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.

Table Of Contents

1. What We Deliver
2. Eligibility, Additionality, And Ownership
3. Method Fit And Emissions Accounting
4. QMRV Design: Devices, Sampling, And QA
5. Program Architecture For Multi-Well Portfolios
6. Timeline And Cost Ranges
7. Audit Evidence And Common CARs
8. Article 6, ITMOs, And Host Country Rules
9. Offtakes, Streaming, And Payment Mechanics
10. Get A Proposal
11. 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.

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.

Timeline And Cost Ranges

Ranges assume a prepared owner and clear access. Complex title, remote sites, or tough regulators extend timelines. Currency is USD.

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

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.

FAQ

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.