&EPA
          United States
          Environmental Protection
          Agency
            Air and Radiation
            (ANR-445)
EPA/430/R-92/1008
October 1992
Assessment of the Potential for
Economic Development and
Utilization of Coalbed Methane
in Czechoslovakia
  Germany
                                   Printed on Recycled Paper

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                                DISCLAIMER

All interpretations are opinions based on data obtained from third party sources, and
Raven Ridge Resources, Incorporated cannot, and does not guarantee the accuracy
or correctness of any interpretations, and we shall not, except in the case of gross or
willful negligence on our part, be liable or reponsible for any loss, costs, damages or
expenses incurred or sustained by anyone resulting from any interpretation made by
any of our officers,  agents or employees.

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                                         EPA/430/R-92/1008
ASSESSMENT OF THE POTENTIAL FOR ECONOMIC
       DEVELOPMENT AND UTILIZATION OF
    COALBED METHANE IN CZECHOSLOVAKIA
              Global Change Division (6202J)
              Office of Atmospheric Programs
                Office of Air and Radiation
        United States Environmental Protection Agency
                  401  M Street, S.W.
                Washington, D.C.  20460
                    (202) 233-9190

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                           ACKNOWLEDGEMENTS
      The U.S. EPA gratefully acknowledges the work of Raven Ridge Resources, Inc. under
EPA Contract 68-D9-0068.
      The efforts of the many reviewers of drafts of this report are also appreciated.  The
U.S. EPA is indebted to the following Czechoslovakian institutions and individuals for their
gracious assistance in the preparation of this report.

          Ministry for Economic Policy and Development of the Czech Republic

               Federal Ministry of Economy, Department of Energy Policy

                   Ministry of the Environment of the Czech Republic

                                  DPB Paskov, a.s.
                             Zdenek Vavrusak, Director
                          Dr. Georges Takla, Deputy Director

                                    OKD, a.s.

                   Officials of the Starfc, Dardon, and CSM Collieries

                             Ostrava Mining University

                         SMP Gas  Storage Facility, Stramberk

                            Nova  Hut Metallurgical Plant

                            VUPEK Institute for Research

                               Czech Gas Company

                        SEVEn The Energy Efficiency Center

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                                    SUMMARY

INTRODUCTION

This report presents an assessment of Czechoslovakia's coalbed methane resources commissioned by
the U.S.  Environmental Protection Agency.  The study evaluates the potential for coalbed methane
development and utilization within Czechoslovakia, and its impact on the country's environmental and
energy needs.

This study assesses  the  coalbed  methane resource potential  of  Czechoslovakia, focusing  on the
coalbed methane resources of the Ostrava-KarvinS Mining District,  the largest active mining region in
the country. Methane recovery in coal  mining areas is emphasized because methane emitted to the
atmosphere as a result of mine operations represents the loss of a valuable energy resource,  and
because  it is a greenhouse gas affecting the global climate.


KEY FINDINGS

•      Coalbed methane  is an abundant domestic natural  gas  resource with excellent potential  for
       increased  development  and utilization  in  Czechoslovakia. Coal  mining operations vent
       tremendous amounts of methane to the atmosphere.

              Coalbed methane  reserves contained in balance coal reserves of active  mining
              concessions in the Ostrava-KarvinS  Mining  District (OKR)  of Czechoslovakia  are
              estimated  to  be between 10 and  70 billion cubic meters. This estimate  may be
              conservative in that it does not include methane contained in coal seams deeper than
              1200 m.   The  total  coalbed  methane  resource associated  with all  coal  mine
              concessions in the OKR is estimated to be between 50 and 370 billion cubic meters.

              Methane resource estimates were not prepared for other Czechoslovakian hard coal
              basins due to lack of data on emissions or gas  content of the coal.  However, these
              basins may also contain substantial methane resources.

              Large volumes of coalbed methane are liberated by coal mines each year, representing
              a serious  waste  of energy. It is estimated that about 524 million cubic meters of
              methane are liberated as a result of mining operations each year in the OKR alone, and
              that only 125 million  cubic meters (24 percent)  of this gas are utilized.


•      There appear to be many opportunities for Czechoslovakian mines to develop profitable projects
       to expand the recovery and use  of coalbed methane. These mines have numerous options with
       respect to both recovery and utilization technologies.

              Using demonstrated technologies, it appears likely  that Czechoslovakian mines could
              recover and use 50 percent or more of the methane liberated by mining.

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       Additional recovery could be achieved by employing an integrated approach to methane
       recovery,  including drainage prior to, during, and after mining, and, where feasible
       utilizing low methane concentration ventilation air as combustion air in power plants.
       If such an approach were used within the active concessions, 80 to 90 percent of the
       methane that would  be liberated and otherwise lost by mining operations could be
       recovered.
Economic problems will worsen as domestic energy production continues to decline, the
demand for imported energy increases, and  imported energy costs increase to meet world
energy prices. A new source of domestic energy would reduce economic burdens.

       The contribution of natural gas to Czechoslovakia's energy fuel mix is likely to increase
       as the use of brown  coal  and  lignite decreases, and as domestic coal production
       decreases due to the closing of mines.

       Ninety-five percent  of all natural gas consumed in  1991 was imported, and import
       costs are rising  rapidly to meet world  prices. Czechoslovakia has limited conventional
       natural gas resources and needs to develop its unconventional gas resources if it is to
       reduce dependence  on imports.

       Considering the status of the energy economy described above, Czechoslovakia would
       benefit from development of a "new" domestic gas  resource:  coalbed methane.
The value of recovering and using large amounts of coalbed methane will become even more
significant because of recently enacted environmental legislation.

       Under the 1991 Hydrocarbons Law, it appears that fines for emission of methane to
       the atmosphere could  be imposed in 1992. Initially, the fines are set at a level of $14
       U.S./thousand cubic  meters. By 1997,  however, the fines  will increase to  $47
       U.S./thousand cubic meters. At the current level of emissions in the OKR,  these fines
       could cost coal mines an estimated $5.6 million U.S. in 1992. Even when the reduction
       in emissions expected to result from the planned closure of several mines is taken into
       account, the fines could reach $11.6 million U.S. annually by 1997.
The development of coalbed methane could make important contributions to Czechoslovakia's
energy economy as well as benefiting the local and global environment.

       Czechoslovakia will likely continue reducing its dependency on coal, coke oven gas,
       and town gas in order to reduce the environmental problems their use creates. This will
       provide welcome reductions in pollutants, but could increase the country's dependence
       on  imported  energy.  Aggressive  utilization  of  coalbed  methane could  permit
       Czechoslovakia to achieve its environmental goals and increase domestic production
       of cle?n burning energy.

       Aggressive coalbed methane development and utilization would also decrease methane
       emissions dramatically, which  has important implications for the global climate.
       Methane is a potent greenhouse gas. In addition, it contributes to tropospheric ozone
       formation and may contribute to stratospheric ozone depletion.

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Coalbed methane could be used to generate both steam and electricity, displacing the
use of hard  coal and lignite. Coalbed methane can also  be  transported by pipelines
directly to end users, replacing the town gas and coke oven gas currently being used.
Displacement of hard coal, lignite, town gas or coke oven gas would improve local air
quality.

Increased mine productivity would result from increased methane drainage, improving
the economic viability of hard coal  mines.  Mine revenues might be further enhanced
through joint ventures with gas production companies.

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                     RECOMMENDATIONS


An aggressive program of coalbed methane development and utilization should be pursued in
Czechoslovakia  in order to help the nation achieve its economic and environmental goals.

       At mining operations, an integrated approach to methane recovery should be evaluated
       and, where economically feasible, implemented.

       All utilization options for coalbed methane should be evaluated to ensure that efficient
       uses for the gas are developed. This evaluation should include the assessment of using
       or enriching gas that is contaminated with mine air during the production process.

Facilitating the  rapid development of coalbed methane  will  require the concerted effort  of
Czechoslovakian federal and republic governments, international development agencies, foreign
governments, and private industry.
       Information  about  coalbed  methane  resources  should be  disseminated  within
       Czechoslovakia. The coalbed methane clearinghouse in Katowice, Poland should be
       expanded to a regional  facility  encompassing  Czechoslovakian coalbed  methane
       information.

       Training programs should  be developed for government and industry personnel to raise
       awareness of coalbed methane and the techniques and technology for development
       and  utilization.  This training should  include technical,  economical,  and regulatory
       components presented as seminars, workshops, fellowships, and trade missions.

       The  applicability of several methane recovery approaches should be assessed at OKR
       mines, and the  opportunity to both increase gas quantities and improve gas quality
       (concentration)  should be evaluated. This evaluation could be performed by  methane
       drainage consultants,  working in conjunction with OKR mine experts.

       A study  of the  potential  for methane  use in  power  generation  in the  OKR is
       recommended.  The study could recommend appropriate modifications to existing
       facilities, and/or development of new facilities. An important aspect of this study would
       be an assessment of the  feasibility of using mine ventilation air as combustion air in
       nearby boilers.

       The  feasibility of enriching low-methane gas (30 to 50 percent methane) to pipeline
       quality (90 percent methane) should be evaluated. If enrichment proves technically and
       economically feasible, opportunities  for  using gas recovered from mine  methane
       drainage systems could increase substantially.

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It may be desirable to evaluate the potential for increasing the underground gas storage
capacity  of the OKR, as  the ability to store coalbed methane to allow for  seasonal
fluctuations in demand could make it more economical to use. Mines in the OKR slated
for closure should be studied as  potential sites for gas  storage, modeling them after
similar facilities at Perrones-Lez-Binche in Belgium.

The  federal   and  republic governments  should  give priority  to  coalbed  methane
development  and  utilization when developing new energy policies.  Policies should be
based  on an  assessment  of  the potential  environmental,  socioeconomic,  and
infrastructure impacts of  coalbed methane development.

Potential  markets  for methane produced by active coal mines should be assessed, and
the investments required  to bring this gas to market  identified.
                               VI

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                        TABLE OF CONTENTS

SUMMARY  	'
RECOMMENDATIONS	v
LIST OF FIGURES	 ix
LIST OF TABLES  	x
ACKNOWLEDGEMENTS 	*'

CHAPTER 1   COALBED METHANE IN CZECHOSLOVAKIA'S ENERGY ECONOMY  	   1
      1.1    INTRODUCTION	   1
      1.2    THE ENERGY SECTOR IN CZECHOSLOVAKIA	   2
            1.2.1  OVERVIEW	   2
            1.2.2  PRIMARY ENERGY SOURCES IN CZECHOSLOVAKIA  	   5
            1.2.3  THE NATIONAL ENERGY STRATEGY	   9
            1.2.4  THE ROLE OF COALBED METHANE	   11

CHAPTER 2 - COALBED METHANE RESOURCES OF CZECHOSLOVAKIA	  13
      2.1    INTRODUCTION	  13
      2.2    COAL RESOURCES	  13
            2.2.1  THE UPPER SILESIAN COAL BASIN 	  14
            2.2.2  THE CENTRAL BOHEMIAN COAL BASINS	  23
            2.2.3  THE LOWER SILESIAN COAL BASIN	  28
            2.2.4  THE BOSKOVICE TROUGH  	  31
      2.3    COALBED METHANE RESOURCE ESTIMATES  	  32
            2.3.1  ESTIMATES ACCORDING TO SPECIFIC EMISSIONS	  32
            2.3.2  ESTIMATES ACCORDING TO ASSUMED GAS CONTENTS  	  35
            2.3.3  DISCUSSION OF COALBED METHANE RESOURCE ESTIMATES	  36
            2.3.4  RECOVERABILITY OF COALBED METHANE	  36

CHAPTER 3  COALBED METHANE RECOVERY AND UTILIZATION POTENTIAL IN
           CZECHOSLOVAKIA  	  39
      3.1    COALBED METHANE RECOVERY  	  39
            3.1.1  METHANE DRAINAGE METHODS  	  40
            3.1.2  OPTIONS FOR INCREASED RECOVERY	  40
      3.2    COALBED METHANE UTILIZATION	  41
            3.2.1  DIRECT INDUSTRIAL USE OPTIONS	  43
            3.2.2  POWER GENERATION OPTIONS  	  43
            3.2.3  VENTILATION AIR UTILIZATION OPTIONS 	  50
            3.2.4  GAS ENRICHMENT	   52
            3.2.5  GAS PIPELINE SYSTEMS IN CZECHOSLOVAKIA	   53
            3.2.6  FUEL SWITCHING WITH COALBED METHANE	      53
            3.2.7  UNDERGROUND GAS STORAGE 	' '  55

CHAPTER 4 - THE ROLE OF COALBED METHANE IN CZECHOSLOVAKIA'S ECONOMY         57
      4.1    OVERVIEW  	     ' ' '  57
      4.2    THE ENERGY ECONOMY IN TRANSITION	  57
      4.3    THE NATURAL GAS SUPPLY	'.'.'.'.'.'.'.'  58
            4.3.1  THE ROLE OF COALBED METHANE IN THE NATURAL GAS SUPPLY'.'.'  59

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CHAPTER 5 - CASE STUDIES  	     ....  61
      5.1    INTRODUCTION	        ...  61
      5.2    CSA CONCESSION CASE STUDY	  61
            5.2.1   PRESENT CONDITIONS	  61
            5.2.2   PROJECT TYPES	  62
      5.3    CSM CONCESSION CASE STUDY	  63
            5.3.1   PRESENT CONDITIONS	  63
            5.3.2   PROJECT TYPES	  63
      5.4    DARKOV CONCESSION CASE STUDY	  64
            5.4.1   PRESENT CONDITIONS	  64
            5.4.2   PROJECT TYPES	  64
      5.5    STAfUC CONCESSION CASE STUDY	  65
            5.5.1 PRESENT CONDITIONS	  65
            5.5.2 PROJECT TYPES 	  65
      5.6    EXPLORATION AND DEVELOPMENT OPPORTUNITIES	  66

CHAPTER 6  RECOMMENDATIONS FOR FURTHER ACTION	  67
      6.1    FOLLOW-UP TECHNICAL ASSISTANCE ACTIVITIES 	  67
            6.1.1   COALBED METHANE CLEARINGHOUSE  	  67
            6.1.2   TRAINING	  68
            6.1.3   METHANE RECOVERY TECHNICAL ASSESSMENT	  68
            6.1.4   STUDY OF POTENTIAL FOR METHANE USE IN
                  POWER GENERATION	  68
            6.1.5   GAS ENRICHMENT	  69
            6.1.6   STUDY OF POTENTIAL FOR INCREASING UNDERGROUND
                  GAS STORAGE 	  69
      6.2    FOLLOW-UP POLICY AND GOVERNMENT INITIATIVES	  69
            6.2.1   IMPACTS ASSESSMEK^	  69
            6.2.2   REGULATORY ASSESSMENTS  	  70
            6.2.3   MARKET AND INVESTMENT ASSESSMENT 	  70

REFERENCES CITED	  73

APPENDIX A - USE OF THE KRIGING METHOD FOR GRIDDING AND CONTOURING DATA  . . . A-1

APPENDIX B - RESOURCE ESTIMATION METHODOLOGIES	B-1

APPENDIX C - WATER DISPOSAL CONSIDERATIONS	C-1
                                     VIM

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                                 LIST OF FIGURES
Figure 1.       Fuel Mix of Selected Countries, 1989 	  3

Figure 2.       Energy Demand by Sector, 1390   	  4

Figure 3.       Domestic Sector Energy Sources, 1990	  4

Figure 4.       Industrial Sector Energy Sources, 1990	  4

Figure 5.       Transportation Sector Energy Sources, 1990  	  5

Figure 6.       Location of Major Coal  Basins, Oil Fields, and Gas Fields 	  6

Figure 7.       Tectonic Map of the Upper Silesian  Coal Basin (Ostrava-KarvinS
              Mining District),  Czechoslovakia	  16

Figure 8.       Stratigraphic Correlation of Coal Bearing Formations, Czechoslovakia  	  17

Figure 9.       Location of Mines and Mining Concessions, Upper Silesian Coal Basin
              (Ostrava-Karvin^ Mining District), Czechoslovakia	  20

Figure 10.     Contour Map of Methane  Liberated  During Mining, Upper Silesian Coal Basin
              (Ostrava-KarvinS Mining District), Czechoslovakia	  24

Figure 11.     Tectonic Map of the Plzen Basin, Czechoslovakia  	  26

Figure 12.     Location of Major Mine Concessions, Kladno District,  Czechoslovakia  	  27

Figure 13.     Geologic Map of the Trutnov Coal District, Czechoslovakia	  29

Figure 14.     Gas Distribution  Network  (Schematic), Power Plants,  Gas and Gas Storage Fields,
              and Major Gas Consuming Industries in the Ostrava-Karvinci Region	  45

Figure 15.     Schematic Drawing of Coalbed Methane and Coke Oven Gas Pipeline Systems,
              Ostrava-KarvinS  Region	  46

Figure 16.     Gas Distribution  Network  and Approximate Location of Major Coal-Fired Power
              Stations in Czechoslovakia	  48
                                             IX

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                                 LIST OF TABLES
Table 1.       Coal Consumption and Production '<™ Czechoslovakia	  7

Table 2.       Oil Production and Consumption in Czechoslovakia 	  8

Table 3.       Natural Gas Production and Consumption in Czechoslovakia	   10

Table 4.       Summary of Coal Basin Characteristics, Czechoslovakia, 1990	   14

Table 5.       Hard Coal Resources of the Ostrava-Karvina" District,  1990  	   18

Table 6.       Key Characteristics of Mine Concessions in the Ostrava-Karvina" District  	   21

Table 7.       1990 Methane Emission Data from Mine Concessions of the Ostrava-Karvina'
              District  	   22

Table 8.       Hard Coal Production and Resources of the Central Bohemian Coal Basins ....   25

Table 9.       Hard Coal Production and Resources of the Trutnov District	   30

Table 10.      Methane and Carbon Dioxide Emissions From Active Coal Mines of the
              Trutnov District  	   30

Table 11.      Methane Emission Data From  Mine Concessions of the Ostrava-Karvina" District    33

Table 12.      Estimated Methane Resources of the Ostrava-Karvinei District	   34

Table 13.      Proposed Fine Structure for Methane Emissions  	   40

Table 14.      Methane Recovery and Utilization  Strategies  	   42

Table 15.      Largest Gas Fuel Consumers in the Ostrava-Karvina" Region in 1987  	   44

Table 16.      Energy Consumption and Production of Power Plants  in the Ostrava-
              Karvina" Region	   47

Table B-1.     Comparison of Resource Estimates From Selected Carboniferous Coal Basins  . .  B-2

Table C-1.     Quantity and Quality of Water Produced From OKR Mine Concessions	C-2

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                                  CHAPTER  1


       COALBED  METHANE IN CZECHOSLOVAKIA'S

                            ENERGY  ECONOMY


1.1   INTRODUCTION

Large amounts of methane are released to the atmosphere from coal mines in  Czechoslovakia.
Czechoslovakia is among the top ten nations emitting methane from coal mining; about 400 million
cubic meters of methane are emitted annually from the mines of the Ostrava-Karvina" Mining District
alone.

These methane emissions represent the loss of a valuable resource and have a deleterious effect on
the earth's atmosphere. Methane has a number of atmospheric impacts that represent threats to the
environment. It is a potent greenhouse gas, second  in importance only to carbon dioxide. In addition,
it tends to increase tropospheric ozone and smog formation, and may also contribute to stratospheric
ozone depletion (Kruger, 1991).

Inefficient use of energy, declining resources of hard coal, the need to reduce dependence on low-
quality brown coal and lignite,  and increasing dependency on imported oil and gas have created a
critical need for new indigenous energy sources in Czechoslovakia. In addition, because they are faced
with  severe environmental  problems from the mining and burning of coal, Czechoslovakian officials
want to reduce dependence on coal and use more natural gas, nearly all of which is currently imported
from the former Soviet Union. This would clearly help them meet environmental goals, but the rising
cost  of imported natural  gas will severely constrain this endeavor.

Czechoslovakia faces other serious economic challenges. During the early 1980's, the nation was able
to reduce foreign debt so that it is now relatively low compared  with that of Poland or Hungary. In
doing so, however, the country went without vital acquisitions of Western technology. This technology
is now necessary to help Czechoslovakia  compete  with more advanced economies, and a deficit of
more than $550 million U.S. has been incurred with Western countries since  1990. Meanwhile, the
country can  no  longer rely on inexpensive energy from the former Soviet Union,  because of the
dissolution of the Council of Mutual Economic Assistance (CMEA). Czechoslovakia, which is heavily
dependent on imported energy, has thus been abruptly forced to pay market prices for oil and gas.

For the reasons suggested above,  it appears that increased development of Czechoslovakia's coalbed
methane resource would address environmental  concerns, while providing additional options for an
affordable natural gas supply.

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1.2   THE ENERGY SECTOR IN CZECHOSLOVAKIA

1.2.1  OVERVIEW

                         Energy Consumption and  Production

Coal provides about 56 percent of Czechoslovakia's primary energy demand (Figure 1), mostly from
domestic production.  Czechoslovakia is more dependent on  brown coal  and lignite than any other
nation in  Europe; it accounts for approximately 63 percent of all coal consumed in Czechoslovakia.
Brown coal is widely recognized an undesirable fuel due to its low heating value and high content of
sulfur and ash. However, its abundance has made it the primary fuel source for industrial and power
generation needs. At the present rate of extraction, reserves  of brown  coal and  lignite are being
depleted  by 3 percent per year.  Some authorities  expect them to be exhausted before  2010 (EIU,
1991),  although others predict that Czechoslovakia will be able to continue producing brown coal and
lignite until 2040 (Couch et al, 1990).

Production of hard coal has been steadily decreasing during the past decade. As the planned closure
of uneconomic  mines proceeds during the next few  years, production  is  expected  to decline
dramatically. In fact, the government plans to reduce hard coal production by up to 40 percent by the
year 2000.

Consumption of conventional natural gas has been increasing in response to declining coal  production,
but known domestic reserves of oil and natural gas are small, as discussed in Section 1.2.2. Annual
domestic oil production accounts for less than 1 percent of the amount consumed in Czechoslovakia;
gas  production,  less  than 7 percent.  The  remaining oil and gas is imported, mostly from  the
Commonwealth of Independent States (CIS; formerly the Soviet Union). The country's main oil supply,
which comes from the CIS, has been cut by nearly half since early 1990. This reduction in supply has
caused the cost of oil- and gas-based energy to double. Gas supplies are also unsteady,  and  energy
costs are continuing to rise dramatically (Daviss, 1991).

As of 1989, nuclear power accounted for 28 percent of all electricity generation in Czechoslovakia
(EIU, 1991). There are eight 440 MW nuclear reactors in Czechoslovakia, two of which are currently
shut down and may be decommissioned in 1995. Four additional plants are under construction. There
is also a reactor which has been permanently shut down since 1979 because of accidents. Long term
problems are associated with the storage and disposal of spent fuel from this reactor, and from nuclear
units presently in operation or under construction. There is also some concern about the adequacy of
monitoring and safety management.


                                Sectoral Energy Demand

Czechoslovakia's final energy demand in 1990 was 2.058 exajoules1  (EJ) (UNECE,  1991  a). Sectoral
end use is divided into three categories: Industry (including  manufacturing, mining, and construction),
Domestic (which includes households, agriculture and commercial enterprises) and Transportation (rail,
road, water, and air).  In 1990, the domestic sector used 0.821 EJ  and industrial sector  used 1.104
EJ. Together they accounted for 94 percent of the energy consumed in Czechoslovakia (Figure 2). The
   1 1 EJ = 0.948 quadrillion  BTU = 0.948 X 1015 BTU

                                            2

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CO
         FIGURE 1.  FUEL MIX OF SELECTED COUNTRIES, 1989
            POLAND
       HARD COAL 67%
   CZECHOSLOVAKIA
          GAS 13%
                                OIL 21%
                       LIGNITE
                       OR BROWN
                       COAL 11%
            GAS 8%  OIL 12%
LIGNITE OR
BROWN COAL"
  35%
                  HARD COAL
                    21%
                   HYDRO 2%

                   NUCLEAR
                    8%
      HUNGARY
            GAS 33%
                                                        OIL 30%
                  HARD
                  COAL
                   6%
                  HYDRO 2%

                  NUCLEAR
                  11%
              LIGNITE OR
            BROWN COAL 18%
           GERMANY
              GAS 16%
     OIL 33%
                      HARD
                      COAL 17%
                       HYDRO 2%

                       IUCLEAR
                       10%

                    LIGNITE OR
                  BROWN COAL 22%
         JAPAN
                              OIL 58%
            GAS 10%
                   HYDRO
                   5%
                   UCLEAR
                  10%
   UNITED  STATES
                                                          GAS 24%
OIL 42%
                                          HARD COAL
                                            21%
  HYDRO
  4%
 NUCLEAR
  7%
LIGNITE OR BROWN
 COAL 2%
         Source: U.S. DOE EIA, 1991; UNECE, 1991c

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transportation sector accounted for the remaining 7
percent of energy consumed  (0.133  EJ). The  large
share of energy consumed by the industrial sector
reflects the  national emphasis placed  on heavy
industry, coupled with low energy efficiency.
As  shown in  Figure  3,  about 41  percent of the
domestic sector's energy in 1990 was derived directly
from coal and coke. Indirect use of coal via electricity
and steam generation accounted for 25 percent  of
domestic  energy demand, and oil and gas  fuels
comprised  the  remaining  34  percent.  The United
Nations Economic  Commission for Europe  (UNECE,
1991 a)  forecasts  that  through  2010  domestic
consumption of energy via direct combustion of coal
and coke will  decrease relative to  consumption of
electricity,  steam, oil, and gas. The  UNECE forecast
also assumes that nuclear energy will contribute more
to electricity generation than it does at present.
                                                       FIGURE 2. ENERGY DEMAND BY
                                                               SECTOR,  1990
                                                                  HOUSEHOLD AND
                                                                     COMMERCIAL 40%
                                                      INDUSTRY 53%
                                                                          TRANSPORTATION
                                                                             7%
                                                                           Sourc*: U.N.. 1991
                                                        FIGURE 3. DOMESTIC SECTOR
                                                          ENERGY SOURCES, 1990
                                                        OIL AND
                                                        GAS 34%
                                                                            ELECTRICITY
                                                                            AND STEAM
                                                                               26%
                                                         Souroci U.N, 1891
                                                                              COAL AND
                                                                               COKE 41%
Most of the energy used by the industrial sector is
also derived directly or indirectly from coal, as shown
in Figure 4. In 1988, about 53 percent of the energy
consumed by industries  was derived indirectly from
coal in the form of electricity and steam; 19 percent
was generated directly from coal and coke, mostly for
steel  production.  The remaining 28  percent  was
derived  from  gas and  oil, most of  which  was
imported. According to a UNECE forecast, by 2010,
direct consumption of coal will  account for only 12
percent of the total energy consumed by the industrial
sector. The  UNECE forecasts that oil and  gas will
account for 35  percent  of the  energy  consumed by
the industrial sector; gas comprises by far the largest
portion of that  percentage. In  order for industry  to
shift to  gas,  however,  it  will be  necessary  for
Czechoslovakia  to  either  increase  domestic gas
production  or increase  imported natural  gas.   In
addition, expenditures will be necessary in order for
industries to convert existing facilities for natural gas
use,  and   for building pipelines to transport gas  to
industrial facilities.

The transportation sector (Figure 5) is fueled primarily
by oil (82 percent), nearly all of which is imported;
natural gas contributes 1 percent to the fuel mix for a total oil and gas share of 83 percent. Thirteen
percent of the energy used by the transportation sector is generated indirectly from coal as steam and
                                                        FIGURE 4. INDUSTRIAL SECTOR
                                                           ENERGY SOURCES, 1990
                                                                             ELECTRICITY
                                                                             AND STEAM
                                                                                 53%
                                                        OIL AND
                                                        GAS 28%
                                                          Source: UK, W91
                                                                               COAL AND
                                                                               COKE 19%

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(UNECE,  1991 a). Czechoslovakia must continue to
import large amounts of oil to meet the demands of
the transportation sector.
FIGURE 5. TRANSPORTATION SECTOR
      ENERGY SOURCES, 1990
                                                    OIL AND
                                                    GAS 83% /
                        X ELECTRICITY
                           AND STEAM
                             13%

                            COAL AND
                             COKE 4%
                                                       Source: U.KL, 1881
1.2.2   PRIMARY  ENERGY  SOURCES  IN
CZECHOSLOVAKIA

          Coal: The Dominant  Fuel

Czechoslovakia relies heavily on coal for its primary
energy  production. As shown  in  Figure  1,  coal
accounted for over 55 percent of Czechoslovakia's
fuel mix in 1989. Brown coal and lignite represented
35 percent of the fuel mix, and production of these
lower  ranked coals exceeded  hard  coal  production  by about  four times.  The  coalfields  of
Czechoslovakia are indicated in Figure 6.

More than 83 million tons2 of brown coal and lignite were produced in Czechoslovakia in 1990 (Table
1). Ninety-three percent of this was brown  coal produced in the North  Bohemia Brown Coal Basin,
located in the northwestern part of  the country near the German border  (Figure 6);  most of this coal
is produced by open cast methods. The remainder was lignite produced near the Czech-Slovak border
southeast of Brno, and in Slovakia west of Banska Bystrice; most of the lignite in these areas is mined
underground. The brown coal basin east of Ceske BudSjovice has not been exploited, and the extent
of its resources is not known.

As shown in Table  1, brown coal and lignite consumption has declined steadily in the past five years.
The overall view from within Czechoslovakia is that brown coal and lignite  production and consumption
will continue  to decrease largely as a result of environmental pressure, but also as  a result of falling
demand brought about by a decrease in heavy industry, as well as increasing prices. However, the rate
at which demand will continue to decline depends on  whether other forms of energy will be available
to meet Czechoslovakia's needs.

Hard coal is produced from the Ostrava-Karvina Mining District (OKR) of the Upper Silesian Coal Basin;
the Central Bohemian Coal Basins,  which contain the Kladno District west of Prague, and the Plzen
District; the Trutnov District of the Lower Silesian Coal Basin; and the Boskovice Trough west of Brno
(Figure 6).  The Ostrava-Karvina  District has the highest output, producing 19.7 million tons (90
percentof Czechoslovakia's  total  hard coal production) in 1990. Total hard  coal  production in
Czechoslovakia in 1990 was 21.9 million tons.

As shown in Table 1, hard coal consumption has declined in recent years,  largely due to lower demand
for coke as a result of changes in the metallurgical industry. Hard coal production has declined steadily
in the past decade. Czechoslovakia  exports coking coal, primarily to Austria,  Germany, and Hungary.
Until recently, the  only coal it imported was non-coking  coal (from Poland  and  the CIS). In 1991,
however, both coking and non-coking coal were imported.
   ^Throughout this report, "tons" refers to S.I. (metric) tons. The term "million" (10a) is used, rather than the
S.I. prefix "mega-", because it is familiar terminology in the international mining  and energy industry.

-------
                                    FIGURE 6.  LOCATION OF MAJOR COAL BASINS, OIL
                                    FIELDS, AND GAS FIELDS, CZECHOSLOVAKIA
                                                    UPPER SILESIAN COAL BASIN (OKR)
CENTRAL
BOHEMIAN
COAL BASINS
                 LOWER SILESIAN
                  COAL BASIN
CZECH REPUBLIC
                                                                t&
                                                            SLOVAK REPUBLIC
HARD COAL BASIN

BROWN COAL OR
LIGNITE BASIN
GAS FIELD

OIL FIELD
CITY
                                   EXPLANATION
                                   	CZECH/SLOVAK REPUBLIC BORDER
n
                                    SCALE
                                 0   50  100 KM
                                 SOURCE: INTERNATIONAL PETROLEUM ENCYCLOPEDIA, 1991
                                 & EHRENBERGER ET AL, 1985

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   TABLE 1. COAL  PRODUCTION AND CONSUMPTION IN CZECHOSLOVAKIA
                                   (MILLION TONS)

YEAR
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
(Estimated)
BROWN COAL AND LIGNITE
PRODUCTION CONSUMPTION
96.0
96.4
99.0
100.5
102.9
100.4
99.9
97.0
98.4
92.3
83.7
85.2
93.8
94.1
96.0
99.9
99.6
97.5
99.2
95.8
95.2
91.9
82.5
82.5
HARD COAL
PRODUCTION CONSUMPTION
28.4
27.5
27.5
26.9
26.4
26.2
25.7
25.7
25.5
25.1
21.9
21.0
29.8
28.9
29.6
29.0
28.3
28.2
28.1
28.1
28.1
27.4
25.3
23.7
Sources: U.S. DOE Energy Information Administration (1982-1991)
United Nations (1982-1990)
Ministry for Economic Policy and Development of the Czech Republic (MEPDCR) (1991)
Couch et al (1990)
Czechoslovakian Federal Ministry of Economy (1991)
                                          OH

Czechoslovakia produces only about 442 tons3 of oil per day, mostly from the Vienna Basin southeast
of Brno (Figure 6).  Reserves  are  estimated at about 2.6 million  tons  (International  Petroleum
Encyclopedia, 1991).

Although production has been fairly steady in recent years, it represents only about 1 percent of the
oil consumed in Czechoslovakia. The sharp decrease in oil consumption in  1990 (Table 2) does not
reflect a decrease in demand, but rather a reduction in  supply from the CIS.  Czechoslovakia is now
seeking new sources of oil, and deliveries of 100,000 tons per month from the Middle East started
along the Adria pipeline through Yugoslavia in January 1991.
   3 1 ton of oil = 6.780 barrels

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                 TABLE 2. OIL PRODUCTION AND CONSUMPTION IN
                          CZECHOSLOVAKIA (THOUSAND4 TONS)
YEAR
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
OIL PRODUCTION
108
88
88
93
95
153
211
158
153
162
140
OIL CONSUMPTION
20,800
20,300
17,900
20,300
18,600
18,400
18,000
17,900
17,800
17,800
13,500
Sources: Gustavson Associates (1990)
U.S. DOE Energy Information Administration (1982-1991)
Czechoslovakian Federal Ministry of Economy (1991)
In September,  1991, the Ministry for Economic  Policy and Development of the Czech Republic
(MEPDCR), the Ministry of Economy of the Slovak  Republic, and the Slovak Geological Office issued
an invitation to companies, both foreign and domestic, to participate in the first open bidding round
for petroleum  exploration  and  production in the Bohemian Massif and West Carpathians, the area
located in and around the Vienna Basin.  The resulting exploration should help increase domestic oil
and gas production, but Czechoslovakia is expected to remain heavily dependent on imported oil.
                                       Natural Gas

Natural gas production in Czechoslovakia was negligible until about 1955. Gas production is primarily
located in the Vienna Basin (southeast of Brno), with lesser amounts produced in the easternmost part
of the country, and near Ostrava.

Although natural gas production has increased during the past decade,  Czechoslovakian fields are
producing at maximum capacity (696 million cubic meters in 1990) and proven conventional reserves
   4 The term "thousand"  (103) is used throughout this report, rather than the S.I. prefix "kilo-", because it is
familiar terminology in the international energy and mining industry
                                             8

-------
are estimated to be only 14 billion cubic meters6 (UNECE, 1991b), equal to the present annual gas
demand (Table 3). Therefore, Czechoslovakia will have to continue importing most of the natural gas
it consumes. In 1990, 95 percent of the conventional gas used was imported from the CIS, and it is
expected that this percentage will  increase as brown coal consumption  is reduced  and  hard coal
production declines. The Deputy Minister of Fuel and Energy has prepared energy forecasts through
the year 2005.  Under the  most favorable  scenario,  which assumes the  success of the  country's
economic  reform  program,  Czechoslovakia  is  projected to  import  21   billion  cubic meters  of
conventional gas by 2005 (Platts Oilgram News,  1991).

The  heavy  dependence  on  imported  natural  gas has   adverse  economic  implications  for
Czechoslovakia.The CIS, sole supplier of natural  gas to Czechoslovakia, was charging $120 US per
thousand cubic meters in November 1991, and they are continuing to raise gas prices. Moreover, the
CIS can be an unreliable gas exporter, as exemplified in the CIS' unexpected  reneging on a contract
to  deliver  gas to Poland. This  incident, which took place January  1992, forced Polish  industries
dependent on natural  gas  to sharply curtail  consumption and output until  the contract could be
renegotiated. Unlike Poland,  however, the  main gas pipeline coming from the CIS to Central and
Western Europe passes through  Czechoslovakia so  it is unlikely that such an abrupt halt  in gas
deliveries to Czechoslovakia could occur.  Still, the long-term  reliability of gas deliveries from the CIS
to Czechoslovakia  is uncertain,  and Czechoslovakia is looking for other potential gas suppliers, such
as  Algeria, Norway, and the Netherlands (Oil and Gas Journal, 1991 a).  Afghanistan has recently
approached Czechoslovakia offering to sell them  gas via a pipeline to the gas grid of the CIS.

Another alternative gas source being examined by Czechoslovakia  is its indigenous coalbed methane
resources.  Development of these resources could be a significant boost to domestic gas production,
as  discussed  in later chapters.
 1.2.3  THE NATIONAL ENERGY STRATEGY

 Czechoslovakia's energy economy is in the midst of a complex transition. The 1991  decision of the
 former Soviet Union to demand payment for fuel at  world  prices and in hard currency has caused
 energy costs per unit of gross national product to increase sharply. Improvements in energy efficiency
 will help relieve growing energy shortages,  but it is also necessary to have a comprehensive energy
 strategy, and to develop the nation's most attractive domestic resources.


 Since its inception in 1990, the current government has been working on energy sector management
 and reform. The highlights of the government strategy involve developing market economy structures,
 adjusting  energy  prices, emphasizing clean-burning,  efficient electric power  technologies, and
 expanding  nuclear power (UNECE, 1991a).

 Implementing market-oriented energy policies will require that energy production, sales, and trade take
 place within self-sustaining  enterprises. At  present, the  government still plays  a major role in
 enterprises involved in producing  and distributing energy.  It is anticipated that privatization of these
 enterprises will eventually take place, but it  is unlikely that they will be privatized within the next few
 years.
   5 The term "billion" is used throughout this report,  rather than the S.I. prefix giga-, because it is common
terminology in the international energy and mining industry. 1  billion cubic meters = 35.3 billion cubic feet =
0.035 trillion cubic feet.

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          TABLE 3. NATURAL GAS PRODUCTION AND CONSUMPTION IN
                    CZECHOSLOVAKIA (MILLION CUBIC METERS)
YEAR
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
GAS
PRODUCTION
341
392
429
378
505
478
699
708
730
750
696
GAS
CONSUMPTION
9,010
8,940
9,460
9,580
10,070
11,290
12,080
12,570
11,820
12,660
13,960
Sources: Gustavson Associates (1990)
U.S. DOE Energy Information Administration (1992-1991)
Czechoslovakian Federal Ministry of Economy (1991)
There is broad agreement that the historical price structure of Czechoslovakian energy resources has
been low in comparison to other industrialized  nations and that this structure has resulted in significant
internal price distortions. Major pricing reform is therefore underway in each of the energy sectors of
the country. In the long run, tradeable energy resources will be priced at comparable international levels
(Huddleston, 1991). Pricing reform is important not only within individual energy sectors, but also in
its impacts on industrial output, employment, trade, government finance, and environmental conditions.

One aspect of Czechoslovakia's plan to emphasize clean-burning, efficient electric power technologies
is  using less brown coal and lignite. In addition,  research on using gasification of coal for power
generation is underway, and Czech and Slovak utilities have been attempting to secure loans to install
flue gas desulfurization and electrostatic precipitator technologies in coal-fired power plants (Eastern
European Energy Report, 1991). Scrubbers  for removal of sulfur dioxide  and  nitrogen oxides are
virtually  non-existent on  the  country's power plants,  and it  is  estimated  that  two-thirds of
Czechoslovakia's  power  plants will  have to be  refurbished or  retrofitted with  pollution  control
equipment.

According to the UNECE (1991 a), for the next 15-20 years, one of the main targets of Czechoslovak
energy policy is a vast international cooperative effort to improve existing nuclear technologies  and
develop new ones, in conformity with international agreements on safety standards for the operation
of  plants and disposal of wastes. The objective is a capacity of about  12 GW by 2005, more than a
threefold increase from present levels. However, construction of new nuclear power stations has been
                                             10

-------
delayed by planning and  organization difficulties, and rising costs connected with increased safety
requirements (EIU, 1991).

Czechoslovakia's energy  program also calls for an increase in natural gas consumption, particularly
in the residential and commercial sectors.
1.2.4  THE ROLE OF COALBED  METHANE

In the future, Czechoslovakia seeks to rely less upon domestic coal and more upon other, cleaner-
burning energy sources to meet its growing energy needs. Accomplishing this goal without developing
new  domestic gas  resources will  be  very difficult, however, because Czechoslovakia's  domestic
resources of oil and conventional natural gas are much too small to meet present, let alone increased,
demand; and, because it is difficult for Czechoslovakia to pay for the amount of fuel it  currently
imports, let alone the increased amount that will be necessary as coal  production and use declines.
Thus, Czechoslovakia would benefit from the development of an affordable and environmentally sound
domestic energy source, such as coalbed  methane.

Coalbed methane  production should  help Czechoslovakia achieve  its environmental  goals in  an
economically sustainable manner. Substantial reserves of coalbed methane are projected to lie in and
around  the hard coal mines of Czechoslovakia. In addition, more than 520  million cubic meters of
methane are liberated by mining each year, three-fourths of which is wasted through emissions to the
atmosphere. Good opportunities exist for increased recovery and utilization of methane from coal mines
in Czechoslovakia, as well as development of the resource independent of mining. A comprehensive
program of mine methane drainage and utilization, combined with methane development in areas lying
beyond the mines, could supply enough energy to  significantly reduce the need for imported natural
gas-even with the assumption that demand for natural gas will rise sharply in the  future.

Unutilized, coalbed methane is an environmental liability acting as a potent greenhouse gas. Utilized,
it is a remarkably clean fuel. The burning  of methane emits virtually no  sulfur or ash, and only about
32 percent of the nitrogen  oxides, 45 percent  of the carbon dioxide, and 43 percent of the volatile
compounds emitted by coal burning (Oil and Gas Journal, 1991b;  U.S. EPA, 1986). Coalbed methane
can be substituted for hard coal  in local power plants through cofiring or direct combustion in existing
boilers, reducing foreign imports of energy  coal, and  reducing regional imports of increasingly expensive
electricity. In instances where coalbed methane would be used to displace coal,  coke  oven gas, or
town gas, it would improve the regional, as well as global, air quality.

In addition to national economic benefits of reduced imports of natural gas, coalbed methane drainage
and utilization improves profitability of coal mines. With aggressive methane drainage, less money
would be spent on installation and maintenance of large ventilation fans and  other safety measures,
and a waste product would be converted  to a useable and marketable energy source (Dixon, 1987).
Methane drainage could also increase  mine productivity by reducing the down time  associated with
high  methane levels.  Coalbed methane drainage also reduces the potential for methane explosions,
improving safety conditions for  miners.
                                             11

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                                  CHAPTER 2


                 COALBED  METHANE  RESOURCES

                          OF CZECHOSLOVAKIA


2.1   INTRODUCTION

Coalbed methane has traditionally been viewed as a mine safety hazard, requiring dilution to safe non-
explosive levels. For this reason, most coal mines throughout the world simply vent large amounts of
methane  in low concentrations to the atmosphere.  In many mines, however, ventilation alone is
insufficient to maintain safe mining conditions, and additional degasification techniques, including in-
seam  drilling, have been  developed. Many of Czechoslovakia's  coal mines have high methane
concentrations, and degasification techniques have been used in these mines for many years to ensure
safety.

An estimate  of the magnitude of the coalbed methane resource in Czechoslovakia is necessary to
evaluate its development potential. Because coalbed methane development has not begun aggressively,
however, much of the  data required to develop a detailed resource assessment is not yet available.  For
example, there is currently no data available on actual measured gas contents and other characteristics
of Czechoslovakian coals that would affect both the magnitude of the resource and its recoverability.
Nevertheless, assumptions based on similar coals have allowed reasonable preliminary estimates to be
made.

The following sections describe the available data  on Czechoslovakia's coal  resources, present
estimates of coalbed  methane resources, and discuss  some of the key factors  related to  the
recoverability of the resource.  Most of the data on which this discussion is based was provided by
MEPDCR, and by mining  enterprises that have collected  data  for purposes  of producing coal and
maintaining mine safety.

Until more detailed data is available, these estimates should  be considered preliminary. Mining
experience in Czechoslovakia and the available data  indicate that the coalbed methane resource is
large.  Given the lack of key types of information, however, it is clear that more detailed data collection
activities are warranted to better assess Czechoslovakia's coalbed methane resource and identify the
most promising production locations.
2.2  COAL RESOURCES

As outlined in Chapter 1, hard coal is produced from four basins in Czechoslovakia, the locations of
which are shown in Figure 6.  Characteristics of the basins are summarized in Table 4. As the table
shows, the Ostrava-KarvinS District of the Upper Silesian Coal Basin (USCB) is the largest hard coal


                                           13

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producing region in Czechoslovakia, and most of the mining activity is concentrated in this basin. A
more detailed description of each basin is provided below.
2.2.1  THE UPPER SILESIAN COAL BASIN (OSTRAVA-KARVINA DISTRICT)
                                      Introduction

The Czechoslovakian  portion of the Upper Silesian Coal Basin, which extends into Poland, is more
commonly referred to as the Ostrava-Karvina District (OKR6); its location is shown in Figure 6. Coal
mining began in the OKR in 1782;  workings originating as early as the 1840's are still being mined.
Presently, coal is produced from 14 mine concessions (15 produced coal in 1991, but the Sverma mine
closed in January 1992).

            TABLE 4.  SUMMARY OF COAL BASIN CHARACTERISTICS,
                              CZECHOSLOVAKIA (1990)
CHARACTERISTIC
Basin Area (km2)
Documented
Coal Resources
(Million Tons)
Number of Active
Mine Concessions
1990 Coal
Production
(Thousand Tons)
Methane Liberated,
1990* (Million m3)
OSTRAVA-
KARVINA
DISTRICT
OF USCB
1,200
11,797
15
19,735
524.1
CENTRAL BOHEMIAN
BASINS
KLADNO
100
443
2
1,308
N/A
PLZEN
70
57
2
255
N/A
TRUTNOV
DISTRICT
OF
LSCB
50
314
2
459
0.8*
BOSKO-
VICE
TROUGH
20
13
1
140
N/A
Sources: MEPDCR(1991)
DPB Paskov (1991)
* Stated amount of methane liberated in Trutnov District may represent a year other than 1 990
   8 The Czechoslovakian abbreviation "OKR" is used in this report because use of the literal English abbreviation,
OKD, would cause it to be confused with OKD, a.s., the enterprise which controls all but one of the mine
concessions in the Ostrava-Karvina District.
                                            14

-------
Mining depths in the OKR range from 480 to 1100 meters (m). Upper Carboniferous formations contain
the 3,800 m thick productive series,  which includes 255 coal seams,  about 120 of which  are
considered workable  (Dopita  and  Havlena,  1972).  The total  thickness  of the  coal  seams is
approximately 150 m.
                                     Geologic Setting

Predominant tectonic characteristics of the OKR are shown in Figure 7. In the west-central part of the
district, two principal structural features (MichSlkovice and Orlova") form  a boundary between two
distinct tectonic styles. The MichaMchovice and OrlovS features are in some places manifested as thrust
faults, and  in  other places manifested as sharp synclinal folds. West of these principal fold/fault
features, structural features consist primarily of south-southwest/north-northeast trending folds, with
east-west (and southeast-northwest) trending normal faults prevailing  over north-south trending
faults.Thrust faults are also  present. In contrast, east of the  MichSlkovice  and OrlovS fold/fault
features, structural features consist of north-south trending faults roughly equal in number to east-west
(and east-southeast/west-northwest) faults. In this area, major grabens are present and thrust faults
are absent.

The general stratigraphy of the basin is  shown in Figure 8.  The  oldest coal-bearing formation  is the
Ostrava Formation (Namurian A and B). It is characterized by a predominance of fine-grained siltstones,
sandstones, and mudstones interbedded with 168 coal seams, each averaging 73 cm thick. All four
members of the Ostrava Formation are coal bearing, but the oldest members (Petfkovice and HruSov)
tend  to be  most productive.  The formation is believed to  have been deposited in a coastal plain
environment (Dopita and Havlena, 1972).

The KarvinS Formation (Namurian B and C, and Westphalian A) overlies the Ostrava Formation. It is
characterized by a predominance of coarse-grained sandstones and conglomerates interbedded with
87 coal seams averaging 120 cm thick. The formation was deposited in a terrestrial (rivers and  lakes)
environment.

While coalbeds in both the Ostrava and Karvina" Formations are currently mined, present and planned
mining activity  emphasizes KarvinS coalbeds. All three members  of the Karvina" Formation are mined,
but the Saddle  Seams Member is especially productive. According to  Dopita (1988), during the late
1980's more than 36 percent of all coal  mined in the  OKR was from the Saddle Seams Member, and
this percentage is forecast to increase in the future.

On average, OKR coal contains 0.6 percent sulfur, 15 percent ash, 3.5 percent moisture, 23 percent
volatile matter, and has a heating value of  25.5 MJ/kg. OKR coal rank ranges from high volatile
bituminous to anthracite; approximately 73 percent of the coal is of coking quality.


                                      Coal Resources

Total coal resources in the OKR are estimated at 16 billion tons, contained in 64 deposits. As of 1991,
fifteen of  the  deposits were  considered  "developed" (i.e., with active mines  or mines  under
construction); the remaining 49 are "undeveloped" (i.e., have never been or are not currently being
mined). As shown in Table 5, nearly three-fourths of the coal resources in the basin are documented
(identified), and more than 40 percent are classified as mineable balance resources (the term "balance"
represents coal thickness, quality and depth criteria defined in Table 5).
                                             15

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                                           FIGURE  7.   TECTONIC  MAP  OF THE   UPPER
                                           SILESIAN COAL  BASIN (OSTRAVA-K A R VIN A
                                           MINING  DISTRICT), CZECHOSLOVAKIA
                                                BOUNDARY OF MINING
                                                CONCESSION AREAS
BOUNDARY OF EXPLORATION FIELDS
(NO ACTIVE MINING)
  MICHALKOVICE
  STRUCTURE
                                           ORLOVA   1
                                          STRUCTURE A
                                                 NORMAL FAULTS, DASHED WHERE INFERRED. HACHURES
                                                 ON DOWNTHROWN SIDE
                                                 THRUST FAULTS, SAWTEETH ON UPPER PLATE

                                             . 	 AXIS OF SYNCLINE

                                             •    CITY
                                              16

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FIGURE 8. STRATIGRAPHIC CORRELATION OF
COAL BEARING FORMATIONS, CZECHOSLOVAKIA
AGE
STRATIGRAPHIC
CLASSIFICATION
INTERNATIONAL
CARBONIFEROUS
/
/
UPPER
LOWER
UPPER
REGIONAL
STEPHANIAN
WESTPHALIAN
NAMURIAN
Z
<
HJJ
0)
>
TOURNAISIAN
FAMENNIAN
O
m
<
D
O
00
<
O
m
<





CENTRAL BOHEMIAN
COAL BASINS
(KLADNO AND PLZEN IAS1NS)
LINE
(UPPER
RED) FM.

SLANY
(UPPER GREY)
FORMATION
TYNEC
(LOWER RED)
FORMATION
PLZEN-KLADNO
(LOWER GREY) FORMATION
KLOBUKY HORIZON
ZDETlN HORIZON

KAMENNY MOST
MEMBER
KOUNOV MEMBER
LEDCE MEMBER
HREDLE MEMBER
MSEC MEMBER
JELENICE
MEMBER

NYRANY
MEMBER

cc
UJ
o_
0.
RADNICE =
MEMBER
tr
UJ
|
HIATUS

KOUNOV
COAL GROUP
MELNlK
COAL GROUP

NYftANY GROUP
OF COAL SEAMS
MIROSOV
HORIZON

LUBNA GROUP
OF
COAL SEAMS
RADNICE
COAL GROUP
PLZEN
COAL GROUP

SOURCE: V. HOLUB (NO DATE)

LOWER SILESIAN COAL BASIN
(TRUTNOV DISTRICT)
CHVAJ.ES
FORM-
ATION
VERNEftOVICE
MEMBER

ODOLOV FORMATION
ZACLER FORMATION
JIVKA
MEMBER
SVATONOVICE
MEMBER
PETROViCE
PRKENNY
DUL-ZDARKY
MEMBER
LAMPERTICE
MEMBER
,' "

VERNEROVICE
LIMESTONE
HORIZON

RADVANICE
GROUP OF
COAL SEAMS
SVATONOVICE
GROUP OF
COAL SEAMS
MEMBER
VILEMlNA
COAL GROUP
U BUKU
COAL GROUP
SVERMA MINE
GROUP OF
COAL SEAMS
- -' : x

BtAZKtiV FORMATION

UPPER SILESIAN COAL BASIN
(OSTRAVA-KARVINA DISTRICT)

DOUBRAVA MEMBER
KARVINA
SUCHA MEMBER
FORMATION
SADDLE-SEAMS
MEMBER

PORUBA MEMBER
GSTHAVA JAKLOVEC MEMBER
fORMATION HRUSOV MEMBER
PETftKOVICE MEMBER
EQUIVALENT OF
MORAVICE + HRADEK-KYJOVICE
FORMATION
HADY-ftlCKY AND KftTINY
LIMESTONE
17

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TABLE 5. HARD COAL RESOURCES OF THE OSTRAVA-KARVINA DISTRICT, 1990
                                  (IN MILLION TONS)
  DOCUMENTED7 (IDENTIFIED) RESOURCES
         IN DEVELOPED DEPOSITS (ACTIVE MINES)
         Balance Reserves (seams more than 40 cm thick, ash less than 60%, depth above 1200 m)
                Mineable                                                       2,008.1
                Non-Mineable (unfavorable geologic and/or safety conditions)             1,036.6
         Non-Balance Resources (do not meet thickness, ash, and depth criteria above)       782.8
         TOTAL DEVELOPED DEPOSITS                                          3,827.5

         IN UNDEVELOPED DEPOSITS (INCLUDING INACTIVE MINES)
         Balance Reserves (seams more than 40 cm thick, ash less than 60%, depth above 1200 m)
                Mineable                                                       4,913.7
                Non-Mineable (unfavorable geologic and/or safety conditions)             1,165.9
         Non-Balance Resources (do not meet thickness, ash, and depth criteria above)     1,891.0
         TOTAL IN UNDEVELOPED DEPOSITS                                     7,969.9

  TOTAL DOCUMENTED RESOURCES (DEVELOPED + UNDEVELOPED)             11,797.4

  TOTAL PROGNOSTIC11 (UNDISCOVERED) RESOURCES                            4,320.0

  TOTAL RESOURCES (TOTAL DOCUMENTED +  TOTAL PROGNOSTIC)      16,118.1
                                 Source: MEPDCR, 1991
   7 "Documented" coal resources include resources classified as A, B, C,, and C2 by the Czechoslovakian
government. In  U.S. terminology, these are equivalent to "identified"  resources, which include  measured,
indicated, and inferred resources.
   8 "Prognostic" coal resources  include resources classified as P, and  P2 (formerly called D, and  D2) by the
Czechoslovakian government. In U.S. terminology, these are equivalent to "undiscovered" resources, which include
hypothetical and speculative resources.
                                           18

-------
                                      Coal Production

The locations of OKR coal mines and mine concessions are shown in Figure 9. Coal production in 1990
was 19.7 million  tons, which represents more than 95 percent  of the total hard coal production in
Czechoslovakia. Production declined more than 10  percent between  1989 and  1990,  however,
because of rising  extraction costs and lower demand.

Table 6 provides  data on the coal mining concessions9 of the OKR, including 1990 coal production,
resources, and depths. The table also lists the starting date of production at the mine concessions.
Four of the mine concessions are in the  process of closure or are  expected to close by 1995, and the
Sverma mine concession closed in January 1992. These closures  are resulting from unprofitability and
reduction  of  subsidies. Nearly all of the coal in the OKR is mined from longwall faces, mostly by
mechanized methods.

All of  the mining concessions except for CSM are owned by OKD,  Inc., a state  enterprise.  CSM
became independent of OKD near the end of the 1980's, and CSM management is thus able to make
its own decisions regarding mining policy and procedures. While no longer controlled by OKD,  CSM
is still  a state-run enterprise, although plans for privatization have been made.
                                    Methane Liberation

Coals of the Kan/inS and uppermost Ostrava Formations tend to be the gassiest in the OKR, and they
are equivalent to formations with high gas contents in the Polish part of the Upper Silesian Coal Basin.

Data provided by the mine drilling and safety enterprise Ddlni Pruzkum a  BezpeCnost (DPB), indicate
that 524 million cubic meters of methane were  liberated from the 15  mine concessions operating in
the OKR in 1990 (Table 7). In 1989, about 494  million cubic meters of methane were liberated from
these mines; this is an approximation,  however,  because complete ventilation data for 1989 was not
available.  Table 7 also shows the amount of methane used by OKR mines  in 1990.  Nearly 126 million
cubic meters, or 24 percent of the liberated  methane, was being  used  rather than emitted to the
atmosphere in 1990. Note the distinction between "liberation"  and  "emission": liberated methane is
that released from the coal, whether or not it is utilized; emissions, in  the strict sense,  refer to liberated
methane that has not been utilized and therefore enters the atmosphere.

A number of factors suggest that the amount  of methane liberated,  as reported by DPB, is  accurate.
Methane volume and concentration is monitored at all mines. Methane content is monitored at the
face, throughout the entryways, at the intersections of entryways, in the ventilation  shaft itself, and
at the surface of the ventilation shaft. Measurements are recorded on  a regular basis.

As gob areas are sealed off, a  gas drainage  pipe is placed in the  barrier and is connected to the
drainage system; in this way, methane liberated from gob areas is accounted for.  During all shifts, a
person is stationed at the  barrier where the gob  is sealed off, and his sole function is to measure the
concentration of methane  in the pipeline coming from the gob  area.  In addition, the concentration of
methane flowing through all other degasification pipelines is measured at regular intervals, and methane
concentrations and volumes are carefully measured at the degasification stations on the surface.
   8 Note that a mining concession may contain more than one mine. For example, the Darkov mining concession
contains the Barbara mine, the Gabriela mine, and the Darkov mine.

                                             19

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                          \
FIGURE 9.  LOCATION OF MINES AND
MINING CONCESSIONS, UPPER SILESIAN
COAL   BASIN   (OSTRAVA-KARVINA
MINING DISTRICT), CZECHOSLOVAKIA

  ~"
                                             KEY TO MINING CONCESSION NAMES
                      16
   ODRA (VIT. UNOR)
   HERMANICE (R. RUEN)
   SVERMA
   OSTRAVA
   FUClK
   DOUBRAVA
   CSA
   LAZY (ZAPOTOCKY)
   DUKLA
10. DARKOV (1 MAJ)
11. FRANTlSEK (GOTTWALD)
12. 9 KVETEN
13. CSM
14. PASKOV
15. PASKOV-ZAPAD
16. STARlC
17. FRENSTAT
                                                                                                 \
KOPRIVNICE
            FRENSTAT
                •
                     17
              EXPLANATION


      OUTLINE OF ACTIVE MINING CONCESSION, MINE SYMBOL
      AT LOCATION OF MINE SHAFTS


      OUTLINE OF EXPLORATION FIELD (NO ACTIVE MINING).
      MINE SYMBOL  AT LOCATION OF MINE SHAFTS
                                                         SOURCE: DPB. PASKOV
                                                20

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   TABLE 6.  KEY CHARACTERISTICS OF MINE CONCESSIONS IN THE OSTRAVA-KARVINA DISTRICT (1990)
PRO-
AVERAGE DUCTION
MINING BEGAN
MINE CONCESSION DEPTH (m) (YEAR)
DOCUMENTED COAL RESOURCES
IN ACTIVE MINES (MT)
BALANCE1
RESOURCES
MINE-
ABLE
NON-
MINE-
ABLE
TOTAL
NON-
BALANCE2
RESOURCES
TOTAL RE
SOURCES
CH4
COAL LIBER- m3 CH4 PER
PRODUC- ATED TON COAL
TION (kT) (Mm3) MINED
                       CONCESSIONS WHOSE MINES ARE EXPECTED TO REMAIN OPEN
CSA
CSM
STARC
DARKOV (1 MAJ)
PASKOV
DUKLA
DOUBRAVA
9 KVETEN
LAZY (ZAPOTOCKY)
FRANTISEK (GOTTWALD)
795
770
750
683
740
850
730
600
640
800
1852
1968
1970
1852
1967
1907
1856
1961
1848
1911
193.1
214.3
226.6
324.0
168.4
54.6
186.4
72.2
112.1
44.7
190.6
242.6
43.3
158.7
43.6
24.8
98.9
38.4
52.5
16.3
383.7
457.0
269.9
482.7
212.1
79.4
285.3
110.5
164.6
61.0
66.4
75.0
83.4
99.9
47.4
21.6
34.1
18.2
32.7
20.8
450.0
532.0
353.3
582.6
259.5
101.0
319.4
128.7
197.3
81.8
1761.5
1911.9
1288.5
2945.9
720.0
1769.3
1293.4
1 1 37.4
1998.2
715.3
68.3
62.4
59.0
58.3
25.9
20.6
18.5
17.6
16.4
13.6
38.8
32.6
45.8
19.8
35.9
11.6
14.3
15.5
8.2
19.0
                       CONCESSIONS WHOSE MINES ARE IN THE PROCESS OF BEING CLOSED OR ARE LIKELYTO BE CLOSED BY 1995
OSTRAVA
HERMANICE (R. RUEN)
ODRA (VIT. UNOR)
FUCIK
SVERMA (closed Jan. 1992)
TOTALS (SUM OF ALL CONCESSIONS)
840
660
580
725
850
1840
1843
1849
1871
1892
83.5
127.7
60.1
48.0
92.4
34.9
28.4
40.1
7.7
15.8
118.3
156.2
100.2
55.6
108.2
42.2
58.6
47.6
110.9
24.1
160.5
214.7
147.9
166.6
132.2
957.7
496.0
852.3
1281.1
606.2
46.1
43.0
31.1
30.0
13.3
48.1
86.8
36.4
23.4
21.9
2008.1  1036.6 3044.7
782.8
3827.5
                                          19734.7
                                                   524.0
1 This category Includes only coal from seams greater than 40 cm thick, with ash content less than 60%, found at depths less than 1200 m.

2 This category includes coal not meeting thickness, ash content, and depth requirements specified In (') above.

-------
                      1990 METHANE EMISSION DATA FROM MINE CONCESSIONS OF THE OSTRAVA-KARVINA DISTRICT
                                               SOURCE:  DPB (UNDERGROUND EXPLORATION AND SAFETY ENTERPRISE)
MINE CONCESSION
DIST-
THICT
METHANE
BY VENTI-
LATION
LIBERATED
BY DRAIN -
AGE2
BY MINING
TOTAL
LIBERATED
DRAINED
BY
MINE
METHANE UTILIZED
METHA
BY IN- TOTAL EMITTf
DUSTRY UTILIZED ATMOJ
% OF TOTAL
NE LIBERATED
ED TO METHANE
SPHERE DRAINED
% OF
DRAINED
METHANE
UTILIZED
% OF TOTAL
LJ BE RATE D
METHANE
UTILIZED
% SHARE
OF TOTAL
METHANE
LIBERATED
CONCESSIONS WHOSE MINES ARE EXPECTED TO REMAIN OPEN
CSA1
CSM
STARIC
DARKOV (1 MAJ)
PASKOV
DUKLA
DOUBRAVA
9 KVETEN
LAZY(ZAPOTOCKY)
FRANTISEK (GOTTWALD)
SUBTOTAL
KARVINA
KARVINA
OSTRAVA
KARVINA
OSTRAVA
KARVINA
KARVINA
KARVINA
KARVINA
KARVINA

57.79
42.78
28.83
35.50
16.38
12.28
11.84
11.89
11.12
10.31
238.73
10.53
19.59
30.19
22.79
9.50
8.27
6.69
5.73
5.24
3.29
121.81
68.32
62.36
59.02
58.29
25.88
20.55
18.52
17.62
16.36
13.60
360.53
0.00
19.59
12.56
7.06
6.19
0.00
0.00
5.55
4.95
2.29
58.19
10.42 10.42
0.00 19.59
15.47 28.03
15.02 22.08
1.37 7.56
6.69 6.69
6.26 6.26
0.00 5.55
0.00 4.95
0.90 3.19
56.13 114.30
57.90 15.42
42.78 31.40
31.00 51.15
36.21 39.09
18.32 36.69
13.86 40.24
12.26 36.09
12.08 32.53
11.42 32.02
10.41 24.19
246.23 33.78
98.87
99.96
92.81
96.86
79.62
80.85
93.57
96.82
94.33
96.67
93.84
15.25
31.41
47.48
37.88
29.21
32.56
33.80
31.48
30.22
23.43
31.70
18.95
17.30
16.37
16.17
7.18
5.70
5.14
4.89
4.54
3.77
100.00
CONCESSIONS WHOSE MINES ARE IN THE PROCESS OF BEING CLOSED OR WILL BE CLOSED BY 1995
OSTRAVA'
HERMANICE (R. RIJEN)
ODRA (VIT. UN OR)1
FUCIK
SVERMA' (Closed Jan. 1992)
SUBTOTAL
OSTRAVA
OSTRAVA
OSTRAVA
OSTRAVA
OSTRAVA

TOTAL (ALL CONCESSIONS)
43.12
34.35
27.58
25.88
13.29
144.21
382.94
2.99
8.69
3.48
4.11
0.00
19.26
141.07
46.11
43.04
31.06
29.98
13.29
163.47
524.01
1.48
0.00
0.94
0.18
0.00
2.60
60.79
0.96 2.44
7.52 7.52
0.41 1.35
0.00 0.18
0.00 0.00
8.89 11.49
65.02 125.79
43.66 6.47
35.52 20.19
29.71 11.22
29.80 13.69
13.29 0.00
151.98 11.78
398.21 26.92
81.88
86.51
38.67
86.51
0.00
59.66
89.17
5.30
17.47
4.33
0.62
0.00
7.03
24.01
28.20
26.33
19.00
18.34
8.13
100.00
100
1 Ventilation data from ventibtion department, rather than degasification department
1 Drained methane is that which is recovered from the coal seams via boreholes. Only methane recovered via drainage is utilized. As shown in the column titled "% of Drained Methane Utilized", 89.17% of the methane
 recovered from OKR mines in 1990 was utilized.

-------
At all mines that have a methane drainage program, both the mine concession's ventilation department
and its degasification department (responsible for underground methane drainage) monitor the amount
of methane liberated by ventilation. For the CSM, Ostrava, Odra, and Sverma mine concessions, the
methane ventilation data shown in Table 7 reflects measurements made by the ventilation department.
For these four concessions, the ventilation department's data is more complete than the degasification
department's, because each  of these four concessions has one or more mines from  which methane
is not drained, and therefore no ventilation measurements are made by the degasification department.
All mines in the remaining eleven concessions have methane drainage programs, and for those eleven
concessions, the ventilation  data  shown in Table  10 reflects measurements  by the degasification
department.

Figure 10 is a contour map of methane liberated per ton of coal mined in the OKR; data was gridded
and contoured using the Kriging method, which is described in Appendix A. It is evident from this map
that coal in the western side  of the district liberates more methane per ton of coal mined than coal in
the eastern side of the district. The structural style changes across the Orlova~-Mich3lkovice fold/fault
feature; on the eastern side most of the displacement is through block faulting, whereas displacement
on the western  side is by movement along overturned and thrusted folds. The overthrusting may form
effective sealing, helping to  trap the  methane.  Structural  differences between the two sides of the
feature  are also manifested hydrologically; mines in the western, gassy area tend to have high water
discharge, while discharge of water from mines  in the eastern, less gassy area is lower (Appendix C).
The overall trend of the contours is consistent with that mapped in Poland (Pilcher et al, 1991).
 2.2.2  THE CENTRAL BOHEMIAN COAL BASINS

                                       Introduction

 The Central Bohemian Coal Basins, whose location is shown in Figure 6, contain two producing basins:
 the Kladno Basin, located 25 km west of Prague, and the Plzen Basin, located about 85 km southwest
 of Prague. The Central Bohemian Coal Basins also include several minor basins whose resources are
 unknown.  Productive area of the Kladno District is approximately 100 km2; the Plzen District has a
 productive area of about 70 km2. Average seam depth is 529  m at Kladno,  and 355 m at Plzen.


                                     Geologic Setting

 The main coal-bearing horizons in the Central Bohemian Coal Basins are of Carboniferous (Westphalian
 C and D, and Upper Stephanian) age. Stratigraphy is shown in Figure 8. Two formations  are coal
 bearing (Ehrenberger et al, 1985),  as described below:

 1.      Plzen-Kladno  (Lower Grey) Formation  (Westphalian  C,  partly D)   composed mostly of
        sandstones and  conglomerates, with lesser amounts of  siltstones  and  claystones. This
        formation contains 3 coal zones, the most productive coalbed is the  lowermost Radnice zone,
        containing 2 seams. The lower coal seam of the Radnice zone has a maximum thickness of 5
        m, and a high ash content. The upper seam is more widespread and  has an average thickness
        of 5-6 m.

 2.      Slany (Upper Grey) Formation (Stephanian B) - composed of mostly sandstones and claystones.
        Coal of the M6lnik Group  is unworkable, but the Kounov Group contains mineable seams,
        which rarely exceed  1 m in thickness.
                                            23

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FIGURE 10.  CONTOUR MAP OF METHANE   LIBERATED   DURING  MINING   UPPER
SILESIAN COAL BASIN  (OKR), CZECHOSLOVAKIA
 KEY TO MINING CONCESSION NAMES
1.  ODRA (VIT UNOR)
2.  HERMANICE (R. RJJEN)
3.  SVERMA
4.  OSTRAVA
5.  FUCI'K
6.  DOUBRAVA
1.  CSA
8.  LAZY (ZAPOTOCKY)
9.  DUKLA
10. DARKOV (1 MAJ)
11. FRANTISEK (GOTTWALD)
12. 9 KVETEN
13. CSM
14. PASKOV
15. PASKOV-ZAPAD
16. STARiC
17. FRENSTAT ,_--'"
                       17

^c
45. a
EXPLANATION
AMOUNT OF METHANE LIBERATED (M3) DURING THE
OF ONE TON OF COAL

MIMING
CONTOUR INTERVALS
!!M!I!I

\v,v-

0
••••
III! 20-30


50-60
SCALE
2 4 6 8 10 KM
" 	 1 	
DATA GRIDDED AND CONTOURED USING THE KRIGING METHOD
SOURCE
DPB, PASKOV
H
1
I
1
(SEE APPENDIX A)

                                               24

-------
The Kladno and Plzen Basins are technically similar to one another, and they were formed by the same
series of events. Much of the faulting in these basins occurred during Permian (Saxonian) time, and
the horst-and-graben tectonic pattern of the basins is shown in the tectonic map of the Plzen Basin
(Figure 11). On average, seams mined in the Kladno Basin are 3.9 m thick and the coal contains 0.7
percent sulfur, 21 percent ash,  and has an average heating  value of 20.5 MJ/kg. Average thickness
of mined seams in the Plzen Basin is 1.5 m, and the coal averages  0.4 percent sulfur, 39.8 percent
ash, and only 16.7 MJ/kg heating value. Moisture content in  both basins varies widely, from 6 percent
to 25 percent, and coal rank ranges from subbituminous to low-volatile bituminous, with subbituminous
coal predominating.
                            Coal Resources and Production

As shown in Table 8, coal production from the Central Bohemian Coal Basins totalled 1.6 million tons
in 1990, only 7 percent of Czechoslovakia's hard coal production. Roughly 84 percent of coal produced
from the Central Bohemian Coal Basins came from the Kladno Basin. Total documented  resources of
the basins are estimated at nearly 500 million tons, 89 percent of which is found in the Kladno District.

Mining began in the Kladno Basin around 1776,  and  while 9  major mine concessions have been
delineated (Figure 12), only two of them (Libusfn and Tuchlovice) are presently being mined. Production
decreased by 21  percent between  1988 and 1990,  due to rising extraction costs and  decreased
demand. Mining costs are subsidized, and it is likely that subsidies will end in  the future, resulting in
mine closures.

     TABLE 8. HARD COAL PRODUCTION  AND RESOURCES OF THE CENTRAL
                    BOHEMIAN COAL BASINS (IN MILLION TONS)
BASIN
Kladno
Plzen
TOTAL
1990 COAL
PRODUCTION
1.31
0.26
1.56
DOCUMENTED
RESOURCES
443.03
56.65
499.68
PROGNOSTIC
RESOURCES
571
40
611
TOTAL RESOURCES
1,014.03
96.65
1,110.68
Source: MEPDCR, 1991
Mining began in the Plzen Basin around 1793, and presently two concessions (Vejprnice and Dobrany)
are operating. Production decreased by 31 percent between  1988 and 1990, primarily due to rising
extraction costs and decreased demand. These Plzen mines are expected to be closed within the next
few years. Non-mechanized longwall mining is the principal method used in both Kladno and Plzen.


                                   Methane Liberation

The methane content of coal in the Central Bohemian Basins is generally considered to be low, and no
methane emissions have been officially reported. Gas associated with coal in Kladno Basin mines is also
reported to  have  a  high carbon dioxide  content (Koun, 1991). A joint venture between CenGaz
Company  and VKD (the state-owned mining enterprise at Kladno), to explore for coalbed methane at
the inactive Slany mine and  other mine concessions in the  Kladno Basin, was recently formed
(MEPDCR, 1991). At time of publication, no information on the progress of this venture was available.
                                            25

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FIGURE 11.  TECTONIC  MAP OF THE  PLZEN BASIN, CZECHOSLOVAKIA
       HRADEC
                         EXPLANATION
-1	'	 NORMAL FAULT, ARROW ON DOWNTHROWN SIDE

~-~~	 BOUNDARY OF CARBONIFEROUS

^+200-^"  CONTOUR OF BASEMENT

   •     CITY
                                        2.5
                                              SCALE
                                                5
                                                       7.5
                                                             10 KM
                                  CONTOUR INTERVAL: 100 METERS

                                  SOURCE: LOZEK AND PETRANEK, 1966
                                    26

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          FIGURE 12.   LOCATION  OF  MAJOR  MINE  CONCESSIONS,
                    KLADNO DISTRICT, CZECHOSLOVAKIA
flAKOVMK
TUCHLOVICE
        EXPLANATION
HIGHWAY NO.
CONCESSION OUTLINE
             HIGHWAY
              SOURCE: WILSON, 1892
                     APPROXIMATE SCALE
                        1:200,000

                  5       10       15
                                                                      KRALUPY
                                                                      N.VLT.
         NOVE STRA$ECf
                                                                        20 KM

-------
No problems with methane have been encountered in the Plzen Basin, and no emissions of methane
from the basin's mines have been reported.


2.2.3  THE LOWER SIIESIAN COAL BASIN (TRUTNOV DISTRICT)

                                       Introduction

Only the southwestern limb of the Lower Silesian Coal Basin,  whose location  is shown in Figure 6,
extends from Poland into Czechoslovakia, where it is known as the Trutnov District. The total area of
the District is approximately 470 km2, however the productive area is only about 50 km2 (Ehrenberger
et al, 1985).

Coal  mining began in the Trutnov District (Figure 13)  in the 1700's. Presently, coal is produced from
2 mine concessions. Trutnov District coal is high volatile to low volatile bituminous in rank; it is not
suitable for coking (Ehrenberger et al, 1985).  Average seam depth is 533 m.


                                    Geologic Setting

The Lower Silesian Coal Basin originated as a large intermontane trough, trending northwest-southeast,
in a late Paleozoic mountain range. The  general stratigraphy of the Trutnov District is shown in Figure
8. Sedimentation in the district began with the 2acle7 Formation  (Westphalian A through C). The 2acle7
Formation is composed of  conglomerates, sandstones, minor siltstones, claystones,  and coal beds.
Near the town of 2acle7, it contains two coal  groups, divided by thick strata. Here, the thickness of
the 2acl6F Formation reaches nearly 700 m; it decreases toward the southeast, and the amount of coal
it contains also decreases.

Overlying the 2acle7 Formation is the Odolov Formation (Westphalian D through Stephanian B), which
has a total thickness of 1200 m  and consists of two  members:

        the Svatonovice Member, approximately 400 m thick, with 4 coal seams (2 of which are
        developed)  in the  upper part; and

        the Jfvka Member, whose Radvanice Group includes 6 coal seams in a  100  to 150 m
        thick  coal bearing interval.

Most of the coal  resources in the Trutnov District are within seams of the ZacleT Formation.  Only 24
seams in this  formation are  mined, each  of them averaging about 1 m  in thickness. The Odolov
Formation is also mined;  four coal seams occur in the Svatonovice Member, two of which are mined,
and six coal seams occur in  the Radvanice Member,  two of which are mined. Mined seams  in the
Trutnov District average  1.2 m thick.
                             Coal Resources and Production

As shown in Table 9, coal production from the Trutnov District totalled 459 thousand tons in 1990,
only 2 percent of all hard coal production in Czechoslovakia. Total documented resources of the basin
are estimated at 314 million tons.
                                            28

-------
FIGURE 13.  GEOLOGIC MAP OF THE TRUTNOV COAL DISTRICT,   CZECHOSLOVAKIA
                                                          \
                                                                      EXPLANATION




                                                         R = RADVANICE COAL-BEARING SERIES



                                                        Sv = SVATONOVICE COAL-BEARING SERIES



                                                         t = 2ACLER COAL-BEARING SERIES



                                                         k = CRETACEOUS




                                                         5 = RED BARREN BEDS, ZECHSTEIN AND TRIASSIC



                                                         o = OTTWIELER BEDS



                                                        ib = 2ACLER BEDS



                                                         0  CITY








                                                                 SCALE




                                                        SOURCE: HYNIE, 1948
                                              29

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    TABLE 9. HARD COAL PRODUCTION AND RESOURCES OF THE TRUTNOV
                            DISTRICT (IN MILLION TONS)
1990 COAL
PRODUCTION
0.46
DOCUMENTED
RESOURCES
313.63
PROGNOSTIC
RESOURCES
150
TOTAL RESOURCES
463.63
Source: MEPDCR, 1991
Coal is presently produced from the Jan Sverma and Katefina mining concessions; longwall mining is
the principal method used.  Production decreased  by 31 percent between  1988 and  1990, and
negotiations regarding restructuring or closure of these mines is  underway.  Coal mined from both
concessions has high concentrations of radioactive elements, and new laws on disposal of radioactive
waste will further reduce the economic viability of the mines (Koun, 1991). There  are also  other
problems with coal quality; average sulfur content of coal mined from the Trutnov District is 1 percent,
for example, average ash content is 45  percent, average moisture content 4.4 percent, and average
heating value is only 16.2 MJ/kg.
                                  Methane Liberation

It is reported that coal of the Trutnov District has a higher methane content than that of the Kladno
District, and there is some data available on mining emissions. Apparently, no methane is utilized by
the mines, and all is emitted to the atmosphere. Table 10 contains methane emission data for the
Trutnov District received from the  MEPDCR in 1991; the year in which these measurements were
taken is not specified but it is assumed that the data is current as of 1990.

  TABLE 10. METHANE AND  CARBON DIOXIDE EMISSIONS FROM ACTIVE  COAL
                         MINES OF THE TRUTNOV DISTRICT
MINE
JAN SVERMA
KATERINA
TOTAL
ANNUAL
METHANE
EMISSIONS
(thousand m3)
803.0
up to 36.5
up to 839.5
1990 COAL
PRODUCTION
(MT)
N/A
N/A
0.46
METHANE
EMITTED PER TON
COAL MINED


up to 1 .8 m3/ton
CARBON
DIOXIDE
EMISSIONS
(thousand m3}
12,799.1
2,646.3
15,445.3
Source: MEPDCR, 1992
This data  indicates that  the Trutnov District coal has a much higher carbon dioxide content than
methane content. The presence of carbon dioxide appears  to be related to northwest-southeast
trending faults, where carbon dioxide from the underlying outgassing intrusions accumulates.
                                           30

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2.2.4 THE BOSKOVICE TROUGH


                                       Introduction

The Boskovice Trough, also known as the Rosice Basin, is a narrow, north-northeast trending belt west
of Brno in the Czech Republic (Figure 6). It is approximately 75 km long, and its productive area is
approximately 20 km2 (Ehrenberger, 1985).

Mining began in  the Boskovice Trough  in the 1850's. Presently, coal  is produced from  1  mine
concession. Coal rank is medium volatile and high volatile bituminous. Mining depth is around 500 m.


                                    Geologic Setting

The Boskovice trough was formed during tectonic movements of the Asturian Orogeny, which occurred
in Late Carboniferous time. The trough is filled by material transported  from rising regions of the
Bohemian Massif. Sedimentation began in latest Carboniferous (Stephanian) time and extended through
the Early Permian. The sequence consists of a basal conglomerate, overlain by sandstones, siltstones,
claystones, coal beds, marlstones, and carbonates.

Three  coal beds, all dated as uppermost Stephanian, occur in the above described sequence. The
uppermost seam is the most widespread; its thickness is usually between 3 and 4 meters, but reaches
10 meters in places; average thickness of mined seams is 3.1 meters. Coal beds dip 40-50 degrees,
except in the southern part of the  basin where dip is less.

Coal mined from the Boskovice trough averages 2.7 percent sulfur,  47.3 percent ash,  2.8  percent
moisture, and has an average heating value of 16.8 MJ/ton.


                             Coal  Resources and Production

Coal production from the Boskovice Trough totalled 140 thousand tons in 1990, which was less than
1  percent of hard coal produced  in  Czechoslovakia. Total documented  resources  of the basin are
estimated at  26 million tons. Estimates of prognostic resources were  not available.

Coal is presently produced from the Jindfich  mining concession. Production decreased by 41  percent
between 1988  and 1990, and all mining in the Boskovice Trough is expected to cease by the end  of
1992.


                                   Methane Liberation

Methane outbursts have been reported in mines of the  Boskovice Trough, but no methane emissions
data was available. Apparently, no utilization of coalbed methane is taking place.
                                            31

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2.3  COALBED METHANE RESOURCE  ESTIMATES

Preliminary estimates suggest Czechoslovakia's coalbed methane resources are large. Ideally, resource
estimates  should be based on gas content measurements of Czechoslovakian coals.  Because such
data are currently unavailable,  two alternative resource estimation methodologies are used in this
report.  The first approach is based on specific emissions,  and the second approach is based on
measured  gas contents from coals in nearby Polish mining concessions. As more detailed information
becomes available,  these estimates  can be refined and improved.
2.3.1   ESTIMATES ACCORDING TO SPECIFIC EMISSIONS

"Specific emissions" refers to the volume of methane liberated per unit weight of coal mined during
a given  time period, commonly expressed in m3 per ton. The resulting values are estimates of the
methane contained in the coal bearing package, rather than just the potential  target coal seams.
Therefore, unless specific emissions values are adjusted to account only for methane contained in the
target coal seams, resource estimates may be inflated.

Table 11 shows the methane resources associated with active OKR coal mining concessions, estimated
according  to  methods A through E.  Method A calculates methane resources  by multiplying the
unadjusted specific emissions for a given mining concession, by the coal reserves contained in that
concession, thereby potentially including the methane contained in the entire rock package. Methods
B and C adjust these values by assuming that the gas contained in target coal seams in the OKR ranges
from 10 percent (Method B) to 65 percent (Method C) of that contained in the entire rock package.
The basis for this assumption is explained below.

Diamond et al (1991) reported that approximately 90 percent of  the gas liberated into  the  mine
workings during mining of the Upper Kittaning  coalbed in Pennsylvania (the Northern Appalachian
Basin) emanates from  coal  seams overlying  the target coal seam,  and from strata down dip.
Researchers at the Skochinsky Institute (1992) in Russia report that  the gas contained by coal seams
and thin intervening partings ranges from 10 percent to 65 percent  in various mining districts of the
Donetsk Basin of Ukraine and Russia,  and that the remaining gas-ranging from 35 to 90 percent of
emissions-is  emitted  from  non-coal  rocks. The primary  cause  of  disparity  between  the two
observations is lithologic differences  between  the two coal bearing intervals  that were studied,
suggesting that this variable depends on the lithologic and structural characteristics of a specific basin,
or even  more  localized regions within a given basin.

Using unadjusted specific emissions can cause the coalbed methane resource to  be overestimated if
adjacent coal  seams that were included in the coal resource estimate are the  source of some of the
methane that  is emitted into the  mine workings  during mining. The coalbed methane resource would
be "double counted" because the weighted  average of the gas liberated during mining would include
the gas from the adjacent mineable seams and the target seam, but  would not consider that some of
the methane would be depleted from some  of the coal resource. In the OKR this  factor is minimized
due to the fact that during exploitation of the coal reserves, mining of coal bearing intervals usually
proceeds from top to bottom of the sequence,  and the structural continuity  caused by caving and
development of the gob area is in an upward direction, away from unmined coal resources.

The same resource estimation methods are used in Table 12, which summarizes the estimated methane
resources  contained in active mining concessions, as  well as those contained in undeveloped coal
deposits, inactive mines, and in prognostic (undiscovered) coal deposits.
                                            32

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                              TABLE   11 .   ESTIMATED METHANE RESOURCES ASSOCIATED WITH
                                           COAL MINING  CONCESSIONS IN THE OKR  (1990)
MINE CONCESSION
SPECIFIC
EMISSIONS
(m3 / TON)
ESTIMATED METHANE RESOURCES (MILLION CUBIC METERS) CALCULATED ACCORDING TO:
A). SPECIFIC
EMISSIONS
TOTAL
BALANCE DOCUMENTED
RESERVES1 RESERVES'
B). 10 PERCENT OF
SPECIFIC EMISSIONS
TOTAL
BALANCE DOCUMENTED
RESERVES RESERVES
C). 65 PERCENT OF
SPECIFIC EMISSIONS
TOTAL
BALANCE DOCUMENTED
RESERVES RESERVES
D). ASSUMED GAS
CONTENT (4.4 m3/T)
TOTAL
BALANCE DOCUMENTED
RESERVES RESERVES
E). ASSUMED GAS
CONTENT (23.0 m3/T)
TOTAL
BALANCE DOCUMENTED
RESERVES RESERVES
                             CONCESSIONS WHOSE MINES ARE EXPECTED TO REMAIN OPEN





GO
CO



CSA
CSM
STARIC
DARKOVd MAJ)
PASKOV
DUKLA
DOUBRAVA
9 KVETEN
LAZY (ZAPOTOCKY)
FRANTISEK (GOTTWALD)
38.8
32.6
45.8
19.8
35.9
11.6
14.3
15.5
8.2
19.0
14,882
14,905
12,363
9,550
7,622
922
4,085
1,712
1,348
1,160
17,455
17,352
16,183
1 1,527
9,325
1,173
4,574
1,994
1,616
1,555
1,488
1,491
1,236
955
762
92
409
171
135
116
1,746
1,735
1,618
1,153
933
117
457
199
162
156
9,673
9,688
8,036
6,208
4,954
600
2,655
1,113
876
754
11,346
11,279
10,519
7,493
6,062
762
2,973
1,296
1,050
1,011
1,688
2,011
1,188
2,124
933
349
1,255
486
724
268
1,980
2,341
1,555
2,563
1,142
444
1 ,405
566
868
360
8,825
10,510
6,208
11,101
4,878
1,826
6,562
2,542
3,786
1,403
0,351
2,236
8,126
3,399
5,968
2,322
7,346
2,960
4,538
1,881
                             CONCESSIONS WHOSE MINES ARE IN THE PROCESS OF BEING CLOSED OR ARE LIKELY TO BE CLOSED BY 1995
OSTRAVA
HERMANICE (R. RIJEN)
ODRA (VIT. UNOR)
FUCIK
SVERMA ( closed 1 / 92)

TOTALS ( ALL CONCESSIONS)
48.1
86.8
36.4
23.4
21.9
5,697
13,552
3,653
1,302
2.372
7,728
18,634
5,390
3,898
2.899
570
1,355
365
130
237
773
1,863
539
390
290
3,703
8,809
2,375
846
1,642
5,023
12,112
3,503
2,534
1.884
521
687
441
245
476
706
945
651
733
682
2,722
3,592
2,306
1,280
2.488
3,692
4,939
3,401
3,831
3.041
95,126
121,303
9,513
12,130    61,832
78,847   13,397
16,841    70,027
88,032
' Refers to methane resources associated with balance coal reserves. Balance coal reserves contain seams
greater than 40 cm thick, with ash content less than 60%, and must be at depths less than 1200 m.

'  Refers to methane resources associated with documented coal reserves. Documented coal reserves = balance + non-balance
reserves; non-balance reserves are those not meeting thickness, ash content, and depth criteria specified in (1) above

-------
 TABLE 12. ESTIMATED METHANE RESOURCES OF THE
OSTRAVA-KARVINA DISTRICT (IN BILLION CUBIC METERS)
I. DOCUMENTE
la). In Coal of t
Mineable
Non-Mineable
Subtotal
1b). In Coal of
TOTAL DOCL
2. PROGNOST
2a) . In Coal of
2b). In Coal De
TOTAL PROG
TOTAL METh
A. SPECIFIC
EMISSIONS1
B. 10% OF
SPECIFIC
EMISSIONS
C. 65% OF
SPECIFIC
EMISSIONS
D. ASSUMED
GAS
CONTENT
(4.4 rn3/T)
E. ASSUMED
GAS
CONTENT
(23.0 ms/T)
ED2 METHANE RESERVES (In Mine Concessions Active as of 31 Dec. 1991)
he Balance Resource Classification
64.0
31.1
95.1
6.4
3.1
9.5
41.6
20.3
61.9
8.8
4.6
13.4
46,2
23.8
70.0
the Non-Balance Resource Classification
26.2
2.6
17.0
3.4
18.0
IMENTED METHANE RESERVES
121.3
12.1
78.9
16.4
88.0
C2 METHANE RESOURCES
Undeveloped Deposits (Including Inactive Mines)
252.6
25.3
164.2
35.1
183.3
posits Classified as Prognostic (Undiscovered)
136.9
13.7
89.0
19.0
99.4
'NOSTIC METHANE RESOURCES
389.5
39.0
253.2
54.1
282.7
IANE RESOURCES (TOTAL DOCUMENTED + TOTAL PROGNOSTIC)
510.8
51.1
332.1
70.5
370.7

1 Specific emission value is 37.1, based on a weighted average of the specific emissions
values for each mining concession listed in Table 1 1 .
2 The term "documented methane reserves", as used here, denotes those associated with active
(as of 1991) mining concessions. "Prognostic methane resources" denotes those associated
with a) coal resources in undeveloped documented coal deposits (including inactive mining
areas) or b) coal resources officially categorized as prognostic.
                       34

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2.3.2  ESTIMATES ACCORDING TO ASSUMED GAS CONTENTS

Typically, the coalbed methane resources of a coal basin are assessed by multiplying the amount of
coal in different sections of the basin by the gas content of the coal in each section. The coal gas
content is determined from desorption tests performed on coal samples from these various sections
of the basin. Ideally, therefore, the coalbed methane resources of Czechoslovakia would be assessed
using gas  content data from  coal  desorption tests  performed on numerous  samples collected
throughout the OKR and other Czechoslovakian basins.

However, as noted previously,  desorption data indicating gas contents of Czechoslovakian  coals is
currently unavailable.  Coal gas content data from nearby concessions in the Polish part of the Upper
Silesian Coal Basin was used instead. Coal gas contents obtained from 17 Polish mining concessions
ranged from 4.4 to 23.0 m3 per ton. It is assumed that this range of gas contents is reasonably similar
to coal gas contents in the OKR, as the coals are of the same rank. Therefore, as shown in Tables 11
and 12, coal resources of the  OKR were multiplied by 4.4 m3 per ton and 23.0 m3 per ton in methane
resource estimation methods  D and E, respectively.

The reliability of using this range of assumed gas contents is limited by two factors. First is the  obvious
limitation associated with attempting to estimate coal resources of the OKR using coal gas contents
from sources  outside of the  OKR. The second  limitation  involves  the  technique used for coal gas
content estimates in Poland, which may  not adequately account for gas lost from coal samples prior
to  sealing  in desorption canisters. The reliability of coal  gas content estimates is affected by  the
technique used to collect coal samples, and by the methodology used for estimating the amount of in-
situ gas contained by the coal.

A coal gas content estimate comprises three components: the gas that is desorbed and measured,  the
gas that is not desorbed and remains in the coal  (residual gas), and the 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. This latter component is called "lost gas".  Generally, in
developing an estimate of the coalbed methane resources contained in a coal field, only the measured
gas and the unmeasured lost gas are  considered. Residual gas is, by definition, not  likely to be
produced during the coal or methane extraction processes, so it is not considered to be of commercial
importance, nor is it a potential source of methane emissions during mining. It is likely, however, that
some of the residual gas is  emitted during coal handling and crushing operations prior to combustion.

Difficulties arise in estimating the amount of lost gas, and many techniques have  been proposed. Any
technique that is to be used with confidence must provide a volume correction factor that accounts
for the amount  of gas that is likely to desorb at a specific rate under the temperature and pressure
conditions extant at the time of sampling. Gas contents used in this report were calculated according
to  Polish methodology, which uses a constant volume correction factor.  Because the same volume
correction  factor is used for every coal  sample, it does not take into account regional variations in
temperature or pressure gradients, which are usually significant, nor does it account for the significant
changes in temperature or pressure  that the sample is exposed to as  it travels uphole during core
retrieval. If temperature or  pressure gradients are large,  they can greatly increase the amount of  lost
gas, which in turn influences  the gas  content of the coal. For example,  laboratory experiments
comparing desorption rates vs. coal depth have been performed in Raven Ridge Resources' laboratory.
These experiments have shown that,  at a geothermal gradient similar to that of the OKR and  adjacent
Poland, under constant pressure the rate of desorption increases 1.3 times for each 700 m of depth,
during the first minute of desorption. The constant volume correction factor used  in estimating  gas
contents in Poland would not account for this significant increase in the desorption rate. Therefore,


                                             35

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the assumed gas contents used for  resource estimation in this report  may be too low and may
underestimate the size of the coalbed methane resource.
2.3.3  DISCUSSION OF COALBED METHANE RESOURCE ESTIMATES

Using the specific emissions method adjusted as described in Section 2.3.1, and the assumed gas
contents as described in Section 2.3.2, the coalbed methane resource of the OKR is estimated to be
51 to 371 billion  m3, of which 12 to 88 billion m3  are documented (associated with active mining
concessions)  and 39 to 283 are prognostic, as shown in Table  12.  Appendix B compares these
resource estimates with estimates from other Carboniferous coal basins.

It is  assumed that the  coalbed methane resource of the OKR is within the range reflected in this
preliminary resource estimate. Moreover, this resource estimation methodology  may underestimate
Czechoslovakia's total coalbed methane resources for several reasons:

•      First,   these  methane resource estimates are based on  official  coal  resource  estimates,
       developed as  part of mining resource assessments.  It is unlikely that they account for coals
       buried deeper than 1500 m, which is beyond the economic and technological limits of mining
       in the OKR. There may be more deeply buried coals that contain large amounts of gas in the
       OKR, however. Coalbed methane is being produced from coal seams and associated sandstone
       reservoirs in the Piceance Basin of western Colorado, USA at depths up to 2600 m, which
       suggests that  exploration and  development  of  deep  resources  of  coalbed methane in
       Czechoslovakia  should be attempted.

•      Second, no resource estimates were prepared for other Czechoslovakian  basins, such as the
       Kladno Basin  and  Lower  Silesian Basin (Trutnov District), which may also contain  significant
       amounts of gas.

•      Third, the upper limit of the resource estimate  is based on a coal methane content that may
       not account for lost gas, as discussed in Section 2.3.2 above.


Assessment of coalbed  methane resources in Czechoslovakia could be improved by obtaining accurate
gas content measurements and estimates of producibility from coals of the OKR and other coal basins.
Ideally, this would involve drilling boreholes  at selected sites and analyzing the resulting  geological,
geophysical, and geochemical data.  Data that would be collected and analyzed from such  a program
would include:  horizontal and vertical variations  in permeability,  lateral variations  in gas content,
hydrologic parameters,  lateral continuity of the coals, and estimates of the  gas contained in adjacent
lithologies.


2.3.4  THE RECOVERABILITY OF COALBED METHANE

The  amount of coalbed methane that can be recovered is, to a large extent,  determined  by natural
characteristics of the coal-bearing rock package, including the geologic conditions in which it presently
exists. For the most part, these natural characteristics cannot be altered by technological efforts. The
primary factor that may limit production of methane from a coalbed is the coal's matrix permeability,
which is its capacity to transmit fluids along the pore spaces. Matrix permeability of the Carboniferous
coals found in  European basins is  low,  but in  some cases, post-depositional  structures  such as
fractures or cleats may serve as natural pathways along which the methane can be transported. In this


                                            36

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case, the matrix permeability is not increased, but accessibility to pores within the coal is improved.
Likewise, stimulation techniques used to increase productivity of methane from the coalbed do not
create  permeability, but simply enhance access to the pore space, linking the borehole to naturally
occurring permeability.

Successful recovery depends on the coalbed's natural capacity for gas production, and the design and
implementation of stimulation and  completion techniques appropriate to the conditions. It is difficult
to estimate the amount of gas that will be recovered from a coalbed methane deposit without some
prior experience in similar geologic conditions. Many companies  expect to recover at least 30 to 35
percent of  the in-place reserves. However, a study in the Black Warrior Basin of Alabama shows that
in one case the methane contained  in the coal had been drained after ten years of production (Diamond
et al, 1989).  Unfortunately, until exploration and production of methane from the Upper Silesian Coal
Basin proceeds, recoverable reserves can only be estimated  by comparison with  other basins having
similar geologic characteristics.
                                              37

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                                  CHAPTER  3
   COALBED METHANE RECOVERY AND  UTILIZATION
                POTENTIAL IN CZECHOSLOVAKIA
3.1    COALBED METHANE RECOVERY

Reducing the concentration of methane in mine ventilation gas is a prime safety concern of coal mines
throughout the world. This can be accomplished by increased ventilation, which can involve adding
additional ventilation shafts or increasing the size of the fans, or by decreasing the amount of gas
contained in the coal through methane drainage. As the amount of methane liberated per ton of coal
mined increases, the capacity of the ventilation system must also increase. As shown in Table 6, this
ratio is high for those mine concessions which liberated the greatest amounts of methane. Experience
elsewhere has shown that there are economic limits to the amount of methane that can be removed
from ventilation systems alone. However, there are no economic benefits to simply ventilating methane
in a region where natural gas is imported for use. In addition, the Czech  Ministry of Environment, in
accordance with the recently enacted Hydrocarbons Law, plans to impose fines for coalbed methane
emissions. Reportedly, the fines will go into effect sometime in 1992. The fine structure, based on a
progressive increase of Czechoslovakian Korunas (Kcs10) per ton of methane emitted (assuming the
specific weight of methane is 0.7 kg/m3, or 95 percent methane concentration) is shown in Table 13.
The individual mine concessions, rather than OKD, will be held accountable for emissions and imposed
fines.

Table  7 shows that all mines in the OKR (except Sverma, which is now closed) are utilizing methane
recovered by drainage; but, as of 1990, methane drainage recovered only  27 percent of the total
methane liberated by mining. In addition, only 89 percent of the drained methane is currently utilized.
Significantly more gas could be available for utilization  with an integrated approach to drainage in
conjuction with mining operations.
   10 Throughout this report, a 1991 conversion rate of 30 Czechoslovakian korunas to 1 U.S. dollar is used.

                                          39

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       TABLE  13. PROPOSED FINE STRUCTURE  FOR METHANE EMISSIONS
                                     (JaroSet al, 1991)
Year(s)
1992-1993
1994-1995
1996
1997
Fine for Methane Emissions
Kcs per ton CH4
600
1200
1600
2000
1991 $US perm3 CH4
$0.014
$0.028
$0.037
$0.047
3.1.1  METHANE DRAINAGE METHODS

The predominant method of methane drainage  from coal seams in the OKR is by means of upward-
inclined boreholes drilled from the entryways into the strata above the coal seam to be mined. These
boreholes range in length from 10 to 60 m, and the spacing of the boreholes is directly proportional
to the amount of gas anticipated to be contained in the coals. This methane content value is indirectly
derived based on the amount of methane liberated from the mined seam. (In contrast, the method for
deriving gas content in the U.S. is direct laboratory measurement of the methane desorbing from the
coal, and/or the amount of methane the coal is capable of adsorbing).

After the drainage boreholes are  drilled, casing is placed in the holes and connected  to an in-mine
methane drainage pipeline system. The methane contained in the overburden is then drawn out by a
system of pumps located at the surface. This process is started in advance of mining and is also used
to drain the methane from the remaining gob.

The efficiency of gob drainage is dependent on effectively  sealing the gob area. The  quality of the
drained gas, both from the boreholes  as  well as  the gob, averages  between  52 and  60  percent
methane.   Downward-inclined boreholes have been drilled in  the past to  drain methane from  the
underlying strata, but the boreholes filled up with water which was brought down from the surface for
use in  mining operations, and methane  production was very low.

Another methane drainage method is used exclusively at the CSM mine. An entryway is developed into
a non-productive coalbed underlying the coal seam  to be mined, and upward-inclined  boreholes are
drilled, intersecting several thin  non-mineable coal  seams between  the entryway and the targeted
seam.  These boreholes are then connected to the  methane drainage  pipeline system and methane
production  is continued until no longer economic. When this method  is combined with the previously
described method, the overall efficiency increases to 65 percent.
3.1.2 OPT80NS FOR INCREASED RECOVERY

As stated previously, an integrated approach to mine drainage could maximize the recovery of methane
within Czechoslovakia's mining concessions and improve mine profitability and safety. This approach
could include recovery of methane before, during, and after mining, both from the surface and within
                                            40

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the mine. Table 14 summarizes the four main methane recovery options and indicates the potential for
recovery of each. If all methods of recovery were implemented and coordinated with mining activity,
as much as 80-95 percent of the methane liberated could be recovered.

The Jim Walter Resources  (JWR) mines in the Black Warrior Basin in Alabama, USA exemplify the
economic success of an integrated  mine drainage system. As increasingly  gassy seams were
encountered, it became uneconomic to increase the size of the ventilation fans. Moreover, even with
larger fans, coal production would be  limited to uneconomic levels unless drainage techniques were
used. By initiating an integrated vertical and horizontal drilling and a post-mining gob methane drainage
program, the mines were able to improve safety,  increase productivity, and operate more profitably.

As an example, JWR No. 4 mine, which produces more than 2 million tons of coal  annually, would
have to double the air flow need for mine ventilation if it did not employ gob drainage. The additional
ventilation shafts would cost an estimated $15 million US. The additional power to  run them would
cost $0.91 US per ton of coal, and many more underground airways would be required. JWR  mine
engineers state that this would not be feasible, either technically or economically. In addition to money
saved as a result of the methane drainage program, proceeds from methane sales provide further
revenue. JWR has sold more  than 1.5 billion cubic meters of pipeline quality gas since 1983 (Dixon,
1990).  Its methane recovery  efficiency is currently 35-40 percent.

The optimal  methane recovery program  will be determined by  many  factors,  including technical
considerations such as mine safety requirements,  gas quality and quantity, economic  factors, regional
energy  needs, environmental  objectives, and time considerations.  Note that the recovery potential of
Stages  I through  III is proven, but that Stage IV needs demonstration.


3.2    COALBED  METHANE  UTILIZATION

As shown in Table 7, nearly ninety percent of the coalbed methane drained from OKR mines in 1990
was utilized.  Compared with  many coal mining areas of  the world, this is an excellent utilization rate.
About half of the utilized gas is consumed by the mines, while the remaining half is sold to Northern
Moravian Pipeline (SMP) for  consumption by outside industries, including metallurgical plants and
power plants. Only 27 percent of the total methane liberated from OKR mines is currently drained,
however, and thus improved  methane drainage could greatly increase the amount of coalbed methane
available for  utilization.

OKR mines presently use in-mine methane recovery (Stage II). It appears that implementation of vertical
pre-mining methane recovery  (Stage I)  and post-mining methane recovery (Stage III) could increase gas
recovery and would reduce the amount of methane emitted through the ventilation system. The quality
of this  gas is typically high and it is likely that this gas could be transported in existing natural gas
pipelines.

While coalbed methane could be used as an alternative to hard coal, the  most economical use of this
resource would likely be as  an alternative to natural gas,  town  gas and coke  oven gas. The total
amount of methane currently being utilized from drainage is 126 million cubic meters annually, which
is significant considering the  fact that currently, 241 million cubic meters of natural gas is consumed
in the OKR annually.  Of this only 23  million cubic meters is produced from local gas fields, and the
rest (approximately 218 million cubic meters) is imported from the CIS annually. Thus, the nearly 400
million cubic  meters of methane that is now being emitted annually to the atmosphere from coai mines
could replace the natural gas imported into the  region, and additional gas could be injected in the
pipeline system to be utilized  elsewhere in Czechoslovakia.


                                             41

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         TABLE 14. METHANE RECOVERY AND UTILIZATION STRATEGIES
(AFTER PILCHER ET AL, 1991; AND U.S/JAPAN WORKING GROUP ON METHANE, 1992)



METHOD

Vertical
Pre-Mining
Recovery
(Stage I)





In-Mine
Recovery
(Stage II)



Post-
Mining
(Gob)
Recovery
(Stage III)




Ventilation
Air
Recovery
(Stage IV)
Integrated
Recovery


RECOVERY
TECHNIQUES



Vertical Wells
Drilled from
Surface
In-mine
Boreholes for
Gas Recovery
from Mined
Seams and/or
Roof and Floor
Rock




In-Mine
Boreholes or
Vertical Gob
Wells



Large ducts
transport
ventilation air
to point of use

Combined
strategies


SUPPORT
TECHNOLOGIES
Advanced
Surface Rigs,
Compressors
Pumps, and
other support
facilities


In-Mine Drills,
Compressors,
Pumps, and other
support facilities


In-Mine Drills
and/or Basic
Surface Rigs,
Compressors,
Pumps, and other
support facilities







Surface Fans and
Ducting

All Techniques



GAS QUALITY



High Quality (32-
37,000 kJ/m3;
above 90% CH4)


Medium Quality
(11-29,000
kJ/m3; 30-80 %
CH4)
to High Quality







Medium Quality





Low Quality (1-
5% CH4; usually
below 1%)

All Qualities



USE OPTIONS

Chemical
Feedstocks,
Power Generation
Direct use by
Industry /Residences





Power Generation,
Direct Use






Power Generation,
Direct Use





Combustion Air for
On-Site/Nearby
Turbines and Boilers

All Uses


AVAIL-
ABILITY




Currently
Available





Currently
Available






Currently
Available





Needs
Demon-
stration
l-lll Now
Available

CAPITAL
REQUIRE-
MENTS




Medium/
High





Medium/
High







Low






Medium/
Low
Medium/
High
TECH-
NICAL
COM-
PLEXITY




Medium/
High





Medium/
High







Low






Medium/
Low

High


APPLI-
CABILITY


Technology,
Finance,
and Site
Dependent



Technology,
Finance,
and Site
Dependent



Widely
Applicable

Site
Dependent



Nearby
Utilization

Site
Dependent
Combination
of above

CH4
REDUC-
TIONS



30-80 %
of gas-in-
place
40-45 %
of gas
remaining
after
comple-
tion of
Stage I
Up to 80%
of gas
remaining
after
comple-
tion of
Stage II

About
50% of
gas
remaining
after
comple-
tion of
Stage III
80-90%
recovery

-------
3.2.1   DIRECT INDUSTRIAL USE OPTIONS

Within the Ostrava-Karvina region, eight industrial consumers accounted for 90 percent of all the gas
fuel (including natural gas, coke oven gas, propane-butane, and town gas) consumption in the region
in 1987. These customers include metallurgical industries, automobile and rail car manufacturers, and
heavy equipment manufacturers. A description of their gas use is  shown  in Table 15,  and their
approximate locations are shown in Figure 14. A breakdown of quantities of specific types of gas being
used by these consumers in 1987 was not available; however,  more specific  information  on
consumption of gas delivered by SMP to the top four consumers was available for 1991. Because the
last column (1991) refers only to gas delivered by SMP, coke oven gas values in this column do not
include  that which is produced on-site. The 1987 column includes coke  oven gas produced on-site,
therefore indicating total gas consumption, rather than only consumption of gas  delivered by SMP

Three industrial consumers (ZDB Bohumin, NovS Hut, and Vftkovice) have used coalbed methane, but
in  1991, ZDB Bohumin was reportedly the only coalbed methane consumer. However, a  coalbed
methane pipeline directly connecting Nova" Hut with KarvinS-area coal mines is being constructed
(Figure  15), and it is expected that by 1994 Nova" Hut will use as much coalbed methane as the mines
can supply. All of the consumers in Table 15 are served by conventional natural gas pipelines, and they
represent opportunities for expanded use of coalbed methane.
3.2.2 POWER GENERATION OPTIONS

Currently, about 10 mines in the OKR use small amounts of coalbed methane in some of their boilers
for heat generation, but other fuels (coal, coal waste rock, or conventional natural gas) are used in the
majority of boilers at the mines. Aside from the use of boilers for heat production, most of the mines
do not have their own power generation facilities. Exceptions are the CSA power plant and the Odra
power plant, both of which used  coalbed methane to meet some of their power generation needs in
1991 (Table 16). Use of coalbed methane for power generation on a larger scale is under consideration
by DPB and various mining  and other industrial enterprises in the OKR. Possible options for using
methane in power generation include cofiring coal and methane, converting boilers to intermittent use
of  methane, and use of methane in fluidized bed combustion, internal combustion engines, or gas
turbines.

The locations of major coal fired power plants in Czechoslovakia are shown in Figure 16. Only two of
these power plants, Detmarovice and Vojany, use hard coal while the remaining plants use brown coal.
Both major (capacity greater than 200 MWe)  and minor coal-fired power plants in the Ostrava region
are listed in Table 16, and their locations are shown in Figure 14. If any of the methane recovered from
OKR mines  is not utilized by existing natural gas consumers, it could  be practical to implement or
increase coalbed methane use at these power plants, either by cofiring or by retrofitting boilers to use
methane intermittently (seasonally) or year-round.

Referring to Table 16, note  that, as of  1987, the KarvinS, CSA,  and  Odra plants were using some
conventional natural gas and "other gas" in  addition to coal or oil. "Other gas"  refers to  coalbed
methane and/or coke oven gas; the 1987 data was not broken down according to quantities of specific
gas types consumed. More specific data was available for 1991, indicating that the Karvina" power
plant used 11 million cubic  meters of coalbed  methane in addition to  coal, the adjacent CSA  mine
power plant used 15 million  cubic meters of coalbed  methane in addition to coke oven gas, and the
Odra mine power plant used 1  million cubic meters of coalbed methane.


                                            43

-------
    TABLE 15. LARGEST GAS FUEL CONSUMERS IN THE
OSTRAVA-KARVINA REGION IN 1987 (Vupek, 1991; DPB, 1992)
COMPANY
Vitkovice
Ostrava
TZ Tfinec
NovS Hut
Ostrava
ZDB
Bohumin
Tatra
Koprivnice
Vagonka
Studenka
Ostroj
Opava
Sigma Dolni
Benesov
TOTAL
INDUSTRY TYPE
Metallurgical (Iron
Manufacturer)
Metallurgical
Metallurgical (Steel
Manufacturer)
Metallurgical (Iron
Manufacturer)
Automobile
Manufacturer
Rail Car Manufacturer
Mine Machinery
Manufacturer
Manufacturer of Air
Pumps

TOTAL
AMOUNT
OF GAS1
CONSUMED
IN 1987 (TJ)
51,825.8
38,076.2
8,567.1
4,030.9
2,091.8
352.6
199.8
47.0
105,191.2
SHARE OF
TOTAL GAS
CONSUMED
IN
OSTRAVA-
KARVINA
REGION IN
1987 (%)
44.10
32.40
7.29
3.43
1.78
0.30
0.17
0.04
89.51
CONSUMPTION OF GAS
DELIVERED BY SMP IN 1991
4,631 TJ (116 X 10s m3) of
conventional natural gas; 671
TJ (35 X 10" m3) of coke oven
gas
4,028 TJ (101 X 108m3) of
conventional natural gas
40.9 TJ (1.02 X 108 m3) of
conventional natural gas
966 TJ (24 X 108m3) of
conventional natural gas; 706
TJ (37 X 10e m3) of coke oven
gas; 88 TJ (4 X 10a m3) of
coalbed methane
All conventional natural gas
consumed is produced from
nearby PFibor gas field
Some or all of gas consumed is
conventional natural gas
Some or all of gas consumed is
conventional natural gas
Some or all of gas consumed is
conventional natural gas
N/A
1 Undifferentiated; may include one or more of the following: natural gas, coke oven gas, propane-butane,
town gas, or coalbed methane
                        44

-------
    FIGURE 14.  GAS DISTRIBUTION NETWORK (SCHEMATIC)
X POWER PLANTS, GAS AND GAS STORAGE FIELDS, AND
                      ,
   \ MAJOR GAS-CONSUMING  INDUSTRIES IN THE OSTRAVA-
                                               KARVINA REGION
                                         GAS-CONSUMING INDUSTRIES
                                         El  OSTROJ OPAVA
                                         (U  TZ TftlNEC
                                         [E  ZDB BOHUMlN
                                             NOVA HUt OSTRAVA
                                         HI  VITKOVICE IRON WORKS
                                         H]  VAGONKA STUDENKA
                                         [3  TZ TftlNEC
                                             TATRA KOPRIVNICE
                                           _ PIPE LINE INTERSECTION
                                         TftlNEC~ (NEARBY CITY SHOWN)
                                         tumult  APPROXIMATE LOCATION OF
                                          (D   ELECTRIC POWER PLANT
                                         SUCM/i  APPROXIMATE LOCATION OF
                                          ®
          SOURCE: MEPDCR, PRAGUE. & DPB PASKOV    0   2   4    6    8   10 KM
            45

-------
FIGURE 15.  SCHEMATIC DRAWING OF COALBED METHANE  AND COKE OVEN
GAS PIPELINE SYSTEMS, OSTRAVA- KARVINA REGION         •
                                                  f*     O£SA •   NOVA HUT
          ZDBOHUMfN>                  	**     Ir^S    KARVINA
           T
            HERMANICE

    ODRA-VRBICE
  neniviAmue      •
         Q-     • •'
'RBICE    /  . • *
     ..
^••   SVOBODA
§VERMA

      OSTRAVA
              EXPLANATION

          DEGASIFICATION STATION

          METALLURGICAL PLANT
          COKING PLANT
          CITY

          COALBED METHANE PIPELINE (EXISTING)
   	COALBED METHANE PIPELINE (PROJECTED)
   	PIPELINE FOR COKE OVEN GAS
   SOURCE: DPS, PASKOV
                                                       VPFM   STAftlC I
                                                                           DARKOV
                                                                               £SM
                            •'NOVA HUT
                              OSTRAVA

-------
 TABLE 16. ENERGY CONSUMPTION AND PRODUCTION OF POWER PLANTS IN THE OSTRAVA REGION





PLANT

DETMAROVICE
KARVINA


CSA MINE


SUCHA


TREBOVICE


ODRA MINE

TOTAL


YEAR
PLANT
WAS BUILT
(APPROXIMATE)

1976
1950-1960


N/A


N/A


1935


N/A





INSTALLED
CAPACITY
IMWe)

800.0
47.0


24.0


12.0


80.0


10.5




1987
ELEC.
OUTPUT
(QWh/yr)

3,038.6
78.5


85.3


72.1


251.2


51.2

3,576.9


1987
THERMAL
OUTPUT
(TJ/yr)

859.1
433.0


2,281.8


2,372.1


4,794.8


2,415.6

13,156.4
1987
CONVEN-
TIONAL
NATURAL
GAS USE
(TJI

0
432.0


69.2


0


0


1.5

502.7
"OTHER GAS-
USE IN 1987
(COKE OVEN
AND/OR COALBED
METHANE)'
(TJI

0
0


500.2


0


0


1,051.3

1,551.5

1987
TOTAL
FUEL
INPUT
(TJI

32,765.4
2,295.5


4,457.1


3,284.7


8,668.7


3,252.4

54,475.8
ESTIMATED
POTENTIAL
CBM USE (COM-
PLETE CONVERSION)1
(Million
m* per year)

1009.5
60.2s


96.3=


101.8


269.8


100.1 =

1690.9s
ESTIMATED
CBM REQ'D
FOR 10%
COBBING'
(Million
m* per year)

284.6
20.1


39.0


28.7


75.9


28.4

473.7



TYPE(S) OF
FUEL USED
IN 1991

COAL
COAL AND
COALBED
METHANE
COKE OVEN GAS
AND
COALBED METHANE
OIL
AND
COAL

COAL


COALBED
METHANE

	 " I



I]
COMMENTS
CONSISTS OF FOUR 200 MW
PLANTS.
USED 11 MILLION m' CBM IN
1991. CONSISTS OF THREE
PLANTS NEAR MINES.
USED 42 MILLION m° CBM IN
1991. USED 15 MILLION m"
COKE OVEN GAS IN 1991.

N/A

WILL BE MODIFIED
TO THERMAL
PLANT SOON
BEING PHASED OUT, ENERGY USE
N 1991 MUCH LESS THAN IN 1987.
USED 1 MILLION m= CBM IN 1991.

' Specific type(s) of gas and their quantities not differentiated * Based on 1987 energy output 3 In addition to methane used annually as of 1991
Sources: Vupek, 1991; DPB, 1992

-------
                            FIGURE 16.  GAS DISTRIBUTION NETWORK AND APPROXIMATE
                      LOCATION  OF MAJOR COAL-FIRED   POWER STATIONS IN  CZECHOSLOVAKIA
                                         CZECHOSLOVAKIA

                                       BROD
              EXPLANATION

LEDVICE (?) BROWN COAL-FIRED POWER STATION

VOMHY © HARD COAL-FIRED POWER STATIONS

     •  CITY

     101  NATURAL GAS PIPELINE [DIAMETER IN CENTIMETERS)
                  SCALE
              25    50   75   100 KM
   SOURCE: INTERNATIONAL PETROLEUM ENCYCLOPEDIA. 1991

-------
The column in Table 16 titled "Estimated Potential CH4 Use" shows the amount of methane the plant
would consume daily if it were using methane as its only fuel  (in the case of the Kan/inS, CSA, and
Odra plants, values reflect the additional amount of methane that would be used, since these plants
already consume methane).  The values were derived by converting the total fuel input in terajoules
to the equivalent volume of coalbed methane. Four percent was then added to that volume to account
for efficiency drops that normally occur when coal or coal or oil boilers are retrofitted to use gas (Fay
et al,  1986).  However, it is  important to note that new gas- or gas and coal-fueled combined-cycle
systems (as opposed to modified existing coal-fired boilers) would have considerably higher efficiencies
than conventional coal-fired  boilers.

The estimates in Table  16 are illustrative, and it is important to  bear in mind that feasibility and actual
methane consumption will  be site-specific. Before  a project is  initiated, more  detailed data and
engineering studies would be required. These estimates indicate that there is a large potential market
for coalbed methane, however.
                                Cofirina With  Natural Gas

Cofiring with gas has many potential benefits, including reduced sulfur dioxide emissions, greater fuel
flexibility (allowing the utilization of lower cost, lower quality coal), improved plant capacity factor, and
production of saleable fly  ash. At some power plants in the  United States, cofiring  has reduced
operating costs by hundreds of thousands or even millions of dollars per year (Vejtasa et al, 1991). In
addition, if for any reason natural gas would no longer be available, the boiler could continue to operate
entirely on coal.

The column  "Estimated Gas Required  For  10% Cofiring"  in Table 16 reflects the  daily volume  of
methane that would be consumed if 10 percent of the heat input were derived from natural gas.  This
was calculated by converting 10 percent of the total fuel input in terajoules to the equivalent volume
of methane, and adding 0.7 percent to that volume to account for efficiency drops that normally result
from cofiring. This slight decrease in efficiency is due to the increased flue gas moisture associated
with firing gas as compared to coal.


                      Converting  Boilers to Intermittent Use of Gas

Another potential option for methane consumption in power plants  in the Ostrava-Karvina" region  is to
retrofit boilers to burn gas intermittently with the hard coal. The idea of intermittent, rather than year-
round gas use may  be attractive because it is likely that most power plants will need to continue
burning at least some coal in the event that there is  not be enough coalbed methane to meet the year-
round needs of  the  larger power plants. Intermittent gas use would allow the power  plant to  take
advantage of low summer  prices for methane, while maintaining the flexibility of being able to  burn
coal when gas is unavailable or more expensive.
                               Internal Combustion Engines

 Internal combustion engines (1C engines) can generate electrical power utilizing medium to high quality
 coalbed methane. Typical capacities of 1C engines range from several kilowatts to as much as 1 MW.
 These sizes are much smaller than gas turbines and would be more compatible with the production of
 coalbed methane from a single well. As an example, a 1  MW 1C engine would require approximately

                                             49

-------
10,000 cubic meters  of methane per day. 1C engines  require medium-quality gas (30-80 percent
methane) such as that produced by in-mine (Stage II) and post mining (Stage III) recovery.

1C engines are modular in design and require little specialized expertise to install and maintain. Due to
their relatively small size, they can be relocated fairly easily as the gas supply is depleted. In addition,
they can operate on medium quality methane from degasification systems. Previously, variations in gas
quality caused some problems with  the use of mine gas in  1C engines, but with modern integrated
control systems it now appears possible to accommodate for fluctuations in gas quality.

Recently, management at the Staffc mine  has been considering utilizing 1C engines which will burn
coalbed methane for power generation at  the mine. Engine size would be about 320 kW, so each
engine would burn approximately 3,200 cubic meters of coalbed methane per day.
                                       Gas Turbines

Gas turbine generators are generally used in the United States by electric utilities to provide power
during peak demand times. As stated earlier, there are currently no gas turbines operating in the OKR.
Instead, peak power demand is met by close monitoring and forecasting, and is regulated by stiff rate
increases if the limit is exceeded. Given the environmental concerns associated with coal burning and
the abundance of coalbed methane in the OKR, gas turbines may be an attractive alternative to coal-
fired power generation. Gas turbines are more efficient, cost less to install, and are available in a large
range of sizes. This allows for the addition of smaller increments of increased capacity to handle peak
consumption,  rather than  investing  in  larger, capital  intensive coal-fired  units  that would be
underutilized.

In addition, gas turbine exhaust is a good source of waste heat which can be utilized to generate steam
in a heat recovery boiler.  When this  steam is used for process  or district heating, this process is
known as cogeneration. If this steam  is used in a turbine generator for additional  electrical power
production, the system is known as a  combined cycle.  If the steam were injected into the hot gases
flowing to the thermal turbine, the system would then be known as a steam injected turbine (STIG).
All of these uses improve the thermal efficiency of the system.

Gas turbines fueled by coalbed methane  recovered from gob areas have been successful  in England,
Australia, Germany, and China, and have undergone experimental use in the U.S. (Sturgill, 1991). In
most of these cases the waste heat is being recovered from the turbine stack for use in an auxiliary
thermal process.  Gas turbines may soon be manufactured in Czechoslovakia  by a joint venture
company formed by Siemens and Skoda. This could eliminate the cost  of importing them.

Gas turbine systems that can  use coal or coal-based fuels have recently been developed. These
systems are highly efficient, environmentally sound, and are ideal  for situations where coal costs are
lower than gas costs (Bajura and Webb,  1991).
3.2.3 VENTIIATSOW AIR UTILIZATION

Currently, there are relatively few uses for the methane contained in mine ventilation air, due to its low
concentration. Numerous studies have  examined the possibilities of purifying this gas, but with
currently available technology, the expense is too great. However, as technology progresses, it may
eventually become economically feasible to enrich the gas contained in mine ventilation air using  some
of the methods discussed in Section 3.2.4.


                                             50

-------
At present, the best option for utilization of ventilation air appears to be as part of the fuel mixture in
steam boilers or gas turbine generators. This ventilation air could supply all or most of the combustion
air required, while the methane in the air would supply a portion of the needed fuel.
                         Ventilation Air Use in Coal-Fired  Boilers

Preliminary technical feasibility analyses have indicated that ventilation air from a mine could probably
be transported at the power plant through  the existing boiler air ducts and coal circuits  without
modifying the stability  or safety of the boiler operation (Energy Systems Associates,  1991; Bain,
1991). Methane contained in the ventilation  air would readily be  consumed in the boiler and deliver
heat to the  process. The percentage of heat would depend on the concentration of methane. With
typical boiler efficiencies and air requirements, if the ventilation air contained 0.5 percent methane, it
would supply approximately 7 percent of the boiler's energy, and  ventilation air containing 1  percent
methane would supply  14 percent of the boiler's energy.

In addition, if methane were used to generate a percentage of the boiler's energy, reducing the amount
of coal required,  the results  would be less coal handling, lower pulverizer power requirements and
maintenance costs, reduced furnace slagging, lower ash  handling,  and lower emission of  particulates,
sulfur dioxide, and nitrogen oxides (Pilcher et al, 1991).
                            Ventilation Air Use in Gas Turbines

The combustion air requirements of a gas turbine  are  correlated  to  its generating  capacity. The
combustion air required for simple cycle gas turbines is approximately 10 m3/hr of air per kilowatt of
installed turbine capacity. This calculation is based on manufacturer operating and design data for
turbines in the 1 to 100 MW size range. Slightly lower air flows are required for the  more complex
combined cycle plants. This flow is about three times the flow required for steam boilers as a result
of turbine cooling requirements. The turbine temperature should be sufficient to fully combust the
methane in  ventilation air, providing heat to the  process.

At  0.5 percent  methane, ventilation air would supply about 15 percent of the heat to the turbine.
When the ventilation air contains 1 percent methane, approximately 30 percent of the  turbine energy
can be derived from this waste product. Obviously, this  would significantly increase the appeal of a
gas turbine  operation.

Currently, there are no gas turbines operating in the Ostrava-Kan/inS Region. At one time, a gas turbine
fueled by coalbed methane was reportedly utilized on a trial basis at the Darkov mine concession, but
both the capital costs and  maintenance costs  were considered to be uneconomical. DPB officials
believe that this may have been due in part to lack of familiarity with the equipment and procedures,
and that future  use of gas turbines should not be ruled out.


In order to  assess the potential to use ventilation air, the  following issues should be investigated
(Pilcher et al, 1991):

        •      the number of ventilation shafts, flow rates, and volume of air leaving each shaft.

        •      the methane concentration in the ventilation air.
                                              51

-------
       •      the distance between the ventilation shafts and the mine power plants.

       •      detailed information on power plant characteristics, annual output, efficiency, and
              projected utilization.

The feasibility of using recovered ventilation air should be demonstrated. If it proves feasible, it should
be included, when possible, in every mine's integrated methane drainage program. In cases where it
is  not feasible for either technical or economic reasons, aggressive  Stage l-lll methane drainage
programs should be employed to reduce the amount  of methane that  is liberated  by the ventilation
systems. Studies indicate that with aggressive use of Stage l-lll methane recovery systems, up to 85
percent  of  the methane could be recovered without use of ventilation air.  Currently, most mines
achieve  efficiency of 20-30 percent, however.
3.2.4  GAS ENRICHMENT

Much of the gas currently recovered by mine methane drainage systems is not considered pipeline
quality.  Mining regulations require that gas with a methane concentration greater than 30 percent be
recovered and transported to the surface via pipeline. Overall, the concentration of methane in recovery
pipelines has decreased from 60 percent to 50 percent since  1974.  Most of the gas vented  after
recovery has a methane concentration that ranges from 30 to 50 percent (herein  referred to as low-
methane gas).  One mine-owned heat plant has used gas with concentrations of methane ranging from
33 to 38 percent, but most heat plants require gas quality to be at least 48 percent.

Presently, approximately 15 million m3 of methane are recovered and then vented at the surface (about
half of this  methane  is from mines that will be closed  by  1995).  The concentration  of  methane
decreases as the life of an in-mine or gob gas well proceeds. If a more aggressive mine drainage and
gob gas recovery program is pursued in the mines that are to remain open, the amount of recovered
gas with methane concentrations below 50 percent will likely increase. However, volumes produced
at any one location may remain relatively  small.

Current  research suggests that two types of gas enrichment technologies are best suited to small-scale
applications  (those which treat less than about 300,000  m3 of gas per day), such as enrichment of
mine drainage gas. These technologies are pressure swing adsorption and membrane gas separation.

                               Pressure Swing Adsorption

In this process, a molecular sieve is used to remove nitrogen or carbon dioxide from the feed gas
stream.  The  process separates the gases by selectively adsorbing either the unwanted gases or the
hydrocarbon gas under pressure, and subsequently placing a vacuum to the adsorbent bed, causing
the adsorbed gas to be released. By alternately exerting pressure and placing a vacuum on the system,
timing the pressure swing to take advantage of the rate at which the gases are selectively adsorbed,
gas separation is achieved.

Presently available  pressure swing systems use carbon molecular sieves. Another type of molecular
sieve, zeolites, holds promise for gas separation applications.  In the past, synthetic zeolites have been
used for limited gas separation applications, and a recent research development project demonstrated
that some species of naturally occurring zeolites perform at least as well as the carbon molecular sieve
for separation of nitrogen and carbon dioxide from methane.
                                             52

-------
                               Membrane Gas Separation

Membrane gas separation is based on the differences in the diffusivities and solubilities of various
gases within the membrane material. The relative rate at which different gases pass through the
membrane is called the selectivity. A polymeric organic membrane system has been used for carbon
dioxide removal, and the development of a membrane system to selectively remove nitrogen from
natural gas is underway.

Membrane separation units have several features that make them attractive for gas separations. Within
the basic unit itself, there are no moving parts, membrane units can be easily replaced, variations in
flow rates can be easily accommodated and startup can be accomplished in a very short time.

                                     Operating Costs

Cost comparisons  among various processes are complex and situation  dependent.  Because these
technologies do not have a long history,  actual costs are not yet  well  established.  However, the
following cost approximations provide general guidelines.

To enrich a feed gas containing  70-80 percent methane to pipeline quality, operating costs range from
approximately  $0.01/m3 to  $0.04/m3 for pressure swing adsorption  systems, and from $0.03/m3 to
$0.09/m3 for membrane gas separation systems (Sinor, 1992; Meyer  et al,  1990). The cost of
enrichment of lower-methane gas {30 to 50 percent methane) is not known and should be researched.
It is important to bear in mind that, because this gas would otherwise  be vented to the atmosphere,
the cost of the feed gas is effectively zero, enhancing the economics.


3.2.5 GAS PIPELINE SYSTEMS IN CZECHOSLOVAKIA

Figure  14 shows the  existing  natural gas pipeline system in the Ostrava-KarvinS region, which is
maintained by SMP, and Figure 16 shows the major natural gas pipeline  network of Czechoslovakia.
As  noted in Section 3.2.1, a pipeline system for coalbed  methane is already in place  in the Ostrava-
Karvina region (Figure 15), as is a coke oven gas pipeline system. The  existing coalbed methane and
coke oven gas pipeline systems  are operated  by SMP, but the planned coalbed methane pipeline
connecting Nova Hut' with Karvin^-area coal mines will be operated  by OKD. About 65 million cubic
meters of coalbed  methane were  sold to SMP in 1990. This  methane  was  in turn  sold to  various
industrial consumers such as the CSA power plant,  the adjacent KarvinS power plant, and the ZDB
Bohumin ironworks and wire plant.

Coalbed methane that would be  drained from the surface in advance of mining should be pipeline
quality, and it may be possible to meet applicable quality standards with  gob gas as well (as proven
by the  JWR mines). Pipeline quality gas could be injected directly into the natural gas pipeline system
for transportation to end-users. Coke oven gas and the present concentrations of mine drainage gas
both have very similar calorific values and as production of coalbed methane increases, DPB hopes to
transport it via coke oven gas pipelines, eventually phasing out all transportation of coke oven gas.


3.2.6 FUEL  SWITCHING WITH COALBED METHANE

Like conventional natural gas, coalbed methane is an environmentally acceptable fuel because when
burned, it emits virtually no pollutants such as sulfur dioxide or particulates, and it emits much less
carbon dioxide than coal and oil. Some fuels that coalbed methane could replace are:

                                            53

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                                       Brown Coal

The use of brown coal for residential and commercial  heating in the Ostrava region is a primary
contributor to the current high sulfur dioxide and particulate levels in the region. The availability of
coalbed methane may permit conversion of existing coal-fired hot water residential and commercial
boilers to gas, reducing local  pollution. Ninety  percent  of the  sulfur dioxide  emitted  by coal
consumption in Czechoslovakia results from burning brown coal, so any displacement of brown coal,
whether  in the Ostrava-Karvina" region  or  other  regions,  would provide environmental benefits.
Opportunities also exist at the OKR mines themselves, as in some cases  brown coal is used for fuel
in the mine boilers. Additional opportunities exist in residential and commercial heating the Ostrava-
Karvina" urban complex. Although it may not be cost-effective to transport coalbed methane from the
OKR to distant consumers (eg. in the northwestern Czech Republic or in the Slovak republic), increased
use of coalbed methane in  the  Ostrava-Karvina"  region would increase the amount of conventional
natural gas for available for  displacement of brown coal outside the region.
                                        Town Gas

In some situations it may be practical to use coalbed methane as a substitute for town gas, a highly
polluting form of energy. In Bohemia, a region in the western Czech Republic, 1.8 billion cubic meters
of town gas were consumed in 1990 (Federal Ministry of Economy, 1992). Although there is currently
no coalbed methane recovery from the nearby Central Bohemian Coal Basins,  if proposed exploration
is successful, coalbed methane could potentially replace some of the town gas consumed in Bohemia.
In 1989, 45.7 million cubic meters of town gas were consumed in the Ostrava-Karvina region (Vupek,
1992). Coalbed methane recovered from OKR mines could potentially replace this resource.
                                     Coke-Oven Gas

In 1990, 3.1 billion cubic meters of coke oven gas were consumed in the Ostrava-Karvina" region
(Federal Ministry of Economy, 1992), all of it by industries. Much of this coke oven gas was produced
as a by-product of the conversion of coal to coke for use in metallurgical industries, and it is better to
consume this coke oven gas rather than  vent it. However, as coke and coke oven gas production
decrease in response to the decline in heavy industry in the region (and nation), present consumers of
coke oven gas will need to use an alternative gas fuel, and coalbed methane would be a much cleaner
replacement.

The eastern Slovak Republic consumed 981 million cubic meters of coke oven gas in 1990 (Federal
Ministry of Economy,  1992), most likely produced from metallurgical plants in the region. As in the
Ostrava-Karvina" region, it would not be beneficial to replace this gas with coalbed methane where the
alternative to utilizing the coke oven gas would be to vent it. Furthermore, because the Slovak Republic
has no known hard coal  or coalbed methane resources, coalbed methane used for such displacement
would have to be transported from the Czech  Republic. Currently, the only pipeline between the
eastern part of the  Czech Republic and the eastern  part of  the Slovak Republic is the main  high
pressure line transporting imported natural gas the CIS westward to Czechoslovakia.
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3.2.7 UNDERGROUND GAS STORAGE

Underground storage should be considered as part of any coalbed methane use strategy. With storage
facilities, gas can be used as demand dictates. For example, gas produced when demand is low (such
as during the summer) can be stored and used during periods of higher demand. This would relieve
some of the dependency on natural gas purchased from the CIS.

In many gas producing areas of the world, including Czechoslovakia, underground storage of natural
gas and other fuel gases is the most common means of storing gas to meet peak seasonal market
requirements. Types of reservoirs preferred are porous reservoirs, including depleted oil and gas fields
as well as aqueous reservoirs. Other sites used for storage are natural and manmade salt caverns and
rock caverns. Underground gas storage was first utilized in the United States in 1916, and today there
are more than 400 storage fields with a total capacity of over 228 billion cubic meters of gas, or
almost half the annual U.S.  gas consumption. In addition, utilization of underground gas storage is
beginning to allow capitalization  of spot gas market purchases, managing of transportation imbalances,
handling of short-term standby supply needs, enhanced oil  recovery, hedging on  the gas futures
market, and managing of marketing and production by producers (Thompson, 1991).

The development of underground storage of fuel gas began in Czechoslovakia in the early 1950's, but
commercial utilization did  not begin until  1965. The first facility was built near Pferov south of the
Ostrava-Karvinei region, specifically for town gas storage. There are currently at least seven active gas
storage fields in Czechoslovakia, all in  depleted  natural  gas reservoirs. They  are: Lab,  Hrusky,
Stramberk, 2ukov, BR-10, Lobodice, and Dolni Dunajovice.  Present natural gas storage capacity of
these fields is 2.4 billion cubic meters, not including the capacities for 2ukov and BR-10. An additional
80 million cubic meters of town gas can be stored,  primarily at Lobodice (Novotny & Plachy,  1990).

The Stramberk, 2ukov, and BR-10 facilities are the only active gas storage facilities located near hard
coal mining areas in the OKR (Figure 15). Of these three, Stramberk is the largest and oldest, with a
current capacity of 760 million  cubic meters. Presently, gas stored  in this facility is purchased from
the CIS. According to an  agreement with the CIS, Czechoslovakia  pays a reduced  price for its gas
imports in  exchange  for maintaining the pipeline across their country for gas moving from the CIS to
Central and Western Europe. There are no pipelines linking Stramberk with the coal mines, and there
are no compressors located  at  the storage facility because the CIS pipeline pressure is sufficient to
inject the gas into the reservoir. Before this facility could be  used  for storage of coalbed methane,
approximately 10 km of pipeline would have  to be built and compressors would have to be installed.
The estimated cost  of installing the pipeline and compressors  would be 15 million Kcs, or about
$500,000  US in  1991 dollars.  OKD hopes to increase the capacities of both Stramberk and Zukov.
According  to existing plans, the active gas storage capacity of Stramberk would increase from  320
million m3 to at least 420  million m3, at a cost of about 800 million  Kcs, or about 27 million m3.

In addition to expanding existing storage facilities, another option available in the  OKR is that of gas
storage in  abandoned coal mines. Two abandoned mines have been utilized for imported natural gas
storage at  two locations in Belgium since the early 1980's. Criteria essential to the success of gas
storage in  abandoned coal mines have been identified (Moerman, 1982) as follows:

        •      The mine must be separated from adjacent workings by impermeable barriers.

        •      The overburden  rock  must be  thick enough and preferably  water-bearing, to  secure a
               tight  cap with no natural communication to the surface.
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       •      The abandoned workings must be dry, no water should be flowing into the mine.

If a selected mine meets all of these criteria, the  next step in development would be to identify and
seal all openings (shafts and galleries). Pipes would need to be installed through some of these seals
for future gas injection. In addition, the storage  capacity of the mine and the maximum operating
pressure would have to be determined. Finally, consideration must be given to the reaction  of the rock
mass to the gas, specifically,  the ability of the unmined coal to adsorb any gas injected  into to mine.
This phenomena greatly enhances the ultimate storage capacity of the mine.

The Belgian mines using this technique are described as having an impermeable Miocene clay cap over
the coal bearing strata, a water saturated zone overlying this cap, a well-understood geological setting,
and structural isolation via faults. In addition, much of the gas stored in the Belgian facilities is actually
stored  in the remaining coal through adsorption, greatly increasing the current storage volume of the
mine. These specific criteria also apply to the mine concessions in the OKR which are slated for closure
in the near future (Section 2.2.1). At these mines, the Carboniferous is overlain by impermeable water
saturated  Miocene deposits and are bound on the east by the MichSlkovice structure (Figure 7).

In  assessing the economic feasibility of using  abandoned mines for storage of coalbed methane, the
cost of developing the facilities should be weighed against the costs of importing of natural gas from
the CIS, and of venting coalbed methane to the atmosphere.
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                                 CHAPTER 4
             THE  ROLE  OF COALBED METHANE  IN

          CZECHOSLOVAKIA'S ENERGY  ECONOMY


4.1  OVERVIEW

As described in Chapter 1,  Czechoslovakia's energy economy depends heavily on lignite and brown
coal for conversion to electrical and thermal energy.  However, the proportionate use of fuel types
within Czechoslovakia is in transition and will continue to be for some time.  This transition  was
initiated in response to the movement of the Czechoslovakia toward a market oriented economy, and
the breakup of the CMEA.

Although  the end of the CMEA brought about a series of interrelated improvements in energy price
rationalization and the shutdown of inefficient and uneconomic industries, the legacy of the CMEA is
manifested in the structure of the economy (EIU,1991). This structural legacy is reflected in the:

       •      consumption of energy and raw materials per unit of GDP at a rate of about twice that
             in most western countries. This is a cause of widespread environmental degradation;

       •      reliance on supplies of CIS energy and raw materials exchanged, on a preferential and
             noncompetitive basis, for manufactured goods;

       •      the  existence of a  largely uncompetitive industrial structure that thrived  within the
             CMEA but cannot compete in the open  world market;

       •      foreign trade that is oriented toward the  CIS and has not fully reoriented  toward
             western  economies.
4.2 THE ENERGY ECONOMY  IN TRANSITION

Steps are being taken by the government of Czechoslovakia to mitigate lingering problems in the
energy sector by a series of price reforms and a movement away from fixed prices and toward world
prices.  This price restructuring will be felt not only in the rationalization of imported energy prices but
also in the price structure of internally produced energy (Hauptvogel, 1991). The  impact of the
purchase of imported energy fuels using hard currency at world market prices, has been felt throughout
each of the energy use sectors. However, the most immediate and dramatic effects of these changes
will be felt in the industrial sector.
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Adjustments  in the  price structure  of  energy fuels  consumed by the  industrial sector will be
accompanied  by phased withdrawal of federal subsidies and closure of uneconomic industries.  In
addition, there is a concomitant reorganization of industry in response to the disappearing market for
certain manufactured goods, which has resulted in lessened need for the past level of conversion of
brown coal and lignite to electrical and thermal energy.

In response to the  lessened  need for coal  conversion as the  energy input to heavy industry,  a
proportionate decrease in coal extraction and processing is taking place, causing further shifts in the
market for fuels.  If modern energy efficient equipment is installed in the industrial, household and
commercial sectors, the opportunity for even more dramatic changes in the mix of fuels consumed by
Czechoslovakia will emerge. In anticipation of these opportunities, Czechoslovakia has developed the
following energy  policy goals (UNECE,  1991 a) to  add to the momentum  of change in energy
consumption:
       •      a substantial increase in the production of electricity using nuclear power facilities;

       •      the  closure of  non-profitable  coal  mines  and  sharply  reduced  domestic  coal
              consumption;

       •      a substantial increase in natural gas consumption from the level of 1990 consumption,
              13.3 billion cubic meters, to  15.1  in 1995, and 16.6 by year 2000.
Clearly, a program for rapid expansion of nuclear power facilities will require large capital investments,
and as in many other parts of the world, it is likely to be delayed by public debate over the location
of facilities and perceived dangers to the environment. In other words, this goal may not be achieved
in the near-term.

Closing  unprofitable mines is  a  logical step toward reducing  subsidized and unprofitable energy
production and consumption.  As noted in Chapters 2 and 5, some coal mines  have already been
closed and others have been identified and will be closed shortly. It is expected that some additional
down-scaling of operating mines is likely as the industrial sector is restructured.

Increasing the utilization of natural  gas in Czechoslovakia  will have a direct and rapid effect on the
economy and environment.  The breakdown of the CMEA and  movement toward world market prices
has caused the cost of imported natural gas consumed by Czechoslovakia in 1991  to increase by 350
percent over prices paid in 1990, and the cost is likely to  continue to increase.  The majority of the
natural gas consumed  is imported from the CIS.  The stability of this supply has been a concern  and
the price will strain the financial security of the industrial consumers. Czechoslovakia is now looking
into alternate suppliers with hopes of stabilizing supply and adding competition to the pricing system.
4.3  THE  NATURAL GAS SUPPLY

As noted in Chapter 1,  natural gas currently makes up  13 percent of the fuel mix, and its use  is
expected to increase. Given the closure of hard coal mines and the desire of the Czechoslovakian
government to reduce the use of brown coal and lignite, the market for natural gas is likely to expand.
However, the  choices of supply of natural gas are limited to relatively small domestic  reserves of
conventional natural gas, increased importation of natural gas from the CIS,  alternate  supplies of
conventional natural gas from  western European or African sources, or domestic coalbed methane.


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The UNECE Working Party on Gas (UNECE, 1991b) reports that the CSFR has 14 billion cubic meters
proven reserves of natural gas and an additional 15 billion cubic meters of undiscovered (prognostic)
reserves. Obviously, the annual use of natural gas is greater than the proven reserves, and additional
supply sources will continue to be a necessity.

Over the next few years, the most likely source to supply the growing demand for natural gas will be
the CIS.  Although the supply is unstable, it has and will continue to supply the bulk of the imported
natural gas to Czechoslovakia. As gas exploration and development moves progressively eastward
within the CIS, the increased cost of transmission will be passed on to the consumer. Moreover, as
the economics of gas supply undergoes change, there could arise the  need for Czechoslovakia to seek
additional gas suppliers among the EC, and to participate in some  of the pipeline expansion projects
in western Europe, which include new links between northern Europe and central and eastern Europe.
The time required to plan finance, and execute these projects may further impact gas costs and the
security of the gas supply. (UNECE, 1991b).
4.3.1  THE ROLE OF COALBED METHANE IN THE GAS SUPPLY

Coalbed methane development could provide the most timely and cost-effective alternative to increased
importation of conventional natural gas. The total coalbed methane resources in the OKR are estimated
to range from about 51  to 371  billion cubic meters. These resources comprise between  12 and 88
billion m3 of documented reserves and between 39 and 283 billion m3 of prognostic resources. Clearly,
all of this methane  is not recoverable, but even at a recovery factor of 30 percent the  amount of
domestic coalbed methane far exceeds conventional gas reserves. In addition,  Czechoslovakian  coal
mines emit 400 million m3 to the atmosphere annually. Much of the methane contained in the mineable
reserves of coal will be emitted  to the atmosphere if recovery and utilization is not increased.

At current world market gas prices of $145 US/1000 cubic meters, the  1990 mining emissions
represent a loss of  $58 million  US annually.  Even when the emissions reduction resulting from the
planned closure of Ostrava-area mines is taken into account, about 246 million cubic meters will still
be emitted annually, at a loss of about $36 million US annually.

Methane resources contained in the coal that  is not likely to be mined are estimated to range from 45
to 325  billion m3. These resources can be developed through stand-alone projects independent of
mining, like much of the U.S. coalbed methane production. For example, in the Black Warrior Basin of
Alabama, more than 2,100 wells produce coalbed methane, and most of them are unrelated to  coal
mining. In the San  Juan Basin of the western  U.S., unfavorable geological conditions prevent  coal
mining, yet more than 1,300 wells currently produce coalbed methane.

Additional assessment of the potential recovery of the coalbed methane resource in Czechoslovakia
will require that a program for drilling and testing be planned and executed. The results should then
be evaluated to further delineate the extent of the resource and its producibility. If the drilling program
indicated 30  percent recoverability for the methane contained in coal not likely to be  mined, the
estimated gross value of these recoverable methane reserves would be between  $2 billion  and  $14
billion U.S. The average world cost for discovery of new natural gas reserves is estimated to be $45.6
US per thousand cubic meters of reserves (UNECE, 1991b), so the cumulative cost of discovery of
these reserves would be between $616 million and $4 billion US. The net undiscounted value of the
unproduced gas would thus be between $1 billion and $10 billion US.
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Czechoslovakia's coalbed methane resources could be rapidly developed, if appropriate incentives and
market access are provided. Based on this initial analysis, it appears that the value of this resource can
best be exploited  by using it locally  (i.e.,  in the Ostrava-KarvinS region), or by storing it and using it
seasonally to offset peak demand both within and outside of this region.

Development of coalbed methane resources in the Ostrava-Karvina region  will have a positive impact
on Czechoslovakia's energy economy by  providing domestically available,  high quality natural gas to
industrial, commercial, and residential consumers, displacing imported natural gas. To optimize the
value of this resource, a cost effective plan for development should include:

       •      utilization of the existing pipeline infrastructure
       •      construction of additional  pipeline links to expand the regional market;
       •      expansion of storage facilities to provide reserves for peak demand periods

In addition, the environmental impacts will be significant. If Czechoslovakia is able to produce 1  billion
cubic meters of coalbed methane annually by the  year 2000, the environmental impacts could be as
follows:

       •      A  dramatic  reduction  in atmospheric mine  methane emissions, thereby helping to
              mitigate  global warming. If integrated methane  recovery systems were used and 70
              percent of the methane liberated by coal mining were recovered, methane emissions
              would  be reduced to about 74 million cubic meters annually (this estimate takes into
              consideration the planned closure of the Ostrava-area mining concessions).

       •      Significant reductions in emissions of S02, NOX, participates, and C02- For example,
              1 billion cubic meters of methane provides energy equivalent to about 1.3 million tons
              of OKR coal. Assuming an  ash content of 15 percent, 1 billion cubic meters of methane
              could displace enough hard coal to reduce paniculate emissions by about 195,000 tons
              annually.  Displacement of  brown coal,  coke oven gas, or town  gas with coaibed
              methane would also  benefit air quality.
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                                   CHAPTER  5

                                CASE STUDIES
5.1    INTRODUCTION
There are currently fourteen  operating  mine  concessions in the OKR.  In proposing future  coalbed
methane  recovery and utilization projects, it is useful to consider that, as stated in Section 2.2.1, four
concessions, Ostrava, Hermanice, Odra, and  Fucik are either now in the process of closure, or their
closure is likely by 1995. The Sverma concession was closed as of January 1992. Since the amount
of methane being emitted from these mines is decreasing and will be zero in the near future,  projects
aimed at  recovering and utilizing  methane from these five mines are outside the goals  of this study,
although  they may be of interest  to other agencies or companies.

Some of  the remaining 10 concessions could  be subject to closure in the future, but at present such
plans have not been announced.  Methane is currently being recovered and utilized from all of these
concessions, as shown in Table 10. Substantial opportunities still exist for increased methane recovery
and utilization at these mine concessions, however. Of these ten concessions, the four which  emit the
most methane (CSA, CSM, Starfc, and Darkov)  presently account for 47  percent of all methane
liberated, and 42 percent of all  methane emitted  to the atmosphere  annually from coal mining in
Czechoslovakia. Based on their current and historical coal production (Table 6), it appears that at least
three of these four concessions will remain open.

When the annual liberation and emissions of the five concessions to be closed are excluded, the top
four emitters account for 68 percent of the methane liberated and emitted annually in Czechoslovakia.
While all  of the 10 concessions  presently expected to remain open in  Czechoslovakia are potential
candidates for improved methane recovery, it seems that priority should be  given to the top four
emitters in order to achieve the most immediate reduction in methane emissions. A brief profile of each
of these concessions follows.


5.2   CSA CONCESSION  CASE STUDY


5.2.1  PRESENT CONDITIONS

The  CSA mine concession is located in the northeastern part of  the OKR near the city of KarvinS
(Figure 9). There are currently two mines operating within the CSA concession, the Jan Karel mine
which commenced operations in 1859 and has an average mine depth of 800 m, and the Jindrich mine

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which commenced operations  in 1852 and has an average mine depth of 790 meters. The CSA
concession also has a coke plant and power plant on location.

Coal types within the concession are high volatile bituminous B and C with average seam thicknesses
ranging from 1.5 to 5.5 m at the Jan Karel Mine, and 5 to 6 m at the Jindfich Mine.  Coal production
increased slightly from 1.64 million tons in  1988 to 1.76 million tons in 1990.

More methane  is liberated from  the CSA  concession  than  any other mining  concession  in
Czechoslovakia. Emissions increased from approximately 40.5 million cubic meters annually in 1989
to 68.3 million cubic meters in 1990. In-mine (Stage II) and gob (Stage III) recovery methods are in use
at the mine concession,  but only 15 percent of the methane liberated by this concession is drained.
In 1990, CSA sold  10 million  cubic meters of methane (99 percent of that recovered) to SMP for
distribution to consumers, yet it purchased 22 million  cubic meters of methane from SMP for use in
its power plant. This mine concession emits the most methane to the atmosphere (57.9 million cubic
meters in 1990). About 38 cubic meters of  methane are liberated per ton of coal mined from the CSA
concession.

Methane from the mine has been used in its heating plant boilers, but consumption of the boilers is
irregular and  interrupted, possibly due to inadequate metering and control  systems,  resulting  in
emission of much  of the  methane to the atmosphere. The mine presently finds  it more economical  to
use coal dust and  coal waste rock in the boilers.

The  current mineable balance coal  reserves for the CSA concession are 193 million tons, and total
documented coal resources are 450 million tons (Table  6). The estimated methane reserves associated
with the mineable balance coal reserves are 7.5 billion cubic meters, and 17.5 billion cubic meters of
methane are associated with the total coal  resource.
5.2.2 PROJECT TYPES

Mines of the CSA concession are candidates for increased methane recovery via surface drilling (Stage
I)  and  improved in-mine and  gob drainage methods  (Stages  II  and III).  Furthermore,  since the
concession has a power plant, it may be a candidate for ventilation air use (Stage IV). In 1991, CSA's
thermal power plant used 42 million cubic meters of coke oven gas but only 14 million cubic meters
of coalbed methane, both purchased from SMP Any increase in methane  production could offset the
need for coke oven gas.  As noted in Section 5.2.1, mine management reported that irregular and
interrupted consumption by the boiler discouraged increased  use of coalbed methane in the power
plant. Improved metering and control systems could perhaps  solve the problem. A large number of
additional methane utilization opportunities  exist outside of the mining  enterprise, as described in
Section 3.2.1.

Prior to initiating a pre-mine drainage program, it would be important to consider that water may be
coproduced from pre-mine drainage wells (Appendix C).  According to 1990 data supplied by the Dept.
of Ecology of OKD, the CSA mines pumped an average  of 0.9  cubic meters of  water for every ton of
coal produced. The amount of total dissolved salts (presumably chlorides and  sulfates) in this water
averages 20,342 milligrams per liter (mg/l). This is highly saline; generally, water with a chloride and
sulfate concentration  in excess of 1,800 mg/l is considered unfit even for  industrial use. The is
discharged directly into the Odra River, without any treatment.
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5.3   6SM CONCESSION CASE STUDY

5.3.1 PRESENT CONDITIONS

The CSM concession, the only mining concession independent of  OKD, is still a state-controlled
enterprise, although it is preparing for privatization. CSM is located in the northeastern part of the OKR,
adjacent  to the Polish  border south of the city of KarvinS. There are  two mines operating within the
CSM concession, CSM North and CSM South. Mining operations commenced  in 1968 and the average
mining depth is 770 m.

The coal  rank is primarily high volatile bituminous A and the average mined seam thickness is 1.77 m.
The total exploited area in the concession is 22 square km and 10  coal seams are currently being
mined. Mining methods used are longwall and subsidence mining. Coal production has decreased from
2.68 million tons in 1989 to 1.91 million tons in 1990. Eighty-five percent of coal produced is coking
coal, which is sold to coking plants and iron works in both the Czech and Slovak Republics. About 10
percent of the coal is exported.

CSM emitted 43 million cubic meters of methane to the atmosphere in 1990. Thirty-one percent of the
methane  liberated by  this mine  was recovered by in-mine drainage systems, and all  the drained
methane  (nearly  20  million  cubic meters in  1990) was used  by  the  heating plant at the mine
concession. This  is not enough fuel to meet fuel requirements of the heating  plant. In the summer,
additional coalbed methane  is purchased from the Darkov mining concession, which is sold at a
reduced price because it would otherwise be vented to the atmosphere. In the winter, 6 million cubic
meters of natural  gas is purchased from the CIS.

The current mineable balance coal reserves for the  CSM concession are 214.4  million tons, and total
documented coal resources are 532 million tons (Table 6). The estimated methane reserves associated
with the  mineable balance coal reserves are 7.0 billion cubic meters, and 17.4 billion cubic meters are
associated with the total coal resource. About 33 cubic meters of methane are liberated per ton of  coal
mined at CSM.

There are currently no electric power plants at the  CSM concession.
5.3.2 PROJECT TYPES

The applicability of vertical mine pre-drainage (Stage I) should be investigated, as should improved
underground drainage methods (Stage II). If methane recovery can be expanded, gas would not have
to be purchased. Expansion of an existing gas storage field such as 2ukov (Figure 15) could also help
solve the problem of seasonal supply variations. Currently, gob production  (Stage III) is not efficient
due to leaking barriers, which are built to isolate the gob areas from the active workings. Improvements
could be made to increase the quality of gob gas by better sealing these barriers, to prevent the inflow
of mine air into the  gob area.  Again, this would offset the need to purchase gas from other mines or
from the CIS.

Monitoring of the volume and composition of mine waste waters should be considered  in order to
prepare for any water that may be co-produced with surface coalbed methane wells (Appendix C). The
volume of water currently discharged from mining operations averages  1.1 cubic meters of water for
every ton of coal mined. The amount of total dissolved salts in this water averages 12,341 mg/l. The
water is discharged directly from the mine into local streams, and is  detrimental to water quality.


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5.4   DARKOV CONCESSION CASE STUDY

5.4.1  PRESENT CONDITIONS

The Darkov concession is located directly between the CSA and CSM concessions (Figure 9). There
are currently three operating mines; the Barbara mine which commenced operations in 1890 and has
an average mine depth of 780 m, the Gabriela mine which commenced operations in 1852 and has an
average mine depth of 720 m, and the Darkov mine which commenced operations in 1982 and has
an average mine depth of 550 m.

The Darkov concession covers approximately 15 square km.  Coal rank  within the concession is high
volatile bituminous B and C with average seam thicknesses ranging from 2 to 6 m at the Barbara Mine,
2 to 3 m at the Gabriela Mine, and  1.5 to 3 m at the Darkov  Mine. The Darkov concession produces
more hard coal than any other concession in Czechoslovakia. Production was 3.0 million tons in 1990,
down from 4.6 million tons in 1989.

In 1990, about 40 percent of the methane liberated by the Darkov mine was drained, and nearly 97
percent of the drained methane was utilized. More than 36.2 million cubic  meters of methane were
emitted to the atmosphere, however (Table 10). Of the total methane utilized, some was used at the
Darkov concession, but most of it was used by the CSM concession and  other consumers. The Darkov
concession is now utilizing more  methane in its new coal-slurry drying room. It also plans to continue
providing methane to CSM. Methane is not drained from two of the Darkov concession mines, Barbara
and Gabriela, because their coal  tends to spontaneously combust and thus  mine engineers prefer to
keep the methane concentration high. For fire prevention, nitrogen supplied by pipeline from Nova Hut'
is pumped into gob areas, and the resulting mixture of nitrogen and methane is ultimately released to
the atmosphere via the ventilation system. Mine engineers are skeptical of introducing surface drainage
in advance of mining  or degasifying gob  areas, as they believe these methods would not reduce the
methane content to less than combustible concentrations. A history of fatal mine fires has made safety
a top concern at these mines.

The current  mineable balance coal reserves are 324 million tons, and the total documented  coal
resource is 583 million tons (Table 6). The estimated methane reserves associated with the mineable
balance coal  reserves are 6.4 billion cubic meters, and 11.5 billion cubic meters of methane are
estimated in the total coal resource. About 20 million  cubic meters of methane are liberated per ton
of coal mined from the Darkov concession.

There are currently no electric power plants located at the Darkov Concession. Their power needs are
supplied by four sources  within the OKR.


5.4.2 PROJECT TYPES

Despite the  reluctance of mine engineers, it may be worthwhile to evaluate the potential for
degasification of workings that are presently considered to be a safety hazard due to spontaneous
combustion, as long as safety remains the utmost priority. Sealing of gob or abandoned areas in the
Gabriela and  Barbara mines could  eliminate or control  heating  in mined seams,  thus  reducing the
potential for spontaneous combustion. In addition, detection systems  to monitor heating  should be
installed, and the adequacy of the ventilation systems should  be assessed and possibly reorganized to
reduce pressure leaks (Feng et al, 1973). These adjustments might eliminate  the need to keep methane


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concentrations high, which can be a safety hazard  in itself. Surface drainage in advance of mining
(Stage I), drainage during mining (Stage II), and gob drainage (Stage III) could then be undertaken in
the Gabriela and Barbara mines. In addition, implementation of Stage I methane recovery at the Darkov
mine, as well as improved Stage II and III recovery, would further reduce emissions.

Presently, 400 million Kcs (13 million US) are spent annually by the Darkov concession for power. Any
amount of recovered methane that could be used to  generate power, either from a small 1C engine or
a gas turbine, would help the economics of these mines. The status of the inactive gas turbine located
at the concession  should be investigated, to decide if it would be technically and economically feasible
to operate this turbine using coalbed methane.

As with the other concessions, the potential for co-production of water along with methane from
surface wells should be considered (Appendix C). The mine produces 0.25 m3 of water per ton of coal.
It has a total  dissolved salt content of  18,980 mg/l, and is discharged directly to streams, adversely
affecting water quality.
5.5   STARJ6 CONCESSION  CASE STUDY

5.5.1 PRESENT CONDITIONS

The Staf it concession is located in the southern part of the OKR near the town of Frydek-Mfstek. There
are currently three mines operating  within the concession, StaffC I, StaffC II, and StaffC III. Operations
at the concession began in 1970, and the mines have  an average depth of 750 m.

The StarfC concession covers approximately 40 square  km, and an extension of another 30 square km
has been proposed. The coal rank is high volatile bituminous A and is used almost exclusively for
coking.  Coal production is below average due to the complex geology of the region (steeply dipping
beds  up to 40°) and thin seams (averaging 88 cm but as thin as 55 cm). Production has decreased
from  1.45 million tons in 1 988 to 1.29 million tons in  1 990.

Mines of the StafiC concession emit  nearly  31  million cubic meters of methane to the atmosphere
annually (1990). Methane is drained via in-mine (Stage II) and gob (Stage III) recovery techniques. Each
year,  about 30 million cubic meters of methane are drained from the mine, and of this, 28 million cubic
meters are utilized, partly by the  mine and partly by outside consumers. In the winter, the mine does
not produce enough gas to meet  the needs of its own  boiler rooms, while in the summer, it does not
need  all of the gas it drains, and thus vents the remainder to the atmosphere.

The current  mineable balance reserves are 226 million tons, and the total documented coal  resource
is 353 million tons (Table 6). The estimated  methane reserves associated  with the  mineable balance
coal reserves are  10.4 billion cubic meters, and 16.2 billion cubic meters of methane are associated
with the total coal resource.  Thirty-one million cubic meters of methane are liberated per ton of coal
mined from  the StafiC concession.
5.5.2  PROJECT TYPES

Mine officials are considering selling the summer surplus of coalbed methane to the nearby Biocel wood
products plant, or to the Nova Hut' steel mill. The potential to increase methane recovery using pre-


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mine (Stage I)  and improved  in-mine and  gob drainage  methods  (Stages  II  and III)  should  be
investigated. As demand increases  from  these consumers  and other consumers within the region,
increased coalbed  methane production may be economical.  Sale of the gas could begin immediately
because the mines are already linked to the pipeline distribution system.

Development of a nearby facility for storing surplus summer gas has also been proposed in the depleted
StaffC gas  field (Figure  15). Further  investigations into increasing the potential for gas storage
capacities with the OKR should be considered.

The potential for co-production of water along with methane from surface wells should be considered
(Appendix C). According to 1990 data supplied by the OKD Department of Ecology, the StaffC mines
pumped an  average of 0.25 cubic meters of water for every ton of coal  mined.  The amount of total
dissolved salts in this water averaged  7,922 mg/l. The water is initially pumped into storage  ponds
located near the mine, but is eventually discharged into the nearest stream. The discharge of these
waters is detrimental to the water quality  of the streams. Alternative disposal methods are discussed
in Appendix C.
5.6  EXPLORATION AND DEVELOPMENT OPPORTUNITIES

Opportunities for coalbed methane exploration and development in Czechoslovakia appear promising.
For exploration companies and investors wishing to pursue opportunities in the Czech Republic, a
general procedural outline follows,  based on potential investor experience. Further information can be
found in Mining Act No. 44/1988, issued by the Czech National Council, and in Sack (1991).

A foreign company wishing to explore for coalbed methane should contact  the Department of Raw
Mineral Policy at the Ministry for Economic Policy and Development of the Czech Republic, in Prague.
The company must present an exploration and development proposal, and have sufficient resources
to finance the proposal. If such plan is approved by the Department of Raw Mineral Policy, the foreign
company must then form a joint venture with a Czech company operating in the locality to be explored.
After  a joint  venture agreement is reached, an exploration license  is granted to  the  joint venture
company.
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                                  CHAPTER  6

        RECOMMENDATIONS FOR  FURTHER ACTION
Agencies such as the Federal Ministry of Economy, the Ministry for Economic Policy and Development
of the Czech Republic (MEPDCR), and the Czech Ministry of Environment, as well as the state mining
enterprise OKD and its daughter companies, have recently indicated a keen interest in the potential for
coalbed methane development and utilization in Czechoslovakia.  Based on the results of this study, it
is clear that development and  utilization of coalbed methane in Czechoslovakia should be  further
investigated. All possible mechanisms for encouraging or facilitating coalbed methane usage should
be evaluated,  appropriate  policies and incentives should be developed,  and coalbed methane
development and utilization should be a priority in Czechoslovakia's energy restructuring program.

Foreign governments  and international agencies,  as well  as foreign  companies,  can  assist
Czechoslovakia with  this process by providing technical  and financial assistance for coalbed methane
projects. Follow-up efforts should be designed to inform, educate, and train Czechoslovakian technical
experts, as well as appropriate government personnel, regarding the potential role coalbed methane
could play in the country's energy economy. Subsequent studies should also evaluate the feasibility
of coalbed  methane development and utilization  at  specific sites,  ultimately leading  to  the
implementation of  demonstration projects.


6.1  FOLLOW-UP TECHNICAL ASSISTANCE ACTIVITIES


6.1.1 COALBED METHANE CLEARINGHOUSE

A coalbed  methane clearinghouse funded by the U.S. EPA has been established in Katowice, Poland
to address information needs of Poland (Pilcher et  al, 1991). This clearinghouse, which was modeled
after the Gas Research Institute's  successful coalbed methane  clearinghouses in the U.S., could be
expanded to include  not only Poland, but Czechoslovakia and other countries in central and  eastern
Europe that have coalbed methane potential. If this  clearinghouse  is successful, identical facilities could
then  be set up  in each of the countries.
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6.1.2 TRAINING

Training programs will be  necessary to educate both  mining  industry technical  personnel  and
government representatives. For the technical personnel, training should include methane recovery and
use (emphasizing pre-mine drainage from the surface)  and resource  assessment.  Programs for
government representatives could include developing appropriate environmental and other regulatory
frameworks to ensure safe implementation of methane recovery projects,  legal and economic training,
training in project feasibility assessment, and training related to project approval processes. These
training programs would be developed in conjunction with the development of the clearinghouse and
other follow-up studies. Agencies interested in providing training should work closely with appropriate
Czechoslovakian representatives to identify needs and design efficient programs.


6.1.3  METHANE RECOVERY TECHNICAL ASSESSMENT

The applicability of several methane recovery approaches should be assessed at OKR mines, including
methane pre-drainage using vertical wells, intensified in-mine drainage, and post-mining drainage using
in-mine and vertical gob wells. In assessing alternative technical approaches, the opportunity to both
increase gas quantities  and improve gas quality  (concentration) should be evaluated.

In the  initial  phase, the program would include  detailed evaluation of current and possible methane
drainage practices at selected  OKR mines. Methane drainage  consultants, working closely with OKD
and mine officials, would review geologic and other data, mining plans, methane drainage designs, and
methane production information. This team would identify new methane  recovery approaches that
should be tested. The final output of the team would be an experimental program of methane recovery
that would be undertaken in the pilot phase at one or more mines.


6.1.4  STUDY  OF POTENTIAL FOR METHANE USE IN POWER GENERATION

Methane utilization consultants, working  closely  with Czechoslovakian power generation experts,
should assess the potential for methane  use at thermal and electrical power generation facilities in the
Ostrava-Karvina" region. Where warranted, recommendations should be  made as to modifications to
existing power plants, and/or development of new power facilities. Options to consider include cofiring
coal and methane, converting  boilers to intermittent use of methane, use of methane  in fluidized bed
combustion, methane use in internal combustion engines, and use of methane in gas  turbines.

Even with  expanded mine methane recovery, much of the methane liberated will be in ventilation air,
at concentrations of  less  than 1 percent. Therefore, in assessing the potential for methane  use in
power generation, use of ventilation air as combustion air in  nearby boilers should be considered in
terms of economic and technical feasibility. At U.S. gas prices of about  $50/thousand cubic meters,
these   techniques are not currently  economically viable. At higher gas prices, however,  these
technologies may be justified.  For example, in Czechoslovakia imported gas prices are currently over
$100/thousand  cubic  meters. In other cases,  mines  may also release gas recovered  by drainage
systems because  it does not meet  minimum quality requirements  of about 35 percent.
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6.1.5 GAS ENRICHMENT

As discussed in Section 3.2.4, two types  of gas enrichment technologies may be well suited to
enriching low-methane gas recovered by mine methane drainage systems. These technologies, namely
pressure-swing adsorption and membrane gas separation, have proven feasible for feed gas streams
containing 70 to 80 percent methane. However, the feasibility of enriching low-methane gas (30 to
50 percent methane) has not been tested.

The economic viability of enriching this low-methane gas to pipeline quality may be enhanced by the
following factors:

       •      The fact that gas prices in Czechoslovakia are relatively high (compared to the  U.S.);

       •      The recently enacted Czech  Hydrocarbon Law  imposes significant costs on methane
              emissions, further  encouraging the use of gas recovered from mines; and

       •      The cost of the feed  gas is effectively zero, since it would otherwise be vented to the
              atmosphere.

In preparing a pilot project, the technical  and  economic feasibility of using  these gas enrichment
methods on  low methane gas should be  assessed. Then, the most promising technologies should be
selected and demonstration projects implemented.


6.1.6  STUDY OF POTENTIAL FOR INCREASING UNDERGROUND GAS STORAGE

It may also be desirable to evaluate the potential for  increasing the underground gas storage capacity
of the OKR region, as the ability to store coalbed methane to allow for seasonal fluctuations in demand
could make  it more  economical to use. Options for increasing  gas storage  include enlarging existing
underground storage facilities, developing  new facilities in  depleted natural gas reservoirs,  and
developing  new facilities  in abandoned mines.  Gas storage  consultants,  working  closely with
Czechoslovakian gas storage experts,  should identify potential gas storage projects in the OKR.

The technical and economic feasibility of a proposed gas storage project would need to be assessed.
One aspect  of such  an assessment would be a comparison of the cost of importing natural gas from
the CIS, or of using  other fuels such as coal, versus the potential benefits of expanding underground
storage for coalbed  methane.


6.2   FOLLOW-UP POLICY AND GOVERNMENT INITIATIVES

In addition to technical assistance activities,  establishing appropriate policies and initiatives pertaining
to several related areas would further encourage methane recovery. Activities important in establishing
these policies and initiatives include:


6.2.1  IMPACTS ASSESSMENT

As part of the  effort to further assess coalbed methane development in the OKR, it is essential that
the potential impacts be fully examined. This assessment should consider the impacts  of both

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expanded methane recovery at active coal mines, and coalbed methane production using vertical wells
in non-mining areas. Thus, it will provide information that is useful in managing the development of the
types of methane recovery activities that are encouraged through this project and also those that may
proceed commercially. Among the items that should be considered are

       • Environmental Impacts   air, water, and soil quality, and natural habitats

       • Socioeconomic Impacts - changes in land use, employment, and economics

       • Infrastructure Impacts -  transportation services, including pipelines

This assessment should be prepared by a team of consultants  working closely with local personnel
from the Czech Ministry  of  Environment, OKD, mine officials,  and local  planning groups.  The
assessment should be undertaken in a manner that transfers to in-country personnel the experience
of preparing such impact statements.


6.2.2  REGULATORY ASSESSMENT

The adequacy of existing regulations, fees, and fines affecting coalbed methane development should
be evaluated. The assessment would include an examination of the structure and suitability of coalbed
methane pricing, ownership, and leasing laws. It should also include an examination of project approval
processes and  permitting  requirements.  Environmental regulations  to be  evaluated  include those
regarding water disposal, siting, and land rehabilitation.

Based on this assessment, appropriate recommendations for modifications to existing regulations, as
well as implementation of new regulations, could be made.


6.2.3  MARKET AND INVESTMENT ASSESSMENT

A market and investment assessment should be widely disseminated among government agencies and
the private sector, as part of a general effort to promote mutual communication between government,
mining  officials, and potential investors  in coalbed  methane projects.  Increased awareness of
opportunities could help facilitate joint ventures between coal mines and gas production companies.

Potential markets for methane produced by active coal mines, as wells as methane produced by coal
reserves, should be assessed, and the investments required to bring this gas to market identified. With
respect to the  gas recovered  by active  coal mines,  the evaluation  should  include assessment of
utilization options for low grade (less than 30 percent methane), medium grade  (30 - 90  percent
methane) and high grade (greater than 90 percent methane) gases. Potential users should be identified
and investments for gas transmission facilities and/or conversion of possible customers from coal to
gas described. The investment requirements for gas production should also be identified.

This assessment should also include a financial analysis to establish the economic feasibility of coalbed
methane development relative to other  options. For this  analysis, the  costs  of the necessary
production, transmission, and utilization facilities should be determined,  as well as the value of the
produced gas. This analysis should be conducted with respect to both gas recovered in active mining
operations and gas produced from coal seams in non-mining  areas.
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As with the impact assessment, a team of consultants should work closely with OKD and other mining
experts,  the Czech Ministry of Environment, and local planning agencies. In addition to making the
necessary assessments,  the assessment methodology  should be  transferred  to  the  in-country
personnel.

Based on the results of the market and investment assessment, appropriate incentives for facilitating
coalbed methane development should be considered. Among the types of tax credits  which could be
considered are those encouraging the production and  sale of coalbed methane,  as  well as credits
rewarding mines for not venting coalbed methane.
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         APPENDIX A -  USE OF THE KRIGING METHOD FOR GRIPPING
                              ANP CONTOURING PATA
The  Kriging method  was used  to grid and contour the data  presented  in Figure 10.  Kriging is  a
geostatistical method that the mining industry uses to estimate the variability of an ore body and
predict the quality of the ore as it is mined. This method takes  into account that geologic data is not
randomly collected and therefore a certain amount of variance in the values of the sample population
is due to its geographic location.

Geologic data is not random because samples taken for testing or evaluation are often selected due
to ease of retrieval, or simply because most boreholes or mines are located with the anticipation of
encountering an "ore body" or "pay zone".

Ore bodies, or pay zones, are economically recoverable reserves, and are by definition anomalous. They
often comprise concentrations of the desired  element  many times the background values of those
contained in the surrounding rock. So a method  for statistical analysis of a data set that has been
preselected because of its anomalous values was developed by a South African mining engineer named
Krige.

Implementing the concept of regionalized variables (i.e., the variance of values due to their location in
space), Krige developed methods of taking irregularly spaced data from the field and estimating values
at points that would be encountered during future mining or exploratory drilling. In other words, Krige
gridded an area of interest and estimated the values at each grid point, which incorporated variance
due to location of the sample in space (Krige and Rendu, 1975).

Sometimes, maps of data that have been gridded and contoured using the Kriging method will contain
several data points that fall outside what would, in a conventionally contoured map, be the appropriate
contour interval; for example, the number "20" could appear between the "30 to 40" contour interval.
This is because the contours are drawn on grid points that  were calculated mathematically by the
Kriging process. Figure 10 was created by "Kriging" with respect to all points, and consequently the
contours reflect the contouring program's mathematical fit of the predicted values at each grid point,
not necessarily the position of individual data points. Therefore, the appearance of a number outside
the "appropriate" contour interval does not reflect an error in the gridding or contouring process.

Kriging is a good means of determining spatial  trends in specific emissions. These trends also tend to
correlate with  lithological and structural trends. For example, in the Upper Silesian Coal  Basin, areas
of high specific emissions correlate with  areas where the Carboniferous formations are overlain by  a
thick sequence of Miocene strata that has not been penetrated  by faults. This suggests that the
Miocene layer  may help to trap the methane in the coal  and surrounding porous rocks.
                                            A-1

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                   APPENDIX B - COMPARISON OF RESOURCE
                           ESTIMATION METHODOLOGIES
Table B-1  shows the  variability caused by using various methodologies to estimate  resources of
coalbed methane in Carboniferous basins of the United States, Poland and Czechoslovakia. In Part I
of the table, it can be seen that in general, US resource estimates by Byrer et al (1987) and ICF (1990)
are higher than estimates made by Brown et al (1991) of the Potential Gas Committee. The estimates
of Byrer and ICF are potential resource estimates, without overly strict limits dictated by technological
restraints. Estimates developed by the Potential Gas Committee are more conservative, reflecting the
limits of presently available technology and present-day  economics.  Obviously both estimates are
useful. The reader should note that the Central Appalachian Basin contains coal resources comparable
to those found in  the Upper Silesian Coal Basin  (USCB),  and that the magnitude of the coalbed
methane resource is also comparable.  Comparison of the amount of methane liberated per ton of coal
mined in these two basins  suggests that the coals of the Central Appalachian Basin are even gassier
than those of the USCB.

Part  II of the table allows comparison  of the variables shown for the USA in Part I  with the USCB in
Poland and Czechoslovakia. It also shows the results of estimates  of the coalbed methane  resource
using:

       •      methane contents based on desorption data from Poland

       •      specific emissions (methane liberated per ton of coal mined),

       •      specific emissions, adjusted for factors that limit the amount of gas contributed to the
              volume emitted into the coal mine by coal seams.

Part  III of the table allows the reader to compare the resulting resource  densities for the Polish part of
the USCB with those calculated by Kotas et al (1992). Kotas'  calculations estimate methane resources
contained in a "standard kilometer of area"  in  unmined resource areas that will be let as coalbed
methane concessions. His  estimate is based on thousands of desorption data values from more than
1000 boreholes, unadjusted for lost gas. Note that the maximum resource density is reasonably close
for all three methods. None of the methods compared in this part of the table include limits posed by
economics or technology.
                                            B-1

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                              TABLE B-1.  COMPARISON OF RESOURCE ESTIMATES FOR SELECTED CARBONIFEROUS COAL BASINS
 PART I. UNITED STATES COAL BASINS
BASIN
AREA OF
HIGHEST
METHANE
POTENTIAL
(km)*
COAL RESOURCE (BILLION TONS)
(BYRER ETAL, 1987)
MIN. MAX.
(ICF, 1990)
METHANE CONTENT (m3/!)'
(BYHER ETAL, 1987)
MIN. MAX.
{ICF, 1990)
MIN. MAX.
SPECIFIC EMISSIONS
/T)
(DEPASQUALE, 1992)
MIN. MAX.
ESTIMATED TOTAL GAS-IN -PLACE (BILLION m3)
(BYHER ETAL, 1987)
MIN. MAX.
(ICF, 1990)
(BROWN ETAL. 1991)
MIN. MAX.






CD
rO
NORTHERN
APPALACHIAN
CENTRAL
APPALACHIAN
ILLINOIS
BLACK WARRIOR
PART II. THE UPPER

11,600

10,400
11,140
17,600
SILESIAN COAL

N/A

73.0
N/A
N/A
BASIN

367.2

109.0
18.4
33,5
(POLAND AND

319.3

13.6
331.1
56,2

2.5 13.9 0.09

3.9 12.5 1.1
0.9 4.7 1.0
0.2 18.6 1.6

13.8

21.2
21.7
16.8

22.4 42.0 N/A 1726 1726 58

44.2 81.9 283 1358 142 50
7.0 10.2 38 597 597 34
85.3 166.0 N/A 566 566 85

624

119
156
269
CZECHOSLOVAKIA)
BASIN
AREA OF
HIGHEST
METHANE
3OTENT1AL
(ton)'
COAL RESOURCE*
(BILLION TONS)
(MEPNRF, 1989 AND MEPDCR, 1991)
MIN. MAX.
METHANE
CONTENT1
(m3/!)
MIN. MAX.
SPECIFIC EMISSIONS
(mVT)
WEIGHTED
MIN. MAX. AVERAGE
ESTIMATED GAS-IN -PLACE (BILLION m3) CALCULATED BY: »
SPECIFIC EMISSIONS
10% OF 65% OF
UN- SPECIFIC SPECIFIC
ADJUSTED EMISSIONS EMISSIONS
ASSUMED GAS CONTENT
4.4 23.0
m3/T mVT
UPPER SILESIAN (POLAND) 5,300 30.0 123.7 4.4 23 0.01 46.03 12.3 1522 152 989 544 2845
UPPER SILESIAN (OKR) 1,200 3.0 16.1 4.4 23 8.21 86.80 31.7 511 51 332 71 371
 UPPER SILESIAN (ENTIRE)
6,500
                                       33.0
                                                139.8
                                                                      4.4
                                                                                   23
                                                                                                                     2033
                                                                                                                                 203
                                                                                                                                         1321
                                                                                                                                                             615
                                                                                                                                                                          3216
 PART III. COALBED METHANE RESOURCE DENSITY IN THE POLISH PORTION OF THE UPPER SILESIAN COAL BASIN
BASIN
RESOURCE DENSITY (MILLION nf / km2) BASED ON:
SPECIFIC EMISSIONS
10% OF 65% OF
UN- SPECIFIC SPECIFIC
ADJUSTED EMISSIONS EMISSIONS
ASSUMED GAS CONTENT
4.4 23
m'/T rnVT
ACCORD-
ING TO
KOTAS ET AL
(1992)
MIN. MAX.
UPPER SILESIAN (POLAND)
                           287
                                        29
                                                  187
                                                                     103
                                                                                  537
                                                                                          188    240
' As measured by desorptlon tests. Note that values for Poland represent actual desorption measurements. No desoiption measurements from the OKR were avallable.so It was assumed that values would be similar to those
measured In Polish coals.

2 As reported in Pilcher et al, 1991, and the present report. Note that the maximum coal and coalbed methane resources of the Polish part of the basin are slightly larger here than in Pilcher et al, 1991; due to a translation error,
non-balance coals and associated methane resources were Inadvertently omitted from Pilcher et al, 1991.
3 See discussion in Section 2.3

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              APPENDIX C - WATER DISPOSAL CONSIDERATIONS
Disposal of water produced by OKR mines poses a serious environmental problem. About 20 million
cubic meters of water, containing more than 200 thousand tons of dissolved salts, are produced by
OKR mines each year, nearly all of which is discharged to the Odra drainage. Table  B-1 shows the
quantity and quality of water produced by these mines. The Czechoslovakian government is seeking
solutions to the mine water disposal problem,  and is considering implementation of environmentally
sound water management methods. There are  many options, some of which are already in use in the
Polish part of the Upper Silesian Coal  Basin.

The  coal layers themselves are generally considered to be dry; the primary source of water is the
Miocene Detrit layer, a sandstone and  conglomerate aquifer overlying the Carboniferous. Water enters
the mines via fractures which are in communication with the Detrit  layer.

When considering a coalbed methane drilling program in any region of the world, it must be recognized
that production of the gas often  results in coproduction of water present in the coal seams. The
volume of water produced depends on  the hydrogeologic characteristics of the coal-bearing formations,
and  it is difficult to predict this volume when  planning exploration in a  new area. It is possible that
coalbed methane  production in the OKR will also entail water production, but given the structural
complexity of the region, the volume of water produced  could very widely in different parts of the
district. It is also difficult to  predict the salinity of the water which  may be produced, but it is likely
that it will resemble that produced by nearby coal mines.

It is therefore difficult to predict how  much, if  any, water would be produced from coalbed methane
wells in the OKR or other parts of Czechoslovakia,  but the potential for water production and the need
for environmentally sound disposal  is an important consideration. Fortunately, there are many
economically and environmentally successful water treatment and/or disposal methods that could be
applicable to both mine water and coalbed methane water disposal. These methods include injection
of saline water into wells (shallow or deep, depending on the circumstances); treatment of saline water
by reverse osmosis, desalination,  or electrodialysis; or a combination of these methods. These  and
other saline water management techniques are discussed  in Wacinski et al (1992).

Historically, saline water produced from coal mines in the Upper Silesian  Coal Basin has discharged to
rivers, with little or no treatment.  Because this practice has had severe environmental and economic
consequences, programs aimed at improving management of saline mine water are being formulated.
If saline water is co-produced with coalbed methane, it would be advantageous to jointly dispose of
water produced by mines and coalbed methane wells. Some saline water treatment systems, such as
desalination plants, could be fueled by coalbed methane.
                                            C-1

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                TABLE C-1. QUANTITY AND QUALITY OF WATER PRODUCED FROM OKR MINE
          CONCESSIONS, AND VOLUME PRODUCED RELATIVE TO COAL PRODUCTION (1990 DATA)
WATER
DISCHARGED COAL
MINE (THOUSAND PRODUCTION
CONCESSION CUBIC METERS) (kT)
ODRA*
SVERMA*
HERMANICE*
OSTRAVA*
FUCIK*
CSM
CSA
DOUBRAVA
FRANTISEK
9 KVETEN
DUKLA
PASKOV
DARKOV
STARIC
LAZY
3,002.6
1,697.4
1,241.6
2,092.0
2,187.9
2,054.4
1 ,602.0
931.4
324.1
428.3
568.4
218.2
732.5
319.1
161.9
852.3
606.2
496.0
957.8
1,281.1
1,911.9
1,761.5
1,293.4
715.3
1,137.4
1 ,769.3
720.1
2,945.9
1,288.5
1,998.2
TOTAL WATER PRODUCED
DISSOLVED PER TON OF
SALTS COAL MINED
fTONSL (mVTON)
16,019
8,324
10,849
10,602
34,055
25,354
32,587
36,339
1,803
1,996
21 ,828
1,585
13,903
2,527
657
3.52
2.80
2.50
2.18
1.71
1.07
0.91
0.72
0.45
0.38
0.32
0.30
0.25
0.25
0.08
TOTAL
DISSOLVED
SALTS
(mg/l)
5,335.0
4,904.0
8,737.9
5,067.9
15,565.2
12,341.3
20,341.4
39,015.5
5,563.1
4,660.3
38,402.5
7,264.0
18,980.2
7,919.1
4,058.1
o
(0
    * CONCESSIONS WHOSE MINES ARE IN THE PROCESS OF BEING CLOSED OR ARE LIKELY TO BE CLOSED BY 1995
     (SVERMA MINE CLOSED JANUARY 1992)
                              SOURCE: OKD DEPARTMENT OF ECOLOGY, OSTRAVA

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