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By Jack D. Webber

The successful use of oil well packers requires, in part: an understanding of the pressures which exist at the packer in various applications and an understanding of the characteristics of the various types of packers. It is with these pressures, the resultant forces, and the characteristics of packers. that this paper is primarily concerned. An oil well packer may be defined as a mechanical device for blocking the passage of fluids in an annular space. In the more usual case, the annular space is that between the tubing or drill pipe in a well and the casing, and packers which block such an annular space are broadly referred to as casing packers. In the other case. the annular space is that between the tubing or drill pipe and the walls of an open hole, and packers for blocking this space are generally called formation packers. While the hydraulics involved are essentially the same for casing and formation packers. a greater variety of conditions are encountered in the use of casing packers and only casing packers will be discussed. After a packer has been set and a pressure seal effected between tubing and casing, the packer is comparable to a piston in a cylinder. Pressures acting upon a piston result in forces which will move the piston unless some means is provided to prevent such movement. In the same manner, pressures acting upon a packer will move the packer unless there is present a sufficiently great restraining force. PACKER CLASSIFICATIONS Packers may be classified according to the pressure conditions under which they are capable of blocking the annular space between tubing and casing. Fig. 1 shows schematically two types of packers in common use. These packers are capable of blocking the annular space against the passage of fluids under a differential pressure of significant magnitude only when the pressure in the annular space above the packing element is greater than the pressure below. It may be seen that in Fig. l-a. slips with teeth which bite into the casing and prevent downward movement are provided. In Fig. 1-h. an anchor prevents downward movement. In each case, there i-only the tubing to prevent upward movement when differential pressures act to move the packers upwardly. Packers which hold only a significant differential pressure acting downwardly have been in use since the early days of the oil industry and will hereafter be referred to as conventional type packers. In many packer applications operating conditions will 1.crult in differential pressures across the packer which will at times act to move the packer upwardly, and at other times, act to move the packer downwardly. For these applications, designs are available which will block the annular space and resist movement in either direction. Fig. 2-a shows schematically a packer of this type which is designed to be run into a well and set, and removed when desired by merely pulling the tubing. It will be noted that two sets of slips are provided-— one set above the packing element to prevent upward movement, and another set below the packing element to prevent downward movement. This packer is built around a mandrel which is essentially a part of the tubing. and which is free to move longitudinally within certain limits through the set packer. Fig. 2-b shows schematically a permanent type packer which is capable of holding pressures from either direction. Here again, two sets of slips are provided to prevenl movement of the packer. This packer is designed to become virtuallv a part of the casing when set and it is made of drillable material so that it may be drilled out when its removal is desired. The seal nipple shown effects a pressure seal between the tubing and the packer. This seal nipple is a part of the the tubing, and the nipple and tubing may be withdrawn from the well without disturbing the packer. It should be noted that these figures are not representative of all available packers which are designed to hold pressures from both above and below. Packers which resist movement in either direction will hereafter be referred to as universal type packers. There is a third type of packer in general use and this type is designed to block the passage of fluids when the pressure below the packing element ii greater than that above. This type is provided with slips which prevent upward movement of the packer and is somewhat similar to a conventional type packer run upside-down. Packers designed to hold pressure only from below are made in a variety of designs and are usually owned and operated by service companies.

Jan 1, 1949

By K. T. Aust

It is proposed that the intergranular corrosion of austenitic stainless steels is associated with the presence of continuous grain houndary paths of either second phase, or solute segregate resulting from solute-vacancy interactions. Experimental observations of structural changes and crrosion behavior of different types of austenitic stainless steel provide support for this poposal. On the basis of this model, it is shown that the intergranular -corrosion susceptibility of austenitic stainless steels in nitric-dic hromate solution may be substantially reduced either by suitable heat treatments or by impurity control. AUSTENITIC stainless steels, such as Type 304, generally have excellent corrosion resistant properties when properly solution heat-treated and used at temperatures where carbide precipitation is slow. However, several corrosion environments have been found which produce intergranular corrosion of solu-tion-treated stainless steels, that is, those steels with no detectable carbide precipitation.''2 Of the various corrosion environments, the most widely used test solution has been the boiling nitric-dichromate solution. In these acid solutions, stainless steels have been found to be susceptible to intergranular attack despite the addition of carbide-forming elements such as titanium or columbium, or despite lowering of the carbon content or use of high-temperature solution treatments. Studies of the electrochemical mechanism of corrosion attack have been made by several worke1s3'4 who found that oxidizing ions such as crt6 depolarize the cathodic reactions and consequently raise the open-circuit potential of stainless steel immersed in nitric acids. As a result of this, the anodic reaction is accelerated. The reason for the localization of anodic activity at the grain boundaries, and resulting intergranular corrosion, has not been conclusively determined. Several workers, e.g., Streicher,3 and Coriou et al.,4 have suggested that the strain energy associated with grain boundaries provides the driving force for the accelerated intergranular corrosion. This argument would predict that alloys of high purity would still be susceptible to intergranular attack. However, work by chaudron5 and by ArmijO,6 has shown that high-purity alloys are immune to attack, in disagreement with this argument. An alternative suggestion is that chemical concentration differences exist between grains and grain boundaries, that is, impurity segregation at boundaries, and that these chemical differences provide the driving force for localized attack. It is this impurity segregation which can lead to accelerated dissolution of grain boundaries when the alloy is exposed to a suitable corrodant. This mechanism would predict the immunity of high-purity alloys to inter-granular attack, which is in agreement with experi-mental observations. In the present paper, some recent studies on inter-granular corrosion of austenitic stainless steels which were conducted by coworkers and myself will be re-tibility A simple model will be described in which it is proposed that the intergranular corrosion of aus-tenitic stainless steel is associated with the presence of continuous grain boundary paths of either second phase or solute-segregated regions.* On the basis of this model, it is suggested that the intergranular corrosion rate can be markedly reduced by the formation of a discontinuous second phase at the grain boundaries if the discontinuous second phase incorporates the major part of the segregating solute, drained from the grain boundary region. Results are presented of corrosion tests and electron microscopic studies of different types of austenitic stainless steel after various heat treatments which provide experimental support for this model. Finally, a solute clustering mechanism, based on a solute-vacancy interaction, is shown to be consistent with the results obtained for inter-granular corrosion of solution-treated austenitic stainless steels. EXPERIMENTAL Corrosion tests using weight loss measurements were made on sheet specimens, which were lightly electropolished, washed, and immersed in boiling (115°C) 5 N HN03 containing 4 g crt+6 per liter added as potassium dichromate. Studies in which the inter-granular penetration depth was measured both by electrical resistance and metallographic methods have shown an empirical correlation between the rate of intergranular penetration and the weight loss per unit time for identically treated specimens of stainless steel." As a result, although all the corrosion data reported here are in terms of simple weight loss measurements, these data are considered to reflect primarily the rate of intergranular dissolution. Fig. 1 shows a typical result of intergranular attack of a solution-treated Type 304 stainless steel after 4 hr in a boiling nitric-dichromate solution. The wide grain boundary grooving at the surface, and the attack at incoherent twin boundaries, are evident; very little corrosion attack is seen at the coherent twin boundaries. INTERGRANULAR CORROSION MODEL

Jan 1, 1970

By F. M. Stewart

A paper by Hurst and van Ever-dingen in 1949 led to the practical solution of many nonsteady-state flow problems.' Subsequently, applications of this material have been discussed by several authors. The purpose of this note is to outline a simplified direct procedure for water-influx pressure predictions for pressures above the bubble point. The prcposed procedure is unique in that after the "time-conversion factor" and the "influx constant" are obtained, predictions are made without trial and error. The elimination of trial and error is made possible by expressing certain PVT characteristics as explicit functions of pressure. The procedure is applicable to fields producing at pressures above the bubble point and under radial water drive from an infinite aquifer. In the usual applications it is required to predict (1) withdrawals given future pressure history or (2) reservoir pressure, given future withdrawals or production. The theory, assumptions and conditions under which the nonsteady-state solutions hold are covered in the references and are not repeated. The simplified direct procedure outlined here has been developed from published solutions for the so-called "pressure case". A similar direct procedure for the same special conditions has been developed for the "rate case"; however, in this instance the procedure is lengthy and offers no advantage over the trial-and-error solution. Consequently, this paper covers only the procedure based on the pressure case. DISCUSSION Under the pressure case prediction of withdrawals from a water-drive field, given the future pressure history, involves the use of a nonsteady-state water-influx term together with the material balance equation. The solution of a particular problem requires the following steps: (1) division of past pressure and production data into equal time intervals; (2) computation of cumulative water influx vs pressure drop for each time interval of past history using the material balance equation; (3) determination of the best values for the "time-conversion factor" and the "influx constant" by equating the nonsteady-state influx term with the influx computed in Step 2 (this requires a trial-and-error procedure); (4) prediction of influx for a given pressure drop using the influx term and the computed factors from Step 3; and (5) calculation of fluids produced using the predicted influx in the material balance equation. A forecast of the water-oil ratio or water production rate is required to complete the calculation. It is assumed that a reliable estimate of original oil in place is available, as well as the production and pressure history, and data on reservoir fluid characteristics. If the original oil in place is unknown, it may be computed simultaneously with the tinie-conversion influx factors2,3. However, the oil in place so computed may be considerably in error3; consequently, it is usually preferable to use oil in place estimated from pore-volume data unless there is considerable doubt as to its accuracy. The Material Balance Equation Above the Bubble Point Above the bubble point the simpli-

By F. L. Sizer

SOME old-time views which have recently come into my possession have inspired me to record that part of the early history of Leadville, Color- ado, with which I am familiar, the years 1878 to 1882, in the hope that others will add to what is here mentioned. My first appearance in Leadville was in June, 1878, immediately after graduation from the University of Michigan, and I found a congenial and lively crowd of young men, already there. The old log hotel, at the corner of Pine and State streets, housed some distinguished guests in the summer and fall of 1878. It was my good fortune there to make the acquaintance of James B. Grant, afterwards Governor of Colorado, in July of that year, when we were both glad of the accommodation afforded by cots in the second floor loft of the hostelry presided over by Herman Hibschle. Grant was then building his smelter and our associates were Eddy and James, August R. Meyer, and Berdell and Witherell. The Grand Hotel-Harris and Walsh, pro- prietors-was the first-class hotel of the place; but in a very few months there were many competitors.

Jan 1, 1924

By D. V. BURR

THE ORIGINAL HUDSON RIVER TUNNEL. NOT quite forty years ago a man of uncommon character entered New York. He had several hundred thousand dollars earned by railroad building in the Nest. He was not an engineer, but he had ideas of engineering work which he was destined to prove correct.. He introduced new ways of tunneling, but his plans had only one distinguishing feature-they were simply interesting as showing how such work could be done; they added nothing to the science, have never been used since his clay, and never will be used again. Engineers of repute ridiculed his proposition ; he was an Ishmael in the profession. But if engineers looked askance at him, he certainly returned their contempt in the heartiest fashion, and had no hesitancy about expressing his views of them individually and collectively. This worked to. his disadvantage when he afterward tried to raise the means to go on with the work. He found that the opinion of engineers was respected by financiers, and that money would not flow contrary to their advice. While his conception of large constructions was distinguishingly original, much more marked was his method of demonstrating the feasibility of, his schemes. In the present clays of great undertakings it is the custom to make the other man pay for the experiments. But the man from the West had other notions of how the thing ought to be done. Having wonderful confidence in his own ability and in his perception of the task before him, he used up all his own money before seeking outside assistance. By building several hundred,, feet of tunnel he proved the correctness of his theory, and the tunnel then dug forms a part of the present tube. The result-he failed to finish the tunnel. He was blind in

Mar 1, 1908

By Joseph E. Pogue

THAT the domestic consumption of gasoline displays a marked seasonal variation, with a low in the winter and a high in the summer, is well known. It is logical to expect that the nature of the variation has itself been undergoing a change as a result of improvement in roads, general employment of closed cars; and growth of mass haulage; but so far as I am aware the change in seasonal variation has never been investigated and measured. It is the purpose of this paper to present the method and results of such an investigation undertaken as a contribution to the technique of planning operating schedules now so prominent in connection with the functioning of the industry under a Federal quota system. For the method employed I am in-debted to the suggestions and help of Frederick R. Macaulay', who kindly looked over the work sheets; and credit is due Barnabas Bryan, Jr., for assisting in the computations and the graphic work. Ideas for the approach to the problem were also derived from an article by Aryness Joy, and Woodulief Thomas of the Division of Research and Statistics of the Federal Reserve Board*-.

Jan 1, 1934

By Frederick F. Frick

SPONGE iron as produced at Anaconda is a fine, -35 mesh, impure product, about 50 pct metallic iron, obtained from the reduction of iron calcine at a temperature of 1850°F by use of coke resulting from slack coal. The metallic iron particles are bulky and spongey and precipitate copper readily and rapidly from a copper sulphate solution. Investigation of the treatment of Greater Butte Project, Kelley, ore at Anaconda early showed the desirability of using sponge iron as a precipitant for the copper in solution resulting from desliming of the ore in a dilute sulphuric acid solution. Anaconda had done considerable work on the production of sponge iron in 1914 for use as a precipitant of copper from leach solutions. Some success and considerable experilence were attained at the time. indicating that, sponge iron might be successfully made by a modification of the process used in 1914, a batch process in which an iron calcine was reduced by means of soft coke, resulting from noncoking coal, in a Bruckner-type revolving horizontal cylindrical furnace widely used 50 years ago. The coke and calcide formed the bed in the Bruckner furnace, which was rotated at about 1 rpm. The bed was brought to a temperature of about 1800°F by means of an oil flame over the surface. Although results were reasonably satisfactory, they did not warrant full development of the process at that time. A good deal of work has been done in the last 50 years on the production of sponge iron. The objective in some cases has been the production of a precipitant for copper from solution, but the bulk of the work has been done for the production of open-hearth steel furnace stock. The production of an open-hearth stock presents two problems rather than one: first, producticon of the sponge iron, and second, what is perhaps of equal difficulty and importance, conversion of the sponge iron into a form suitable for use in the open-hearth furnace. So far as is known to the writer, none of the sponge iron processes tried in the past have proved to be economically feasible. However, Anaconda had a combination of conditions appearing to justify an attempt to produce sponge iron which would serve for the leach-precipitation-float process. It was thought that the process used in 1914, if changed to a continuous one, might work out satisfactorily. The following favorable conditions at Anaconda justified the investigation: 1—A sufficient tonnage of good grade iron calcine resulting from the roasting of a pyrite concentrate in one of the acid plants, at substantially no cost. 2—Reasonably cheap natural gas. 3-—The fact that there was no need for production of a high grade product. 4— The fact that there was no need for obtaining a consistently high reduction of' the iron in calcine. A small revolving Bruckner-type furnace about 2 ft ID by 4 ft long was set up for early pilot work at the research building. This pilot furnace showed that a satisfactory product could be obtained at reasonable cost. It also indicated a marked advantage in preceding the reduction furnace with a furnace of similar size and capacity for preheating and roasting out any residual sulphur from the feed. The small furnace was operated for several months, various details of the process were worked out. and sponge iron was produced to supply a pilot LPF plant which treated 300 lb of Kelley ore pel- hr. Later a second pilot furnace 5 ft in diam and 12 ft long inside was set up at our reverberatory furnace building. This furnace confirmed the data of the small furnace and gave a basis for design of the final plant. At Anaconda a pyrite concentrate, running about 48 pct S, is recovered from copper concentrator tailings by flotation. This concentrate is roasted to sulphur of 3 pct or less at the Chamber acid plant. The iron calcine contains about 57 pct Fe and 18 pct insoluble. The iron calcine feed, as mentioned before, is re-roasted and preheated in a reroast furnace preceding the reduction furnace. Both are of the Bruckner type. The reroasted calcine is fed into the reduction furnace at 800" to 1000°F along with 30 pct slack coal. In the feed end of the furnace the volatile is burned from the slack, giving a soft coke which readily serves for reduction of the iron. Hard metallurgical coke will not serve the purpose. since it does not reduce CO readily at a temperature of 1850°F. All indications are that the actual reduction of the iron is accomplished by carbon monoxide below the surface of the bed, which is 30 in. deep at its center. Apparently there is a constant interchange: Fe²O³ + 3CO = 2Fe - 3CO², CO² + C = 2CO Actually iron oxide is reduced by CO at somewhat lower temperature than the 1850 °F used in the process. but this temperature is necessary to obtain a satisfactory rate of furnace production. The furnace atmosphere is generally reducing, and typical blue carbon monoxide flames satisfactorily cover the bed. Gas flames from four 3-in. Denver Fire Clay Inspirator burners are played directly on the bed, which is slowly cascaded by the 1 rpm of the furnace. An excess of coke is necessary to assure maintenance of good reducing conditions in the furnace bed. Part of this coke is recovered for re-use.

Jan 1, 1954

By William J. McCaughey, Richard L. Barrett

FOR sixty years-in fact, ever since the inception of the basic steelmaking process -basic slags have been the subject of study by chemists, metallurgists and petrographers, with the purpose of providing a better understanding of the reactions between the slag and the metal during the refining process. The result of this work and of the researches of mineralogists and physical chemists into the chemistry of oxide systems is a considerable body of literature dealing not only with slags themselves but with equilibrium relationships in systems synthesized from pure components. Since any actual slag is a multicomponent system more complex than any yet worked out in the laboratory, a complete solution to the problem is still far away. The writers have recently published a paper1 which they believe sheds light on the role of the slag in the elimination of phosphorus and it is the purpose of the present paper to discuss the metallurgical applications of that work. Since the pioneer investigations on the constitution of basic slags carried on by Stead and Risdale, Carnot and Richards, Hilgenstock and others in the 1880's, a considerable body of literature on this subject has appeared. Many of the more important of these papers were summarized in the previous paper,' therefore they will not be reviewed here. PETROGRAPHIC STUDY The present writers have had occasion, over a period of years, to examine petrographically a great number of basic steel- making slags having a very wide range of chemical compositions and made under various conditions of operating practice. Although certain of these slags exhibit some unusual features, it is a remarkable fact that the great majority of mature slags show certain typical characteristics, which persist throughout the wide range of chemical compositions. The typical mature slag usually appears under the microscope to consist of two phases. The phase of primary crystallization is light colored and doubly refracting. If separated mechanically and subjected to chemical analysis, it is found to consist essentially of SiO2, CaO, and P2O5. Sometimes, although not usually, two such silicate-phosphate phases are found. The other conspicuous phase is dark in color and optically isotropic, and occurs as the interstitial material between the grains of the light colored phase. This dark colored interstitial phase when analyzed is found to consist essentially of FeO,Fe2O3, MnO, and MgO. In some slags high in iron oxide, particularly those from low-carbon heats, dicalcium ferrite is found. This phase is dark reddish brown in color and anisotropic.

Jan 1, 1944

FREderick H. Davis, Electrical Engineer of the Westinghouse Electric and Manufacturing Co., in charge of the plant at Bodie, Cal. (communication to the Secretary): I beg to offer, to complete the information conveyed in Mr. Leggett's paper, the following report of tests of the electrical efficiency of the power-transmission he has described:

Jan 1, 1895

By Albert Sauveur

AT the New York meeting of the Institute, February, 1914, Professor Hopkinson and Sir Robert Hadfield presented an important paper entitled Research with Regard to the Non-Magnetic and Magnetic Conditions of Manganese Steel.1 Any contribution on manganese steel by its discoverer necessarily carries with it much weight and is entitled to serious and close consideration. The momentous discovery of that alloy by Sir Robert Hadfield some 30 years ago was the signal for great activity in the field of alloy steels; and the remarkable results obtained in the last two decades probably constitute the most important modern advance in the metallurgy of steel. The authors of the paper referred to above are unable to reconcile with the allotropic theory the interesting results obtained by them in heat treating manganese steel. When they speak of the allotropic theory, however, I understand that they have more especially in mind the existence of beta iron. It is not my understanding that they question the occurrence of iron in the two allotropic varieties known as gamma and alpha. If I am wrong, I trust they will correct me. A careful consideration of the experimental results reported and discussed by the authors leads me to believe that on the contrary they can be very satisfactorily explained in terms of allotropy and that, in the light of our present knowledge, they cannot be accounted for in any other way. The physical properties of non-magnetic manganese steel described by the authors are those pertaining to iron-carbon alloys in which iron is present in the gamma condition, or, in other words, to austenite. The metal is then characterized by great tenacity and ductility and low elastic limit, while its hardness, mineralogically speaking, is not excessive, but of a special kind termed "tough hardness" by the authors. Even when subjected to the restraining influence of a large amount of manganese and of considerable carbon, however, relatively rapid cooling

Jan 9, 1914

By Robert B. Fulton

It is a pleasure to talk to you about the world economics of industrial minerals on this occasion of AIME's 100th anniversary. In order to fit this topic into the time and tenor of such a session as this where you are hearing subjects equally broad in scope one after the other, I will deal with the subject through the medium of eight minerals selected to illustrate import- ant economic factors. I must admit to some bias in the selection, since I picked personally familiar ones to elucidate facts of life in the industrial minerals business. It is a very interesting field, different in many respects from metals and certainly far different from petroleum. The minerals chosen are celestite, diamond, fluorspar, salt, sulfur, ilmenite, rutile and zircon. Celestite The market for celestite is mainly in the U. S. where it is consumed in the manufacture of strontium compounds for red-colored flares and other pyrotechnics, for the production of electrolytic zinc, for glass manufacture, and for the manufacture of ceramic ferrites. Smaller markets exist in Europe and Japan. Production comes from England, Mexico and Spain, and a new mining operation is being started in Nova Scotia. There is no significant production in the U. S. nor in the other principal consuming countries, except England; so it is mainly an international commodity. Celestite illustrates many of the factors important in the economics of industrial minerals. To have a marketable product, grade and freedom from deleterious elements are important for materials used by the chemical industry. In the celestite used to make strontium nitrate, calcium is the most objectionable of the commonly associated cations. Selling price is adversely affected because nitrate manufacturing costs are greatly increased if calcium is pre sent, hence less can be paid for the raw material. Meeting specifications can add significantly to the vendor's cost; hence a balance must be struck between the producer's capability and the consumer's requirements, permitting a reasonable profit for both. Sizing of industrial mineral products is often important to the consum-

Jan 1, 1971

By W. Vickers

Single-point rotating cantilever fatigue tests have been carried out at 550" to 650°C on beryllium produced by a variety of fabrication routes. All the specimens gave similar plots of stress against number of cycles to failure but failure occurred at a lower stress range in the hot-pressed material than in the extruded material. A discontinuity or "kink" appears to exist in the curves and this is considered. A true endurance limit was not evident up to 10 cycles. When Brush hot-pressed warm-extruded beryllium was tested at 600oC a relationship where Nf = number of cycles to failure, ?ep = plastic strain range, and c = constant, was shown to be applicable for values of ?ep > 6.3 x 10-4. Further for this moterial and temperature and for frequencies between 150 and 4500 cycles per min, the variation of number of cycles to failure with frequency obeyed the expression N = Af0.44 where N =number of cycles to failure, f = frequency, and A = constant. Examination of the fracture surfaces indicated that they were generally intergranular and in all cases the higher the stress the more irregular was the fracture. Microexamination has shown that grain boundary cavities and fine intergranular cracks were associated with the fractures. REVERSING or cyclic stresses set up in fuel elements can lead to failure by fatigue. Fatigue stresses may be developed by instability of the fuel element in the coolant flow leading to rattling against the channel wall or fin vibration. Thermal cycling also sets up reversing stresses due to differential expansion of fuel and can. Fatigue resistance is of some importance therefore in the evaluation of canning materials. At the time the work described in this paper was initiated, beryllium was being considered for the can and endcaps of an advanced gas-cooled reactor fuel element. With this in mind, beryllium obtained from different manufacturing routes was tested on single-point rotating cantilever fatigue machines at temperatures the same as those envisaged in the reactor to obtain appropriate fatigue data. The results obtained indicated a discontinuity in the S-N curves coinciding with the yield stress in the specimens. Although in some cases the data is insufficient to warrant a detailed quantitative analysis, a qualitative analysis of this effect was thought to be justified. 1) EXPERIMENTAL DETAILS The materials used are given in Table I together with the production route and available analyses. The specimen shape is shown in Fig. 1. The fatigue specimens were machined slightly oversize, after which they were given a stress-relieving anneal of 1 hr at '750° C in vacuum. This was followed by an etch in sulfuric-phosphoric-chromic acid mixture down to the finished dimensions given in Fig. 1. Etching served to remove the interference colored oxide film formed on the surface during annealing and very small recrystallized surface grains too. The specimen was mounted in the grips of a cantilever machine and rotated inside a furnace controlled at the testing temperature. The specimen was loaded in increments as the speed was increased until the required load was applied at 5000 cycles per min. A revolution counter was used to record the total number of cycles.

Jan 1, 1964

INTRODUCTION Trade financing is a particularly important component of short-term financing for a minerals company since errors, extra costs, or payment delays/defaults can easily wipe out the profit margin on a particular shipment or can cause problems when arranging purchases of e.g. reagents. It is required to make any minerals operation function and does not have to be cross-border to require proper management. Sources of working capital are as follows: 1. Extended credit terms from suppliers 2. Inventory loans from banks, finance companies 3. Accounts receivable financing or factoring 4. Credit lines or overdraft facilities from banks. TRADE CREDITS These are provided under the familiar terms "net 10 days" or payment due by the "10th day of the following month." Thirty days for payment is usual but longer periods can be negotiated with regular suppliers. Shipment may be made on open account with specified periods for settlement. In the mining industry, a custom smelter gains trade credit by paying for concentrates three months after the month of shipment. INVENTORY LOANS Various forms of inventory finance are provided via "floor-plan" or warehouse financing. A set percentage, usually 60%-80%, of a good-quality, readily saleable inventory item (e.g. bullion, concentrates, ingots) will be provided by a bank or finance company which will usually have security over these products and has a right to inspect the goods from time to time. Legal security will he achieved by warehouse receipts, floating liens, chattel mortgages, trust receipts, or through collateral management service companies. The latter certify control over stock or distribution outlets and often carry insurance against fraud. Costs range around 1.5% - 2.0% p.a. or more plus some fees to cover out-of-pockets or other costs. ACCOUNTS RECEIVABLES Accounts receivable financing is based on the company's generation of satisfactory receivables which are continuously assigned to a bank or finance company ("factoring"). Because of the risks in being able to collect receivables, such as payments to a smelter for its blister copper shipments to a refinery, this form of financing costs as much as 3% - 5% of the debt amount purchased plus an additional charge for processing paperwork. Receivables can be purchased with or without recourse and on a notification or non-notification basis to the client's customer to, respectively, pay the invoice directly to the bank or not. LETTERS OF CREDIT Letters of Credit ("L/C's") are a common feature of international trade finance whereby a bank, at the request of the buyer, issues a written undertaking to an exporter to pay a specified sum of money within a set time on presentation of previously specified documents. This undertaking means that the exporter is no longer relying on the credit standing and integrity of the foreign importer. A dispute about shipment does not otherwise affect the obligation to pay upon presentation of a "clean" set of documents. These documents include the hill of lading and other documentation, often on standard "form" bases. There are a number of conventions and techniques in L/C's such as irrevocable/revocable L/C's, time L/C's, confirmation/advising L/C's and transferable L/C's. These are tools to adjust for the varying risks that the importer will not pay. Other routes where one is comfortable with an importer include documentary sight hills (D/P hill), documentary term bills (D/A bill), and, of course, open account.

Jan 1, 1985

By Roy W. Wright

Introduction The title of my paper is satisfyingly broad and allows me to touch lightly or dwell at length on virtually any aspect of mining, while endeavouring not to trespass on the subjects of other papers to be presented. However, at this stage in our world history when for the first time we are beginning to take conservation and the welfare of future generations more seriously, I want to concentrate mainly on the question of whether or not there will be the resources of minerals available to sustain mankind's progress in the generations ahead. Metals and the Population Problem The supply of raw materials is of course only one of the fundamental problems that will face future generations: if we assumed that the world population would continue to increase at the present explosive rate, then I believe we can say with certainty that other fundamental problems of much greater significance would arise long before a shortage of raw materials - or other substitutes -had any impact on the progress of mankind. Thus, I must start this paper with the assumption that some equilibrium in population will be arrived at before these other problems overwhelm the world. Will the Metals Run Out? At the 75th Anniversary Meeting of this Institute in March, 1947, Clinton H. Crane, President of St. Joseph Lead Co., prophesied that for the next 100 years there would be enough copper, lead and zinc for every essential need. He defined a need as essential where the qualities of the metal in that use were irreplaceable. Today, except for one or two cases such as lead in lead-acid batteries, few metals have qualities that cannot be provided either by another metal or by another material. It is more a question of what the engineer or manufacturer is prepared to pay for special qualities as compared with using cheaper materials and perhaps a less satisfactory design.

Jan 1, 1971

By W. R. Ingalls

I WAS led some time ago to draft a statement of economic principles immediately affecting our national welfare from the standpoint of the engineer. It was the intention to offer this to the American Engineering Council as a resolution to be adopted, or a declaration to be made, of course after suitable con-sideration and debate. The presentation has not been . formally made, but I have been asked to let it be made to the mining engineers through the medium of MINING AND METALLURGY, the American Institute of Mining and Metallurgical Engineers being a constituent part of the Federated American Engineering Societies. I shall welcome any expressions of opinion that this statement may inspire. The statement follows: The engineers of, the United States, functioning through the American Engineering Council of the, Federated American Engineering Societies, feel it their duty to advise the American people respecting the present state of economic affairs in the nation, just as an individual engineer would his client. The people of the United States constitute a great corpora-tion, whose business affairs are analogous to those of a commercial company -multiplied many times. The engineers feel constrained to offer their opinion owing to the responsibility to do things which rests upon them. Confronted by the steady impoverishment of natural resources and the operation of the economic law of diminishing returns it devolves upon management, functioning through the engineering profession aided by scientists, to make such improvements leading to increased production and such elimination of wastes as to offset the increasing adversities of nature merely to hold our own; and to do more than offset them in order to improve the scale of living of the people. The engineers accept this responsibility, but in so doing they demand attention to their advice respecting fundamental economic matters, lest they be unduly hampered in the performance of the professional duties, which they acknowledge. The American Engineering Council therefore declares the following as the advice of engineers to the American people:

Jan 8, 1923

By D. J. Jr. McAdam

This paper presents stress-cycle graphs for five samples of monel metal and three high-strength aluminum alloys. These graphs are evidently curves with horizontal asymptote. The position of the horizontal asymptote can be determined with sufficient accuracy by extending the experiments to not more than 50,000,000 cycles. For some of the graphs, there is a slight downward slope between 50,000,000 and 100,000,000 cycles. The slope is so slight, however, that, extrapolation from 50,000,000 to 100,000,000 cycles gives the endurance limit with sufficient accuracy. Monel metal and duralumin are not exceptional among non-ferrous metals in endurance properties. IN Part I of this paper' a comparison was given of the results obtained in investigation of the endurance properties of non-ferrous metals in .three laboratories: the Engineering Experiment Station of the University of Illinois, the U. S. Air Service at McCook Field, Dayton, Ohio, and the U. S. Naval Engineering Experiment Station, Annapolis, Md. Part I was devoted to a discussion of the forms of the stress-cycle graphs obtained at the three laboratories. For comparison, typical graphs obtained at the three laboratories were plotted on the same semi-logarithmic scale. The typical rotating-cantilever graph for ferrous and non-ferrous metals obtained at the Naval Experiment Station was described as a curve descending with gradually decreasing slope to a horizontal line. In the reply to the discussion of Part I, however, this graph was described as a curve with horizontal asymptote. It. was also said that the ordinate of the asymptote (the endurance limit) could be determined by endurance tests of not more than 50,000,000 cycles. This description was intended to apply only within the range of ordinates used in plotting an ordinary endurance graph. It was recognized that if .extended upward beyond the usual field, the curvature of the graph would decrease until -the graph would either approach a straight a line or possibly reverse its curvature.

Jan 2, 1926

There was such a large demand for copies of the speech of Herbert Hoover at the A. I. M. E. dinner given in his honor on Sept. 16, that a special edition has been run off; anyone desiring copies may obtain them by applying at the office of the Secretary.

Jan 12, 1919

By Dennis J. McCarthy

TAX TREATMENT OF EXPLORATION AND DEVELOPMENT EXPENSES Exploration Expenditures General Principles. Exploration expenditures are expenses incurred within the United States or the Outer Continental Shelf for the purpose of ascertaining the existence, location, extent or quality of any deposit of ore or other mineral. Section 617 of the Internal Revenue Code permits a taxpayer to elect to deduct these expenditures currently. In default of election, exploration expenditures must be capitalized and included in the basis of the mineral property for purposes of determining cost depletion. Entitlement to Deduction. In order to qualify for current deduction, exploration expenditures must be incurred prior to the commencement of the development stage, i.e., when mineral deposits are shown to exist in sufficient quantity and quality to reasonably justify commercial exploitation. Generally, expenditures for geological and geophysical investigations, reconnaissance, surveying, testpitting, trenching, drilling, driving of exploration tunnels and adits and similar types of work constitute exploration expenditures if incurred prior to the commencement of development. However, expenditures to further delineate the extent and location of an existing commercially marketable deposit are not exploration expenditures. Exploration expenditures may be incurred from within a producing mine to ascertain the existence of what appears to be a different ore deposit. Expenditures for property which is subject to an allowance for depreciation are not deductible under §617. However, depreciation properly allowable on assets used in exploration is an exploration expenditure. Election to Deduct Exploration Expenditures. The election to deduct exploration expenditures is made by deducting these expenditures in the return for the first taxable year for which such treatment is desired. The election applies to all properties of the taxpayer. Once the election is made all exploration expenditures, in the year of election and thereafter, must be deducted, unless the election is revoked with the prior consent of the Commissioner. The Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA) made substantial changes in the treatment of exploration expenditures. For exploration expenses incurred after 1982 and before 1984 by a corporation, the amount currently deductible is limited to 85% of the expenditure. The remaining 15% must be capitalized and recovered over a five-year period. Although exploration costs capitalized under this provision are not part of the basis of the property for cost depletion purposes, investment credit may be claimed with respect to these expenditures. Further changes have been added by the Tax Reform Act of 1984 with respect to expenditures made after 1984. The Act reduces the amount of otherwise currently deductible costs from 85% to 80%. Additionally, it limits the availability of the investment credit for capitalized mineral exploration costs to deposits located in the United States. TEFRA also allows individuals a special method of recovery under which exploration expenditures may, at the election of the taxpayer, be amortized ratably over a 10-year period beginning with the year in which the costs are paid or incurred. If taxpayer does not use this method, the excess of the exploration expenditures actually deducted over the amount that would have been deducted if 10 year amortization had been elected is an item of tax preference subject to the alternative minimum tax.

Jan 1, 1985

By F. W. Bloecher, A. M. Gaudin

Using an adsorption-column technique the partition of dodecylamine between quartz and water has been determined at concentrations ranging from 0.5 to 4000 mg per liter. The adsorption varies as the square root of the concentration. Attachment of dodecylamine to quartz is reversible. The amount adsorbed in a flotation operation giving almost complete recovery is under 5 pct of the amount required for a monolayer.

Jan 4, 1950

J. S. UNGER,* Pittsburg, Pa, . (written discussion?).-The author of the paper has given an excellent description of the appliances used to cool parts of an open-hearth furnace, and some of the reasons why the refractories fail in service. Personally, I favor water-cooling, but to a limited degree. At one time I advocated more universal cooling than is now practised, but believe I must change my mind. Water-cooled, thin-lined blast furnaces have not proved as satisfactory as anticipated. While this may retard the building of many such furnaces, it will not prevent the use of regular tuyere- and bosh-cooling appliances. Water-cooling any furnace may be easily carried to the extreme. In an open-hearth furnace, excessive port or roof cooling, or cooling the working floors may preserve the lines of the furnace, lower the cost of refractories, acid to the comfort of the workmen, and necessitate fewer shutdowns for repairs, but it may not be good economy on account of the high first cost, the cost of cooling water, maintenance of cooling appliances, and the immediate reflection in a higher fuel cost. The question becomes a financial one, and is answered by using water-cooling devices up to the point at which they cease to show true economies. Open-hearth furnace bulkheads, roofs, and ports fail rapidly in about the order named. If they could be made to last indefinitely by water-cooling, the furnace would still have to be shut clown periodically for cleaning the slag pockets, regenerator chambers, and flues. Extra, or spare, pockets and regenerator chambers have been advocated to permit of continuous operation, but the space required, the cost of installation, and the fuel required to initially heat such cold chambers will largely prevent their adoption. Some particular fuels, as high-ash powdered coal, require frequent stoppages for cleaning, but for this particular fuel a special provision can' be made.

Jan 5, 1919