B.C. Oil and Gas 2013

Resource development opportunities rich for First Nations communities B.C.’s natural gas sector experiencing a time of unprecedented investment, growth, and job creation

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B.C. Oil & Gas Report 2013

British Columbia

Oil & Gas Report

2013

President David Langstaff

Contents 8 Message from the B.C. Premier, the Honourable Christy Clark

68 Emerging energy sector to enhance growth of Prince George economy

10 Message from the Minister of Natural Gas Development, Rich Coleman

70 Make your move to Tumbler Ridge

12 Message from the Minister of Aboriginal Relations and Reconciliation, John Rustad

72 Education program builds energy awareness among students and teachers: Society of Petroleum Engineers

14 B.C. key to market access for oil and natural gas: CAPP

74 Product enhancements in OGLs lead to increased protection for hoist gears

18 LNG – Potential for dynamic impact on B.C. economic growth

76 Supporting LNG development: NOV Wilson Business Development Group

20 A potential game changer: Nexen pursues a top-tier shale gas play in Northeastern B.C.

78 New “TILT” desanders deliver improved efficiency

22 A northern gateway partnership: Enbridge

80 Gas Field Innovators brings life to tired oil and gas wells

24 Apache/Chevron Kitimat upstream: Direct link to Horn River and Liard Basin 26 BC Jobs Plan building the foundation for prosperity 28 Horn River Basin strategically aligned for LNG: A Q&A with Dave Rushford, chair of the HRBPG

82 GPEC – supplying today’s environment for tomorrow 84 Prince George company expanding into the Peace area: The Alliance Group of Companies

32 Human resources for B.C.’s resource economy

86 Performance under pressure: Caliber Oilfield and Production Services Inc.

36 ‘Wanted’ - Businesses to serve emerging communities of Prince Rupert and Port Edward, B.C.

88 A dream becoming a reality: Swift Specialty Services Ltd.

38 Are the capital risks too high to invest in B.C.’s LNG industry?

40 The energy pathway: KTIDS Northwest 42 A decade of safety improvement on the rigs 44 Encana receives top honours for responsible Canadian energy development 46 BC Oil and Gas Commission launches innovative water tool 48 Serving the profession and the professional: the Society of Petroleum Engineers 50 British Columbians want answers from pipeline industry

90 Like their structures, family-owned Calhoun Super Structure continues to grow and expand 92 Western Canada’s oil + gas communications experts: TOG Systems 94 Modular construction a key solution in overcoming project issues

64 Regional development in the Northern Rockies: Laying the groundwork for success 66 In the hub with Mayor Lori Ackerman of Fort St. John 6

B.C. Oil & Gas Report • 2013

Production services provided by S.G. Bennett Marketing Services www.sgbennett.com art Director Kathy Cable Layout & Design Dana Jensen Advertising art Caitlyn Haier Joel Gunter

© 2013 DEL Communications Inc.

100 Under pressure, under control: Peregrine Pressure Testing Ltd. 101 A team that works: Edge Electric & Controls

106 The right fire truck for the job: Smokey Series Fire Trucks

62 Fort St. John set to host the 2013 BC Energy Conference

Sales Manager Dayna Oulion

Account Representatives Jennifer Hebert Gladwyn Nickel Mic Paterson Anthony Romeo Colin James Trakalo

98 Worksite solutions crafted from houseboat beginnings: TA Structures

54 The unconventional renaissance: CSUR

60 Have you considered an alternative safety approach?

Managing Editor Shayna Wiwierski shayna@delcommunications.com

Cover photo provided by Nexen.

102 The calling: Alpha Safety Ltd.

58 Changes to Enform’s COR program creates efficiency for energy industry employers

Associate Publisher Jason Stefanik

96 TerraPro: tradition and innovation

52 STEP Energy Services’ acquisition of Kamber Nitrogen Services expands benefits to operators in the Fort St. John region 56 The voice of the service sector in B.C.: Energy Services BC

is published by: DEL Communications Inc. Suite 300, 6 Roslyn Road Winnipeg, Manitoba Canada R3L 0G5

104 Spray-applied polyurethane liners replace traditional lining systems in Northern B.C.

108 Giving back to the community: Rosenau Transport Ltd. 110 Never lost – save time and funds with the right navigation system 112 Making the earth move for over 50 years 114 One call does it all: Radar Road Transport Ltd. 116 Breathe Right 121 Relax with unparalleled service at Northern B.C.’s Wonowon Lodge 122 Index to advertisers

All rights reserved. Contents may not be reproduced­by any means, in whole or in part, without the prior written permission of the publisher.

While every effort has been made to ensure the accuracy­of the information contained herein and the reliability of the source, the publisher­in no way guarantees nor warrants­ the infor­ma­tion­and is not responsible­for errors, omissions or statements­made by advertisers. Opinions and recommendations made by contributors or advertisers are not necessarily those of the publisher, its directors, officers or employees.

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Printed in Canada | 09/2013

INVEST IN

TUMBLER RIDGE Northeastern BC’s most desirable community

The perfect place...

A place for people. A place for business. A place for you to grow.

Impressive Opportunities

Emerging industries

• Residential & commercial development needed for growing population.

• Demand for multi-family and age-friendly housing.

• Land available for estate lots.

• Burgeoning wind power industry under development.

• Tourism operators wanted to provide outdoor experiences in the Shangri-La of the Northern Rockies.

• Bioenergy – utilizing timber infected by the Mountain Pine beetle.

• Community Forestry – recently approved application is providing the community with its own forest with an annual allowable cut of 20,000m3.

Economic Drivers • 2 operating mines under expansion, 2 others undergoing project development.

• Recent natural gas activity applications approved include 127 wells, 72 pipeline projects, and 5 geophysical programs.

For a copy of our Economic Outlook Summary, Community Profile, or any other info please contact: Community Development Office T: 250.242.4242 | cdo@dtr.ca | www.investTumblerRidge.ca

B R I T I S H

C O L U M B I A

C A N A D A

TUMBLER RIDGE

Lasting Impressions

Message from the B.C. Premier

The Honourable Christy Clark

Creating a legacy F

or years, British Columbia has been a premier location for oil and gas development. Some of the world’s most promising resource areas are found here. Looking forward, the coming boom in liquefied natural gas – or LNG – demand is on the verge of creating unprecedented opportunities.

The advantages we provide are clear: geographical proximity to Asia; a supportive regulatory and fiscal framework; a long history of safe and responsible development; and positive business partnerships with First Nations and local communities.

Simply put, B.C. is the place for industry to invest and conduct business. Over the last year, large industry players with global LNG experience have come forward and announced their intentions to build an export facility in our province.

B.C.’s momentum has attracted international attention, including the first international LNG Conference in Canada

this past February. Over 500 people attended the two-day event – appropriately called “Fuelling the Future” – to discuss B.C.’s LNG prospects. First Nations leaders, representatives from 25 B.C. communities, federal and provincial government officials, academics, and 192 companies from eight countries participated.

LNG is a unique, historical opportunity for British Columbia – a lasting legacy that will create jobs, revenues and prosperity. It is expected to create on average 39,000 jobs during a nine-year construction period, and once operations begin, there will be as many as 75,000 full-time jobs in regions and sectors across the province. Additionally, the growth and development expected is poised to trigger approximately $1 trillion in cumulative GDP within British Columbia over the next 30 years.

That’s why we’re taking action now to make sure British Columbians see the benefits made possible by this once-in-a-

lifetime opportunity. Besides being able to make further investments in areas like education and healthcare, we will create a BC Prosperity Fund, enshrine it in law, and dedicate revenues to eliminating the provincial debt.

Those are the stakes, and we can’t afford to waste time on needless delays.

None of this would even be possible without a vibrant oil and gas sector and the dedication of industry, First Nations, local communities, and government agencies.

Please visit our website at www.gov. bc.ca to learn more about government’s commitment to grow and diversify B.C.’s oil and gas sector. S

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Message from Minister of natural gas development Rich Coleman

I

nfrastructure capital, job creation and economic growth – these are the benefits of a vibrant natural gas

unprecedented opportunities for British Columbians.

B.C.’s potential in this global industry

and oil sector.

was expedited with the release of our

For years, British Columbia has been a

natural gas strategy in 2012. The goal is

premier location for natural gas and oil

to diversify the sector, increase our com-

development. Some of the world’s most

petitiveness, and attract investment. We

promising resource areas are found here.

need to facilitate growth as quickly as

Modernized technology pioneered in

possible to secure B.C.’s position as a lo-

our province has reshaped exploration

cation of choice for tomorrow’s natural

practices around the world. Most recent-

gas export industry.

ly, the province has become the setting

The advantages we provide to this

of a bold new energy future where lique-

global industry are clear: a geographical

fied natural gas – or LNG – will create

proximity to Asia; a supportive regula-

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10 B.C. Oil & Gas Report • 2013

tory and fiscal framework; a long history of safe and responsible natural resource development; a stable geo-political jurisdiction; and positive business partnerships with First Nations and local communities.

Simply put, B.C. is the place for proponents to invest and conduct business; where new infrastructure and economic opportunities are supported.

The world is taking notice. One year after releasing our strategy and plans

for LNG, B.C. is positioned as a future supplier of clean natural gas for Asia and new markets.

Large industry players with global LNG experience have come forward and announced their intentions to build an export facility. The momentum has been so significant that it led to the first international LNG conference in Canada this past February. Over 500 people attended the two-day Fuelling the Future event to discuss B.C.’s LNG prospects. First Nations leaders, representatives from 25 B.C. communities,

federal and provincial government officials, academics, and 192 companies spanning eight countries participated.

LNG is a unique, historical opportunity for British Columbia – a lasting legacy that will create jobs, revenues and new prosperity. Recently, I was appointed the Minister responsible for the new Ministry of Natural Gas Development by British Columbia’s Premier, Christy Clark. The creation of this ministry, as well as a dedicated Cabinet Working Group on Liquefied Natural Gas, demonstrates how sincere our

commitment is, and how real the opportunity has become.

We owe this opportunity to a vibrant oil and gas sector, and to the dedication of industry, First Nations, local communities, and government agencies that are making it possible. The benefits are substantial. The opportunities of tomorrow are taking shape today.

Please visit our new ministry website at http://www.gov.bc.ca/mngd/ to learn more about the government’s commitment to grow and diversify B.C.’s natural gas and oil sector. S

B.C. Oil & Gas Report • 2013

11

Message from Minister of ABORIGINAL RELATIONS AND RECONCILIATION John Rustad

P

other British Columbians is to ensure that First Nations are in the best possible position to take advantage of resource development opportunities in their communities. Opportunities in major new natural gas pipelines and development of a liquefied natural gas (LNG) export industry for British Columbia can create the jobs, income and other economic benefits for First Nations that can help build a robust economy.

Aboriginal people can play an important role in development of a LNG

artnerships are at the heart of B.C.’s relationships with First Nations. With some 200 First Nations calling B.C. home, the provincial government has made building relationships with First Nations communities a priority. Underscoring these commitments is the knowledge that government must work in partnership with aboriginal people to identify shared goals and outcomes.

The way forward to close the socioeconomic gap between First Nations and

industry. First Nations are working with the B.C. government and industry on LNG plants proposed for in Kitimat and Prince Rupert areas, as well as on new major natural gas pipelines from northern British Columbia that will provide the gas feedstock for liquefaction.

B.C. is also working with Treaty 8 First Nations to ensure that they benefit from natural gas extraction and other developments in their territory.

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In February, the provincial government announced $32 million for the First Nations Limited Partnership to facilitate a non-equity investment in the Pacific Trail Pipelines Project which will connect to Kitimat LNG. The partnership is comprised of 15 First Nations along the route of the pipeline and will generate significant revenues for each of the First Nations.

As well, my ministry has signed several agreements with the Haisla Nation and with the Federal Government that will allow for provincial regulation of an LNG plant on reserve land. Additionally, the Haisla are part of the ownership group, BC LNG, which proposes to develop a floating LNG export project in Douglas Channel. Having these types of agreements in place provides increased certainty on the land and, thus, increases confidence among business investors as well.

The work to date done by the Pacific Trail Pipelines Aboriginal Skills Employment Partnership (PTP ASEP) is an example of where First Nations, government, and industry can come together to address the training needs of aboriginal communities in combination with the workforce requirements of industry.

By working closely with First Nations and industry, we are creating jobs and long-term economic development for many communities.

Government is encouraging the LNG sector to work with First Nations as it develops and plans their projects, to include First Nations in environmental work required to support those projects through regulatory processes, and to also consider business and commercial arrangements with First Nations. Make no mistake, engaging early and often with First Nations makes good business

sense. It saves companies money and creates increased predictability and certainty for everyone.

By exporting natural gas to Asia, B.C. has a once-in-a-lifetime opportunity and we want to make sure First Nations have the opportunity to participate in, and benefit from, the economic bene­ fits this new industry will bring to all of British Columbia. I am committed to continuing the dialogue between our government, First Nations, and the business community to ensure industry understands its obligations and responsibilities to First Nations.

It’s critical that we secure the benefits that will arise from the development of the liquefied natural gas sector. My role as minister will be to ensure First Nations are participating and benefitting. S

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B.C. Oil & Gas Report • 2013

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B.C. key to market access for oil and natural gas

By Geoff Morrison, manager of B.C. Operations, Canadian Association of Petroleum Producers

A

s Canada’s window to the Pacific, British Columbia’s role in expanding and diversifying markets for Canada’s oil and natural gas resources cannot be overstated.

Responsibly producing and trading our abundant natural resources creates jobs, generates taxes and royalties, contributes to stronger, more prosperous communities, and benefits the country economically as a whole.

At present, the United States is Canada’s only customer for oil and natural gas exports. Natural gas exports to the U.S. declined 16 per cent over the past five years and are projected to drop further as abundant and affordable supply makes the U.S. increasingly self-sufficient. Likewise, U.S. demand for oil is flat, a trend expected to continue in the medium term, while Canadian production is poised to double over the next two decades.

In Asia, meanwhile, demand for oil and natural gas is growing at a rapid pace.

The International Energy Agency estimates world energy demand will increase 14 B.C. Oil & Gas Report • 2013

35 per cent by 2035, driven in large part by expanding economies such as China and India. From a supply perspective, Canada’s oil and natural gas assets represent a significant wealth opportunity for all Canadians, provided we remain competitive and develop the infrastructure necessary to connect to these markets.

British Columbia’s proximity to Asia and its tidewater access make it key to supplying Asian markets.

Planning and regulatory work continues on proposed B.C.-based pipeline projects, such as Enbridge’s Northern Gateway, Kinder Morgan’s expansion and many proposals to liquefy natural gas and ship it to world markets.

We recognize the public’s concerns related to crude oil pipelines and marine transportation proposals in B.C. are genuine and substantial. We believe these concerns can be resolved to the public’s satisfaction through continued responsible resource development, implementation of world-class operating practices and leading spill prevention and response capabilities.

Canadians expect the oil and natural gas industry and governments to ensure environmental risks are mitigated while realizing the jobs and economic growth.

We agree and are committed to doing so, contributing to the high standards of living we have come to expect and enjoy due to our abundance of natural resources, and the planning, investment and innovation of previous generations of Canadians.

For example, oil sands development is expected to generate $117 billion in economic activity in Canadian provinces outside of Alberta over the next 25 years.

About $28 billion will be generated in B.C. alone, according to the Canadian Energy Research Institute. Transportation infrastructure, including pipelines, is critical to ensure these benefits are realized.

In addition to the work underway on oil projects, diversifying natural gas markets through exports of liquefied natural gas (LNG) is critically important to the Canadian natural gas industry.

Abundant supplies have seen North American natural gas prices drop to the

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lowest level in a decade. Due to transportation costs and competing U.S. supplies, western Canadian natural gas is now less competitive in its traditional U.S. and eastern Canadian markets.

To adapt to this new market reality, ensure an outlet for production growth and capture a share of the growing global LNG markets, the natural gas industry is focused on building LNG terminals on the West Coast and exporting the product to Asia, where demand is growing and prices are currently much higher than in North America.

Australia and the United States are only two of Canada’s international competitors for offshore natural gas markets.

And both are ahead of Canada in terms of established LNG infrastructure development and commercial relationships with consuming nations.

Canada can be a competitive supplier to offshore natural gas markets. To do so, however, we must have a collective sense of urgency and shared commitment to compete in these global markets.

B.C.’s royalty regime, which governs the producing part of the natural gas industry, is competitive with other jurisdictions and generates significant resource revenue for the province. That same type

of competitiveness must extend to the fiscal framework LNG exporters need to attract the substantial investment capital that will be required to open new markets for a resource that otherwise may be stranded in the oversupplied North American market.

If LNG projects do not move forward, reduced market access will ultimately result in reduced investment activity and jeopardize the economic benefits of natural gas development.

A calculation based on a 2012 report by the Canadian Energy Research Institute shows the proposed LNG facilities on the West Coast could generate about $150 billion in taxes and $500 billion in

GDP growth across Canada over the next 25 years.

In summary, Canada’s oil and natural gas industry is positioned to continue to create significant value for all Canadians as global energy demand increases. To achieve these benefits, however, we must remain competitive, we must maintain the confidence of the public that we are acting responsibly, and we must align within Canada to compete effectively on the global stage.

It’s an opportunity for today’s generation to act as those before us and to seize the opportunity to not only sustain, but but also improve the quality of life for all Canadians. S

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LNG – Potential for dynamic impact on B.C. economic growth

By Leonard Melman

I

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t is no exaggeration to declare that the economic future of the province of British Columbia may be more dependent on developments within the world of natural gas than any other single factor.

British Columbia has already identified enormous reserves of the colourless, odourless gas; several billion dollars are currently being expended in developing and expanding those reserves, and tens of thousands of workers are presently employed within the industry.

However, a new and dynamic side to the natural gas equation has recently entered the picture in a big way, namely the conversion of natural gas from its normal gaseous state into liquefied natural gas (LNG) for trans-shipment to distant markets, particularly those in Asia where energy requirements are huge, while alternative means of supply are inadequate at best and nearing crisis levels at worst.

This conversion is necessary, as there is simply no viable method of shipping huge quantities of natural gas other than in a liquefied state. In order to accomplish the conversion into LNG, plants known as “LNG trains” must be constructed. The process involves purification of the gas and then cooling to a temperature of -161 degrees Celsius. LNG is then loaded on special vessels for shipment and, upon arrival at the final destination, the LNG is regasified. Throughout the process, safety is a vital concern as natural gas in all its forms is exceedingly flammable.

One of the most important economic factors is the dynamic difference between pricing of natural gas in North America versus Asia. In Canada and the U.S.A., where supplies are abundant and growing dynamically, commodity pricing for natural gas hovers near $4 per million British Thermal Units (BTUs), but in

Asia, where domestic supplies are minimal and demand is excessive, the price hovers near quadruple that amount.

Therefore, this price differential suggests an opportunity to make enormous profits – including substantial tax revenues for governments – by building a pipeline from B.C. natural gas fields to Prince Rupert and establishing LNG conversion facilities and advanced harbour capabilities in that community.

Speculation is abundant regarding the continuation of this vast pricing differential. On the one hand, Asian demand for energy continues to grow rapidly and it appears alternatives to natural gas such as nuclear power, conventional petroleum fuels, and even renewable energy sources all encounter serious environmental or supply problems. However, on the supply side, numerous new LNG terminals are being proposed in several nations which could mitigate the supply/demand bal-

ance in favour of adequate or even excess supply down the road, thereby reducing price pressures.

Thanks to its location directly on the Pacific Coast and its relative proximity to B.C.’s natural gas fields, Prince Rupert has indeed become the focus of attention when it comes to British Columbia’s LNG development. Two companies have already received regulatory approval to proceed with LNG plans and several other applications appear to be in the works.

In 2011, Kitimat LNG was granted a licence to export LNG from B.C., with Asia as the primary commercial target. In granting the licence, Canada`s National Energy Board noted, “...The board recognizes that forecast demand growth for LNG in the Asia pacific region provides a new opportunity for Canadian producers to diversify their export markets...”

Next, LNG Canada, a venture between Shell Canada Ltd. and three Asian part-

ners, submitted a plan for environmental review to build both a LNG terminal at Kitimat and a natural gas pipeline from northeastern B.C. to the terminal facilities. In the proposal, the company noted, “Project construction is expected to start in 2015...with construction of the first phase to be completed in 2019/20. The life of the project is expected to be at least 25 years.”

The stakes for B.C. could be staggering.

Premier Christy Clark recently declared that should LNG expansion take place as projected, the province could be able to create a “prosperity fund” of sufficient size to entirely eliminate both the province’s governmental debt and its provincial sales tax as well. Both commercial activities and job creation associated with both construction and operations could be enormous as well.

With stakes that vast placed upon the LNG table, developments within the industry bear the closest attention. S

TERRACE/KITIMAT

B.C. Oil & Gas Report • 2013

19

A potential game changer Nexen pursues a top-tier shale gas play in Northeastern B.C.

A

dvancements in technology have enabled the cost-effective recovery of shale gas — a potentially game-changing resource for the world’s energy supply. Shale gas, which is found in abundance throughout many continents, is an affordable, clean-burning fuel.

For Calgary-based Nexen Inc., an upstream oil and gas company that develops energy resources in some of the world’s most significant basins, shale gas is one of three strategic businesses; the others are conventional oil and gas and oil sands. Nexen recognized the potential of shale gas early, and in 2006 began acquiring large blocks of high-quality acreage in the Horn River Basin of Northeastern British Columbia — one of the most prospective shale gas fields in North America. In 2010, Nexen purchased more land in the nearby Cordova 20 B.C. Oil & Gas Report • 2013

and Liard basins, bringing the company’s total land position to approximately 300,000 gross acres.

Third-party evaluators have estimated that Nexen’s Horn River and Cordova lands hold between four trillion and 15 trillion cubic feet of recoverable contingent resources, while its Liard lands contain an estimated five to 23 trillion cubic feet of prospective resources.

“Shale gas complements Nexen’s oilweighted portfolio, and we believe it can be a significant source of growth in the future,” says Ron Bailey, Nexen’s senior vice-president, Natural Gas (Canada) Operational Services & Technology. “In an environment of relatively low natural gas prices, shale gas must compete for capital with other opportunities.

For now, we are prudently pursuing our Horn River drilling program, while focusing on cost-reduction, superior execution, environmental stewardship, and

research of alternate markets to maximize the value of the resource.”

Nexen continues to achieve industryleading results in the Horn River Basin, where the company completed a ninewell pad in 2011. In 2012, Nexen developed an 18-well pad in the Horn River Basin and set a new industry record, completing 6.3 fracs per day, beating the previous industry record of four fracs per day. Currently, Nexen is drilling 20 horizontal wells from a single pad in the Horn River Basin. Production capacity from Nexen’s Dilly Creek facility is about 175 million cubic feet per day.

“The Horn River Basin is a top-tier shale play and Nexen is at the heart of it,” observes Bailey. “We have a very large resource base and a strong team that has extensive experience from working in other shale gas basins.”

The calibre of Nexen’s resource base and operating expertise were under-

scored by the joint venture agreement announced in 2011 to a consortium led

by INPEX Corporation of Japan. Under this agreement, INPEX and its partner, JGC, acquired a combined 40 per cent working interest in Nexen’s shale gas holdings in Northeast British Columbia.

Nexen remains the operator.

Nexen believes liquefied natural gas (LNG) exports could be an attractive option for maximizing the value of its shale gas resource in the future. The partnership with INPEX and JGC brought with it significant LNG expertise and market access. INPEX’s assets include large LNG projects around the globe, and the company is currently building a regasification terminal in Japan. Nexen, INPEX, and JGC are jointly investigating the feasibility of a potential downstream project, including exporting LNG. Nexen is making impressive strides in demonstrating the cost-effectiveness of shale gas drilling. At Horn River, the company has reduced its cost per stimulated metre by about 60 per cent since 2009. But Bailey says Nexen recognizes it’s not enough to make shale gas production cost-effective — it must also be done safely, reliably, and with minimal impact on the environment.

“Technology has enabled the responsible development of shale gas,” says Bailey, “but concerns about its impact on the environment have been raised, especially on how production impacts water.

We’re responding to those concerns on several fronts and we’re committed to keeping local residents informed on our progress.”

Nexen complies with rigorous B.C. water protection measures. For example, to reduce the risk of water contamination, regulations require significant setbacks for water sources, such as lakes, rivers, and aquifiers. Nexen’s shale gas wells have steel casing and cement barriers in place to provide protective, impermeable barriers between gas production,

flowback water, and water sources. Nexen

new technology that could enable it to

also minimizes the risk of surface spills

use saline water as an alternative to fresh

of wastewater by injecting it deep under-

water in shale gas production.

ground where it can be safely stored.

“We plan to be a responsible energy

Nexen conducts comprehensive water

developer in Northeastern B.C. for many

availability and water-quality monitor-

years to come,” observes Bailey. “We want

ing near its Dilly Creek operations and

to make sure we get it right from the start

shares that data with regulators. The

when it comes to safely and responsibly

company is also advancing testing of

unlocking this resource base.” S

B.C. Oil & Gas Report • 2013

21

A Northern Gateway partnership

I

t’s known as the Northern Gateway project. But, for more than a decade and counting, Enbridge has viewed this as the Northern Gateway partnership.

Northern Gateway is a proposed $6.5-billion energy infrastructure project that would link Canada’s oil sands with emerging Pacific Rim energy markets. At the same time, Northern Gateway represents the evolution of Enbridge’s community-centred partnership approach with the company’s aboriginal associates.

“All along, we’ve seen the aboriginal community as a fundamentally important partner in Northern Gateway,” says Michele Perret, Northern Gateway’s senior manager of community and municipal relations. “Northern Gateway is truly a nation-building exercise, but it would also be impossible to achieve without a strong relationship built on respect, trust, and sincerity.”

Throughout the project’s planning and consultation phases, Northern Gateway’s aboriginal partners have always rated longterm environmental considerations above the sizeable economic benefits that the project offers. “In other words, they’re not willing to sacrifice tomorrow for today where the environment is concerned,” says Perret. “We’ve listened. And we’ve responded with extra environmental and safety measures.”

Northern Gateway used detailed Aboriginal Traditional Knowledge (ATK) studies, directed by various aboriginal groups, to help determine the pipeline’s design and route. Aboriginal representatives have been invited along on strategic watercourse assessment and reconnaissance fieldwork, and their input and knowledge have helped in the selection of crossing locations.

Northern Gateway is committed to world-class programs in the area of marine transportation safety and marine emergency preparedness and response, with coastal First Nations involvement in both.

To date, Northern Gateway has held more than 2,000 meetings and 43 open houses with aboriginal groups regarding the project, in addition to 400-plus community presentations, 36 openhouses with the public, 16 rounds of community advisory board meetings, and a dozen “community technical meetings” that have

provided specific information about pipeline integrity and safety.

Northern Gateway has also offered up funding to allow aboriginal groups to participate fully in the engagement process.

Throughout this ongoing dialogue, Northern Gateway acted on community concerns, using public input to alter the proposed project route some two-dozen times in various locations.

Northern Gateway also announced a $500-million package of enhancements – in the areas of monitoring and analysis, in-line inspection surveys, and pipeline-wall thickness – to make a safe project even safer.

From the start, Northern Gateway’s right-of-way aboriginal communities have been recognized as project partners. An equity ownership offer for aboriginal pipeline right-of-way communities is worth an estimated $300 million. And that represents just a portion of Northern Gateway’s estimated $1-billion total aboriginal benefits package – which also includes $100 million in employment income, $300 million in business opportunities, and a $100-million community investment fund, a portion of which would be dedicated to aboriginal right-of-way communities.

Northern Gateway’s aboriginal skills development and employment training strategy – funded by the company’s $3-million aboriginal education and training fund – has an “employment-right-now” approach. Northern Gateway is working directly with 14 aboriginal communities, helping to develop skilled tradespeople in heavy equipment operation, pipefitting, ironworking, welding, and surveying. Northern Gateway is also communicating with local colleges in B.C. and Alberta to make sure they’re aware of impending labour needs in the energy pipeline and construction sectors, and looking for ways to link aboriginal graduates to work in those fields.

Northern Gateway represents a potential world-class energy infrastructure project, with state-of-the-art technology. But it can’t be done alone. Enbridge promised full inclusion for its aboriginal partners – and will continue to live up to that promise. S

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Apache/Chevron Kitimat upstream: Direct link to Horn River and Liard Basin A Q&A with Rob Spitzer, executive VP of development for Apache/Chevron Kitimat Upstream project

By Kathy Smith

R

ob Spitzer is executive vice-president of development for the Apache/Chevron Kitimat Up-

Are you drilling vertical or horizontal wells?

RS: A good number of them will be verticals and they are mainly in the northern

stream project. In his new role, Spitzer’s

Liard area, where there’s no infrastruc-

focus involves assets in Northeast B.C.,

ture to produce them. They’re basically

specifically the Horn River Basin and the

vertical wells that are aimed at holding

Liard Basin. During his former position as

the land, and there are 10 or possibly 11

vice-president of exploration for Apache

horizontal wells over the next number of

Canada, Spitzer was involved in natural

years. They will be horizontal wells, but

gas exploration across the country and in-

they’re also drilled for tenure primarily

ternationally. Spitzer was also chair of the

to learn more about drilling them and

Horn River Basin Producers Group since

production. They’re fulfilling a number

its inception, and only recently handed

of different needs: tenure, technical infor-

over the reins for that when he accepted

mation, production information, and so

his new role with Apache/Chevron.

Mr. Spitzer, how many wells is ApacheChevron drilling in the Liard basin, and for what purpose, i.e. exploration or production?

Rob Spitzer (RS): Apache and Chevron have the 50/50 partnership that was announced in late December 2012, and we have three wells we’re drilling for sure in 2013 in the Liard – it could be up to five.

We have one tenure well in the Horn, so that’s basically the plan for 2013. Beyond that, there are wells we’ll have to drill for

on.

What is the difference you see between the Horn River formation and the Liard formation?

RS: Not terribly much, but the biggest difference is depth and pressure. Cordova is the shallowest of the basins, then you get into the Horn, which is deeper, and Liard is the deepest of the three. That presents slightly different drilling challenges for each area. Ultimately, the formations are relatively similar with shales

Courtesy of Apache Canada Ltd.

Speaking as a member of the Horn River Basin Producers Group, how is the membership doing today?

RS: The bulk of the work being done today in that area is still Horn River related. There are still more wells being drilled at Horn than probably the other two places combined, so the group still represents the most significant activity.

The producers group is relevant in the sense that it does a lot of planning together, and communicates and passes along information to the community, so at the end of the day it still has relevance – it may not be the same level of activity as it was in 2009, but it’s still the most significant of the three basins.

that are gas-charged. Drilling differences

tenure again in 2014. We posted licences

are fairly dramatic because of depth, and

a few years ago and those licences need a

costs are proportional to depth. Of all

well to retain the land … because we like

the shale gas in far Northeastern B.C., the

the area, we’re drilling the wells to make

Horn River Basin is where it started, so

sure that we validate the land … some of

therefore it’s the most mature in terms of

these wells will become productive, and

the number of wells drilled historically.

some are drilled solely for the purpose of

After Horn, people poked around in Cor-

keeping the land.

dova and then the Liard.

24 B.C. Oil & Gas Report • 2013

Rob Spitzer, the executive vice-president of development for the Apache/Chevron Kitimat Upstream project.

What can you say about activity increasing once again in the area?

RS: When I used to chair the producers group, we talked very openly about the fact that prices go up and down, and as they do, technology changes, so there’s going to be some ups and downs. Right now, because gas prices are relatively low

and there’s no LNG heading for Asia yet, there is a bit of a lull. But that doesn’t mean it can’t pick up. I view it as just part of the business cycle and the lifecycle of the field. At the end of the day, would it surprise me if it went up a little bit? No. Would it surprise me if LNG contracts were signed and companies needed gas out of Horn? No. Either one of those two would cause a lot more activity.

that goal, but there’s lots [of work still] to do.

RS: Coming from a geographic standpoint, it’s been that way historically.

It’s a great thing for the Northern Rock-

The new IDCA (Infrastructure Development Contribution Agreement) passed for Fort Nelson, and the referendum passed to access provincial monies for infrastructure. Do you see this as a positive in terms of Fort Nelson being the primary service centre for the Horn River Basin?

ies Regional Municipality, and how it’s spent is up to them … what they’ve accomplished by attracting that money and having the province provide it is a good thing for the oil and gas industry and the residents of B.C. S

How will initial gas supply to LNG plants work?

RS: I think it’s going to be companyspecific. From Apache/Chevron’s standpoint, we’re looking at Horn obviously and Liard because we’ve got a large amount of acreage there and a lot of gas.

We’re also looking at the grid gas, so it’s likely going to be some kind of combination, and economics determines the combination. In other words, what is the grid gas going to sell for, relative to what you think you can produce the gas for in the Horn or Liard – if you are buying from the grid (gas already in the system), you don’t necessarily know where the gas is coming from. If you are looking at LNG which is still years out, you’re looking at what the price of gas is going to be when you need it, which isn’t necessarily linked to today’s price. You make an assumption on what that price is going to be and compare that with what you think your costs will be to drill, complete, and tie in those wells. The jury is still out on how those two will interplay.

In looking forward at positive investment decisions for LNG, what is most encouraging?

RS: The two key ingredients for LNG are supply and demand. From a supply standpoint, B.C. is blessed with a lot of gas, including Northeast B.C., so that’s a good thing. The other part is what’s the demand for gas? There’s a big demand for it, so now it’s just a matter of filling in the blanks and that’s not a trivial exercise.

It’s got to make economic sense, environmental sense, and so on. I’m optimistic obviously because we’re working toward B.C. Oil & Gas Report • 2013

25

BC Jobs Plan building the foundation for prosperity

By Rich Coleman, Minister of Natural Gas Development

B

ritish Columbia’s natural gas sector is experiencing a time of unprecedented investment, growth and job creation. The reason: liquefied natural gas, also known as LNG. The Government of British Columbia’s aspirations for LNG came to the forefront with the release of the BC Jobs Plan in 2011, where we made a pledge to pursue the export potential of our province’s vast supply of natural gas.

With access to Asian markets, LNG will strengthen the economics of B.C.’s natural gas sector and facilitate new employment opportunities for British Columbians.

Construction of multiple LNG projects is expected to create thousands of jobs over the next decade – this includes field preparation work, trade services, heavyequipment operators and engineering positions, to name just a few.

Once in operation, each LNG facility will have permanent positions to be filled. They will require highly skilled and technically qualified employees to successfully manage and operate this new industry for B.C. Based on the development of five projects, our analysis indicates over 75,000 long-term jobs will be created once LNG plants are fully operational, with the

construction phase creating thousands of additional jobs.

Employment opportunities will occur all over the province. Of the permanent jobs created, 2,400 of them will operate and maintain LNG plants and a staggering 61,700 positions will support the industry – the people who will be involved in exploration, production, processing and transportation. New jobs will be created in other sectors, as workers and local businesses thrive from the economic stimulus created from LNG activities.

Obviously the demands on our labour force are increasing quickly and people will need training to fill job openings.

Our government is taking action to ensure British Columbians are first-in-line for the jobs being created.

A BC Natural Gas Workforce Strategy Committee was formed in March 2012 to evaluate and address labour supply-anddemand needs. In July 2013, a strategy and action plan was released, initiating the crucial first step to ensure training requirements are addressed in a timely manner.

Our work is far from over. Actions are now being taken by various parties – government, industry and key stakeholders – to implement our plan in a timely manner so the natural gas sector can

continue to grow and British Columbians are ready for the opportunities of the future.

With technology improving, new resources still being discovered, and projections increasing, B.C. estimates that expanded growth, including LNG exports, in the natural gas sector could be supported for 80 years or longer. This is why our work to prepare British Columbians for the jobs ahead is so essential.

Together with industry and key stakeholders, we are championing a prosperous future full of economic opportunities. We will be a leader for LNG production and export. British Columbians – with the skills to make it all work – will benefit for generations to come.

To learn more about the BC Jobs Plan, please visit http://www.bcjobsplan.ca/.

To view the BC Natural Gas Workforce Strategy and Action Plan, visit www. rtobc.com/Resources/Reports.htm. S

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Horn River Basin strategically aligned for LNG Q&A with Dave Rushford, Chair of the Horn River Basin Producers Group

By Kathy Smith

D

avid Rushford is the new chair of the Horn River Basin Producers Group (HRBPG), succeeding Rob Spitzer in the role. Rushford is also senior vice-president and chief operating officer for Quicksilver Resources Canada Inc. In a recent interview, Rushford expressed a high level of confidence that once investment decisions are reached for LNG facilities, activity will increase in the Horn River Basin.

Mr. Rushford, what prompted you to become chair of the Horn River Basin Producers Group, representing one of the world’s most desirable shale gas plays?

Dave Rushford (DR): I’ve been involved with the Horn River Producers Group for a couple of years, and Rob Spitzer before me has been doing an excellent job of that for a number of years. Of all the producers, Quicksilver probably has the largest interest in Horn River relative to our overall portfolio, so it’s very important to us. I felt that from a Quicksilver perspective, and knowing the area quite well, I’d be a good choice, and I was elected as chair.

Activity is down in the Horn River Basin for now. Are you confident that once investment decisions are reached for LNG facilities, activity will increase in the area?

DR: Certainly all of the members are encouraging that these facilities get permitted and built because we absolutely need to have another outlet for gas sales 28 B.C. Oil & Gas Report • 2013

in North America. I think I can speak for all the producers that we’re all working diligently to get economics to a level that we can support activity in the Horn River Basin. I think British Columbia and the federal government have a major role in terms of getting pipelines permitted, LNG plants built on the coast, and a fiscal structure that works for the Horn River. It’s economically challenged right now, but I think that can be fixed. It’s really hard to ignore the size of the resource – the Horn River, Cordova, and Liard combined – there really isn’t anywhere in the world with that level and accumulation of gas in one place outside of the Middle East.

While capital is very mobile and it can go anywhere in the world, what makes the shale gas in Northeast B.C. so desirable?

DR: The first thing they’re going to look at is the geology, and that’s what sets Northeastern B.C.’s assets apart – it really is blessed with world-class geology. The second thing companies are looking for is certainty in regulatory processes. Canada has a very modern, very complex, very thorough regulatory process. Countries from all over the world come to study our processes. The negative is that ours take a considerable amount of time to go through, and the positive is that they’re done professionally, at arm’s length from government, and we have the certainty of law within the processes. The third is the fiscal framework we work under – we

David Rushford, Chair of the Horn River Basin Producer’s Group. don’t know yet what the framework for LNG is going to be, so that’s job number one following the provincial election that just happened. All factions of the provincial government that industry has been working with are extremely supportive of developing LNG in B.C., and the same can be said federally – I think everybody understands the value proposition to the citizens of the province for developing the LNG business – it really can be one of the major economic supporters for the entire country.

Though low gas prices are supposed to be self-correcting, it all takes time. How do you weigh in on gas prices and the surplus of gas in the system?

DR: The amount of supply from large shale plays, such as the Marcellus, Haynesville, Barnett, Horn River, and Montney, have added a tremendous amount of gas into the system, as well as secondary gas coming off the U.S. shale oil plays (associated gases produced from the oil). This has resulted in a supply surge and not enough demand.

You’re seeing some of the gas price recovery now, and we’ve had an almost 100 per cent surge in gas prices since last year, although it’s still too low for the Horn River to see a massive increase in drilling activity – but it’s finally starting to go in the right direction. Storage numbers in the U.S. and Canada are back into a normal five-year average. Our storage last year was absolutely full – there was

nowhere to put any more gas at the end

North America where we have this mas-

tax – there are a number of things.

of the injection season, so we’re finally

sive resource that can be developed, so

Assuming we have successful negotia-

coming back into the normal patterns

we just need to develop markets for it.

tions, and the projects have final in-

and we’re starting to see a bit of gas price recovery.

vestment decisions in a few years’ time, While awaiting approvals for projects like

you’ll start to see a ramp up of drilling.

building pipelines across mountains and

There’s not enough gas developed in

Obtaining investment decisions can be

constructing LNG plants, how is the me-

Western Canada right now to fill all of

slow-going. In the interim, what evidence

ticulous regulatory and permitting work

these LNG facilities, so it will spur an

do you see of continued support for LNG

going?

amazing amount of drilling in all of the

and related projects in B.C.?

DR: When you look at the process

basins, including the Horn River.

DR: All the major recent studies show

the world over on large investments,

great support for LNG exports. We’ve

there’s a number of steps you have to go

So you can say with confidence that the

got more gas than we can possibly use

through, like financing, regulatory per-

members of the HRBPG will likely keep

and if you look at it from a future re-

mitting, public consultation, and once

their irons in the fire in this area?

serves perspective, we’ve had reserves in

you get through all those, you’ve got a

DR: I think they’ll stay for the long

place in North America equal to seven

higher level of confidence that the proj-

haul because when you look around

or eight years’ worth of supply, which

ect is economically viable, and will get

the world at shale plays, the Horn River

has been typical over the last 20 years.

regulatory approvals. Then the boards

is probably one of the best resources in

Now we have resources in place that are

of companies will review that for their

the world. Depending on which report

excess of 100 years’ worth of supply. We

final investment decisions. It’s contin-

you read, there’s 100 to 150 TCF of re-

can drill up several times that again.

gent on the economics of the projects,

coverable gas there, so it will get devel-

We’ve got this wonderful situation in

government fiscal policy, and carbon

oped with time – it’s really just a func-

Fort Nelson: Heart of the Horn River Basin The regional service centre for the Northern Rockies, Horn River, Liard and Cordova Basins, Fort Nelson is characterized by an abundance of natural resources: lush mixed forests, exciting natural gas development, an emerging agricultural sector, and a tourism sector anchored by the Alaska Highway.

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29

tion of getting the economics together, which really means we need to get these LNG facilities built. Some producers are already involved in joint ventures, and their partners are injecting capital into the Horn River. These projects are expected to mature over the next few years.

What about the dreaded distance to market and related costs we hear about?

DR: The farther away gas is from the U.S. market, the more expensive the pipeline transportation. The counter to that are the types of reservoirs we have up in British Columbia – these are world-class gas assets – the betterquality reservoir makes up for its location. As we move into LNG projects, gas from Northeastern B.C. is actually some of the gas that’s closest to market, so that’s one of the reasons why Northeast B.C. is such a great spot to look at gas for LNG exports to Asia. Northeast B.C. is going to have an advantage getting to markets through any of the export points, whether it’s Kitimat, Prince Rupert, or others.

The Liard River Basin and Cordova Embayment are also in Northeast B.C. What are the basic differences between those and the Horn River Basin?

DR: It’s their stage of maturity. There’s much more history with the reservoir performance in the Horn River than we have in the other plays. As economics improve and more drilling gets done in the Cordova and Liard, you’ll start seeing activity accelerate there as well.

On April 11th, 2013, yourself and the former chair of the HRBPG, Rob Spitzer, teleconferenced with us when the Government of British Columbia and the Northern Rockies Regional Municipality (NRRM) announced a landmark agreement called IDCA (Infrastructure Development Contribution Agreement). It is a long-awaited fair-share type agreement unique to needs of Fort Nelson and area that addresses infrastructure shortfalls and requirements. The municipality can receive up to $10 million a year for 20 years with potential for extension. And, on June 8th the NRRM held a referendum to seek monies for five specific projects, which passed 90 per cent in favour. With such positive changes for Fort Nelson, are you encouraged that the

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town will be the primary service centre for the Horn River Basin?

DR: There has been a constant lack of infrastructure and challenges meeting the growth needs in Northeast B.C. The producers group is extremely supportive of the initiatives to start adding infrastructure there because we absolutely believe that the gas development is going to happen. We absolutely believe the LNG facilities are going to get permitted on the coast. When you’re looking a few years down the road from now at the activity levels we’re going to see in Northeast B.C., they’re going to grow very dramatically and very quickly once those final investment decisions are made.

The announcement to start putting strategic investment into infrastructure with steady predictable funding over the next several years is very welcome.

While new infrastructure will help to attract families to Fort Nelson, the town and the gas patch currently experiences the fly-infly-out model. Better transportation routes to and from the patch are required. What are your thoughts on a centre-line road?

DR: The closest analogy would be the Sierra-Yoyo-Desan, a public-private partnership. The producers group has had a number of very good meetings with the Ministry of Transport about a central corridor road. Right now with activity levels down, it’s tough to justify that expenditure so you’re seeing hesitation. But looking out two or three years, I think that road definitely needs to be built. On the fly-infly-out versus live-in issue, you’ll see a slow transition when you get steadier activity.

There are areas of the Horn River Basin that are closer to Fort Nelson where you can have staff commuting easily to and from. There will be an economic incentive to move away from the fly-in-fly-out model, though some areas are too remote to safely commute. Most of the producers want to see Fort Nelson as an industry service hub for the Northeast. S

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Human resources for B.C.’s resource economy

By Jen Reid, on behalf of the British Columbia Construction Association (BCCA)

L

ong before many of the proposed LNG, pipeline, and resource projects get in the ground, many communities in the North are already feeling the pressure.

With several northern cities already at three to four per cent employment – essentially, anyone who wants a job is in one – the current response from employers and employment agencies in the North when asked about finding skilled tradespeople is pretty succinct: “There’s nobody left.”

“We’re running short.”

This is an issue concerning businesses looking to embrace the unique opportunities offered by current and proposed resource projects in the North. The recent BuildForce report, Construction Looking Forward: British Columbia 2013-2021 identifies a number of construction trades that are significantly undersupplied. Some of these are classified as critical shortages – that is: “Needed workers meeting employer qualifications are not available in local or adjacent markets to meet current demand so that projects or production may be delayed or deferred.”

These projections require a more creative hiring approach.

Employers must have a plan for their personnel before they bid on a project, digging a little deeper to find (and develop) the skilled workers they need.

BCCA president Manley McLachlan explains the situation as tactical: “We must be as strategic in planning the development of our industry’s labour resources as we are in developing our country’s natural resources.”

Working with non-traditional labour pools is a start. Many of the proposed projects – particularly in the Northeast – reportedly include requirements to work with the nearby communities, which are largely aboriginal. These agreements, which honour the local populations, offer the greatest benefit for the term of construction and well beyond; ensuring those who are most affected are those who most benefit.

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32 B.C. Oil & Gas Report • 2013

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For example, the estimate for these projects is one permanent job for every seven or eight temporary jobs over the course of construction. With just one major effort in the North projecting a hire of 7,500 individuals for construction over the next several years, that leaves a thousand permanent jobs to remain in the nearby communities. With this in mind, developing the skills capacity of the local population is key.

“What we’re looking at now is getting training aligned with those needs, and at transferability of skills in the North, so that when one project ends, others are coming on stream,” says Paul Mitchell, provincial manager for the B.C. Construction Association’s Skilled Trades Employment Program (STEP). “For instance, we’ve taken people from large projects in the Northwest and successfully engaged them in the Northeast. If these projects go ahead in the next few years, that’s a five-year opportunity in many cases. That’s an opportunity to put an entry-level person in there and they will come out a journeyperson. And that’s cool.

That’s what gets young apprentices engaged.”

He adds, “we can come in and provide support, and partner for training opportunities; the employer does the hire. That process can take several months or a year; but in situations like we have with these resource projects, it can easily align with the opportunity that’s going to unfold.”

In response to this, the British Columbia Construction Association (BCCA) and its human resource programs are working with employers to respond to their demand – starting at home.

JobMatch, which connects unemployed individuals with jobs in the construction sector, recently completed its pilot program and was renewed in early 2013, following results well beyond the original goals. STEP, on the other hand, is focused on improving opportunities for the employed and underemployed to build careers in the skilled trades through certifications, training, and apprenticeships, and continues to build on extremely strong results since its 2006 launch.

Both programs work to assess the strengths, skills, and attributes of individual workers to ensure a quality labour supply for construction employers, and ensure an effective connection between employer and employee.

Together, the programs have connected roughly 6,000 individuals with jobs in the construction sector, to significant benefit for each, but also with a wider reach. Bruce Lund, the provincial manager for JobMatch, summarizes the effort as follows: “What we’re trying to do is maximize the medium and long-term benefits for the local community where the site is, and for the overall community – the broader provincial economy.”

Lund explains the current status for his staff in the North: “We’re already placing people every day in the projects that are

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Kevin McTavish (STEP regional employment placement specialist) and Aaron Smith (STEP participant, apprenticeship sheet metal worker) on site.

live, including a number of block placements. We recently placed 20 people within a single day, and then repeated it again within the same week. The JobMatch program is like speed dating – we’ve received the request, identified and placed a client in 48 to 72 hours. That’s about as fast as you can hire; those kind of transactional relationships are happening now.”

“At the same time, STEP is involved in the continuum of upgrading, and we can talk about a lot of supports,” says Mitchell.

“You’ve hired labourers and we ask – do any of these look like they’re ready to become apprentices? Can we help you with that?

We’re finding new people for their company, or helping to build training programs for their team. We can help the individual to get the certificates they need – and the employer doesn’t have to pay for it. That’s a big issue for a lot of employers. We hear ‘I don’t have time’, or ‘I can’t afford to train someone’ – and we can respond to that.”

While the programs’ field representatives expand their search and support methods only once the local labour market for the needed workers is exhausted, other options are available.

Recruiting from beyond Canadian borders has become increasingly necessary in order to find highly skilled workers with in-demand specializations; in these cases, Foreign Skilled Workers BC (FSWBC) offers international search and immigration support for B.C. employers who have not been able to source 34 B.C. Oil & Gas Report • 2013

journeypersons and other construction professionals within Canada who boast the sufficient experience and certifications to complete the projects to required specifications – or to be able to train Canadian apprentices.

“You can’t build something like the LNG projects with apprentices,” says Mitchell. “You’ve got to have skilled tradespeople; once you have those you can take on more apprentices.”

Alternatively, the programs’ provincial network allows for field representatives to connect and assist with the relocation – usually temporary – of workers in the southern parts of the province, benefiting not only the projects, but the workers’ home area.

Lund echoes this in practical terms for those of us well outside of Kitimat and Fort St. John. “There are a number of people in the south parts of the province who encourage temporary relocation to the North.”

“At the end of the day they’re going to get a lot more journeypeople getting experience much faster than they can get by the level of activity currently available in the South. And by the time they’ve finished these projects, they’ve become journeypersons.

After these projects are done, there are so many boomers retiring in the coming years that they can use all those freshly minted journeymen – permanently – at home in the Okanagan. There’s this ebb and flow of mobility that’s going to happen.” S

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‘Wanted’ – Businesses to serve emerging communities of Prince Rupert and Port Edward, B.C.

P

rince Rupert and Port Edward British Columbia are on the verge of an extraordinary future as vibrant, diverse, and sustainable economies are connecting North America to the world.

The Prince Rupert and Port Edward region present a wealth of opportunity for entrepreneurs and corporations of all sectors and sizes. With over $20 billion in proposed developments in the immediate area, few locations these days offer a greater diversity of business possibilities that include everything from manufacturing, warehousing, research, operational maintenance, security, training and labour services, through to retail and hospitality services. As a market that is generally considered underserved in many sectors, the opportunities are vast.

In fact, investment is not only welcomed in Prince Rupert and Port Edward, but encouraged to help meet the needs of a growing industrial base and those residents who proudly call it home.

Historically, Prince Rupert and Port Edward relied on forestry and fishing to sustain their economies, but it wasn’t until the mid-2000s that they embarked on a new path to become world-class transportation hubs. Since the opening of the Fairview Container Terminal in 2007, Prince Rupert and Port Edward have been home to one of the fastest-growing ports in North America. The Port of Prince Rupert offers its clients many strategic advantages, including the distinction of being the closest North American port to Asia by up to three days.

The success of existing terminals, favourable market conditions, and a suite of significant competitive advantages are all contributing factors to Prince Rupert’s and Port Edward’s abilities to attract ad36 B.C. Oil & Gas Report • 2013

Construction of Pinnacle Renewable Energy’s $42 million wood pellet export terminal is underway and expected to be complete by the end of 2013. ditional investments in port infrastructure. These days, more than $20 billion in private investments in port terminal developments are being considered within Prince Rupert harbour limits that include expansions of the coal and container terminals and new wood pellet and potash export facilities. Highlighting that investment potential are plans for several liquefied natural gas (LNG) terminals. At a cost of roughly $10 billion per facility, each LNG plant represents significant opportunities for local business development and job creation during construction and operational phases.

The U.K.’s BG Group intends to build a facility on Ridley Island, which would have an initial production capacity of 14 million tonnes of LNG per year. At full build-out, the terminal would be capable of producing 21 million tonnes of LNG per year. The project is called Prince Rupert LNG and would create 3,500 jobs during construction, 250 permanent direct jobs, and another 250 spinoff jobs.

Malaysia’s Petronas, through its subsidiary, Progress Energy Canada, is planning to build the Pacific Northwest LNG export facility on nearby Lelu Island.

This proposed facility would have an initial capacity of 12 million tonnes of LNG

a year with expansion possibility for a subsequent six million tonnes per year.

Similar to Prince Rupert LNG, the Pacific Northwest LNG project would create up to 3,500 new construction jobs at peak activity, and 200 to 300 direct permanent jobs once operations begin.

With over $20 billion in LNG and other terminal developments planned in the Prince Rupert Harbour, Prince Rupert and Port Edward are embarking on one the most exciting growth periods in recent history and now is the time to expand into the region and enjoy the many strategic advantages the communities have to offer, including a growing and diverse economy, job growth, growing population, exceptional quality of life, and affordable commercial and residential real estate options.

If you’re interested in being part of the excitement in Prince Rupert and Port Edward, the economic development office wants to hear from you.

For more information, contact Derek Baker, economic development officer for the Prince Rupert and Port Edward Economic Development Corporation, at 250-627-5138 or by email, derek.baker@princerupert.ca. General information can be found online at www.predc.com. S

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Are the capital risks too high to invest in B.C.’s LNG industry?

By Jay Roberge

E

ver since hydraulic fracturing technology first extracted natural gas from tight shale rock, both the natural gas and overall energy sectors have been going through a major transformation.

Just a little over five years ago, liquid natural gas (LNG) plans were being drafted to build LNG import terminals in Kitimat, B.C., and in Louisiana, U.S.A. The “fracking” revolution took natural gas production to all-time highs, supply in inventory swelled, prices collapsed, and plans for LNG import terminals were turned into export terminals to sell the massive surplus to Asia where prices remained high.

During this time, new shale gas production allowed the United States to surpass Russia as the biggest producer of natural gas on the planet, and in doing so, went from being Canada’s biggest customer for natural gas to being its biggest competitor. Technology was exported to markets outside of North America, and more countries like Australia started to open massive shale gas fields, and the global race to exploit shale gas and tap Asia’s $150 billion LNG market had started.

But many point out that investing in the latest technology for LNG infrastructure to pipe shale gas from Alberta and B.C. to Kitimat, where it can be superchilled and loaded onto LNG tankers, has price risks. The capital costs of building LNG infrastructure and processing terminals is very high, costing billions of dollars. Increased domestic demand could increase domestic prices, making

domestic sales more profitable than LNG export sales. At the same time, increased international LNG supplies and exports to Asia could decrease natural gas prices in Asia, again making LNG exports from Canada less profitable.

However, the risks of investing in LNG should also be weighed against not doing anything at all. Much like Canada’s oil market, it would be short-sighted to not invest for the long term and in building out a secondary market for Canadian natural gas. Not having a pipeline and LNG export terminal on the West Coast leaves Canada with only one customer for its production surplus – the U.S.A. – who simply does not need to import natural gas from Canada. With no LNG export capability, Canada will not be participating in the global market of what is developing into one of the most important sources of global energy for the next century due to the abundance and comparatively lower carbon footprint of natural gas to other carbon fuels – namely coal and oil.

The true economical risk is the decline of a multi-billion-dollar Canadian industry that generates hundreds of millions in revenues that the various governments (which supports other government and social programs), primary and ancillary economic activity, and employs thousands of people right across Canada, will simply be lost.

Though domestic natural gas prices have recently increased, prices are still down more then 50 per cent from the previous decade. Drilling activity for natural gas is down over 50 per cent in 2012,

gas-weighted TSX-listed companies are down over 40 per cent, and government royalties are down. Investing in Canadian LNG is needed to save this important industry.

By having LNG infrastructure and terminals, new jobs are created, economic activity grows and Canada connects into the global LNG supply chain that is being built now and retains its leadership role in the global energy market not just for production but technology and innovation. Canada can move from being the largest provider of natural gas to the U.S.A., to being the largest provider of natural gas to the world along the same level as Qatar. Without LNG, this growth opportunity is lost.

It takes serious in-depth analysis and economic assessment to make the decisions necessary to invest the vast amounts of money necessary to invest the capital necessary to build the infrastructure needed to export LNG. It requires longterm thinking and planning and the biggest names in the energy industry are betting on British Columbia. Major international companies like Chevron Corp., Shell, and Petronas are betting and investing in British Columbia with the latest technologies because of a favourable regulatory environment and shorter shipping distance to Asia.

And its not just major companies… countries are also choosing B.C. Japan recently announced their interest in moving a Canadian LNG project forward with $10 billion in loan guarantees to private Japanese companies that make investments into providing Japan with a stable

Not having a pipeline and LNG export terminal on the West Coast leaves Canada with only one customer for its production surplus – the U.S.A. – who simply does not need to import natural gas from Canada.

38 B.C. Oil & Gas Report • 2013

supply of natural gas. They have made similar investments in Australia. This international investment support also helps reduce the risk considerations investing into Canadian LNG. Being early in exporting to Asia will allow the negotiation and settlement of long-term contracts (one of the benefits of LNG) before additional competitors enter the market. The race has already started and British Columbia is moving forward in the right direction. Canada has a lead on the U.S.A. to export to Asia, and the Douglas Channel Energy Partnership (DCEP) will likely be the first LNG facility to begin exporting in 2015.

Cheniere Energy’s terminal in Louisiana is not expected to be operational until late 2016. Continued cooperation, globally competitive regulations, and royalty structures must be maintained in order to keep and build on existing momentum.

In addition to Douglas Channel, Can-

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ada has three facilities approved compared to only one in the U.S.A. American policy-makers are split over LNG exports for fear of driving up domestic prices. The U.S.A. and Canada are, and should, make natural gas a larger part of the overall domestic energy mix using it more for power production and transportation. Canada does not have nearly the same concerns, as it has lost its largest customer to the south, and has a surplus of shale gas that far exceeds an increasing domestic demand for the foreseeable future. Regardless, with LNG, Canada will no longer be beholden to just one buyer.

B.C. and Canada can compete with the U.S.A. As Canada’s gateway to Asia, B.C. enjoys the advantage of geographic location with shorter shipping distances to Asia than Louisiana, which provides a lower overall shipping cost and shorter times to delivery. Perhaps overlooked and just as important, Canada enjoys a lower

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political risk profile for many natural gas buyers in Asia – especially China – that will work to Canada’s competitive advantage over the long-term.

Canada has a great history of competing and winning. Thinking long term and making wise investments into a robust domestic LNG infrastructure will allow Canada to compete in the global LNG market. With no LNG infrastructure, Canada will simply not be competing.

They won’t even be in the game.

Jay Roberge is an entrepreneur and merchant banker based in Vancouver, focused on energy, resources and technology.

He is the managing director and partner at Tehama Ventures Inc. and has been a long-time believer in the global opportunity of shale gas dating back to the first holes drilled in North America. He is a past contributor to the B.C. Oil & Gas Report magazine and also posts some of his opinions on HornRiverNews.com. S

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B.C. Oil & Gas Report • 2013

39

The energy pathway

T

he northwest of British Columbia is experiencing unprecedented economic opportunities. A region that has historically been supportive of industrial development

The communities in northwestern B.C., including Kitimat

is on the verge of diversifying its industrial economic base and

hard to get ready for the investment influx into the communi-

adding to its already existing and established industries.

ties. The B.C. Government has supported the labour and skills

The proposal of several LNG plants along the coast of north-

gap issue with several studies and programs, and the action

ern B.C., the connecting pipeline infrastructure from the gas

plan is in place to assure local people will be able to participate

reservoirs in Northeast B.C., and Enbridge’s Northern Gateway

in the job opportunities.

project, have enormous economic implications not only for the

Today, B.C. has a provincial government committed to energy

region, but also for the province and Western Canada as a whole.

development. Their focus is to fast-track government response

The necessity to diversify Canada’s customer base for its

so industry can set up successfully.

energy products and open up the growing and energy-hungry

This commitment by provincial and regional stakeholders

Asian markets for future revenue and royalty streams will result

must be met with community support through an authentic

in healthier, more robust businesses and communities.

commitment by proponents to inform, engage, and invest in

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and Prince Rupert as ports, and Terrace as a retail and service hub, are all open for business and have worked diligently and

the communities they wish to be active in, from initial introductions through the lifetime of a project.

The communities of Northwest B.C. recognize that the sheer volume of jobs needed to build the infrastructure will additionally require the ability for communities to be welcoming to immigrant workers who will come and help to construct this vital infrastructure that will then bring long-term, sustainable jobs for decades to come.

The initial spark investments, listed at above $60 billion in June 2013, will deliver enough economies of scale to the supply and service industry. This will additionally create a robust, blossoming, and healthy economic environment, which will more easily cope with market changes as it will be diversified and protected by a broader customer base.

The demands of Canada’s, and especially B.C.’s, challenging geography, paired with world-class environmental engineering companies, will deliver state-of-the-art energy delivery solutions. This knowledge and innovation derived from B.C.’s high-environmental standard, coupled with its natural resource economy, could one day become an export product in itself.

This knowledge gained by developing world-class processes and standards for the extraction and delivery of energy will become part of the legacy in developing the energy pathway.

KTIDS Northwest, a society based in Terrace, B.C., is a local group of industrial development champions that can be a resource for energy and supply companies seeking orientation to the region, introductions to local contacts, or guidance regarding community relations.

We look forward to being part of this exciting change and to supporting the region, the province, and Western Canada to develop community programs, legacy initiatives and a long-term, sustainable supply chain. S

KTIDS Northwest | www.ktids.ca | 250-635-8883 | 3224 Kalum Street, Terrace, B.C., V8G 2N1 B.C. Oil & Gas Report • 2013

41

A decade of safety improvement on the rigs

By Cindy Soderstrom, manager, communications, CAODC

I

t takes just one to drive change and leave a positive legacy in the world.

And this is true for an industry’s safety culture: it’s an attitude, a culture, and one person has the power to influence it.

In April, the Canadian Association of Oilwell Drilling Contractors (CAODC) hosted its 33rd annual Safety Award Banquets in Edmonton, Alberta. Over 2,700 drillers and rig managers from drilling rigs and service rigs were awarded a 2013 Safety Award. These individuals were nominated by their employers.

The criteria to be eligible for an award is completing 200 consecutive days of operations without an incident.

Drillers and rig managers are making a difference in the industry’s safety performance. They are having an impact by reminding crew members to buckle-up when driving to and from the rig site and by reminding employees to check in after they leave the job site to travel home. Rig crews take time to assess hazards before beginning a critical task.

They stop the operation when someone notices an unsafe environment.

These individual acts have contributed to an astonishing difference in the industry’s safety record. CAODC data shows that 10 years ago, incident

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frequency as measured by CAODC’s TRIF formula, showed that 10 incidents or more occurred every 100 operating hours. Today, TRIF has been slashed by more than half. In fact, the rig industry has cut that rate down to one-third of the 2002 TRIF. That’s not an anomaly. That’s what industry has maintained for three years running.

Statistics from WorkSafeBC show that incident rates on rigs operating in B.C. are well below the combined average from all industries. WorkSafeBC measures how many time-loss claims are made for every 100 years of employment. Data between 2007 and 2011 shows that when time-loss claims are averaged from all B.C. industries, the injury rate works out to be between two and three. Data for only the drilling industry from that same time period puts time-loss claims between 0.4 and 0.8.

Data for service rigs and other oilfield services shows time-loss claims between 0.9 and 1.3.

Regulators have noticed this industry’s commitment to jobsite safety, especially those involved in occupational health and safety. Bob Ross, for example, used to work for Saskatchewan OH&S. Today he’s the managing director of Enform Saskatchewan, but some time before that, he earned a paycheque from the rigs, working as an assistant driller in the 1970s. He knows – firsthand – what the benchmark was for rig safety back then. Today, he applauds the rigs’ commitment to an everimproving safety record. His comment regarding today’s stance toward safe work? “When this industry committed to changing their mindset on that matter, it made the change quickly. That’s the beauty of this industry: the speed it likes to work at and its commitment to improve.”

The safety culture in this industry has benefits beyond the rig site. A

little-known story from 2010: a service

The rig industry is moving in the

rig crew helped save the life of a man

right direction. Focus is still required.

in a vehicle accident. The rig crew was

WorkSafeBC statistics further note that

travelling to a job. They witnessed the

the disabling rate of injuries is higher

accident: a truck with a trailer skidded

for the oil and gas industry than in oth-

sideways across the highway and then

er industries. Training standards have

rolled – multiple times – into a ditch.

been introduced through the rig tech-

The driver was thrown from the vehicle.

nician trade and the Service Rig Com-

The crew quickly mobilized, putting

petency Program, and innovation and

into action their first-aid training and

technology have helped to engineer out

assuming the team roles they would

hazards.

adopt for an emergency drill. They not

But most of all, our improved safety

only stabilized the injured driver; they

record rests on the influence of employ-

managed the scene, gathering data from

ees who demonstrate again and again a

other witnesses and contacting emer-

commitment to safety.

gency services.

The improved safety record has come

Their experience in man-down drills

from the influence of crew supervisors.

meant they knew how to deal with the

This influence has made rigs safer and

emergency. When asked about their

companies more competitive. It has

quick response, they credited the repeti-

helped this industry to be the example

tion of those drills for giving them the

of what a change in mindset can ac-

confidence to act.

complish. S

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43

Encana receives top honours for responsible Canadian energy development Recycling program in Horn River Basin among the three diverse projects cited

In 2009, in an effort to reduce the amount of material being diverted to local landfills, Encana began a waste reduction program in its work camps in the Horn River Basin. The project was one of three recognized with the CAPP President’s Award received by Encana on March 20, 2013.

T

he merits of three distinct initiatives from across Encana’s operations, including a unique

recycling project in British Columbia’s Horn River Basin, recently saw the company receive the President’s Award in the Canadian Association of Petroleum Producers’ (CAPP) 2013 Responsible Canadian Energy Awards.

The President’s Award, announced March 20, is presented to energy com-

throughout our operations and it’s important that we as an industry continue to improve our performance.

These types of initiatives help support our business, improve our relationships with important stakeholders and help continually raise the bar on our environmental, safety and social performance,” said Mike McAllister, executive vice-president & president, Canadian Division.

panies for activities that demonstrate exceptional environmental, health and safety or social performance.

Historically awarded on the environmental, health and safety and social performance of a single project, this year’s President’s Award focused on the three Encana projects described next.

“Responsible development is a key component of our business model 44 B.C. Oil & Gas Report • 2013

Horn River Recycling Program In 2009, in an effort to reduce the amount of material being diverted to local landfills, Encana began a waste reduction program in its Horn River work camps. Recyclables were collected at the camps and stored in 50foot trailers before being transported to Fort Nelson and donated to local

community groups. These groups were then able to sort the material and return containers to receive the refunded deposits.

By 2011, it had become difficult to find groups able to sort an entire trailer of material. In 2012, to address this challenge, Encana and The Northern Rockies Social Planning Council created a sorting facility where individuals with barriers to employment, fundraising groups and others in need are able to sort the containers and return them for cash. To date, Encana has diverted 20 trailers of for-deposit containers from the landfill, providing over $60,000 in revenue to the community.

Race Against Hunger Encana’s longstanding support of rural lifestyles was the premise for de-

Encana’s Race Against Hunger program with the World Professional Chuckwagon Association raised $11,285 and 1,085 pounds of food for Dawson Creek-area food banks in 2012. The initiative was one of three projects recognized with the CAPP President’s Award received by Encana on March 20, 2013.

Mike McAllister, executive vice-president & president, Canadian Division, accepts the CAPP President’s Award on behalf of Encana on March 20, 2013.

veloping Race Against Hunger, a partnership with the World Professional Chuckwagon Association that benefits local food banks in Encana’s operating areas in Alberta and British Columbia.

Now in its third year, the initiative has received overwhelming community support, raising more than $100,000 and almost 12,000 pounds of food in 2012. In Dawson Creek alone last year, the campaign raised $11,285 and 1,085 pounds of food for area food banks.

Responsible Products Program Developed in conjunction with

third-party toxicologists, the Responsible Products Program allows Encana to make objective, accurate assessments of its hydraulic fracturing fluid systems for potential impacts to human health or the environment using widely accepted toxicological criteria. Encana then identifies any required operational controls to allow for responsible use of the additives or eliminate them from use entirely. The program has been shared with CAPP in support of the Fracturing Fluid Additive Risk Assessment and Management operating practice. S B.C. Oil & Gas Report • 2013

45

BC Oil and Gas Commission launches innovative water tool

By Maria Reschke

A northern B.C. watershed.

T

he use and protection of water in the oil and gas sector has become an important topic in the province of British Columbia. Water traditionally has a number of

velopment must be collaborative, involving academics, research-

uses, from dust control to machine washing, but its use for

a specialized team, a highly innovative, GIS-based program was

hydraulic fracturing has increased overall use. In the last six

made available on the commission’s website. The Northeast Water

years, the province and jurisdictions across North America

Tool, or NEWT, is a tool that is unique to North America and is

have seen a shift from conventional to unconventional sourc-

designed to query locations on rivers or lakes throughout North-

es of natural gas, and with that, the increased utilization of

east B.C for information on water availability, existing use, and

hydraulic fracturing, and thereby water, to unlock those re-

environmental flows.

sources. Six years ago in British Columbia, about 15 per cent

The commission formally engaged with hydrology and water

of wells targeted unconventional sources, and by 2012 it rose

resource specialists from B.C. universities and elsewhere to help

to over 80 per cent.

guide the NEWT hydrology. Funding and support was provided

With such a shift, the BC Oil and Gas Commission (commis-

by the Ministry of Forests, Lands and Natural Resource Operations

sion) realized a quick and efficient regulatory response on water

(FLNRO) and Geoscience BC, an industry-led, not-for-profit, ap-

use was required. Regulating this changing industry required the

plied geoscience organization.

commission to have critical information on hand, not only to

The impact of NEWT is wide-ranging. Not only does it help in-

be confident it was making informed decisions on permits, but

form commission decisions, but also addresses the critical need

also that permits could be managed in times of extreme weather,

for water information by industry, First Nations, communities,

such as the droughts of 2010 and 2012.

government, and the public. Its availability increases transparency

It was recognized that a water-resource decision-support tool

surrounding the oil and gas industry’s use of water and helps to

was required to aid in managing the decision-making process of

address concerns of the public and media. Industry uses it to assist

water use approvals. This tool would need to be strongly science-

with water planning, and with First Nations to help understand

based, it must be publicly available and transparent, and its de-

potential impacts of water withdrawals in traditional territories.

46 B.C. Oil & Gas Report • 2013

ers and government specialists.

After 20 months of extensive collaboration and hard work by

Screenshot of the Northeast Water Tool.

Not only is this hydrology tool well-based in science, it is easy to use and understand and makes detailed water recourse information available to anyone who might be interested. Users are able to access detailed maps which outline the watershed upstream to any particular river, creek, or lake selected. Locations can be chosen by coordinates or simply by selecting a location on the map. By zooming in or out, the user is able to move quickly to another location for the next query.

Details on all water-use permits and licences on a given location can be easily accessed simply by requesting NEWT to produce a PDF report. The report includes all active permits and licences upstream of the query location that are authorized by

A natural resource officer from the BC Oil and Gas Commission uses NEWT to make a decision on a permit.

NEWT has already become a model for other jurisdictions.

Alberta is now applying similar concepts to create a hydrologybased and publicly available decision support tool and hopes to have work completed in late 2013. The commission’s NEWT developers believe the approach could be replicated across North America.

The mandate of the commission is to ensure oil and gas resources are developed for the benefit of all British Columbians.

the commission and all other government agencies. This in-

In order to accomplish this, it is paramount to anticipate indus-

cludes details such as the volumes of water that have already

try trends and how they will affect the environment and public

been licensed or approved for use, detail on environmental

safety. NEWT is a tool that provides the commission with the

flows, and the volume of water that might be potentially avail-

required data needed to assess water trends and make decisions

able for use by industry.

in the interest of all British Columbians. S B.C. Oil & Gas Report • 2013

47

Serving the profession and the professional The Society of Petroleum Engineers

By Melissa Schultea, SPE senior manager, Canadian Activities

D

espite what the name implies, membership in the Society of Petroleum Engineers (SPE) is not limited to petroleum engineers. In fact, about two-thirds of SPE’s professional members have degrees in other engineering fields such as mechanical or chemical engineering. In addition, a significant portion of SPE members hold non-engineering degrees in areas including geology, physics, chemistry, and business.

SPE’s more than 110,000 members represent a diverse crosssection of engineers, managers, consultants, geologists, and more – all tasked with meeting the world’s growing energy needs in a sustainable and environmentally friendly manner.

To assist in meeting this challenge, SPE provides the latest technical knowledge and professional development through such resources as conferences, workshops, and technical exhibitions; training courses; periodicals and books; and local section meetings.

With members in 141 countries, SPE is the largest individual member organization serving managers, engineers, scientists, and other professionals worldwide in the upstream segment of the oil and gas industry. What makes SPE unique is that it exists primarily for the benefit of its members, who are both owners of the organization and its major customers.

SPE understands the importance of continuing education for honing skills and developing new ones, as well as expanding expertise and knowledge. The SPE Canada office in Calgary, home to one of the organization’s three training centres, offers an array of programs and courses that address six technical disciplines: drilling and completions; HSSE and social responsibility; management and information; production and operations; projects, facilities, and construction; and reservoir description and dynamics.

Courses on Thermal Reservoir Stimulation for SAGD and Forecasting Well Production Data in Unconventional Resources are just a two of the many training courses scheduled for 2013. A complete list of training courses is available at www.spe.org/training/courses.

In addition to the training courses, SPE holds conferences and workshops each year in Canada. Calgary served as the host city for the Heavy Oil Conference-Canada in June. The Progressing Cavity Pumps Conference was also held in Calgary, August 26 to 27. Attendees learned about real-life field applications, applicability of current and future PCP technologies, well optimization using PCPs through proper automation and monitoring, and much more.

In November, SPE will host the Unconventional Resources Conference-Canada in Calgary. The conference and exhibition will showcase the latest techniques and best practices for discovering, developing, and producing unconventional resources in North America.

Upcoming workshops include Production Forecasting in October. For a listing of workshops and conferences as their details are finalized, visit the SPE event calendar at www.spe. org/events/calendar.

SPE publications, considered the leading source of industry technical applications, issues and discoveries, cover all aspects of the upstream oil and gas industry. Among its library of periodicals, it publishes the Journal of Canadian Petroleum Technology. This bi-monthly, peer-reviewed journal focuses on heavy oil and oil sands technology, thermal recovery techniques, unconventional gas supplies, optimization techniques, increasing recovery from older basins, and other technologies designed for the production challenges of Canada and similar producing regions. View the current issue at www.spe.org/publications/jcpt.php.

SPE has six local sections to meet the needs of the Canadian E&P industry: Calgary, Edmonton, Halifax, Lloydminster,

Gar-North Ent. is a locally owned Pipe Bending Company located in Fort St. John BC for the past 8 years. We service Oil & Gas Companies in BC and Alberta.

Saskatchewan, and St. John’s. These sections link members to

Box 6492, Fort St. John, BC V1J 4H9 Phone: 250-785-9914 • Fax: 250-785-9766 • Cell: 250-262-9917 E-mail: garnorth@telus.net

with industry colleagues.

48 B.C. Oil & Gas Report • 2013

technical knowledge through distinguished lecturer visits and locally organized events, as well as networking opportunities For more information about SPE’s Canadian activities, visit www.spe.org/canada. S

SPE is where you are.

Providing technical information to the Canadian E&P market SPE is a not-for-profit professional association whose more than 110,000 members globally are engaged in oil and gas exploration and production. As a key resource for technical knowledge, SPE provides publications, events, training courses, and online resources at www.spe.org.

When you become a member of the Society of Petroleum Engineers, you join the brightest minds in the E&P industry, gaining access to new people, new places, and new ideas from all over Canada, and 140 other countries as well.

SPE has something for everyone working in the upstream oil and gas industry, no matter where in Canada you may be.

Join our worldwide membership today at www.spe.org/join.

British Columbians want answers from pipeline industry

By Sandra Burns

Preparing the pipeline. Courtesy of Spectra Energy.

I

t seems everywhere you look, whether it’s coffee houses, local playgrounds or boardroom tables, British Colum-

bians are talking about the oil and gas sector, or more specifically, the pipeline industry. With all the personal opinions, misinformation and half-truths floating around, it can be difficult to make sense of it all. Not to mention, with the advent of social media, in which the speed of information is measured in nanoseconds, misinformation quickly becomes the truth.

So, providing honest, straightforward, factual-based answers to British Columbians from credible sources is paramount to earning the trust of British Columbians.

The pipeline industry has been part of Canada’s critical infrastructure for decades.

It started with the construction and operation of the first 25-kilometre cast-iron natural gas pipeline in 1853. Then, the first crude oil pipeline was completed in 1862, 50 B.C. Oil & Gas Report • 2013

and by the 1950s, with the discovery of an abundant supply of crude oil in the west, the TransMountain Pipeline system began transporting crude oil from Edmonton to Vancouver. Shortly after, Westcoast Energy, now Spectra Energy, began transporting natural gas from northeast British Columbia to the U.S. border. Today, our member companies operate approximately 115,000 kilometres of transmission pipelines in Canada, including approximately 9,000 kilometres in British Columbia.

This long and proud history has resulted in successfully transporting 97 per cent of Canada’s daily natural gas and onshore crude oil from producing regions to markets throughout North America. But, like anything else, there are risks involved. It seems that just when we’re trying to prove to Canadians that we’re one of the safest industries, a pipeline incident occurs.

And, after a while, it’s understandable that

people become leery of what it is we’re trying to say and do. The truth is, we are one of the safest methods of transporting large volumes of crude oil and natural gas, but we can no longer keep telling people that we’re safe. Instead, we need to prove it.

One of the ways we plan on doing that is through a program called CEPA Integrity First®. This program, which our member companies have been quietly working on for a few years now, is designed to advance the performance of the industry in the areas of safety, environment, and socio-economic issues. However, the initial focus of the program will be on two key areas: pipeline integrity and emergency management.

Pipeline integrity involves practices and processes that pipeline operators undertake in order to ensure that crude oil and natural gas is transported safely and within the intended operating parameters.

It also includes things like prevention technology, which among other things, examines the latest advancements of in-line inspection tools. Emergency management is the ability for a pipeline operator to respond to an emergency situation using a comprehensive and systematic emergency response plan.

In both these areas, CEPA will facilitate the collective review of our member companies’ integrity management programs and emergency response plans. The intention is to define a common set of requirements that will be adhered to by member companies on a consistent and ongoing basis. In doing so, it will provide increased transparency to the public through industry-wide performance tracking and reporting. We know that CEPA Integrity First® is not the answer to everything, but we think it’s a good start in demonstrating our industry’s commitment to continuously improving.

We’ve also heard from a number of sources that British Columbians want to know more about what happens in the event of a pipeline spill or leak. So, another initiative that our member companies are undertaking is to thoroughly examine the ability of a pipeline operator to respond to an emergency situation. Emergency response plans are activated as soon as the pipeline operator discovers the incident. They could involve large numbers of employees, contractors, government authorities, local emergency responders, and other key stakeholders who all have important jobs to do that will ensure the safety of the people and the environment.

The reality is that without pipelines, we wouldn’t be able to drive our cars, take the bus or hop on a plane. Pipelines also help deliver the raw materials needed for the petrochemical industry, which then refines the products and produces the plastic materials, which are then used in consumer goods. As Canadians, our lifestyle dictates the use of thousands of commercial plastic products every day; items such as

Pipeline right-of-way. Courtesy of Enbridge. garden hoses, plastic packaging, computer keyboards, and automotive parts and accessories, to name a few. In order to produce these products, pipelines are needed.

And, with the volumes that we’re talking about, pipelines are one of the safest and most efficient ways to transport raw materials, such as crude oil and natural gas, from areas of production to consumer markets. But, the reality is that not every Canadian is going to stop using these products overnight. If Canadians stopped using pipelines to get products to market, alternative forms of transportation would be used.

Another misunderstanding is the idea that CEPA’s pipeline operators would put profit before safety, which is also not true.

The majority of CEPA member companies own and operate large transmission pipelines that carry significant volumes of natural gas and crude oil. The member companies would not intentionally risk their operations or reputation in order to save money. Safety is their number one priority, which is why they have emergency response plans and procedures in place to account for any emergency situations that could arise. These plans are reviewed and updated, as required, by the pipeline operator and submitted to the appropriate regulator. Pipeline operators conduct regular emergency response procedures and inform everyone who may be associated with an emergency response activity of the practices and procedures to be followed.

Outreach activities are also conducted to inform nearby residents of what to do in the case of an emergency, as well.

And finally, oftentimes, we forget that the Canadian pipeline industry is also strictly regulated. If a pipeline crosses a provincial boundary, it is federally regulated by the National Energy Board. The regulatory framework takes a full lifecycle approach to pipelines, which means that a pipeline operator is expected to follow specific standards and procedures that relate to its construction, operation, and the retirement of a pipeline.

Providing answers to tough questions is something CEPA and its member companies are more than willing to do. British Columbians owe it to themselves and their future generations to learn as much as possible about the pipeline industry, come to their own conclusions, and be proud of an industry that has served us so well for decades. For more information on pipelines, please visit our website at www. aboutpipelines.com.

Sandra Burns is the manager of communications with the Canadian Energy Pipeline Association. Her background includes a wide variety of communications experience, including media relations and social media. Throughout her career, she has been published in various publications, as well as online. Burns holds a bachelor of arts in English from the University of Western Ontario and a MBA from the University of Edinburgh. S B.C. Oil & Gas Report • 2013

51

STEP into northeastern B.C. STEP Energy Services’ acquisition of Kamber Nitrogen Services expands benefits to operators in the Fort St. John region

By Graham Chandler

I

t’s a classic example of what’s called “synergy”—when two organizations come together and produce something better than the sum of their individual parts.

“We were looking for a strategic opportunity to further propel our growth in northeastern B.C.,” says Rory Thompson, operations manager at Calgary-based STEP Energy Services. A leading nitrogen pumping company in Fort St. John had recently expanded their services into coiled tubing and caught the attention of STEP. 52 B.C. Oil & Gas Report • 2013

“They offered a similar value proposition as STEP – coiled tubing services designed for the deep horizontal well market, as well as nitrogen pumping services, and they were operating in the heart of the Montney.”

STEP worked with the owners of Kamber Nitrogen Services who were aligned with STEP’s growth plans, and by midSeptember 2012 the acquisition was finalized.

Kamber was the first privately owned nitrogen company in northeastern B.C. and

had been operating out of Fort St. John since July 2006. Kamber built a reputation in the area as the premier nitrogen services company operating five N2 pumpers and a number of transport bulkers.

“Nitrogen pumping was a big market for us,” says Jamie Lawson, Kamber’s nitrogen manager. “Basically, it’s how we entered the coiled tubing side of the well intervention business.”

With a growing client base, Kamber decided to expand into the coiled tubing sector late in 2010. The company took de-

livery of its first Class III long-reach coiled tubing unit in November that year, followed by two reel-support trailers and a second coiled tubing unit in 2011. “We had success in the coil business and kept both rigs well utilized. When STEP acquired Kamber, we were ready to expand our client base even further,” says Lawson.

“So timing worked out pretty well.”

Likewise, the timing was right for STEP. Kamber’s two coiled units were integrated into the company, which, at the time, doubled STEP’s coiled tubing fleet. The acquisition also provided the opportunity for STEP to gain a geographic foothold in the prolific shale plays of northeastern B.C. and Alberta.

But there are more than just two winners with this synergy. The service centre in Fort St. John has since become the company’s full-service hub in the region, allowing STEP and Kamber to strengthen service, maintenance, and project support for clients in the area. Within the next six months, “our fleet will include a total of 12 coiled tubing spreads, six of which will operate out of Fort St. John,” says Thompson. “We anticipate the activity in the liquidsrich natural gas and oil plays, such as Duvernay and Montney, will continue through 2014 and we are well-positioned to help clients with their challenging well intervention programs.”

The synergies aren’t restricted to shops and equipment. The cultural fit was right as well.

“Kamber built a team of highly skilled and experienced operators,” says Thompson. “Their service model was aligned with our cultural philosophy of combining the most technically advanced oilfield services equipment with a team of experienced oilfield professionals to provide our clients with an exceptional experience on every project.”

Lawson agrees that STEP’s focus on building a team of oilfield professionals complemented Kamber’s growth priorities. “STEP’s people plan and core values of safety, trust, execution, and possibilities fit well with what Kamber was doing.”

The integration of Kamber into STEP was deliberately staged over a year period to ensure that the integrity of Kamber’s brand, its employees, and its client relationships were maintained and successfully transitioned to STEP. “As of September 2013, we have wholly incorporated Kamber’s people and assets under the STEP name,” says Thompson.

The majority of the company’s employees remained through

the transition, which allowed STEP to learn more about doing business in the area and the client relationships Kamber had established prior to the acquisition.

“We are fortunate to have such a great team of technically capable and client-focused field professionals servicing our clients in the northern areas of the Western Canadian Sedimentary Basin.” S B.C. Oil & Gas Report • 2013

53

The Unconventional Renaissance

By Kevin Heffernan

Un-con-ven-tion-al – adjective Innovative; out of the ordinary; productive of something fresh

B

ritish Columbia has an integral role in the future of the Canadian oil and gas industry, which has undergone significant changes in the past six to seven years.

For example, relative to natural gas alone, in 2007, 85 per cent of wells in B.C. targeted conventional gas while the other 15 per cent were horizontal, hydraulically stimulated wells. Single well pads meant increased infrastructure demands to get gas production to market. The sour content of natural gas was increasing dramatically, and North

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America was looking for imported liquefied natural gas to replace declining output from the Western Canadian Sedimentary Basin. Today, approximately 90 per cent of B.C.’s wells are targeting unconventional gas. Multiple well pads mean more predictable placing, dry holes are rare, shales are valuable reservoirs, and it’s imperative to find alternative markets for the province’s gas production.

The BC Oil & Gas Commission, as the industry’s regulator, utilizes continuous improvement as an important

Kevin Heffernan, President, CSUR part of their commitment to service.

This allows the commission to take advantage of newer technologies and better position the province going forward.

Our organization, the Canadian Society for Unconventional Resources (CSUR), like British Columbia, is technology-driven. The province, known for its world-class geoscience research, has been both an innovator in petroleum research and a pioneer relative to horizontal well drilling.

The oil and gas industry continues to evolve and change as a result of the unprecedented growth of unconventional resource exploration and production.

Across Western Canada, significantly, more horizontal wells completed with multistage hydraulic fracturing are being drilled than conventional vertical wells. Unconventional has truly become conventional. Horizontal drilling and hydraulic fracturing have been integral to that transition, and to the myriad of challenges that the industry must address in today’s resource development environment – social licence, commodity prices, capital requirements, market access.

CSUR has recognized the fundamental changes that all aspects of the industry are experiencing.

The resurgence of a strong and growing oil and gas industry in British Columbia – B.C. has four primary basins (Montney, Liard, Horn River, and Cordova) and cumulative, established unconventional gas resources of more than 1,000 trillion cubic feet – is a reflection of the impact technology can have.

The industry has also entered a new era of technological and operational transparency. Never before has our organization (CSUR) faced the number of inquiries about resource development and calls for engagement from the full spectrum of stakeholders – landowners, operators, communities, municipalities, NGOs, professional organizations, governments, and regulators – as it faced in 2012 and so far in 2013. In the past year, we undertook a doubling of face-to-face engagement with that spectrum of stakeholders, including involvement in 60 presentations, community, and multi-stakeholder meetings, symposiums, and workshops. In British Columbia and across North America, operators are also responding at the community level and through actions, including voluntary disclosure of chemicals, development and publication of hydraulic fracturing operating practices, increased community engagement, and collaboration to reduce the footprint of development. Service companies, too, recognize the need for transparency and visible recommitment to a set of health, safety, environmental (protection), and community values.

The evolution of technology is continuing from drill bits to software to geological models and it will continue to influence the way resources are developed, how we perceive Canada’s resource endowment, and how we talk to stakeholders and communities where the industry operates.

What plans does CSUR have to support and morph with the evolution? We will continue to: • Participate in speaking engagements, including face-to-face with communities and multi-stakeholder groups, for the purpose of raising the understanding and awareness of the technologies and development processes related to the unconventional resource industry in Canada, as well as

highlighting emerging resource play opportunities.

• Host our Technical Luncheon Series, field trips and play-specific workshops – these are popular learning experiences and in high demand.

CSUR’s flagship technical event is the 15th annual Canadian Unconventional Resources Conference (CURC), to be held in October 2013.

• Develop and update our Understanding booklet and fact sheet series, as well as the video collection, all of which are very popular destinations on our website for a diverse group of surfers and stakeholders, worldwide.

With a very keen group of staff and volunteers, we’ll also renew our efforts to tackle the communication and understanding challenges presented by audiences seeking improved science and engineering literacy.

• Engage in dialogue with governments and regulatory agencies to ensure a solid understanding of evolving technologies and development processes, and that issues identified by the industry are considered.

CSUR is active across Canada, facilitating communications and understanding between the unconventional oil and gas industry, provincial, federal and municipal governments, the public, First Nations, and the media. With a strong focus on technology transfer amongst professionals (engineers, geologists, etc.), CSUR’s major role is to provide this information that enables resource development in an environmentally, socially, and economically sensitive manner.

Kevin Heffernan is the president of the Canadian Society for Unconventional Resources. S

B.C. Oil & Gas Report • 2013

55

The voice of the service sector in B.C. Energy Services BC

By Art Jarvis

E

nergy Services BC (ESBC) is the “voice of the service sector” in Northeast British Columbia. We lobby government and campaign producers on behalf of B.C.-based contractors.

Since the successful completion of the provincial election, the enthusiasm has been electrifying. With the promise of four years growth and development, many companies are expanding, upgrading equipment, and diversifying with eager anticipation of involving themselves with liquid natural gas projects. Several retail and hospitality providers are ramping up to fulfill the needs of the employees of contractors poised to maintain the increasing requirements and demands of producers developing the gas fields of Northeast B.C., and ESBC is buzzing with phone calls and emails from companies wanting to join our membership.

ESBC is the liaison for B.C.-based businesses. As executive director of ESBC, I look forward to future conversations with Rich Coleman, minister responsible for Natural Gas and Housing; Todd

56 B.C. Oil & Gas Report • 2013

Stone, minister responsible for Transportation; and my monthly meetings with MLA and newly appointed minister responsible for Agriculture, Pat Pimm. A relationship spanning decades with Senator Richard Neufeld and MP Bob Zimmer is our window to conveying issues at a federal level, and regular meetings with mayors and regional chairpersons address municipal and regional districtrelated subjects. We persevere for the B.C.-based contractor.

June 24th, 2013 was recognized as the inaugural flight for WestJet in and out of Fort St. John. WestJet is now the third of three regional carriers (which also includes Air Canada and Central Mountain Air) serving this outstanding region of the province. The airport manager is quoted as saying “Energy Services BC’s contribution to achieving our goal in securing a third air carrier is duly noted and very much appreciated!”

Our annual energy expos are stocked with unique equipment specific to the climate and geographical challenges presented by the North. These expos, which

are hosted by ESBC, provide excellent networking opportunities, connecting producer to supplier and provide terrific information transfer face to face.

Lori Ackerman, mayor of Fort St. John, says, “Northern B.C. has the ability to change the conversation in the province. Natural gas alone can be a gamechanger. Understanding the opportunity for B.C. when B.C. businesses are active in industry development cannot be stressed enough. Energy Services BC is the voice of our energy service sector.

As a ‘go-to’ organization, they speak to the issues that are or can become barriers to strengthening the backbone of the Canadian economy – our small- and medium-sized businesses.”

The next few years, if not decades, project huge opportunities and longterm jobs in both Northeast and Northwest B.C., and ESBC will continue to play a major role in every step of this journey.

For membership information, please contact Art Jarvis at 250-263-8569, or by email, art@energyservicesbc.org. S

SYNERGY LAND SERVICES LTD., a full service land broker, opened its doors in Calgary in 2006. Synergy services clients in the oil and gas, minerals, power, renewable energy, highways, and telecommunications industries. The company has grown steadily and methodically under the leadership of partners Bill Giese, Keith Turner and James McCorquodale. In order to better service the needs of existing and new clients, Synergy opened offices in Fort Macleod in 2007, Regina in 2010, St. Albert in 2011, and Brandon and Cambridge in 2012.

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Changes to Enform’s COR program creates efficiency for energy industry employers

E

nform, the safety association for Canada’s upstream oil and gas industry, is making some changes. It has taken on new leadership, is streamlining processes, creating new resources, and enhancing its client services.

“We are in the process of overhauling some of our programs and systems to make them more effective,” said Cameron MacGillivray, Enform’s president and CEO. “We have a number of strategic priorities that we have set for ourselves that include enabling a culture of safety throughout our industry – and an important aspect of that is assessing safety performance.”

To that end, Enform, which has an office in Fort St. John, has streamlined its Certificate of Recognition program (COR), which reviews and audits companies’ health and safety management systems. COR is a well-proven method for energy companies to improve their health and safety performance and reduce any risks and costs associated with workplace incidents. Over the past year, Enform has created a more efficient application and auditing process. The new

audit protocol was released this past May and has been approved by governing bodies in British Columbia, Alberta and Saskatchewan.

“These changes to the COR program are intended to provide efficiencies for both companies and auditors with fewer overall questions and a more effective targeting of interview questions,” said MacGillivray.

The COR program has been offered by Enform since 1985, and to date, 1,778 Alberta employers, 554 British Columbia employers, and 422 Saskatchewan employers are COR-certified companies. The program provides quality assurance and protocols that support occupational health and safety guidelines and standards for safety procedures.

“Companies with solid health and safety management systems are able to identify and assess their workplace hazards and then systematically control the risks to their employees and overall operations,” said MacGillivray.

And it has paid off. Organizations with a COR generate a solid return on their investment in health and safety with

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www.calfrac.com 58 B.C. Oil & Gas Report • 2013

lower Workers’ Compensation claims costs. In 2012, for instance, industry employers who held a B.C. COR or SECOR (a similar certification program for small-sized companies) with Enform received approximately $2.1 million in Workers’ Compensation rebates through the WorkSafeBC’s Partners in Injury and Disability Prevention Program. Other statistics show a substantial reduction in lost-time claim rates.

Enform is the only certifying partner in Canada to provide COR protocols that are cross-jurisdictional, meaning that through Enform, only one audit is required for a company operating in multiple provinces. British Columbia, Alberta and Saskatchewan each have their own set of COR standards.

“We are very pleased with the response we have been getting on our new streamlined process,” said MacGillivray.

“There are a number of things that go into creating a safety culture, and this is certainly an important part of it.”

Enform supports and promotes the highest health and safety standards in the upstream oil and gas industry, helping companies to achieve their safety goals by providing innovative training, certifications, services and resources. S

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Learn more about us at www.enform.ca

B.C. Oil & Gas Report • 2013

59

Have you considered an alternative safety approach?

I

nterest in BC Safety Authority’s new Alternative Safety Approaches (ASA) optional program continues to grow, especially in the oil and gas sector.

Applications have now been received from eight companies, and an additional 15 companies are in discussions with the BC Safety Authority (BCSA).

ASA was included in changes to the Safety Standards Act that were approved by the Provincial Government of British Columbia in 2010. The program gives owners and operators of regulated products an alternative method to prescriptive regulation to effectively manage safety. An ASA provides flexibility by treating safety as an integrated whole instead of simply complying with a series of prescriptive requirements.

An initiative with Shell Canada Limited on implementing an ASA option at all of their B.C. facilities is in the final stages of preparation. This has been a valuable exercise for both parties by enhancing understanding of what is required and ensuring that the product is practical and streamlined, while ensuring a level of safety equal to or better than prescriptive regulatory requirements.

60 B.C. Oil & Gas Report • 2013

According to Pearse Walsh, BCSA’s leader of business development, “An alternative safety approach is an opportunity for owners and operators to implement innovative safety practices, taking into account the individual characteristics of their operations to ensure a high level of safety performance.”

There are two options available under the ASA program: • Safety Management Plan: Applies to the safety of an entire facility and allows for significant substitution or equivalency to prescriptive regulations across one or more of the following technologies: boilers, pressure vessels, refrigeration, electrical and gas.

• Equivalent Standard Approach: Allows for limited equivalency or substitution of a regulation in one of the technologies noted above.

“We believe that ASA options improve a company’s safety culture, as those tasks that are most important to safe outcomes are emphasized,” says Walsh.

“In addition, integrating safety systems thinking into new projects at the design stage is a significant safety and valueadded opportunity. BCSA is planning to work with the design and engineering

teams on the proposed new liquefied natural gas (LNG) projects” The BC Safety Authority is confident that a number of companies will have new ASA options in place by the end of 2013.

“Safety management plans give companies an opportunity to take a performance-based approach towards safety compliance,” adds Walsh. “BCSA is using a robust auditing practice to support their process.”

For more information about the Alternative Safety Approaches program, visit the Permits section of our website at safetyauthority.ca or email asa@safetyauthority.ca.

The BC Safety Authority is an independent, self-funded organization mandated to oversee the safe installation and operation of technical systems and equipment.

In addition to issuing permits, licences and certificates, we work with industry to reduce safety risks through assessment, enforcement, research and education.

With our mission to build confidence in safety systems for life, through a focus on risk and support for innovation, we are achieving our vision of safe technical systems. Everywhere. S

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Fort St. John set to host the 2013 BC Energy Conference

O

ver 16 years ago, the City of Fort St. John partnered with the B.C. government to host the first Oil & Gas Symposium. This conference offered an opportunity for government to recognize the local energy industry and the significant role it has played in our communities in British Columbia. It has since been renamed the BC Energy Conference, recognizing the multiple types of industries related to energy in B.C., particularly in the northeast region. This annual event attracts politicians, regulators, and industry leaders to share valuable information.

At the close of the inaugural conference held in Fort St. John, a joint protocol agreement was signed between Fort St. John, Fort Nelson, and Dawson Creek to allow each community an opportunity to host. This year’s conference will take place in Fort St. John from October 1st to 3rd, 2013 at the Pomeroy Hotel.

As host of the 2013 Energy Conference, the “Energy Capital of B.C.”, as Fort St. John is known, has one big question for those attending the conference or who are thinking about attending –

Register for the 2013 BC Energy Conference at

www.bcenergyconference.ca.

62 B.C. Oil & Gas Report • 2013

“Are you energy literate?” This question is a call to action to those who are involved with, or affected in some way, by the discovery, production, shipping, and delivery of energy sources.

Not content to be the same old conference, this event offers an opportunity to bring together industry leaders, all levels of government, and academics to discuss the issues that really matter in the Canadian energy sector, especially in Northeastern B.C. The City of Fort St. John is committed to being a leader in energy literacy and hopes that other municipalities and industry partners will pursue the same goal.

Chair of the 2013 BC Energy Conference Trevor Bolin states, “Never before has the Fort St. John area been poised for the growth in the energy sector as it is right now. Fort St. John has been a hub for energy for the past five decades, but it is the coming decade that’s going to change everything we thought about energy.”

Whether you’re local government or industry, Bolin has this to say: “If you only book one event to attend this year, make sure it’s the 2013 BC Energy Conference hosted by the City of Fort St. John. You won’t regret it.”

The three-day conference opens with an optional tour of a working camp, followed by two action-packed

days covering hot topics such as the new types of applications for liquefied natural gas pipelines and the need for effective transportation options in the future, plus an update on the Site C project, BC Hydro’s proposed third dam and hydroelectric generating station on the Peace River in Northeast B.C. S

Advancing the interests of energy partners Don’t miss this must-attend conference about the British Columbia energy sector.

October 1-3, 2013 www.bcenergyconference.ca

B.C. Oil & Gas Report • 2013

63

Regional development in the Northern Rockies Laying the groundwork for success

Fort Nelson airport.

Photo by Chris Gale Northern Photography.

T

he Northern Rockies Regional Municipality (NRRM), provincial partners, industry, and Fort Nelson First Nation (FNFN) work diligently to ensure sustainable, balanced growth in British Columbia’s most northeastern region. Continual discoveries as a result of ongoing natural gas exploration, refinement of technologies in both upstream and downstream production, and momentum in the development of west coast liquefied natural gas (LNG) projects set the stage for continued growth in both the natural gas sector and the community. Canfor’s disposal of assets (two production facilities and equipment) in the Fort Nelson area have opened up opportunities for fresh investment, with a healthy and diverse wood supply to support any range of new operations.

Signing a memorandum of understanding (MOU) with the Province of British Columbia in 2012 solidified the commitment of provincial leadership to work with the NRRM to establish a mechanism for future infrastructure investment, akin to the Peace River District’s Fair Share Agreements. With Provincial land sales and royalties in excess of $3.5 billion from the Horn River, Liard, and Cordova Basins, the NRRM maintains that investment to aging infrastructure is essential to sustainable in64 B.C. Oil & Gas Report • 2013

dustry access and development, and not to be borne by the community alone.

A region of major natural gas supply to future LNG developments in Kitimat and Prince Rupert, Fort Nelson, and the NRRM sees 2013-2016 overall as a period of preparation. Forecasts for direct employment of future natural gas sector expansion show the potential for a workforce of up to 10,000 in the NRRM by 2020.

The Alaska Highway, combined with railhead access and regular scheduled and charter air service at the Northern Rockies Regional Airport (NRRA), makes Fort Nelson a natural transportation hub. Strategic business and capital planning of these methods of transportation (NRRA expansion, and the Alaska Highway Corridor Study) will ensure that development stays ahead of the curve.

In response to the development of shale gas resources and the steadfast growth of the service sector, new light-industrial lands are in the second phase of development. Two-hundred-and-fifty local, fully serviced acres are available for public ownership, accessed by an industrial traffic route off of the Alaska Highway.

To maintain focus on Fort Nelson’s sister industry, the Forestry Roundtable meets regularly to explore new options in our changing forest sector. FNFN and the

NRRM have agreed to pursue a community forest agreement, working together to establish a future community forest tenure.

Tourism in this incredible region also remains a force, being that the worldfamous Alaska Highway serves as Fort Nelson’s main street, and the globally significant 6.4-million-hectare Muskwa-Kechika wilderness lies in the backyard. The number of visitors to the area steadily climbs annually, as the desire to explore and experience the “true north” remains a motivational driver for many of those with time to spare.

Over 300 new businesses of all sizes have established themselves in Fort Nelson since 2009, with a continued expectation of the same growth through 2013 and beyond. Storefronts in retail, service-sector providers, corporate oil and gas drilling, completion and production services, and expansion of the accommodations sector, all show the value and measurable potential of the NRRM. Reaching the peak of business success is not a small feat: doing so in the Northern Rockies is well within reach.

For more information, contact Invest Northern Rockies: Email: ecdev@northernrockies.ca Tel: 250-774-2541 www.InvestNorthernRockies.ca S

In the hub with Mayor Lori Ackerman of Fort St. John

By Jillian Mitchell

M

any Canadians seeking adventure in Northern B.C. point their compasses to mile 47 of

the Alaskan Highway—only to find that the bustling town of Fort St. John might make for a perfect home base.

Touted as “The Energetic City”, Fort St. John has become synonymous with community spirit and opportunity. As the province’s oldest interior community, the city has established a solid communal foundation that has become increasingly attractive to industry in recent years.

Since 2011, Mayor Lori Ackerman has

Fort St. John City Hall.

provided leadership that’s committed to Fort St. John. Her active pursuit of economic development and financial stability for her city, as well as airport viability,

insight into the city’s ongoing popula-

The energy is the heartbeat of Fort St.

tion surge. Read on for the official scoop.

John—and that is its people. We work hard and play hard. Residents recognize

is a plight that well-resonates with the community she serves. Recently, Mayor

Fort St. John is known as The Energetic City.

the need to be a neighbour and a citizen.

Ackerman was kind enough to sit down

In what ways does this title best fit Fort St.

Fort St. John is filled with stories of those

with the B.C. Oil and Gas Report to share

John?

who have come north to kick-start or re-

66 B.C. Oil & Gas Report • 2013

start their careers for a couple of years and have stayed for decades.

Since its founding in 1794, Fort St. John has grown exponentially. What factors have attributed to this growth?

Our growth can be directly attributed to strong industries that spin off business opportunities.

What type of growth is anticipated in five years? 10 years?

All things remaining the same, we could see a further 13 per cent growth, and in 10 years, 27 per cent. This precludes projects that require Environmental Assessment Office (EAO) approval.

So should these be approved, the numbers will increase even more. The Site C Environmental Impact Statement states that this project alone would push up the anticipated community population growth by two years. We believe that is a very conservative number.

Referring to the above question, how does the oil and gas industry play into these numbers? Is the town actively trying to draw in the oil and gas industry?

These numbers are directly attached to industry. The city is the regional service centre in northeast B.C. and B.C.’s energy capital. With strong infrastructure, a strong financial position, good amenities, expanding air service and a competitive business environment, investors and site selectors recognize our community as a good location for long-term investment.

What sort of opportunities are there in the town for working professionals, particularly in the oil and gas industry?

The need for skilled labour has been an issue for many years. Professionals in all areas can find opportunities, health, social, environmental technologies, engineering, trades and hospitality.

What kind of infrastructure has been put in place to accommodate families?

Fort St. John has paved over 75 kilometres of roads, built over five kilometres of sidewalks, and created over 27 kilometres of trails since 2000. We continue to add to these each year. The Pomeroy Sport Centre is home to two NHL-sized rinks, a world-class speed skating oval, and a walking/running track. This facility is also home to the Pacific Sport Centre, a program to enhance our residents’ sport competency, and the Energetic Learning Campus, a partnership with School District 60 (Peace River North).

Mayor Ackerman, what was your motivation to run for mayor back in 2011? To date, what do you think has been your most notable accomplishment as mayor? And finally, are there any future plans for the city that you might share with our readers?

My motivation to run began in 2004.

At that time, my plan was for two terms on council then run for mayor. My three areas of focus were the same then as they are now:

1. Economic development: Council has resolved to move forward with an economic strategy that has a strong community focus with collaborative regional efforts.

2. Financial sustainability: We have created a benefit-based approach to dealing with city facilities and the fees and charges for use. Unless there is a referendum for special borrowing needs, we only borrow for water and sewer. Development Cost Charges have been implemented for future water and sewer infrastructure.

Council continues to support the policy that 97 to 97.5 per cent of the Fair Share dollars received are invested into infrastructure.

3. Viability of the airport: Recent changes to policy allow for renewed investment in capital programs to install and complete much-needed capital projects.

The community response to the “It Just Makes Sense” campaign was overwhelmingly successful and was a key factor in showing WestJet Encore that the North Peace Regional Airport (YXJ) should be a location for their regional airline. This announcement is without a doubt an indication that we are investment ready. S B.C. Oil & Gas Report • 2013

67

Emerging energy sector to enhance growth of Prince George economy

By Heather Oland, CEO of Initiatives Prince George

M

ore than $70 billion worth of resource, utility, and transportation projects are currently underway and planned in the northern part of British Columbia over the next 10 to 15 years. Central to this immense growth and opportunity is Prince George, a thriving city with a population of almost 80,000 that is the supply, service, transportation, health, education, and culture centre for the northern B.C. region in which 335,000 people live.

The energy sector is of increasing importance to the city’s economy, which is well diversified across a variety of sectors, including forestry, mining, manufacturing, construction, transportation, education, and healthcare. The B.C. government has committed to the development of the liquefied natural gas (LNG) sector and intends for the first LNG plant to be operational by 2015, with three LNG facilities up and running by 2020. The pipelines that are proposed to transport LNG to the ports of Kitimat will likely route through the Prince George region, which creates considerable opportunities for Prince George firms engaged in professional services, manufacturing and fabrication, construction, and transportation. In addition to the significant pipeline development opportunities, also possible is the transportation of LNG via rail from facilities in and around Prince George, creating opportunities for industrial land development, permanent job creation, and service and supply work in a variety of sectors.

The increased activity and revenue from the northern land base is leading to increased productivity in the design, construction, manufacturing, transportation, retail, health, education, and professional services sectors in Northern B.C. As Prince George is the supply and service hub for this economic activity, local firms are already supporting forestry and mining operations and are prepared to service the growing oil and gas sector.

The city is well connected to domestic and international markets through an international airport (YXS), the transcontinental CN Rail line, provincial Highways 16 and 97, and its proximity to the major west coast ports of Vancouver and Prince Rupert. In addition, the city also offers well planned and affordable light and heavy industrial lands, as well as a highly competitive tax climate. The increased activity in Northern B.C., as well as the superior transportation connectivity, skilled workforce, and health and education amenities in Prince George makes the city the preferred location for companies looking to establish or expand their operations.

Opportunity is in Prince George – we look forward to doing business with you.

For more information about investment opportunities, contact: Initiatives Prince George Economic Development Corporation info@initiativespg.com | www.investprincegeorge.ca S 68 B.C. Oil & Gas Report • 2013

Photo credit: Initiatives Prince George.

Photo credit: Initiatives Prince George.

Photo credit: College of New Caledonia.

PRINCE GEORGE. bRItIsh COlumbIa. CaNada GROWTH. OppORTuniTy. inVESTMEnT.

LIVE

Leading the Way for British Columbia PG Farmers Market – TourismPG

Home in Malaspina Ridge – InitiativesPG

Prince George, British Columbia has a growing economy that offers a diverse range of opportunities for new business investment. The energy sector is an increasingly important component of the city’s economy, enhancing Prince George’s role as the service and supply hub for one of the fastest-growing regions in Canada and making the city the preferred location for companies looking to invest or expand their operations.

Growth: River View at Fort George Park – City of PG

WORK + INVEST

University of Northern British Columbia

Tech Stop at PG Airport – InitiativesPG

PLAY

• The city’s superior transportation connectivity makes it the preferred location for companies looking to be a part of the $70 billion in resource projects underway and proposed in northern BC.

Opportunity: • Prince George is the northern centre for business, health, education, culture and shopping for BC.

Downtown Prince George – Capture PG

Welding – CapturePG

• Prince George has a population of almost 80,000 and is the service and supply hub for a growing region of about 335,000 people.

Container Loading at CN – InitiativesPG

• The city is well-connected to domestic and international markets through an international airport (YXS), the transcontinental CN Rail line, provincial Highways 16 and 97 and its proximity to major west coast ports.

• The Prince George economy is well-diversified across a variety of sectors, including energy, supplying goods and services throughout northern BC, Canada and the globe.

Investment: • A broad selection of competitively-priced commercial space is available in all areas of Prince George, with options to suit all types of business ventures.

Rainbow Dancers – Multicultural Heritage Society

Skijoring at Otway Nordic Ski – TourismPG

• Development cost charges in Prince George are among the lowest in BC and the City offers competitive tax rates for business and industry (starting at 16.28 per $1,000 of assessed value).

• Prince George is home to the University of Northern British Columbia and the College of New Caledonia, which provide a wide range of programming to facilitate the continuous development of the Prince George labour force to support business expansion across all industries.

www.investprincegeorge.ca Prince George Youth Soccer – TourismPG

Cougars WHL Hockey – TourismPG

For business inquiries, site selection services and additional information, contact: Initiatives Prince George Economic Development Corporation Tel: 250.564.0282 I info@initiativespg.com I www.initiativespg.com

/InitiativesPG @InitiativesPG /InitiativesPG

Photo by Brandon Braam.

Make your move to Tumbler Ridge

By Lindsey Wozniak, District of Tumbler Ridge

on the radar!

I

world-class dinosaur trackways. Add to that a network of over 300

Tumbler Ridge is a master-planned community that was cre-

kilometres of off-road vehicle routes and the most challenging

ated to house and retain a stable workforce for the Northeast B.C.

and scenic nine-hole golf course in northern B.C., and we have a

Coal Project in the 1980s. The original mines are now reclaimed,

lifestyle to be envious of.

but the northeast coal slopes are buzzing once again with two

Winter doesn’t keep us indoors either, we take advantage of the

new operating mines under expansion, plus additional mines

crisp mountain air, sunny skies and pristine landscape to get out

undergoing feasibility and permitting. The natural gas industry

and enjoy cross-country skiing, snowmobiling, snowshoeing, ice

in the area has grown year after year. Talks continue for two large

climbing, ice fishing, and more.

pipeline projects very near to Tumbler Ridge. With investigative-

The town site itself is reminiscent of a wilderness village resort

use permits issued for virtually every mountaintop, Tumbler

equipped with all possible recreational amenities, some of which

Ridge’s clean, renewable wind resources have proven to be a lu-

include a multi-million dollar community centre complete with

crative prospect for energy projects. It’s an investor and business

aquatic centre, gym, public library, full-size arena, and curling

owner’s dream! The services required to support these industries

rink. With accessible year-round recreational options for people

and the residents of the community are immense in numbers and

of all ages, interests and abilities; the possibilities are as diverse as

opportunities to get in on the action are limitless.

the landscapes in which they appear.

Aside from the business and employment opportunities avail-

Tumbler Ridge is thriving and aspires to be seen as a diverse

able in Tumbler Ridge, we are also known as the “waterfall capital

and sustainable community where life is as spectacular as its nat-

of the north”. Our famous Kinuseo Falls are a must-see on any-

ural surroundings. The community has proven that it is not going

one’s list. River-boating, canoeing, kayaking, fishing, swimming,

anywhere; now is the time to make your move to Tumbler Ridge!

and waterfall bagging—wherever there’s water, we’ve found a

For more information, please contact the community develop-

way to enjoy it. Forty-seven designated trails for hiking lead to

ment department at town hall at 250.242.4242, cdo@dtr.ca or

caves, fascinating geological formations, hidden waterfalls, and

visit www.InvestTumblerRidge.ca. S

f I had a dollar for every time I was asked “how are things in Tumbler Ridge these days,” I’d be a wealthy person. It seems wherever we go, people know about us. This is good! We are

PRESERVING LIFE, IMPROVING HEALTH & PROMOTING SAFETY

Tel: (250) 789-9061 Fax: (250) 789-9001 Cell: (250) 794-1978 lnsfirstaid@shaw.ca

Box 6339, Fort St. John, BC V1J 4H8 70 B.C. Oil & Gas Report • 2013

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Education program builds energy awareness among students and teachers Society of Petroleum Engineers

B

y the age of 17, many teenagers have made their most important decision to date. A choice that more than likely will affect the rest of their lives: they have selected a career.

Science, technology, engineering, and math (STEM) are among teenagers’ most popular career choices, according to a recent survey conducted by Junior Achievement, the world’s largest organization dedicated to educating students about workforce readiness.

This is encouraging news for the oil and gas industry, which is undergoing the “Great Crew Change”. However, if the industry is to reap the benefits of this trend, it must engage and educate tomorrow’s university students and future workforce about energy careers.

The Society of Petroleum Engineers (SPE) developed its Energy4me global energy education outreach program with that in mind. The program educates students, teachers, and the general public about how energy positively impacts everyday life, career opportunities, and factual resources.

“Many people in the public perceive the energy industry as complex,” says Sujata Bhatia, chairperson of the SPE Energy Information Committee. “Energy4me simplifies the learning curve, offering a way for the public to learn about energy sources, industry challenges, the technology used to develop resources, and ways we manage the safety, health, and environmental risks that goes with our business.”

Energy4me uses a three-pronged approach: the Energy4me website, teacher development, and speaker programs to spread its message. The website (www. energy4me.org) offers information on energy sources, challenges, technology, 72 B.C. Oil & Gas Report • 2013

conservation and sustainability, as well as environmental protection. There is also career information and a list of available scholarships.

Recognizing the role teachers play in educating young people about the importance of energy, the site’s classroom resources section provides educators with materials and activities, lesson plans, educational videos, and other resources. The printed materials are available in six languages.

SPE holds teacher workshops to provide educators with comprehensive, objective information about the scientific concepts of energy and its importance.

After reviewing his school’s curriculum for the first time, Tim Gordon, a Grade 9 math and science teacher in Calgary, learned he was tasked with teaching his students the truth about the oil and gas industry and energy alternatives.

“I feared I didn’t know enough about the topic to give an honest and thorough explanation to my students,” said

Gordon, who teaches at Ernest Morrow School.

He then received an email about an Energy4me Teacher Workshop held in conjunction with last year’s SPE Canadian Unconventional Resources Conference in Calgary.

“It was obvious the workshop was what I was looking for – a professional program run by industry experts and directed toward helping teachers maneuver through the nuances of the energy industry and what that means to our students and the world as a whole,” he said.

Gordon, who was among 35 educators who attended the workshop, says the Energy4me resources directly impacted his teaching practice.

“Without Energy4me, teachers would only see what is happening in the petroleum industry from the periphery – never truly understanding what diverse energy sources are,” he said. Another teacher workshop will be held at the SPE Unconventional Resources Conference

Canada in Calgary in November.

In addition to the Energy4me kit, SPE members volunteer their time to give classroom presentations to pre-university students. These presentations are an excellent way to provide students with facts about energy and inspire students to pursue energy sector careers. Energy4me offers ready-to-go PowerPoint presentations and fun activities that can be customized to give a local and personal perspective.

SPE also published Oil and Natural Gas, a colourful, hardcover book that tells the story of petroleum and how it shapes the world. Distributed to more than 3,000 teachers globally, the Energy4me materials and teacher workshops were developed in partnership with the National Energy Education Development Project.

To learn more about Energy4me or to volunteer, visit www.energy4me.org or call 403-237-5112. S B.C. Oil & Gas Report • 2013

73

Product enhancements in OGLs lead to increased protection for hoist gears

By Martin Keenan

O

il sands mining presents unique challenges when it comes to lubrication. With intense working conditions, severe temperatures, unpredictable weather, and unfavourable terrain, there is a constant need for the industry to go beyond today’s standards to protect the equipment that keeps operations alive. One company leading the charge in evolving protection is Petro-Canada Lubricants.

Facing expensive equipment wear In early 2010, Petro-Canada Lubricants, a division of Suncor Energy, was made aware of a mechanical issue with the hoist gear and pinions on electricpowered mining shovels operating in Western Canada. The gearing on these shovels was wearing out prematurely, requiring the early replacement of the hoist bull gears. This resulted in expensive replacement part costs and downtime for the shovel operator. After several visits to mining customers by Petro-Canada Lubricants technical services and R&D personnel, as well as consultation with an independent gear expert, it was decided that a new high-viscosity/high-performance lubricant for this application could address this issue.

Mining new solutions The grease development team at the Petro-Canada Lubricants Research and Development facility in Mississauga, Ontario was assigned to develop this new product. Work first concentrated on developing a new, partially synthetic high-viscosity base fluid to meet the requirements of AGMA 9005-E02, calling for a minimum viscosity of 6120 centistokes at 40° C and 219 centistokes at 100° C. This base fluid was combined with a suitable grease thickener and fortified with a unique combination of specialized additives to achieve the desired level of performance. In light of the issues realized in the field, special emphasis was placed on improving extreme pressure and anti-wear properties. Various formulations were produced and tested in the laboratory to confirm that the necessary level of performance was attained.

After development was complete and the new product had been manufactured for the first time, the Petro-Canada Lubricants Research and Development group worked together with technical services and sales representatives in the field to oversee the initial trial of the new product (Petro-Canada VULTREX™ OGL Heavy 6200) at a mining customer. Modifications were

74 B.C. Oil & Gas Report • 2013

Premature wear in Hoist Gear teeth surfaces.

made to the shovel’s grease delivery system as directed by PetroCanada’s shovel technical expert, and then the new product was applied for the first time.

Advanced performance results The results of the initial trial were excellent, with the new product demonstrating the necessary performance on the hoist gear and pinions over the long term. Compared to the previous product that was used in this application, Petro-Canada VULTREX OGL Heavy 6200 showed improved adhesion to the gear face, resulting in less lubricant fling off from the gear and pinions. This resulted in a thicker, tenacious, plated lubricant film across the entire loaded side of the hoist gear. Another benefit of the conversion was reduced lubricant consumption, and less lubricant buildup under the hoist gear cavity. Based on the performance at the initial trial site, Petro-Canada VULTREX OGL Heavy 6200 was rolled out to similar equipment at many mine sites in Canada, where it has worked effectively under a wide range of operating conditions.

As a result of this co-operative development effort between Petro-Canada Lubricants and a mine in Western Canada, PetroCanada Lubricants now has a superior open gear lubricant for the hoist gear and pinions on electric mining shovels. It is also suitable for use as an open gear lubricant for all requirements on mining shovels in warmer climates.

Martin Keenan is a product specialist on Petro-Canada Lubricant’s research & development team. S

Supporting LNG development

By NOV Wilson Business Development Group

W

ith conventional gas development on the decline or uncertain based upon cur-

rent economic conditions, LNG development represents a very positive opportunity for industry producers to establish solid long-term capital investment plans. While some of the comparatives to the development of oil sands in Fort McMurray are positive in nature, risks associated with cost escalation and project overruns are not characteristics LNG investors are eager to experience.

NOV Wilson plays an integral role in production development plans by supporting new construction and long-term maintenance of new pipelines and facilities. NOV Wilson has expanded on the typical definition of material supply/

solution provider with respect to project

surplus distribution, and relationship

supplier and has built a reputation as a

planning, sourcing, expediting, delivery,

management.

76 B.C. Oil & Gas Report • 2013

LNG projects involve a large number of EPCM firms, fabrication contractors, and end-user stakeholders who all influence decisions on when, where, and how much material is required to meet development plans. NOV Wilson has established experienced, dedicated teams to work on these projects with our customers. Knowledge, experience, and relationships are critical to integrate communication and expectations for all of the stakeholders from planning through project execution.

Once build-out is completed, customer relationship management and service support is provided through the NOV Wilson network of branch locations. While most oilfield service companies have focused upon the gathering systems in the Peace Region of British Columbia, in addition to this important region, NOV Wilson has a longestablished network of locations to support existing pipeline, mining, and industrial markets.

NOV Wilson branch locations provide frontline support to manage product requirements where and when materials and service are required. Employees enjoy a learning atmosphere to support continuous improvement and a safe work environment. These traits are essential elements to sustain service and supply commitments throughout all field operations for the long term.

Given the anticipated rapid pace of development, companies like NOV Wilson must engender a strong culture to support these operating values and maintain safe growth.

Service of gas facilities and midstream markets remain a core competency for NOV Wilson operations in B.C. Superior products, project execution experience, and a strong branch network help our customers reduce the many risks associated with their new development plans and ongoing maintenance.

Through NOV Wilson history, the

company has grown by operating where our customers operate and by servicing what we sell. As LNG continues to solidify a path for future development in

service capabilities in British Columbia, please call 403-531-5600, or visit our website at: www.nov.com.

B.C., NOV Wilson is committed to support plans with additional infrastructure, jobs and solutions for this important resource.

To learn more about NOV Wilson

For more information about NOV Wilson’s LNG development, please contact Dave Wallace at 250-785-5622. S

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B.C. Oil & Gas Report • 2013

77

New “TILT” desanders deliver improved efficiency

By Craig McDonald P.Eng., manager of technical services for Specialized Tech Inc.

S

pecialized Tech Inc.’s exclusive focus is on providing engineered solutions for the removal of sand and particulate matter from produced well fluids. With hallmarks of simplicity and reliability, industry acceptance of its multi-phase desanding equipment has fuelled rapid expansion of the company’s fleet of patented equipment, with pressure ratings ranging from 9,930 kPa (1,440 psig) to 41,370 kPa (6,000 psig).

Effective at removing sand, without a pressure drop, is just one of the benefits that alternative methods cannot deliver.

By temporarily separating the multiphase flow into a stratified, laminar flow regime, gravity is able to effectively separate the sand from the fluid flow of gas, condensate (or oil), and water.

Separated sand collects in the desander, leaving a fluid discharge stream that can pass through chokes, valves, and process equipment with lower risks of erosion and equipment damage.

STI’s desanding equipment has evolved continuously since its introduction to the Western Canadian market in 2001. Larger units, with larger sand capacities and higher pressure ratings are now available to meet the increasing needs of the market. STI’s fleet of desanders has doubled over the past few years, primarily in response to the popularity of drilling horizontal, multistage stimulated, liquids-rich gas wells.

This trend is expected to continue and will support further growth of the company.

Installed at the well site, STI desanders remove fracturing proppants and produced sands from the produced fluids to prevent erosional damage to downstream assets, ultimately preventing uncontrolled or accidental releases of hydrocarbons. The typical criteria for

78 B.C. Oil & Gas Report • 2013

sizing of the desander is to achieve 95 to 98 per cent removal of all particulate matter greater than or equal to 150 microns in diameter. With lower velocities, particles as small as 60 microns may be removed without requiring any filter media. STI engineers design each installation to ensure the chosen desander model provides optimum performance.

With particulates removed from the multi-phase fluid stream, recombined fluids leaving the desander are ready to feed into the gathering infrastructure under pressure. The gas component of production does not need to be flared in order to remove sand, yielding higher revenues for the producer, as well as avoiding regulatory compliance issues.

Wells can be put on production sooner, immediately following testing, without concerns about equipment damage, disturbance to the environment or nearby landowners, especially at sites where production contains hydrogen sulphide (H2S) gas.

Unlike cyclonic sand separators, the physics that allow STI’s desanders to work is not dependent upon constant flowrates. This means that a desander is sized to work initially with high initial potential flows and remains effective as the formation pressure drops. Importantly, a decrease in flowing pressure in gas wells actually results in higher gas phase velocities as production continues, and this is taken into account when sizing the desander. For wells with continuing sand production, it is not uncommon for the desander to be on the well for years as opposed to the initial three to four months of production when flow rates are at their highest.

Now Specialized Tech Inc. introduces its new, patented TILT desander, with increased sand removal efficiency. The TILT desander features a modified geometry that, as the name suggests, incorporates an angled vessel. Computer modeling has determined that the TILT models offer increased operating effi-

ciency. Supported by more than 15,000 unit-months of desanding service experience, the proprietary engineering design software used to model desander performance has been validated and calibrated, ensuring that the STI-recommended desander employed will perform reliably throughout the expected range of operating conditions.

The first TILT desander to enter service is an ANSI 1500 class unit, fully NACE-compliant for use in sour service, and completely compatible with STI’s web-based Sand Sentry monitoring system. Designs for ANSI 600 and 2500 class units, with diameters of 20 and 24 inches, are complete, and several larger, higher-pressure units are scheduled to enter service by yearend.

“With their improved performance, STI anticipates that its future fleet will predominantly be TILT desanders,” says Chris Hemstock, president of STI Technologies, Inc. Every unit is built to strict quality and engineering specifications, in accordance with ASME Section VIII, Div. 1 code. Several units are National Board certified for use internationally. STI is an ABSA-registered owner-operator with its own, proprietary pressure equipment integrity management system.

“Becoming a registered owner-operator was an important strategic step for STI,” says Hemstock, adding, “as a service provider, we manage field and administrative tasks to ensure regulatory compliance for all of the company’s temporarily-installed, pressure-containing equipment. We are committed to providing these services to facilitate safe, effective and reliable operations to our customers.”

FEATURES • Pressure ratings: 9,930 to 41,370 kPa • Temperature ratings: – 29 °C & -45 °C • ASME Section VIII, div. 1 ABSA registered

• NACE MR0175 for sour service • No pressure drop • No emissions • Minimal service/clean-out time • Eliminates flaring • Removes sand and other particulates, such as asphalts and free precipitants • Early production • Frac sand clean up

• No freezing issues • ABSA Pressure Equipment Integrity Management System (PEIMS) For more information, please contact: Specialized Tech Inc. Gas Well Desanding Services www.specializedtech.ca info@specializedtech.ca S

SPECIALIZED TECH INC. has provided an engineered solution associated with sand production in High pressure gas wells since 2001. With STI’s equipment gas well operators save money and keep their wells producing no matter how challenging the conditions.

STIinformation@specializedtech.ca Head Office in Calgary, Alberta ....................................(403) 233-2040 Field Offices in Three Hills, Alberta ..............................(403) 443-5453 Grande Prairie, Alberta ................................................(780) 897-8140 Fort St. John, B.C. ........................................................(250) 793-5140

B.C. Oil & Gas Report • 2013

79

Gas Field Innovators brings life to tired oil and gas wells

By Mike Downey

G

as Field Innovators Inc. (GFI) of Linden, Alberta, Canada, started building booster natural gas compressors in 1997 to take advantage of the opportu-

nity for increasing the economics of the large and aging developed oil and gas reserves in Western Canada.

“Cost-effective production from low-productivity oil and gas wells has always been challenging,” says Fred Majocha, owner of GFI. “Accepting this challenge, GFI developed the Gas Hog as a booster for pressure-depleted oil and gas wells.

Acceptance of the product in Canada has been very high, now with more than 120 units in service.”

“Locally Owned Company Specializing in Contaminated Soil Transfer” • 6, 7, 8 axle sealed end dumps • COR certified • Large stockpiles of sawdust and peat moss located in Fort Nelson, B.C. Ph: (250) 500-3478 Fax: (250) 774-3777 80 B.C. Oil & Gas Report • 2013

www.muskwavalleyventures.ca info@muskwavalleyventures.ca

Intensive design analysis based on field information carried out at GFI’s Linden fabrication shop has resulted in a slowspeed, reliable, very quiet reciprocating compressor and surface liquid pump. It also has a hydraulic drive and subsurface lift assist combination option. The objective was to economically reduce formation-flowing pressures by reducing surface-flowing pressure and minimizing liquid buildup in the wellbore.

The Gas Hog compresses sweet or slightly sour natural gas and reliably pumps surface liquids against pipeline pressure.

This reduces liquid-related multi-well header or other flow-line back pressures that restrict gas and oil production from the wells. The Gas Hog units have been designed to operate under very adverse inlet gas quality conditions while still requiring minimal maintenance and operator attention. They are also well suited to cold climates, with the engine and compressor capable of starting without pre-heating. Routine maintenance for the Gas Hog consists of once-a-month greasing of a few bearings and replacing the engine oil filter. No oil changes are required.

The Gas Hog can be configured to act as its own complete separation and measurement facility and also be capable of supplying hydraulic or jet pump power for artificial lift. Discharged high-pressure gas can also be recycled to optimize well flow velocity. The Gas Hog is designed to work with a variety of

well optimization subsurface lift systems. Packages come fully enclosed and include secondary containment.

The Gas Hog’s “pump jack” analogous long stroke/slow speed compressor is GFI’s own design with all manufacture and assembly done at the company’s fabrication facility in Alberta.

The Gas Hog can operate up to a discharge pressure of 17.2 bar with a volume throughput of 45,300-square-metres a day and down to a suction pressure near zero with liquid pump rates up to 60 litres per minute.

A battery-powered PLC panel provides industry standard controls for the package. Battery charging is provided by the gas-fuelled driver. Standard units are self-sufficient and require no external electrical power.

A recent study showed that the cost to operate a Gas Hog was about 50 per cent less than that of an equivalent screw compressor and with much less operator attention. Operating availability time was in the 95 per cent range.

The low-operating cost, SCADA readiness, and high reliability are qualities the Gas Hog offers that make it suitable for long-life reserve applications, such as coalbed methane (CBM), multi-oil/gas well headers, and long reserve life wellhead pressure boosters.

GFI

Innovators

Gas Field

Each compressor meets all Canadian government regulations and is fully tested before shipment. GFI services what it sells or rents. Compliance with other international standards is also possible.

GFI’s service technicians and engineers have many years of experience with well surface and down hole problem analysis and are ready to assist with any production challenges. GFI’s manufacturing facility can often provide previously tested solutions, as well as having the capability to design solutions for specific needs. GFI will work with clients to find a way to optimize production and maximize return from troublesome oil and gas wells.

To meet the next challenge of expanding the market for the Gas Hog, GFI is very pleased to announce the appointment of BSS (Beijing) Petro-Chemical Equipment Co. Ltd. as the exclusive representative for Gas Hog compressors in Asia and Australia. BSS is a company well known for manufacturing a wide range of quality equipment for the oil and gas industry, and is well placed to take the Gas Hog to these new markets.

Mike Downey is the general manager at Gas Field Innovators. S

817 Central Avenue West, Linden, Alberta

Ph: 403-546-0011 | Fax: 403-546-0012 Check us out at www.GasFieldinnovators.ca Contact us at gfi@gasfieldinnovators.ca

High pipeline pressure at your multi-well header an issue?

Slightly sour production handling cost prohibitive in your tired wells?

Down hole liquid loading or causing back pressure a problem in your oil wells?

We put the run on high operating cost and down time with GAS HOG! • Reliable under the worst Canadian conditions • Extremely quiet and Landowner Friendly • Low Maintenance and Operator Friendly • Ideal for long life reserves applications • Reliably pump surface liquids with the gas • Power subsurface artificial lift GAS HOG! Give those tired old wells a snort with the Hog!

• Operates as a complete production facility.

GFI’s 30,000 sq ft fabrication shop is ready to assist with your specialized needs B.C. Oil & Gas Report • 2013

81

GPEC – Supplying today’s environment for tomorrow

A

s a Canadian owned and operated company, Green Patch Environmental Consulting Ltd. (GPEC) prides itself on supplying the energy, mining, erosion control,

GPEC has solutions to ensure the ability to: • Surpass regulatory compliance • Quickly establish vegetation

construction, and reclamation industries with a variety of prod-

• Achieve superior on-site erosion control management

ucts, ideas, and solutions. Our goal is to provide peace of mind

• Reduce risk of remote fires from straw mulching

for all your needs when you need it, with the right products for the job every time.

GPEC’s knowledge and history speaks for itself. We work relentlessly with our manufacturers to bring you the newest and innovative solutions that help you get the job done right. Whatever the job may be, or whatever the industry may be, GPEC has a solution for you.

Oil and gas projects Pipeline and right-of-way projects are some of the most difficult projects to complete. Regulations regarding construction, storm water compliance, and final approval are changing rapidly. Projects are intensely scrutinized.

82 B.C. Oil & Gas Report • 2013

• Utilize environmentally friendly products and practices • Drive efficiency because “time is money” and you must get it right the first time

Our products and technologies lessen the environmental impact of any construction project by protecting surface and ground water, and by minimizing the need to mine, process, and handle natural aggregate and fill materials.

GPEC supplies:

Riverbank restore.

• Geotextiles • Geogrids • Geomembranes • Native grass seeds and soil amendments • Erosion control products • Sediment control products • Drainage products • Paving products • Landscaping products • Wall and slope products Since GPEC’s inception, we have added additional locations. Our products and services fall into five key industries: energy, mining, erosion and sediment control, construction,

staff. GPEC delivers the products, technologies and support

reclamation and containment. GPEC has a long-standing

that give clients a key advantage with an added environmental

commitment to the environment, with our highly qualified

benefit.S

Visit us online at gpec.ca.

Or give us a call at 1-888-550-9188.

GREEN PATCH ENVIRONMENTAL CONSULTING LTD. SUPPLYING TODAYS ENVIRONMENT FOR TOMORROW

OFFICES IN EDMONTON & CALGARY

TOLL FREE: 888-550-9188 FAX: 866-394-8145 EMAIL: SHAUN@GPEC.CA KEN@GPEC.CA

ENERGY CONSTRUCTION EROSION CONTROL MINING RECLAMATION CONTAINMENT

www.GPEC.ca B.C. Oil & Gas Report • 2013

83

Prince George company expanding into the Peace area

By Rita Wiebe, Alliance Group of Companies

T

imes are changing and collaboration is one of the latest, most powerful action strategies. Col-

that it was a commonality to most in-

the owners a call to explore corporate

dustrial resource sectors. This idea spear-

possibilities and investment options.

headed further growth, and company

In the Peace area of Western Canada,

laboration produces a special energy

owners Dan Schreiner and Peter Dawley

administered from the Prince George

commonly known as synergy. It is where

have not looked back.

base are two such companies from the

a group of non-competitors pool their

Scott Everall, manager of business de-

Alliance group. The first is Blackridge In-

resources towards a collective vision to

velopment services explains Apex Indus-

dustrial Services located in Taylor, B.C.,

produce a desired outcome or goal.

trial Solutions as the primary overseer of

which has access to fabrication and me-

One such company that facilitates

“designing, building and maintaining”

chanical resources pertinent to industry

this type of relationship is the Alliance

your industrial projects. He stresses the

in the area. The other company, Apex

Group of Companies, headquartered

importance of being sure that the entire

Industrial Solutions now located in both

out of Prince George. They, in essence

quote is being accommodated, right on

Grand Prairie and Prince George, is ac-

are a group of non-competing industri-

through to the earplugs and other inci-

tively designing, building, and maintain-

al-related businesses providing resource

dentals. With emphasis on corporate

ing industrial projects for all resource in-

services for the primary Apex Industrial

open-mindedness and possibility think-

dustries.

Solutions Inc. The Alliance group origi-

ing, Everall encourages further corporate

To date, the Alliance Group of Com-

nated with a basic machine shop many

relationship building and invites CEOs

panies includes a variety of industrial

years ago where the owners recognized

and management to give him, or one of

services and is not limited to oil, gas, mining, pulp and paper sectors, to name a few. The corporate administration of-

Serving The Oil And Gas Industry For More Than 20 Years

fice is located in Prince George, B.C.,

www.eos1990.com

at www.niraresources.com, or by calling

and contact information can be found the central office at 1-800-539-3492. S

Certificate of Recognition Experts Industry Specific COR/SECOR Safety Programs/Manuals

}

CORPORATE HEAD OFFICE 9606C 100th St Peace River, AB T8S 1M6 Phone: 780-624-5217 Fax: 780-624-5962

}

CORPORATE SERVICE/ SALES OFFICE 1205, 736 6th Ave SW Calgary, AB T2P 3T7 Phone: 403-232-8200

} FORT NELSON

Box 58, 4803-48th Avenue Fort Nelson, BC V0C 1R0 Phone: 250-774-9951 Fax: 250-774-9954

OTHER DISTRICT OFFICES: Red Earth Creek, AB | High Level, AB | Shaunavon, SK | Norman Wells, NT AlAnA TurcoTTe, VP Business Development and Sales | Direct: (403) 268-9637

84 B.C. Oil & Gas Report • 2013

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q m a t. c o m

Performance under pressure

By Lacey Beaumont

Caliber Hot Oiler.

C

aliber Oilfield and Production Services Inc. is a locally owned and operated company based in Fort St. John, the heart of Northeast B.C.’s oil and gas industry. Caliber offers hot oiling and pressure truck services, backed with 35 years of experience.

Owner and CEO Murray McClelland is no stranger to the trials, tribulations, and eventual success associated with this type of business. After 15 years as an owner-operator, McClelland saw an opportunity and seized it. Starting Caliber with just one tandem hot oiler, he would grow the fleet to open up shop at the current location in the summer of 2008. Today Caliber operates with three hot oiler units, two 10K pressure trucks, and new to the fleet this past June, a twin heating unit. Also coming in the

86 B.C. Oil & Gas Report • 2013

fall will be their first 20K low-rate highpressure unit and 1,000-horsepower pumping unit. Complementary to the fleet, Caliber also maintains a six-man shower unit for companies to ensure safety precautions are in place.

Caliber sets the industry benchmark with continued innovation. Their inhouse designs are application-specific incorporating the latest developments in technology and build materials. In 2010, Caliber achieved recognition on a provincial level, with Sci-Tech North nominating the company for a technological innovation award. In conjunction with this nomination, the thenminister of Small Business, Technology, and Economic Development, Ian Black toured the facilities and equipment, commending Caliber on their progress

within the industry. Caliber is community minded and focused on creating opportunity in business, for itself and local entrepreneurs. The majority of equipment development and construction is completed locally, contributing to local job markets and economy.

When it comes to employee loyalty, Caliber is second to none in their industry. This is reflected during day-today operations, whether in the field, shop or office. Mentoring has always been a must, right from McClelland’s first hire, which has led to a strong program of operators having the right combination of practical and theoretical knowledge. This has resulted in a team that can expertly and efficiently meet client expectations, develop strategy in a new environment, as well as

adapt to and master a less than ideal situation. In today’s strained job market, Caliber has chosen to recruit and develop employees organically. Due to this process, all operators are highly qualified and consistently expanding their knowledge with the developing industry. Caliber ensures that their clients receive the best personnel for the job, while supporting the local labour pool.

The Caliber team is proud of the products and services they offer to an ever-changing and fast-paced industry, as well as their contribution to the growth and prosperity of the community within which they live.

To visit Caliber online, check out www. caliberoilfield.com. Email inquiries may be directed to info@caliberoilfield.com, and telephone inquiries can be made to 1-855-785-3772. S

Caliber six-man shower unit.

9312 - 111 St., Fort St. John, BC V1J 7J5 info@caliberoilfield.com

“The best quality equipment performed by the best professionals in the industry”

Hot Oiling | Volume Fluid Heating | High Pressure Pumping Chemical-Acid Pumping

Performance Under Pressure Ph: 250.785.3772 | Fax: 250.785.3776 | wwwcaliberoilfield.com B.C. Oil & Gas Report • 2013

87

A dream becoming a reality

Braving the elements en route to Milepost 16.1. Spectra Mainline, Stewart Lake area, B.C.

W

ith one box truck and one pickup in which to provide pilot car and light hotshot services, Jesse Forrester embarked on his dream of being self-employed. The result was locally owned and operated Swift Specialty Services Ltd., founded in 2010.

Forrester’s entrepreneurial drive was instilled throughout his childhood as he watched his parents persevere and thrive as small business owners in the thendeveloping Boundary Lake Oilfield, located 60 kilometres northeast of Fort St. John, B.C., around the small town of Goodlow.

“I saw how much work it was for them, as well as the daily dedication that was involved,” recalls Forrester of his parents’ vocation. “I also recognized that the rewards for the unfaltering effort were great.”

Two is stronger than one.

Praxair, your Welding & Gas Supplier offers more than just gases, equipment, consumables, safety products or accessories – Praxair offers ideas and innovation. Our broad range of solutions aim to save our customers time and money.

Compass Bending has doubled in size to serve you better

Praxair has the presence, products and industry leading expertise to be your prime supplier along with e-commerce capabilities that make it easy for you to do business. Finding our customers the best solutions to their problems; saving customers time; thereby making our customers more profitable.

We have doubled in size to provide our customers the highest possible level of quality and service.

Additional Services:

• Insulation, taping and coating, including YJ bends • 3D and 5D bends • 10” and 12” bends • Structural Bending

Toll Free: 1.800.225.8247 Experience, Quality & Service.

CompassBending.com 7320 30 Street S.E. Calgary, Alberta T2C 1W2 • Phone: (403) 279-6615 • Fax: (403) 236-4249 • Toll free: (800) 708-7453

88 B.C. Oil & Gas Report • 2013

1601 Central Street, Prince George 527A South Mackenzie Avenue, Williams Lake 4751 Highway 16 West, Terrace 139 George Hills Way, Prince Rupert 1500 Alaska Avenue, Dawson Creek 101-10331 Alaska Road, Fort St. John

| | | | | |

250.563.3641 250.392.3112 250.635.1277 250.624.4301 250.782.8280 250.262.0047

As Swift’s customer base increased, so too did the need for additional equipment. As the owner-operator reiterates, positive, yet sustainable growth, had to be achieved. With that, a Ford F-550 deck truck with a 60 series hiab was bought so as to be more versatile as a pilot and hotshot service provider.

At this time, the need for oilfield fencing contractors in the north became apparent. Operating on the belief that proficient diversity is key, Swift’s fencing division was formed.

With a pilot and hotshot division, box truck services, and fencing division now operating daily, there was an immediate need for more trucks—two more pickups and another Ford F-550 again with a 60 series hiab were soon added to the roster.

only a paycheque for employees, but

With a proven track record and a steadily growing customer base, Forrester’s focus became attracting and acquiring employees with the training, knowledge, skills, and will to provide the highest quality of service each and every day.

“Providing skilled workers to customers everyday may very well be the biggest obstacle to overcome for business owners in the north and all of B.C.,” says the business owner. “In an effort to be proactive, I asked—and really listened—to what employees and prospective employees wanted and needed to make long-term commitment decisions to the Swift team. What I consistently heard was competitive wages, benefits, employer respect for scheduled time off, and short notice family commitments. Hearing this, I decided that I wasn’t going to provide

p 56 RR1 |

Site 5 Com

a rewarding way of life for them and their families.”

Heading into the winter, Swift Specialty Services Ltd. is very excited to provide pilot and hotshot services, box truck services, as well as all oilfield fencing services to the oil and gas producers of British Columbia.

“We promise to continue our hard work and highest quality of service,” Forrester concludes, “as well as to keep an open, diverse mind to the ever-changing needs and services of our local producers in order to remain world-leading in this industry as we are today.”

For more information, please contact Swift Specialty Services Ltd. at: 250-264-8960 (c); 250-785-2785 (w); sss.ltd@telus.net. S

J 4M6

hn, BC V1

Fort St. Jo tn. Main |

S

Jesse Forrester - Owner/Operator Specializing In: Pilot & Hotshot Chainlink Fencing (Installation & Repair) Supervision Security

Equipment: Pilot Cars/ Pickups Pickers Box Trucks

Email: sss.ltd@telus.net Cell: 250-264-8960 | Office: 250-785-2785 B.C. Oil & Gas Report • 2013

89

Like their structures, family-owned Calhoun Super Structure continues to grow and expand

W

ith over 20 years in the fabric-building industry, the Calhoun family utilizes their time-tested experience and knowledge in the industry to provide innovative structural solutions and expand their Calhoun Super Structures into many different markets. Confidence in their product, engineering, and dealer network has been the driving force behind this family-owned company, which is now into its second generation.

What started as a small tarp business on their family farm in Ontario, Leonard Calhoun, along with his sons Jeremy and Sean, began selling and installing fabric structures to the agriculture industry. Seeing a need for their structures

in other markets, the company expanded to include three different building profiles, a manufacturing plant, and a strong dealer network to sell and install their structures. With its roots in the agriculture industry, the company has moved into more commercial and industrial markets, from commodity storage to warehousing. The demand for their Canadian-made fully engineered structures in the Canadian oil and gas industry has seen a large growth in the last few years, and with the expansion of their dealer network, Calhoun Super Structures has the ability to provide local service to these industries.

Engineered for the Canadian climate, the hot dip galvanized steel framework

of a Calhoun Super Structure provides superior protection and durability in any environment. With the natural light of a fabric cover and a free-span truss system, a Calhoun Super Structure can help to lower your energy consumption and increase your storage capacity. For a multitude of applications, a Calhoun Super Structure can provide a customized and cost-effective solution for all your storage needs.

Taking pride in ownership and knowing that their family name is on every building that they manufacture and sell, Calhoun have made it their personal mission to ensure that each building is engineered to be the strongest, most reliable product on the market. Calhoun

Progress Energy Canada Ltd., a leader in Canadian natural gas development for North America, is pioneering new infrastructure for delivering liquefied natural gas (LNG) to Pacific Rim markets. Progress is owned by PETRONAS of Malaysia, which is planning a world-scale LNG export facility – Pacific NorthWest LNG, on Canada’s West Coast, near Prince Rupert, British Columbia. Progress and Pacific NorthWest LNG are helping craft a bright new future for Canada’s energy exports.

ProgressEnergy.com

Progress ad may 6.indd 1

90 B.C. Oil & Gas Report • 2013

Canadian EnErgy. global rEaCh. 2013-05-06 12:30 PM

uses cutting-edge technology to engineer your fabric tension building to your exact site loads, use and application. Being one of the only names in the industry to utilize 3D Finite Element Non-Linear Analysis on each and every building, Calhoun can ensure the integrity of your structure right down to the size of a pinhead. Knowing that each building is engineered and manufactured using the most precise technology allows the Calhoun family to pursue new and innovative markets for their structures.

Aware of how important it is to have someone beside you every step of the way, from the initial concept and design to installation and completion, Calhoun Super Structure has enlisted a dedicated dealer network to provide service throughout your entire project. From the very beginning, the Calhoun family has focused on providing exceptional cus-

tomer service to each and every client,

strength is in their structure, not just the

and expects nothing less from their deal-

structure of their engineered buildings,

ers. Having a local dealer assist in all as-

but the structure of their company, their

pects of the project and provide personal

employees and their dealers. Confidence

service to the customer is important to the Calhoun family and has been the backbone of the company since the very beginning. Their dealer network is an extension of the family business, and like a family, Calhoun provide assistance and

in their products and their company allows the Calhoun family peace of mind knowing that they can provide the most reliable structure on the market, after all, their family name is on each and every

support to each and every one of their

one of their buildings they manufacture

dealers.

and sell!

As the Calhoun family continues to

To find a local Calhoun dealer near

expand, so does their company. Their

you, go to www.calhoun.ca. S

See the Calhoun Difference!

• Hot Dip Galvanized • Naturally Bright, Free Span Interior • Proven Site Specific Engineering • Lower Operational Costs • Quick Installation • Storage Solutions Customized For Your Industry and Location Let a Calhoun Dealer assist you throughout your entire project!

Call or find us Online!

www.calhoun.ca 1.800.265.3994 info@calhoun.ca B.C. Oil & Gas Report • 2013

91

Western Canada’s oil + gas communications experts TOG Systems

T

here’s no such thing as nine-to-five in the oil and gas industry, and no service company knows that better than TOG Systems. In its 11th year of operation, TOG provides remote communications solutions and products to the oil and gas industry throughout British Columbia, Alberta, and Saskatchewan.

Companies in this sector have grown to trust and rely on TOG when it comes to getting a remote site or rig connected in a timely and safe manner.

Taking remote communications to new heights TOG supplies and services the latest in communications equipment including satellite, cellular and Internet services, portable towers, rig phones, radios, and computer or camp packages. If there is a communications need the current equipment doesn’t solve, TOG partners with manufacturers or suppliers to develop and build a custom solution ensuring that their customers get the right solution for their unique needs…and this is really where TOG stands apart from their competitors. This focus on research and development keeps TOG on 92 B.C. Oil & Gas Report • 2013

the front line and drives them to create new industry standards.

“We take the time to innovate and we are committed to investing in the future of this industry. All of our clients have unique needs and when presented with a new challenge, we go out and search the globe for products – and if doesn’t exist, well, then we create it,” says Diane Nordhagen, CEO of TOG Systems.

Service you can count on Employees are considered TOG’s biggest assets, and over the years management has built up a team of specialists in all fields from health and safety to field technicians. Each person brings a unique skill set that contributes to the success of the company and helps position them as one of the top remote communications companies in Western Canada.

“We really nurture long-term relationships both within our company and with our customers,” Nordhagen says, noting this is a key part of TOG’s philosophy. “We invest in people and when we receive feedback from customers about our exceptional staff and service – we consider the job well done.”

TOG’s network management One of the key foundations in remote communications is to have solid, reliable equipment that will operate under challenging conditions and to keep that equipment operating smoothly despite the many complications that may be caused by both man and nature. TOG delivers a level of service and throughput that gives remote sites the ability to function like an office in any city.

By investing in building systems that provide premium services and utilizing industry-leading hardware and software, TOG can remotely manage and maintain a site. This degree of control gives TOG complete network visibility with diagnostic tools to flag and resolve potential issues before they become a problem. Their latest systems with dual sources of Internet are networked seamlessly on sites allowing a level of redundancy and assurance that critical sites require.

For more information on TOG Systems, or to sign up for their email newsletter, go to togsystems.ca. Call 780-356-3965 for a quote or immediate service. S

Homegrown

Modular Solutions

At Williams Scotsman of Canada, we’re proud of the work we do. Our talented team of experts understands the specific challenges of each unique region of our country because our knowledge and expertise is homegrown. From the harshest, most remote locations, to the heart of major cities and everywhere in between, our design professionals have the local experience necessary to work with you to combine functionality, innovative technology, and intelligent design to satisfy your every need.

Whether your project requires a temporary or permanent facility, for a few workers to several thousand, we can design and customize a modular solution that supports your company goals. Fast, functional, flexible solutions that are as hard working as the country they serve.

• Administrative offices • Bunkhouses • Kitchen and dining facilities • Recreation complexes

• Washcars and water storage units • VIP staff quarters • Conference rooms • Command and security centers

800.782.1500 www.willscot.ca

Modular construction a key solution in overcoming project issues

T

he use of modular construction has never been more prevalent in the construction industry because it addresses many of the major issues that are faced while

implementing large projects, such as those proposed in British Columbia. These issues can include limited access to remote areas, aggressive construction schedules, severe site weather conditions, limited local availability of labour, and adherence to high quality and safety standards.

Sarens, a global leader in heavy lift and specialized transport services, has recently entered the British Columbia market and is currently working at Rio Tinto’s Kitimat Modernization Project. This project, as with many large projects, involves the transportation and installation of large prefabricated modules through the use of large cranes and hydraulically-driven trailers, known as Self-Propelled Modular Transporters (SPMT).

The benefits of modular construction were particularly evi94 B.C. Oil & Gas Report • 2013

dent at the Koniambo Project, a nickel mine in New Caledonia, off the coast of east Australia. The 400-kilometre-long French territory includes only one large city, the southern capital Noumea, and one power station that supplies the island with electricity. Most infrastructure in New Caledonia is rudimentary, making it a daunting challenge to build a vast plant, designed to produce 60,000 metric tons of nickel annually. The heart of the plant consisted of 17 modules totaling 40,000 tons.

Altogether, there were 450 modular constructions to be transported and installed, the heaviest weighing 3,750 tons.

The load-in from the assembly yard was completed by Sarens using SPMTs. Modules then travelled to site in four marine shipments to a wharf near the mine site, from which they were transported to site on more than 120 axles of SPMTs and erected to a height of 60 metres using tower and skidding systems.

Operation of the above-mentioned equipment, along with

over 25 cranes larger than 100 tons capacity, required over 120 employees working onsite. Safety and quality throughout construction were ensured through comprehensive planning at the company’s engineering office in Belgium and implementation of a rigorous management program onsite.

The Sarens Group has been providing heavy lift services and specialized transport for over 55 years, building a thriving enterprise that now touches every continent. With offices in more than 50 countries, Sarens’ 4,000 dedicated employees embody the spirit of the company’s motto – nothing too heavy, nothing too high.

The success of the Sarens Group as a specialist of the extraordinary is built around an unwavering commitment to safety, engineering creativity, and operational excellence. Add state-ofthe-art design tools to one of the world’s largest inventory of cranes, transporters and specialty rigging equipment, along with a team of highly skilled professionals, and it becomes clear why Sarens has evolved into an international market leader in heavy lift services and specialized transport.

For more information about the Sarens Group please visit www.sarens.com. S

www.sarens.com - info@sarens.com Sarens understands today’s high standards in the oil and gas industry. Our specialists focus on providing tailor-made solutions for all your heavy lifting and heavy transport needs.

A focus on safety and quality underlies every decision. All of our processes meet ISO / OHSAS standards and are continuously monit or ed by our professional QEHS representatives.

Contact us to learn more: Sarens Canada 1901 5th Street Nisku, AB T9E 7V7 Tel: +1 (780) 955 7564 sales.northamerica@sarens.com

B.C. Oil & Gas Report • 2013

95

TerraPro – Tradition and innovation

By Blain Davis, public relations at TerraPro Group of Companies

R

emote locations and the unpredictable weather in Canada create unique challenges for the resource industry. Namely, getting equipment and crews into remote areas while minimizing damage to terrain, protecting vegetation and wildlife. Like any challenge, this creates opportunities for solutions and, in 2007, Terrapro Group Inc. was founded by Richard Kulhawe (president and CEO) and Colin Schmidt (VP, sales and business development) to offer just such solutions.

TerraPro provides remote-access matting products across Western Canada and beyond. Since being founded in 2007, TerraPro has seized the opportunity presented to it and grown rapidly, becoming one of the leading providers of remote-access matting products in Western Canada. This growth has not gone without notice. In fact, TerraPro has been recognized as one of “Canada’s Fastest-Growing Companies”

by PROFIT magazine (award winner in 2011, and member of the “Hot 50” startups, 2012 and 2013). In 2013, PROFIT recognized TerraPro as the fourth fastest-growing company in Canada, the fastest-growing company in Alberta, the fastest-growing natural resources com-

96 B.C. Oil & Gas Report • 2013

pany, and the fastest-growing private company in Canada.

TerraPro’s success belies the simplicity of its product offering. There may be nothing simpler than a piece of wood on the ground for equipment to drive or set up on. TerraPro’s core business utilizes this traditional approach to addressing its client’s access challenges with an inventory that includes a variety of traditional wood mat products.

As this inventory continues to grow, the company has been able to entrench itself amongst the leading players in access matting.

TerraPro is also highly focused on providing innovative solutions as environmental standards and logistics issues in the resource sector continue to evolve.

This includes investing in new technologies that address concerns around soil cross-contamination by mats (a well-known and documented industry challenge), as well as new products that provide particularly helpful solutions in more environmentally sensitive areas while addressing concerns over the cost of transporting mats as well.

TerraPro has recognized that different clients have different needs and, as a result, provides mats for either rent or sale

to clients. In addition, TerraPro offers experienced crews to mobilize inventory on an ongoing basis, whether the client is renting or buying the mats from TerraPro or not. It has also developed a real-time “mat-tracking” technology, which allows the client to know where their mats are, who moved them, how many they have, and how long they’ve been at that location.

As the company moves into the future, there remains significant opportunities to continue its growth trajectory both in its traditional wooden matting business, as well as in the innovative solutions it provides.

“Our focus is to provide the highestquality products, delivered by the best people in the industry at a fair and predictable price,” says Richard Kulhawe, CEO of TerraPro Group. “Our success is based on the hard work and loyalty of our dedicated employees, customers and vendors, and the trust placed in us by investors in the company. We look forward to continuing to grow our business while serving the needs of all of our stakeholders.” S

INNOVATION Temporary Roadways and Work Surfaces for the Resource Industry PRODUCT We source the highest quality product for sale and rent with several staging yards all over western Canada.

PEOPLE We work to clearly understand your needs, confirm our understanding with you and then go about our business delivering the solution.

PRICING We strive to offer you the greatest value for your matting dollar.

MAT TRACKING We can help you know where your mats are anytime and anywhere.

• Oak • Hybrid • Fir • CLT • Rig mats • Composite • Tanks • Experienced crews • Safe • Professional • Courteous

• Fair • Competitive • Predictable

• Online • Real time • Customized reporting

2012

200

855.255.MATS (6287) toll free

www.terraprogroup.com

Corporate Office #200 Brentwood Professional Place 48 Brentwood Boulevard Sherwood Park, AB T8A 2H5

855.255.MATS (6287) toll free Email: info@terraprogroup.com

A portion of Mat Rental revenue goes to support Breast Cancer research.

Worksite solutions crafted from houseboat beginnings TA Structures

By Sarah Kyllo

A

few beers, a conversation, and a boat – that is all it took. The decision for Twin Anchors to diversify from manufacturing houseboats to building well-site accommodation structures for the oil and gas industry was that simple. However, it was with time, effort, and dedication that TA Structures grew into the company it is today.

TA Structures’ roots are with Twin Anchors Houseboat Vacations, a rental company the family has operated on Mara and Shuswap lakes in Sicamous, B.C. since 1977. It was here on the Twin Anchors dock that a conversation between friends launched into a new business venture.

“A close friend of my husband’s was visiting from out of town during the summer,” said Georgina Kyllo, TA president. “He was working in the oilfield industry at the time and was staying on one of our boats to unwind during his vacation. The two were sharing stories and a few beers on the top deck one night, when he mentioned that he wouldn’t mind staying in camps as much if they were built like our houseboats. That was all it took,” she laughed.

98 B.C. Oil & Gas Report • 2013

Confident in their ability to efficiently manufacture well-site structures of equal quality to the luxury houseboats built by Twin Anchors Manufacturing, they made the transition from building from the hull up to building from the skid up in 2005. For a time during those early years, TA, the rookie in the industry, was widely known as “those houseboat guys”. It was during the global economic downturn of 2008 that the significance of this transition was felt, with houseboat manufacturing coming to a standstill. TA Structures is what kept Twin Anchors and its employees afloat.

Today, TA Structures is the largest private-sector employer in Sicamous, building rugged, durable and modern units at its 60,000-square-foot CSA-certified manufacturing plant in Sicamous. Each TA project is unique, with careful consideration of the client’s specific needs to offer affordable and flexible solutions. Built with superior materials and skilfully crafted, TA manufactures a range of products, including worksite accommodation units, rig managers, command centres,

camps and dorms, offices, as well as steel and aluminum fabrication.

Their units have been called “a home away from home”. In the past, worksite accommodation has been notorious for being considered cramped and uncomfortable. TA Structures has heightened the industry standard with a long-time history of hand-built quality products, exceptional services, and credible customer satisfaction. It is no longer feasible for companies, serious about employee retention, to accept less than satisfactory living conditions for their workers.

ISO-approved, each component of manufacturing is built to precise specification in a construction environment made for success. TA Structures works to build lasting working relationships with a commitment to exceptional services and customer satisfaction.

To learn more about TA Structures, visit

www.tastructures.com,

or

call

toll-free 1-800-558-0881. To check out TA’s parent company, Twin Anchors Houseboat

Vacations,

www.twinanchors.com. S

please

visit

1.800.558.0881 tastructures.com

Under pressure, under control Peregrine Pressure Testing Ltd.

P

eregrine Pressure Testing Ltd. was incorporated in August 2006 and currently operates a fleet of 14 pressure-testing units. We operate a variety of units with operating pressures to 105,000 KPA (15,000 PSI) and pump rates to 400 litres per minute (LPM). All our units are equipped with our state-ofthe-art digital computerized charting and recording system, and have a secondary backup charting system.

Peregrine does a variety of pressure testing, from blow-out prevention systems, plant and facility testing, pipelines, formation integrity tests, formation leakoff tests, micro fracs and hydrology tests.

We introduced our first 105,000 KPA high-rate unit in 2011. This unit is capable­ of 90 litres per minute at 105,000 KPA and is equipped with an 8,000-litre tank, centrifugal pump for line filling, and fluid transfer at up to 1,200 LPM. In 2012, we put our newest high-pressure high-volume unit into service. This unit is capable of 275 LPM at 69,000 KPA and 400 LPM at 42,000 KPA. This unit is also equipped with a centrifigal pump capable of 1,500 LPM for line filling or fluid transfer, bowie pump, 12,000-litre fluid tank, 1.5 figure 1502 integral iron and fittings, and 100 feet of 105,000 KPA working-pressure hose.

We now offer high-volume low-pressure diesel-powered pumps for pipeline filling or fluid transfer, the smaller units are capable of pumping 4,000 litres per minute with lift capabilities of 360 feet and are self-priming from 30 below the pump. Our larger unit is capable of 16,000 litres per minute, and up to 700 feet of lift. We are also able to chart and record fill rate and volume pumped.

We currently have units stationed in Fort St. John and Fort Nelson, B.C., as well as service Northwest Alberta. All units are equipped with a full range of test subs, crossover subs and cup testers, flow metre, digital deadweight, standard gauges, and Barton chart recorder for back up. With our digital computerized charting and recording system we are able to record all data in one-second intervals. All data can be exported in an Excel format with pressure, volume pumped, pumping rate,

All units are equipped with a full range of test subs, crossover subs and cup testers, flow metre, digital deadweight, standard gauges, and Barton chart recorder for back up.

100 B.C. Oil & Gas Report • 2013

temperature and remote pressure if required. By simply clicking on the exported chart it will give you any information you require.

Peregrine Pressure Testing Ltd. is COR certified, registered with ISNetworld, Complyworks, and PICS. We are also registered with Worksafe BC and Alberta Workers’ Compensation Board, and carry full liability insurance.

All our operators go through an intensive training and mentoring program so we can have the most capable people doing fieldwork.

At Peregrine, safety is our number-one priority. Our motto is “Under Pressure, Under Control”, and with our digital charting and recording system, if there are well control issues, you have digital back up to show the tests were done to the correct pressures and timelines.

If you have any questions or require more information, please feel free to contact us at 250-787-8662, or email pptbob@telus.net. S

A team that works

E

dge Electric & Controls is a Dawson Creek, B.C.-based company servicing the oil and gas industry in Northern B.C. and Northern Alberta. We opened our doors in September 2008 with four partners and an office manager. We have had continual growth, and to date we have a team of 24 that consists of employees and contractors. We have highly skilled journeyman electricians, journeymen instruments technicians, as well as apprentices in various stages. We carefully hand select our team in order to maintain excellent service to our valued customers. Our services include maintenance for the oil and gas industry, construction for the oil and gas industry, as well as electrical services ranging from industrial to residential. We pride ourselves in maintaining a safe, fun work environment, as well as having safe, happy, satisfied customers.

The safety of our workers and those around us is important to our team. To date we have not had any reportable incidents.

We are COR-certified (Certificate of Recognition) and we comply with ISNetworld, as well as Comply Works and Browz.

Protection of the environment is also important to us here at Edge, as well as Edge’s customers. This is maintained by proper housekeeping and proper training of our workers.

Training for our team is ongoing. Proper safety tickets are up to date, such as H2S and First Aid. As well, our team of journeymen provide proper training to our apprentices to practice and follow policies and procedures set out by Edge Controls.

Due to our growth, Edge is undertaking the building of a 16,000-square-foot building in Dawson Creek’s newest industrial park near the airport. This will be our new home and we will have office and shop space available to lease.

We see the growth in the area as an opportunity to grow our company to better serve the needs of our existing customers, and are poised to serve our new customers.

We look forward to this challenge, and as a hometown, homegrown company, we are here to stay!

Visit us at 34 Vic Turner Road in Dawson Creek, B.C. S

INSTALLATION & COMMISSIONING | CONSTRUCTION | POWER DISTRIBUTION & MOTOR CONTROL PROGRAMMING & SUPPORT | CONTROL PANEL FABRICATION | WELLSITE & RTU INSTALLATIONS CALIBRATION & TESTING | ZEDI INSTALLS & SERVICING | COMMISSIONING & START-UP ASSISTANCE ADMINISTERING MEASUREMENT PROGRAMS | PROJECT MANAGEMENT

“Local People Providing Cutting EDGE Products and Services” Edge Electric & Controls 613 - 104th Avenue | Dawson Creek, British Columbia | V1G 2H1

P: (250) 784-0555 | F: (250) 784-0556 | E: office@edgecontrols.ca

www.edgecontrols.ca B.C. Oil & Gas Report • 2013 101

The calling Alpha Safety Ltd.

A

t the start of the winter season of 1996-97, David Phibbs headed for Fort St. John to look for first aid work in the oil patch with his son Mark, two mobile first aid vehicles, and a first aid trailer. After approaching companies for work for many days with no success, they had finally taken a day off to do some ice fishing on Charlie Lake and consider their options. They did not catch any fish that day, but they did receive a phone call from Surerus Pipeline. Surerus hired them to cover first aid on a major pipeline they were doing north of Fort St. John, and so began the venture that became Alpha Safety Ltd. Later, in the summer of ‘97, Phibbs’ whole family moved up to Fort St. John. As the doors of opportunity

opened for Alpha Safety, the company began to grow steadily.

Today Alpha Safety, co-owned by David Phibbs and his wife Judy, consists of two divisions – training and field operations. Each year, literally thousands of workers get their required safety certificates through Alpha Training Solutions, located in a 9,000-square-foot training facility in downtown Fort St. John. Training is also available on-site in any location convenient for the client. Alpha Training Solutions, a division of Alpha Safety Ltd., is known as the premier safety training school in Northeast B.C. The field division consists of a fleet of mobile treatment centres and H2S air trailers, with medic and H2S safety su-

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pervisors. Field operations are housed in a large shop in a separate location in Fort St. John.

Little did they realize 16 years ago that Alpha would be where it is today.

Over the years, they have seen many

The field division consists of a fleet of mobile treatment centres and H2S air trailers, with medic and H2S safety supervisors. safety companies come and go, and it seems a lot of them came to ride the wave, cash in, and leave. Alpha has never thought that way; instead they are a company that has put its roots down to provide stable employment over the long haul. Does this mean they don’t have their ups and downs? Of course not! The oil patch has its cycles after all, but it’s the challenge of balancing those seasons of boom and bust that separate those who are committed to the industry from those who are not.

A long-term outlook, with proper planning and key employee trust are essential. Their mission statement: “To be a positive influence in the marketplace locally, nationally and internationally, demonstrated by both our words and actions” is what the heart of their company is about. Their core values of trust, service, stewardship, and long-term caring relationships are the foundation it is built on. To put these into practice takes focus, discipline, and encouragement. Yes, it took a lot of hard work, long hours and sacrifice, but it has been worth it all.

David and Judy feel that it is Alpha’s destiny to fulfill its calling to be a positive influence in the marketplace. S

9803 102 Street, Fort St. John, BC V1J 4B3 PH: 250-787-9315 | FAX: 250-787-8839 E: receptionist@alpha-training.ca

TOLL FREE 888 413 3477 www.alpha-training.ca

FIRST AID, H2S, INDUSTRIAL, DRIVER & OUTDOOR COURSES

TRAINING

www.alphasafety.net

A DIVISION OF ALPHA SAFETY LTD.

1 855 870 1199

8703 - 101 Avenue Fort St. John, BC, V1J 2A5 PH: 250-785-7035 E: dispatch@alphasafety.net

DISPATCH

24 HOUR

AND H2S SUPERVISION

FIELD MEDIC

Spray-applied polyurethane liners replace traditional lining systems in Northern B.C.

H

alo Environmental Ltd. has introduced spray-applied polyurethane mem-

branes to the Northern B.C. area for secondary containment. Several local oil and gas operators are now switching from the traditional polyethylene lining systems to the more advanced and reliable polyurethane spray liners.

Spray-applied polyurethane membranes have an excellent resistance to very cold temperatures (down to -50 degrees Celsius) and very hot liquids (up to 150 degrees Celsius), excellent chemical tolerance, acid resistance, and an incredible surface abrasion/ wear and tear durability unmatched by LDPE and HDPE membranes.

Halo has been using this technology for the past 10 years in Western Canada, and has developed a product specifically engineered for the harsh and ever-changing climate in Canada that we have become accustomed to.

The polyurethane membrane picks up where traditional polyethylene liners leave off. The polyurethane liners’ ability to attach to any surface removes the requirement for pipe boots that are wrapped around protrusions, resulting in weak points in the containment area.

The metal clamps that are used to secure the boots to the piles often come loose and allow fluids to pass between the boot and the pile. This also eliminates the need to use any type of tape or calking when sealing around gaps, and since it is all spray applied in a multipass coating system, it is one complete membrane. LDPE and HDPE liners are welded together, which causes increased stress points on the seams and increases the potential for leaks and separation to occur over time.

104 B.C. Oil & Gas Report • 2013

Many of the tank farms and fluid storage areas around the province have ag-

Halo has been using this technology for the past 10 years in Western Canada, and has developed a product specifically engineered for the harsh and everchanging climate in Canada that we have become accustomed to.

gregate placed over top to protect them from UV damage and surface wear and tear. This inhibits proper liner inspections and leaves an open door for potential contaminants to leak out of the area without the operator’s knowledge.

This problem is overcome with the use of the polyurethane spray liner, as it is UV resistant. It does not require the aggregate to cover the liner, will elongate up to 100 per cent of its origi-

unique smoke machine. A thick pres-

liner is truly the next generation when

nal size, and will stay flexible down to

surize fogging smoke is blown under

it comes to secondary containment,

-50 degrees Celsius. This makes Halo’s

the liner, and if any holes exist, the

saving operators time and money from

polyurethane spray liner a far superior

smoke will billow out of these holes,

repairing faulty liners, and dealing

choice for a long-term secondary con-

easily identifying any trouble spots

clean ups from potential spills.

tainment application.

that can then be fixed with the poly-

Halo Environmental Ltd. is all you

Halo also has pioneered the ability

urethane spray.

need for your secondary containment

to test the integrity of the liner with its

Halo’s spray-applied polyurethane

needs. S

1st in Secondary Containment

Spray Applied Polyurethane Liners For Secondary Containment for: New and Existing Tank Farms | Compressors | Concrete Sumps & Trenches | Leaking Facility Roofs Repair Existing LDPE & HDPE Liners | Protects and Preserves Concrete | Corrugated Zero Ground Disturbance Metal Containment Walls | Spray Foam Insulation for Tanks, Well Heads, and Skids | Smoke Test Existing Liners For Confirmed Integrity Benefits: • Stays Flexible Down To -50C

• Fast Curing – Will attach to Any Surface

• Fire Resistant & Can Handle Fluids Up to 150C

• No Boots or Clamps Required to Attach to Pipes, Piles, or Walls

• Abrasion Resistant • Chemical Resistant • Does Not Require Ground Cover

• Can be installed all Winter Long • Several Mobile Spray Units to Handle Any Sized Project

Fort St. John: 250 787 7077 | Grande Prairie: 780 830 0177 | Edmonton: 780 265 4256 | Calgary: 403 945 0177 | Toll Free: 888 945 0177

www.halo1.ca

B.C. Oil & Gas Report • 2013 105

The right fire truck for the job Smokey Series Fire Trucks

T

hrough innovation and ingenuity, Safety Boss has been a worldwide leader in the business of well control and hydrocarbon firefighting for 57 years. With the same approach, Safety Boss offers a complete line of safety services. It’s in the preplanning stages that Safety Boss can be of the most help.

As frac operations get bigger, so does the demand for firefighting equipment and personnel. Frac equipment has already been lost on several smaller frac operations due to inadequate supply and delivery of firefighting foam and water. Multi-truck fire systems do not mean better fire knockdown rates. Smokey fire trucks are the only custom fire trucks specifically designed for the largest possible demands in the oil and gas industry. One Smokey Fire Truck is adequate for the largest frac operation with a minimum of 400 bbl (48 kL) of on-site water, as well as additional firefighters depending on the operation.

FAQ’s - What makes Smokey Fire Trucks different?

Are Smokey Fire Trucks UL rated? Yes, a plate is mounted on every Smokey Fire Truck with these ratings. The Underwriters Laboratories Rating is a third-party rating ensuring our fire trucks do what we say they can do.

Why is the pump rate so important? All NFPA (National Fire Protection Association) specifications are based on the pump rate versus the area to be covered. Simply put, the higher the pump rate, the larger the area that can be covered. Smokey Fire Trucks have the largest fire pump available. They’re all UL Performance Rated at 3,500 GPM (13 m3/min) from a 10-foot draft; however being a Centrifugal Type Pump as the suction pressure increases, so does the discharge rate. For example, taking suction from a hydranttype system, this same fire truck will deliver discharge rates over 5,000 GPM (19 m3/min). The obvious benefit is that the Smokey Fire Trucks are capable of covering much larger areas than com-

106 B.C. Oil & Gas Report • 2013

petitors’ trucks, some of which are rated as low as 500 GPM (1.9 m3/min) and none have the larger pumps.

What type of Foam Injection System is used? The Smokey Fire Trucks use a balanced pressure system that allows for an accurate foam consistency regardless of changes in rates or pressures. The balanced pressure system allows for foaming any outlet stream.

For example, the firefighters may want a straight water stream for cooling in one area and another foamed stream for a fire knockdown.

What type of foam is used? Safety Boss recently upgraded to FireAde®2000 which has six times the Fire Knockdown Rate of UL162, while using one-sixth of the volume. FireAde® 2000 is biodegradable and environmentally safe.

What is the coverage range of the water/foam stream? From any single point, the coverage range is 100 metres, which is enough for the largest frac operations.

Are Smokey Fire Trucks winterized? Yes, they have a completely independent heating system to keep the enclosed pump compartment, water tank, and foam concentrate at a controlled temperature. Smokey Fire Trucks have proven performance at -50°C, a very important reliability feature for typical Canadian sub-arctic operating conditions.

What type of shower system is on board the Smokey Fire Trucks? Are they ANSI/OHSA/WCB compliant? Three independent decontamination/shower stations complete with showerhead, eyewash basin, and deluge hose are included. The whole system is fully compliant with ANSI/OHSA/WCB specifics. Also, each unit is capable of full containment of contaminated fluids.

Call Safety Boss for a quote on all your safety services to ensure that you have the right capability on site to protect your investment, as well as your crew’s safety. S

Giving back to the community Rosenau Transport Ltd.

By Ken Rosenau

Fort Nelson facility.

R

osenau Transport Ltd. started in 1957 with a single pickup truck and has grown to over 350 power units and approximately 1,000 trailers. As a result,

Rosenau Transport continues to infiltrate more and more communities in Western Canada. With 32 terminal and agency locations, Rosenau continues to grow in communities from as far away as Brandon, Man. to our most northern community of Fort Nelson, B.C. Rosenau currently employs over 500 people and continues to grow every day.

Rosenau Transport started out as the typical mom and pop operation, and has grown into one of the largest privately held transport companies in Western Canada. With becoming a leader in the industry, our company strives to be a leader in the community as well. When Rosenau Transport sets up shop in a town, we set up with a long-term commitment in mind. With that long-term commitment,

we want to invest in the community that supports our business.

Rosenau has been involved in numerous events, charities, and sponsorship programs since inception. We want to be involved, whether it is donating to a local baseball team

Rosenau has been involved in numerous charities, functions, and various events to give back to the community that has helped us prosper, including the Fort Nelson Hospital Foundation hockey tournaments and curling bonspiels, Fort Nelson Seniors Society, Fort Nelson Petroleum Association, and the Childcare Resources & Referral.

108 B.C. Oil & Gas Report • 2013

or various provincial charities, like the Alberta Heart and Stroke Foundation. Some of which are near and dear to our hearts, including the STARS Air Ambulance.

Carl Rosenau, president of Rosenau

of the shipment, we proved that we

over the past three years. The Fort Nel-

were going to make it in Fort Nelson.

son Seniors Society, Fort Nelson Petro-

As time went by, the freight started to

leum Association, and the Childcare

increase and we were quickly up to a

Resources & Referral are just a few of

truckload of freight a day. As a result,

the various groups and charities that

we quickly recognized that we need-

we try to support on a daily basis. As

Transport says, “God forbid one of our

ed a bigger facility. The old adage of

a result of some of this hard work,

drivers will ever need this service, but

“build it and they will come” came to

Rosenau Transport was recognized as

if we ever do need it, we want to sup-

mind. In December 2009 we moved

Business of the Year the past two out of

port a charity that will bring one of our

into a new eight-door facility. With the

three years.

own safely home.”

addition of this new space, it quickly

Rosenau Transport Limited is a

One of our northern British Colum-

became evident in the community that

leader in the transportation world and

bia terminals is situated in Fort Nel-

Rosenau was here for the long haul.

strives to be the leader in the commu-

son, B.C. Fort Nelson is home to ap-

In the past four years, Rosenau has

nities that have continued to help us

proximately 4,500 residents. Rosenau

been involved in numerous chari-

become best in class. Giving back to

Transport started serving this small

ties, functions, and various events to

the various communities that help us

community back in late 2007. At the

give back to the community that has

become a better company makes me

start, we were a company trying to

helped us prosper, including the Fort

feel proud to be part of this organiza-

make inroads and selling our service

Nelson Hospital Foundation hockey

tion.

and on-time performance. Some days

tournaments and curling bonspiels

Ken Rosenau is the director of opera-

were a struggle, but no matter the size

that have raised in excess of $200,000

tions at Rosenau Transport Limited. S

SERVING WESTERN CANADA • LTL • Full Load • Bulk • Hot Shots/Express • Scheduled Delivery • Overnight Service • Decks • Container Chassis • Heated Vans • Consolidation • Yard Storage • Heated Warehouse Storage

DAILY SERVICE BETWEEN • Brandon • Brooks • Calgary • Chetwynd • Cranbrook • Dawson Creek • Drayton Valley • Edmonton • Fort McMurray • Fort Nelson • Fort St. John • Fox Creek • Grande Prairie • Lethbridge • Lloydminster • Manning • Medicine Hat • Peace River • Prince George • Red Deer • Regina • Saskatoon • Sparwood • Swift Current • Tumbler Ridge • Wainwright • Whitecourt

WWW.ROSENAU.ORG For more information please go to our website.

B.C. Oil & Gas Report • 2013 109

Never lost – Save time and funds with the right navigation system

Search LSD for Wellsite info on PatchMap PC.

S

kyBase Geomatic Solutions Inc. (dba: SkyBase Solutions) has been around the oil and gas

industry since 2001. Distilled from a few decades of field surveying in the patch prior to that, company CEO Rob Coutts says “when people realize what we can do for them, they embrace our tools immediately, as we help them keep money in their pockets; ROIs are typically calculated in a few short days.”

SkyBase has set the bar high in oil-

PatchMap has a few flavours, but

In addition to top sellers PatchMap,

field navigation.

the main usage is in combination with

BushMap and AgMap, SkyBase has also

“We have had a consultant call back

Garmin GPS units for in-vehicle navi-

pioneered several software solutions

the very next day to thank us and let

gation and in office-based PC software

for situations that no sane software

us know that it had already paid for

for job bidding and crew dispatching,

company would consider (as there are

itself!”

and map and turn printing. Some Au-

too few potential customers). FireSpot

The product that he was referring to

tomated Vehicle Location (AVL) com-

is a PC-based product that enables a

is the premier navigational map sys-

panies utilize a web-based version of

helicopter pilot to perform as a GIS

tem in the Canadian oil and gas indus-

the product, and soon it will appear as

tech while locating and tagging fire

try, appropriately called the PatchMap.

an Android cellphone app.

hotspots for ground crews. GPSbuddy

110 B.C. Oil & Gas Report • 2013

Garmin GPS.

“If you like the features of PatchMap and GPSbuddy, but want a ‘real’ GIS system, you’ll feel right at home using HyperMap.”

All roads lead to SkyBase!

is a free GPS to PC (and back) transfer tool that utilizes Google Maps satellite view for instant situational awareness.

After deciding to be more than a map and navigation expert, SkyBase Solutions have developed 360-degree

photo viewing software and the systems for deploying them on both vehicles and helicopters.

“Now we are entering into customized hardware/software solutions that can be leveraged for regulatory compliance purposes, but then used by others in the same company (the ‘hey, I could use that’ moment) for environmental and strategic development, a side benefit not initially considered,” says Coutts.

He adds, “We also have something quite revolutionary coming out soon;

it’s really going to be a game changer in the GIS sector that we inhabit – we’re calling it HyperMap. If you like the features of PatchMap and GPSbuddy, but want a ‘real’ GIS system, you’ll feel right at home using HyperMap.” To get a sneak peak of this new program, head to SkyBase.ca.

For more information, contact: Robert Coutts CST rob@skybase.ca / Cell: 780-518-2666 President / CEO & founder SkyBase Geomatic Solutions Inc. S

B.C. Oil & Gas Report • 2013 111

Making the earth move for over 50 years

V

.E. Brandl Ltd. is a family-owned business based in Fort St. John, B.C. that has been delivering quality service, equipment and earth moving expertise to the oilfield construction industry in Northeastern B.C., Northwestern Alberta, and the Yukon since 1961. A respected name in the industry, V.E. Brandl has built an outstanding reputation over the years, priding itself not only on the quality of its work, but also on its integrity and concern for employee safety and the environment.

Originally founded by Vic Brandl, his sons Barry, Ron, and Kevin are now running the company.

V.E. Brandl has approximately 80 employees, many of them long term, and its supervisors and operators bring a wealth of experience to the job.

“Our biggest asset is our employees.

Whenever we work with new clients, they seem pretty impressed with the quality of our work,” Barry says.

In addition to its people, V.E. Brandl’s large fleet of modern equipment gives them the ability to handle a wide range of projects. V.E. Brandl maintains its fleet of equipment according to one of the most thorough maintenance programs in the industry in order to prevent downtime on job sites. When maintenance or repairs need to be done in the field, they have five fully rigged service trucks, which are able to be mobilized quickly to deal with the issue.

112 B.C. Oil & Gas Report • 2013

V.E. Brandl also prides itself on its commitment to safety. In its recent annual Certificate of Recognition (COR) audit, the company scored 99.27 per cent, and has had over two years without a lost-time accident. V.E. Brandl has been innovative in modifying it’s equipment so that it’s easier for operators to get on and off their crew trucks and equipment, because over the years that’s been one of the major causes of LTAs. One of the problems, particularly with high drive Caterpillars, is that there is nowhere to stand while fueling. V.E. Brandl has modified its service truck decks with a flip-out platform that workers can stand on so they don’t have to balance themselves on the tracks to fuel up. The company has also installed guardrails at the back of its trucks to ensure that operators use the proper steps when climbing in and out of their service trucks, along with adding steps and handholds to all of its equipment, in addition to the ones provided by the manufacturer.

V.E. Brandl also seeks to ensure employee safety inside its vehicles. In response to concerns and documented cases of people being injured by being struck by objects inside a vehicle, V.E. Brandl had a local plastics company build containers which are attached to the back seat of its crewcabs using the existing seatbelts along with bolts on the floor, which allow for objects, such as lunchboxes and thermoses, to be secured

during travel. All trucks are equipped with in-vehicle monitoring systems, which helps track where employees are at all times in addition to ensuring that they drive within the speed limits.

With shale gas development, the energy industry has changed the way it operates, and V.E. Brandl has changed with it. With many multi-well pads measuring 250 metres by 200 metres or larger, it is no longer efficient to move the material with dozers as was the norm in the past. As a result, V.E. Brandl has added 15 Caterpillar 627 motor scrapers to its fleet, including two of the latest models, 627H’s, as the company has found these to be the most cost-effective way to move material these distances. In order to further increase the efficiency of their crews, they are now able to offer Topcon GPS control for our motor scrapers, dozers, excavators and graders, which allow them to finish projects to precise tolerances with greater speed than would otherwise be possible.

Looking forward, V.E. Brandl sees a long-term future for shale gas in Northeastern B.C. And the company is looking forward to serving the energy industry for many years to come.

Please contact for more information: V.E. Brandl T: (250) 785.2916 T: (403) 835.2916 E: info@vebrandl.com www.vebrandl.com S

Based in Fort St. John since 1961 V.E. Brandl has been serving the Canadian Oil and Gas Industry for over 50 years.

With a fleet of 90 pieces of earthmoving equipment we have the right machine for any job whether it is building roads, wellsites, plansites or wherever you need material moved quickly and cost effectively. We have recently increased our fleet of 627 motor scrapers to a total of 15 including two 2013 627Hs in response to the industry’s move to large, multi-well pads which require material to be moved distances beyond what crawler tractors can do efficiently. We have outfitted multiple pieces of equipment with Topcon 3D GPS control to maximize the efficiency and accuracy that jobs can be done with. With innovative equipment modifications and guarding, a 99.2% score in our most recent COR audit and a WCB claims cost that is one-third of the industry average V.E. Brandl truly puts safety into action.

Scrapper with forest.

One call does it all Radar Road Transport Ltd.

Rock truck.

R

adar Road Transport Ltd. has been serving Fort Nelson and the surrounding area for more than 20 years. Owner Rick Seidel has been working in the transportation, construction, and maintenance business for more than 30 years.

With more than just trucks, Radar Road Transport’s construction division provides: road maintenance, road and lease construction, reclamation, right of ways, and winter access. They also have tow tractors complete with front-plow push blades, winches or use the construction disc or the sheepsfoot packer attachments for your needs. Also available are the smooth drum packers, various dozers, excavators, backhoes, graders with front-push blades and wings for the winter, and various picks for any surface preparation, loaders, skidsteers, water tanker or water trucks. Plow trucks complete with underbodies and front-push blades are also available. You need it, Radar’s got it.

Radar Road Transport’s transportation 114 B.C. Oil & Gas Report • 2013

division continues to offer heavy haul of all your big loads with up to 10 axle configurations. We can haul it all even when road bans are on so we can get your load where you need it to go. Having their own pilot cars ensures the safe transport of your loads. The fleet of trailers include highboys, scissornecks, lowbeds, stepdecks various boosters, and jeeps. As well, they have Tandem and Tridem winch tractors among the fleet of trucks. Having their own end dumps, gravel trailers, and box trucks with access to material (sand, gravel, shale, etc.) not only can they haul all your material needs, the construction division can place it, spread it, and pack it…. one call does it all.

Some of their recent successes include the hauling and placement of 5,000 loads of gravel incident-free on a project in northeast B.C. Continuing to comply with industrydriven safety compliances, they maintain a COR certification with Enform, are current members of ISN Networld,

ComplyWorks, PICS and Workers Compensation Board of B.C. Having a skilled, diverse team of personnel who are safety orientated, trained, knowledgeable, and who pride themselves on providing reliable service, Radar continues to be an industry service provider.

You can find Radar Road Transport Ltd. at 4204 - 49th Avenue in Fort Nelson, or just look for their sign, which can be seen from Main Street. Stop by or look them up on the website at www. radarroadtransport.com Founded, owned, and operated by Rick and Carol Seidel of Fort Nelson, they are unique in that they are still small enough to be considered a “mom and pop” operation, but diversified enough to meet their client’s needs.

Offering reliable quality service with competitive pricing, if Rick can’t help you, he will know someone who can. S

1 1 7 4 7 – 2 3 1 S T R E E T, E D M O N T O N , A B T 5 S 2 C 5

T: 7 8 0 - 4 5 1 - 8 0 8 8 • F : 7 8 0 - 4 5 1 - 8 0 9 0 Based out of Edmonton, Alberta, GNS has been building and supplying workforce accommodations and building solutions throughout (Western) Canada for over fourteen years. Backed by our team of experienced professionals, we work quickly but efficiently to provide you with top quality turnkey solutions to maximize workforce comfort and productivity.

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Breathe right

By Darryl Bodnar

A

s with all industry-related safety equipment, the servicing of breathing apparatus is essential in ensuring they function as required, especially in IDLH environments. Self Contained Breathing Apparatus (SCBA) and Supplied Air Breathing Apparatus (SABA) are widely used throughout the oil and gas industry. Recently there has been some discussion regarding the requirements of servicing the equipment.

What do the regulations say?

Follow the manufacturer’s instructions and CSA Standard Z94.4-11 for care and maintenance of SCBA/SABA; this in-

cludes a multitude of tests, including a complete visual/ functional inspection, as well as the function test (flow test) of the first and second stage regulators. All discrepancies are recorded on the flow test report.

A flow test is a comprehensive test of the SCBA or SABA to ensure it is working within the parameters of the manufacturer, as well as NIOSH or NFPA. The flow test includes, but is NOT limited to: • Mask leak-check, as well as a through visual inspection • First breath on regulator activation pressure • Exhalation check-valve opening pressure • Status mask pressure

Manufacturer

Flow test requirement

Mandatory overhaul

Drager

Annually

None (*Annually part replacement requirement)

MSA

Annually

Yes

Scott

Every two years (*annually in high-use applications or None NFPA units)

Survivair

Annually

Yes

Specializing in Heavy Industrial, Infrastructure and Institutional.

With Plants In: PRINCE GEORGE • DAWSON CREEK • CASTLEGAR • TERRACE

Toll Free: 877-561-5025 116 B.C. Oil & Gas Report • 2013

rebar@canasteel.com

www.canasteel.com

• Bypass flow rate • Pressure gauge accuracy • Low-pressure alarm activation PSI accuracy • High-pressure leaks • Breathing resistance at standard work rate • Breathing resistance at maximum work rate • Manufacturer-specific test passing criteria – this varies with each manufacturer Specific manufactures require the test at different intervals, as well as some mandatory regulator or part specific overhauls.

Overhaul and/or maintenance requirements are listed in each manufacture’s operation and maintenance instructions.

pertaining to the unit. This MUST include identifiable and specific information relating to your apparatus. i. The serial number of the first stage and/or second stage regulator must be the same on the apparatus as on the flow test report. b. Look for the specific brand logo i. If the flow check is performed by an authorized service centre, using brand-specific software, the applicable logo (SCOTT, SURVIVAIR, DRAGER, MSA) will be present on the flow sheet on the top left corner. If the “biosystems” or “honeywell” logo is present, the apparatus has NOT been flow tested using the required brand spe-

How do I tell if my flow test was performed by an authorized service centre?

Questions have been asked by many end users as to how they can tell if their SCBA or SABA has been certified by an authorized and recognized service centre. There are a couple simple, yet tell-tale ways: 1. Check the flow report a. You MUST receive a flow sheet indicating the flow test results from the certifying party with specific information

Considering a new project or major redesign? BC Safety Authority can help.

118 B.C. Oil & Gas Report • 2013

cific software. c. The Flow Rate Chart i. In looking at the flow rate chart on the flow sheet, you should see the company name and address in a watermark. Although some resellers may third party this service, it is a good indication whether or not the company you are working with are certified with the specific manufacturer.

2. Ask to see specific certification a. Brand-specific training is comprehensive and intense. It is only made available by the manufacturer a few times per year and the training is performed over multiple days (four to five at a minimum). i. Technicians that meet the requirements, including hands-on observation and written tests, are presented a certificate identifying them as a “certified technician”.

The certificate also identifies the authorized service centre the technician is employed by and is NOT transferable to any other company without the approval of the manufacturer. ii. The technician remains ONLY certified while employed by an authorized service centre, otherwise the certificate is VOID. b. Manufacturers will at times allow large users to become “in-house” certified to service the equipment. These users have a large number of apparatus in their fleet for their own company use. In-house service centre agreements are explicitly clear identifying the restriction to owned equipment only. They are not authorized to perform any third-party services or repairs.

c. As a commitment to customer service, the manufactures will offer use and care training to all end users (there is even a “specialist level” training course). Although the training can be very informative, it is NOT as comprehensive as the technician level training, and hence does not qualify the participant as a certified technician.

3. Check with the manufacturer a. A call to the specific manufacturer will help determine if your provider is authorized to perform the service on your apparatus. Contact information can be obtained online, or ask your provider for the specific regional sales representative.

Used/reconditioned equipment Given the cost associated with new equipment, at times, economics enter the equation and users entertain the notion of purchasing used or reconditioned equipment. Although manufactures do not necessarily denounce the sale or purchase of used or reconditioned equipment, buyer beware

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APEX Technological Field Services Ltd.

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www.apextech.ca B.C. Oil & Gas Report • 2013 119

Type

Hydrostatic Test Requirement

Life Expectancy

Steel/aluminum

Every five years

Indefinite** (until they fair a hydrotest)

Hoop-Wrapped

Every three years

15 years

Fully wrapped fiberglass/Kevlar

Every three years

15 years

** Aluminum cylinders older than 15 years require an annual internal neck inspection as per CSA Z94

should be employed. Most manufacturers allow the equipment to be re-certified for use, provided it is conducted by an authorized service centre.

• There are many online and otherwise companies offering used or reconditioned equipment (SCBA/SABA) that are NOT certified nor authorized by the manufacture. By following the same guidelines as previously mentioned, the buyer can be assured the equipment will perform as designed, especially in IDLH atmospheres.

• Purchasing used or reconditioned equipment from an unauthorized provider can put the user at significant risk, as well as void the intended approvals and warranties on the unit.

Given the comprehensive warranty, training and support offered by distribution partners, often the long-term cost of a new versus reconditioned or used units demonstrates significant benefit.

DEL

Communications Inc.

Cylinders As with the regulators, there are also specific requirement regarding the mandatory hydrostatic testing of breathing air cylinders; CSA B339, B340 outline these requirements. Given the potential danger, it is unlawful for any service provider to fill a cylinder that is past its hydrotest due date or life expectancy date.

Cylinders approved for a specific brand are NOT approved to be used in another brand of apparatus. The use of cylinders that do not specifically indicate the manufacturer, often referred to as “jobber” cylinders are NOT approved for use in brand-specific apparatus. The use of these will void the NIOSH approval on the equipments.

Breathing apparatus is a vital piece of safety equipment largely used in the oil and gas industry. It is imperative that this equipment is certified according to the regulations to ensure worker safety. S

Call: 1.866.831.4744 www.delcommunications.com

DEL Communications Inc. & You.

The key to success.

We offer outstanding personal service and quality in the areas of: 120 B.C. Oil & Gas Report • 2013

CREATIVE DESIGN ADVERTISING SALES TRADE PUBLICATIONS QUALIFIED SALES & EDITORIAL TEAM

Relax with unparalleled service at Northern B.C.’s Wonowon Lodge

S

ituated on Mile 101 of the Alaska Highway, Wonowon Lodge is a home-away-from-home for many who work in the oil and gas industry. The modern open camp facility operated by Camco Ventures Inc. and PRM Camps and Catering is conveniently located only an hour’s drive from Fort St. John, the oil capital of B.C. “It’s becoming more common now of the industry’s movement to these open camp facilities,” says Dwayne Cameron of Camco Ventures Inc. “It’s the convenience of having rooms readily available, without getting involved in the coordination of logistics, permitting, site preparation, installation, reclamation, etc., that comes with setting up their own private facility. We are making every effort to provide a hotel feel, allowing companies to utilize rooms as re-

quired for the duration of their projects.”

The needs of the oil and gas sector in B.C.’s northeast corridor, as well as the evident shortfall of accommodations, sparked the mobilization of the existing camp from a project north of Fort Nelson, B.C. to Wonowon in 2011. Subsequently, preparation for the lodge began immediately to clear, pack, and prepare a site large enough to accommodate standard, private and executive rooms, as well as a kitchen and recreation facilities. As Cameron confirms, there was immediate interest in Wonowon Lodge, which led to contract bookings of rooms for companies working on various projects in the area.

With a newly upgraded and larger openconcept kitchen and recreation complex, this makes for a more pleasurable dining experience and stay. Other amenities

include a fitness room, on-site laundry services and a games area featuring pool tables, ping pong, and foosball. Along with housekeeping, Camco Ventures Inc. professionally prepares all meals daily, including health-conscious menu options to meet the needs of the camp’s array of clientele.

“As the demand in the industry is shifting toward executive suites as a minimum standard, we continue to evolve and upgrade our facility,” Cameron says. “We are confident there will be five to 10 years of future activity in the area. The long-term plan is to continue evolving our product and improving our services, making Wonowon Lodge the open camp of choice along the Alaska Highway.”

For more information, please visit them online at www.wonowonlodge.com. S

Servicing the Oil and Gas Industry for 20 Years

BC, SASKATCHEWAN, ONTARIO, ALBERTA • Isolation Valves • Actuation • Emission Compliance

• Plants & Facilities • Pipeline & Well Head • ESD’s & Rigs

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10415 Beaver Road | Fort St. John, BC | V1J 6H2 B.C. Oil & Gas Report • 2013 121

Index to advertisers Adair (Tom) Pilot Car Service............................... 22

Edge Electric & Controls..................................... 101

Northwest Tank Lines Inc..................................... 33

Akita Drilling Ltd.................................................. 55

Enform................................................................. 59

NOV Wilson Canada............................................. 76

Alpha Safety Ltd................................................ 103

EOS Pipeline & Facilities Inc................................. 84

Peregrine Pressure Testing Ltd............................. 15

Aluma Systems.................................................... 35

Fabcor 2001 Inc................................................... 4

Petro Canada | c/o Jan Kelley Marketing............. 27

Apex Technological Field Services..................... 119

Focus Corporation................................................ 16

Phoenix Rentals Ltd............................................. 11

Applus RTD.......................................................... 77

G.N.S. Industrial Trailer Services Ltd.................. 115

Praxair................................................................. 88

Aurora Park Inn & Suites...................................... 59

Gar-North Enterprises Inc.................................... 48

Progress Energy Resources Corp.......................... 90

BC Energy Conference.......................................... 63

Gas Field Innovators............................................ 81

Quality Mat Company.......................................... 85

BK Two-Way Radio Ltd......................................... 18

Gemini Helicopters.............................................. 39

Radar Road Transport Ltd.................................... 17

Black Gold Emergency Planners Inc..................... 22

Graham Construction..........................................IFC

Rosenau Transport Ltd....................................... 109

British Columbia Safety Authority....................... 10

Green Patch Environmantal Consulting............... 83

Safety Boss Inc................................................... 107

Brogan Safety.................................................... 117

Halo Environment.............................................. 105

Skybase Geomatics Solutins Inc........................ 111

Calfrac Well Services............................................ 58

Industrial Scaffold Services Limited.................... 65

Society of Petroleum Engineers........................... 49

Calhoun Superstructure....................................... 91

Initiatives Prince George...................................... 69

Specialized Tech Inc............................................. 79

Caliber Oilfield & Production Services Inc............ 87

Kendra’s First Aid................................................. 40

Step Energy Services......................................21, 25

Cambridge House International Inc..................... 61

Kitimat LNG......................................................... 18

Streeper & Sons Trucking Ltd............................... 26

Can-Am Geomatics.............................................. 13

KTIDS Northwest................................................. 41

Summit Liability Solutions.................................. 40

Canada Crane Services / Sarens Group................ 95

Livewire Automation Inc..................................... 37

Swift Specialty Services....................................... 89

Canadian Society for Unconventional Resources... 3

LN’s First Aid Services (2008) Inc......................... 70

Synergy Land Services Ltd................................... 57

Canasteel Rebar................................................. 116

Marmit Plastics Inc............................................ 102

T3 Energy Services............................................... 23

Canruss Medical and Safety Services................... 19

MCI Solutions...................................................... 26

TA Structures....................................................... 99

Chetwynd & Area Economic Development......... 31

Micro-Watt Control Devices Ltd........................... 30

TBD Consultants Inc............................................. 82

Compass Bending Ltd.......................................... 88

Muskwa Valley Ventures...................................... 80

Terrapro Group of Companies.............................. 97

COR Solutions...................................................... 84

Nira Resources / Alliance..................................... 12

Tervita................................................................OBC

D&D Insulators....................................................... 9

Nortech Business Solutions................................... 8

Thru Tubing Solutions.......................................... 71

DEL Equipment.................................................... 12

North Peace Communications............................. 32

TOG Systems Telecom Oil + Gas.......................... IBC

District of Tumbler Ridge....................................... 7

Northern Rockies Regional.................................. 29

Trans Peace Construction (1987) Ltd..................... 5

Diversified Transportation Ltd............................. 54

Northern Valve Services..................................... 121

V.E. Brandl Ltd................................................... 113

Drive Products / DOCAP....................................... 75

Northlands Water & Sewer Supplies Ltd.............. 43

William Scotsman of Canada Inc......................... 93

Please support the advertisers who help make this publication possible.

122 B.C. Oil & Gas Report • 2013

OUT HERE, THERE’S NO SUCH THING AS 9 TO 5.

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MICAH (COMMUNICATIONS FIELD TECHNICIAN, FAMILY MAN AND AVID GOLFER) PERFORMING A LATE EVENING INSTALL.

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SERVICING ALBERTA, BRITISH COLUMBIA & SASKATCHEWAN

For more information, visit our website: togsystems.ca

Or contact us directly: PHONE 780 356 3965 EMAIL info@togsystems.ca

HOW TO CLEAN UP IN THE ENERGY BUSINESS The short answer? Call Tervita. Our more than 4,000 men and women are uniquely qualified to help you minimize the environmental impact of your quest for resources while maximizing your returns. For 30 years we’ve been providing best-in-class environmental and energy services. From solid and liquid waste management to production and reclamation services, Tervita offers comprehensive and reliable solutions to support responsible development and help preserve our planet.

With an unwavering commitment to safety, we ensure not just compliance, but excellence. We maintain the industry’s largest network of waste recovery, treatment, and disposal facilities and more than 100 well servicing rigs ready to go at a moment’s notice to help you maximize productivity.

Visit tervita.com or call 1-855-TERVITA today. And get ready to really clean up.

A N O RT H A M E R I C A N L E A D E R I N E N V I R O N M E N TA L A N D E N E R GY S E RV I C E S

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