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Critical Success Factors in Flaring & Venting Reduction: the Alberta/Canada Experience. George Eynon PGeo Board Member. Key Elements. CONTEXT Alberta’s history of industry regulation Recent history of flaring & venting DATA Measurement, collection, and public availability
George Eynon PGeoBoard Member
Canada first to submit a Country Implementation Plan
Required co-operationamong provinces
Canadian Flaring and Venting Regulators Forum [CFVRF]created
Provincial ownership of resources
Legislated oversight of industry
75-year experience in regulation
Arms’ length quasi-judicial tribunal
Technical expertise; 900 staff
…to ensure that development of Alberta’s energy resources is orderly, efficient and effective
…and is conducted in a manner that is safe, fair, responsible, and in the public interest
1930s massive flaring at Turner Valley oil fields nr Calgary
1938 Alberta created regulator Gas Conservation Board
1949 ERCB authorized to regulate removal of gas from Alberta
1950s NGTL created to gather gas in Alberta & TCPL created to move gas across North America
Gas required for pipelinesso conservation required
Alberta Dept of Energy
P&NG licenses & leases
ERCB at arms length
Delegated regulation-making authority
Data gathering & analysis
Compliance infractions publically reported
Alberta economy resource-based
oil & gas development facilitated by public availability of data/information to industry, government, and NGOs
ERCB role and reputation
based on collection and analysisof information and data
If it gets measured, it gets doneNo data, no analysis!
Shows where to focus efforts
positive pressure on companies to do better
recognition for those that do a good job
shows where to focus our efforts
Federal/Provincial terminologyneeds to be harmonized
NRCan/Environment Canadaworking with Provinces e.g., “fuel gas” definition and reporting requirements
Mineable oil sands
Difficult to estimate vented volumes
What emissions factor should be to estimate volumes of gas emitted per cubic tonne of oil sands?
Not previously reported in annual reports.
Flare and vent data reported to ESRD not ERCB
May change with a single regulator
Gas Conservation Orders
set level of conservation
based on economic conservation
CASA – industry, government, public
now incl. municipalities, communities, NGOs, etc
ERCB sets economic parameters
Ability to audit and review
Based on gas conservation economics only
NPV of sales revenues less than…
NPV of conservation costs
then conservation required
Low gas prices affect economics…
result in less conservation
Companies only required to consider the gas;gas/oil ratio needs to be used?
The NPV threshold needs revision?
Using gas as fuelat wells and batteriesalso needs to be encouraged
Canada’s GHG emissions policy
to play a larger role
Harmonization of definitionsacross Canadian jurisdictions?
Revise economic testin Alberta if gas prices remain low?Impacts of URRF?Alberta Unconventional Resources Regulatory Frameworkbased on play trends/project areas
Impact of “single regulator”and Land Use Frameworklegislation in Alberta?
Gas conservation orders again?