Search Documents

By John E. Sweet

THERE have already been so many subjects of a purely mechanical nature presented to the Institute of Mining Engineers, that it is unnecessary for me to apologize for adding another to the list. When a new invention, or what is supposed to be a new invention, claiming simply an improvement on the well-known devices, is to be described, it is usual to point out the defects of the old and give a history of the object or the art up to date. But, as no doubt a large proportion of the members of this Institute know as much, or more, about the history and use of the steam-engine indicator than I do myself, I will not further preface the subject, than to remind you that what called for the Richards's improvement on the Watt's indicator was high speed ; that the leading improvement was the reduction of momentum in the reciprocating parts; and that this was accomplished by making the parts lighter, and reducing the travel of the heaviest of them, and consequently the speed and momentum. The use of the indicator has been extended, for the speed of steam-engines and other prime movers has been increased, until one engineer at least, John Cooper, of Philadelphia, says, "I want an indicator that will work up to a thousand revolutions." Mr. Thompson, of the Buckeye Steam-Engine Company, of Salem, Ohio, has improved on the Richards's indicator by another reduction in the momentum, which is done by putting the parallel motion nearer the fulcrum of the pencil arm, reducing both weight and travel. The characteristic feature of the indicator I am going to illustrate is a still further reduction in the same direction, which is accomplished by dispensing with the parallel motion altogether. As is often the, case, in putting a simple idea into shape, some difficulties

Jan 1, 1879

By J. H. Westbrook, R. W. Guard

The influence of a number of alloying additions on the structure and hardness of Ni3Al (?') has been studied. Three general effects have been observed.. solid-solution hardening, strain aging, and defect hardening arising from deviations from stoichiometry. The solid-solution hardening phenomena are complicated relative to binary terminal solid solutions due to the possibility of virtually independent substitution for the component elements and to the concomitant effects of strain aging. In many superior nickel-base high-temperature alloys the elevated temperature strength is attributable to the presence of a dispersion of Ni3A1 (?') in a solid-solution matrix. Examples of such alloys are Inconel X-550, Inco 713, Waspalloy, and Nimonic 80. It is, therefore, appropriate to seek a further understanding of the properties and alloying behavior of this compound. Ni3Al, the compound most rich in nickel in the nickel-aluminum binary system, was first detected by litakal but not established with certainty until the much later studies of Bradley and Taylor' and Alexander and Vaughan.3 More recently the mechanism of formation was clarified by Floyd4 who showed that Ni3Al is the product of a peritectic reaction at 1395°C between the melt and the compound NiAl in agreement with the original suggestion of Alexander and Vaughan.3 Ni3Al has the ordered face-centered-cubic or Cu3Au structure in which the nickel atoms occupy the face centers and the aluminum atoms the cube corners, a0 = 3.570A. Despite earlier reports to the contrary. the compound apparently remains ordered at least to 1000oC.5 It exists over a narrow range of compositions (-3 pct wide) whose limits and temperature dependencies thereof have been reviewed recently by Taylor and Floyd.' Most previous workers have found Ni3Al to be both hard and brittle7,8 although Maxwell and Grala8 obtained 2.5 to 6 pct tensile elongation at room temperature and Alexander and vaughan3 described the material as "hard and tough" on the basis of observations made while preparing metallographic specimens. In a recent study one of the present authors found that although considerable intergranu-lar brittleness was evident: individual grains of a coarse-grained inert atmosphere arc-melted specimen were readily deformable.l0 The same study also showed Ni3Al to have an anomalous temperature dependence of hardness in that such a curve exhibits a number of peaks between room temperature and 800°C which could not be associated with any microscopically observable precipitation reactions or polymorphic transformations. It was, therefore, proposed in the present study to elucidate the anomalous high-temperature strength behavior and to examine the solid-solution alloying of this compound and the effects of such alloying on hardness. Sample Preparation and Experimental Procedure-Samples, both of pure Ni,Al and of various alloyed solid solutions based on Ni3Al, were prepared by arc melting 100-g buttons in an inert atmosphere arc furnace. All buttons were heat treated for 4 hr at 1275oC and examined metallographically for homogeneity. Microstructures were typically homogeneous and single phase with ASTM grain size about 1 and unusually clean grain boundaries. Chemical analyses showed good correspondence (within a few tenths of a percent) with intended compositions. Microindentation hardness data were obtained from room temperature to 800°C in vacuo using a balanced-beam type loading system in an instrument to be described in detail elsewhere." In general a 100-g load, a loading rate of 1 mm per min and an indentation time of 15 sec were used. Various indenter materials were used according to the materials bein tested because of specimen-indenter interaction. Fl Measurements of the Vickers-type indentations were made at room temperature. Hardness-temperature curves were run at least twice on each sample to ensure that surface work-hardening effects had been eliminated." Precision lattice-parameter measurements were made on powder samples using a back-reflection

Jan 1, 1960

By B. A. Stainton, John D. Gill

OUR combined economic activities have as their goal the maximum of individual well-being and national security. In this age of intense international competition the two objectives are closely related. For many decades, the maximum of well-being and ability to maintain national security have moved generally upward. The best single measure-perhaps the only adequate measure -of the level of the rising goal is the per capita real national income (national income corrected for price changes). For centuries before the industrial revolution the income of the world's population changed little from generation to generation. In our country prior to 1800 the growth of national income was hardly measurable from decade to decade. Since 1850, perhaps since the "industrial revolution," the growth of per capita real income has been increasing geometrically. Of major importance is the accelerative growth of the productive ability of our economy. Inadequate consideration of its implications is partly responsible for periodic delays in solving our princi-

Jan 1, 1946

By Edwin Ludlow

I DEEPLY appreciate the honor which has been conferred upon me by my election to the presidency of this Institute, as I feel that it is the highest honor a mining engineer can receive, and I also feel that I am especially fortunate in being called to take the presidency in the year following Mr. Hoover, as I may be enabled in that way to carry on the work which he has initiated. The constructive work that Mr. Hoover has inaugurated has been of inestimable benefit in bringing not only this Institute but the entire engineering profession into a place in the public esteem to a degree which it had never before occupied.. This work Mr. Hoover will now carry on in the broader field of the Federated American Engineering Societies, of which he is president. Through that organization the engineers of this country, in all branches of the profession, will be welded into one compact body reaching from the Atlantic to the Pacific, making the united engineering profession a power for maintaining American . . ideals and standards throughout the land.,

Jan 1, 1921

By Lane, K. S.

The problem of stability of slopes in reservoirs is one of real interest in civil engineering. The problem is whether the valley walls will remain stable or whether they are likely to slide as conditions are changed by storage of water in the reservoir. If major slides are indicated, as on the walls of relatively steep canyons, one must estimate whether they will be so located and of sufficient size as to interfere with operation of the reservoir-as by blocking the outlets, or by displacing sufficient water to over-top the dam in a huge wave. Some cases involve problems in soil mechanics for slides in earth or weaker rock; other locations need the assistance of rock mechanics for slides in harder rock. While this is not a new problem, attention has recently been focused on its importance by the hugh landslide into the Vaiont reservoir in 1963, which claimed the lives of over 2000 people and forced abandonment of the dam and powerhouse.

Jan 1, 1969

By B. M. Burchfiel

CALIFORNIA possesses such an abundance of ceramic materials other than clays, that she is quite independent of other states and foreign countries so far as these materials are concerned. Certain users import some feldspar, silica, and allied minerals, but they do so from choice and not necessity. Production is largely for home consumption, so the total volume of ceramic materials produced is comparatively small. Many small deposits of the materials here under discussion are worked by individuals, and their output sold to individual grinding companies or users. The data given here shall be confined to the larger deposits and developments because they give a truer picture of typical deposits, operations, and materials.

Jan 1, 1936

I. C. WHITE, Morgantown, W. Va. (written discussion *).-The writer's conclusions with reference to the possibility of finding commercial deposits of petroleum in Brazil were published in 1908 in the Final Report of the Coal Commission of Brazil.1 Since this volume is not generally accessible, and the author has nothing to acid thereto, the following quotation found on pages 243-7 may prove of interest: The Possibility of Petroleum Deposits in Brazil "The writer has often been asked to express an opinion as to the possibility of finding petroleum in commercial quantity in Brazil. "The question is one that does not admit of an adequate answer except for the regions visited by the writer, which as already stated, include only, a portion of that great territory, and only the southern portion of Brazil; namely, the states of Rio Grande do Sul, Santa Catharina, Paraná, and a few rapid excursions across São Paulo, and Minas Geraes, as well as the brief visit to Marahú in Bahia. "That the sedimentary beds of the Brazilian Permian once held some petroleum is attested by the evidence of the Iraty black shale which gives off the characteristic odor of this substance from São Paulo to Rio Grande do Sul.

Jan 1, 1918

By K. N. Weaver

In the early 1950's the cement industry began putting a new emphasis on geology. This article points up some of the industry's raw materials problems that geologists are uniquely qualified to handle. Portland cement can be made from relatively abundant industrial minerals and rocks, and this may explain why cement producers placed little emphasis on geology during the early days of the industry. After World War 11, however, the industry began to recognize the need for geological exploration and some of the larger companies began to build a permanent geological staff. This development has its roots in: 1) The rapid expansion of the industry. After World War II and continuing into the early 1950's the demand for cement far exceeded the production capacity. This placed a great deal of pressure on the producers to enlarge capacity at their plants and to develop new sites. 2) The closing of many cement plants due to inadequate raw materials. Producers feared lack of raw materials due to inadequate exploration and evaluation. 3) An ever increasing pressure for upgrading of the quality of portland cement, necessitated upgrading the quality of raw materials. 4) The increasingly large capital investment needed to build new cement plants required a higher degree of accuracy in reserve calculation. These reasons are more or less self explanatory and will not be elaborated on. They are outlined to illustrate the probable evolution of thought among cement management to justify the development of a geological staff. In the author's personal experience the geologist must continually readjust to changing conditions within the industry. For example, cement production capacity grew so rapidly that today production is only about 70% to 75% of rated capacity (73.8% in 1963). Therefore, whereas the geologist's function during the active expansion of capacity was primarily one of exploration, one of his major functions today is the development of existing reserves. This assumes of course that reserves at existing plants have been proven to be adequate in terms of the company's reserve policy. Through the proper development of raw materials, the geologist can markedly influence quality control, production and long range planning. Examples of several of the operations of Medusa Portland Cement Co. will illustrate how proper attention to geologic detail pays off in the above areas. Because limestone is the major raw material of port-land cement, the examples will be concerned with it. DEVELOPMENT OF GEOLOGIC DETAIL One of the prime objectives of an exploration or development project should be the establishment of the stratigraphy and structure of the deposit. The basic tool for exploration and development is still the core drill, and the geologist must gain a maximum amount of information from a minimum amount of drilling. In order to obtain this objective the following is essential: 1) Adequate detailed geologic logging of cores. The core is first logged and separated into lithologically distinct units. In order to make the lithologic breaks as meaningful as possible, representative pieces of core (not all) are etched in dilute HCI. This removes the "drill polish", brings out the structure of the rock and indicates the proportion of dolomite and argillaceous material because dolomite and argillaceous material etch in relief. In this way the lithologic breaks become clearer and one gains a general idea of the chemical makeup before analysis. This method of logging lessens the probability of including two types of stone, e.g. limestone and dolomite into the same sample for chemical analysis. 2) Representative sampling for chemical analysis. After logging, the lithologic units are sampled for chemical analysis. A representative analysis can be obtained by extracting a 1-in. sample for every foot of core. For example, a lithologic interval of 10 ft to 20 ft would yield ten 1-in. samples taken at 11 ft, 12 ft, 13 ft... and 20 ft. These samples are then crushed, pulverized and split into a sample for chemical analysis. This sampling method represents a significant saving of time over splitting the entire core. 3) Preparing the core as a record. Because of the expense of storage and the difficulty of handling large amounts of core, only representative samples of each lithologic unit are saved for reference. An

Jan 1, 1965

By Raymond B. Ladoo

Wollastonite is a calcium metasilicate, with the formula CaSiO3; containing theoretically 48.3 pct CaO and 51.7 pct Si02. It is one of many natural and synthetic silicates with varying CaO/SiO2 ratios, with and without water of crystallization. While it is a very common mineral, deposits of sufficient size and purity to be of commercial interest are unusual. There is only one producer (1958) of wollastonite for industrial use in the United States, Godfrey L. Cabot, Inc. at Willsboro, New York. There has been a small production of surface material for ornamental use from near Blythe, California. Carload tests have been made on California wollastonite for making mineral wool and a commercial plant for this purpose was projected in 1957. Properties Wollastonite is monoclinic and commonly occurs in masses or aggregates of bladed or needle-like crystals. It has a perfect cleavage parallel to the long prismatic axis. It is rather brittle and some types grind easily to a very finely fibrous product, but other types, due to interlacing of fibers, are tough and difficult to grind. Mobs hardness is 4.5 to 5; specific gravity 2.8-2.9; index of refraction 1.616 to 1.631; melting point 1,512°C. Color when pure is a brilliant white, but when less pure it may be gray or brown. Luster is vitreous, transparent to translucent. Common mineral associates are garnet (several varieties), diopside, calcite and quartz. The nature of the mineral impurities determines to a large degree the commercial value of a deposit. At Willsboro, New York, the impurities consist chiefly of iron garnet and iron diopside which are both magnetic and so are easily removable by magnetic separation, yielding a nearly theoretically pure product. Some deposits in California contain calcite and quartz which cannot be removed cheaply, thus limiting market possibilities. Occurrence Wollastonite is a contact metamorphic mineral occurring in most places within or associated with impure limestones. The deposits at Willsboro, New York1,2,3,5 consist of two or more beds dipping 15-50°E and striking NW-SE. The main bed, 30 to 70 ft thick, may be traced on the surface for at least 2 ½ miles. In this belt, the Pre-Cambrian Grenville limestone has been injected and partially replaced by the more liquid portions of an anorthositic magma. Buddington and Whitcomb3 have described the rock as "Mixed gneisses, pyroxenite and garnetiferous gneisses and skarns." Prospecting revealed the wollastonite at ten different places in the belt, overlain in most places by a garnet rock. Diamond drilling has proven several million tons with probable reserves around 15 million tons. Interbedded with the wollastonite are beds of garnet from a few inches to several feet in thickness. In the wollastonite ore itself the chief and almost only associated minerals are garnet (mostly almandite but some andradite and grossularite) with small amounts of green hedenbergite. Inasmuch as the almandite and diopside are magnetic they are easily separated from the wollastonite in high intensity magnetic separators. If grossularite should occur in quantity other means of separation would be needed. Wollastonite has been reported at 35 localities in California12 but only those in the Big Maria and Little Maria Mountains, 16 to 20 miles north of Blythe, Riverside County, are

Jan 1, 1960

By A. L. Jr. Pozzi, A. O. Garder, D. W. Peaceman

A new numerical method is proposed for the solution of multidimensional miscible displacement problems. Besides the usual stationary grid associated with numerical procedures, the method uses moving points for which positions and concentrations are computed each time step. Based on the method of characteristics for treating combined transport and dispersion, the method applies equally well to any number of dimensions and, in contrast with other numerical procedures, properly takes into account the physical dispersion, no matter how small. Extensive tests show that accurate solutions of one-dimensional problems can be obtained over a wide range of values of the dispersion coefficient, including zero. They also show that the moving points do not need to be uniformly spaced, and that increasing the number of moving points beyond 2/grid interval does not significantly improve the accuracy of the solution. Two-dimmsional calculations using the new method were carried out to simulate laboratory model displacements in which gravity caused overriding of solvent. Good agreement between observed and computed profiles and measured and computed concentrations of produced fluid was obtained for a viscosity ratio of 1.89; at higher viscosity ratios, fair agreement was obtained Computed results were found to be significantly affected by vertical dispersion, and negligibly affected by dispersion in the direction of flow, in agreement with conclusions based on experimental observations. INTRODUCTION Although miscible displacement processes are potentially of great economic significance, limited progress has been made in developing mathematical methods for predicting the outcome of a solvent flood. Because of the complexity of the partial differential equations which describe multidimensional miscible displacement, numerical methods are a natural approach to their solution. The task of finding suitable numerical approximations to one of the partial differential equations, which involves both dispersion and convective transport, has been particularly difficult. Dispersion in the absence of transport is described by the heat flow equation, a second-order equation of parabolic type. This equation has been very successfully treated by numerical methods. Transport in the absence of dispersion is described by a first-order equation of hyperbolic type. This equation has been treated numerically with some success in one dimension, both by Lagrangian and Eulerian techniques, 1.2 but extension to two or more dimensions has not been satisfactorily accomplished. Usually one of two things happens: either the numerical solution develops oscillations or it becomes smeared by artificial dispersion resulting from the numerical process. When transport and dispersion are considered simultaneously, this numerical dispersion may dominate the low physical dispersivicy that generally characterizes miscible displacement. Stone and Brian2 have developed a new difference equation for treating combined transport and dispersion in one dimension. By suitable choice of certain parameters, they succeeded in markedly reducing both oscillation and numerical dispersion. However, a satisfactory extension to higher dimensions has not yet been found. Peaceman and Rachford3 presented a centered-in-time and centered-in-distance difference equation combined with a 1,transfer of overshoot" procedure which was demonstrated to work well in one dimension. The technique was applied to the two-dimensional miscible displacement problem, but subsequent calculations with zero dispersivity showed little change in results compared with the calculations they presented. This indicates that their method involved a numerical dispersion of the same order as the physical dispersion. The present paper describes an alternate method for solving the combined transport-dispersion

Jan 1, 1965

Robert W. Hunt, Chicago, Ill.:—It has been my good fortune to know of this development of Mr. York's for some time, and I think he will permit me to say that this is not the first demonstration that he has made of his method for rolling difficult shapes, and which, as he has stated, had in the past been regarded as practically impossible. I have good reason to know that Mr. York has been successful on other lines, because I myself went through a period of professional disrepute for having reported favorably on his methods, which received discredit up to the time that it was practically demonstrated that his claims were true ones. Years ago Mr. York built a mill at Duluth, Minn., for the production of structural shapes, and notably of what might be called balanced beams—beams that did not have flanges of restricted width. His scheme was to produce beams with flanges so wide that they could be used in place of built-up beams. The mill, of course, went through the difficulties that such a mill would have to encounter. I mas called upon to make an examination of the property and report. These beams were rolled on a universal mill—a mill which would admit of various-sized sections without change of rolls. I was convinced that Mr. York could do it, and I so reported. Having received condemnation and ridicule for having taken that position, later on I was glad to find that Mr. John Fritz had come to the same conclusion, and had so reported. I concluded we both could rest content, while awaiting developments. Later still, as we all know, there was another difficulty that Mr. York met with—namely, that the architects or structural engineers would not accept his proposed sections. That is still a great difficulty in America. Later, the Grey mill came into successful operation in Luxemburg, producing such sections, which are being used in England and on the Continent. In fact, the whole process, both from a commercial and a mechanical point of view, is a success. The Bethlehem Steel Co., Bethlehem, Pa.,

Jan 1, 1907

By C. E. Shoenfelt

The year 1939 witnessed the rapid development of several of the more important Rocky Mountain oil and gas areas and the discovery of new oil and gas fields. As a further result of an active year, many oil fields had their productive limits greatly extended or responded to deeper drilling with oil production in lower horizons. In Colorado there was a substantial increase in refinery capacity, with three new units constructed. Its contribution to the crude-oil supply was an important extension of the producing area of a Western Slope field and a deeper oil-producing horizon in an old field east of the Front Range. Occurrences of gas were reported in two wells in northwestern Colorado, but severe winter weather prevented tests and the value of these discoveries cannot be determined at this time. Montana's northern fields were extended and a number of record wells were completed. The North Cut Bank area gives promise of wide expansion in 1940. The gas-producing area of Wyoming's Elk Basin field was extended into Montana on the north plunge of the anticline. The most important developments in Wyoming oil fields in 1939 were extensions to the producing area of Lance Creek and the discovery of a deeper pay in the Tensleep formation at Wertz dome. A new gas field at Horn Valley in the south central part of the state was the only new field discovered, but wildcatting was at low ebb in Wyoming in 1939. Colorado In Colorado, the year 1939 saw the completion of several interesting tests, but largely with negative results. Oil was discovered, however, in a deeper sand in the old Fort Collins field and the productive area of the Wilson Creek field was extended. Gas had been noted in two Western Slope wells, at Yellowjacket-Buford and at Trull, but their volumes had not been determined at the end of the year. Of principal interest, however, were the failures, descriptions of which will be given presently. One of these established a new depth record for Colorado.

Jan 1, 1940

By C. E. Shoenfelt

The year 1939 witnessed the rapid development of several of the more important Rocky Mountain oil and gas areas and the discovery of new oil and gas fields. As a further result of an active year, many oil fields had their productive limits greatly extended or responded to deeper drilling with oil production in lower horizons. In Colorado there was a substantial increase in refinery capacity, with three new units constructed. Its contribution to the crude-oil supply was an important extension of the producing area of a Western Slope field and a deeper oil-producing horizon in an old field east of the Front Range. Occurrences of gas were reported in two wells in northwestern Colorado, but severe winter weather prevented tests and the value of these discoveries cannot be determined at this time. Montana's northern fields were extended and a number of record wells were completed. The North Cut Bank area gives promise of wide expansion in 1940. The gas-producing area of Wyoming's Elk Basin field was extended into Montana on the north plunge of the anticline. The most important developments in Wyoming oil fields in 1939 were extensions to the producing area of Lance Creek and the discovery of a deeper pay in the Tensleep formation at Wertz dome. A new gas field at Horn Valley in the south central part of the state was the only new field discovered, but wildcatting was at low ebb in Wyoming in 1939. Colorado In Colorado, the year 1939 saw the completion of several interesting tests, but largely with negative results. Oil was discovered, however, in a deeper sand in the old Fort Collins field and the productive area of the Wilson Creek field was extended. Gas had been noted in two Western Slope wells, at Yellowjacket-Buford and at Trull, but their volumes had not been determined at the end of the year. Of principal interest, however, were the failures, descriptions of which will be given presently. One of these established a new depth record for Colorado.

Jan 1, 1940

(Members are urged to send in for this column any notes of interest concerning themselves or their fellow-members.) Members and guests who called at Institute headquarters during the period Apr. 10, 1916; to May 10, 1916: Philip P. Baily, New York, N. Y. George W. Otterson Seattle, Wash. John M. Brooks, Jr., Knoxville, Tenn. C. Q. Payne, New York, N. Y. C. A. Burdick, New York, N. Y. Charles F. Potter, Los Angeles, Cal. W. N. Crafts, Oberlin, Ohio. Albert E. Rhoads, Harrisburg, Pa. Andrew B. Crichton, Johnstown, Pa. M. F. Sayre, Schenectady, N. Y. 0. P. Hood, Pittsburgh, Pa. H. V. Smythe, Northpines, Ont., Canada. W. McA. Johnson, Tulsa Okla. W. 0. Snelling, Long Island City, N. Y. G. H. Morgan, New York, N. Y. W. H. Staver, Ophir, Colo. E. G. Norton, Chicago Ill., A. W. Tucker, Salisbury, N. C. M. L. O'Neale, Coal City, Ala. Andrew Weisenburg, Philadelphia, Pa. Arthur H. Brown has resigned his position with the Dome Lake Mining & Milling Co., South Porcupine, Ont., Canada. Robert Sterling has resigned his position as chief engineer of the Goldfield Consolidated Mines Co., Goldfield, Nev., to accept the position of assistant manager of the vanadium mines of the Primos Chemical Co., Vanadium, Colo.

Jan 6, 1916

The officers and staff of the Petroleum Division are the servants of the members, and to the extent that the wishes of the members are made known and are practicable they will be carried out. The tentative plans outlined here are in general accord with previous custom, but modified by suggestions received recently from various members. The advice of all members is solicited, and it is hoped that the general expression on matters of policy can soon be facilitated by circulation of a questionnaire. Plans for two mid-year meetings of the Petroleum Division and for participation in the annual meeting at New York were inaugurated at the last annual meeting and are being carried forward as rapidly as possible in the belief that an early start will increase the possibility of finding the best available program material and permit the careful preparation, review, editing, and advance discussion of papers. While a number of papers have already been solicited, both members and nonmembers are hereby invited to submit additional papers, with the assurance that such papers will be given just as favorable consideration as the papers that have been requested. Mid-year meetings will be held at about the same time both in the Mid-Continent and California. The time will be selected if possible to coincide with the visits of President Lovejoy, who expects to be in California the last of September and in Texas early in October. Fort Worth, Dallas and Austin have been suggested for the Mid-Continent meeting. The Pacific Coast meeting will be held at Los Angeles. It is to be noted particularly that a Pacific Coast meeting was waived last year in favor of the annual meeting of the American Petroleum Institute, which was held at Los Angeles for the first time in nine years. It is hoped, and it was the understanding at the time among a number of individuals interested in both organizations, that in view of this action of the Petroleum Division the industry will give more than the usual support to the A.I.M.E. meeting this year. Ultimate Recovery is being considered as the keynote topic for the mid-year meetings. In view of trying financial conditions combined with an exceptionally high current potential rate of production, it is natural that the attention of the industry should be focused upon means of controlling production and reducing cost of operation. It seems that the Petroleum Division of the A.I.M.E., as a professional group, might

Jan 1, 1936

The officers and staff of the Petroleum Division are the servants of the members, and to the extent that the wishes of the members are made known and are practicable they will be carried out. The tentative plans outlined here are in general accord with previous custom, but modified by suggestions received recently from various members. The advice of all members is solicited, and it is hoped that the general expression on matters of policy can soon be facilitated by circulation of a questionnaire. Plans for two mid-year meetings of the Petroleum Division and for participation in the annual meeting at New York were inaugurated at the last annual meeting and are being carried forward as rapidly as possible in the belief that an early start will increase the possibility of finding the best available program material and permit the careful preparation, review, editing, and advance discussion of papers. While a number of papers have already been solicited, both members and nonmembers are hereby invited to submit additional papers, with the assurance that such papers will be given just as favorable consideration as the papers that have been requested. Mid-year meetings will be held at about the same time both in the Mid-Continent and California. The time will be selected if possible to coincide with the visits of President Lovejoy, who expects to be in California the last of September and in Texas early in October. Fort Worth, Dallas and Austin have been suggested for the Mid-Continent meeting. The Pacific Coast meeting will be held at Los Angeles. It is to be noted particularly that a Pacific Coast meeting was waived last year in favor of the annual meeting of the American Petroleum Institute, which was held at Los Angeles for the first time in nine years. It is hoped, and it was the understanding at the time among a number of individuals interested in both organizations, that in view of this action of the Petroleum Division the industry will give more than the usual support to the A.I.M.E. meeting this year. Ultimate Recovery is being considered as the keynote topic for the mid-year meetings. In view of trying financial conditions combined with an exceptionally high current potential rate of production, it is natural that the attention of the industry should be focused upon means of controlling production and reducing cost of operation. It seems that the Petroleum Division of the A.I.M.E., as a professional group, might

Jan 1, 1936

By James H. Taylor

"Titanium is a widely distributed, dark grey metal1ic element found in small quantities in many minerals. It has no important uses." Happily, this early quotation proved to be wrung; titanium has, on the contrary, found a large number of very important uses. The error in the 1926 quotation illustrates the problems associated with forecasting the future development of any metal. 'The paper will nevertheless attempt to estimate what will happen to the European titanium industry over the coming decade with slightly more accuracy. It was not until 1955 that anything other than pilot plant facilities were installed in Europe. In 1955 IMI's plant in England, two plants in Germany, one in France and one in Sweden came into operation. All the companies associated with titanium installed melting furnaces but only IMI Titanium has forging and rolling facilities devoted solely to the production of titanium. The other firms rely on the use of equipment of their parent steel companies for processing the me1 ted titanium ingots.

Jan 1, 1982

Jan 1, 1924

By R. Laird Auchmuty

A NUMBER of factors, of varying importance, should be considered in assessing mineral land-here specifically coal land -for tax purposes. (1) Is the coal developed or un- developed'! (2) If undeveloped, is it surrounded by active development in adjoining properties? (3) Accessibility of railroad facilities to the property. Sometimes the railroad itself is of importance. (4) Cost of development of the seam under consideration, whether it can be developed by a drift from the outcrop or whether it will require deep and costly shafts or slopes. (5) Is it definitely known that the coal seam being assessed is of minable thickness and quality on the property? (6) Thickness of recoverable coal from the seam. (7) Quality of the coal. (8) Is the seam being assessed likely to be more costly to mine than other seams in the same district? (9) Is there an active market demand for coal from the seam being assessed? (10) Is the coal held only as protection to surface structures and in such location that it can never be mined? (11) Is the coal in a solid piece or is it in pillars that have been standing for some years as a result of incomplete mining in an old operation? (12) Expected percentage of recovery from the seam being assessed as determined by present mining practice in similar properties. (13) Value of the seam as indicated by sales of similar mineral rights in the immediate district. (14) Current royalty rates of leases for coal in the seam under consideration.

Jan 1, 1939

By C. Richard Tinsley

INTRODUCTION Documentary complications arise from the risk apportionment in project financing which generally means that once the project is up and running and has satisfied the lender's completion test, the loan agreement specifically limits the lender's recourse to the project and its assets. It is the purpose of this paper to describe the special considerations which apply to industrial minerals projects and explore the reasons why so few project financings are negotiated in this industry. SIZE Small projects do not warrant the relatively high costs of negotiating and documenting project financing. The extent of the documentation is directly proportionate to either (a) the degree of risk apportionment, or (b) the amount of control given to lawyers to negotiate the documents. Although one would like to believe that project-finance documentation could be off-the-shelf, it is almost always necessary to tailor the documents to the mine development itself and the individual desires of the borrower. Accordingly, the documentation costs and initial expenses are seldom less than $40,000, and for complex projects can reach $400,000. In addition, banks often charge an up-front fee to partly compensate them for their staff time and partly to increase their yield on what is deemed to be a "riskier" loan asset. Another factor is the generally lower debt:equity ratio when bankers are uncertain of the accuracy of the cash flow projections. The ratio of the amount of cash flow left over after debt service to debt service itself is a key tool for project finance (debt service coverage). Bankers will require a higher coverage ratio for industrial minerals projects because of the relatively higher uncertainties in the following categories: Prices Markets Geology/Quality Transportation Environmental This, in turn, means that lower debt:equity ratios are the norm for new industrial minerals projects. INDUSTRY STRUCTURE It is hardly worthwhile to generalise about a field as diverse as industrial minerals, but there are four other structural reasons why project financing has not been widely applied. 1. The most obvious example is the predominance of small-sized operations, largely a function of transportation economics. Geological conditions also contribute to their dispersion. 2. Often, the product is only a small part of a company's business in contrast to many petroleum, metals, or coal companies whose sole business is the production of the raw material. The construction industry is a good example here for cement, gypsum, crushed stone, sand and gravel, and the drilling-mud services business for barite and bentonite. A company is unlikely to jeopardise its main business through the failure of a project financing on one of its key inputs. The corrollary is that the mined input is often regarded as a cost centre and not run on the sort of economic basis suitable for project financing. 3. There may be a reluctance to reveal key aspects of an industrial minerals venture to an outsider for purely competitive reasons. Unlike the other minerals industries which readily share technical information at plant visits and

Jan 1, 1985