Texas Pacific Land Corp. (TPL) and Milestone Carbon LLC announced June 1 that a letter of intent (LOI) has been executed between the companies to evaluate geological and geophysical characteristics of certain acreage owned by TPL for the purposes of sequestering captured carbon dioxide (CO2).
Milestone Carbon is a leading carbon capture company that offers turnkey solutions for the permanent geological sequestration of CO2 for significant industrial emitters. The company will perform the evaluation, which will cover approximately 21,000 acres in the Permian Basin, and if successful would potentially develop the acreage in connection with a carbon capture and sequestration (CCS) project.
“CCS is a proven technology that can provide actionable means to achieve a low-carbon future,” said Milestone Carbon President and CEO Gabriel Rio. “Milestone Carbon was created to develop, own and operate environmental infrastructure that will enable industry to meaningfully decarbonize. Such infrastructure will be crucial in the fight against climate change and will support the industries that provide the energy and materials our economy depends on. TPL’s vast land holdings and deep industry experience make them an ideal partner for Milestone Carbon. We are thrilled to join with them to develop CCS infrastructure in the Permian Basin.”
The announcement further highlights TPL’s strong commitment to environmental, social and governance (ESG) initiatives.
“We have long been responsible stewards of our expansive land holdings, and that longstanding focus has served as a good foundation for enhancing our commitment to sustainability and the environment,” said Tyler Glover, CEO of TPL. “Carbon capture can be a key tool in the quest for net-zero, and TPL’s expansive surface footprint could potentially serve as a key resource to permanently sequester carbon. We are constantly looking for ways to leverage the unique features of our surface assets, and carbon capture is an exciting opportunity that could serve a dual purpose of creating value for our shareholders while also benefitting the environment.”
Sustainalytics, a leading provider of ESG research, ratings and data to institutional investors and companies, recently provided its risk rating for TPL. Out of all entities in the oil and gas producers’ industry, TPL ranked No. 1 in the United States and No. 2 globally. Among nearly 15,000 companies globally, TPL was ranked in the top 5th percentile.
“TPL is proud of its ESG efforts and to be recognized by Sustainalytics as a top ESG performer, and we will continue to endeavor to build upon our successes to date,” Glover said.
TPL is one of the largest landowners in the state of Texas with approximately 880,000 acres of land in West Texas, with the majority of its ownership concentrated in the Permian Basin. TPL is not an oil and gas producer, but its surface and royalty ownership allow revenue generation through the entire value chain of oil and gas development, including through fixed fee payments for use of its land, revenue for sales of materials (caliche) used in the construction of infrastructure, providing sourced water and treated produced water, revenue from our oil and gas royalty interests, and revenues related to saltwater disposal on its land. TPL also generates revenue from pipeline, power line and utility easements, commercial leases, and seismic and temporary permits related to a variety of land uses including midstream infrastructure projects and hydrocarbon processing facilities.Tags: Carbon Capture System (CCS), carbon sequestration, Texas Pacific Land Corp.