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By P. B. Baxendell

The appraial of producing properties and profitability ntzalysis of a proposed capital expenditure are based on the same principles. In both problems a projection of future cash income is. cornpared to one or more capital expenditures. Several different methods have been in use either to compute a price to obtain a given earning power on the investment or to compute the earning power which will result from a given capital expenditure. One of these, the "Average Annual Rate of Return" method, computes in a simple manner the ratio of the present value of the future earnings after amortization to the present value of the undepreciated balances of the investment over the life of a project. This method, not well known generally, appears to have some rather unique advantages in reducing the computation work required, eliminating trial-and-error solutions, and providing a more accurate answer when applied to oil industry investments subject to the unit-of-production basis of amortization. Its derivation is given and its versatility demonstrated in the solution of certain everyday investment problems. A number of charts, useful in applying this method to profitability analysis and appraisal work, are provided. The current trend in the market values of producing properties is shown. INTRODUCTION Making sound capital expenditure decisions requires an objective means of measuring the productivity of individual investment proposals. Since the best measure of the economic worth of such proposals is their ability to produce profits, it is common practice to grade proposed capital expenditures according to their annual earning power as a percentage of the outstanding capital. The same principles which govern the determination of the rate of return of proposed capital expenditures also apply generally to the problem of determining the appraisal value or purchase price of income-producing oil and gas properties. Both problems are of prime importance in the producing phase of the oil business, where management is faced daily with decisions to drill or not to drill certain development wells, or with the determination of the appraisal value of producing properties. The common feature in both problems is that a projection of future cash income is compared with a known or estimated capital investment to determine itsiearning power or annual rate of return. In the case of development drilling, the cost of the proposed well can usually be estimated with a fair degree of accuracy and the problem consists of finding the rate of return on the invested capital. In the case of appraising producing properties, on the other hand, the desired rate of return is usually known in advance and the problem consists of determining the purchase price which, for the given income projection, results in the fequired rate of return. Certain accounting procedures common to the oil and gas producing business make these two problems and their solutions somewhat different from corresponding problems in other industries, and, in certain ways, simpler. The main difference is in the amortization policy which, for oil and gas production, is frequently on a unit-of-production basis, compared to the amortization on a time basis used in many other industries. The purpose of this paper is to discuss briefly the various methods currently in use for the measurement of productivity of invested capital in producing properties and, in more detail, the derivation and application of what will be called the "Average Annual Rate of Return Method". This rather interesting and not too well known method has some very definite advantages in the solution of many problems common to the oil industry. For the sake of simplicity, federal income tax considerations have been disregarded in the examples used, since they do not affect the principles involved. The use of the production payment route in the sale or purchase of producing properties, which has been amply covered in many other publications, has also not been included in this analysis. METHODS FOK MEASUKING THE EARNING POWER OF INVESTED CAPITAL, Of the many different methods used to measure the earning power of invested capital, four are applicable to oil or gas production ventures. Depending on whether these four methods utilize one or two interest rates, and whether a fixed amortization pattern is used, they may be classified as follows.

By J. S. WARWICK, E. J. Browning

Ignitions continue to occur underground, sometimes leading to major explosions. There has been considerable effort in the UK, and more widely in the European Community, to formulate the best ventilation practices and other means of minimising these incidents. Practices and procedures to prevent ignitions are discussed in the light of the risks from current mining methods.

Jan 1, 1993

By C. E. Hennig

On January 1, 1961 there were 311 petroleum refineries in the United States with a total crude-oil throughput capacity of slightly more than 10 million barrels per day, according to the Bureau of Mines' annual survey. Compared with a year ago, this represents net increases of one in the number of plants and 109 thousand barrels per day in total capacity. Contributing to this increase was the completion of two new plants, one in Hawaii and another in Michigan, during the year. At the beginning of 1961 the industry was building facilities which will increase this overall crude capacity by 36,500 barrels per day. As part of its building program, it was also replacing 329,000 barrels per day of its present capacity. Of the total 10 million barrel per day installed capacity, the industry reported 380,000 barrels per day as being shut-down on January 1, 1961. This included 11,500 barrels per day considered inoperable without extensive reconditioning.

Jan 1, 1961

By T. B. Beeton

In view of the limited reserves of good-quality coking coals in South Africa, Iscor has been involved in direct reduction since the middle sixties. Since the early seventies, its interest in direct reduction was stimulated further by a swing towards' continuous casting, which, in turn, contributed to a shortage of the scrap supply for electric-arc-furnace (EAP) steelmaking. Rock engineering The First International Conference-Rock Enginet:ring and Excavation in an Urban Environmentorganized by The Institution of Mining and Metallurgy and the Hong Kong Section of the Institution, in association with the Hong Kong Institution of Engineers, will be held in Hong Kong from 23rd to 28th February, 1986. SPOTLIGHT on Gold Fields National Engineering Awards For the Gold Fields Foundation National Engineering Awards, each university affiliated to the South African Federation of University Engineering Students (S.A.F.U.E.S.) selected a candidate who, in their opinion, presented the most outstanding design project in their final year during 1984.

Jan 1, 1985

The surface properties of eight coal samples were studied by measuring contact angles, coal oxidation, equilibrium moisture and film flotation. The penetration tests were carried out with do de cane, while dodecane and MIBC were utilized in batch flotation tests and in the simplified release analysis. Coal floatability results from the properties of coal organic matter and coal liberation. While the wetting of coal by water seems to be determined by the surface properties of coal organic matter, wetting by hydrocarbons correlates very well with the content of coal mineral matter.

Jan 1, 1992

Safety rules for installing and using electrical equipment in and about coal mines covered in this information circular supersede those previously included in Bureau of Mines Bulletin 514, issued in 1952. This revision brings these rules up to date and more nearly in line with present operating and safety practices in the industry. The rules are intended to supplement existing Federal and State regulations, and no provision shall be construed to oppose or supersede any provisions of the Federal Mine Safety Codes, the Federal Coal Mine Safety Act, or the mining laws of any State. The rules were designed to permit progress, such as application of new or improved materials and equipment or use of new practices where these materials, equipment, or practices retain or improve the level of safety established by these requirements. It is hoped that they will fill the need for a concise edition for mine electricians and electrical engineers, especially those who do not have ready access to more detailed rules or codes.

Jan 1, 1964

Taking Up the AFN Corporate Challenge ?? About MAC ?? ?Towards Sustainable Mining? ??Mining and Aboriginal Peoples Framework ?? AFN-MAC Relationship ?? A New MAC Northern Initiative ??Social and Economic Progress ?? A View to the Future?

May 1, 2009

By R. L. Bolmer

Rapid depletion of our known mineral resources has stimulated exploration for new mineral deposit. Abandoned mines or prospects may prove to be commercial in today's economy. Often it is necessary to revaluate such properties. Some of these may be inaccessible because of caving of flooding. Many, however, remain in good condition, except that over the years the air in the workings has become depleted of oxygen. Each year the Bureau of Mines receives numerous requests for aid in entering old mines, the air in which is incapable of supporting life. Requests of many individuals who wish to examine or explore-such places with the help, of the Bureau's self-contained oxygen breathing apparatus have been denied because of the hazards involved in the use of this equipment for such purposes. The distance to be traveled in irrespirable gases may be too great for safety; under favorable conditions, a round trip of 2,000 feet from fresh air is the maximum distance that may be traveled.3/ The use of such equipment is hazardous unless a team of at least 5 men thoroughly experienced in its use is provided; and when extensive traveling from. a fresh-air base is required, a reserve team should be provided.3/ Usually, the apparatus is requested for use in exploring workings having only one surface connection, as mines having more than one opening usually are more easily ventilated;,and in some natural ventilation is sufficient or can be made so by cleaning out obstructed openings.

Jan 1, 1951

By Rex E. Loesby

The dramatic increase in molybdenum prices from the low of less than $2.50/lb in 1999 to more than $40/lb in 2005 has caught the attention of molybdenum mine owners and exploration project developers. Between 2005 and early 2007, prices pulled back and stabilized within a trading range of $25/lb to $30/lb. This 1,000 percent price increase has motivated most existing producers to expand production and is motivating those with molybdenum prospects to accelerate the development process for earliest possible production. It is still unknown how much new production will come from existing mines, how much production will be needed from new mines if demand continues to grow and how many potential new mines might be available to meet future demand. And of course, the billion dollar question is whether molybdenum prices will remain high, or will they fall back to the low levels seen during the 1980s and 1990s? This article attempts to answer these questions in a way that will help molybdenum project developers and financiers plan for the future.

Jan 1, 2007

By Corate L. Brierley

Low-grade porphyry copper ores containing chalcopyrite as the primary mineral was leached by two strains of acidophilic, thermophilic microbes belonging to the genus Sulfolobus. Leach tests were conducted in glass columns heated to 60-70° C. Pinto Valley and San Manuel ores sized to -1/2 inch + 50 mesh were effectively leached by the thermophilic organisms, but pinto Valley and Cyprus Bagdad ores sized to -2 inch + 1/2 inch resisted leaching. Aeration did not contribute measurably to bacterial copper extraction, since two columns, one inoculated and one sterilized, having a rest/ leach cycle without recurrent aeration exhibited copper extraction patterns similar to those of the aerated columns. Distilled water can be substituted for 9K medium without diminishing copper extraction. Decreasing the pH of the leachate to about 1.8 enhanced the extraction of copper from pinto Valley ore with the thermophilic microbes. Thiobacillus ferrooxidans was found to be relatively ineffective at copper extraction from pinto Valley ore. Of eleven solvent extraction reagents tested, Adogen 364 and Warsol at concentrations of 0.1% and 0.012 were inhibitory to oxygen uptake by the two Sulfolobus strains. Di-2-ethyhexyl phosphoric acid at concentrations of 0.1%, 0.01% and 0.001% were totally inhibitory to the respiration of both organisms.

Jan 1, 1979

By Charles H. Atkinson, Robert T. Johansen

Tremendous volumes of petroleum ( crude oil and natural gas ) at present cannot be recovered economically . The feasibility of using nuclear explosions for production stimulation therefore has been investigated . Data from underground nuclear tests conducted by the Atomic Energy Commission were reviewed , and the physical effects were evaluated for stimulating petroleum production . Calculations of the effect on ultimate recovery of increasing reservoir temperature with nuclear explosives showed disappointingly small increases . Production increases caused by fracturing of massive low- permeability reservoirs appear technically and economically promising . Petroleum reservoirs that might be converted from submarginal to commercial production are being located and evaluated as to potential reserves and as a location for a field test .

Jan 1, 1964

By G. W. Jones

Among its investigations into the prevention of waste in production and use of oil and gas, the Bureau of dines has made considerable study of the efficient utilization of gasoline and by-product distillates in motors, this being done chiefly by measuring and analyzing the exhaust gases therefrom. A number of reports3 of a highly practical nature have been published and are available on this subject. The results of these tests have shown that the average motor vehicle wastes approximately 30 per cent of the heat value of the fuel used, as incomplete combustion products - carbon monoxide, hydrogen, and methane, These unnecessary large heat losses are mainly due to improper carburetor adjustment, and by proper¬ly adjusting the carburetors for maximum power and efficiency a large part of this heat loss can be eliminated. This in turn results in an increased mileage per gallon of fuel used.4

Jan 1, 1924

By Met B

IN the followmg paper an account is given of work performed by the author for the purpose of sampling a slime dam on the leases of the North Mount Farrell Co. N.L., at Tullah, Tasmania, during the summer of 1925-26.For convenience the paper is divided into sections as follows:1. THE MINE2. THE SLIME DAM3. SURVEY OF THE DAM4. BORING OF THE DAM(a) INTRODUCTION(b) 1ST METHOD(c) 2ND METHOD(d) 3RD METHOD(e) 4TH METHOD(f) GENERAL NOTES5. CONCLUSION

Jan 1, 1928

By David J. Barr

Public Law 91-190 - January I, 1970 states that, "The purposes of this Act are: To declare a national policy which will encourage productive and enjoyable harmony between man and his environment; to promote efforts which will prevent or eliminate damage to the environment and biosphere and stimulate the health and welfare of man; to enrich the understanding of the ecological systems and natural resources important to the Nation; and to establish a Council on Environmental Duality." The administrative aspects of this National Environmental Policy Act of 1969 have in essence established the requirement that all agencies of the Federal government assess the consequence of their actions with an Environmental Impact Statement. Furthermore, five states have already enacted environmental legislation, and others will surely follow. The Environmental Services Project Director for Dames and Moore has stated in the June issue of that company's publication, "Elements," that, "The nuclear power industry has perhaps been most affected to date by the Act [NEPAL but recent court decisions, legislative trends and general public concern will accelerate the spread of the Act's impact on other industries. Mining and petroleum are already involved in environmental affairs." There can be little doubt that within a very short time all environmental aspects of the minerals industry will be strictly regulated and monitored by some agency of Federal and/or state government. Indeed, it is probable that any future effort to extract natural resources will be contingent upon a favorable review of an Environmental Impact Statement. It is also quite possible that continuation of present operations will have to be justified on the basis of proof of an acceptable environmental impact. It is the objective of this paper to present some ways in which remote sensing technology can be applied toward an efficient collection of environmental data necessary for the preparation of an Environmental Impact Statement.

Jan 1, 1972

By R. F. Droullard

The Bureau of Mines has developed test facilities for use in a research program that deals with radiation hazards in mining. This report describes the radon test chamber located at the Denver Research Center and the Twilight experimental mine located near Uravan, CO.

Jan 1, 1984

By L. S. Darken

Measurements of the electrical conductivity, the thermal electromotive force, and the deviation from stoichiometry by thermogravimetry were made on ferrous oxide (wüstite) single crystals as well as on poly-crystalline samples in the temperature range of -900" to 1330°C. In the region defined by T 2 1000°C and 1.05 5 O/Fe 5 1.10 the electrical conductivity was shown to be proportional to the sixth root of- the oxygen partial pressure and to be linearly dependent on the deviation from stoichiometry. The absolute Seebeck coefficient of single and polycrystalline wüstite was shown to be independent of temperature in the above region and a p to n transition of the Seebeck coefficient was observed at O/Fe = 1.09 in polycrystalline wüstite. Analysis of the results showed that the predominant defects in wüstite in the above region were doubly ionized cation vacancies. The analysis also ruled out the existence of complexes of the type postulated by Roth, except that below 1000°C there is some evidence of 'association of defects. Of the three oxides of iron (FeO, Fe3O4, Fe2O3) only FeO (wüstite) can exist within a wide range of the ratio O/Fe. This has been shown by several investigations of the phase diagram using for instance chemical analysis of quenched samples'-4 or thermogravimetric measurements. 5,8 Darken and Gurry's1 data for example in the temper- ature range 1100o to 1400°C show that the lowest O/Fe ratio obtainable for FeOl +. is about 1.045 and that the existence range extends to O/Fe = 1.20 at 1400oC. On the basis of detailed analysis of thermogravimetric measurements made by Vallet and Raccah6 the existence of three varieties of wüstite at elevated temperatures was suggested by these authors and by Kleman. It is well-established that wüstite has a NaCl structure with vacant cation sites.3, 8 From a neutron-diffraction study of wüstite samples quenched to room temperature Roth9 concluded that defects in wüstite are mostly complexes composed of two cation vacancies and one interstitial cation in a tetrahedral site. The atomic arrangement in the vicinity of such a defect is similar to that in magnetite, where each occupied tetrahedral site is surrounded by four vacant octahedral positions disposed at the corners of a tetrahedron, so arranged that each vacancy is shared by two tetrahedral cations. Thus there is an average of two vacancies per interstitial. Recent X-ray diffraction measurements made by Smuts10 on quenched wüstite samples confirmed the results of Roth's neutron-diffraction experiments. Roth's model of defects in FeO can be regarded as a solid solution of Fe3O4 in FeO; salmon1' used this defect model to calculate the activity of Fe3O1 in FeO at high temperature and claimed good agreement with the results obtained experimentally by Darken and Gurry.' Each missing cation in wüstite is accompanied by two trivalent cations, thus preserving charge neutrality. The "holes" which differentiate between the Fe 2+ and Fe3' states of the ions in octahedral positions can overcome the attractive field of the cation vacancies, and are then free to move through the crystal as charge carriers. A similar picture holds for COO, NiO, andMnO.l2, 13 Localization of the charge carriers in transition

Jan 1, 1968

By S Utili, A Agosti

The Overall Slope Angle (OSA) of pitwalls plays a crucial role in the financial return of an open pit mine. In current practice, pitwall profiles are designed to be planar in cross-section within each rock layer, ie the profile inclination across each layer tends to be constant. A new slope design software, OptimalSlope, has been recently proposed to determine the geotechnically optimal profile shapes for the pitwalls of mines. OptimalSlope seeks the solution of a mathematical optimisation problem where the overall steepness of the pitwall to be designed is maximised for an assigned stratigraphy, rock properties (unit weight and strength) and Factor of Safety. The geometry of the benches is provided as input to OptimalSlope. The results obtained so far on three mine case studies in isotropic rock masses (Utili et al, 2022; Agosti et al, 2021a, 2021b) show that optimal profiles are up to 5° steeper than their planar counterparts – ie the planar profiles exhibiting the same FoS – leading to realising significant saving on waste rock and as a consequence Net Present Value increments and carbon footprint reductions. OptimalSlope algorithms have been modified to deal with anisotropic rock masses characterised by direction dependent shear strength. In the paper, the case of rock masses in banded iron formations (BIF) is tackled. A data set of anisotropic rock shear strengths typical of Western Australia is considered. The Snowden modified nonlinear model was employed to characterise the anisotropy of the rock mass shear strength. From the OptimalSlope simulations performed emerges that optimal pitwall profiles can increase significantly the Overall Slope Angle in comparison with planar profiles featured by the same Factor of Safety. LEM stability analyses of all the profiles were also performed by Rocscience Slide 2 to independently verify the FoSs of the optimal profiles obtained.

Nov 29, 2022

By R. J. Sweigard

Productive and beneficial use of reclaimed surface-mined land is a concern of industry, government, and the general public. An investigation was conducted of current mined-land planning practices to aid in the development of a procedure for evaluating postmining land use potentials. This investigation considered both the industry and public planning approach to mined-land planning and was based primarily upon three case studies conducted in various regions of the United States. The site planning process that was developed during the investigation is iterative in nature and has been designed specifically for the mining industry. It centers around preliminary studies and data collection, development of land use alternatives, and the evaluation of alternatives. Use of this process facilitates the evaluation of economic, environ- mental, and social impacts of postmining land use alternatives. In this paper, the process is presented along with a description of its development, application, and significance.

Jan 1, 1984

By Thomas M. Barczak

Advancements in support technology have occurred to a large extent because of the demands of the mine operators. Shield supports are no exception. The most notable changes in shield technology in the past decade have been increases in shield capacity and life expectancy, which have increased by a factor of 4 and 7 respectively since the inception of the shield support 25 years ago. The purpose of this paper is to set goals for the future generations of longwall shields. These goals include: (1) 100,000 cycle life expectancy, (2) improved hydraulic diagnostic capability, (3) smart load control with adjustable setting pressure algorithms, (4) composite material design to reduce weight and increase shield width, (5) constant set leg cylinder design, (6) improved joint design to reduce wear and stress, (7) advancements in leg cylinder socket design, and (8) an instrumented shield to measure in-service structural component loading. These design issues will continue to push the envelope in longwall shield technology that has provided the safest and most productive mining system employed in the history of mining. In preparation for this, a historical examination of shield failures is made and recent trends in shield design are evaluated. Design practices to improve structural margins of current designs are also addressed.

By Gerald T. Homce

Data from the U.S. Bureau of Labor Statistics show that 89 water well drillers died on the job between 1992 and 2002, and 28 of these deaths were electrocutions (Figure 1). In fact, elec­trical accidents are the leading on-the-job killer of water well drillers. The use of electricity is such an integral part of our lives that we usually take it for granted, but if we don?t understand or choose to ignore the hazards associated with electricity, the results can be deadly. Why is electrical shock so dangerous? If the voltage (of a shock) is sufficient to drive electrical current through your body, just 10 milliamps of cur­rent (1000 milliamps = 1 amp) can cause muscles to contract and prevent you from releasing an energized wire or tool in your grip. As little as 30 milliamps of current can paralyze your breathing, and 75 milli­amps can cause your heart to stop pumping blood (ventricular fibrillation). As a comparison, a small bedroom night-light draws about 30 to 60 milliamps. Other factors influence how severely you?ll be shocked if you touch a live electrical circuit, such as the path electrical current takes through your body and how long it flows, as well as your body weight. How much voltage is needed to drive electrical cur­rent through your body? Not much! Generally, any power source at 50 volts AC or higher is considered dangerous.

Jan 1, 2008