Pipeline News - June 2012

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PIPELINE NEWS Saskatchewan’s Petroleum Monthly

June 2012

Canada Post Publication No. 40069240

FREE

Volume 5 Issue 1

Trucks

Hauling everything to everyone

Photo by Brian Zinchuk

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PIPELINE NEWS June 2012

INSIDE A SECTION 5

Bert Baxter Consolidates LocaƟons

11 Stewart Steel Builds On Its Strengths

6

Editorial

14 Triple J Pipelines Comes To Estevan

7

Opinion

18 Caterpillar Launches VocaƟonal Truck

B SECTION 1

Three Star Trucking Celebrates 50 Years 13 DSI ContracƟng Builds For The Patch

4

Three Star Origins

17 Pilot Car Lobby

10 Bakken Pioneer Speaks At Redvers Oil Showcase

26 Save Your Melon

C SECTION 1 6

Longest Serving Western Star Dealer In North America Paradise Hill ProĮle

9

Novlan Bros. BeneĮts From Busy Patch

15 Redhead On A Roll 26 Heavy Oil Symposium In September

PIPELINE NEWS Saskatchewan’s Petroleum Monthly

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

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PIPELINE NEWS June 2012

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TOP NEWS Redvers Oil Showcase a resounding success

Dan Kurtz, right, catches a football thrown by his boss, Trevor WinacoƩ of WinacoƩ Western Star and Sterling Trucks.

By Brian Zinchuk Redvers – The fourth Redvers Oil Showcase held May 10-11, was a great success, according to organizers. Currently on maternity leave, Crescent Point Energy petroleum engineer Leta Brisebois spent a lot of her “time off ” working on the organizing committee, along with a number of local business people. “We had an awesome turnout,” she said. “We’re thinking it was in the 1,500 range.” Nearly 600 people showed up for the banquet, which had Painted Pony Petroleum CEO Patrick Ward as its keynote speaker. Both the indoor and outdoor booths sold out, and the outdoor booths were greatly expanded compared to two years ago. The last time there were 27. This time there were 52. Displays ranged from trucks to coil tubing and frac units. Wet grounds looked like they were going to be a problem. “It’s going to dry up,” Brisebois said organizers kept telling themselves. But four days before the event, they realized help was needed. “We made the call. We need mats,” she said. Three companies stepped in to ensure the grounds would be OK. Dangstorp’s Service provided dirt-moving equipment to clean up the grounds. Swayze's Concrete trucked in hundreds of cubic yards of gravel. Easy Rider Trucking brought in approximately 1,400 mats. The result was a firm, dry surface for both exhibitors and guests. The bill between the three companies was zero. “Those three companies bailed us out,” said showcase chair Brian LeNouial. “It’s safe to say it was a great success. The size of the show really impressed.” LeNouial owns and operates Poplar Services Ltd. in Redvers. A lot of vendors told organizers they felt there was a more laid-back attitude compared to other shows. That allowed them to visit more and make good contacts. “That’s a common thing I heard from a number of exhibitors,” LeNouial said, adding Ward was taken aback with the size of the show and supper. The last time the showcase was held, it took place over a Friday and Saturday. Attendance on the second day suffered. As a result, they moved the show this year to a Thursday and Friday format, something LeNouial said helped a great deal. He noted people are willing to take an afternoon off from work to attend a show, but not an afternoon out of their weekend. “It is work-related,” he said. The dates for the next show are already set – May 8 and 9, 2014. “We’re discussing how to make it even bigger in 2014,” he said. MagnaŇow N2 Services had a trailer on hand that can generate nitrogen from the ɸ Page A8 atmosphere. The company is new to Redvers.

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PIPELINE NEWS June 2012

BRIEFS Harvest operations update

Harvest Operations Corp.’s upstream capital spending in the first quarter was $238.6 million (it has a $650-million upstream capital budget for 2012, including BlackGold in the oilsands), essentially unchanged from $237.6 million in the corresponding 2011 period, resulting in the drilling of 69 (60.4 net) wells. Sixty per cent of the budget was spent on drilling and completions. During the first quarter, Harvest drilled 45 per cent of the wells it plans for 2012. Capital spending was concentrated on development opportunities in oil-weighted assets, specifically in the Hay River and Red Earth areas. In its Hay River area, 27 gross wells (producers and injectors) were drilled in the Bluesky formation in the pursuit of medium gravity oil. In the Red Earth area the company drilled 10 gross stage-stimulated horizontal oil wells in the Slave Point formation. Harvest also continued to focus on its southeast Saskatchewan 100 per cent working interest wells in the Souris Valley and Tilston formations. The remainder of Harvest’s asset development was focused on existing oil pools along with liquids-rich gas wells.

Briefs courtesy Nickle’s Daily Oil Bulletin

Husky’s 8,000 barrel a day Pikes Peak South thermal project is due to begin producƟon later this year. Pictured are thermal pumpjacks at the site 40 kilometres east of Lloydminster. Photo submiƩed

Husky begins to collect CO2 for EOR By Geoff Lee Calgary – Husky Energy’s strategy to produce a greater percentage of heavy oil from thermal projects and horizontal wells continues to gain steam, literally, in 2012. The 8,000 barrels per day Pikes Peak South thermal project and the 3,000 bpd Paradise Hill thermal project in the Lloydminster, Saskatchewan area are on target to begin production in the third quarter of 2012. Heavy production volumes from heavy oil contributed to Husky’s first quarter production of 320,000 barrels of oil equivalent a day, comparable to the 319,000 boepd in the fourth quarter of 2011. “Production was up three per cent in the quarter compared to the year-ago period, which is about 10,000 barrels a day,” said Husky CEO Asim Gosh during a first quarter conference call on April 26. “The increase was primarily due to higher production volumes in heavy oil, at the Tucker Oil Sands project, and in Western Canada where an acquisition was completed in early 2011.”

Husky is proceeding with the design of a new 8,000 bpd commercial thermal heavy oil project at Rush Lake near Paynton, Saskatchewan, based on positive results from a single well pair pilot. The commercial project is expected to come on stream as early as 2015. Preliminary planning is also underway for three additional commercial thermal projects. The Lloydminster Upgrader had a strong operational performance in the quarter with throughput averaging 324,000 bpd. The heavy oil upgrader completed a minor three week maintenance turnaround in early May in time for the start of a short maintenance outage at the ethanol plant that is integrated with the upgrader. Husky has been active in enhanced oil recovery research in northwest Saskatchewan for several years. In what appears to be an outcome of that research, a new facility will capture CO2 emissions from the company’s Lloydminister ethanol plant. That CO2 will be used to increase heavy oil production. ɸ Page A9

PIPELINE NEWS June 2012

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BRIEFS

Bert Baxter making a big move

ARC drills good wells at Goodlands Todd Shirley owns and operates Bert Baxter Transport Ltd. with his brothers Darryl and Vaugh.

Story and photos by Brian Zinchuk Estevan – There’s a big shakeup coming for commercial real estate in Estevan, and it’s all being triggered by a big move by Bert Baxter Transport Ltd. Baxter, one of the few large remaining oilfield trucking outfits in southeast Saskatchewan still in private hands, is setting up shop a mile northeast of the city of Estevan. The location is adjacent to the proposed new truck route that is intended to eventually be built around the city. When that happens is yet to be seen, as it was initially announced in 2008, the same year Yorkton’s bypass was announced. That project has already completed two phases, while Estevan’s has yet to scratch dirt. They have a quarter section of land to build on, according to Todd Shirley, who runs the Estevan location. His co-owner brothers Darryl and Vaughn look after maintenance and the Edmonton locations respectively. Their parents, Graham and Nancy Shirley, bought out the original owners decades ago. The company itself was started in the 1920s. It specializes in general oilfield hauling and long-haul freight. All their work is deck work, be it flat decks, lo-boys, trombones and the like. The fleet includes a large number of pickers. The company has about 100 people working out its Estevan location, another 30 or so in Edmonton, and approximately 25 in Fort Nelson, B. C. In Estevan, those workers are scattered all over their numerous yards. The main office and yard is at the intersection of Kensington Avenue and Encana Street, and has been there “as long as I can remember,” Todd said. It’s a prime piece of real estate, but one that can be very difficult to get in and out of, especially when there’s train on the tracks that run along the north side of the property. Indeed, even on a wet day in early May when almost the

entire drilling fleet was racked and a large chunk of their staff had the day off, parking was still at a premium at the main site. The situation isn’t much different elsewhere. Several of their sites eventually make use of Kensington, be it the maintenance shops on Mississippian Drive or the pipe yards on 5th Avenue. Turning left onto this busy thoroughfare can be difficult at the best of times with a pickup truck, let alone a semi. “This train is driving me up the wall,” Todd said, explaining it is very difficult to get out of their main yard, and “it’s getting worse every day.” The plan is to consolidate all eight yards scattered in and around Estevan to one location. That includes all the shops and pipe yard. Dirt work began last summer, having been delayed substantially due to the incredibly wet spring. “It was delayed for half a year last year,” Todd said. The location could prove to be ideal. “It’s supposed to be on the new truck route. We had the land before we even knew where the truck route would be,” he said. The yard will see five or six buildings when complete. The first should be complete by the time of publication of this story. The second, the foundation for which was in place, is the twolane, four-bay truck wash. The move will take time. “I want to get a pile of pipe there this year,” Todd said. The next phase is a multiple-building campus, all linked. The west-facing centre building will be the office, with shop wings planned to the north, south and east. “I don’t know if the office will be this year,” Todd said. “I’d like to have three shops up by the end of the year. It depends on the weather and timing.” ɸ Page A10

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During the first quarter of 2012, ARC Resources Ltd. drilled 59 (54 net) wells on operated lands with a 100 per cent success rate. First quarter drilling activity was focused on oil and liquids development with 98 per cent of wells drilled being oil and liquids-rich gas wells. Activities focused on Tower in northeast British Columbia, Pembina and Ante Creek in northern Alberta, and various oil properties throughout southeast Saskatchewan and Manitoba. First quarter production in southeast Saskatchewan and Manitoba averaged approximately 11,249 boepd of light crude oil, up seven per cent from 10,386 boepd in the first quarter of 2011. The Goodlands property in Manitoba provides some of the best drilling economics in ARC's portfolio due to the high netback, light crude oil. First quarter Goodlands production averaged 2,200 boepd of light crude oil, up 57 per cent from 1,400 boepd in the first quarter of 2011. ARC drilled 10 Goodlands oil wells during the first quarter of 2012 after expanding an oil facility in the area in the fourth quarter of 2011, adding 2,300 bpd of fluid capacity in response to active drilling programs in 2011 and those planned for 2012.

Briefs courtesy Nickle’s Daily Oil Bulletin

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PIPELINE NEWS June 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 CENTRAL Al Guthro 1.306.715.5078 al@prairieng.com 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. Pipeline News has a group of experienced staff working throughout Saskatchewan and parts of Manitoba, so please contact the sales representative for your area to assist you with your advertising needs. 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. Pipeline News will not be responsible for manuscripts, photographs, negatives and other material that may be submitted for possible publication. All of Pipeline News content is protected by Canadian Copyright laws. Reviews and similar mention of material in this newspaper is granted on the provision that Pipeline News receives credit. Otherwise, any reproduction without permission of the publisher is prohibited. Advertisers purchase space and circulation only. Rights to the advertisement produced by Pipeline News, including artwork, typography, and photos, etc., remain property of this newspaper. Advertisements or parts thereof may be not reproduced or assigned without the consent of the publisher. The Glacier group of companies collects personal information from our customers in the normal course of business transactions. We use that information to provide you with our products and services you request. On occasion we may contact you for purposes of research, surveys and other such matters. To provide you with better service we may share your information with our sister companies and also outside, selected third parties who perform work for us as suppliers, agents, service providers and information gatherers.

Redvers Oil Showcase outdoes itself There’s something to be said about a community that goes all out to put on a good show, and Redvers is definitely that community. On May 10 and 11, the fourth Redvers Oil Showcase was held. For a small town, it was a showcase indeed. The terms “bigger and better than ever” are often over-used in marketing, but in this case, it was true. The outdoor booths doubled in number, to the point where it’s pretty substantial – much bigger than what has been seen at the Williston Basin Petroleum Conference in Regina or Bismarck, North Dakota. The inside booths were also sold out, and notably, had a much more oil-related flavour than two years ago. The Redvers Showcase is timed to be held on the off years of the Saskatchewan Oil and Gas Show in Weyburn. That’s the big kahuna show for this province. Redvers doesn’t try to replicate that extravaganza, and they don’t need to. The Redvers event is all about local, local, local. Nearly all the exhibitors there operate in that immediate area. We saw everything from hotel operators to new fabricators and hotshots. The people you met in the booth would be the people you deal with on a regular basis, not sales people flown in from Calgary. These people didn’t rush out the door to catch a plane back home. They loaded their displays into

their trucks and drove a few minutes, maybe an hour or so, to be home. Soggy conditions this past spring kept the drilling fleet, and the businesses associated with it, at an absolute standstill until the weekend following the Showcase. That probably helped attendance, but it also meant the grounds could have been a soup hole. Committee organizers rightly recognized three companies that stepped forward to make sure a soup hole didn’t happen. Dangstorp’s Services had its equipment there, cleaning up the grounds, while Swazye's Concrete brought in hundreds of cubic yards of gravel. Then Easy Rider Trucking installed somewhere around 1,400 mats, keeping the displays clean and the visitors, too, all the while ensuring the park area didn’t end up rutted. All three companies didn’t charge a dime, we’re told. The supper had Painted Pony Petroleum CEO Patrick Ward as speaker. Ward was one of the pioneers of the Saskatchewan Bakken play. Nearly 600 people heard him speak, in a town whose 2011 census population is 975. Organizers have told us they’re already looking at ways to make the next show in May 2014 even bigger. If the success of this year’s show is any indication, don’t wait to buy your booth. Exhibitor space will sell out quickly.

PIPELINE NEWS June 2012

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OPINION From the Top of The Pile By Brian Zinchuk

Shipping crude returns to its roots Ever wonder why the oil industry talks about barrels of oil? Apparently it originates from the early Pennsylvania oilfields, where a standard measure was needed for sales and transportation. These were quite literally wooden barrels, and they were loaded by hand into rail cars and shipped by train. Now, 150 years later, what was old is new again. In the past two years I’ve been writing more and more about crude-by-rail. I anticipate that will dramatically increase in the future. The driver for this initially was the burgeoning oil production of North Dakota Bakken and Three Forks wells. When new wells come on with initial production as high as 1,000 to 2,000 barrels a day, it becomes pretty easy to absorb pipeline capacity. They simply couldn’t build pipelines fast enough, and still can’t. As a result, North Dakota now has crude-by-rail loading facilities popping up on a regular basis. Even Enbridge, one of the biggest pipeline outfits on the continent, is setting up one in Berthold, North Dakota. It was at the Williston Basin Petroleum Conference in Bismarck two years ago where the fundamentals were explained to me by a marketing man from Global Partners. They had partnered with Canadian Pacific Railway to ship crude. The focus was on getting Bakken crude to facilities are in Albany, N.Y., Providence, R.I., and Boston, Mass. The was talking about using facilities that had been handling ethanol, and seeking to use them for crude. Not many people are talking about ethanol anymore.

Treco of Global told me, “We see it as an alternative market, and as a relief valve as well, as long as pipelines remain constrained. “In the long term, once capacity is no longer an issue, there will still be times Texas Intermediate is below Brent,” he added, noting they would provide a market alternative. “The beauty of rail is you can do it when it makes sense, and shut it off when it doesn’t." Right now, that alternative is making an awful lot of sense. The delay of the Keystone XL pipeline, and the addition of North Dakota oil has caused a glut of oil at the trading hub of Cushing, Okla. It has led to substantial discounts to Brent-priced crude. If you can get your product to Brent markets, you make a lot more money. Saskatchewan has seen crude-by-rail facilities, minor ones to be sure, set up at Willmar, Estevan, Bienfait and Stoughton. I doubt these will be the last. Yet they pale in comparison to the unit-train loading facilities in North Dakota, where massive tankage is on site. There’s no loading from truck to train in these places. The one I saw at Stanley, N.D. two years ago had covered loading facilities that could load a large number of cars at once. A key political consideration is that rail, by and large, is not political. It’s been here, there and everywhere for over 100 years. Very little, if any, new track gets built. When it was built, I doubt many people had not-in-my-backyard complaints. So if you want to put a few unit trains each with 55,000 barrels on the track, no one is going to notice. But if you want to build a pipeline with similar capacity, expect to get protests. And if that pipeline is going to be 36 inches wide and carry

bitumen, you’re in for a knock-down, drag-out fight of your life. It’s a fight in which TransCanada has lost several rounds. They’re still in the ring, punch drunk, but clearly smarting from the beating they’ve taken. Now entering the ring is Enbridge, whose most recent big project – Alberta Clipper – had some protests by Saskatchewan First Nations. Teepees were set up on the right-of-way near Kerrobert. Those protests went away when some training programs appeared and some jobs were offered. Now they are facing heavyweight protests with Northern Gateway. If the current environment is any indication, the company is going to take two black eyes and some broken ribs. Yet no one protested on CN’s or CP’s tracks when they quietly started shipping substantial amounts of oil. I don’t remember any hearings, either. They just went and did it. Between the time this edition goes to press and it comes out on newsstands, I will have spent three days soaking in the 2012 edition of the Williston Basin Petroleum Conference, again in Bismarck. I expect to see an awful lot more with respect to crude-by-rail than I did two years ago. Crude was first shipped by rail, and it is becoming apparent new production may have to do the same. Brian Zinchuk is editor of Pipeline News. He can be reached at brian.zinchuk@sasktel.net.

Lee Side of Lloyd By Geoff Lee

Red tape review cuts lauded by many The federal government’s sweeping legislative plan to limit the federal role in environmental assessments to projects it considers to be of national importance is good news for provinces and energy companies with smaller scale projects ready to go. The “one project, one review” system for reviews of major projects recognizes provincial processes as equivalents or substitutes for federal ones providing they meet the requirements of the Canadian Environmental Assessment Act. The plan should help put an end to the current duplication and allow provinces to set their own level of oversight while improving the economics of capital intensive projects. The Canadian Association of Petroleum Producers says regulatory reform is important for Canada in terms of competitiveness. CAPP argues that regulatory bottlenecks in the current system have often led to project delays or outright cancellations due to missed market opportunities. The plan to improve Canada’s regulatory process for natural resource projects will generate more jobs

and a stronger Canadian economy. The plan will also provide the same regulatory scrutiny that Canadians expect. Energy provinces such as Alberta and Saskatchewan have well established records of regulatory work pertaining to large scale energy and mining projects. Environmental groups, however, think the redefined role of the federal government in environmental assessments of major economic projects opens the door to rubber stamping all projects. That’s not likely to happen as there has been a substantial harmonization in the environmental assessment process in recent years with those provinces that have a common set of standards. For the critics, the proposed legislation features numerous checks and balances including allowing federal inspectors to determine if the conditions of a decision have been met. Proposed penalties under the Canadian Environmental Assessment Act range from $100,000 to $400,000. The proposed plan also points out just how cumbersome the existing review system as it aims to reduce the number of organizations responsible for reviews from more than 40 to just three. Those three would be the Canadian Environmental Assessment Agency, the National Energy Board

and the Canadian Nuclear Safety Commission. The new review process would also put a time limit of 24 months for panel reviews, 18 months for National Energy Board hearings and 12 months for standard environmental assessments. There are also timelines for the permitting processes, all of which will save taxpayers millions of dollars, while minimizing environmental impacts. While Ottawa has yet to define what constitutes a major project of national importance, the threshold will likely apply to the proposed Northern Gateway pipeline to carry crude from Alberta to a port facility in Kitimat, B.C. There may be no better project to use as a test case for a streamlined federal review process, given the pent-up demand from producers to sell and ship their oil to Asian markets while oil prices are high. Proper regulatory and environmental reviews and controls are built into the proposed review plan without choking major projects to death with layers of red tape. The new plan will also generate more jobs at the province level where most of the environmental assessments will take place. The plan could be a win-win situation in the making. but it too will have to be assessed or re-assessed for its effectiveness once it goes into practice.

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 June 2012

Above: There were twice as many outdoor booths at the Redvers oil showcase this year, compared to two years ago. Photo by Leta Brisebois

ɺ Page A3

LeŌ: Brad Lamontagne, right, of Stoney Mountain Rentals, explains a double clutch wiper reamer downhole tool.

Above: Dwayne Bugg, leŌ, and Mike Winter of Site Energy Services served up some scrumpƟous shrimp. Right: Two year old Brycen Frecon checks out the sandbox at Courage OilĮeld Services Ltd.’s booth.

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Lloydminster has begun to collect and store CO2 emissions from the ethanol plant which is integrated with the Lloydminster Upgrader. The CO2 is being processed for use in enhanced oil recovery at heavy producƟon projects in the area. Photo submiƩed

C02 from ethanol plant to be used in EOR ɺ Page A4 The CO2 captured from the plant’s fermentation process is stored in containers, cooled and compressed into a liquid form. It is then transported to fields by truck, where it is injected into reservoirs to increase oil recovery. Husky began to capture and store carbon dioxide emissions from the ethanol plant from new facilities in March for enhanced oil recovery projects near Lloydminster. In other heavy oil news, Phase 1 of the Sunrise energy project in the Alberta oilsands is on target for its first production in 2014. Drilling has been completed on all of the planned 49 steam-assisted gravity drainage (SAGD) well pairs for the project’s first phase. Well evaluations have confirmed the quality of the resource. Construction activities and delivery of equipment ramped up in the first quarter, with the main

components of the central plant facility’s first five once-through steam generators now on site. Husky also drilled 26 wells in the first quarter in its extensive oil resource land base in Western Canada. Drilling was focused in the Oungre Bakken play in southeast Saskatchewan, the Lower Shaunavon in the southwest part of the province, and the Redwater Viking formation play in Alberta and Saskatchewan Viking. A horizontal well targeting the Muskwa shale at Rainbow in Northwest Alberta was also completed in the quarter with test results as expected. “The well is undergoing pressure build-up prior to being placed on production,” said Robert Pea-

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body, COO. “Drilling operations commenced on a two-well pad, which will carry on through spring breakup. “In the Northwest Territories, we drilled and cased two vertical pilot wells to evaluate the Canol shale formation on our two exploration licences. “A 220-square-kilometre 3D seismic program was also finished there.” Husky’s gas resource activities area focused on its liquids-rich assets at Ansell, Kaybob and Kakwa in Alberta with the main focus for 2012 on Ansell. “At Ansell, we drilled a total of nine wells in the quarter including three multi-zone vertical wells, three Cardium horizontals, two Wilrich horizontals and one vertical Cardium well,” said Peabody.

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PIPELINE NEWS June 2012

Lots of lots will open up Éş Page A5 Ideally, there will be enough shop space to bring all the trucks in at night. One shop will be dedicated for maintenance and repair. “We have a large enough space, we can expand if we need to,â€? he said. The company is using 80 acres, and is in the ďŹ nal process of subdividing the remaining land into ďŹ ve acre parcels. Approximately 60 acres will be put on the market. “It’s a big undertaking,â€? he said of the three year project. “It’s been a long, drawn-out process.â€? Domino eect As Bert Baxter vacates its existing facilities, it will open up numerous properties throughout Estevan and the R.M. of Estevan. In a booming community where several companies are looking at expansion, having so much property come on the market can be a real boon. “I’m either going to sell them or put buildings on them and rent them out,â€? Todd said. “Once I’m o, it’s for sale. We haven’t kept it quiet.â€? He joked about putting a hotel on the site of main yard, noting it’s the ďŹ rst thing you see as you come into the city, over the rail overpass. “It would ďŹ t a hotel really nice. It’s just a thought running through my head,â€? he said. In the meantime, the Todd is expecting a busy year. “We’re always looking for drivers, mechanics and welders,â€? he said. Like many other businesses, they’ve found themselves in the accommodations market, just to ensure sta have somewhere to lay their heads at nights. “I bought ďŹ ve houses or trailers. They’re all full now. The only way you can get people to come here is to provide housing,â€? he said. If they can swing it, a private RV park might be included on the new site, just for sta. If that bears out, it will be the second Estevan-based company in recent months to look at that option.

Jim Crawford, site superintendent with Wilhelm ConstrucĆ&#x;on Services Inc., points to the piling foundaĆ&#x;ons in place for the next building to go up – the wash bay.

The ÄŽrst of several buildings nears compleĆ&#x;on at the new Bert Baxter Transport yard northeast of Estevan.

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PIPELINE NEWS June 2012

A11

Manufacturer Stewart Steel building on its strengths

Brad Stewart, owner of Stewart Steel, stands by a skid for the water tank and doghouse for Panther Drilling’s Rig 4.

By Brian Zinchuk Weyburn – There’s a lot of welding, cutting, welding and painting going on a mile or so northeast of Weyburn thanks to Stewart Steel. The family-owned and operated business has grown from machine shop origins to being a substantial supplier for oilfield service industry. They have a list of their products posted at the door. The client list is even longer. Those products include service trucks, pump trailers, boiler buildings, pump buildings, mud tanks, truck bodies, doghouses, tanks, towers, and custom cabinets. If that isn’t enough, Stewart Steel will take you from concept to built, designing and building custom projects. Home for Stewart Steel is North Weyburn, location of the Weyburn airport. The airport appears to be one of the more complete remaining examples of a British Commonwealth Air Training Plan base. A series of over 100 flight training schools were built across Canada during the Second World

War, including one near Weyburn. The school that trained over 1,000 pilots is now home to Stewart Steel. Stewart Steel’s main shop is in a Quonset built on the concrete pad of a former hangar. They have recently expanded to a 70-year-old hangar which has had most of its exterior siding redone, along with replacement of the windows. A second hangar is currently being rented out for storage purposes, but there are intentions of eventual expansion. Each of the hangars are 36,000 square-feet. The main shop was an existing metal fabrication plant. “We export agricultural product to Australia and Europe,” owner Brad Stewart said. “We make an unloading auger extension and some internal threshing parts. We also distribute a grain tank extension.” “We do some grain storage and manufacture the ‘Hefty Hopper,’” he said. Agricultural products is what got them started. But as time as gone on, supplying the oilpatch has

become over half of their business. Stewart is a machinist and welder by trade. “I started (with) M&R Machines when I was in my early 20s,” Stewart said. M&R stood for manufacturing and repair. “It was basically a machine shop and gave us a good base to start manufacturing.” ɸ Page A12

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PIPELINE NEWS June 2012

‘Lean’ manufacturing makes all the difference ɺ Page A11 Brad Stewart married Deanna Crosson in 1982. “We bought M&R Machines in 1984 when I was 23 years old, before I completed my journeyman. Getting back to complete my journeyman machine shop was a struggle,” he said. They purchased it from Sam Murray, which Stewart describes as “someone who helped me a lot. He was a good mentor.” The work centred around agriculture, mining, oil, and even work

for Regina’s Ipsco. “We had to work a lot harder to get a job than we have to today, I tell ya,” Stewart emphasized. They started manufacturing agricultural product, which necessitated a move. “We needed a larger facility, mostly to facilitate our painting,” he said. “We moved to North Weyburn in ’94 and set up more of a manufacturing plant.” Now, he noted, “We are a steel fabrication manufacturing company.” “We sold M&R Machines to Ken Miller,

Welder Tania Howse has been working on a pulverizer for the Boundary Dam Power StaƟon. “Tania does some of the most high quality work, and obtained all her cerƟĮcaƟon in-house,” Stewart Steel owner Brad Stewart said.

who still owns and operates the machine shop, which he has expanded,” Stewart said. In the mid-’90s they changed their focus from a machine shop and repair to steel fabrication and painting. That allowed them to ship products around the world. It was a slow evolution from primarily agricultural products to more oilfield and industrial products. Oilpatch-service related work. The new facility allowed Stewart Steel

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to get pro-active, with good quality painting and manufacturing, as well as repeatable processes. Lean manufacturing Stewart’s eyes light up when he starts talking about lean processes for manufacturing. It’s a mindset which focuses on eliminating waste. Stewart noted lean manufacturing is “bet-

ter for ourselves, better for our customers, and may be a little change for our suppliers. “We’ve definitely reduced several forms of waste. We had to learn there were a lot more forms of waste than waste material and wasted labour.” This has meant things like balancing the production line with material flow.

“It has helped us as a company not just to look at what a customer wants, but in some cases, beyond that to what makes them more efficient. There’s many ways to accomplish that.” And example he gave was the use of bolt-in wear parts instead of weld-in wear parts. ɸ Page A13

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PIPELINE NEWS June 2012

A13

Paula Collins, a third-year apprenƟce welder, works on a grain hopper

ɺ Page A13 “Some of the little things we did was instead of doing a batch of 100 units, we built 16 at a time to match manufacturing, painting and packaging. (We) carry that right through to what the freight company can pick up on a daily basis, instead of a full truckload. Therefore our distributor will have stock to supply the first customer sooner. “That’s what sets us apart as a manufacturer – being a lean-thinking team and quality driven is our competitive advantage on the world stage,” Stewart said. As for their design team, Stewart said, “We’ve got project managers and engineering techs and draftsmen that takes the project from the customer to the design.” That includes going from a full set of drawings (that may or may not require an engineer’s stamp) to the plasma/ water jet cutter, then to the breaks, shears, rolls, jigs, fixturing, prep for painting, and coating in one of their five paint booths. Packaging and shipping follows. Freight can go by truck, plane, or boat. Some goes on their own trucks. Rig build One of their current projects is doing the building work for Weyburn-based Panther Drilling’s Rig 4, currently under construction.

“We’re working on the water tanks, dog house building and combination building. The two pump buildings are going to the paint shop,” Stewart said on May 9. “We’ve got a shop that’s set up to fit and finish structural steel,” Stewart said. An example has been a steady stream of 400-bbl. tanks. Containment A more recent development has been one-piece welded secondary containment units for JK Containments, profiled in the November 2011 edition of Pipeline News. “This was an idea that was Saskatchewanborn. Jayson King came to us and brought us an idea. He had to get government approvals for certification. It’s an idea that has helped enhance the oilpatch.” That’s a line of thinking that meshes with Stewart’s philosophy. He said “We are not out there to build a part that’s cheaper, but rather one that’s better, to make the customer more successful.” “I want to build a part that’s an enhanced idea or a process that makes it more profitable to the customer – out of the box thinking. Stewart Steel is a family-owned and operated business. Four of their five children are involved. The youngest is still in high school, but Stewart noted,

“She’s been in the shop a bit.” “Deanna has been fully involved since day one in administration and management. My passion is the shop,” he said. As for future growth, Stewart said, “We hope to see continual, steady growth, not spikes in

any area. We are actively recruiting employees for blasting, paint application, fabricating and design from everywhere, including overseas.” There’s one thing noticeably different at Stewart Steel compared to similar operations in southeast Saskatchewan:

the substantial number of young women working there, in coveralls, grinding steel and welding hoppers, cabinets and tanks. Stewart talks of an encouraging workplace, and has high praise for his workers as he took Pipeline News on a tour

of the plant. “We push our people to be productive, but we want a comfortable, safe environment and a sense of accomplishment,” Stewart concluded. “What makes a difference? Making a difference to your people.”

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A14

PIPELINE NEWS June 2012

New pipeline contractor comes to Estevan Estevan – With a busy summer expected in the oilpatch, Triple J Pipelines Ltd. has set up its new operation in southeast Saskatchewan just in time. The company set up operations in Estevan in the former F&L Concrete Services shop on the west side of the Energy City. The company is based in Fort St. John, B.C., with a second base in Leduc, Alta. Project manager Dwight Cunday said in early May that they have 10 people working so far, and that number will grow. “I’ll have 30 here in the next month.�

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Cunday is a Saskatchewan product, who, like many have over the years, went to ďŹ nd his fortune in Alberta, only to now come back. He and a number of his associates, all hailing from the Wapella and Rocanville area, will form the nucleus of the southeast Saskatchewan operation. “I’ve got a few from other locations, but most of the guys I have working for me are from Saskatchewan,â€? Cunday said. “I’m from Wapella, too.â€? “There was no pipeline here, so for pretty much my whole life, I was gone. There’s a core group of guys, about 15, that have been together for about 20 years.â€? Cunday’s spent three years with Triple J. “I’ve done a little bit of everything. I used to run a lot of sideboom when I was younger.â€? Some of that experience was for a southeast Saskatchewan outďŹ t, but much of the work was in Alberta and British Columbia, with about eight years spent in each of those provinces. “It’s all about keeping Saskatchewan guys working. There’s no sense in taking Saskatchewan guys to B.C. when there’s lots of work here,â€? he said. “Most of my crew still lives here. “A lot of our work is from here to the Manitoba border, and to Wapella.â€? Much of that work is for one of the substantial players in the region. With natural gas prices at the lowest level in 10 years, companies that used to do a lot of work in the gas regions of Alberta and British Columbia are now shifting to more oil-prone regions. “The gas ain’t worth nothing. They’ll cap it o, and when they need it, they’ll use it,â€? he said. While they did bring some iron over to Saskatchewan, a lot of it has been recently acquired. Triple J’s work is not limited to pipelines. The company does general oilďŹ eld maintenance work as well. “The ďŹ tter I have can do skid packages, too,â€? he said. “We’ve got some pumpjacks to move. We can build plants,â€? Cunday said. Along with the shift from gas to oil comes a shift in building style. Fibreglass pipe is predominant in southeast Saskatchewan, whereas steel is more common for points west. To that end, they have a ďŹ breglass specialist coming on-board. A common refrain has been a shortage of available housing, even for Cunday, in Estevan. “Once we get ďŹ red up, I’ll need more guys, particularly labourers,â€? he said. “We’re here for the long haul. We’re not here to come in and be gone tomorrow. There should be enough work for everybody,â€? Cunday said. Right now the focus is southeast Saskatchewan, but if some work comes up across the border in Manitoba, they will look at that, too.

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PIPELINE NEWS June 2012

New industrial cleaning method taking off and paying off in oil fields

F

ive years ago the term dry ice blasting was virtually unheard of in the oil and gas industry. Today, however, the process is rapidly becoming the preferred method of cleaning among the industrial, commercial, utility, and environmental sectors. Regina-based Medius Industrial is now bringing the technology to Saskatchewan oil fields. So, how does it work? And why is it so quickly replacing previous cleaning techniques?

Dry Ice Blasting at a glance Tiny CO2 (ice) pellets are blasted at supersonic speeds through a jet of compressed air at -78 degrees C or -109.3 degrees F. Upon contact with the ice, contaminants shrink and lose adhesion from subsurfaces. The dry ice is then converted back into carbon dioxide gas and evaporates into thin air. The process effectively and efficiently removes contaminants such as bitumen, corrosion, chemicals, acids, and heavy oils without causing any damage to the underlying surface or creating any secondary waste.

efficient cleaning and restoration methods. The oil and gas sector, in particular, has seen a spike in the use of this new technology. Because the process allows for equipment to be cleaned hot whilst online, there is no need for disassembly or shutdown. This equates to less downtime and greater profitability. Dry ice blasting is also non-toxic, non-abrasive, non-conductive and environmentally responsible.

BEFORE

Greater profits The benefits of CO2 blasting are many, leading more and more industries to move away from traditional less

AFTER Photos courtesy of Cold Jet

More versatility Chris Krasowski, General Manager for Medius Industrial says, the possibilities with their dry ice blasting service are virtually limitless, “One of the greatest advantages to our dry ice blasting process is its extreme versatility. Clients can use it to clean piping, wellheads, valves, vessel interiors and, well... pretty much anything they need cleaned.” Those in the oil and gas sector find the system particularly attractive as it reduces the chance of foreign materials such as sand or debris from entering and damaging process equipment. With oil drilling set to increase by 6% in Saskatchewan during 2012, dry ice blasting will undoubtedly be an option more will be considering.

“Unlike hydro-blasting, we can use CO2 blasting 12 months of the year, as cold weather does not hinder its effectiveness.” - Chris Krasowski, General Manager, Medius Industrial

For more information about Dry Ice Blasting, contact Medius Industrial toll-free at 1.800.675.5771, in Regina at 306.565.3395, or in Yorkton at 306.620.6632. Visit them online at mediusindustrial.ca.

industrial HE AV Y DUT Y RESTOR ATION

A15

A16

PIPELINE NEWS June 2012

Strong demand for power packages

Derek Schenher backs a CWC Well Servicing rig out of the Southern Industrial shop.

„ By Brian Ziinchuk Weyburn – There’s a strong demand for power packages this year, according to John Rouse, who heads up family owned and operated, Southern Industrial and Truck, Rouse Industries and JR Wellsite Power. Southern Industrial and Truck is a heavy duty truck dealer and repair operation, while Rouse Industries specializes in engine and clutch packages for drilling rigs. Their premiere, in-house product is the Rouse 2 speed mud pump transmission, a common ďŹ xture on drilling rig mud pumps. JR Wellsite Power is an oilďŹ eld equipment rental outďŹ t. Rouse Industries has power 38 units it needs to deliver by the end of August, and another 19 generators. All are intended for drilling rigs, although not all are complete rig packages. “We’re really busy with all the commissioning,â€? John said. “These rigs are being put together in North Dakota, Saskatchewan, and mostly, in Alberta. His wife, Dennice, and sons, Dustin and Codie are all part of the management team. “We’re pretty much at max capacity right now,â€? Dustin said. Cat engines The company is has a new product oering that has taken o – Caterpillar engines and industrial transmissions for oilďŹ eld applications. It’s particularly seen usage on drawworks. “We’re doing a lot of business with Cat now that we weren’t before,â€? Dustin said. John added, “It gives Southern Industrial a more complete transmission oering – Rouse, Allison and now Cat as well.â€? Dealing with factory A year ago they started oering a 30-litre Cummins engine paired with a Rouse MPD 2.1 transmission. It’s drawn a lot of attention. “That combination has got a lot of steam in northern Alberta,â€? John said. Ironhand Drilling was the ďŹ rst to take it on, followed by Yorkton-based Crusader Drilling. The size and horsepower makes it a little too big for Saskatchewan applications, John said, noting it’s for a 1350 horsepower mud pump setup. He was recently up in Grande Prairie to commission Crusaders’ Rig 3. Dustin explained, “Two years ago at the Global Petroleum Show, John sat down with the factory engineer to explain the mud pump application so they would release this horsepower calibration. Previously, it was not available.â€? ɸ Page A17

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PIPELINE NEWS June 2012

John Rouse moves a new Caterpillar engine and transmission by overhead crane. Rouse Industries has recently added Cat engines and transmissions to its drilling rig power unit oīerings. Behind him are a row of 30-L Cummins engines and Rouse transmissions.

Larger engine package proves popular ɺ Page A16 John noted that engine size was predominantly used in frac pumping, and not drilling. “Southern has our own factory calibration to match the engine to our transmission purpose-built for mud pumping operation. The beauty of modern electronics is there’s so much capability. There’s no more cowboys who put it on and see it work.” As for new Rouse product offerings, Dustin said, “We’ve got stuff in development, but nothing out there right now. We’ve got prototypes.” Small customers are willing to try out

new products, he noted, pointing to some local small drilling outfits as examples. “We like to work with the small independents,” he said. On the truck side, they had a busy spring breakup, when the service bays were dominated by oilfield equipment, including numerous service rigs. “We had a really busy spring breakup,” Dustin said. More help “We brought in some Ukrainian immigrants to help keep up with capacity in our service,” John said. They have five Ukrainian technicians right now, with the additional people from

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A18

PIPELINE NEWS June 2012

Caterpillar launches vocational truck line The ÄŽrst of nine CatÂŽ CT660 vocaĆ&#x;onal trucks ordered by Kramer Ltd. arrived at the Regina branch on April 24. Out to inspect the Class 8 truck was Kramer Chairman of the Board Donald (Don) E. Kramer (standing on truck step) and Kramer Retail Highway Truck Sales Manager Ian Capnerhurst. Photo submiĆŠed

Regina – A few years ago, Caterpillar exited the on-highway truck engine business. Now it’s back, but in a dierent manner. This time their engines come with a truck wrapped around it. This spring Caterpillar launched its new CT660 vocational truck. It’s the heavy equipment giant’s foray into the on-highway truck business. Ian Capnerhurst is the retail on-highway truck sales manager for Kramer Ltd., Saskatchewan’s Caterpillar dealer. He explained the new model’s oering. There’s one model, but two versions, Capnerhurst said. The CT660L has a long nose, while the CT660S is shorter. Both have set-back axles. A set-forward axle model is in the works. The new trucks are being built through an arrangement with International at their Garland, Texas plant. However, they are branded as Caterpillars. And unlike most Cat equipment which is painted yellow, these are available in all sorts of colours. The design includes a reinforced cab, with Cat-designed interiors, mirrors, hood and the like. These trucks will be available with a Cat CX31 six-speed automatic transmission with a full torque converter. That tranny has its origins in a 730 rock truck, so it should be able to take some abuse. There are 11 and 13-litre engines available, with horsepower specs ranging from 330 to 475 bhp. The engines use enhanced exhaust gas recirculation (EGR) instead of selective catalytic reduction (SCR). The result is an engine that does not require urea to be added. A lot of these trucks will end up as “body jobs,â€? with dump boxes, cement mixers or garbage bodies shown heavily in the promotional material. But there’s also a tractor version with a day cab. Currently, no sleeper model is available. The ďŹ rst units were delivered in Saskatchewan in early May, with B&M BobCat Services of Pilot Butte taking the ďŹ rst deliveries – CT 660L tractor destined to pull end dumps. ɸ Page A19

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PIPELINE NEWS June 2012

A19

Éş Page A18 “We got our ďŹ rst truck April 24. Now the fun starts,â€? Capnerhurst said. He said servicing for this new line will be done through the normal Caterpillar dealer network. “It’s got a very distinctive truck look,â€? he said. “The front of the grill and bumper are stainless steel, and easily replaceable.â€? The fenders are also easily replaceable. The Caterpillar Product Link System is a cellular-based communications system that provides location and unit telemetry. The operator can track the truck’s location, fuel usage, and even place “geofenceâ€? barriers, allowing for notiďŹ cation if a driver wanders where they are not supposed to.

The new Caterpillar truck will also be available in a tractor conÄŽguraĆ&#x;on. Image submiĆŠed

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Body jobs like this dump truck are one of the applicaĆ&#x;ons envisioned for the new Caterpillar vocaĆ&#x;onal truck. Image submiĆŠed

Bonavista to drill Second White Specks in Sask. Bonavista Energy Corporation has a 2012 capital budget in the $300-to-$310 million range, excluding a $60 million allocation for acquisitions. Two plays will attract much of this year's budget: the Hoadley Glauconite liquids-rich gas play in west-central Alberta, where the company will spend about $100 million drilling 30 to 35 wells. Even at low gas prices, the play remains attractive, thanks to its liquids volumes. Second most active in this year's budget will be Bonavista's Cardium light oil play, also in west-central Alberta, where $70-to-$80 million will be spent drilling roughly 24 to 27 horizontal wells. In Alberta's Deep Basin, the company will pursue liquids-rich gas from several zones, with eight to 10 wells expected to be drilled during 2012. Elsewhere, in its conventional and heavy oil plays, Bonavista plans to drill an estimated eight to 10 wells, although areas

were not speciďŹ ed. Also this year, between 11 and 20 wells will be drilled on a suite of emerging resource plays, according to Jason Skehar, Bonavista president and chief operating ofďŹ cer. Scattered mainly across Alberta, the plays include a Second White Specks oil play situated just across the border, in west-central Saskatchewan. Other emerging plays in the group include a Montney oil play in northwest Alberta, Viking oil plays in central Alberta, two Mannville gas-oil plays in central Alberta, a Birdbear oil play and a Ban oil play in southern Alberta, and a Duvernay gas play in west-central Alberta. In the ďŹ rst quarter, Bonavista saw production rise six per cent, to 70,202 boepd from 66,178 70,202 boepd in last year's ďŹ rst quarter. Gas volumes edged up to 251 mmcf/d from 242 mmcf/d last year, while natural gas liquids volumes rose 25

per cent to 14,623 bpd from 11,741 bpd. Oil volumes slipped three per cent to 13,795 bpd from 14,160 bpd in the 2011 period.

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A20

PIPELINE NEWS June 2012

PIPELINE NEWS June 2012

A21

Desk and Derrick Tour of Trican Well Services

Photos by Brian Zinchuk

Rod Fisk, right, shows oī a bulker used to haul sand to frac operaƟons.

The cement plant has several silos storing the ingredients used in making wellbore cement.

Very specialized sand is used in frac operaƟons.

These two brand new trucks are chem vans.

The Desk and Derrick of Southeast Saskatchewan toured the Trican Well Services base in Estevan on April 23. Here they are shown a cemenƟng truck by staƟon manager Rod Fisk. Trican’s Ňeet gets a thorough cleaning during spring breakup.

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A22

PIPELINE NEWS June 2012

New Pete on the way Estevan – A new Pete is starting to hit the road this summer, according to John Murie, Estevan branch manager for Frontier Peterbilt. The new 579 is an aerodynamic tractor, with a cab eight inches wider than normal, Murie said. The totally new model is primarily meant as an over-thehighway tractor. “They should be arriving in June,” he said. As for oilfield applications, he said, “I would think it’s going to be more on the supply side. As a highway tractor, it’s not built to go in the oilfield. The 367 is our heavy vocational truck. We also sell a lot of 388s and 389s for fluid haulers.” Demand is strong for fluid haulers, especially with a recent shift in hauling shipping patterns. For decades, fluid haulers would do in-field transfers, or go from batteries to pipeline terminals. Now they are increasing unloading at rail facilities.

John Murie is the Estevan branch manager for FronƟer Peterbilt.

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In the back of their yard, several trucks can be found waiting for their turn to head a couple kilometres down the road to unload their crude at the new CN transload facility at Bienfait. Since the site has limited room, trucks will queue at Frontier’s yard and head in when the time is right. This is a recent development, Murie explained, as the facility opened this past winter. Recent changes to venting and flaring regulations have also meant a change in hauling. “They’re hauling more gas now from wells,” Murie said. “Production levels are coming up, so there’s more fluid.” Frontier has also see strong demand for its 367 heavy vocational truck, which sees use in applications like hot oilers, pickers, winch and vacs, to name a few. ɸ Page A23

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A23

PIPELINE NEWS June 2012 Éş Page A22 Since restrictions on tri-drive trucks were lifted in Saskatchewan in recent years, they have come into high demand. However, Manitoba still limits tri-drive usage, which can be problematic. Most oilďŹ eld service companies in southeast Saskatchewan also service southwest Manitoba. “Once Manitoba opens up tri-drives, it will be really popular,â€? Murie forecast. Several full-winch rig-ups are expected to arrive later this summer and early fall to meet demand, he said. Rig movers and camp movers like them. “We also incorporate an end-dump package for most of them,â€? he said, explaining that includes a larger hydraulic tank and control valve to operate the hydraulics. In recent years it has been diďŹƒcult at times to get inventory, but that’s not currently the case. Murie said, as of early May, tri-drives are seeing July to midAugust delivery, while a 367 can be had in about two months. Murie expects a substantial increase in oilpatch activity this year. With the slowdown in natural gas drilling in Western Canada, he thinks that will lead to increased oil drilling in the southeast. “There seems to be increased interest,â€? he said. “It looks really good.â€? While southeast Saskatchewan is really busy, things are going nuts south of

the border in North Dakota, where the state’s daily oil production has doubled in just two years. That’s put a strain on all sorts of services in the state, and has resulted in some spin o business for Frontier. “We get some companies from North Dakota bringing their vehicles up here for repair,â€? he said. “It depends on the day. We don’t get a lot, but a few.â€? However, the ďŹ rm, like nearly every other company that provides heavy duty mechanics in the region, is experiencing an ongoing shortage of technicians. Current recruitment eorts have focused on bringing people over from the economically depressed United Kingdon. “We seem to be getting good applicants from the U.K. We had one start a month ago,â€? he said. Company wide, there are 16 techs being brought over for the four branches. Murie would like to land six of them. Frontier has locations in Estevan, Lloydminster, Saskatoon and Regina. The Saskatoon location has a full collision repair and paint facility.

AdministraĆ&#x;ve assistant Nicole Schrader can be found at the front desk of FronĆ&#x;er Peterbilt in Estevan.

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A24

PIPELINE NEWS June 2012

Cervus Equipment Corp. acquires Frontier Peterbilt Calgary – Cervus Equipment Corp. announced March 19 announced that it had completed the previously announced acquisition of the business assets of Frontier Peterbilt Sales Ltd., the business of Frontier Collision Center Ltd. and certain properties from Frontier Developments Ltd. Cervus acquired the net assets for approximately $33 million including $14.4 million for the land and buildings from Frontier Developments Ltd. through a vendor take back mortgage of $13.4 million and $19.6

million in cash. The assets acquired include four Frontier Peterbilt dealerships/branches located in Saskatoon, Regina, Estevan and Lloydminster, Saskatchewan, and a collision repair centre located in Saskatoon. The acquisition includes all of the real property currently occupied by these locations. Over the last three fiscal periods, the operations of FPSL and FCCL reported on average gross revenue of $79.3 million per year. “The transportation equipment dealership business follows the same operating fundamentals as the agri-

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tation equipment dealerships in Westcultural, construction and industrial ern Canada. After the acquisition of equipment dealerships business and, assets of Frontier, Cervus will operate as such, complements our existing dealership network,” said Peter Lacey, through 42 dealership locations in Alberta, Saskatchewan and Manitoba. president and CEO of Cervus. “This acquisition enables Cervus to diversify Cervus holds an approximate 60 per cent equity interest in Agriturf Limoperationally and geographically and ited, a New Zealand-based corporaprovides a strong platform for future tion that offers authorized John Deere growth.” The business of Frontier Peterbilt equipment, parts and service. The primary equipment brands repreSales Ltd, Frontier Collision Center sented by Cervus include John Deere Ltd will be integrated into Cervus’ agricultural equipment; Bobcat and Construction and Industrial EquipJCB construction equipment; Clark, ment segment and will continue to Sellick, Nissan and Doosan material operate under the Frontier Peterbilt handling equipment; and Peterbilt Sales and Frontier Collision Center transportation equipment. trade names. The common shares of Cervus are Frontier Peterbilt is an award listed on the Toronto Stock Exchange winning exclusive Peterbilt dealerand trade under the symbol “CVL.” ship established in 1981 which sells new and used trucks as well as offers premium parts and service to customers throughout Saskatchewan. The Frontier Collision Center provides a broad range of services including truck and auto repair, detailing and accessory sales. Cervus acquires and manages authorized agricultural, commercial, indus- The newest Pete is the 579, but it will see more use on the Image submiƩed trial and transpor- highway than in the oilĮeld.

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PIPELINE NEWS June 2012

A25

First in a series of motels opens in Shaunavon The Bear’s Den Lodge takes a modular approach to motels.

Photo submiƩed

Shaunavon – The first of several planned motels focusing largely on the Saskatchewan oilpatch opened in early May in Shaunavon. The Bear’s Den Lodge is owned by Bata Dorj. Originally from Mongolia, he’s now a real estate developer who calls Swift Current home. For these motels, Dorj adopted a modular construction technique. This allowed him to take advantage of a slump in the U.S. modular housing market and lower prices. “I’ve got 30 rooms. Out of the 30, three are singles, and 27 are doubles. All have queen-sized beds,” he said. “I’m expecting most of the clientele will be men,” he said, explaining his choice in hand-crafted, rustic furnishings. All the furniture is hand-made of logs by a Montana craftsman. “It gives a lot of character,” Dorj explained. “It’s very high-end stuff. You see it in Banff or very expensive retreats.” Rooms will be equipped with a microwave, fridge and coffee maker. If business conditions change, Dorj noted they can be modified into bachelor suites and one-bedroom apartments. Several locations “I’m building not only in Shaunavon, but also in Weyburn, Moosomin, and Esterhazy. I wish I could find land in Estevan and other areas.” The Esterhazy and Moosomin locations are meant to cash in on the ongoing potash mining boom in Saskatchewan. The Moosomin location is between the Canalta Hotel and Motel 6, while Weyburn’s will be across from the Co-op gas station. All Bear’s Den Lodges will be of similar design, using modular construction. Dorj said this was chosen due to the shortage of building tradespeople. He added there is still substantial work required by local trades for the servicing of lots and installation of the modules. “I used most of the contractors in Shaunavon,” he said, pointing to electricians, plumbers and landscapers as examples. The modules were craned into place onto their piling foundations. Dorj’s modular units originate from Minnesota. Six went into the Shaunavon motel. ɸ Page A26

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A26

PIPELINE NEWS June 2012

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ɺ Page A25 “It takes three to six months to do each project. The next one is Moosomin,” he said. Asked why he’s building numerous motels, Dorj said, “There is a lot of demand. “To site build a hotel in Western Canada, the room cost is over

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$100,000.” That results in nightly rates of $130 to $140 per room. “My cost is under $40,000 (per room). I can rent rooms at $79 and it’s a great saving to the guys paid a daily allowance. And, these are new.” He’s able to take advantage of a U.S. market in need of work, saying, “The housing industry in the States is still in the toilet. It’s not going to last for long. “American manufacturers are willing to work with us. Now they are getting busy at home. “It took me two years to design this unit between engineering firms in Calgary, the Canadian Standards Association and the manufacturer. There is a very short time line to get these units built.” Dorj has looked at Canadian modular manufacturers, but said,

“They can’t even come close to the price I’m getting from the States. I’ve been to most of the CSA-approved plants. They have much bigger economies of scale, and they don’t lose one screw or a minute of labour. “This window is closing. I don’t mind going with partners for land or development, because next year the prices may go up.” When the American housing market does pick up, Dorj forecasts that their interest in Canadian orders will wane. In Shaunavon Dorj is teaming up with the owner of the Boomtown Bistro, Andy Brown, who has extensive experience in resort operation. “He’s going to sell rooms and provide packages for breakfast and lunch. He’s got a lot of experience in the Cypress Hills,” Dorj said.

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A27

A28

PIPELINE NEWS June 2012

Working the oil patch can be a brain booster She talks incessantly. She is my twoyear granddaughter and she is learning to speak English. Most of what Iris says is gibberish (at least to me), but she has the pausing, sounds and the intonations of language. She is saying some recognizable One Woman’s Perspective on Life, words and I latch onto Liberty and the the words I recognize Pursuit of Land Locations and encourage her. I am By Nadine Elson sure that she will soon be speaking very well. I have been thinking about language a lot lately. Anyone who has raised a child has to be fascinated by their ability to acquire language skills. But beyond that I have been thinking about language because I live in Estevan, the small multicultural and multilingual city in the southeast corner of Saskatchewan. I have lived in Estevan my whole life, save for a few years attending university. Many words could be used to describe Estevan during those years, except the words multicultural and multilingual. These words have only been used in the last few years as immigration has increased. The number of technical jobs and jobs in general has outstripped the ability of the local population to ďŹ ll them. In one shopping trip to Walmart, you are likely to hear four dierent languages being spoken and even more accents. Ruslan was one of the ďŹ rst non-English speaking immigrants I met. I met him at church about 5 years ago. He had come from one of the former USSR countries to work at Do-All Metal Fabricating. He was learning English but most of what he said was gibberish (at least to me). Conversation was diďŹƒcult in the beginning, but he did say some words I recognized, and I latched onto those words I recognized and encouraged him. After much practice on his part, he now speaks English very well. I have known for years that there is great beneďŹ t for children to acquire a second language. But the beneďŹ ts are not just for children. The research is now very clear. Learning a new language keeps your brain young. Our brains start to slow down around the age of 30. As we age, our brains start to lose the branch-like connections or synapses between our brain cells, the neurons. Those connections are necessary for thoughts. So over time our brains lose their heft and many scientists thought it was non-reversible. ɸ Page A29

Shifting Gears

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PIPELINE NEWS June 2012 ɺ Page A28 However in recent years, research has shown the brain to be extremely adaptable or “plastic” as neurologists call it. Researchers at York University in Toronto found that picking up a new language at any point in your life can help your brain function and protect against Alzheimer’s disease. That encourages me because I, too, have been learning a new language. Not French, Spanish or Italian. The language I have been learning is the language of the patch. The oilpatch definitely has its own language. I could have used a dictionary of terms when I first started driving hotshot. For instance, a dog house may house your dog but in the patch, it is the shack where the rig crew meets, has breaks and houses the office for the rig company on site. Similarly dog nuts and dog collars do not refer to dogs (although there are sometimes dogs on site) but are oilfield tools. You may take an elevator in the city to get you to a different floor in a high rise, but when I take an elevator, I am taking a tool in the back of my truck to be attached to the rig to help the crew lift a large tool or pipe in or out of the hole. A jar is not a small item to hold pickles, but instead is long tool heavy enough to need a trailer to haul it out to the field. The tool that actually looks like a jar to me but is much larger is not called a jar but called an RS 100. And so it goes. It makes my head spin. But just maybe that is the feeling when new synapses are being formed. The call comes in to pick up at Packers Plus. I am an old hand at this now. I get the trailer and drive over there and in minutes I am supervising the placement of the packers, the anchor, the float and the reamer. It was not always this easy. When I first started loading there a few years ago, everything was new but Keagan, the shop foreman, was patient with me, especially in the naming of the tools. Most of what he said was gibberish (at least to me), but I wanted to know what the tools were called that I was loading on the trailer. “Put the

bridgeport over here,” I directed one time. “It’s a bridgeplug,” he corrected gently, and not for the first time. I could not get the name bridgeplug to stick in my brain. “Right. I knew that,” I laughed. He encouraged me along with others, and after some practice, I now speak oilfield very well. So now not only do I speak another language which aids in my job, I have age-proofed my brain. I have also gained an appreciation for the acquiring of language by children and the difficulties immigrants face in learning a new language. Maybe I’ll

A29

learn Spanish next and keep my brain limber. (Editor’s note: anyone wishing to learn to speak “Patch” might want to check out the Schlumberger Oilfield Glossary at http://www.glossary.oilfield.slb. com/) 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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A30

PIPELINE NEWS June 2012

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Cenovus honours four companies with safety awards Weyburn – On April 23, Weyburn’s McKenna Hall was ďŹ lled with oilmen as four companies were honoured with safety awards by Cenovus. Starting with a safety video, attendees heard how the 20 years has passed without lost-time incidents for PanCanadian/EnCana/ Cenovus employees. Brad Small, Cenovus vice-president for the Saskatchewan Business Unit, said said safety is No. 1. “It’s in our culture.â€? The four companies were nominated for having done outstanding work, and stood out above their peer group. “Cenovus recognizes we can’t be strong as a company without a strong, safe workforce,â€? Small said. He spoke of a challenge with Ron Carson of Carson Energy Services who would have the lowest incident frequency for 2011. “Our numbers were a little better,â€? he said, and as a result, Carson donned a Calgary Stampeders jersey and goofy hat. Carson Energy Services Duane Walkeden of Cenovus nominated Carson Energy Services. Walkeden spoke of a core group of 12 to 15 workers he has had the pleasure of working with since August 2006. The group was initially called Can-West, and then became part of Carson Energy Services. Walkeden went

through an extensive record of over 87,000 man-hours worked over numerous projects. Nearly all had no ďŹ rst aid incidents, no medical aid incidents and no lost-time accidents. One strained back occurred in 2007, and there was another minor incident in 2011. “These guys watch out for each other all the time. They keep safety as their No. 1 priority,â€? Walkeden said. Trevor Hagerman and Dennis McIndoe accepted the award, and designated the Glenavon Lions Club Park as the recipient of the $5,000 donation on their behalf. Trevor Hagerman noted, “You’ve treated us like family.â€? Weatherford Weatherford was the next to be nominated. Five of the global oilďŹ eld service company’s product lines are used locally by Cenovus, and it was noted one will often run into something red (Weatherford’s company colour) while out in the Weyburn ďŹ eld. For a large international ďŹ rm, it was noted Weatherford still maintains a small company feel. Weatherford diligently follows up on near misses and incidents. They also have competency tracking proďŹ les for its sta. “Weatherford was our largest contractor based on dollars spent in 2011 for well servicing. They had one incident

in two years. Dave Reid, Weatherford regional manager, noted, “Southeast Saskatchewan ... is very family oriented. People really do look out for each other. We want to make sure that the culture exists in this area, at Weyburn, Estevan, and into Manitoba, stays the way it should be, because people do indeed want to get home to their families. He added, “Not everyone in this area, or across the Western Canadian basin, drives safety home the way Cenovus does. “They are constantly driving that home. It permeates in the safety culture in this area. “Never underestimate the good work you

AccepĆ&#x;ng their safety award on behalf of D&R ConsulĆ&#x;ng is Conrad Ryan.

do on safety. “We’re on a journey, and we’re not done yet. If we all work to get better, we ultimately will,� Reid said.

Wade Ashford of Weatherford accepted the award on behalf of the front-line workers. He issued a challenge, saying “Is this

industry safe enough for your son or daughter to work in? It’s not just safety ďŹ rst, but safety always.â€? ɸ Page A32

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A32

PIPELINE NEWS June 2012

Donations made on winners behalf to charities of their choice ɺ Page A31 Weatherford directed the $5,000 donation on their behalf to the Weyburn & District Hospital Foundation. D&R Consulting D&R Consulting and Oilfield Supervision was the third company recognized. They have been providing well site supervision in the Weyburn unit for over 20 years. All their current work is for Cenovus. Ron Bartlett, who nominated them, noted, “We’re their only customer. These guys have made careers in the Weyburn unit. D&R has been around for the entire life of the

CO2 initiative in the Weyburn unit. It was noted they are very diverse in their skills, and can handle any job. The consultants have also been very sensitive to land owners and roads. “Last year we got zero complaints from the pasture managers,” he said. D&R has worked on developing standards for injection well abandonment. They’ve also been willing to share knowledge with other consultants. “They’re excellent leaders by example. We don’t have any safety incidents on record for themselves or the crews they’ve been supervising,” Ron Bartlett said. In response, Conrad Ryan said, “If we weren’t

comfortable with something, they’ve always been there to support us in any decision we’ve made as D&R representing PanCanadian, EnCana or Cenovus over these years. We’ve always known we were supported. “We work with a lot of great contractors. ɸ Page A33

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Brad Small, right, Cenovus vice-president of the Saskatchewan Business Unit, presents Ron Carson with a Calgary Stampeders jersey and hat.

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PIPELINE NEWS June 2012

A33

As a safety award, Cenovus donated $5,000 to the Glenavon Lions Club on behalf of Carson Energy Services. From leŌ to right are Dennis McIndoe (Carson), Melissa Balogh (Glenavon Lions Club), Skeeter Haus (Glenavon Lions Club), Trevor Hagerman (Carson).

The Hospitals of Regina foundaƟon received $5,000 from Cenovus Energy on behalf of D&R ConsulƟng and OilĮeld Supervision in recogniƟon of their safety performance. From leŌ to right are Tyler Rude (D&R), Nora Yeates (Hospitals of Regina FoundaƟon), Larry Istace (D&R), Conrad Ryan (D&R).

Precision Drilling Rig 275 chose The Family Place in Weyburn as the recipient of a $5,000 donaƟon, made by Cenovus on their behalf. From leŌ to right are Henry Krowicki (PD), Shaun Robstad (PD), Brennan Zackrisson (PD), Shelley Hoium (The Family Place), Dawn Gutzke (The Family Place).

Weatherford’s safety record inspired Cenovus Energy to donate $5,000 on Weatherford’s behalf to the Weyburn and District Hospital FoundaƟon). From leŌ to right are Dave Reed (Weatherford), Bernice Erickson (Weyburn and District Hospital FoundaƟon), Wade Ashworth (Weatherford), Kim Thorson (Weyburn and District Hospital FoundaƟon).

FULL CONSTRUCTION SERVICES ɺ Page A32 “The main goal is to do the job safely. Safety is a lifestyle, isn’t it? If we come to work every day, and that’s the most important thing we have set before us, we know we’re all going to go home at night. That’s something we’re thankful for, that we’ve been able to work for a company that promotes that.” The Hospitals of Regina Foundation was the beneficiary of the $5,000 given on behalf of D&R. Precision Drilling Rig 275 Steve Jenkins of Cenovus nominated Precision Drilling Rig 275. He noted they had 3,050 days since that rig’s last lost-time accident, which occurred Sept. 29, 2000. “That’s pretty amazing. “These guys have been together a long, long time,” Jenkins said, noting the last seven years have been with Cenovus. One of the drilling supervisor’s sons now works on the rig. He added that underbalanced drilling can be tricky. Ross Pickering, senior vice-president of operations with Precision said, “We also chose this rig as our rig of the year for Precision Drilling.” He pointed out the rig is over 30 years old, but, “It’s not about the iron, it’s about the people. “We’re also giving them a new drilling rig. They don’t really want one, but we’re giving them one.” The donation on behalf of Precision Rig 275 went to the Family Place in Weyburn. Darcy Cretin of Cenovus summed up by saying it’s great to identify new recipients each year, adding it’s a snapshot of all the companies they work with. He noted that while last year they celebrated 20 years without a lost-time accident among employees, “We’re on the first year for the second 20.”

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PIPELINE NEWS June 2012

Permitting stays strong in Saskatchewan Tamarack Valley Energy Ltd.’s 2012 capital expenditure budget of $30 million to $35 million will focus on Cardium oil horizontal development at Lochend/Garrington, Viking oil horizontal drilling in Redwater and heavy oil drilling in Saskatchewan. More than 90 per cent of that budget is allocated to the drill bit, compared to 67 per cent in 2011 when Tamarack spent $40.5 million on capital expenditures. The company expects production in 2012 to average between 2,000 and 2,200 boepd, weighted 43 to 47 per cent towards liquids. It anticipates exiting the year with output of between 2,600 and 2,700 boepd, weighted 51 to 53 per cent liquids. Capital spending is based on Edmonton Par pricing of $75 per bbl. for June through December 2012 and a 2012 AECO average of $2.15 per gigajoule. The capital program will be funded by cash flow from operations, funds from the subscription receipt financing in April 2012 and bank debt.

In the first quarter of 2012, Tamarack (formerly Tango Energy Inc.) drilled one Cardium oil well in Buck Lake and completed a Viking oil well in Foley Lake. Also during that quarter, Tamarack began to shut in natural gas wells due to lower commodity prices. Throughout this year it expects to shut in approximately 50 boepd day of gas volumes. The company designed a conservative drilling program for the first quarter of 2012 as a response to lower gas prices and higher costs for services during the busy winter period. There were also industry concerns regarding widening crude oil differentials between West Texas Intermediate and Edmonton Par prices that continue to affect the company’s wellhead prices, said Tamarack, in reporting its fourth-quarter results. Company output increased 37 per cent during the fourth quarter and 42 per cent throughout 2011 compared to the same periods in 2010, while funds flow and revenue also improved.

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The 2012 acquisition of Echoex Ltd. added low-cost, high netback Viking oil drilling inventory to complement Tamarack’s Cardium and heavy oil opportunities, it said. Having three de-risked plays allows the company to allocate capital to its highest rate of return opportunities, while diversifying risk across a suite of oil resource plays, said Tamarack. During 2011, oil and natural gas liquids output increased by 630 per cent. Consequently, yearly operating netbacks were up more than 115 per cent to $30.69 per boe as higher netback oil production was added from core areas. Tamarack built out three additional oil resource areas from one in 2010, while non-core gas-prone lands were sold with proceeds redirected to building positions in oil-prone lands. The company now has access to more than 80,000 acres of oil-prone lands across four key plays, representing an increase of 73,000 acres compared to 2010. Three-dimensional seismic was shot in the Manitou Lake heavy oil area in Saskatchewan and several drilling locations were identified. Also during 2011, Tamarack drilled horizontal wells and de-risked two of its core areas. The three successful wells at Lochend/Garrington and the two successful wells in Buck Lake significantly increased liquids volumes. During the fourth quarter of 2011, Buck Lake volumes accounted for 32 per cent of Tamarack’s production. All five Cardium wells have performed better than their respective area’s offsetting average production rates, reported Tamarack.

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A35

Not just a number with a smaller outÀt

Dave LiƩle, leŌ, is the dispatcher for Sonic OilĮeld Service, while Vern Carlson is Estevan's terminal manager.

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Estevan – Being a little smaller can make a difference when it comes to attracting employees, according to Vern Carlson of Sonic Oilfield Service Ltd. Carlson is the Estevan terminal manager for Sonic. “Our main office is in Medicine Hat. We have a terminal here and one in Swift Current,” he said. There’s also a location in Weyburn. The company has been in business since 2004, and in Estevan since 2007, he explained. The bulk of Sonic’s business is fluid hauling – oil and salt water – but they also have a number of specialty trucks, including acid, vac and pressure units. A lot of the work is in-field production hauling, but they also assist with service rig work. “There are 34 employees out of this terminal. We have roughly 25 trucks,” Carlson said. The majority of those employees are leased operators. While their service radius out of Estevan is about 100 miles, most of their oil hauling is done west of Estevan in the Weyburn field, Oungre, Gladmar and Minton areas. “We’ve been growing. We’re waiting on trailers,” Carlson said. “They bought a bunch of new trucks this year – all Western Stars,” he said. While most trucking outfits are looking hard for drivers, Carlson said, “They find us. Three times a week I get calls from guys who want to lease on.” He credits the smaller size of the company for that interest. “It’s more personal. When there’s 300 of you, you’re just a number,” Carlson said, referring to some of the larger operations in the region.” It also helps that Sonic’s staff is all local, meaning housing has not been an issue like it has been for other companies. As of early May it had been slow going with the wet weather, but Carlson noted, “It’s a lot better than last year.” “It takes twice as many trips to do the same work. We haven’t had too many problems this year. Last year a lot of our stuff got shut down.” “It sounds like it’s going to be a busy year. Everyone plans on being busy,” Carlson concluded.

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A36

PIPELINE NEWS June 2012

Weatherford hosts BBQ Weatherford held a barbecue to beneÄŽt the Estevan FireÄŽghters AssociaĆ&#x;on on May 9 at their Kensington Avenue locaĆ&#x;on. Here Karys Mack checks out a ÄŽre truck. Photo courtesy Estevan Mercury

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Oilsands Quest still on life support Calgary – An Alberta Court has granted Oilsands Quest yet another extension of creditor protection. The previous extension was to have expired May 18. The latest renewal provides the beleaguered company with further creditor protection

to June 29 under the Companies’ Creditors Arrangement Act unless further extended as required and approved by the court. As previously announced, Oilsands Quest is conducting a process to solicit oers to acquire, restructure or

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recapitalize itself with the assistance TD Securities Inc. In a May 11 news release, the company reports that none of the proposals received to date are in a form that would result in a sale or investment that would be in the best interests of the company or its stakeholders. Negotiations are continuing to determine whether certain of the proposals could be amended to form the basis of an acceptable transaction to be brought before stakeholders and the court for approval. There can be no assurance that the ongoing solicitation process will result in a ďŹ nancing or a sale of the company or in any other transaction. Trading in the common shares of Oilsands Quest remains suspended while the NYSE Amex determines whether to resume trading or to delist the company for failure to meet listing requirements.

PIPELINE NEWS June 2012

Under construction Regina – The shortest driving route between two points in Saskatchewan could be under construction this season. The 2012 highway construction season is underway with more than 1,200 kilometres of major improvements and planned maintenance targeted for completion. The work will be funded by a Highways and Infrastructure budget of $581.5 million, the second largest budget in the province’s history. The major projects include the construction start of the Estevan truck bypass. Work will continue on the West Regina Bypass including new lanes from Highway 1 to Dewdney Avenue and a new interchange at Highway 1 to improve safety and access for truck traffic to the Global Transportation Hub. Crews will also begin work on new passing lanes for Highway 10, Balgonie to Fort Qu’Appelle, as part of a new passing lane initiative. Work will proceed this season to complete the twinning on Highway 11 between Saskatoon and Prince

Albert, which involves opening new lanes from Rosthern to north of MacDowall. A total of 150 kilometres of rural highway upgrades is also targeted to be complete this season. This will increase Saskatchewan’s network of primary weight corridors, as well as improve commuter and tourism routes and safety for motorists. “We’ve put more than $2.2 billion into our highway system over the past four years,” said Highways and Infrastructure Minister Jim Reiter. “We’re going to build on that by continuing to invest another $2.2 billion over the next four years. We are committed to improving the highways for Saskatchewan people.” Major improvements, including new capital work which is primarily completed by contractors, span more than 533 km, while planned maintenance work, performed primarily by ministry crews, totals 675 km worth of work. “This significant investment in our highways will help to tackle the challenges that have come from years of neglect, and at the same time ensure new

DUSTIN DUNCAN, MLA Weyburn - Big Muddy 35-5th Street NE, Weyburn, SK S4H 0Y9 (Tel) 842-4810 (Fax) 842-4811 (Toll Free) 1-877-842-4810

infrastructure is in place to accommodate our growing agriculture and resource sectors,” said Shantel Lipp, president of the Saskatchewan Heavy Construction Association. The 2012 construction plan includes a total of 320 kilometres of repaving and more than 675 kilometres of maintenance work to preserve and repair damage to the highway network. A total of 33 bridge and culvert replacements or repairs will be completed to address these aging structures on the transportation network. In addition, there will be continued work to replace the 100-year-old St. Louis Bridge off Highway 2. All construction projects are dependent on weather and contractor progress. Maintenance plans may be revised based on changing needs. For more information on construction projects go to www. highways.gov.sk.ca for a full project list and map.

More than 1,200 kilometres of roads and highways in Saskatchewan will be under construcƟon this season. File photo

Safety Ňaggers such as Michelle Hamelin with Potzus ConstrucƟon Ltd. who stopped traĸc during the upgrading of Highway 40 in 2010 will be a familiar sight during the 2012 road construcƟon season in Saskatchewan. File photo

A37

A38

PIPELINE NEWS June 2012

Sask. employers offer 280 positions to skilled workers Regina – As of April 24, Saskatchewan employers have offered more than 280 positions to skilled workers as a result of the March 2012 mission to Ireland. This means that the goal of this recruitment mission has already surpassed its objective of 275 jobs being offered. The delegation, which included 27 Saskatchewan employers, took part in recruitment fairs in Dublin and Cork. A substantial number of those businesses are in the Saskatchewan oilpatch. The employer-driven mission included both Premier Brad Wall and Advanced Education, Employment and Immigration Minister Rob Norris. The government of Saskatchewan provided on-the-ground

advice to Saskatchewan employers and assistance to potential candidates. "The response from Ireland was both positive and sobering," Norris said. "While thousands of people in Ireland continue to look for opportunities in Canada and elsewhere, we are pleased to be able to invite more than 280 of the skilled applicants to come and discover the Saskatchewan Advantage." An initial result of the delegation has been an increase in interest regarding the saskjobs.ca website since then. In March 2012 alone, there were 13,706 visits from Ireland, compared to 9,312 visits from Ireland in 2011.

Advanced EducaƟon, Employment and ImmigraƟon Minister Rob Norris.

The list of Saskatchewan businesses seeking Irish workers is extensive. They included:

The lineup outside a job fair in Ireland that included numerous Saskatchewan employers was a sight to behold, and in many ways, humbling to those who were part of the mission. Photo courtesy government of Saskatchewan

• Alliance Energy • Allnorth Consultants Ltd • Ardel Steel • Brandt Industries • Double Diamond Structures • First Canada ULC • JayDee AgTech • JNE Welding • Kelly Panteluk Construction Ltd. • Kelsey Group of Companies (Kelsey Pipelines &Kelsey Trail Trucking Ltd.) • Korpan Tractor • K&R Dahl Contracting • Industrial Machine & Mfg. Inc.

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PIPELINE NEWS June 2012

PIPELINE NEWS

B-SECTION June 2012

The BoeƩcher family has been in the Ňuid hauling business for 50 years, ever since Jim BoeƩcher teamed up with two partners to form Three Star. Jim and Mary’s sons Ken and Tim now run it, although last year two-thirds of the company was sold. From leŌ are Tim, Ken, Mary and Jim BoeƩcher. Behind them is a copy of the Įrst truck Jim ever owned. To the right is a much, much larger truck now owned and operated by Ken’s son Chase.

Three Star Trucking celebrates 50 years By Brian Zinchuk Alida – Fifty years in, Three Star Trucking Ltd. of Alida is continuing to grow at an amazing pace. The company is now operating around 200 trucks, a far cry from the one 50-barrel, single axle truck it started off with. The last few years especially has seen a surge in growth. The company now has around 280 employees. Last July it was announced that two-thirds of Three Star Trucking would be sold to Provident Energy Ltd. The deal closed in October. It was part of an eventual exit strategy for the Boettcher family, who has owned and operated company since its founding in 1962. The third generation of Boettchers is already part of the company. Ken Boettcher is the vice-president who handles sales and contracts. Day-to-day operations fall to his brother, Tim, who is also a vice-president. Founder Jim Boettcher is still active in the company as a director, and his wife, Mary, is typically found in the office, assisting in administration. Provident Energy was then purchased by Pembina Pipeline Corporation

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on April 1, 2012. The new ownership came with deeper pockets, and some new strategic initiatives. The company, which until recently had primarily hauled crude oil and salt water, is now active in the natural gas liquids and diluents hauling business. That’s in keeping with Provident’s, and now Pembina’s, focus as mid-stream operators. “We started hauling NGL trailers,” Tim said, nothing the new direction is an outgrowth from the Provident deal. Other than that, not a lot has changed in how the business is run with the new ownership. “It didn’t change anything,” Tim said, adding, “I’ve heard rumours – everything from they’re buying us out to we’re buying it back.” Neither Pembina nor Provident had trucks, so there’s been no significant change in how they do business. However, there is opportunity. “They’re looking at expanding us to Alberta immediately. They’ve got plants all over Alberta. It would be all over Alberta and into the Taylor and Dawson Creek, B.C. area,” Ken said. ɸ Page B2

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PIPELINE NEWS June 2012

Fluid hauler grows into NGL carrier as well Éş Page B1 However, since the work is so widely distributed, there are no plans for an Alberta base yet. “We’ll end up adding more sta to take care of it,â€? Tim said. “Some will come from here,â€? Ken added. While NGLs are a dierent product, they said fundamentally it is still loading and unloading. Typical runs involve transporting NGLs from a gas plant to an unload facility. For their home turf, that means trucking the NGLs to a brand new facility Provident set up just north of Cromer, Manitoba, near Enbridge’s major mainline terminal. “This is a ďŹ rst for (Provident) out here. It goes into Enbridge’s pipeline and goes east,â€? Ken said. That facility opened in mid-April, with construction having started last summer.

Three Star Trucking is now hauling American oil to the CN transload facility at Bienfait.

“There’s a lot of NGLs in this area,â€? Ken said. American run In recent years Three Star has been active hauling crude from proliďŹ c North Dakota ďŹ elds to Enbridge terminals in Saskatchewan. From there, the American crude would enter the Enbridge Westspur

system, and be piped to Cromer. From Cromer the crude would then be shipped southeast into the United States. This aspect of the business has been driven by a lack of crude oil takeaway capacity in North Dakota. The state has doubled its oil production in just two years, eclipsing

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Saskatchewan’s total daily production. For Three Star, the business has been cyclical, with increased hauling when there was a shortage of North Dakota takeaway capacity. This would fall o when more pipeline or rail capacity would open up, only to see their trucking build up again as daily produc-

tion capacity would increase. Ken pointed out there were 209 rigs working in North Dakota on May 8. “It’s slower down there right now,� Tim said of the amount of crude they are bringing into Canada. “They’re putting a lot more in trains.� Ken added, “It can

go to any reďŹ nery on trains.â€? The American run has been as high as 20 per cent of their business, but that’s fallen by about half recently. “I imagine by probably June, we’ll be back up to 10,000 to 12,000 barrels per day,â€? Ken said. ɸ Page B3

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PIPELINE NEWS June 2012 Éş Page B2 Instead of hauling to Enbridge terminals, some of that oil is now going to rail facilities, such as CN’s new transload facility just west of Bienfait. It’s located on Highway 39, the main route from North Dakota, via North Portal. Western Canadian oil has been sold at a discount in recent years due to the glut of oil at Cushing, Oklahoma, one of the pressing reasons behind the proposed Keystone XL pipeline and the growth of crude-by-rail in Saskatchewan and North Dakota. Ken said, “Rail facilities are the big thing. It can go anywhere in North America. Anything that goes on rail is sold at Brent or full WTI price. The Enbridge system accesses a limited number of reďŹ neries, and they’re all full.â€? Tim pointed out that even Enbridge is building a rail loading facility in

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North Dakota. “It’s been the last four or ďŹ ve months where that’s really taken eect, where they’re pushing more to rail,â€? Ken said. Frac trailers The pace of growth has slowed somewhat since last summer, adding about ďŹ ve trucks since then. At one point in 2011 the company was adding an average of six trucks a month. But now instead of trucks, they are picking up numerous 500-barrel frac tank trailers. They’ve also acquired two frac heater units. “We’ve got about 90 frac tanks since (last summer),â€? Ken said, noting they added three winch trucks to deal with them. This style of tank, which has its own axle on the back and ďŹ fth wheel on the front, is becoming much more common in Saskatchewan now, supplanting the typical 400 barrel, vertical cylindrical tanks on skids that are usually used. Tim noted there are thousands of such frac trailers in North Dakota. “They hold more uid and are easier to get around,â€? Ken said. “We’ve got them pretty much all booked. They are in demand.â€?

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Chase BoeĆŠcher is one of the third generaĆ&#x;on BoeĆŠchers now working with Three Star Trucking. Here he’s performing some maintenance on his personal Peterbilt.

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PIPELINE NEWS June 2012

It all started with one little truck By Brian Zinchuk Alida – Jim Boettcher’s eyes light up as he opens the door and climbs into the truck. It’s not the truck he started business with, but it’s one just like it, and painted in Three Star Trucking colours. The truck has been restored and kept up, and a few days later, would be put on display at the Redvers Oil Showcase. This little single-axle truck is dwarfed by the big Peterbilt his grandson, Chase Boettcher, pulled up alongside. Jim, whose preference is for Mack trucks, The trucks have goƩen a lot bigger since Jim BoeƩcher started driving. His Įrst truck looked just like this one.

Congrats Three Star Trucking on 50 years! Alida Farm & Auto 443-2266

was ragging on his grandson, asking if his Pete started for him that day. Chase Boettcher replied with a smile, “Yep, boosted two Macks on the way in.” Jim and his wife of 55 years Mary started Three Star Trucking with two partners fifty years ago this year, but he had been hauling before that. “In 1959 we bought a water truck and were hauling water to the rigs,” Jim said over lunch at a local restaurant. “In February 1960 we came to Alida to haul oil until the rigs started again. In November 1962, we bought out Les Parcell’s Trucking, the Alida division. That was John Hall, George Connelly and myself. We formed Three Star Trucking. ɸ Page B5

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PIPELINE NEWS June 2012 Éş Page B4 “We had one truck each, straight body jobs, with 50 barrel tanks,â€? he said. “In the spring of 1964, I lost some hauls to the competition. George Connelly left to go farming. “In 1969, John Hall went on the highway because we were doing next to no work. It was a bad spring. The roads were ooded out like last year. On May 1, Mary and I took it over. I bought one of John’s trucks, I had one of my own, and Ed Gervais came on as a leased truck. Jim noted, “This trucking has been quite a deal. It has its ups and downs, but more ups than downs.â€? The 1970s were tough times for the Saskatchewan oilpatch, when the new NDP government under Allan Blakeney brought in Bill 42 and brought Saskatchewan’s oil industry to a crawl. “We went on strike,â€? Jim said. “As tank trucking, we were fortunate, because you have to move a certain amount of uid. We went in sympathy with the oil companies.â€? “I was still driving truck. Mary was taking calls, doing the dispatching. You couldn’t expand, because there wasn’t activity. You stayed with what you had. Production was still ongoing. A well still had to be serviced to a certain extent. Mary was also doing books, and occasionally getting behind the wheel. “I even drove truck a few times,â€? she said. By the early ’70s, the company had about six trucks all together. The trucks were starting to get bigger, with tandems being added to the eet. Yet back then, having a bigger truck wasn’t always better, as is often the

case today. Jim noted Parcells lost his work from BA Oil because he had some tandems with 100-barrel tanks. “They were ‘too big for the oil patch,’â€? he recalled. “The engineer’s theory at the time was if you needed 100 barrels capacity, you could get two 50-barrel trucks, and that way you could send one home.â€? Trucks are a lot bigger now. “We’ve got Super-B’s that can technically haul 300 barrels.â€? “They were all conventional wells. A lot might be making 30 barrels a day. A lot were single well batteries,â€? he explained. In 1971, Edgar Bendtsen joined the company, initially as a driver for a lease operator. Their longest-term employee, he’s still with the company, supervising the American run. Jim and Mary had four children, starting with Bonnie. Ken, Debbie and Tim followed. The boys got involved with the business, but the girls did not. “Ken and Tim both drove trucks,â€? Jim said. “Ken did it before he was old enough. I had him doing an inďŹ eld transfer. He was 15.â€? About 1977, things started picking up again. “We expanded, and took on three more trucks. We were up to nine,â€? he said. “In the late 1970s, Gulf Oil drilled south of Alida, and we did the transfers for them, and the completions. “At one time we used to load rail cars out of here,â€? he added. "We kept three trucks or so busy with them.â€? Now things have come full circle, with Three Star trucks hauling to CN’s transload facility at Bienfait.

B5

The capacity of this old Chevy was just 50 barrels. At least one engineer thought a 100-bbl. truck was too big for the oilÄŽeld.

In the 1980s they expanded again. The change in the provincial government deďŹ nitely helped, but then the federal Liberal government under Trudeau brought in the National Energy Program. Jim still remembers hearing the radio announcement while doing a job south of Alida.

“That really held things up,â€? he said. “It was a hard pill to swallow.â€? Jim recalled that oil was around $2 a barrel in 1960, and eventually rose to $3.80 and $4. “Someone once told me if it got up to $20, they’d go crazy. That’s not too many years ago.â€? ɸ Page B6

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PIPELINE NEWS June 2012

Was a tandem too big? One engineer thought so Éş Page B5 Now oil has been hovering around the $100 a barrel mark. In 1989, they built the current oďŹƒce, which has since been expanded. Now they have operations based in Carlyle, Redvers, Wapella and Pierson, Man. By the 1990s, they had around 40 trucks. Ken had his own truck and driver, and Tim drove his own truck. Ken also dispatched for years. In 2000, Tim and Ken began the process of taking over the company. The big push has been in the last ďŹ ve years, which has seen the most growth. “Part of that is due to the U.S. oil we hauled,â€? Jim said. “We’ve been working in the U.S. since the late ’90s.â€? In 2007, Jim was honoured as Southeast Saskatchewan Oilman of the Year, along with Ken Cugnet of Valleyview Petroleums. Asked what his position with the ďŹ rm is now, Jim said, “I’m technically a

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director for Pembina.â€? Jim is still involved, or, as he puts it, “In the middle of it all the time.â€? “The equipment is unreal,â€? Jim said, noting a conversation between himself and Edgar. “He said, ‘It’s too bad we didn’t have trucks like that then.’ “‘Yeah,’ I said. ‘We wouldn’t know how to drive them.’â€? As for other changes, he noted, “Roads, I would say, all-in-all are better. But what hurts the roads today is that we do have bigger trucks.â€? Running a family business can have its moments. Tim at one point decided he was going to sell water puriďŹ ers. Jim said he left on a Thursday and phoned on Sunday. “When are you coming home?â€? Jim asked. “In about two hours,â€? was the reply. Ken also did some carpentry work. “We got along,â€? Jim said. The two boys and I worked together. Mary’s just like one of the other girls. She has her job. “We can sit down, talk things out. I learned over the years a lot of times, they’re right and I was wrong. I don’t like to admit it. “I’m not saying we always got along. You have to iron your dierences out,â€? Jim said. Three of their grandchildren work in the business. Justin and Chase, Ken’s sons, have trucks on with the company. Dallas, Debbie’s son, also has trucks leased on. One grand-nephew, Murray Conrad, is a supervisor. Carl Boettcher, another nephew, looks after frac tanks and frac water heaters. He said when they made the deal with Provident, the buyer didn’t want any changes at all. “You guys run the business and carry on as such,â€? Jim said they were told. “Pembina, as far as I know, is all the same.â€?

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PIPELINE NEWS June 2012

B7

Driving the books

Chelsey Mailhiot, and Gord Barron can be found in the dispatch oĸce of Three Star Trucking.

The oĸce staÄŤ of Three Star Trucking, are, from leĹŒ in the back, Anita Chuba, Samantha Hull, Stephanie Zelionka, Stefanie Anderson, BriĆŠany Dubuc, April Junk, Kammy Domm, Diane Zander, and Claire Alexander. Seated, front leĹŒ, is Mary BoeĆŠcher, and front right is Sharon Jensen. Missing are Gaylene Stovin and Angele Lanski.

Alida – With hundreds of trucks in the ďŹ eld, the oďŹƒce sta needs to be the glue that keeps bills getting paid and accounts receivables coming in. Heading up that operation for Three Star Trucking is Sharon Jensen, oďŹƒce manager. She started in 1999, and has seen “just a tadâ€? of growth since then. Now they have over 100 leased operators, Jensen noted. The oďŹƒce sta has grown to approximately 14, including two part-timers. Mary Boettcher, one of the company’s founders, is still actively involved. “That’s a huge help,â€? Jensen said. “If they’re gone for three weeks, I’m like, ‘Where’s Mary?’ “I’ve got some really good, key people I can count on,â€? Jensen said. “It’s having the right people in the right place. I’ve got some really good help.â€? Jensen is married to a farmer, and had worked part-time at MLA Dan D’Autremont’s oďŹƒce. As a farm wife, she stayed home to raise the kids. She didn’t work o the farm until she and her husband,

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Larry, had been married for a decade. Larry had driven for Three Star for a few years in the past. Most of the oďŹƒce sta don’t have their signiďŹ cant others working for Three Star. That’s remarkable, given Three Star’s size as such a large employer in such a small community. It’s not easy to ďŹ nd sta, Jensen said, but they have many from surrounding communities, including Redvers, Glen Ewen, Carndu and the area surrounding Alida. A couple live in Alida, proper. Since everyone is local, the oďŹƒce sta have not had to contend with the housing shortage plaguing most oilďŹ eld operations in southeast Saskatchewan.

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Westrans is extremely proud of our long standing relationship with Three Star Trucking and would like to congratulate them on 50 outstanding years of dedicated service to the oilfield industry.

904 East Avenue Weyburn, SK 306.842.7487

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• Canada & United States Oilfield Tank Trucks • Hot Oil Trucks & Super Heaters • Pressure Trucks • Bobcat & Gravel Trucks •Backhoe • Frac Water Heater & Frac Tanks • Crude Oil • Fresh Water Hauling • Hot Oilers • Steam Trailers

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Safety

Established

We believe that safety and operational excellence go together. We have comprehensive safety programs that are based on the policy of an accident free environment.

Three Star Trucking Ltd. was established November 1, 1962 and was a three truck operation comprised of 50 bbl, single axle trucks.

Thank You to our customers for your support over the years

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Phone: 443-2424 Fax:443-2433 Box 160, Alida, SK S0C 0B0

PIPELINE NEWS June 2012 Edgar Bendtsen has a crystal ball on his desk, a useful predictor of the trucking business.

41 years since starting, Edgar Bendtsen is still at Three Star Bendtsen worked with SaskTel from 1963 to 1969, ďŹ nishing up as a cable splicer in Regina. Bendtsen started with Three Star as a driver for a leased operator. “When I started, I drove for a lease operator, Ed Gervais. “I was here for a few years, quit, came back. This is my third go around. “I started dispatching in ’85 in the old building downtown years ago.â€? He had quit for eight years to go farming, but his son Steven eventually took over the farm. Steven, a journeyman mechanic, also works in the shop in addition to farming. The Bendtsen farm is three miles south of Alida. Over the years, he’s seen a lot of changes, particularly in equipment. Most of it is for the better, but not all. “When I started here, we had one radio channel with a range of about 35 miles. Now we have four channels that covers the southeast and into Manitoba and North Dakota as well. “We have cellphones as opposed to old mobiles. They were an adventure.â€?

Alida – “Yeah, it was ‘’71,â€? Edgar Bendtsen said, sitting behind his desk on the second storey of the main Three Star Trucking shop. Bendtsen has been with the ďŹ rm for the better part of 41 years, making him the longest-term employee except for the founders. “Right now, on my time sheet I put supervisor in charge of U.S. oil movement,â€? he said. “Sounds pretty fancy, don’t it? The two guys who walked out of here do most of the work.â€? Like many young men in southeast Saskatchewan, Bendtsen tried his hand on the drilling rigs, but not for very long. “Just enough to ďŹ nd out rig work is no place for me. I was too young to be there, I was 16 in 1963. I roughnecked for two holes. The rig shut down. When it started up, I had another job.â€?

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“The equipment is so much bigger. Ther’re more comfortable now, and more convenient. I never ran one with air conditioning.â€? Mechanically, however, Bendtsen feels some of the changes aren’t as desirable. “I’m used to a truck stopping because a fuel line is plugged. Now you have a quarter million dollar unit stalled on account of a broken wire.â€? Bendtsen has been taking care of the U.S. haul for four years now. It’s had a lot of volatility as pipelines opened up, then demand for trucking grew again when pipelines ďŹ lled. They’ve gone from a peak of 24,000 barrels a day on that run to 8,000 recently. But that number is expected to rise again. “One day chicken, the next day feathers. I suspect it will always be like that,â€? he said. “You know the oilpatch prayer. ‘Let there be one more boom, Lord, and I promise not to piss it away.’â€? Asked if he plans on retiring, Bendtsen said, “I had a plaque on the wall that said something interesting. ‘The only reason I hang around is to see what will happen next.’ That’s the best way to put it.â€?

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PIPELINE NEWS June 2012

One of the Bakken pioneers speaks at Redvers Oil Showcase Painted Pony CEO was one of the Àrst to target the ViewÀeld area By Brian Zinchuk Redvers – Imagine being one of the first people to develop a field that is now having an impact on global oil stocks. That’s where Painted Pony Ltd. president CEO Patrick Ward was in 2004. Ward was the keynote speaker for the banquet portion of the Redvers Oil Showcase on May 10. He started off by explaining his family’s long and deep Saskatchewan roots. His grandfather, for instance, found out during the Depression that he was losing $5 a pig when he shipped them to Winnipeg for slaughter, so he decided to slaughter his own and give away the rest. While lauded for his charity, Ward noted his grandfather felt he was saving $5 a pig. “We’re standing on their shoulders,” he said. His own father served during the Second World War from 1939 to 1946 and was a guard at the Nuremburg Trials. He eventually rose to the rank of major. That also meant, as the son of an officer, Ward moved around a lot. He was born in Goose Bay, Newfoundland and Labrador. A few years were spent in Regina. He took his geology degree at the University of Calgary, completing it in 1978. Pointing out some highlights of Saskatchewan oil production, Ward said the Weyburn field is a giant field. But when it came to the first horizontal drilling application in the Bakken in July 2004, he noted it would eventually become the largest on-shore discovery in 50 years. Ward was vice-president of exploration with Innova Exploration, a company that partnered with StarPoint in the initial Bakken discovery wells. “We pooled our land, about 15 sections, and drilled the first well,” Ward said. He had been invited to the StarPoint office in Calgary in June 2004, where it was proposed they should drill the first well, just south of Stoughton. ɸ Page B11

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PIPELINE NEWS June 2012

ɺ Page B10 “It was as rank exploration as you get. It was either all oil, or all nothing. “We didn’t think it would amount to anything,” Ward said. He got the call on Stampede Friday, a day when very little work is done in Calgary. Ward was told it was flowing 1,200 barrels per day. “Of what? Water?” he asked. “No, oil.” “We stepped out eight miles to the southeast, and eight miles to the southwest, and they all looked similar,” Ward explained. They weren’t able to entirely capitalize on it, though. “All the big guys came in and blew us out of the water at the land sales,” he said. “We couldn’t compete. We had $12 million.” Saskatchewan would soon be seeing record lands sales, principally from that area, in the following years. They did end up grabbing some land at Huntoon, Kisbey and Flat Lake. “We (Innova and StarPoint) started buying land together, and had accumulated at least 100 sections. You’ve got to be at least six months ahead of the picture. We went through about seven different frac designs.” It was the Packers Plus design for multi-stage fracs that took off. “It was the first that perfected that technology. Others got into it,” he said. “To me, a resource play is a play that has hundreds to thousands of locations. You can experiment – try it three or four times, and repeat it a thousand times. That’s where you make your money.”

Regarding Painted Pony Petroleum, he said, “We’re five years old, with $551 million market capitalization, about 7,000 boepd, of which 78 per cent is gas.” Ward said it is nearly all of their growth has been through the drill bit. “We only had debt in the company for six weeks, and that was because the CFO was on holidays,” he joked. “We don’t like debt.” “I’ve worked this province for 30 years as a geologist, and am always amazed,” he said. “We’re focused on Saskatchewan’s light oil,” he said. “Last year was a tough one for everybody.” Ward said they helped some farmers whose houses were about to be flooded last year. “That’s what we believe in – we all dig in,” Ward said. Painted Pony’s Saskatchewan production was 1643 boepd in 2011. “(The Bakken) should work for CO2 flood if they can solve the challenge of flooding a field that has been horizontally drilled and multi-stage fracked,” he forecast.

B11

Saskatchewan has a great royalty structure, he said, suggesting we should have “Brad Wall for prime minister. “We had a guy named Ed. We needed to see if we could trade him,” Ward said. In the Alberta Viking, Ward said it was a good reservoir for fracking – something they intend to do. “We’re going to frac our first well after breakup.” The company also has land up in the Montney play area of British Columbia. Painted Pony is sitting on 12 to 30 Tcf of gas, of which he said six to 12 Tcf are recoverable. “One Tcf is worth one to two billion dollars,” he added. “LNG (liquefied natural gas) markets in Asia are dying for gas from North America. B.C. LNG plants are game changers,” Ward said, adding that their land is in line-of-sight to the ocean. “We could be one of the first companies to export LNG out of Canada,” Ward said. “As long as you keep working at it, things come around,” Ward concluded.

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PIPELINE NEWS June 2012

Cenovus will ship more crude-by-rail

Cenovus plans on shipping more of its crude oil by rail. These tankers located in Estevan have been used for that purpose. The company is looking at shipping crude by rail in Alberta. File photos

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Calgary – Cenovus Energy Inc. continues to shift its focus from natural gas to oil production. The company continues to execute a drilling program to take advantage of tight oil opportunities and has seen incremental production from these assets of about 2,300 bpd in the ďŹ rst quarter. The Weyburn operation produced nearly 17,000 bpd net in the ďŹ rst quarter, which is consistent with volumes over the same period a year earlier. Lower Shaunavon output averaged approximately 4,100 bpd in the ďŹ rst quarter, almost 1.5 times higher than the same period a year earlier. Cenovus has 87 horizontal wells and one vertical well producing in Lower Shaunavon. The company's Bakken operation had average oil production of more than 2,700 bpd in the quarter, including royalty interest volumes. Cenovus was operating 29 wells in the Bakken area at the end of the ďŹ rst quarter. Cenovus plans to transport additional crude oil by rail in the next few months, up to a maximum of 5,000 bpd by year end. The company has moved about 2,000 bpd of oil from the area by rail and is looking for additional rail movements from Alberta, said Don Swystun, executive vicepresident of reďŹ ning, marketing, transportation and development. The company is also assessing the possibility of converting its cars that carry diluent to Kitimat, British Columbia, so they can carry crude, he added.

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PIPELINE NEWS June 2012

B13

Building shops, ofÀces and homes for the oilpatch By Brian Zinchuk Weyburn – As Weyburn’s oil industry grows, there’s an increasing need for shops, offices and homes. That need is in part being filled by DSI Contracting. DSI is a family-owned and operated outfit. Darcy Iversen is a carpenter who has been in the business for 35 years. His wife Sandy works parttime for the business when she’s not working as an insurance broker. Their son Justin, who is a carpenter as well, is now taking a more prominent management role, and will eventually take over the business. The company has grown enough in recent years that they’ve even had to build a new shop for themselves, just across the highway from the Ramada Hotel. The new shop, which went up this spring, is 6,000 square-feet. “We’re looking to lease out the back end, then build another building and take over,” said Justin. The company also has some land in the Ebel Road industrial park, where they are looking to build to suit. “Our biggest stress is finding employees. It’s a good problem to have because it means you’re busy,” he said. “Years ago, we used to be a majority of residential. Now it is turned around and the majority is commercial.” Indeed, it has been a continual evolution for the business, which celebrates its 35th anniversary this year. “We’ve shifted with the times,” Darcy said. “I used to farm and do carpentry in the winter.” At the time, they farmed near Ogema, 80 kilometres west of Weyburn. That was the location of the business until eight years ago, when the allure of growing the business in Weyburn necessitated a move to the larger centre. Back in 1976, Darcy graduated from Ogema High School and took pre-employment carpentry in Moose Jaw. “A local lady asked me to build her a house. I quit my job in Weyburn to build this house,” Darcy said. His own father had also been a carpenter during the winters, but didn’t have a formal carpentry business. “His business was farming,” Darcy said. They took over the family farm in 1985. “When we moved to the farm, I started to specialize in cabinets,” he said. Sandy noted, “It grew into renovations and got bigger and bigger. “One fall, during harvest, I had a set of blueprints, a calculator and cellphone in the combine,” Darcy said.

ɸ Page B14

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PIPELINE NEWS June 2012

Leased buildings and homes in the works ɺ Page B13 Sandy said, “By this time, it had grown to commercial and residential. Our last harvest was ’98. We had to make a decision, which to do?” They rented out the 17 quarters of land and focused on carpentry. “We decided to shut down the farm and had an auction sale. We did carpentry fulltime.” A lot of their work was at Radville, where they built the TWC Financial Corp.’s offices and an number of houses. In 1999, Darcy was on the committee seeking to bring hog barns to Ogema. He ended up being project manager on that $30 million initiative which took two years to complete. It was at this time Justin started to become active in the company. He came on-board in 2003, and apprenticed through SIAST. It took three years to get his journeyman papers. In 2005 they started working in Weyburn. “We were asked to build a house, and we haven’t looked back since,” Darcy said. “I lived in my camper, drove, and lived with my niece and nephew.” Eventually Sandy moved into Weyburn as well. ɸ Page B15

Brian Pederson, leŌ, and Ivo Kohans of DSI ContracƟng install concrete forms for winter plug ins.

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B15

From leŌ, Sandy, Darcy and JusƟn Iversen make up the ownership of DSI ContracƟng in Weyburn. DSI Contracting built this oĸce building, now home to a local oil company.

Word of mouth goes a long way ɺ Page B14 At the time, most of the work was residential, with some commercial and farm shops thrown in. Justin said, “Then we got into higher-end custom-built homes.” “We did a lot of work in the northeast (of Weyburn), and a couple of acreage house,” Sandy said. Often a sign on the worksite was enough to bring on inquiries for future work. Word of mouth and reputation went a long way. The company would get into spec homes, producing turnkey showhomes. Many of their homes would end up being purchased by people in the oilpatch. A few years ago they did a condo project, as well as two expands for Carson Energy Services at Halbrite. Then they started to see a shift to commercial work, much of it on Ebel Road, a paved industrial park developed on the east side of Weyburn. The projects last year included a truck wash and Apex’s new building. They also did four houses. Now they are wrapping up an office building for Openfield Energy and another client. Openfield moved in earlier this year. Weyburn experienced a shortage of lots recently, but that has been resolved now, with a new developer working on the old Souris Valley Hospital site, as well as new city lots. The hospital grounds, known as “Riverwood,” looks like five years of work for them, Sandy said. Unlike most housing developments which are done on bare land, this is going into a well-treed area. The intention is to leave as many trees as possible. “We’ve got two spec homes on the go right now,” Darcy said. In the meantime, Darcy said they are looking at getting into building and leasing out buildings. The demand is largely from the oilfield. When they built their own shop, people were soon asking about it. The company now has 10 people working for it, and a need for more. “We need experienced guys. If we could find two more journeymen, we’d have two more crews,” Justin said. “We’ve lost some good guys to the oilpatch, but we’ve got some back. ”

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PIPELINE NEWS June 2012

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PIPELINE NEWS June 2012

B17

Pilot car lobby honks for standard training Saskatoon – The days of piloting oversized loads and vehicles by the seat of your pants without standardized training may be numbered in Western Canada. Heather Murray, owner of Sparrow Piloting Service Ltd. in Saskatoon, formed the Saskatchewan Pilot Vehicle Association last September to lobby for standardized training for pilot cars drivers. “One of our things is, we are trying to get some standardized training for pilot cars across Western Canada, and eventually across Canada with a certiďŹ cation process,â€? she said. “Companies will know that when they get pilot cars that have taken this course that they are getting pilot cars that all have the same kind and standard of training.â€? The Saskatchewan association is in the process of becoming a subdivision of the larger Western Canada Pilot Car Association formed in Alberta in January. “The reaction has been fairly good,â€? said Murray. “In Saskatchewan, we don’t have a lot of members yet which is why we are going to be collaborating with the Alberta one which has already has Alberta and northern B.C. representation. “We had Yukon rep come down the other day – southern B.C., and I believe a rep from the Territories. “A couple of Manitoba pilots are interested and I even have an Ontario pilot car interested in joining us. The Alberta piloting association was formed shortly after a female pilot car operator was killed in northern Alberta. “They were doing a big move at Anzac on Highway 881 and she was killed by a drunk driver,â€?

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said Murray. Larry Harland, the mayor of Paradise Hill drives his own Novlan Ford “We want more training and F-150 pilot truck to help transport New Holland and VersaĆ&#x;le farm standardized regulations. A lot of machinery sold by the local dealership. A new Saskatchewan Pilot people think all you do is get beVehicle AssociaĆ&#x;on has joined forces with the even newer Western hind the wheel and drive, but there Canada Pilot Car AssociaĆ&#x;on in Alberta with an aim to lobby for is whole lot more to it than that. standardized training for pilot drivers and operators in Canada. “We are going to be working with the Alberta Motor Transport Association to try to get a public service spot out that would air on TV on exactly what pilot vehicles are and what they do.â€? Murray is also a member of a federal government Task Force on Vehicle Weights and Dimensions. “I kind of loosely represent pilot cars across the country. I do a presentation every year to the task force on pilot cars,â€? she said. Murray is an advocate for standards, training and harmonization of regulations aecting drivers and vehicles that escort over dimensional loads. B.C., Alberta and Saskatchewan harmonized some pilot car rules in the landmark New West Partnership Trade Agreement in 2011. The rules are aimed at standardizing truck weights and dimensions regulations in the three provinces. “They standardized a bunch of stu for pilot cars such as sign type, type size and some equipment, but one thing we are lacking the routing. is standardized training,â€? said Murray. She has published a book called Canada GenAt Sparrow Piloting, Murray does everything eral Oversize Regulations and Pilot Car Directory from the books and dispatching, to driving and to make it easier for pilot cars operators across the training of her sta. country to reference regulations before they apply “We pilot heavy oilďŹ eld equipment and farm for a permit. equipment. In the past, I have done houses.â€? The book is now in its fourth edition and can Murray said pilot cars need a provincial permit be purchased for $15 by contacting Murray at Sparand sometimes a municipal permit depending on row Piloting in Saskatoon. “This is only comprehensive book available in Canada. It’s patterned after the U.S. one,â€? she said, noting it has similar content and layout. The American version is called United States Truckers Regulations on: Oversize Loads & Pilot Car Directory. Both books cover everything from truck overdimensional permit limitations and truck signage, ags, and lights, to permissible travel times and pertinent contact addresses and phone numbers. “If pilot car operators have questions, then they can ask the permit oďŹƒce speciďŹ cally what they need if it’s not totally clear,â€? said Murray. “A lot of times when we do bidding on jobs, the permit oďŹƒce doesn’t like to give you the informaPhone: 306-453-2700 tion until you actually have a permit,â€? said Murray. “A lot of times you need that information Fax: 306-453-2701 months in advance in order to do a pricing for a Redvers & Esterhazy locations opening soon. job.â€?

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PIPELINE NEWS June 2012

PIPELINE NEWS June 2012

B19

Twila Walkeden, leĹŒ, of Cenovus, presents a $25,000 cheque to Tamie Bieber and Colleen ScharnaĆŠa of the Midale Central School community council. The money went to the purchase of seven SMART Boards. Behind them are the Regina Symphony Orchestra Chamber Players, whose visit to the school was also paid for by Cenovus.

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In the centre of the gym, the Regina Symphony Orchestra Chamber Players ÄŽlled the room with beauĆ&#x;ful music.

Midale students enjoy RSO Chamber Players thanks to Cenovus „ Story and photos by Brian Zinchuk Midale – Each year the Regina Symphony Orchestra Chamber Players do a number of performances in smaller communities as part of their Music on the Road program. On April 25, the RSO Chamber Players came to Midale Central School, thanks to a sponsorship by Cenovus. “We like to bring this type of musical education opportunity to rural students that might not have the opportunity to oer it to their students,â€? said Twila Walkeden, spokesperson for Cenovus. “This is our third year we’ve done this.â€? The Weyburn Comprehensive School, Weyburn Junior High and St. Michael’s School in Weyburn were previous beneďŹ ciaries. A public performance took place that evening at the T.C. Douglas

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Centre in Weyburn. In addition to sponsoring the chamber players, Cenovus also donated $25,000 to Midale Central School. That allowed the school to equip all the remaining classrooms with SMART Boards. Seven were purchased, adding to the three permanent units and one portable unit the school already had. “It allowed us to equip every classroom in our school with a SMART Board and projector,� said vice-principal Jo-Anne Lee. “We’re very appreciative to Cenovus for the donation.� Susanne Hamilton, director of development for the Regina Symphony Orchestra said with their Music on the Road program, they try to reach six to ten locations in southern Saskatchewan. This year they went to Moose Jaw, Gravelbourg, Indian Head, Melville and Piapot First Nation.

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PIPELINE NEWS June 2012

50 trucks targeted for cancer convoy

Tom Jack, who drives this lead truck in Tony’s Convoy for Hope, hopes 50 oilĎeld and industry trucks will register online for this year’s cancer fundraiser on July 21.

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Vermilion – Hope and tears will be the order of the day for truckers and supporters honking horns in the third annual Tony’s Convoy for Hope cancer fundraiser July 21. Organizer Tom Jack, also known as Trucker Tom, expects this year’s convoy ride from Vermilion to Lloydminster along Highway 16 will a special one as he remembers is brother-in-law, Toni Rossi, who inspired the cause. Rossi died in Toronto from cancer in shortly after the initial Convoy for a Cure in 2010 that was renamed in his honour. “It’s going to be pretty emotional this year,� he said. “Toni’s wife, Pat, who is my sister and her daughter Sherri and my mother – they are all coming out this year for the convoy from Toronto. Pat is a breast cancer survivor. “The only one who can’t make the trip is Toni’s son Toni Jr., my nephew,� said Jack. “The convoy seems to spread far and wide. We also have an uncle and an aunt coming all the way from Scotland. The Convoy for Hope raised more than

$49,000 in its ďŹ rst two years with all proceeds going to the Alberta Cancer Foundation in support of the Cross Cancer Institute. Amber Williams, a fundraising event specialist from the Alberta Cancer Foundation will be on hand to accept this year’s donation. Jack doesn’t have a fundraising total in mind for this year’s cancer drive, but he deďŹ nitely wants 50 trucks to register for the convoy. “I want to hit 50 trucks – that’s what we’re trying to get,â€? he said. “Last year, we ended up with 28 trucks and we raised just over $29,000. Truckers can register to take part at the event website TonysConvoyForHope. com and receive a pledge sheet by e-mail to help raise funds. “Last year was the ďŹ rst year for truckers to collect pledges and that brought in an extra $9, 000,â€? said Jack. Prizes will be awarded to the top three best decorated trucks in the convoy. Jack says truckers are responsive to his call to take part because everyone has been touched by cancer or knows someone who died from cancer or is a cancer survivor. “Our convoy gives them an outlet to honour that person that day – someone who they have lost or who is the middle of their battle with cancer – or cancer survivors,â€? said Jack. “We’re just doing this and it gives everyone an outlet.â€? Jack, who hauls oil and water as a lease operator for W-K Truck-

ing in Mundare, said the event projects a positive message about the oilďŹ eld trucking industry. “It says people believe in what we do. We are out there all the time and something like this really pulls the trucking industry together,â€? he said. “I work in the oilpatch and a lot of the guys that come are in the oilpatch. “All through the year, we are competition with one another, but on July 21 we are all together pulling as one team. “It doesn’t what company name is on your truck. This is for a cause that everyone can pull together for and make a dierence.â€? The 2012 fundraiser kicked o April 13 at The Goat radio station in Lloydminster and will include the sale of event T-shirts and magnetic ribbons in support of the Convoy for Hope. Other sponsors including Action Towing and Recovery in Lloydminster, W-K Trucking, Simply Signs in Vegreville and Jack’s own Tom Jack Trucking in Vegreville are also helping to spread the word. “My biggest goal is to hit 50 trucks. That’s what we are trying to get – just advertising and get The Goat to push it on air –newspaper stories – any way to get the word out.â€? Action Towing, a company that enters its huge Tow Mater tow truck in the convoy, is a new sponsor this year and may take part in a hot dog fundraiser at Totem Building Supplies in Lloydminster prior to the convoy. ɸ Page B21

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PIPELINE NEWS June 2012

B21

Every year, Tony’s Convoy for Hope organizer Tom Jack decorates his red Western Star truck to lead oī the ride. This year, Jack is hoping for 50 trucks to take part in the convoy from the Vermilion Arena to the Lloydminster ExhibiƟon Grounds on July 21. File photo

ɺ Page B20 “They have always been the second truck in our convoy,” said Jack. “We asked them to come onboard as a sponsor and they said they didn’t even need to think about it. “I can’t thank our sponsors and volunteers enough.” Tibear Coaches in Lashburn will step up once again to sell seats for people to name either a cancer survivor or a member of their family who has died from cancer to be written on the windows of the bus. A second bus company yet to be named may follow Tibear’s memorial model. Jack’s red 2006 Western Star truck will head up the convoy that will leave the staging area at the Vermilion arena at 9:30 a.m. following a pancake breakfast to be served by Rotary Club volunteers from 7 to 9 a.m. This year’s convoy route will go through downtown Vermilion and travel past the industrial park before looping over the Highway 40 overpass to Highway 16 east. The last vehicle in the convoy will be a large pickup truck from Alberta Motor Transport Association with a sign to let motorists know they are following Tony’s Convoy for Hope. The convoy will arrive at the Lloydminster Exhibition Grounds at 11 a.m. for a live auction and family barbecue with sumo wrestling suits and a bounce castle for kids.

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John Buhnai, owner of AcƟon Towing which is located near Kitscoty, pinned a cancer ribbon on his shirt aŌer arriving in Vermilion for the start of the 2011 Tony’s Convoy for Hope in his Tow Mater tow truck. AcƟon Towing has stepped up as an event sponsor and will keep its second place posiƟon in the convoy. File Photo

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Dale WinnacoƩ, owner of Tibear Coaches in Lashburn, wrote the names of cancer survivors on the window of his bus last year with help from his sister, Helen Pierce, who spelled out the names from a memorial book. Tibear is seeking donaƟons from people who want the name of a loved one honoured or remembered during the 2012 Tony’s Convoy for Hope on July 21. File photo

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PIPELINE NEWS June 2012

Cross Roads

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Diaz drops anchor in heavy oil pools Calgary – Diaz Resources Ltd. is continuing to chart a course to expand its oil production through low risk development drilling in Lloydminster, Alberta and Macklin, Saskatchewan while natural gas prices languish. Diaz expects oil prices to hold above US$95 per barrel in 2012 with a realized heavy oil price of C$70 per barrel for the year to support continued development of their heavy oil projects at Lloydminster and Macklin. The Calgary-based oil and gas explorer drilled three Dina heavy oil wells at Macklin in the ďŹ rst quarter of 2012 with the ďŹ rst well producing 110 barrels of oil per day by mid-

March. Based on its geological and geophysical interpretation, the success of this key well has signiďŹ cantly expanded the Macklin Dina oil pool for the company. The well was drilled immediately to the north of the four currently producing Macklin oil wells, testing a section of mineral rights acquired by Diaz in late 2011. All of the new wells in the program were set to be producing oil by the end of the ďŹ rst quarter. Diaz’s strategy to focus on heavy oil production was reected in its ďŹ nancial report for 2011 with fourth quarter revenue derived from 80 per cent oil production, compared with

49 per cent oil production for the fourth quarter of 2010. The company’s total production for 2011 decreased 19 per cent to average 408 barrels of oil equivalent compared with the 2010 average of 505 boepd, but oil production increased 11 per cent to average 142 bpd for the year. In the fourth quarter of 2011, production increased to 431 boepd, including 225 bpd. Diaz expects oil prices to hold above US$95 per barrel in 2012, as world demand for oil continues to be strong. For the year ended Dec. 31, 2011, revenue decreased to $5.6 million compared with $6.5 million for the

prior year period. Diaz reported a loss of $17 million in 2011 mainly attributed to the write down of the carrying value of Diaz’s Canadian and United States natural gas properties. Capital expenditures for 2011 totalled $5.3 million compared with $4.4 million in the prior year. Those expenditures were ďŹ nanced primarily from working capital, disposition of non-core properties ($2.1 million) and the proceeds from an $8 million private placement ďŹ nancing. Diaz exited the year with net current debt of $1.7 million compared with $6.4 million at the beginning of the year. The company’s bank line was undrawn at the end of 2011.

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SIAST to break machinist training mould Lloydminster – The Saskatchewan Institute of Applied Science and Technology is taking a creative approach to easing the shortage of trained machinists in the province. Following a successful pilot program, SIAST plans to launch a 10-week program at its Wascana campus in Regina this fall to train

eligible employees for the machinist trade. Dumur Industries Inc. in Regina helped to sponsor a trial run of the program by funding the enrolment of two of their employees in a 10-week program to learn how to operate machines used in the trade. “The biggest issue is that employers can’t ďŹ nd

machinists right now,� said Grant Paul who heads the machine shop program at Wascana. “We don’t have enough students to supply industry, and industry demand is way exceeding what we could supply even if we were totally full. “So what we’ve done is set these 10week courses up so

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work and knows they have the right attitude. “It’s got excellent response, so it’s probably going to be a course that’s oered here in the fall.â€? Wascana currently provides a 34-week pre-employment certiďŹ cate course in machining with four years of apprenticeship training available from the Kelsey campus in Saskatoon. The 10-week course is the equivalent to a second year apprentice without the trade hours. Paul broke the news about the new industry sponsored program during an interview at the SIAST booth at the Try-a-Trade Career Expo in Lloydminster May 1-2. The course is so new it has yet to be named or listed on the SIAST fall calendar. “Most of those people we are targeting are people that can’t aord to go back to school,â€? said Paul. “They are kind of pigeonholed. Due to obligations – it could be family, house payments, car payments, etc. – they can’t aord to take 34 weeks o to go a pre-employment course.

“After they ďŹ nish the course, they go to work for a year to get their trade time, and then they come back to SIAST for their third level, return to work for another year and come back for the fourth level in Saskatoon,â€? said Paul. Wascana has also set up online training through HAAS Automation Inc., a company that manufactures CNC lathes. SIAST is a member of HAAS Technical Educational Centres and is targeting online training to high schools that lack a machine shop. “We’ve gone out and through industry support sponsoring theses programs, we now have courses that we monitor online,â€? said Paul. “After the students do their two week online course, we take our HAAS simulators out to the school. “We give students a lesson on programming. They program and simulate it, then we haul all the students to SIAST and they run the parts o our CNC machine. “We’ve had good success with that as well.â€?

PIPELINE NEWS June 2012

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PIPELINE NEWS June 2012

B25

No let-up in sight for oil sands hiring Calgary – The Alberta oilsands workforce is big and getting bigger along with the scope of mining and upgrading activities. The army of 20,000 workers employed by the industry in 2011 is expected to grow by more than 70 per cent by 2021 according to a recent labour report by the Petroleum Human Resources Council of Canada. The Petroleum HR Council report titled, Oil Sands Labour Market Outlook to 2021, states that some oil sands operations and occupations are forecast to more than double their current workforce by 2021. “The oil sands sector entered 2012 with a healthy dose of optimism, with all indicators – notably stable oil prices and strong international investment – pointing to continued expansion,� said Cheryl Knight, executive director and CEO of the Petroleum HR Council. “Demand for more workers is being driven primarily by growth in the sector; however our research tells us that the supply of skilled workers remains very tight. “Going forward, age-related attrition and competition from other industries will further escalate labour and skills shortages faced by the sector. “In fact, the sector may need to hire 116 per cent of its current employment levels due to industry expansion, retirements and turnover.� The Petroleum HR Council’s outlook provides oil sands labour demand

Drilling slow to take off Saskatchewan’s drilling eet has had a longer than usual spring breakup this year. The pace has been atter than other breakup periods in recent years, with essentially no activity. Usually work begins to pick up in the ďŹ rst two weeks in May, but until May 12, the province had just 10 of 119 rigs working. That’s way o the pace of the past two years, which saw roughly 70 rigs at work at the same time in 2010, and 40 at the same time in 2011. Things did start to pick up by May 14, however, when 25 of 121 rigs were reported working. The following day, that number climbed to 39 active rigs of a total of 127. Starting in mid-July last year, at the conclusion of the incredibly wet spring and summer, drilling took o in Saskatchewan, with the rig count running between 90 and 122 rigs for the latter half of the year. The ďŹ rst two and a half months of 2012 also saw over 100 drilling rigs working, at least until spring breakup.

projections and analysis based on data for 55 core occupations within three facility/operation types: in situ, mining and upgrading. The outlook describes how technological changes, as well as shifts in the regulatory and business environments, are impacting how the oilsands sector does business and what types of workers are required. Employment within in situ operations, for example, will experience the greatest growth, driving a number of emerging occupations and an increased reliance on the oil and gas support services workforce. Increased mining and upgrading activities will also contribute to the sector’s employment growth. Oil Sands Labour Market Outlook to 2021 also states industry will be challenged to manage workforce costs in this employee-driven labour market. The report concludes the oilsands sector will have to give considerable thought to eective and eďŹƒcient strategies to work with the construction, maintenance and oil and gas support services sectors, which are critical to the growth and sustainability of oilsands operations. The Petroleum HR Council report also notes that major capital projects for the sector are aecting the future workforce needs for oilsands operations. In addition to labour demand projections and analysis, the report contains a list of major projects expected to be operational by 2016 that will contribute to the sector’s workforce requirements. The report was funded by the government of Alberta and released March 30.

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PIPELINE NEWS June 2012

A pressurized nail gun is ÄŽred at normal sunglasses, with poor results.

The poor guy didn’t stand a chance with the nail gun and normal sunglasses. The nail is somewhere in the grey maƊer.

The circles in marker indicate where nails have bounced oÄŤ these Z87+ safety glasses.

Save your melon, and your eyes Estevan – When your audience jumps slightly when you make your point, you know you’ve got them. That was exactly what happened when Greg Schreiner lined up a pressurized nail gun at a mannequin head wearing glasses, and pulled the trigger. THWACK! The nail gun ďŹ red. CRACK! The glasses shattered, shedding shards of glass all around the inside of the plexiglass case. The audience was impressed. On May 8, the Saskatchewan Construction Safety Association put on several demos in front of Estevan’s Spectra Place as part of North American Occupational Safety and Health (NAOSH) week. The results could be

quite graphic. Three methods of fall protection were shown. The ďŹ rst had six dierent styles of railing systems. The second was a “wall walkerâ€? scaolding system that hung o the top of a wall in the process of framing. The third was a net, very much like what you would expect under circus performers. That brought participants to the more eye-catching displays – the eye protection and melon protection. Schreiner, who wielded the pass load nail gun, donned a hard hat with nails protruding from it, showing that a proper hard hat can greatly reduce damage compared to a bump cap. He pointed out to the observ-

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ers the dierence one little plus sign makes. Safety glasses will have a special code on them – Z87 or Z87+. The plus sign makes a huge dierence. It stands for high impact. Schreiner showed several examples of Z87 safety glasses which had three-inch nails penetrating two inches through the glasses, right into where an eyeball or brain might be. Then he showed scratch marks made by the same sort of nails ďŹ red at Z87+ eye protection. There was no penetration. He then progressed through a number of samples. Bump caps had several inches penetration – right into the grey matter. Conventional sunglasses were no match for the nail gun. The same went for prescription glasses. But the Z87+ safety glasses held up every time. Roger Berriault, Schreiner’s counterpart with the SCSA in the demonstration, pointed out safety glasses should even be worn under full-face shields. His point was conďŹ rmed by a sample face shield with numerous nails

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shot through it. The real splatter, however, came in the “save your melonâ€? display. They lined up a watermelon below an eightfoot tube, suspended from a step ladder. A hard hat was put on the melon. A set of pliers was then dropped through the tube, striking the top of the hardhat. No damage. Then the hardhat was removed, and the melon took it hard. Next a small pry bar was dropped. Again, no visible damage when the hardhat was placed on the fresh, second melon. Without the hard hat, the sharp end of the bar sliced into the melon, wedging itself upright into the side. The big test, however, was the 12-pound sledge hammer. With the hard hat, there was deďŹ nitely some damage to the third melon. But without it, the melon was split in two, spraying its red innards all over. The message was clear: don’t let your red innards be spread all over the worksite.

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PIPELINE NEWS June 2012

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Day of Mourning ASL Paving general manager, Kelly Adam, leĹŒ, Lloydminster Mayor JeÄŤ Mulligan, centre, and Lloydminster ConstrucĆ&#x;on AssociaĆ&#x;on president, Sheldon Servold lowered Ňags at City Hall during the Day of Mourning ceremony April 27 to remember Alberta and Saskatchewan workers who were killed or injured in the workplace. Photo by GeoÄŤ Lee

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B28

PIPELINE NEWS June 2012

Box 312 Carlyle, SK S0C 0R0 Office: 306.453.2506 Fax: 306.453.2508

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Setting new standards for performance Since it was established in late 2008, CanElson Drilling Inc. has grown quickly to become one of Canada’s premier drilling contractors. In addition to building its own drilling rigs, the company is expanding its Àeet of drilling and service rigs through acquisition. CanElson now operates a Àeet of 37 rigs (34 net). With operations in Western Canada, West Texas, North Dakota and Mexico, CanElson Drilling Inc. is setting new standards for rig utilization. With right-sized, purpose-built rigs built for horizontal and resource play drilling and experienced, well trained crews, the company is achieving new records for cost-effective, ef¿cient drilling operations.

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PIPELINE NEWS June 2012

B29

Keeps busy piloting wide loads Larry Harland, the mayor of Paradise Hill, retired two years ago when he worked as the service manager. He was oered a part-time sales job in retirement, but he opted for the freedom of serving as a pilot car driver for the Ford and New Holland dealership’s oversized farm machinery. We peppered a few questions at Harland about what the job is like as a retirement option. PN: What does a pilot driver do? Harland: When we are delivering oversize and over-dimension loads, the pilot truck goes with the truck driver who is moving the equipment and warns traďŹƒc. Here, a lot of the trucking we have to do is crossing a bridge, either the Maidstone bridge or the Deer Creek bridge. When you are moving these loads across the bridge, the pilot truck driver goes ahead and stops traďŹƒc so we can get across the bridge. PN: What kind of equipment are you piloting? Harland: Mostly it’s wide combines with dual wheels and wide pickups on them, and wing type air seeder equipment. Those combines and air seeders are all over-width. A lot of the tractors going out have triple wheels and they require piloting as well. PN: What kind of pilot car do you drive? Harland: I own my own pilot truck. I drive a Ford F-150 four-wheel drive that comes from the same dealership that I work for. It’s equipped with lights and two-way radios. You have to be able to communicate with the truck driver and the other pilot truck. I always carry some tools and some blocking and a jack, and that type of thing for emergency situations – if you have a at tire on the cultivator or something. PN: What are the main routes you travel and how often? Harland: Most of our trips are probably within a 100-kilometre radius. We have some trips that go to the other side of Saskatoon, north of Meadow Lake and north of Bonnyville. At this time of the year, it could be seven days a week until we get all the air seeders and that out, and all the farmers working, then it will be one or two days a week after that. ɸ Page B30

Oversize farm machinery sold at Novlan Bros. Sales in Paradise Hill requires a pilot car or two for safe delivery on highways and narrow farm roads. At this Ć&#x;me of the year, Larry Harland is piloĆ&#x;ng new equipment up to seven days a week in his “reĆ&#x;rementâ€? job.

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B30

PIPELINE NEWS June 2012

Everyday is different Éş Page B29 There have some trips where we leave at 4 a.m. or 5 a.m. to make a long trip to the other side of Saskatoon, but the majority of the trips are just day trips. Sometimes we do two or three trips a day. PN: Are you surprised by the volume of oilďŹ eld traďŹƒc in your travels? Harland: Highways 17 and 21 near Maidstone – there are certain times of the day we try to avoid because they are very busy with oilďŹ eld traďŹƒc. PN: How far head of the truck driver do you have to be? Harland: If you are climbing a hilly road where there is no visibility ahead, sometimes you will be as far ahead as three-quarters of a mile warning traďŹƒc that there’s a wide load coming that they can’t see – especially where there is lots of oil traďŹƒc and semis with loads coming. PN: How many pilot cars are required to move heavy farm machinery? Harland: It depends on the width of the equipment, the width of the highway and the time of day. Some of that is up to the discretion of the truck driver. He lets you know if we need one or two trucks. Moving these bigger air seeders on narrow rural roads, we almost always go with two pilot trucks. When two of us go, we usually take turns – behind one time and ahead the next. PN: Have you had any close calls stopping traďŹƒc on the road? Harland: So far, not yet. I hope it stays that way. It’s all about safety. When you get out of the truck and you have to stop traďŹƒc. You have your sign up and your lights are on and you have your reective vest so you are visible – and you have your stop signs and ags. For the most part when people see you out of the truck, they behave pretty good. PN: Do you ever run into road rage situations with other motorists? Harland: I have had a couple of incidents where I have been called a couple of good names, but for the most part people co-operate pretty good. PN: What are you most mindful of when traďŹƒc builds up behind the slow moving farm machinery? Harland: One of the biggest things when you are piloting is when you have people behind and you will have one driver that is very cautious and won’t pull out to pass – then you will have one or two behind him that will try to overtake a group of two or three vehicles. Then, about the time he is passing, the ďŹ rst one in the lineup will pull out.

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Larry Harland rests on the edge of this 18 ĹŒ. wide Flexi-Coil air seeder that requires a pilot car for safe delivery to the customer. He loves his part-Ć&#x;me reĆ&#x;rement job piloĆ&#x;ng over-dimensional farm machinery for a dealership in Paradise Hill.

I’ve seen some close calls there. It’s kind of out of your control, but it’s one of the higher risks things out there. You can pass when it’s safe to pass. PN: Is it a fun job for you in retirement? Harland: I like this because it’s dierent every day. You are hauling dierent equipment every day. You get to see dierent country every day. You meet lots of dierent people out at the farms. So far, I really enjoy it.

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PIPELINE NEWS June 2012

B31

Supplementing m menting g both the Drilling g and Production sectors off the th Oilfield Oilfi ld IIndustry. d t T Tanker k U Units, it Pressure Batch Trucks, and a Fully Equipped Service Truck are available. We specialize in transporting Salt Water, Crude Oil, Completions, Contaminated Mud & Fresh Water!

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B32

PIPELINE NEWS June 2012

Howell to re-energize Lakeland board Lloydminster – Lakeland College has re-energized its board of governors with the recent appointment of Darrel Howell to a three-year term. Howell originally served on the board in the 1990s and is pleased to be appointed again. “I regard education as a key building block to a successful life and a functioning society,” said Howell, who started his new term April 16. “I believe Lakeland College has a unique role to play in meeting the huge upcoming demand for well-educated and highly skilled people. I will try to do what I can to help.” Howell is currently chairman of the board at Tartan Canada Corporation. He has more than 30 years of senior management experience in the energy sector with companies such as Flint Energy Services, Husky Energy and Syncrude Canada. The scope of Howell’s management experience covers maintenance, construction, engineering and operations, as well as strategic planning implementation processes, internal and external communications, financial management, recruitment and retention strategies. He is also well versed in contract negotiations, and community and business relationship management. Howell’s appointment is in keeping with Lakeland’s recent development and expansion of courses targeting the petroleum sector. Energy, Entrepreneurship & Saskatchewan programming at the Lloydminster campus offers off-site and online power engineering courses, oil and gas training and a new two-year diploma option for its heavy oil operations technology program. Lakeland is also providing introductory

training for Aboriginal students at Onion Lake who may benefit from Howell’s energy background. “Darrel’s extensive experience, not only in the petroleum sector, but also in company management and governance, will be of significant value to the board and the college as we work to address all of the college’s cornerstone priority areas,” said Lakeland board chairman Milt Wakefield. Howell holds a bachelor’s degree and a master of science degree in mechanical engineering from the University of Alberta. He has also completed numerous courses in a variety of technical subjects, finance, maintenance, project management, native affairs, leadership and team building. Howell is a member of the Association of Professional Engineers, Geologists and Geophysicists of Alberta. He is actively involved with community and industry boards including the Lloydminster Regional Health Foundation and the Saskatchewan Chamber of Commerce. Howell previously served on the University of Calgary Senate, the Alberta Chamber of Resources, and the Construction Owners Association of Alberta.

Darrel Howell, chairman of Tartan Canada CorporaƟon, has been appointed to a three-year term on the Lakeland College Board of Governors. Photo submiƩed

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PIPELINE NEWS June 2012

B33

Greg Bender, parts manager at Denham Chrysler, was on hand at the Try-a-Trade Career Expo to accept resumes and provide informaƟon to up to 1,800 regional students regarding career paths and apprenƟceship opƟons in automoƟve trades. Denham also highlighted the new mandatory diesel exhaust Ňuid emissions technology coming to Dodge Ram heavy duty pickups with Cummins diesel engines in 2013. Photo by Geoī Lee

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Truck candy whets appetite for auto trades Lloydminster – A Dodge Ram 2500 or 3500 heavy duty pickup truck, a work vehicle of choice in agricultural and oilfield circles, could also be the perfect high school commuter for status seeking students. The latter function is what likely crossed the minds of some of the 1,800 high school students who rode a bus to this year’s Trya-Trade Career Expo at the Lloydminster Exhibition Grounds on May 2. Denham Chrysler deployed a fully loaded RAM 2500 HD with an open hood as eye candy to draw students to their booth with multiple purposes in mind, topped by the event theme of trades

and careers. “We just want the youth to know, and everybody else to know, the auto industry is a very good industry to start your career in. It can be very rewarding both personally and financially,” said Rod Ehalt the principal owner of the Lloydminster dealership. “We are out here for awareness more than anything.” An urgent ‘act now’ type of poster in the open hood drew attention to fact that time is running out to purchase a non-urea Cummins diesel engine while the supply lasts. Effective Jan. 1, 2013, all Ram HD pickup trucks will be equipped with the same

urea-based nitrogen oxide scrubbing technology that’s found in Ford, General Motors and Ram 4500/5500 commercial chassis cab trucks. “We are probably the last manufacturer to go to the urea,” said Ehalt. “The new green laws, as you might want to call them, forced us to put this urea on our trucks. It’s all about reducing emissions. ɸ Page B34

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B34

PIPELINE NEWS June 2012

Rod Ehalt, the principal owner of Denham Chrysler in Lloydminster, added some eye candy in the form of this RAM 2500 diesel truck to his company booth at the Trya-Trade Career Expo in Lloydminster May 1-2.

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Éş Page B33 “The urea is dumped into the exhaust system and takes out the particulates in the exhaust that create the environmental hazard.â€? The diesel exhaust uid technology, as it’s called, will hike sticker prices, but is not likely to lessen the demand for pickups in the near future. “It’s excellent right now. It’s probably the highest I’ve seen in my 30 some years of selling,â€? said Ehalt, who was owned the dealership for nearly 10 years and has seen a lot of changes in the industry. “The technology in the vehicles is unbelievable and the demand for new vehicles is also unbelievable. It’s come a long way,â€? he remarked. Denham sells and services a complete line of Dodge, Chrysler and Jeep cars and trucks, with gas and diesel engine trucks leading the way. “Especially where we live in the oilpatch with agriculture so good in the area, it’s a really good region for that,â€? said Ehalt. “Our 1500 half ton is very popular. In the patch itself, we do sell a lot of Cummins diesel Dodge 2500 and 3500 heavy duty trucks. “The demand is from individuals and companies. We do eet sales and we do a lot of retail.â€? Denham’s showing at the Try-a-Trade was also geared to meeting students face-to-face to explain various career options and apprenticeship programs in automotive trades. “We always need technicians. We do have an apprenticeship program in parts,â€? said Ehalt. “We have a quick service lube bay where we start people out if they want to become technicians and their work their way up through the apprentice program. “We are always looking for salespeople right up to management. Sta is always a question in this area and we are always looking for more. “We usually run around 50 sta members. We are pretty good right now.â€?

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PIPELINE NEWS June 2012

B35

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B36

PIPELINE NEWS June 2012

PIPELINE NEWS

C-SECTION June 2012

Longest standing Western Star dealer in North America Story and photos by Geoff Lee Lloydminster – First Truck Centre in Lloydminster is on a roll as the longest standing Western Star dealer in North America, marking 34 years of business in the heavy oil market in 2012. First Truck specializes in the sales and service of Western Star and Freightliner trucks used to haul oil, associated byproducts and supplies and for servicing oil and gas infrastructure. The secret to First Truck’s success through oil booms and busts is their business model of building lasting relationships with customers and body builders to generate repeat sales and service. “Customer relations is probably the biggest part of our business,” said Murray Grayson, general manager. “Our single goal is to make it easy for the customer to do business with us, whether it’s parts, service or sales. The easier it is for customers to do business with us, the stronger we will be together. “Selling the right truck for the right application is very important. The customer has to know what he wants as an end result. If we know that moving forward, we can build that product for him.” The current robust heavy oil market and economy make it that much easier to gain new customers for Western Star and Freightliner’s work trucks. “It’s been very strong throughout the oilpatch,” said Rick Hildebrand, sales manager. “Sales are very good. I don’t know if it’s a record breaking year, but we have seen an increase yearto-date over last year. ɸ Page C2 Sales manager Rick Hildebrand gets behind the wheel of a new Western Star truck ready for customer delivery.

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PIPELINE NEWS June 2012

Body jobs in demand ɺ Page C1 “The activity is leaning towards body jobs: pressure trucks, vac trucks, combination hydrovacs, flushbys, service rigs, pump trucks and steam trucks. The industry is geared toward service. “These are the types of trucks that are being rigged on our chassis. We have a handful of body builders who do the building. We supply the chassis to them.” Western Star tends to outsell Freightliner as an oilfield workhorse at First Truck because of its reliability and offroad durability. “It’s got the severe duty cab and it’s known in the industry to be heavy duty,” said Hildebrand. “Customers want it for the customization you can get from the factory, from frame strength to the biggest

radiators in the industry. “You can customize a Western Star to fit your needs. Truck models such as the powerful Twin Steer 4900 can be factory customized so a body builder can rig up a chassis into a functional service rig or a flushby for the customer. “We can have all of the holes in the frame pre-drilled in the factory, so when it gets to the body builder, they just drop it on, so the rig up is a lot shorter which saves them time and money,” said Hildebrand. “Most of our customers have a good idea of what they want. We work closely with the body builders. They tell us what they need from the back of the cab, so the trucks can haul legal loads safely.” First Truck works closely with Alberta

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Vac and Jasper Tank, companies that specialize in back end equipment that gets mounted on the back of Western Star oilfield trucks. “The body builders will take our chassis and build it up with the tanks, piping and the derrick – everything to make it operational as a flushby or whatever the customer is going to be using it for,” said Hildebrand. “The key is it has to be the right truck for the right job and the right chassis for the body builder, and the right tractor for the oil hauler. Then you should have a happy customer.” First Truck caters more to lease operators

than fleet owners in the Lloydminster marketplace which makes it easier for sales and service staff to respond to their needs. “With lease operators, you can deal with them one-on-one,” said Hildebrand. “Now you are actually a partner in their business. You get to know the individual, which helps us help him make the right decision, what he is going to be doing. “We like to be considered partners in their business, and with body builders, we build our specs to according to what the body builder wants. We keep it so the customer loves their

new truck.” First Truck can also save money for lease operators and small companies by steering them toward a new Western Star or Freightliner coupled with the latest Detroit Diesel or DD15 engine. The DD15 is a new design platform from 2010 that meets current EPA emission standards and is exclusive to Western Star and Freightliner trucks. “The biggest advantage we are seeing with the engine is fuel savings. On this new platform for 2010, they’ve increased their fuel mileage by five per cent,” said Hildebrand. ɸ Page C3

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Under the hood of this single tri-drive Western Star 4900 truck is a new DD15 fuel eĸcient engine that meets current EPA emissions standards. Customers can also choose a Cummins engine.

ɺ Page C2 “They also have urea tanks on them to meet the EPA emission regulations. The DD15 uses (a ratio of ) about two per cent urea to fuel consumption. We are finding other manufacturers are using far more urea, and that stuff is not cheap.” Hildebrand said the “smooth torquey power” of the DD15 is another advantage for customers seeking fuel economy, power and reliability from their engine. “The horsepower and torque curve – they use all of their 1,850 foot-pounds of torque in a flat curve from 900 to 1,400 rpm which is the sweet spot where everyone operates,” said Hildebrand. First Truck also offers customers a full line of optional Cummins engines. The Western Canadian market is covered by two First Truck Centre dealerships located in Edmonton and another one in Surrey, B.C. They all offer complete parts and service, new and used sales, onsite financing and state-ofthe-art body shop facilities. The B.C. location also sells and services Doepker trailers and E-One, and Thomas Built Bus product lines. Hildebrand says what makes today’s truck market so strong today in the Lloydminster area is the record pace of drilling from 2011 spilling over into 2012. “Sales are going very good; I wouldn’t say booming, because I am cautiously optimistic. Things are good,” he said. “The nice thing about Lloydminster is we don’t have the big sharp drops and spikes. “Everybody always seems to get through. But when we are busy that means our competitors are busy, which means the body builders that are in town are busy. Busy is good and competition is good.”

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PIPELINE NEWS June 2012

Two Keystone XL river crossings in the bag

TransCanada has completed some right-of-way construcƟon and two river crossings along the Canadian secƟon of the proposed Keystone XL pipeline. Full construcƟon is expected to begin in 2013 soon aŌer a presidenƟal permit is issued to build the line across the U.S./Canada border. The pipeline will run from Hardisty, Alberta and cross into Montana at Monchy, Saskatchewan, and on to Nebraska where it will connect to the main Keystone pipeline. Map submiƩed

By Geoff Lee Calgary – TransCanada Corporation has completed two major river crossings along the Canada route of the proposed Keystone XL oil pipeline from Hardisty, Alberta to Monchy, Saskatchewan where it will cross into Montana. The preliminary work is in being done is anticipation of a U.S. Presidential Permit in 2013 to approve construction of the pipeline from the Canada/U.S. border in Montana to Steele City, Nebraska. The Canadian portion of the complete 1,897-kilometre crude oil pipeline was approved in 2009. The work in Canada includes ongoing construction of the two million barrel Hardisty Terminal that TransCanada president Russ Girling touched on during a conference call regarding first quarter financial results and developments on April 27. “Primarily our construction activities have included some rightof-way work as well as some major river crossings – with long lead time constraints,” said Girling. “We have done two major river crossings; we’ve done a considerable amount of our tankage work at Hardisty. “The tanks are for the most part erected already. We will commence

the larger scale construction once we have the XL permit. The pipe is essentially along the right of way, and we are ready to commence that activity.” TransCanada also held an open season in March to invite bidders for the Keystone-Hardisty Terminal in Alberta. The open season concluded March 22. Girling noted the Hardisty Terminal will provide new infrastructure for Western Canadian producers enabling them to to access the Keystone pipeline system. “TransCanada is currently reviewing those open season results and we remain very optimistic that those results will turn into contracts,” he said. Girling also said he expects the Hardisty Terminal to be operational by late 2014 or early 2015 – the same deadline for the Keystone XL pipeline to be in service. TransCanada submitted a new presidential permit application on May 4 following the U.S. Department of State’s November 2011 notice to delay a decision on the permit until a new route is found to avoid the sensitive Sandhills area in Nebraska. The application is to build the pipeline from the U.S.-Canada border in Montana to Steele City, Nebraska. ɸ Page C5

PIPELINE NEWS June 2012 ɺ Page C4 “We will supplement that application with an alternative route in Nebraska as soon as that route is selected, said Girling. “The application will include the already reviewed route in Montana and South Dakota. The over three year environmental review of the Keystone completed last summer was the most comprehensive for a cross-border pipeline that we are aware of. “Based on that work, we would expect a cross-border permit should be processed expeditiously and that a decision should be made once the new route in Nebraska is determined,” said Girling. Legislation was passed in Nebraska in early April that allows TransCanada to re-engage with the state’s Department of Environmental Quality to determine an alternative route that avoids certain sensitive areas of the Sandhills. TransCanada has filed a report on alternative routing with Nebraska’s DEQ that Girling said would manage the process going forward with public input and determine the most appropriate route. “Once the route is identified and determined, Governor Dave Heineman will decide whether or not it’s appropriate, and at that point inform any federal agencies involved in the approval of the pipeline of his ultimate decision,” explained Girling. “If a presidential permit is granted next spring, we would expect the Keystone XL pipeline would be operational in late 2014 or early 2015. “The capital cost of that project is now estimated at $5.3 billion. That’s unchanged from what we estimated before. We have invested about $1.5 billion in that project as of March 31.” Despite the project delays with the cross-border permit, TransCanada is keeping Canadian communities and stakeholders in Alberta and Saskatchewan informed on the latest developments and activities. “We are in contact with all the parties that are related to our pipeline, whether that be utility right-of-ways or whatever else we need that affects those communities,” said Girling “We are in constant communication with all of our stakeholders, if you will, in terms of constructing. “Obviously, we would have liked to have been under full construction by now, so we’ve had to keep all of those people informed as to what our schedule looks like. “As we continue to revise our schedule, we update our information to them.” TransCanada is also working on obtaining the final permits it needs to start construction on the $2.3 billion Gulf Coast project that was originally to be the Cushing, Oklahoma, to Gulf Coast section of the Keystone XL.

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In February, TransCanada decided that section of the pipeline had its own independent value to the marketplace and would be constructed as a separate stand-alone project. Subject to regulatory approvals, the 780-kilometre, 36-inch crude oil Gulf Coast pipeline line is projected to be in service in mid-2013 to early 2014. Included in the cost is the 76-kilometre Keystone lateral pipeline that will transport oil to refineries in Houston, Texas. The Gulf Coast project will have the initial capacity to transport 700,000 barrels of oil per day and can be expanded to transport 830,000 barrels of oil per day. “As you are aware, U.S. crude production has been grown significantly in states such as Oklahoma, Texas, North Dakota and Montana,” said Girling. “Producers do not have access to enough pipeline capacity to move this production to the larger refining markets in the U.S. Gulf Coast. “The Gulf Coast project is meant to address that constraint and will also allow refineries to access lower priced domestic crude production and avoid paying the significant premium they are paying today for world priced oil from foreign producers.”

Back in 2009, crews from Monad Industrial Constructors Ltd. were hard at work on the inlet header for interconnecƟng lines to Ɵe in the main Keystone pipeline that was commissioned in November 2009. Today, TransCanada conƟnues to work on the construcƟon of two million-barrel crude oil storage tanks that will be used to ship Alberta crude to customers in North America on the main Keystone and the proposed Keystone XL pipelines. File photo

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PIPELINE NEWS June 2012

Thermal projects heat up Paradise Hill By Geoff Lee Paradise Hill – A new residential subdivision and a $3.3 million community hall top the list of projects for the Village of Paradise Hill, a community fuelled by major heavy oil projects in the area. Husky Energy is about to start construction just south of the village on a 3,500 barrel per day SAGD facility called Sandall as construction of a similar 3,500 bpd SAGD facility north of Paradise Hill draws to an end. Major employers such as Novlan Bros. Sales, a Ford and New Holland dealership; Paradise Oilfield Services and Hardy Excavating continue to grow along with the oilfield and agricultural activity in the area. “The oil and gas industry is what is making our community thrive right now. The traffic in town is mostly caused by oil and gas,” said Mayor Larry Harland. “The garages, the service stations and the restaurants and the hotel – they are all seeing the spinoff of the thermal projects that are happening here right now.” Paradise Hill is located on Highway 3, just 45 minutes north of Lloydminster which generates a lot of two-way traffic and interest from oilfield workers in relocating to the village. One resident who quit commuting to Lloydminster forever is John Kinzel. He and his wife Darlene won the $40 million Lotto Max jackpot last August and are retired for keeps in town. “It was very exciting for us. They stuck around so we were really happy to see that.

Paradise Hill Mayor Larry Harland points to the $700,000 mark the village has reached in a fundraising campaign for a new community hall that will double as an addiƟon to Paradise Hill School. The oĸcial corporate fundraising campaign will kick oī soon. The projected $3.3 million total cost with be parƟally shared by the regional school district.

They bought some properties in town,” said administrator Marion Hougham. The couple moved to Paradise Hill about four years ago adding to the population gain of 6.7 per cent from 483 in 2006 to 515 in the 2011 census. Further potential growth has been held back the last couple of years by the low inventory of rental property and new housing for sale. “A lot of oilpatch people come up here looking for accommodations,” said Harland. “At the moment, rental properties or properties for purchase – there is virtually zero vacancy. “Residential lots have been an issue with council for the last couple of years. It takes some time to get them set up and available, but we are well on the way now.” The village purchased a quarter section of land over a year ago and will start construction this fall on the first phase of 15 lots in the Trask subdivision at the west side of the village. One glitch to subdivision planning is the uncertain status of a nearby gas well currently owned by Reid Resources and the ownership of a pipeline running through the quarter section. “My understanding is the pipeline is still owned by the original owner of the well – Savant Energy,” said Harland. “It’s a low pressure gas line so the setbacks for houses are not as bad as if it were a high pressure line, but it still affects how you can design the lots. ɸ Page C8

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PIPELINE NEWS June 2012

Existing pipeline hampers Paradise Hill's expansion plans ɺ Page C6 “You can’t build over the lots. You have to have some clearances. It goes right through the prime level area of the quarter section and messes up quite a chunk of it.” Harland said they were hoping the well has a short life expectancy so they can plan and build on the lots that would be affected by the pipeline. “We really haven’t been to able to get anyone to commit on what the life expectancy on the well would be, so at the moment we are going to design around the pipeline,” said Harland. The village also is looking to expand its lagoon system in the future in order to expand the Trask subdivision beyond the initial 15 lots. Meanwhile, the village is getting ready to officially launch its corporate fundraising campaign for the planned community hall that will double as an addition to the Paradise Hill K-12 school. The project will include a gymnasium, commercial kitchen, meeting rooms, a pre-school day care and will house the Lakeland Regional Library. “To have a community hall that is just used by basic functions – dances and fowl suppers and that kind of thing, just doesn’t warrant the construction of a big building like that,” said Harland. “Building it jointly with the school division will increase the utilization of it and make the whole project more feasible. “We have got a commitment from the school division to put some capital funding into it.” The new fundraising kickoff will begin with the fundraising thermometer already at $700,000 since the project was announced in 2009. “One of the motions at the last community centre meeting was that everything is a go,” said Harland.

“Our plans are to move forward, and we hope to start construction by September 2013. We are getting our list and our pitch together and we will start knocking on doors pretty soon.” Fundraising can be fun in Paradise Hill with the likes of Canadian country singer Aaron Pritchett coming to town for this year’s Summer Bash at the local arena with proceeds going toward the hall project. “It’s worked out well. Sponsorship for the event is stepping up to the plate now, so the cost of production is going down, so our profit margin should be getting a little bigger each time,” said Harland. Visitors to the concert will also experience a newly renovated kitchen at the rink with all new equipment installed. With so much oilfield activity going on around Paradise Hill, Norwest Contracting built a new a plumbing and heating supply shop in 2011 across the street from their old location on Main Street. “Flint (Energy Services) did a lot of construction at the SAGD facility near Paradise Hill, and they actually set up an area right here in town where they housed equipment and held their safety meetings,” said Harland. “The major construction is done there, but I am hoping when they start building this Sandall plant that they will use Paradise Hill for their hub for construction.” Husky has already posted advertisements for a project lead to manage the engineering, procurement, fabrication, and construction of the new 3,500 bpd SAGD facility. Existing thermal properties east of Paradise Hill at Pikes Peak and Bolney/Celtic currently produce 20,000 bpd using SAGD and CSS technologies.

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PIPELINE NEWS June 2012

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Novlan pickups help drive the patch „ By Geo Lee Paradise Hill – Rough, tough and ready to work in the oil patch or the cabbage patch. That’s the general character of the popular Ford F-150 pickup truck and the type of customers buying them in record numbers from Novlan Bros. Sales in Paradise Hill. Heavy oilďŹ eld workers and area farmers are also buying droves of the Super Duty and Super Duty Chassis Cab Fords and New Holland and Versatile farm machinery in a strong oil and gas and agricultural environment. “The last couple of years have been record years. Sales have deďŹ nitely picked up,â€? said sales manager Randy Novlan who steers the family business with his brother, Doug. “Ford truck is doing very well. The F-150s have got all new engines and new powertrains and state-ofthe-art EcoBoost turbocharged V-6 engines that are giving us unbelievable power along with the best fuel economy in the industry. “The oilďŹ eld seems to like our F150s. They are durable and comfortable and eďŹƒcient.â€? Pipeline News ďŹ rst wrote about Novlan in 2009 when ďŹ nding buyers in a recession was their major hurdle.

“We were at the point where we were a little cautious, and now we can go the other way now,â€? said Novlan. “Trying to get enough product is the challenge right now. We’ve got a good outlook – things are going to be alright for awhile.â€? Novlan Bros. fronts Highway 3 at the turno to Paradise Hill which ďŹ nds itself in the centre of several thermal oil construction projects and related oilďŹ eld activities that bring business to town. “Our area is lucky to have a lot of new industry coming in around us with those SAGD projects going on,â€? said Novlan. “That has brought a lot of business to me – a lot of service business. The shop is very busy. “In this rural area – oilďŹ eld use and agricultural trucks – there’s a lot of service involved in that.â€? The huge Novlan Bros. 44,000 sq.-ft. complex includes 12 auto service bays, 14 heavy duty truck bays, 12 agriculture equipment bays and six bays for detailing. The Ford dealership also features a large showroom, a parts department and acres of new and used Ford cars, trucks and farm equipment in the yard. ɸ Page C10

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PIPELINE NEWS June 2012

Thermal projects could heat up sales

Novlan Bros. service manager Kevin Imhoī works on repairing an air condiƟoner on a Ford pickup. Imhoī is the great grandson of famed St. Walburg arƟst Count Berthold Von Imhoī.

ɺ Page C9 Sales and service of pickups will benefit from Husky Energy’s plans to start construction immediately on the new 3,500 barrel per day Sandall thermal oil project south of Paradise Hill that will bring more workers into the area. The start-up of two other nearby new thermal projects in 2012 at Pikes Peak South and Paradise Hill is expected to increase Husky’s heavy oil production to 30,000 bpd by 2013 and kick the local economy into overdrive. Area farmers who work in the oilfield seasonally are also in a buying mood for New Holland and Versatile farm machinery in Paradise Hill. Customers can drive to the new Novlan Bros. outlet in Lloydminster to purchase or service Kubota farm machinery or to service their heavy duty trucks. Novlan Bros. services a large area around Paradise Hill targeting all sectors of the economy in a truck-based region. “We’ve got a good spread of different economies driving our industry,” said Novlan. “The price of grain has been up for the last few years, so the farming industry is getting rewarded a little better than they used to be in the past, so that sure helps in our business.” The downside of the boom is attracting and retaining skilled labour in a competitive market. “Staffing is a challenge. The oilfield is going strong and they like to target us,” said Novlan. “We are losing a mechanic next week. He’s going off to an oilfield job. They are paying good money up in a camp.” ɸ Page C11

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PIPELINE NEWS June 2012 “What we try to accomplish is when we find a new customer, we try to keep him for life,” said Novlan. “We are in an area without a large population. If you lose a guy, it’s not as easy to pick up another customer as you would in a big city. “Customer service is huge – you’ve got to treat them right for repeat business.” Novlan Bros. has three full-time auto and truck sale consultants who are selling a lot of F-150s and the complete line of super duty trucks to that rough, tough, ready to work customer. “The 150s are our biggest sales right now. The Super Duty has always been good. We used to sell more Super Duty than the 150s, but that’s kind of reversed a little bit now,” said Novlan. “They are like a car – very comfortable, quiet

Randy Novlan and his daughter, Nicole, report they are selling a lot of the popular F-150 series of trucks along with Super Duty Chassis Cab Fords thanks to large scale thermal oil construcƟon projects and strong farming environment in the Paradise Hill area.

ɺ Page C10 Novlan Bros. has had good success, however, recruiting and retaining workers from overseas with the promise of competitive wages and a good environment in which to work. “If the guys like working for us, they will stick around,” said Novlan. “We had a number of Filipinos who have worked for us for a number of years now and they’ve worked out really well. “I was just in Ireland with the Saskatchewan group and I’ve got a couple of hopefuls coming out of there maybe. I went over there looking for guys who would want to settle down in rural Saskatchewan.” Novlan Bros. has been in business since 1929 and owes its success during booms and busts to effective customer relations.

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with all the navigation and modern technology. “The mileage is great on our new engines. We are really happy with the quality of the truck. It’s durable and it stands up in this country.” “The new 3.5 L EcoBoost has been a real hit for us. It came out in 2011. It’s a V-6 engine which will give you the economy of a V-6.” The EcoBoost is designed to deliver instant low-end torque and virtually no turbo lag. “They have duel turbo chargers on it, so if you need more power, the turbo chargers kick in and give you extra horsepower,” said Novlan. “You can get the best of both worlds with the fuel economy of a V-6 and the power of a big V-8. “That technology is what Ford is concentrating on right now – getting better fuel economy in all their lines and not losing the horsepower.”

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PIPELINE NEWS June 2012

Young sponges soak up Try-a-Trade Stephanie Brown from Dewberry School checks out the shooƟng level demo that Lakeland College steamĮƩer/pipeĮƩer students helped to run at the Try-a-Trade Career Expo in Lloydminster.

By Geoff Lee Lloydminster – Stay in the west young man and woman. Saskatchewan and Alberta have become the land of opportunity for young people pursuing careers in the trades. Opportunity in the trades was the overarching theme of the third annual bi-provincial Try-a-Trade Career Expo held at the Lloydminster Exhibition Grounds May 1-2. More than 1,800 students from both provinces came to experience a variety of trade demos and exhibits and ponder a pot of opportunities and apprenticeships that lead to careers to 51 available trades. “In the province of Saskatchewan, it seems that every trade has a huge demand,” said Paul Blankestijn, youth apprenticeship manager for the Saskatchewan Apprenticeship and Trade Certification Commission. “We’re seeing a lot of retirements. We are also seeing construction projects and the demand from employers has never been greater. “A young person graduating from high school in 2012 to 2014 is going to set themselves up for amazing career if they decide to work in the trades. “Opportunity is everywhere. If they just put their mind to it and decide what they want to do.” There are 47 designated trades in Saskatchewan, ranging from automotive service technician and pipeline equipment operator, to rig technician and welder. Driven by the booming oil and gas industry, Alberta is also flush with opportunities in all trades. The Alberta oilsands industry alone is expected to grow its workforce by 73 per cent by 2012 according to a new labor market report by the Petroleum Human Resources Council of Canada. “It’s not just the oilpatch – we are having an amazing shortage of trades in all sectors – virtually every trade you could name there is a critical shortage,” said Stan Bugiera, an apprenticeship consultant for Alberta Apprenticeship and Industry Training. Bugiera came to Try-a-Trade specifically hoping to interest young women in the trades to help meet the critical shortage of skilled labour in all industries. “We just want to show there is absolutely no reason that women cannot enjoy the same values and benefits and opportunities that guys do in the trades,” he said. ɸ Page C13

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PIPELINE NEWS June 2012 ɺ Page C12 The message was reiterated by a panel of six certified women journeypersons who fielded questions from women during two presentations in the cafeteria. Many high school girls also visited the Lakeland College booth where they got to talk about apprenticing in a trade with Sarah Attfield, who is completing her second year steamfitter-pipefitter class at the Vermilion campus. Attfield helped to run demos on how to shoot a level and answer the expected questions about her interest in trades. “It’s a nice way to be outside and enjoy the fresh air and pretty much show the boys how it’s done,” she said. “It’s not as hard as everyone says it is. You just have to be smarter than the tools. “When I first got into it, it was more of a just a part-time job, but I genuinely enjoy working with my hands and building things. I don’t know I may be a little bit of a weirdo for that. “I like to see the end product of things that I’ve built myself.” Try-a-Trade is organized by the Lloydminster Construction Association (LCA) who kicked off the opening night Career Expo with guest speaker Bryan Baeumler, the host of several HGTV shows. “Bryan Baeumler was very exciting last night. He gave everyone a very good message to trades being a career option and we were very excited to have him,” said LCA executive director Dorothy Carson. Planning for next year’s show is already underway and it could include an on-site build of a shed to show students how the trades work together. Due to low adult interest, the show will also revert to its original one day format with a combined career and trade show. That won’t stop companies and sponsors such as Cenovus Energy from recruiting new and future skilled labour for its energy projects including SAGD operations at Foster Creek and Christina Lake in the Cold Lake area. ɸ Page C14

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Team Cenovus sprang into acƟon to provide wheelchair student Alyssa Biberdorf from Holy Rosary High School in Lloydminster with a pen and calendar giŌ with teacher’s aide Ardelle Franks looking on. PresenƟng the giveaway is (leŌ) Pierre Sylvestre, an operaƟons trainer, with support from his booth partners.

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PIPELINE NEWS June 2012

Career expo answers students' questions ɺ Page C13 “We have a lot of postings on our website and we would encourage people to visit our careers page,” said Maureen Sander, a senior recruitment adviser for Cenovus who is based in Cold Lake. “We have a lot of expansion that is going on without our corporation and we are looking for people to fill a lot of different roles.” Sander said Cenovus’ goal at the Trya-Trade is to answer students’ questions about the courses they need to take in order to enter the careers that are available in the company. “We just think

it’s really valuable to become involved with students prior to them looking for work,” said Sander. “This is a really good venue where we have students coming from all across Alberta and Saskatchewan. They are going to gain very valuable experience here being able to try out a lot of different trade demonstrations.” Joe Gheran, human resources manager for JV Driver Projects Inc. in Nisku, was also excited about getting students interested in trades at an early age and eventually working for the company. JV Driver does civil, structural mechanical,

Electrical instructor ScoƩ PraƩ catches the aƩenƟon of these Bishop Lloyd School students with a demo of a 3D version of a magneƟc Įeld. More than 1,800 students toured the Try-a-Trade Career Expo at the Lloydminster ExhibiƟon Grounds.

piping, instrumentation, electrical project management and construction for oil and gas, energy, petrochemical, forestry, and mining sectors. “Like anybody, we are looking for extra people because we are like most big industrial contractors,” said Gherhan. “Everybody is go-

ing overseas for labour because there just aren’t enough people to do the job.” JV Driver has more than 2,000 employees and Gheran said there are plenty of opportunities for young people in their fabrication and industrial construction divisions. His mission at Try-a-Trade was to give

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students some knowledge of what a trade is and what is involved in doing the job. “Hopefully, I will help them choose a career somewhere related to construction,” he said. “Certainly, the construction industry has never really reached out to the high school level and I think we need to start that more and more, and letting the kids look at construction as an opportunity or trade for a career.” Metaltek Machining sent manger Jackson McGee to the event to interest young people in pursuing a trade as a machinist and arm them with information on apprenticeship training. “We’ve noticed lately that we are short of skilled people so we are looking to bring young people from the ground up,” said McGee. “The machinist program is the one that we are interested in,” said McGee. “It’s offered on the Alberta and the Saskatchewan side through SIAST or NAIT or SAIT. It’s a four year program. “There are two facets. There’s the manual side or the CNC side which is the computer numerical control.” CWC Well Services

staffed a booth with Lloydminster-based recruiter Krystyna Olchowecki whose message to young people was to get their driving licences. “It seems a lot of kids are waiting nowadays to get their licences,” said Olchowecki. “To be considered for a position on service rigs, you need to have not just your driver’s licence, but you have to have no restrictions on it.” Olchowecki said her goal for event was to also tell students about required safety tickets such as first aid and H2S to work for CWC and to answer questions about starting pay and benefits and types of positions available such as tool pushes currently needed in Provost. “Events like this get our company name out there,” said Olchowecki. “We just bought out Trinidad Well Servicing in June (2011) so we are a growing company. “We are just getting our name out there and creating some awareness of what we do and who we are and some positions that are available. “It’s nice to get our name out and plant the seeds, so if kids are not planning on doing the post-secondary route, we are an option for the future.”

PIPELINE NEWS June 2012

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Mack sales put Redhead on a roll

Glyn Dobson, Mack trucks sales rep at Redhead Equipment in Lloydminster, was originally hired as a heavy duty mechanic and uses that knowledge to spec Mack trucks for new and growing oilĮeld and agricultural customers in the area.

By Geoff Lee Lloydminster – Mack the Truck is back in town with a killer mDrive transmission that is helping to shift truck sales into overdrive at Redhead Equipment Ltd. in Lloydminster. The mDrive is designed and engineered to work exclusively with Mack MP series engines and is available on Mack highway tractors purchased by oil haulers and farmers in the area. “Sales are awesome. It’s been good and staying steady for well over a year now,” said Glyn Dobson, one of two Mack Truck sales reps at Redhead who covers the Saskatchewan market north of Highway 16. “It’s been a record year last year, and if we stay on pace this year, we should blow last year out of the water.” It’s not surprising that the Lloydminster dealership tops all six Redhead locations in Saskatchewan in the sale of trucks that heavy oil producers rely on to ship oils in lieu of pipelines. “It’s a beautiful place to be selling trucks,” said Dobson. “There are a lot of guys doing very well, and we get to tag along and help them, which I really enjoy.” Dobson is buoyed by the fact Mack Trucks recently sold 220 Pin-

nacle highway tractors to Westcan in Edmonton with all of the units equipped with an mDrive transmission. “They were that impressed with the savings, the durability and the ease for the driver,” said Dobson. The Mack mDrive has 12 forward and four reverse speeds, and is available in direct drive or overdrive which appeals to the lease oil hauler used to shifting gears. “I am selling to companies, but I am selling a lot to individuals,” said Dobson. “Our product is very economical, so for that guy starting out in business, it’s certainly a good business choice. “I see my guys starting off with a smaller Mack truck, then stepping up and going into three or four or five trucks.” Redhead sells and services the Vision, CH and CL series of Mack Trucks, which is a subsidiary of Volvo, including dump trucks, water trucks, vacuum concrete trucks and picker trucks. The most popular model in the Lloydminster market is the CH 613 Pinnacle, axle forward, with a 48-inch flat top bunk. ɸ Page C16

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'These guys are in tough conditions' Éş Page C15 “Guys have got somewhere to rest if they need it or put their snow suits in. It’s lightweight, tough – perfect for the oilpatch,â€? said Dobson. “In the oilpatch, the system that I put together, you can manually override the trans-

mission. “These guys are in tough conditions. I like to give those guys the control as well. “If they feel like they would like to use another gear or would like to hold a gear, the premium system I put in there allows them to operate it.

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“For the best part they can sit there, but if they want to get involved in it, absolutely they can.â€? Dobson plans to bring at least one mDrive Pinnacle to the Lloydminster Heavy Oil Show in September to help promote its features and beneďŹ ts.

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“It’s a Volvo transmission and it works exceptionally well. I actually think it’s going to be 80 to 90 per cent of my business,â€? said Dobson. “It’s a 12-speed automatic transmission. It’s very eective in the mud and the snow – best in class warranty – anyone can drive it. You don’t need to have the best driver behind the wheel to operate the truck as it needs to be operated. “It’s taken a lot of the stress and the strain out of the truck and the driveline in the frame. “It’s diďŹƒcult after 12 to 15 hours a day slopping in the mud to make that perfect shift every time. It’s a beautiful system,â€? he added. The mDrive comes with an optional Easy Shift feature that provides smooth shifting for liquid bulk, livestock and similar applications, where abrupt moves

need to be avoided. The Mack Truck to be at the heavy oil show may convince prospective buyers that Mack

Trucks no longer lack the creature comforts for drivers as they once did in older model years. ɸ Page C17

Redhead Equipment plans to expand its service shop and parts room this summer with a 90 by 200-ĹŒ. addiĆ&#x;on and conĆ&#x;nue to recruit new employees to keep up with the demand. Journeyman mechanic Alan Apo performs a predelivery inspecĆ&#x;on on this 2013 Mack CHU 613 truck.

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PIPELINE NEWS June 2012

Journeyman mechanic David Lake changes a fan belt on a Mack GU 813. Redhead is expanding its current 24-bay service shop and parts room as business steadily picks up it in all of its heavy equipment divisions in Lloydminster.

Éş Page C16 “We have come a long way since then. The show gives people a chance to take a fresh look at us,â€? said Dobson who believes his customers are the best promoters of the truck and its technology. “There’s no BS I guess. I have some good

customers using the product. They are more than willing to let me use them as references. I ďŹ nd that is one of my best and most eective tools.â€? There is a lot of positive chatter about the mDrive from customers on the bigmacktrucks.com website with site users backing up dealer claims that the under-the-hood technology in a Mack truck is outstanding. The Volvo engine exceeds EPA 2010 emission standards and features an SCR catalyst that reduces nitrogen oxide emissions in conjunction with a urea-based reducing agent. “One of the reasons it works so well is the fact that it is a Volvo system so it’s been in Europe for quite a few years before we even receive it,â€? said Dobson. “Everybody’s system works when you’re going down the highway. It’s when you’re shunting around from lease to lease – ours work fantastic in that situation which has really helped out sales.â€? Mack introduced the mDrive in the ďŹ rst quarter of 2010 and the Redhead service department hasn’t had a lot of repairs to make from early adapters in the Lloydminster market. “It’s really easy to service. We’ve had them out there now for just over a year and we don’t really have any issues with them,â€? said service manager Sterling Gaudaur. “For the most part, they are trouble-free. It’s a big seller in all applications. “They have the ability to hold gear, lug down and not spin tires – all those things people said that they couldn’t do that they do exceptionally well. We’ve got lots in the oilpatch now.â€? Redhead is planning to build a 90 by 200 ft. addition to its service shop and expand the parts department as business picks up in all of its heavy equipment divisions. Redhead has also recently begun to sell BWS EZ-2-Load trailers that are used by a variety of

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industrial sectors to move heavy equipment. “As a company, we are booming, especially in our truck division and in our agricultural division,â€? said Gaudaur. “We need more space to service our customers. You can’t service more customers eectively without having the space to service them in.â€? Redhead is also actively recruiting skilled labour for all of its locations. Company representatives joined a Saskatchewan government recruiting party to Ireland earlier in the year following other hiring trips overseas. “I bought my one technician last summer from England. We have two guys coming from England right now,â€? said Gauduar. Redhead actually recruited Dobson from Wales. He was a heavy duty mechanic several years ago before he moved into sales, but he keeps his licence up to date. “I’ve got a passion for the product and I’ve got a passion for ďŹ xing stu,â€? he said. “I actually spec the trucks for this area. I am constantly watching the vendor parts that we add. “Are we getting any premature failures? If we are, I will start to move vendor products around and make the best truck we can.â€?

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PIPELINE NEWS June 2012

PIPELINE NEWS June 2012

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Knuckleboom picker and Standard deck package arrangement at Full Tilt, Paccar PX 8 350 HP Engine, Allison 3000 Rugged Duty Series 6 speed automatic transmission, Dana Spicer 14.6K Front axle with taperleaf spring suspension, Dana Spicer 23K Rear axle with differential lock and Hendrickson HAS230L air suspension, Air brakes with ABS, 10 5/8� x 5/16� steel frame rails, 56 gallon fuel tank, Accuride Painted Black Rims with Goodyear front and rear tires, Aerodynamic sloped front hood, Pinnacle cab interior equipped with Kenworth Driver Information Center, A/C, Cruise, Tilt and Telescopic steer wheel, Power windows and door locks, AM/FM/CD radio, Daylite cab door design with peeper window, glove box, air suspension gauge, Dash switch and wiring for PTO done at factory, High back vinyl air suspension driver and passenger seats, Polished stainless steel heated mirrors with convex mirrors, curved glass windshield with stainless steel exterior sun visor, Dual halogen head lamps, switch and wiring installed at factory for beacon lights, circuit breaker style electrical system, Full truck air equipment install at end of frame

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PIPELINE NEWS June 2012

Whither the weather at June oilmen’s Lloydminster – Don Bertrand, one of the lead organizers of the 34th annual Lloydminster Oilmen’s Golf Tournament, hopes no umbrellas will be in sight during this year’s event from June 14 to 16. Bertrand is still traumatized by the cancellation of the final day of play in 2011 due to a flood of rain that turned

the 18-hole course at the Lloydminster Golf & Country Club into an unplayable water hazard. “That was the first time in our history we had to cancel the last day. It was just too wet on the golf course,” he recalled. “Before, when it was bad, we walked both days, but last year was the first time we ever

had to cancel altogether. “Last year was just impossible because parts of the course were totally under water. You don’t want to wreck the course, so we just decided to cancel it.” Bertrand has been a member of the organizing committee for at least 19 years and he can’t recall a year when weather in this part of the country wasn’t a facTroy Illingworth Cell: (780) 808-3183 Tim Sharp Cell: (780) 871-1276

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tor for golfers. “If you don’t like the weather, wait 10 minutes,” he joked. “Hopefully, it doesn’t pour rain like last year.” Despite last year’s washout, nobody demanded a refund, and all 256 spots were expected to be full before the May 25 cutoff with player interest stronger this year than 2011. “So far it’s been pretty good. Why, I am not sure?” said Bertrand, who went on to suggest the strong oilpatch has something to do with.” Sponsorships from the oil patch are also about on par with other years according to Bertrand.

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Sheldon Copeland from Avenger Oil Tools will be remembered for his fashion, if not his driving technique, at the 2011 Lloydminster Oilmen’s Golf Tournament. File photo

“Most of the guys who are sponsors have been for several years. We get the odd new one now and again. Usually, they stay pretty steady,” he said. Bertrand, an outside sales rep for MRC Midfield in Lloydminster, plays in the tournament each year, but has low expectations of blowing anyone away with his play. He describes himself as “an average hacker just like most of them” who may tee off without having swung a club all year. “I’m happy when I break 100. I am going in cold,” he said. “I don’t think I will surprise anybody – but

you never know. I could get lucky or something.” The 36-hole tournament kicks off June 14 with a social at the Communiplex from 6 to 9 p.m. Flights 1 to 15 tee off at 7 a.m. and Flights 16 to 32 tee off at 1:30 p.m. on June 15. The tournament wraps up with the flight finals and the championship round on June 16. There will also be the usual $1 million hole-in-one challenge on the final day with oodles of hidden hole prizes, door prizes, draw prizes and sponsored refreshment holes throughout the tournament.

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Heavy oil show exhibit space sold early Lloydminster – The organization of the 2012 Lloydminster Heavy Oil Show to be held at the Lloydminster Exhibition Grounds Sept. 12-13 is shaping up to be a well oiled machine. With less than four months to go before the opening ceremonies on Sept. 11, the show is sold out of exhibitor space with a lengthy waiting list. “I forget how many people are on the waiting list but it’s huge,” said show chair Mike McIntosh, who works at Weatherford. “The strong economy always helps. We are doing a little more far reaching advertising too.” The official event web site at hlos.ca confirms what McIntosh confirmed in early May – guest speakers to be announced shortly. McIntosh says the Alberta election on April 23 made it impossible for any potential keynote speaker or invited politician from Alberta to confirm their attendance prematurely. That would certainly by the case for new Energy Minister Ken Hughes after the election defeat of former energy minister Ted Morton. McIntosh hopes to formally announce the keynote show speaker and the official list of the invited dignitaries to the media or as soon as the information is confirmed. This year’s show will include the usual indoor and outdoor exhibits, but in the comfort of the newly renovated Exhibition Grounds.

“The layout of the show will be pretty much identical to 2010 but probably the registration is going to move into the new foyer,” said McIntosh. “It will be the same size as 2010.” This year’s event is being held in conjunction with the Lloydminster Heavy Oil Technical Symposium that will take place in the Prairie Room at the Exhibition Grounds. The symposium is annual event organized by the Society of Petroleum Engineers with technical presentations pertaining to heavy oil that will are open to show-goers. The 2012 heavy oil show and the symposium won’t be in competition for hotel rooms with a major turnaround at the Lloydminster Husky Upgrader that took place during the 2010 show, but finding a bed still won’t be easy. “I’ve heard the hotels are sold out,” said McIntosh. “Most people who have done a lot of these know when the last show end, they book their book their room for the next show.” Jim Weber, president of Advantage Products Inc. from Calgary, used the 2010 heavy oil show to successfully launch his company’s TorqDrive 450/1000 progressive cavity (PC) pump top drive motor. The 2012 show will take place at the Lloydminster ExhibiƟon Grounds Sept. 12-13. File Photo

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PIPELINE NEWS June 2012

Give trades a try, says HGTV host Lloydminster – The third annual Try-a-Trade Career Expo held at the Lloydminster Exhibition Grounds May 1-2 featured an opening night speech by celebrity television construction contractor Bryan Baeumler. Baeumler is the host of HGTV’s popular home building and renovation shows, Leave it to Bryan, Disaster DY1, and House of Bryan. He is also the owner of Bauemler Quality Construction in Oakville, Ont. Baeumler and his wife Sarah are currently building their family cottage from the ground up – documented in

the new HGTV series House of Bryan: On The Rocks. The project harkens back to Baeumler’s childhood summers spent working on his parents’ cottage. When he was just 14, he opened his own handyman business doing odd jobs for neighbours. Baeumler was glad to share his thoughts about career opportunities for young people in the trades during his one day visit to Lloydminster. ɸ Page C23

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PIPELINE NEWS June 2012 PN: I guess you don’t mind telling youth to get their hands dirty? Baeumler: Exactly, it’s ‘Do it.’ Look at the world right now and the state of the economy. There are so many businesses that are intangible. It’s moving paper from A to B. At the end of the day, the most honest day’s work is one when you break a little sweat – you get a great workout and you get paid. Every doctor, lawyer and politician – they all need a home built; they all need an oďŹƒce built – roads need to be paved. The Try-a-Trade event is amazing. There’s a lot of fun stu in there to try. The kids can come down and see it’s not what you think of the old days. The stigma attached to the trades is gone now. PN: Can you make a good living these days in the trades? Baeumler: I’ve got 23 and 24 year-old guys driving $50,000 to $60,000 trucks. They are the guys you see with the snowmobiles and the ATVs and the fun stu in the back. They’re heading o on the weekend having fun while some of their friends are still in the oďŹƒce pushing paper. PN: Do you see more women getting into the trades? Baeumler: Some of our best employees are female. They think a little more. They tend to be respectful of homeowners and they keep the guys in

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line. Some of our hardest working employees are women. They are there ďŹ rst and they’re there last (on the job) and they are the ones who will make the advancements. The trades are open to everyone. PN: How did you get invited to speak at the Career Expo on May 1? Baeumler: The Try-a-Trade committee – they contacted us and ask me to come out and say hello. We managed to squeak a day in the production schedule to get out here. I think talking with kids about getting into the trades is important right now. It’s something we need. It’s what really makes the economy turn. Buying and selling paper – it’s hard to eat that at the end of the day. PN: Do you do a lot of events for youth across Canada? Baeumler: I think it’s important. We are always looking for good employees. If I could go back to when I was 14 and talk to my friends, I would talk a lot more of them into getting into the trades. They are the perfect age to start building these skills and really build their own foundation for an amazing business and a great career and a fulďŹ lled career where they are going to make a great wage. PN: What is your next TV how going to be? Baeumler: I have no idea. I never know. I look forward to days when I can hide from the camera and just bang some nails in and get some work done.

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Éş Page C22 PN: What do you think of the oil industry out west? Baeumler: I lived in Vancouver for 10 years and spent a lot of time in Calgary and Edmonton. I love this area because I am a big fan of pickup trucks. There are pickup trucks everywhere. This is an area I think that feeds the country. This is an area that fuels the country. Kids growing up here have the perfect opportunity to be involved in something where they get hands-on skills. They live in an area that is really carrying a lot of this country. PN: What is your trade? Baeumler: I am a home builder, but I am ďŹ rst and foremost a carpenter. I also love tile setting – everything – electrical, we leave to the electricians along with gas ďŹ tting and HVAC, but all the other stu, I like to get my hands on. PN: What is your message to young people about getting into the trades? Baeumler: I’ve got a lot of messages for young people. They are at the age that they can learn a trade. One of the things I always tell high school students is when the Internet shuts down, they are going to need to know how to do something with their hands. Getting into the trades is a business now. I think there has been a stigma attached to it in the past. Now, being a tradesperson, you are in a business. You are doing the marketing; you’re doing the sales; you are actually doing the work – the accounting and the diplomacy when something goes wrong. There are so many dierent things involved in it – the math skills you need to have and the technologies that are coming out those kids are so great with. Every trade has these developing technologies that kids can get interested in and really get into it. PN: Is it true you were just 14 when you started your ďŹ rst business? Baeumler: A friend, Pat, and I started a little handyman company (Moon River Handymen). Growing up, I was always hands-on with my parents and I was lucky that way. I learned a lot of skills young. When we were 14, we started digging ditches and hauling away garbage and painting sheds and got up to re-facing decks and building sheds. It just went from there and it grew slowly, and it was a lot of fun for us. I look back to then and I have never really worked a day in my life since then. Ironically, Pat runs a construction company in B.C. We are both building homes now.

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PIPELINE NEWS June 2012

Heavy oil symposium in sync with oil show Lloydminster – For the first time in its history, the 2012 Heavy Oil Technical Symposium will be hosted by Lloydminster Heavy Oil Show with both events to run concurrently from Sept. 12 to 13. Operating the technical symposium in conjunction with the oil show should help to boost interest in the technical presentations the symposium traditionally delivers as a competing or stand-alone event. The 19th annual technical symposium run by the Lloydminster Society of Petroleum Engineers will convene at the Prairie Room of the Lloydminster Exhibition Grounds as a main event dur-

ing the heavy oil show. “It’s great for us because it gives us a lot more opportunity to get to the general public and people who may not attend a strictly technical symposium,” said SPE vice-chairman Mark Bacon who heads the symposium. “It’s a fantastic opportunity for us,” The close links between the two events this year is due to having SPE chairman Mike McIntosh serving a dual role as the volunteer chairman of the heavy oil show organized by the Lloydminster Oilfield Technical Society. “This year we are ‘bolted on’ to the heavy oil show,” said Bacon.

“That will allow us to take advantage of both crowds or areas of interest. We will get the technical people as well as the general public.” The heavy oil show, held every second year, is open to the public, and attracted more than 6,500 visitors in 2010. Interested visitors to this year’s show will be welcome to sit through two days of SPE technical presentations, which are yet to be finalized. “The deadline for submitting proposals is May 31, so we likely do the selection process in midJune. We won’t know exactly what the outline will be until then,” said Bacon. ɸ Page C27

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Ken Chong, general manager of Core Laboratories Canada Ltd. in Calgary, was presented with a giŌ from SPE chair Mike McIntosh following a presentaƟon at the 2011 Heavy Oil Technical Symposium in Lloydminster. This year’s deadline for presentaƟon abstracts was May 31. File photo

tion even though I am not technically in Lloydminster,” said Bacon. “It’s good. I will still be able to do both. Realistically, a lot of what SPE needs to be done is done through e-mail.” Bacon is organizing a networking event in Cold Lake on May 31 for young professionals in the Cold Lake and Bonnyville areas who may want to join the SPE. The event will be held at Original Joe’s in Cold Lake at 6:30 p.m. with guest speaker Shane Freeson, a professional engineer and director of the Cenovus Primrose site. Bacon will also take the opportunity to encourage young professionals to attend the heavy oil and symposium this fall in Lloydminster in the wake of last year’s inaugural Bonnyville & District Heavy Oil Show. “In Lloydminster, we have a big advantage. Everybody wants to throw a big heavy oil show but at least Lloydminster and Cold Lake have heavy oil,” said Bacon. “When we get a bunch of people together; it’s for people who are actually working in the field who have a lot more experience, so it doesn’t become an academic show – it becomes a practical show.”

ɺ Page C26 Symposium topics typically range from heavy oil innovation and production improvements to heavy oil case studies and field research or pilot projects. The SPE will schedule four speakers for morning and afternoon sessions during the two day show, with the heavy oil show organizers expected to provide a high profile lunch speaker to be named later. Bacon says the annual symposium is important to the industry and raises a lot of technical awareness of what is going on in the field along with future trends. “Hopefully, we will be able to get a few speakers on things that are particularly important to Lloyd like cold heavy oil production with sand (CHOPS) or may be some SAGD projects,” said Bacon. The technical presentations could include a topic by Champion Technologies in Calgary where Bacon manages thermal sales and service for customer accounts in the Cold Lake area. “We are still looking into it. We’ve got one or two that we could be doing, but I am checking around to see what else we have. There should be a few,” he said. Bacon transferred to from Lloydminster to Calgary in 2011 shortly after being elected to the SPE executive and will relocate again to Cold Lake in the coming months and commute to Lloyd when called upon. “The SPE has allowed me a little bit of leeway on being a chair of the sec-

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BP Alaska pilot tests CHOPS “We are trying to determine whether the rock quality and uid quality are appropriate for CHOPS and whether we can get foamy oil and a lot of sand production which indicates wormhole growth.â€? The production of sand creates a wormhole network and a foamy oil drive – two factors that inuence enhanced oil recovery. “The more sand you can make, the more wormholes and the better your production. That’s critical for us,â€? said Chmielowski. His project team is also challenged to economically sustain CHOPS as light oil production in the area continues to decline. Prudhoe Bay has produced 11 billion barrels of light oil since production began in 1977, with production in a steady decline since peaking in 1988. Chmielowski is part of a greater BP Alaska renewable eort to rejuvenate production, extend the life of the oilďŹ elds for another 50 years and advance heavy oil technology. There are 50 billion barrels of heavy oil in the Ugnu and West Sak/Schrader Blu formations overlying the Kuparuk River and Milne Point ďŹ elds. BP is investing $100 million in its heavy oil test facility for the Ugnu, where there are between 12 billion and 20 billion barrels of heavy oil. BP estimates that roughly 10 per cent or two billion barrels of that resource could be recovered. BP’s pilot project on at Milne Point includes two horizontal wells drilled in “upper endâ€? sands and two vertical perforated in the lower end sands of the formation. Heavy oil production on the North Slope from the ďŹ rst horizontal test began in April 2011 and was headline news in the media and the industry. That initial CHOPS well had a maximum net production of 550 barrels a day with a total production of 45,000 bpd in the ďŹ rst four months before being shut in due to a hole in the tubing. The desired foamy oil drive was established with pressure at 1,700 psi. Cold production is a pressure driven process, in which both heavy oil and sand are transported to the surface using a progressive cavity pump. The CHOPS oil produced included a sand cut of 12 to 15 per cent but without water – yet. “We don’t have any water. There is no water produced to date,â€? said Chmielowski. ɸ Page C29

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„ By Geo Lee Lloydminster – The North Slope of Alaska has become a familiar part of the Lloydminster heavy oil scene in recent months. BP Exploration Inc., based in Anchorage, is using cold heavy oil production with sand or CHOPS technology developed in Lloydminster to unlock heavy oil on the North Slope. The BP pilot includes two horizontal and two vertical wells drilled at their Milne Point oilďŹ eld to appraise the CHOPS potential of the Ugnu formation at a depth of 4,000 feet. Geophysicist Joe Chmielowski, who heads the BP Alaska heavy oil subsurface team, provided a project update to a large audience at the April SPE technical luncheon in Lloydminster. “The objective of the pilot is proving reservoir physics,â€? said Chmielowski.

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A nine member delegaĆ&#x;on from BP ExploraĆ&#x;on Inc. in Anchorage Alaska toured heavy oil operaĆ&#x;ons in the region in April. At the podium is Joe Chmielowski, leader of a BP Alaska heavy oil subsurface team. He delivered a presentaĆ&#x;on in Lloydminster on the experimental use of cold heavy oil producĆ&#x;on with sands or CHOPS by BP on the North Slope of Alaska. On the right is Eric West, manager of BP’s renewal team that is aimed at rejuvenaĆ&#x;ng producĆ&#x;on on the North Slope. There are 20 billion barrels of heavy oil in the Ugnu formaĆ&#x;on at BP’s Milne Point oilÄŽeld.

Éş Page C28 “We know it’s out there. There’s a big oil/water contact, but if we can keep our wells and wormholes away from that I think we will be in good shape.â€? A second horizontal well has been brought on production in recent weeks and will ramp up to 350 bpd and the shut-in well is ready to be turned on again. One of the vertical test wells was set to produce by the end of April. “Stay tuned and see how this turns out,â€? said Chmieslowski. “We have to produce these four wells and

determine if they are repeatable and if they are sustainable. “That’s a really important point we learned from Lloyd from all the CHOPS operators over the years. “That’s what we’ve got to prove to management.â€? The 650 bpd of gross production from the ďŹ rst horizontal compares favourably with typical Canadian SAGD well that produces 600 bopd and a Canadian CHOPS well at 100 bpd. Heavy oil at Milne Point has an API of 10 to 12 compared to Lloydminster heavy oil with an API range of eight to 14, but Chmielowski values

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viscosity more than API in Alaska. Heavy oil in Alaska is biodegraded by bacteria and lies close to permafrost all of which dictates CHOPS as the best method for oil recovery from the test area. “Mother Nature dictates what you can do,â€? said Chmielowski. Chmielowski was part of a nine member group of BP Alaska employees who arrived in Calgary on April 16 for the 20th Slugging it out Technical Conference sponsored by the SPE and the Canadian Heavy Oil Association. The next day, the group visited the BP Canada oďŹƒce in Calgary and began a three day tour of heavy oil operations in the Elk Point and Lloydminster regions under the guidance of Kirby Hayes who owns Kirby Hayes, Incorporated in Lloydminster. ɸ Page C30

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SPE execuƟve member Hart Golbeck, leŌ, presents a giŌ to guest speaker Joe Chmielowski at the April SPE technical lunch.

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ɺ Page C29 “They’ve hired me to tour them around the CHOPS areas,” said Hayes at the April 18 luncheon that was included in the tour. “Today, we are spending most of the day in town visiting various suppliers, shops and technology that’s been locally developed.” Jennifer Julian, a well intervention adviser for BP at Prudhoe Bay told the SPE lunch audience in December about her plans to adapt PC pump technology developed in Lloydminster for the Milne Point CHOPS wells. A surface drive PC pump was used in one of BP’s horizontal test wells at Milne Point to assess the potential for CHOPS production in the Ugnu reservoir. “Companies in Lloydminster have been willing to share their know-how and their experience over the years so it’s been extremely positive,” said Chmielowksi. “We borrowed most of the technology that the economy has developed here over the last three decades – anything from pumps, co-rods, mast units and just the know-how on how to produce CHOPS wells. “This is the cradle of CHOPS production, and nobody does it better in the world. “Lloyd has given us a starting place and we will be able to tailor the operations developed in Lloyd to Arctic conditions with the permafrost and our rock type and our fluid type.” Chmielowski referred to a Hayes quote in his talk, noting that drilling for heavy oil in Alaska is like working on a different planet due to higher costs, Arctic conditions, permafrost and deeper drilling targets. Environmental restraints in Alaska, he said, ban the use of direct fire heaters and venting of gas associated with the design of typical CHOPS wells in Canada.

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Paid technical and leadership training Career advancement opportunities Paid flights for rotational program (22/13) Seasonal work programs available

<ŽďŽůĚ ^ĞƌǀŝĐĞƐ /ŶĐ͘ ŚĂƐ ĂŶ ŝŵŵĞĚŝĂƚĞ ŽƉĞŶŝŶŐ ĨŽƌ ĂŶ ĞdžƉĞƌŝĞŶĐĞĚ ŽǁŶŚŽůĞ dŽŽů ŽŵƉůĞƚŝŽŶƐ dĞĐŚŶŝĐŝĂŶ ĨŽƌ ĨŝĞůĚ ǁŽƌŬ ŝŶ ͕ ^< ĂŶĚ D ͘ dŚŝƐ ƉŽƐŝƚŝŽŶ ǁŝůů ďĞ Ă ŵĂŝŶ ƉŽŝŶƚ ŽĨ ĐŽŶƚĂĐƚ ĨŽƌ <ŽďŽůĚ͛Ɛ ĐŽŵƉůĞƚŝŽŶƐ ƚŽŽů ƐĞƌǀŝĐĞƐ ŝŶ ƚŚĞ ĨŝĞůĚ͘

<ĞLJ ĐƚŝǀŝƚŝĞƐ͗ • ZĞƐƉŽŶƐŝďůĞ ĨŽƌ Ăůů ĂƐƉĞĐƚƐ ŽĨ ŽŶͲƐŝƚĞ ƚŽŽů ƐĞƌǀŝĐĞƐ ŝŶĐůƵĚŝŶŐ ŵŽďŝůŝnjĂƚŝŽŶ ŽƉĞƌĂƚŝŽŶƐ͕ ŵĂŝŶƚĞŶĂŶĐĞ͕ ũŽď ƌĞƉŽƌƚŝŶŐ͕ ĂŶĚ ƚŝĐŬĞƚŝŶŐ ũŽď ƚŽ ũŽď͖ • ĚĂƉƚŝŶŐ ƚŽŽů ĐŽŶĨŝŐƵƌĂƚŝŽŶƐ ƚŽ ƚŚĞ ĐůŝĞŶƚ͛Ɛ ŶĞĞĚƐ ƚŽ ĞŶƐƵƌĞ ƚŚĂƚ <ŽďŽůĚ͛Ɛ ƐĞƌǀŝĐĞ ĐŽŶƚƌŝďƵƚĞƐ ƉŽƐŝƚŝǀĞůLJ ƚŽ ƚŚĞ ƐƵĐĐĞƐƐ ŽĨ ƚŚĞ ĐůŝĞŶƚ͛Ɛ ĐŽŵƉůĞƚŝŽŶƐ ƉƌŽŐƌĂŵ͖ • DĂŝŶƚĂŝŶŝŶŐ ĐůŝĞŶƚ ƌĞůĂƚŝŽŶƐ ďLJ ŬĞĞƉŝŶŐ ƚŚĞŵ ŝŶĨŽƌŵĞĚ ĂŶĚ ĚĞĂůŝŶŐ ǁŝƚŚ ŽƉĞƌĂƚŝŽŶĂů ŝƐƐƵĞƐ ĂƐ ƚŚĞLJ ĂƌŝƐĞ͖ • /ĚĞŶƚŝĨLJŝŶŐ ĂƌĞĂƐ ĨŽƌ <ŽďŽůĚ ŽƉĞƌĂƚŝŽŶƐ ĂŶĚ ƚĞĐŚŶŽůŽŐLJ ŝŵƉƌŽǀĞŵĞŶƚƐ͖ • ƐƚĂďůŝƐŚŝŶŐ ŝŶĚƵƐƚƌLJ ĐŽŶƚĂĐƚƐ ĂŶĚ ƌĞƉƌĞƐĞŶƚŝŶŐ ĂŶĚ ƉƌŽŵŽƚŝŶŐ Ăůů ŽĨ <ŽďŽůĚ͛Ɛ ƐĞƌǀŝĐĞƐ ŝŶ ƚŚĞ ĨŝĞůĚ͖

We thank all applicants; however only those selected for an initial interview will be contacted.

How to apply: email: hr@canyontech.ca fax: (306) 637-3379 website: www.canyontech.ca

YƵĂůŝĨŝĐĂƚŝŽŶƐ͗ • ŵŝŶŝŵƵŵ ŽĨ ϯ LJĞĂƌ͛Ɛ ĞdžƉĞƌŝĞŶĐĞ ƌƵŶŶŝŶŐ ĚŽǁŶŚŽůĞ ĐŽŵƉůĞƚŝŽŶƐ ƚŽŽůƐ͘ • sĂůŝĚ ĨŝĞůĚ ƚŝĐŬĞƚƐ ŝŶĐů͘ t,D/^͕ ,Ϯ^ ĂŶĚ &ŝƌƐƚ ŝĚ͘ • ůĞĂŶ ĚƌŝǀŝŶŐ ƌĞĐŽƌĚ ĂŶĚ ǀĂůŝĚ ĚƌŝǀĞƌ͛Ɛ ůŝĐĞŶƐĞ͘ YƵĂůŝĨŝĞĚ ĂƉƉůŝĐĂŶƚƐ ĞŵĂŝů ƌĞƐƵŵĞƐ ƚŽ ĐŚƌŝƐďĂƵĚŝƐƚĞůΛŬŽďŽůĚŝŶĐ͘ĐŽŵ͘ &Žƌ ĨƵƌƚŚĞƌ ŝŶĨŽƌŵĂƚŝŽŶ͕ ĐŽŶƚĂĐƚ ƚŚĞ ĂďŽǀĞ Ăƚ ;ϰϬϯͿ ϰϳϮͲϬϬϵϵ

safety@jmlc.ca

We’re currently looking for: • Lease Construction Supervisor • Dozer Operator • Grader Operator • 1A Operators (Bed & Winch Truck / Picker Truck) • Crew Foreman (Facility / Pumpjack / Pipeline) • Labourers

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PIPELINE NEWS June 2012

CAREER Gu×de Permanent Full-Time Penta Completions requires a

Warehouse/Yard Assistant

Part Time OfÀce Position

for our Estevan operation. Duties Include • Shipping & Receiving • Inventory control • Invoicing • Some on call work is required

Requirements • Valid Class 5 drivers licence • Computer experience would be an asset • Successful candidate will earn a current WHMIS and TDG certiÀcate

Submit resume including references to: Penta Completions Supply & Services Ltd. 58 Devonian Street P.O. Box 667 Estevan, Sk. S4A 2A6 Fax: 1-306-634-6989 or Email: lhaukeness@pentarods.com

CONSTRUCTION LTD. EXCAVATING, SAND AND GRAVEL • REDI-MIX CONCRETE Glen Peterson Construction, SK leader in aggregate, trucking concrete construction and sewer and water installations, is growing. Immediate openings for:

• Located about 10 miles out of Lloydminster. • Experience in Quickbooks an asset, however, willing to train. • Duties include payroll, data entry & Miscellaneous ofÀce duties.

Please send resume to: Box 45 Lloydminster SK, S9V 0X9 or Fax: (780) 846-0005 Email: jobresumes@hotmail.ca

Journeymen Electricians and Apprentices

Experience: Safety Certificates are needed. 1st Aid/CPR, H2S. Applicants must have a valid driver’s license. Full benefits packages and RSP plan.

Technical Engineer: 2 years experience. Must be able to run lieca survey equipment. Full time. Wages depend on experience. Fax resume to 634-4643 or phone Tyler at 421-3474

Duties: Day to day electrical construction and maintenance in the oilfield.

Equipment Operator: Experience in operating loaders, hoes, dozers, and crusher a deÀnite plus. Must be dependable. Full time position. Wage depending on experience. Fax resume to 634-4643 or phone Tyler at 421-3474

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.

Concrete Foreman, 2 Openings: 2 years experience in all phases of concrete work. Wage depending on experience. Fax resume to 634-4643 or phone Sam at 421-1168

Glen Peterson Construction Ltd. is an equal opportunity employer dedicated to a safe, drug-free workplace. We offer excellent wages and beneÀts, plus overtime, incentives and bonus.

Glen Peterson Construction Ltd. 314 - 6th Street, Estevan, SK S4A-2V7 Ph: 306•634•2741 Fax: 306•634•4643

for our Estevan operation. Applicants should possess oil well operation knowledge, related industry service experience or technical certiÀcates and practical experience. You should possess good communication skills, organizational, problem-solving skills and be able to work in a team environment. Computer experience would be an asset. Duties to include dynamometer data collection, analysis, optimization, rod string design, sucker rod Àeld service tech, installation and servicing of oil well automation and variable frequency drives. We offer a competitive salary plus Àeld bonus & service vehicle. Penta is an industry leader in all aspects of rod pumping sales, applications, analysis and automation. This is an opportunity for the right individual to acquire skills and knowledge to enhance their qualiÀcations in technical Àeld service. Please forward resumes via e-mail, fax or in person. QualiÀed applicants will be contacted for interviews.

Penta Completions Supply & Services Ltd. 58 Devonian Street P.O. Box 667 Estevan, Sk. S4A 2A6 Attention: Lyle Haukeness Fax: 1-306-634-6989 Email: lhaukeness@pentarods.com

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

29(5 <($56 67521* ,1 2,/),(/' &216758&7,21 $ 5 1 ( 7 7 % 8 5 * ( 6 6 Oilfield Construction Limited

Concrete Labourers, 3 Openings: Must have reliable transportation, Wage $15 - $17/hour depending on experience. Fax resume to 634-4643 or phone Sam at 421-1168

Concrete Truck Driver, 2 Openings: Must have 3-A Licence, Wage $22 - $24/hour depending on experience. Fax resume to 634-4643 or phone Ken at 4217119

Field Service Tech

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

Diesel Mechanic: 50-80K depending on experience. Must have tools. Experience in diesel, hydraulics, electrical systems. Welding ability preferred. Fax resume to Tyler 634-4643 or phone 421-3474

Driver, 2 positions: Experience with tandems, belly dumps, loaders, A-Train, and B-Train. 1- licence required. Looking for a long term opportunity? Fax resume to 634-4643 or phone Sam at 421-1168

Penta Completions requires a

PowerTech Industries Ltd. in Estevan is seeking Journeymen Electricians and Apprentices for work in the Estevan and Carnduff areas.

Safety Coordinator: Must have COR safety program and all safety qualiÀcations for Sewer and Water, Concrete construction and aggregate operations. Full time position. Fax resume to 634-4643 or phone Tyler at 421-3474

Sewer & Water Labourers, 4 Openings: $15 -$17/hour depending on experience. Phone Tyler at 421-3474

CAREER OPPORTUNITY

NOW COME JOIN OUR TEAM! We’re hiring for various projects throughout Southern Saskatchewan Over 50 years strong, Arnett & Burgess Oilfield Construction Limited safely provides quality pipeline construction, facility installation, pipeline integrity, custom fabrication, maintenance and related construction services to the energy industry.

All positions require previous experience in Pipeline Construction. Previous experience on Pipeline Integrity projects is an asset.

• FIELD SAFETY ADVISOR

- the ideal candidate will have a CSO designation. This position will oversee projects in southern SK with a home base in Regina

• PIPELINE CONSTRUCTION LABOURERS • FOREMEN • HEAVY EQUIPMENT OPERATORS

-Employee & Owner Operators with Pipeline Construction Experience

Compensation: Competitive wages Overtime Daily Subsistence /Living allowance

Preferred Certifications H2S Alive Standard First Aid & CPR

Required Certifications Driver’s License Ground Disturbance – (Heavy Equipment Operators only)

Please submit your resume to : For more details and other career opportunities please visit: email: hr@abpipeliners.com • Fax:403.265.0922 www.abpipeliners.com For Inquiries please call: 780.384.4050

&$53(17(5 &21&5(7( )25(0$1 5HTXLUHG ,PPHGLDWHO\

Fax: (780) 872-5239

WE ARE EXPANDING

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We are taking applications for a

FULL RIG CREW

WORK BASED OUT OF ESTEVAN - BENEFITS AVAILABLE - WAGES ABOVE INDUSTRY STANDARD

-

APPLY TODAY! In person: 1009A 6th Street, Estevan Fax: 634-7754 Email: cliff@grimeswell.com www.grimeswell.com

Integrated Geomatics is a privately owned Canadian company providing Geomatics and Land Surveying services to the energy industry. To support our continued growth we are looking for a motivated entrepreneurial SLS to start and manage a southern Saskatchewan Land Survey ofÀce. Contact careers@integratedgeomatics.com

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Choose a CAREER with us in the vibrant oil industry! • Accepting applications. • Always focused on safe work. • Wages well above industry standard. • Health benefit plan (paid for by IWS). • Steady work with scheduled days off. • Room for advancement.

TO JOIN OUR TEAM Email your resume to jerry.iws@sasktel.net Fax (306) 634-2607 - Ph (306) 634-2336 Box 490 (477 Devonian St.) Estevan, SK S4A 2A5

www.independentwellservicing.com

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CAREER GuĂ—de

CAREER OPPORTUNITY

PIPELINE NEWS June 2012

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C34

PIPELINE NEWS June 2012

RESOURCE Gu×de A S E E L S ERVICE S ’ D G I B 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

Canada's leading distributor of industrial, Ă eet and safety products.

Proud to provide selection, quality and excellence to our customers.

Quality

LAMICOIDS & metal cable tags EfÀcient Service

Call Linda for more information

Estevan Trophy & Engraving 516 Nesbitt Drive, Estevan • 634-2631 (Behind Power Dodge)

Phone: 634-6005 • Fax: 634-6405 Email: estevantrophy@sasktel.net

RICK CORMIER Manager

Box 208

Estevan, SK

S4A 2A3

461-8471 • 461-8472 • 461-8473 Call: Clinton Gibbons

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Box 609 Carlyle, SK S0C 0R0 www.truetorq.ca

Bus: (306) 634-8084 Cell: (306) 577-8833 Fax: (306) 453-6075 ttorq@hotmail.com

Cordell Janssen District Manager Downhole

93 Panteluk Street, Kensington Avenue N Estevan, Saskatchewan PHONE: 306-634-8828 • FAX: 306-634-7747 cordell.janssen@nov.com • www.nov.com a l t u s g e o m a t i c s . c o m

Lloyd Lavigne • Kirk Clarkson Owners/Managers 6506 - 50th Avenue Lloydminster, AB

Phone: (780) 875-6880

5315 - 37th Street Provost, AB T0B 3S0

Phone: (780) 753-6449

Fax: (780) 875-7076

24 Hour Service Specializing in Industrial & Oilfield Motors

SOUTHEAST SASKATCHEWAN COMMERCIAL CHAIN LINK FENCE EXPERTS CALL FOR A FREE ESTIMATE TODAY!

Call (306) 634-8140

LECLAIR TRANSPORT General OilďŹ eld Hauling

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

Lyle Leclair Cell: 306-421-7060

TERRY DODDS (24 hrs.) (306) 634-7599 Cell. (306) 421-0316

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

M.E.T. OILFIELD CONST. LTD. “All Your Construction and Maintenance Needs� 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

PIPELINE NEWS June 2012

C35

Phone: 780.614.2113 Fax: 780.614.2115 Luc Cell: 780.210.0635 email: nlwelding@mcsnet.ca Box 1789, St. Paul, Alberta T0A 3A0

• Winch Tractors Available

Step Deck Scissor Deck

B-Pressure Steel Sales Portable Rigs Structural Steel Shale Tanks Flock Tanks Silos 400 BBL Tanks Mud Tanks 12’ Brake & Shear 200 Ton Iron Worker Custom Sandblasting & Painting • Internal Tank Coating • • • • • • • • • • • •

www.northernlightswelding.com

C36

PIPELINE NEWS June 2012

The Metaltek Team Will Take Your downhole tools to the Next Level

· 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 · 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

NEW WATER JET CUTTING MACHINE Metaltek shares your passion for New Technology, from adapting existing equipment to designing new products. We are committed to Quality Control at the highest levels in the industry. Our State-of-the-Art Facility provides innovative manufacturing capabilities. We continue providing Cost Effective solutions at all levels from stocked parts to prototyping.

ABSA Registered • Conforming to ISO and API Standards • 24hr Service

780 - 875 - 6535

www.metaltekmachining.com

Design - Engineering - Manufacturing

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