An emission cap and methane regulations drafted by the federal government would be detrimental to Saskatchewan’s economy, according to a report done by the Saskatchewan Economic Impact Assessment Tribunal.

The federal oil and gas emissions cap aims to limit greenhouse gas emissions to 35-38 percent below 2019 emission levels, and the methane cap would aim for at least a 75 percent reduction of oil and gas methane emissions below 2012 levels, both by 2030. Provincial Justice Minister Bronwyn Eyre says these plans unfairly target the prairie provinces and are also unconstitutional.

“The Federal Government also cannot do any of this constitutionally. Oil production and methane regulations fall exclusively within provincial jurisdiction over natural resources under Section 92A of the Constitution.”

According to the report, with these two mandates, by 2050 there will be up to $7 billion in royalty in tax revenue losses, $43 billion in lost government revenues, and up to 34,000 job losses. Eyre says these mandates could be brought forward any day.

Eyre adds that by cutting the legs off of Saskatchewan’s oil and gas companies, “you enable backfilling by other jurisdictions which are far less well-regulated, far less clean, and you target your own country and benefit others.”

When it comes to methane, the Minister claims Saskatchewan has already reduced methane emissions from upstream oil facilities by more than 60 per cent between 2019 and 2022.

“Why would you possibly pile on and kill the sector more, when you want them to invest in things going forward?”

Eyre says there are several legal paths the province could take to combat the regulations, which could include a partnership with Alberta.

“There’s the possibility of another reference case, there’s the possibility of judicial review of these policies,” she explained. “If we are to challenge these harmful economic policies, constitutionally or otherwise, we have to have evidence. This arms us with evidence.”