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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 Ove Alm

Wet and dry specimens of three rocks of approximately granitic composition were deformed at different experimental conditions. These experiments were carried out in order to study the extent to which water, either added or released from mineral reactions, may affect the mechanical properties and the microstructure of these rocks. The experiments were conducted in a Griggs&apos; hot creep apparatus at temperatures and pressures up to 900ºC and 1000 MPa respectively; and most of them were performed in the constant strain rate mode [(1.10-6 < t < 1 • 10-4 s-1 )]. All three rocks were low porosity rocks, and the wet specimens never contained more than 0.9 wt % of added water. The experimental results are, however, quite unequivocal: They show that wet rocks are weaker than dry ones. A significant difference is even found for rocks tested in uniaxial compression at room temperature. A few experiments carried out on specimens obtained from larger prestressed rock cores indicated that the central parts of these cores were more likely to contain more microcracks than the ends. Optical microscope examinations revealed that extensive microcracking takes place even at the highest temperatures, where other mechanisms such as slip and dislocation creep also become important. Very little partial melting could be observed except for the specimens deformed at 900ºC.

Jan 1, 1982

Jan 1, 1897

By E. Northcott, I. M. LeBaron

Before describing the electrostatic processing of feldspar, it might be well to review some of the basic definitions and terminology of feldspars. The feldspar minerals constitute a group of alumino-silicates of potassium, sodium, and calcium. Barium feldspar sometimes occurs naturally but is very rare. Hardness varies between 6 and 6.5 and specific gravity between 2.5 and 2.8. Color is generally white or pale shades of red, yellow, or green. The approximate chemical composition of the principal feldspars is given in Table I. The albite (sodium aluminum silicate) and an-

Jan 1, 1959

By L. F. Bishop

THE ore bodies of the Butte district1 are found in many different vein systems having many different structural characteristics; some are narrow with self-supporting ore but with weak walls; some are wide with weak or strong ore and weak walls; some of the veins dip steeply and others do not; some have well defined walls, and others, in the "horsetail" area, are mined to sample limits. Consequently, many types of stoping methods are used in mining these ores. The stoping methods used in the Anaconda Copper Mining Company&apos;s properties are the square-set and cut-and-fill. The square-set method is the principal stoping method used because, generally speaking, the ore and walls are weak, the ore is high grade, and good extraction is required. These square-set stopes may be classified as conventional, vertical slice, slot, timber rill, and Mitchell slice types. The conventional type square-sets are those of various shapes and sizes, mined by horizontal slicing to the boundaries of the stopes. The rock is slid to the chute and the filling is moved by gravity. The ore and waste may be handled with a scraper when local conditions require it. The vertical-slice square-set system is the type used in narrow veins that are mined in vertical panels. The slot stopes are stopes in wide veins that employ a slot across the vein instead of a con- ventional chute to handle the ore. The timber rill fs a type of square set in which the ore is mined as in inclined cut and fill but the square-set timber is used. The Mitchell slice is the type used for some broken or heavy ore blocks, or for pillar extraction between two converging slot stopes. The cut-and-fill method is used where the ore will stand without much support although the walls may be weak. The principal type of this method is the horizontal cut-and-fill, with mechanical scraping. The inclined cut-and-fill, or rill, stopes are used in some veins too narrow for scraping. The production from the various meth: ods in use for the second six months of 1944 are shown in Table I. [ ] This paper deals mainly with the vertical slice and slot types of square-set stoping, because of their effect on production locally and their potential possibilities here and in other districts, with sufficient reference to conventional square-setting for comparison.

Jan 1, 1945

By M. Cross

INTRODUCTION The results of the Japanese dissective investigations have [l-4] transformed our understanding of how the blast furnace operates. These studies revealed an internal structure of the furnace burden with five main zones, as illustrated in Figure 1. In the granular zone the charged material retains its structure whereas in the cohesive zone the iron ore particles are at advanced stages of reduction and form a semi-molten mass with a relatively high flow resistance. In the active coke zone molten iron and slag flow through a matrix of loosely packed coke. The raceway is a relatively small void space generated by displacement of coke due to the hot blast momentum, whilst the hearth is packed with coke, slag and molten iron. [ ] It is now well appreciated that furnace control is largely achieved and maintained by using the burden charge distribution to determine the gas glow distribution within the furnace and, hence, the shape and extent of the cohesive zone. In fact, Wakayama et a1 [5] of Nippon Steel Corporation state that optimum furnace operation is synonomous with the formation of a desirable cohesive zone shape, which in turn is almost solely determined by the burden charge distribution and its mechanical properties [6]. Much of the development work on operating furnaces since the dissective investigations has been oriented towards the identification of external furnace measures which reliably predict the shape of the cohesive zone. Currently the most popular measures are top gas temperature, velocity and CO/CO, ratio profiles [5]. More recently pressure distributions as evaluated from a series of wall measurements down the height of the furnace are also being utilised [7] to identify the position and shape of the cohesive zone. A great deal of emphasis has been placed upon achieving a consistent quality in the burden charge materials, establishing a suitable set of operating conditions and only making changes when forced to, ie., the operation for some reason moves outside a desired operating range or the production requirements change. Operational control schemes based upon this philosophy (eg., Kawasaki&apos;s GO-STOP system [8]) have been remarkably successful at achieving both high production rates and relatively low fuel costs. Mathematical models have long been used as tools to assist in the analysis of the blast furnace process. Although, the models have been useful in post-operative analysis and for identifying trends, etc., they have not proved reliable for detailed design criteria or as the basis for effective control schemes. Such mathematical models have moved from simple statistical correlation, through overall and stagewise heat-and-mass balance calcu-

Jan 1, 1984

Jan 1, 1971

This consolidated index covers all publications of the Institute for the years 1926 through 1935. The following list indicates subjects of volumes and gives numbers or abbreviations used to designate them. TRANSACTIONS VOLUME *G26. Petroleum Development and Technology in 1925 (Published in 1926). *G26. Petroleum Development and Technology in 1926. *E27. Institute of Metals Proceedings. 73. Nonferrous Metallurgy, Milling and Concentration, Nonmetallic Minerals, Institute of Metals and Iron and Steel. [ ]

Jan 1, 1936

By J. C. Fisher

Nucleation theory is applied to martensite nucleation in substitutional iron alloys. Composition fluctuations are neglected, and a steady rate of nucleation is predicted for any composition and temperature. The maximum rate of nucleation (as a function of temperature) is shown to be measurable only for on extremely narrow composition range, being too great or too small outside this range. A number of experimental observations, including completely isothermal transformation in some alloys and composition-dependence of M. temperature in others, are compared with the calculated behavior. IN a previous report,¹ nucleation theory was applied to the formation of isothermal martensite in an Fe-Ni-Mn alloy. The experimental observations of Cech and Hollomon² were accounted for quantitatively. It now is of interest to examine the predictions of nucleation theory with respect to martensite transformation in substitutional iron alloys of other compositions. Since Fe-Ni alloys have received considerable attention, both as to their transformation kinetics and their free energies, they will be treated in detail, although the results apply with equal validity to other substitutional alloys. In substitutional alloys, where composition fluctuations can be neglected in volumes of critical nuclear size, the rate of nucleation of martensite in subcooled austenite is¹ n - Nv exp (—W*/kT) [I] where the free energy of formation of the critical size nucleus is W* = 8192 p (?² s³) [2] In the expressions for n and W*, the symbols have the following meanings: N is the number of atoms per unit volume; v, the atomic vibration frequency; 8, a function of the elastic constants of austenite and the shear angle of martensite; , the austenite/mar-tensite inter facial free energy; and ?fc is the free energy change per unit volume accompanying the transformation. Jones and Pumphrey² have determined the austenite to martensite free energy change as a function of nickel content and temperature for Fe-Ni alloys. Their expression is ?F = 2500 C + 1.25 (1 —C)?FFc cal per mol [3] where C is the atom fraction of nickel, and ?Ffe is the free energy change per unit volume for pure iron as tabulated by Zener4 (or, equivalently, Fisher"). From Eqs. 1 to 3, it is possible to calculate isothermal nucleation rates as a function of temperature and composition for Fe-Ni alloys. The only unknown parameter is (?² s³). The best value of this parameter for Fe-Ni alloys, determined from M. temperatures in a manner to be described shortly, is (?² s³)= 9.92 (10)21 cgs units [4] Taking this value of (?² s³), C-curves for isothermal nucleation were calculated for Fe-Ni alloys of several compositions, and are plotted in Fig. 1. It is evident from Fig. 1 that completely isothermal nucleation of martensite in Fe-Ni alloys can be observed experimentally for only a very narrow range of compositions. Cech and Hollomon find that a nucleation rate of about 10&apos; nuclei per cc per sec is as fast as they can follow dilatometrically, and a rate of about 10-1 nucleus per cc per sec is about the slowest that can be measured conveniently. If the nucleation rate is to lie between the limits 10-1 10 the nickel content of an Fe-Ni alloy must fall in the atomic fraction range 0.299 5 C 5 0.302. Nickel contents lower than 0.299 correspond to nucleation rates too great to follow, and those higher than 0.302 to nucleation rates too slow to measure in a reasonable time.* In view of the narrow corn- position range in which successful isothermal measurements can be made, it is not surprising that only one substitutional alloy has been described&apos; that comes close to being in the proper range.

Jan 1, 1954

By RUSSELL C. FLEMING

GILSONITE is a brilliant black, tarry-like bitumen, classed technically with glance pitch and graharnite as an asphaltite. As found it is brittle, breaking much like ice, and has a conchoidal fracture. Purest forms are used in the manufacture of paints, varnishes, electrical irisulatiorl, and inks for rotogravure; molded articles such as switch handles, telephone mouthpieces, and but- tons are made from the intermediate grades, and the poorer grades are used for the saturation of felt. According to the U. S. Bureau of Mines figures, production grew from about 4000 tons mined in 1904 to 55,000 tons in 1929. This asphaltic substance is found only in the Uintah basin in northeastern Utah, in veins over a wide area. Veins in the vicinity of Fort nuchesne were first discovered about 18G2, on what was then the Uintah Indian reservation, and the vein matter was originally called Uintaite because of that fact, In the early days, S. H. Gilson. of Salt Lake City, was so persistent and zealous in his efforts to develop the deposits and find a market that the name gilsonite was given to the material. Later, the wider and more renowned wins near Wayson and Dragon, in extreme eastern Utah, became the main supply.

Jan 1, 1932

By A. W. Schlechten, R. P. Abendroth

Jan 1, 1960

By Paul. D. Merica

I LIKE to look upon the award this year also as a recognition of the importance of metallic materials of construction to the engineer and of the active progress which I believe is continually being made in almost all branches of that field today. It has been said that metals are the material backbone of industry and technology. Well in that case, I suppose we metallurgists are industry&apos;s bonesetters. And it is possibly not inappropriate that we should occasionally give some atten¬tion to those bony structures of our industrial activities upon which engineers in other fields hang their manifold and striking creations. What is going on in the field of metals development? Well, in the first

Jan 1, 1938

By James M. Link

Slurry transport of industrial minerals has proven to be practical, economical, and efficient. Industrial minerals currently being pumped for long distances include cement, clay, phosphate, sand, and various waste product from industrial mineral processing operations. This paper will touch upon the basic theory of hydraulic transport of solids and then consider the economic and engineering considerations upon which construction and operation of such a line would be based. Where possible, actual cost data will be presented.

Jan 1, 1974

By CHARLES W. BENTON

THE following paragraphs comprise such information as the Secretary has been able to obtain concerning the members and associates whose deaths have been reported. Further particulars or corrections of errors, and biographical data concerning deceased members or associates not already noticed in this way, are solicited. Charles IV. Benton was born at Kezar Falls, Maine, Nov. 12, 1843. We have no accurate knowledge concerning the early part of his career. In 1871 he engaged with the N. Y. Honduras Rosario Mining Co., at San Juancinto, Honduras, C. A., and later was employed at the Monserrat mine at Yuscaran, and at Santa Lucia, Honduras, with the Tenero Mining Milling Co. of Pennsylvania. In 1897 he became a member of the Institute. At the time he was stricken with his last sickness he was employed at the Paymaster mine at Tucson, Ariz. He died at Fairmount, Denver, Colo., Sept. 9, 1907. William R. Boggs, Jr.-The notice in the Bulletin for January was incorrect in saying that the murder of Mr. Boggs occurred while he was employed as metallurgical. manager by Mr. W. B. A. Dingwall, at La Maroma, San Luis Potosi, Mex. Mr. Dingwall writes that in March, 1907, Mr. Boggs left him, to return to his home at Winston, N. C., whence he. subsequently went to Durango, Mex., to take, with the Topia Mining Co., a position which he occupied at the tine of his death, Nov. 17, 1907. Mr. Dingwall says that, while in his service, Mr. Boggs never had any trouble with the workmen, but was esteemed and liked by them, as by all who knew him ; and adds, injustice to the State of San Luis Potosi, that the population, even in the mining-camps of that State, is orderly and law-abiding, and that the authorities are vigilant and just. Our

Mar 1, 1908

By John A. Mathews

RESEARCH in the steel industry, as in other lines of manufacturing, has for its principal purpose the increasing of profits. That is what manufacturing companies are for, and all departments of the organization must be so coordinated as to lead to profitable operation. To divide a payroll into productive and non-productive labor is misleading. Productive labor, in fact, is necessary labor, and non- productive labor is the labor we can get along without. One might as well say that the steering wheel is not a part of an automobile as to say that the directing minds of an industry are non-productive. Legitimate manufacturing profits in a steel company or any other company are the reward that the public pays for service rendered or risk taken. The desire for profits is the impelling motive that leads investors .to take risks and build up industries that give employment to others. Every department of a company, be it executive, manufacturing, financial, sales, or research, must contribute to the one end which brings success-profits.

Jan 1, 1921

The pellet plant, built by Dravo Corp, in Groveland, Mich., for the Hanna Mining Co., is now in full operation. Although using jasper, a type of iron ore with low iron content (approximately 28% Fe), the plant has a rated capacity of 1,250,000 tans of pellets per year. In its four years of existence, the nearby concentrating plant has seen its capacity increase from 700,000 tons to 1,500,000 tons a year as part of a major expansion program at Groveland. Utilizing the Dravo-Lurgi continuous grate process, the pellet plant produces %a-in. pellets of more than 60% iron content. The fully-hooded pelletizing grate, largest in the U.S., is 9 ft. 10% in. wide and 223 ft. 1% in. tong over 34 windboxes, with an effective hearth area of 2195 sq. ft. Drying, firing, and cooling functions are all carried out on this single piece of equipment.

Jan 4, 1964

By Linn Bradley

Introduction MARKED differences of opinion have been expressed by engineers interested in cleaning iron blast-furnace gases for use in hot-blast stoves and under boilers, in reference to the advantages of a hot-dry method over a cold-wet method. One point at issue involves the sensible heat energy in the moisture contained in the gas. Some advocates of the cold-wet methods claim that the condensation and resultant removal of the greater portion of this contained moisture by wet scrubbing, spraying or similar methods, results in a saving of some of this sensible heat energy, by reason of the fact that water vapor has a high capacity for sensible heat energy and may carry from the exit of a hot-blast stove, for example, more heat units than are sacrificed or lost when the gas is cleaned by this cold-wet method. Other advantages claimed for the latter method are: That gas burns more readily when it is free from moisture in any form; that because gas is made denser by cooling and removing the moisture it has a higher calorific value than hot gas carrying moisture; and that higher flame temperatures are obtained when the gas is cleaned by the cold-wet method. A search through the available literature fails to disclose any extensive calculations or records of conditions obtained in practice, bearing upon these phases of gas cleaning. This paper deals with these problems from the standpoint of the economy of using a gas of higher flame temperatures, of improved stove design, and of economy in the gas-cleaning department. Calculations have been made which show that by cleaning the gases by a cold-wet method the sensible heat energy of the blast-furnace gases is greatly reduced; and, in general, this loss of heat energy is far greater than that lost from the stoves or boilers due to the sensible heat capacity of the water vapor if carried away by the exit gases. By making use of the

Jan 2, 1917

By J. B. Dyess

TARNISH films on some of the common metals (particularly on copper and silver) have been of much scientific and commercial concern for a long time, but before the development of the electrical method1 of measuring film thicknesses there was no satisfactory quantitative approach by which to study the separate parts of these complex films. This method has been adapted to the measurement of duplex (cuprous-cupric) oxide films on copper .2 In the present work it has been used to measure tarnish films on copper when they were mixtures of cuprous oxide and cuprous sulphide, and also when they contained cuprous oxide, cupric oxide and cuprous sulphide, each component part being measured at a different potential value. Oxide-coated copper specimens, prepared by heating copper in air at chosen temperatures for given periods, were exposed to moist hydrogen. sulphide in air to form the various oxide-sulphide films studied. The comparative resistances afforded by (1) different thicknesses of oxide films, and also (2) equal thicknesses of oxide and sulphide films, against severe attacks of hydrogen sulphide were measured. The electrical method requires that the time be observed for the cathodic reduction of each part of the film substance, and these respective time values multiplied by the constant current give the corresponding quantities of electricity expended. Then each millicoulomb per square centimeter represents a film thickness of T= MX10 8 2D X 96,494 X 103 (a) where M is weight of oxide (or sulphide) giving one gram-atom of oxygen (or sulphur) for cathodic reduction, D is density of the oxide (or sulphide) and t is the thickness in Angström units per millicoulomb per square centimeter. The value of t for cuprous sulphide (cubical) is 14.27, and is obtained by substituting 5.78 for D and 159.20 for M in equation a. Previous values2 of t for cuprous and cupric oxides (12.36 and 6.39, respectively) were used in the present work.

Jan 1, 1939

By René de Batz

From 1754 to the end of 1895 the production of gold in Russia had been approximately as follows: Kilogrammes. Russia proper (Finland and the Caucasus),. .. 890 The Ural Region,........505,386 Western Siberia,........116,937 Eastern Siberia,........1,218,372 Total,.........1,841,085 of the value of more than $1,200,000,000.

Jan 1, 1899