Assessing the effectiveness and efficiency of methane regulations in British Columbia, Canada

ABSTRACT

Many jurisdictions are introducing methane reduction policy as part of climate commitments, with a focus on the oil and gas supply chain. Periodic comprehensive leak detection and repair (LDAR) surveys or screening leak detection and repair surveys are required in the British Columbia, Canada oil and gas sector to reduce unintentional methane emissions caused by leaking infrastructure. By finding and fixing leaks quickly, emissions of methane, a potent greenhouse gas, are reduced. In this study, we explored how effectively British Columbia’s regulation, deposited in December 2018, made progress towards meeting the policy objective of a 45% decrease in methane emissions by 2025 from a 2014 baseline. We evaluated the performance and cost effectiveness of regulatory-prescribed LDAR programmes using data collected by the BC Energy Regulator (formerly BC Oil and Gas Commission) for the 2020 year, and survey cost data submitted by service providers. We found that the new regulation was only partially effective due to low compliance rates. We also observed heavy tail leak distributions in LDAR data collected by service companies, but comparatively narrow leak distributions in data from permit holders who internalized LDAR operations, suggesting a difference in work practice or the use of equipment. Comprehensive leak detection surveys were found to be more cost efficient ($23 CAD/tCO₂e reduced) compared to screening surveys ($1,787 CAD/tCO₂e reduced) because more methane leaks are detected in comprehensive assessments. To meet methane reduction targets, we recommend that: 1) jurisdictions work to improve compliance rates by introducing minimum administrative penalties specific to noncompliance; 2) that all future LDAR surveys are instrument-based; 3) limiting turnaround time limits so that repairs are not delayed indefinitely; and 4) that LDAR completed internally by permit holders undergo independent third-party verification.

Key policy insights

• Compliance is a key determinant of regulatory effectiveness.

• Data availability, transparency, and quality is critical to assessing regulatory effectiveness.

• Workers conducting LDAR surveys and measuring leaks must be trained to minimize errors.

• Instrument-based LDAR surveys are more effective and efficient at reducing leaked methane emissions than non-instrument-based methods.

• Instrument-based LDAR surveys can cost effectively reduce leaked methane emissions.

KEYWORDS:

• British Columbia
• Canada
• methane regulations
• oil and gas sector
• methane mitigation
• leak detection and repair

Acknowledgments

We gratefully acknowledge the progressive approach implemented by the BC Energy Regulator to require leak measurement, to publish the LDAR data collected for third-party examination, and for conducting a transparent and inclusive review of regulation. Additionally, we would like to thank the Methane Emissions Reduction Collaborative for their assistance with this study, and the Oil and Gas Research Innovation Society for funding the study.

Additional information

Funding

This work was supported by the BC Oil and Gas Research and Innovation Society (BC OGRIS).