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By D. W. Loughridge

INTRODUCTION Raising capital in the 1990s is a timely subject. However, many of us thought why should raising capital in the 1990s prove to be unlike it was in the 19805, the 1970s, the 1%0s, or earlier? There are a lot of creative people in banking and in corporate treasury departments. New tools and techniques are continuing to emerge, many of which are discussed in other papers in this book. While we have new financing tools at our disposal, the underlying issue has not changed. Projects and investments must be judged on their own merits. If they cannot be justified by conventional financial analysis, they should not be built. If they can be justified, it is likely that the financing will be available. The challenges faced in raising capital in this decade will persist to the next. The issues of the 1980s -- currency fluctuation, disruptive merger and acquisition activity, commodity price volatility, political risk, and debt crisis -- will all persist in an increasingly international business environment. I will focus on the financing we have just completed for the Escondida Copper Project in Chile. The Escondida financing is structured along the classic project financing model developed in the late 1970s, but it deals with issues of the 1980s and the 1990s. The financing was intriguing, not just because of the technical issues involved, but also the challenge of reaching an agreement in a large and diverse group. Escondida had the one essential feature that made its financing possible. It was commercially very attractive. It would produce at low cost a commodity (copper concentrates) that direct consumers felt would be in tight supply. The project had the direct support not only of its sponsors, but also its customers, and, very importantly, its host government. The non- recourse financing of Escondida would not have been possible without the support of these parties, and without the robust economics that made this effort worthwhile. The issue was more complicated. Operations in all parts of the world entail some political exposure. This project is in Chile, where there was a constitutional requirement that a plebescite be held when the project would be in its early stages. This plebescite would determine the fate of a 15 year old military dictatorship. The project is copper, a commodity generally deemed to be in surplus. Copper has a history of price volatility (whose price has varied from $.58 to $1.53 per pound over the past two years). It is politically sensitive, not only in Chile, but in the United States, Canada and other developed countries. The project is international, with all the problems of dealing with a variety of currencies, a variety of cultures, and a variety of laws and commercial practices. The project is also large and capital intensive, with a total cost of U.S. $1.1 billion. ESCONDIDA PROJECT Escondida, the largest known copper ore body in the world, was discovered in March of 1981, by Utah International in a joint venture with Getty Oil Company. In 1984, both Utah and Getty were involved in ownership changes, Utah being acquired by BHP. A later restructuring of the ownership of Escondida resulted in BHP, as manager, carrying a 60% interest, Rio Tinto-Zinc Corporation (RTZ) 30%, and a consortium of Japanese companies led by Mitsubishi Corporation with 10%. The Japanese consortium is incorporated as JECO (Japan Escondida Corporation). This ownership structure, which spread ownership around the world, was the first tangible step toward managing both the commercial and political risk associated with the project.

Jan 1, 1990

By Robert S. Archer

THE proper material of construction for a given purpose is that material which meets the requirements satisfactorily at the lowest ultirnatc cost. It is consistent with this principle that most aluminum castings are made of an alloy containing about 8 per cent. copper. This alloy possesses mechanical properties satisfactory for general engineering purposes together with manufacturing characteristics leading to the production of finished castings at low cost. It is to the aluminum industry what gray iron is to the iron and steel industry. Just as some services require "semi-steel," malleable castings or steel castings instead of gray iron, there is a certain and growing demand for aluminum castings of superior strength or ductility, or both. Since the beginning of .the industry producers and others have sought to develop alloys or processes by which such castings could be made. Out of these efforts have emerged many alloy compositions and special processes, of which only a few have had sufficient merit to survive. It is the purpose of this paper to describe those which seem to the authors to offer the greatest promise for the production on a commercial scale of aluminum castings of superior mechanical properties, with special reference to heat-treated castings. The suitability of an alloy or process for actual manufacture is affected by so many factors that the problem of appraisal is not a simple one. Since this is such an important part of the whole subject it is proposed to discuss briefly some of the requirements. The final verdict is of course the result of commercial trial and experience. It will therefore, perhaps, be profitable to employ a somewhat historical method of treatment in discussing the subject of alloy development. The alloys or processes to be used in the production of aluminum castings are to be considered from the standpoint of their effects on both the utility and the cost of the finished casting. Specific gravity and mechanical properties come under the first head, while the properties

Jan 1, 1927

By Dr. O’Neil Thomas J., Donald W. Gentry

"We can easily represent things as we wish them to be..” -Aesop INTRODUCTION The first eight chapters of this book have primarily addressed the concepts and fundamentals associated with project valuation, particularly as they apply to mining-related projects. Specific emphasis was placed on the engineering and economic parameters and estimates necessary for quantifying line items in pro forma income statements and the subsequent calculation of net annual cash flows. Given these estimates of relative benefits, costs, and annual cash flows for a project, it then becomes necessary to convert these estimates into measures of relative desirability or attractiveness. The criteria and techniques typically utilized to determine project acceptability or desirability are, then, the topics of discussion in this chapter. Before proceeding it may be advantageous to put the problem of project evaluation into proper perspective by reiterating some of the fundamental concepts developed in Chapter 1. The basic premise set forth in this book is that the objective of the firm should be to maximize its value to its owners (stockholders' wealth). This value or wealth is represented by the market price of the firm's common stock; consequently, the primary objective of the firm can be restated as one of maximizing the value (price) of the firm's common stock in the marketplace over the long term. This price, in effect, is an indicator or index of the market's perception of the company's progress and a reflection of the investment, financing, and dividend decisions made by corporate management. These three major decisions are inter- related and jointly impact the market price of the firm's stock. Therefore, if the objective of maximizing the value of the firm to its stockholders is to be achieved, an optimal combination of the three decisions will be necessary. It is important to emphasize that maximizing stockholder wealth is not the same as profit maximization or even the maximization of earnings per share. Corporate managers making decisions based on the objectives of maximizing profits and/or earnings per share must recognize that these objectives do not consider: (I) the timing or duration of expected returns, (2) the business and financial risks of the promised earnings, or (3) the dividend policy of the firm. Obviously all of these factors are of concern to the company's stockholders and will have an effect on the market value or price of the firm's common stock. Maximizing market price per share, or wealth maximization, is therefore the appropriate corporate objective and

Jan 1, 1984

By W. C. McBee, B. W. Jong, T. A. Sullivan

A sulfur concrete technology has been developed by the US Bureau of Mines, where chemically modified sulfur is used with suitable mineral aggregates to produce construction materials that are resistant to corrosion by acids and salts. This report presents a summary of the basic technology and results of testing the materials under actual operating conditions in 50 corrosive environments in 40 commercial plants. After four years of testing, there was essentially no evidence of material degradation or loss of strength. Regular concrete materials were attacked and, in some cases, completely destroyed under the same conditions. Testing is continuing to establish ultimate longevity and durability of the sulfur concretes. The materials are finding widespread applications in metallurgical, chemical, and fertilizer processing plants.

Jan 1, 1986

By A. A. Gustafson

The Freeport Sulphur Co. built a portable crusher in 1944 that solved a problem that none of the crusher manufacturing companies contacted were able to do. Two of these crushers have now been in service for 6 years, giving satisfactory service in handling a million tons per year, and having a capacity of over 2000 long tons per 8-hr shift. These machines reduce ton size blocks of sulphur to 12 in. and also feed the conveyor system at the rate of 350 long tons per hr per machine.

Jan 10, 1950

By R. W. Raymond

I DESIRE to call the attention of the Institute briefly, and by no means in the way of an exhaustive description, to the interesting developments recently made on the east bank of the Hudson River, in the mining of spathic iron ores. The mines to which I refer are those of the Hudson River Spathic Iron Ore Company, situated at Oakhill on Hudson, Columbia County, N. Y., five or six miles from the city of Hudson, and opposite the town of Catskill. The ore occurs in beds, constituting apparently members of the stratified series of rocks on that side of the river, coursing nearly north and south, parallel with the river, and dipping east. The principal out- crops are presented in a range of low hills, about one mile from the river, along the crest, on the western face of which the stratum of spathic ore is more or less exposed. The length of the line in this range, along which, at various openings the ore has been discovered in profitable quantity, is about two miles. To the northward, the hills are somewhat higher, and the stratification may possibly be disturbed, though the rapid examination of the locality which I made in November last did not, include any determination of this

Jan 1, 1876

By R. W. Raymond

I DESIRE to call the attention of the Institute briefly, and by no means in the way of an exhaustive description, to the interesting developments recently made on the east bank of the Hudson River, in the mining of spathic iron ores. The mines to which I refer are those of the Hudson River Spathic Iron Ore Company, situated at Oakhill on Hudson, Columbia County, N. Y., five or six miles from the city of Hudson, and opposite the town of Catskill. The ore occurs in beds, constituting apparently members of the stratified series of rocks on that side of the river, coursing nearly north and south, parallel with the river, and dipping east. The principal outcrops are presented in a range of low hills, about one mile from the river, along the crest, on the western face of which the stratum of spathic ore is more or less exposed. The length of the line in this range, along which, at various openings the ore has been discovered in profitable quantity, is about two miles. To the northward, the hills are somewhat higher, and the stratification may possibly be disturbed, though the rapid examination of the locality which I made in November last did not, include any determination of this

By O&apos, M. M. Fine, K. G. Meara

One of the principal activities of the Bureau of Mines connected with the recent war was to help to increase the supply of strategic and critical minerals. Fluorite was one of the most critical of the nonmetallic minerals because of the increased demand for it as a flux in basic open-hearth and electric steel furnaces and as a raw material for the production of artificial cryolite used in the aluminum industry. Wartime developments in the technology of hydrofluoric acid, such as the use of the anhydrous acid as a catalyst in production of high-octane gasoline and the use of organic fluorides as carriers for insecticides, also increased the demand for acid-grade fluorite.f In 1943 the consumption of acid-grade fluorite was advancing at a more rapid rate than production, and was only slightly less than production during the latter half of the year.' The outlook for the postwar market for fluorite is encouraging. Steel production is expected to remain high until the domestic demand for commodities not manufactured during the war is satisfied. The uses for hydrofluoric acid are expected to increase under the impetus of war-initiated research. In considerbtion of these and other factors some authorities predict a postwar demand for fluorite equal to about 60 to 75 per cent of the wartime production.1,2 Others believe that the postwar fluorite industry will be permanently expanded over its prewar status.3 Acknowledgment This paper is one of many reporting on various aspects of the Bureau of Mines program directed toward the more effective utilization of our mineral resources. The program has been under the general supervision of R. S. Dean, Assistant Director, since July 1942. The scope of the paper falls in the province of the Metallurgical Branch, whose activities embrace the separation of difficultly beneficiated ores, the production of pure metals from domestic deposits, the exploitation of marginal orc reserves, the recovery of secondary metals, and the improvement of present industrial metallurgical practice. The investigation was initiated at the request of Mr. J. H. Steinmesch, vice-president and general manager, Minerva Oil Co., Eldorado, Ill. His hearty cooperation and helpful suggestions, and those of Mr. 0. E. Anderson, mill superintendent,

Jan 1, 1948

By K. G. Meara, M. M. Fine, O&apos

One of the principal activities of the Bureau of Mines connected with the recent war was to help to increase the supply of strategic and critical minerals. Fluorite was one of the most critical of the nonmetallic minerals because of the increased demand for it as a flux in basic open-hearth and electric steel furnaces and as a raw material for the production of artificial cryolite used in the aluminum industry. Wartime developments in the technology of hydrofluoric acid, such as the use of the anhydrous acid as a catalyst in production of high-octane gasoline and the use of organic fluorides as carriers for insecticides, also increased the demand for acid-grade fluorite.f In 1943 the consumption of acid-grade fluorite was advancing at a more rapid rate than production, and was only slightly less than production during the latter half of the year.' The outlook for the postwar market for fluorite is encouraging. Steel production is expected to remain high until the domestic demand for commodities not manufactured during the war is satisfied. The uses for hydrofluoric acid are expected to increase under the impetus of war-initiated research. In considerbtion of these and other factors some authorities predict a postwar demand for fluorite equal to about 60 to 75 per cent of the wartime production.1,2 Others believe that the postwar fluorite industry will be permanently expanded over its prewar status.3 Acknowledgment This paper is one of many reporting on various aspects of the Bureau of Mines program directed toward the more effective utilization of our mineral resources. The program has been under the general supervision of R. S. Dean, Assistant Director, since July 1942. The scope of the paper falls in the province of the Metallurgical Branch, whose activities embrace the separation of difficultly beneficiated ores, the production of pure metals from domestic deposits, the exploitation of marginal orc reserves, the recovery of secondary metals, and the improvement of present industrial metallurgical practice. The investigation was initiated at the request of Mr. J. H. Steinmesch, vice-president and general manager, Minerva Oil Co., Eldorado, Ill. His hearty cooperation and helpful suggestions, and those of Mr. 0. E. Anderson, mill superintendent,

Jan 1, 1948

By R. S. Dean

IN THE COURSE of its investigations directed toward providing strategic metals from domestic sources and toward utilizing power from Federal power projects in West, the Bureau of Mines concluded some years ago that the development of a method for producing electrolytic manganese might well be an important step towards both goals. Accordingly, laboratory investigations were undertaken in 1935. Further studied on a relatively large laboratory scale indicated that electrolytic manganese could be made from domestic ores at a cost not out of line with other nonferrous metals. On the basis of these results, the Electro Manganese Corp. Operating under U.S. Patent 2,119,560 issued to S, M, Shelton and assigned to the Secretary of the Interior for administration, undertook commercial production of electrolytic manganese at Knoxville, Tenn, This company has brought the process through the pilot-plant stage successfully, and is now regularly producing approximately one ton a day.

Jan 1, 1941

By Milnor Roberts

WAR struck the mineral industry of Washington with cross currents that produced a peculiar result. The State's production of coal, industrial minerals, and metals for 1941, valued at $28,507,282, was increased in 1942 under war pressure to approximately $35.000,000. Meanwhile a tremendous demand had arisen for men to construct airfields and many other large projects for the Army and Navy in Washington and Alaska, and Government plants for the mineral industry costing $140,000,000 or more, as well as a call for employees in the U. S. Navy Yard at Bremerton, the sixty shipyards, the four Boeing airplane factories with many auxiliary shops, and hundreds of other plants turning out war materials. In spite of an influx of nearly 300,000 people, causing an increase of 17.1 percent in the population since 1940, according to the Census Bureau, the State clearly is still engaged in an unusual amount of war production in proportion to its population. A large proportion of the workers have been drawn from the mineral industry to the war plants, whether through motives of patriotism, high wages, or, in the Boeing plants at least, the glamour of the operation

Jan 1, 1944

By Earle C. Waite

THE Industrial Minerals Division this year held no individual sessions of its own except the business meeting Tuesday afternoon. One session was held jointly with the Society of Economic Geologists, one with the Milling Methods Committee, and two with the Society of Economic Geologists and the Mining Geology Committee. At all of these meetings the attendance was better than usual and the Tuesday afternoon session, with nearly 400 present, probably set a new record for the Division. Joint sessions seem extremely popular when papers of mutual interest are presented. On Monday afternoon, mica was the predominating subject. The North Carolina mines provided most of the information presented, although the discussion brought out similarities with the New England mines. B. C. Burgess particularly stressed the fact that with the existing curtailment of mica from India it is necessary to get the most mica in the shortest time from the mines in this country. He said that the Colonial Mica Corp. hopes to have 1000 mines operating in the near future. This seems a great number, but when one considers that these mines employ from 3 to 28 men, mostly nearer the low figure, the output of each mine is relatively small. Although the price of mica is from six to ten times the prewar price, the yield of 8 to 150 lb. of mica per ton of raw ore does not provide high returns to the producer.

Jan 1, 1943

By C. A. Meissner

THE following is a further discussion of the paper of James Gayley, " The Application of Dry-Air Blast to the Manufacture of Iron " (Trans., xxxv., 746), with special reference to his sup-plementary paper (Bi-Monthly Bulletin, No. 4, July, 1905, pp. 797 to 819), and. to the paper of J. E. Johnson, Jr., "Notes on the Physical Action of the Blast Furnace " (Bi-Monthly Bulletin, No. 5, September, 1905, pp. 1111 to 1146). Mr. Gayley's paper has been discussed also by E. Windsor Richards, R. W. Raymond, E. H. Saniter, W. J. Foster, H. M. Howe, V. Pendred, B. H. Thwaite, James Gayley and Alexander Pourcel (Trans., xxxv., pp. 1022 to 1042), Joseph W. Richards (Bi-Monthly Bulletin, No. 4, July, 1905, pp. 703 to 718); T. W. Robinson (Bi-Monthly Bulletin, No. 4, July, 1905, pp. 788 to 796) ; C. B. Dudley, R. W. Raymond, J. E. Johnson, Jr., W. F. Mattes, James Gayley, David Baker, John Birkinbine and F. E. Bachman (Bi-Monthly Bulletin, No. 5, September, 1905, pp. 1147 to 1152);.E. de Mille Campbell (Bi-Monthly Bulletin., No. 1, January, 1906, pp. 25 to 50) ; John Birkinbine (Bi-Monthly Bulletin, No. 1, January, 1906, pp. 137, 138). At the Washington meeting of the Institute, May, 1905, a very instructive and interesting paper was presented by Mr. J. E. Johnson, Jr., entitled " Notes on the Physical Action of the Blast Furnace,"' in which reference is made to Mr. Gayley's dry-blast process. A few of Mr. Johnson's conclusions, as summarized in the last pages of his paper, do not appear to me to be in complete accordance with the results obtained at the Isabella furnaces; and I therefore present the following notes which may throw further light on this subject: Mr. Gayley has called attention to the fact that the moisture in the air is an extremely variable and uncertain factor; and

May 1, 1906

By B. A. Wilcox

ThERE are several reports in the literature which indicate that both solid-solution hydrogen and hydride precipitates can promote low-temperature em-brittlement of tantalum.1-3 For example, Imgram et al.2 showed that hydrogen additions in the range of 140 to 580 ppm promoted a ductile-to-brittle transition at slightly above room temperature in both wrought and recrystallized tantalum. This contrasts with the observation that tantalum of norma1 purity is very ductile, even at liquid-nitrogen temperature. Imgram et al. also found that hydrogen additions caused a deterioration of notch tensile properties of tantalum. The purpose of this communication is to present some limited evidence that hydrogen can also cause fatigue embrittlement of tantalum. The material used in this investigation was wrought, stress-relieved (1000°C, 1 hr), are-melted tantalum rod (5/8-in. diameter) containing the following impurities in weight percent: 0.005 C, 0.007 02, 0.0005 H2, 0.003 N2, 0.08 Cb, 0.01 W, and 0.01 Fe. Hydrogen charging was done in an atmosphere of flowing dry hydrogen for 3 hr at 600°C, followed by an homogenizing anneal in purified argon for 15 min at 600°C, and cooling in an argon atmosphere. Typical micro-structures of the hydrogen-free and the hydrogen-charged materials are shown in Fig. 1(a) and Fig. 1(b), respectively. Fig. 1(b) shows the appearance of hydride precipitates which, in many cases, formed preferentially parallel to the rod axis. The hydride dispersion was uniform across the diameter of the specimen. The fact that the precipitate was a tantalum hydride was tentatively confirmed by X-ray diffraction on a metallographically prepared surface. After hydrogen charging, chemical analyses by vacuum fusion revealed the hydrogen content to be 0.0295 wt pct. In addition, the oxygen and nitrogen contents were slightly raised to 0.0095 O2 and 0.005 N2.

Jan 1, 1964

By Frederick G. Coqueron, Joseph E. Pogue

FOR a number of years, the Department of Petroleum Economics of The Chase National Bank has been conducting a study of the capital employed in the petroleum industry. The technique followed is that of combining and summarizing the available financial and operating data for a group of thirty representative oil companies, doing about two thirds of the domestic business of the entire industry. This paper presents the results of the findings for the year 1943, and supplements the survey, "Sources, Disposition, and Characteristics of the Capital Employed by Thirty Oil Companies During the Nine-Year Period, 1934-1942," presented before the Petroleum Division of the American Institute of Mining and Metallurgical Engineers on Feb. 24, 1944, and also published as a pamphlet by The Chase National Bank.

Jan 1, 1944

By A. M. Gow

The trend in ball milling has been toward mills of larger diameter, but without fundamental laws as a guide. The speeds at which mills are run have been a matter of cut-and-try. This paper deals with both diameter and speed and proposes to show the laws which apply to some laboratory ball mills, ranging in diameter from 18 to 42 in., run at various speeds. The correlation of power, speed and grinding rate of the respective mills will be shown by curves of markedly significant similarity. Before presenting the results some consideration will be given to the mechanics of ball milling. Mechanics and Theory of Ball Milling As early as 1904, Herman Fischerl reported observations on specially constructed ball mills which allowed the paths of balls to be studied. The following conclusions were drawn: 1. Balls do not grind the ore, but crush it by impact. 2. At slow speeds the balls roll down the inclined heap, but at higher speeds the balls close to the wall adhere to it until they reach a certain height, whence they are thrown through an arc to the bottom. 3. The falling balls do not come down in clusters, but in series, the balls of each row keeping to their own line of flight according to their distances from the wall while ascending. 4. A further increase in speed results in the balls adhering during the whole of the circuit to the side of the drum. (This centrifuging speed may be called the "critical" speed and may be taken as a reference basis, since it is a constant function of the diameter.)2

Jan 1, 1930

By H. A. Wentworth

THE Huff electrostatic plant of the United States Smelting Company operated in conjunction with its wet concentrator at Midvale, Utah, was the second plant of substantial size installed using the Huff process, and the first plant to be put in operation on the so-called Western complex ores. In spite of the machinery being of early design and consequently embracing many of the mechanical weaknesses incident to a pioneer plant the mill has operated steadily and uniformly since the summer of 1909, about five years now, without any material change other than some re-arrangement of the machinery for better handling of the sizes. The ore, at present coming almost entirely. from the company's mines in Bingham, is of practically the same composition as that upon which the plant was first put in operation. The crude ore, consisting of the sulphides of copper, lead, zinc, and iron, and containing small amounts of gold and silver, is brought by train and delivered to the hoppers of the wet concentrator, where by jig and table treatment, there are produced a shipping lead concentrate, a tailing and a middling product, the latter being conveyed in push cars to the adjoining electrostatic mill. The crude ore delivered to the wet concentrator contains from 6 to 9.5 per cent. zinc. At times the plant is used also for the treatment of custom ores from the Bingham district and elsewhere, and at such times the results of the plant vary according to the material in use, but as by far the larger portion of the product is that from the company's own mines, the results given below are fairly indicative of the general work obtained. The accompanying diagram illustrates graphically the flow of the ore through the electrostatic mill. The middling coming from the wet mill containing from 15 to 18 per cent. moisture is hoisted while on the cars by an elevator, and delivered from the top of the elevator to a hopper over the drier. The drier first installed was of too low capacity to take care of the moisture present in the tonnage to which the mill was later

Jan 8, 1914

By Edward P. Barrett

DURING the past few years numerous references have been made in the technical press and Bureau of Mines Bulletin 270 to sponge iron' and so-called "direct metal" processes. The idea has been prevalent that sponge iron and "direct metals" are cheap commodities. In many instances it has been proposed that these processes be used to treat low-grade ores, utilizing low-grade coals as reducing agents. It is questionable whether or not high-grade sponge iron can be made from low-grade materials. Particles contain¬ing iron oxide and gangue become, upon almost complete deoxidation, particles containing metallic' iron and gangue. The possibility of mechanically separating the metallic iron from the gangue in these particles depends . on the physical characteristics of the particular ore under treatment. Some ores, in which the minerals constituting the gangue break free from the iron oxide upon crushing, may be concentrated magnetically after the iron oxides have been reduced to metal. The finely disseminated ores are least amenable to concentration. In general, high-grade sponge iron can only be made from high-grade raw materials. Sponge iron containing small amounts of sulfur can only be made from raw materials containing small amounts of sulfur or by

Jan 1, 1930

By Lewis M. Haupt

Discussion of the paper of Mr. Granger, presented at the New Haven meeting, February, 1909, and published in Bulletin No. 25, January, 1909, pp. 1 to 37. LEWIS M. HAUPT, Philadelphia, Pa. (communication to the 'Secretary*) :-This subject is of great interest to me, and I am noting progress and conditions as a test of my own judgment in advocating what I believed to be the nearer, cheaper and better route at Nicaraugua. I have as yet learned nothing to change my views, or modify the convictions which led me to retire from the Commission; but that is not the issue to-day. Our government is committed to the Panama route, and is bound to " make good." There are many points presented by Mr. Granger which seem to me worthy of very serious consideration. But when all is said there remains the risk of seismic convulsions, to which either form of canal is subject; and I fail to see that the risk would be reduced by making the cut deeper, with greater surcharge of lateral pressure upon the side walls. A severe earthquake in the rainy season would doubtless close either type of canal. One of the arguments in favor of the Panama route most insisted on, was that Nature had provided good natural harbors at its termini. Recalling this, it has interested me to note that the cost of creating the necessary harbors is estimated at $27,000,000. Mr. Granger refers to this, and quotes the Board's report to the effect that, on the Atlantic side, it will require 5 miles of jetties to " make an excellent harbor out of a wretched one." The vulnerable part of Mr. Granger's paper seems to me to lie in the admission that the plant required is still in the embryonic stage, and that at least one machine should be built and tested " to demonstrate that the theoretical strains and forces work out in practice exactly as expected." This, how-

Jul 1, 1909

By L. F. Elkins

In 1946 Littlefield, Gray and Godbold published a thorough geologic description of the West Edmond Hunton Lime reservoir, located in Central Oklahoma, and discussion of its early performance.l They stressed implications of the nature of the reservoir rock on performance to be expected with production both by natural means and by pressure maintenance with gas injection. The essence of their analysis was that presence of an extensive interconnected system of fractures and solution channels constituting about 10 percent of the total reservoir void space in otherwise very low permeability reservoir rock would result in severe channeling of naturally encroaching water or injected gas through the fractures with little or no benefit to ultimate recovery of oil. Considerations were in progress to unitize the reservoir for pressure maintenance by gas injection. Some other engineers involved in the project had considerably different opinions at the time regarding continuity of fractures and regarding effects of such fractures on performance. The field was unitized Oct. 1, 1947. Subsequently, pilot gas injection tests were conducted in four areas of the field; large scale waterflooding was conducted in two parts of the field in the Bois d'Arc or Upper Hunton; and pilot waterflooding was conducted in the Chimney Hill or Lower Hunton. Full scale water-flooding is now in progress in the Chimney Hill section where it is oil productive. The primary purpose of this paper is to divine some of the secrets of this reservoir through analysis of all aspects of its performance, with the hope that it will be of help to engineers and operators in developing and operating other low permeability fractured reservoirs. In part, this considers variance of actual performance from some widely used conventional reservoir engineering assumptions. For brevity, other aspects of unit operation and its benefits to the owners are not discussed. Oil and Gas in Place For unit participation, net pay in the Bois #Arc defined by the gross SP anomaly on electric logs totalled 2,100,000 acre-ft in the 30,000-acre reservoir. Development of West Edmond predated modem logging techniques that now would be used to determine "net" or "productive" pay. In Fig. 1 this log pick is compared with detailed core analysis and core descripfion by Littlefield et a1.l for one well identified as A on the index map in Fig. 2. Not all of the gross Bois #Arc section had oil staining, but all cores with measureable intergranular permeability were stained. (The committee selection of the Bois d'Arc SP interval also includes the Frisco section as identified from cores by Littlefield.) The Bois d'Arc is oil productive throughout the entire 600-ft monoclinal accumulation from the eastern upstructure erosional pinchout to the west-side oil-water contact. (See Littlefield et al.l and McGee and Jenkins for geologic detail.)

Jan 1, 1970