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Powder River Basin Coalbed Methane Development and Produced

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Mineral Ownership<br />

Table 1-7. Loss of Mineral Royalties from CBM ($MM)<br />

Surface<br />

Discharge* Impoundment<br />

Alternative Water Disposal Options<br />

1-16<br />

Shallow<br />

Reinjection<br />

Active<br />

Treatment<br />

Federal ($268) ($401) ($1,349-1,687)<br />

State ($41) ($61) ($207-$258)<br />

Private ($197) ($294) ($991-$1,239)<br />

TOTAL ($506) ($756) ($2,547-$3,184)<br />

* A total of $4,659 million of mineral royalties would be collected under Case 2 economic conditions<br />

<strong>and</strong> surface discharge.<br />

State severance <strong>and</strong> county ad valorem tax receipts average about $0.15/Mcf (assuming<br />

Case 2 economic conditions <strong>and</strong> 12% (WY) <strong>and</strong> 9.3% (MT) tax rates). The aggregate tax<br />

receipt losses range from $360 to $2,270 million depending on the water management<br />

practices required.<br />

1.5.6 More stringent CBM produced water management practices will lead to less capital<br />

investment <strong>and</strong> service work in the <strong>Powder</strong> <strong>River</strong> <strong>Basin</strong>. The loss of CBM well<br />

drilling <strong>and</strong> capital investment by mineral ownership due to more stringent CBM<br />

produced water management practices (using Case 2 economic conditions) is provided in<br />

Tables 1-8 <strong>and</strong> 1-9.<br />

Mineral Ownership<br />

Table 1-8. Loss of Well Drilling for CBM (# Wells)<br />

Surface<br />

Discharge* Impoundment<br />

Alternative Water Disposal Options<br />

Shallow<br />

Reinjection<br />

Active<br />

Treatment<br />

Federal (4,041) (6,324) (17,919-21,257)<br />

State (464) (726) (2,056-2,439)<br />

Private (2,120) (3,318) (9,940-11,151)<br />

TOTAL (6,625) (10,368) (29,915-34,847)<br />

* An estimated 46,944 wells would be drilled under Case 2 economic conditions <strong>and</strong> surface<br />

discharge. This represents more than 4,000 fewer wells compared to the WY draft EIS well-count<br />

estimate.

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