Ottawa classifies ‘ upstream’ emissions

•The federal government has officially slapped a definition on “upstream emissions ,” which are now being factored into all environmental reviews f or major oil and gas projects.

The Department of Environment and Climate Change quietly released its proposal Friday for what should be under the classification during environmental assessments of large energy projects—explainin gt hat the extraction, processing , handling and transportation of petroleum could all be factored into the equation.

“‘ Upstream’ includes all industrial activities from the point of resource extraction to the project under review,” the government said in a notice of the proposed regulations issued Friday in the Canada Gazette.

“The specific processes included as upstream activities will vary by resource and project type, but in general they include extraction, processing , handling and transportation.”

Environment Minister Catherine McKenna and Natural Resources Minister Jim Carr announced in late January the federal government would overhaul how it examines major energy projects, in order to put more focus on greenhouse gas emissions — including the assessment of so- called upstream emissions created by extracting or producing petroleum.

But what exactly would fall under that definition has been the subject of controversy, as the Liberal government prepares a pan- Canadian strategy for combating climate change.

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 associated with the project, “including those asso ciated with the production of steam or hydrogen used by upstream facilities.”

The second will be a discussion of the project’s potential impact on Canadian and global GHG emissions.

Examples of what could be considered upstream greenhouse gas emissions include:

Extraction—crude oil and gas wells and oilsands mining and in situ facilities;

Processing—field processing and upgrading;

Handling—product transfer at terminals; and

Transportation—any pipeline operation in advance of the project.

Stakeholders such as oil and gas companies, pipeline proponents, environmental groups and average Canadians will have 30 days to comment on the planned regulations.

The second factor considered in the assessment of upstream GHGs — t he discussion part—will assess whether the estimated emissions would likely occur even if the project were not built.