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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.

By A. Gene Collins

Rapid, sensitive, and precise methods of determing major, minor and trace constituents of oilfield brines are needed. Several methods have been developed or adapted by the Federal Bureau of Mines at the Petroleum Research Center, Bartlesville, Okla. The following methods are described in this report: Spectrophotometric and volumetric for iodides and bromides; potentiometric for pH, alkalinity, acidity, borate boron, total boron, and organic boron; gravimetric for potassium; disodium ethylenediaminetetraacetate (EDTA) volumetric for total hardness, calcium, and magnesium; spectrophotometric for fluorides; and color comparison .for arsenic. Adequate sensitivity, precision, and accuracy were obtained for each method. The Bureau of Mines pioneered in research on the analysis of oilfield waters (2, 46, 47).6 However, several of these early procedures were quite time consuming. Also, they did not include methods for determining trace and minor constituents of brines.

Jan 1, 1961

By M. Maldonado, J. A. Finch

"A flotation bank consists of a serial arrangement of cells. How to optimally operate a bank remains a challenge. This article reviews three strategies for optimizing bank performance: air profiling, mass-pull (froth velocity) profiling and Peak Air Recovery (PAR) profiling. These are all ways of manipulating the recovery profile down a bank, which may be the property being exploited. Mathematical analysis has shown that a flat cell-by-cell recovery profile maximizes the separation of two floatable minerals for a given target bank recovery when the relative floatability is constant down the bank. Available bank survey data is analyzed in respect to recovery profiling. Possible variations on recovery profile to minimize entrainment are discussed.INTRODUCTION Flotation is used to separate valuable minerals from each other and from gangue. To reach a target metallurgical performance, usually assessed in terms of concentrate grade and recovery, feed is passed through stages such as roughing, cleaning and scavenging. All these stages comprise serial arrangements of flotation cells known as banks, lines or rows. Although a bank is the simplest interconnection of cells in a circuit, i.e. the tails of one cell is the feed to the next cell down the bank, how to operate each flotation cell in a way that the whole bank performance is optimized remains a challenge. Significant efforts have been made towards understanding the effect of operating variables on the flotation performance of an isolated cell (Lynch et al., 1981; Finch and Dobby, 1990; Gorain et al., 1998). However in the case of banks the variables that can be manipulated increase with the number of cells in the bank and the problem of how to manipulate them to achieve optimum performance is difficult even disregarding variation in ore characteristics (Lynch et al., 1981, p. 16). In general, the more manipulated variables available the better for optimization purposes, however without clear guidance how to effectively use them it becomes an “embarrassment of riches”."

Jan 1, 2012

Breaks in coal slurry impoundments can threaten the lives and health of area residents, destroy homes and businesses and contaminate water supplies. This dangerous potential looms over coalmining regions in West Virginia and throughout Appalachia. The Coal Impoundment Project was begun in June 2003 to provide an inventory and mapping of active and abandoned impoundments in West Virginia. The project also provides the public with specific information about the impoundments in their communities. It is dedicated to alerting residents of danger and evacuation plans, reducing risk to residents and finding alternatives to impoundments. Since its first year, more than 100 impoundment sites have been added to the project’s Website.

Jan 1, 2005

By Woodcock J. T, Sparrow G. J, MacRae C. M

The external urfaces and interiors (as polished sections) of particles of coconut hell and extruded peat activated carbons taken from everal Australian carbon-in-pulp operations were examined with an optical micro cope, a scanning electron microscope, and an electron microprobe.Calcium carbonate (calcite) precipitated from the pulp was the major inorganic material on the external surfaces of the carbon particle, but several ore minerals, including quartz, hematite, pyrite, arsenopyrite, and clay minerals were also identified, along with trona, gypsum, a nickel cyanide, and a magnesium salt. Sections of carbon particles showed that calcite was virtually the only introduced inorganic material inside the carbons.It was distributed in the pores and cracks throughout the coconut shell carbon particles but tended to be concentrated in the outer layers of the extruded peat carbon particles. The mechanism of calcite formation and deposition is uncertain. Gold X-ray dot maps showed that gold was distributed through to the centre of coconut shell carbons and to a depth of at least 500 µm in extruded peat carbons. The distribution of gold within the carbon particles was similar to that of calcite.

Jan 1, 1988

By Onur Kacar

A numerical approach has been implemented to assess the settlements of pile groups bearing in clay. A three-dimensional finite element program has been utilized to model a vertically loaded spread footing, a single pile and a pile group. The soil-pile interaction was modeled with elastoplastic soil and interface elements. The model has been calibrated using a full scale load test results of the spread footing. The load transfer between the pile cap and the piles was assessed and compared with the measured load transfer. The predicted settlements for the pile group were compared with the settlements measured in the load test. Two analytical methods were adopted to predict the pile group settlements and they were compared with the measured values. The group effect determined from the analysis and load tests was compared with the interaction factor approach. It was shown that three-dimensional finite element approach can be successfully utilized to assess the soil-structure interaction and hence the load transfer between the piles and pile cap. Also, it was shown that the interaction factors method and equivalent footing method work well in the working stress range, however they underpredict the settlements at larger loads. INTRODUCTION The settlement and stress distribution of pile groups have been traditionally estimated based on load test results of single piles and accounting for the group effect using various approaches. The most widely used approaches are group interaction factor method, equivalent footing method and equivalent pier method. These approximate solutions are used very commonly in practice as full-scale load tests on pile groups are very expensive and time consuming. These approximate solutions are also adopted in design guidelines such as AASHTO LRFD Bridge Design Guidelines (2014) and FHWA Design and Construction of Driven Pile Foundations (2016). In this paper, a full-scale foundation load tests performed by Nagai et al. (1961) and reported by Koizumi and Ito (1967) is modelled using a three-dimensional numerical method. The settlements and the stress distribution on foundations were then compared with the traditional equivalent footing method and interaction factor methods.

Jan 1, 2018

By Luo Yang

It has been known that after initial pile driving, pile capacity gain over time (set-up) could constitute a significant portion of the total pile capacity. In the past, there has been very little guidance for incorporating pile set-up capacity in design. This may be due to large uncertainties involved in predicting the pile set-up. A comprehensive statistical database is developed to describe the increase of pile axial capacity with time, known as set-up, when piles are driven into sand. Based on the collected pile testing data, pile set-up is significant and continues to develop for a long time after pile installation. The statistical database shows that a lognormal distribution can be used to describe the probabilistic characteristics of the predicted set-up capacity using Skov and Denver?s equation. The main objective of this paper is to incorporate the set-up effect into a reliability-based Load and Resistance Factor Design (LRFD) of driven piles in sand. A First Order Reliability Method (FORM) is used to derive separate resistance factors that would account for different degrees of uncertainties associated with the measured short-term capacity and the predicted set-up capacity from the proposed semi-empirical equations. The incorporation of set-up effects in the LRFD helps improve the prediction of the total capacity of driven piles, resulting in more economical design. A practical design procedure within LRFD framework to incorporate the pile set-up effect is outlined at the end of the paper.

Jan 1, 2006

By P. Hickey

"The object of this paper is to describe how the Iron Ore Company of Canada develops its management personnel. It will elaborate on the practical application of Supervisory Training and Management Development.Why are Supervisory Training and Management Development important? The answer has been the subject of many textbooks. Dr. Ken Blanchard, author and consultant, addressed this issue concisely when he said that effective managers and organizations must do two things, ""get results and develop people"". lPeople development at IOC is best illustrated through its supervisory training and management development programs. For the past twenty-five years IOC has been recognized as an industry leader in the training field. Periodic studies have played their role in establishing and maintaining this distinction. For example, in 1974, the company decided to review and up-date all its training programs. At this time, it established its own Task Force on Training and this resulted in the development of many of our present programs. Today, Supervisory Training (i.e. for first and second level management) at the Carol Project in the Labrador City area consists of various programs including: New Foreman Induction, Foreman Entrance School, Basic Management Skills, Management II, and Effective Presentations."

Jan 1, 1983

By Glenn Adkins

This report characterizes pivoting joints in the structures of mining machinery and how the wear on the various components, i.e., pins, lugs, yokes and bushings, may affect the safety of mine personnel where these components are allowed to wear excessively before repair or replacement.

Jan 1, 1979

Remote sensing, in general, is the recording of light and heat from a planet's surface within a certain range of the electromagnetic spectrum. For the Earth, systems capable of this recording are the MultiSpectral Scanner (MSS) and SLAR. The former is the recording system used in satellite and will be discussed in the next section. SLAR stands for Side Looking Airborne Radar. This device sends invisible radar waves which illuminate the Earth's surface. The reflected waves are subsequently recorded as images. The system can operate through darkness and dense cloud cover, and is particularly suited for the study of geological structures at both large and small scale (Wayland 1976). Remote sensing techniques are now widely being made use of in mineral exploration, especially for those last remote 'sanctuaries' where geological data are meagre or non-existent. For places like Borneo, West Irian, the Amazon Basin etc. remote sensing, in the form of both satellite imagery and SLAR, is of considerable help, in fact more often than not the only help, to delineate geological provinces, geotectonic domains and meaningful lineaments. In the case of New Zealand, well made geological maps at scale 1:250 000 by the Geological Survey are available to the public and these provide useful preliminary grounds for the selection of target areas. However, even in this case LANDSAT imagery can be of aid as will be shown later.

Jan 1, 1977

By C. M. St. John

A series of analyses of possible mining excavations associated with the development of copper nickel deposits of the MINNAMAX site in Northeastern Minnesota is presented. Specific areas such as roof and pillar stability and excavution orientations are addressed. The majority of these analyses were conducted using a boundary element method but some cases were also analyzed using the finite element method. Comparable results were obtained using the two methods but the boundary element method required less data preparation time and computer run time. Results of the analyses, as well as indicating the capabilities of geotechnical numerical models, provide some insights into behavior around multiple excavations in jointed rock.

Jan 1, 1979

Changes in reductant and energy inputs which are required to adjust the slag composition in anilmenite smelter to a higher or lower FeO content are calculated. The calculated changes are based on the assumption that solidification equilibrium with the freeze lining constrains the slag composition to follow a eutectic groove in the TiO2-FeO-TiO1.5phase diagram. Calculated equilibrium conditions along the eutectic groove are presented, and form the basis of the calculations. The inputs of energy and carbon need to deviate strongly from the steady-state values to adjust the slag composition. The inputs required at any given time depend on the desired rate of change of the slag composition, and the current slag composition. The steady-state relationship of a change in energy input of 5 kWh corresponding to a 1 kg change in carbon input does also hold for the changed inputs during transient changes in FeO content. Keywords: Ilmenite smelting, freeze lining, solidification, eutectic

Jan 1, 2003

By X. S. Yuan

With the production increase of Oil Sand in Fort McMurray Alberta, more efficient tailings disposal has become a priority for Syncrude Canada Ltd. A lot of work on tailings research and development has been compiled to determine the most effective deposition to increase reclamation options, water re-use and thermal energy recovery. Efficient flocculation of fine oil sand tailings is the key technology for thickening. It was identified that flocculation of fine transition/marine ore tailings using a single flocculant was not effective. The thickener overflow contains 1-4% solids content compared with the target solids content of <0.5% obtained with Estuarine ore. As a result, novel processes for treatment of fine transition/marine ore tailings have been developed at Syncrude Bitumen Production Development since June 2004. While the conventional processes using a single flocculant, a single coagulation, or a coagulant-flocculant combination was ineffective for transition and marine ore tailings, the new processes including Coagulation-Flocculation-Coagulation (CFC), Flocculation-Coagulation (FC) and Flocculation-Coagulation-Flocculation (FCF) were acceptable options. The key components of these technologies consist of the recipe of chemicals and their adding sequence. With these technologies, almost all sub-micron clay minerals are aggregated together and settle as a whole, resulting in a clear supernatant of less than 0.1% solids.

Jan 1, 2006

By James S. Graham

Specifications for treated round wood piling are presented for the engineers consideration. Included in the text are background information, technical committees, Chellis, quality, treatment, static and dynamic stresses, accessories, and existing codes and standards. The specifications are also available using Word Perfect on 3.5 or 5.25 inch size disks provided by the National Timber Piling Council. Note: DFI recommended wording is wood, head, and toe, instead of timber, butt, and tip.

Jan 1, 1992

By Jamal Rostami, Richard Kastner, Ahmad Ramezanzadeh

Improving the accuracy of the performance prediction models for hard rock Tunnel Boring Machines (TBMs) is important in estimation of the schedule and cost of tunnelling in related projects. The effects of rock mass on performance of TBMs has been studied extensively, yet due to the complex nature of the process, impact of many parameters influencing machine advance rate are not very clear and there is still room for improvements. More accurate estimates can be obtained by better understanding of operating parameters in various geological conditions and can lead to matching machine specifications with job conditions, optimizing machine performance, and avoiding long delays and downtime for increased productivity. This paper will offer review of two case histories including Queens Water tunnel in New York and KCRC project in Hong Kong. The analysis of the available field data, including the geological back mapping and results of laboratory testing of rock mechanical properties, machine operational parameters and achieved rate of penetration will be presented. This includes statistical analysis of available field data to provide a better understanding of the influence of rock mass properties on performance of hard rock TBMs as well as related formulas to improve performance estimates.

Jan 1, 2005

By Gilberto Yanarico Apaza

"El presente texto señala las pautas necesarias para realizar una evaluación técnica integral de la influencia del collar de bolas para las operaciones de molienda, afectando al desgaste de los revestimientos de los molinos convencionales. Para la determinación del collar de bolas es necesario realizar los análisis granulométricos con la finalidad de obtener el F80 y el P80 de las muestras obtenidas en la alimentación y producto de los molinos, definir el índice de trabajo (Wi) y consumo de energía. Asimismo, se debe considerar el porcentaje de la velocidad crítica, las dimensiones de los molinos, la densidad de los medios de molienda (bolas), el porcentaje de la carga de bolas, las características geométricas de las bolas para molienda y el diámetro real de bolas, que influye de forma inversamente proporcional en la tasa específica del consumo observada."

Jul 1, 2015

By Gabriel Esterhuizen

Observations of pillar conditions in limestone mines showed that the presence of weak bands in the limestone can result in pillar damage at stresses that are lower than one would otherwise expect. The objective of this National Institute for Occupational Safety and Health study was to investigate the mechanism of failure caused by the presence of weak bands by using a series of numerical models based on realistic physical properties. The effect of the weak bands on pillar strength was also investigated by developing a series of pillar models with different width-to-height ratios and determining their strength by simulating a servo-controlled loading condition. The material properties of the bands and the limestone were varied and their effects on pillar strength were determined. Model results demonstrated failure development similar to the pillars observed in the field. The weak bands were seen to develop tensile stresses in the limestone as they extrude under increasing stress. The limestone fails in tension at a much lower stress than its expected uniaxial compressive strength. The results showed the load bearing capacity of the pillars can be reduced significantly by the presence of multiple thin weak bands. The degree of strength reduction is largely dependent on the compressive strength, the frictional resistance and the thickness of the weak bands. Single weak bands do not affect pillars as severely as multiple bands. However, the model results show that a single thick weak band, which comprises more than about 2 percent of the pillar height, can cause a significant reduction in pillar strength. The weakening effect of the bands become less severe as the pillar width-to-height ratio is increased. Field observation of spalling and failure associated with weak bands in limestone pillars show that the failure mechanism in the models resembles the observed failure. The model results provide insight into the important factors affecting pillar strength in the presence of weak banded materials.

Jan 1, 2007

By Sandin E. Phillipson

The Mine Safety and Health Administration?s Roof Control Division responded to a massive ground failure at an underground marble mine in northern Georgia. The ground failure occurred in a benched area that had been abandoned in the early 1990s. It involved the failure of an estimated 19 pillars, in conjunction with a massive roof fall of an undetermined extent that was at least 60 ft high. Pillars in the benched area had been mined nominally 40 x 40 feet to a height of 50 feet ft, with 40-ft mining widths, although it seems likely from measurements and accounts from mining personnel that pillars were even smaller than intended. Average overburden depth was 500 ft, and the rock mass was characterized by three sets of intersecting geological discontinuities that not only defined very blocky conditions that were conducive to pillar spalling and volume loss, but they were also adversely oriented in such a way as to cut diagonally through pillars at a high angle. The recently released S-Pillar software from NIOSH was used to determine pillar safety factors in the failure area and indicated that pillars were undersized for the conditions. S-Pillar was used to assess pillar stability in active areas to evaluate the likelihood of experiencing similar collapses in the future. S-Pillar correctly identified the pillars in the bench area as having been at risk for instability, in light of their ultimate failure. A two-dimensional finite element model was used to evaluate the possible stages of failure and to assess the likelihood of continued failure in the benched area that might affect more distal mine openings. Although stone mines are generally characterized as having more forgiving conditions than those found in softer sedimentary rocks, the failure shares some characteristics with domino-style massive pillar collapses experienced in coal and trona mines. First, the minimum dimension of the benched area approached 350 ft; second, the pillars defined by benching had small width-to-height ratios (0.8), and; third, the pillar failure area was slightly greater than 4 acres. The massive pillar collapse and associated roof fall illustrate the importance of incorporating pillars that have been properly sized for depth and for the final bench height. Furthermore, the designed dimensions must be adhered to during the actual mining process. Finally, the importance of understanding the geological conditions and their effect on the rock mass is critical.

Jan 1, 2012

Extraction of copper from a chalcopyrite concentrate by means of a cupric chloride leach is described. Initially the concentrate is mixed with sulphur in a 9: 1 ratio, and heated to 350-400&#176;C. This converts the chalcopyrite into more readily soluble sulphides, while the iron rejected from the chalcopyrite is transformed to pyrite, which is insoluble in the leach solution employed. A two-stage countercurrent leach using a leach solution of 1 M cupric chloride, 3.5 M sodium chloride, and 1 M hydrochloric acid extracts 98 per cent of the copper, if conducted at 105&#176;C. Iron extraction is relatively low, the mole ratio of iron to copper extracted being 0.17, compared to 1.0 for unreacted chalcopyrite. After dissolution, copper can be recovered by electrolysis, cupric chloride leach solution being regenerated at the anode.Electrolytic power requirement is low, being approximately 0.5 kWh per kg of copper. The sulphur and, most of the iron entering as feed are rejected from the process in the form of pyrite, which remains in the leach residue.

Jan 1, 1974

By J. A. Cruise

With the end of the official apartheid legislation in the early 1990s, South Africa was heralded as a non-racial country. However, racial awareness has been reintroduced into the country with the Affirmative Action and Black Economic Empowerment legislation. Gender and racial transformation are the current order of the day. All organizations are required to reflect in their make-up the demographics of the population as soon as possible. Scorecard shave been drawn up to measure the rate of transformation for gender and race in organizations. The mining industry in South Africa has been in the forefront of this transformation legislation and scorecards. This paper seeks to show the effect of gender and racial transformation on mining engineering education and professionalism by analysing the changing demographics of graduating mining students at both the South African universities offering a degree in mining engineering, the professional registration of mining engineers with the Engineering Council of South Africa (ECSA), and the membership of the Southern African Institute of Mining and Metallurgy (SAIMM), the vocational institute for mining engineers. It also demonstrates the absurdity of gender and racial quotas based solely on the demographics of the current population of the country. This paper shows the degree to which mining engineering has transformed in both gender and race.

Jan 1, 2011