COAL BED METHANE POTENTIAL OF THE EASTERN KENTUCKY COAL FIELD

The Eastern Kentucky Coal Field (EKCF) occurs along the western margin of the Central Appalachian Basin. Although the EKCF has an estimated 53 BT of remaining resources, production has steadily decreased over the past five years. In 2002, 98.9 million short tons of coal were produced in eastern Kentucky, down by 10.2 million short tons from the previous year. This trend is partially the result of declining reserves of thick coal, and stringent air quality standards mandated by the 1990 Clean Air Act Amendments. Other factors that have contributed to a decline in production include intense competition from low sulfur western U.S. coal, and an increasing trend towards the use of natural gas for new electric power production. The production of coal bed methane (CBM) in the EKCF may be one way to exploit this extensive energy resource. Methane is a much cleaner-burning fuel from an emissions standpoint, and the production of CBM has a negligible effect on the local environment compared to coal mining, especially surface mining. CBM could also play a major role in providing the hydrogen needed to power fuel cells that are being fast-tracked for implementation in the electric power and transportation industries. Although CBM has seen an expansion in production in neighboring Virginia and West Virginia, the EKCF has remained largely dormant. This is mainly due to historical gas content data that shows coals in the EKCF to have low methane contents. However, other data suggest the presence of economic CBM. Federal Mine Safety and Health Administration ventilation experts indicate that where the Pond Creek coal (a major economic coal bed in eastern Kentucky) is mined below drainage, 500,000 to 1,000,000 cubic feet of methane are commonly liberated daily. Likewise, indirect calculations using coal thickness and quality data indicate a median value of 324 cubic feet of CBM per short ton for below drainage coal beds in the EKCF. Collectively, we believe that these data, along with the increased demand for natural gas, and higher gas prices that are currently being seen, justify the need for increased exploration.