Coalbed Methane Assessment and Analysis of Produced Water Disposal Options, Northern Cheyenne Reservation, Montana Project FEW Shaochang Wo, Principal Investigator Idaho National Engineering and Environmental Laboratory Jesse Garcia, DOE Project Manager

Northern Cheyenne Objectives  Determine the best coalbed methane development scenarios and water handling

Environmental Benefit - Water Issues, Northern Cheyenne  Water is of sufficient quality for domestic and livestock uses  The Coalbed water is unusable for irrigation for most of the soils in the area

Northern Cheyenne Project Results  Geology complete  Methane reserves calculated  Produced water to be reinjected in sandstone formations and stored for later use

Gas Environmental Program Technology and policy solutions for the environmental barriers that limit domestic production  Federal Lands Access  Reduce Permitting Times  Science-based Stipulations  Coal Bed Natural Gas - Water Issues  Treatment Technologies  Educational Materials

Provide data on the term effects of coalbed methane production on coal seam aquifers Provide impact analyses of coalbed methane production on wildlife species of concern (such as threatened and endangered species) and, where necessary, develop mitigation strategies that allow development to proceed while protecting the environment Resolve questions surrounding the environmental effects of hydraulic fracturing. Goal: By 2010 provide the solutions to current environmental issues and questions that will allow a 25% increase in natural gas produced from coal seams. Coalbed Methane (CBM) Issues/Barriers: CBM development, especially in the West, is a fairly recent phenomenon and new issues may arise Water issues surrounding CBM development, especially in the West, have become an emotionally charged and all barriers cannot be resolved through science or technology. Hydraulic fracturing continues to be an issue despite strong evidence, endorsed by the EPA, that hydraulic fracturing does not cause contamination of underground sources of drinking water. The NEPA process in Montana is moving slowly and once it is completed, litigation may cause further delays in CBM development Develop best management practices for treating and/or discharging coalbed methane water to the surface Provide fate and transport data to determine the environmental impacts of infiltration ponds in the Powder and Tongue River basins.

ADIS AREA METRICS High Resolution Reservoir Characterization Using Seismic, Well and Dynamic Data  New 3D streamline simulator integrates production, seismic, and well log data  Now used in West Texas  10 to 1,000 times faster  Potential to enable 400 MMBLS of additional oil and 26 Tcf natural gas from low-permeability reservoirs Permeability field derived from inversion of water-cut data in the highly heterogeneous North Robertson Unit, West Texas

Mission and Goals Mission: Encourage Maximum Recovery and Use of Domestic Oil and Gas Resources by Improving Environmental Protection Provide improved and advanced technologies that enable industry to reduce compliance costs and improve environmental protection Develop sound scientific data to support cost effective, risk-based regulatory decisions by State and Federal agencies Improve communication and technology transfer among industry, government, and the public Streamline regulatory processes to maximize use of oil and gas

Gas Environmental Program Technology and policy solutions for the environmental barriers that limit domestic production  Federal Lands Access  Reduce permitting Times  Science-based Stipulations  Coal Bed Natural Gas - Water Issues  Treatment Technologies  Educational Materials

Gas Environmental Program (Cont’d)  Federal Lands Access  Cultural Resources Modeling  Protects resources and reduces survey time and costs by 75%  Visibility Science  Air chemistry data to allow 150% increase wells on Federal Lands in WY  Coal Bed Natural Gas - Water Issues  Impoundment Study  States and Federal agencies working together to understand and document the benefits and concerns of infiltration ponds  Educational Materials for Producers, Regulators and the Public  CBNG Best Practices Manual  Permitting Handbook  CBNG Primer for the General Public