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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

California Capsule: Grand Jury May Probe Power Producers

LCG, June 14, 2001California Attorney General Bill Lockyer said yesterday hi will ask the Sacramento County Grand Jury to join his investigation into possible criminal actions by electric power companies that have led to high wholesale power prices.

Lockyer, who said the other day he would like to personally throw the chairman of one of the largest U.S. energy companies into a jail cell with a sex-starved "tattooed dude," now says he has reached no conclusions about possible criminal acts, but would like the assistance of grand jury testimony.

"I just want to make sure that we investigate every possibility," Lockyer said. "Some people conclude that we have no evidence. That's not what I'm saying I'm saying we're in the middle of evaluating evidence."

Lockyer said he would take the investigation to the grand jury after it convenes for the new fiscal year on July 1. He did not know how long the grand jury might deliberate on the matter. Criminal violations could involve California's racketeering, unfair business practices, fraud and antitrust statutes, he said.

But apparently nothing that would warrant throwing a respected businessman in the drunk tank.

Judge Orders Power Contract Disclosures
San Diego Superior Court Judge Linda Quinn yesterday ordered California to disclose by Friday edited versions of the contracts for long-term power purchases entered into by the state Department of Water Resources.

Judge Quinn also set another hearing for June 27 to decide whether the contracts should be disclosed in full and whether short-term power purchase deals should be released. Gov. Gray Davis has opposed releasing any details of any contracts, but is expected to vigorously oppose releasing details of the water agency's forays into the volatile wholesale power spot market.

On Tuesday, the governor backed down on the long-term contracts, saying he was willing to make public the details of $42.8 billion in deals with 18 suppliers if the court released the state from confidentiality requirements in the contracts.

Judge Quinn's order was in response to a lawsuit brought be state news organizations challenging the non-disclosure of public records involving the expenditure of billions of dollars in taxpayer money.

Power Producers Not 'Guilty' Expert Says
Severin Borenstein, an economist who heads the University of California Energy Institute, told a U.S. Senate panel yesterday that independent power generators have acted legally in raising rates.

In testimony before the Senate Governmental Affairs Committee, Borenstein said "It is not in itself illegal so long as the companies do not act in concert," adding that given the circumstances, "It would be surprising if generators didn't exercise market power."

Committee Chairman Joe Lieberman, D-Conn., said he was a fan of free markets, "But we're looking at an energy market in California and in the West that is not free. The fact of the matter is that the California market is not even functional."

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