Search Documents

By L. W. Blau

RESEARCH work in exploration and production was further reduced during 1943 owing, partly, to difficulties in the acquisition of apparatus and, principally, to the exodus of research men to governmental agencies conducting research and to the armed forces.

Jan 1, 1944

By D. R. de Fontaine

By computing the values of the resolved shear stress for a great many orientations of the tensile axis on all 12 (111) <110> slip systems, Taylor and Elam&apos; were able to map out a stereogram of slip systems, given here, Fig. 1, in Diehl&apos;s notation (see, for example Hauser and Jackson&apos;). The purpose of the present note is to derive such a stereogram by mathematical reasoning and to give a simple method of defining the system with highest resolved shear stress for any direction of the tensile axis, thereby eliminating tedious computation of the Schmid factor. Let the tensile axis, of direction cosines [xyz], make the angles 0 and relative to the slip plane normal [HKL] and the slip direction [hkl] respectively. Fig. 2 shows a simple cubic cell whose edges define a Cartesian coordinate system. Let A be a unit vector of origin 0 supported by the tensile axis. Its end point [xyz] then lies on a sphere of unit radius, on the positive hemisphere of which the planes z = 0, x = y, y = z limit the so called primitive triangle of a standard [loo] stereographic projection. For any point of this triangle, the following hold: 0«2 «y *sx « 1 [l] Now, for given [xpz], the most highly stressed system will be the one for which the following expression of the Schmid factor has the largest possible value: (HKL) belonging to the form (111) and [hkl] to the form <110>, the denominator on the right hand side of Eq. [2] is equal to 1.fi.a. The unknowns H, ... h, . . . can now be determined by correctly distributing +1 and -1 to H, K, L, and +1, -1,O to h,k, 1 giving the numerator of Eq. [2] its greatest positive value (the angles 0 and cpare chosen acute) subject to the condition: Hh+Kk+Ll = 0 [3] since the slip direction must lie in the slip plane. Condition [3] can be satisfied only by having one of its terms vanish and the other two equal to +1 and -1. Taking the case of the tensile axis lying in the primitive triangle, x2y, z and therefore Hh will be chosen equal to +1 with H = h = +1 in order to retain a maximum of + signs. There remain two alternatives: either 1 = 0 or k = 0. 1) take 2 = 0 Then Kk = -1 and the numerator of [2] becomes: Retaining a maximum of + signs gives L = k = +1 and becomes: 2) take k = 0 Then L1 = -1and, likewise, the numerator of [2] becomes: xz - z2 + xy + yz [5] But the difference [5] - [4] can be written: (y - z)(x+y +z) [6] positive or zero by virtue of [I]. If [6] is positive (y > z), then the largest possible value for the numerator of [2] for any xyz inside the primitive triangle is given by [5], i.e., for: That is to say, the active slip system corresponding to an orientat:~on of the tensile axis inside the primitive triangle is:

Jan 1, 1962

By W. M. McKewan

Magnetite pellets were reduced in flowing hydrogen at pressures up to 40 atm over a temperature range of 350° to 500°C. The rate of weight loss of oxygen per unit area of the reaction surface was found to be constant with time at each temperature and pressure. The reaction rate was found to be directly proportional to hydrogen pressure up to 1 atm and to approach a maximum rate at high pressures. The results can be explained by considering the reaction surface to be sparsely occupied by adsorbed hydrogen at low pressures and saturated at high pressures. PREVIOUS investigation1,2 have shown that the reduction of iron oxides in hydrogen is controlled at the reaction interface. Under fixed conditions of temperature, hydrogen pressure, and gas composition, the reduction rate is constant with time, per unit surface area of residual oxide, and is directly proportional to the hydrogen pressure up to one atmosphere. The reduction rate of a sphere of iron oxide can be described3 by the following equation which takes into account the changing reaction surface area: where ro and do are the initial radius and density of the sphere; t is time; R is the fractional reduction; and R, is the reduction rate constant with units mass per area per time. The quantityis actually the fractional thickness of the reduced layer in terms of fractional reduction R. It was found in a previous investigation2 of the reduction of magnetite pellets in H2-H,O-N, mixtures, that the reaction rate was directly proportional to the hydrogen partial pressure up to 1 atm at a constant ratio of water vapor to hydrogen. Water vapor poisoned the oxide surface by an oxidizing reaction and markedly slowed the reduction. The enthalpy of activation was found to be + 13,600 cal per mole. It was also found that the magnetite reduced to meta-stable wüstite before proceeding to iron metal. The following equation was derived from absolute reaction-rate theory4,8 to expfain the experimental data: where Ro is the reduction rate in mg cm-2 min-&apos;; KO contains the conversion units; Ph2 and PH2O are the hydrogen and water vapor partial pressures in atmospheres; Ke is the equilibrium constant for the Fe,O,/FeO equilibrium; Kp is the equilibrium constant for the poisoning reaction of water vapor; L is the total number of active sites; k and h are Boltzmann&apos;s and Planck&apos;s constants; and AF is the free energy of activation. Tenenbaum zind Joseph5 studied the reduction of iron ore by hydrogen at pressures over 1 atm. They showed that increasing the hydrogen pressure materially increased the rate of reduction. This is in accordance with the work of Diepschlag,6 who found that the rate of reduction of iron ores by either carbon monoxide or hydrogen was much greater at higher pressures. He used pressures as high as 7 atm. In order to further understand the mechanism of the reduction of iron oxide by hydrogen it was decided to study the effect of increasing the hydrogen pressure on rebduction rates of magnetite pellets. EXPERIMENTAL PROCEDURE The dense magnetite pellets used in these experiments were made in the following manner. Reagent-grade ferric oxide was moistened with water and hand-rolled into spherical pellets. The pellets were heated slowly to 550°C in an atmosphere of 10 pct H2-90 pct CO, and held for 1 hr. They were then heated slowly to 1370°C in an atmosphere of 2 pct H2-98 pct CO, then cooled slowly in the same atmosphere. The sintered pellets were crystalline magnetite with an apparent density of about 4.9 gm per cm3. They were about 0.9 cm in diam. The porosity of the pellets, which was discontinuous in nature, was akrout 6 pct. The pellets were suspended from a quartz spring balance in a vertical tube furnace. The equipment is shown in Fig. 1. Essentially the furnace consists of a 12-in. OD stainless steel outer shell and a 3-in. ID inconel inner shell. The kanthal wound 22 in. long, 1 1/2, in. ID alumina reaction tube is inside the inconel inner shell. Prepurified hydrogen sweeps the reaction tube to remove the water vapor formed during the reaction. The hydrogen is static in the rest of the furnace. The sample is placed at the bottom of the furnace in a nickel wire mesh basket suspended by nickel wire from the quartz spring. The furnace is then sealed, evacuated, and refilled with argon several times to remove all traces of oxygen. It is then evacuated, filled with

Jan 1, 1962

By C. N. Garman

Homestake-New Mexico Partners operate a 750-tpd carbonate leach uranium concentrate mill near Grants, N.M. The highly mineralized water available as process water leaves much to be desired. The 628 ppm as CaCO 3 makes the use of raw water very troublesome in pipes and on filter cloths. However, the residual sodium carbonate in the final filter cake going to tails makes an ideal softening agent. To take advantage of this fact, all makeup water used in the mill is first used as tailing slurry dilution water and comes to the mill from the tailings pond. The 5-acre tailings pond serves as a thickener and 100 to 150 gpm of nearly clear solution is decanted to a pump to be returned to the mill. Since this tailings water has small quantities of uranium in the solution an ion exchange scavenger unit was installed to remove as much uranium as possible. The ion exchange raffinate is then used as final filter wash ahead of the tailings slurrying step. In spite of the large settling area this return water is not clean enough for ion exchange feed. The solids present are very fine and composed of approximately 15 pct (by weight) burnable carbonaceous material common to the sandstone uranium ores in the area, 40 pct SiOz plus 45 pct CaC03. Laboratory work showed that this material responds very well to flotation. Before deciding to use flotation, various clarifying systems such as pressure leaf filters, sand filters, and continuous vacuum pre-coat filters, were considered. Each of these could have solved the problem but with much more operating labor, more reagents and greater installation costs than the flotation step. About 100 to 150 gpm of fouled water is fed to two 66-in. Fagergren cells, in series. Reagents used at the beginning were Arquad 2HT75 and Arquad C50, at the rate of about 1% lb per 8-hr shift, or about 0.0053 lb each per ton of ore. This did not completely remove the solids but does an acceptable job. Approximately 75 pct of the slimes are a size that can be caught on a 41-Whatman Paper are removed. Removal of these slimes also allows much better settling of the coarse nonfloatable material. Advantage is also taken of this fact in a small settling tank ahead of precipitation. Removal of this amount of the slimes makes the ion t:xchange feasible. PREGNANT SOLUTION CIRCUIT The carbonate? leach-caustic precipitation method of uranium concertration does not provide for any process purification step ahead of precipitation. Therefore, any fine solids getting into the pregnant solution through the filter cloth show up in the final concentrate. This, of course, lowers the grade, and, at times, the slimy nature of these very fine solids rendered final filtration of the concentrate difficult if not impossible At Homestake-New Mexico Partners a 75-ft thickener was available for gravity clarification of 100 to 120 gpm of this pregnant solution. However this did not sufficiently remove the slimes. Laboratory investigation of the whole range of flocculants that were suggested by literature, salesmen, and friends failed to turn up anything of consequence. A continuous vacuum pre-coat filter would do the job and was investigated. The capital cost and the operating labor and materials made this a last chance choice. Following work done in the metallurgical laboratory on the tailings return water, it was found that some changes in the reagent strengths and combinations made a very definite decrease in the solids in the pregnant solution. Concentrate grade improved about 5 pct anti the final product after drying had an appreciably greater bulk density. Compared to a cost of about 2.2e per ton for pre-coat filter opelation for cleaning just one circuit, flotation costs less than 1.0 per ton of ore for cleaning two circuits. While a pre-coat filter would do a more thorough job, the flotation does all that is required for either circuit. Gravity causes the froth produced to run back into the leach circuit. This does not appear to result in a build-up of objectionable slime. No extra manpower is required; the operators in the separate areas can observe the operation of the cells and mix the small quantities of reagents as needed. Normally the 66-in. Fagergren cell requires 15 hp per cell, but this very dilute slurry needs only 10 hp for both cells. Originally, a combination of the two Arquads mentioned previously served as frothers and promoters. As further testing

Jan 1, 1962

By A. L. Engel

IN the treatment of complex ores by flotation, one of the most important steps is conditioning the feed. Conditioning primarily consists of the addition, in the grinding circuit, of an alkaline reagent, for example sodium carbonate, which neutralizes any acidity of ore and mill water, counteracts the effect of &apos;harmful soluble salts, disperses colloids, and provides the necessary alkalinity for the best metallurgical results. The several minerals of the ore should be put in such condition that they may be floated or rejected as desired, through the action of further reagents thereafter used.

Jan 1, 1932

Jan 1, 1925

Jan 1, 1918

Jan 1, 1909

By T. F. Witherbee

The following calculation of heat requirement covers the working of the furnace from January 25th to February 14th, inclusive. A short time previous to the first date the furnace had been working rather badly, so that 300 lbs. of ore and 500 lbs. of limestone were taken off. Within the time mentioned the quality of the iron passed

By Felix A. Vogel

Flue-dust, to most blast-furnace operators, means a troublesome by-product, the formation of which should be curtailed, if not prevented entirely. However, with the increasing use of fine ores, larger furnaces, and high-pressure blast, the production of flue-dust is constantly increasing, and amounts annually in the United States to from 3,000,000 to 3,500,000 tons, an exceedingly high tonnage, of which a large part has been discarded as valueless.

Jan 1, 1913

By T. L. Joseph

THE committee appointed to investigate the application of oxygenated air to the blast&apos; furnace believes, after a careful study of the problem, that this enriched air will increase hearth temperature, tonnage, flexibility of operation, and quality of pig iron made, and that fuel consumption will be decreased. These improvements are supported by theoretical evidence; but a practical trial of the process is necessary to establish more definitely the magnitude of benefits realized. The commercial application, however, may profitably be preceded by a test on a smaller scale. A small furnace will, in general, respond to the enriched air in the same way as a commercial furnace and the magnitude of the benefits to be gained from varying additions of oxygen can be fairly well established at relatively little expense. A new experimental furnace, being built jointly by the Bureau of Mines and the University of Minnesota, at Minneapolis, will have a capacity of about 6 tons and will riot require more than 700 cu. ft. of natural air per minute. Its hearth is 36 in. in diameter and its height about 32 ft. Enough oxygen to enrich the blast to the extent recommended by the committee can be obtained from a small oxygen unit. It might even be cheaper to perform preliminary experiments with tanks of oxygen obtained from regular, dealers. A procedure in making the test that suggests itself is to start with operation on normal air; then to use blast, enriched in several steps. Systematic temperature measurements of the tuyeres, slag, and metal would reveal any changes in hearth temperature. When these changes become large enough, the burden may be gradually increased to just within the breaking point and the furnace brought back to normal, if possible, by the addition of oxygen. Such a test would show what might be expected in the way of a decrease in fuel consumption and the time taken to "straighten up" the furnace by means of oxygen. The new furnace at Minneapolis is so equipped that the furnace process can be observed from the stock line to the iron notch. We have been taking gas samples at various elevations in the furnace to study combustibility of the fuel and the reducing power of the gas. If either of these is affected by removing inert nitrogen, the change can easily be measured.

Jan 11, 1924

By M. Albertson

AT Cobalt, Ontario, Canada, a lake was drained to facilitate mining, by the Mining Corpn. of Canada, during the spring and early summer of 1915. Previous to pumping out the water, great quantities of sands and slimes from concentrating plants had been discharged into the lake and during and after the lake&apos;s drainage, its basin&apos; Was a receptacle for tailing products. As the writer was at work along the shore line as the lake was being drained, he had a good opportunity to observe the changes that took place as the water was withdrawn. Some adjustments between the incoming sands and the mud in the lake had taken place before pumping was commenced. One of the most interesting results was the appearance of a small dome in a path the writer traversed twice a day for several months; he remembers distinctly the difficulty of crossing this. Cobalt Lake owed its existence to the gouging out of a rock basin by glaciation. The long axis of the basin closely follows the strike of a thrust fault of about 500 ft. (160 in.) vertical displacement. The lake was originally shaped somewhat as shown. The length was about 3000 ft. (914.4 in.), the width at the lower lobe was about. 1000 ft., and the, width at the narrows probably. 400 to 500 ft. The original depth of water varied from 20, to 30 ft. (6.1 to 9.1 m.), near where the island later was formed, to 60 to 70 ft. (23.6 to 27.6 m.) in the widest part of the lower lobe. At the narrows, the depth was 30 to 40 ft.. Above the bed rock was sand, with boulders near the bottom, and mud. During the building of the railroad in 1903, considerable filling was done along the right of way. With the commencement of mining operations, about 1905, waste rock and mill tailings were dumped into the lake. One of the mining companies operated a hydraulic giant to remove the glacial debris from several hundred acres of rock surface; much of the sand and clay from this operation was deposited in the. lake. About

Jan 2, 1921

By Walter Miller

Any review of the engineering progress made in 1932 in the petroleum refining industry must necessarily be broad and general, improvements having been made in practically all major branches of this activity. Several factors contributed to an advancement on a wide front, much of it coming from those active in refining, considerable from those not, immediately in it but engaged in designing and installing equipment and maintaining large and capable staffs of experts in both engineering and development work. Another factor has been the ability of the refiner, because of less than capacity operation, to carry on experimental and development work in regular plant equipment. The movement to higher antiknock value gasoline has continued through 1932, and the average improvement of the more widely sold branded gasolines is from 3 to 4 points higher in the octane scale. A very great improvement was brought about during the year in the method of determining the octane number of gasoline. While the procedure and equipment for determining this value as developed by the Cooperative Fuel &search Steering Committee prior to 1932 had received fairly general acceptance, evidence that it did not always evaluate in a measure consistent with road performance quickly accumulated, and led to further effort to synchronize laboratory results with actual use. As the result of some really brilliant work on the part of the C.F.R. Committee and a large number of collaborators, it was found that a comparatively minor modification of the previously developed equipment and method gave surprisingly concordant results between laboratory tests and trial per-formance on the road. This method has been officially accepted by the Society of Automotive Engineers and the American Petroleum Institute, and will according to present plans go into general use on April 1, 1933. The American Society for Testing Materials has studied the method but at the time of writing this had not reached a final decision regarding it. Improved Volatility of Gasoline The most notable trend during the year, in addition to a very considerable increase in antiknock value referred to above, has been in the

Jan 1, 1933

By F. J. Tuck

THE Hayden mill of the Ray Mines Division, Kennecott Copper Corporation, is now equipped with two 9 by 12-ft. rod mills having a daily capacity of 6000 tons of coarse-crushing plant product from the mine. These two mills crush a ¾ -in. product to approximately 19 per cent on 14 mesh, with only one pass through the mills. Each rod mill has taken the place of four sets of 42-in. Garfield rolls with their attendant screens, and is making a product for the fine-grinding department comparable to that formerly made by rolls in closed circuit with screens. The rod mills are lined with wave-type liners of white iron, varying in thickness from 2 to 3 in. The shell and end liners last approximately 600 to 700 days. Manganese-steel lifter bars, 3 5/8 in. thick, are used, spaced about 11 in. apart, and they give a life of 350 to 450 days. Fig. 1 shows the general design and thickness of the wave-type liners and lifter bars; 1 ½ -in. liner bolts are used to fasten the lifter bars to the shell. The shell liners are held in place by the tapered lifter bars. A 3/4-in. wood backing is used between the shell and the liners. The rod-mill scoop has removable manganese-steel lips, which last 250 to 300 days. The scoop proper has shown some wear in spots, and these spots have been protected by rubber bolted over them. Water and milk of lime are added to the elevator feeding the mill, but not enough water to cause a pounding of the rods against the shell. Roughly, the water added amounts to 25 to 33 per cent of the ore. Additional water is added to the mill discharge to facilitate distribution to the classifier bowls in the fine-grinding department. Rods are charged to the mill once every four days, the mill being down about 20 min. for this purpose. Other delays are negligible, and usually are due to a loose liner bolt or possibly power trouble. However, these occasions are extremely rare. In charging the mill, a crane is used

Jan 1, 1938

By Charles M. Ryder

In presenting this paper to the Institute I beg to mention, first, the results which I have obtained and the apparatus which I have employed, and to follow this with a brief description of the steps by which I hare perfected this process. My present mode of testing is as follows: I obtain, either from the furnace or from the finished product in any stage in which it may chance to be, a small test-piece, usually about 3/4 of an inch square by 3 1/2 inches in length. I place this test-piece upon the poles of an ordinary electro-magnet, for about one minute, and thus magnetize it to its extreme limit. I then place it upon an indicator (which I will shortly describe), on which indicator there is already placed a piece of steel of similar form which has been magnetized in the same manner, the percentage of carbon of this second piece being definitely known. I then, by means of a scale, which forms part of the indicator, marked in degrees of carbonization, read the exact percentage of carbon contained in the piece under examination. My apparatus consists of an ordinary electro-magnet, connected with a suitable battery of moderate power, by which I magnetize the pieces as before described, and of an indicator which consists of a magnetic needle suitably mounted or suspended, so that it is free to deviate a few degrees only from the zero point, and having a rest, which is used to check the vibrations when in use, and to support its weight when not in use. At a right angle to the natural position of the needle I have a scale about 3 feet long, the zero point of which coincides with the natural position of the needle. This scale is marked in each direction from the zero point in degrees of carbonization. The marking of the scale is in accordance with the following rule: Taking the carbonization of the steel as a basis, I maintain the same proportion between the squares of the distances on the scale as exists between the percentages of carbon in the steel, for instance, if .08 of

By Ben-Zion Weiss, Melvin R. Meyerson

FATIGUE crack propagation in some aspects can be viewed as being a result of localized plastic deformation concentrated near the tip of the crack.&apos; Deformation is influenced by microstructure which in turn can affect the fatigue crack growth significantly. To study the effect of localized microstructural changes on fatigue crack propagation, cantilever-type notched specimens were subjected to cyclic bending at constant load amplitude. The extent of fatigue crack propagation was obtained by measuring the length of the crack by periodic observation with a microscope on the polished side of the sample,2"4 and these data were used in preparing the curves in the figures which follow. Figs. 1 (solid lines) and 2 show experimental results obtained in austenitic type 302 stainless steel containing higher than standard carbon (0.24 pct C) and 310 stainless steel. Both steels were homogenized for 8 hr at 1120°C and then water-quenched in order to prevent the precipitation of carbides. Fig. 3 shows experimental results obtained on 9440 low alloy steel in the normalized condition and in the quenched and tempered (580°C) condition. Indications of microstructural influence can be seen in scattering of the experimental data. The degree of scattering depends on both the microstructure and the amount of cyclic stress applied to the sample. For microstructures which are more easily deformed plastically, e.g., normalized or annealed as compared with hardened and tempered structures, the scattering is greater. Similarly, higher stresses produce greater scattering in the results, regardless of whether the cause of the stress increase is due to initial loading conditions or the growth in crack length. Scattering is believed to be a result of partial redistribution in the stress field around the tip caused by plastic deformation. This opinion is borne out by much smaller scattering of experimental results in the austenitic 302 high-carbon (0.24 pct C) steel. In this steel, plastic deformation in the neighborhood of the crack causes partial mar-tensitic transformation of metastable austenite,5 which in turn restrains further plastic deformation. As a result, the stress redistribution around The tip is reduced. Partial martensitic transformation was confirmed

Jan 1, 1969

By Charles M. Ryder

IN presenting this paper to the Institute I beg to mention, first, the results which I have obtained and the apparatus which I have employed, and to follow this with a brief description of the steps by which I have perfected this process. My present mode of testing is as follows : I obtain, either from the furnace or from the finished product in any stage in which it may chance to be, a small test-piece, usually about 4 of an inch square by 3 1/2 inches in length. I place this test-piece upon the poles of an ordinary electro-magnet, for about one minute, and thus magnetize it to its extreme limit. I then place it upon an indicator (which I will shortly describe), on which indicator there is already placed a piece of steel of similar form which has been magnetized in the same manner, the percentage of carbon of this second piece being definitely known. I then, by means of a scale, which forms part of the indicator, marked in degrees of carbonization, read the exact percentage of carbon contained in the piece under examination. My apparatus consists of an ordinary electro-magnet, connected with a suitable battery of moderate power, by which I magnetize the pieces as before described, and of an indicator which consists of a magnetic needle suitably mounted or suspended, so that it is free to deviate a few degrees only from the zero point, and having a rest, which is used to check the vibrations when in use, and to support its weight when not in use. At a right angle to the natural position of the needle I have a scale about 3 feet long, the zero point of which coincides with the natural position of the needle. This scale is marked in each direction from the zero point in degrees of carbonization. The marking of the scale is in accordance with the following rule: Taking the carbonization of the steel as a basis, I maintain the same proportion between the squares of the distances on the scale as exists between the percentages of carbon in the steel, for instance, if .08 of

Jan 1, 1877

J. M. HARTMAN, Philadelphia, Pa.: Mr. Fackenthal can remember some queer things that occurred at Durham, Pa., Aug. 3, 1876, while he was superintendent. The furnace was working stiff, i.e., blast-pressure 10 to 11 pounds, which was high pressure for those days. With this pressure there was some circulation through the stock. At 9 p.m., flushed cinder. After flushing, air was thrown off&apos; for a moment to " bot up "; the keeper turned the lever and threw on air just as the scaffold dropped, which eased up the pressure to 4¼ pounds. The air-receiver is twice as large at Durham as at other places. The air from this receiver, added to the two seven-foot blowers, gave an extra large volume, which, rushing into the furnace, fired the finely-divided carbon, causing an explosion that threw part of the stock in the furnace out into the open air, threw up the bell-and-hopper with the tunnel-head plates, and gave off&apos; a large volume of carbondust. The bell-and-hopper going up first, the stock followed, and, striking the bell-and-hopper, was deflected in a shower over the cast-house roof, breaking the slates. Sitting at the corner of the engine-house at the time, the stock pelted me, when I ran around the corner to get rid of it. Remembering there were two men at the furnace-top, I shut down the engines, and, running to the top, found them sitting in the hoist-house enjoying the fire-works. The explanation of this explosion is simple. There is in the blast-furnace a bed of fuel extending up, say, 16 to 18 feet above the tuyeres; in this bed of fuel some stray pieces of limestone are found, and a few pieces of unreduced ore; but, generally speaking, it is all fuel. On this bed of fuel is the zone of fusion. In this zone the descending stock is liquefied, except the fuel; the iron, melting, drops out of the ore, and the gangue unites with lime, forming cinder. The iron falls in the form of shot, and, with the cinder, trickles

Jan 1, 1899

By O. B. Hopkins

There was no noteworthy development in the oil industry in Peru during 1933 and all activities were restricted to the producing fields. The output of the country increased above that of previous years but there still remained a substantial shut-in production at the close of the year. The total production during 1933 is estimated at 13,259,891 bbl., of which the International Petroleum Co., Ltd. contributed 11,205,-362 bbl. A relatively small amount of new drilling was undertaken during the year. The International completed only one new well although a number of the old producers were reworked and deepened. Comments on Tables There are four oil districts in Peru, as shown in Table 1, although only three of these are now being operated. The exhausted Pirin field was abandoned eight years ago. La Brea-Parinus.—The La Brett-Parinas fields are on the property of the International Petruleum Co., Ltd. in the westernmost part of Peru. These fields include a number of producing districts that are defined by complex fault blocks associated with anticlinal folds. Data covering all the items listed in the table are not available on these fields but can perhaps be supplied in part in the future. Lobitos and Restin.—These two fields belong to the Lobitos Oilfields Limited and are near the coast, 10 to 20 miles north of the La Brea-Parinas fields. According to the Department of Mines and Petroleum of Peru, 311 wells at Lobitos and 197 at Restin had been drilled to the end of 1927. Since that date there has been enough drilling to increase moderately these figures. The depth of wells is not available but it is believed that their average depth is slightly greater than in the La Brea-Parinas area. The productive horizons are of Eocene age. zorritos.—The Zorritos field is the northernmost in Peru and is operated by the Establecimiento Industrial de Petroleo de Zorritos. The field is on the coast about 70 miles north of Lobitos. The number of wells drilled in this field to the end of 1927 was 343, according to the Department of Mines and Petroleum of Peru. The depths of these wells are reported to range from 300 to 700 ft. The largest wells do not produce

Jan 1, 1934

Discussion of the paper of PHILIP W. HENRY, presented at the New York meeting, February, 1915, and printed in Bulletin No. 97, January, 1915, pp. 23 to 30. C. ,E. GRUNSKY, JR., San Francisco, Cal. (communication to the Secret ary*).-The difference of opinion of engineers on the subject of depreciation is justified, to some, extent, by the many viewpoints from which such a subject can be considered when applied to properties of widely differing physical characteristics. Mr. Henry takes up the subject of depreciation as applied alone to oil properties, and in doing so makes a clear distinction between amortization and the repair or renewal requirement. After carefully reading the paper the purpose of its author in suggesting a "depreciation" reserve or fund to keep the property at a constant value does not seem clear. As shown by Mr. Henry, the depreciation element as compared with the operating expense per gallon of oil is very large because of the comparatively short life of the oil properties, and it is also evident that such a "depreciation" fund would in a short time contain a very large amount of money. It seems desirable and permissible in income-tax matters to take into account the depreciation of property and to separate from the income such money as is necessary to amortize the invested capital to an extent warranted by the depreciation. However, it does not seem either necessary or desirable to create a large fund which will in time approximate the entire invested capital and which may he invested by the directors, as Mr. Henry suggests, "in the property itself or in outside securities." This method seems cumberome and liable to offer in the reinvestment of such a fund temptations to a directorate that might show more devotion to its own interests than that of the stockholders. A reserve fund is very frequently desirable in mining and oil operations, but to keep up a fund of this magnitude or to reinvest it in outside securities does not seem desirable from a stockholders&apos; standpoint. The. money withdrawn from the receipts to be placed in the depreciation fund (not including replacements and the drilling of new wells necessary to keep up the productiveness) should he returned to the stockholders of the company, not as dividends, but as an amortization of the invested capital.

Jan 5, 1915