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The American Petroleum Institute, 250 Park Ave., New York, N. Y. Lacey Walker, Secretary. A complete price list of publications will be sent upon application. The American Petroleum Institute issues a variety of publications; in addition to the Daily Oil Digest ($25 per year) and a weekly Statistical Bulletin ($12.50 per year to nonmembers), a Quarterly is published ($4 per year to nonmembers). Books published by the Institute: American petroleum supply and demand, $3; A series of "Petroleum facts and figures" for each of the years 1928, 1929, 1930 and 1931, $2 for each copy; Function of natural gas in the production of oil, $1; Bibliography of organic sulphur compounds, $4; and "Oil" (Oil Industry Series in one volume), 50 cents per copy. Volumes of the first six annual Meeting Proceedings are out of print, but the Proceedings for the 7th annual meeting in 1926

Jan 1, 1933

By Thomas P. Bispham

INTRODUCTION From the lender's point of view, the greatest period of risk in a project financing occurs during the construction phase. Therefore, most projects are supported during this phase by completion guarantees supplied by some credit-worthy entity; for example, the project sponsors in the case of a joint venture, such as that of W.R. Grace, Hanna Mining, and Liberty Capital; or by a strong contract with a utility or foreign importer/investor, such as the way North American Coal Corporation has structured many of its transactions. THE PROJECT LOAN REQUEST A project financing is a more complex form of term loan than one using an ongoing corporation's balance sheet as a credit base and, therefore, a potential lender will subject the loan request to a more rigorous analysis. To support this effort, the financial institution will require a more detailed information memorandum to evaluate the credit and technical risks of a project - especially since much of the necessary information is not otherwise available. (See also Gibbs and Sroka paper above in this Chapter) A well-prepared information memorandum will impress prospective lenders with the planning ability and general competence of management. Also, the process of preparing the memorandum will help management understand the true extent of the opportunities and limitations of its venture. Appendix A outlines the topics which comprise a complete information memorandum for a loan request. Of some interest to those seeking to sell a currently-operating mining venture, a similar information memorandum should be prepared i.e., covering the same topics discussed here, for the investment banker to use with potential purchasers. For that purpose, though, one might not want to prepare quite as much detail as for a lender. Appendix B outlines the elements of a reserve evaluation and feasibility study, often called the "Bankable Document." Usually, these studies are prepared by independent engineering consultants for use by potential borrowers and sellers. (Potential purchasers will often contract for a similar study for their use in evaluating an acquisition.) ELEMENTS OF A LOAN INFORMATION MEMORANDUM 1. Outline: The information memorandum should begin with a one-page outline covering such topics as: a. The borrower's name, address, and phone number. b. Principal contact at the borrower. c. Amount of the proposed financing. d. Desired pricing and structure of the proposed financing. This should include a description of the amount and source of equity in the proposed financing. e. Use of the proceeds and timing. 2. Summary: The most important information contained in the memorandum should be summarized in two pages. Note - If the borrower is a recently-formed single-purpose company, then elements 3, 4, and 5 will apply to the guarantors of completion and to the project sponsors. 3. The Borrower: This section is a brief biography of the borrower including such topics as date and state of incorporation, founder(s), lines of business, etc. 4. Capitalization: The borrower's current debt and equity position, including leases and trade debt, with amounts, terms, names, and addresses enumerated. Equity owners, and percentage ownership, should be identified. 5. Historical Financial Statements: If available, a minimum of five year's worth of complete historical financial statements

Jan 1, 1985

Trans No. Place Date Vol. 1. Wilkes-Barre, Pa' May, '71 1 2. Bethlehem, Pa Aug., '71 1 3. Troy, N. Y Nov., '71.. 1 4. Philadelphia, Pa Feb., '72.. 1 5. New York, N. Y.' May, '72.. 1 8. Pittsburgh, Pa Oct., '72.. 1 7. Boston, Maas Feb., '73.. 1 8. Philadelphia, Pa." May, '73.. 2 9. Easton, Pa Oct., '73.. 2 10. New York, N. Y Feb.. '74.. 2 11. St. Louis, Mo.* May, '74.. 3 12. Hazleton, Pa Oct., '74.. 3 13. New Haven, Conn Feb., '75.. 3 14. Dover, N. J. ? May, '75.. 4 15. Cleveland, 0 Oct., '75.. 4 16. Washington, D. C Feb., '76.. 4 17. Philadelphia, Pa.} June, '76.. 5 18. Philadelphia, Pa Oct., '76.. 5 19. New York, N. Y Feb., '77.. 5 20. Wilkes-Barre, Pa. ? May, '77.. 8 21. Amenia, N. Y Oct., '77, . 6 22. Philadelphia, Pa Feb., '78:. 6 23. Chattanooga, Tenn.*...May, '78'.. 7 24. Lake George, N. Y Oct., '78.. 7 25. Baltimore, Md.* Feb., '79.. 7 26. Pittsburgh, Pa Mayo '79.. 8 27. Montreal, Canada Sept., '79., 8 28, New York, N. Y.? Feb., 'SO.. 8 29. Lake Superior, Mich. ..Aug., '80.. 9 30. Philadelphia, Pa.' Feb., '81.. 9 31. Staunton, Va May, '81..10 32. Harrisburg, Pa Oct., '81..10 33. Washington, D. C.? ....Feb., '82..10 34. Denver, Colo Aug., '82..11

Jan 1, 1928

By A. H. Shoemaker

THE shutdown of Homestake by Government order L-208, with its consequent disruption of a very stable and trained working force, coupled with postwar inflation and the coincidence that a mining depth had been reached that posed problems of ventilation, access to exploration areas, and choice of mining methods that would be applicable to zones of greater rock pressures made a very searching analysis of every phase of Homestake's operations a necessity. Any changes to be made had not only to meet the problems of deeper mining but also had to provide greater efficiency so that the mine might operate at a substantial profit until such time as a gold price adjustment might be forthcoming that would offset post-1945 inflation. Geology and Mining Situation The Homestake mine lies in the northern Black Hills in an area of Pre-Cambrian rocks exposed by the erosion of the paleozoic formations which covered the Black Hills. The Pre-Cambrian rocks in the vicinity of Lead comprise metamorphosed sediments with a total thickness of about 20,000 ft. The oldest formation, the Poorman, is ankeritic carbonate schist. The next oldest, the Homestake formation, host rock for all Homestake orebodies, is a siliceous iron-magnesium carbonate schist. The younger formations are dom-inantly argillaceous with some quartzites. Tertiary intrusive rocks cut all formations. The Pre-Cambrian rocks have undergone extreme isoclinal folding. Superimposed on this intricate folding are zones of shear folding which cross the isoclinal folds at small angles. The Homestake orebodies are pipelike replacements of the Pre-Cambrian Homestake formation where certain cross folds intersect some earlier isoclinal folds. These orebodies plunge flatly to the southeast at variable angles locally as steep as 45". The orebodies are replacement areas where numerous vein quartz of irregular shape have formed with surrounding zones of chlorite alterations containing disseminated sulfides and metallic gold. Where the numerous individual quartz veins with the sulfide and gold-bearing alteration zones are close together, large irregular orebodies with a roughly elliptical plan outline result. These ore zones may be more than 200 ft wide and 700 ft long in plan area. They have followed down the plunge of certain severely folded structures with great persistence. Two vertical operating shafts, the Ross and Yates, serve the mine, one with rope capacity to reach the 4850 level, the other to the 5000 level.

Jan 1, 1959

By A. W. Schlechten, Ernest J. Breton Jr.

Experiments on the separation of copper and zinc ions by selective action of ion exchange resins showed the carboxylic type to be more effective than the sulphonic resins. The latter demonstrated a greater capacity over a wider pH range. Data show the effectiveness of resins as a means of concentration. IN recent years the restrictions of stream pollution laws and the high price of metals have created an interest in ion exchange as a means for metal recovery. Some applications have proved successful. In Germany during World War 11, 17 tons of copper per day were recovered from rayon mill wastes by means of ion exchange resins;' and for some time in this country a large ion exchange unit has been in operation for the recovery of copper from rayon waste water. The possibilities of applying ion exchange to the recovery of metals occurring in plating rinse water is particularly promising. In most of these applications only the metal being recovered occurs in the waste. The ion exchange resins act merely as a means of concentrating the metals to a point where they can be recirculated. It would be highly desirable to use ion exchange as a means of not only concentrating but also of separating metals. With the exception of the impressive separations accomplished in connection with the atomic energy program, very little has been done on metal separations.' Therefore, an investigation was undertaken at the Missouri School of Mines and Metallurgy to determine if either of the two main types of ion exchange resins could be used to separate metal ions in solution. The selective removal of copper ions from a mixture of copper and zinc on carboxylic and sulphonic-type resins was investigated as a function of flow rate, pH, copper-zinc ratio, and concentration. It was shown that zinc can be separated from copper and that very large ratios of concentration can be obtained using ion exchange resins. Since ion exchange is relatively new to the field of metallurgy, a brief review of the subject will be included. Theory of Ion Exchange A comprehensive theory for ion exchange has not been developed as yet, but the mechanisms are analogous to metathetical reactions: R Na + Cu++ *=? K(SO3)2 Cu + 2Na+ R is the designation for the ion exchange resin. If a copper solution is passed over a resin bed in the sodium form, two ions of sodium will be released for every ion of copper removed. For the most part this reaction follows the laws of mass action and of electrical neutrality. Consequently, if an excess of sodium ions is passed over a bed containing copper, the reactions will be reversed, and the resin will be regenerated to its original form. A few empirical rules governing the exchange reaction have been set forth: 1—In general ions with a high valence will replace ions with a lower valence. 2—Ions having higher activity coefficients have a higher replacement potential. 3—In a series of mono-valent ions, those with the smallest radii of hydra-tion will tend to replace those having larger radii of hydration. 4—Where ions are similar in most respects, those with the higher atomic weight sometimes will take precedence. This last rule is not as definite as some of the others. These rules apply to rather dilute solutions at moderate temperatures and assume all ions to be present in about equal concentrations. Higher concentrations and temperatures may in some cases reverse the normal exchange reactions. Ion exchange materials are unique in that their efficiency increases as the concentration of the solution decreases. For many exchangers, most efficient operation is obtained at concentrations in the order of one thousandths of a percent. Most applications, though, are made in solutions containing considerably higher concentrations than this. Coste9 as shown that ion exchange resins will remove aluminum and iron effectively' from solutions of up to 10 pct chromic acid. Ion Exchange Resins Ion exchange resins are insoluble, porous, resinous structures to which active groups have been attached. Active groups such as (—SO,,)- and (COO)- pick up cations; hence structures saturated with groups such as these are called cation exchangers. Structures saturated with groups such as (—NH,)' which pick up anions, are referred to as anion exchangers. The resinous structure of necessity is resistant to strong acids, bases, oxidizing, and reducing agents, and most of the common organic solvents. An idea of the stability can be gaged from the fact that resins last for many years under constant use without detectable chemical or physical breakdown. The ion exchange reaction is not confined to the surface of these synthetic resins. Its porous structure permits active groups in the center of a particle as well as those on the surface to remove ions. A high capacity resin such as Amberlite IR-120 will remove up to 3.3 lb Cu per cu ft of resin. In this investigation several approaches to the problem of separating copper from zinc by ion exchange were considered. First, if a reagent could be found which would complex one of these metals and not the other, then by passing this reagent through a bed of exchanger containing copper and zinc, the

Jan 1, 1952

By F. W. Jr. Sperr

THE byproduct coke oven is the most important artificial source of fuels for metals melting. Its products are solid, liquid, and gaseous in form. The amount of coke and primary byproducts obtained per ton of coal varies with the nature of the coal. The following represents the results obtained in many plants: Metallurgical coke (over 3/4 in.) 69 per cent. of coal Domestic coke (1/2 to 3/4 in.) 2 per cent. of coal Breeze (under 1/2 in.) 4 per cent. of coal Surplus gas, cubic feet per net ton 6600 Gas for heating ovens, cubic feet per net ton 4400 Tar, gallons per net ton 9 Ammonium sulfate, pounds per net ton 25 Benzols, gallons per net ton 4 All of these products, except ammonium sulfate, have important fuel value. Part or all of the metallurgical coke may be crushed or screened to furnish additional domestic coke. If producer gas is used, there will be a surplus of 11,000 cu. ft. of coke-oven gas per net ton of coal. The use of coke in the metallurgical industries has been retarded by the mental attitude of writers who disregard the dependence of coke quality on the conditions of its manufacture. Terms like "byproduct coke,"' "beehive coke," "48-hour coke," and "72-hour coke" are only generally descriptive and tell nothing of the coke quality. For example, one writer1 stated that in brass-foundry practice, Connellsville coke is considered much superior to byproduct coke on account of the high sulfur content of the latter. Another2 says, "At equal prices for hard Connellsville coke and for byproduct coke at the foundry door, the hard coke is unquestionably cheaper. It will melt more metal per ton than the byproduct coke and requires less labor, as the byproduct coke is less dense and burns faster, thus requiring more frequent firing." A little study of the conditions under which coke is manufactured will show the error in mak-

Jan 10, 1920

By H. F. Yancey, M. R. Geer

The importance of the size composition of coal is reflected in the difference in price of the various sizes of the same coal and in the large number of primary sizes and mixtures of sizes produced by the modern preparation plant to meet the demands of a market that in late years has grown increasingly conscious of coal size. The importance of size in the industrial and domestic uses of coal has its counterpart in the role played by size composition in the laboratory examination of coal. Investigation of many of the physical properties of coal in their relation to its uses requires an evaluation of size composition. In fact, the Standards on Coal and Coke issued by the American Socaiety for Testing Materials in 1936 contains 12 standard methods of testing that involve some use of size composition. The screen analysis is, of course, the standard method of determining size composition, whether the material is coarse run-of-mine coal or fine pulverized fuel. Custorriarily, the analysis is reported as the weight percentages retained on or passing each of a series of testing screens, the number of which may range from only two or three to as many as 20. When more than two or three sieves are used, which is usual, the number of weight percentages obtained is so great as to make the analysis difficult to comprehend. Direct comparison of analyses made 011 the same sieves is hard, and comparison of analyses covering the same range of sizes but made on different sieves is next to impossible. Consequently, a frequent purpose of sizing tests-—-correlation of size with properties and charactcristics related to size-—is rendered difficult. Less cumbersome means of expressing size composition have been attempted with various degrees of success. An average particle size, calculated by any of several formulas, is useful for some purposes, also the weight percentage retained on a single sieve finds some application as a

Jan 1, 1938

By M. R. Geer, H. F. Yancey

The importance of the size composition of coal is reflected in the difference in price of the various sizes of the same coal and in the large number of primary sizes and mixtures of sizes produced by the modern preparation plant to meet the demands of a market that in late years has grown increasingly conscious of coal size. The importance of size in the industrial and domestic uses of coal has its counterpart in the role played by size composition in the laboratory examination of coal. Investigation of many of the physical properties of coal in their relation to its uses requires an evaluation of size composition. In fact, the Standards on Coal and Coke issued by the American Socaiety for Testing Materials in 1936 contains 12 standard methods of testing that involve some use of size composition. The screen analysis is, of course, the standard method of determining size composition, whether the material is coarse run-of-mine coal or fine pulverized fuel. Custorriarily, the analysis is reported as the weight percentages retained on or passing each of a series of testing screens, the number of which may range from only two or three to as many as 20. When more than two or three sieves are used, which is usual, the number of weight percentages obtained is so great as to make the analysis difficult to comprehend. Direct comparison of analyses made 011 the same sieves is hard, and comparison of analyses covering the same range of sizes but made on different sieves is next to impossible. Consequently, a frequent purpose of sizing tests-—-correlation of size with properties and charactcristics related to size-—is rendered difficult. Less cumbersome means of expressing size composition have been attempted with various degrees of success. An average particle size, calculated by any of several formulas, is useful for some purposes, also the weight percentage retained on a single sieve finds some application as a

Jan 1, 1938

By H. F. Seifert

The classification and preparation of non-ferrous scrap mctals is a subject of interest to every individual and corporation that employs in its processes of manufacture non-ferrous metals and alloys and accurnulates in such manufacture scrap from these materials for disposition in the form of turnings, borings, short ends, punchings, clippings, grindings, washings, etc. All too frequently the disposition of such scrap is left to indivitluals who have no knowledge of the subject either from a metallurgical or a commercial standpoint, or both. Much money is thus lost whicli with a little more intelligent effort might be saved, and in this day of fierce competition and small profits such an opportunity cannot be ignored. The Mineral Resources of the United States for the year 1925, the latest issue available (Part 1, page 221), gives the secondary non-ferrous metals of certain classes recovered in the United States for the year 1924 to 1925 as shown in Table 1. The figures are tabulated simply to give the reader some idea of the scope of the secondary non-ferrous metal industry. Approximately 900,000 tons of an annual value of $244,000,000 were recovered in the year cited. In 1916 (again using thc Mineral Resources of the United States as authority) the tonnage reclaimed was approximately 632,000 tons and the value, because of the high prices for metals prevailing at that time, amounted to $265,000,000. It is not the purpose of this paper to discuss smelting and refining operations or the feasibility of an organization, primarily engaged in some other activity, conducting smelting and refining operations to convert its own non-ferrous scrap metals and alloys. The classification and preparation of these non-ferrous materials is a preliminary step, regardless of what subsequent operations the material may pass through or where these operations may be conducted. For that reason the subject can he readily discussed without any reference to subsequent activities. Space must be provided, with suitable handling facilities, scales and the necessary storage bins where the material may be accumulated. The scope of the activity, the nature of the industry and the tonnage handled will determine, in a large measure, what preparation, if any, it rrlay he desirable to give these scrap materials to put them in the best niarketable condition. By preparation is rneant largely what, for the want of a

By P. G. Mason

The upswing in the price of gold in 1979 prompted renewed interest in the Mercur gold property by Getty Oil Company, owner and operator, and Gold Standard Inc. of Salt Lake City, Utah, currently retaining a 15% net profits interest. Extensive geological exploration work resumed to delineate the ore reserves, and metallurgical test work was initiated under the direction of A.H. Ross & Associates. This led to the development of an aqueous pressure oxidation process suitable for treatment of the refractory ores. Subsequent geostatistical studies revealed that the distribution of high refractory ore was less than previously estimated, and thus a higher return on investment could be realized if a direct carbon-in-leach process were used despite a sacrifice in overall recovery. This paper reviews the geological and metallurgical studies that led to this final process selection.

Jan 1, 1984

By John Birkinbine

The following data concerning the general dimensions and district-location of the blast-furnaces of the United States are intended to supplement a paper of similar title, which appears in volume xiv., pages 561 to 577, of the Transactions, and bring the record to the end of the calendar year 1886. The reasons for presenting the figures at so short an interval since the former paper are that the American Iron and Steel Association has lately issued a new directory of iron and steel works (edition of 1886) from which many of the plants which have been inactive are omitted and new industries added, to such an extent as to materially affect the figures presented in the first paper; and also that the improvement in business has encouraged a production of pig-iron in 1886 in excess of any previous outputs, and the results obtained in the industry at large as well as at individual plants form a better index of what the American furnaces can accomplish than those heretofore presented. The statement will not be extended beyond the production of pigiron, although it could well be made to include the manufactured iron and steel; and while the data given have been verified as far as possible up to the close of the year 1886, no attempt, except in special cases, has been made to note the changes which have taken place since that time—changes which within the next twelvemouth will affect some of the figures here presented. At the close of the year 1886 there were 579 blast-furnaces reported on the active list—an apparent decrease, as compared with my former paper, of 97 stacks; but this was not an actual decrease, since most of the furnaces dropped from the Directory were those which, owing to location, inefficient equipment, or fake of ore-supplies, etc., were considered likely to remain inactive, although a number of them will possibly be temporarily put into blast with iron advancing in price. On the other hand the new plants added

Jan 1, 1887

By R. C. McFarlane, T. D. Mueller, J. E. Walstrom

In evaluating uncertainty, experiments are usually performed repeatedly and then conclusions are drawn from the distribution of results. With the advent of high-speed electronic computers, it is possible to perform experiments using mathematical models constructed to simulate complex experiments or operations. Statistical methods are then applied to the results of the simulated experiments. This procedure forms the busis of this paper. Demonstrated is the need for properly accounting for uncertainty in petroleum engineering problems. How uncertainty affects solutions is evaluated in three example illustrations. The method used to evaluate uncertainty in petroleum engineering studies is the Monte Carlo simulation procedure.'-" INTRODUCTION The solution to most technical problems may be derived from interrelationships among several quantities called variables or parameters. There may be only a few variables or several hundred. Interrelationships among parameters may be explicit or implicit, well established or only approximate. Some variables that fully or partially depend on the magnitude of others are called dependent variables. Input variables for most practical problems are not precisely known; there is usually an uncertainty in their value. The degree of uncertainty may vary from one variable to another. Variables that are known accurately are called determinates.' For instance, the gravity of crude obtained from a particular pool may be known precisely, and therefore is a determinate. The degree of precision with which a quantity can be determined increases as data describing the pool are accumulated during the development of the field and the producing life of the pool. The uncertainty of a parameter may result from difficulty in directly and accurately measuring the quantity. This is particularly true of the physical reservoir parameters which, at best, can only be sampled at various points, and which are subject to errors caused by presence of the borehole and borehole fluid or by changes that occur during the transfer of rock and its fluids to laboratory temperature and pressure conditions. Uncertainty may also result in attempting to predict future parameter values. This type of uncertainty is particularly evident in investment analyses involving future costs, prices, sales volumes and product demand. Uncertainty in the solution to investment problems is often called risk, and its study is called risk analysis.' Uncertainty also enters into biological and sociological analyses in which indeterminate factors are often important due to limited control of the experimental material. It is customary, in evaluating uncertainty, to perform repeated experiments and to draw conclusions from the distribution of the results of these experiments. With the advent of the high-speed electronic computer, it is possible to construct mathematical models which simulate complex experiments or operations and to perform the experiments repeatedly, utilizing the models. Statistical methods are then applied to the results of the simulated experiments This method forms the basis of the investigation reported here. PROBABILITY DISTRIBUTIONS FOR VARIABLES The uncertainty in the value of a variable may be indicated by a probabilistic description accomplished by expressing the quantity by a probability distribution. Many recognized probability distributions can be used to describe physical quantities. Recent studies used various types of distributions to describe core analysis data.',' However, for the examples in this paper, the uniform and triangular distributions are believed to reasonably approximate the data used (Fig. 1). The uniform distribution confines the variable between an upper and a lower limit. The variable may lie anywhere between the two limits. This distribution is used when no one range of values for a variable is more probable than any other, but information or intuitive reasoning indicates the variable will lie somewhere between the chosen limits. The triangular distribution is used for a variable when more data are available to indicate a central tendency of distribution. This allows postulating a "most likely" value to the distribution and upper and lower limits. In this case, as for the uniform distribution, the variable is not expected to assume a value less than the lower limit or greater than the upper limit. However, with improved quality of data it can be postulated that the variable will tend to assume a value close to the most likely value, and that there will be a decreasing probability for values away from the most likely value. The area under either of these probability distributions is equal to unity since it is assumed that there is a 100 percent probability that the variable will lie somewhere under the curve. An ordinate erected at any particular value of the variable divides the area under the curve into two parts: the area to the left of the ordinate represents the probability that the value of the variable will be equal to or less than the value of the variable at the position of the ordinate, and vice versa. The probability is zero that the variable will have any specific deterministic value. If two ordinates are drawn for any two values of the variable, the probability that the variables will have a value lying between these ordinates is equal to the area under the curve lying between the ordinates.

By G. E. Warner

This paper presents a review and analysis of a highly stratified Burbank sand waterflooding project in Osage County, Okla. Permeability values in this reservoir range from less than 0.1 md to nearly 3 darcys, and 90 percent of the permeability capacity is contained in approximately 26 percent of the reservoir volume. To date, the project has recovered 103 bbl/flood-acre-ft since waterflood initiation, which represents 50 percent of the total preflood cumulative and 12 percent of the original stock-tank oil in place (OSTOIP). The outstanding feature of this project has been the economical recovery of a sizable quantity of oil at water-oil ratios higher than those normally considered prohibitive. Nearly 70 percent of the recovery to date has been achieved at water-cut values greater than 95 percent. An ultimate waterflood recovery of 138 bbl/flood-acre-ft, or 67 percent of the preflood recovery and 16 percent of the OSTOIP, is predicted. The ultimate primary and secondary recovery will be 302 bbl/acre-ft and approximutely 40 percent of the OSTOIP. The actual performance is compared with the predicted performance by both the Stiles and the Dykstra-Parsons methods, and applicabiliry of these methods to this particular reservoir is evaluated. The performance of this project indicafes highly stratified reservoirs can be successfully and economically waterflooded when either reservoir or economic conditions preclude the use of mechanical and chemical means of mdbility control. Introduction The concept of the stratified reservoir has been used by reservoir engineers for many years to describe the vertical variations in permeability within a reservoir. Numerous techniques have been advanced to predict the expected waterflood performance of the stratified reservoir, and in most cases they prove reasonably accurate. The advisability of undertaking a prospective waterflooding project is determined, based on these predictions. This paper presents a review of a waterflood project in a highly stratified reservoir that normally would be considered a marginal prospect, at best, when evaluated with any prediction technique properly adjusted for reservoir conditions. This kind of project can be successful if the predictions are used to design a waterflooding system capable of economically recovering an oil cut of 1 to 2 percent. Experience gained in the early stages of the project's development was profitably applied in the later development of the entire reservoir and could prove beneficial to other projects with similar reservoir stratification or fracture characteristics. The East Burbank pool waterflooding operations have been developed in three separate stages, each of which has been a separate project: Mid-Burbank Unit, Flood A, and Stanley Waterflood. When referred to collectively, these projects will be called the Composite Project. The Skelly Oil Co.'s Barber lease — the only portion of the pool not included in the three projects — is operated as a separate facility with a cooperative injection-well agreement. It contains less than 80 productive acres and would not significantly affect the over-all performance picture.

Jan 1, 1969

By R. Malmstrom, H. Heden, K. Likin

Sublevel caving techniques at Luossavaara-Kiirunavaara AB (LKAB) in Sweden have undergone significant modification over the years as management strives to maintain mine viability amidst rising costs and erratic iron ore prices. LKAB, which is 96% state-owned, is Sweden's principal iron ore producer and operates three iron mines north of the Arctic Circle. By far, the largest of LKAB operations is the Kiirunavaara (Kiruna) underground iron mine which extracts an estimated 30 million t/y of ore, Other iron mines include the Malmberget underground nine, rated at 12 million t/y of ore, and the Svappavaara open-pit mine, rated at about 4.5 million t/y. Mined ores from Kiirunavaara and Svappavaara are shipped by rail to the northwestern harbor of Narvik, while Malmberget ores are sent to Lulea, located to the southeast. LKAB iron ores are marketed by Malmexport AB, which is owned jointly by LKAB and Granges, Sweden's base metal producer.

Jan 10, 1979

By Olaf N. Rove

YEAR 1951 has been bright for the mining geologist. He has arrived after struggling for a generation or two to sell his wares through service to the operator, the mine superintendent, and the manager. But as he establishes himself on the operating front, he is faced with even greater challenges; namely, the development of basic geologic principles governing ore-forming processes and the occurrence and distribution of mineral deposits. These principles are needed to guide his ever-widening search into new areas. He must now stimulate the interest, confidence, and imagination of the mining executive and layman in fostering the research essential to expand rapidly the basic science of geology and its more specific applications to the mining industry. The hallowed time-tested tools of the prospector and the industry are no longer adequate. New basic data, principles, and ideas are needed to guide industry's exploration. The entry of Government into exploration, by lending money to prospectors and operating companies to partly finance exploration, is one of the major events of the year. This was one of the activities for which the Defense Minerals Administration was established in the Department of the Interior. DMA was staffed largely with men from industry, but the Bureau of Mines and the Geological Survey have acted as its technical advisors and have provided its field staff. Since the start of this work in May 1951 to November 19, 1951, the DMA has approved 208 exploration projects while denying 318 others. The contracts involve about eleven million dollars worth of exploration, of which Government's share is about sixty percent. A few contractors have already made discoveries and are into production to repay their loans; others have completed their projects without making a discovery. In November, the DMA was split into two successor units. The Defense Minerals Exploration Administration was set up in the Interior Department to carry out the exploration program. The Defense Materials Procurement Agency was organized as a separate agency to carry out the other functions of the former DMA, as well as general strategic materials procurement. The strategic materials group of the Economic Cooperation Administration was transferred to DMPA in order to centralize the procurement from foreign sources into one agency, although the authority and scope of activities of this group have not been announced as of the middle of December. The DMA-DMEA-DMPA programs are making large demands upon the technical manpower of the Geological Survey and Bureau of Mines. It is still too early to evaluate with confidence the productiveness of this diversion so far as the immediate and long-range effects are concerned. Many of the individuals associated with these programs, as well as others in the industry, are convinced that from a long-range national viewpoint, the regular programs of both the Survey and the Bureau equal or even exceed in importance the current emergency mineral activities of these two agencies. Uranium Uranium continued to be the glamour-girl metal of the mineral industry, and at the request of the Atomic Energy Commission uranium and thorium were included in the DMA exploration program. Industry's intensive prospecting and mining activities in 1950 were further expanded early in 1951 when the Atomic Energy Commission announced an increased price schedule and a new bonus payment

Jan 1, 1952

By C. K. Leith

ManGanese is one of the minerals which is principally consumed in countries other than origin. Nearly 85 per cent. of the world's production is used by the United States, England, Germany and France, and roughly a third of the total is used by the United States alone. On the other hand, over 85 per cent. of the world production comes from Brazil, Russia, India, the Gold Coast of Africa and the Sinai Peninsula. It follows from this fact that practically all manganese moves across international boundaries in raw or alloy form, and much the larger part of this inovement is for considerable distances and is occan bornc. There is no indication that any one of the principal consuming countries can develop even approximately adequate supplies of its own. Under abnormal war conditions, with high prices and changes in metallurgical methods, only 35 per cent. of the needs of the United States was met from local sources, and under our recent tariff only 11 per cent. There are thousands of manganese deposits scattered about the world, but only a very few which can figure largely in supplying requirements on a modern scale. The known reserves, together with highly probable extensions and explorations now under way, indicate no shortage from a world standpoint for many deeades to come. The production and marketing of manganese is going steadily into fewer and stronger hands. The steel industry uses over 90 per cent. of all the manganese mined and is acquiring control of a considerable part of the production in all of the principal fields—the Germans in Nikopol, the English in India and Gold Coast, the Americans in Georgia, India, Gold Coast and Brazil. Some of the controlling companies arc of international scope. Concentration of commercial control is a notable tendency. A natural consequence is the growing uneasiness of smaller consumers the world over about their ultimate supplies and desire to know more definitely how and where manganese supplies will be controlled in the future. The sources of supply are few cnough to warrant the belief that more or less monopolistic elements of control arc not impossible.

Jan 1, 1927

By Robert B. Fulton

The objective of this chapter is to discuss the interrelationship between industrial minerals and chemical manufacturing. It is intended to supplement rather than duplicate the commodity chapters. Particular emphasis is given to the pertinent chemical element and to market factors. Condensing this broad subject into a few pages of this handbook permits treating only the most important elements derived from industrial minerals. Hydrocarbons, which quantitatively dominate as raw materials for the chemical industry, are omitted, as are the metallic elements and the minerals covered in other "use" chapters such as phosphorous, potassium and nitrogen for fertilizers, and titanium dioxide for pigments. The remaining six elements of major importance are: boron, bromine, chlorine, fluorine, sodium, and sulfur. These elements are treated individually under separate headings. Table I (Jones, 1973) affords an overview of the main industrial minerals, the chemical products derived from them, and end uses of the products. Salt brines have particular importance as raw material sources for the chemical industry. Table 2 (Anon., 1967) is a chart of the chemical compounds derived from four types of brines: (1) Owens Lake-type brines, which are sources of boron and sodium compounds; (2) Midland-type brines, from which bromine, iodine, and chlorides of calcium, magnesium, potassium and sodium are derived; (3) Searles Lake-type brines, yielding boron, bromine, lithium, magnesium, potassium, and sodium compounds; and (4) Silver Peak-type brines, produced mainly for lithium. Market Attributes Some of the important market traits common to industrial minerals used by the chemical industry are listed below. 1. They are international commodities, such as fluorspar and sulfur, which largely move to foreign consumers. 2. Grade, and freedom from deleterious elements are important factors affecting their usability in chemical processes. An example is salt (NaCl) used in electrolysis where ultrapure evaporated salt is required to meet rigid specifications. 3. Purified products take on the characteristics of specialty items and command a distinctly higher price than the basic commodity from which they are derived. 4. In practically all cases, chemical users require some sort of cleaning or beneficiation of the naturally-occurring mineral to bring it to specification, and individual specifications may vary from user to user for essentially the same use. 5. In some instances it is necessary to strike a balance between what the vendor can supply and what the buyer requires, with the result that specifications have to be eased to afford the needed materials in marginal cases. 6. Because they tend to be bulk commodities, low cost for handling and transportation are important and such costs may limit the area from which a chemical user can draw his supply. For example, fluorspar from China and Thailand normally goes to Japan, while South African fluorspar can go either to Japan or to the US. 7. Shipments are usually in bulk and frequently in multiple-car, full-trainload or full-shipload lots to reduce transport costs, which in turn may require large terminal investment facilities.

Jan 1, 1983

By T. Sterry Hunt

I HAVE lately had occasion to examine sulphuretted ores of bismuth both from Tudor, Ontario, and Latete, New Brunswick. The former consisted chiefly of bismuth-glance, carbonated at the outcrop, and within associated with some metallic bismuth, iron-pyrites and graphite, in a quartz gangue. In the second locality, where it appears to be present in considerable quantity, the veinstone is also quartz, but the associates of the bismuth-glance are chalcopyrite and galena. The treatment of such mixed ores in the furnace for the extraction of the bismuth could yield only a very impure product, and in view of the high price of the metal I tried with success a wet method for the treatment of the ore, which is based on well-known chemical reactions, and may, in some cases, be advantageously used. The pulverized ore is dissolved by heat in commercial nitric acid, and the remaining gangue washed by displacement, first with a little strong acid (which is used to attack a fresh portion of ore) and then with a moderate quantity of water, which is added to the first solution. This, if the excess of acid be considerable, may be partially

Jan 1, 1873

By J. J. Marcus

Mineral industry decision-makers are frequently required to select between competing equipment. Various criteria and methods are currently being used, and this writer would like to suggest a method recently tested on two large power shovels in an open pit mine. An initial examination of both shovel A and shovel B indicated that the latter should give the best overall results. since: 1) It swings 13% faster; 2) it carries a dipper with 23%: greater capacity; 3) purchase price is 8.6% lower; 4) shovel weight is 12.5% greater; 5) it has considerably greater bail pull under most operating conditions; 6) the electric controls are of a more modern design. However, shovel B has half the service life. With these points in mind, shovel A was selected by The Buckingham Method, an operations research technique.

Jan 9, 1965

By J. H. Wiggins

Granting that about 600,000,000 bbl. of light oil will be produced in the United States this year and taking the Bureau of Mines' statement that 71/2 per cent. of the total crude production will be lost before the finished gasoline is shipped from the refinery, the volumetric evaporation will be 45,000,000 bbl. of the cream of the gasoline. This is a ConseNative figure and is equivalent to 1,890,000,000 gal. The real value of this liquid is at least 150 per cent. of the value of an equal volume of motor fuel. At only 10 c. per gal., the value lost is $189,000,000; at 15 e. per gal. the loss is $283,000,000. If 750,000,000 bbl. of light and heavy oil are produced here this year and the average price per barrel is $1.333, the gross return to producers will be $1,000,000,000 and the net returns about $200,000,000, if the cost of production is only $1 per barrel. Thus, the evaporation bill is about 20 per cent. of the gross income and is equal to the net income of the crude-oil producers. Two other comparisons with popular phases of the petroleum industry will help give an adequate conception of the evaporation problem. These are: cost of preventing evaporation compared to cost of cracked gasoline and volume of gasoline evaporated compared to volume of gasoline manufactured from natural gas. When gasoline is manufactured from heavy oils by the cracking process, there are two important divisions of the total cost of the product: the manufacturing cost, such as plant cost, operation, maintenance, etc., and the cost of the barrel of heavy oil, from which the cracked gasoline is made. In preventing evaporation loss the cost first mentioned enters into the total cost, but the second cost is eliminated; that is, no charge is necessary for stock from which to manufacture the saving. A detailed analysis of these two costs on a large scale shows that the net income from a dollar spent in preventing evaporation loss from the lease through the refinery is twice the net income from a dollar spent in cracking. Of

Jan 1, 1924