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Put $u=X_1-1$ and $v=X_2-1$. Evaluation at $(1,1)$ is surjective, andso its kernel is the prime ideal $\boxed{P=(u,v)}$. In particular $P/P^2$ is naturally an $R/P=\mathbb{Z}$-module, generated by the classes of $u,v$.

For integers $a,b$, including negative integers, reduction modulo $P^2$ givesFor negative powers, this follows from $(1+u{)}^{-1}\equiv 1-u$ and $(1+v{)}^{-1}\equiv 1-v$; the mixed product $uv$ vanishes modulo $P^2$. Therefore a Laurent polynomial $f$ satisfiesThe formal derivatives obey the product rule, so $D_i(ab)=\theta (a)D_i(b)+\theta (b)D_i(a)$. If $a,b\in P$, both terms vanish. Hence both $D_i$ vanish on $P^2$ and define a mapIt sends $[u]$ to $(1,0)$ and $[v]$ to $(0,1)$, and the displayed expansion gives its inverse. Thus the conormal module has the explicit basis

Let $A=R_P$ be the localization at a prime ideal, with maximal ideal $\mathfrak{m}=P{R}_P$. Every nonzero integer lies outside $P$ and is therefore inverted. The residue field isIndeed there is an explicit identificationinverting $1+u$ and $1+v$ has no effect in this local ring, and a polynomial denominator lies outside $(u,v)$ precisely when its constant term is nonzero. Conversely, clearing rational denominators turns every such fraction into a fraction from $R_P$.

For the Krull dimension, the prime ideal correspondence for localization preserves the strict chainof prime ideals in $R$. They are prime because the successive quotients are the integral domains $R$, $\mathbb{Z}[X_2,X_2^{-1}]$, and $\mathbb{Z}$. They remain distinct after localization at a prime ideal because they are all contained in $P$. Hence $\dim A\ge 2$.

For the upper bound, $R$ is a Noetherian ring by the Hilbert basis theorem and Localization of a Noetherian ring. Since $P$ is generated by two elements, the Krull height theorem gives $\mathrm{ht}P\le 2$. The prime ideal correspondence for localization identifies $\dim R_P$ with $\mathrm{ht}P$, so

A Noetherian local ring $(B,\mathfrak{n})$ with residue field $\kappa$ is a regular local ring ifBy the Nakayama lemma, the dimension on the left is the minimal number of generators of $\mathfrak{n}$; this is also called the embedding dimension.

The localization of a module is exact and commutes with quotients and products of ideals. Applying it to the already computed conormal module gives the cotangent space of a local ringIts dimension is two, equal to $\dim A$. Therefore $\boxed{R_P\text{ is a regular local ring}}$. Notice that $P/P^2$ has a basis over $\mathbb{Z}$, whereas the localized cotangent space of a local ring has a basis over the residue field $\mathbb{Q}$.