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Checklist: Evaluating, understanding carbon contracts

Tiffany Lashmet announces in her latest Texas Agriculture Law Blog a checklist for producers to review when considering signing a carbon contract. "The devil is in the details."

Tiffany Dowell Lashmet, Assistant Professor and Extension Specialist in Agricultural Law

August 9, 2023

1 Min Read
Tiffany Lashmet and her student assistant Karli Kaase, release a carbon contract checklist with items to consider before signing the dotted line. Shelley E. Huguley

My student assistant, Karli Kaase, and I recently co-authored a fact sheet offering a list of terms for landowners considering entering into a carbon contract.  [View fact sheet here.]

The fact sheet lists basic concepts related to carbon contracts, including the following:

  • additionality

  • carbon market

  • carbon practices

  • carbon credit

  • carbon emissions

  • carbon sequestration

  • permanence

  • stacking

  • verification

Key contract terms to consider are also listed.

  • control of land

  • data ownership

  • indemnification

  • impact energy production

  • land title implications

  • negotiation costs

  • other allowable uses

  • payment

  • parties

  • penalties

  • stacking prohibition

  • standard legal clauses

  • term of agreement

  • verification

It is critical for landowners to understand that every contract is different, and the devil is in the details. Before signing a contract, landowners should carefully read the entire document, and I recommend contacting an attorney well-versed in carbon contracts to assist with negotiation and evaluation.

To learn more about carbon markets, click here for a podcast episode I did with Dr. Jordan Shockley.  To hear more about carbon contracts for landowners, click here for a podcast episode I did with Anson Howard and Todd Janzen.

About the Author(s)

Tiffany Dowell Lashmet

Assistant Professor and Extension Specialist in Agricultural Law, Texas A&M AgriLife Extension

Tiffany Dowell Lashmet is Assistant Professor and Extension Specialist in Agricultural Law, Texas A&M Department of Agricultural Economics.

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