Pipeline News February 2012

PIPELINE NEWS Saskatchewan’s Petroleum Monthly

February 2012

Canada Post Publication No. 40069240

FREE

Volume 4 Issue 9

Chemistry:

Estevan

Mixing Things Up

REJECTS crude-by-rail A3

Minister Addresses

NORTHERN GATEWAY A12

Sneak Peak

SETI B1

CHAMPION

TECHNOLOGIES

Make It Flow C1

C&N OilĮeld pressure truck driver Cory Anderson applies chemical to a well in southeast Saskatchewan on Jan. 9. C&N is in the process of adding three more pressure trucks to address rising demand for chemical applicaƟon.

Photo by Brian Zinchuk

Rig Technician Apprenticeship Program 2012 training dates:

Location:

Motorhand (Level 1)

March 12 to 30

Saskatchewan Energy Training Institute, Estevan

Derrickhand (Level 2)

April 2 to 20

Driller (Level 3)

April 23 to May 11

Complete course descriptions are available at www.southeastcollege.org or www.saskapprenticeship.ca

To register in the Rig Technician Apprenticeship program, please contact the Saskatchewan Apprenticeship and Trade Certification Commission toll-free at 1-877-363-0536.

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PIPELINE NEWS February 2012

INSIDE A SECTION

10 Baker Hughes

4

2011 Drilling record

13 FSIN calls out Province

5

Kelly Lafrentz winds down

14 ALL Canada Crane

6

Editorial

16 Bypass Industrial Park

7

Opinion

19 Enbridge Bakken Pipeline

12 Minister: Northern Gateway

21 ThermoVault

14 XL Fluids

C SECTION

16 Boundary Dam CO2 Stripper

1

Champion Technologies

21 ShiŌing Gears: Nadine Elson

3

Brother's Specialized CoaƟng

24 Bakken research paper

6

MulƟ-Chem

B SECTION

12 Caradan Chemicals

1

Sask. Energy Training InsƟtute

15 Keystone jobs

4

Williston Basin Petroleum

22 Smart Sponge

Conference

26 Careers

C&N OilĮeld

30 Resource Guide

6

PIPELINE NEWS Saskatchewan’s Petroleum Monthly

March 2012 Focus Contact your Sales Rep to be a part of the focus edition

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Cindy Beaulieu Sales Manager

Candace Wheeler

Deanna Tarnes

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cwheeler@estevanmercury.ca dtarnes@estevanmercury.ca kohandley@estevanmercury.ca thrywkiw@estevanmercury.ca

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NW Sask - for all of your advertising needs contact: Ph: 780.875.6685 Fax: 780.875.6682 Cell: 780.808.3007

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randi@pipelinenews.ca

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PIPELINE NEWS February 2012

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TOP NEWS

This pumping unit, and the tanker cars behind it, are not welcome in Estevan, according to Estevan city council.

Not far beyond these cars is a residenƟal subdivision. Photo by Brian Zinchuk

Ship your oil elsewhere, please

By Brian Zinchuk Pipeline News Estevan – Estevan city council has asked Canadian Pacific to stop transloading crude oil from trucks to rail cars in its Estevan railyard.

The Estevan Mercury reported on Jan. 11, “At their first regular meeting of 2012, the members of city council formally requested that CPR halt activity at the transload site until at least Jan. 24 when the two sides are expected to meet to discuss a number of issues, primarily CPR's emergency plan for the site. The City is also concerned about the number of trucks accessing the site, which is located on CPR property in the centre of town, via Kensington Avenue.”

As of Jan. 16, Canadian Pacific had not stopped operations. Results of the planned Jan. 24 meeting were not available at press time.

Transloading is the process of transferring a shipment from one mode of transportation to another. In this case, it refers to transferring crude oil from tanker semis to tanker rail cars, via a toploading pump system not much bigger than a large grain auger. There is no tankage, and rail cars are loaded directly from trucks. A typical rail tanker car is 600 to 650 barrels in capacity, the equivalent of roughly three fully-loaded tridem tanker trucks, or two truck-and-pup A-trains.

Pipeline News sat down with Estevan city Councillors Chris Istace and Lynn Chipley on Jan. 11 after a Chamber of Commerce luncheon where the pair spoke about the City’s plans for the year.

Chipley was filling in as acting mayor while Mayor Gary St. Onge was on holidays.

“They came in and told the City we’re moving ahead. We had no idea they had planned for transload from trucks to rail cars,” said Istace, who said they got their notice from a media release.

That release came out Dec. 7.

Istace said that as a federally regulated entity,

the railway, “in their eyes, superceded local laws.”

Istace referred to zoning and business development bylaws, in particular.

He added he was not questioning the integrity of Canadian Pacific to do a good job, but said there was no external environmental assessment done, just an internal one.

Istace said there is no way to properly fight a fire there, as there is no water source nearby. There is also no site containment, in case of a spill. To the north of the site is a natural drainage course, and there are plans for a pathway nearby.

A residential subdivision is approximately 300 metres to the north of where the cars are being loaded.

Geographically, the transloading facility is the dead centre of the city, and if there were an issue requiring an evacuation, half the city would have to be evacuated within half an hour.

“We’re working to create places outside of the city,” he said with regard to industrial development.

Asked about the existing industrial park adjacent to both the transload site and the residences, Istace said, “It’s there, we deal with it, but we can address what comes into the city.”

Chipley added, “The railway can’t fall back on 150 year-old legislation. If we had a spill, our groundwater, our tap water would be at risk.”

Traffic is a huge concern, she said. The private road Canadian Pacific is using along its right of way joins Kensington Avenue near TS&M. Part of the pair’s presentation to the chamber was on the City’s plans to eliminate the service road in front of TS&M, the one linking this private road, in an effort to change traffic patterns.

Kensington is already congested, Chipley noted.

“We’ve done traffic studies for the (Glen) Peterson (Industrial Park),” Chipley said, adding lights and merge lanes for its entrance onto Kensington are in the works.

“We didn’t anticipate left hand turns for 80-

foot long trucks at the tracks,” she said.

The City understands the site could be seeing as many as 54 trucks a day.

CPR response Ed Greenberg, spokesman for Canadian Pacific, said on Jan. 16 “We’re working on the (City’s) questions and the response we’re getting from the City of Estevan.”

He said the railway was trying to get clarity on the areas the City wants further discussion on.

“We’re continuing to operate,” he said, adding he was not aware of any formal request from the City to shut down the transload site.

He noted the transload operation was on Canadian Pacific property, and in compliance with all the rules, regulations and laws with respect to its operation.

Transloading is safe, Greenberg added. “We do not take that process lightly.”

The company ensures the process is done safely, he said.

Transloading in urban centres is nothing new, he explained. “We have about 35 transload facilities across our network that involve energy products.”

Calgary and Edmonton are just two locations on that list where similar work is done.

Transloading has been done for many years, with detailed procedures, and is safe, he said.

These products already go through Estevan, Greenberg added.

“We respond to the needs of our customers.

We’re enabling the industry and the economy to continue to move forward.”

The customer, in this case, is Cenovus Energy, who made a parallel announcement in December about shipping oil through Estevan by train. Cenovus has been actively drilling south of the Shand Power Station for some time now.

As of Jan. 16, Canadian Pacific had not received any calls to its “Community Connect line” pertaining to the transload site, Greenberg said.

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PIPELINE NEWS February 2012

BRIEFS

Saskatchewan’s drilling took oī in 2011. It even spawned a few new drilling companies, like Vortex Drilling, and BeƩs Drilling, whose Įrst rig, seen here, went to work at the end of November. Both companies launched with two rigs in short order. BeƩs Rig 2 is currently under construcƟon in Estevan.

Drilling full out in January

It didn’t take long for Saskatchewan’s drilling fleet to get back to work after the holidays. According to Riglocator.ca, in the first few days of January, the number of active drilling rigs surged to around 100 and stayed close to that number.

In the meantime, a number of Saskatchewan rigs wandered west, into Alberta.

As of Jan. 17, the Saskatchewan fleet has shrunk to 114 units, down roughly 25 from its peak last summer, but just slightly lower than the 120 or so it has been for much of the past several years.

Atikwa brings on more oil Atikwa Resources Inc. has completed the drilling of its eighth horizontal well targeting Spearfish light oil in the Pierson area of Manitoba.

The 2-6 well, which was the final well in the 2011 program, was scheduled to be fractured and put on production before the end of January. All of the wells in the 2011 program appear to be following a similar inflow pattern characterized by strong initial rates of production of up to as much as 200 bpd of fluid, which then stabilizes at approximately 80 to 100 bpd.

Briefs courtesy Nickle’s Daily Oil Bulletin

Drilling records augur well for 2012

By Geoff Lee Pipeline News Regina – Oil’s well that ends well.

Saskatchewan’s oil and industry officially closes the book on 2011 with a record setting number of wells drilled and a record number of horizontal wells drilled.

Year-end statistics from the Ministry of Energy and Resources show that 3,528 oil wells were drilled in 2011 in a year.

The new well total represents a 29 per cent increase over the total for 2010 and is just shy of the record figure set in 1997.

That activity contributed to the new record for horizontal oil wells drilled last year. There were 1,992 of these wells drilled in 2011, a 30 per cent increase over 2010’s previous record.

Horizontal well drilling has become the standard in the

Canadian oil industry and Saskatchewan was a pioneer in the application of these drilling technologies.

“Our oil industry continues to be one of Saskatchewan’s economic drivers, and these numbers speak to the confidence the industry has in our province and the valuable oil resource we have here,” said Energy and Resources Minister Bill Boyd.

“Early on, the industry had the challenge of a wet spring, but obviously rebounded from that in impressive fashion.”

The minister noted that more than 5,000 oil well licences were also issued last year.

“This take-up on well licences is not only reflective of the great drilling numbers we saw in 2011, but is also a sign of the industry activity we expect to see this year,” said Boyd.

Saskatchewan’s oil and gas industry recorded an estimated $11.7 billion in sales last year and invested roughly $4.2 billion in exploration and development activity. It provides direct and indirect employment for more than 32,000 people.

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PIPELINE NEWS February 2012

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BRIEFS TransCanada goes solar

Arlene and Kelly Lafrentz are considering some travel now that their oilĮeld businesses are wound down.

File photo

Frenetic pace, labour shortage leads to wind-down

By Brian Zinchuk Estevan – After 27 years in business, and 35 years in trucking, Kelly Lafrentz and his wife Arlene decided the time was right to shut down their oilfield trucking and rentals businesses.

Kelly Lafrentz Trucking and Border Tank Rentals wound down operations in late October. The fleet of trucks and trailers was sold at auction at Ritchie Brothers at Nisku in early December. Border Tank Rentals was sold to Black Diamond Energy Services Nov. 23.

While there were a number of considerations behind the couple’s sale of the privately held operations, the biggest one was people, or more specifically, the lack of them.

The ability to attract and retain workers is directly related to the pace of work the oilpatch demands, a pace the couple say is unsustainable.

“We’ve been grappling with this decision for the last two years, even when building the new building,” said Kelly. “The main reason is people. You can’t get good people, you can’t

keep good people.”

He was tired of filling in himself whenever a driver was needed.

It was Arlene’s analysis of the books that was the final straw.

“We were losing money on the truck side because of the investment on equipment wasn’t being utilized due to the lack of people.

“Our plan was to take that capital and roll it into our rental operation and build the rental company.”

The rental company, Border Tank Rentals, did not have labour issues, and had loyal, long-term staff, they said.

Border Tank was started nine years ago because of the synergies it offered the trucking business. Much of the company’s work had been hauling other companies’ rental equipment, so they decided to get into the rental equipment business as well.

After the trucks went up for sale, interest shot up for the rental business. ɸ Page A8

"The oilĮeld will be in this crisis for people unƟl they get rid of the panic mentality. The rest of the world works Įve to six days a week, 10-hour days. On Saturday, they want to stay in bed with their wife."

- Kelly Lafrentz

TransCanada Corporation has agreed to purchase nine Ontario solar projects from Canadian Solar Solutions Inc., with a combined capacity of 86 megawatts for approximately $470 million.

All nine projects have 20-year power purchase agreements with the Ontario Power Authority.

“The addition of these solar projects allows us to expand and add to our diverse power generating portfolio where a third of the power we own, or have interests in, comes from alternative or renewable energy sources,” Russ Girling, TransCanada’s president and chief executive officer, said in a news release. “Upon close of this acquisition, this low-risk investment is expected to be immediately accretive to earnings and cash flow.”

Petro Viking closes acquisition Petro Viking Energy Inc. has closed its acquisition of assets at Plato, Saskatchewan.

The acquisition consisted of the purchase of the remaining 70 per cent working interest in certain lands, a portion of which is held by related parties to the company.

After giving effect to the acquisition, the company owns a 100 per cent working interest in two sections of land targeting Viking oil.

Briefs courtesy Nickle’s Daily Oil Bulletin

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PIPELINE NEWS February 2012

PIPELINE NEWS

EDITORIAL

Mission Statement: Pipeline News’ mission is to illuminate importance of Saskatchewan oil as an integral part of the province’s sense of community and to show the general public the strength and character of the industry’s people.

Publisher: Brant Kersey - Estevan Ph: 1.306.634.2654 Fax: 1.306.634.3934 Editorial Contributions: SOUTHEAST Brian Zinchuk - Estevan 1.306.461.5599 SOUTHWEST Swift Current 1.306.461.5599 NORTHWEST Geoff Lee - Lloydminster 1.780.875.6685

Associate Advertising Consultants: SOUTHEAST • Estevan 1.306.634.2654 Cindy Beaulieu Candace Wheeler Kristen O’Handley Deanna Tarnes Teresa Hrywkiw SOUTHWEST • Swift Current 1.306.773.8260 Doug Evjen Stacey Powell NORTHWEST • Lloydminster Randi Mast 1.780.875.6685 MANITOBA • Virden - Dianne Hanson 1.204.748.3931 • Estevan - Cindy Beaulieu 1.306.634.2654 CONTRIBUTORS • Estevan - Nadine Elson To submit a stories or ideas: Pipelines News is always looking for stories or ideas for stories from our readers. To contribute please contact your local contributing reporter.

Subscribing to Pipeline News: Pipeline News is a free distribution newspaper, but 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.

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Special thanks to JuneWarren-Nickle’s Energy Group for their contributions and assistance with Pipeline News.

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.

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Energy City not so sure about energy exports Just as the Northern Gateway pipeline debate heats up, we in Saskatchewan are beginning to see a much smaller, yet similar debate form in Estevan.

The Enbridge Northern Gateway is designed to take 500,000 bpd of oilsands bitumen from northern Alberta to Kitimat, B.C., where it will be loaded on supertankers and shipped overseas to foreign (Asian) markets. Condensate will be shipped back to Alberta via a smaller, parallel pipeline to act as diluent for the bitumen. The capacity of this pipeline is greater than all of Saskatchewan’s daily production combined. A substantial port will need to be built.

In Estevan, Canadian Pacific Railway has begun loading rail cars within the very centre of the city.

Trucks haul southeast-Saskatchewan produced crude into Estevan, where it is loaded onto tanker cars and shipped via rail to foreign (U.S.) markets.

CP’s rail loading facility in Estevan is tiny, with the pumping unit not much bigger than a large grain auger. And more to the point, it is not substantially different than what is used on battery sites all throughout the region, including those near farm houses.

While at first these seem to be totally dissimilar, they are not. Both are very poignant examples of Not In My Back Yard (NIMBY ) politics.

In the Northern Gateway case there are concerns about the environment and safety – what happens in cases of a pipeline or tanker spill? In Estevan, the concerns are similar. What happens if there’s a spill, or the fire department needs to respond?

The only substantive difference is scale.

Kitimat, and the First Nations whose land will be crossed to get there, is not Estevan, however. And that’s why the local Estevan debate is rapidly climbing the disingenuous scale.

Estevan calls itself the Energy City. There are nice signs saying that at each of the city’s entrances.

It has one of the lowest municipal tax rates in the province precisely because of the very high concen-

tration of oilfield services companies who are based there. They have made the community the oilpatch service hub for southeast Saskatchewan and southwest Manitoba.

This is also the sector that so recently contributed greatly to the new Spectra Place arena, which allowed the citizens of Estevan to get off very lightly with respect to the paying for it.

You would think there might be some understanding here. After all, which is more worrisome, the crude oil being trucked through Estevan to the rail loading site, or the countless dangerous goods loads that go through the city every hour, by rail or truck? What about the numerous hazardous materials trucked in, stored, and trucked out again within a few hundred yards of the CP loading site? Crude oil, in comparison to the products needed to produce it, might seem rather innocuous.

It was not the railroad, or the energy companies using it, who chose to zone residential housing adjacent to both the rail yard and industrial park. That was the city’s choosing. The rail yard was there long before the housing was. And the people who bought houses nearby did so on their own accord. Pretty much anything and everything, including hazardous materials, is shipped by rail, including on the mainline that runs through Estevan.

If there is a gap in fire protection for that area of the city, then it existed previously, and perhaps should have been addressed long ago. If it is necessary to bring in a high-pressure water main to service this area, that may need to be considered.

And if not Estevan, then where should such a facility be set up? One of the villages further down the line, which has almost no response capability – spill or fire – in comparison to Estevan? Or do we start to adopt the Keystone Pipeline opponents’ arguments, fighting any oil development of any kind?

Estevan needs to take a hard look in the mirror and decide if it truly is the Energy City.

PIPELINE NEWS February 2012

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OPINION From the Top of The Pile

By Brian Zinchuk

What on earth is Iran thinking?

Dictatorships like to rattle sabres and puff up their chests. We’ve seen it for years from North Korea. But North Korea offers the world essentially nothing, and so it could be ignored.

At least until a few years ago, when it tested its first nuclear weapons.

Iran has also made similar noises, but this time the stakes are a lot higher. Unlike Iraq’s supposed weapons of mass destruction program that acted as justification for the second Gulf War, Iran’s probably got nukes.

As for reports of “they could have a bomb in a year or so,” how would we know? Really, if they are that close, it could be a year, or a week. Look at how quickly the Manhattan project, starting from scratch, put together three functional nuclear bombs.

We’ll know for sure when our seismometers detect the Iranian test blasts.

The world has known about this for years, and chosen to do very little, save sanctions. Those recently-strengthened sanctions are now taking a toll, as Iran’s currency is taking a beating. In the meantime, the country ran war games beginning in late 2011, practising closing the Strait of Hormuz.

On Jan. 3, they even threatened an American aircraft carrier. Talk about waving a red flag at a bull!

Just days after the U.S. finally pulled out of Iraq, ending a war it shouldn’t have started, it may find itself drawn into a war it doesn’t want, with a nuclear-armed enemy.

The hyperbole of what “closing the Strait of Hormuz” could accomplish is a little scary, if it

should come to pass even for a few months. One analyst said oil could hit $300 to $500 a barrel.

Given that oil prices tend to jump a few dollars when a small percentage of world oil production is at risk due to war – consider Iraq and Libya as the most recent examples – shutting down the ability of one sixth of world oil exports to move could cause just that.

While few think Iran could stand up for long against the United States Navy, remember, naval mines are cheap, easy to produce, easy to deploy, and have been used by Iran before. Anything that floats can push a mine over the side, and Iran has submarines that can do the job, too.

The ramifications here in Canada would be disastrous. Our economy is highly dependent on transportation across our wide-open spaces. How much would fresh bananas cost with diesel at $4.80 a litre, or nearly $20 for a U.S. gallon? Consider a drilling rig – which uses up to 4,500 litres a day during the winter. If you think the diesel shortage was tough this winter, wait until the Strait of Hormuz is closed.

Would Canada impose some form of national energy program as an interim measure? As undesireable as that would be, would keeping Canadian fuel production ‘affordable’ for Canadians be the only course of action that could keep our economy afloat? Farmers likely couldn’t plant crops with diesel at those prices, and we need to eat.

We’re talking war measures here, folks, rationing and price controls. Even if Canada doesn’t get involved in any shooting in Iran, the impacts would

be felt here.

Remember, Canada does not have a strategic oil reserve. Perhaps we should be reconsidering that now, at least for Eastern Canada, which depends on imported oil.

Hopefully this will all blow over like so much hot air. Maybe it’s head-in-the-sand mentality, and there’s a lot of sand in the Middle East to bury your head in. But if Iran does take a potshot at the USS John C. Stennis, aircraft carrier, 5th fleet, expect our world to change in a heartbeat.

Brian Zinchuk is editor of Pipeline News. He can be reached at brian.zinchuk@sasktel.net.

ARABIAN SEA (Jan. 1, 2012) AviaƟon Boatswain's Mate (Equipment) 2nd Class Lian Lawrence stands waist safety as an F/A-18E Super Hornet from the TophaƩers of Strike Fighter Squadron (VFA) 14 launches oī the Ňight deck of the Nimitz-class aircraŌ carrier USS John C. Stennis (CVN 74). (U.S. Navy photo by Mass CommunicaƟon Specialist 3rd Class Kenneth Abbate/Released).

Lee Side of Lloyd

By Geoff Lee

Better late than never for 2012 predictions

It is better late than never to write a column predicting what will happen to affect oil and gas prices in 2012.

I do so a month late using history as my guide.

Hindsight is a far more accurate tool than a crystal ball and I always point to politics, economics, wars or natural disasters as sources that will likely impact oil and gas prices, for example, in 2012.

In 2011, it was political instability in producing countries such as Iran and Libya that kept oil prices over the $100 a barrel mark for most of the year.

In the U.S., environmental issues in the state of Nebraska became the flashpoint for protesters in Washington that prompted President Barack Obama to delay the approval of the Keystone XL pipeline until this year’s presidential election.

The tsunami that devastated Japan and caused radiation leaks from affected nuclear reactions also helped to keep the price of oil relatively high.

Looking ahead to the rest of this year, we can

expect more of the same from instability in places like Syria and Iran.

Any fear over oil shipping disruptions in the Strait of Hormuz between Iran and Oman could trigger higher oil prices at least in the short term as it has in the past.

Just as it did in 2011, European economic uncertainty will continue to play a role in the supply/ demand equation for oil and gas with any weaker demand likely to be offset by growth in Asia.

Any disruption of oil flow to the U.S. could also help to fast-track the approval of the Keystone XL as U.S. demand picks up along with their economy.

In Canada higher costs of production and a growing labour shortage could also do their part to keep oil prices over the $100 mark.

History also tells us to brace for varying degrees of supply and demand shocks from accidents such as pipeline leaks, refinery fires and explosions, and spills from ship-wrecked oil tankers.

Natural disasters such as volcanic eruptions, earthquakes, tsunamis, and storms will also play a role in the supply and demand chain with the most likely places being where these have occurred in the

past.

Having said that, who could have predicted the massive flooding that swamped southeast Saskatchewan last spring, bringing industry field operations to a halt for weeks?

Technology is likely to play an even bigger role in the economics of oil and gas exploration, drilling and production throughout the year for companies seeking to maintain a competitive edge.

Production is the name of the game, so technology that will allow companies to produce more light and heavy oil economically will be the industry leaders in 2012.

Natural gas could also find a footing in 2012 if new gas to liquids technology takes hold on a commercial level or if more utilities turn from coal to natural gas to generate electric power.

A cold winter predicted for Western Canada by Environment Canada would also drive up demand for the beleaguered gas industry.

As for those crystal ball predictions that the world will end on Dec. 21 according to a Mayan calendar – that has been put to rest – by historians who know more about the future than anyone else.

PIPELINE NEWS INVITES OPPOSING VIEW POINTS. EDITORIALS AND LETTERS TO THE EDITOR ARE WELCOME. Email to: brian.zinchuk@sasktel.net

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PIPELINE NEWS February 2012

Kelly Lafrentz Trucking and Border Tank Rentals exit ɺ Page A8 “Then we got three offers to buy the rental company after we decided to sell the trucks,” Kelly said.

One of those was the “right offer.” It was all-cash, and unlike most of the corporate buyouts of private, family companies in southeast Saskatchewan over the past year and a half, it did not require them to stay on-board for several years or take stock in the new company. The Lafrentzes

could simply walk away, without strings attached.

That was a great relief to them.

“We like to direct our own investments.

If we wanted to take shares in the company, we might as well have kept it and ran it,” Kelly said.

They initially wanted to retire when Kelly hit 55. This occurred just a few years before that.

Like many of the other operations that have recently sold in the region, succession

planning was an issue.

None of their children were interested in running the business.

“They don’t want to live it. They know what we sacrificed,” Kelly said, adding, “We did have some terrible lean years.”

With that in mind, the decision to get out was a big one, especially since staying in business was fraught with the prospect of more lean years.

“You’re in the biggest poker game of your life, and the pot is

Kelly Lafrentz took Pipeline News on a delivery of a tank near Estevan two years ago.

File photo

While the rental business, whose tank can be seen here, was proĮtable, the trucking side was not due to a shortage of workers.

File photo

yours,” Kelly said. “Do you gamble and make it bigger, or cash out?

“We took it to the cashier’s window.”

While times are good, so are offers. They couldn’t risk another 2009, for instance. In a poor year, an offer to purchase could have been much less attractive.

The last three or four months, the company was down to a skeleton crew. Most had hired on elsewhere. “We were hiring a lot of third party trucks to haul,” Kelly said. “This beast cannot go on without people, or a place for people to live.

“The oilfield will be in this crisis for people until they get rid of the panic mentality. The rest

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of the world works five to six days a week, 10hour days. On Saturday, they want to stay in bed with their wife.”

Kelly noted the younger generation willing to work 12 hour days, but doesn’t want to work 24/7. “The oilfield still doesnt’ get it.

“It doesn’t look to me like we would get out of this labour situation anytime soon.

“The big players are the ones who don’t understand. We’ve worked for some great people, who give you two to four days notice. Scheduling can be done.

“The big machine has to start scheduling this as a regular job.

They do in the U.S. They go home at the end of the day.”

He noted, “The oilfield has made us wealthy, but there was a lot of sacrifice, too.

We worked for a lot of good people, but public ownership took a lot of the joy out of it. There are a lot less personal connections now. That atmosphere is gone.”

Their staff did not have difficulty finding

other work, and they’ve already had several inquiries about leasing their shop.

It will take about six months to wind down operations.

“I still teach voice,” Arlene said, while Kelly is active as reeve of the RM of Estevan. Arlene is also one of the partners of Triple Threat Theatre, a new, local theatre company.

“We still own our buildings,” she said.

Indeed, their sonin-law, whose building contractor operation is in their old shop, will be moving over to another building.

The main shop is being leased by Black Diamond until they can get their new location built just east of Estevan, on Shand Road.

“They’re building a new facility on the east side of town,” Kelly said.

The couple noted their emotional attachment, saying it was hard to let go. But on the pure business side, they decided, “It’s gotta go.”

“I had a pang when I saw the trailers stacked up,” Arlene said.

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PIPELINE NEWS February 2012

A9

Loading up prior to drilling Finding employees can be a challenge. “I’ve looked everywhere,” McCagherty said, noting he has had some success with Kijiji. However, it’s hard to attract people to Estevan, especially due to the housing shortage. Like many other yards in the area, there’s a camper trailer available for short-term stays for workers.

“I rent a two-bedroom suite for the drivers,” he said. The camper gets used if the suite is full. Workers are on 15-day on, 15-day off rotation. ɸ Page A10

Steve Ste McCaghe McCagherty, like many o other managers, has had challenges in Įndi nding workers in southeast SasS katchewan.

By Brian Zinchuk Estevan – When you’re about to drill a well, you have to do a little shopping first. In particular, you’re going to need a semi van full of a wide assortment of supplies, everything from drilling mud to sawdust, before you spud.

Formula Powell L. P. in Estevan is one such place that can supply your needs. The member of the Mullen group of companies has nine locations in Western Canada, including Lloydminster and Estevan Steve McCagherty is the Estevan branch manager. “We’re a one-stop shop,” he said.

“We have the drilling mud, the rental vans, rental hiboys, the trucks, and the manpower to do the work.”

While there are several competitors in the region, he noted, “We’re the only one that’s not a mud company. We have six different mud companies that work out of here. We’re the only one in town that does third party (sales).”

“We do have the capability of doing other work than just drilling mud. We can haul just about anything,” he said.

The operation has five power units, two hotshot trucks and a tandem deck truck. If they need assistance, they can get it from other Mullen group companies in the area.

The Estevan location used to be Bri-Chem Supply. While they still carry Bri-Chem products, it’s now a Formula Powell operation. Bri-Chem remains their largest supplier.

“The bulk of what you see here is owned by Bri-Chem,” McCagherty said.

They have three tractor drivers, three yard people, a dispatcher and a manager.

McCagherty’s wife, Carla, is the yard supervisor. She started working for the company six months after he did, in 2010. “She can pack bags of 88.2 pounds better than most guys,” he said. She was formerly a warehouse supervisor for Mopar in Red Deer.

This van v is nearly loaded and ready r to go to a drill site.

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A10

PIPELINE NEWS February 2012

Filling a drilling rig's shopping list

Carla McCagherty movess a pallet with a forkliŌ at Formula Powell’s well’s Estevan locaƟon.

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ɺ Page A9 During the interview, the phone rang. It was someone from Winnipeg looking for work. As soon as they heard it was in Estevan, they were no longer interested.

“Trying to get employees to work down here is next to impossible,” he said.

Of 30 resumes he received for a yard person position, he called 15. One person returned his call.

Pick list On the big board on the wall, 28 drilling rigs are listed, being actively supported by Formula Powell. “It’s high right now,” McCagherty said, noting 22 to 27 is more common. However, he added things haven’t peaked yet.

Orders start with an list put together by the mud engineer. This is an extensive list, with up to 30 or so items on it.

“We get a call from our mud guys in the field, the mud engineers on the drilling rigs. They will e-mail a standard mud load with up to 30 items.

“As soon as they do that, we’ll get on the load. I’ll enter it into the computer and generate a pick list. I’ll give it to the yard people, and they will load it.”

The products go out on one of their numerous trailers. “I’ve got 45 48-foot cans and 17 flat-deck highboys,” McCagherty said.

These are often used trailers, modified with items like side doors, reinforcement, pull straps, and heavy duty dolly legs. “They all have pick-up throats so they can be winched on,” McCagherty said.

“They will sit on site until the well is done.”

It’s typical to ensure the order is in excess of what is actually needed, should a problem arise during the drilling. You can’t drill if you run out of mud, for instance.

“Often we will get back a full pallet of 40 bentonite gel bags back on a 120 bag order,” he said. “They usually have a contingency plan, for situations such as losing circulation or taking a kick.”

Most loads are quite common, and include items like caustic soda and sawdust.

Sawdust is used to thicken mud and pick up sediments. It’s a mainstay, McCagherty said. “There’s 150 minimum in every van,” he said.

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PIPELINE NEWS February 2012

A11

Gateway pipeline out of the starting blocks Calgary, Alta. – The proposed $5.5 billion Enbridge Northern Gateway pipeline project got out of the starting blocks on Jan. 10 with the first public hearings at the First Nation community of Kitimat Village in British Columbia.

The National Energy Board will make the final decision on the fate of the pipeline project by the end of 2013.

The NEB’s decision will follow a lengthy public review process being

led by an independent joint review panel and the release of an environmental assessment report in the fall of 2013.

The pipeline is not without controversy as noted by early remarks by federal Minister of Natural Resources Joe Oliver, when he called opponents of the Northern Gateway “radicals” who are being manipulated by foreign interests.

The Harper government is not alone in believing the pipeline is in

New horizons

The sun rises on the expansion of the Kramer Ltd. shop near Estevan on Jan. 6.

Photo by Brian Zinchuk

Canada’s national interest in the wake of delayed approval of the Keystone XL pipeline.

The Northern Gateway would provide Canadian oil producers access to international markets in Asia and the United States West Coast from new port facilities to be constructed in Kitimat.

Due to its potential environmental impacts, the project faces opposition by many First Nations and environmental groups.

The proposed Northern Gateway project involves the construction of two 1,170 kilometre long pipelines running from Bruderheim, Alberta to Kitimat, B.C. and the construction

and operation of the Kitimat Marine Terminal.

One 36-inch pipeline would carry on average 525,000 barrels per day of petroleum west to Kitimat while the other line would carry 193,000 barrels of condensate a day east to Bruderheim.

The Kitimat Marine Terminal would have two ship berths and storage for three condensate tanks and 11 petroleum tanks. It would also include a radar monitoring station and first response capabilities.

The panel will wrap up the first stage of public hearings on the merits of the project in Grande Prairie on March 28.

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A12

PIPELINE NEWS February 2012

Federal minister starts “Unfortunately, there are environmental and other radical groups that would seek to block this opportunity to diversify our trade. Their goal is to stop any major project no maƩer what the cost to Canadian families in lost jobs and economic growth. No forestry. No mining. No oil. No gas.

No more hydro-electric dams.”

- Minister of Natural Resources Joe Oliver

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Government of Canada handout photo

Ottawa - Just before hearings began on the Enbridge Northern Gateway Pipeline, federal Minister of Natural Resources Joe Oliver on Jan. 9 threw a metaphorical hand grenade in the room, referring to opponents as radicals. Here is the text of his open letter: Canada is on the edge of an historic choice: to diversify our energy markets away from our traditional trading partner in the United States or to continue with the status quo.

Virtually all our energy exports go to the US. As a country, we must seek new markets for our products and services and the booming Asia-Pacific economies have shown great interest in our oil, gas, metals and minerals. For our government, the choice is clear: we need to diversify our markets in order to create jobs and economic growth for Canadians across this country. We must expand our trade with the fast growing Asian economies. We know that increasing trade will help ensure the financial security of Canadians and their families. ɸ Page A13

***

Correction In the January, 2012 edition of Pipeline News, there were two names misspelled.

On page C4, under the headline “Mustang Controls designs new system,” Corey Grajkowski was mistakenly referred to as Cory Grajkowski.

On page C6, in the story entitled “Successful staffing in a tight market, Stacy Brownridge was mistakenly called Susan Brownridge.

We regret these errors and any confusion they may have caused.

PIPELINE NEWS February 2012

A13

hearings with a bang ɺ Page A12 Unfortunately, there are environmental and other radical groups that would seek to block this opportunity to diversify our trade. Their goal is to stop any major project no matter what the cost to Canadian families in lost jobs and economic growth. No forestry. No mining. No oil. No gas. No more hydro-electric dams.

These groups threaten to hijack our regulatory system to achieve their radical ideological agenda. They seek to exploit any loophole they can find, stacking public hearings with bodies to ensure that delays kill good projects. They use funding from foreign special interest groups to undermine Canada’s national economic interest. They attract jet-setting celebrities with some of the largest personal carbon footprints in the world to lecture Canadians not to develop our natural resources. Finally, if all other avenues have failed, they will take a quintessential American approach: sue everyone and anyone to delay the project even further. They do this because they know it can work. It works because it helps them to achieve their ultimate objective: delay a project to the point it becomes economically unviable.

Anyone looking at the record of approvals for certain major projects across Canada cannot help but come to the conclusion that many of these projects have been delayed too long. In many cases, these projects would create thousands upon thousands of jobs for Canadians, yet they can take years to get started due to the slow, complex and cumbersome regulatory process.

For example, the Mackenzie Valley Gas Pipeline review took more than nine years to complete. In comparison, the western expansion of the nationbuilding Canadian Pacific Railway under Sir John A. Macdonald took four years. Under our current system, building a temporary ice arena on a frozen pond in Banff required the approval of the federal government. This delayed a decision by two months. Two valuable months to assess something that thousands of Canadians have been doing for over a century.

Our regulatory system must be fair, independent, consider different viewpoints including those of Aboriginal communities, review the evidence dispassionately and then make an objective determination. It must be based on science and the facts. We believe reviews for major projects can be accomplished in a quicker and more streamlined fashion. We do not want projects that are

safe, generate thousands of new jobs and open up new export markets, to die in the approval phase due to unnecessary delays.

Unfortunately, the system seems to have lost sight of this balance over the past years. It is broken. It is time to take a look at it.

It is an urgent matter of Canada's national interest.

Building frenzy The Carlyle Ramada is moving along at a rapid pace, as of mid-January.

Photo by Brian Zinchuk

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A14

PIPELINE NEWS February 2012

A truck arrives with a mixing tank to be used at XL Fluids’ new Arcola facility.

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By Brian Zinchuk Arcola – An old, unused auction mart on the south end of Arcola’s Main Street is being reborn, thanks to XL Fluid Systems (‘XL Fluids’).

XL Fluids is a drilling fluid service and supply company with extensive technical expertise in Western Canada and Northern United States.

XL Fluids is a division of Secure Energy Services. XL Fluids and Marquis Alliance Energy Group Inc. were both acquired within a month of each other by Secure Energy Services last summer and combined, now making up its drilling fluids division. Marquis Alliance had previously rented space in Estevan. Now, operating locally under XL Fluids, operations are being consolidated in Arcola.

The Arcola distribution facility is now XL Fluids’ fourth facility servicing the Saskatchewan market.

Secure’s website noted XL Fluids was purchased for $37 million, including shares and $18.5 million cash. Marquis Alliance Energy Group was

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purchased for approximately $131 million which was paid by issuance of common shares of Secure and the payment of approximately $65.5 million in cash.

Devon Hanson, who grew up north of Alameda, was president of XL Fluids when it was independent, and is now vice-president of operations for Saskatchewan and Manitoba. The company is based in Calgary.

The company services an average of 20 to 30 drilling rigs in the region, Hanson said. “We’ve been [operating] down there for seven years.”

“A big part was location,” he said, when asked why they chose Arcola. “It’s close to the Manitoba border. There’s lots of work out there. Sixty per cent of the rigs we’re servicing are within 40 miles.”

They were also able to find local people willing to work. He added it was important to take the business where it matters. In a small town, they are able to have a larger impact. ɸ Page A15

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PIPELINE NEWS February 2012

XL Fluids Arcola branch manager Lloyd Cancade stands before the former aucƟon mart that is being reborn as a drilling Ňuids warehouse.

The caƩle holding area will soon hold drilling mud instead.

A15

ɺ Page A14 Plans are for four people to work in the warehouse.

That’s in addition to the 12 mudmen already working in the area.

By renovating an existing building, they were able to get a substantial space for a good price, within a much shorter timeframe than building new in a centre like Estevan. The building was acquired in November 2011, and operations started in late January. When Pipeline News visited on Jan. 13, the office area was being drywalled, and a large mixing tank arrived by truck.

The facility has been retrofitted into a 20,000 squarefoot cold storage and distribution facility and sits on about eight acres of land. Adjacent to the large warehouse is a 7,000 square-foot heated storage space with offices. One portion of the building has new siding, while the other part has been painted. New doors have gone in.

What was once an eyesore is rapidly looking new again.

Finding tradespeople has been tough, and some of the demolition work took longer than expected, as elements like the loading ramps and bleachers were strongly built.

Asked if they planned a lab for Arcola, Hanson said “We’ve got an extensive lab in Calgary. We’ll see. As of right now, no.”

XL Fluids’ products are produced and blended in Nisku, Alta., and distributed from there. Generic items, like gel and sawdust, come from third party providers.

The broader company services over 100 rigs at a time, according to Hanson. That would comprise roughly one-eighth of the Canadian drilling fleet, including active and inactive rigs. They have around 105 employees in the drilling fluids division of Secure Energy Services.

“We’re going to put up an invert tank farm, and a slick water tank farm as well,” Hanson said. “We’re going to run a hotshot truck and get a couple of trucks going.”

The company has already acquired 25 van trailers and is having them serviced at a local garage in Arcola.

“We’re probably going to have to go to 30 or more, and probably eight hiboys,” Hanson said.

A16

PIPELINE NEWS February 2012

PIPELINE NEWS February 2012

Key component hoisted into place at Boundary Dam CO2 project An excavator drags the U-shapped saddle from under the CO2 stripper, suspended in mid-air.

This is the point of no return.

It took roughly 20 minutes to liŌ the massive CO2 stripper and place it on its foundaƟons.

Workers use a manliŌ to adjust the rigging.

A worker on the high steel is dwarfed as he watched for clearance as the CO2 stripper slides by.

By Brian Zinchuk

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Estevan – Its transport to Estevan required several trucks pulling and pushing and more wheels than you could shake a stick out. Its placement required the usage of one of the largest cranes in the province. And without it, the whole Boundary Dam carbon dioxide capture project could not happen.

The massive carbon dioxide stripper is a key component of the $1.24 billion carbon capture project underway just south of Estevan. It was manufactured by KNM Process Equipment at Tofield, Alberta, 64 km southeast of Edmonton. It is 135feet long, with a diameter of 26-feet. The weight is just above 250 tons, including rigging. It is roughly one-inch thick.

Lifting it required two massive Manitowoc cranes, a Manitowoc 18000 and 2250 rated at 650 and 300 tons respectively in the manner they were configured. The cranes came from All Canada Crane, while ES Fox, the structural steel contractor, handled the steel work.

Gary Cooper, construction manager for SNCLavalin, explained how it works. “A process fluid goes in, and this strips the CO2 from the process fluid.”

Steam goes in to accelerate the process.

The lift was delayed several days due to wind conditions. But on Saturday, Jan. 7, the conditions were just right, with very little wind and a bright sun.

The 18000 was at the south end of the vessel, close to where the final placement would be. The 2250 was at the north end.

Lifting together, they hoisted the vessel several feet, allowing the blocking to be removed. It was then lowered so the U-shaped saddles could be released. Once those were clear, the lift could begin in earnest. Activity that had been taking place on other areas of the structure was curtailed while the lift took place.

As the 18000 lifted straight up, the 2250 slowly crawled on its tracks, carrying what would become the bottom of the vessel towards the top as the up-

per end was raised. Soon it went from horizontal, to 45 degrees, to vertical. The 2250 was then cut loose, and moved out of the way to the north.

Workers positioned high in the steel framework of the building watched at the 18000 slew to the right, lifting the massive vessel over installed hardware on the ground, before lowering it into position.

Once it was checked out and the bolts to the ground secured, the 18000 was cut loose.

Bob Turczyn, SaskPower’s construction supervisor for the project, said, “The lift went very well.

They did a lot of pre-planning on this job. It went smoothly.”

He added, “It’s a tight fit.”

Cooper said, “It went very well, as planned. It’s in place, bolted down, and the crane is unhooked.”

The lift took a little over four hours from start to finish.

The next phase of the project is continued work on the structural steel. Work on the modularized sulphuric acid plant was also taking place in early January.

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A17

A18

PIPELINE NEWS February 2012

CAPP supports Oliver's call for federal regulatory reform (Nickle’s Daily Oil Bulletin) The Canadian Association of Petroleum Producers says it welcomed and supports federal Natural Resources Minister Joe Oliver’s call for regulatory reform to improve the federal government’s project review process, which Oliver described as “slow, complex and cumbersome.”

CAPP president Dave Collyer said the existing federal regulatory framework imposes conflicting requirements and creates complex, uncoordinated processes for the review of projects. This cumulative regulatory burden is too often characterized by duplication, delays and incremental costs that

undermine economic viability without contributing to better environmental protection.

“The three broad themes that must underlie regulatory reform are balancing environmental and economic considerations, improving governmental co-ordination, and tightening process timelines and effectiveness,” Collyer said. Regulatory competitiveness is key to Canada’s oil and gas industry attracting investment capital, growing employment and the economy. Concerted broadly based regulatory reform is required to advance Canada’s competitive position. Regulatory reform represents a significant opportunity to improve competitiveness while en-

Midwest Surveys could be found working near Vortex Rig 2, just outside of Carnduī, on Jan. 9.

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“It is important to look for ways to reduce administrative burdens on both the public and private sector while improving environmental performance and providing companies with efficient, timely and predictable regulatory processes,” added Collyer.

“Such an initiative requires scope and reach across federal departments and co-ordination with provincial governments.”

In his open letter, Oliver said: “We believe reviews for major projects can be accomplished in a quicker and more streamlined fashion. We do not want projects that are safe, generate thousands of new jobs and open up new export markets to die in the approval process due to unnecessary delays."

CAPP said it agrees with the natural resources minister that regulatory reform needs to be addressed with urgency as a matter of Canada’s national interest.

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A19

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A20

PIPELINE NEWS February 2012

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PIPELINE NEWS February 2012

Shifting Gears

One Woman’s Perspective on Life, Liberty and the Pursuit of Land Locations

By Nadine Elson “It was the best of the times, it was the worst of times…” is one of the most famous opening lines in English literature, in A Tale of Two Cities by Charles Dickens. I recently had a day that would qualify as “…the best of times, …the worst of times.”

My husband, Bruce, and I had taken a few weeks off work to have a holiday together. It had been 25 years since we had a holiday alone together without kids, dogs, friends, or other family members along.

What would a hot shot driver and her part-time hot shot driving husband do on holiday? Drive, of course.

Although we had arranged the time off weeks in advance, the destination was decided at the last minute by the weather channel method. We watched the weather channel a

few days before departure and headed off to the warmest area, hauling his Triumph motorcycle in a trailer.

We chose Carlsbad, California. It is on the coast about halfway between Los Angeles and San Diego. We headed off in high spirits and drove south and west through North Dakota, South Dakota, and Wyoming, noting with interest the oil well activity in all three states, particularly in the area around Williston, North Dakota.

Wyoming had several coal mines. We were amazed to see a six track railway system with three trains filled with coal going one way and three empty trains going the other at the same time. An Internet search confirmed Wyoming is a significant producer of coal. The Black Thunder thermal coal mine,

A21

The Fast and the furious located in the Southern Powder River Basin of Wyoming, opened in 1977 and for many years was the largest single coal operation in the world.

After Wyoming, we drove through Utah, Nevada and California to the coast and our destination of Carlsbad, California. We spent seven glorious days riding the Triumph in the California sunshine.

On the day we were leaving, Bruce had been packing up the extended cab of the truck. The parking lot was empty save for the motorcycle, the trailer, and the truck with both doors open and the end gate down.

I was in the motel room with the door propped open and the curtains opened, when Bruce came in to confer. He was going to go fuel up while I continued to pack. He left and I then heard the tires of a vehicle squeal and a crashing sound. I looked out the door to see our barbecue lying

in the middle of the parking lot.

Puzzled, I wondered what his rush was as I could hear our vehicle squealing through the parking lot to the entrance to the street.

I looked to the street and I saw the truck take the corner on two wheels and head in the opposite direction to the filling station. Then I saw Bruce running at full tilt in the middle of the street alongside the truck, but the truck soon pulled away from him.

It took long seconds to realize that he had not lost control of the truck, that in fact it was being stolen! It was the worst of times.

Within minutes, an officer was at the motel taking our statement.

He was most apologetic, saying that vehicles were not often stolen in Carlsbad. Bruce had actually left the motel room when he heard our truck start and saw it being reversed. What I missed was his dash to head off the person at

the entrance. His track and field training as a teenager stood him in good stead as he sailed over flower beds, shrubs and nearly caught up at the corner, running full tilt. He was fast and he was furious, but the thief got away.

But only for four hours! It was soon the best of times. The Carlsbad police called to say that they had found our truck and they had a suspect.

They were sending a squad car to collect us so Bruce could identify her. Yes, the thief was a woman.

Bruce positively identified her. Last we saw, she was heading to be booked in handcuffs.

The police were nearly as happy as we were. It was unheard of to have our vehicle found in that short a time and without damage, they said. It was a miracle.

Our truck was returned to us minus all the personal effects we had already packed. We lost our cellphones, GPS,

binoculars, disc player, CDs and camera. She got the six bottles of California wine I was bringing back, my new books to read, the book light, the travel pillow, and, most annoying of all, my winter boots rated to be warm to -40. I am sure that someone will use the boots in California. Perhaps on the beach? Even losing those items, it was less trouble and cost than trying to get home without our truck or having a total loss.

Thank God miracles still happen!

Nadine lives in Estevan, with her husband and family, and works as a hot shot driver in the oil patch regularly delivering goods in and around Estevan and Shaunavon, and Sinclair and Waskada, Man. Her mission, beyond delivering the goods quickly, is to have every interaction be a positive one. She can be reached at missiondriver@hotmail.ca.

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PIPELINE NEWS February 2012

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A23

PIPELINE NEWS February 2012

PetroBakken drilled 293 wells in 2011

Just under half of PetroBakken’s producƟon comes from its Bakken business unit. File photo

(Nickle’s Daily Oil Bulletin) PetroBakken Energy Ltd. announced Jan. 12 that average production for December 2011 (based on field estimates) exceeded 50,000 bbl. of oil equivalent per day (87 per cent light oil and NGLs), a 23 per cent increase over third quarter 2011 production and an 18 per cent increase over December 2010 production.

The company said it remained active in all business units into December, with field operations tailing off through the end of the year as the capital program was completed ahead of schedule.

December average production of over 50,000 boepd was comprised of more than

23,400 boepd from the Bakken business unit, over 16,500 boepd from the Cardium business unit (with 1,450 boepd shut-in as of Jan. 12, awaiting tie-in operations), and the remainder of the production generated by the company’s Saskatchewan conventional and Alberta/ British Columbia (AB/ BC) business units.

During 2011, PetroBakken drilled 293 (205 net) wells.

Fourth quarter activity saw a total of 82 (54 net) wells drilled, with 23 (16 net) wells drilled in the Bakken, 34 (22 net) wells drilled in the Cardium, 21 (12 net) wells drilled in the Saskatchewan conventional business unit and four (four net) wells in the AB/BC business unit.

At the end of the year, the company had an inventory of 15 net wells waiting to be completed or placed on production. Of these wells, one was in the Bakken and eight wells were in the Cardium, with the remainder in the Saskatchewan conventional and AB/ BC business units. Of particular note, two new prospect wells in Alberta have tested commercial quantities of light oil with the other two wells awaiting completion and testing operations.

The company anticipates capital development expenditures of approximately $700 million, primarily focused on horizontal drilling and completions, predominantly in the Bakken and Cardium light oil plays (It expects that this drilling-focused activity will generate a 2012 exit production rate of between 50,000 and 54,000 boepd. Esti-

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PIPELINE NEWS February 2012

Bakken paper prepared for SPE This pipe shows mild scale deposits on the inside.

Estevan – The Bakken play has definitely drawn the attention of the world, including that of global companies seeking to take part in it.

One of the benefits of joining a large multinational company is the level of expertise it brings. For Estevan’s Prairie Petro-Chem, acquired last year

by Clariant Oil Services, some of that experience comes in the form of Jubal Slayer.

Slayer is currently in a Masters engineering program with Robert Gordon University of Aberdeen Scotland. With a BSc degree in biological science, the product of Virginia has worked around the globe, from Europe and the North Sea to Africa and Trinidad.

Slayer has been in Canada for six months, part of a two year deployment with Petro-Chem. His role is to assist the company as well as learn from it.

He noted Prairie Petro-Chem has a large market share locally, is very keen on customer service and is committed to adding value to its customers’ operations through a program of continual innovation.

“I’m currently writing a paper on scale in the Bakken play, and will present it at the Society of Petroleum Engineer’s International Conference on Oilfield Scale in Aberdeen this May,” he said.

Slayer said the paper is more of an introduction to the Bakken play for the Society of Petroleum Engineers (SPE) in Aberdeen. There are not many papers on scaling in the Bakken, he noted. The focus of the paper will be to bring attention to the Bakken play and what Prairie Petro-Chem has done in the past, as well as how the company is adapting to the future.

“We want to talk about the challenges we face, and what parameters we see,” Slayer said.

Those parameters include high calcium content, i.e. 3,000 ppm of calcium; bottom hole temperatures in the 80 to 90 C range; pressures around 6,500 kiloPascals; depths around 1,600 metres and APIs ranging from 37 to 44.

“The high calcium is the challenging part,” he said.

“We’re dealing with it quite well, but I don’t think, on a global aspect, the Bakken is as well known as the North Sea or Gulf of Mexico.”

A similar paper has been written for the Bakken south of the border, but not for Canada, he said. As for the differences, he noted, “Temperature definitely has an effect on scale.”

Northwest North Dakota is known as the “kitchen” of the Bakken, with higher temperatures compared to the rest of the play. ɸ Page A25

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PIPELINE NEWS February 2012

A25

Jubal Slayer, a Masters student who is working with Prairie Petro-Chem, holds up an example of scale.

ɺ Page A24 Scale is hard deposits made up almost entirely of calcium carbonate that forms inside pipes.

“Approximately 98 per cent of the scale we see in the Bakken are free ions, or calcium carbonates,” Slayer said.

Calcium carbonate is the prime constituent of traditional chalk, and the principle cause of hard water. An example of scale would be the solid particles that clog your shower head.

Scale is water soluble. As such, it is not much of an issue in “dry oil,” oil with low water content. However if you have free water in your pipeline, it will most certainly promote the formation of scale. The oil-soluble equivalent would be wax, also referred to as paraffin.

Scale principally forms from the bottom hole to the treaters, where the water and oil are separated.

Scaling also raises the pressure as the same volume is pumped through a smaller hole, much like high blood pressure in clogged arteries. “If you have a high pressure increase, you might be scaling. It’s definitely a red-flag indicator,” he said.

Analyzing water chemistry is another way of detecting scale. “Your customer might request a scaling tendency,’” Slayer said. “There are modelling programs that will show a chart of mild, moderate or high scaling tendency, depending on the pH of the water. With a very acidic pH level, such as four, you won’t have many scale issues.”

In regards to Bakken oil, he noted it has shorter hydrocarbon chains compared to heavier crudes. Within a few months of production, you may start to see a well scaling up.

One of the ways to treat scale is to administer what is known as a scale squeeze. “You push a pill of converter into the formation, let it sit for 24 to 48 hours, and then you start flowing again,” he said.

This process is often done with a pressure truck, as a certain volume of water is needed as a chaser.

“These squeezes can prevent scale formation for months at a time, eliminating downtime and ultimately increasing production,” Slayer said.

A more-common treatment method for addressing scale challenges is the continuous injection of a scale inhibitor, which is typically injected along with a corrosion inhibitor.

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A26

PIPELINE NEWS February 2012

Understand water to produce oil Estevan – Nalco may be a global company, but in Saskatchewan, it has a strong local presence and ties in the chemistry business.

There’s also decades of experience working on the ground.

Shane Boyes is senior account manager for southeast Saskatchewan and southwest

Manitoba. “I’ve been with Nalco for 22 years,” he said. “We’re the energy services division, oil and gas chemicals.”

“The majority of our work is in the Bakken, i.e. the Stoughton area,” Boyes said.

“Our focus is on water management. My personal belief is if you

can’t handle the water, you’ll never handle the oil.”

Much of their work is on optimizing water quality for disposal and/or injection.

“Because it’s so tight, water quality for Bakken waterflood is crucial,” he said.

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ewan Bakken indicated last year at the Saskatchewan Oil and Gas Show that they were moving full bore into waterflood for the Bakken.

“As with any formation, waterflood is a natural progression in the production cycle,” Boyes said. He feels it will be a growth area.

“Nalco has a number of unique chemicals that will maximize disposal and injection capacity,” he said. “If you have to dispose of 1,000 cubes (cubic metres) of water a day and your well can take 800, you have a 200 cube a day problem.”

That could mean trucking it elsewhere or upgrading pumps to handle increased injection pressures. If it was optimized, lower necessary injection pressures means reduced power consumption.

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can be oil carry-over and oil-coated solids resulting in near-wellbore plugging.

Nalco’s “Clean n Cor” is a patented technology which will allow for dissolution of plugging agents, Boyes said.

“Clean n Cor is used to solubilize the plugging agents and get increased flow into the formation,” Boyes said. “We can radically drop the pressure and increase the injection rate.”

Nalco offers a full gamut of oilfield chemistries in addition to Clean n Cor, Boyes said. Some of those products include corrosion inhibitors, demulsifiers, scale inhibitors, paraffin and asphaltene control programs and biocides.

Corrosion Corrosion comes under asset integrity, he noted. “The longer life you get, the better your return on investment. Nalco’s corrosion management systems serve to maximize the return on investment, in both the equipment and chemical program.

“The key to a successful corrosion management system is to recognize the corrosion mechanisms at work. Is it sweet corrosion? Is it sour? Is it cavitation or erosion?

“Once you understand the mechanisms,

understand the way to control the mechanisms, and understand how to monitor them, then you can put a program in place for control,” Boyes said.

In some cases, that can mean other metallurgy, like using stainless steel where CO2 is present.

“The final step is to monitor the program and provide the customer with data that shows your program is working,” Boyes said.

Some ways to do that include use of corrosion coupons, electrical resistance probes, water analysis and failure analysis.

“Wells are changing all the time. That’s where monitoring comes in. Parameters change.”

Boyes is based in Glen Ewen, but their supply dock is in Carnduff, home to a key business partner.

In southeast Saskatchewan, Nalco has had a close relationship with C&N Oilfield, who handles their delivery and application of chemical.

“We’ve worked with with C&N for over 20 years, and never had a reportable spill or a lost-time accident,” Boyes said.

“Within Nalco’s and our customers’ cultures of safety this is the type of partner you want to have.”

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A27

New secondary containment option

This new secondary containment system, made by Quest Containments, uses a pin and wedge system for assembly.

Calgary – The Quest Group of Companies has launched a new secondary containment system.

The system has recently been granted a U.S. patent, and is patent pending in Canada.

“These are unique,” said Keith Grimes, vicepresident of business development with the Quest Group. Other companies in the group include Quest Data, Quest Measurement, Southeast Rentals and Acutec Systems, to name a few.

These units are made of galvanized steel and use a pin and wedge system for assembly. “You get a really

solid seal,” Grimes said.

“Wall panels go together with a hammer.”

As such, they are easily expandable, he said.

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Quest Containment makes walls, but not the liner. “We let others who are experts handle that,” Grimes said.

“We got into this just last summer,” Grimes said, noting they had some units at the 2011 Weyburn Oil Show.

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A28

PIPELINE NEWS February 2012

Nordic plans a busy Àrst quarter Winnipeg – Nordic Oil and Gas Ltd. will be busy in the first quarter of 2012 with projects planned or on the go at six different oil and gas properties in Manitoba, Saskatchewan and Alberta.

The Winnipeg-based junior oil and gas company plans to drill the first of four wells on a quarter section of land it recently acquired in the Virden, Man. area to test for Bakken light oil.

Valentine’s Day February 14

Downtown Estevan D

The drilling will follow the interpretation of two lines of seismic it purchased with the property.

Nordic also plans to re-complete the failed acid job on a well drilled in December 2010 in the Preeceville/Endeavour area of eastern Saskatchewan to prove a tight oil discovery.

In addition, the company is licensing the drilling of a shallow gas well to prove up a shale gas discovery in the same area.

In the Weyburn area, Nordic is in the process of licensing a new well to test the Bakken formation for light oil with the expectation this will lead to a drilling project of up to six wells on the newly acquired land in the area.

Nordic has completed its seismic activity on a new heavy oil well in the Lloydminster, Alberta area where the company has a one-third interest in 16 heavy oil wells and a 100 per cent interest in one gas well.

The company reported in mid-December that the processing and interpretation would be completed shortly to survey the best drilling location for the new well to be licensed soon.

At Drumheller, Alta., Nordic plans to drill four to six strat test wells to test the lower Horseshoe Canyon coals for the viability of an underground coal gasification project through its 50 per cent owned subsidiary, Green Coal Canada Ltd. Nordic reports the initial interpretation from existing project logs is very favourable. In addition, the company is moving ahead with plans to find a buyer for its coal from a planned area coal mine which has significant amounts of recoverable coal.

Furthermore, Nordic plans to select a dedicated team of professionals to implement Green Coal Canada’s objectives.

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PIPELINE NEWS February 2012

Legacy increases capital budget In December Legacy Oil & Gas Inc. increased its 2011 capital expenditure budget to $323 million (not including capitalized general and administrative costs) from $254 million.

The increase is designed to continue the operational momentum and sustained higher production into the first quarter of 2012 and to accelerate the construction of a number of facility and infrastructure projects to help mitigate the effects of spring break-up, said the company.

Approximately two-thirds of the increase is designed to ensure that first quarter 2012 production averages at or above the 2011 exit rate production.

Due to operational success at each of its operating areas, Legacy also increased its 2011 forecast exit rate to 16,250 boepd

from the previously announced 15,750 boepd.

Legacy’s first Rundle horizontal light oil well in a multi-well drilling program in the Turner Valley area has been completed with a multi-stage acid fracture stimulation.

Its current production rate is in excess of 225 boepd. The well had been on production for over three weeks

by Dec. 20, and while still recovering load fluid, has demonstrated strong fluid production rates and continually improving water cuts.

These results confirm Turner Valley as a growth area which will form a significant portion of its 2012 capital expenditure program which is expected to be approved and disclosed in late January 2012, said the company.

Legacy continues to be active in the area and expects additional well results in early 2012.

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January 2012 not only had very liƩle snow for the Įrst half of the month, but also some glorious sunsets. These pumpjacks are north of Glen Ewen. Photo by Brian Zinchuk

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PIPELINE NEWS February 2012

Desk and Derrick tour ExecuƟve head chef Dave LeBlanc, centre, explains how sandwich orders are taken the night before at the Estevan ATCO Lodge. LeBlanc, along with former Estevan lodge manager Dennis Ripley, were called out to set up an emergency camp at Slave Lake Alberta last year aŌer a wildĮre devastated the town. “In seven days, we were up and running,” he said.

Photo by Brian Zinchuk

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A31

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PIPELINE NEWS February 2012

PIPELINE NEWS

B-SECTION February 2012

A sneak peak: Saskatchewan Energy Training Institute

By Brian Zinchuk Estevan – In early January, the new Saskatchewan Energy Training Institute was nearing completion, with final fixtures and furniture being installed. Pipeline News was able to get a sneak peak at the facility on Jan. 12. ɸ Page C2

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PIPELINE NEWS February 2012

Finishing touches being done

Lab 1 is large enough to do fall-arrest training in.

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ɺ Page B1 A much more in-depth look will occur later this spring, when Pipeline News focuses on training for the April edition.

Judy Holzmiller, interim CEO of Southeast Regional College, the parent organization of SETI; Wayne Martin, facilities manager; and David Harazny, marketing co-ordinator led the tour.

Holzmiller is filling in as CEO for Craig Brown, who is on administrative leave.

Flooring on the large labs has not yet been installed. Martin explained, “We don’t want to commit to sealer, and then want a slate floor or vinyl.”

The building has in-floor heating and cooling throughout, but also has a forced-air system for circulation.

The labs have classrooms associated with them for the times when instruction is best done at a desk.

Lab 2 is still full of furniture, waiting to be distributed throughout the building.

Lab 3 is smaller, and may end up seeing use for an instrumentation or electrical program.

Lab 1 is the largest lab, with ceilings that are easily 50 feet high. It’s large enough that the fall arrest trailer can be brought indoors, especially useful during cold weather. The confined space simulator can also be brought indoors. There are large overhead doors to facilitate just that.

“It’s open, so many things can occur,” Martin said.

There’s a food services area. Initially it is not meant for on-site food preparation, but rather as a facility for caterers to bring in food for events. “We will be able to have soup and sandwiches,” Martin said.

Sharp’s Audio Video of Saskatoon and Calgary could be found in the circular auditorium, installing 70-inch plasma screens and speakers. The auditorium can accommodate up to 250 seats in a lecture-style configuration. It has exits that lead to a courtyard to the south.

Along the south side of the property, a line of sandbags can be found. One of the delays last year was water running through the construction site, including the building. The sandbags are there until drainage issues can be addressed by the City and RM of Estevan.

Another classroom will be primarily used for safety training courses, including first aid.

Power engineers are currently at the old campus, and will be one of the first programs moved over. Since it is a full-time course, they will have their own classroom.

Two classrooms will have teleconference capabilities. ɸ Page B3

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PIPELINE NEWS February 2012

B3

The auditorium can seat up to 250 people.

ɺ Page B2 Most of the classrooms are angular, with high ceilings. A striking amount of light comes in from the windows, no matter the location within the building.

There is a computer lab with for instruction on the second floor, and resource room on the main floor akin to a library. Near the main office is a dedicated room where testing of individuals is to be conducted.

“Obviously weather had an impact on construction,” Holzmiller said.

The project was substantially over its initial

completion deadline. When the project was announced, completion was expected at the end of March 2011. The federal government set a six month extension for funding, but the building still was not complete at that time. Yet no federal money was lost, according to Holzmiller.

Quorex of Regina was the general contractor.

“With any construction project, there’s higher hopes than what happens,” she said, adding the reality in keeping subcontractors was a challenge.

“That’s part of where we live.”

“We are at the established budget, or very

close to it,” Martin said.

Some things were cut, like a paved parking lot and some architectural features.

The first classes in the building were slated for Jan. 30, when power engineering moves over.

Other programs will move over in a progressive nature, so that by fall 2012, the transition should be complete.

“With breakup not far down the road, it will be our first big test,” Holzmiller said. From the last week of March until mid-May, 1,800 students are expected to make use of the school.

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B4

PIPELINE NEWS February 2012

Williston Basin Petroleum Conference expecting huge turnout

Thousands are expected to aƩend the Williston Basin Petroleum Conference. This was one of the plaƞorm sessions in 2010.

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By Brian Zinchuk Bismarck, N.D. – The last time the Williston Basin Petroleum Conference was held in Bismarck, North Dakota, it utterly shattered attendance records, attracting 2,750 delegates in 2010. Returning in May 2012 after it’s bi-annual visit to Regina, the conference could bring in as many as 4,000.

That’s according to North Dakota Petroleum Council vice-president Kari Cutting, one of the organizers.

“We are expecting 3,500, but are concerned it may be more like 4,000,” she said.

The event will take place a little later this year, from May 22-24. It will be held at the same venue as 2010, at the Bismarck Civic Centre. There will be 275 indoor and 20 outdoor exhibits. Cutting said they expected all those spaces to be spoken for in just a few hours, when they become available on Feb. 1. Registration will also be available on the same date, at $500 a head.

“We have more interest than room,” she said of exhibitor space.

The theme of this year’s conference is “Bakken Gold,” and adds the tagline “The best is yet to come...”

Originally focused primarily on geology, it has grown to be much more than that. The conference is held in conjunction with the Saskatchewan Ministry of Energy and Resources, who host the conference in Regina on alternating years. ɸ Page B5

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B5

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ɺ Page B4 The last time it was held in Bismarck, the state had about half of Saskatchewan’s daily oil production, running at 260,000 bpd in February 2010.

Now it has eclipsed Saskatchewan’s numbers, coming in at 510,000 bpd as of the mid-January 2012.

That’s a doubling in two scant years. North Dakota is on course to become the second-highest oil producing state in the union, soon to bypass both Alaska and California, and second only to Texas.

“It’s going to be a big conference and exciting times. A lot of CEOs will be there; at least a half dozen will be attending,” she said.

Pipeline News intends on attending this conference. Watch for extensive coverage appearing in our July 2012 edition.

On the Web: www.ndoil.org

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B6

PIPELINE NEWS February 2012

Chemical application explained

By Brian Zinchuk Carnduff – A combination of growth and changing demand has led C&N Oilfield of Carnduff to order three new pressure trucks in

January.

C&N is the largest operation of its type in southeast Saskatchewan, providing services to between 5,000 and 6,000 wells

a month. They specialize in chemical delivery and application. Their fleet includes 14 threequarter ton trucks, two flatbeds, and three pressure trucks. Three more

Kris Carley is operaƟons manager for C&N OilĮeld.

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pressure trucks are on order.

“We do everything but sell the chemical, said operations manager Kris Carley.

“We’re a third party applicator. We’re hired by the oil company to do this.

He explained there are six different processes used for the application of corrosion inhibitors downhole.

Corrosion inhibitors act by coating the metal surfaces inside a well. “The main

thing we’re trying to do is prevent corrosion in piping,” he said.

“Ninety-five per cent of our chemical business is corrosion inhibiting, while five per cent is paraffin and scale inhibiting.”

Most corrosion inhibitors are made with a methanol base and a chemical formulation added to it. “We’re the applicator. The chemical company will decide which products, how much, and how often.

They have formulas for calculating that,” Carley said.

“The main objective is to coat the inside of the tubing with inhibitor, like painting a wall.

“It’s like a film, a protective coating.”

That film may be just a few thousandths of an inch thick, he

noted.

The various methods of application have a common theme. The chemical goes down the annulus, reaches the pump, and then goes up the tubing, thereby coating the surfaces of the tubing.

“The main goal is to get the inhibitor to the pump. It has nowhere else to go, so it heads up,” Carley said.

Batching Batching the chemical is essentially pulling up to the well, tying onto it, and pumping a specific amount of inhibitor down the annulus. Typical volumes would be in the 20 to 40 litre range. Often these would be stored in drums and carried on a three-quarter ton pickup truck. ɸ Page B7

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PIPELINE NEWS February 2012 Éş Page B6 A number of oil companies will put a bulk tank at their facilities, i.e. battery sites. The chemical delivery company will ďŹ ll up these bulk tanks. “We’ll ďŹ ll, into drums, what we need for the day and go,â€? he said.

Circulating Circulating is similar to batching, except that the well’s own produced uid will be used to push the chemical down the well and mix it throughout. This is done by shutting in the production side of the well in and pumping the inhibitor down the “backside,â€? a closed loop which sends the produced uid back into the well via the annulus.

The well circulates for a given time. That can be anywhere from ten minutes to as much as eight hours, with an average circulation time of one to four hours being common. “This is still the most popular form of corrosion inhibitor application,� Carley said. “We’ve been doing it for 20-plus years.�

The drawback with

circulating is that it shuts down production from that well during the circulation time.

Circulating is very repetitive, and is often based on the amount of water produced. “We’re not trying to recoat the pipe every time we’re out there. We’re trying to ďŹ ll in the voids. It’ll re-adhere to the pipe.â€?

The initial batch for a well will often be two to three times the size of a maintenance batch.

Circulating is very common, according to Carley. “For us, right now, it’s probably 60 to 70 per cent of our work. This is bread and butter.�

C&N commonly uses three-quarter ton trucks for circulating.

Batch and ush The next process, batch and ush, requires larger capacity units. “That’s where we get the big trucks involved,â€? Carley said.

A batch and ush uses produced water to carry inhibitor down the well. The produced water comes from the same facility, and is something of a chaser to the chemical

application. For example, 25 litres of chemical may be chased down by 200 litres of produced water. “It’s their water. It comes from their facility and goes back in,� he said.

“We always pull the water from the tanks the wells produce into.�

Since a pressure truck is used to push the inhibitor down the well, the well’s own pump can

continue to produce oil, as opposed to circulating in a closed loop. Pressure trucks not only have the added power to pump into higher-pressure reservoirs, but can also

B7

carry the higher volume of water needed. “Production is never disturbed with a batch and ush,â€? Carley said. ɸ Page B8

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PIPELINE NEWS February 2012

Pipeline application makes use of pigs ɺ Page B7 Using this method results in fewer “battery upsets,” he said, compared to circulating. “When numerous wells are not producing, it changes the balances at the battery. Some facilities can handle it, and others just can’t.”

Carley explained facilities are set up to handle their usual daily production. By taking away incoming fluid when using the circulation method, there can be an upset. The result

is either dirty water or wet oil. “Basically you lose your level in your treater,” he said.

“With the batch and flush, we get fewer downhole problems. Gas locking is a big issue.”

Gas locking can occur when a well has been pumped down to the point where there is nothing to circulate, so a gas bubble locks up the pump.

“This process is growing in popularity,” Carley said, adding it has

been driving their need to add more units not only to service what they have, but what is coming down the pipeline.

Solution batching A derivation of the batch and flush is solution batching. Instead of sending chemical then produced water down the well, the chemical is added to the produced water in the truck. The motion of the truck provides the mixing action.

The result is a solution. For instance, 200

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litres of chemical added to 2,000 litres of produced water results in a 10 per cent solution. The chemical is water soluble.

This method has helped out in wells with lots of sand, where circulating was stirring up the sand and causing pipe erosion from the inside.

“It’s not as common a process. We have a couple of fields that do this. It’s probably five per cent of what we do,” Carley said.

Continuous injection Instead of periodic addition of chemicals, this system lets the well add a continual, low volume stream.

“The well does it.

The drums are on a stand, and pumped in with a beam pump or electric pump,” Carley said.

A beam pump is a small pump that has a cable attached to the walking beam of the pumpjack. The pumpjack then provides the power to the pump.

This method does not require the same sort of periodic applications, but does require chemical delivery. “We may deliver the chemical,” Carley said.

C&N Supply, the company’s supply store division, also sells double wall chemical tanks for this purpose. They range from 75 gallons to 1000 gallons in capacity.

This method is used a lot more on wells with a higher fluid level.

There are two methods of testing to determine if the inhibitor is getting where it is intended. The first is residual testing, where the

produced fluid is tested for corrosion inhibitor content.

The second is the use of a “corrosion coupon.”

“It’s a piece of metal in the flow of the fluid,” Carley explained, noting it’s typically placed in the lines near the well.

After a period of time, the coupon is pulled to see what sort of coverage is being obtained.

Pipelines For pipelines, application of corrosion inhibitors differs from wells.

“There’s still some old steel flowlines in the country. Almost all new ones are fibreglass,” he said.

One way of applying corrosion inhibitor to pipelines is to put in a “chemical pill. ” This process uses two pigs. The lead pig is a scraper. Behind it, the chemical is injected. The second pig is just slightly smaller, so that it leaves a thin film on the inside of the pipe as it travels. The fluid behind these pigs pushes them down the pipe.

As the pair of pigs travel down the pipe, they eventually come closer together as chemical is distributed.

“We’ve done from 100 yards to 110 kilometres of line,” Carley said.

That large project happened to be the recent EOG pipeline from Waskada to Cromer, Manitoba. C&N provided the initial corrosion inhibitor application, the trucks, and the three sets of eight-inch pigs.

Scheduling Looking after thousands of wells has

its challenges. “The wells we circulate have one, two, three, four, six, eight or 12 week intervals,” Carley said. “There are some wells you have to go back to every week.”

“We trust the guys to maintain their schedules, and follow up with monthly reports to both the chemical and the oil producers,” he said.

With thousands of wells and dozens of producing companies spread across hundreds of kilometres, the company relies on computerized scheduling. They also have decentralized operators, with trucks based in Estevan, Midale and Weyburn in addition to the home base at Carnduff.

A three-quarter ton may be able to get around to 20 wells on a good day, while a pressure truck can handle as many as 30 or even 40 when the going is good.

“You’re only at each well for five to ten minutes, and driving for five minutes, in ideal conditions, with no snow and no mud.” he said.

There can be complications like weather, however. The flooding of 2011 was particularly challenging. “Last spring we bought two Polaris side-by-sides and equipped them with tanks and pumps,” Carley said. “Twice we’ve batched with snow machines.

“It’s not much fun on snow machines” The proliferation of the Bakken has led to a growth market for C&N. “The Bakken is showing major signs of corrosion,” he said.

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B9

NAL focuses on light oil Corporation is planning a $200 million capital spending program this year, down from $246 million in 2011, with 85 per cent of spending allocated to light oil development opportunities in Alberta and Saskatchewan.

Incremental capital will be directed to other oil opportunities and high liquids-rich natural gas projects, primarily in the Deep Basin.

Spending will be increased to $79 million in NAL’s Cardium programs at Garrington, Westward Ho and Cochanre/ Lochend. The activity should add about 1,200 boepd on an annual basis.

Southeast Saskatchewan remains a core oil producing and cash generating area for the company but will be allocated slightly lower capital in 2012 to reduce the risk of wet weather interruptions experienced in 2011.

Lower risk development capital will account for 95 per cent of total spending, up from

84 per cent last year, as NAL will reap the benefits of significant investments in land and proof-of-concept drilling in 2010 and 2011.

NAL has allocated $170 million for drilling, completions and tie-ins with $10 million each for land and seismic, plant/facilities and other. The company plans to have an active first quarter, spending approximately 43 per cent of its full year capital in this period.

Plans call for 124 (62 net) wells in 2012, of which 95 per cent will be horizontals.

Of the total, 40 (24 net) are Cardium oil wells focusing on the existing Garrington/ Westward Ho core area along with a doubling of activity to 10-12 wells from six wells last year at the emerging Lochend (Cochrane) program.

Drilling for Mississippian light oil ($39 million budgeted) in southeast Saskatchewan will focus on encouraging results in the 2011 program at Oungre and Neptune with the drill-

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ing of 48 (24 net) wells, said Andy Wiswell, president and chief executive officer. A newly completed oil battery at Hoffer, which will be tied into the Enbridge Inc. pipeline system, is expected to facilitate more on stream time for oil production in the region that was significantly affected by wet weather in 2011.

The new 5,000 bbl.-per-day oil processing facility in the heart of the Hoffer pool in southeast Saskatchewan will help to improve the service factor by minimizing the number of down days associated with single well batteries and reducing operating costs to about $8 per bbl from $12 per bbl.

With fluid handling facilities now in place, NAL plans to proceed with a pressure maintenance scheme in the original pool through 2013.

The company also has enhanced the

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productivity of wells targeting the Ratcliffe formation with positive results in minimizing damage to the reser-

voir through the use of underbalanced drilling, said Dave Allen, director of exploration and development.

NAL has more than 100 risked locations in its Mississippian oil volumes in the area.

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B10

PIPELINE NEWS February 2012 John PreƩe demonstrates a demulsiĮer boƩle test in the Estevan lab. PreƩe is the upstream chemicals product line’s technical business development manager for Baker Hughes in Estevan. Photo by Brian Zinchuk

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DemulsiÀers demystiÀed

by Baker Hughes Estevan – Every mechanic has a 9/16 wrench. For battery operators, that wrench is a demulsifier.

Baker Hughes is the successor company to one of the pioneers in demulsification, and it’s still an important part of the business today.

It’s part of their widely diversified chemical products line.

John Prette is the upstream chemicals

product lines technical business development manager for Baker Hughes in Estevan.

“We do everything from demulsifier, scale inhibitors, corrosion inhibitors, H2S scavengers, biocides, iron chelators to many, many more,” he said. Those products are mainly on the water side, while paraffin and asphaltene inhibitors and dispersants are on the oil side.

“Most of these

Need more space?

deal with the problems arising from the production of water,” Prette said.

Providing some background on demulsifiers, Prette explained, “When oil exploration started in the southern U.S. in the early 1900s, they weren’t making water. They produced clean oil. Initially they buried emulsion in pits,” he said. ɸ Page B11

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B11

Chemist took shares in recovered oil Éş Page B10 Chemist William S. Barnickel knew he could use some chemistries to separate oil and water, Prette noted. Initially he didn’t invoice for the product, but rather took a share in the recovered oil. That led to the birth of the Petrolite Corporation, which eventually became part of Baker Hughes. The product was known as Tret-O-Lite. “There was Baker Performance Chemicals as well,â€? Prette added.

These two companies later merged, forming Baker Petrolite.

Tret-O-Lite “was the Kleenex� of the industry, he said, noting how its ubiquitous presence made the product name become something to an over-arching name. Described beampumps, he said, “Thirty years ago, they were Tret-O-Lite pumps, no matter what type of chemistry the pump was applying.�

The main product was initially a demulsiďŹ er, a chemical that causes oil and water to separate.

The uid coming out of an oil well is principally in the form of an emulsion. But what is emulsion? “An emulsion is a series of immiscible liquids that are dispersed into each other,â€? Prette said. “You can have water in oil emulsions, where the bulk phase is oil, and the water is dispersed.

It is our most common emulsion. “Our second most common is oil in water emulsion, which is referred to as a reverse emulsion. You’ll see a lot of it in SAGD with heavy oil because of the dierence in density. The closer the density is, the harder it is to treat.

Heavy oils are close in density to water. I’ve seen in the Seal Lake (Alberta) country where the density was virtually the same.�

In southeast Saskatchewan’s light oils, that’s not the case. “Bakken oil is really light oil, with really heavy water.

They don’t want to be together. Treating issues here are more often caused by iron sulphide,â€? Prette said. “Iron sulphides have a tendency to get oil wet, and hang out at the oil/ water interface in treating vessels. It can form scales around the ďŹ re tubes, or cause under-deposit corrosion on ďŹ re tubes or piping. It can cause fouling of injecting wells. “It’ll build up and form a pad of solids that water droplets can’t pass through,â€? he said, likening it to spraypainting a window screen. Eventually it becomes blocked. “It’s a big problem. We’re doing a lot of work with it. It’s associated with the Bakken. There’s a lot of dissolved iron associated with Bakken brine. It can range from 10 to 1,000 parts per million. When our customers frac out

Serving the Southeast Saskatchewan oilďŹ eld industry since 1994.

of zone and produce H2S, that’s where we see problems,� he said.

Prette added there can be biogenic problems as well. Sulphurreducing bacteria’s waste product is H2S. Sulphur-reducing bacteria and acid-producing bacteria are the most damaging strains, he said. Bacteria can cause problems with wateroods, forming a biomass which can plug injectors.

So how does one separate the oil and water in an emulsion? “Basically, all emulsions will resolve over time,� he said, but that timeframe can be long. Mayonnaise, he used as an example, is an emulsion and will eventually separate. But it

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takes a long time.

There are three main factors in treating emulsions: heat, chemicals, and time, Prette said. “Heating moves your droplets around and they collide. Water droplets are coated with resins or iron sulphide. DemulsiďŹ ers reduce the surface tension on these water droplets so that when they collide, they form large droplets, large enough to fall out. “They thin that ‘crust’ so that the shell (of the water droplet) will rupture due to the decrease in surface tension. “Heating also reduces the viscosity of the crude oil.â€? ɸ Page B12

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PIPELINE NEWS February 2012

Heat, chemicals and time ɺ Page B11 Prette noted, “When you change one of the parameters, you have to adjust something else. For less time, you may need more chemical and heat.”

There are limitations to how much heat can be applied, however, as the oil must be under a certain temperature, i.e. 40 C, to ship.

“There have been a lot of changes over the years,” Prette said. “The majority of discoveries in research come from Northern Alberta, with SAGD, CHOPS and heavy oil.”

SAGD is steam assisted gravity drainage, while CHOPS is cold heavy oil production with sand.

“The demand is so large, that that’s where the research dollars go,” he said, adding innovations then cascade through the industry.

“Some of the challenges are finding the right combination of products that will remain stable in

cold weather, and on the shelf.

A demulsifier is an every-day tool. But unlike a one-time purchase like a wrench, it’s an ongoing expense, requiring a cost-benefit analysis.

“It’s hard to capture the cost of doing nothing,” Prette said. “What would be the cost to the producer if they don’t apply the products? That’s true of any of our products.”

He pointed out if you’re not shipping oil as a result, there’s a cost, too.

In Saskatchewan and Manitoba, he noted, “We don’t have blend plants, but we do have labs in Estevan, Swift Current, Lloydminster, Kindersley and Virden.”

These local labs allow for demulsifier, paraffin and asphaltene product selection.

“We can do basic scale inhibitor product selection. We’ll do some pre-screening for corrosion inhibitor selection. Bacteria-kill studies

will be done at local labs. Higher-level analysis is done at our Calgary lab. Our real-high level research happens in Houston and at Kirkby in the U.K.,” Prette said.

While some tests are possible in the field, he said it’s best to bring samples into a lab to properly simulate the systems being tested. “To engineer a bottle test, we want the replicate the system as best as we can.”

Safety culture John Prette talks of Baker Hughes’ “interdependent safety culture.”

Prette is the upstream chemicals product lines technical business development manager for Baker Hughes in

Estevan “That’s what we are striving to develop – an interdependent safety culture,” he said.

“Priorities change. Safety is cul-

ture. We all work together to keep each other safe.”

Some examples of this are the requirements of full face protection when working with chemicals in the field, a back-in policy with vehicles, and the extensive fire suppression system built into the Estevan warehouse. A geotrack system is also being implemented in trucks now.

Baker Hughes’ Estevan warehouse has an extensive Įre suppression system. These chemicals are primarily corrosion inhibitors.

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PIPELINE NEWS February 2012

B13

FSIN says government selling out our environment to industry Saskatoon - The Federation of Saskatchewan Indian Nations (FSIN) is gravely concerned about the new Saskatchewan Environmental Code and the review process attached to it which was announced by the minister of Environment on January 11, 2012. Under the new code a resource development company will be allowed to conduct its own environmental assessments and unilaterally determine the impacts their proposed resource development project will have on the environment without any on-theground scrutiny by the provincial government.

The FSIN has criticized the code development process since 2008 and the lack of consultation with First Nations from the onset. A 320 page technical review on the results based regulatory framework which subsequently led to the code was submitted to the provincial government in February 2010 with no follow-up from the province.

“The new Environmental Code will give industry a free pass on assessing the environmental impacts of their own resource development projects.

This makes no sense,” says FSIN Vice Chief Bobby Cameron, “It can be compared to when you build a house. The

government protects the consumer by requiring inspections on every step of the construction of the home. In comparison what this new law does is allow the home builder to inspect and approve their own work and allow the construction of the home to proceed to completion without any scrutiny. The government will only inspect the work after the fact. There is no way to protect the consumer from faulty construction.

Under this new code the government steps in after the fact in similar fashion.”

The FSIN noted that under the old law, a natural resource developer was required to get a permit for every aspect of their development – meaning that they could not proceed to the next stage of their development until after government sees that they complied with the conditions of that permit. When they comply, then, and only then would they receive the next permit.

Government had the capacity and people on the ground to do this work.

Under the new law, the resource developer can proceed further down the stages of their development without this scrutiny, therefore, a resource developer could potentially do damage to the environment without government becoming

aware of the damage until after the fact, the FSIN said. The government is now looking to the resource development companies to staff and have the capacity to do the environmental screening and compliance.

As an example, the FSIN said a company could unilaterally approve and create a tailings pond that doesn’t properly contain the contaminants from leaching into the ground water sources.

This would have been prevented under the old environmental law – under this new law this is a real possibility.

The government is in such a hurry to invite resource development companies to conduct business in Saskatchewan that foreign companies are actually dictating environmental policy in Saskatchewan, the organization said.

“That’s like putting the cart in front of the horse,” said Cameron.

“Premier Wall needs to show leadership on protecting the environment like the way he showed leadership on protecting the potash industry in Saskatchewan.”

The government allows only three days to review and comment on the new. Code, despite the constitutional legal obligation they hold

to consult and accommodate the Treaty and inherent rights of First Nations.

The Federation of Saskatchewan Indian

Nations represents 74 First Nations in Saskatchewan. The Federation is committed to honouring the spirit and intent of treaty,

as well as the promotion, protection and implementation of the treaty promises that were made more than a century ago.

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B14

PIPELINE NEWS February 2012

Level Best Crane outÀt attracted to Saskatchewan Technologies Ltd. Estevan – Two massive cranes lifted a huge ves• Fluid Levels • Dynamometers • Build-Ups • Fall-Offs • Foam Depressions • Casing Compressors Dave: 306-461-4322 Pat: 306-861-9986 Josh: 306-461-4323

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Pete Harris has been on cranes for over 30 years. Here he supervised the liĹŒ of the largest component of the new carbon capture project at Boundary Dam Power StaĆ&#x;on.

sel into place at the Boundary Dam Power Station on Jan. 7. Both were supplied and operated by All Canada Crane, an new entrant to the Saskatchewan construction market.

ALL Canada Crane established a presence in Saskatoon at the end of 2011. Pete Harris, a longtime crane operator with over 30 years experience on projects through Saskatchewan and the rest of Canada, is the branch manager. He was present at the Estevan lift.

They are currently renovating a building to meet the company’s needs. It’s located on the north end of the city on Cory Lane, just outside Saskatoon in the RM of Corman Park.

Asked what sort of iron they have available, Harris said, “Whatever’s necessary. If we have to put 100 units here, we will. Right now we have these two, a 100-ton crawler, an 80-ton, and 90-, 100- and 150-ton rough terrains. ɸ Page B15 HEAD OFFICE: MEDICINE HAT PH: 403.504.0678 FAX: 403.504.0768

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PIPELINE NEWS February 2012

B15

One doesn’t realize how truly massive a Manitowoc 18000 is unƟl you see several workers beside it.

For the Boundary Dam lift, the 18000 was brought in, assembled, performed the lift, and just as quickly disassembled. That six-day process is repeated even for wind farm construction, where numerous wind turbines can be installed in close proximity to one another.

The same model of crane was also seen working at the Co-op Regina Refinery Complex in 2010, albeit with

ɺPage B14 Several units are working at Mosaic’s potash mine at Colonsay.

ALL Canada Cranes & Aerials consists of the ALL Canada Crane Rental Corp. and ALL Aerials Ltd. The two companies operate independently under one roof, currently headquartered in Mississauga, Ontario, with each having its own staff and fleet of equipment.

“We are a crane rental company, and the largest privately held crane rentals and sales operation in North America,” Harris said.

“We have cranes from 2.5-tons to 1000tons, in every catecory.

“We’re going to

break in to everything here,” Harris said.

“We’re fully geared to do whatever we have to, as far as hoisting is concerned.”

For the big lift at Boundary Dam Power Station, Glenn Carr operated the Manitowoc 18000, while Ernie Eickle took care of the Manitowoc 2250.

Elsewhere on the site, Darren Gaumgardener

operated the 100-ton crane, while Sheldon Gilcrest was the apprentice operator.

Deb Harris, Pete’s wife, is the safety coordinator.

ALL Canada is a union shop, with its operators in Saskatchewan working under International Union of Operating Engineers Local 870.

“We’re also a dis-

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The larger crane was configured for 650 tons for the SaskPower lift, but is capable of much more.

“This 18000 can lift up to 825 tons. It is ideal for bridge work, powerhouse, wind farms – any project needed extreme capacity,” he said.

a different company.

It’s so large, the tracks are 6-feet, 10-inches tall. The MAX-ER, an added counterweight with giant wheels, adds to the capacity.

Asked why set up in Saskatchewan, Harris said, “There is a need here to fulfil the hoisting requirements while maintaining the upmost safety practices in the construction industry.

“There’s a demand here.”

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B16

PIPELINE NEWS February 2012

PIPELINE NEWS February 2012

B17

Industrial park coming together east of Estevan Story and photos by Brian Zinchuk Estevan – Several earthmovers could be found scraping topsoil east of Estevan in early January. Excavators sat on top of large berms of topsoil that had been scraped by dozers. That topsoil was then loaded onto rock trucks and moved to the edge of the property.

And so comes into being the RM of Estevan’s newest industrial park, called the Bypass Industrial Park. It is located on a mile north of Highway 39. It is on the east side of the road destined to be the new truck bypass.

Work on the front portion was done last year, including the construction of a road. Now the back portion is being landscaped.

“I’m turning it into a light industrial property,” said owner Gary Stevens.

There are 160 acres in the subdivision, with 16 titles of varying sizes, from five to 26 acres. And unlike other industrial parks, they are installing their own sewer system. It’s a high-tech system, and the wastewater, after treatment, can

be reused for places like wash bays. As for what’s left, the RM has granted permission to pump it into the mine corridor directly behind the site, to the east.

A water pressure booster will be added to the incoming water line, providing a full 80 psi.

Three lots are sold, and several more are pending. “It don’t think it’s going to take long,” Stevens said.

It’s hard to miss the high-voltage power lines that bisect the property. That shouldn’t be too much of a problem, though, since the main lot affected by it will be used primarily for self-storage and cold storage. All the lot fronts are clear of the power lines, he added.

Stevens is originally from Mayerthorpe, Alta. He purchased the property from an Estevan local four years ago.

“Thing are just starting to bust loose now,” Stevens said.

One of the major holdups for demand has been the delays in the bypass

construction. It was initially announced in the 2008 provincial budget, at the same time Yorkton’s bypass was announced. But while Yorkton has already seen the first two phases completed, Estevan’s has yet to see dirt scratched due to issues regarding the west end of the bypass.

“They tell me 2012,” Stevens said of the Ministry of Highways, who have entered discussions with him on taking several acres along the west side for the bypass route. “I’ve been dealing with them for quite a while,” he said.

Borealis Global Energy Services Inc. is partnering on the development and assisting with the promotions. Among the company’s offerings are camp services.

“A big part of what we are doing is trying to put money back into Saskatchewan, not just make it and run away,” said Ian de Bie, founder and president of Borealis.

“We’ve got camps and we’re looking at two more,” Stevens said, although where those will go has yet to be determined. Current operations include a 16-man VIP camp at Flaxcombe, 57-beds at Kindersley, and another 42 at Denzil.

At Kindersley and Denzil, they specifically did not include food services, so that the local restaurants would be able to see increased business.

Borealis has additional 40 and 60-bed camps ready to roll, he said.

Stevens said they had approval to put a camp on the Estevan site a year ago, but they did not go ahead at the time.

The company also has a guiding operation called True Bird Dreams, which is useful for promotional purposes.

“We deal with a lot of oil companies with Borealis,” Stevens said, adding they are getting calls for camps for different towns.

This bulldozer has been scraping topsoil to make way for an industrial park development near the city of Estevan.

Insert: An excavator loads rock trucks with topsoil.

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PIPELINE NEWS February 2012

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Enbridge donates Enbridge presented $7,500.00 on Jan. 17 to the Lampman Fire Dept. “This is part of Enbridge’s Safe Community program where we help communiƟes that our pipelines run through or near stay safe,” said Lindsey Roy, team lead, land and right of way for Enbridge Pipelines (Sask) Inc. From leŌ to right are Dena ScoƩ, volunteer Įre Įghter and Įrst responder; David Paxman, Lampman Fire Dept. chief; and Trevor Deren, Steelman Area coordinator Enbridge Pipelines (Sask.) Inc. making the presentaƟon on behalf of Enbridge.

Photo submiƩed

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PIPELINE NEWS February 2012

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This river crossing in North Dakota is part of Enbridge's eīorts to expand its takeaway capacity in the state. Photo submiƩed.

Established since 1973

Enbridge announces Bakken rail project Enbridge continues to expand its energy delivery infrastructure in the rapidly growing Bakken region. On December 22, 2011, the National Energy Board announced its approval of the Bakken Pipeline Project Canada. The Project will extend an existing pipeline running from Berthold, North Dakota to Steelman, Saskatchewan by constructing 124 kilometers (77 miles) of 406 mm (16-inch) diameter pipeline to transport crude oil between a new Bakken Pump Station, near the existing Enbridge Westspur Steelman Terminal, and the existing Enbridge Pipeline Inc. Cromer Terminal, near Cromer, MB. The U.S. segment of this pipeline is currently owned by Enbridge Pipelines (North Dakota) LLC (EPND), a subsidiary of Enbridge Energy Partners, L.P. In addition to the 124 km of new pipeline, the proposed project scope also includes the installation of a pump station and associated equipment, utility upgrades at the Steelman Terminal, and facilities at the existing Cromer Terminal.

The Bakken Pipeline Project Canada is needed to transport growing supplies of light crude oil from the Bakken Forma-

tion, which crosses through parts of Montana, North Dakota, and Saskatchewan to refinery markets in North America. When connected with other existing Enbridge facilities, the Bakken Pipeline will provide access to the Enbridge mainline pipeline system for transportation to the U.S. Midwest, midcontinent and eastern Canada.

“We’re pleased to receive the Board’s approval of our Canadian Bakken project.

It enables us to move forward with this component of our broader Bakken expansion plans in both Canada and in North Dakota,” said Perry Schuldhaus, Vice President, Regional Pipeline Development.

“The growth potential in the region is tremendous – with our existing infrastructure, and the proximity of our mainline system, Enbridge is well positioned to capture opportunities created by increasing production. ” While progress continues at building-up pipeline capacity in the Bakken region Enbridge is also pursuing other options to meet the immediate demands of shippers. On December 6, 2011, Enbridge Energy Partners, L.P. announced a $145 million investment to develop

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a rail facility near the Berthold, North Dakota station. This expansion will increase takeway capacity from Berthold by 80,000 barrels per day (bpd). The EPND Berthold Station is quickly turning into a critical point of access for producers and shippers to deliver the high quality Bakken oil being found in western North Dakota, Montana, Manitoba, and Saskatchewan. ɸ Page B20

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B20

PIPELINE NEWS February 2012

Trying to keep up with explosive Bakken growth in ND

The new pipeline will run from Steelman, Sask. to Cromer, Man. Map courtesy of Enbridge

ɺ Page B19 “Our Berthold Rail Project complements a series of expansions Enbridge has undertaken to expand transport capacity from North Dakota. It integrates high quality Bakken crude into Enbridge’s expanding portfolio of pipeline projects that access premium markets across the United States,” said Mark Maki, President of Enbridge Energy Partners, L.P. “Importantly, it allows producers and shippers the ability to continue to grow their business while Enbridge develops the next phase of pipeline expansions on the Enbridge North Dakota System.”

The Berthold Rail Project (Project) includes the construction of a doubleloop unit-train facility, crude oil tankage and other terminal facilities adjacent to its existing facilities near Berthold, North Dakota. The Project will have the ability to stage three unit-trains at Berthold at any given time. An initial start up phase will begin at 10,000 bpd of export capacity in July 2012, with the full export capacity of 80,000 bpd scheduled to be in-service by early 2013, before completion of Enbridge’s Bakken Expansion Program.

With forecasts of daily oil production showing the possibility of North Dakota reaching 700,000 bpd by 2013 and 1 million barrels by 2015, Enbridge is focused on meeting demands for export capacity by staying ahead of the curve in transportation options. Currently the EPND system transports 210,000 bpd from its Berthold station to Clearbrook, Minnesota and 25,000 bpd from Berthold to the International Border. Completing the Bakken Expansion Project (120,000 bpd) and the Berthold Rail Facility (80,000 bpd) will add a combined 200,000 bpd to Enbridge’s North Dakota System. By the end of 2013, Enbridge takeaway capacity has the potential to reach 435,000 bpd or, based on new forecasts, approximately 62% of oil coming from the Bakken in 2013.

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PIPELINE NEWS February 2012

Enviro Vault Canada has developed a new product called the ThermoVault with mulƟple catalyƟc or electric heaters designed to oīer a cleaner, safer alternaƟve to Įretubes for smaller BTU heat requirement. The tank in the photo is a 400 barrel oil storage tank.

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ThermoVault does away with Àre tubes Calgary – Enviro Vault Canada Ltd. is not resting on its laurels as the inventor of the iconic Enviro Vault with its patented recessed chamber built into the wall of many above ground oil storage tanks.

The Calgary-based company has come up with the ThermoVault, a new and improved assembly for heating above ground storage tanks.

The product is based on the Enviro Vault concept with a patented recessed chamber equipped with multiple catalytic or electric heaters.

The ThermoVault is designed as a safe, effective alternative to fire tube/burner assemblies for heating tanks and is well suited for use in hazardous areas such as light oil applications when fire tubes may not be allowed.

“Innovation is about continually looking for a better way, and our

focus has always been on improving tank safety and functionality by expanding the range of benefits offered by the Enviro Vault internal chamber platform,” said company representative Russ Hebblethwaite.

Enviro Vault contracted Alberta Innovates Technology Futures during the research stage to conduct a comprehensive analysis of ThermoVault’s catalytic heaters mounted within the recessed chamber to the inside of a tank shell.

The research and development process successfully tested and verified the system’s ability to raise and maintain fluid temperatures in above ground storage tanks.

The testing also revealed ThermoVault reduces levels of nitrous oxide (NO2) and carbon monoxide (CO) while meeting the same heating requirements compared to conven-

tional fire tube burner assemblies.

The company’s flagship Enviro Vault features an internal chamber with a door to access a set of mounted valves, sample taps, electronic controls, and a heater if the application requires one.

In oilfield tanks the Enviro Vault contains spills from leaking valves and pipes and addresses the high cost associated with a spill cleanup or frozen valves.

It also improves safety for employees working around tanks in the oilfield.

Enviro Vaults can be fitted in any size or shape of new tank or inservice tank for any specific application – heavy oil and light oil production tanks, produced water, potable water, asphalt tanks, separator packages, rental tanks, and any other application where a tank is required.

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B22

PIPELINE NEWS February 2012

Oilsands Quest dodges a deadline bullet

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Calgary – Time is enemy number one for Oilsands Quest Inc. that has until Feb. 17 to come with a viable restructuring plan thanks to an extension of creditor protection under the Companies’ Creditor Arrangement Act. The Calgary-based company was granted the extension from the original restructuring deadline of Dec. 21 set by the Alberta Court of Queen’s Bench. Oilsands Quest has spearheaded development of Saskatchewan’s oilsands.

Oilsands Quest obtained CCAA creditor protection on Nov. 29, one day after a deal to sell its Wallace Creek bitumen asset in Alberta fell through.

While under CCAA protection, the company is able continue its day-to-day operations under the auspices of Ernst and Young Inc., a court-appointed monitor.

If, Oilsands Quest has not obtained a further extension of the initial order or filed a plan by Feb. 17, creditors and others will be allow to exert their rights.

In the meantime, the board of directors and management of Oilsands Quest with input from the

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monitor will be responsible for determining whether a given plan for restructuring the company’s affairs is feasible.

Stakeholders whose rights would be affected by the plan will have an opportunity to vote on the plan.

Before a plan is implemented, it must be approved by the requisite number and value of affected stakeholders contemplated by law and approved by the court.

The implications of the CCAA proceeding for Oilsands Quest shareholders will not be known until the end of the restructuring process.

If the affected stakeholders do not approve a plan in the manner contemplated by law, Oilsands Quest will likely be placed into receivership, bankruptcy or liquidation.

Trading in the common shares of the company remains suspended while the NYSE Amex determines whether to resume trading or to delist the company for failure to meet listing requirements.

There is no word yet when the NYSE Amex will determine to resumption of trading, or seek to delist it from the stock exchange.

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PIPELINE NEWS February 2012

B23

Southern PaciÀc’s McKay project steams ahead Calgary – Southern Pacific Resource Corp. is steaming ahead with the Phase 1 construction of its STP-McKay thermal project in the Fort McMurray area with increased reserve numbers added from its Phase 2 expansion application on Nov. 10, 2011.

Southern Pacific has increased it proved plus probable (2P) reserves by 30 per cent to 234 million barrels of bitumen, hiking the net present value to $1.7 billion.

The filing of the expansion application gave a green light to GLJ Petroleum Consultants Ltd., the company’s independent reserves evaluator, to forecast 2P reserves using the combined Phase 1 and Phase 2 design capacity of 36,000 barrels a day of bitumen.

“This report confirms the significant value in our assets at McKay,” said Byron Lutes, president and CEO in a Jan. 4 news release.

“Our goal is to unlock the potential in order to turn this reserve value into cash flow as quickly as possible.

“We are excited to be one of the only SAGD projects expected to commence production in 2012.”

Phase 1 of the 12,000 barrels per day steam assisted gravity drainage (SAGD) project, located 45 km northwest of Fort McMurray, was approved in October 2010 and is in the final stages of construction.

Southern Pacific reports construction is on schedule and on budget with $366 million of the total forecasted budget of $440 million spent by Dec. 31, 2011.

The Calgary-based company is continuing to hire new employees for its operations team with a target of 46.

At the beginning of January, all of the current operations staff relocated from their temporary office in Calgary to the new operations facilities on site.

From there, they will continue to develop all necessary start up and operating procedures to ensure a smooth transition from construction to operation.

Southern Pacific’s target for first steam remains within the second quarter of 2012. The company says the timing will be firmed up as the remaining modules arrive on site. First oil production is expected to occur three to four months after the application of the first circulation of steam.

Meanwhile construction continues on the next phase of the company’s Senlac thermal project in Saskatchewan with the tie-in of three drilled SAGD well pairs completed.

Circulation steam on the first well pair commenced in mid-December, and first oil arrived in late December.

It is expected that only two well pairs will be required to fill the plant back to its design capacity of 5,000 barrels a day of heavy oil. The third will be brought on at a later date, when required.

Southern Pacific is expecting a strong first three months in 2012 based on a production ramp up from this latest phase along with a favourable pricing environment in the first quarter.

The company is also continuing to explore the potential of its Red Earth thermal project in the Peace River oilsands.

Testing on the 1,000 barrels a day of bitumen pilot project occurred over the last half of 2011 on three existing wellbores drilled prior to Southern Pacific taking ownership.

Southern Pacific used these existing wellbores to test three different configurations of cyclic steam stimulation (CSS). The purpose of the tests was to gain relatively low-cost knowledge on the reservoir performance under different CSS scenarios.

Based on the information gathered to date, the company continues to believe the reservoir has the potential to deliver commercial production rates.

Southern Pacific’s technical team is reviewing the results and will be making recommendations to further test the Red Earth project in 2012.

The company says this will most likely involve plans to drill new CSS wells utilizing improved thermal drilling practices and continue to use the existing facilities to generate steam and process oil.

Southern Pacific says independent estimates of 2.1 billion barrels of discovered bitumen resources on Red Earth acreage make this a project worth pursuing.

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B24

PIPELINE NEWS February 2012

PIPELINE NEWS February 2012

Busy Àrst quarter Winnipeg – Nordic Oil and Gas Ltd. will be busy in the first quarter of 2012 with projects planned or on the go at six different oil and gas properties in Manitoba, Saskatchewan and Alberta.

The Winnipegbased junior oil and gas company plans to drill the first of four wells on a quarter section of land it recently acquired in the Virden, Man. area to test for Bakken light oil.

The drilling will follow the interpretation of two lines of seismic it purchased with the property.

Nordic also plans to re-complete the failed acid job on a well drilled in December 2010 in the Preeceville/Endeavour area of eastern

Saskatchewan to prove a tight oil discovery.

In addition, the company is licensing the drilling of a shallow gas well to prove up a shale gas discovery in the same area.

In the Weyburn area, Nordic is in the process of licensing a new well to test the Bakken formation for light oil with the expectation this will lead to a drilling project of up to six wells on the newly acquired land in the area.

Nordic has completed its seismic activity on a new heavy oil well in the Lloydminster, Alberta area where the company has a one-third interest in 16 heavy oil wells and a 100 per cent interest in

one gas well.

The company reported in mid-December that the processing and interpretation would be completed shortly to survey the best drilling location for the new well to be licensed soon.

At Drumheller, Alta., Nordic plans to drill four to six strat test wells to test the lower Horseshoe Canyon coals for the viability of an underground coal gasification project through its 50 per cent owned subsidiary, Green Coal Canada Ltd. Nordic reports the initial interpretation from existing project logs is very favourable. In addition, the company is moving ahead with plans to find

Kingsland secures land position Regina-based Kingsland Energy Corp. has completed its Saskatchewan oil and gas mineral lease acquisition program with the successful completion of the procurement of two new prospective discoveries near Weyburn, targeting 1,280 acres in the Midale formation.

Both pools have been identified

and defined using 3D seismic.

Kingsland intends to develop each respective pool by deploying horizontal drilling technology to ensure optimal reservoir development.

The company believes that initial drilling success could generate over 14 additional new development drill targets for optimal field development.

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B26

PIPELINE NEWS February 2012

Twin Butte sets $66 million capital budget The business combination between Twin Butte Energy Ltd. and Emerge Oil & Gas Inc.

pursuant to a plan of arrangement under the Business Corporations Act (Alberta) has been

completed.

Immediately upon completion of the arrangement, Twin Butte

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and Emerge amalgamated under the Business Corporations Act (Alberta), continuing as Twin Butte Energy Ltd. The 2012 capital budget for the company has been set at $66 million, which includes the drilling of approximately 125 (87 net) heavy oil wells as well as an extensive workover and recompletion program focused in the company’s core heavy oil fairway in the greater Lloydminster area.

Pursuant to the plan of arrangement, Twin Butte issued approximately 54.1 million common shares to acquire all the issued and outstanding common shares of Emerge. After giving effect to the arrangement, approximately 189.6 million Twin Butte Shares are outstanding (on a non-diluted basis).

In connection with the completion of the arrangement, Tom Greschner, the former chairman, president and chief executive officer of Emerge, was appointed a director of Twin Butte.

Post-arrangement the attributes of Twin Butte include an enterprise value in excess of $600 million (based on the current trading price of the Twin Butte shares and estimated current net debt) and a strong balance sheet with ap-

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proximately $146 million in net debt, relative to a new credit facility of $205 million, and tax pools of approximately $560 million.

Proved reserves are 30 million boe with proved plus probable reserves of 51.1 million boe based on the combination of Twin Butte’s and Emerge’s independent reserve reports for the year ended Dec. 31, 2010. The proved plus probable reserve life index is in excess of 10 years, leading to a low annualized decline rate of 27 per cent.

Twin Butte has a low risk, high rate of return portfolio of more than 500 heavy oil drilling locations in areas that have historically seen low recovery factors to date, providing significant upside potential for long-term reserve appreciation. This inventory, based on current pricing, generates a recycle ratio of 4.5 times.

Current production is approximately 13,450 boepd (79 per cent oil and NGLs and 21 per cent natural gas). The company has hedged approximately 40 per cent of projected 2012 oil volumes at approximately C$83 per bbl. for Western Canadian Select (equivalent to $99 per bbl. WTI less $16 differential). Twin Butte has another 12 per cent hedged at approximately $99 WTI. Twin Butte also has 70 per cent of its projected 2012 natural gas volumes hedged at approximately $4.21 per gigajoule.

The size and scope of Twin Butte’s heavy oil operations and opportunities at greater Lloydminster is significant and currently accounts for approximately 9,300 bpd.

As a significant operator in the area, Twin Butte believes it will have a

competitive advantage when it comes to procurement of equipment and services as well as acquisition opportunities.

Core properties in the area are Frog Lake, Silverdale, Primate and Earlie. With the extensive drill ready identifiable inventory of over 500 net locations, these properties will see extensive heavy oil development drilling programs in 2012 and 2013. As well, Twin Butte will pursue the evaluation and possible pilot testing of enhanced oil recovery through thermal, waterflood and polymer applications.

The company’s near-term strategy is very much focused on proving the predictability and sustainability of the model through organic growth. With a combined stable, predictable base decline of approximately 27 per cent and forecast capital efficiency of approximately $16,000 per producing boepd, Twin Butte believes its cash flow and dividend will be sustainable for the foreseeable future. The strong capital efficiency is driven by the company’s extensive low-risk, high-rate-ofreturn heavy oil drilling inventory and its ability to high grade this large inventory of drilling locations.

In addition, Twin Butte will focus on acquiring stable, lowdecline assets with reasonable netbacks.

With a significant supply of oil and gas assets on the market, Twin Butte believes this portion of the strategy could prove very successful especially considering the experience and background of Twin Butte management.

As a larger, dividendpaying company, Twin Butte believes it is wellpositioned to compete for such acquisitions.

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PIPELINE NEWS February 2012

B27

Bird River chirps about Bakken drilling Winnipeg – Bird River Resources is chirping about the positive wrap-up of their 2011 drilling program in southwestern Manitoba while planning their 2012 program.

The Winnipeg-based resource company reported on Jan. 4 that two of the three final horizontal wells of 2011 were on production with the third well set for pumping.

The first well is an Antler River Resources horizontal well located northeast of Sinclair.

This well was drilled into the Bakken formation at 926 metres with a horizontal leg of 1300 m with initial production of 80 barrels of oil a day.

Bird River and Antler Resources each have a 25 per cent stake in the second and third horizontal wells drilled in partnership with 50 per cent owner Atikwa Resources.

The second completed horizontal well east of Pierson, was drilled into the

Spearfish formation and is pumping 200 barrels of fluid a day with a 20 per cent oil cut.

The third well was drilled in the same area with production numbers to be determined.

Bird River, a publicly traded company, holds a five per cent gross and a four per cent net participation in nine oil wells with eight of them producing.

The company also holds several oil leases in southwestern Manitoba (interest ranges from 25-100 per cent).

CWC Well Services to spend $8.7 M on Áeet Calgary. – CWC Well Services Corp. plans to stay ahead of the competition in 2012 with an $8.7 million capital expenditure budget to build and maintain its core fleet of service rigs and coil tubing units in Western Canada.

The budget includes $6 million to fund the building of two new Class three 2-inch coil tubing units and $2.7 million for various upgrades or additions to equipment in its service rig, snubbing and information technology divisions.

The Calgary-based company intends to finance its 2012 capital expenditure budget announced Jan. 3 from operating cash flows.

The 2012 capital expenditure budget continues the execution of CWC’s strategy to create value for its shareholders by focusing on the core business of well servicing with service rigs and coil tubing units.

The budget allows for a significant portion of the operating cash flow to pursue more strategic acquisitions in the service rig sector in keeping with the growth strategy.

CWC provides a full suite of oilfield services from service rigs, coil tubing and snubbing to well testing from operational locations in Grande Prairie, Red Deer, Lloydminster, Provost, and Brooks in Alberta, and in Weyburn, Saskatchewan.

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B28

PIPELINE NEWS February 2012

Committee to steer oilsands transportation Fort McMurray – A new advisory committee will review and will make recommendations to the Alberta government on the current and future transportation needs of the Athabasca oil sands region.

The committee of municipal, industry and provincial representatives will take into account the region’s unique economic and infrastructure needs and

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the importance of the oil sands to the province’s economy.

“Our government recognizes the critical importance of collaboration with stakeholders to make informed decisions on roads, highways, rail, and air in the oil sands area,” said Jeff Johnson, minister of Infrastructure and minister responsible for the Oil Sands Secretariat.

“This committee will be a powerful tool for the region to plan and coordinate its transportation needs and will help support the continued growth of the entire region.”

The Athabasca Oil Sands Area Transportation Coordinating Committee will include representatives from the Regional Municipality of Wood Buffalo, the Oil Sands Developers Group, the Alberta Economic Development Authority, the Fort McMurray Airport Authority, the Northern Alberta Development Council, Cindy Ady, MLA for Calgary-Shaw, and the Alberta government.

The committee will meet a minimum of four times a year and will provide strategic advice and recommendations on transportation planning, design, funding, construction, operations and maintenance; including all classes of roads, transit, rail, and air traffic within the Athabasca oil sands area.

Heather Kennedy, Suncor Energy Vice President, provides extensive experience and knowledge in managing the impacts involving development. She will chair the new committee and provide leadership in collaborating with industry and local communities, government and associations in the area to develop a strategy for public transportation infrastructure.

“This is about working together to meet the transportation needs of the local community,” said Minister of Transportation Ray Danyluk.

“By involving all the partners, the future transportation plans for the area will truly reflect the needs of the region, industry and municipalities.”

The committee will provide strategic advice and recommendations to the Minister of Infrastructure and the Minister of Transportation, the Mayor of the Regional Municipality of Wood Buffalo, and the chair of the board of directors of the Oil Sands Developers Group.

“Transportation has been a key concern for our municipality, and the establishment of this committee helps address that concern,” said Melissa Blake, mayor of the Regional Municipality of Wood Buffalo.

“By having the municipality as part of this committee, a local perspective is guaranteed to be present and active in transportation decision making.

“We look forward to collaborating with the Province and industry to improve and enhance our transportation networks and resolve the region’s transportation challenges.”

This committee is part of Responsible Actions, Alberta’s 20-year strategic plan for the oil sands, which includes efforts to support further planning and development of vibrant communities in the oil sands regions.

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Vermilion, Alta. – The spotlight will once again shine on Lakeland College’s partnerships with industry during this year’s capstone presentations by graduates of the bachelor of applied science environmental management program on Jan. 30.

The forum will feature grads presenting indepth reports about their environmental work during their eight month practicums before representatives from placement hosts from industry, government and environmental agencies on hand.

The event, which is open to the public, will take place at the Alumni Hall Theatre at the Vermilion campus from 9 a.m. to 4 p.m. with 15 presentations by 15 BScApp:EM students.

The list of placement partners includes Alberta Environment, Husky Energy, Stantec Engineering, Teck Coal Ltd., and AMEC. “The partnership between industry and the college that has worked to develop the BScApp:EM program has resulted in a great deal of progress,â€? said Dr. Arthur, BScApp:EM program head and practicum co-ordinator. “Years ago, organizations would have perhaps one environmental technician on sta. Now there are multi-disciplinary teams that include scientists, technicians, agrologists, biologists and more. “As a college we are pleased to be able to train

and educate high-quality and competent graduates to be part of these teams and organizations.�

The capstone presentations literally cap o the graduation requirements of the applied degree program.

The students will discuss their projects in technical detail while incorporating academic knowledge, research and information about practical skills and experience gained.

Arthur said that some students have been offered continued employment with their industry hosts as a result of their practicum performance.

For people considering a new career in the environmental sciences ďŹ eld, the capstone presentations oer a great opportunity for career investigation. “Audience members will learn about the science, technology, regulations and research being done to protect, preserve and reclaim the environment,â€? said Dr. Arthur. “A lot of information will also be of interest to high school science teachers and high school students interested in the environmental sciences ďŹ eld.â€?

Lakeland College’s BScApp:EM is one of only a few programs in Canada accredited by ECO Canada.

TAQA sells southeast Saskatchewan non-core assets

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TAQA North Ltd., a subsidiary of the Abu Dhabi National Energy Company PJSC reached an agreement in late December with a private company to sell non-core oil and gas assets near Estevan in southeast Saskatchewan.

The assets currently are producing approximately 4,000 bbl. of oil equivalent per day.

The sale, which is anticipated to

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close in March 2012, is part of the TAQA’s management of its portfolio by which it is divesting non-core and mature assets, and investing in strengthening its strategic assets.

Frederic Lesage, president of TAQA North, said in a news release. “We will continue to focus our capital investments in the coming years to organically grow our core Canadian and American operations,� he added.

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PIPELINE NEWS February 2012

Crew to spend $300 million this year ahead, drilling 158 (155 net) wells in 2011, the most active year in its history, more than doubling the wells drilled in 2010.

At Princess, Alberta, Crew drilled 62 horizontal, 45 vertical and 13 salt water disposal wells in the fourth quarter. The company drilled more horizontal wells in 2011 than in the previous three years combined, yielding significant production gains, with five more wells awaiting tie-in and 22 wells awaiting optimization.

Results of Crew’s initial waterflood at the Pekisko “K” pool were encouraging, management said. In the last four months, fluid levels in producing wells there have risen as production rose to 43 bpd from 25 bpd. The increase is “directionally important,” since it represents a 72 per cent increase, the company said.

40249211•06/25/10

Crew Energy Inc. has set this year’s capital budget at $300 million, with 141 (132 net) wells planned over the year, the company said Jan. 11.

While strong, the budget is about 14 per cent below the $350 million the company spent in 2011. This year’s figure is designed to roughly equal 2012 cash flow, management said in a news release.

Crew estimates fourth-quarter volumes will average about 30,000 bbl. of oil equivalent per day.

The figure would mean Crew more than doubled production since the fourth quarter of 2010, when volumes averaged 14,550 boepd. At the same time, management estimated diluted production per share rose 38 per cent since the fourth quarter of 2010.

On the drilling front, the company surged

The producing Pekisko wells will be further optimized by pumping higher fluid volumes, with the current injection rate of 3,400 bbl. of water per day expected to rise to 6,000 bbl. in this year’s first quarter. The 72 per cent rise in oil volumes was accompanied by a 19 per cent increase in water production, management said.

At Kobes, British Columbia, Crew drilled two net Montney horizontal wells in last year’s fourth quarter. The first well (one net) is on stream at 1.7 mmcf and 145 bpd of natural gas liquids (NGLs).

Although less than expected, the well has confirmed the high liquids cuts of 85 bbl. per mmcf (50 bbl. condensate) seen in the original vertical completion, the company said. The second well (one net) has just been completed and is expected on stream within days.

At Tower, also in B.C., Crew participated in a “significant” Montney oil discovery. At the end of a 23-day production test, the 13-8 well (0.33 net) was flowing 610 boepd, made up of 342 bpd of oil and liquids and 1.7 mmcf per day of gas.

In 2012, Crew will focus on oil and liquids production at Princess, Lloydminster and Tower to capitalize on strong oil prices. The program will advance seven secondary oil recovery schemes and de-risk oil and NGLs plays in B.C. and Alberta’s Deep Basin. The $300 million capital program will be funded mainly by cash flow from operations and bank debt.

Of the 141 (132 net) wells planned for this year, 123 wells or 87 per cent will target oil, representing about 80 per cent of budgeted capital, and the remaining 18 wells or 13 per cent will target liquids-rich gas, management said.

In 2012, about 87 per cent of Crew’s wells will be drilled horizontally, up from 52 per cent in 2011. Seventy-five wells are planned at Princess, Alberta. In addtion, two facilities are budgeted to be expanded and five new waterfloods are expected to be implemented as well as the completion of a number of pipeline projects.

40247758•10/23/09

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B32

PIPELINE NEWS February 2012

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PIPELINE NEWS

C-SECTION February 2012

Champion chemistry Áows high viscosity oil

By Geoff Lee Lloydminster – The FlowPlus VR-1100 sounds like a rocket, but it’s a new viscosity reducer developed by Champion Technologies in Lloydminster specifically to mobilize very heavy oil that won’t flow within a wellbore.

Champion makes a full range of production chemicals from corrosion inhibitors and de-scalers to H2S scavengers and sand suspension products, but the VR-1100 is the company’s first foray into viscosity reduction solutions for heavy oil wells.

The VR-1100 has been well received since a presentation on its development by Champion’s business development manager, Travis Minish, at the Heavy Oil Technical Symposium last fall in Lloydminster.

“The reaction has been good,” said Minish in a follow-up interview in January.

“The producers are happy that we are producing more oil and that their run times are extended and their servicing costs are down.

“They are happy with the return on investment. The cost of treatment versus the benefit of treatment is about a 10 to one ratio. For every dollar spent on programming, they are making about 10 extra dollars in revenue.”

The ideal application, says Minish, is a well with oil up to 100,000 centipoise (cP) on the high end of the viscosity scale that is limited in production due to high torque restraints on the pumping equipment.

“This isn’t the magic bullet for every well. A lot of wells don’t require this, but the well that does require the VR-1100 because of viscosity issues, benefits greatly from it,” said Minish.

“We see increased pump efficiencies because we are getting heavy oil to load into the pumps. We have seen drastic torque reductions.

“Wells that are requiring 1100 foot-pounds of torque – maybe we can reduce that to 500 to 600 footpounds. At the same time, we are able to speed that well up.

“The bottom line is we are pro-

ducing more oil.”

Viscosity related issues with heavy oil such as poor inflow, poor oil mobility, poor pump fill, high water cuts and torque issues prompted Champion to seek a solution to these problems as reserves of lighter heavy oil are petering out.

“We used to go after the easy oil, and a lot of the easy oil is gone now,” said Minish.

“We are going into fields now with increasingly higher viscosities in them. The oil is still worth money; it’s just harder to get out of the ground.

“If we can get that oil out of the ground using a product like the VR-1100 rather than using steam, then that’s more cost effective for the producer.”

Champion ruled out a solvent solution that requires expensive surface equipment in favour of the VR-1100 surfactant that was developed in the lab in 2009.

The VR-1100 met Champion’s three main criteria to develop a chemical solution that would lower the viscosity and improve heavy oil mobility; have no negative impact on demulsification, and lead to a quick dispersion separation of oil and water.

“We screened a lot of things to determine what was going to be effective,” said Minish.

“What we found was effective was this surfactant that made a dispersion which had a drastically lower viscosity.

“The dispersion was able to fall apart and separate into the oil and water phase if it was left alone for about a half an hour.

“The other thing about this surfactant is that it does not create treating issues. We wanted to solve the problem, but we didn’t want to create more problems,” he said.

“Our surfactant meets those three criteria.

“It took 10 months of testing in a lab to develop a product and field trials after that to prove that it does meet those three criteria.

“The balance is finding a product that works that doesn’t cause another problem,” said Minish. ɸ Page C2

A Champion Technologies employee collects a wellhead sample to determine the BS&W (basic sediment and water) and observe dispersion characterisƟcs.

Photo submiƩed

C2

PIPELINE NEWS February 2012

Every well looked at individually ɺ Page C1 In a nutshell, the oilin-water dispersion chemistry works by creating an oil droplet which Minish describes as being “water wet.”

“That oil droplet then goes into a water phase and flows with a water phase,” he explained. “The oil is flowing within a water phase which is a lower viscosity phase.”

One field trial used an application dose of 1,000 parts per million of VR-1100 to produced oil mixed with produced water pumped into the annular space of the wellbore in a continuous trickle.

The volume of produced water is about 30 per cent of the total volume of the reservoir fluid.

“Every well has to be looked at

individually,” said Minish. “The 30 per cent at 1,000 parts per million formula is our initial dose rate.

“We optimize each well to make sure it gets the full benefits of the program so that producer is paying as little as possible.

“So far the wells that we are on haven’t seen production declines.

That goes back to well selection. You need to make sure you select the right candidates.

“We are still collecting data and learning which wells benefits the best and which ones don’t.

“It’s been well received. It requires some capital investment on the producer’s part,” said Minish The surface equipment list in-

A well operator shoots a Ňuid level to assist in opƟmizing the well speed and chemical injecƟon rates of Champion’s FlowPlus VR-1100 viscosity reducer. Photo submiƩed

Travis Minish, business development manager for Champion Technologies in Lloydminster, says chemical soluƟons to reducing viscosity of very heavy oil will become increasingly important as an enhanced oil recovery method.

cludes a water injection pump, a water source such as a production tank, a chemical tank, a chemical injection pump and related piping from the tank to the wellhead along with heat tracers.

Minish says Champion has found the VR-1100 is also proving to be effective at reducing the torque requirements of wells with high water cuts and very heavy oil along with wells with oil, water and sand.

“When you have oil, water and sand in three phases, what tends to happen is that sand will start to settle out in the water phase,” explained

Minish.

“You get accumulations of sand in the wellbore or the pump intake or within production tubing. The sand packing or settling prevents inflow to the pump or causes sanding off of the well.

“When we add the VR-1100, we make a homogenous mixture from top to bottom in that well. We have an oil, sand, and water mixture which is continuous from top to bottom so the torque is steady.

“The sand is in a dispersion phase and we are able to carry that sand to surface,” Minish said.

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C3

Brother’s may be too busy th to mark its 25 Brian Payne, leŌ, and his brother, Bob, have all the coaƟngs work they can handle at their Brother’s Specialized CoaƟng Systems Ltd. in Edmonton.

By Geoff Lee Edmonton– This story may have to suffice as a 25th anniversary celebration for Brother’s Specialized Coating Systems Ltd. based in Edmonton, Alberta.

That’s because brothers Brian and Bob Payne who currently run the business started by their late father, Dan, and his brother, Bill in 1987, are simply too busy to plan a party for the April anniversary.

“We are so busy working we haven’t really sat back and decided what we are going to do,” said Brian, who wears multiple hats including that of a general manager in charge of sales.

“When you think about 25 years, it’s a pretty good milestone, and being second generation to accomplish that has been pretty good too.

“Our secret to success has been great customer service. I like to go off people’s feedback and the feedback we receive is that we are a hassle free company to deal with.

“We make the right calls when we need to make them. High quality coatings are what we are known for. People come to us because they know they are going to get the job done right.”

Brother’s supplies and installs a complete line of internal and external spray on coatings, specializing in coatings for fabricated pipe spools along with pipe bends, tanks and vessels for the oil and gas industry.

The company also does flame spray metalizing of stainless steel, aluminum, nickel, chrome and zinc for a variety of external industrial coating applications.

“Probably 80 to 90 per cent of our work is oil and gas related,” said Brian.

“We do 400 barrel tanks in our shop. And if we do field work, we line 1,000 barrel tanks and that kind of thing.

“We work full out. It’s a very busy industry. Right now we are busy on drilling activity. We are working on some projects that are associated with drilling with supply tanks and stuff like that.”

Each coating specification has a particular chemical, temperature and abrasion resistance for a variety of environments such as oil and gas, produced water, acid and fresh or salt water service.

“The main purpose is to prevent corrosion. If you don’t coat a line, you risk having a failure somewhere,” said Brian.

The demand for Brother’s specialty coatings continues to increase, says Brian, as the oil and gas industry continues to run more equipment with higher temperatures.

“The processes are getting a little more extreme. They are looking for coatings that are more advanced in terms of taking higher temperatures and that kind of thing,” he said.

Brother’s operates two shops in one location including a 3,000 sq.- ft. building for sandblasting and an 8,000 sq. ft. structure for the application and curing of internal and external coatings. ɸ Page C4

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C4

PIPELINE NEWS February 2012

Developed their own equipment as needed ɺ Page C3 Separate buildings prevent dust from sandblasting contaminating the coatings – with quality control being the key to Brother’s long-term success.

“When our customers come to us, they want to know our coatings look good when they leave and they stand up when they leave. Our QC is top notch,” said Brian.

“You need to know your process, what you are using – make sure you are using the proper batch numbers – make sure your cure times and schedules are all right.

“There are a lot of environmental conditions you have to maintain to apply the coatings.”

Customer products such as pipes are pre-cleaned prior to sandblasting to prevent any surface contaminants from being driven into the steel.

Welds in products such as pipe bends are pre-grinded before entering the blasting bay to meet certain parameters for coatings.

Chris BassoƩ wearing protecƟve gear, lances or coats the interior of a pipe spool with special equipment designed in-house.

Davin Magnusson uses a Ňashlight to inspect the inside of the pipe prior to the applicaƟon of epoxy coaƟng at the Brother’s coaƟng shop.

The sandblasting itself creates the ideal surface profile at the molecular level to help bond the coating to the metal.

Production and quality control processes are conducted under the watchful eye of Bob, who is a member of the North American Corrosion Engineers or NACE, as a certified coatings inspector.

“A lot of our equipment wasn’t available commercially, so over the years we’ve developed our own spray equipment,” said Bob. “The main coatings we apply on a daily basis are epoxies such as epoxy novalac for thermal protection of piping. We also use some polysiloxanes (coating binders) for acid tanks. “All of it is spray. Some is plural spray components and some is single spray with conventional equipment. We do some fibreglass linings as well.”

Brother’s has done the bulk of coatings work for CO2 pipe spooling used

by Cenovus near Weyburn since that project began.

“We don’t develop coatings. We apply them, but we have developed special processes for applying them,” said Bob. ɸ Page C5

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PIPELINE NEWS February 2012 Brother’s specializes in internal coaƟngs of pipe spools and pipe bends such as this one used below grade in the oil and gas industry. Photo submiƩed

ɺ Page C4 “The CO2 is a different service. There’s some acid produced and any gases coming out of the coatings will take the coating off.

“We use a special coating for that area for the CO2 service.”

Brother’s also does a lot of coating work for Carson Energy Services in Lampman, along with a growing list of customers in Alberta and British Columbia.

“Our company has just been running flat out,” said Brian who looks after 11 employees.

“We like to be the size we are. We don’t really have a lot of growth. We are just running 125 per cent flat out every year. We’ve done that for 25 years.

“The biggest factor in this business is labour, just like every other business.

The thing about our industry is that there is not really a formal training ground.

We’ve still got guys learning who have been here for five or six years,” Brian said.

Brother’s has had to park its mobile metalizing coating units lately due to a heavy workload at the shops.

“With this business the way it is, it depends on the labour force. The younger generation just isn’t coming up with getting into this kind of work,” said Brian.

“Let’s face it. It’s hard work, it's dirty work. It’s not sitting by a desk or a computer. We’ve got guys who have grown up in their family and started in this business.

“Most of the guys who I interview tell me their dad has been in this business as a blaster or coater. You just kind of grow up around it.”

That’s the way it was for Brian and Bob who learned the trade from their dad Dan who took over Brother’s on his own in 1993. The rest is family business history.

“My whole life I have been around sandblasting and coatings,” said Brian.

“It’s a specialized field. It’s not just a matter of putting paint on something. I can hire painters and they can they paint, but when you start putting stuff on the inside, there’s a lot of ‘feel’ to it.

“You have to know how to handle the equipment. You have to know how the equipment is running. It’s kind of technical. The guys here get a lot of hours.”

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PIPELINE NEWS February 2012

Multi-Chem riding an upward growth curve

By Geoff Lee Lloydminster – The Multi-Chem story in Western Canada is all about the winning combination of their effective applications of customized specialty oil and gas chemicals along with unprecedented growth.

The U.S.-based company was purchased by Halliburton in October, five years after entering the Canadian market with virtually no presence, to staffing more than 26 field locations today with more to come.

Larry Paul, the area manager in the busy Lloydminster office, says being a Halliburton service division will create more opportunities for MultiChem to expand its regional heavy oil market for its chemical products and solutions.

“It creates opportunity for the product,” said

Larry Paul, area manager for MulƟ-Chem in Lloydminster, expects the recent purchase of the U.S.-based company

by Halliburton will open up more opportuniƟes in Western Canada for their chemical soluƟons products.

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Paul. “They have so many applications within Halliburton’s group of companies.

“There are so many things that we are working towards right now. It’s a work in progress, but things are moving along very well.”

Multi-Chem focuses it technology on completions, production and pipelines in Western Canada with chemistries such as emulsion breakers and defoamers designed for heavy oil applications in the Lloydminster area.

Demulsifiers are applied into battery facilities to help separate the oil from water and solids, while defoamers control foam in production systems.

“We also have some specialty products that help with production enhancement such as friction reducers and sand suspension chemicals,” said Paul.

“Another one that’s really taken off is the H2S scavengers for sweetening the fluid to make it a safer and less corrosive environment.”

Multi-Chem’s diverse chemical offerings range from asphaltene treatment products and wetting agents to viscosity reducers and water clarifiers.

Paul says the regional demand for chemistries such as emulsion breakers is driven by the need to treat heavy oil to make it saleable by separating water and solids from oil.

The other drivers in the area are increased production and stepped up drilling activities which have helped to increase Multi-Chem’s sales and profile in the area.

“The demand is strong in the Lloydminster area,” said Paul.

“It’s a fairly competitive world out there. We are a relatively new player on the block. We’ve been set in the Lloydminster area for just over four years and growing aggressively.”

What differentiates Multi-Chem from its competitors, said Paul, is the motivation to live by their mission and values to provide unparalleled technical expertise and superior local service to their customɸ Page C7 ers.

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PIPELINE NEWS February 2012

C7

MulƟ-Chem now has 26 Įeld locaƟons in Western Canada with more outlets to come for Estevan, Kindersley and Provost. Since October 2011 the U.S.-based chemical soluƟons company has operated as a Halliburton service division.

equipped for analysis and another lab in Edmonton for product development.

“We review every field differently,” said Paul.

“You just can’t paint every well with the same brush.

You need to identify characteristics.

“We try to understand the production zone that they are producing out of, and a lot of the time there will be very similar characteristic to that production.”

Multi-Chem sources it raw materials from third party chemical manufacturers and maintains

ɺ Page C6 “The big thing at any level is just helping the customer solve their problem,” he said.

“Be there assisting them and look for opportunities to help save them money on the production side, whether it’s through equipment – with all of that tied through chemical programs.”

Paul says chemicals are vital to the heavy oil industry based on the simple fact oil is more saleable as a clean product, and the realization that chemicals can prevent costly problems from affecting production.

“A lot of times it’s too late to do anything after the fact,” he said.

“We have a lot of different applications to solve the problem before it happens or assist in the problem being solved. We try to be on the offence rather than be on the reactive type of application.

“In your water production and in your disposal wells, there is scale that forms in produced waters so you need to add scale inhibiting chemistries.

“It can be a very corrosive environment that creates holes in pipelines or some of your downhole equipment, so you are adding corrosion inhibiting chemistries to reduce or eliminate that,” Paul said.

Multi-Chem offers specific chemistries of corrosion inhibitors, emulsion breakers, iron sulfide dissolvers, scale inhibitors, surfactants and wax inhibitors to help prevent equipment failures.

The company operates mobile and regional labs including one in Lloydminster to provide accurate testing and prescribed solutions.

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local blend plants to create cost-effective chemical solutions.

“Currently, a lot of our blending is done in the U.S., and we’ve now got third party blending companies in Canada that we are utilizing,” said Paul.

The Multi-Chem business model of establishing an office or warehouse to serve new customers within a 100 kilometre radius will lead to new warehouses in Kindersley and Estevan in 2012. ɸ Page C8

C8

PIPELINE NEWS February 2012

Movement into polymer Ă oods Éş Page C7 The company also has established a warehouse in Swift Current and has a representative from Lloydminster currently servicing the Provost, Alberta area oilďŹ eld known for its corrosive environment. “It’s basically a wetter production type of ďŹ eld there,â€? said Paul. “They have water oods and now people are moving into ASPs (alkali surfactant polymer oods) and polymer oods which create a dierent scale and corrosive type of environment. “We are working with producers on these areas across Western Canada as well as in the Provost area. We will soon have a warehouse down there too.â€?

A Bonnyville oďŹƒce has been set up to tap into growth opportunities with chemistries for steam assisted gravity drainage or SAGD projects in the area. “We are actually developing a SAGD team that is working on those projects now. That will be coming into play this year,â€? said Paul.

Paul says being a Halliburton service division also throws the doors wide open in the frac chemical market. “Now with Halliburton and their application equipment, and Multi-Chem with their chemical technology – those two melding together will be very strong for us in Canada,â€? he said. “I think it was very smart of Halliburton to bring the company into their line. It helps support a lot of the work they do as well. “They have tons of resources and opportunities. It will create opportunities for Multi-Chem globally. There are also opportunities for sta to expand their career opportunities anywhere in the world.â€?

Paul oversees a sta of seven employees

in Lloydminster with more than 100 Multi-Chem employees in Canada including those who work in deepwater technology solutions in Newfoundland. “We are always looking for help and making sure the people ďŹ t our culture and have a technical knowledge and experience that they can bring to the table to help us be successful,â€? said Paul. “Multi-Chem has been able to bring on experienced people from the industry and with that knowledge and experience of applications, it’s assisted to help us get through doors. It’s all about relationships and past experience.â€?

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PIPELINE NEWS February 2012

C9

Macklin turning 100 with a youthful spirit

By Geoff Lee Macklin – Macklin is one of the youngest and oldest towns in Saskatchewan as it will celebrate its 100th birthday Aug. 2-5 and it boasts that 73 per cent of the local population under the age of 45.

The younger vibe will be experienced along with the town’s history by as many as 5,000 visitors.

Many of the celebrants will come to participate in the 2012 World Championship Bunnock Tournament being held in conjunction with the centennial weekend festivities.

“The 2012 centennial has created a lot of excitement. It’s a big thing to put together, but we are celebrating 100 years,” said Mayor Pat Doetzel.

“We have lots of exciting things for adults and for the kids. Anyone who is associated with Macklin is going to come back and say ‘wow.’”

The wow factor includes the town’s rapid population growth of up to 9.5 per cent annually in recent years thanks to a strong oil and gas industry that will continue to attract young workers and families to the community.

“Let’s face it. Right now, it’s kept our young kids in Macklin employed, and it’s definitely been an asset to the community and the surrounding area financially,” said Doetzel.

area such as Husky, Talisman, Pengrowth and Penn West have told Doetzel that 2012 could be a banner year for drilling too.

“Everybody says ‘Wow it’s going to be busy,’” said Doetzel.

“We’ve got Talisman drilling so many wells; we’ve got Macklin Mayor Pat Doetzel holds a Northern Blizzard drilling so set of tourism brochures that will be many wells – the majority of well read during the town’s cententhose companies out there are nial year celebraƟons Aug. 2-5. The drilling. event will be held in conjuncƟon with “Last year, there wasn’t as the World Championship Bunnock much activity, but they are all Tournament. taking about doing massive drilling this year.

“Any time they are doing drilling, there is going to be activity, and there is going to be an attraction of people and job opportunities.”

Finding a job has never been easier with a growing list of local oil and gas equipment and service providers such as Clean Harbors posting a running list of help wanted ads.

Macklin is one of the fastest growing towns in the province that benefits from its location at the junction of “It’s going to be here for a long time yet. We Highways 14 and 31 just east of the border with see bright things for the district and for Macklin in Alberta and the busy oilfield centre of Provost. the future.”

Some of the major energy producers in the ɸ Page C10

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PIPELINE NEWS February 2012

'I had three jobs offered to me' ɺ Page C9 Doetzel for example, works in Provost as a safety technician for Astec Safety Inc. and he says the job market will be extremely strong in 2012 on both sides of the border.

“There seemed to be a lull last year and everybody said, ‘Be ready, because 2012 will open up,’” he said.

“It won’t be a massive boom like we’ve seen five or six years ago, but it’s going to be very active.

“Guys are coming out from Nova Scotia and Ontario, and they are so surprised because it’s taking them a week and they’ve got a job.

“They will say ‘I didn’t have an opportunity for one job. I had three jobs offered to me’. This is something a lot of these people are not used to. It is an occurrence out here on a daily basis.”

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Doetzel says four or five years ago, there were no homes available for sale let alone any place to sleep in town.

That changed with the previous downturn and an ongoing trend of older residents moving into condos or retirement housing. That, in turn, has opened up a lot of housing.

“We have two retirement homes and we just put a 10 room addition on to the Villa Marie (assisted living) which created 10 housing availabilities. The majority of the residents came from within the community,” said Doetzel.

“There was a little lull in the housing market for that reason. We do believe 2012 will start again with interest in people building new homes.

“The young people who have found jobs in the oil industry are the ones who have been purchasing the houses that were built in the ’70s and the ’80s.

“A lot of the young people have made a commitment to their job to work in the oil industry and they are not afraid to take out a mortgage to build a new house and call Macklin their own.”

Doetzel adds Macklin has a good school system that makes the community attractive to young parents along with the available health and recreation services and shopping within walking distance.

Major centres such as Lloydminster, Edmonton and Saskatoon are within close driving proximity.

“It’s a comfortable style of living, affordable, and you won’t find a better bunch of people in the community and the district,” said Doetzel about his community.

In 2011, the Town serviced an additional 20-lot residential subdivision for new home building in anticipation of a renewed demand for housing. ɸ Page C11

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The Ambertec Ltd. plant in Macklin which processes and supplies asphalt based materials to the road and highway industry, has conƟnually expanded its footprint to meet customer demand.

ɺ Page C10 The town also recently serviced a 40-acre commercial property fronting Highway 14 where construction will begin this spring on a new 14,000 sq. ft. RONA store and a new and larger Co-op Marketplace.

Both of these businesses are currently located downtown and need more room to grow along with the strength of the oil and gas and agriculture industry in the area.

“Once they get set up and established, it’s going to draw other businesses in there,” said Doetzel.

“We’ve had interest, but at this time we don’t really want to divulge who is interested in going there.

“We believe construction of both projects will start this spring. It’s going to do nothing but great things for the community. We will draw from pretty well every community that is surrounding us.”

Macklin has an available inventory of serviced industrial land and plans to the complete a $2.5 million wastewater lagoon system expansion in 2012 for future growth and development.

The centennial celebrations in August will feature the dedication of a new centennial adult theme park equipped with exercise stations, resting areas and walking trails with plaques recognizing some of the key people who have helped make Macklin what it is today.

The centennial weekend will also shine a spotlight on a new outdoor Alliance Pipeline Aquatic Centre, built and funded by a group of community volunteers in 2011.

Most of the visitors will be housed at Macklin Lake Regional Park that Doetzel said “is a sight to see” in the summer.

“It’s full from the start of spring with the last trailer moving out in November or when they are forced to move out,” he said.

“The regional park has purchased another 40 to 50 acres on the west side of the lake that they want to expand and open it up for more cabins in the future.”

Mayor Pat Doetzel expects more young families to move into the town in 2012 as the major oil and gas companies such as Husky step up drilling on both sides of Alberta Saskatchewan border.

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PIPELINE NEWS February 2012

Caradan Chemicals plans for several new locations

The three principal owners of Caradan Chemicals Inc. are (l-r) Shane Clemmer, operaƟons manager; Raymond Doraty, president; and Howard Brown, technical sales and service manager. Caradan is a Canadian owned company expanding to serve the SwiŌ Current, Bonnyville/Cold Lake and Grande Prairie areas this year. Caradan opened a new H2S scavenger blending facility in Red Deer in January.

By Geoff Lee Nisku, Alta. – Caradan Chemicals Inc. is a 100 per cent Canadianowned manufacturer and distributor of specialty, stimulation and production chemicals for oil and gas producers with a solutionsbased formula for rapid growth and expansion in 2012.

The Nisku-based company opened a new blending facility in Red Deer in January to

meet the demand for its flagship H2S scavenger products from Western Canadian producers.

Caradan is also planning to open new field offices in Grande Prairie, the Bonnyville/ Cold Lake corridor area and Swift Current this year to meet the demand for its chemistry and chemical-based solutions.

“It appears 2012 is going to be very busy here at Caradan Chemicals,” said Howard Brown, technical sales and service manager at Caradan’s main manufacturing complex in Nisku, Alta.

“We do have kind of a unique niche in the fact we do a custombuilt product specific to the customer’s needs.

Very few of our product lines used in the field are used off the shelf.

“Because we are a small junior size company, we still have the ability to put our customers’ needs first – custom building, custom blending – very rapid turnover of those products and the services related to those products.”

Caradan has experienced service reps throughout Western Canada who work with the client in the field to determine what their needs are and develop chemistries around those needs.

“Rather than taking those chemistries and trying to apply them

to the problem, we are taking the problem and developing a chemistry to address the problem,” explained Brown.

The formula works as Caradan has experienced growth rates up to 300 per cent a year since its inception in 1998.

“The last two years have kind of settled back down again with the slowdown, but at no point have we taken a step back,” said Brown.

“The chemical industry, in general, has a certain stability that a lot of industry doesn’t offer, in the fact that as long as production is coming out of the ground, the chemistries are required.”

Provincial governments have also regulated tighter standards for H2S emissions prompting a rush for new specialty scavengers that remove H2S from gas and fluids.

Scavengers remove H2S from the gas stream in order to be turned into a saleable product such as sweet gas.

Caradan’s new blending facility in Red Deer will help meet the demand for its newest H2S scavengers that Brown says have chemistries that are unrivaled by competitors.

“We have two different versions of the H2S scavenger,” said Brown. ɸ Page C13

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Caradan stores raw chemicals and Įnished products for delivery at its tank farm – the back yard of their manufacturing facility and head oĸce in Nisku, Alberta.

ɺ Page C12 “One is an extreme high performance product that is unique in the industry. It offers one of the best uptakes of any H2S scavenger and it’s the most economic.

“We’ve also got one with the lowest toxicity levels while still retaining a high uptake level.

It makes it very unique in the industry.

“We probably have the most comprehensive line of H2S scavengers of any company operating in Canada right now.

“We see because of more regulations and tighter guidelines with regards to emissions,

H2S scavengers taking a very prominent role in our future.

“Caradan is always developing new products using state-ofthe-art equipment in our lab to enhance the chemistries’ capabilities,” Brown said.

Water samples collected in the field are analyzed in the water lab to determine chemistries to mitigate the driving forces of problems such corrosion, scale and paraffin precipitation and are tested in the field.

“A good majority of our analytical services are capable of going out to the field including onsite H2S scavenging

testing,” said Brown.

“We have a micro skid that we do comparative analysis with on site, so we can take an incumbent’s chemistries and our chemistries, and run them side by side and see which of them is going to be superior.”

Demulsifiers, corrosion inhibitors, scale inhibitors and H2S scavenger chemicals developed by Caradan are among the industry leaders in the heavy oil industry where production relies on good chemistry.

Oil, for example, requires a demulsifier in order to meet a saleable standard of half a per cent or less of total

basic water and solids content.

The demulsifier basically breaks down surface tension and allows oil and water to break apart.

Paraffin precipitation in wellbores can cause the well to foul and lose production. It can also increase stress loads on equipment and can cause equipment to fail without corrosion

mitigation.

“There is aggressive corrosion attack causing premature failure of equipment,” said Brown.

“With scale inhibition – it’s the same sort of thing. It is also a severe plugging issue restricting flows.

“All of these chemistries that are used in our day-to-day business are critical and essential

to the producers’ needs.”

Caradan also manufactures foamers, defoamers and chemicals specific to bacteria control and well stimulation.

Brown is one of three principle partners in Caradan along with company president Raymond Doraty and operations manager Shane Clemmer. ɸ Page C14

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PIPELINE NEWS February 2012

Seeking total buy-in ɺ Page C13 All three leaders drive home their mission to provide customers with innovative chemical solutions to their oil and gas problems with a growing staff of 50 employees.

“We try to have our company have total buy-in with our personnel,” said Brown.

Tyler Murray, a blend plant operator, adjusts hosing equipment on a chemical blender at Caradan’s central manufacturing facility in Nisku.

“Employees are not there doing a job. They are providing a service, so they try to get involved in what’s happening in those facilities to not only offer chemical solutions, but also operational solutions.

“We have the ability to send a variety of personnel into a facility and not only look at just at what the chemical is doing but also the operational side of things to enhance and improve costs.

“Under these enhanced relationships, our clients have seen upwards of 25 to 30 per cent overall savings in their chemistry requirements.

“It is a substantial savings but it is a tremendous amount of effort on both sides to keep that relationship moving forward,” Brown said.

Swift Current has become one of Caradan’s busiest field hubs in the past three years and Brown doesn’t see any let up in 2012 with a new field office being set up.

“There’s a lot of new development in the Bakken in the Swift area so it’s a very hectic area for our people down there,” he said.

“We have done some business down in the Shaunavon area as well. Last year, we slowed a little bit in Shaunavon and concentrated most of our effort right in the Swift area.

“We have nothing in Estevan at this point. We have looked at it as a possible expansion area in the next year or so.”

Caradan is also seeing growth in the Swan Hills area of Alberta along with the Bonnyville area also chosen for expansion.

The company also has field offices in Wainwright and Drayton Valley.

“We try to find a balance between growth and service,” said Brown. “We never try to overload

Lab manager Mack Tomicki runs a water analysis test in an atomic absorpƟon analyzer to check for chemicals that cause corrosion. The Ňame in the analyzer aspirates the sample to “excite” the elements.

our personnel so they don’t have an opportunity to service their business properly.

“I spent 25 years in the field so I have a really good solid understanding of what it takes to do the business day-to-day and I won’t put my personnel in a position where they have to sacrifice home and family over business.

“We always look for tailored specific solutions to our clients in specific locations.”

PIPELINE NEWS February 2012

Keystone XL to pump U.S. employment Editor’s note: TransCanada Corporation’s proposed Keystone XL pipeline continues to be as fluid as the oil it would carry from Alberta’s oilsands to the U.S. Gulf Coast in Texas.

The Obama administration rejected the current application for the Keystone XL pipeline just hours before press time on Jan.18 citing the deadline imposed

by Congress didn’t leave enough time to review the project.

Under a payroll tax deal reached Dec. 23, House Republicans gave President Obama 60 days to either approve or deny the pipeline.

However, the pipeline project is not dead yet. The U.S. State Department memo said “the Department’s denial of the permit application does not preclude any subsequent permit application or applications for similar projects.”

TransCanada immediately said it plans to reapply for a presidential permit.

Calgary – TransCanada Corporation is playing its job creation card to bolster its case for U.S. approval of the proposed Keystone XL pipeline.

The Calgary-based company has released a detailed list of American workers required for the 2,574-kilometre pipeline from Montana to the U.S. Gulf Coast in Texas.

The job creation report estimates the $7 billion pipeline project would create a total of 20,000 jobs including 13,000 in construction and 7,000 in manufacturing.

“These are new, real U.S. jobs.

Thirteen thousand Americans would be put to work constructing our Keystone XL project,” said Russ Girling, TransCanada’s president and chief executive officer in a news release on Jan. 10.

“Seven thousand more jobs would be created in the U.S. manufacturing sector, making the materials needed to build Keystone XL.” The job creation report in support of the project comes ahead of a new Feb. 21 deadline for U.S. President Barrack Obama to permit the project under a compromise tax measure approved Dec. 23.

On Nov. 10, Obama chose to delay a decision on whether the pipeline meets U.S. national security interests until after this year’s presidential elections, pending a new pipeline route around the sensitive Sandhills watershed in Nebraska.

Complicating matters is that fact Nebraska’s Department of Environmental Quality (DEQ) says it will take at least six months to choose and approve the new route. ɸ Page C16

Thousands of American jobs, doing work similar to the 2009 Enbridge Alberta Clipper project seen here, are there for the taking, should the Keystone XL project get the go-ahead.

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Jobs on hold Éş Page C15 Before work on the reroute can fully proceed, the DEQ and TransCanada have both said they need a memorandum from the U.S. State Department outlining the state agencyâ&#x20AC;&#x2122;s involvement in the process.

Keystone XL has the capacity to deliver 830,000 barrels of oil per day to U.S. reďŹ neries in Cushing, Oklahoma and the Gulf of Mexico.

Up to 25 per cent of that capacity has been provided for the delivery of U.S. domestic oil

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from the Bakken ďŹ elds in Montana and North Dakota and oil from Cushing.

Long-term, binding contracts for more than 150,000 barrels per day from the Bakken ďŹ elds and Cushing have already been signed.

These facts, according to TransCanada, support the desire in the United States to ultimately achieve domestic energy security. â&#x20AC;&#x153;The fundamental issue here is that the U.S. imports 10 million barrels of oil each day â&#x20AC;&#x201C; forecasts predict that will not change for decades,â&#x20AC;? said Girling. â&#x20AC;&#x153;So the question is, where will that oil come from? Will it come from U.S. and Canadian sources or will it continue to be higher priced conďŹ&#x201A;ict oil from the Middle East and Venezuela â&#x20AC;&#x201C; regions that do not share American values?â&#x20AC;?

TransCanada is doing its best to sell U.S. politicians and voters on the economic merits of the project, estimating 500 workers are required for each of the 17 pipeline spreads or segments totalling 8,500 jobs.

The Keystone XL also needs 30 pump stations worth tens of millions of dollars with 100 workers per station for a total of 3,000 jobs.

Add to that another 600 jobs that would be needed for the six construction camps and tank construction at Cushing, Oklahoma.

TransCanada estimates employment

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for construction, management and inspection oversight would create 1,000 jobs, bringing the overall Keystone XL total to 13,000 direct, on-site jobs.

Keystone XL would require hundreds of millions of dollars worth of materials and related services for items such as the steel pipe, thousands of ďŹ ttings, hundreds of large valves, fabrication of piping assemblies and structural steel for supports.

The project would also require thousands of other pieces of equipment used to build such parts and equipment as transformers for pumping stations, meters to measure the amount of oil delivered, large electric motors for operating pumps and cabling and electrical equipment to connect the vast pipeline monitoring systems.

TransCanada noted that it alone has contracts with over 50 suppliers across the U.S. with a list of manufacturing locations for equipments in 18 states.

Construction of Keystone XL is expected to create 7,000 manufacturing jobs. The key support companies include: Welspun (pipe from Arkansas), Cameron (valves from Louisiana), Siemens (pumps, motors and related control equipment manufactured in Oregon, Ohio and Indiana) and dozens of other companies manufacturing everything from nuts and bolts to complex electrical control equipment. ɸ Page C17

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2 for 1 jobs ɺ Page C16 TransCanada notes that for every two jobs created in the Alberta oilsands, the source of Canadian oil shipments on the Keystone XL, one job is created in the U.S. The jobs report notes at least 1,000 American companies supply goods and services to Canadian oilsands and pipeline companies such as Berg Steel Pipe in Houston, Siemens Energy from California and the Michelin plant in Greenville, South Carolina.

TransCanada noted the $6 billion existing Keystone pipeline that has delivered over 160 million barrels of oil to the U.S. Midwest since the summer of 2010 created 9,000 construction jobs and thousands more manufacturing jobs.

C17

A typical union-based pipeline/segment for Keystone XL would employ Americans in the following posiƟons: Keystone XL - Jobs per pipeline spread/segment Quality Control

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24 2

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9 66

Purchasing Agent Operator

2 152

Teamster semi Teamster regular

24 23

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28

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16

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27 111

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PIPELINE NEWS February 2012

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C19

Keystone XL adds shipping volume Calgary – TransCanada Corporation strengthened its business case for its proposed Keystone XL pipeline with additional binding crude oil shipping commitments from the Keystone lateral open season in Houston, Texas.

The complete Keystone pipeline system designed to transport crude oil from Hardisty, Alberta to the U.S. Gulf Coast in Texas has now secured long-term firm contracts in excess of 1.1 million barrels per day.

The latest Houston shipping commitment has prompted TransCanada to proceed with plans for an approximately 80 kilometer pipeline extension from the proposed Keystone XL system subject to regulatory approval.

The extension, called the Houston Lateral, will facilitate deliveries into the Houston refining market and increase the capacity of Keystone XL to 830,000 barrels per day.

“This significant demand and additional long-term customer commitments confirm the continued strong shipper support of TransCanada and the need for Keystone XL to move forward,” said Russ Girling, TransCanada’s president and chief executive officer on Dec. 15.

“Proceeding with the extension of the Keystone XL system to Houston and increasing capacity on the pipeline system will further enhance the connection of a secure, growing and reliable supply of Canadian crude oil and domestic U.S. crude oil with the largest refining market in North America while providing additional flexibility to our shippers.”

The Keystone Houston Lateral facilities will more than double the U.S. Gulf

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Coast refining market capacity directly accessible from the Keystone system to more than four million barrels per day by providing access to the key refining market in the Houston area.

The Keystone Houston Lateral and capacity expansion are included in the original scope of the Keystone XL U.S. Presidential Permit application process which received a Final Environmental Impact Statement in August 2011.

The U.S. State Department subsequently delayed its decision on the Keystone XL until the first quarter of 2013 citing the need for further assessment of an alternative route for Keystone XL in Nebraska.

The Keystone XL including the Houston Lateral, is expected to be in service by the end of 2014 following regulatory approval.

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PIPELINE NEWS February 2012

Smart Sponge de-oils frac water Scottsdale, Ariz. – Shale gas plays in northeastern British Columbia and North Dakota could be future markets for a produced frac water filtration technology called Smart Sponge.

Smart Sponge is a product developed and manufactured by AbTech Industries Inc., a subsidiary of AbTech Holdings Inc., in Scottsdale, Arizona to remove hydrocarbons from waste water and produced water.

AbTech successfully field tested Smart Sponge at a shale gas site in Wyoming in November to prove its commercial potential in the oil and gas sector.

Smart Sponge removed 99.99 per cent of hydrocarbons from produced frac water while achieving materially lower costs per barrel of produced water treated.

“We are actually already installed at a couple of sites and there’s more coming,” said AbTech’s chief operating officer Jonathan Thatcher in a Dec. 19 phone interview.

“We are in Wyoming right now and are working with additional partners there. Other areas are

new area to us but we are getting inquiries and interest from many areas.”

The removal of hydrocarbons with Smart Sponge has a value-added benefit of increasing the useful life of downstream water treatment equipment and technologies such as electro-coagulation and reverse osmosis.

“The results we achieved confirm that Smart Sponge technology is a viable, cost-effective technology for de-oiling produced water and protecting more expensive downstream treatment technologies,” said Thatcher in a November news release.

“Through this documented substantive performance, we look forward to a successful expansion into the oil and natural gas energy sector.”

Thatcher says AbTech has worked on Smart Sponge applications for stormwater systems is Eastern Canada and has a product distributor in Calgary with potential shale gas clients in Western Canada.

“I would love to work in British Columbia, and we just started to get inquiries in North Dakota as well,” Thatcher told Pipeline News.

“There are some big shale gas deposits that are

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This is a photo of Smart Sponge being installed at a shale gas fracking site in Wyoming to remove hydrocarbons from waste water and produced frac water. The U.S. based company has an oĸce in Calgary and says its water ĮltraƟon technology can be applied to treat produced water from Bakken shale oil fracs in southeastern Saskatchewan as well as produced water from shale gas fracs in northeastern BriƟsh Columbia. Photo submiƩed

there and just starting to be exploited. We are very happy to work in both places.”

AbTech’s products such as Smart Sponge are based on polymer technologies which cause pollutants such as hydrocarbons and stormwater run-off contaminants to adhere to the inner core of an absorbent material and solidify.

The field test in Wyoming included the installation of pretreatment filter systems operating at variable flow rates between 150 and 300 gallons a minute with flow rates up to 450 gallons a minute at more recent demonstrations.

As produced water passes through the filter containing Smart Sponge, the polymers trap and solidify pollutants.

The filter vessels are sized based on the flow rate and level of contaminant that’s going to be in the water.

When the Smart Sponge filter media has done its job, it can be cleaned out by a vac truck and replaced.

“There is no backwashing or anything like that is required. With Smart Sponge you just use it until it’s spent and then replace it,” said Thatcher. ɸ Page C23

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C23

Salinity does not affect this media ɺ Page C22 Thatcher says the end product can be disposed of safely at a landfill site because Smart Sponge permanently binds hydrocarbons to the polymers or it can be re-used as a power source in a waste energy facility or in a cement kiln.

AbTech has focused its environmental technologies to address issues of water pollution and contamination primarily for stormwater since its inception in 1996.

AbTech hopes its flagship Smart Sponge technology can help quiet the debate, whether fracking is sustainable or harmful to the environment.

“There is growth potential for treating frac water,” said Thatcher. “Producers need to use and re-use an awful lot of water and that’s a big concern.

“But also in produced water – gen-

erally in places like Texas where there are significant issues with drought – if you have another water source, you might as well capture that water source, treat it and then re-use it for agricultural purposes.”

A product such as Smart Sponge could also be applied to treating produced frac water in the Bakken oil shale play of southeastern Saskatchewan and North Dakota.

“Smart Sponge is

very effective as a deoiling step on the front end of treatment trains that may include other technologies such as electrocoagulation or reverse osmosis,” said Thatcher.

“All of those technologies get impacted by free oil and it makes them less efficient as you have to replace membranes and other sort of sacrificial plates.

“For those companies, it’s a way to protect that downstream technology, and then

other contaminants that might be in the water don’t affect our media at all, so we just do the de-oiling, and other technologies can take care of the other organic compounds that might be present,” Thatcher said.

AbTech is also venturing into the nuclear energy with a com-

obviously, you have a product you can take to a waste energy facility. You have another benefit from it.

“There are essentially three different companies that we’ve worked with to put our technology at the front end.

“The salinity of the water and a lot of

pound the company has combined with Smart Sponge to remove radioactive nuclides.

The company’s offerings include a new antimicrobial technology called Smart Sponge Plus that reduces coliform bacteria found in stormwater and industrial and municipal wastewater.

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C24

PIPELINE NEWS February 2012

New RONA and Co-op Macklin – News that a larger RONA store will be finally be built this year on a new commercial site fronting Highway 14 in the town of Macklin deserves a mention in local history books.

The construction of the new building starting as early as this spring, along with a new Co-op Marketplace, will take place during the town’s centennial year to be officially celebrated Aug. 2-5.

Robin Cosh, who owns and operates the existing cramped RONA store and lumber yard downtown with his wife Lorie, says there is little time to eat centennial cake with the expansion top of mind.

“It’s going to be nice to have one yard. Right now, we’ve got parts of three yards and forklifts driving all over hell all the time,” said Cosh.

“Now we will be in one yard and we won’t be unloading trucks in the street.

Everything will be inside the confines of the yard.

“The yard will actually be nicer to have than the store, to tell the truth. The completion date for the building is the end of the year.”

Cosh initially told the Pipeline News about the expansion plans a couple of years ago, but it took the Town until last year to service the 40-acre subdivision along Highway 14 near the intersection of Highway 31.

The new 14,000 sq.-ft. building will sit on a 5.3 acre site and will be adjacent to the 1.5 acre site of the new Co-op Marketplace that will replace the existing food outlet on the main street.

Cosh says the two high profile commercial developments should create a little excitement for highway traffic.

“They have already got the Co-op going and there is talk of a Subway,” he said.

“We will see where it goes from there. That will be good for the community. Our big draw will be from the west.”

Highway 14 runs across the Alberta border and becomes Highway 13 to Provost and west to Edmonton.

Asked if the construction of the two stores is a reflection of the strong oil and gas sector in the area, Cosh says he doesn’t think so, noting the plans for the new RONA and Co-op kept moving forward even during the downturn.

“The oil and gas goes up and down and these plans don’t change with that.

I won’t say it’s tied to the hip,” said Cosh, who retired at an early age from the industry in 2006 when an opportunity to buy the store came up during its 10-month closure.

Cosh re-opened the doors for good on Nov. 6 that year and is quick to say

Robin Cosh and his wife Lori, who own a small RONA store in downtown Macklin, have been paƟently waiƟng a few years for the approval of a new RONA store. ConstrucƟon is expected to begin this spring – during the town’s centennial year – at a new commercial subdivision fronƟng Highway 14.

he prefers his new line of work to his previous job running three coil tubing units for Winterhawk Oilfield Service Ltd. “It’s good. It’s a great business. I don’t miss the trucks at all. People always ask if I miss the oilpatch,” he said.

“I wasn’t terribly sick of the oilpatch, but I was tired of trucks. I was glad to be done with trucks. I had those coil tubing units – high maintenance units – incredibly high maintenance.

“You stand around all day and watch them work and fix them all night.

This is more fun.”

Cosh says a lot of his customers work in the oil and gas industry and he is well aware the industry is on another roll heading into 2012.

“It’s good – strong. There’s lots of drilling going on,” he said.

“It quieted down at the end of the year, but it seems like everybody’s going to go hard now that they’ve got their new budgets out. The oilpatch will be strong for sure.”

Cosh says metal cladding represents about 10 per cent of their sales at RONA, but he notes they do proportionately well on their 1.4 per cent sales of 3-by-12 timbers – just one product SKU – used as a base for oil tanks.

“They will take 16 of them and set them down and set the tank on top so it’s not sitting right on the gravel,” he explained.

Asked if he plans to carry more oil and gas related products at the new location, Cosh says the expansion will focus on plumbing and electrical inventory.

The Grass Is Greener at G-Force Diesel!

Voted as the Best Place to work in Lloydminster area!

We have room for 3rd Year & Journeymen

WELDERS

At G Force you will be MORE than a number! We want you to enjoy your career and include you in our staff functions like bus trips to NHL games & diesel truck drag races! Become part of an extremely experienced and KNOWLEDGEABLE team that works in a 20 bay shop with STATE OF THE ART equipment.

OWNER OPERATED since 1997 with branches in LLOYDMINSTER and ESTEVAN. There is lots of room for ADVANCEMENT.

No shift work - Monday-Friday 7 - 5, 1 hour Overtime per day!

We offer yearly bonuses, full benefits and COMPETITIVE WAGES and a negotiable moving allowance!

Fax resume to HR Department at 306-825-3246

We are Western Canada’s PDI Distributor (CAT C15, ISX & Detroit Series 6O) ∙ Programmed ECM’s ∙ HI Flow amd Stronger Exhaust Manifolds ∙ HI Flow Fuel Injectors · Larger Turbos ∙ FASS Fuel Systems ∙ Vibration Dampers ∙ Lipe Clutches∙ Hi Lift Camshafts ∙ Intake Manifolds (ISX)

20 Service Bays Monday to Friday 7:00 AM - 5:00 PM

4403 - 37th Ave. Lloydminster, SK

(306) 825-2875 www.gforcediesel.com

PIPELINE NEWS February 2012

C25

Microseismic Áush with new contracts Houston – MicroSeismic Inc.’s (MSI) real time fracture monitoring technology continues to gain ground in unconventional plays, with new and existing clients adding wells to their monitoring programs for 2012.

The Houston, Texas completions technology company featured in the December issue of Pipeline News reports its third quarter business backlog in 2011 was up 86 per cent to $41 million compared to the same period a year ago.

The company’s surge in business is due in part to a recent $5.7 million contract by Whiting Petroleum for MSI’s microseismic monitoring services of their hydraulic fracturing operations in the Williston Basin in North Dakota.

“MicroSeismic’s fracture monitoring process is one of the key technologies Whiting is using to optimize hydraulic fracturing,” said James J. Volker, chairman and CEO of Whiting, in a Dec. 19 news release.

The contract includes monitoring of all Bakken and Three Forks wells over a 157 square mile area in the Sanish Field in North Dakota.

MSI has previously monitored 148 wells over 18 months for Whiting, using their trademarked BuriedArray data acquisition service.

This new contract will include monitoring an additional 100 wells in 2012.

The contract was awarded based on past performance with MicroSeismic’s technology that provided information Whiting used to optimize well planning resulting in enhanced production and recovery.

MSI also landed a contract for microseismic monitoring with Gastar Exploration in an undisclosed unconventional shale play in the United States.

MSI’s monitoring with its BuriedArray seismic data acquisition service is designed to show operators how rock is breaking as a result of fracturing.

This enables them to optimize well parameters such as spacing and fracture staging for increased

production and recovery as well as identify and avoid potentially sensitive geological areas.

“Our buried microseismic monitoring array at Sanish field is a key component to our development program,” said Volker.

“MicroSeismic Inc. has been an exceptionally strong supporting partner in the design and implementation of this technology.”

The BuriedArray technology features permanently installed geophones can monitor multiple wells and frac operations over a 1,300-square kilometre area.

The monitoring service uses MSI’s passive seismic emission tomography, or PSET technology

www.kelro.com

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which collects data from the geophone array and processes it to show, in real-time, how fractures are propagating during the frac job.

“Our clients are reaping the benefits of monitoring using our BuriedArray and PSET technology,” said Bill Coates, president and CEO of MSI. “Not only are they achieving enhanced production and recovery levels, they are gaining a better understanding of how the reservoir responds to production activity over time.

“We’re providing information in real-time enabling them to adjust their completion parameters and maintain strong production over the life of their field,” Coates said.

C26

PIPELINE NEWS February 2012

Career Opportunities NOW HIRING

Looking for

Vac Truck and Steamer Operators 1A or 3A driverâ&#x20AC;&#x2122;s license preferred.

We offer: housing, competitive wages, full benefits package, safety bonuses

â&#x20AC;˘ Class 1A Drivers

Fax resume to: 483-2132 or email amanda@courageoilfield.com

â&#x20AC;˘ Dispatcher â&#x20AC;˘ Mechanic

â&#x20AC;˘ Duties include payroll, data entry & Miscellaneous ofĂ&#x20AC;ce duties.

â&#x20AC;&#x153;Pipeline on Wheelsâ&#x20AC;?ÂŽ

Send resumes umes to: spartantrucking@sasktel.net or fax to 306.453.4495 Possible Accommodations Available Spartan Trucking Inc. - Carlyle, SK 306.453.4494

Neilburg & Edam

Please send resume to:

The Hydraulic POWER House Norcan Fluid Power was established in 1974 and has grown to EHFRPH :HVWHUQ &DQDGD¡V 3UHPLHU VXSSOLHU DQG UHSDLU IDFLOLW\ RI K\GUDXOLF FRPSRQHQWV DQG H[SHUWLVH Norcan is looking to expand its operation to your area! ,I \RX DUH DQ DJJUHVVLYH GHGLFDWHG LQGLYLGXDO ZLWK D JUHDW ZRUN HWKLF ZH ZDQW WR VSHDN ZLWK \RX :H DUH ORRNLQJ IRU ORFDO

Qualifications: â&#x20AC;˘ Class 1 License â&#x20AC;˘ Current Driverâ&#x20AC;&#x2122;s Abstract â&#x20AC;˘ Truck equipped with fluid pump and positive air shut down

Manager, Service Technicians Sales Technicians and Parts Persons )HHO IUHH WR IRUZDUG VXSSRUWLQJ FHUWLĂ&#x20AC;FDWHV GLSORPDV UHIHUHQFHV RU DQ\ RWKHU PDWHULDOV WKDW GHPRQVWUDWH ZK\ \RX ZRXOG EH D JUHDW candidate! /HDUQ PRUH DERXW XV YLVLW RXU ZHEVLWH DW ZZZ QRUFDQĂ XLGSRZHU FRP

Send resumĂŠs to: Human Resources Phone: 877-875-5358 Fax: 780-875-5825 Email: info@heavycrudehauling.com

Journeymen Electricians and Apprentices PowerTech Industries Ltd. in Estevan is seeking Journeymen Electricians and Apprentices for work in the Southeast Saskatchewan Oil & Gas Industry.

Experience: 1 year (preferred) Safety Certificates are needed. 1st Aid/CPR, H2S, WHMIS. Applicants must have a valid driverâ&#x20AC;&#x2122;s license. Oilfield background preferred. Full benefits packages and RSP plan.

Duties: Day to day electrical construction and maintenance in the oilfield.

Wage/Salary Info: Depending on experience & qualifications.

To Apply: Fax: (306) 637-2181, e-mail sschoff.pti@sasktel.net or drop off resume to 62 Devonian Street, Estevan, SK.

â&#x20AC;˘ Located about 10 miles out of Lloydminster. â&#x20AC;˘ Experience in Quickbooks an asset, however, willing to train.

for tank trucks in oilfield

Sub-Contractors Wanted for Lloydminster, Maidstone,

Part Time OfĂ&#x20AC;ce Position

)RUZDUG \RXU UHVXPH LQ VWULFW FRQĂ&#x20AC;GHQFH WR Mr. Wes Hamm, General Manager Norcan Fluid Power Ltd. 3503 Faithfull Ave Saskatoon, SK S7K8B3 Or by Email: ZKDPP#QRUFDQĂ XLGSRZHU FRP

Box 45 Lloydminster SK, S9V 0X9 or Fax: (780) 846-0005 Email: jobresumes@hotmail.ca

Career opportunity

Product Development Manager Responsible for leading all aspects of company R&D including new product development and improvement of existing lines. Duties to include collaboration with product managers and customers on design, improvements and applications of non-standard manufactured products.

QualiĂ&#x20AC;cations:

Aries Excavating Inc. NOW HIRING

Trackhoe Operators - immediate start date - pipeline experience a must - employment is located in SE Sask and SW Manitoba Email Resume To: ariesexcavating@gmail.com

â&#x20AC;˘ Post-secondary degree in engineering, design or a related Ă&#x20AC;eld required. â&#x20AC;˘ Minimum 5 years in Product design experience. â&#x20AC;˘ ProĂ&#x20AC;ciency in using AutoCAD and Solidworks. â&#x20AC;˘ Proven analytical skills and the ability to identify customer needs and the ability to effectively communicate them. â&#x20AC;˘ Able to read and interpret engineering drawings and speciĂ&#x20AC;cations. â&#x20AC;˘ Excellent organization and project management skills, including the ability to multitask in a fast paced product development environment. â&#x20AC;˘ Able to work with minimal supervision. â&#x20AC;˘ Detail oriented. â&#x20AC;˘ Analytical and creative thinker.

For more information please visit: http://gritindustries.com/ employmentProdDevManager1112.php Compensation will be based on experience.

Please send resume and salary expectations to: Janice Van Berkel, Human Resources Manager via e-mail at: jvanberkel@gritindustries.com or via fax at: (780) 808.8415

We thank all applicants for your interest. However, only those considered for an interview will be contacted.

WWW.GRITINDUSTRIES.COM

PIPELINE NEWS February 2012

Career

Opportunities

C27

THE FOLLOWING POSITIONS ARE AVAILABLE IMMEDIATELY PICKER OPERATORS Applicants must have a Class 1 with an A or B license and a clean Driverâ&#x20AC;&#x2122;s Abstract. Safety tickets considered an asset. Must be able to pass mandatory drug and alcohol testing. Job involves general oilfield hauling and setting pumpjacks.

OWNER - OPERATORS Haul pipe and oilfield equipment to locations in SE Saskatchewan and into the U.S. Applicants must have a Class 1A driverâ&#x20AC;&#x2122;s licence and pass mandatory drug and alcohol testing. Safety tickets would be an asset. Duties include: load, haul pipe and supplies to destination in a safe and timely manner & unload.

Maintain a clean and safe truck.

SWAMPERS

Some of the many benefits to consider when applying for a position at Bert Baxter Transport in Estevan: â&#x20AC;˘ Full time, permanent employment â&#x20AC;˘ Full benefits packages available â&#x20AC;˘ Clean, safe work environment

Interested applicants can fax to: 306-634-4258 or email: brenda.jensen@bbaxtertransport.ca

Canyon is the fastest growing fracturing company in North America. We deliver quality customized pressure pumping and service solutions to the oil and gas industry, improving our industry one job at a time. If youâ&#x20AC;&#x2122;re looking for a career with a leading organization that promotes Integrity, Relationships, Innovation and Success, then weâ&#x20AC;&#x2122;re looking for you.

Now hiring Canyon Champions for the following positions:

Supervisors: Fracturing, Nitrogen, Coil, Cement & Acid Operators: Fracturing, Nitrogen, Coil, Cement & Acid Class 1 or 3 Drivers Applicant Requirements:

f f f

f f f

Self-motivated Willing to work flexible hours Current drivers abstract

Why Canyon?

f f f f

Dynamic and rapidly growing company Premium compensation package New equipment 3 weeks vacation to start

f f f f

Safety-focused Team oriented Clean Class 1 license an asset. Must have Class 3 or 5 (training provided)

is presently hiring

SUPERVISORS & OPERATORS

Paid technical and leadership training Career advancement opportunities Paid flights for rotational program Seasonal work programs available

We thank all applicants; however only those selected for an initial interview will be contacted.

For its expanding How to apply: email: hr@canyontech.ca fax: (306) 637-3379 website: www.canyontech.ca

Production Testing Division â&#x20AC;˘All applicants must have a valid class 5 driverâ&#x20AC;&#x2122;s licence.

Blowboxes are invalid. â&#x20AC;˘Must have up to date safety tickets H2S, WHMIS & CPR/First Aid â&#x20AC;˘Able to work 12 hour shifts/days/nights â&#x20AC;˘Able to work weekends and stats â&#x20AC;˘Supervisors must have ample experience operating pressure vessels on sour wells, acid jobs, Nitrogen blowdowns, drillouts and on high pressure fracs.

All applicants MUST pass a pre-employment substance abuse test.

Contact Dale at 861-3635 ! " ! ! ! $ ! ' " # & #, !" "& !# " !' " ( &"# !" # ! , # ( ! ' ! " ! ( " ! ' $ & ' $ !& #&! " ) ! $ ! & $ , # # # # " # ! $ *.

! " ) ! # " ! # ( " $ " ( # &! ! " # " !' ' " "-

SpeciĂ&#x20AC;c Targeting Contact your local pipeline sale rep. to get

28,000 Circulation on your career ad!

# ) ' # #% " % ) # ' # " ) # ' # * $ " ) ' # ! " !" $$' " !*, &" ! " ' #" . * & ! # ! "# &!# ! ! $ &# ! " # ' !#& $ " " # $$$( ( ! * * ) # /5240 326.3627

- -

PIPELINE NEWS February 2012

Farm Kitchens Inc.

Career Opportunities

41031824

C28

Camp catering company requires Experienced Camp Cooks , Second Cooks. And Camp Attendants Please email your resume to info@farmkitchensinc.com or fax your resume to 780-452-0880.

Pump Unit Mechanic Helpers DRIVER Minimum QualiÀcations: • 1 G license • OilÀeld tickets including H2S Alive & 1st Aid/CPR • Live in or within 10 minutes of Estevan We are seeking candidates with an oilÀeld background and/or customer service experience. We will train the right individual.

We offer excellent compensation and Áexible days off. Retired persons, women and visible minorities are welcome to apply.

Call Clinton at 461-8471 or mail resume to Box 208, Estevan S4A 2A3

Hydrovac Operators and Swampers • Offering excellent wages • Excellent beneÀt package available • Willing to train if necessary • Safety tickets an asset • Operators must possess class 3A driver’s license • Living accommodation available

For more information call: Trevor at: 306-483-7777 or Kim at: 306-483-7722 Email resumes to: extremeexcavating@hotmail.com or fax to: 306-483-2082

• Experience an asset but willing to train • First Aid & H2S certiÀcations an asset but willing to train.

• Permanent full time position • Competitive wages, full beneÀt package Apply in person or fax resume to 306-634-7090

Hank’s Maintenance & Service Co. Ltd. 410 Mississippian Drive Estevan, Sask. S4A 2H7 No phone calls please!

Journeymen Picker Operators & Swampers • Willing to apprentice swampers for Journeyman Ticket • First Aid & H2S an asset Send Resume and Drivers abstract to: Email: info@dekkeroilfield.com Fax: 780-874-9970 Drop in: 4501 62nd Ave Ph: 780-874-9960

OVER 50 YEARS STRONG IN OILFIELD CONSTRUCTION A R N E T T & B U R G E S S Oilfield Oilf O Oi lfie lf ie ld Construction ield C on onst st ruct stru ru ctio ct ion io n Limited Limi Li mi ted mite te d

NOW We’re hiring for various Pipeline construction projects in the Regina area.

Over 50 years strong, Arnett & Burgess Oilfield Construction Limited safely provides quality pipeline construction, facility installation, pipeline integrity, custom fabrication, maintenance and related contruction services to the energy industry.

Electrical Helpers (No experience required)

or 1st & 2nd year Electrical Apprentices Safety Tickets an asset but not necessary

Competitive Wages Offered Health Plan, RRSP’s & Bonuses Forward Resume to: Fax: (306) 634-5545 E-mail: clarkizsak@sasktel.net Ph: (306) 634-9424 Cell: Clark Izsak - 421-2914 Mail: Box 362 Estevan, SK S4A 2A4 Or apply in person to 102 Perkins St.

Required

requires a full time

COME JOIN OUR TEAM!

NOW HIRING

Hiring

All positions require previous experience in Pipeline Construction.

Previous experience on Pipeline Integrity projects is an asset.

• PIPELINE LABOURERS • PIPELINE FOREMAN • SUPERINTENDENTS • HEAVY EQUIPMENT OPERATORS • WELDERS HELPERS • WELDERS WITH B PRESSURE • PIPE FITTERS

For more details and other career opportunities please visit: www.abpipeliners.com For Inquiries please call: 403.290.7800

Compensation: Highly Competitive wages Overtime Daily Subsistence

Preferred Certifications H2S Alive Standard First Aid & CPR

Required Certifications Driver’s License Ground Disturbance – Heavy Equipment Operators only

Please submit your resume to : info@abpipeliners.com

OilÀeld ~Industrial~Residential

PRAIRIE PETRO-CHEM PRAIRIE PETRO-CHEM is looking to Àll four (4) Full-Time positions: CHEMICAL DRIVER (2 positions): Prairie Petro-Chem requires Truck Drivers to operate light to medium duty trucks for transportation and delivery of oilÀeld Chemicals. Drivers are dispatched out of Estevan and will be making day trip deliveries within SE Sask. and SW Manitoba. Driver will be required to load and unload as well as operate a forklift, pumping equipment, etc.. A Class 1 driver’s license is not required but would be an asset. Position may encounter all kinds of road, weather and trafÀc conditions. The qualiÀed applicant must possess the ability to work without direct-supervision, and deliver the load on-time and in a safe manner that complies with regulations. Weekend work and overtime may be required. Valid Class 5 driver’s license and abstract are required. Starting salary will be based on general oilÀeld experience & ability. Other assets would include any mechanical experience, Forklift training, H2S, WHMIS, TDG and Defensive Driving certiÀcates.

ADMINISTRATIVE ASSISTANT We have a position that has opened up in our admin team. It is a full time permanent position in the Estevan ofÀce. The duties of the position to be Àlled will vary dependant on the skillset of the applicant but will mainly be focussed on customer service. Assets that would be beneÀcial to the position(s) include: - Excellent phone skills in dealing with customers.

- Billing & accounts receivable experience - Experience using Microsoft OfÀce - Experience administering MSDS and general oilÀeld knowledge - Any Previous System Administration knowledge MAINTENANCE LABOURER Prairie Petro-Chem requires an energetic, motivated and career-minded individual responsible for performing a variety of duties related to the recycling of drums and containers, general shop cleaning, maintenance activities, and performing related duties as assigned. Starting salary will be based on general experience & abilities.

BENEFITS: - Salaries will be based on education, experience & abilities - Dental, Medical, Life coverage & Retirement beneÀts Any interested applicants can forward resume to: Email: Blane.Fichter@petrochem.ca Fax: 306-634-6694 or drop off at the ofÀce at 738-6th Street, Estevan

PIPELINE NEWS February 2012

NOW HIRING Frontier Peterbilt Sales Ltd. Lloydminster

Estevan

View All Careers at: www.frontierpeterbilt.com

Career

Opportunities

Frontier Peterbilt Sales Ltd. is an enterprising truck dealership with operations in Saskatoon, Regina Lloydminster and Estevan. Our ongoing development and phenomenal growth in the Truck Sales industry are evidence of the company's commitment to offering customers a comprehensive range of products which perform at optimum efficiency and provide valuable benefits.

WE ARE EXPANDING

We are taking applications for a

FULL RIG CREW

Lloydminster & Estevan xHeavy Duty/Truck & Transport Technicians

We have built a high level of customer trust and satisfaction through our new and used truck inventory and parts availability and reliability, strong geographic presence, premium service, and unparalleled value. We have a strong mandate to continue to grow in the marketplace and to provide quality service for sales, repairs, and maintenance.

Now hiring 2nd, 3rd or 4th year apprentice or Journeyperson Technicians to:

x Provide quality repairs/maintenance x Advise shop foreman of additional

WORK BASED OUT OF ESTEVAN - BENEFITS AVAILABLE - WAGES ABOVE INDUSTRY STANDARD -

repairs/maintenance required Frontier Peterbilt Sales Ltd. continually offer opportunities for our employees' career development, we have created an organization and a working environment aimed to attract, empower, reward, and retain the most dedicated, talented, and passionate individuals.

C29

x Complete repair order annotations These positions offer a competitive and comprehensive compensation package.

Apply online today at: www.frontierpeterbilt.com While Frontier Peterbilt appreciates all applications received, we advise that only candidates under consideration will be contacted. Thank you for your interest for employment with Frontier Peterbilt Sales.

APPLY TODAY! In person: 1009A 6th Street, Estevan Fax: 634-7754 Email: cliff@grimeswell.com www.grimeswell.com

Carson Energy Services is a wholly owned company of Flint Energy Services and provides energy services across Saskatchewan and Manitoba. Our employees’ safety is our foremost priority and our safety management system is world-class.

Carson’s benefits package and training and development programs are one of the key reasons why candidates choose Carson as their ‘employer of choice’. At Carson, we provide employees with all of the tools they need to grow and excel both personally and professionally.

Building Leaders.

Driving Success.

1Ͳ866ͲGOͲFLINT www.Ňintenergy.jobs

We are currently seeking applicants to work in our East Region locations at Lloydminster, Saskatoon, Shaunavon, Swift Current, Regina, White City, Halbrite, Lampman, Estevan, Carlyle, Alida, Wainwright, and Virden.

Heavy DutyMechanics Mechanics (Journeymen and Apprentice) Heavy Duty (Journeymen and Apprentice) Electricians (Journeymen and Electricians (Journeymen andApprentice) Apprentice) and Apprentice) Welders (Journeymen Welders (Journeymen and Apprentice) and Apprentice) Pipefitters PipeÀ tters(Journeymen (Journeymen and Apprentice)

Safety Personnel

Crew Foreman Crew Foreman Labourers HIRING NOW Labourers Equipment Operators Equipment Operators Picker Operators Picker Operators Truck Drivers (Class 1 + Class 3) Truck Drivers (Class 1 + Class 3) Directional Drilling Operators

Directional Drilling Operators Instrumentation Mechanics (Journeymen and Apprentice) Instrumentation Mechanics (Journeymen and Apprentice)

APPLY NOW at www.flintenergy.jobs or call our Recruitment team at 1-866-GO-FLINT (1-866-463-5468)

C30

PIPELINE NEWS February 2012

Resources Guide

Quality

LAMICOIDS & metal cable tags EfĂ&#x20AC;cient Service

NorseStar Ventures Inc. Light OilĂ&#x20AC;eld Hot Shot Steam Truck Services

Call Linda for more information

Estevan Trophy & Engraving

(306) 621-7621 (306) 457-8283

Phone: 634-6005 â&#x20AC;˘ Fax: 634-6405 Email: estevantrophy@sasktel.net

Dwight G. Blomander, CFP, CLU, CH.F.C., CHS Lloyd Lavigne â&#x20AC;˘ Kirk Clarkson Owners/Managers 5315 - 37th Street Provost, AB T0B 3S0

6506 - 50th Avenue Lloydminster, AB

Phone: (780) 875-6880

Phone: (780) 753-6449

Fax: (780) 875-7076

2P[VPah # " !%# '! %

2Pa[h[T " % #$" !$""

fff \X[[T]]Xd\SXaTRcX^]P[ R^\

24 Hour Service Specializing in Industrial & Oilfield Motors

E

7^aXi^]cP[ Â&#x2019; 3XaTRcX^]P[ Â&#x2019; FT[[ <^]Xc^aX]V

LECLAIR TRANSPORT General OilďŹ eld Hauling

RICK CORMIER Manager

Box 609 Carlyle, SK S0C 0R0 www.truetorq.ca

Bus: (306) 634-8084 Cell: (306) 577-8833 Fax: (306) 453-6075 ttorq@hotmail.com TERRY DODDS (24 hrs.) (306) 634-7599 Cell. (306) 421-0316

M.E.T. OILFIELD CONST. LTD. â&#x20AC;&#x153;All Your Construction and Maintenance Needsâ&#x20AC;?

SPECIALIZING IN: ENGINES, PUMP UNITS, UNIT INSPECTIONS, PIPE FITTING, TREATERS AND PRESSURE TICKET WELDING Box 1605, Estevan, Sk. S4A 2L7 Cell. (306) 421-3174, (306) 421-6410, (306) 421-2059 Fax: (306) 634-1273

Lyle Leclair Cell: 306-421-7060

S4A 2A3

* OilĂ&#x20AC;eld * Residential * Commercial * Industrial * Electrical * Plumbing * Flooring/Tile

Complete Construction Work â&#x20AC;˘ Big or Small FREE Estimates â&#x20AC;˘ Low Up Front Pricing â&#x20AC;˘ 24/7 Service â&#x20AC;˘ ESA & TSSA Registered â&#x20AC;&#x153;FULLY LICENSED & INSUREDâ&#x20AC;? www.aemhelp.info Toll Free

cordell.janssen@nov.com â&#x20AC;˘ www.nov.com

105, 335 Hoffer Drive, Regina, SK. S4N 6E2

Canada's leading distributor of industrial, Ă eet and safety products.

Proud to provide selection, quality and excellence to our customers.

JUSTIN WAPPEL - Division Manager 401 Hwy. #4 S. Biggar, Saskatchewan PO Box 879 S0K 0M0 Ph (306) 948-5262 Fax (306) 948-5263 Cell (306) 441-4402 Toll Free 1-800-746-6646 Email: jwappel@envirotank.com www.envirotank.com

1â&#x20AC;˘855â&#x20AC;˘236â&#x20AC;˘6400

Lance Wotherspoon Regional Sales Manager

[T] 403 236 2244 [F] 403 236 8829 [C] 403 813 6319

[Toll Free] 877 236 2244

A S E E L SERVICE S â&#x20AC;&#x2122; D G I B 93 Panteluk Street, Kensington Avenue N Estevan, Saskatchewan PHONE: 306-634-8828 â&#x20AC;˘ FAX: 306-634-7747

ASSURANCE COMPANY

NOW LOCATED ON 5TH ST. ESTEVAN, SK.

Call: Clinton Gibbons

District Manager Downhole

Great-West Life

AEM LTD.

461-8471 â&#x20AC;˘ 461-8472 â&#x20AC;˘ 461-8473

Cordell Janssen

Life Licence sponsored by The

(Behind Power Dodge)

Aspen Custom Trailers 6017-84th Street S.E. Calgary, AB T2C 4S1

Estevan, SK

Tel: (306) 359-2015 â&#x20AC;˘ Fax: (306) 359-3034 E-mail: dwight@dgbcanada.ca Toll Free: 1-855-359-2015 â&#x20AC;˘ Cellular: (306) 421-1935

516 Nesbitt Drive, Estevan â&#x20AC;˘ 634-2631

lancew@aspentrailer.com www.aspentrailer.com

Box 208

â&#x20AC;˘ Life Insurance â&#x20AC;˘ Disability Insurance â&#x20AC;˘ Critical Illness Insurance â&#x20AC;˘ Employee BeneĂ&#x20AC;t Plans

Backhoe Towing Mowing Fencing Snow Removal Road Grader Gravel Supplies & Hauling

P.O. Box 544 Stoughton, Sask. S0G 4T0

(306) 457-7033 (306) 457-7673

a l t u s g e o m a t i c s . c o m

Specializing in well site and pipeline surveys Yorkton 306.783.4100

Swift Current 306.773.7733

Edmonton 800.465.6233

Weyburn 306.842.6060

Lloydminster 780.875.6130

Calgary 866.234.7599

Regina 800.667.3546

Medicine Hat 403.528.4215

Grande Prairie 780.532.6793

PIPELINE NEWS February 2012

C31

C32

PIPELINE NEWS February 2012

WA N T E Dnd Programmers.

a s r o t a r e p O C N C , s t Machinis

Metaltek Machining is the trusted Design, Engineering and Manufacturing Facility located on the border of Saskatchewan and Alberta in Lloydminster. Serving the oil and gas/mining/aerospace industries locally and internationally since 1997. At our full production state of the art facility we offer high quality Conventional & CNC Machines, Advanced CAD/CAM Software and Drafting.

METALTEK MACHINING OFFERS:

EMPLOYEE BENEFIT PACKAGE CONTINUOUS TRAINING FANTASTIC EXPERIENCED TEAM COMPETITIVE WAGES

THE SUCCESSFUL APPLICANTS SHOULD POSES: MACHINIST TICKET OR APPRENTICESHIP STATUS MANUAL and/or CNC EXPERIENCE CONSIDERED AN ASSET ABILITY TO PERFORM UNDER TIGHT DEADLINES

Resumes may be sent to: Fax (780)872-5239 mailto:kent@metaltekmachining.com · Wellhead Equipment Design,Manufacturing and Repair · Thread and Re-thread Casing, Tubing and Line Pipe · Drill Pipe and Collar Storage and Inspection · General and Custom Welding and Manufacturing · C.A.D Library of Parts · Complete Assemblies Drill Collar & Drill Pipe Recuts

ROD BREAKER

· Product Development · Rotary Connection Manufacture and Repair · Down Hole Production and Fishing Equipment Construction · Phosphate Coating Available For Finished Parts · MIG, TIG and B Pressure and Aluminum · Service and Drilling Rig Stocked Parts · Custom and Production Machining · Rapid Prototyping

FAVA FLOW SURE VALVE

C-VICES

TUBING DRAINS

Thread & Rethread of Casing

BOP TOP PLATES

BAILER BITS

WELLHEAD FLANGES

ABSA Registered Conforming to ISO and API Standards • 24hr Service

780 - 875 - 6535 www.metaltekmachining.com

REAMER SUBS