{ "id": "RL32262", "type": "CRS Report", "typeId": "REPORTS", "number": "RL32262", "active": false, "source": "EveryCRSReport.com", "versions": [ { "source": "EveryCRSReport.com", "id": 104269, "date": "2004-03-09", "retrieved": "2016-04-08T14:25:32.539302", "title": "Selected Legal and Policy Issues Related to Coalbed Methane Development", "summary": "Coalbed methane (CBM) has rapidly become a significant source of natural gas in the United\nStates. \nWith growing consumer demand, high natural gas prices, and significant political support for\ndevelopment, the CBM production industry has grown exponentially. Pending legislation, such as\nthe omnibus energy bills, S. 2095 and H.R. 6 , would provide additional\nproduction incentives. Increased CBM interest has had significant consequences, leading to frequent\ndisputes over CBM ownership, the adequacy of federal leasing process, and federal and local\nenvironmental regulation.\n The federal government owns significant amounts of the economically recoverable CBM\nmineral estate. Portions of this federally owned resource are, however, contained within \"split\nestates,\" where a non-federal entity owns the rights to the surface estate. Additionally, the federal\nland disposal statutes that created these split ownership situations did not always retain all mineral\nrights. Thus, determining if the federal government owns CBM can be a complicated issue with\nsignificant ramifications. Even when ownership is clear, development rights may conflict. Several\nproposed federal laws, including H.R. 3698 , would address many of these issues.\n When the federal government owns CBM, it is generally available for leasing under the Mineral\nLeasing Act of 1920 and the Federal Onshore Oil and Gas Leasing Reform Act. These laws\nestablish a complex decision making process that must be accommodated before drilling of federally\nowned CBM can take place. These laws require a several stage planning and decision making\nprocess, which is also subject to the environmental review procedures required by the National\nEnvironmental Policy Act. Recent lawsuits have challenged the adequacy of the BLM's compliance\nwith federal leasing requirements, although the few that have reached decision have found BLM's\npractices to be sound.\n Environmental impacts attendant to CBM production have received the most widespread\nattention. CBM production results in extraction of large quantities of water. By depleting\nunderground aquifers, CBM production could have significant impacts on regional water supplies,\nand state water rights law would not appear to currently require the safeguards some argue are\nnecessary. The disposal of produced water is also controversial. It is typically of low quality and\nhas recently been held to constitute a pollutant that must be regulated under the Clean Water Act. \nOther activities associated with CBM production are equally contentious. In particular, the\nextraction process known as hydraulic fracturing has been claimed by some to pollute water supplies. \nAt least one federal court has held that the process must be regulated under the Safe Drinking Water\nAct, although proposed federal legislation would exempt the process from coverage.\n This report will address the major legal issues outlined above as well as the recent cases and\npending legislation that may impact CBM development. It will be updated as necessary.", "type": "CRS Report", "typeId": "REPORTS", "active": false, "formats": [ { "format": "HTML", "encoding": "utf-8", "url": "http://www.crs.gov/Reports/RL32262", "sha1": "ece57464dc320d675f8ca9aa3026aa91a956fea9", "filename": "files/20040309_RL32262_ece57464dc320d675f8ca9aa3026aa91a956fea9.html", "images": null }, { "format": "PDF", "encoding": null, "url": "http://www.crs.gov/Reports/pdf/RL32262", "sha1": "197ed6e0727ac9e9084d20f6fdf9324692a72799", "filename": "files/20040309_RL32262_197ed6e0727ac9e9084d20f6fdf9324692a72799.pdf", "images": null } ], "topics": [] } ], "topics": [ "Energy Policy", "Environmental Policy" ] }