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By Paul H. Johnson

Chemical mining may be defined as the use of chemicals in extracting metal values from in situ broken or unbroken ores within a mine. The present means for the generation and regeneration of sulfuric acid or sulfuric-ferric sulfate solutions are inadequate for most applications. This report describes a pressure oxidation process for the generation and regeneration of these solutions from pyrites and spent iron sulfate leach liquors. While recent mining developments such as solution injection, caving, and conventional and nuclear blasting, have provided new and better means for the per-colation of leach solutions through rock masses, little has been done to reduce cost and improve the quality of the leach solutions that are required. A leach solution for chemical mining should meet certain requirements. It should be 1) inexpensive on either a small or large tonnage basis, 2) capable of selectively leaching the desired ore minerals contained in a particular ore, 3) of the proper strength or quality to do the job of leaching in an underground environment and 4) amendable to simple and inexpensive metal recovery steps. It is also important that the capital investment be low for the solution generation and; or regeneration plant.

Jan 8, 1965

By Raymond Ward

IN the past few years several papers have appeared dealing with different aspects of the oxidation of dilute alloys, especially with respect to the formation of internal oxides or subscales. Subscale has been defined1 as that layer or zone of oxide particles precipitated in a matrix of metallic metal in which the oxide particles are dispersed uniformly and occur by diffusion of the oxygen inward from the metal surface. Alloys composed of a solvent metal more noble than the alloying elements are subject to subscaling or internal oxidation. In these alloys the solute must be present in such quantities that if the alloy is exposed to an oxidizing atmosphere at elevated temperatures, the rate of diffusion of the oxygen into the metal will be greater than the rate of diffusion of the solute outward. There is a composition range of the iron-silicon system that falls into this classification. Knowledge of the nature and rates of oxidation of iron-silicon alloys is of great commercial importance, but very little information of this nature is available. Darken2 recently has made calculations to show the limits of concentration of silicon for which subscales are produced in iron-silicon alloys; however, the main thesis of his paper was to analyze and to explain the already existing data. The purpose of this paper is to present the effect of com position, temperature, time, and atmosphere on the type of scale-metal layer obtained and to give some qualitative indication of the effect of these variables on the rates of oxidation. Since this paper is a study of silicon steels that are available commercially, extremely low-silicon and high-silicon alloys are not included. EXPERIMENTAL PROCEDURE The alloys used in the experiment were taken from heats of silicon steel that ranged in analysis from 0.70 to 5.8 per cent silicon. This composition range takes in most of the commercial silicon steels. In Table I are listed the compositions of alloys used. Other than iron and silicon, the alloys normally contained approximately the following impurities: carbon, 0.03 per cent; manganese, 0.07; phosphorus, 0.008; sulphur, 0.02; copper, 0.07; tin, 0.01, and from nil to a trace of chromium, nickel and copper. All of the alloys used were melted in open-hearth furnaces, except where otherwise noted, and were hot-rolled to 0.100-in. plate. Samples approximately 1/2 in. square were then cut from these materials. So that the surface conditions of the samples used for oxidation would be standardized, each sample was ground through 000 emery paper immediately before oxidation. Two different techniques were employed in carrying out the oxidizing treatments. One consisted simply of heating the samples with free access to air. In this treatment the samples were set on edge on a refrac-

Jan 1, 1945

By Alfred R. Powell

Late in 1944 a group of petroleum and coal technologists was organized in Washington under the sponsorship of the Petroleum Administration for War and the U. S. Bureau of Mines. This group, known as the Technical Oil Mission, was placed under the authority of the Technical Industrial Intelligence Committee of the Joint Chiefs of Staff, which was then promoting the organization of other missions to be sent to Germany to obtain technical information regarding various industries in that country. The objective of the Tehnical oil Mission was to obtain technical data on German production of synthetic oil from coal and all other commercial practices and research projects connected with the oil industry. The primary purpose was to obtain such data as were immediately essential to assist the war against Germany and Japan, with secondary emphasis on technical information that would assist American industry after the end of the war. since oil-production facilities in Germany and the occupied countries controlled by Germany were the top targets for strategic bombing, the Technical Oil Mission was the first group under the Technical Induslrial Intelligence Com,mittee to enter Germany. A few members of the group flew to London in February 1945 and the majority of the remainder followed in March. In London they were joined by an equal number of British investigators and the combined mission was then sent into Germany under the authority of the Combined Intelligence Objectives Subcommittee (CIOS). A summary of the more important information gained by this combined British and American mission is presented below. German Oil Production The oil available to Germany, both natural and synthetic, and including production from occupied countries, reached a peak in late 1943 and early 1944 Production at this time was at the rate of 1,200,000 metric tons Per month, equivalent to 100,000,000 bbl. per year, or about 7 per cent of the wartime production in the United States. Of this production, jo per cent was crude oil from Romania and Hungary, 12 Per cent was crude oil from Germany itself, including Austria, 9 per cent cumprised coal-carbonization products, that is, tar and light oil, and only the remaining 29 per cent was synthetic liquid fuel made from coal or tar. Synthetic liquid fuel made in Germany was equivalent therefore to less than 2 per cent of wartime production of crude oil in the United States. The success of the strategic bombing campaign against German oil-production facilities is demonstrated by the fact that by September 1944 the Ploesti fields of Romania and much of the syrlthetic oil production had been eliminated, so that the amount of oil available to the German war machine was only 25 per Cent of the peak qualltity mentioned above. By early 1945, when the combined British and American oil mission was entering

Jan 1, 1947

By Alfred R. Powell

Late in 1944 a group of petroleum and coal technologists was organized in Washington under the sponsorship of the Petroleum Administration for War and the U. S. Bureau of Mines. This group, known as the Technical Oil Mission, was placed under the authority of the Technical Industrial Intelligence Committee of the Joint Chiefs of Staff, which was then promoting the organization of other missions to be sent to Germany to obtain technical information regarding various industries in that country. The objective of the Tehnical oil Mission was to obtain technical data on German production of synthetic oil from coal and all other commercial practices and research projects connected with the oil industry. The primary purpose was to obtain such data as were immediately essential to assist the war against Germany and Japan, with secondary emphasis on technical information that would assist American industry after the end of the war. since oil-production facilities in Germany and the occupied countries controlled by Germany were the top targets for strategic bombing, the Technical Oil Mission was the first group under the Technical Induslrial Intelligence Com,mittee to enter Germany. A few members of the group flew to London in February 1945 and the majority of the remainder followed in March. In London they were joined by an equal number of British investigators and the combined mission was then sent into Germany under the authority of the Combined Intelligence Objectives Subcommittee (CIOS). A summary of the more important information gained by this combined British and American mission is presented below. German Oil Production The oil available to Germany, both natural and synthetic, and including production from occupied countries, reached a peak in late 1943 and early 1944 Production at this time was at the rate of 1,200,000 metric tons Per month, equivalent to 100,000,000 bbl. per year, or about 7 per cent of the wartime production in the United States. Of this production, jo per cent was crude oil from Romania and Hungary, 12 Per cent was crude oil from Germany itself, including Austria, 9 per cent cumprised coal-carbonization products, that is, tar and light oil, and only the remaining 29 per cent was synthetic liquid fuel made from coal or tar. Synthetic liquid fuel made in Germany was equivalent therefore to less than 2 per cent of wartime production of crude oil in the United States. The success of the strategic bombing campaign against German oil-production facilities is demonstrated by the fact that by September 1944 the Ploesti fields of Romania and much of the syrlthetic oil production had been eliminated, so that the amount of oil available to the German war machine was only 25 per Cent of the peak qualltity mentioned above. By early 1945, when the combined British and American oil mission was entering

Jan 1, 1947

By Alfred F. Brainerd

Some fifty years ago, iron-ore was discovered near the town of Sheldon, Franklin County, Vermont, in a vein out-cropping on a knoll near Black Creek, which empties into the Missisquoi River a couple of miles away. A short time after this discovery, the owners, Mr. TV. 0. Gadcomb and Hon. Lawrence Brainerd, both of St. Albans, commenced mining (mostly by open cut), and also erected a Catalan forge, from which iron blooms were produced, most of which were worked into bar-iron and used in the neighborhood of the forge, while some were shipped by Lake Champlain to Troy, Albany and New York. But by reason of the lack of any railroad connections, and an insufficient demand for the blooms, this forge was subsequently abandoned, and the material used in its construction removed to other places. Mr. Keith, of Sheldon, used for many years a mixture of this ore with bog-ore from Swanton, in a charcoal blast-furnace, the product of which he consumed partly in his own foundry, shipping, however, a considerable amount to Troy and New York. Accurate data as to this enterprise are not at hand. The same vein has since been traced for some 20 miles, and some prospecting has been done 011 its outcrops at Berkshire, Enosburg and a few miles east of St. Albans; but the vein being small, only a few car-loads of ore were taken out from these places. The commencement of the St. Albans Iron and Steel Works in 1872, and the erection in 1877 of a ten-ton Siemens open-hearth furnace for the manufacture of steel rails, opened a new use for this ore. The furnace-charge consisted of pig-iron, old mils, steel scrap, and magnetic iron ore, added towards the close of the heat. The ore

Jan 1, 1885

By Roswell Johnson

To know the rate of decline of oil wells is very important, yet ordinarily we are prevented from getting this rate because the oil from several wells is put into one or a few tanks as soon as the wells have been connected to the power. The object of doing this is economy of tanks, pipes, labor and accounting. FIG. 1. But we are making a great sacrifice for this small economy. The advantages of the individual records are that we would know better: 1. When the well has ceased to be profitable. 2. When a well has gotten into bad condition. 3. The real record of the yield per acre and the rate of decline of the wells. The lease total is too mixed as to age of the wells for existing records to have much significance. To obtain such individual well records and more accurate logs are the great desiderata of satisfactory management of oil properties. 4. Which wells show the slowest decline-information which is valuable in locating new wells or purchasing adjoining leases.

Jan 6, 1917

By Edward Judd

CONSTRUCTION of the long projected Moffat tunnel, on the Denver & Salt Lake R. R., between Tolland and Irving, Colorado, is now actually and actively progressing. This 6.1-mile bore through the Rocky Mountains, at an elevation of about 9200 ft., will eliminate 33 1/3 miles of probably the most tortuous standard-gage track in the world, and at the same time will avoid the necessity for crawling over the snow-bound continental divide at an elevation of 11,660 ft Completion of the tunnel within the stipu-lated four years, is expected to nave an immediate effect on the develop-ment of the known coal fields in north-western Colorado, already penetrated at Craig, the present terminus of the road, while it will also enable the railroad to carry out the original designs of its founder, David H. Moffat, for through traffic from farther west. The intention now is to accomplish the latter object by an extension from McCoy following the canon of the Grand River down to a connection with the Denver & Rio Grande at Dotsero. Legal impediments to the financ-ing of the tunnel having been removed by action of the Colorado legislature in April, 1922, the Moffat Tunnel Improvement District issued bonds to the amount of $6,720,000 which have been widely and quickly distrib-uted through a New York banking house. Responsi-bility for the execution of the project has been vested in the Moffat Tunnel Commission, to which a board of consulting engineers has been appointed for carrying out the details of administration. This board includes D. W. Brunton and L. D. Blauvelt, of Colorado, and J. Vipond Davies and J. Waldo Smith, of New York; R. H. Keays, who has managed large tunnel projects in New York, is chief engineer for the Commission.

Jan 11, 1923

By Charles R. Fettke

The outstanding event of the year 1929 in the Appalachian area was the intensive drilling activity in the Bradford and Richburg pools of northwestern Pennsylvania and southwestern New York State, particularly the former, in connection with the continued extension of the five-spot system of water-flooding. More new development work was undertaken and completed than during any previous year since reclamation methods were first applied. This was due in part to an excellent price for oil and in part to discovery of the fact that more intensive methods (five-spotting) yielded greater profit. While several oil wells of comparatively large initial production were completed, no new oil pools of significance were discovered in the Appalachian area during the year. A number of small gas pools were opened in areas already surrounded by producing wells and at least three others in areas located some distance from any producing pools. Petroleum Development According to statistics of the U. S. Bureau of Mines, 33,7,57,000 bbl. of petroleum were produced in the Appalachian field during 1929 as compared to 31,060,000 bbl. in 1928.' Of the total 1929 production, 23,391,618 bbl. consisted of Pennsylvania grade oil as compared to 21,096,710 bbl. in 1928. The 1929 Pennsylvania grade production represents an increase of 37.4 per cent. over that of 1924. This increase can be attributed largely to the rapid development of water-flooding in the Bradford and Richburg pools. The Bradford field of northwestern Pennsylvania and adjaccnt portions of New York State experienced the busiest year since the boom days of the early eighties. Wells completed during the year totaled 2679.2 In spite of the high prices asked for acreagc, which in some of the choicest territory has been as high as $6000 an acre, a considerable number of properties changed ownership during the year. There is at present a pronounced tendency to consolidate the great number of small individually operated properties into larger units.

Jan 1, 1930

By Leonard P. Colvin

Like all successful American enterprises, the mining industry is constantly trying to increase production, lower costs and improve working conditions. Companies are, of course, intensely interested in new equipment to help them gain these important ends, and one recent development-the mechanical raise climber--contributes to all three goals. Properly used, it increases production, cuts costs and has a number of important safety aspects all of which are the subject of this article.

Jan 1, 1962

By Allen Rogers

TWENTY-FIVE DOLLARS for nothing at all except a sheepskin. That to me is the effect of the New York State law for registration of engineers and the same may be said of any of the state licensing laws. Of course, if one has to practice in more than one state, he must pay a more or less equal amount for every state he works in; and yet there has been little effective protest against these laws. It would seem that the spirit which animated the Boston Tea Party is non-existent amongst engineers. Undoubtedly a good many consider, through their failure to understand the law, that the matter does not affect them. In New York State it is provided that "any person practicing or offering to practice profes-sional engineering or land surveying . . . shall be licensed as hereinafter provided." To quote further from the law: "A person practices professional engi-neering . . . who holds himself out as able to do, or who does, the work that an engineer does . . . " The cunning of the wording of this article can only be appreciated by considering that anyone calling himself an engineer falls within the definition; its liberal inter-pretation (I have not quoted the whole of it) would embrace many who do not consider themselves engi-neers. The state authorities may not construe it to include such individuals; indeed, they may possibly consider it inexpedient to extend it to include engineers of subordinate grade, but the possibility is always there and, even though an engineer be of the grade of assis-tant, he may at any time be called upon to substitute for his principal in responsible charge of the work. It is therefore clear that anyone calling himself engineer and practicing engineering must, for his own protection, apply for registration or run the risk of violating the law. Now, what is the sense of all this? We have done very well without such restrictions on the means of gaining our livelihood. If one only stops to think, there is hardly a minute of his modern existence when he is not dependent for his safety on the engineering by engineers of yesterday or today. How often is one in jeopardy through failure of engineering works, work done under the supervision of those same engineers? If all of us had to wait for our ends by such means, our average life would probably be some thousands of years. Where, then, is the point to the object declared in all these laws that the need for licensing is "to safeguard life, health and property?" Bosh!

Jan 4, 1923

By Roy E. Dickerson, W. M. O Connor

The production of crude petroleum of the Bacuranao field, Cuba, fell off rapidly because no new wells Mere drilled. In December 1938, the total was 15 bbl. per day. The estimated average from this serpentine field for the year is 20 bbl. per day. The Motembo area produced an estimated average of 160 bbl. per day. Production in July was 215,946 gal of gasoline, or 165 bbl. per day. In August production was higher because a new well in the concession, the Luisa Marcela, produced 189 drums the first day and required pit storage. The Atlantic Refining Company of Cuba started a deep test upon a long, narrow, surface-defined anticline 3 km. south of Remedios, a town on the north coastal plain of Santa Clara province, in December 1938. The Atlantic Refining Co. is doing extensive seismograph arid gravity-meter work in Matanzas arid Santa Clara provinces. The Shell company was rigging for a deep test in western Havana province at a location about 2 km. west of the town San Antonio dc los Banos New Petroleum Law More serious attention was given by some of the major oil companies to the development of petroleum in Cuba as a, result of the passage of a Petroleum Law ill that country on May 9, 1938. Under the old mining lam of Cuba, which gave no special treatment to petroleum, the usual provisions giving reasonably satisfartory guarantees to encourage investmerit of foreign capital were either entirely lacking or were 30 ambiguously expressed as to require legislative action. Under the new law, Government royalty is fixed at 10 per cent with the provision that it will be reduced to 9 per cent on crude petroleum that is refined in Cuba. Royalty to the surface owner is 1 per cent. A surface tax on a sliding scale from 10¢ to 406 per hectare per year is applicable to all exploitation concessions granted under the law or adapted to its provisions. So export tax is payable upon petroleum. Stability of taxation

Jan 1, 1939

By W. M. O Connor, Roy E. Dickerson

The production of crude petroleum of the Bacuranao field, Cuba, fell off rapidly because no new wells Mere drilled. In December 1938, the total was 15 bbl. per day. The estimated average from this serpentine field for the year is 20 bbl. per day. The Motembo area produced an estimated average of 160 bbl. per day. Production in July was 215,946 gal of gasoline, or 165 bbl. per day. In August production was higher because a new well in the concession, the Luisa Marcela, produced 189 drums the first day and required pit storage. The Atlantic Refining Company of Cuba started a deep test upon a long, narrow, surface-defined anticline 3 km. south of Remedios, a town on the north coastal plain of Santa Clara province, in December 1938. The Atlantic Refining Co. is doing extensive seismograph arid gravity-meter work in Matanzas arid Santa Clara provinces. The Shell company was rigging for a deep test in western Havana province at a location about 2 km. west of the town San Antonio dc los Banos New Petroleum Law More serious attention was given by some of the major oil companies to the development of petroleum in Cuba as a, result of the passage of a Petroleum Law ill that country on May 9, 1938. Under the old mining lam of Cuba, which gave no special treatment to petroleum, the usual provisions giving reasonably satisfartory guarantees to encourage investmerit of foreign capital were either entirely lacking or were 30 ambiguously expressed as to require legislative action. Under the new law, Government royalty is fixed at 10 per cent with the provision that it will be reduced to 9 per cent on crude petroleum that is refined in Cuba. Royalty to the surface owner is 1 per cent. A surface tax on a sliding scale from 10¢ to 406 per hectare per year is applicable to all exploitation concessions granted under the law or adapted to its provisions. So export tax is payable upon petroleum. Stability of taxation

Jan 1, 1939

By William C. Brice

Minnesota is involved in planning controversies related to taconite and potential copper-nickel mining. Mine facility planning includes the Reserve dining on-land tailings disposal issue and the potential for a new copper-nickel mining district. Both provide a unique opportunity for innovative planning in the attempt to be responsive to public and private interests. Concerns that emanate as a result of mineral resource activities include environmental protection, land use competition, land exchanges, highway and utility extensions, and legal constraints on public or private lands. The purpose of this newly-developed planning approach is to anticipate such issues and provide a rational information base for dealing with them. The result will be a framework plan for guiding public planning, and an impact assessment for reviewing the implications of industrial project proposals. The approach uses a computer-stored resource inventory of natural and cultural information. Geographic data is mapped and entered into a computer storage and retrieval system. This enables systematic analysis of mineral resources along with environmental and land use considerations. Computer mapping describes the relationship of each activity and allows identification of potential conflicts; it also shows geographical extent in the form of statistical compilations. Resource data is being collected and compiled using a standard metric grid (Universal Transverse Mercator). Individual cells are 100 m. squares and represent areas of about 2.5 acres. The study area contains about 145,000 cells. Data inventories are being compiled in 25 natural and cultural resource categories. Geologic variables include Bedrock Geology, Taconite Reserves and Potential Resources, Depth to the Duluth Complex Contact and two soil inventories. Topographic and hydrologic variables include elevation, slope, slope orientation, surface hydrology, and watersheds. There are also 6 biological data variables and 7 land use inventories.

Jan 1, 1977

By Hiroshi Oikawa, A. G. Guy

Recent experimental evidence has shown that it is often incorrect to neglect the reactions occurring at an interface with respect to the diffusion reactions. By introducing reaction-rate constants and k for the transfer of components 1 and 2 between the a and b phases, a phenomenological description has been devised for the coupled processes of diffusion and in-terfacial reaction. An illustrative example has been analyzed with the aid of a suitable computer program. The results indicate that for kab values on the order of 10'1 cm per sec and Ð values of about 10¯10 sq cm per sec, the interfacial reactions are significant during the first 10 2 to l0 6 sec of a diffusion experiment. Among the observable effects of the interfacial reactions in this case appear to be the burying Kirkendall markers and an anomaly in the initial shifting of these markers. THE study of diffusion between two phases is especially important because of its direct connection to phase transformations. For example, the transformation of austenite to ferrite involves diffusion in the a and ý phases and also an interfacial reaction (trans formation) at the a/? interface. If ferrite and aus-tenite are the two members in a diffusion couple, the same two reactions occur during the diffusion process. The numerical values obtained for the diffusion coefficients and interfacial-reaction constants from diffusion experiments can then be employed to predict phase-transformation behavior. Refinement of the calculations of phase transformation is also suggested by the present method for treating two-phase diffusion. In the recent paper by Nolfi et al.' only the solute com ponent is considered in the interfacial reaction accompanying a phase transformation. The present analysis demonstrates that both components must be considered. It is generally recognized that reactions of some kind must occur at the interface in a two-phase diffusion couple, but usually it is assumed that the interface reaction occurs so rapidly that its effect on the overall process is unobservable because the slower diffusion process determines the kinetics of the process. However, Seith and Heumann 2 pointed out that effects of the interfacial reaction should always occur in the early stages of diffusion, and recently Eifert et al. 3 have shown that interfacial reactions influence the composition and motion of the interface in a/ß Al-Cu diffusion couples during the entire course of prolonged, high-temperature treatments. A general procedure for handling the combined processes of interfacial reaction and diffusion in a binary, two-phase system is to introduce kinetic coefficients for the interface reactions and to develop the system of equations governing the interlinked processes of diffusion and interface reaction. The resulting equations, although not amenable to solution in closed form, can be usefully manipulated by a digital computer. INTERFACIAL REACTIONS IN TWO-PHASE DIFFUSION Consider the general case of diffusion between two solid solutions, a and ß, which are adjacent phases in a binary system, Fig. 1. Two semiinfinite bars having compositions c1 and c0ß are jointed at x = 0. If concentrations are expressed in volume fraction,4

Jan 1, 1970

By E. van Walsum

Tunneling methods through rock have, since the successful development of explosives, relied almost solely on blasting. Over the last ten years, rock-tunneling machines (moles) have been developed and some major projects have been carried out successfully with the use of such machines, which rely on the destruction of rock by mechanical means rather than blasting. Various other basically new methods are presently under study, such as the use of laser beams, water jets, etc. For practical purposes, there are presently only two methods commercially available: 1) blasting or 2) tunneling by mole. A contractor would choose at present either one method or the other. Both methods have their advantages and disadvantages (Fig. 1). The thought has occurred that the next practical development in rock- tunneling technology might be a combination of the best features of the mole technique and those of the blasting technique. A preliminary evaluation of this approach indicated that there is definitely a good potential for fruitful developments along these lines. My purpose is to place on record some of the thinking and some of the ideas which were developed along these lines and to point out certain areas where development efforts are required. In trying to find an improved tunneling technique, we looked in particular for the following qualities: 1) safety, 2) continuity, 3) uniformity, 4) automation, and 5) flexibility. TUNNELING BY BLASTING Conventional tunneling by means of blasting proceeds generally in recurring sequences of events: 1) drilling, 2) loading, 3) firing, 4) mucking-out, and supplementary operations (such as scaling and lining). These four operations (drilling, loading, firing, mucking) proceed one after another.

Jan 1, 1970

By A. Andreas, E.H. Wells

The oil and gas industry of New Mexico recorded notable progress ill 1935. More wells were brought in than in any previous year, and important new discoveries were made. The total number of completions was 340, of which 260 were oil wells, 8 were gas wells and 72 were dry holes. The total oil production was 20,228,947 bbl., an appreciable increase over the 1934 production of 16,636,804 barrels. Many of the wells completed in southeastern New Mexico were acidized. This treatment proved highly effective in increasing the capacity of the wells, the resulting potentials usually being two to ten times as large as before acid treatment. In the Lea County fields in which proration was entirely on an acreage basis, the tendency of many of the operators was to complete their wells according to best conservation practice rather than to obtain the largest possible potential. Much remedial work was done in the Hobbs, Cooper, Jal and Eunice fields, and with excellent results. At many of the wells high gas-oil ratios were greatly reduced and encroaching waters shut off by setting packers. Several companies carried on pretentious geophysical campaigns in the southeastern part of the state. The location of the Amerada discovery well in the Monument field was based on geophysical surveys. The New Mexico Oil Conservation Commission, established by the 1935 Legislature and consisting of the Governor, the Commissioner of Public Lands and the State Geologist, began to function in May. Production in the state thereafter was based on orders issued by the Commission. Proration in the Hobbs field, which had been provided for since July, 1930, by successive proration agreements signed by all operators in the field and approved by the State Geologist, was continued by the Commission by giving approval to the current proration agreement,. A plan of proration for the other Lea County fields that had been in offect since early ill 1934 was adopted. 111 September, 1935, the Commission approved a. proration agreement for the Artesia-Jackson-Maljarnar area in Eddy and Lea counties that had been agreed upon by

Jan 1, 1936

By E. H. Wells, A. Andreas

The oil and gas industry of New Mexico recorded notable progress ill 1935. More wells were brought in than in any previous year, and important new discoveries were made. The total number of completions was 340, of which 260 were oil wells, 8 were gas wells and 72 were dry holes. The total oil production was 20,228,947 bbl., an appreciable increase over the 1934 production of 16,636,804 barrels. Many of the wells completed in southeastern New Mexico were acidized. This treatment proved highly effective in increasing the capacity of the wells, the resulting potentials usually being two to ten times as large as before acid treatment. In the Lea County fields in which proration was entirely on an acreage basis, the tendency of many of the operators was to complete their wells according to best conservation practice rather than to obtain the largest possible potential. Much remedial work was done in the Hobbs, Cooper, Jal and Eunice fields, and with excellent results. At many of the wells high gas-oil ratios were greatly reduced and encroaching waters shut off by setting packers. Several companies carried on pretentious geophysical campaigns in the southeastern part of the state. The location of the Amerada discovery well in the Monument field was based on geophysical surveys. The New Mexico Oil Conservation Commission, established by the 1935 Legislature and consisting of the Governor, the Commissioner of Public Lands and the State Geologist, began to function in May. Production in the state thereafter was based on orders issued by the Commission. Proration in the Hobbs field, which had been provided for since July, 1930, by successive proration agreements signed by all operators in the field and approved by the State Geologist, was continued by the Commission by giving approval to the current proration agreement,. A plan of proration for the other Lea County fields that had been in offect since early ill 1934 was adopted. 111 September, 1935, the Commission approved a. proration agreement for the Artesia-Jackson-Maljarnar area in Eddy and Lea counties that had been agreed upon by

Jan 1, 1936

By D. W. Loughridge

INTRODUCTION Raising capital in the 1990s is a timely subject. However, many of us thought why should raising capital in the 1990s prove to be unlike it was in the 19805, the 1970s, the 1%0s, or earlier? There are a lot of creative people in banking and in corporate treasury departments. New tools and techniques are continuing to emerge, many of which are discussed in other papers in this book. While we have new financing tools at our disposal, the underlying issue has not changed. Projects and investments must be judged on their own merits. If they cannot be justified by conventional financial analysis, they should not be built. If they can be justified, it is likely that the financing will be available. The challenges faced in raising capital in this decade will persist to the next. The issues of the 1980s -- currency fluctuation, disruptive merger and acquisition activity, commodity price volatility, political risk, and debt crisis -- will all persist in an increasingly international business environment. I will focus on the financing we have just completed for the Escondida Copper Project in Chile. The Escondida financing is structured along the classic project financing model developed in the late 1970s, but it deals with issues of the 1980s and the 1990s. The financing was intriguing, not just because of the technical issues involved, but also the challenge of reaching an agreement in a large and diverse group. Escondida had the one essential feature that made its financing possible. It was commercially very attractive. It would produce at low cost a commodity (copper concentrates) that direct consumers felt would be in tight supply. The project had the direct support not only of its sponsors, but also its customers, and, very importantly, its host government. The non- recourse financing of Escondida would not have been possible without the support of these parties, and without the robust economics that made this effort worthwhile. The issue was more complicated. Operations in all parts of the world entail some political exposure. This project is in Chile, where there was a constitutional requirement that a plebescite be held when the project would be in its early stages. This plebescite would determine the fate of a 15 year old military dictatorship. The project is copper, a commodity generally deemed to be in surplus. Copper has a history of price volatility (whose price has varied from $.58 to $1.53 per pound over the past two years). It is politically sensitive, not only in Chile, but in the United States, Canada and other developed countries. The project is international, with all the problems of dealing with a variety of currencies, a variety of cultures, and a variety of laws and commercial practices. The project is also large and capital intensive, with a total cost of U.S. $1.1 billion. ESCONDIDA PROJECT Escondida, the largest known copper ore body in the world, was discovered in March of 1981, by Utah International in a joint venture with Getty Oil Company. In 1984, both Utah and Getty were involved in ownership changes, Utah being acquired by BHP. A later restructuring of the ownership of Escondida resulted in BHP, as manager, carrying a 60% interest, Rio Tinto-Zinc Corporation (RTZ) 30%, and a consortium of Japanese companies led by Mitsubishi Corporation with 10%. The Japanese consortium is incorporated as JECO (Japan Escondida Corporation). This ownership structure, which spread ownership around the world, was the first tangible step toward managing both the commercial and political risk associated with the project.

Jan 1, 1990

By L. P. Teas

The year 1931 has been one of unusual interest in Gulf Coast petroleum development, not so much because of the number of new prospects discovered, for apparently none of any present distinction have been found, but because of the discovery of so many new oil fields and the proving of so many old prospects. During the year 10 new oil fields have been found on the Coast; five in Louisiana and five in Texas. Two suspected salt domes were proven by the drill. Production dropped from a daily average of 192,000 to 162,670 bbl., or an average of 58 bbl. for each producing well, and active operations from 189 to 119. During 1931 the Coast produced approximately 48,600,000 bbl., or 44 per cent less than in 1930, when 86,500,000 bbl. were produced. The daily return at the beginning of the year was $192,000 and at the end only $126,780, the price having dropped from $1 for A grade and a range of $0.75 to $1.22 for B grade to a price range of 70 to 86c, or an average of 78c $ per barrel at the end of 1931. The average Coastal well produced 17,400 bbl. of oil during 1931. During the year development in the old fields has continued active at Barber's Hill only, although some work is in progress at Humble, Pierce Junction, Refugio and Pettus. Clear Lake is active but the large ownerships will prevent the "boom" type of field. Production is being held fairly steady at Barber's Hill and Pierce Junction, but has declined rapidly during the year at Refugio, Humble, and to a lesser degree at Pettus. The 6000-ft. production at Barber's Hill has shown a decided drop during the year and has not measured up to expectations.

Jan 1, 1932

By W. A. Koehler, M. E. Hinkle

INTRODUCTION THE oxidation of pyrites and marcasite in coal-mine strata to produce discolored acid mine drainage has long been explained by chemical reactions occurring in three stages: I. The iron sulphide minerals are oxidized by air in the presence of water to produce a nearly colorless solution of fer¬rous (iron) sulphate and some sulphuric acid. 2. The ferrous sulphate and part of the sulphuric acid combine with additional oxygen to form ferric (iron) sulphate. 3. The ferric sulphate hydrolyzes to form a reddish-brown precipitate and additional sulphuric acid. Nevertheless, chemical data alone are not sufficient to explain all observed facts. The first stage seems to proceed more slowly in the chemical laboratory than in nature. The second and third stages nor¬mally occur to a marked extent within a few days with raw mine water. However, the visible discoloration that characterizes these latter stages will not develop for months if the mine water is sterilized. By means of bacteriological techniques, two organisms have been isolated from acid coal-mine drainage. These are believed to have a part in promoting the chemical reactions summarized above. One organism is considered to be Thio¬bacillus thiooxidans, which is known to be able to convert elementary sulphur or sodium thiosulphate to sulphuric acid. Its relation to the formation of acid mine drainage has not yet been established. Apparently it does not promote the oxida¬tion of ferrous iron compounds in mine, drainage to the ferric state. The second organism has not been identi¬fied by name but is described as "Gram negative, non-spore-forming rods approxi¬mately 0.4 micron wide by o.8 to 1.0 micron long." A pure culture of this when added to sterile mine water will cause the latter to become amber and develop the typical rusty precipitate. However, it has not been found to convert sulphur com¬pounds to sulphuric acid. Further research is planned to determine whether or not these microorganisms play a significant part in the first stage of oxidation whereby pyrites and marcasite minerals go into solution. Some of the conditions found in abandoned sections of coal mines, such as a reduced percentage of oxygen and increased percentage of carbon dioxide in the air, as well as the existing temperature and acidity ranges, will be tolerated by and may even be favorable to these organisms. ACID COAL MINE DRAINAGE Acid coal mine drainage has been the concern of coal mine operators, industrial¬ists, sportsmen and public officials for many years. The amount of acid flowing into our streams in the coal-producing areas varies considerably from mine to mine and from

Jan 1, 1948