Research into Enhanced Oil and Gas Recovery Carbon Dioxide (HB1)

Under the authority established by House Bill 1 (2007), Section 57, $5,000,000 was appropriated to the Governor's Office of Energy Policy (GOEP) for the purpose of entering into a memorandum of agreement with the Kentucky Geological Survey at the lJ1iversity of Kentucky to conduct research, either itself or in collaboration or under contract with other entities, to quantify the potential for enhanced oil and gas recovery and enhanced coalbed methane recovery using carbon dioxide. The research shall include the drilling of deep wells in both coal fields (Illinois and Appalachian) in Kentucky, and performing the analysis necessary to estimate the potential for enhanced oil and gas recovery, enhanced coalbed methane recovery, or permanent storage of sequestration of carbon dioxide. At least one of the wells will test the Devonian shale for enhanced gas recovery and sequestration potential. The Kentucky Geological Survey is encouraged to use these funds to match available federal and private funds to the extent possible. The GOEP shall report to the Legislative Research Commission by December 1, 2007, regarding the status of the research project with this appropriation. Given this deadline, the Kentucky Geological Survey will submit to GOEP a status report on or before November 23, 2007 describing all activities accomplished and under way with regards to this program. Detailed Work Program The research will be organized into three research projects: (1)-Western Kentucky Sequestration, (2)-Eastern Kentucky Sequestration, and (3)-Enhanced Oil and Gas Recovery. The western and eastern sequestration projects will involve research for permanent sequestration potential in deep saline reservoirs. The enhanced oil and gas recovery projects will include a Devonian Shale gas project in eastern Kentucky, and at least one oil project. These projects will likely have different industry partners who will share in the costs, planning, and execution of the work. The projects will involve four phases: (1)- scoping for industry partners and opportunities, (2)-formation of industry consortia and planning, (3)-execution of the research, and (4)-reporting of the findings. Progress will be reported quarterly to GOEP, with the first report due on Nov. 23, 2007. Subsequent reports will be due at the end of December, March, June and September.