A Petroleum Industry Approach To Coal Mine Gas Drainage

EXECUTIVE SUMMARY An approach borrowed from the petroleum industry was applied to the gas development evaluation for the Bulga underground coal mine in New South Wales, Australia. The results enabled the coal mine operator, Xstrata Coal, to systematically plan the extraction of gas in harmony with mine production planning of multiple coal seams. This has allowed for a more proactive approach in preparing the resources and infrastructure needed to capture the gas and accelerate coal mining while maintaining their high level of commitment to safety. Norwest has for decades used gas recovery simulation models to assist the petroleum industry and the coal bed methane (CBM) industry in understanding and forecasting fluid saturations and flow behavior. Norwest developed a similar process with Xstrata to migrate existing mine data at Bulga into reservoir simulation models to study various drainage alternatives. An interesting feature to the evaluation was also developing an understanding of test procedures and nomenclature from the mining industry to properly translate the data for input in simulators developed for the petroleum and CBM industries. The model was then calibrated to actual field data collected from drainage pilot tests that Norwest helped design and monitor at Bulga. The resulting calibrated predictions were then used to develop budgets, schedules, resource requirements, and alternatives for capturing the gas and delivering it to market ahead of mining. Increasing revenue, reducing emissions, improving schedules and cutting costs for the mining operations have all contributed to justifying this advanced approach at Bulga. It has also allowed Xstrata to expand their focus to the sizable gas reserves in seams not currently planned for mining. Several of these seams would be economic gas development targets once the gas recovery infrastructure is installed for the mine. The evaluation process was refined throughout this project and the resulting approach will benefit Xstrata with their broader strategic development of resources in the Hunter Valley and beyond to their worldwide operations.