Energy

STATE AUTHORIZES ALTERNATIVE FUEL PRODUCTION

COAL SEAM NATURAL GAS

Thursday, January 19, 2006

Louisiana Department of Natural Resources (DNR) Secretary Scott Angelle has recently announced the department’s approval for the extraction of an alternative fossil fuel, known as “coal seam natural gas” at three sites in Caldwell parish.

He said the department’s Office of Conservation issued a unitization order creating three coal seam natural gas production units where the drilling operations will begin. Angelle noted, “Our energy industry leaders are still very much at work in our state, and I am encouraged that more commercial ventures like this will be sought out in the near future.” The order took effect in December 2005.

State oil and gas statutes call for the department’s Office of Conservation to require operators to comply with specified rules for drilling wells within conservation units. The unitization order allows Mark V Petroleum Company of Monroe, LA to explore and produce coal seam natural gas but no permits to date have been issued.

Commissioner of Conservation James “Jim” Welsh said this is the first time the state has issued orders for the production of coal seam natural gas, which is also called “coal bed methane”. He said this particular fuel is found embedded in buried seams of lignite and coal at depths between 2,000 to 5,000 feet. Welsh said this type of natural gas has been identified in many areas in the northern and central portions of Louisiana, but until now, industry had not pursued commercial development of this alternative fuel source.

Editors: For more information on this topic, contact the DNR Public Information Office at 225-342-8955 or or Commissioner Welsh at 225-342-5500.

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