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By A. A. Smith, J. S. Smart

NUMEROUS investigations of the effects of the various impurities common to commercial coppers have been published, and the data have found wide use in industry. Naturally, emphasis has been placed on the oxygen-bearing coppers of the tough-pitch variety, but need is now evident for data covering the oxygen-free condition as well. Furthermore, relatively few of the important reactions between oxygen and the various impurities are well understood, and often the data at hand are not applicable to the low concentrations encountered in commercial coppers. This paper presents the changes in conductivity and softening temperature derived from individual additions of the group VIII triad, iron, cobalt and nickel, to high-purity copper, and constitutes a portion of the copper-research program being conducted at the Central Research Laboratory of the American Smelting and Refining Co. The method of preparation of high-purity copper and its alloys in either the oxygen-free or oxygen-bearing form has been described previously.1 The purity of this material, and the methods developed to produce it, provide the means for direct investigation of the very low concentration range in which the various impurities generally exist in commercial coppers. The usual necessity for extrapolation to this range using the results obtained from higher concentrations, and the interfering effects of extraneous impurities, are thus simultaneously circumvented. Since previously published data have adequately presented the effects of higher concentrations of iron, cobalt and nickel, the present investigation has been confined to the composition range 0 to 0.05 per cent. All alloys were initially prepared in the form of oxygen-free continuous cast rod, the weighed alloying additions in suitable form being charged with the pure copper to the continuous casting crucible. The best of the available high-purity alloying materials were used, and spectrographic analyses confirmed the absence of interfering elements from the alloys formed. Each series was compounded in the direction of increasing concentration, starting with pure copper in a new crucible and finishing with the 0.05 per cent alloy. Composition was closely controlled by adding the alloying element in the form of a carefully compounded and analyzed master alloy rendered uniform by continuous casting. The accuracy of this method of synthesis was proved by chemical analysis of the more concentrated alloys, and, accordingly, there is every reason to credit the stated composition of the very dilute alloys in the range where chemical analysis becomes highly uncertain. Oxygen-free samples for measurements of conductivity and softening temperature were obtained by drawing the continuous cast rod to wire of 0.081-in. diameter, employing a number of intermediate anneals to refine the grain structure. The

Jan 1, 1942

By A. A. Jr. Smith, J. S. Smart

Numerous investigations of the effects of the various impurities common to commercial coppers have been published, and the data have found wide use in industry. Naturally, emphasis has been placed on the oxygen-bearing coppers of the tough-pitch variety, but need is now evident for data covering the oxygen-free condition as well. Furthermore, relatively few of the important reactions between oxygen and the various impurities are well understood, and often the data at hand are not applicable to the low concentrations encountered in commercial coppers. This paper presents the changes in conductivity and softening temperature derived from individual additions of the group VIII triad, iron, cobalt and nickel, to high-purity copper, and constitutes a portion of the copper-research program being conducted at the Central Research Laboratory of the American Smelting and Refining Co. The method of preparation of high-purity copper and its alloys in either the oxygen-free or oxygen-bearing form has been described previous1y.l The purity of this material, and the methods developed to produce it, provide the means for direct investigation of the very low concentration range in which the various impurities generally exist in commercial coppers. The usual necessity for extrapolation to this range using the results obtained from higher concentrations, and the interfering effects of extraneous impurities, are thus simultaneously circumvented. Since previously published data have adequately presented the effects of higher concentrations of iron, cobalt and nickel, the present investigation has been confined to the composition range o to 0.05 per cent. All alloys were initially prepared in the form of oxygen-free continuous cast rod, the weighed alloying additions in suitable form being charged with the pure copper to the continuous casting crucible. The best of the available high-purity alloying materials were used, and spectrographic analyses confirmed the absence of interfering elements from the alloys formed. Each series was compounded in the direction of increasing concentration, starting with pure copper in a new crucible and finishing with the 0.05 per cent alloy. Composition was closely controlled by adding the alloying element in the form of a carefully compounded and analyzed master alloy rendered uniform by continuous casting. The accuracy of this method of synihesis was proved by chemical analysis of the more concentrated alloys, and, accordingly, there is every reason to credit the stated composition of the very dilute alloys in the range where chemical analysis becomes highly uncertain. Oxygen-free samples for measurements of conductivity and softening temperature Were obtained by drawing the continuous cast rod to wire of 0.08I-in. diameter. employing a number of intermediate anneals to refine the grain structure. The

Jan 1, 1942

By G. L. Oldright

THE development of the reverberatory furnace for smelting copper ores up to 1912 was described by E. P. Mathewson1 with details concerning the great changes in dimensions of the furnace. Hayward2 tabulated similar data, giving developments up to about 1924, in his revision of Hofman's Metallurgy of Copper. DEVELOPMENT OF PRESENT SMELTING PRACTICE Dimensions of Furnace Very great changes were made in the dimensions of the smelting hearths of the furnaces in the period from about 1800 to 1906, the length increasing from about 11 to 116 ft., and the width from 8 to 19 ft. During this time the tonnage smelted increased from about 9 to 250 tons per 24 hr., and the tons of charge smelted per ton of coal increased from 0.77 to 4.3. Dr. Mathewson3 noted no great difference in the "fuel ratio" (i. e., the amount of charge smelted per ton of coal) as the furnace at Anaconda was increased in length by stages from 85 to 116 ft. (The percentage of copper in the slag, however, was lowered from 0.42 to 0.36 per cent. The other components of the slag were not given.) Lump coal fired on grates was the fuel used during this period. The practice in operating the furnaces over such a length of time naturally varied considerably, and there were differences in composition and nature of the charge, yet it may be considered that the improvements made were due largely to increases in the size of the furnace used. Doubt-less some credit should be given to improvements in operating technique, like changes in the methods of firing the lump coal. However, the greater part of the advance was probably due to factors influencing the

Jan 1, 1928

By Walter Miller

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

Jan 1, 1947

By Walter Miller

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

Jan 1, 1947

By John C. Robison

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

Jan 1, 1985

By Lawson P. Entwistle

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

Jan 1, 1949

By Lawson P. Entwistle

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

Jan 1, 1949

By John Birkinbine

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

Jan 1, 1886

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

Jan 9, 1950

By Thomas C. Baker

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

Jan 1, 1925

By C. W. Burrows

The burden a man can endure depends on its magnitude and the number of times it is applied, as well as on many other factors. The resisting power of steel likewise is dependent on many factors. The maximum load it can support indefinitely is much less than its possible momentary burden. A light load straining the metal far within its elastic limit, if repeated indefinitely, ruptures the metal. The magnitude of the stresses that may be alternately applied and removed without rupturing the material depends on the number of repetitions of the cycle; the intervening periods of rest; the thermal, electric, and magnetic conditions, as well as the presence of secondary streessses. While we are unable to formulate the law between the magnitude of repeated stresses necessary to produce rupture and the length of time during which these alternating stresses may be applied before rupture, my experience is that the time increases as the magnitude of the force decreases, according to a law which! to a first approximation, is exponential. In other words, F = Ce-t where F= magnitude of alternating stresses; t= time for which stresses are continued; C = constant, which depends on the conditions under which the operations are carried out. It is quite probable that the same type of law holds for the magnitude of a continuous force and its duration. When a rod of steel is subjected to the blows of a drilling hammer several things happen. First, one end is struck by the hammer and the other end is driven into the rock, thus causing a bodily displacement of the entire material of the steel drill. The greatest stresses involved in this bodily displacement are located at the two ends of the steel and manifest themselves by the distortion of these parts. Second, after the blow has been delivered, the steel drill, due partly to its own resiliency and partly to the resiliency of the rock, experiences a vibratory motion as a whole, this motion is quite similar to the bouncing of a rubber ball thrown violently upon a smooth pavement. Third, the free vibration of the drill is determined only by its own natural period of vibration. This motion involves all the characteristics of any vibrating body emitting sound. Certain elements of the rod will experience alternations of condensation and rarefaction and, in these regions, the individual steel

Jan 1, 1922

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

Jan 9, 1919

By M. L. Requa

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

Jan 1, 1918

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

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

Jan 1, 1942

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

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

Jan 1, 1942

By AIME AIME

THE convention which met in Washington at the call of the Joint Conference Committee was called to order at ten o'clock on Thursday morning; June 3, by Richard L. Humphrey, temporary chairman, member of the American Society of Civil Engineers, who made a brief statement of the reason for the meeting. Lieut. Col. Charles W. Kutz, Corps of Engineers, U. S. A., and Engineer Commissioner of the District of Columbia, then welcomed .the engineers composing the convention on behalf of the District of Columbia and, the Washington engineers. Although an elaborate program had been prepared on which were many well-known speakers on interesting and important topics, , it was voted to intersperse this to fill in the usual and unavoidable hiatuses in the business program of such a convention[ Calvert Townley, president of the American Institute of Electrical Engineers, was elected permanent chairman, and J. C. Hoyt, of Washington, was elected secretary of the convention. The following committees were appointed: Consti¬tution and by-laws, Richard L. Humphrey, chairman; resolutions, Philip N. Moore, chairman; and program, F. H. Newell, chairman. Then, Gardner S. Williams, member of the, A. S. C. E. and the Grand Rapids Engineering Society of. Grand Rapids, Mich., and one-time member of the American Association of Engineers, offered the following resolutions:

Jan 1, 1920

By M. G. Cheney

Careful estimates indicate that during 1942 new discoveries and extensions in West Central Texas added oil reserves slightly in excess of the eight million barrels produced. Drilling activity fell 40 per cent below 1941 and 82 per cent below the normal drilling activity of the late 1920's. Total production for the district continued its downward trend, now being less than % of the 42.7 million barrels peak in 1921. Rapid revival of activity is not probable under existing conditions, as costs of discovery, development and operations on the average probably now exceed current market price for the oil, the latter having remained constant since the spring of I941. Costs have advanced materially since the third quarter of 1941, when reports to the Tariff Commission indicated a margin of profit of 13.3 per barrel. Physical as well as economic conditions are holding back the amount of drilling in this district. The lenticular sands are not suited to 40-acre spacing regulations. There is no surplus of experienced oil-field labor. To reduce costs, much second-hand material is used for all except the deeper wells.. Price controls have retarded movement of used equipment by prescribing maximum prices that arc too low for the better grade materizl, thus making , owners reluctant to sell. On the other hand, buyers are unwilling to pay ceiling prices asked by sellers for poor material. Seventeen new oil fields and five new gas fields were found during 1942. Extensions and deeper 'drilling brought favorable results in eight older fields. The most significant new developments appear to have been in Coleman, Jones, Shackelford and Taylor Counties. A 5800-ft. completion in Wise County brought this county into the producing column for the first time. None of these new discoveries can he rated above one million barrel reserve on the basis of present development. Probably the most important development was discovery of a deeper pay (Gunsight lime) in the Wimberly field of Jones County, which shows promise of producing over an area of about 1000 acres. Jones and Shackelford Counties still lead the district in total annual production. Discovery of the Reddin pool, north central Taylor County, is credited to geochemical methods, making one success out of five or more wildcats based on such methods. Geophysical surveying increased decidedly during 1942 and returns from these studies are expected during coming years. Most of the wildcatting in the district is still based on surface and subsurface geological structural mapping, study of log data as to distribution of prospective producing reservoirs, and drilling in proximity to previous showings of oil and gas. Geological debate continues as to the proper correlation of the 100 to 300 ft. of gray lime that has produced more than 100 million barrels in the Parks, Brecken-ridge, Curry, Eliasville, Ibex, Pioneer and other important fields of this district. Fossils indicate that this limestone is younger than the Atoka beds of Oklahoma. On a structural basis most geologists include this formation with the Bend but a number of paleontologists believe it is more properly classified with the Strawn.

Jan 1, 1943

By M. G. Cheney

Careful estimates indicate that during 1942 new discoveries and extensions in West Central Texas added oil reserves slightly in excess of the eight million barrels produced. Drilling activity fell 40 per cent below 1941 and 82 per cent below the normal drilling activity of the late 1920's. Total production for the district continued its downward trend, now being less than % of the 42.7 million barrels peak in 1921. Rapid revival of activity is not probable under existing conditions, as costs of discovery, development and operations on the average probably now exceed current market price for the oil, the latter having remained constant since the spring of I941. Costs have advanced materially since the third quarter of 1941, when reports to the Tariff Commission indicated a margin of profit of 13.3 per barrel. Physical as well as economic conditions are holding back the amount of drilling in this district. The lenticular sands are not suited to 40-acre spacing regulations. There is no surplus of experienced oil-field labor. To reduce costs, much second-hand material is used for all except the deeper wells.. Price controls have retarded movement of used equipment by prescribing maximum prices that arc too low for the better grade materizl, thus making , owners reluctant to sell. On the other hand, buyers are unwilling to pay ceiling prices asked by sellers for poor material. Seventeen new oil fields and five new gas fields were found during 1942. Extensions and deeper 'drilling brought favorable results in eight older fields. The most significant new developments appear to have been in Coleman, Jones, Shackelford and Taylor Counties. A 5800-ft. completion in Wise County brought this county into the producing column for the first time. None of these new discoveries can he rated above one million barrel reserve on the basis of present development. Probably the most important development was discovery of a deeper pay (Gunsight lime) in the Wimberly field of Jones County, which shows promise of producing over an area of about 1000 acres. Jones and Shackelford Counties still lead the district in total annual production. Discovery of the Reddin pool, north central Taylor County, is credited to geochemical methods, making one success out of five or more wildcats based on such methods. Geophysical surveying increased decidedly during 1942 and returns from these studies are expected during coming years. Most of the wildcatting in the district is still based on surface and subsurface geological structural mapping, study of log data as to distribution of prospective producing reservoirs, and drilling in proximity to previous showings of oil and gas. Geological debate continues as to the proper correlation of the 100 to 300 ft. of gray lime that has produced more than 100 million barrels in the Parks, Brecken-ridge, Curry, Eliasville, Ibex, Pioneer and other important fields of this district. Fossils indicate that this limestone is younger than the Atoka beds of Oklahoma. On a structural basis most geologists include this formation with the Bend but a number of paleontologists believe it is more properly classified with the Strawn.

Jan 1, 1943

By J. Trevor Eyton

This paper addresses some of the financial risk hedging mechanisms available to a corporation contemplating entering the mining business at a significant level of investment. The approach which I have adopted is that of a case study relating to the risk hedging aspects of Brascan Limited's acquisition of 46% of Noranda Inc., formerly Noranda Mines Limited, followed by some remarks on options open to mining companies for reducing financial risks. To appreciate the rationale for Brascan committing over (Can.) $800 million to the natural resource sector, some knowledge of Brascan's parent company, Edper Investments Ltd., is required at the outset. Edper Investments, prior to acquiring a 48% interest in Brascan, controlled Trizec Corporation, one of the world's largest property companies. Edper also was involved in the financial services sector through Continental Bank of Canada and Hees International Corporation. For some considerable time prior to Edper's investment in Brascan, Edper felt a need to provide a better balance to its portfolio of property and financial services. Brascan was rich in cash, relatively unleveraged, and with important existing holdings in natural resources and consumer products. The acquisition of a controlling interest in Brascan provided an opportunity to balance Edper's portfolio of property and financial services with world class acquisitions in natural resources, supplemented by consumer products and financial services. The end result of Brascan's activities over the last few years is illustrated by the following analysis of the book value of Brascan's assets at the end of December 1983. [Can.$% Millions _ Natural Resources81748 Consumer Products 654 38 Financial Services 157 9 Other Operations895$1,717100% ] Source: Brascan 1983 Annual Report. The large emphasis on natural resources came about from the fact that for Canadians operating mainly in Canada, natural resources were attractive. We were impressed by Canada's position in the world natural resource industry as illustrated by some of the following statistics: [CommodityCanadian Estimated Production In 1983 As % of World Total Newsprint 30 Potash 21 Uranium 18 Molybdenum 17 Zinc 17 Pulp 16 Nickel 16 Saw Logs 11 Silver 8 Copper 7 Lead 6 Gas 5 Oil3] Source: U.S. Bureau of Mines and Brascan estimates. In addition, the quality of Canada's reserves looked good to us. The polymetallic nature of many of Canada's orebodies offered a hedge against risk relating to any one metal. Put another way, the by-product metal credits offered a net operating cost advantage with respect to many of the metals mined. Our energy costs also appeared to provide Canada's natural resource industries with an advantage. We considered Canadian mining expertise as amongst the world's finest, as were the exploration equipment and technology developed in Canada. In addition, Canada offered a stable political climate and one we knew. Further, we felt the Canadian Government's future role in the industry would, on balance, be benign, partly because the Canadian content of the mining industry was very high in contrast to the petroleum industry. Granted, we could find cheaper sources of copper; however, to do so would involve venturing into regions where country risks were higher.

Jan 1, 1985