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Coalbed Methane

Coalbed methane is a form of natural gas that is produced from coal beds. It is composed mostly of methane, with small amounts of nitrogen, carbon dioxide, and heavier hydrocarbons like ethane. Coalbed methane is “sweet” rather than “sour.” This is because it does not contain hydrogen sulphide.

How is coalbed methane formed?

Coalbed methane is made naturally in our environment when coal forms underground. When dead plant matter breaks down in swampy areas, it eventually turns to peat and sinks further into the ground, tucked under layers of sand and mud. Over time, a combination of high temperatures and pressures causes this plant matter to harden into coal. Methane that is generated during this process becomes trapped within the newly formed coal.

The Alberta Geological Survey, a branch of the AER, has estimated that as much as 14 trillion cubic metres of coalbed methane is present in Alberta.

We regulate coalbed methane production in the same way that we regulate other natural gas operations. The application, exploration, drilling, and production processes are all the same, as are the operational regulations.

Our Detailed Requirements

The requirements in Directive 056 concerning wells apply to coalbed methane wells. Although baseline water-well testing is not mandatory, the AER continues to encourage the submission of baseline groundwater data using the Alberta water wells web application. The AER will maintain regulatory oversight to support safe and responsible operations. Best management practices for baseline water-well-testing  are available on the AEPA website. 

Compliance and Enforcement

We conduct regular inspections and audits to make sure that companies are following our requirements. If we find that a company isn’t complying, we’ll take the appropriate compliance and enforcement actions and share our findings on the Compliance Dashboard.