Regulations Respecting Reduction in the Release of Methane and Certain Volatile Organic Compounds (Upstream Oil and Gas Sector) (SOR/2018-66)

Marginal note:Records — compressors and vents

• 19 (1) A record must be made that indicates for each compressor referred to in section 14

  • (a) its serial number;

  • (b) its make and model;

  • (c) its rated brake power;

  • (d) the date on which it was installed at the facility, if it was installed on or after January 1, 2020, or a demonstration, with supporting documents, that it was installed at the facility before January 1, 2020;

  • (e) if applicable, the type of hydrocarbon gas conservation equipment or hydrocarbon gas destruction equipment to which the emissions of hydrocarbon gas from the its seals or rod packing and distance pieces, as the case may be, are captured and routed, namely

    • (i) a vapour recovery unit,

    • (ii) a vent gas capture system,

    • (iii) a flare,

    • (iv) an enclosed combustor, or

    • (v) another type, and if so, a description of the type;

  • (f) for each centrifugal compressor for which emissions from its seals are routed to vents that release those emissions to the atmosphere, whether the seals are dry or wet;

  • (g) for each reciprocating compressor from which emissions from its rod packings and distance pieces are routed to vents that release those emissions to the atmosphere, the number of those rod packings; and

  • (h) for each compressor for which the period within which a measurement by a flow meter must be made has been extended under subsection 16(6), the number of hours during which it was pressurized during the three calendar years referred to in that subsection.

• Marginal note:Records — flow meters

  (2) A record must be made that indicates, for each measurement, including a remeasurement, the flow rate of emissions from a vent referred to in paragraph 14(b) made by means of a flow meter referred to in paragraph 15(a),

  • (a) the make and model of the flow meter;

  • (b) the maximum flow rate referred to in paragraph 16(4)(a) or the average flow rate referred to in paragraph 16(4)(b), as the case may be;

  • (c) the date on which the measurement was taken;

  • (d) the recommendations of the manufacturer for the calibration of the flow meter referred to in subsection 16(1), along with a demonstration, with supporting documents, that the measurements taken with that calibration have a maximum margin of error of ±10%;

  • (e) any recommendation for the taking of the measurement, along with supporting documents;

  • (f) the duration of the continuous period referred to in paragraph 16(4)(a) or (b), as the case may be; and

  • (g) the name of the person who took the measurement and, if that person is a corporation, the name of the individual who took it.

• Marginal note:Records — continuous monitoring devices

  (3) A record must be made that indicates, for each measurement, including a remeasurement, of the flow rate of emissions from a vent referred to in paragraph 14(b) made by means of a continuous monitoring device referred to in paragraph 15(b),

  • (a) a description of the device;

  • (b) if applicable, its serial number, make and model; and

  • (c) the recommendations of the manufacturer for the calibration of the continuous monitoring device referred to in paragraph 17(a) along with a demonstration, with supporting documents, that the measurements taken with that calibration have a maximum margin of error of ±10%.

• Marginal note:Records — corrective actions taken

  (4) A record must be made that indicates, for each corrective action taken,

  • (a) a description of the corrective action, including a description of each step of the corrective action;

  • (b) the dates on which that corrective action was taken, along with the dates on which each of its steps was taken;

  • (c) for each remeasurement taken under paragraph 18(4)(b), the volume and estimated volume, determined for the purpose of that paragraph, along with supporting calculations; and

  • (d) if the corrective action was taken as a result of a measurement by means of a continuous monitoring device, the date on which the alarm was triggered.

Conditional Requirements

Conditions

Marginal note:Application of sections 26 to 45

• 20 (1) Sections 26 to 45 apply in respect of an upstream oil and gas facility as of the first day of the month that begins after the facility produces or receives — or is expected to produce or receive — a combined volume of more than 60 000 standard m³ of hydrocarbon gas for a period of 12 months, determined as follows:

  • (a) if the facility has operated during at least 12 months, whether consecutive or not, with at least one day of operation in each of those months, the combined volume of hydrocarbon gas, expressed in standard m³, produced or received based on records, for the most recent 12 of those months of operation;

  • (b) if the facility has operated during at least one month and less than 12 months, whether consecutive or not, with at least one day of operation in each of those months, the combined volume of hydrocarbon gas, expressed in standard m³, that the facility is expected to produce or receive for a 12-month period determined by prorating the combined volume, based on records, produced or received during those months of operation; and

  • (c) in any other case, the combined volume of hydrocarbon gas, expressed in standard m³, that the facility is expected to produce or receive during the 12-month period that begins after its first month of operation, as determined in accordance with the applicable method set out in section 23.

• Marginal note:Well completion

  (2) For the purpose of subsection (1), if a well at the facility undergoes well completion during a given month, the portion of the combined volume referred to in that subsection that corresponds to the production of hydrocarbon gas from the well must be based on the volume of hydrocarbon gas expected to be produced by the well for the 12-month period after the given month, as determined in accordance with the applicable method set out in section 23.

Marginal note:Records — non-application

21 If none of sections 26 to 45 apply, for a given month, in respect of an upstream oil and gas facility, a record, with supporting documents, must be made that indicates

• (a) the gas-to-oil ratio and the volume of the hydrocarbon liquid produced or expected to be produced, expressed in standard m³, during the given month;

• (b) the combined volume of hydrocarbon gas produced and received, expressed in standard m³, during the given month; and

• (c) for a well at the facility that undergoes well completion during the given month, the volume expected to be produced by the well referred to in subsection 20(2).

Marginal note:Records — application

22 A record must be made that indicates the following information for the first month that begins after the facility produces or receives — or is expected to produce or receive — a combined volume of more than 60 000 standard m³ of hydrocarbon gas for a period of 12 months as determined in accordance with subsection 20(1):

• (a) that first month and the calendar year that includes that first month; and

• (b) the combined volume, along with an indication as to which of paragraphs 20(1)(a) to (c) was used to determine that volume.

Determination of Volume of Gas

Marginal note:Applicable methods

• 23 (1) For the purpose of sections 20 and 26, the volume of hydrocarbon gas produced, received, vented or destroyed at, or delivered from, an upstream oil and gas facility must be determined in accordance with the applicable method set out in

  • (a) the document entitled Measurement Guideline for Upstream Oil and Gas Operations, published by the Oil and Gas Commission of British Columbia on March 1, 2017, if the facility is located in British Columbia;

  • (b) the document entitled Measurement Requirements for Oil and Gas Operations and commonly referred to as Directive PNG017, published by the Government of Saskatchewan on August 1, 2017 (version 2.1), if the facility is located in Manitoba or Saskatchewan; and

  • (c) the document entitled Measurement Requirements for Oil and Gas Operations and commonly referred to as AER Directive 017, published by the Alberta Energy Regulator on March 31, 2016, in any other case.

• Marginal note:Directive PNG017 and AER 017

  (2) Despite paragraphs (1)(b) and (c), for the purpose of sections 12.2.2.1 and 12.2.2.2 of the Saskatchewan Directive PNG017 and of the AER Directive 017, the gas production per well per day is to be determined

  • (a) if the expected gas production is greater than 2 000 standard m³ per day, by direct measurement; and

  • (b) in any other case,

    • (i) by direct measurement, or

    • (ii) by means of an estimate based on a gas-to-oil ratio determined

      • (A) in accordance with section 24, or

      • (B) by the formula

        −0.5P_w + 150

        where

        P_w

        is the average volume, expressed in standard m³, of oil produced by the well for a day during the most recent month of production.

Marginal note:Determination of gas-to-oil ratio

• 24 (1) The determination of a gas-to-oil ratio for the purpose of clause 23(2)(b)(ii)(A) is made using the formula

  G/O

  where

  G

  is the average volume of gas produced by the well measured over a continuous period — of at least 72 hours or at least 24 hours, determined, as the case may be, in accordance with subsection (2) or (3) — under conditions, in particular in respect of flow rate and operating conditions, that are representative of the conditions that occurred during the most recent month of production; and

  O

  is the average volume of oil produced by the well over the period that is used for the determination of G, based on measurements taken in accordance with subsection (4) as prorated to that period and under conditions, in particular in respect of flow rate and operating conditions, that are representative of the conditions during the most recent month of production.

• Marginal note:Determination of value of G

  (2) The measurements to determine the value of G must be taken over a continuous period of at least 72 hours with a continuous measuring device or using a flow meter with at least one reading taken every 20 minutes.

• Marginal note:Exception

  (3) Despite subsection (2), the measurements to determine the value of G may be taken over a continuous period of at least 24 hours, if

  • (a) the flow rate of gas from the well is greater than 100 standard m³ per day; and

  • (b) the measurement is taken

    • (i) with a continuous measuring device and the variation of flow rate in that continuous period is such that the average flow rate for any 20-minute period is within ±5% of the average flow rate, or

    • (ii) using a flow meter with at least one reading taken every 20 minutes within that continuous period and the variation of flow rate in that continuous period is such that 95% of the readings taken are within ±5% of the average flow rate.

• Marginal note:Determination of the value of O

  (4) The measurements to determine the value of O must be taken after the water has been separated from the liquid produced from the well and taken

  • (a) over the continuous period used to determine the value of G with a continuous measuring device that has a maximum margin of error of ±0.1 standard m³; or

  • (b) over a continuous period of at least 10 days that includes the continuous period used to measure G with a continuous measuring device that has a maximum margin of error of ±1 standard m³ and with the variation of flow rate in that continuous period such that the measured volume of oil produced for any day is within ±5% of the measured volume of oil produced for any other day in that continuous period.

• Marginal note:Steady state

  (5) A measurement taken under any of subsections (2) to (4) must be taken while the well is operating in a steady state, that is, it must be taken only if no adjustment that could result in a change to the oil or gas production rates has been made to the production parameters for at least 48 hours before the measurement is taken.

• Marginal note:Measuring equipment — directives

  (6) The continuous measuring device or flow meter used to determine the gas-to-oil ratio must meet the requirements of section 2 of the Saskatchewan Directive PNG017 or section 2 of the AER Directive 017.

• Marginal note:Frequency of determination

  (7) A determination of the gas-to-oil ratio must be made

  • (a) at least once per year and at least 90 days after a previous determination, if

    • (i) in the case of an initial determination, the expected flow rate of the gas is at most 500 standard m³ per day, and

    • (ii) in any other case, the flow rate of the gas according to the most recent determination was at most 500 standard m³ per day;

  • (b) at least once every six months and at least 45 days after a previous determination, if

    • (i) in the case of an initial determination, the expected flow rate of the gas is greater than 500 standard m³ per day and at most 1 000 standard m³ per day, and

    • (ii) in any other case, the flow rate of the gas according to the most recent determination was greater than 500 standard m³ per day and at most 1 000 standard m³ per day; and

  • (c) at least once every month and at least seven days after a previous determination, if

    • (i) in the case of an initial determination, the expected flow rate of the gas is greater than 1 000 standard m³ per day and at most 2 000 standard m³ per day, and

    • (ii) in any other case, the flow rate of the gas according to the most recent determination was greater than 1 000 standard m³ per day and at most 2 000 standard m³ per day.