Regulations Respecting Reduction in the Release of Methane and Certain Volatile Organic Compounds (Upstream Oil and Gas Sector) (SOR/2018-66)

Marginal note:Leaks

• 31 (1) A release of hydrocarbons from an equipment component is a leak if

  • (a) the release consists of at least 500 ppmv of hydrocarbons, as determined by an inspection conducted by means of an eligible portable monitoring instrument in accordance with EPA Method 21; or

  • (b) the release is detected

    • (i) during an inspection conducted by means of an eligible optical gas-imaging instrument, or

    • (ii) by means of an auditory method, an olfactory method or a visual method, including the observation of the dripping of hydrocarbon liquids from the equipment component.

• Marginal note:Release not considered a leak

  (2) A release that is detected under paragraph (1)(b) is no longer considered to be a leak if the equipment component undergoes an inspection conducted by means of an eligible portable monitoring instrument in accordance with EPA Method 21 and the release is determined to consist of less than 500 ppmv of hydrocarbons.

Marginal note:Period for repair

• 32 (1) A leak from an equipment component that is detected, whether as a result of an inspection or otherwise, must be repaired

  • (a) if the repair can be carried out while the equipment component is operating, within 30 days after the day on which it was detected; and

  • (b) in any other case, within the period before the end of the next planned shutdown unless that period is extended under section 33.

• Marginal note:Next planned shutdown

  (2) The next planned shutdown must be scheduled not later than the date on which the estimated volume of hydrocarbon gas, expressed in standard m³, that, beginning from the day on which the leak is detected, would if no repairs are made be emitted from the leaking equipment component in question and from all other equipment components that are also leaking as of that day is equal to the volume of hydrocarbon gas, expressed in standard m³, that would be emitted due to purging of hydrocarbon gas from equipment components in order to carry out the repair.

• Marginal note:Repair

  (3) A leak in an equipment component is considered to be repaired if the release is determined to consist of less than 500 ppmv of hydrocarbons based on an inspection of the equipment component by means of an eligible portable monitoring instrument in accordance with EPA Method 21 that is capable of measuring hydrocarbon concentrations in ppmv.

Marginal note:Extension up to six months for repair

• 33 (1) An operator for an upstream oil and gas facility that must repair an equipment component on or before the end of a period referred to in paragraph 32(1)(b) may, not later than 45 days before the end of the period, apply to the Minister to extend the period for up to six months.

• Marginal note:Granting of extension

  (2) The Minister must grant the application and extend the period for up to six months if the application contains the information set out in Schedule 1 and

  • (a) documents that establish that, as of the making of the application, there are reasonable grounds to conclude that it is not technically feasible to complete the repair of the equipment component before the end of the next planned shutdown;

  • (b) documents that establish that the applicant has a plan to repair the equipment component that sets out

    • (i) the expected date for the completion of the repair,

    • (ii) the steps to be taken to ensure completion of the repair on or before that date,

    • (iii) a justification, with supporting documents, for the belief that that date is the earliest feasible date to complete the repair, and

    • (iv) measures to be taken to minimize, if not eliminate, any harmful effect on the environment or human health from the emission of hydrocarbon gas before the completion of the repair; and

  • (c) a statement that the implementation of the plan is to begin within 30 days after the day on which the extension is granted.

• Marginal note:Renewal

  (3) The period granted under subsection (2) may be further extended by application made under subsection (1). At most two applications for a further extension may be made.

• Marginal note:Refusal of application

  (4) The Minister must refuse the application if the Minister has reasonable grounds to believe that the applicant has provided false or misleading information in the application.

Marginal note:Revocation of extension

• 34 (1) The Minister must revoke the extension granted under subsection 33(2) if the Minister has reasonable grounds to believe that the applicant has provided false or misleading information in their application for the extension.

• Marginal note:Conditions for revocation

  (2) The Minister must not revoke the extension unless the Minister has provided the applicant with

  • (a) written reasons for the proposed revocation; and

  • (b) an opportunity to be heard, by written representation, in respect of the proposed revocation.

Alternative LDAR Programs

Marginal note:Requirements for alternative program

• 35 (1) The alternative leak detection and repair program must include measures respecting

  • (a) the inspection for leaks;

  • (b) the operation, maintenance and calibration of leak detection instruments, if applicable; and

  • (c) the repair of leaks detected.

• Marginal note:Reversion to regulatory program

  (2) An operator for a facility that has not made a demonstration required by paragraph 29(1)(b) must establish and carry out a regulatory leak detection and repair program.

Records

Marginal note:Regulatory LDAR programs

• 36 (1) A record, with supporting documents, must be made of the following information related to the carrying out of a regulatory leak detection and repair program:

  • (a) for each calibration of an eligible leak detection instrument,

    • (i) the dates of the calibration,

    • (ii) the result of each calibration drift assessment, and

    • (iii) the name, job title, if any, and address of the individual who carried out the calibration;

  • (b) for each inspection of an equipment component,

    • (i) the date of the inspection, along with the name of the individual who conducted it,

    • (ii) the type of equipment component,

    • (iii) the location of the equipment component within the facility or the Global Positioning System (GPS) coordinates, to five decimal places, of the equipment component,

    • (iv) the type of leak detection instrument used to conduct the inspection, including, if any, its make and model,

    • (v) in the case that an optical gas-imaging instrument referred to in subparagraph 31(1)(b)(i) was used to conduct the inspection, the images recorded with an embedded indication of the date and time when they were recorded, along with the location of the place where they were recorded within the facility or the GPS coordinates, to five decimal places, of the place, and

    • (vi) in the case that an inspection resulted in the detection of a leak, an indication of the means, among those set out in subsection 31(1), by which the leak was detected and, in the case of a leak detected by a means set out in paragraph 31(1)(b), an indication as to whether the release was determined in accordance with subsection 31(2) to consist of less than 500 ppmv and, if so, the date of that determination, the name of the person who made that determination — and if that person is a corporation, the name of the individual who made it — and its result, expressed in ppmv, along with the make and model, if any, of the instrument used to make that determination;

  • (c) for each leak detected by means of a method set out in paragraph 31(1)(b) that was not as a result of an inspection,

    • (i) an indication of whether the method was auditory, olfactory or visual,

    • (ii) the date on which the leak was detected, along with the name of the individual who detected it,

    • (iii) the type of equipment component,

    • (iv) the location of the equipment component within the facility or its GPS coordinates, to five decimal places, and

    • (v) an indication as to whether the release was determined in accordance with subsection 31(2) to consist of less than 500 ppmv and, if so, the date of that determination, the name of the person who made that determination — and if that person is a corporation, the name of the individual who made it — and its result, expressed in ppmv, along with the make and model, if any, of the instrument used to make that determination;

  • (d) for each individual who conducted an inspection and who received training in the operation and maintenance or in the calibration of leak detection instruments,

    • (i) their name, along with the name and business address of their employer, if their employer is not the operator,

    • (ii) the name and business address of the entity that provided the training, along with the name and job title of the individuals who provided it,

    • (iii) the dates on which the training was provided and, for each of those dates, the number of hours of training, and

    • (iv) a description of the training;

  • (e) for each repair of a leak from an equipment component,

    • (i) a description of the steps that were taken to repair the leak, along with the dates on which those steps were taken, and

    • (ii) the result, expressed in ppmv, obtained following an inspection by means of an eligible portable monitoring system in accordance with EPA Method 21, along with the date on which that result was obtained; and

  • (f) for each repair that was not carried out within 30 days after the detection of the leak:

    • (i) an indication as to why the equipment component could not be repaired while it was operating, and

    • (ii) if applicable, the date determined in accordance with subsection 32(2), along with the information and calculation on which that determination was based.

• Marginal note:Alternative LDAR programs

  (2) A record, with supporting documents, must be made of the following information related to the carrying out of an alternative leak detection and repair program:

  • (a) the date on which each inspection was conducted and, if applicable, the name of the person who conducted it;

  • (b) the type of equipment component that was inspected, along with its location within the facility or its GPS coordinates, to five decimal places;

  • (c) a description as to the means by which the leak was identified;

  • (d) if applicable, for each leak detection instrument used, a description of the operation, maintenance and calibration measures in relation to that instrument, along with the dates of its maintenance and calibrations and the names of the persons who carried out the maintenance and calibrations;

  • (e) for each repair of a leak from an equipment component,

    • (i) a description of the steps that were taken to repair the leak, along with the dates on which those steps were taken, and

    • (ii) the result obtained after the repair following an inspection, along with a description of the means by which that inspection was conducted, its date and, if applicable, the name of the person who conducted it; and

  • (f) the demonstrations referred to in paragraph 29(1)(b).

• Marginal note:Document-keeping

  (3) A copy of each recommendation of the manufacturer for the operation and maintenance, if any, of each eligible leak detection instrument that is used must be kept.

Pneumatic Controllers and Pneumatic Pumps

Marginal note:Pneumatic controllers — bleed rate

• 37 (1) A pneumatic controller at an upstream oil and gas facility must not operate using hydrocarbon gas, other than propane, unless

  • (a) it is operated at an operational setting such that its bleed rate for that operational setting is less than or equal to 0.17 standard m³/h according to the manufacturer’s operating manual or according to a written demonstration, with supporting documents, made by the operator for the facility; or

  • (b) the hydrocarbon emissions from it are captured and routed to hydrocarbon gas conservation equipment or hydrocarbon gas destruction equipment.

• Marginal note:Exception — control of production processes

  (2) Despite paragraph (1)(a), a pneumatic controller at an upstream oil and gas facility may operate using hydrocarbon gas, other than propane, at an operational setting such that its bleed rate for that operational setting is more than 0.17 standard m³/h if the operator for the facility has a written record, with supporting documents, that demonstrates that the pneumatic controller must operate at that operational setting because of the need for the pneumatic controller to have a sufficient response time to control a process in the facility’s production activities.

Marginal note:Records — pneumatic controllers

38 A record in respect of each pneumatic controller used at an upstream oil and gas facility that operates using hydrocarbon gas must be made that indicates

• (a) the identifier for the pneumatic controller;

• (b) whether the pneumatic controller is used

  • (i) for controlling pressure or flow rate,

  • (ii) for controlling liquid levels,

  • (iii) for controlling temperature,

  • (iv) as a transducer,

  • (v) as a positioner, or

  • (vi) as an emergency response device, or

  • (vii) for another purpose or as another device and, if so, the purpose or type of device; and

• (c) the design bleed rate for the pneumatic controller’s operational setting, including its supply pressure and, if any, its band setting, or its bleed rate according to a written demonstration, with supporting documents, made by the operator for the facility at which the controller is used.

Marginal note:Pneumatic pumps

• 39 (1) Unless an operator for an upstream oil and gas facility has a permit issued in accordance with subsection 40(2), a pneumatic pump or a group of pneumatic pumps, used at the facility that pumps methanol into a common stream or an equipment component — must not operate using hydrocarbon gas if the pump or the group of pumps has, in a month, pumped more than 20 L of methanol per day on average over the month.

• Marginal note:Demonstration of quantity of liquid pumped

  (2) An operator for the facility must, for each pump or group of pumps referred to in subsection (1) that operates during a month at the facility, demonstrate the quantity of liquids that it pumped, on average, per day over the month by means of

  • (a) a record that indicates the quantity of liquid pumped during that month; or

  • (b) documents that establish that the pump or the group of pumps could not have pumped more than 20 L of liquid per day on average over the month.

• Marginal note:When subsection (2) no longer applies

  (3) Subsection (2) no longer applies in respect of a pump or group of pumps as of the end of a month during which it operated at the facility and records establish that it pumped, or could have pumped, more than 20 L of liquid per day on average over the month.

• Marginal note:Non-application of subsections (1) and (2)

  (4) Subsections (1) and (2) do not apply in respect of any pneumatic pump if hydrocarbon emissions from it are captured and routed to hydrocarbon gas conservation equipment or hydrocarbon gas destruction equipment.

Marginal note:Permit — pneumatic pumps

• 40 (1) An operator for an upstream oil and gas facility may, on or before June 30, 2022, apply to the Minister for a permit to have a pneumatic pump at the facility operate using hydrocarbon gas while its hydrocarbon emissions are not captured and routed to hydrocarbon gas conservation equipment or hydrocarbon gas destruction equipment.

• Marginal note:Issuance of permit

  (2) The Minister must issue the permit if the application contains the information set out in Schedule 2 and documents that establish that

  • (a) there are reasonable grounds to conclude that it is not feasible, technically or economically, for the applicant to have the pneumatic pump operate at the facility without using hydrocarbon gas or to have the pneumatic pump function using hydrocarbon gas while its hydrocarbon emissions are captured and routed to hydrocarbon gas conservation equipment or hydrocarbon gas destruction equipment, including grounds based on

    • (i) the capital, operating and maintenance costs of any modifications at the facility to achieve that objective, and

    • (ii) the avoided costs and any economic benefits arising from the incurring of those capital, operating and maintenance costs; and

  • (b) the applicant has a plan that

    • (i) involves taking steps to minimize the emission of hydrocarbon gas from the pneumatic pump, including steps such as adjusting the capacity of the pump or its operational settings so as to achieve the desired rate of injection of chemicals from the pump with the least possible emissions, along with a schedule to implement the plan, and

    • (ii) can reasonably be regarded as feasible for the purpose of permitting the facility to comply with subsection 39(1) on or before January 1, 2026.

• Marginal note:Duration

  (3) A permit takes effect on January 1, 2023 and expires on the earliest of

  • (a) the day on which the pneumatic pump ceases to function using hydrocarbon gas,

  • (b) the day on which the hydrocarbon emissions from the pneumatic pump begin to be captured and routed to hydrocarbon gas conservation equipment or hydrocarbon gas destruction equipment, and

  • (c) December 31, 2025.

• Marginal note:Refusal of application

  (4) The Minister must refuse the application if the Minister has reasonable grounds to believe that the applicant has provided false or misleading information in the application.