B.C. Oil and Gas Report 2012

British Columbia’s natural gas industry being driven

by LNG potential Encana introduces tool to manage hydraulic fracturing fluid additives Nexen pursues a top-tier shale gas play in northeastern B.C.

Publications mail agreement #40934510

Optimism and caution for the Horn River Basin Producers Group: Spring activity update

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British Columbia

Oil & Gas Report

B.C. Oil & Gas Report 2012

2012

Contents 11 12 14 16 22 24 26 29 32 34 36 38 40 42 44 46 48 50 52 54 56 58 60 64 66 70 72 74 76 80 84 86 90 92 94 96 100 102 103 104 106 108 110 112 114 115 116 118 120 121 122 6

Message from the editor – Shayna Wiwierski Message from the B.C. Premier – The Honourable Christy Clark Message from the Minister of Energy and Mines – Rich Coleman The structure of a leading regulator: The BC Oil and Gas Commission B.C. poised to benefit from natural gas: CAPP Encana introduces tool to manage hydraulic fracturing fluid additives Spectra Energy: Measures of success A potential game changer: Nexen Inc. A critical juncture for Canada’s natural gas industry Let’s not blow it: the B.C. Chamber of Commerce British Columbia natural gas industry being driven by LNG potential: SEPAC Rigs rethink site leadership: CAODC PSAC works to help improve industry image Creating a network and serving the market: the Society of Petroleum Engineers Optimism and caution for HRBPG: spring 2012 activity update Kitimat LNG: spring activity update Three reasons the B.C.-based business platform is essential for the B.C. oil and gas industry New guidance document helps oil and gas workers to prevent chemical hazard injury Opportunities are abundant in the natural resource-rich North Peace region Continued growth in B.C.’s Northern Rockies – where opportunity is at its peak CAPPA: proudly serving production accountants for over 50 years Advanced science and advanced protection with Petro-Canada lubricants Gemini establishes itself in Dawson Creek Bringing the energy to Dawson Creek Tumbler Ridge: Impressive opportunities Stikine Energy (TSXV:SKY): proximity proppants for Northeast British Columbia Have you considered an alternative safety approach?

Kamber’s “can do” attitude Hello, B.C. The changing face of geosciences in the 21st century How the oil and gas industry can use A/R financing to better manage cash flow Smart health and safety solutions with Jetsue Ventures Ltd. Petroleum technology research centre leads research into enhanced oil recovery SPE Canadian Unconventional Resources Conference WorkSafe BC and Alberta Occupational Health and Safety watch hot fuelling New regulations, new opportunities: pipeline integrity and risk management A safe and simple solution to a “chilling” problem Safety is a full-time job; don’t make it a part-time practice: K. Leer Enterprises Celebrating 20 years in service: Radar Road Transport Collapsible frac tanks better for the environment and cheaper to transport Coil goes live Beds for a booming business: Peace Energy Lodge Smokey Trucks series – size does matter Working together to protect the environment: Wide Sky Disposal 1989 Ltd. A good fit: Peregrine Pressure Testing Ltd. Setting the standard: T3 Energy Services Providing top-tier service to the region: J E Sellors Services Ltd. MPI’s top fill tank adaptor – changing landscapes of the chemical tank industry Volunteers are key to CAPLA’s success The oil and gas industry in North America: technology-driven consequences Index to advertisers

B.C. Oil & Gas Report • 2012

is published by: DEL Communications Inc. Suite 300, 6 Roslyn Road Winnipeg, Manitoba Canada R3L 0G5 President David Langstaff Associate Publisher Jason Stefanik Managing Editor Shayna Wiwierski shayna@delcommunications.com Sales Manager Dayna Oulion

Account Representatives Jennifer Hebert Gladwyn Nickel Mic Paterson Anthony Romeo Colin James Trakalo Production services provided by S.G. Bennett Marketing Services www.sgbennett.com art Director Kathy Cable Layout & Design Dana Jensen Advertising art Julie Weaver © 2012 DEL Communications Inc. 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 publisher­ in no way guarantees nor warrants­the infor­ ma­tion­and 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.

Publications Mail Agreement #40934510 Return undeliverable Canadian addresses to: DEL Communications Inc. Suite 300, 6 Roslyn Road Winnipeg, Manitoba R3L 0G5 Email: david@delcommunications.com

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MESSAGE FR0M THE Editor Shayna Wiwierski

T

here is always something new go-

procurement opportunities, and encour-

tive articles from a number of associa-

ing on within British Columbia’s

agement of the energy section, there are

tions across B.C. and Canada, this year’s

oil and gas market. Fresh from re-

also a number of economic benefits, in-

ceiving their 20-year export licence from

cluding opportunities for First Nations

the National Energy Board last fall, Kiti-

economic development.

mat LNG partners Apache Canada Ltd.,

This year’s edition of the B.C. Oil and

specialize in the industry.

EOG Resources Canada, and the Encana

Gas Report features a number of articles

I truly hope you enjoy the 2012 B.C.

Corporation are making headway on the

that speak about the Kitimat LNG facil-

Oil and Gas Report and if you have any

liquid natural gas (LNG) facility located

ity, as well as other initiatives and proj-

in Bish Cove on Haisla First Nation land.

questions or comments, please send

ects going on in Northeastern B.C. in the

The project, titled Kitimat LNG, is

key natural gas plays including the Horn

important for a number of reasons. In

River Basin and the Montney Basin. In

addition to including easy access for

addition to activity updates from major

Shayna Wiwierski

supply, more job creation for the area,

players in the area, as well as informa-

Shayna@delcommunications.com S

edition of the magazine features articles from companies located in the area that

them my way.

There is always something new going on within British Columbia’s oil and gas market.

B.C. Oil & Gas Report • 2012

11

Message from the B.C. Premier The Honourable Christy Clark

T

his is an exciting time to be working in the oil and gas industry. We are seeing companies and governments look for new and innovative ways to expand operations and create jobs, but at the same time making sure we remain committed to high environmental standards and sustainability.

B.C.’s natural gas assets will support long-term activity and maintain the benefits of an active industry – stable jobs, government revenues, prospects for the service sector, and economic activity in our rural northeast communities. Historically, natural gas was not well suited for export unless it was shipped by pipeline. Today, new technologies can turn it into LNG (liquid natural gas) that can be loaded onto tankers bound for foreign markets like Asia or used domestically as transportation fuel.

Global trade in LNG doubled between 2000 and 2010. It’s expected to increase by another 50 per cent by 2020 and B.C. is ready to take a healthy share of that market. As Premier, I have committed to

having at least one LNG pipeline and terminal in operation by 2015 and three in business by 2020. LNG offers advantages for communities all across the north and the benefits of development will flow to the whole province through revenues that fund social services, skills training, and job creation.

We are putting a greater emphasis on project decision-making processes by ensuring government can give timely decisions on permitting and get out of the way when necessary without compromising environmental regulations and expectations. The province will continue to strengthen collaboration with First Nations, industry partners, and other levels of government to define more effective working relationships and create more certainty for industry. We will work closely with industry to ensure our postsecondary education system is able to deliver the targeted training necessary to grow the oil and gas industry.

B.C. has a long history of safe and responsible oil and gas development. We

are proud of the safety measures and regulations we have in our province. I’m encouraged that industry continues to support B.C.’s attentiveness to openness and transparency. In September 2011, I announced FracFocus.ca, a website that allows companies to disclose their hydraulic fracturing activities. The website allows visitors to search for hydraulic fracturing activity locations and detailed information about the practices and additives used for these operations.

We will work closely with industry to ensure we are meeting the needs of the market and creating well paying and stable jobs that help support B.C. families. S

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Message from Minister of Energy and Mines Rich Coleman

A promising future

T

his is an exciting time for British Columbia’s oil and gas sector. This is where some of the

world’s most promising resource areas are found; where modern technology is being pioneered, and where a new industry – liquefied natural gas – is on the verge of creating even more opportunity.

B.C. provides many advantages for oil and gas companies, including geographical proximity to Asia. Our province provides investors with a supportive regulatory and fiscal framework. We also have a long history of safe and responsible natural resource development.

Our potential for bigger and better things has never been more obvious.

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the BC Jobs Plan and our commitment to liquefied natural gas. On top of that, we developed a forward-looking Natural Gas Strategy and a complementary plan for B.C.’s liquefied natural gas industry.

Our goal is to establish B.C. as a competitive, clean natural gas producer on a global scale, with a liquefied natural gas export industry leading the way to longterm prosperity for our province. We are well on our way, with multiple investors coming forward and showing interest in B.C.’s natural gas as the preferred choice for exporting to Asia.

This growth will support businesses and create jobs. Based on our current estimates, reaching our goal of three liquefied natural gas facilities by 2020 will create 800 long-term jobs; as many as 9,000 new construction jobs, and thousands of spin-off jobs in areas such as transportation, engineering, and environmental management. Jobs will also be evident in the exploration and production activities taking place in the northeast corner of the province which will be supporting liquefied natural gas projects.

Job creation is essential, and so is preparing British Columbians for employment opportunities. We are supporting skills training and focusing on local needs. Over $500 million is being provided annually for labour market and training programs through the BC Jobs Plan.

Through a Labour Market Partnerships program, we are creating a stakeholder-validated natural gas workforce strategy and action plan. This plan – developed by industry, local communities, and training providers – will be used to

direct and support skills and training to address needs for current and future natural gas industry demands.

We are also investing in projects like Regional Workforce Tables. These initiatives ensure the Province is providing skills and trades training that align with specific regional demands. This program in particular brings leaders, industry, and stakeholders together to discuss labour priorities.

The Industry Training Authority is the provincial Crown agency responsible for overseeing B.C.’s industry training and apprenticeship system. This agency continues to be supported with over $100 million annually. In fact, over 32,000 apprentices are currently in the system which is double the number of registered individuals in 2004.

In addition, the Oil and Gas Industry Training Centre of Excellence, located in Fort St. John, continues to lead and develop oil and gas training and education programs directly to 180 students each year.

Yes, this is definitely an exciting time.

Economic activity will be the result of the growth taking place in B.C.’s natural gas sector. Trained, skilled British Columbians are poised to benefit with new jobs.

This is the time for all of us – industry, governments, local communities, First Nations – to take advantage of our potential and build a stronger future for British Columbia.

For information on oil and gas initiatives, visit: www.gov.bc.ca/ener S

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The structure of a leading regulator The BC Oil and Gas Commission models a single-window structure and an active role in the project lifecycle

T

he BC Oil and Gas Commission (Commission) has attracted national and international attention as a leading regulator of oil and gas activities. While numerous components go into being an effective regulator, two foundational aspects are critical to the Commission’s structure. The Commission has an active role in the complete lifecycle of oil and gas projects, and it also benefits from a unique single-window structure. Both of these back the Commission’s commitment to the protection of the public’s safety, conservation of the environment, as well as building strong relationships with stakeholders.

The Commission reviews applications on behalf of the provincial government for all activity including geophysical surveys, wells, access roads, pipelines, and facilities located on private land, as well as Crown land, and must also ensure that project sites are remediated to their original habitat. Having an active role in the entire lifecycle of an oil and gas activity – from the application stage to decommissioning – streamlines all interests in a project into a complete, comprehensive process. This involves the pre-application and application phases, consultation with stakeholders and First Nations communities, environmental reviews and compliance, and enforcement processes that hold industry accountable. These accountabilities carry through to the decommissioning and remediation of all approved projects.

The Commission’s active role in the lifecycle of an oil and gas project begins at the pre-application stage. Even 16 B.C. Oil & Gas Report • 2012

B.C. Oil and Gas Commission Fort St. John office. before an application is entered into the Commission’s review stream, staff at the front-end ensures the application is completed correctly and all initial requirements have been satisfied. When all requirements have been met, the application continues to the review process, which includes consultation with First Nations and landowners.

Applicants are required to conduct consultation and notification with stakeholders whose quality of life may potentially be impacted by activities. Requirements for this type of engagement are outlined in the Consultation and Notification Regulation under the Oil and Gas Activities Act (OGAA), and are intended to identify and resolve any concerns regarding noise, traffic, dust, and odour.

The Commission then determines if the applicant has provided adequate consultation and notification to the stakeholders and evaluates if the appropriate measures were taken to address all concerns.

Further facilitation is recommended if the Commission decides it is required.

In applicable cases, a review package must also be distributed to the appropriate First Nations communities, which are based on consultation boundary maps.

Designated Commission staff review the applications and work closely with First Nations communities. Their role is to help minimize and mitigate any potential adverse effects the oil and gas activity may have on treaty and aboriginal rights.

As the application enters the full review stage, focus is placed on areas such as potential archaeological impacts, as well as possible conflicts in tenure or land use designations. A complete review is done to confirm the application abides by all regulations, taking into consideration forestry issues, impacts on agricultural land, wildlife habitats, streams, lakes, and domestic water use. The impact on resource features such as recreational sites and trails are also assessed. Before

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the application review stage is complete, an engineering review is conducted to ensure all oil and gas activities will be safe and any regulatory requirements related to the design, construction, and operation of the well, pipeline, or facility will be met.

Having taken all of these aspects into consideration, a statutory decision maker must make a final determination. The outcome of the decision falls into one of the following options: an application can be approved as submitted, approved with extra conditions, additional revisions requested or, if requirements and regulations are not met, the issuance of an approval can be refused. For approved applications, the project lifecycle then moves onto the construction and operation phases, which are monitored by the compliance and enforcement division, and often include the expertise of the engineering division.

The Commission’s hands-on approach ensures oil and gas operators

The BC Oil and Gas Commission (Commission) is committed to the protection of the public’s safety, conservation of the environment, as well as building strong relationships with stakeholders. comply with regulations in the pre-construction stage, construction stage, and finally, reclamation and abandonment stages. Commission inspectors monitor the regulatory compliance of each site throughout its lifetime. The frequency of inspections is determined by a risk-based model that takes into account the history of the operator, the proximity of the site to residents and sensitive environments, and any inherent risks associated with that site. Complaints from the public and reports of incidents at a given site

also prompt inspections. Should an operator be found to be in non-compliance and measures are not taken to bring the site back into compliance, enforcement actions are considered by Commission staff.

The duration of the lifecycle of each project may vary greatly, but when an oil and gas site is no longer productive, the operator is responsible to restore the surface of the site to conditions that existed before development began. Once the Commission has determined all regulatory requirements under OGAA have been met, a Certificate of Restoration is issued to the operator.

The Commission’s single-window structure is another important aspect of being a leading regulator, and in 1998 the Commission was established under this structure to oversee oil and gas operations from exploration to reclamation. This was a new concept in the regulation of natural resources as one agency, the Commission, was given au-

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thority to oversee industry activity formerly overseen by the Ministry of Energy and Mines, the Ministry of Environment, Lands and Parks, and the Ministry of Forests. Authorities were delegated under the Petroleum and Natural Gas Act, the Pipeline Act, and others such as the Forest Act and the Water Act. The Commission’s authority to issue a Master Licence to Cut (MLTC) is an example of authority granted under Section 47.4 of the Forest Act. Any activity taking place on Crown land designated under one of the provincial forest districts that includes the removal of timber requires authorization under the MLTC. By having the authority granted to the Commission, a licence to cut is issued during the early stages of the application process and eliminates the need for applicants to work through two separate agencies.

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B.C. poised to benefit from natural gas

By Tom Huffaker, vice-president of the Canadian Association of Petroleum Producers (CAPP)

B

ritish Columbia is poised to play a pivotal role as Canada moves to become a supplier of natural gas to the global market.

This is a tremendous opportunity for British Columbia. With it comes the responsibility to produce this cleanestburning fossil fuel safely and reliably.

Two projects – Kitimat LNG and the BC LNG Export Co-operative LLC – received regulatory approval to export liquefied natural gas from terminals near Kitimat on the west coast. Others are under consideration by project proponents.

In statements by the premier and the recently released natural gas and LNG strategies, the B.C. government has formally recognized the important role natural gas plays in the provincial economy, and opportunities to align growth in natural gas development and markets with provincial economic and environmental priorities. A key benefit should be job creation.

This is significant for several reasons.

First, they provide Canadian natural gas producers access to new markets.

As the world’s third-largest producer of natural gas, Canada more than meets domestic demand. About half of our production is available for export to the U.S. Recent technological advances, specifically in shale gas production, however, have more than doubled the technically recoverable resources in the U.S. As a result, the amount of Canadian natural gas exported to America is decreasing sharply.

That is partly why Canadian producers are exploring new markets, specifically the major Asian economies such as China, Japan, and South Korea. To put 22 B.C. Oil & Gas Report • 2012

this into perspective: China’s demand for natural gas is growing five per cent annually, and the International Energy Agency (IEA) expects global demand for natural gas to increase by 55 per cent by 2035, as we enter what the IEA has coined the “golden age” of natural gas.

Second, there are significant environmental benefits to be gained from broadening the uses of natural gas domestically and abroad. Cambridge Energy Research Associates calculates that natural gas burns 50 per cent cleaner than coal. It also emits far less nitrous oxide, sulphur dioxide, heavy metals, and other toxic substances than coal when combusted.

The very nature of natural gas as the cleanest-burning fossil fuel means it can play an important role as Canada moves toward an overall energy mix with lower carbon emissions. There are significant opportunities to broaden domestic use of natural gas, particularly in transportation and power generation. Also, by exporting Canadian natural gas we can help displace less clean, less safe energy sources that some countries use at present.

Third, natural gas drives economic growth provincially and at the community level because it creates jobs and significant tax and royalty revenues in production jurisdictions.

In 2010, B.C.’s natural gas industry directly employed 12,000 people. By 2035, direct employment in B.C.’s natural gas sector is expected to reach 40,000 people, according to the Canadian Energy Research Institute.

These jobs support British Columbia families, local businesses, and communities. So it is not surprising that proj-

ects like Kitimat LNG, which will be supplied from the natural gas plays in the northeastern part of the province, garner widespread support.

In the broader provincial context, natural gas revenues are rapidly becoming the B.C. government’s most important source of natural resource revenue. In 2013-2014, the government’s fiscal plan estimates natural gas royalties will reach $652 million, compared with $557 million in revenues from forestry. Sales and leases of Crown land drilling rights are a significant additional revenue source, contributing an estimated $882 million in the current fiscal year and $887 million in 2013-2014. The province uses these funds for health care, education, and social services for British Columbians.

As demand for natural gas increases, more production will come from geological formations such as shale rock.

Our research shows a majority of Canadians have a positive or neutral impression of natural gas but questions about how natural gas is extracted from shale rock.

Our answer is that robust regulations – a provincial responsibility – are in place or being developed, and that industry best practices ensure resource development risks are managed.

The track record of Canada’s natural gas producers in jurisdictions with an established energy sector is one of safe and reliable operations. More than 175,000 wells have been hydraulically fractured in B.C. and Alberta over the past 60 years without a single documented case of harm to groundwater, according to the regulators in these provinces.

There is also a growing body of scientific research that shows hydraulic fracturing poses no risk to groundwater. For example, the Energy Institute at the University of Texas, in a recent study of three major gas fields in the U.S., concluded there is no evidence of groundwater contamination from hydraulic fracturing.

And MIT, in a 2010 study, said “with over 20,000 shale wells drilled in the last 10 years, the environmental record of shale gas development is for the most part a good one.”

The success of safe hydraulic fracturing operations in Canada is the result of a robust regulatory system that is

keeping pace with evolving technology, and the result of operating practices developed and implemented by the welltrained professionals who work in our industry.

The Canadian Association of Petroleum Producers’ operating practices for hydraulic fracturing, released in January, are designed to make industry activities more transparent to all Canadians. The practices state we will support the disclosure of fracturing fluid additives and the development of additives with the least environmental risks.

Public disclosure of fracturing fluid additives is mandatory in British Columbia.

Other provinces, including New Brunswick, are working on augmenting existing regulations for the energy sector, and we expect our operating practices to complement future regulatory requirements.

We welcome and support these efforts.

Canadian natural gas is driving economic growth in British Columbia and contributing to energy security and reliability in North America. Natural gas is developed responsibly and it can be the foundation of a lower carbon energy mix in Canada.

Natural gas is a smart energy choice for Canadians. It is the right fuel at the right time. S

B.C. Oil & Gas Report • 2012

23

Encana introduces tool to manage hydraulic fracturing fluid additives Encana operations in Farmington, British Columbia.

W

ith unconventional resource development ramping up across North America, the process of hydraulic fracturing is facing public scrutiny. The use of chemical additives in the process has generated a significant amount of interest from concerned stakeholders and continues to generate concerns on perceived threats to the environment.

Although the energy industry has numerous measures in place to ensure the safe handling and use of the additives used in hydraulic fracturing, continuously improving these safeguards is critical in order to address the concerns of the public and ensure efficient and safe operations.

In order to address some of those stakeholder concerns, Calgary-based Encana Corporation has recently developed and implemented its Responsible Products Program. The risk-based program, which is specifically designed to manage the chemical products used in Encana’s hydraulic fracturing operations, has been introduced throughout the company’s operations in both Canada and the United States.

“We understand that our stakeholders want more information on how we are mitigating our environmental impacts and ensuring that we operate safely,” says Richard Dunn, Encana’s vice-president, Regulatory & Government Relations. “Our Responsible Products Pro-

24 B.C. Oil & Gas Report • 2012

gram helps ensure that the hydraulic fracturing fluid products we use in our operations are safe, effective, and environmentally responsible.”

Encana’s program, which began development in 2010, assesses and categorizes hydraulic fracturing fluids used in the company’s operations for effectiveness and any potential health, safety and/ or environmental impact. After each product has been carefully assessed, the company determines whether additional operational practices or controls are needed, or if use of the product should be discontinued altogether.

To ensure that all of Encana’s product assessments are thorough, objective, and accurate, they developed the program’s assessment tool in conjunction with third-party toxicologists. The tool uses government databases and information from Environment Canada, the European Union, the U.S. Environmental Protection Agency, and the American Conference of Governmental Industrial Hygienists as the basis for its classification.

Encana prohibits the use of any hydraulic fracturing fluid products containing diesel, 2–Butoxyethanol (2–BE) or benzene and requires suppliers to comply with this prohibition. Additionally, none of the hydraulic fracturing products Encana uses contain arsenic, cadmium, chromium, lead, or mercury.

Encana is committed to ensuring that

none of these constituents will be used in their hydraulic fracturing operations in the future.

The product assessment follows a four-step process, and all of Encana’s hydraulic fracturing fluids are screened for their potential impact to human health or the environment using generally accepted toxicological criteria. The program’s process involves collecting product data and information about the product mixture (primarily from Material Safety Data Sheets), assessing the products using the Responsible Product Assessment Tool, classifying the products into one of three categories, and identifying and implementing any required operational practices and controls to allow for the responsible use of the products (or eliminating the products from use).

In July 2011, Encana shared the Responsible Products Program with the Canadian Association of Petroleum Producers (CAPP) as a potential tool for industry to help proactively address stakeholder concerns related to the chemicals used in hydraulic fracturing operations.

“We are going to continue to improve our environmental performance as a company and an industry – our stakeholders expect nothing less,” Dunn explains. “We will continue to improve. It’s not only the right thing to do; it’s simply good business.” S

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Spectra Energy: measures of success

By Rosemary Silva

S

ome would say success is measured by awards, accolades, even popularity. Here at Spectra Energy, our benchmark comes in the form of meeting and exceeding our stakeholders’ needs.

More specifically: it’s our ability to connect B.C.’s natural gas sources to growing market opportunities, and in turn, fuel long-term economic prosperity.

Achieving operational excellence We are proud of our excellent track record. We’ve spent 55 years building, operating, and maintaining more than 2,900 kilometres of transmission pipelines in B.C., connected to 3.3 Bcf/d of raw gas gathering and processing facilities. These assets extend from the Canada/U.S. border to as far north as Fort Nelson and beyond. While looking forward to continued growth, we never take our eye off day-to-day operational excellence. Our highest priority is the health and safety of our people and the protection of our assets and environment. We aim for sector-leading high performance and strive to continually improve our level of reliability, stewardship, and customer service.

Delivering long-term value Spectra Energy offers the advantage of connection – to supply basins…to demand…and to future opportunities. In our gathering and processing business— which is the largest of its kind in Canada—we have 16 processing plants in operation. They are primarily concentrated in northeastern B.C. and northwestern Alberta, with two more under construction and a third pending reactivation. In our B.C. pipeline business, which has formed the ‘backbone’ of the province’s natural gas industry since 1957, we serve most of British Columbia and half of the U.S. Pacific Northwest, with connections into Alberta and beyond. Not 26 B.C. Oil & Gas Report • 2012

only does that provide excellent coverage to traditional markets, it also places Spectra Energy in a premium position to help satisfy growing demand from new markets in the Asia-Pacific. We have great confidence in our ability to unlock additional longer-term value by leveraging our expansive asset portfolio with a proven ability to execute on our commitments.

Committed to customer responsiveness Through decades of establishing, maintaining, and extending routes for our pipelines and plant facilities, Spectra Energy’s integrated system has become integral to the success of B.C’s natural gas industry. We are committed to additional expansion opportunities to serve our customers’ evolving needs.

A few years ago, we began a significant expansion program to respond to increasing gathering and processing demand. By the end of 2012, we will have invested about $1.5 billion in expansion capital on northeast B.C. In the Fort St. John and Peace River Arch areas, where the vast Montney shale play lies, our Bissette pipeline was completed last year and the Dawson Gas Processing Plant is nearing completion.

When the plant is operational in the second quarter of 2012, its addition will give the company a total of 1.5 BCf/d processing capacity in the Montney area.

Our Jedney and Highway plants and associated gathering systems are receiving de-bottlenecking improvements in 2012, and 2013 will see a planned reactivation of our Aitken Creek gas plant.

Our four-year multi-phase Fort Nelson expansion program is also nearing completion, and by the end of 2012 we will successfully bring into service its final component – the new 250 MMcf/d Fort Nelson North Processing Plant. To-

gether with existing area infrastructure, this expansion places Spectra Energy in lead position within the Horn River Basin, having more than t 1.2 Bcf/d of raw gas processing capacity and associated gathering pipeline in the Fort Nelson area.

Looking ahead, we are advancing on several opportunities to unlock liquids value for Montney producers, which may lead to additional investment opportunities in the future.

To support this gathering and processing growth, we are also executing on over $400 million of pipeline expansion projects to provide Horn River and Montney producers access to increased supply diversity and market optionality.

An expansion of the T-North Pipeline system is currently underway. The first phase, which increases capacity by 170 MMcf/d and provides a new 500 MMcf/d connection into the Alberta market, is almost complete. To date we have completed the addition of 24 kilometres of 36-inch looping between Compressor Station N4 and Compressor Station N5 on the Fort Nelson Mainline, brought into service a new Solar Titan 250 compressor unit at Compressor Station N4, and finished construction of the 20 kilometre 36-inch Stewart Lake Pipeline lateral extending from the Fort St. John Mainline southeast to NOVA Gas Transmission Limited’s Groundbirch Receipt Meter Station. We are now focused on bringing into service the Sunset Creek Compressor Station at the southern end of the Stewart Lake Pipeline by mid-year.

Our second project, also in the T-North system, will build a further 360 MMcf/d of capacity to serve several Montney producers, and will be in service at the end of this year.

There is another market dynamic at play now in the province: liquefied natural gas (LNG), for which Spectra

sponsiveness and responsible resource development with a profound sense of environmental stewardship, and an eye toward long-term sustainability. Our performance stands on its own. We are proud to be named once again to the Dow Jones Sustainability World and North America Indices and, recognized as the top energy company on the Car-

Worker at Spectra Energy’s Pine River Plant.

bon Disclosure Project’s Carbon Disclosure Leadership Index. We also placed within the top 20 on the 100 Best Cor-

Energy’s premium position is ideal to

and construct new facilities to the high-

help develop B.C.’s unconventional gas

est standards. We have a long-standing

resources and facilitate access to markets

record of safety and reliability, sup-

in the Asia-Pacific region. Spectra Ener-

ported by a $220-270 million annual

World’s Most Ethical Companies list.

gy’s integrated network is ideally suited

investment in maintenance capital. We

And while accolades and honours

and expandable to connect growing sup-

also know that our customers rely on us

are commendable, it is the decisions

plies to virtually any LNG project along

for continuous service, and in 2011 we

we make every day which illustrate the

B.C.’s West Coast.

proudly delivered over 99 per cent reli-

importance we place on balancing eco-

ability.

nomic, environmental and social values

Leading in safety & reliability

porate Citizens list, published by Cor­ porate Responsibility magazine, and were listed in the Ethipshere Institute’s 2012

and practices. We maintain high stan-

We are keenly aware that our license

Excelling in environmental

dards for safe and reliable operations,

to operate rests with the public’s trust

stewardship & sustainability

we greatly value our employees, and we

in our ability to manage existing assets

At Spectra Energy, we pair market re-

work hard to protect the environment.

B.C. Oil & Gas Report • 2012

27

Focused on stakeholder engagement

The Anthony Herman Gas Control.

With growth comes responsibility – responsibility that begins well before a project’s launch and continues throughout its operation as we contribute to the economic vitality and social fabric of the communities we serve. In fact, that‘s where our greatest asset lies: our 850 dedicated employees who live and work within the communities where we operate. From operations to maintenance, land management to capital projects, community investment or

community

Spectra

Energy

relations, employees

reach out to our stakeholders every day and share our longterm commitment to British Columbia. S

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

Third-party evaluators have estimated that Nexen’s Horn River and Cordova

lands hold between four trillion and 15

more than double the company’s proved

trillion cubic feet of recoverable con-

reserves.

tingent resources, while its Liard lands

“Shale gas complements Nexen’s oil-

contain an estimated five to 23 trillion

weighted portfolio and we believe it can

cubic feet of prospective resources. Tak-

be a significant source of growth in the

en together, Nexen’s B.C. shale gas lands

future,” says Ron Bailey, Nexen’s senior

potentially contain enough resource to

vice-president, Natural Gas (Canada)

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ship, and research of alternate markets

“But in an environment of relatively

to maximize the value of the resource.”

low natural gas prices, shale gas must

Nexen continues to achieve industry-

compete for capital with other oppor-

leading results in the Horn River Basin,

tunities. For now, we are prudently pur-

where the company completed a nine-

suing our Horn River drilling program,

well pad in 2011 and expects to bring

while focusing on cost-reduction, supe-

its first 18-well pad on stream later this

rior execution, environmental steward-

year. By the end of 2012, production ca-

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pacity from Nexen’s Dilly Creek facility is expected to reach 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 excellent land tenure, 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 underscored by the joint venture agreement announced in 2011 with 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 will remain 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 owns large LNG projects internationally and the company is currently building a regasification terminal in Japan. Nexen, INPEX, and JGC intend to jointly investigate the feasibility of a potential downstream project including LNG exports.

At the same time, Nexen is starting to apply its shale gas expertise in international markets where gas prices are higher. In Poland, Nexen entered a joint venture in 2011 to explore in one of the most significant unconventional resource plays in central Europe.

In Colombia, Nexen has begun a drilling program near Bogota, the country’s largest gas market.

Technology has been key to unlocking the worldwide potential of this resource. Shale gas is natural gas that is produced in an “unconventional” way.

The gas is tightly locked in very small spaces within the shale rock formation.

To access it, Nexen uses advanced technology to horizontally drill and crack

(fracture) the gas-bearing zones. The fractures within the shale release the gas, which is then produced in the same way as “conventional” natural gas.

Horizontal drilling technology utilizes a flexible drilling pipe that “bends” into a horizontal position parallel with the resource zone. This process allows multiple wells to be drilled from the same drilling pad, thereby reducing land disturbance. Hydraulic fracturing — sometimes called “fracking” — is the process of using high-pressure fluid to crack the shale rock formation. The fluid Nexen uses when fracking is made up of approximately 99.5 per cent water and sand, with the remainder consisting of chemicals added to enhance the production process.

Nexen is making impressive strides in demonstrating the cost-effectiveness of shale gas drilling. At Horn River, the company has reduced its cost per frac

of surface spills of wastewater by inject-

to use saline water as an alternative to

by about 66 per cent since 2009, while

ing it deep underground where it can be

fresh water in shale gas production.

simultaneously improving production

safely stored.

“We plan to be a responsible ener-

rates per frac. Bailey says Nexen recog-

Nexen conducts comprehensive wa-

gy developer in northeastern B.C. for

nizes it’s not enough to make shale gas

ter availability and water quality moni-

many years to come,” observes Bailey.

production cost-effective — it must also

toring near its Dilly Creek operations

“We want to make sure we get it right

be done safely, reliably, and with mini-

and shares that data with regulators.

from the start when it comes to safely

mal impact on the environment.

The company is also advancing testing

and responsibly unlocking this resource

“Technology has enabled the respon-

of new technology that could enable it

base.” S

sible 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

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31

A critical juncture for Canada’s natural gas industry

T

he spot price of North American natural gas recently hit a 10-year low at $1.95 and many were asking what’s next for Canada’s natural gas industry? It is quite possible we may see natural gas prices at $1.50 before we see sustained prices above $2. But despite low prices, the opportunity, and perhaps necessity for Canada, is to invest in connecting their vast natural gas resources into an international distribution network has never been greater.

The key point is that natural gas is going global. And unless Canada is connected into the global natural gas market with east-west pipelines and Liquid Natural Gas (LNG) export facilities, it simply will not be able to compete in the global natural gas business and may in fact be putting the industry at risk.

32 B.C. Oil & Gas Report • 2012

Historically, natural gas was distributed primarily through pipelines. Canada was fortunate to share borders with the U.S. which was the largest customer for Canadian natural gas exports. The pipelines provided a long-term low-cost distribution channel that made Canada’s natural gas the most cost effective for U.S. consumers. However, a global LNG distribution network is emerging and growing.

Other natural gas producing countries have invested heavily in pipeline infrastructure and LNG export facilities to allow natural gas to become a portable, mobile commodity that can be shipped anywhere in the world, which is an advantage that oil has had over natural gas for years.

Over the last five years the abundance of shale gas in the U.S. (and Canada)

By Jay Roberge

has fundamentally changed the North American gas market, and then in 2009 the U.S. surpassed Russia to become the largest producer of natural gas in the world. America is now moving forward with becoming an exporter of natural gas with the approval of Cheniere Energy Inc.’s Sabine Pass LNG export terminal in Louisiana. There are another seven such facilities under review according to the Department of Energy. Not all are expected to get approved.

Like many natural resources, the Asian market is the target customer. The basic economics are simple. While spot prices for North American natural gas are at 10-year lows, the same gas can be sold in Japan for $19. Japan, the world’s largest importer of LNG at approximately 71 million tons (8.52 bcf/d), is nearly

31 per cent of all global LNG imports.

Second is South Korea at 34.5 million tons (4.14 bcf/d), nearly 15 per cent of global imports, followed by Spain. While the North American market seems low, the international – or more specifically – Asian market is growing and shows no signs of slowing down.

With the U.S. flush in natural gas and becoming an exporter, Canada loses a major customer and makes it a necessity for Canada to have alternative supply channels to the international marketplace. The opportunity is a more robust distributed industry that creates jobs for Canadians, provides best pricing by connecting to a competitive global marketplace, and generates wealth in the country.

At present, Canaport LNG’s receiving and re-gasification terminal at Saint John, New Brunswick is Canada’s only operational LNG terminal. The Kitimat LNG project is a three-way joint venture between U.S. energy companies Apache Corp. and EOG Resources Inc., along with Canadian gas giant Encana Corp.

The Kitimat LNG facility is still pending final approval on construction, but site clearing has been completed. The company is targeting 2015 as its first LNG shipment, with a per annum capacity of five million metric tons of LNG. The other two proposed LNG facilities for the B.C. coast (Westpac LNG; Teekay Merrill Lynch Export) have been cancelled, leaving Kitimat LNG as the only Canadianbased west coast option on the table, which is a critical link to an international market.

The urgency here is real. Export completion is not just from the U.S., but also Australia where there are plans for investing $200 billion of plans to build numerous LNG export plants that would triple Australia’s exports to the same customers Canada is targeting. But according to industry officials, Canada has an advantage because shipping times from Kitimat to buyers in Japan, South Korea, and Northern China are shorter, and provide a cost advantage with lower transportation costs.

Every country in the world has recognized the full value of natural resources and the opportunity in taking these raw materials downstream into value-added products creating new jobs and wealth.

Having a LNG export facility in place is part of this process of value added and a necessary part of connecting into the international marketplace. If Canada misses this opportunity, LNG capacity will be built in the U.S., and Canadian natural gas will be sold to American LNG facilities for processing and shipping to Japan for $19.

Granted these LNG facilities are expensive (Kitimat LNG is estimated at C$5 billion), but the long term implications would dictate that it is in Canada’s best strategic interest to make this investment.

The final decision to go forward with construction of the Kitimat LNG facility is still pending. A decision is expected by its ownership group sometime soon and will not necessarily be in the best strategic interest of Canada, but the economic interest of the partnership group. S

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33

Let’s not blow it

By John R. Winter, president & CEO of the B.C. Chamber of Commerce

O

ur province, indeed our whole continent, is on the verge of a new, cleaner energy

globally significant energy superpower.

questions regarding the environmental

This new gas source can provide

safety of fracking. Regrettably, some

thousands of jobs, billions of dollars

jurisdictions, in Canada and elsewhere,

future. The technical revolution that

of business opportunities, and millions

seemingly unsure of the technology,

has led to the production of vast new

of dollars of much-needed government

have introduced exploration moratoria

supplies of unconventional gas is a

revenues.

that only serve to reinforce the negatives

truly remarkable achievement, one that

The task for British Columbia and

conveyed by such stories.

will see natural gas finally come to play

its

Our task then is great and our time is

its long hoped-for role in our country’s

potential is to avoid being placed

short.

energy mix.

behind a negative public opinion

The petroleum industry can play a

These new quantities, at the lower

curve and it’s a task that will become

useful role here by presenting both

prices they deliver to the market,

increasingly difficult if we don’t move

its commitment to best practices and

will once and for all make natural

soon. And move smartly.

its estimates of what unconventional

gas a reliable alternative to coal; will

The current technology is proven

gas development can mean to the

provide a source of clean electricity

and used around the world, and other

B.C. economy. And industry will need

to our neighbours to the east and to

countries are looking to Canadian

to continue to work hard to get the

many American states; and, will propel

companies for technology and best

governmental approvals required, to

Western Canada into becoming a

practices. Yet we read far too often of

help the Crown meet its duties to consult

enormous

unconventional

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Revenues from this development are immense – going a long way towards assisting the challenges we face in healthcare, education, and social services. Too many of us seem

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Energy!

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ï Located at Mile O on the Alaska Highway, hosting 320,000 visitors per year headed for Alaska. ï Home of B.C.'s first wind park - AltaGas' 102-MW Bear Mountain Wind Park, located near Dawson Creek, is British Columbia's first fullyoperational wind park. In October 2009 the Park was commissioned and fully connected to the B.C. power grid. Today it delivers enough clean, renewable electricity to power most of B.C.'s South Peace region. The power from the project is sold to BC Hydro under a 25-year contract.

Bear Mountain Wind Park features a single row of 34 3-MW Enercon E-82 wind turbine generators. Each turbine is 78-metres tall to the hub. The turbines are placed at minimum, 160-metres apart along the ridge of Bear Mountain. The site, which covers approximately 25 hectares, is still used for cattle grazing and by the public for hiking, snowmobiling, cross country skiing and other recreational activities. ï Named Canada's first Solar City June 2012. ï The City of Dawson Creek Water Reclamation Plant produces over 4000 cubic meters/day of reclaimed water for municipal and industrial use; 3400 cubic meters/day is provided to Shell Canada for fracking use.

Shell Canada provided the majority of funding in exchange for access to a 10 year supply of the reclaimed water. ï 2011 Energy & Climate Action Award winner in recognition of Carbon Fund Policy, integrating energy/climate planning into community planning processes, development, and collaborative strategies, demonstrating leadership and to facilitate further emissions reduction actions. ïHome of the South Peace Community Multiplex including the EnCana Events Centre, hosting acts from KISS to Alan Jackson and MAMA Mia

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www.dawsoncreek.ca B.C. Oil & Gas Report • 2012

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First Nations, and to demonstrate sound corporate responsibility.

Government agencies can, through the provision of clear, unbiased and publicly available research about the operations and the impacts of unconventional gas development, provide the public with the information necessary to effectively engage in the debate about the future of this energy source.

This research could usefully focus on these five areas: surface and ground water protection; air emissions related to volatile organic compounds; greenhouse gas emissions from the production and transport of natural gas and its methane content; community infrastructure impacts including road damage and waste treatment; and the mapping of subsurface structures to better understand and plan for fracking and subsequent wastewater injection.

We need to look no further than the recent groundwater research carried out

by Geoscience BC for a model of how we might proceed.

The job before us is, admittedly a tall order but without access to credible science, the debate over our natural gas future will be characterized by bombast, fear, and doubt. And we will all lose in that case.

Our government also needs to expedite the development of the LNG infrastructure so that we can tap into a growing LNG market which is going to be otherwise filled in the next few years through long-term contracts among competing exporting countries like Qatar and Australia. This is a once-in-a-lifetime opportunity and government should ensure the regulatory processes do not undermine our ability to compete for this wealth.

35

British Columbia’s natural gas industry being driven by LNG potential Contributed by Gary Leach, executive director of SEPAC, Canada’s Oil and Gas Entrepreneurs™

T

he North American market for natural gas has been flooded with low-cost supply, primarily from shale basins in the U.S. British Columbia’s natural gas is at the far end of the pipe when trying to compete in this continental market but fortunately the province is well positioned to serve the Pacific Rim economies with LNG exports. The world’s largest market is Japan where demand for LNG is expected to grow as that nation reduces its reliance on nuclear energy. China’s LNG demand is expected to rise five times by the end of the decade to become the world’s second largest market for LNG. China is currently building 17 new LNG receiving terminals to boost its import capacity to 65 million tonnes per year.

This growing market has drawn significant Chinese, Malaysian, Korean, and Japanese investment to the Western Canadian natural gas industry. However, B.C.’s competitors to supply Asian markets are not standing still. The Australians currently have $200 billion in LNG projects on the drawing board (a scale of investment that rivals Alberta’s oil sands industry). The Aussies aim to triple their export capacity to 60 million tonnes per year and climb from the fourth largest LNG exporter in the world to first place.

An American LNG export facility in Louisiana has recently signed a 20-year supply contract with a state-run Indian company. Our neighbours in Alaska are realizing that the most-likely way to develop their large natural gas reserves is to export them as LNG from a Pacific coast shipping terminal rather than via pipeline through Alberta to the lower 48 states. Even China, while continuing to be a major destination for LNG exports,

36 B.C. Oil & Gas Report • 2012

Gary Leach

British Columbia has great potential as a natural gas producer.

will be investing billions of dollars to develop its own onshore shale gas resources.

The B.C. government has demonstrated that it understands the potential benefits to British Columbians by making LNG resource development a key economic policy goal. Infrastructure support, including electric power supply from BC Hydro, will be important contributing factors in making these projects a reality.

While the LNG industry focuses on the Pacific Rim markets and is dominated by large producers such as Encana, Apache, and Shell, it cannot be denied that overall the industry in B.C. is suffering from low natural gas prices.

For junior and intermediate producers operating in B.C. (about 50 are SEPAC members) these are challenging times

and the drilling and land sales statistics in the province reflect this. Lower levels of activity of course impact the drilling and service sector companies based in B.C. SEPAC has recommended to the B.C. government that it could improve the attractiveness of investment in the province by adjusting the deep gas drilling credit to give greater recognition to current well completion methods, particularly the large expense associated with multi-stage fracturing.

British Columbia has great potential as a natural gas producer. SEPAC will continue to advocate for policies that support a competitive investment climate on royalties, taxes, and regulation so that this tremendous potential can be realized for the benefit of all British Columbians. S

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Rigs rethink site leadership

By Cindy Soderstrom

T

he oil patch has its rough edges. Grease, dirt, and mud all play significant roles in the workday. Rig equipment is heavy and built for tough operations.

The oil patch also has a reputation for rough-edged personnel. A certain constitution is needed to be successful at rig work. As one 20-year veteran captured it, “the work is something mere mortals wouldn’t do.”

But there’s one rough edge the patch is working at smoothing out: management style.

Back in the day, senior crewmembers held firm to the belief that yelling, coupled with some measure of belittlement, effectively produced a tough hand. Senior people across industry have stories about ‘old school’ job training. The language and treatment was rough. The style blended with all the other rough-edges that were part of the job.

The patch is working at breaking from that history.

The rig manager is more commonly known in the field as the ‘toolpush’ or the ‘push’. The informal job title has been around for generations. For anyone who ever wondered where the term comes from, the ‘tool’ a rig manager ‘pushes’ is the drill bit.

The rig manager oversees a range of details at the rig site, but most importantly, his ability to coordinate the skill of individual crewmembers is what gets a drill bit churning away downhole.

It’s a significant amount of shorthand to go from ‘rig manager’ to ‘toolpush’. The term ‘toolpush’, beloved though it is by the field, glosses over the critical responsibility of the position: the management work of running a rig.

Drilling and service rig contractors, like companies from many industries, are now striving to get a better handle on how frontline supervisors develop management skills.

Companies move an experienced field employee into a supervisory position because the employee demonstrated solid

technical skill. However, successful frontline supervisors need to pair technical skill with management skill.

Frontline supervisors need to recognize and develop key players. They need to motivate their team and to communicate clearly with the employer about their team’s ability. Frontline supervisors draw on several skills that are unrelated to their technical skill.

More often than ever before, today’s rig managers understand this, and companies are stepping forward with needed discussion and resources. For example, when rig contractors bring together senior field staff each spring for an annual update on company practices and policies, these meetings have a broader agenda than in years past. A decade ago, it would have been unusual to see a discussion about leadership or coaching on ‘spring meeting’ agendas, but today, companies recognize the importance of these qualities in field supervisors.

Cindy Hames is director of Global Field Resources for Ensign Energy Services and has been attending the Ensign spring meetings to discuss the company’s talent management objectives.

“Some people are inherently trainers. They’ve always developed their crews and always done really well at it. These supervisors have leadership traits that are just as important as their technical capability. Spring meetings are a chance for us to step back and encourage further development of our current and future leaders, emphasizing the balance between technical and behavioural skills.”

Rigs inherently have rough edges, but rough-edged management doesn’t make a safe or efficient crew. It’s not the rig manager’s job to make a crew tough. A rig manager guides a crew in a tough job. The concept is a full turn-around from several generations of accepted industry practice.

As more rig managers hone their leadership skills, industry has a role in applauding their decision to break from the ste-

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reotype. Events like the Canadian Association of Oilwell Drilling Contractors (CAODC) safety awards are opportunities for the rig industry to commend their best frontline supervisors on a job well done. This year, drilling and service rig contractors nominated 2,380 drillers and rig managers for a CAODC safety award.

These industry leaders are setting a supervisory model that encourages a safer team environment for the future. S

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PSAC works to help improve industry image

I

n the wake of increasing prices at the pump, do people ask you how prices get set? What about all this talk regarding fracturing? Do you know enough about the drilling tech-

nique to respond to the increasingly difficult questions about just how safe it really is?

What about other aspects of Canada’s oil and gas industry, including its safety record and the diversity of career opportunities in the oilpatch? Do you know much about those aspects of the industry?

Industry employees are asked questions like this every day and often find they may not have the answers at their fingertips. This was feedback that the Petroleum Services Association

At the heart of the Community Partners program is a simple message – we heard you. PSAC conducted another survey of residents in communities across Western Canada, who identified increased communication, community livability, and envi-

of Canada (PSAC) received in a survey of its member com-

ronmental protection as being key areas for improvement. The

pany employees, and so PSAC launched PatchWorks in direct

program is currently supported by other industry associations

response to that feedback to help them better understand and

including CAPP, CAODC, CAGC, SEPAC, CEPA, and Energy

explain the many facets of the complex oil and gas industry.

Services BC, and has also received support from each of the provincial governments in the western provinces.

“When we launched our public outreach program, we knew how important it was to develop practical tools and initiatives that would signal to people that we heard them and take seriously our efforts to improve industry’s record and image,” explains Mark Salkeld, president and CEO of PSAC. “The increasing support and participation in the program by companies and individuals tells us we got this right, and we will continue down the path of creating meaningful opportunities to engage in a positive way with the public.”

While these are two initiatives among many that industry

PatchWorks is a series of short, monthly articles that provide information, facts and statistics to industry employees. In just a single page, each issue of PatchWorks answers a commonly asked question about the oilpatch, provides examples and points readers to more information.

PatchWorks is just one piece of a broader public outreach program that PSAC developed in recognition that there was work to be done to improve industry’s image and better demonstrate that industry takes seriously the need to operate in a responsible way. Also a part of that program is Community Partners, an industry-wide infield courtesy program designed to strengthen

has undertaken with the goal of improving relations with local communities and the public-at-large, there is work to be done.

PSAC will continue to promote these programs and, also, the record of the industry which continues to see improvements in its operational and environmental performance, in which PSAC members play a leadership role.

To find out more about Community Partners or join the growing list of companies supporting the program, please visit www.communitypartners.ca.

To read PatchWorks or to subscribe to the publication, visit www.oilandgasinfo.ca.

PSAC is the national trade association representing the ser-

relationships between the upstream oil and gas industry and

vice, supply, and manufacturing sectors within the upstream

community members, one person at a time.

petroleum industry. PSAC represents a diverse range of close to

Community Partners focuses worker attention on local con-

260 member companies, employing more than 60,000 people

cerns related to oil and gas activity in the field, reminding every-

and contracting almost exclusively to oil and gas exploration

one to do things like reduce dust, drive safely and close gates,

and production companies. PSAC member companies repre-

and ultimately treat community members and their property

sent over 80 per cent of the business volume generated in the

with respect.

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40 B.C. Oil & Gas Report • 2012

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Creating a network and serving the market The Society of Petroleum Engineers

By Melissa Schultea, SPE Senior Manager Canadian Activities

M

any people don’t realize that, despite its name, the Society of Petroleum Engineers (SPE) is not just for petroleum engineers. SPE welcomes a broad array of

SPE is always looking for ways to expand and improve its

individuals working in the upstream oil and gas industry and

not already covered, or know someone who does, contact me at

related fields. About one-third of SPE’s more than 75,000 pro-

mschultea@spe.org.

fessional members have a degree in petroleum engineering, but

In addition to the training courses, SPE holds conferences

just as many members hold some other type of engineering de-

and workshops each year in Canada. The inaugural SPE Heavy

gree. A significant portion of SPE members hold non-engineer-

Oil Conference-Canada will take place this June in Calgary. The

ing degrees, like geology, geophysics, chemistry, and business.

conference will provide international perspectives on best prac-

SPE’s members face a grand challenge — meeting the world’s

tices and technological advances in the exploration and pro-

energy needs in a sustainable and environmentally friendly way.

duction of heavy oil, as well as the opportunities and challenges

To help them do that, SPE provides trusted technical knowledge

faced in the process.

through such resources as periodicals and books; conferences,

In September, the SPE Hydrocarbon Economics and Evalua-

workshops, and technical exhibitions; training courses; and lo-

tion Symposium will be held, also in Calgary. The event is ex-

cal section meetings.

pected to attract some of the world’s leading financial analysts

With a year-end 2011 membership of 104,762, SPE is the

and management professionals to discuss the economics of oil

largest individual-member organization serving managers, en-

and gas exploration and production.

gineers, scientists, and other professionals worldwide in the up-

Finally, in November, SPE will host the Canadian Uncon-

stream segment of the oil and gas industry.

ventional Resources Conference. The program will offer E&P

The SPE Canada office in Calgary is home to one of SPE’s two

professionals the latest techniques and best practices for dis-

training centres. SPE knows the importance of continuing edu-

covering, developing, and producing unconventional resources

cation for keeping skills up to date, improving expertise, and

in North America.

learning new technologies, so a series of programs and courses

Upcoming workshops include Thermal Sand Control in May,

are held to cover a wide range of topics and new technologies.

Thermal Well Integrity in November, and Carbonate Reservoirs

Courses on the Evaluation of Canadian Oil and Gas Properties

in February 2013. For a listing of workshops and conferences as

and In-Situ Recovery Methods and SAGD are just a snapshot of

their details are finalized, visit the SPE event calendar at www.

the many training courses that are scheduled for 2012. A com-

spe.org/events/calendar.

plete list of training courses is available at www.spe.org/train-

Among its suite of periodicals, SPE publishes the Journal

ing/courses.

of Canadian Petroleum Technology. This bi-monthly peer-re-

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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.

SPE has six local sections in Canada, in Calgary, Edmonton, Halifax, Lloydminster, Saskatchewan, and St. John’s. Sections provide an important way for members to learn about technical matters through distinguished lecturer visits and locally orga-

Phone: 250-782-7785

42 B.C. Oil & Gas Report • 2012

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Optimism and caution for HRBPG Spring 2012 activity update

By Kathy Smith

One of several medium-sized natural gas processing plants in the Horn River Basin. Photo by Kathy Smith.

W

ith the persistent downturn in the price of natural gas, northeast B.C.’s Horn River Basin is seeing slightly less activity tempered with optimism in anticipation of an eventual gas price correction.

The Horn River Basin Producers Group (HRBPG) consists of nine members: Apache, Conoco Phillips, Devon, Encana, EOG Resources, Esso Imperial/ExxonMobil, Nexen, Quicksilver Resources, and Stone Mountain Resources. Their holdings represent approximately 97 per cent of the land in the area.

“There are all sorts of different levels of activity amongst producers in the Basin, and always have been,” says HRBPG chair Rob Spitzer. “For this year, the more active players will likely be Nexen, KOGAS drilling with Encana, and maybe a few others – it’s a real range and it averages out to slightly less activity when compared to 2011.”

Spitzer, who’s also the vice-president of Exploration for Apache Canada Ltd., expects there will be a little less drilling, seismic and lease construction this year.

“2012 will likely result in slightly fewer wells than 2011, which is true of horizontal and vertical wells. The producers group planned to drill 84 wells in 2011 and came in at 53 as of December 1st, so it could be 56 in total. This year, the plan is for 79, and we’ll have to see what the actual is going to be.

44 B.C. Oil & Gas Report • 2012

“Generally, the forecast for the upcoming year tends to be a little higher than the actual because after companies plan their budgets, conditions change, particularly in a lower-price environment, and they usually do a little less than they planned,” Spitzer adds.

Development in the basin is in its early stages and some larger projects, such as the Cabin Gas Plant, are in the process of completion.

“Even though natural gas prices are extremely low, work on the plant continues. Employment and activity will continue for the next year or two in spite of low gas prices,” says Spitzer. “Once all the pre-planned activity is complete, if prices are still low, you’ll see a greater reduction in activity. It’s contingent on where the gas price is going – if it stays the same, activity will drop through time.”

He adds, “Like every other field in North America, everybody’s looking at the two dollar gas price, and everyone’s got to make their own decision as to what that means in terms of continued activity. It can change – it’s very volatile and always has been. If you look at gas prices through time you’ll see peaks and valleys.”

Spitzer mentions that each company will determine its own threshold and will continue to produce or shut it in.

“We’ve seen companies do both, and Horn is no different – it’s happened before and I would not be surprised if a company or two does that if gas prices continue to slide. That’s not to say there won’t be production with gas going through the pipes, because at the end of the day these wells have long lives. The wells that are coming on have reasonably steep declines but then they flatten out, so you’ll still get gas going through the plants.”

There are advantages and disadvantages to working in the Horn, explains Spitzer.

“One good thing is the wells are pretty prolific, and one bad thing is there’s a premium to be paid for geography. From a pipelining standpoint we’re far from market and that means additional costs.”

Since the HRBPG began activity in the Basin, Spitzer has talked about how low gas prices can affect operations.

“I have really made this clear to people in Fort Nelson over the past few years, as recent as September at the B.C. Oil and Gas Conference. I don’t want to scare anybody but there are some warning clouds on the horizon – I think we’re obligated to let them know what our thoughts are.”

After natural gas took a hit in 2008, he says it slowly began creeping back up as people learned more about its merits. He feels the primary factor contrib-

uting to low gas prices is the large volume of gas available in North America, particularity in terms of the horizontal multi-well fracturing process, which is the main driver because there’s so much gas liberated through that technology.

Because of that, companies are drilling for liquid-rich gas.

On the upside, Spitzer believes there is truth to the idea that when the price of gas drops, it naturally corrects itself because as activity is curtailed, the demand for gas rises.

Some HRBPG members such as Nexen, Quicksilver, Esso Imperial/ExxonMobil, and Encana-KOGAS, are experiencing various levels of activity, and reported on their progress.

Key to producers is the creation of alternate markets. In November 2011, Nexen announced it reached an agreement to create a strategic partnership with a consortium led by the INPEX Corporation of Japan regarding the development of shale gas lands in the Horn River, Cordova, and Liard basins. The parties are also investigating the feasibility of a potential downstream project including LNG exports. Some basins are facing steeper decline rates than expected, but it’s believed the Horn is not prone to such decline due to its geological formation. Nexen has completed drilling an 18-well pad and another 10-well pad is planned for this summer.

Quicksilver is in the pre-application First Nation/Public Consultation phase for the proposed Fortune Creek Gas Plant, and they are working closely with the BC Environment Assessment Office and stakeholders. It’s expected applications will be submitted this summer with potential construction by winter 2013. They completed drilling 10 new wells and are starting on another 10-well pad. Eight wells are in the fracturing stage. They are preparing for increased production.

Imperial Oil and ExxonMobil Canada share a 50/50 interest and hold 340,000 net acres in the basin. In early 2012 they drilled 31 wells to evaluate shale gas

Chair of the Horn River Basin Producer’s Group, Rob Spitzer spoke at a public meeting and to conference attendees during the 2011 BC Oil and Gas Conference held in Fort Nelson. Photo by Kathy Smith. resource distribution and quality, and collected 333 square-kilometres of 3-D seismic data. Imperial is advancing work on a production pilot project including drilling the first multi-well horizontal production pad. With drilling complete, proposed production is planned for late 2012 to assess productivity and improve development costs for long-term plans.

Encana holds approximately 1.6 million net acres of land in the Greater Sierra and has developed about 30 per cent of their production area. In July, Encana expanded its Horn River farm-out

agreement with the Canadian subsidiary of Korea Gas Corporation (KOGAS) at Kiwigana. KOGAS agreed to an incremental investment to earn into a 20,000 additional acres of the Horn River lands.

Drilling in the Kiwigana area is complete, and natural gas production is expected in spring 2012.

Ten horizontal wells were drilled in Kiwigana and construction began on a second compressor station. The compressor station will increase current capacity to over 110 million cubic-feet per day (MMcf/d).

Completions were accomplished at Two Island Lake on three pad sites in 2011. Encana recently closed the sale of their interest in the Cabin Gas Plant to Enbridge Inc. Expecting reduced levels, they are curtailing production short to medium term. Long term, Encana is optimistic about new export markets developing through west coast LNG projects and increased use of natural gas domestically. S

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45

Kitimat LNG Spring activity update

By Kathy Smith

Artist rendering of the proposed Kitimat LNG facility. Image courtesy of Apache Canada Ltd.

K

itimat LNG partners Apache Canada Ltd., EOG Resources Canada, and Encana Corporation are making steady progress after receiving their 20-year export licence from the National Energy Board last fall. The LNG facility will be located at Bish Cove on Haisla First Nation land approximately 650 kilometres north of Vancouver.

The Pacific Trail Pipeline (PTP) will transport gas from Summit Lake to Kitimat through a 463 kilometre underground line. PTP will connect with existing transmission lines which provide extensive access to natural gas throughout B.C. 46 B.C. Oil & Gas Report • 2012

The Kitimat LNG project continues to meet many milestones and is currently in the Front-End Engineering and Design (FEED) stage.

“The proposed Kitimat LNG facility and PTP go hand in hand,” says Paul Wyke, spokesperson for Apache Canada. “Right now, we’re finishing up the FEED studies on the facility and pipeline and those will give us more certainty around the costs, construction timelines, and labour requirements we need before both of these projects go before the boards of the partners for a Final Investment Decision (FID).”

The partners are also in the throes of negotiating long-term gas sales con-

tracts with potential Asia-Pacific customers, Wyke adds.

“Inking those contracts are certainly another piece of the puzzle that needs to be in place prior to FID,” he says.

“Both projects are receiving great support from the communities they’re in and our relationships and partnerships with First Nations are excellent and continue to grow. That strong involvement and support certainly benefits both projects.”

As far as construction timelines go, Wyke says many changes can occur throughout complex engineering processes, so it’s difficult to forecast hard

dates as to when the Kitimat LNG facility and PTP will commence operations.

As to where the natural gas for the Kitimat LNG facility will come from, Wyke explained that the export licence allows for supply to come from anywhere in the Western Canadian Sedimentary Basin.

“We have a lot of options as to where that natural gas can be sourced from and there’s definitely a vast supply waiting to be tapped.”

In terms of managing gas transmission from the Horn River Basin to Kitimat, Horn River Basin Producers Group (HRBPG) chair Rob Spitzer said, “The [Horn River] wells are relatively prolific and I think you would find that the magnitude is going to be manageable given the potential lead time for the Kitimat LNG project to get off the ground.”

Aerial photo of the Kitimat LNG facility.

Image courtesy of Apache Canada Ltd.

“Eyes are on the Horn gas, but there’s

“The Kitimat LNG project represents

long-term supply of liquefied natural gas

no direct linkage and there’s work to be

a phenomenal opportunity to create a

from Canada to international markets.

done to see how Horn River fits in with

new market for Canadian natural gas.

Other companies in the HRBPG are

other potential gas supply for Kitimat.”

B.C. and Canada have an abundance of

also looking at separate LNG opportuni-

Many factors influence where each

natural gas and require new markets to

ties. In addition, BC LNG, a partnership

market chooses to get their gas from, ex-

optimize returns from this resource to

between family-owned LNG partners

plains Spitzer, adding that a lot of it has

support jobs, economic growth and pub-

from Houston, Texas and the Haisla

to do with diversification of supply.

lic services in B.C. and across the coun-

First Nation, received a 20-year export li-

“All buyers value diversity of supply

try,” adds Wyke.

cence earlier this year. They are planning

because at the end of the day they don’t

Once completed, the Kitimat LNG fa-

a floating terminal (barge) off Kitimat

want to put all their eggs into one bas-

cility will be able to ship a secure, stable,

from Pacific Rim export. S

ket.”

Access to market is another factor.

“The location of Kitimat has very competitive sailing times to the Asia-Pacific region when compared to other LNG proposals around the world,” says Wyke.

“Also, potential customers are looking to regions that have a stable resource base, governments that support energy, and assurance that the resources are being developed responsibly.”

The B.C. government strongly supports the development of LNG export projects in the province through its Natural Gas strategy and LNG strategy.

“We’re certainly encouraged by the province for recognizing the potential here and embracing LNG as a big part of the energy mix,” says Wyke.

B.C. Oil & Gas Report • 2012

47

Three reasons the B.C.-Based Business Platform is essential for the B.C. oil and gas industry

I

n spring 2012, Energy Services BC (ESBC) announced a new service that will help ensure a strong oil and gas service sector in British Columbia and make certain the oil and gas industry continues to benefit B.C. communities. The BC Based Business Certificate and Procurement System is an online platform that allows certified local B.C. contractors and service firms to receive bid opportunities and contract information from participating oil and gas producers.

The platform was developed in response to three needs in the province’s oil and gas industry: • Identification of local B.C. contractors - A large number of oil and gas producers operating in B.C. have been committed to local hire programs over the years. One of the challenges they faced was how to identify which businesses were actually based in the area and what was in fact the definition of a “local” contractor. ESBC’s platform provides an easy way for producers to identify certified local contractors.

• Bid opportunities for contractors - In addition to identifying local contractors, the program provides oil and gas producers operating in the province a direct line of communication to local contractors. This ensures that B.C. contractors are aware of opportunities and have the information they need to participate in the industry.

• Local hiring information - The platform also provides producers, communities, and contractors with statistical information on local hiring. This data provides producers with evidence to prove their commitment to local hire programs, provides local contractors with feedback on selection criteria, and gives communities confidence the oil and gas industry is contributing to the local economy.

Support for the procurement system has come from all communities in Northeast B.C. including Pat Pimm, parliamentary secretary for the Natural Gas Initiative and MLA for Peace River North; Blair Lekstrom, the minister of transportation and MLA for Peace River South; Mike Bernier, mayor of Dawson Creek; Bill Streeper, mayor of the Northern Rockies Regional Municipality; and Lori Ackerman, mayor of Fort St. John.

“In order for the Northern Rockies to continue to flourish as a vibrant community and as a service centre for development in the Horn River, Liard, and Cordova natural gas basins

Sandra Minifie, CEO of Action Health and Safety Services, in Action’s reception area in front of the company’s B.C.-based business certificate. (Action was one of the first ESBC members that was certified as a B.C.-based business). it is essential that there is a strong local service sector,” says Bill Streeper, mayor of Fort Nelson Northern Rockies Regional Municipality. “The BC Based Business Platform makes it easy for oil and gas producers in the area to identify certified local contractors and communicate contract opportunities in the oil and gas industry. The program is a ‘Win-Win-Win’ for our community, contractors, and producers in the area.”

Pit Pimm is also a supporter of the program.

“The promotion and use of local service sector companies has long been a priority for me in my role as MLA for Peace River North. The Horn River, Liard, Cordova, and Montney shale gas plays all fall within my riding. This program will allow producers to provide more British Columbia service companies opportunities to quote on local projects.”

Energy Services BC is a not-for-profit association that advocates on behalf of companies who provide service and supplies in the energy industry in British Columbia. ESBC welcomes businesses to set up and establish operations in British Columbia that contribute to communities and province in a meaningful way. If you are an out-of-province company that is interested in participating in the BC Based Business program, contact ESBC today to find out how.

ESBC encourages all contractors and services firms that are interested in participating in the B.C. energy industry to register today at www.energyservicesbc.org S

Energy Services BC is a not-for-profit association that advocates on behalf of companies who provide service and supplies in the energy industry in British Columbia.

48 B.C. Oil & Gas Report • 2012

Pipeline & Facility Construction

Fort Nelson Office

FABCOR Pipelines (BC) Inc. Head Office:

Dawson Creek Office Grande Prairie Office Millet Office

9220 Golf Course Road Dawson Creek, BC V1G 4H4 250.782.9405 Fax: 250.782.9406

#1, 4309 Nahanni Drive Fort Nelson, BC V0G 1R0 250.774.7111 Fax: 250.774.7102

FABCOR 2001 Inc. Head Office:

www.fabcor.ca

District Office:

10202 — 74 Avenue Clairmont, AB T0H 0W0 780.532.3350 Fax: 250.532.8977

District Office: Equipment Yard Millet, AB T0C 1Z0 780.933.3350

New guidance document helps oil and gas workers to prevent chemical hazard injuries Fort St. John, B.C.

I

n the month of March, Enform – the safety association for Canada’s upstream oil and gas industry, in association with key major players in the industry have developed and launched Controlling Chemical Hazards in the Oil and Gas Industry – A Program Development Guideline. This comprehensive guide helps employers and workers prevent chemical hazards at the worksites.

It is now available for industry-wide use on the Enform website.

The guide can be used as an educational tool to define the process for controlling chemical risks at oil and gas lease sites. It will explain the various responsibilities regarding Material Safety Data Sheets (MSDS) and their importance to the employers and employees. It will also provide a background on chemical hazards specific to the oil and gas in-

50 B.C. Oil & Gas Report • 2012

dustry, and have value-laden, easy-to-use templates to assist the employers and employees working on these sites when evaluating their chemical concerns (e.g. exposure control plans, chemical guidance sheets, etc). The comprehensive guide is now available for industry-wide use.

The guide is broken up into three sections: a planners guide, supervisors guide, and workers guide. It provides detailed information on the roles and responsibilities of workers and employers who could be affected by chemical hazards at their worksites. In addition to the guide, one of the other tools is a worker flip-guide designed by workers for workers which is simple to understand and easy to use.

An accompanying interactive web program will assist companies with finding

the right guidance sheets for the particular chemicals and mixture of chemicals that they are working with. The web program will also help provide direction as to what modifications may be required for their safety program, depending on which different chemicals and mixtures are used. This will be a huge advantage for companies that may not have a hygienist on staff who can direct their individualized safety program.

“It is promising to see the Western Canadian safety and regulatory bodies including WorkSafeBC, as well as industry experts come together and assist Enform in developing a document that supports the oil and gas industry in controlling chemical hazards in the workplace,” says Rick Newlove, manager at Enform’s Fort St. John campus. “This co-operation makes for a very comprehensive guid-

ance document for all levels of industry.

I am enthusiastic to see industry take advantage of this material for their worksites.”

Enform plays a fundamental role in providing oil and gas industry workers and employer’s guidelines to protect

their employees, make available safety alerts and bulletins, and communicate industry-recommended best practices.

Enform is the advocate and leading resource for the continuous improvement of industry safety performance. Established by industry for industry, Enform

helps companies achieve their safety goals by promoting shared safety practices and providing effective training, expert audit services, and professional advice. Our vision is a no work-related incident or injuries in the Canadian upstream oil and gas industry. S

B.C. Oil & Gas Report • 2012

51

Opportunities are abundant in the natural resource-rich North Peace region

Written by Kaleena Ross, North Peace Economic Development Commission

E

xplorers, fur traders, and then homesteaders joined the First Nations and settled the vast northeast region of British Columbia with dreams of freedom and a better life.

These same dreams continue to attract people to the North Peace today. But now, instead of hardship, newcomers find contemporary community facilities, and remarkable job and business opportunities.

Bisected by the Peace River, the B.C. Peace region comprises nearly onequarter of the province’s land area. The people of this region find many benefits to living in a vibrant and diversified economy. The largest demographic of the region’s population is comprised by young, growing families. This is largely due to the numerous child development, healthcare, education, and activity programs that are provided to the residents of the region. The North Peace 52 B.C. Oil & Gas Report • 2012

region is not only a great place to raise a family and live an active lifestyle; it is also a place that is rich with opportunities to start a business.

The North Peace region’s competitive advantages are its low tax rates, low cost of energy, connectivity to the shortest link between Shanghai and Chicago through the Port of Prince Rupert, low overall business costs (including a regional airport), and low cost of land.

From prairie farmland and boreal forest to alpine tundra and rugged Rocky Mountains, the Peace Region produces 90 per cent of the province’s grains, 38 per cent of its hydro-electric power, has some of the largest gas fields in North America with more than 20,000 wells drilled, employs about 2,300 forestry workers, and plays host to more than 300,000 tourists each year.

The North Peace region plays a significant role in the province’s economy,

contributing an estimated $9.2 billion, or 12 per cent of B.C.’s net exports. While a significant share, it is made even more remarkable when considered in the context of the region’s workforce: with only two per cent of the province’s labour force, each worker in the region generated nearly seven times more in export revenue versus the province as a whole.

This staggering contribution to the province’s exports is made possible by its vibrant and diversified economy which includes strong industries in energy and fuels, mining, agriculture, forestry, tourism, and retail and construction.

The energy sector is currently driving the economy in the North Peace and greatly contributing to the provincial economy, accounting for 90 per cent of B.C.’s energy and fuels exports in 2010.

Oil & Gas Inquirer magazine indicated that “The Montney and Horn River unconventional gas plays are massive pros-

Fort St. John, “The Energetic City”.

Photos provided by the District of Hudson’s Hope, District of Taylor, and the City of Fort St. John.

pects that are reshaping Canada’s petroleum sector.” The region saw significant growth in the energy sector in 2011, with several large production companies beginning exploration and production operations in the Montney Basin.

Worldwide demand for coal has increased dramatically and created many more opportunities in the North Peace which has hundreds of years of coal reserves remaining. There are currently proposals for three separate coal mines that border the edges of the District of Hudson’s Hope with expected reserves of over 50 years each. Currently, the region’s mining activities contribute 14 per cent of B.C.’s total mining exports with the expectation that this will grow significantly with the approval of the proposed mining projects.

On April 19, 2010, the B.C. government announced that it would be moving forward with the third stage of the Site C Clean Energy project (Site C). Site C will contribute to the local and provincial economy by creating an estimated 7,500 direct construction jobs throughout the construction period and up to 35,000 indirect jobs through all stages of the project.

The agriculture sector includes prairie crops of wheat, barley, canola, and forage seed production. The region contributes 90 per cent of B.C.’s wheat, 95 per cent of B.C.’s canola, 30 per cent of

B.C.’s honey production, and exceptional quality grass seeds which help make livestock production in the North Peace particularly competitive. Livestock production includes traditional beef and dairy cattle, sheep, hogs, goats, and horses, and a growing diversification into game farming of bison, reindeer, and exotic livestock like llama, alpaca, fox, ostrich, emu, and wild boar. The region is home to some of the largest herds of bison in the province, producing nearly three-quarters of B.C.’s bison.

The forestry sector includes a wide array of tree species that vary from spruce to balsam poplar and paper birch. The majority of the timber harvested from the 4.673 million hectares of the Fort St. John TSA is processed by the pulp mill, sawmill, and one of the world’s largest OSB plants that are located in the North Peace.

The explosive growth in the region has led to a dire need for residential and commercial developments in the region as a whole. The communities require the construction of an additional 1,000 family dwellings this year alone. A significant growth in population is anticipated to occur over the next decade resulting in a demand for housing that cannot be met by current infrastructure.

The North Peace is abundant with opportunities and welcomes you with an entrepreneurial spirit! S B.C. Oil & Gas Report • 2012

53

Continued growth in B.C.’s Northern Rockies – where opportunity is at its peak

T

he services and personnel required to explore, develop, and produce shale gas resources continue to pay dividends in the community of Fort Nelson and the Northern Rockies region. The signs of growth and expansion are everywhere, with even greater potential around every turn.

Following the trend from 2010, 2011 in the Northern Rockies Regional Municipality showed record statistics on the number and value of building permits, in both commercial and residential. In the face of great opportunity come some sizable challenges: access to provincial infrastructure funding, housing, air transportation, and core health and social services.

Above all, Fort Nelson and the Northern Rockies strive to remain ahead of the curve in terms of growth and development.

A renewed Official Community Plan and Alaska Highway Corridor Transportation Study (2011) are two such measures taken.

The recent release, development, and subsequent marketing of 250 acres of light industrial lands within Fort Nelson is another.

A lack of available commercial and industrial land limited the establishment of business to meet the staggering demands of the oil and gas industry, despite mayor and council’s insistence on local employment. By virtue of the positive working relationship with the Agricultural Land Commission, land was released in 2010 to be used for a means more purposeful to the needs of today. In high demand, the Northern Rockies will apply in 2011 for the purchase of additional land for further light industrial development in adjoining areas.

Similarly, the demand for housing is unprecedented, as documented in the 2010 Residential Housing Strategy. Current and immediate needs were identified within the strategy for a population of 7,500 people, but with additional future planning looking out for years to come to satisfy populations of 10,000 and 15,000. As the building season ramps up again, it will be interesting to see what the building season of 2011 comes to bear. The municipality is actively looking at innovative incentive solutions through the implementation of the housing strategy throughout the upcoming year.

Since the implementation of its strategic plan and subsequent business plan, the Northern Rockies Regional Airport has 54 B.C. Oil & Gas Report • 2012

Above all, Fort Nelson and the Northern Rockies strive to remain ahead of the curve in terms of growth and development. come to respond to over 1,350 flight movements per month, up to 10 regular 737 charters per week, and passenger traffic, including those travelling on charters, expected to reach 100,000 in 2012. Much is on the horizon for the Northern Rockies Regional Airport for this year, including terminal work, an airport lands development plan, several large-scale airport capital improvements on runways, taxiways, and other grounds improvements. The business plan in its first stages of implementation is successfully bringing the airport to a state of financial self-sufficiency. Stay tuned for a new Northern Rockies Regional Airport website to check flight arrival times, weather information, and updates on the development of this community resource.

The Northern Rockies Regional Municipality is working hard to ensure that the community is as prepared as possible for the growth anticipated as a result of the shale gas resource extraction within the municipality. It is vital that the people who live and work in the region benefit from the resources being extracted, through jobs, sales, and trickle benefits. It will not be possible to establish a viable service centre for our neighbouring shale gas basins without funding and support from higher levels of government to address the infrastructure shortfalls.

Despite the obvious opportunities presented by the Liard, Cordova, and the Horn River Basins, regional infrastructure deficit numbers estimated in 2007 sit around $134 million. Likewise, the infrastructure deficit and capital needs assessment of 2007 does not address social impacts and associated resources for a community experiencing growth and poised for future population expansion.

The Northern Rockies Regional Airport.

Stay tuned for a new Northern Rockies Regional Airport website to check flight arrival times, weather information, and updates on the development of this community resource.

Recruitment and retention of both skilled and unskilled personnel in Fort Nelson and the Northern Rockies have long been a challenge due to the distance from other centres. The devolution of some core health services such as maternity care and the challenges in recruiting emergency personnel leave newcomers often hesitant to relocate their families. However, municipal incentive programs for doctors, partnerships between industry and Northern Lights College, and innovative, collaborative solutions between stakeholders provide reassurance that not only do services and amenities remain, but improve over time.

Likewise, other incentives to choose Fort Nelson have become a reality: a new $50 million recreation complex complete with twin ice rinks, a community hall, and a curling rink were recently completed in 2011, and have seen incredible uptake by the community. Upgraded hiking trails in the Demonstration Forest, newly designated motorized trails for ATVs and snowmobiles, and a recently completed, paved 4.7 kilometre community walking trail add to the unrivalled recreational opportunities of the Muskwa-Kechika Wilderness area, Alaska Highway, and the Northern Rocky Mountains.

And move over Horn River Basin, there is a new kid in town.

To the west, with the Liard Basin estimated at 1.25 million hectares, with 14 licenses sold, and land sales totalling nearly $110

The mayor and regional council are optimistic about the potential of the region and the improvements on the horizon to meet the demands for growth.

“We’re going to see a higher-quality community because there is going to be year-round employment, rather than feast or famine,” says Mayor Bill Streeper.

The community has also actively invited industry, provincial representatives, and other stakeholders together annually to talk about resource development and share information about both the challenges and improvements through the Horn River Basin Activity Update. The 2011 B.C. Oil & Gas Conference was a resounding success – and we hope to continue the momentum on September 13th, 2012 with an activity update that ex-

million of the overall $761 million value of the region, the fu-

plores the hot topic of housing. Occurring in concert with the

ture looks bright for continued shale gas development nearby.

Energy Expo, September 14-15, 2012, there will be endless op-

With technology quickly advancing in the Horn River Basin,

portunities to shake hands with the service sector, producers,

stakeholders in both the Horn River and the Liard Basins are

and service organizations that make up the Northern Rockies

sharpening their pencils to ensure that when the time comes

and the Horn River, Liard, and Cordova Basins.

to extract natural gas in this neighbouring formation, they will

Local residents of the NRRM are planning for success –

be very well prepared to do so. With British Columbia’s natu-

come join them! To learn more about the Northern Rockies,

ral gas production being the second highest in the country, the

the Horn River, Liard, or Cordova Basins, and Fort Nelson, go

success of synergies between industry and Asian investors has

to www.NorthernRockies.ca or contact the NRRM to receive an

ensured that capital investments and development continue to

economic profile of the region: ecdev@northernrockies.ca or

take place despite low market prices for natural gas.

(250) 774-2541. S B.C. Oil & Gas Report • 2012

55

CAPPA: proudly serving production accountants for over 50 years What is a production accountant?

Production accountants perform the accounting tasks relating to volumes of oil, gas, and water that are separated from the well effluent. Every month, production accountants determine each party’s share of production from the wells, each party’s volumes held in inventory at the facility, and each party’s share of products that are sold from the facility.

What’s new at CAPPA 2011 marked the 50th year that CAPPA has been an association. We are very proud to have reached that important milestone. Since we are volunteer-based, it is a tremendous accomplishment. We couldn’t have done it without the great work of our volunteers.

While we do promote social and networking opportunities for our members, we also have committees that look at new regulations and procedures that may impact our business and we ensure that our members are well informed. We do this through an online magazine called RECAP. This is the primary way we keep our members up-to-date on all of CAPPA’s business.

We also offer a comprehensive certificate program that is widely viewed in the industry as a minimum requirement to

• To represent this section of the industry in a technical and procedural capacity when dealing with other organizations or government agencies.

• To develop an education program designed to assist the individual member, the company, and the industry as a whole in efficient production accounting practices and procedures.

• To promote a cordial relationship among all members of the association.

CAPPA member privileges • Online RECAP magazine • Up-to-date industry information • Preferred pricing for educational luncheons and seminars • Conferences • Social events

work as a production accountant. Our seminar programs are also very well-attended as these cater to a specific topic that will help production accountants in their day-to-day work.

CAPPA objectives are: • To strengthen the profession of production accounting.

• To provide a forum for the people interested in the compiling and reporting of production statistics in the oil and gas industry.

Bus. (403) 216-7052 Fax. (403) 216-7053 www.blackgolderp.com

56 B.C. Oil & Gas Report • 2012

4715B - 1st Street SW Calgary, Alberta T2G 0A1

Our members have access to extra website content including: • The CAPPA job board • Salary survey results • Membership surveys • Materials from CAPPA presentations CAPPA program overview What can a CAPPA certificate do for you? A CAPPA certificate opens doors in the oil and gas industry and leads to a career in production accounting.

What is involved in taking the CAPPA program? The program consists of five levels (45 hours per level) plus 100 hours of registry (government reporting) modules.

What are the prerequisites? A high school diploma, but accounting courses or an accounting diploma would be an asset.

If you would like more information on our education programs or you would like to volunteer for CAPPA, please visit us on our website at www.cappa.org. We look forward to hearing from you! S

FIRST ALERT LOCATING LTD.

F

PROFESSIONAL, PRECISE, & COMPLETE LOCATING SERVICES

irst Alert Locating Ltd. provides professional, precise, and complete locating services so our clients can proceed with their own projects – in confidence and safety.

Gas leaks not only cause environmental issues, but result in lost revenue. An average leak (1/8-inch diameter), under average pressure of 50 psi will release about 11,500 cubic-feet per day (four million per year).

Marty and Jamie Andersen began First Alert with the This technology is incredibly economical, highly effective, notion to deliver highly accurate locates for remote and incredibly sensitive. These truck-mounted units can and urban projects, including scanning and locatcover a lot of distance. The aving inside facilities, rec“Peace of mind: Be certain erage distance from the source lamation sites, seismic to the point of first detection projects, or new pipeline that the underground is approximately 2.5 miles. rights of way. An imporfacilities are thoroughly Larger leaks under favourable tant distinction our serconditions have been found vices have is the ability identified for your project.” from over 10 miles away. The to locate for all possible SuprSnifrTM is fast, affordable and driven by results, apunderground hazards, not just what is identified on proaching 100 per cent accuracy on even the smallest leaks. a published map. We also offer services for First Call False readings are not an issue with this system.

Management, conduct general facility crossing inspections and ground disturbance auditing.

We have the necessary expertise to deliver crews and equipment wherever we are required and would greatly To complement our client’s satisfaction, we’ve recentappreciate an opportunity to work with you.

NEW! ly added leak detection (our newest service) in joint venture with GasTrak Ltd. This proprietary method utilizes a flame ionization technology which is provFurther information is available on our website at en in pipeline leak detection in both above and bewww.firstalertlocating.com or you can call us at low grade.

780-518-8179 or toll-free at (866) 538-9936.

Advanced science and advanced protection with Petro-Canada Lubricants Petro-Canada Lubricants is proud to support Canada’s oil industry

I

n Canada, the oil industry has a life of its own. It breathes global change, pumps success and feels the impact of environmental challenges. At the heart of this business beats the machinery that keeps it running every day. Petro-Canada Lubricants is dedicated to providing high performance solutions to protect these vital assets across the industry.

At Petro-Canada, we’re proud to work with leading oil sands operations. Every day your equipment is met with tough working conditions, including severe temperatures, unpredictable weather conditions, and unfavourable terrain.

Oil sands mining is a key part of the global economy, and as such, there is greater focus on leveraging savings, and preventing costly downtime – fundamental aspects of gaining that competitive edge. It takes the finest fluids and greases to meet the extreme demands placed on these machines.

ence working with major OEMs, we make sure your machinery is kept running the way it was designed to. We carry this service leadership and support right through to daily operations, upgrades and change outs, every step of the way.

Commitment, experience, and expertise Petro-Canada has been an integral part of the Canadian oil sands mining industry for over 30 years and we understand the circumstances faced by today’s operations. To our customers we’re more than just suppliers – we’re partners in helping them meet their business goals.

We know the challenges in finding the right lubricants for the job, which is why we work with our customers to identify the right products across their equipment. And with proven experi-

Products that perform It’s this expertise that we put behind our full suite of products, designed to keep operations reliable and efficient.

We understand the importance in extending the life of your equipment and minimizing maintenance costs. Whether it’s on-road or off-road equipment, our lubricants are formulated to improve equipment performance, reduce downtime, cut operating costs, and extend equipment life.

So what is our performance secret?

We use only the purest base oils to create the best products for your operation.

58 B.C. Oil & Gas Report • 2012

What sets our products apart?

Petro-Canada’s fluids and greases are free from impurities that hinder performance. It all starts with 99.9 per cent pure, crystal-clear base oils — among the purest in the world. Our base oils are produced from the patented HT Purity process. This severe HydroTreating process removes the impurities found in many conventional products.

These ultra-pure, API Groups II and III base oils are then blended with the highest performance additives which deliver a clear advantage in our finished products.

Batch processing may be a traditional form of grease manufacturing, but Petro-Canada is anything but old fashioned. Batch processing allows our crafters to take full advantage of the properties of the ultra-pure base oils.

This advanced process produces results far beyond today’s standards:

• Exceptional low temperature performance • Long life for maximum equipment durability • Reduced equipment downtime • Cost savings through lower maintenance costs • Increased productivity Proven performance in the field At our facility in Mississauga, Ontario, we produce over 350 innovative lubricants, specialty fluids, and greases that deliver greater purity, durability, multi-functionality and performance.

We pride ourselves in being the total solution provider, no matter the operational challenges.

One of our standout products in the Canadian oil industry is the VULTREX family of greases for open and enclosed gear lubrication. These products contain synthetic fluids to provide excellent performance for handling some of the harshest operating conditions – from intense summer heat to severe winter cold, and wet or dusty environments.

Customers choose VULTREX OGL time and time again because of its ability to extend shovel component life which can provide customers with reduced operating costs and savings.

Petro-Canada’s VULTREX OGL technology is proven to extend BI 395B shovel component life by an average of 25,000

hours. This translates to time and mon-

• ENDURATEX – Gear oils

ey saved in replacements and repairs.

• DURON – Heavy duty engine oils

VULTREX is among many of our su-

• HYDREX – Hydraulic fluids

perior products formulated for use in

These are just a few of our advanced

today’s oil mining and drilling opera-

products, but we won’t stop there. Our

tions, including:

commitment to innovation will contin-

• PRECISION – Greases for a wide

ue to make Petro-Canada an industry

range of equipment

leader, now and into the future. S

DIVERSIFIED For all your EmployEE TransporTaTion nEEds in BC!

Transportation Ltd. BC OPERATIONS

“ With offices, yards & shops throughout BC, we can provide vehicles anywhere from 14 passenger Sprinter units to 55 passenger coaches. Just let us know what your requirements are and we will be able to meet them.”

Give us a call at our Head Office @ 250.788.3909 OR 1.800.666.7304 and talk to Bill or Lisa

B.C. Oil & Gas Report • 2012

59

Gemini establishes itself in Dawson Creek

G

emini Corporation is a professional services firm that designs, builds, and maintains energy and industrial facilities. We have built a reputation for delivering innovative, cost-effective solutions to complex projects. With a steadfast commitment to understanding our clients’ businesses and by providing superior client service, Gemini holds itself accountable for the delivery of multi-discipline engineered and field solutions to energy and industrial clients.

Founded in 1982, Gemini provides services on either a standalone basis or by combining engineering and field services capabilities to increase project efficiency and provide a single point of accountability. Our principal target markets are conventional and unconventional oil and gas, in-situ heavy oil, and heavy industrial facilities. Profes60 B.C. Oil & Gas Report • 2012

sional services are delivered through two business segments focused on project solutions that are both technically innovative and financially sound. The Field Solutions segment provides flexible, cost-efficient fabrication, field construction, and facility maintenance services.

The Engineered Solutions segment specializes in providing clients customized, cost-effective design, engineering, and construction management services from concept through to completion.

Our capability to deliver facility services under a design-build-maintain model, which increases capital efficiency and provides a single point of accountability, is a key differentiator for Gemini.

This approach provides cost and schedule efficiencies by deploying Gemini’s engineering, fabrication, and maintenance on a combined service basis as an integrated management team.

Gemini incorporates environmental and regulatory strategies into the full project lifecycle of small- and large-scale projects. Our regulatory advisors, environmental specialists, and engineers have proven relationships with regulators to expedite the regulatory approval process, and achieve project deliverables within budget and ahead of schedule.

Gemini opened its Dawson Creek, B.C. office in early 2010. This office augment’s Gemini’s capabilities in northeast British Columbia by adding field engineering support and field services.

Gemini’s B.C. office focuses on operations driven projects and solutions. Our B.C. office has been successful with the design of compressor stations, well sites, and pipeline gathering systems since its inception. We are excited for our future in the Dawson Creek community and surrounding areas. S

T h e p o wer o f u s.

Gemini is an innovative professional services firm that provides

ENGINEERING, FABRICATION and MAINTENANCE SOLUTIONS for energy and industrial facilities across Western Canada.

Our stategy is to combine our engineering expertise with our field service capabilities to increase effciency and accountability, which is important to us and the success of our clients.

Gemini

Dawson Creek: 250.782.7114 #829 - 103 Ave, Dawson Creek, BC V1G 2G2 www.geminicorp.ca Engineered Solutions • Field Solutions • Regulatory Solutions

opeRating in noRtheRn BRitish columBia since 1988

Rental equipment foR all

oilfield applications

access mats

manufactuRing Rentals sales

wood Recycling

With over 20 years of experience in the Oil and Gas Industry, be assured that any job will be done safely and effectively.

PO Box 6238 Fort St. John,British Columbia V1J 4H7 P: (250) 787.8474 | F: (250) 787.3097

www.ravenoilfield.com Toll Free: 1.800.799.7188

Diversity is

Key

Raven Oilfield Rentals

In an industry that changes from day to day and is so dependent

today. Included in the rental fleet is the largest inventory of large

on the price of oil and natural gas, adapting through diversity is

volume roll off bins in Fort St. John and the trucks to transport

the major component for companies to stay successful. Raven

them. These bins can be used for any project for dealing with any

Oilfield Rentals is a company that is leading the way when it

domestic waste, construction waste, and recyclable material.

comes to this way of thinking. Now, with three very different and

Raven Oilfield Rentals is fully licensed to transport hazardous

very successful aspects to the company, Raven continues to grow

waste and works hard to find alternatives to reduce what goes to

and become much more than the small satellite rental company

the landfill and what can be recycled.

that they started out as.

Continuing with the recycling theme, Raven Oilfield Rentals Raven Oilfield Rentals is now one of the largest suppliers of wood access mats in Western Canada, and the only company that is based in Fort St. John, B.C. With the industry changing to the point where now the summer is as busy as winter, the demand for access mats has greatly increased over the last few years.

That, combined with the success that oil companies have had when using access mats on their roads, leases and pipeline right of ways for all weather access, hopefully means that the future of the mat industry will stay strong for years to come. There are oil companies that have purchased their own mats and see the benefit in being able to get anywhere at any time. Raven can provide the mats, the transportation, the installation as well as

provides wood recycling. Wood accumulated during lease construction, pipeline clearing, road building and more, can be recycled and used for other purposes. Raven has two large portable grinding machines that are transported to site and will grind any and all wood into various sizes of product that suits the customer’s needs. Rather than trucking load after load of sawdust from town to your site, use the wood that was going to either get burnt or hauled away for next to no money, or grind it into sawdust. Use it for mixing shale cuttings, environmental clean up, or whichever use benefits you. The cost benefit, the reduction of carbon emissions and the safety of reducing the traffic on the

inventory management for any company(s) that own or would like

road, are all reasons for considering wood recycling on your next

to own their own mats.

project.

Top quality rental equipment and even better service is the main

Raven Oilfield currently operates from four locations, with

reason why Raven Oilfield Rentals has been around for almost 25

our head office in Fort St. John, B.C., and branches in Fort

years and has the ability to grow into new areas. With one of the

Nelson, B.C., Peace River, AB., and the newest branch south of

largest inventories of drilling, completions, pipeline, production

the border in Williston, North Dakota. For more information about

and construction rental equipment in the B.C. oil patch, Raven

any of these locations please contact 1-800-799-7188 or go to

still takes pride in what has brought them to where they are

www.ravenoilfield.com.

Bringing the energy to Dawson Creek

By Shayna Wiwierski Wind Park from the City of Dawson Creek. Photos by Peace photoGraphics Inc.

D

awson Creek may be a small community of only 13,000 people, but it’s large enough to attract some big names. Music legends such as Kiss, Alan Jackson, and others have played the 5,000 -seat EnCana Events Centre, and from September 19-21, 2012, another big event is coming to town.

The 2012 Dawson Creek Energy Conference is an annual event that rotates between the cities of Fort St. John, Fort Nelson, and Dawson Creek every year. Formerly known as the Oil and Gas Conference, the event was renamed in 2009 to accommodate the various industries that make up the economy in northeast British Columbia.

“Oil and gas is a big player in the area and Dawson Creek is the first city in B.C. to have wind power,” says Mike Bernier, the mayor of Dawson Creek. “This is why, when the conference was last in Dawson Creek, we turned around and said we should be changing it to the Energy Conference and recognize the fact that it’s not specifically oil and gas anymore.”

The City of Dawson Creek is situated at Mile 0 of the worldfamous Alaska Highway in Northeast B.C. The city is central to the Montney Shale Natural Gas Field, one of the larger natural gas finds in North America.

“We are going through a boom,” says Bernier, who is in his second term of mayor. “A lot of activity in the area has to do with major investments taking place, and a huge part of that is due to the natural gas in the area.”

Bernier says that the average age of residents in the city, which was originally founded as an agricultural community, has gone from 55 to 33 over the past few years.

“A lot more younger people are coming to town for jobs and opportunity. It has changed the way we are building our community.”

Because of the abundance of opportunity in the area, Dawson Creek is recognized as having one of the lowest unemployment rates in the province, at almost zero per cent. People are flocking to the area because of the job opportunities and high wages for workers.

“The economy is great and in the city itself in the past three years we have had over $150 million in investments in the community by way of housing starts, new restaurants, and in-

frastructure. For a small community of 13,000 people, that’s a great thing to see happen.”

More people will be heading to Dawson Creek in September for the annual energy conference, which draws people from around the province, as well as from the rest of Canada. Industry people come to the event to network with their peers, see what’s working and not working, and benefit from the experience via speaker sessions, networking sessions, and a trade show.

“The energy conference is important to the community for a number of reasons; as an opportunity to celebrate the industry, to work with the different businesses in the area and acknowledge them, also to come to the community and see how the town is growing and how it is servicing the industry. I will be at this conference telling companies that if you are not in Dawson Creek, why aren’t you? It’s an opportunity for me to bring that message to them.”

The conference is expected to bring in 300 to 400 visitors to the bustling community and Bernier could not be happier.

“We look forward to hosting this conference. It’s a premier event to showcase and highlight the industry. Although it’s only in the community every three years because of the rotation, we always look forward to hosting it.” S

For more information about the 2012 Dawson Creek Energy Conference please visit www.dawsoncreek.ca/energy-conference-2012.

64 B.C. Oil & Gas Report • 2012

Tumbler Ridge: impressive opportunities Population: 3,000

T

umbler Ridge is not what you think it is – in fact, it’s much more than what you might have heard.

It is a community that continues to redefine what opportunity and quality of life are in Northern B.C. Over the past decade, the town has been a victim of its own success. Their massive marketing and PR campaign that took place over the course of 2000/01, resulted in the sale of over 900 houses at rock bottom prices to people from all over the world. Unfortunately, this image of what Tumbler Ridge once was has been etched in the collective memory of most people living outside of the region. It is with this in mind that the community has resolved to let the rest of the province, and the world, know who they really are today.

The District of Tumbler Ridge is one of the youngest communities in British 66 B.C. Oil & Gas Report • 2012

Columbia. This town of approximately 3,000 people is idyllically situated in the rolling foothills on the eastern slopes of the Rocky Mountains, within the Alaska Highway corridor. Gifted with a diverse topography that has earned the community the moniker, ‘”Waterfall Capital of the North”, Tumbler Ridge sits amidst a wilderness of lakes, rivers, and numerous breathtaking falls. The town site itself is reminiscent of a wilderness village resort equipped with all possible recreational amenities, some of which include a multi- million dollar community centre, a network of 47 non-motorized recreational trails, 300 kilometres of snowmobile routes, and the most challenging/scenic nine-hole golf course in Northern B.C. While Tumbler Ridge’s ‘traditional’ industries continue to thrive, the economic horizon holds the potential for

the establishment of new, uncharted development opportunities. With investigative-use permits issued for virtually every mountaintop, Tumbler Ridge’s wind resources have proven to be a lucrative prospect for new, multi-billion dollar green energy projects being proposed for the area. The final progression of these projects can stand to bring several years of construction-based activity and a core base of employment. Most recently, the District of Tumbler Ridge has welcomed Capital Power Corporation and their 72-turbine Quality Wind Project north of the community. The district is also courting biomass companies for the establishment of a wood-pellet manufacturing plant that would create wealth and new employment from beetle-killed forests, while helping to serve the regions transition to greener sources of energy.

Gifted with a diverse topography that has earned the community the moniker, ‘”Waterfall Capital of the North”, Tumbler Ridge sits amidst a wilderness of lakes, rivers, and numerous breathtaking falls.

Looking ahead, Tumbler Ridge is preparing to accommodate a growing population coming to the community for employment, retirement, and a change of pace. Not only are they working to secure more product and services options, there is also an immense desire to increase the amount and diversity of housing within the community. In an era of endless options the current stock of houses, all of which were built in the early 1980s, offer a limited range that may not suit everyone that wishes to relocate. TumWCC drill.

Photo by Loran Wozniak.

bler Ridge has an immense amount of affordable, developable land and a foundational base of infrastructure that was originally designed to accommodate up to 10,000 residents. Estate lots, accessible houses for an aging population and multi-family developments all have a place in the community’s range of desired housing options.

Let it be known that Tumbler Ridge is redefined. It wishes to be viewed by the outside world as a proud, vibrant, diverse, and sustainable community, where life is as spectacular as its natural surroundings. Tumbler Ridge has already proven that they aren’t going anywhere – now they’re working to reinforce that permanency even further.

For more information please contact Kelly Bryan, Community Development officer at (250) 242-4242, cdo@dtr.ca or visit www.investTumblerRidge.com. S

68 B.C. Oil & Gas Report • 2012

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Stikine Energy (TSXv:SKY): proximity proppants for Northeast British Columbia

Apache rig on Patry Road.

U

nconventional drilling and fracturing has unlocked large-scale shale basins all over North America, with some of the best targets in Northeast British Columbia. Development of these basins requires vast quantities of proppants (man-made or natural frac sand). B.C.’s shale basins have no local proppant supply and the material is transported over great distances at high cost.

Stikine saw an opportunity in 2009 to identify, acquire, and develop new proppant supply near the province’s rapidly developing shale basins. Having focused on identifying raw material types, locations, and processes to generate frac sand, the company is now in a position to develop and dominate supply in the Montney Basin, Horn River, and the Liard Basins.

Stikine’s lead projects are the Angus Project and the Nonda Project, with a combined NPV(8%) of $2 billion and robust cash flow. The projects are commencing permitting in 2012 with target production in 2015.

High-pressure fluids are used in the shale basins to create a fracture network. That network is filled with a permeable proppant to allow oil, liquids, and gas to flow. Frac sand is a preferred natural proppant and different shale basins require different size sand grains and specifications depending on their characteristics.

B.C.’s Montney, Horn River, and Liard Basins are worldclass size, rapidly expanding resources that are being coupled to numerous LNG terminal proposals on the west coast of the province. Currently the liquids-rich Montney is driving 70 B.C. Oil & Gas Report • 2012

Pilot plant.

B.C.’s Montney, Horn River, and Liard Basins are world-class size, rapidly expanding resources that are being coupled to numerous LNG terminal proposals on the west coast of the province. development, but B.C.’s location and potential to sell LNG to Asia is a compelling driver. The bottom line for Stikine is that there is no local proppant supply and the transportation over large distances makes competitor’s prices very high.

The old perception that B.C.’s shale basins were located at the wrong end of the North American pipeline network, that completion costs were too high, and that Henry Hub gas pric-

Unconventional drilling and fracturing has unlocked large-scale shale basins all over North America, with some of the best targets in Northeast British Columbia. es don’t support current development costs are exacerbated by the many new shale basin discoveries suggesting a long-term gas glut in the U.S. and Canada. The reality is far from that perception; the gas in the Montney and Horn River Basins are world-class in size and the Liard Basin may outshine them all.

This alone is attracting Asian buyers, but it’s the geography and proximity to high-priced markets in Japan, Korea, and China that are making it interesting. There is the permitted Pacific Trail Pipeline and plans for multiple LNG terminals to connect B.C. shale gas to tide-water by 2015.

Low Henry Hub prices and a global LNG shortage by 2015 as Asian demand continues to rise are bringing the world’s largest industry participants: PetroChina > Shell ($1B), Mitsubishi > Encana ($2.9B), Petronas > Progress ($1B), SASOL > Talisman ($1B), Exxon Mobile, Royal Dutch Shell, Itochu, and British Gas. Angus and Nonda are conventional open pit mining projects and permit-

ting will commence in early 2012. Prox-

sources could supply an entire lifecycle

imity to the Montney Basin, Horn River

of all B.C. basins, expand to meet de-

Basin (HRB), and Liard Basin delivers strong cost advantage over competitors.

Low cost structure ($70 per tonne) de-

mand, and possibly supply other basins. Both projects have robust econom-

livered for both projects at one million

ics using approximately 50 per cent of

tons per year base case. Very large re-

current delivered frac sand prices. S

Serving the BC Oil and Gas industry for over 30 years

Terry Wheeler

Fleet Commercial Sales Manager Tel: 250-782-9155 / Cell: 250-219-6072 wheels@brownschev.com

Here at Browns’ Chevrolet Buick GMC, we are pleased to be able to provide all your fleet vehicle and accessory demands. We have access to a full range of Chevrolet, Buick, and GMC trucks, vans, and utility vehicles.

With our certified technicians and fully qualified parts staff we have the ability to back what we sell. Please contact Terry or Neil for any or your Fleet or Commercial needs.

Neil Miller

Assistant Fleet Manager Tel: 250-782-9155 / Cell: 250-219-9396 neil@brownschev.com

250-782-9155

www.brownschev.com B.C. Oil & Gas Report • 2012

71

Have you considered an alternative safety approach?

A

s of the first quarter of 2012, four companies are actively pursuing safety management plans

and which is administered by the BC

through the new, optional Alterna-

thority and are considering implementa-

tive Safety Approaches (ASA) program,

tion of an ASA option at their facilities.

which came into effect on April 1, 2011

The ASA was included in changes to

Safety Authority. Ten other companies are in discussions with the BC Safety Au-

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www.carbondrilling.ca 72 B.C. Oil & Gas Report • 2012

the Safety Standards Act 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 alternative safety approach is an opportunity for many businesses to achieve safe outcomes in a more streamlined and efficient manner, particularly if a company is looking at a totally new project or considering a substantial redesign of existing operations,” says Pearse Walsh, the BC Safety Authority’s Leader of Business Research and Development.

There are two options available under the ASA program: • A safety management plan which 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 and refrigeration, electrical and gas.

• An equivalent standard approach which allows for limited equivalency or substitution of a regulation in one of the three technologies noted above.

“Safety remains the top consideration under the ASA options even as we look at aligning safety with advances in technology and best practices,” says Walsh.

“The ASA program allows opportunities for trade and investments and encourages companies to develop a strong safety culture.”

The four companies actively pursuing an ASA approach are now developing safety management plans for their projects and facilities under the Alternative Safety Approaches program.

For more information about the Alternative Safety Approaches program, visit http://safetyauthority.ca/permits-approvals/alternative-safety-approaches or email Pearse.Walsh@safetyauthority.ca.

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

The 10 other companies looking at ASA options represent a variety of industries including oil and gas, pulp and

paper, and bioenergy.

At the BC Safety Authority we keep people safe. As the province’s delegated authority, we mandate the safe installation and use of technical equipment, and continuously assess the risk to human safety that comes with that installation and operation. We are selffunded and not-for-profit. We admin-

ister safety standards through education, and through issuing permits and licences. We also enforce compliance to standards to ensure consistency and fairness, and conduct assessments – particularly inspections of high-risk situations. We continuously research trends to advance the standard of safe practices in our province. S

B.C. Oil & Gas Report • 2012

73

Kamber’s “can do” attitude Kamber Energy Services

T

he world-class natural gas resources in northeast Brit-

sessing the needs of its

ish Columbia’s Horn Riv-

there is enough equip-

er Basin (HRB), Liard Ba-

ment

sin, and Montney Basin

tomer demand. Kamber

have attracted billions of

has recently added an

investment dollars from

additional

many major producers.

HydraRig coiled tubing

It’s no accident that

trailer equipped with a

an increasing number of

HR680 injector. The unit

these producers are turn-

is equipped with a NOV

ing to Kamber Energy

CTES Orion IV data ac-

customers and expanding its fleet to make sure to

handle

2012

cus-

NOV

Services for a variety of

quisition system. Kam-

completion and produc-

ber has also added a 2012

tion needs when it comes to their wells in the area.

Kenworth with 50T crane, a heated chemical/BOP trailer, and

Founded in 2006 by Terry McLeod, Kamber is focused on

a 2012 Kenworth tractor with Enerflow Industries 10K Fluid

providing its customers with a variety of coiled tubing and ni-

Pumper. This will bring Kamber’s fleet to five 180K nitrogen

trogen services from its Fort St. John, B.C. location.

pumpers, two Class III long reach coiled tubing units, two reel

“Since we know the region well and are strategically located

trailers, two nitrogen bulkers, two 45T+ cranes, two chemical/

in the heart of major gas plays and other opportunities, we can

BOP trailers and two 10K twin fluid pumps.

often reduce time for on-site work performed and transporta-

Kamber’s nitrogen and coiled tubing units are operated by

tion to our customer’s sites in northeast B.C.,” says McLeod.

some of the best operators in the industry. Overseeing Kam-

“This can amount to significant cost savings for our customers.

ber’s exceptional field staff are nitrogen services manager Jamie

These cost savings are more important than ever to producers in

Lawson and coiled tubing manager David Smith. Kamber’s

the current low natural gas price environment. Our knowledge

management and supervisory personnel have over 70 years of

and expertise allows us to focus on what we can do for our cus-

combined expertise.

tomers. We are not only an energy services company, we are a

With its modern and innovative fleet, Kamber offers its

solutions company.”

customers a full range of services including horizontal well

Known for supplying premium oilfield equipment and un-

completions, cleanouts, acid stimulation, perforating, fishing,

matched service to northeast B.C., Kamber is continually as-

milling, logging, N2 cleanouts, N2 purging, and nitrified acid assists.

In addition to ongoing day-to-day business, Kamber also takes great pride in being British Columbia’s largest independent provider of coiled tubing and nitrogen services.

“We support the local economy and wherever possible hire and train local people,” adds McLeod.

Pilot Car ServiCe

It is easy to see why Kamber’s “can do” attitude is making them the “go-to” supplier of nitrogen and coiled tubing services in Northeast British Columbia.

Kamber is an active member of Energy Services BC, ISNet-

Dawson Creek, BC 74 B.C. Oil & Gas Report • 2012

250-719-6010

world and Complyworks. For more news and information on Kamber Energy Services visit www.kn2.ca. S

maiN OffiCE KAmBER ENERgy SERvICES 6923-87A Avenue

We are THE Coiled Tubing & Nitrogen Experts in North-East British Columbia!

Fort St John, BC

Kamber Energy Services is the only privately

v1J 0B4

owned coiled tubing and nitrogen (N2) pumping

Phone:

company to be incorporated in British Columbia

Toll Free: 1.888.785.1515

and based in Fort St. John. While Kamber’s

250.787.8812

focus is NE B.C., we are licensed to serve oil and

fax: 250.787.8687

gas producers in Alberta, British Columbia and Saskatchewan. Kamber has achieved its COR (Certificate of Recognition) and is a member in good standing of ISNetworld and ComplyWorks.

WHy KamBEr? There are three main reasons why you should choose Kamber as your energy services provider:

• Locally Owned & Operated • Exceptional Service • Innovative Equipment

www.kn2.ca

Hello, B.C.

S

ince the Vancouver 2010 Olympic and Paralympic Games, the world is fully aware of just how ‘super’ and just how ‘natural’ British Columbia is. Exciting cities and resorts like Vancouver, Victoria, and Whistler may get most of the recognition but we really know what makes B.C. beautiful – our forests. Two-thirds of British Columbia’s land base is forested1. This includes 25 million hectares of old-growth forest—trees that are at least 250 years old. On the Pacific coast, trees can live for as long as 1,000 years and in the Interior, 120 to 140 years2. About 96 per cent of the forested land is coniferous, giving British Columbia approximately half of the national softwood inventory1. Canada’s wettest forests are located on the B.C. coast, while the nation’s driest forests are found in B.C.’s Southern Interior2.

Wood is the dominant industry in British Columbia manufacturing. Primary industries such as logging are major employers on Vancouver Island and in the northern and interior regions of the province. Workers in this industry are not all engaged in falling trees or driving logging trucks. Occupations in natural and applied sciences account for a big share (22 per cent) of total employment in the forestry and logging industry. Trades, transportation and equipment operators (eight per cent) are mainly employed driving logging trucks and operating heavy equipment. One in 12 is employed in a business, finance and administration (five per cent), or management (three per cent) occupation2.

76 B.C. Oil & Gas Report • 2012

Forest products are the province’s most important export commodity, historically accounting for more than half of the total value of B.C.’s international goods exports2. Non-timber uses of British Columbia’s forest lands, such as for range and grazing, recreation, watershed protection, wildlife habitat or simple visual enjoyment, are part of a continuing emphasis by the provincial government on integrated resources management. Recreational use of forest and wilderness area is an important component of B.C.’s tourism industry1. Tourism contributed $13.1 billion to the provincial economy in 2008, up 35 per cent since 20023.

Since 95 per cent of B.C.’s land base is publicly owned, the management of the forest resource rests largely with the provincial government1. 14.27 per cent, or more than 13.5 million hectares, of British Columbia is protected – more than any other province in Canada3. Many mammalian species that have become rare in much of the United States still flourish in British Columbia4. Under British Columbia’s Forest and Range Practices Act, forest companies must develop forest stewardship plans that outline how they will meet objectives set by government for soils, timber, wildlife, water, fish, biodiversity, and cultural heritage resources, and they are held accountable for their on-the-ground performance. If these don’t show a commitment to environmental protection, what does? Forest land generates revenue, while government recreation and silviculture programs create employment opportunities1.

SUMMIT LIABILITY SOLUTIONS IS WESTERN CANADA’S LEADING ENVIRONMENTAL SERVICE PROVIDER. Offering turnkey environmental services, Summit focuses on regulatory compliance and innovation when delivering cost effective liability management solutions.

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This innovative, patent pending system combines precision GPS guidance and automation with custom web-based GIS software to control drilling waste management operations and eliminate recurring non-compliance issues.

Summit Earth™ S3-S Navigator (S3-S Navigator) is the custom GPS guidance and automation system engineered to regulate and ensure compliant disposal operations based on compliance parameters set by Summit. These include:

Summit Services Complimentary, integrated environmental services executed through regulatory expertise and technical proficiency in the following fields:

- Boundaries of disposal and non-disposal areas

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Summit Earth™ Desktop is the custom web-based GIS software and data entry platform engineered with powerful compliance management and reporting capabilities. These features include:

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Lloydminster Office

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Head Office

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British Columbia is also Canada’s second-largest natural gas producer. The oil and gas industry continues to see tremendous growth particularly in northeastern B.C.3, increasing the demand for lands for disposal operations. It also results in the increased need for infallible environmental protection in the energy and resources sector. The Summit Earth™ Compliance Management System is a long overdue, technological innovation that ensures protection of our natural resources throughout the disposal of drilling wastes within our precious forests. The Summit Earth™ S3-Sump Navigator regulates sump disposal operations based on compliance parameters entered into the system protecting our soil and water quality. The S3-Sump Navigator is further partnered with custom web-based GIS software and a data entry platform that has been engineered with powerful compliance management, mapping and reporting capabilities. The combined result is the first and only innovation in the drilling waste management industry that is truly engineered to ensure compliance parameters are met. The direct result is the protection of our natural resources and the proper management of drilling operations through technology and innovation.

British Columbia is Canada’s gateway to the Asia-Pacific3. Between the Northern Gateway Pipeline and China’s vow to build 36 million affordable housing units during the 2011-2015 period5 it is crucial that the energy and resources sector ensure soil and water quality is maintained from their non-renewable operations so forest management and silviculture can sustain an equally important renewable resource. The Summit Earth™ Compliance Management System is the innovative industryleading system developed by Summit Liability Solutions Inc. (Summit) to ensure British Columbia’s splendor sine occasu (splendour without diminishment).

A proud member of British Columbia industry for nearly seven years, Summit is Western Canada’s leading environmen78 B.C. Oil & Gas Report • 2012

tal service provider with offices in Fort St. John, Calgary, Lloydminster, Swift Current, and Weyburn. Summit is focused on environmental stewardship through innovation, technical proficiency, continuous training, and service excellence. The Summit Earth™ Compliance Management System is the pinnacle of achievement for a company who believes there is a better way to service our customers. Summit is excited to lead by example with the province in developing and providing the tools and technology to ensure a sustainable future. Please visit our website at www.summitls.ca for a full demonstration of the Summit Earth™ Compliance Management System.

Footnotes 1

BritishColumbia.com. Information on BC: Forestry in British Co­ lumbia. Vancouver: Shangaan Webservices Inc., 2012. <http:// www.britishcolumbia.com/information/details.asp?id=36>

2

Government of British Columbia. A Guide to the BC Economy and Labour Market: Forestry & Logging. Victoria: Province of British Columbia, 2011. <http://guidetobceconomy.org/major_industries/foresty.htm>

3

Government of British Columbia. B.C. Facts. Victoria: Province of British Columbia, 2011. <http://www.gov.bc.ca/bcfacts/>

4

Canadian Tourism Development Corporation. Welcome to Canada: British Columbia. Kelowna: Spincaster Productions Inc., 2009. <http://www.officialtourism.ca/BC.aspx>

5

China.org.cn. China urges expanded financing for affordable hous­ ing. Beijing: 09016475 Beijing public security No.110 108 006 329,

2012.

<http://www.china.org.cn/china/2012-02/20/

content_24685115.htm> S

Cascade Energy Services LP is a specialized trucking company that provides a range of production services to the energy, utility and construction industries through its two divisions, Cascade Services and JaCar Energy Services.

cleaning, pressure testing and other field services.

Over the years we expanded our business and now serve our customers through branches in northeastern British Columbia, throughout Alberta and southeastern Saskatchewan.

Cascade has a vast array of trucks including vacuum pressure trucks, hydro-vacs, steamer trucks, hot oilers, tank trucks, combination units and sour sealed tankers. We provide customers with dependable and professional service for fluid hauling, turnarounds, fracs,

Cascade has built and maintained long-term relationships with customers by continuously providing safe, reliable and quality service. For all your fluid hauling and production service needs call dispatch at 250.785.0236 or 403.223.4566.

The changing face of geosciences in the 21st century What you need to know to survive

By Larry Herd The changing geosciences world It wasn’t long ago (at least it seems like just yesterday) that the domestic upstream oil and gas industry was still in the exploration phase – looking for new reserves, exploring for new play concepts and enhancing technology to find new resources.

Our geosciences disciplines were generally isolated disciplines that got together as technical teams but operated as generalists within their silos. The majority of geoscientists were involved in the exploration side of the business, and we spent our time and energy looking for new and yet undiscovered resources.

Now, the industry compass has swung around to other directions. Today, the most hydrocarbons being “discovered” are by the drill bit as unconventional resources. The new resource plays are based on resources that we’ve known existed in the ground for years – we just couldn’t economically get them to the surface. The “mining” of oil and gas (oil shale, tight gas, heavy bitumen) is now a materials-handling process rather than true exploration. Much of our current technology advancement is in the area of horizontal drilling, rock mechanics, and induced fracturing – all designed to assist in the extraction of hydrocarbons from known areas and to bring the resource to market.

The geoscientist of today For the benefit of the undergrad student peering into the looking glass trying to get a glimpse of our industry, I have classified today’s geoscientist into three broad classifications.

• The Explorationist: There are still a myriad of small to medium-sized companies in the exploration game, and they are doing a great job of finding oil (since natural gas is a four-letter word today). Geoscientists still play a vital role in finding these resources, and many senior geologists and geophysicists can be found at the helm or in the management team of most small outfits. They have a general knowledge of many aspects of their respective fields – seismic including acquisition, processing and interpretation, and geology – depositional environments, core and cutting analysis and play-making, having all cut their teeth early in their careers with large oil companies or major service companies.

• The Exploitationist: If you “follow the money” however, you find that most investment dollars are flowing into the unconventional resources. These geoscientists work as part of an integrated team to develop unconventional resources. They 80 B.C. Oil & Gas Report • 2012

possess more specific knowledge of resource extraction technology and apply geology and geophysics to rock mechanics, pore connectivity, and fracture analyses.

• The Specialist: One segment of our discipline, which I believe is a growing component, is the geoscientist who excels in a specific field of geology or geophysics. These are the ones most likely to speak at technical luncheons, and who understand and do research in a specific narrow field of study. They are the technical leaders in whatever field they work in, and are usually, but not always, found in major service or oil and gas companies.

A primer for the gen-Y geophysicist What do you need to know to survive once you “get there”?

Well, here are my credentials: I graduated from the University of Manitoba in 1978 and am a full-fledged stereotypical baby boomer. My parents are classical “builders” (traditionalists) and my children (a relative term) are generation Y. I have managed a service company of baby boomers, gen-X and gen-Y staff for many years and I have at least a cursory understanding of the issues. For my sources of information, I flagrantly plagiarize from reliable Internet sources like Wikipedia and various blogs, rely on innuendo and hearsay, discuss issues with my peers over beverages and read the odd professional management article.

All in all: sound and reliable sources of fully pedigreed information – see note of apology below.

Kids these days... “They waste time chatting with co-workers.

They show up for work in shorts and T-shirts. They plug in their

music, text on their phone and try to work at the same time.

And then they take the afternoon off to go skiing.” (Overheard in a management meeting).

Welcome to the “Age of Entitlement”, the brave new world of generation Y. Gen-Yers value positive reinforcement, autonomy, positive attitudes, diversity, money, and technology. They have grown up in prosperous and tranquil times and as a result, have a very optimistic outlook on life. They demand more input into their learning regimen, crave supportive feedback and lots of variety in the workplace, and expect good salaries to spend on multitasking gadgets. They are the generation of “multi-taskers” and utilize technology to read, listen, type, and talk all at the same time.

Why understanding the generation gap is important to the Gen-Yer You (the gen-Yer) need to understand the relational working environment in which you (hopefully) find yourself. I call it the “Totem Pole Concept of Corporate Hierarchy” – chances are that when you start into your new role as a young geoscientist, you will be at the bottom of the totem pole. Your boss will likely be a gen-Xer and his or her boss will likely be a baby boomer. If you think your boss doesn’t understand you – try talking to his or her boss!

Gen-Xers believe in investing in their own development rather than in their organization’s and they embody the entrepreneurial spirit. They are cautious about investing in relationships with employers because experience has shown that these

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Fort Nelson’s Oil & Gas Service Sector is Ready for Business: From frac sand and fabrication to hot shot services and retail opportunities, you can depend on Fort Nelson businesses to deliver. Today’s diversified business is increasingly attracted to the outstanding career and lifestyle opporunities in our magnificent natural setting.

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www.NorthernRockies.ca B.C. Oil & Gas Report • 2012

81

relationships are not reliable. To a gen-Xer, this may mean two-

Supportive tips to gen-Yers

week’s notice. They usually have clear goals and prefer man-

As a guideline to help you, the gen-Yers:

aging their own time and solving their own problems rather

• Experience does count. Learn from others’ experiences.

than having them managed by a supervisor. This generation

• If you don’t know – ask. If you don’t get an answer, ask again.

works hard but they would rather find quicker, more efficient

• Continue to network – your bosses may not understand, but

ways of working so that they have more time for fun. While the

your network of peers is an invaluable tool for both you and

baby boomers worked hard to move up the ladder, gen-Xers are

the company for which you work.

working hard so that they can have more time to balance work

• Technology is a tool, not an answer. Use the technology to

and life responsibilities. When communicating with this gen-

its fullest but remember that technology only assists in the

eration, use email and texting as your primary tool, and talk in

creation of knowledge. Auto-picking the 3-D seismic survey

short soundbites to keep their attention. Keep them in the loop

on a workstation provides the data picks but doesn’t tell you

and ask them for feedback regularly.

how to interpret the trap.

Baby boomers, who coined the phrase “workaholic”, value peer competition. They work hard because they view it as neces-

Supportive tips to gen-Y bosses and their corporations

sary to climb the ladder of success, which is a fundamental be-

As a guideline to help the supervisors of gen-Yers:

lief. Boomers are the “show me” generation and body language

• Don’t manage; mentor. Don’t assign; explain. They thrive on

is important when communicating. When dealing with boom-

learning through mentorship.

ers, answer questions thoroughly and expect to be pressed for

• Use action words, and challenge them at every opportunity.

the details, and present options to demonstrate flexibility in

• Don’t dictate; solicit. Gen-Yers appreciate interaction, and re-

your thinking. They embrace the team approach to business and as long as you perform to their standards, they will accept you as an equal. They don’t appreciate rules for the sake of hav-

sent being talked-down to.

• Don’t ignore; respond. Gen-Yers have little patience for bosses who don’t respond. Email is preferred.

ing rules, and they are not afraid of challenging “the system”.

• Don’t conceal, communicate. Provide an open-door policy

Baby boomers have strong principles and will fight for a cause

and make sure you talk to your gen-Yers. Seek their feedback

if they believe in it.

and provide them with feedback regularly.

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• Use humour and create a fun learning environment. Don’t take yourself too seriously.

• Encourage risk-taking. Encourage them to break the rules so that they can explore new ways of learning.

As a leader of a corporation whose employees span the three generations, you might consider restructuring leadership across the generations, providing compensation, benefits and incentives to satisfy each generation. The traditional boomer’s “onesize-fits-all” strategy won’t work. Stop trying to communicate using the standard company line – effective corporate communications must now include multiple formats and styles.

Closing note: the scale-up challenge As an industry, we are facing an incredible dilemma. Our brain trust demographic is retiring, and we have a small group to fill their shoes. While the job market should be running full throttle to replace us, the rapidly departing baby boomers and early gen-Xers, hiring is still subjected to the whims of the ebb and flow of oil economics. Yesterday, all of the new grads were offered jobs; today, there are many who go without an inter-

Author’s note: An apology to my sources (Sharyn Devereux, Cath­ erine Jones, Shane Austin, Jennifer Blanchard and Ray Williams); I have mutilated this discussion so much over the years so as to make all references from reputable sources indistinguishable from my own.

If you recognize any of the text as direct quotes, I will just plead igno­ rance so I ask your indulgence.

view. As soon as the industry regains its traction and needs to fire on all cylinders, where are the experienced talent to drive business forward? We had better figure out more ways to keep our young people enthused about the geosciences or we won’t have replacements coming in our stead.

About the author: Larry Herd is the president of RPS Boyd PetroSearch, a geophysical consulting arm of RPS Energy, and is also the 2011-2012 president of the Canadian Society of Exploration Geo­ physicists. S

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How the oil & gas industry can use A/R financing to better manage cash flow

By Dan Effa

B

usiness owners often feel like banks don’t have any money to loan right now, and tight loan restrictions are a reality for most businesses today. With bank loans no longer a feasible option for many companies, business owners need to seek out alternatives to secure the capital needed to meet payroll, cover seasonal adjustments, and seize market opportunities.

An increasing number of companies, particularly in the oil and gas industry, are using financial services, called factoring, to secure the quick capital that is crucial to the operation of their business. As an alternative to traditional bank lending, factoring provides businesses with capital when needed on a flexible formula basis that is proportional to sales. The factoring “line” grows as the sales to credit-worthy customers increase, giving clients an opportunity to capitalize on market opportunities.

In the oil and gas industry, it’s not uncommon for a business owner to be in a situation where they’re depending on a cheque from a major job to arrive in order to cover payroll or other expenses.

Even the healthiest, most prosperous businesses sometimes end up in such situations, needing financing to help smooth out the cash flow bumps. The owner of a well-established B.C. trucking company in the oil and gas industry recently had a number of critical cash flow challenges arise that threatened the owner’s ability to make payroll on time. Not only had the company recently undergone a change in its partnership structure, but accounting problems

84 B.C. Oil & Gas Report • 2012

related to a former employee coupled with late government remittances had created a critical financial situation.

Making matters worse, the company’s financial standing was dependent on one high-paying customer, putting their cash flow at the mercy of when the customer decided to pay their bill—which could range anywhere from 30 to 90 days. With payroll to meet, this business owner needed fast access to the capital that was critical to running her business.

Liquid Capital was able to provide the working capital this client needed to pay her bills and payroll on time during the payment waiting period. Their partnership lets the owner rest easy that she’ll be able to pay her bills and her employees on time regardless of whether her customer’s payment is delayed.

Factoring services have become increasingly important to the gas and oil service industry – 25 per cent of all of Liquid Capital’s clientele are in this field. Factoring represents a $2.3 trillion industry worldwide, and volume has increased 62 per cent over the past five years worldwide, and by nearly 21 per cent from 2010 to 2011 for Liquid Capital in Canada.

Factoring is a cost-effective, flexible, and responsive form of trade financing that allows clients to grow and prosper in both good and bad economies. At some firms such as Liquid Capital, there are no minimum revenues or longterm contracts required, so the business owner is in charge of the total cost. In addition, getting money from a factoring company doesn’t make a company beholden to any banking covenants or

the stringent requirements of equity partners. Factoring companies not only provide working capital but a full outsourced credit and accounts receivable management solution. Companies often choose to continue to use them for credit and collection services alone even after the need for additional cash has passed, with many businesses finding it more efficient than creating their own departments to handle these services.

Each company’s cost of factoring is based on their risk, industry, and market position. While critics say it’s more costly than lending, those in factoring beg to differ. Factoring companies make it possible for businesses to continue operating and growing without cash flow problems slowing them down. Additionally, factoring can be cheaper than a bank loan that’s not in good standing, and the benefits of getting cash to enable company growth is priceless.

Dan Effa is the owner of Liquid Capital Pacific Corp. in Surrey, B.C. Liquid Capital is an international network with more than 60 offices across North America.

For more information on Liquid Capital, visit financingsuccess.ca. Dan Effa can be reached at (877) 326-3332, L. 111 or by email at deffa@liquidcapitalcorp.com. S

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Smart health & safety solutions with

Jetsue Ventures Ltd.

By Janette Taylor

A

uditing requirements have revolutionized how health and safety management is viewed in the petroleum, mining, and forestry industries; resulting in a transformation of how health and safety programs are developed and implemented. Despite a few bumps in the road and some protests, I do believe the awareness achieved through the auditing process makes people working and living in around the resource industries healthier and safer.

Those of us that have been around for some time have been exposed to various health and safety management systems throughout our careers. We’ve worked in environments with both first-class programs and non-existent programs. Most of us have witnessed the benefits of a good program and, sadly, the disasters of non-existent ones. We have also witnessed, just as sadly, the disasters of poorly implemented generic programs.

In the past, resource companies (oil and gas, mining, and forestry) relied on their procurement or vendor relations department

to ensure that their service provider (a company that performs a service for them) not only had a legislatively compliant health and safety program in place, but that it was implemented effectively. This was an arduous task and involved verification of two very different aspects of a health and safety program. Verification often fell through the cracks and preventable accidents happened. As a result owner, clients began seeking the services of contractor and supplier management companies, such as ISNetworld and PICS. It is the two different aspects mentioned above that have resulted in the two different types of evaluations done to your health and safety management system. The two most common types of evaluations are those performed by your owner/clients contractor and supplier management company and COR (Certificate of Recognition). Many of you rightfully ask, “Why do we need to comply with both?”, the answer is that both evaluating authorities look at and for different things as explained below:

DEL Equipment carries oilfield service bodies, Effer cranes and Autocrane service bodies and much much more.

COR - (Certificate of Recognition) A COR safety program audit is a comprehensive and objective evaluation of the design and effectiveness of a safety program. The audit covers the basic elements of a health and safety management system as outlined in industry recommended practices. The auditor looks to see that the service provider has backup paperwork to prove that the system is implemented and that training is being done, meetings are held, job safety analysis’ (JSAs) are completed, and all appropriate forms, logs, checklists, inspections, evaluations, and orientations are in fact being done on a consistent basis.

Certifying partners most commonly used in the oil and gas industry include Enform, Alberta Association for Safety Partnerships (AASP), Alberta Construction Safety Association (ACSA), Alberta Motor Transport Association (AMTA), and Alberta Safety Council (ASC).

Call DEL for all your truck mounted equipment requirements!

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86 B.C. Oil & Gas Report • 2012

Contractor and supplier management companies Contractor and supplier management is the managing of outsourced work performed for an owner/client. Oil and gas companies that outsource work to contractors use contractor and supplier management companies to manage those contractors’ health and safety data, insurance information, training programs, and specific documents that pertain to the contractor and the owner/client.

ISN®, COR, SECOR, ISO, AISC Safety and Quality Certification Preparation

Responsible management based on nationally and internationally respected standards Our Technical and Standards Communicators provide certification assistance through the creation of, or enhancement to, your Health and Safety or Quality Management System.

We work with you to ensure that your management system is easy to implement and compliant to specific standards.

You are ready to contact your auditor or send your selfaudit to your auditing agency when: • Your management process reflects your documented management system.

• Your historical files demonstrate compliance to your policies and procedures.

• You can provide 3 to 6 months of completed reports, checklists, forms and logs.

Janette Taylor

|

We perform our work to exacting standards through programs such as: • ISNetworld (ISN)® • PICS Contractor Screening and Contractor Management • ComplyWorks® • International Standards Organization (ISO) • Certificate of Recognition (COR) • Safety Accord Forest Enterprise (SAFE) • American Institute of Steel Construction (AISC)

250-783-9273

Box 223, Hudson’s Hope, BC V0C 1V0

|

janette@jetsue.ca www.jetsue.ca

We collaborate with contractors as we develop their health and safety management system. We do our best to ensure they understand their obligation to safety as we guide them through every step of their program.

A typical contractor management evaluation is a comprehensive and objective review of the content and wording of a safety program and ensures every element of provincial and federal legislation as it pertains to the work the service provider does is included. The reviewer ensures that specific legislation is addressed for each element of safety in the safe work practices, safe work procedures, and safety policies. The reviewer ensures that service providers meet insurance, WCB, and owner/client specific requirements; but is not concerned with how the system is designed and typically does not verify that it is properly implemented.

While there are numerous contractor and supplier management companies, those commonly used in the Peace Region include ISNetworld, ComplyWorks, and PICS. The next question you may have is what if each owner/client uses a different contractor and supplier management company? The answer is simple, if you want to work for a particular owner/ client you have to comply with their requirements and become a member of their contractor and supplier manage-

ment company. You then need to ensure that your health and safety program is, and stays, up to date with the requirements of each.

This process can be extremely demanding for small and mid-size contractors, especially those who do not have a safety consultant experienced in designing, developing, implementing, and updating manuals, forms, and policies.

And then there’s maintenance, a major factor.

This is where smart health and safety solutions with Jetsue Ventures come in.

We collaborate with contractors as we develop their health and safety management system. We do our best to ensure they understand their obligation to safety as we guide them through every step of their program, encouraging their input and modification to draft versions of the health and safety manual prior to finalizing it. The purpose of the manual is to document the safe work practices, procedures, and policies and to explain how to implement the system that has been designed. The files, orientation packages, and training materials are tools provided by Jetsue Ventures to make ease of implementation and em-

ployee and subcontractor compliance to the program possible.

Some believe that owner-operators and contractors should easily be able to develop their own health and safety management system. The fact is that most simply do not have the expertise, computer skills, and/or time to devote to researching provincial and federal legislation, industry recommend practices, and evolving client requirements. There must be a smarter way you say! And there is, hire Jetsue Ventures to explain the requirements, set up your system, and get you and your employees on the road to compliant implementation. The smart health and safety solution allows for contractors to safely focus on the billable services they provide to owner/ clients while securing more quality time with their family.

Thank you for the opportunity to share information about our smart health and safety solution! For more information about Jetsue Ventures Ltd., please visit our website at www.jetsue.ca or contact Janette Taylor at 250-783-9273, or at janette@jetsue.ca. S

STAY SAFE BC Resource Roads on

• Follow road orientation signage • Be trained on proper radio use

• Drive to road and weather conditions • Check vehicle load If you have questions about workplace safety, call WorkSafeBC’s Call Centre at 604 276-3100, or toll-free in B.C. at 1 888 621-SAFE (7233).

88 B.C. Oil & Gas Report • 2012

• Download resource road videos from www.worksafebc.com

SYNERGY LAND SERVICES LTD., a full service land broker, opened its doors in Calgary in 2006. The company services clients in the oil and gas, minerals, power, renewable energy, highways, and telecommunications industries.

Over the past five-and-a-half years, the company has grown steadily and methodically to a staff of 50 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 plans are underway for an office in Brandon in 2012.

FORT ST. JOHN – THE “ENERGETIC CITY” Recognizing a growing need for land services in Fort St. John, Synergy has set up shop and is ready to do business in this bustling city as well as in the not-too-distant Grande Prairie.

On top of excellent land services, Synergy provides everything from First Nations consultation, environmental services, and Landscape Analysis Tool (LAT) planning and reporting, to pre-disturbance site assessments and wildlife assessments and surveys.

For more comprehensive information about the services we offer, please visit our website, at: www.synergyland.ca. We would be pleased to answer any questions you have and can be reached, toll-free, at 1-877-961-LAND (5263).

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Petroleum Technology Research Centre leads research into enhanced oil recovery

T

wo of the most pressing problems in the Canadian oilpatch today relate to the production and use of

water during extraction processes, and the sharp tailing off of production from oil wells – particularly in heavy oil areas,

FORT NELSON, BC

Charter Inquiries Villers Air Services

Box 328, Fort Nelson BC V0C 1R0 Located at Fort Nelson Airport 90 B.C. Oil & Gas Report • 2012

but also in conventional oil reservoirs where often 50 per cent or more of the oil remains in the ground.

The Petroleum Technology Research Centre (PTRC) has been a world-leader in developing enhanced oil recovery technologies that help improve oil production, while also lessening environmental impacts. As such, both of these challenges to the oil industry – water production/ use and sharp declines in oil recovery – are tailor-made for new field trail projects announced by the PTRC in early 2012.

The Western Economic Partnership Agreement (WEPA) has contributed over $800,000 to develop new field-testing technologies through the PTRC and its corporate and research partners. In a two-part program, researchers at the University of Regina will help develop new water filtration methods and ceramic membranes in the lab with the intention of scaling up those technologies for use in field testing.

In the second part of the program, the PTRC is working with several mediumsized companies to actually build and refurbish water processing and separator units for the field, in order to capture

samples, separate the produced fluids in a field setting, and optimize the removal of oil from produced water in real time.

Such in-situ technologies could be scaled up but still remain transportable, offering small- and medium-sized producers the opportunity to eliminate one of the most costly sides of their operations – namely disposing of produced water. If the PTRC’s field testing goes well, it may be possible to use produced water from oil reservoirs for other industrial and agricultural uses rather than be concerned about their safe disposal.

The PTRC is also working with a Dutch research not-for-profit company – INCAS3 – to test their micro-sensor technologies in heavy oil reservoirs. One of the biggest problems with oil production, for instance in the heavy oil zones of Saskatchewan, is that initial production from these reservoirs – called cold heavy oil production with sand (CHOPS) – leads to a rapid decline of production in a short period of time. It is suspected that this occurs because the amount of produced sand with the oil leads to channels, or “wormholes”, in the reservoirs that cause the production rates to drop.

The micro-sensors produced by INCAS3 could be fine-tuned to help map these wormholes, thus leading to more focused drilling, waterflooding, and other enhanced oil-recovery methods. If the sensors prove their worth in heavy oil locations, they might be tried in other sharply falling production zones like the Bakken, or for helping to map gas reservoirs like those in northeastern British Columbia to assist in characterizing these formations to better optimize recovery.

“Linking the PTRC’s research with INCAS3’s proven technologies should provide exciting new windows for enhanced oil recovery in Saskatchewan,” notes Dr. Malcolm Wilson, CEO of the PTRC. “We’re sure that our research will help significantly increase recovery from resources not just in Saskatchewan, but globally wherever similar reservoirs exist.”

“We’re sure that our research will help significantly increase recovery from resources not just in Saskatchewan, but globally wherever similar reservoirs exist,” comments Dr. Malcolm Wilson, CEO of the PTRC. As the PTRC enters its fifteenth year of

methods. The company continues to

research in 2013, it is poised to help

push the boundaries of enhanced oil

develop Canada’s – and the world’s –

recovery.

hydrocarbon resources with more en-

For more information on the PTRC’s

vironmentally sound and economical

EOR research, visit www.ptrc-steps.com. S

B.C. Oil & Gas Report • 2012

91

SPE Canadian Unconventional Resources Conference Fundamentals, Fracturing, Economics, and Externalities: Getting it from the Source October 30 – November 1, 2012 Calgary, Alberta, Canada • Calgary TELUS Convention Centre www.spe.org/events/curc

A

s unconventional resources become increasingly important for global supply, cross-functional

asset teams must create development plans that satisfy technical and econom-

tion engineering and well testing, reservoir characterization and simulation, and EOR methodologies. Many papers will include case studies of completed

ic requirements, as well as environmen-

or existing operations, as well as updates on new developments.

tal and regulatory issues stemming from

Also, there will be plenary sessions

hydraulic fracturing. The need for factual information and knowledge transfer be-

and an engaging keynote address that focuses on key issues and topics perti-

tween disciplines has never been greater.

nent to investment and development

The SPE Canadian Unconventional Resources Conference will be held

of unconventional resources in Western Canada and North America.

from October 30 – November 1, 2012

Complementing the technical pro-

at the Calgary TELUS Convention Cen-

gram is an exhibition with new product demonstrations and innovative displays

tre in Calgary, Alberta, Canada. With the theme, “Fundamentals, Fracturing, Economics, and Externalities: Getting it from the Source,” the event offers the lat-

courtesy of some of the top companies in the field.

est technologies and techniques related

The 2012 conference builds on the success of last year’s event, which was

to the recovery of these resources.

attended by more than 1,800 interna-

The conference features a high-quality technical program with paper presenta-

tional oil and gas professionals, and approximately 60 exhibitors.

tions on hydraulic fracturing of vertical

SPE is proud to once again present

and horizontal wells, regulatory and environmental issues, geophysics and geol-

this must-attend event that provides collaborative learning, documentation, and

ogy, drilling and completions, produc-

interdisciplinary sharing.

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92 B.C. Oil & Gas Report • 2012

Technical Program committee chairpersons Doug Hollies Vice-president, engineering, Codeco Energy Group Doug Hollies graduated with a B.Sc degree in chemical and petroleum engineering from the University of Calgary.

He has 25 years of drilling and completions engineering experience in the Western Canadian Sedimentary Basin. Since 1990, he has been involved in well design, field operations, and research and development (R&D) in horizontal well developments for Gulf Canada, Husky, PanCanadian, and Encana.

Hollies spent two years in the offshore drilling department with Gulf Canada before he moved to the Western Canada Drilling Group. After spending seven years in conventional oil and gas, he moved to Husky Oil to work as a senior drilling engineer with the Foothills Deep Gas group. His work in the Pincher Creek and Fort St. John areas of the Rocky Mountains’ Eastern Slope gave him many insights into the world of tight gas drilling and completions. In 1997, Hollies moved to CS Resources to become the horizontal drilling and completion superintendent and begin a 15-year career segment in conventional and thermal heavy oil. It also included seven years in the R&D of magnetic raging systems, wire line coring, thermal well structural stability, and sand control technology.

Hollies then joined Codeco Consulting to form Codeco Oil Sands Engineer-

ing Inc. (COSEI) in August 2008. His work with Codeco’s clientele has lead to an expanded engineering role into geothermal, tight oil, and shale gas development in both Canada and internationally. In his role as principal engineer, he works on many state-of-the-art drilling and completions well designs in the unconventional resource market today.

Through his work, Hollies has written and collaborated on several SPE papers.

He was president of the Canadian Association of Drilling Engineers (CADE) in 2006, and chaired the CADE/CAODC Drilling Conference in 2007 and 2008. He also headed SPE’s Drilling and Completion Technical subcommittee for the 2010 Canadian Unconventional Resources and International Petroleum Conference, and chaired the first SPE Drilling and Completions workshop on Thermal Well Integrity in October 2011.

Roberto Aguilera Professor, University of Calgary, Canada Roberto Aguilera is professor and

Conoco Phillips-NSERC-AERI chair in the Schulich School of Engineering, Chemical and Petroleum Engineering Department at the University of Calgary, Canada. He is also guest professor at the China University of Petroleum (Eastern China), a principal of Servipetrol Ltd., and a director of Junex in Quebec. He also currently heads the GFREE tight gas research program at the University of Calgary.

Aguilera is a petroleum engineering graduate from the Universidad de America at Bogota, Colombia and holds MS and PhD degrees in petroleum engineering from the Colorado School of Mines. He was an American Association of Petroleum Geologists instructor on the subject of naturally fractured reservoirs from 1984 through 1996. He has lectured, presented his course entitled “Naturally Fractured Reservoirs,” or rendered consulting services in more than 50 countries throughout the world.

He is a distinguished author and past executive editor of the Journal of Cana­

dian Petroleum Technology (JCPT) (1993 and 1999), and an SPE distinguished lecturer on the subject of naturally fractured reservoirs from 2000–2001. Aguilera won the 2011 SPE Canada Regional Distinguished Achievement Award for Petroleum Engineering Faculty, and is both a recipient of the Outstanding Service award (1994) and Distinguished Service Medal (2006) from the Petroleum Society of CIM. About the Society of Petroleum Engineers The Society of Petroleum Engineers (SPE) is a not-for-profit professional association whose members are engaged in energy resources development and production. SPE serves more than 104,000 members in 123 countries worldwide. SPE is a key resource for technical knowledge related to the oil and gas exploration and production industry and provides services through its publications, events, training courses, and online resources at www.spe.org. S

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93

WorkSafe BC and Alberta Occupational Health and Safety watching hot fuelling

H

orizontal drilling and completions technologies have rapidly evolved over the past few years giving the oil and gas industry the ability to access and exploit large and complicated resource plays. With the larger and more complicated operations, comes more difficult and dangerous logistical support. “Hot fuelling on the fly” is one of the most dangerous activities taking place on the large continuous frac jobs today.

Shareholders and managers alike do not want their people working in harm’s way and have a fiduciary responsibility to ensure their workers are safe at all times. Working in the hot zone during a high-pressure frac puts people at risk and, whenever possible, should be avoided. The extreme risk of heat, noise, high pressure, and unpredictable weather conditions combined with a flammable fuel being dragged from machine to machine while operating at full throttle, has caught the attention of WorkSafe BC and Alberta Occupational Health and Safety (OH&S).

Hot fuelling is one of the most dangerous jobs on any site, has caused multiple injuries, and can lead to death.

Both WorkSafe BC and Alberta OH&S have highlighted the responsibility of

the employers to ensure the safety of all workers by introducing legislation that requires the employer to “remedy any workplace conditions that are hazardous to the health or safety of the employer’s workers” (Workers Compensation Act – 115(2.a)). In Alberta, the introduction of Section 279 by the Human Services department of the Alberta Government also confirms the need for additional safety requirements in the “hot zone”.

These guidelines will soon become the gold standard for all companies and in time will become a regulatory compliance issue.

Some operators in Alberta have already set Section 279 as their company policy for refueling. This move by the producers will force the industry to develop products that allow hot fueling to be done in a compliant, engineered system to ensure the safety of workers on site.

One product already on the marketplace was developed by a group of entrepreneurial-minded folks who were not prepared to have their people working in the hot zone. This new technology is being deployed by several service companies throughout B.C. in an effort to maximize safety and increase production.

The Frac Shack™, owned by Frac Shack

International Inc. (FSI), is a sister company of Environmental Refuelling Systems (ERS). Frac Shacks are now in their third year of operation and are designed to meet the demands of the various safety legislations. This modern fuel delivery system provides a solution for workers needing to get fuel directly into equipment operating in the hot zone. Workers are placed in a secure environment with fuel lines tied into the pumper trucks through a plug and play system, removing the need to switch or move fuel lines by hand. FSI has achieved a successful balance between the need to increase the efficiency of a project and keep workers safe, which provides corporate compliance while fuelling, thereby allowing managers to rest assure that their people are safe while working in very difficult conditions.

Watch for more changes as this becomes an area of focus for HSE departments and regulators across North America. The need to ensure human safety on site while maintaining or increasing production will continue to catch the eye of the industry. As pressure mounts for regulators to ensure laws are adhered to and more stringent rules are introduced, industry best practices need to be a step ahead. S

Trucking LTd. Cody Beaven

Industrial, Commercial Installations 2007 Ogilvie Street Prince George, B.C. V2N 1X2 www.lakewoodelectric.ca 94 B.C. Oil & Gas Report • 2012

JOHN D. SHYMANSKI Phone Bus. 250-563-4100 Cell. 250-981-0581 Fax. 250-563-1571 Email. johns@lakewoodelectric.ca

Manager/Dispatch

Ph: 250-774-PICK (7425) Box 1321, Fort NelsoN, BC V0C 1r0

speciaLiZing in picKers & OiLFieLD trUcKing

New regulations, new opportunities Pipeline integrity and risk management the best approach to manage pipelines

R

egulations in the oil and gas industry have become more and more stringent due to safety issues, environmental issues, and public concerns. The CSA Z662 clause Annex N provides requirements for developing, documenting, and implementing a pipeline integrity program. Although Annex N is informative, both the Energy Resources Conservation Board (ERCB) and the British Columbia Oil and Gas Commission (BCOGC) adopted it as a mandatory requirement. This regulatory requirement places an additional burden on many oil and gas companies in Western Canada to develop a pipeline integrity management program.

Many oil and gas companies have no pipeline integrity management program

96 B.C. Oil & Gas Report • 2012

or a limited plan that focuses only on inspection, corrosion, and test programs. However, the new Annex N pipeline integrity program guideline covers every aspect of pipeline operation and maintenance, integrity, and construction. Most companies do not have inhouse expertise to develop a program to meet this requirement.

Visser Consulting Ltd. has developed a Pipeline Integrity Management System (PIMS) to manage pipeline integrity and ensure a safe, environmentally responsible, and reliable service.

Visser Consulting Ltd. has developed a Pipeline Integrity Management System (PIMS) to manage pipeline integrity and ensure a safe, environmentally responsible, and reliable service. With Visser’s PIMS, companies will remain in compliance to these regulations, as it is designed to meet CSA Z662-11 Annex N requirements, and to reflect local codes and standards.

The implementation of the program consists of these phases: • The data and information collection phase, which ensures that all necessary information and data is captured and integrated in the new program.

• A program creation or revising phase, which ensures that the program fully complies with codes and regulations,

Providing Unique Solutions for Regulatory Compliance British columBia oil & gas industry lEading sErvicE suppliEr for: pipElinE intEgrity managmEnt – sElf assEssmEnt program

The assessment must meet the requirements of Section 7 of the Pipeline Regulation. Visser Consulting Service includes building and submission of the BCOGC self assessment protocol as required under Section 7 of the BC regulation.

Visser will then compile this program in conjunction with the PIMS and risk assessment then submit to the client for submission to the OGC.

EmErgEncy rEsponsE planning ● Corporate Emergency Response Planning (ERP) ● Emergency Planning Zone (EPZ) Calculations ● Drilling & Servicing ERP ● Site Specific Production Facility ERP ● Public Consultation & Notification Programs ● Emergency Response Exercises (Full/Table Top)

www.visserconsulting.ca Phone: 403-239-3797

Suite 290, 6815-8th St. N.E. Calgary, AB T2E 7H7

and reflects the best industry practice and technologies.

• BCOGC PIMS self assessment, BCOGC PIMS audit support.

• A program implementation training phase, which helps clients to effectively use the program in their daily operation.

The final delivered PIMS manual describes the overall management responsibilities, processes, procedures, methods, and accountabilities needed to ensure pipeline system integrity. It also provides documentation, guidance, processes, and site-specific information to achieve sound operating practices and regulatory compliance. The structure of the manual is designed to match the Annex N layout, and to provide a user-friendly structure for field operation.

The PIMS manual is set up to align with other services, such as operation and maintenance, standard operating procedures, environment and safety, health, and emergency response.

Part of the Annex N requirement is pipeline risk assessment. The risk for pipelines must be assessed to ensure that pipelines are operating at an acceptable risk level. Upstream pipeline operators often have questions, such as “which is the most effective mitigation option to use with my limited resources?”

One reason is that the pipeline risk assessment method was developed primarily for transmission pipelines. The upstream producers need a cost-effective risk-assessment method, tailored for gathering pipeline systems. Another reason is that the result of the conventional pipeline risk assessment method is not straight forward, and can be hard to understand for upstream operators.

To answer this question, Visser Consulting Ltd. has developed a pipeline risk management method that takes advantage of the established pipeline assessment method developed for transmission pipelines, and is customized for gathering pipeline systems. This 98 B.C. Oil & Gas Report • 2012

method describes risk level by financial terms so that field operators and management can easily understand the benefits and implementation.

This process is straightforward and cost effective for upstream companies, where operators have limited resources to run an in-depth risk assessment. It can be used as a screening tool to identify areas requiring further or more detailed study to support the integrity management program. It can also be used as a cost-effective tool to support pipeline mitigation decision-making. By comparing the cost of an estimated mitigation program, important decisions can be made. This strategy is published and presented in the International Pipeline Conference 2010 (IPC2010-31193).

This pipeline integrity and risk management program is in a leading position in the industry.

“It incorporates the latest technology, which ensures compliance, cost effectiveness, and increases the value of the pipeline system,” says Dr. Hong Lu, P.Eng., the developer of the program. “While others see these regulatory changes as a challenge, we see them as an opportunity for our clients to grow and improve.”

Ben Visser, founder and director of Visser Consulting Ltd. said, “We are proud to offer this pipeline integrity and

risk management service to our clients.

improved the pipeline integrity; public

It is one of the only three CSA-approved

safety and environment, for our clients

risk-management methods in Canada,

by implementing our pipeline integ-

based on its acceptance by the IPC. It

rity and risk management program into

ensures our clients are in compliance in

their operations.”

a cost-effective manner. We have many

For more information, please visit their

clients in Canada, and have significantly

website at www.visserconsulting.ca. S

Land cLearing Trust us to provide for all your land clearing needs including: • Mulching / Slashing • Seismic lines • Road Access • Pipeline ROW • Road and pipeline reclamation • Sub-surface ground conditioning

TrUcKing * Licensed to haul hazardous waste • Floater Water Trucks • General Low Bed Trucking • Drilling rig shale removal • Sawdust Delivery • Environmental Lease Cleanups • Gravel hauling • Lease padding

ForT neLson oFFice 4708 49Th Avenue, Po Box 195 Fort Nelson, BC V0C 1R0 Ph: (250) 774-4862 • Fx: (250)774-4863 office@mmresinc.com SUPPORTING OUR LOCAL COMMUNITY… Mike Acko and Mike Barrette both reside in Fort Nelson with their wives and small children. They make every effort to support the community that they are raising their children in.

Solutions that work for you…quality product…great service…people that care.

WWW.MMRESINC.COM

Focus Corporation

On target

Delivering surveying solutions since 1977.

Trust. Solutions. Success.

10716 - 100th Ave Fort St. John, BC V1J 1Z3 Tel: 250.787.0300 • • • • • • •

LAND SURVEYING ENGINEERING CONSTRUCTION MUNICIPAL TRANSPORTATION AERIAL IMAGING 3D LASER SCANNING

www.focus.ca

B.C. Oil & Gas Report • 2012

99

A Safe and simple solution to a “chilling” problem

N

atural gas wellhead freeze-up can be a significant problem, affecting production and profitability on wells from Canada to Texas.

Over the past several years, the MaxiHeat towable heating system from Allmand Bros. has become the widely re-

garded clean, simple, and cost-effective solution to this problem.

The Maxi-Heat may be easily towed to the wellhead and quickly set up to warm the head and allow the gas to once again flow freely. Every Allmand MaxiHeat towable heater produces a total of

1,100,000 BTUH (at sea level) of clean heated air from its twin enclosed heater units, and its 85-degree Celsius temperature rise ensures that there is plenty of heat, even in the most frigid environments. Up to 33.5 metres of flexible ducting can be attached to each of the

MODULAR CONSTRUCTION workforce housing | kitchen & dining | recreation | offices G R E E N S M A R

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alberta | british columbia | international shelterindustries.com | 800.561.3822 greensmartmanufacturing.com 100 B.C. Oil & Gas Report • 2012

two heater units, allowing the heater to be situated well away from the head.

Of course, not only does the MaxiHeat thaw frozen wellheads, it is often used to keep them open and free from freeze-up in the first place.

cabinet. All of this occurs well before the gas accumulation reaches the Lower Explosive Limit in the atmosphere. The highly-visible strobe also serves to alert personnel in the vicinity that there may be a potentially dangerous situation that must be corrected.

The General Monitors combustible gas monitoring system is optionally available on all new Allmand MaxiHeats and the system is also available to retro-fit into most existing Maxi-Heat trailers as well.

Heating a potentially hazardous environment Providing heat in a natural gas field presents a unique set of challenges. Explosive gas accumulation from a leaking wellhead or other source is always a possibility. Facing this challenge, Allmand has partnered with General Monitors, one of the most trusted names in oilfield and refinery safety, to create a combustible gas detection and shut-down system for the Maxi-Heat. With this system, if potentially dangerous levels of gas are detected in the vicinity of the heater, the General Monitors system shuts down the Maxi-Heat’s engine, generator, and heater units, and operates an explosion-proof strobe warning light on top of the heater

www.allmand.com

Increased fuel capacity Also new to the latest generation Allmand Maxi-Heat is increased fuel capacity. Three separate tanks now hold a total of 250 US gallons of diesel fuel, allowing over 30 continuous hours of unattended operation. A separate 100-gallon tank fuels each of the two heater units, and an additional 50-gallon tank powers its diesel generator set. As an added benefit, the new molded polymer tanks are

|

1-800-562-1373

stronger yet lighter in weight than steel tanks and will not rust or corrode. One advantage to having three individual tanks means that no single tank is over 450 litres (118 US gallons). This brings the trailer under the fuel capacity limits of Transport Canada regulation CGSB 43.146, meaning that no initial or subsequent tank certifications are required, resulting in a substantial cost savings over the life of Maxi-Heat trailers falling under Transport Canada regulations.

Allmand Bros., Inc., established in 1938 and now in its third generation of continuous family ownership and operation, is a top industry leader in portable worksite heating and lighting. Allmand’s Night-Lite PRO, Maxi-Lite, and MaxiHeat continue to make worksites around the world brighter, warmer, safer, and more productive.

Visit www.allmand.com or call 1-800562-1373 to learn more about the Allmand Maxi-Heat and General Monitors safety system. S

Now available with General Monitors combustible gas detection, safety shut-down and visual warning system.

Not only does Maxi-Heat give you more heat on your well head or worksite, now it can give you a safer work environment as well.

THE CURE FOR THE UNCOMMON COLD. Snap this code to learn more about the General Monitors safety system.

B.C. Oil & Gas Report • 2012 101

Safety is a full-time job; don’t make it a part-time practice: K. Leer Enterprises

By Kristen Leer

I

’m 29 years old, and have currently been in business for nine years. Locally owned and operated I have had the pleasure of working in our small community of Fort Nelson, B.C. for all of them. The town that raised me is now the town that looks to my company for effective and safe job sites.

I come from a long line of owner-operators, my great uncle owned a mobile home transportation business for twenty-odd years, my grandfather owned a gravel hauling business for 18odd years, and my father currently owns a trucking business, involving end dumps, belly dumps, winch tractors, and water trucks that is based out of Fort Nelson as well.

Family-orientated businesses such as ours are a great example for quality and leadership. We take pride in our work, our personality shows through our business relationships, as we have a hand on every move anyone in the company makes.

K. Leer Enterprises has run on a seasonal job basis, as do most northern companies. Our winter season has been very busy with the winter access roads being put in and we were able to provide some traffic control, as well as pilot car services for equipment

Professional, Reliable, Mobile First Aid Services.

Committed to making your worksite safe and injury free. + Drug and alcohol collection site + Onsite first aid for your worksite + Remote camp experience-including fly-in only camps + COR certified + Locally owned and operated + Retail medical supplies

Paramedics: PCP-IV ••• EMR’s ••• Advanced Level 3 First Aid Attendants

www.kendrafirstaid.com

102 B.C. Oil & Gas Report • 2012

150 Mile House, BC Business 250-296-0094 Mobile 250-392-0053 Fax 250-296-0193 Email info@kendrafirstaid.com Owner Kendra Syme-Paramedic

to Imperial Oil. A connector road is being made permanent instead of seasonal winter access, and our traffic control division spent almost three months ensuring safety for the public and workers on this project. Debbie Sheldrick, one of our valued TCP’s became Pro-Active pro of the week, recognized by Imperial Oil for her safety on the job site.

“Debbie has done an exceptional job in her role as a flag person on the Poco Komie road – looking out for all workers.

Especially during a recent rig move when the road activity increased.”

She received her award on March 3 and was thanked for helping achieve a zero-injury workforce.

Providing pilot car services to the many rig-moving divisions in B.C. and Alberta is something I have been committed to for the last six years. Our clients include Mullen Oil Field Services, Flint Oil Field Hauling, D&D Well Servicing, KOS Oilfield Hauling, and GTS Oilfield Hauling. These companies in particular are partial to our dispatch and Sheldrick’s organizational skills.

A recent dispatch hire at K. Leer Enterprises is Trudy Krysta.

Krysta has had a great deal of experience working in the oil patch for 14 years and she is a gold star and a huge asset to our company. Her positive attitude and drive for success has been very beneficial to both the company and our employees.

Our local trucking companies Hyacinthe Trucking, Eh-Cho Dene, and M&M Resources enjoy using our pilot cars as well.

K. Leer Enterprises has had many contracts from Alberta to B.C. in the past. Our traffic control division has been working on highway maintenance of the Sierra Yoyo Desan Road for the past three years, subcontracted through the Ledcor group. This summer we will be continuing with this contract and working on the replacement of culverts, deep base repairs, and completion of the 2011/2012 upgrades.

Ensuring professionalism is one of the major strong points of K. Leer Enterprises. Being involved in the community has been one of our many jobs that we do not take lightly. Having this particular contract has enabled us to practice safety in everything we do. Supplying traffic control on recovery/ accident scene investigations can be a tough job in small communities such as ours. In small communities you know everyone, and you have met them at one point or another. Remaining calm and professional on the job site is one of the many directions I train my employees in. Our office is on the highway; we drive on it and work on it as well. The B.C. terrain and its windy roads can be very unforgiving at most times. Please remember, the best gift you can give your family is you, so please be safe. S

Celebrating 20 years in service Radar Road Transport

R

adar Road Transport began in Fort Nelson in 1992, with one truck and one driver Rick Seidel, who had been working in the industry for 12 years by this time.

Construction / Maintenance Division Whether you need a road built or maintained, they can provide you with the following equipment with qualified, knowl-

The company continues to offer reliable, quality service with

edgeable employees.

competitive pricing meeting the needs of industry and provid-

• Graders – 14H, and six wheel-drive graders

ing service to their customers. Today, Radar Road Transport has more than 34 pieces of equipment and 28 local employees, offering service in the transportation industry, as well as the construction and maintenance sector.

Last fall, Radar purchased a larger shop and can now be found at their new location located at 4704-48th Avenue in Fort Nelson, just look for their sign.

The company prides itself on being a knowledgeable, motivated team with skilled personnel, from the field through to management. Rick and Carol continually acknowledge that they have a great team with extensive knowledge in the industry.

• Cats – 700, 650, 450 • Loader backhoes • Packers-smooth drum and sheep foot • Excavators – 200 & 270 • Tow tractors • Water trucks • Winch tractors • Loader – 950 • Skidsteer • Snowmobiles • ATV’s • Labourers

Trucking Division

Being proud supporters of the community, and serving in-

Coordinating the safe reliable transportation of your needs,

dustry for 20 years, one call does it all!

with the diversified fleet of trailers, they can take care of your

Check out their website: www.radarroadtransport.com or

transportation needs whether it is a heavy haul or a gravel haul.

visit them in person at:

• Heavy Haul Lowbeds (60-tonne hydraulic neck) 6,7,8,9 axel

Box 483 Fort Nelson, B.C., V0C 1R0

configuration • Winch tractors, scissornecks, belly dumps, end dumps, highboys, step decks

Fax: 250-774-3899 Phone: 250-774-4203 radarrd@northwestel.net S B.C. Oil & Gas Report • 2012 103

Collapsible frac tanks better for the environment and cheaper to transport

W

ith increased interest from the public around the role of fracturing, a new product is making that task a little easier on the environment.

Since most frac jobs require millions of gallons of water that is typically delivered by trucks making hundreds of trips, the carbon footprint and cost of transportation can be prohibitive.

In addition, large, heavy, expensive steel storage tanks are often used which, in turn, can damage the ground they sit on and be as costly to remove as they were to purchase. Steel tanks can also have a long wait time – from purchase to delivery – depending on the inventory available which can hold up wellsite exploration and development.

Collapsible tank advantages Collapsible tanks ensure complete isolation from surface soil and water and significantly reduce truck traffic to and from the site (and its related carbon footprint). In fact, one semi-truck can transport 24 tanks with a combined storage capacity of an astounding 1,200,000 USG (28,800 BBLs (US) or 4560 m3). It would take 57 trucks to transport the same storage capacity in 500 BBL steel tanks.

SEI Industries Ltd.’s Frac Tank is a collapsible pillow-style tank designed specifically for oil and gas exploration and development. The Frac Tank is easy to set up and can be used immediately with almost no site preparation required. The tanks are lightweight, fully collapsible, environmentally friendly and don’t damage the ground beneath them.

Punishing conditions and frequent relocations One individual Frac Tank can store 50,000 USG (1200 BBLs (US) or 190 m3). In a day, using a manifold system, multiple tanks can be set-up to provide whatever volume of storage is required. Even better, the Frac Tank can be acquired in half the time it takes to get a steel tank.

It all sounds great but can it stand up to frequent moves and harsh field conditions? Fortunately, the answer is yes. SEI’s Frac Tanks are constructed from a proprietary industrial fabric that is high strength and high abrasion and chemical resistant. Coloured in high-visibility safety orange, it’s ideal for use in winter temperatures as low as -50 degrees Celsius where it can be folded and unfolded in extreme cold. The Frac Tank can also be used constantly with heated fluids up to 72 degrees Celsius (with limited exposure to 82 degree Celsius liquids). In addition, the tank’s low-profile design helps to maintain its fluid temperatures better compared to vertical steel tanks.

Another feature of this unique fabric is its high resistance to abrasion — an important aspect when tanks are continually moved from site to site. Common tank fabrics have abrasion resistance of 6,000 to 13,000 cycles, while SEI’s Frac Tank fabric has a 73,000 cycle abrasion resistance to handle the wear and tear of continual movements.

Recently, SEI also launched its optional Frac Tank Deployment System (FTDS) which allows the quick unroll and roll-up of tanks while also significantly reducing the staff required. S

Nortech BusiNess solutioNs is an it services and consulting company located in Fort st John, Bc, with a field office in Fort Nelson, Bc. Nortech has been providing it services since 1992, and has demonstrated a longevity and commitment to the communities we serve. Nortech is in a position to offer technical services throughout Northern Bc.

Fort st John office 10704 97th Ave suite 115 V1J 6l7 Phone: (250) 785-0383 Fax: (250) 785-0385 email: support@Nortech.ca Authorized telus hardline Dealer

104 B.C. Oil & Gas Report • 2012

A+ certified service and warranty centre 24/7 Network Management lAN Design and implementation consultation communications technicians – satellite, cellular, Fiber, and more.

Network cabling - installation and Design structured uPs, tVss systems technical support services – Depot and Mobile ... and much more.

Focussing on client satisfaction, polished delivery of services, and creating solutions that enable our clients to focus on their business makes Nortech Business solutions the it partner that your company needs.

e l p m i S e d a eM g a r o t S r e t a W One tank stores 1200 barrels!

Specifically designed for the petroleum industry, SEIâ&#x20AC;&#x2122;s new FRAC tank stores large volumes of water for use in hydraulic fracturing.

The FRAC tank is easy to transport and set-up, can be used almost immediately and offers savings up to 96% off transportation costs (24 tanks can be transported on one semi-truck).

Constructed to endure, FRAC tanks are made from specially developed heavy-duty industrial fabric that features a thicker and denser coating that stands up to frequent relocations and punishing outdoor conditions.

Better for the environment; Frac tanks ensure complete isolation from surface soil and water, significantly reduce truck traffic to and from the site and increase site safety.

Convenient; collapsible, easy to relocate.

lightweight,

Rapidly deployable; our deployment system unrolls tanks quickly.

Lower transportation costs; 24 tanks can be transported on one semi-truck.

Quick set-up; 760 cubic meters (200,000 USG) of storage can be set-up in two hours.

Customizable; available in standard capacities of 50,000 USG (190 m3) or custom capacities.

SEI INDUSTRIES LTD. Tel: 1.604.946.3131 E-mail: sales@sei-ind.com WWW.SEI-IND.COM

Coil goes live

A

s the oil and gas industry continues to gravitate towards horizontal wells with complex multistage completions, new and more efficient methods of logging and com-

pleting wells must be found. Enter E-coil as the best solution for any of your E-Line logging needs on horizontal or deviated wells.

Successful oil and gas production begins by acquiring crucial wellbore data and taking this data to adhere to every wellbore’s specific need, ensuring optimal oil and gas production while minimizing cost and liabilities. Downhole data is collected by

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.

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.

Toll Free: 1.800.225.8247 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 106 B.C. Oil & Gas Report • 2012

| | | | | |

250.563.3641 250.392.3112 250.635.1277 250.624.4301 250.782.8280 250.262.0047

using a variety of logging sensors which are deployed into the wellbore. Successfully deploying these tools is no longer an issue with the advancements of E-coil.

E-coil (or electric coil tubing) involves taking electric wireline and installing it into coil tubing for deployment, creating a quick and cost-effective way to complete horizontal wells. With the real-time logging capabilities, decision time is minimized.

Logging capabilities include: • CBL (cement bond log) • CHAT (cased hole analysis tool) • PFT (pressure – flow – temperature) • CNL (compensated neutron log) • GR-CCL (gamma key – collar locator) E-coil also allows for perforating and bridge-plug services including perforating multiple zones, plugging and perforating in a single run and setting tool services such as bridge plugs and WR plugs. Up to seven intervals can be perforated on a single run at virtually any depth. The inherent safety advantages of E-Line make E-coil perforating a much safer and cheaper alternative to tubing conveyed perforating. The advancement of multiservice head designs allows for circulating and other flowthrough capabilities as per the specific needs of each job.

Coil tubing has become a valuable medium for successfully deploying logging and perforating tools, as well as doing cleanouts, drillouts, milling, scraper runs, fracturing, and port shifting and retrieval.

Besides experience and expertise, Sidewinder Coil Services brings state-of-the-art coil tubing units with 80,000 pounds push/pull injectors and 3,800-metre measured depth capability on two-inch coil tubing, as well as nitrogen pumping services and fluid pumping services making the business of producing oil and gas less complex, less expensive, and more informed and productive.

For more information, please contact Stig Gjerlaug, Sidewinder Coil Services Inc., 306-891-6668 Email: stig@sidewindercoil.com Website: www.sidewindercoil.com S

Beds for a booming business Peace Energy Lodge Front entrance

D

awson Creek’s oil and gas industries are booming causing housing demands to rise. With vacancy rates down and housing unable to keep up, Peace Energy Lodge has stepped forward to fill this need.

Opening summer of 2012, Peace Energy Lodge will be a 25-room hotel-style facility. It is placed on the quiet outskirts of Pouce Coupe, British Columbia, 10 minutes southeast of Dawson Creek.

With two-and-a-half acres of grass, gardens, and lit paths, Peace Energy Lodge gives you the space to enjoy the beauty of the Peace Region.

The inspiration behind this facility was to provide the tenants comfort while they are away from home. Instead of living with thousands of people, we are focusing on only 25 rooms, thus giving a

Peace Energy Lodge Opening summer of 2012, Peace Energy Lodge will be a 25 room, hotel style facility. On the quiet outskirts of Pouce Coupe, our facility is placed on 2.5 acres of manicured grounds. While you are away from home we offer you a comfortable and personal atmosphere. You are welcome to use the nautural gas barbeque and covered outdoor eating area. Take a walk on the paths rolling through beautiful gardens. For your winter needs we have provided power to our parking stalls. If you want a little more comfort, ask about our luxury suites!

Serving trheeek Dawson C Area A look inside the lodge...

• 1600 square foot great room • Rock finished gas fireplace • Big screen TVs • Wireless internet • leather couches & chairs • Large eating area with 24 foot vaulted ceiling • Coffee, pop & snack machines • Board room • Basement lockers • Safety training room • Workout room

your HoMe away from home Peace energy Lodge Inc. Box 341, Pouce Coupe, BC V0C 2C0 Phone 1-250-784-8163 peaceenergylodge@gmail.com

108 B.C. Oil & Gas Report • 2012

Peace Energy Lodge is located in Pouce Coupe, ten minutes southeast from Dawson Creek on Highway 2. Turn east on 51st avenue. Then turn south on 53rd street to Peace Energy Lodge

With two-and-a-half acres of grass, gardens, and lit paths, Peace Energy Lodge gives you the space to enjoy the beauty of the Peace Region. personal atmosphere. Walking through the doors of the lodge you are welcomed by a rock-faced fireplace, vaulted ceilings, large windows, and big screen TV’s.

Typical rooms in the lodge have a full bathroom, bed, and lounge area with 36-inch televisions, and wireless and wired Internet. The rooms either have a beautiful view of the rolling hills, or a view of the gardens and grounds. The VIP suites available for those who wish to have extra comfort, give the tenants 350 square feet, a mini fridge, microwave, and 43-inch television.

The Great Room is exactly that, a 1,600-square-foot recreation room.

With the fireplace on, the big screen tuned into sports, and leather couches inviting you to relax, you can’t feel more at home. A meal nook with stove and microwave is also in the Great Room.

You will find pop and snack machines situated in both wings of the lodge.

With a safety training room and a boardroom, clients with multiple tenants would have a place to conduct any necessary meetings. Coin laundry machines are also available for use at any time. A full workout room in the basement, equipped with cardio machines, lockers, and showers can be used at your leisure. Outdoor extras include a barbeque with a covered outdoor eating area, a deck facing a beautiful forest, and power to all parking stalls.

We are currently exploring many leasing options, including but not limited to, long-term and multi-room agreements. Upon a full lease contract, there is 10,000 square feet that could be built to suit a facility, kitchen, dining room, and hall.

For more information please visit our website (www.peaceenergylodge.com) or call Jason Knutson (owner) at 1 (250) 784-8163, or by email at peaceenergylodge@gmail.com. S

JPSI—Your Stadium Lighting Source in the North!

We are pleased to introduce our 70 foot stadium light towers to Northeastern BC and Alberta! With 16x 1500 Watt Halide Lights providing total illumination for several acres, we are the closest thing to the sun!

JPSI towers are a non-shadowing light source with the ability to reduce eye fatigue, strain and drastically improve overall visibility on a large scale. Replacing several standard towers with one stadium unit can improve safety; reduce hazards, save fuel and lower lighting costs on your worksite. All of our towers provide a source of auxiliary power for use with additional equipment, or to power well site shacks. We offer individual rentals or packages.

JPSI is a full service rental company, providing transport, setup/tear down and maintenance for all of our equipment. We are sourcing specialists, so if we don’t have what you need, we will find it and bring it to you! Call us today to discuss your needs and what we can offer you!

24-Hour: 250-794-6580

www.jpsi.ca

27 inch television with on demand movies. King or queen size opulence beds. Coffee/tea maker, mini fridge, microwave, hair dryer, private voice mail. Unlimited free local calls and long-distance access. Free high speed internet connections, work desk, clock radio, iron & board.

And it doesn’t end there: we also have the following in house features to make your stay even better! Indoor heated pool with waterslide and hot tub, complimentary super start hot breakfast, free parking, 24 hr front desk. 24 hr fitness center with treadmill, bike and free weights. Guest laundry facilities.

877-711-7666

www.super8fortnelson.com

Ask us for detAils

B.C. Oil & Gas Report • 2012 109

Smokey trucks series – size does matter

S

afety Boss Inc. is a full-service safety services company based in Calgary, Alberta, Canada. They have seen rapid expansion over the last few years opening offices throughout Alberta and British Columbia, including centres in Medicine Hat, Red Deer, Drayton Valley, Fort Saskatchewan, Whitecourt, Grande Prairie, Fort St. John, and Fort Nelson.

The company and its owner Mike Miller became most famous by becoming the number one firefighting company in Kuwait after the 1991 Gulf War. Safety Boss Inc. set the rapid pace that had to be matched by other companies in Kuwait, and as a result, the fires were out within nine months, instead of the many years that was initially given as the earliest possible date to put out the fires. The last fire to be put out was set up

by Safety Boss Inc. to be doused by the push of a button by the Emir of Kuwait; the technology that allowed Safety Boss Inc. to take the lead was the Smokey fire truck.

The Smokey Truck The oil-well control technology created by Safety Boss Inc. of Calgary is the

110 B.C. Oil & Gas Report • 2012

result of a world-renowned innovation that is deeply engrained in Alberta’s oil patch.

Founded in Calgary in 1956, the company gained international acclaim during the 1991 Gulf War when, during Iraq’s retreat from Kuwait, they blew up 950 oil wells, of which 732 turned into raging infernos. Of the 600 oil wells capped, 180 were by Safety Boss. Despite being a small company compared to its American counterparts, this was the highest number of wells capped by any company operating in the Gulf region.

As Mike Miller, CEO, said to his employees at the time, it was the “Stanley Cup” of oil-well firefighting.

One important factor in their success was the Smokey fire truck. The Smokey truck was developed after the company found their existing trucks were inadequate during a blowout years before at Lodgepole, around 110 kilometres southwest of Edmonton. The sour-gas blowout burned 400 acres of forest and wasn’t capped for over two months. Development on the new Smokey series started in 1983.

The new Smokey series featured a number of advantages. They were the

first oilfield trucks capable of shooting sustained, high-capacity streams of water or foam. A new multi-tank suction manifold system, high volume discharge hose layouts, and water cannons were much more efficient than systems other companies were using. The superiority of the Smokey truck was reflected in its cost—$500,000, more than triple what other trucks cost.

Safety Boss can fully deploy its system within an hour of arriving at a fire. Other companies, often using explosives to put out fires, could take up to a day to set up.

Endurance was another important factor. For this, Safety Boss relied on equipment supplied by trusted truck and pump companies. The equipment proved incredibly reliable. In Kuwait, three Smokey units pumped out 40 million gallons of water without breaking down.

While Safety Boss has designed the systems on the Smokey units, they have been built by Superior Emergency Vehicles, located in Red Deer. The two companies have collaborated to make the best possible vehicles for this kind of work, and have recently come out with the Smokey XI and XII models. S

Working together to protect our environment Wide Sky Disposal 1989 Ltd.

W

ide Sky Disposal has been operating in Fort Nelson, B.C. since 1989 and is totally locally owned and operated. With a wide variety of services, we have become a household name in the area and each day we are striving to keep up with the residential, commercial, and industrial communities, as well as the oil patch for all of their waste disposal and recycling needs.

Recently Wide Sky Disposal has teamed up with Liz Biggar of the Northern Environmental Action Team (NEAT) and Ed Currie of Encana to assist in Encana’s recycling efforts. We are actively donating recycling containers, as well as transporting and handling all of the recyclable tin cans from three of Encana’s main camps. Once the tin has reached our steelyard it is then baled, loaded, and shipped to Richmond Steel recycling in Fort St. John, B.C. This program is still in its early stages but we look forward to reducing the amount of recyclable materials that reach the Northern Rockies Regional Municipality landfill each day.

Wide Sky Disposal also employs a clean-up team. When required, this team is ready for any job big or small. Specializing in site clean-up, this team can assist you with any demolition project and transport needs, this includes waste separation on site, as well as any and all equipment required for the job. In 2009, Wide Sky Disposal’s team took part in the demolition and transformation of North America’s largest chopstick factory into what is now the new home for Schlumberger Canada Limited Fort Nelson. Our available equipment includes various sizes of overhead lift dumpsters for those smaller jobs, as well as multiple sizes of roll-off style containers for those larger jobs. Our heavy equipment ranges in sizes from a mini hoe to a 345 button top including bobcats to a 966G loader. New to our equipment list is the Aljon 500 metal baler.

At our local depot we accept a wide variety of recyclable materials, among those would be used beverage containers that customers can bring in for a deposit. These beverage containers are stored and then transported through our Encorp Pacific (Canada) stewardship program. Another program Wide Sky Disposal partakes in is the Product Care stewardship program.

This program allows us to store, handle, and ship used paints, stains varnishes, and aerosol containers. Our hazardous waste license allows us to handle, store, and transport certain special wastes. To list a few, used lead acid batteries, used waste oil and rags, as well as antifreeze. These hazardous wastes are transported by and to Green For Life (GFL) out of Prince George,

112 B.C. Oil & Gas Report • 2012

B.C. and the used lead acid batteries are shipped by Wide Sky Disposal to K.C. Recycling in Trail, B.C. Wide Sky Disposal also operates the local landfill and transfer station for the Northern Rockies Regional Municipality (NRRM).

Our manager is a SWANA-certified manager of landfill operations and several of our employees are SWANA-certified landfill operators. We have a compactor on site and this landfill is constantly being maintained to NRRM and Ministry of Environment regulations. Wide Sky Disposal strives to maintain a high set of standards and every precaution is taken to ensure the proper disposal and handling of all waste products. S

We strive to maintain a high set of standards and every precaution is taken to ensure the safe and proper handling of all waste products.

Toll Free

1-877-WIDESKY P.O. Box 1570 Fort Nelson, BC V0C 1R0 Phone 250.774.6528 or Fax 250.774.4750 Email widesky@northwestel.net

A good fit Peregrine Pressure Testing Ltd.

P

eregrine Pressure Testing Ltd. was incorporated in August 2006, and currently operates a fleet of 10 2007 and newer units. Two units rated 42,000 KPA, six units 70,000 KPA, and two units 105,000 KPA. All units are equipped with our computerized digital charting and recording system, and have a backup charting system.

Peregrine does all kinds of pressure testing, from blow-out prevention systems to plant and facility testing, formation leak off tests, pressure integrity testing, pipeline testing, hydrology testing, and microfracs.

We introduced our first high-rate 105,000 KPA unit last year and planned to have our new high-pressure, high-volume unit in the field in early June 2012. With the ongoing volume of work and the pressures and rates required for work in the Montney, Horn River, and the Liard shale gas plays this unit will be a good fit for our customers. This unit will be capable of 275 to 300 litres per minute at 69,000 KPA, and by changing the fluid end out will be capable of 175 to 200 litres per minute at 105,000 KPA. We will also have our computerized digital charting and recording system on this unit. Other features will be a 12 m3, three compartment stainless steel tanks, bowie pump for loading and unloading, and a 4X3 mission pump for line filling or fluid transfer at 1.5 to two M3 per minute. This unit will also be equipped with 1.5-inch figure 1502 iron and fittings, plus 100 feet of one-inch high-pressure hose with a burst pressure of 225,000 Kpa. All pump controls, high pressure, mission, bowie pump, and valves are operated from an operators cab that is heated, has 110-volt power, good lighting, and a large window for good visibility of pumping equipment and well head or tie in point.

114 B.C. Oil & Gas Report • 2012

We currently have trucks based in Fort St. John and Fort Nelson, B.C. and service northwestern Alberta.

All units carry a full line of test subs, crossovers and cup testers. Each unit also has our computerized digital charting and recording system capable of recording pressure, date and time, volume pumped and pumping rate and is able to record and store all data in one-second intervals. Also, each unit can export and email all data in excel format. So the data can be displayed in chart form and by simply clicking on the chart you have the time, pressure, and volume down to the second and exact Kpa. Each unit is also equipped with standard gauges, digital deadweight, flow metre and Barton chart recorder as a backup.

All data is stored for four to six months after jobs are done and can be recalled if the customer needs any information on any of the testing done at a specific site. All charting can be broken down and printed out from one test per page to a chart for the complete job from start to finish.

Peregrine is COR-certified, registered with ISNetworld and Complyworks. We are also B.C. and Alberta registered with Worker Compensation Boards and carry full liability insurance.

Our operators go through an intensive training and mentoring program so that we can have the most capable people doing the work in the field.

At Peregrine, safety is our number one priority and our motto is “Under Pressure, Under Control”.

We have an assortment of specialty flanges and subs to meet most of your needs and have the capability to have parts built in a very timely manner if required.

If you require any information feel free to contact us anytime at 250-787-8662 or by email at pptbob@telus.net. S

Setting the standard T3 Energy Services

W

hen it comes to safely providing well control performance services, T3 Energy Services sets the oil and gas industry standard for value, quality, and overall customer satisfaction, and has been doing so for over 30 years.

T3 Energy Services designs, manufactures, repairs, and services high and low pressure wellhead products, frac trees, manifolds, blowout preventers (BOP’s), production manifolds, engineered gate valves, accumulator systems, and test units. These products are all used in the drilling and completion of new oil and gas wells, the work over of existing wells, and the production and transportation of oil and gas.

With Canadian locations in Fort Nelson, B.C. and Nisku, Alberta, as well as strategically located manufacturing facilities throughout the rest of North America, Mexico, the Middle East, and India, T3 Energy Services is able to provide our customers with rapid response times for product and service needs. In addition, we are committed to meeting our customers’ growing needs by consistently developing and expanding the list of products and services we offer to the energy industry.

base with seasoned veterans that have over 50 years of cumulative oilfield experience.

Stronger than ever While T3 Energy Services has enjoyed great success over the years, the fusion of T3 Energy into Robbins and Myers Inc. has provided an even-stronger foundation than ever before.

T3 Energy Services combined with R&M Energy Systems has provided Robbins and Myers with a powerhouse combination of technology and service that continues to gain strength and success every day. Both companies have a rich history of innovation and dedication to providing total system solutions for the oil and gas industries. They continuously improve business structure to reduce complexity and cost and to become a more market-driven enterprise that provides effective, knowledge-based solutions.

With such a fortified combination of determination and capability, there is no end to where this company can go and how it can get there. S

Canadian operations Located in the small town of Fort Nelson, T3 Energy’s wellhead and production systems offer service capabilities for all of northern and central B.C., as well as parts of central Alberta. In an area where field service is a primary focus, T3 Energy extends their support structure by providing a repair, assembly, and testing facility, as well as storage capabilities.

The Fort Nelson team has had a strong influence in the Horn River shale gas plays by helping some of the oilfield giants with their wellheads, frac trees, and manifold systems. The team at T3 Energy Services is an innovative and forward-thinking group of individuals that is comprised of seasoned veterans considered to be the top of their respective fields, as well as fresh new creative talent. This meshing of ability brings clear and innovative solutions to an ever-changing and demanding industry and allows T3 Energy Services to offer services and products for both conventional and unique requirements.

T3 Energy Services also offers blowout preventer (BOP), accumulator manufacturing and service, as well as a multi-dimensional line of elastomers suited to many different oilfield needs.

The T3 line of BOP’s and accumulators are known around the world as being at the top of the industry for quality and dependability.

The Pressure Control Group is located in Nisku, Alberta, and has full manufacturing, repair, and service capabilities, as well as a large selection of inventory items pertaining to their respective industry. The Nisku group has an incredibly strong employee B.C. Oil & Gas Report • 2012 115

Providing top-tier service to the region J E Sellors Services Ltd.

J

E Sellors Services Ltd. is a road and lease construction services provider based in Fort Nelson, B.C. Services

tractor work, as well as highway con-

Services Ltd. has been operating in the

struction and civil work.

Fort Nelson area for over 16 years; with

Locally owned and managed, J E Sel-

office and shop facilities in the area,

include earthmoving, site preparation,

lors Services Ltd. is focused on providing

we are well situated to serve the Horn

winter access and lease construction,

top-tier personnel and equipment for

River gas play, as well as more northerly

land clearing, lowbed, gravel and winch

all of our customers’ projects. J E Sellors

civil works. Rapid mobilization of men and equipment, as well as a late model equipment fleet allow us to meet and exceed our customers’ schedules and project needs.

J E Sellors Services Ltd. can provide camp services to facilitate any projects we are involved in.

Holding COR certificates with Enform and Northern Safety Network for our different areas and customers, as well as belonging to Information Safety Networld and Complyworks; J E Sellors Services Ltd. maintains the high safety standards that protect our workers and customers in all facets of our operations.

Call and schedule your next lease / high grade / clearing / stripping / ditching / excavation or hauling job now at (250) 774-2345. S

116 B.C. Oil & Gas Report • 2012

J E SEllorS SErvicES ltd

250 774 2345 office • 250 775 1233 cell • 250 774 2306 fax jesellorsservices@theedge.ca

www.jesellorsservices.com

MPI’s Top Fill Tank Adaptor – Changing landscapes of the chemical tank industry

M

armit Plastics Inc. recently launched its newest patent-pending technology – the Top Fill Tank Adaptor. True to its name, the Top Fill is designed as an

innovative answer to safe tank filling – allowing chemical tanks to be filled from the ground level.

In 2008, Marmit Plastics was approached with a problem; the current filling process for chemical tanks presented a safety hazard – workers climbing ladders in order to insert a hose and fill from the top. Even with the dangers of ladders in winter conditions set aside; splashing, fumes, and static all played a part in creating an unsafe work environment for those filling their chemical tanks from the top. When product research turned up unsatisfactory results, Marmit began creating its own product for ground-level filling. Several tests and two years of design/

Field top fill.

development process later, the end result became today’s Top Fill Tank Adaptor technology – a design that has revolutionized the task of delivering chemical products into plastic and steel tanks.

The Top Fill Tank adaptor’s design includes an inlet and vent all-in-one fitting, drop tube (stinger), load line, and valve. The design allows tanks to be filled to the same level consistently from the ground – eliminating ladders and other commonly practiced, unsafe techniques from the filling process. The new design also features technology that eliminates splash filling, reduces the danger of static discharge in both plastic and steel tanks, and allows the fill line to be emptied by simply reversing the discharge pump. Since product launch, Marmit has retrofitted both plastic and steel tanks throughout Western Canada, and is creating a new standard for safety within the oil and gas industry.

Top fill close up.

Since 1990, Marmit Plastics Inc. has grown from a family business into an industry leader in innovation and unbeatable service. Based in Grande Prairie, Alberta, Marmit Plastics manufactures single and double wall plastic chemical tanks, secondary containment basins, water tanks, and other oilfield-related plastics products, as well as specializing in polyurethane spray foam insulation and plastic welding. With a commitment to providing customers with the best service and most reliable product, Marmit has made a name for themselves as an innovative industry leader within the oil and gas rotational molding and plastics markets.

For more information on the Top Fill Tank Adaptor or Marmit’s other products, they can be contacted toll-free at 888.868.2658. For more details, visit them online at www.marmitplastics.com. S 118 B.C. Oil & Gas Report • 2012

Top fill.

I P M

PO Box 366 Station Main Highway 43 West, Grande Prairie AB, T8V 3A5 info@marmitplastics.com • www.marmitplastics.com Local 780.532.0366 • Toll Free 888.868.2658

C.

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Volunteers are key to CAPLA’s success

By T. Cathy Miller, CEO

A

t the Canadian Association of Petroleum Land Administration (CAPLA), we know that our success and achievements are defined by our amazing CAPLA volunteers who are always ready and willing to provide their expertise and knowledge to help our industry and their fellow members.

CAPLA volunteers represent us in the oil and gas industry, and they carry CAPLA’s message and reputation farther than any marketing efforts ever will.

CAPLA recently launched a number of new initiatives and we bolstered some existing committees by adding new volunteers – with the net result that CAPLA’s volunteer ranks more than doubled in the past year!

Our new projects include: the Knowledge Bank Refresher committee, which is

building an online resource of individuals who will provide information and support in their specific area of knowledge; an IT and Systems Education Development sub-committee that will identify knowledge gaps and then find or develop resources required to provide that deliverable to our membership; and the social media team, which is ensuring that CAPLA has a strong online and social media presence in today’s world.

Plans are underway right now to also launch a new Mentorship Program pilot project this year. This will be an opportunity for senior land personnel who have a depth of knowledge and experience to inspire and coach the future leaders of our industry.

And we are working on introducing a Toastmasters program that will help our

members to sharpen their communication and leadership skills in a supportive setting. Joining the CAPLA Toastmasters Club will help our members to build their confidence while they learn to present their ideas more effectively.

We know that without our volunteers, CAPLA would not exist. We extend a big thank you to all of our volunteers who provide their talent, ideas, skill, experience, energy, and commitment.

We value every contribution of time and knowledge that we so generously receive from CAPLA volunteers, and we would also like to take this opportunity to thank the companies who support their employees’ volunteer involvement.

CAPLA volunteers are the best! S

CAPLA: a great resource for people who work in the oil and gas industry CAPLA was incorporated in November 1993. CAPLA serves individuals and organizations involved in petroleum land asset management. The majority of our 2,700 members are comprised of mineral and surface administrators, contract analysts, supervisors, landmen, team leads, and land managers.

CAPLA provides an environment that allows our members to meet the challenges ahead. Our main goals are to bring together the different personnel involved in the land asset management function, establish standards of excellence, open lines of communication and gain recognition for the land asset management discipline within the petroleum industry.

through our website and organization such as: • Educational programs and learning tools • Networking opportunities such as events and seminars • Professional development opportunities • Certification of professional standards • The CAPLA employment marketplace; current job postings • Corporate discounts • NEXUS, CAPLA’s quarterly magazine • E-bulletins • Roster of 2,700 members Active CAPLA membership is $175 annually. This membership is for a member active in the land asset management

Benefits of becoming a CAPLA member When you become a member of CAPLA, you will be able to benefit from the many resources that are available to you

120 B.C. Oil & Gas Report • 2012

field as an employee, independent contractor, or anyone with an enthusiastic interest in petroleum land administration and management.

The oil and gas industry in North America: technology â&#x20AC;&#x201C; driven consequences

S

ince the turn of the century, the oil and gas industry has seen rapid advancement in technology that has resulted in dramatic changes in natural gas and oil supply within

the North American market. These changes, built upon a foundation of horizontal drilling and multi-stage hydraulic fracture stimulation have resulted in a significant growth in natural gas production, both in Canada and the United States.

The addition of nearly 11 Bcf/d of production into a relative-

the Cardium and Viking formations in Alberta and Saskatchewan, as well as the continued expansion of the Bakken and Shaunovan play in Southern Saskatchewan continued to grow.

In Alberta alone, light oil production has grown by more than 175,000 Bbls/day in the past three years. In the United States, similar production trends have occurred (Figure 2). Similar type production curves exist for natural gas liquids such as propane and butane and ethane.

ly flat market has led to a reduction in natural gas spot prices from a peak of over $12/mcf (Henry Hub spot prices) in 2008 to lows of less than $2/mcf in early 2012, (Figure 1).

Figure 2: Increased tight oil production in United States (from EIA)

Figure 1: Spot prices for natural gas from Henry Hub (from Government of Nebraska website)

This application of the law of supply and demand has led to a shift in industry focus and activity. As a result of a prolonged price collapse for natural gas, E & P companies have shifted their focus towards higher-priced commodities such as light tight oil and liquids-rich natural gas products. Demand for these products is high and pricing is still benchmarked against world oil prices. There still is at present a discount for West Texas Intermediate pricing for North America crude versus Brent Intermediate on the spot market.

This shift is not without its own risks. Since 2009, many companies have shifted their focus to tight oil prospects in Western North America, primarily the Eagleford and Permian basins in Texas, continued expansion of the Bakken play in North Dakota and eastern Montana, and the Niobrara Basin in Colorado and Wyoming. In Canada, the tight oil prospects of

The challenge facing the oil and gas industry is not with increasing supply but rather with managing growth within a market-constrained North American economy. The increased supplies of tight oil and select natural gas liquids may create a situation where over-supply relative to demand will place downward pressure on spots prices for not only natural gas but oil and natural gas liquids as well. Companies now are faced with volatility in most of the hydrocarbon products stretching from oil to gas. The result is a developing trend where drilling and completion activity is slowing in both Canada and the United States as companies begin to assess the full economic implications of rapid changes in commodity prices.

While the industry is still very active, there are clear indicators that this shift to tight oil and liquids is not without consequences. Current volatility in commodity prices is negatively impacting company cash flow and investor confidence. The near term future is unclear, but what can be said with certainty is that technology, while it may be the salvation of sustainability, now looks to also be the biggest threat towards economic growth for the oil and gas sector. S B.C. Oil &â&#x20AC;&#x2C6;Gas Report â&#x20AC;˘ 2012 121

Index to advertisers Action Health & Safety Services.................................83 Adair Pilot Car Service...............................................74 Akita Drilling Ltd....................................................... 91 Allmand.................................................................... 101 Aluma Systems...........................................................39 Apex Technological Field Services............................. 31 Applus RTD................................................................93 BC Safety Authority....................................................73 Bk Two-Way Radio Ltd...............................................98 Blackgold Emergency Planners Inc...........................56 Browns Chevrolet Buick GMC.................................. 71 Brutus Truck Bodies...................................................28 Can-Am Geomatics....................................................32 Canadian Society for Unconvential Resources.......IBC CanaSteel Rebar Services...........................................83 Canruss Medical and Safety Services........................47 Carbon Mountain Drilling & Water Services Ltd.......72 CarGo West.................................................................69 Cascade Energy Services LP.......................................79 Chetwynd & Area Economic Development..............19 City of Dawson Creek................................................35 ClearStream................................................................67 COR Solutions...........................................................14 D & D Insulators Ltd. ................................................ 41 D & G Traffic Control Inc..........................................92 D & T Electric and Controls Ltd................................20 DEL Equipment..........................................................86 District of Tumbler Ridge............................................8 Diversified Transport Ltd...........................................59 Energetic Services Inc.................................................82 Energy Conference 2012............................................65 Enform........................................................................ 51 Envirofuel...................................................................95

EOS Pipeline & Facilities Inc.....................................45 Fabcor Group.............................................................49 First Alert Locating Ltd...............................................57 Focus Corporation.....................................................99 Fort Nelson Heating Ltd............................................43 Gar-North Enterprises Inc.........................................82 Gemini Corporation.................................................. 61 Graham Construction & Engineering Inc............... IFC Hamilton Copiers......................................................18 Heat Hawg Inc............................................................33 J.E. Sellors Services Ltd............................................. 117 Jetsue Ventures Ltd.....................................................87 JPSI – Johnston Power Sourcing Inc.......................109 K. Leer Enterprises........................................................4 Kamber Energy Services.............................................75 Kendra’s First Aid.....................................................102 Lakewood Electric Ltd................................................94 Liquid Capital Pacific Corp.......................................85 Lloydminster Economic Development................... 115 Ln’s First Aid Services.................................................29 M & M Resources........................................................99 Macro Industries........................................................27 Marmit Plastics Inc................................................... 119 Muskwa Valley Ventures............................................38 Nortech Business Solutions.....................................104 Northern Rockies Economic Development.............. 81 Northlands Water & Sewer Supplies Ltd...................83 Peace Energy Lodge..................................................108 Peregrine Pressure Testing Ltd.....................................9 Petro Canada..............................................................17 Phoenix Rentals Ltd...................................................23 Praxair.......................................................................106 Quicksilver Resources................................................ 11

Radar Road Transport Ltd.......................................... 21 Raven Oilfield Rentals................................................62 Raymac Water Treatment Services.............................34 Safety Boss Inc...........................................................111 SEI Industries Ltd.....................................................105 Shelter Industries.....................................................100 Sidewinder Coil Services Inc................................... 107 Sil Industrial Minerals...............................................30 Skybase Geomatics Solutions Inc........................... 116 Society Of Petroleum Engineers................................25 Specialized Tech Inc...................................................82 Stikine Gold Corporation............................................3 Strad Energy Services....................................................7 Streeper & Sons Trucking Ltd....................................94 Summit Liability Solutions.......................................77 Super 8 Motel Fort Nelson......................................109 Suretuf Containments Ltd.........................................37 Synergy Land Services Ltd..........................................89 T3 Energy Services......................................................13 Technicoil Corp.......................................................... 10 Tervita.....................................................................OBC The Driving Force.................................................... 122 Tower Holdings..........................................................42 Trans Peace Construction (1987) Ltd.........................5 Transwest Air..............................................................93 V.E. Brandl..................................................................15 Villers Air Services......................................................90 Visser Consulting Ltd.................................................97 Watson Gloves............................................................12 Wide Sky Disposal (1989) Ltd................................ 113 WorkSafe BC........................................................ 50, 88

Canadian owned and operated since

1978

122 B.C. Oil & Gas Report • 2012

14th Annual Unconventional Resources Conference

October 3 & 4, 2012 | Calgary TELUS Convention Center

REGISTER NOW! OCTOBER 3 - 4, 2012 CALGARY, ALBERTA

Back to our Roots The Canadian Society for Unconventional Resources (CSUR) is proud to announce the organization and hosting of our 14th Annual Technical Conference. The theme of our 2012 conference is Frac To The Future, a title that embraces the future of the unconventional resource development while at the same time looking back at the 10 years CSUR has been an organization and the 14 years this conference has been held.

Keynote Speakers Geoscience Unconventional Transformation of the Canadian Petroleum Industry Brad Hayes, Petrel Robertson Drilling & Completions I Unconventional Fracture Fluids for Unconventional Reservoir Development Murray Reynolds, Ferus Inc. Government & Environmental Issues Gas to Liquids - Understanding the Technology and the Opportunity Robert Taylor, Halliburton Drilling & Completions II Continuous Improvement and Drilling Optimization in Horn River Basin Elie Meyer, Encana Corp.

www.csurconference.ca

Who Should Attend Geologists Geophysicists Engineers Managers Regulators Academics Land & Stakeholder Professionals

There are two ways to save up to $350 on your registration fee:

CSUR Member Discount Employees of Member Companies save $200

Bundle Discount Register 6 people from your company & each person saves $150

Register online at www.csurconference.ca

Done well, waste management is a chance to maximize your returns, minimize your impact on the environment and recover valuable materials. For over 30 years, Tervita has been providing waste processing and environmental management services to natural resource and industrial companies that share our values.

We own and operate 95 state-of-the-art waste management facilities including engineered landfills and North Americaâ&#x20AC;&#x2122;s largest network of strategically located treatment, recovery and disposal sites.

But more than just safe and environmentally sound waste processing, we also recover valuable oil, metal and other material from that waste, maximizing your returns.

Whether you need a single scrap metal bin or a custom-designed on-site waste processing solution, working with Tervita will transform your waste management from an obligation into an opportunity to make your operations simpler, increase your profit and decrease your impact on the environment.

Visit tervita.com or call 1-855-TERVITA today.

A N o r t 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 g y s e r v i c e s Copyright Tervita Corporation 2012. EARTH MATTERS and the TERVITA logo are the trademarks of Tervita Corporation. All rights reserved.