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LIST OF THE MEETINGS OF THE INSTITUTE AND THEIR LOCALITIES FROM ITS ORGANIZATION Transactions Number Place Date Vol Page 1 Wilkes-Barre, Pa May, ?71 1 3 2 Bethlehem, Pa August, ?71 1 10 3 Troy, N Y November, ?71 1 13 4 Philadelphia, Pa February, ?72 1 17 5 New York, N Y May, ?72 1 20 6 Pittsburg, Pa October, ?72 1 25 7 Boston, Mass February, ?73 1 28 8 Philadelphia, Pa May, ?73 2 3 9 Easton, Pa October, ?73 2 7 10 New York, N Y February, ?74 211 11 St Louis, Mo May, ?74 3 3 12 Hazleton, Pa October, ?74 3 8 13 New Haven, Conn February, ?75 3 15 14 Dover, N J May, ?75 4 3 15 Cleveland, 0 October, ?75 4 9 16 Washington, D C February, ?76 4 18 17 Philadelphia, Pat June, ?76, 5 3 18 Philadelphia, Pa October, ?76 5 9 19 New York, N Y February, ?77 5 27 20 Wilkes-Barre, Pa May, ?77 6 3 21 Amenia, N Y October, ?77 6 10 22 Philadelphia, Pa. May, ?78 6 18 23 Chattanooga, Tenn May ?78 7 3 24 Lake George, N.Y. Oct. ?78 7 25 Baltimore, Md. Feb. ?79 7 26 Pittsburgh Pa, May ?79 8 27 Montreal, Canada Sept, ?79 8 28 New York, N.Y. Feb, ?80 9 29 Lake Superior, Mich Aug, ?80

Jan 1, 1923

By Charles E. Heinrichs

IN the last decade one of our oldest and largest non-metallic metallic mineral industries has been the subject of persistent technical research, the results of which are another example of the benefits following the systematic application of scientific principles. The consequent improvement in the technique of phosphate recovery represents the greatest material advance in the industry since the discovery of phosphate in Florida in 1881. Moreover, these successes have stimulated interest and development in numerous other nonmetallic industries. Strange as it may seem, and despite the fact that the phosphate deposits of Giles County, Tennessee, together with those of Polk and Hillsborough Counties, Florida, have yielded more than 50,000,000 long tons in the last twenty years, the mineralogy of phosphates has been given scarcely any space in our technical literature. For many years it was the general consensus that these so-called phosphate rocks represented a physical mixture composed principally of tri-calcium phosphate, together with smaller quantities of calcium carbonate, calcium fluoride, iron phosphate, aluminum phosphate and other less important constituents. More recent investigations, however, led to the conclusion that these phosphates really represent a complex mineral in which calcium, iron, aluminum, phosphorus pentoxide, carbon dioxide, and fluorine all form a definite part of the molecule. Colony, after a careful study, utilizing chemical, microscopic, and X-ray diffraction methods, reported that American phosphates consist principally of calcium-carbono-phosphate of the staffalite type.

Jan 1, 1933

Jan 1, 1966

By Robert B. Kistler, Ward C. Smith

The borate industry is one of the few sectors of the mining and mineral-processing industry which the United States still dominates. Since about 1927, the United States has supplied over half of the world's total boron and borate raw materials, and many of the chemical derivatives as well. Chiefly responsible for this record are companies producing sodium borates from two large deposits in southern California, at Boron (Kramer) and Searles Lake. The sodium borates, or products derived from borax and borax-containing brines, are the preferred borates for industry because they are soluble in water and combine readily with most other chemicals. Calcium borates (or sodium-free compounds) are required for certain end uses, but in general, nonsodium borates are used only where borax is not avail- able. During the past hundred years, the use of boron compounds throughout the world has risen from a few tons per year to the equivalent of about a million tons of B2O3. Leadership in supplying borates has shifted from country to country and from region to region during this period, generally as the result of the development of newly discovered deposits that were better in quality, more accessible, or more economically exploitable than previous sources (Table 1). Primary Products and End Uses The principal borate products offered by primary producers in the United States are listed in Table 2. In general, these products are utilized worldwide by almost all consumers, regardless of the original source of the primary borates. In the United States, the primary borates all originate in southern California. Colemanite is produced as crude or processed crude ore from the Death Valley area and is utilized by the fiber glass and ceramic industries without further treatment. Production from Searles Lake, Calif., is from brines that are processed in chemical plants where borax and other compounds are recovered and the principal borate products are produced. At Boron, Calif., the world's leading producer is mining a deposit of mineral borax and operating a chemical refinery. The mineral borax is mined together with included clay, and refined borax or "lo-mol" is one of the refinery products. The mineral and the chemical compound are identical, Na2B4O7- lOH2O. In addition to ship- ping all major refined borate products from Boron, the company ships semiprocessed ore concentrates to treatment plants elsewhere.

Jan 1, 1975

By B. M. Larsen

Jan 1, 1948

By B. M. Larsen

Jan 1, 1948

By J. Jones-Parra, R. S. Reytor

The porosities of fractured limestone reservoirs can be divided into two broad types in accordance with their effects on fluid distribution and fluid flow. In the coarse porosity, gravity segregation lakes place freely and the resistance to fluid flow is very small. In the fine porosity there is no segregation and a high resistance to flow, and it has relative permeability characteristics similar to tight sandstones. By analyzing the affect of the two porosities it is concluded that in some cases to recover the maximum amount of oil it is necessary to remove large quantities of gas from the reservoir by producing at high gas-oil ratios. In this manner the fine porosity is drained of its oil and the gas-oil contact drops slowly permitting higher production rates from the oil leg. Since this conclusion is contrary to widely accepted principles of conservation, a mathematical model (Fig. I) was constructed to duplicate the conditions desired. The behavior of the model indicates that under certain conditions it is possible to recover more oil by producing at high gas-oil ratios than by production at low gas-oil ratios, and that the rate of production is affected more by gas shut-offs than by the decrease in pressure (Figs. 2, 3, 4 and 5). INTRODUCTION It has been noted that certain limestone reservoirs behave in such a way as to indicate that there are two distinct types of porous spaces available for fluid storage and fluid flow. Regardless of the nature of these porous spaces the distinguishing characteristic is that in one type of porous space there is definite gravity segregation between the oil and the gas; while in the other, the gas evolved tends to remain distributed equally throughout the reservoir. For the sake of simplicity the porosity in which gravity segregation takes place at a fast enough rate to affect the behavior will be called "coarse po- rosity", while that in which this is not so will be termed "fine porosity". The behavior of a reservoir of this type would be different than that of a sandstone reservoir, especially if most of the oil is in the fine porosity. It has been observed that fluid flow to the wells takes place mostly through the coarse porosity. The large fractures which

By J. S., Douglas

IN 1880, the late James Douglas, LL.D., was superintendent of the Chemical Copper Co., operating the Hunt & Douglas process for the treatment of the siliceous copper ores of the Jones mine at Phoenixville, Pa. In conjunction with this a refining furnace was operated. After correspondence with Ben Williams, of Bisbee Ariz., who was commencing the mining and smelting of the Copper Queen ore. Dr. Douglas decided-to make his first journey to Arizona. While making plans for the trip lie visited a friend in Philadelphia, a .Mr. Logan, a prominent lawyer. He, through Professor Treadwell, brother of the discoverer of the great Treadwell gold mine of Douglas Island, Alaska, had an option with his min¬ing partner, Mr. Lenig, on the Eureka and Wade Hampton claims near the headwaters of the Verde River in Yavapai County, Arizona. These two claims, later the source of practically all of the wealth of the Jerome district, were then owned by C. P. Head and Co. Prescott merchants. Hugo Richards, banker, and formerly sutler at Camp Apache; Rod and John McKinnon prospectors and Nova Scotians; and perhaps one or two 'other owners of minor interests. Mr. Logan, hearing of Dr. Douglas intended trip to Bisbee, asked him to go first to see the two mining prospects, and this, Douglas, in need of the $500 fee, agreed to do as the time on the option on the claims was running short.

Jan 1, 1935

By Peter F. Weiss, H. Riedler, I. M. Moschitz, A. Olsacher, G. B. Fettweis

CONTENTS : 1. NATURAL FACTORS Geology Petrography and Rock Mechanics Mining System Orientation Rock Bolting System Movability of the Ore Grain Size Distribution Permeability Contamination Value of the Ore Hydrology 2. TECHNICAL FACTORS Height Length and Width Drawing Areas Time Factor Water Predrainage Surf ace Draining Underground Draining Advancing Slitting Sequence of Development Initiation of the Caving Process Drawing Rate 3. SPECIFIC MINING RULES Advancing Development Drawing Rate Interruption of Drawing (Water Distribution, Concentration of Mud, Dilution) Blasting 4. CONTROLS Safety Controls for Operation Computerised Drawing Control Structure of the Computer Program Hard Ware Print Outs 5. SUMMARY 6. ACKNOWLEDGEMENTS 7. REFERENCES Under the heading "Development System for Block Caving under Severe Conditions" a report was presented to this congress regarding a magnesite mine using block caving for several years. On account of the experience gathered in this mine and the results of far reaching exchange of experience, as well as under due consideration of the international literature it is tried to systematically list and briefly discuss the following factors that have to be considered for development and draw control of block caving. 1. NATURAL FACTORS It is self evident that this implies all those circumstances given by nature and which cannot be altered by man. Any mining activity is subjected to those and the success is depending on how far technology can be adjusted to those conditions. Geology Deposits of considerable thickness with rather steeply inclined flat-faced contacts are optimal for block caving. While vertically there is practically no limitation- for the deposit, theoretically, the smallest horizontal basis apt for operating block caving is the minimum area necessary to get the rock to completely cave in by undercutting and drawing. Practically, only consider- ably bigger main dimensions are found, mainly because of technical factors (machinery and equipment) and economic factors (cost ratio of exploration vs. development, danger of contamination).

Jan 1, 1981

By J. R. Long, A. H. Roberson, T. R. Graham, R. S. Dean

EXPERIMENTAL work on the properties of high-purity alloys of the copper-manganese-zinc system has necessarily required extensive metallographic work to determine the equilibrium conditions in this system. Previous work on these alloys is fragmentary and, unfortunately, based on alloys made with impure grades of manganese, thus introducing significant amounts of iron, silicon, aluminum and carbon. Since these elements are known to affect equilibrium conditions, it became desirable to re-examine these alloys made from the pure metals. The alpha solid solution field was of particular interest and, therefore, was chosen for the initial work, which was outlined to determine the composition limits of this field. PREVIOUS WORK Heusler1 conducted an extensive survey of the liquid-solid regions of this system and also made an estimate of the solid-phase boundaries at 340°C. The pertinent part of his diagram is given in Fig. I, but it is of limited usefulness, since it applied to a single temperature only and is based on impure alloys under admittedly nonequilibrium conditions. Bauer and Hansen,2 likewise working with impure alloys, have determined the phase boundaries for alphabeta brasses containing small amounts of manganese and indicate an increase in the extent of the alpha field with increasing manganese. This is not in accordance with Heusler or with data obtained on pure alloys.3 They also described a third constituent precipitating in the alpha plus beta field below 350° to 400°C. but did not identify this constituent. Guillet4 and Heike and Ledibur5 have also noted this precipitate Each of these investigators recognized that impurities present in the manganese could and did have an effect on the structure and properties of their alloys. Corson6 in particular pointed out the hardening effects of silicon, aluminum, and carbon in copper-manganese alloys and Heusler reported that his alloys containing more than 25 per cent manganese were extremely brittle. In all probability this brittleness was due to the impurities present. This early work, therefore, should be taken as a general guide for preliminary studies only, and high-purity alloys may be expected to produce different results. The work of the Bureau of Mines laboratories with electrolytic manganese has been briefly summarized by Dean7 but includes only a short section on this system. Later work3 outlined a limited portion of the alpha field in the neighborhood of 65 per cent copper, 10 per cent manganese, and 25 per cent zinc. The present work was under-

Jan 1, 1945

By Herty, C. H.

Three distinct processes take place during the conversion of iron ore to steel. First: the raw ore is reduced to metallic iron in the blast furnace and during this reduction certain constituents are dissolved in the iron, either through the solution of a solid into a liquid phase, as in the case of carbon, or by reduction of an oxide existing in the slag to the metallic element of that oxide, with subsequent solution of the metallic element in the iron. Thus by the process of solution and reduction, a pig iron results which contains about 4 per cent carbon, 1 per cent silicon, 1 to 2 per cent manganese, 0.1 to 0.4 per cent phosphorus, and 0.03 to 0.10 per cent sulfur. To obtain a sufficient yield of iron from the ore it is necessary that the reducing process be carried as far as possible, with the result that the impurities mentioned accompany the reduced iron. Second: to convert this iron into steel it is necessary to oxidize a part of the iron in eliminating the impurities to the extent desired for the particular product being made. In eliminating these impurities by oxidation a certain amount of iron oxide (FeO) dissolves in the steel. This dissolved FeO reacts with the metalloids, except sulfur, and to eliminate them to the desired extent it is necessary to leave a considerable amount of FeO in the metal. The reaction of iron oxide with silicon, manganese, and phosphorus results in the formation of the oxides of these elements. The oxides enter the slag and the extent of elimination of the elements depends on certain equilibria between the slag and the metal. The reaction of FeO with carbon results in the formation of the gases CO and CO, which, after saturating the metal, pass into the furnace gases. Third: after the iron has been purified to the desired extent as far as the elements listed are concerned, it is necessary to deoxidize the bath to remove the FeO, which is the vital factor in gas formation as the steel solidifies.

Jan 1, 1957

A shrinkage stope is an overhand stope in which the broken ore accumulates until the stope is completed to, or near, the level above. As broken ore generally occupies at least 60 per cent. more space than ore in place, about a third of this must be drawn out as the stope advances to leave a working space under the back. The ore remaining supports the miners and gives temporary support to walls, and is all withdrawn when the stope is finished. The shrinkage-stope method is applicable to steep-dipping deposits of strong ore with strong walls. It may be applied to narrow or wide veins, and is simple and cheap. Five examples, which include important and varied types of deposits, are given: namely, Kennecott, Homestake, Jarbidge district, Mogollon district, and Cripple Creek district.

Jan 1, 1925

By C. A. Stiles, J. W. Nyhus

Erie Mining Co. is a 10.3-million-tpy pellet producer on the east end of the Mesabi Range 60 miles north of Duluth. Its complex includes facilities for mining, crushing, grinding and beneficiation in addition to a pellet plant and power plant. A 74-mile railroad links the mine and plant to Taconite Harbor on the shore of Lake Superior. The concentrate recovery ratio at Erie is about 1: 3, and this, along with stripping activity, makes it necessary for the company to mine nearly a million tons of material a week. At the outset, all crude ore mined at Erie was hauled entirely by rail, but with expansion into additional mining areas, the company made a gradual transition towards truck-to-rail haulage. Today, in Erie's 11th year of operation, over 50% of all crude taconite mined is transported by truck to loading pockets where it is transferred to rail cars. Future years will see more taconite moved in this manner. Thus, the company has an increasing interest in tire performance.

Jan 6, 1969

By C. Dinis da Gama

Because of the growing importance of back analysis for the interpretation of rock slope failures, particularly in open pit mines, it is suggested a methodologic sequence of activities for dealing with those problems. The principal mathematical tools for the interpretation of the most common mechanisms of slope failures are reviewed, including methods of stress and strain analysis, which seem to be more powerful for parametrization studies, and for developing more realistic explanations of slope behaviour, such as the measurement of displacements. An application of those methods is described, using slope failures detected in a Brazilian uranium mine (Cercado), thus providing reliable shearing strength parameters for the rock mass discontinuites, which were used in the final pit design. The concept of using backanalysis results to supply input data for pit design was implemented by means of the excavation of an experimental trench within mine limits, where specific instruments were installed, and several slope failures were monitored and backanalysed, in order to yield information about sliding mechanisms in the future open pit.

Jan 1, 1983

By K. E. Manchester, C. B. Sibley

The feasibility of doping silicon to produce device structres by directly implanting impurity atoms has been demonstrated. Both phosphors and boron ions have been successfully implanted in silicon to produce electrical junctions. Junctions as deep as 1.2 p have been produced by phosphorus ions having energies the order of 80 kev. An electromagnetic separator has been used to controllably produce uniform, large-area implantations for evaluation experimentation. Correlations between junclion depths and ion energies huve been obtained. Orientation effects have been observed and it has been found that the (110) direction is the easy direction for implanting. Monitoring of thermal treatments oj implanted substrates by sheet-resistance measurement indicates a very mild thermal anneal removes most of the damage done during the implantation. These indications are further substantiated by reverse-current measurements of j,inctions Produced by implantation. Electrical characteristics of implanted junctions are compared with those of diffused junctions. We have been interi n the interaction of energetic ions in the III-V groups, in particular boron and phosphorus, with single-crystal silicon to produce type conversion for possible device use. A number of investigators, a few of whom are avies, Kornelson,3 and so forth, have reported on penetration of energetic ions into both amorphous and crystalline solids. While most work has been done with ions of the rare gas and alkali metal groups, some work has been reported by ing, erber,' and others6 in which ions of the 111-V groups have been implanted in single-crystal silicon. A large amount of this work has been done with ion energies in the 100-kev to 1.5-Mev range. An excellent review article has been written by caldin. We have concentrated on ion energies which are in the 10 to 80 kev range, with which over 1500 implanted junctions such as the one shown in Fig. 1 have been produced in silicon substrates with both phosphorus and boron ions. Fig. 1 is a 3-deg angle lap in which the n type area produced by 66 kev P is delineated and the junction is 9500A below the surface. EXPERIMENTAL Implantations reported in this paper were made with the ion source adjusted to produce ion currents in the range of 1 to 2 pa with accelerating voltages varied from 10 to 40 kv. When using doubly charged ions this produced 10 to 80 kev ions. This allowed substrate temperatures to remain below 100°C. Sam- ple movement resulted in beam impingement angle variation of 7 deg from the normal to the substrate surface. Substrate resistivities have been varied through the range of 0.001 to 500 ohm-cm and specimens oriented in three directions, (110), (Ill), and (loo), within 12 deg. RESULTS For the purpose of this paper, discussion of results will be limited to phosphorus implantations with mention of results for boron-implanted silicon. Similar results have been obtained for boron and will be reported at a later date. In Figs. 2, 3, and 4 depth penetration is shown

Jan 1, 1967

By J. M. Uys, T. B. King

WalSH, Chipman, King, and rant' have measured the water content (as hydrogen) of actual steel-making slags. An average water content of 290 ppm was found for basic open-hearth tapping slags and 114 ppm for acid open-hearth slags. Upon equilibration of these slags at 1550°C with a 25 pct H20-75 pct Nz atmosphere, the water content increased to about 410 and 300 ppm for the basic and acid slags, respectively. Walsh et al. concluded that an acid slag was thus relatively far removed from equilibrium, and that basic slags showed a closer approach to equilibrium, with the water vapor in the furnace atmosphere. Herasymenko2 contended that these conclusions were unjustified, as the oxygen pressure used in the equilibration experiments, ;bout 5 x X atm, was quite different from that found in the furnace. Consequently, during the experiments the slag composition would have changed due to oxidation of ferrous iron. As an extension of Walsh's work and to attempt to clarify this matter, the solubility of water in a basic open-hearth slag was measured as a function of oxygen pressure. Similar measurements were also made on synthetic silicates in the "Fe0"-Fe203-SiO, system. The experimental technique has been described previously by Walsh et a1.l and Uys and King.3 Samples of the basic open-hearth finishing slag, contained in 10-cc platinum crucibles, were equilibrated at 1550°C with atmospheres of different oxygen pressure but constant water-vapor pressure, Ph~o = 0.192 atm. Calculations, as well as measurements, indicate that this figure approximates the water pressure of the combustion gases in a steam-atomized, oil-fired open hearth. Oxygen pressures in the open hearth can vary from 10"2 atm in the combustion gases to between l0-' and 10" atm in the steel bath. The former figure depends on the combustion practice and the latter on the carbon content and temperature of the bath. The oxygen pressure of the slag should lie somewhere between these extremes and is expected to be closer to that of the steel bath than that of the combustion gases. Oxygen pressures were therefore varied between 10" and 6 x l0 atm. At the lowest pressure the slag "puffed up" when quenched (indicating possible loss of water) so experiments were not conducted at lower oxygen pressures. The results are shown in Fig. 1, which includes the water content of the slag "as sampled". The results show that the water content of the slag increased appreciably on equilibration with water vapor at 0.192 atm pressure and that the water solubility apparently decreases with increased oxygen pressure. The solubilities found are comparable to those of the Li20-Ca0-Si02 system.3 Work with synthetic slags in the "Fe0"-Fe203-SiOz system was performed at 1500" C, with Ph20 = 0.192 atrn and for oxygen pressures varying between 10"2 and 10-lo atm. Samples for chemical analysis were prepared as described by Larson.4 The results are shown in Fig. 2. Some low-silica melts tested at low oxygen pressures "puffed up" when quenched and analyzed less than 100 ppm water; these results are not included in Fig. 2. The melts containing 40 mol pct silica also showed a tendency to "puff up" during the quench, when they were tested at the lowest oxygen pressure. These results indicate that, at constant silica content, the solubility of water decreases somewhat with increased oxygen pressure. The effect is, however, small considering the wide range of oxygen pressures studied. Also, at constant oxygen pressure (above about lom5 atm) the solubility increases

Jan 1, 1963

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

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

Jan 1, 1986

By H. Morgolin, M. A. Greenfield, P. A. Farrar

In attempts to correlate mechanical properties with microstructure, it is desirable to determine the effect of ß grain size. Determination of 6 grain size is not a problem where a has precipitated at ß grain boundaries. However, in alloys which have been processed to produce an equiaxed a +ß structure the ß grain size is difficult to determine because ß grain boundaries do not etch. The ß grain size can sometimes be laboriously determined by searching for grains which have some a! outlining the 6 grains. This difficulty of ß grain size determination in equiaxed a + ß alloys can be overcome by heating below the ß transus temperature for a short time and water quenching. Fig. 1 shows the starting equiaxed a + ß structure of the Ti-5.25A1-5.5V-0.9Fe-0.5Cu alloy used in this investigation, and Fig. 2 shows the microstructure of the same sample water-quenched after heating 1 min at 1675"F, which is 25°F below the 0 transus. The heavily etched microstructure consists of some equiaxed a! in a structure showing considerable amounts of transformed ß. The ß grain

Jan 1, 1969

By P. B. Baxendell

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

Coal production during 1963 amounted to 446 mil- lion tons, an anticipated increase of about 6% over the 1962 production of 422 million tons. Electric consumption was 207 million tons, a continuation of its upward trend with an increase of about 7%. The metallurgical market consumed 77 million tons: the industrial market, 96 million tons; and the retail market, 26 million tons. Exports were 46 million tons. Modernization continues in the coal industry as it approaches the mid-1960's. The industry has shown a keen desire to explore and pursue new developments, new concepts and new managerial methods and techniques that have become so vital and important for industrial well-being.

Jan 2, 1964