Coalbed methane (CBM) is the natural gas found in most coal deposits. CBM is created during coalification, the process by which plant material is converted into coal over millions of years. Under most circumstances, CBM consists of pure methane, though it may also contain minor amounts of carbon dioxide and nitrogen. Methane is contained primarily within the coal seam where it is adsorbed (attached) to the coal. Pressure from the overlying rock and the water within the coal cleats (fractures) keeps the methane adsorbed onto the coal.

In British Columbia, the Oil and Gas Commission regulates all oil and gas exploration, including that undertaken for CBM.* This government agency works closely with other agencies, such as the Ministry of Water, Land and Air Protection to ensure that oil and gas activity is conducted responsibly.

The provincial Workers' Compensation Board sets and enforces standards for worker health and safety at all oil and gas sites and facilities. CBM companies are required to abide by stringent regulations developed for conventional oil and gas production.

*In some cases, exploratory coal drilling -- under the Mines Act -- may be of value to CBM exploration. However, any advanced CBM exploration or production must be authorized by the OGC.

People often wonder about two aspects of CBM -- its possible effects on air quality and whether the water produced during its development is suitable for use.

In terms of air quality, gas flaring -- burning the gas to dispose of it -- is minimal and limited to short-term testing periods in new areas to prove commercial viability. Also, because coalbed methane is a pure or "sweet" gas, it usually requires little processing before entering the pipeline that takes it your home. This means that emissions can be significantly lower than those produced during the processing of conventional oil and gas.

Although it varies in quality, CBM-produced water is simply the water that occurs naturally within the coal-bearing formations. Water quality ranges from potable to saline.

At present, there is insufficient data for most B.C. coalfields on either water quality or quantity, but that data will be collected and, based on test results, the Oil and Gas Commission will determine a suitable usage or disposal method for each project.

In situations where CBM-produced water is not suited for commercial or domestic use, it may be treated, re-injected into subsurface formations -- deep below potential groundwater aquifers -- or allowed to percolate back into the soil. The Oil and Gas Commission will evaluate both water quality and disposal as part of the CBM application process.

Every application to re-inject water for disposal is stringently reviewed by the Oil and Gas Commission. Companies must isolate the subsurface disposal areas from potential groundwater zones and prove that these formations will contain the anticipated volumes of reinjected water. To protect drinking water from possible cross-contamination, all disposal wells are lined with steel casing that is cemented into the well bore.

Experience in the United States has shown that CBM-produced water can be put to a number of beneficial uses. Under certain circumstances it has been used as supplemental water for livestock and range animals as well as to support recreation, fishing or other habitats.

While some of these innovative uses may be appropriate for CBM-produced water in B.C., the method of water disposal will be decided on a case-by-case basis, after the specifics of a given site or CBM well have been analyzed.

Provincial policy requires public consultation as part of the CBM application and approval process. Concerns about potential impacts on recreational or other activities can be addressed as part of that process. For example, CBM facilities -- which are quite small -- may be fenced to protect wildlife. Operations may also be restricted to certain times of the year to mitigate impacts. After use, the site is reclaimed.

Unlike conventional natural gas which, typically, must be treated before it enters the pipeline, CBM is considered a "sweet gas," and is generally of pipeline quality. This means there is no hydrogen sulphide (sour gas), which often smells and can be hazardous if released into the air. Sweet natural gas is odourless. The smell commonly associated with the natural gas used in households comes from an additive provided as a safety measure.

Coalbed Methane is a non-toxic, natural gas, similar to the gas already used to heat our homes, cook our food and generate our electricity. Caution should be exercised around CBM, just as around any flammable substance.

However, safety is a top priority of the provincial government as well as for the companies and individuals working in the CBM industry. In British Columbia, the Oil and Gas Commission and the Workers’ Compensation Board hold regulatory authority over the industry’s safety standards.

Before being granted permission to operate, companies are required by the Pipeline Act and Pipeline Regulation to have an emergency response plan. This plan must be approved by provincial authorities. With an ERP and the required safety devices in place, emergency situations can be detected readily.

CBM development can only proceed in areas where significant coal deposits exist. It will not be allowed in designated parks or other protected areas.

In British Columbia, CBM belongs to whomever holds the natural gas rights. With the exception of areas included in early land grants, the Province owns the majority of CBM rights in B.C. The Province may lease its CBM rights to gas companies, through an auction process. Companies must negotiate with private landowners for surface access to explore and produce provincially owned CBM.

Companies interested in exploring for provincially owned CBM will petition the Ministry of Energy and Mines to include specific CBM parcels into a regularly scheduled auction of petroleum and natural gas rights. Once the Ministry of Energy and Mines determines that rights to a specific parcel should be made available at auction, information about the parcel is referred to provincial agencies, local governments and First Nations for comment. Comments received during this referral process can help the Province determine whether special restrictions should be applied to the parcel to address concerns.

Even if a company's bid for CBM rights is accepted, exploration and development can take place only after the Oil and Gas Commission has reviewed a site-specific project application. The Oil and Gas Commission may refuse to approve a CBM project or it may impose strict conditions to address concerns associated with a specific application.

The location of any CBM development -- including those cases where CBM rights are privately owned -- will be subject to the Petroleum and Natural Gas Act and its associated regulations. They provide rules regarding setbacks from watercourses, structures and other surface features.

Provincial policy requires public consultation as part of the site-specific CBM drilling application and approval process. In addition, Ministry of Energy and Mines staff will be visiting several communities to provide information about coalbed methane during the summer and fall of 2001. These visits will be advertised locally in advance.