GILLETTE - To date, producers have tapped merely 5 percent of Wyoming's $140 billion coal-bed methane resource in the Powder River Basin. Yet the remaining resource may be lost, and hundreds of coal-bed methane workers are threatened with losing their jobs.

That was the doomsday scenario that coal-bed methane companies laid out for about 200 workers Thursday evening: Their jobs are at risk if the Environmental Quality Council adopts - and Gov. Dave Freudenthal approves - proposed new rules regarding water produced from coal-bed methane wells.

Yates Petroleum, Devon Energy and Marathon Oil rallied coal-bed methane workers, landowners and businessmen during a meeting here Thursday evening, urging them to submit comments to the EQC opposing the rule changes before the Monday 5 p.m. deadline.

"I don't think this petition is about protecting the environment," Jim Barber of Yates Petroleum told the crowd. "I think it's about getting CBM activities stopped."

The reality of that actually happening, however, may be in serious question. Gov. Dave Freudenthal has repeatedly indicated that he would not sign off on such a rule change, instead hinting that a statutory fix may be more amicable.

Even those pushing for the rule change - the Powder River Basin Resource Council, along with about a dozen individual ranchers - admit that the rulemaking process is an imperfect means to their desired outcome. It would not result in a blanket, unswerving restriction against water discharges from mineral operations, or even coal-bed methane activity in particular.

Petitioners have argued that ultimately what they want is for the Department of Environmental Quality to have the ability to limit some volumes of coal-bed methane water in cases where it likely will flood low-lying grazing pastures, referring to cases where prime grazing pastures have been converted to year-round wetlands. Water is a by-product of coal-bed methane production.

However, on Thursday night, Barber and others in the industry focused on what might be the consequences if an unswerving version of the current proposal before the Environmental Quality Council becomes the rule.

Royalty payments to landowners, state and federal coffers - well in excess of $1.5 billion annually - would halt, according to Barber. Affordable housing would no longer be a problem in Gillette because of massive layoffs, he suggested, because meeting new water discharge requirements would make gas plays elsewhere more profitable in comparison.

"Gas production occurs elsewhere," Barber said.

Barber's main piece of evidence was written comments submitted to the council by John Wagner, administrator of DEQ's Water Quality Division - the person who ultimately stamps coal-bed methane water discharge permits.

In his written comments to the EQC Jan. 5, Wagner referenced an item in the proposed rules and testified, "This language would have the effect of prohibiting most, if not all coal-bed methane discharges to the surface."

It's a stance he backed up on Friday.

"I don't see how any applicant could submit an application to us that could meet this rule," Wagner told the Casper Star-Tribune Friday.

Given that same scenario Thursday night, industry workers brooded over drinks at the Boss Lodge Restaurant & Business Center, where the meeting took place.

"The financial ramifications of ceasing CBM would be like saying, 'No more coal.' It's that huge, because it affects people throughout the nation," said Bill Kern, who supplies construction materials in the Powder River Basin.

Earl Shaw, who works as a consultant on water projects throughout the Powder River Basin, said the only complaint he has heard from landowners is that they don't have enough coal-bed methane water.

"If this passes, I don't think Oklahoma and Texas would want all of us back," Shaw said.

Rob League, an employee of Oedekoven Excavation, came to the meeting as a newcomer, having arrived in Gillette just three weeks ago. League said he was impressed by the abundance of energy resources in the Powder River Basin and by the opportunity presented by coal-bed methane water during a time of drought.

"I can't see why everybody can't be a winner here," League said. "Why not use the water to rejuvenate the landscape? It'd be a shame to see all of this water go to waste."

Energy reporter Dustin Bleizeffer can be reached at (307) 682-3388 or dustin.bleizeffer@casperstartribune.net.