(Saskatchewan) Oil and Gas Conservation Amendment Act and Emissions Management Regulations

The Saskatchewan government implemented the Oil and Gas Conservation Amendment Act and Emissions Management Regulations in 2020 to facilitate emissions reductions in the oil and gas sector. 
The Regulations apply to business associates (licensees) of oil and gas facilities whose combined potential emissions are greater than 50,000 tonnes of CO2e per year. Regulated business associates are required to accurately measure and report volumes of associated gas in the form of carbon dioxide equivalent and according to the methodologies prescribed by the Regulations. Business associates must ensure that combined emissions from all owned facilities do not exceed the emission limit established by the Regulations. In the case that the emissions limit is exceeded, an administrative penalty will be incurred of $50 per tonne of excess emissions. A business associate may apply for the deferral of an administrative penalty on the basis of undertaking a qualifying conservation project, which may include:

• a gas plant and associated infrastructure capable of receiving and processing associated gas for commercial sale;
• a transmission pipeline capable of delivering gas to an existing gas plant or connecting to an existing transmission pipeline;
• an electrical generation facility and associated infrastructure capable
  of using gas to generate electricity for commercial sale or own use;
• any other project that uses gas for purposes other than flaring or
  incineration and that is a productive use of gas.

As of January 1, 2024, all business associates must submit an emissions reduction plan containing measures to bring facilities into regulatory compliance and to meet the established emissions limits. 
Part III of the Act establishes the Oil and Gas Orphan Fund to provide financing for the abandonment, restoration, remediation or reclamation of wells and facilities.

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