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OTTAWA – The federal government has officially slapped a definition on “upstream emissions,” which are now being factored into all environmental reviews for major oil and gas projects.
The Department of Environment and Climate Change quietly released its proposal Friday for which should be come under the classification during environmental assessments of huge energy projects – explaining the extraction, processing, handling and transportation of petroleum could all be factored into the equation.
“‘Upstream’ includes all industrial activities in the point of resource extraction to the project under review,” the government said inside a notice of the proposed regulations issued Friday within the Canada Gazette.
“The specific processes included as upstream activities will vary by resource and project type, however in general they include extraction, processing, handling and transportation.”
Environment Minister Catherine McKenna and Natural Resources Minister Jim Carr announced at the end of January the us government would overhaul how it examines major energy projects, to be able to put more focus on greenhouse gas emissions – such as the assessment of so-called upstream emissions created by extracting or producing petroleum.
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But just what would come under that definition continues to be the topic of controversy, as the Liberal government prepares a pan-Canadian strategy for combatting global warming.
The government’s proposed methodology says the assessment of upstream GHGs will consist of two parts.
The first will be a quantitative estimation of GHG emissions released as a result of upstream production linked to the project, “including those linked to the production of steam or hydrogen used by upstream facilities.”
The second will be a discussion from the project’s potential effect on Canadian and global GHG emissions.
Examples of the items could be considered upstream greenhouse gas emissions include:
Extraction – oil and gas wells and oil sands mining as well as in situ facilities;Processing – field processing and upgrading;Handling – product transfer at terminals; andTransportation – any pipeline operation in advance of the work.
Stakeholders like oil and gas companies, pipeline proponents, environmental groups and average Canadians may have 30 days to discuss the planned regulations.
The proposed rules say that, when possible, GHG estimates calculated through the authorities will be validated against estimates developed from other amounts of government or organizations utilizing their own emission and production projections.
For example, in the case of the North american liquefied natural gas project in B.C., the department estimated emissions using a projection from the Pembina Institute, an eco think-tank, along with a report by the B.C. government.
The second factor considered within the assessment of upstream GHGs – the discussion part – will assess if the estimated emissions would likely occur even if the project weren’t built.
As part of this calculation, the department will examine future Canadian resource production forecasts under various price scenarios; potential alternative markets and modes of transportation and their costs; and other Canadian and global market conditions, the proposed regulations say.
The specific processes included as upstream activities will be different by resource and project type, however in general they include extraction, processing, handling and transportation.
As well, the discussion will also examine the impact of the project’s potential GHG emissions on overall Canadian greenhouse gas emissions and, where possible, on global GHGs.
The government is focusing on a brand new, permanent environmental assessment process that is likely to have a “number of years” to develop, McKenna said in January.
In the meantime, new interim measures will be applied when reviewing major energy projects like oil and gas pipelines, oil sands developments, and liquefied natural gas projects. Those includes an assessment of all direct and upstream greenhouse gas emissions associated with projects under review.
The new interim rules will affect environmental assessments of TransCanada’s proposed Energy East Pipeline from Alberta to New Brunswick and Kinder Morgan’s proposed Trans Mountain pipeline expansion from Alberta to Burnaby, B.C.
Also falling under the new rules would be the North american LNG project and the Woodfibre LNG project near Squamish, B.C..
McKenna announced late Friday the government has completed its environmental review of the Woodfibre LNG project and determined it “isn’t likely to result in significant adverse environmental effects.”
? Email: jfekete@postmedia.com | Twitter: jasonfekete
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