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By P. B. Baxendell

The appraial of producing properties and profitability ntzalysis of a proposed capital expenditure are based on the same principles. In both problems a projection of future cash income is. cornpared to one or more capital expenditures. Several different methods have been in use either to compute a price to obtain a given earning power on the investment or to compute the earning power which will result from a given capital expenditure. One of these, the "Average Annual Rate of Return" method, computes in a simple manner the ratio of the present value of the future earnings after amortization to the present value of the undepreciated balances of the investment over the life of a project. This method, not well known generally, appears to have some rather unique advantages in reducing the computation work required, eliminating trial-and-error solutions, and providing a more accurate answer when applied to oil industry investments subject to the unit-of-production basis of amortization. Its derivation is given and its versatility demonstrated in the solution of certain everyday investment problems. A number of charts, useful in applying this method to profitability analysis and appraisal work, are provided. The current trend in the market values of producing properties is shown. INTRODUCTION Making sound capital expenditure decisions requires an objective means of measuring the productivity of individual investment proposals. Since the best measure of the economic worth of such proposals is their ability to produce profits, it is common practice to grade proposed capital expenditures according to their annual earning power as a percentage of the outstanding capital. The same principles which govern the determination of the rate of return of proposed capital expenditures also apply generally to the problem of determining the appraisal value or purchase price of income-producing oil and gas properties. Both problems are of prime importance in the producing phase of the oil business, where management is faced daily with decisions to drill or not to drill certain development wells, or with the determination of the appraisal value of producing properties. The common feature in both problems is that a projection of future cash income is compared with a known or estimated capital investment to determine itsiearning power or annual rate of return. In the case of development drilling, the cost of the proposed well can usually be estimated with a fair degree of accuracy and the problem consists of finding the rate of return on the invested capital. In the case of appraising producing properties, on the other hand, the desired rate of return is usually known in advance and the problem consists of determining the purchase price which, for the given income projection, results in the fequired rate of return. Certain accounting procedures common to the oil and gas producing business make these two problems and their solutions somewhat different from corresponding problems in other industries, and, in certain ways, simpler. The main difference is in the amortization policy which, for oil and gas production, is frequently on a unit-of-production basis, compared to the amortization on a time basis used in many other industries. The purpose of this paper is to discuss briefly the various methods currently in use for the measurement of productivity of invested capital in producing properties and, in more detail, the derivation and application of what will be called the "Average Annual Rate of Return Method". This rather interesting and not too well known method has some very definite advantages in the solution of many problems common to the oil industry. For the sake of simplicity, federal income tax considerations have been disregarded in the examples used, since they do not affect the principles involved. The use of the production payment route in the sale or purchase of producing properties, which has been amply covered in many other publications, has also not been included in this analysis. METHODS FOK MEASUKING THE EARNING POWER OF INVESTED CAPITAL, Of the many different methods used to measure the earning power of invested capital, four are applicable to oil or gas production ventures. Depending on whether these four methods utilize one or two interest rates, and whether a fixed amortization pattern is used, they may be classified as follows.

By Harold E. Marr

The computer program XRF4 was designed by the Bureau of Mines to provide for the calculation of several different interelement correction procedures in X-ray fluorescence analysis, including Lachance-Traill, Rasberry-Heinrich, and Claisse-Quintin procedures. The program was written in the BASIC language for timesharing application, and a conversational interaction with the computer is employed during operation. This report presents test problems using data for iron-nickel-chromium alloys and aluminum alloys and directions for use of the program.

Jan 1, 1976

By W. R. Ingalls

IF, in this study of the outlook for the copper industry of the United states, I find myself assuming to be prophetic in some respects I shall express myself with hesitation and with the foresight that after the end of the war with Germany the war with Japan may continue; anyway there is sure to be an uneasy period before copper and the other metals begin to flow smoothly through the natural channels of consumption. It is mainly my purpose to survey conditions and suggest some probabilities, or possibilities, rather than to prophesy. In interpreting them it will be necessary to make certain aasurnptions, among which will be (1) expectation of a rise in the general price level,, which so far has been one-sided; (2) continuance of the k. tariff on copper imports; and (3) lock-up of government-owned copper as a military re- serve. Of these assumptions the first is indicated by the lessons from economic history, and by current symptoms. The second and third depend upon political action by Congress.

Jan 1, 1944

By McMillan W. D.

Vermiculite is the name of a group of micaceous minerals characterized by their property of exfoliating when heated and thereby increasing many times their original volume. The resulting product has excellent heat-and sound-insulating properties, is used as a lightweight aggregate, and has numerous other industrial applications. Deposits of vermiculite occur in areas of pre-Cambrian rocks of the Llano uplift of central Texas, particularly in Burnet and Llano Counties. Because of the growing economic importance of vermiculite products, the Bureau of Mines undertook a detailed investigation of several deposits in Llano County. This investigation was completed in February 1947. The work comprised topographic surveys of five deposits, drilling with a 4-1/4 inch Parmanco power auger drill, and laboratory evaluation of samples. 342 drill holes, aggregating 4,905.5 feet, were completed, and 377 samples were taken. Laboratory evaluation of the vermiculite comprised expansion tests on both crude and beneficiated samples. The products obtained were compared with commercial-grade vermiculite from Montana.

Jan 1, 1949

By Wern-ping Chen

Technical and non-technical challenges exist in each mega infrastructure project. It?s no exception to the first US underground PPP Port of Miami Tunnel (POMT) project in Miami, FL. The POMT will connect two man-made islands, the Dodge and the Watson Islands, under the Biscayne Bay within highly porous limestone formation. Permeability as high as 0.1 cm/sec has been identified. Its 41-ft outside diameter, if constructed, is the largest precast segment lining in the US. Besides its geological and hydro geological challenges and risks, local community influence and impacts have controlled the fate of this project. This paper describes its tender design enhancements and the evolving of its slow advancement in resolving local community issues.

Most people are familiar with Euclidean dimensions: zero for a point; one for a line; two for a plane; and three for a volume. Howeverbobjects are not actually Euclidean, but lie somewhere between Euclidean æend-membersÆ with a non-integer fractal (or æfractionalÆ) dimension. The fractal dimension D is a measure of the relative importance of large versus small. Consider the trace of a coastline on a map. It has a fractal dimension (1 =D =2) somewhere between a line (dimension = 1) and a plane (dimension = 2). The more tortuous the coastline, the higher the fractal dimension, and the closer it becomes towards a plane. The concepts of fractals and spatial geometry can be applied to a wide range of geologicaVmining problems as well as than those dealing with space. One commonly quoted fractal relation is the log-log relationship of ore-grade and tonnage. Until recently, we have never been able to define or measure spatial-geometry, but new developments in mathematics have provided a means by which to quantity and apply it to our problems.

Jan 1, 1992

By I. R. Hanby

A simple but comprehensive method has been developed for the simulation of a mechanical-drive dump truck that enables various parameters to be predicted as a function of time throughout its whole cycle. Uses of the simulation results are indicated with specific attention to environmental and operational or economic planning. The output of a sample run is presented. The method can be easily adapted for the investigation of a wide variety of mobile plants.

Jan 4, 1992

Recent legislation in the environmental field gives the mining industry an opportunity to take timely action to address its image. Shifting the focus away from mining (the activity) to minerals (the resource) will enable the mining industry to stand on equal footing with other industries and will help minimise the vulnerability to political and interest groupsÆ interference.

Jan 1, 1993

By W. P. Diamond, S. L. Cario, F. Garcia, J. D. Byars, T. P. Mucho

The National Institute for Occupational Safety and Health (NIOSH) has been conducting research at a Pittsburgh Coalbed longwall mine to evaluate and optimize bleeder ventilation and gob gas venthole longwall methane control systems. Gas flow into these two methane control systems was investigated using a combination of Sulphur Hexafluoride (SF6)tracer gas studies and gob venthole pressure monitoring experiments. The insights gained from this research has facilitated the development of a longwall subsided strata methane control system conceptual model. This model provides the basis for design suggestions to increase the efficiency of the gob gas venthole system to permit the bleeder ventilation system to become a "safety net" for methane control.

Jan 1, 2000

By S. Klingmann

ABSTRACT In this paper, we used data collected from the Gibraltar mine to analyze the effect of the TyreSense tire monitoring system on tire performance by reducing tire wear and preventing premature tire failure or damage. We analyzed the relationship between tire temperature, tire pressure, and tire failure or damage to help better understand the importance of controlling high tire temperature and pressure. The results enhance and expand the knowledge of the management of tire operational pressure and temperature.

Jan 1, 2014

By B. J. Arnold, N. Terblanche

The features of the ‘Turbo’ froth flotation column will be discussed, including the double aeration system that improves flotation yield while not sacrificing grade, the internal launder system, and the unique feed/tailings sump that evens out flow to the flotation column preventing upset conditions. Results from various test programs and installations will be presented.

Jan 1, 2001

By J. Douglas Causey

A U.S. Bureau of Mines study indicates over 200 million yd3 (153 million m3) of cinder resources occur in the Mount Washington Wilderness. No future demand for the deposits is anticipated. Based upon the geologic environment, the area is considered favorable for discovery of geothermal resources. INTRODUCTION The Mount Washington Wilderness, located about 32 mi (51 km) west of Bend, Oregon, contains 46,655 acres (18,881 ha) (fig. 1). A 6,300-acre (2,550-ha) addition on the northeast and east boundaries has been proposed by the Forest Service under RARE II. The U.S. Geological Survey made regional geological, geophysical, and geochemical surveys, and the U.S. Bureau of Mines examined, analyzed, and evaluated the economic potential of prospects and commercially important mineral resources.

Jan 1, 1982

By L. Obert, D. E. Stephenson

The objectives of this investigation were to develop a laboratory procedure in which core discing could be produced under known (and variable) stress conditions, and to study the discing characteristics of several fypes of rock. Discing of rock cores refers to the formation of discs or wafers of relatively uniform thickness which fracture or rupture on surfaces approximately *Fracture is a type of failure in which there is a complete loss of cohesion and fresh surfaces are created. Rupture is a type of failure in which there Is only a partial loss of cohesion. normal to the axis to the core (see Fig. 1). Usually the surfaces of the discs are concave-convex with the concave side toward the collar of the hole. The surface of the fractured discs are like those created by a tension failure (or possibly a shear failure with virtually no normal compressive stress). This phenomenon has been observed by a number of investigators1-5 in the course of diamond drilling in underground mines, especially in areas suspected of being under high stress. The state of stress in the core required to produce discing is not exactly known. Tranter and craggs6 theoretically investigated the stress distribution in an infinite cylinder, subjected to hydrostatic pressure, minus p, from z = 0 to z = 8 and unloaded from z = 0 to z = 8, Fig. 2. The exact solution to this problem shows that a tensile stress develops in the loaded region near z = 0 with the greatest tensile stress on the axis of the cylinder. A tensile stress also developed on the surface of the cylinder at a point just outside of the loaded zone. Jaeger and Cook3 experimentally investigated the discing mechanism by biaxially loading cores in a pressure jacket sealed at the ends by O-rings. According to the Tranter and Craggs theory it would be expected that failure should occur at the pressure discontinuity at the O-rings. The experimental results showed that if the specimen was unjacketed it broke at random points within the pressurized zone and at a pressure somewhat greater than the tensile strength of the specimen, presumably due to the development of a

Jan 1, 1965

By Valois R. Shea-Albin

Ground control problems are an important factor affecting safety, production, and efficiency in underground coal mines. A major portion of ground control problems encountered in underground coal mines can be attributed to geologic features in the strata surrounding the extracted coal seam. The U.S. Bureau of Mines has compiled information from numerous sources on the geological features that contribute to ground control problems in underground coal mines. The compilation includes (1) sedimentary features such as paleochannels, crevasse splays, clastic dikes, mold-and-cast structures, concretions, and lithologic factors, and (2) structural features such as folds, fractures, joints, cleat, and faults. The compiled information will aid in identifying the features, predicting their occurrence in advance of mining, and controlling or minimizing roof failure when these features are encountered in an underground coal mine.

Jan 1, 1993

By W. P. Diamond

The explosion hazard of methane-air mixtures has become an increasingly serious mine planning problem, and an advance assessment of methane gas potential can therefore be essential for a safe and economic mine development program. As part of its coal mine health and safety program, the Bureau of Mines has developed a simple, inexpensive test to measure the methane content of coal samples obtained from exploration cores. The gas content of coal per unit weight as determined by the direct method test can be used as a basis for a preliminary estimate of mine ventilation requirements, and to determine if degasification of the coalbed in advance of mining should be considered. Since the Bureau began measuring the gas content of coal samples in 1972, experience has led to equipment and procedural changes, the most significant of which has been the development of a ball mill for crushing the coal sample to release the residual gas at the end of the desorption test period. This revised procedure replaces the crushing box and graphical methods described in earlier Bureau publications. The results of 583 direct method tests are summarized in tabular form. These results include data on the gas content of 125 coalbeds in 15 States.

Jan 1, 1980

By Ming-Feng Ye, Guang-liang Wu

The investigations on chemical composition, mineral composition, embedded figures, texture and microstructure of chrome ores were conducted systematically byvariousanalysismethodssuch aschemical analysis, XRF, SEM, and MLA 650 system. The results showed that there are 92.66% chromite and a small amount of chlorite and forsterite as the main mineral compositions, the content of quartz is very low. Elements as Cr and Fe are almost all present in chromite. The content of Cr O is 41.84% and Cr O /FeO is 2.1. The main ele- 2 3 2 3 ments in the chromite are Cr, Fe, Mg, Al, O; the main elements in the chlorite are Mg,Al,Si,OandasmallamountofFe;themainelementsintheforsteriteareMg, Si and O. On the basis of clarifying the mineralogical characteristics, to produce high-grade alloy, this ore should not be separately put into the submerged arc furnace without pretreating. However, it also seems to be difficult to separate the gangue compositions by the conventional physical upgrading methods, such as magneticseparationandgravityseparation.So,chemicalmineralprocessingshould be taken into account. (cid:1) (cid:1) (cid:1)

Mar 1, 2018

By Kent von Maubeuge, Charles R. Landis

The global bentonite industry is a dynamic market balancing a range of end uses with an ever growing number of bentonite producers. In addition, markets in developed countries are elevating the level of detail and transparency for materials reporting in programs, such as the Registration, Evaluation, Authorization and restrictions of Chemicals (REACH) program in the European Union. Bentonite is impacted by programs of this nature. The majority of the bentonite products sold around the world are sodium bentonites. These sodium bentonites consist either of natural sodium bentonites, or naturally occurring bentonite dominated by divalent interlayer cations (Ca+2 andMg+2) subsequently exchanged with sodium cation. The latter variety is often called “sodium-activated“, or “soda-ash treated” bentonite. Once exchanged with sodium, these bentonites are often difficult to distinguish from natural sodium bentonites using common commercial testing protocols. Due to their similar colloidal and bulk chemical properties; the lack of test procedures designed specifically to identify this product feature; and the failure to completely or effectively explain their differences, sodium-activated bentonite is often considered to be identical to natural sodium bentonite in the industry. This article defines both general types of sodium bentonite and presents a technique that could serve the industry as a tool to confirm the variety of sodium bentonite in question. Specifically, geochemical properties such as carbon (C13/C12) and oxygen (O18/O16) isotopic ratios can distinguish activated, even slightly activated bentonites, from bentonites not introduced to additional sodium during manufacture.

Jan 1, 2004

By R. E. Siemens

The Bureau of Mines sought to correlate the variation of structure-sensitive superconducting properties with microstructure in selected Cb-Hf alloys and to compare the experimental results with those predicted by the GLAG theory. Alloys in wire and rod form were evaluated by critical temperature, critical current, magnetization, resistivity measurements, and optical and electron microscopy. In the absence of an external magnetic field, the current carrying capacity of columbium was greatly reduced with addition of up to 85 wt pct Hf, but a large increase in Ic occurred for Cb-90 wt pct Hf. Favorable Ic-H behavior was observed in cold-drawn alloys containing 25 and 57 wt pct Hf. Correspondingly, a maximum in Tc occurred at 10-25 and 90 wt pct Hf. Four- or five-hour heat treatment at 600° C resulted in maximum Ic values and maximum hysteresis in magnetization. Dislocation pileup, polygonization, and fine precipitates, responsible for flux pinning, are listed in order of their effectiveness as pinning sites. Sites having an average separation of 1,500 to 3,000 A and a diameter of 1,000 A or less were most effective in influencing Ic-H and M-H behavior. The resistive critical fields increased smoothly to a maximum of 80 k0e between 60 and 65 wt pct Hf. Highfield, mixed state, reversible paramagnetism was observed in some alloys; however, the GLAG theory was in good agreement with experimental results for the majority of the composition range studied.

Jan 1, 1969

By Richards J. W.

J.W. RICHARDS, South Bethlehem, Pa. (communication to the Secretary?).-Mr. Howland's paper, data and conclusions have interested me intensely, and have led me to study carefully the record-of his 26 furnaces therein given. Mr. Howland is undoubtedly right in his conclusion that when expressing the amount of carbon burned at the tuyères in percentage of the total

Jan 1, 1917

By Raymond Derzay

This publication is intended to be of value to the mineral industry in establishing and maintaining effective programs for preventing noise-induced hearing loss. Factors involved in this loss and the need for and the requirements of an effective hearing conservation program are discussed. The legal and legislative history of compensation for hearing loss is briefly reviewed. A review of statutes is not attempted since several States have recently modified) or are in the process of modifying their laws regarding permissible noise exposures) required hearing protection) and/or compensation for hearing loss. A review of other aspects of the problem of industrial noise in terms of medical, physiological) and psychological frames of reference is included. A hearing conservation program is described in detail. Appendixes detailing the names and addresses of a few equipment suppliers are included. References are provided for those who may wish to delve more deeply into the medical, technical, and scientific considerations of noise and its effect on man.

Jan 1, 1972