Nino Ripepi Nino Ripepi Virginia Center for Coal and Energy Research, Virginia TechVirginia Center for Coal and Energy Research, Virginia Tech

Chris SheaChris SheaMarshall Miller & AssociatesMarshall Miller & Associates

SECARB - Central App. Update

SECARB Coal Group Research Team

Southern States Energy BoardSouthern States Energy BoardVirginia Center for Coal and Energy Research / Virginia Center for Coal and Energy Research / Virginia TechVirginia TechMarshall Miller and AssociatesMarshall Miller and AssociatesGeological Survey of AlabamaGeological Survey of AlabamaUniversity of AlabamaUniversity of AlabamaSouthern CompanySouthern CompanyKentucky Geological SurveyKentucky Geological SurveyAdvanced Resources InternationalAdvanced Resources InternationalEastern Coal CouncilEastern Coal Council

Phase II Partners(Cost Share, Data, Wells)

AlawestAlawestAlpha Natural Alpha Natural ResourcesResourcesAMVESTAMVESTAppalachian Production Appalachian Production ServicesServicesBuckhorn CoalBuckhorn CoalCDX GasCDX GasCNX GasCNX GasCONSOL EnergyCONSOL EnergyCumberland Resources Cumberland Resources Dart Oil & GasDart Oil & GasDenbury ResourcesDenbury Resources

DominionDominionEastmanEastmanEquitable ProductionEquitable ProductionGeoMetGeoMetInternational Coal GroupInternational Coal GroupMcJunkin AppalachianMcJunkin AppalachianNorfolk SouthernNorfolk SouthernNatural Resource PartnersNatural Resource PartnersPenn VirginiaPenn VirginiaPine Mountain Oil & GasPine Mountain Oil & GasPiney LandPiney LandPocahontas LandPocahontas LandPraxairPraxair

Progress OverviewDeveloped a suite of geologic maps for sequestration and Developed a suite of geologic maps for sequestration and ECBM analysisECBM analysisSelected a donated CNX Gas well (Russell County, VA) for Selected a donated CNX Gas well (Russell County, VA) for field test and finalized indemnification and operating field test and finalized indemnification and operating agreements agreements Completed Initial Reservoir Model and Injection SimulationCompleted Initial Reservoir Model and Injection SimulationWorking with DOE, EPA and Virginia Department of Mines, Working with DOE, EPA and Virginia Department of Mines, Minerals and Energy on permitting requirements Minerals and Energy on permitting requirements

Received NEPA categorical exclusionReceived NEPA categorical exclusionReceived DMME drilling permitReceived DMME drilling permitReceived EPA Class V injection permitReceived EPA Class V injection permit

Finished drilling monitoring well and core hole, logging Finished drilling monitoring well and core hole, logging complete, and wells instrumented.complete, and wells instrumented.Finished injecting 1,000 tons of CO2 at field testFinished injecting 1,000 tons of CO2 at field testMVA activities ongoing.MVA activities ongoing.Data analysis ongoing.Data analysis ongoing.

Ground Level

MonitoringWell

CO2Injection

Well

CO2 Saturated Coal SeamCH4 Saturated Coal SeamCO2 Injection Model

MonitoringWell

CNX Gas Field Test Location

StratigraphicColumn of

Injection Zone

1400 – 2300 feet in depth19 hydrofrac coalseams >

25 feet of net coal

1600

1700

1800

1900

2000

2100

2200

2300

LEEFORMATION

POCAHONTASFORMATION

DEPTH GR DENSITY

****

LEE FORMATIONINJECTION TEST

NET COAL: 8.2 FEET

*

*

**

POCAHONTAS FORMATIONINJECTION TEST

NET COAL: 6.4 FEET

LEGENDCOALSANDSTONE

SHALE

INJECTION ZONE

PERFORATED ZONE*

Monitor Well and Offset CBM Wells

BD114

BC114

BD113

BC115

BD115

BE115

BE114BE113

1604'

1433'

2167

'

Circle Radius1320'

1311'

2169'

1636

'

2297'

COALBED METHANE WELL

CNX GAS INJECTION WELL

0' 1000'500'

PROPOSED MONITOR WELL SITES

Monitor Well / Core Hole TestingGeophysical logs: gamma ray, caliper, density, Geophysical logs: gamma ray, caliper, density, neutron, induction, temperatureneutron, induction, temperatureVideo Camera log prior to injectionVideo Camera log prior to injectionDesorptionDesorption testing on coals to determine current testing on coals to determine current methane gas content and compare to initial gas methane gas content and compare to initial gas contentcontentMethane, nitrogen, and carbon dioxide adsorption Methane, nitrogen, and carbon dioxide adsorption isotherms on coal coresisotherms on coal coresPetrographicPetrographic analyses of core samplesanalyses of core samplesInjectionInjection--falloff tests of Lee and Pocahontas falloff tests of Lee and Pocahontas formation injection intervalsformation injection intervals

Drilling Monitoring Wells and Cementing Surface Casing

Coring and Desorption Testing

Monitoring, Verification and Accounting (MVA)

Monitor soil COMonitor soil CO22 and methane levels near the and methane levels near the injection wellinjection well

Soil Flux MeasurementsSoil Flux MeasurementsSoil SurveySoil Survey

Monitor ambient COMonitor ambient CO22 levelslevelsSubsurface and Surface Water SamplingSubsurface and Surface Water SamplingMonitor for tracers injected with COMonitor for tracers injected with CO22Monitor pressure and gas composition at monitor Monitor pressure and gas composition at monitor wellswellsMonitor gas and water production rates, and gas Monitor gas and water production rates, and gas composition at adjacent CBM wellscomposition at adjacent CBM wells

MVA Layout

Water and Gas Sampling

CO2 Soil Flux Measurements

Soil Survey

Monitoring Tower and Data Transfer

Injecting Tracer for MVA

CO2 Injection StatusAn initial injection with a 45An initial injection with a 45--ton slug of CO2 was completed ton slug of CO2 was completed on 01/10/2009on 01/10/20091,000 tons of the planned 1,000 ton test have been injected at a1,000 tons of the planned 1,000 ton test have been injected at an n average rate of 41.6 tons per day.average rate of 41.6 tons per day.

Injectivity was higher than anticipated.Injectivity was higher than anticipated.Maximum injection rate was 54.6 tons per day.Maximum injection rate was 54.6 tons per day.Injectivity decreased to 20 tons per day.Injectivity decreased to 20 tons per day.

The injection pressure was held below 1,000 The injection pressure was held below 1,000 psipsi..Both monitor wells reached 99% CO2 in their stream and Both monitor wells reached 99% CO2 in their stream and higher than anticipated pressure (higher than anticipated pressure (hydrofrachydrofrac).).OffOff--set wells did not show any increase in CO2 content or gas set wells did not show any increase in CO2 content or gas production.production.A Spinner Survey was run in the injection well to quantify the A Spinner Survey was run in the injection well to quantify the amount of CO2 going into each coal seam.amount of CO2 going into each coal seam.

CO2 Storage and Transport(104 ton storage capacity on site)

CO2 Injection

Injection Graph

Monitor Well Response

Ambient CO2 Sensor Overlay

Spinner Test on Injection Well

Spinner Results

Field Test Schedule

Site selection: Site selection: 04/07 04/07 –– 12/0712/07Permitting process:Permitting process: 02/08 02/08 –– 09/0809/08Soil gas monitoring: Soil gas monitoring: 04/08 04/08 –– 09/0909/09Coring: Coring: 08/08 08/08 –– 11/0811/08Formation testing: Formation testing: 11/08 11/08 –– 01/0901/09Install injection equipment: Install injection equipment: 12/08 12/08 –– 01/0901/09Injection testing: Injection testing: 01/09 01/09 –– 02/0902/09Well monitoringWell monitoring 02/09 02/09 –– 03/0903/09Site closure: Site closure: 06/09 06/09 –– 09/0909/09

Outreach

Groundbreaking and Site Visit