Tug Hill and XcL Initiate First Production & Midstream Partnership with Project Canary to Independently Certify Responsibly Sourced Gas

FORT WORTH, Texas and CANONSBURG, Pa. and DENVER, Dec. 6, 2021 /PRNewswire/ -- Tug Hill Operating, LLC (Tug Hill) and XcL Midstream Operating, LLC (XcL) will seek responsibly sourced gas (RSG) certification for the entirety of their upstream and midstream assets via a partnership with Project Canary, the companies announced today.

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 percent of their operating assets.Tug Hill produces more than 800 Mmcf/d 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^TM 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," said Michael Radler, CEO of Tug Hill and XcL.

"Tug Hill places an extremely high focus on operational excellence, sustainability and being a good neighbor within the communities where we operate," said Sean Willis, President and Chief Operating Officer at Tug Hill Operating. "We were pleased with the results from our pilot program with Project Canary earlier this year and look forward to expanding our partnership and RSG certification. Tug Hill is committed to utilizing high fidelity technology and rigorous operating standards to reduce the methane intensity of our operations and produce energy responsibly."

"XcL's gathering assets and interconnect points are strategically located in the overlapping core of Marcellus and Utica/Point Pleasant acreage and we're proud to be a first mover in verifying that the gas moved through our system is done so in the most environmentally responsible and advanced manner," said Justin Trettel, Chief Operating Officer at XcL. "Project Canary's independent certification helps ensure midstream assets minimize unwanted methane emissions and maintain top tier operating practices, which will provide additional value for our customers. We are excited to partner with Tug Hill and Project Canary to enter into the first of-its-kind joint upstream and midstream certification and monitoring partnership."

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 percent 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," said Chris Romer, co-founder and CEO of Project Canary. "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."

About Tug Hill Operating 
Tug Hill Operating is a privately held, independent oil and gas exploration company focused on drilling and producing oil and clean-burning natural gas in the continental United States. The company is committed to ethical business practices, high safety standards, and an exceptional focus on preserving the environment in the communities where we live, work, and operate.

About XcL Midstream Operating, LLC 
XcL Midstream, LLC is a growth- oriented natural gas midstream company formed to develop, acquire, and operate midstream assets in Southwest Appalachia, the most prolific gas region in North America.

About Project Canary
Project Canary delivers trusted and reliable, independent energy ESG data. They are the leaders in the certification of responsible operations throughout the energy value chain and provide measurement-based emission profiles via continuous monitoring technology. Their work helps identify the most responsible energy supply chain operators. Project Canary Certification is the leader in energy sector operational certification and real-time emissions monitoring.  Formed as a Public Benefit Corporation, Project Canary's team of scientists, engineers, and seasoned industry operators have earned recognition for their uncompromising standards, including being named "Best for the World 2021" B Corp. Visit projectcanary.com to learn more.

Contacts:

Sean Willis
Tug Hill Operating
President & Chief Operating Officer
[email protected]

Justin Trettel
XcL Midstream
Chief Operating Officer
[email protected]

Brian Miller
Project Canary
Vice President, Growth and Policy
[email protected]

SOURCE Tug Hill Operating, LLC; XcL Midstream Operating, LLC; Project Canary