Upstream Dialogue March/April 2012

ISSUE 19 I MAR/APR I 2012

RESPONSIBLE CANADIAN ENERGY

Upstream Dialogue

Dave Collyer, President of CAPP, Bill Peterson and Joy Romero, of Canadian Natural Resources Limited, and Jim Ellis, Alberta’s deputy minister of energy (l – r) with the 2012 Responsible Canadian Energy President’s Award.

Inside CAPP Events & Updates Energy in Action 2012 May 3 to May 31, 2012 Across Western Canada

our Mark y ars! calend

CAPP Investment Symposium December 10 to 12, 2012 Toronto, Ontario

CAPP is moving the 2012 Investment Symposium to Toronto.

Check CAPP’s website in the next few weeks for program details.

Federal regulatory reform plan supports responsible energy development u Federal government’s 2012 budget outlined measures to improve the federal regulatory process for natural resource projects. PAGE TWO

Industry in the news PAGE THREE Employee perspectives u Meet Bee Schadeck, senior Aboriginal advisor for Devon Canada. PAGE FIVE

Relationships behind the resource u Check out the faces from Newfoundland and Labrador Oil and Gas Week and from the Responsible Canadian Energy Awards dinner. PAGE SIX

Innovation and technology u The 2012 Responsible Canadian Award recipients are leading the way in environmental, health and safety, and social performance. PAGE EIGHT

Industry practice and regulations PAGE THIRTEEN Keeping employees informed about Canada’s oil and gas industry I www.capp.ca

New regulatory reforms will help cut red tape for large resource projects like Devon’s Jackfish Projects.

Federal budget regulatory plan supports jobs, economic growth through responsible energy development

By Dave Collyer Canada’s upstream oil and gas industry believes broad-based regulatory reform is fundamental to Canadian competitiveness – attracting and enabling investment that creates jobs, economic growth and prosperity for Canadians while ensuring environmental performance.

The federal government’s 2012 budget broadly outlined positive measures to improve the timeliness and efficiency of the federal regulatory process for natural resource projects. These measures will improve Canada’s business climate and competitiveness without compromising our commitment to responsible, sustainable development.

Our overall regulatory system must advance the “3Es” – environmental performance, economic growth, and energy security and reliability. Our high standard of environmental performance

Finance Minister Jim Flaherty speaks about Canada’s 2012 budget. (Source: CP)

The budget promised legislation “to implement system-wide improvements to achieve the goal of ‘one project, one review’ in a clearly defined time period” and focused on four priorities:

must be maintained – all Canadians expect responsible environmental outcomes – but economic growth and energy security and reliability objectives are critically important.

• Predictable, timely process with panel reviews set at 24 months.

The upstream oil and natural gas industry is the largest single private-sector investor in Canada – investing more than $50 billion each year and employing more than 500,000 Canadians.

• Reduced duplication through better coordination with the provinces.

• Focused environmental review on projects where potential impacts are greatest.

• Enhanced Aboriginal consultation through integration with project reviews and federal-provincial coordination.

All of these measures are positive steps.

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But capital can be moved quickly among the world’s potential investment markets.

And many domestic and international authorities, including the International Energy Agency and the World Economic

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Forum, have cited Canada’s overly complex, redundant and open-ended regulatory system as a threat to attracting the capital necessary to develop our abundant natural resources. This issue impacts Canada’s international competitiveness across a range of industries – not only the upstream oil and natural gas sector – and it is clear that regulatory reform is urgently required.

Cumbersome regulatory processes do not ensure responsible environmental outcomes and more regulation is not better regulation – we must move to more efficient processes, time-limited decisionmaking, and better coordination within and among levels of government.

Through the recent budget, the federal government is moving decisively to address an urgent issue of international competitiveness that impacts all Canadians.

We look forward to the federal government advancing its program of regulatory improvements. And we continue to encourage federal-provincial coordination in improving both the regulatory system and the related Aboriginal consultation process.

We are confident the outcome will be a stronger economy, more jobs and the regulatory scrutiny and environmental performance that Canadians expect.

Industry in the news

Talking natural gas Natural Gas Dialogues April 26 to June 4 Natural gas is an increasingly visible and important part of Canada’s energy mix.

This is the result of increased awareness of natural gas’ environmental and economic benefits and the new abundance of economically recoverable natural gas resulting from breakthroughs in production technology.

Canada’s natural gas industry wants to learn more about the perspectives of key influencers across the country regarding natural gas production, transportation and use. In a concerted effort to engage a broader group of stakeholders in this important discussion, CAPP, CGA and CEPA are hosting a series of Natural Gas Dialogues sessions that will begin on April 26 in Moncton, N.B. The dialogues will then take place in Halifax, N.S., on April 27; and on dates to be determined in Ottawa

and Toronto, Ont.; Quebec City, Que.; Red Deer, Alta.; and Vancouver and Fort St. John, B.C. The goal of the dialogues is to facilitate positive, respectful, interesting and mutually educative discussions, initially among all participants and more broadly among decision-makers and the Canadian public.

The dialogues series is a constructive and solutions-oriented contribution to developing a national consensus on Canada’s energy future and the role of natural gas within that future.

Mike Cleland, former president of the Canadian Gas Association and author of Seismic Shifts: Evolving the Future of Energy with Natural Gas, will facilitate the sessions, which will convene under the Chatham House Rule, which enables

a freer exchange of opinions, positions and thoughts.

Bringing together serious-minded Canadian business, environmental, sustainability, academic, Aboriginal and community leaders, these Natural Gas Dialogues are an integral part of industry’s desire to involve Canadians in a larger discussion of the economic, environmental and energy security dimensions of natural gas.

At the conclusion of the Natural Gas Dialogues, a White Paper will be issued that summarizes feedback from the dialogues forums and provide observations and recommendations that will provide a foundation for further engagement. uF or more information about the Natural Gas Dialogues contact Patricia Adams.

New faces at CAPP

Aaron Miller has joined CAPP as the new manager, natural gas strategy and advocacy.

Miller brings substantial industry experience from Enerplus, Husky and PennWest and more recent work at the Calgary Chamber of Commerce. aaron.miller@capp.ca

Geoff Morrison has joined CAPP as the new British Columbia operations manager.

Morrison previously worked with CAPP, but his most recent role was with Global Public Affairs. geoff.morrison@capp.ca

Laura Frank joins CAPP as the new natural gas communications advisor. Frank comes to CAPP from the Alberta legislature where she has served as constituency assistant for the last four years. laura.frank@capp.ca

uA ndrea Dubé is transitioning from manager of the Responsible Canadian Energy program to manager of workforce strategy.

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Greg Brady has been seconded from Devon on a part-time basis to be the manager, Aboriginal affairs. Brady is a long-time expert on this file and has strong government and Aboriginal contacts.

Brady also serves as vice-president of Aboriginal relations at Devon. greg.brady@capp.ca

Vicki Balance has joined CAPP as the new manager, Alberta regulatory affairs.

Balance joins CAPP from Deloitte, but previously worked with CAPP through Fulcrum Consulting on the Regulatory Enhancement Project. vicki.balance@capp.ca

u Brad Herald, manager of Alberta operations, has assumed responsibilities for the Saskatchewan operations, along with the health and safety file.

Industry in the news continued

News highlights

Moderator Chris Henderson, president of Lumos Energy, Dave Collyer and Larry Innes, of the International Boreal Conservation Campaign take part in the town hall discussion.

CAPP at Globe 2012 CAPP, along with members Cenovus, Encana and Suncor, attended the Globe 2012 conference in Vancouver, B.C., from March 14 to 16, 2012. The conference, which takes place every two years, brings together senior representatives from the public, private and NGO sectors involved in the business of sustainability, energy and the environment. CAPP President Dave Collyer took part in a town hall session titled Energy Infrastructure – The Environment and Economy Debate. u Read Dave Collyer’s introductory remarks here.

Eastern promises from a western boom March 3, 2012 – The Globe and Mail u Energy reporter Shawn McCarthy writes about opportunities for Eastern Canadian manufacturers in Western Canada’s petroleum fields. u Read CAPP’s fact sheet The oil sands: growing Ontario’s economy.

Unsubsidized March 23, 2012 – Vancouver Sun u Tom Huffaker, CAPP’s vice-president of policy and environment, responds to Mike De Souza’s article titled Ending fossil fuel subsidies is ‘no-brainer,’ says former Tory MP u Read Dr. Jack Mintz’s study The Myths and Facts of Fossil Fuel Subsidies: A Critique of Existing Studies, which shows the oil and gas industry does not receive subsidies.

Canada, Japan launch free-trade talks March 25, 2012 – The Globe and Mail u Prime Minister Stephen Harper announced the formal launch of free-trade discussions between Canada and Japan. u CAPP outlines its support of the free-trade talks.

The Facts on Oil Sands – There’s an app for that!

You’ve been looking for a better way to communicate facts, clear up misconceptions and emphasize benefits about Canada’s oil sands. Now, CAPP is pleased to provide our comprehensive, handy and always current smartphone app.

CAPP’s oil sands app builds on the success of the Upstream Dialogue: The Facts on Oil Sands fact book. With more than 200,000 copies in circulation, CAPP’s fact book has had considerable reach and impact. We are excited to introduce an electronic version of the book, available for free download to Apple and BlackBerry devices.

Downloading is easy. From your mobile device, simply click the links below to access the app or search “oil sands” or “CAPP” from the Apple or BlackBerry app stores. u BlackBerry: http://bit.ly/Hhk7N5 u Apple: http://bit.ly/zwsRWi

Energy in Action nominated for an Emerald Award CAPP’s Energy in Action program has been

for the Emerald Challenge Award:

small corporations,

named a finalist for a 2012 Alberta Emerald

Alberta’s Oil Sands

individuals, not-for-profit

Award. Energy in Action was nominated in the Public Education and Outreach category.

CAPP members have also been nominated for the Emerald Awards, including:

the Large Business Award.

The Emerald Awards recognize and reward the excellent environmental initiatives

• Williams Energy and Bob Mitchell (OSLI)

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• Enbridge and ConocoPhillips Canada for

undertaken each year by large and

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associations, community groups and governments. The Awards take place June 6 at the Martha Cohen Theatre in Calgary. u The full list of Emerald Award finalists

can be found here.

Employee perspectives

The value of heritage and wisdom Name:

Bee Calliou Schadeck

Title:

Senior Aboriginal Advisor

Company:

Devon Canada Corporation

Years experience: 27 years in oil and gas Location:

Calgary

The feeling of being valued for your

initiatives. I feel very

contributions can turn a good job into a

indebted to Devon

great one.

for recognizing my

No one knows that more than Bee Schadeck, senior Aboriginal advisor in the Aboriginal Relations department for Devon Canada. Schadeck works to bring

talents and allowing

education and training initiatives focused

me to do what I like doing best:

on the needs of the community.”

educating folks about Aboriginal people and our history.”

The project enabled students in grades 9 through 12 to stay home for their

understanding to Devon regarding their

During a day Schadeck goes from

education, rather than have to attend

Aboriginal relations policy and Aboriginal

advising other Aboriginal relations staff,

school in Fort McMurray, a two-and-a-

history in Canada.

educating employees and contractors

half hour drive from Conklin. In addition

about Aboriginal history, consulting

to building the school, Devon had to

with communities on Devon’s projects

work in partnership with many different

and handling contributions so Devon

organizations to make the school a

understands where they are currently

reality: the Regional Municipality of Wood

giving and to what degree.

Buffalo, Northland School Division, the

“The best part of my job is feeling valued by the people I work with,” says Schadeck.

“My Aboriginal heritage is seen as an advantage in bringing understanding, and my age is seen as bringing experience, knowledge and wisdom.”

Her latest responsibility helped Devon receive the 2012 Responsible Canadian

No two work days are the same for Schadeck, who has worked in the oil and gas industry for 27 years and in Aboriginal relations for “all of my 65 years.”

Local Conklin School Board and Sunchild E-learning.

Energy Award for Social Performance

“This has benefitted the community, the

(see page 12 for more details). Schadeck

local school board and Northland School

helped facilitate the building of a new

Division in that the high school students

high school in the community of Conklin,

“When I started in this line of work,

are getting their education at home,” says

a small, largely Metis community

there was no understanding and little

Schadeck. “Employees are also benefitting

northwest of Devon’s Jackfish project

acknowledgement for what my experience

by getting involved with the school,

in northern Alberta.

sharing their jobs and careers at Devon

could bring to a team,” says Schadeck.

“There has to be an understanding of why things are the way they are today.

That understanding creates buy-in from employees to accomplish what we are trying to do with schools and with other

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“One of Devon’s goals is to be a good neighbour,” says Schadeck. “Our Aboriginal relations policy states that we will listen to the views of the Aboriginal community, and that we will support

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with the students. The employees are giving something back to the community that is closest to our operations. We believe we are cultivating future leaders through supporting the development of a strong educated community.”

1. Captain Sidney Hynes speaks after being recognized by the Newfoundland Offshore Industries Association at the Outstanding Contribution Luncheon; 2. Volunteers collect donations for the Oil and Gas Industry Food Drive on February 25; 3. Newfoundland and Labrador Natural Resources Minister Jerome Kennedy speaks at the NOIA launch event; 4. St. John’s Mayor Dennis O’Keefe addresses the attendees at the NOIA launch event; 5. Students receive their scholarships at the launch event. Left to right are Samantha Strowbridge, Scott Fitzgerald, Tim Murphy, chair of Oil and Gas Week, Craig Adams (for son Sean Adams) and Colin Brisco; 6. 17 exhibitors took part in Energy Day on February 28, providing career information to over 600 students; 7. Georgina Bursey of Chevron talks to students as a part of Energy Day.

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Newfoundland and Labrador Oil and Gas Week 2012 – 10th anniversary Oil and Gas Week is a time of celebration, education and

Over 600 high school students participated in Energy Day, a

preparation in Newfoundland and Labrador.

career exploration event, on February 28. This year, an Energy Day

This year’s Oil and Gas Week began on February 25 with the Oil and Gas Industry Food Drive. More than 200 oil and gas industry

Plus program hosted three classes at three industry sites for a hands-on tour.

employees collected over 40,000 lbs of food and $40,000 in

On February 29 the Newfoundland Offshore Industries Association

support of the Community Food Sharing Association.

hosted its annual luncheon and presentation of the Outstanding

The official launch event was on February 27 at the College of

Contribution Award.

the North Atlantic in St. John’s. Four post-secondary students

Finally, on March 1, over 60 registrants participated in the

were recognized with scholarships and students were treated to

third annual Marine & Energy Research Briefing hosted by the

interactive displays of career exploration projects related to the oil

Geological Survey of Canada.

and gas industry.

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u Complete details can be found on the NOIA website.

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Relationships behind the resource

2012 Responsible Canadian Energy Awards On March 21, 2012, over 600 members of Canada’s upstream industry and their guests came together at the Westin Calgary to celebrate the 2012 Responsible

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Canadian Energy Awards. The event was packed with a who’s who of industry, government, industry stakeholders and CAPP member employees. Alberta Premier Alison Redford was the keynote speaker for the event.

1. CAPP President Dave Collyer with the Health and Safety Performance recipients from Shell: Glenn West, Mario Kulas, Luc Cote, Marc Vivequin, Frank Nieuwenhuijs, Mike Rezanoff, Darrell Yarusiewich, John Esteves and Keith Healy (l – r); 2. Michelle Rempel, MP for Calgary Centre-North and Parliamentary Secretary to the Minister of Environment, speaks at the awards; 3. Premier Alison Redford delivers the keynote address; 4. Mike Forgo, Dave Lye and Richard Dunn of Encana; 5. The Social Performance award recipients Samantha Konopka, Dave Collyer, CAPP President, Bee Schadeck, Marjorie Quintal-Adby, Savannah Adby, Greg Brady, Colin Kelly, Martin Sacher, Mavis Sacher, and Nelson Daychief (l – r); 6. Deborah Yedlin, Calgary Herald business columnist and the evening’s emcee, with Bob Page, a member of the RCE Advisory Group; 7. Dave Collyer with the President’s Award recipients Chris Vander Pyl, Mike Preece, Don Wilson, Bill Peterson, Jeff Irons, Gerard Iannattone and Trevor Graham (l – r) of Canadian Natural Resources Limited; 8. Premier Alison Redford and Bill Clapperton of Canadian Natural Resources Limited; 9. Fern Maas, Trina Hoffarth, Jeff Vathje and Kym Fawcett of Enerplus Corporation; 10. Recipients of the Health and Safety Performance award from Suncor: Ian Sadler, Dave Collyer, Brett Regier, Martin Mudryk, Mike Doyle and Dwight Bulloch (l – r); 11. The Chair’s Award recipients from Quicksilver: Jaime Lawrence, Jason Gouw, Karl DeMong, David Rushford and David Collyer, CAPP President; 12. Dave Collyer with the Environmental Performance recipients from Statoil: Dr. Samuel Wasser, Jonah Keim, Tim Shopik, Tom Parker and Bradley Maynes (l – r).

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2012 Innovation and technology

Responsible Canadian Energy Awards

The 2012 Responsible Canadian Energy Awards were presented

is presented to a smaller member that demonstrates exceptional

on March 21, 2012, in Calgary, Alta. The following projects were

performance in any one category or incorporates elements of

recognized as being the top projects in their areas. The President’s

all three.

Award is given to the project that demonstrates exceptional

performance in any one category (environmental, social and health

and safety) or incorporates elements of all three. The Chair’s Award

uT o learn more about Responsible Canadian Energy click here,

and to see all 29 projects nominated for the 2012 Responsible Canadian Energy Awards click here.

The 2012 Responsible Canadian Energy Award Recipients are:

Canadian Natural Resources was awarded the President’s Award for two projects: Septimus Electrification and the Horizon Oil Sands Wildlife Management System.

President’s Award

Using technology that was originally developed to deter birds from getting close to aircraft, the Wildlife Management System prevents birds from landing in the tailings pond at Horizon in three ways, says Real Doucet, Canadian Natural’s senior vice president of the Horizon Project.

First, radar-controlled Long Range Acoustic Devices (LRADs) and lasers prevent birds from landing at night and in poor visibility by emitting a deterrent sound. Second, a 28 kilometre fence was built around the perimeter of the tailings pond.

“The third preventative measure is we have removed on the edge of the pond all the habitat that was there so that we don’t motivate, if you will, the wildlife to establish nests and so on around the pond,” says Doucet.

The threefold system is working. “The success is no animals get into our tailings pond,” says Calvin Duane, Canadian Natural’s manager of environment. “Through 2010 and 2011 there has not been a single mortality on our tailings pond. And that is from our perspective pretty phenomenal that we can do that.”

The second project, Septimus Electrification, saw the installation of a high voltage transmission line to run compressor motors at the Septimus Gas Processing Plant near Taylor, B.C. “We could have used natural gas compressors, and instead we chose to connect to the grid so that we aren’t burning natural gas and therefore we are reducing greenhouse gas emissions,” says Chris Vander Pyl, Canadian Natural’s greenhouse gas advisor.

The compressors are equipped with variable frequency drives that can run at less than full speed, which further reduces energy use. “We expect to run this plant for the next 20 years, so we are looking at over 600,000 tonnes of CO2 that we will avoid in the next 20 years,” says Vander Pyl. LED lights were also installed in the yard at Septimus. They have a six-times longer lifespan and use 50 per cent less energy.

The Long Range Acoustic Device in operation at the Horizon Oil Sands tailings pond (top) and the Septimus Gas Processing Plant near Taylor, B.C.

“Part of our mission statement is for people to work together, and that’s really what happened on this project,” says Vander Pyl. u Learn more about the Canadian Natural Resources Septimus Electrification and

Horizon Oil Sands Wildlife Management projects.

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Innovation and technology continued

Chair’s Award

Operational support buildings are placed on rig matting that has been built from timber harvested during Quicksilver’s operations.

Hundreds of people in northeastern B.C. have benefited from

The company was also happy to provide the Echo Dene School

Quicksilver Resources Canada’s timber utilization initiatives, which

in Fort Liard with new equipment for its shop class as well as

include helping to restore trappers’ cabins, equipping a school’s

wood to use in the class. “Everything that I hear from the school

shop class and making rig mats for the company’s operations.

is that the program has one of the highest attendance rates of any

Quicksilver, a natural gas producer, was facing an issue with timber salvage. “The area of Horn River that we operate in, there really

program they’ve had,” says Lawrence, “and kids stay after school to complete what they’re doing.”

are no commercial forestry operations and as a result, we are

Furthermore, Quicksilver hired a local Fort Nelson sawmill to cut

typically burning all of the wood material,” says David Rushford,

some of the salvageable material into timber to make into rig

Quicksilver’s senior vice president and chief operating officer.

mats for its own operations. “We were even able to salvage the

But in talking with the local community, the company identified how to better use the salvaged timber, says Jaime Lawrence, community

sawdust from those operations to use as fill on our pipelines,” says Rushford.

and Aboriginal relations representative. “We found that there was

Rushford is proud to receive the Chair’s Award and proud of the

a need for commercially viable timber which is, believe it or not,

employees who made it happen. “They worked endless hours

hard to come by up there.” Quicksilver was pleased to reduce its

trying to establish this with both the First Nations and the local

environmental impact and help the community at the same time.

communities, and I really think the award is a culmination of all of

Acho Dene Koe First Nation, for one, wanted to use some of the wood. “They asked us if we’d be willing to hire (their) sawmill for several weeks to cut timber for a program that they had to build or repair trappers’ cabins in the area,” says Jason Gouw, Quicksilver’s manager of surface land and Aboriginal relations.

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that effort.” uL earn more about Quicksilver Resources’ timber utilization

project.

Innovation and technology continued

Environmental Performance Award Statoil is using innovative research techniques — using dogs trained to find scat (or feces) from caribou, moose and wolf — to help guide their resource management and mitigate impacts on wildlife in northern Alberta.

The scat samples give researchers information about the wildlife, including diet, DNA-based measures of population abundance and hormone-based measures of psychological, reproductive and nutritional health, as well as information about these species use of the vegetation, land form and land use.

“The location of the scat is recorded, which gives us some information,” says Tom Parker, senior environmental consultant with Statoil. “As well, the scat serves in a way as a blood sample: it gives us lots of information about animal health, the DNA or identity of individuals within the group.”

With the help of the dogs, researchers can collect up to 1,500 samples in 10 weeks.

This assists researchers and operators in understanding more about the wildlife in an effort to reduce stress on their

Mason, one of Statoil Canada’s scat dogs, sniffs out animal scat as part of their wildlife monitoring program.

manage the oil sands landscape. The

caribou, moose and wolf in the area,” says

scat program also offers an innovative

Dr. Samuel Wasser, director of the Centre

and non-intrusive method to effectively

for Conservation Ecology at the University

“We now have statistically defensible

monitor the complex interactions between

of Washington.

population numbers,” he says. “We know

humans and wildlife, which showed that

where they like to go in the winter time.

the primary negative impact on caribou

For example, moose are driven by their

herds in northeast Alberta was not

stomachs and caribou are (driven by)

predation by wolves, but rather,

predator avoidance.”

human activity.

That sort of information contributes to an

“We started this program really trying

resource developers,” says Shopik, “and I

improved knowledge base about stress

to do as comprehensive a monitoring

think we’ve reached that target.”

on wildlife populations and enables

program as possible on the impacts

researchers to suggest new ways to

of oil and gas development on the

populations, says Tim Shopik, Statoil’s manager of regulatory affairs.

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The team behind the program is pleased to have been recognized with the Environmental Performance Award. “We’re doing it to better the overall knowledge base to help us make better decisions as

uL earn more about Statoil Canada’s

scat dog program.

Innovation and technology continued

Health & Safety Performance Award

The Scotford Tri-Partite Safety

date,” says Darrell Yarusiewich, site manager

Leadership Initiative draws upon the

for Jacobs Industrial Services at Scotford.

experiences and expertise of everyone

He’s noticed a shift in attitude about safety

working at the site—whether they’re

and a breaking down of the barriers, where

Shell employees, contractors or building

people feel more comfortable approaching

trades—to develop a strong safety culture.

leadership at the site.

They meet as a group and collectively

“Safety has to be something that becomes

develop actions aimed at creating the

part of you,” says Yarusiewich. “It can’t

ideal safety culture, one that can achieve

be something that you turn on and off

Shell’s Goal Zero safety objective.

at the gate when you come to work in

“The overarching philosophy is we are convinced that in order to get to zero injuries, and that everybody goes home safely, we need to collaborate,” says Hans

Workers discuss safety at Shell’s Scotford facility.

and Safety Performance Award. “This

in 2011.

collaboration to help improve workplace safety at the site.

with this and what the results have been to

which means more people are getting hurt.” with measuring success by “how little

indicators sorted out properly, that will be

they fail,” says Martin Mudryk, Suncor’s

reflected in reduced lagging indicators.”

environmental health and safety manager for in-situ resources. “I think if we focus on what makes us successful from a leading metrics side, the lagging metrics, they’re going to look after themselves.”

leading indicator metric called Leadership

That’s exactly what’s happening, says

Safety Contacts Ratio (LSC ) was added

Regier. “Our team has been so successful

the following year. LSC® measures the

in the last few years, our lagging indicator

number of times your leadership

numbers have been coming down.”

®

Rather than use the usual measure

personnel makes a direct contact with

of safety success, the frequency of

the front line workers.

PAGE ELEVEN SEND US YOUR FEEDBACK

lagging indicator is going to start increasing,

logistics (DCL). “If we can get the leading

in relation to hours worked. Another

indicators through their Leading by Metrics

quickly within a month or two after, your

Safety professionals have struggled

to account for proactive safety efforts,

indicator) Suncor has added leading

Tri-Partite Safety Leadership initiative.

for in situ drilling, completions and

the Leading Indicator Safety Index (LISI)

what has already happened (a lagging

u Learn more about Shell’s Scotford

so we’re doing less leading indicators —very

In 2009, Suncor’s DCL started using

recordable incidents, which measures

doing,” says Boerstra,” and it’s always

injury rates.

Brett Regier, general manager at Suncor

of looking at safety.

new and innovative that we’ve been

to drop down —

include leading indicator stuff,” explains

Suncor Energy has developed a new way

because it’s a recognition for something

program and are seeing success in lower “We’ve broadened our stewardship to

Leading metrics initiatives have lowered the number of injuries at Suncor.

award means a tremendous amount to us,

good to get that recognition.”

“I’m excited about where we’re headed

Health & Safety Performance Award

to, but because it’s part of who they are.”

safety, heavy oil.

incidents at Fort Saskatchewan the site

have come together in a non-traditional

do the right thing not because they have Shell is delighted to have won the Health

to the overall reduction of recordable

who work at Shell’s Scotford facility

influencing culture and getting people to

Boerstra, Shell’s manager of operational The tri-partite initiative has contributed

Staff, contractors and building trades

the morning. We really worked hard at

“People come up to me and say, ‘Where was this 30 years ago when I started in

“Now, we capture those (leading) numbers,

this industry? This would have really helped

how many of those we’re doing and adjust it

me,’” says Mudryk. “To me, that’s success.”

for the man hours that we use and we come up with a figure,” says Regier. “If that seems

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u Learn more about Suncor’s Learning by

Metrics program.

Innovation and technology continued

Social Performance Award

The school at Conklin that Devon helped to establish.

Devon’s Jackfish projects are just southeast of Conklin, Alta., a tiny

(that delivers an innovative online teaching model), the Conklin

community of a few hundred people in northeastern Alberta. As the

school board and the community leadership – and Devon

company started developing its steam assisted gravity drainage

provided the financial, human resources and direct support to

(SAGD) projects, it started to learn a lot more about Conklin.

establish a high school in the community.

“We spent a considerable amount of effort getting to know the

To get the school in place in time for the first semester of the

community, what the community challenges were, what the

school year, “we found that a prefabricated school would be the

community interests were,” says Greg Brady, Devon’s vice-

way to go,” says Brady. “We did a bunch of research on who had

president of Aboriginal relations. The company discovered Conklin

available buildings and structures, and got our permits and moved

didn’t have a high school and students had to get on a bus every

it up there and installed it as fast as we could.”

week to attend high school in Fort McMurray.

The first 11 students started at the new school in September

“I can’t imagine sending my child two-and-a-half-hours away and

2010. Most of them are still pursuing their high school diplomas.

I don’t see them until the weekend,” says Bee Schadeck, Devon’s

“This for me enforces that we stand by our values, that we knew

senior Aboriginal advisor. “Once we found out that Conklin didn’t

the school was the right thing to do and we did it,” says Schadeck.

have a high school, that when their children were past Grade 9 (they) had to go to Fort McMurray to get a further education, Devon stepped up to the plate.”

Performance Award. “It’s still really an important part and role of an industry to give back to communities, so we appreciate the

The company brought together community partners — the Northlands School Division, the Sunchild E-Learning Program

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Brady says Devon is very proud of receiving the Social

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recognition. But it certainly doesn’t mean we’re stopping here.” uL earn more about Devon’s Conklin High School project.

Industry practice and regulations

Feds propose national caribou recovery strategy The federal government is proposing new recovery strategies for woodland caribou.

As part of the strategy process, the government requested input on their draft plan from the provinces and territories, Aboriginal communities, industry, environmental non-governmental organizations and other stakeholders. The government is now incorporating all of the input and will release a final recovery strategy late in the spring of 2012.

CAPP has made the following recommendations on the strategy: • It should emphasize recovering a national caribou population and acknowledge that recovering some local populations is not feasible.

• It should enable a full suite of management actions, A woodland caribou grazes in British Columbia. Source: CP

acknowledging that predator and/or primary prey management will be required for some local caribou populations, at least in the short-term.

Caribou Implementation Plan, which will implement population management, habitat management and research on effective

• It should redefine “critical habitat” and “destruction” to

mitigation. Industry started paying a levy at the end of January—up

accommodate overall ecological condition and commit

to $2 million a year — to fund caribou research, such as caribou

to habitat research and revised mapping within five years.

calving habitat and the effects of industry activity. Funding of

• That recovery is undertaken within the context of balanced policy so that the public interests of Canadians are served

research work will begin in the spring. uR ead more about the Recovery Strategy for the Woodland

with due consideration of the socio-economic impacts of

Caribou, Boreal population (Rangifer tarandus caribou)

recovery actions.

in Canada [Proposed].

In British Columbia, the oil and gas industry has taken steps

u L earn more about the B.C. Caribou Implementation Plan.

to work with the provincial government on their Boreal

PRIME changes launched The Saskatchewan Ministry of Energy and Resources has introduced a new oil and gas business process and systems renewal project in response to increasing activity, and to keep pace with changing technology and business requirements.

The Process Renewal and Infrastructure Management Enhancements (PRIME) project will renew and modernize the oil and gas business processes and computer systems.

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The initiative includes: • Changes to volumetric, infrastructure, valuation and royalty reporting, • A new oil and gas royalty and tax billing system, • Changes to well, pipeline and flowline infrastructure reporting, • Reservoir management enhancements; and

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• Changes to tenure and subsurface management systems and processes.

Saskatchewan’s joining of the Petroleum Registry of Alberta is the first component of the broader PRIME project and was implemented in April 2012. Other benefits of the project include self-service information entry and access, more accurate and timely information, and reduced turnarounds.

Industry practice and regulations (continued)

New tool to strengthen skills of well-site supervisors A small group of companies has started

the Drilling Safety Focus Group, CAPP,

measure skills and provide the supervisors

testing a new interactive online tool

PennWest Exploration, ConocoPhillips

with feedback to help them improve and

designed to help well-site supervisors

and the Canadian Association of Oilwell

grow as leaders in the industry.

further develop their skills.

Drilling Contractors.

The tool, tentatively called The Borehole,

The new program lets any well-site

source assessment tool will be widely

provides well-site supervisors with

supervisor create an online profile that

available by the fall of 2012 for use during

feedback that identifies their strengths

producers can review to assess the

the 2012-2013 drilling season.

and opportunities for improvement. It was

supervisor’s qualifications, knowledge and

developed by Enform in collaboration with

experience. The online tool is meant to

It is anticipated the free-to-use, open-

The British Columbia government has established new requirements for pipeline construction operations

New requirements for B.C.’s Damage Prevention Program There are thousands of miles of high voltage lines, high –

reducing the frequency of preventable damage to the assets of

pressure oil and gas pipelines, water, sewer and telecom lines

petroleum and natural gas industry permit holders, under section

underground in British Columbia.

7 of the Pipeline and Liquefied Natural Gas Facility Regulation,

If the ground is disturbed in any way, whether building roads

which falls under B.C.’s Oil and Gas Activities Act.

or installing power poles, a Damage Prevention Program (DPP)

The B.C. government has developed a self-assessment protocol

is required. The B.C. Oil and Gas Commission recently released

to help operators ensure their DPP conforms to the DPP

new recommended practices to help operators make sure they

guidelines. All permit holders are required to use the tool to

are in compliance.

complete and file an initial self-assessment before 2016.

A pipeline permit holder must have a fully developed and

uG et more information about the Damage Prevention

implemented DPP, which provides a systematic approach for

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Program Guidelines.

An instructor in a survival suit escapes underwater from the window of the helicopter underwater training simulator while being watched by another instructor at the Marine Institute’s Offshore Safety and Survival Centre.

Source: The Telegram

Industry practice and regulations (continued)

Improving training competency through simulation The Marine Institute’s Offshore Safety &

enhancing the experience and training

Wells recommended that, “Training

Survival Centre (MI-OSSC) has installed

for workers preparing for possible marine

should be done with greater fidelity, which

a new helicopter underwater egress

emergencies.

objective is already being pursued. Fidelity

trainer that closely resembles the fuselage of the helicopters being flown offshore Newfoundland.

Students will use the training system to practise emergency surface evacuation drills, underwater escape techniques and

should encompass survival training in more realistic sea conditions than is currently the case.”

This new training equipment ensures

use of emergency breathing systems/

In addition to the enhanced and improved

that offshore workers will experience

spare air devices.

training that can now be delivered,

more thorough training and will increase the confidence of individuals in an emergency situation. The MI-OSSC pool now also has the capability to simulate weather conditions, such as waves, wind, rain, thunder and lighting,

This new technology also brings the training offered at MI-OSSC in line with a recommendation made by commissioner Robert Wells out of the Offshore

technology enhances the facilities to conduct research in safety and survival techniques for the marine environment.

Helicopter Safety Inquiry. Commissioner

Canadian Association of Petroleum Producers (CAPP) The Canadian Association of Petroleum Producers (CAPP) represents companies, large and small, that explore for, develop and produce natural gas and crude oil throughout Canada. CAPP’s member companies produce more than 90 per cent of Canada’s natural gas and crude oil. CAPP’s associate members provide a wide range of services that support the upstream crude oil and natural gas industry. Together CAPP’s members and associate members are an important part of a national industry with revenues of about $100 billion-a-year.

If you would like to receive this newsletter directly from CAPP, email your request to upstreamdialogue@capp.ca.

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MI-OSSC has said that the improved

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