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By Grover R. Castle

INTRODUCTION "Project Financing" or "Project Loans" have become increasingly popular in recent years, and commercial banks are being asked to consider more and more of such financing. However, the analysis of this type of loan is quite different from the analysis of a loan to a financially sound corporation based on the company's balance sheet. For this reason Chemical Bank did a study of project loans in an attempt to be more sophisticated in our approach to them. As part of this study, we examined 29 project financings for which information was available. In this article I shall describe project loans and set forth the guidelines we developed, as an aid to credit officers who might have occasion to analyse this type of financing. DEFINITION OF "PROJECT FINANCING" OR "PROJECT LOAN" The terms "project financing" and "project loan" commonly describe the various methods that banks and institutional lenders use to finance the construction of new projects on a basis whereby payout is anticipated from the revenue stream generated by the project. A project financing often involves a loan to a new entity formed specifically to own the project. The analysis of a project loan proposal is quite different from the analysis of other term-loan proposals since it involves a credit decision based on the review of a projection or forecast rather than of historical earnings and/or it involves the reliance on contractual obligations of third parties. Lenders are asked to assume the added risks associated with project loans because: 1. Project financing may permit a company to obtain additional leverage. It is possible for companies to arrange financing on a project basis that could not be arranged as a direct borrowing. For example, a company may not be permitted to borrow more money directly, due to a limitation in a bond indenture. However, a project financing can sometimes be negotiated on a basis not prohibited by the indenture. 2. Often the sponsors of, or the stockholders in, the project are seeking an off-balance-sheet financing. For example, 11 of the 29 projects in our study were arranged on an off-balance-sheet basis and one showed on the balance sheet as a deferred income item. An off-balance-sheet financing, for the purpose of this article, is a financing which does not show as a direct liability on the balance sheet of the sponsors of or stockholders in a project. 3. Projects are often located in a foreign country. The financing is arranged so that the lenders assume the political risk on the loan because many companies rightly believe that this arrangement affords a degree of insulation from political risk not otherwise obtainable. 4. Many projects are jointly owned by several sponsors. This form of financing lends itself well to a situation where a new entity is formed to own a project and do the borrowing. Project loans can be used to finance a variety of activities including development of iron-ore deposits and associated pelletizing plants; development of coal reserves; construction of pipelines, alumina plants, fertilizer plants and refineries; etc. The specific areas of analysis can be quite different, depending upon the type of project being financed. It is important, therefore, to classify the proposal according to the type of project, and also by the nature of the financing - nonrecourse financing, financing covered by a guarantee of completion and financing supported by an undertaking lasting for the life of the financing. I will discuss each of these types in more detail later, but first, I should like to make some

Jan 1, 1985

By Willard S. Morse

The ores of the district are treated at this mill by the lixiviation process, consisting of drying, crushing, chloridizing-roasting and lixiviation by hyposulphite and Russell solutions. Gas is used as fuel for both drying and roasting, The gas-plant consists of two- Taylor revolving-bottom gas-producers, one 6 feet in diameter for the ore-dryers, the other 7 feet in diameter for the Stetefeldt furnace. The producers were made by Messrs. R. D. Wood & Co., Philadelphia, who also furnished the

Jan 1, 1893

The primary purpose of the Institute is to advance the technologic and engineering arts embraced by it through interchange of knowledge. This can best be clone by the presentation and discussion of technical papers by its members. Short practical papers are especially welcome. An author should always satisfy himself that his material is of a quality that will he a credit to him and to the Institute. The preparation of a good paper frequently leads to a reorientation of the author's thoughts, and publication contributes much to the professional standing of the author. Members are urged to submit papers presenting the results of their work. Attention to the following suggestions will greatly further the prompt and efficient handling of manuscripts. 1. SUBJECTS: The subject must be within the field of the Institute. Original work, the results of field, plant, laboratory or theoretical investigations, new views on old but important problems and occasionally reviews of timely and important subjects of wide interest to our members may constitute the basis of a paper. The mere fact that the work is original does not necessarily justify publication: it must be of a substantial nature, of value to a reasonable number of our members and worthy of permanent record. It is seldom desirable to subdivide the results of a single research for publication in a variety of journals. Previous publication is usually a bar to acceptance. If any part of your paper has been published elsewhere and you regard repetition as absolutely necessary please so state in your covering letter. 2. CONSTRUCTION: Papers should be clearly and concisely written in good English. Care in this regard ensures wider reading and the saving in space permits the Institute to publish more papers. It is the experience of the Papers and Publications Committee that most papers can he improved by condensation. "Readers" who are asked to recommend acceptance or nonacceptance put particular emphasis on the length of the paper and the elimination of unnecessary or any extraneous material. The terminology and units employed should be those current in the particular field. An examination of Institute publications will afford useful guidance in such matters. Webster's New International Dictionary, 1935 edition, is the Institute's authority for spelling and style. Various abbreviations are used habitually; for instance, lb., pound; bbl., barrel or barrels; ft., foot or feet; hr., hour or hours; in., inch or inches; Fig. 1 but Figs. 2 and 3.

Jan 1, 1946

By Cresap P. Watson

ABOUT the time this magazine reaches its readers, Cresap P. Watson will celebrate his 53d birthday. If he spends that birthday at his West Los Angeles home, he won't be far, as distance is measured today, from Santa Barbara, where he was born on July 8, 1895. He is truly a member of a petroleum family; one brother, N. O. Watson, managed Royal Dutch Shell interests in Venezuela for years and is now general manager of the Caribbean Petroleum Co. at. Maracaibo; another brother, Rex, is vice-president of the Drilling and Exploration Co., while brother-in-law Ben Belt is an executive of Gulf Oil. His own life has centered in the petroleum industry since his first job in 1913 as camp cashier for a Mexican oil field at Tampico. Down on the isthmus of Tehuantepec he advanced to tool dresser and' production foreman for the company. The first World War interrupted his Mexican experience by transforming him into an artillery officer in France. Once the Army ceased to demand his services¬by then it was 1919-he returned to the task of furthering his professional career as agent for the Amerada Petroleum Corp. By 1927 he had reached the position in which he could be called an executive in the petroleum industry, having organized and become president of the Federal Royalties Co. His activities in local and national legislation affecting the petroleum industry increased as has his advocacy of the development of oil and gas fields under sound engineering and conservation principles through unitization or other co-operative forms of operation. Considerable amounts of his time go to the promotion of industry public relations.

Jan 1, 1948

By S. P. Kinney, A. J. Boynton

This paper states that progress in blast-furnace engineering during the past five years is unimportant except for the advent of the electric precipitator for gas cleaning. It describes improvements in certain furnace details and in materials of construction. The paper is largely given over to a discussion of difficulties in operation due to disproportion between the diameter of the present-day furnace at the bosh and at the stock line. It is proposed to remedy this disproportion, and to restore relations in the diameter of stock line and bosh as they formerly existed, by a new method of filling. This method requires a double bell arranged to discharge towards the periphery or towards the center of the furnace. Coke is classified into two sizes, the small size going to the middle of the furnace, and the larger to the periphery along with the ore. By this means the resistance of the center of the furnace is increased, and the stock line diameter may be greatly increased. The writer believes that these modifications will result in a somewhat improved fuel economy and regularity of operation and also in a very greatly reduced production of flue dust.

Jan 1, 1935

By S. P. Kinney, A. J. Boynton

This paper states that progress in blast-furnace engineering during the past five years is unimportant except for the advent of the electric precipitator for gas cleaning. It describes improvements in certain furnace details and in materials of construction. The paper is largely given over to a discussion of difficulties in operation due to disproportion between the diameter of the present-day furnace at the bosh and at the stock line. It is proposed to remedy this disproportion, and to restore relations in the diameter of stock line and bosh as they formerly existed, by a new method of filling. This method requires a double bell arranged to discharge towards the periphery or towards the center of the furnace. Coke is classified into two sizes, the small size going to the middle of the furnace, and the larger to the periphery along with the ore. By this means the resistance of the center of the furnace is increased, and the stock line diameter may be greatly increased. The writer believes that these modifications will result in a somewhat improved fuel economy and regularity of operation and also in a very greatly reduced production of flue dust.

Jan 1, 1935

I would like to congratulate the authors on an interesting paper and, in particular, on their justification of the use of superposition in treating gas wells. They state, however, that no theory has previously been developed lor treating the variable rate drawdown case. In a paper published a few years ago by my colleagues and myself, a method is described which allows a constant rate drawdown curve to be derived for any well. regardless of real rate variations. This method has the great advantage that it is not necessary to make any assumptions regarding the form or uniformity of the reservoir, and the derivation suggested by the present authors is simply an idealized case of our more general treatment. In the light of several years' experience in the derivation of constant rate drawdown curves: I would like to point out that the method proposed by Odeh and Jones may lead to confusing answers, particularly if applied over an appreciable time interval. The reason is that, if pressures are measured when a well is flowing, non-linearities in plots like Figs. 1 and 2 can arise due to either (1) changes in the skin factor with time and/or flow rate, or (2) an inhomogeneous reservoir. Separation of these two effects is only possible if some of the pressures used in the analysis are measured when the well flow rate is 0 or, in other words. during brief shut-in periods. REFERENCES 1. Arthur, K. B.. Metunomski, Z. G. and Ruche, Ms "Intetet ct methode d'utilisa tion des mesures de pression [)our Petude des gisemonts" Revue de T'I.F.P. (Nov., 1962) XVII, 1299. 2. Thomere, R. and Arthur, K. R.: "Analysis of the Pressure Bet~avior of a Production Well Subject to Interterence and Its Application to Reservoir Models", Paper SPE 1189 presented at SPE :Amund Fall Mecting Ireld in Denwer, Colo. (Oct. 3-6, 1965).

Jan 1, 1966

By J. H. Carpenter

LMENITE, rutile, zircon, and other heavy minerals are found in small amounts in the sand that covers most of Florida. Small enriched deposits occur on the beaches and coastal dunes. One beach deposit east of Jacksonville was worked during World War I and another near Vero Beach during World War 11. Both ceased operation when the resumption of imports reduced prices. Early in World War II reduction of rutile imports made a domestic source of the mineral necessary to maintain the expansion of armaments. Explorations made near Jacksonville discovered a relatively large body of low-grade ore about 10 miles inland from the beaches. A plant installed by Rutile Mining Co. of Florida using both flotation and tables encountered difficulties because of low plant capacity and organic slimes in the ore. In 1944 Humphreys Gold Corp. solved the problem of concentrating the low-grade ore by using the newly developed Humphreys spiral concentrator and by mining with a hydraulic dredge. This combination of low cost mining and concentration permitted the plant to continue operation in competition with foreign ores when imports were resumed following the war. The success of the Jacksonville operation renewed interest in Florida as a source of titanium. An extensive survey of the state was made by E. I. du Pont de Nemours and Co., Inc., under the direction of J. L. Gillson in 1945 to 1946. Sampling was carried on by drive pipe drilling to depths of 20 to 25 ft. Encouraging values were discovered near the location of the present Trail Ridge mine, 50 miles southwest of Jacksonville, near the town of Starke. The United States Bureau of Mines was interested in exploring for heavy minerals in Florida, and on the recommendation of both the state geologist of Florida and of Du Pont geologists, drilled deeper where marginal indications were found on Trail Ridge. In 1947 it was discovered that sufficiently higher values occurred at depth to make the deposit commercial. The orebody at Trail Ridge is a long sand deposit averaging about 1 mile in width and 35 ft in depth. It is approximately 1 1/2 miles wide at the north end of the portion now being worked, tapering to a blunt point 3 miles to the south. The ore reaches a maximum depth of 65 ft near the center and feathers out into barren sand at the edges. The ground surface is relatively flat and is covered with vegetation including pine, scrub oak, palmetto, and occasionally in swampy areas, cypress. The remain of a dense woody growth underlies and marks the bottom of the Ore 'One. It is difficult to drill through this layer, but in some cases where it is less than 5 ft thick it has been possible to drive through the wood. Sand lying below is coarser than that in the ore zone and contains no values. The wood layer consists of unconsolidated carbonized fragments of branches and other forest trash associated with a considerable amount of ar-

Jan 1, 1954

By John H. Bell

R. B. T. KILIANI, New York, N. Y.-I wish to present some figures based upon actual observation extending over a few months time which seem to prove the author's conclusions. It is a comparison of two machines operating on the same ore, in the same plant, one taking the undersize of ½ -in. screen and the other taking the undersize of 8-mesh. Each of the machines was first operated as a pebble mill, with flint pebbles, in open circuit, then with metal pebbles in open circuit and, finally with metal pebbles in closed circuit. For the first case, the percentage of oversize on 48-mesh, Tyler screen, in the discharge, varied, in the mill taking ½ -in- feed, from 37.2 to 19.9 per cent. The second mill, taking the 8-mesh feed, had a variation in oversize on 48-mesh, from 36.8 per cent: to 0.5 per cent.; so it is seen there is considerable variation in these figures. I have computed the tons per kilowatt-day reduced through 48-mesh for each machine under each one of these conditions, giving 6 sets of figures. The first of these I called 1.0 and determined the ratio of the others to this.. In the snipe way, I figured the relative mechanical efficiency according to Kick's law, using' the figures given by Mr. Taggart in his paper, for ordinal numbers of the Tyler screens. I have also figured the efficiency in mesh-tons per horsepower according to Gates' method by plotting the screen analyses of feed and product and multiplying the area by a constant dependent on the scale used. The commercial efficiency of tons per kilowatt-day reduced through 48-mesh checks very closely with the efficiency by Rittinger's law, within 1 per cent. except in one case. By Kick's law, the efficiency checks fairly closely, within about 5 per cent., with the commercial efficiency of the mill grinding feed, but when we start to grind a finer, 8-mesh material, and especially grinding very fine; with a

Jan 4, 1917

By C. H. Hitchcock

The puiblication by the Institute of a small geological map of the United States calls for an explanation of its peculiarities. The title intimates that it is intended "to illustrate the schemes of coloration and nomenclature recommended by the International Geological Congress." By way of further explanation it is said to be "based, by permission of the Director of the United States Geological Survey, upon the map published in his Fifth Annual Report, the portions not colored in that map being here supplied from other sources." The map referred to was prepared by W. J. McGee, and in the text of the report containing it he has given a list of the authorities employed in the compilation. The scheme of coloration used for the map was the one proposed by the Director, in the Seeond Annual Report, for the publications of the United States Geological Survey, which differed materially from those employed by the older American geologists. Because of the increasing diversity in the particular colors employed to represent rocks by geologists in different countries, and of the existence of very dissimilar schemes of nomenclature, it seemed best to the American Association for the Advancement of Science, at its Buffalo meeting in 1876, to appoint an international committee of geologists, who should consult together, and, if feasible, to call an International Congress to discuss these subjects. The proposition met with favor, and the meeting was called. The first session was held at Paris, in 1878, when geologists were present from twenty different countries. Once organized, the Congress has perpetuated itself, enacting regulations for its conduct, choosing the French language for its medium of communication, and arranging for the compilation of a geological map of Europe upon which the perfected schemes of coloration and nomenclature will be delineated. The American Association maintains a standing committee to represent it at the international sessions, and to report their proceedings. Sixteen countries were represented at the second Congress, at Bologna;

Jan 1, 1887

By V. M. Dobrynin

Experimental data demonstrate that physical properties of porous rocks change under pressure. In this paper an assumption is made and proved that under pressure the changes of physical properties such as porosity, density, permeability, resistivity and velocity of elastic waves are controlled to a large extent by the pore compressibility of rocks. It is also shown that the pore compressibility of rocks can be determined, within the range of pressures from 0 to 20,000 psi, by knowing the maximum pore compressibility and the magnitude of the pressure. Mathematical equations were developed which permit one to define changes in physical properties of porous rocks under pressure. These equations were verified by experimental data obtained from the study of sandstones. INTRODUCTION In studying the behavior of porous rocks under pressure in the field of petroleum technology, the most interesting aspect is the observation of those properties which characterize the rocks as possible reservoirs — for example, porosity, permeability, resistivity, density and the velocity of elastic waves. The literature dealing with this problem mainly contains data concerning the study of only one or at most two of these parameters, but not of the group as a whole. An attempt is made in this paper to find general equations involving each of these parameters, which will permit the study of the behavior of rocks under pressure. All experimental data used here were obtained from the investigation of consolidated sandstones. EXPERIMENTAL In addition to the use of published experimental data, an experiment was carried out which studied the main physical properties of sandstones under pressure. Two homogeneous quartz sandstones were chosen for this purpose: (1) the Torpedo sandstone from Kansas, and (2) the Medina sandstone from Ohio. The porosity of the Torpedo sandstone was 20.2 per cent, and that of the Medina 8.7 per cent. Permeabilities were 45 md and less than 1 md, respectively. Each sandstone contained about 5 per cent clay minerals, consisting mostly of kaolinite and chlorite, which were distributed quite evenly throughout the samples. One cylindrical sample 2 in. in diameter and 5 in. in length was cut from each sandstone and then saturated in a vacuum with a 3N solution of NaC1. This high concentration was used in order to obtain true formation factors and to decrease the swelling of the clay minerals. The methods of mounting the samples and measuring the changes in porosity and resistivity were practically the same as those described by Fatt and Mann.1,2 Changes of resistivity under pressure were studied for sandstones with 100 per cent water saturation, and for sandstones with the irreducible water saturation. The irreducible saturation was obtained by enclosing the saturated rock samples in relatively fine silicate powder so as to remove the water by capillary action. This procedure is described by Orkin and Kuchinski.3 Changes of permeability with pressure were determined at room temperature using nitrogen as the flowing medium. In studying the effects of pressure, one series of measurements was made using an internal pore pressure Pi equal to the atmospheric pressure, while the overburden pressure Pe ranged from 0 to 20,000 psi. A second series of measurements was used over the same range of overburden pressure, but with an internal pore pressure of 1,800 psi. When the results were compared on the basis of net overburden pressure (Pe — 0.85 Pi ), there was practically no difference for these two sandstones. The origin of the factor 0.85 in the expression for net overburden pressure is given by Brandt,4 Fatt5 and Geertsma.6 The relatively large bulk volumes of the sample (about 15 cu in.) made it possible to observe a

By C. A. Heiland

A. INTRODUCTION (C. A. HEILAND) I. PRINCIPLES OF TEMPERATURE COMPENSATION IN MAGNETIC INSTRUMENTS The principle underlying the majority of magnetic intensity variom-eters is a comparison of the force to be measured with another force of known magnitude. The known force may be (a) of a magnetic nature, such as magnetic fields produced by magnets or coils, or (b) of a mechan-ical nature, such as (1) the elastic forces of wires, or (2) the force of gravity, such as employed in bifilar magnetometers and magnetic balances. In instruments of such type, usually a magnetic system is employed, free to move about either a horizontal or vertical axis, on some sort of a suspension. If the earth's magnetic field alone were present, such a system would adjust itself into the direction of the field or that of its components. Owing to the simultaneous action of the comparison force, however, the magnetic needle assumes a position that differs from the direction of the magnetic force; for all such instruments, the angle of deflection a is given by tan a = F/X, where F is the known and X the unknown earth magnetic force component. In other words, the magnetic system merely serves as an "indicator" for the position of balance of the two forces. Considering the matter from this point of view, it is not immediately obvious why the temperature of such a magnetic system should modify the results. In magnetic instruments, we may distinguish two different effects of temperature: (1) a magnetic effect and (2) a mechanical effect. The first is due to the fact that the magnetic moment of a magnet drops with an increase in temperature. This drop is characterized by the temperature coefficient of the magnetic moment µ (see equation 1). The second effect is due to the change in the .torsion of suspension wires with temperature or to the expansion of lever arms of masses acting on magnetic balances.

Jan 1, 1932

By A. T. Goldbeck

THE use of stone as a building material in relatively large blocks is recorded in ancient historical records but only within the past 200 years has broken stone in small sizes begun to have extensive use, principally in highway construction. Tresaguet, in 1764, describing his method for highway construction in France, required the top surface to be built of stone about the size of a walnut, broken by the use of a hammer. It is said that the Romans, in the top layer of their rather massive roads, used large stones bonded together with lime mortar and bedded in small stones mixed with mortar. Much of the early macadam as built by McAdam around 1815 in England was made with hand-sledged broken stone. In 1858, the use of crushed or broken stone received a great impetus from the invention in that year by Eli Whitney Blake of what is said to be the world's first stone crusher. As a consequence of that invention, stone could be crushed to small sizes with considerable ease and, as a natural result, the use of crushed stone in macadam roads and as railroad ballast increased at a great rate. Also, as portland cement came into use, machine-produced crushed stone furnished readily available aggregate. Rapidly, other uses developed, such as for fluxstone in the production of pig iron and for other metallurgical operations and chemical utilizations. These utilizations made for the rapid growth of the crushed-stone industry and this growth is still proceeding with the growth of population and the development of new uses, notably the employment of limestone for the improvement of soils for agricultural purposes. The industries of which the production of crushed stone is a part have a tonnage second only to that of mineral fuel in the mineral industries of this country.

Jan 1, 1949

By A. N. Winchell

Petrographic studies of over 1400 rock and mineral samples, and studies of their field relations, show that there is a complete gradation between sandstone and limestone; the lime-silicate rocks were produced by recrystallization of limestone; mineralization and silicification occurred after silication and at considerably lower temperature; carbonation occurred at still lower temperatures. IN CONNECTION with law suits between mining companies at Bingham, Utah, a few years ago, the writer made petrographic studies of more than 1400 rock and mineral samples in thin sections, and also careful studies of their field relations. In petrographic studies, even when an area is studied intensively, attention is commonly centered very largely on the unusual features of special interest, so that the relative abundance of rock types (or minerals or textures) can only be determined by a study of map areas outlined largely by field methods, and cannot be based directly on microscopic work. It is very uncommon, and usually impossible, to take samples at regular short intervals along and across formations. It is precisely because such methods were used at Bingham that the work presents a rare opportunity for determining, on a microscopic basis, the relative abundance of rock types and the continuity of gradations between rock types. At the same time, a study was made of the alteration of sediments under the influence of igneous intrusions, with results that are believed to be of interest and importance.

Jan 3, 1924

By Frederic E. Carter

THE history of all the civilizations of the Eastern Hemisphere is underlaid and interwoven with the story of gold. Great nations rose, welded by the hand of the conqueror, flourished gloriously because of the wealth of gold inevitably attracted to them, only to fall, either through the sapping of their original virility by the softer living their material prosperity made possible, or by wars made upon them by enemies who craved possession of what was theirs. Imposing fleets sailed the seas, seeking gold or tangible wealth that might be converted into gold. Men suffered untold tortures in its quest. It sent Columbus out into unknown oceans, caused the migration of hordes of people from our Atlantic to our Pacific seaboard in '49 and accelerated the final subjection of our last frontier, probably by as much as a century. The mystic may see both something sinister and something beneficent in this metal that has played such a tremendous part in the shaping of the destinies of men. It has showered blessings and taken them away. It "hath deposed the mighty from their seats and hath exalted men of low degree" and, sardonically, reversed the order yet again. Its peculiar color, its incorruptibility, and its rarity all have contributed to excite the imagination of all races of men. In the Eastern Hemisphere and now in the entire modern world, the predominant emotion excited by gold is avarice. But in the social and economic organization of the civilizations native to the western half of the world, gold has a far different history. Before the advent of the white man, these sun-worshipping peoples saw in the permanently

Jan 1, 1953

By H. J. Hager

The Alabama By-Products Corp. is an entirely independent Alabama enterprise. Organization of the company stemmed from the consolidation of three important properties in the Birmingham District and a by-product coke plant at Tarrant, Ala. In 1924 ABC was merged with the Pratt Consolidated Coal Co. This merger greatly extended the company's holdings of valuable coal lands in Walker and Jefferson Counties.

Jan 12, 1950

By J. D. Forrester

Many have been prone to credit the decline of professional interest in some branches of mineral industry education to the industrialists and other agencies who use our graduates. We hear the cry that industrial salaries are too low, opportunities for advancement do not exist, and the mineral industry specifically and generally is not interested in the engineer's efforts. Perhaps the time now has come when we should "dress-ranks," examine our practices, and publicize and encourage advanced technical training instead of laying all our troubles elsewhere. There can be no doubt but that industry is interested and stands ready and willing to co-operate. This is demonstrated by the numerous grants-in-aid and co-operative industrial projects which have been made available to those relatively few schools which have been encouraging graduate study and research. There is no dearth of research problems in any of the mineral industry fields and the sooner we realize the great opportunities for constructive, technical research in all areas of our profession the sooner we will reap the benefits of our engineering enterprises by closer liaison and broader understanding with industry. An analysis is offered here of the status of graduate work and research in various phases of mineral industry education in the United States. It is

Jan 1, 1949

By Rex W. Woods

The clue history of performance of a highly volatile type oil reservoir which is now greater than 80 per cent depleted is presented. The reservoir is at a depth of approximately 8,200 ft and includes an area greater than 7,500 acres. The reservoir has been exploited by 10 wells which to date have yielded about 10,880,000 bbl of stock tank oil by pressure depletion. Reservoir pressure has declined from an original of 5,000 psi to approximately 1,450 psi. Produced gas/oil ratio has increased from 3,200 to 23,000 cu ft/bbl with a corresponriing increase in APl gravity of the stock tank oil from 440 to 620 . Pressure and fluid data are given for different stages of depletion. INTRODUCTION In papers by Sloan,' and Cook, Spencer and Bo-browski,' properties of highly volatile type reservoir oil were discussed in detail and methods were presented for predicting performance of reservoirs containing this type of fluid. The purpose of this paper is to present performance history of a highly volatile type oil reservoir designated as Reservoir A which has been produced by pressure depletion and field separation without processing of gas GEOLOGY The reterence field which includes Reservoir A is a structural feature north of a trend of major folding along a northeast-southwest axis. In the area of development, the structure has the appearance of a dome with formation dip of three to four degrees, but structural relations between the reference field and the axis of major folding to the south have not been determined. No faulting within the field is evident. Oil and gas productive sands have been found at depths of 7,000 ft to 10,000 ft in a columnar section of Mio-Oligocene age. The sand bodies in the section are lenticular and usually continuity of sand is limited to a small area. Sand A which forms Reservoir A at a depth of 8,200 ft, however, has exceptional continuous development in the reference field. Fig. 1 shows an isopachous map of net oil sand for Reservoir A. Net thickness of oil sand at producing wells ranges from 14 to 34 ft with an average of 22 ft. Pinch-out of sand has been shown by drilling in the southwest part of the field, but extent of the reservoir on the northwest and northeast parts of the field is indicated only by thinning of the sand. The vertical oil column between the highest and lowest producing well in the reservoir is 339 ft. No water-oil contact has been found within the reservoir. As interpreted from the isopachous map, the reservoir includes about 8,900 acres with an average net sand thickness of 12 ft. Because of limited data on extent of the reservoir, the isopachous map permits only an approximation of sand volume in the reservoir. DEVELOPMENT AND PRODUCTION Reservoir A was discovered during 1938 and was developed with eight wells to the end of 1942. One well was completed during 1946 and the tenth well in the reservoir was completed during 1951. Three of the original wells and the last completion have produced from Sand A only. Six wells have produced from Sand A through the casing side of dual completions. Initial producing rates of the original wells ranged from 800 to 1,000 BOPD. Production history for the reservoir is shown in Fig. 2. Production of the reservoir was begun during 1940 and in May, 1952, peak production from seven wells was 5,300 BOPD. At the end of March, 1954. cumulative production was 10.880,000

Jan 1, 1956

THE purpose of this chapter is to present a general outline of the basic open-hearth process for the benefit of students, practicing open-hearth operators, and metallurgists who wish to review the subject. The discussion is limited to a description of the sequence and purpose of the operations, illustrated by data and examples. Subsequent chapters deal with more detailed and fundamental studies of the subject. The function of the basic open-hearth furnace is to convert various types of ferrous material into finished steel of given com- position and quality. In comparison with other steelmaking methods, the basic open-hearth process is one of the most versa- tile, both from the standpoint of the raw materials that can be used and the types of steel that can be produced. The process can be considered as a sequence involving melting, refining, and deoxidation. With some types of liquid-metal charges, the melting stage is not present, but refining and deoxidation in varying degrees are fundamental features of the process. GENERAL DISCUSSION OF BASIC OPEN-HEARTH PROCESS The first consideration in open-hearth practice is the type of charge on which the operation is based. This consists of three components-fluxing, oxidizing, and metallic materials. Fluxes. In the basic process the fluxing material is primarily lime, added in the form of either limestone (CaC03) or burnt lime (CaO) . This is supplemented by magnesia (MgO) and lime from the furnace bottom and banks. The function of these fluxes is to form a slag with the silica (SiO2) , manganese oxide (MnO), iron oxides (FeO and Fe203), and phosphorus oxide (P205) that are produced by the oxidation of varying amounts of the silicon, manganese, iron, and phosphorus in the charge during melting and refining. The slag, composed of the basic fluxes and the neutral and acid oxides, floats on top of the steel bath when the charge is melted. The composition of this slag depends on the amount of each slag-forming element present in the charge and on the extent of oxidation of these elements during the course

Jan 1, 1964

HE purpose of this chapter is to present a general outline of the basic open-hearth process for the benefit of students, practicing open-hearth operators, and metallurgists who wish to review the subject. The discussion is limited to a description of the sequence and purpose of the operations, illustrated by data and examples. Subsequent chapters deal with more detailed and fundamental studies of the subject. The function of the basic open-hearth furnace is to convert various types of ferrous material into finished steel of given composition and quality. In comparison with other steelmaking methods, the basic open-hearth process is one of the most versa- tile, both from the standpoint of the raw materials that can be used and the types of steel that can be produced. The process can be considered as a sequence involving melting, refining, and deoxidation. With some types of liquid-metal charges, the melting stage is not present, but refining and deoxidation in varying degrees are fundamental features of the process. GENERAL DISCUSSION OF BASIC OPEN-HEARTH PROCESS The first consideration in open-hearth practice is the type of charge on which the operation is based. This consists of three components-fluxing, oxidizing, and metallic materials. Fluxes. In the basic process the fluxing material is primarily lime, added in the form of either limestone (CaC03) or burnt lime (CaO). This is supplemented by magnesia (MgO) and lime from the furnace bottom and banks. The function of these fluxes is to form a slag with the silica (SiO2) , manganese oxide (MnO), iron oxides (FeO and Fe2O3), and phosphorus oxide (P2O5) that are produced by the oxidation of varying amounts of the silicon, manganese, iron, and phosphorus in the charge during melting and refining. The slag, composed of the basic fluxes and the neutral and acid oxides, floats on top of the steel bath when the charge is melted. The composition of this slag depends on the amount of each slag-forming element present in the charge and on the extent of oxidation of these elements during the course

Jan 1, 1951