Coalbed

Fort Worth-based independent XTO Energy Inc. is acquiring some coalbed methane (CBM) properties in the San Juan Basin of Colorado for $160 million, after entering into a definitive agreement with J. M. Huber Corp. of Edison, NJ.

Denver-based Evergreen Resources Inc. on Tuesday was awarded the lease rights on three tracts covering 14,908 acres of prospective coalbed methane (CBM) properties in Alaska’s Matanuska Valley. Evergreen was high bidder on the tracts at the 2001 Northern Cook Inlet Basin oil and gas lease sale in September, held by the Alaska Mental Health Land Office.

Western Gas Resources Inc. said Tuesday that its coalbed methane (CBM) gas production from the All Night Creek pilot project in the Big George area of the Powder River Basin began flowing into a sales line on Aug. 21. Fifty-three wells already have been drilled and connected, with 39 producing gas.

Pittsburgh, PA-based Consol Energy Inc., the second largest U.S. coal producer based on revenues, has entered into a deal to buy coalbed methane (CBM) gas production and pipeline gathering assets from Conoco Inc. to serve the expanding gas needs of power generators in the Pennsylvania, Virginia and West Virginia areas.

Evergreen Resources grabbed another 17,800 acres of coalbed methane properties, representing about 40 Bcf of proven reserves in the southern Colorado portion of the Raton Basin for $19.2 million from Shenandoah Operating Co. The purchase brings Evergreen’s total gross acreage position in the Raton to 265,000 acres.

PanCanadian Petroleum Ltd. and MGV Energy Inc., the Canadian subsidiary of Quicksilver Resources Inc., are formalizing their coalbed methane (CBM) joint venture by drilling their first pilot wells beginning this fall in the largest Canadian CBM project to date. So far, the companies have drilled 21 exploration wells and plan to drill another 29 more in a region of southern Alberta, focusing initially on a million-acre tract in the Palliser block.

Evergreen Resources grabbed another 17,800 acres of coalbed methane properties, representing about 40 Bcf of proven reserves in the southern Colorado portion of the Raton Basin for $19.2 million from Shenandoah Operating Co. The purchase brings Evergreen’s total gross acreage position in the Raton to 265,000 acres.

As hoped for by coalbed methane producers operating in the Powder River Basin, Wyoming and Montana regulators have reached a tentative agreement to prevent CBM production from polluting the rivers in the region. Under the tentative proposal announced last week, CBM producers would be allowed to dump discharge water on the ground over an 18-to-24-month period to determine if it actually pollutes the rivers.

As hoped for by coalbed methane producers operating in the Powder River Basin, Wyoming and Montana regulators have reached a tentative agreement to prevent CBM production from polluting the rivers in the region. Under the proposal reached this week, CBM producers would be allowed to dump discharge water on the ground over an 18-to-24-month period to determine if it actually pollutes the rivers.