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2006 International News

December 21, 2006 - 2007 Ukraine CMM / CBM Delegation

Orientation Visit to U.S. Postponed

Due to recent and unforeseen developments in the Ukraine coal sector, the U.S. Trade &

Development Agency (U.S.TDA)-sponsored Ukraine delegation visit to the United States,

originally scheduled for late January 2007, has been postponed. The Business Briefing originally

planned for January 26, 2007, in Morgantown, West Virginia, has also been cancelled.

The purpose of the visit was to learn more about the U.S. coalbed methane (CBM) / coal mine

methane (CMM) industries and to facilitate partnerships between Ukraine and the U.S. During

this visit, the delegation had planned to learn about U.S. technologies, products, and

management methodologies in the CBM / CMM sector.

The orientation visit for the delegation from the Donbass coal region is anticipated to be

rescheduled in April or May 2007. For more information about the rescheduled orientation visit,

please email Mr. Dale Rice (darice@mse-environmental.com) or phone, 703-961-0710.

Top of page

December 14, 2006 - Poland Seeks to Join International Methane to

Markets Partnership

The Republic of Poland has officially requested to join the international Methane to Markets

Partnership. Poland would join the United States and 17 other countries in efforts to advance

the cost-effective, near-term recovery and use of methane – a potent greenhouse gas – as a

clean energy source.

The Methane to Markets Partnership is a public-private partnership that brings together the

technical and market expertise, financing, and technology necessary to advance methane

recovery and use projects at landfills, agricultural operations, coal mines and oil and gas

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systems. Member countries work in collaboration with the private sector, multilateral

development banks, and other governmental and non-governmental organizations through the

Partnership's Project Network. Currently, more than 480 organizations from around the world

have made commitments to this partnership.

There are now 18 Methane to Markets partner countries, including Argentina, Australia, Brazil,

Canada, China, Colombia, Ecuador, Germany, India, Italy, Japan, Mexico, Nigeria, Russian

Federation, South Korea, Ukraine, the United Kingdom and the United States. All countries that

request Partnership status must receive approval from the Partnership's Steering Committee.

Poland's application for membership will be addressed as one of the items at the upcoming

Steering Committee meeting in Rome on 14 – 15 December.

In 2003, Poland ranked 8th globally in coal production. Poland's coal mine methane (CMM)

emissions ranked 7th globally in 2000 and were about 470 million cubic meters (2003). Poland

has a number of coal mine methane projects underway that utilize CMM for power generation,

mine boilers, and industrial uses.

EPA coordinates the activities of several U.S. agencies under the Partnership, including the U.S.

Department of Energy, the U.S. Department of Agriculture, the U.S. Agency for International

Development, and the U.S. Trade & Development Agency.

More about Methane to Markets >>

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November 16, 2006 - EPA and India Sign Agreement to Establish

Coalbed / Coal Mine Methane Clearinghouse in India

Today, the U.S. Environmental Protection Agency and the Government of India formally signed

an agreement to work together to establish a clearinghouse which will be a vital hub of

information on coalbed and coal mine methane (CBM/CMM) projects in India, the world's third

largest coal producer. The two countries are collaborating on this venture as part of their

commitment to the international Methane to Markets Partnership, which aims to recover and

utilize otherwise-wasted methane resources. The U.S. Environmental Protection Agency, with

other U.S. federal partners, is providing assistance for the development of the India CBM/CMM

Clearinghouse.

"This clearinghouse will provide valuable information to potential investors and project

developers interested in coalbed and coal mine methane projects in India," said William L.

Wehrum, EPA's acting assistant administrator for Air and Radiation and chair of the Methane to

Markets Steering Committee. "This commitment represents yet another initiative between the

United States and India that will support clean development and energy security."

The India CBM / CMM Clearinghouse, which is expected to officially launch in 2007, will act as a

catalyst for domestic and international investors and will spur coalbed and coal mine methane

project development in India. EPA has successfully established coalbed methane clearinghouses

in several other countries including China, the Russian Federation, and Ukraine.

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October 19, 2006 - M2M Recent Activity Update

Under the auspices of both the Methane to Markets Partnership and the Asia Pacific Partnership,

CMOP sponsored a 2-day workshop in Brisbane, Australia on October 4-5, 2006, focusing on

coal mine methane issues. Other sponsors included Australia's Department of Industry, Tourism,

and Resources and the Center for Scientific and Industrial Research Organization (CSIRO) and

Japan's New Energy & Industrial Technology Development Organization (NEDO). Over 90

participants from more than 10 nations discussed technical issues related to extraction and

utilization of coal mine methane, including case studies at U.S. coal mines, a site visit to CSIRO's

Queensland Center for Advanced Technology, and financial discussions led by participants from

the World Bank and carbon financing organizations.

The workshop was followed on October 6, 2006, by the Methane to Markets Coal Subcommittee

Meeting. The meeting was attended by delegates from nine Partner countries and a visiting

delegation from South Africa, which is considering joining the M2M Partnership. The meeting

focused on progress made on researching site-specific project opportunities to be showcased at
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focused on progress made on researching site-specific project opportunities to be showcased at

the 2007 Partnership Expo. Five developing nations presented summaries of their project

opportunity templates and discussed their plans to develop additional "pipelines of projects" in

the coming months. The Subcommittee discussed preparations for the 2007 Partnership Expo,

including a coal specific agenda and formed a task force to further develop these plans.

Top of page

September 29, 2006 - Flares to Safely Burn Goaf (Gob) Gas at United

Colliery

As reported in International Longwall News on September 27, 2006, XSTRATA Coal's United

Colliery has shown how to safely flair goaf (gob) gas at an active longwall mine and will

capitalize on the resulting greenhouse gas (GHG) abatement credits.

United, located in New South Wales (NSW), produces about 3.5 million tonnes of semi-soft

coking coal per year. Mining has extracted 5 out of 10 longwall panels to date. Since mining

commenced, gas management consisted of a series of gas wells, with a combined capacity to

extract in excess of 3000 litres per second of goaf gas from the longwall operation.

In 2005, as a result of the Xstrata Coal NSW voluntary election to the NSW Greenhouse Gas

Abatement Scheme (GGAS), United commenced investigations into flaring a proportion of its

methane to generate Large User Abatement Credits (LUAC's) under the scheme. In May 2006,

Xstrata Coal released its Greenhouse Policy and entered into a cooperative agreement under

Greenhouse Challenge Plus with the Federal Government. Through this program and the NSW

Government's GGAS, Xstrata Coal has committed to abating more than 350,000t of methane

from underground operations by integrating a flaring system with the active underground

mining operation. Each flare had the capacity to consume up to 200 litres per second of gas

extracted from the goaf, abating over 125,000t of equivalent CO2 per year.

"The major safety issue is obviously the construction of a system with an open flame over an

active mining operation. The potential for ignition sources was considered to be the most

significant safety risk as methane is explosive at concentrations less than 15 percent," reported

Mary-Anne Murray, United's environmental coordinator. "A buffer trigger level of 30 percent has

been built into the system whereby the flares shut down if greater than 30 percent methane is

detected in the tube bundle monitoring system...Additional controls to monitor for flame and

heat in the flares and pipelines running to the flares included slam-shut valves, flame arrestors,

non-return valves and temperature monitoring both in the flare and on the pipeline."

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September 21, 2006 - Several Fatal Coal Mining Accidents in the Past

Week

There have been a number of fatal coal mining accidents in the past week, at least two of which

are related to coal mine methane.

Ukraine

An explosion at the Zasyadko Mine in the Donbass coal field in Ukraine on 19 September killed

at least eleven miners and injured more than 60 people, according to Reuters and CNN.com. 28

miners remain missing, while 172 miners were evacuated from the mine. Officials said that the

explosion, which occurred more than 1,000 meters below the surface, was caused by a mixture

of coal powder and methane.

In August 2001, more than 50 miners died in a blast at the Zasyadko mine. A similar blast at the

mine in July 2002 killed more than 20. Accidents occur frequently in Ukraine's coal mines, which

suffer from a lack of capital and poor maintenance.

More information >>

Kazakhstan

An explosion at the Lenin coal mine in the central Karaganda region killed more at least 32

people, injured three, and left eight missing. The mine is about 200 km north of the capital
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Astana.

According to the Associated Press, more than 300 miners escaped on their own, said Stanislav

Sytnik, a regional emergencies official. A fire caused by the morning blast had been put out,

according to Zhanar Bekbanova, spokeswoman for the Karaganda regional administration. The

mine is owned by Arcelor Mittal, which said in a statement that it was unknown what caused the

methane gas explosion, and that a full investigation would be launched. For more information,

please see:

http://www.highbeam.com/doc/1P1:103115874/Mine+Explosion+Kills+23+in+Kzakhstan.html?

refid=ency_botnm

South Africa

A mine shaft collapsed and killed two miners at Kumba Resources Tshikondeni coal mine. Kumba

is majority-owned by Anglo American. Rescue teams worked for two days to reach the trapped

mines, but their efforts were hampered by "poor roof conditions" ground problems.

More information >>

China

Carbon monoxide poisoning at the Yuequan coal mine killed four miners on September 19. The

mine is located in Chengde City, in the Hebei Province in north China, about 224 km northeast of

Beijing. The cause of the accident is being investigated.

On September 13, a coal mine accident in northern China killed one worker and left another 23

trapped on Wednesday, the official Xinhua News Agency said. The accident occurred in a mine in

the city of Datong in Shanxi province. No details were provided about the nature of the accident

or how many people were in the mine at the time.

Top of page

September 14, 2006 - Chinese Press Reports on CMM and CBM

industry

A September 2 article on www.ChinaDaily.com tells the story of a taxi driver in Shanxi Province

whose cab has been refit to burn compressed coalbed methane (CBM) and gasoline. In his area,

one cubic meter of CBM is equivalent to 1.13 liters of gasoline but retails at less than half the

price of gasoline. About 90 percent of the 1,300 taxi cabs in Jincheng City—50 km from the

country's largest CBM exploitation base in Qinshui Basin—have been similarly refit.

The article also discusses CBM policy initiatives recently carried out by the Chinese government.

On June 19, the State Council, China's Cabinet, promulgated a 16-clause guideline offering a

series of preferential policies on land use, taxation, loans and access of methane-generated

electricity to local power grids. As a result, financial, taxation, and land resources authorities are

currently preparing measures, under the direction of the National Development and Reform

Commission (NRDC), to put the guidelines in to practice.

One of the goals of such legislation is to encourage greater foreign investment in the CBM

industry. To date, China United Coalbed Methane Corporation (CUCBM) has 27 contracts for

CBM exploitation with companies such as the United States' Chevron and other foreign

companies in Britain, Canada, and Australia. On April 5, CUCBM signed a cooperative contract

with Orion Energy International to join into a Product Sharing Agreement (PSA) for exploitation

of CBM resources in Shanxi Province.

Entire article >>

Top of page

September 7, 2006 - Blast Reported at Indian Mine

As reported in the Associated Press today, rescuers searched Thursday for 53 miners feared

dead inside a coal mine in eastern India following an explosion, an official said. The explosion

occurred Wednesday night at the mine, about 150 kilometers (95 miles) northeast of Ranchi, the

capital of Jharkhand state, local town administrator Beela Rajesh said.
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"The [miners] are trapped at a depth of 200 meters (yards) and chances of their survival are

bleak," said Partho Bhattacharya, chairman of the state-owned Bharat Coking Coal Ltd., which

owns the mine. A pocket of natural methane gas, apparently opened by the explosion, began

leaking out just after the blast, he said.

Two rescue teams have entered the mine and succeeded in reopening air vents, Bhattacharya

told The Associated Press. Three people managed to escape and were hospitalized, but

rescuers were searching for 53 miners still trapped inside, Rajesh said. The three suffered burn

injuries, indicating there could be a fire inside the mine. "However, they lost consciousness and

were hospitalized and could not be questioned," Press Trust of India news agency quoted Bal

Kishan Munda, a local administrator, as saying.

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August 24, 2006 - Reminder - CMM Workshop in Australia

You are invited to participate in the upcoming Coal Mine Methane Workshop to be held in

Brisbane, Australia, on 4-5 October 2006. This workshop is being held under the auspices of the

Methane to Markets Partnership and the Asia Pacific Partnership for Clean Development and

Climate. This two-day workshop is being co-sponsored by U.S. Environmental Protection

Agency's Coalbed Methane Outreach Program (CMOP), Australia's Department of Industry,

Tourism, and Resources, and Japan's New Energy and Industrial Technology Organization

(NEDO).

The workshop will provide an opportunity for the coal mining community, coal mine methane

project developers, vendors, and others to learn from technical experts from the U.S., Australia,

and Europe about gas drainage technologies, methane recovery technologies, and case studies

of coal mine methane projects in the U.S. and Australia. It will include a site visit to the

Queensland Centre of Advanced Technology. A draft agenda, on-line registration, and hotel

information (Brisbane Marriott) is provided on the Methane to Markets website at

http://www.globalmethane.org/news-events/event_detailsByEventId.aspx?eventId=213.

Although the workshop is free of charge due to generous sponsorship, advance registration is

required.

Immediately following the workshop is a one-day meeting of the Methane to Markets Coal

Subcommittee. Registration for this meeting is also available on the Methane to Markets Web

site.

For more information, please contact Ms. Pamela Franklin (franklin.pamela@epa.gov).

Top of page

August 11, 2006 - Riversdale Reports Successful Exploration at South

African Colliery

Australia-listed Riversdale Mining said in a statement that its exploration at the Zululand

Anthracite Colliery (ZAC) in South Africa indicated "new and substantial sources" of anthracite at

two blocks being explored. Riversdale is the operator and owns 74% of ZAC, located in northern

Kwazulu-Natal province of South Africa. ZAC is a former BHP Billiton operation. ZAC chairman

Michael O'Keeffe said in the statement that "considerable progress has been made at ZAC since

the company's last update to shareholders." "In particular, several encouraging developments

are underway at the Deep E and Ngwabe Blocks, both confirming their potential as new and

substantial sources of anthracite." Riversdale said the Deep E Block development is on schedule

in November 2006 and on budget. It also said it was "pleased with the exploration success in

the Ngwabe Block of leases, with drilling having resumed in the area, and with a number of

encouraging results to date." A number of gassy abandoned anthracite mines are located in this

area.

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July 20, 2006 - CMM Global Overview Launched on M2M Web site

A new publication has been finalized and posted on the Methane to Markets Web site. The CMM

Global Overview profiles the coal, coal mine methane, and coal bed methane industries of all 18

Methane to Markets member countries and 14 additional coal-producing countries worldwide.

The publication's introduction contains information and data on all 32 profiled nations in one
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The publication's introduction contains information and data on all 32 profiled nations in one

place for easy reference. Developed by U.S.EPA (CMOP), the CMM Global Overview is being

posted in Final Draft For Public Comment and Review form; please forward any comments to

Pamela Franklin (franklin.pamela@epa.gov).

Entire document or individual country profiles >>

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July 6, 2006 - Germany Becomes 18th M2M Member Country

Germany Joins Methane to Markets as 18th Partner Country - On 3 July, Germany signed the

Methane to Markets Terms of Reference and officially became a Partner of M2M. In particular,

Germany has strong experience, technology, and knowledge of advanced waste management

practices in landfills, implementing gas pipeline rehabilitation programs in local gas distribution

networks, and coal mine methane-based power projects. Germany is the fourth country to join

the Partnership since the initiative's launch in 2004, joining 14 charter Partners including the

U.S.

EPA press release >>

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June 1, 2006 - 2006 IPCC Guidelines Now Available

The Intergovernmental Panel on Climate Change (IPCC) has released the pre-publication draft

of the 2006 IPCC Guidelines for National Greenhouse Gas Inventories. It is not yet in final form,

but it is publicly available and accessible. Section 4.1 in Volume 2 (Energy sector) pertains to

fugitive emissions from the coal mining sector. For the first time, these guidelines include

guidance on estimating emissions from abandoned (closed) coal mines.

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May 25, 2006 - Caterpillar Signs Contract with Jincheng CMM Project

With direct assistance from EPA, TDA, and other federal partners, U.S.-based engine

manufacturer Caterpillar Inc. has landed a $58 million contract from China to supply the power

generation equipment for the world's largest power plant fueled by coal mine methane (CMM).

The power plant will produce 120 megawatts of electricity from coalbed and coal mine methane

from the Sihe mine in Jincheng, in addition to exhaust gas heat that will be recovered to

produce usable hot water and steam for the mining operations. This project is the result of

collaborative efforts between the public and private sectors through the Methane to Markets

Partnership, a U.S.-led initiative that now includes 17 partner countries, including China. This

project also supports the goals of the Asia-Pacific Partnership on Clean Development and

Climate, of which China and the U.S. are members.

EPA news release >>

Top of page

May 18, 2006 - Two Noteworthy CMM Events in the Russian

Federation

St. Petersburg Workshop

The UN Economic Commission for Europe, the State Research Institute on Mine Geomechanics

and Mine Surveying (VNIMI, St. Petersburg, the Russian Federation) and PROMGAZ have issued

an announcement and call for papers for a workshop in St. Petersburg from 20-22 September

2006. The workshop is being organized in cooperation with the Russian Federationn Ministries

of Education and Science, Industry and Energy, Federal Energy Agency, "Rostechnadzor",

"Severstalresurs", "Siberian Coal Energy Company (SUEK)" and others. The purpose of the

workshop is to define the most appropriate technologies and practices for the development of

more efficient and effective production of methane from coal seams (coalbed methane or CBM)

and methane degasification of coal mines (coal mine methane or CMM) for the purposes of
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developing unconventional energy resources, ensuring safe mining operations and improving

the investment climate for such projects. For more information please contact Clark Talkington

(clark.talkington@unece.org) or VNIMI (post@vnimi.ru) or check the Web site.

Kemerovo Conference—new dates

The international conference held in Kemerovo, Russian Federation, entitled "Coal Mine

Methane: Recovery, Utilization, Investment Opportunities" has been rescheduled to June 19-20,

2006. The goal of the conference is to discuss applications of modern technologies and

equipment for coal mine methane (CMM) recovery and utilization. Emphasis will be made on

practical measures aimed at methane emission reduction from coal mining and project

investment opportunities in the coal mining industry under the Kyoto Protocol and other

available mechanisms. This free conference will be hosted by the International Coal and

Research Center – Uglemetan, a non-profit organization headquartered in Kemerovo.

More information >>

Top of page

May 11, 2006 - UN Side Event Includes CMM Project Discussion

The U.S. and Canadian governments co-hosted a well-attended Methane to Markets Partnership

side event at the United Nations Commission for Sustainable Development (CSD) meeting on

May 2, 2006, at the United Nations. This interactive Partnership event drew over 40 attendees

from the private sector, multi-lateral development banks, NGO's, and national and regional

governments. The event served to educate key stakeholders about the Partnership and

provided a forum for discussion of experiences in implementing successful methane capture and

use projects. The coal sector highlighted the Jincheng Anthracite Mining Group's planned 120-

MW power project in Shanxi Province, China. The side event featured presentations by

Environment Canada, EPA, the World Bank, the Alberta Energy and Utilities Board, and

Caterpillar Inc.

At the event, the Methane to Markets Partnership announced the Methane to Markets

Partnership Expo: a Forum for Projects, Technology, Financing, and Policy, which will be held in

Beijing, China, in the fall of 2007. Exact dates and sites will be announced soon.

Latest newsletter of the Methane to Markets Partnership (PDF) >> (6 pp, 419K)

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May 4, 2006 - Asia Pacific Partnership Convenes Meetings

From April 18-21, 2006, the Asia Pacific Partnership (APP) convened a meeting of the Policy

Implementation Committee (PIC) and Task Forces in Berkeley, CA. The APP is a six-nation

initiative designed to accelerate the development and deployment of clean energy technologies.

The purpose of this meeting was to advance the development of Action Plans for the eight

program areas identified at the Sydney Ministerial meeting in January 2006, including Coal

Mining and Clean Fossil Energy.

Five of the Asia Pacific Partner nations sent delegations to the Coal Mining Task Force: Australia,

China, India, Japan, and the United States. The United States delegation includes

representatives from EPA (Coalbed Methane Outreach Program), Department of Interior (Office

of Surface Mining), Department of Energy, the National Mining Association (NMA), and two U.S.

coal mine companies. Task Force Action Plans are expected to be completed by August 2006.

More updates on the Asia Pacific Partnership >>

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April 27, 2006 - 2006 NACBM Spring Forum a Success

The North American Coalbed Methane (NACBM) Forum held its spring 2006 session in

Canonsburg, PA on April 19. The conference began the morning with two presentations from

U.S. Federal Government staff. A representative from the Department of Energy's National

Energy Technology Laboratory (NETL) spoke about the role of methane drainage in coal mine
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safety in light of recent coal mine accidents. The EPA's Coalbed Methane Outreach Program

(CMOP) followed up with an update on coal mine methane recovery and utilization activity in the

United States. Through out the rest of the day, 85 plus attendants heard seven additional

presentations on coalbed methane (CBM) and coal mine methane (CMM) topics including new

state legislatives, improved CBM fracturing techniques, CBM production lessons learned, CBM

and CMM gas clean-up technologies, and proposed standards for calculating the gas content of

North American coal. The next Forum session will be help in fall 2006.

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April 20, 2006 - Two Notable International Publications Released

The International Labor Organization (ILO) has published their Draft code of practice on safety

and health in underground coalmines which includes relevant parts on methane control. They

will hold a meeting of their Experts group to discuss the draft code in May.

The Institute for Global Environmental Strategies (IGES) recently announced that the CDM

Country Guide - a series of manuals for CDM project development in Asia - is now available for

six countries (PDF) (199 pp, 1.6MB). The CDM Country Guide for China includes a section on coal

mine methane and coalbed methane.

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April 13, 2006 - New VAM Technology Demonstration Announced by

Australia and China

As reported in International Longwall News on Friday 7, researchers from Australia and China—

both founding members of the Methane to Markets Partnership—have announced plans to build

the first ever pilot-scale demonstration VAMCAT (Ventilation Air Methane Catalytic Turbine),

which they say will take a sizable bite out of methane emissions from underground coal mines.

The low heating value gas turbine will be powered by about 1% methane in ventilation air. It

will generate green power while also consuming the mine's fugitive methane, which is 23 times

more potent than carbon dioxide as a greenhouse gas over a 100-year timeframe.

The Commonwealth Scientific Industrial Research Organization (CSIRO) and the Australian

Greenhouse Office together with China's Shanghai Jiaotong University and Huainan Coal Mining

Group will construct the demonstration unit at a Chinese mine. The project is being conducted

under the Australian Government's Bilateral Climate Change Partnerships Program along with

support from an Australia-China special fund grant under the Australian Government

International Science Linkage Program. The initial investigation of catalytic combustion

performance was supported by a grant from the Australian Coal Association Research Program

(ACARP).

A prototype demonstration unit with a power output of 10-30 kilowatts will first be

demonstrated in the Chinese mine. Operational performance data and experience gained from

this small unit will be used for the design of a second-generation turbine with an output of at

least one megawatt.

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March 30, 2006 - New Energy Publications Available

Reserves, Resources, and Availability of Energy Resources 2004

The Federal Institute for Geosciences and Natural Resources (BGR), located in Germany, recently

released a brief study on the reserves, resources, and availability of coal, oil, gas, and uranium

in 2004.

Voluntary Reporting of Greenhouse Gases-1605(b) Annual Report

The Energy Information Administration (EIA) released the annual report titled "Voluntary

Reporting of Greenhouse Gases, 2004" on March 6, 2006, in PDF format. This annual report is

prepared by the EIA's Office of Integrated Analysis and Forecasting, pursuant to requirements

under Section 1605(b) of the Energy Policy Act of 1992 (EPACT).

Proceedings of the UNECE Group of Experts and Task Force Meetings

Documents and Presentations from the Second Session of the Ad Hoc Group of Experts on Coal
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Mine Methane and the Second Session of the Task Force on the Economic Benefits of Improving

Mine Safety Through Extraction and Use of Coal Mine Methane are available on the web. The

events were hosted by the United Nations Economic Commission for Europe (UNECE).

Proceedings of the World Bank Group's Energy Week

The World Bank's annual Energy Week took place on March 6-9, 2006, at the World Bank's

headquarters in Washington DC. It built on the G8 Plan of Action adopted at Gleneagles that

outlines the way ahead on clean energy, infrastructure, climate change and Africa. Themes

included energy security; clean energy and low carbon energy development; governance and

anti-corruption in the energy sector; and energy for growth and poverty reduction in Africa.

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March 23, 2006 - Conference Announcement—NACBM Spring Forum

The Officers and the Board of Directors of the North American Coalbed Methane Forum (NACBM)

invite interested parties to attend the upcoming NACBM Spring Session. This season's

conference will be held on April 19, 2006, at the Hilton Garden Inn-South Pointe in Canonsburg,

Pennsylvania. A welcoming reception is also included on the agenda on the evening of April 18.

The NACBM Forum celebrated its twentieth anniversary at its 2005 fall conference in

Morgantown, West Virginia. The agenda for this spring's event includes presentations from CBM

Consulting, Department of Energy's National Energy Technology Laboratory (NETL), EPA's

Coalbed Methane Outreach Program (CMOP), Penn Virginia, Steptoe & Johnson, Halliburton,

Appalachian Energy, Engelhard, and the United States Geological Survey (U.S.GS). The

registration form will soon be available on the CMOP Web site. The deadline for early

registration fee is April 12, 2006.

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March 16, 2006 - New Mining Legislation Passes House in Mexico

As Reported by Platts on March 10, 2006, Mexico's House of Federal Representatives has

approved reforms to the country's mining laws that would make it possible for private sector

mining companies to use methane gas taken from their operations and to use it to generate

electricity for their own purposes. The companies would also be allowed to commercialize the

gas but only through state-owned Pemex. The bill, resuscitated in December after an earlier

version was shelved in 2003, will now be passed to the Senate Upper House for approval.

Current laws prohibit private companies from making use of excess gas as, according to the

national constitution, all such materials belong to the state. Debate of the proposed reforms to

Article 27 of the Constitution, which had been lying in Congress for several months, was rushed

onto the agenda following last month's mining disaster in Coahuila state, when a methane gas

explosion killed 65 coal miners.

An official from the Mexican Environmental Ministry reported to Reuters that 150 million cubic

meters of methane are liberated from Mexico's coal mines into the air each year. This

corresponds with EPA records that coal mine methane emissions in the Methane to Markets

partner country were equivalent to 2.2 million metric tons of carbon dioxide equivalent

(MMTCO2e) in 2000.

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March 9, 2006 - Indian U.S.AID Mission Requests Applications for

GDA Funding

The U.S. Agency for International Development (U.S.AID) mission in India has made a special

Request For Applications (RFA) for financially supporting activities that focus on the commercial

utilization of methane gas in India in support of the Methane to Markets Partnership. The RFA

promotes a U.S.AID model known as the Global Development Alliance (GDA). All entities,

including private sector energy managers or industry representatives, financial institutions,

research and academic groups, and NGOs, are strongly encouraged to apply.

In India as in other developing countries, energy is a prerequisite for economic growth, and

conversely, a lack of commercial energy constrains economic growth and social development.
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Methane could be used for electricity generation or fuel for industrial processes or domestic

applications. This would allow for substitution of methane for more polluting fossil fuels or

relieve the pressure on forest resources for fuel. The U.S.AID India mission would like to

stimulate this potential by providing a grant for concrete activities that will lead to methane

capture and productive utilization. Focal states include Andhra Pradesh, Gujarat, Karnataka,

Rajasthan, and Uttar Pradesh.

U.S.AID/India may place up to six awards totaling up to $400,000 for Fiscal Year 2006. The

financial support will serve as an incentive fund to minimize the risk and overall cost of the

proposed activity. Awards are made for up to 24 months. There are two deadlines for

submission of applications, which are limited to a 5-page concept paper in English. The first cutoff date is May 1, 2006, and the second and final cutoff date is June 16, 2006. Applications will

be evaluated on technical approach, past performance, and budget.

More information and application instructions >>

More information on the GDA >>

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March 2, 2006 - Ukraine's Cabinet Approved JI Procedures

As reported by a private Ukrainian company earlier this week, Ukraine's Cabinet officially

approved a set of Joint Implementation (JI) procedures in Decree #206 on February 22, 2006.

The legislation, which was subsequently signed by the Ukrainian Prime Minister, formally

outlines the Federal Government's procedures of consideration, approval and implementation

for domestic companies to carry out JI projects under Article 6 of the Kyoto Protocol.

The official procedure outlines a two-step process for the approval of JI projects by Ukraine's

Ministry for Environmental Protection (MENP). First, a project developer must submit an initial

application on the claimed amount of Emission Reduction Units (ERUs). The MENP is allowed up

to one month to consider the application and issue either a Letter of Endorsement (LoE) or a

written reason for refusal. If the application is accepted, the project developer must then submit

addition application material including a baseline study, ERU calculations, a monitoring plan, an

environmental impact assessment and a project financing plan. Within 30 days, the MENP will

submit either a Letter of Approval (LoA) or reason for refusal. The final application must be

submitted with the determination of one of the verifying companies that is accredited by the JI

Supervisory Committee.

This important step opens the way for Ukrainian companies, including coal mines interested in

developing coal mine methane recovery and utilization projects, to take advantage of the Kyoto

Protocol's financial support. Currently, Ukraine ranks 4th in the world in methane emissions from

coal mines.

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February 23, 2006 - UNECE Coal Mine Methane Meetings held in

Geneva

From January 30 to February 1, 2006, CMOP participated in coal mine methane (CMM) meetings

convened by the United Nations Economic Commission for Europe (UNECE), in Geneva,

Switzerland. The meetings included the Ad Hoc Group of Experts on Coal Mine Methane as well

as the Task Force on the Economic Benefits of Improving Mine Safety through the Extraction and

Use of Coal Mine Methane.

The Task Force aims to elucidate the benefits of methane recovery as a critical element of

improving mine safety and will conduct several detailed case studies to examine the economic

and safety benefits of incorporating methane recovery strategies at coal mines. The meeting of

the Ad Hoc Group of Experts featured presentations from country delegates, academic scholars,

and the financial sector. CMOP staff gave a presentation providing updates on global Methane

to Market Partnership activities in the coal sector. The Ad Hoc Group of Experts meeting featured

a workshop on the basics of project financing for CMM projects through securing debt and

equity investments. This workshop was the inaugural event of a EPA-funded UNECE project to

develop CMM recovery and utilization projects in Central and Eastern Europe and the

Commonwealth of Independent States (CIS). This project seeks to facilitate financing of CMM

projects in this region by overcoming the specific barriers of the mining community, building
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capacity to develop "bankable" investment documents, and providing access to the international

finance community. There will be a follow-up workshop in the future. The UNECE is an active

member of the Methane to Markets Partnership Project Network.

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February 16, 2006 - New CMM Utilization Project in Development in

Australia

In a December 2005 press release, GE Energy's Jenbacher gas engine business announced that

it has been awarded a contract to provide 10 generator sets for a new 10.6 megawatt power

plant that will use waste coal mine gas pumped from an active coal mine in the state of

Queensland, Australia.

GE is supplying Clarke Energy Australia Pty. Ltd. (CEA) with 10 of its JGS 320 GS-S.L Jenbacher

generator sets. Each Jenbacher unit will generate 1.06 megawatts of electricity. The plant, to be

commissioned in May 2006, is being built at the Oaky Creek coal mine in central Queensland.

The Oaky Creek coal mine is located in the southern part of the Bowen Basin, about 200

kilometers west of the Queensland coastline.

While waste coal mine gas plants often draw methane from closed mines, the Jenbacher

engines at Oaky Creek will be generating electricity at an operational coal mine. The power

generated at the Oaky Creek site will be fed into Queensland's high-voltage grid. Generating

this amount of power with coal mine methane instead of natural gas saves the equivalent of

approximately 13 billion cubic feet of natural gas per year.

CEA is supplying and installing the Jenbacher units as part of its turnkey project on behalf of

Envirogen, which was awarded up to $13 million by the Australian Government to construct or

modify three coal mine methane gas power stations at Oaky Creek, Teralba, Tahmoor. Australia

has the second largest commercially advanced coal mine methane (CMM) industry in the world,

the development of which the Australian Government has actively supported through the

Greenhouse Gas Abatement Program (GGAP). The Oaky Creek project is consistent with

Australia's industrial emissions reduction goals.

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January 26, 2006 - IUEP Announces Grants for Greenhouse Gas

Reduction Projects

In a January 20, 2006 press release, The International Utility Efficiency Partnerships, Inc (IUEP)

announced the release of its 2006 Request for Proposals (RFP) for developing and implementing

international energy efficiency projects and methane reduction projects that will result in the

reduction, avoidance, or sequestration of greenhouse gases (GHG). The RFP will provide funding

for approximately 10 to 15 GHG reduction projects with a total value of $4,000,000 including a

50/50 cost share requirement. The RFP is open from January 20, 2006 thru April 20, 2006. Grant

winners are expected to be announced in May, 2006.

Projects awarded under this year's RFP will be those that demonstrate quantifiable emissions

reductions that can be immediately implemented in host countries. RFPs in previous years have

placed an emphasis on renewable energy technologies and other high-efficiency, lower-GHG

power technologies that reduced, avoided, or sequestered GHG emissions. This year, IUEP will

give priority to projects that meet the criteria for inclusion in the Methane to Markets

Partnership.

The IUEP program is one of the voluntary initiatives created as part of the Power Partners

program, a collaborative venture announced on February 12, 2003 between the U.S.

Department of Energy (DOE) and the Edison Electric Institute (EEI). By making grants, IUEP

provides financial and managerial support to enable worthy projects to be deployed in the

international marketplace. These grant-making activities also encourage the development of

strong partnerships between the developing world and U.S. manufacturers, developers, and

electricity providers.

More information about this year's RFP >>

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January 19, 2006 - Coal Bed Methane Project Underway in India

Great Eastern Energy Corporation Ltd (GEECL Exit EPA), a Calcutta-based company incorporated

to explore, develop, distribute and market coal bed methane (CBM) in India, plans to initiate

CBM gas production in India at the Raniganj coalfields in West Bengal. Drilling operations for the

first 20 wells out of the planned 100 CBM wells will begin in mid January. GEECL expects an

investment outlay of $130 million for the 100 well program.

GEECL entered into a production sharing contract for CBM over a 210 square kilometer block in

Raniganj with the Ministry of Petroleum & Natural Gas. After a detailed evaluation report

undertaken by Schlumberger, the total CBM reserves at Raniganj are estimated to be

approximately 1.385 trillion cubic feet.

GEECL has drilled and tested three core wells and analyzed data from over 300 existing core

wells. The allocated area was declared commercially viable after desorption results gave gas

contents of up to 426 cubic feet per ton of coal, which are comparable to the Black Warrior and

San Juan Basins in U.S.A. Gas from the wells is currently being flared and production tests are

being carried out.

GEECL has entered into a tie-up with a compressed natural gas (CNG) supplier to purchase the

CBM gas from the three pilot production wells at pre-determined prices. Beginning in February

Calcutta Compression and Liquefication Company Ltd will begin conversion of CBM into CNG to

supply the transport sector. GEECL has also identified potential local consumers to whom gas

could be supplied. These include two steel plants and four power stations, which could be

accessed by relatively short pipelines.

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January 12, 2006 - The Russian Federation and Ukraine Settle

Natural Gas Dispute

On January 4, 2006, the Russian Federation and Ukraine inked a new five-year deal after a

pricing dispute between the two countries led the Russian Federation's Gazprom to follow

through on its threat to reduce pipeline gas flow to major European markets. The agreement

includes two long-term contracts – one on gas supplies to Ukraine and another on the transit of

the Russian Federationn gas via Ukraine to European consumers. Russian Federation supplies

about 25 percent of Europe's gas, with about 80 percent of that arriving in pipelines that cross

Ukraine. Some reports indicate that the price on the contract is only valid for the first six

months, however, and that the mechanism for the new price has not been agreed upon.

The terms of the agreement include a complex price scheme under which Gazprom would sell

gas to Ro-sUkrEnergo, a company half-owned by Gazprom and half by Austrian bank Raiffeisen,

at a rate of $230 per 1,000 cubic meters. RosUkrEnergo would then mix that gas with cheaper

gas from the Central Asian countries of Uzbekistan, Turkmenistan and Kazakhstan and sell it to

Ukraine at the price of $95 per 1,000 cubic meters. The new price is about twice as much as

Ukraine paid previously, but less than the fourfold increase the Russian Federation originally

sought. Ukraine will receive a 47 percent increase in transit fees for the gas which Gazprom

sends through Ukrainian pipelines to European customers. The new deal also brings an end to

the era of barter arrangements with both countries agreeing to pay cash for natural gas

deliveries and transit fees.

Ukraine currently operates with an energy deficit, producing less than 50 percent of its domestic

fuel and energy requirements from its own resources. More than three quarters of Ukraine's

natural gas supply is imported from the surrounding region, with the majority coming from the

Russian Federation. This reliance on imported gas supplies contributes to trade and political

imbalance, thus creating significant concerns about energy security and social instability.

Since Ukraine is heavily dependent on imported natural gas, any additional domestic source of

this fuel will serve to make the country's economy more self-sustaining. Ukraine is the world's

fourth-largest emitter of methane emissions from coal mining activities. According to a recent

EPA-sponsored study, 95 percent of the methane produced from Ukrainian coalmines is vented

directly into the atmosphere, creating a waste of energy and impacting the environment as a

major source of greenhouse gas emissions. Coal mine methane (CMM) and coal bed methane

(CBM) are attractive domestic energy sources for Ukraine and they are becoming more

economically feasible as regional market prices for natural gas increase.
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