GILLETTE - Coal-bed methane producers might create new options for managing millions of barrels of water pumped by gas wells if they collaborate on a project.

That's the idea behind a proposal by Gov. Dave Freudenthal in his "State of the state" address Monday to construct a pipeline from northeast Wyoming to the North Platte River to discharge coal-bed methane water.

Pending approval by the Legislature, the Wyoming Water Development Commission would conduct a $500,000 feasibility study to determine support and whether the logistics make sense.

Jon Wade, deputy director of the Wyoming Water Development Commission, said pumping coal-bed methane water to the Platte would help Wyoming meet its water appropriation obligations on the river. However, some groups such as the Powder River Basin Resource Council say that piping the water to the Nebraska-bound Platte defeats the state's mission of keeping and making good use of its water resources.

"It sounds like an innovative proposal that we could support, and the fact that the governor is talking about it sounds positive," said Todd Ennenga, spokesman for Devon Energy.

The industry is under pressure from Montana to curb its traditional practice of flowing coal-bed methane water down waterways leading to Montana. So far, only a small fraction of coal-bed methane water produced in Wyoming actually crosses into Montana.

However, several producers are poised to tap the Big George - thought to be the biggest methane-producing coal vein the basin. It presents a unique challenge because the Big George also holds a large volume of saline water that must be pumped to release the gas. It is overlain by Powder River Breaks country. where management options on the surface are limited.

Last year, Anadarko Petroleum Corp. resolved its own Big George water dilemma by beginning construction of its own water pipeline which will transport its water to the Salt Creek oil field in Natrona County, where it will be re-injected into a deep water aquifer.

Re-injection is an option for all producers, but the industry doesn't want its water management options whittled down. Ennenga said collaborative efforts such as a pipeline for re-injection or trans-basin discharge will likely receive support as long as they're not ultimatums.

"A lot of the Powder River Basin is still undeveloped," Ennenga said, noting that the volume of coal-bed methane water that will be produced is still unknown. "But in terms of sitting down with a group of producers and stakeholders, absolutely we would do that."

Various land applications must remain open, said Caroline Hamilton, a rancher in Sheridan County who irrigates with coal-bed methane water.

"We have grass like we never had before growing out in sagebrush land," Hamilton said. "Ranchers should have the option of its uses."

NewsTracker

* Last we knew: There are limited water management options for coal-bed methane water in some portions of the Powder River Basin.

* The latest: Gov. Dave Freudenthal wants to study whether there's enough interest for a collaborative effort among producers to pipe a percentage of coal-bed methane water to the North Platte River.

* What's next: The Legislature will consider the proposal in water development legislation.

Energy reporter Dustin Bleizeffer can be reached at (307) 682-3388 or dustin.bleizeffer@casperstartribune.net.