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Frequently Asked Questions
There are common questions asked about coalbed natural gas and its development. Many are answered below:

1. What is coalbed natural gas?
   Sometimes referred to as methane gas, it is a naturally occurring gas bound by water pressure in underground coal deposits. CBNG is a clean, non-greenhouse fossil fuel that will bring many environmental, as well as economical benefits to Wyoming, Montana and the nation.
2. Where is it found?
   Coalbed natural gas is found all over the United States and Canada. Our website focuses on the Powder River Basin of northeast Wyoming and southeast Montana.
3. How large is the coalbed natural gas deposit in the Powder River Basin?
   The estimates for total recoverable gas for the basin range from 37-43 trillion cubic feet (tcf). Current estimates show that about half the basin has potential for development.
4. What is the process for extracting the natural gas?
   Wells are drilled into the coal deposits. As the water is released through the well, water pressure is decreased, which releases the natural gas. The gas migrates to the surface within the well bore where it is captured and piped to a compression station.
5. How is the gas distributed?
   From the compression station, the gas is transported by a pipeline to major gas transmission pipelines and distributed throughout the United States.
6. Do production wells and compressor stations negatively impact air quality?
   The wells and compressor stations do not emit any volatile organic compounds to the atmosphere.
7. How is the water produced by this process utilized?
   Often, landowners use the produced water for agricultural applications including stock water for livestock. Water management plans are created by the operator to meet each landowner's needs. Plans could include one or more of the following: stock ponds, wetlands, wildlife ponds and irrigation.
8. What is the key environmental issue related to coalbed natural gas development?
   Discharge of produced water can be an environmental issue associated with development. Most produced water meets federal and state clean water and drinking water standards. If the water is to be used for irrigation on a heavy clay soil then the water or soil would need to be treated to make up for any calcium deficiencies which occur in the water.
9. Will domestic water wells be negatively impacted by CBNG development?
   Typically, CBNG wells are drilled at much deeper depths and do not impact shallow aquifers utilized by domestic wells. Impacts to domestic water wells are rare. However, by law and industry practice, producers provide alternative domestic water sources if wells are impacted by production.
10. What are surface owner agreements?
    Surface owner agreements are negotiated between the surface owner and the mineral lessee and describe how the mineral lessee will enter the surface, develop and produce coalbed natural gas. The surface owner agreement may include, but is not limited to the following:
    · Where facilities will be located
    · Where discharge points will be located and how the produced water will be managed within the regulatory guidelines
    · Where roads and pipelines will be located
    · Monetary compensation paid for damages to the surface
    · Mitigation for possible off-site and off-lease interruptions of current agricultural or other uses
    · Surface restoration including re-seeding of surface
    · Noxious weed control
11. Will de-pressurizing the coalbed seam which releases the water cause underground fires?
    During the production phase of CBNG activity, conditions necessary to foster spontaneous combustion of coal are not present. CBNG wells leave no underground voids susceptible to spontaneous coal ignition. In addition, oxygen is required for combustion and all pipelines have oxygen sensors that will shut pipelines if any oxygen is detected.
12. What is the current state of development in Wyoming and Montana?
    The first successful CBNG wells were drilled in Wyoming in 1987. In Montana, development began in 1997 but ceased soon afterward pending completion of an Environmental Impact Statement. Production began again in late 2003.
    
    Through June 1, 2007 there are 17,219 producing CBNG wells and 7,093 shut-in CBNG wells for a total of 24,312 wells just in the Powder River Basin. The current cumulative gas production is 2,474,278,711 MCF or 2.47 Trillion Cubic Feet (TCF).
    
13. What is the Coalbed Natural Gas Alliance?
    The Alliance's mission is to inform, educate and communicate accurate information about coalbed natural gas development within the Powder River CBNG play in Montana and Wyoming. Environmental stewardship is our top priority. As operators, producers, ranchers, farmers and citizens of Montana and Wyoming, we all seek to produce or have the CBNG resources produced in the most environmentally friendly way possible by adhering to the rules and regulations; and, in some cases, doing more than what is required by established laws and regulations. The Alliance firmly believes that CBNG development naturally coexists with the environment it inhabits, including farming, ranching and wildlife habitat.