CBM hearings begin in Alberta

Petroleum News

A series of public hearings being held by the government of Alberta are expected to allay fears about coalbed methane development and help Alberta develop policies on coalbed methane exploration and development.

The first forums were held March 30, 31 and April 1 in the Alberta communities of Rocky Mountain House, Wetaskiwin and Stettler, respectively; the rest are scheduled for Barrhead on April 6, Strathmore on April 7, Drayton Valley on April 8 and Pincher Creek on April 15.

The effort is part of a review of coalbed methane initiated in October 2002 to ensure regulations achieve a balance between economic benefits while protecting land, air and water resources. Energy Minister Murray Smith, whose office is in charge of the forums, expects final recommendations from a multi-stakeholder advisory committee in November, by which time more than 1,000 coalbed methane wells will have been drilled and production could be in the range of 60 million cubic feet per day.

Whatever recommendations emerge, the government insists they must be consistent with its existing policy that coalbed methane continues to be treated as natural gas for regulatory purposes. So far about 800 coalbed methane wells have been drilled in Alberta and about 200 are producing 25 million cubic feet per day. The province is estimated to contain 500 trillion cubic feet of gas — almost five times the amount of natural gas produced in Alberta to date.

EnCana, targeting 200 million cubic feet per day of coalbed methane production within five years, drilled about 200 wells last year and plans another 300 this year.