In Washington County, Colorado, state lease lots are typically leased by agricultural producers, hunters, and some oil and gas mining companies. One of the specific parcels leased by the company is of interest to landowners whose land is in the footprint of a planned carbon capture and storage project. The project will ultimately store 175,000 tonnes of carbon dioxide per year emitted by Yuma Ethanol, LLC.

Still in the exploration phase, if the site is deemed suitable for the project, Carbon America will build an underground pipeline about 10 miles to the storage site. It attracts local attention for a number of reasons, the most important of which is that it is not a storage site for state land.

Carbon America’s external relations manager, John Brown, says the process of determining site suitability is a long project. Basically, a geological sampling well is drilled using a cement and steel casing to a final depth he exceeds 4,000 feet. Water samples, soil samples, core samples of rock formations, and wire line log data characterizing various layers of subterranean formations are all used to create 3D images and to verify site suitability.

The proposed site is located within the DJ Basin, which has a long history of oil and gas production. Along with its production, Carbon America has conducted a number of existing seismic studies that predict that the site, located near County Route 30, would be suitable for the project. The actual injection zone will be within the sandstone formation where CO2 can bind to the porous stone and eventually to the sandstone. He said the presence of cap rock and ceiling layers, both composed of very hard rock, are used to trap the CO2.

Sampling well drilling and data collection is expected to be completed on site in less than a month, with the maximum amount of time (approximately six months) spent analyzing the data. If the site is verified as good, Carbon America will need to secure injection leases from local, state, and federal agencies, as well as easements, permits, and licenses to build the pipeline. At the time of writing, the drilling rig is being transported to the site from another site in Weld County. Brown said he expects the rig to be assembled and operational early the week of April 24.

As for the state’s rental lots, once construction begins on the site, Brown said they will be available for grazing if the layered lease is in effect.

“We have a small footprint of less than an acre of injection well facilities with fencing and other protection mechanisms for wildlife and cattle grazing,” he said. “We’re years from a permitted and approved project, so there’s going to be a lot of discussion. Nothing that stands out. It’s been at least a year since construction.”

If the injection well were built, it would be about 8 feet high, too small to be seen from the nearby CR 30.

Brown said there are federal tax credits for CO2 capture and storage. Carbon America plans to buy his CO2 from ethanol plants, with compensation coming in the form of tax credits. According to the purchase agreement with the ethanol plant, they share a portion of the tax credits, and those credits go toward compensating the landowner (in this case, the State Land Commission) that houses the pipeline or storage site. is also used. The incentive program has been in place for 12 years, he said, so it will capture at least through that period. Once the injection work is finished, the company will have to monitor the storage location for more than 10 years to ensure that the CO2 remains in the intended storage location. There is a site closure protocol by the EPA that must be followed when operations are terminated. According to him, this type of reservoir well is a Class VI well, whose designation imposes the most stringent requirements from the Environmental Protection Agency of any type of well. All this is in addition to the millions of insurances and warranties that are part of the permitting process.

If the pipeline construction process begins, Brown said he intends to hire local contractors wherever possible.

Author’s note: Next week, I will share details about the lease and a second article on the state’s Department of Natural Resources’ newly approved carbon storage policy.