ARCHIVE - AB RESOURCES AND CARBON CREDITS

PRESS RELEASE

POC: CRST Public Relations

Rock LeBeau

(605)964-8308

For immediate release March 25, 2005

AB RESOURCES AND CARBON CREDITS

Carbon credits are units of measure that represent the natural ability of plants and soil to absorb carbon, in the form of carbon dioxide, from the air. One carbon credit is equal to one ton of carbon being absorbed by plants and soil.

International environmental laws require polluters who dump carbon dioxide into the air to buy or lease “carbon credits” to prove that they are doing their part to take carbon from the air.

When we lease carbon credits, we are leasing products that happen naturally on the land, not the land itself. It’s like selling a lease on sunshine’s ability to heat the land. It is already happening, and it will still happen whether we lease it or not, but some company somewhere is willing to pay us for it in order to satisfy our environmental laws. Leasing “carbon credits” is getting money for nothing.

In 2003 tribal member Lyle Anderson, partnered with two men in Wyoming, Paul Baker and Rueben Ritthaler, to start AB Resources. The company uses very precise computer modeling to measure exactly how much carbon our Tribal lands absorb. They also promote grazing rotation, which maximizes carbon absorption, thus maximizing the Tribe’s carbon credits.

This agreement leased the carbon credits from Tribal land on the Reservation to AB Resources until 2008. AB Resources now acts as a broker for the Tribe. They lease the carbon credits to companies who need them, and give the Tribe 85% of the net income, after taking 85% of AB Resources’ expenses out of the gross income. The agreement also requires AB Resources to submit quarterly reports on their progress and activities to the Chairman’s office, which they have done.

The agreement also allows AB Resources and its agents, meaning Lyle Anderson and his employees, to take carbon samples of Tribal land in order to measure the rate of carbon absorption. A carbon sample is a tube of soil about an inch and a half wide and six inches long. However, to date AB Resources hasn’t done any sampling because data from the Farm Service Agency and the Department of Agriculture has been good enough for their computer models.

Other than carbon sampling the agreement does not affect the land at all, except that if the Tribe maximizes the amount of carbon in the soil, the soil will hold moisture more effectively. This will help farmers and ranchers make it through drought years. Carbon-rich soil will grow the same crop on half as much rainfall as carbon-depleted soil.

The AB Resources agreement does not lease any Tribal land or any other land on the Reservation. It only leases “carbon credits” which is a measure of the land’s ability to absorb carbon. It does not allow anyone other than AB Resources and its agents, meaning formal representatives or employees, to enter Tribal land for any reason.

To date, not much has happened. AB Resources is negotiating one general lease of 100,000 carbon credits to a company in New York, but it’s not finalized. The price of carbon credits vary from $1 to $7 per credit. Lyle hopes that the precise computer modeling will help AB Resources get a higher price per carbon credit. The Tribe will receive 85% of the lease revenue after deducting AB Resources’ expenses. Lyle Anderson is happy to explain his business to Tribal members or have them observe his work. He also expects to hire and train a few people as the business gears up.

AB resources have nothing to do with Canada. “AB” is the abbreviation for the Canadian Province of Alberta, so a search on the Internet for “AB Resources” will bring up information about Alberta. AB Resources is a Tribal member-owned business that has nothing to do with Canada. It’s called AB Resources because the main partners’ names are Anderson and Baker.

Furthermore, AB Resources has nothing to do with radioactive material. AB Resources’ runs its computer models with plant, soil, and weather data from the Farm Service Agency and the Department of Agriculture. Lyle does not bring anything on or off the Reservation, and although Lyle is allowed to sample the carbon level in the soil on tribal lands, he has not yet done so and expects he will not need to.

The Tribe’s Environmental Protection Department has checked out several rumors put out by Kevin Meagher, and so far there has been no truth to them. First of all, the radioactive material buried in Cherry Creek turned out to be an old cistern. Second of all, the two stock dams filled with barrels of nuclear waste built in the middle of the night turned out to be a dugout dam, and a stock dam built during regular work hours under the supervision of Tribal engineer Jayme White Eyes. Last but not least, radiation testing of the Upper Elementary School and the Oti Kaga housing project by an independent company came up negative.

If a Tribal member has a concern, please contact the Tribal Environmental Protection Department at 964-6558 or your Council Representative.

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