Rebellion Opens New Frontier for Methane-Emissions Abatement With ACR Issuance, ACX Listing of Carbon Credits From Plugging Orphan Oil and Gas Wells
Rebellion's Methane-Abatement Credits Are:
- First Issued Under Carbon-Credit Leader ACR's Rigorous Orphan-Well Plugging Methodology
- First ACR-Standard Carbon Credits Listed on ACX Carbon Market Board
Rebellion: Creation, Sale of High-Quality Credits Can Add a Sustainable Source of Private Financing for Critical Methane-Abatement, Land Restoration
TULSA, Okla., Jan. 16, 2024 /CNW/ -- Rebellion Energy Solutions has opened a new frontier for methane-emissions abatement with the verified, validated creation and regulated exchange listing of carbon credits derived from permanently plugging orphan oil and gas wells.
Rebellion's standard carbon credits are the first issued under carbon-credit leader ACR at Winrock International's rigorous orphan-well plugging methodology. And, on Jan. 15, the credits became the first ACR-standard carbon credits listed on the ACX Carbon Market Board.
"The issuance and listing of Rebellion's methane-abatement credits represents important progress in the approach to tackling methane emissions from what the U.S. Environmental Protection Agency estimates are millions of abandoned, derelict oil and gas wells – most of which lack any solvent owner or responsible party for regulators to assign plugging and cleanup," said Staci Taruscio, Rebellion Energy Solutions chief executive officer.
"With this first project as an example, we believe that the generation and sale of high-quality carbon credits from permanently plugging orphan wells can develop into a sustainable source of private financing for critical methane abatement and land restoration," Taruscio said. "We are actively working in the operations phase of other projects and expect to have an inventory of methane-abatement credits available this year. And ACR earlier this month listed Rebellion's Heartland 2 Project for methane-abatement from plugging orphan wells."
Credits Issued; Links to U.N. Sustainable Development Goals
Rebellion on Jan. 12 received 80,782 metric tons CO2 equivalent (CO2e) of methane-abatement credits issued by the global carbon-crediting program, ACR at Winrock International. Rebellion's credits – for its Heartland Methane Abatement and Land Restoration Project – are the first that ACR has issued under its rigorous methodology for plugging orphan oil and gas wells.
ACR in 2023 published the world's first methodology to leverage carbon markets to finance the plugging of orphan oil and gas wells.
The volume of CO2e abated in Rebellion's Heartland Project is equivalent to more than 9 million gallons of gasoline consumed, according to the U.S. EPA's greenhouse gas equivalencies calculator. Rebellion's project also ties to key United Nations Sustainable Development Goals and mitigates legacy impacts for landowners and surrounding communities.
"These are the kind of high-quality carbon credits that the voluntary carbon market demands," Rebellion's Taruscio said. "With our above-and-beyond project rigor and ACR's methodology, we have generated methane-abatement credits with a certain, verified and immediate positive effect that will endure."
Maris Densmore, director of the Industrial Program at ACR, said: "This first-of-its-kind issuance is a powerful example of the positive impacts of carbon markets to reduce potent, fast-acting, short-lived climate pollutants, such as methane. The Heartland Project also demonstrates the added environmental co-benefits of preventing water and soil pollution and providing other health benefits for the community living nearby."
Credits Listed on Regulated, Global Market
Rebellion this week listed credits from its Heartland Methane Abatement and Land Restoration Project on the ACX Carbon Market Board for trading and settlement. Rebellion's credits constitute the inaugural listing of ACR-standard carbon credits on ACX Ltd., a leading environmental markets exchange.
"As Rebellion opens this important frontier for real methane-abatement projects, it is important to understand the global market for these ACR-issued credits and to do so in a regulated environment. Listing our credits with ACX offered us the best forum to accomplish those objectives," said Rebellion's Taruscio. "We believe these steps we're taking with this first-of-its kind, orphan-well plugging project are consistent with what it takes to drive greater worldwide demand for high-quality carbon credits that are transparent, have an immediate impact and are socially conscious."
William Pazos, co-CEO and co-Founder at ACX said, "We are honored to be the platform of choice for Rebellion Energy Solutions in bringing ACR carbon credits to the market. This collaboration strengthens our commitment to providing unparalleled access to high-quality carbon credits. Rebellion's choice reaffirms our role as the preferred market venue for leading project developers."
The Orphan Well Problem
Orphan wells are abandoned, unplugged, inactive oil and gas wells that are wards of the state – with no solvent owner of record. In addition to leaking methane – a potent, fast-acting greenhouse gas - many of these wells are in disrepair and are leaking other toxic chemicals that pollute the air, contaminate groundwater, degrade soil, damage ecosystems and pose human health and well-being risks to the surrounding community.
Rebellion's Heartland Methane Abatement and Land Restoration Project
Rebellion's credits result from the work in its Heartland Methane Abatement and Land Restoration Project, located in a historic oil-and-gas production basin in the U.S. Midcontinent.
Rebellion designed the project to ensure the leaking methane is trapped thousands of feet below the surface. In addition, Rebellion worked with local landowners to restore the surface lands, which is beyond the scope of ACR's methodology.
The wells Rebellion plugged are more than 40 years old and had been unattended for more than a decade – with no ongoing maintenance or plugging activity to ensure well integrity and no assigned responsibility to complete the lifecycle of the wells. Rebellion assumed operational responsibility for the orphaned wells from the state government and privately funded the plugging and land-restoration. No state or federal funds were available for this work.
After becoming the first orphan-well plugging project listed with ACR in June last year, the company engaged a third-party validation and verification body to review the project data. The Heartland Project wells were issued the final approved validation and verification report in January.
Additional Data for Interested Parties
Parties interested in learning more and/or purchasing these methane-abatement credits may contact Rebellion at [email protected] to request access to the Heartland Project data room, which provides a robust level of technical information on the project and the credits.
About Rebellion Energy Solutions https://rebellionenergy.com
Rebellion Energy Solutions, a portfolio company of Grey Rock Investment Partners, is headquartered in Tulsa, Okla. Rebellion is a woman-led business with a multi-disciplinary team of experts committed to creating sustainable solutions through oilfield cleanup and environmental justice in a comprehensive effort to restore the land, reduce harmful carbon emissions, and create taxable revenue streams for communities.
About Grey Rock Investment Partners https://www.grey-rock.com/
Grey Rock Investment Partners is a private equity firm with more than $1.3 billion in asset value across its private equity fund platform. Grey Rock invests across the energy value chain with private equity funds focusing on investments in natural resources, carbon capture, industrial electrification, and reduction of methane emissions.
Forward-Looking Statement
Certain statements in this article may constitute "forward-looking statements." The forward-looking statements in the article reflect the management team's best judgment at the time they are made, but all such statements are subject to numerous risks and uncertainties, which could cause actual results to differ materially from those expressed in or implied by the statements herein. Estimates of future performance reflect various assumptions that may or may not prove accurate, as well as the exercise of a substantial degree of judgment by the management team as to the scope and presentation of such information. Readers are cautioned not to place undue reliance on any forward-looking statements that may be contained herein. The company and management team do not intend to, and do not undertake any obligation to, update the forward-looking statements contained herein.
For more information:
Kerry Malone
[email protected]
918-625-4958
SOURCE Rebellion Energy Solutions
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