Rapid Deployment and System Scalability: 2,200 wells addressed over 9 weeks in Colorado

Customer:  

E&P operator in the Piceance Basin, western Colorado

Site Type:  

Existing brownfield pads

Challenge:

Conversion of 2,200 wells and 8,000 pneumatic devices from wellhead gas to nitrogen in less than 3 months

A Rockies-based E&P operator with a large number of existing assets operating on wellhead gas for their pneumatic devices was facing a significant potential fee under the incoming IRA Waste Emission Charge (WEC) as of January 1, 2024. The fee applies to facilities emitting more than 25,000 metric tons (MT) of carbon dioxide equivalents (CO2e) per year, set at $900 per MT of methane in 2024, increasing to $1,200 per MT in 2025 and $1,500 per MT in 2026 and thereafter. The fee was set to take immediate effect as of January 1, 2024.

This operator was introduced to Kathairos’ liquid nitrogen system by a neighboring operator and current Kathairos customer who had recently deployed the system across their Piceance Basin pads.

Project:

The first meeting between Kathairos and the Operator took place mid-September 2023

The operator provided a list of sites containing the number of wells per pad and average pneumatic devices per well.  Also included was a low-end and high-end estimate of their vent rates (gas consumption) rate per well.  Within a week, a proposal was submitted for 130 nitrogen systems which would address more than 2,200 wells and nearly 8,000 pneumatic devices. The goal of both parties was to have all 130 systems operating before the end of the year, and entirely eliminate all site emissions and tax exposure.

Request the whitepaper to learn how it was done and what's happened since.

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