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By J. B. Urnfileb

THE function of gas in the development and production of oil has far reaching consequences that should be emphasized. The technical aspects of the subject have recently had a great deal of attention but less thought has been given to fundamental concepts underlying oil and gas law and the many customs and practices that have grown up in the industry. I shall re- view briefly the advance in knowledge of the subject and attempt to relate these concepts to legislative, judicial and operating problems. Early writers on oil and gas in Pennsylvania noted their close association in oil pools and their contemporaneous decline in output; also, that as gas pressure decreases so does production, that new offset wells reduce the output of existing wells, and even that tubing a well lengthens its flowing life. Expanding gas was deduced as the principal expulsive force. These fundamental observations had been made at least as early as 1880.l They were treated, however, as academic considerations and did not greatly influence law or practice for many years except to instil into all operators an urgent desire to hasten offset drilling to obtain as much of the flush as possible.

Jan 1, 1932

By Edward H. Robie

PONCA CITY proved an ideal selection as a place of meeting for the Petroleum Division this fall. The accommodations at the Conoco Club were just what was required for such a gathering; the committee having the arrangements in charge functioned with the efficiency of veterans and the enthusiasm of neophytes; and the members and guests followed the speakers with close attention, entered the subsequent discussions with gusto, and divulged the "low-down" at private conferences. No one minded the drizzling rain on the first day, which only served to keep up the attendance in the auditorium; the weather then cleared up in time for a group picture before the gathering went their separate ways.

Jan 1, 1932

By Sam Tour

OF the new alloys achieving commercial prominence during the year, an aluminum-silicon magnesium casting alloy, which is similar in many respects to the 4 per cent copper alloy, developed about 1921, which has attained such a wide field of service, may be mentioned. The new alloy, like the old, is a heat-treatable type and develops about the same physical properties. The alloy casts easily and is relatively insensitive to high pouring temperatures. Its ability to produce substantially leak- proof castings is noteworthy. A second casting alloy development is the new Aluminum Co. of America No. 132, "Lo-Ex" piston alloy, a result of nearly eight years of research. The alloy contains about 14 per cent silicon and varying amounts of nickel, copper, and magnesium. It exhibits a low coefficient of expansion and thus permits small piston clearances. Its lower specific gravity is a further advantage.

Jan 1, 1932

By Walter W. Bradley

AT ONE TIME OR ANOTHER and in greater or less amounts, gold has been mined in at least 40 of California's 58 counties. It may not be inappropriate, by way of introduction, to give a brief historical statement relative to her production of the yellow metal. The presence of gold in the gravels of San Gabriel, San Francisquito, and other streams near Los Angeles, was known and they were worked in a small way by the Indians, at least as early as. 1841' and possibly 1820. -On March 2, 1844, Don Manuel Castanares, deputy for California to the Congress of Mexico, reported' to his government that placers near Los Angeles had yielded up to December, 1.843, a total of 2000 oz. of gold dust, most of which had been sent (via Mexico) to tile United States Mint at Philadelphia.

Jan 1, 1932

By AIME AIME

THE two illustrations below, furnished through the courtesy of J. P. Messervey, Deputy Inspector of Mines, Department of Public Works and Mines, Province of Nova Scotia, show a fourth-level stope in the salt mine at Malagash, N. S. Fig. I was taken when the stope was begun, and Fig. 2 shows how it looked two months later, the photographs being taken from the came point. This stope is at a depth of about 300 ft. and is on the MacKay seam, which is the central band of white salt running through the Malagarh deposit. As run be seen. the vein is vertical. and varies from a foot to 50 ft. in thickness. The

Jan 1, 1932

By ROBERT E. HARDWICKE

THE QUESTION of whether the production of oil should be limited to market demand has been constantly discussed during the last two years. Oil men, legislatures and courts have reached highly conflicting conclusions. Opponents of limitation to market demand assert that it is a scheme of the big purchasing companies to fix prices and to create a monopoly. Proponents, on the other hand, declare that such a limitation is necessary to prevent physical waste and that the effect on prices is merely incidental. A brief review of market demand legislation will disclose the confusion existing. The laws of Oklahoma,' prohibiting waste of oil and gas, specifically' authorize limitation to market demand as a method of preventink such waste. These laws and the proration orders based thereon have been upheld by the Supreme Court of Oklahoma, by several three-judge Federal District Courts, and by the Supreme Court of the United States.' Kansas has a similar law3 but no case has been found which discusses its validity. About a year ago the California Legislature passed a comprehensive conservation act, generally known as the Sharkey Bill giving authority to restrict production to an amount representing current requirements for use, taking into consideration oil and products in storage. This may be considered as equivalent to limitation to market demand. The Act was defeated upon referendum vote after a hard fought campaign in which it was charged that the Act would result in destruction of the independent operators.

Jan 1, 1932

By F. W. Bradley

GOLD is a large subject. One could talk about its geological or mineralogical occurrences, prospect- i11.g for it, mining of .it, its metallurgy or its marketing; but I have decided to limit my discussion to gold as a business-that is, to its production and marketing. In the production of gold, it is necessary to consider the many possible sources, the quantities available, the capital and operating costs and the chances of price-breaking competition. So in the following remarks I shall endeavour to point out that though gold is found in every formation constituting the earth's crust, though it is possible to-find it free in great concentrated placer deposits on the surface, though there are still large unprospected areas of both the surface and the crust, though it may be possible to produce it by the cheapest labor on earth, and by processes not as yet developed, it still has an unlimited market at a definite price. There is no reasonable fear of disturbance by the finding of bountiful deposits, or by cheapening the cost of production due to devaluation, or by the development of any easy processes for direct, or for by product, production.

Jan 1, 1932

By Scott Turner

AS IN OTHER lines of engineering, progress in mining was influenced during 1931 by the world-wide economic depression. Low-metal prices ? resulted in active efforts to reduce production costs of base-metal mines. Probably the chief factors in reducing costs were the greater efficiency of labor, due to better relations between management and workmen, to the scarcity of jobs, reduced wages in most base-metal mines, and to lower overhead expenses secured by drastic economies. The use of mechanical equipment continued to increase, due to more efficient designs and a better practical understanding of the applicability of such equipment to requirements. With one exception, there were no startling innovations in stoping methods, but there was notable progress in the better adaptation of mining methods. In the United States, no large new base-metal or silver mines came into production during the year. At a number of mines, output was curtailed, and operations were discontinued at several important producers. On the other hand world-wide interest in gold was stimulated, as evidenced by increased output from producing mines, the reopening of some old properties, and intensive prospecting for new deposits. Mining methods at several gold mines in the United States and Canada were modified or changed to obtain a higher extraction of ore or to meet the need for additional support of the mine workings at depth. Permanent record of improvements in mining practices has been made during the year by the Federal Government; the industry thus has available for its use more detailed information than ever before. This work was done through cooperation of the mining companies and their representatives with the United States Bureau of Mines, whereby many papers descriptive of practices and costs at individual mines have been published. The Bureau's program of describing methods and costs at the more important mines (those producing in excess of $100,000 annually) is nearly completed, but papers will be issued concerning such additional mines as may possess particular interest because of novel methods, exceptional conditions or operating results, and others to supplement reports already issued. In this way, an interesting record of the results of changing conditions, or innovations in methods, will be made available.

Jan 1, 1932

By AIME AIME

THE MILLING PROGRAM on Monday required a morning and afternoon session with a special luncheon of the Milling Committee in the Engineers Club at noon. Grinding and flotation were the main subjects of the papers which drew an attendance of fifty or more at each session. Under the direction of Chairman Arthur F. Taggart in the forenoon, all papers on flotation and general milling were considered, leaving the, after- noon free for crushing and grinding, with Dr. Galen H. Clevenger in the chair. The high spot was the first public presentation of the idea of size reduction of minerals by explosive shattering.

Jan 1, 1932

By AIME AIME

WITH a brilliance undimmed by hard times, the annual dinner on Wednesday evening, Feb. 17, was a complete success. More than 600 members, friends and ladies gathered early and filled the anterooms of the grand ballroom of the Commodore Hotel, while the president's reception was in progress, and then at the sound of the gong and with the music of the orchestra, rising above the happy din of conversation thronged to their seats at the tables. Following the "potage Ambassadeur"-probably to eliminate a very real hazard-the usual toy balloons appeared and a gay and lively scene, punctuated by multitudinous explosions, ensued, as the hundreds, of variously colored spheres bounced yon and hither until their gaseous existence was ended on the glowing end of a cigar or cigarette. On the speakers' dais sat C. E. Beecher, Chairman Petroleum Division; J. Vipond Davies, representative of A. I. M. E. on the Alfred Noble Prize Committee; Corbin T. Eddy, Alfred Noble Prize recipient; A.' S. Tuttle, Vice-president American Society of Civil Engineers; W. C. Mendenhall, Director U. S. Geological Survey; George C. Bateman, representing the Canadian Institute of Mining and Metallurgy; Paul D. Merica, Institute of Metals lecturer and Chairman James Douglas Medal Committee; Champion Herbert Mathewson, James Douglas Medalist; Robert E. Tally; retiring President; G. Temple Bridgman, toast-master; Scott Turner, incoming President; F. W. Bradley, William Lawrence Saunders Medalist; Fred Searls, Jr., Chairman William Lawrence Saunders Gold Medal Committee; Arthur Notman, President Mining and Metallurgical Society of. America; Robert J. Grant, Director U. S. Mint; Landon F. Strobel, Chairman New York Section; Howard Scott, recipient of Robert W. Hunt Prize; George. B. Waterhouse, Chairman Robert W. Hunt Prize Committee; F. M. Becket, Chairman Iron and Steel Division; Ora E. Clark, recipient of the J. E. Johnson, Jr., Award; Richard Peters, Jr., Chairman J. E. Johnson, Jr., Award Committee; E. C. Bain, Howe Lecturer; Sam Tour, Chairman Institute of Metals Division; and H. Foster Bain, Chairman. Charles F. 'Band Foundation Committee. ' Each was heartily applauded when introduced by Mr. Bridgman, as was Mrs. Tally, who also made a bow. The toastmaster made graceful reference in introducing Mr. Strobel, to the large part the latter had taken in planning the meeting.

Jan 1, 1932

SEC. 1. This Institute is incorporated under the Membership Corporations law of the State of New York; its corporate name is American Institute of Mining and Metallurgical Engineers, Inc.; and its abbreviated title A. I. M. E. SEC. 2. The objects of this Institute, as set forth in its certificate of incorporation, are: "To promote the arts and sciences connected with the economic production of the useful minerals and metals, and the welfare of those employed in these industries by all lawful means; to hold meetings for social intercourse and the reading and discussion of professional papers, and to circulate by means of publications among its members the information thus obtained, and to establish and maintain a place for meeting of its members, and a hall for the reading of papers and delivery of addresses, and a library of books relating to subjects cognate to the sciences and arts of mining and metallurgy."

Jan 1, 1932

Jan 1, 1932

Jan 1, 1932

By Donald M. Liddell, G. C. RIDDELL

THE cosmic ray continues to engage the attention of the physicists, and according to Millikan and Compton, experiments of the past summer indicate that these rays must come from interstellar space, but not from the stars themselves. According to press reports of the International Congress of Physicists at Rome, the view was given there that these rays have an initiating potential of over 750,000.000 volts. In the field of spectrographic investigation great strides have been made. The U. S. Naval Research Laboratories (R. F. Mehl and G. E. Doan of Lehigh) have just finished a year's work with a "radium torch" or "shadowgraphic apparatus" in the field of the X-ray, that bids fair to displace the latter to a great extent. The torch is more powerful., easier to operate and cheaper. Penetration of 10 in. of steel has been accomplished, which. is much -beyond the- -scope-, of the X-ray..

Jan 1, 1932

By E. J. KENNEDY

METHODICAL AND EFFECTIVE: thus may be characterized the fall meeting of the Iron and Steel and Institute of Metals Divisions at the Hotel Statler, Buffalo, N. Y., on Oct. 4 and 5. Approximately 200 registered. Interest centered 1111 the technical papers which were keenly followed, with substantial discussion: During the entire week of the National Metal Congress (Oct. 3 to 'i), there were also other sessions of interest' to metallurgists, directed by the America11 Society for Steel Treating, American Welding Society, Production Division of the Society of Automotive Engineers, the Iron arid Steel and Machine Shop Practice Divisions of the American Society of Mechanical En,' the Wire Association and the American Drop Forging Institute. The National Metals Exposition at the 174th Regiment Armory was well attended.

Jan 1, 1932

By Morris J. Elsing

FOR MANY YEARS lead and zinc have had the so-called protection of a tariff and it is the purpose of the following brief discussion to show what' such protection actually accomplishes with a view to forecasting the possible results of the present copper tariff. In analyzing the subject, tabulations of the United States production, consumption, imports and exports, including ore and concentrates and all of the metallic products, of both lead and zinc have been made for each year since 1900. Of these data, the relationship of the imports and exports and the relative foreign and domestic prices are shown in Table 1. The conclusions drawn from these figures are listed below. 1. The United States is an exporter of zinc. 2. The United States is an importer of lead. 3. The average price of zinc at St. Louis for the last 32 years has been no higher than on the London market even though zinc and zinc ore have "enjoyed" a protective (?) tariff of varying amounts per pound for 22 years of this period. 4. The average price of lead on the New York market for 32 years has been 1.2c. per pound higher than on the London market, the tariff varying from 0.75 to 1.5c. per pound of lead in ore, and 1 to 2c. or more on manufactured lead.

Jan 1, 1932

By E. H. Griswold

PETROLEUM production engineering is essentially the application of the laws of 'physics and mechanics to the production of oil. A true production engineer is one who can apply the principles of mechanics, hydraulics, thermodynamics, and other physical arts so as to facilitate' the efficient and economical recovery of oil. To this end he must have wide knowledge of practical field operations and a working knowledge of geology, with a thorough understanding of the underground state of the fluids which he seeks to control. Generally speaking, there have been two schools of production engineering, the California development and the Mid-Continent development. In California the preliminary production engineering was done by representatives of the U. S. Bureau of Mines and the State Mining Bureau, and was essentially subsurface work in regard to casing patterns, water shut-offs, and completion procedure, inasmuch as these were problems of the utmost immediate importance to the California industry. The oil companies were impressed with the value of such work and placed engineers, or more strictly speaking, engineering geologists on their field staffs. These men, realizing the need of further technical study in the mechanical phases of producing operations, added mechanical and mining engineers, and out of the blend developed what is now known as a production engineer.

Jan 1, 1932

By M. W. BERNEWITZ

ALTHOUGH many persons know that a lot of type metal and etchings are used in the U. S. Government Printing Office few would expect to find anything on metals in the annual report of the Public Printer, George H. Carter. Yet the report for the fiscal year ended June 30, 1931, contains many interesting items. For example: Among the 57,500,000 lb. of materials and supplies delivered to the printing office was little new metal, but the metal in circulation is 6,000,000 to 7,000,000 lb. In the cost of production $31,523 is charged against metal, nearly one-third for salaries and wages. In miscellaneous sales were $4,696 from waste metal and $1,147 from waste gold (from books). Electrotype and stereotype covered 11,438,314 sq. in. The vaults and storage rooms contain 1,700,000 plates and 130,000 pages of type containing 4,600,000 lb. of metal valued at $275,000. In what was known as the Congressional Globe vault were 46,000 stereotype plates; these were salvaged by remelting for other platemaking service. The Congressional Record superseded the Congressional Globe in 1873.)

Jan 1, 1932

By Charles H. Fulton

FOR some time it has been thought that there should be > closer relationship between the members' of the Institute engaged in education in the mining schools, the mining, metallurgical, ceramic, and geological departments of universities, and the members of the Institute actually engaged in the production of mineral products and the operation and direction of works. The American Society of Chemical Engineers and the American Ceramic Society have for some years past devoted especial attention to the educational matters of their respective fields. The Engineering Foundation, representing the great engineering societies of the country, is deeply interested in technical education and maintains a Committee on Educational Research.

Jan 1, 1932

By Frederick G. Tickell

GEOLOGISTS have been quick to adopt new methods in locating new oil fields and in finding the extensions, laterally or at depth, of the old fields. For most of these new methods he is indebted to the physicist, the engineer, and the chemist, although he has also drawn from such ordinarily unrelated sciences as bacteriology and protozoölogy. These last-named sciences have been of help in problems dealing with the origin of petroleum and, although not of direct application to oil finding, have furnished evidence of value in learning what oil is made from and what are the natural agencies involved in its formation.

Jan 1, 1932