Federal Methane Rules Suspended in Saskatchewan

Summary#

This is a proposed Order published on July 6, 2024 that would suspend the federal Regulations Respecting Reduction in the Release of Methane and Certain Volatile Organic Compounds (Upstream Oil and Gas Sector) in Saskatchewan while a new equivalency agreement is in force. The idea is that Saskatchewan’s amended rules will cover the same methane reductions from 2025 to 2029, so companies in the province would follow provincial rules instead of the federal ones.

What it does#

• Declares that the federal Regulations Respecting Reduction in the Release of Methane and Certain Volatile Organic Compounds (Upstream Oil and Gas Sector) would not apply in Saskatchewan, except for federal works and undertakings (for example, interprovincial pipelines).
• Keeps the suspension in place while a new equivalency agreement between the federal government and the Government of Saskatchewan is in force (expected to run from January 1, 2025 to December 31, 2029) or until either party ends the agreement with at least three months’ notice.
• Recognizes that Saskatchewan’s updated rules — the Oil and Gas Emissions Management Regulations together with Directive PNG017 and Directive PNG036 — are expected to achieve similar methane reductions as the federal rules.
• Notes a built-in review: if federal amendments (published December 16, 2023) are finalized and the comparison shows the results are not equivalent, the equivalency could end earlier (with a possible termination date of December 31, 2026).
• The federal government estimates administrative cost savings of about $474,188 over a five‑year period from not having to run parallel federal compliance and enforcement activities in Saskatchewan.

Who's affected#

• Oil and gas companies and facilities operating in Saskatchewan — they would follow provincial methane rules instead of the federal ones while the agreement is active.
• Facilities on reserve lands in Saskatchewan (the proposal notes such facilities were identified on the lands of 11 First Nations) are included in the suspension.
• The federal government and provincial regulators, because they will carry out annual reviews and share facility‑level emissions and enforcement data.
• Federal works and undertakings (for example, interprovincial pipelines) remain subject to the federal regulations.

Why it matters#

• It avoids duplicate rules and extra reporting for companies in Saskatchewan by letting them meet one set of requirements rather than both provincial and federal standards.
• The government’s technical comparison estimates nearly the same climate outcome: 40.8 megatonnes (Mt) CO2e of methane reduction under Saskatchewan’s amended rules versus 41.0 Mt CO2e under the federal rules over 2025–2029. These numbers are within model uncertainty and are treated as equivalent.
• The change is not final yet — it’s tied to a new equivalency agreement and a public comment period (the notice allows 60 days to submit comments). That means the Order could still be changed before coming into force.