6.0 Sale of CO2 to EOR

Pioneer would not have had stake (planning, permitting, ownership or operation) in any aspect of the EOR field, nor would EOR customers have ownership or operational responsibilities for the CCF, the pipelines or the sequestration field.

The EOR element added a key revenue stream to the Project by virtue of selling the CO2 product to the EOR customer and the generation of emission reduction instruments for CO2 sequestered at the EOR site. Pioneer was to derive benefit from all emissions reduction instruments generated which meant that the value of these instruments would remain constant for Pioneer whether carbon was sequestered on-site or whether CO2 was sequestered through its use in EOR.

The Project expected sales of up to 1 million tonnes/year of CO2 beginning in late 2015 to the EOR customer, generating revenues expected to be in the range of $300 million over a 10 year operating period.