Photo by US Fish and Wildlife Service
Financially Profitable
We estimated that a case study bank would be financially profitable and sell out of credits within 2 years. To test the impact of various assumptions, we conducted a multiple scenario analysis varying distance buffers, values in our habitat quantification tool, and oil and gas development projects, and found that every scenario provides positive returns to APR, selling out of credits within 1 to 4 years.
We estimated that a case study bank would be financially profitable and sell out of credits within 2 years. To test the impact of various assumptions, we conducted a multiple scenario analysis varying distance buffers, values in our habitat quantification tool, and oil and gas development projects, and found that every scenario provides positive returns to APR, selling out of credits within 1 to 4 years.
Market Share of 31%, Credit Price $236
Applying the habitat quantification method to the White Rock property, we found an average habitat functionality of 63%, generating 5,573 mitigation credits. Applying the habitat quantification method to properties that have received grants from a state grant program offering landowners funding for the establishment of conservation easements, we project that the statewide mitigation market will initially produce 17,837 credits. This grant program also allowed us to estimate the price per credit, since the State of Montana expects to recoup its expenses through credit sales from these same properties.
Applying the habitat quantification method to the White Rock property, we found an average habitat functionality of 63%, generating 5,573 mitigation credits. Applying the habitat quantification method to properties that have received grants from a state grant program offering landowners funding for the establishment of conservation easements, we project that the statewide mitigation market will initially produce 17,837 credits. This grant program also allowed us to estimate the price per credit, since the State of Montana expects to recoup its expenses through credit sales from these same properties.
Habitat Quantification Tool
We adapted a habitat quantification methodology currently employed in Wyoming to our data limitations and timeline. The adapted methodology uses GIS analysis to account for vegetation quality and the impact to Sage-grouse from anthropogenic surface features such as roads, residential areas, energy development, and communications infrastructure. As shown below, these components can be used to estimate the number of mitigation credits that could be generated by preserving any given area of the landscape.
We adapted a habitat quantification methodology currently employed in Wyoming to our data limitations and timeline. The adapted methodology uses GIS analysis to account for vegetation quality and the impact to Sage-grouse from anthropogenic surface features such as roads, residential areas, energy development, and communications infrastructure. As shown below, these components can be used to estimate the number of mitigation credits that could be generated by preserving any given area of the landscape.