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Colorado Energy Organizations Launch Responsibly Sourced Natural Gas Partnership

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A Colorado natural gas producer, an infrastructure operator and local municipal utility have entered into a first-of-its-kind Responsibly Sourced Gas (RSG) pilot project with Project Canary.

The unique wellhead to burner-tip RSG pilot extends across the energy value chain — from production, transportation and marketing of RSG — for consumer and community use locally in Colorado. Project Canary is a Denver-based B-Corp. focused on providing continuous emissions monitoring data and technologies across the energy sector.

As part of the pilot project, Colorado Springs Utilities, a municipal utility in one of the state’s largest and fastest growing regions, will purchase certified RSG produced by Bayswater Exploration & Production, a Colorado-based oil and natural gas development company. The certified RSG will be gathered and processed by Rimrock Energy Partners, a provider of midstream services in the DJ Basin, before being delivered to Colorado Interstate Gas Co., a subsidiary of Kinder Morgan Inc., which will transport the certified RSG to Colorado Springs Utilities.

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As a member of the ONE Future Coalition, Kinder Morgan is part of a group of companies working to voluntarily reduce methane emissions across the natural gas value chain to 1 percent or less by 2025. Project Canary will provide technologies, data monitoring to measure methane emissions, and independent RSG certification.

“Project Canary’s solution dramatically transforms how companies measure environmental performance by combining real-time, on-site monitoring with trusted, independent verification and analysis,” said Project Canary cofounder and CEO Chris Romer in a March 11 statement. “Sustainability progress in the energy space is evolving rapidly and this exciting pilot project builds upon Project Canary’s unique position in the marketplace of delivering meaningful data-driven solutions.”

Project Canary has partnered with nearly two-dozen large exploration and production, pipeline, and utility companies and deployed its technology across 100 different well pads, including in Colorado, where the state has nation-leading on-site emissions monitoring regulations.

“This partnership will allow us to further diversify our energy portfolio and expand our commitment to environmental stewardship,” said Colorado Springs Utilities CEO Aram Benyamin. “This is the first of its kind pilot project in the nation and I’m proud to say we are at the forefront of exploring this newly-evolving Responsibly Sourced Gas market.”

Project Canary applies science, technology and data in providing real-time, continuous air emissions monitoring and through its TrustWell certification process, independently reviews, verifies and scores over 300 engineering and operational aspects of natural gas production and delivery categories including air, water land and community. These independent data sources provide trusted RSG certification.

“This partnership with Project Canary allows us to demonstrate that we responsibly develop clean natural gas by using real-time, continuous emission monitoring data along with operational best practices,” said Bayswater president and CEO Steve Struna. “Stakeholders are looking to companies to enhance transparency regarding operations. At Bayswater, we have great confidence in the integrity of our field operations and aspire to continuously improve performance and minimize environmental impacts. This win-win partnership enables us to produce both oil and natural gas resources in an environmentally responsible manner while attracting new customers and markets.” 

Bayswater has continuous monitoring on over 90 percent of its Colorado production and will aim to attain TrustWell certification of “Gold” or better for Weld County operations contributing to the pilot project. Kinder Morgan will transport gas purchased by Colorado Springs Utilities from Bayswater through its Colorado Interstate Gas Co. pipeline.

“Kinder Morgan has worked with Colorado Springs Utilities for over 90 years to provide reliable and affordable natural gas to communities and businesses in Colorado,” said Kinder Morgan Natural Gas Pipelines commercial vice president Will Brown. “We are excited to be part of this industry-led pilot as we evaluate new opportunities to responsibly deliver low-carbon energy for the benefit of the people, communities and business we serve.”

Project Canary’s goal is to mitigate climate change by helping the oil and gas industry operate on a cleaner, more efficient, more sustainable basis.

“We recognize the importance of sustainable and reliable midstream services to our customers and community stakeholders and are proud to play a part in the low carbon transition,” said Josh Cruzan, CEO of Rimrock Energy Partners. “Rimrock looks forward to making a positive impact in the gathering, processing, and marketing of RSG.”

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