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To: GC who wrote (317)	4/30/2008 12:29:11 PM
From: GC	Read Replies (1) of 337

*************CBM water pipeline idea needs money By DUSTIN BLEIZEFFER Star-Tribune energy reporter Sunday, August 5, 2007 2:03 AM MDT Coal-bed methane gas producers say pooling their production water into a pipeline for underground storage is too expensive. A severance tax break may be needed to get the industry on board. Mark Doelger, chairman of the Wyoming Pipeline Authority, will make the recommendation to the Legislature's Joint Minerals, Business and Economic Development Committee. "Wyoming has a history of giving severance tax relief to encourage projects like this. Maybe this would be another case," Doelger said. Doelger serves on the Legislature's Coal-Bed Methane Task Force and was asked to gauge coal-bed methane producers' interest in a pipeline and storage project. Industry responded by saying the project would be too expensive. The idea is to gather coal-bed methane water from the center of the main production zone between Gillette and Buffalo, and pipe it to Teapot Dome for temporary underground storage. The water, which belongs to the state, could be used for municipal, agricultural or industrial uses. Advanced coal technologies, such as coal-to-liquids or coal gasification for electrical generation, would be the highest-value use of the water, according to Doelger. Energy reporter Dustin Bleizeffer can be reached at (307) 577-6069 or dustin.bleizeffercasperstartribune.net.

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