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By W. H. Schacht

IN THE Lake Superior District, the air indoors must be heated continuously during eight months of the year and occasionally during the remaining months. Incident with mining in this district, therefore, there is need for heating many of the buildings connected with these operations. In addition to the mine buildings, that is, shops, engine, houses, offices, change houses, etc., such public buildings as schools, library, and theater, when close to the mines, are often supplied from the mine heating mains. At the Copper Range Company's mines, Champion, Trimountain and Baltic, the heating surface thus supplied from the mine mains is over 50,000 sq. ft. (4645 sq. m.) which requires a steam consumption, at times, of 18,000 lb. (8165 kg.) per hour, or the equivalent of a rate of over 50 tons of coal per day (were live steam used). This figure is based on a consumption of 1/3 lb. per square foot of heating surface during the coldest weather, and provided the system is not wasting steam by blowing it to the atmosphere or into the return line on account of leaky traps, which so often is the case. Under the latter conditions, steam consumptions of three to four times the above rate are not uncommon. This shows that the cost of heating is of enough importance to be given serious consideration, especially at this time of rising prices of fuel. The power and heating value of exhaust steam are appreciated by most engineers, and its application for such purposes is general. At our stamp mills, the exhaust from the stamps is used to operate low-pressure turbines, thus reducing the former water rate per horsepower developed by more than 50 per cent.

Jan 8, 1920

By John Sasadi, Karl Heinz Zepter, Leonard Sugin, Roger L. Hulette

Mt. Newman Mining Co. is now completing an expansion program, begun even before initial construction was complete, which will result in the ability to ship up to 35 million tpy of iron ore by early 1973. Located in the Pilbara region of Western Australia, the mine at Mt. Whaleback is about 700 road miles north of Perth and 265 railroad miles south of the port facilities at Port Hedland. Development of the tertiary crushing and screening facilities best illustrates the orderly, but rapid, sequence through which the capacity of the port loading terminal has been expanded. When the present program is completed, crushing and shiploading capability will reach - - 35 million tpy. Operations commenced in 1969 with 3 crusher lines in service; and despite the 5-million annual ton rating, 6.46 million tons of ore were shipped during the first full year of operation. With continuing increase in ore sales, expansion to an annual capacity of 12 million tons was authorized, and installation of two more crusher lines was begun. As a part of this program, provision for installation of a sixth crusher at some future date was included in the planning; but before construction was completed, new ore sales contracts demanded further expansion to an annual rate of 20 million tons, and the sixth crusher line was authorized. The distributing and collecting conveyors had been designed for extension in length and increase in capacity, therefore, conveyor service was provided for the additional crushers with additional belting and hardware only.

Jan 6, 1972

By Linn Bradley, W. W. Strong, H. D. Egbert

A hot-dry method of cleaning the gas from blast furnaces has been shown1 to conserve the sensible heat energy of the gas, and in general it thus permits of a higher flame temperature. The electrical method of cleaning gases removes from 98 to 99 per cent. of the suspended matter in one operation when operating properly, thus making possible the use of a very clean gas for burning in the stoves. The use of such clean gas thus makes feasible a different type of hot-blast stove construction from that being used at present. It therefore seems advisable to construct the stoves from the viewpoint of getting the maximum amount of heat energy into the products of combustion. By preheating the air added to the top gas and obtaining a better mixture of the air and top gas, less excess air will be required and a higher flame temperature obtained from the combustion of the top gas. The interior of the stove should be provided with a kind of brick that will withstand a high flame temperature, will conduct the heat energy along certain directions, insulate the flow of heat along other directions and at the same time store heat energy so as to make the flow of such energy more uniform. It is quite likely that these results can be best obtained by using several kinds of bricks: one type which is a good insulator of heat energy to be used for lining the stove and for making partitions through the stove to restrain the flow of heat; another type of brick or material with high refractory qualities; and a third type which will be a good conductor of heat energy. The surface of the stove exposed to the atmosphere should be a minimum in comparison to the mass of checkerwork which it is possible to obtain, due regard being paid to other conditions. With clean and hot furnace top gas it will be advisable to consider a rearrangement of the checker work in the stoves. One season for the present size and shape of checker openings is to provide facility for

Jan 1, 1917

By G. Van Esbroeck

THE copper mines of the Katanga region in the Belgian Congo lie along the same mineralized belt as those of Northern Rhodesia. There are two distinct types of deposits in that belt, the dolomitic and the quartzitic. In the dolomitic type the metallic minerals are found in a dolomitic limestone country rock. Through oxidation and enrichment, large deposits of high-grade oxidized copper ores were formed, some of which are being worked by the Union Miniere du Haut Katanga. Such deposits are all in Katanga. The quartzitic deposits are found in Katanga and Northern Rhodesia. Here the primary mineralization occurred in sandstones and quartzites, in horizons stratigraphically lower than the dolomites. These rocks are not favorable to secondary enrichment and the oxidized zone is poorer than the sulphide zone, which alone contains the ore. There are also in Katanga a few ore-bearing veins. One of them is being worked in the Prince Leopold mine at Kipushi.

Jan 1, 1939

By F. Clerf

BLAST-FURNACE practice in France is determined more or less by the character of the ores used. Some French ores are siliceous and others are calcareous, therefore by proper burdening a self-fluxing mix can be used. This is not always clone, as, for instance, at the Caen furnaces of the Société Métallurgique de Normandie, where the Soumont ore of Normandy is used, which is a carbonate. This ore is crushed and calcined at the mines, yielding a product that is porous and well sized for blast-furnace consumption. The lines of the Caen furnaces are given in Fig. 1. Originally these furnaces had 16 tuyeres; six are plucked and these tuyeres are set in the lower part of the bosh. Operating data on these furnaces are given in Table 1.

Jan 1, 1937

By Blamey Stevens

(San Francisco Meeting, October, 1911.) IN this paper, which is a logical extension of my paper, The Laws of Intrusion, 1 the various pressures of emanation and their mechanical causes and effects on the large scale of nature are determined, .and a classification of emanations is deduced therefrom. The Subterranean Sea. The subterranean sea is here defined as the intercommunicating water contained in the trains of pores and fissures of the rocks down to great depths. Whether the actual amount of water constituting this subterranean sea be large or small, does not enter into the present argument, since the static pressure of this water at any particular depth is not a function of the quantity : it involves only the depth and the density of the water. Densities. The total pressure at depths down to 10 or 15 miles is made up of the rock-stresses investigated in my previous papers, and the pressure of the subterranean sea. The latter component must evidently be equal to the weight of a solid column of the overlying water of unit sectional area. As water expands with heat, it should really be necessary to sum the density at every level. A knowledge of the densities of water under a variety of conditions is therefore needed, but does not seem ever to have been ascertained for such combined pressures and temperatures as we have to consider. The specific gravity of water at 28° C. for various pressures up to 400 atmospheres, has been determined by Barus,2 who

Apr 1, 1912

By W. H. Emmons

INTRODUCTION MINERAL deposits that have formed by the various geologic processes, when exposed to air and water at or near the surface of the earth, break down and form new compounds that are stable under surface conditions. Mechanical disintegration of the ores proceeds along with chemical alteration which generally is attended by oxidation, carbonation and hydration. Essentially all minerals are affected-silicates, carbonates, native metals, sulphides, etc. Where iron sulphides are present, oxidation yields sulphuric acid, and in the presence of oxygen and iron, ferric sulphate, a powerful solvent, is formed. Above the water level, in the vadose or shallow zone, both air and water are present. Below the water level air is excluded and that which is carried down with water is removed from the solution by reactions with reducing materials. Above the water level, solution is the pre-dominating process; below the water level, precipitation generally is equally important. In some deposits, particularly above the hater level, valueless materials are removed from the ore, leaving certain metals in a more highly concentrated state. This type of alteration, which has been termed negative enrichment, is common in ores of iron, aluminum, manganese and certain other metals. Some gold deposits, particularly those in which the environment is unfavorable for solution of gold, have been enriched near the surface by removal of material other than gold. Certain metals are readily dissolved in an oxidizing acid environment. These include copper, silver and, under certain conditions, gold. In the presence of iron sulphides, deposits of these metals are likely to be leached above the water level. The metals are carried downward to depths where air is excluded, and where they may be redeposited, generally below the water level. Such enrichment by addition of metals has been termed positive enrichment.

Jan 1, 1933

By Horace Tharp Mann

Jan 1, 1926

By L. L. McDaniel

During the past few years a nuinber of improvements in smelting and power equipment have been made at the Douglas smelter of the Phelps Dodge Corporation at Douglas, Ariz. In the summer of 1935 work was started on the first unit of a new reverberatory waste-heat boiler plant which ultimately was to furnish steam for a modern high-pressure power pIant. A second reverberatory waste-heat boiler unit

Jan 1, 1944

By Donald F. Irwin

Amid the violent economic changes of recent years that have affected Canadian gold-mining operations so deeply, the discovery and early developments of Kirkland Lake might easily be overlooked. There was more than one "false dawn" for the district before developments finally established the fact of a superb mineralized zone extending through the present operating properties. Never far from the railway, Kirkland Lake has had the benefit of direct rail service for many years. The pioneer discovery on which the first mill and cyanide plant was erected was the "Tough-Oakes," this property being on what is now the eastern end of the producing area; some time later, the "Lake Shore" was discovered at the present center of the district, and a small plant was built upon it also. Both of these early treatment plants were of pre-war design. Progress in gold metallurgy has caused a gradual change in cyanide practice since the early days at Kirkland Lake, which may be observed in the various plants now operating there. From the beginning, it was recognized that Kirkland Lake ores were more responsive to cyanidation than to alternative recovery methods, and that their mineralization contained gold in very finely divided form. Although sulfides and tellurides are present, the quantity is small, being in the order of 1 or 2 per cent by weight, so that gravity concentration is undesirable, since gold is not confined to the sulfides. Some complication is offered by the presence of tellurides, which have caused lengthy controversy over their importance in recovery methods, but which are now generally regarded as less harmful in the light of increasingly high recoveries being obtained. Nevertheless, finely divided gold intimately associated with sulfides in the presence of tellurides; and occurring in the hard Kirkland Lake porphyry ore, substantially free from natural slime-forming constituents, indicates fine grinding. This has been the universal practice although the degree of grinding has varied a little among the different mills and is considerably finer now than formerly. The natural condition as outlined caused the establishment of fine grinding at an early stage in the development of Kirkland Lake, during the period of valuation of gold at, $20.67 per ounce. With the arrival

Jan 1, 1935

By B. K. Miller, George E. Moore

THE Missouri fire clays are here divided into plastic and semiplastic clays occurring as widespread bedded deposits in east central Missouri and flint and diaspore clays occurring as isolated "sink-hole" deposits in the north central Ozark region. Visual inspection was the first method used in clay prospecting. Thin overburden, hard sandstone "rimrocks," and the occurrence of diaspore float made this method particularly applicable in the flint and diaspore fields. The first drilling tool used was a hand auger. One man can drill 25 to 50 ft. per day at a cost of about 35 cents per foot. Holes can be drilled to a depth of 150 feet. Spud drills are often used where the over burden is hard. This drill uses a slotted earth socket bit. A two-man crew can drill about 100 ft. per day at a cost of about 35 cents per foot. Mechanically powered auger drills have been used extensively in wildcat drilling in the past few years. This type of drill furnishes a continuous set of cuttings. The practical depth limit with this drill is 50 to 60 ft. Two men can drill 300 ft. per day at a cost of about 20 cents per foot. Core drilling is used mainly to prove a known clay deposit. A two-man crew with a No. 22 Sullivan drill can drill about 30 to 40 ft. per day in soft clay, at a cost of about $1.25 per foot.

Jan 1, 1947

By O. R. Wagner, R. O. Leach

Immiscible displacement tests were performed in a consolidated sandstone core over the interfacial tension range from less thdn 0.01 to 5 dynes/cm to better define how interfacial tension (IFTJ reduction can lead to increased oil recovery. Data obtained were displacement efficiency at breakthbrough vs IFT for both drainage and imbibition conditions. These tests simulate water flooding under oil-wet and water-wet conditions, respectively. Results of the study have shown that displacement efficiency under both oil-wet and water-wet conditions can be markedly improved by a sufficient reduction in IFT. In the particular porous media used and for the low pressure gradients employed, the IFT must be reduced to a value less than about 0.07 dynes/cm to achieve increased recovery at the time of breakthrough of the injected phase. Below 0.07 dynes /cm, further small reductions in IFT result in large increases in displacement efficiency. Observed increases in recovery were obtained at pressure gradients which are well below those which can exist in the interwell area of a reservoir under water flood. The effect of pressure gradient on recovery is discussed. INTRODUCTION A residual oil saturation remains in rock which has been water flooded because, under usual reservoir conditions, the driving force which can be generated is inadequate to expel oil trapped by capillary forces. Since these capillary forces can be reduced by reducing the IFT a frequently studied method of increasing oil recovery has been the use of surfactants to reduce the water-oil interfacial tension. Mungan l observed improved recovery in both water-wet and oil-wet systems at 1.1 dyne /cm IFT, finding that the amount of improvement was greater in oil-wet systems. Moore and Blum,2 working with visual flow cell micro-models, con- cluded that recovery cannot be improved in water-wet systems by injecting surfactant solutions. They calculated that, for a pressure gadient of 1 psi/ft in their model, the IFT must be reduced to 0.03 dynes/cm to release oil trapped under water-wet conditions. Berkeley et al.3 indicated that, at representative field flooding rates, the IFT must be reduced to 0.001 dyne/cm to improve recovery, Thus, there is a wide variation of opinion about the IFT levels needed to improve recovery under field conditions. These previous investigators all have used as their experimental method the addition of surfactants to the injected water. The use of surfactant solutions to reduce IFT creates two experimental problems: (1) the loss of surfactant through adsorption on reservoir rock can obscure the true IFT value which exists at the displacement front, and (2) at very low values of IFT emulsifica-tion of oil and water commonly occurs. It is difficult, therefore, to determine whether the increased recovery is caused by IFT reduction as such, or is instead caused by emulsification. Also the properties of the available surfactants limit the IFT range which can be studied. In the present study the purpose is to better define how interfacial tension reduction can lead to increased oil recovery. A matter of great interest is the amount of recovery improvement potentially achievable in this way. The study was made using very low pressure gradients which was well within the range achievable by water flooding in the interwell region of petroleum reservoirs. A unique experimental approach was chosen to avoid adsorption and emulsification problems, and to allow convenient control of IFT. The fluid phases used were the equilibrium vapor and liquid phases of the methane-n-pentane system. The interfacial tension level was varied by changing the equilibrium pressure of the methane-pentane system over the range from 1,200 psia to near the critical pressure (2,420 psia). All tests were performed at a controlled temperature of 100F. The IFT-vs-pressure relationship for the methane-pentane system was based on the data of Stegemeier and Hough,6 and on new data obtained in this study. With this experimental approach it has been possible to study displacement at lower values of IFT than have been previously investigated.

Jan 1, 1967

By Persifor Frazer

For various reasons I have not specified the locality where the research indicated in the following pages was undertaken. It will suffice to say that it was on the grounds of a villa once remote from, but now completely surrounded by, its neighboring city, and in close proximity to an industrial establishment of great extent and importance manufacturing many kinds of steel articles and employing upwards of thirty chimney-stacks for power and process work. The problem was to discover the cause or causes of the mortality to trees and plants on the place, and to trace these causes to their origin. Before undertaking this experimental work, the bibliography accompanying this paper was compiled and studied. It appears from an examination of the careful scientific work performed by the ablest French, German, and English chemists during the last 25 years that they are unanimous in assigning the principal—in fact, the overwhelmingly predominant— cause of the destruction of vegetation to sulphur oxides, resulting either from direct oxidation of sulphur in oil of vitriol works, etc., or from the oxidation of the sulphur from the minerals associated with commercial coal. Schroder and Schertel showed in 1884 that the sulphates deposited upon the leaves are not injurious to the plants; and Freytag proved that free sulphuric acid could not be found

Jan 1, 1908

By D. W. Levinson, L. F. Mondolfo, N. A. Gjostein

MANY investigations are reported in the literature on the age hardening of Al-Mg-Zn alloys but most of them are concerned mainly with mechanical property changes. The present investigation was started to determine the structural changes in an AlMgZn alloy. The alloy composition was chosen in the existing phase diagram" so as to lie on the quasi-binary section Al-(AlZn)Mg Actually, it was found that the diagram as published was inexact at the lower temperatures and that the phase in equilibrium with aluminum at the lower temperatures is not the ternary compound. Technique The alloy used for the investigation was prepared from high purity materials and the resulting composition as determined by chemical and spectro-graphic analysis was: Zn, 6.17 pct; Mg, 2.13 pct; CU, 0.03 pct; Si, 0.009 pct; Fe, 0.005 pct; and the remainder, aluminum. An ingot -in. thick was cast, homogenized, hot and cold-rolled to strip 0.064-in. thick for dilato-metric and powder work, and to foil 0.005-in. thick for single crystal work. Solution treatment temperature for all specimens was 475°±5°C for periods of at least 1 hr, either in air furnaces or lead baths. Aging was done in oil or Pb-Bi baths controlled to within ±3°C. The aging was investigated at the following temperatures: room (30°), 130°, ZOO0, 260°, and 300°C. For the dilatometric study, the length changes were measured continuously, at temperature, using strips of alloy 10 in. long, shaped as channels to eliminate undesirable deflection due to bending. To compensate for thermal expansion and contraction due to the variations in the temperature of the aging baths, the dilatometers were built of the same alloy as the one being tested, with the same shape and size, but with material fully annealed. Gages on which 0.0005 in. could be read and 0.0001 in. estimated were used to measure the dilation. Length changes were also measured at room temperature. Strips approximately 10 in. long were solution-treated, quenched, and measured in a supermicrome-ter in which 0.0001 in. could be read and 0.00001 in. estimated. The specimens were immediately aged for a given time, remeasured, and then the cycle was repeated, including the solution treatment. The error of measurement with this technique was somewhat larger, but the results confirmed those obtained by continuous measurements. The sheet used for the dilatometric work was checked to determine grain orientation. Both X-rays and etching methods revealed a rather coarse grain size but only a negligible amount of preferred orientation. Thus, volume changes calculated from length changes are not invalidated by preferential orientation effects. Pieces of the sheet used for the dilatometric work were also used for the metal -lographic work. Filings for the powder X-ray study were produced from a homogenized piece of sheet. These filings were magnetically purged of iron, screened to 200 mesh, sealed in a Pyrex tube containing an argon atmosphere, and solution-treated. When quenching, the glass tube was broken, so that the powder dropped directly into cold water. After drying with alcohol, the powder was sealed into capillary tubes containing an argon atmosphere and then aged for the required times. In spite of all these precautions the three strongest lines of a( Al2o) appeared in all patterns, and were used as internal standards. By the use of these standards, accurate corrections for film shrinkage were obtained. For the back reflection patterns, annealed nickel powder was mixed with the specimen to act as internal standard. A preliminary investigation was made in small (57.3 mm diam) powder cameras. From these patterns the changes which took place in the solid-

Jan 1, 1957

By W. R. Crane

The effect of mining in the red-ore mines of the Birmingham district has been observed for some time, but, except in a few localities, little difficulty has been experienced from disturbance of cover. Cave-ins near the outcrop and fracturing of the surface at greater distances are the most pronounced manifestations of disturbance, while limited areas at points distant from the outcrop and under greater depth of cover have actually subsided. were it not that the orebed is overlain by one or more water-bearing formations, the fracturing or settlement of the surface would not be serious; but because of these formations, fracturing of the top rock may in itself be of sufficient importance to warrant the adoption of protective measures. Further, the collapse of pillars over a wide area may develop squeezes that, if not controlled, may jeopardize the integrity of the mines and necessitate a change in development, from slopes to vertical shafts, at a much earlier period than is now contemplated. Drainsge in these mines has been discussed in papers on mining practice,' but the fact that water, varying from 0.16 to 3.46 and averaging 1.43 times the amount of ore mined, has to be pumped from the mines daily, indicates the importance of the problem and the advisability of making a thorough investigation of the source of mine water, its mode of entry into the mines, its effect upon mining conditions, and consideration of means of improving the conditions.

Jan 1, 1927

By Dr. O’Neil Thomas J., Donald W. Gentry

"There is nothing so disastrous as a rational investment policy in an irrational world. " John Maynard Keynes INTRODUCTION The principles of time value of money concepts were discussed and illustrated in Chapter 3. The importance of time value of money and the role it plays in the discipline of engineering economy have been well established. Chapter 9 further illustrates that project evaluation criteria that fail to consider this aspect are seriously deficient in providing appropriate capital budgeting decisions. Obviously future project receipts and expenditures must be discounted to permit valid comparisons with current cash flows. Although the concept of discounting is widely accepted, the selection of the appropriate discount rate has been the source of considerable debate and much disagreement. This chapter, then, provides an overview of the theoretical and practical considerations for determining or calculating the appropriate rate for discounting, the corporate cost of capital. Note specifically that the assumption of constant business risk among the various investment alternatives is maintained throughout this chapter. THE INTUITIVE APPROACH The fact that interest exists suggests that all money has a cost associated with its use. The cost of this money may be the result of either explicit or implicit charges or some combination of the two. Any time an individual or a firm consumes less than the total earnings generated in a given time period that individual or corporation has either consciously or unconsciously decided to "invest" these excess funds in some type of activity. For instance, the individual or corporation may decide to invest the excess funds in tangible property, place the funds in a money market account, or simply keep these funds in cash. In any case, these funds have been invested in some type of activity which promises the investor some return on the invested capital. Remembering that the firm's primary objective should be the maximization of shareholder wealth, then intuitively it seems reasonable to suggest that the firm should not invest in any project where the anticipated return does not exceed the cost of funds (capital) committed to the project. Indeed, if the firm always invests in projects having returns in excess of the cost of capital committed to them, then the wealth of the firm (as measured by the price of common stock) should be in-

Jan 1, 1984

By Jack A. Simon, M. E. Hopkins

GENERAL GEOLOGY Coal is defined as a combustible rock that originated in the accumulation and physical and chemical alteration of vegetation. Coal can be ignited and burned like the wood that was man's earliest fuel, but coal gives more heat than the same amount of wood and has many industrial uses. Unlike wood, coal is not generally found on the surface of the ground but is mined from the solid rock of the earth. Before taking up the occurrence, formation, and the unique character of coal in the rock sequence, let us briefly consider the general character of all rocks in the crust of the earth. Relatively little is known about the very earliest history of the earth, although a number of logical theories have been developed. Manned exploration of the moon and the rocks returned to earth continue to provide some answers to questions concerning the earth's origin and history. The period of earth history with which we concern ourselves here begins after great areas of water had evolved on earth and substantial land areas of once molten (igneous) rock existed. Weathering and other processes that attacked the surface of the rocks reduced them to small particles. Water provided by rainfall transported this material, ultimately, to large bodies of water where it was deposited. Thus was initiated the geologic sequence of sedimentary rocks that lie above the once molten igneous rocks. The crust and upper mantle of the earth are made up of several large plates along which differential movement (primarily horizontal) takes place. Such movements, although small, are occurring today. These horizontal movements are accompanied by vertical movements causing important changes in the relative position of the continents and oceans. Low-lying coastal swamps with favorable climates are ideal locations for coal accumulation and burial by river-borne sediments, and large areas

Jan 1, 1981

By W. R. Hibbard

Pole figures, torque curves, and coercive force have been determined for the following rolled and annealed permanent magnet alloys: Cunife, Cunico, Silmanal, Vicalloy I, Vicalloy II, and Heusler's Alloy. IN the general category of precipitation-type permanent magnet alloys there is a group of ductile alloys, including Cunife, Cunico, Silmanal, Heusler's Alloy and Vicalloy, which can be extensively rolled and annealed to develop a preferred orientation in the crystals of the matrix material. The rolling and annealing textures of Cunifel and Vicalloy' have been previously investigated qualitatively, but no pole figures are available in the literature. In addition, the role of precipitation in these permanent magnet alloys is still somewhat controversial. It

Jan 1, 1957

By G. C. Gambs

The electric utility industry is the largest customer of the coal industry and consumes nearly 50% of the present coal production in the United States. The byproduct of the burning of coal in utilities is ash in several forms including fly ash, bottom ash and bottom slag. At present, very little of the coal ash produced is being used and must be disposed of as waste. The coal industry should look upon this waste material as a valuable by-product which, if it can be sold for $2 to $4 per ton, will have the net effect of reducing the cost of coal to the utility by 1¢ to 2¢ per million Btu. There are many ways to use coal ash and thus benefit both the coal industry and the electric utility industry by reducing the cost of coal as burned. The solutions to the problems are obvious and all we have to do is apply them. The electric utility industry is the largest customer of the United States coal industry, consuming nearly 50% of present coal production. By 1980, the electric utilities are expected to burn over 500 million tpy of coal or 75% of total coal production. When coal is burned in electric utility plants, ash is produced in one of several forms. These include fly ash, bottom ash and bottom slag. At the present time, approximately 20 million tons of these ashes are produced and must be disposed of by the utilities at a cost of 50¢ to $2 per ton. In 15 years, more than double this quantity will be produced. Only a small quantity of this ash is put to any practical use. Much remains to be done about expanding uses for fly ash and bottom slag. It is well known that fly ash, when used to replace a portion of the cement in a concrete mix, will produce highest quality concrete. The Corps of Engineers and the Bureau of Reclamation have constructed dams and other concrete structures for years with fly ash as a partial replacement for cement. However, many construction firms do not use it. This can become an opportunity for the coal industry to reduce the cost of coal delivered to utilities. Any fly ash, or other ash or slag, which is sold by the utilities, reduces the cost of coal burned by the utility. As much as 1¢ to 2¢ per million Btu could be taken from the fuel cost for each ton of ash sold which otherwise must be disposed of at a cost.

Jan 1, 1967

By Thomas Cox

THIS paper makes no claim to any new idea; it simply reviews the Treasury Department Regulations pertaining to the practical application of depreciation and depletion and other allowances governing taxation of oil and gas properties. Other methods may be existent, but as they may not conform to the legal status they must be discarded. In complying with the present laws governing the, industry with regard to taxation and the allowable deductions therefrom, the following considerations are essential: Depletion, depreciation, amortization, other allowances, and items not deductible. It is definitely understood that depletion is the loss or exhaustion sustained in the continuous operating of an oil and gas property, and that each unit of oil or gas taken out reduces the value of the property until its final exhaustion. Depletion applies only to the natural deposits of oil and gas due to their-removal in the course of exploitation of any property. Depreciation is defined to cover the waste of assets due to exhaustion, wear and tear, and obsolescence of the physical property, and is separate and distinct from depletion; its allowance is that amount which should be set aside for the taxable year in such sums as for the useful life of ,the property will suffice to repay its original cost-or its value as of Mar: 1, 1913, if acquired by the taxpayer before that date-less the salvage value at the end of such useful life. Amortization is allowed for such facilities as were built or acquired on or after Apr. 6, 1917, for the production of articles contributing to the prosecution of the war and, in the case of vessels, those built and acquired after that date. The amount to be extinguished, in general, is the excess of the unextinguished or unrecovered cost of the property over its maximum value under stable .post-war conditions.

Jan 9, 1920