Carbon Credits From Plugging Oil And Gas Wells
Methane from orphaned and abandoned wells leaks value into the sky every hour. Plugging those wells cuts emissions fast and can generate high integrity carbon credits when the file is built correctly. We scope method eligibility, run baseline and leak rate studies, draft the PDD, design QMRV that survives audit, manage VVB validation and verification, and package offtakes. If you need a team that can carry the ball from desk study to issuance and sale, this page is for you. For our full CO₂ services, open this page. No em dashes are used in this document.
Snapshot:
Eligible wells are typically orphaned or long abandoned with persistent methane flux. Additionality requires that the plug is not already legally mandated with secured funding. Baseline equals measured or modeled emissions absent the intervention. Credits reflect the reduction between baseline and post-plug emissions, converted to CO₂e using GWP100. A defensible program uses direct measurements, calibrated devices, and a clean chain of custody on data and cement work.
Table Of Contents
- What We Deliver
- Eligibility, Additionality, And Ownership
- Method Fit And Emissions Accounting
- QMRV Design: Devices, Sampling, And QA
- Program Architecture For Multi-Well Portfolios
- Timeline And Cost Ranges
- Audit Evidence And Common CARs
- Article 6, ITMOs, And Host Country Rules
- Offtakes, Streaming, And Payment Mechanics
- Get A Proposal
- FAQ
What We Deliver
- Feasibility and method selection.
Screen well lists against registry rules, map legal status, and pick the right methodology for methane abatement from well plugging.
- Baseline and leak quantification.
Pre-plug flux measurements, emission modeling where data are sparse, and uncertainty analysis.
- PDD drafting.
Full project description, boundary, baseline logic, additionality, monitoring parameters, sampling frames, and safeguards.
- QMRV build.
Device plan, calibration schedule, data schemas, field SOPs, and a version-locked calculation model.
- Validation and verification management.
VVB procurement, audit plan, site access, and rapid CAR closeout.
- Commercial track.
Offtake or streaming term sheets, pricing structures, and registry transfer playbooks.
Eligibility, Additionality, And Ownership
A plug can earn credits only if the reduction would not occur without the project. If a regulator already mandated plugging and funding is secured, additionality fails. If public grants cover the exact plug, double counting risk rises and must be addressed by contract and registry rules. Ownership of emission reductions must be clear. Secure written assignments from surface owners and any party with a claim on environmental attributes. Keep the liability chain clean. Carbon claims do not replace statutory well liability.
Method Fit And Emissions Accounting
Emissions from unplugged wells are methane dominant. Accounting requires a baseline flux per well, measured over an appropriate period, adjusted for temperature and pressure, then converted to CO₂e using GWP100. Post-plug monitoring confirms the residual flux. Reductions equal baseline minus post-plug, adjusted for measurement uncertainty, device bias, and any rebound or delayed seepage risk. For inactive wells with intermittent venting, use time-weighted or event-based models with defensible assumptions and transparent logs.
| Item |
Baseline (Pre-Plug) |
Post-Plug |
| Measurement |
Direct flux at casing vents or soil gas with high-flow sampler, chamber, or OGI plus quant |
Flux confirmation after cement set and at scheduled intervals |
| Duration |
Multi-day profile or repeated spot tests across diurnal cycles |
Immediate acceptance test plus periodic follow-ups per method |
| Uncertainty |
Device accuracy, wind effects, soil permeability, temperature corrections |
Residual seepage, long-term integrity, cement shrinkage risk |
QMRV Design: Devices, Sampling, And QA
- Devices.
High-flow samplers, closed-chamber systems, tunable diode lasers, or continuous sensors where feasible. All devices require calibration certificates and drift checks.
- Sampling.
Stratified sampling by well type, construction, and geology. For portfolios, use a statistically sound frame with clear replication rules.
- QA.
Duplicate measurements on a subset of wells, third-party back checks, field photos with GPS and timestamps, and immutable data storage.
- Calculations.
Version-locked scripts, unit tests, and change logs. No ad hoc edits in spreadsheets.
Program Architecture For Multi-Well Portfolios
Treat plugging as a program, not a one-off. Rank wells by emission rate, access constraints, and cost per ton abated. Group by basin and regulator. Lock an annual plug schedule that matches contractor capacity and audit cycles. Keep a registry of plugs with casing diagrams, cement volumes, pressure tests, and photos. Tie payout schedules to verification windows so cash and monitoring stay in sync.
| Control |
What It Does |
Evidence |
| Well Ranking Algorithm |
Targets highest tCO₂e per dollar |
Script, inputs, and outputs under version control |
| Field SOPs |
Standardizes pre-plug and post-plug tests |
Signed SOPs, training logs |
| Data Integrity |
Prevents tampering and loss |
Immutable storage, access logs |
Timeline And Cost Ranges
Ranges assume a prepared owner and clear access. Complex title, remote sites, or tough regulators extend timelines. Currency is USD.
| Phase |
Key Tasks |
Typical Duration |
Advisory Fees |
| Feasibility |
Well screening, legal and funding review, method fit, plan |
3 to 6 weeks |
25k to 60k |
| PDD + QMRV Build |
Baseline tests, PDD drafting, SOPs, data model, training |
6 to 12 weeks |
70k to 140k |
| Validation |
VVB audit and CAR closeout |
6 to 10 weeks |
Included in retainer or 15k to 40k |
| Monitoring Period |
Post-plug measurements and data freeze |
3 to 12 months |
Ongoing support as needed |
| Verification + Issuance |
VVB checks, registry issuance, transfers |
4 to 10 weeks |
Included in retainer or 15k to 40k |
Separate hard costs include VVB fees, device rentals, lab work, contractor time, and registry fees. Plugging AFEs vary widely by well depth, condition, and access.
Audit Evidence And Common CARs
| Finding |
Cause |
Fix |
| Additionality not proven |
Mandated plug already funded by public program |
Exclude those wells or restructure with clear funding separation and attestations |
| Baseline not credible |
Sparse measurements or poor corrections |
Repeat tests, improve device mix, apply temperature and pressure corrections, expand sample size |
| Data integrity gaps |
Editable spreadsheets and missing logs |
Immutable storage, version control, signed field notes with timestamps |
| Post-plug seepage ignored |
No follow-up testing or weak SOPs |
Add scheduled checks and corrective work orders into the plan |
Article 6, ITMOs, And Host Country Rules
If outcomes are sold as ITMOs, you will need host authorization, registry tracking, and a corresponding adjustment to avoid double counting. Build this into your contracts and calendar early. For voluntary buyers that do not require adjustments, keep claims language tight and avoid country-level conflicts. We prepare LOA packs, registry steps, and adjustment language for ERPAs where required.
Offtakes, Streaming, And Payment Mechanics
Forward offtakes can fund field work when the technical file is strong. Price collars and make-good clauses manage delivery risk. For portfolios, use milestone schedules tied to validation and verification events. We run a disciplined term sheet process and keep the calendar tight to avoid drift.
Ready To Build A Plugging-For-Credits Program
Send your well list, locations, regulator status, and any field data. We return a plan with method fit, costs, and a firm calendar to validation and verification.
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FAQ
Which wells are typically eligible
Orphaned and abandoned wells with persistent emissions and no secured public funding for plugging. Inactive but non-orphaned wells can qualify if they meet the method and pass additionality tests.
Do public grants kill additionality
Often yes for the specific wells covered by the grant. You can run parallel programs if funding sources and well cohorts are clearly separated with attestations and records.
How long do we monitor after plugging
At minimum through the first verification window, with periodic checks per methodology. Multi-year spot checks are recommended to manage residual seepage risk.
Can landowners or states claim credits
Yes if they hold rights to environmental attributes and the program assigns them correctly. Align contracts so only one party claims the reduction and registry records match the chain of title.
What is the quickest path to first issuance
Start with a pilot cohort in a single jurisdiction, run clean baseline tests, finalize PDD and QMRV, validate once, plug and monitor, then verify and issue. Expand with lessons learned.
Financely structures, underwrites, and distributes opportunities to buyers and investors through regulated partners. We are not a verifier or a registry. Nothing on this page is a commitment to verify, authorize, or purchase credits. All work is subject to KYC, AML, sanctions screening, registry rules, host country policies, and third party calendars.