STAKEHOLDERS AND EXECUTION

GHG Abatement – Methane Leak Methodology

Satellite-mounted sensors, such as GHGS at and TROPOMI, are typically focused on global and regional areas. High earth-orbit satellite-mounted sensors measure fugitive methane emissions in the metric tons per hour range (1 metric ton = 1000 kilograms: 1 kilogram = 1000 grams) whereas low earth-orbit sensors can be slightly more sensitive (0.1-0.2 metric tons/hour).
Aerial technologies, such as unmanned aerial vehicles (UAV) and airplanes coupled with various sensors, typically measure methane emissions in the 100 – 1,000 kilograms per hour range and may be more appropriate for active oil and gas production sites with many potential leak sources. This sensitivity can be increased to as low as 0.5 kg/hour near a source. Both satellite and aerial approaches utilize spectrometry and meteorological data to estimate methane emissions.
Ground-based techniques, such as hand-held natural gas detectors, high-flow samplers, and flux chambers, are direct-emission measurement techniques that require an individual to be present at the well site. These techniques can detect methane emissions at leak rates of 1 gram per hour or lower, making them suitable for orphaned and inactive well sites.

Totality’s GHG Abatement – Methane Leak Methodology is designed for responsiveness as to whom initiates a Project, whether: the incumbent operator itself of an inactive well(s); a surface owner and/or a mineral owner impacted by inactive wells that are operated by others or by defunct or absent operators; non-governmental organizations seeking to address this industry conundrum; or, financial and/or corporate investors seeking to reduce their carbon footprint through Carbon Credits.

The EPA provides for the GHG Abatement – Methane Leak Methodology the following discussion of the techniques utilized in building industry’s understanding of inactive well methane detection and measurement techniques:

GHG Abatement – Marginal Well Methodology

Totality’s Marginal Well Greenhouse Gases Abatement Methodology is guided, influenced, and/or informed by international best practices set forth in the following standards, models, and/or publications in connection with GHG Reductions and/or Petroleum Production, including:

Society of Petroleum Engineers Oil and Gas Reserves Committee, Petroleum Resources Management System;[1]
ISO 14064-2:2019, Greenhouse Gases — Part 2: Specification with Guidance at the Project Level for Quantification, Monitoring and Reporting of Greenhouse Gas Emission Reductions or Removal Enhancements;[2]
ISO 14064-2:2019, Greenhouse Gases — Part 3: Specification with Guidance for the Verification and Validation of Greenhouse Gas Statements;[3]
World Business Council for Sustainable Development and World Resources Institute’s The GHG Protocol for Project Accounting; and[4]
Carbon Measures.[5]

Applicable to both of Totality’s prescribed methods of quantifying Project CO2e Reductions – whether Economic Life or Engineered Life of Remaining Reserves, the Project Developer shall attempt to provide as thorough as possible the below descriptors and assumptions as possible:

General

Reservoir Properties

Operating Costs

• Original Hydrocarbons in Place

• Cumulative Production to Date

• Expected Ultimate Recovery

• Recovery Factor(s) to Date

• Initial production volume rate(s)

• Historical production volume rate(s)

• Annual production volume decline rate(s)

• # of wells offsetting Well(s) draining the same resource

• Historical Production Decline Rate(s)

• Production-related Infrastructure, and how utilized

• Commercial market(s) and pipeline/truck transportation outlets for gas and oil products

• Rock Quality of Seal

• Source of Hydrocarbons

• Depth(s)

• Thickness(es)

• Porosity/ies

• Permeability/ies

• Water Saturation(s)

• Dimensions of Trap

• Drainage pattern(s)

• Suitability for secondary and tertiary recovery techniques

(Applied to Method Economic Life of Remaining Reserves)

• Estimated/known Mineral Estate royalty rate or fraction

• State or local severance tax rate or fraction

• Well operating costs

• COPAS allocated costs

• Maintenance capital expenditures

Our GHG Abatement – Marginal Well Methodology also encourages a conservative approach toward Baseline Measurement of Reserves and looks favorably when the Project Developer recognizes the limitations of future Production due to: (a) new Hydrocarbon production and consumption deemed to replace or offset the Hydrocarbons avoided (or removed) from a Project, often referred to as a “Market Leakage Factor”, (b) wellbore integrity, (c) Well conditions, (d) Hydrocarbon treating, pumping or compressing, (e) Production, gathering and transportation flow lines, and (f) surrounding Well pad conditions (“Conservative Measures”).

A final area Totality is proud to incorporate is Afforestation and Reforestation (“A/R”) Activities that generate GHG removals rather than avoided emissions. As such, the quantification approach used draws from internationally recognized afforestation and reforestation standards. These standards offer reliable and transparent technical guidance on land eligibility, A/R Baseline setting, carbon pool selection, quantification, and monitoring, all of which are adapted here to ensure consistency with the Methodology’s legal and operational framework. All GHG removals resulting from A/R Activities performed within the Project Boundary are integrated into the Project’s Total Project CO2e Reductions, as defined under Section 8 of the GHG Abatement – Marginal Well Methodology. These removals are then made eligible for Carbon Credit issuance in accordance with the procedures and safeguards established by the Methodology.

[1] Society of Petroleum Engineers Oil and Gas Reserves Committee, Petroleum Resources Management System, SOCIETY OF PETROLEUM ENGINEERS, https://www.spe.org/en/industry/reserves/ (last visited February 8, 2026).

[2] International Organization for Standardization, ISO 14064-2:2019, Greenhouse Gases – Part 2, https://www.iso.org/obp/ui/#iso:std:iso:14064:-2:ed-2:v1:en (last visited February 8, 2026).

[3] International Organization for Standardization, ISO 14064-2:2019, Greenhouse Gases – Part 2, ISO 14064-3:2019(en), Greenhouse gases — Part 3: Specification with guidance for the verification and validation of greenhouse gas statements (last visited February 8, 2026).

[4] World Business Council for Sustainable Development and World Resources Institute, The GHG Protocol for Project Accounting (2003), https://ghgprotocol.org/sites/default/files/standards/ghg_project_accounting.pdf.

[5] See https://www.carbonmeasures.org/, describing a relatively newly created coalition focused on product-level carbon intensity standards, based on verifiable data informed by an enhanced emissions accounting framework.