Underground Coal Gasification and Unconventional Gas Research, Development and Demonstration Act

(Measure passed Senate, amended)

Underground Coal Gasification and Unconventional Gas Research, Development, and Demonstration Act - Directs the Secretary of Energy to prepare a comprehensive program management plan for research, development, and demonstration activities for underground coal gasification and unconventional natural gas production. Requires the Secretary to transmit such plan to Congress not later than January 30, 1981.

Directs the Secretary to establish research and development activities for underground coal gasification and unconventional natural gas production. Requires the Secretary to solicit proposals and evaluate new or improved technology which would contribute to such production.

Directs the Secretary to solicit proposals for the design of underground coal gasification and enhanced gas recovery facilities to demonstrate the technical and economic feasibility of producing synthetic and unconventional natural gas. Authorizes the Secretary to enter into agreements to construct: (1) a field demonstration facility with a minimum production capacity of 15,000,000 standard cubic feet per day of synthetic natural gas from underground coal gasification by 1987; (2) a field demonstration facility with a significant gas production on a continuous basis which provides system performance and reliability data to determine the commercial viability of the underground coal gasification technology utilized; (3) no more than six field tests of increased gas production from unconventional gas formations through the use of advanced fracturing technology; (4) no more than two field tests for the demonstration of unconventional natural gas production from geopressure reservoirs; and (5) no more than three coordinated field demonstrations of unconventional natural gas production from coal seams. Prohibits the expenditure of any funds for such facilities until the Secretary submits to the appropriate Congressional committees the plans and justification for any such facility and waits 30 legislative days.

Directs the Secretary to prepare a comprehensive commericalization plan which shall include: (1) an analysis of the existing industrial infrastructure and identification of modifications in government policy necessary to establish a sufficient industrial infrastructure to meet national underground coal gasification and unconventional natural gas production goals; (2) an analysis of any legal and institutional barriers, including an analysis of the legal ownership of free methane in coal seams and an analysis of the effect of the inclusion of underground coal gasification in land use and coal activity planning; and (3) an assessment of the government actions needed to help eliminate economic uncertainties through financial incentives. Directs each respondent to include in its design proposal: (1) a plan leading to a full-scale, commercial facility based on the technology used in the proposed demonstration system; and (2) a commercialization strategy which includes plans for future participation toward meeting the national goal. Directs the Secretary to submit such comprehensive commercialization plan to Congress within two years after the enactment of this Act.

Requires the Secretary to submit to Congress, as a separate part of the annual report submitted under the Department of Energy Organization Act, an annual report of the activities undertaken pursuant to this Act. Requires that such report include: (1) modifications to the comprehensive plans and programs for implementing this Act; (2) an evaluation of the state of underground coal gasification and unconventional natural gas recovery research and development in the United States; (3) a description of the contracts and grants made under this Act; (4) an analysis of the progress made in commercializing underground coal gasification and unconventional natural gas recovery technology; and (5) suggestions for improvements in underground coal gasification and unconventional natural gas recovery research and development, including recommendations for legislation.

Authorizes appropriations for fiscal years 1981 and 1982 to carry out the purposes of this Act.