A Colorado natural gas producer, an infrastructure operator and local municipal utility announced a “first-of-its-kind” responsibly sourced gas (RSG) pilot project with Project Canary on March 11.

Utilizing the technology of Denver-based Project Canary, the pilot will extend across the energy value chain—from production, transportation and marketing of RSG—for consumer and community use locally in Colorado.

“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 Co-Founder and CEO Chris Romer in a 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 is a B-Corp focused on providing continuous emissions monitoring data and technologies across the energy sector through its “Canary X” technology. The company recently launched pilot projects to develop RSG with EQT Corp. in the Appalachian Basin and UP Energy LLC in Wyoming’s Green River Basin.

Participants in Project Canary’s RSG pilot project in Colorado include:

  • Colorado Springs Utilities, a municipal utility in one of the state’s largest and fastest growing regions;
  • Bayswater Exploration & Production LLC, a Denver-based oil and natural gas development company;
  • Rimrock Energy Partners LLC, a provider of midstream services in the D-J Basin; and
  • Colorado Interstate Gas Co., a Kinder Morgan Inc. subsidiary.

“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 in a statement commenting on the pilot project. “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.”

The pilot will consist of Colorado Springs Utilities purchasing certified RSG produced by Bayswater Exploration & Production. The certified RSG will then be gathered and processed by Rimrock Energy Partners before being delivered to Colorado Interstate Gas Co., which will transport the certified RSG to Colorado Springs Utilities.

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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.

Bayswater has continuous monitoring on over 90% of its Colorado production and will aim to attain TrustWell™ certification of “Gold” or better for Weld County operations in Colorado contributing to the pilot project, according to the release.

“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. ... 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,” Struna added.

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

“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 has partnered with nearly two-dozen large E&P, 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, the company release said.

“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,” Josh Cruzan, CEO of Rimrock Energy Partners, added in a statement. “Rimrock looks forward to making a positive impact in the gathering, processing and marketing of RSG.”

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