Carbon TerraVault Provides First Quarter 2024 Update

Carbon TerraVault (CTV) today provided an update on its first quarter 2024 operations. California Resources Corporation (NYSE: CRC) conducts its carbon management business through CTV which pursues carbon capture and sequestration (CCS) projects that are directly sited or within close proximity to significant sources of carbon dioxide (CO₂) emissions in California.

“We began our year by continuing to work closely with local communities and other stakeholders on advancing California's first Class VI draft permit through the public opinion period and further strengthening our leading carbon management platform,” said Francisco Leon, CRC’s President and Chief Executive Officer. “CRC's CCS proposition and its associated decarbonization technologies will further expand and scale up our low-carbon leadership and position CRC to meet the decarbonization needs of California's industrial customers while reducing emissions in our own operations. As we look ahead, CTV and Aera's combined CCS assets and capabilities are expected to further accelerate and expand our decarbonization solutions in the Golden State."

First Quarter 2024 Highlights

• EPA public comment period for draft Class VI well permits for underground CO₂ injection at the 26R storage vault, located at the proposed Clean Energy Park at Elk Hills Field in Kern County has ended
• The CTV JV achieved the milestone for the second installment related to “CTV I – 26R” reservoir pore space contribution in the amount of $46 million
• Anticipating the receipt of final permits for CTV I – 26R reservoir and the release of draft permits for CTV I – A1 / A2 reservoir in the second half of 2024
• Continuing to target the Final Investment Decision (FID) for CTV's first capture-to-storage project at CRC's Elk Hills cryogenic gas plant, located in Kern County in the second half of 2024

EPA Class VI Permitting and Kern County Draft Environmental Impact Review (EIR) Update

In December 2023, the EPA released draft Class VI permits for CTV's “CTV I – 26R” CCS project located at CRC's Elk Hills field in Kern County. These are the first draft permits released by the EPA in California. In December 2023, Kern County also released the draft EIR prepared in connection with the conditional use permit application for CTV I – 26R. In March 2024, the CTV I – 26R Class VI EPA public comment period ended. The EPA is reviewing and developing their results to comments and updating the permit with the goal of permit issuance. CTV anticipates that EPA and Kern County will deliver their final decisions on the permits in the second half of 2024. Additionally, CTV expects the EPA to release draft Class VI permits for CTV's “CTV I – A1 / A2” CCS project located at CRC's Elk Hills field in the second half of 2024.