As we have previously covered, there has been a focus on regulating and reducing methane emissions from various sources – landfills, farms, and oil and gas. And on December 16, 2023, the Canada Gazette published “Regulations Amending the Regulations Respecting Reduction in the Release of Methane and Certain Volatile Organic Compounds (Upstream Oil and Gas Sector).”
The most recent methane regulations are being proposed as the United Nations Climate Change Conference, Conference of Parties (COP) 28 in Dubai, UAE concluded. Worth noting, the proposed federal regulations come on the heels of two federal regulatory setbacks for the current Administration (Impact Assessment Act and regulation of certain plastics). This new methane regulation may too face legal challenges.
Regulation to Reduce Methane Emissions from Oil and Gas
The stated objective of the proposed amendments is to reduce methane emissions in the upstream oil and gas sector by at least 75% below 2012 levels by 2030. “This action would reduce Canadian GHG emissions, contributing to Canada’s international commitments to combat climate change. In addition, as methane is a short-lived climate pollutant with significant near-term climate impacts, these reductions would contribute to slowing the rate of near-term global warming.”
Regulatory approach
Below are a summary of the regulations. See the post in the Gazette for full details. Note that the text below is taken from the Gazette.
Venting emissions
The proposed measures would prohibit the venting of natural gas to the environment, with some exemptions. It would address operational venting activity, as well as temporary venting (which takes place during or in preparation for maintenance).
The proposed Amendments would prohibit operators from intentionally venting hydrocarbon gas into the atmosphere.
Operators would be allowed to vent hydrocarbon gas during planned equipment maintenance or temporary depressurization when measures are taken to minimize venting of hydrocarbon gas to the atmosphere.
Exceptions: Safety, poor gas quality, prevention of prolonged interruption of gas supply to the public.
As of 2027, facilities increasing gas production would be required to design and operate systems to eliminate venting. All facilities in the sector would be subject to the new requirements in 2030.
Emissions associated with combustion of hydrocarbon gas
The proposed measures would require operators to manage emissions during the combustion of hydrocarbon gas.
- Hydrocarbon gas destruction equipment: Combustion systems utilized to comply with the proposed Amendments would have to achieve a minimum carbon conversion efficiency of 98%. The system would be required to operate with a pilot flame, automatic ignition device, and flame failure detection system.
Exceptions: Catalytic oxidation systems (efficiency of at least 85%) could be utilized for small gas volumes, not to exceed 60 m3 per day.
- Flaring: flaring of hydrocarbon gases, other than to avoid serious risk to human health or safety arising from an emergency, would have to be supported by an engineering study that concludes that the use of the hydrocarbon gas to produce useful heat or energy is not feasible in the circumstances.
As of 2027, facilities increasing gas production would be required to design and operate systems to limit emissions during combustion and to eliminate routine flaring where feasible. All facilities in the sector would be subject to the new requirements in 2030.
Fugitive emissions
The most recent methane regulations are being proposed as the United Nations Climate Change Conference, Conference of Parties (COP) 28 in Dubai, UAE concluded.
(Image by Paraskumar Agravat from Pixabay).
The proposed measures would target emissions that are unintentional, i.e. fugitive emissions.
The proposed Amendments would introduce a risk-based approach to the application of the fugitive emissions management program. Facilities that are more likely to emit methane (Type 1 facilities) would need to maintain a quarterly inspection schedule, whereas facilities less likely to emit methane (Type 2 facilities) would need to maintain an annual inspection schedule. All facilities would also need to undertake screening inspections, and at least one annual inspection by an auditor. All comprehensive inspections would need to be conducted using instruments with a standard minimum detection limit of 500 ppm. Upon detection of emissions, whether as a result of an inspection or otherwise, repairs would need to be made within a repair timeline that is dependent on the emission rate (i.e. higher emissions would need to be addressed quickly — within 24 hours or 7 days — whereas lower emissions, less than 1 kg/hr, can be scheduled for repair over several months).
The related proposed measures would come into force on January 1, 2027, for all facilities, as these changes can be implemented without any modifications to facility infrastructure.
Performance-based approach
This proposed measure would set out an alternative approach for compliance with the Regulations that relies on the installation of continuous monitoring systems for the facility’s potential methane emission sources. Upon detection of methane emissions, a mitigation response must be initiated according to timelines dictated by the emission rate. When detected emissions exceed a management trigger of 10 kg/hr, an event analysis would also need to be conducted as part of mitigation actions. This compliance pathway is an alternative to the requirements described for venting and fugitive emissions.
This related proposed Amendment would come into force on January 1, 2027, and be an available compliance option for all facilities.
Removing application to offshore facilities
The proposed Amendments would remove specific compliance requirements for the offshore sector in the existing Regulations. This change would avoid duplication with regulations proposed by Natural Resources Canada for the Frontier and Offshore Regulatory Renewal Initiative, which would include specific measures to deal with methane emissions in the offshore sector.
The consultation period ends February 14, 2024 11:59pm (EST)
Costly, Dangerous, and Unconstitutional
As mentioned, recently two major federal environmental regulations were overturned (Impact Assessment Act and regulation of certain plastics). The new methane regulation is also facing opposition.
Alberta Premier Danielle Smith, who was also in attendance at COP28, called the new regulations, “costly, dangerous, and unconstitutional.”
Premier Smith also stated, “With this pronouncement, (Prime Minister) Justin Trudeau and his eco-extremist Minister of the Environment and Climate Change Steven Guilbeault are risking hundreds of billions of dollars of investment in Alberta’s economy.”
See the joint statement by Premier Smith and Alberta Minister of Environment Rebecca Schulz.
Methane from Beef Cattle
Finally, we’ll just mention that on December 10, 2023, Environment and Climate Change Canada Environment and Climate Change Canada published a draft fourth protocol under Canada’s Greenhouse Gas Offset Credit System. This new draft protocol, Reducing Enteric Methane Emissions from Beef Cattle (REME protocol), will incentivize farmers to implement changes that would reduce enteric methane emissions from their beef cattle operations with an opportunity to generate offset credits that they can sell.
If you need assistance with an environmental-related matter, contact Christopher Pare’, P.Geo. Q.P. at 519-948-7300, Ext. 114.
Dragun Corporation does not use artificial intelligence in drafting our blogs or any other material.
Alan Hahn drafted this blog. Alan holds an undergraduate degree in Environmental Studies and completed a graduate program in Environmental Management. He has worked in environmental management for 45 years. He has written hundreds of blogs and articles. His published work includes HazMat Magazine, BizX Magazine, Michigan Lawyers Weekly, GreenStone Partners, Manure Manager Magazine, and Progressive Dairy.
Christopher Paré, P.Geo, reviewed this blog. Chris is a senior geoscientist and manager of Dragun’s Windsor, Ontario, office. Chris has more than 30 years of experience on projects ranging from environmental site assessments (Phase One/Two ESA), excess soils, remedial investigations, soil and groundwater remediation, Permits to Take Water, Records of Site Conditions, vapour intrusion, and site decommissioning. Chris is a frequent speaker, author, and expert witness. See Chris’ bio.
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