Nevada Carbon Dioxide Storage Lease (with Landowner)
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FAQ
Absolutely! Farmers and landowners can sell carbon credits because ALL land can store carbon. Landowners are eligible to receive carbon credits at the rate of one per every ton of CO2 their land sequesters.
On average, 100 acres of forested lands removes 115 tons of carbon dioxide each year.
Under American rule, the mineral estate holder owns the minerals but not the geologic formation. The surface owner owns the geologic pore space and has storage rights.
An acre of land used for carbon sequestration or other methodologies for reducing a carbon footprint generally removes 0.2 to 1.5 metric tons of carbon annually. Given that these CO2 reductions are worth $15 to $20 per metric ton, whoever owns that acre of land can expect payments of $3 to $30 per year per acre.
Landowners can participate in a carbon lease through carbon sequestration that is stored in the soil or through trees on the property. This is known as carbon offsets or carbon sequestration. Landowners can also lease their previously drilled wells to store carbon underground.
One of the country's largest forest-carbon firms is launching a platform to enable Southern-timberland owners to sell carbon offsets on properties as small as 40 acres, expanding a market that has mostly been limited to owners of vast wooded tracts.
Landowners would enter a contract with a carbon developer and then adhere to the practices of the contract on their land. If the landowner follows through with those practices, then they receive monetary compensation based on the contract.
Landowners can sell carbon offsets on what are called voluntary carbon markets. These carbon credit buyers are purchasing carbon credits as an investment or are businesses trying to meet internal standards for carbon footprint reduction. In contrast, a cap-and-trade market consists of companies trading allowances.