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

Introduction “A Western mine is a hole in the ground owned by a liar. . ." -Mark Twain THE CAPITAL INVESTMENT DECISION Decisions pertaining to a firm's proposed capital investments can have vital short- and long-term consequences on the organization's ability to compete, and even survive.Capita1 investment decisions, in general, center around two fundamental activities: (1) allocating capital funds to specific investment projects or assets, and (2) obtaining necessary financing in such proportion as to increase the overall value of the firm. In essence these activities or decisions describe the science of finance (as contrasted with economics). Fimnce has been described in general terms as the study of how a present, known amount of cash is converted into a future, perhaps unknown, amount of cash (Archer, Choate, and Racette, 1979). Fundamental to understanding the science of finance and the capital investment decision process in general are the basic concepts relating to cash flow transactions, time, income generation (markets), expected returns, and risk. The functions of finance may be segregated into three fundamental decisions which a firm must address: (1) the dividend decision, (2) the financing decision, and (3) the investment decision. These decisions are interdependent and their joint impact on the objective of the firm must be considered. This book primarily addresses the concepts and components associated with the investment and financing decisions as they affect the practice of mine valuation. Responsibilities of Management A primary assumption incorporated in this book is that the fundamental objective of any firm is to maximize its value, or wealth of its owners (stock- holders). Here, the term wealth refers to the total current market value of the firm's assets. In the case of corporations, the wealth or value is considered to be represented by the market price of the firm's common stock. The price of the firm's common stock obviously will be affected by its investment, financing, and dividend decisions. Consequently, an optimal combination of these three decisions should maximize the value of the firm to its stockholders. It is important to point out that wealth maximization is a more appropriate and inclusive goal for the firm than profit maximization. Indeed, there is a difference between the two objectives in most situations. For instance, a firm can always raise profits by selling stock and investing the proceeds in treasury bills or certificates of deposit. This type of activity, however, would rarely cause net shareholder wealth

Jan 1, 1984

Homestake's Bulldog Mountain Operation near Creede, Colorado, in the San Juan Mountains at an elevation of nearly 2,750 m (9,000 ft), is subjected to short summers and long cold winters. Creede’s history dates back to 1889 when silver ore was discovered; and by 1892 production of over a million dollars per month was being shipped from mines located along the Amethyst Fault. The Bulldog Mountain Fault remained relatively untouched by the early prospectors. The United States Geological Survey recognized the potential of this fault in 1960, which led to the staking of many claims over the structure. Homestake leased properties in 1963 and in mid- 1964 a tunnel was started at the 2,956 m (9,700 ft) level with encouraging mineralization being encountered. In 1968 a decision was reached to build a flotation mill of 318 mtpd (350 stpd) capacity. The erection of the mill was completed in early 1969, six years after the first exploration was begun. Since initial start-up, extensive drifting has been done on several separate levels. Two underground hoist installations serve the various levels and many thousand feet of vertical mining operations. Due to the unconsolidated nature of the vein, a new unique underhand cut-and- fill mining method was developed. This procedure is the reverse of the normal cut-and-fill and proceeds from the top down under cemented sand fill, which, while expensive, has greatly reduced s toping hazards. Prior to 1977, a considerable quantity of silver was lost in the slime fraction of the ores processed because of oxidation and other inherent characteristics of individual minerals. Due to Homestakefs favorable experience in treating the slime fraction of the Lead, South Dakota gold ores, experiments with leach methods to recover silver from the slimes by Carbon -In -Pulp offered' the potential for additional silver recovery. Work was begun on the Carbon-In-Pulp plant in April 1976 and completed in December of that year at a cost slightly exceeding $2 million. The C. I. P. plant was designed for 136 mtpd (150 stpd) of current plant slimes plus 227 mtpd (250 stpd) of slimes dredged from the old tailings during the summer season. The sand fraction of the flotation

Jan 1, 1981

By A. L. Bollens, R. H. Johnson

The appraisal of oil wells, now that we have the age-size method of making composite decline curves, and the present worth of successive time units method of valuation, has its greatest remaining uncertainty in the difficulty of extending into the future the price curve and the composite production curve. The point of attack in this paper is the carrying on (or extrapolation) of the production curve. Led by the valuable discovery of Lewis and Beal that the decline curve is nearer the hyperbolic class, y = (x + a)-", than any other form, the current practice is the graphic method. The data are plotted on logarithmic paper and shifted with successive trials until the line becomes straight. This straight line can then be extended into the future. The method was a great help during the period when, for tax purposes, there was need for a quick method even though the errors were large. Now that we seek greater validity in our methods we find the following faults with the current method. 1. Where the shift is great (it exceeds 10 in some cases) the scale cannot be read with the necessary precision so that the resulting data would give a very irregular and inaccurate curve. 2. Where the curve cannot be straightened on logarithmic paper because of sigmoid shape the method has a serious systematic error. We believe the sigmoid curves to be more common than usually supposed, indeed when one considers the number of variable causative factors this is to be expected. We have therefore been seeking a method that is free from these difficulties and yet not so laborious as fitting a curve to the data and the calculation from the formula which, since it involves looking up logarithms, is unduly time-consuming. The method here described has been developed on the basis suggested by Earl Oliver, that the amount of oil produced per month or year for each reduction of production of a barrel of oil per day could be plotted to advantage. A step forward was made by Earl Carpenter in this laboratory, and some of the

Jan 1, 1928

By W. G. Matteson

IN 1915, the State of California passed a law of great scope and importance. This law has been in successful operation for., year and may be briefly described as an act "establishing and creating a department of. the State Mining Bureau for the protection of the natural resources of petroleum and gas from waste and destruction through improper operations in production; providing for the inspection of petroleum and gas wells; requiring all persons operating petroleum and gas wells to make certain reports" and providing the necessary officers and assessments-to carry out the provisions of the act. The statute provides for a separate department of the State Mining Bureau, under the general supervision of the State mineralogist, with a staff composed of a "state oil and gas supervisor" and four deputies. It rules that all petroleum and natural gas wells shall be drilled, operated or abandoned under the supervision of the State supervisor, who shall order such tests or remedial work as seems to him necessary to protect the interests of property owners and the general public. It also provides for a board of arbitration to consider orders given by the supervisor which are not acceptable to the well owner. Section 18 of the, act, which is the provision that is directly related to, this paper, requires "the owner of any well referred to in this act to keep a careful and accurate log of the drilling of such well;" and further requires that this log shall show the character and depth of the formations passed through or encountered in the drilling, particularly the location and depth of the water-bearing strata; the character of the water encountered (so far as ascertained); whether the water was shut off, and, if so, at what point; that it shall show completely the amounts, kinds and size of casing used; the depth at which oil-bearing strata are encountered; the depth and character of the strata, and whether all water was successfully and permanently shut off so as to prevent percolation or penetration into the oil-bearing strata. -

Jan 2, 1917

By Eric R. Morgan, J. C. Shyne

STRAIN aging is the name given to time-dependent changes which occur in the properties of cold-worked metals and alloys during storage. These changes are best observed through a study of mechanical properties, as illustrated in Fig. I for low-carbon steel. The effects of strain aging are usually regarded as being detrimental, particularly in deep-drawing steels. For example, an increase in yield strength and loss in ductility lead to buckling and tearing during drawing. At the same time the return of the yield point results in the formation of Luders bands or stretcher strains during the pressing operation. As a result of these effects many attempts have been made to eliminate strain aging from low-carbon steel. The problem still remains, however, because all known methods of preventing strain aging result in a more costly steel. The present work is an assessment of the situation in terms of theoretical, practical, and economic factors and suggests a new solution to the problem. Previous Work According to the Cottrell theory,' strain aging in a-iron may be regarded as the migration of interstitial atoms to free dislocations and the anchoring of dislocations by the resulting atmospheres. It may be concluded that the important factors which will govern the degree of strain aging are the diffusivity, the effective amount of interstitial element in solution, and the time of aging. The diffusivities and effective amounts of carbon and nitrogen in solution in low-carbon rimming steel are such that significant aging occurs in a few hours' storage at room temperature. Strain aging in deep-drawing steels cannot be controlled by controlling the time of aging because in commercial practice this is determined by economic factors concerned with inventories and may be several weeks. The diffusivity of nitrogen is twice that of carbon at room temperature but the diffusivities can be controlled by controlling the storage temperature. The retardation produced by only a 25 °C drop in temperature is significant but the cold storage of large steel inventories is an impractical solution to Table I. Analysis of Base Materials Alloy Pet C Yet 0 Pet N Vac 0.0037 0.052 0.0003 H 0.0044 0.013 0.0008 C 0.06 0.0014 0.0001 the problem. By far the most simple and effective ways to control strain aging are through control of the amount of carbon and nitrogen in solution. This may be effected through alloying, controlled precipitation, or by eliminating the carbon and nitrogen. Consider first the control of the amount of carbon in solution. The simplest approach would be alloy -ing in which strong carbide-forming elements are added. Examples of this approach are the additions of titanium' and niobium9 0 steel. These elements also combine with nitrogen and oxygen and when added in sufficient quantity result in a completely killed and non-aging steel. They are, however, impractical additions because they result in a costly steel. Carbon and nitrogen are often removed from iron on a laboratory scale by annealing in wet hydrogen, but because of cost this process has never been adopted on a commercial scale. In practice the amount of carbon in solution is controlled by the rate of cooling from the annealing temperature (710°C or 1310°F). In commercial box

Jan 1, 1958

By W. A. Ver Wiebe

The year 1939 in Kansas, with a production of 57,944,300 bbl. from 19,669 wells, shows a slight recession from the peak of oil production reached the previous year, when slightly over 59,000,000 bbl. of oil was marketed. The previous peak had been reached in 1917 with 45,451,000 bbl. marketed. Another still earlier peak had been reached in 1904, when slightly less than 5,000,000 bbl. was produced and sold. The production of gas probably reached a new peak during 1939 with a total of over 69 billion cubic feet. Between the peak of the year 1908, when over 80 billion cu. ft. was produced, and that of 1939 the production dropped to 16 billion cu. ft., in the year 1921. During the year 1458 wells were drilled. This figure is somewhat lower than that given in several trade journals, because it does not include wells that were deepened or recompleted in a different geological horizon. Nearly 75 per cent (1029) of the total number of wells were completed as commercial oil wells (824 in western and 205 in eastern Kansas). The commercial gas wells completed number 71, of which 24 are in eastern Kansas and 47 in western Kansas. The remaining completions include 154 dry holes in eastern and 204 dry holes in western Kansas. Based on daily potential capacity the new discoveries of the year accounted for a cumulative initial production of 264,000 bbl. in eastern and 1,158,827 bbl. in western Kansas. It is interesting in this connection to note that the number of wells completed in the state rose gradually to a first peak in 1904, when 2782 were drilled. The number dropped off rapidly to 368 three years later, but rose to the second and highest peak in 1918, when 4671 wells were completed. In the period between 1904 and 1912 more gas wells than oil wells were completed. Between the high peak of 1918 and the somewhat lower peak of 1937, the low point was reached during 1931 with the completion of only 470 wells. In the matter of new pools discovered, Kansas again ranks high. The exact number depends somewhat upon the interpretation of a "new" area—whether it should be called a new pool or a long extension of an older pool. In some places this determination cannot be made until more wells are drilled within the area. Therefore, the figures given

Jan 1, 1940

By W. A. Ver Wiebe

The year 1939 in Kansas, with a production of 57,944,300 bbl. from 19,669 wells, shows a slight recession from the peak of oil production reached the previous year, when slightly over 59,000,000 bbl. of oil was marketed. The previous peak had been reached in 1917 with 45,451,000 bbl. marketed. Another still earlier peak had been reached in 1904, when slightly less than 5,000,000 bbl. was produced and sold. The production of gas probably reached a new peak during 1939 with a total of over 69 billion cubic feet. Between the peak of the year 1908, when over 80 billion cu. ft. was produced, and that of 1939 the production dropped to 16 billion cu. ft., in the year 1921. During the year 1458 wells were drilled. This figure is somewhat lower than that given in several trade journals, because it does not include wells that were deepened or recompleted in a different geological horizon. Nearly 75 per cent (1029) of the total number of wells were completed as commercial oil wells (824 in western and 205 in eastern Kansas). The commercial gas wells completed number 71, of which 24 are in eastern Kansas and 47 in western Kansas. The remaining completions include 154 dry holes in eastern and 204 dry holes in western Kansas. Based on daily potential capacity the new discoveries of the year accounted for a cumulative initial production of 264,000 bbl. in eastern and 1,158,827 bbl. in western Kansas. It is interesting in this connection to note that the number of wells completed in the state rose gradually to a first peak in 1904, when 2782 were drilled. The number dropped off rapidly to 368 three years later, but rose to the second and highest peak in 1918, when 4671 wells were completed. In the period between 1904 and 1912 more gas wells than oil wells were completed. Between the high peak of 1918 and the somewhat lower peak of 1937, the low point was reached during 1931 with the completion of only 470 wells. In the matter of new pools discovered, Kansas again ranks high. The exact number depends somewhat upon the interpretation of a "new" area—whether it should be called a new pool or a long extension of an older pool. In some places this determination cannot be made until more wells are drilled within the area. Therefore, the figures given

Jan 1, 1940

By G. D. Van Arsdale

THE paper of Mr. Posnjak presents a laboratory confirmation of the well known facts that air ox-idation of pure solutions of ferrous sulfate is slow and difficult and that, like many other similar reactions, the speed, may be greatly accelerated by the presence of other substances, often in very small amounts, the effect of the presence of copper being determined ex-perimentally in this case. However, it should not be. overlooked that copper is always present in heap leach-ing solutions in amounts equal to or greater than those in the experiments described; therefore the paper may be considered as an explanation of present results rather than a possible improve-ment to be added to present practice. It is not practicable and it does not pay to precipitate copper by ce-mentation below a point about 5 lb. per 1000 gal., equivalent to about 0.0005 mol. Cu. per liter, compar-ing with the approxi-mately 0.0009 mol. per liter of curve 2 in the diagrams given of course, also, in the heaps local concentrations are usually very much higher than this, which is also true of the effluent li-quors, so that I feel that it is safe to say that copper is already present in amount sufficient to realize, as large an accelerating effect as is practicable. Too much im-provement or refinement cannot be expected in a method of this kind, due to commercial limitations. It should be remembered that chemically and physically there is no sharp dividing line between leaching in place, heap leaching, and the usual tank leaching practice, practi-cally the same reagents being used in all three. From the viewpoint of extractions, etc., it is not common sense to apply leaching in place to an orebody carrying enough copper to pay for mining; and the same is true of heap leaching, for an ore carrying enough to pay for the crushing, handling, etc., of ordinary leaching. That is to say, leaching in place should properly be consid-ered only for an ore too low-grade to pay for mining, and heap leaching for the next higher grade, still how-ever too low-grade to pay for crushing and other re-finements. There is no advantage in leaching without mining or in heap leaching except lower cost of in-stallation and handling; on the other hand there are very distinct disadvantages which are inherent and which should prohibit their use except where necessity requires. The object of metallurgy is to make money out of the handling of ore, and it is purely a question of money as to how far we can go in "improving" or

Jan 7, 1927

By Harry Roeser

Short cuts for determining the constants of oil decline curves, with the method of least squares as a starting point, are presented and applications made to practical examples. The nature of the raw data does not justify rigid adherence to the orthodox theory but does lend justification to convenient methods of approximation within reasonable limits. If the conventional form y = kxn were changed to y = k(x + c)', methods of determining the curves would be simplified and greater uniformity in calculated results would probably follow. As A result of the publication, several years ago, of some articles on determining the constants of empirical formulas, the determining the constant's of types of curves used for estimating the production decline of oil wells was brought to the writer for study. Methods requiring a minimum of time and labor and a maximum of rigor were sought, as it appeared that the nature of the data from which such curves are computed and the relative uncertainty of occurrence of the events predicted from them did not justify close adherence to the theory on which the solution of such problems is ordinarily based. The technical deficiencies of the solutions presented in this paper, from the standpoint of the method of least squares, are readily apparent to those familiar with that method, but their presentation in detail here is irrelevant to the subject matter. However, it is the author's conviction, after a rather exhaustive study of the problem, that the value of the solutions lose little by the approximate application of the conventional theory. It must be understood by those who use these formulas that the solutions herein given, and the formulas based on them, are merely facilities to aid the valuation engineer in forecasting future events. It is assumed, also, that before application is made of them, prescient judgment based on the circumstances in each case, shows that the forecast has some probability of realization. On this basis only will these formulas be found useful.

Jan 6, 1924

By Edward Hyde

THE HIGH-TEMPERATURE SCALE IN OPTICAL PYROMETRY AT the basis of optical pyrometry lie the theoretical and experimental data of the so-called blackbody. The black body is essentially a theoretical conception, with certain simple properties attributed to it -fundamentally, the property that its radiation at any temperature is a unique function of the temperature and does not involve any other variables. As a theoretical conception, an equation has been developed by Boltzmann connecting the total radiant power with the temperature, and another equation by Planck connecting the distribution of radiant power throughout the spectrum with the temperature. The integral of the latter with respect to wave-length conduces to the former and permits the evaluation of the constant c1 of the Planck equation, ass given in the form. J-= cl?-5 c2 (1) e ? T ? 1 assuming that the constant Q of the Stefan-Boltzmann law E=a(T4-T40) is known. The other constant c2 is arrived at by other methods, which will be discussed later. This equation for the black body lies at the foundation of optical pyrometry. To make the discussion complete, it should be stated that the theoretical black body is quite closely realized by a hollow enclosure with walls at a uniform temperature and radiating through a small orifice. The electrically heated black body, first introduced by Lummer and Kurlbaum, is an essential part of the equipment of a pyrometric research or testing laboratory. Numerous investigations have shown that its radiation conforms to that of the theoretical black body within experimental errors. Hence by operating the electrically heated black body at the melting point of some pure metal for which the temperature of melting has been determined on the vas scale. a standard is obtained for comparison with

Jan 9, 1919

By Louis V. Bender

AfteR investigating the work of coal-dust fired reverberatories of the Canadian Copper Co., at Copper Cliff, Ontario, the management of the Washoe Reduction Works decided to experiment with and ascertain the advantages of using coal dust as a fuel in their reverberatories. Consequently, during the month of June, 1914, reverberatory furnace No. 8 was changed in order to use powdered coal as a fuel. The results obtained by this method of firing are gratifying and show a decided saving in cost of smelting as compared to grate firing with lump coal. The furnace, as remodeled, is 124 ft. long by 21 ft. wide, and varies in height from 8 ft. 6 in. at the back end to 5 ft. 7 in. at the skimming end. The general construction of the furnace is similar to that of the other furnaces at this plant. There are no side doors to this furnace, as it was thought that with the present arrangement for feeding no "fettling" or "claying" would be required. The interior of the furnace can be inspected through the burner port holes, after shutting off the burners and giving a few seconds' time for the gases inside the furnace to clear away. The charging is done on either side of the furnace from longitudinal hoppers, extending a distance of 74 ft. from the back end of the furnace. Leading from the hoppers into the furnace are 6-in. pipes, spaced 191/4 in. apart, through which the charge is intermittently dropped. The charge is kept well above the slag line at all times; in this way the side walls are protected and no fettling is needed on this portion of the furnace. The remainder of the furnace requires fettling. After operating for three months, we found that the bricks were eaten into along each side wall from the skimming door back to the point where the charge had been dropped. The depth of this cutting away was 8 in. close to the front end and gradually tapered to zero at a distance of 50 ft., and was greatest on the side of the furnace having the larger flue connection. Hoppers will be put in for the entire length of furnace, from which fettling material will be dropped, to prevent this cutting. After the run of three months, the roof was in excellent condition. At the back of the furnace the bricks were not cut into at all; at 30 ft.

Jan 1, 1915

E. G. WOODRUFF, Houston, Tex. (communication to the Secretary*). -Mr. Matteson has presented to us an idea worthy of our careful consideration. We have real troubles in the petroleum industry and as the supply of crude is exhausted our problems become more complicated and more numerous. Therefore, we who are engaged in field work are forced to consider all possible means which promise assistance in the location of prospective pools and the economic development of pools already located. In our country we are accustomed to turn to the. Government for relief in all our troubles. Do we want an Oil and Gas Bureau doctoring us? Will such a bureau do us practical good? The principal point Mr. Matteson suggests is that such a bureau should he authorized to receive and file all well logs. In analyzing such function, I am led to the following conclusions: If well logs are simply to be filed they would be useless. If they are to be filed and the files opened to the public, what benefit will be derived and can such action be taken justly? There is no doubt that if the record of all wells drilled in the United States were available the petroleum industry would be saved an immense amount of needless expense. Accumulating conditions would be better understood and prospecting more intelligently directed. Our other consideration is: can the oil companies be required to open well records to the public justly? I think all will agree that if any one should have the advantage of a well record it should be the company that drilled the well. If the oil companies are forced to file such record and open the files to the public, the company drilling the well cannot derive the exclusive benefit from the money expended. Would it be just for a small company to be compelled to reveal its records of a well it had recently completed, to its strong competitor who holds near or even adjacent leases? Would it have been just to the successful companies, in the Gulf Coast country to have been forced to display their hard-earned knowledge of 15 years to the host of younger competitors who have recently flocked to the Gulf Coast attracted by the success of those who have labored so long and learned of the conditions controlling the fields through the hazards of the industry.

Jan 10, 1917

By F. P. Donohue

The observations and data presented in this paper are the result of extensive study of flowing wells, most of which were in the Maracaibo Lake Basin of Venezuela. The Lago Petroleum Corpn. had extensive production in this area, gas-oil ratios were low, and the problem was to determine whether by careful handling of the wells with respect to flowing conditions and by conserving the gas, the oil production of the wells could be maintained by natural flow until it had declined to a rate which could be handled with an ordinary working barrel, thereby avoiding the high cost of gas-lift equipment installation in the lake bed. The problem was complicated by the nature of the wells themselves. Production is from soft, comparatively unconsolidated sands, necessitating screen pipe in all wells. It was not only necessary to keep the wells flowing but to keep them flowing without heading, as the release of pressure upon making a head brought large quantities of sand into the wells, sanding them up or possibly cutting out the screen pipe. In furtherance of the plan of keeping wells flowing as long as possible, each well was equipped with a casinghead and tubinghead recording pressure gage, and an oil and gas separator set. About one-half of the wells were equipped with gas meters. All wells were tubed before bringing into production. Frequently individual gages were taken on each well. A large scale chart was plotted for each well, showing daily oil production, gas production, gas-oil ratio, tubinghead pressure and casinghead pressure. Any deviation from the normal was immediately checked and the condition remedied if possible. Theory of Flowing Wells Based upon considerable study of these records, it is believed that the flow of a well actuated by gas is mainly a problem in velocity, a certain minimum velocity in the flow string being necessary for the gas to carry the oil. If this minimum velocity is not obtained the oil drops back and the well heads or goes dead. The point of minimum velocity is of course at the bottom of the tubing, where the gas is under the highest pressure and therefore occupies the least volume. Some years ago when the success of the gas-lift at Seminole was so pronounced, there was considerable broadcasting of the statement that

Jan 1, 1930

By A. J. Teplitz, J. K. Rodgers, E. M. Pohoriles

This note is presented in order to call attention to a newly developed laboratory apparatus that appears to have interesting possibilities for the study of lost circulation of the pressure-parting type, for a more realistic evaluation of sealing materials for this type of loss, and for investigation of other aspects of hydraulic fracturing. A study of lost circulation, conducted jointly by operating divisions of the Gulf Oil Corp. and the Gulf Research & Development Co., has been in progress for the past few years. Earlier phases of the study dealt with mechanical factors contributing to loss of returns in laminar type sediments.' One aspect of this type of loss which has been widely discussed in the literature and elsewhere concerns the geometry of the fractures into which such losses occur. This subject is not merely a philosophical one, but has an important bearing on procedures for combating lost circulation difficulties and on other well operations. The further course of the collaborative studies previously mentioned has produced some information on this subject which, though limited in amount, is believed to be significant. In several typical cases of lost circulation in laminated shale and sand formations, the wells have been surveyed with instruments2,3 capable of detecting the points of loss with considerable accuracy. These wells were located in the Gulf Coast of Texas and Louisiana, in the Texas Panhandle, and in the Rocky Mountain area. In each of these instances the loss was shown to be occurring at some distance removed from the bottom of the hole and sharply confined to a very narrow interval, less than 1 ft in thickness. It is rather difficult to imagine that fractures of a vertical nature' would be of the limited extent indicated by the surveys in these wells. Furthermore, the high rates of loss at relatively low pressure differentials observed in some of these instances together with the narrow intervals involved would appear to require the radial flow pattern which would be associated with a more or less horizontal fracture plane. In view of the foregoing observations and records of successful squeeze cementing operations, in attempting to construct a laboratory apparatus For simulating pressure induced lost circulation, it was decided that the design should be based on a horizontal type of fracture. It was realized that5,6 Vhe production of horizontal fractures in a formation with non-penetrating fluid requires some mechanism for transmitting vertical components of the hydraulic forces to the plane of parting. This was accomplished, as will be evident in the description of the apparatus that follows, by providing recesses in the wall of the borehole which are believed to be representative of wellbore configuration found in Gulf Coast wells. The possible influence of such borehole irregularities on both pressure fracturing and the treatment of lost circulation appears to have been neglected in many studies of these subjects. It is believed that the present apparatus, incorporating features that take into account some of the factors mentioned, will provide means of gaining a further understanding of pressure induced fracturing and possibly for more realistically evaluating the numerous sealing agents, particularly the non-time-setting materials employed in treating the pressure-parting type of loss. DESCRIPTION OF APPARATUS The test cell used in the laboratory investigations is shown in Fig. 1. A schematic diagram of the entire system is shown in Fig. 2.

Jan 1, 1956

By John P. Hager, Igor A. Wilkomirsky

The thermodynamic properties of the Pb-Ag system have been determined between 775° and 950°C by the cell: Electrotransport measurements on silica-saturated PbO-SiO2 melts established that the conduction was entirely ionic and that lead is present only in the divalent state. The activities of lead and silver exhibit Positive deviations from ideal behavior. In dilute solutions the activities of lead and silver follow Henry's law. The values obtained for yhb and yig at 1200°K are 1.49 and 1.69, respectively. Determination of a portion of the liquidus curve agrees well with the established phase diagram. provides an accurate means for the thermodynamic study of liquid alloy systems. However, Wagner and wernerl have shown that cells of type I are limited to alloy systems for which the reaction at the alloy-electrolyte interface will be extremely small. The traditional electrolyte for cells of type I has been a low melting point mixture of group IA chlorides, to which a small amount of the compound ACIZa has been added. However, the choice of a chloride electrolyte may not always be practical, in that the Gibbs free energies of formation of the compounds ACIZ, and BCIZb may not be sufficiently different to minimize Reaction [I]. On the other hand, the Gibbs free energies of formation of the oxides of metals A and B may be sufficiently different to minimize Reaction [I]. In this case, the use of molten oxide electrolyte would be clearly advantageous. In the present study, the thermodynamic properties of the Pb-Ag system have been investigated using the cell: Previous galvanic cell studies on the Pb-Ag system2'= are not reliable due to the displacement reaction between the alloys and the chloride electrolyte. Wagner and ~erner,' using Laitinen and Liu's' value at 450°C for the standard electrode potential of Reaction 111, have estimated the percent error in the activity of lead bPb) when using a chloride electrolyte. At 1000°C the error for xpb = 0.10 is 12 pct. Taking the Gibbs free energies of formation for PbClz and Ag cI,' and the equations of Wagner and Werner,' the error in apb at 1000°C and Xpb =0.10 was calculated to be 140 pct. However, using the Gibbs free energies of formation for Pb O' and an estimated value for Ag 20, the error in apb when using a molten oxide electrolyte at 1000°C was estimated to be less than 1 pct for The virtual reaction of cell I1 for the passage of n Faradays of positive electricity from left to right in the cell is: where 5 is the Faraday equivalent (23,063 cal per v equivalent), E is the electromotive force of the cell in volts, and n is the number of Faradays of electricity required for the transfer of 1 g-atom of lead through the cell. The value of n should be equal to 2 since lead is generally divalent in oxide melts. However, the presence of either tetravalent lead ions or electronic conductivity through the molten oxide electrolyte will result in a value of n greater than 2. Bockris, Kitchener, and Davies' have determined the amount of ionic conductance in a liquid PbO-SiO2 mixture (xPbO= 0.50) at 920°C by measurement of the volumes of CO and C& evolved at a carbon anode during electrolysis. From their data a value of 2.13 * 0.16 was calculated for n. Although their measurements indicate the possible presence of multivalent lead ions and/or electronic conductivity, their measurements were not at silica saturation and no definite conclusions can be drawn. However, as a result of the electrotransport measurements described in the next section the ;due of n can be taken as equal to 2.

Jan 1, 1969

By Robert H. Richards

If one holds up a prism, or wedge of glass, with narrow angle, say l° to 2O, and compares the transmitted image with the image seen above or below the prism, the former will be found to be thrown to one side by an amount varying with the angle of the wedge. Speaking of the two rays as the direct ray and the bent ray, we may say, that when the bisecting plane of the prism is at right angles to the line of sight, the angle between the direct ray and the bent ray will be constant for any given prism. If now we place a prism or wedge of glass in such a position that it half-covers the objective of a telescope, we shall obtain on looking through it two images of every object seen—one image by the direct ray, which comes through the unaovered half of the objective, the other which comes through the prism, and is the image by the bent ray. The angle of divergence of these two raps will be constant and unalterable, whether the telescope is directed to a near object, with its eye-piece at increased distance from its objective, or upon a ' distant object, with eye-piece nearer to the objective. That is to say, if the " throw " or apparent dislocation of the image is one foot in one hundred feet it will be two feet in two hundred, ten feet in a thousand, and so on. The usual form of stadia-telescope has at the focal point of the objective two spider-lines, placed at a definite distance apart and intended, let us say, to represent a throw of one foot in one hundred feet. But as the distance between lines remains the same, while the distance from the objective to the webs diflers with every variation in the distance of observed objects, it follows that the angle between the lines of sight which these two spider-lines define cannot be con stant, but must vary with every increase or decrease of distance be tween the instrument and the object viewed. If in Fig. 1 we represent three positions of the spider-lines by W1, W2, W3, and three objects corresponding to those positions by 01, O2, 0, at near, medium and distant positions, we see at

Jan 1, 1892

By Pedro G. Salom

I HAVE had an opportonity, within the last few months, of making a large number of physical and chemical tests of steel for boiler and ship-plate, which has been, and is now being, used principally for the United States Government cruisers, now building in Mr. John Roach's yard, at Chester, Pa. Through the courtesy of the Messrs. Houston, of the Chester Rolling Mills, I have the honor to lay before the members of the Institate the results of these tests. These results have developed some points in regard to the nature of steel, which are more or less new, and which, I hope, will prove interesting. The original specifications, as regards the manner of testing, were so inipracticable (when their severity mas taken into consideration), that the keel of the first vessel, which will be launched next month, would, had they been carried out, probably not have been laid until next year. At my suggestion, in order to simplify and expedite the immense amount of testing that had to be done, the Naval Advisory Board was induced, after considerable discussion, to alter the specifications, so as to test each heat, instead of each lot of twenty plates, but reserved the right of making the quenching-test on a piece from each ingot, after it had been rolled. This relieved us from the anxiety of having a lot of plates rejected, after they had beell rolled and sheared, by reason of the presence of one or two plates which might have been injured in heating or rolling, or which might not have been able to stand the tests; while it insured the Government in obtaining a uniform quality of steel, and prevented the temptation to introduce a half-dozen or more had plates in a lot, and run the risk of their being selected as the testplates. I give below a portion of the original specifications, as prescribed

Jan 1, 1884

By W. H. Kantner

In this paper, no attempt will be made to theorize on subsidence. Only known data and actual facts will be given, with a few exceptions noted where other factors and outside influences tend to change subsidence directly resulting from porphyry caving. The area under observation is known as the Southeast Extension of the East orebody. The orebody is irregular in outline and dips to the south and the east, extending in depth from about 425 ft. below the surface to 1050 ft. below the surface. In the upper horizon, the orebody is about 400 ft. long and 150 ft. wide. At 720 ft. below the surface, the ore outline is approximately 450 by 170 ft.; 70 ft. below this, it is 500 by 110 ft., with an extension at the north end to the east 270 by 120 ft. From this elevation to about 900 ft. below the surface, the ore spreads out to the cast and south, being about 700 by 500 ft. between these vertical limits. Below this it pinches out and at 1060 ft. below the surface is only 100 by 100 ft. The nearest point of the orebody—which is on the northwest side—is 600 ft. 'southeast of the Sacramento shaft. The country rock is all porphyry. Fig. 1 is a vertical east-west section showing orebody and original surface. The surface over the orebody was fairly regular and in this area and adjacent to it were portions of the surface plant, roads, and the main plant railroad to the concentrator. Fig. 2 is a map of the surface over the porphyry area. Caving operations started in April, 1925, at the approximate top of the orebody. The first lift was on the 600-ft. level; the ore was extracted by means of the Morenci timbered slide method and was from 425 to 455 ft. below the surface over an area of about 22,000 sq. ft. This lift was finished in May, 1926. The second lift, on the 650-ft. level, was already in production by May, 1926, so extraction of ore was continuous. This lift was 48 ft. high and covered an area of about 30,000 sq. ft. The ore from this lift was extracted by means of a modified Morenci timbered slide method. This lift was finished in March, 1927. The direction

Jan 1, 1934

By Ralph B. Stevens

INTRODUCTION Underground fires continue to be one of the most serious hazards to life and property in the mining industry. Although underground mines are analogous to high-rise buildings where persons are isolated from immediate escape or rescue, application of technology to locate and control fire hazards while still in their controllable state is slow to be implemented in underground mines. Even in large surface structures such as hotels, often only fire protection systems which meet minimal laws are implemented due to the high cost of adding extensive extinguishing systems, isolation barriers, alternate ventilation, escape routes and alarm systems. Incomplete and ineffective protection occasionally is evidenced where costs would not seem to be a factor, such as the $211 million MGM Grand Hotel fire November 21, 19801. Paramount in increasing fire safety and decreasing the threat of serious fire is early warning followed by proper decision analysis to perform the correct action. However, very complex fire situations can be produced in structures such as high-rise buildings and underground mines simply because of the distances between the numerous fire-potential locations and fire safe areas. Other complexities arise when normal activities occur that emit products of combustion signaling a fire condition to a sensitive fire/smoke sensor. For example, the operation of diesel equipment or the performance of regular blasting can produce combustion products that reach the sensitive alarm points of many sensors2. Smoke detectors for surface installations provide fire warning when occupants are at a distant location or when sleeping, thus greatly reducing injuries and property damage. However, when installed in the harsh environments of underground mines, fire and smoke detection equipment soon becomes inoperative, unreliable, or requires excessive maintenance. The U.S. Bureau of Mines has performed many studies and tests to improve fire and smoke protection for underground mine workers3. This paper describes several USBM safety programs which included in-mine testing with mine fire and smoke sensors, telemetry and instrumentation to develop recommendations for improving mine fire safety. It is hoped that the technology developed during these programs can be added to other programs to provide the mining industry with the necessary fire safety facts. By recognizing fire potentials and being provided with cost-effective, proven components that will perform reliably under the poor environmental conditions of mining, mine operators can provide protection for their working life and property equal to that which they provide for themselves and their families at home. The basis of this report is two USBM programs for fire protection in metal and nonmetal mines4,5 and one coal program6. The data was collected beginning in May 1974 and continuing through the present with underground tests of a South African fire system installed at Magma Mine in Superior, Arizona, and a computer-assisted, experimental system at Peabody Coal Mine in Pawnee, Illinois. The conduct of each program was as follows: • Define the problem and its magnitude in the industry • Develop concepts to solve or diminish the problem • Review available hardware or systems approaches to fit the concepts • Install and demonstrate the performance of a prototype system through fire tests in an operating mine. MINE FIRE FACTS Whether in coal or metal and nonmetal mines, the potential severity of fire hazard is directly related to location. As shown in Figure 1, fire in intake air at zones A, B, C or D can cause contamined air to route throughout the mine quickly if not detected, isolated or rerouted. Causes and location of former metal and nonmetal fires are represented in Table 1; the cause and location of fatalities and injuries is shown in Table 2. Coal-related fires and their impact on deaths and injuries are graphed in Figure 2; their locations are described in Table 37. Significantly the table shows that the hazard to personnel was three times greater for fires occurring in shaft or slope areas, and the percentage of deaths and injuries was four times that of other areas. Number of Persons Affected A 129-mine sample indicated that from 8 to 479 employees per shift work in underground metal and nonmetal mines, and that deeper mines have larger populations, as shown in Figure 3. Coal mining relates similar employment, and a 16-state sample of 670 mines employing at least 25 persons shows the distribution in Figure 4. Drift mines accounted for 58 percent of the sample but employ only 45 percent of the underground workers.

Jan 1, 1982

By Jules E. Jenkins

IN the past quarter century the seismograph has played an increasingly important role in evaluating vibratory effects transmitted to adjacent communities by industrial blasting operations. In this period research has advanced through two major phases—from falling pin seismometers to three-component recording seismographs. The initial phase of this research is now regarded as the era of recording, during which the seismograph merely recorded occasional events. It has emerged from this stage into the era of control and analysis and in this later period has been recognized as a full-fledged industrial tool. Although the falling pin machines of earlier years indicated probable amplitudes of industrial blasting vibrations, they gave no reliable measure of such displacements, nor did they provide essential information concerning direction or frequency of motion. The first contribution of the three-component recording seismograph was the weight-for-distance formula developed by the U. S. Bureau of Mines. This empirical formula enabled users of commercial explosives to determine beforehand the probable vibratory effects of a blast when the weight of the explosives charge and the distance from the shot point were known. This formula has withstood the test of time and is still applicable for blasts detonated by instantaneous methods. The second major contribution of the three-component recording seismograph followed the introduction in 1945 of short period or millisecond delay detonation. This might be described as a two-stage contribution, the first of which revealed a 50 pct reduction in the vibration magnitude when millisecond detonation was used rather than instantaneous discharge. This second part of this double contribution led to the discovery of the vibration dip phenomena, see Fig. 1. In Fig. 1 the horizontal coordinates indicate the displacements amplitude in inches, and the vertical coordinates, the explosive weight in pounds. The top curve is that of the U. S. Bureau of Mines for instantaneous detonation. Its curvature conforms to the two-thirds power of the explosive weight as provided in the weight-for-distance formula; hence the vibratory effects increase in proportion to an increase in the explosive charge. If the other curves shown below are temporarily disregarded, it may be considered that the entire area below this top curve represents both useful and waste energy. As mentioned previously, when millisecond delay detonation was first investigated it was found that in general the U. S. Bureau of Mines curve could be decreased by about 50 pct, or to the position of the middle curve. At the outset it was assumed that this curve would likewise increase in some proportion to the explosive charge, as did the top curve, that is, the curve would indicate a continuous upswing. As seismographic data accumulated this assumption was found to be erroneous in part. It was discovered that

Jan 1, 1957