Jimmcmahon,
Im sure it is being done, and im sure you can do a ton of testing to make sure its all up to code, but the fact still remains that jsut because you can do it does not mean you should.
Its basically a colossal waste of money, you can get gaskets (albiet expensive ones) that will let you mate the two flanges, or you can change the connecting flanges on the pipe side, both options should be much cheaper than modifying the valves to meet the pipe flanges, and then testing those valves extensively to ensure they still work.
Plus the big question is what happens later on down the road if something goes wrong with that valve, if the ERCB asks why that valve blew out or started leaking like a paper bag well thats going to be a rougher conversation when yuo are talking about modifications to the valve, as opposed to just using the correct mating flanges on the pipeline.
And just for the record, it is ok to use RF on 1500#, i know alot of specs call for RTJ, but ive worked with clients that use RF, and it has worked out fine. you might need a deviation from the specs witht he client, but once you explain the situation to them im sure they will agree.