Coal bed concerns catch industry's ear

Tony Seskus
Calgary Herald
November 16, 2006

Canada's shrinking supply of conventional natural gas -- and society's demand for energy -- drives industry to CBM's door.

Thousands of coal bed methane wells are being drilled across Alberta this year and energy companies must walk the walk when it comes to dealing with concerns from rural landowners, say industry leaders.

The rapid emergence of coal bed methane wells -- touted as the next big energy play in Alberta -- has some rural residents worried about myriad issues, from the potential impact on groundwater to noise concerns.

At an energy conference Wednesday, the president of the Canadian Society for Unconventional Gas said the petroleum sector must commit to doing business in a way that recognizes and deals with the concerns of residents living near these wells.

"And that doesn't mean throw them a bunch of money and say 'Go away,'" Mike Dawson, manager of coal gas projects for Advantage Energy Income Fund, said in an interview.

"If we don't do a good job of this, then we have failed -- and we are going to be punished by not having access to the resource."

In an address during the first day of the conference, which drew hundreds of energy executives, industry players and landowners, Dawson added: "We, the industry, have to walk the walk."

Canadian Association of Petroleum Producers president Pierre Alvarez agreed, saying oil companies must continue with efforts to address landowner issues.

Though industry and regulators are responding, they want to do better, he said.

"There's no denying that there are legitimate concerns that a lot of people have," Alvarez said after speaking to the conference.

"When you look, though, at the number of wells that have been drilled, the amount of activity that's out there, I think they are relatively isolated."

CBM drilling in Canada has exploded in recent years, with more than 7,700 wells drilled in Alberta and another 2,500 expected this year. The unconventional gas, found in coal seams across much of Alberta, has brought new jobs, business and tax dollars to the countryside, but also an anxiety among some landowners.

For many, protecting groundwater is key.

Alberta Environment has investigated 55 complaints from residents who suspected coal bed methane activity had caused problems with their well water. All but 10 cases have been resolved, with no evidence that CBM affected their water.

Still, hundreds of rural residents have flocked to town hall meetings to learn about coal bed methane activity.

Dawson said companies are working hard to build and maintain relationships with rural residents.

But Don Bester, a landowner advocate and farmer from central Alberta, said not all companies are equal when it comes to dealing with rural residents.

Some energy firms take time to educate and work with farmers about development before its starts, whereas others are "just full steam ahead."

"Certain companies are doing very responsible jobs, but then you've got the big boys . . . that aren't," Bester said at the conference.

Other rural residents who attended Wednesday's conference said they've been pleased with the efforts of some companies operating in their area.

"So far, it's been positive from our standpoint," said Gord Sedgewick, who lives near Thunder Lake, north of Edmonton.

"There was a lot of concern about how this was going to impact the water level in the lake, if it was going to at all, and they've alleviated those concerns. . . .

"I guess we'll just have to wait and make sure everything they told us holds true."