Willow Area Community Organization (WACO) Informational Flier
Prepared by the CBM Ad Hoc Committee
Steve Charles, Chair

Coal Bed Methane...CBM...Shallow Gas

What does it mean for Willow?

Most of the ground beneath our homes and property in Willow has been leased for development of shallow gas or methane. This flier is designed to help inform you of possible changes that could affect you, your property and our community. 

Evergreen is currently exploring the Willow area for CBM development by drilling six "core holes." Their future plans call for more core holes and possible pilot wells this year.

For a color view of this image go to http://gasdrillingmatsu.org

What are my property rights concerning gas development?

Although private property owners may own the surface rights, the state retains the mineral rights to the
subsurface. This issue is known as “split estates.” Property owners may negotiate with developers for
access to the subsurface but they cannot deny access. Access can include tree/ground clearing, gravel pads, roads, pipeline construction, well drilling, pump and compressor placement and waste pits. If and agreement cannot be reached between property owner and developer then a bond is  required to cover potential harm to the property.

What is Coal Bed Methane?

Coal Bed Methane or CBM is a form of natural gas that is trapped in coal seams. This gas is held there by pressure from ground water. The methane will remain trapped as long as the water table is higher than the coal.

How is the methane developed?

Wells are drilled in coal seams down to 3000’ to remove the water and allow the gas to flow. The wells are
usually arranged in a grid pattern with one well every eighty acres and often increasing up to one well
every twenty acres. Each well will requires it’s own access road, pumps, and generators. A compressor
station is needed for approximately every 20 wells to transport the gas via pipeline to a processing facility.
This gas line cannot be “tapped” for local use.

Where has CBM development taken place?

Although new to Alaska, extensive CBM development has taken place in the Powder River Basin of 
Wyoming, and the San Juan and Raton Basins of New Mexico and Colorado.

How did all this come about in Alaska?

In 1996, Rep. Ogan introduced and the legislature passed HB394 expediting subsurface leasing for CBM development. It was intended to encourage gas development in rural areas.

In 2003, Rep. Kohring sponsored and Rep. Masek co-sponsored HB69 which streamlines the leasing process by removing CBM gas leasing and development from conventional oil and gas regulations.

This bill also exempts the state from local government ordinances if there is an “overriding state interest.” This means there are virtually no regulations governing shallow gas development.

What are potential impacts?

Economic:

* Short-term employment; most requires specialized personnel.
* Short-term increase in local economy from employees using local businesses.
* Short-term increase in state revenues (state royalties range from from 6.25% to 12.5%).
* Decrease in property values. (See note below)
* Increased expenditures for local infrastructure due to increased traffic use.
* Possible impacts on recreational and tourism based businesses.
* Loss of access to recreational areas.

Environmental:

* Lower water tables (each well pumps around 15,000 gallons/day).
* Possible contamination of surface/sub-surface by disposed water (usually saline).
* Methane seepage into private water wells or venting from the ground.
* Loss of scenic values.
* Wildlife habitat disruption and fragmentation.
* Dust, emissions, noise from generators, gas compressor stations, increased traffic.

Note: (An impartial survey by La Plata County, CO. found a loss of 22% as reported by the Anchorage Daily News).

What’s going on now?

The Alaska Department of Natural Resources, along with the Alaska Oil and Gas Commission and the
Mat-Su Borough, are sponsoring five public workshops this month to develop guidelines for shallow gas. Public input is important in helping DNR set meaningful guidelines, see the back of this flier for the schedule and topics.

                 The last workshop on February 28th is at the Willow Community Center.

The state legislature is currently developing legislation dealing with CBM management in response to public concerns in the Mat-Su and Homer areas

Web sites and other sources:

Alaska Department of Natural Resources: http://www.dog.dnr.state.ak.us/oil
Information on CBM in the Valley: http://www.gasdrillingmatsu.org
Evergreen Resources, Inc.: http://www.evergreen-res.com
Friends of Mat-Su: http://www.foms.net
Updates on current CBM legislation: http://www.alaska.net/”jrc/cbm.html
Cook Inlet Keeper: http://www.inletkeeper.org
Powder River Basin Resource Council: http://www.powderriverbasin.org
Wyoming Outdoor Council: http://www.wyomingoutdoorcouncil.org
CBM Information Center located in the lobby of the Willow Community Building.

This informational flier prepared by CBM ad hoc Committee
Steve Charles, Chair, Willow Area Community Organization