1. 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

2. 1000 2000 3000 4000 5000 6000 7000 Global Emission of Carbon as CO 2 Global Carbon Six warmest years of global record all after 1990. Premise: Enhanced Greenhouse Effect Global Temperature Anomaly ( o C) (million metric tons) 200019501900 1850 Years

3. 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

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

5. 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 ! Southwest Carbon Project Objectives Figure compliments of Rick Allis, UGS

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

7. Southwest Regional Partnership on Carbon Sequestration 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 1,2 3 4 September, 2006 150,000 tons/year Best Demonstration Options

8. Southwest Regional Partnership on Carbon Sequestration Utah Demonstration Summary LocationType of TestTest DetailsEstimated 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 plugged- abandoned wells suggest special monitoring needs - An estimate of minimum capacity of test unit: 100,000,000 tons - Value added Benefit: enhanced oil recovery - Expected increase in oil recovery: minimum additional 15,000 BOPD

9. 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 1,2 3 4 July, 2007 75,000 tons/year Best Demonstration Options

10. New Mexico Demonstration Summary LocationType of TestTest DetailsEstimated 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 Terrestrial: Desalinate water from ECBM test and use for riparian restoration - An estimate of minimum capacity of test unit: 100,000,000 tons - Value added Benefit: enhanced methane recovery - Value added Benefit: wetland restoration

11. Southwest Regional Partnership on Carbon Sequestration 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 1,2 3 4 Best Demonstration Options March, 2007 160,000 tons/year

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

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

14. Schedule of Major Activities Test/ActivityLocationStart Date Detailed Project PlanEach SiteBegun Permitting ProcessAll sitesBegun Tailored MMV DesignAll sitesBegun Baseline Models*All sitesBegun Risk AssessementAll sitesBegun Terrestrial - RegionalRegionJanuary, 2006 Baseline MMVParadox Basin, UTJanuary, 2006 Baseline 3-D SeismicPermian Basin, TXJanuary, 2006 Baseline 3-D SeismicParadox Basin, UTMarch, 2006 Baseline MMVAll other sitesSpring, 2006 Deep SalineParadox basin, UTFeb, 2007 EOR/SequestrationParadox basin, UTSept., 2006 EOR/SequestrationPermian basin, TXMarch, 2007 Terrestrial - RiparianSan Juan basin, NMJune, 2007 ECBM/SequestrationSan Juan basin, NMOct., 2007 Jan 06 Jan 07 Jan 08 Jan 09 Utah Saline Utah EOR Texas EOR New Mexico ECBM Injection Schedule Feb 07 Sep 06 Mar 07 Oct 07

15. 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