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By M. L. Holzworth, Philip R. Sperry, Paul A. Beck

INTRODUCTION THE basic work of Z. Jeffries1,2,3 has long ago established the main features of grain growth in the presence of a dispersed second phase. Working with sintered specimens of initially fine grained tungsten, to which various amounts of thoria have been added, Jeffries found that grain growth was inhabited, that is, practically prevented, up to a certain annealing temperature. When this temperature, which increased with the thoria content, was exceeded, extremely large grains developed abruptly from the fine grained matrix. Such a "coarsening temperature" was later found by Gross mann13,14 in certain types of steel, while Bain showed" that in other steels grain growth was gradual, without inhibition and abrupt coarsening. Later work16,17,18,19,21 demonstrated the connection between coarsening and aluminum additions. The viewpoint that the direct cause of inhibition and coarsening in aluminum killed steels is a fine dispersion of aluminum oxide21 appears to be held quite generally, although some doubts have been voiced even very recently.20 In steels with Ti additions the titanium carbide phase is considered responsible for the inhibition effects found.20 The coarsening temperature increases, with the titanium content. That coarsening may occur, as a result of certain heat treatments, even in low carbon rimmed sheet steel, was shown by Samuels,22 He also detected coarsening in a steel ingot of similar composition, after giving it the same heat treatment as that used by him for the sheet material, In this instance the identity of the inhibiting phase has not been determined, However, Tangerding found 23 that even the few small carbide particles, which occur in carbonyl iron, have a very marked inhibitive effect. As a result of an oxidizing anneal at 850°C, large grains begin to form at the surface of the carbonyl iron specimen, and gradually grow inward as the subsurface oxidation of the carbide particles progresses and eliminates the obstruction, The carbide particles can be removed also by annealing in hydrogen, with similar results. But if the oxidizing anneal of 10 hr at 850°C in air, is followed by annealing in hydrogen for 75 hr at the same temperature, grain growth is more spectacular; usually the whole specimen is transformed into a single crystal (approx. 1,5 cm X 5 cm). The reversed procedure, that is, hydrogen annealing followed by oxidizing annealing leads to smaller grains. Tangerding arrived at the logical conclusion that there must have been in his specimens some additional obstruction to grain growth resulting from a minor impurity, other than carbon. It seems likely that this obstruction was caused by an oxide formed during the oxidizing anneal and gradually reduced during the subsequent hydrogen-annealing. Other instances of grain growth inhibition of varying severity, associated with a dispersed second phase, have been described by several authors. Notable examples: lead with 0.06 pct Cu or Ni,24 cartridge brass with 0.12 pct Cr,25 or with up to 0.15

Jan 1, 1948

By Joseph Daniels

The Fritz Engineering Laboratory was built under the direction of John Fritz, and presented by him to the University. A view of the building, looking east, is shown in Fig. 1. The building was started in 1909, and completed in 1910, although all of the equipment was not placed until later. Mr. Fritz gave his personal attention to the details of construction and equipment, and it was his custom to drive over every day to the University from his home in Bethlehem and spend some hours watching the work, offering suggestions, making changes, and planning new work. The result is a building and an equipment which embody his practical ideas. The laboratory structure is of the steel mill-building type, of light-colored brick, 91 by 114 ft., of which a section is shown in Fig. 2 and the floor-plan in Fig. 3. The steel frame carries the roof and traveling crane-way. Ample light has been provided by numerous windows in the side and end walls, in the clerestory, and by a skylight 84 ft. long and 9 ft. wide in the north roof. The main aisle of the building is 49 ft. 2 in. between centers of crane-columns, and has a clear height of 40 ft. The remainder of the width is taken up by two side aisles, 18 ft. high. The laboratory consists of four sections: (1) A general testing-section containing the testing-machinery, a small machine shop, and an office; (2) a cement-testing room; (3) a room for making and storing concrete test-specimens; (4) a hydraulic section.

Jan 1, 1912

By Charles Barrett

THE copper-silver system presents several points of special interest in the study of segregate structures. The system is simple eutectic, with limited solid solutions terminal with the pure component metals. The extent of solid solubility decreases with decreasing temperature for both the copper-rich and the silver-rich alloys, thus offering a possi-bility for the formation of Widmanstätten figures and also a possibility for aging after quenching. In contrast to the structures studied previ-ously the structures in this system are unique in their; origin, for one terminal solid solution will precipitate the other, and ice versa. In most of the other systems for which crystallographic data on the precipi-tation (or transformation) process are available, either intermetallic compounds or intermediate phases partake in the decomposition process; the absence of such phases thus distinguishes this system. The lattice structures of the two solid solutions are identical in type, differing in lattice spacing by approximately 10 per cent; because of this it seems difficult if not impossible to predict on the basis of present theory either the outward form of the precipitate or the lattice orientation relationships between matrix and precipitate. The eutectic temperature in the copper-silver system1 is 779°C. At this temperature copper -dissolves 4.3 atomic per cent (7.0 weight per

Jan 1, 1935

By Arthur R. Still, Paul Gilmour

The ore deposit of the Iron King mine occurs in a group of steeply-dipping metamorphosed eugeosynclinal volcanic and sedimentary rocks of Precambrian age. Within this sequence, the ore deposit lies at the contact of a unit made up of rhyolitic tuff and interbedded andesite and a structurally underlying series consisting of andesitic tuffs, minor rhyolitic tuffs, and argillaceous sediments. Field evidence suggests that these rocks have been overturned. The ore deposit is made up of a series of overlapping, conformable or bodies consisting of massive pyrite and associated lenses of massive quartz. These contain recoverable amounts of gold, silver, lead, zinc, and copper. A parallel zone of copper mineralization occurs within the hanging-wall rocks. The deposit is considered to belong to a large and important group characterized by mineralogical composition and the lithology and structural type of the host rocks. Evidence regarding the origin of the deposit is reviewed, and it is concluded that the ore bodies were formed through the agency of volcanic hot springs on, or near, a submarine surface of deposition

Jan 1, 1968

By Henry Wurtz

Jan 1, 1880

By W. C. PAGE

ALL mine ore here must be concentrated before shipment, which involves selective flotation. Three products are made: lead, zinc, and pyrite concentrates. The equipment and practice are so well outlined in the accompanying flow sheet that only a few amplifying remarks are necessary. After crushing at the mine to approximately 4 in., the ore is carried by aerial tram about 4 1/2, mi. to the mill. From 1800 to 2000 metric tons per day, excluding Sundays, is thus transported. At the mill, the buckets are hand-tipped into the bins. After crushing to pass a ¼ -in. square opening, the ore may be stored in reserve crushed-ore bins or ball-mill feed bins as desired. Total bin capacity at the mill is about 4000 metric tons. The concentrator is arranged in three independent grinding sections, each fed from its own storage bin. Grinding operations follow standard practice, with ball mills in single-stage closed circuit with classifiers, the overflow from which is delivered to the lead circuit rougher flotation machines,

Jan 1, 1936

By W. C. Clark, J. B. Schloen

Two papers have been written, previously concerning operations at the Montreal East plant of Canadian Copper Refiners Limited. The first one,' written in 1932, described silver-refinery operations at the time for producing silver and gold bullion from tankhouse anode slimes; the second,Z published in 1933, consisted of a description of the entire plant. Since publication of these papers the refinery has become the world's largest producer of refined selenium. The first selenium was produced in August 1934. Tellurium production on a commercial scale followed in October 1935. This paper will deal with selenium and tellurium production and also with present operations in the silver refinery. Blister cakes from Hudson Bay Mining and Smelting Co., Flin Flon, Manitoba, and commercial anodes from Noranda Mines Limited, Noranda, Quebec, are refined at Montreal East. Both these bullions have unusually high gold, selenium and tellurium content. The average assay of raw slimes produced from domestic and Noranda anodes is about 40 per cent Cu, 3600 oz. per ton Ag, 800 ox. per ton Au, 22 per cent Se and 3.7 per cent Te. Early Silver-refinery Operations From the start of operations in 1931 until July 1934, the raw slimes were oxidiae-roasted at 700' F. in a Nichols-Herreshoff furnace, acid-leached with tankhouse discarded foul electrolyte (20 per cent HzSOa), filtered and charged directly to the dor6 furnace for refining to dore metal. This is the customary method for treating tankhouse anode slimes but was not suitable at the Montreal East plant because of the high selenium and tellurium content of our slimes. In the acid-leaching process about 50 per cent of the selenium and tellurium in the roasted slimes was dissolved in the electrolyte. These elements were recovered with the copper as a sludge in a small electrolytic

Jan 1, 1944

By William E. Greenawalt

IN these days of special legislation for the benefit of various industries one might well consider one branch of human endeavor intimately associated with engineering-that of patents and patent litigation. It is estimated that 85 per cent of all industries in the United States are based directly or indirectly on patents. Most inventors are engineers, and most patent litigation pertains to the engineering industries. It is fitting, therefore, that engineers should be vitally interested in discussing patent affairs, particularly as inventors are not a professional group, and invention is mostly a transitory phase incident to the development of specific industrial problems.

Jan 1, 1937

By J. M. Steininger

The mechanism of flotation of sphalerite with sulthydryl compounds of different acidities has been interpreted in terms of chemisorption of unionized collector molecules on hydroxylated zinc surface sites. At a constant collector concentration of 1.5 x 10 -4 M, the upper pH limit of flotation has been found to be directly and closely related to the negative logarithm of the collector acidity constant, pKa The experimental results indicate that flotation is prevented when about 95% of the collector is ionized. At low pH, collector adsorption decreases because of the reduction in number of hydroxylated zinc surface sites. These two effects explain why sphalerite does not float with the more acidic sulfhydryl compounds. Typical anionic collectors for sulfide minerals are short chain xanthates or dithiophosphates which are nearly completely ionized in the generally alka- line flotation circuits.1,2 Flotation mechanisms have therefore been usually interpreted in terms of ionic collector adsorption and competition with ionic depressants of the same sign as the collector. A few attempts have been made, however, to consider adsorption of neutral collector molecules. Contact angle measurements obtained by Wark and cox3 have been interpreted by Cook and Nixon4 as representing adsorption of the free acid molecules on sulfide minerals such as pyrite, galena, chalcopyrite, and sphalerite. Cook and Nixon tried to show that the free acid concentration of the collector was substantially constant along the curves relating collector addition and minimum pH for bubble adherence. However, in a review of the subject,5 Sutherland presented new data on the flotation of pyrite with mercaptobenzothiazole which did not support the hypothesis of constant concentration of either collector ions or collector free molecules. He further showed that, with the assumption of constant occupation of surface sites, both theories lead to relations between pH and collector addition having similar mathematical expressions. In fact, with the more likely assumption of variable occupation of surface sites which results in more complex relationships, it appears impossible to

Jan 1, 1968

By MARIUS R. CIMPBELL, Edward W. Parker

DESCRIPTION. ACCORDING to the estimates prepared by the U. S. Geological Survey, the area underlain by workable coal-beds in the United States is 496,776 sq. miles. Of this total area, 480 sq. miles contain the entire anthracite coal-fields of Pennsylvania. The bituminous coal-fields are estimated to be contained in areas aggregating 250,051 sq. miles. The grade of coal between bituminous and lignite, and which is designated by the Geological Survey as " sub-bituminous," is estimated to be contained within areas aggregating 97,636 sq. miles, while the areas containing lignite aggregate 148,609 sq. miles. The coal-fields are divided, for the sake of convenience in classification, into six main provinces, as follows: 1. The Eastern. Province, containing the anthracite coal-fields of Pennsylvania and the bituminous coal-fields of the Appalachian region-namely, those of western Pennsylvania, Ohio, Virginia, West Virginia, Kentucky, Tennessee, Georgia, Alabama, and small outlying areas in North Carolina. 2. The Interior .Province, containing the bituminous coal-producing regions of Michigan, Illinois, Indiana, western Kentucky, Iowa, Kansas, Missouri, Oklahoma, Arkansas, and Texas. 3. The Gulf Province, containing the lignite-areas of Alabama, Mississippi, Louisiana, Arkansas, and Texas. 4. The Northern or Great Plains Province, containing the lignite and sub-bituminous areas of North and South Dakota, eastern Montana, and northeastern Wyoming. 5. The Rocky Mountain Province, containing the bituminous and sub-bituminous areas of western Montana and western Wyoming, Colorado, Utah, and New Mexico. 6. The Pacific Coast Province, containing-the areas of Washington, Oregon, and California.

Apr 1, 1909

Jan 1, 1925

By Louis D. Huntoon

(New Haven Meeting, February, 1909.) THE Hammond Mining and Metallurgical Laboratory is the gift of Prof. John Hays Hammond to the Sheffield Scientific School of Yale University. Professor Hammond was graduated from this school in the class of 1876, and has always shown great interest in its welfare and progress. In 1903, he offered to build and equip for it a mining and metallurgical laboratory. This offer was gratefully accepted by the trustees; and in October of the same year the architect, W. Gedney Beatty, and the writer were employed to draw up plans for the building, which is the largest of its kind in this country. The Treasurer's report shows the total gift of Professor Hammond, including land, building, and equipment, to have been $128,741.53. This does not include $5,000 given by Professor Hammond to defray incidental expenses. The detailed cost of the machinery and installation, included in the above sum, is as follows: Machinery, $9,846.00 Pipe and fittings, 925.05 Hangers, shafting, pulleys, belts, etc., . 357.83 Steel-work, tanks, launders, etc., . 272.19 Screens for sizing ore, 411.37 Lumber, 1,896.36 General Supplies Hardware, . $135.96 Tools, 263.66 Paints, . 04.63 Electric and incidental, . 439.57 - 1,043.82 Machine-shop material, 259.44 Labor, 722.29 - 981.73

Mar 1, 1909

By Raymond C. Boettner

The present work had for its purpose: 1) the identification of crack nucleation sites in AISI 4340, quenched to martensite and tempered over a range of 'temperatures; and 2) the comparison of fatigue processes in AISI 4340 with processes observed previously in pure metals From constant def1ection-bending fatigue tests, martensite boundaries were identified as the favored crack nucleation sites in quenched and tempered AISI 4340. It, also, was concluded that the fatigue processes operating- in this lous-alloy steel were similar to Processes observed in pure tnetals. ALTHOUGH much engineering data has been accumulated on the fatigue properties of quenched and tempered martensitic steels,' fatigue as a process is not as well understood in martensite as it is in pure metals.' Important features of the fatigue process, such as the identity of the nucleation sites, have not been determined in the commercially important high-strength low-alloy structural steels. The present work had for its purpose: 1) the identification of crack nucleation sites in a low-alloy steel, i.e., AISI 4340, which had been quenched to martensite and tempered over a range of temperatures; and 2) the comparison of fatigue processes in the AISI 4340 with processes observed previously in pure metals. This comparison of the fatigue processes in the different tempers was restricted to the high-strain low-cycle part of the S-N curve. Under these test conditions, previous work on a number of metals has shown that a large number of cracks are nucleated in less than 30 pct of the fatigue life.3 Furthermore, crack nucleation sites are not restricted to inclusions but are also associated with intrinsic structural characteristics of the metal. MATERIAL A 20-lb ingot of vacuum-melted AISI 4340 (for composition see Table I) was hot-rolled to 1-in.-diam rod and then cold-rolled to a 1-in.-wide strip, 0.08 in. thick. Fatigue specimens, see insert of Fig. 1, were machined from the strip with the long dimension parallel to the rolling direction. m this orientation, the stringers of 1 to 2 p inclusions present in the sheet lay parallel to the stress axis in the specimens. The specimens were austenitited at 2050°F in order to obtain a large prior austenite grain size, i.e., 2 mm, which facilitated the subsequent identification of the prior austenite boundaries. A helium atmosphere was used to minimize decarburization. After austenitiza-tion at 2050°F, the specimens were transferred to a 1450°F furnace so that specimen distortion was held to a minimum in the subsequent oil quench. Previous work4 indicated that refrigeration in liquid nitrogen prior to tempering reduced the percentage of retained austenite in the quenched specimens to less than 5 pct. Tempering was carried out in air over the temperature interval of 200°to 800°F to produce a range of mechanical properties, Table I. The preparation of the fatigue specimen was completed by grinding about 0.005 in. from each surface and electropolishing in a chrome trioxide-acetic acid solution for 30 min. Examination of etched cross sections of specimens prepared in this fashion showed the foregoing specimen preparation to be adequate for the removal of the decarburized layer present after the heat treatment. Transmission electron microscopy showed that the as-quenched microstructure of this alloy consisted of a mixture of martensite plates containing either a high density of dislocations or microtwins. Previous work5'6 indicated that in the course of oil quenching autotem-pering resulted in the formation of E carbide on the martensite and microtwin boundaries. Tempering for 2 hr at temperatures up to about 400°F resulted in further precipitation of the E carbide. Finally, at about 400°F, cementite began to replace the E carbide on the martensite and microtwin boundaries in addition to forming a Widmanstatten structure within the plate matrix. EXPERIMENTAL S-N curves were obtained using electropolished specimens cycled at 1800 cpm as cantilever beams in fully reversed bending at selected constant deflections. The deflections were translated into surface strains by means of a calibration curve obtained through the use of strain gages. An argon atmosphere was used to minimize environmental effects. To investigate the development of fatigue slip bands, the specimens of the different tempers were unidirec-tionally bent to a surface strain of 0.005 to 0.007, photographed to record the location and appearance of slip bands so introduced, and then cycled to failure

Jan 1, 1968

By Henry Wurtz

HERACLITUS, a sage of antiquity, called the dark philosopher, who refused a throne, preferring a hermit's cell, propounded, twenty-four centuries since, the maxim : [ ] War (or strife) engenders all things. This, though probably intended by Heraclitus to apply especially to the internal forces of nature, is often said, with equal reason, of the affairs of men. Controversial strife, whether fortunately or unfortunately, is a crucible through which all new discoveries in science, and all technical applications of science must pass-a test which they must all endure before they can become so vitalized as to germinate, so to speak, take root in the human mind, grow tip, and overspread the earth. The greater the number and the power of the elements arrayed against such a growth, and of the influences hostile thereto, the greater should be the inherent vitality of the germ, the more strenuous, skilful, and persistent its cultivators and upholders. During the decade last past we have had, in spite of the severe stringency of the times, an active growth of this kind in progress, whose prospective importance it would now be difficult to overrate. This is the movement which has for its motive the idea that, generally speaking, fuel should be gaseous in form, and which has for its goal the introduction into general public use of gaseous products, made by cheap and rapid processes and on a gigantic scale, distributed throughout our cities and towns in distribution-systems which shall be proportionately gigantic, and sold at prices which will bring such fuel within the means of the poorest householders. Personally, for ten years past, the writer has never failed, on occasions public or private, to urge his belief that the realization of this idea, deemed by him a certainty of the future, will bring about

Jan 1, 1880

By R. C. de Lange

An improved replica technique is developed for a nondestructive study of the nucleation and growth of fatigue cracks. Three different growth stages of a fatigue crack were observed. An initial stage of high growth rate is followed by a long period of very slow growth, until finally a third period of high growth rate leads to fracture. THE metal-fatigue process is of a very complex nature. The experimental approach towards fatigue is susceptible to many minor influences which, together with the unavoidable scatter in testing results, makes the interpretation a matter of extreme care. The generally accepted fact that, in a homogeneous material, the fatigue cracks start at a free surface indicates that surface studies may contri-but in an essential way to a better understanding of the fatigue mechanisms. Indeed metallographic observations of the fatigue phenomena have been very fruitful in the last decade. The study of extrusions, intrusions, and persistent slip bands has contributed much to the present knowledge of the early processes in fatigue.' The drawback of the current metallographic techniques lies in the fact, however, that either observations of fatigue phenomena had to be made in a destructive way after an only partly executed test or a sequence of observations on the same test bar was only possible on notched specimens.2 4 In both cases an uncertainty exists as to the nucleation and growth of the fatigue crack in an unnotched test bar, where the crack can start at any place of a large area and develops in a test bar, which is macroscopically

Jan 1, 1964

By J. HUNER

Twenty-four new fields were found in Louisiana during 1945. Of this number 15 were oil fields, eight were gas condensate, and one a dry gas field. None of these fields, with the exception of West Delhi, is as yet of any great consequence. The Weeks Island field in Iberia Parish may eventually develop into a considerable reserve.

Jan 1, 1946

September 1 to 6, 1918 COMMITTEE IN CHARGE Spencer Penrose, Chairman. George M. Taylor, Vice-Chairman. A. E. Carlton, Chairman. Finance Committee J. Dawson Hawkins, Secretary DENVER COLORADO SPRINGS CRIPPLE CREEK Finance Finance Thomas B. Crowe T. B. Stearns A. E. Canton , E. P. Arthur, Jr. Richard A. Parker Spencer Penrose N. S. Greensfelder T. B. Burbridge George M. Taylor A. E. Carlton. A. L. Blomfield, Treasurer B. F. Hill Arrangement I F. G. Willis Dave G. Miller Registration Norris E. Eads Frank Bulkley Loren C. Lennox 1V. E. Ryan Geo. E. Collins Horace F. Lunt Fred Jones .1. M. Tippett F. D. Smale Entertainment J. H. Haynes F. H. Bostwick Arrangement and Entertainment L. W. Lennox F. E. Shepard George M. Taylor A. L. Blomfield M. R.. Valentine Howland Bancroft J. D. Hawkins Thomas B. Crowe B. P. Morse A. E. Carlton E. P. Arthur J. G. Perry G. H. Clevenger Etienne A. Ritter Ladies Ladies , PUEBLO Mrs. T. B. Stearns, Mrs. C. M. Taylor, Mrs. C. H. Clevenger J. F. Welborn Chairman. Chairman H. B. Carpenter Mrs. C. Loughridge Mrs. S.-Penrose Mrs. A. E. Carlton L. B. Eames Mrs. H. Bancroft Mrs. J. D. Hawkins Mrs. A. L. Blomfield F. Robinson Mrs. G. Bancroft Mrs. L. C. Lennox Mrs. J. M. Tippett . Mrs. W. D. Leonard Mrs. H. F. Lunt -Mrs. E. C. van Diest Mrs. C. Chase Mrs. E. A. Ritter Mrs. AV. Strieby Mrs. F. H. Bostwick Mrs. L. S. Harner Mrs. C. L. Bailey Mrs. F. Bulkley Miss F. Dickerman Mrs. E. P. Shove Mrs. C. L. Tutt Mrs. F. C. Peck Mrs. F. D. Pastorius

Jan 10, 1918

By Morris Cohen

IT has been known for several years that in certain age-hardenable alloys precipitation of finely divided particles occurs simultaneously with the changes in physical properties; while, in other alloys, these changes take place prior to, or without any, precipitation. . The silver-copper alloys are generally considered to be the classical example of the first group, and the aluminum-copper alloys (duralumin) are typical of the second group. The two types of aging are explained by the precipitation theory and the knot theory respectively. ? It is well recognized now that these theories do not conflict with each other; the one used for a given aging system depends upon which way the alloy in question happens to age-harden. However, previous work on the aluminum-copper alloys1,2 has shown that if the aging temperature is raised sufficiently the hardening will be accompanied by actual precipitation. In fact, it is quite probable that all of the so-called knot-hardening alloys will harden by precipitation at elevated temperatures. Therefore, a combination of the knot and precip-itation theories is necessary to give a complete picture of the age-harden-ing of these alloys, and indicates that knot formation and precipitation are not independent processes. To test the generality of this concept, it is necessary to show that the alloys that commonly harden by precipitation will harden prior to precip¬itation if the aging temperature is sufficiently lowered. For this reason, it would be well to carefully re-examine the aging characteristics of the silver-copper alloys at aging temperatures somewhat below those used by previous investigators. If hardening can be detected prior to precipi¬tation in these alloys, it will lend great weight to the idea that knot forma-

Jan 1, 1936

By Charles W. Bloomquist

The profitability of miscible flooding in a hypothetical target oilfield is examined. The major costs, including Windfall Prof it Tax, are identified and their re1ative importance are discussed. The sensitivity of profit to important physical and economic variables is evaluated and discussed, including variance in oil recovery, oil price, injectant requirements, injectant cost, and capital requirements. Economic sensitivities to important development and operating decisions such as timing, Spacing, Slug size, and gas recycling are also analyzed. The Windfall Profit Tax (WPT) as it applies to gas miscible EOR projects is reviewed. The effect of WPT on each of the various project cases is analyzed and the effect of reduced WPT on remaining production from existing operations is evaluated. Tax implications are compared for integrated vs. "independent" controlled projects and the alternative of expensing vs. capitalizing tertiary injectants is also evaluated. The impact of the Net Income Limitation in reducing WPT. during early and late project life is determined and discussed.

Jan 1, 1982

By Randall L. Neal

This paper discusses the impact of taxes at the state and federal level on typical on-shore oil and gas exploration economics in the USA. Taxes considered are the windfall profits excise tax, state production (or severance) taxes, state income tax, and federal income tax. Also considered will be market prices for oil and gas in the USA. The effect of government take as a percent of revenue, on rate of return, discounted Payout, and discounted cumulative cash flow is shown on the attached tables. The conclusion drawn is that tax laws, while rarely the most important factor to be considered when drilling a well, can have significant impact on the profitability of oil and gas ventures, and should be considered when determining where to drill. Hypothetical exploration wells were analyzed for the impact of tax laws on project profitability. The results of this study show that when factors other than taxes are postulated to be the same (such as producing rate, capital, operating costs, and prices), cash flow can vary by as much as 68% due to the differences in the tax laws. Other significant findings for the cases studied include: (a) that discounted payout varied by as much as 1.8 years, (b) that rate of return differed by up to 67% and (c) the total tax rate as a percentage of revenue had a maximum variance of 33%.

Jan 1, 1982