Lararmie, Wy – The state office of the Bureau of Land Management can now charge Coalbed Methane producers a higher amount for bonds. The associate field manager in Buffalo, Richard Zander, says the agency just got clarification that it is alright to get money from producers to cover the cost of reclaiming any water reservoirs.
Water reservoirs are built to hold water that is a byproduct of coalbed methane natural gas. Zander says up until this point bonding was required but no money was included for water reservoirs. He says this could mean a much higher cost for producers depending on the project.