RECENT COAL BED METHANE ACTIVITY IN WEST VIRGINIA

Rules related to coal bed methane drilling and production (West Virginia code§22-21-1 et. seq.) took effect on June 1, 1996. Enactment of these rules opened the door for modern coal bed methane exploration and development. A coal bed methane review board was set up to resolve disputes related to proposed CBM wells.

West Virginia historic coal bed methane production, mostly from the northern part of the State (Big Run and Pine Grove fields) began in 1932 with an accidental discovery of methane from the Pittsburgh coal as a well was being plugged. Some historic production was reported from the Welch field in McDowell County.

In 1989, US Steel began a program of venting ahead of mining, in Wyoming and McDowell counties. The gas production part of this effort was spun off to a new company, CDX Gas, LLC. The wells, producing from the Pocahontas 3 seam, have evolved from simple, vertical boreholes to elaborate, tree-shaped multilateral horizontal holes. Total reported production from this project is about 20 Bcf through 2002. This technology has been migrated to western CBM basins such as the San Juan.

About 300 new CBM wells have been drilled in WV and additional wells continue to be permitted. More than 25 Bcf of gas has been reportedly produced from CBM wells from 1992-2002. Deep coal seams have potential for sequestering carbon dioxide, and a program in northern WV is evaluating Allegheny coal seams for suitability.