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By E. Kendall Cork

The traditional financial objective for a single mine company has been to operate as frugally as possible and to pay out most of the earnings as dividends. If the business is cyclical (as it is for most metals) the dividends might fluctuate quite widely. When the mine is exhausted the company disappears. This is still quite a viable strategy for a single mine company. It is not however a viable strategy for the world as a whole. The mining industry is built by mine development companies who can mobilize the people and capital to bring new mines into production. Their skills must include marketing, engineering, finance and other politics. It is very rare for a property to be brought in without the support of a major company that can provide all these services. The exceptions will usually have some other form of big brother support, for example the U.S. government uranium contracts at guaranteed generous prices. The mine development company will seek as a minimum to perpetuate itself by developing new mines in order to replace those which are running out. The more common and more ambitious objective is to grow -- that is to add to its ore reserves and current production by developing more new mines. The financial objectives for that company are very different. Obviously if all the earnings were paid out in dividends there would be nothing left to work with. The first financial policy then is to spend an appropriate amount on exploration for new properties. The next is to retain enough of the earnings to provide the capital for new projects at least sufficient for the equity. There is no magic formula as to what proportion of earnings should properly be distributed as dividends by a growth-oriented mine development company. As a rough rule of thumb distributing half or more will probably leave too little to work on and 30% or so is probably a good balance. However the circumstances differ widely from company to company. It may be useful to set an objective for the rate of growth of a company's earnings. Some have picked rates such as 15% per annum compounded. Others have set a target in real terms which might appear as 10 or 11% plus inflation. Obviously the arithmetic of compound interest is very attractive; however in practice there is much variation. Indeed current returns from existing operations swing widely with the business cycle and there is no assurance that economic new properties will be found according to someone's arbitrary time schedule. For example, Western Mining Corporation Limited in Australia explored for 30 years with little to show for it, but then found the great Australian nickel deposits and more recently the huge Roxby Downs copper. That long dry spell could not have fitted anyone's arbitrary calendar of growth and yet they would not have found such orebodies without that long period of effort. Should they have abandoned the search? Once a new property has been found or acquired there has to be a threshold rate of return on the new capital to be invested against which to evaluate the property's economics. Conventionally this seems to be 15% after tax, a number common in other heavy industries as well. In some cases it is expressed as a lower number plus allowance for inflation. Discounted cash flow analysis is a very useful tool but it does not make the decision. In the end a "go" decision depends on judgment of many factors some of which are numbers used in the DCF calculation whose credibility must be examined. It is curious how frequently investment proposals come in with the rates of return very close to 15%. The project advocates know that a number much less than 15% will not fly and that a number much more is not necessary. With much higher nominal and real interest rates of recent years, even though before tax, logic suggests that the hurdle rate should also rise. The power of compound interest is so great that 20% is very hard to achieve in any cash flow projection but 18% may be a sensible yard - stick. Once again it is remarkable how many project proposals come in with an 18% return. On the record the mining industry as a whole has not been overly restrictive in choosing its hurdle rates of return. This is shown by the abundance of metals in recent years and the failure of metal prices to keep up with inflation. All of the foregoing is standard text book stuff.

Jan 1, 1985

By Fred C. Bond

SIX years have passed since the last grindability table was published.1 In that time the list has been increased with many new tests, and the development of the new Third Theory of Comminution2 has made possible the reduction of all results to a consistent work index value. In this tabulation all grindability and crushability test results are given in terms of the work index, with formulas for reversion to the older units if desired. The average values for 57 different classes of materials are listed in Table I. The total number of work index values listed is 1211, and the overall average work index is 14.42.

Jan 3, 1953

PRESIDENT E DEGOLYER, District 0 NEW YORK, N Y PAST PRESIDENTS J V. W. REYNDERS, District 0 NEW YORK, N Y SAMUEL A TAYLOR, District 3 PITTSBURGH, PA FIRST VICE-PRESIDENT GEORGE OTIS SMITH, District 4 WASHINGTON, D C TREASURER CHARLES F. RAND NEW YORK, N Y SECRETARY H. FOSTER BAIN NEW YORK, N Y

Jan 1, 1923

By G. K. Zaharlev

With a productive output growing at an annual rate of 8%, the Soviet mining industry should emerge as the world's leader in total mineral output during the 1980's. (The Soviet Union's share in the world's total mineral output in 1973 was estimated at 22 to 23%.) According to estimates by Soviet mining experts, the mineral potential of the Soviet Union will sustain the current 8% annual growth rate in the future.

Jan 12, 1974

By Clyde Williams

IN this war as in no former one, the use of metals has been the major factor governing success. For building new plants, new transport facilities whether by land, sea, or air, for our mechanized army, and for nearly all weapons, iron and steel has provided the basic material. Being the world leader in iron and steel production in peacetime, we soon adapted plants to production for war. Starting with a production of 66,000,000 tons of steel ingots in 1940 from a rated capacity of 80,000,000 tons which only could be reached by straining every productive device available, our industry expanded to 86,000,000 tons in 1942, and ultimately to 96,000,000 tons. To do so required expansion of every unit operation including mining, rail and water transportation, blast-furnace and steelmaking facilities, and rolling mills. New plants not only had to be built in record time but more output for each operation was essential. This performance required skillful operation and engineering techniques and also a better understanding of the physics and chemistry underlying such complex operations as the working of a big blast furnace. A vastly increased pig iron production made possible the great output of steel by an industry that had depended on scrap for its basic raw material even though sufficient scrap was unavailable. This was done by conversion of pig iron in the Bessemer either into steel or into a low-carbon product that was subsequently used in place of scrap in the open¬hearth steel furnace. Furthermore, by duplexing from the open-hearth to the electric furnace, and the construction of many new electric furnaces, our output of electric-furnace alloy steel was greatly increased. Moreover, techniques were developed by which alloy steel could be made in the open hearth with the result that our production of alloy steel reached the fantastic figure of 15,000,000 tons a year.

Jan 1, 1945

By R. C. Ellman

In the United States, the consumption of lignite and subbituminous coals is increasing. A variety of energy-oriented companies have leased large blocks of reserves, new large power plants are in operation and being constructed, and new producing mines are being developed. The Bureau of Mines has maintained an active interest in the utilization of low-rank coals for many years. In 1951, with the completion of the Bureau's Grand Forks Coal Research Laboratory, an organizational unit was established for studies in lignite preparation. Since that time, numerous investigations have been completed. This research has dealt almost exclusively with lignite, but since subbituminous coals have many similar characteristics, the findings can often be applied to both types of coal.

Jan 1, 1970

Bill S.1431 for the creation of a Department of Natural Resources has received a propitious hearing before the Senate Committee on Government Operations. Interior Secretary Rogers C. B. Morton was one of the prominent witnesses who testified in favor. The department had been proposed, Morton said, with "the conviction that the development of all natural resources would be harmonized with the most practicable possible means to protect and preserve the environment, consistent with the social and economic needs of the Nation." Another opinion on the pro side came from Atomic Energy Commissioner Clarence E. Larson, who said that a "total picture" had become essential to the establishment of a policy for developing energy resources in the best public interest. Commissioner James T. Ramey, on the other hand, was one of the AEC dissenters. Ramey said he believed the reorganization of resource responsibilities would hinder efforts to deal with energy-environmental problems and prevent the use of AEC "expertise and facilities" to the greatest advantage. As Arnold Weber, associated director of the Office of Management and Budget, pointed out, however, retiring AEC Chairman Glenn T. Seaborg is in favor of the new department. Another supporter, and one who can cast a vote on the bill, is Sen. Frank E. Moss. Final Standards for emissions from new stationary sources will be published by the Environmental Protection Agency on October 27. The initial proposals, appearing in the Federal Register on August 17, called for limiting emissions per million Btu of heat input (maximum 2-hr average) to 0.2 lb of particulate matter, and, where solid fuel is burned, to 1.2 lb of sulfur dioxide and 0.7 lb of nitrogen dioxide. While the new rules are mainly for new plants, the EPA is also proposing them for "existing plants which are modified in such a way as to increase or alter. . . their emissions."

Jan 1, 1971

A new $18-million hydrometallurgical ore treatment facility for the recovery of molybdenum oxide was dedicated at Climax, Colo., on November 19 by Climax Molybdenum Co., division of AMAX. The Company has been producing molybdenum from molybdenite (MoS2) ores since 1918. Now oxide values, formerly lost in the sulfide flotation plant tailing are to be processed to yield about 3 million Ib per year of metal. In 1965, Climax produced about 50% of world molybdenum from sulfide ore. This ore is mined at the rate of 42,000 tpd. The annual production of concentrate is 100 million lb containing 90% to 92% MoS2, or about 50 million lb of metal. As only a relatively small portion of the total Climax production is sufficiently enriched in oxide molybdenum to process through the new plant, 5700 tpd of selected ore containing 1.5 lb of Mo per ton is now treated by the new process.

Jan 12, 1966

By Charles A. Ashburner

[The statistics contained in this paper were collected for the United States Geological Survey and communicated to the Institute, by permission, prior to their publication in the report on the Mineral Statistics of the United States for 1887.1 The total coal-production of Alabama in 1887 was about 1,950,000 short tons, the spot-value of which, at the mines, was $2,535,000. The coal-regions of the State lie in the extreme southern part of the Appalachian coal-field, the northern part of which lies along the western New York-Pennsylvania State line; between these limits, New York on the north and Alabama on the south, portions of the

Jan 1, 1889

By Joseph A. Holmes, Henry Kreisinger

At the Mining Experiment Station of the U. S. Geological Survey, in Pittsburg, an investigation of the process of combustion is being carried on in a specially-designed furnace having an unusually long combustion-chamber. This work is conducted by a con~mittee consisti~lg of 11. Kreisinger, mechanical engineer; Dr. J. C. W. Frazer, chemist; and Dr..J. K. Clement, physicist. The problem, essentially one of physical chemistry, is estremely interesting to all who are concerned in the burning of coal or the construction of furnaces. The main object of these experiments is to ascertain the relation between the amount of' the volatile combustible driven from the coal and the combustion-spaces necessary to burn it completely. Our best steam-coals vary from 15 to 45 per cent. in volatile matter and from 40 to 75 per cent. of fixed combtistible. The greater part of the latter is burned on the grate: but the volatile combustible leaves the freshly-charsed coal and must be burned in the combustion-space. If this space is not large enough, the volatile combustible mill leave the furnace only partly burnecl, and the result will be a considerable heat-loss and a smoky stack. Strictly speaking, the factor which determines the completeness of combustion of the volatile matter, after it has been mixed with a certain amount of air, is the length of time the mixture is allowed to remain in the combustion-space; but this length of time depends on the extent of the space itself. Let us suppose, for instance, that, when a given coal is burned at a certain standard rate, the volume of the volatile combustible driven oft' per second is 10 cu. ft. Adding, say, 10 cu. ft. of air, the volume of the resulting burning mixture is increased to 20 cu. ft. If the combustion-space is 30 cu. ft., the burning mixture will stay in it,

Jan 1, 1911

By American Institute of Mining Engineers

David J. Mack (University of Wisconsin, Madison, Wise.)—Have the authors considered that the effects reported in their paper are readily explainable on the basis of equilibrium grain boundary segregation rather than ordering? It seems to the writer that all of their experiments and observations correlate well with known behavior associated with equilibrium grain boundary segregation. Although at first glance one would tend to dismiss such a possibility because of the similarity of the gold and copper atoms, their sizes differ by 12.8 pct which is in the range where segregation at grain boundaries would be expected. Then, too, the electrochemical differences between the copper, the Cu3Au, and the gold strongly suggest that a segregation mechanism is involved in the corrosion of the Cu-Au alloys. R. Bakish and W. D. Robertson (authors' reply)—The authors would like to thank Dr. Mack for his consideration of the problem of grain boundary segregation as an explanation of the observed phenomena. We had considered the problem in the following terms: Assuming a pure binary Cu-Au alloy and an ideal solid solution, the surface excess, T2= N25 — N2, of the second component (gold) may be expressed in the following way20 1 —exp (—da/kT) where 8 is the difference in surface tension of copper and gold, and a is the surface area per atom. In the present case, 6 is positive which implies that the component in excess at the boundary is gold. Since the only chemically active component in ferric chloride is copper, it does not appear that the segregation of gold is likely to increase the boundary activity. A small concentration of a third component could profoundly affect the situation. Analysis indicated only spectrographic traces of impurities, all of which are soluble in both copper and gold. Quenching experiments, reported in the paper, also tended to eliminate significant effects attributable to a third component.

Jan 1, 1958

1. How Does One Determine Whether an Ore Body Will Block-cave? Page Mark A. Smith......... 122 Harry A. Leidich........ 122 McHenry Mosier ...,.. 22 R. W. Hughes ........ 122 Sherman R. Burdick ....... 123 R. T. Gallagher........I 23 Benjamin F. Tillson...... 123 Lucien Eaton...........123 C. F. Jackson..... . .. 123 Philip B. Bucky........... 126 2. How Does One Determine the Block Dimensions and the Development Work Necessary to Make an Ore Body Cave? Mark A. Smith... 125, 127, 129 Harry A. Leidich..........126 McHenry Mosier......126, 127, 132 R. W. Hughes...........126 Sherman R. Burdick.........127 R. T. Gallagher...........127 Benjamin F. Tillson......127,131 L. E. Young............127 Robert D. Hoffman.......128, 132 Gerald Sherman..........128 Philip B. Bucky......130, 131, 132 K. S. McClellan..........132 Tell Ertl.............132 3. How Do the Forces Act and What Are the Stresses Developed in a Block That Cause It to Block-cave? Mark A. Smith.........132, 135 Harry A. Leidich........133 McHenry Mosier . .. 133 R. W. Hughes ....... 133 Sherman R. Burdick..... . 133 R. T. Gallagher..........134 C. F. . Price, Jr. ........134 Benjamin F. Tillson.........134 C. F. Jackson......134, 135,137 R. Taborelli...........135 Frank A. Ayer ... .....136 Philip B. Bucky . .........136 Rollin Farmin . . .......136 . . . Weysser.....135, 136, 137 George S. Rice...........137 4. What Determines the Procedure in Removing Caved Ore? Harry A Leidich...........137 McHenry Mosier........137,141 R. W. Hughes...........137 Sherman R. Burdick........138 R. T. Gallagher...........138 Mark . Smith...........138 Philip B. Bucky......140,141,143 C. F. B. Price, Jr..........140 R. H. Bennett...........141 C. F. Jackson..........141, 143 Gerald Sherman..........141 Tell Ertl.............141 .. .. ..................143 C. H. Shoemaker..........143 5. What Are the Criteria for Determining the Efficiency of a Block-caving Operation? Harry A. Leidich.......... 143 McHenry Mosier......... 144 R. W. Hughes........... 144 Sherman R. Burdick.......144 R. T. Gallagher . ......... 144

Jan 1, 1946

By H. H. Reamer, B. H. Sage

Attempts have been made to predict the volumetric and phase behavior of naturally occurring hydrocarbon mix-turesl-6 but these methods have not been extended to the higher pressures and tem-peratures that are currently encountered in some producing formations. Furthermore, the methods of prediction at present avail-able have not been tested in a sufficient number of cases to ensure their applica-bility to all naturally occurring hydrocar-bon mixtures, even at the lower pressures and temperatures. For these reasons the behavior of a number of hydrocarbon mix-tures from a field in which the subsurface pressures are above 4500 lb. per sq. in.t and the temperatures are in the neighbor-hood of 250°F. was investigated. Method The objective of this program was to determine the volumetric behavior of ma-terial as it existed in the reservoir as a function of pressure, temperature and com-position. Strictly speaking, this cannot be accomplished in any simple fashion. How- ever, the variations in composition that are encountered within a producing reservoir may be approximated roughly by means of mixtures made up of two arbitrarily chosen constituents. Experience indicates that the liquid and gas phases from a high-pressure gas trap afford a simple source of material for this purpose. Throughout this discus-sion the samples of the gas phase and liquid phase from the production trap will be called the "trap-gas sample" and the "trap-liquid sample," respectively. The volumetric behavior of both of the trap samples was determined throughout the temperature interval between 100" and 250°F. at pressures up to 5000 lb. per sq. in. In addition, the behavior of eight different mixtures containing varying proportions of the two trap samples was studied throughout the same temperature and pressure intervals. The experimental results yielded information concerning the specific volume of the material as a function of pressure, temperature and the relative quantity of the trap samples. The relative amount of each of the paraffin hydrocarbons of lower molecular weight than n-hexane was determined for each of the trap samples. In addition, the specific weight, viscosity and average molecular weight of the hexanes-and-heavier fraction of the trap-liquid sample were determined as well as similar information for each of five fractions separated from this material by distillation. From these data the weight fractions of each of the components from methane through pentane were determined for the trap samples and eight systematically chosen mixtures. Materials The gas and liquid samples were obtained from the production trap of a well in the Rio Bravo field in California during the fall of 1939. Information concerning the condi- 70

Jan 1, 1941

By H. H. Reamer, B. H. Sage

Attempts have been made to predict the volumetric and phase behavior of naturally occurring hydrocarbon mix-turesl-6 but these methods have not been extended to the higher pressures and tem-peratures that are currently encountered in some producing formations. Furthermore, the methods of prediction at present avail-able have not been tested in a sufficient number of cases to ensure their applica-bility to all naturally occurring hydrocar-bon mixtures, even at the lower pressures and temperatures. For these reasons the behavior of a number of hydrocarbon mix-tures from a field in which the subsurface pressures are above 4500 lb. per sq. in.t and the temperatures are in the neighbor-hood of 250°F. was investigated. Method The objective of this program was to determine the volumetric behavior of ma-terial as it existed in the reservoir as a function of pressure, temperature and com-position. Strictly speaking, this cannot be accomplished in any simple fashion. How- ever, the variations in composition that are encountered within a producing reservoir may be approximated roughly by means of mixtures made up of two arbitrarily chosen constituents. Experience indicates that the liquid and gas phases from a high-pressure gas trap afford a simple source of material for this purpose. Throughout this discus-sion the samples of the gas phase and liquid phase from the production trap will be called the "trap-gas sample" and the "trap-liquid sample," respectively. The volumetric behavior of both of the trap samples was determined throughout the temperature interval between 100" and 250°F. at pressures up to 5000 lb. per sq. in. In addition, the behavior of eight different mixtures containing varying proportions of the two trap samples was studied throughout the same temperature and pressure intervals. The experimental results yielded information concerning the specific volume of the material as a function of pressure, temperature and the relative quantity of the trap samples. The relative amount of each of the paraffin hydrocarbons of lower molecular weight than n-hexane was determined for each of the trap samples. In addition, the specific weight, viscosity and average molecular weight of the hexanes-and-heavier fraction of the trap-liquid sample were determined as well as similar information for each of five fractions separated from this material by distillation. From these data the weight fractions of each of the components from methane through pentane were determined for the trap samples and eight systematically chosen mixtures. Materials The gas and liquid samples were obtained from the production trap of a well in the Rio Bravo field in California during the fall of 1939. Information concerning the condi- 70

Jan 1, 1941

By A. K. Sinha

The annual production and productivity of underground coal mines in recent years declined from 334 Mt (368 million st) and 14.5 t (16 st) per man per shift in 1969 to approximately 254 Mt (280 million st) and less than 8 t (9 st) per man per shift in 1977. Productivity is still hovering at about 7.25 t (8 st) per man per shift. According to US Bureau of Mines, the estimated US coal reserve is about 396 Gt (437 billion st), 68.65% of which is obtainable by underground mining methods. Approximately 153 Gt (169 billion st), or about 85.2% of the high Btu premium coking coal of the eastern US, would need to be extracted by underground mining methods. It is thus apparent that under- ground mining will continue to play a major role in total US coal production, which is expected to rapidly increase to about 1.1 Gt (1.2 billion st) by 1985, with about 606 Mt (668 million st) being contributed by underground mines. Production Potential of Continuous Mining The production potential of a continuous mining section depends primarily on the producing ability of the miner, transporting ability of the face haulage, and the matching of the two systems. The producing ability of the continuous miner depends on its actual cutting ability and the time available for cutting coal. The performance of 10 continuous miners operating in coal seams of various thicknesses were monitored in Pennsylvania and West Virginia, using continuous electrical power analyzers and time studies. The recordings on current and power strip charts yielded an accurate analysis of the cutting, trimming, and idle times of the machines on a full shift basis. Continuous miners of various models and sizes from 112-298 kW (150-400 hp) were monitored. Based on actual cutting time, the average cutting ability of the machines, as shown in [Fig. 1], ranged from

Jan 1, 1983

By Lucius W. Mayer

The iron-mines of the Ilsede Hutte Co. are at a town called Peine, about 20 miles east of the city of Hanover, on the railroad to Brunswick (Braunschweig). Hanover, the capital of the province, is a military city, of approximately 250,000 inhabitants, and Brunswick, 33 miles to the westward, has half this number. The mines here described are located in a hamlet called Bulten. The Ilsede Hutte Co. operates two mines, 1.5 miles apart, in this district, Gruber Bulten Adenstadt and Gruber Lengede Bodenstadt. It also operates an iron-mine north of Hanover, known as Eiserhaven, and one in the Harz mountains, the Georg Friedrich, at Grauhof. At Bulten a coarse conglomerate, a, Figs. 1 and 2, contains nodules of limonite, cemented together by calcium phosphate. The ore contains Fe, 25 to 45; Mn, 3 to 4; P, 0.6 to 1.4; '5, 0.02 to 0.09; and CaCO,, 40 per cent. Directly above the conglomerate is limestone, 6, followed by a mixture of clay and sand, c. Below the conglomerate is a hard clay floor, d. The ore-body, from 10 to 12 km. long, and from 3 to 4 km. wide, has a maximum thickness of 20 m. It dips approximately 10" S.E., and strikes K 45° E. Diamond-drill prospecting shows that the thickness diminishes to 1 m. as the end of the deposit is approached to the northward. At this point the deposit is 250 m. below the surface. In Fig. 2, the arrow, A, indicates the general direction of the work along the face, a, which is carried forward in a straight line for its entire length. At B, a train is approaching, which has come from the bench-track, shown at C, by a circuitous route, and is dumping the overburden behind the face, in the space left by the excavated rock. Formerly the work at this mine mas essentially open-cut, the deposit having a very strong outcrop. Figs. 1 and 2 show also

Jan 1, 1909

By C. W. Dunham

FROM the primary gyratory crushing plant, described in MacLeod's article, ore is delivered to a large storage or surge bin from which it is carried by two transverse conveyors to the secondary crushing plant. The bin has a useful drawoff of about 13,000 tons, this being slightly over one half of the initial daily capacity of the Morenci Reduction Works. This arrangement provides sufficient storage to permit intermittent operation of the primary and secondary crushing plants without too close a coordination between the two.

Jan 1, 1942

By H. W. Hindry

This paper presents the ingredients com-~osing a type of oil-base mud that has been successfully used in drilling oil horizons in California, the effect of ingredient concentrations on physical properties, methods of handling at the well and possible advantages of a waterless drilling fluid with excellent plastering properties. Introduction An oil-base mud is a rotary drilling fluid in which oil has been substituted for water as the principal liquid ingredient. In recent years such a mud has been developed and used successfully for drilling the oil horizons of wells in various Calilornia fields. There are several types of oil-base mud, but only the type that is currently used to any appreciable extent will be considered at this time. The oil-base drilling-mud compositions used by Shell Oil Company, Incorporated have been covered by several patent applications on which patents are expected to issue at an early date. The purpose of this paper is to present data on the fundamental design of the mud; the ingredients used and their specifications; the effect of ingredient concentration on physical properties; the selection of the proper mud; the facilities needed for handling the mud; and a general discussion on drilling with oil-base mud. In view of the early stage of development of oil-base mud, the great number of vari- ables, and the almost unlimited possible combinations of these. variables, which in turn require extensive laboratory study, there are certain irregularities and omis. sions in the data presented here. However, it is believed that sufficient data are at hand to permit a fairly complete analysis of the characteristics of oil-base muds. In view of the excellent plastering properties of oil-base mud when properly proportioned, its use should: (I) minimize the possibility of impairing the natural flow potentialities of the producing horizon such as that resulting from infiltration of water from water-base muds; (2) permit smaller clearances for setting liners, since the mud sheath has no appreciable thickness; (3) eliminate the possibility of clogging the perforations of the liner with thick mud sheath; (4) facilitate the removal of the mud sheath from the walls of the hole, for its mud sheath has no appreciable strength; (5) assist in drilling through formations, such as "heaving shale," where water wetting appears to be a source of difficulty. (6) permit cores to be obtained without contamination from drilling water. Fundamental Design of an Oil-base Mud In the design of any rotary drilling mud it is necessary to select materials that will fulfill the following requirements: (I) act as the liquid medium and regulate the viscosity; (2) impart initial and final plastering properties; (3) give gel strength and structure in order to prevent settling; (4) serve as a weighting material. The

Jan 1, 1941

By H. W. Hindry

This paper presents the ingredients com-~osing a type of oil-base mud that has been successfully used in drilling oil horizons in California, the effect of ingredient concentrations on physical properties, methods of handling at the well and possible advantages of a waterless drilling fluid with excellent plastering properties. Introduction An oil-base mud is a rotary drilling fluid in which oil has been substituted for water as the principal liquid ingredient. In recent years such a mud has been developed and used successfully for drilling the oil horizons of wells in various Calilornia fields. There are several types of oil-base mud, but only the type that is currently used to any appreciable extent will be considered at this time. The oil-base drilling-mud compositions used by Shell Oil Company, Incorporated have been covered by several patent applications on which patents are expected to issue at an early date. The purpose of this paper is to present data on the fundamental design of the mud; the ingredients used and their specifications; the effect of ingredient concentration on physical properties; the selection of the proper mud; the facilities needed for handling the mud; and a general discussion on drilling with oil-base mud. In view of the early stage of development of oil-base mud, the great number of vari- ables, and the almost unlimited possible combinations of these. variables, which in turn require extensive laboratory study, there are certain irregularities and omis. sions in the data presented here. However, it is believed that sufficient data are at hand to permit a fairly complete analysis of the characteristics of oil-base muds. In view of the excellent plastering properties of oil-base mud when properly proportioned, its use should: (I) minimize the possibility of impairing the natural flow potentialities of the producing horizon such as that resulting from infiltration of water from water-base muds; (2) permit smaller clearances for setting liners, since the mud sheath has no appreciable thickness; (3) eliminate the possibility of clogging the perforations of the liner with thick mud sheath; (4) facilitate the removal of the mud sheath from the walls of the hole, for its mud sheath has no appreciable strength; (5) assist in drilling through formations, such as "heaving shale," where water wetting appears to be a source of difficulty. (6) permit cores to be obtained without contamination from drilling water. Fundamental Design of an Oil-base Mud In the design of any rotary drilling mud it is necessary to select materials that will fulfill the following requirements: (I) act as the liquid medium and regulate the viscosity; (2) impart initial and final plastering properties; (3) give gel strength and structure in order to prevent settling; (4) serve as a weighting material. The

Jan 1, 1941

By Ian J. Smalley

"Quickclay is an extreme case, it is by far the most mobile of all the common solid materials on the earth's surface. It has both a high water content and a mineral texture that allows it to flow with the utmost ease. A mass of quickclay that has lain undisturbed for thousands of years can be jarred into motion by any sudden shock." The quotation is from the paper by Kerr called, "Quickclay," which was published in Scientific American in 1963. This was probably the most widely read paper on quickclay ever published. It was reprinted by Fred Betz in his Benchmark collection on Environmental Geology (BM 25), A quickclay is an extremely sensitive soil. The sensitivity parameter is produced by dividing the undisturbed shear strength by the remoulded shear strength. If a value greater than 50 is obtained, then the soil can be classified as a quickclay. True quickclays are characterized by a very low remoulded strength of the order of 0.5 kPa. The classic quickclays are found in Scandinavia and Eastern Canada, but the 1964 Alaska earthquake revealed a considerable quick¬clay deposit underlying the town of Anchorage. This was discussed in a classic paper by Kerr and Drew in Engineering Geology in 1967. The Kerr views on quickclays were perhaps most clearly expressed in the paper with Liebling in Geol. Soc. Amer. Bull. in 1965. They suggested that the major critical conditions which contribute to quickclay movement are: substantial quantities of layer lattice silicates of colloidal size (about 40% or more by dry weight), sub¬stantial pore water (44%), a reduction in electrolyte concentration below 5 g/l of salt, and addition of a dispersant. There is still discussion and disagreement about the nature of quickclays and the mechanisms of quickclay slides; the "clay mineral"-based views favored by Kerr still find support, although an alternative "primary mineral" view suggests that it is the finely ground primary minerals

Jan 1, 1985