Western Regional Air Partnership Meeting April 5, 2006

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Southwest CO 2 Sequestration Partnership: Field Demonstrations of CO 2 Sequestration Exploring Carbon Science and Technology Options Western Regional Air Partnership Meeting April 5, 2006 Brian J. McPherson New Mexico Institute of Mining and Technology

Premise: Enhanced Greenhouse Effect Global Emission of Carbon as CO2 1.0 0.8 0.6 0.4 0.2 0.0-0.2-0.4-0.6-0.8 Six warmest years of global record all after 1990. 7000 6000 5000 4000 3000 2000 1000 Global Carbon Global Temperature Anomaly ( o C) (million metric tons) -1.0 1850 1900 Years 1950 2000

The Southwest Carbon Sequestration Partnership In all partner states: major universities geologic survey other state agencies lead organization: NMT as well as Western Governors Association five major utilities seven energy companies three federal agencies the Navajo Nation many other critical partners

Southwest Carbon Project Objectives Phase I: Characterize SW region carbon sources and sinks Identify the best options by linking carbon sources to carbon sinks Figure compliments of Rick Allis, UGS Phase II: Demonstrate these options with field tests

Southwest Carbon Project Objectives Note: the minimum GHG reduction goals for the region would be met if we simply supplant the natural CO 2 in the Colorado-to-Texas pipelines with anthropogenic CO 2! Figure compliments of Rick Allis, UGS

Southwest Carbon Project Themes Geologic systems - Potentially large volume Terrestrial systems - Rapid implementation Mineralization - still not mature technology - potentially very large volume - safety / risks known - expensive

Best Demonstration Options 1,2 3 4 Four of over 100 geologic options were selected as the most promising opportunities for evaluation: (1) combined enhanced oil recovery and (2) deep brine reservoir sequestration testing, Paradox Basin, Utah September, 2006 150,000 tons/year Southwest Regional Partnership on Carbon Sequestration

Utah Demonstration Summary Location Type of Test Test Details Estimated Capacity & Value Added Benefit Aneth Field, Paradox basin, near Bluff, UT - Deep Saline - EOR with Sequestration Up to 150,000 (?) tons/year for 3+ years Also: many old and/or pluggedabandoned wells suggest special monitoring needs - An estimate of minimum capacity of test unit: 100,000,000 tons - Value added Benefit: enhanced oil recovery Southwest Regional Partnership on Carbon Sequestration - Expected increase in oil recovery: minimum additional 15,000 BOPD

Best Demonstration Options 1,2 3 July, 2007 75,000 tons/year 4 Southwest Regional Partnership on Carbon Sequestration Four of over 100 geologic options were selected as the most promising opportunities for evaluation: (3) combined enhanced coalbed methane production and sequestration testing, San Juan Basin, NM

New Mexico Demonstration Summary Location Type of Test Test Details Estimated Capacity & Value Added Benefit San Juan basin Coal Fairway, near Navajo City, NM Combined ECBM testing and terrestrial sequestration evaluation Geologic: Est. 75,000 (?) tons per year for 1 year - An estimate of minimum capacity of test unit: 100,000,000 tons Terrestrial: Desalinate water from ECBM test and use for riparian restoration - Value added Benefit: enhanced methane recovery - Value added Benefit: wetland restoration

Best Demonstration Options 1,2 3 4 Four of over 100 geologic options were selected as the most promising opportunities for evaluation: (4) combined enhanced oil recovery and sequestration testing, Permian Basin, TX March, 2007 160,000 tons/year Southwest Regional Partnership on Carbon Sequestration

Texas Demonstration Summary Location Type of Test Test Details Capacity SACROC- Claytonville Fields, Permian basin, TX Combined EOR with Sequestration Over 150,000 (?) tons per year for 2 years & Value Added Benefits - An estimate of minimum capacity of test unit: 100,000,000 tons - Value added Benefit: enhanced oil recovery -- Estimated additional oil recovery: unclear

Regional Pilot Full-Scale Characterization Demos Deployment? Concept: String of Pearls? Pilot demonstrations will test short-term strategy: sequester along pipelines

Schedule of Major Activities Test/Activity Location Start Date Detailed Project Plan Each Site Begun Permitting Process All sites Begun Tailored MMV Design All sites Begun Baseline Models* All sites Begun Risk Assessement All sites Begun Terrestrial - Regional Region January, 2006 Baseline MMV Paradox Basin, UT January, 2006 Baseline 3-D Seismic Permian Basin, TX January, 2006 Baseline 3-D Seismic Paradox Basin, UT March, 2006 Baseline MMV All other sites Spring, 2006 Deep Saline Paradox basin, UT Feb, 2007 EOR/Sequestration Paradox basin, UT Sept., 2006 EOR/Sequestration Permian basin, TX March, 2007 Terrestrial - Riparian San Juan basin, NM June, 2007 ECBM/Sequestration San Juan basin, NM Oct., 2007 Injection Schedule Jan 06 Sep 06 Jan 07 Feb 07 Mar 07 Oct 07 Jan 08 Jan 09 Utah EOR Utah Saline Texas EOR New Mexico ECBM

Content in this presentation was developed by the Southwest Regional Partnership, with specific contributions by: Brian McPherson, New Mexico Tech Rick Allis, Utah Geological Survey Dick Benson, Los Alamos National Laboratory Dave Borns, Sandia National Laboratories Joel Brown, USDA Julianna Fessenden, Los Alamos National Laboratory Mark Holtz, Texas BEG Steve Hook, New Mexico Tech Peter Kobos, Sandia National Laboratories Steve Malkewicz, Resolute Natural Resources Dave Curtiss, University of Utah Genevieve Young, Colorado Geological Survey and many others in the Southwest Partnership southwestcarbonpartnership.org