Top 100 U.S. law firm Akerman LLP represented Dallas-based Caracara Services, LLC in establishing a joint venture with a wholly owned subsidiary of Houston-based Battalion Oil Corporation (NYSE American: BATL) to develop, fund and operate Brazos Amine Treater, LLC (BAT), a strategic acid gas treatment and carbon sequestration facility in the Delaware Basin of West Texas.
Unlike traditional industry processes that released CO2 into the atmosphere and destroyed H2S by means of combustion or catalytic reduction; BAT will sequester the harmful compounds deep underground, in a depleted reservoir, to permanently render the compounds harmless to life, the environment and the atmosphere. BAT is positioned closer to the wellhead than the larger facilities and offers E&P companies greater operational freedom and choice of processors. When commissioned, phase one will be capable of treating 30 million standard cubic feet per day of up to 10 percent acid gas, consisting of hydrogen sulfide (H2S) and carbon dioxide (CO2). BAT seeks to increase access to acid gas treatment and sequestration capabilities in the West Texas basins, enabling E&P companies and pipeline operators to meet their ESG mandates, reduce their costs and increase their capacity.
Akerman's representation included assisting BAT in negotiating its: (i) gas treatment agreement with its initial customer; (ii) engineering procurement construction contract with Saulsbury Industries, Inc., the engineering firm designing and building the facility; and (iii) loan and security agreement with the bank providing the funding to build the gas treatment facility.
The Akerman team representing Caracara was led by transactional partner Eduardo Espinosa in Dallas. Other lawyers who assisted in the negotiations included construction partner Brenda Radmacher in Los Angeles, tax partner Robert Loewy in New York, and transactional associate Laura Taveras in Dallas.
Caracara Services constructs, owns, and operates carbon capture, utilization, and sequestration (CCUS) infrastructure. Battalion Oil Corporation is an independent energy company engaged in the acquisition, production, exploration and development of onshore oil and natural gas properties.
This development was featured in the Global Legal Chronicle, featured here.
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