Amendments to the Federal Methane Regulations for Upstream Oil and Gas

The 2018 Regulations Respecting Reduction in the Release of Methane and Certain Volatile Organic Compounds (Upstream Oil and Gas Sector) have been amended with effect from 1 January 2028. The amended regulations apply to onshore upstream oil and gas facilities and are estimated to achieve a 72% reduction in oil and gas methane emissions by 2030 compared to 2012. 

The amended regulations offer two compliance pathways to oil and gas operators:
Prescriptive compliance pathway: Under this pathway, operators are required to comply with requirements set out under Part 1 of the regulations, including:

• Fugitive emissions management: Three categories of inspections are mandated for detection of fugitive emissions. Facilities undertaking higher-risk activities that are more likely to have fugitive emissions (Type 1 facilities) need to take 4 comprehensive inspections, 1 annual inspection, and multiple screening inspections (monthly when operators are present on site) per year. All other active facilities (Type 2 facilities) need to take 1 comprehensive inspection, 1 annual inspection and multiple screening inspections per year. Inactive facilities need to take 1 annual inspection and multiple screening inspections per year. 
• Repair schedule: Detected emissions need to be addressed within a prescribed repair timeline that is dependent on the emissions rate, starting with a timeline of 24 hours for emissions rates of 100 kg/h or more. 
• Venting: Venting is prohibited with exceptions for human health and safety, planned equipment maintenance, emergency etc. from 1 January 2028 for new facilities and from 1 January 2030 for existing facilities (with a limited exception for low-producing facilities).

Alternative compliance pathway: Under this pathway, facilities using an emissions monitoring system may design their own approaches to controlling methane, so long as the facility meets prescribed methane intensity thresholds and takes corrective action within prescribed timelines when the emissions intensity crosses the threshold. The regulations lay down requirements for the emissions monitoring system and facilities need to complete an annual inspection and submit an annual report. 

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