Saskatchewan Methane Regulations Equivalency Order

Summary#

The Order Declaring that the Provisions of the Regulations Respecting Reduction in the Release of Methane and Certain Volatile Organic Compounds (Upstream Oil and Gas Sector) Do Not Apply in Saskatchewan says most of the federal methane/VOC rules for upstream oil and gas will not apply in Saskatchewan while a provincial equivalency agreement is in force. The order was registered October 26, 2020 and published November 11, 2020; the equivalency is expected to run until December 31, 2024, and one part of the order takes effect on January 1, 2023.

What it does#

• Stops the federal Regulations Respecting Reduction in the Release of Methane and Certain Volatile Organic Compounds (Upstream Oil and Gas Sector) from applying in Saskatchewan, except for activities that are federal works or undertakings (for example, some interprovincial pipelines).
• Leaves Saskatchewan in charge of enforcing its own methane rules because the Government of Saskatchewan and the federal government agreed the provincial rules give equivalent emissions outcomes for the period of the agreement.
• Links the order to an equivalency agreement that ends on or before December 31, 2024; the order ends when that agreement ends.
• Delays the start of one group of federal provisions so that paragraph 1(b) of the order comes into force on January 1, 2023.
• Is a final, registered federal order (not a new law) that reduces overlapping federal-provincial regulation in the province.

Who's affected#

• Oil and gas companies and facilities operating in Saskatchewan.
• Small oil and gas businesses in Saskatchewan — the government estimated about 111 such firms could be affected by the federal rules before this order.
• Facilities located on reserve lands of 11 First Nations in Saskatchewan (the order stands down federal rules there too).
• Operators of federal works or undertakings (these remain covered by the federal rules).
• The Government of Saskatchewan and Environment and Climate Change Canada, who will review and monitor the agreement.

Why it matters#

• It reduces duplicate rules and paperwork for Saskatchewan oil and gas operators. The federal government estimated administrative savings of about $410,500 over five years, with annualized industry administrative savings of about $386,793 and roughly $2,015 saved per business on average.
• The federal government says the provincial rules and directives should deliver equivalent methane reductions over the equivalency period (2020–2024). That helps avoid regulatory overlap while aiming for the same environmental result.
• Modeling in the federal record shows the provincial approach may not give the same reductions as the federal rules over a longer window (2025–2029), so long-term outcomes are less certain. Annual reviews are built into the agreement.
• Environmental groups raised concerns about enforcement and long-term stringency. The order includes monitoring and information-sharing between federal and provincial governments.
• Canada remains committed to reducing methane emissions by 40–45% below 2012 levels by 2025; the federal government says this order does not change that national commitment.