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By John Jermain Porter

(San Francisco Meeting, October, 1911.) THE value of any particular ore, coke, or limestone, for iron-making, depends upon its effect, first, upon the quality or value of the resultant product; and second, upon the cost of smelting. The factors under the first head are the percentages of phosphorus, manganese, and other elements, which remain in the pig-iron ; while those under the second head are the percentages of iron, carbon, or lime, the slag-forming constituents, which must be fluxed, and any other ingredients which give rise to variations in cost of fuel and flux. The first of these criteria of value is perhaps not capable of being reduced to a general formula embracing all cases, since it must vary to a great extent with market-fluctuations. For example, Bessemer pig is worth sometimes more and sometimes less than foundry-pig ; and the premium paid for high manganese varies within wide limits. The second, or smelting-value, however, can be expressed numerically with a fair degree of accuracy; and it is with this phase of valuation that the present paper is concerned. The utility of a means of comparing numerically the relative smelting-values of different ores, cokes, and limestones, is self-evident, although it may not have importance in Northern practice, where materials are largely standardized. On the other hand, there are, especially in the South, many furnace-managers who must use a great variety of materials of widely varying grade; and it is with special reference to this district, and in connection with the efficiency-methods which I have elsewhere proposed,1 that the methods herein described were devised.

Mar 1, 1912

By Yisa Liu, Lili Xu, Shina Li, Kang Li, Jiong Dong, Zichen Yin, Ruixin Ma

With the evolving landscape of gold mineral resource development and utilization, the easily treatable gold resources are continuously decreasing, while refractory gold minerals are becoming the most important resources in the field of gold extraction. In these original ores, most of the gold is encapsulated in the lattice of pyrite and arsenopyrite, resulting in difficulty of gold transfer into the solution during the leaching process. The most effective method to solve the problem of insufficient contact between gold particles and leaching reagent is oxidation pretreatment before leaching. Different from traditional high-temperature roasting, concentrated sulfuric acid was used as both an oxidant and leaching agent in a sulfideencapsulated refractory gold ore to decompose the pyrite in the curing environment to expose the gold and improve the leaching efficiency. The experimental results showed that under the conditions of liquid solid ratio 3:1, curing temperature 240 °C and the reaction time 1.5 h, the weight loss rate and iron removal rate of the ore sample reached the highest value of 60.01% and 99.68%, respectively. The main phase of curing residue was Fe2( SO4)3, and silica was nearly the only phase after washing. At the same time, by combining the sodium thiosulfate system gold leaching method, the gold leaching rate increased from 3.67% to 81.30% before and after pretreatment with concentrated sulfuric acid.

Feb 19, 2024

By R. F. Neider, W. R. Bain

"Expanding upon one aspect of a recent paper on ""Fluid Column Roasting at Sherbrooke Metallurgical Co. Ltd.,"" the present paper deals with the operation of the fluid column process to achieve substantial elimination of cadmium and lead during the roasting of pelletized zinc concentrates. Designed to meet the need for additional feed for Matthiessen and Regeler Zinc Company's vertical retort zinc smelter in West Virginia, without recourse to a sintering operation, the plant is capable of simultaneously attaining very low lead and cadmium levels on demand, through operation in the manner described. Fluidizing air admitted via the wind box is supplemented by natural gas admitted via a tuyere bank 15 ins. above the hearth, in quantities adjusted to maintain a reducing atmosphere within the interstices of the bed. In addition, careful attention is paid to bed temperatures, which run from 1,080° to 1,100°C. Under these reducing conditions, 90 per cent of the cadmium and 92 per cent of the lead in the feed are eliminated, the sulphate sulphur content is decreased by 0.5 per cent, sulphide sulphur is held at 0.6 to 0.08 per cent, and the zinc content correspondingly in-creases. The fuel value of the natural gas is recovered as extra steam, which carries a credit. There are some added difficulties with fume accretions, gas conditioning and gas -cleaning, some of which have yet to be overcome."

Jan 1, 1967

By James A. Pendleton

The Legislature of the State of Colorado adopted House Bill 1223, "The Colorado Surface Coal Mining Reclamation Act" (The State Act), in 1979. This Act provided for the creation of a state regulatory program as accommodated within Public Law 95-87, "The Surface Mining Control and Reclamation Act of 1977" (SMCRA). Section 34-33-121(2)(a) of the Colorado Revised Statutes (CRS) and Section 516(b) of Public Law 95-87, identically require the underground coal mine operator to "Adopt measures consistent with known technology in order to prevent subsidence causing material damage to the extent technologically and economically feasible, maximize mined stability, and maintain the value and reasonably foreseeable use of such surface lands, except in those instances where the mining technology used requires planned subsidence in a predictable and controlled manner..." On July 23, 1980, the Colorado Mined Land Reclamation Board adopted regulations to administer and enforce the State Act. Amendments to the Rules, including the subsidence regulations were adopted by the Board in August of 1981. These regulations require the prediction, monitoring and mitigation of "material damage" caused by subsidence.

Jan 1, 1985

By H. W. Wainwright

.1. The purification pilot plant and the equipment, solution, and gas cycle used for removing hydrogen sulfide and carbon dioxide are described. 2. As sulfur recovery is necessary in any large Fischer-Tropsch plant, pilot-plant runs were made at 300 p.s.i.g. to study the efficiency of tri-ethanolamine solutions in removing selectively hydrogen sulfide from gases containing varying amounts of carbon dioxide. 3. Aqueous solutions of TEA of 20, 30; 35, and 50 percent were investi¬gated. Data indicate that 30 to 35 percent is the optimum concentration if both selectivity and economy are considered. Slightly better selectivity is obtained with the.20 percent solution, but steam consumption is greater owing to the higher solution rates. Results from our pilot plant runs indicate that a 50 percent solution not only produces an acid gas of lower hydrogen sulfide content but also requires high solution rates to effect hydrogen sulfide purification. 4. Data from 37 runs using TEA are presented in tabular form. In addition, the data are correlated and presented in three sets of curves. By using these curves, it is possible to calculate the compositions of the purified and acid gases for various raw gas mixtures. 5. In cooperation with the Southern Natural Gas Co., investigations were carried out at 300 p.s.i.g. on the simultaneous removal of hydrogen sulfide and carbon dioxide, from gases using various concentrations of diethanolamine. 6. Data from 17 runs employing 20, 30, and 40 percent DEA are reported in both tabular and graphic form. 7. A comparison of the data from one DEA run made at 200 p.s.i.g. with those from the runs operating at 30O p.s.i.g. shows float the absorption capacity of the solution, and, hence, the steam requirements per gallon are about the sage for both pressures. .The only real advantage of the higher pressure is the additional volume of gas that can be treated. 8. The quantity of steam needed to reactivate fouled TEA and DEA solutions increased as the reactivator pressure was increased about 1,0 to 1.1 pounds of steam was required for each gallon of circulating solution when the reactivator was operated at 5 p.s.i.g. 9. A curve is included that shows the effect of the hydrogen sulfide con-centration in a lean 35 percent TEA solution on the hydrogen sulfide content of the purified gas and on steam consumption for reactivation. 10. Both TEA and DEA reduced the organic sulfur content of the raw synthesis gas considerably. Analyses of the lean amine solutions showed a gradual build up of sulfur compounds, indicating that the compounds formed by the amines and organic sulfur do not break down under the ordinary operating conditions of the reactivator. 11. Considerable operating difficulty was encountered in the pilot plant owing to foaming of the amine solutions. Laboratory experiments in which the effectiveness of certain antifoam agents was studied showed Alkaterge C to be most promising for the particular conditions studied.

Jan 1, 1952

By L. R. Burdick

The Smokescope is an instrument recently developed for determining the density of smoke by shade comparison. The instrument is designed so that the smoke is seen adjacent to two shades of gray corresponding to Nos. 2 and 3 on the Ringelmann chart. Data on smoke density are important in the smoke-abatement field. The method that is specified and accepted as standard for smoke-density determination by the majority of city smoke regulations involves comparing the smoke shade with the four shades on the Ringelmann chart as published by the Bureau of Mines.2/ This investigation was made to determine the accuracy and convenience of the Smokescope. It was conducted as a part of the Bureau I s air-pollution work, which includes the study of techniques that will promote smoke abatement. The accuracy of the Smokescope was arbitrarily defined as the difference between the Smokescope determinations and the determinations by the accepted, standard method and was expressed as Smokescope correction. Although the corrections obtained were strictly correct only for the two observers and the Smokescope of the investigation, they indicate what might be expected from any observer who uses a Smokescope with reference shades that duplicate those of the test instrument. The report is devoted largely to the data on Smokescope correction, which were taken from a single stack under controlled smoke conditions. Field work, which was done at various locations with different stacks, is mentioned briefly in connection with the comparison of the convenience of the two methods. The data for estimating Smokescope correction were taken for the three variables that were expected to affect the results, namely, the density of the smoke, the amount of light, and the color of the sky behind the smoke.

Jan 1, 1955

By Angelina Anani, Nilufer K. B. Akbulut, Sefiu O. Adewuyi

Crucial information about safety, design, and operation can be utilized in underground mines from ground movement data. Communicating the information and exploring new findings can be a challenge in a decade where there is an ever-increasing volume and velocity of data due to advancements in mining technologies. This challenge escalates for geotechnical data as it is multidimensional, depending on the space and the rate it takes place. To tackle this challenge, geotechnical engineers should focus on utilizing simple yet compelling visualization of rock mass data in 3D. Competent visualizations of ground conditions as a Trigger Action and Response Plan (TARP) could ease the communication of safety concerns and the exploration of rock mass displacement and strain surrounding an opening at an underground mine. Therefore, this study focuses on using scientific visualization methods by rendering geotechnical data over the surface of a 3D mesh model to display TARP levels. The study is conducted at the San Xavier (SX) Underground Mine Laboratory’s East decline. The project aims to produce visualizations that optimize the use of geotechnical data in near-real-time.

Feb 1, 2025

By A. G. Provost

On April 3, 1981, Harrison Western Corporation was awarded a contract by Amax Alloy - A Division of Amax Inc., to sink the Henderson #5 ventilation shaft. The project was located on the Henderson Mine site 88 kilometers west of Denver near the town of Empire, Colorado (Figure I). The Henderson No. 5 Shaft, located in an Alpine environment at an elevation of 3145 meters, was a 9.8 meter diameter concrete lined shaft with a total depth of 793 meters. Work started and continued with Harrison Western employees until January 15, 1982. At that time, Amax made the decision to continue the shaft-sinking with their own labor, and with Harrison Western providing supervision under a management service contract. Shaft sinking continued under this arrangement to October 1, 1982, at which time Amax put the Henderson No. 5 project on standby status until further notice.

Jan 1, 1986

By L. Yuan, J. H. Rowland, R. A. Thomas, D. Bahrami

Blasting is the main method of production in many non-coal underground mining operations and produces multiple toxic gases as a result. The Mine Safety and Health Administration (MSHA) requires mine operators to measure the level of toxic gases in mines as frequently as necessary to ensure they are below regulatory safety limits. The current practice uses portable gas monitors to check the concentrations of toxic gases after a fixed post-blast time. This paper studies the application of a gas monitoring system in the return entry of a limestone mine to determine a safe re-entry time. The National Institute for Occupational Safety and Health (NIOSH) conducted such a monitoring program in a limestone mine from September 2016 through May 2018. NIOSH/PMRD (Pittsburgh Mining Research Division) is endeavoring to develop workplace solutions to improve detection of and reduce the risk of hazardous conditions. This study showed that the use of gas monitoring in the return air can be a useful tool at the mine operator’s disposal to detect and reduce the risk of hazardous conditions and also to reliably estimate the re-entry time. INTRODUCTION Underground miners are at risk of overexposure to toxic gases from various sources. Production blasting operations using explosives in underground mines are a source of multiple toxic gases that could be harmful and even fatal to humans if prolonged exposure occurs beyond the safe limits. According to Code of Federal Regulations, Title 30, Part 57.5002 [1], metal and nonmetal mine operators must conduct gas, mist, and fume measurements as frequently as necessary to determine the adequacy of control measures to protect miners from overexposure to harmful gases. MSHA will inspect mine operators’ activities to verify the evidence of such measurements [2,3]. Continuous gas monitoring in the return air is an effective way to make sure that toxic gas concentrations at the working areas are kept below the regulatory limits before the return of miners. Toxic gases can enter the mine atmosphere from different operations, such as welding, combustion, and blasting. The main gases produced from blasting are carbon monoxide (CO), carbon dioxide (CO2), nitric oxide (NO), and nitrogen dioxide (NO2). Other gases are produced in small amounts and, therefore, were not considered for this study. Related regulatory and recommended exposure limits of CO, NO, and NO2 gases are summarized in Table 1 [4].

Jan 1, 2019

By J. Kretschmann, A. Müterthies, T. Rudolph, C. Yang, P. Goerke-Mallet

Catastrophic failures of dams and tailing storage facilities (TSF) have triggered the development of integrated ground monitoring concepts for hazard assessment, risk management and public safety. These concepts are based on knowledge and expertise of persons technically responsible for TSF. The aim is to combine this implicit and explicit knowledge with the data of in-situ- and remote sensors. Risk management for TSF must include a comprehensive monitoring program that integrates data from ground based-, air-borneand satellite-based sensors. Researchers at Technical University Georg Agricola (THGA) in Bochum, and EFTAS, Muenster, Germany, are fusing a variety of sensor data to enhance the capability and performance of TSF monitoring to ensure public safety downstream of TSFs. This paper describes the variety of sensors implemented in numerous research projects. It gives an outlook in terms of planned satellite missions with innovative equipment like hyperspectral sensors. The implementation of the data of these sensors in the analysis will increase the understanding of spatio-temporal impacts of mining activities. Future opportunities are explained by a datacube approach.

Mar 2, 2022

By B Taylor

Although the underground mining environment is arguably safer now than at any time in history, as underground mining operations across the globe increase in-depth, magnitude, and complexity, protecting workers from harm becomes increasingly challenging. In deep, stressed, seismic mines the development face is one of the most hazardous work areas. The active face is usually the furthest extent of the underground workings, so ventilation can be difficult to maintain, exposing workers to high temperature and humidity while working on foot and doing manual labour. While mechanisation has made many tasks easier in modern times, the reality of underground mining is that development charge-up workers still spend long periods directly exposed hazards at the face. In 2019, Orica and Epiroc partnered to co-develop the world’s first fully mechanised development charging unit using fully wireless initiation, called Avatel™. Built on Epiroc’s M2 Boomer carrier platform, the system is designed to allow one person to charge a development face from the safety of a fully enclosed cabin, thereby reducing exposure to hazards at the face. The system was prototyped in Europe before entering commercial introduction in 2022. This paper reviews earlier attempts to mechanise underground charge-up and describes the development journey and engineering challenges of building a mechanised development charging machine.

Mar 29, 2023

By Robert G. Lundquist

This report summarizes all relevant findings and conclusions regarding capabillty of high-energy projectile impact to operate effectively in an open pit mining environment and to successfully handle secondary breakage and bench scaling problems. A silenced, aimable, mobile projectile launcher was designed and fabricated, utilizing a Government-furnished smooth-bore, 90 mm cannon. The silenced launcher was tested at the contractor's test site prior to shipment to ANAMAX Mining Company's Twin Buttes Mine near Tucson, Arizona. Demonstration tests were conducted at an inactive waste dump in the mine on 39 oversize boulders to determine the relationship between boulder size and projectile energy required for secondary breakage. The high energy projectile impact method (known by the acronym REAM -Rapid Excavation and Mining) was tested on an additional 23 boulders in the working mine and on 31 areas of potentially loose rock high on the pit walls. Most of the secondary breakage tests were successful and acceptable for open-pit mining purposes without producing large amounts of fly rock. Five of the 31 scaling tests were successful with one shot, but most of the remainder required two or more shots, and a few could not be dislodged because they were not as loose as they appeared to be, based on visual examination from a distance. Cost comparisons between the REAM method and conventional methods of secondary breakage and bench scaling are discussed. A film documentary, REAM--Mining Applications of High Energy Projectile Impact, has been produced by the contractor depicting the applications of the silenced cannon.

Jan 1, 1976

By Chuck Edwards

"Cameco operates the high-grade McArthur River uranium mine in northern Saskatchewan, and is constructing the high-grade Cigar Lake uranium mine. Cameco has studied the concept of underground milling of high-grade uranium ore. Compared to conventional milling on surface, the underground milling scheme appears to offer significant cost savings and a lower environmental impact. This paper describes the underground milling scheme, presents process flowsheets and plant layouts, and provides an assessment of potential benefits from underground milling.INTRODUCTIONCameco CorporationCameco is the world’s largest uranium producer, with three operations in Saskatchewan (Rabbit Lake mine/mill, McArthur River mine, and Key Lake mill), two in the United States (Crow Butte and Smith/Highland ISL operations) and two new mines being developed in Canada (Cigar Lake project) and Kazakhstan (Inkai project). Cameco provides uranium fuel refining and conversion services at its Blind River and Port Hope facilities in Ontario. Cameco is part owner (31.6%) of Bruce Power that leases eight nuclear power plants located in southern Ontario. Cameco is the majority shareholder in Centerra Gold Inc., which operates gold mines in the Kyrgyz Republic and in Mongolia.Global Uranium Production RequirementsCentral to Cameco’s view of future uranium supply requirements is the belief that the world is experiencing a nuclear renaissance. This belief is supported by a number of developments, including:•,?Countries representing half the world’s population are now constructing new nuclear power plants. Many countries without nuclear power have begun to plan for it, seeking reliability, clean air and energy independence.•,?Accelerated growth for this industry is also becoming much more likely. In Asia, primarily in China and India, 92 reactors are under construction, on order or planned to help meet rapidly expanding economic needs. Other Asian countries, such as Vietnam and Indonesia, with large populations and rapidly growing economies, are also expected to follow.•,?In the United States the “Energy Policy Act of 2005”, the first energy legislation introduced in over a decade, was signed. This legislation includes provisions recognizing, for the first time at a national level, the clean air contribution of nuclear energy and its critical role in meeting energy security. Upon signing this landmark legislation President Bush stated, “We will start building nuclear power plants by the end of this decade.”"

Jan 1, 2007

By I. M. M. W. R. Jones

"THE OBJECT of these notes is to initiate a discussion among the members of our Institution on the connotation of the term 'ore', and to arrive, if possible, at an acceptable definition of the term in the light of its current use by our leading mining engineers, metallurgists, •and geologists.The majority of •authors of well-known modern text-books on subjects dealing with mineral deposits define 'ore' in words which convey the meaning that it is an aggregate of minerals from which one or more metals can, under favourable conditions, be extracted profitably.Many eminent members of the Institution, and of mining and metallurgical institutions in other countries, consider that the term should not be restricted to metalliferous mineral •deposits but can also be applied correctly to certain non-metallic deposits. They believe that the growth, during the twentieth century, in the industrial importance of non-metallic minerals, and the progress made in the mining and the milling of deposits containing such minerals by methods similar to those used for metalliferous mineral deposits, no longer justify the academic restriction of the term to deposits worked for their metal content only."

Jan 1, 1954

By C. P. Mishra

The Bureau of Mines performed a study of the availability of cobalt from market economy countries. The study entailed the detailed analysis of 97 deposits which contain 3.9 billion lb of cobalt at the demonstrated level; in 94 of the deposits cobalt is recovered as a byproduct, and in 3 it is considered the primary product. Since 97 pet of all recoverable cobalt is derived as a byproduct from copper and nickel deposits, the report focused on these two sources. At an assumed market price of $0.89flb for copper, $3.45/lb for nickel, $475/tr 021 for platinum, and $7/lb for cobalt, 1,330 million lb of cobalt at the demonstrated level are potentially available. This total includes 1,105 million lb of cobalt from copper properties, 190 million lb from nickel, 29 million lb from platinum, and 6 million lb from primary cobalt. This analysis indicates that the production cost for 589 million lb of cobalt can be totally covered by the revenues obtained from the other metals produced. The impacts of increases in capital investment and energy costs are also discussed.

Jan 1, 1985

By Goutam H. Shahani

Today, the mining and mineral sectors are being impacted by highly fluctuating supply ? demand, extreme price volatility and tremendous market uncertainty on a world-wide basis. This pattern is expected to continue for the foreseeable future. In particular, large consumers of tonnage quantities of industrial gases (oxygen, nitrogen) all have to make informed investment decisions in this uncertain economic environment. Plant owners ? operators need to carefully examine their current and future industrial gas needs in order to develop the most cost-effective industrial gas plant configuration. This can be done by partnering with an experienced engineering company that offers a complete technology portfolio for producing industrial gases. Ideally, the mineral and engineering companies have to work together as a single team to identify the most efficient and economic plant design. This includes an in-depth assessment of capital and operating costs, in order to deliver an optimal solution, taking plant reliability and process safety into account. It is important to consider all the industrial gas needs at a given manufacturing complex, in conjunction with available utilities and infrastructure to develop the best possible long term solution. Oxygen (O2) requirements include: oxygen enriched and oxy-fuel combustion, smelting and hydrometallurgical operations. Nitrogen (N2) is used for annealing. All of these industrial gas requirements have to be examined at a given site over a long term horizon in a holistic manner. Cryogenic air separation was first practiced at a commercial scale in 1902. Since then, the technology has been constantly refined to reduce cost; and improve reliability and flexibility. Today, using advanced engineering techniques, including proprietary process simulation, and modern fabrication techniques, it is possible to build air separation plants that are both low cost and high quality at the same time. It is important to work with an engineering company that owns a complete portfolio of industrial gas technologies, functional engineering capabilities and a variety of plant solutions. Such a partnership can quickly identify a ?sweet spot? for a given situation. By drawing on experience gained from hundreds of projects, it is possible to quickly optimize a given requirement. In situations where a customer wants a complete solution it may be appropriate to provide an air separation plant on a turn-key basis. This will enable the mining and mineral processor to focus on their core business. By using global procurement and construction capabilities it is possible reduce cost and improve project execution, thereby making industrial gas plant procurement simpler and cheaper for the mining and mineral sector.

Nov 1, 2011

This publication summarizes, for potential contractors and other interested parties, the proposed research, development, and demonstration contract projects programed by the Bureau of Mines for fiscal year 1977 (October 1, 1976-September 30, 1977) under its Advancing Coal Mining Technology program. The objective of these projects is to provide an ordered and sequenced series of advances toward the overall goal of providing the system technology required to increase the productivity of the coal mining process.

Jan 1, 1977

By Nicholas Bonderoff, Amily Xu

The evaluation of battery electric vehicles (BEVs) in underground mines involves comprehensive business case analysis beyond just the capital and operating costs of the equipment itself. BEVs demonstrate benefits from an EHS perspective, reduced mine ventilation costs, lower energy operating costs, reduced overall GHG emissions (dependent on the source of electricity), elimination of DPM, lower equipment maintenance costs, and reduced cooling requirements in deep mines. When including batteries and supporting infrastructure, BEV capital costs are approx. 80% greater than that of diesel equipment. The project economics are highly dependent on the cost of electricity and diesel fuel, and these can vary widely depending on the location of the mining operation. Battery charging and swapping methodologies must be evaluated as there are a variety of approaches that can be employed which vary by manufacturer and type of equipment. Careful consideration of the cycle times, charging methodologies, and location of the battery charging infrastructure is necessary. Specific operating conditions must also be taken into consideration. For example, the time for blast gases to clear will be increased by reducing ventilation flow, and the potential impact on production needs to be evaluated. Similarly, the electrical distribution system needs to be evaluated for peak loading conditions when BEVs are charging. Criteria including maintainability, reliability, commercial availability, and performance need to be evaluated. BEVs have fewer components than diesel equipment and this correlates to lower overall maintenance costs, however, BEVs require maintenance personnel with specific skill sets in order to maintain the equipment. Battery lifecycle costs need to be considered as battery replacement incurs significant capital expense. Some manufacturers offer services to offset these capital costs through usage agreements. Recycling and disposal of batteries at the end of their lifecycles also need to be considered. With the increased selection of BEV equipment that will be available in the next 2-4 years, 100% BEV adoption is also possible. We recommend a holistic approach when evaluating BEVs for underground mines. This will ensure that everything is considered in order to evaluate the full impact of BEV implementation.

Jan 1, 2023

By Bror Nyrnan

Solvent extraction technology and equipment have been developed within Outokumpu since the early seventies. During this period altogether nine solvent extraction processes for molybdenium, zinc, rhenium, cobalt, nickel, calcium and magnesium have been commercially adopted in Outokumpu's metallurgical plants. During last years a new mixer-settler concept based on a "Vertical Smooth Flow" (VSF) principle has been developed. It has also been found to be a good method for copper solvent extraction, decreasing essentially the crud formation and the organic and aqueous entrainments.

Jan 1, 1994

By T. M. Garland

This report presents a more extensive perspective of the calculated profitability of developing and producing crude oil and associated natural gas by primary methods from selected onshore areas of the United States. Estimates were made for cost of drilling, completing, equipping, and producing oil wells at four depths in seven onshore producing areas. A computer program was developed for calculating the discounted cash flow rate of return for the 64 different models in each area resulting from varying the oil-producing rate and production decline rate. The results of these calculations provide data that vividly illustrate the change in rate of return to changes in well depth, initial producing rate, and production decline rate, as well as to variations in development cost and operating expense. Cost per barrel of oil produced in terms of annual cost and total cost is also discussed. Included in the report are explanations of the method of determining costs and the procedure used for profitability analysis. Summaries of all cost estimates and results of profitability analyses are presented in the appendix in tabular form for each of the seven producing areas.

Jan 1, 1972