05.07.2009

In a Gas Sales Agreement (GSA) if the buyer takes more than his TOP or ACQ amount of gas in any year (depending on what was agreed), he will then receive a credit for the overtake. This is aggregated with all overtake credits from previous years as a carry forward balance.

Thereafter, if the buyer takes less than the ToP amount, he can then reduce his ToP liability by the amount of the carry forward balance. The buyer will want to negotiate as long a period as possible and certainly longer than 1 year. If the ToP is high, then the carry forward period should be longer as there is smaller chance that the buyer will be able to enjoy the carry forward as he will be meeting his ToP obligations more frequently

A carried interest is an agreement under which one party (the carrying party) agrees to pay for a portion or all of the pre-production costs of another party (the carried party) on a license in which both own a portion of the working interest. This arises when the carried party is either unwilling to bear the risk of exploration or is unable to fund the cost of exploration or development directly. Sometimes the government is even the carried party by an oil and gas company

360 to 286 million years ago

Rock that is composed mostly of carbon mineral

A group of minerals found mostly in limestone and dolostone that includes aragonite, calcite and dolomite. Calcite is the most abundant and important of the carbonate minerals

Taxes levied on fossil fuel. The amount is based on the carbon foot print / carbon content of the actual fuel. The concept is to incentivize consumers to reduce consumption of high polluting fuels A surcharge on the carbon content of oil, coal, and gas that discourages the use of fossil fuels and aims to reduce carbon dioxide emissions

Is the natural or human activity or mechanism that removes carbon dioxide from the atmosphere, such as the absorption of carbon dioxide by growing trees. The concept of carbon sinks is based on the natural ability of trees, other plants and the soil to soak up carbon dioxide and temporarily store the carbon in wood, roots, leaves and the soil. Proponents of carbon sink credits suggest that the absorption of carbon dioxide by trees and the soil would be just as valid a means to achieve emission reduction commitments under the Kyoto Protocol as cutting emissions of carbon dioxide from fossil fuels. Carbon sinks have dominated the climate change agenda, diverting attention away from the inescapable need to drastically curb greenhouse gas emissions in industrialized countries