DCC
Member Update
July 17, 2003

Comment Deadline for Usibelli Coalbed Methane Leases has been extended until August 15, 2003
DCC met with Usibelli Coal early in July, and we now have information as to how Coalbed Methane Development may occur in the Healy Area.

  • If test wells are productive, Usibelli would first build a small methane powered electricity generation plant to power the mine itself. This project entails 20 wells on the Usibelli facility @ a 40 acre spacing.
  • If gas supplies are sufficient, the next phase would be to plumb the town of Healy, Lignite, and Otto Lake for residential natural gas. It is unknown to how many wells would be required, and where they would be located. The gas development most efficiently proceeds in a hub fashion, with each new well head potentially connecting another spur to another hub.
  • The most productive natural gas scenario is that enough methane gas is retieved to supply the Fairbanks market for natural gas, an estimated 15 Billion Cu Ft/Yr. DCC calculates the estimated demand requires approximately 400 - 450 wells spaced at approximately 80 acre intervals. Based on the Powder River statistics that 7,000 wells produces 700 Million Cu Ft/Day.

Usibelli already holds significant coal leases in the Healy Area. The new lease applications basically represent the perimeter of the possible affected areas.
Potentially affected landowners:

  • Private Property Owners
  • Denali Borough Municipal Entitlement Lands
  • University of Alaska Lands
  • Mental Health Trust Land
  • State of Alaska Land

View the Usibelli Coalbed Methane Lease

Although methane is touted as a clean burning fuel there are significant impacts associated with its extraction.

  • Unlike other forms of oil and gas extraction, Coalbed Methane requires a network of well sites at approximately 80 intervals throughout the landscape.
  • Each well requires that about 16,000 gal/day of water be discharged in order to extract the methane gas. There are significant erosion, water quality, aquifer, and water rights issues connected with CBM development.
  • Each well requires a network of roads and pipelines for extraction, construction, and maintaince.
  • The typical life cyle of a well is 10 years; 20 years maximum.
  • Every 10-20 wells requires a compression station, which is large and noisy at best, and needs roads accessable by large trucking traffic.
    In Alaska the sub surface mineral rights owner (the gas developer) holds legal precedence over the surface estate owner (the private property owner.) DCC is requesting that the Alaska DNR lease require that the mining operator negotiate surface use agreement with every property owner indivually, and that no one should be forced into such and agreement where significant hardship or loss of property value can be demonstrated.
    Read the DCC draft comment online: www.denalicitizens.org/coalbedmethanecommemts.htm

The discovery of a local source of gas could potentially benefit local residents if and only if the impacts incurred during the resource development do not degrade the long term tourism economy, the residential quality of life, or the valuable wildlife resource.

Learn more:
DCC's Coalbed Methane Page
Useful Weblinks on Coalbed Methane: www.denalicitizens.org.cbmlinks.htm
Read the application for lease announcement online: www.dog.dnr.state.ak.us

www.denalicitizens.org

Our Mission:
To preserve the natural integrity of Denali National Park and Preserve and to support a sustainable future for the Park
and the local community

Contact Us:
mail@denalicitizens.org

Community Organizer
Leslie Adams
leslie@denalicitizens.org

Project & Issues Coordinator
Linda Paganelli
lindapag@mtaonline.net

President
Nancy Bale
nancy@denalicitizens.org

DCC Board
Nancy Bale
Land Cole
Allen Cornelison
Nan Eagleson
Joan Frankevich
Bruce Lee

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