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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

Enron Sees India Regulator's Ruling as Legal Wedge

LCG, Sept. 27, 2001--Earlier this month, the relatively new Indian power regulator, the Maharashtra Electricity Regulatory Commission, ruled that is does not have jurisdiction over power purchase agreements entered into before the commission was set up in 1999.

Now, Enron Corp., which is involved in a bitter dispute with the Maharashtra State Electricity Board over agreements entered into in 1993 and amended in 1995, sees that September 14 decision as a legal wedge that could keep the regulatory commission from interfering in the dispute between the MSEB and Enron's Dabhol Power Co.

"The recent reports that MERC may be taking different positions on questions relating to other independent power producers are troubling and we're hoping for a just and equitable resolution," Enron India spokesman John Ambler said.

The state of Maharashtra high court in Bombay was scheduled today to talk to the three commissioners of the regulatory commission to determine whether they were biased against Enron. One of the commissioners, Jayant Deo, has made several statement indicating bias, according to lawyers for Dabhol, and in 1994 -- five years before the commission was formed -- flayed the Dabhol power purchase agreement as "patently illegal."

"We're very interested in the court's continuing consideration of questions relating to potential bias by the MERC commissioners," Ambler said. "The current disputes that are before the court are particularly significant because they'll demonstrate our ability to rely on the Indian judicial system for dispute resolution."

Enron, which owns 65 percent of Dabhol, along with General Electric Co. and Bechtel Enterprises, which each have a 10 percent stake and non-Indian lenders to the 2,184 megawatt project, want to get the matter before the International Court of Arbitration in London, which is where the contract says disputes between Dabhol and the MSEB are to be resolved.

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