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Development of the coal bed methane industry in Canada
Petition: No. 103
Issue(s): Biological diversity, governance, natural resources, and water
Petitioner(s): Eric Kennedy
Date Received: 20 February 2004
Status: Completed
Summary: This petition concerns the potential development of the coal bed methane industry in the Maritimes and Western Canada. The petitioner presents a number of environmental problems that could potentially result from the growth of this industry, including the contamination of wells, habitat loss from refining methods, and construction of roads to the extraction sites. The petitioner is requesting that the federal government write guidelines and regulations for the industrial development of coal bed methane to ensure nation-wide environmental standards.
Federal Departments Responsible for Reply: Environment Canada, Natural Resources Canada, Western Economic Diversification Canada
Petition
400 Clairbrook Crescent
Waterloo, Ontario
N2L 5V7
Office of the Auditor General of Canada
and the Commissioner of the Environment and Sustainable Development
Attention: Petitions
240 Sparks Street
Ottawa, Ontario
K1A 0G6
February 16, 2004
Dear Sir or Madam,
My name is Eric Kennedy. I am 13 years old and attend grade 8 classes in the Congregated Classroom for Gifted Learners at Centennial Public School in Waterloo, Ontario. I am in the process of completing a project for school on the impact of Coal Bed Methane. As part of this project, I am submitting this petition for four reasons. First, I would like to be informed of the Canadian Government's position on the development of this industry and energy source. Second, I request a list of the Coal Bed Methane wells in Canada. Third, I would like to present the problems and dangers with development of Coal Bed Methane. Fourth, I request that the Canadian Government write guidelines and regulations for the development of Coal Bed Methane, and that the public, myself and experts be consulted during the writing process.
Coal Bed Methane (CBM) are the gasses, mainly methane, formed in coal seams. The methane is currently added to natural gas in some areas of North America to improve the power provided. Coal Bed Methane is formed through the biochemical and physical processes during the natural decay of plant matter into coal. The bacterial reseparation causes gasses such as methane, butane, propane, ethane, carbon dioxide, and nitrogen to form. Coal Bed Methane is most commonly found in areas with formerly high amounts of plant matter. A commonly used example of this is Powder River Basin, Wyoming (US). During prehistoric times there was an abundance of plant matter in the area. This matter has now decayed and has formed coal and CBM.
In order for CBM to be refined into a power source, it needs to be flushed to the surface. Running water through the open CBM well separates the gasses from the coal. During this process, the water becomes highly sodic (high in sodium). In many CBM developments, the water is disposed of by either flooding a piece of land or by misting it into the air. If the water is pumped onto the ground, it destroys the ecosystem by killing off plant life, and the animal life that drinks the water. If it is misted into the air, it kills off the plant life in a much larger area. Also, the water has a high amount of gasses left in it, so many times people can go to the discharge pipe of the contaminated water and light it on fire. In some cases, the tap water from wells can be contaminated, and it can also be lit on fire.
Another issue with the extraction of CBM is the extraction itself. The developers of CBM can barge onto the land to extract the methane from under most property and pay the land owners nothing. This occurs because most property owners do not own the mineral rights for their land. The developers claim that the pumping stations are not obvious, but not only are the pumping stations present, roads have to be created to allow the builders to get to the pumps. The water discharge facilities need to be created and a collection facility is built for every few wells. The impact, both environmentally and visually is immense, as well as the impact to the land owners is immense.
Coal Bed Methane is being considered for use mainly in Western Canada and the Maritimes. This technology, which is used on a large scale in the United States, has been the cause of many complaints from both farmers and residents of the areas in which it was developed. I have been conducting research on this topic and through my studies, I have determined that, in my view, Coal Bed Methane can not be implemented sustainably in Canada.
I also have great concern regarding the dangers in unequal development. If an environmentally responsible company develops Coal Bed Methane at a higher price and on a slower time frame then a company that disregards the environment, the latter company will have an unfair economic advantage. I propose that guidelines be set in place, so that there is a nation-wide environmental standard for the development of CBM. If these guidelines are created by provincial governments, there will continue to be unfair business advantages, allowing companies in one province to make greater sales then in another.
I am asking that this petition be forwarded to the following: Environment Canada, Natural Resources Canada, Industry Canada, Western Economic Diversification Canada and the Prime Minister. I request that the Prime Minister reply with a statement of the government's position on Coal Bed Methane and how he intends to regulate development of this industry.
I would like to thank you in advance for your quick and thoughtful reply.
Sincerely,
[Original signed by Eric Kennedy]
Eric Kennedy
Minister's Response: Environment Canada
May 21, 2004
Mr. Eric Kennedy
400 Clairbrook Crescent
Waterloo ON
N2L 5V7
Dear Mr. Kennedy:
I am writing to provide Environment Canada's response to your environmental Petition No. 103, to the Commissioner of the Environment and Sustainable Development, regarding coal bed methane. Your petition was received in the Department on March 5, 2004.
My department's response to those issues that pertain to my mandate as Minister of the Environment is enclosed. I am advised that my colleagues, the ministers of Natural Resources Canada and Western Economic Diversification Canada, will respond separately to the questions relating to their department.
I appreciate your interest in this matter, and hope the information provided is helpful.
Yours sincerely,
[Original signed by David Anderson, Minister of the Environment]
David Anderson, P.C., M.P.
Environment Canada's Response to
Environmental Petition No. 103, under section 22 of the Auditor General Act
Petitioner: Mr Eric Kennedy
Development of coal bed methane in Canada
Government of Canada's Position
The Government of Canada supports the responsible development of unconventional natural gas resources, as our conventional sources diminish.
List of Coal Bed Methane Wells
This information is not available from the federal government. Accordingly, you may wish to request the information from the Alberta Energy and Utilities Board (www.eub.gov.ab.ca/bbs/default.htm), the British Columbia Ministry of Energy and Mines (www.gov.bc.ca/em), and the British Columbia Oil and Gas Commission (www.ogc.gov.bc.ca).
Concerns Regarding Development of Coal Bed Methane
Based on the United States experience, stakeholders in Canada are very aware of the environmental challenges that the development of coal bed methane will present, and lessons have been learned from the U.S. experience. A principal concern is the water disposal associated with the dewatering of coal seams, and the impact of this disposal on the land and land owners. Provincial governments, environmental non-governmental organizations, industry, and the Government of Canada are taking steps to minimize these impacts, and there is currently a full public consultation process under way in Alberta to address the development of coal bed methane. More information on this process is available through the Alberta Department of Energy (www.energy.gov.ab.ca/com/default.htm).
Regulations and Guidelines for Development of Coal Bed Methane
The production and development of natural gas resources are under provincial jurisdiction. As such, regulations and guidelines related to the production of coal bed methane will be developed at the provincial level. If you would like to be consulted on the development of guidelines and regulatory instruments, please contact provincial authorities.
Some of the impacts described in your petition are generic to conventional oil and gas production, and are addressed in provincial regulations. The Alberta Energy and Utilities Board and the British Columbia Oil and Gas Commission can be contacted for further information.
For more information on the development of coal bed methane, please contact the Canadian Society for Unconventional Gas, through www.csug.ca.
Minister's Response: Natural Resources Canada
June 29, 2004
Mr. Eric Kennedy
400 Clairbrook Crescent
Waterloo, Ontario
N2L 5V7
Dear Mr. Kennedy:
I am writing in response to your letter of February 16, 2004 to the Commissioner of the Environment and Sustainable Development, in which you asked questions about and conveyed your views on the extraction of coal-bed methane (CBM) and on the Government of Canada policy on this energy source.
In response to your first question, the Government of Canada supports environmentally responsible energy development that will create wealth and jobs without compromising the environment or our future. We believe that production of natural gas from CBM - which is essentially natural gas from coal - can be developed in this way. For more information you may wish to refer to NRCan's Sustainable Development Web page at http://www.nrcan.gc.ca/sd-dd/sect/ener_e.html.
In regard to your request for a list of CBM wells in Canada, statistics on hydrocarbon wells in the provinces are kept by provincial governments. To date, only in Alberta have a significant number of CBM wells been drilled. At present, however, the Alberta government treats CBM wells as regular gas wells. Therefore they are not reported as a separate item on its Web site. You may wish to pursue this matter with the Alberta Energy and Utilities Board. Its Web site is: http://www.eub.gov.ab.ca/bbs/default.htm
General information from petroleum newsletters, conference reports, etc. provides some insight into the information you seek. It would appear that of the nearly 10,000 gas wells drilled in Alberta in 2003, about 400 were drilled for CBM. Of them, about 100 are producing gas. It is expected the number of wells will rise to about 1,000 in 2004 and will continue to increase over the following years. The producing wells are mostly located in east-central Alberta, and they drill into a rock unit called the Horseshoe Canyon Formation.
In response to your concerns about coal-bed methane production and regulation, I would like to offer the following comments.
- Under Canada's Constitution, oil, natural gas, coal, coal-bed methane and other minerals underlying land in a province belong to that province, not to the federal government. Provinces are therefore responsible for the bulk of regulation relating to natural gas or coal-bed methane development. There are already myriad regulations (provincial and federal) to protect the environment when natural gas or CBM projects are built. For example, in Alberta there are extensive Alberta drilling, production and operational rules and regulations for natural gas or coal-bed methane. A description of these is available on the Alberta Energy Web site, at http://www.energy.gov.ab.ca/com/Gas/NGC-CBM/ Coalbedmethane_in_coal.htm#framework.
- Methane is adsorbed onto coal. It can leak off slowly along natural fractures if one drills into the coal. Therefore, a CBM well is known as a low-productivity gas well, and a large number of wells are required to produce gas in economic quantities. If water is present within the coals, it is usually necessary to pump the water out to allow the gas to flow. Some of this water is saline, and some of it is potable. Provincial regulations require that the water be either returned to the subsurface or treated. Geologically, the rock units in Canada that now produce CBM are dry and do not have a water problem, in contrast to those in the U.S.A.
- You may be interested to know that it is possible to force pressurized carbon dioxide into the coal and at the same time push the methane out. As coal can hold two times more carbon dioxide than methane, use of this method would lead to a large net reduction in greenhouse gas. The Government of Alberta's Research Council is experimenting with doing this. It has a Web site at http://www.arc.ab.ca/energy/Coalbed_pilot.asp.
Finally, you may wish to review an informative publication put together by the Canadian Association of Petroleum Producers. That document, Responsible coalbed methane development in Canada, is available at http://www.csug.ca.
Thank you for conveying your interests and concerns to the Government of Canada. I hope this information will enable you to complete your school project on the impact of CBM.
Yours sincerely,
[Original signed by George Anderson, Deputy Minister, Natural Resources Canada]
George Anderson
Minister's Response: Western Economic Diversification Canada
June 30, 2004
Mr. Eric Kennedy
400 Clairbrook Crescent
Waterloo, Ontario
N2L 5V7
Dear Mr. Kennedy:
Thank you for your letter concerning the development of coal bed methane resources in Canada and the environmental impacts associated with this emerging industry (Environmental Petition no. 103).
Western Economic Diversification Canada (WD) was established in 1987 with a mandate to promote the development and diversification of the western Canadian economy. WD works closely with other federal departments, western provincial governments and industry to support the development of new technologies that have the potential to produce social, environmental and economic benefits for the West, and Canada as a whole.
Although estimates vary, it is clear that the majority of Canada's coal bed methane is located in Alberta. Consequently, new processes and technologies to extract coal bed methane from deep coal are being studied carefully in Alberta to determine if development is both economically and environmentally feasible. In keeping with its mandate to support innovation in the West, WD is supportive of the development of technologies that permit the sustainable development of natural resources. In addition, the Government of Alberta has begun a public consultation process to address concerns about the impacts of coal bed methane development on communities.
Of particular importance to the sustainable development of Western Canada's economy will be the development of new technologies for the geological storage of carbon dioxide. In 1998, WD and the Alberta Research Council jointly funded, together with industry partners, a study to explore the feasibility of injecting carbon dioxide into deep coal beds as both a means of sequestering greenhouse gases and displacing naturally occurring methane. The ultimate aim is to develop new technologies that will result in reduced greenhouse gas emissions and allow for the recovery of clean burning methane for commercial use. The Alberta Research Council is continuing this work and has recently completed field tests that indicate it is technically feasible.
Thank you for your interest in WD's role in new technologies that permit the sustainable development of natural resources. The remaining issues addressed in your petition are better addressed by the other departments petitioned.
I appreciate your taking the time to express your views.
Sincerely,
[Original signed by Dr. Rey D. Pagtakhan, Minister of Western Economic Diversification]
The Hon. Dr. Rey D. Pagtakhan, P.C, M.P.
Minister's Response: Environment Canada
May 21, 2004
Mr. Eric Kennedy
400 Clairbrook Crescent
Waterloo ON
N2L 5V7
Dear Mr. Kennedy:
I am writing to provide Environment Canada's response to your environmental Petition No. 103, to the Commissioner of the Environment and Sustainable Development, regarding coal bed methane. Your petition was received in the Department on March 5, 2004.
My department's response to those issues that pertain to my mandate as Minister of the Environment is enclosed. I am advised that my colleagues, the ministers of Natural Resources Canada and Western Economic Diversification Canada, will respond separately to the questions relating to their department.
I appreciate your interest in this matter, and hope the information provided is helpful.
Yours sincerely,
[Original signed by David Anderson, Minister of the Environment]
David Anderson, P.C., M.P.
Environment Canada's Response to
Environmental Petition No. 103, under section 22 of the Auditor General Act
Petitioner: Mr Eric Kennedy
Development of coal bed methane in Canada
Government of Canada's Position
The Government of Canada supports the responsible development of unconventional natural gas resources, as our conventional sources diminish.
List of Coal Bed Methane Wells
This information is not available from the federal government. Accordingly, you may wish to request the information from the Alberta Energy and Utilities Board (www.eub.gov.ab.ca/bbs/default.htm), the British Columbia Ministry of Energy and Mines (www.gov.bc.ca/em), and the British Columbia Oil and Gas Commission (www.ogc.gov.bc.ca).
Concerns Regarding Development of Coal Bed Methane
Based on the United States experience, stakeholders in Canada are very aware of the environmental challenges that the development of coal bed methane will present, and lessons have been learned from the U.S. experience. A principal concern is the water disposal associated with the dewatering of coal seams, and the impact of this disposal on the land and land owners. Provincial governments, environmental non-governmental organizations, industry, and the Government of Canada are taking steps to minimize these impacts, and there is currently a full public consultation process under way in Alberta to address the development of coal bed methane. More information on this process is available through the Alberta Department of Energy (www.energy.gov.ab.ca/com/default.htm).
Regulations and Guidelines for Development of Coal Bed Methane
The production and development of natural gas resources are under provincial jurisdiction. As such, regulations and guidelines related to the production of coal bed methane will be developed at the provincial level. If you would like to be consulted on the development of guidelines and regulatory instruments, please contact provincial authorities.
Some of the impacts described in your petition are generic to conventional oil and gas production, and are addressed in provincial regulations. The Alberta Energy and Utilities Board and the British Columbia Oil and Gas Commission can be contacted for further information.
For more information on the development of coal bed methane, please contact the Canadian Society for Unconventional Gas, through www.csug.ca.
Minister's Response: Natural Resources Canada
June 29, 2004
Mr. Eric Kennedy
400 Clairbrook Crescent
Waterloo, Ontario
N2L 5V7
Dear Mr. Kennedy:
I am writing in response to your letter of February 16, 2004 to the Commissioner of the Environment and Sustainable Development, in which you asked questions about and conveyed your views on the extraction of coal-bed methane (CBM) and on the Government of Canada policy on this energy source.
In response to your first question, the Government of Canada supports environmentally responsible energy development that will create wealth and jobs without compromising the environment or our future. We believe that production of natural gas from CBM - which is essentially natural gas from coal - can be developed in this way. For more information you may wish to refer to NRCan's Sustainable Development Web page at http://www.nrcan.gc.ca/sd-dd/sect/ener_e.html.
In regard to your request for a list of CBM wells in Canada, statistics on hydrocarbon wells in the provinces are kept by provincial governments. To date, only in Alberta have a significant number of CBM wells been drilled. At present, however, the Alberta government treats CBM wells as regular gas wells. Therefore they are not reported as a separate item on its Web site. You may wish to pursue this matter with the Alberta Energy and Utilities Board. Its Web site is: http://www.eub.gov.ab.ca/bbs/default.htm
General information from petroleum newsletters, conference reports, etc. provides some insight into the information you seek. It would appear that of the nearly 10,000 gas wells drilled in Alberta in 2003, about 400 were drilled for CBM. Of them, about 100 are producing gas. It is expected the number of wells will rise to about 1,000 in 2004 and will continue to increase over the following years. The producing wells are mostly located in east-central Alberta, and they drill into a rock unit called the Horseshoe Canyon Formation.
In response to your concerns about coal-bed methane production and regulation, I would like to offer the following comments.
- Under Canada's Constitution, oil, natural gas, coal, coal-bed methane and other minerals underlying land in a province belong to that province, not to the federal government. Provinces are therefore responsible for the bulk of regulation relating to natural gas or coal-bed methane development. There are already myriad regulations (provincial and federal) to protect the environment when natural gas or CBM projects are built. For example, in Alberta there are extensive Alberta drilling, production and operational rules and regulations for natural gas or coal-bed methane. A description of these is available on the Alberta Energy Web site, at http://www.energy.gov.ab.ca/com/Gas/NGC-CBM/ Coalbedmethane_in_coal.htm#framework.
- Methane is adsorbed onto coal. It can leak off slowly along natural fractures if one drills into the coal. Therefore, a CBM well is known as a low-productivity gas well, and a large number of wells are required to produce gas in economic quantities. If water is present within the coals, it is usually necessary to pump the water out to allow the gas to flow. Some of this water is saline, and some of it is potable. Provincial regulations require that the water be either returned to the subsurface or treated. Geologically, the rock units in Canada that now produce CBM are dry and do not have a water problem, in contrast to those in the U.S.A.
- You may be interested to know that it is possible to force pressurized carbon dioxide into the coal and at the same time push the methane out. As coal can hold two times more carbon dioxide than methane, use of this method would lead to a large net reduction in greenhouse gas. The Government of Alberta's Research Council is experimenting with doing this. It has a Web site at http://www.arc.ab.ca/energy/Coalbed_pilot.asp.
Finally, you may wish to review an informative publication put together by the Canadian Association of Petroleum Producers. That document, Responsible coalbed methane development in Canada, is available at http://www.csug.ca.
Thank you for conveying your interests and concerns to the Government of Canada. I hope this information will enable you to complete your school project on the impact of CBM.
Yours sincerely,
[Original signed by George Anderson, Deputy Minister, Natural Resources Canada]
George Anderson
Minister's Response: Western Economic Diversification Canada
June 30, 2004
Mr. Eric Kennedy
400 Clairbrook Crescent
Waterloo, Ontario
N2L 5V7
Dear Mr. Kennedy:
Thank you for your letter concerning the development of coal bed methane resources in Canada and the environmental impacts associated with this emerging industry (Environmental Petition no. 103).
Western Economic Diversification Canada (WD) was established in 1987 with a mandate to promote the development and diversification of the western Canadian economy. WD works closely with other federal departments, western provincial governments and industry to support the development of new technologies that have the potential to produce social, environmental and economic benefits for the West, and Canada as a whole.
Although estimates vary, it is clear that the majority of Canada's coal bed methane is located in Alberta. Consequently, new processes and technologies to extract coal bed methane from deep coal are being studied carefully in Alberta to determine if development is both economically and environmentally feasible. In keeping with its mandate to support innovation in the West, WD is supportive of the development of technologies that permit the sustainable development of natural resources. In addition, the Government of Alberta has begun a public consultation process to address concerns about the impacts of coal bed methane development on communities.
Of particular importance to the sustainable development of Western Canada's economy will be the development of new technologies for the geological storage of carbon dioxide. In 1998, WD and the Alberta Research Council jointly funded, together with industry partners, a study to explore the feasibility of injecting carbon dioxide into deep coal beds as both a means of sequestering greenhouse gases and displacing naturally occurring methane. The ultimate aim is to develop new technologies that will result in reduced greenhouse gas emissions and allow for the recovery of clean burning methane for commercial use. The Alberta Research Council is continuing this work and has recently completed field tests that indicate it is technically feasible.
Thank you for your interest in WD's role in new technologies that permit the sustainable development of natural resources. The remaining issues addressed in your petition are better addressed by the other departments petitioned.
I appreciate your taking the time to express your views.
Sincerely,
[Original signed by Dr. Rey D. Pagtakhan, Minister of Western Economic Diversification]
The Hon. Dr. Rey D. Pagtakhan, P.C, M.P.