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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

State Lands Commission Blocks Southern California LNG Terminal

LCG, April 12, 2007--The California State Lands Commission blocked the development of a liquefied natural gas (LNG) terminal off the coast of Southern California earlier this week with a 2-1 vote to not approve a lease permit required for the project.

A spokesperson for the project sponsor, Australia's BHP Billiton LNG International Inc., stated that the terminal would supply an amount equal to ten to fifteen percent of California's daily gas requirements. The supplemental supply of natural gas would be received by tankers from overseas and would improve reliability and potentially lower gas prices. BHP was uncertain as to its next step, which could include pursuing legal action.

The proposed, $800 million facility would be located about fourteen miles off shore from Malibu and would have a capacity of 800 MMcf/day. The LNG would be received from tankers and vaporized at the terminal. The natural gas would be transported via two, 24-inch diameter pipelines from the terminal and delivered into the gas transmission system of Southern California Gas Co.

The lease considered by the Lands Commission would have granted BHP the right to build and operate the pipelines. Commission Chairman John Garamendi voted not to award the lease permit because "serious questions remain about the project's safety and its potential impact on the environment."

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