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UER Verification Report Oilfield uses power grid instead of generator retrofit project Project ID: XVDG Project Partner: Xinjiang Petrolor Energy Services Co., Ltd No.2286 Jiyuan Road, Economics Development District, Korla City, Bayingol Mongolian Autonomous Prefecture, Xinjiang, China Document provided by Müller-BBM Cert GmbH Accreditation No. D-VS-18709-01-00 (DAkkS) Report No. MC-UER-20-007 Version No. 1.0 Page 1 of 70 UER Verification Report Title of the project activity Oilfield uses power grid instead of generator (as stated within the application template) retrofit project Project No. XVDG Approval authority of the project activity DEHSt Approval date of the project activity 13/08/2020 Lead Partner of the Project Xinjiang Petrolor Energy Services Co., Ltd Address of the Lead Partner No.2286 Jiyuan Road, Economics Development District, Korla City, Bayingol Mongolian Autonomous Prefecture, Xinjiang, China Approved offsetting period 2020-08-18 to 2021-08-17 (incl. both days) Monitoring/verification period number and duration MP 02 of this monitoring period 2020-10-01 to 2020-11-30 (incl. both days) Version number of the monitoring report to which this 2.1 dated 02/12/2020 report applies Host State P. R. China Scale of the project activity ☑ Large-scale ☐ Small-scale Sectoral scopes linked to the applied methodologies Sectoral scope 1: Energy industries Applied methodologies and standardized baselines AM0045 “Grid Connection of Isolated Electricity Systems” Version 03.0 Standardized baselines: N/A The project site which is the closest to the source of the Substation Yueman Kezier Keshener emissions, by reference to longitude and latitude Longitude 82.8910°E 82.4395°E coordinates to four decimal places [hddd.ddddd°] Latitude 40.6365°N 41.9188°N Estimated amount of GHG upstream emission 19,615,763 reductions during the monitoring period [kg CO2e] Certified amount of GHG upstream emission 22,638,126 reductions during determined monitoring period [kg CO2e] Prepared by Müller-BBM Cert GmbH Contact Heinrich-Hertz-Straße 13 50170 Kerpen Accreditation ID D-VS-18709-01-00 (DAkkS) Verification report ID MC-UER-20-007 Version number of the verification report 1.0 Issue date of this report 2020-12-05 Verification carried out (from-to) 2020-11-20 to 2020-12-05 Applicable level of assurance Reasonable Name and position of the confirming personnel of the Dr. Stefan Bräker, Dr. Matthias Bender, Managing verification report director Page 2 of 70 MC-UER-20-007 UER Verification Report Content Section A Executive Summary ..........................................................................................5 A.1 Purpose and general description of project activity ............................................ 5 A.2 Location of project activity ...................................................................................... 6 A.3 Information, in case of project activities associated with oil production ........... 6 A.4 Scope of the verification ......................................................................................... 7 A.5 Preparation and assessment ................................................................................. 8 A.6 Conclusion ................................................................................................................ 9 Section B Verification team, technical reviewer and approver .................................... 10 B.1 Verification team member ..................................................................................... 10 B.2 Technical reviewer and approver of the verification report .............................. 10 Section C Application of materiality................................................................................ 11 C.1 Consideration of materiality in verification planning .......................................... 11 C.2 Consideration of materiality in verification activities .......................................... 13 Section D Means of verification ....................................................................................... 14 D.1 Desk/document review .......................................................................................... 14 D.2 On-site inspection .................................................................................................. 14 D.3 Interviews ................................................................................................................ 15 D.4 Sampling approach................................................................................................ 15 D.5 Clarification requests (CL) corrective action requests (CAR) and forward action requests (FAR) raised ............................................................................... 16 Section E Verification findings ........................................................................................ 17 E.1 Contents of the monitoring report ........................................................................ 17 E.2 Remaining forward action requests from validation and/or previous verifications ............................................................................................................. 18 E.3 Compliance of the project implementation and operation with the registered design document ................................................................................................... 18 E.4 Post registration changes ..................................................................................... 20 E.4.1 Temporary deviations from the registered monitoring plan, applied methodologies, standardized baselines and other methodological documents ................................................................................................................................. 20 E.4.2 Corrections ............................................................................................................. 20 Page 3 of 70 MC-UER-20-007 UER Verification Report E.4.3 Permanent changes from registered monitoring plan, or permanent deviation of monitoring from the applied methodologies, standardized baselines or other methodological documents ......................................................................... 21 E.4.4 Changes to the project design ............................................................................. 22 E.5 Compliance of the registered monitoring plan with applied methodologies, applied standardized baselines and other applied methodological documents ................................................................................................................................. 22 E.6 Compliance of the monitoring activities with the registered monitoring plan . 24 E.6.1 Data and parameters fixed ex ante or at renewal of crediting period ............. 24 E.6.2 Data and parameters monitored .......................................................................... 25 E.6.3 Implementation of sampling plan ......................................................................... 25 E.7 Compliance with the calibration frequency requirements for measuring instruments ............................................................................................................. 25 E.8 Assessment of data and calculation of emission reductions ........................... 26 E.8.1 Calculation of baseline GHG emissions ............................................................. 26 E.8.2 Calculation of project GHG emissions ................................................................ 28 E.8.3 Calculation of leakage emissions ........................................................................ 29 E.8.4 Summary calculation of upstream emission reductions ................................... 30 E.8.5 Comparison of actual of upstream emission reductions with estimates in the approved PDD ........................................................................................................ 31 E.9 Approval .................................................................................................................. 32 E.10 Offsetting period..................................................................................................... 32 Section F Internal quality control .................................................................................... 33 Section G Verification opinion ......................................................................................... 34 Appendix 1: Abbreviations ................................................................................................... 36 Appendix 2: Certificates of verification team members ................................................... 37 Appendix 3: Documents reviewed or referenced .............................................................. 45 Appendix 4: Clarification requests, corrective action requests and forward action requests ............................................................................................................ 45 Appendix 5: Monitored parameters ..................................................................................... 51 Appendix 6: Accuracy and Calibration details of monitoring equipment ...................... 69 Page 4 of 70 MC-UER-20-007 UER Verification Report Section A Executive Summary A.1 Purpose and general description of project activity Mabanaft GmbH & Co. KG has commissioned Müller BBM CERT GmbH to carry out the 2nd verification of the UER project activity Oilfield uses power grid instead of generator retrofit project with regard to the applicable
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