Dear Landholder

As the landholder of the property identified, this document confirms your intention and consent to work with LawrieCo and AgriProve to plan, register and implement a carbon sequestration project pursuant to the Emission Reduction Fund (ERF) with the goal of creating negative emissions and being rewarded with carbon credits while enhancing the natural capital of the land and increasing productivity and efficiencies.

This agreement is exclusive for a period of 18 months from signing and confirms that no other party will be given the right to undertake or assist in an ERF project on the property during this time. A successful outcome of this agreement will result in a registered ERF project/s and will involve a further commitment to implement the project/s, which will only be made once the final design of the project/s have been established and commercial terms agreed.

This further agreement will create a relationship with LawrieCo and AgriProve Solutions Pty Ltd (or a nominated wholly owned subsidiary) to undertake agreed emissions reduction project/s on the property identified for the crediting period of the project (approx. 30 years), creating Australian Carbon Credit Units (ACCUs) for which LawrieCo and AgriProve will receive an agreed share of the of ACCUs as fee for services provided.

Implementing a soil carbon project is an active commitment to improving soil health and building soil organic carbon by implementing new or materially different farm management activities relative to the baseline condition of the farm.

The annexed Schedule of Land Use provides information about past and potential new land management activities that can be used to establish eligibility criteria and assist design a Land Management Strategy (LMS). Your assistance with ongoing data gathering and administrative processes will be required to ensure compliance with project eligibility and reporting requirements of the ERF. Delays or errors in the provision of information could cause a reduction in the amount of carbon credits issued to the project, or to the cancellation of the project registration.

Successful and ongoing relationship

Implementing a soil carbon project is a comprehensively regulated activity administered by the Clean Energy Regulator (CER). LawrieCo and AgriProve’s role is to manage the requirements for measuring, monitoring, and reporting soil carbon and to provide farmers with the tools and resources for project participation and success.

Soil carbon projects operate over an extended period. The permanence period finishes 25 years after the first date that carbon credits are issued. The implementation of the project is a commitment to take reasonable steps to implement land management strategies to build soil carbon, and to keep the farm operational under an agricultural system.

The commencement, implementation, and ongoing commitment that landholders make to undertaking a soil carbon project is conditional on:

• the project being registered and declared an eligible soil carbon project by the Clean Energy Regulator;

• results of any trials and assessments of the feasibility and performance of machinery, such as
specialist seeding and pasture renovation equipment, in line with farm management expectations;

• results of any trials and assessments of digital decision support tools in line with farm management expectations;

• carbon credits being issued to the project;

• acceptable reviews and updates to Land Management Strategies (LMS);

• commercial considerations for farm management, for example it is unreasonable to expect farmers to operate at a loss to meet administrative or LMS requirements for a soil carbon project.

Land Management Strategy

A key part of the project is the implementation of the LawrieCo Biological Farming Systems Land Management Strategy (LBFS-LMS) for carbon sequestration. The function of the LBFS-LMS is to describe the project mechanism being implemented by the landholder as the basis for increasing soil organic carbon stocks within the project area.

The LBFS-LMS can be utilised in broadacre cropping, grazing, horticulture and viticulture to increase soil organic carbon stocks relative to the baseline sampling round through the selection and successful implementation of the following examples of eligible activities:

• Applying nutrients to the land in. the form of a synthetic or non-synthetic fertiliser to address material deficiencies (for example adding recycled organics or other specific amendments).

• Retaining stubble after a crop is harvested.

• Converting from intensive tillage practices to reduced or no tillage practices.

You are required to outline historical and ongoing farm management activities in the Schedule of Land Use. Note that the specific areas of project implementation will be set out in the project soil sampling mapping that is developed during the registration process with the CER.

Other new eligible activities may also be implemented as part of ongoing farm operations. Please keep AgriProve and LawrieCo updated on those activities so that we can keep our project documentation updated. Please also note that there are some restrictions and exclusions for activities under a soil carbon project. For example, use of soil amendments containing coal or human effluent are excluded activities.

Clearing or thinning of woody vegetation from within the project area has certain restrictions to ensure illegal clearing does not occur. Also, the use of biochar needs to meet some eligibility requirements, so please contact AgriProve if you are considering using this product.

Each time a measured increase in soil carbon is calculated, there will be an opportunity to apply for ACCUs. Part of this process will be an updated report on the implementation of the Land Management Strategy and on-farm activities. Included will be a checklist to ensure that restricted or excluded activities have not been undertaken. This update will be presented to the landholders for sign-off and incorporation as a management record.