Frequently Asked Questions

Ultimate Carbon Credits, LLC markets certified carbon credits to interested companies or organizations wishing to reduce their carbon footprint.

Ultimate Carbon Storage evaluates abandoned, orphaned or under performing well bores for remaining reserve amounts, then we cap and seal well bore following strict requirements as set by the industry recognized ZeroSix certification process.

Ultimate Carbon Storage takes several environmental steps when completing the cap and seal process.  We evaluate remaining reserves, have a reserve report prepared, cap and seal, monitor well bore for 1 year for any leakage of methane and refurbish the area around the work site at completion.....all while minimizing disturbance to nearby ecosystems.

There are carbon emissions in oil and gas operations which range from direct emissions of methane, carbon dioxide, and other greenhouse gases.  These emissions are attributed to exploration and production, emissions generated when purchasing energy, and in transporting, refining, or processing of the hydrocarbons.  Emissions are also released into the atmosphere when using the refined product in industry, transportation or residential.  Plugging wells is a way to avoid the emissions altogether, and at the same time, restore the ecosystem and improve the environment for the community. 

Images that document the well, the environment around the wellsite, emissions data to document if there are GHG emissions below state-allowed levels, well data, production data, lease records, reserve reports. 

Oil and gas-based emissions are uniquely measurable, verifiable, and transparent. Using a science-based approach, carbon registries have developed methodologies that allow them to calculate with precision the amount of emissions that will be prevented from entering the atmosphere. These measurements are taken under scientifically-developed procedures, are verifiable and are archived permanently.

Carbon registries that work with projects to generate oil and gas-based carbon credits have developed science and measurement-based methodologies that accurately account for Scope 1 direct emissions that will be eliminated.  They can also incorporate Scope 3 emissions, which represent the supply-chain emissions – those emitted in the course of transporting, processing, refining, or treating wells. The registries work with independent third-party verifiers to make sure that the correct procedures for measurements have been followed, and that reserve report calculations adhere to SEC regulations.  Registries also require third-party validation to assure that all calculations are correct, and that the documentation submitted is complete and accurate. 

A reserve report is an industry and Security Exchange Commission/Toronto Exchange/London Exchange/Australian Stock Exchange accepted process of evaluating the oil and/or gas in place for a reservoir (pay zone) and how much can be extracted economically.  This is a legal document and has to be certified by a professional engineer.

Typically, 5% to 45% of the oil can be extracted from a particular reservoir.  So, if a reserve report indicates that 2% has been produced then at least another 2.5% to 42.5% is available to be extracted under primary, secondary or enhance oil recovery methods.

Gas is typically produced under primary methods and in conventional reservoirs recovery varies from 30% to 80%.  Shale reservoirs typically produce less due to the low permeability.

Simply put because it is cheaper than letting many of the operators just walk away sticking the states and the tax payers with the costs for. plugging.  In many states it takes several years for state acquired orphaned wells to be plugged unless the states have directed money for such actions, or the Federal government provides the money.  If an operator knows his wells will get plugged and he/she can avoid the expense personally, the Operator usually will be willing for carbon credits to be created by a third party undertaking the work of sealing their well(s). 

The mineral owners benefit from the creation of carbon credits by typically receiving 12.5% royalty (which corresponds to their oil and gas lease; in this case 1/8 interest) of the net value of the carbon credits after the costs of creating them are deducted.  Therefore, the creation of the credits are a win-win for both the creator of the credits and the mineral owner  

The carbon credits are only specific to the reservoirs that are being produced or behind pipe.  These are the minerals that the owner agrees to prevent leasing.  If other zones exist but are not included in the carbon credits issued then they are available to be leased. 

The credits are held generally by the registries so any one can review and evaluate the information. 

The land is cleaned up and returned to other uses such as 100% farming, pasture or woodlands. 

As of now 50 Years