters. The science of decision theory normally distinguishes between decisions under uncertainty, where probabilities of various outcomes are unknown; and decisions under risk, where such probabilities can be estimated. The first case is rarely en- countered in practical capital investment analysis in mining, so the remainder of this chapter focuses on that class of problems where rational probability distributions for the future states of input variables can be estimated. RISK IN MINING Risk in the context of this chapter is the unforeseen deviation of individual cash flows from expected values for a capital project. For a mining venture, the source of this uncertainty could be any number of factors relating to such items as ore grade, ore reserve tonnage, operating costs, product prices, etc. With conventional *Adapted from O&apos;Neil, T.J., 1979, "Procedures for the Preliminary Financial Evaluation of Metal Mining Ventures," Computer Methods for the 80s, A. Weiss, ed., AIME, New York, pp. 556-573.

Jan 1, 1984

By E. F. Kingsbury

ONE of the well-known and important uses of the noble or precious metals has been for electrical contacts. In fact, the elements of this group, comprising gold, silver and the six platinum metals, have been called "noble" because of their ability to resist- heat and corrosion, properties which were early found to be of importance in good contacts. Of these, platinum and its iridium alloys, palladium, and silver, have been extensively used. In recent years the electrical industry has been responsible for about one-eighth of the total consumption of the platinum metals in the United States. Information is not available as to what part of this one-eighth has been used for contacts but it is certainly an important one. SUBSTITUTES FOR PLATINUM During the past 20 years a considerable number of contact alloys have been proposed in the patent literature largely with the aim of more or less replacing platinum by gold or silver, and some of these alloys are finding increasingly widespread application as the reliability of their performance becomes established.. From even the partial data at hand it appears that this substitution by the less precious metals has replaced at least one-half of the amount of platinum that the entire electrical industry would otherwise be consuming at the present time.

Jan 1, 1928

By Robert C. Stephenson

In 1954, a year when general industrial production declined, it is significant that industrial mineral products continued in high demand. Phenomenal growth of the cement industry, increase in filler-fibre markets such as for asbestos and diatomite, expansion of the gypsum industry, and the increasing production of agricultural raw materials all illustrate the vitality of industrial minerals fields. Pioneer development of new industrial raw materials-wollastonite as a current example-requires keen foresight, hard work, and tremendous intestinal fortitude. The present-day requirements of industry for rigid quality control and uniformity of raw materials have resulted in highly specialized

Jan 3, 1955

By Rodney P. Smith

The rate of motion of the boundary between a single-phase a-iron region and a two phase a-iron plus ?-iron, or a-iron plus cementite region has been measured on decarburization at several temperatures between 500" and 865°C. These data, together with data for the carbon content of a-iron at the boundary, yield the diffusivity of carbon in a-iron. The activation energy for carbon diffusion is 19.8 kcal per mole for the temperature range —50° to 150°C and increases to an average value of 23.0 kcaL per mole for the temperature range 727" to 865°C. AS part of an investigation of the diffusivity of carbon in iron using a steady-state method,&apos; the diffusivity of carbon in a-iron was determined at the temperatures 802" and 851°C. The diffusion constant thus obtained was larger, by nearly a factor of two, than that predicted from the combined results of stanley2 and of Wert.3 It seemed desirable, therefore, to continue the investigation. Since the temperature range in which the steady-state method can be conveniently used is limited, we have chosen a decarburization method, based on the laws of diffusion in metal accompanied by a phase change.4,5 If the initial carbon content of the Fe-C alloy is such that two phases coexist at the decar-burizing temperature* and decarburization is car- ried out such that the surface is maintained at substantially zero wt pct. C, the carbon distribution after a time, t, will be as shown in Fig. 1. The boundary between the single-phase and two-phase regions moves from y = 0 to y = x in the time, t, where x is proportional4 to tl". If the initial carbon (content of the sample is Ci, and CB is

Jan 1, 1962

By John S. Bell, J. M. Shepherd

pressure difference of 280 psi measured initially on opposite sides of the major fault in the Hawkins Field led to pressure determinations in the Woodbine sand throughout the East Texas basin. Considering the large area, there is unusually good correlation between pressure losses and points of major withdrawals, these losses indicating that the basin pressure has been materially reduced by withdrawals, primarily from the East Texas Field and secondarily from the old fault-line fields of Limestone and Navarro counties, with the pressure loss varying inversely with the log of the distance from these two main areas of basin withdrawals to the measurement points. Apparently faults located throughout the basin serve as local blocks to continuous pressure gradients. INTRODUCTION The pressure anomalies found in the Hawkins Field, Wood County, Texas,&apos; shortly after discovery have led to an area-wide investigation of the pressure distribution within the Woodbine sand of the East Texas basin. These pressures were obtained by drill-stem tests made for that sole purpose while drilling wildcat wells to deeper horizons. The Woodbine sand of Gulf Cretaceous Age is or has been productive of oil and gas in 42 different fields, with the 28 oil fields currently active having produced 118,000,000 bbl of oil during 1949. With one exception, producing energy for all Woodbine reservoirs has been from water drive provided predominantly by expansion of the tremendous volume of water contained in the Woodbine sand. This producing mechanism was recognized at an early date and was described mathematically by

Jan 1, 1951

By Robert Sisselman

If we are lucky," says Hollis M. Dole, Assistant Secretary of the Interior, "coal, uranium and hydropower will provide us with maybe a third of the energy we require in 1985. The other two- thirds will have to be made available in liquid and gaseous form." Luck, however, may have run out, for if the facts and figures relating to supply and demand of natural gas over the next 20 years prove accurate, the United States may fall short in its attempts to bring the energy crisis under control. By the year 1990 the world will need to consume a minimum 150 quadrillion Btu of energy with gas requirements running as high as 42-43 trillion cu ft. By 1990, the U.S. alone will require 45-46 trillion cu ft. To meet anticipated demand, this country will have to overcome a deficiency of about 20 trillion cu ft since, by all pragmatic estimates, it will produce only 15-20 trillion cu ft of gas. The importation of natural gas into the U.S. will help but will not solve the problem. Adequate gas supplies will have to be supplied domestically. The Arctic, with its predicted huge reserves of gas, combined with imports of liquid natural gas (LNG) may provide as much as 15% of the 45-46 trillion figure, however, such reserves will not come into play as quickly as originally thought. The Alaskan gas fields, for instance, will provide a substantial supplement to domestic gas needs, but only after 1976.

Jan 10, 1972

By Richard H. Zinszer

Application Of electric logs has been used in correlation of subsurface structure to determine the size and shape of the oil reservoir. Such a knowledge is hardly complete until saturation and productivity are determined for the various horizons. It is difficult to use electric logs successfully for this purpose because of the many factors that influence the curves. In this work an effort was made to establish an empirical correlation between formation resistivity for a series of electric-log curves and water saturation and oil productivity of sand. Electric logs were obtained by recording with 10 different electrode spacings through the same interval of a well. In the analysis of these curves all factors except two, a dependent and independent variable, were held constant. The interval studied had been cored and a large number of samples were analyzed in the core laboratory in order to compare the values of permeability and saturation with the measured values of formation resistivity. Results of this analysis indicate: (I) the depth to which mud filtrate enters a sand body, (2) a correlation between permeability and sand resistivity for shallow penetration depths, and (3) that the water saturation for an oil sand can be determined from the measured sand resistivity after making suitable corrections for sand thickness. The procedure in the last method depends on a correction for thickness factor and a theoretical curve. The accuracy of the theoretical curve is now being tested in the laboratory Introduction In an effort to place the analysis of electric logs on a quantitative basis, there is need for a better understanding of the many factors that influence an electric-log curve. These factors may be large differences in sand thickness, permeability of the sand, salinity of the interstitial water, mud resistivity, formation temperature, and other sources. A number of examples were presented by Archie,&apos; which treat the effect of sand thickness on measured resistivity. He compared the true resistivity of a sand with the observed resistivity for sands 8 it., 16 ft., and 24 ft. thick, and found the observed resistivity of the 8-ft. sand to be approximately

Jan 1, 1946

Long range expansion plans begun in 1966 by The International Nickel Co. of Canada, producer of over 50% of the free world supply of the white metal, are so mammoth as to give rise to the speculation that something might have to burst at the seams. From an annual level of capital expenditure of $35 to $70 million, the company jumped in 1967 to $145 million in new capital investment and will come close to $200 million in 1968. Inco expects to spend $700 million in the next five years, beginning in 1968, for new mines and surface facilities in Canada. The program involves the opening of nine new mines within the next 3 1/2 years, expansion of producing mines, and construction of new plants and modernization and expansion of established ones to process the increased ore production. Beyond this, the company is committed deeply in developing new sources of nickel abroad. Any one of these new projects, if proven economic, would necessitate expenditures of about $100 million or more. For Inco, the economic strain was relieved without a rupture this spring when Henry S. Wingate, company chairman, reported&apos; at the stockholders annual meeting that $150 million had been raised by the sale of bonds. This marked the first time in 32 years that the company had gone into debt.

Jan 10, 1968

By Mark A. Ammon

The two most widely used methods of measuring hardness are the Brinell and the scleroscope. In the Brinell method a hardened steel ball is pressed into the steel under a definite load and the area of the resulting depression is measured. The load in kg. per sq. mm. of the area of the depression is taken as a measure of the hardness. Within certain limits the hardness number so determined is independent of the load or the size of the ball. In the scleroscope method a small weight carrying a diamond point is dropped through a glass tube upon the steel and the amount of rebound is taken as proportional to the hard-&apos; ness. In both methods the scale of hardness is an arbitrary one; however, they agree in a comparative may, that is, a steel showing 50 per cent. increase in hardness by the Brinell test mill show approximately 50 per cent. increase in hardness by the scleroscope test. Yet upon consideration of the two methods it appears that, upon a steel which has been carbonized, this should not be the case ; for the scleroscope method gives almost exclusively the surface-hardness, and the condition of the material below the surface has but a slight bearing upon the hardness number. The results given by the Brinell method should, however, be the exact opposite; for the depth of penetration &apos;of a ball pressed into the steel would be dependent to a large extent upon the condition of the material below the surface. This is particularly obvious when it is considered that the size of the ball ordinarily used in the Brinell method is 1 cm. (about 8 in.) in diameter under a load of 3,000 kg., while the diamond point of the scleroscope is in the neighborhood of 0.01 in. across, fitted in a hammer of about 0.5 oz. weight and dropping from a height of 10 inches.

Jan 1, 1913

By J. Price Wetherill

The coal-seams that are worked vary from 3 1/2 to 100 feet in thickness, and occur at all angles of inclination, but are never flat for any great extent. They contain coal, slate, and an unsolidified coal, called dirt by the miners, in various proportions, a uniform seam of coal alone being rare. The upper walls are composed of conglomerate, sandstone, or slate; the first two hard and solid in texture, and withstanding the action of the atmosphere and moisture sufficiently well to offer but little trouble to the mining operations; while the latter crumbles rapidly, owing, in part, to the decomposition of iron pyrites which it contains in large quantities, and in part to its own friable character, and requires constant care to avoid accidents to the men working below it, and to prevent its mixing with the coal mined. The floors are composed of slate. As in all mining operations, the general system pursued is to reach with a permanent outlet such a point in the seam as will

By A. J. Lynch, E. V. Manlapig, J. H. Fewings, D. J. McKee

Progress in the development of an automatic control system for the chalcopyrite flotation circuit at Mount Isa Mines Limited is discussed. Preliminary studies have shown that the operating grade/ recovery curve for a sulphide flotation circuit is established by rougher-scavenger behaviour and the operating point on that curve by cleaner-retreatment behaviour. The control strategy of the rougher-scavenger banks involved regulation of xanthate to maintain recovery and control of air to seek the optimum grade/recovery curve. Control of the cleaner circuit to maintain the correct operating point of the plant relative to the ore entering it will be by air. Pulp levels will be used as an additional controllable variable in due course. Sensing instruments include a “Courier” on-stream analyser and several mass flow metering systems each of which contains a magnetic flow meter and a gama gauge. Measurements of concentrate grades and recoveries are made as early as possible in the rougher bank so that a change in the ore entering the plant can be detected as soon as possible. Over a period of six months from initial control systems application, computer control of xanthate resulted in an overall reduction in consumption of 10%. Experimental work has indicated that improved metallurgical performance will result from the introduction of additional air and level control loops.

Jan 1, 1976

By W. Irwin Moyer

Two methods for the rapid valuation of oil properties are in common use. The one best known and most widely used is the "per barrel" value, based on the present daily production of the well, without regard to its past performance or the history of the sand or pool from which it produces. The second method is the "time to pay out," or the lengt of time required for a well to place itself upon the credit side of the ledger, from which time the returns from its production (less the operating expenses) will be clear profit. The time basis for valuation is also commonly used in the appraisal of an undeveloped lease. In most oil fields, it is not thought good business to invest in production that will not pay out in at least 4 to 5 years. Nearly all buyers (except in certain regions of very persistent production like the deep-sand territory of the Appalachian field) expect wells to pay out in considerably less time than this. Like the barrel-per-day price, the time necessary for a well to pay out has been determined for each field, so that one frequently hears a field or district referred to as having a certain time to pay out. This is considered the norm for that field or district and the buyer and seller base their value, to greater or less extent, on their belief in the accuracy of this time. The writer long ago became convinced of the inaccuracy of the barrel-per-day method, except when greatly modified for local conditions, such as the age of the wells, their economic limit, operating conditions in the field, the future price of oil, and the persistence of the sand as a producer. When so modified, this method becomes more of an analytic or predicted probable-yield valuation. While the appraiser may not go through each step in a valuation based on future returnable revenue, his knowledge of the field and the local conditions surrounding his leases make it possible for him to estimate a fair sales value that, in many cases, will be a close approximation to the truth. This is quite different from she commonly understood barrel-per-day value, in that the conditions turrounding the sale of one lease or property at a fair market value may

Jan 1, 1923