Search Documents

By B. M. Larsen, T. E. Brower

INTRODUCTION THIS discussion is based on statistical manipulation and evaluation of operating data from several commercial blast furnaces which include rather wide variations in practice. We are concerned here mainly with the effect of manganese on sulphur elimination under operating conditions in commercial blast furnaces, but this effect can be outlined more clearly by including certain other variables such as silicon in iron and slag basicity, which are all in part interrelated. Real progress in understanding all of the smelting-zone reactions in this process requires more laboratory studies of slagmetal melts similar to those in the blast furnace, with careful control of oxygen pressure. Such experimental work is very difficult, however, and in the meantime, with the present scarcity of more fundamental data, such statistical trends and correlations as can be obtained from commercial furnace operating records may help in choosing laboratory test conditions as well as adding to our knowledge of operating procedures. We do not know just why the furnace data are apparently so irregular that statistical treatment of large numbers is needed to obtain accurate trends. It is .partly caused, no doubt, by the many simultaneous variables present, but there are perhaps also such factors as: (I) the continual swings up and down so characteristic of the process; (2) difficulty of accurate sampling of co-existing phases, as well as (3) the presence of both equilibrium and rate factors as a result of the fast driving of the process, In desulphurization, for example, the flow of thin layers of slag and metal over solid coke surfaces, plus the contact between droplets of iron falling through the slag layer in the hearth, would lead one to expect a close approach to equilibrium, On the other hand, most of the critical part of sulphur removal may occur in a short time and distance below the tuyeres with perhaps an accompanying decrease in oxygen pressure and the concurrent reduction of much of the silicon and manganese, so its degree of approach to equilibrium may be quite variable. PROBABLE CHEMISTRY OF DESULPHURIZATION Since there is little evidence that sulphur atoms in the iron solution are associated to any appreciable extent in molecules such as MnS, the transfer from slag to metal and back again can be written:* [(FeS) -, [FeS],[I] hence the following reactions seem most probable in the slag phase, (FeS) + (CaO) = (CaS) + (FeO), [2] and, (FeS) + (MnO) ;:2 (MnS) + (FeO). [31]

Jan 1, 1948

By Karl L. Konnerth

THE rapidly increasing use of machinery for the mining of coal and operations incidental thereto has materially changed conditions from a safety standpoint. A few of the coal-producing states have recognized the need for specialized electrical equipment for use in mines and have introduced certain requirements in their State safety regulations, notably Pennsylvania. This paper discusses the principal problems involved in maintenance of such equipment. PERMISSIBLE: EQUIPMENT "Permissible" electrical equipment is equipment that has met certain prescribed standards for use in mines where hazardous conditions may occur and has been recommended by the U. S. Bureau of Mines. Such machinery is available on the market for most coal-mining operations--for instance, coal cutting, transportation, drilling, loading, working-place illumination, shot-firing and pumping. A notable exception is the trolley-reel gathering locomotive which, although its parts may be explosion-tested by the Bureau, has not been approved as permissible for the following reasons: I. The trailing cable is subjected to more severe service than on other equipment. 2. State regulations do not require that a working place be examined for methane before a locomotive enters it. 3. Even with two-conductor cable, imperfect or inadequate bonding may cause the emission of sparks at the wheels of the locomotive and at rail joints. 4. As the locomotive is equipped with a trolley pole, and as the trolley wire may be installed and used in unsafe territory in spite of rigid State regulations, a trolley-reel gathering locomotive is always a potential hazard. MAINTENANCE The proper procedure for maintenance of permissible equipment may be divided into three parts: (I) inspection, (2) actual maintenance and (3) changes or improvements to existing machines. To secure the fullest benefits through the use of permissible equipment it is necessary that all men involved understand the principles underlying the safety features of this equipment and realize the significance of defects, so that neglect and indifference in the maintenance thereof may be eliminated. Inspection From the standpoint of safety it is desirable no doubt to make a suitable inspection of permissible electrical equipment once a week, but the opening of every enclosed compartment at each inspection may do more harm than good. The openings to such compartments are closed with various types of covers very accurately machined, often made of the softer alloys to reduce weight, and fastened with a multitude of bolts, screws, washers, and other small parts. Frequent handling of these covers may cause sufficient damage to defeat their original purpose and intent.

Jan 1, 1941

By J. Mote, P. Ward Flynn, J. E. Dorn

The effect of strain and strain rate on the critical resolved shear stress for prismatic slip in specially oriented single magnesium crystals was determined over a range of temperatures in an effort to identify the thermally activated strain-rate controlling dislocation process. Below about 450°K prismatic slip was preceded by twinning and fracturing. Above 450°K extensive prismatic slip was obtained followed by fracturing. Neither the Peierls&apos; mechanism nor the dislocation intersection mechanism can account for the observations. The data, however, are in good agreement with the dictates of Friedel&apos;s theory for cross slip to the prismatic plane. PREVIOUS investigations on single and polycrys-talline magnesium have resulted in the identification of the mechanisms of plastic deformation summarized in Table I. The-only well-confirmed mechanisms are {0001}, (1010}, (1011) slip plus (1012) twinning. The other twinning modes were only tentatively established and additional investigations are required to further confirm their operation. As noted in Table I, slip in this hexagonal close-packed metal invariably occurs in the direction of greatest atomic density, revealing that the Burger&apos;s vector for-active slip dislocations is always given by b = a/3<1210>. Slip is easily induced on the basal plane, and recent investigations have shown that the strain-rate controlling mechanism at low temperatures is the thermally activated intersection of the glide dislocations with dislocations threading the basal plane. In contrast, very little is known about prismatic slip. It has been reported to be active at points of stress concentration in polycrystals below

Jan 1, 1962

SIDNEY ROLLE, Chrome, N. J.-I should like to ask if Mr. Bach does not think it rather harmful to let the amen depend entirely on the company, whether it would not be a good plan to let the men aid a little in the support of these organizations? Also whether he has had any experience with utilizing the Y. M. C. A. in this connection. E. E. BACH, Ellsworth, Pa.-That question is always raised whenever there is discussion upon this subject. So far as we are concerned that would not help a bit; our people do not have that feeling, because .we have a company which these men recognize has a corps of very sympathetic officials in every way. I remember the assistant general manager lived out in one of these mining towns for a while. His difficulty was that every man, no matter what, who or where he was, if he had, or thought lie had, a, complaint, had the right of way to his office, and didn&apos;t have to stop at all. That is the spirit that predominates all through it. This is also the spirit of the mine foremen, two of whom were trained in our own night school, and it is the spirit of the fire boss and the general spirit of the people. They do not feel that we are trying to feed them with a spoon. As to the Y. M. C. A., we feel that it would be impracticable for us. R H. VAIL, New York, N. Y.-It would be very interesting if Mr. Bach would tell a little more about the control of the dispensing of intoxicants. There are many communities where the state intends to do that but does not succeed very well, and as Mr. Bach has spoken of the speakeasies on the environment of these towns, it would he well to know more about the problem of eliminating those.

Jan 4, 1918

By Paul Munoz

TRINIDAD, which has never been. seriously consid-ered as a large oil producer, has recently taken a new lease on its oil life through active development work being carried on by a newly organized American company that has been conspicuously successful in the short time in which it has operated on the island. From an oil operator&apos;s point of view Trinidad pos-sesses numerous natural advantages which are not found in any other oil producing country. The climate, while tropical, is healthy. The nights are always cool. Deep-water shipping ports in protected waters are available within short pipe-line distance from the pro-ducing fields. The distance from Trinidad to the At-lantic seaboard of the United States is less than from the Gulf Coast or from Mexico. The labor supply is abundant and can be had at reasonable rates. The island enjoys a good, stable government under British rule and is traversed by a net-work of excellent govern-ment roads. From a production standpoint the fields being de-veloped by Trinidad Oil Fields, Inc., the company re-ferred to above, present interesting problems which are being successfully solved. The oil sands are extremely fine; some of them having over 50 per cent passing 100- mesh screen and, with the exception of the Palo Seco field, the sands are loose, with shale-breaks and shale capping and with rock pressures running up to 600 lb. per square inch. Rotary drilling is universal, as the formations encountered are soft Tertiary shales, clays, sandy shales and sands, with occasional sandstone and lime shells, which are easily drilled with the rotary. As high as 600 ft. of hole in 24 hr. has been made in some of this company&apos;s wells. Production is at present obtained at depths ranging from 500 to 2500 ft. but further development will probably result in deeper pro-duction being obtained. The oil being produced ranges from 21 deg. to 37 deg. Bé gravity and is all asphaltic base oil.

Jan 7, 1927

By Adrian C. Dorenfeld, John T. Oleksy

Fuel problems of two lesser developed countries (LDC &apos;s) are presented. In particular, the paper reviews cement technology and the fuel-intensive cement industries of the Philippines and South Korea. Based on current financial and cost data, analyses are presented of the proposed substitution of high-sulfur and slow-sulfur American coal in place of fuel oil. The analyses show that economic substitution of coal for oil is not only based on relative prices for coal and oil, as expected, but also to be an inverse function of degree of intensity of energy use, and a direct function of financial incentives such as accelerated depreciation, taxes on the savings made by the use of coal, and cost of capital.

Jan 4, 1979

By Owen Rice

CHANGES in coke hardness affect the working of the blast furnace, for soft coke is an obstacle to proper furnace operation. Soft coke is due to a low hydrogen-oxygen ratio in the coal charged; increasing this ratio increases the hardness of the coke. The best means of determining the hardness of coke is the combined tumbler and ball-mill. Soft coke is a great hindrance to proper blast-furnace operation and changes in coke hardness affect the working of the furnace. The best method of determining the hardness of coke is by using a combination tumbler-ball-mill. Soft coke is due to a low hydrogen-oxygen ratio in the coal charged. An increase of this ratio improves the hardness of the resulting coke. WHAT IS GOOD COKE? It is not always appreciated that the correct answer may be such a reliable forecast to the physical condition of the blast furnace, and incidentally its entire operation, that among the ordinary variations in other raw materials and also in operating conditions, it assumes a position of primary significance. Inasmuch as coke forms two-thirds of the total bulk of material charged, this assertion will not seem exaggerated, and in the subsequent discussion its applicability will be presented. Coke is the ideal blast-furnace fuel because it is strong and hard enough to resist the crushing and grinding effects of the furnace burden, and its porosity allows the ready passage of gas upward through the charge, and rapid combustion before the tuyeres. Coke deprived of its strength and with a cell structure physically frail and chemically susceptible to solution by carbon dioxide, has its chief asset eliminated. When the melting zones are approached the fluid cinder trickling toward the hearth will envelope the small pieces of coke and form a sticky mass that will retard the free passage of gas. Blast pressure will then rise, driving

Jan 1, 1921

By H. O. Hofman

(Canal Zone Meeting, November, 1910.) I. INTRODUCTION. IN a previous paper,1 The Behavior of Calcium Sulphate at Elevated Temperatures with Some Fluxes, we published the results of our investigation, into the behavior of calcium sul-phate in air; that, is, under oxidizing conditions. The results as a whole hold good for a neutral atmosphere, or one which has no chemical effect upon calcium sulphate. The present paper deals with the behavior of calcium sulphate under reducing conditions, the reducing-agents employed being carbon monoxide and carbon, and the changes the calcium sulphide formed undergoes when it is subjected to an oxidizing-roast. Technical literature deals very sparingly with the subject. The information furnished by the recent leading chemical manuals is general. Thus Dammer,2 Moissan,3 and Abbegg,4 quote Berthier as having reduced, in 1823, calcium sulphate with carbon, and Stammer as having done the same in 1851 with carbon monoxide; Gmelin Kraut 5 add Leplay and Laurent (1848) as third investigators. Metallurgical authorities confine their statements to the known fact of reduction by carbon. II. PREPARATION OF RAW MATERIALS. 1. Calcium Sulphate.-This salt was prepared in the same manner as described in our previous paper,6 and was found to be chemically pure. * Professor of Metallurgy, Massachusetts Institute of Technology. + Metallurgical Instructor, Imperial Technological Institute. 1 Trans, xxxix., 628 to 653 (1909). 2 Handbuch der anorganischen. Chemie, vol. ii., part 2, p. 309 (1894). 3 Traité de Chimic Minérale, 1904, vol. iii., p. 543. 4 Handbuch der anorganischen Chemie, vol. ii., part ii., p. 116 (1905). 5 Handbuch der anorganischen Chemie, vol. ii., part 2, p. 233 (1909). 6 Trans., xxxix., 630 (1909).

Nov 1, 1910

By PAUL P. ZElGLER

Rapid growth of the aluminum industry continued through 1948 with an acute shortage of the metal in all forms marking the year. Estimates based on shipments made during the first nine months indicate that, in 1948, the industry shipped more than two billion pounds of aluminum products or roughly four times the amount shipped in the greatest peacetime year prior to the war. The rapid expansion of the aluminum industry is particularly reflected in the production of sheet. Last year, the industry as a whole shipped an estimated 40 per cent more sheet than was produced in the peak war year of 1944.

Jan 1, 1949

By E. P. Fleming

COMPARED to the situation abroad, the domestic industry continues to lag both as regards the production and consumption of newly mined lead. During 1938 we produced and consumed slightly over 20 per cent of the world output, whereas ten years ago the figure was nearly double this pro- portion. Labor difficulties and absence of demand were chiefly responsible for the general inactivity. In the foreign field, in spite of low metal prices, production and consumption of lead equaled or exceeded all previous records. Practically all the large companies, with the exception of those in Spain, increased operations, though it should be noted that the foreign lead mines have higher-grade ores than domestic mines. In view of the rapid expansion of the foreign industry, it is natural to expect greater progress abroad, particularly in process metallurgy.

Jan 1, 1939

By John T. Galey

Oil and gas development in southern Pennsylvania during 1937 was marked by considerably increased activity in deep-sand drilling. Nine tests were completed to the Oriskany sand: one in Independence and three in South Beaver townships, Beaver County; one in Franklin township, Butler County, two in Slippery Rock township, Lawrence County; one in Mt. Pleasant township, Washington County, which is drilling below the Oriskany, and one in Fairfield township, Westmoreland County. Two of these wells, both of which were in the Blackhawk pool, South Beaver township, Beaver County, obtained wet gas with open-flow volumes of 1.5 million cu. ft. and 3.1 million cu. ft. and closed-in pressures of 1900 Ib. The remaining seven were unproductive in the Oriskany. Two wells, one in Hampton township, Allegheny County, which is shut down temporarily as a result of a gas pocket, and one in South Beaver township, Beaver County, are drilling to the Oriskany. One deep test on the Chestnut Ridge anticline, South Union township, Fayette County, was completed after considerable difficulty as a dry gas well in the Onondaga limestone. At this locality the cherty limestone is porous as a result of fracturing. Three additional tests are under way in the area, one in South Union township, a second in North Union township, and a third in Wharton township. Completions Oil.—Despite price cuts and production curtailment of Pennsylvania Grade crude, caused largely by a decreasing demand from export markets, operation in the shallow oil areas continued at a fairly high rate and a number of good wells were completed. Some of these were new wells in close proximity to old production and others were old wells drilled into deeper pays. One new well of a number of producers drilled to the Nineveh Thirty-foot sand in the Harvey pool, Center township, Green County, made 400 bbl. of oil and 500 million cu ft. of gas the first 24 hr. The Chambers dam pool of Amwell and South Franklin townships, Washington County, yielded a number of Fifth Sand producers with initials as high as 200 bbl. Several wells in the old Mars-Butler field

Jan 1, 1938

By J. C. Bayles

THE most unsatisfactory occurrences in the experience of a manufacturer are those from which he suffers damage and learns nothing useful. That there are such incidents, and that they occur with annoying frequency, is unfortunately true. An accident which can be understood and explained always carries some consolation with it. However bad the copnsequencee, one finds comfort in reflecting that they might have been worse, and that the knowledge of how to avert a more disastrous calamity from the same cause is worth what it cost. But when an accident occurs, which remains unexplained after anxious days of investigation and sleepless nights of reflection, and which is as liable to occur twice or twenty times, as once, very little satisfaction of any kind can be extracted from it by the most philosophical victim. Three such incidents have come under my notice in one establishment. Fortunately none of them were attended with very serious consequences, as no one was hurt, and the damage to property was slight; but in each instance, loss of life and great destruction were escaped by so narrow a margin as to make them extremely disquieting. I have recorded them in the hope, that from the experience of others maybe gained what my own careful investigations have failed to reach-—satisfactory explanations. The first of these curious occurrences was the bunting of a 16-inch pipe carrying air under a compression of about 1 pound. The pipe was made of light galvanized iron with soldered seams. Into it a rotary fan-blower delivered air, and from it smaller pipes were carried to the furnaces. The blower was run continuously. Neither the main pipe nor its branches had any connection with the gas conduits. Both air- and gas-pipes delivered into the furnaces; but although the gas was under much higher compression than the air, there appeared to be no good reason why, having free escape in case of leakage, it should ever make its way back into the air-pipe. One warm afternoon in June the main air-pipe exploded with great vio-

Jan 1, 1891

By Lyall Zickrick

NUMEROUS brands of virgin pig lead are used in the manufacture of lead and lead-alloy cable sheath for commercial cables. In changing from one brand of pig lead to another a readjustment of press operating conditions is nearly always necessary. This is due largely to different flow characteristics, and some brands extrude at a much lower pressure than others; for example, copper-bearing lead requires much more pressure than a low-bismuth lead under the same operating conditions. With the modern type of lead press the extrusion practice in general differs very little. Molten lead at a temperature of 375° to 400° C. (710° to 750° F.) is cast in a water-cooled cylinder and allowed to cool or solidify into a slug for six to nine minutes. . This slug is forced into the die block and around the core tube through which the cable runs. The die block is held at an optimum temperature by means of gas flames, usually 175° to 225° C. (350° to 4.35° F.). Measurements of the tem¬perature of the cable sheath taken at the time of extrusion have covered a range of 190° to 225° C. (375° to 435° F.). According to Tammann, the rate of extrusion for a metal under constant pressure through a simple orifice is almost doubled for each 10° C. rise in temperature. Because of the irregularity of die-block construction, such a great increase is not obtained in lead-cable extrusion practice. To obtain more" definite information about the effect of small per¬centages of metals usually present as impurities in virgin pig lead, a series of compression tests were made covering several different brands of lead and various alloys. Since the usual temperature of the sheath is approxi¬mately 200.° C. as it emerges from the die block, these compression tests were all performed at 200° C. Five different brands of virgin pig lead were selected, as follows: Brand A: A desilverized western lead of very high purity. This lead contains neither copper nor bismuth. Brand B: A bismuth-free southeastern Missouri lead, usually con¬taining 0.05 to 0.08 per cent copper. Brand C: A copper-free mid-western desilverized lead of very good grade, usually containing around 0.06 to 0.10 per cent bismuth.

Jan 1, 1932

By F. X. Tartaron

F. C. Bond (Consulting Engineer, Processing Machinery Dept., Allis-Chalmers Manufacturing Co., Milwaukee, Wis.) — Papers such as this one which deal in a lucid manner with the obscure fundamentals of comminution theory are always welcome. The author has attempted to bring together several diverse theories and handles them interestingly. However, some of the ideas expressed and conclusions drawn require critical reviewing, for which amenities alone will not suffice. The author points out that the theoretical energy required to break across crystal lattices is of the order of 1000 times the actual energy required to crush or grind, and that this energy in turn is perhaps 1000 times the measured surface energy of the new surface area produced. The energy required to grind commercially is controlled by flaws and dislocations, rather than by the inner strength of the lattice structure. The measured surface energy is only a slight residue left after the face atoms are adjusted to their new environment. The dislocations in the crystal lattice structure, with a spacing of about O.l,u, or

Jan 1, 1962

By MORTON WEBB

Discussion of the paper of Max Boehmer, presented at the Pittsburg meeting, March, 1910, and printed in Bulletin. No. 38, February, 1910, pp. 119 to 122. W. MORTON WEBB, Germiston, Transvaal, South Africa (communication to the Secretary*):-The experience of Mr. Boehmer in the Leadville district and his reputation as an engineer assure the interest of anything he may write on the ore-bodies of that district; and all engineers who have operated in Leadville will agree that the theory of the origin of the Leadville deposits, as given by Mr. Emmons in his famous monograph, does not adequately explain the genesis of all the deposits. The solution of the problem does not, however, appear to be quite so simple as Mr. Boehmer would make it; and the advance pamphlet issued by the U. S. Geological Survey, pending the completion of the main report, shows that there is still much ground for controversy. No doubt the later eruptives had a greater influence on the deposition of the ore-bodies than was thought at the time of the first investigation by the Survey; but it has always appeared to me that the influence exerted by these dikes was more in the nature of a physical than a chemical one. The weight of evidence in recent years is mostly in the direction of ascension rather than lateral secretion; and one of the strongest evidences is the fact that most of the ore-bodies lie under one of the comparatively impervious layers which help to make up the structure of these hills. On Iron hill I have found a very persistent white porphyry sheet, split off from the overlying porphyry and lying from 30 to 60 ft. below the main white porphyry and blue limestone contact. This sheet varies from a few to 50 ft. in thickness, and where found adds another "contact" to that region ; some of the largest ore-bodies on Iron hill lie immediately under this sheet. Above this is the main white porphyry and * Received Mar. 3, 1910.

Feb 1, 1911

By John E. Murphy, Ernest L. Ohle

Hematite-magnetite ore bodies at Iron Mountain, Missouri, have produced nearly 9 million tons of iron ore concentrates since 1844. The ore minerals occur principally as open-space filling in fractured and brecciated andesite porphyry with very minor replacement of the wall rocks. The enclosing rocks are Precambrian in age and consist of a series of dacite, rhyolite, and andesite flows aggregating about 2000 feet in thickness. All of the ore is in andesite and the mineralization is Precambrian in age. The shape of the ore bodies, the breccia character of the ore, and the gangue mineralogy are believed to be unique. One of the two main ore bodies is crudely dome-shaped with a tendency for development of concentric mineralized shells; the other is an elongated lense in plan but hook-shaped in cross section. Both have strong linear elements striking northeast, east-west, or northwest. Various modes of origin for the structures and for the tension breccias have been suggested, but none is completely satisfactory. Hematite is the main ore mineral; magnetite is subordinate. Important gangue minerals are andradite, quartz, calcite, actinolite, apatite, epidote, and chlorite. Although some evidence favors injection of an iron-rich melt, other evidence suggests ore formation by a high temperature, water-rich solution.

Jan 1, 1968

By C Gunther

The purpose of this book is to present the practical side of economic geology concisely and in convenient form; established facts and the applications of accepted views are emphasized; theoretical discussions and questions of genesis are avoided. Coal, iron, and placer deposits are omitted; they are subjects of specialized study that are fully and concisely treated in other works. The reader is assumed to possess a knowledge of mineralogy, petrography, and elementary geology. The arrangement adopted is based on Kemp&apos;s theory of magmatic waters, on Lindgren&apos;s conclusions on hydrothermal and secondary alterations, and on the theories of secondary enrichment enunciated by Emmons and Weed. No general classification of ore deposits is attempted, nor is any attempt made to fill by hypothesis the wide gaps, nor to explain the apparent contradictions that rank economic geology among the most inexact of sciences. The present knowledge of the subject is too incomplete to warrant such broad generalizations. The demand for good properties generally exceeds the supply. While mines of the first rank will undoubtedly be discovered from time to time, it is probably true that a great proportion of deposits having outcrops of commercial grade or of evident promise have been recognized and explored. A review of mining conditions over long periods shows that the rich discoveries belong to pioneer days, and that as time goes on the more important developments are the result of lower working costs, improved metallurgical processes, and an increasing knowledge of economic geology. As engineers in search of developed mines no longer expect to find properties having positive ore of greater net value than the price asked, so those in search of prospects should not expect to

Jan 1, 1932

By Kyle Wightman

INTRODUCTION CRA Limited is the largest mining group in Australia by value of sales and the second largest company in Australia in terms of share market capitalisation. In the past 25 years, CRA, its predecessors and affiliates have been involved in a number of mining and further processing developments in Australia and elsewhere. Many of these have been financed using project financing techniques. These include Comalco&apos;s development of the Weipa bauxite deposits in Northern Queensland in the late 1950&apos;s, the Hamersley iron ore developments in the Pilbara region of Western Australia in the mid 1960&apos;s, the Queensland Alumina Limited alumina refinery in Gladstone, Queensland, at about the same time, and the Bougainville copper project in 1969/70. In the past three years CRA has again utilised project financing techniques to fund its Tarong steaming coal project in Queensland, the Blair Athol steaming coal project also in that State and CRA&apos;s interest in the Argyle diamond project in the Kimberley region of Western Austrlia. PROJECT FINANCE DEFINED Nevitt Definition Nevitt&apos;s is the most frequently quoted definition - "A financing of a particular economic unit in which a lender is satisfied to look initially to the cash flows and earnings of the economic unit as the source of funds from which a loan will be repaid and to the assets of the economic unit as collateral for the loan." Risk and Balance Sheet Treatment It is important to focus in more detail on two aspects of project financing, risk and balance sheet treatment. The assessment of the various elements of risk in a project and the sharing of that risk between sponsors and lenders is the most critical feature. At one end of the spectrum is full absorption of risk by the sponsor(s). This can be described as "on risk" or "on credit" or "full recourse" to the sponsor(s) and is effectively a corporate financing. At the other end of the spectrum the lenders absorb the whole risk in a non-recourse financing which is "off risk" or "off credit" for the sponsor. The other aspect is the sponsor&apos;s balance sheet treatment. If the balance sheet of the economic unit undertaking the project and the financing need not be consolidated into the balance sheet of the sponsor (because ownership does not exceed 50%) then the financing may be described as off-¬balance sheet. If consolidation is required then the financing is described as on-balance sheet. Most project financings involve some recourse to the sponsor, i.e. they are limited recourse. Very few are non-recourse or off credit to the sponsor. Limited recourse financings may be on-balance sheet although many may also be off-balance sheet insofar as consolidation is concerned. However, sponsor support may very well be a contingent liability to the sponsor and require disclosure by way of note to the balance sheet should consolidation not be required. CORPORATE FINANCE CONTRASTED A financing which is on credit or full recourse to the sponsor, whether it is directly borrowed or guaranteed by that sponsor, is a corporate financing. Lenders will tend to base their credit assessment on a historical assessment of the sponsor&apos;s activities and its financial results rather than an assessment of the project or a detailed assessment of the future activities and prospects of the sponsor. PROJECT FINANCE - A BORROWER&apos;S PERCEPTION Although CRA could choose to arrange all finance on a corporate basis (except perhaps for the very largest projects or acquisitions), project financing techniques provide a number of specific advantages which CRA has noted and which should be carefully considered by a project sponsor. Advantages

Jan 1, 1985

By J. Orkiszewski

A method i.s presented which can accurately predict, with a precision of about 10 percent, two-phase pressure drops in flowing and gas-lift production wells over a wide range of well conditions. The method is an extension of the work done by Grifith and Wallis and was found to be superior to five other published methods. The precision of the method was verified when its predicted values were compared against 148 measured pressure drops. The unique features of this method over most others are that liquid holdup is derived from observed physical phenomena, the pressure gradient is related to the geometrical distribution of the liquid and gas phase (flow regimes), and the method provides a good analogy of what happens inside the pipe. It takes less than a second to obtain a prediction on the IBM 7044 computer. INTRODUCTION The problem of accurately predicting pressure drops in flowing or gas-lift wells has given rise to many specialized solutions for limited conditions, but not to any generally accepted one for broad conditions. The reason for these many solutions is that the two-phase flow is complex and difficult to analyze even for the limited conditions studied. Under some conditions, the gas moves at a much higher velocity than the liquid. As a result, the down-hole flowing density of the gas-liquid mixture is greater than the corresponding density, corrected for down-hole temperature and pressure, that would be calculated from the produced gas-liquid ratio. Also, the liquid&apos;s velocity along the pipe wall can vary appreciably over a short distance and result in a variable friction loss. Under other conditions, the liquid is almost completely entrained in the gas and has very little effect on the wall friction loss. The difference in velocity and the geometry of the two phases strongly influence pressure drop. These factors provide the basis for categorizing two-phase flow. The generally accepted categories (flow regimes) of two-phase flow are bubble, slug, (slug-annular) transition and annular-mist They are ideally depicted in Fig. 1 and briefly described as follows. RUBBLE FLOW (FIG. 1A) The pipe is almost completely filled with the liquid and the free-gas phase is small. The gas is present as small bubbles, randomly distributed, whose diameters also vary randomly. The bubbles move at different velocities depending upon their respective diameters. The liquid moves up the pipe at a fairly uniform velocity and, except for its density, the gas phase has little effect on the pressure gradient. SLUG FLOW (FIG. 1R) In this regime, the gas phase is more pronounced. Although the liquid phase is still continuous, the gas bubbler coalesce and form stable bubbles of approximately the rame size and shape which are nearly the diameter of the pipe. They are separated by slugs of liquid. The bubble velocity is greater than that of the liquid and can be predicted in relation to the velocity of the liquid slug." There is a film of liquid around the gas bubble. The liquid velocity is not constant—whereas the liquid slug always moves upward (in the direction of bulk flow); the liquid in the film may move upward but possibly at a lower velocity, or it may move downward. These varying liquid velocities will result not only in varying wall friction losses, but also in a "liquid holdup" which will influence flowing density. At higher flow velocities, liquid can even be entrained in the gas bubbles. Both the gas and liquid phases have significant effects on the pressure gradient. TRANSITION FLOW (FIG. 1C) The change from a continuous liquid phase to a continuous gas phase occurs in this region. The liquid slug between the bubbles virtually disappears, and a significant amount of liquid becomes entrained in the gas phase. Although the effects of the liquid are significant, the gas phase is more predominant.

By E. W. Davis

THE mysterious Lake Erie price for iron ore, established each spring, determines the maximum price that will be paid during the following season for ore of Mesabi Non-Bessemer base grade. This price is impor-tant to the ore producers, but since most of the ore in the Lake Superior district is owned or controlled by consuming inter-ests, the really important question to them is not the price of ore but how much it will cost them to mine and transport their season&apos;s requirements to their furnace plants. However, a few million tons are actually sold each year, and considerable quantities are traded for mixing purposes, and the negotiations for these sales and trades usually begin with some reference to the Lake Erie price. There is no difficulty with the Lake Erie price itself or with the manner in which it is established, but the system prescribed for determining the values of ores that are not exactly base grade is incomplete. The Lake Erie price takes into consideration only the iron and phosphorus contained in the ore, but when the ore producer is negotiating a sale or trade, he is confronted by the fact that his ore must be studied and the price adjusted, not only on the basis of the iron and phosphorus analyses, as specified by the Lake Erie price, but also on the basis of silica, alumina, man-ganese, structure, etc. The vague and unsatisfactory methods used in making these adjustments bear some relation to the manner in which the ore is supposed to act in the blast furnace. The ore producer may not understand all of the idiosyncrasies of the blast furnace, but if the smelting-plant operators have a system more accu-rate than the Lake Erie price method for determining the relative values of different ores, why not pass this information on to the ore producers, so that they can make use of it and perhaps modify their practice in such a manner as to benefit both them-selves and their customers? There is a lack of understanding and appreciation between these two groups that may, to some extent, be unavoidable, but in the interests of efficiency and conservation rules that are more accurate and complete than the Lake Erie price method in use at the present time should be established for the guidance of the ore producers.

Jan 1, 1940