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The Petroleum Sector Stream Approach

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Mandatory Section 71 Survey Notices

#1

The following Notice, issued on March 8, 2008, under section 71 of the Canadian Environmental Protection Act, 1999 (CEPA 1999), entitled: Notice with respect to certain high priority petroleum substances, applies to 145 of the approximately 160 substances (data is already available for the others) in the petroleum sector stream identified under the Chemicals Management Plan.

#2

The following Notice, issued on July 25, 2009, under section 71 of the Canadian Environmental Protection Act, 1999 (CEPA 1999), entitled: Notice with respect to potentially industry-limited high priority petroleum substances, applies to 52 of the approximately 160 substances in the petroleum sector stream identified under the Chemicals Management Plan.

Background

On December 8, 2006 the Government of Canada announced the Chemicals Management Plan. The Plan includes a number of proactive measures to make sure that chemical substances are managed properly and acts to safeguard human health and the environment of Canadians.

A key element of the Chemicals Management Plan is the "Challenge", which covers approximately 200 substances. This initiative requires manufacturers, importers and industrial users of high-priority substances to provide Environment Canada and Health Canada with information on batches of 15 to 30 substances every three months. There will be a total of 12 batches released over a period of three years. The information that is received, along with that gathered from other sources, will be assessed and used to decide, if necessary, the appropriate actions required to protect the health of Canadians and the environment.

Another key element of the Chemicals Management Plan is the "Petroleum Sector Stream Approach" which includes approximately 160 petroleum substances that are considered high priority, but were set aside from the Challenge to be addressed under a sectoral approach. They were set aside from the Challenge because of the following considerations:

  • the group consists of a large number of substances;
  • the substances are primarily related to the petroleum sector; and
  • they are complex mixtures.

It is expected that a large portion of the petroleum substances are limited to petroleum sector facility sites, meaning that they are:

  • used for blending into finished marketed products;
  • confined within an oil & gas facility; or
  • consumed as fuels or as feedstocks within a petroleum sector facility.

These substances are expected to be addressed within the same timeframe as the Challenge substances.

Petroleum Sector Stream Approach

Environment Canada and Health Canada have developed a plan that includes data collection, assessment of the substances, and development of risk management instruments, if required. The following schematic outlines these activities.

Flow Chart

Data Collection

Information was gathered on high priority petroleum substances so that informed decisions could be made and any potential risks that may be associated with these chemicals would be appropriately managed. Upon examination of information on their production and uses, the high priority petroleum substances were further divided into five categories (or "streams"):

  • 0- substances concluded not to be relevant to the petroleum sector and/or not in commerce;
  • 1- site-restricted substances, which are substances that are not expected to be transported off refinery, upgrader or natural gas processing facility sites;
  • 2- industry-restricted substances, which are substances that may leave a petroleum-sector facility and be transported to other industrial facilities (for example, for use as a feedstock, fuel or blending component), but that do not reach the public market in the form originally acquired;
  • 3- substances that are primarily used by industries and consumers as fuels;
  • 4- substances that may be present in products available to the consumer.

This exercise also identified companies that manufacture or acquire each substance, and obtained quantity ranges for these activities, using the mandatory information gathering provisions of section 71 of the Canadian Environmental Protection Act, 1999 (CEPA 1999), in a tiered approach.

Most of the high priority petroleum substances are likely used or manufactured during petroleum refining or bitumen / heavy crude oil upgrading activities. The two Notices issued under section 71 of CEPA 1999 published to date apply to any person who, during the 2006 calendar year, owned or operated:

  • a petroleum refining facility;
  • an upgrading facility; or
  • a facility that is engaged in both petroleum refining and upgrading.

For those parts of the petroleum sector not subject to the Notices, research and voluntary submissions were used to collect this type of information and any other information required.

Screening Assessment and Risk Management

Because this approach is specific to the petroleum sector, efficiencies for screening assessments and risk management can be made. Synergies with other initiatives may also be identified.

Data obtained through the section 71 survey Notices and all other collected data will be compiled and analyzed in order to determine:

  • substances that are no longer in commerce and may be recommended for application of the "Significant New Activity" (SNAc) provisions;
  • substances that are similar and can be addressed with a group-based approach; or
  • substances for which a more focused approach is required.

The results will be used to direct the path forward for the Petroleum Sector Stream Approach. Screening assessments will be completed and risk management instruments will be developed as needed.

If you have questions or comments, please contact us. Indicate on the envelope or subject line "CMP Petroleum Stream Inquiry".