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Bayswater Closes on Asset Purchase Agreement & Expands Colorado Operations

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DENVER—Bayswater Exploration & Production (Bayswater), a Denver-based oil and natural gas development company, officially closed on an Asset Purchase Agreement (APA) today that will increase its operational footprint in the Denver Julesburg (DJ) Basin in Weld County, Colorado. With the formal closure of this APA, Bayswater acquired the following assets from Nickel Road Operating LLC adjacent to Bayswater’s existing holdings in Weld County, Colorado:

• 2,752 net leasehold acres
• 161 net mineral acres
• 17 producing wells (5 operated, 12 non-operated)
• Working interest in 18 DUCs
• 68 operated well permits

“We are excited to expand our operations in the DJ with the acquisition of these assets from Nickel Road,” said Bayswater President and CEO, Steve Struna. “We have operated in Weld County for 13 years and are committed to the responsible development of Colorado oil and natural gas, arguably the cleanest energy molecules produced worldwide. These assets are a great fit with our existing operations and a perfect complement to our current two-rig drilling program in Weld County.”

With this acquisition, the company now has 30,000 acres in Weld County, approximately 240 producing horizontal wells, a 20-person field office in Eaton, Colorado, and daily production of approximately 30,000 BOED. Bayswater expects to commence drilling operations on the newly acquired leasehold in October 2022.

In addition to its DJ position, Bayswater has a 46,000-acre operated position in the Northern Midland basin in Texas that is currently being developed under a continuous two-rig drilling program. Bayswater operates 65 producing horizontal wells with the recent completion of a 21 well, three pad development and anticipates 2022 year end production to be approximately 25,000 BOED. Bayswater is delineating three Wolfcamp benches (A, B and D) and one Lower Spraberry bench across its contiguous acreage position. Operations are supported by a freshwater supply and delivery system, a saltwater gathering and disposal well system, an amine plant (under construction), and an extensive oil gathering pipeline network which is directly connected to the Delek – Big Spring refinery. Bayswater has a 15-person field office in Coahoma, Texas.

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Bayswater is a privately held oil and natural gas development company employing multiple best-in-class practices focused on reducing the air, land, and water impacts of their operations. Bayswater is committed to responsible energy development and the belief that the development of oil and natural gas resources and the stewardship of a pristine, sustainable environment are not mutually exclusive. To learn more, visit www.bayswater.us.

Media contacts:
Steve Struna | President & CEO | 303.893.2503
Mark Truax | Communications | 720.724.0298 | mark.truax@pacweststrategies.com

COGCC Unanimously Approves Bayswater’s Blehm 18-I Development

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First Permit Approved in Weld County Under New Regulatory Framework

Denver—Bayswater is pleased to announce last week the Colorado Oil and Gas Conservation Commission (COGCC) approved Bayswater’s Blehm 18-I Oil and Gas Development Plan (OGDP). The Blehm 18-I Development is planned for 24 horizontal wells near Severance, Colorado. This notable approval from the COGCC represents the first OGDP permit approved in the Denver-Julesberg (DJ) Basin under the COGCC’s new regulatory framework.

“The approval of the Blehm 18-I Oil and Gas Development Plan is a remarkable milestone for the entire Bayswater team, our community partners, regulators, and stakeholders,” said Steve Struna, Bayswater President and CEO. “As a small operator focused in the DJ Basin, Bayswater is pleased to be granted the first OGDP here under the new rules. This approval underscores the commitment Bayswater has to the Basin and to the greater community to continue to be a responsible operator and developer of our critically-needed domestic energy resources.”

The COGCC’s new rules provide alternative paths that Operators can pursue to gain approval to site an oil and gas location closer than 2,000 feet from residential building units (RBU’s). Bayswater’s Blehm 18-I Oil and Gas Development Plan was approved under rule 604(b)4, which allows the Commission to find “that the proposed Oil and Gas Location and conditions of approval will provide substantially equivalent protections for public health, safety, welfare, the environment, wildlife resources, including Disproportionally Impacted Communities,” (COGCC Rules 600 Series Rule, effective January 15, 2021).

Under 604(b)4 the Commission bases its findings on a number of factors including the COGCC Director’s Recommendation; the Operator’s use of Best Management Practices (BMP’s); Local Weld County governmental approval; and, the Operator’s engagement with local residences and businesses.

Weld County approved the Blehm 18-I pad at a 1041 Weld County Oil and Gas Location Assessment (WOGLA) hearing in January 2021, and the necessary COGCC Director’s Recommendation was provided in September. With those key pieces in hand, Bayswater was able to demonstrate through the planned use of extensive BMPs that substantially equivalent protections are in place for this permit under the 604(b)4 rule, allowing the COGCC to unanimously approve the permit. Bayswater’s BMPs include continuous air monitoring with Project Canary, the use of quiet fleet frac technology, engineered sound walls, oil pipeline take-away to reduce truck traffic along with several other operational practices aimed at mitigating air, noise, and light impacts.

During the hearing, COGCC Chairman Jeff Robbins stated, “In this operator, I’m finding an operator that’s doing the right thing.” The chairman later went on to state “In my opinion we find that we have established through…above and beyond BMPs, that this is substantially equivalent.”

Commissioner Bill Gonzalez added: “I thought the engagement with stakeholders and with staff, specifically, was pretty exemplary.”

Further, Commissioner Messner agreed with the COGCC staff analysis stating, “I don’t have any reason to disagree with staff’s analysis that there is substantially equivalent protections provided to all RBUs within this particular application within 2,000 feet.”

“There was a steep learning curve on this first OGDP application and COGCC staff worked very collaboratively with our team to get our permit across the finish line. I am hugely appreciative of that and pleased the COGCC finds our BMP’s and proactive outreach and engagement meet the substantially equivalent requirements,” said Struna. “We take great pride in our operations and we care deeply about being a good neighbor in Weld County. This approval is a true testament to our work and commitment to the communities in which we operate, in addition it’s a clear indication that the industry can continue to responsibly develop oil and gas here in Weld County.

With this first permit completed and approved by the COGCC, Bayswater is working to finalize the next slate of permits to allow for continuous drilling and completion operations in Baywater’s core areas in Weld County near Eaton and Severance, Colorado.

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Bayswater is a private oil and natural gas exploration and development company employing multiple best-in-class practices focused on emission reductions and committed to responsible energy development and the belief that the development of oil and natural gas resources and the stewardship of a pristine, sustainable environment are not mutually exclusive. To learn more, visit https://bayswater.us.

Media contacts:

Steve Struna | President & CEO | 303.893.2503

Mark Truax | Communications | 720.724.0298 | mark.truax@pacweststrategies.com

Colorado Energy Organizations Launch First-of-its-Kind Responsibly Sourced Natural Gas Partnership

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Utilizing Project Canary technology, pilot project brings together full energy value chain to responsibly deliver local energy to local communities

DENVER, March 11, 2021 – A Colorado natural gas producer, an infrastructure operator and local municipal utility have entered into a first-of-its-kind Responsibly Sourced Gas (RSG) pilot project with Project Canary, a Denver-based B-Corp focused on providing continuous emissions monitoring data and technologies across the energy sector. The unique wellhead to burner-tip RSG pilot extends across the energy value chain – from production, transportation and marketing of RSG – for consumer and community use locally in Colorado. Read the full article.

The pilot project will consist of the following: Colorado Springs Utilities, a municipal utility in one of the state’s largest and fastest growing regions, will purchase certified RSG produced by Bayswater Exploration & Production, a Colorado-based oil and natural gas development company. The certified RSG will be gathered and processed by Rimrock Energy Partners, a provider of midstream services in the DJ Basin, before being delivered to Colorado Interstate Gas Company, a Kinder Morgan, Inc. (NYSE: KMI) subsidiary, which will transport the certified RSG to Colorado Springs Utilities.

As a member of the ONE Future Coalition, Kinder Morgan is 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.

“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. “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 has partnered with nearly two-dozen large exploration and production, 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.

“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. “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.”

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.

“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 Exploration & Production President and CEO Steve Struna. “Stakeholders are looking to companies to enhance transparency regarding operations. At Bayswater, we have great confidence in the integrity of our field operations and aspire to continuously improve performance and minimize environmental impacts. 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.”

Bayswater has continuous monitoring on over 90 percent of its Colorado production and will aim to attain TrustWell™ certification of “Gold” or better for Weld County operations contributing to the pilot project. Kinder Morgan will transport gas purchased by Colorado Springs Utilities from Bayswater through its Colorado Interstate Gas Company pipeline.

“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.”

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

Project Canary, an International Environmental Standards company based in Denver, Colorado, is a mission-driven B-Corporation accountable to a double bottom line of profit and the social good. Project Canary believes it is possible to create a financially successful, self-sustaining business that “does well and does good.” Project Canary’s goal is to mitigate climate change by helping the oil and gas industry operate on a cleaner, more efficient, more sustainable basis. Its proven solutions provide real-time emissions monitoring and rigorous independent certification of oil and gas well sites for responsible operations. Project Canary / IES solutions help energy companies Collect, Manage, Operationalize and Benefit from real-time environmental data. Project Canary partners with the Colorado School of Mines Payne Institute to develop a collaborative environment for oil and gas companies and external parties to share best practices and insights garnered through continuous monitoring. To learn more, visit www.projectcanary.com

Colorado Springs Utilities: For generations, Colorado Springs Utilities has provided electricity, natural gas, water and wastewater services to the Pikes Peak region.  As a community-owned utility, its customers enjoy competitive prices, exceptional hometown service, responsible environmental practices and a voice in how their utility operates.  To learn more, visit https://csu.org/

Bayswater Exploration & Production, LLC.: A private oil and natural gas exploration and development company employing multiple best-in-class practices focused on emission reductions and committed to responsible energy development and the belief that the development of oil and natural gas resources and the stewardship of a pristine, sustainable environment are not mutually exclusive.  To learn more, visit https://bayswater.us/

Kinder Morgan: Kinder Morgan, Inc. (NYSE: KMI) is one of the largest energy infrastructure companies in North America. Access to reliable, affordable energy is a critical component for improving lives around the world. We are committed to providing energy transportation and storage services in a safe, efficient, and environmentally responsible manner for the benefit of people, communities and businesses we serve. We own an interest in or operate approximately 83,000 miles of pipelines and 144 terminals. Our pipelines transport natural gas, refined petroleum products, crude oil, condensate, CO2 and other products, and our terminals store and handle various commodities including gasoline, diesel fuel chemicals, ethanol, metals and petroleum coke. For more information, please visit www.kindermorgan.com.

Rimrock Energy Partners: Connecting North America’s energy basins to energy markets by aligning Integrity, Opportunity, Innovation and a Commitment to Excellence. Headquartered in Dallas, Texas, Rimrock’s asset base is positioned for continued expansion in the ever-growing North American energy market. For more information, please visit: https://rimrockenergy.com/

Contacts: 

Project Canary
Chris Romer
Co-Founder and CEO
chris.romer@projectcanary.com

Colorado Springs Utilities
Natalie Watts
nwatts@csu.org

Bayswater:
Steve Struna
President and CEO
sstruna@bayswater.us

Kinder Morgan
Lexey Long
Media Relations
newsroom@kindermorgan.com

Rimrock Energy Partners
Cale Stacy
c.stacy@rimrockenergy.com

Bayswater Commits to Conduct Continuous Air Monitoring at Colorado Oil and Gas Production Sites

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DENVER, February 24, 2020 – Bayswater Exploration and Production today announced a major commitment to a continuous air emissions monitoring program for its Colorado operations. By mid-2020, Bayswater will install monitoring devices at locations encompassing approximately 99% of its production in Colorado’s DJ Basin.

When complete, a leading percentage of Bayswater production will be subject to continuous air monitoring, one of the strongest commitments to apply and test this new technology in the oil and natural gas sector. In addition, Bayswater will join the Continuous Monitoring Program, a partnership with the Payne Institute for Public Policy at the Colorado School of Mines and emissions monitoring company Project Canary. They will provide an independent third-party review of data collected from locations.

“We have a high level of confidence in our operational practices,” said Steve Struna, Bayswater President and Chief Executive Officer. “This unparalleled commitment and partnership provide us with an additional level of assurance through third-party review of air quality data from our oil and natural gas operations.”

“Colorado has the strictest air regulations in the country, along with the most environmentally responsible oil and natural gas production nationwide. Our continuous monitoring further demonstrates Bayswater’s commitment to environmentally responsible oil and natural gas development and production. This gives our stakeholders, including regulators, local communities, neighbors, and investors, even greater confidence that we adhere to the highest operational standards.”

While also demonstrating the efficacy of continuous air quality monitoring to improve operational processes, partnering with the Colorado School of Mines and Project Canary gives Bayswater access to a leading educational institution and technology provider as it continues to seek to improve environmental, social, and governance (ESG) outcomes for its operations.

“We chose to engage with Payne and Project Canary because of the tremendous learning opportunity it provides us to know even more about improving the efficiency of our operations so that we can engage more effectively with the communities where we operate and the regulators who oversee our activities,” said Struna. “Our goal is to demonstrate the low environmental impact of our operations. The best thing we can have is real-time data which affords us the opportunity to continuously improve our health, safety, and environmental performance.”

“Bayswater’s significant contribution to this partnership will dramatically increase the amount of data being shared with the Payne Institute, and will really provide clarity as to the emission intensity that all upstream oil and gas operators may be seeing during production” said Chris Romer, Project Canary Chief Executive Officer and Co-Founder. “Continuous monitoring is a new technology and can dramatically increase the level of insight that operators have into their operations. We are excited about Bayswater’s commitment and are dedicated to act as an independent, secure provider of data for all partners in the program.”

“The Payne Institute is focused on providing objective data to help inform decisionmakers in the private and public sectors to address issues of societal concern related to energy and the environment,” said Dr. Morgan Bazilian, Payne Institute Director and Professor of Public Policy. “As this pilot grows beyond Colorado, our institute will be able to provide greater insight into emissions intensity from oil and gas operations.”

For more information on Bayswater’s continuous air monitoring, please visit https://bayswater.us
/sustainability/hser/sustainability-spotlight-project-canary/.

About Bayswater

Bayswater Exploration & Production is a Denver based oil and natural gas development company that was founded in 2004. Its companies have historically owned and operated properties throughout the Rocky Mountains, the Mid-Continent Region, California, and the Permian Basin. Bayswater currently operates over 300 wells and produces 15,000 net BOE/day. Current operations are focused in the DJ Basin Codell-Niobrara play and the Permian Basin. For more information, visit https://bayswater.us/

About Project Canary

Project Canary, based in Denver, Colorado, is a mission-driven B-Corporation accountable to a double bottom line of profit and the social good. Our goal is to mitigate climate change by helping the oil and gas industry operate on a cleaner, more efficient, more sustainable basis. Our proven technology monitors emissions of methane and VOC on a near-real-time basis, enabling energy producers to rapidly and effectively identify and remediate fugitive emissions. The Project Canary solution is continuous, rugged, simple and affordable. For more information, visit ProjectCanary.com.

About the Payne Institute of Public Policy

The mission of the Payne Institute at Colorado School of Mines is to provide world-class scientific insights, helping to inform and shape public policy on earth resources, energy, and environment. The Institute seeks to link the strong scientific and engineering research and expertise at Mines with issues related to public policy and national security. For more information, visit PayneInstitute.MINES.edu.

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