New Rules Set for Underground Gas Storage

The Nova Scotia government has established new rules for the underground storage of hydrocarbons, such as natural gas. The Underground Hydrocarbons Storage Regulations and Code of Practice will provide guidelines for the location, construction, operation and closure of underground storage reservoirs in Nova Scotia.

Underground storage is key to ensuring that companies providing energy have access to stored gas to meet their energy needs. Keeping gas stored for periods of heavy demand or delays in production increases the reliability of the supply to customers. Currently, there are no underground storage reservoirs in Nova Scotia, although they are common in areas such as New York and Ontario where there are large natural gas markets.

"These new rules for underground storage are important as our oil and gas industry continues to grow," said Energy Minister Gordon Balser. "We're providing clear guidelines that will enable energy producers to provide their customers with a consistent supply of energy, while ensuring the interests and safety of Nova Scotians are protected."

Many underground storage spaces are located in salt reservoirs. The properties of salt allow for a reliable and secure storage area that is easy to access.

The regulations and Code of Practice provide comprehensive technical, safety and reporting requirements for the underground storage of hydrocarbons in Nova Scotia. They will be administered by the Department of Energy and the Nova Scotia Utility and Review Board. The department will issue rights to locate and develop storage reservoirs, while the board will administer the actual design, construction, operation and closure of the reservoirs and facilities.

Consultations on the new regulations and Code of Practice took place in September. Comment was also received from stakeholders and the public through the Department of Energy Web site.

The Underground Hydrocarbon Storage Act and Regulations came into effect on Dec. 6. A copy of the regulations and Code of Practice can be obtained at www.gov.ns.ca/energy .