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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

Allegheny takes California to Court over Power Contracts

LCG, February 27, 2003-Yesterday, Allegheny Energy Inc. announced it was seeking as much as $10 billion from California.

Allegheny alleges that the California Department of Water Resources is unlawfully seeking to rewrite its power contract with the company and wants $6 billion to $8 billion for breach of contract and fraud.

A subsidiary of Allegheny has a $4.4 billion contract with CDWR; CDWR has tried to nullify or rewrite this contract, one among $43 billion in contracts it wrote during California's energy crisis of 2000/2001.

Earlier this year the CDWR filed with Sacramento Superior Court against Allegheny, alleging the company had breached contract by transferring the contract to a new subsidiary and noting the company's financial deterioration.

Meanwhile Allegheny has made new deals with lenders and has asserted California has falsely discredited its name and scared off investors.

Allegheny filed suit with the California Board of Control on Friday.

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