Northern Cheyenne Reservation Coal Bed Natural Resource Assessment and Analysis of Produced Water Disposal Options

Abstract

Coalbed methane (CBM) development in the Powder River Basin (PRB) is currently one of the most active gas plays in the United States. Monthly production in 2002 reached about 26 BCF in the Wyoming portion of the basin. Coalbed methane reserves for the Wyoming portion of the basin are approximately 25 trillion cubic feet (TCF). Although coal beds in the Powder River Basin extend well into Montana, including the area of the Northern Cheyenne Indian Reservation, the only CBM development in Montana is the CX Field, operated by the Fidelity Exploration, near the Wyoming border. The Northern Cheyenne Reservation is located on the northwest flank of the PRB in Montana with a total land of 445,000 acres. The Reservation consists of five districts, Lame Deer, Busby, Ashland, Birney, and Muddy Cluster and has a population of 4,470 according to the 2000 Census. The CBM resource represents a significant potential asset to the Northern Cheyenne Indian Tribe. Methane gas in coal beds is trapped by hydrodynamic pressure. Because the production of CBM involves the dewatering of coalbed to allow the release of methane gas from the coal matrix, the relatively large volume of the co-produced water and its potential environmental impactsmore » are the primary concerns for the Tribe. Presented in this report is a study conducted by the Idaho National Engineering and Environmental Laboratory (INEEL) and the Montana Bureau of Mines and Geology (MBMG) in partnership with the Northern Cheyenne Tribe to assess the Tribe’s CBM resources and evaluate applicable water handling options. The project was supported by the U.S. Department of Energy (DOE) through the Native American Initiative of the National Petroleum Technology Office, under contract DEAC07- 99ID13727. Matching funds were granted by the MBMG in supporting the work of geologic study and mapping conducted at MBMG.« less