Terra Verde Emissions Credits Inc. Tillage System Management Offset

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					     Terra Verde Emissions Credits Inc.
Tillage System Management Offset Project Plan
          (Agricultural Carbon Credit Program)
                  September 5, 2008 (Version 6)
                                                                              Contents

1     Rationale for the use of the Alberta Environment Protocol ...............................................................................1
2     Project Scope and Site Definition ......................................................................................................................2
    2.1 Project Description ......................................................................................................................................2
    2.2 Site Definition .............................................................................................................................................2
    2.3 Aggregation Methodology...........................................................................................................................4
    2.4 Project Scope and Schedule.........................................................................................................................6
      2.4.1 Project Proponent....................................................................................................................................6
    2.5 Project Eligibility.........................................................................................................................................6
3     Inventory of Sources & Sinks ............................................................................................................................8
    3.1 Inventory Baseline and Project Sources and Sinks......................................................................................8
    3.2 Relevant Baseline and Project Sources and Sinks .......................................................................................8
4     Quantification Plan...........................................................................................................................................10
5     Monitoring Plan ...............................................................................................................................................15
    5.1 Data Collection Procedures .......................................................................................................................15
6     Quality Assurance and Control Plan ................................................................................................................18
    6.1 Quality Assurance/ Quality Control (QA/QC) ..........................................................................................18
    6.2 Management of Data Quality.....................................................................................................................18
      6.2.1 Record Keeping ....................................................................................................................................18
    6.3 Data Management System .........................................................................................................................18
      6.3.1 Overview of Data Management System ...............................................................................................18
      6.3.2 Tillage System Management Data Process Diagram ............................................................................19
      6.3.3 Tillage System Management Controls Matrix ......................................................................................19
7     References........................................................................................................................................................20


Appendices

A – Methodology Documentation

B – Process Map and Control Matrix

C - Procedures
   Offset Project Plan - Tillage System Management




1 Rationale for the use of the Alberta Environment Protocol
   The Alberta Environment Tillage System Management protocol (the ‘Protocol’) was selected to guide the
   composition of this project plan. It was selected to support the offsets generated under Terra Verde Emissions
   Credits Inc.’s Agricultural Carbon Credit Program to meet Alberta Environment’s Specified Gas Emitters
   Regulation (SGER). In addition, at the time of Project initiation, Terra Verde Emissions Credits Inc.’s (‘Terra
   Verde’) data collection, quantification and monitoring processes were designed to comply with the processes in
   the Protocol. For this, much of the content for this project plan has been taken directly from the Alberta Tillage
   System Management protocol.




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      Offset Project Plan - Tillage System Management




 2 Project Scope and Site Definition
2.1   Project Description
      Carbon offsets can be generated from direct and indirect greenhouse gas emissions when no-till and reduced-till
      farming practices are implemented (AENV 2008). These tillage systems are further defined in Table 1 below.
      Terra Verde’s Agricultural Carbon Credit Program is a means for Terra Verde to aggregate agricultural carbon
      offsets from the purchase of those offsets from Producers1. The carbon offsets are quantified in accordance with
      the Quantification Protocol for Tillage System Management (the ‘Protocol’) set by Alberta Environment.

      Table 1: Definitions of Tillage Systems in the Parkland2 and Dry Prairie Protocol Areas.

      Tillage System                   Cropped Land Period3                                              Fallow Period4

      No Till (NT)                     Up to two passes with low-disturbance openers                     No cultivations
                                       (up to 38%)5, 6 or one pass with a slightly higher
                                       disturbance opener (up to 46%) to apply seed,
                                       fertilizer or manure7, discretionary tillage of up
                                       to 10%5, no cultivation

      Reduced Till (RT)                Soil disturbance to apply seed, fertilizer, or                    One or two cultivations
                                       manure exceeds no till definition and / or one
                                       cultivation in fall or spring

      Full Till (FT)                    More than one cultivation between harvest and                    More than two cultivations
                                       subsequent seeding if no fallow in that period,
                                       or, more than three cultivations between harvest
                                       to subsequent seeding if fallow

      Source: Alberta Environment (AENV). “Quantification Protocol for Tillage System Management.” Specified Gas Emitters Regulation.
      Version 1.3. Province of Alberta, February 2008.



2.2   Site Definition
      The project site includes all Producers fields in Alberta for which Terra Verde has entered into contract to
      purchase and aggregate offsets. This relationship is illustrated in Figure 1 below. This includes without exception



      1
        The term ‘Producer’ noted throughout this document can be interchanged with the word ‘Farmer’.
      2
        The Peace River Lowland ecoregion is contained within the Parkland zone.
      3
        Cropped land period applied to the management cycle that terminates at harvest, (e.g harvest to harvest defines the cropped land period). This
      includes land preparation for seeding which may occur in the previous fall.
      4
        Fallow period extends from harvest for one full year to the next fall.
      5
        Percentage values associated with openers are based on maximum opener with (e.g. 5 inch openers actually measure 5.5 inches) divided by
      the shank spacing of the implement.
      6
        Additional operations with harrows, packers, or similar non-soil disturbing implements are accepted. Where a second low soil disturbance
      operation is performed it is normally for injection of fertilizer or manure.
      7
        Discretionary tillage of up to 10% means that up to 10% of the surface area of a single agricultural field may be cultivated to address specific
      management issues. These areas are determined on an annual basis, meaning that specific areas may change from year to year.



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fields that generated offsets that were initiated after the Alberta Environment specified start date of January 1,
2002, and met the criteria detailed in Section 2.5 of this plan.



      PRODUCER
          1


      PRODUCER                                                 TERRA
                                                                                                         INDUSTRY
          2                                                    VERDE


      PRODUCER
          3



Figure 1: Aggregation relationship diagram

The map in Figure 2 illustrates the boundary between Parkland and Dry Prairie regions in Alberta. The Black
Chemozemics and Dark Gray Chemozemics, Dark Gray – Gray Luvisols represent Parkland, while the Brown
Chemozemics and Dark Brown Chemozemics represent the Dry Prairie region. Producers who have entered into
contract with Terra Verde have fields located in either region.




Source: Nolan, Sheila. “The Boundary Line between Parkland & Dry Prairie Zones – Alberta Carbon Offset Quantification Protocol for
Tillage System Management.” Alberta Agriculture & Rural Development/ Alberta Government.
http://www1.agric.gov.ab.ca/$Department/deptdocs.nsf/all/cl11708/$FILE/atpb.pdf.
Figure 2: Alberta Parkland/ Dry Prairie Boundary Map



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      Each Canada Ecozone (soil zone), ecoregion, and ecodistrict maps to a protocol area as demonstrated in Table 2.
      Terra Verde uses this information to assign Producer field(s) to a protocol area.

      Table 2: Designation of Protocol Areas within Canada’s Ecostratification Framework


      Protocol Area                        In Canada Ecozone                Ecoregions                       Ecodistricts

      Parkland                             Black Soil Zone, Boreal          136-156, 161-164                 358, 371, 375-377, 379-
                                           Plains, Lake Manitoba                                             381, 383, 386, 391, 573-
                                           Plain, Boreal Shield (AB,                                         766, 839-855, 998, 1016-
                                           SK, MB and NW Ont),                                               1019
                                           Montane Cordillera (AB)

      Dry Prairie                          Dark Brown Soil Zone,            157-160                          767-838
                                           Brown Soil Zone
      Source: Alberta Environment (AENV). “Quantification Protocol for Tillage System Management.” Specified Gas Emitters Regulation.
      Version 1.3. Province of Alberta, February 2008.



2.3   Aggregation Methodology
      The methodology described below, is also is illustrated in the process map appended in Appendix B.

      Terra Verde’s Data Entry Specialist assigns a Contract Number to each Producer application, based on the date of
      receipt. After third-party verification, consecutive numbers will also be assigned to the tonnes of carbon offsets
      applicable to each legal description.

      Information requested and received by Terra Verde from the Producer in the Application form, (a copy of which
      is in Appendix C) includes the following:
           • Producer signature or signature of the authorized Officer for the Producer
           • Contact information for Producer; name, address, phone number(s), fax number (if applicable), e-mail
               address (if applicable), date Application signed and GST number
           • The years the Producer chooses to contract their offsets with Terra Verde (a range from 2002 – 2007)
           • Tillage equipment description; model name and description, date of purchase
           • Till opener width
           • Till opener spacing
           • Packing used
           • Fertilizer application(s), including dates and types
           • Signature of Producer or authorized office signature for authorization and release of information

      The Producer completes an Election and Revocation of an Election between Agent and Principal Form (a copy of
      which is in Appendix C).

      The Producer also completes the Land Information Details (LID) form. The LID form (a copy of which is in
      Appendix C) details the following information:
          • Legal Description
          • Total Number of Acres
          • Number of Seeded Acres



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     •    Number of Chemically Fallowed Acres
     •    Number of Summer fallow, Pasture and Forage Acres
     •    Number of Irrigated Acres
     •    Rented / Owned (which refers to whether the land is rented or owned by the Producer). If the land is
          rented by the Producer, Terra Verde requests a Lease Addendum (a copy of which is in Appendix C).
          The Lease Addendum outlines the entitlement of the offsets and has the signatures of both the tenant and
          landlord.
     •    Rural Municipality (RM) or Municipal District (MD) name and number within which the acres are
          located to determine soil region. Terra Verde relies on the Producer’s information with respect to the RM
          or MD name and number provided, as to what soil region their land is located. If the information is
          missing or unclear, the subject legal descriptions are updated by obtaining information from the Alberta
          Agriculture and Rural Development website
          (http://www1.agric.gov.ab.ca/$department/deptdocs.nsf/all/sag10372), using the link “Online Soil
          Viewer”.

A completed application from the Producer comprises all applicable forms noted above. Once received, each
application reviewed by Terra Verde’s Data Entry Specialist. If the application is incomplete, the Producer is
contacted for additional information.

From the completed application, the Data Entry Specialist inputs all information into an Excel spreadsheet, the
Excel LID database, a copy of which is in Appendix C. This single Excel worksheet serves as a method of
gathering information from the Producer’s application.

The information in the Excel LID Database is further verified by conducting titles searches on a minimum of 10%
of the legal descriptions. The title search confirms ownership, and when the title was transferred to the producer,
land lord, or tenant. If the registered owner on the title is different from the Producer, the Specialist ensures that it
is the result of leased land and that the registered owner is the same as the individual/company documented in the
Lease Addendum that accompanied the Application. The Specialist documents in the Excel LID database who
conducted the search, when it was conducted, and its outcome. The Specialist also confirms that the address on
the Application is the same as that on the Land Title. If any discrepancies are identified, the Producer is contacted
to seek resolution. Hard copy files created during the title search are compiled and stored in a binder.

Any discrepancies that were identified during the verification of information in the Excel LID Database are
corrected by the Data Entry Specialist, then reviewed for accuracy and completeness by the Data Manager.

The Producer is then notified by the Director in the form of an acceptance note the following:

     •    The date on which their Application was received
     •    Confirmation that they have entered into a contract agreement with Terra Verde
     •    The results of the calculations determining how what portion of seeded acres qualified in each year they
          applied for
     •    The portions in their application that are not eligible for offsets, and Terra Verde’s reasons for their
          decision
     •    Information on the soil region the eligible acres that lie within
     •    The results of the calculation(s) of the total eligible acres in the contract multiplied by the applicable
          coefficient
     •    Notification that third-party verification will be taking place once the Contract is filled
     •    The marketing process will begin after third-party verification has been completed
     •    The Producer will receive the payment from Terra Verde within 60 days from the sale of their offsets




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        Upon aggregation of the target number of tonnes (200,000 tonnes), Terra Verde proceeds to third-party
        verification.

 2.4    Project Scope and Schedule
        The project will involve fields growing annual crops located in Alberta. The fields must be under no till or
        reduced till as defined in Table 1 for the period of January 1, 2002 to the present crop year.

2.4.1   Project Proponent
        Project Proponent - Terra Verde


        Contact                        Carol Karlonas

        Title                          Office Manager

        Company                        Terra Verde Emissions Credits Inc. (Terra Verde)

        Address                        700, 2103 – 11th Avenue, Regina, SK S4P 4G1

        Telephone                      306-347-8346

        Fax                            306-949-1965

        E-mail                         ckarlonas@terraemissions.com




 2.5    Project Eligibility
        The protocol will apply regardless of historical practices associated with the land or a producer. As noted in the
        Protocol, the following conditions in Table 3 must be met.

        Table 3: Conditions required for eligibility


        Criteria                                          Criteria Compliance

        Farms must be producing annual crops on           The Application requires the applicant to indicate the number of
        the applicable land as confirmed by an            seeded acres for each of the years for which the application is
        affirmation from the project developer and        relevant. The applicant warrants that the Credits have been (in the
        farm records.                                     case of past years) and shall be (in the case of the current year and
                                                          any future years) properly generated, earned and accrued in
                                                          accordance with the applicable protocols, and the Producer has done
                                                          all things necessary to generate the Credits.

                                                          The Application is checked first by the Data Entry Specialist, then
                                                          checked a second time by The Data Manager.

        The offsets shall occur in Alberta.               Legal land description (LLD) is recorded on information sheet.
                                                          Terra Verde personnel checks the LLD is within Alberta.




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Criteria                                          Criteria Compliance

Farms in the project must operate on the          Tillage practices are documented on the information sheet. This
applicable land in a no-till or reduced till      information sheet is reviewed and warranted to be accurate and
system as defined in this protocol as             executed by a designated representative of the producer.
confirmed by an affirmation from the
project developer and farm records.

The quantification of reductions achieved         Reductions are based on quantification methods in the Alberta
by the project is based on actual                 Quantification Protocol For Tillage System Management.
measurement and monitoring (except
where indicated in this protocol) as
indicated by the proper application of this
protocol.

The Project Start date for the purposes of        The Excel LID Database form (Appendix C) is designed to only
the Alberta Offset System is set at January       accept field years from 2002 to 2008
1, 2002.

Projects under the Alberta Offset System          The Excel LID Database form (Appendix C) is designed to only
will have a offset duration period of 8           accept field years from 2002 to 2008
years, with a possible extension of an
additional 5 years.

Real:                                             Offsets are quantified in accordance with the Alberta Quantification
                                                  Protocol For Tillage System Management.
An offset project must have specific and
identifiable actions that reduce or remove
GHGs.

Demonstrable and Quantifiable:                    Offsets are quantified in accordance with the Alberta Quantification
                                                  Protocol For Tillage System Management.
GHG reductions/ removals must be
calculated or measured according to
scientifically acceptable methods.

Under the proposed offset program,                There are no laws in Alberta that govern tillage practices.
reductions or removals must be
incremental to provincial regulations.

There must be clear, legal claim of the           Terra Verde will verify that the Producer owns the land or has the
greenhouse gas reductions or removals             legal right to claim the offsets.
achieved from a project.

An emission reduction or removal can only         The legal land description and the field year are recorded on the
be used once to create an emission offset in      Field Information sheet. Terra Verde conducts title searches on a
Alberta’s Offset System.                          minimum of 10% of the lands on each Application, to prove
                                                  ownership. This process also helps to avoid instances of double
                                                  counting. Any discrepancies are investigated and resolved.

An independent verifier must be able to           Emission reduction assertions are verified by Alberta Offset System
verify the reductions/ removals that are          Verifiers.
being claimed.




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      Offset Project Plan - Tillage System Management




 3 Inventory of Sources & Sinks
3.1   Inventory Baseline and Project Sources and Sinks
      The baseline and project sources and sinks inventory is detailed in the Alberta Environment Quantification
      Protocol for Tillage System Management (AENV 2008). As per Section 1.1 of the Alberta Environment Tillage
      System Management protocol, project developers do not have to prove their baseline at the project start date.

3.2   Relevant Baseline and Project Sources and Sinks
      The relevant baseline and project sources and sinks are outlined below. In the table, ‘B’ means ‘baseline’, and ‘P’,
      ‘project’.

      Table 4 – Baseline and Project Sources and Sinks


      Identified Sources & Sinks                    Description                                 Controlled/ Related/ Affected

      B9/P9 Pesticide Production                    Pesticide production may include
                                                    several material and energy inputs such
                                                    as natural gas, diesel and electricity.
                                                    Quantities and types for each of the
                                                                                                             Related
                                                    energy inputs would be contemplated to
                                                    evaluate functional equivalence
                                                    between the baseline and project
                                                    conditions.

      B3/P3 Seed Distribution (On-Site)             Seed would need to be transported from
                                                    storage to the field. The related energy
                                                    inputs for fuelling this equipment are
                                                    captures under this source & sink, for
                                                    the purposes of calculating the resulting
                                                    greenhouse gas emissions. Type of                       Controlled
                                                    equipment, number of loads and
                                                    distance travelled would be used to
                                                    evaluate functional equivalence
                                                    between the baseline and project
                                                    conditions.

      B7/P7 Fertilizer and Lime Distribution        Fertilizer and lime would need to be
      (On-Site)                                     transported from storage to the field.
                                                    The related energy inputs for fuelling
                                                    this equipment are captured under this
                                                    source & sink, for the purposes of
                                                    calculating the resulting greenhouse gas                Controlled
                                                    emissions. Type of equipment, number
                                                    of loads and distance travelled would be
                                                    used to evaluate functional equivalence
                                                    between the baseline and project
                                                    conditions.

      B11/P11 Pesticide Distribution (On-           Pesticide would need to be transported
      Site)                                         from storage to the field. The related
                                                    energy inputs for fuelling this                         Controlled
                                                    equipment are captured under this
                                                    source & sink, for the purposes of
                                                    calculating the resulting greenhouse gas



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Identified Sources & Sinks                    Description                                  Controlled/ Related/ Affected
                                              emissions. Type of equipment, number
                                              of loads and distance travelled would be
                                              used to evaluate functional equivalence
                                              between the baseline and project
                                              conditions.

B13/ P13 Soil Crop Dynamics                   Flows of materials and energy that
                                              comprise the cycling of soil and plant
                                              carbon and nitrogen, including
                                              deposition in plant tissue,
                                                                                                           Controlled
                                              decomposition of crop residues,
                                              stabilization in organic matter and
                                              emission as carbon dioxide and nitrous
                                              oxide
Source: Alberta Environment (AENV). “Quantification Protocol for Tillage System Management.” Specified Gas Emitters Regulation.
Version 1.3. Province of Alberta, February 2008.




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4 Quantification Plan
  Quantification of the reductions, removals and reversals of relevant sources and sinks for the greenhouse gases
  will be completed using the equations and methodologies outlined below. A listing of relevant emission factors is
  provided in Table 6. These calculation methodologies serve to complete the following three equations for
  calculating the emission reductions from the comparison of the baseline and project conditions.

  Equations8:

  Emission Reduction = Emissions Baseline – Emissions Project

  Emissions Baseline = Emissions Energy Use + Emissions Carbon Sequestration * Assurance Factor + Emissions Nitrogen

  Emissions Project = 0

  Where:

  Emissions Baseline = sum of the emissions under the baseline condition.

  Emissions Energy Use = component of emissions under SS’s B9 Pesticide Production, B3 Seed Distribution (On-
  Site), B7 Fertilizer and Lime Distribution (On-Site), B11 Pesticide Distribution (On-Site)

  Emissions Carbon Sequestration = component of emissions under SS B13 Soil and Crop Dynamics

  Assurance Factor = Factor to account for reversals due to tillage events. Relevant assurance factors are provided
  in Appendix B.

  Emissions Nitrogen = component of emissions under SS B13 Soil and Crop Dynamics

  Emissions Project = sum of the emissions under the project condition




  8
   Source: Alberta Environment (AENV). “Quantification Protocol for Tillage System Management.” Specified Gas Emitters Regulation.
  Version 1.3. Province of Alberta, February 2008.




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Table 5: Quantification Procedure9


1. Project/         2. Parameter/                 3. Unit                    4. Measured/                  5. Method                       6. Frequency            7. Justify
Baseline            Variable                                                 Estimated                                                                             measurement or
Sources &                                                                                                                                                          estimation and
Sinks                                                                                                                                                              frequency

                                                                                Project Sources & Sinks

P9 Pesticide
Production

P3 Seed
Distribution
(On-site)

P7 Fertilizer
and Lime
Distribution                                                                     Captured in the Baseline Adjusted Factors
(On-Site)

P11 Pesticide
Distribution
(On-Site)

P13 Soil and
Crop Dynamics


                                                                               Baseline Sources & Sinks

    B9 Pesticide                                                            Emissions Energy Use = ∑Area Till Practice y * EF Energy Use



9
 Source: Alberta Environment (AENV). “Quantification Protocol for Tillage System Management.” Specified Gas Emitters Regulation. Version 1.3. Province of Alberta, February
2008.



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1. Project/         2. Parameter/                 3. Unit                    4. Measured/                     5. Method                           6. Frequency               7. Justify
Baseline            Variable                                                 Estimated                                                                                       measurement or
Sources &                                                                                                                                                                    estimation and
Sinks                                                                                                                                                                        frequency
  Production
                    Emission Reductions
                    from Carbon                                                                                                                                              Quantity being
                                                      kg CO2E / yr                       N/A                               N/A                                 N/A
                    Sequestration/                                                                                                                                           calculated.
    B3 Seed         Emissions Energy Use
  Distribution
   (On-Site)        Area of Field under
                    Each Till Practice/ Area
                    Till Practice Y
                                                            ha                        Measured                                                              Continuous
  B7 Fertilizer
   and Lime
  Distribution
                    Reduction Factor For                                                                      Default factor based on
   (On-Site)
                    Relevant Till Practice in                                                                 project farm location, as
                    Relevant Area and                                                                         available at January 1 of
                    Geographic Zone / EF                                                                      the first year of the                                          As per NCGAVS
                                                    kg CO2E / ha / yr                Estimated                                                              Annually
 B11 Pesticide      Energy Use                                                                                project. Transition zones                                      process.
  Distribution                                                                                                should be characterized
  (One-Site)                                                                                                  based on the dominant
                                                                                                              soil zone.

 B13 Soil and                                                    Emissions Carbon Sequestration = ∑Area Till Practice y * EF 20 yr Linear SOC Coefficient
Crop Dynamics
                    Emission Reductions
                    from Carbon
                                                                                                                                                                             Quantity being
                    Sequestration/                    kg CO2E / yr                       N/A                               N/A                                 N/A
                                                                                                                                                                             calculated.
                    Emissions Carbon
                    Sequestration


                    Area of Field under
                    Each Till Practice / Area               ha                        Measured                                                              Continuous
                    Till Practice Y


                    Sequestration Factor For
                    Relevant Till Practice in
                    Relevant Area and
                    Geographic Zone / EF 10         kg CO2E / ha / yr                Estimated                Default factor based on                       Annually         As per NCGAVS
                    yr Linear SOC Coefficient                                                                 project farm location, as                                      process.
                                                                                                              available at January 1 of
                                                                                                              the first year of the
Terra Verde                                                                         12                        project. Transition zones                         PricewaterhouseCoopers LLP
                                                                                                              should be characterized
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1. Project/         2. Parameter/                 3. Unit                 4. Measured/                  5. Method                         6. Frequency         7. Justify
Baseline            Variable                                              Estimated                                                                            measurement or
Sources &                                                                                                                                                      estimation and
Sinks                                                                                                                                                          frequency
                                                                                                        based on the dominant
                                                                                                        soil zone.

                                                                        Emissions Nitrogen = ∑Area Till Practice y * EF N2O Coefficient

                    Emission Reductions
                    from Nitrogen Oxide                                                                                                                        Quantity being
                                                      kg CO2E / yr                   N/A                             N/A                         N/A
                    Reduction/ Emissions                                                                                                                       calculated.
                    Nitrogen


                    Area of Field under
                    Each Till Practice / Area               ha                   Measured                                                     Continuous
                    Till Practice Y


                    Reduction Factor For                                                                Default factor based on
                    Relevant Till Practice in                                                           project farm location, as
                    Relevant Area and                                                                   available at January 1 of
                    Geographic Zone / EF                                                                the first year of the                                  As per NCGAVS
                                                    kg CO2E / ha / yr            Estimated                                                    Annually
                    N2O Coefficient                                                                     project. Transition zones                              process.
                                                                                                        should be characterized
                                                                                                        based on the dominant
                                                                                                        soil zone.




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Table 6: Baseline Adjusted Emission Factors


Region        Practice     Baseline Adjusted Emission Factors

                                                   Sequestration                             Nitrogen                        Energy
                             Sequestration                               Nitrogen
                                                   of Carbon in                               Oxide           Energy        (t CO2E
                             of Carbon in                                 Oxide
                                                   Soil (t CO2E                             Reduction        (t CO2E         / acres)
                             Soil (t CO2E /                             Reduction (t
                                                      / acres)                              (t CO2E /           / ha)
                                   ha)                                  CO2E / ha)
                                                                                              acres)

Parkland         NT               0.355                 0.144                0.019              0.008          0.075          0.030

                 RT               0.020                 0.008                0.019              0.008          -0.010        -0.004

Dry              NT              0.1996                 0.081                0.005              0.002          0.030          0.012
Prairie
                 RT               -0.018               -0.007               -0.005             -0.002          -0.004        -0.002
Source: Alberta Environment (AENV). “Quantification Protocol for Tillage System Management.” Specified Gas Emitters Regulation.
Version 1.3. Province of Alberta, February 2008.
Note: These values will remain constant for the 2002 to 2012 crediting period, as indicated by verification for any
of these years.

Table 7: Assurance Factors by Region and Practice Type


Region                                        Assurance Factor

                                                           Reduced Till                                     No Till

Parkland                                                        87.5%                                        87.5%

Dry Prairie                                                     90.0%                                        92.5%
Source: Alberta Environment (AENV). “Quantification Protocol for Tillage System Management.” Specified Gas Emitters Regulation.
Version 1.3. Province of Alberta, February 2008.




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 5 Monitoring Plan
5.1   Data Collection Procedures
      Table 9 outlines the data collections procedures. The framework in the table mirrors the established outline in the Alberta Environment
      Quantification Protocol for Tillage System Management.

      Table 8: Data Collection Procedures


      1. Parameter/            2. Unit                  3. Measured/   4. Initial Information                   5. Frequency                6. Confirmation
      Variable                                          Estimated

      Area of Field            Acres                    Measured       The Producer records the area and the    At time of project          Terra Verde’s representative
      under Each Till                                                  LLD of the field under reduced-till or   initiation.                 will search title for a
      Practice / Area Till                                             no-till practice on the Land                                         minimum of 10% of lands in
      Practice Y                                                       Information Details form.                                            each Producer’s application
                                                                                                                                            to confirm ownership and
                                                                                                                                            acreage.




      Location of the          N/A                      Measured       The location of the field is obtained    At time of project          Terra Verde’s representative
      Field                                                            from the LLD, and recorded on the        initiation.                 will search title for a
                                                                       Land Information Details form.                                       minimum of 10% of lands in
                                                                                                                                            each Producer’s application
                                                                                                                                            to confirm ownership and
                                                                                                                                            acreage.

      Soil Region of the       N/A                      Measured       This information is submitted on the     At time of project          Terra Verde’s representative
      Field                                                            Land Information Details Form.           initiation.                 will search the Alberta
                                                                                                                                            Agriculture and Rural
                                                                                                                                            Development website –
                                                                                                                                            Online Soil Viewer if
                                                                                                                                            information is unclear or

      Terra Verde                                                            15                                                      PricewaterhouseCoopers LLP
Offset Project Plan - Tillage System Management




1. Parameter/            2. Unit                  3. Measured/   4. Initial Information                    5. Frequency             6. Confirmation
Variable                                          Estimated
                                                                                                                                    missing from the details
                                                                                                                                    form.

Tillage Practice         N/A                      Measured       Producer will provide the following       Every time offsets are   Terra Verde’s representative
                                                                 information on the Application:           declared through a       will determine the tillage
                                                                                                           GHG reduction            practice being employed
                                                                 Tillage Equipment: (make, model and       assertion to Alberta     following the definitions as
                                                                 description, date of purchase – include   Environment.             set out in Table 1:
                                                                 any changes that occurred for prior                                Definitions of Tillage
                                                                 years) (attach schedule if required)                               Systems in the Parkland and
                                                                                                                                    Dry Prairie Protocol Areas.
                                                                 Till Opener width: (in inches – for all                            Additionally in conjunction
                                                                 equipment)                                                         with the following
                                                                                                                                    information:
                                                                 Till Opener spacing: (in inches – for
                                                                 all equipment)                                                     - measure tillage equipment
                                                                                                                                      directly
                                                                 Packing used
                                                                                                                                    - equipment specifications
                                                                 Fertilizer application(s): (describe
                                                                 dates and types)                                                   - tillage, fertilizer, seeding
                                                                                                                                    and other farm records.

                                                                                                                                    Terra Verde’s representative
                                                                                                                                    will confirm that the
                                                                                                                                    Producer’s information is
                                                                                                                                    consistent and within
                                                                                                                                    accepted tillage protocols

Type of Crop             N/A                      Measured       The Producer indicates the number of      Every time offsets are   The designated
                                                                 seeded acres for each of the years for    declared through a       representative will confirm
                                                                 which the application is relevant, and    GHG reduction            that the crop is an annual
                                                                 warrants that the offsets have been       assertion to Alberta     crop based on the
                                                                 properly generated, earned and            Environment.             information recorded on the
                                                                 accrued in accordance with the                                     Information Details form,
                                                                 applicable protocols, and the Producer                             and based on the producer’s
                                                                 has done all things necessary to                                   representations and

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Offset Project Plan - Tillage System Management




1. Parameter/            2. Unit                  3. Measured/   4. Initial Information               5. Frequency            6. Confirmation
Variable                                          Estimated
                                                                 generate the Offsets.                                        warranties.

Reduction Factor         kg CO2E / ha/ yr         Estimated      Methodology will be as per Alberta   The frequency is once   Justification for use and
for Energy Use                                                   Environment’s Quantification         per assertion           method of derivation of
                                                                 Protocol for Tillage Management.     statement.              factors is included in the
Factor for                                                                                                                    Alberta Environment
Sequestration of                                                                                                              Protocol for Tillage System
Carbon in Soil                                                                                                                Management.

Reduction Factor
for Nitrogen
Oxide




Terra Verde                                                            17                                              PricewaterhouseCoopers LLP
        Offset Project Plan - Tillage System Management




   6 Quality Assurance and Control Plan
 6.1    Quality Assurance/ Quality Control (QA/QC)
        QA/QC procedures are applied to add confidence that all measurements and calculations have been made
        correctly. Terra Verde’s data management system includes both manual and automatic controls. These include:

             •    Protecting records of monitored data (hard copy and electronic storage), and securing the computer using
                  password protection.

             •    Checking data integrity on a regular and periodic basis (manual assessment and detection of outstanding
                  data/ records).

             •    Establish minimum experience and requirements for those in charge of the project and monitoring.

             •    Performing recalculations to make sure no mathematical errors have been made.

        Details of the data controls are appended in Appendix B.

 6.2    Management of Data Quality
        Terra Verde will establish and apply quality management procedures to manage data and information. Written
        procedures will be established for measurement tasks outlining responsibility, timing and record location
        requirements (Appendix A).

6.2.1   Record Keeping
        Record keeping practices will include:

             •    Electronically record values of logged primary parameters for each measurement interval

             •    Keep written logs of operations and maintenance of the project data system including notation of all
                  shut-downs, start-ups and process adjustments.

             •    Retain copies of logs and all logged data for a period of 7 years.

             •    Keep all records available for review by a verification body.

 6.3    Data Management System
6.3.1   Overview of Data Management System
        The following overview is illustrated in the process map appended in Appendix B.

        Terra Verde’s data management system utilizes separate Excel worksheets to store information about each
        Producer’s submitted application. A maximum of five different producers can be represented in the Excel Land
        Information Details Database (Excel LID Database), with each Applicant documented on a separate worksheet.
        The quantity of seeded acres and tonnes of emissions reduction for each producer is then compiled from the Excel



        Terra Verde Emissions Credits Inc.                        18
        Offset Project Plan - Tillage System Management




        LID Database to another Excel worksheet, titled the Summary Spreadsheet. This single worksheet has data from
        every Application submitted by every Producer.

        After reviewing, the information submitted by each Producer is entered into the Excel LID Database, and the
        offset value (CO2E) is calculated and recorded in the database. A letter to the Producer is sent to inform them of
        the status of their application. In addition, they are informed of the offset reduction their land(s) will generate. A
        process to check the land descriptions for validity (e.g. proper ownership) is undertaken and any required updates
        are made to the Excel LID Database. Information summarizing each Producer’s emissions reduction is also
        recorded in the Summary Spreadsheet. Once all Producer information is complete in the Summary Spreadsheet
        for the qualifying years, a GHG reduction assertion statement is prepared and signed by the Director of Terra
        Verde.

6.3.2   Tillage System Management Data Process Diagram
        Refer to Appendix B for data process diagram

6.3.3   Tillage System Management Controls Matrix
        Refer to Appendix B for system controls matrix




        Terra Verde Emissions Credits Inc.                        19
  Offset Project Plan - Tillage System Management




7 References
  Alberta Environment (AENV). “Quantification Protocol for Tillage System Management.” Specified Gas Emitters
  Regulation. Version 1.3. Province of Alberta, February 2008.

  Alberta Environment (AENV). “Additional Guidance for Interpretation of the Quantification Protocol for Tillage
  System Management for Carbon Offsets in Alberta.” Specified Gas Emitters Regulation. Version 1. Province of
  Alberta, February 2008.

  Alberta Environment (AENV). “Offset Credit Project Guidance Document.” Specified Gas Emitters Regulation.
  Version 1.2. Province of Alberta, February 2008.

  Alberta Environment (AENV). “Offset Credit Verification Guidance Document.” Specified Gas Emitters
  Regulation. Version 1. Province of Alberta, September 2007.




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Offset Project Plan - Tillage System Management




Appendix A – Terra Verde Procedure Manual
                                                    Phase 1
                                            New Producer Applications
     1. Mark receipt date on Page 1 of the Producer Application.
     2. Note years that the Producer would like to include to ensure that no pages are missing.
     3. Ensure Application is dated and properly signed.
     4. Check proper completion of GST Form (Part A and Part D).
     5. If land is leased, check for properly completed Lease Addendum(s).
     6. Check tillage equipment to indicate if land is zero till or reduced till.
     7. Call Producer regarding any deficiencies.
     8. Enter data into spreadsheet.
     9. Provide Carol with the spreadsheet to review including a copy of the original Application.
     10. Put name of Producer, the soil region that they are located in, the total # of acres and the total # of tonnes
          into Summary.
     11. Mark “CLK” into spreadsheet once Carol has checked copy.
     12. Make any post-check amendments to spreadsheet.
     13. Track deadline for acceptance by Terra Verde – put into calendar 40 days from receipt date.
     14. Carol to get acceptance from Director and Letter sent out to Producer, advising acceptance of their
          Application and their total eligible acres and tonnes.
     15. After final check is complete, set up file.
     16. Assign the file a contract #. Enter this contract # into the “Filed Contracts” summary database and link it
          to the actual spreadsheet for accessibility.



                                                         Phase 2
                                                  Due Diligence Checklist

     1.   Start with file Contract #1000.
     2.   Check that Producer Application is complete with all pages (Term and Conditions etc.).
     3.   Discard of any unnecessary pages, peg all correspondence, keep GST Form and Excel files loose.
     4.   Staple Application together and write Contract # on it with red pen.
     5.   Perform land title searches on every 10th legal description. Input Land Search #’s and Comments on
           spreadsheet (as of when land registered in owner’s name and identity of registered owner to confirm
           proper ownership). Flag any discrepancies.
     6.   Ensure # of acres on title is a least as much as # of seeded acres indicated on Application.
     7.   Check that the address on at least one title matches up with address on Application.
     8.   Insert titles into binders in the same order as in the spreadsheet with numbered tabs corresponding with
           Land Search #’s on spreadsheet.
     9.   Put file on Carol’s desk to check against spreadsheet.




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Offset Project Plan - Tillage System Management




                                                      Phase 3
                                                  Problem Solving
     1. In an instance where we find that the Producer is not the owner of the land that he is including in his
          Application, we take that legal description out of his entire application and do a replacement land title
          search.
     2. Any changes that are made to the spreadsheet will result in a second count of the totals, and then making
          the necessary change to the Summary and spreadsheet to reflect the changes. Katie does this and Carol
          reviews to make sure the new totals are the same as on the letter that will go out to the Producer advising
          of the change(s).
     3. If there is a joint owner on title, we will fax the application back to them to sign, as we will need both
          signatures on the documents.
     4. If we find that the Producer acquired the land in 2007, for example, but is claiming credits on the land
          from 2002 forward, we will take that land out of his application from 2002-2006 and replace any title
          searches.
     5. For rented land, if we find additional owners or different owners on the land title search then those
          indicated as the Landlord(s) on the Lease Addendum, we will take that land out of their application,
          unless it is easily rectified by the Producer.
     6. We correspond with the Producer via mail or fax to inform them of the circumstance and provide them
          with options to solve the issue, if it is something that can be solved (enclose an Offset Ownership
          Agreement to get the Prior owner to sign, enclose a Lease Addendum for the Landlord to sign if we
          conclude that the land is rented, or have any additional Landlord(s) sign a Lease Addendum).




Terra Verde Emissions Credits Inc.                        22
Offset Project Plan - Tillage System Management




Appendix B – Process Map and Control Matrix




Terra Verde Emissions Credits Inc.                23
Offset Project Plan - Tillage Management System



  Terra Verde - Process Diagram
  Tillage Management Offset System Projects
  Created: September 2008

                              Application Form
                               2008 Series II




                             Land Information
                             Details (LID) Form



                                                                                                     Submits the
                             Lease Addendum
          Producer




                                                           Completes all   Producer Application        completed
                              (applies only to
                                                             applicable         document          application to TV,
                                  leases)
                                                           documentation                          and retains a copy
                                                                                                   of the document
                                                                                                                                                                                                                                                                    Producer receives
                                Election and                                                                                                                                                                                                                       approved letter from
                              Revocation of an                                                                                                                                                                                                                         Terra Verde
                              Election between
                             Agent and Principal
                                 Form (GST
                                 Purposes)



                             Offset Ownership
                              Agreement (not
                             always applicable)




                                                                                                                                                                                                                             I         J      N
                                                                                                                                                           H
    Terra Verde Data Entry




                                                                                                                          D      G
                                                                                                                                                                                                                                      1. Confirms that the
                                                                                                                                                           Reviews 10%                   Compiles the results of the title          registered owner is the
                                            Verifies all      Contacts             Enters                                                                                                  search print-outs from the
                                                                                                  Calculates offset                                        (minimum) of                                                                    Producer.
                                         submissions for    Producer for        Application                                                                                               Alberta Agriculture & Rural
                                                                                                  (tonnes CO2E)            Updates Excel                       land                                                                  2. Confirms a match                                   Cont.
           Specialist




                                          completeness        missing/          information                                                                                                Development website in a
                                                                                                   reduction from          LID Database                    descriptions in                                                       between the address of the                               Page 2
                                         (See Appendix      incomplete        into Excel LID                                                                                                        Binder
                                                                                                      acreage                                               Producer’s                                                            registered owner with and
                                          A – Phase 1)      information          Database
                                                                                                                                                            application                                                           the Application submitted
                                                                                                                                                                                                                                        by the Producer
                                             A     Q

                                                                                                                                            - Referenced by contract number
                                             C     R                                                                                        - One worksheet per Producer
                                                                                                                                            and up to five worksheets per file
    Terra Verde Data




                                                                                                                                                                      Drafts the letter to
                                                                                                                       Verifies the Producer’s                           the Producer
        Manager




                                                                                                                           submission for                               accepting their                   Draft Letter to
                                                                                                                                                                                                                                                                        Signs the
                                                                                                                         completeness and                               application and                     Producer
                                                                                                                                                                                                                                                                          letter
                                                                                                                           accuracy (See                                communicating
                                                                                                                       Appendix A – Phase 1)                         offsets calculated by
                                                                                                                                                                          Terra Verde

                                                                                                                          B      E
    Terra Verde
      Director




                                                                                                                                                                                                 F           Approves
                                                                                                                                                                                                               the
                                                                                                                                                                                                            application




                                                                                                                                                                                                                                                        Denotes a control described in further detail in the Control
                                                                                                                                                                                                                                              ‘A’ to ‘Q’ Matrix.



Terra Verde Emissions Credits Inc.
Offset Project Plan - Tillage Management System



       Terra Verde - Process Diagram
       Tillage Management System Offset Projects
       Created: September 2008



                                                                                                                                                                                                                    Producer provides
                                                                                                                                                                                                                       resolution to
                Producer




                                                                                         Producer provides
                                                                                             resolution to                                                                                                            discrepancies
                                                                                           discrepancies                                                                                                          identified during Terra
                                                                                          identified during                                                                                                         Verde’s review of
                                                                                            Terra Verde’s                                                                                                            their submitted
                                                                                           review of their                                                                                                             information.
                                                                                              Application




                                                                                                                                                                                        M      Q
          Terra Verde Data Entry




                                                                                                                                            Enters information
                                                               Documents                                                                                                                Performs                                                    Prepares the
                                                                                                                                                about the
                                                                                                              Updates                                                 Summary            output                                                         GHG
                                                            discrepancies in                                                  Excel LID        Producer’s
                                        From                    Excel LID                                     Excel LID                                              Spreadsheet          stage                                                      reduction
                                                                                                                              Database       contract into the
                                                                                                              Database                                                                 verification                                                   assertion
                 Specialist




                                       Page 1                database (See                                                                      Summary
                                                             Appendix A –                                                                                                              procedures                                                    statement
                                                                                                                                              Spreadsheet
                                                             Phases 2 &3)



                                                                                                                                                                                         Identifies
                                                                                                                                                                                      discrepancies                                              Draft GHG reduction
                                                                                                                                                                                       in data, and                                              assertion statement
                                                                                                                                                                                      informs Data
                                                                                                                                                                                         Manager




                                                K       N                                                                 L                                      O
          Terra Verde Data




                                                      1. Confirms all reviewed Titles                                                                                 Verifies the       Contacts
                                                     against comments in Excel LID                                              Verifies                              information      Producer to
              Manager




                                                                  Database                                                      updated                              entered in the       resolve
                                                                                           Contacts the
                                                       2. Verifies that the registered                                        information                              Summary        discrepancies
                                                                                            Producer to
                                                           owner is the Producer                                                                                     Spreadsheet        identified.
                                                                                            resolve any
                                                    3. Confirms a match between the
                                                                                           discrepancies
                                                     address of the registered owner
                                                                                              identified                                                                                M      Q
                                                    with and the Application submitted
                                                              by the Producer
                Terra Verde Director




                                                                                                                                                                                                                                            P         Assertion
                                                                                                                                                                                                                                                     statement is
                                                                                                                                                                                                                                                      signed by
                                                                                                                                                                                                                                                       Director




                                                                                                                                                                                                                                                   GHG reduction
                                                                                                                                                                                                                                                 assertion statement




                                                                                                                                                                                                             Denotes a control described in further detail in the Control
                                                                                                                                                                                                   ‘A’ to ‘Q’ Matrix.




Terra Verde Emissions Credits Inc.
                                                                                          TV Control Matrix.xls




                                                                                                                          Control Objective
                                                                                                                          C: Completeness                      Control
                                                                                            Key                           A: Accuracy                         Frequency      Control Type
                                                                                          Control                         V: Validity                          M: Manual         D: Detective
    #    Control Objective                    Control Description                          (Y/N)         Responsibility   R: Restricted Access                A: Automatic       P: Preventive
                                                                                                                              C     A        V       Ra
        Ensure complete      The Data Entry Specialist confirms that the following
        information is       forms have been fully completed by the Producer:
        submitted by         - Land Information Details
        Producer.            - Application Form
                             - Lease Addendum
                             - Election and Revocation of an Election between
                             Agent and Principal Form
                             - Offset Ownership Agreement
                             If the Title ownership is joint between two or more
                             Producers, Terra Verde (TV) must receive a
                             signature from the joint partner(s). This may be in
                             the form of a fax application.                                            Data Entry
A                                                                                             N        Specialist         X                               M                  D
                             The Data Manager verifies that the following forms
                             have been filled out completed by the Producer:
                             - Land Information Details
                             - Application Form
                             - Lease Addendum
                             - Election and Revocation of an Election between
                             Agent and Principal Form
                             - Offset Ownership Agreement
B                                                                                             Y        Data Manager       X                               M                  D
        Confirm the          The Data Entry Specialist confirms that the tillage
        consistency          equipment noted in the Producer's application will
        between the          result in practices of no-till or reduced-till (as per the
        equipment used by    Quantification Protocol*).
        the Producer, and
        farming practice
        employed

                                                                                                       Data Entry
C                                                                                             N        Specialist                        X                M                  D
        Ensure data          The data is stored on a single non-networked
        storage is secure    computer which is backed-up nightly. The computer
        and recoverable      is secured using password protection.

D                                                                                             Y        Data Manager                              X        A                  P




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                                                                                        TV Control Matrix.xls




                                                                                                                        Control Objective
                                                                                                                        C: Completeness             Control
                                                                                          Key                           A: Accuracy                Frequency      Control Type
                                                                                        Control                         V: Validity                 M: Manual         D: Detective
    #     Control Objective                   Control Description                        (Y/N)         Responsibility   R: Restricted Access       A: Automatic       P: Preventive
        Ensure correct and    The Data Manager confirms that the data in the
        complete              Excel LID Database is complete and accurate based
        information is        on the forms submitted by the Producer. A decision
        entered into the      on the adequacy of supplied information is made by
        Excel LID Database    the Data Manager based on their knowledge of the
                              Quantification Protocol. The Data Manager initials in
                              the LID Database to sign-off that this verification has
                              been completed.
E                                                                                           Y        Data Manager       X      X               M                  D
                              The Director of Terra Verde reviews that application
                              for completeness and approves the application
                              before the acceptance letter is sent to the Producer.
F                                                                                           N        Director           X      X       X       M                  P
        Ensure each          The Data Entry Specialist assigns the file a contract
        carbon credit from number. This number will be used to track the
        each Producer        Producer's application.
        application is
        counted in the total
        and counted only
        once.


                                                                                                     Data Entry
G                                                                                           N        Specialist         X              X       M                  P




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                                                                                         TV Control Matrix.xls




                                                                                                                          Control Objective
                                                                                                                          C: Completeness             Control
                                                                                           Key                            A: Accuracy                Frequency      Control Type
                                                                                         Control                          V: Validity                 M: Manual         D: Detective
    #     Control Objective                      Control Description                      (Y/N)         Responsibility    R: Restricted Access       A: Automatic       P: Preventive
        To ensure that only    The Data Entry Specialist reviews the Legal Land
        lands that qualify     descriptions documented in the Excel LID Database
        for carbon credits     against the Alberta Land Titles system to confirm
        are entered into the   that the name of the registered owner matches the
        system.                application for the given year. The Specialist
                               performs this review with the goal of maintaining that
                               in a sample of 10% of the Land Titles searched, all
                               will be confirmed to be accurate. For this, if in the
                               first sample of 10% a Title is identified to be
                               discrepant, it is removed and an additional Title is
                               added to the sample. Terra Verde contacts the
                               Producer to resolve any discrepancies identified. In
                               the event that several discrepancies are identified,
                               the field or the entire set of offsets generated by the
                               Producer can be rejected by Terra Verde at their
                               discretion.                                                            Data Entry
H                                                                                            Y        Specialist          X      X       X       M                  D
                               The Data Entry Specialist confirms that the address
                               on at least one Title in the Excel LID Database
                               matches the address on Application (i.e. the
                               Producer lives on one of the land parcels). In the
                               event that a discrepancy is identified, the Data                       Data Entry
                               Manager investigates further until a resolution is                     Specialist & Data
I                              achieved.                                                     Y        Manager                                                       D
                               The Data Entry Specialist ensures that the number
                               of acres for the Title in the Alberta Land Titles
                               system is consistent with the number of seeded
                               acres indicated on the Producer's application.                         Data Entry
J                                                                                            Y        Specialist                         X       M                  D
                               The Data Manager confirms that the Data Entry
                               Specialist has taken the appropriate measures to
                               verify the Applicant's name and address. The Data
                               Manager initials in the LID Database to sign-off that
K                              this verification has been completed.                         Y        Data Manager                       X       M                  D




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                                                                                      TV Control Matrix.xls




                                                                                                                       Control Objective
                                                                                                                       C: Completeness             Control
                                                                                        Key                            A: Accuracy                Frequency      Control Type
                                                                                      Control                          V: Validity                 M: Manual         D: Detective
    #    Control Objective                    Control Description                      (Y/N)         Responsibility    R: Restricted Access       A: Automatic       P: Preventive
        Ensure updates to The Data Manager:
        existing database  1. Confirms that all updates to the Excel LID
        are accurate       Database have been made (i.e any communications
                           with the Producer resolving discrepancies).
                           2. Confirms that all totals were recalculated in the
                           LID Database and the Summary Sheet.
                           3. Initials in the LID Database, to sign-off that these
                           verifications were completed.
L                                                                                         Y        Data Manager        X                      M                  D
        Ensure the            The Data Entry Specialist will:
        accuracy and          1. Compare the 'Offset (Tonnes CO2E) / acre' data
        validity of all       from Terra Verde to the Alberta Environment tillage
        carbon credits.       protocol coefficients.
                              2. Report any discrepancies to the Data Manager

                              The Data Manager will:
                              1. Resolve the discpreancies.
                              2. Upon successful resolution of the discrepancies,
                              the Data Manager initials in the LID Database, to
                              sign-off that this verification has been completed.                  Data Entry
                                                                                                   Specialist & Data
    M                                                                                     Y        Manager                    X               M                  D
                              Data Entry Specialist will conduct the following data
                              processing stage checking:
                              1.Confirms a sample of fields against the map
                              "Boundary between Parkland and Dry Prairie" to
                              ensure that they have been correctly assigned to the
                              correct protocol area. This also ensures that the
                              correct offset coefficients have been used in the
                              calculations.
                              2. Report any discrepancies to the Data Manager

                              The Data Manager will:
                              1. Resolve the discpreancies.
                              2. Upon successful resolution of the discrepancies,
                              the Data Manager initials in the LID Database, to
                              sign-off that this verification has been completed.                  Data Entry
                                                                                                   Specialist & Data
N                                                                                         Y        Manager             X                      M                  D




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                                                                                     TV Control Matrix.xls




                                                                                                                      Control Objective
                                                                                                                      C: Completeness             Control
                                                                                       Key                            A: Accuracy                Frequency      Control Type
                                                                                     Control                          V: Validity                 M: Manual         D: Detective
    #   Control Objective                     Control Description                     (Y/N)         Responsibility    R: Restricted Access       A: Automatic       P: Preventive
                            The Data Manager verifies entries in the data listing
                            of all submitted field years to confirm that the
                            calculated offsets (tonnes CO2E) is the same as the
                            sum of all values in the Excel LID Database. Upon
                            successful resolution of the discrepancies, the Data
                            Manager initials in the LID Database, to sign-off that
                            this verification has been completed.
O                                                                                        Y        Data Manager        X                      M                  D
                            The Director confirms that the tonnage in the
                            assertion statement is the same as the total in
                            summary spreadsheet. The Director will reconcile
                            any discpreancy identified and signs the GHG
                            reduction assertion statement if all information is
P                           accurate..                                                   Y        Director            X              X       M                  D
                            The Data Entry Specialist reviews the land
                            descriptions in the Summary Spreadsheet of all
                            submitted field years to confirm that each field year
                            was submitted only once.

                            The Data Manager will resolve the discpreancies.
                            Upon successful resolution of the discrepancies, the                  Data Entry
                            Data Manager initials in the LID Database, to sign-                   Specialist & Data
Q                           off that this verification has been completed.               Y        Manager                            X       M                  D


Note: Quantification Protocol = Government of Alberta, Alberta Environment (AENV). 2008. Quantification Protocol for Tillage System Management, February 2008.




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Offset Project Plan - Tillage System Management




Appendix C - Methodology Documentation
The following documents can be found in the order outlined below:

     •    Application for Inclusion of Soil Carbon Offset Credits and Agreement for Marketing of Credits
     •    Instructions for filling out the Contract and Land Information
     •    Land Information Details (LID) Form
     •    Lease Addendum
     •    Excel LID Database Template
     •    Election & Revocation of an Election Between Agent and Principal Form




Terra Verde Emissions Credits Inc.                      24
                                                                                                                 Page 1
Terra Verde Emissions Credits Inc.
Agricultural Carbon Credit Program
700, 2103 – 11th Avenue,
Regina, SK S4P 4G1                                               Terra Verde Receipt Date: _____________________

                                        2008 SERIES II
_____________________________________________________________________________________________

                   APPLICATION FOR INCLUSION OF SOIL CARBON OFFSET CREDITS
                     (the “Credits”) and AGREEMENT FOR MARKETING OF CREDITS
_____________________________________________________________________________________________
1.     The undersigned (the “Producer”) requests that Terra Verde Emissions Credits Inc. (“Terra Verde”) act as agent
       for the Producer to market Credits applicable to and arising on the Lands described in the attached Details Sheet
       and for the years noted therein, all on the terms set out herein.
2.     The Producer agrees that the Terms and Conditions for the Series II Contract as published on Terra Verde’s
       website (the “Terms”) apply to and form part of this Agreement. The Producer may withdraw this application
       after 45 days have elapsed from the date Terra Verde first receives the completed application, but not after
       acceptance of the application by Terra Verde. Upon acceptance, a binding contract exists with Terra Verde.
3.     The Producer makes the representations and warranties to Terra Verde set out in the Terms. The Producer
       acknowledges that markets for the Credits vary depending on the number of years chosen and that access to
       certain markets may be limited as a result. The Producer will at all times comply with requirements and
       conditions applicable to the market on which the Credits are traded.
4.     Terra Verde will advise the Producer in writing of acceptance of the application. Terra Verde shall calculate the
       possible Credits on the Lands for the years selected by the Producer, and advise the Producer in writing from
       time to time.
5.     Terra Verde shall use all reasonable efforts to market the Producer’s Credits.
6.     In the event that the Producer wishes to include more land in this agreement, the Producer may apply to include
       such additional land in the contract with Terra Verde. If accepted by Terra Verde, the terms relating to the
       Credits on such additional land shall be such terms as are then available for Credits.
7.     Terra Verde shall be paid a commission of 15% of the Gross Selling Price for the Credits, to be deducted with
       GST thereon from the sales proceeds with such other expenses set out in the Terms. Terra Verde shall pay the
       Producer within 60 days of the sale of the Credits and receipt of payment in releasable form from the
       purchaser(s). The Credits may be pooled and sold at different times and on different terms. Partial payments
       will be made to the Producer if portions of the Credits are sold at different times.



_________________________________                                         ________________________________

Producer (or authorized officer) signature(s)                 C/S         Witness (if Producer is an individual)


Terra Verde hereby accepts the Application by the Producer and the specified Credits of the Producer and agrees to
market such Credits for the Producer on the terms and conditions specified in this Application and Agreement.
Terra Verde Emissions Credits Inc.
Per:                                                         Date:



10/03/2008
                                                              DETAILS SHEET

                                                                                                                                 Page 2

1.

 Producer Name:              __________________________________ (the “Producer”)               Phone:              Cell:
                             Contact Name: _________________________________                   ________________    ________________
 Mailing Address:            _____________________________________________                     Fax: ____________   _________________
 E-mail Address:             ________________________________________________                  Date:               GST#
                                                                                               _______________     _________________



2.

 The Producer applies to have the following years included in the Application and Agreement*:
 ___ 2002    ___ 2003 ___ 2004 ___ 2005 ___ 2006 ___ 2007
 Future Calendar years for which Credits are included in this application: (please specify)
 ___ 2008    ___ 2009 ___ 2010 ___ 2011 ___ 2012                    Name of Crop Insurance Corporation: ______________________

* Please note that the markets that your Credits may qualify for will be affected by the years that you include in this Application.

3.

 Tillage Equipment: (make, model and description, date of           ________________________________________________________
 purchase – include any changes that occurred for prior             __________________________________________________________
 years) (attach schedule if required)
                                                                    ________________________________________________________
 Till Opener width: (in inches – for all equipment)                 __________________________________________________________
 Till Opener spacing: (in inches – for all equipment)               __________________________________________________________
                                                                    ________________________________________________________
 Packing used:                                                      __________________________________________________________
                                                                    ________________________________________________________
 Fertilizer application(s): (describe dates and types)              __________________________________________________________
                                                                    ________________________________________________________
 Additional Information                                             ________________________________________________________
                                                                    ________________________________________________________

Please attach copies of your seeded acreage reports, if available, for all years included in this application.

AUTHORIZATION FOR RELEASE OF INFORMATION: The Undersigned hereby authorizes the above named Crop Insurance
Corporation and its successors or assigns to release any information within said corporation’s possession, power or control pertaining to
the contract number(s) between the Undersigned and said corporation including, but not limited to, any and all information which said
corporation may have with respect to the agriculture operations of the Undersigned to Terra Verde and its lawful representatives,
agents, employees, officers and contracting parties. This authorization is irrevocable for all contract years included in the agreement
between the Undersigned and Terra Verde specified above unless otherwise terminated in writing by Terra Verde and the Undersigned.

_________________________________                                                       ________________________________

Producer (or authorized officer) signature(s)                            C/S            Witness (if Producer is an individual)


10/03/2008
                                           SERIES II CONTRACT - TERMS AND CONDITIONS



1. Defined Terms:                                                                      earned and accrued in accordance with the applicable protocols, and
                                                                                       the Producer has done all things necessary to generate the Credits.
In the agreement between the Producer and Terra Verde, the following
terms shall have the following meanings:                                         3. Producer’s Covenants: The Producer agrees that the Producer:
“Agreement” – means the Application by the Producer and upon
acceptance the agreement with these Terms.                                       (a)   Will comply with all project requirements to generate, record and
“Credits” – means carbon offset credits owned by the Producer or to                    verify (or enable the completion of the verification of) the Credits on
which the Producer is legally entitled, as determined in accordance with               the Lands.
applicable protocols and procedures adopted or applied by Terra Verde            (b)   Will permit Terra Verde and its representatives full access to the
from time to time, which Credits are transferred to Terra Verde pursuant to            Lands, premises, books and records, data and information relating to
this Application and Agreement.                                                        the Lands, the Producer’s farming operations and the Credits at any
“Details Sheet” – means the Details Sheet completed by the Producer as                 time, for the purposes of verifying the Credits and the Producer’s
part of the application and agreement specifying the Lands and farming                 obligations under the Agreement.
particulars.                                                                     (c)   Will immediately notify Terra Verde in writing of any change in
“Gross Selling Price” – means the total purchase price paid to Terra                   respect of the Lands where such change does or could reasonably be
Verde in respect of the sale(s) of all of the Credits of the Producer, without         expected to affect the integrity, existence, creation of the Credits or
any deduction for commissions or other costs incurred by Terra Verde in                the ability to verify, aggregate, market and dispose of the Credits.
respect of such sale or sales.                                                         The Producer shall be liable for and shall pay Terra Verde the
“Lands” — means the lands of the Producer that are included in this                    amounts, if any, that would be refundable to Terra Verde as a result
Application and Agreement.                                                             of such change and any damages incurred by Terra Verde as a result
                                                                                       of such change, subject to the terms hereof.
“Net Sale Proceeds” – means the Gross Selling Price for the Producer’s
Credits, less all deductions therefrom as set out in paragraph 5 hereof.         (d)   Will notify Terra Verde of any bona fide arm’s length change of
                                                                                       ownership or disposition of the Producer’s interest in the Lands, and
“No-till" means:                                                                       Terra Verde shall retain the right to aggregate and market the Credits
(a) in respect of the Alberta Specified Gas Emitters Regulations, farming              for the years up to and including the year of such disposition and for
     practices where there are no more than two passes with low-                       any Credits for subsequent years which have been sold by Terra
     disturbance openers (up to 33%) or only up to 1 pass with a slightly              Verde on a futures sale. Terra Verde will consider a request by the
     higher disturbance opener (up to 40%), with discretionary tillage of              Producer to substitute acceptable Credits from other lands of the
     up to 10% (being up to 10% of the surface area of a single                        Producer. On such sale, Terra Verde will release the Producer for
     agricultural field that is cultivated to address a specific management            subsequent years, if the Producer pays to Terra Verde any costs,
     issue), with no fall tillage and no cultivation on summerfallow.                  claims or damages suffered by Terra Verde as a result of such sale
     Discretionary tillage of up to 10% is permitted annually to address               (other than its foregone commissions for any years after such sale
     specific management issues;                                                       unless part of a futures sale as stated above). The Producer shall not
(b) in respect of any other market, the standards and definitions of "No-              transfer or dispose of any rights to Credits generated in years prior to
    Till" proclaimed from time to time by the applicable regulatory body               or including such disposition without the prior written consent of
    or exchange for the market or jurisdiction in which the Credits are                Terra Verde.
    being sold, or as specified by the purchaser(s) of the Credits.              (e)   Upon notification sent by Terra Verde to the Producer of the
These standards are subject to amendment from time to time.                            acceptance of the Credits by Terra Verde, title to the Credits are
                                                                                       transferred fully to Terra Verde and it shall acquire all of the
                                                                                       Producer’s right, title and interest in the Credits, with full right,
2. Representations and Warranties:            The Producer represents and              power and authority to convey title to the Credits to a purchaser or
warrants to Terra Verde that:                                                          purchasers thereof. Any disposition, transfer or assignment of the
                                                                                       Credits by Terra Verde shall be fully binding upon the Producer, and
                                                                                       shall be a complete transfer of all legal rights associated with the
(a)   The Producer owns the Lands on which the Credits are generated or                mitigation of greenhouse gases that relate to the quantity and time
      has legal right, title and ownership of the Credits for leased Lands.            periods associated with the Credits.
(b)   The Producer has not disposed of or sold the Credits to any other          (f)   Terra Verde shall have the sole ability, power and discretion to
      party, nor entered into any other agreement by which the Producer is             dispose of the Credits, subject to the terms of this Agreement and to
      obligated to sell the Credits and has full and sufficient power and              the Minimum Price if applicable to such Credits.
      authority to enter into this Agreement and to perform all obligations      (g)   The Producer shall comply will all rules, regulations, protocols and
      under the this Agreement.                                                        procedures as exist from time to time with respect to the Credits, the
(c)   The Credits are free and clear of all liens, claims or encumbrances of           creation or generation or verification thereof.
      any nature and kind.                                                       (h)   The rights and interests of the Producer arising hereunder may not be
(d)   The Credits have been (in the case of past years) and shall be (in the           assigned or transferred without the prior written consent of Terra
      case of the current year and any future years) properly generated,
        Verde, which consent shall be solely within the discretion of Terra
        Verde.


 4. Terra Verde’s Covenants: Terra Verde agrees that:                               7. Remedies: Upon default by the Producer, Terra Verde:
 (a) It shall use its best efforts to develop markets for the Credits and to
        market the Credits for the benefit of the Producer at reasonable            (a) may terminate this Agreement or refuse to market Credits for the
        market prices.                                                                    Producer, and Terra Verde may elect to retain any Credits from the
                                                                                          Producer that have not been sold or disposed of, choosing to market
 (b)    In the event of new protocols or enhanced protocols that affect the
                                                                                          them in such way or ways as Terra Verde may in its absolute
        Producer, Terra Verde shall where permitted give the Producer the
                                                                                          discretion choose, withholding payment to the Producer for any
        benefit of those amendments/protocols, including the generation of
                                                                                          Credits until all damages or other amounts payable by the Producer
        more Credits for the Producer from the Lands.
                                                                                          have been determined, and paid or deducted from amounts payable to
 (c)    It shall receive the proceeds of sale of the Credits in trust for the             the Producer;
        Producer in a trust account for the benefit of the Producer and the
        other producers of Credits.
                                                                                    (b) may continue with the Agreement, but may withhold all further
 (d)    It will not dispose of the Credits unless the average Gross Selling               payments to the Producer until all damages or other amounts payable
        Price per Credit exceeds the Minimum Price, if applicable, unless the             by the Producer have been determined and paid or so deducted;
        Producer otherwise agrees to such sale in writing.
                                                                                    (c) may set off amounts payable to the Producer against amounts payable
                                                                                          by the Producer, and Terra Verde may estimate the amounts that may
 5. Deductions from Gross Selling Price: There shall be deducted from                     be payable, and withhold such amounts pending determination of the
 the Gross Selling Price for the Credits:                                                 amounts payable to Terra Verde;
                                                                                    (d) may pursue any other legal remedies available to it.
(a)    the commission payable to Terra Verde;                                       No right or remedy shall exclude any other right or remedy provided at law
(b)    the average cost of verification for the Credits on a pooled or              or in equity. All rights and remedies conferred upon Terra Verde hereunder
       aggregated basis;                                                            or existing at law, in equity or by statute or otherwise, may be enforced
                                                                                    concurrently.
(c)    in the event of any unusual or extraordinary verification required in
       respect of the Producer due to any factors that are related to the actions
       of the Producer, the costs of such additional verification requirements      8. Miscellaneous Provisions:
       (which additional verification costs may be attributed solely to the
       Producer);                                                                   (a)   Time shall be of the essence of this Agreement.
(d)    the amount of any deposit or other payments that have been made by
       Terra Verde to the Producer, including but not limited to any Initial
                                                                                    (b)   This Agreement may be executed in several counterparts, and such
                                                                                          counterparts together shall constitute one and the same instrument,
       Payment, if any;
                                                                                          and this Agreement may be transmitted by facsimile or such similar
                                                                                          device and the reproduction of signatures by facsimile or such similar
(e)    any GST or other taxes payable in respect of the Credits, the sale                 device will be treated as binding as if originals.
       thereof and the services provided by Terra Verde hereunder; and
                                                                                    (c)   The rights hereunder shall not be assignable without the written
(f)    any other amount owing to Terra Verde by the Producer, including but               consent of the other party, provided that nothing herein shall affect
       not limited to the amount of any claim by Terra Verde against the                  Terra Verde’s ability to dispose of the Credits in the course of
       Producer for any claims or matters relating to other or prior emissions            marketing the Credits.
       credits of the Producer that Terra Verde has marketed for the                (d)   This Agreement constitutes the entire agreement between the parties
       Producer.                                                                          hereto with respect to the aggregation of the Producer’s Credits by
                                                                                          Terra Verde, and supersedes all prior agreements, representations,
 6. Default: The Producer shall be in default hereunder:                                  warranties, statements, promises, information, arrangements and
                                                                                          understandings, whether oral or written, express or implied, with
 (a)    if the Producer fails to perform any of the undertakings or obligations           respect to the Credits.
        made by the Producer hereunder or under any other agreement with            (e)   Any amendments to this Agreement shall be in writing.
        Terra Verde;
 (b)    if any of the representations, warranties or covenants hereunder are        (f)   If the Producer is unable in any year covered by the Agreement to
        not true or are inaccurate or incorrect;                                          generate and earn the Credits due to an act of God (such as a fire or
                                                                                          another weather related event) where the Lands have to be worked
 (c)    if the Producer fails or threatens to fail to farm the Lands in a manner          and as a result, the Credits are not generated, Terra Verde will release
        that will generate or create the required Credits under the applicable            the Producer for any Credits that cannot be generated during that year
        protocol or protocols, or breaches any other obligation, rule or                  and any year where Credits cannot as a result be generated.
        protocol relating to the Credits, arising under this Agreement or by
        virtue of any rules, regulations or conditions imposed or applicable        (g)   The parties shall provide such further and other agreements, deeds,
        from time to time under any authority, exchange or agency governing               instruments and documents as may be required to give full force and
        the creation, marketing or trading of the Credits;                                effect to the terms of this Agreement and the transactions to be
 (d)    if the Producer fails to pay to Terra Verde any amounts payable to                undertaken hereunder.
        Terra Verde by the Producer however arising.
Instructions for filling out your Contract and Land Information Details
Please use the Schedule for Land Information and Details to provide us with the relevant information for your zero till lands during each
applicable year that you are enrolling in our Terra Verde Contracts.

Step 1: Review and sign Page 1 of Contract.

Step 2: Review and fill in boxes 1, 2 and 3 on Page 2 of Contract. Sign bottom of Page 2.

Step 3: Fill in the legal description of each parcel of land that is included in your application in Box 1 (brief legal description will suffice,
e.g. NW 1 – 1 – 1 W1).

Step 4: Fill in the number of total acres on each parcel of land in Box 2. This is the total number of acres.

Step 5: Fill in the number of seeded acres on each parcel in Box 3.

Step 6: Fill in the number of chem. fallow acres on each parcel in Box 4. Acres that have been chem. fallowed will not be eligible for
generation of offsets in the year that they were chem. fallowed.

Step 7: Fill in the number of summer fallow, pasture and/or forage acres in each parcel in Box 5. Please denote by (SF) for summer fallow,
(P) for pasture or (F) for forage. Acres that have been summer fallowed will not be eligible for generation of offsets in the year that they
were summer fallowed.

Step 8: Fill in the number of irrigated acres on the parcel in Box 6.

Step 9: If you rented the parcel in the year, put a checkmark or mark “R” in Box 7. We will assume the parcel was owned if this is left
blank.

Step 10: Fill in the name and number of the Rural Municipality (R.M.) or Municipal District (M.D.) for each parcel in Box 8 (or put all
parcels in each R.M. or M.D. together and mark accordingly). If you know whether the land is in the Parkland or Dry Prairie soil regions,
put a “P” or “DP” accordingly (this information is not mandatory).

We need an information sheet for each year that you are enrolling in a Terra Verde Contract. But to make it easier for you to complete the
form, here are some suggestions:

Hint 1: If the information is the same for several of the years you are enrolling, fill in the form once, and complete the years for which the
information applies. We will then know that the data applies to each stated year.

Hint 2: If the land descriptions and some of the details are the same each year (but other information changes), fill in that information that
does not change and then make a photocopy before filling in the year and the other information specific to that year.

Hint 3: If you sold land in the relevant year, compared to a prior year that you enrolled with Terra Verde, include the land that was sold in
the list, but strike it out by drawing a line through it. That tells us you sold that parcel. If you acquired new land (owned or leased), please
add it to the list, and write “New” beside the legal description for that parcel. Here is an example of how the information might look

For Example:
                       1                              2              3              4                5                  6               7           8

 Legal Description                              Total No. of   No. of Seeded   No.      of   No. of Summer         No.       of       Rented/   RM or MD
                                                Acres          Acres           Chem          fallow       (SF),    Irrigated                    (Name and
                                                                               Fallow        Pasture        (P),   Acres              Owned      Number)
                                                                               Acres         Forage (F) Acres

 NW 12-26-14 W3                                 158            127             20            0 SF                  60             R             Big Hill,
                                                                                                                                                #342
                                                                                             15 P


Thank you again for choosing Terra Verde. If you have any questions regarding your application or completing this Information Sheet, please
contact us at (866) 949-1962 or visit our website, www.terraemissions.com.
Producer Name: _______________________________________

Contracted Year: 20_____


Page: ________

                                                        Land Information Details
 Name: (full business or corp.   _______________________________________________________                            Phone:          ________________________
 name, if applicable)
                                 Contact (if different): _____________________________________                      Cell:           ________________________

 Mailing Address:                _______________________________________________________                            Fax:            ________________________

                                 _______________________________________________________

 E-mail Address:                 _______________________________________________________                            Date:           ________________________

INCLUDE ALL LAND OWNED OR RENTED
                          1                               2               3              4                      5                   6          7            8

 Legal Description                                   Total No. of   No.       of   No.       of   No.      of       Summer    No.       of   Rented   RM or MD (Name
                                                     Acres          Seeded         Chem.          fallow              (SF),   Irrigated        /       and Number)
                                                                    Acres          Fallow         Pasture       (P)    and    Acres          Owned
                                                                                   Acres          Forage (F) Acres




 For Office Use Only
Producer Name: _______________________________________

Contracted Year: 20_____


Page: ________

                                               Land Information Details Continued
 Name: (full business or corp.   _______________________________________________________                            Phone:          ________________________
 name, if applicable)
                                 Contact (if different): _____________________________________                      Cell:           ________________________

 Mailing Address:                _______________________________________________________                            Fax:            ________________________

                                 _______________________________________________________

 E-mail Address:                 _______________________________________________________                            Date:           ________________________

INCLUDE ALL LAND OWNED OR RENTED
                          1                               2               3              4                      5                   6          7             8

 Legal Description                                   Total No. of   No.       of   No.       of   No.      of       Summer    No.       of   Rented   RM or MD (Name
                                                     Acres          Seeded         Chem.          fallow              (SF),   Irrigated        /        and Number)
                                                                    Acres          Fallow         Pasture       (P)    and    Acres          Owned
                                                                                   Acres          Forage (F) Acres




 For Office Use Only
                                                                            Excel LID Database Template


                                                                                                                                                                 Check
                                                                                                                                 For completeness:        After Searches:       Final: 
Contract #
                                                                                                                                                          Contract Years
    Registered Owner              Contact Name               Address                  Phone               Fax           Email        2002    2003     2004 2005 2006           2007       2008
                                                                                                                                                                                             
      Referred By:                                               
 
    Tillage Equipment            Width       Spacing       Packing Used            Fertilizer App               GST #                                       Comments
                                                                                                                   
                                                                                                                                  
                                    ZERO TILL                                                                                     
                                                                                                                                  

Year: 2002
                                                               # of Summer 
                                             # of  # of Chem                                                        RM or MD                            Land 
                               Total # of                       Fallow (SF),   # of Irrigated           Rented/                      Dry Prairie/     
    Legal Description                      Seeded  Fallowed                                                         (Name and                          Search            Comments
                                 Acres                        Pasture (P) and      Acres                Owned                         Parkland
                                            Acres    Acres                                                           Number)                              #
                                                              Forage (F) Acres




       Terra Verde Emissions Credits Inc.