Coalbed Methane Assessment and Analysis of Produced Water Disposal Options,

Northern Cheyenne Reservation, MontanaProject FEW 4340-72

Shaochang Wo,Principal Investigator

Idaho National Engineering and Environmental Laboratory

Jesse Garcia, DOE Project Manager

Northern Cheyenne Objectives

Determine the best coalbed methane development scenarios and water handling

Environmental Benefit - Water Issues, Northern Cheyenne

Water is of sufficient quality for domestic and livestock uses

The Coalbed water is unusable for irrigation for most of the soils in the area

Northern Cheyenne Project Results

Geology complete

Methane reserves calculated

Produced water to be reinjected in sandstone formations and stored for later use

Gas Environmental Program

Technology and policy solutions for the environmental barriers that limit domestic production

Federal Lands Access Reduce Permitting Times Science-based Stipulations

Coal Bed Natural Gas - Water Issues Treatment Technologies Educational Materials

1995 2000 2005 2010 2015

2006 Provide data on the term effects of coalbed methane production on coal seam aquifers.

2009 Provide impact analyses of coalbed methane production on wildlife species of concern (such as threatened and endangered species) and , where necessary, develop mitigation strategies that allow development to proceed while protecting the environment.

2005 Resolve questions surrounding the environmental effects of hydraulic fracturing.

Goal: By 2010 provide the solutions to current environmental issues and questions that will allow a 25% increase in natural gas produced from coal seams.

Coalbed Methane (CBM)

Issues/Barriers: CBM development, especially in the West, is a fairly recent phenomenon and new issues may arise

Water issues surrounding CBM development, especially in the West, have become an emotionally charged and all barriers cannot be resolved through science or technology.

Hydraulic fracturing continues to be an issue despite strong evidence, endorsed by the EPA, that hydraulic fracturing does not cause contamination of underground sources of drinking water.

The NEPA process in Montana is moving slowly and once it is completed, litigation may cause further delays in CBM development.

2007 Develop best management practices for treating and/or discharging coalbed methane water to the surface.

2006 Provide fate and transport data to determine the environmental impacts of infiltration ponds in the Powder and Tongue River basins.

ADIS AREA METRICSHigh Resolution Reservoir Characterization Using

Seismic, Well and Dynamic Data

New 3D streamline simulator integrates production, seismic, and well log data

Now used in West Texas 10 to 1,000 times faster Potential to enable 400

MMBLS of additional oil and 26 Tcf natural gas from low-permeability reservoirs

Permeability field derived from inversion of water-cut data in the highly heterogeneous North Robertson Unit, West Texas

Mission and GoalsMission: Encourage Maximum Recovery and Use of Domestic

Oil and Gas Resources by Improving Environmental Protection

Provide improved and advanced technologies that enable industry to reduce

compliance costs and improve environmental protectionDevelop sound scientific data to support cost

effective, risk-based regulatory decisions by State and Federal agenciesImprove communication and technology transfer among industry, government, and the publicStreamline regulatory processes to maximize

use of oil and gas

Gas Environmental Program

Technology and policy solutions for the environmental barriers that limit domestic production

Federal Lands Access Reduce permitting Times Science-based Stipulations

Coal Bed Natural Gas - Water Issues Treatment Technologies Educational Materials

Gas Environmental Program (Cont’d)

Federal Lands Access Cultural Resources Modeling

Protects resources and reduces survey time and costs by 75%

Visibility Science Air chemistry data to allow 150% increase wells on Federal Lands in WY

Coal Bed Natural Gas - Water Issues Impoundment Study

States and Federal agencies working together to understand and document the benefits and concerns of infiltration ponds

Educational Materials for Producers, Regulators and the Public CBNG Best Practices Manual Permitting Handbook CBNG Primer for the General Public