Saskatchewan equivalency for methane regulations

Summary#

This is a proposed Order that would suspend the application of the federal Regulations Respecting Reduction in the Release of Methane and Certain Volatile Organic Compounds (Upstream Oil and Gas Sector) in Saskatchewan because the province has updated its own rules that are expected to deliver similar methane cuts. The suspension would cover the period starting January 1, 2025 through December 31, 2029 (subject to review and possible early termination), and the federal review estimates nearly equal reductions: 40.8 Mt CO2e under Saskatchewan rules versus 41.0 Mt CO2e under the federal rules, with estimated federal administrative savings of $474,188 over five years.

What it does#

• Suspends the federal methane-and-VOC regulations in Saskatchewan, except for federal works or undertakings (for example, interprovincial pipelines).
• Does this on the basis of a new equivalency agreement between the Minister of the Environment and Saskatchewan that covers January 1, 2025 to December 31, 2029.
• Keeps in place annual reviews and data‑sharing requirements so Canada can check that Saskatchewan’s rules continue to produce equivalent greenhouse‑gas outcomes (measured in CO2e).
• Allows either party to end the equivalency agreement early with at least three months’ notice.
• Notes a possible earlier review/termination tied to federal regulatory amendments: if future federal changes are finalized and a review shows outcomes are not equivalent, the agreement could end on December 31, 2026.

Who's affected#

• Operators in the upstream oil and gas sector working in Saskatchewan.
• Facilities on reserve lands identified in the review — in Saskatchewan these include operations on the lands of 11 First Nations; the Order would continue to suspend the federal regulations for those facilities.
• The provincial regulator and companies that will follow Saskatchewan’s amended rules and directives instead of the federal ones.
• Federal enforcement and program staff, who would have reduced administrative and enforcement activities in Saskatchewan (estimated savings noted above).
• The notice says small businesses are not expected to face new costs from this Order.

Why it matters#

• It avoids forcing the same companies to follow two overlapping sets of rules. That can save time and paperwork for companies and for government.
• The government’s analysis says Saskatchewan’s rules should achieve nearly the same methane reductions as the federal rules over the five‑year period (difference of 0.2 Mt CO2e across 2025–2029), so climate outcomes are expected to be equivalent.
• The Order shifts responsibility for enforcement and reporting in Saskatchewan from the federal regulation to the provincial regime, which may change who companies deal with and how compliance is checked.
• There is an explicit review mechanism and a possibility of earlier termination if future federal changes mean the outcomes are no longer equivalent, so the arrangement is not permanent.