Pipeline 20190508

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PIPELINE NEWS SASKATCHEWAN’S PETROLEUM MONTHLY

Get your OILFIELD NEWS on the go at WWW.PIPELINENEWS.CA

Canada Post Publication No. 40069240

May 2019

www.pipelinenews.ca

Vol. 12/12

Regina Rally Against the Carbon Tax KǀĞƌ ϳϬϬ ƚƌƵĐŬƐ ŽĨ Ăůů ƚLJƉĞƐ ĂŶĚ ƐŝnjĞƐ ĂƌĞ ĞƐƟŵĂƚĞĚ ƚŽ ŚĂǀĞ ƌŽůůĞĚ ƚŚƌŽƵŐŚ ZĞŐŝŶĂ ĂƐ ƉĂƌƚ ŽĨ ƚŚĞ ĐŽŶǀŽLJ ƚŚĂƚ ĐƵůŵŝŶĂƚĞĚ ŝŶ ƚŚĞ ZĞŐŝŶĂ ZĂůůLJ ŐĂŝŶƐƚ ƚŚĞ ĂƌďŽŶ dĂdž ŽŶ Ɖƌŝů ϰ͘ dŚĞ ĞǀĞŶƚ ĨŽĐƵƐĞĚ ŽŶ ƚŚĞ ĐĂƌďŽŶ ƚĂdž͕ ďƵŝůĚŝŶŐ ƉŝƉĞůŝŶĞƐ͕ ĂŶĚ ŬŝůůŝŶŐ ŝůůƐ ϲϵ ĂŶĚ Ͳϰϴ͘ dŚŝƐ ƉŚŽƚŽ ǁĂƐ ƚĂŬĞŶ ĨƌŽŵ ƚŚĞ ŽǀĞƌŚĞĂĚ ǁĂůŬǁĂLJ ďĞƚǁĞĞŶ ƚŚĞ ĞůƚĂ ,ŽƚĞůƐ ďLJ DĂƌƌŝŽƩ ZĞŐŝŶĂ ĂŶĚ ĂƐŝŶŽ ZĞŐŝŶĂ͘ WŚŽƚŽ ďLJ ƌŝĂŶ ŝŶĐŚƵŬ

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PIPELINE NEWS May 2019

Oil show award winners named ^ ^< d , t E K/> E ' ^ ^,Kt d < W> :hE ϱͳϲ By Brian Zinchuk Weyburn – The award winners have now been named for the Saskatchewan Oil and Gas Show which will be held on June 5-6 in Weyburn. The Saskatchewan Oilman of the Year is Lane McKay, executive chairman of Steel Reef Infrastructure Corp. Dennis Day, president of Fast Trucking Service, is the Southeast Saskatchewan Oilman of the Year. McKay and Day will be honoured during the prime rib dinner on Wednesday, June 5. The Saskatchewan Oilpatch Hall of Fame inductees are Ray Frehlick, president and general manager of Prairie Mud Service; Dean Potter, president and CEO of DPX

Inc., and Eldon McIntyre, CEO of Jarrod Oils. The Southeast Saskatchewan Legends are Dean Pylypuk, Estevan manager for the Saskatchewan Ministry of Energy and Resources; Jerry Mainil, Caprice Resources/Jerry Mainil Ltd., and Glen Grimes, president and CEO of Petro Care Electric, Gold West WireLine and Grimes Energy Ltd. The hall of fame inductees and Legends will be honoured at a noon luncheon on June 5, where Premier Scott Moe will be the keynote speaker. The provincial cabinet will be holding its weekly cabinet meeting in Weyburn that morning, so you can expect to run into cabinet ministers taking in the

show during the afternoon. Vivian Krause will be the guest speaker at 2 p.m. following the awards banquet. Krause had gained national attention for her dogged efforts over many years exposing the foreign money campaign to landlock Canadian oil. Indeed, many of the points she has raised were specifically named by Alberta Premier-designate Jason Kenney during his acceptance speech on election night, April 16. Rex Murphy will be speaking at 12:30 p.m. on the Thursday, following the industry luncheon. The day before the main event, exhibitors will be able to take place in an exhibitor golf tournament throughout the day at the Weyburn Golf Club. Tues-

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April 22. “Ticket sales are going great.” Event tickets are available on the website Oilshow.ca “We’re looking for-

ward to another amazing oil show. We have some amazing speakers lined up, and great interest,” said Hulbert.

PTRC president promotes Williston Basin Petroleum Conference to Estevan Chamber By Brian Zinchuk Estevan – Petroleum Technology Research Centre president and CEO Dan MacLean came to Estevan on April 17 in part to speak to the Estevan Chamber of Commerce about the upcoming Williston Basin Petroleum

Conference on May 28-29 in Regina. The event will take place at the Delta Hotels by Marriott in Regina. This show will broaden the perspective of the annual conference, which has typically focused on the Williston Basin in the

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Regina Rally Against the Carbon Tax By Brian Zinchuk Regina, Weyburn, Estevan – At 6 a.m., they started to gather in the KRJ yards in Estevan, one filling with heavy trucks, the second with a line of light vehicles. This was one of the principle gathering points for the convoy leading to the Regina Rally Against the Carbon Tax on April 4. The folks in Estevan couldn’t claim the earli-

est start time, however, as a group from Carnduff hit the road at 5:30, pulling into the KRJ yard to join the Estevan group an hour later. The day before, pressure washers could be seen and heard around Estevan as participants in the convoy washed their units to make them look sparkling. An overnight rain spoiled some of their efforts, but the clouds broke just as

the convoy left Estevan at 7 a.m. The leading edge of the convoy reached the southwest corner of Weyburn at 8 a.m., and here is where things really picked up. Two groups were lined up in Weyburn, one on 22nd Avenue, and a second that left Arcola at 7 a.m. By the time the last truck in that Arcola group got going on Highway 39, it was 8:40. In other words,

Approximately 116 semis and lighter vehicles can be seen in this photo, forming two ůŽŽĆ‰Ć? Ĺ?Ĺś ƚŚĞ <Z: Ç‡Ä‚ĆŒÄšĆ?Í• ĹŠĆľĆ?Ćš Ä?ÄžĨŽĆŒÄž ĆŒŽůůĹ?ĹśĹ? ŽƾĆš ŽĨ Ć?ĆšÄžÇ€Ä‚ĹśÍ˜ LJ ƚŚĹ?Ć? ƉŽĹ?Ŝƚ͕ ƚŚĞ Ä?ŽŜĆ&#x;ĹśĹ?ĞŜƚ ĨĆŒŽž Ä‚ĆŒĹśÄšƾčÍ• Ç ĹšĹ?Ä?Ĺš ĹŻÄžĹŒ ĆšĹšÄžĆŒÄž Ä‚Ćš Ϲ͗ϯϏ Ä‚Í˜ĹľÍ˜Í• ŚĂĚ ĹŠĹ˝Ĺ?ĹśÄžÄšÍ˜ WŚŽƚŽ Ä?LJ ĆŒĹ?Ä‚Ĺś Ĺ?ĹśÄ?Ĺšƾŏ

the convoy was already 40 minutes long, heading into Regina. There, it was joined on the eastern side of the city by many more units. The numbers reported that day were in excess of 700 units, mostly semis, taking part. Once parked on the exhibition grounds, the convoy participants as well as others who weren’t in the convoy gathered in the Queensbury Centre. The room chosen was one of those that can be expanded by opening up partitions to the next room. Those partitions were indeed opened, to the point where attendees were asked to use a second room across the hall, as the primary one was filled to capacity. The attendance was estimated at 1,500, according to staff from the premier’s office who conferred with convention centre personnel. That 1,500 stood throughout the rally, which had a relatively short program. Dan Cugnet, chairman of Valleyview Petroleum of Weyburn acted as master of ceremonies. The speakers included SourisMoose Mountain MP Dr. Robert Kitchen, Regina-

dĹšĹ?Ć? Ç Ä‚Ć? ƚŚĞ Ç€Ĺ?ÄžÇ Ä¨ĆŒŽž ƚŚĞ ĞůƚĂ ,ŽƚĞůĆ? Ä?LJ DÄ‚ĆŒĆŒĹ?ŽƊ Ä‚Ć? the convoy progressed down Regina’s Saskatchewan Drive. Photo by Brian Zinchuk Wascana Conservative candidate Michael Kram, Estevan farmer and auctioneer Jason LeBlanc, and Premier Scott Moe. The focus of the event was to fight the federal carbon tax, build pipelines,

kill Bill C-69, the Impacts Assessment Act, and Bill C-48, the tanker ban off the northern British Columbia coast. The applause for LeBlanc was arguably even Ĺš 3DJH $

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PIPELINE NEWS May 2019

PIPELINE NEWS

EDITORIAL

Publisher Rick Sadick - 1.306.634.2654 Editor Brian Zinchuk - 1.306.461.5599 Advertising Sales: 1.306.634.2654 Deanna Tarnes - Advertising Manager Teresa Hrywkiw Kimberlee Pushie Production: Fay Bonthoux

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To submit a stories or ideas: Pipelines News is always looking for stories or ideas from our readers. To contribute please contact Brian Zinchuk at 306-461-5599. Subscribing to Pipeline News: Pipeline News is a free distribution newspaper, and is now available online at www.pipelinenews.ca Advertising in Pipeline News: Advertising in Pipeline News is a newer model created to make it as easy as possible for any business or individual. Pipeline News has a group of experienced staff working throughout Saskatchewan, Manitoba and parts of Alberta, so please contact the sales representative for your area to assist you with your advertising needs.

Published monthly by the Prairie Newspaper Group, a division of Glacier Ventures International Corporation, Central Office, Estevan, Saskatchewan. Advertising rates are available upon request and are subject to change without notice. Conditions of editorial and advertising content: Pipeline News attempts to be accurate, however, no guarantee is given or implied. Pipeline News reserves the right to revise or reject any or all editorial and advertising content as the newspapers’ principles see fit. Pipeline News will not be responsible for more than one incorrect insertion of an advertisement, and is not responsible for errors in advertisements except for the space occupied by such errors. Pipeline News will not be responsible for manuscripts, photographs, negatives and other material that may be submitted for possible publication. All of Pipeline News content is protected by Canadian Copyright laws. Reviews and similar mention of material in this newspaper is granted on the provision that Pipeline News receives credit. Otherwise, any reproduction without permission of the publisher is prohibited. Advertisers purchase space and circulation only. Rights to the advertisement produced by Pipeline News, including artwork, typography, and photos, etc., remain property of this newspaper. Advertisements or parts thereof may be not reproduced or assigned without the consent of the publisher. The Glacier group of companies collects personal information from our customers in the normal course of business transactions. We use that information to provide you with our products and services you request. On occasion we may contact you for purposes of research, surveys and other such matters. To provide you with better service we may share your information with our sister companies and also outside, selected third parties who perform work for us as suppliers, agents, service providers and information gatherers.

By becoming more like Alberta, has ^ĂƐŬĂƚĐŚĞǁĂŶ ůŽƐƚ ŝƚƐ ĐŽŵƉĞƟƟǀĞ ĞĚŐĞ͍ A common theme over the last decade from the Saskatchewan government has been the adoption of Alberta regulations, or something that is a very close approximation, in the oil and gas industry. We’ve seen this in the business process implementation, venting and flaring regulations, burner regulations and other areas. One of the often-cited reasons for this is that most of the larger oil companies that work in Saskatchewan also work in Alberta, and it makes it easier for them to have one type of regulations to work under. A second point is there’s no reason to re-invent the wheel, or regulations, as it were. If it works in Alberta, it’s a lot easier to cut-and-paste their regs than cook up something entirely different here. As such, Saskatchewan’s regulatory regime has grown much closer to Alberta’s. We should point out that Alberta’s regulatory regime is also much-criticized for being slow and cumbersome. That’s one of the reasons we’ve heard from many oil company executives over the years that they prefer to work in Saskatchewan as a result. The problem lays in the geology. Our rocks simply are not as good as Alberta’s. So if all things are going to be equal on the regulatory and cost of doing business side, Saskatchewan will lose every time because of their better geology. Perhaps some of this came to pass on April 11, when the Saskatchewan Ministry of Energy and Resources announced bi-monthly Crown Land Sales. It came it at a measly $1.5 million. In the nearly 11 years Pipeline News has been published in this form, it was one of the worst land sales. Pathetic and abysmal would both be appropriate descriptors. There may be several reasons for this – including the fact Crescent Point Energy Corp. is selling nearly all their production east of Highway 47, but competitiveness is likely one of them. No matter how bleak these things may be, ministries are expected to put a positive spin on it. So the accompanying press release noted, “On both a fiscal and calendar year basis, Saskatchewan continues to post the highest average-per-hectare revenues among the western provinces, ‘A clear indicator of Saskatchewan’s continuing competitiveness and status as a jurisdiction of choice for the industry,’ the release said. “‘Industry sources frequently identify Saskatchewan as having a very attractive operating environment and fiscal regime,’ Energy and Resources Minister Bronwyn Eyre said. ‘We are also home to some of the best and most cost-effective conventional oil and gas development opportunities you will find anywhere. It’s not surprising that when we talk to audiences around the world about the investment opportunities in Saskatchewan, we are often talking about oil and gas.’” Jon Hromek, president and CEO of Adonai Resources II emailed us a contrary opinion, and an hour-long discussion on

April 16 laid out many of his concerns. We also spoke to two other small junior producer CEOs on that day, and they all sung from the same choirbook. That date was poignant, as that night Jason Kenney swept to power as the new Alberta premier. His acceptance speech mentioned a drive to cut red tape and reduce business taxes to make that province more competitive. In the collective opinion of the Saskatchewan CEOs, this province is not all that competitive anymore. They all feel that the Saskatchewan oil industry is, for a lack of a better term, being henpecked to death. Indeed, asking one of them if this was “death by 1,000 cuts,” he agreed. The name of a Feb. 1, 2018, report by Benjamin Dachis of the C.D. How Institute just happened to be entitled, “Death by a Thousand Cuts? Western Canada’s Oil and Natural Gas Policy Competitiveness Scorecard.” This is not a coincidence. If you have a choice of investing in Alberta, where there is much better geology, or Saskatchewan, where the geological risk is far higher, the CEOs say Saskatchewan needs to be competitive in other areas to make up for that geological risk. Since our regulatory regime is now more and more like Alberta, we lose. The suggestion isn’t that we shouldn’t be as stringent or as good of stewards, but it should be about different regs applicable to different situations. One CEO noted that through various mechanisms, 50,000 to 60,000 barrels of oil equivalent worth of production is up for sale in Saskatchewan in one way or another, including public offerings. The six parcels that Crescent Point has up for sale have been shopped around for a long time now. While we’ve heard some deals may soon be in place, we’ve not heard any announcements yet. The length of time this is taking is definitely a reflection on the interest, or lack thereof, in Saskatchewan. It’s not just Alberta that we need to be concerned about. These days, that’s minor. It’s Texas, and to a lesser extent, North Dakota, which are sucking all the oxygen out of the room, leaving Canada gasping. Remember, they don’t have US$100 oil, either. Yet in the past decade Texas, alone, has added almost as much production as all of Canada currently makes. North Dakota in the last year has added 200,000 bpd of oil production. That’s about 41 per cent of Saskatchewan’s total production – and they added it in a single year. The Trump administration is taking a substantial growth trend accomplished under the Obama regime and pouring steroids into it. This is who we are competing with now. Instead of just repeating worn out mantras of about competitiveness, perhaps the Saskatchewan government needs to take a good look at this, before we are left behind.

PIPELINE NEWS May 2019

Why do I have to keep asking people why they aren’t wearing animal skins? April 4 was going to be a big day. So big, I took our 14-year-old daughter, Katrina, out of class to help me cover it. Why? As I told several people, “Not all education occurs in the classroom.” Not one person disagreed with me. Many wished they had brought their kids, as it was an education. This day would be the Regina Rally Against the Carbon Tax, but don’t let that name fool you – it wasn’t a one issue protest. The four points included the carbon tax, building pipelines, killing Bill C-69 (the no more pipelines bill) and killing Bill C-48 (the tanker ban off the northern B.C. coast). After a month of planning, it had all come to a head. Somewhere over 700 trucks, mostly heavy trucks, rolled into Regina as part of the convoy that preceded the

rally. I had been covering the principle planning meetings in Weyburn each Thursday leading up to it. The first one I attended was essentially “Day 2,” after the core group of organizers first tossed out the idea. In the following weeks, the group kept growing and growing, with more and more people stepping up to the plate. One of the things I glommed onto was that there was a very high agricultural component to the organizing committee. While several of the oilmen were also farmers, there were several straight-up farmers pouring their heart and soul into this event as well. That was eye-opening. If ever the ag and oil sectors came together in a common cause, it was before my time. Yet this partnership of two of the

most important sectors of our economy worked well together, and for the same purpose. This bore out in the participation of the convoy. The lady who handled all the registrations told me the day before the trucks rolled that her estimation was there was a 60/40 split, in favour of ag, when it came to registrations. Now, many of the oilfield service sectors may have sent more units per individual company, but whichever way the cookie crumbled, this was not a token presence from either ag or oil. They were in this together. There was no small coincidence that the farmers came out in droves, especially after NDP Leader Ryan Meili took a run at Estevan farmer and auctioneer Jason LeBlanc. When he spoke at the rally, his ovation was even louder than Premier Scott Moe’s. He

OPINION

FROM THE TOP OF THE PILE

By Brian Zinchuk was one of their own. I had made arrangements to position cameras high up in the Delta Hotels by Marriott, positioned right along the convoy route through downtown Regina. As Katrina filmed from street level, I moved about, and found myself in the overhead walkway between the hotel and the casino. It was there, while broadcasting a live stream on Facebook, I encountered what could be best described as a Millennial hipster. Standing beside me, he appeared to be talking to himself about why this convoy was such a bad idea. He talked about how we shouldn’t be using oil for transportation, but rather electrical vehicles, for instance. I am not one to allow comments like that to slide, so I pointed out to him that there isn’t a battery made that could run

one of those trucks, like the cement truck passing below us, for a day. As for why this was going on, I explained that compared to 2014, about half of the oilfield lost their jobs. I was biting my tongue, as I didn’t want to embarrass the gentleman from the hotel who had been kind enough to assist me that morning. But as the beaking off Millennial continued his diatribe about the noise of the convoy near his home, I looked over to him and said, “I see you are wearing synthetic clothes, and plastic glasses. You had a choice, sir. You could have worn animal skins, but you didn’t.” He replied that he was wearing what was available to him. I replied that my father was a hunter, and hunted deer. If he wanted to, he (the hipster) could have worn animal skins, but he wasn’t.

He had a choice. I stepped away at that point, lest I get into it full force. I was on-mission, and I didn’t want to embarrass the hotel man. It was only three days later when I realized this was almost wordfor-word identical to a conversation I had in the fall of 2017, at the University of Regina, with two women who were making similar comments at a student film called “Crude Power: An Investigation into Oil, Money and Influence in Saskatchewan.” I don’t know how I keep ending up beside these types of people, but as I pointed out in a speech to the Redvers Oil Showcase, I didn’t see their horses. Educational, indeed. Brian Zinchuk is editor of Pipeline News. He can be reached at brian. zinchuk@sasktel.net.

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Saskatchewan Now is theme of conference Ż 3DJH $ industry. There will be core workshops held on May 27, the day prior to the main event. That evening will see an invitation-only VIP dinner. The main portion of the conference starts at 8 a.m. and runs until 6 p.m., with both business and technical events taking place. A conference reception and STARS air ambulance silent auction will follow at the Casino Regina Ballroom at 6:30 p.m. While the main event ends on May 29, a tour of SaskPower’s Boundary Dam Unit 3 Carbon Capture Project and the Aquistore project will be offered on May 30, starting at 8 a.m. While in Estevan, MacLean noted that he started is current position just before the 2017 edition of the conference. He wasn’t impressed with it. But he was impressed the following year when the conference was held in Bismarck, N.D. “Here’s what I heard from the governor, and the Secretary of the Interior: ‘We, in North Dakota are at 1.2 million barrels of oil a day, we’re going to 2 million barrels of oil a day. We’re going to do it with CO2-EOR (carbon dioxide enhanced oil recovery). We can see ourselves as a net importer of CO2 in the near future. We are removing barriers for installing flowlines and pipelines. We have six new gas plants that are starting up.’

Third Aquistore well being considered

tŚŝůĞ ƚŚĞ ƋƵŝƐƚŽƌĞ ƉƌŽũĞĐƚ ĚŝĚ ƌĞĐŽǀĞƌ ƐŽŵĞ ĐŽƌĞ͕ ĂƐ ƐĞĞŶ ŝŶ ƚŚŝƐ ϮϬϭϮ ĮůĞ ƉŚŽƚŽ͕ ƚŚĞLJ ĚŝĚŶ͛ƚ ŐĞƚ ĂƐ ŵƵĐŚ ĂƐ ŝŶŝƟĂůůLJ ŚŽƉĞĚ͘ /Ĩ Ă ƚŚŝƌĚ ǁĞůů ŝƐ ĚƌŝůůĞĚ͕ ŵŽƌĞ ĐŽƌĞ ǁŽƵůĚ ďĞ ĚĞƐŝƌĂďůĞ͘ “The Secretary of the Interior says, ‘Oil and gas is great for the State of North Dakota, and its great for the United States. We are an environmentally conscientious producer.’” That motivated him to seek to reinvigorate this years’ conference in Regina. “So, we need to do this here. We need to demonstrate to people that Saskatchewan is a great place to invest in our industry. So maybe the Williston Basin is a bit mature, so we have reinvigorated this conference. It is still called the Williston Basin Confer-

ence, but with the catchphrase, ‘Saskatchewan Now,’” MacLean told the roughly 30 people in attendance. With the business forums planned, he said, “We’re going to talk about doing business here.” That includes talking about the mix of energy going forward. “We’re going to talk about social acceptance, and what is it that industry needs to continue to be aware of, and do, in order to continue to have favour in the areas we operate in. There will be private

equity representation and two technology panels. Those will focus on things like artificial intelligence, big data and machine learning. “We’re going to talk with young people. We’re going to find out from them what’s important to them. What do they know, and don’t know, about our industry? What should we be aware of, as old guys and gals, so that, moving forward, it continues to be acceptable to them.” Registration information can be found at wbpc. ca

After the presentation, MacLean touched on future developments with the Aquistore project Aquistore involves two of the deepest wells in Saskatchewan, an injection well, and an observation well, located approximately three kilometres due west of the Boundary Dam Carbon Capture plant. Whatever carbon dioxide captured by that plant that is not used by the Whitecap-operated Weyburn Unit is pumped down the Aquistore injection well. “We’ve recognized a couple things about Aquistore. One of them is that it’s limited to one injection well, and one observation well. The observation well is a small diameter well that doesn’t lend itself to being a new injection well, and it’s 150 metres away from the injection well,” he noted “We see a potential need to drill a third well for a number of reasons. Number one is to get in front of the flood, to understand how that thing is moving forward. So as an observation well, to measure and monitor beyond the first observation well gave us.” It would also be a backup injection well. With the new equivalency agreement, if the Weyburn Unit, for whatever reason, cannot take the CO2 produced, there is a need for a home for it. The singular injection well may not have enough capacity in that regard, thus the need for a second well as a backup. The technical group is considering placement of the third well, but it won’t be too far away. The two previous wells, combined, cost between $9 and $10 million. But drilling costs are much lower now. MacLean would also like to see a much larger piece of core than was recovered at Aquistore. They only got the top portion pulling off the cap rock, but there were problems retrieving anymore. To that end, he foresees working with DEEP Earth Energy Production, whose first well, drilled south of Torquay, also goes into the target Deadwood formation that Aquistore utilizes. (DEEP, in turn, had benefited from some of the knowledge acquired from Aquistore.) SaskPower, which owns and operates Aquistore, would be paying for this well should it go ahead. “We’re looking at costing this out in the next three months,” he said. If the third well does proceed, it is expected to be next year.

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PIPELINE NEWS May 2019

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PREOWNED INVENTORY 2003 GMC Sierra 1500 SLT, Stock #: S18029 .................................. $6,900 2005 Chevrolet Silverado 1500 LT, Stock #:S17100B ..................... $8,000 2015 Dodge Dart SE, Stock #: 19171B ............................................... SOLD 2014 Jeep Compass North SUV, Stock #: 18071B ........................$19,900 2015 Nissan Juke SV, Stock #: 19061A.........................................$20,600 2014 Ram 1500 SLT, Stock #: S17409A .............................................. SOLD 2011 Ram 1500 Sport, Stock #: S17401A .......................................... SOLD 2014 Dodge Charger SXT Plus, Stock #: 18208B............................... SOLD 2014 Dodge Durango, Stock #: 18195A ............................................. SOLD 2016 Jeep Patriot, Stock #: 19014A ..............................................$23,500 2016 Jeep Compass Sport, Stock #: 18240A ................................$23,990 2014 Audi, Stock #: 18046A ..........................................................$25,900 2015 Jeep Cherokee Limited, Stock #: 18253A ............................$28,600 2018 Dodge Grand Caravan GT, Stock #: 18284A .............................. SOLD 2015 Jeep Grand Cherokee Limited, Stock #: 19127A .................$28,900 2016 Jeep Patriot Sport SUV, Stock #: 17497A .............................$29,100 2017 Dodge Journey SE Plus SUV, Stock #: 18289A.....................$29,950 2018 Ford Edge SEL, Stock #: 18275A ............................................... SOLD 2014 Ram 1500 Sport, Stock #: 18254C .......................................$31,900 2014 Ford Edge Sport, Stock #: S17307A .....................................$32,900 2016 Jeep Cherokee Trailhawk, Stock #: 18060A ........................$32,900 2014 Dodge Durango R/T, Stock #: 18263A ....................................... SOLD 2014 Ram 1500 Sport Crew CAB 4WD, Stock #: S17034A............$33,300 2017 Jeep Cherokee Trailhawk, Stock #:19009A.........................$34,976 2014 Jeep Grand Cherokee Limited, Stock #: 18237A .................$35,900 2013 Ram 1500 Laramie Crew CAB, Stock #: 17196B .................$35,900 2017 Dodge Grand Caravan SXT, Stock #: 18303A .......................$36,100 2017 Dodge Grand Caravan SXT, Stock #: 18302A .......................$36,100 2018 Jeep Cherokee Sport, Stock #: S18083................................$36,250 2017 Ram 1500 ST, Stock #: 18201A ............................................$36,600 2017 FIAT 500 Abarth, Stock #: S17492........................................$36,974 2018 Dodge Charger GT, Stock #: 18272A ....................................$37,500 2014 Ram 1500 Longhorn, Stock #: 17318C.................................$38,200 2017 Dodge Journey GT, Stock #: S17289 ....................................$38,900 2017 Dodge Journey GT, Stock #: S17450 ....................................$38,900 2016 Cadillac SRX Premium, Stock #: 19051B .............................$39,900 2018 Dodge Charger GT, Stock #: S18010 ....................................$39,900

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2016 Ram 1500 Limited Crew Cab, Stock #: 19043A ...................$40,600 2018 Jeep Compass Trailhawk, Stock #: S18002 ........................$41,403 2017 Ram 1500 Sport, Stock #: 18230B .......................................$41,900 2017 Jeep Grand Cherokee Limited, Stock #: 18274A .................$42,400 2017 Dodge Journey GT, Stock #: 19098A ......................................... SOLD 2018 Jeep Cherokee Trailhawk, Stock #: S18078 ........................$42,500 2016 Ram 1500 Sport, Stock #: 19055A .......................................$42,900 2012 Ram 3500 Longhorn, Stock #: 18280A .................................$43,100 2017 Jeep Cherokee North SUV, Stock #: S17054 ........................$43,320 2017 Jeep Grand Cherokee Limited, Stock #: 18266A .................$43,900 2017 Ram 1500 Rebel, Stock #: 19071A .......................................$46,990 2014 Ram 3500 Laramie, Stock #: 18309A ........................................ SOLD 2018 Jeep Grand Cherokee Trailhawk, Stock #: 18282A .............$47,900 2016 GMC Yukon XL SLT, Stock #: 18308A ........................................ SOLD 2017 Ram 1500 Sport, Stock #: S17467 ............................................ SOLD 2018 Jeep Grand Cherokee Limited, Stock #: S18241 .................$55,120 2018 Jeep Grand Cherokee Limited, Stock #: S18261 .................$55,224 2018 Jeep Grand Cherokee Limited, Stock #: S18251 .................$55,284 2018 Ram 1500 Sport, Stock #: S18095 .......................................$56,389 2018 Dodge Charger R/T, Stock #: S18058 ...................................$56,850 2018 Ford F-150 Lariat, Stock #: 18290A .....................................$58,990 2017 Ram 1500 Sport, Stock #: S17432 .......................................$67,330 2016 Ram 1500 Laramie, Stock #: 18154A ........................................ SOLD 2016 Ram 1500 Rebel, Stock #: 19089A ............................................ SOLD 2003 GMC Sierra 1500 SLT Extended/Double Cab, Stock #: S18029C ..... $6,900 2014 Jeep Compass North SUV, Stock #: 125690 ........................$19,900 2015 Dodge Journey R/T, Stock #: 19114B ..................................$21,990 2015 Ram 1500 Sport, Stock #: 19133A ......................................$29,900 2014 Ram 1500 Sport Crew CAB 4WD, Stock #: 18284B .............$29,990 2018 Ram 1500 Sport, Stock #:19161A........................................$43,900 2018 Chevrolet Tahoe Premier, Stock #:19049A ..........................$69,990 2014 Ram 3500 Longhorn, Stock #:S14107 ...................................... SOLD 2019 Ram 1500 Sport, Stock #:S19149........................................$64,990 2017 Ram 3500 Laramie Limited, Stock #:19041A........................... SOLD 2016 Dodge Grand Caravan SXT, Stock #:19150A .......................$19,990 2015 Dodge Journey SE Plus SUV, Stock #:19105A.....................$15,990 2017 Ram 1500 Laramie, Stock #:19166A ...................................$42,990

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PIPELINE NEWS May 2019

NDP leader's comments spur interest in convoy Ż 3DJH $ greater than that for Moe. Four days earlier, his name was brought up in question period by NDP Leader Ryan Meili, who linked LeBlanc to the yellow vest movement, saying, “Far-out-there conspiracy theories, climate change denial, antiimmigrant, anti-Muslim, anti-Semitic sentiment — this is what the yellow vest movement has become, Mr. Speaker. And I do not understand, but I’d ƐƚĞǀĂŶ ĨĂƌŵĞƌ ĂŶĚ ĂƵĐƟŽŶĞĞƌ Jason LeBlanc͕ ŽŶĞ ŽĨ ƚŚĞ ŽƌŐĂŶŝnjĞƌƐ ĂŶĚ ƐƉŽŬĞƐƉĞŽƉůĞ like the Premier to explain why he wants to be associŽĨ ƚŚĞ ĞǀĞŶƚ͕ ŚĂĚ ƚĂŬĞŶ ŚŝƐ ůƵŵƉƐ ĨƌŽŵ E W >ĞĂĚĞƌ ZLJĂŶ DĞŝůŝ͘ dŚŝƐ ǁĂƐ ƌĞĐŽŐŶŝnjĞĚ ĂŶĚ ĂĐŬŶŽǁůĞĚŐĞĚ ďLJ ƚŚĞ ĐƌŽǁĚ͕ ǁŚŽ ĐŚĞĞƌĞĚ ĞǀĞŶ ůŽƵĚĞƌ ĨŽƌ >Ğ ůĂŶĐ ƚŚĂŶ ƚŚĞLJ ĚŝĚ ated with that group.” The day after the ƚŚĞ ƉƌĞŵŝĞƌ͕ ǁŚŽ ǁĂƐ ƚŚĞ ŚĞĂĚůŝŶĞ ƐƉĞĂŬĞƌ͘ WŚŽƚŽ ďLJ ƌŝĂŶ ŝŶĐŚƵŬ

dŚĞ ůĞĂĚ ĞůĞŵĞŶƚ ŽĨ ƚŚĞ ĐŽŶǀŽLJ ƌŽůůĞĚ ŝŶƚŽ tĞLJďƵƌŶ Ăƚ ϴ Ă͘ŵ͘ LJ ƚŚĞ ƟŵĞ ƚŚĞ ůĂƐƚ ƚƌƵĐŬ ƐƚĂŐĞĚ Ăƚ tĞLJďƵƌŶ ŚĂĚ ũŽŝŶĞĚ͕ ŝƚ ǁĂƐ ϴ͗ϰϬ͘ dŚĞ ĐŽŶǀŽLJ ǁĂƐ ŶŽǁ ϰϬ ŵŝŶƵƚĞƐ ůŽŶŐ͘ WŚŽƚŽ ďLJ ƌŝĂŶ ŝŶĐŚƵŬ

rally, Meili made something of an apology to LeBlanc on CJME’s John Gormley Live, and said his comments were misinterpreted. LeBlanc had, in fact, been the person at the organizational meetings to insist “Yellow yests prohibited.” Registrations of participants surged after this kerfuffle. At the rally, LeBlanc spoke about the impact of the carbon tax on agriculture. Moe said, “One year ago, it was Saskatchewan alone. Now it is Saskatchewan, and New Brunswick, and Ontario, and Manitoba, and very shortly, maybe Alberta. That will be five provinces presenting 60 per cent of the population of our great nation, the population of Canada, that will oppose this carbon tax. And yesterday, I’m sure many of you saw the news, Manitoba has launched another legal challenge against this carbon tax. “Here’s what we need, in this province, to be successful. We need market access for our products. Two, we need the ability to get our goods to mar-

ket, by road, by rail, by pipeline. And three, we need a tax and regulatory structure that allows us to compete with our competitors around the world. We get those three things, and we are successful in this province. “What they are delivering is Bill C-48, the no more tankers bill. What they are delivering is Bill C-69, the no more pipelines bill. We have pipelines projects across this nation that are stalled. We have pipelines that are not getting built. And we have a federal government that, in addition to that, is delivering to use a federallyimposed carbon tax. “We look at these policies, and you just try to tell me that this is a federal government that supports working people in this country. You try to convince me that they care about what happens to you, what happens to your family, or what happens to your community, or what happens to your job in the industry you work in.” You can find extensive coverage of the rally and convoy throughout this edition.

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PIPELINE NEWS May 2019

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Southwest Saskatchewan leads in one of the lowest land sales in the last decade BUT IT WAS MARGINALLY BETTER THAN APRIL 2017 By Brian Zinchuk Regina – In one of the lowest land sales posted in the last decade, the April public offering of Saskatchewan’s Crown petroleum and natural gas rights held on April 9 raised a total of $1.5 million for the province. It was the first offering of the 2019-20 fiscal year. April has proven to be consistently poor for land sales returns since the oil downturn took place in late 2014. The April 2018 offering brought in $2.9 million, while April 2017 brought in just $1.3 million. April 2016 was $3.1 million, while April 2015 was $5.3 million. In contrast, the last year of the oil boom saw $47.9 million in land sales for the April 2014 sale. Crown land sales are held every two months in Saskatchewan. This land sale was focused on the Swift Current area, an exceptionally rare occurrence over at least the last decade. Typically southeast Saskatchewan leads the sales, but occasionally west central Saskatchewan, and very rarely, Lloydminster area have led the sale.

The lack of interest in southeast Saskatchewan has likely been impacted by the fact Crescent Point Energy Corp. has six substantial parcels of production and land up for sale in southeast Saskatchewan, most of which is east of Highway 47. The public offering on April 9 saw 38 leases purchased, totaling 5,596 hectares. The Swift Current area received the most attention, with 14 leases, totaling 2,106 hectares, being sold for $914,350. On both a fiscal and calendar year basis, Saskatchewan continues to post the highest average-per-hectare revenues among the western provinces, “A clear indicator of Saskatchewan’s continuing competitiveness and status as a jurisdiction of choice for the industry,” the release said. “Industry sources frequently identify Saskatchewan as having a very attractive operating environment and fiscal regime,” Energy and Resources Minister Bronwyn Eyre said. “We are also home to some of the best and most cost-effective

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Three leases posted in the Gull Lake area and prospective for oil in the Upper Shaunavon area were purchased for a total of $527,384. Millennium Land (444) Ltd., Millennium Land (555) Ltd. and Canada West Land Servic-

es Ltd. each purchased one of these leases. The highest bonus bid was $221,322 for 129 hectares located south of Gull Lake. This parcel, which also received the highest dollars per hectare at $1,711 per hectare, was

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PIPELINE NEWS May 2019

Enbridge Line 3 Replacement all but wrapped up in Canada, but delayed a year in the U.S. By Brian Zinchuk Calgary – Enbridge’s Line 3 Replacement project is all but wrapped up in Canada, but there’s still substantial work to be done in Minnesota. That’s according to an update on the project from Enbridge on April 22. In Canada, the Line 3 Replacement Program (L3RP) construction is on track for completion in May 2019. Spokesperson David Coll said in an email, “As of mid-April, we have successfully installed all of the pipe in the ground along the 1,070 km Canadian right of way.� This includes the installation of 55 new remotely operated valves which is essentially complete. Facilities

work is nearing completion, with 18 new pump stations and associated infrastructure; three new oil storage tanks at the Hardisty Terminal, with a total capacity of approximately 150,000 cubic metres. Reclamation is complete in three of the nine construction spreads; reclamation of the remaining six 2018 construction spreads is scheduled to begin in May. “We anticipate an inservice date for the Line 3 replacement pipeline (L3R) in the latter half of 2019,� he wrote. Due to permitting delays in Minnesota, the inservice date for the project, originally planned for 2019, has been pushed back a year. As for the U.S., Coll said, “In June 2018, the

Minnesota Public Utilities Commission (MPUC ) voted unanimously to approve the Certificate of Need and the preferred route for the Line 3 Replacement Project, with some modifications. In August Enbridge reached an agreement with the Fond du Lac Band of Lake Superior Chippewa, allowing L3RP to cross the reservation. In November the MPUC reaffirmed their unanimous approval of the Certificate of Need. In December the MPUC reaffirmed their approval of the Route Permit. Enbridge is now working on obtaining over 20 permits and approvals needed for the project.� He went on, “In early 2018, the Wisconsin portion of Line 3 replacement -- from the Minnesota bor-

EÄžÄ‚ĆŒ ƚŚĞ >Ä‚ĹśĹ?Ä?Ä‚Ŝŏ ƉƾžĆ‰Ĺ?ĹśĹ? Ć?ƚĂĆ&#x;ŽŜ ŽŜ Ć‰ĆŒĹ?ĹŻ ϭϾ͕ Ä‚ĹŻĹŻ ƚŚĂƚ ĆŒÄžÄ‚ĹŻĹŻÇ‡ ĆŒÄžĹľÄ‚Ĺ?ĹśĆ? ŽŜ ƚŚĞ ĹśÄ?ĆŒĹ?ÄšĹ?Äž >Ĺ?ŜĞ ĎŻ ZĞƉůĂÄ?ĞžĞŜƚ WĆŒĹ˝Ĺ?ĆŒÄ‚Ĺľ Ĺ?Ć? ƉƾƍŜĹ? ƚŚĞ ÄšĹ?ĆŒĆš Ä?Ä‚Ä?ĹŹÍ˜ WŚŽƚŽ Ä?LJ ĆŒĹ?Ä‚Ĺś Ĺ?ĹśÄ?Ĺšƾŏ der to Enbridge’s Superior Terminal -- was completed. “On March 1, Enbridge received a firm schedule from the Walz administration providing specific timelines for the remaining state permits need-

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PIPELINE NEWS May 2019

THANK YOU

to the following businesses & organizations that came together for the Regina Rally Against the

Carbon Tax

- Support The Fight

Against The Carbon - Build The - Kill Bill C-69 - Kill Bill C-48

Tax

REGINA POLICE SERVICE • WEYBURN CITY POLICE ESTEVAN CITY POLICE • RCMP COMBINED TRAFFIC SERVICES SASKATCHEWAN CITY OF REGINA • CARA DAWN TRANSPORT LTD. WF BOTKIN CONSTRUCTION LTD. SASKATCHEWAN HEAVY CONSTRUCTION ASSOCIATION RM OF ESTEVAN #5 • RM OF WEYBURN #67 RM OF EDENWOLD #158 • RM OF SHERWOOD #159 PRO TOUCH SIGNS – WEYBURN • BK CREATIONS – ESTEVAN DYNAMIC SIGNS – ESTEVAN • FUTURE SIGNS - ESTEVAN DEL’S COMMERCIAL PRINTING – ESTEVAN NUTRIEN AG SOLUTIONS WALLNUTS EXPRESSIVE CATERING – REGINA WELSH KITCHEN – WEYBURN HUB INTERNATIONAL CANADA WEST ULC ALL THE PARTICIPANTS THAT CAME OUT IN SUPPORT

Together we took a stand, and all of Canada heard us.

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PIPELINE NEWS May 2019

Moe stood up against the carbon tax, and now the convoy and rally was standing up with him By Brian Zinchuk Regina – Many of the people who took part in the Regina Rally for Resources said they wanted to support Premier Scott Moe in his fight against the federallyimposed carbon tax. On April 4, at the culmination of the massive convoy and following rally, Moe professed his support for them. The premier, who, in his

previous portfolio as Minister of the Environment, had walked out of a ministers’ meeting where the federal carbon tax was announced, was in his element, with approximately 1,500 people present. The room’s partitions were all opened up, and facility workers were sending additional attendees to a room across the hall to watch on a video screen. It was, quite lit-

erally, standing room only. Congratulating the participants on the size of the convoy, Moe started by saying, “Let me say to the rest of Canada, welcome to the silent majority!” “This convoy, your convoy, has converged here in our province’s capital city, but it came from all across our great province, from almost every sector in our economy.

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We have trucks here from the energy sector. We have trucks here from agriculture, from mining, from manufacturing. They’re all here from all parts of our economy today and the fact that you are here tells me something about your values. “It tells me something about your character. It tells me something about your families, your coworkers, and you communities you live in. It tells me you care about the future of this province and you care about the future of this great nation we all live in,” Moe said. “Today, you, we, all of us together, we’re sending a message from coast to coast to coast that is as clear as prairie sky, and it’s a message to the prime minister of this nation. It’s time we came together to defend our world class resource industries, the industries that create wealth, they create hoe, and they create opportunity,

Premier ^ĐŽƩ DŽĞ was the headline speaker at the Regina Rally Against the Carbon Tax on April 4. Photos by Brian Zinchuk all across Canada. “It’s time for us to work together to bring down the barriers to responsible resource development and the thousands of jobs that we all know that come with that responsible resource development. It’s time for us to roll back that destructive

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carbon tax that will do nothing to reduce greenhouse gas emissions. A carbon tax that will do nothing but kill jobs and drive investment out of our province and out of our communities,” he said, saying that it’s time to get Saskatchewan, and Ź 3DJH $

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DĂŶŝƚŽďĂ ŝƐ ŶŽǁ ĂŶ ĂůůLJ ŝŶ ĐĂƌďŽŶ ƚĂdž ĮŐŚƚ Ż 3DJH $ Canada, working again. He pointed out that for the longest time, “We were the only rig on the road. Saskatchewan was the only province that had stepped out and opposing this federal carbon tax.” He offered thanks for all the support received, now, and for Premier Brad Wall before him. “One year ago, it was Saskatchewan alone. Now it is Saskatchewan, and New Brunswick, and Ontario, and Manitoba, and very shortly, maybe Alberta. That will be five provinces presenting 60 per cent of the population of our great nation, the population of Canada, that will oppose this carbon tax. And yesterday, I’m sure many of you saw the news, Manitoba has launched another legal challenge against this carbon tax.” He welcomed Manitoba as an ally. “Here’s what we need, in this province, to be successful. We need market access for our products. Two, we need the ability to get our goods to market, by road, by rail, by pipeline. And three, we need a tax and regulatory structure that allows us to com-

pete with our competitors around the world. We get those three things, and we are successful in this province.” Moe said the Liberal government in Ottawa has not been helpful on any of those three points. “What they are delivering is Bill C-48, the no more tankers bill. What they are delivering is Bill C-69, the no more pipelines bill. We have pipelines projects across this nation that are stalled. We have pipelines that are not getting built. And we have a federal government that, in addition to that, is delivering to use a federallyimposed carbon tax. “We look at these policies, and you just try to tell me that this is a federal government that supports working people in this country. You try to convince me that they care about what happens to you, what happens to your family, or what happens to your community, or what happens to your job in the industry you work in.” He pointed out that NDP Leader Ryan Meili was not present. “As you heard this past week, the NDP leader decided not to come today because he

There was a lot of support for Premier ^ĐŽƩ DŽĞ͛Ɛ ĮŐŚƚ ĂŐĂŝŶƐƚ ƚŚĞ ĐĂƌďŽŶ ƚĂdž͘ thinks this rally is motivated by anti-immigrant sentiments. Of course, we all know that’s nonsense. This rally is motivated by policy decisions that have been made by our federal government that restrict the growth of our province, that restrict the growth of our economy, that restrict the growth in our jobs in our communities that we all live in, and they restrict the growth of our population in those communities. “The Saskatchewan that we know and we love, in the communities across our province, we have welcomed thousands of newcomers to our communities, to live, to work, to raise their families.” He pointed out 165,000 people came to Saskatchewan, of which 123,000 came from 180 countries to settle in over 430 communities. “They moved here because of the opportunity, because

there’s hope, and because there’s a job. They moved here, to build a career, to create a business or raise a family, to contribute to this province that we love. And we are grateful that they chose this province of Saskatchewan. “But ladies and gentlemen, as we know, none of this is why the NDP leader is not attending here today. I think we can all agree on this. The real reason that Mr. Meili is not here today is that he actually supports a Trudeau carbon tax. The real reason he is not here today is he actually opposes the construction of pipelines. And the real reason he’s not here today is because he has absolutely no interest in hearing from anyone, meaning you, that doesn’t share his point of you. It’s pretty clear to me the NDP does not support you. And why on earth would any of you support them?” Moe said.

“Meanwhile in Ottawa we have a federal government that is displaying its own kind of contempt. If the federal government actually generally wanted, and was concerned, and wanted to support our workers in Saskatchewan, in Western Canada and across the nation, it would kill Bill C-69 immediately. There’s no better example, to my knowledge, of any anti-worker legislation in this country than that bill, Bill C-69, the ‘no more pipelines bill,’ as it’s been dubbed. The no more potash mine bill, I would add to that. The no more uranium mine bill, I would add to that. The no more industry in Saskatchewan bill, I would add to that. “In Canada, we already have one of most stringent environmental review processes in the world. This is a process we can be so proud of. Billions of dollars are spent by private

industry, surprise, each and every year, ensuring that our projects are in compliance with environmental laws. You tell me this, what country in the world has a more stringent environmental process? “Do the countries that deliver oil by tanker to Eastern Canada, to Eastern Canadian ports, have a stronger law than Western Canada? I think not,” Moe said. “Does Saudi Arabia, Nigeria, Venezuela, Iraq, do they care about the environment more than we do in Western Canada? My friends, we don’t need a major overhaul of our Canadian environmental process. What we need is an environmental review process that works for you and all Canadians. What we are getting, is Bill C-69, which essentially, by the way, killed Energy East. “Now well all know Ź 3DJH $

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Do OPEC countries care about the environment more than we do in Western Canada? Ż 3DJH $ Energy East, the value to use in Saskatchewan, but it’s also a nation-building project, in every respect. It would create jobs in almost every province in the nation of Canada. A project that would displace oil coming from these countries I mentioned that have such lower environmental rigour laws, and the liberal government said no, no to Energy East. Just like they said no to the Northern Gateway pipeline, with Bill C-48, the tanker ban. “Here’s the consequence of continuing to say no. When you say no

often enough, people start to get the message. Investors get the message. They understand they just aren’t welcome. And as we know, in our industries, capital is very mobile, and it’s moving south in many cases. We have billions of dollars now that is moving into North Dakota, it’s moving into Texas and it’s moving into New Mexico. “Here in Canada, we have the third largest proven oil reserves in the world. It’s clean, it’s sustainably produced energy, yet we don’t have, we don’t get world prices for our energy because we just simply can’t

build a pipeline across this great nation of ours. “We lose billions of dollars, each and every year, and I would say not only in this province, but everyone in Canada is shortchanged by that fact. I say everyone in Canada because the resource sector in this country that we participate in pays billions of dollars in royalties and taxes. Those dollars support the quality of life that we have in this province and support the quality of life that we have across the nation.” Moe explained, “Those dollars build hospitals. They build highways. They

It was standing room only at the Regina Rally Against the Carbon Tax on April 4

build schools. They build long-term care centres for our families. These are the infrastructure and services that these resource industries support, in Saskatchewan and across Canada. And today, because of the challenges that we have, it is so much more difficult for us to contribute to the nation. And we are a proud contributor. But through these investments, we contribute. Through equalization, we contribute. We are

contributing less, because our resource sector, and as a matter-of-fact, all of our sectors, are under attack. “They’re under attack from a federal government that has introduced Bill C-69, Bill C-48. We have tougher federal methane regulations that we’re working towards. And now, ladies and gentlemen, as of last week we have a carbon tax in our province. “A carbon tax that was described by many of your

MLA, the member for Weyburn, our environment minister, the Hon. Dustin Duncan, and I quote, ‘A Justin Trudeau, Ralph Goodale, Liberal Party of Canada, job-killing, soulsucking, unconstitutional, supported by the Saskatchewan NDP carbon tax!” he said to hoots and applause. “Rather catchy, isn’t it it? Rather accurate as well.” Here, Moe touched on something that Meili had Ź 3DJH $

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Canada is shortchanged billions per year Ż 3DJH $ called upon him to say, regarding anthropogenic (human-induced) climate change. Moe went on, “But don’t get me wrong. In Saskatchewan, we accept that climate change is happening. We even accept that humans are contributing to that. What we don’t accept is a federal government imposing that on our industries, our provinces, and our families across the nation. In particular, this province, which I have the honour of representing. “The federal government’s own research says this isn’t going to work in the province of Saskatchewan. And that shouldn’t be a surprise, because it hasn’t actually worked anywhere else that it’s been introduced. It certainly hasn’t worked in British Columbia, where they’ve had it over a decade, where emissions continue to rise. “A carbon tax, quite simply, is the wrong policy for a jurisdiction like ours, with an export-orientated, energy-intensive economy that we participate in. It’s the wrong policy, quite frankly, for Canada. “A one-size fits-all de-

structive carbon tax hurts workers, it hurts businesses and it hurts families, from coast to coast to coast in this nation. But there’s good news in all of this. There’s a better way. There’s a better path to follow.” He spoke of the Saskatchewan government’s “Prairie Resilience” climate change strategy. He characterized it as “a plan that recognizes the reality of our province, and recognizes the reality of the industries that operate in our province and it actually reduces emissions in our province, unlike the carbon tax. The difference between the two is that our Prairie Resilience strategy was actually designed alongside industry. We worked with industry to achieve what is possible. “We want to continue to encourage our Saskatchewan industries to find innovative solutions, and there’s a key word, innovation, to ensure we continue to do better for that next generation. We all have kids, and we all care. “For example, our SaskPower Company is expanding their renewable capacity. We’re moving to 50 per cent renewables in

our generating capacity by the year 2030. We’ve invested more than a billion dollars in a world-leading carbon capture project at Boundary Dam 3, near Estevan. “And Saskatchewan actually, and I’ve participated in these conversations, yes, is we are a global leader, when it comes to carbon capture and storage.” Moe said, “Here’s the opportunity, that we have, in the world, moving forward, with carbon capture. In the last five years alone, China has added 191,000 megawatts of coal-fired power generation – just coal-fired. That’s about 150 per cent of what Canada does each and every year, total. All new. All coal. And that’s just in China. “Today there are 1,600 new coal-fired power plants being built, or planned, around the world. Imagine the possibility for emissions reductions with innovations like carbon capture and storage. “The work we have done in Estevan, at Boundary Dam 3, and I saw ‘we’ collectively, as a province, will have more impact on greenhouse gas emissions

It had been a rainy night, but the weather improved as the convoy started rolling. Here were some of the lead trucks forming up in Estevan. Photo by Katrina Zinchuk than a federal carbon tax can ever actually hope. “The innovation in carbon capture and storage needs to be recognized. The federal government should also recognize the contribution of clean, sustainable, nuclear power industry around the world that is supplied by Saskatchewan uranium. It should acknowledge the work, the great work, that is done in our agriculture industry. “The role our farmers and ranchers, our researchers and equipment manufacturers have played in re-

ducing global emissions is tremendously valuable, and not talked about enough. “Not only are we carbon neutral in our crop agriculture in this province, no one else in the world can actually make that statement but this province. “We manufacture and export air drills now all around the world. I think of Bourgault, I think of Seedhawk, Seedmaster. I think of Morris. I think of Pillar Laser and I probably missed some but there’s so much more. We export those to places like Rus-

sia and Kazakhstan and the United States, where they’re using that technology to actually using that technology, that innovation, that was actually developed by you in this room, and us in this province, to reduced carbon emissions in those far away places. “And of course, we use those air drills here in Saskatchewan. We’re going to use a bunch of them here in just a week or two. Zerotill, combined with a huge increase in pulse crops, has Ź 3DJH $

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tÄžÎ–ĆŒÄž ŚĂǀĹ?ĹśĹ? ƚŚĞ Ç ĆŒŽŜĹ? Ä?ŽŜÇ€ÄžĆŒĆ?Ä‚Ć&#x;ŽŜ Ĺť 3DJH $ actually help turn Saskatchewan soils into an enormous carbon sink over the course of just the last 20 or 25 years.â€? “New technology continues to cut our greenhouse gas emissions by many millions of tonnes each year. For example, also in agriculture, many of you in this room also

drove a diesel truck to get here. The tractors, trucks that we drive today, as we all know, are so much more efficient as they were a few years ago, and this needs to be acknowledged, as well, moving forward, by our federal government.� Moe concluded, “Let me close with this: We continue, in this nation, to have the wrong conversation. We

need to change the conversation. We need to shift our focus away from an ineffective carbon tax towards innovation and technology and what research and science can do for us. “In Saskatchewan, we’ve already done that. We’re already making a difference in all of these areas, in all of our industries. In Saskatchewan we’re mak-

ing a difference in in our fields. We’re making a difference in our research labs. We’re making a difference at the bottom of our mine shafts, at the top of our oil derricks, and we’re making a difference on the highway, each and every time we drive one of those trucks down them. Saskatchewan is making a difference across this nation by lead-

ing the opposition to a federal carbon tax. “And very soon, we are going to hear about the difference we made in a courtroom. And after we hear from that courtroom, we will something totally different in Ottawa. We will look for a government that supports Saskatchewan energy. We will look for a government that supports

our Saskatchewan agriculture industry. We will look for a government that supports our Saskatchewan mining and manufacturing industries. A government whose first priority, whose singular objective, is to get our province and our nation working again. We look forward to that day. Let me tell you, it can’t come soon enough.�

The glue that kept the convoy together AGRICULTURE OUTPACED OIL 60/40 FOR CONVOY REGISTRATIONS By Brian Zinchuk Estevan – While she’ll likely refuse to take credit for it, Trisha Meshke definitely deserves that credit as the unsung hero for being the glue that kept the organization of the Regina Rally Against the Carbon Tax convoy together. That’s because it was her phone number from the get-go that was receiving all the phone calls and texts for registrations coming in. That phone, as well as several others, were all ringing off the hook on April 3, the day before the convoy was about to roll. Talking to her in her office at KRJ Custom Fabricating at 4:20 p.m., Pipeline News asked her what the day has been like. “Insane!� was the response. “Today has been insane. It’s non-stop. I have two lines on the office phone. I have my cellphone. I have Ken’s phone, and they’re ringing

off the hook. Text messages, emails, calls. It’s not stopping. “Yesterday was actually the calm before the storm. I had time to get caught up with all the registrations. Today, it is overly busy, which is a good thing – see there’s another call right now. And there’s a call on another line.� She had to pause for a minute as more calls came in. She dutifully entered them into her spreadsheet. By that point, the running total was 645. It would grow to nearly 700 the next day. Asked how many calls came in on April 3, she said, “Over 100. Over 100, for sure. If they’re not registering, they’re calling, asking questions, and I’m referring them back to our Twitter and Facebook accounts.� She lifted up her phone, and it indicated 13 texts of unknown names that she had not been able to respond to yet. “They

started as early as 7:30 this morning. I’ve been calling them back. These are new ones,� Meshke said. “As recent as 4:22, 3:47, 3:29.� “I’ve had calls at six in the morning, saying, ‘Well, I’m just wondering what the plan is. I might not be able to make it. I’m calving,’ Then why are you calling me at six in the morning if you’re calving?� Asked what the mix was of agriculture versus oil participation, she said, “I think it’s higher agriculture.� “I think it’s been higher agriculture all along. I was keeping track at the beginning, but it got too busy. I would say 60/40,� Meshke said. Other organizers credited one of the big stories of the week for boosting late registrations. NDP Leader Ryan Meili took a run at rally organizer Jason LeBlanc in question period on April 1, saying he was associated with the yellow vest move-

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a lot of other farmers, as LeBlanc is a well-known farmer and auctioneer. A column in Pipeline News in response had 12,700 views on April 2, and CJME/ CKOM radio host John Gormley rode that issue all week long, getting LeBlanc on the air as the convoy was rolling into the city. Several organizers told Pipeline News that was the best publicity, and it was free. (LeBlanc’s ovation at the rally was louder that that for the premier). Meili’s assertions that

this was a yellow vest event without the yellow vests got under Meshke’s skin. She said she had to get away from Twitter and Facebook. “I can’t be a keyboard warrior right now,� she noted, as she was focused on the registrations. At the rally, Meshke reported that her phone continued to ring that morning as the convoy was coming together. People still wanted to register. At that point, she told them just to show up and join at the end.

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ŽŵƉĞƟƟǀĞŶĞƐƐ ŝƐ Ă ƉƌŽǀŝŶĐŝĂů ŝƐƐƵĞ͕ ŶŽƚ ĨĞĚĞƌĂů͕ ĂŶĚ ^ĂƐŬĂƚĐŚĞǁĂŶ ŚĂƐ ŝƐƐƵĞƐ ƚŚĞƌĞ By Brian Zinchuk Estevan – For Warren Waldegger, president and CEO of Estevan-based junior oil producer Fire Sky Energy, the provincial government’s steering the competitiveness issue to the federal government isn’t the whole truth. “They’re the regulator,” he said on April 16. “If we’re uncompetitive, it’s typically on the Saskatchewan government, more than the feds.” And on that day, several other junior oil producers echoed concerns about how competitive Saskatchewan is now as an oil producing jurisdiction, given the Donald Trump administration’s large corporate tax breaks and the anticipation of tax breaks in Alberta from the new Jason Kenney United Conservative Party government. It was Alberta’s election day, and indeed, Kenney won, promising to dramatically reduce red tape and cut business taxes. Waldegger noted that while Saskatchewan scrambled to move towards its own climate action plan, oil and gas ended up being the poster child for that plan. “Methane reducing changes will have a serious implication on investment and activity in our province, and we really didn’t solve anything. We’re still being

subject to the carbon tax, and we have both of these things on our plate,” he said. Waldegger felt the industry consultation on recent methane emission reduction regulations were pretty weak. “Most of our concerns were easily discarded,” he said. One fundamental issue he is concerned about is the lack of infrastructure to tie into gathering systems, both for oil and for natural gas. He said it’s very tough to justify connections into oil or gas infrastructure, from an economics point of view. Part of that has to do with geology. While he noted some people might think of southeast Saskatchewan as broad resource plays like the Bakken, in fact the “meat and potatoes” is the Mississippian conventional production made up of small pools. Once five or six wells are drilled in that pool to delineate it, that pool is already in decline for the next half dozen wells which will be drilled over the life of the pool. These small pools have a limited amount of gas, which in turn makes it uneconomic to tie into gas lines. “These are very distinct, small pools with limited amount of gas. Gas is the byproduct. It’s not the product we’re after.” Jon Hromek, who is

the president and CEO of Adonai Resources II Corporation, pointed out that Alberta has much better geology than Saskatchewan, but Saskatchewan used to have a better regulatory environment. Waldegger concurs, pointing out that in Alberta, there’s much better gas gathering infrastructure than in Saskatchewan. It also typically has more targets to produce from. The new regulations covers basically every source of emissions, from tanks and valves to flares. But in addressing these emissions, Waldegger notes some changes don’t make a lot of sense. For instance, by running valves off of field gas, he said, “There’s no more efficient system to do that with. You’ve already got the energy source captured on location, in a remote location, typically. So it makes no sense to try run those off a compressor, when we already have gas that is compressed in our vessels. The things we’re trying to do, we’re going backwards. We’re going to ignore the impacts of the construction of that compressor, and running that compressor off electricity, instead of using the source of energy we already have on location.” He noted these are very minute emissions sources.

“If you look at the last decade, it’s building one thing on top of another, onto the industry,” he said, pointing to Directive S-10, burner regulations, and now these new methane regulations. “The only thing they’ve really kept consistent is the royalties, and that was from the previous regime.” Asked if it’s death by 1,000 cuts, he replied, “It’s feeling that way.” “We’re also looking at new pipeline licensing, a new regulation. And they’re telling us, it’s not cheap. New estimates for building this pipeline module in IRIS is very high, and industry is bearing 90 per cent of that through the levy.” That levy was introduced by this provincial government, meaning that industry pays for growth in the bureaucracy. Would it all be solved by $100 oil? Waldegger doesn’t think so, saying, “There’s been major changes to the financial backbone of our industry, and that goes back to dissolving the royalty trusts, way back then.” Those royalty trusts, which were dissolved by the federal government, pro-

dŚĞ ĐŽŶƟŶƵĂů ŝŵƉŽƐŝƟŽŶ ŽĨ ŶĞǁ ƌĞŐƵůĂƟŽŶƐ͕ ůŝŬĞ ǀĞŶƟŶŐ ĂŶĚ ŇĂƌŝŶŐ ƌĞŐƐ Ă ĨĞǁ LJĞĂƌƐ ĂŐŽ͕ ĂŶĚ ŝŵƉĞŶĚŝŶŐ ŵĞƚŚĂŶĞ ƌĞŐƵůĂƟŽŶƐ ŶŽǁ͕ ĂƌĞ ŚĂǀŝŶŐ ĂŶ ĞīĞĐƚ͕ ĂĐĐŽƌĚŝŶŐ ƚŽ &ŝƌĞ ^ŬLJ ŶĞƌŐLJ͘ &ŝůĞ ƉŚŽƚŽ vided a buyer, and an exit strategy, for small producers. He said in talking to the mergers and acquisition people, there’s basically 50,000 to 60,000 barrels of oil per day production for sale in southeast Saskatchewan and Manitoba with no apparent buyer. That includes companies going public. “There’s no obvious liquidity market,” he said. The whole plan for a company like Fire Sky is to

provide investors with liquidity. “I would say we have serious concerns over the competitiveness of our industry, and the trend. The trend is not good. There’s a lot of additional costs and manpower to deal with new processes and procedures. We can’t keep looking at the federal government and saying they’re the problem, yet we keep creating new processes in our own province,” Waldegger concluded.

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PIPELINE NEWS May 2019

dƌƵŵƉ ŐƌĂŶƚƐ ŶĞǁ WƌĞƐŝĚĞŶƟĂů WĞƌŵŝƚ ƚŽ <ĞLJƐƚŽŶĞ y> By Brian Zinchuk Washington, Calgary – How do you do an end run around courts that have blocked your Presidential Permit for a new pipeline? If you’re President Donald Trump, you issue a new one and revoke the old one. On March 29, Trump granted a new Presidential Permit for the construction of the Keystone XL pipeline. Last November the previous permit had been quashed by a Montana federal court. Judge Brian Morris ruled the project required further examination and ordered a new environmental review. The judgement considered everything from bats and whooping cranes to pipeline demand. His ruling found that the State Department fell short of a “hard look” on several items and it must do supplementary work to comply with its obligations under the National Environmental Policy Act. These areas include looking at the effects of current oil prices on the viability of the pipeline, the cumulative affects of the Alberta Clipper ex-

pansion (an Enbridge project) and Keystone, a survey of potential cultural resources on 1,038 acres, and updating modelling of potential oil spills and recommended mitigation measures. TransCanada tried in recent weeks to get the court to allow it to get some preparatory work done this spring, only to have that request denied. The Montana ruling came last year as TransCanada had been gearing up for full-on construction of the pipeline in the second half of 2019 after a decade of delay. In July 2018 the corporation started inspecting and, as needed, refurbishing its massive stockpiles of pipe that have been sitting since 2011, in preparation for usage in the project. Keystone XL had been all but dead when then-President Barrack Obama denied a Presidential Permit in 2015. That changed with the election of President Donald Trump in November 2016. In one of his first acts after being sworn in, Trump invited TransCanada to resubmit its application, which he then approved a few

months later in the spring of 2017 (referred to in the case as a record of decision, or ROD). His reversal of the 2015 decision by former president Barack Obama on the pipeline, in particular with regards to the consideration of climate change as a reason to kill the project, factored into the judgement, without directly referring to either president. President Trump told reporters on Nov. 9, “It was a political decision made by a judge. I think it’s a disgrace — 48,000 jobs. I approved it. It’s ready to start.” This new permit may seek to wipe the judicial slate clean. It states, “This permit supersedes the Presidential permit issued to the permittee, dated March 23, 2017. For the avoidance of doubt, I hereby revoke that March 23, 2017, permit. Furthermore, this permit grants the permission described in the previous paragraph and revokes the March 23, 2017, permit notwithstanding Executive Order 13337 of April 30, 2004 (Issuance of Permits With Respect to Certain Energy-Related Facilities and Land

Transportation Crossings on the International Boundaries of the United States) and the Presidential Memorandum of

January 24, 2017 (Presidential Memorandum Regarding Construction of the Keystone XL Pipeline).”

While the State Department usually issues these permits, with the president signing off on Ź 3DJH $

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PIPELINE NEWS May 2019

A19

/ĆŒŽŜĆ?Ĺ?ĚĞ ĹśÄžĆŒĹ?LJ Ĺ?Ć? ĆšĆŒÇ‡Ĺ?ĹśĹ? ƚŽ ÄŽĹ?ĆľĆŒÄž ŽƾĆš ƚŚĞ Ä?Ĺ˝Ć?Ćš ŽĨ ƚŚĞ Ä?Ä‚ĆŒÄ?ŽŜ ƚĂdž͕ ĂŜĚ Ĺ?ƚ͛Ć? Ĺ?Ĺ˝Ĺ?ĹśĹ? ƚŽ Ä?Äž ĹšĹ?Ĺ?Ĺš ΨϹϏÍ•ĎŹĎŹĎŹ z Z /E d, &/Z^d z ZÍ• E Z/^/E' s Zz z Z &d Z d, d By Brian Zinchuk Estevan – The day before the big convoy leading up to the Regina Rally Against the Carbon Tax, Chad Himmelspeck and Danny Blackburn were in their office, plotting carbon tax strategy while one of their workers took a pressure washer to the semi that would be taking part. The owners of Ironside Energy Services Ltd. of Estevan had very good reason to be part of the protest, as those carbon tax numbers tallied up. Asked why they were doing it, Himmelspeck said it was “To draw attention to the cause, I think people really need to start hearing us out here in the West, the way the oilfield is starting to take shape here.â€? As for the carbon tax, that was precisely what they were working on. Blackburn said, “That’s what we’re trying to figure out how we’re going to charge this out, because guys we’re talking to don’t want to see

it on an invoice.� Asked why not, he replied, “Not sure. They just don’t want to see it, so it’s going to have to be incorporated differently.� Himmelspeck said, “It just puts us in a real tough situation. Obviously, from the oil company’s perspective, they want things as cheap as they can so they can still make it profitable.� And it two years, the carbon tax will double, from $20 per tonne to $30 per tonne the next year and $40 per tonne the following year. It go up to $50 per tonne the year after that. As they’ve grown as a company, their fuel bill went from $6,000 a month to hundreds of thousands of dollars per month. “And that’s probably small potatoes compared to some of these other operations, so that’s going to have a huge impact on our business,� Himmelspeck said. He’s going to Calgary the following week, and ex-

pects it to be a discussion point. They don’t qualify for a rebate, either. “Off the top of my head, we’re looking at $50,000 a year, based on a full calendar year,� Himmelspeck said. And with the escalation, it will be double that in two years. The Department of Finance Canada website (https://www.fin.gc.ca/n18/ data/18-097_1-eng.asp) lists light fuel oil (diesel) at 5.37 cents per litre this year, and then 8.05 cents in April 2020, 10.73 cents per litre in April 2021 and 13.41 centres per litre in April 2022. Ironside had as many as 26 working this past winter. They try to keep most of them working through spring breakup doing shop work and maintenance, as well as working on their crew trucks. As of early April, they were at 16 staff members. Their fleet includes eight dozers, three excavators, three crew trucks and a grader.

Ironside Energy Services’ Danny BlackburnÍ• ĹŻÄžĹŒÍ• ĂŜĚ Chad Himmelspeck ŚĂǀĞ Ä?ĞĞŜ Ä?ĆŒƾŜÄ?ĹšĹ?ĹśĹ? ƚŚĞ ŜƾžÄ?ÄžĆŒĆ? ŽŜ ƚŚĞ Ä?Ä‚ĆŒÄ?ŽŜ ƚĂdž͕ ĂŜĚ ÄžĆ?Ć&#x;žĂƚĞ ƚŚĞ ÄŽĆŒĆ?Ćš Ĩƾůů Ç‡ÄžÄ‚ĆŒ Ç Ĺ?ĹŻĹŻ Ä?Ĺ˝Ć?Ćš ƚŚĞĹ?ĆŒ Ä?ŽžĆ‰Ä‚ŜLJ ΨϹϏÍ•ĎŹĎŹĎŹÍ˜ dÇ Ĺ˝ Ç‡ÄžÄ‚ĆŒĆ? ĹŻÄ‚ĆšÄžĆŒÍ• Ĺ?Ćš Ç Ĺ?ĹŻĹŻ Ä?Äž ÄšŽƾÄ?ĹŻÄžÍ˜ dŚĞ Ć?ĞžĹ? Ä?ĞŚĹ?ŜĚ ƚŚĞž Ç Ä‚Ć? Ç Ä‚Ć?ŚĞĚ ƾƉ ŽŜ Ć‰ĆŒĹ?ĹŻ ĎŻ ƚŽ Ä?Äž Ĺ?Ĺś ƚŚĞ Ä?ŽŜǀŽLJ Ć‰ĆŒĹ˝ĆšÄžĆ?Ć&#x;ĹśĹ? ƚŚĂƚ Ä?Ä‚ĆŒÄ?ŽŜ ƚĂdž ƚŚĞ ŜĞdžƚ ĚĂLJ͘ WŚŽƚŽ Ä?LJ ĆŒĹ?Ä‚Ĺś Ĺ?ĹśÄ?Ĺšƾŏ

WĆŒÄžĆ?Ĺ?ĚĞŜƚ Ć?ĆľĆ‰ÄžĆŒÄ?ĞĚĞĆ? ^ƚĂƚĞ ÄžĆ‰Ä‚ĆŒĆšĹľÄžĹśĆšÍ• Ĺ?ĆŒÄ‚ĹśĆšĆ? Ć‰ÄžĆŒĹľĹ?Ćš Ĺť 3DJH $ the, Bloomberg reported, “But Trump still retains the authority to issue presidential permits himself, said the person, who asked for anonymity to discuss internal deliberations. And because Trump’s permit is not subject to environmental review requirements in federal law, it effectively restarts the process and undercuts the Montana lawsuit.â€? In a press release on March 29, TransCanada said it thanked President Donald Trump for affirming his support for the Keystone XL pipeline project by issuing a new Presidential Permit. The release said, “The president’s action today clarifies the national importance of Keystone XL and aims

to bring more than 10 years of environmental review to closure.� “President Trump has been clear that he wants to create jobs and advance U.S. energy security and the Keystone XL pipeline does both of those things,� said Russ Girling, TransCanada’s president and chief executive officer. “We thank President Trump for his leadership and steadfast support to enable the advancement of this critical energy infrastructure project for North America.� “The magnitude of the work on this project has been extensive. The Keystone XL pipeline has been studied more than any other pipeline in history and the environmental reviews are clear – the project can be built and operated in an environmentally sustainable

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and responsible way,� added Girling. The 36-inch pipeline, with a capacity of 830,000 bpd, is intended to transport primarily Canadian oil from the Western Canadian pipeline hub of Hardisty, Alta, to Steele City, Nebraska. A

lateral pipeline, called the Bakken Marketlink, would contribute up to 100,000 bpd from the Bakken oilfield of North Dakota, joining the mainline at Baker, Mont. The southern portion of the Keystone XL pipeline, which runs to the Gulf

Coast, was completed and put into operation several years ago. “We welcome the decision by the President to greenlight the Keystone XL project in the U.S.� said Bronwyn Eyre, Saskatchewan’s Minister of Energy

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PIPELINE NEWS May 2019

^Ä‚Ć?ĹŹÄ‚ĆšÄ?ĹšÄžÇ Ä‚ĹśÍ›Ć? ÄžÇ€ÄžĆŒͲĹ?ĹśÄ?ĆŒÄžÄ‚Ć?Ĺ?ĹśĹ? ĆŒÄžĹ?ƾůÄ‚Ć&#x;ŽŜĆ? Ä‚ĆŒÄž žĂŏĹ?ĹśĹ? ƚŚĹ?Ć? Ć‰ĆŒĹ˝Ç€Ĺ?ĹśÄ?Äž ƾŜÄ?ŽžĆ‰ÄžĆ&#x;Ć&#x;ǀĞ͗ ,ĆŒŽžÄžĹŹ By Brian Zinchuk Regina – On April 11, the province put out its bi-monthly press release on Crown land sales. This month, as Pipeline News pointed out in its story, was one of the lowest Crown land sales in the last decade, coming in at $1.5 million. That was consistent with a pattern of low April sales since 2015, with sales of $5.3 million, $3.1 million, $1.3 million and $2.9 million, from 2015 to 2018. In 2014, April brought in $47.9 million. In the government press release, Minister of Energy and Resources Bronwyn Eyre said, “Industry sources frequently identify Saskatchewan as having a very attractive operating environment and fiscal regime. “We are also home to some of the best and most cost-effective conventional oil and gas development opportunities you will find anywhere. It’s not surprising that when we talk to audiences around the world about the invest-

ment opportunities in Saskatchewan, we are often talking about oil and gas.� Jon Hromek, president and CEO of Reginabased Adonai Resources II doesn’t see things quite so rosy. Upon seeing the Pipeline News story on our web page, he sent us the following email: “The latest research from the Frasier Institute shows that Saskatchewan is NOT competitive with respect to oil and gas investment in North America. In addition, C.D. Howe Institute in early 2018 indicated that Saskatchewan was already behind Alberta and, of course, the U.S. with respect to competitiveness. And this research doesn’t take into consideration the never ending regulatory burdens that are constantly being added to us here in Saskatchewan oil and gas.� Pipeline News spoke to Hromek about his concerns on April 16. Adonai II was formed in 2017, and has production in the Carnduff area. The tightly-held company

has plans to drill 10 to 12 wells this year. The first of those two reports is the C.D. Howe Institute’s Death by a Thousand Cuts? Western Canada’s Oil and Natural Gas Policy Competitiveness Scorecard, written by Benjamin Dachis and released Feb. 1, 2018. Effective Tax and Royalty Rates on new Investment in Oil and Gas after Canadian and American Tax Reform, by Philip Bazel and Jack M. Mintz, released in the spring of 2019. The Mintz name is key, as the Saskatchewan Party government for years has quoted him and his studies in justifying many of their economic policies. Hromek and his team are one of the few out there these days following the junior oil producer business model, one that, for the last several years, is struggling. “At the end of the day, you can’t bank on more than $40,000 to $50,000 per flowing bar-

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Flowlines will soon require licensing, yet another headache for oil producers. File photo rel, and maybe $60,000 if you’ve got a lot of really good finds and a lot of undeveloped locations that are very provable and very solid. But it’s getting harder and harder to find plays, and then you tend to be spread out across the southeast, and lose your operating efficiencies. The regulations keep adding and adding and adding, and costs keep going up, so your cost of production goes up. “Right now, it’s not that it’s the price that’s really hurting us. The WTI is pretty solid. Our wellheads are very solid. It’s the compliance costs that

have just gone through the roof. That used to be the big advantage to Saskatchewan, especially the southeast. Because Alberta has such better reservoirs, so you have much lower geological risk in Alberta, but you’ve got a pretty high regulatory cost. It’s okay to have one or the other. “But here, now, you’ve got a high geological risk and a high regulatory compliance cost, and that’s what is hurting the cost of production and capital efficiencies. “The median well in Saskatchewan is only six to 6.5 barrels per day. If you can’t make money on

the median well, what are you going to do? Property taxes keep rising. Compliance costs, regulatory, keep rising. Now they want to license flowlines under the Pipelines Act.â€? The recent expansion of the Saskatchewan provincial sales tax on oil and gas has been another hit. “The biggest capital hurt to us was the PST. The vast majority of our work was PST exempt, and they got rid of most of the exemptions,â€? he noted. Hromek’s overarching concerns is that Saskatchewan’s regulatory regime, combined with increasing Ĺš 3DJH $

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PIPELINE NEWS May 2019

A21

ŝƐĂƉƉŽŝŶƚŵĞŶƚ ŝŶ ƚŚĞ ůĂĐŬ ŽĨ ŶĂƟŽŶĂů ĐŽǀĞƌĂŐĞ ĨŽƌ ĐŽŶǀŽLJ ĂŶĚ ƌĂůůLJ͕ ƐĂLJƐ ĞŶŶŝƐ DĂŝŶŝů By Brian Zinchuk Weyburn, Regina – The day after the Regina Rally Against the Carbon Tax, Dennis Mainil was very disappointed with the level of national coverage of the event. Mainil is president of Jerry Mainil Ltd., a Wey-

burn-based oilfield earthmoving company that was instrumental in the planning of the event. The organizational meetings were held at their offices, and many of the company’s senior staff were key organizers. Asked why the were so heavily involved, “It’s some-

thing the owners and Jerry Mainil Ltd feel, for the betterment of Saskatchewan and all the people in Western Canada and Canada deserve a better deal than what we’re getting. Putting a carbon tax on is not going to solve any problems. You’ve got to create incentives to

promote business and energy efficient procedures. The technology that we have in this province has proven to be a leader. We’ve got to continue going that way, and taxing it is prohibitive, going forward.” “I was very disappointed in with the national

coverage,” Mainil said. “It’s very sad, when the only way Saskatchewan can get publicity is when 16 young people are killed in a bus crash a year ago. That goes across

the board like wildfire, but we have the biggest convoy in the world, and it doesn’t even hit the radar screen. That ticked me right off.” Ź 3DJH $

All things being equal, Alberta has ďĞƩĞƌ ƌŽĐŬƐ ƚŚĂŶ ^ĂƐŬĂƚĐŚĞǁĂŶ Ż 3DJH $ property taxes and other hurdles from rural municipalities, and now the PST, are making Saskatchewan increasingly less competitive with Alberta. And with the election of Jason Kenney’s United Conservative Party in Alberta, and their promise to reduce red tape and business taxes, Saskatchewan now has a lot less going for it in comparison. And this is where he turns to those aforementioned studies. The C.D. Howe paper speaks of pipeline constraints, corporate taxes, royalties, greenhouse gas emissions taxes as well

as property and municipal taxes. It found the cumulative competitiveness cost of government policies on a natural gas well and an oil well was highest in Saskatchewan, between Alberta (2017), Saskatchewan, Texas, North Dakota and Colorado. Much of that was attributed to pipeline delays. The Fraser Institute paper “sticks out like a sore thumb, the marginal tax rate on new oil and gas investment,” Hromek said. It found Saskatchewan’s marginal tax rate is the worst among North American oil producing jurisdictions. On oil Saskatchewan’s marginal effective tax rate is

35.9 per cent, or as Hromek pointed out, “The worst in North America.” Basically, that’s the tax rate on new investment, and includes all forms of taxes, from GST to royalties. That study even gives Saskatchewan something of a leg-up, as it incorporates a 17 per cent freeholder royalty rate, whereas in southeast Saskatchewan, that number is typically 18 to 21 per cent. “If Kenney gets in tonight in Alberta, Kenney’s going to drop their corporate rate from 12 per cent down to eight per cent. So that Alberta number of 23 per cent is going to drop four per cent. So look at

this difference between Saskatchewan and Alberta. It’s massive.” “At the end of the day, the main thing that matters in this business is the riskadjusted return on capital. If your risk is high because of geology, compliance and regulatory costs, and we know from the Fraser institute, our tax rates are higher, this hurts the return,” Hromek said. “You either deregulate or drop taxes. That’s the message I’m pushing.” He concluded, “I see Saskatchewan really falling behind here and losing out, being a competitor with other jurisdictions.”

Dennis Mainil ŇĞǁ ƚŚĞ ƉůĂŶĞ͕ ĂŶĚ Kevin Cooke ƚŽŽŬ ƚŚĞ ƉŚŽƚŽƐ͘ dŚĞƌĞ ǁĂƐ ĂŶ ĂǁĨƵů ůŽƚ ƚŽ ƐĞĞ ĨƌŽŵ ƚŚĞ Ăŝƌ ĂƐ ƚŚĞ ĐŽŶǀŽLJ ƉĂƐƐĞĚ tĞLJďƵƌŶ ĂŶĚ ƉƌŽŐƌĞƐƐĞĚ ƚŽ ZĞŐŝŶĂ͘ WŚŽƚŽ ďLJ <ĞǀŝŶ ŽŽŬĞ͘

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PIPELINE NEWS May 2019

Not much coverage beyond Saskatchewan Ż 3DJH $ “We didn’t get any national coverage. That was pretty sad, I thought. I got home, and my wife was so excited to see this on TV, and there was nothing. It was really bad.” That wasn’t for lack of media present, however. The press scrum at the end of the rally had the premier surrounded by a semi-circle of tightly packed cameras and microphones, with journalists and camera operators behind them, but it didn’t

get much beyond Saskatchewan’s borders. The National Post app had stories like “U.S. federal government in search of experts who can roll and joint,” and “Accountant buys $6 million in Apple iPhones and iPads on company credit cards and nobody notices for five years,” on its main page, but nothing on the convoy and rally. “You can tell how important we are in Western Canada. Not only do the politicians ignore us, but

so does the national media, and it’s pretty disgraceful to be treated like that. Really, we don’t even exist. It’s very frustrating.” Mainil took his airplane up over Weyburn. While he was flying, Kevin Cooke was shooting photos and video. The lineups in Weyburn, waiting to join the convoy, were nothing short of incredible as seen from the air. Beyond the convoy, his company now had to figure out how to live with

the carbon tax in Saskatchewan, implemented a few days earlier. While Jerry Mainil Ltd. has not yet determined what the impact of the carbon tax will be, they have determined that oil companies don’t want to see it tacked on. “They aren’t going to pay any more than they are paying on March 31. They won’t pay any more on April 1.” “The oil companies, flatly, it doesn’t matter what our costs are, they don’t

want to pay any more. I don’t want to pay any more to SaskPower. Do I have a choice? Yeah, but then they shut my power off. And if I say to my oilfield customers you’ve got to pay it, they’ll just hire somebody else,” he said. So at this time, they are likely going to have to eat it. “Have we got plans? yeah, I’ve got a lot of things going in my head,” he said, noting they’ve talked to other companies about their strategies.

Beyond the dirt moving company, Mainil, like much of his family, also farms. And the farm will also be affected greatly. “When I try to sell my canola, it’s not like I can collect more on my canola because I’ve got to pay carbon tax. Viterra, Richardson, nobody’s going to pay me more for my canola because there’s a carbon tax. There again, the farmer is going to eat it, too. “Our costs are going Ź 3DJH $

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PIPELINE NEWS May 2019

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hŶĐĞƌƚĂŝŶƚLJ ǁŝƚŚ ĐĂƌďŽŶ ƚĂdž͕ ĨƌƵƐƚƌĂƟŽŶ ǁŝƚŚ ƉŝƉĞůŝŶĞƐ ƐĂLJƐ WĂŶƚŚĞƌ ƌŝůůŝŶŐ͛Ɛ ŽƌLJ ,ŝĐŬƐ By Brian Zinchuk Weyburn – Cory Hicks, president of Weyburnbased Panther Drilling, was one of the first people to post a video saying his company would be taking part in the Regina Rally Against the Carbon Tax. And they did just that, on April 4. On March 21, he explained why they were taking part. “Basically, I’m against the carbon tax. The carbon tax will decimate an industry that’s already going through a lot right now. “It’s not just the oil industry. It’s going to affect all industry. It’s going to affect the single mom with three kids that has to pay her heating bill. It’s going to affect, obviously, my business. It’s going to affect farmers. It’s going to affect the bottom line of the hotel owners. It’s going to affect the quality of life, quite frankly, and it doesn’t make any sense to me.” He hadn’t yet calculated the cost to Panther. The next bid season is coming up. “There’s a lot of uncertainty,” he said, regarding dealing with the carbon tax in those bids. Beyond the carbon tax, the convoy and rally focused on three other points – building pipelines, killing Bill C-69 and Bill C-48. “Essentially, with the pipelines, we need to get to tidewater. As an industry, we’re selling to one customer. Anyone in business

knows that’s not healthy, because if you only have one customer that you’re selling to, they can essentially dictate price. People can talk about the world market and supply and demand. If we have too much, the price goes down. It also depends on the grade of oil, too; heavy, light, medium, whatever they need to blend. Asked if the lack of new pipelines has affected the amount they have drilled in the last year, Hicks said, “Oh, for sure. It’s affected the amount we’ve drilled for the last four years. Basically, if the oil companies are not drilling, if there’s not investment money going into Canada, into the oilfield, it makes it hard for me to drill for somebody. There’s only been a few oil companies that have been staying with Canada, and Saskatchewan, where I’m predominantly based in. The numbers went down exponentially. It’s absolutely crazy.” Regarding the direct impact on jobs, he said, “I had 106 employees in summer of 2014. Over the course of the last five years, it went up and down, but essentially I lost half my staff. It’s hit and miss, too. There’s a chance, perhaps, after breakup, I could get all four rigs out. It could change, too. “There’s so much uncertainty. If you asked me, after breakup, how many rigs you’ve got going, I’ve got two rigs going for sure.

Cory Hicks listened intently to the speeches during the Regina Rally Against the Carbon Tax. Photo by Brian Zinchuk

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But you never know how ‘for sure’ for sure is. If I had a 10-well program, until we TD’d (total depth) the tenth well, I wouldn’t know for sure. “The thing is, in the oilfield, we’re not looking for handouts. We need domestic policies. If bill C-69 comes to fruition, which I’ve actually sat and read parts of that bill, but the premise I get out of it is that anybody that wants to object to a pipeline can have their day in court. They can have their day to basically discuss in front of the regulators to say whatever and hold things up. If you want to build a

pipeline in 2019 and it goes under this review, it could go on for years before you get approved, which is what we’ve seen with Trans Mountain, which we saw with the other pipelines as well. They were actually approved, and then it was taken away, because we didn’t get the proper approval with everything. “They moved the goalposts. That’s what’s frustrating.” He was planning to fill a pickup for the convoy, and true to his word, Hicks could be seen near the front, listening intently as Premier Scott Moe spoke on April 4.

Panther Drilling’s Cory Hicks stands on a mud tank in ƚŚĞ ƐŚŽƉ ĨŽƌ ƌĞƉĂŝƌ ŽŶ DĂƌĐŚ Ϯϭ͘ ,Ğ ǁĂƐ ŽŶĞ ŽĨ ƚŚĞ ĮƌƐƚ to post a video saying he intended to take part in the Regina Rally Against the Carbon Tax. Photo by Brian Zinchuk

Brandt has been sending equipment, seen here on a trailer, to many rallies, including the convoy on April 4. Photo by Kevin Cooke.

"It's just a tax" Ż 3DJH $ up in many ways. Every bag of seed that comes in, maybe, as a farmer, there’s exemptions we’re up for, but all the product delivered to us, he’s not exempt,” Mainil said. “I don’t mind invest-

ing if there’s value. But there’s no value. It’s just a tax.” That tax will also double in two years. “It’s scary now, it’ll be really scary, going forward. It’s going to kill our economy. It’s going to ruin our

economy, and it’s going to take the entrepreneurial ship out of it. Our country is already being killed by bureaucracy. No one wants to invest in Canada. If I’m a billionaire sitting in China, and I can invest in the United

States, which has got a really hot economy now, or Canada, where they don’t want pipelines, that’s an easy no-brainer. I’m going to take my billion dollars and invest it where I can make money,” Mainil said.

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PIPELINE NEWS May 2019

A pipeline company was born 70 years ago By Robert Bott Calgary – April 30 marks the 70th anniversary of Enbridge’s Mainline system, which traverses Alberta, Saskatchewan and Manitoba and is Canada’s largest crude oil transportation network. This sophisticated pipeline infrastructure safely carries a variety of crude oil types, including production from the Canadian oil sands, to refineries across North America. Here’s a look at how this integral pipeline network, and Enbridge Pipelines, came to be. This story was submitted by Enbridge. Saturday, April 30, 1949, was the last sitting of the Canadian Parliament before members went home to begin campaigning for a June election. Amid the dozens of bills receiving final approval and royal as-

sent that day, two were of crucial importance for the company that would eventually become a key part of Enbridge. The Pipe Lines Act established federal regulation of interprovincial and international pipelines, and it provided that liquids pipelines could serve as common carriers like railways, open to multiple shippers. The Interprovincial Pipe Line Act incorporated IPL as an independent entity with its own board of directors and the ability to raise capital, build facilities, and manage pipeline operations. Parliament thus ended the first chapter in a story that began shortly after the major oil discovery at Leduc, Alberta, in February 1947, and it opened the second chap-

ter leading to the arrival of crude oil in Superior, Wisconsin, in December 1950. These events unfolded very rapidly—astonishing compared to today’s processes—and reflected the “can-do” determination and ingenuity of that era. Imperial Oil and its 69 per cent shareholder, Standard Oil of New Jersey, played leading roles in IPL’s creation as they scrambled to get Alberta’s new oil glut to markets. In the immediate aftermath of the Leduc discovery, they dug up a 60-yearold pipeline in Ohio and used it to carry the oil to railway connections in Edmonton. A refinery in Whitehorse, Yukon (part of the wartime CANOL project) was dismantled and transported to Edmonton, where it began

/Ŷ ƚŚĞ ĨĂůů ŽĨ ϮϬϭϴ͕ ƚŚŝƐ ůŽǁĞƌŝŶŐ ŝŶ ĐƌĞǁ ĐŽƵůĚ ďĞ ƐĞĞŶ ǁĞƐƚ ŽĨ sŝďĂŶŬ͘ WŚŽƚŽ ďLJ ƌŝĂŶ ŝŶĐŚƵŬ

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ďĞŶĚŝŶŐ ŵĂĐŚŝŶĞ ƉƌĞƉĂƌĞƐ >ŝŶĞ ϭ ƉŝƉĞ ĨŽƌ ŝŶƐƚĂůůĂƟŽŶ ŝŶ :ƵůLJ ϭϵϱϬ͘ >ŝŶĞ ϭ ǁĂƐ ďƵŝůƚ ŝŶ ƚŚĞ ǁĂŬĞ ŽĨ ƚŚĞ ŐŝĂŶƚ Žŝů ĚŝƐĐŽǀĞƌLJ Ăƚ >ĞĚƵĐ͕ ůďĞƌƚĂ͘ dŽĚĂLJ͕ ƚŚĞ ƐĞƌŝĞƐ ŽĨ ƉŝƉĞůŝŶĞƐ ƚŚĂƚ ŵĂŬĞ ƵƉ ƚŚĞ ŶďƌŝĚŐĞ DĂŝŶůŝŶĞ ƌĞƉƌĞƐĞŶƚ ĂŶĂĚĂ͛Ɛ ůĂƌŐĞƐƚ ĐƌƵĚĞ Žŝů ƚƌĂŶƐƉŽƌƚĂƟŽŶ ƐLJƐƚĞŵ͘ WŚŽƚŽ ƐƵďŵŝƩĞĚ operation in July 1948. Severe post-war steel shortages dictated these decisions. Imperial sold its large South American subsidiary, International Petroleum, in March 1948 for $80 million ($911.8 million in today’s dollars) to finance Canadian oil field and pipeline developments. Most of the Leduc area crude was sent initially by rail to refineries in Regina. Imperial calculated that a pipeline to Regina would reduce the shipping cost from $1 per barrel to about 25 cents. The company’s board approved building a

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450-mile pipeline in May 1948. The planned western terminus was moved from Nisku to its present location in eastern Edmonton after discovery of the prolific Redwater field north of the city in August 1948. Bud Speaker and Mark Connolly, later IPL district superintendents, made a preliminary survey of the route to Regina that summer. An engineering group assembled in Tulsa, Oklahoma, in November to begin the detailed planning with the assistance of Standard’s Interstate Pipeline subsidiary. In December 1948, Imperial ordered 450 miles of 16-inch pipe from a mill in Welland, Ontario; this was the largest diameter that could then be produced in Canada. When a longer system was later approved and larger sizes became available from U.S. suppliers, 20-inch pipe was used between Edmonton and Regina; the Canadian 16-inch pipe was laid between Regina and the U.S. border at Gretna, Manitoba, and 18-inch pipe went from there to Superior. Oliver Hopkins, a senior vice president of Imperial who would become IPL’s first president, had been gathering an executive team in Toronto since 1947. They faced continual challenges as Alberta discoveries kept increasing the potential production and expanding the potential markets. The first proposal, extending the pipeline to Winnipeg, would have been relatively simple and affordable. The much larger volumes available after Redwater raised the ante considerably in the final months of 1948. The United States was amply supplied with its own crude oil in the

1940s and in fact supplied much of the Canadian refinery market. Major import routes included Imperial’s Cygnet Pipeline built in 1913 from Ohio oilfields to Sarnia; a pipeline from Portland, Maine, to Montreal built in the early 1940s to reduce tankers’ exposure to German U-boats off Eastern Canada; tanker deliveries to Vancouver and Halifax, and rail shipments to the Prairies. The pipeline planners in Toronto and Tulsa realized that the next logical market for Alberta crude after Winnipeg would be Sarnia, Canada’s largest refining and petrochemical centre, which could be reached by tanker from Lake Superior. Getting to a lake port added cost and complexity and necessitated delicate negotiations with governments. Hopkins and attorney Bob Burgess, who would become IPL’s general counsel, won crucial support from Canadian Trade Minister C.D. Howe, known as the “Minister of Everything,” mainly because the project would provide a big boost to the nation’s balance of payments. However, Howe was also the Member of Parliament for Port Arthur (merged with sister city Fort William in 1970 to become the city of Thunder Bay), and he preferred an all-Canadian route to the Great Lakes. The Imperial team eventually convinced him that the longer distance and difficult terrain of the Canadian Shield would add $10 million to the cost and delay completion by a year. The government began drafting the necessary pipeline legislation, and Imperial petitioned for a bill incorporating IPL. Talks also began with U.S. authorities on permits for a pipeline across Minnesota to a port at Superior, Ź 3DJH $

PIPELINE NEWS May 2019

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April 30 marks the 70th anniversary of the Interprovincial Pipe Line, what is now Enbridge Ż 3DJH $ Wisconsin. Canada had no previous federal pipelines law, so the Pipe Lines Act was closely modelled on the Railways Act; it gave regulatory authority to the Board of Transport Commissioners and included key provisions such as the right to expropriate rightof-way if necessary. The bill received little notice

amid the other momentous political events that winter: Louis St. Laurent replacing Mackenzie King as prime minister, Canada joining the North Atlantic Treaty Organization, and Newfoundland joining Confederation, among others. The pipelines legislation was not introduced in the House of Commons until March 28, and debate was mini-

mal. The Co-operative Commonwealth Federation urged public ownership of pipelines, but that was the only significant dissent, and the bill passed easily on a voice vote. Curiously, there was no mention in the debate of the eventual Great Lakes route to Sarnia; the bill simply enabled international connections and exports. The IPL bill was

not considered until the final three days of the session because required notices first had to be published in Newfoundland newspapers. Imperial Oil’s ownership was reduced to about 50 per cent after the initial IPL share issue in September 1949, which raised the $90 million (equivalent to $990 million today) needed

for construction. Other investors included oil companies, institutions, and the general public. Imperial’s holding was further diluted to 33 per cent in later issues, but it remained the largest shareholder until 1983. Imperial’s purchasing department also continued to act as IPL’s agent, for a fee, and all purchase orders bore the Esso logo

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until 1978. With government approval and financing in place, IPL moved into high gear. The entire route was surveyed in the summer of 1949, and company agents began negotiating right-of-way with 2,100 landowners in Canada. Lakehead Pipe Line Company, incorporated that summer, would have Ź 3DJH $

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PIPELINE NEWS May 2019

/ƚ ĚŝĚŶ͛ƚ ƚĂŬĞ ůŽŶŐ ƚŽ ŐĞƚ ƚŚĂƚ ĮƌƐƚ ƉŝƉĞ ŝŶ ƚŚĞ ŐƌŽƵŶĚ Ż 3DJH $ to deal with its surveying and 400 landowners during the winter. The engineering team relocated from Tulsa to Edmonton and Superior in November 1949, and laid the first pipe from the ice across the South Saskatchewan River near Regina a few months later. Their American leader quit after a month of Edmonton winter, and Roger Clute became chief engineer, a title he would hold for the

next 20 years. Everything was in place for the three contractor groups and their 1,500 workers who would undertake what was then the world’s largest single-season pipelaying project during the wet, muddy spring and summer of 1950. (Calgary writer Robert Bott was commissioned in the late 1980s to write a corporate history of IPL, Mileposts: The Story of the World’s Longest Petroleum Pipeline, which

was distributed to employees on the 40th anniversary of incorporation in 1989. He conducted 46 in-depth interviews with key f igures in the company’s evolution and toured many locations along the line from Edmonton to Sarnia. He has continued to write about energy and pipelines, including major projects for the National Energy Board, and received a Lifetime Achievement Award from the Petroleum History Society). tŝƚŚ ŵŽƌĞ ƚŚĂŶ ϭϯ͕ϴϬϬ ŬŝůŽŵĞƚĞƌƐ ;ŶĞĂƌůLJ ϴ͕ϲϬϬ ŵŝůĞƐͿ ŽĨ ĂĐƟǀĞ ƉŝƉĞ͕ ŶďƌŝĚŐĞ͛Ɛ Mainline pipeline network has the capacity to transport 2.85 million barrels a day of ůŝŐŚƚ ĂŶĚ ŚĞĂǀLJ ĐƌƵĚĞ Žŝů ĨƌŽŵ ĚŵŽŶƚŽŶ ĂŶĚ ĂĐƌŽƐƐ ƚŚĞ ĂŶĂĚŝĂŶ WƌĂŝƌŝĞƐ ƚŽ ƚŚĞ h͘^͘ DŝĚǁĞƐƚ ĂŶĚ KŶƚĂƌŝŽ͘ DĂƉ ƐƵďŵŝƩĞĚ

Preparing to lower Line 1 into the trench in July 1950. Since then, a network of ƉŝƉĞůŝŶĞƐ ŚĂƐ ďĞĞŶ ĂĚĚĞĚ ƚŽ ƚŚĞ DĂŝŶůŝŶĞ ĐŽƌƌŝĚŽƌ ǁŚŝĐŚ ƉůĂLJƐ Ă ĐƌŝƟĐĂů ƌŽůĞ ŝŶ providing a safe and reliable energy supply for North American consumers. Photo ƐƵďŵŝƩĞĚ

The Alberta Clipper pipeline project was built in 2008-2009, as seen here in the summer of 2009 near Vibank. Photo by Brian Zinchuk

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PIPELINE NEWS May 2019

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Saskatchewan Common Ground Alliance breakfast ƐƚƌĞƐƐĞƐ ůŝŶĞ ůŽĐĂƚĞƐ ďĞĨŽƌĞ ƐƚĂƌƟŶŐ ǁŽƌŬ By Brian Zinchuk Estevan – The Saskatchewan Common Ground Alliance’s 30th anniversary contractor safety breakfasts came to Estevan on April 10, with about 120 in attendance at the Beefeater Plaza. The breakfasts are held throughout the province each spring during breakup, providing a safety reminder to be careful by ensuring line location is done before any ground disturbance. This year’s message also talked about what to do if you strike an overhead powerline. As a celebration of the 30th anniversary, breakfasts are being held in 30 different locations. Derrick Mann, SaskEnergy vice-president, engineering, integrity and construction, and SCGA board member spoke briefly before a video was shown highlighting several recent incidents. In these cases, no one was injured, but there was substantial impact. In one incident on the east side of Regina, a contractor struck a natural

gas line and several restaurants, a pub and a medical clinic had to be evacuated. As natural gas levels rose in a nearby building, power had to be shut off to 2,000 customers until the situation was rectified, lest the gas be set off in an explosion. Another case saw a contractor putting in a water line for a new business cut a fibreoptic communications line, which was down for 24 hours. During that time, the impacts were as broad as businesses unable to do transactions to kids being unable to do homework. That contractor thought he could just burry it and fill up the hole. He was found out, and the cost to him was estimated to be 10x to 15x any money they might have saved otherwise. Yorkton’s fire chief recounted how a man replacing his fence put the new fence post right beside the originals, but that was enough to hit an underground powerline that serviced the house, causing a fire to start in the house.

ƉƉƌŽdžŝŵĂƚĞůLJ ϭϮϬ ƉĞŽƉůĞ ĂƩĞŶĚĞĚ ƚŚĞ ^ĂƐŬĂƚĐŚĞǁĂŶ ŽŵŵŽŶ 'ƌŽƵŶĚ ůůŝĂŶĐĞ͛Ɛ ϯϬƚŚ ĂŶŶŝǀĞƌƐĂƌLJ ĐŽŶƚƌĂĐƚŽƌ ƐĂĨĞƚLJ ďƌĞĂŬĨĂƐƚ ŝŶ ƐƚĞǀĂŶ ŽŶ tĞĚŶĞƐĚĂLJ͘ WŚŽƚŽ ďLJ ƌŝĂŶ ŝŶĐŚƵŬ It also shut down the road between the local hospital and a school. The fire department’s bill alone was a minimum of $3,000. Overall, Saskatchewan had 480 line strikes last year, the majority of which were natural gas and telecom strikes. After the breakfast, Mann said, “The goal here is more education. We’re trying to get out. We have 30 breakfasts across the province this year in April, which is our safe digging month. We’re really trying to hit home to the people doing the excavating, making sure they’re using Sask 1st Call, they’re getting locates and working safely. That’s really the message. “It’s really simple, but it costs lives every year, it costs a lot of damage to infrastructure, and it takes

a lot of time and effort if people aren’t doing the right thing,” he said. Attendees were given this year’s safety pamphlet and a sticker indicating staking colour conventions. While Sask 1st Call has 92 member companies, but participation is voluntary and not legislated. Thus, there are some exceptions, a notable one being Access Communications. While the were represented in the video, they are not part of Sask 1st Call. “We work with them, try to encourage them, but it’s ultimately up to them to make that decision to come on. We obviously welcome them. The more companies we get on that 1st Call, the less companies people have to research who else is in the area,”

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Mann said. The SCGA is working with the government, both provincially and nationally to make this a legislative requirement. With all affected companies on board, that would make it a “one call” system instead of a “first call” system.

A line locate is done for free, but Sask 1st Call must be notified two days in advance. It can be done online at www.sask1stcall. com, there’s an app, and the number is 1-866-8284888. On the SaskTel Mobility network, you can also use #4888.

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PIPELINE NEWS May 2019

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