New Federal Methane Reduction Regulations

June 13 2017

Article by Thomas W. McInerney, Michael R. Barrett and Kay She
Bennett Jones LLP

The government of Canada has released its proposal for the first federal regulations on greenhouse gas emissions applicable specifically to the upstream oil and gas sector, titled Regulations Respecting Reduction in the Release of Methane and Certain Volatile Organic Compounds (Upstream Oil and Gas Sector).

The proposed regulations, which will be enacted under the Canadian Environmental Protection Act, 1999, SC 1999, c 33, introduce facility and equipment standards to reduce fugitive and venting emissions of “hydrocarbon” gas (defined in the proposed regulations as methane and certain volatile organic compounds but for the purposes of this summary referred to collectively as “gas”) from Canada’s oil and gas industry. These standards will apply as of January 1, 2020 (with several exceptions noted below). The proposed regulations are part of the “Pan-Canadian Framework on Clean Growth and Climate Change” to meet greenhouse gas reduction targets.

The reduction requirements contemplated in the proposed regulations can be categorized broadly into two categories: (i) general requirements applicable to upstream oil and gas facilities; and (ii) requirements specific to upstream oil and gas facilities producing or receiving an aggregate of more than 60,000m3 of gas in a 12-month period.

Read the full article here.

 

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