Search Documents

By John C. Branner

Five of the geologic horizons that yield oil in other parts of the world are represented in Brazil; namely, the Devonian, Carboniferous, Permian, Cretaceous, and Tertiary. Thus far, the first two have shown no evidences of being oil bearing within Brazilian territory. Not enough exploring has been done to permit trustworthy comparisons of the relative importance of the Permian, Cretaceous, and Tertiary as oil-bearing horizons in this country. The most important, indeed almost the only, information available relates to the locations of the areas and to the structural features of the several horizons. The theories regarding the physical conditions under which these rocks were laid down, however, I regard of the utmost importance. Permian Rocks of Permian age cover an enormous area in Brazil, extending from Rio Grande do Sul to Maranhao on the north, and to Matto Grosso on the west. These Permian rocks in many places are known to include oil-bearing shales and in some locations contain small veins of gilsonite. The geologic map of Brazil shows that the Permian area is widely distributed, but there is considerable doubt about the origin of some of the rocks. Some of the lower Permian beds in southern Brazil contain marine fossils, but in Minas no fossils have as yet been found in them, and in Bahia, at only one locality have a few Permian plants been found. Indications of oil have been found in the states of Sa0 Paulo, Parana, and elsewhere farther south, but wells drilled in the Permian of SaO Paulo near the Morro do Bofete did not find oil. One well has been started, by the Brazilian Government, in the Permian of Parana near Marechal Mallet, close to latitude 26" south, but thus far oil has not been found.

Jan 1, 1923

By John C. Branner

Five of the geologic horizons that yield oil in other parts of the world are represented in Brazil; namely, the Devonian, Carboniferous, Permian, Cretaceous, and Tertiary. Thus far, the first two have shown no evidences of being oil bearing within Brazilian territory. Not enough exploring has been done to permit trustworthy comparisons of the relative importance of the Permian, Cretaceous, and Tertiary as oil-bearing horizons in this country. The most important, indeed almost the only, information available relates to the locations of the areas and to the structural features of the several horizons. The theories regarding the physical conditions under which these rocks were laid down, however, I regard of the utmost importance. Permian Rocks of Permian age cover an enormous area in Brazil, extending from Rio Grande do Sul to Maranhao on the north, and to Matto Grosso on the west. These Permian rocks in many places are known to include oil-bearing shales and in some locations contain small veins of gilsonite. The geologic map of Brazil shows that the Permian area is widely distributed, but there is considerable doubt about the origin of some of the rocks. Some of the lower Permian beds in southern Brazil contain marine fossils, but in Minas no fossils have as yet been found in them, and in Bahia, at only one locality have a few Permian plants been found. Indications of oil have been found in the states of Sa0 Paulo, Parana, and elsewhere farther south, but wells drilled in the Permian of SaO Paulo near the Morro do Bofete did not find oil. One well has been started, by the Brazilian Government, in the Permian of Parana near Marechal Mallet, close to latitude 26" south, but thus far oil has not been found.

Jan 1, 1923

By John Branner

FIVE of the geologic horizons that yield oil in other parts of the world are represented in Brazil; namely, the Devonian, Carboniferous, Permian, Cretaceous, and Tertiary. Thus far, the first two have shown no, evidences of being oil bearing within Brazilian territory. Not enough exploring has been done to permit trustworthy comparisons of the relative importance of the Permian, Cretaceous, and Tertiary as oil-bearing horizons in this country. The most important, indeed almost the only, information available relates to the locations of the areas and to the structural features of the several horizons. The theories regarding the physical conditions under which these rocks were laid down, however, I regard of the utmost importance. PERMIAN Rocks of Permian age cover an enormous area in Brazil, extending from Rio Grande do Sul to Maranhão on the north, and to Matto Grosso on the west. These Permian rocks in many places are known to include oil-bearing shales and in some locations contain small veins of gilsonite. The geologic map of Brazil shows that the Permian area is widely distributed, but there is considerable doubt about 'the origin of some of the rocks:. Some of the lower Permian beds in southern Brazil contain marine fossils, but in Minas no fossils have as yet been found in them, and in Bahia, at only one locality have a few Permian plants been found. Indications of oil have been found in the states of São-Paulo, Paraná, and elsewhere farther south, but wells drilled in the Permian of São Paulo near the Morro do Bofete did not find oil. One well has been started, by the Brazilian government, in the Permian of Paraná near Marechal Mallet, close to latitude 26° south, but thus far oil has not been found.

Jan 6, 1922

By Charles M. Rolker

(Read at the Philadelphia Meeting, February, 1878.) THE Mariposa estate, a grant made by the Mexican Government to Juan B. Alvarado, during the time when California was still under the dominion of Mexico, was purchased in 1847 by J. C. Fremont, and the United States patent issued to him in 1856. By sale, or its equivalent, money advanced, the property came into the hands of the Mariposa Company, June 25th, 1863, and through a varied existence of work and temporary inactivity, has as yet been kept as an undivided property, and rests at present with the Mariposa Land and Mining Company of California. I pass over this period of 15 years without giving the history of the ups and downs of the estate, partly because it is familiar to many, and also because I think in such a case this paper would assume too much the character of a narrative. The estate is situated in Mariposa County, California, about 170 miles southeast of San Francisco. It begins in lat. 37° 26’ 38" - north, and long. 119° 55' west, and runs 6 miles north; thence 6 1/2 miles west; thence 5 miles northwesterly towards the Merced River; thence 8 1/2 miles southerly; thence 3 miles easterly; thence 1 mile southerly; thence 2 miles easterly; thence 2 miles southerly; thence 2 miles easterly; thence I mile southerly; thence 2 miles easterly; thence 1 mile northerly, and thence 2 miles easterly to the place of the beginning; embracing 44,387 acres (70 sq. miles) more or less. To describe this vast estate in detail as to its full geology, its numerous quartz veins, its many facilities to exploit them and work them by cheap methods, would lead me further than I intend to go at present, and I will content myself to describe the latest workings of the company and its immediate field of operations. As long ago as 1860 the late Dr. Adelberg advised the running of an adit from the northwestern edge of the estate at Benton Mills on the Merced River. His object was to undercut the deepest workings of the then paying mines on the estate-the Pine Tree and Josephine. Following this advice, the tunnel known as "River Tunnel" was commenced. Its entrance is in S. 5, T. 4, S. R. 17 E. It is run in

Jan 1, 1878

By A. W. McReynolds

E. OROWAN*—I observed the phenomenon of jerky yielding many years ago with zinc25 and cadmium single crystals. A significant point was that the jerks occurred not only when the stress was raised but also (sometimes, after a pause of many minutes during which no trace of creep was observable) at constant stress. The phenomenon may be closely linked with the inertia of the testing machine and of the specimen, although the inertia alone cannot account for it. If, during the test, the resistance of the material to plastic deformation suddenly diminishes while the applied force remains constant, a sudden deformation follows until the yield stress has risen, by strain hardening, to the level of the applied stress (= the value of the previous "upper yield point."). When this is reached, the rate of deformation has attained a maximum value because, up to this moment, the applied force was higher than the plastic resistance of the specimen, and the difference was used for accelerating the moving parts of machine and specimen. The kinetic energy accumulated is now transformed into plastic work by further deformation; that is. the deformation overshoots the point at which the plastic resistance equals the applied static force. When the kinetic energy has been used up, therefore, we are left with a specimen the yield stress of which is higher than the applied stress, and no further deformation can occur (apart from a little creep) until either the applied stress has been raised to the new yield stress level, or the yield stress has fallen by thermal recovery to the level of the applied stress. While this occurs, a new upper yield point can develop, for example, by precipitation.26

Jan 1, 1950

By Reynold Q. Shotts

Data are presented which show that fractions of varying densities-from the same coals are oxidized at different rates by nitric acid. From oxidation data, the approximate quantity of "bright" and "dull" components may be calculated. Definite relationships between oxidation rate and rank are shown for density fractions from at least two bituminous coals.

Jan 1, 1950

By Westwater, J. S.

The Mather mine of The Negaunee Mine Co. embraces nearly all of Sections 1 and 2, T47N, R27W. within the limits of the cities of Negaunee and Ishpeming on the Marquette iron range of Michigan's Upper Peninsula. Operations of the Negaunee Mine Co., the stock of which is jointly owned by Bethlehem Steel Co. and The Cleveland-Cliffs Iron Co., are under the direction of the latter company. The opening of the Mather mine was described by C. W. A1len. Mather "A" shaft was completed to an initial depth of 2352 ft in early 1943. The shaft capacity of over one million tons yearly is in prospect of being realized by orderly development and mining, and sinking of the second or "B" shaft then started in accordance with previous planning. Mather " B, " also a vertical shaft, was designed as a twin to Mather "A" shaft and the sinking technique developed at Mather "A" was utilized in "B" shaft operation.

Jan 1, 1949

ALEXANDER, JOHN S, M,'74-6,'81-3 ASHBURNER, C A, M, '85-7 ASMUS, GEORGE, Dl, '78-80 BACON, D H , M, '00-2 BAYLES, JAMES C , M,'80-2,'91-3 P, '84-5, V,'88-9 BIRKINBINE, JOHN, M, '83-5, V, 'S7-J, P, '91-2 BLAIR, THOMAS S , M, '74-43 BLAKE, WILLIAM P , V,'71-4,'76-7,'05-6 BLANDY, JOHN F, V,'71-3,'78-9 BLOW, A A, C, '05-7 BOWIE, A J , JR, V,'93-4 BRAMWELL, J H , A1, '89-91 BROOKS, THOS B , M, '72 BRUNTON, D W , V, 97-8 BUCK, STUART M , M, '83-5 BURDEN, JAMES A, V,'80-1 BURNHAM, WILLIAM, M, '82-4. CAMPBELL, H H, M, '93-5 CHAMBERLAIN, H S , V, '96-7 CHANNING, J PARKE, V,'08 CHRISTY, S B , V. '91-2, '07-8 CHURCH, JOHN A, M, '79-8l,'94-6, V, '07-8 COGSWELL, W B, V, '74-5,'86-7

Jan 1, 1910

'T. C. MERRIMAN, New Haven, Conn. (written discussion *).-This most interesting paper gives much carefully obtained and valuable data. However, there are two points in connection with the commercial application of such data that might possibly be a source of trouble and mis-understanding. In the first place, the examination of thin sections of annealed brass, subjected to standard Brinell test.(500 kg. on a 10-mm. diameter ball) at thicknesses from 0.075 to 0.150 in. (1.9 to 3.8 mm.) indicates that cold work has been performed on the specimen during the application of the load sufficient to extend way through the section, and have the hardness of the metal affected by the backing. If the usual steel support is used, this effect is very evident. If a piece of soft brass is used as a support, there is an indentation in the surface of the support accompanied by a bulge on the under side of the tested specimen opposite the impression made by the 10-mm. ball. The result is that Brinell specifications (governmental or otherwise) on stock for a certain purpose may not be fair in all cases, since manufacturers, owing to differences in equipment, etc., may not all use precisely the thickness and conditions of stock on which the Brinell specifications were based. This would mean that the government Brinell specification might not give them the temper of stock best suited for their manufacturing methods. The concluding paragraph of this paper, stating that "the hardness of cartridge brass may be determined with greater accuracy by the Brinell hardness measurement than by attempting to judge it from the grain size" appears to be in line with the movement of the last year or so among brass manufacturers toward substitution of the Brinell test for microscopic examination as an acceptance test on cartridge brass. The statement may he strictly true that the Brinell test is the best test for hardness, but it is not, as the statement might readily be construed, a sufficient test of suitable condition. For instance, some cartridge brass might accidentally have been overheated to a point where it would be distinctly unsafe to use for the manufacture of small arms cases and then be so rolled (reduction 3 to 5 per cent.) as to pass perfectly proper Brinell specifications. Under such conditions the microscope would reveal its unsuitability where the Brinell test had failed so to do.

Jan 4, 1919

ALEXANDER, JOHN S, M,'74-6,'81-3 *ASHBURNER, C A, M, '85-7 ASMUS, GEORGE, Dl, '78-80 BACON, D H , M, '00-2 BAYLES, JAMES C , M,'80-2,'91-3 P, '84-5, V,'88-9 BIRKINBINE, JOHN, M, '83-5, V, 'S7-J, P, '91-2 BLAIR, THOMAS S , M, '74-43 BLAKE, WILLIAM P , V,'71-4,'76-7,'05-6 *BLANDY, JOHN F, V,'71-3,'78-9 BLOW, A A, C, '05-7 BOWIE, A J , JR, V,'93-4 *BRAMWELL, J H , A1, '89-91 BROOKS, THOS B , M, '72 BRUNTON, D W , V, 97-8 BUCK, STUART M , M, '83-5 *BURDEN, JAMES A, V,'80-1 BURNHAM, WILLIAM, M, '82-4. CAMPBELL, H H, M, '93-5 CHAMBERLAIN, H S , V, '96-7 CHANNING, J PARKE, V,'08 CHRISTY, S B , V. '91-2, '07-8 CHURCH, JOHN A, M, '79-8l,'94-6, V, '07-8 COGSWELL, W B, V, '74-5,'86-7

Jan 1, 1910

By HENRY M. HOWEL

1. Introduction.-The first part of this papers treats of the causes and the restraining of piping in steel ingots; the second& considers the causes and the restraining of -segregation; and the third proposes certain precautions in engineering specifications concerning these two defects. Into their causes I have looked carefully, with the purpose of arriving at rational methods of restraining them, and at efficient ways of detecting. and measuring the harm which they cause, so as to benefit the public by reducing this harm at once effectively and with the least expense to the manufacturer, and therefore in the end with the least expense to the consumer. In Part I., I infer that the pipe is chiefly due to what I, call the virtual expansion of the outer walls of the ingot in the early part of the freezing. I find that the upper and smooth-faced part of the pipe probably forms while the interior is still molten, but that the lower, steep, and crystal-faced part probably forms in metal which is already firm. Of the five causes which may co-operate to limit the depth of the pipe, I find that three-blow-holes, sagging, and the progress of freezing from below upwards-are usually effective. I find that the pipe may be lessened by casting (1) in wide ingots,; (2) in sand molds, especially if these are pre-heated (this is rarely expedient); (3) at the tops instead of at the bottom; (4) slowly; (5) and with the large end up; (6) by the use of a sinking-head or other means of retarding the cooling of the top; (7) by permitting blow-holes to form; and (8) by liquid compression.) Most of these I consider in some detail, and in particular I dwell on the advantages of casting with the large end up, and I propose certain administrative arrangements to permit this.

Mar 1, 1907

Jan 1, 1967

By H. O. HOPMAN

(Canal Zone Meeting, November, 1910.) I. INTRODUCTION. THE substance of this paper was prepared for the Seventh International Congress of Applied Chemistry, held in London, May, 1909, under the title, Some Developments in Blast-Roasting. In the absence of the author, a -short abstract of the paper was read, and the abstract only will appear in the proceedings of the congress. The present paper has been partly rewritten and considerably enlarged by information gained since the original was prepared ; also some illustrations have been added. Blast-roasting' is a generic term for the process of forcing air through finely-divided. metallic sulphide with the object of roasting and agglomerating in a single operation. At first the process was confined to a galena-concentrate ; lime, limestone, or gypsum was added, to serve both as a diluent to keep separate the particles of galena that they might be thoroughly oxidized, and as a flux that the partly-roasted ore might be agglomerated by the formation of some slag. Later it was extended to treat other metallic sulphides. The leading processes were the Huntington-Heberlein and the Savelsberg of Europe, and the Carmichael-Bradford of Australia. In the United States and Canada, the Huntington-Heberlein process has found application in some instances with galena-concentrates, for which it was originally intended; but this class of ore is not often treated alone, hence the process has had to be modified to suit conditions. The Savelsberg process has been transplanted to this country in about its original form. The Carmichael-Bradford is not used at present. The changes called for in the Huntington-Heberlein process to adapt it to the class of lead-bearing ores usually smelted have been the 1 A. S. Dwight, Engineering and Mining Journal, vol. lxxxv., No. 13, p. 649 (Mar. 28, 1908).

Jun 1, 1910

By C. R. Wohrman

A MELT of pure electrolytic iron with about 0.4 per cent. sulfur and 7 per cent. manganese was prepared in connection with a study of inclusions in iron. The alloy darkened rapidly when etched with a 10 per cent. alcoholic solution of nitric acid, and microscopic examination revealed the presence of a semimartensitic, semi-Widmanstättian structure (Figs. 1 and 2) closely resembling the structures found by Benedicks in his artificially prepared "meteoric iron." 1 The structures found by Benedicks were readily explained by the presence in his alloy of the two well known iron-nickel solid solutions, taenite and kamacite, and of their eutectoid (?) aggregate, plessite. By analogy, one would infer the existence of similar phases in the iron-manganese alloy just described, such as inference being strengthened by the similarity displayed in many ways by nickel and manganese in their effects on iron. IRON-MANGANESE ALLOTS ARE REGARDED AS HOMOGENEOUS Heterogeneity of iron-manganese alloys has not been recognized heretofore, judging from the data of standard metallographic books and those of original papers. In fact, iron and manganese are quite generally regarded as completely miscible in the solid state. Dr. Rosenhain,2 for example, writes: Alloys of group (a), of which those of gold-silver, iron-manganese, and copper-nickel are examples, when allowed to crystallize sufficiently slowly to attain their condition of final equilibrium, present a microstructure exactly similar to that of a pure metal-the homogeneous character of the molten solution is in that case so completely maintained that the microscope cannot detect the presence of any second constituent.

Jan 1, 1927

By Kenneth K. Humphreys

INTRODUCTION What is automation? Why automate? Webster's New Collegiate Dictionary defines automation as "the automatically controlled operation of an apparatus, process, or system by mechanical or electronic devices that take the place of human organs of observation, effort, and decision." This definition gives an implied answer to the second question, "Why automate?" Automation, automatic control devices, and process control equipment receive their justification in supplementing or replacing manpower, which results in decreased operating costs. In the past, processes were operated with the minimum amount of instruments needed merely to guide operators. Processes were manually con- trolled by the operator on the basis of simple temperature, pressure, flow, and level indications on a panel. Today the tendency is to design a new plant to operate in a fully automatic manner according to a preset pro- gram utilizing a minimum of manpower. In addition to this direct cost reduction in manual labor, increased equipment capacity results from uniformity of flow and uniform control of process variables. This control eliminates or minimizes surges and permits equipment to be operated at or near its ultimate capacity and, for a given material throughput, permits the use of smaller process equipment. Automatic control, therefore, be it in the field of coal processing or in any industrial field, is simply a problem of economics. Control equipment is justified in terms of its contribution toward increasing productivity, increasing profit margins, or producing a new and salable product at a profit. Instruments and control devices can be divided into two general groups: (1) units which measure and (2) units which both measure and control a process variable.

Jan 1, 1979

Born, March 28, 1853 Died July 23, 1916 On July 25, 1916, the Board of Directors adopted the following minute and directed that it be entered upon the records of the Board & published in the Bulletin of the Institute, and thereof be sent to the family of Mr. Kirchhoff: Charles Kirchhoff was one of the oldest, most widely known and most highly esteerned members of the American Institute of Mining Engineers. On his return in 1875 from a European course of study, to begin a highly successful professional career, he joined the Institute, then just commencing to acquire both national and international recognition. He became at once, and-for more than 40 years continued to be, its earnest , and active supporter, serving it as Manager, Councilor or Director for terms aggregating 9 years,-as Vice-President for 2 years, and twice as President for a year. During the critical period of the erection of the United Engineering Society's building, and the transfer of the Institute to permanent head-quarters therein, Mr. Kirchhoff was its efficient representative in the United Engineering Society, and on the Building Committee. In 1910, amid the congratulations of colleagues, employees, and innumerable friends, Mr. Kirchhoff retired from active business as Vice- President and General Manager of a great technical publishing company. Yet he sacrificed of his well-earned leisure yet one more year, to serve the Institute as President through 1911.

Jan 9, 1916

Jan 1, 1966

By Elmars Ence, Harold Margolin

The Ti-Fe and Ti-Fe-0 systems were re-examined because of the controversy regarding the existence of Ti2Fe, and to consider all available data points to the existence of Ti,Fe. The Ti-Fe-0 system contains two ternary compounds: E, corresponding to Ti2Fe; and y. SEVERAL authors have investigated the constitution of titanium-rich alloys of the Ti-Fe system. The most extensive study of titanium-rich portions of the Ti-Fe system was by Van Thyne, Kessler, and Hansen,' who investigated this system up to 50 pet Fe and used the highest purity materials available for their alloy preparation (iodide titanium was used for alloys up to 20 pet Fe). According to Van Thyne et al., phase relationships in the region of investigation are governed by phases a,ß, and TiFe. No evidence of an intermetallic compound Ti,Fe was found. although earlier. works by Laves and Wallbaum,' and Duwez and Taylor' reported its existence. Rostoker's study on the occurrence of TilX phases" confirmed the findings of Van Thyne et al. Rostoker proposed that the compound Ti Fe found by Duwez does not exist but is actually a ternary compound, Ti1Fe3O, originated by inadvertent oxygen contamination. The partial isothermal section of the ternary Ti-Fe-0 system as reported by Rostoker' seems to confirm this explanation. In the course of phase diagram work conducted at New York University, however, certain irregularities were observed to be associated with ternary systems of the type Ti-Fe-X. The ternary phase 6, observed in the systems Ti-Fe-Mo' and Ti-Fe-V." was found to be structurally identical to the com-pound Ti2Fe as reported by Duwez and Taylor, and to Rostoker's compound Ti1,Fe2O. Since the amount of oxygen possibly present in the Ti-Fe-Mo and Ti-Fe-V systems could not account for the observed amounts of the compound, it appears that the d phase in these systems is not Ti,Fe,O. On the other hand, considering the amounts of the 6 phase, particularly in the Ti-Fe-Mo system, the location of the phase was uncertain. It was felt that the introduction of the Ti2Fe phase would alleviate some of the inconsistencies of the two systems. Because of the uncertainties relating to the phase Ti2Fe, or Ti1Fe2O, it appeared worthwhile to re-examine the Ti-Fe and Ti-Fe-O systems in the vicinity of these compounds with highly sensitive metallographic techniques and with X-ray methods. Experimental Procedure Alloy Preparation—For the study of the binary system four alloys were prepared, containing 26.9 (30 wt pct), 34.0 (37.5 wt pet), 41.2 (45 wt pet), and 56.3 (60 wt pet) atomic pet Fe, and for the ternary Ti-Fe-O system 18 alloys were prepared in the composition range of 1.6 to 16.9 atomic pet 0 and 24.3 to 55.7 atomic pet Fe. The materials used for the Ti-Fe alloys were iodide titanium (99.98 pet Ti, 0.002 pet 0) and Ferro-vac-E iron (99.95 pet Fe, 0.0052 to 0.0072 pet 0). For the Ti-Fe-O study the materials used were sponge titanium containing less than 0.06 pet 0, Ferrovnc-E iron, and Baker's analyzed TiO2. The nominal weight and atomic percentages of the ternary alloys prepared are shown in Table I. Melting—Charges of 10 to 15 g were melted in a nonconsumable arc furnace in argon atmosphere according to the technique described elsewhere.'" Since there was practically no weight loss through the various stages of melting and oxygen losses have not been observed previously, it appeared justifiable to use nominal composition for interpretation of data. Iodide titanium control buttons, of the same mass as the Ti-Fe charges, and melted under the same conditions, were used to check hardness pickup during melting. A hardness increase of 2 to 3 Vhn was found. Heat Treatment—The specimens were annealed in quartz capsules under argon. To avoid contact between the specimen and capsule material all specimens were wrapped in titanium sheet. The annealing times are given in Table 11. The attain-

Jan 1, 1957

By Walter J. Mead

By American tradition, if not by rational decision, publicly owned natural resources have been transferred to private industry for processing. The process of transfer requires specific determination of the price which the patentee, buyer, or lessee must pay to the government in exchange for the right to develop a resource, and selection of the patentee, buyer, or lessee from among several possible contestants. Pricing of natural resources owned by the government presents a set of problems quite different from ordinary commodity pricing. Natural resources in situ are not homogeneous commodities. Within any class of natural resources, specific leasable parcels will differ in value by reason of location and accessibility, as well as quality and quantity. Thus, there is no "going price;" every lease within a specific resource class will have a different value. To complicate further the pricing and buyer selection problems, competition may not be reliable. Natural-resource markets are characterized by oligopsony conditions. In a significant number of cases, as will be shown later, there has been only one bidder for a given lease, and in most lease sales the number of bidders is equal to or less than three. As a further complication, there is great uncertainty regarding the value of specific resources, even among the best-informed buyers, as well as within the leasing agency. In some instances, particularly with regard to oil and gas resources, there may be uncertainty about the presence of resources, as well as the quantity and quality of any resources contained in the tract offered for lease. In other cases, such as oil shale and some deep ocean minerals where new technologies are involved, the presence of the resource is clearly established. There may be a relatively high degree of knowledge about the quantity and quality of the resource, but there is great uncertainty concerning the cost of production. These problems in total make it difficult for the leasing agency to appraise accurately the resource to be leased, as well as for the potential bidder to calculate a bid price that will yield him a normal profit. The pricing goal of the federal government as the seller or lessee may be to capture the economic rent; that is, the price of a resource might equal its discounted present value. A required price substantially above this amount would either generate no bids, or, in the long run, would bankrupt the buyer. A price below this amount is a disguised subsidy to the lessee. A subsidy to mineral lessees, as to any other economic interest group, as a minimum should be justified by a clear showing of net external benefits from the economic activity. In the case of timber sales by the U.S. Forest Service, the Forest Service Handbook asserts that "the aim in national forest stumpage appraisal is to determine market value,"8 and "market value" is equated to "fair market value." Regarding minerals, there is no reference in legislation or regula-

Jan 1, 1976