Piñon Midstream LLC, Houston, has received approval from the US Environmental Protection Agency (EPA) for its monitoring, reporting, and verification (MRV) plan for carbon dioxide sequestration in its two acid gas injection (AGI) wells at the company’s Dark Horse gas treatment and carbon capture plant in the Delaware basin in Lea County, NM.
Dark Horse is the largest AGI system currently permitted and operating in the state. Both of Piñon’s AGI wells—Independence AGI #1 and Independence AGI #2—are Devonian wells, reaching depths of 18,000 ft (3.4 miles) below the surface into rock formations located several thousand feet below water aquifers and existing Delaware basin oil and natural gas producing formations.
The two AGI wells are permitted for a combined 20 MMcfd of CO2 and H2S injection, which equates to 250,000 tonnes of CO2 and 110,000 tonnes of H2S annually based on current gas compositions.
Piñon’s approved MRV plan, which became effective June 15, 2024, provides a full description of technical procedures for sequestration, monitoring, and verification that have been put in place at the plant to ensure permanent sequestration, the company said. The approved MRV plan also satisfies a major requirement for Piñon’s eligibility to receive 45Q and enhanced tax credits in accordance with the Inflation Reduction Act of 2022.
The company now holds the MRV plan approval from the EPA and an NSR air permit from the State of New Mexico, and recently completed capacity expansions at the plant (OGJ Online, June 4, 2024).
