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By William H. Spice

The fault zone of south central Texas showed renewed activity during I940 along a trend roughly paralleling the old established Balcones fault-line group of producing fields. This was a result of the new discoveries in the Wilcox (Eocene) formation in southeastern Texas and Louisiana. As of the end of the year, one new field producing from the Wilcox formation had been discovered on the Washburn ranch in La Salle County, along the southwestern limits of the district, and several projected tests into that formation were under way. In the western part of the district, par-titularly in the part of the Rio Grande embayment that is in Dimmit, Webb and Zavala Counties, there has been renewed leasing activity with the shallower sands in the Navarro-Taylor formations (Upper Cretaceous) as the objective in several projected tests for the early part of 1941. Three new fields have been discovered along the old fault-line trend, but these have been comparatively small, producing either from Dale lime, Austin chalk or Buda lime. No new fields were discovered during the Year in the Edwards (Lower Cretaceous) lime horizon. Approximately 260 wells were drilled in the district during 1940, which resulted in four new oil fields. Twenty-seven new wells were completed in the Proven Edwards lime fields of Darst Creek, Luling and Salt Flat and seven were added to production in the Pearsall field. Approximately 160 wells in 18 counties were completed as failures during the year. The district produced 7,659,634 bbl. during 1940, which was a 9 per cent decrease under production for 1939. In all, 3559 wells were producing at the end of I940, compared with 3562 wells producing at the end of the previous year; 104 new producing wells were completed and 163 wells were abandoned in the producing fields of the district. During 1940 considerable exploratory work was carried on along the Wilcox trend within the district, particularly by major companies employing various types of geophysical methods, and leasing activity increased considerably. At the end of the year, the total number of acres of nonproducing leases held by major companies in the district increased about 10 per cent. It is anticipated that this activity will continue into the first part of 1941 and will be supplemented by several exploratory test wells. New Fields B,, Creek, Caldwett County.— . R. Ogden NO. 2 Talley, discovery well of the Bee Creek field, in the northeastern part of Caldwell County, was completed on March 16, I940, in Dale lime from 2091 to 2238 ft., pumping 85 bbl. per day, 39° A.P.1. gravity. The discovery of this field can be credited to a combination of subsurface geology and magnetometer work, which indicated the presence of a serpentine intrusion. At the end of the year, ,3 producing oil wells had been completed and the field has produced a total of 47,050 barrels.

Jan 1, 1941

By Walter Miller

A surprising development during the year was the continued high demand for petroleum products and the high level of crude oil charges to the stills. Generally speaking, the petroleum industry during 1946 succeeded in producing a greater quantity of crude oil and petroleum products than in any of the war years, and considerably exceeded the production of any prewar year. Daily crude still charges averaged between 4,700,000 and 4,800,000 bbl per day for 1946 and about equaled the 1945 record, although most pessimistic 1945 guesses, predictions, or fears ranged, for 1946, from only 3,900,000 to 4,400,000 bbl per day. In spite of the high crude charge to the stills, total stock of crude oil was higher at the end of the year by some 7,000,000 to 8,000,000 bbl. A similar story holds regarding stocks of the principal refined products. Gasoline on hand at year's end was two to three million barrels lower, and was considered low for the expected demand during the coming high consuming season, while stocks of light and heavy fuel oils, although some higher than a year previous, hardly reached a comfortable level. The trend in gasoline of high octane number, which has resulted in a marked rise in. the antiknock quality by the end of 1945 (five or six numbers higher than during the war and one number higher than the prewar quality of civilian motor gasoline of 1941) was abruptly arrested by an acute shortage of metallic lead for manufacturing tetraethyl lead. Government action in the form of lead price control, rationing, and the setting of octane ceiling specifications to conform to the reduced ethyl lead compound available were enforced until abrogated at the end of the year. It will be interesting to see how rapidly the octane levels will resume the rising trend, as more metallic lead slowly becomes available for making greater quantities of ethyl lead compound. As octane quality rises over present levels the disadvantage of the refiner without catalytic cracking equipment will increase. Gasoline made by catalytic cracking, without addition of ethyl lead, approximates 77 octane by the official ASTM Motor Method test, compared with 66 for gasoline generally similar in volatility made by the older thermal cracking operation. Catalytic gasoline shows an even greater improvement in the Research octane number, the comparison being roughly 86 Research versus 71 Research octane for the thermal cracked product. This higher differential in Research octane is credited by many, although not universally so, as contributing to better road performance, and consequently resulting in a more desirable product marketwise. In some parts of the country a premium of roughly one fourth cent per gallon is now being paid for gasoline with higher Research octane made possible by including catalytic cracked product in the final blends. If such price differentials in favor of catalytic gaso-

Jan 1, 1947

By Walter Miller

A surprising development during the year was the continued high demand for petroleum products and the high level of crude oil charges to the stills. Generally speaking, the petroleum industry during 1946 succeeded in producing a greater quantity of crude oil and petroleum products than in any of the war years, and considerably exceeded the production of any prewar year. Daily crude still charges averaged between 4,700,000 and 4,800,000 bbl per day for 1946 and about equaled the 1945 record, although most pessimistic 1945 guesses, predictions, or fears ranged, for 1946, from only 3,900,000 to 4,400,000 bbl per day. In spite of the high crude charge to the stills, total stock of crude oil was higher at the end of the year by some 7,000,000 to 8,000,000 bbl. A similar story holds regarding stocks of the principal refined products. Gasoline on hand at year's end was two to three million barrels lower, and was considered low for the expected demand during the coming high consuming season, while stocks of light and heavy fuel oils, although some higher than a year previous, hardly reached a comfortable level. The trend in gasoline of high octane number, which has resulted in a marked rise in. the antiknock quality by the end of 1945 (five or six numbers higher than during the war and one number higher than the prewar quality of civilian motor gasoline of 1941) was abruptly arrested by an acute shortage of metallic lead for manufacturing tetraethyl lead. Government action in the form of lead price control, rationing, and the setting of octane ceiling specifications to conform to the reduced ethyl lead compound available were enforced until abrogated at the end of the year. It will be interesting to see how rapidly the octane levels will resume the rising trend, as more metallic lead slowly becomes available for making greater quantities of ethyl lead compound. As octane quality rises over present levels the disadvantage of the refiner without catalytic cracking equipment will increase. Gasoline made by catalytic cracking, without addition of ethyl lead, approximates 77 octane by the official ASTM Motor Method test, compared with 66 for gasoline generally similar in volatility made by the older thermal cracking operation. Catalytic gasoline shows an even greater improvement in the Research octane number, the comparison being roughly 86 Research versus 71 Research octane for the thermal cracked product. This higher differential in Research octane is credited by many, although not universally so, as contributing to better road performance, and consequently resulting in a more desirable product marketwise. In some parts of the country a premium of roughly one fourth cent per gallon is now being paid for gasoline with higher Research octane made possible by including catalytic cracked product in the final blends. If such price differentials in favor of catalytic gaso-

Jan 1, 1947

By John C. Robison

INTRODUCTION Sensitivity analysis is a means of gauging the impact of individual risks on a financing. Key risks can occur in three time periods: - Feasibility, engineering and construction phase; - Start up phase (usually through completion); - Operating phase (post completion). If a company has agreed to cover these risks prior to completion, then less attention will be paid to the sensitivity of the project in the first two time periods. Since the operating phase of the project generates cash for both operations and debt service and generally does not begin until two to six years after the loan is signed, it is wise to look at scenarios other than the projected "base-case" scenario in order to determine the project's capability to operate successfully under a broad range of probable future events. Lenders are compensated at a fixed spread over their borrowing base and generally are not compensated if the project is successful beyond expectation. They are also subject to the loss of principal plus funding costs if the project performs below expectation. Because of this, lenders establish sensitivities around the parameters of conservative projections developed in the project feasibility studies and the cash flows resulting from these projections. The initial cash flow projections should demonstrate the project's ability to meet cash costs, debt service requirements (principal and interest), and still have sufficient cushion to cover contingencies such as strikes, price fluctuations, force majeur situations, etc. (See Schreiber, Chapter 10). The selection of the level of sensitivity analysis to be performed is the result of both objective criteria, including probabilistic analysis applied to the technical parameters, and, of equal importance, subjective criteria applied by the analysts, especially with regard to the economic and financial parameters impacting the project cash flows. RISK SENSITIVITY Assumptions used in the cash flow projections should be realistic. Risks identified by the lenders should be identified and cash flows prepared to assess whether these project risks are acceptable. Typical project risks include the following (see also Chapter 9): - Sufficient reserves - quantity and quality - Product price - Production level - Operating costs - Availability of energy and supplies - Transportation and infrastructure requirements and costs - Interest rate - Completion risks - Tax level - Political risks - Cost over-run risks - Operator experience - Management - Technological risks - Environmental permits and risks - Foreign exchange risks - Insurance coverage - Equity of sponsors - Inflation rate - Capital expenditure during project life In order to see the effect on the cash flow projections, each risk should be analyzed for its impact on the cash flow generating capacity of the project. Sensitivities can be examined to see if the resultant cash flow projection will meet the lenders minimum credit standards. 1.Reserve Sensitivity In general, lenders will not assume the reserve risk. However, it should also be noted that lenders receive loan proposals in which reserves range anywhere from proven to possible. Sensitivities are not generally run for various reserve levels and reserve estimates are either considered acceptable or not acceptable by the lenders.

Jan 1, 1985

By William H. Spice

The fault zone of south central Texas showed renewed activity during I940 along a trend roughly paralleling the old established Balcones fault-line group of producing fields. This was a result of the new discoveries in the Wilcox (Eocene) formation in southeastern Texas and Louisiana. As of the end of the year, one new field producing from the Wilcox formation had been discovered on the Washburn ranch in La Salle County, along the southwestern limits of the district, and several projected tests into that formation were under way. In the western part of the district, par-titularly in the part of the Rio Grande embayment that is in Dimmit, Webb and Zavala Counties, there has been renewed leasing activity with the shallower sands in the Navarro-Taylor formations (Upper Cretaceous) as the objective in several projected tests for the early part of 1941. Three new fields have been discovered along the old fault-line trend, but these have been comparatively small, producing either from Dale lime, Austin chalk or Buda lime. No new fields were discovered during the Year in the Edwards (Lower Cretaceous) lime horizon. Approximately 260 wells were drilled in the district during 1940, which resulted in four new oil fields. Twenty-seven new wells were completed in the Proven Edwards lime fields of Darst Creek, Luling and Salt Flat and seven were added to production in the Pearsall field. Approximately 160 wells in 18 counties were completed as failures during the year. The district produced 7,659,634 bbl. during 1940, which was a 9 per cent decrease under production for 1939. In all, 3559 wells were producing at the end of I940, compared with 3562 wells producing at the end of the previous year; 104 new producing wells were completed and 163 wells were abandoned in the producing fields of the district. During 1940 considerable exploratory work was carried on along the Wilcox trend within the district, particularly by major companies employing various types of geophysical methods, and leasing activity increased considerably. At the end of the year, the total number of acres of nonproducing leases held by major companies in the district increased about 10 per cent. It is anticipated that this activity will continue into the first part of 1941 and will be supplemented by several exploratory test wells. New Fields B,, Creek, Caldwett County.— . R. Ogden NO. 2 Talley, discovery well of the Bee Creek field, in the northeastern part of Caldwell County, was completed on March 16, I940, in Dale lime from 2091 to 2238 ft., pumping 85 bbl. per day, 39° A.P.1. gravity. The discovery of this field can be credited to a combination of subsurface geology and magnetometer work, which indicated the presence of a serpentine intrusion. At the end of the year, ,3 producing oil wells had been completed and the field has produced a total of 47,050 barrels.

Jan 1, 1941

By Lawson P. Entwistle

One of the important reserves of mangani-ferous iron ore is at Boston Hill, near Silver City, New Mexico. The area consists of a faulted block of gently dipping Lower Paleozoic shale, dolomite, limestone and sandstone, which has been intruded by a roughly circular mass of quartz-bearing monzonite porphyry and subordinate dikes. Prom a noselike protuherance of the intrusion radiate many premineral faults, which have localized much of the hypogene mineralization. Three important stages of hypogene mineralization can be recognized: (I) mesitite, a manganiferous iron magnesite, (2) quartz sulphides, and (3) barite-galena The carbonate stage is widespread but stronger near the intrusion. The quartz may have been derived from hydrothermal alteration of the igneous rocks. Barite-galena is most important in the Chloride Flat mining district, about one mile north, where argentiferous galena provided silver for the supergene ore. The hypogene carbonate, lean in iron and manganese, has been oxidized and consequently enriched by meteoric waters containing an excess of oxygen and carbon dioxide to form ore bodies of intimately mixed hematite and pyrolusite. The ore bodies, at one place attaining a length of 1600 ft., a width of 300 ft., and a thickness of 25 ft., are largely confined to areas of brecciation and to spreads from faults in Silurian dolomite beneath soft Devonian shale. Boston Hill comprises three rolling hills southwest of and adjoining the town of Silver City (pop. 5044), Grant County, N. Mex. The mining district covers less than 2 sq. miles. Silver City, on a branch line of the Atchison, Topeka, and Santa Fe Railway, is a supply point for the important mining communities at Santa Rita, Hurley, Hanover, Tyrone, and Mogollon. The Chloride Flat mining district adjoins Boston Hill on the north. History and Production Bonanza-type silver ores were discovered in the Chloride Flat mining district during the silver boom of the seventies and eighties, at which period it has been credited with as much as $5,000,000 production. In 1916 manganiferous iron ore was first shipped from the Boston Hill mining district to Pueblo, Colo., where it was mixed with manganese ore from Lead-ville and smelted into spiegeleisen. During 1926 and 1927 the Colorado Fuel and Iron Co. mined and churn-drilled part of the district. Mining operations ceased during the depression of the thirties, but production was resumed in 1937. Since 1916 the Boston Hill mining district has produced about 600,000 long tons of ore averaging about 12 per cent manganese and 35 to 40 per cent iron.

Jan 1, 1949

By Lawson P. Entwistle

One of the important reserves of mangani-ferous iron ore is at Boston Hill, near Silver City, New Mexico. The area consists of a faulted block of gently dipping Lower Paleozoic shale, dolomite, limestone and sandstone, which has been intruded by a roughly circular mass of quartz-bearing monzonite porphyry and subordinate dikes. Prom a noselike protuherance of the intrusion radiate many premineral faults, which have localized much of the hypogene mineralization. Three important stages of hypogene mineralization can be recognized: (I) mesitite, a manganiferous iron magnesite, (2) quartz sulphides, and (3) barite-galena The carbonate stage is widespread but stronger near the intrusion. The quartz may have been derived from hydrothermal alteration of the igneous rocks. Barite-galena is most important in the Chloride Flat mining district, about one mile north, where argentiferous galena provided silver for the supergene ore. The hypogene carbonate, lean in iron and manganese, has been oxidized and consequently enriched by meteoric waters containing an excess of oxygen and carbon dioxide to form ore bodies of intimately mixed hematite and pyrolusite. The ore bodies, at one place attaining a length of 1600 ft., a width of 300 ft., and a thickness of 25 ft., are largely confined to areas of brecciation and to spreads from faults in Silurian dolomite beneath soft Devonian shale. Boston Hill comprises three rolling hills southwest of and adjoining the town of Silver City (pop. 5044), Grant County, N. Mex. The mining district covers less than 2 sq. miles. Silver City, on a branch line of the Atchison, Topeka, and Santa Fe Railway, is a supply point for the important mining communities at Santa Rita, Hurley, Hanover, Tyrone, and Mogollon. The Chloride Flat mining district adjoins Boston Hill on the north. History and Production Bonanza-type silver ores were discovered in the Chloride Flat mining district during the silver boom of the seventies and eighties, at which period it has been credited with as much as $5,000,000 production. In 1916 manganiferous iron ore was first shipped from the Boston Hill mining district to Pueblo, Colo., where it was mixed with manganese ore from Lead-ville and smelted into spiegeleisen. During 1926 and 1927 the Colorado Fuel and Iron Co. mined and churn-drilled part of the district. Mining operations ceased during the depression of the thirties, but production was resumed in 1937. Since 1916 the Boston Hill mining district has produced about 600,000 long tons of ore averaging about 12 per cent manganese and 35 to 40 per cent iron.

Jan 1, 1949

By John Birkinbine

The experience of the past five years has furnished opportunities to study and to partially explain the operation and some of the causes of the short blast of Warwick Furnace at Pottstown, Pennsylvania, as described in the paper read at the Lake Superior Meeting, in August, 1880.* The many inquiries concerning the details of furnace operation which followed the publication of the paper, and the expressed desire of furnace managers to be informed as to future operations of this plant, have encouraged the preparation of the following data. To make the record continuous, and add to the value of both contributions, the present paper commences where the review of a short blast of Warwick Furnace ended, and includes the data of another short blast of two months, and a subsequent continuous campaign of nearly five years, which, by comparison, we shall designate as "the long blast." Frequent visits to the plant in the five years, during which its operation could be studied, and correspondence with the manager, Mr. Edgar S. Cook, have given a knowledge as to general features and details, and the courtesy of the officers of the Company which has given free access to the books of record permits the presentation of data which it is believed will be welcomed by furnace managers. Interest will undoubtedly be increased by the remarkable results which Mr. Cook has achieved chiefly with anthracite coal in a furnace whose details of construction will scarcely be generally admitted as embodying advanced ideas, its height being but 55 feet, with a bosh diameter of 15 feet 6 inches, its bosh-slope comparatively flat, its crucible smaller than the average, and the heat of the blast never reaching 1000' Fahrenheit. At present writing the credit of the best anthracite blast-furnace practice recorded in our Transactions is conceded to be that pursued by Mr. Fackenthal, at the Durham furnace, and Mr. Cook, at War-

Jan 1, 1886

• Pellets of concentrated iron ore have been smelted in the blast furnace by Armco and the results proved satisfactory. Various percentages of pellet burdens were tried and it has been found that charges up to 70 pct pellets are workable. •In the reorganization of the Department of the Interior, two new assistant secretaries were appointed and the work divided between the four assistant secretaries. C. Girard Davidson will head a division of mineral resources including the Bureau of Mines, Geological Survey, Division of Oil and Gas and Division of Geography. •Germanium, one of the rarest of metals and a wartime strategic material, has been discovered almost in the shadow of the Capitol. The only catch is that the scattered nature of the deposits makes profitable recovery extremely doubtful. Nevertheless, experts have tabbed the concentration in the District of Columbia area the world's second richest known concentration of the element. • Cakes of mica, weighing up to 500 lb, have been formed at the Colorado School of Mines by a new "cool hearth" method. The process avoids use of crucibles and contains the molten mica in a basin of unmelted raw mixture from which the melt was derived. Crystallization takes place in this melting basin which forms a center pool surrounded by a solid cool mass of the unmelted raw mixture. • William 1. Baxter, of the International Economic Research Bureau, predicts a period of deflation because of war-essential restrictions on consumer credit and materials use. He stated; "the recent prosperity was based mainly on the sales boom in autos, homes, and household accessories." •Two subsidiaries of United States Steel have decided to build four new ships immediately to augment iron ore and limestone carrying capacity on the Great Lakes to meet demands created by the national defense emergency. •The Norfolk and Western Railway is making a complete change over to coal to drive its locomotives. •A national roster of scientific personnel similar to the one used in the last war will be established by the Office of Education, by agreement with the National Security Resources Board. The new unit, the National Scientific Register Project, will make studies of the Nation's scientific manpower supply and recommend steps to increase the numbers of skilled personnel where needed. •National Lead Co. will start construction immediately of new facilities at St. Louis, Mo., for production of titanium pigments for paints. Producers of titanium pigments have been under considerable pressure to meet all demands from paint manufacturers, particularly for titanium dioxide. •The basic criteria for deferment of reservists in civilian occupations are (1) the Department of Labor List of Critical Occupations, and (2) the Department of Commerce List of Essential Activities, both of which were announced Aug. 3. Fundamentally, the reservist deferred must be engaged in a critical occupation which is necessary to a highly essential activity, and he will be deferred only until he can be satisfactorily replaced in that occupation. A delay in call to active duty, it was emphasized, may not be considered as an indefinite exemption from military service.

Jan 9, 1950

By Thomas C. Baker

The Fresnillo unit of the Mexican Corporation, S. A., is situated at the old historic mining town of Fresnillo, Zacatecas, Mexico, 33 miles north of the city of Zacatecas and 750 miles south of El Paso, Tex. It is connected with the Mexican Central Railroad by a broad-gage spur 5.5 miles long, belonging to the company. Fresnillo is surrounded by a broad semi-arid valley on the Mexican plateau at an elevation of 7300 ft. The monotony of the valley is broken by a number of low hills. Near the town of Fresnillo is the " Cerro de Proano," an elliptic-shaped hill of gentle slope, rising out of the plain to a height of 325 ft.; the base has a major axis of 4500ft. and a minor axis of 3000 ft. In this hill is the silver-bearing mineralized zone, which comprises past and present mining operations. (In this paper money values are expressed throughout in American currency and the dry short ton of 2000 lb. is used.) The discovery of ore at Fresnillo is credited to the Spaniards, soon after the conquest of Mexico. There are, however, no authentic records to show the amount of work done by them. In 1832, the State of Zacatecas took possession of the property and operated it. Evidently the rich ore above the horizon of the plain had been fairly well exhausted, as an old record states that thirty shafts were used for unwatering, requiring 300 men and 1500 animals. The cost of pumping alone amounted to $150,000 a year. In spite of the fact that cheap convict labor was used, mining costs were reported as $20 and treatment charges as $20 per ton. In 1835, the state was obliged to seek foreign capital, and a company formed in London secured a controlling interest in the property. This new organization sank two shafts, one 11 by 19 ft. and the other 10 by 15 ft., to unwater the mines and extract ore. Large Cornish pumps were purchased in England and hauled overland from Vera Cruz; engines also were installed to operate the arrastres (grinding mills) in the patio process of ore treatment. Substantial buildings were erected and operations were conducted on a large scale, for that period. The patio, the largest in Mexico, was 1150 ft. square. The costs for 1850 were:

Jan 1, 1925

By Benjamin F. Tillson

The hammer drill rightly receives the credit for having made the one-man drill possible, and so many economies seem possible through the proper application of different types of hammer drills to various mining, quarrying, and excavating operations, that an indication of the 'economies effected by the New Jersey Zinc Co. at its Franklin mines may be of pertinent interest. When this company commenced its trials of hammer drills in 1907, these tools had not been developed to one-fourth the capacity and refinement which they have at present. At that time it was frequently stated that such a small tool, drilling holes of less diameter than the reciprocating rock drill, could not drill enough holes in a shift to permit the placing of sufficient explosive to break a tonnage of ore comparable with that produced by the "rock drills;" that the placing of small holes inclined upward, at angles steeper than 40' above the horizontal, could not be expected to produce results equal to the large flat, wet or dry, holes in the breasted back of an overhand stope, and would only shatter the ground so as to make the back unsafe. In spite of these adverse opinions, the hammer drills first showed their superiority over both heavy and light reciprocating drills in raising and in stoping, and then in drifting and quarry work. As a result, all of the reciprocating drills at the Franklin mines were scrapped three years ago, all of the mining work being accomplished with increased efficiency, as shown in detail in this article. With the advent of the hammer drill in this property, it was considered advisable to make comparative tests of all the tools accessible, and it has since been the policy to investigate the merits of any advance of the drilling art in order to get the maximum amount of work from the tools. The necessity of devising some means of standardizing drill tests, and of measuring the consumption of compressed air as well as the drilling speed, was early realized. The common test was to fill a measured air receiver with compressed air at a certain gauge pressure, run the drill until the pressure had dropped to too low a figure, then compute from the time, drop in pressure, and

Jan 1, 1915

By Alex McCoy

SAMPLING of the fluid from oil wells for percentages of oil, emulsified oil, and water during the last two years has brought out some interesting facts concerning oil-water emulsion. This result led to a laboratory investigation of emulsion, which substantiated the conclusions made from the field observations. The purpose of this paper is to present the information collected, the laboratory experiments, and our interpretation of the same. In order to define emulsified oil exactly, give its synthesis and origin, and to show how and when it is formed in the wells, the work was necessarily divided into two separate lines-laboratory work and field observations. It is hoped that this study may lead to a discussion of such points so that the petroleum engineer, geologist, or technologist may be benefited by its practical bearing on oil-field management. Special credit is due Mr. Everett Carpenter, chief geologist of the Empire Gas & Fuel Co., for his assistance and cooperation in this work. LABORATORY INVESTIGATIONS ON EMULSIFIED OIL Laboratory investigations were conducted in an attempt to learn the composition and some of the properties of emulsified oil, or B. S., as it is more commonly called, also to demonstrate, by laboratory methods, how B. S. may be formed under conditions similar to those existing at the time a well is being pumped, and how it may be broken down. Literature bearing on this subject is widely scattered and very limited in scope. Bacon and Hamor define B. S., or bottom settlings, as "earthy matter, inert organic matter, or, in the case of Pennsylvanian petroleum, an emulsion of paraffin wax and water, which accompanies crude oil." In this discussion we will limit the term B. S. to that heavy,

Jan 8, 1919

The annual report of the Secretary of the Southern California Local Section for the year ending May, 1919, says that the Section was called upon to give all the assistance possible for the different Liberty Loan drives, for the Red Cross drives and not only in the canvass of our membership, but the canvass of all of the mining companies represented in this city. The committee on the Red Cross drive on which we were represented raised a larger proportion of the total amount than any other in the city. The subscriptions for Liberty Bonds from the members of our' Section that were credited to the Committee of the Joint Technical Societies exceeded in amount the subscription from the members of all the other technical societies combined. Members of our Section slid splendid and efficient work throughout the first half of the year at the Red Cross headquarters in this city, and under the leadership of A. B. W. Hodges and F. B. Close, systematized the work of handling the enormous quantity of material that passed through that organization. Mr. E. A. Montgomery directed the canvass of the mining companies of this city in the bond drives, and the Executive Committee did its part in solicitation among the mining engineers. The Section, together with the local sections of the American Chemical Society, American Institute of Architect, American Institute of Electrical Engineers, American Society of Civil Engineers, American Society of Mechanical Engineers, and the local Engineers and Architects Association, forms what is called the Joint Committee of the Technical Societies. of Los Angeles. The honor of having the first president of this combined organization of engineers was given to us with, the election of Mr. Seeley W. Mudd. Upon Mr. Mudd's entering the service, Mr. George A. Daman of the Electrical Engineers was elected to the position and served splendidly during the latter part of the year. It devolves upon this Section to be represented upon this Joint Committee by three members, and it is our duty to supply a speaker once in six weeks to address the engineers in attendance at the weekly luncheon. During the year not a few of the most prominent men of the engineering professions have spoken upon subjects of the greatest interest to us all. Had it not been for the organized team work in the engineering profession available through this Joint Committee, there would have undoubtedly been passed in the recent session of the legislature of this state a bill for licensing and registering all professional engineers in this state, which, in the opinion of your Executive Committee and a large proportion of the membership of this Section, would have fallen far short of either protecting the engineer or protecting the public from impostors. That the public is awakening to the importance of what our National Society represents in the profession of mining engineering can be well inferred from the increasing number of inquiries your Secretary receives regarding the reputation of mining engineers. The necessary qualifications which a membership in the Institute requires and the membership of an engineer in this National Organization is more and more a criterion as to the ability of an engineer who represents himself as such, to the general public.

Jan 9, 1919

By Charles Morris, Patricia Petty

Charles Morris Minerals engineers have a new opportunity to shape their industry's future. They can help secondary school teachers in their own communities improve their scientific knowledge and thus be better prepared to teach their students. Local sections of AIME and other groups are being asked to sponsor expense-aid scholarships for teachers who complete the summer field course A Total Concept of the Mining Industry. Now in its 18th year, the six-week summer course is presented by the Colorado Mining Association Education Foundation Inc., in cooperation with the Colorado School of Mines Office of Special Programs Continuing Education. The course will be held June 9 through July 18. "In the past, we have been successful in soliciting support for teacher-scholars from many organizations, corporations, and individuals within the industry," said John Robertson, Jr., Foundation chairman. "Now we hope to enlist the help of engineers at the grass roots level in identifying qualified local teachers and giving them what it takes to participate in this continuing education program." Robertson said the course provides secondary school teachers, counselors, and administrators with a working knowledge of the mining and metallurgical industries. It also helps teachers recognize career opportunities for their students. "With the industry facing a challenging new era, we must have teachers who can relate the excitement of this challenge to their students. They will inspire future generations of resource finders, developers, and managers," he said. More than 670 teachers in 27 states, including 45 graduates of the "class of '85" have completed the course and gained six semester hours of graduate credit. The Foundation's Planning and Curriculum Committee meets regularly to develop the course outline and recruit the faculty. Lecturers are selected on their ability to communicate with people not familiar with the industry. Last year, 67 faculty members came at their own time and expense to discuss their specialties, ranging from exploration to marketing. Normally, teachers receive scholarship aid in the form of tuition and fees, and transportation and meals while on field trips. Expense-aid scholarships cover room and board on campus for those beyond the Denver-Metro area, and travel to and from Golden. "We hope to broaden the appeal and the geographical range of the program," Robertson said. Inspiration for the field summer program for teachers came in 1967 from a mining engineer, the late C.L. (Lindy) Barker, a 1931 graduate of the Colorado School of Mines. Barker and a group of concerned individuals convinced the Colorado Mining Association to accept sponsorship of the course in 1968. The Colorado School of Mines and its Office of Special Programs and Continuing Education agreed to be a co-sponsor to give it accreditation and provide physical facilities and coordination. The first course was held in 1969. Operating funds were solicited from industry to pay tuition, course material, the cost of a course coordinator, field trips, and overhead. Through the years, personal contact by an industry representative has been the most effective teacher recruiting tool. Through expense-aid scholarships provided by local sections of professional organizations, such as AIME, as well as CSM alumni and other friends, there will now be a greater incentive for more teachers to get to know the minerals industry and pass that knowledge on in the classroom.

Jan 3, 1986

By M. L. Requa

This paper is abstracted from the report of the Appraisement Committee of the Independent Oil Producers' Agency, of which the writer was Chairman. The other members of the committee were M. V. McQuigg and R. S. Haseltine. To Thomas Cox, engineer in charge of the investigation, and to his efficient staff of assistants, is due the credit for the detail work necessary in carrying out the plan of the Committee. It treats only of the valuation of the lands, wells, and piping, without going into details of equipment and other features. It was recognized, early in the operation, that the value of oil lands was the value of oil ,to be extracted and marketed, less the costs attendant thereon. Referring this back to the costs in cents per barrel, it became obvious that surface improvements, absolutely necessary in the production of oil, from wells then drilled, had no separate and independent value aside from the value of the land, but that any excess equipment, not necessary for the production of oil from present wells, such as drilling tools, well casing, etc., should be given a present condition value. In valuing the properties of the Independent Oil Producers' Agency, the Committee has considered the following facts: 1. That from each property there will ultimately be produced a certain total quantity of oil. 2. That in the production of that oil a certain total quantity of money will be expended. 3. That a certain total amount of money will be received from the oil. 4. That the total net receipts will be the total gross receipts less the cost of development and production. 5. That the present value of the net receipts must be such an amount that when invested by a purchaser it will be returned with 8 per cent, interest additional during the life of the property. The initial procedure consisted in making a general reconnaissance of the entire district in which the property was located and determining the lithological and structural conditions underlying the area. The data obtained from each individual tract comprised the logs of all the wells

Jan 1, 1918

By Jr. D. C. Williams, D. V. Carter

The four new oil-field discoveries made in the East and East Central Texas districts during 1941 were the East Long Lake field, Anderson County; Pickering field, Shelby County; Pleasant Grove field, Rusk County, and Tri-Cities field, Henderson County. The discovery of oil production in the Pettit lime of the Lower Glen Rose was made in the Groesbeck (Barron) field in Limestone County and the Willow Springs field in Gregg County. Important extensions were made to the Pittsburg field, in Camp County, the Chapel Hill field, in Smith County, and the Hawkins field, in Wood County. The Hawkins field was extended sufficiently to more than double the number of proved surface acres. As usual the East Texas field led the district in the number of completions for the year. The second most active field during the year was the Hawkins field, with 250 new wells completed. The third most active was the Long Lake field, in which 50 wells were completed. Approximately 964 wells were completed in the district during 1941. Production and Probation The district is credited with having produced 163,566,695 bbl. of oil and distillate during the year. This represents a decrease of 4 per cent from the 170,424,685 bbl. of oil and distillate produced during the preceding year. The production of 130,378,620 bbl. of oil and distillate from the East Texas field represents 79.7 per cent of the total production of the district; that is, 6.3 per cent less than the production for the year 1940, The district had an estimated basic daily allowable of 614,982 bbl. of oil on Dec. 31. Approximately 33 per cent of the state's annual production was produced in the district, compared with 34.9 per cent for 1940. Since the majority of the fields in this district are subject to proration, any change in the annual production is attributable largely to changes in proration schedules and number of shutdown days. Fields subject to shutdown days were closed in for 113 days during the year, with the exception of the East Texas field, which was shut down 111 days. An order was promulgated by the Oil and Gas Division of the Texas Railroad Commission for encouraging the disposal of salt water and reservoir-pressure maintenance in the East Texas field. Discoveries Tex Harvey Oil Company'sNo. I S. E. J. Cartmel was completed as the discovery well for the East Long Lake field, Anderson County. Production was found in the Woodbine sand, the horizon from which the Long Lake field produces. The Pickering field, Shelby County, secures its production from the Nacatoch sand, found at an approximate depth of 1510 ft., in A. E. McKiernan's No. I, Pickering Lumbering Co. This field is in an area near the state line in which a number of relatively unimportant and

Jan 1, 1942

By H. W. Schreiber, G. R. Castle

INTRODUCTION The small mining company faces the dilemma of how to finance the development of its properties. Many of these small companies don't have the financial resources to pay for development costs from their own funds and frequently they do not even have the financial strength to permit them to borrow the money needed for development. A project financing can sometimes be arranged in such a way as to solve this dilemma. A typical project financing will not provide the answer to the "little guy's" problem because most project financings require that the sponsors of the project provide completion undertakings and sometimes other undertakings. These undertakings are often a prerequisite to obtaining financing, and if the sponsor is not financially strong enough to provide the comfort that the lenders require, then the sponsor will have difficulty obtaining financing no matter what undertakings are offered. However, with a little imagination and the right set of circumstances, a project financing can sometimes provide the solution to the small mining company's problem. The Strathcona Sound Project is unusually suited as a case study because the sponsor, Mineral Resources International Limited,(MRI) was able to arrange a project financing for the development of the project even though the lenders probably would not have been willing to loan a similar amount of money direct to MRI based on the full faith and credit of MRI's balance sheet. The way that MRI was able to arrange this financing makes for an interesting story. THE CASE In early 1974, MRI owned 100% of a small to medium sized zinc - lead - silver massive sulfide deposit (Property) located 475 miles north of the Arctic Circle less than two miles from deep water on Strathcona Sound which is a shipping zone in the Canadian Arctic. The Property was situated at a desolate location except for an Eskimo settlement (Arctic Bay) which was about 20 miles west of the Property. In other words, the project required that complete infrastructure would need to be installed in this far northern location. Independent reserve and feasibility studies (Study) had been completed on the Property which confirmed a total of 6,825,000 tons of reserves classified and summarized as shown below on Table I: [ ] These reserves were based on 229 diamond drill holes totalling 58,909 feet and were established on a cut-off grade of 7% zinc and a minimum mining height of seven feet. The overall mining recovery rate was estimated at not less than 85% and not more than 90%. The feasibility study indicated that it would cost an estimated $45,044,000 to develop an underground mine, a concentrator, a town-site, a power plant, storage facility, loading dock, a tailings disposal area and an airstrip on the Property with an annual capacity of 525,000 tons of ore per year. The construction period was expected to take two years and projected capital costs were broken down as set forth below on Table II:

Jan 1, 1985

By Jr. D. C. Williams, D. V. Carter

The four new oil-field discoveries made in the East and East Central Texas districts during 1941 were the East Long Lake field, Anderson County; Pickering field, Shelby County; Pleasant Grove field, Rusk County, and Tri-Cities field, Henderson County. The discovery of oil production in the Pettit lime of the Lower Glen Rose was made in the Groesbeck (Barron) field in Limestone County and the Willow Springs field in Gregg County. Important extensions were made to the Pittsburg field, in Camp County, the Chapel Hill field, in Smith County, and the Hawkins field, in Wood County. The Hawkins field was extended sufficiently to more than double the number of proved surface acres. As usual the East Texas field led the district in the number of completions for the year. The second most active field during the year was the Hawkins field, with 250 new wells completed. The third most active was the Long Lake field, in which 50 wells were completed. Approximately 964 wells were completed in the district during 1941. Production and Probation The district is credited with having produced 163,566,695 bbl. of oil and distillate during the year. This represents a decrease of 4 per cent from the 170,424,685 bbl. of oil and distillate produced during the preceding year. The production of 130,378,620 bbl. of oil and distillate from the East Texas field represents 79.7 per cent of the total production of the district; that is, 6.3 per cent less than the production for the year 1940, The district had an estimated basic daily allowable of 614,982 bbl. of oil on Dec. 31. Approximately 33 per cent of the state's annual production was produced in the district, compared with 34.9 per cent for 1940. Since the majority of the fields in this district are subject to proration, any change in the annual production is attributable largely to changes in proration schedules and number of shutdown days. Fields subject to shutdown days were closed in for 113 days during the year, with the exception of the East Texas field, which was shut down 111 days. An order was promulgated by the Oil and Gas Division of the Texas Railroad Commission for encouraging the disposal of salt water and reservoir-pressure maintenance in the East Texas field. Discoveries Tex Harvey Oil Company'sNo. I S. E. J. Cartmel was completed as the discovery well for the East Long Lake field, Anderson County. Production was found in the Woodbine sand, the horizon from which the Long Lake field produces. The Pickering field, Shelby County, secures its production from the Nacatoch sand, found at an approximate depth of 1510 ft., in A. E. McKiernan's No. I, Pickering Lumbering Co. This field is in an area near the state line in which a number of relatively unimportant and

Jan 1, 1942

By C. M. Shigley

The record of the largest magnesium plant in the country utilizing sea water as a primary raw material stands as another victory in the struggle for large-scale production of pure chemical elements from the oceans. Bromine was the first element to be economically and commercially recovered when, in 1933, a six million pound per year unit was built on the Atlantic Coast near Wilmington, North Carolina, by the Ethyl-Dow Chemical Co.' The bromine was reacted with ethylene to produce ethylene dibromide, a necessary associate of tetraethyl lead in ethyl antiknock fluid. Within eight years that plant was doubled and redoubled, and another large unit was put into operation at Freeport, Texas, taking bromine from the Gulf of Mexico. In 1940, in fortunate anticipation of the impending demand for magnesium and the limitations of the production from natural brines, the Dow Chemical Co. turned again to the sea, and designed and erected a plant at Freeport to produce 18,000,000 lb. of magnesium per year from sea water.2 In March 1941, two months after the new plant had been put into successful operation, construction of an 18,000,000-lb. Government-financed addition was started. Late in 1941, as a part of the $400,000,000 defense program intended to produce 600,000,000 to 700,000,000 lb. of magnesium per year, Dow was asked to build and operate for the Government a 72,000- ooo-lb. plant near its original plant at Freeport. Within a few days after the Japanese made their attack at Pearl Harbor, preparation of a site was started at Velasco, Texas, for the construction of the Texas plant of the Dow Magnesium Corporation—the largest known magnesium plant utilizing sea water as its raw matcrial. Less than six months after the first piling was driven, urgently needed magnesium was in steady production. Five months later, the plant had exceeded its rated capacity. It remained above rated production until the general magnesium curtailment was applied to Government-owned plants in September 1944. Credit for the construction and operation record of the Dow magnesium plant must be divided among the efforts of a very determined group of men, an extremely favorable location, and a simple process. It is with the two latter aspects of the plant that this article will deal. The site for the new enterprise was chosen near Velasco, Texas, on property bordering the Brazos River at a point approximately 6 miles inland from the original magnesium plant and 7 miles inland from the Freeport Harbor on the Gulf of Mexico. This location was far enough away from the operating units to reduce both interference from construction and the vulnerability of closely bunched manufacturing operations to the then feared air attack. Yet the distance inland was not too great for the economical construction of a barge canal from the harbor to serve both the transportation of raw

Jan 1, 1949

The latest resource estimate for the Caspiche gold/silver/copper project in the Maricunga region of Chile was released by gold explorer Exeter Resource Corp. The resource is low grade, but bulk minable and drilling to date has shown a NI 43-101 compliant inferred resource of 1,117 Mt (1.23 billion st) grading 0.55 g/t (0.016 oz/st) gold, 3.81 g/t (0.111 oz/st) silver and 0.22 percent copper. Exeter said these findings make the in situ metals amounts of 609 t (19.6 million oz) of gold, 4.4 kt (137 million oz) of silver and 4.84 billion lbs of copper, which the company relates as 33.7 million gold equivalent ounces using assumed metal prices of $23.33/g ($800/oz) for gold, 35 cents/g ($12/oz) for silver and $2/lb for copper. The deposit is almost midway between Barrick?s Cerro Casale gold deposit and Kinross? Refugio Mine. In a statement Exeter chairman Yale Simpson said ?This updated resource estimate places Caspiche firmly among the world?s largest gold-copper discoveries in recent years and clearly supports our decision to aggressively drill the property, despite the global economic decline. ?We expect that the very substantial copper and silver credits will be extremely important, and will markedly impact the potential viability of Caspiche. Specifically, using metal prices of US$2/lb copper, $23.33/g ($800/oz) gold and 35 cents/g ($12/oz) silver, the 4.84 billion lbs of copper and 4.2 kt (137 million oz) of silver are equivalent to 376 kt and 62 t (12.1 and 2 million oz) of gold, respectively. ?Our recent drilling has defined what appears to be a coherent higher grade central zone associated with a definable early stage diorite intrusion. We expect this zone will be important in developing various mining and economic models for the project,? Simpson said. Exeter is still drilling the deposit to expand the re-source estimate further to the southeast and at depth and to upgrade the higher grade central zone to the indicated category. Simpson said, ?Exeter intends to enhance the value of Caspiche by continuing to de-risk the project through ongoing exploration, metallurgy, engineering, water and environmental studies. These studies will continue through the next 12 months and will lead to a conceptual development study. A timeline for the release of that study is being formulated. The project budget for the next 12 months is C$14 million.? Mineweb reported that Caspiche is likely too big of a deposit and at too high of altitude for Exeter to handle alone. Exeter will be looking to other majors, or perhaps the Chinese, to help develop this huge orebody. But, in the meantime, it also has its high grade Cerro Moro deposit in Argentina, which could be brought to production relatively quickly and at relatively low cost.

Jan 1, 2009