re: Westlake Area: Entergy, Crescent Midstream collaborating on large carbon capture project

What does $2 per ton per acre equate to for a carbon capture project?

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I literally sat in a meeting with a DOE PI (principle investigator). Just parroting what she said.

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May be right. I saw they were getting around 65B from the infrastructure bill. They might have that much if you look at all the programs going back to the early 2000s.

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What does $2 per ton per acre equate to for a carbon capture project?

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I assume you're asking because you or someone you know has been approached to lease their pore space for a project.

There's loads of variables to figure out what that would mean in pure dollars. If the company negotiating the agreement is smart, there's some sort of pro-ration language built in. So far example, to keep it simple and stupid:

Proposed storage complex size: 100 acres
You tract: 50 acres

Your per ton payment of what is injected would actually be $1 per gross ton, as your net interest in the complex is 50 out of 100 acres.

Now...these storage complexes for the big projects are much larger than 100 acres, and seismic data will determine how the CO2 SHOULD migrate over the years, hence how big and what shape your proposed storage complex should be.

Again, no Class VI permits have been approved yet in Louisiana or Texas. In fact, maybe less than 5 across the whole country? Each state is likely figuring out how to legislate and govern how the property rights equate to what agreements are needed and how royalties are paid to the pore space owner. Someone is going to get sued over this, I'm guessing pretty soon during the onset of injection and payments for one of the first few large injection sites, so we should have some case law eventually established.

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It's almost always a neighbor who isn't getting any money.

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In the case of Class VI, it's a requirement that seismic is shot every five years to monitor the migration of the plume. So if it goes outside the proposed storage complex, then the operators themselves should eventually find out.

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The climate change nuts are happy because they think they are saving the environment.

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They really aren't though. They are fighting like hell next to the staunch rednecks in BFE Louisiana against the CCS projects.

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Are these companies sitting here in the room with us right now?

For real though, zero companies have a Class 6 permit in LA right now. Maybe this article is just worded weird.

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None approved, but several current permits filed with LA DNR waiting on final approval. Several have already received approval for their Class Vs to drill strat wells for the project. Air Products even has info published on one of their strat wells in Maurepas.

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Entergy/Crescent could always purchase a Class VI in the region once approved. Currently, Gulf Coast Sequestration has two projects in Calcasieu with filed permit applications, and Hackberry Carbon Sequestration and Venture Global CCSU currently have one each in Cameron.

Now the way the article is written, guess I was under the impression that the site for the CCSU project was on property owned by Entergy. If that's the case, then maybe it's one of the Gulf Coast Sequestration (which is the Matilda Gray Stream family business venture) permit sites in Calcasieu??

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Carbon capture is a wealth transfer through tax incentives

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The the sell of carbon credits by large land owners. Literally made a whole commodity market out of thin air and they’re all getting richer because of it.

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Could the CO2 compress and form into a solid under pressure?

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That's what I'm told it would do.

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Could it leak out or displace other layers in the strata.

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Maybe. In the Permian in areas where you have mineral leases/operating rights limited to certain depths, there's been battles between operators that one company's EOR operations of either CO2 or produced water is flooding out another's potential production.

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Could it also escape into the water table turning water wells in the region in to soda water?

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Maybe. If the casing is bad, and if it seeps that far up. In Louisiana, the water table is pretty damn shallow compared to some of these zones like the Miocene and such. Look at it this way, you won't have to pay the stupid prices for Topo Chico.

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These are questions from the OT science department.

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Oh shite, disregard all the above, then. Way above my pay grade to answer to that department.