Coalbed methane gas production under production sharing agreements is permissible as shale gas production, central-basin gas production or oil production, or condensate production occurring in unconventional reservoirs.
Coal bed gas (methane) extraction is the extraction of coal bed gas (methane) from coal seams, host rocks, and underground cavities of operating mines, as well as depleted coal deposits, if the extracted gas (methane) is intended for further use as a material and/or energy resource.
Geological exploration, as well as the extraction of gas (methane) from coal deposits, are conditioned by the following objective conditions:
-the lack of guaranteed availability of gas (methane);
-the technological complexity of the industrial extraction and use of gas (methane) from coal deposits;
-the increased explosion and fire hazard of gas.
The main directions of development in the field of coalbed gas (methane) use are its use as a material and/or energy resource:
-at the extraction site;
-by delivering it to the end consumer via gas transportation networks, including as a mixture with natural gas.
The right to extract gas (methane) from coal deposits during degassing of operating mines is granted to the holder of a special permit for the industrial development of a coal deposit within the relevant mining concession.
The holder of a special permit for the industrial development of a coal deposit within the relevant mining concession may engage specialized organizations to perform work on the extraction of gas (methane) from coal deposits, provided that they have the relevant permits.
It is not allowed to operate coal deposits with an elevated level of gas (methane) concentration without taking the necessary ventilation or degassing measures.
The development of new coal deposits is not allowed without carrying out the necessary degassing measures in the presence of gas-saturated coal seams.
Until the conclusion of a production sharing agreement (re-issuance of a special permit by the Cabinet of Ministers of Ukraine), a special permit for geological exploration and extraction of gas (methane) from coal deposits is granted by the State Service of Geology and Subsoil of Ukraine in agreement with the Ministry of Energy of Ukraine.
Within the boundaries of the area that does not coincide with the boundaries of the mining concession of operating mines, as well as for mines that are being prepared for operation, a special permit for geological study and extraction of gas (methane) from coal deposits is granted by the State Service of Geology and Subsoil of Ukraine without approval from the Ministry of Energy of Ukraine.
A special permit for geological exploration and extraction of gas (methane) from coal deposits whose industrial development has not been carried out regardless of their further use, as well as for depleted coal deposits, is granted for a period of no more than 20 years.
Within the framework of the regulation of production sharing agreements, a special permit for the geological study and development of coal gas (methane) deposits increases the validity period by more than 20 years (up to 50 years).
Extraction of gas (methane) from coal deposits within the mining concessions of operating mining enterprises is carried out under a separate special permit issued by the State Service for Geology and Mineral Resources of Ukraine:
-to the holder of a special permit for the industrial development of a coal deposit (subsoil user) within the relevant mining concession. This special permit is an integral part of the main special permit for the industrial development of a coal deposit (subsoil user) within the relevant mining concession and is issued for the term of the main special permit;
-to another applicant business entity within the mining concessions of operating mines only with the written consent of the subsoil user.
In the event that another business entity is granted a special permit for geological exploration and extraction of gas (methane) from coal deposits within the relevant mining concession, the subsoil user and such business entity shall enter into a civil law agreement on coordination of economic activities.
The technical conditions determined by the subsoil user in accordance with part five of this article are essential conditions of such an agreement. The agreement is subject to state registration by the State Service for Geology and Subsoil Affairs no later than two weeks from the date of its submission.
Registration of land allotments for the placement of equipment for the purpose of drilling wells for the extraction of gas (methane) from coal deposits is carried out according to a simplified procedure.
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