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By W. N. Lacey, B. H. Sage

In recent years there has been an increase of interest in the flow of gases at relatively high pressures. Hydrodynamic calculation of the energy losses in the flow of gases in conduits, as well as through the porous solid materials constituting natural petroleum reservoirs, requires a knowledge of the viscosity of the fluid at the pressure and temperature involved. Although there are numerous publications concerning the absolute viscosity † of hydrocarbon gases at atmospheric pressure, there appears to be little information available relating to the effect of pressure upon the viscosity of these gases. Voge133 determined the viscosity of methane at 32° F. and atmospheric pressure. His measurements at 32° F. were later substantiated by the measurements of Rankine and Smith20 at 63° and 212° F. Ishida14 also reported values for the viscosity of methane at atmospheric pressure. Trautz and Kurz30 measured the viscosity of propane at atmospheric pressure, from 83° to 530°F., by the use of a short capillary tube. Rap-penecker2' determined the viscosity of gaseous isopentane at elevated temperatures. Day6 made an accurate investigation of the effect of pressure upon the viscosity of n-pentane and isopentane at pressures from 2 lb. per sq. in.‡ to the vapor pressure at 77° F. (approximately 9.8 and 13.3 lb. per sq. in., respectively). Earhart7 reported data upon the viscosity of several natural gases measured by the long capillary-tube method. The viscosity of air, at atmospheric pressure and 73.4° F., was measured by Harrington9 by the rotating-cylinder method. Kellstrom15 has rec,ently made an elaborate investigation of the viscosity of air at atmospheric pressure. The latter work is perhaps the most accurate investigation of the viscosity of a gas that has been made.

Jan 1, 1938

By R. A. Liddle

Intermitt'en'I'ly during the past 10 years showings of oil and gas in tests drilled in the eastern part of Texas have stimulated the search for production. Tests on the flanks of the long-known salt domes, principally Keechi and Butler, have found oil in small quantity in the Woodbine formation of the basal part of the Upper Cretacrous. In the central part of Cherokee County, Colliton et all in 1926, in their Clapp No. 2 found a good showing of 37" B6. oil at about 3500 ft. Several wells were drilled in 1926 and 1927 as a result of this showing. On Jan. 22, 1927, Humble Oil & Refining Co. wildcatting on Carey Lake salt dome, obtained commercial production in its Clark No. 1. This inaugurated intensive exploration both for salt domes and for other types of structure. As a result several new domes and a few promising structures of other types have been discovered. Development in East Texas durinG 1927 Carey Lake Dome Location.—On the Neches River in Anderson and Cherokree counties, 10 miles west of Jacksonville, Cherokec (lounty. (Fig. 1.) date of Discovery.—During 1925 geologisls of the Humble Oil & Refining Co. working in the Neches River valley discovered slight surface fracturexs, cratic dips, and slickensided clays and sands in green-sands of the Mount Selman formation north of Carey Lake. A number of core tests were drilled by the Humble Oil & Refining C'o. during 1925 and 1926, some more than 1500 ft. deep, to check their surface obsuvations of faulting, and the possibilities of a salt dome. On May 16, 1927, solid rock salt was reached at 2142ft. in the first deep test on the prospect. Surfacc Indications.—Surface indications of the Carey Lake dome, though not as evident as manifestations at the previously known domes of Palestine, Keechi, Butler, Grand Saline, Steen and Brooks, are more noticeable than on any of the domes discovered in 1927. F. E. Poulsen, of the Pure Oil Co., who examined the area before the deep tests were drilled, noted the alignment of erratic surface dips which suggested faulting, especially in conjunction with slickensiding, and the local deflec-

Jan 1, 1928

By AIME AIME

BECAUSE of its unequalled skill, your country in- creased its production until, in 1913, it produced 40 per cent. of the world's consumption of coal, iron ore, and cast iron; 45 per cent. of the steel; and 60 per cent. of the copper. Your industrial effort, in a general manner and your mining effort in particular, has been tremendous. In the general economy of the world, you occupy an incomparable position of power and action. All your curves of production, mineralogical, metallurgical, financial, commercial, have taken terrific trigonometrical tangents and you will easily under- stand the sorry position of your competitors. I must, therefore, pay a tribute of homage arid admiration to you all who, each in his sphere, have been the artisans of such prosperity and my earnest wish is that you continue in this way.

Jan 1, 1920

By Bradley Stoughton

FRom 1886 to 1889, approximately, Henry M. Howe was engaged most actively in preparing his Afetallugy of Sieei, which became the foundation for his leadership in the science of physical metallurgy of steel. During the same period, Hadfield was developing the first of the industrially-important alloy steels, and Riley was initiating the commercialization of nickel steel. Both of these alloys are treated briefly in Howe's book; indeed, he missed practically nothing of interest in all the steel literature preceding 1889. There had been many good books on steel before his, but none of the same character. His genius, like that of Aristotle and Francis Bacon, manifested itself in the painstaking collection of data, followed by their coordination and interpretation. Not only manganese and nickel steels were discussed, but several which most of us, with our tendency to overlook the past, are wont to regard as exclusively recent developments, such as: silicon, chrome, copper, tungsten, vanadium, titanium, chrome-tungsten and many other steels. But Howe never devoted much special attention, in his writings, to alloy steels; the science of the relations of iron and carbon offered field enough even for his capacity for constructive thought. And, today we find the science of alloy steels in much the same condition as was the metallurgy of steel before Howe wrote his first great book. Many, many important facts have been presented to the world, especially by Sir Robert Hadfield, James Riley, Henri le Chatelier, Kotaro Honda and his associates, Maunsel White, Harry Brearley, and a host of others. Several books have been devoted wholly or chiefly to alloy steels, such as those by Hibbard, Mars, Heyn and Wetzell, Grube, Burnham, Gillett and Mack, Billón, Brearley, Monypenny, Becker, Savoia, Sauveur, Guillet, Tammann, Guertler, Goerens, Guia, Wuest, Ledebur, Schenck, Aitchison, Osann, Guettier, Buchetti, Escard. The vast number of data on the subject are indicated by a bibliography' which was collected in preparing this address. It covers the years 1911 to

Jan 1, 1927

ASIDE from the John Fritz Medal, in which the Institute partici¬pates through its representation on the John Fritz Medal Board, the Institute itself has four awards it may make annually, as fol¬ lows the Robert W Hunt Medal and Prize, the J E. Johnson, Jr , Award, the James Douglas Medal, and the William Lawrence Saun¬ders Medal ROBERT W HUNT MEDAL AND PRIZE The partners of Robert W Hunt established a fund which was, presented to the Institute at a fitting ceremony on May 27, 1920, to establish an annual medal and a sum of money to be awarded tinder the following rules¬ 1 The award shall consist of two prizes first of a gold medal, second of a sum of money, a certificate to accompany each prize The money prize shall not be awarded to a member' over 40 years of age, but under unusual circumstances, both prizes may be allotted to one per son provided that he is not over 40 years of age In general it will be understood that the Committee shall award the money prize to the younger men, rather than the medal 2 The awards shall be made not oftener than once a year to that person or persons contributing to the Institute the best original paper or papers on non and steel The scope of the term "iron and steel" shall be determined by the sub-committee consideing the awards In general, papers dealing with the practical side of the subject have preference over those dealing with the theoretical side in recognition of the fact that Captain Hunt's main con¬ti ibutions to the industry have been in the improvement of production and quality of material

Jan 1, 1923

By W. G. Whildin

This paper will be confined to a discussion of the methods in use in the property of the Lehigh Coal and Navigation Co. in the Panther Creek valley.

Jan 1, 1915

By O. E., Kiessling

THE better control of production was made the topic for a special program of the annual meeting of the Institute last February. In the discussion at that meeting it was brought out that in many branches of the mineral industry (as in other industries), there was faulty industrial coordination. Those who were best informed by reason of their intimate connection with coal, copper, oil, iron, lead and zinc, and almost all other of the essential minerals pointed to a condition of chronic over-capacity, to the dissipating use of irreplaceable minerals, to an unstabilized price structure, and to over-stimulatecl production and the destruction of some mineral resources over and above what is thought to be the needs of prudent cur- rent consumption. The discussion went far enough to point out the existence of various problems, and the question then raised was "what can be done by way of self-coordination of industry?" by "production control from within?" or in other words, "how can the mineral industry protect its resources against waste and at the same time protect both the producer and consumer against loss from prices that are too low or too high?"

Jan 1, 1928

By Duncan MacVichie

The iron fields described here are located in the Iron Springs and Pinto mining districts, Iron County, Utah. This region is in southwestern Utah, about 260 miles south from Salt Lake City, and is reached by the Los Angeles & Salt Lake railroad of the Union Pacific system. The iron fields lie at an elevation of 5500 to 7500 ft. above sea level, and are essentially desert in character. They are covered with a light growth of sage brush, piñon pine, and scattered cedar. Weather conditions are unusually favorable for all-year mining operations, the winters being mild with little or no snow; and the summers not excessively hot, the temperature rarely rising to 100 during the day, while the nights are invariably cool. The iron-ore bearing area extends from the Iron Springs district to the Iron Mountain mining district, being approximately 25 miles long in a northeast-southwest direction, and from 1 to 3 miles wide in a northwest-southeast direction. In the Iron Springs and Pinto mining districts, the ore occurs at various points around three sides of Granite Mountain and Iron Mountain. This is readily understood by reference to Figs. 1-4. These mountains are composed of andesite, which has been forced up through the surrounding sedimentary formation, in the form of laccoliths. An extensive report on the geology of these districts was made by Leith and Harder,' who state: The three dominating geological features of the district are three large andesite laccoliths which constitute the Three Peaks, Granite Mountain, and Iron Mountain; lying in a northeast-southwest line across the area in question. Three unconformable sedimentary series, aggregating 4000 ft. in thickness, outcrop in successive rings around these laccoliths, dipping outward asymmetrically, very steeply at the contact, less steeply farther away. Still farther from the laccoliths, lava-flows 2000 ft. thick rest in nearly horizontal attitudes on the tilted sedimentary rocks. These general relations are modified by faulting. All of the rock formations of the district are more or less covered on the middle and lower slopes by unconsolidated and partly consolidated erosion debris, both aqueous and subaerial, which spreads out on the lower ground to make the deserts.

Jan 1, 1927

By C. E. Capes

A number of novel but increasingly-important methods of size enlargement in liquid systems are reviewed. These techniques use relatively strong bonding and specialized equipment to form dense and substantially permanent agglomerates directly from particles in liquid suspension. In addition to separation of particles from suspensions, these methods have other broad objectives, including the production of granular (often spherical) materials, displacement of suspending liquid from the product and the selective agglomeration of one or more components of a multi-particle mixture. The underlying principles of the methods discussed include agglomeration by immiscible liquid wetting and by polymeric flocculants. Other procedures to produce granular, free-flowing products based on dispersion and solidification in liquids are also noted briefly. Applications in a variety of fine particle systems are considered with emphasis on minerals and fuels beneficiation and on waste treatment.

Jan 1, 1980

JESSE L. JONES,* Pittsburgh, Pa. (written discussion?).-The most important criterion on which judgment of the quality of manganese bronze can be based is its freedom from lead. Not over 0.03 per cent. of lead should be present in a good grade of manganese bronze. While it is not questioned that manganese bronze with a high tensile strength and considerable ductility can be made .from materials that will give a lead content of possibly 2 to 3 per cent., there is no doubt that such material, while it may machine readily, will be found to withstand the impact test very poorly, and hence be unsuited for high-grade engineering work. When lead is present in considerable amounts, it forms in small pools in the alloy and the material has little strength at these points; in fact, such spots in the metal are equivalent to nicks in a test bar as far as their effect on tensile strength is concerned. A further objection to a high lead content is the ease with which it oxidizes and its consequent tendency to produce dross. A second characteristic of a high-grade manganese bronze is a low content of manganese. This should not exceed 0.05 per cent.; in fact, very many of the best grades of manganese bronze show, on analysis, only a trace of manganese or no manganese whatever. Manganese is a deoxidizer and its ready oxidation protects the other metals of the alloy; but if it is present in large amounts it will produce considerable manganese dioxide, which does not separate readily from the molten alloy and may produce black specks or drossy spots and render the obtaining of clean castings difficult. Aluminum should be present in a good grade of manganese bronze in only very small amounts. A content of 0.10 per cent. aluminum is ample. Larger amounts have a tendency to increase the shrinkage of the alloy, to give the ingots and castings a white, scruffy appearance, and to prevent the beautiful, golden, oxidization color characteristic of high-grade manganese bronze and a most excellent indication of quality. The work that the author of the paper has done is valuable from a con- servation standpoint, and it will supplement, in a marked degree, the advances that have been made by a number of manufacturers of manganese bronze in utilizing the turnings from this material. A number of firms have succeeded in making a very good grade of ingot metal from turnings and other light scrap, obtaining a tensile strength and elongation

Jan 4, 1919

By H. M. Roche

MAGNETITE mining and milling in the Eastern States was sharply curtailed in 1938, production showing a decrease of 36 per cent from 1936 and 57 per cent from 1937. Six mines, one in Pennsylvania, two in New York, and three in New Jersey were in operation, either part or full time, during the year. In recent years ten Eastern magnetite mines have been more or less active but since the World War the market for Eastern ores- has been spotty. The scrapping of Eastern merchant pig iron furnaces, imports of cheaply mined duty-free foreign ore, and high freight cost have been contributing factors.

Jan 1, 1939

Graham Macfarlane, Louisville, Ky. (communication to the Secretary*):—In the paper by S. Whinery under the above caption mention is made of the occurrence of Clinton iron-ore in Kentucky and Tennessee. I believe that this is really a ferruginous limestone in what the Tennessee Geological Survey calls the Fernvale formation. In Davidson and Sumner counties, Tennessee, this occurs at about the horizon stated by Mr. Whinery. The maximum thickness of the deposit is from 10 to 12 ft., but it averages between 6 and 8 ft., lying practically horizontal. The Red River Furnace Co., under my direction, opened a mine in the Fernvale " red rock" near Goodlettsville, Tenn., several years ago. When it was first found we assumed it to be Clinton ore, but the absence of the characteristic Clinton fossiliferous structure and other evidence satisfied us that it is really limestone saturated with iron oxide. I think the very low ratio of SiO2 and Al2o3 to iron content as compared with the usual ratio in the Clinton ore is also evidence in favor of its being the Fernvale. The Tennessee Geological Survey states that at outcrops where this ore has been leached it carries about 44 per cent. of iron; under cover, from 20 to 25 per cent. of iron and from 3 to 6 per cent. of silica, the remainder being chiefly calcium carbonate. Its phosphorus content is irregular and generally rather high for a foundry-iron mixture. Since it is more than self-fluxing, we have at times operated with a mixture of brown hematite and red ore with no limestone.

Jan 1, 1913

By W. Spencer Hutchinson

THE purpose of this account is to introduce to other engineers and geologists who use photography a means of interpreting topographic and geologic structure with the stereoscope. Anyone who finds this of sufficient interest to read it at all must cut out the pictures shown and have a good look at them through the stereoscope; there is no other way to appreciate what is meant. Most of us have been disappointed by the flatness of mountain pictures and by the lack of perspective in photographs taken to illustrate topographic and geo- logic features. The use of the stereoscopic principle was suggested by the work of the photographic division of the Air service during the war. Photographs of the battle line, taken from air planes, were mounted for stereoscopic study, with most remarkable development of topography, penetration of camouflage and, by the matching of pictures with a time interval between, sure revelation of new work by the enemy. Thus, two views taken from a plane flying at 10,000 ft., both of the same terrain but from different points, are mounted in proper relation and put into the stereoscope. If the distance between the two positions of the camera was 200 ft., the observer then sees the topographic and military features as though his eyes were 200ft. instead of 235 in. apart.. The result is startling in its revelation of features that are flat and unintelligible when viewed by the unaided eye or in a single photograph. The technic of the work, as developed during the war, was quite complex and

Jan 1, 1921

By M. T. Hepworth, W. B. Sample

HYDROGEN solubility and linear contraction measurements were made at constant temperature on an alloy of titanium of constant oxygen-to-titanium molal ratio but variable hydrogen content. A cylindrical specimen of titanium (0.25 by 1.6 in.) containing 0.75 at. pct 0 and less than 0.03 at. pct N was cast from a master button of iodide process titanium which had been alloyed with titanium dioxide. Four vacuum fusion analyses, which were made along the length of the cylinder after the hydrogen solubility studies were made, revealed a variation of oxygen content of less than 0.02 at. pct. The specimen was introduced into a quartz furnace tube, annealed and outgassedat 1050"~ for about 1 hr, and then held at 800" * 0.5" for about 30 hr, during which latter time experimental data were taken. The leak rate to the furnace chamber was not sufficient to contaminate the specimen during the run as determined by leak-rate studies and vacuum fusion analyses for oxygen and nitrogen before and after the runs. The furnace chamber was attached to a modified Sieverts apparatus used to introduce measured quantities of purified hydrogen to the specimen. A quartz pushrod transmitted changes in length of the specimen to a Chevenard dilatometer. The push-rod passed through a vacuum grease seal to the dilatometer which amplified motion of the rod by a factor of 319. During hydrogen addition, the pushrod did not contact the specimen. Measured quantities of hydrogen were added to the specimen and equilibrium hydrogen pressures recorded as a function of hydrogen content. The solubility data, which appear in Fig. 1, agree well with a separate investigation made with a different apparatus. The solubility limit of the hcp a phase appears as an abrupt discontinuity in slope at 3.4 at. pct H. The solubility plot has been extended as a dashed line at this discontinuity in order to emphasize the discontinuity. The hydrogen content at which bcc P appears is not clearly defined. An arrow indicates solubility data were taken upon hydrogen addition. Upon reaching the arbitrary maximum hydrogen content of the run, the quartz pushrod was pressed against the specimen in order to record the change in length with hydrogen removal. A pressure of about 100 g per sq cm was required to overcome the friction of the vacuum seal in order to obtain reproducible linear contraction data. The contraction ratio ~2/1", change in length divided by original length, was set equal to zero for the maximum hydrogen content. The relative contraction of the specimen was observed upon removal of hydrogen in the following manner. The system was opened to the pumps for a few seconds and an unknown quantity of hydrogen was removed. The system was then isolated from the pumps by closing a stopcock and allowed to return to equilibrium. When the temperature returned to 800°C, the pressure stabilized, and contraction ceased, measurements of contraction and pressure were made. The hydrogen content of the specimen was then deduced by measuring the equilibrium PIydrogen pressure and referring to the solubility plot. Linear contraction was then plotted against interpolated values of atomic percent hydrogen. The justification for this procedure is the established reversibility of the hydrogen equilibrium.' Uniaxial compression was assumed to have no effect on hydrogen pressure. The isothermal linear contraction data are plotted on Fig. 1. An arrow indicates data were taken upon removal of hydrogen. The solubility limits of the two phase a i /3 region can be identified by discontinuities ill slope of the dilatometric plot at 9.1 and 3.4 at. pct H, agreeing well with other studies.' Dashed extensions of the plots emphasize the discontinuities. Isothermal studies of expansion made upon hydrogen addition gave curves of much smaller slope and less pronounced discontinuities. A uniaxial compressive stress tends to accentuate volume changes in going from the more open bcc phase to the hcp phase.2 Incomplete data on ex-

Jan 1, 1962

By Clyde E. Williams

The purpose of this report is to supply the Coal Classification Committee' with information for use in the formulation of a system of classification of coals according to their uses. Consideration is given here only to the nonferrous metallurgical operations that consume relatively large amounts of coal or coke; i. e., the smelting of copper, lead, zinc and aluminum. For all of these uses, coal of certain definite qualities is desired. Geographical location, however, often determines whether these qualities can be specified. In some instances the preferred qualities must be specified, regardless of cost. In others, quality may be sacrificed for lower cost, although the best quality consistent with cost is usually the determining factor. These considerations will be outlined in the following discussion under the various uses, which, however, will illustrate the impracticability of preparing definite specifications for coal used in the majority of the nonferrous industries. Coal and Coke in Copper Metallurgy From the standpoint of coal consumption, copper smelting and refining operations are the most important of the nonferrous metallurgical uses of coal. As nickel ores treated in the United States and Canada are associated with copper, the first step in their recovery is really a copper-smelting operation; accordingly, the following considerations under copper smelting apply equally to nickel. Copper Smelting in Reverberatory Furnaces.—For a long time, rever-beratory copper-smelting furnaces were fired with lump coal burned on grates in a fire box. Later, lump coal was displaced by pulverized coal or oil burned directly in the smelting chamber. Recently, natural gas has been used in several plants, although producer gas was used for this purpose at Great Falls as early as 1903.2 Requirements for coal used in

Jan 1, 1932

ALABAMA America.-Foreman, J. T. Ashland.-Sturdevant, J, C. Altalla; Henderson, R. M. Bessemer.-Ball, E. M. Maschmeyer, W. L. McKenzie, W. C., Jr. Birmingham.-Abbott, C, E. Aldrich, T. H. Aldrich, T. H., Jr. Aufderhaar, H. C. Berg, H. A. Blair, C. S. Bush, M. W. Clark. G. H.

Jan 1, 1929

By C. A. Stetefeldt

In May and June, 1885, I was engaged in examining the goldores of Las Minas, in the State of Vera Cruz, Mexico, with a view of finding a cheap and efficient method for extracting the gold. The following minerals could be plainly seen in the ore : magnetite, pyrites of iron, pyrites of' copper, quartz, and garnet. Neither galena nor zinc-hlende mere visible, but the ore contained a trace of lead, and in some samples of ore from the Muertos mine, 1.19 per cent. of zinc mas found. Antimony and arsenic were not present. Native gold could scarcely be seen in specimens of' the ore, and it only appeared—mainly in extremely fine particles—after pulverizing and washing. Magnetite was in every instance the most prominent mineral, its quantity varying between 43 and 67 per cent. Determinations of copper and sulphur showed that from 3.5 to 7 per cent. pyrites of copper, and from 3 to 22 per cent. pyrites of iron were present. The gold-value of the ore varied between 0.3 oz. and 0.8 oz. per ton. I do not speak of specimens, but of average samples of large quantities of ore put through the battery. In ore that had been crushed through a No. 40 screen, the gold appeared, in part, as free gold, the rest being thoroughly mixed with the magnetite and pyrites, both minerals containing about the same percentage of gold. If this free gold was brought in contact with pure quicksilver it (lid not amalgamate readily, even if the quicksilver was charged with sodium amalgam.

Jan 1, 1886

By H. G. Turner

The coals mined in the area known as the anthracite fields of Pennsylvania have always been recognized commercially as anthracites. In the literature, however, some of these anthracites have been called semi-anthracites by various writers. The coals mined in Sullivan County, especially those from the Bernice field, have been recognized commercially both as anthracites and semi-anthracites. In the literature they have almost always been referred to as typical semianthracites, although Franklin Platt,1 in his report to the Pennsylvania Geological Survey, uses the terms semibituminous, semianthracite, and anthracite in describing them. The purpose of this paper is to endeavor to dispel the confusion of names used to describe these coals and to supply further information that will permit a logical and definite classification. Most of the confusion of the past has been due to the impossibility of securing enough fresh face samples from which to draw sound conclusions; some of it was due, no doubt, to lack of standard methods of analysis, and of course, to the ever-present lack of definition of boundaries from the standpoint of classification. Map Showing Lines of Equal Volatile Matter and Lines of Equal Specific Gravity As a foundation for this work the writer constructed a map showing lines of equal volatile matter and lines of equal specific gravity throughout the anthracite and semianthracite regions. The points on these lines were determined from a study of analyses of 214 face samples from 28 mines and composite analyses from 18 different breakers. These samples were collected through the joint efforts of the U. S. Bureau of Mines and the Anthracite Institute. The Bureau of Mines standard method of sampling was used in all cases. All analyses were made by the Bureau of Mines and are used here with its permission. The

Jan 1, 1934

By Richard Ageton

SALT bodies in the form of rolls, horses (sometimes called horsebacks), folds, wants and pinches1 have been encountered while driving entries and mining out rooms during the development of the potash mines in New Mexico. Superficially these sporadic salt occurrences appear to be much alike, but closer examination reveals individual characteristics, and after four years of observation it seems possible to divide them into three general groups that may tentatively be called "depositional," "erosional," and "structural." The data collected are not yet sufficient to permit forecasts of their probable location, so that the annoyance of having to mine salt instead of potash could be avoided or lessened. However, the information so far available appears to throw some light on the occurrence of the sylvinite2 bed now being mined, and it is as a progress report that the writer presents the results of his observations. The mines of the United States Potash Co. and the Potash Company of America are about 20 miles northeast of Carlsbad, in Eddy County, N. M. They are on the southwestern flank of the Permian salt basin, which underlies western Texas, Oklahoma and Kansas, south-central Nebraska, southeastern Colorado and eastern New Mexico. The cuttings from many oil wells and the cores from the potash tests drilled in this basin indicate that this salt series approached its greatest thick-ness (about 4000 ft.) in the southeastern part of New Mexico and the adjoining portions of Texas, and that the most advanced stages of

Jan 1, 1936

By Thomas Cox

THIS paper makes no claim to any new idea; it simply reviews the Treasury Department Regulations pertaining to the practical application of depreciation and depletion and other allowances governing taxation of oil and gas properties. Other methods may be existent, but as they may not conform to the legal status they must be discarded. In complying with the present laws governing the, industry with regard to taxation and the allowable deductions therefrom, the following considerations are essential: Depletion, depreciation, amortization, other allowances, and items not deductible. It is definitely understood that depletion is the loss or exhaustion sustained in the continuous operating of an oil and gas property, and that each unit of oil or gas taken out reduces the value of the property until its final exhaustion. Depletion applies only to the natural deposits of oil and gas due to their-removal in the course of exploitation of any property. Depreciation is defined to cover the waste of assets due to exhaustion, wear and tear, and obsolescence of the physical property, and is separate and distinct from depletion; its allowance is that amount which should be set aside for the taxable year in such sums as for the useful life of ,the property will suffice to repay its original cost-or its value as of Mar: 1, 1913, if acquired by the taxpayer before that date-less the salvage value at the end of such useful life. Amortization is allowed for such facilities as were built or acquired on or after Apr. 6, 1917, for the production of articles contributing to the prosecution of the war and, in the case of vessels, those built and acquired after that date. The amount to be extinguished, in general, is the excess of the unextinguished or unrecovered cost of the property over its maximum value under stable .post-war conditions.

Jan 9, 1920