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Present and Future of Coalbed Gas in British Columbia

Explore the potential, investment opportunities, and responsible development of coalbed gas in British Columbia, from early mining techniques to modern high-tech industry advancements. Learn about the state's CBG reserves, industry activity, and government strategies.

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Present and Future of Coalbed Gas in British Columbia

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  1. Present and Future of Coalbed Gas in British Columbia Ross Curtis Assistant Deputy Minister B.C. Ministry of Energy and Mines Conference Board of Canada Calgary, Alberta February 18, 2004

  2. Outline Coalbed gas in British Columbia • Potential • Attracting Investment • Opportunities • Responsible Development

  3. From early days of pick and shovel …

  4. To today’s high-tech, efficient coal industry

  5. CBG – a new opportunity to use BC’s coal resource

  6. BC Coalbed Gas Potential • 90 Tcf potential resource (Reserves ???) • High potential closeto markets and infrastructure Klappan & Groundhog 8 Tcf Peace River 60 Tcf Hat Creek 0.5 Tcf East Kootenay 19 Tcf Comox 0.8 Tcf Princeton 0.08 Tcf

  7. British ColumbiaAttracting Industry

  8. 2002/3 2003/4 (Forecast) P&NG tenure $332 mil $690 mil (sales, fees, rentals) Royalties $1.174 bil $1.387 bil Wells drilled 821 1144 Oil and Gas in BC

  9. Government Goals Goal • $20 billion investment 2002-2008 Strategy • develop unconventional resources Coalbed gas - emerging opportunity

  10. CBG Investment Strategy • Competitive royalties and costs • Crown gas rights • Industry support • Effective Regulation • Community involvement • First Nations engagement

  11. Competitive Costs CBG Royalty Regime • Allows for infrastructure costs • $50,000 Royalty Credit Regulatory Streamlining • Regulations reduced 1/3 by 2005 • Results-based regulation coming

  12. Crown P&NG Rights • Coalbed Gas Act • Freehold coal policy • Mineral rights clarification • Request for Proposals for innovative projects

  13. Industry Support Information and problem solving • Geoscience • Tenure • Regulation • Opportunities “The Map Place”

  14. Effective Regulation CBG Industry Guidelines 3-phase development plan • Evaluation Plan: 1 well to pilot stage • Development Plan: 20-40 wells • Production Plan: commercial production CBG Water Code of Practice www.ogc.ca

  15. Community Involvement Providing Information • CBG development • Government roles • Regulation • Managing issues

  16. First Nations Engagement • Key communities in resource development • Interested in CBG opportunities • Government actively engaged

  17. Managing Development • Regulatory body • “one window” • Operational issues • Implementation and enforcement • Stakeholder relations • First Nations engagement MEM OGC • Policy • P&NG and coal tenure • Resource development • Geological expertise • Community information • First Nations engagement

  18. CBG Opportunities in British Columbia

  19. Activity in BC • Early stage exploration and evaluation • No commercial projects • Active rights acquisition • 43 test wells since 1999 • 11 Experimental Projects

  20. Plains Ft St John Hudson’s Hope Dawson Creek Tumble Ridge Foothills Northeast BC Resource – 60 Tcf Industry activity • Hudson’s Hope -P&NG rights leased, evaluation drilling 2002/3 • Other areas – evaluation

  21. Resource – 19 Tcf Industry Elk Valley project Crowsnest coalfield – industry interest Southeast BC Elk Valley Coalfield 7 Tcf British Columbia Alberta Elkford Crowsnest Coalfield 12 Tcf Sparwood Fernie

  22. Resource - .17 Tcf in Princeton/Tulameen, Merritt and .5 Tcf Hat Creek Industry Princeton - P&NG rights leased; seismic complete; expect pilot in 2004 Tulameen – P&NG rights leased 2004 South Central BC

  23. Vancouver Island Resource • 1.0 Tcf + Industry • Comox– some evaluation wells Tenure • Complex mineral rights • Freehold coal Suquash Coalfield Comox Coalfield Quinsam Mine Victoria Nanaimo Coalfield

  24. Northwest BC • Resource – 8 Tcf – anthracite coals • Need more geoscience to evaluate resources

  25. Other Unconventional Resources • Shale gas • Tight gas WCSB Bowser • Interior Basin Development Strategy • Geophysics • Tenure dispositions • Net profit assessment Nechako

  26. ResponsibleDevelopment

  27. Learning from the U.S.

  28. Mitigating Impacts • Water • Surface impact • Noise • Reclamation • Environmental Information

  29. Water Surface Disposal Beneficial Uses

  30. Surface Impact WELL

  31. Noise Housing over gas-fired pump Electric pump

  32. Reclamation

  33. Environmental Information NEW Environmental Resource Information Project In CBG basins: • Bring together existing data • Targeted new studies

  34. Summary Coalbed gas in British Columbia • Great opportunities • Government strategy • Established regulatory regime • Partnerships in responsible development

  35. CBG Team Mary Coward, Project Manager, (250) 356-9827 Barry Ryan, Coalbed Gas Specialist, (250) 952-0418 Rolf Schmitt, Environmental Project, (250) 356-9822 Vic Levson, CBG Water Code, (250) 952-0391 Colin Magee, Petroleum Titles,(250) 952-9335 Cathy Mou, Royalty and Policy, (250) 952-0133 Devin Scheck, CBG Manager, OGC (250)261-5799 Corey Jonsson, Stakeholder Relations (250) 261-5789

  36. Thank you www.em.gov.bc.ca www.ogc.gov.bc.ca

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