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The following figures (Nos. 1-4) and tables (Nos. 1 and 2) were inadvertently omitted from the chapter entitled "Optimum Open-Pit Mine Production Scheduling" by Thys B. Johnson, Section 4, pages 539-562. [ ]

Jan 1, 1969

Jan 1, 1945

Jan 1, 1946

Jan 1, 1938

Jan 1, 1929

Jan 1, 1942

Jan 1, 1946

By Gregoire Gutzeit

The development reported in this paper was begun by the author a number of years ago, while he was a lecturer on complex chemistry and metallurgy at the University of Geneva, Switzerland, and in charge of that institution's research laboratory. Completion of the development and reduction to practice did not occur until last year at the Westport mill, laboratories and testing plant of the Dorr Company, where this method is now in general use for identifying and localizing the mineral constituents of both metallic and nonmetallic ores. It has proved to be a practical tool of the metallurgical staff at the Westport mill, devising unusual milling flowsheets for complex and refractory ore bodies. In a number of instances the findings have been successfully used as fundamental factors in the design and specification of complete metallurgical plants. Seven examples of the use of this method in solving practical milling problems are included in this paper. General Outline The microscopic study of an ore, at first only of scientific interest, has proved extremely useful both in practical geology and in ore dressing. The binocular magnifying lenses for rough observation of the products of an ore-dressing plant have been in use for a long time; but only within the last few years has a systematic microscopical examination of ore samples become a normal tool of any research laboratory dealing with ore-dressing problems. Such an investigation avoids considerable loss of time as well as empirical trials and useless experimentation. It will generally indicate the correct grinding and often will suggest the proper method of treatment. . The petrographic determination of transparent minerals in thin sections, or even in grains, has been perfected, and very accurate methods have been devised to meet any requirement, such as Feodorof's rotating stage on the petrographic microscope. Almost all transparent minerals can be positively identified by their optical properties; i.e., isotropism, anisotropism, color, pleochroism, refractory index, cleavage, crystal form, birefringence, and others. The identification of opaque minerals is a much more difficult problem and can be done only by using polished specimens. Unfortunately, most of the valuable metallic ores, and even some of the nonmetallic ones, are not transparent; therefore it has been necessary to develop a special technique for the determination of these minerals. Some optical properties—for instance, isotropism, anisotropism, color, cleavage, reflecting power-—are often adequate in roughly classifying the mineral. Only "reflecting power" is a measurable value, provided special photometric equipment (ocular photometer or Orcel's photoelectric cell) is available. The other optical properties mentioned are more or less relative,

Jan 1, 1943

By E. A. Anderson, P. W. Ramsey, E. J. Boyle

Only a few zinc-rich alloys are in commercial use today, and these depend largely upon solid solution effects for their desirable properties. Typical examples are rolled alloys containing about 1 Per cent of copper, with Or without additions of elements such as magnesium, and die-casting alloys containing about 4 Per cent of aluminum with small amounts of magnesium and sometimes copper." A number of elements are capable of forming alloys with zinc, Which do not enter into solid solution except in limited degree. The Present Paper considers One such system, zinc-titanium, in which alloys having potentially useful properties in the rolled form were found. Zinc-titanium System The zinc-rich portion of the zinc-titanium diagram, as determined by standard methods in this laboratory,3 is shown in Fig. I. The portion of the diagram of significance in the present work extends from 0 to about 0.5 per cent titanium. Gebhardt4 places the eutectic at 0.45 per cent, but the evidence in favor 01 the composition given in Fig. I is considerable. The solid solubility of titanium in zinc is very low indeed and possibly places these alloys in a somewhat different category from the commercial alloys previously mentioned. Alloy Preparation All of the alloys used in this work were prepared with titanium metal of 98.9 per cent purity. In most cases high-purity zinc (99.99 per cent) was used but sufficient work was done later to show that zinc of about high-grade composition would yield approximately equal results. Best practice in alloy manufacture seemed to be to prepare a zinc-titanium hardener by adding about 4 per cent of titanium metal to molten zinc and holding under a boric acid cover, with frequent stirrings, at 750°C, until the titanium had dissolved. The desired titanium content could readily be obtained in the final alloy by adding the calculated amount 01 this hardener. The alloys proved to be quite stable in composition, unless overheated, and, with reasonable temperature control, required no cover or flux to prevent loss of titanium content by oxidatioll, Hot-rollig Tests Three alloys containing, by analysis, 0.05, 0.12, and 0.23 per cent titanium were selected for preliminary study. Slab cross sections a a marked grain refinement* (Fig. 2) in the two alloys of highest titanium content. Cast unalloyed zinc has a columnar grain structure similar to that shown for the alloy of lowest titanium content but without the scatter of small equiaxed grains at the center.

Jan 1, 1944

By H. G. Doll

'This paper discusses a method and apparatus for determining the dip of formations traversed by a drill hole, by means of electrical measurements in the hole. The process consists in recording the Spontaneous Potentials present along three oriented generatrices in the hole. By comparison of the three curves thus obtained, after application of a correction factor to compensate for any deviations of the hole, the dip angle and the dip direction are determined. Excellent accuracy is obtained for dip angles over 10°. Because the method is simp1e and the apparatus rugged, the measurements are rapid and reliable; consequently, they can be made at all the levels that are of interest at any time after the well has been drilled. Mechanical cores are not needed to evaluate the dips. A convenient, time-saving procedure is to perform the dipmeter survey at the time the electrical log is taken, using for both operations the same cable and truck. Actual examples of results obtained in wells of the Gulf Coast area are given. Introduction The problem of determining the angle and direction of the dip of the strata traversed by a drill hole has practical interest, and sometimes vital importance, which need not be emphasized to the oil industry. The need for that type of information has existed ever since wells have been drilled. Certainly it has not subsided, in spite of the numerous inventions and improvements made in other fields of the art of drill-hole exploration. The few examples given in this paper are but illustrative of this fact. In the past, methods have been devised, and used, to solve this problem, but generally they have met with limited success, possibly because they failed more or less to answer the requirements of a modern age for fast yet accurate measurements. If accurate, the results were obtained at the cost of very tedious and lengthy operations. The new S. P.* dipmeter service offered to the oil industry is the result of exhaustive and in this particular field. In 1032 a dipmeter and electromagnetic teleclinom-eter service was made available. The apparatus employed then was of a rather delicate and costly construction, and the measurements had to be made with precautions sometimes difficult to secure on the rig. Although the information given by the electromagnetic dipmeter was limited to the direction of the dip, very interesting results were obtained in California, Trinidad, Venezuela, Rumania and, most notably, in the Netherlands East Indies.+ Apparatus The S. P. dipmeter surveys present none of the drawbacks mentioned above. The apparatus is rugged and free from constructional complications, therefore well adapted to field use. This, combined with the new, basically simple approach to the problem, explains the rapidity of execution of the measurements. The results are remarkably accurate and they are complete, giving the

Jan 1, 1946

By P. W. Ramsey, E. J. Boyle, E. A. Anderson

Only a few zinc-rich alloys are in commercial use today, and these depend largely upon solid solution effects for their desirable properties. Typical examples are rolled alloys containing about 1 Per cent of copper, with Or without additions of elements such as magnesium, and die-casting alloys containing about 4 Per cent of aluminum with small amounts of magnesium and sometimes copper." A number of elements are capable of forming alloys with zinc, Which do not enter into solid solution except in limited degree. The Present Paper considers One such system, zinc-titanium, in which alloys having potentially useful properties in the rolled form were found. Zinc-titanium System The zinc-rich portion of the zinc-titanium diagram, as determined by standard methods in this laboratory,3 is shown in Fig. I. The portion of the diagram of significance in the present work extends from 0 to about 0.5 per cent titanium. Gebhardt4 places the eutectic at 0.45 per cent, but the evidence in favor 01 the composition given in Fig. I is considerable. The solid solubility of titanium in zinc is very low indeed and possibly places these alloys in a somewhat different category from the commercial alloys previously mentioned. Alloy Preparation All of the alloys used in this work were prepared with titanium metal of 98.9 per cent purity. In most cases high-purity zinc (99.99 per cent) was used but sufficient work was done later to show that zinc of about high-grade composition would yield approximately equal results. Best practice in alloy manufacture seemed to be to prepare a zinc-titanium hardener by adding about 4 per cent of titanium metal to molten zinc and holding under a boric acid cover, with frequent stirrings, at 750°C, until the titanium had dissolved. The desired titanium content could readily be obtained in the final alloy by adding the calculated amount 01 this hardener. The alloys proved to be quite stable in composition, unless overheated, and, with reasonable temperature control, required no cover or flux to prevent loss of titanium content by oxidatioll, Hot-rollig Tests Three alloys containing, by analysis, 0.05, 0.12, and 0.23 per cent titanium were selected for preliminary study. Slab cross sections a a marked grain refinement* (Fig. 2) in the two alloys of highest titanium content. Cast unalloyed zinc has a columnar grain structure similar to that shown for the alloy of lowest titanium content but without the scatter of small equiaxed grains at the center.

Jan 1, 1944

By M. Prats, D. G. Russell

The performance of a well in a bounded, layered reservoir with interlayer crossflow has been investigated mathematically. The system studied comprises a centrally located well in a bounded cylindrical reservoir composed of two layers of contrasting physical properties. The reservoir contains a single fluid of small and constant compressibility. In the case of a well producing at constant pressure, the production rate of the crossflow system declines exponentially after the early transient behavior dies out. For wells which produce with constant rate, the pressure-time relationship is linear following the transient. For very early production time, the production rate of the two-layer crossflow system behaves as that of the two-layer stratified system (the case in which the layers are in communication at the well only). Except for early time, in most practical cases the performance of a two-layer reservoir with cross-flow can be duplicated by that of a single-layer reservoir. The equivalent single-layer reservoir must have the same pore volume and the same drainage and wellbore radii as in the two-layer case. In addition, the equivalent reservoir must have a "kh" (permeability x thickness) product equal to the sum of the "kh" products of the respective layers in the crossflow system. If the porosity and permeability distributions are known, the production and pressure behavior of a well with and without crossflow can be predicted. From a comparison of the observed pressure or production performance of a well and the theoretical behavior, the occurrence of interlayer crossflow can be detected. INTRODUCTION When flow is possible across the bedding plane from a low-permeability layer into an adjacent layer of moderate or high permeability, the earlier depletion of the more permeable layer will cause such flow to occur. If this situation exists, the oil recovery from tight layers can be appreciable; thus, the economic ramifications of interlayer crossflow are apparent. The possible importance and extent of flow between adjacent and connected layers — whether resulting from capillary, gravitational, or viscous forces — have been the subject of considerable speculation for many years. Jacquard1 presented a rigorous analysis of the crossflow due to single-fluid expansion occurring between two adjacent and connected layers when the well produces at constant rate. His presentation was entirely mathematical, however, and no numerical results from evaluation of the mathematical solutions were presented. Our objectives in the preparation and presentation of the present paper are essentially twofold— (1) to analyze the behavior of a well which produces a single compressible fluid from a bounded, layered reservoir with interlayer crossflow, and (2) to present practical numerical results and simplified formulas to facilitate engineering analysis of reservoirs with crossflow. The constant-terminal-pressure case was analyzed rigorously, whereas the constant-terminal-rate case was treated only for semisteady-state conditions. DESCRIPTION OF THE IDEALIZED TWO-LAYER RESERVOIR The reservoir to be studied is assumed to be bounded and cylindrical in shape, with a completely penetrating well at its center. The reservoir is composed of two adjacent horizontal layers between which fluid is free to flow. Each layer is assumed to be homogeneous, isotropic and completely filled with a fluid of small and constant compressibility. The total thickness of the reservoir is small enough

By Gregoire Gutzeit

The development reported in this paper was begun by the author a number of years ago, while he was a lecturer on complex chemistry and metallurgy at the University of Geneva, Switzerland, and in charge of that institution's research laboratory. Completion of the development and reduction to practice did not occur until last year at the Westport mill, laboratories and testing plant of the Dorr Company, where this method is now in general use for identifying and localizing the mineral constituents of both metallic and nonmetallic ores. It has proved to be a practical tool of the metallurgical staff at the Westport mill, devising unusual milling flowsheets for complex and refractory ore bodies. In a number of instances the findings have been successfully used as fundamental factors in the design and specification of complete metallurgical plants. Seven examples of the use of this method in solving practical milling problems are included in this paper. General Outline The microscopic study of an ore, at first only of scientific interest, has proved extremely useful both in practical geology and in ore dressing. The binocular magnifying lenses for rough observation of the products of an ore-dressing plant have been in use for a long time; but only within the last few years has a systematic microscopical examination of ore samples become a normal tool of any research laboratory dealing with ore-dressing problems. Such an investigation avoids considerable loss of time as well as empirical trials and useless experimentation. It will generally indicate the correct grinding and often will suggest the proper method of treatment. . The petrographic determination of transparent minerals in thin sections, or even in grains, has been perfected, and very accurate methods have been devised to meet any requirement, such as Feodorof's rotating stage on the petrographic microscope. Almost all transparent minerals can be positively identified by their optical properties; i.e., isotropism, anisotropism, color, pleochroism, refractory index, cleavage, crystal form, birefringence, and others. The identification of opaque minerals is a much more difficult problem and can be done only by using polished specimens. Unfortunately, most of the valuable metallic ores, and even some of the nonmetallic ones, are not transparent; therefore it has been necessary to develop a special technique for the determination of these minerals. Some optical properties—for instance, isotropism, anisotropism, color, cleavage, reflecting power-—are often adequate in roughly classifying the mineral. Only "reflecting power" is a measurable value, provided special photometric equipment (ocular photometer or Orcel's photoelectric cell) is available. The other optical properties mentioned are more or less relative,

Jan 1, 1943

By H. G. Doll

'This paper discusses a method and apparatus for determining the dip of formations traversed by a drill hole, by means of electrical measurements in the hole. The process consists in recording the Spontaneous Potentials present along three oriented generatrices in the hole. By comparison of the three curves thus obtained, after application of a correction factor to compensate for any deviations of the hole, the dip angle and the dip direction are determined. Excellent accuracy is obtained for dip angles over 10°. Because the method is simp1e and the apparatus rugged, the measurements are rapid and reliable; consequently, they can be made at all the levels that are of interest at any time after the well has been drilled. Mechanical cores are not needed to evaluate the dips. A convenient, time-saving procedure is to perform the dipmeter survey at the time the electrical log is taken, using for both operations the same cable and truck. Actual examples of results obtained in wells of the Gulf Coast area are given. Introduction The problem of determining the angle and direction of the dip of the strata traversed by a drill hole has practical interest, and sometimes vital importance, which need not be emphasized to the oil industry. The need for that type of information has existed ever since wells have been drilled. Certainly it has not subsided, in spite of the numerous inventions and improvements made in other fields of the art of drill-hole exploration. The few examples given in this paper are but illustrative of this fact. In the past, methods have been devised, and used, to solve this problem, but generally they have met with limited success, possibly because they failed more or less to answer the requirements of a modern age for fast yet accurate measurements. If accurate, the results were obtained at the cost of very tedious and lengthy operations. The new S. P.* dipmeter service offered to the oil industry is the result of exhaustive and in this particular field. In 1032 a dipmeter and electromagnetic teleclinom-eter service was made available. The apparatus employed then was of a rather delicate and costly construction, and the measurements had to be made with precautions sometimes difficult to secure on the rig. Although the information given by the electromagnetic dipmeter was limited to the direction of the dip, very interesting results were obtained in California, Trinidad, Venezuela, Rumania and, most notably, in the Netherlands East Indies.+ Apparatus The S. P. dipmeter surveys present none of the drawbacks mentioned above. The apparatus is rugged and free from constructional complications, therefore well adapted to field use. This, combined with the new, basically simple approach to the problem, explains the rapidity of execution of the measurements. The results are remarkably accurate and they are complete, giving the

Jan 1, 1946

By A. Romero-Juarez

This paper is concerned with the effect of propping-agent concentration on flow capacity of a fracture in the case in which there is embedment of the propping agent. Previous published studies have shown definitely that there is a relationship between fracture flow capacity and prop ping-agent concentration, and it has been shown that the theoretical results are confirmed by laboratory experiments. The problem of directly finding sand concentration for maximum flow capacity of a sand-propped fracture is solved, and formulas and charts are given to obtain this concentration under various conditions of effective overburden pressure, medium sand-grain diameter and rock properties. It is shown that, for the same effective overburden pressure and the same rock characteristics, optimum sand concentration in pounds per gallon does not depend on medium sand diameter. For conditions met in bydraulic fracturing operations, it is found that sand concentration in grains per square inch for maximum flow capacity varies within a wide range of values; this indicates the convenience of using data of fracturing pressure and rock characteristics for calculating sand concentration in order to achieve the best results in fracture treatments. INTRODUCTION It has been pointed out in the published literature1 that one important factor controls the success of a hydraulic fracturing operation — the propping of the fracture. The main effect of the propping agent is to hold the fracture open by means of the reaction forces that oppose the pressure due to the overburden. It is assumed in this paper that the propping agent is sand, that the grains are spherical and uniform in size, and that this sand is distributed in a monolayer in the fracture. The existence of a sand concentration value for maximum fracture flow capacity has been recognized since the publication of one of the first studies on the subject.2 In the reference cited, flow capacity was assumed to be proportional to the cube of the fracture volume per square inch not filled by sand. The obtained experimental curves relating to flow capacity and sand concentration had the same appearance as the curves obtained with the afore-mentioned assumption. Recent work3 has shown that fracture permeability, in the case of a monolayer, can be calculated accurately by means of a modified Kozeny-Cacman equation; thus, it can be shown that fracture pqmeability is a function of free volume in the fracture and of the rock and sand wet surfaces. The flow capacity of a fracture is dependent on the permeability of the fracture and on the fracture width. If all excessive quantity of sand is present in the fracture, its width may be large but its permeability i:; low due to the greater flow resistance; too few grains of sand per square inch are present in the fracture, sand embedment in the rock is greater and the width becomes small enough to appreciably decrease the rate of flow. To determine optimum conditions of flow, therefore, it is necessary to know the dependence of fracture width on density or concentration of propping agent. This relation is given in a study4 in which the approach to embedment is similar to the one made in a penetration hardness test of metal. With the equacions presented by Darin and Huitt,3 the number of sand grains per square inch that results in maxirnum fracture capacity can be determined graphically by plotting fracture capacity vs sand concentration. Since the relationship between fracture capacity and sand concentration may be considered known, one is led to formulate the analytical problem of directly determining sand concentration for maximum fracture flow capacity, in order to study the effect of the various quantities that come into the process. The solution of this problem appears to be interesting both from the viewpoint of fluid mechanics and from the practical viewpoint of oil production in hydraulic fracturing treatments. EQUATION FOR FRACTURE FLOW CAPACITY It can be shown3 that the fracture flow capacity of a monolayer is given by the following expression,

By F. L. Robertson, C. H. Bacon, J. W. Till

A description is given of the development of a process for making low sulphur steel on furnaces fired with 2 1/2 pet sulphur oil. Slag and metal are analyzed at melt. Slag weight is estimated. A simple method for calculating necessary lime additions for making 0.025 and 0.035 pct sulphur steel is given. DURING the last 15 years John Summers & Sons have been confronted increasingly by the problem of producing a low sulphur steel from high sulphur materials. The principles adopted, the processes used, the data collected on a furnace specially set aside to study this problem, and speculation on future developments are dealt with in this paper. This study is limited to two melting shops which make sheet steel only, of the following analysis: C, 0.06 pct; Mn, 0.33; S, 0.04, 0.035, 0.03, and 0.025; and P, 0.02 and 0.015. All the processes described have reference to the manufacturing of this steel and are not necessarily applicable, without modification, to other steels. The raw materials used are given in Table I. Development of Process About 1934, Schenck's work on phosphorus was applied to frame quantitative rules for the removal of phosphorus, with great success. We could however, neither in our own work nor in the voluminous literature, find any assistance to frame quantitative furnace rules to remove sulphur. Perhaps, we should have persevered with Schenck's outstanding chapter on sulphur in The Physical Chemistry of Steelmaking, but we missed the importance of one (Ss) sentence on p. 478. "Evidently this ratio -------- is [S] the important quantity to be considered from the point of view of chemical reaction; it is clear that the sulphur content of the steel alone, as frequently given in the literature cannot suffice for judging the success of the reaction unless special details are given regarding the sulphur charge and the amount of slag."' We were not however very successful in getting values for Schenck's "n" that agreed with (S) arrived at by our direct analysis. [S] In addition to Schenck's work much attention was given to V value. The formula selected for V was: (SCaO) — 1.57 (2 P2O5) (S SiO2) After plotting many charges a curve was obtained, based upon the relationship between the percentage sulphur in the finished steel and V value, Fig. 1. For a long time this was used as standard with about a 60 to 70 pct success on producer-gas fired furnaces, if all uprising scrap was used and no bought scrap used. An inspection of this curve shows clearly that it is not a quantitative manufacturing process, and that it was not sure enough to go to the trouble and expense of doing stage analysis for P,O,,

Jan 1, 1952

By M. R. J. Wyllie, H. W. Patnode

In the quantitative interpretation of electric log data it is essential to know the formation factor, defined as the ratio of the resistivity of the formation 100 per cent saturated with brine to the resistivity of the brine.' This concept implies that the formation factor for any given rock is constant irrespective of the resistivity of the brine or solution with which it is saturated. It is apparent that this can be true only when the rock matrix is wholly non-conductive. As reservoir rocks may contain clay or shale having an appreciable conductance one may expect these constituents to influence the determination of true formation factor. The formation factor may be theoretically derived from log data by dividing the resistivity of the mud filtrate invaded formation by the resistivity of the mud filtrate. Such a method of calculntion has implicit in it the assumption that the fluids in the invaded formation are wholly replaced by mud filtrate. that the solid matrix is non-conducting, and that the formation factor of the invaded zone is identical with the formation factor of the uninvaded zone. Since the validity of the first two basic assumptions regarding the insulating character of porous matrices and the displacement of the interstitial fluids in porous media do not appear to be fully established, the formation factors of a number of cores and clay slurries have been measured under conditions suitable for verifying the assumptions and the extent of any errors inherent in them. CORE STUDIES Apparatus and Procedure Resistivity measurements were made on short cylindrical permeable cores which had been previously mounted in lucite.2 The cores were clamped by means of insulated bolts between brass plates about 5 cm square and 1 cm in thickness. The plates were provided with a ring seal to prevent leakage between them and the core mount, and had a centrally located orifice so that fluids could be flowed through the mounted core. The brass mounting plates were used as electrodes and any current flow between them necessarily passed only through the constituents of the intervening core. Fluid saturation of the core, and fluid flow through the core, were effected by a centrifugal pump connected to the outflow end of the core, thus providing a differential pressure across the core of approximately one atmosphere. The procedure used was first to evacuate each core by means of the pump and then to saturate the core with an aqueous sodium chloride solution of known resistivity. The resistance of the core was measured and flow of the solution through the core continued for sufficient time to establish a constant resistance reading. After equilibrium had been reached with one solution, another sodium chloride solution of a different resistivity was flowed through the core and the flow continued until a constant resistance reading was again obtained. This procedure was continued until resistance measurements of the core had been made with a series of solutions within a salinity range from 1.0N NaCl to distilled water. The data obtained enabled the apparent formation factor of given porous rocks when saturated with fluids of different resistivity to be computed and also provided information regarding the ability of an invading fluid to displace interstitial water from a core. Results Berea Sandstone — The first core examined was a specimen of Berea sandstone." This core had been cut essentially parallel to the bedding for permeability studies. The core was clamped in the core holder and saturated with 1.0N NaCl solution and the resistance determined. It was subsequently flushed and the resistance measured when saturated in turn with 0.1N, 0.025N, 0.01N, .005N sodium chloride solutions and finally with distilled water. In flushing the core with each

Jan 1, 1950

By George Comstock

Results are given of scleroscope and Brinell tests on specimens of cast 10-per cent. aluminum bronze, quenched and reheated at various low temperatures. The scleroscope was not found as reliable as the Brinell machine for measuring the hardness, for the size of the piece tested seemed to affect the scleroscope results. The maximum hardness was obtained by quenching and reheating to between 315° and 370° C. Softening was produced by reheating above 370° or 400° C. A series of polished and etched microsections showed a more reddish color in those that had been reheated above 400° C., and a change in microstructure above 500° C. IT HAS been known for many years that the alloy containing 90 per cent. copper and 10 per cent. aluminum can be hardened, like steel, by quenching from a suitable temperature, and that the hardened alloy can be softened again by annealing or drawing the temper. It does not seem to be generally appreciated, however, that the effect of the first slight reheating after quenching is actually increased hardness, the softening effect not taking place until a certain temperature of "drawing" has been exceeded. This paper gives the results of a few experiments on various specimens of cast 10-per cent. aluminum bronze, quenched for maximum hardness, and subsequently annealed at different temperatures. The hardness measurements were made with both a scleroscope and a standard Swedish Brinell machine; some peculiarities of the scleroscope test on this material are described. The author is not aware of many previous investigations of the hardness of this alloy when quenched and drawn, but two important papers on the subject should be mentioned. The earliest was by Portevin and Arnou,1 in which it was stated that tempering quenched 10-per cent. aluminum bronze at 400° C. increased the hardness as compared with the quenched untempered alloy and that reheating above that temperature was necessary to obtain any softening effect.

Jan 7, 1924

By James H. Boettcher, W. Durand Eppler

INTRODUCTION In the second quarter of 1979, Rapid Mining Co., Inc. ("Rapid") inquired whether Crocker National Bank ("CNB") would provide $4 million in term loan financing to help ("Dry Creek") acquire the outstanding shares of the Dry Creek Coal Company ("Dry Creek") in West Virginia. Prior to approaching CNB, Rapid had sought financing with the assistance of a financial advisor from a number of commercial banks without success. A summary of the initial terms requested by Rapid is shown in Table 1 compared with the actual terms on which the transaction closed. It is not difficult to note that the two sets of terms differ significantly. This is often the case when financing requests based on the expectations and vision of a mine developer are juxtaposed with more pragmatic requirements of a commercial bank. The "art" and fund of structuring financing plans for mining ventures (highly leveraged acquisitions or grass roots) comes in working with mine developers to arrive at a final financial structure that meets their objectives and constraints as well as those of the bank or other financial institutions providing much of the financing. Beginning with the terms requested by Rapid and ending with the terms that closed the transaction, this article briefly describes the process we went through with Rapid Mining. The Seller and Buyer The Dry Creek Coal Company was established in 1961, after its owner acquired the coal leases from Republic Steel. Republic has mined the primary coal seam from 1948-1961. Dry Creek was owned as a subchapter S corporation (i.e., for federal income tax purposes, income is taxed at the shareholder level) and had been run on a low key basis. Since the company had virtually no debt and limited cash needs, the owner produced primarily when rail cars were available and income was required. Output was therefore erratic as is shown in the top of Table II, but the result was a profitable little company with an attractive free cash position. Because the owner wished to retire and enjoy his wealth in a more readily spendable form, he had put the mine, with stated recoverable reserves of approximately 13 million tons, up for sale. In contrast, Rapid Coal's investors consisted of a number of investors of disparate financial situations. They had agreed upon a primary objective of income maximization and planned an annual production rate of 120,000 TPA which they and the current owner believed realizable. The Formulation of a Financing Structure Figure 1 presents a simplified overview of the sequence of steps taken in the financing process which lasted approximately three months from start to finish. Since banks see many requests for funding and considerble time is required to follow up on each, an important step was determining, after a brief review of the materials provided to us, whether the basic "eonomic entity" was viable. In this case, the size and quality of the reserves, the inherent operating cost characteristics, the sales arrangements, the management/labor situation and Rapid's principles all appeared to be sound enough to warrant investing the time necessary to do a thorough analysis of the project. Once this decision was made, the evaluation and analytic process shown in Figure 2 was initiated. The first and most fundamental concern of any banker is whether the loan will be paid back as scheduled from the cash flow generated by the project. The amount of debt relative to the owner's equity is of course crucial in such a determination. Before the debt/equity issue was addressed, however, a number of more qualitative factors had to be studied and if

Jan 1, 1985

Jan 1, 1943