Search Documents

By W. Irwin Moyer

Two methods for the rapid valuation of oil properties are in common use. The one best known and most widely used is the "per barrel" value, based on the present daily production of the well, without regard to its past performance or the history of the sand or pool from which it produces. The second method is the "time to pay out," or the lengt of time required for a well to place itself upon the credit side of the ledger, from which time the returns from its production (less the operating expenses) will be clear profit. The time basis for valuation is also commonly used in the appraisal of an undeveloped lease. In most oil fields, it is not thought good business to invest in production that will not pay out in at least 4 to 5 years. Nearly all buyers (except in certain regions of very persistent production like the deep-sand territory of the Appalachian field) expect wells to pay out in considerably less time than this. Like the barrel-per-day price, the time necessary for a well to pay out has been determined for each field, so that one frequently hears a field or district referred to as having a certain time to pay out. This is considered the norm for that field or district and the buyer and seller base their value, to greater or less extent, on their belief in the accuracy of this time. The writer long ago became convinced of the inaccuracy of the barrel-per-day method, except when greatly modified for local conditions, such as the age of the wells, their economic limit, operating conditions in the field, the future price of oil, and the persistence of the sand as a producer. When so modified, this method becomes more of an analytic or predicted probable-yield valuation. While the appraiser may not go through each step in a valuation based on future returnable revenue, his knowledge of the field and the local conditions surrounding his leases make it possible for him to estimate a fair sales value that, in many cases, will be a close approximation to the truth. This is quite different from she commonly understood barrel-per-day value, in that the conditions turrounding the sale of one lease or property at a fair market value may

Jan 1, 1923

By W. Irwin Moyer

Two methods for the rapid valuation of oil properties are in common use. The one best known and most widely used is the "per barrel" value, based on the present daily production of the well, without regard to its past performance or the history of the sand or pool from which it produces. The second method is the "time to pay out," or the lengt of time required for a well to place itself upon the credit side of the ledger, from which time the returns from its production (less the operating expenses) will be clear profit. The time basis for valuation is also commonly used in the appraisal of an undeveloped lease. In most oil fields, it is not thought good business to invest in production that will not pay out in at least 4 to 5 years. Nearly all buyers (except in certain regions of very persistent production like the deep-sand territory of the Appalachian field) expect wells to pay out in considerably less time than this. Like the barrel-per-day price, the time necessary for a well to pay out has been determined for each field, so that one frequently hears a field or district referred to as having a certain time to pay out. This is considered the norm for that field or district and the buyer and seller base their value, to greater or less extent, on their belief in the accuracy of this time. The writer long ago became convinced of the inaccuracy of the barrel-per-day method, except when greatly modified for local conditions, such as the age of the wells, their economic limit, operating conditions in the field, the future price of oil, and the persistence of the sand as a producer. When so modified, this method becomes more of an analytic or predicted probable-yield valuation. While the appraiser may not go through each step in a valuation based on future returnable revenue, his knowledge of the field and the local conditions surrounding his leases make it possible for him to estimate a fair sales value that, in many cases, will be a close approximation to the truth. This is quite different from she commonly understood barrel-per-day value, in that the conditions turrounding the sale of one lease or property at a fair market value may

Jan 1, 1923

By David Baker

A Discussion of the Paper of David Baker, read at the Lake Superior Meeting, September, 1904. (Washington Meeting, May, 1905.) MR. JOHN J. PORTER, Chicago Ill. (communication to the Secretary*) :-Mr. Baker's account of his experiences with stock-distribution has been particularly interesting to me, as it confirms the opinions which I had formed concerning the rapid failure of linings in several furnaces that have recently come to my notice. These furnaces, four -in number, are of modern construction, having been built or remodeled within the past two years, and are equipped with a well-known type of skip-hoist and double-bell charging-apparatus. In every case, a hot spot has developed within a few months after blowing-in, which has already compelled relining in two cases, and the probabilities are strongly against a long campaign in the other two. Since the hot spot in each case appeared in a position approximately opposite to the skip-hoist, and since the sizing, mentioned by Mr. Baker, is very apparent, it would seem as though there could be no doubt concerning the cause of the trouble. Nevertheless, there are some who cannot see it in that light; for the managers of two of these plants, at least, do not admit the existence of bad distribution, and have satisfied themselves by putting in cooling-plates, thickening the lining of the in-wall, and changing the brand of the fire-brick used for the construction of the walls. From observations of the clumping-action of the skip-hoist, and from subsequent inspection of the stock-distribution in the furnace itself, I arrived at the conclusion, some time ago, that no system of filling could be perfectly satisfactory where the stock is dumped into the hopper from one side, also that some

Mar 1, 1905

By M. E. Wadsworth, I. B. Cutler, R. W. Bartlett

The oxidation kinetics of ZrC was studied between 450" and 580°C in oxygen pressures from 6.5 x 10-to 1 atm using a ther mogravimetric apparatus and sized powder samples. Two parallel rate controlling processes were observed. A surface reaction occurring at the ZrC-ZrO2 phase boundary accounted for most of the oxidation and had an activation enthalpy of 46 kcal per mole. The other process, believed to be diffusion of oxygen into the ZrC lattice partially replacing carbon, had an activation enthalpy of 53 kcal per mole. The enthalpy for chemisorption of O2 on ZrC was determined to be —13 kcal per mole. Water vapor in the presence of oxygen accelerated the surface reaction rate. THERE has been little reporting of formal rate studies or attempts to ascertain the mechanism of oxidation of carbides. MacDonald and Ransley1 studied the oxidation of titanium carbide which has the same structure as zirconium carbide, fcc. They observed an initial increase in rate with increasing temperature followed by a rapid decrease through a rate minimum and a subsequent second increase at higher temperatures. The discontinuity in the rate rise was attributed to a phase change in the oxide which changed the rate determining step from the surface reaction at the carbide-oxide interface to diffusion through the oxide layer. Samsonov and Golybera 2 studied titanium carbide and reported that during the initial period of oxidation a dense film of Tic-TiO was formed followed by the formation of less adhering layers of higher oxides. The purpose of this investigation was to study the kinetics of oxidation of zirconium carbide and to attempt to gain some knowledge of the mechanism by which oxidation occurs. EXPERIMENTAL PROCEDURE Measurement of the weight gain associated with the oxidation of ZrC was used to determine oxidation rates. The principal experimental parameters were surface area, temperature, and oxygen pressure. Although moderately sized crystals of ZrC can be grown by the Van Arkel method, the only commercially available ZrC is a powder. In using powders, the surface area must be controlled either by fabricating the powder into a sintered pellet with a measurable surface area, relatively fixed during oxidation, or by using sized unconsolidated powder and applying appropriate geometric considerations to the shape of the grains to correct for their diminishing surface areas as they oxidize. Both techniques involve some difficulties. pellets of binder-free zirconium carbide can be made by hot pressing, but it is difficult to obtain densities greater than 90 pct of

Jan 1, 1963

By D. L. Kelley

High-viscosity water injection has been proposed for use in reservoirs containing high-viscosity crude oils. Previous publications have largely ignored the possible effects of the connate water on the proposed process. This paper describes experimental work which indicates that the connate water will be forced ahead of the injected water to form a bank of low-viscosity water. This decreases the oil recovery which would be expected if such a bank were not formed. These effects are shown for a range of fluid mobilities and connate-water saturations for a five-spot injection system. In general, oil recoveries using viscous water are significantly greater than for untreated water even though they are less than would be expected if no connate water bank were formed. INTRODUCTION The effect of mobility ratio on the oil recovery of wa-terfloods has been known for many years. Muskat first pointed out that the fluid mobilities (k/µ) in the oil and water regions would affect the performance of the water-flood, and he estimated the general effect of these variables.' Since this early work, studies of the effect of mobility ratio on secondary recovery have been reported where mathematical,' potentiometric3 and scaled flow models' were used. These studies have shown that a reduction in the mobility ratio between the oil and the displacing fluid would cause additional oil recovery when water-flooding reservoirs containing viscous crude oils. Studies reported by Pye- nd Sandiford 8 have indicated that chemicals to increase injection water viscosity are now available and can be used to reduce the over-all mobility ratio of a waterflood. Where mobility ratios are controlled by the injection of viscous fluids, the connate water of the reservoir can play an important part in the displacement of the reservoir oil. The purpose of this study was to determine the effect of the connate-water saturation in waterfloods where viscous waters are used for injection. DISPLACEMENT OF THE CONNATE WATER Russell, Morgan and Muskat7 were the first to recognize the mobility of connate waters in waterflooding. They conducted waterfloods on oil-saturated cores containing 20 and 35 per cent irreducible water saturations, and found that from 80 to 90 per cent of the "irreducible" water was produced after only one pore volume of water was injected. However, their experiments were conducted at rates of flow significantly higher than those ordinarily occurring in waterfloods. Also, the cores were only from 4.0 to 8.5 cm long. Brown 4 studied a 100-cm linear sand pack which had been prepared to contain connate water and oil. He used 140- and 1.8-cp oils with injection water of essentially the same viscosity as the connate water. He found that all of the connate water was displaced by the injection water in both cases. However, the injection volumes required for complete displacement of the connate water were considerably higher in the case of the more viscous oil. To verify the results of the foregoing experiment, a 10-ft-long linear model was constructed by packing 250-300 mesh sand in a 1/2-in. diameter nylon tube. The model was evacuated, saturated with a brine of 1-cp viscosity, and flooded with a 41-cp mineral oil to the irreducible water saturation of 10.9 per cent. The model was then waterflooded by the injection of a water solution which had an apparent viscosity of 42.6 cp. The solution consisted of 0.5 per cent methylcellulose in distilled water. The viscosities of the oil and connate water were measured with an Ostwald viscosimeter. The viscosity of the polymer solution was calculated by Darcy's law using pressures measured during actual flow conditions. The ratio of the mobility in the oil region to the mobility in the inject ion-water region was approximately 0.32. The mobility ratio of the oil region to the connate-water bank was approximately 14. The mobility ratio between the connate-water bank and the injection water region was 0.024. Approximately 84.5 per cent of the recoverable oil was produced before water breakthrough. Immediately following breakthrough, oil and connate water were produced at an increasing water-oil ratio until the viscous injection water broke through. At viscous-water breakthrough, 96 per cent of the original connate water had been produced. After breakthrough of the viscous water, there was no additional production of connate water or oil. The near-

Jan 1, 1967

By A. J. Ardell

SASS and cohenl (S-C) have recently reported some transmission electron microscope observations of an interesting effect which they call "veining". They observed veining in thin foils of solution-treated and (in certain cases) aged samples of a Ni-10.3 at. pct Ti-0.6 at. pct A1 alloy (assumed equal to 10.9 at. pct Ti). S-C suggest that veining in solution-treated samples is due to the selective electrolytic etching of titanium-rich regions in alloys which are otherwise homogeneous. They associate the veins with the discrete titanium-rich regions detected in a magnetic study of aging in this system by Ben Israel and Fine,' and they also suggest that the initial strengthening of aged Ni-Ti alloys is due to these titanium-rich regions, rather than the formation of the coherent precipitate (Ni3Ti, L12 crystal structure).

Jan 1, 1970

By E. S. Leaver

THE amount of gold that occurs in a ton of milling ore from most of the large-scale copper mines is so small that unusual care and special attention are necessary to recover it. In some cases the gold is not considered important enough to warrant daily assays of the various products. Considering the large tonnage of copper ores that are now concentrated by flotation, as computed in a recent review, the gross gold content is surprisingly large, probably amounting to over 10 million dollars per year in the United States. The indications are that in many of the copper-milling operations with gold content under $1 per ton, only 50 per cent. of the gold is recovered in the flotation concentrates. Lime is generally used as a depressant for pyrite in the flotation circuit. The authors have shown that high lime or a solution high in calcium ions is also a depressant for gold. Their experiments on several well-known ores show that by careful regulation of the alkalinity of the mill solutions, a higher flotation recovery of the gold can be obtained, together with equally good copper recovery in a good grade of copper concentrates. In cyanidation for the recovery of gold, the best accepted practice demands that the mill solutions be tested and regulated by simple chemical reactions at definite periods during treatment or with each change in the treatment. It is similarly important for the recovery of gold that the solution in the flotation circuit be analyzed for calcium ions at regular periods and at each step in the flotation practice. The lime should be added when and where needed and not in excessive amounts at the head of the mill.

Jan 1, 1931

By AIME AIME

BLANDFORD. C. BURGESS, the new Chairman of the Industrial Minerals Division, took the advice of Horace Greeley in reverse-he turned his hack on San Francisco and the Golden Gate, and after a few side excursions toward Alaska and Arizona, hit the trail eastward, not for the lonesome pine, but for Spruce Pine, N. C. Born Aug. 10, 1893, in San Francisco. Burgess found his first job, shortly after finishing high school at 19, as axeman for a surveying party of engineers working for the Southern Pacific Co. in Oregon. Later he moved on up with them into Alaska. He liked the engineering profession, and decided to equip himself further so he entered the University of California in the fall of 1913. and for the next two years devoted himself to acquiring an education in civil engineering.

Jan 1, 1945

Charles H. Morgan, Worcester, Mass. (communication to the Secretary): In connection with Mr. Douglas's mention of the continuous charcoal kiln used at Kopparberg, some further data concerning this important invention may be of interest. Before giving these, however, I will say a word or two concerning other features of Swedish practice. In 1894 I spent two days at Soderfers with Mr. Tom Bergendal, the manager of the works, and was specially interested in the gas-producers and wood-drying kiln, illustrated in the paper contributed to our Transactions by Mr. Odelstjerna in that year.* The wood-drying kiln is, however, quite different in design and construction from Ljungberg's charcoal kiln. In the summer of 1894 it was discovered that by placing the gas-producer as close as possible to the open-hearth furnace, and working the producer hot, ordinary weather-dried wood, still containing a considerable percentage of moisture, could be used to advantage in the melting-furnace. Hence, the dryingkiln was needed for wet wood only. One of the iron-works of the Udeholm Go. was the first to adopt the Lundin saw-dust gas-producer and condenser, enabling them to make gas from saw-dust containing 45 per cent. of moisture, and convey the gas from the condenser through wooden pipes to the Siemens steel-melting furnace.† This sawdust gas gave very satisfactory results in iron-works; but the proprietors experienced much trouble by reason of the pollution of rivers by the tar-water from the condenser. On my visit, in 1894,I found that the Udeholm Co. had put in for their steel-melting furnaces the same wood-gas producers

Jan 1, 1899

By Rudyard Kipling

Through the courtesy of the British Museum of Natural History we have received a copy of an address delivered by Rudyard Kipling at Folkestone, Feb. 15, 1918. We take pleasure in reproducing it in full, because its sentiments are just as appropriate here and now as they ever were. If you will allow me. I will tell you a story. Once upon a time, a. hundred years ago, there was a large and highly organised community in India who lived by assassination and robbery. They Were educated to it from their infancy; they followed it

Jan 9, 1918

By H. Engelmann

THE very extensive development of a brown coal formation, in the region of the Rocky Mountains, is well known to all of you. The existence of these coals was known years ago, but they were of no practical importance until within a few years, when the mineral wealth of that country began to be developed and railroads were built. As their qualities became better known, their adaptability to domestic manufacturing and metallurgical purposes was more appreciated. They are still much undervalued, although they are mined at some points on a very extensive scale. A large portion of this coal formation is of cretaceous age, while it appears to extend into the tertiary epoch; but whatever difference there may be in the ages of these coals of different localities, they all have some common characteristics which distinguish them from our Eastern stone coals of the

Jan 1, 1876

The first discovery of gold in Montana is credited to François Finlay, a half-breed, from the Red River country, in Canada; he went to California during the early days and learned there how to wash the gold from placer deposits; then, on his return, he crossed Montana and found gold on the western slope of the Rocky Mountains, on Gold creek, a minor tributary of the Hell Gate river, in what is now Deer Lodge county. That was in 1852.* Finlay did not find enough gold to induce him to continue at work, but six years later a group of miners, led by the brothers James Stuart and Granville Stuart prospected on this same creek, obtaining about ten cents to the pan. They, however, were harassed by the Blackfeet Indians, and they were also handicapped by lack of proper tools; so they too desisted from further operations. Two years later, in 1860, Henry Thomas started to work on Gold creek with three sluice-boxes hewn out of green timber that he cut on the spot. With this simple apparatus he won from $1.50 to $2.00 per day. This may be considered the fist instance of systematic mining in Montana. Meanwhile the Stuarts went to Fort Bridger, in southwestern Wyoming, where they remained as traders until 1861, when, again lured by the gleam of gold, they returned to the valley of the Deer Lodge and resumed prospecting, using 10 sluice-boxes that were brought from Walla Walla, in Washington, 425 miles distant. In the summer of 1862 they were joined by many others, chiefly from Colorado, in consequence of an exchange of

Jan 1, 1932

By H. Engelmann

The very extensive development of a brown coal formation, in the region of the Rocky Mountains, is well known to all of yon. The existence of these coals was known years ago, but they were of no practical importance until within a few years, when the mineral wealth of that country began to be developed and railroads were built. As their qualities became better known, their adaptability to domestic manufacturing and metallurgical purposes was more appreciated. They are still much undervalued, although they are mined at some points on a very extensive scale. A large portion of this coal formation is of cretaceous age, while it appears to extend into the tertiary epoch; but whatever difference there may be in the ages of these coals of different localities, they all have some common characteristics which distinguish them from our Eastern stone coals of the

Thus far virtually the sole theme of the conservationist has been the preservation of natural resources. Little thought has been devoted to the conservation of America's most significant asset-her people. True, considerable effort has been devoted to conserving man's physical strength by the invention and application of labor-saving machinery. Notable progress has been made also in the conservation of man's health through important discoveries in medicine. However, little if any positive success has been achieved in the conservation of the most valuable attributes of man-intellect, skills, manpower. Human resources are interrelated and interdependent. There is no monopoly on knowledge or skills' or human energy. No one must sell them short. All the knowledge and all the skills and all the energy possessed by all men are required to render all the services needed by all men. One of the major sources of wasted manpower is found in the nation's schools, with an educational system based on the outmoded theory of uniform education for all. Actually, if democracy means free initiative for the individual, and unlimited progress at the maximum rate of speed of which the individual is capable, then our public schools are not democratic in-

Jan 1, 1950

By R. M. Briney

A RETURN to nonwar conditions characterized the year 1946. The acquisition and forced use, under Government auspices, of low-grade and uneconomic ores, both foreign and domestic, ceased in 1945, but there was some carry-over into the early months of 1946. The world shipping situation delayed the procurement of some foreign ores, but conditions were improving by the end of the year. No actual shortage of any important alloy was experienced, hence the industry was able to make prompt shipment of orders placed. Price levels of ferroalloys, which had remained virtually constant through the war years, were forced upward, with increases on specific products as conditions necessitated. Standard ferroman-ganese and low-carbon ferrochrome were notable exceptions in that their price did not change. No new ferroalloy smelting plants were constructed. The Defense Plant Corp.. sold the works at Ashtabula, Ohio, to the Electro Metallurgical Co. A new type of ferroalloy furnace was described at the Birmingham meeting of the Electrochemical Society. Known as the "Elkem Rotary Furnace" it is distinguished by a rotating shell. The whole furnace, including shell, refrac-

Jan 1, 1947

By Richard B. Reese, George R. St. Pierre, Robert A. Rapp

The vapor pressures of pure iron and pure chromium have been measured using a Knudsen cell coupled with a mass spectrometer. The experimental results agree well with some previously reported data; heats of sublimation and vaporization have been calculated. From vapor pressure rr~easurernents, the activities of iron and chromium in their binary alloys have been determined for NcY = 0.10 to 0.65 over a 1400" to 1700~ temperature range. The activity of chromium in the liquid alloys was found to exhibit positive deviation from ideal behavior when referred to solid chromium as the standard state; however, for the activity of chromium referred to nonequilibrium undercooled liquid chromium as standard state, the activity behavior is almost ideal. ALTHOUGH the Fe-Cr system is important as the basic system of alloy steels, the thermodynamic properties of this system have not been thoroughly investigated at elevated temperatures. In view of the potential practical applications of such data as well as their contribution to alloy theory, further study of the Fe-Cr system was undertaken. In addition, further development of experimental techniques for equilibrium measurements at high temperature is required. The present research involved an application of the Knudsen effusion method in conjunction with a time-of-flight mass spectrometer. Belton and ~ruehan' have measured the activities in Fe-Ni and Fe-Co alloys by a similar method. Speiser, Johnston, and lackbburn' have determined the vapor pressure of pure solid chromium between 1283" and 1561°K by a Langmuir free evaporation technique. The vapor pressure of chromium was described by the expression: over the temperature range 1283" to 1561°K. McCabe, Hudson, and paxton3 have measured the vapor pressures of pure iron and pure chromium by the Knudsen cell technique around 1500°K. The vapor pressure and heat of sublimation at O°K, AH,", for pure chromium agreed within experimental error with the measurements of Speiser et al. at 1200°C. Kubaschewski and HeYmer~ determined the vapor pressure of pure solid chromium in the temperature range 1170" to 1400°C by the Knudsen effusion technique combined with a radioactive tracer analysis of crS1. Their results agreed with the work of previous investigators. Edwards, Johnston, and Ditmars5 have measured the vapor pressure of pure solid iron by the Langmuir technique between 1356" and 1519°K. The vapor pressure of solid iron in the temperature range studied was given by: The data of McCabe, Hudson, and paxton3 on the vapor pressure of pure iron around 1500°K by the Knudsen effusion technique were in good agreement with those obtained by Edwards et a~.~ Hultgren, Orr, Anderson, and Kelley give the selected values for the AH: of pure iron and pure chromium as 98,990 *200 and 94,340 * 500 cal per mole, respectively. These values are the average values determined in the several investigations by different methods. The Fe-Cr phase diagram7 is shown in Fig. 1. Previous determinations of activities in this system have been carried out by several investigators, but most of the work has been done on solid alloys. Using a Knudsen effusion method with cr5', Kubaschewski and Heymer4 reported that the Fe-Cr system exhibits positive deviation from the ideal behavior for compositions ranging from NCr = 0.0398 to 0.699 at 1170"

Jan 1, 1969

By William Best

OIL burners, oil furnaces, and methods of installation, have been the subject of many articles, but information concerning oil-burning systems, based upon scientific principles, is still in great demand, especially in the manufacturing districts of our country. Fuel oil, as it is termed (this being the residuum from oil refineries), has for many years been of great service to our manufacturers, and has justified its popularity not only by producing a superior manufactured product, but by turning out approximately 50 per cent. more product than can be made with coal fuel under like conditions. To install a system requiring only an oil-storage tank, a small pump, and an oil-supply main with numerous laterals leading to the various burners, furnaces, boilers, etc., is a comparatively simple matter; and, because fuel oil is very volatile, it is not necessary to heat it, even during the winter months in a very cold climate. Furthermore, only a small amount of power is required to atomize fuel oil, this often being done by a positive pressure blower, or by a mechanical burner. An analysis of fuel oil, together with that of various other liquid fuels, is given in Table I.

Jan 2, 1914

By William Newton Best

Oil burners, oil furnaces, and methods of installation, have been the subject of many articles, but information concerning oil-burning systems, based upon scientific principles, is still in great demand, especially in the manufacturing districts of our country. Fuel oil, as it is termed (this being the residuum from oil refineries), has for many years been of great service to our manufacturers, and has justified its popularity not only by producing a superior manufactured product, but by turning out approximately 50 per cent. more product than can be made with coa1 fuel under like conditions. To install a system requiring only an oil-storage tank, a small pump, and an oil-supply main with numerous laterals leading to the various burners, furnaces, boilers, etc., is a comparatively simple matter; and, because fuel oil is very volatile, it is not necessary to heat it, even during the winter months in a very cold climate. Furthermore, only a small amount of power is required to atomize fuel oil, this often being done by a positive pressure blower, or by a mechanical burner. An analysis of fuel oil, together with that of various other liquid fuels, is given in Table I.

Jan 1, 1915

By William Waters Van Ness

The Pierrefitte mines, situated in the South of France, in the district of the Hautes-Pyrenees, owe their name to the fact that the first mining operations of any extent, and of comparatively reccnt date, were carried out in the neighborhood of the village of Pierrefitte, which is a branch terminus of the Midi railway. The Pierrefitte mines, however, embrace a wide extent of country and several different concessions, on most of which comparatively little exploration-work has been done. The portion of the property presently to be described is a zone running roughly E—W., over a distance of about 5 miles from the valley of Cauterets to the valley of Estaing, the ridge dividing these valleys being a spur of the main chain of the Pyrenees, and running more or less at right angles to it. According to local tradition, which various indications tend to confirm, these mines are of ancient date, the first workings being attributed to the Romans, who are supposcd to have sought not only the lead but also the silver which is contained in the ore. Old slags have been found in the neighborhood which might well have been produced from the cupellation of lead-ores. These old workings, while of considerable extent at times, do not seem to have extended beyond a depth of 100 ft., even this depth being somewhat exceptional. The old notarial records of the district show that mines were known to exist, and that they were even worked, in the sixteenth century, but since the mines were abandoned (by the Romans or others) considerably prior to this period, very little

Jan 1, 1909

By Rush N. Hosler

This paper was prepared for the purpose of answering some of the many questions as to why, in the construction of Pennsylvania's Coal Mine Schedule Rating Plan, various factors were, or were not, taken into consideration. Much has been written about merit and schedule rating of industrial risks from an actuarial viewpoint, therefore this phase of the question is taken up only so far as may be necessary in presenting the practical application of the plan now in use. Companies writing fire insurance, about 30 years ago, were the first branch of insurance to use schedule rating; the values assigned their items were largely a matter of judgment. In 1913, the Industrial Commission of Wisconsin evolved the first schedule rating plan to be applied to industrial risks under compensation insurance. Pennsylvania, in 1916, with the inception of its Compensation Act, was the first state to apply the principles of schedule rating to coal mines. A definition of the term "schedule rating" submitted by the writer in a brief to the Safety Committee of the United States Coal Commission is as follows: Schedule rating, as applied to compensation insurance, is an instrument to measure the hazard of known causes of accidents to which employees are exposed in industry and thereby determine an insurance rate commensurate with said hazard. It was first applied to Coal Mining in 1916 in Pennsylvania.' In other words, for a mine operator to insure his employees for injury under the Workmen's Compensation Act, it is necessary that he pay a certain premium based on his payroll. If all mines were assessed the same premium, it would be unfair for the mine with low natural hazard, good safety conditions, and good accident experience to pay the same premium as a mine with bad conditions and experience, therefore schedule rating was introduced.2

Jan 1, 1925