The Environmental Protection Agency (EPA) approved Piñon Midstream’s plan to permanently store CO2 underground using injection wells at a company facility in New Mexico.

Piñon announced on June 18 the EPA’s decision to approve its monitoring, reporting and verification (MRV) plan for two acid gas injection (AGI) wells at the company’s Dark Horse Treating Facility in Lea County, New Mexico.

Piñon also received a new source review (NSR) permit from the New Mexico state government to expand its operations at the Dark Horse facility in May.

“Having now received both the MRV plan approval from the EPA and an NSR air permit from the State of New Mexico, and with our most recent capacity expansions up and running, we believe we are in position to become the Delaware Basin’s leading sour gas treating and carbon management provider,” said Piñon CEO Steven Green in a press release.

The company’s AGI system is the largest in the state and injects gas about 18,000 ft below the surface, underwater aquifers and oil and gas formations in the Delaware Basin. The two gas wells are permitted for a total of 20 MMcf/d of CO2 and hydrogen sulfide injection.