On July 21, 2014, the BC Oil and Gas Commission (OGC) enacted
the Liquefied Natural Gas Facility
Regulation1 (LNG Regulation) under the
authority of the Oil and Gas Activities Act
(OGAA).2 On the heels of BC's increasing emphasis on
the liquefied natural gas (LNG) industry, the LNG Regulation
expands and updates the sparse LNG-related provisions which were
previously in the Pipeline and Liquefied Natural Gas Facility
Regulation,3 which consequently has now been
amended by removing the LNG provisions and been renamed the
Pipeline Regulation. In addition, the Consultation and
Notification Regulation4 under the OGAA was amended
to include consultation and notification requirements for proposed
activities that include LNG facilities.
The new LNG Regulation is branded by the OGC as a
"technical regulation designed to comprehensively address
regulatory aspects associated with proposed small- and large-scale
LNG facilities". The OGC has stated the LNG Regulation is
designed to be flexible enough to cover any export facility –
small or large; on- or off-shore; constructed entirely in BC or
where facility modules are constructed and assembled outside of BC
and transported to the project site. The LNG Regulation's
comprehensive framework includes provisions related to:
permitting application process;
construction, engineering design and LNG siting
site restoration after construction;
pre-operation testing, hazard analysis and risk
safety and loss management programs;
emergency planning and response;
flaring and venting limits; and
noise and light control.
The OGC has stated that while parts of the LNG Regulation are
prescriptive, others provide a choice to applicants and the LNG
Regulation allows proponents to propose alternative approaches as
long as these alternatives meet or exceed public safety and
environmental protection requirements. The LNG Regulation also
contains a general exemption provision allowing an official to
exempt an LNG facility permit holder from complying with one or
more of the provisions in the LNG Regulation.
As a companion to the LNG Regulation, the OGC released its Liquefied Natural Gas Permit Application and
Operations Manual (Manual), which is a new document
intended to provide guidance to applicants that wish to construct
and operate LNG facilities. The Manual outlines the requirements
and procedures for permit applications and the regulatory
milestones and requirements during the construction, operation and
site restoration of the facility. It also contains a useful summary
of other related elements of the regulatory environment regarding
LNG facilities, including references to regulation of water use by
LNG proponents can be expected to take significant interest in
the LNG Regulation as it will form an essential part of the
developing regulatory regime for LNG in BC.
Canada is a constitutional monarchy, a parliamentary democracy and a federation comprised of ten provinces and three territories. Canada's judiciary is independent of the legislative and executive branches of Government.
The Government of Alberta recently announced a number of policy changes that will impact the Alberta Electricity Market, composed of its generators, transmitters, distributors, retailers, electricity consumers and wholesale electricity market.
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