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EPA and Texas Railroad Commission Sign Memorandum of Agreement for Permitting Geologic Storage of Carbon Dioxide

LCG, April 29, 2025--Officials from the U.S. Environmental Protection Agency (EPA) and Texas Railroad Commission (RRC) signed a memorandum of agreement (MOA) today outlining the state’s plans to administer programs related to carbon storage wells, known as Class VI wells. The MOA signing is a required step in the RRC’s application to be granted authority to permit Class VI wells in the state of Texas. EPA is currently preparing a proposed approval of RRC’s primacy application.

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Calpine and ExxonMobil Sign CO2 Transportation and Storage Agreement for CCS Project in Texas

LCG, April 24, 2025--Exxon Mobil Corporation (ExxonMobil) announced yesterday an agreement with Calpine Corporation (Calpine) to transport and permanently store up to 2 million metric tons per annum (MTA) of CO2 from Calpine’s Baytown Energy Center, a natural gas-fired facility located near Houston, Texas. This is part of Calpine’s Baytown Carbon Capture and Storage (CCS) Project that is designed to add CCS for the facility’s CO2 emissions. The Calpine facility could then provide a 24/7 supply of low-carbon electricity to the Texas grid plus steam to nearby industrial facilities.

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Industry News

El Paso Will Test Killer Pipeline in New Mexico

LCG, March 12, 2001El Paso Energy Corp. said Friday its natural gas pipeline subsidiary would begin testing this week the durability of a pipeline that exploded near Carlsbad, N.M., last August killing all 12 members of two families who were camped near the spot where the line ruptured.

The South Mainline, a major link in El Paso Natural Gas Pipeline Co.'s tie to Southern California, was repaired following the explosion but has been limited in the amount of gas it has been allowed to carry. Federal restrictions reduce throughput on the line by 200 million cubic feet per day from its 1.1 billion cubic feet per day capacity.

Energy experts have cited the reduction as one reason for the jump in natural gas prices at the Southern California Border delivery point, and the high prices are in turn partly responsible for the high cost of electricity in California. Two hundred million cubic feet per day is enough gas to generate 1,000 megawatts of power.

Kim Wallace, a spokeswoman for El Paso Energy, said the two-day test would require cutting flow by another 300 million cubic feet per day. "Obviously there is high gas demand in California, and we want to do this in a way that minimizes the impact," she said.

Following the test, results will be submitted to the Office of Pipeline Safety, an arm of the U.S. Department of Transportation, which will determine whether the pipeline can be brought back to full capacity. "If OPS says no additional repairs are needed, then there isn't anything more that we know of that would be needed," Wallace said.

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