When regulatory findings warrant a second look.
A focused, evidence-based response helped clarify a discrepancy between a regulatory notice and the reporting information available to an Alberta oil and gas operator.
The challenge
An Alberta oil and gas operator received a Notice of Noncompliance from the Alberta Energy Regulator alleging that required fugitive-emissions surveys had not been completed or reported.
The notice requested explanations, corrective measures and revisions to the operator’s Fugitive Emissions Management Program.
However, the operator’s available records showed fugitive-emissions survey information reported in Petrinex, creating a material discrepancy between the notice and the records available to the operator.
Reviewing the findings
A Notice of Noncompliance must be taken seriously. It is equally important to understand precisely what the regulator believes is deficient and whether the available information supports that conclusion.
Rather than immediately accepting every requested corrective measure, the operator reviewed the allegations individually and provided supporting information.
The response asked the AER to clarify the specific Directive 060 requirement or reporting information it considered outstanding. It also addressed the requested corrective measures in relation to the records available at the time.
There is a difference between a substantiated regulatory deficiency and a finding that has not been reconciled with the available records.
An evidence-based response
The operator maintained a clear and measured position: regulatory obligations must be met, but corrective action should be connected to an identified and supported deficiency.
This did not require an adversarial response. It required careful review of the notice, the applicable requirements and the available reporting records.
By responding to the findings directly and requesting clarification where the information did not align, the operator gave the regulator an opportunity to review the matter further.
The outcome
Following further review, the AER acknowledged a potential discrepancy in how the survey records had been identified or interpreted and confirmed that the matter was resolved.
No further corrective action was required to close the matter.
The resolution demonstrated the importance of maintaining accessible records, examining regulatory findings carefully and responding with specific, relevant information.
Why this matters
What should an operator do when a regulatory finding does not appear to align with the available records?
The appropriate response may be to clarify the facts, identify the applicable requirement and give the regulator an opportunity to review the information again.
Regulatory compliance is a fundamental responsibility of every oil and gas operator. Compliance decisions, however, should be based on an accurate understanding of the facts and the applicable requirements.
For junior operators in particular, responding to an enforcement matter can consume valuable time, money and operational resources.
Corrective measures that are not connected to a clearly identified deficiency can also create unnecessary administrative work.
The objective is not to create conflict. It is to clarify the facts, understand the applicable requirements and work toward an appropriate resolution.
The RegNav perspective
RegNav believes regulatory accountability works both ways.
Operators have a responsibility to meet their regulatory obligations. Regulators have a responsibility to accurately identify and substantiate alleged deficiencies.
RegNav helps operators review regulatory correspondence, understand the requirements involved, organize the available information and evaluate practical response options.
When the available facts do not appear to support a finding, a focused, informed and evidence-based request for clarification may be appropriate.
Does a regulatory finding warrant a closer review?
RegNav can help you review the requirements, organize the relevant information and understand the options available for responding.