Shanxi tightens coalbed methane mining oversight

The Shanxi provincial government is toughening up in its management of coalbed methane mining rights to ensure licenses go to capable parties, in order to boost exploration and output.

Coalbed methane (CBM) is a form of natural gas extracted from coal beds.

The exploration rights for new blocks under contracts are valid for three years and three months, with the final three months incorporating an assessment period. If the enterprises fail to invest sufficient capital into the exploration, as stipulated in the contracts, their registered coalbed methane blocks will be reduced proportionally.