Petroleum

The Powder River Basin also contains major deposits of petroleum. The oil and gas are produced from rocks ranging from Pennsylvanian to Tertiary, but most comes from sandstones in the thick section of Cretaceous rocks.

[edit] Coalbed methane

Recent controversy surrounds the extensive coalbed methane extraction in the region. In the last decade, nearly 7000 such wells have been drilled. An extensive network of gas pipeplines connecting these wells has been built, along with a series of pressurization plants, as well as power lines to provide electricity to operate the system. In addition, thousands of miles of new access roads have been constructed.

Extracting the gas requires water to be pumped to the surface in order to release the gas trapped in the coal seam. While some of the water is successfully utilized in agriculture production such as livestock water and crop irrigation, some waters are naturally high in salinity. There has been controversy on how to best manage these saline waters.

[edit] Uranium

The region also contains major deposits of uranium, contained in sandstones. (See Uranium mining in Wyoming). The Wasatch Formation (Eocene) contains the uranium ore "roll front" type deposits found in the Pumpkin Buttes District. Cameco Corporation subsidiary Power Resources Inc. operates uranium mines in the basin.

[edit] Transportation

In spring 2005, coal extracted from the mines would retail at the mines for around $5 a ton. However, the power stations and plants of the Eastern United States then paid in excess of $30 ton - the difference made up by the cost of transportation.[6] (In October 2008, the mine-mouth price of Powder River Basin coal is closer to $15 per ton.[7])

Due to the volumes and resultant cash flow from the coal that is accessible, there is a joint railway line owned by the BNSF Railway and the Union Pacific Railroad which runs the length of the southern section of the PRB. A third railroad, the Dakota, Minnesota and Eastern Railroad, has faced strong resistance from an unusual array of parties for its attempts to extend its rail line into the coal mining area - more so since its agreed purchase by the Canadian Pacific Railway.[8]