Proposed suspension of federal methane rule in Alberta

Summary#

This is a proposed Order Declaring that the Regulations Respecting Reduction in the Release of Methane and Certain Volatile Organic Compounds (Upstream Oil and Gas Sector) Do Not Apply in Alberta, 2025. If approved and registered, it would suspend the federal methane regulation in Alberta while a new equivalency agreement is in force, to avoid duplicating provincial and federal rules. The proposal is open for comment for 60 days after publication.

What it does#

• Says the Regulations Respecting Reduction in the Release of Methane and Certain Volatile Organic Compounds (Upstream Oil and Gas Sector) would not apply in Alberta, except for federal works and undertakings (for example, interprovincial pipelines).
• Ties that non-application to a new draft equivalency agreement covering 2025 to 2030. The Order would stop applying if that agreement ends or is terminated.
• Keeps Alberta’s own rules (the Methane Emission Reductions Regulation and related directives) as the rules operators must follow in the province.
• Continues an annual review and expanded information-sharing between the federal government and Alberta under the draft agreement.

Who's affected#

• Operators in the upstream oil and gas sector in Alberta.
• Facilities located on reserve lands of 26 First Nations were identified as falling under the federal regulation; those facilities would be covered by Alberta’s regulations if the Order is in effect.
• The federal government and the Government of Alberta, which would use the equivalency agreement and information-sharing to coordinate compliance and reviews.
• Federal works and undertakings (such as interprovincial pipelines) would still follow the federal regulation.

Why it matters#

• The government says Alberta’s rules produce equivalent methane reductions to the federal rules. The department’s modelling finds cumulative methane reductions of 38.68 Mt CO2e under Alberta’s rules versus 37.77 Mt CO2e under the federal rules for 2025–2029 — a difference of 0.91 Mt (about 2.4%).
• Suspending the federal regulation in Alberta aims to reduce duplicate reporting and lower administrative costs. The federal administration savings are estimated at about $1,638,577 over a five-year period.
• For companies and communities in Alberta, this means they would follow one set of provincial requirements rather than two overlapping regimes if the Order and equivalency agreement are finalized.
• This is a proposal, not final law. People and organizations have 60 days from the notice to comment.