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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

Lease Extension with Navajo Nation for Four Corners Power Plant

LCG, March 10, 2011--The President of the Navajo Nation on Monday executed a 25-year lease extension with Arizona Public Service Co. (APS) for the Four Corners Power Plant, a 2,060-MW, coal-fired power plant located near Farmington, New Mexico. The existing lease expires in July 2016, and the extension will enable operations into 2041.

Four Corners Power Plant is co-owned by a number of energy companies, and APS is the plant operator. APS plans to purchase Southern California Edison's stake in the newer units 4 and 5 and then to install SCRs on these two units. APS would then retire the older, less efficient units, rather than investing in new SCRs. The total plant capacity would be reduced to 1,500 MW.

There remain a number of hurdles for APS to clear, including: negotiating a coal supply contract with BHP Billiton and receiving regulatory approval from the Arizona Corporation Commission (ACC), the California Public Utilities Commission (CPUC) and the Federal Energy Regulatory Commission (FERC).

The President of the Navajo Nation stated, "My priority is to protect over 700 Navajo people employed at both the Four Corners Power Plant and BHP Billiton, including their families who rely on a steady income....This is a step in the right direction, and it's a business decision we did not take lightly."







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