Frequently Asked Questions: Carbon Credits from Well Plugging & Abandonment

Carbon credits from well plugging and abandonment (P&A) are generated by permanently eliminating methane leaks from inactive or orphaned oil and gas wells. When verified through approved methodologies, these emissions reductions can be issued as tradable carbon credits in voluntary carbon markets.

You can generate carbon credits by partnering with a qualified provider like Sendero. We oversee the full process—from methane measurement and documentation to well closure and carbon credit registration—ensuring compliance with protocols from a variety of registries.

Not all carbon credits are created equal. Many of the credits receiving negative attention are based on projects with questionable additionality, unverifiable outcomes, or weak monitoring practices—particularly in nature-based sectors like avoided deforestation.

In contrast, high-quality credits—like those developed through well plugging and methane mitigation—are grounded in measurable, science-based emissions reductions. These projects rely on direct methane quantification, conservative baselines, and rigorous third-party verification. Sendero focuses on helping clients pursue this kind of defensible, transparent credit development that meets the expectations of investors, registries, and regulators.

Carbon credit registries provide the frameworks used to develop, verify, and issue credits. While all aim to ensure environmental integrity, each registry has its own methodology requirements, project categories, and verification processes.

Some registries have a longer history of working with traditional offset types, while others have been designed to support emerging project areas like methane mitigation or legacy well decommissioning. Differences may include how baselines are established, how monitoring is conducted, and how credits are validated and issued.

Sendero supports projects across multiple registries and works closely with clients to identify the best fit based on project characteristics and goals.

Wells that are no longer in active production and emit measurable methane—such as low-flow, idle, or orphaned wells—may qualify for carbon credit generation if they meet the eligibility criteria of established carbon methodologies.

Unplugged or improperly abandoned wells often leak methane, a potent greenhouse gas. Plugging these wells with modern techniques and verified sealing processes prevents methane from escaping into the atmosphere, creating permanent emissions reductions.

We use advanced field technologies including tunable diode lasers, optical gas imaging (OGI) cameras, and handheld RMLD detectors to conduct precise, defensible measurements before and after plugging operations.

In addition to project-specific methane quantification, we can integrate emissions monitoring into broader compliance programs, including fugitive emissions monitoring plans, OGI/AVO inspections, and continuous monitoring systems for ongoing regulatory and investor reporting.

A typical well can be plugged in as few as 3–4 days. The full lifecycle from site assessment to carbon credit issuance can be completed within 6 months to a year—far faster than most nature-based offset projects.

Yes. Our approach ensures permanence through physical well sealing and comprehensive monitoring. Each project includes robust documentation, transparent traceability, and third-party verification to meet market and buyer expectations for high-integrity credits.

In addition to methane abatement, Sendero’s P&A projects also contribute to:

  • Land reclamation and surface restoration
  • Groundwater protection
  • Improved safety and community outcomes

These co-benefits enhance the overall environmental value of the project.

Yes. In many cases, the carbon revenue generated from plugging high-emitting wells can help subsidize the cost of plugging additional wells. This creates a multiplier effect that supports broader site remediation and environmental restoration goals.

  • Oil & gas operators with legacy well liabilities
  • Landowners seeking to reduce methane and surface impacts on their property
  • Project developers looking to finance environmental restoration projects

Yes. We can manage environmental due diligence, site assessments, environmental impact assessments (EIA) for federal leases, air quality permitting and compliance, water treatment technology implementation, and waste management programs. Our experience allows us to integrate environmental and operational planning, ensuring projects move forward efficiently and in compliance with jurisdictional requirements.

Sendero follows rigorous, science-based methodologies to ensure conservative baselines and accurate, third-party-verifiable emissions reductions. Each project is customized to site conditions and registry requirements.

Sendero offers a turnkey solution that integrates:

  • Carbon project development
  • Plugging operations
  • Environmental remediation
  • Registry engagement and credit issuance

Our team brings deep oilfield operations expertise, environmental compliance know-how, and a track record of success in carbon markets.

Yes. Our work supports regulatory alignment by demonstrating proactive methane mitigation, defensible measurement, and transparent reporting—making it easier for clients to show progress under state, federal, and investor-led frameworks.

Our compliance capabilities extend beyond P&A carbon projects to cover Texas and New Mexico state requirements, federal GHG reporting under USEPA Subpart W, and emerging methane rules such as NSPS OOOOb. We also assist with ALARM plans, air permitting, and related documentation to demonstrate proactive methane mitigation.

Yes. Sendero provides a full suite of environmental and regulatory support services across Texas and New Mexico. This includes regulatory filings, environmental impact assessments for federal leases, air quality permitting, fugitive emissions monitoring plans (including New Mexico ALARM plans), optical gas imaging (OGI) and AVO inspections, continuous monitoring system implementation, NSPS OOOOb compliance, emissions inventories, and spill response. We also offer Title V permitting, hazardous waste management, stormwater compliance, reclamation management, CCUS MRV planning, and emissions reduction technology recommendations. Clients can engage Sendero on a turnkey or as-needed basis, with a dedicated environmental engineer assigned as the single point of contact.

Yes. For clients who prefer a fully managed approach, we can act as your in-house environmental and regulatory team. We assign a dedicated environmental engineer to coordinate all field activities, maintain compliance schedules, liaise with regulators, and provide regular updates on submittals, costs, and emerging compliance issues.

Contact Sendero through our website or schedule a consultation with our carbon credit expert, David Stewart, President of Sendero ESG Solutions LLC, to determine if your wells are eligible and how to begin the carbon credit generation process.

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