coalbed gas in british columbia - llbc.leg.bc.ca2003. pre-tenure open house . nov 2003 meetings with...

Ministry of Energy & Mines

Coalbed Gas in British Columbia

Public Meeting and Open House

Princeton – May 4, 2004

Coalbed Gas in British Columbia

Public Meeting and Open House

Princeton – May 4, 2004


Coalbed gas – a new way to use BC’s coal resourceCoalbed gas – a new way to use BC’s coal resource


Coalbed gas is natural gas found in coal seamsCoalbed gas is natural

gas found in coal seams


90 Trillion cubic feet of potential resource

Today, BC produces 1 Tcf of natural gas a year

BC Coalbed Gas Potential

Klappan & Groundhog

8 Tcf

Peace River60 Tcf

EastKootenay

19 TcfComox0.8 Tcf

Princeton/Tulameen 0.15Tcf

Hat Creek0.5 Tcf


Activity in BCActivity in BC

Early stage exploration Early stage exploration and evaluationand evaluationNo commercial projectsNo commercial projectsIndustry acquiring Industry acquiring petroleum and natural petroleum and natural gas rightsgas rights43 test wells since 1999 43 test wells since 1999 11 Evaluation Projects11 Evaluation Projects


BC Government -Managing Development

Ministry of Energy and

Mines

Oil and Gas Commission

Water, Land and Air ProtectionSustainable Resource Management


Ministry of EnergyRole in Coalbed Gas Development

Ministry of EnergyRole in Coalbed Gas Development

Develops policy and royaltiesDevelops policy and royaltiesIssues petroleum and natural gas rights (tenure)Issues petroleum and natural gas rights (tenure)Identifies geological potentialIdentifies geological potentialWorks with industryWorks with industryWorks with communitiesWorks with communitiesEnvironmental Resource Information ProjectEnvironmental Resource Information ProjectPromotes responsible developmentPromotes responsible development


Princeton/Tulameen CBG Princeton/Tulameen CBG

Resource Resource -- .15 Trillion .15 Trillion cubic feet of cubic feet of resource in resource in Princeton/Princeton/TulameenTulameen

Princeton Princeton -- P&NG rights P&NG rights leased 2003leased 2003

TulameenTulameen –– P&NG P&NG rights leased 2004 rights leased 2004


Princeton/Tulameen CBG Princeton/Tulameen CBG

Community ActivitiesCommunity ActivitiesInfo session 2002 and Info session 2002 and 20032003PrePre--tenure open house tenure open house Nov 2003Nov 2003Meetings with RD and Meetings with RD and council council

First Nations ActivitiesFirst Nations ActivitiesMeetings and projects Meetings and projects


CBG TeamCBG TeamMary Coward, Project Manager, (250) 356Mary Coward, Project Manager, (250) 356--98279827Rolf Schmitt, Environmental Project, (250) 356Rolf Schmitt, Environmental Project, (250) 356--98229822Barry Ryan, Barry Ryan, CoalbedCoalbed Gas Specialist,Gas Specialist, (250) 952(250) 952--04180418Les McDonald, Water Specialist, (250) 489Les McDonald, Water Specialist, (250) 489--85178517Peter Robb, Aboriginal Relations, (250) 952Peter Robb, Aboriginal Relations, (250) 952--05270527Shelley Guthrie, Aboriginal Relations, (250) 952Shelley Guthrie, Aboriginal Relations, (250) 952--05290529

Devin Scheck, CBG Manager, OGC (250)261Devin Scheck, CBG Manager, OGC (250)261--57995799Bruce Bruce CazesCazes, C&E, OGC (250) 261, C&E, OGC (250) 261--57595759Kelly Cook, Landowner Liaison, OGC (250) 261Kelly Cook, Landowner Liaison, OGC (250) 261--57535753Corey Corey JonssonJonsson, Stakeholder Relations, (250) 261, Stakeholder Relations, (250) 261--57895789

REGULATING FOR THE BENEFIT OF ALLREGULATING FOR THE BENEFIT OF ALL

www.ogc.gov.bc.ca

May 4, 2004May 4, 2004

A Presentation by:A Presentation by:

Devin ScheckOil & Gas Program Manager CBM/GDPProject Assessment BranchOIL AND GAS COMMISSION

Our Mission StatementOur Mission Statement“Regulating Oil and Gas Activity”“Regulating Oil and Gas Activity”

• through fair, consistent, responsible and transparent stakeholder engagement

• for the benefit of British Columbians; and

• by balancing environmental, economic, and social outcomes

Purpose of OGCPurpose of OGC

(a)(a) regulate oil and gas activities and regulate oil and gas activities and pipelines in British Columbia in a pipelines in British Columbia in a manner that manner that

(i)(i) provides for sound development provides for sound development

(ii)(ii) conserves oil and gas resources conserves oil and gas resources

(iii)(iii) ensures safe and efficient ensures safe and efficient practicespractices

Purpose of OGCPurpose of OGC cont’dcont’d

(b) ensure that applications that are (b) ensure that applications that are approved are in the public interest approved are in the public interest having regard to environmental, having regard to environmental, economic and social effectseconomic and social effects

(c) encourage the participation of First (c) encourage the participation of First Nations and aboriginal peoples in Nations and aboriginal peoples in processes affecting themprocesses affecting them

(d) participate in planning processes (d) participate in planning processes (e) undertake programs of education and (e) undertake programs of education and

communication in order to advance communication in order to advance safe and efficient practicessafe and efficient practices

OGC AuthoritiesOGC Authorities

• Oil and Gas Commission Act• Petroleum and Natural Gas Act • Pipeline Act• Specified Enactments:

– Forest Act– Forest Practices Code of B.C. Act– Heritage Conservation Act– Land Act– Waste Management Act– Water Act

Roles of the Oil & Gas Roles of the Oil & Gas CommissionCommission

•• Regulatory RoleRegulatory Role•• Consultation RoleConsultation Role•• Dispute Resolution Dispute Resolution

RoleRole

How the OGC RegulatesHow the OGC Regulates

Government Sets Policy (Legislation)Government Sets Policy (Legislation)

OtherGovernmentDepartments Regulations

OtherGovernmentDepartments

First NationsFirst NationsStakeholdersStakeholders

IndustryIndustry

CoalbedCoalbed Methane Methane Assessment & Development StagesAssessment & Development Stages

EVALUATION PHASE:EVALUATION PHASE:•• Test production feasibilityTest production feasibility•• Drill single well (or test hole) and conduct Drill single well (or test hole) and conduct

“completion” “completion” •• Pilot projects (commonly 5 wells or test Pilot projects (commonly 5 wells or test

holes)holes)

DEVELOPMENT PHASE:DEVELOPMENT PHASE:•• Determine economic viabilityDetermine economic viability

PRODUCTION PHASE:PRODUCTION PHASE:•• Full scale commercial projectFull scale commercial project

Issues Issues –– Environmental & Environmental & Safety ConsiderationsSafety Considerations

Surface Land UseSurface Land UsePrivate LandPrivate Land

Landowner agreementLandowner agreementMediation and Arbitration Board OrderMediation and Arbitration Board Order

Competing land uses (i.e. forestry)Competing land uses (i.e. forestry)Wildlife and Fisheries ValuesWildlife and Fisheries ValuesAccess and InfrastructureAccess and InfrastructureGroundwater ProtectionGroundwater ProtectionNoiseNoise mitigationmitigationAir QualityAir Quality

Issues Issues –– Environmental & Environmental & Safety Considerations Safety Considerations cont’dcont’d

Produced Water Produced Water ManagementManagementWLAP / OGC roleWLAP / OGC role

Water Disposal OptionsWater Disposal Options•• ReRe--injectioninjection•• Beneficial useBeneficial use•• Discharge to streamsDischarge to streams•• Discharge to shallow aquifer Discharge to shallow aquifer •• Treatment optionsTreatment options

Water treatment facilityWater treatment facility

Subsurface InjectionSubsurface Injection

Consultation RoleConsultation Role

The Aboriginal Relations & Land Use The Aboriginal Relations & Land Use Branch consults on behalf of the CrownBranch consults on behalf of the Crown

•• Foster relationships with First Nations Foster relationships with First Nations communities communities

•• Act as facilitators between First Nations Act as facilitators between First Nations and industryand industry

•• Enhance decisionEnhance decision--making by integrating making by integrating First Nation input into permit conditionsFirst Nation input into permit conditions

•• Integrate traditional environmental Integrate traditional environmental knowledge with science and researchknowledge with science and research

Dispute Resolution RoleDispute Resolution Role

Proponents are expected to consult with Proponents are expected to consult with the public per OGC Public Involvement the public per OGC Public Involvement GuidelineGuideline•• Local governmentLocal government

•• Landowners, occupants, affected residentsLandowners, occupants, affected residents

Notice of Unresolved ConcernsNotice of Unresolved ConcernsRequest for ReconsiderationRequest for Reconsideration

Alternative Dispute Resolution (ADR)Alternative Dispute Resolution (ADR)

Compliance and Enforcement Compliance and Enforcement BranchBranch

Ensures industry understands, Ensures industry understands, respects, and meets or exceeds respects, and meets or exceeds regulations and standards.regulations and standards.

The C&E Branch believes:The C&E Branch believes:

Compliance is the responsibility of the Compliance is the responsibility of the oil and gas industry, andoil and gas industry, andEnforcement of the regulations is Enforcement of the regulations is necessary to ensure compliance.necessary to ensure compliance.

Compliance and Enforcement Compliance and Enforcement BranchBranch

Divided into 4 sections:Divided into 4 sections:

Exploration and ConstructionExploration and ConstructionDrilling and CompletionsDrilling and CompletionsPipelines and FacilitiesPipelines and FacilitiesEnforcementEnforcement

Exploration and ConstructionExploration and Construction

Responsible for:Responsible for:Inspecting seismic activities for Inspecting seismic activities for compliance; compliance; Inspecting construction of well sites, Inspecting construction of well sites, pipeline rights of way, roads for pipeline rights of way, roads for compliance;compliance;Issuing certificates of restoration; andIssuing certificates of restoration; andEnhancing positive relations with Enhancing positive relations with landowners, aboriginal communities and landowners, aboriginal communities and industry. industry.

Drilling and CompletionsDrilling and Completions

Responsible for:Responsible for:

Inspecting drilling and service rigs Inspecting drilling and service rigs for compliance; andfor compliance; andInvestigating drill and service rig Investigating drill and service rig operations in the event of operations in the event of accidents, fires, or the accidents, fires, or the uncontrolled release of oil and gas uncontrolled release of oil and gas (kicks and blowouts).(kicks and blowouts).

Pipelines and FacilitiesPipelines and FacilitiesResponsible for:Responsible for:

Inspecting pipelines and facilities Inspecting pipelines and facilities for compliance;for compliance;Investigating incidences related to Investigating incidences related to a pipeline or facility;a pipeline or facility;Processing applications related to Processing applications related to the construction, modification or the construction, modification or repair of a pipeline or associated repair of a pipeline or associated facility; facility; Evaluating and approving Evaluating and approving emergency preparedness plans; emergency preparedness plans; and and

EnforcementEnforcementResponsible for:Responsible for:

Conducting nonConducting non--compliance compliance investigations related to oil and gas investigations related to oil and gas activities.activities.

Ministry of Water, Land & Air Protection

COALBED GASCOALBED GASPRODUCED WATERPRODUCED WATER

Definition:Definition: Water pumped from coal aquifers Water pumped from coal aquifers to reduce hydrostatic pressure and release to reduce hydrostatic pressure and release gas (methane).gas (methane).

Composition:Composition: Mainly sodium bicarbonate and Mainly sodium bicarbonate and chloride (baking soda and table salt) from gas chloride (baking soda and table salt) from gas producing aquifers.producing aquifers.


How Much Water?How Much Water?U.S.U.S.

Maximum: 46 m3/d (10,000 IGPD) per well in Powder River Maximum: 46 m3/d (10,000 IGPD) per well in Powder River Basin.Basin.Minimum: 2.9 m3/d (638 IGPD) per well in San Juan.Minimum: 2.9 m3/d (638 IGPD) per well in San Juan.Average: 22 m3/d (4864 IGPD) per well.Average: 22 m3/d (4864 IGPD) per well.

Raton Basin, Co:Raton Basin, Co:Wells produce 27 m3/d (6000 IGPD) for 2 years then drop Wells produce 27 m3/d (6000 IGPD) for 2 years then drop to 6 m3/d (1300 IGPD).to 6 m3/d (1300 IGPD).Started in 1995, now 1000 wells Started in 1995, now 1000 wells –– total water production in total water production in 2003 estimated at 10,000 m3/d (2.2 million IGPD).2003 estimated at 10,000 m3/d (2.2 million IGPD).

Alberta:Alberta:Horseshoe Canyon coals Horseshoe Canyon coals –– no waterno water


Disposal OptionsDisposal Options

DeepDeep--well Injection: Must find a permeable well Injection: Must find a permeable formation deeper than coal target (>600 m), formation deeper than coal target (>600 m), onon--site or offsite or off--site (truck water).site (truck water).

Discharge to streams or shallow aquifers Discharge to streams or shallow aquifers under authority of CBG Produced Water under authority of CBG Produced Water Code of Practice.Code of Practice.

Beneficial Use: industrial water supply, Beneficial Use: industrial water supply, irrigation, stream flow augmentation.irrigation, stream flow augmentation.


Code of Practice for Discharge of Code of Practice for Discharge of Produced Water from CBG OperationsProduced Water from CBG Operations

Regulation under new Environmental Regulation under new Environmental Management Act (formerly Waste Management Act (formerly Waste Management Act).Management Act).

Replaces individual permits.Replaces individual permits.

Developed by Ministry of Water, Land and Developed by Ministry of Water, Land and Air Protection.Air Protection.

Enforced by Oil and Gas Commission.Enforced by Oil and Gas Commission.


Produced Water Code of Produced Water Code of PracticePractice

Key RequirementsKey Requirements

Currently only allows discharge to streams and Currently only allows discharge to streams and shallow aquifers.shallow aquifers.Applies to final discharge, may ‘treat to meet’.Applies to final discharge, may ‘treat to meet’.Based on salinity (TDS) and toxicity to aquatic life.Based on salinity (TDS) and toxicity to aquatic life.Perennial steams: 4000 mg/L maximum with a Perennial steams: 4000 mg/L maximum with a minimum of 10:1 dilution for total discharge.minimum of 10:1 dilution for total discharge.Seasonal streams: 2000 mg/L maximum + limits for Seasonal streams: 2000 mg/L maximum + limits for chloride and boron (to protect vegetation).chloride and boron (to protect vegetation).Shallow aquifers: 2 X the salinity of the aquifer.Shallow aquifers: 2 X the salinity of the aquifer.


Salinity PrimerSalinity PrimerTDS (mg/L)TDS (mg/L)

Powder River Basin, Powder River Basin, WoWo 270 270 –– 4,0004,000

San Juan, Co/NMSan Juan, Co/NM 410 410 –– 170, 000170, 000

SeawaterSeawater 35,00035,000

1 tbsp salt in 1 L freshwater1 tbsp salt in 1 L freshwater 12,00012,000

Canadian Drinking Water GuidelineCanadian Drinking Water Guideline 500500

SimilkameenSimilkameen RiverRiver spring freshetspring freshet 4040base flowbase flow 130130


Produced Water Code of Produced Water Code of PracticePractice

Other RequirementsOther Requirements

Baseline monitoringBaseline monitoringCompliance monitoringCompliance monitoringProduced water characterizationProduced water characterizationSpecial assessments: proximity to drinking Special assessments: proximity to drinking water supplies or irrigation use.water supplies or irrigation use.WebWeb--based reportingbased reporting


Coal Bed GasEnvironmental Resource Information Project


Objectives:Objectives:Contribute to responsible CBG developmentContribute to responsible CBG development

Increase knowledge and availability of existing Increase knowledge and availability of existing environmental baseline data in coalfields with environmental baseline data in coalfields with CBG potentialCBG potential

Engage community members, First Nations and Engage community members, First Nations and industry in the review and use of ERI databaseindustry in the review and use of ERI database




Key Deliverables:Key Deliverables:

Comprehensive webComprehensive web--based reference source based reference source for publicly available maps, reports and datafor publicly available maps, reports and dataInitial coalfields: Initial coalfields: CrowsnestCrowsnest, , SimilkameenSimilkameen, , Hat Creek, Hat Creek, ComoxComox--Nanaimo, Hudson’s HopeNanaimo, Hudson’s HopeSurface and groundwater sampling and Surface and groundwater sampling and studiesstudiesTechnical workshops, community outreachTechnical workshops, community outreachPrinceton coalfield “Pilot”Princeton coalfield “Pilot”




Princeton Coalfield “Pilot”Princeton Coalfield “Pilot”

Purpose: Purpose: A focused effort of data capture and A focused effort of data capture and community outreachcommunity outreach

Comprehensive data search / data gapsComprehensive data search / data gaps•• 102 data references to date102 data references to date

Enhanced water quality and hydroEnhanced water quality and hydro--geology geology databasedatabase

•• Water quality sampling; aquifer researchWater quality sampling; aquifer research

Upper Upper SimilkameenSimilkameen Band collaborationBand collaboration•• Field and technical participationField and technical participation

CommunityCommunity--based workshop(s) / outreachbased workshop(s) / outreach




Project Team:Project Team:

Rolf Schmitt, P.GeoRolf Schmitt, P.Geo Project ManagerProject ManagerLes McDonald, R.P. BioLes McDonald, R.P. Bio Water SpecialistWater SpecialistPeter RobbPeter Robb First Nations AdvisorFirst Nations AdvisorDr. Vic Dr. Vic LevsonLevson, P.Geo, P.Geo Sr. Science AdvisorSr. Science AdvisorBen KerrBen Kerr GIS SpecialistGIS Specialist

http://www.http://www.emem..govgov..bcbc.ca/.ca/subwebssubwebs//oilandgasoilandgas/resource//resource/cbgcbg//cbgcbg..htmhtm


Thank youThank you

www.www.emem..govgov..bcbc.ca.cawww.www.ogcogc..govgov..bcbc.ca.ca

cbginfocbginfo@[email protected]

http://www.em.gov.bc.ca/

http://www.em.gov.bc.ca/

http://www.ogc.gov.bc.ca/


CBG TeamCBG TeamMary Coward, Project Manager, (250) 356Mary Coward, Project Manager, (250) 356--98279827Rolf Schmitt, Environmental Project, (250) 356Rolf Schmitt, Environmental Project, (250) 356--98229822Barry Ryan, Barry Ryan, CoalbedCoalbed Gas Specialist,Gas Specialist, (250) 952(250) 952--04180418Les McDonald, Water Specialist, (250) 489Les McDonald, Water Specialist, (250) 489--85178517Peter Robb, Aboriginal Relations, (250) 952Peter Robb, Aboriginal Relations, (250) 952--05270527Shelley Guthrie, Aboriginal Relations, (250) 952Shelley Guthrie, Aboriginal Relations, (250) 952--05290529

Devin Scheck, CBG Manager, OGC (250)261Devin Scheck, CBG Manager, OGC (250)261--57995799Bruce Bruce CazesCazes, C&E, OGC (250) 261, C&E, OGC (250) 261--57595759Kelly Cook, Landowner Liaison, OGC (250) 261Kelly Cook, Landowner Liaison, OGC (250) 261--57535753Corey Corey JonssonJonsson, Stakeholder Relations, (250) 261, Stakeholder Relations, (250) 261--57895789

coalbed gas in british columbia - llbc.leg.bc.ca2003. pre-tenure open house . nov 2003 meetings with...

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