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Canadian Oil, Gas and Energy Regulatory Alert Sample Issue E-mail
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Report No. 2009-20 Bi-weekly Listing of New Legislation

Index

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Canadian Oil Gas & Energy Regulatory Alert (COGERA) references current federal and provincial bills, regulations, notices and proclamations considered by our expert editors to be of interest to all those with responsibilities for oil, gas and energy management.

Wherever possible, direct links to the Internet are provided, making COGERA a reilable portal capable of immediately linking subscribers to an almost unlimited resource of current industry-related targeted draft legislation, proposals, verbatim acts, regulations, source documents, ministerial speeches, industry standards and technical compliance guidelines.

Each edition of COGERA cumulatively builds the COGERA REFERENCE ARCHIVE, which is searchable by keyword through the host Templegate Information Services website and which is available to all COGERA subscribers.

COGERA subscribers are invited to participate in adding to the comprehensive nature of this service by suggesting content areas to be tracked on a regular basis. Wherever possible COGERA editors will include information of specific interest to its subscribers. For more informaiton, or to subscribe now, contact COGERA staff directly at:Templegate Information Services at (416) 920-0768 or send your suggestions in an email to publications@templegateinfo.com

Note: Although every effort has been made to ensure the accuracy of the information included in the Regulatory Alert as of the date on which it was received, legislation, regulations and government policies are all subject to frequent change. Accordingly, Templegate Information Services Inc. cannot assume any responsibility for actions taken solely or principally on the basis of the information contained in this Regulatory Compliance Alert. Subscribers are encouraged to consult with their professional advisors regarding the applicability of any reference contained in this professional information service.

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Federal government initiatives

BILLS

Bill C-311 An Act to ensure Canada assumes its responsibilities in preventing dangerous climate change (a private member's bill tabled February 10, 2009, by Bruce Hyer, NDP, Thunder Bay-Superior North), passed second reading April 1, 2009 and is currently under consideration.The bill is intended to ensure that Canada commits to a long-term target to reduce Canadian greenhouse gas emissions to a level that is 80 per cent below the 1990 level by the year 2050 and by establishing interim targets for the period 2015 to 2045.

REGULATIONS
Canada Gazette, Part II December 9, 2009
Gazette: http://www.gazette.gc.ca/rp-pr/p2/2009/2009-12-09/html/index...
Gazette pdf: http://www.gazette.gc.ca/rp-pr/p2/2009/2009-12-09/pdf/g2-1432...

Canada Oil and Gas Drilling and Production Regulations now in force

Canada Oil and Gas Operations Act
SOR/2009-315 Canada Oil and Gas Drilling and Production Regulations came into force December 31, 2009; require companies to have a management system to ensure compliance with the regulations and act and are an amalgamation/modernization of the Drilling Regulations and the Production and Conservation Regulations, that exist in mirror form, under the Canada Oil and Gas Operations Act (COGOA) and the Canada- Newfoundland Atlantic Accord Implementation Act, and the Canada Nova Scotia Offshore Petroleum Resources Accord Implementation Act (Offshore Accord Acts). Part 12 of the new regulations makes consequential amendments to the Canada Oil and Gas Certificate of Fitness Regulations; the Canada Oil and Gas Installations Regulations; and repeals the Canada Oil and Gas Drilling Regulations.

Canada-Newfoundland Atlantic Accord Implementation Act
SOR/2009-316 Newfoundland Offshore Petroleum Drilling and Production Regulations
Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation Act,
SOR/2009-317 Nova Scotia Offshore Petroleum Drilling and Production Regulations,
Contact: Natural Resources Canada, Michael Hnetka, Advisor, Regulations (613) 992-2916; email: mhnetka@nrcan.gc.ca website: http://www.nrcan.gc.ca
National Energy Board Act
SOR/2009-307 Regulations Amending the National Energy Board Cost Recovery Regulation; in force January 1, 2010; amendments require that recoverable costs currently allocated to electricity exporters be allocated to owners and operators of power lines (power line companies) that transport electricity internationally and inter-provincially;
Contact: Jim Fox, NEB (403) 299-3628;email: jim.fox@neb-one.gc.ca website: http://www.neb-one.gc.ca

Technical amendments to Mackenzie Valley screening requirement regulations now in force

Mackenzie Valley Resource Management Act
SOR/2009-306 Regulations Amending the Preliminary Screening Requirement Regulations (Miscellaneous Program); in force; technical in nature; ensure that the Preliminary Screening Requirement Regulations up to date and provisions of other statutes and regulations are listed in Schedules 1 and 2.

PROPOSED REGULATIONS
Transport Canada, Marine Safety

Proposed regulations could affect offshore works

Minor Works and Waters Regulations under the Navigable Waters Protection Act; development of regulations will be based on a Minor Works and Waters Order published in May 9, 2009, Canada Gazette Part I; anticipated publication in Canada Gazette Part I Fall 2010; final approval and publication in Canada Gazette Part II early 2011. Transport Canada, Marine Safety accepting suggestions for additional regulations under act (i.e. prescribing fees payable for approval; granting/ amending approvals; establishing classes of works or navigable waters; placement, construction, maintenance, operation, safety, use, removal of works). Contact: Transport Canada, Marine Safety, Kenneth Hahn, Project Manager, Navigable Waters Regulatory Development (613) 998-6442; fax: (613) 998-0637; email: Kenneth.Hahn@tc.gc.ca Marine Safety website: http://www.tc.gc.ca/marinesafety/menu.htm May 9, 2009 gazette: http://www.gazette.gc.ca/rp-pr/p1/2009/2009-05-09/pdf/g1-1431...Navigable Waters Protection Act http://www.canlii.org/en/ca/laws/stat/rsc-1985-c-n-22/latest/...

NOTICES

Stakeholder consultations on GHG emission regulations

Consultation Draft: Passenger Automobile and Light Truck Greenhouse Gas Emission Regulations, pursuant to Canadian Environmental Protection Act, 1999; posted December 7, 2009; will limit greenhouse gas (GHG) emissions from new vehicles beginning with the 2011 model year. Comments will be accepted until January 15, 2010. The draft regulations will subsequently be published in Canada Gazette Part I for a 60 day comment period. Draft regulation: http://www.ec.gc.ca/ceparegistry/documents/regs/ghg/COM1103_D... Contact: Ed Crupi, Energy and Transportation Directorate, Environment Canada (819) 994-2230; fax: (819) 953-9547; email: GHGRegDev_Vehicles@ec.gc.ca website: http://www.ec.gc.ca

Notice re: notification of environmental occurrences

Notice with respect to the availability of environmental occurrences notification agreements, pursuant to the Canadian Environmental Protection Act, 1999 (CEPA 1999), was published in the October 24, 2009. The agreements establish procedures for the receipt and timely transfer of information between the parties concerning the notification of environmental occurrences. An environmental occurrence is defined as:

  • a release of a substance into the environment, or the likelihood thereof, in contravention of a regulation described in section 95, 169, 179 or 212, or in contravention of an order described in section 95, of CEPA, 1999;
  • an environmental emergency under section 201 of CEPA, 1999;
  • a deposit of a deleterious substance in water frequented by fish, as described in subsection 38(4) of the Fisheries Act, or the serious and imminent danger of such a deposit.

The agreements also require the parties to establish a management committee to oversee the implementation of the agreements. Access the gazette

The federal Standing Committee on Natural Resources recently posted: Combining Our Energies: Integrated Energy Systems for Canadia.... The document provides the results of a study of integrated energy systems conducted by the committee and includes recommendations.

ANNOUNCEMENTS

Canadian Securities Administrators (CanSA):

Proposed standards of disclosure

Issued December 18, 2009 for public consultation: Notice and Request for Comment – Proposed Amendments to NI 51-101 Standards of Disclosure for Oil and Gas Activities, Form 51-101F1 Statement of Reserves Data and Other Oil And Gas Information, Form 51-101F2 Report on Reserves Data by Independent Qualified Reserves Evaluator or Auditor, Form 51-101F3 Report of Management and Directors on Oil and Gas Disclosure and Companion Policy 51-101CP Standards of Disclosure for Oil and Gas Activities; comments due March 19, 2010; amendments will provide increased guidance regarding disclosure of resources other than reserves, clarify and streamline existing requirements, and respond to developments in the oil and gas industry. Document: http://www.osc.gov.on.ca/documents/en/Securities-Category5/ru...

National Energy Board:

Final arguments re: Mackenzie Gas Project scheduled for April 2010

National Energy Board announces next steps in Mackenzie Gas Project hearing. The National Energy Board (NEB) announced recently, the board’s plan for concluding the NEB’s hearing on the $16-billion Mackenzie Gas Project. The NEB plans to hear final argument in April 2010 on the applications to build the 1,220-kilometre natural gas pipeline and related facilities through Canada’s north. The April 2010 date is dependent upon the release of the Joint Review Panel report, expected in December 2009. In addition to overall recommendations of the panel, the report is expected to recommend several remedial measures (Recommended Measures). For more information contact: NEB, Sarah Kiley (403) 299-3633; email: sarah.kiley@neb-one.gc.ca Access related NEB document listing next steps/dates (3 pages).

Conference Board of Canada:

CBC issues carbon disclosure project report

Conference Board of Canada carbon disclosure project report. The Conference Board of Canada recently released, Carbon Disclosure Project Report 2009: Canada 200 On behalf of 475 investors across the globe with assets of $55 trillion. Background: each year, the annual questionnaire sent out by the global Carbon Disclosure Project (CDP) “takes the pulse” of the world’s largest companies with respect to their perceptions, strategies, and actions on climate change. Companies can make use of the disclosures as reference points to prepare for successful operations when the carbon market becomes operational.

Download the report (75 pages.)

Canada-Nova Scotia Offshore Petroleum Board (CNSOPB)
Canada-Newfoundland Labrador Offshore Petroleum Board (C-NLOPB)

Draft guidelines to complement new Canada Oil and Gas Drilling and Production Regulation

Draft guidelines to complement new Canada Oil and Gas Drilling and Production Regulation, pursuant to the Canada Oil and Gas Operations Act (published in the December 9, 2009, edition of Canada Gazette Part II; in force December 31, 2009); guidelines will be revised as necessary during the next year based on feedback and experience gained. Drilling and Production Guidelines: http://www.cnsopb.ns.ca/pdfs/Draft_Drilling_Production_Guidel... Safety Plan Guidelines: http://www.cnsopb.ns.ca/pdfs/Draft_Safety_Plan_Guidelines_20... Environmental Protection Plan Guidelines: http://www.cnsopb.ns.ca/pdfs/Draft_Environmental_Protection_G... Data Acquisition and Reporting Guidelines: http://www.cnsopb.ns.ca/pdfs/Draft_Data_Acquisition_Guideline...

C-NLOPB:

Offshore Helicopter Safety Inquiry hearings update

The Offshore Helicopter Safety Inquiry, established April 8, 2009, by the Canada-Newfoundland and Labrador Offshore Petroleum Board (C-NLOPB) began public hearings October 19, 2009. Parties with standing for Phase I of the inquiry include, in part: Suncor (Petro-Canada); Canadian Association of Petroleum Producers; Husky Oil Operations Limited; Cougar Helicopters Inc.; Sikorsky Aircraft Corporation; and Communications, Energy and Paperworkers Union, Local 2121. Access a transcript of the October 19, 2009, proceedings (31 pages). Access exhibits (pdf format, includes safety guidelines; draft certificate of fitness; draft regulations, et al). Access live stream video. Access the inquiry homepage

Canadian Environmental Assessment Agency (CEAA)
http://www.ceaa-acee.gc.ca

CEAA streamlining aboveground storage tank environmental assessments

DRAFT: The Installation, Operation, Expansion, Modification, Removal, and/or Decommissioning of Aboveground Storage Tank Systems (Petroleum or Allied Petroleum Products) Replacement Class Screening Report. CEAA is seeking public input on the appropriateness of declaring the report to streamline the environmental assessment of the designated class of recurring projects. Comments due by February 6, 2010. Document (58 pages): http://www.ceaa-acee.gc.ca/050/documents/40420/40420E.pdf Contact: CEAA (613) 957-0700; Atlantic office (902) 426-4716;

Measurement Canada (An Agency of Industry Canada)
http://www.ic.gc.ca/eic/site/mc-mc.nsf/eng/home

New technical measurement standards issued/proposed

Specification S-G-05: Specifications for In-situ Verification and Reverification of Flow Computers and Transmitters (S-G-05); issued to advise natural gas sector stakeholders S-G-05 becomes effective April 1, 2010; developed to address the electronic technologies currently being employed in gas flow computers and transmitters. S-G-05: http://www.ic.gc.ca/eic/site/mc-mc.nsf/vwapj/S-G-05-eng.pdf/$... Contact: Steve Nelson, Measurement Canada (902) 426-7981; email: steve.nelson@ic.gc.ca

Proposed standard: Electricity-Specification for the Approval of Type of 80mA and 100mA class Measuring Current Transformers; comments due February 15, 2010; of primary interest to electricity sub-metering stakeholders, electricity meter owners, and electricity meter manufacturers. Document: http://www.ic.gc.ca/eic/site/mc-mc.nsf/vwapj/Consultation_S-E... Contact: Luc Tessier, Measurement Canada (819-564-5737; email: luc.tessier@ic.gc.ca

Transitional Options for Electronic Electricity Meters Sampled under the Pilot Compliance Sampling Plan (PS-S-04). A joint working group (comprised of representatives from MC and the electricity and natural gas industries) has completed a draft of the new compliance sampling requirements which will apply to all in-service electricity and natural gas meters for the purposes of seal extension; draft will be posted for public consultation in early 2010; pilot compliance sampling program currently administered by MC under PS-S-04 will end January 1, 2011. Details: http://www.ic.gc.ca/eic/site/mc-mc.nsf/eng/lm04239.html

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Alberta government initiatives

BILLS

PROCLAMATIONS
Order in Council 630/200:

Bill 50 Electric Statutes Amendment Act, 2009, proclaimed in force December 9, 2009; amends Alberta Utilities Commission Act, Electric Utilities Act, and Hydro and Electric Energy Act; creates a critical transmission infrastructure (CTI) category; designates three transmission lines and one substation critical. Contact: Alberta Energy (780) 427-8050; website: http://www.energy.alberta.ca Related seminar: Alberta’s Environmental Law Centre is presenting a lunch seminare January 7, 2010 to discuss Bill 50 and how it affects stakeholders. Register:

REGULATIONS
The Alberta Gazette Part II: December 15, 2009
http://www.qp.alberta.ca/documents/gazette/2009/pdf/23_Dec15_...

Energy Marketing amendment regulation

Energy Marketing Amendment Regulation under the Fair Trading Act adds Part 4.1 Residential heat Sub-metering; provides it is unfair practice for a supplier to charge a tenant, based on readings taken from a heat sub-meter, for energy used to heat the tenant’s dwelling unit.

ANNOUNCEMENTS

Energy Resources Conservation Board (ERCB)

January 4, 2010 - Directive 047; swabbing fluids waste code (SWBFLD) replaced with high solids produced water (HSPWRT); better represents physical properties of waste stream; waste codes affect the reporting requirements for oilfield waste management facilities and oilfield waste generators submitting their 2009 annual oilfield waste disposition report. Announcement: http://www.ercb.ca/portal/serve...

January 11, 2010 - ERCB Investigation Report: TAQA North Ltd. Well Blowout: on June 8, 2009, a contractor for TAQA North experienced a loss of well control (blowout) while performing activities on a gas well containing 42 per cent hydrogen sulphide (H2S); findings include a lack of hazard recognition; no written site-specific procedures; inadequate orientation and information on well and downhole configuration; no TAQA supervisory personnel available. Report: http://www.ercb.ca/docs/documents/reports/IR_20100111_TAQANor...

Proposed legislative framework for in situ coal schemes. Alberta's Energy Resources Conservation Board (ERCB) recently issued Bulletin 2009-36 announcing the release of Proposed Legislative Framework for In Situ Coal Development. The proposed legislative and regulatory revisions encompass the entire development process, from exploration and construction to abandonment and reclamation and include, in part, classifying in situ coal developments as schemes and approving the developments under the Coal Conservation Act and CCR. The wells, facilities, and pipelines required for in situ coal development would be licensed under the Oil and Gas Conservation Act and OGCR and the Pipeline Act and PR. This approach is similar to the in situ oil sands regulatory model. For more information contact: ERCB (403) 297-8161; fax: (403) 297-8122; email: andrea.larson@ercb.ca <mailto:andrea.larson@ercb.ca> Access Bulletin 2009-36 (2 pages). Access the legislative framework document (13 pages).

Status Report on Enhanced Groundwater Protection Efforts Under Directive 044. (Full title: Status Report on Enhanced Groundwater Protection Efforts Under Directive 044: Requirements for the Surveillance, Sampling, and Analysis of Water Production in Oil and Gas Wells Completed Above the Base of Groundwater Protection (BGWP)). This report summarizes the results of increased ERCB surveillance of energy development activity where there is associated water production occurring above the base of groundwater protection in AB. Access Directive 044 (5 pages).

Alberta Utilities Commission (AUC)

January 20, 2010: Bulletin 2010-04: Heartland Transmission Project-Notice of Enhanced Process; under the enhanced process, interested parties can pre-register in the AUC’s proceeding and choose the extent to which they become involved (i.e. submission and oral statement; public oral hearing through preparation of evidence; appearance as a witness for cross examination). Bulletin: http://www.auc.ab.ca/news-room/bulletins/Bulletins/2010/Bulle...For more information, access backgrounder at: http://www.alberta.ca//acn/2010... Commentary:Cindy Chiasson Environmental Law Centre (Alberta) comments on process:http://environmentallawcentre.wordpress.com/2010/01/21/kudos-...

January 15, 2010 Bulletin 2010-02: Revision of Rule 020-Rules Respecting Gas Utility Pipelines; comments accepted until January 29, 2010; proposed addition includes Part 2 which sets out flaring, incinerating and venting requirements for gas utility pipelines and pipeline installations. Bulletin: http://www.auc.ab.ca/news-room/bulletins/Bulletins/2010/Bulle...

Bulletin 2010-03: Process for the Adoption of Alberta Utilities Commission Rules; revised process provided in bulletin. Bulletin: http://www.auc.ab.ca/news-room/bulletins/Bulletins/2010/Bulle...

New Directive 076: Operator Declaration Regarding Measurement and Reporting; released December 16, 2009; in effect January 4, 2010; sets out new requirements according to which operators are to declare the degree to which they have infrastructure in place to ensure compliance with ERCB measurement and reporting requirements. Directive 076: http://www.ercb.ca/docs/documents/directives/Directive076.pdf...Contact: ERCB (403) 297-8311; fax: (403) 297-7336; website: http://www.ercb.ca

AUC consulting on proposed revisions to noise control rule; phase 1: The Alberta Utilities Commission (AUC) issued November 16, 2009, Bulletin 2009-28 announcing a review of, and proposed amendments to, Rule 012 Noise Control - issued March 24, 2009. The rule is applicable to noise emitted by the construction and operation of electric facilities and gas utility pipelines. The AUC has posted online, Project Charter: Rule 012-Noise Control to explain how the review and amendment of Rule 012 (a two-phase consultation project) will be conducted. The AUC anticipates completing Phase 1 by March 2010. The Phase 2 Technical Review will be launched shortly after the release of the revised Rule in March 2010 and will involve consultation with stakeholders through a series of workshops to review and discuss technical aspects of the rule. Access a chart of the proposed administrative changes (4 pages).

Alberta Energy
http://www.energy.gov.ab.c

Adjudicator determines Alberta Energy met its duty to assist. An Adjudicator with the Office of the Information and Privacy Commissioner has determined that Alberta Energy met its duty to assist following an access to information request under the Freedom of Information and Protection of Privacy Act (FOIP). The Applicant had requested records related to the Public Body’s review of oil and gas royalty rates. The Public Body refused access to some of the information under various sections of FOIP and the Applicant requested a review of the decision. The Public Body severed two reports and 12 pages of other information, but later placed full copies of the reports in its library. Even though the Public Body did not inform the Applicant that the reports were now publicly available, Adjudicator Wade Riordan Raaflaub determined that it had met its duty to assist.

Review a copy of Order F2009-017 Access OIPC website

Government signs Letter of Intent with Swan Hills Synfuels for a carbon capture and storage (CCS) project that will turn coal into low-emissions electricity and capture carbon dioxide (CO2) for use in enhanced oil recovery. The in-situ coal gasification project will tap into a deep, unminable coalbed near Swan Hills and turn the coal into a synthetic gas (syngas) to be used to generate clean electricity. The project will also capture up to 1.3 million tonnes per year of CO2 to enhance the recovery of conventional oil in the area. Construction is expected to begin in 2011 with carbon capture scheduled to start by 2015.

Results of nuclear consultation announced; province will: maintain existing policy where power generation options are proposed by the private sector in Alberta and considered on a case-by-case basis; work with the federal government regarding nuclear power application to ensure provincial rules and environmental standards are respected; and will not invest public dollars in any nuclear power proposals. Nuclear Power website (includes links to related documents/information): http://www.energy.alberta.ca/Electricity/1577.asp Contact: Alberta Energy (780) 427-8050; website: http://www.energy.gov.ab.c

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British Columbia government initiatives

BILLS

PROCLAMATIONS

REGULATIONS
Ministry of Energy, Mines and Petroleum Resources

Regulation sets renewable and low carbon fuel requirements

December 2009: Renewable and Low Carbon Fuel Requirements Regulation; amends 2008 Renewable Fuel Requirements Regulations under the Greenhouse Gas Reduction (Renewable and Low Carbon Fuel Requirements) Act (Bill 16). to reduce the carbon intensity of transportation fuels by 10 per cent by 2020; will be phased in starting with reporting only in 2010, a modest reduction of 0.25 per cent in 2011, and increasing annual carbon intensity improvements to reach a total reduction of ten per cent in 2020. Regulation: http://www.bclaws.ca/Recon/doc... Related FAQ: http://www.empr.gov.bc.ca/RET/... Act: http://www.leg.bc.ca/38th4th/3rd_read/gov16-3.htm Contact: Ministry of Energy, Mines and Petroleum Resources (250) 952-0628; website: http://www.empr.gov.bc.ca

Regulations under Oil and Gas Activities Act targeted for April 30, 2010

British Columbia’s Bill 20 Oil and Gas Activities Act received royal assent May 29, 2008. The act introduces a contemporary legislative framework that will enable government to impose high expectations on industry as it continues to expand. The revisions also enhance the compliance and enforcement authorities of the Oil and Gas Commission (OGC) and enable the OGC to link past behaviour and compliance of a company to current and future operations. Any person who is conducting an oil and gas activity is responsible for complying with the OGAA. Any person associated with the permit holder who is directly or indirectly responsible for the contravention, including agents, contractors, and employees of the permit holder or their agents, contractors, or employees may be held liable. Due diligence, officially induced error, or mistake of fact are defences under the act. Penalties: the maximum penalty a court can impose for a contravention of the act is $1.5 million and/or imprisonment of up to three years.

Highlights of requirements in the act: the act imposes an obligation to restore the land after a pipeline has been laid. Regulations will provide detail on what steps the pipeline permit holder must take to protect the integrity of the soil layers during construction and the productivity of the soil after restoration. Companies are also required to prepare pipeline integrity management plans that include monitory and maintenance processes and procedures to ensure that pipelines remain fit for service. Pipelines that demonstrate an unacceptable risk to public safety or the environment may face forced repair, replacement, or shut down and abandonment.

Coming into force: The Oil and Gas Activities Act (OGAA) will be brought into effect when new and updated regulations supporting the new act have been completed (targeted for April 30, 2010).

Regulations under the act. The following are the principle regulations that will support the OGAA:

  • Drilling and Production Regulation (updated existing regulation);
  • Geophysical Exploration Regulation (updated existing regulation);
  • Pipeline and Facilities Regulation;
  • Oil and Gas Road Regulation;
  • Emergency Response Plan Regulation;
  • Consultation and Notification Regulation;
  • Environmental Protection and Management Regulation; and
  • Administrative Penalties Regulation..

The Ministry of Energy, Mines and Petroleum Resources will present in Spring 2010 OGAA Pre-Implementation Training to provide information on the regulations. The ministry has also posted online Oil and Gas Activities Act and Regulations: Frequently Asked Questions at: http://www.empr.gov.bc.ca/.../oilandgas/.../OGAA%20- %20Freq...The document discusses, in part: the new act and why the legislation is necessary; and how the act improves regulation and enables innovation. Contact: Ministry of Energy, Mines and Petroleum Resources, Mike Lambert (250) 356-1307; website: http://www.gov.bc.ca/empr/ Access the act.

ANNOUNCEMENTS

BC Utilities Commission (BCUC):
http://www.bcuc.com

December 2009 - Section 5 Transmission Inquiry suspended; Temporary Suspension and Revised Terms of Reference; inquiry suspended until May 31, 2010; examining long-term infrastructure for electricity transmission. Details: http://www.bcuc.com/sectionfiveinquiry.aspx

January 2010 - BC Environmental Assessment Office (BCEAO) Memorandum of Understanding (MOU) to coordinate processes; designed to promote efficient and effective regulation of public utilities; in the case of a coordinated project the BCUC and BCEAO have agreed to use the model attached as Appendix A to the MOU as the basis for the common scheduling of their processes, modified as necessary to accommodate the specific circumstances. MOU: http://www.bcuc.com/Documents/Reports/MOU-EAO-BCUC-2009.pdf

OGC announces site investigation requirements and release of site classification tool

British Columbia's Oil & Gas Commission (OGC) announced recently that it is implementing a new Upstream Oil and Gas Site Classification Tool to define the administrative threshold for sites where remediation activity must be directly overseen by the Ministry of Environment prior to the issuance of a Certificate of Restoration by the commission. A site exceeding any threshold of the tool is classified as a "priority" site. Sites designated as "priority" are considered to be "high risk" sites and require Ministry of Environment oversight until the site is classified as "not high risk" by the ministry.

The new tool (a 22-page document) lists the environmental information needed to classify sites, discusses the site classification system, and explains the associated reporting requirements. Effective October 30, 2009 operators must provide site classification reports to the commission, in accordance with section 4.1 of the site classification tool. Site classification details are to be provided in a Site Classification Report.A Certificate of Restoration will not be issued for a site unless it has been classified using the site classification tool and is not designated as a priority site, or has been classified by the director as not being high risk. For more information contact: OGC, Waste Management & Reclamation (250) 261-2059; email: Devin.Scheck@gov.bc.ca <mailto:Devin.Scheck@gov.bc.ca> Access the site classification tool (22 pages).

Ministry of Environment:

Definitions and Acronyms for Contaminated Sites consolidates in one document, acronyms and definitions relating to contaminated sites in the Environmental Management Act, Contaminated Sites Regulation, and various contaminated sites protocols and procedures.

Procedures for the Roster of Approved Professionals. New version 5 adds insurance requirements for approved professionals and expands the scope of approved professional work upon which the ministry may rely.

New Protocols under Environmental Management Act; In effect June 1, 2010; must be used when the risk classification of a site is being determined under the act.

$25 million in funding for clean energy technologies

British Columbia's Minister of Small Business, Technology and Economic Development, Iain Black, announced recently the province is providing $25 million in funding for applications to the Innovative Clean Energy Fund (ICEF). The ICEF is open to companies, municipalities, regional districts, school boards, hospitals, First Nations, not-for-profit societies, post-secondary institutions, Crown corporations, and public utilities. For more information visit the ICEF website. http://www.sted.gov.bc.ca/icefund/

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Manitoba government initiatives

BILLS

PROCLAMATIONS

REGULATIONS

ANNOUNCEMENTS

Minister of Science, Technology Energy and Mines:

Drilling incentive extended to Jan. 2014

December 2009- Manitoba Drilling Incentive Program extended for another five years to January 2014; offers incentives to encourage investment in the exploration for and development of Manitoba’s petroleum resources. Contact: Department of Science, Technology, Energy and Mines (204) 945-6577; website: http://www.gov.mb.ca/itt/petroleum

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New Brunswick government initiatives

BILLS

PROCLAMATIONS

REGULATIONS

ANNOUNCEMENTS

• No new activity in this reporting period.

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Newfoundland and Labrador government initiatives

BILLS

PROCLAMATIONS

REGULATIONS
The Newfoundland and Labrador Gazette December 24, 2009
http://www.gs.gov.nl.ca/gs/oqp/gazette/misc/wk/2009-12-24.pdf...

Canada-Newfoundland and Labrador Atlantic Accord Implementation Newfoundland and Labrador Act

Regulation 120/09: Offshore Petroleum Drilling and Production Newfoundland and Labrador Regulations, 2009; addresses management system, application for authorization and well approvals; operator’s duties; equipment and operations; well termination; training and competency.

Regulation 121/09: Offshore Certificate of Fitness Newfoundland and Labrador Regulations (Amendment); section 4 (Issuance of certificate of fitness) repealed and new content substituted; schedule repealed and new schedule substituted.

Regulation 122/09: Offshore Petroleum Installations Newfoundland and Labrador Regulations (Amendment); revisions affect manual, plans, and programs for installations.

ANNOUNCEMENTS
December 1, 2009: Minister of Natural Resources to House of Assembly

Province’s equity investment fully recouped with discovery of new oil. On November 23, Husky Energy announced the company had discovered additional oil resources in the North Amethyst field, a White Rose extension area. The current estimate of the newly-discovered resource ranges from 30 to 85 million barrels of light crude oil, with the best estimate at this point being 60 million barrels. In addition, under the terms of the agreement reached with the White Rose partners in 2007, the province will obtain enhanced royalty of 36.5 per cent on all the oil in this new licence area. House of Assembly Hansard document: http://www.assembly.nl.ca/business/hansard/ga46session2/2009-... News release: http://www.releases.gov.nl.ca/releases/2009/nr/1201n03.htm

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Northwest territories government intiatives

BILLS

PROCLAMATIONS

REGULATIONS

ANNOUNCEMENTS

• No new activity in this reporting period.

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Nova Scotia government initiatives

BILLS

NS: Pipeline Act amendments receive royal assent

Nova Scotia’s Bill No. 24 Pipeline Act, (amended) received royal assent November 5, 2009, and comes into force on proclamation. The bill, in part:

  • changes the long title of the parent Pipeline Act from An Act Respecting the Transmission of Oil and Gas to An Act Respecting the Transportation of Oil and Gas;
  • defines oil as a mixture composed mainly of pentanes and heavier hydrocarbons, that may contain sulphur compounds, is recovered or recoverable at a well from a pool and is liquid in the conditions under which its volume is measured or estimated, but does not include natural gas liquids;
  • provides new definitions for pipeline, for pipeline system, and for transportation;
  • adds new section 6A to allow that where it appears any person is not complying with the act/regulations, with the terms/conditions of any permit or licence, or with an order made under the act, the board may (a) require the person to take such action as the board considers necessary to ensure compliance; or (b) prohibit the person from carrying on any action that the board considers to be contrary to the act, regulations, permit, licence, or order; and
  • adds new section 31A to prohibit entry on any Nova Scotia lands, including lands owned by the province, for the purpose of assessing the feasibility using those lands or adjacent lands for a pipeline route, without the consent of the owner or lawful occupier of the surface of the lands.

Access Bill No. 24 Access the Pipeline Act

New act will establish Efficiency Nova Scotia Corporation, Nova Scotia’s Minister of Energy, Bill Estabrooks, recently tabled Bill No. 49 Efficiency Nova Scotia Corporation Act. The bill:
  • establishes an administrator to manage electricity demand-side management programs in NS;
  • establishes a fund that will be used to defray the costs of electricity demand-side management programs;
  • provides for regulatory oversight of the administrator, the fund, and electricity demand-side management programs; and
  • provides the administrator with the authority to engage in energy efficiency and conservation programs other than the electricity demand-side management programs.

The act will come into force on proclamation. Access Bill No. 49 For more information contact: Department of Energy

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Nunavut government intiatives

BILLS

PROCLAMATIONS

REGULATIONS

ANNOUNCEMENTS

• No new activity in this reporting period.

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Ontario government initiatives

BILLS

Bill 235 Energy Consumer Protection Act, 2009; tabled

Bill 235 Energy Consumer Protection Act, 2009; tabled December 8, 2009; Minister of Energy and Infrastructure; deals with gas marketing and retailing of electricity to consumers and applies despite any contract, agreement, or waiver to the contrary. Consumers may commence a class action or join in a class action arising out of a dispute over a contract; makes consequential amendments to the Consumer Protection Act, 2002, the Electricity Act, 1998, the Ontario Energy Board Act, 1998, and the Residential Tenancies Act, 2006. Bill: http://www.ontla.on.ca/bills/bills-files/39_Parliament/Sessi... Contact: Ministry of Energy and Infrastructure 1 (888) 668-4636; website: http://www.mei.gov.on.ca

GHG emissions trading act referred to standing committee

Ontario's Bill 185 Environmental Protection Amendment Act (Greenhouse G... was referred to the Standing Committee on General Government September 29, 2009. The bill, tabled May 27, 2009, amends the Environmental Protection Act by:

  • adding a definition for greenhouse gas; and
  • repealing section 176.1 and substituting a new section 176.1 Regulations, market-based approaches, etc. to authorize the making of regulations related to emissions trading and other economic and financial instruments and market-based approaches.

Access related information on how emissions trading (cap and trade) .... For more information, contact: Ministry of the Environment (416) 325-4000.

REGULATIONS
The Ontario Gazette

Renewable energy approvals regulation amended to facilitate development of wind power facilities

Renewable energy approvals regulation amended to facilitate development of Class 3, 4 and 5 wind facilities Amendmdents to O. Reg. 359/09 Renewable Energy Approvals under Part V.0.1 (R... were published in the October 17, 2009 edition of The Ontario Gazette. The amendments add a new subsection to exempt a person who is constructing, installling, or expanding a Class 3, 4 or 5 wind facility from the requirements described in sections 53, 54 and 55 if,

  • (a) a certificate of approval required under section 9 of the Environmental Protection Act for a wind facility was obtained on a day before the day Part V.0.1 (Renewable Energy) of the act came into force; or
  • (b) section 47.3 (Requirement for renewable energy approval) of the act does not apply to the person.

Wind facility classes are set out in the table to section 6 of O. Reg. 359/09.

Environmental Assessment Act, EBR and EPA regulations revised to facilitate fast tracking of renewable energy generation initiatives
A series of regulatory amendments under Ontario’s Environmental Assessment Act were published in the October 10 Ontario Gazette, to specify conditions under which specified renewable energy generation initiatives in the electricity (O.Reg. 116/01); waste management (O.Reg.101/07); and ‘general’ regulatory categories (Ontario Regulation 334), may be exempted from certain regulatory requirements and approvals under the Act.
Access O. Reg. 360/09 (amending O. Reg. 116/01 Electricity Projects). Access O. Reg. 361/09 (amending O. Reg. 101/07 Waste Management Projects). Access Regulation 364/09 amending Ontario Regulation 334.

ANNOUNCEMENTS

Ontario Energy Board (OEB):

January 15, 2010 - EB-2009-0152 Report of the Board: The Regulatory Treatment of Infrastructure Investment in Connection with the Rate-regulated Activities of Distributors and Transmitters in Ontario. It is anticipated that electricity distributors and transmitters will undertake significant new infrastructure investment, particularly to accommodate new renewable generation; report discusses alternative cost recovery mechanisms (i.e. accelerated cost recovery mechanisms; incentive mechanisms); applicants seeking board approval of an alternative mechanisms must satisfy the requisite relationship test. Report: http://www.oeb.gov.on.ca/OEB/_Documents/EB-2009-0152/Board_Re...

January 26, 2010 - Management Committee has delegated the following additional powers and duties of the board to employees of the OEB effective December 26, 2009: The determination of applications made under sections 36(4.1) and 36(4.2) of the Ontario Energy Board Act, 1998; any calculation or determination required under sections 4 and 5 of Ontario Regulation 442/01 Rural or Remote Electricity Rate Protection, pursuant to the act; effective 2011 the determination of applications by licensed electricity distributors made under section 78(3) of the act if, and only if, the application is an incentive regulation mechanism (IRM) application that involves no factual, legal, or policy issues of significance. Announcement: http://www.oeb.gov.on.ca/OEB/_Documents/Documents/Brd_ltr_Del...

January 27, 2010 - Amendments to the Natural Gas Reporting and Record Keeping Requirements (RRR) Rule for Gas Utilities; in force May 1, 2010; applicable for all filings due on or after May 1, 2010; Details: http://www.oeb.gov.on.ca/OEB/_Documents/EB-2009-0162/Notice_G...

December 2009 - Proposed Amendments to the Distribution System Code and Affi... Comments due on January 22, 2010.

Notice of Issuance of a New Storage and Transportation Access Rule (STAR). The rule establishes operating requirements to ensure open and non-discriminatory access to transportation services for shippers and storage companies; reporting requirements for natural gas transmitters, integrated utilities, and storage companies; and ensure customer protection within the competitive storage market.

Rate Protection and the Determination of Direct Benefits under Ontario Regulation 330/09 (EB-2009-0349); consultation process to address how the board should determine what constitutes direct benefits and the methodology for quantifying those direct benefits; discussion paper released; comments due January 11, 2009. Access discussion paper: Access related OEB letter

Environmental Bill of Rights (EBR) Registry:

Guideline for GHG emissions reporting (draft) updated. Ontario's Ministry of the Environment posted on the Environmental Registry October 14, 2009, notice that ON.30 Refinery Fuel Gas Use within a Petroleum Refinery (Appendix 23) of the draft Guideline for Greenhouse Gas Emissions Reporting has been updated. The guideline was originally posted on the registry October 7, 2009 (with the proposed Greenhouse Gas Emissions Reporting Regulation). No other changes have been introduced to the original posting. Access the revised guideline (111 pages). For more information contact: Craig Golding, Ministry of the Environment (416) 326-8688; fax: (416) 314-4128.

ANNOUNCEMENTS

Ministry of Energy and Infrastructure:
http://www.mei.gov.on.ca

New Aboriginal Energy Partnerships Program to be unveiled in first quarter of 2010

The Ontario Minister of Energy and Infrastructure announced recently that the government would be directing the Ontario Power Authority (OPA) to manage a new Aboriginal Energy Partnerships Program (AEPP) that is intended to underwrite certain “soft costs” of renewable energy projects. The AEPP would fund the preparation of Community Energy Plans, project feasibility studies, business cases, resource assessments, and environmental and technical studies. However, the details about funding arrangements, delivery partners and access to services are still being worked out, in consultation with an advisory committee of Aboriginal leaders and experts in the area of renewable energy development. According to the OPA. It is thought that the AEPP details will be unveiled during the first quarter of 2010, and updates posted on a new website being developed for the Aboriginal Renewable Energy Network. Contact: Ministry of Energy and Infrastructure 1 (888) 668-4636; website: http://www.mei.gov.on.ca (Source/Courtesy: Willms & Shier Environmental Lawyers LLP website: http://www.willmsshier.com)

Ontario Power Authority:

OPA to start offering FIT contracts beginning February 2010. Ontario Power Authority (OPA) has announced that it plans to start offering Feed-in-Tariff (FIT) contracts beginning February 2010 with Capacity Allocation Exempt projects (those 500 kW or less), and will continue through March with all of the rest of the FIT projects. As of December 1, 2009, OPA had received 1,022 FIT applications for projects over 10 kW and another 1,193 microFIT applications. Almost 80% of applications are for wind energy projects, 16% for solar and the remainder for biogas, biomass, landfill gas and water power projects. (Source/Courtesy: Willms & Shier Environmental Lawyers LLP website: http://www.willmsshier.com)

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Prince Edward Island

BILLS

PROCLAMATIONS

REGULATIONS

ANNOUNCEMENTS

No new activity in this reporting period.

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Quebec energy initiatives

BILLS

PROCLAMATIONS

REGULATIONS

ANNOUNCEMENTS

Hydro-Québec to acquire most assets of NB Power under MOU
New Brunswick and Quebec released October 29, 2009, a proposed Memorandum of Understanding (MOU) under which Hydro-Québec would acquire most of the assets of NB Power. New Brunswick would benefit from lower rates, a “vastly reduced” provincial debt exposure, plus a secure and reliable source of energy. Hydro-Québec will acquire quality assets, an additional base of more than 370,000 customers, and would benefit from New Brunswick’s strategic geographic position in the Northeast region of North America. Access related documents (zip download) at: http://www.hydroquebec.com/4d_includes/depdoc/cpe/fr/Entente_Qc-NB.zip

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Saskatchewan government initiatives

BILLS

PROCLAMATIONS

REGULATIONS

ANNOUNCEMENTS

No new activity in this reporting period.

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Yukon government initiatives

BILLS

PROCLAMATIONS

REGULATIONS

ANNOUNCEMENTS

No new activity in this reporting period.

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Standards, codes and guidelines

New CSA Propane storage and handling code: January 2010

CSA Standards will release in January 2010, B149.2-10 Propane storage and handling code. The code applies to the storage, handling, and transfer of propane; the installation of appliances, equipment, components, accessories, and containers on highway vehicles, recreational vehicles, mobile housing, outdoor food service units, and wash-mobiles when propane is used for fuel purposes; propane used as an engine fuel in other than highway vehicles; and the installation of containers and equipment to be used for propane in distribution locations and filling plants.

The code does not apply to: marine or pipeline terminals; gas where used as a feedstock in petroleum refineries or chemical plants; utility pipeline distribution and transmission pipelines; refrigerated storage or underground reservoirs for propane; propane used on boats; propane used as a propellant in aerosol containers; butane fuel cylinders of 5.3 oz (150 g) capacity or less; and the installation of appliances, equipment, components, accessories, and containers other than those on highway vehicles, recreational vehicles, mobile housing, outdoor food service units, and wash-mobiles when propane is to be used for fuel purposes. For more information contact: CSA Standards (416) 747-4044; toll-free: 1 (800) 463-6727; website: http://www.shopcsa.ca

Industry initiatives

Canadian Association of Petroleum Producers (CAPP):

Impressed Current Cathodic Protection Rectifier Design-for-Safety Guideline; prepared by CAPP’s Electrical Safety Committee, the guideline is intended to help manufacturers, operating companies, engineering consulting organizations, and cathodic protection service companies design, fabricate, market, and procure rectifiers for impressed current cathodic protection rectifiers with embedded ‘safety-by-design’ features. Guideline: http://www.capp.ca/getdoc.aspx?DocId=161052&DT=PDF

Canadian Association of Petroleum Landmen (CAPL):

January 2010 - Letter to Alberta’s Energy Resources Conservation Board (ERCB) regarding impact of ERCB Decision 2009-037 on oil and gas industry; ERCB interpretation of phrase “capable of producing the leased substances or any of them” leads to additional confusion; letter asks ERCB to refrain from further suspension and/or revocation of well licenses based upon the principles contained in the decision. Letter: http://www.landman.ca/pdf/2010/ERCB%20Decision%202009%20037.p...ERCB Decision: http://www.ercb.ca/docs/documents/decisions/2009/2009-037.pdf...

The Canadian Geothermal Energy Association (CanGEA):

January 18, 2010 - Canadian Geothermal Code for Public Reporting released; provides a minimum set of requirements for the public reporting of exploration results, geothermal resources and geothermal reserves; will provide a basis for transparency, consistency and confidence in the public reporting of geothermal information. Contact: CanGEA (403) 629-5922; website: http://www.cangea.ca

Enhance Energy to build large-capacity CO2 pipeline

The Alberta government signed a Letter of Intent, November 24, 2009, with Enhance Energy and North West Upgrading to construct a 240-km carbon dioxide (CO2) pipeline system. Construction is scheduled to begin in 2011, with operation to begin in late 2012. The province will invest $495 million in the project, over 15 years. Provincial funding for this project is part of Alberta’s $2 billion commitment to carbon capture and storage. Susan Cole, president of Enhance Energy, says this project has been in the works for many years and will initially connect the Industrial Heartland to producing oil fields near Clive. For more information, contact: Jerry Bellikka, Director of Communications, Alberta Energy 780-422-3667,jerry.bellikka@gov.ab.ca

SaskPower: new programs will double wind power production

SaskPower recently announced the launch of two new programs that will enable the corporation to more than double wind power production in the province. The Green Options Plan and the Green Options Partners Program will add another 200 megawatts (MW) of wind power to SaskPower's generation capacity. Under the Green Options Plan, SaskPower will undertake a competitive process to procure up to 175 MW of wind power from one or more independent power producers. Under the Green Options Partners Program, SaskPower will introduce a standing offer program to purchase up to 50 MW of renewable power from private sector developers, with up to 25 MW of the total coming from wind power. Additional information on the Green Options Plan and the Green Options Partners Program will be available before the end of the year. For more information contact: James Parker, SaskPower (306) 536-2886; email: jparker@saskpower.com

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International initiatives

US Environmental Protection Agency (EPA):
http://oaspub.epa.gov

Toxicological review of methanol

January 2010 - Toxicological Review of Methanol; an external peer review draft circulated for examination of technical accuracy and to determine science policy implications. Demand for methanol is growing steadily in almost all end uses. A large reason for the increase in demand is the use of methanol in the production of biodiesel - a low-sulphur, high-lubricity fuel source. Document (490 pages): http://oaspub.epa.gov/eims/eimscomm.getfile?p_download_id=494...

World Forum on Energy Regulation (WFER IV):

Energy regulators establish international confederation

During the fourth World Forum on Energy Regulation (WFER IV), held in Athens, Greece, Fall 2009, energy regulators established the International Confederation of Energy Regulators (ICER). The confederation will provide a voluntary framework for cooperation between energy regulators from around the globe to improve public and policy-maker awareness and understanding of energy regulation and its role in addressing a wide spectrum of socio-economic, environmental, and market issues. Founding members include the Canadian Association of Members of Public Utility Tribunals (CAMPUT). ICER is supported by the International Energy Regulation Network (IERN) website where information on more than 300 regulatory authorities and energy events is posted. Note: CAMPUT has launched a benchmarking study to:
  • define applications of benchmarking for regulatory purposes;
  • identify practices and benefits for comparison and regulation of electric transmission and distribution utilities; and
  • develop a framework for application of performance indicators and benchmark measures that can be used for comparison and regulation of transmission and distribution utilities. A final report is expected by the end of 2009.

For more information contact: Terry Rochefort, CAMPUT (905) 827-5139; fax: (905) 827-3260; email: rochefort@camput.org. Access the IERN.

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Legal insights

Class action lawsuit commenced on behalf of all Sunoco service station operators in ON

January 19, 2010 - Suncor announces termination of all Sunoco retailers in ON; retailers launch class action lawsuit seeking up to $200 million for breach of franchise legislation; approximately 100 retail sites will be sold in April, 2010 while the remaining sites will be re-branded under the Petro-Canada banner with different operators; all 300 current Sunoco retailers will be terminated in the process. Statement of claim: http://www.sotosllp.com/wp-content/uploads/2010/01/statement-of-claimissuedjan-1810.pdf Contact: David Sterns, Sotos LLP (416) 977-0007; website: http://www.sotosllp.com

McLennan Ross releases Cap-and-Trade Educational Presentation

McLennan Ross LLP, Legal Counsel, has released Cap-and-Trade Educational Presentation. The resource summarizes the cap-and-trade legislation that is currently before the US Senate; identifies the challenges facing Alberta and its “carbon-centric” economy; and offers advice on the initial steps Alberta companies can take now to prepare for the coming cap-and trade regulatory wave. Access the presentation here (no downloads; about 12 minutes).

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Conferences & events

Power Plant Air Pollutant Control ‘MEGA’ symposium call for abstracts issued
The US Air & Waste Management Association (AWMA) announced recently that the internationally-renowned Power Plant Air Pollutant Control “MEGA” Symposium will take place August 30 to September 2, 2010, in Baltimore, MD. A Call for Abstracts has been released; the deadline for submissions is January 11, 2010. The symposium will showcase the latest development and operational experience with air pollution controls from fossil-fired power plants in light of the evolving environmental regulatory directions and examine state-of-the-art methods for reducing hazardous air pollutant emissions. Canadian presenters at the 2008 symposium included, in part: SaskPower; Cansolv Technologies Inc.; and D. Wallschläger, Trent University. Access the Call for Abstracts (2 pages); the conference website. For more information contact: AWMA (412) 232-3444; email: info@awma.org

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Maintain compliance with regulations,
standards and guidelines: