United States
Environmental Protection Agency
Office of Air and Radiation
6207-J
EPA-430-N-00-004
Spring 2007
COALBED METHANE EXTRA
A publication of the Coalbed Methane Outreach Program (CMOP)
www.epa.gov/coalbed
VM3
OUTREACH
PROGRAM
Project Update: VAM Technology Demonstration Project
Begins Operation This Spring
U.S. Environmental Protection Agency's (EPA)
Coalbed Methane Outreach Program (CMOP) is
cooperating with the U.S. Department of Energy's
(DOE) National Energy Technology Laboratory (NETL) to
support the first-ever U.S. demonstration of a technology
designed to utilize ventilation air methane (VAM) from coal
mines. The potential benefits of the technology include
the reduction of greenhouse gas (GHG) emissions from
coal mining activities and the generation of clean energy.
CONSOL Energy is hosting the project, which has just
completed the construction and commissioning phase, at
its Windsor Mine Portal, a closed, underground mine near
West Liberty, West Virginia (see Figure 1). CONSOL En-
ergy has tested the safety, operating, monitoring, and data
see VAM TECHNOLOGY, page 5
Figure 1. MEGTEC's VOCSIDIZER installed at CONSOL
Energy's Windsor Mine Portal in West Virginia.
In this issue...
1 Project Update: VAM Tech-
nology Demonstration Pro-
ject Begins Operation This
Spring
1 Methane to Markets Update
2 CONSOL Energy Demon-
strates Coal Mine Methane-
Fired Microturbine
7 CBM/CMM News
9 Announcements
10 Upcoming Events
Access documents electronically
from the "Documents, Tools, and
Resources" pages on our Web site at
www.epa.gov/coalbed
To subscribe to CBM Extra and
CMB Notes, please go to our website
http://www.epa.gov/cmop/mailinglist.html
and register for our mailing list. You
will be added within two weeks.
Methane to Markets Update
Methane to Markets (M2M) Coal Subcommittee Meeting
The Methane to Markets (M2M) Coal Subcommittee Meeting was held at
the Palais des Nations in Geneva, Switzerland, on April 3-4, 2007. The suc-
cessful two-day meeting directly followed the Third Session of the United Na-
tions Economic Commission for Europe (UNECE) Ad-Hoc Group of Experts
on Coal Mine Methane (CMM), convened April 2-3, 2007. Both meetings
were well attended by governmental and intergovernmental agencies, finan-
cial entities, and private sector organizations. Topics presented during the
UNECE meeting included standardization of CMM terminology, greenhouse
gas project insurance instruments, and the use of low-quality coal mine meth-
ane.
The M2M Coal Subcommittee Meeting focused primarily on plans for the
M2M Partnership Expo, which will take place October 30 - November 1,
2007, in Beijing, China. Several countries submitted project templates to
showcase at the Expo and the Subcommittee expects to receive many more
before the July 1 deadline. Updates on CMM activities were given by country
delegations, including highlights of new developments in CMM in Australia,
Russia, Mexico, and Poland. In addition, the Subcommittee discussed pro-
gress on activities in the Action Plan, including two databases (global CMM
projects and technologies), as well as future Subcommittee plans for 2008.
see M2M UPDATE, page 4
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COALBED METHANE EXTRA
C O A L B E P
METHANE
OUTREACH
PROGRAM
CONSOL Energy Demonstrates
Coal Mine Methane-Fired Microturbine
Microturbine Installation at CONSOL Energy's Bailey Mine in Penn-
sylvania.
In a first-of-a-kind project in the United States, CONSOL
Energy, in partnership with CNX Gas Corporation and
Ingersoll Rand Energy Systems, is successfully dem-
onstrating electricity generated by a microturbine fueled by
unprocessed coal mine methane (CMM) at an active un-
derground coal mine. The project uses CMM directly from
the underground workings at CONSOL's Bailey Mine. Lo-
cated in Greene County, Pennsylvania, the Bailey Mine is
one of the largest underground coal mines in the world,
producing over 10 million short tons of coal in 2006.
Project Summary
Currently, the unit is running and will undergo a one-
year operational phase. The microturbine is a 70 kilowatt
(kW) unit with low-Btu fuel (350-575 Btu per cubic foot)
capability. Designed and built by Ingersoll Rand Energy
Systems, the off-the-shelf microturbine is a small mobile
electricity generator modified in order to accommodate
project-specific requirements, including:
> installation of auxiliary equipment to remove mois-
ture from the gas and boost the gas pressure enter-
ing the microturbine,
> addition of an automatic shutoff valve on the mine
vent, and
> inclusion of a communications package that allows
remote monitoring of the equipment.
Each year, the 70 kW microturbine is expected to gen-
erate approximately 500 megawatt-hours of electricity
while consuming approximately 8 million cubic feet of
methane that would have otherwise been emitted, which is
equivalent to taking 690 cars off the road in terms of its
reduction in global warming potential. Every kilowatt of
electricity generated on site directly reduces the amount of
electricity purchased from the grid. The pilot microturbine
project received a grant from the Pennsylvania Depart-
ment of Environmental Protection (DEP). CONSOL En-
ergy will donate the monetary value of the electricity gen-
erated during the first full year of operation of the microtur-
bine to the West Greene School District.
This microturbine demonstration project will evaluate
the economics of using this technology to generate elec-
tricity using CMM. This project is intended to aid in future
technology transfer by providing potential mine sites with a
robust operational data set that will allow mines to con-
sider microturbines as an option to generate electricity for
mining operations while reducing greenhouse gas emis-
sions.
Benefits of Power Generation from Coal Mine Methane
Generating power from raw coal mine methane has
several advantages over other end-use options. There are
no formidable location requirements other than sufficient
onsite space and appropriate terrain for installation. Com-
pared to natural gas pipeline injection, where gas quality is
a key consideration, power generation equipment can op-
erate using medium-quality gas. In some cases, depend-
ing upon the level of impurities in the gas, plant designers
may recommend gas pre-treatment. As long as regional
electricity prices are sufficiently high, the generated power
"We've been able to demonstrate that this unit is an
innovative way to harvest and use a greenhouse gas
that would normally be vented into the atmos-
phere...If the economic evaluation is positive, this
technology can be applied in coalfields either in
isolated areas that may lack access to electricity
transmission lines or at individual commercial
power generation sites."
Nicholas Deluliis
President and CEO
CNX Gas Corporation
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COALBED METHANE EXTRA
C O A L B I
M E T H A I. -
OUTREACH
P R O 6 R A A*
can offset part of the electricity needed to operate the
mine's equipment, conveyor belts, ventilation fans, and
coal preparation plants. Alternatively, if prices are attrac-
tive, the mine may choose to sell electricity to the grid via
existing transmission lines.
To generate power from drained CMM , three broad
classes of technologies are commercially available: inter-
nal combustion engines, gas turbines, and microturbines.
Internal combustion (1C) engines are the most popular
technology choice for electricity production at coal mines
around the world. Conventional gas turbines require fairly
high methane flows - about 500,000 cubic feet per day
(cfd) for a 1.5 megawatt (MW) unit.
Microturbines are the most practical choice for smaller
operations with a capacity of less than one MW. Table 1
summarizes key characteristics of this technology. Micro-
turbines operate much like gas turbines except the high-
speed turbine, compressor, and generator are packaged
into a container the size of a refrigerator. Their relatively
small output ranges - 30 to 250 kW each - make them
applicable to small CMM flows. Microturbines are com-
pact, quiet, clean and reliable, and they work well in re-
mote areas. Additionally, microturbines are scalable and
can be configured to match capacity from as little to 30 kW
up to several MW. In addition, as a modular system they
can be configured to meet both power and physical instal-
lation requirements. If the right conditions exist, microtur-
bines can provide coal mines with economical, reliable,
and price-stable electric power. Microturbines have rela-
tively low air emissions, which makes them easier to per-
mit.
Small mines with very low methane emissions, as well
as abandoned mines, whose methane recovery and pro-
duction decrease with time, may be well-suited for micro-
turbines. For example, from 2000 to 2005, the abandoned
Akabira Coal Mine in Sumitomo, Japan, utilized five micro-
turbines each with a generating capacity of 30 kW. Sev-
eral factors made the microturbines very appealing at this
site. Only about 17.7 million cubic feet of CMM was recov-
ered and utilized per year, a flow small enough to rule out
the use of 1C engines or turbines. In addition, Japanese
regulations are less restrictive for turbine use than engine
use. Finally, the low maintenance and operating require-
ments of the microturbine system proved attractive.
Table 1. Typical Microturbine Parameters
Typical Output Range
(MW)
Required CMM Supply
(cfd)
Output Flexibility
Compatibility with VAM
Waste Heat Recovery
Other Benefits
Typical Installation Cost
($/kW)*
Typical Maintenance Cost
($/kWh)*
* Highly case specific
0.03 to 0.25
About 100,000
Excellent
Being Tested
Fair to Poor
Suitable for decreasing meth-
ane production at abandoned
mines
1,500-2,000
0.003-0.01
Outlook
With demand for electricity likely to grow during the
next decade, clean power technologies such as CMM-fired
microturbines will help meet demand while controlling
emissions of greenhouse gases. By generating electricity
from coal mine methane gas that is currently being vented,
the CONSOL demonstration project is reducing emission
and generating value from a previously wasted resource.
For CONSOL Energy's press release describing this pro-
ject, see:
http://energy.ingersollrand.com/news/article.asp/
news id/107 t?
www.epa.gov/coalbed
www.methanetomarkets.org
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COALBED METHANE EXTRA
C O A L B E P
METHANE
OUTREACH
PROGRAM
M2M Update from page
Ik
Methane to Markets
/all for Projects an<
Announcement of Sponsorship Opportunities
A
Methane to Markets
Partnership Expo
The Methane to Markets Partnership Administra-
tive Support Group (ASG) is accepting submis-
sions of methane recovery and use project opportuni-
ties. Selected projects will be showcased at the up-
coming Partnership Expo in Beijing, China, to be held
October 30 - November 1, 2007. In particular, the
Partnership is seeking methane recovery or use pro-
jects in four sectors: Agriculture (e.g., dairy or swine
waste management), Coal Mines, Landfills, and Oil
and Gas Systems. The Expo will provide attendees
with the opportunity to:
• Showcase project opportunities for potential in-
vestors
• Meet with potential project partners and financi-
ers
• Learn about the latest technologies and services
• Explore key technical, policy and financial is-
sues
For complete details about how to submit a project
for consideration for the Expo, visit the project sub-
mission Web page at www.methanetomarkets.org/
expo/ and select "Submit a Project". The submission
deadline is July 2, 2007.
For information about becoming a Sponsor of the
Expo, please visit
http://www.methanetomarkets.org/expo/
sponsors.htm
For more information about the Partnership, please
visitwww.epa.gov/methanetomarkets.
Overall, the meetings were productive and it was exciting to
see the growing interest in CMM project development
worldwide.
Meeting minutes and presentations are posted on-line at
http://www.methanetomarkets.org/events/2007/coal/
coal-2apr07.htm
For more information on submitting projects to be show-
cased at the M2M Partnership Expo in Beijing, please see
http://www.methanetomarkets.org/expo/submit.htm
Methane to Markets Three-sector Workshop in India
On February 22nd and 23rd, the U.S. Environmental Pro-
tection Agency, the Federation of Indian Chambers of
Commerce and Industry (FICCI), and the Government of
India jointly organized a two-day workshop on the Methane
to Markets Partnership and methane recovery and use pro-
ject opportunities in India. The workshop provided an intro-
duction to the Partnership and specific technical and pro-
ject level discussions in three industry sectors: coal mining,
landfills, and oil and natural gas.
METHANETO MARKETS CONFERENCE
The meeting was held at FICCI's building in Delhi and
attracted more than 100 participants. Presentations were
given by a diverse set of speakers from government, aca-
demia and the private sector. The workshop featured three
separate technical workshops (focused on coal, landfills,
and oil & gas sectors) along with an opening plenary ses-
sion with keynote speakers from the nodal Indian Minis-
tries, the U.S. Embassy and from the USEPA.
The Indian Minister of Environment, Dr. Prodipto Ghosh,
headlined the plenary session and provided an overview on
why methane reductions in India are important and how the
Methane to Markets Partnership can contribute. FICCI will
be developing an action plan based on a facilitated discus-
sion that was held in each sector session in order to use
the momentum from this workshop to push forward on pro-
ject development in India in the three targeted sectors.
There was also discussion of launching an initiative in the
animal waste management sector.
see M2M UPDATE, page 9
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COALBED METHANE EXTRA
C O A L B E P
METHANE
OUTREACH
PROGRAM
VAM Technology from page ^
logging systems for proper function. The system was
deemed fully operational in April 2007. CONSOL will op-
erate the equipment for eight months.
The project is being funded through an interagency
agreement between EPA and DOE with the agencies pro-
viding $500,000 and $1.1 million, respectively. In addition,
CONSOL Energy and MEGTEC Systems, the technology
supplier, are providing about $400,000 in funding and re-
sources as well as technical support. EPA will also pro-
vide technical and analytical support during the demon-
stration project and will assist in the analysis, interpreta-
tion, and extrapolation of the demonstration results.
Project Background
Methane explosions and
fires are the leading cause of
coal mining fatalities globally.
Methane is explosive in con-
centrations ranging from 5 to
15% in air. The primary
mechanism for removing
methane from operating
mines is through ventilation
systems that circulate fresh
air into the mine to dilute the
in-mine methane concentra-
tion. Large fans move a large
enough volume of air to re-
duce in-mine methane concentrations to below 1 or 2% as
required by most international safety regulations for coal
mining.
A potent greenhouse gas, methane is over twenty
times more effective than carbon dioxide at trapping heat
in the atmosphere. Methane emissions from coal mines
represent about 10% of U.S. anthropogenic methane re-
leased to the atmosphere. The largest source of this coal
mine methane is dilute methane emitted from mine ventila-
tion shafts (VAM), which accounts for over 55% of all
methane emitted by U.S. coal mines.1 VAM is difficult to
capture and use because it has a low methane concentra-
tion (typically ranging from 0.3-1.5% methane), and be-
cause of the large volume airflows associated with ventila-
tion systems, typically on the order of 100,000 to several
100,000 cubic feet per minute (cfm).
One novel approach to reducing VAM emissions in-
volves oxidation of the dilute methane gas and the recov-
ery and transfer of heat to generate energy. The technol-
ogy used in this demonstration project is MEGTEC's ther-
mal flow reversal reactor (TFRR), known as the VOCSI-
Figure2. Internal View of VOCSIDIZER showing bed, insulation,
switching valves, and air plenum. photo courtesy of MEGTEC systems, inc.
DIZER. Over 700 VOCISIDIZER units have been installed
globally and have proven to be effective in a variety of in-
dustrial applications including odor abatement and the de-
struction of volatile organic compounds. The VOCSI-
DIZER system efficiently and safely produces heat from
the dilute methane in VAM, which may be transferred for
local heating needs or for the production of electric power.
Technology Description
The VOCSIDIZER consists of a ceramic bed in an air-
tight steel container (Figure 2), to facilitate regenerative
heat exchange between the inflowing VAM and a solid
heat exchanger medium. The process fan at the inlet side
of the VOCSIDIZER forces
the ventilation air through the
reactor in one direction. The
dilute methane stream gains
temperature as heat is trans-
ferred from the electrically-
preheated bed until it reaches
a temperature at which the
methane is oxidized. The
thermal energy released dur-
ing methane oxidation is re-
covered by the bed medium
as the air flows to the outlet
side of the reactor. To main-
tain the high temperature
zone within the ceramic bed,
the air flow through the reac-
tor is reversed periodically using large switching valves.
As a result, the part of the bed that was initially heated
then heats the incoming gas and the process repeats.
The VOCSIDIZER is self-sustaining at low methane
concentrations (0.2%-1.2%) and requires no other source
of fuel. Because of the system's rugged construction, few
moving parts, and advanced controls, it requires little
maintenance. The homogenous temperatures within the
reactor ensure low pollutant emissions. Oxidizing meth-
ane converts it to CO2 and water, which reduces its global
warming potential by 87%. The system produces virtually
no SOx, NOx, or particulates, and only minor quantities of
CO. The VOCSIDIZER system for this demonstration pro-
ject consists of a single oxidizing unit with a throughput of
30,000 cubic feet per minute (cfm). A typical large com-
mercial mine ventilation fan in the U.S. has a flow rate of
around 180,000 cfm. Because the oxidizer units are
modular, the system can be scaled up simply by adding
additional units.
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COALBED METHANE EXTRA
International Projects
This project represents the first trial of the VOCSI-
DIZER to oxidize ventilation air methane in the U.S., al-
though this application of the technology has been suc-
cessfully tested at the small pilot scale in other countries.
The first pilot-scale test was conducted at British Coal's
Thoresby Mine in the United Kingdom in 1994. In this
case, the system oxidized a VAM flow (4,700 cfm) from a
gassy underground mine (at concentrations of 0.3-0.6%
methane), and demonstrated self-sustaining operation at
0.1 % methane. In 2001-2002, a project in Australia at
BMP Billiton's Appin Colliery provided additional proof of
the ability to oxidize ventilation air (3,500 cfm), and also
recovered 90% of the heat as hot water. Finally, the
world's first commercial-scale VAM-to-power project be-
gan construction in 2005 at BMP Billiton's West Cliff Col-
liery in New South Wales, Australia. For this project, the
oxidation of close to 150,000 cfm of ventilation air is ex-
pected to generate between 5 and 6 megawatts (MW) of
electricity. This project is expected to be fully operational
in 2007.
"Thisproject shows how we can work through pub-
lic-private partnerships to develop innovative, cli-
mate-friendly technologies. By capturing methane
from coal mines, we can promote clean energy
while reducing greenhouse gases."
Bill Wehrum
Acting Assistant Administrator
EPA's Office of Air and Radiation
Project Objectives and Outcome
The U.S. demonstration project will simulate VAM con-
centrations at an active mine by diluting gob gas from an
abandoned coal mine. This simulation will allow project
operators to manipulate flows and vary methane concen-
trations, enabling testing of system performance over a
wide range of operational parameters. Testing this range
is important because while VAM is emitted from every un-
derground coal mine in the world, each coal mine has
unique characteristics. The demonstration program will
result in the generation of better capital, operating, and
maintenance cost information, which will substantially re-
duce the economic uncertainty associated with future in-
stallations.
The project aims to determine the long-term technical
and economic feasibility of applying the technology to the
safe and efficient operation of a large underground coal
mine. The primary objectives of this demonstration project
are to:
> Design and prove an effective, safe interface be-
tween the TFRR and the mine ventilation system
> Verify the ability of the TFRR to oxidize the low and
variable concentrations of methane effectively in
long-term operation
> Conduct an engineering/economic evaluation of the
technology as applied to both methane oxidation
and to energy recovery
Conclusions
Mitigation of ventilation air methane from coal mines
would make a major contribution to reducing greenhouse
gas emissions while providing a new source of clean en-
ergy. For example, a large commercial-size installation
(180,000 cfm) of TFRR technology on a single typical mine
ventilation bleeder fan could reduce methane emissions by
14,200 to 23,700 tons per year (equivalent to 260,000 to
430,000 tons CO2). Although beyond the scope of the
current demonstration project, the heat recovered from
VAM oxidation may be utilized for electricity generation.
This would reduce the demand on fossil fuel generating
stations, thus reducing the emissions of SOx, NOx, CO,
and other criteria pollutants. A single commercial TFRR
installed on a typical mine bleeder fan unit could produce
4.7-7.7 MW of electricity or 18-30 MW of thermal energy.
The potential emissions reductions across the U.S. if even
25% of the VAM from gassy mines was recovered would
be enormous: equivalent to 7.2 million tons CO2. Thus,
the successful demonstration of this technology would be
a very encouraging first step towards the large-scale appli-
cation to U.S. active underground mines, t?
1 Sources: Energy Information Administration, "Emissions of Greenhouse Gases in the United States 2005." DOE/EIA-0573(2005), November 2006;
U.S. Environmental Protection Agency, "Inventory of U.S. Greenhouse Gas Emissions and Sinks: 1990-2005." EPA 430-R-07-002, April 15, 2007.
What do you want to know about?
If you have suggestions or requests for future CBM Extra content, please drop us a line.
Jemelkova.Barbora@epa.gov or Somers.Jayne@epa.gov
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COALBED METHANE EXTRA
CBM/CMM News
U.S. State Department Issues
Grants Solicitation for Asia-Pacific
Partnership (APP) on Clean Devel-
opment and Climate
The U.S. State Department an-
nounced a competitive process for up
to $26 million in grants to be awarded
to projects that contribute to the goals
of APP through innovative public-
private partnerships. The two-step
process calls for short Concept Pa-
pers initially by April 27, and if ap-
proved, full proposals by May 29.
The projects are expected to fall un-
der one of the eight APP Task Forces
(including the Coal Mining Task
Force) but exceptional cross-cutting
or other relevant proposals may be
considered. Current restrictions on
the funding limit grants to projects in
India. Both U.S. and international
organizations are eligible. More infor-
mation can be found at
http://www.grants.gov (search
"APP").
Alberta Energy Utilities Board
Rules on CBM Ownership on Ca-
nadian Non-Crown Lands
As reported by the Canadian
Press, the Alberta Energy and Utili-
ties Board (EUB) released a decision
on March 28, 2007, which frees com-
panies to develop coalbed methane
in disputed areas on non-Crown
lands in the province. The dispute
arose between companies with min-
eral rights to coal seams, who argue
that methane gas embedded in the
ore belongs to them, while opposing
parties argue that coalbed methane
should be considered natural gas
with separate drilling rights. In the
recent ruling, the EUB decided
against the owners of the coal rights,
and said the owners of the gas li-
censes have the right to develop the
resource. Existing laws already iden-
tify coalbed methane on Crown lands
as natural gas.
As reported by the Canadian
Press, conservative estimates peg
Western Canadian coalbed methane
reserves at 75 trillion cubic feet, and
experts predict it could contribute up
to 10 percent of Canada's natural gas
production. About 10 percent of Al-
berta's mineral rights are freehold
and spread across southern Alberta,
butting against lands being devel-
oped for coalbed methane.
The Canadian Press - March 29,
2007 http://www.cbc.ca/cp/
business/070329/b0329103A.html
NAL Oil & Gas Trust Commences
Production of CBM at Lacombe,
Alberta
NAL Oil & Gas Trust has com-
menced production from its Horse-
shoe Canyon coalbed methane pro-
ject in the Lacombe area of Central
Alberta. In 2006, NAL drilled 37 wells
at Lacombe and Clive and installed
gas processing and pipeline infra-
structure. These wells are being
completed and tied-in during the first
quarter of 2007. Capital costs for
drilling and facilities construction to-
taled CA$20.5 million gross (CA$13
million net), primarily spent in 2006.
Collectively with several existing
conventional wells in the area, pro-
duction rates in the Lacombe/Clive
area in Alberta province are expected
to be 5.7 million cubic feet per day
(MMcfd) gross (3.8 MMcfd net) by the
second quarter of 2007. The second
phase of CBM development at La-
combe in 2007 is projected to add
another 2.7 MMcfd gross (1.8 MMcfd
net) production by year-end. NAL
forecasts that by year end 2007, total
production from the Lacombe/Clive/
Nevis area will be 13.7 MMcfd gross
(8.6 MMcfd net).
Canadian NewsWire (press release)
- March 8, 2007
http://www.newswire.ca/en/
releases/archive/March2007/08/
c8695.html
Sultan Energy Philippines Corp. to
Use CBM to Produce Electricity
Rufino Bomasang, president of
Sultan Energy Philippines Corp., an-
nounced his company's plans to in-
vest $100 million to build a mine-
mouth coal-fired power plant in Min-
danao in the Philippines' Daguma
Mountain range. The plant, which will
become operational by 2011, will util-
ize coal from the Daguma coal mine.
Bomasang also announced plans to
make additional investment to de-
velop the area's extensive coalbed
methane resources, estimated to be
about 100 billion cubic feet in a 7,000
hectare area, and use the coalbed
methane to generate electricity. The
estimated capacity of this area is
about 100 MW.
The Philippines has about 19 coal
districts, which contain significant
coal deposits. Coal resources in the
areas are estimated at about 2.3 bil-
lion metric tons with total coalbed
methane potential of about 16.4 bil-
lion cubic meters (equivalent to bout
600 billion cubic feet).
Manila Standard Today- March 15,
2007 http://
www.manilastandardtoday.com/?
page=business4_mar15_2007
China Adopts New Coalbed Meth-
ane Tax Policy
China has adopted new preferen-
tial tax policies for the utilization of
coalbed methane in the course of
coal mining in an effort to encourage
clean and safe production in the
country. According to a joint state-
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Spring 2007
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COALBED METHANE EXTRA
ment by the Ministry of Finance and
State Administration of Taxation, un-
der the new policies, which took ef-
fect on January 1, 2007, CBM pro-
ducers will enjoy a full rebate on the
value-added tax they pay for their gas
production. These producers will
also enjoy corporate income tax ex-
emption for their incremental CBM
output that arises from the application
of new technology through research
and development funded by their tax
rebate. The government also allows
CBM producers to adopt accelerated
depreciation methods on facilities and
equipment related to CBM produc-
tion. Producers can use corporate
income tax to offset 40% of the funds
they spend on investing in Chinese-
made equipment related to the re-
vamp of their CBM exploitation tech-
nology. The government also gives
other preferential tax treatment to
producers to encourage develop-
ment, research and adoption of new
technologies for CBM production.
Moreover, no resources tax is levied
on onshore exploitation and produc-
tion of CBM.
China United Coalbed, Hong Kong
Longmen Ink CBM Contract
China United Coalbed Methane
Corp has signed a product sharing
contract to jointly explore for coalbed
methane in northwestern China's
Shaanxi province with Hong Kong's
Longmen Huifeng Investment Co Ltd,
the official Xinhua news agency re-
ported. The deal is the first venture
by Hong Kong investors in mainland
China's coalbed methane sector.
The Hancheng block, located in
Hancheng city, has total coalbed
methane reserves of 404.87 billion
cubic meters (Bern), according to a
preliminary prediction by the China
United Coalbed Methane Corp. The
block covers 460.93 square meters.
Sun Maoyuan, the president of China
United Coalbed Methane, said
China's coalbed methane output is
expected to reach 10 Bern by 2010
and 40 Bern by 2020.
China Daily- March 23, 2007
http://www.chinadaily.com.cn/
bizchina/2007-03/23/
content_834743.htm
Green Power Plant Drives Mine
As reported in The Courier-Mail
(Brisbane, Australia), Anglo Coal
Australia opened a new AU$43 mil-
lion gas-fired power station at its Ger-
man Creek mine, near Middlemount
in central Queensland. It uses gas
extracted from the coal seam to pro-
vide 32 megawatts of energy for its
mining as well as supplying into the
national grid. The station can provide
power for about 8,000 homes. Sup-
ported by an AU$15 million federal
government grant, the plant will cut
greenhouse gas emissions in the
area by the equivalent of 250,000
cars.
Anglo Coal Australia is working
with Brisbane-based Energy Devel-
opments Ltd (EDL) - which designed
and built the German Creek power
station - on a similar project at its
Moranbah mine. It already runs a
gas power station at its Dawson
mine, which is undergoing a $1.3 bil-
lion expansion.
The Courier-Mail - March 23, 2007
http://www.news.com.au/
couriermail/
story/0,23739,21435582-
3122,00.html#
Constellation Energy Partners to
Expand Coalbed Methane Opera-
tions into Kansas and Oklahoma
Constellation Energy Partners
LLC has signed a definitive purchase
agreement to acquire coalbed meth-
ane properties from EnergyQuest
Resources LP for an aggregate pur-
chase price of $115 million. The
properties are located in the Chero-
kee Basin in Kansas and Oklahoma.
The acquisition is expected to close
in mid-April 2007.
Highlights of the deal include: esti-
mated proved reserves of 49 billion
cubic feet; reserve life index of 17
years; current net production of ap-
proximately 7,900 thousand cubic
feet per day; over 550 producing
wells with an average 75 percent op-
erated production; over 800 low-risk,
low-cost drilling and recompletion
opportunities on approximately
96,000 gross acres; and over 500
miles of pipeline gathering systems.
Constellation Energy Partners LLC
(press release) - March 8, 2007
http://news.thomasnet.com/
companystory/512144
CNX Gas Replaces 340% of Pro-
duction and Increases Proved Re-
serves 11.9%
CNX Gas Corporation announced
it added 191 billion cubic feet (Bcf) of
reserves in 2006, which is 3.4 times
the company's 2006 gas production
of 56.1 Bcf. The company's proved
reserves as of December 31, 2006,
totaled 1,265 Bcf, an increase of 135
Bcf, or 11.9 percent, compared with
the 1,130 Bcf of proved reserves as
of December 31, 2005. During the
year, 89 Bcf of reserves were added
from the drilling program, while 102
Bcf consisted of upward revisions.
The majority of proved reserves
(1,221 Bcf) are associated with CNX
Gas Virginia coal bed methane op-
erations.
CNX Gas Corporation (press release)
- February 20, 2007
http://sev.prnewswire.com/oil-
energy/20070220/
NYTU04220022007-1.html <•?
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Spring 2007
Page 9
COALBED METHANE EXTRA
C O A L B E P
METHANE
OUTREACH
PROGRAM
Announcements: U.S. Coal Mine Methane Conference
Preliminary Announcement
U.S. Coal Mine Methane Conference to be held in St. Louis, Missouri,
September 25-27. More details to follow on the CMOP website.
Announcement of Sponsorship Opportunities
For more information, please contact Ms. Charlee Bergamo at
cbergamo@ravenridge.com or Ms. Barbora Jemelkova at
jemelkova.barbora@epa.gov
M2M Update from page 4
Vietnam Joins Methane to Markets Partnership as 20
Nation
ih
Partner
The Methane to Markets Partnership marked a milestone as it con-
tinues to build international participation. On April 4, 2007, Vietnam
became the 20th Methane to Markets partner, working to capture and
use methane as a clean-energy source. Vietnam joined 19 other coun-
tries and a growing Project Network of more than 500 public and pri-
vate sector organizations that are reducing emissions of methane, a
powerful greenhouse gas. At the same time, participants enhance eco-
nomic growth, air quality, industrial safety, and energy security in mar-
kets around the world.
The Partnership currently focuses on four sources of methane
emissions: Agriculture (animal waste management), coal mines, land-
fills, and oil and gas systems.
Vietnam has coal reserves estimated at 150 million tonnes, most of
which is anthracite. The country's coal production in 2003 was about
16 million tonnes. Coal accounts for nearly one-quarter of Vietnam's
energy production. The country is seeking to increase production of its
deeper anthracite reserves. Vietnam's estimated coal mine methane
emissions in 2005 were 83 million cubic meters, ranking it 24th glob-
Read EPA's press release:
http://yosemite.epa.gov/opa/admpress.nsf/
e87e8bc7fdOc11f1852572a000650c05/
e236f6e59506d825852572ba004bdc2e!OpenDocument
Fora profile of Vietnam's coal mining and coal mine methane opportu-
nities, please see its profile developed by the Coal Subcommittee of
the Methane to Markets Partnership:
http://www.methanetomarkets.org/resources/coalmines/
overview.htm ttf
CMOP Contacts
Address inquiries about the Coalbed Meth-
ane Extra or about the USEPA Coalbed
Methane Outreach Program to:
Pamela Franklin
Phone: 202-343-9476
E-mail: franklin, pa mela@epa.gov
Barbora Jemelkova
Phone: 202-343-9899
E-mail: Jemelkova. barbora@epa.gov
Jayne Somers
Phone: 202-343-9896
E-mail: somers.jayne@epa.gov
Our mailing address is:
US Environmental Protection Agency
Coalbed Methane Outreach Program, 6207J
1200 Pennsylvania Avenue, NW
Washington, DC 20460
Visit our Web site at:
www.epa.gov/coalbed
www.methanetomarkets.org
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Spring 2007
Page 10
COALBED METHANE EXTRA
Upcoming CBM/CMM Events
North American Coalbed Methane
Forum (NACBMF) Spring Meeting
1-2 May 2007
Hilton Garden Inn at Southpointe
Canonsburg, PA
Contact: Dr. Kashi Aminian, Phone: 304-293-
7682 x 3406
Contact: Ihor Havryluk, Phone: 412-445-5803
Ukraine - Donetsk CBM Project Busi-
ness Briefing
Sponsored by U.S. Trade & Development
Agency (USTDA)
4 May 2007
Lakeview Golf Resort & Spa
Morgantown, WV
Website: http://www.mseov.com
"Accessible to U.S. entities only
28th Annual Energy & Mineral Law
Institute
13-15 May 2007
Doubletree Guest Suites
Charleston, SC
Website: http://www.emlf.org/Content/
charleston.aspx
Third International Conference on
Clean Coal Technologies for Our Fu-
ture
15-17 May 2007
Cagliari, Sardinia, Italy
Email: info@cct2007.it
Website: http://www.cct2007.it/
2007 International Coalbed Methane
Symposium
21-25 May 2007
Tuscaloosa, Alabama
Website: http://bama.ua.edu/~coalbed/
Unconventional Gas Resources - Fo-
rum
3-8 June 2007
Colorado Springs, CO
Website: http://www.spe.org/spe/jsp/
meet-
ing/0,2460,1104_1535_5227540,00.html
National Coal Show/Longwall USA
2007
5-7 June 2007
David L. Lawerence Convention Center
Pittsburgh, PA
Website: http://www.mining-media.com/
longwall/index.html
2007 National Meeting of the Joseph
A. Holmes Safety Association
5-7 June 2007
San Diego, CA
Contact: Al Simonson
Phone: 507-625-9084
Mobile: 507-351-2381
Email: sineun@hickorytech.net
Contact: Robert Clatter
Phone: 202-693-9575
Email: glatter.robert@dol.gov
Website: http://www.msha.gov/
events/2007HolmesFlyer.pdf
Asia Pacific Partnership on Clean
Development and Climate - Coal Min-
ing Task Force Meeting
11-13 June 2007
Steamboat Springs, CO
Contact: Nell Triplett
Email: TriplettNX@state.gov
Rocky Mountain Association of Pe-
troleum Geologists (RMAG) "Coalbed
Methane Symposium"
19 June 2007
Denver, CO
Contact: Druce Kelso, Phone: +1-303-825-
3344
Contact: Bob Lamarre, Phone: +1-720-488-
1396
Canadian Institute's 6th Annual Coal-
bed Methane Symposium
20-21 June 2007
Calgary, Alberta, Canada
Contact: Janelyn Loresco
Phone:+1-877-927-7936
Email: J.Loresco@canadianinstitute.com
Air and Waste Management Associa-
tion 100th Annual Conference
26-29 June 2007
Pittsburgh PA
Phone: +1-800-270-3444
Email: info@awma.org
Website: http://secure.awma.org/ACE2007/
24th Annual International Pittsburgh
Coal Conference
10-14 September 2007
Johannesburg, South Africa
Contact: Johan van Dyk
Phone:+27 16 960 4505
Fax:+27 11 2192398
Email: pitt2007@sasol.com
Website: http://www.engr.pitt.edu/
pec/2007% 20Conference.htm
Commonwealth of Virginia Energy &
Sustainability (COVES) Conference
18-20 September 2007
Virginia Military Institute
Lexington, VA
Phone: 540-464-7740
Email: bangja@vmi.edu
Website: http://www.energyvacon.org/
Polish Mining Congress Workshop:
New Trends in Coal Mine Methane
Recovery and Utilization
19-21 September 2007
Krakow, Poland
Contact: Jacek Skiba M.Sc. Eng
Phone: +48 32 3246603
Email: jskiba@gig.katowice.pl
Website: http://www.pkg.com.pl/node/93
Coal Marketing Days
20-21 September 2007
Omni William Penn Hotel
Pittsburgh, PA
Contact: James Gillies
Phone:781-860-6110
Email: james_gillies@platts.com
USEPA Coalbed Methane Outreach
Program - U.S. Coal Mine Methane
Conference
25-27 September 2007
Millenium Hotel
St. Louis, MO
Contact: Ms. Charlee Bergamo
Email: cbergamo@ravenridge.com
Website: http://www.epa.gov/coalbed
Methane to Markets Partnership Expo
30 October-1 November 2007
China World Hotel
Beijing, China
Website: http://
www.methanetomarkets.org/expo
Managing the Social and Environ-
mental Consequences of Coal Mining
in India: 1st International Conference
19-21 November 2007
New Delhi, India
Phone: +91 326 2206372
Email: s_gurdeep2001@yahoo.com
Website: http://www.mining.unsw.edu.au/
If you don't receive our weekly email updates, CBM Notes, go to
www.epa.gov/cmop/mailinglist.html to sign-up now!
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