January 7, 2005

Contact Info:
Molly Absolon, communications director, 307-332-7031 ext 13 or 307-332-4621
Jill Morrison, Powder River Basin Resource Council, 307-672-5809
Neil Levine, EarthJustice Legal Defense, 303-871-6985
Jeff Kessler, Fund Biodiversity Associates, 307-742-7978

Casper, WY— In a stunning victory for Wyoming ranchers, a federal judge ruled the government has illegally been issuing dredge and fill permits to coalbed methane operators in Wyoming. The permits govern the construction of reservoirs for water from coal bed methane gas wells as well as roads and pipelines in Wyoming. The US Army Corps of Engineers said it would cease issuing the permits until it can correct its permit approval process. The ruling comes in a case brought by Earthjustice on behalf of the Wyoming Outdoor Council, the Powder River Basin Resource Council and Biodiversity Associates. The suit challenged the Army Corps of Engineers' general permit that governs the construction of reservoirs for water from coal bed methane production wells as well as roads and pipelines in Wyoming. An estimated 12,000 to 15,000 producing gas wells in Wyoming won’t be affected by the ruling but an additional 35,000 planned wells could be.

Federal judge William Downes ruled that the federal government failed to consider cumulative impacts multiple gas-water reservoirs had on non-wetland resources. He also found the Corps failed to consider the impacts to private ranchers. The judge admonished the federal government saying, ”Mineral resources should be developed responsibly, keeping in mind those other values that are so important to the people of Wyoming such as preservation of Wyoming’s unique natural heritage and lifestyle.” The ruling continued, “This Court will not rubberstamp an agency determination that fails to consider cumulative impacts, fails to realistically assess impacts to ranchlands, and relies on unsupported, unmonitored mitigation measures.”

Coal bed methane is natural gas that is trapped in the fissures and fractures of underground coal beds by overlying water in underground aquifers. The gas is released when the water is pumped to the surface, at a rate of anywhere from several up to hundreds of gallons a minute, easing the pressure and allowing the gas to follow the water up. This water has been found to contain salts, arsenic, iron, barium and manganese.

The high salinity levels not only threaten rivers and streams, but also farms and ranches since many plants are sensitive to salinity levels in the water and soils. Over time these soils can lose their productivity as the salts begin to saturate the soils.

Since 2001, billions of gallons have been pumped from underground aquifers to get at the coalbed methane gas. Much of this water is heavy in minerals and lethal to native plants and crops. It is pumped into unlined ponds designed intentionally to leak into the groundwater. Unique fish and aquatic plant communities in Wyoming's streams are also threatened by both the quantity and quality of CBM-produced water. Ranchers in Wyoming, including some who had suffered lost crops poisoned by coalbed methane produced water, reacted to the ruling. “We’re happy.”

“The effects of this general permit on Wyoming’s ranchlands has been devastating. The salty water released on the land harms native grasses and other vegetation,” says Molly Absolon, the communications director at the Wyoming Outdoor Council, one of the petitioners in the case. “The implication of this decision is that the Army Corps of Engineers will now have to issue individual permits for each reservoir which means site-specific analysis will have to be performed.”

The Powder River Basin in northeast Wyoming and part of Montana, has seen a huge surge in drilling for coal bed methane. In 1995 there were 110 coal bed methane wells in the basin. Today there are over 12,000 CBM wells that have been drilled in northeast Wyoming, with another 8000 wells that have been permitted for drilling. Coal bed methane now provides almost 8 percent of the nation's reserve of natural gas, more than quadrupling its share of the reserve since 1989. Over 50,000 wells are expected to be drilled in the Powder River Basin by 2010. Current estimates are that the basin will eventually have between 2000 and 4000 reservoirs to serve all of these wells.