Northern Delaware Basin/Red Hills

Targa Northern Delaware, LLC (TND) operates the Red Hills Gas Plant CCS project in Lea County, New Mexico, which captures CO₂ as part of treated acid gas (TAG) streams from natural gas processing and injects it into dedicated underground disposal wells. The project utilizes two active injection wells—Red Hills AGI #1 and AGI #3—permitted under New Mexico’s UIC Class II program. Each well is authorized for injection rates of up to 13 MMSCFD, with AGI #3 entering service in January 2024 and AGI #1 operating since 2018, enabling long-term subsurface containment of CO₂ and associated acid gas components. The injected CO₂ is stored in deep saline and sandstone formations within the Bell Canyon and Cherry Canyon intervals at depths of approximately 5,700 to 7,600 feet. TND has submitted an EPA-approved Monitoring, Reporting, and Verification (MRV) plan under Subpart RR to qualify the project for federal 45Q tax credits and plans to continue injection operations for up to 30 years. Reservoir modeling indicates that injected CO₂ will remain contained within the permitted geologic formations with no significant migration beyond the facility boundary