Summary of comments on the draft agreement and draft order with British Columbia on the methane regulations

Support for equivalency agreements

An expression of support for the finalization of the equivalency agreement with British Columbia (BC) respecting the federal methane regulations was made. 

Under the Canadian Environmental Protection Act, 1999 (CEPA), the federal government may enter into equivalency agreements with provinces, when the conditions under Section 10 of CEPA are met and where there are equivalent or better environmental outcomes.

Leak detection and repair (LDAR) language

The equivalency agreement should be conditional on the review of the provincial regulations to reflect clearer language on LDAR requirements.

The department used the same methodology to measure and compare the expected reduction of methane emissions including co-located wells between the federal and provincial regulation.

Clarity over requirements respecting LDAR including those applicable to co-located wells will be reflected in guidance documents. The province of BC has published guidance on this aspect in their Fugitive Emissions Management Guideline  on July 18, 2019. ECCC will also publish clarification on LDAR including for co-located wells in a guidance document. A review of the provincial regulations will be conducted by provincial authorities in 2022.

Strengthened regulations

The provincial methane regulations should be strengthened to ensure the enhanced capture of methane emissions and the rates of inspection should match or exceed those of the federal regulations.

The requirements under the BC regime should exceed the expected emission reductions under the federal regulations in the province over the period of analysis from January 1, 2020 to January 1, 2025. The provincial leak detection and inspection rate provisions are equivalent or sufficiently comparable to the federal requirements.

Termination of the Agreement

The draft agreement should be modified to provide for the termination of the agreement if it cannot be demonstrated that the province is achieving equivalent reductions.

Under CEPA, an equivalency agreement may be terminated by giving the other party at least three months notice. Termination may be initiated for any reason including on matters respecting the environmental outcome. Canada and BC have agreed to review the agreement annually. 

Extensive information sharing obligations on the part of BC are agreed upon under the agreement.  These obligations and resulting information will enable Canada to monitor the effective implementation of the provincial equivalent provisions and resulting environmental outcome.    

The order ceases to have effect on the day on which the Agreement terminates or is terminated. An agreement terminates at the latest five years after it comes into force. Canada and BC will negotiate and may conclude another agreement after that period if the requirements under section 10 of CEPA are met, including an equivalent environmental outcome.

Data quality and incorporation of new information

The BC methane regulation should be evaluated using new data from the recently published 2018 BC Methane Emissions Field (MEF) study to determine the equivalency of emissions outcomes.

A better collection of baseline data should be initiated on methane emissions as well as continued monitoring according to best practices.

A comparison of the analysis published in the Canada Gazette, Part I, with the results from the final BC Methane Emissions Field (MEF) study has been conducted, to confirm that the provincial regulations is expected to achieve higher methane emission reductions than the federal methane regulations in the province of BC. 

The department is continually improving methane emission estimation techniques and frequently considers newly available and robust information to inform the data quality.

Pneumatic controller emissions

Expression of support for the BC and federal methane regulations adopting the Alberta Energy Regulator’s requirements for pneumatic controllers.

Comments respecting the design of the proposed regulations that were published in 2017 were duly considered before publication of the final regulations.

Resident’s Right to Investigation

Notice of Objection - The provincial regime is not equivalent to Canada’s in the rights of citizens to require an investigation.

The proposed amendments under sections 61.1 to 61.4 of the Oil and Gas Activities Act are similar provisions to sections 17 to 20 of the CEPA. Sections 17 to 20 do not provide any obligation describing the information obtained and stating the reasons for discontinuation.

Sanctions and enforcement program

Notice of Objection - The provincial regime is not equivalent or comparable to Canada’s in penalties.

Sanctions and penalties under a provincial regime are elements for consideration in determining whether to conclude an agreement with a government under section 10 of the CEPA. The sanctions and penalty regime applicable to the provincial regime, in particular the relevant provisions under the OGAA and the Drilling and Production Regulation (DPR), will support its implementation resulting in an equivalent or comparable environmental outcome to the federal methane regulations.