Saskatchewan exempted from federal methane rules

Summary#

This Canada Gazette, Part I notice (published July 6, 2024) proposes an Order that would stop the federal methane rules from applying in Saskatchewan starting in 2025, because Saskatchewan’s own rules are expected to produce equivalent methane reductions. The change would rely on a new equivalency agreement covering January 1, 2025 to December 31, 2029 and is currently open for comment.

What it does#

• It would suspend the application of the Regulations Respecting Reduction in the Release of Methane and Certain Volatile Organic Compounds (Upstream Oil and Gas Sector) in Saskatchewan, except for federal works or undertakings (for example, some interprovincial pipelines).
• The suspension depends on a written equivalency agreement between the federal government and Saskatchewan that says provincial laws produce equivalent greenhouse‑gas outcomes in the upstream oil and gas sector.
• The proposed agreement covers January 1, 2025 to December 31, 2029, would be reviewed annually, and can be ended earlier with at least three months’ notice.
• Saskatchewan’s package that the federal government reviewed includes the Oil and Gas Emissions Management Regulations and the provincial directives Directive PNG017 and Directive PNG036 (amended in 2024).
• The federal analysis estimates cumulative methane‑reduction outcomes over 2025–2029 of 40.8 megatonnes (Mt CO2e) under the Saskatchewan rules versus 41.0 Mt CO2e under the federal rules — a difference of 0.2 Mt, which the government considers equivalent.
• The federal government estimates administrative cost savings of about $474,188 over five years from not administering the federal rules in Saskatchewan.
• This is a proposed Order; the Canada Gazette notice invites comments for 60 days after publication.

Who's affected#

• Upstream oil and gas companies and the facilities that operate wells, pipelines, compressors and related equipment in Saskatchewan.
• Facilities located on reserve lands of 11 First Nations in Saskatchewan (the Order would continue to suspend the federal rules for those facilities if the agreement is in force).
• The Government of Saskatchewan and provincial regulators, who would enforce the provincial rules and report emissions data agreed to in the equivalency deal.
• Federal regulators and staff who would reduce some enforcement and administrative activity in Saskatchewan.
• The notice says it is not expected to impose extra costs on small businesses.

Why it matters#

• It avoids duplicate rules and reporting for companies that would otherwise have to follow both federal and provincial requirements. That can reduce paperwork and compliance time for industry.
• The federal government judged Saskatchewan’s amended rules and directives would deliver almost the same methane reductions as the federal regulation over 2025–2029 (40.8 Mt vs 41.0 Mt CO2e), so the environmental outcome is intended to be the same while leaving regulatory control with the province.
• The decision affects how methane emissions from oil and gas are regulated in Saskatchewan, including operations on some Indigenous reserve lands. If future federal amendments change the expected outcome, the equivalency could be reviewed and could end earlier (the Gazette explains a possible termination date of December 31, 2026 if equivalency is not maintained after an upcoming review).
• Because this is a Part I proposal, it is not final. Members of the public and stakeholders have the stated opportunity to comment within 60 days of the Gazette notice.