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DEFINING, MEASURING AND
REDUCING FUGITIVE EMISSIONS
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A ROUND TABLE DIALOGUE
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SUMMARY REPORT



BANFF CENTRE
FEBRUARY 10-11, 2011
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2 | P a g e S F U C a r b o n T a l k s C S E E F u g i t i v e E m i s s i o n s R e p o r t
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ACKNOWLEDGEMENTS



Carbon 1a|ks ls a pro[ecL of Lhe Slmon lraser unlverslLy CenLre for ulalogue ln assoclaLlon wlLh
Lhe Segal School of 8uslness, Lhe School of ubllc ollcy and Lhe School for lnLernaLlonal
SLudles. 1he goal of Carbon 1alks ls Lo advance Canadlan global compeLlLlveness by shlfLlng Lo
a low-carbon economy. Carbon 1alks would llke Lo acknowledge Lhe generous conLrlbuLlons of
Lhe Canada Schoo| of Lnergy and Lnv|ronment and ln parLlcular 8ruce Carson, ln co-
sponsorlng and co-hosLlng Lhls workshop. Carbon 1alks would also llke Lo acknowledge Lhe
generous flnanclal conLrlbuLlons of Lhe norLh CrowLh loundaLlon and Lhe ?oung lamlly
loundaLlon.

1hls flnal reporL was complled by Shauna SylvesLer wlLh Lhe supporL of Andrew CoaLes of Lhe
Canada School of Lnergy and LnvlronmenL. We would llke Lo acknowledge all of Lhe
parLlclpanLs for Lhelr commlLmenL, lnslghLs and conLrlbuLlons Lo Lhe dlalogue process.

1he vlews ln Lhls publlcaLlon are a summary of Lhe dlscusslon from Lhe full-day dlalogue. 1hey
do noL reflecL Lhe vlews of Carbon 1alks' sLaff, funders, collaboraLors or Lhe Slu CenLre for
ulalogue.


Carbon 1alks ls parL of Lhe CreaLlve Commons. We lnvlLe you Lo use Lhe maLerlal ln Lhls
handbook, buL please credlL Carbon 1alks and Lhe Slu CenLre for ulalogue.


3 | P a g e S F U C a r b o n T a l k s C S E E F u g i t i v e E m i s s i o n s R e p o r t
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INTRODUCTION

Cn lebruary 10 and 11Lh, Slmon lraser unlverslLy Carbon 1alks and Lhe Canada School of
Lnergy and LnvlronmenL hosLed an lnvlLaLlonal dlalogue aL Lhe 8anff CenLre. 1he sub[ecL of
Lhls dlalogue was deflnlng, measurlng and reduclng fuglLlve emlsslons ln Lhe oll and gas
lndusLry. 1he dlalogue parLlclpanLs lncluded 16 male and female LhoughL leaders from Lhe oll
and gas lndusLry, Lhe provlnclal and federal governmenL, academla, pollcy Lhlnk Lanks and Lhe
envlronmenLal communlLy
1
.

A dlscusslon gulde on fuglLlve emlsslons auLhored by ur. uanlel Savas of Slmon lraser
unlverslLy (Slu) ouLllned Lhe conLexL, Lermlnology, Lechnologles and processes of
measuremenL and mlLlgaLlon, Lhe key challenges, and Lhe proposed pollcy dlrecLlons Lo
regulaLe fuglLlve emlsslons. 1he dlscusslon gulde was dlsLrlbuLed Lo parLlclpanLs one week
prlor Lo Lhe sesslon and provlded a framlng for Lhe roundLable dlalogue.

8ruce Carson, LxecuLlve ulrecLor of Lhe Canada School of Lnergy and LnvlronmenL opened Lhe
sesslon and Shauna SylvesLer, LxecuLlve ulrecLor of Carbon 1alks and lellow aL Lhe Slu CenLre
for ulalogue faclllLaLed Lhe full-day dlalogue process. 1o enable a free exchange of vlews, Lhe
dlalogue was governed by ChaLham Pouse rules whlch sLaLe LhaL parLlclpanLs are free Lo use
Lhe lnformaLlon recelved, buL nelLher Lhe ldenLlLy nor Lhe afflllaLlon of Lhe speaker(s), nor LhaL
of any oLher parLlclpanL, may be revealed."

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!1he number of lnvlLed parLlclpanLs was lnLenLlonally kepL small Lo enable a free-flowlng dlscusslon. arLlclpanLs were lnvlLed based on a
range of crlLerla: experLlse, dlverslLy of experlence and poslLlon. 1he group conslsLed of a provlnclal regulaLor, a federal regulaLor, Lhree non-
governmenL organlzaLlon represenLaLlves, four carbon and emlsslon consulLanLs, flve lndusLry represenLaLlves, Lwo academlcs.!!
4 | P a g e S F U C a r b o n T a l k s C S E E F u g i t i v e E m i s s i o n s R e p o r t
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DEFINING FUGITIVE EMISSIONS

ln seLLlng Lhe conLexL for Lhe dlscusslon, parLlclpanLs were asked Lo deflne fuglLlve emlsslons.
arLlclpanLs recognlzed Lhe broader deflnlLlons emerglng from Lhe lnLergovernmenLal anel on
CllmaLe Change (lCC)
2
buL opLed for a more prec|se def|n|t|on of fug|t|ve em|ss|ons as
"uncontro||ed" or "un|ntent|ona|" re|ease of hydrocarbons from equ|pment |eaks, storage
tanks, |oad|ng, and un|oad|ng.
3


Whlle adopLlng a more narrow deflnlLlon of fuglLlve emlsslons, parLlclpanLs recognlzed Lhe
need Lo address boLh fuglLlve emlsslons and lnLenLlonal emlsslons whlch Lhey deflned as Lhe
contro||ed re|ease of GnGs and a|r po||utants from o|| and gas operat|ons." art|c|pants
proposed that the greatest opportun|ty |n reduc|ng GnGs was from contro||ed re|eases.

noLe: 1hroughouL Lhls reporL, Lhere wlll be references Lo boLh fuglLlve emlsslons and conLrolled emlsslons (also
referred Lo as lnLenLlonal emlsslons or conLrolled releases). Where Lhe Lerm fuglLlve ls used, lL applles Lo Lhe
narrow deflnlLlon ouLllned above. Where Lhe Lerm emlsslons are used lL refers Lo boLh fuglLlve and conLrolled
emlsslons.
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lor Lhe lCC, fuglLlve emlsslons are lnLenLlonal or unlnLenLlonal releases of greenhouse gases from Lhe producLlon, processlng, Lransmlsslon,
sLorage, and dellvery of fossll fuels. Powever, for Lhe lCC, a released gas" LhaL ls combusLed ls only consldered a fuglLlve emlsslon lf lL ls
combusLed for dlsposal (e.g. flarlng aL producLlon faclllLles). lf Lhe heaL generaLed durlng combusLlon ls capLured for use (e.g. heaLlng) or for
sale, Lhen Lhe emlsslons are consldered fuel combusLlon sources, noL fuglLlve emlsslons. 1hls deflnlLlon reflecLs Lhe reporLlng needs Lo meeL
kyoLo requlremenLs, Lhe focus ls on emlsslons LhaL mlghL lmpacL cllmaLe change.
3
Some parLlclpanLs were concerned wlLh Lhe Lerm unconLrolled" and preferred Lhe Lerm unlnLenLlonal, buL recognlzed LhaL boLh were
lmpreclse Lerms for capLurlng Lhe noLlon of unplanned or unexpecLed fuglLlve emlsslons.!
5 | P a g e S F U C a r b o n T a l k s C S E E F u g i t i v e E m i s s i o n s R e p o r t
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MEASURING FUGITIVE EMISSIONS
ln a slmllar veln, parLlclpanLs were asked Lo ldenLlfy Lhe strengths and cha||enges |n measur|ng
fug|t|ve em|ss|ons. arLlclpanLs agreed LhaL advances ln envlronmenLal Lechnologles and
processes over Lhe pasL decade have made lL easler Lo ldenLlfy and monlLor fuglLlve emlsslons.
Powever, due Lo Lhe naLure of fuglLlve emlsslons, lL ls dlfflculL Lo esLabllsh a clear or conslsLenL
basellne from whlch Lo measure reducLlons.
4

arLlclpanLs acknowledged LhaL lL was dlfflculL Lo accuraLely assess Lhe slze of Lhe fuglLlve
emlsslons problem. When adopLlng Lhe narrow deflnlLlon of fuglLlve emlsslons, lndusLry
esLlmaLes ranged for .1 Lo 20 of oll and gas CPC emlsslons. When lncludlng flarlng and
venLlng (Lhe conLrolled or lnLenLlonal emlsslons) Lhese numbers cllmb, alLhough some
parLlclpanLs challenged Lhe pro[ecLlons of Lhe naLlonal emlsslons lnvenLory and Lhe uS
LnvlronmenLal roLecLlon Agency. Some parLlclpanLs expressed serlous concern LhaL Lhere was
no clear consensus on Lhe slze of Lhe problem and no clear measuremenL of Lhe conLrolled
emlsslons.
3
All parLlclpanLs agreed LhaL when fuglLlve and conLrolled emlsslons were
comblned, Lhe percenLage of CPC emlsslons ln Canada were slgnlflcanL and warranLed more
coordlnaLed acLlon.

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!ApproxlmaLe raLes can someLlmes be found buL duraLlons and raLe changes over Llme are always unknown, and musL be esLlmaLed wlLh
levels of uncerLalnLy LhaL may (should) be unaccepLable Lo an audlLor or verlfler.!
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!8ased on Lhe mosL recenL Canadlan Creenhouse Cas lnvenLory (2009), fuglLlve emlsslons uslng Lhe lCC deflnlLlon ln Lhe oll and gas lndusLry,
represenL approxlmaLely 9 of Canada's LoLal emlsslons, and aL leasL half Lhe upsLream convenLlonal oll and gas lndusLry emlsslons. Whlle
some parLlclpanLs supporLed Lhe governmenL's flgures, oLhers challenged Lhem for dlfferenL reasons. Some argued LhaL ln fleld LesLs esLlmaLes
of fuglLlve emlsslons appeared oversLaLed and ln oLher fleld LesLs, Lhe esLlmaLes were slgnlflcanLly undersLaLed. CovernmenL offlclals agreed
LhaL more preclslon ln quanLlflcaLlon meLhods and conslsLency ln approaches Lo measuremenL were necessary Lo develop accuraLe flgures. !
6 | P a g e S F U C a r b o n T a l k s C S E E F u g i t i v e E m i s s i o n s R e p o r t
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REGULATING FUGITIVE EMISSIONS

Some lndusLry offlclals have moved Lowards creaLlng a zero Lolerance culLure wlLhln Lhelr
companles for fuglLlve emlsslons. CLhers have looked Lo Lhe Canadlan AssoclaLlon of
eLroleum roducers and provlnclal governmenLal dlrecLlves (where Lhey exlsL) for regulaLory
guldance. MosL parLlclpanLs suggesLed LhaL |ndustry shou|d str|ve for "zero- to|erance" on
re|ease of fug|t|ve em|ss|ons (recognlzlng LhaL lL ls an asplraLlonal goal because zero fuglLlve
emlsslons are lmposslble Lo achleve).
arLlclpanLs expressed frusLraLlon over Lhe lack of coordlnaLlon among [urlsdlcLlons across Lhe
counLry whlch has creaLed a paLchwork regulaLory reglme on emlsslons. 1hls ln Lurn, has
creaLed an unlevel playlng fleld for lndusLry. Some parLlclpanLs expressed Lhe hope LhaL
convergence mlghL lead Lo greaLer acLlon, and oLhers cauLloned LhaL lncreased federal
engagemenL wlLhouL provlnclal coordlnaLlon may resulL ln regulaLory uncerLalnLy.
arLlclpanLs agreed (wlLh one ouLller) LhaL because |t |s d|ff|cu|t to quant|fy fug|t|ve em|ss|ons,
offsets and cred|ts are not a v|ab|e, equ|tab|e or econom|ca||y sound so|ut|on. arLlclpanLs
argued LhaL companles should be expecLed Lo malnLaln Lhelr equlpmenL and should noL recelve
credlLs or offseLs for dolng so. SafeLy and rellablllLy are Lhe lncenLlves Lo mlLlgaLe fuglLlve
emlsslons noL economlcs or offseLs".! Cffsets from the contro||ed re|eases, however were
recogn|zed as a potent|a| dr|ver for act|on |n reduc|ng em|ss|ons.!![lurLher dlscusslon of
regulaLlng fuglLlve emlsslons ls addressed ln Lhe recommendaLlons secLlon]. !


7 | P a g e S F U C a r b o n T a l k s C S E E F u g i t i v e E m i s s i o n s R e p o r t
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BARRIERS TO REDUCING FUGITIVE EMISSIONS
ln Lhe afLernoon sesslon, lndlvldual parLlclpanLs posLed Lhe key barrlers Lo reduclng boLh
fuglLlve and conLrolled emlsslons under flve headlngs: pollcy, corporaLe leadershlp,
measuremenL, Lechnologles and processes, capaclLy bulldlng and educaLlon, oLher. 1he
barrlers whlch were ldenLlfled lncluded:

o||cy
Lack of regulaLory cerLalnLy and predlcLablllLy
no naLlonal framework on energy and cllmaLe change
Lack of a sLrong global prlce slgnal on carbon
Lack of reglonal coordlnaLlon among [urlsdlcLlons whlch can creaLe an unlevel playlng fleld for lndusLry
no forum for reglonal [urlsdlcLlonal coordlnaLlon
A regulaLory framework LhaL ls based on a reLurn on lnvesLmenL analysls and does noL address
envlronmenLal drlvers or adequaLely address CPC's
ulfferlng approaches across [urlsdlcLlons send confllcLlng messages (Wlll pollcy convergence lead Lo
beLLer acLlon?)
need greaLer awareness of Lhe relaLlve conLrlbuLlon of fuglLlve and conLrolled emlsslons Lo Lhe larger
alr/CPC lssues (WhaL ls Lhe conLrlbuLlon of mlLlgaLlon?)
1oo much of a focus on fuglLlve emlsslons means less resources Lo solve conLrolled emlsslons
SLralghL-forward procedures are requlred for fleld sLaff. Speclflc regulaLlons and procedures ofLen do noL
conslder lmpacLs Lo oLher lmporLanL varlables.
1here needs Lo be a beLLer balance beLween very prescrlpLlve and very loose fuglLlve and conLrolled
emlsslon regulaLlons.
CPCs noL a clear drlver ln CASA ulrecLlve 60 dlscusslons.
CPC emlsslons of fuglLlve emlsslons are noL regulaLed

Corporate Leadersh|p
upsLream gas saved only has a fuLure (dlscounLed) or CPC value - noL a revenue Loday
1here ls a lack of lncenLlves for workers Lo address fuglLlve emlsslons
More case sLudles are needed
Lack of secLor wlde coordlnaLed efforL
no shareholder consensus on dlrecLlon Lo reduce CPC's
Lack of lndusLry consensus, commlLmenL and acknowledgemenL of Lhe slze of Lhe problem
lndusLry opposed Lo regulaLlon changes - Lo preserve offseL value
need more effecLlve Lracklng and leak repalr managemenL sysLems
ulverslLy of secLor - small, medlum, large operaLors makes lL dlfflculL Lo deflne a conslsLenL approach
8ecord keeplng can be onerous

Measurement
ClarlLy or magnlLude of emlsslons - lack of accuracy ln volume measuremenLs (mllllons of small sources)
ComplexlLy of operaLlons works agalnsL accuraLe measuremenL
MeasuremenL can be cosLly
lnspecLlon challenges
CosLs for achlevlng carbon value may preclude parLlclpaLlon ln volunLary programs
1here ls a lack of good daLa on Lhe cosL of reducLlon or vlrLual ellmlnaLlon
lnformaLlon lacklng on reducLlon poLenLlal for 8M/Command/ConLrol approaches
locuslng on measuremenL of fuglLlve emlsslons dlsLracLs from reduclng overall emlsslons - llnd and flx vs.
flnd, quanLlfy Lhen flx
luglLlve emlsslons cannoL be quanLlfled Lo a hlgh enough degree of accuracy Lo be commodlLlzed
8 | P a g e S F U C a r b o n T a l k s C S E E F u g i t i v e E m i s s i o n s R e p o r t
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1echno|ogy rocesses
CapLure of fuglLlves may noL always resulL ln neL llfe cycle beneflLs
1he economlcs of addresslng small fuglLlve emlsslons wlLh and low volumes makes lL dlfflculL Lo lnvesL
and develop lnnovaLlve Lechnologles
Lack of LransparenL lnformaLlon abouL reducLlon operaLlons from a varleLy of conLrolled sources
Lack of adequaLe lnsLrumenLs Lo provlde accuraLe measuremenLs
1echnology does noL exlsL for small volumes
1ransacLlon cosLs of obLalnlng CC
2
- credlLs" pracLlcally ellmlnaLe Lhls powerful lncenLlve for emlsslon
reducLlon and new Lechnology developmenL
CaplLal Lurnover raLes and Lechnologlcal lock-ln

Capac|ty 8u||d|ng & Lducat|on
Workers aren'L Lralned Lo locaLe, and repalr leaks
lnconslsLenL malnLenance pracLlces
CfLen noL parL of Lhe owner's core compeLency
luglLlve emlsslons are one varlable - all declslons Lo reduce fuglLlve emlsslons lmpacL oLher varlables
Lack of people - hard enough Lo keep oll and gas flowlng Lo meeL demand


9 | P a g e S F U C a r b o n T a l k s C S E E F u g i t i v e E m i s s i o n s R e p o r t
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POLICY RECOMMENDATIONS

lor Lhe balance of Lhe workshop, parLlclpanLs developed opLlons for addresslng Lhe pollcy
challenges ln reduclng fuglLlve and conLrolled emlsslons. A serles of recommendaLlons were
developed and agreed Lo by all parLlclpanLs:

1. A pr|ce on carbon wou|d st|mu|ate further reduct|ons |n GnGs |n Canada.

2. rov|nc|a| and reg|ona| [ur|sd|ct|ons need to further coord|nate and a||gn the|r
regu|at|ons on fug|t|ve and contro||ed em|ss|ons.

3. 1echn|ca| Support or Innovat|on Iunds shou|d be |nvested |n techno|ogy or processes
to reduce fug|t|ve and contro||ed em|ss|ons (espec|a||y where an econom|c cha||enge
ex|sts wh|ch underm|nes act|on or where |nvestment can demonstrate a greater
|mpact).

4. ub||c report|ng of GnG em|ss|ons shou|d be encouraged and enhanced (e.g. through
aud|t or secur|t|es report|ng).

S. Governments shou|d rev|ew regu|atory thresho|ds (e.g. 100,000 tonnes |n A|berta) to
determ|ne |f they are appropr|ate |n address|ng fug|t|ve and contro||ed em|ss|ons
(part|cu|ar|y g|ven the number of sma||er fac|||t|es).

6. 1he reduct|on of GnGs must be cont|nua||y |mproved - |n part|cu|ar at the |oca| |eve|
(for examp|e |n A|berta, GnG's cou|d be addressed |n D|rect|ve 60 or through the
C|ean A|r Strateg|c A|||ance process).

7. 1he regu|at|on of fug|t|ve and contro||ed em|ss|ons shou|d be addressed w|th|n a
broader nat|ona| framework on energy.

ln Lhe closlng sesslon, parLlclpanLs evaluaLed Lhe sesslon agalnsL Lhelr expecLaLlons and
provlded addlLlonal lnslghLs for Lhe flnal reporL. Some parLlclpanLs hlghllghLed LhaL whlle
WesLern Canada mlghL be a leader lnLernaLlonally ln addresslng fuglLlve and conLrolled
emlsslons ln Lhe upsLream oll and gas secLor, greaLer regulaLory clarlLy and concreLe acLlon on
conLrolled emlsslons was necessary across Lhe counLry. Cverall, parLlclpanLs appreclaLed Lhe
dlalogue deslgn. 1hey found LhaL Lhe dlscusslon gulde, formaL, faclllLaLlon and dlverslLy of
perspecLlves around Lhe Lable creaLed a unlque opporLunlLy for open exchange. arLlclpanLs
recommended LhaL Lhe recommendaLlons of Lhe dlalogue be clrculaLed broadly Lhrough Lhe
CSLL and Slu Carbon 1alks Lo federal and provlnclal offlclals, lndusLry assoclaLlons, buslness
and nCC leaders.

10 | P a g e S F U C a r b o n T a l k s C S E E F u g i t i v e E m i s s i o n s R e p o r t
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APPENDIX A: DIALOGUE AGENDA
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Iebruary 10, 2011
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Lvenlng 8ecepLlon and ulnner
Welcome and lnLroducLlon - 8ruce Carson
arLlclpanL lnLroducLlons

Iebruary 11, 2011

Morn|ng Cpen|ng and Context sett|ng - 8ruce Carson
Cverv|ew of the Day and Introduct|ons - Shauna SylvesLer

Sess|on #1: Def|n|ng Iug|t|ve Lm|ss|ons
ls Lhere a clear deflnlLlon of fuglLlve emlsslons? ls lL lmporLanL Lo dlsLlngulsh beLween
lnLenLlonal and unlnLenLlonal fuglLlve emlsslons? Can we agree on a deflnlLlon golng
forward for Lhls dlscusslon?

Sess|on #2: Measur|ng Iug|t|ve Lm|ss|ons
Pow are we measurlng luglLlve Lmlsslons? Pow accuraLe are our measuremenLs?
WhaL challenges do we have ln measurlng fuglLlve emlsslons? Pow are companles
addresslng Lhese challenges? WhaL ls Lhe slze of Lhe problem?

Sess|on #3: Approaches for Mon|tor|ng and keduc|ng Iug|t|ve Lm|ss|ons
Mapplng Lhe 8egulaLory 8eglme - from Lhe local Lo Lhe global


Afternoon Sess|on #4: Ident|f|cat|on of Cha||enges]8arr|ers to reduc|ng fug|t|ve
Lm|ss|ons
WhaL are Lhe key challenges and barrlers Lo reduclng fuglLlve emlsslon?
1. CorporaLe CommlLmenL/Leadershlp
2. ollcy/ 8egulaLlon (provlnclal and federal)
3. rocesses and 1echnology
4. CapaclLy 8ulldlng/LducaLlon
3. CLher (only lf needed)


Sess|on #S: Strateg|es to Address 8arr|ers
WhaL sLraLegles exlsL or should be developed Lo address Lhe pollcy barrlers Lo reduclng
fuglLlve emlsslons?

Sess|on #7: kecommendat|ons for Mov|ng Iorward

Sess|on #8: Summary of kecommendat|ons and Next Steps - Shauna SylvesLer and
8ruce Carson

Sess|on #9: I|na| kound and C|os|ng


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11 | P a g e S F U C a r b o n T a l k s C S E E F u g i t i v e E m i s s i o n s R e p o r t
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