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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

Wyoming Coal-bed Methane Leases Ruled Illegal

LCG, April 30, 2002--In response to allegations by environmental groups, a panel from the Department of the Interior ruled that leases on Wyoming's Powder River Basin were issued illegally.

Prior to the ruling, the Bureau of Land Management (BLM) had allowed the issuance of leases for 2,500 acres, but the panel found that the BLM had used outdated environmental studies in assessing the land and therefore issued the leases illegally.

The decision has worried parties considering coal-bed development, namely in western states where public land might be used.

This reversal comes as a snub to President Bush's energy plans. Bush has encouraged exploration throughout the country and specifically coal-bed mining in the Rockies in an attempt to minimize U.S. foreign fuel dependency.

Environmental groups Wyoming Outdoor Council and Powder River Basin Resource Council instigated the lease reevaluation. Wyoming BLM is still considering its response to the decision.

Coal-bed methane provides a new source for natural gas. The method involves pumping groundwater to alleviate pressure and release methane gas from coal seams. Coal-bed mining in the Powder River Basin has yielded about 10,000 wells so far, with a projected 40,000 to come into service over a few years' time.

The Federal government leases public land to allow industry to develop mineral resources. The Bureau of Land Management handles 700 million acres of mineral land.

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