Summary Project Requirements

Totality’s Greenhouse Gases (aka “- Methane Leak”) and Marginal Well Greenhouse Gases (aka “- Marginal Well”) methodologies each include an Appendix outlining the Project Requirements. The methodologies are available once an organization has accepted Totality’s Terms of Service and Registry Rules, registered and becomes a Member.

The Methodology currently applies to orphan and/or inactive wells in the State of Texas, USA.  Totality is actively reviewing other North American jurisdictions; these reviews begin with the regulatory requirements in state/province for plugging and abandoning wells. 

To help a stakeholder decide whether to register, the Methodology, origination of Carbon Credits and general steps for Listing Carbon Credits are summarized below (see the Methodology and Defined Terms for definitive Project Requirements):

The Project Developer (“PD”):

  1. Identifies an orphan and/or marginal well (whether active, inactive, shut-in or idled)
    1. Multiple wells may be organized into a single Project
  2. Obtains access rights to evaluate, and conducts a Preliminary Measurement in the case of an orphan well, or may quantify future hypothetical hydrocarbon production from publicly-available records
  3. Methodology application hinges upon the well’s condition and Project Developer’s goals, hence PD either:
    1. Conducts a Measurement Session to collect a well’s emission composition and flow rate to calculate Baseline Emissions Measurement Volumes, and converting such volumes into a Baseline Emissions Carbon Dioxide-equivalent (“CO2e”) using the Global Warming Potential 20-year Factor, or
    2. Quantifies the Project CO2e Reductions utilizing either Economic Life of Remaining Reserves method or Engineered Life of Remaining Reserves method, and any Project Environmental Attributes CO2e
  4. Secures rights from mineral estate to complete a P&A Project
  5. Submits forms to Government Authority (e.g., Railroad Commission of Texas, or other agencies as applicable) for the P&A Project; and executes a P&A Project
  6. Conducts a Measurement Session and Reassessment no later than 90 days after P&A Project to measure the Post-Plugging Emissions CO2e Volumes, net of Discount Factors, as well as complies with the Project Monitoring Requirements over the Project’s Crediting Period
  7. Works with a Validation Body who confirms compliance with Project Requirements; and works with a Verification Body who confirms data collection, calculations and related documentation
  8. Applies to the Registry for Carbon Credits, and upon an issuance or Listing may complete the sale of Carbon Credits to a Registry Member Buyer

The Registry:

  1. Reviews the Project Developer’s compliance with Project Requirements, particularly the opinions of the PD’s Validation Body and Verification Body
  2. Approves the Carbon Credits for Listing, or
    1. Provides feedback to the Project Developer, or
    2. Rejects the application
  3. Enables the Transfer, if needed, of the Carbon Credits to a Registry Member Buyer
    1. Note: a PD may apply and be issued Carbon Credits should it self-perform a Project and not seek the sale of Carbon Credits
    2. Note: a PD may organize a Project but enable a Registry Member Seller to fund the P&A Project and sell/transfer Carbon Credits to a Registry Member Buyer
  4. Monitors a Buffer Account that liquidates upon the termination of the Crediting Period

Totality recognizes that: a) a Project’s sequence among the Project Requirements may differ; b) a Member Buyer and a Member Seller may execute documentation ahead of or contingent upon a Project’s completion and corresponding Issuance or Listing of Carbon Credits; c) Registry Members may enjoy leveraging the draft ancillary documentation created so as to streamline transaction costs (e.g., Surface Use Agreement; Wellbore Adoption Agreement; Carbon Credit Purchase & Sale Agreement; among others).

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