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R. W. NEWCOMB, New York, N. Y. (written discussion *).-This paper is particularly interesting to me, because it gives data on a much mooted question, viz., the serviceability of Le Chatelier (platinum-platinum-rhodium) thermocouples under severe industrial conditions. It has always been supposed that platinum-platinum-rhodium thermo-couples, used at high temperatures under strong reducing conditions, would not give long service and were subject to rapid volatilization. The fact, however, that the carefully kept records indicate that a little more than 3 gm. out of more than 830 gm. was lost over this considerable period, shows what kind of service can -be obtained from platinum-platinum-rhodium thermocouples,, when properly installed, and well cared for. While the writer has no actual figures on the loss of weight, etc. of platinum-platinum-rhodium thermocouples under service, he was told, by the man in charge of pyrometers at a large industrial plant in which over 400 platinum-platinum-rhodium thermocouples were installed in furnaces doing various kinds of heat-treating work, that the average maintenance cost, for materials alone, including platinum-platinum-rhodium wires and protecting tubes, was 27 c. per furnace, per month:

Jan 12, 1919

By F. E. Bachman

Although it has been apparent to me for a long time that too great weight was currently given to the silicon-contents of foundry-iron, and that the theory of the control by silicon of the carbon-contents of cast-iron is unsound, or that, at best, the influence of silicon is too small to be of much practical value as a guide in foundry-work, it never seemed to me desirable to enter the lists against either the " silicon-fad " or the theory, for the reason that I had neither the time nor the facilities to prove my position, nor any better theory to offer. But since Mr. Summers has taken the step, it seems but right that I should give such facts as are at hand in support of his contention. At the same time I do not think these are enough to prove the case if the contrary proposition were not itself, as it seems to me, based on insufficient evidence. Both Keep's and Turner's conclusions seem to be drawn from irons carrying less than the normal amount of carbon; Turner's " base " being, moreover, a steel rather than a pig-iron, and both the white base and the ferro-silicon of Keep being so low in carbon that compounds of them would not give a material approaching the carbon-contents of a normal casting, and having, therefore, little value as showing the effects of silicon on foundry-irons, even if his samples were treated under the same conditions as those to which pig-metal is subjected in making castings.

Jan 1, 1899

By R. Stanford

In any discussion of steel pouring too often refractories quality assumes a high level of importance. Unfortunately when one considers the many and varied conditions to which pouring refractories are exposed, it is difficult to isolate the true role of refractories quality alone. Some of the more important, yet often overlooked, variable conditions bearing on pouring performance are heat size, tap time and temperature, steel chemistry, ladle additions, ladle height and preheat, mechanical conditions of the pouring mechanism, hot top or non hot topped ingots and, ingot size, which determine total number of shutoffs, direct or tundish pouring, ingot filling rates, metallurgical demands, etc, etc. These considerations apply for either conventional or slide gate pouring of ingots and, to a large extent, even strand casting. In any event probably the most significant factor on pouring performance in any individual shop is what is considered an "OK" pour. We find considerable variance in this qualification, not only between Republic Steel meltshops, but throughout the industry. Therefore, it is a worthless exercise to draw comparisons attributable to refractories quality alone, except for similar conditions in a single shop.

Jan 1, 1972

By W. H. Bassett, J. C. Bradley

In their paper on the directional properties in cold-rolled and annealed commercial bronze,' Phillips and Samans suggest that cupronickel, under distinctly different treatments, shows both "45" ears" and "90" ears. Fig. I shows the ears on some cupronickel cups made some 17 years ago for bullet jackets for small arms ammunition. In this case the material heated to 425° C. had "45" ears, while that annealed at 950°C. showed long "90" ears" when drawn with the same tools. The method of cupping, the shape of cupping tools, etc., were found to have very little influence on the earing tendency, but the deeper the cup was drawn, the higher the ears would be. Method of Manufacture Cupronickel cast bars were 1 in. thick. Ordinarily, they were rolled with numerous passes to a thickness of 0.4 to 0.2 in., according to conditions. They were then given a single intermediate anneal, and rolled to finish thickness, frequently 0.032 in. After a last anneal the material was cupped with a "cut and draw" operation. Progress of this is indicated in Fig. 2, illustrating five different stages at which the drawing

Jan 1, 1933

By Dorsey Lyon

I. INTRODUCTION THE utilization of hydro-electric power in electro-metallurgical indus¬tries, aside from purely mechanical operations, may he of two kinds. The electric energy may be used to supply the heat necessary for the per¬formance of the chemical reactions of a metallurgical process, or the elec¬trolytic action of a direct current may be employed for extraction of metals, either in a reduction process or a refining process. In discussing this subject, it is well to distinguish between established industries, which are producing metals and alloys at a profit by use of the electric current, and the many processes which are either still in the experimental stage or have not even passed the paper stage of development of a patent. That is, we consider electro-metallurgical industries as commercial operations which are now consuming large blocks of electric energy, while processes which are not in commercial operation are only prospective consumers. Also, owing to the difficulty and risk of any attempt to foresee the effect of the European war upon electro-metallurgical industries, we have felt obliged to disregard the war entirely, and state our opinions regardless of its existence.

Jan 8, 1915

By Alden B. Greninger, Alexander R. Troiano

Metallurgists have long believed that martensite in steel forms as plates along the octahedral {111} planes of austenite. Much has been written about mechanisms whereby units of the austenite lattice are pictured as transforming to martensite by shearing movements initiated along the octahedral planes of austenite, supposedly resulting in plates of martensite lying parallel to these planes of shear. A critical inspection of two or three photomicrographs of quenched hypereutectoid steel led us to the conclusion that the orientation habit of martensite, at least in hypereutectoid austenite, could not possibly be octahedral. Inasmuch as recent studies,30,31 of the martensite-type reaction in nonferrous alloy systems have established the irrational orientation habit as characteristic of this type of lattice transformation, the need for a thorough restudy of the crystallography of martensite formation in steel was evident. The present paper reports the results of such a study, extended to include both cementite and some of the products of constant-temperature decomposition of austenite. Also reported are a few of the results obtained from a microscopic and X-ray study of the austempering process in very high-carbon steel. I. The Martensite Transformation Previous Work Microstructure and Crystal Structure of Martensite.—Among the best series of published photomicrographs of quenched steels are those of Whitely,1 Robertson,2 Hanemann and Schrader,3 and Lucas.4 The crystal structure of martensite is body-centered tetragonal, with axial ratio varying from 1 near 0.0 per cent carbon to 1.08 for 1.75 per cent

Jan 1, 1940

By Alden B. Greninger, Alexander R. Troiano

Metallurgists have long believed that martensite in steel forms as plates along the octahedral {111} planes of austenite. Much has been written about mechanisms whereby units of the austenite lattice are pictured as transforming to martensite by shearing movements initiated along the octahedral planes of austenite, supposedly resulting in plates of martensite lying parallel to these planes of shear. A critical inspection of two or three photomicrographs of quenched hypereutectoid steel led us to the conclusion that the orientation habit of martensite, at least in hypereutectoid austenite, could not possibly be octahedral. Inasmuch as recent studies,30,31 of the martensite-type reaction in nonferrous alloy systems have established the irrational orientation habit as characteristic of this type of lattice transformation, the need for a thorough restudy of the crystallography of martensite formation in steel was evident. The present paper reports the results of such a study, extended to include both cementite and some of the products of constant-temperature decomposition of austenite. Also reported are a few of the results obtained from a microscopic and X-ray study of the austempering process in very high-carbon steel. I. The Martensite Transformation Previous Work Microstructure and Crystal Structure of Martensite.—Among the best series of published photomicrographs of quenched steels are those of Whitely,1 Robertson,2 Hanemann and Schrader,3 and Lucas.4 The crystal structure of martensite is body-centered tetragonal, with axial ratio varying from 1 near 0.0 per cent carbon to 1.08 for 1.75 per cent

Jan 1, 1940

By F. P. Dewey

(Read at Amenia Meeting, October, 1877.) AT the Wilkes-Barre Meeting of the Institute, Dr. J. Lawrence Smith, in the course of his remarks on some peculiarities in the composition of irons, alluded to the so-called " buckshot" iron, and exhibited a specimen of this material. He said that when the small granules, or shot, were separated from the mass, they could be flattened under the hammer, and inferred that these particles had been decarburized by the blast before sinking into the hearth of the furnace, and thus we had the exceptional production of wrought iron in the blast furnace. I have recently obtained a characteristic specimen of this variety of iron from one of the furnaces at Orbisona, Pa. Considerable uncertainty existed as to its true nature and the conditions of its production. Its weight seemed to preclude the idea that it contained much or any slag, yet its lack of strength indicated that it was not homogeneous cast iron. At times considerable quantities had been produced, which could only be utilized by charging in the furnace and remelting. The specimen, on the freshly fractured surface, appeared to consist of flattened globules of iron cemented together by a bluish material which one would naturally suppose to be slag, and qualitative examination for lime strengthened this supposition. It was quite difficult to obtain drillings, as there was a tendency to split in several directions as soon as pressure was applied ; but enough was obtained to undertake quantitative determinations. They were found to consist of two portions-one attracted by the magnet, and the other not. By repeated separation the magnetic portion was found to be 94.44 per cent., and the non-magnetic 5.56 per cent. Analyses of these gave the following results :

Jan 1, 1878

By H. J. Rose

In a paper1 presented before this Institute in 1926,I briefly discussed the evaluation of coking coals by means of ultimate analysis. The paper contained several graphic studies in which coal analyses calculated free of moisture, ash, sulfur and nitrogen were plotted on triaxial diagrams in which carbon + hydrogen + oxygen = 100 per cent. From a study of such data for 600 coking coals of the United States, and 150 coking coals of Wales, France and Germany, it was concluded that it was usually possible to predict coking properties and by-product yields with fair success from ultimate analysis. The coals which have proved exceptions to the general rules were found to have physical peculiarities. Run-of-mine Coal It must not be forgotten that run-of-mine coal is a composite material consisting of many constituents differing in physical properties and chemical analysis. A coal sample usually contains: 1. Glossy black coal known as anthraxylon or vitrain. This constituent usually has the strongest coking properties, and the lowest ash content. 2. Dull black coal consisting of attritus containing thin layers of anthraxylon. It is also known as clarain. This constituent, in a coking coal, usually has good to excellent coking properties. 3. Mineral charcoal or fusain. This is a porous black material which is soft and crumbly (unless impregnated with mineral matter) and which has absolutely no coking properties. It is different in every respect from the other constituents in coal. The volatile matter content of mineral charcoal is less than 20 per cent. even when it is associated with high-volatile coals. As would be expected the hydrogen content is low, and the carbon content is high. 4. A coal sample may contain tough gray canneloid material which has a high-volatile matter and a high hydrogen content, but is poor in coking qualities.

Jan 1, 1930

By Frederick G. Bulkley

That portion of the geological structure of the Leadville district which rests upon the Archæan is made up of sedimentary beds of Silurian and Carboniferous formation, consisting of many conformable strata of limestones, quartzites, and shales, which have a total present thickness of about five thousand feet. Interbedded with these strata are found, under somewhat fixed lams of regularity, sheets of intrusive igneous rock,' varying in thickness from a foot or two to several hundred feet. These consist for the most part of various types of felsite rocks, classed, by the sanction of common and long-continued usage, under the general term of porphyries. Mr. S. F. Emmons, in the abstract of his " Report upon the Geology and Mining Industry of Leadville," says in this connection : In their mode of occurrence the type-feature is that of intrusive masses, which are developed on a scale of unprecedented magnitude, and follow certain horizons with remarkable regularity.... It is probable that this mode of occurrence of eruptive rocks, viz., as intrusive masses which originally did not reach the surface but were forced up to a certain horizon and then spread out bettween the beds, is far more common than has hitherto been suspected by geologists. It is difficult to conceive of the conditions under which a fused mass could pry open strata to a width of one thousand feet or more, overcoming the weight often thousand feet of superincumbent rocks, and spread itself out in a continuous sheet between the beds to a distance of ten miles beyond the point or line of eruption. That they did exist, however, can be clearly demonstrated in this region.... In one single section over fifteen sheets, many several hundred feet thick, were counted between the Blue Limestone and the top of the Carboniferous. The region here under discussion is made up of a series of great

Jan 1, 1885

By J. C. Jaeger

It frequently happens in engineering and mining situations that "bad" rock is encountered which consists of rock broken up into blocks a few inches or less in diameter by a network of intersecting joints. These joints may be open, or filled by veins of solid material, or covered with weathering products. Essentially, the material consists of an aggregate of small interlocking blocks. In such circumstances, major joint systems usually can be recognised and studied, but there are probably many minor planes of weakness which may cause the blocks to be of almost random shape. It is extremely difficult to determine the properties of such materials. Measurements on small specimens give the properties of the constituent rock and not the jointed material. At the other extreme, the material has occasionally been tested as loose aggregate in large triaxial pots, but this gives no information about the strengthening effect of the interlocking of the small blocks of rock. One simple approach, which has been much used, is to regard the rock as randomly jointed on a small scale and to apply soil mechanics theory to it. In this case, the normal and shear stress at failure are related by [ ] where the coefficient of friction p and the cohesion c will be those of the individual joints. Even in very bad rock, it is usually possible to drill core in small diameters of 1 to 2 in. which will contain a number of joints, both open and filled. The testing of such joints provides one simple method of determining some of the properties of closely jointed rock and will be discussed in detail in the next section. Calculations based on Eg. 1 with values of c and µ obtained in this way may be expected to give a lower limit for the strength of structures in rock.

Jan 1, 1970

By K. D. Eigenbrod

A case history is presented of a landslide that occurred adjacent to a highway in the valley of the North Saskatchewan River, about 12 miles upstream of Edmonton, Alberta. The slide took place in the late fall of 1965 following excavations associated with highway improvements that deepened the slope and cut it back to 20º. The slide occurred in the Upper Cretaceous Edmonton Formation. Till covers the bedrock at the location. The bedrock consists of interbedded mudstone, claystone, and sandstone with layers of bentonite and coal. The field investigation consisted of a series of pits at the toe of the slide and seven boreholes around it. Undisturbed samples were taken with a Pitcher Sampler and piezometers were installed at various depths in the section. The slide had taken place on a horizontal bentonitic clay layer and it crossed softened mudstone in the back slope. Three piezometric levels were detected but no water pressures were found along the horizontal portion of the slip surface because it was in contact with a free-draining coal layer. Borehole evidence revealed that the bentonitic clay layer was sheared in place beyond the confines of the slide zone. Although this slide was a first-time occurrence, it was part of a much larger slide block that moved presumably when the valley was being formed. Laboratory tests were carried out to determine the shear strength parameters of the bentonitic clay and the back slope material. These parameters together with the observed water pressure distribution in the slide area gave a factor of safety of 1.01 in a non-circular limiting equilibrium analysis. The case history is particularly instructive in indicating the care that must be taken to obtain representative information for stability analysis when geological and groundwater conditions are non-uniform. The origin of the sheared clay is discussed.

Jan 1, 1972

By Wheeler North

THE United Eastern Mining Co.'s property is located in the Oatman, Gold Roads mining district of Mohave County, Ariz. The mine and mill are some 26 mi. (41.8 km.) southwest of Kingman, the nearest railway connection. The ore consists of a mixture of calcite and quartz with some andesite. The values, which are mainly gold, alloyed with approximately 34 per cent., by weight, of silver, are extremely fine so that fine grinding is a most important factor in extraction. The milling process, briefly, consists of single-stage, coarse-crushing, two-stage ball milling in cyanide solution, followed by combined mechanical and air agitation, and by straight counter-current decantation. The Merrill zinc-dust precipitation method is used to recover the values, and is preceded by the Crowe vacuum treatment of the solution. The most notable features of the plant are the absence of filters, and the use of short peb mills loaded with steel balls, for fine grinding. As originally designed, the capacity of the mill was to be 200 tons per day, although the grinding end was to be capable of handling double that amount. By adding extra agitators and thickeners and by some alterations to the grinding end, the daily capacity has been raised to 285 tons. This, it is hoped, may be increased to 300 tons during the warm months of the present year. TONNAGE MILLED PER DAY 1917 average 234 Maximum month 272 Minimum month 146 1918 average 253 Maximum month 276 Minimum month 217 As this article primarily deals with plant operations, those interested in the mechanical description are referred to the article by Mr. Otto Wartenweiler,1 the designing engineer, which gives the details and costs of design and construction. The following changes have been made since that article was published:

Jan 8, 1919

By H. J. Engell, W. Frank, A. Seeger

SWISHER and ~urkdogan' have determined the solubility of oxygen in a iron. They found it to lie between 7 and 10.5 at.-ppm at 881°C. Using earlier work on the permeability of oxygen in bcc iron,' they arrived at the following expression for the diffusion coefficient of oxygen in bcc iron (k = Boltzmann's constant, T = absolute temperature): where The present authors3 have estimated the activation energy QD for the diffusion of oxygen in bcc iron in two different ways from various experimental data.2'4"6 In the first method QD + QS (QS = heat of solution for oxygen in bcc iron in thermodynamic equilibrium with solid FeO) was determined either from data on the reduction of FeO with hydrogen4 or from measurements of the internal oxidation of silicon in a iron.5 Using an estimate of QS from investigations of the oxygen solubility in 6 iron2 (in thermodynamic equilibrium with molten FeO) Q = 0.97 ev or Q~ = 1.06 ev were obtained. From the magnitude of these values it was concluded that oxygen migrates interstitially in bcc iron and that consequently the activation energy QD for diffusion of oxygen has to be identified with the migration energy E~ of the oxygen atoms. Therefore, for a second estimate of QD from the diffusion coefficient of oxygen in 6 iron at 1450" ~,~ we used the theoretical expression:3 (a = length of elementary cube edge, m = mass of interstitially diffusing atom, sM = migration entropy), applicable to diffusion via the octahedral interstices in bcc lattices. Taking sM = 3.8 k (migration entropy of carbon in a iron), one gets Q = 0.90 ev. Hence, in Ref. 3 Q = (0.98 *0.1) ev was proposed as a plausible value for the diffusion energy of oxygen in bcc iron. sM + 9 (9 = solution entropy for oxygen in bcc iron) can be determined from permeability measurements.4 Using the above-mentioned estimate for QS , the following expression for the solubility c (atomic concentration) of oxygen (in thermodynamic equilibrium with solid FeO) in bcc iron was derived: From [4] the solubility of oxygen at 881°C in a iron is calculated to lie between 0.6 and 12 at.-ppm. We see that the solubility determined by Swisher and

Jan 1, 1969

By S. LeFevre

, The solution of the housing and sanitation problem in mining communities, keeping in view both economic and humanitarian aspects, demands the best thought of the management of such enterprises. Upon the solution depend the health and comfort of the employee and his family, and as a consequence his contentment and efficiency. The following description covcrs briefly the methods installed for Witherbee, Sherman & Co. The operation of the system has been for about two years under the direct supervision of T. A. Hammond, Land Agent, and I am indebted to him for a compilation of the results. Sanitation The sanitary service covers 238 tenements. The installation cost was about $22 per tenement, as follows: Privy, $15; privy box, $3; proportion of incinerator cost, $2; garbage can, $2. The operating cost is $1 per month for each tenement. In considering the installation of an ordinary village system of water supply and sewerage two difficulties were encountered: First, lack of a sufficient quantity of water; there is no stream large enough, as Mineville is situated very close to the divide between the Lake Champlain and Hudson River watersheds. A storage reservoir was tried, but the only location available, among glacial hills, would not hold water. Second, the expense of digging ditches for the distribution of water and sewer pipes is so great as to be prohibitive; Mineville is built chiefly in a valley covered in the bottom with drift, in this case a combination of boulders and hard pan. Digging in this material costs 80c. to $1 per cubic yard, and pipes must be placed 41/2 ft. down to be below frost. The houses are scattered along 4 miles of streets, the oldest having been built in the original forest 65 years ago. The newer houses have gone up a few at a time wherevcr a clear space could be found and the slopes were not too steep. This has advantages, as it separates the dwellings into

Jan 1, 1915

By J. B. Clemmer, F. D. DeVaney, H. A. Doerner

PRODUCTION of magnesium metal in the United States during the past decade has increased from less than 6oo,ooo lb. in 1928 to more than 4,800,000 lb. in 1938.1 The growing industry has stimulated interest in methods of production and in sources of raw material. All of the present domestic production is from brines. However, the availability of large tonnages of magnesite in the state of Washington, together with the possibility of cheap power, have created interest in the utilization of magnesite for the production of magnesium metal as well as for other purposes. Magnesite, the carbonate of magnesium (MgCO3), usually is associated with limestone (CaCO3) and dolomite (MgCO3CaCO3). It occurs in crystalline and microcrystalline (sometimes termed amorphous) forms.2 The more common crystalline mineral is found in various shades of white, gray, yellow and brown, the colors being due to impurities, chiefly iron. Magnesite has a hardness of 3.5 to 4.5 and a specific gravity of 3.0 to 3.1. It forms rhombohedral crystals in the hexagonal system, having a vitreous, pearly luster. The quarries and mines of the Northwest Magnesite Co. near Chewelah, Wash., are large producers of magnesite for refractories. The deposits are extensive, some veins being hundreds of feet wide. The boundaries of the veins are indefinite, and the magnesite is interfingered with dolomite. Calcite, talc, serpentine, quartz and shale are disseminated through the deposits. The quality of the ore cannot be determined by appearance or by simple tests; chemical analysis is required. These features make it difficult to determine the boundaries or total quantity of workable ore.3 Only the higher-grade ores are mined, and a considerable proportion of the magnesite content is discarded by hand-sorting and log-washing methods. After calcining, the sorted product meets the specifications for usual refractory material, as it contains approximately 81 per cent MgO, 7 per cent Si02, 6 per cent CaO and 6 per cent Fe203 + A1203. A sample of the reject material had the following analysis after calcining: 65.4 per cent MgO, 6.3 CaO, 21.1 Si02 and 6.5 R203. The percentage reported as R203 includes compounds whose chlorides are acid-soluble but give precipitates in ammoniacal solution that are ignited and weighed. The more common constituents are Fe203, A1203 and Ti02. The sorted magnesite product is not the best grade, even for refractory purposes, and leaves much to be desired for a reduction process. The rejected material contains a large proportion of magnesite. It is apparent that an effective concentration method would yield a higher recovery and a better product. In general, the refractory grade is not suitably pure for other uses. Recent developments in the production of

Jan 1, 1940

By James Terry Duce

In order to facilitate interpretation of the data in this chapter, we print the following excerpts from circulars to authors, compiled by Mr. Frank A. Herald when he was Vice-chairman for Production of the Petroleum Division, and revised in 1939. Generally in Table 1 the unit for prescntation of data is a field. For our purposes a field is defined as the whole of a surface area wherein productive locations are continuous. Such unit commonly includes and surrounds nonproductive areas. Such unit commonly includes a great variety of geologic conditions—several units of continuous productive reservoirs of distinctly different structure and of distinctly different stratigraphy. Therefore it is hoped that our authors will subdivide "field" so as to enable students to make analyses that may have scientific and /or commercial value. As to each spacc in the tabulation, it is citller (1) not applicable, (2) the proper entry is not determinable, (3) the proper entry is determinable, but not determinable from data available to the author, (4) the proper entry is determinable by the author. In spaces not applicable, the author will please draw horizontal lines; in spaces where the proper entries are not determinable, the author will please insert x; in spaces where the proper entries are detcrminable but not detcrminable from data available to the author, the author will please insert y; in spaces where the proper entries are determinable by the author he will, of course, make such entries. Generally, y implies a hope that in some future year a definite figure will be available. Inability to determine precisely the correct entry for a particular space should not lead the author to insert merely y. Contributions of great value may be made by the author in many cases where entries arc not subject to precise determination. In such rases the author should use his good judgment and make the best entry possible under the circumstances. For many spaces, the correct entries represent the opinion of the author (for example, "Area Proved") and in such cases the entries need not be hedged to such extent as in cases where the quantities are definite yet can be ascertained only approximately by the author. In cases under definite headings but where figures are only approximate, the author may use x. For example, if the total production of a field is known to be between 1,800,000 and 1,850,000, the author may report 1,8xx,xxx; or if the production is between 1,850,000 and 1,900,000, the author may report 1,9xx,xxx. Where a numeral is immediately to the left of x or y, such numeral represents the nearest known number in that position. As to quantity of gas produced from many fields the question will arise as to whether the figures should include merely the gas marketed or should include also estimates of gas used in operations and gas wasted. Although rough approximations

Jan 1, 1939

By James Terry Duce

In order to facilitate interpretation of the data in this chapter, we print the following excerpts from circulars to authors, compiled by Mr. Frank A. Herald when he was Vice-chairman for Production of the Petroleum Division: Generally in Table 1 the unit for presentation of data is a field. For our purposes a field is defined as the whole of a surface area wherein productive locations are continuous. Such unit commonly includes and surrounds nonproductive areas. Such unit commonly includes a great variety of geologic conditions-several units of continuous productive reservoirs of distinctly different structure and of distinctly different stratigraphy. Therefore it is hoped that our authors will subdivide "field" so as to enable students to make analyses that may have scientific and/or commercial value. As to each space in the tabulation, it is either (I) not applicable, (2) the proper entry is not determinable, (3) the proper entry is determinable, but not determinable from data available to the author, (4) the proper entry is determinable by the author. In spaces not applicable, the author will please draw horizontal lines; in spaces where the proper entries are not determinable, the author will please insert x; in spaces where the proper entries are determinable but not determinable from data available to the author, the author will please insert y; in spaces where the proper entries are determinable by the author he will, of course, make such entries. Generally, y implies a hope that in some future year a definite figure will be available. Inability to determine precisely the correct entry for a particular space should not lead the author to insert merely y. Contributions of great value may be made by the author in many cases where entries are not subject to precise determination. In such cases the author should use his good judgment and make the best entry possible under the circumstances. For many spaces, the correct entries represent the opinion of the author (for example, "Area Proved") and in such cases the entries need not be hedged to such extent as in cases where the quantities are definite yet can be ascertained only approximately by the author. In cases under definite headings but where figures are only approximate, the author may use x. For example, if the total production of a field is known to be between 1,800,000 and 1,850,000, the author may report 1,8xx,xxx; or if the production is between 1,850,000 and 1,900,000, the author may report 1,9xx,xxx. Where a numeral is immediately to the left of x or y, such numeral represents the nearest known number in that position. As to quantity of gas produced from many fields the question will arise as to whether the figures should include merely the gas marketed or should include also estimates of gas used in operations and gas wasted. Although rough approximations

Jan 1, 1938

By Frank A. Herald

Generally in Table 1 the unit for presentation of data is a field. For our purposes a field is defined as the whole of a surface area wherein productive locations are continuous. Such unit commonly includes and surrounds nonproductive areas. Such unit commonly includes a great variety of geologic conditions-—several units of continuous productive reservoirs of distinctly different structure and of distinctly different stratigraphy. Therefore it is hoped that our authors will subdivide "field" so as to enable students to make analyses that may have scientific and /or commercial value. As to each space in the tabulation, it is either (I) not applicable, (2) the proper entry is not determinable, (3) the proper entry is determinable, but not determinable from data available to the author, (4) the proper entry is determinable by the author. In spaces not applicable, the author will please draw horizontal lines; in spaces where the proper entries are not determinable, the author will please insert x; in spaces where the proper entries are determinable but not determinable from data available to the author, the author will please insert y; in spaces where the proper entries are determinable by the author he will, of course, make such entries. Generally, y implies a hope that in some future year a definite figure will be available. Inability to determine precisely the correct entry for a particular space should not lead the author to insert merely y. Contributions of great value may be made by the author in many cases where entries are not subject to precise determination. In such cases the author should use his good judgment and make the best entry possible under the circumstances. For many spaces, the correct entries represent the opinion of the author (for example, "Area Proved") and in such cases the entries need not be hedged to such extent as in cases where the quantities are definite yet can be ascertained only approximately by the author. In cases under definite headings but where figures are only approximate, the author may use 2. For example, if the total production of a field is known to be between 1,800,000 and 1,850,000, the author may report 1,8xx,xxx; or if the production is between 1,850,000 and 1,900,000, the author may report 1,9xx,xxx. Where a numeral is immediately to the left of x or y, such numeral represents the nearest known number in that position. As to quantity of gas produced from many fields the question will arise as to whether the figures should include merely the gas marketed or should include also estimates of gas used in operations and gas wasted. Although rough approximations may be involved, our figures should represent as nearly as possible the total quantity of gas removed from the reservoir. Wile we have not provided a column for showing the thickness of the productive zone, generally the difference between average depth to bottoms of productive wells

Jan 1, 1935

By K. S. Benson

DEPLETION is a subject of vital importance to the mining industry. Yet, in spite of its importance, its significance is not generally understood. The purpose of this discussion is to clarify the main aspects of the subject from the viewpoint of a metal mine taxpayer. To define the term depletion, it is necessary to distinguish among its various uses. In the economic or geological sense, depletion means the exhaustion of a natural resource. A mineral deposit is a wasting asset and once exhausted is nonrenewable. Millions of years were needed to produce an ore deposit, which may be consumed in a few years and which cannot be replaced except by the discovery of new sources of supply. The wasting asset feature of the mining industry has a vital bearing on the impact of the Federal Income Tax Law on this industry. This is recognized in the law by the various provisions dealing with the depletion allowance, and in this sense the term depletion has an income tax meaning. Depletion from the tax viewpoint means the statutory deduction from gross income designed to permit the return to the taxpayer of the capital consumed in the production and sale of a natural resource. The mining enterprise realizes income on the extraction and sale of minerals and a portion of the income realized represents capital consumed. As the resource is exhausted, the mining enterprise approaches the end of its existence unless new sources of supply can be acquired. Depletion from the tax viewpoint is a creature of statute with limited meaning and application and, in essence, is a method for amortizing the value of the primary asset of a mining enterprise. An example can best illustrate the significance of depletion from the tax viewpoint. Compare a manufacturing concern with a mining company. In computing taxable income of a manufacturing concern, consideraion is given to the cost of producing such income, the principal costs being capital investment for plant and equipment, labor, and raw materials going into the products produced. A mining enterprise, on the other hand, is faced with a different problem because its principal asset is the natural resource which it is producing. In computing its taxable income, consideration is given also to its capital investment for plant and equipment and the cost of labor; but in addition, recognition must be given to the fact that a portion of the proceeds realized on the sale of mineral represents capital. Without such recognition, the mining company would be taxed not on income but on capital and income, and Congress has never intended that capital be taxed as income. Thus, when depletion allowable is referred to in the mining industry, it means the statutory deduction allowable in computing taxable income of a mining enterprise. For guidance the appropriate provisions of the Internal Revenue Code, Income Tax Regulations, and the judicial decisions interpreting and construing them must be examined. It is important to identify and distinguish three methods of determining the allowance for depletion: 1—Cost depletion, 2—Discovery depletion, and 3—Percentage depletion. The basic method is cost depletion and in addition some taxpayers may be entitled to use discovery depletion and other taxpayers may be entitled to use percentage depletion. Discovery depletion and percentage depletion, however, are mutually exclusive and if a taxpayer is entitled to percentage depletion, he is not entitled to discovery depletion. By statute, a metal mine taxpayer is entitled to use cost depletion or percentage depletion, whichever produces the highest deduction. Thus, discovery depletion is merely of academic interest to such taxpayers and to most others. Briefly and broadly speaking, these methods of determining depletion may be described as follows: 1—Cost Depletion: Under this method, the allowable deduction for depletion is based upon the cost of the particular deposit to the taxpayer, unless the deposit was owned prior to Mar. 1, 1913, in which case the taxpayer may use the fair market value of the deposit on that date or actual cost, whichever is higher. This method is sometimes described as basis depletion or adjusted basis depletion, but in this discussion it will be referred to as cost depletion. 2—Discovery Depletion: Under this method, the allowable deduction for depletion is based on the fair market value of the deposit at the date of discovery or within 30 days thereafter and was originally designed to take into account deposits discovered subsequent to Feb. 28, 1913. 3—Percentage Depletion: Under this method, the allowable deduction for depletion is based on a specified percentage of the income realized during the taxable year from a particular property. As stated, the concept of depletion is based upon the exhaustion of a natural resource as distinguished, for example, from the concept of depreciation based on the exhaustion of property used in trade or business. From the tax viewpoint, depletion first became important in the administration of the Corporation Tax Act of 1909, which provided for an excise tax on net income. As soon as this act went into effect, mining taxpayers attempted to claim a deduction for depletion in computing net income although there was no specific mention of a deduction for depletion in the statute. The courts in these cases uniformly held that the statute did not permit an allowance for depletion in computing net income and also held that the provision permitting a reasonable allowance for depreciation did not include depletion. These early cases are quite significant because they establish the principle that the

Jan 1, 1952