Alberta delays methane proposals in battle over targets
OTTAWA Alberta has delayed the release of its draft methane regulations by several weeks after earlier negotiations ran aground, a result of disputes over how oil and gas companies will be forced to meet their emissions targets.
The provincial energy ministry confirmed Wednesday that it has extended discussions over its methane proposals for two weeks, now set to conclude by Dec. 1. Officials had earlier said the regulatory proposal would be released in early November.
The ministry has also expanded the main committee involved in the draft regulations to include oil and gas producer Canadian Natural Resources Ltd., the Canadian Association of Petroleum Producers, and environmental groups such as the U.S.-based Environmental Defense Fund, the Pembina Institute and Ecojustice.
In a Nov. 9 letter obtained by the Financial Post, Alberta Minister of Energy Margaret McCuaigBoyd told the committee that discussions would take place in Calgary between Nov. 13 and Dec. 1. She said the next round of negotiations would require a “renewed commitment” by all parties in order to hammer out a final proposal.
The Alberta energy ministry said Wednesday that it had invited some members of Environment Canada to attend the next two weeks of discussions as observers, aimed at getting the federal office up to speed on its draft proposals.
“Having the federal government present for these discussions will set us up well to achieve equivalency as we implement a madein-Alberta approach,” the Alberta ministry said in an emailed statement.
Delays come as environmental groups and industry spar over how methane reduction targets will be enforced. Industry has long requested a so-called “outcome based” approach that would measure total methane emission reductions, while environmentalists and the federal government have said that specific sources of methane emissions will need to be more tightly regulated.
“We know Alberta’s oil and gas industry and environmental groups are up to the challenge,” Alberta Energy said in an emailed statement Wednesday. “Their early action and commitment to working with us to get this right means we’re well on our way to an Alberta-made solution.”
The delays also come as the Alberta NDP faces increasing political pressure from the newly formed United Conservative Party after it elected former federal cabinet minister Jason Kenney as its leader in late October.
Recent polling data suggest the UCP would win handily over Rachel Notley’s NDP if an election were held today, due partly to the view by some in the Alberta industry that tightening environmental regulations have made it less competitive compared to U.S. producers.
Canada and the U.S. in early 2016 agreed to reduce methane emissions by 40 to 45 per cent below 2012 levels by 2025. Provincial methane regulations will have to fit within that overall federal target, which will ultimately be decided through equivalency agreements set to begin after Alberta releases its proposal.