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Federal officials reject permit for Wyoming project that uses bacteria to produce methane
GILLETTE, Wyo. (AP) ' Federal land managers have rejected an application by a Colorado company to use bacteria to produce methane from northeast Wyoming coal beds.
Luca Technologies Inc. wants to use a process called methane farming in which water and chemicals are injected into a coal seam, activating microbes that live in the coal. The microbes eat the coal and produce methane.
The Bureau of Land Management turned down the permit for the Golden, Colo.-based company after it refused to pay an additional $40,000 for the cost of processing its application, on top of $40,000 it paid previously.
Luca executives said they refused the additional payment because it appeared the BLM would never approve the permit. Company CEO Bob Cavnar accused the federal agency of favoring the coal mining industry, which has expressed concerns about methane farming.
BLM spokeswoman Lesley Elser said the original amount had been exhausted and that the company has "to pay into the cost recovery account for the fees for permitting and they didn't pay the account, so it was overdrawn."
The company also said the Bureau of Land Management told the company in early May that it would require a well monitoring program that would cost up to $30 million.
"They surprised us with no warning," Cavnar told the Gillette News-Record (http://bit.ly/KoN12P ). "They were going to implement a huge monitoring program that was going to cost $30 million knowing full well we couldn't do that because it was going to exceed the value of the project."
The BLM has threatened to prosecute Luca for trespassing if it continued the work.
Cavnar said the company will stop work but disagrees with the decision and may sue.
"We believe the BLM has violated private property rights and negotiated in bad faith," he said.
Information from: The Gillette (Wyo.) News Record, http://www.gillettenewsrecord.com