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By AIME AIME

THE meeting of the Petroleum Division at Houston, Oct. 10-12-headquarters, Rice Hotel-was preeminently a technological success. Two hundred and twenty-five attended the Thursday morning session and approximately 200 attended the sessions on Thursday and Friday afternoons and Saturday morning. Harry Power, Chairman of the Division, in his opening remarks, credited Paul Weaver and M. Albertson, respectively chairman and vice-chairman of the local committee, with working long and prodigiously in organizing the program. The theme of the initial session was indicated by Mr. Albertson in a statement relative to the estimation of developed petroleum reserves. He said that the problem of securing more accurate estimates of developed petroleum reserves existed prior to curtailment of production. With curtailment, however, the problem became an acute one. Mr. Albertson gave some of the more important reasons for this situation. Since the decline-curve method became inapplicable, the volumetric method has become the chief one used. It depends on the factors of productive formation volume, porosity, saturation, and recovery. He briefly discussed the factors necessary for application of the volumetric method. P. P. Gregory discussed the estimation of petroleum reserves in prorated lime¬stone fields (see his paper in the October

Jan 1, 1935

By W. F. Wheeler

IN the study of the coals of Illinois now being carried on by the State Geological Survey, an attempt is being made to determine the most satisfactory basis of comparison between different coals. The following discussion is based upon work done for the survey in the laboratories of the State University and under the general direction of Prof. S. W. Parr. " Pure coal " has been defined by Mr. A. Bement1 as ash- and moisture-free coal, and the use of this " pure coal " as a basis for comparing different bituminous coals has lately been much discussed among engineers in the middle West. By some the B.t.u. of the pure coal is being used to check calorimetric results, and to calculate the calorific value of different coal-samples from the same seam, for which purposes it is necessary to assume-first, that the composition and calorific value of pure coal from different parts of the same coal-seam are uniform, and, second, that these values remain constant after the coal is mined, both of which assumptions there are reasons to believe are inconsistent with the facts. Certain variables are included in pure coal, as ordinarily defined, and disregard of them may lead to serious error. In any event, where delicate shades of difference are involved, no sure interpretation of results can be made, unless these variables be eliminated. As a basis of comparison between coals, ash- and moisture-free coal is much to be preferred to " dry coal," and still more is it to be preferred to " moist coal," as ordinarily reported in analyses. There are, however, two constituents other than ash and moisture which are similar in effect to them, and which

Jan 1, 1908

THE third annual Joint Western Mining Convention, held at Los Angeles, Sept. 10 to 13 inclusive, was a notable success both as to attendance and interest. Registration the first day amounted to 201, and the total crept up to 347 before the close. The American Institute of Mining Engineers was well represented, approximately 80% of those registered and most of the speakers being members. This illustrates largely the amount of interlocking membership and the reason for holding at one time and place meetings of the several related organizations. The plan has proved so successful that it is probable that Spokane will extend an invitation for next year that seems likely to be accepted. It is proposed that the convention be timed so as to permit visitors from the East to stop there Oct. 3 to 5, en route to the American Institute of Mining Engineers meeting at San Francisco, Oct. 7 to 9. Simultaneously, it is expected that the Petroleum Division will hold its fall session at Los Angeles, the two streams of travel meeting in San Francisco, just before departure of the party of engineers traveling to Japan to attend the World's Engineering Congress. The Los Angeles meeting opened Monday morning with a general session under the auspices of the Western Division of the American Mining Congress with Philip Wiseman in the chair. After a series of short responses to the welcome extended, Charles W. Merrill discussed the needs of the western mining industry. A complimentary luncheon to members and delegates followed.

Jan 1, 1928

By L. D. Frink

Those actively interested in mining are fully aware of the ever-increasing difficulty of making conditions such that efficient work can be done in underground openings, especially as higher rock temperatures are encountered in depth. This is also true where an effort is being made to cut down the burden of overhead expense by working headings 24 hr. in a day if blasting is done as often as is possible in that time. That the conditions resulting from both these causes have driven the native-born Americans from the mines and that their places have been taken by less efficient foreigners is a fact that we must all admit. The great war now being fought in Europe and the educational qualification clause written into our immigration law by the last Congress will probably limit very materially the supply of labor, such as we are now using in our mines, and will force upon mine operators the necessity of making this work appeal again to Americans. Metal tubing, with blower or exhaust fans, has long been used in supplying air to dead ends where natural ventilation is impossible, or in driving the smoke from such places, or in doing both, as the need might be. Here in Butte we have now come to use canvas tubing very extensively and find that it has many advantages not possessed by the metal. The use of flexible tubing is not new, but it has not been generally used in mining operations. Recent improvements, however, in the canvas itself and in the jointing of sections and manner of suspension have so increased its usefulness that it promises to add much to the efficiency of mining. There is now on the market a product that is impervious to air, is fireproof, and has a system of jointing which permits it to be put up or taken down in a few seconds. In this article an effort will be made to explain the manner in which canvas tubing is being used in the North Butte company's operations at Butte, Mont. The accompanying photographs will, I hope, help make clear what may be done with this material.

Jan 1, 1918

By W. A. Ver Wiebe

Under the impetus of new demands caused by the war, the oil and gas industries of Kansas established new records during the year 1942. In all, 1513 test wells were drilled, which is somewhat of a drop from the figure of 2113 for 1941. The 1513 tests yielded 800 new oil wells, 85 new gas wells, and 628 dry holes. Thus there was an increase in two categories, the gas wells and the dry holes. Considering that last year only 592 dry holes were completed out of a much larger total, the figure of 628 dry holes causes some concern among local operators. The increase in unsuccessful tests illustrates once more the fact that each year it is becoming harder to find the remaining oil pools. When the figures are broken down, it appears that western Kansas accounted for 1177 tests, of which 689 were oil wells, 33 gas wells, and 455 dry holes. The total potential daily initial production uncovered by the successful wells amounted to 753,178 bbl. of oil and 619,734,000 cu. it. of gas. The figures for new initial production indicate a substantial drop from last year's figure of 1,691,000 bbl., and the figures on gas are slightly higher. In 1941 the new gas as based on a daily potential was 508,000,-000 cu. ft. In eastern Kansas, 336 wells were drilled. Among these in were oil wells, accounting for a daily initial potential production of 16,199 bbl. The new gas wells numbered 52 and added 253,725,000 cu. ft. per day to the gas potential production of the state. The remaining tests, 173 in number, were dry. It is interesting and perhaps significant that about half (630) of the wells drilled in western Kansas were drilled by the independent operators. Among the large companies, the Cities Service Oil Co. drilled 163 wells; the Stanolind Oil and Gas Co., 52; the Skelly Oil Co., 39; the Continental Oil Co., 48; and the Shell Petroleum Co., 21 wells. In eastern Kansas the independent operators drilled 297 out of the total of 336 wells. Among the major oil companies the Cities Service Oil Co. drilled 19; the Phillips Petroleum Co. 7; and the Sinclair-Prairie Oil Co., 6 wells. The figures based on relative percentages of dry holes to successful oil or gas wells are revealing. In western Kansas almost one half of all wells drilled by the independent operators were dry holes. The major oil companies drilled approximately 547 wells in western Kansas, of which 379 were successful in finding either oil or gas. It thus appears that the major companies fared better than the independents. In eastern Kansas the major companies drilled 39 wells, of which 29 were successful in finding commercial quantities of oil or of gas. No less than 329 wildcat test holes were put down in western Kansas and 105 in eastern Kansas, or 434 in all, during 1942. Considerably more than half of these were drilled by independent operators; 223 in western and 99 in eastern Kansas. An exploratory hole 56 mile or more from production is regarded as a wildcat well in Kansas. On a percentage basis, about 80 per cent of wildcat wells were failures. In western Kansas only 20 per cent found either oil or gas. The failures were about equally distributed among the major

Jan 1, 1943

By W. A. Ver Wiebe

Under the impetus of new demands caused by the war, the oil and gas industries of Kansas established new records during the year 1942. In all, 1513 test wells were drilled, which is somewhat of a drop from the figure of 2113 for 1941. The 1513 tests yielded 800 new oil wells, 85 new gas wells, and 628 dry holes. Thus there was an increase in two categories, the gas wells and the dry holes. Considering that last year only 592 dry holes were completed out of a much larger total, the figure of 628 dry holes causes some concern among local operators. The increase in unsuccessful tests illustrates once more the fact that each year it is becoming harder to find the remaining oil pools. When the figures are broken down, it appears that western Kansas accounted for 1177 tests, of which 689 were oil wells, 33 gas wells, and 455 dry holes. The total potential daily initial production uncovered by the successful wells amounted to 753,178 bbl. of oil and 619,734,000 cu. it. of gas. The figures for new initial production indicate a substantial drop from last year's figure of 1,691,000 bbl., and the figures on gas are slightly higher. In 1941 the new gas as based on a daily potential was 508,000,-000 cu. ft. In eastern Kansas, 336 wells were drilled. Among these in were oil wells, accounting for a daily initial potential production of 16,199 bbl. The new gas wells numbered 52 and added 253,725,000 cu. ft. per day to the gas potential production of the state. The remaining tests, 173 in number, were dry. It is interesting and perhaps significant that about half (630) of the wells drilled in western Kansas were drilled by the independent operators. Among the large companies, the Cities Service Oil Co. drilled 163 wells; the Stanolind Oil and Gas Co., 52; the Skelly Oil Co., 39; the Continental Oil Co., 48; and the Shell Petroleum Co., 21 wells. In eastern Kansas the independent operators drilled 297 out of the total of 336 wells. Among the major oil companies the Cities Service Oil Co. drilled 19; the Phillips Petroleum Co. 7; and the Sinclair-Prairie Oil Co., 6 wells. The figures based on relative percentages of dry holes to successful oil or gas wells are revealing. In western Kansas almost one half of all wells drilled by the independent operators were dry holes. The major oil companies drilled approximately 547 wells in western Kansas, of which 379 were successful in finding either oil or gas. It thus appears that the major companies fared better than the independents. In eastern Kansas the major companies drilled 39 wells, of which 29 were successful in finding commercial quantities of oil or of gas. No less than 329 wildcat test holes were put down in western Kansas and 105 in eastern Kansas, or 434 in all, during 1942. Considerably more than half of these were drilled by independent operators; 223 in western and 99 in eastern Kansas. An exploratory hole 56 mile or more from production is regarded as a wildcat well in Kansas. On a percentage basis, about 80 per cent of wildcat wells were failures. In western Kansas only 20 per cent found either oil or gas. The failures were about equally distributed among the major

Jan 1, 1943

By R. A. Wagstaff

SINCE the time of the early Egyptians, the use of copper has been a boon to the life of most of the civilized world. Its use has been varied; in many connections, the art by which it attained its greatest usefulness has been lost. In this paper an endeavor will be made to take into consideration some of the many changes that have occurred during the last 40 years of copper-smelting operations. During that period the copper blast furnace has been almost forced out of existence by new methods of ore concentration-first, gravity concentration, and then flotation. These new methods of concentration introduced many new factors into the metallurgy of copper. The product was wet, it was fine and it was high grade. To overcome all these factors many changes have been necessary throughout the smelting agenda. New equipment has been necessary for transportation, unloading, sampling, bedding and moisturing in all smelting plants, especially the custom smelter. During the early days of "flotation," little was known about filtering or the use of an alkaline circuit; often the concentrate going to the smelter contained 20 to 25 per cent moisture. It is easy to imagine the difficulty arising with a product of this nature when it had to be shoveled by hand labor. To meet these conditions, mechanical unloading and sampling devices were soon developed. In many instances such good progress was made that actual costs for handling this unfavorable product were lower than those formerly incurred on the old product. Today most sampling of copper ores and concentrates is being done by mechanical sampling, pipe or augur sampling, or shovel sampling. Where concentrates are uniform in metal content, a great many of the plants now use pipe or augur sampling. For spotty ores, the old shovel sample with cone and quartering during the final stages is still in use. Where big tonnages are handled, mechanical sampling of concentrates is being done, with satisfactory results. To curtail slow and tedious cutting and mixing procedure, mechanical mixing boxes, splitters and cutters are used to cut down labor costs. MILLING As crude ores become scarcer, the use of milling operations increases. The few crude ores that are still smelted are used as fluxing types. To use these ores finer grinding has been found advantageous. This has made for better bedding and fluxing conditions, which in turn makes for faster smelting, lower fuel consumption and better metal recovery. The degree of fineness is more or less determined by the nature of the product. Most plants have set a standard of through ¾ -in. mesh screen for roaster- reverberatory smelting and through ¾ in. mesh screen for converter fluxes. For some refractory ores; even finer grinding has been found to be advantageous for good reverberatory smelting.

Jan 1, 1944

By J. P. Witherow

The Clapp and Griffiths steel-process may be considered a pneumatic system, similar to the Bessemer, with the difference that the converter is fixed or non-tilting, and that the blast is introduced around the lower section of the converter instead of through its bottom. Mr. Griffiths was engineer-in-chief of the Gilchrist & Thomas basic dephosphorizing process during all the time those gentlemen were experimenting and working up their system, as Mr. G. communicated to me. After separating from these gentlemen, he began developing the present Clapp and Griffiths type of converter. Dr. Clapp, of Nantyglow, Monmouthshire, was a prominent physician in a large iron district. Previous to his association with Mr. Griffiths, he took out some patents on a process of his own for the manufacture of steel, which patents stood in Mr. Griffiths' way; hence the consolidation. Early in the summer of 1883, my attention was called to the experiments of Messrs. Clapp & Griffiths in Great Britain by a friend who had just returned from England. Later in that summer I went to Newport, on the border of Wales, where I met Messrs. Clapp and Griffiths and their friends. After visiting two small converters of their type which were in operation at different works, and spending a few days in the iron-districts of Wales, I went to London, where I met my friend Henry W. Oliver, Jr., who had already heard of the new steel-process. We decided to revisit Wales and examine more fully the process, more especially that Mr. Oliver might have the opportunity of coming practically in contact with the men and die process himself, so that his judgment might not be influenced by my sanguine feelings. On

Jan 1, 1885

By D. H. Gieskieng

THE advent of curved jaw crusher wearing plates made an approach other than segmental layout analysis desirable for prediction of capacities. For some time it had been known that the drawing board capacities of crushers using these plates had to be considerably modified by complicated experience factors to achieve agreement with results. Because these apparent capacities could be readily increased severalfold by minor crushing chamber shape changes, it was necessary that the utmost precaution be taken in predicting capacities of jaw plates modified for nonchoking, special wear characteristics, or any other reason. To this end the laboratory and field tests outlined by the author in a previous paper1 were made on Blake-type jaw crushers. The results of these tests were summarized in a simple first degree equation applicable to crushers using either straight or curved jaw plates. This equation first outlines the maximum capacity potential of a given crusher, then reduces this figure in accordance with installation circumstances by means of a realization factor. It was found subsequently that this equation, with the addition of an eccentric throw factor, is applicable to standard types of single-toggle or overhead eccentric jaw crushers as far as maximum capacity potential is concerned. However, these crushers have realization factor curves somewhat different from those outlined for the Blake type. While this paper is concerned principally with standard type single-toggle crusher capacities, the evaluation of data obtained with these machines is simplified by comparative reduction to the 10 x 7 in. Blake-type equivalents upon which the summary of the preceding paper was made. Convertibility of data from one type of crusher to the other also tends towards confirmation of both. The agreement of these data is sufficient to be considered complimentary. Consequently the feed factors, f, previously reported for Blake crushers are slightly adjusted to an average with the single-toggle crusher results. Blake-type equation: C = f.d.w.y.t.n.a.r [I] Single-toggle type equation: C = f.d.w.y.t.n.a.e.r [21 where C is the capacity in short tons per hour through the crusher, f is a feed factor, dependent upon the presence of fines in the feed, and the surface character of the jaw plates used. Values of f : Smooth Plates Corrugated Plates With normal fines 0.0000414 0.0000319 Fines scalped out 0.0000368 0.0000252 Large pieces only . 0.0000312 0.0000215 d is the apparent density of the broken product in pounds per cubic foot. (If the true specific gravity of the feed is known, 40 pct voids may be assumed and d becomes 37.4 times sp gr). w is the width of crushing chamber in inches. y is the openside setting of the crusher, in inches. In the case of corrugated jaw plates it is measured from the tip of one corrugation to the bottom of the valley opposite. t is the length of jaw stroke in inches at the bottom of the crushing chamber. It is the difference between open and close-side settings. n is rpm, or crushing cycles per minute, a is the nip-angle factor. It is unity for 26" and 3 pct greater for each less nip-angle degree. A nip-angle of 20" has an a value of 1.18, and an angle of 30" has an a value of 0.88, see Fig. 1. r is the realization factor. It is unity for perfectly uniform choke feeding and usually less for actual operating conditions according to the method of feeding used and the probabilities of hang-ups involving the size of feed and crusher opening. Approximate values are given by the curves in Fig. 2. These values are further reduced by intermittent feeding, e is the throw or diameter of gyration of the single-toggle crusher eccentric in inches. As evident in Fig. 1A, variation of feed size will generally have little effect on nip-angle if both jaw plates have flat areas. Jaw plates having continuous curvature, as in Fig. 1B will have different nip-angles, depending upon the size of feed. For test work as described in this paper this effect was accounted. For general compilation of capacities for average feeds it is suggested that the nip-angle be taken at the various settings computed, at an arbitrary level, such as is indicated in Fig. 1C. Data Evaluation To bring the Blake and single-toggle type crusher capacity test results to common terms for evaluation, all data are converted to terms of 10 x 7 in. Blake-type performance at conditions of 100 lb per cu ft, 10 in. chamber width, 250 rpm, 0.65 in. stroke, 3-in. openside setting, and 18° nip-angle. (The nip-angle of the 10x7 in. Blake is 18° at 3-in. setting.) The single-toggle crusher performances are also divided by the eccentric throw to bring this effect to unity. As outlined,' laboratory and field tests made on Blake-type crushers ranging from 10 x 7 in. to 60 x 48 in. were summarized along the foregoing conditions of speed, stroke, etc. This resulted in groups of data which correspond to feeds with fines, feeds

Jan 1, 1952

By C. E. Shoenfelt

The year 1939 witnessed the rapid development of several of the more important Rocky Mountain oil and gas areas and the discovery of new oil and gas fields. As a further result of an active year, many oil fields had their productive limits greatly extended or responded to deeper drilling with oil production in lower horizons. In Colorado there was a substantial increase in refinery capacity, with three new units constructed. Its contribution to the crude-oil supply was an important extension of the producing area of a Western Slope field and a deeper oil-producing horizon in an old field east of the Front Range. Occurrences of gas were reported in two wells in northwestern Colorado, but severe winter weather prevented tests and the value of these discoveries cannot be determined at this time. Montana's northern fields were extended and a number of record wells were completed. The North Cut Bank area gives promise of wide expansion in 1940. The gas-producing area of Wyoming's Elk Basin field was extended into Montana on the north plunge of the anticline. The most important developments in Wyoming oil fields in 1939 were extensions to the producing area of Lance Creek and the discovery of a deeper pay in the Tensleep formation at Wertz dome. A new gas field at Horn Valley in the south central part of the state was the only new field discovered, but wildcatting was at low ebb in Wyoming in 1939. Colorado In Colorado, the year 1939 saw the completion of several interesting tests, but largely with negative results. Oil was discovered, however, in a deeper sand in the old Fort Collins field and the productive area of the Wilson Creek field was extended. Gas had been noted in two Western Slope wells, at Yellowjacket-Buford and at Trull, but their volumes had not been determined at the end of the year. Of principal interest, however, were the failures, descriptions of which will be given presently. One of these established a new depth record for Colorado.

Jan 1, 1940

By C. E. Shoenfelt

The year 1939 witnessed the rapid development of several of the more important Rocky Mountain oil and gas areas and the discovery of new oil and gas fields. As a further result of an active year, many oil fields had their productive limits greatly extended or responded to deeper drilling with oil production in lower horizons. In Colorado there was a substantial increase in refinery capacity, with three new units constructed. Its contribution to the crude-oil supply was an important extension of the producing area of a Western Slope field and a deeper oil-producing horizon in an old field east of the Front Range. Occurrences of gas were reported in two wells in northwestern Colorado, but severe winter weather prevented tests and the value of these discoveries cannot be determined at this time. Montana's northern fields were extended and a number of record wells were completed. The North Cut Bank area gives promise of wide expansion in 1940. The gas-producing area of Wyoming's Elk Basin field was extended into Montana on the north plunge of the anticline. The most important developments in Wyoming oil fields in 1939 were extensions to the producing area of Lance Creek and the discovery of a deeper pay in the Tensleep formation at Wertz dome. A new gas field at Horn Valley in the south central part of the state was the only new field discovered, but wildcatting was at low ebb in Wyoming in 1939. Colorado In Colorado, the year 1939 saw the completion of several interesting tests, but largely with negative results. Oil was discovered, however, in a deeper sand in the old Fort Collins field and the productive area of the Wilson Creek field was extended. Gas had been noted in two Western Slope wells, at Yellowjacket-Buford and at Trull, but their volumes had not been determined at the end of the year. Of principal interest, however, were the failures, descriptions of which will be given presently. One of these established a new depth record for Colorado.

Jan 1, 1940

The industrial might of the Bowen Basin is primarily the result of Utah Development Co.'s work- which has opened up the Blackwater, Goonyella, Peak Downs, and Saraji mines; built the Hay Point port; and is now developing the Norwich Park mine.

Jan 1, 1977

By Franz Fohr

On July 27, 1919, there passed away a simple, unassuming gentle-man, who, throughout his life, allowed his intense modesty to keep him-self in the background and during his later years effaced himself so thoroughly that but few of his acquaintances knew aught of him. Yet he was one of our accomplished metallurgists, who did good work in the practice of his profession and lived an upright life. Now that he is no longer with us Franz Fohr cannot plead to be overlooked, and those who fondly remember him will be gratified by his receiving his due. Franz Fohr was born, Sept. 7, 1838, in Mannheim, Germany. Of his ancestry, education, and early career we know scarcely anything. We do not even know just when he came to America, or. what led him hither. The first record of his professional work in this country, found among his papers, shows that from July, 1870, to Jan. 1, 1872, he was superin-tendent of the Newark Smelting & Refining Works, then owned by Ed-ward Balbach & Son. At that time the Balbach works at Newark, established in 1850, and the Selby works at San Francisco, established about 1866, were the only important silver-lead refineries in the United States. Mr. Fohr may have been associated with the Balbachs for some time before he became superintendent of their plant or he may have come from Germany but a short time previously. At all events, it is certain that he was at that time an experienced and accomplished metallurgist. After leaving Newark and going to San Francisco, he soon formed a connection with Thomas H. Selby & Co. Early in 1874-this firm sent him to New York to procure information respecting the manufacture of white lead. His engagement in New York terminated on-Jan. 31, 1875. During 1875, Mr Fohr spent some time at Silver Islet and in the Lake Superior copper region, but of his work there no record remains. In the latter part of 1875, or early in 1876, he associated himself as metallur-gist with the Boston Silver Co., operating at Saint John's, Summit County, in which William L. Candler, of Boston, was the moving spirit. That company was developing its mine in 1875. At the end of that year it "had about 800 tons of ore on hand, about three-fourths of which is dress-ing ore, to be concentrated in its very systematic establishment and to be smelted into pig lead." Evidently Mr. Fohr was engaged for the latter purpose. Henry A. Vezin, erudite and painstaking, was the mechanical engineer for the company. In the fall of 1876, Anton Eilers took his family for the first time so far West as Denver and Mr. Fohr went with them. I do not think that Mr. Eilers had any connection with the Boston Silver Co., save possibly in a consulting capacity, but he visited Saint John's and the enduring friendship among Eilers, Fohr, and Vezin, which terminated only with their deaths, dated from that time.

Jan 12, 1919

By CHARLES HOPPER

In preparing the Steep Rock Lake iron ore body for mining, it was necessary to drain Steep Rock Lake. Using diamond drills, a cut 1800 ft long, 100 ft wide, and maximum depth of 95 ft amounting to 300,000 cu yd of material, was excavated in Greenstone to provide a drainage channel. This was done under the general contractor C. A. Pitts, of Toronto, who in turn employed a diamond drill contractor, Boyles Bros., to do the drilling. The method of excavation was selected be- cause a clean square cut and grade could be maintained in the bottom of the channel. Bootlegged holes would have left blocks of rock in the corners which would have created a situation which would have become progressively worse as the open cut advanced from one side of the ridge to the other.

Jan 1, 1949

By Grover R. Castle

INTRODUCTION "Project Financing" or "Project Loans" have become increasingly popular in recent years, and commercial banks are being asked to consider more and more of such financing. However, the analysis of this type of loan is quite different from the analysis of a loan to a financially sound corporation based on the company's balance sheet. For this reason Chemical Bank did a study of project loans in an attempt to be more sophisticated in our approach to them. As part of this study, we examined 29 project financings for which information was available. In this article I shall describe project loans and set forth the guidelines we developed, as an aid to credit officers who might have occasion to analyse this type of financing. DEFINITION OF "PROJECT FINANCING" OR "PROJECT LOAN" The terms "project financing" and "project loan" commonly describe the various methods that banks and institutional lenders use to finance the construction of new projects on a basis whereby payout is anticipated from the revenue stream generated by the project. A project financing often involves a loan to a new entity formed specifically to own the project. The analysis of a project loan proposal is quite different from the analysis of other term-loan proposals since it involves a credit decision based on the review of a projection or forecast rather than of historical earnings and/or it involves the reliance on contractual obligations of third parties. Lenders are asked to assume the added risks associated with project loans because: 1. Project financing may permit a company to obtain additional leverage. It is possible for companies to arrange financing on a project basis that could not be arranged as a direct borrowing. For example, a company may not be permitted to borrow more money directly, due to a limitation in a bond indenture. However, a project financing can sometimes be negotiated on a basis not prohibited by the indenture. 2. Often the sponsors of, or the stockholders in, the project are seeking an off-balance-sheet financing. For example, 11 of the 29 projects in our study were arranged on an off-balance-sheet basis and one showed on the balance sheet as a deferred income item. An off-balance-sheet financing, for the purpose of this article, is a financing which does not show as a direct liability on the balance sheet of the sponsors of or stockholders in a project. 3. Projects are often located in a foreign country. The financing is arranged so that the lenders assume the political risk on the loan because many companies rightly believe that this arrangement affords a degree of insulation from political risk not otherwise obtainable. 4. Many projects are jointly owned by several sponsors. This form of financing lends itself well to a situation where a new entity is formed to own a project and do the borrowing. Project loans can be used to finance a variety of activities including development of iron-ore deposits and associated pelletizing plants; development of coal reserves; construction of pipelines, alumina plants, fertilizer plants and refineries; etc. The specific areas of analysis can be quite different, depending upon the type of project being financed. It is important, therefore, to classify the proposal according to the type of project, and also by the nature of the financing - nonrecourse financing, financing covered by a guarantee of completion and financing supported by an undertaking lasting for the life of the financing. I will discuss each of these types in more detail later, but first, I should like to make some

Jan 1, 1985

By John V. Beall

One Sunday night last month the phone rang and it was George Schenck from Penn State. How would we like to see a big scrap operation, he wanted to know. A few days later we were on the Connecticut turnpike headed for New Haven to visit a large scrap operation, M. Schiavone and Sons. George had a large clam basket in the back which he explained was for collecting trophies. The car shredder, he said, turns out some fancy metal shapes. In fact, they have gained a certain acceptance as objets d’art among George's friends and relatives. He thinks there may be a small, but possibly lucrative secondary market for shredded cars in the art world if the idea is imaginatively promoted. On the way to New Haven we received a briefing on the scrap industry. The scrap business grew from humble beginnings. Mostly it was started by a few immigrant Jews who collected junk in hand- or horse-drawn carts. The fortunate one might even have had a truck. Before proceeding further, we hasten to point out that the word "junk" is strictly taboo among scrap people, who prefer to refer to their industry as the "secondary metals industry."

Jan 1, 1970

By N. A. D. Parlee, N. M. El Tayeb

Fe-V alloys with small percentages of vanadium show no deviations from Sieverts' Law up to P~, = 1 atm in the 1600º to 1750ºC region. At somewhat under 8 pct V and up to at least 20pct V, at 1604" and 1661 °C, nitrogen absorption follows Sieverts' Law at low Pn2 values, but deviates from this law beyond critical values of pn2, due to formation of a nitrzde phase of approximately VN composition. The behavior below these solubility limits can be described at all temperatures by the equations: RAO and parlee1 suggested that the nitrogen absorption curve for liquid iron alloys takes the general form shown in Fig. 1 when an alloy nitride precipitate is formed. They showed that the precipitation of 6 titanium nitride from liquid Fe-Ti alloys follows this general scheme and dealt with the general theory involved. Recently, Evans and Pehlke2 reported their research on the precipitation of aluminum nitride from liquid Fe-A1 alloys. Fountain and Chipman's recent paper3 on the precipitation of boron nitride from solid solution contains a fine example of the analogous behavior which they have been studying in the solid state. Researches on the absorption of nitrogen by liquid Fe-V alloys have been described by various authors.1,4-7 Most of this work has been confined to fairly low vanadium concentrations and rather high temperatures because of difficulties variously described as, formation of surface scums, bridging, and so forth. This behavior and the rough thermo- dynamic calculations made by chipman,8 over eleven years ago, indicated that excessively high vanadium concentrations should not be required for vanadium nitride precipitation. It seemed desirable to look for and study this precipitation in order to fill out the thermodynamically interesting nitrogen absorption data on these alloys. EXPERIMENTAL METHOD The general method used was essentially the same as employed by Rao and parlee,1 in which a Sieverts type of apparatus was used and the precipitation of the nitride detected by the "break-point" in the Sieverts' Law line, and by the visual observation of the formation of the new phase on the surface of the melt. There were, however, a few differences in apparatus and technique as described below. The oil manometer used by Rao and parlee' to measure low partial pressures of nitrogen was not employed. The present authors sought to avoid as much as possible the exposure of the liquid alloy to low total pressures of gas during the 6 to 10 hr long runs because of the heavy iron evaporation-loss errors involved. This was achieved, partly by keeping evacuation times to a minimum with fast pumping but largely by the use of two burettes, one for argon and one for nitrogen, and using them to equilibrate the alloy with mixtures of argon and nitrogen rather than nitrogen alone. Each run involved a careful sequence of operations. After melting, de-

Jan 1, 1963

By FREDERICK W. BRADLEY

MINING methods are evolved rather than devised; and the process is slow. The advance in no particular year is phenomenal, but progress is un- questionably being made constantly in several directions: (a) better adaptation to given conditions of various "systems" of mining; (b) better utilization of mechanical equipment ; (c) improvement in working conditions so as to promote the health, safety and efficiency of the workers. During the year 1930 operations were commenced at a number of important new mines. Methods adopted are not new, except in minor detail, but the fitting of methods to conditions is interesting, because, as the engineers presumably started from scratch, they have selected the methods that experience under similar conditions has indicated as being the best.

Jan 1, 1931

K. Baumgarten has returned from active service in France. He reports that he saw C. W. Campbell, formerly with the 2d Engineers on the Chateau Thierry front, and believes that the latter returned to the United States on August 1. He also saw J. J. Croston; G. J. Sielaff, recently transferred to the Gas Service; Thomas M. Smither, survivor of the Tuscania after a 10-mile swim to Ireland. While in Paris he en-deavored to see Prof. Sauveur, but was unsuccessful. F. K. Borrow was given a commission as Lieutenant in the Royal Garrison Artillery in 1914, but had to relinquish it, on account of ill health, in August, 1915. His health has much improved and he hopes to resume active work toward the end of this year. Davis, A. W:, see British Columbia Engineers, below. Alfred Fox, Jr., enlisted in the Public Schools Brigade, Royal Fusiliers, in September, 1914; was gazetted Lieutenant in the Royal Field Artillery in December, 1914, promoted to Captain in November, 1915, and Adjutant to 78th Brigade, Royal Field Artillery, in January, 1916. He was appointed Staff Captain of the 12th Divisional Artillery in November, 1917. He has served continuously in France since July 1, 1915. He was awarded the Military Cross in January, 1917, and four times mentioned in despatches. E. Fraser-Campbell writes that he joined the London University 0. T. C. in January, 1918, for five weeks; enlisted with the Argyll and Sutherland Highlanders in February, 1918, and attended a training course for officer cadets at Chatham for six weeks. He was commissioned 2d Lieutenant, Royal Engineers, in April, 1918. After two months on home training at Chatham, he landed in France on June 23, 1918, posted to 180th Tunnelling Co., R. E., and is now with his unit up on the line.

Jan 10, 1918

By Carel Robinson

THE little coal mine at Otsego, in the Winding Gulf field of southern West Virginia was dying. In the history of coal mining thousands of mines have been successful at first, but usually a change occurred and profits ceased. Often be change was so gradual and extended over such a length of time that the fundamental causes did not stand out in sharp relief and their significance was not realized. Studies often reveal that the cause for failure was in the arteries that connect the producing places with the mine entrance. Profits continued so long as the working places were close to the tipple and while the thrill of newness aid ease of access resulted in effective supervision from day to day. The air- way and haulageway, the wire line and manway, may have been sufficient when the distance from the entrance was a few hundred feet, but were inadequate when this was extended for thousands of feet.

Jan 1, 1937