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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

Dominion, Duke Energy, Piedmont Natural Gas and AGL Resources Form Joint Venture to Own New Atlantic Coast Pipeline

LCG, September 3, 2014-Dominion, Duke Energy, Piedmont Natural Gas and AGL Resources announced yesterday a new partnership with plans to construct, own and operate a 550-mile natural gas pipeline to deliver gas supplies via a new, direct path from the growing Marcellus and Utica shale basins in West Virginia, Pennsylvania and Ohio to the growing demands in North Carolina and Virginia. The estimated cost of the project is $4.5 billion to $5 billion. The Atlantic Coast Pipeline could be operational by late 2018, pending regulatory approval.

The partnership, called Atlantic Coast Pipeline LLC, will own the pipeline initially proposed by Dominion as the Southeast Reliability Project. The planned pipeline, with a 1.5 Bcf/day design capacity, is targeted in part to meet the needs identified in requests for proposals last April by Duke Energy and Piedmont, and in June by Virginia Power Services Energy.

The new joint venture ownership stakes are divided as follows: Dominion, 45 percent; Duke Energy, 40 percent; Piedmont, 10 percent; and AGL Resources, 5 percent. Subsidiaries and affiliates of all four joint venture partners plan to be customers of the pipeline under 20-year contracts, pending regulatory approvals. PSNC Energy also plans to be a customer of the pipeline under a 20-year contract, pending regulatory approvals.

The proposed Atlantic Coast Pipeline will extend from Harrison County, West Virginia southeast through Virginia, with an extension to Chesapeake, Virginia, and then south through central North Carolina to Robeson County. The project design includes 42-inch diameter pipe in West Virginia and Virginia, reducing to 36 inches in diameter in North Carolina. Three compressor stations are included: one at the beginning of the pipeline in West Virginia, one in central Virginia (Buckingham County), and one near the Virginia-North Carolina state line. The range of normal operating pressure on the pipeline will be from 750 to 1,440 psig, the Maximum Allowable Operating Pressure (MAOP) of the pipeline.

Dominion will build and operate the Atlantic Coast Pipeline on behalf of the venture. Dominion now operates nearly 8,000 miles of interstate pipeline in six states.

Dominion plans to submit a pre-filing request with the Federal Energy Regulatory Commission (FERC) this fall on behalf of Atlantic Coast Pipeline and to file its FERC application next summer. Dominion?s schedule includes receiving the FERC Certificate of Public Convenience and Necessity (CPCN) in the summer of 2016, with project construction commencing shortly thereafter.

The chief executives of the four sponsoring companies - Dominion, Duke Energy, Piedmont Natural Gas and AGL Resources - issued the following joint statement, "Natural gas is increasingly important for advanced electricity generation, contributing to significantly lower greenhouse gas and other emissions. The project will also provide more reliable access to new sources of natural gas, keeping consumers' energy costs down ? even during the coldest and hottest weather."
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