United States
Environmental Protection
Agency
Air and Radiation
6202J
EPA 430-D 95-001
September 1996
REDUCING METHANE EMISSIONS FROM
COAL MINES IN RUSSIA:
A HANDBOOK FOR EXPANDING COALBED METHANE
RECOVERY AND USE IN THE KUZNETSK COAL BASIN
Public Review Draft
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REDUCING METHANE EMISSIONS FROM
COAL MINES IN RUSSIA: A Handbook for
Expanding Coalbed Methane Recovery and Use
in the Kuznetsk Coal Basin
Public Review Draft
SEPTEMBER 1996
ATMOSPHERIC POLLUTION PREVENTION DIVISION
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U.S. ENVIRONMENTAL PROTECTION AGENCY
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Disclaimer
This document has been reviewed in accordance with the U.S. Environmental Protection
Agency's and the Office of Management and Budget's peer and administrative review policies
and approved for publication. Mention of trade names or commercial products does not
constitute endorsement or recommendation.
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TABLE OF CONTENTS
LIST OF FIGURES ii
LIST OF TABLES ii
LIST OF BOXES ii
ACKNOWLEDGMENTS iii
ABBREVIATIONS AND ACRONYMS iv
OVERVIEW AND SUMMARY 1
PART ONE: COALBED METHANE POTENTIAL OF THE KUZBASS
CHAPTER 1 - THE RUSSIAN COAL INDUSTRY 3
1.1 STATUS OF THE INDUSTRY 3
1.1.1 Structure Of The Coal Industry 3
1.1.2 Economics Of The Industry 5
1.1.3 Restructuring Of The Coal Industry 6
1.1.4 Environmental Issues In The Coal Industry 8
CHAPTER 2 - COAL AND THE ENERGY SECTORS OF RUSSIA AND THE KUZBASS 10
2.1 ENERGY TRENDS IN RUSSIA AND IMPLICATIONS FOR THE KUZBASS 10
2.2 THE ENERGY NEEDS OF THE KUZBASS REGION 12
2.3 THE ROLE OF COALBED METHANE IN THE KUZBASS 16
2.3.1 Potential Contribution Of Coalbed Methane To The Mining
Economy 16
2.3.2 Encouraging Development Of Coalbed Methane 17
CHAPTER 3 - COALBED METHANE RESOURCES OF THE KUZBASS 19
3.1 KEY CHARACTERISTICS OF KUZBASS COAL PRODUCTION ASSOCIATIONS 19
3.2 COALBED METHANE RESOURCE ESTIMATES 19
3.3 METHANE RECOVERY AND USE 22
3.4 COALBED METHANE PROJECT OPPORTUNITIES 23
PART TWO: PROFILES OF SELECTED COAL PRODUCTION
ASSOCIATIONS AND MINES
COAL PRODUCTION ASSOCIATION AND MINE PROFILES USER'S GUIDE 26
KUZNETSKUGOL COAL PRODUCTION ASSOCIATION 30
Abashevskaya Mine 34
Baidaevskaya Mine 38
BELOVOUGOL COAL PRODUCTION ASSOCIATION 42
Chertinskaya Mine 45
LENINSKUGOL COAL PRODUCTION ASSOCIATION 49
Kirov Mine 51
Komsomolets Mine 55
Oktyabrskaya Mine 59
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TABLE OF CONTENTS (CONTINUED)
REFERENCES CITED 63
Appendix A - Forming a Joint Venture A-1
Appendix B - List of Contacts B-1
Appendix C - Explanation of Russian Classification Systems Used C-1
Appendix D - For More Information D-1
LIST OF FIGURES
Figure 1-1. Major Hard Coal Basins of Russia 4
Figure 1-2. Hard Coal Production in Russia 10
Figure 2-1. Location of Coal Production Associations in the Kuzbass 27
Figure 2-2. General Stratigraphic Section of the Coal-Bearing
Sequence in the Kuzbass 28
Figure 2-3. Kuznetskugol Coal Production Association 31
Figure 2-4. Belovougol and Leninskugol Coal Production
Associations 43
LIST OF TABLES
Table 1-1. Fuel and Energy Consumption in the Kemerovo Oblast 14
Table 1-2. Fuel and Energy Consumption by the Industrial
Sector, Kemerovo Oblast 15
Table 1-3. Key Characteristics of Kuzbass Coal Production
Associations 20
Table 1-4. Estimated Methane Resources Associated with Kuzbass
Coal Production Associations 22
Table 1-5. Short, Medium, and Long-Term Coalbed Methane Resource
Development Project Types for the Kemerovo Oblast 24
Table 2-1. Summary Data for Active Mines of the Kuznetskugol
Coal Production Association (1993) 32
Table 2-2. Summary Data for Mines of the Belovougol Coal
Production Association 44
Table 2-3. Summary Data for Active Mines of the Leninskugol Coal
Production Association 50
Table A-1. Documents Required for Various Enterprise Types A-3
Table C-1. Comparison of Resource Classification Systems C-1
Table C-2. Comparison of U.S. and Former USSR Coal Classification
Systems C-2
LIST OF BOXES
Box 1. Free Economic Zones 12
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ACKNOWLEDGEMENTS
U.S. EPA acknowledges Raven Ridge Resources, Incorporated, for authoring this handbook,
and the members of the following institutions for their important contributions to this document:
Partners in Economic Reform (PIER), The Coal Project
The Skochinsky Mining Institute
The Energy Research Institute
The Eastern Mine Safety Research Institute
The Ministry of Fuel and Energy
RosUgol
Belovougol Coal Production Association
Kuznetskugol Coal Production Association
Leninskugol Coal Production Association
Abashevskaya Mine
Baidaevskaya Mine
Chertinskaya Mine
Kirov Mine
Komsomolets Mine
Oktyabrskaya Mine
Many other Russian experts also provided assistance.
in
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ABBREVIATIONS AND ACRONYMS
Weights and Measures: All units are metric system (S.I.)
Goal
Gwh
kcal
kg
km
km2
kt
MWh
m3
PJ
t
Acronyms
CIS
CPA
CO2
EEER
EIA
EPA
GDP
GEF
1C
IEA
IFC
JV
NIS
PIER
ROM
IDA
USAID
USDOE
UNECE
WB
VAT
gigacalorie = billion calories = 10 calories
gigawatt hours = billion watt hours = 109 watt hours
kilocalorie = thousand calories = 103 calories
kilogram = thousand grams= 103 grams
kilometer
square kilometer
kilotons = thousand tons = 103 tons
megawatt hours = million watt hours = 109 watt hours
cubic meters
petajoules
tons
Commonwealth of Independent States
coal production association
carbon dioxide
East European Energy Report
Energy Information Administration
U.S. Environmental Protection Agency
gross domestic product
Global Environmental Facility
internal combustion
International Energy Agency
International Finance Corporation
joint venture
Newly Independent States
Partners in Economic Reform
run-of-mine
Trade Development Agency
United States Agency for International Development
United States Department of Energy
United Nations Economic Commission for Europe
World Bank
value added tax
IV
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OVERVIEW AND SUMMARY
This report provides basic information concerning the potential for expanding coalbed methane
development in the Kuznetsk Basin (or Kuzbass, as it is commonly known) of Russia. The US
Environmental Protection Agency (EPA) prepared this study to focus attention on the need for
development of the coalbed methane resources present in the Kuzbass. Although US
companies have expressed some interest in the Kuzbass, it remains relatively unknown to
many potential investors and funding agencies.
This study follows up a previous EPA report, titled Reducing Methane Emissions from Coal
Mines in Russia and Ukraine: The Potential for Coalbed Methane Development, which focused
on general aspects of the potential for coalbed methane development in these republics. The
previous study, published in 1994, indicated that there appear to be many opportunities for
Kuzbass mines to develop profitable projects to expand the recovery and use of coalbed
methane. Coalbed methane is a valuable resource needed by the region as an alternative to
more polluting fuels, particularly lignite and low-quality hard coal. Currently, some of the coal
mines recover methane, but no mine uses it, and more than 1 billion cubic meters of methane
are released to the atmosphere annually.
The study estimated that, using demonstrated technologies such as pre-mining degasification
and gob well recovery, Kuzbass coal mines could recover and use 50 percent or more of the
methane currently being liberated by mining. Additional recovery could be achieved by
employing an integrated approach to methane recovery, including drainage prior to, during,
and after mining. There is significant potential for increased methane use, moreover, even
without expanding methane recovery. Currently, Kuzbass mines recover and release nearly
196 million cubic meters of medium-quality methane annually. Introduction of methods to
improve gas quality, and use medium-quality fuel for power generation other purposes, could
reduce these emissions.
The present study identifies attractive coalbed methane projects in the Kuzbass and explores
the key issues related to project development. This report concludes that:
Local mining industry officials want to recover more coalbed methane and use it to
meet some of their fuel and energy requirements;
Local and regional government officials support development of this local natural
gas resource, viewing it as a necessary step toward rehabilitation of the
environment, and the local mining industry;
Development of coalbed methane resources will require not only the participation of
private enterprise, but comprehensive technical and developmental assistance
programs that will provide expertise and technology;
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Funding is needed for implementation of new projects to develop coalbed methane
resources owned by coal mining enterprises. Limited funding for development of
new technology, or simply the implementation of existing technology, is available
from the Russian government.
This handbook discusses the impact of prevailing economic and political conditions on the
development of coalbed methane projects. It provides information on three coal production
associations and six mines that are part of these associations. This information should help
companies and institutions become familiar with some aspects of the mining operations and
associated coalbed methane projects that could be developed. The information in this
handbook can help potential project developers identify the best projects that will demonstrate
the economic, environmental and safety benefits of coalbed methane.
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PART ONE: COALBED METHANE POTENTIAL
OF THE KUZBASS
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CHAPTER 1. THE RUSSIAN COAL INDUSTRY
The ability to develop attractive coalbed methane projects in Russia depends on the state of its
coal industry. This chapter describes the Russian coal industry, with emphasis on conditions in
the Kuznetsk Coal Basin (Kuzbass). Located in south-central Russia (Figure 1-1), the Kuzbass
is the republic's largest and most important coal producing basin, and the sustained production
and economic efficiency of its mines are significant to Russia in both economic and political
terms. In addition to improving mine safety, increasing the recovery and use of methane from
Kuzbass mines will increase profitability, an especially important benefit as the coal industry
struggles to adjust to a market economy.
1.1 STATUS OF THE INDUSTRY
The Russian coal industry has been affected by restructuring and reorganization processes
that have intensified since 1991. Although the industry continues to be financially controlled
from Moscow, regional officials within both local governments and the coal industry now wield
greater influence over policy implementation. The roles of the "center" and the "regions" in
administering the industry, and the need for and progress of reform, are described below.
1.1.1 Structure of the Coal Industry
In recent years, the coal industry has been undergoing a dramatic transition from a centrally
planned system to one based on free market principles. Since early 1992, the Russian coal
industry has been under the auspices of a Coal Committee within the Ministry of Fuel and
Energy (PIER, 1993). RosUgol was established in December 1992 to help with the transition
of the Russian coal industry to a market-based economy.
The functions of the institutions guiding the restructuring of the Russian coal industry include
(PIER, 1993):
Ministry of Fuel and Energy:
oversees the coal industry;
acts as a conduit between RosUgol, coal associations, Ministry of Finance,
and other Ministries of the Russian Federation; and,
coordinates with other energy sector development organizations.
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SCALE
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RosUgol:
allocates subsidies
oversees exports and marketing
oversees equipment purchases
coordinates coal association directorship
addresses social guarantees
implements mine closure programs
oversees accounting systems
Coal production associations (CPAs) also play an important role in guiding policy decisions
concerning the coal mining industry. The general director of a CPA often holds more power
than political leaders within a region (Sherer and Clarke, 1994). The primary responsibilities of
a coal production association, each of which administers one or more mines, are:
to address problems common to the mines, such as safety and health conditions, and age
and condition of the mining equipment;
procurement for the mines;
negotiations with government agencies; and,
implementation of safety and environmental regulations.
Within each CPA are coal mines and related enterprises. Russia has approximately 245
underground mines, 66 surface mines, 70 preparation plants, and 1,200 ancillary enterprises
for the construction and repair of mining equipment, industrial work, and rail and road
transport. The Kuzbass contains 73 active underground coal mines, 24 surface mines, and
more than 200 related enterprises. Many of Russia's coal industry enterprises have recently
been transformed into joint stock companies, as described in Section 1.1.3 below.
1.1.2 Economics of the Industry
In order to comprehend the severe problems facing the Russian coal industry, it is necessary
to examine several factors that have contributed to its lack of profitability. These include "social
guarantees", inter-industry indebtedness, subsidies, and price controls.
Coal production associations historically have provided goods and services (or, as they are
called in Russia, "social guarantees") such as housing, heating, education, agricultural
products, medical care, and pre-school care to the local mining community. For example, the
Mine Director of the Volvok Mine, which employs 1,885 people, is required to provide social
services to a settlement of 8,000, many of whom are pensioners from other areas. This large
degree of social services provision is a key factor contributing to the economic inefficiency of
the mining industry.
Inter-industry indebtedness has had a devastating effect on the coal industry. Because of late
subsidy payments and other economic problems, coal mines have had to borrow heavily to pay
their bills for industrial expenses (energy and equipment), as well as the provision of basic
needs: As of 1993, Russian coal mines owed 1.5 billion rubles to other industries for items
ranging from food to mining equipment (Moscow Times, 1993). In addition, similar problems
plague the industries that buy the coal. The result has been a cycle of indebtedness: the
customer can't pay for the coal, so the mines cannot pay their workers on time, purchase
supplies, or replace or maintain equipment.
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One of the primary factors prompting reform of the Russian coal industry is that it is heavily
subsidized, a problem that contributes to low productivity and inefficiency. Subsidies to the
coal industry consume more than 1.2 percent of GDP (Craig et al, 1994), and in 1994
amounted to the ruble equivalent of $US 2 billion (IEA, 1995). The need to deal with the
budget crisis resulting from these subsidies has been a driving force in the Russian
government's desire to restructure the coal industry. The International Monetary Fund (IMF)
and World Bank are also urging reform of the subsidy system; a World Bank report (Craig et
al, 1994) asserts that the current system of coal subsidies is blocking rather than assisting the
process of restructuring.
Traditionally, subsidies have been based on production costs, in addition to the operating
costs of other enterprises and social services provided by the mine (or its coal production
association). Therefore, the highest subsidies were provided to the highest-cost mines,
providing a strong disincentive to improve efficiency. Subsidies were acquired by RosUgol from
the government, which then distributed them to the coal mines, without any government
monitoring.
With the "liberalization" of coal prices, however, the system of federal subsidies was
reorganized (IEA, 1994). The liberalization law (Government Decree No. 727, July 1993)
effectively states that as of July 1, 1993, coal prices are no longer directly fixed by the
government; instead they are fixed indirectly by the amount of subsidies paid to the producers.
The new system makes an attempt not to pay indiscriminately on a per-ton basis for all the
losses of an enterprise. The government is monitoring coal production associations, and urging
them to improve their cost record or to reduce production.
1.1.3 Restructuring of the Coal Industry
In light of the severe problems facing the coal industry, the Russian government is undertaking
a restructuring program that includes a plan to close the most inefficient mines and reorganize
the remainder. Estimates of the resulting impact on employment range as high as a loss of
300,000 jobs in the industry over the next ten years (PIER, 1993). The prospect of these
dramatic personnel reductions is further complicated by the fact that mine employees are
dependent on the mining enterprises for the social guarantees described above.
According to a RosUgol (1994) document, the main elements of its proposed coal industry
restructuring program are:
1. Increasing efficiency by narrowing the criteria for coals that are considered
mineable. The criteria include those related to seam thickness, dip, ash content,
and gas hazard.
2. Adopting pricing, taxation, and customs policies that will ensure that a sufficient
amount of coal is sold in international and domestic markets.
3. Closing the most unprofitable mines, and giving profitable mines the highest priority
for financial assistance.
4. Providing new jobs for displaced workers, and paying off pensions.
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5. Removing auxiliary enterprises (such as agricultural units, medical facilities, dining
facilities, coal industry equipment manufacturing plants) from the responsibility of the
mines.
6. Mitigating environmental problems associated with the coal industry, using experts in
environmental remediation as well as displaced mine industry personnel.
7. Establishing property ownership and stock companies to provide effective use of capital.
8. Reducing the state's role in controlling enterprises, optimally combining market and state
mechanisms.
9. Modifying the coal industry statistics reporting system to one which fully discloses the
financial and economic aspects of the industry, in conformance with systems used by
Western-style economies.
10. Creating a legal framework to secure the industry's structural modification, giving first
priority to the legal confirmation of state-supported status for the coal industry through
the federal budget, and creating legislation for solving social, technical and economic
problems.
RosUgol estimated that accomplishing the above will result in:
Producing 366-374 million tons of coal per year, enough to meet the public's needs of
280-285 million tons per year through the year 2000, while providing additional coal for
sale on the world market.
Improving coal industry productivity, by closing 38 failed enterprises1. Presently,
profitable mines account for 49 percent of all coal production, stable mines for 41 percent
of the production, and unprofitable mines for 10 percent of all production. By the year
2000, these proportions will change so that profitable mines will account for 61 percent
of all coal production, stable mines for 38 percent, and unprofitable mines for only 1
percent.
Reducing the number of workers involved in the coal industry to 30 percent of present
levels by the year 2000, and increasing labor efficiency by at least 3 times its 1993 level.
Improving overall socioeconomic and environmental situations in coal mining regions by
diversifying their economies, creating about 30,000 new jobs by the year 2000. Some of
the workers displaced by mine closures will be involved in developing new, highly
productive deposits, while others will be employed in environmental cleanup efforts. The
RosUgol document does not provide further details regarding creation of jobs for
displaced mine workers.
As part of its efforts to improve efficiency, RosUgol began working in 1993 to buy more mining
equipment from Russian companies. As a result, imports from Ukraine and Kazakhstan
decreased from 40 percent in 1992 to 27 percent in 1995. According to Rosugol Deputy
1 According to a more recent (July 1995) press release, RosUgol's director Yuri Malyshev stated that the
program intends to close 70 coal mines by 1998, and a total of 100 mines in the long term (about five to
ten years) (EEER, 1995). It costs about 60 to 70 billion rubles ($US 14-16 million) to close one mine.
Federal budget spending to support the closure program is expected to reach 14 to 22 trillion rubles ($US
3-5 billion).
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Director Yanovsky (1996), more than 40 types of formerly imported mining equipment are now
produced in Russia.
In addition to increasing the efficiency and profitability of coal mining, another primary goal of
industry restructuring is to lay the foundation for privatization of the industry. The government
has been transforming coal industry enterprises into joint-stock companies, more than 500 of
which have been established thus far (Yanovsky, 1996). According to an agreement with the
State Property Committee, RosUgol exercises commercial management of the state-owned
stock in 337 of these companies.
RosUgol itself was reorganized into a joint stock company in February 1996. The purpose of
this reform, according to the presidential press service, is to improve the structure of the coal
industry, encourage competition in coal markets, attract investment, and speed up reforms
(EEER, 1996). Company stock will be retained in federal ownership for three years; no
decision has yet been taken on ownership after the three-year period.
Recently, there have been indications of an upturn in the coal industry. According to RosUgol
director Malyshev (Moscow Times, 1995; EEER, 1995), data from the second quarter of 1995
indicate that state subsidies decreased from 80 percent of revenue in 1994 to 24 percent in 1995,
as the industry proceeds with mine closures, layoffs and reductions in output. But miners' demands
for unpaid wages and Russia's nonpayment crisis still saddle the industry with heavy burdens. For
example, Ministry of Fuel and Energy officials have often failed to make subsidy payments to coal
concerns on time. Russian miners have gone on strike several times in the past few years to protest
arrears in wage payments. A recent example is the February 1996 coal miners' strike, where miners
protested the 970 billion rubles owned by the government for overdue wages in 1995 and January
1996. In this case, the government's response to the strike was immediate, and within five days
most of the miners had returned to work. President Yeltsin has instructed the government to set up
special funds and reserves for payment of salaries to the staff of budget-financed coal enterprises.
The miners are not convinced that the government will pay its debts, however, and are prepared to
walk out again if the schedule for the payment of wages is broken (EEER, 1996).
RosUgol considers restructuring of the Kuzbass to be a priority. Since 1994, it has been
directing support to selected enterprises as part of its restructuring strategy (Yanovsky, 1996).
This includes considerable assistance to two Kuzbass coal production associations (Kirov and
Komsomolets) and one independent mine (Raspadskaya). Additional plans call for closure of
11 unprofitable Kuzbass mines, whose total output is currently 10 million tons per year, and
opening of new mines with an annual production of 25 to 30 million tons. RosUgol says that
these new mines will operate without subsidies.
1.1.4 Environmental Issues in the Coal Industry
Mining activities and waste disposal from mines have caused environmental damage to areas
surrounding mines throughout Russia. Impacts such as soil damage, depletion of water
resources, contamination of underground and surface water reservoirs, and air pollution are
some of the leading environmental problems caused by the mining industry.
Taken as a whole, the environmental damage in Russia's mining regions, and the Kuzbass in
particular, is significant; however, improvements are possible. The use of coalbed methane as
a substitute for coal offers several types of opportunities for reducing the impacts associated
with coal production and consumption. Methane, like conventional natural gas, is a remarkably
clean burning fuel. It emits virtually no sulfur or ash, and only about 32 percent of the nitrogen
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oxides, 35 percent of the carbon dioxide, and 43 percent of the volatile compounds emitted by
coal burning (Oil and Gas Journal, 1991; EPA, 1986). Using coalbed methane to displace coal
consumption in Russia's coal mining regions could thus be a cost-effective way to help reduce
air quality problems. Examples of coalbed methane use options that would benefit the
environment include:
Heating mine facilities. Currently, Kuzbass mines use coal fired boilers to produce steam
heat for drying coal, heating mine facilities, and heating ventilation air. The Ministry of Fuel
and Energy (1992) estimated that one Kuzbass coal production association burns more
than 500,000 tons of unwashed bituminous coal in its boilers each year. These boilers
have no air pollution abatement systems installed. They emit an estimated 5,000 tons of
particulate matter and nearly 500 tons of sulfur to the atmosphere annually. This exceeds
the norms established by environmental protection authorities by more than ten times.
Elimination of the particulates and sulfur from the effluents of those boilers could
significantly improve the local environment. Boilers at the majority of coal mines in the
basin are capable of conversion to gas use, making use of coal mine methane an attractive
option.
Power generation at mine facilities. Most Kuzbass mines purchase electricity from the
power grid, most of which is generated from low-quality coal. Use of coalbed methane to
generate electricity on-site may be a more economical option for these mines. Boilers, gas
turbines, and internal combustion engines can use coalbed methane to generate electricity.
A typical Kuzbass mine consumes approximately 73 GWh of electricity per year, the
energy equivalent of about 8 million cubic meters of methane. Use of coalbed methane
would benefit regional air quality by reducing demand for coal-generated electricity.
Using coalbed methane to fuel mine water desalination plants. According to the Ministry
of Fuel and Energy (1992), the Russian government considers the discharge of polluted
mine water in the Kuzbass a particularly acute problem. While some water from mines can
be used for productive purposes, much of it requires desalination before it is pure enough
to discharge.
The coal industry plans to install new, effective water purification equipment, but will need
to keep the costs of operating this equipment as low as possible. Desalination facilities can
use coalbed methane directly as a heat source for evaporation and concentration of salts,
and indirectly as an energy source to fuel other phases of the desalination process.
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CHAPTER 2. COAL AND THE ENERGY SECTORS OF
RUSSIA AND THE KUZBASS
In order to assess the opportunities for increasing coalbed methane consumption and
production in the Kuzbass region, it is useful to examine coal production and consumption in
Russia as a whole, as well as within the region. In the short to medium-term, coal is likely to
remain a strategically important resource for Russia, for reasons described below. Russia
cannot afford to ignore its coal mining industry, and is placing industry restructuring and
modernization of production methods among its top priorities for the coming years.
2.1 ENERGY TRENDS IN RUSSIA AND IMPLICATIONS FOR THE KUZBASS
As in other segments of the Russian energy
sector, production in the coal industry has
significantly declined since the late 1980's (Figure
1-2). Hard coal production fell from 274 million
tons in 1988 to 172 million tons in 1994, a
decrease of 37 percent (PlanEcon, 1994a; IEA,
1995b). The Kuzbass accounts for about one-third
of the hard coal mined in Russia. The basin
produced about 58 million tons from its
underground hard coal mines in 1994, down from
64 million tons in 1993.
This decline has been caused, in part, by factors such as increasingly difficult mining
conditions, equipment shortages resulting from the breakup of the former Soviet Union,
increasing labor costs, and organizational and managerial problems stemming from the
changing political and economic system, as discussed previously.
Consumption of hard coal has also fallen, though less dramatically. In 1993, Russia consumed
220 million tons of hard coal. Hard coal accounts for approximately 15 percent of Russia's total
primary energy consumption, making it the country's third most utilized energy source, behind
natural gas (46 percent) and oil (27 percent) (USDOE EIA, 1994). Within the Kuzbass,
however, coal is the predominant fuel, comprising a much higher percentage of the region's
primary energy mix.
In the long run, Russia is expected to pursue a national energy strategy that relies heavily
upon developing its natural gas industry, and less upon its coal industry (Oil and Gas Journal,
1992). Consumption of natural gas in Russia has increased 75 percent in the last decade
(PlanEcon, 1994b). In addition, it is cheaper to produce than coal on an energy-equivalent
basis (PlanEcon, 1992). Natural gas is also a cleaner burning fuel, which may become an
increasingly significant factor in national energy planning if Russia succeeds in strengthening
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1985 1987 1989 1991 1993
10
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its national environmental protection program. Russia has long been the world's leading
exporter of natural gas, exporting 117.4 million cubic meters in 1995 (PlanEcon, 1996).
In the short to medium-term, however, coal is likely to represent a strategically important
resource for Russia for several reasons:
Coal can be used to meet domestic energy needs as increasing shares of oil and gas
produced are exported for hard-currency earnings.
A substantial share of electricity plants, district heating plants, and other facilities are
currently equipped with coal-fired technology.
The coal industry employs a large number of people who live in remote areas, many of
whom have few alternative employment opportunities. Even if reducing coal
consumption and production is adopted as a national objective, this process is likely to
occur gradually to prevent massive displacement of mine workers.
Stabilization of the nuclear industry, which will halt plans for expansion of some nuclear
facilities and/or may result in closure of others, will contribute to the domestic energy
shortage.
There is little doubt that the Kuzbass coal industry, given the global significance of its reserves,
will continue to be of major national strategic significance (PIER, 1993). The Kuzbass
produces 65 percent of all coal (both hard and brown) used by Russia's power industry, and 75
percent of all of Russia's coke annually (Interfax, 1995). The region has been developed to
meet Russia's energy and industrial needs, however, with little attention having been paid to
an effective regional economy. Limited opportunities for employment outside the declining coal
and primary manufacturing industries exist.
A number of initiatives are underway to develop the region. In February 1993, the Kemerovo
Regional Administration prepared a draft decree for Boris Yeltsin requesting a 203 billion ruble
aid package for the region's coal enterprises. In addition, the decree calls for local authority
over mineral concession rights and profits for natural resource use; and for a government
guarantee of a $US 50 million credit from an Italian bank to buy food processing equipment in
exchange for earnings from aluminum and coal exports (Interfax, 1993a).
The Russian Supreme Council has designated the Kuzbass region a "free economic zone"
(Box 1) designed to stimulate foreign investment. The government has also decided to provide
economic incentives to help mitigate the severe environmental problems in the region. While
these types of initiatives are encouraging, a major policy shift that will help the region move
away from its dependence on federal subsidies is necessary (PIER, 1993).
11
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One impact of restructuring of the Kuzbass coal industry is an overall reduction in the number
of mineworkers. Mining leaders in the Kuzbass are well-organized, and are influential in
national politics, given their proven ability to sustain large-scale strikes affecting national
energy supplies. During recent years, numerous Russian leaders and government officials
have expressed an interest in maintaining stability and employment in the Kuzbass. According
to the Kemerovo representative of the Ministry of Fuel and Power, there are approximately 400,000
people employed in mining and allied industries in the region, and many more are employed in
enterprises indirectly linked to the coal mining industry.
Box 1: Free Economic Zones
The government has approved the development of free economic zones (FEZs) in Russia and a
number of incentives exist to encourage foreign investment. FEZs will receive top priority for
privatization. Incentives associated with investing in FEZs vary according to the FEZ, but, in general,
the following types of incentives apply to the foreign investor, depending on the nature of the venture
(Price Waterhouse, 1994).
Goods imported into and re-exported from FEZs are exempt from customs duty.
Compulsory sales of hard-currency earnings are lower than elsewhere in Russia.
Tax rates for foreign investors and enterprises for foreign investors are up to 50 percent lower than
those existing elsewhere in Russia.
Tax holidays may also be applied.
Tax rates for using land an natural resources may be lower than in other parts of Russia.
Goods produced in a FEZ are exempted from licenses and quotas when exported within certain
limits.
Clearly, any means of making coal mining more profitable in the Kuzbass should provide more
employment stability in the region. Increased coalbed methane recovery and use could play a
role in this endeavor, benefiting the Kuzbass economy and reducing the need for subsidies
from the overburdened Russian government.
2.2 THE ENERGY NEEDS OF THE KUZBASS REGION
The Kuzbass is the second largest producing hard coal basin in the CIS, and the largest in
Russia. It contains an estimated 637 billion tons of coal, of which 548 billion tons are balance
resources. There are 76 underground and 20 surface mines in the region. Coal produced by
Kuzbass mines is high-quality, bituminous coal. Over 70 percent of the region's coal is sent to
other parts of the country, or exported for hard currency (Shakmatov, 1993).
Coal dominates the fuel mix of the Kuzbass region. Despite the large production of high-quality
coal in the Kuzbass, however, some parts of the region actually suffer energy shortages
(Yevtouchenko, 1993). As mentioned above, most of the coal produced from Kuzbass mines is
exported outside the region, while low-quality coal and coke oven gas are used locally. Natural
gas comprises only about 17 percent of the region's fuel mix. The Kuzbass region consumes
about 5.5 million cubic meters of natural gas annually, transported from the Tyumen gas fields
approximately 400 km to the northwest. According to a member of the Skochinsky Mining
Institute, the amount of natural gas supplied to the Kuzbass is only one-third of the amount
requested by the regional government per year.
12
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Table 1-1 shows energy balance data for the Kemerovo Oblast2, which effectively comprises
the Kuzbass region. These data are reported using categories that refer to the types of fuel
used by various sectors of the regional economy. The four broad categories of fuels listed in
Table 1-1 are:
Natural fuels such, as oil and natural gas (includes LNG and CNG), are those fuels that
are extracted in more or less natural form and used directly without conversion to other
fuel types or forms of energy;
Processed fuel products, such as methanol and syngas, are those forms of energy
fuels which have been converted from natural fuels, such as natural gas, and usually
have higher heating values;
Byproduct fuel and energy from industrial processing, such as coke-oven gas or blast
furnace gas;
Converted energy-electricity, steam and hot water that is produced from the use of the
fuels listed above.
As might be expected, the industrial sector is the largest consumer of fuel in the oblast, accounting
for more than 72 percent of total energy consumption. Residential consumers and community
facilities consumers are responsible for nearly 17 percent of the oblast's energy consumption.
Transportation and agriculture use the remaining 11 percent of the region's fuel.
The majority of the coal that is consumed within the oblast is used for heating in residences and
community facilities. This sector consumes more than 77 percent of the coal produced from the
mines located within the oblast, but only 0.4 percent of the natural gas. The heavy use of coal by this
sector contributes significantly to air pollution in the region, a situation that could be mitigated by
substituting methane for some of the coal.
As shown in Table 1-2, the metal industry (producing steel and other metals) consumes more than
60 percent of all energy used by the industrial sector. The majority of the fuel consumed by this
industry is processed fuel and byproducts, including coke, coke oven gas, and blast furnace gas. The
metal industry is also the largest consumer of natural gas, consuming 69 percent of the gas imported
into the region. In addition, it is the largest consumer of electricity. Some of the oblast's power is
generated by coal, while much of it is produced by hydroelectric plants.
The coal industry is the next largest consumer of energy (115 PJ, or 14 percent). In addition to
consuming large amounts of diesel fuel, this industry uses more unprocessed coal than any other; 43
percent of the unprocessed coal used by the industrial sector is consumed by the coal industry itself.
The industry consumes no natural gas.
2 An oblast is an administrative unit organized on geographic or industrial lines. Oblasts are responsible
for administrative matters within their boundaries, such as collecting taxes, setting local taxes, and
administering legal affairs. The Kemerovo Oblast, one of 46 Russian oblasts, is 95,500 km2 and has a
population of about 3.2 million.
13
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TABLE 1-1. FUEL AND ENERGY CONSUMPTION BY SECTOR IN THE KEMEROVO OBLAST
Type of Fuel
Coal
Wood
Natural Gas
Underground Gasified
Coal
Total Natural Fuels
Metallurgical Coke
Dry Breeze Coke
Fuel Oil
Diesel Fuel
Gasoline
Coke Gas
Other
Total Processed Fuels
Blast Furnace
Byproducts
Other
Total Byproducts
Electrical Energy
Steam and Hot Water
Total Converted Energy
GRAND TOTAL
Industrial
Petajoule
s
19.6
0.4
78.2
0.2
98.3
150.3
22.4
19.2
8.1
1.0
42.8
8.9
252.6
49.1
0.4
49.5
266.8
175.5
442.2
842.7
%
18.8
15.8
99.5
83.3
52.9
100.0
100.0
97.7
19.3
3.9
99.8
59.8
79.5
100.0
100.0
100.0
81.1
61.6
72.0
72.2
Community and
Residential
Petajoule
s
81.0
2.0
0.3
0.0
83.4
0.0
0.0
0.2
0.4
3.5
0.0
0.5
4.6
0.0
0.0
0.0
31.9
74.2
106.2
194.1
%
77.4
81.7
0.4
16.7
44.9
0.0
0.0
1.1
1.0
13.6
0.0
3.4
1.5
0.0
0.0
0.0
9.7
26.0
17.3
16.6
Transportation
Petajoule
s
0.1
0.0
0.1
0.0
0.2
0.0
0.0
0.0
21.0
19.1
0.0
5.2
45.3
0.0
0.0
0.0
18.6
5.1
23.7
69.2
%
0.1
0.0
0.1
0.0
0.1
0.0
0.0
0.2
50.1
74.2
0.0
35.2
14.3
0.0
0.0
0.0
5.7
1.8
3.9
5.9
Agriculture,
Construction
and Other
Petajoule
s
3.8
0.1
0.0
0.0
3.9
0.0
0.0
0.2
12.4
2.1
0.1
0.2
15.1
0.0
0.0
0.0
11.6
30.2
41.8
60.8
%
3.7
2.5
0.0
0.0
2.1
0.0
0.0
1.1
29.6
8.3
0.2
1.6
4.7
0.0
0.0
0.0
3.5
10.6
6.8
5.2
Total
Petajoules
104.6
2.4
78.6
0.2
185.8
150.3
22.4
19.7
41.8
25.7
42.9
14.8
317.6
49.1
0.4
49.5
328.9
285.0
613.9
1166.8
%
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Source: Energy Research Institute of Russia. The year for which these data are valid is unknown, but is probably either
1991 or 1992.
14
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TABLE 1-2. FUEL AND ENERGY CONSUMPTION BY THE INDUSTRIAL SECTOR, KEMEROVO OBLAST
(IN PETAJOULES AND PERCENT)
Type of Fuel
Coal
Wood
Natural Gas
Underground Gasified
Coal
Total Natural Fuels
Metallurgical Coke
Dry Breeze Coke
Fuel Oil
Diesel Fuel
Gasoline
Coke Gas
Other
Total Processed Fuels
Blast Furnace
Byproducts
Other
Total Byproducts
Electrical Energy
Steam & Hot Water
Total Converted Energy
TOTAL
Steel and Other
Metals
PJ
4.9
0.1
53.9
0.0
58.9
148.3
22.4
13.3
1.2
0.4
42.6
9.0
237.2
49.1
0.0
49.1
122.4
42.1
164.5
509.7
%
24.8
25.7
69.0
0.0
59.9
99.2
99.2
78.3
14.8
23.2
99.4
81.1
93.7
100.0
0.0
99.2
46.0
24.0
37.2
60.5
Coal
PJ
8.5
0.0
0.0
0.0
8.5
0.0
0.0
0.3
5.5
0.3
0.1
0.0
6.1
0.0
0.0
0.0
66.6
34.1
100.7
115.3
%
43.3
0.0
0.0
0.0
8.6
0.0
0.0
1.6
65.4
16.8
0.1
0.0
2.4
0.0
0.0
0.0
25.0
19.4
22.8
13.7
Chemical
Industry
PJ
0.0
0.0
7.4
0.0
7.4
0.0
0.0
0.9
0.0
0.4
0.2
0.0
1.5
0.0
0.4
0.4
20.1
46.9
67.0
76.3
%
0.0
0.0
9.5
0.0
7.6
0.0
0.0
5.2
0.0
23.2
0.4
0.0
0.6
0.0
100.0
0.8
7.6
26.7
15.2
9.1
Building
Materials
PJ
5.2
0.2
16.0
0.0
21.4
0.5
0.2
2.1
0.1
0.0
0.0
0.0
2.9
0.0
0.0
0.0
8.1
12.4
20.4
44.7
%
26.3
65.7
20.5
0.0
21.8
0.3
0.7
12.6
1.4
0.0
0.0
0.0
1.1
0.0
0.0
0.0
3.0
7.1
4.6
5.3
Machir
Equi
PJ
0.2
0.0
0.7
0.0
0.9
0.7
0.0
0.3
0.5
0.4
0.0
0.0
1.9
0.0
0.0
0.0
14.2
23.9
38.1
40.9
lery and
pment
%
1.1
0.0
0.9
0.0
1.0
0.4
0.1
1.7
6.4
18.4
0.0
0.0
0.7
0.0
0.0
0.0
5.3
13.6
8.6
4.9
Other
PJ
0.9
0.0
0.0
0.2
1.1
0.0
0.0
0.1
1.0
0.4
0.0
2.1
3.6
0.0
0.0
0.0
34.8
16.1
50.9
55.7
%
4.6
8.6
0.0
100.0
1.1
0.0
0.0
0.7
12.0
18.4
0.1
18.9
1.4
0.0
0.0
0.0
13.1
9.2
11.5
6.6
Total
PJ
19.7
0.4
78.2
0.2
98.3
149.4
22.6
17.0
8.3
1.9
42.8
11.1
253.2
49.1
0.4
49.5
266.2
175.5
441.7
842.7
%
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Source: Energy Research Institute of Russia. The year for which these data are valid was is unknown, but is probably either 1991 or 1992.
15
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2.3 THE ROLE OF COALBED METHANE IN THE KUZBASS
2.3.1 Potential Contribution of Coalbed Methane to the Mining Economy
Use of coalbed methane can help the Kuzbass meet its goals of improving mine profitability.
Under the past system of controlled coal prices in Russia, it has been difficult for an individual
mine to enjoy increased profitability from improved mining efficiency. The traditional system of
subsidizing coal production provided no incentive to the mine to decrease mining costs.
However, as has been discussed previously, subsidies are being decreased or eliminated as
part of the mine restructuring program. Mines are thus being compelled to increase efficiency
in order to increase profitability.
One means of lowering mining costs and directly increasing benefits to the mine is by the
development of the coalbed methane resource that is presently being wasted by mines in the
region. Expanded methane recovery and use could have significant economic benefits for the
coal mines, including: lower investment and operating costs for ventilation; reduced "down-
time" due to methane concentrations above the working limit; higher safety margin; and higher
and more stable concentrations of methane in recovered gas.
The experience at Jim Walter Resources mines in Alabama, US has shown a direct
relationship between the decrease in the concentration of methane in mine workings via
economic recovery of the gas, and mining efficiency (Dixon, 1990). In turn, increased mining
efficiency lowers the cost of production. A comparative analysis of three hypothetical
ventilation and degasification systems conducted by Kim and Mutmansky (1990) further
supports these results; the study concludes that the greatest economic benefits resulting from
methane drainage are increased coal production and lower coal production costs.
Use of the methane resource could bring additional revenues to the individual mines. For
example, using coalbed methane to displace hard coal in mine boilers would free up additional
coal for sale. An EPA analysis of the potential for cofiring methane in boilers at the Kirov Mine
estimates if methane were cofired in three of the mine's boilers, it would save 11,100 tons of
coal annually, which could be sold for $US 214,000. Another option may be to sell recovered
methane to nearby industries as a substitute for coal, coke oven gas, or conventional natural
gas for a variety of uses.
One way to illustrate the potentially strong market for coalbed methane in the Kuzbass is to
consider the energy content of the gas. The 1 billion cubic meters of methane emitted by
Kuzbass mines annually is equivalent to about 41 PJ of energy. Referring to Table 1-2, this is
equal to the energy content of nearly all of the steam and hot water consumed by the coal
industry annually; or, about the same amount of energy that is consumed in the form of coke
oven gas by the metallurgical industry; or, more than half the total natural gas consumed in the
oblast each year, all of which must be imported from outside the region.
Some Kuzbass mines are simply so unprofitable that no amount of coalbed methane recovery
and use will offset losses enough to make the coal mining operation viable. These mines will
be closed, and without alternative sources of energy and employment, the economic and
social costs of these closures may impose unacceptable burdens on the residents of mining
communities. Coalbed methane can be recovered from inactive mines, however, as well as
from virgin fields that lie outside the boundaries of mining areas. Therefore, development of
16
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this resource independent of active mining operations could help create jobs in the region,
while providing an alternate source of fuel.
2.3.2 Encouraging Development of Coalbed Methane
The Russian government and coal industry recognize the potential benefits of increased
coalbed methane recovery and use and are interested in increased development of this
resource. RosUgol's Department of Perspective Development and Technical Policy oversees
coalbed methane research projects. Under the direction of this department, research is
currently underway at the Skochinsky Mining Institute near Moscow, and at the Moscow Mining
Institute.
EPA and Partners in Economic Reform (PIER) have established the Russian Coalbed
Methane Center in conjunction with the Russian Coal Institute's Siberian Branch, to provide
information to local coal mines about opportunities to expand methane recovery. The Center
serves as a point of contact for multilateral agencies and US companies seeking to develop
coalbed methane projects (the addresses of PIER and other useful government and industry
contacts are in Appendix B). It creates domestic industry networks and information exchange,
as well as serving as an information resource for Western companies exploring project
opportunities in Russia.
Russia views foreign capital investment as a critical element to restoring the productivity of its
energy industries. The government has been sorting out a number of issues (e.g., property
rights, regulations on sales/exports of output) affecting investment in this sector. The Russian
Law on Mineral Rights, enacted by the parliament in February 1992, helps clarify the basic
rules governing the ownership of mineral rights and the allocation of royalties earned from
licensing of such rights to commercial entities.
Existing Russian legislation that specifically mentions methane focuses on the negative
impacts of methane emissions, rather than the positive impacts of methane use. A decree
issued by the Russian Ministerial Council Decree in 19913 addresses discharge of methane
and other pollutants (such as NOX) to the atmosphere (Tailakov, 1995). This document does
not limit the allowable concentration of methane discharged to the atmosphere from an
environmental standpoint, but does state that the "rough safe level of effect" (RSLF) on human
health is 50 mg methane/m3 of air. Given the relatively low penalties for discharge of methane,
it appears that, in examining the environmental and economic benefits of using methane to
displace coal, the resulting avoidance of sulfur dioxide and NOX emissions is more compelling
than the avoidance of methane emissions alone.
It may be more effective to enact other types of measures or policies that will encourage
development of this unconventional fuel, as have other countries. Poland, for example, divided
its major coal-producing basin into coalbed methane licensing blocks and invited energy
companies to bid on these concessions. As a result, several firms, both domestic and foreign,
have initiated coalbed methane exploration programs in Poland. Poland is also attempting to
provide a sound, clear legal framework that will further attract private investment in energy
projects, including coalbed methane projects. Its Geological and Mining Law, passed in 1994,
designates coalbed methane as one of the so-called "basic minerals", thus clearly defining the
regulatory procedure for undertaking coalbed methane projects (Ronne, 1994). Poland's draft
3 This decree is titled "Specifications on Outbursts of Polluting Substances on the Natural Environment
and Acts About Their Application".
17
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Energy Law, currently awaiting passage, sets out the principles for the regulation of supply and
use of energy fuels. An important provision of the Energy Law allows natural gas producers
operating in Poland to have third party access to networks distributing electricity, gas, and
district heating. This should make it easier to distribute methane produced from coal seams.
Government-provided financial incentives are another means of encouraging coalbed methane
development. The Section 29 Unconventional Fuels Tax Credit stimulated tremendous growth
of the US coalbed methane industry throughout the 1980's, and was eliminated as soon as
coalbed methane became competitive with conventional natural gas. In China, coalbed
methane projects are eligible for low-interest government loans. China also exempts coalbed
methane projects from paying resource taxes, and reduces value-added taxes and income
taxes on coalbed methane production (Sun et al, 1996).
The individual requirements and opportunities faced by companies investing in Russia depend
on specific circumstances. However, it is possible to identify several general categories of
issues and obstacles that foreign companies investing in the Russian energy sector should
consider:
Ill-defined tax rate structure;4
Informational barriers;
Russian legal and financial environment;
Environmental conditions;
Deteriorating industry structures; and,
Potential for corruption.
The government's investment policy encourages any form of investment that will provide
significant technical re-equipping, modernization of industry, improvements in production, and
training of labor. Because coalbed methane projects would involve both technology transfer
and capital investment, they should be especially welcome. While investment in the fuel and
energy sector is heavily controlled at present, the mineral resource and energy industries are
considered to be relatively good investment prospects (Price Waterhouse, 1994). The
Kuzbass is a free economic zone, moreover, offering a number of incentives to encourage
foreign investment.
At present, it appears that the greatest obstacles to foreign investment in Kuzbass methane
projects are 1) lack of markets that can pay for methane with hard currency, and 2) lack of
support by Gazprom, the state-owned gas company. Foreign energy companies are starting to
recognize the vast potential of the Kuzbass methane resource, however, and given Russia's
desire for foreign investment, it is likely that the government will begin to address these
barriers to its development.
Different estimates show that the coalbed methane resources associated with balance coal
reserves in all mines of the Kuzbass are substantial, ranging from 184 to 344 billion cubic
meters. These estimates were established through two different methods of calculating
methane resources. These methods are discussed briefly below; the EPA (1994) report on
coalbed methane in Russia and Ukraine contains a more in-depth discussion.
4 For a discussion of taxes and legal requirements applicable to energy enterprises, see Appendix A.
18
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CHAPTER 3. COALBED METHANE RESOURCES OF THE KUZBASS
Historically, Russian miners, like miners everywhere, have known that the control of methane
liberation into the mine workings is necessary for safety reasons; however, the mining industry
is now recognizing that coalbed methane is a valuable resource that may potentially be
recovered profitably. The current restructuring of the coal mining industry in Russia offers a
unique opportunity to consider coalbed methane as an important component in the energy
balance of the Kemerovo Oblast.
In order to evaluate the potential to develop coalbed methane in the Kuzbass, it is necessary
to estimate the magnitude of the resource. The estimates in this study are based on an
evaluation of coal resources, including methane content and other characteristics of the coal
that can affect the production of coalbed methane. This chapter provides an assessment of
coal resources in the Kuzbass, and estimates its coalbed methane resources.
3.1 KEY CHARACTERISTICS OF KUZBASS COAL PRODUCTION ASSOCIATIONS
Table 1-3 summarizes key characteristics of Kuzbass hard coal production associations. In
1994, seven CPAs administered 75 active underground mines; these CPAs, together with the
independent Raspadskaya mine, produced more than 58 million tons of hard coal. Production
is forecast to decline by as much as 50 percent by 1997, as CPAs phase out extraction from
unprofitable seams and mines.
According to the Skochinsky Mining Institute (1993), the Kuzbass contains about 16 billion tons
of hard coal reserves. As shown in Table 1-3, active mines contain nearly 10 billion tons of
this coal, of which 5.7 billion tons are classified as industrial reserves. Industrial reserves
comprise that portion of the balance reserves designated for extraction according to mine
plans (for a more detailed explanation of the Russian mineral resource classification system,
see Appendix C).
In 1994, Kuzbass mines liberated more than one billion cubic meters of methane (Table 1-3).
Of this total, ventilation systems emitted 860 million cubic meters, and methane recovery
systems emitted 196 million cubic meters following collection. The recovered methane is
predominantly of medium quality, but none of it is used.
3.2 COALBED METHANE RESOURCE ESTIMATES
To fully evaluate the development potential of a coalbed methane project, reliable estimates of
coalbed methane resources are necessary. Accurate estimates of methane resources use
methods based on detailed information on the coal resources generated by a carefully
designed coalbed methane exploration program. Because no large-scale coalbed methane
exploration program has been completed in the Kuzbass, less accurate or rigorous methods
help give a reasonable estimate.
19
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TABLE 1-3. KEY CHARACTERISTICS OF KUZBASS COAL
PRODUCTION ASSOCIATIONS AND RASPADSKAYA MINE
COAL PRODUCTION
ASSOCIATION
KUZNETSKUGOL
LENINSKUGOL
PROKOPIEVSKUGOL
BELOVOUGOL
SEVEROKUZBASSUGOL
KISELEVSKUGOL
OBLKEMEROVOUGOL3
RASPADSKAYA MINE
TOTAL
UNDERGROUND
COAL PRODUCTION
(Data from 1994)
NO.
OF
ACTIVE
MINES
18
9
13
6
12
9
8
1
76
HARD
COAL
MINED
(106TONS)
17.0
11.0
7.3
4.5
5.0
4.1
4.9
4.4
58.3
BALANCE HARD
COAL RESERVES
(106TONS)
(Data from 1991)
ACTIVE
MINES
3,532
1,558
1,498
778
1,016
1,572
n/a
n/a
>9,955
INDUSTRIAL
RESERVES
2,327
912
725
593
481
683
n/a
n/a
>5,720
METHANE LIBERATION
(106m3)
(Data from 1994)
DRAINED
43.6
83.8
10.5
52.2
2.7
1.5
n/a
1.4
195.7
VENTED
423.4
130.0
104.1
61.4
67.1
23.8
n/a
50.2
>860.0
TOTAL
EMITTED
467.0
213.8
114.6
113.6
69.8
25.3
n/a
51.6
>1, 055.7
Shaded rows indicate coal production associations profiled in Part II of this report
SOURCE: SKOCHINSKY INSTITUTE, 1993; INTERFAX, 1995; PIER, 1995
Average Methane Content Method
Under this method, resource estimates were prepared using methane content data published
by the Skochinsky Mining Institute (1991) and developed for the coal resources that were
scheduled for mining through year 2000. The Skochinsky reports contain measured gas
contents and coal reserves of each seam slated for mining. Using this data, an average gas
content, weighted on coal reserves, was developed for each CPA and profiled mine. Methane
content values were then multiplied by the balance coal reserves of each CPA (or mine), to
estimate coalbed methane resources.
This method can yield reasonably accurate resource estimates because it relies on measured
methane contents. Uncertainty associated with these estimates and the data on which they
are based is related to two factors:
First, methane content data were only reported by the Skochinsky Mining Institute for those
coal seams that are scheduled to be mined through the year 2000. These data may not
include appropriate estimates of methane occurring in other coal seams, or in the same
seams in areas lying outside the boundaries of the study.
Oblkemerovougol differs from the other six coal production associations in that 1) it is independent of
RosUgol (the Russian Coal Company) and 2) it has no defined boundary; its nine mines (one of which is
inactive) and eight open pits are scattered throughout the Kuzbass. During Soviet times,
Oblkemerovougol belonged to the Ministry of Fuel Industry, whereas the other six coal production
associations belonged to the Ministry of Coal Industry (Tailakov, 1996). Coal seams in the
Oblkemerovougol mines reportedly contain methane, but methane liberation data were unavailable.
20
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Second, the techniques used for measurement of lost gas (unmeasured gas that desorbs
during the time that elapses from the moment the coal sample is cut from the seam, until
the moment it is sequestered in an airtight container) are unknown. As a result, it is not
clear how accurate the reported measured gas content data are, or how they compare to
methodologies for determining gas content developed in the U.S.
Specific Emissions Method
The second method for estimating coalbed methane resources is used by the Skochinsky
Mining Institute. It relies on the specific methane emissions associated with coal mining, which
refers to the volume of methane liberated per unit weight of coal mined during a given time
period (in this case, one year), commonly expressed in cubic meters per ton. Specific
emissions can be calculated for any CPA or mine by dividing total methane emissions by coal
production. Resource estimates are developed by multiplying coal resources by specific
emissions.
The specific emissions method can be useful for the most preliminary of estimates. However, it
can lead to inflated resource estimates in that this method can also potentially overestimate
resources when adjacent coal seams included in the coal resource estimate are the source of
some of the methane that is emitted into the mine workings.
Overall Resource Estimates
Table 1-4 summarizes the methane resource estimates for each coal production association in
the Kuzbass. The low end of the ranges was calculated using the "Average Methane Content"
method6. The average methane contents in Table 1-4 were multiplied by the various types of
coal reserves (total, active mines, and industrial reserves) to estimate methane resources. The
high end of the ranges was calculated using the "Specific Emissions" method. To prepare
these estimates, the specific emissions associated with each CPA were multiplied by its coal
reserves.
To put these resource estimates into perspective, 184 to 344 billion cubic meters of methane is
43 to 81 percent of the annual consumption of conventional natural gas in Russia. It is the
approximate equivalent of 6,200 to 11,500 PJ of energy, which, based on the data in Tables 1-
1 and 1-2, is equivalent to 79 to 146 times the annual natural gas consumption of the
Kemerovo Oblast, and 22 to 40 times the annual steam and hot water consumption of the
Oblast. It could therefore help meet the energy needs of the region for years to come.
6 The only exception is Kiselevskugol, whose average methane content (11.1 m3/ton) is higher than its
specific emissions.
21
-------
TABLE 1 -4. ESTIMATED METHANE RESOURCES ASSOCIATED WITH
KUZBASS COAL PRODUCTION ASSOCIATIONS
COAL PRODUCTION
ASSOCIATION
KUZNETSKUGOL
LENINSKUGOL
PROKOPEVSKIDROUGOL
BELOVOUGOL
SEVEROKUZBASSUGOL
KISELEVSKUGOL
TOTAL
AVERAGE
METHANE
CONTENT
(m3/T)
(1991 data)
13.3
9.4
11.7
13.1
12.4
11.1
SPECIFIC
EMISSIONS
(m3/T)
(1994 data)
27.5
19.5
15.7
24.9
13.9
6.1
ESTIMATED METHANE RESOURCES
(109 CUBIC METERS) ASSOCIATED WITH
BALANCE RESERVES OF COAL IN:
ALL MINES
93- 192
31 - 64
19-26
10-19
20-23
11-20
184-344
ACTIVE
MINES
47-97
15-30
18-23
10-19
12- 14
10-18
112-201
INDUSTRIAL
RESERVES
31 -64
9-18
9- 11
8-15
6-7
4-8
67-123
Shaded rows represent coal production associations profiled in Part II of this report
SOURCE: SKOCHINSKY INSTITUTE, 1993 AND 1991; PIER, 1995; VOSTNII, 1995
3.3 METHANE RECOVERY AND USE
Coalbed methane use would clearly benefit the Kuzbass by helping it to meet increasing
energy needs with a less polluting, local energy source. Some fuels that coalbed methane
could replace are brown coal, low-quality hard coal, coke oven gas, and natural gas imported
into the region. Coalbed methane extracted during mining will be most valuable when used
locally in situations where high compression, enrichment, or long distance transmission is not
required. Methane could thus be used to produce heat and power for use by mine facilities,
local industries, and nearby residences. Among the most attractive options for methane use in
the Kuzbass are:
Heating mine facilities. Currently, Kuzbass mines use coal-fired boilers to produce
steam heat for such purposes as drying coal, heating mine facilities, and heating
ventilation air.7 In some cases, mine boilers also supply thermal energy to the
surrounding communities. Typically, low-quality, highly polluting coal is used for these
purposes; higher-quality coal is reserved for sale. Coalbed methane could be directly
fired for use in coal drying facilities. For heating purposes, boilers could be retrofitted to
burn methane intermittently with hard coal, or to co-fire methane with coal. Should
methane become unavailable for any reason, the boilers would maintain their ability to
operate entirely on coal. A typical Kuzbass mine may consume 50,000 to 700,000 tons
of coal per year in its boilers. This is the energy equivalent of approximately 44 to 526
million cubic meters of methane. The amount of methane drained by each mine profiled
in Chapter 3 of this report ranges from 5 to 38 million cubic meters annually, enough to
significantly offset the amount of coal presently being consumed.
Use in furnaces in the metallurgical industry. Another strong candidate for methane
use is the metallurgical industry. The city of Novokuznetsk, in the southern portion of
the Kuzbass, contains numerous gassy mines. It is one of the biggest centers of
metallurgy in Russia, moreover, producing thousands of tons of steel, cast iron,
Because of the extreme Siberian winters, much more energy is required for mine heating in this region
than in temperate climates.
22
-------
aluminum and other metals annually. As shown in Table 3, the metallurgical industry
consumes about 54 PJ of natural gas annually, which is equivalent to about 1.4 billion
cubic meters of methane.
Power generation at mine facilities. Most Kuzbass mines purchase electricity from the
power grid. Use of coalbed methane to generate electricity on-site may be a more
economical option for these mines. Boilers, gas turbines, and internal combustion
engines can use coalbed methane to generate electricity. One potentially attractive
use of coalbed methane is powering mine water desalination plants, which require large
amounts of both electrical and thermal energy for operation. A typical Kuzbass mine
consumes approximately 73 GWh of electricity per year, the energy equivalent of about
8 million cubic meters of methane.
A trend toward better enforcement of environmental legislation is developing in Russia, and
mines and other industries that are able to substitute gas for coal will fare better than those
who cannot. The Russia Coalbed Methane Center has developed a database containing
information on boiler stations in four Kuzbass cities: Belovo (141 boiler stations), Kemerovo
(99 boiler stations), Kiselevsk (67 boiler stations), and Mezhdurechensk (64 boiler stations). It
contains data on the type, thermal capacity, and coal consumption of each station. The Center
is using this database to determine the quantity of various pollutants released to the
atmosphere as a result of coal combustion by these boilers; and, to ascertain technical
requirements for converting the boilers to gas use (Tailakov, 1995).
3.4 COALBED METHANE PROJECT OPPORTUNITIES
Given the economic and political issues described in this report, it is likely that coalbed
methane will be developed in a phased fashion. The short, medium, and long-term project
types listed in Table 1-5 are meant to provide conceptual guidelines for development. In
addition, the table lists types of assistance that are perceived to be needed, and suggested
sources for funding.
There are three general categories of projects that a mine can undertake: projects to improve
the quality of methane recovered, projects to increase the quantity of methane recovered, and
projects to increase methane use. Some of the best opportunities for improving methane
quality are related to reducing the amount of air that is drawn into the underground piping
system. Relatively simple measures such as properly installing, sealing, and maintaining the
underground piping network will minimize leaks in the system. Such projects require relatively
little capital.
Projects to increase the quantity of methane recovered require coordinating mining activities
with gas production activities to optimize methane production concomitant with coal extraction.
For instance, drilling vertical pre-drainage wells requires coordination between drilling and
mining departments to ensure that methane is drained well in advance of mining. Each mining
property confronts the planner with a set of site-specific conditions that may require unique
solutions to the problem of optimizing gas production without reducing the effectiveness of the
overall mining plan.
23
-------
TABLE 1-5. SHORT, MEDIUM, AND LONG-TERM COALBED METHANE RESOURCE
DEVELOPMENT PROJECT TYPES FOR THE KEMEROVO OBLAST
PROJECT TYPE
ANTICIPATED
RESULTS/BENEFITS
ASSISTANCE TYPE
FUNDING
SOURCE
SHORT-TERM (One to Two Years)
Enhanced Recovery*
Increased use:
Upgrading existing
systems
Supplying immediate
needs (information,
repairs, etc.)
Increased volume and
concentration of
methane / Increased
safety
Use existing delivered
methane at current
concentrations and
volume / Safety
benefits; environmental
benefits; enhanced
mine productivity and
profitability
Technical assistance,
followed by
development projects
Technical assistance,
followed by
development projects
USAID/PIER;
Local government;
Russian
Investment Bank
USAID/PIER;
Local government;
Russian
Investment Bank
MEDIUM-TERM (Two to Five Years)
Introduction of Recovery
Systems or other New
Technology
Construction of a
gathering, transmission,
and local distribution
system
Improved production
and quality of
recovered methane /
Safety benefits;
enhanced mine
productivity and
profitability
Increased methane
supply to local industry;
switching to cleaner
fuels/ Enhanced mine
productivity and
profitability; local
economic
development;
environmental benefits
Development projects;
Technical assistance;
Technology transfer
Development projects;
Technical assistance;
Technology transfer
GEF; USAID; TDA;
IFC;
Local government
GEF; USAID;
TDA; IFC;
Local government
LONG-TERM (Five to Ten Years)
Conversion of one or
more industries to
coalbed methane use
Incorporation of
coalbed methane into
the energy balance of
the region;
development of
coalbed methane
independent of coal
mining / Economic
benefits to the region
Development projects;
Technical assistance;
Technology transfer
GEF; USAID; WB;
TDA; IFC;
Local, regional, and
national
government
* As discussed in the text, recovery can often be enhanced via relatively minor changes in methane
drainage operations that require little or no outside funding.
24
-------
Projects to increase methane use might include:
conversion of boilers located at the mines from coal-fired to gas-fired using coalbed
methane extracted from the mine;
mobile power generation facilities that can be connected to gob wells drilled behind
the advancing face, that supply energy to the mobile pumping stations and
ventilation booster stations;
implementation of pre-mine and gob well drainage systems that can be connected
to gathering and transmission systems thereby increasing the volume and quality of
gas that can be supplied to nearby and allied industries; and,
development of storage facilities to make optimal use of the resource drained
during the summer months.
All of these project opportunities will require technical and developmental assistance from
private enterprise and funding agencies.
25
-------
PART TWO: PROFILES OF SELECTED COAL
PRODUCTION ASSOCIATIONS
-------
COAL PRODUCTION ASSOCIATION AND MINE PROFILES USER'S GUIDE
FORMAT
This section profiles three Kuzbass coal production associations (Kuznetskugol, Belovougol, and
Leninskugol) and six affiliated mines, summarizing key features of their coal and coalbed methane
resources. Each CPA profile is followed by profiles of a selected mine or mines. Three appendices
follow the profiles. Appendix A discusses some of the steps that most companies must take to form a
joint venture in Russia. Appendix B lists Russian government and mining contacts, along with their
functions and addresses, which may be useful to the potential foreign investor. Appendix C explains
Russian terminology regarding resource classification, coal rank, and mining hazards. Please consult
Appendix C for information which, to avoid repetition, is not included in the individual mine profiles.
Below is a brief explanation of selected items that appear in this section.
MINE LOCATIONS AND STRATIGRAPHIC SECTION
Figure 2-1 shows the locations of the CPAs and profiled mines. Figure 2-2 is a general stratigraphic
section of the coal-bearing sequence of the Kuzbass.
MINING ECONOMICS
With the exception of the Kirov Mine, coal production costs were not available because most mines
consider this information confidential. Coal sales prices for individual mines are more readily available
than production costs, and are reported in the mine profiles.
Unless otherwise noted, exchange rates used in this report are (rubles equivalent to $US 1):
1991:1.8 1993:1,000 1994:2,320 1995:4,900
METHANE RESOURCE ESTIMATES
This report presents methane resources for each of the three profiled coal production associations and
six profiled mines. Estimates are presented as a range. In most cases, the lower ends of this range
were calculated using a weighted average methane content; the higher ends of the range were
calculated using specific emissions. Section 3.2 in Part 1 of this report details these estimation
methods.
SALINE WATER DISCHARGE
Data concerning the quality and quantity of water discharged as a result of normal mining operations
are also presented. The reason for providing these data is that water is typically produced when
methane drainage boreholes are drilled from the surface in advance of, or unrelated to, mining
operations. Since surface drainage of methane has never been performed in the Kuzbass, it is difficult
to predict the amount of water such operations will produce. Mine water discharge data, however,
provide an indication of the quality and quantity of water that methane boreholes may yield. This
information must be considered in planning coalbed methane recovery projects in advance of (or
outside of) mining, because saline water may need to be treated prior to disposal to avoid polluting
local water resources.
26
-------
BOUNDARY OF
27
-------
FIGURE
i 1 COAL LAYER
fa'VI CONdOMEfl
^iV-V'a SANDSTONE
r^i-rill SUTSTONE
t^^^l INTERSEDDB
SOURCE: HKADOROV,
2-2. GENERAL STRATIGRAPH1C SECTION OF COAL BEARING SEQUENCE
OF THE KUZNETSK COAL BASIN, RUSSIA
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JURASSIC
TRIASSIC
z
i
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i
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111
| CARBONI
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FORMATION
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.1
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NUMIEH OF
WOftKINa LAYEIU
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TOTAL THICKNEII
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28
28
-------
GEOTHERMAL GRADIENT
In each mine profile, data on the mine's geothermal gradient are provided. The reason for
noting the geothermal gradient (typically in ° C per 100 m) is that the higher the gradient, the
faster gas desorbs from the coal, requiring more ventilation.
CARBON DIOXIDE EQUIVALENTS
Investing in a coalbed methane recovery project may be a very cost-effective way to reduce
greenhouse gas emissions. A number of US entities are initiating projects overseas to reduce
greenhouse gas emissions as part of voluntary programs, such as the Department of Energy's
Climate Challenge program with electric utilities. These organizations report their reductions
under a program administered by the Department of Energy enacted under Section 1605(b) of
the Energy Policy Act of 1992.
Under the 1605(b) guidelines, methane emissions reductions should be reported in units of
methane. Methane is a very potent greenhouse gas, estimated to be between 19 and 43 times
more potent than carbon dioxide (CO2) on a weight basis over a 100-year period. In this report,
a factor of 22 was used because this is the U.S. Government's current view of the relative
potency of methane as compared to CO2. This factor implies that each ton of methane
emissions avoided is equivalent in impact to reducing CO2 emissions by 22 tons8.
For more information on the Section 1605(b) voluntary reporting program, contact the U.S.
Department of Energy, Voluntary Reporting of Greenhouse Gases Program, Energy Information
Administration, EI-81, 1000 Independence Avenue, SW, Washington, DC 20585.
' 52 billion cubic feet (Bcf) of methane is equal to 1.49 billion cubic meters and one million metric tons.
29
-------
KUZNETSKUGOL COAL PRODUCTION ASSOCIATION
The Kuznetskugol Coal Production Association (Figures 2-1 and 2-3) operates in and around
the city of Novokuznetsk, in the southern Kuzbass. The CPA was established in 1975,
originally as Yuzhkuzbassugol (Flegon, 1995). The region encompasses about 10,000 km2 of
mostly hilly terrain, and its total population is 850,000.
The CPA contains 18 active coal mines, all of which are underground; there is no open cast
mining at Kuznetskugol. The CPA also includes repair works, a computing center, and a
research section. There are 47 departments in all, located in the cities of Novokuznetsk (the
administrative headquarters), Mezhdurechensk and Osinniki.
The Abashevskaya and Baidaevskaya Mines are profiled in this report because each liberates
and drains relatively large volumes of methane.
COAL GEOLOGY, RESERVES, AND PRODUCTION
Geologic Setting. All coal deposits are complexly folded and faulted, manifest as en echelon
(overlapping) folds and thrust faults along the western and southern borders. The main coal-
bearing horizons occur in Permo-Carboniferous Balakhonsk and Kolchuginsk sediments
(Figure 2-2) which crop out along the southern and eastern borders of the association, which
are superimposed on the margin of the basin. Jurassic Tarbagansk sediments were deposited
in synclinal features in the center.
The mine's working seams include gently sloping, inclined and steep seams whose thickness
ranges from 0.8 m to 10 m. Average mining depth is 230-250 m.
Coal Reserves and Rank. Balance coal reserves of all mines in the association total 7.0 billion
tons; of this, active mines account for 3.5 billion tons. Coal reserves consist predominantly of
gas and fat coal (high volatile bituminous B) with some coking coal (high volatile bituminous A)
and lean-caking coal (medium volatile bituminous). There are also some Jurassic Tarbagansk
deposits containing brown coal. These deposits are not included in the reserve calculations,
however, as they would be mined by surface techniques.
Coal Production. In 1994, Kuznetskugol CPAs produced 17.0 million tons of coal (Interfax,
1995), down 6 percent from 18.0 million tons in 1993 (Table 2-1). The CPA contains 6 coal
preparation plants which process 7.6 million tons of coal annually.
30
-------
RIVER
31
-------
TABLE 2-1. SUMMARY DATA FOR ACTIVE MINES OF THE KUZNETSKUGOL
COAL PRODUCTION ASSOCIATION (1994)
MINE
ABASHEVSKAYA
ALARDA
BAIDAYEVSKAYA
BUNGURSKAYA
DIMITROV*
KAPITAL'NAYA
LENIN
NAGORNAYA
NOVOKUZNETSKAYA
POLOSUKHINSKAYA
SHEVYAKOVA *
SHUSHTALEPSKAYA
TOMSKAYA
USINSKAYA
VYSOKAYA
YESAUL'SKAYA
YUBILEINAYA
ZYRYANOVSKAYA
TOTAL
RASPADSKAYA MINE**
GRAND TOTAL
AVERAGE (WEIGHTED)
COAL PRODUC-
TION
(103TONS)
1,561
1,847
736
457
229
1,667
1,535
740
931
1,474
157
487
869
538
509
791
1,605
877
17,010
4,418
21,428
METHANE LIBERATED
(106m3)
VENTED
88.8
13.4
21.4
1.2
29.8
67.5
24.7
31.2
1.3
9.0
0.5
9.1
39.2
24.0
12.2
10.2
23.8
15.9
423.4
50.2
473.6
DRAINED
4.5
0.7
12.8
0
1.2
2.9
5.2
0
0
0
0
0
0.1
0.3
0.0
0.0
10.4
5.5
43.6
1.4
45.0
TOTAL
93.3
14.1
34.2
1.2
31.0
70.4
29.9
31.2
1.3
9.0
0.5
9.1
39.3
24.3
12.2
10.2
34.2
21.4
467.0
51.6
518.6
SPECIFIC
EMISSIONS
(m3/ton)
59.8
7.6
46.4
2.6
135.4
42.2
19.5
42.2
1.4
6.1
3.2
18.7
45.2
45.2
24.0
12.9
21.3
24.4
11.7
24.2
METHANE
HAZARD
High
High
Very High
High
Very High
Very High
Very High
High
High
High
Medium
High
Very High
Very High
High
High
Very High
High
Very High
Shaded mines indicate those profiled in this report.
* Mines marked with an asterisk are currently in the process of closure.
**The mine "Raspadskaya", although independent of any coal production association, is included here as it
is located in the Kuznetskugol region and may join the CPA in the future. Raspadskaya is Russia's largest
underground coal mine.
Source: PIER (1995)
32
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METHANE LIBERATION, RECOVERY, AND RESERVES
In 1994, 467 million cubic meters of methane were liberated from coal mines of the
Kuznetskugol CPA (Table 2-1). Of this, 423 million cubic meters were emitted via ventilation
systems, and the remaining 44 million cubic meters were emitted after being recovered by
drainage systems.
Only ten of the CPA's 18 active mines drained methane. The mines drain methane from both
surface and in-seam boreholes. The two mines profiled in this report (Abashevskaya and
Baidevskaya) together accounted for nearly 40 percent of the methane drainage.
None of the mines currently use the methane they recover. One of the most promising options
for using the methane is in boilers at the mines, which provide heat for mine facilities, and in
some instances, the surrounding community.
Methane reserves are estimated to range from 93 to 192 billion cubic meters for the balance
coal reserves of all mines in the Kuznetskugol CPA, and 47 to 97 billion cubic meters for the
balance coal reserves of active mines in the Kuznetskugol CPA. The lower end of these
ranges was calculated using an average gas content of 13.3 m3/ton. The higher end of these
ranges was calculated using an average specific emissions value of 27.5 m3/ton.
33
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ABASHEVSKAYA MINE
The Abashevskaya Mine is operated by the Kuznetskugol CPA and is located in the
southwestern portion of the Kuzbass, approximately 15 km east of the city of Novokuznetsk
(Figure 2-3). The mine area occupies 32.0 km2. Terrain and land use in the area are varied;
some areas are populated, some cultivated. In addition to coal mining, metallurgical and
construction industries predominate. Mining operations began in 1943.
Geologic Setting. Coal is found within the southeast flank of a northeast plunging syncline.
The coal is extracted from the upper Kazankovo-Markinsk, Uskatsk, and lower Leninsk
Formations of the Permian Kolchuginsk Series (Figure 2-2). Mined seams dip from 6 to 25°;
most of the seams are relatively flat. The average geothermal gradient is 2.8° C per 100
meters.
COAL PRODUCTION AND SPECIFIC EMISSIONS
The mine has one working level accessed
by 5 shafts. Coal is mined by longwall
methods, using shearing machines.
As shown in Graph 1, coal production
peaked in 1986 when 2.8 million tons
were produced. Output declined sharply
from 1989 through 1992, presumably due
to the same conditions affecting nearly all
Russian mines during that time period-
sharply reduced demand for coal, labor
unrest, and financial difficulties related to
the collapse of the Soviet system.
Production has since increased slightly,
and in 1994, the mine produced 1.6
million tons.
GRAPH 1. COAL PRODUCTION AND
SPECIFIC EMISSIONS, 1982-1994
SPECIFIC
EMISSIONS (m3/T)
COAL
PRODUCTION (kT)
3000
1982 1984 1986
1988
YEAR
DSPECIFIC EMISSIONS
1990 1992 1994
-COAL PRODUCTION
Graph 1 also shows that high specific emissions correspond with the low production of recent
years. This indicates that the decrease in coal production has not proportionally reduced the
flow of methane into the mine workings. Specific emissions were 59.8 m3/ton in 1994.
34
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ABASHEVSKAYA MINE
METHANE LIBERATION, DRAINAGE, AND RESERVES
MILLION m3
GRAPH 2. METHANE DRAINED AND
VENTED, 1980-1994
120
100
80
60
40--
20--
0
1982
1984
1986 1988
YEAR
1990
1992
1994
I METHANE DRAINED
D METHANE VENTED
Trends in methane ventilation,
drainage and total liberation at
Abashevskaya are shown in Graph 2.
Methane liberation peaked in 1990,
when 99.7 million cubic meters were
released. Emissions have remained
relatively high, despite declining coal
production. In 1994, a total of 93.3
million cubic meters of methane were
liberated from the Abashevskaya mine
(more than any other Kuzbass mine).
Of this, 88.8 million cubic meters were
emitted to the atmosphere via the
ventilation system, and 4.5 million
cubic meters were emitted after being
collected by the drainage system.
Methane Drainage. Abashevskaya drained 5 percent of the methane it liberated in 1994. The
principal recovery method is in-mine drainage via horizontal drilling into coal seams; this
typically occurs less than six months prior to mining, although methane is apparently recovered
from soufflard-prone seams 2 years or more in advance of mining. Abashevskaya also uses
horizontal boreholes to recover methane from gob areas. The mine does not employ surface
drainage methods, because surface access to the mine is difficult since three other mines lie
above Abashevskaya.
There are presently 10 vacuum pumps operating from seven stations. Four of these are on the
surface and drain gas via wells drilled into the gob area of Seam 26, which is in the lower
Leninsk Formation of the Permian Erunakovsk sub-series; the remaining three are
underground and drain gas from the soufflard-prone seams of Seam 14, which lies at the
boundary between the Kazankovo-Markinsk and Uskatsk Formations (Figure 2-2).
Abashevskaya has performed only preparatory work on Seam 14 to date.
Methane Reserves. Methane reserves are estimated to range from 2.3 to 9.7 billion cubic
meters for all balance coal reserves, and 1.4 to 5.7 billion cubic meters for the industrial coal
reserves. The lower end of these ranges was calculated using a weighted average methane
content of 14.4 m3/ton. The higher end of these ranges was calculated using a specific
emissions value of 59.8 m3/ton.
35
-------
ABASHEVSKAYA MINE
OPPORTUNITIES FOR USE OF MINE METHANE
None of the recovered methane is currently used, so it is all emitted to the atmosphere. At the
present time, mine management has no definite plans for future methane utilization, due to low
methane concentrations in the recovered gas. If quality can be improved, however, gas could
be used on-site in boilers to produce heat for the mine and the surrounding region.
The mine has three boiler houses, one of which is small and is expected to close. The two
larger boiler houses contain 3 boilers each. One of the large boiler houses provides heat to the
region; each of its three boilers consumes about 30 tons of coal per day, and output is about
20 Gcal per hour (this boiler house is being renovated with Chinese equipment to make it more
efficient). The other large boiler house provides heat for the mine. One of its boilers has an
output of 20 Gcal per hour; output of the other two is currently unknown.
Presently, the mine is purchasing heating coal from other mines to use in its boilers. If it used
methane in these boilers, the cost of purchasing this coal could be reduced. The methane
could be cofired with coal.
Without additional information, it is difficult to accurately estimate the amount of methane that
could be consumed by the mine's boilers. The potential demand for methane can be
illustrated, however, by the following example: if the boilers consume 180 tons of coal per day
(65,700 tons per year), they consume the energy equivalent of 49 million cubic meters of
methane annually; this is more than ten times the methane currently drained by the mine, and
82 percent of the total amount of methane liberated by the mine.
The mine sells its coal to a nearby preparation plant that is central to the Abashevskaya,
Nagornaya and Novokuznetskaya mines. This prep plant is another potential consumer of
coalbed methane, for coal drying and heating purposes.
MINING ECONOMICS
The 1993 average market price for Abashevskaya coal was 8,616 rubles ($US 8.62) per ton.
As of October 1, 1994, fat coal from Abashevskaya sold for 30,800 rubles ($US 13.28) per ton,
and gas fat coal sold for 33,100 rubles ($US 14.27) per ton. Production costs exceed sales
prices; the mine received 19.7 billion rubles ($US 8.5 million) in subsidies during the first 8
months of 1994.
MINE DISCHARGE WATER
The Abashevskaya Mine produces about 760 m3 of water per hour, with a mineral content
averaging 2.6 grams/liter. Between 30 and 50 percent of this water is used in the beneficiation
plant, as well as for dust control in the mine, fire control on the terracones or waste piles, and
in the boilers. Discharge information for the unused percentage was not available, however, all
mines of the Kuznetsk Basin are reported to have various facilities for mine water purification,
such as concrete sedimentation tanks and filtering stations.
36
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ABASHEVSKAYA MINE
SUMMARY DATA TABLES
COAL RESOURCES
Number of
Coal Seams
Now
Mining
4
Total
15
Thickness of
Mined Seams (m)
Average
1.88
Range
1.3-3.0
Overburden
Thick-
ness (m)
0-540
No. of
Seams
10
Balance Coal Reserves
(Million Tons)
Total
161.7
Industrial
95.7
Prepared for
Mining
24.2
COAL QUALITY AND RANK
Ash (%)
24.7
Heating Value (kcal/kg)
8,343
Moisture (%)
6.2
Sulfur (%)
0.44
Volatile Matter (%)
39.5
Rank
fat, gas fat,
gas (hvBb)
MINE CHARACTERISTICS
Hazard Classifications
Gas and Rock
Outburst
Sudden Outbursts
Dust Hazard
Dangerous
% of Coal
that is
Extracted
27%*
Current
Mining Depth
550 m
Surface
Elevation of
Mine Shaft
212 -400m
Annual Power
Consumption
(MWh)
58,080
LABOR
All Employees of Mining Complex
Laborers
3,156
Professional
499
Total
3,655
Employees Involved in Coal Production Only
Active
Mining
878
Prep.
Work
643
Other
Underground
588
Surface
893
Total
3,002
AMOUNT OF COAL SENT TO PREP PLANT (THOUSAND TONS)
1982
2170
1983
2362
1984
2204
1985
2697
1986
2692
1987
5806
1988
2575
1989
2396
1990
1800
1991
1413
1992
1400
1993
1531
LITHOLOGIC DATA
Lithology of Overburden
Lithology of Roof Rock
Aleurolite/siltstone-66.9%; Sandstone 21.9%; Argillite 6.3%; Coal 4.9% | Sandstone, aleurolite, argillite
DEMETHANIZATION SYSTEM
Pipeline
Length (km)
5.7
Diameter (mm)
100-150
Gas Output
Avg. Gas Output (m3/min)
40
Methane Concentration (%)
2-14
CARBON DIOXIDE EQUIVALENTS (Million Tons)
CO2 Equivalent of Total Methane Liberated
(Vented and Drained), 1994
1.39
CO2 Equivalent of Methane Drained, 1994
0.67
This figure is very low compared to the other profiled mines and may be erroneous.
37
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BAIDAEVSKAYA MINE
The Baidaevskaya Mine is operated by the Kuznetskugol CPA. It is located in the
southwestern portion of the Kuzbass, approximately 32 km northwest of the city of
Novokuznetsk, in the Ordzhonikidze industrial region (Figure 2-3). The mine area occupies
11.2 km2. The terrain is hilly, and the area is inhabited by about 70 thousand people. Mining
operations began in 1940.
Geologic Setting. The coal deposits are found in a west-northwest trending asymmetrical
syncline, bounded on the southwest by at least two large reverse-angle faults which extend to
the surface, and numerous smaller reverse-angle faults occurring only in the subsurface.
Currently, coal is extracted from the Leninsk Formation of the Permian Kolchuginsk Series
(Figure 2-2). Mined seams dip from 6 to 28°; about one-third of the seams are relatively flat,
while the remaining two-thirds are inclined and steeply inclined. The average geothermal
gradient is 2.8° C per 100 m.
COAL PRODUCTION AND SPECIFIC EMISSIONS
The mine has one working level accessed by 2 shafts. Coal is mined by longwall methods,
using shearing machines.
Coal production peaked in 1979 when 2.3
million tons of coal were produced. As
shown in Graph 1, production began a
long decline in 1989, and in 1994, only
0.7 million tons were mined. Difficult
geologic conditions, as well as the
collapse of the Soviet system, have
contributed to the decline.
Graph 1 also shows that high specific
emissions correspond with low coal
production of recent years. This indicates
that the decrease in coal production has
not proportionately reduced the flow of
methane into the workings. Specific
emissions were 46.4 m3/ton in 1994.
GRAPH 1. COAL PRODUCTION
AND
SPECIFIC EMISSIONS, 1982-1994
SP
EMI
80
60-
40-
20 -
0 -
ECIFIC COAL
SSIONS (m3/T) PRODUCTION (
1 X
'n.n.n.n.n.n.fl.n. , , ,
1982 1984 1986 1988 1990 1992
YEAR
__
199'
kT)
2000
1500
1000
500
0
I
I IRPFriFir EMISSIONS COAL PRODUCTION
38
-------
BAIDAEVSKAYA MINE
METHANE LIBERATION, DRAINAGE, AND RESERVES
As shown in Graph 2, a total of 34.2
million cubic meters of methane were
liberated from the Baidaevskaya Mine
in 1994. Of this, 21.4 million cubic
meters were emitted to the
atmosphere via the ventilation system,
and 12.8 million cubic meters were
emitted after being recovered from
drainage systems. The total amount of
methane liberated increases as the
amount drained increases, indicating
that fluctuations in the amount of
methane liberated in the mine
workings occur in regions where
drainage systems are used.
MILLION m
60
GRAPH 2. METHANE DRAINED AND
VENTED, 1980-1994
1984 1986 1988 1990 1992
YEAR
I METHANE DRAINED D METHANE VENTED
1994
Methane Drainage. The primary means of methane recovery is from horizontal boreholes
drilled into gob areas. Numerous gob wells have been drilled in Seam 29, which is in the
Leninsk Formation of the Erunakovsk sub-series. There are six vacuum pumps, all located on
the surface; two of these are currently in operation; they are designed to drain gas from gob
areas only.
Methane Reserves. Methane reserves are estimated to range from 1.2 to 4.3 million cubic
meters for all balance coal reserves, and 1.0 to 3.5 million cubic meters for industrial coal
reserves. The lower end of these ranges was calculated using a weighted average methane
content of 13.0 m3/ton. The higher end of these ranges was calculated using a specific
emissions value of 46.4 m3/ton.
OPPORTUNITIES FOR USE OF MINE METHANE
None of the recovered methane is used. It is all emitted to the atmosphere. Mine management
is considering using coalbed methane in the mine's boilers, however they state that this will
require a more systematic approach to recovery of higher quality gas.
The mine has 2 boiler stations, which consume a total of 700,000 tons of coal per year. One of
these stations contains 8 boilers and has a total output of 40 gigacalories per hour. The other
station currently contains 3 boilers whose output is 30 gigacalories per hours; it will soon
expand to 5 boilers, whose total output will be 70 gigacalories per hour.
39
-------
BAIDAEVSKAYA MINE
Without additional information, it is difficult to accurately estimate the amount of methane that
the mine's boilers could consume. The potential demand for methane can be illustrated,
however, by the following example: an annual coal consumption of 700 thousand tons9 is the
energy equivalent of 611 million cubic meters of methane, which is nearly 48 times the amount
of methane currently being drained at the mine each year, and 18 times the methane liberated
by the mine each year.
The mine's coal preparation plant is another potential consumer of coalbed methane. While it
does not thermally dry the coal, it does recover fine coal, an energy-intensive process which
could potentially be fueled by coalbed methane.
MINING ECONOMICS
In the 4th quarter of 1993, Baidaevskaya coal prices ranged from 15,900 rubles ($US 6.85) per
ton for gas-fat coal to 18,400 rubles ($US 7.93) per ton for gas-coking coal. Production costs
exceed sales prices; between January 1, 1993 and August 1, 1994, the mining complex
received 2.85 billion rubles (approximately $US 1.2 million) in subsidies.
MINE DISCHARGE WATER
The Baidaevskaya Mine produces about 9,300 cubic meters of water per day, with an average
mineral content of 2.8 grams/liter. Of this, about 5,580 cubic meters per day are used at the
mine. This includes 12 cubic meters per day consumed at the mine's beneficiation plant.
9 This coal consumption rate is considerably higher than that reported at any other mine. The reason for
this relatively high rate of consumption is unknown.
40
-------
BAIDAEVSKAYA MINE
SUMMARY DATA TABLES
COAL RESOURCES
Number of
Coal Seams
Now
Mining
3
Total
24
Thickness of
Mined Seams (m)
Average
3.31
Range
2.6-3.7
Overburden
Thick-
ness (m)
50
No. of
Seams
8- 17
Balance Coal Reserves
(Million Tons)
Total
92.5
Industrial
74.6
Prepared for
Mining
9.4
COAL QUALITY AND RANK
Ash (%)
24.7
Heating Value (kcal/kg)
8,343
Moisture (%)
5.4
Sulfur (%)
0.44
Volatile Matter (%)
39.5
Rank
fat, gas fat,
gas (hvBb)
MINE CHARACTERISTICS
Hazard Classifications
Gas and Rock
Outburst
Sudden Outbursts
Dust Hazard
Dangerous
% of Coal
that is
Extracted
84.5
Current
Mining Depth
400 - 600 m
Surface
Elevation of
Mine Shaft
210 -370m
Annual Power
Consumption
(MWh)
50,000
LABOR
All Employees of Mining Complex
Laborers
NA
Professional
NA
Total
2000
Employees Involved in Coal Production Only
Active
Mining
NA
Prep.
Work
NA
Other
Underground
NA
Surface
NA
Total
NA
AMOUNT OF COAL SENT TO PREP PLANT (THOUSAND TONS)
1982
1023
1983
1045
1984
1124
1985
743
1986
1011
1987
899
1988
758
1989
651
1990
564
1991
361
1992
119
1993
41
LITHOLOGIC DATA
Lithology of Overburden
sandstone, 30-40%; shale 60-70%; no limestone
Lithology of Roof Rock
aleurolite, siltstone,
sandstone
DEMETHANIZATION SYSTEM
Pipeline
Length (km)
NA
Diameter (mm)
NA
Gas Output (of pumping units)
Avg. Gas Output (m3/min)
12-14
Methane Concentration (%)
25-38
CARBON DIOXIDE EQUIVALENTS (Million Tons)
CO2 Equivalent of Total Methane Liberated
(Vented and Drained), 1994
0.51
CO2 Equivalent of Methane Drained, 1994
0.19
41
-------
BELOVOUGOL COAL PRODUCTION ASSOCIATION
The Belovougol Coal Production Association (CPA) operates in and around the city of Belovo
(Figures 2-1 and 2-4), in the Kemerovo region of the west-central Kuzbass. The CPA was
formed in 1990 as a result of reorganization. It comprises mines formerly belonging to
Leninskugol CPA, and one mine formerly of Prokopevskidrougol CPA.
The CPA contains six active hard coal mines, all which are underground mines. Belovougol
also contains numerous other enterprises, including a machine-building plant. The main
consumers of coal produced at Belovougol are coking plants, metallurgical plants, heat and
power stations, and municipal services.
The Chertinskaya mine is profiled in this report because it liberates and drains relatively large
volumes of methane.
COAL GEOLOGY, RESERVES, AND PRODUCTION
Geologic Setting. All coal deposits are complexly folded and faulted, manifest as en echelon
folds and thrust faults, striking approximately northwest. The main coal horizons occur in
Permo-Carboniferous Balakhonsk and Kolchuginsk sediments (Figure 2-2) which crop out
along the western border. Most of the coal is produced from deposits situated in closed
synclinal features.
Coal Reserves and Rank. All mines of the association are currently active, with documented
balance coal reserves totaling 778.4 million tons. Coal reserves consist equally of coking (fat)
coal (high volatile bituminous B); and energy coals (gas coal-high volatile bituminous B, and
long flame coal-high volatile bituminous C).
Coal Production. In 1994, mines of the Belovougol Coal Production Association produced 4.5
million tons of coal, down 17 percent from 5.4 million tons in 1993 (Table 2-2). The CPA
contains 2 coal preparation plants (Belovskaya and Chertinskaya), and coal separation is
carried out at the Inskaya mine.
METHANE LIBERATION, RECOVERY, AND RESERVES
In 1994, coal mines of the Belovougol Coal Production Association liberated nearly 114 million
cubic meters of methane (Table 2-2). Of this, 61 million cubic meters were emitted from mine
ventilation systems, and the remaining 52 million cubic meters were first recovered by drainage
systems, and then emitted. Of the four mines at Belovougol CPA that have methane drainage
systems, Chertinskaya drains the most (Table 2-2).
Belovougol mines use both surface and underground methane recovery methods. Wells are
drilled from the surface in front of the active face. These wells are connected to the vacuum
pumping stations after mining activities have moved past the well. These wells also drain the
thin overlying seams through perforations in the standpipe. Underground methods include
cross-measure boreholes drilled from the roadway into the overlying strata, and boreholes
drilled into the seam prior to mining.
42
-------
FIGURE
EXPLANATION
© CITY
MINE
$< PROEILED MINE
D PREP PLANT
S) POWER PLANT
\
-------
None of the mines currently use the methane they recover. One of the most promising options
for using the methane is in boilers at the mines, which provide heat for mine facilities, and in
some instances, the surrounding community.
Methane reserves associated with the coal reserves at all Belovougol mines are estimated to
range from 10 to 19 billion cubic meters. The lower end of this range was calculated using a
weighted average gas content of 13.3 m3/ton. The higher end of the range was calculated
using an average specific emissions value of 24.9 m3/ton.
TABLE 2-2. SUMMARY DATA FOR MINES OF THE BELOVOUGOL COAL
PRODUCTION ASSOCIATION (1994)
MINE
CHERTINSKAYA
INSKAYA
KOLMOGOROVSKAYA
NOVAYA
PIONERKA
ZAPADNAYA
TOTAL
AVERAGE (WEIGHTED)
COAL
PRODUCTION
(103TONS)
880
1,720
255
789
465
433
4,542
METHANE LIBERATED (106m3)
VENTED
27.6
3.0
3.4
11.7
2.0
13.6
61.4
DRAINED
34.1
0.0
0.0
3.3
2.5
12.3
52.2
TOTAL
61.7
3.0
3.4
15.0
4.6
26.0
113.6
SPECIFIC
EMISSIONS
(m3/T)
70.1
1.7
13.3
19.0
9.9
60.0
24.9
Chertinskaya Mine is profiled on the following page. Source: PIER, 1995
-------
CHERTINSKAYA MINE
The Belovougol CPA operates the Chertinskaya Mine, which is located in the west-central
portion of the Kuzbass, approximately 8 km south of the city of Belovo (Figure 2-4). The mine
area occupies 29.8 km2. Belovo is an industrial city with refinery plants, a tin enterprise, iron
casting plant and other manufacturing plants, in addition to coal mining. Coal production began
in 1952.
Geologic Setting. Coal is found within the eastern flank of a north-northwest trending closed
synclinal structure. The coal is extracted from Permian Kolchuginsk sediments (Figure 2-2),
dipping between 0 and 25 degrees. The average geothermal gradient is 2.8°C per 100 m.
There are three seams being mined from two levels, with seam thicknesses averaging 2.14 m.
The average overall thickness of the coals is 7.5 m, and the thickness of the overburden strata
varies from 50 to 365 m.
COAL PRODUCTION AND SPECIFIC EMISSIONS
The mine has two working levels
accessed by three shafts. Coal is mined
by longwall methods.
As shown in Graph 1, coal production
peaked in 1988 when 1.9 million tons
were produced. Output declined sharply
in 1991 with the collapse of the Soviet
economy. The mine produced less than
0.9 million tons of coal in 1994. Graph 1
also shows that high specific emissions
correspond with the low production of
recent years. This indicates that the
decrease in coal production has not
proportionally reduced the flow of
methane into the mine workings. Specific
emissions were 70.1 m3/ton in 1994,
higher than any other profiled mine.
GRAPH 1. COAL PRODUCTION AND
SPECIFIC EMISSIONS, 1982-1994
SPECIFIC
EMISSIONS (m3/T)
COAL
PRODUCTION (kT)
2000
1982 1984 1986 1988 1990 1992 1994
YEAR
DSPECIFIC EMISSIONS
-COAL PRODUCTION
45
-------
CHERTINSKAYA MINE
METHANE LIBERATION, DRAINAGE, AND RESERVES
In 1994, a total of 61.7 million cubic
meters of methane were liberated from
the Chertinskaya Mine. Of this, 27.6
million cubic meters were emitted to
the atmosphere via the ventilation
system, and 34.1 million cubic meters
were emitted after being recovered by
the drainage system.
Graph 2 shows trends in methane
ventilation, drainage, and total
liberation from 1982 through 1994; the
mine liberated more methane in 1994
than any of the previous years.
MILLION m3
GRAPH 2. METHANE DRAINED AND
VENTED, 1982-1994
1984
1986 1988
YEAR
1990
1992
1994
I METHANE DRAINED
D METHANE VENTED
Methane Drainage. The principal degasification method at Chertinskaya is in-mine drainage
via cross measure and horizontal boreholes drilled into the seam as they are preparing the
panel for development. They also drain methane from gob areas.
The Chertinskaya mine drains methane with eight vacuum pumping stations. The methane
output of each pumping station varies from 1.2 to 6.4 m3/min, and the concentration of
methane in the mixture varies from as low as 6 to 55 percent. In addition, there are two surface
pumping stations located at the mine headquarters. These pumping stations are designed to
pump the gas mixture from the remote surface pumping stations through a pipeline (see
utilization section) for use at the mine. The overall length of the underground methane pipeline
system is 19.5 km.
Methane Reserves. Methane reserves are estimated to range from 1.3 to 4.9 billion cubic
meters for all balance coal reserves, and 1.0 to 3.8 billion cubic meters for the industrial coal
reserves. The lower end of these ranges was calculated using a weighted average methane
content of 18.2 m3/ton; the higher end of these ranges was calculated using a specific
emissions value of 70.1 m3/ton.
OPPORTUNITIES FOR USE OF MINE METHANE
None of the recovered methane is used, so it is emitted to the atmosphere. The mine has
plans to use gas recovered from gob wells for power generation, but these plans have not yet
been implemented. When complete, the proposed system would be able to use a maximum of
150 m3 of methane per minute; 40 m3/min to supply fuel to a boiler for thermal heat, and the
remainder to fuel a diesel motor to generate electricity.
46
-------
CHERTINSKAYA MINE
Presently, the mine has one boiler station containing 6 boilers. Four of these boilers consume
6.5 tons of coal per hour, and produce 10 tons of steam per hour; the other 2 consume 13 tons
of coal per hour, and produce 10 tons of steam per hour. Mine management would like to
convert one of these boilers to utilize gas.
Without additional information, it is difficult to accurately estimate the amount of methane that
could be consumed by this boiler. The potential demand for methane can be illustrated,
however, by the following example: A boiler that consumes 6.5 tons of hard coal per hour
would consume 56,940 tons per year if operated full-time; this is the energy equivalent of 49.8
million cubic meters of methane annually. Similarly, a boiler that consumes 13 tons of hard
coal per hour (113,880 tons per year) uses the energy equivalent of 99.6 million cubic meters
of methane annually.
MINING ECONOMICS
In 1991, the sales price the mine received for its unprocessed coal was estimated to be 5.3
rubles ($US 2.94) per ton. In addition, the mine received 52.9 rubles ($US 29.39) per ton in
subsidies from the government. More recent data were unavailable.
MINE DISCHARGE WATER
The Chertinskaya Mine produces about 420 m3 of water per hour, with an average mineral
content of 3.0 grams/liter. From 30 to 50 percent of this water is used in the beneficiation plant,
as well as for dust control in the mine, and fire control on the terracones or waste piles.
Discharge information for the non-used percentage was not available, however, all mines of
the Kuznetsk Basin are reported to have various facilities for mine water purification, such as
concrete sedimentation tanks and filtering stations.
47
-------
CHERTINSKAYA MINE
COAL RESOURCES
Number of
Coal Seams
Now
Mining
3
Total
4
Thickness of
Mined Seams (m)
Average
2.14
Range
1.5-3
Overburden
Thick-
ness (m)
50-365
No. of
Seams
N/A
Balance Coal Reserves
(Million Tons)
Total
70.5
Industrial
54.5
Prepared for
Mining
2.4
COAL QUALITY AND RANK
Ash (%)
29.5
Heating Value (kcal/kg)
8370
Moisture (%)
6.6
Sulfur (%)
0.30
Volatile Matter (%)
38.8
Rank
gas (hvAb)
MINE CHARACTERISTICS
Hazard Classifications
Gas and Rock
Outburst
Sudden Outbursts
Dust Hazard
Dangerous
% of Coal
that is
Extracted
N/A
Current
Mining Depth
500 m
Surface
Elevation of
Mine Shaft
N/A
Annual Power
Consumption
(MWh)
N/A
LABOR
All Employees of Mining Complex
Laborers
N/A
Professional
N/A
Total
2600
Employees Involved in Coal Production Only
Active
Mining
N/A
Prep.
Work
N/A
Other
Underground
N/A
Surface
N/A
Total
N/A
AMOUNT OF COAL SENT TO PREP PLANT (THOUSAND TONS)
1982
5768
1983
5342
1984
1471
1985
1451
1986
1248
1987
1500
1988
1579
1989
1426
1990
1186
1991
N/A
1992
N/A
1993
N/A
LITHOLOGIC DATA
Lithology of Overburden
N/A
Lithology of Roof Rock
N/A
DEMETHANIZATION SYSTEM
Pipeline
Length (km)
19.5
Diameter (mm)
N/A
Gas Output
Avg. Gas Output (m3/min)
43.9
Methane Concentration (%)
6-55
CARBON DIOXIDE EQUIVALENTS (Million Tons)
CO2 Equivalent of Total Methane Liberated
(Vented and Drained), 1994
0.92
CO2 Equivalent of Methane Drained, 1994
0.51
48
-------
LENINSKUGOL COAL PRODUCTION ASSOCIATION
Leninskugol Coal Production Association (CPA) is located in and around the city of Leninsk-
Kuznetsk (Figures 2-1 and 2-4), an industrial center in the central Kuzbass. In addition to
mines, Leninsk-Kuznetsk contains numerous manufacturing enterprises, including those that
make fire-fighting equipment, chemicals, furniture, and textiles.
Leninskugol currently operates nine underground mines and one surface mine. This report
profiles the Kirov, Komsomolets, and Oktyabrskaya Mines because each liberates and drains
relatively large volumes of methane. The CPA also contains enterprises that repair mining
equipment and produce granulated carbon powder.
GEOLOGY, RESERVES, AND PRODUCTION
Geologic Setting. The CPA is bounded by the Altai Mountains to the east, and the Salarian
Range to the west. The deposits along the southwestern boundary are complexly folded and
faulted, manifest as en echelon folds and thrust faults, striking approximately northwest. The
main coal horizons occur in Permo-Carboniferous Balakhonsk and Kolchuginsk sediments
(Figure 2-2) which crop out along the eastern and western borders, which are superimposed
on the margin of the basin. Jurassic Tarbagansk sediments were deposited in discontinuous
synclinal features in the center.
Coal Reserves and Rank. Documented balance coal reserves of all mines of the association
total 3.3 billion tons; of this, active mines account for 1.6 billion tons. Coal reserves consist
predominantly of gas coal (high volatile bituminous B), with some coking coal (high volatile
bituminous A). There are also some Jurassic Tarbagansk deposits containing brown coal;
these deposits are not included in the reserve calculations, however, because they do not
contain methane and are therefore not relevant to this study.
Coal Production. In 1994, Leninskugol CPA produced 11.0 million tons of coal, down 11
percent from 12.4 million tons in 1993.
METHANE LIBERATION, UTILIZATION, AND RESERVES
Methane Liberation. In 1994, mines of the Leninskugol CPA liberated nearly 214 million cubic
meters of methane (Table 2-3). Of this, 130 million cubic meters were emitted via ventilation
systems, and the remaining 84 million cubic meters were emitted after being recovered by
drainage systems.
Six of the nine active mines drained methane in 1994, using wells drilled from the surface in
front of the active face. These wells are hooked up to a mobile vacuum pumping system after
mining activities have moved past the well. This type of gob gas drainage is typical of that
used in the Kuzbass, but much different from that employed in the US. Strong suction is used
to remove the methane from the seams, resulting in the entrainment of large amounts of air in
the gas mixture. The wells also drain the thin overlying seams through perforations in the
stand-pipe. None of the mines currently use this recovered methane. One of the most
promising options for using the methane is in boilers at the mines, which provide heat for mine
facilities, and in some instances, the surrounding community.
49
-------
Methane Reserves. Methane reserves associated with the coal reserves of all mines in the
Leninskugol CPA are estimated to range from 31 to 64 billion cubic meters, and that the coal
reserves of active mines in the CPA range from 15 to 31 billion cubic meters. The lower end of
these ranges was calculated using an average gas content of 9.4 m3/ton. The higher end of
these ranges was calculated using an average specific emissions value of 19.5 m3/ton.
TABLE 2-3. SUMMARY DATA FOR ACTIVE MINES OF THE LENINSKUGOL COAL
PRODUCTION ASSOCIATION (1994)
MINE
7 NOVEMBER
KIROV
KOLCHUGINSKOYE
KOMSOMOLETS
KUZNETSKAYA
OKTYABRSKAYA
POLYSAYEVSKAYA
YAROSLAVSKOGO
ZARECHNAYA
TOTAL
AVERAGE (WEIGHTED)
COAL
PRODUC-
TION
(103TONS)
1,550
2,565
933
1,543
1,067
1,013
1,153
1,010
122
10,956
METHANE LIBERATED (10b mj)
VENTED
17.8
25.0
5.3
18.3
15.9
18.5
12.7
11.2
6.0
130.7
DRAINED
0
5.3
2.2
38.1
0
25.4
10.4
1.3
0
82.7
TOTAL
17.8
30.3
7.5
56.4
15.9
43.9
23.0
12.5
6.0
213.3
SPECIFIC
EMISSIONS
11.0
11.8
8.0
36.6
14.9
43.3
19.9
12.4
49.2
19.5
Shaded mines are those profiled in this report.
Source: PIER, 1995; Tailakov, 1995
50
-------
KIROV MINE
The Kirov Mine is operated by the Leninskugol CPA and is located in the west-central part of the
Kuzbass. Coal production began in 1930, making it one of the oldest mines in the Kuzbass. The
mine area occupies 60.2 km2.
The Kirov mine is in the southwest section of the city of Leninsk-Kuznetsk, which has a
population of 146,000. In addition to mining, textile and construction enterprises are Leninsk-
Kuznetsk's major industries. There is thus a high demand for energy near the mine.
Geologic Setting. The coal deposits are found within the northern flanks of a north-northwest
trending closed synclinal structure. Several thrust faults intersect the property, trending roughly
north-south and dipping to the west. The coal is extracted from the Uskatsk, Leninsk, and lower
Gramoteinsk Formations of the Permian Kolchuginsk Series (Figure 2-2). Mined seams dip from 3
to 15°. Seventy-three percent of the seams are flat-lying, while the remaining 27 percent are
inclined. The average geothermal gradient is 2.8°C per 100 m.
COAL PRODUCTION AND SPECIFIC EMISSIONS
Coal is mined by mechanized longwall
methods from two working levels, using
shearing machines. As shown in Graph 1,
coal production remained fairly steady
during the period 1984 through 1990,
when the mine consistently produced 2.8
to 3.0 million tons of coal annually. In
1991, strikes at the mine resulted in a
sharp drop in output. Production has since
rebounded, with nearly 2.6 million tons
produced in 1994 and 2.3 million tons in
1995. Production should increase further
when mining of a new area, the Central
Field, begins. Preparation for mining the
Central Field is to begin soon. The mine
plans to produce 2.5 million tons of coal
annually from this field. Methane content
of the seams to be mined averages 15 to
17 cubic meters per ton.
GRAPH 1.
COAL PRODUCTION AND
SPECIFIC EMISSIONS, 1982-1995
SP
EMI
35-
30-
25 -
20 -
15 -
10 -
5-
0-
ECIFIC
SSIONS (m3/T)
^-^^
*S
*r
I982 1984 1986
COAL
PRODUCTION
»
~
I
»
-^
|-|
>
\
r-i
1
S~*^
/
l_l
n
..TL_.
0
1988 1990 1992 1994
YEAR
I=ISPECIFIC EMISSIONS
(kT)
3500
3000
2500
2000
1500
1000
500
0
-COAL PRODUCTION
51
-------
MILLION m3
GRAPH 2. METHANE DRAINED AND
VENTED, 1987-1995
1989
1991
YEAR
1993
1995
I METHANE DRAINED D METHANE VENTED
In 1995, a total of 29.6 million cubic
meters of methane were liberated from
the Kirov Mine. Of this, 24.3 million
cubic meters were emitted to the
atmosphere via the ventilation system,
and 5.3 million cubic meters were
emitted after being recovered by the
drainage system.
Trends in methane ventilation, drainage,
and total liberation from 1987 through
1994 are shown in Graph 2. The
apparent decrease in methane liberation
beginning in 1993 may reflect different
data sources, rather than an actual
decrease. Data for years 1987 through 1992 were obtained from the Leninskugol Coal
Production Association, whereas data for 1993 through 1995 were obtained from the Kirov
Mine. According to the Russian Coalbed Methane Center, the data for 1993 through 1995 are
probably more precise as they include only pure methane, whereas the data for 1987 through
1992 may include air in addition to methane.
Methane Drainage. Methane is drained at the Kirov from the surface, by pumping it from gob
areas through vertical boreholes. The mine does not used underground drainage methods.
There are 6 vacuum pumping stations operating from the surface.
Methane Reserves. Methane reserves are estimated to range from 2.6 to 3.6 billion cubic
meters for all balance coal reserves, and 1.6 to 2.3 billion cubic meters for the industrial coal
reserves. The lower end of these ranges was calculated using a weighted average methane
content of 8.5 m3/ton. The higher end of these ranges was calculated using a specific
emissions value of 11.8 m3/ton.
OPPORTUNITIES FOR USE OF MINE METHANE
None of the methane recovered by the Kirov drainage system is used; it is all emitted to the
atmosphere. EPA, in cooperation with the Kirov mine, is evaluating the potential for converting
two or more boilers at the Kirov mine to cofire methane with coal. Methane available from the
current mine degasification system could fuel three boilers at the optimal percentage of 35
percent gas. Future improvements to methane drainage practices at the mine, resulting in
increased quality and quantity of the drained methane, could justify the addition of a fourth
boiler.
Another possibility for on-site methane use is at the mine's coal preparation plant. The
beneficiation process does not include fine coal recovery and thermal drying. These
processes, if implemented, could potentially consume large amounts of coalbed methane.
KIROV MINE
52
-------
There is also a potential demand for methane in the surrounding region. A lamp factory, only 4
km from the mine, is a potential consumer, as is a cement production factory in Topki, 120 km
from the mine. Other local industries with process heat needs are those that produce bricks
and reinforced concrete. The nearest natural gas pipeline is only 20 km away.
MINING ECONOMICS
In 1995, coal production costs at the Kirov mine averaged 93,000 rubles ($US 18.97) per ton
of ROM coal. The State coal buying company paid 179,000 rubles ($US 36.53) per ton for this
coal, whereas free market customers paid 86,000 rubles ($US 17.55) per ton. The main
consumers of the coal are power stations and coking factories.
MINE DISCHARGE WATER
The Kirov Mine produces about 3,750 cubic meters of water per hour, whose mineral content
averages 2.5 grams/liter. Approximately 6-7 percent of this water is used; about 200 cubic
meters per hour for fire prevention, and about 300 cubic meters per hour in the beneficiation
plant.
53
-------
KIROV MINE
COAL RESOURCES
Number of
Coal Seams
Now
Mining
4
Total
24
Thickness of
Mined Seams (m)
Average
2.4
Range
1.3-2.8
Overburden
Thick-
ness (m)
0-500
No. of
Seams
2
Balance Coal Reserves
(Million Tons)
Total
306.3
Industrial
190.8
Prepared for
Mining
19.0
COAL QUALITY AND RANK
Ash (%)
18.5
Heating Value (kcal/kg)
7,980
Moisture (%)
7.1
Sulfur (%)
0.64
Volatile Matter (%)
40.0
Rank
gas
MINE CHARACTERISTICS
Hazard Classifications
Gas and Rock
Outburst
Not Dangerous
Dust Hazard
Dangerous
% of Coal
that is
Extracted
70
Current
Mining Depth
500 m
Surface
Elevation of
Mine Shaft
1 70-200 m
Annual Power
Consumption
(MWh)
120
LABOR
All Employees of Mining Complex
Laborers
N/A
Professional
N/A
Total
4075
Employees Involved in Coal Production Only
Active
Mining
2230
Prep.
Work
398
Other
Underground
N/A
Surface
968
Total
N/A
AMOUNT OF COAL SENT TO PREP PLANT (THOUSAND TONS)
1982
1715
1983
1980
1984
2307
1985
2227
1986
2541
1987
2599
1988
2447
1989
2412
1990
2184
1991
1512
1992
2052
1993
2159
LITHOLOGIC DATA
Lithology of Overburden
Sandstone 30-40%; Shale 50-55%; Coal 5%
Lithology of Roof Rock
N/A
DEMETHANIZATION SYSTEM
Pipeline
Length (km)
N/A
Diameter (mm)
N/A
Gas Output (of pumping units)
Avg. Gas Output (m3/min)
0.6 - 60
Methane Concentration (%)
4-40
CARBON DIOXIDE EQUIVALENTS (Million Tons)
CO2 Equivalent of Total Methane Liberated
(Vented and Drained), 1994
0.46
CO2 Equivalent of Methane Drained, 1994
0.08
54
-------
KOMSOMOLETS MINE
The Leninskugol CPA operates the Komsomolets Mine which is located in the west-central part
of the Kuznetsk Coal Basin, two km south of the city of Leninsk-Kuznetsk (Figure 2-4) The
mine area occupies 15.5 km2. Coal production began in 1933.
COAL GEOLOGY, RESERVES, AND PRODUCTION
Geologic Setting. The coal deposits are found within the outer northeastern flank of a north-
northwest trending closed synclinal structure. The coal is extracted from Permian Kolchuginsk
sediments, dipping to the southwest between 4 and 40 degrees.
There are 13 seams being mined from one level, with seam thicknesses averaging 2.65 m.
The average overall thickness of the coals is 20.1 m and the thickness of the overburden
strata varies from 0 to 450 m. The average geothermal gradient is 2.8°C per 100 m.
HARD COAL PRODUCTION AND SPECIFIC EMISSIONS
The mine has one working level accessed
by 4 shafts. Coal mined by longwall
methods, using shearing machines.
As shown in Graph 1, coal production
remained fairly steady in the late 1980's
at nearly 1.9 million tons of coal annually,
then declined sharply in 1991, reflecting
the collapse of the Soviet economy.
Production rebounded in 1993, then
decreased slightly to 1.5 million tons in
1994. The relatively high specific
emissions of 1991 and 1994 correspond
with production lows, indicating that
decreased production has not reduced
the flow of methane into the mine
workings.
GRAPH
1
. COAL PRODUCTION AND
SPECIFIC EMISSIONS, 1982-1994
SP
EMI
60-
50-
40
30 -
20 -
10-
0-
ECIFIC
SSIONS m3/T)
V.
^^
_
~i n
I982 1984
n
/
-
p.
1986
I=ISPECIFIC
^
0
1988
YEAR
^
COAL
PRODUCTION (
\
\
-
b
/^
A n
l
1990 1992 199'
EMISSIONS t
kT)
2500
2000
1500
1000
500
0
t
t COAL PRODUCTION
55
-------
KOMSOMOLE7S MINE
METHANE LIBERATION, DRAINAGE AND RESERVES
MILLION m3
GRAPH 2. METHANE DRAINED AND
VENTED, 1982-1994
1984 1986 1988 1990 1992
YEAR
I METHANE DRAINED D METHANE VENTED
1994
In 1994, the Komsomolets mine
liberated a total of 56.4 million cubic
meters of methane, more than any
previous year. Of this, 18.3 million
cubic meters were emitted to the
atmosphere via the ventilation system,
and 38.1 cubic meters were emitted
after being recovered by the drainage
system.
Trends for methane ventilation and
drainage from 1982 through 1994 are
shown in Graph 2. In 1994, recovery
efficiency was 68 percent, the highest
reported recovery efficiency of any of
the mines profiled.
Methane Recovery. There is no underground drainage at Komsomolets. Methane is drained
from gob areas only, by pumping the gas through boreholes drilled from the surface. The
boreholes are about 150 mm in diameter, and are spaced about 150 m apart. There are three
vacuum pumping stations operating from the surface which are designed to drain gas from gob
areas.
Komsomolets mine will soon be installing new gas recovery equipment that will drain gas from
mine pillars. This project was developed at the Moscow Mining Institute, under the direction of
RosUgol's Department of Perspective Development and Technical Policy.
Methane Reserves. Methane reserves are estimated to range from 2.6 to 6.7 billion cubic
meters for all balance coal reserves, and 2.4 to 6.2 billion cubic meters for the industrial coal
reserves. The lower end of these ranges was calculated using a weighted average methane
content of 13.9 m3/ton. The higher end of these ranges was calculated using a specific
emissions value of 36.6 m3/ton.
OPPORTUNITIES FOR USE OF MINE METHANE
None of the recovered methane is currently used; it is all emitted to the atmosphere. In the
near future, Komsomolets officials plan to use recovered methane for power generation. They
are also interested in using the methane as fuel for compressed natural gas vehicles.
The mine has two boiler stations. One contains four boilers, each of which produces 6.5 Gcal
of steam per hour, for a total output of 26 Gcal per hour. Total coal consumption at this boiler
station is 25,000 tons per year. The other boiler station contains three boilers, each of which
produce 6 Gcal of steam per hour, for a total output of 19.5 Gcal per hour. Total coal
consumption at this boiler station is 20,304 tons/year.
56
-------
KOMSOMOLE7S MINE
Without additional information, it is difficult to accurately estimate the amount of methane that
could be consumed by the mine's boilers. The potential demand for methane can be
illustrated, however, by the following example: if the boilers consume 45,304 tons of hard coal
per year, they consume the energy equivalent of 40 million cubic meters of methane annually.
This volume is roughly equal to 71 percent of the total amount of methane liberated at
Komsomolets in 1994, and more than the methane currently recovered by the mine's drainage
systems.
MINING ECONOMICS
In 1991, the price the mine received for its unprocessed coal was estimated to be 5.3 rubles
($US 2.94) per ton. Production costs exceeded sales prices; the mine received 14.6 rubles
($US 8.11) per ton in subsidies from the government in 1991. More recent data were
unavailable.
MINE DISCHARGE WATER
The Komsomolets Mine produces 470 m3/hr of water associated with mining operation, the
mineral content of this water averages 2.4 grams/liter. From 30-50 percent of this water is used
in the beneficiation plant, as well as for dust control in the mine, fire control on the terracones
or waste piles, and in the boilers. Discharge information for the non-used percentage was not
available, however, all mines of the Kuzbass have various facilities for mine water purification,
such as concrete sedimentation tanks and filtering stations.
57
-------
KOMSOMOLE7S MINE
COAL RESOURCES
Number of
Coal Seams
Now
Mining
13
Total
NA
Thickness of
Mined Seams (m)
Average
2.65
Range
NA
Overburden
Thick-
ness (m)
0-450
No. of
Seams
N/A
Balance Coal Reserves
(Million Tons)
Total
183.9
Industrial
170.2
Prepared for
Mining
15.0
COAL QUALITY AND RANK
Ash (%)
19.0
Heating Value (kcal/kg)
8,055
Moisture (%)
7.2
Sulfur (%)
0.56
Volatile Matter (%)
43.0
Rank
gas
MINE CHARACTERISTICS
Hazard Classifications
Gas and Rock
Outburst
Not Dangerous
Dust Hazard
Dangerous
% of Coal
that is
Extracted
N/A
Current
Mining Depth
450
Surface
Elevation of
Mine Shaft
N/A
Annual Power
Consumption
(MWh)
N/A
LABOR
All Employees of Mining Complex
Laborers
N/A
Professional
N/A
Total
2150
Employees Involved in Coal Production Only
Active
Mining
N/A
Prep.
Work
N/A
Other
Underground
N/A
Surface
N/A
Total
N/A
AMOUNT OF COAL PROCESSED AT PREP PLANT (THOUSAND TONS)
1982
1390
1983
1501
1984
1544
1985
1254
1986
1629
1987
1680
1988
1579
1989
1725
1990
1535
1991
N/A
1992
N/A
1993
N/A
LITHOLOGIC DATA
Lithology of Overburden
N/A
Lithology of Roof Rock
N/A
DEMETHANIZATION SYSTEM
Pipeline
Length (km)
N/A
Diameter (mm)
N/A
Gas Output (of pumping units)
Avg. Gas Output (m3/min)
44
Methane Concentration (%)
25-30
CARBON DIOXIDE EQUIVALENTS (Million Tons)
CO2 Equivalent of Total Methane Liberated
(Vented and Drained), 1994
0.84
CO2 Equivalent of Methane Drained, 1994
0.57
58
-------
OKTYABRSKAYA MINE
The Oktyabrskaya Mine, operated by the Leninskugol CPA, is situated in the west-central
portion of the Kuznetsk Coal Basin. The mine is 14 km south of the city of Leninsk-Kuznetsk
(Figure 2-4), within the Leninsk geological-industrial region. The mine area occupies 15.6 km2.
Coal production operations began in 1951.
Geologic Setting. The coal deposits are found within the northern flank of a north-northwest
trending closed synclinal structure. The coal is extracted from the Gramoteinsk Formation of
the Permian Kolchuginsk Series (Figure 2-2). Mined seams dip from 0 to 12*.
COAL PRODUCTION AND SPECIFIC EMISSIONS
The mine has one working level accessed
by accessed by 4 shafts. Coal is mined
by longwall methods, using shearing
machines.
As shown in Graph 1, coal production
peaked in 1983 when the mine produced
nearly 2.7 million tons. Output dropped
rather sharply in 1989, presumably due to
the collapse of the Soviet economy, and
has since declined even further. In 1994,
Oktyabrskaya produced about 1.0 million
tons of coal. Graph 1 also shows that
specific emissions peaked in 1992,
possibly reflecting new development at
the mine. Specific emissions were 43.3
m3/ton in 1994, indicating that decreasing
coal production has not proportionately reduced the flow of methane into the mine workings.
GRAPH 1. COAL PRODUCTION AND
SPECIFIC EMISSIONS,
SP
EMI
60-
50-
40 -
30 -
20 -
10-
0-
ECIFIC
SSIONS (m3/T)
~V
n PI
f] 1 1 1 1
1982 1984
"
I=ISPECIFIC
9
n
1986
*
A
\
t
r-i
1988
YEAR
-
1982-1994
COAL
PRODUCTION
V
t
1990
EMISSIONS
n\
-
*
1992 199
kT)
2800
2400
2000
1600
1200
800
400
0
\
COAL PRODUCTION
59
-------
OKTYABRSKAYA MINE
METHANE LIBERATION, DRAINAGE, AND RESOURCES
MILLION m3
GRAPH 2. METHANE DRAINED AND
VENTED, 1982-1994
1984
1986
1988
YEAR
1990
1992
1994
I METHANE DRAINED
D METHANE VENTED
In 1994, a total of 43.9 million cubic
meters of methane were liberated from
the Oktyabrskaya Mine. Of this, 18.5
million cubic meters were emitted to the
atmosphere via the ventilation system,
and 25.4 million cubic meters were
emitted after being recovered by the
drainage system. Methane emissions
have been declining since 1989, due to
decreasing coal production.
Methane Recovery. There is no
underground drainage of methane at
Oktyabrskaya. The mine drains gob
areas only, using seven gas pumping
units that recover gas through vertical boreholes drilled from the surface. The output of the
pumping stations varies from 1.5 to 5 m3/min of methane, and the concentration of methane in
the mixture varies from as low as 2-10 percent to as high as 30-40 percent.
Methane Reserves. Methane reserves are estimated to range from 2.4 to 10.5 billion cubic
meters for all balance coal reserves, and 2.0 to 8.5 billion cubic meters for the industrial coal
reserves. The lower end of these ranges was calculated using a weighted average methane
content of 10.0 m3 per ton. The higher end of these ranges was calculated using a specific
emissions value of 43.3 m3 per ton.
OPPORTUNITIES FOR USE OF MINE METHANE
Presently, none of the recovered methane is used; it is all emitted to the atmosphere. Mine
management has proposed the use of mine methane to power internal combustion (1C)
engines for generation of auxiliary power, and potentially to power the portable surface
pumping stations. Ultimately, the mine would like to use methane for varied power applications
to lower fuel and power costs at the mine.
The mine has 1 boiler station containing 5 boilers, each of which is capable of producing 10
tons of steam, or 35 Gcal, per hour. Coal consumption at the boiler station ranges from 20 tons
per day during the summer to 200 tons per day in the winter. The mining complex uses 2,400
cubic meters of hot water per day.
Without additional information, its is difficult to accurately estimate the amount of methane that
could be consumed by the mine's boilers. The potential demand for methane can be
illustrated, however, by the following example: if the boilers consume an average of 120 tons
of coal per day (40,150 tons per year), they consume the energy equivalent of 35.1 cubic
meters of methane annually. The methane currently drained from coal seams annually at the
mine could thus meet about 72 percent of the boilers' needs.
60
-------
OKTYABRSKAYA MINE
There is no preparation plant at Oktyabrskaya. Most of the coal produced from the mine is
ultimately consumed by heat and power plants, and is also used directly by those nearby
residences and industries that don't use steam heat.
The potential demand for natural gas in the surrounding community appears to be high. There
are several local industries with process heat needs. In addition, there are cement kilns and
glass factories in the towns of Topki and Osinniki, located 120 km and 200 km from the mine,
respectively.
MINING ECONOMICS
The 1993 average market price for Oktyabrskaya coal was 6,464 rubles ($US 6.46) per ton. In
the third quarter of 1994, ROM coal sold for 24,000 rubles ($US 10.34) per ton, while
concentrate sold for 30,000 rubles ($US 12.93) per ton. As of October 1, 1994, ROM coal from
Oktyabrskaya Mine sold for 50,000 rubles ($US 21.55) per ton. Production costs exceed sales
prices; the mine received 4.1 billion rubles ($US 4.1 million rubles) in subsidies in 1993.
MINE DISCHARGE WATER
The Oktyabrskaya Mine produces about 5.1 million cubic meters of water per year. Of this,
about 0.6 million cubic meters are used for production needs. The remaining 4.5 million cubic
meters are discharged to the river after treatment.
61
-------
OKTYABRSKAYA MINE
COAL RESOURCES
Number of
Coal Seams
Now
Mining
4
Total
13
Thickness of
Mined Seams (m)
Average
2.8
Range
1.6-3.4
Overburden
Thick-
ness (m)
0-400
No. of
Seams
9
Balance Coal Reserves
(Million Tons)
Total
242.5
Industrial
195.9
Prepared for
Mining
10.0
COAL QUALITY AND RANK
Ash (%)
18
Heating Value (kcal/kg)
8000
Moisture (%)
8.1
Sulfur (%)
0.32
Volatile Matter (%)
44
Rank
gas fat
MINE CHARACTERISTICS
Hazard Classifications
Gas and Rock
Outburst
Not dangerous
Dust Hazard
Dangerous
% of Coal
that is
Extracted
76
Current
Mining Depth
1 20-320 m
Surface
Elevation of
Mine Shaft
1 73-220 m
Annual Power
Consumption
(MWh)
64,397
LABOR
All Employees of Mining Complex
Laborers
N/A
Professional
N/A
Total
2750
Employees Involved in Coal Production Only
Active
Mining
N/A
Prep.
Work
N/A
Other
Underground
N/A
Surface
N/A
Total
N/A
AMOUNT OF COAL PROCESSED AT PREP PLANT (THOUSAND TONS)
1982
N/A
1983
N/A
1984
N/A
1985
N/A
1986
N/A
1987
N/A
1988
N/A
1989
N/A
1990
N/A
1991
N/A
1992
N/A
1993
N/A
LITHOLOGIC DATA
Lithology of Overburden
40% sandstone; no shale or limestone
Lithology of Roof Rock
mudstone, siltstone, sandstone
DEMETHANIZATION SYSTEM
Pipeline
Length (km)
N/A
Diameter (mm)
N/A
Gas Output (of pumping units)
Avg. Gas Output (m3/min)
1.5-5
Methane Concentration (%)
2-40
CARBON DIOXIDE EQUIVALENTS (Million Tons)
CO2 Equivalent of Total Methane Liberated
(Vented and Drained), 1994
0.65
CO2 Equivalent of Methane Drained, 1994
0.38
62
-------
REFERENCES CITED
-------
REFERENCES CITED
Bebchuk, B., 1993, personal communication during meeting with J. Marshall, E. Pelton, and R.
Pilcher: ICF/EKO consulting company, Moscow, March 3.
Craig, D., Hughes, G., and Canning, M., 1994, Restructuring the Russian coal industry:
Washington, D.C., World Bank, 89 p.
Dixon, C.A., 1990, Coalbed methane - A miner's viewpoint: in Workshop on Methane
Emissions From Natural Gas Systems, Coal Mining, and Landfills: Washington, D.C.,
April 1990, U.S. EPA.
EEER (East European Energy Report), 1995, Some Russian coal enterprises to be privatised:
Financial Times East European Energy report, Issue 46, p. 11.
EEER (East European Energy Report), 1996, Russian government caves in to striking miners:
Financial Times East European Energy, Issue 53, p. 6-7.
EPA, 1986, Supplement A to A compilation of air pollutant emission factors, v. 1: Stationary
and Point Sources: Office of Air Quality Planning and Standards, Research Triangle
Park, North Carolina.
EPA, 1994, Reducing methane emissions from coal mines in Russia and Ukraine: The
potential for coalbed methane development: Washington, D.C., US EPA, EPA 430-K-
94-003.
Ernst and Young, 1993, CIS tax and financial bulletin No. 93-2, March 4.
Flegon, A., 1995, Trade directory of the Former Soviet Union: London, Flegon Press, 218 p.
Interfax, 1993a, Kemerovo region demands concessions: Interfax Mining Report, v. II, Issue 6,
February 5-12, p. 4.
Interfax, 1993b, Moscow to revise customs duties: Interfax Mining Report, v. II, Issue 6,
February 5-12, p. 2
Interfax, 1993c, Russia to create state investment corporation: Interfax Mining Report, v. II,
Issue 6, February 5-12, p. 2.
Interfax, 1995, Statistics: Interfax mining and metals report, January 13-20, 1995.
IEA (International Energy Agency), 1994, Russian energy prices, taxes, and costs, 1993: Paris,
OECD/IEA, 101 p.
IEA (International Energy Agency), 1995a, Energy policies of the Russian Federation: Paris,
OECD/IEA, 323 p.
REF 1
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IEA (International Energy Agency), 1995b, Coal information 1994: Paris, OECD/IEA.
Kim, J., and Mutmansky, J.M., 1990, Comparative analysis of ventilation systems for a large-
scale longwall mining operation in coal seams with high methane content: Min. Res.
Eng., v. 3, no. 2, p. 99-117.
Ministry of Fuel and Energy, 1982, Environmental situation in the coal industry of Russia, Coal
Industry Committee, Moscow, 1992.
Moscow Times, 1993, Miners flex muscle in one-day strikes: Moscow Times, March 2.
Moscow Times, 1995, RosUgol hints at upturn in Russia's coal industry: Moscow Times April
30, p. 31.
Oil and Gas Journal, 1991, IGU details environmental qualities of gas: Oil and Gas Journal, v.
89, no. 29, p. 31.
Oil and Gas Journal, 1992, Russia pins energy hopes on western Siberia gas: Oil and Gas
Journal, Sept. 7, pp. 17-20.
Ostrander-Krug, K., and J. Krug, 1993, Evaluating western Siberian oil, gas opportunities -
deals: Oil and Gas Journal, February 22, pp. 66-69.
PIER (Partners in Economic Reform), 1993, Report of PIER mission to Moscow-Kuznetsk
Region: PIER, Washington, DC, 117 p.
PIER (Partners in Economic Reform), 1995, Kuzbass coal production data sent to Raven
Ridge Resources, Incorporated, via fax, September 1995.
PlanEcon, 1992, PlanEcon Energy Report: PlanEcon Inc., v. 2, no. 2.
PlanEcon, 1994a, PlanEcon Review and Outlook: PlanEcon Inc., Washington D.C.
PlanEcon, 1994b, PlanEcon Energy Report: PlanEcon Inc., v. 4, no. 4, 43 p.
PlanEcon, 1996, PlanEcon Energy Report: PlanEcon Inc., v. 6, no. 2, 35 p.
Price Waterhouse, 1994, Doing business in the Russian Federation: Moscow, Price
Waterhouse, 160 p.
Ronne, 1994, The legal framework for utilization of coalbed methane: in The Silesian
International Conference on Coalbed Methane Utilisation Proceedings, Volume 1:
Polish Foundation for Energy Efficiency, Katowice, Poland.
RosUgol, 1994, Main trends of Russia coal industry's restructurization project: Internal report
provided to PIER.
RosUgol, 1995, Data on Kuzbass coal production, provided to PIER and forwarded to Raven
Ridge Resources.
REF 2
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Shakmatov, V.Y, 1993, personal communication with E. Pelton and J. Marshall at Ministry of
Fuel and Energy, March 11, Kemerovo.
Sherer, Erik, and Clarke, Don, 1994, A cost comparison of selected U.S. and Russian coal
mines: Denver, Colorado, U.S. Department of Interior, Bureau of Mines, 258 p.
Skochinsky Mining Institute, 1991, Prognosnyi katalog shakhtoplastov Kuzneskogo Ugolnogo
Basseina s kharakteristikoi gorno-geologicheskikh i gornotekhnicheskikh faktorov na
1995 i 2000: The Skochinsky Mining Institute, Moscow, 439 p.
Skochinsky Mining Institute, 1993, Data tables received during visit to the Institute in March,
1993.
Sun Maoyuan, Huang Shengchu, and Zhu Chao, 1996, Investment opportunities for coalbed
methane development in China: paper prepared for the North American Coalbed
Methane Forum, April 18-19, 1996.
Tailakov, O., 1995, personal communication (information sent to Raven Ridge Resources in
August, 1995 in response to their request to the Russia Coalbed Methane
Clearinghouse for data on a variety topics related to coalbed methane use).
Tailakov, O., 1996, personal communication via e-mail between Raven Ridge Resources,
Incorporated, and the Russian Coalbed Methane Clearinghouse, regarding
Oblkemerovougol, March 1996.
USDOE EIA (Energy Information Administration), 1994, International energy annual 1992:
Washington, D.C., 196 p.
VostNII, 1995, Kuzbass coal production and methane emissions data; data obtained from
VostNII (Eastern Mine Safety Research Institute), forwarded to Raven Ridge Resources
via e-mail from Russian Coalbed Methane Clearinghouse, October, 1995.
Yanovsky, A.B., 1996, Revitalising Russian coal: World Coal, June 1996, p. 15-21.
Yevtouchenko, A., 1993, personal communication during meeting at Ministry of Fuel and
Energy, Moscow, March 17.
REF 3
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APPENDIX A - FORMING A JOINT VENTURE
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FORMING A JOINT VENTURE
The following is a general discussion of some of the steps that most companies must take
when investing in an energy enterprise in Russia, issues to consider, and information about
how to obtain support for this process.
Identifying an Investment Opportunity and a Russian Partner
Foreign investors often make contacts with Russian counterparts through business
connections in their home countries, word of mouth, or information communicated by
interested Russian parties. In addition, various U.S. government agencies have begun to
gather and disseminate information about business opportunities in the NIS countries. In the
United States, the U.S. Department of Commerce (DOC) sponsors a free business information
service for NIS countries (BISNIS), through the International Trade Administration.10
Once a company has identified an opportunity and a partner, three types of enterprises are
eligible for foreign investment in Russia:
Enterprises (and their branches or subsidiaries) in which foreign investors hold stock in
a Russian enterprise.11
Enterprises (and their branches or subsidiaries) that are wholly owned by foreign
investors.
Branches of foreign legal entities established as part of a joint venture.12
Foreign investors are responsible for verifying the legitimacy of Russian enterprises with which
they conduct their business, and must independently negotiate agreements with their Russian
counterparts. There is no official Russian governmental support for these activities, nor any
legal protection under Russian law for losses incurred due to corruption or false representation
of financial and other information.
10 BISNIS provides free information on a variety of industry areas in Russia: BISNIS, Room H-7413, U.S.
Department of Commerce (DOC), 14th Street and Constitution Avenue, N.W., Washington, D.C. 20230. Tel:
(202) 482-4655; Fax: (202) 482-2293; E-mail: BISNIS@ACCESS.DIGEX.COM; Home Page:
http:\\www.ita.doc.gov. In addition, DOC sponsors an Agent/Distributor Service through its district offices that
helps American companies to locate, screen, and assess agents, distributors, representatives, and other
Russian partners for $250.
11 Joint ventures fall into this category; however, a "joint venture" is not actually a legal enterprise structure.
Technically, the term "joint venture" means only that foreign investment or participation in enterprise
operations is involved.
12 Law of the Russian Federation "On Foreign Investments in the RSFSR," Article 3, July 4,1991.
A- 1
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Registration
Once a foreign investor has reached an agreement to establish a joint venture enterprise or to
invest in a Russian partner, the new enterprise must register with the Committee on Foreign
Investments of the Ministry of Finance.13
Foreign investors are also permitted to buy Russian property, buildings, stocks, and securities,
and to acquire rights to use land and natural resources.14 Enterprises with foreign investments
are permitted to create subsidiaries and branches both within Russia and in other countries.
"Expert Examinations"
The enterprise must present various forms of documentation in conjunction with an application
for registering (see below). Before submitting this documentation, however, the government
requires certain types of enterprises to obtain an "expert examination," which includes a
"sanitary-hygienic" examination and/or an ecological assessment of the enterprise's property
and holdings.15 Russian Foreign Investment Law stipulates that "enterprises with foreign
investments that involve large-scale construction or reconstruction" are required to obtain
expert examinations; no further clarification is provided. In general, however, it is likely that
most mining or gas enterprises would be subject to this requirement.
Enterprises in the oil and gas industries must obtain an additional approval from the Ministry of
Fuel and Energy. Oil and gas enterprises with foreign investments must submit founding
documents for consideration of the State Committee of Oil Industry or Gazprom.
Foreign investors must obtain official decisions on the results of any required state
examinations before submitting registration applications.
Documentation
Enterprises must present documents for registration to the Committee on Foreign Investment
of the Ministry of Finance. According to Russian Law on Foreign Investment, the Committee
must issue a decision within twenty-one days of the submission of an application. In practice,
however, this process can be time-consuming and costly.
Registration documents required for the three enterprise types identified above are listed in
Table A-1.
13 Supreme Soviet Decree No, 357, May 28, 1992.
14 Law of the Russian Federation "On Foreign Investments in the RSFSR," Article 3, July 4,1991.
15 Law of the Russian Federation "On Foreign Investments in the RSFSR," Article 14, July 4,1991.
A- 2
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TABLE A-1. DOCUMENTS REQUIRED FOR VARIOUS ENTERPRISE TYPES
Joint Venture
Written application from
foreign investor stating
intention to establish JV
Notarized founding
documents
Formal findings of any
required "expert
examinations"
Certification of
creditworthiness of foreign
investor
Proof of registry/legal status
of foreign investor in home
country
Notarized statement from
Russian JV partner
regarding creation of JV
Enterprise with 100
percent Foreign Ownership
Written application from
foreign investor stating
intention to establish JV
Notarized founding
documents
Formal findings of any
required "expert
examinations"
Certification of
creditworthiness of foreign
investor
Proof of registry/legal status
of foreign investor in home
country
Branches of Enterprises
and Legal Affiliates
Written application from
enterprise requesting
creation of the branch
Notarized founding
documents
Formal findings of any
required "expert
examinations"
Notarized copy of the by-
laws of the branch
Proof of registry/legal status
of foreign investor in home
country
Notarized decision of
administrative organ of
enterprise to establish JV
Licensing Process
If a foreign company is engaging in a production share agreement with a Russian partner, it is
necessary to obtain a license; otherwise a company must purchase a controlling interest in a
Russian enterprise with mineral rights in order to be able to claim ownership over minerals
produced by the enterprise. Three types of licenses are available: exploration, production,
construction and operation, or a combination license for production and exploration
(Ostrander-Krug and Krug, 1993).
In order to obtain a license, a company must apply to "GEOLCOM" either in Moscow or at one
of the regional offices. License applications are required to contain the following information:
Principal place of business;
Business arrangements with Russian financial and/or production partners;
Names of senior executives/owners;
Financial statement;
Technical capabilities of company and its contractors;
Five-year history of countries where foreign investor has operated;
Proposal for a license.
A- 3
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Upon submitting the license application and payment of the necessary fee, applicants receive
geological and other information necessary to conduct a feasibility study (Ostrander-Krug and
Krug, 1993).
Once a license is been approved, the company must register with the territorial geological fund
within 30 days. The license goes into effect only after registration.
Taxes. Fees and other Costs
Value Added Tax
In December 1992, the Russian Federation established a 20 percent value-added tax (VAT)
for all goods imported into Russia. This tax law applies to all goods imported into the country,
and is enforced by the Russian State Customs Committee and the State Tax Service. This is
of particular significance for foreign companies importing machinery for business purposes
(e.g., natural resources extraction). The only items not covered by the VAT tax are items that
are "re-exported" within six months, or items that are classified as "temporary imports," not for
re-sale. (The maximum duration for which goods may be considered "temporary" imports has
not yet been defined)(Ernst and Young, 1993).
The VAT is payable in rubles as soon as goods pass through customs. The 20 percent VAT is
assessed against the sum of the value of imported items listed on the customs declaration plus
any other taxes, tariffs, or duties already applied to the value of the goods.
Import and Export Duties
There is currently a 15 percent duty for importing equipment into the CIS. This means that an
item purchased abroad valued at $100 will cost $15 plus 20 percent of $115 (=$22) to import,
for a total of $37 of (effective) import taxes.
In early February 1993, the Russian Minister for Foreign Economic Relations announced that
Russian export duties on raw materials, currently set at 10 to 15 percent of customs value, will
be reduced and ultimately eliminated over the next two to three-year period. In addition, import
duties for raw materials and equipment are expected to be reduced from 15 percent to 5
percent of customs value (Interfax, 1993b).
Withholding Tax
Companies are charged a 15 percent withholding on dividends, which can be applied against
US withholding. There is a 20 percent withholding on foreign lease agreements.
Export and Import Rules
Enterprises whose foreign investment funds constitute 30 percent or more of the enterprise's
total funds, or which are completely foreign-owned, are permitted to export production without
an export license, and to import goods and equipment for their own use. According to the
Russian Law on Foreign Investment, "the currency earnings of these enterprises from the
export of their own production shall remain at their complete disposal," and other products are
exported and imported according to general Russian laws.16
16 Law of the Russian Federation "On Foreign Investments in the RSFSR," Article 25, July 4,1991.
A- 4
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Contributions to the Social Insurance fund
Both foreign and domestic companies are required to pay 39 percent of each worker's salary
for "benefits" provided by the Russian government. These funds go toward pensions, social
security, the economic stabilization funds, and other "social guarantees." However, foreign
investors are not required to obtain health insurance, workman's compensation or other forms
of insurance for Russian workers.
Insurance and Legal Guarantees
Property and Risk Insurance
The Russian Law on Foreign Investment has no substantive provisions concerning property
and risk insurance. However, President Yeltsin signed a decree in 1993 establishing a "state
investment corporation," to promote foreign investment in Russia. The corporation administers
a fund consisting of $1 billion in property, $50 million and 200,000 rubles that provides
"financial guarantees" to foreign investors in a variety of industries, including mining. The fund
provides insurance against a variety of risks, including "political risks" (Interfax, 1993c).
Consulting Services
Russian organizations and consulting services have recently emerged to help foreign investors
cope with complex and often contradictory Russian legal requirements. For example, foreign
investors can obtain consulting services for the registration and licensing process and for
conducting environmental assessments in conformance with Russian requirements. Even with
this assistance, however, foreign investors cannot always expect to circumvent time delays
and costs associated with registration (Bebchuk, 1993).
A- 5
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APPENDIX B - LIST OF CONTACTS
-------
LIST OF CONTACTS
Christine Milligan
Project Director
Partners in Economic Reform (PIER)
15 NovyArbat, Rooms 2101, 2235
21910, Moscow, Russia
Tel: (7) (095) 203-0598, 202-8234
Fax: 203-0593
E-mail: pier@glas.apc.org
Oleg Tailakov
Director
Russian Coalbed Methane Center
Rukavishnikova 21, Room 208
Kemerovo 650610, Russia
Tel: (7) (3842) 259-300, 259-366
Fax: (7) (3842)211-838
E-mail: root@tailak.kemerovo.su
Gene V. George
Chief, Regional Office of Energy
US Agency for International Development
Bolshoi Deviatinsky, 6
Moscow 121099, Russia
Tel: (7) (095) 956-4281, x. 5653
Fax: 956-3406
Albert Guk
Technical Director
Kuznetzkugol Coal Production Association
Kurako Street, 33
Novokuznetsk 654079, Russia
Tel: (7) (3843) 42 21 84
Fax: 481971
Stanislav S. Zolotykh
Technical Director
Belovougol Coal Production Association
12 Lenin Street
Belovo 652600, Russia
Tel: (7) (384) 522-1234
Fax: 522-3520
Leninskugol Coal Production Association
ul. Stroitelnaya, 1
Leninsk-Kuznetsk 215713, Russia
Tel: (7) (38456) 433-317, 424-00, 212-76
Fax: 424-90,202-64
Ivan A. Ivlev
Director
Kirov Mine
3 Kirsanov Street
Leninsk-Kuznetsk 652503, Russia
Tel:(7) (38456) 219-00, 200-24
Fax: 204-45
Oktyabrskaya Mine
2 Makarenko Street
Polysajevo 652256, Russia
Tel: (7) (38456) 515-59
Fax: 255-95
Vladimir V. Sichow
Director
Chertinskaya Mine
Yuzhnaya Street
Belovo 652607, Russia
Tel: (7) (38452) 317-77, 362-00
Yuri Garlev
Chief Engineer
Komsomolets Mine
Leninsk-Kuznetsk 652519, Russia
Tel: (7) (38456) 208-57
Abashevskaya Mine
1 Shorskaya Street
Novokuznetsk 654013, Russia
Tel: (7) (3843) 310-372
Baidaevskaya Mine
Novokuznetsk 654033, Russia
Tel: (7) (3843) 310-137, 662-222
James S. Marshall
Raven Ridge Resources, Incorporated
584 25 Road
Grand Junction, CO 81505 USA
Tel: (970) 245-4088
Fax: (970) 245-2514
E-Mail: jmarshall@ravenridge.com
B-1
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APPENDIX C - EXPLANATION OF RUSSIAN
CLASSIFICATION SYSTEMS USED
-------
EXPLANATION OF RUSSIAN RESOURCE CLASSIFICATION, COAL RANK, AND
MINE HAZARD CLASSIFICATION SYSTEMS USED IN THIS REPORT
MINERAL RESOURCE CLASSIFICATION SYSTEM
The coal resource data presented in this report pertain to documented, or explored reserves.
As in other countries, documented reserves are categorized according to the degree of
assurance that they exist. In Russia, documented reserves comprise degrees of assurance A,
B, Ci, and C2. They are based on the degree of exploration that has been carried out. The
classification terms used in Russia are equivalent to descriptive terms used in the U.S., as
shown in Table C-1.
TABLE C-1. COMPARISON OF RESOURCE CLASSIFICATION SYSTEMS
FORMER USSR RESERVE CLASSIFICATION SYSTEM
RESERVES
RESOURCES
CATEGORIZED BY EXTENT
OF STUDY
EXPLORED
PRELIMINARILY
ESTIMATED
PREDICTED
A
B
Ci (30
percent)
Ci(70
percent) &
C2
Pi
P2
P3
GROUPED
ACCORDING TO
ECONOMIC
SIGNIFICANCE
BALANCE
NON-
BALANCE
WESTERN
RESOURCE
CLASSIFICATION
SYSTEM
PROVEN
PROBABLE
POSSIBLE
C-1
-------
In Russia, documented reserves are further subdivided into balance and non-balance
reserves. These terms are defined below.
Balance coal reserves: documented reserves that meet criteria related to quantity, quality,
technology, geologic conditions, and mining conditions. Criteria vary according to basin.
Balance coal reserves are further subdivided into industrial and non-industrial reserves.
Non-balance coal reserves: documented reserves that do not meet the balance criteria for
one or more reasons.
Industrial coal reserves: that portion of the balance reserves that is designated for extraction
according to the mine plans and using available technology.
Non-industrial coal reserves: balance reserves which are not intended for production using
available technology and production systems.
COAL RANK
In Russia, as in other countries, coal is ranked according to various parameters, including its
carbon content, volatile matter content, and heating value. Table C-2 shows the approximate
correlating descriptive terminology used in U.S. and Russia. The U.S. rank equivalents are
approximate in that the ranges of the parameters used in the former USSR (shown here) are
not identical to those used in the U.S.
TABLE C-2: COMPARISON OF U.S. & FORMER USSR COAL CLASSIFICATION SYSTEMS
RANK
LONG-FLAME
GAS
GAS- FAT
FAT
COKING
LEAN-CAKING
LEAN
ANTHRACITE
VOLATILE
MATTER
vas received percent
>35
>35
27-35
27-35
18-27
14-22
8-17
>8
HEATING VALUE
Q kcal/kg
7300-8100
7000-8600
8300-8750
8300-8750
8500-8800
8500-8800
>8400
<8400
CARBON
CONTENT
C percent
77-83
81-87
81-87
85-88
88-91
90-93
91-94
94-97
APPROXIMATE
U.S. EQUIVALENT
HIGH VOLATILE
BITUMINOUS C
HIGH VOLATILE
BITUMINOUS B
HIGH VOLATILE
BITUMINOUS A
MEDIUM
VOLATILE
BITUMINOUS
LOW VOLATILE
BITUMINOUS
ANTHRACITE
C- 2
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METHANE EMISSIONS CLASSIFICATION
Russian mines are classified according to their specific emissions (amount of methane
liberated per ton of coal mined). The mines are classed according to outburst hazard. A brief
description of each classification follows.
Non-gaseous: The mine has no measurable methane emission.
Category 1: The mine emits less than 5 m3 of methane per ton of coal mined.
Category 2: The mine emits between 5 and 10 m3 of methane per ton of coal mined.
Category 3: The mine emits between 10 and 15 m3 of methane per ton of coal mined.
In Danger of Sudden Outburst: The mine has sudden outbursts of methane from soufflards.
COAL DUST CLASSIFICATION
Russian mines are also classified according to the amount of coal dust present. The criteria
used for the classification were unavailable.
C- 3
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APPENDIX D - FOR MORE INFORMATION
D- 1
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FOR MORE INFORMATION...
For more information on coalbed methane recovery experiences, project potential, or program activities
and accomplishments, contact:
Coalbed Methane Program Manager
US Environmental Protection Agency
Mail Code 6202J
Atmospheric Pollution Prevention Division
401 M Street, SW
Washington, DC 20460
Program Hotline: 1-800-952-4782
Facsimile: 202 233-9569
Automated Faxback: Call 202 233-9659 and enter #1740
Internet: schultz.karl@epamail.epa.gov
Home Page: www.epa.gov/coalbed.htm
Selected list of EPA Coalbed Methane Outreach Reports:
USEPA (U.S. Environmental Protection Agency). Reducing Methane Emissions From Coal Mines
in China: The Potential for Coalbed Methane Development. Office of Air and Radiation (6202J).
Washington, D.C. EPA 430-R-96-005. July 1996.
USEPA (U.S. Environmental Protection Agency). Reducing Methane Emissions From Coal Mines
in Poland: A Handbook for Expanding Coalbed Methane Recovery and Utilization in the Upper
Silesian Coal Basin. Office of Air and Radiation (6202J). Washington, D.C. EPA 430-R-95-003.
April 1995.
USEPA (U.S. Environmental Protection Agency). Reducing Methane Emissions from Coal Mines
in Russia and Ukraine: The Potential for Coalbed Methane Development. Office of Air and
Radiation (6202J). Washington, D.C. EPA 430-K-94-003. April 1994.
USEPA (U.S. Environmental Protection Agency). Assessment of the Potential for Economic
Develoment and Utilization of Coalbed Methane in Czechoslovakia. Office of Air and Radiation
(6202J). Washington, D.C. EPA-430-R-92-1008. October 1992.
USEPA (U.S. Environmental Protection Agency). Finance Opportunities for Coal Mine Methane
Projects: A Guide to Federal Assistance. Office of Air and Radiation (6202J). Washington, D.C.
August 1995.
USEPA (U.S. Environmental Protection Agency). Finance Opportunities for Coal Mine Methane
Projects: A Guide for Vest Virginia. Office of Air and Radiation (6202J). Washington, D.C.
August 1995.
D-1
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USEPA (U.S. Environmental Protection Agency). Finance Opportunities for Coal Mine Methane
Projects: A Guide for Southwestern Pennsylvania. Office of Air and Radiation (6202J).
Washington, D.C. EPA-430-R-95-008. June 1995.
USEPA (U.S. Environmental Protection Agency). Economic Assessment of the Potential for
Profitable Use of Coal Mine Methane: Case Studies of Three Hypothetical U.S. Mines. Office
of Air and Radiation (6202J). Washington, D.C. EPA-430-R-95-006. May 1995.
USEPA (U.S. Environmental Protection Agency). Identifying Opportunities for Methane
Recovery at U.S. Coal Mines: Draft Profiles of Selected Gassy Underground Coal Mines.
Office of Air and Radiation (6202J). Washington, D.C. EPA-430-R-94-012. September 1994.
USEPA (U.S. Environmental Protection Agency). The Environmental and Economic Benefits of
Coalbed Methane Development in the Appalachian Region. Office of Air and Radiation (6202J).
Washington, D.C. EPA-430-R-94-007. April 1994.
USEPA (U.S. Environmental Protection Agency). Opportunities to Reduce Anthropogenic
Methane Emissions in the United States. Report to Congress. Office of Air and Radiation
(6202J). Washington, D.C. EPA-430-R-93-012. October 1993.
USEPA (U.S. Environmental Protection Agency). Anthropogenic Methane Emissions in the
United States: Estimates for 1990. Report to Congress. Office of Air and Radiation (6202J).
Washington, D.C. EPA-430-R-93-003. April 1993.
USEPA (U.S. Environmental Protection Agency). Options for Reducing Methane Internationally -
Volume 1: Technological Options for Reducing Methane Emissions. Washington, D.C. EPA
430-4-93-006 A. July 1993.
USEPA (U.S. Environmental Protection Agency). Options for Reducing Methane Internationally -
Volume 2: International Opportunities for Reducing Methane Emissions. Washington, D.C.
EPA 430-R-93-006 B. October 1993.
USEPA (U.S. Environmental Protection Agency). A Guide for Methane Mitigation Projects: Gas to
Energy at Coal Mines. Draft. February 1996.
D-2
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