CBM DEVELOPMENT IN ECL MINING LEASEHOLD International Workshop on best practices in Methane Drainage and use in coal mines. 9-10 th March 2017 Venue: Radisson Blu, Ranchi , Jharkhand, India

Development of clean coal technology CBM Development in ECL Mining Leasehold Development of clean coal technology USEPA estimates, coal mining contributes to about 8% of the anthropogenic methane emission to the atmosphere apart from other Green house gases like CO2 during power generation from coal. To make the CBM is a priority both at Government and Industry level. Raniganj Coalfields under the command area of ECL have high vertical seam density , matured quality of coal with moderate to high gas content. Mostly upper seams have been worked out or under active mining operation while the lower seams are virgin. CBM studies indicates good gas content.

CBM RESERVES IN INDIA Government had formulated Coal Bed Methane (CBM) policy in 1997 with an objective of commercial exploration of CBM in the country   country has a total of 52000 sq km area under Gondwana basin of which about 26000 sq km area was identified for CBM operations. CBM is explored and exploited under the provisions of Oil Fields (Regulation and Development) Act 1948 (ORD Act 1948) and Petroleum & Natural Gas Rules 1959 (P&NG Rules 1959) Four rounds of CBM bidding have been undertaken in the year of 2001, 2003, 2005 & 2008 resulting in award of 33 CBM Blocks covering 16,613 sq. km.  current domestic production of CBM is only 1.07 MMSCMD in 2015-16 and expected to increase to 5.77 MMSCMD by 2017-18.

GSI SURVEY GSI carried out CBM study in 51 boreholes in Raniganj, Birbhum, Rajmahal, Talcher, Ib-River, Mand-Raigarh, Sohagpur and Tatapani-Ramkola coalfields during X to XII Plan Period. Coalfields with high rank (VRo mean ≥0.70%) areas are prioritized for baseline data generation for Shale gas / CBM exploration. High rank and thermal history of Raniganj, Jharia and East Bokaro coalfields of Damodar-Koel valley Basin are favourable for shale gas/CBM exploration and commercial exploitation.

Cont… CBM biding rounds –I, II, III & IV were undertaken in the year 2001, 2003, 2005 & 2008 respectively and round wise number of blocks awarded are 5, 8, 10 & 7 respectively. 2 more Blocks were awarded through Nomination and 1 through FIPB (Foreign Investment Policy Board). Raniganj (South) is under this FIPB operated by GEECL.

Cbm resources in India state wise The MoPNG in consultation with Ministry of Coal and CMPDI has identified 26000 sq km of area for CBM operation. Total estimated CBM Resources in this identified area is about 2600 BCM (91.8 TCF). State wise distribution of the resources along with established reserves is given below:

CBM Development in ECL Mining Leasehold CBM blocks allotted by the government in different stages in Raniganj Coalfield. Raniganj South CBM block: Covers an area around 210 sq.km , Awarded to M/s GEECL , Prognosticated Resource 28 BCM. Block under operation. Raniganj East CBM block: Covers an area around 500 sq.km, Awarded to M/s Essar Oil Limited, Prognosticated Resource 43 BCM. Block under operation. Raniganj North CBM block: Covers an area around 350 sq.km containing two non-contiguous area awarded to Consortium of ONGC and CIL . Block is not under operation. The Ministry of Coal, Government of India vide OM F.No. 34018/1/2014-CRC-II (pt.) dt. 29th July’15 has conveyed the approval of the competent authority permitting Coal India Limited to explore and exploit CBM from areas under its coal mining lease.

Allotted different CBM blocks with CBM/CMM project limit

CBM/CMM development in CIL leasehold areas In view of the high degree of gassiness of the underground mines , proximity to Salma Dyke are and the existence of established CBM blocks in the Coalfield, a “Raniganj CMM Block” under ECL mining leasehold area has been delineated with an objective of exploiting CBM from active coal mining area. The delineated block includes parts of Kunustoria, Sripur and Satgram Area of ECL as coal column of seam VI and below found to be virgin in these areas. A block of 57.83 sq.km has been delineated as which includes (i) Complete Virgin Area (11.07km) (ii) Complete Virgin Area below Damodar river (6.35km) (iii) Area under overlying developed seams (40.41km).

Mine workings & Geology of present CMM/CBM Project

Sector wise Developed & Virgin Block

CBM Blocks Raniganj Coalfield

Area Category of the Identified Block S.N. AREA CATEGORY Area sq. km 1 Complete virgin Area 11.07 2 Complete Virgin Area below Damodar river 6.35 3 R-VI & Below Virgin Under single seam working(R-VIII) 7.25 4 R-VI & Below Virgin Under multiple seams working 33.16 TOTAL 57.83

DEPTH RANGE & SEAM SEQUENCE OF THE TARGETED SEAM Depth Range (m) Thickness Range (m) R-VI 150-375 2-5 R-V 200-450 1-2 R-IV 360-620 3-6 R-III 450-670 2-4 R-II 530-780 R-I 580-840 1-3

CURRENT STATUS OF CBM/CMM PROJECT IN RANIGANJ COPALFIELD REPORT OF RESERVOIR MODELLING TECHNO-ECONOMIC FEASIBILITY STUDY IS NOT YET RECEIVED . CMPDI HAS AWARDED THIS WORK TO ARI , USA AND THE REPORT IS EXPECTED and ACTION PLAN HAS BEEN DRAWN FOR COMMERCIAL EXTRACTION OF CMM FROM THE IDENTIFIED BLOCK FROM AUGUST 2020 GEOLOGICAL INPUT AND GAS-IN-PLACE RESOURCES HAS BEEN ESTABLISHED . PR WILL BE SUBMITTED BY CMPDI AFTER RECEIVING THE REPORT FROM ARI , USA. EXPECTED DATE OF SUBMISSION BY AUGUST 2017

Total Gas-in-Place Resource Projections have been used to arrive at a seam wise average gas content . Total Gas-in-Place Resource   CIIP(BCM) Total CIIP(BCM) Virgin Area below Developed Area 2.20 3.93 Virgin Area 1.17 Area below Damodar River 0.56

TECHNOLOGICAL CHALLANGES UG mines having old water filled goaves/ mine working coupled with complex geological conditions. Recovery of methane from virgin coal seams (some of which are de- stressed) below the worked out seams require comprehensive approach for safe and economic operation. Drilling for methane drainage upto lower virgin seams to pass through worked out/ goaved of upper seams. A very close coordination of the CBM operator with the mine operators will be needed to deal with this problem. For safe operations and management, it is imperative that CBM extraction take due consideration of on-going operational condition of the mine and no way can jeopardize the safety concerns. Extraction of CBM/CMM from the working mine areas particularly underground requires issues of safety for men & mines to be duly addressed.

Continued Technological Challenges Connection of water-logged worked out coal seams with active working is to be guarded against. Activity like hydro fracturing etc. requires, full understanding of its implication on coal mining. For exploitation of CBM from seam below working, sufficient safe surface area above standing on pillars/barriers of worked out seam need to be available so that optimum no. of wells can be placed without compromising safety and future mining program .

Pre-Feasibility Study for Methane Drainage and Utilization at the Chinakuri Colliery, Sodepur Area, West Bengal State, Burdwan District, India Chinakuri Mine No. 1 is a Degree III gassy mine, the highest category for methane emissions in India. Substantial coal reserves (68.46 Mt) remain in the virgin portion of Seam R-IV at depths greater than 700 m. Coal India Ltd. and Eastern Coalfields Limited have expressed an interest in pursuing a methane pre-drainage program at Mine No. 1. Galleries and longwall panels were developed at Mine No. I up until 1994 to a depth of 700 m. Presently, there is no active mining in the southern boundary of Chinakuri Mine No. I.

CHINAKURI MINING AREA LOCATION

CHINAKURI MINE NO.1

MINE CHARACTERISTICS OF MINE NO.1 The coal thickness of Seam R-IV varies from 2.64 to 5.54 m. The grade of the coal is Semi-Coking-I to Semi-Coking-II. Seam R-IV (Dishergarh) Reserve Details Virgin Areas Reserve (Mt) Total Virgin 68.46 Developed Areas (Room and Pillar) West Side Area 1.18 East Side Area 2.96 Total S.O.P 4.14 Grand Total 72.60

MARKET INFORMATION Chinakuri Mine No. I is about 12 km from Asansol. The nearest airport is Andal, which is approximately 45 km away . The state’s largest industrial centers are Asansol, Kolkata, and Durgapur. Coal is the predominant source of energy in West Bengal, but demand for natural gas has steadily increased over the years. Being a cleaner and more efficient fuel than coal . CMM, which is essentially natural gas, is the cleanest burning and most versatile hydrocarbon energy resource available. Onsite electricity generation appears to be the most practical utilization option in the local and regional CMM market .

CBM GAS PRODUCTION SINCE INCEPTION   CBM GAS PRODUCTION SINCE INCEPTION (in MMSCM) Block Name Operator 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 Grand Total JHARIA ONGC 3.559 2.949 3.378 2.479 2.04 14.405 MMscmd 0.009751 0.0081 0.009255 0.006791 0.00557 RANIGANJ EAST Essar Oil 9.066 12.827 35.359 91.331 236.499 385.082 Ltd 0.025 0.035 0.097 0.25 0.646 RANIGANJ SOUTH GEECL 19.786 38.402 41.362 70.04 88.021 121.13 132.351 152.924 664.016 0.054 0.105 0.113 0.192 0.24 0.332 0.363 0.418 SOHAGPUR EAST RIL 0.381 2.24 4.502 0.572 0.023 7.718 0.001045 0.0061 0.012333 0.001567 6.3E-05 SOHAGPUR WEST 1.144 1.2 1.149 1.506 1.382 6.382 0.003135 0.0033 0.003149 0.004126 0.00378 84.191 107.24 165.518 228.239 392.868 684.735 Grand Total (MMscmd) 0.231 0.293 0.453 0.625 1.073

Reservoir Parameters for Seam R-IV at Chinakuri Colliery Value(s) Source / Notes Coal Depth (Top), ft 2296 Based on mine data; Seam R-IV Avg. Coal Thickness, ft 11.0 Based on mine data; Average of Seam R-IV Coal density, g/cc 1.37 Pressure Gradient, psi/ft 0.433 Assumption Initial Reservoir Pressure, psia 997 Calculated from depth and pressure gradient Initial Water Saturation, % 100 Langmuir Volume, scf/ton 393 Analog; Isotherm analysis (Seam R-IV) Langmuir Pressure, psia 615 In Situ Gas Content, scf/ton 243 Calculated from reservoir pressure and isotherm Desorption Pressure, psia Analog; Desorption pressure equal to initial reservoir pressure (fully saturated conditions) Sorption Times, days 3.06 Analog Fracture Spacing, in 2.56

Reservoir Parameters continued Value(s) Source / Notes Absolute Cleat Permeability, md 1.26 Analog Cleat Porosity, % 2.5 Relative Permeability Curve Analog; See following slide Pore Volume Compressibility, psi -1 4 x 10-4 Matrix Shrinkage Compressibility, psi -1 1 x 10-6 Gas Gravity 0.6 Assumption Water Viscosity, centipoise (cP) 0.44 Water Formation Volume Factor, reservoir barrel per stock tank barrel (RB/STB) 1.00 Calculation Completion and Stimulation Assumes skin factor of 2 (formation damage) Well Operation In-mine pipeline with surface vacuum station providing vacuum pressure of 2 psia Well Spacing Three cases: 1, 2 & 3 wells per panel

ECONOMIC ASSESSMENT As illustrated by the reservoir simulation results, there is a significant reduction of in-situ methane content after only one year of pre-drainage. Furthermore, increasing pre- drainage time from three years to five years results in an insignificant incremental reduction. It is assumed a total of 16 longwall panels, each measuring 1,500 m in length by 150 m in width, will be developed within the project area. Assuming a longwall face advance rate of 4 m/day, each longwall panel will take approximately one year to mine. With one and three years of pre-drainage at each longwall panel, degasification and mining of the 16 longwall panels will be completed over a 17 and 19 year project life, respectively (assuming only one active longwall face).

Thank You