United States
Environmental Protection Agency
Office of Air and Radiation
6207-J
EPA-430-N-00-004
Spring 2008
A publication of the Coalbed Methane Outreach Program (CMOP)
www.epa.gov/coalbed
OUTREACH
PROGRAM
West Elk Mine Expansion and Degasification Plans Approved
West Elk Mine (operated by Mountain Coal Com-
pany) recently applied for and received approval
for an expansion of its mining and methane
drainage operations in Gunnison County, Colorado. The
deliberation over this planned expansion among several
federal agencies and other groups received considerable
local press coverage. One of the key issues focused on
the fate of the additional methane that would be emitted
from the mine's degasification system. This article sum-
marizes this process, which highlights the numerous barri-
ers that still affect many coal mine methane (CMM) project
opportunities in the United States. As the debate over cli-
mate change legislation moves forward in the U.S. Con-
gress and awareness of greenhouse gas emissions in-
creases around the country, lawmakers, regulators, and
non-governmental organizations (NGOs) will continue to
focus more attention on CMM reduction opportunities.
Expansion of West Elk coal mine
In 2006, Mountain Coal Company, an Arch Coal sub-
sidiary, submitted a request to the Colorado Division of
Reclamation, Mining and Safety to expand production and
add methane drainage at its West Elk mine. The proposed
Deer Creek Shaft and E Seam Methane Drainage Wells
Project entailed drilling 168 methane drainage wells and a
new 28-foot diameter ventilation and escape way shaft.
Because the revision to the mining permit would require
construction, operation, and reclamation on the surface of
see WEST ELK, page 2
In this issue...
1 West Elk Mine Expansion and
Degasification Plans Approved
1 U.S. EPA Developing Green-
house Gas Reporting Rule
3 Methane to Markets Update
5 EPA Launches Feasibility Stud-
ies in China
6 Proposed FY 2009 Presidential
Budget
7 Update - Legislative Activity on
the Hill
8 New Publications
9 CBM/CMMNews
11 Upcoming Events
Access documents electronically from
the "Documents, Tools, and Re
sources" pages on our Web site at
www.epa.gov/coalbed
To subscribe to CBM Extra and CBM
Notes, please go to our website
http://www.epa.gov/coalbed/join/index.html
and register for our mailing list. You
will be added within two weeks.
U.S. EPA Developing Greenhouse Gas
Reporting Rule
On December 26, 2007, President Bush signed the FY2008
Consolidated Appropriations Act (Public Law 110-161) which
authorized EPA to "...develop and publish a draft rule not
later than 9 months after the date of enactment of this Act, and a final
rule not later than 18 months after the date of enactment of this Act, to
require mandatory reporting of greenhouse gas (GHG) emissions
above appropriate thresholds in all sectors of the economy...." EPA
will use its authority under the Clean Air Act (Sections 114, 208) to
establish this program.
This is an ambitious timetable but EPA is working toward the
deadlines. EPA is aware of existing methods for reporting already at
the federal and state levels and intends to build on those existing
approaches, rather than starting from scratch.
Congress set a broad scope for this program, including reporting
of all six greenhouse gases: carbon dioxide (CO2), as well as more
potent gases such as methane (CH4), nitrous oxide (N2O),
hydrofluorocarbons (MFCs), perfluorocarbons (PFCs), and sulfur
hexafluoride (SF6). The program may include reporting by both
upstream fuel and chemical suppliers and as well as downstream
see GHG REPORTING RULE, page 4
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Spring 2008
Page 2
COALBED METHANE EXTRA
Elk from page 1
the Gunnison National Forest, the U.S. Forest Service
(FS) was charged with evaluating the impact of the re-
quest on public health and safety (such as impacts to live-
stock foraging and riparian habitat) and on coal reserves
development. In making a decision based on the request,
the FS drafted an Environmental Impact Statement (EIS).
U.S. EPA's regional office reviewed the EIS based on its
authority under the National Environmental Policy Act
(NEPA).
The final EIS (August 2007) included an analysis of
the methane that would be emitted from the proposed ven-
tilation shaft and drainage wells. Methane is both a clean
energy source and a potent greenhouse gas that contrib-
utes to global warming if emitted to the atmosphere. Under
the right circumstances, however, methane can be cap-
tured from coal mines and utilized as productive energy or
destroyed. Although past West Elk coal production has
generated substantial CMM emissions, the final EIS did
not include a detailed analysis of capture and use of the
coal mine methane or flaring of the methane gas. With
respect to these two issues, the EIS cited issues with legal
rights to use the gas and concerns of the Mine Safety and
Health Administration (MSHA).
On August 17 and November 8, 2007, the Forest Ser-
vice issued two Records of Decision (RODs) that together
approved the drilling and casing of up to 168 drainage
wells located on up to 146 drilling pads, the installation of
degassing equipment, and the operation and maintenance
of wells for methane drainage while recovering coal in the
E seam. It also approved roads to all wells, except for
eight to ten wells authorized under a coal lease issued
after enactment of the 2001 Inventory Roadless Area
(IRA) rule. The ROD did not require Arch Coal to utilize or
destroy methane emissions associated with the new ac-
tion.
A Denver-based NGO appealed the Forest Service
decision on the grounds that methane destruction was not
adequately considered as an alternative in the EIS. On
February 13, 2008, the regional Forest Service office
agreed that the ROD "failed to consider in detail an alter-
native that utilized flaring of methane" and reversed the
decision, remanding it back to the Forest Supervisor. The
Forest Supervisor and his staff conducted further research
and, based on input received from MSHA, considered but
eliminated from detailed study the flaring of methane emis-
sions as a viable alternative at this time. At press time, the
November 8, 2007, decision by the Forest Service stands.
Barriers to CMM Project Development on Federal
Lands
The decision process for approving West Elk mine's
degasification and expansion plans have highlighted sev-
eral obstacles to CMM projects, especially those on U.S.
federal lands. One such issue is the gas ownership or right
to recover and use the methane. The methane in a coal
seam is legally considered to be separate from the coal
estate itself and must be leased separately. On federal
lands, the gas lease must be obtained from the U.S. fed-
eral government. According to the Bureau of Land Man-
agement (BLM), a coal company does not have the legal
right to utilize, for profit, the methane associated with its
coal production at a coal mine on federal land unless it
also maintains a lease for natural gas in the area. In the
West Elk case, BLM was actively involved and has taken
steps to nominate the associated natural gas estate for
lease, but this has not yet occurred.
A second challenge in the West Elk case was associ-
ated with surface disturbance issues on federally protected
lands. The EIS for the West Elk proposal for mine and de-
gasification expansion focused on the impact that CMM
degasification operations would have on the land surface
in protected areas designated as "roadless." If a CMM
utilization project were also to be considered, gathering,
compression, and transportation infrastructure would be
difficult to site in an inventory roadless area. These sur-
face restrictions, coupled with the extreme terrain and to-
pography, would pose challenges for potential CMM pro-
ject development.
Finally, the issue of the potential for flaring the drained
mine methane emerged in the West Elk case, and its po-
tential use at other U.S. coal mines remains unclear. The
West Elk mine proposal did not include flaring as an alter-
native, but during the official comment process the issue
was raised that flaring of the methane (to reduce its green-
house gas emissions) should be considered. In general,
EPA's perspective is that when the productive and eco-
nomic utilization of coal mine methane is ruled out be-
cause of site-specific conditions, destruction of the meth-
ane through combustion (e.g., flaring) is a viable, second-
best option to reduce GHG emissions. Although methane
flares at coal mines have been successfully used at active
underground mines in the United Kingdom, methane flares
at active underground coal mine shafts are extremely rare
(if present at all) in the United States.1 The U.S. Mine
Safety and Health Administration (MSHA), the agency that
regulates underground coal mines for safety, does not
have a clear policy regarding the permissibility of flaring at
see WEST ELK, page 4
1 EPA is not aware of any flares currently operating at active U.S. coal (or other) underground mines.
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Spring 2008
Page 3
COALBED METHANE EXTRA
Methane to Markets Update
Coal Mine Methane Subcommittee Meeting in Italy
Please join us 29-30 April 2008 in Sardinia, Italy, for
an exciting and informative two days that will include:
• Proposals for country-specific strategies for pro-
moting the recovery and use of coal mine meth-
ane
• Discussion of effective ways to engage the private
sector
• An update on the carbon market for coal mine
methane projects
• A site visit to a Carbosulcis SpA coal mine
Registration, more detailed meeting information, and a
draft agenda is now available on the Methane to Markets
website at www.methanetomarkets.org/events/2008/
coal/coal-29apr08-2.htm
Successful CMM Recovery and Utilization Workshop
in Poland
An international workshop on coal mine methane
(CMM) was hosted by the Central Mining Institute of Ka-
towice, AGH University of Science & Technology, and the
Mineral & Energy Economy Research Institute of the Pol-
ish Academy of Sciences from 27-29 February 2008 in
Szczyrk, Poland. The U.S. Environmental Protection
Agency and the United Nations Economic Commission for
Europe assisted with the workshop design and implemen-
tation. The workshop was also sponsored by the Jastrze-
bie Coal Company, a major Polish coal mining company,
Lennetal Industrie Service GmbH from Germany, and
MEGTEC Systems AB from Sweden. With over 100 par-
ticipants, including one-third from outside Poland, the
workshop addressed newly-developed technologies for
coal mine methane drainage and utilization, project financ-
ing options, and project management and integration.
There was a comprehensive agenda for the two-day
event. The workshop covered a wide range of technical
and financial issues related to coal mine methane capture
and use, including sessions on:
• Key aspects of a successful coalmine methane
project
• Current developments in methane degasification
• Methane production and gathering systems
• Use of CMM from methane drainage systems
Field Trip to the Jastrzebie Coal Company's Pniowek Mine
• Financing options
! I Ventilation air methane (VAM)
• Project integration and execution
• Roundtable on barriers to implementation
• Flaring and abandoned mine methane
The presentations delivered at the workshop are avail-
able at www.imf.net.pl/node/28 and the program is avail-
able at www.imf.net.pl/node/26
Currently, there are 33 active coal mines in Poland, 29
of which are classified as gassy. Twenty of the mines are
equipped with methane drainage systems and 14 of them
are utilizing the produced CMM. The CMM/CBM re-
sources of Poland are estimated to be between 350 billion
cubic meters (Bern) and 1,300 Bern, with an exploitable
gas resource of 95 Bern. Approximately 250 million cubic
meters (MMcm) of methane was recovered from the mines
in 2006, representing about 30% of the total emissions of
851 MMcm. The number of coal mines in Poland has de-
creased over the past two decades. From 1989 - 2005,
Poland closed 83% of their older coal mines (mostly by
merging), but only ~19% of the gassy mines were shut.
This means that the share of gassy coal mines in Poland
has been increasing and provide significant opportunities
for CMM project development.
see M2M UPDATE, page 4
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Spring 2008
Page 4
COALBED METHANE EXTRA
GHG Reporting Rule^ ;, e
emitters. Congress provided flexibility and discretion to
EPA in writing the rule, particularly in determining
appropriate thresholds and the frequency of reporting.
EPA welcomes stakeholder input and plans to
reach out to stakeholders through information sharing
sessions as well as public meetings.
Further information and current activities related to
the GHG Reporting Rule will be posted on the EPA
website soon. The site will be updated as more
information and materials become available. &
USEA Workshop on CMM in China
RESERVE YOUR SPOT TODAY!
CMOP is working with the United States Energy
Association (USEA) to develop a workshop in
China called "Coalbed Methane and Coal Mine Meth-
ane Power Generation." The four-day event is part of
the U.S. China Natural Gas Training series funded by
the United States Trade and Development Agency
(USTDA). The training will take place in Dalian City,
Liaoning Province from May 28 to 31, 2008.
Sessions (conducted in English with Chinese
translation) will cover:
> Opening remarks by EPA and China's Na-
tional Development and Reform Commission
(NDRC);
> CMM resource assessment, planning, and
drainage;
> Methane drainage techniques; and
> The use of CMM for power generation.
The entire natural gas training series is being
organized for China's National Development and Re-
form Commission (NDRC), but other interested par-
ties can attend. A fee of $40 will apply to non-NDRC
attendees and can be paid during in-person registra-
tion on May 27, 2008. Registration and background
information can be found on the USEA website at:
www.usea.org/natural-gas-training/index.htm.
Check back soon on the USEA and CMOP websites
for venue details. To learn more about event spon-
sorship opportunities, contact Marjorie Jean-Pierre at
mjean-pierre@usea.org or 1-202-312-1230.
Elk from page 2
coal mines. The Forest Supervisor's final decision to
uphold approval of West Elk's proposed expansion and
degasification plans (which does not require the mine
to consider flaring) was based at least in part on this
uncertainty.
Next Steps
Methane is not regulated as a pollutant under the
Clean Air Act, and its mitigation is not mandated by
existing federal law. Nonetheless, a number of U.S.
coal mining companies have been voluntarily engaged
in coal mine methane recovery and utilization projects
that generate significant profits, while substantially re-
ducing U.S. coal mine methane emissions. In 2006,
U.S. coal mines captured and recovered over 46 billion
cubic feet (Bcf), equivalent to 19 million metric tonnes
of CO2 equivalent. The West Elk ROD process re-
vealed to law makers, regulators, and the public the
obstacles that can stymie such environmentally-friendly
and economically-sound activities. As a result, the will
to address some of these obstacles is stronger than
ever. EPA's Coalbed Methane Outreach Program
(CMOP) plans to collaborate with sister agencies such
as MSHA, FS, and BLM to make it easier and more
straightforward for a coal mine to reduce its GHG emis-
sions voluntarily. &
M2M Update from page 3
Four New Countries Join the Methane to Markets
Partnership
Mongolia, the Philippines, Thailand, and Pakistan
have become members of the Methane to Markets
Partnership. Both Mongolia and Pakistan have coal
resources. Joining the M2M program will enable these
countries to benefit from the methane recovery experi-
ence of companies and institutions in other Partner
countries.
For additional info visit:
www.methanetomarkets.org ©
www.epa.gov/coalbed
www.methanetomarkets.org
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Spring 2008
Page 5
COALBED METHANE EXTRA
EPA Launches Feasibility Studies in China
The United States Environmental Protection Agency
(EPA) has launched three full-scale feasibility stud-
ies in China that will assess the technical and eco-
nomic viability of implementing coal mine methane (CMM)
utilization projects at specific mine sites. EPA will provide
technical expertise and tools to conduct the necessary
analyses, which are scheduled to be completed by early
2009.
These projects support the goals of the Methane to
Markets Partnership. EPA's assistance is also part of the
U.S. commitment to help develop up to 15 coal mine meth-
ane (CMM) projects under the second U.S.-China Strate-
gic Economic Dialogue (SED).
EPA has already partnered with two companies in
China to conduct these studies:
> Sakel Coal, a consortium of two U.S. companies
and the Hebi Coal Administration , was formed to
develop the CMM resources of six mines in the
Hebi coal mining area (located in China's central
Henan Province). The feasibility study will be con-
ducted by EPA contractor Advanced Resources
International. This project is estimated to reduce
GHG emissions by up to 250,000 metric tons of
CO2e each year, equivalent to removing up to
45,000 passenger vehicles from the roads each
year. This feasibility study is also considered a
"Flagship Project" under the Asia-Pacific Partner-
ship on Clean Development and Climate Coal Min-
ing Task Force.
> Songzao Coal Mining and Electricity Company,
wholly owned by Chongqing Energy Investment
Group. The feasibility study will be conducted by
EPA contractor Raven Ridge Resources. Based
on a preliminary assessment, estimated emissions
reductions from this project are 60 to 100 million
cubic meters (2.1 to 3.5 million cubic feet) of
methane a year, equivalent to between 0.8 and
1.4 million metric tons of CO2e avoided per year.
This is equivalent to removing up to 250,000 pas-
senger vehicles from roads each year.
A site for the third feasibility study, to be conducted by
Advanced Resources International, has not yet been se-
lected.
A feasibility study is a critical step in developing a
CMM project and includes the following components:
an analysis of methane resource data,
a market assessment for the produced methane,
an evaluation of degasification and methane utili-
zation technologies,
a technical analysis with preliminary engineering
design work,
an estimate of project capital and operating costs,
and
a full economic and financial analysis with cash
flow projections.
Annual Coal Production and Methane Liberated
at Coal Mines in Hebi
*
TE
2002 2003 2004 2005 20O6 2007 2008 2009 2O10
YEAR
Annual Coal Production and Methane Liberated
at Songzao Coal and Electricity Company Mines
500
300
100
Annual Coal Production
-Annual Volume of Methane Liberated
2002 2003 2004 2005 2006 2007 2008 2009 2010
YEAR
see FEASIBILITY STUDIES, page 10
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Spring 2008
Page 6
COALBED METHANE EXTRA
Proposed FY 2009 Presidential Budget
President Bush's $3.1 trillion fiscal year (FY) 2009
budget request to Congress includes funding for
several programs and agencies related to coal
mining and coal mine methane.
The proposed budget for the U.S. Environmental
Protection Agency is $7.14 billion, slightly lower than the
FY 2008 request of $7.2 and the $7.5 billion budget en-
acted by Congress. The president requests $938.6 million
in FY 2009 for EPA's Clean Air and Global Climate
Change programs, which aim to improve air quality, re-
duce human and environmental health risks and reduce
greenhouse gas intensity by enhancing partnerships with
businesses and other sectors. This request is an increase
from the $910.4 million requested for FY 2008, but is lower
than the $971.7 million enacted by Congress. EPA's FY
2009 proposed budget includes the following:
> $4.4 million for the Methane to Markets program,
which promotes methane recovery and use at
landfills, coal mines, oil and natural gas facilities,
and biological waste management. This request is
identical to the request made in FY 2008.
> $5 million to support the Asia Pacific Partnership
on Clean Development and Climate's international
efforts to reduce greenhouse gas emissions. The
proposed Asia-Pacific funding is the same level
requested for FY 2008.
The president requested $25 billion in overall FY 2009
funding for the U.S. Department of Energy (DOE), up
from the $24.3 billion requested in the FY 2008 budget
and the $23.9 enacted by Congress. The president's re-
quest includes the following:
> $156 million to fund DOE's restructured approach
to funding the FutureGen project, which aims to
demonstrate cutting-edge carbon capture and
storage (CCS) technologies at multiple commer-
cial-scale Integrated Gasification Combined Cycle
clean coal power plants.
> $85 million to support the Clean Coal Power Initia-
tive, an increase over the $73 million requested
last year.
> $407 million for advanced coal research and de-
velopment activities, including $149 million for
Carbon Sequestration Regional Partnerships that
are charged with studying the injection of up to
one million tons of carbon dioxide into geologic
formations.
The president has requested $53.1 billion to fund the
Department of Labor in FY 2009, including $332 million
for the Mine Safety & Health Administration (MSHA),
which oversees all active mines. For coal mine safety and
health, MSHA's proposed budget calls for $145 million, a
drop from the $154.7 million enacted for FY 2008.
For the Department of the Interior (DOI), the presi-
dent's budget request calls for $10.7 billion in FY 09 fund-
ing. This budget includes the following:
> For the Office of Surface Mining (OSM), the
budget includes:
• $298.4 million in Abandoned Mine Land (AML)
Reclamation grants to states and tribal gov-
ernments.
• $30.8 million for abandoned mine reclamation
appropriations.
> The proposed Bureau of Land Management (BLM)
FY 2009 budget request is $1.002 billion, including
$35 million to fund the Mining Law Administration
program.
For additional information:
The president's FY 2009 budget request is available at:
www.whitehouse.gov/omb/budget/fy2009/
Information on the President's FY 2009 budget request for
EPA: www.epa.gov/ocfo/budget/index.htm tf
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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Spring 2008
Page 7
COALBED METHANE EXTRA
Update - Legislative Activity on the Hill
The remainder of the second
session of the 110th Congress
has potential for important leg-
islative activity related to climate
change. Several bills that would im-
pose a mandatory cap-and-trade
emissions reduction program have
already been introduced. On Decem-
ber 5th, the Senate Environment and
Public Work Committee voted 11 -8 to
favorably report the Lieberman-
Warner Climate Security Act (S.
2191). This is the first greenhouse
gas (GHG) cap-and-trade bill that has
ever been voted out of a Congres-
sional committee.
U.S. EPA recently analyzed the
economic and GHG impacts of S.
2191 and found that relative to the
reference case scenario, S. 2191
would reduce U.S. GHG emissions by
about 40 percent in 2030 and by
about 56 percent in 2050. Compared
to historical emissions, emissions un-
der S. 2191 would be approximately
11 percent lower than 1990 levels in
2030 and 25 percent lower than 1990
levels in 2050. According to EPA's
analysis, the electricity sector pro-
vides the greatest source of emis-
sions reductions, largely through an
expansion of nuclear power and de-
ployment of carbon capture and stor-
age (CCS). With enabling technolo-
gies widely available, electricity prices
are projected to increase 44 percent
by 2030 and 26 percent by 2050.
The Energy Information Admini-
stration (EIA) is likely to make the
results of its analysis of S. 2191 avail-
able to the public by mid- to late-April.
Several other cap-and-trade pro-
posals have been introduced in the
110th Congress. Table 1 summarizes
the major proposals. Figure 1 illus-
trates the GHG emission targets of
see LEGISLATIVE ACTIVITY, page 8
Table 1. Economy-Wide Cap-and-Trade Proposals in the 110 Congress
Lieberman -
Warner
(S. 2191)
Bingaman -
Specter
(S. 1766)
McCain -
Lieberman
(S. 280)
Sanders -
Boxer
(S. 309)
Kerry -
Snowe
(S. 485)
Olver-
Gilchrest
(H.R. 620)
Waxman
(H.R. 1590)
Scope of Coverage
AII6GHGS
Economy wide - upstream for transport
fuels & natural gas; downstream for
large coal users; separate cap for HFC
consumption
AII6GHGs
Economy wide - upstream for natural
gas & petroleum; downstream for coal
AII6GHGs
Economy wide - upstream for transpor-
tation sector; downstream for electric
utilities & large sources
AII6GHGS
Economy wide - not specified
AII6GHGS
Economy wide - not specified
AII6GHGs
Economy wide - upstream for transpor-
tation sector; downstream for electric
utilities & large sources
AII6GHGS
Economy wide - not specified
2010-2019 Cap 2020-2029 Cap
4% below 2005 level
in 2012
2012 level in 2012
2004 level in 2012
2010 level in 2010
2% per year reduc-
tion from 2012-2020
2010 level in 2010
2004 level in 2012
2009 level in 2010
2% per year reduc-
tion from 2011-2020
19% below 2005
level in 2020
2006 level in 2020
1990 level in 2020
1990 level in 2010
1990 level in 2020
2.5% per year
reduction from
2020-2029
1990 level in 2020
1990 levels in 2020
5% per year reduc-
tion from 2020-
2029
2030-2050 Cap
71% below 2005 level in 2050
1990 level in 2030
President may set long-term target
>60% below 2006 level by 2050 contin-
gent upon international effort
20% below 1990 level in 2030
60% below 1990 level in 2050
27% below 1990 level in 2030
53% below 1990 level in 2040
80% below 1990 level in 2050
3.5% per year reduction from 2030-2050
22% below 1990 level in 2030
70% below 1990 level in 2050
5% per year reduction from 2030-2050
80% below 1990 levels in 2050
Source: Modified from Pew Center on Global Climate Change, Comparison of Economy-Wide Cap-and-Trade Proposals in the 110
(January 2008) www.pewclimate.org
Congress
If you don't receive our weekly email updates, CBM Notes, go to
www.epa.gov/coalbed/join/index.html to sign-up now!
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Spring 2008
Page 8
COALBED METHANE EXTRA
New Publications!
CMOP Publishes Revamped Re-
port on CMM Upgrading Technolo-
gies
In its new report, Upgrading
Drained Coal Mine Methane to Pipe-
line Quality (PDF), (26 pp, 379K) the
Coalbed Methane Outreach Program
(CMOP) provides an overview of gas
upgrading technologies that can be
used to remove contaminants typi-
cally found in coal mine methane
(CMM). This report provides several
examples of successful technology
installations in operation at coal
mines today. The report's appendix
contains profiles of vendors with com-
mercially-available technologies as
well as technologies in the demon-
stration and R&D phases. The report
can be found on the CMOP website,
along side other resources (click on
"Implementing a Project" under
"Documents"): www.epa.gov/cmop/
resources/imp_proj.html
Draft 2008 "Inventory of U.S.
Greenhouse Gas Emissions and
Sinks" Available
The U.S. Environmental Protec-
tion Agency has issued a draft of its
annual report that analyzes sources
of greenhouse gas emissions, Inven-
tory of U.S. Greenhouse Gas Emis-
sions and Sinks: 1990-2006.
The major finding in this year's
draft report is that overall emissions
during 2006 decreased by 1.5 per-
cent from the previous year. This de-
crease was due primarily to a reduc-
tion in carbon dioxide emissions as-
sociated with fuel and electricity con-
sumption. Total U.S. greenhouse gas
emissions in 2006 were about 7,202
million metric tons of CO2 equivalent
based on emissions of carbon diox-
ide, methane, nitrous oxide, hydro-
fluorocarbons, perfluorocarbons, and
sulfur hexafluoride. Overall, emis-
sions have grown by 14.1 percent
from 1990 to 2006 while the U.S.
economy has grown by 59 percent
over the same period.
More information: www.epa.gov/
climatechange/emissions/
usinventoryreport.html
United States Coalbed Methane
Maps - UPDATED
The Energy Information Admini-
stration's coalbed methane resources
map and data (including a spatial
data file of thelOO gassiest U.S. un-
derground coal mines) are now
posted on the EIA website and are
downloadable at:
www.eia.doe.gov/pub/oil_gas/
natural_gas/analysis_publications/
maps/maps. htm#Top
Legislative Activity.
page 7
the various proposals, according to
analysis by the Pew Center on Global
Climate Change. These legislative
proposals include coverage of the six
major greenhouse gases (carbon
dioxide, methane, nitrous oxide, per-
fluorocarbons, hydrofluorocarbons,
and sulfur hexafluoride).
U.S. EPA has also conducted
analyses of the economic impacts of
S. 1766 and S.280. See
www.epa.gov/climatechange/
economics/
economicanalyses.html C
-Historical U.S. emissions (EPA, 199G-2005I
-Business-as-usual projection (AE02007)
-Ljeberman-Watner
McCain-liebemian
OI«r-Gi!clirest
-Sanders-Boxer/ Waxman
-Kaiy-Snoive
-Bingaman-SDecter policy
Bingaman-Specterg-oai
Source: Pew Center on Global Climate Change, Comparison of Economy-Wide Cap-and- Trade Proposals in the 110th Congress (January 2008)
2020
Year
Figure 1. Illustration of Total U.S. GHG Emissions Targets in Legislative Proposals
Courtesy of the Pew Center on Global Climate-www.pewclimate.org
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Spring 2008
Page 9
COALBED METHANE EXTRA
CBM/CMM News
China's Coalbed Methane Re-
sources Make News
An article appearing in Busi-
nessWeek (3 January 2008) empha-
sizes the importance of coal to China
and discusses the country's efforts to
take advantage of coalbed / coal
mine methane by using it to power
steel mills, heat homes, and fuel pub-
lic buses and taxis. Until recently,
most Chinese coal mines have simply
released coal mine methane (CMM)
directly into the atmosphere. The
Chinese government has set an am-
bitious target to increase coalbed
methane (CBM) use from 3% of the
country's total natural gas consump-
tion in 2006, to 10 billion cubic me-
ters, or 10% of total gas use, by
2010. The article highlights the nu-
merous Chinese policies initiated in
the past 18 months, designed to
achieve this goal.
According to the article, in the
past year or so foreign investment in
China's CBM and CMM industries
has skyrocketed. The Kyoto Protocol
has created financial incentives for
Chinese power plants to switch from
coal to coal mine methane, since they
are eligible for carbon credits under
the Clean Development Mechanism
(COM). China's CBM industry is cur-
rently constrained by the existing
pipeline infrastructure capacity. Until
pipelines are built connecting natural
gas fields in Central and Western
China to cities along the coast, coal-
bed methane companies must com-
press or liquefy methane and ship it
as liquefied natural gas (LNG) or
compressed natural gas (CNG) to
gas stations and other customers.
BusinessWeek, 3 January 2008
www.businessweek.com/globalbiz/
content/jan2008/
gb2008013_784582.htm?
chan=top+news_top+news+index_
global+business
Wall Street Banks Establish The
Carbon Principles
Three of the world's leading fi-
nancial institutions announced the
formation of The Carbon Principles,
climate change guidelines for advi-
sors and lenders to power companies
in the United States. These Principles
are the result of a nine-month inten-
sive effort to create an approach to
evaluating and addressing carbon
risks in the financing of electric power
projects.
Citigroup Inc., J.P. Morgan
Chase & Co., and Morgan Stanley
say they expect a federal green-
house-gas-emissions cap in the next
few years that will make conventional
coal-fired power plants riskier invest-
ments. Given the current uncertainty,
the banks plan to make conservative
assumptions as they screen power-
plant financing requests. Under the
Carbon Principles, the banks will re-
quire companies applying for coal-
fired power-plant financing in the U.S.
to show they've evaluated energy-
efficiency and renewable-energy op-
tions and found them insufficient. As
for proposed coal plants, the banks
will seek evidence that the plants are
designed with the capacity to capture
and store underground their future
carbon-dioxide emissions, or that the
plants will be able to charge high
enough electricity rates to pay for
extra emission allowances.
For additional information see
Citigroup's press release issued 4
February 2008 at:
www.citigroup.com/citigroup/
press/2008/080204a.htm
Environmental Capital (WSJ Blog), 4
February 2008 blogs.wsj.com/
environmentalcapital/2008/02/04/
wall-street-tells-big-coal-not-so-
fast/trackback/
Trade Group Expects Record Coal
Demand in 2008
The National Mining Association
expects 1.16 billion tons of coal to be
mined this year in the U.S., topping
the 1.15 billion tons mined last year
and 2 million tons shy of the produc-
tion record set in 2006.
Greenwire, 24 January 2008
www.greenwire.com (subscription
required)
International Coal Price Predicted
to Hit Record
Merrill Lynch has raised its fore-
casts for contract prices of coal for
power plants and steel mills in 2008,
predicting that prices will jump by as
much as 200 percent, after recent
supply disruptions resulted in a se-
vere global shortage. The bank pre-
dicted that contract prices for coking
coal, used to make steel, will reach a
record high of $300 a tonne, a three-
fold rise from last year, due to recent
supply disruptions from Australia,
China, and South Africa, combined
with powerful Asian demand.
Brokerage Goldman Sachs JB
Were predicted that prices for coking
coal and thermal coal would reach
$200 a tonne and $130 a tonne, re-
spectively.
Reuters, 7 March 2008
in.reuters.com/article/
businessNews/idlNlndia-
32348920080307?sp=true W
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Spring 2008
Page 10
COALBED METHANE EXTRA
SAVE THE DATE!
2008 U.S. CMM Conference
28 - 30 October 2008
Omni William Penn Hotel
Pittsburgh, PA
U.S. EPA is pleased to
announce this year's U.S. Coal Mine
Methane Conference. After a
successful 2007 conference in St.
Louis, the EPA's Coalbed Methane
Outreach Program (CMOP) aims to
bring you a bigger and better event
in 2008 with an in-depth look at new
projects, project updates, industry
forecasts, new technologies, and
more.
We'll also take discussions
about coal mine methane out of the
conference room and into the field,
with a can't-miss field trip to a
nearby Consol Energy/CNX Gas site
to observe its advanced
degasification and methane recovery
operation.
This year's conference takes
place at the Omni William Penn
Hotel, a luxury hotel in downtown
Pittsburgh close to many of the city's
best attractions. EPA has secured a
limited number of rooms at the
government per diem rate - currently
$108.00 per night - for the
conference. To make your
reservations, simply call 1-800-THE-
OMNI, and mention the U.S. Coal
Mine Methane Conference to
receive this special rate.
Look for more details, agenda,
and registration information for the
2008 U.S. Coal Mine Methane
Conference, soon to be posted
online atwww.epa.gov/cmop/conf/
index.html. You may also e-mail
meetings@erg.com for more
information about the event.
We look forward to seeing you in
Pittsburgh!
Feasibility Studies. / e5
The results of the technical analyses will be summarized along
with project implementation recommendations in a comprehensive
final report.
China is the world's largest coal producer and has significant op-
portunity to recover and utilize coal mine methane emissions as a
clean energy source. The U.S. and China have worked collaboratively
together since the early 1990s to promote the development of CMM
recovery and utilization projects. In 1994, EPA and China established
a Coalbed Methane Clearinghouse, operated by the China Coal Infor-
mation Institute (CCII) within the State Administration of Worker Safety
(SAWS). EPA continues to support the Clearinghouse in their efforts
to advance CMM development in China. The U.S. and China continue
to work together through the Methane to Markets Partnership to ad-
vance coal mine methane recovery in China. Both the Sakel Coal and
Songzao Mine sites were featured as project opportunities at the 2007
Partnership Expo in Beijing, China (www.methanetomarkets.org/
events/2007/all/expoprojects.htm). tf?
CMOP Contacts
Address inquiries about the Coalbed Methane
Extra or about the USEPA Coalbed Methane
Outreach Program to:
Pamela Franklin
Phone: 202-343-9476
E-mail: franklin.pamela@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
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Spring 2008
Page 11
COALBED METHANE EXTRA
Upcoming CBM/CMM Events
6th Annual CoalTrans China
14-15 April 2008
Beijing, China
Website: www.coaltrans.com/default.asp?
Page=11&eventid=ECK179
Miningworld Russia
16-18 April 2008
Crocus Expo
Moscow, Russia
Website: www.primexpo.ru/mining/eng
2008 AAPG Annual Convention
20 - 23 April 2008
San Antonio, Texas
Program themes include Hydrocarbons from Shale & Coal
Website: www.aapg.org/sanantonio/
North American Coalbed Methane (NACBM) Spring
Forum
29 - 30 April 2008
Hilton Garden Inn - Southpointe
Canonsburg, Pennsylvania
Contact: K. Aminian
Email: khaminian@mail.wvu.edu
Methane to Markets Coal Subcommittee Meeting
29 - 30 April 2008
Cagliari, Sardinia, Italy
Website: www.methanetomarkets.org/events/2008/coal/
coal-29apr08-2.htm
Coal Prep 2008
29 April - 1 May 2008
Lexington Center
Lexington, Kentucky
Website: coalaggprepshow.com/CoalPrep2008/Public/
MainHall.aspx?ID=1676
Carbon Expo
7 - 9 May 2008
Cologne, Germany
Website: www.carbonexpo.com/
2008 Coalbed and Shale Gas Symposium
19-23 May 2008
The University of Alabama Bryant Conference Center
Tuscaloosa, Alabama
Website: www.coalbed.ua.edu/
USEA - U.S. EPA - USTDA Workshop: CBM Power
Generation
28-31 May 2008
Dalian City, Liaoning Province, China
Contact: Marjorie Jean-Pierre
Email: mjean-pierre@usea.org
Website: www.usea.org/natural-gas-training/index.htm
12th U.S. / North American Mine Ventilation Sympo-
sium
9-11 June 2008
The University of Nevada, Reno
Reno, Nevada
Website: www.unr.edu/ventsymp2008/
China Clean Coal Summit 2008
26-27 June 2008
Shanghai, China
Contact: Boris Xiong
Telephone: +86 21 6247 8898
Email: boris.xiong@merisis-asia.com
CMM Recovery and Utilization Workshop
16-17 July 2008
Guiyang, Guizhou, China
Contact: Katie Scott
Email: kscott@gzcmm.org
Website: www.gzcmm.org/
7th European Coal Conference
26-29 August 2008
Lviv, Ukraine
Contact: Dr. Andriy Poberezhskyy
Phone: (0322) 635-047
Email: igggk@mail.lviv.ua
Website: www.iggcm.org.ua
2008 Asia Pacific Coalbed Methane Symposium
22-24 September 2008
Brisbane, Australia
Website: www.uq.edu.au/apcbm2008/
MINExpo International 2008
22-24 September 2008
Las Vegas Convention Center
Las Vegas, Nevada
Phone: 630-434-7779
Email: minexpo@heiexpo.com
Website: www.minexpo.com
The 25th Annual International Pittsburgh Coal Confer-
ence
29 September - 2 October 2008
The Westin Convention Center
Pittsburgh, Pennsylvania
Website: www.engr.pitt.edu/pcc/2008%20Conference.htm
2008 U.S. CMM Conference
Sponsored by EPA's Coalbed Methane Outreach Program
28 - 30 October 2008
Omni William Penn Hotel
Pittsburgh, Pennsylvania
Email: meetings@erg.com
Website: www.epa.gov/cmop/conf/index.html
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