Formed in 2023 and backed by Bayswater Management, Tejon Treating & Carbon Solutions is rapidly establishing itself as a cornerstone in the Permian Basin’s sour gas infrastructure landscape. As operators push deeper into H₂S-rich zones in West Texas, existing infrastructure struggled to keep pace—until Tejon entered with a mission: gather, treat, and responsibly manage sour gas where others couldn’t.

1. Why Tejon Matters in the Permian

Rising Sour Gas Production: Midland Basin producers are tapping zones with significant hydrogen sulfide, but limited treatment options made sour-rich zones uneconomic
First-Mover Advantage: While the Delaware Basin had a network of sour-gas handlers, Midland was largely untapped—Mongoose Gas Plant fills that void 
Rapid Capacity Ramp: Launched at 17 MMcf/d in 2023, Mongoose surged to 70 MMcf/d capacity by mid‑2025, now operating across 90+ miles of pipeline and 137,000 dedicated acres 
ESG & Decarbonization Aligned: Fully connected to the electrical grid—with both the plant and compressor station electrified—Tejon supports low-carbon strategies and aligns with tightening emissions standards

2. Integrated Permitting: The Backbone of Operations

Tejon’s infrastructure buildout includes coordinated permitting across pipelines, compressor stations, and air operations:

🔹 Pipeline System – Permits #10654 & #10655

Permit No. 10654 (Howard & Mitchell counties – ~20 mi): Features both regulated gathering lines (16.5 mi) and unregulated 6″ HDPE lines (3.6 mi) tied to the Mongoose Plant

Permit No. 10655 (~46 mi across Borden, Howard, Mitchell): Expanded in March 2025 from an initial 40.9 mi, incorporating additions and as-built corrections to support expanded gathering capacity .

These pipeline permits are crucial to flow assurance—ensuring even during disruptions, Tejon’s network remains operational for its customers.

🔹 Compressor Station – Permit #177429

Signal Peak Compressor Station, permitted in September 2024 under STDPMT rules, is located in Howard County near Big Spring 
Linked to the gathering system, it supports gas boosting ahead of the Mongoose treatment plant and is included in Tejon’s full electrification strategy.

🔹 Gas Plant Air Permit – Permit #170126

The Mongoose Gas Treatment Plant holds a Standard Permit (issued Dec 2024, valid through Sept 2032) for sour gas and H₂S removal via amine systems in Mitchell County
Operates under EPA/TCEQ Rule 6002 for oil & gas facilities—an essential environmental compliance milestone.

Together, these permits form an integrated system: gathering sour gas → compressing → treating → delivering gas or NGLs. Each regulatory milestone was timed to match capacity expansions and service rollouts.

3. Strategic Impact & Future Outlook

Opening Drilling Inventory: With treatment capability and secured takeaway pathways, operators can now economically target sour-rich acreage that was previously sidelined.
Midland Source-Plant Linkage: Tejon’s infrastructure connects local producers to takeaway pipelines and processors through multiple downstream connections 
Scalable Infrastructure: With Train 3 in FEED and growing demand, Tejon positions itself not just as a mid-sized player—but a key enabler for sour gas development across the Permian .

As environmental oversight tightens and sour-gas drilling intensifies, Tejon Treating & Carbon Solutions stands at the nexus of infrastructure development, environmental compliance, and market access for Midland Basin producers. Their integrated asset base—anchored by well-sequenced pipeline, air, and compressor permits—positions them to deliver both economic enablement and regulatory resilience in the region’s evolving energy landscape.