Chisholm Energy Holdings LLC formed a partnership with Project Canary to receive independent operational certification of its production facilities in the Permian Basin.

The agreement marks the first responsibly sourced gas partnership with a Permian Basin operator in New Mexico where Chisholm’s operations are focused, according to a release by the company on Sept. 29.

“We believe that by combining our operational expertise with sound environmental best practices, we can deliver value and develop our assets in the most responsible, efficient manner,” Chisholm Energy CEO Scott Germann commented in the company release.

Based in Fort Worth, Texas, Chisholm Energy is a private equity-backed independent E&P company operating in the Delaware Basin of the Permian in southeastern New Mexico. The company’s financial backers, Warburg Pincus and Ontario Teachers’ Pension Plan, are rumored to be exploring a sale of the company.

Through the responsibly sourced gas pilot agreement, Project Canary will deploy its ‘Canary X’ continuous, real-time emissions monitoring technology at a location in New Mexico’s Lea County.  Project Canary’s continuous air monitors utilize a precise, laser-based technology that accurately measures, detects and alerts operators to methane and other emissions.

Chisholm Energy will also seek Project Canary’s upstream certification of its operations to provide third-party verification the company has utilized the highest environmental standards and ESG practices in all phases of its operations. Together, monitoring and certification should enable both improved performance and access to differentiated product markets, Germann noted in the release

“Through this agreement, we aim to improve our operations further, and gain access to premium domestic and international certified low emission commodity markets, and we're excited to be an early Permian mover in this rapidly growing market,” he said.

The agreement includes options to extend to additional pads. The initial Canary X units are expected to be installed in the fourth quarter with TrustWell by Project Canary certifications complete by first-quarter 2022. 

“Chisholm Energy’s action sets a new benchmark for its Permian peers,” Project Canary Co-founder and CEO Chris Romer said in the release.

Denver-based Project Canary has announced several similar responsibly sourced gas partnerships so far this year with operators throughout the U.S., including major independents EQT Corp., Southwestern Energy Co. and Chesapeake Energy Corp.

“The market for independent continuous monitoring and certification of responsible operations is growing exponentially,” Romer said. “As a result, forward-thinking operators like Chisholm Energy are taking action to strengthen their ESG profiles and enhance environmental performance.”