Tug Hill Operating LLC and XcL Midstream Operating LLC will seek responsibly sourced gas (RSG) certification for the entirety of their upstream and midstream assets via a partnership with Project Canary, the companies said on Dec. 6.

The partnership builds on Tug Hill's pilot program with Project Canary initiated earlier this year, in which the company gained TrustWell platinum certification, indicating performance in the top ten percent of peers, on 45 of the company's wells.

Tug Hill and XcL, which principally operate in West Virginia's Marshall and Wetzel counties, will be the first upstream and midstream companies to jointly seek independent certification of 100% of their operating assets. Tug Hill produces more than 800 million cubic feet per day of natural gas and delivers it to market via XcL's extensive midstream gathering system, which includes numerous interconnects with, and access to, major interstate pipelines including Rover, Eastern Gas Transmission, Texas Eastern, TC Energy and Rockies Express.  

Both companies are privately held and partners with Quantum Energy Partners, a leading energy-focused private equity firm with a strong commitment to ESG and advancing sustainability.

"The partnership between Tug Hill and XcL means, for the first time, gas purchasers will have the opportunity to buy RSG that has been TrustWell certified from the wellhead to the receipt point. Tug Hill and XcL jointly believe the integration of independent, high fidelity upstream and midstream certifications will result in a unique and unmatched RSG offering for the market," Michael Radler, CEO of Tug Hill and XcL, said.

The companies have engaged with Project Canary's market-leading upstream TrustWell and Midstream certifications, which analyze more than 600 unique operational ESG data points on a per well and midstream asset basis. In addition to independent review and certification of environmental performance, Tug Hill will install Canary X continuous emissions monitors on locations representing approximately 80% of their production in the region. These monitors measure and record precise emissions of methane, thereby providing the company with reliable, real-time data to accurately understand its emissions profile and quickly identify and repair any leaks.

Similarly, XcL will also install Canary X continuous emissions monitors at each of its major locations including their Clearfork Processing facility and several of its central dehydration and compressor stations. XcL's facilities will receive Project Canary's midstream certification through this partnership.

"This partnership between Tug Hill and XcL is a significant moment in the growth of responsibly sourced natural gas markets. These leading upstream and midstream operators are partnering to demonstrate their commitment to high standards and low emissions across the energy supply chain," Chris Romer, co-founder and CEO of Project Canary, said. "Tug Hill and XcL understand the importance of completing the RSG circle so gas buyers can have total confidence that the product purchased is produced and transported in the most advanced and environmentally responsible manner."

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