University Lands FY22 Annual Report

AIR

Flaring University Lands supports the goal of minimizing overall flaring on the Lands and industry-wide. Through regular communications with operators and regulatory bodies, UL encourages best practices to safely reduce routine flaring. These include bringing wells online only when adequate takeaway capacity is connected and shutting production during prolonged upsets. UL monitors a real-time (based on production reporting deadlines) graphical interface of flared volumes by lease and operator. UL contacts operators reporting atypical flared volumes to discuss contributing factors and corrective actions. Operators owe royalty payments to UL for all gas produced on PUF Lands, even if flared or combusted for lease fuel. As a result, the frequency of flaring on UL has been lower than that of the total Permian Basin for six consecutive years.

Greenhouse Gas Emissions (GHG) Management Optical Gas Imaging (OGI) Inspections Approximately 56% of production from University Lands is managed by public companies which have articulated specific goals for reducing the methane intensity of their operations. University Lands is in continuing dialogue with these companies and other producers on the Lands regarding facility modifications, leak detection and repair, and goals for emissions reduction University Lands supports our operators’ objectives and strives to lead the Permian Basin in overall emission reduction through the continuous performance of air inspections performed by University Lands staff.

88

OGI emission compliance inspections conducted 90

OGI flare inspections conducted

2.1%

Gas flared/MCF produced

29

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