Pipeline News - March 2012 by Estevan Mercury

Bonspiel Season

Oilmen in MMA C17

Q&A: Gregg Scott A9

PIPELINE NEWS Saskatchewan’s Petroleum Monthly

March 2012

Canada Post Publication No. 40069240

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Volume 4 Issue 10

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PIPELINE NEWS March 2012

INSIDE A SECTION 3

Petroleum Registry

Q & A: Gregg ScoƩ

Gas Frac Rules

Editorial

15 CPR Opens Lloydminster Transload Facility

Opinion

31 Raider Well Servicing Steps Up

B SECTION 1

Fishing With A Full Tackle Box

13 Redvers Oil Showcase Coming Up 18 Pickup Takes Out Train Loaded With Crude

27 MulƟ-generaƟonal Mayer Machining 29 Modular Housing Considered For Estevan

C SECTION 1

Weyburn Oilmen's Bonspiel

PSAC Lowers Drilling Forecast

22 Job Placement Projects Applauded At Lakeland 25 Maverick Circles Its Wagons

17 Three Oilmen Prepare To Get In The Cage

29 Career Guide

PIPELINE NEWS Saskatchewan’s Petroleum Monthly

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PIPELINE NEWS March 2012

TOP NEWS

They had to bring in extra chairs for those interested in the big launch of the Petroleum Registry of Alberta here, in Saskatchewan. This meeƟng took place in Estevan on Feb. 7, and was hosted by the Ministry of Energy and Resources.

Petroleum Registry of Alberta about to launch in Sask. By Brian Zinchuk Pipeline News

in the coming years, all under the banner of PRIME. The ﬁrst, and

the ministry. The entire system is online. There is no more fax reporting.

change leaders, etc. The day’s session focused on industry readiness activities, Estevan – making sure data is in April 2, 2012 is sync with both industhe big day, the try and government. “go live” day. AfThe process ter several delays, started in 2009. The Saskatchewan’s go-live day has twice Ministry of Enerbeen pushed back six gy and Resources months. is switching over That hasn’t been to the Petrosuch a bad thing, leum Registry though. “We’ve of Alberta. Now done a lot of testing they are dointernally,” Lerner ing their best to told the attendees, ensure everyone adding it was pretty is ready, including much finished before doing sessions in Christmas. There Estevan on Feb. have been bug fixes 7, Kindersley Feb. that were needed. 8, and Calgary “We think we’ll Feb. 9. be in a lot better ApproxiRoss Weaver is the industry project manager for the Petroleum shape than when we mately 50 atRegistry of Alberta. started,” he said. “This tended the Estevan is a mammoth project.” session. Additional No more paper. Indeed, It affects every prochairs had to be brought most significant, is the implementation of the as of March 15, the in. ministry will no longer Joining the registry, registry for Saskatchewan. accept paper forms, which may soon see a Ready or not, oil calling it the “paper name change, is part producers large and cut-off.” of the larger PRIME “There are no project – PRIME is the small will have to adapt. And despite several forms. It’s all online Process Renewal and data entry,” he said. Infrastructure Manage- years of warning and preparatory seminars Ross Weaver, inment Enhancements. and availability, it’s apdustry project manager The Saskatchewan for the registry, said Ministry of Energy and parent a few still aren’t ready. they have been calling Resources is embarkThis was evidenced companies who may not ing on a comprehensive by some of the questions be ready, offering help project to modernministry officials are still if needed. He showed ize business processes receiving, like, “Where a chart indicating each affecting all areas of do I send my fax?” producing company’s interaction with the oil You don’t, accordrecord – whether they and gas industry. There ing to Bruce Lerner, have had people atare a number of initiatend sessions, lined up tives that will take place speaking on behalf of

ducer, every marketer, and pipeline companies. If one were to go through all the online training modules, it would take approximately 70 hours. And there are people who will need to go through it all, such as a production accountant. There are 77 training modules in all. Part of the set-up process for individual businesses in redundant administrative processes, so that if one person should suddenly no longer be available, the system can still be accessed. The registry has the beneﬁt, or curse, depending on how you look at it, of allowing production information to be available to everyone.

This is not a change, as this information has been available for years. Now it’s a lot more easier to access. “Tight hole,” is not a consideration in the Saskatchewan implementation of the registry, but it does not allow outsiders to determine who sells to who, and pricing is confidential. The registry process self-validates information, essentially keeping track of every barrel. “It’s like a spiderweb in that it all ties together,” Weaver said. “In Alberta, we got under 100 errors on volumetric compliance, and we have just about 200,000 wells. There’s no tolerance for any imbalance.” Lerner added there are significant penalties incurred on a monthly basis if errors are detected. Ken Verot of Jedi Exploration, a small Weyburnarea producer said, “Once the first month is out of the way, it should be easier.”

Bruce Lerner addressed the Estevan crowd on behalf of the Ministry of Energy and Resources.

PIPELINE NEWS March 2012

Crusader Drilling commissions Rig 3

BRIEFS Palliser sets budget

Palliser Oil & Gas Corporation announces its budgeted capital expenditures for 2012 are $30 million, to be spent entirely in the greater Lloydminster area. This includes $13.5 million allocated to the drilling, completing and equipping of heavy oil wells, including the drilling or reactivation of 26 (26.0 net) heavy oil wells. In addition, budgeted capital expenditures include $9.3 million allocated to salt water disposal facilities and infrastructure, $6.3 million allocated to land, seismic and minor property acquisitions, and $900,000 of capitalized overhead and oﬃce equipment. Palliser said it continues to build an inventory of heavy oil prospects through the addition of new lands and the acquisition of additional proprietary seismic in its greater Lloydminster core area.

Atikwa updates SpearÀsh wells Atikwa Resources Inc. reports that its Manitoba Spearfish 7-34 well is flowing at initial rates of 267 bpd of fluid, with an oil cut of 50 per cent, which translates into over 133 bbl. of oil per day. The company expects that the oil cut will continue to increase over the following week or so as the water-based fracturing fluid is recovered and replaced with oil. In addition to the 7-34 well, the company’s 13-23 well has just gone on production and the final well in the program, the 0-26 well, is awaiting the installation of a pumpjack. Briefs courtesy Nickle’s Daily Oil Bulletin

Saskatchewan company tops out industry utilization, metres per rig rates

Crusader Rig 2, seen here, and Rig 1 ended up seƫng the bar for the enƟre drilling industry last year, with the highest uƟlizaƟon rate and average metres drilled per rig. File photo

By Brian Zinchuk Nisku – Yorkton-based Crusader Drilling Corp. sent its newest sweetheart out into the ﬁeld on Valentine’s Day, with Rig 3 going oﬀ to work south of Grande Prairie, Alberta. While it was being readied, Rigs 1 and 2 set the bar for the entire industry. RigLocator.ca noted that among contractors with the best utilization rates last year, Crusader Drilling Corp. was at the top of the list (84.93 per cent), followed by AKITA (71.68 per cent) and Excalibur Drilling Ltd. (70.78 per cent). Crusader scored highest on average metres per rig (84,319 metres per rig), with Ironhand Drilling Inc. (52,665), Excalibur (52,204) and Bonanza Drilling Inc. (52,197) battling for the next three top positions. As for Rig 3, Rigworks did the initial work on the derrick and sub-structure, with Jayco completing it. Do-All Metal Fabricating put together the drawworks and skid, while Mustang Controls did the electrical work. Jayco was the lead contractor, with assembly having taken place in Nisku, Alta. Construction

started last summer. President and CEO Don Rae told Pipeline News they have some “nice wells” lined up, with 5,600 metre measured depth for horizontal wells. They are expected to take 45 to 50 days each to drill. “That’s deep work,” Rae said via phone from Nisku. The job is for Harvest Operations Corp. “We’ve got a two year contract,” he said. Other than a few delays, he said, “It pretty much went according to plan.” Like southern Saskatchewan, there’s not a lot of snow in that area, which could mean a short breakup. This is Crusader’s ﬁrst rig equipped with two 1,300 horsepower mud pumps, each powered by V12 Cummins diesel engines, and Rouse 2-speed clutches. “Those pumps were the big seller,” Rae said. The unit has dual gen sets. Rae added “It’s a bigger derrick,” referring to the telescoping double derrick.

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PIPELINE NEWS March 2012

BRIEFS

Gas frac rules shed light on Sask fracs

TraÀna terminates proposed sale of southwest Sask. assets

By Geoff Lee Pipeline News Calgary – New hydraulic fracturing operating practices designed to improve water management and water and fluids reporting for shale gas and tight gas development in Canada shed light on fracking in Saskatchewan. Multi stage fracking in Saskatchewan is confined to horizontal wells to produce oil and Deputy Energy and Resources Minister Kent Campbell says the practice is safe. “Fracking in the province takes place “a minimum of hundreds of metres below the water table and, in some cases, thousands, beneath layers of solid rock,” wrote Campbell in a column printed in the Regina Leader-Post on Feb. 13. “Near surface, the wellbore through which fracking fluids flow is protected by layers of steel and cement to protect groundwater,” he wrote. Saskatchewan has no unconventional gas production from shale gas. It is mostly produced in Alberta and British Columbia in Western Canada. Gas fracking involves drilling wells through shale and then blasting a mixture of water, sand and chemicals into the rock. The resulting pressure fractures the formations, releasing the trapped gas. The new operating practices announced by the Canadian Association of Petroleum Producers on Jan. 30 will help to counter public concerns that chemicals used in gas fracking contaminate drink-

Kent Campbell, Deputy Minister of Energy and Resources says fracking for oil in Saskatchewan is environmentally safe in response to new hydraulic fracturing operaƟng pracƟces for shale and Ɵght gas operators in Canada. File photo

ing water and soil. “The hydraulic fracturing operating practices demonstrate the Canadian natural gas industry’s continued efforts to ensure responsible resource development and protection of Canada’s water resources,” said CAPP president Dave Collyer. “Applying these new operating practices will contribute to improving our environmental performance and transparency over time, both of which

contribute to stronger understanding of industry activity and better relationships with the public, stakeholders and government.” In Saskatchewan new horizontal drilling techniques combined with hydraulic fracturing have unlocked the light oil from the Bakken formation in southeastern Saskatchewan. Campbell notes Saskatchewan’s oil operations use much less water than large shale gas

operations in the U.S. such as the Marcellus shale gas play in the Appalachian Basin. In Saskatchewan, no fresh water can be used without appropriate approvals from provincial water agencies. Once a fracking operation is concluded says Campbell residual ﬂuids are recycled and disposed of at provincially approved waste processing facilities or stored deep below surface. ɸ Page A8

Trafina Energy Ltd. has cancelled the proposed sale of its entire working interest in its Rangeview and Divide properties in southwest Saskatchewan to an arm’s-length private energy company. The company first announced the transaction Dec. 21, 2011. Although the potential buyer paid an initial $75,000 non-refundable deposit, Trafina terminated the agreement after the buyer failed to pay an additional $50,000 non-refundable deposit by Jan. 18, 2012. “The proposed purchaser continues to indicate an interest in the southwest Saskatchewan assets, leaving open the possibility of a future sale agreement between the two parties,” Trafina said in a Jan. 27 press release. The properties in question are currently producing approximately 70 bbls of oil per day from the Upper Shaunavon and Madison oil zones, in addition to some minor gas production. While the company’s focus is on its McMullen heavy oil project in northern Alberta, Trafina has identified future developmental potential on the southwest Saskatchewan properties by way of drilling several horizontal wells. If the deal had been completed, proceeds (including adjustments) from the sale of the properties were anticipated to be approximately $1.8 million.

Briefs courtesy Nickle’s Daily Oil Bulletin

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PIPELINE NEWS March 2012

PIPELINE NEWS

EDITORIAL

Mission Statement: Pipeline News’ mission is to illuminate importance of Saskatchewan oil as an integral part of the province’s sense of community and to show the general public the strength and character of the industry’s people. Publisher: Brant Kersey - Estevan Ph: 1.306.634.2654 Fax: 1.306.634.3934 Editorial Contributions: SOUTHEAST Brian Zinchuk - Estevan 1.306.461.5599 SOUTHWEST Swift Current 1.306.461.5599 NORTHWEST Geoﬀ Lee - Lloydminster 1.780.875.6685

Associate Advertising Consultants: SOUTHEAST • Estevan 1.306.634.2654 Cindy Beaulieu Candace Wheeler Kristen O’Handley Deanna Tarnes Teresa Hrywkiw SOUTHWEST • Swift Current 1.306.773.8260 Doug Evjen Stacey Powell NORTHWEST • Lloydminster Randi Mast 1.780.875.6685 MANITOBA • Virden - Dianne Hanson 1.204.748.3931 • Estevan - Cindy Beaulieu 1.306.634.2654 CONTRIBUTORS • Estevan - Nadine Elson To submit a stories or ideas: Pipelines News is always looking for stories or ideas for stories from our readers. To contribute please contact your local contributing reporter. Subscribing to Pipeline News: Pipeline News is a free distribution newspaper, but is now available online at www.pipelinenews.ca Advertising in Pipeline News: Advertising in Pipeline News is a newer model created to make it as easy as possible for any business or individual. 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.

Petroleum Registry portends more co-operation to come Saskatchewan is taking a bold step next month, finally joining the Petroleum Registry of Alberta. This marriage, on April 2, may eventually become a polygamous affair, as Manitoba and British Columbia are having feelers extended to them. The registry will affect each and every one of the hundreds of producers in Saskatchewan, from Husky and Crescent Point to the one-man operations that have been run out of a pickup truck, cellphone, and fax machine on the kitchen table. It’s part of a much-needed modernization of all the business processes within the Ministry of Energy and Resources. In 2006 they initiated the PRIME project – Process Renewal and Infrastructure Management Enhancements. It has been 25 years since Energy and Resources updated their business processes, at a time when the World Wide Web didn’t exist. In 2006, they recognized the need for the updates, and after some study, the government got serious about it in the 2009-2010 fiscal year. It will take another three to four years to fully implement. At least that was the timeline back in 2010. But the implementation of the petroleum registry, the most fundamental change, was delayed twice, while they worked out the bugs. It’s a fundamentally different concept from what Facebook founder Mark Zuckerberg, who recently

said in Facebook’s IPO paperwork, “We have the words ‘Done is better than perfect’ painted on our walls to remind ourselves to always keep shipping.” When you’re dealing with literally billions of dollars of money, belonging to corporations, governments, and ultimately people, in this case perfect is better than done. It’s a good thing the ministry has taken the time to work out as many bugs as possible. Imagine the headaches if they hadn’t. It’s not hard to see this integration with Alberta coincides nicely with Premier Brad Wall’s New West Partnership, where the western provinces pledged to work more closely with one another in reducing unnecessary restrictions to trade. It doesn’t mean we’ll be taking down the border markers in Lloydminster anytime soon, but it does mean it is indeed possible for governments to play nicely together. Wouldn’t it be nice if this could happen on more fronts? Everything from labour certiﬁcation recognition to trucking standards? Oh wait, that was part of the whole New West Partnership, wasn’t it? Let’s hope our respective governments continue on this trend, and in the process, make it easier to do business in multiple jurisdictions. Perhaps the next front will be streamlining regulatory approvals. Alberta is already moving down that track, and the feds are getting serious about it too. Is Saskatchewan next?

PIPELINE NEWS March 2012

OPINION From the Top of The Pile By Brian Zinchuk

Big paying jobs on the line In the February edition of Pipeline News, one item regarding the Keystone XL pipeline project struck me – how many jobs the U.S. is forgoing by putting oﬀ this project. TransCanada put out a detailed list of how many people work on a pipeline “spread,” or crew, working on a portion of the project. There will be many spreads of this type all along the line. Back in the summer of 1998, I was itching to get to work. I already had a job, but I was so poorly paid as a reporter with a small weekly newspaper in rural Saskatchewan, I had to ask student loans for relief. I couldn’t make the $100 a month payments and still eat. The Enbridge Terrace B expansion was about to kick oﬀ, and I expected to go to work any minute. My job was that of an oiler – the absolute lowest man on the pipeline totem pole – lower than even the lowest labourer when it came to pay. I was to act as a swamper/apprentice for an excavator operator. Whenever the machine stopped, I would service it – greasing it, checking oil, cleaning windows. When it was digging, I measured ditch. When it was moving down the right of way, I watched for power lines and held a stop sign at road crossings. At the end of the day I cleaned tracks. For this I was making $20 an hour, plus overtime

after eight hours and double-time after ten hours in a day. We typically worked eleven hours a day. Saturdays were all overtime, and on the rare occasion we worked Sundays, that came in as double time. (If you did work Sunday, the increase in pay would put you into a higher tax bracket, and the increased taxes took nearly every dime of that overtime.) On top of this, there was a $100 a day non-taxable living allowance paid for seven days a week. My monthly income, including the living allowance, went up by a factor of seven. Not seven per cent, but 700 per cent. While the job was short term – less than half a year, it was salvation. A year later, I would spend the better part of 16 months working on the Alliance pipeline. I made more money then than at any time in my life before or since. It is with this in mind that I think of the American workers who could be bringing in such wages. Pipeline wages and living allowances have climbed a fair bit in the past 14 years. Imagine if you are a worker in Nebraska, on the verge losing his home, and you have the opportunity to take up such a job – what would it be worth to you?

Lee Side of Lloyd By Geoff Lee

Penny-pinching can wallop pipelines Sometimes trying to pinch a few pennies can be costly in the long run. That may have been the case for TransCanada’s Keystone XL pipeline that was denied a permit to build and ship Alberta crude to the U.S. Gulf Coast. A similar fate could be in store for the proposed Enbridge Northern Gateway pipeline. Almost immediately after Barack Obama originally delayed a decision on the Keystone XL until after this year’s presidential elections due to environmental concerns about the route through the ecologically sensitive Sandhills area in Nebraska, TransCanada oﬀered to re-route the pipe. One of TransCanada’s key selling points is its commitment to build the safest possible pipeline. Why then did not they not put their money where their mouth is and simply avoid the epicentre of protests? The answer is likely due to the added cost of re-routing the line along with the fact they underestimated the political weight of environmental opponents. Had they chosen the longer but safer route in

the first place it is likely the line would already be under construction even though it would have cost several more millions of dollars to construct. Now the company has to re-apply to the U.S. State Department at additional inflationary costs and time with an emboldened opposition ready to fight the next proposal with confidence. The Northern Gateway pipeline could suffer a similar fate if Enbridge miscalculates the scope of environmental concerns for its proposal to route the pipeline from Alberta to Kitimat. The project calls for the construction of a new port where oil tankers would take shipments of Alberta crude through the narrow Douglas Channel before reaching open waters en route to markets in Asia. The channel adjoins the Great Bear Rainforest, a 64,000-square-kilometre stretch of wilderness considered one of the most ecologically important on the planet. With fears this route would lead to another Exxon Valdez oil spill, it is no wonder Aboriginals and environmental groups are determined to kill this proposal as it stands. Building the line to Prince Rupert following the path of the existing Pacific Northern Gas Pipeline would cost Enbridge more, but they could be forced

into it if their opponents win the day. Prince Rupert already has a deep water port with a route to open water that is shorter and simpler than it is from Kitimat. As a former resident of Kitimat who enjoyed ﬁshing in the Douglas Channel, it is not hard for me to imagine the damage that even the daily disposal of ship bilge would do to ruin ﬁshing in the channel. The history of Kitimat is one of engineering achievements, notably the construction of the Kemano Power Project in the 1950s through impossible terrain and the Alcan Aluminum Smelter where I worked. Surely Enbridge has the know-how today to engineer and build a safe pipeline to Prince Rupert through terrain where one pipeline has existed since 1968. Re-routing may cost Enbridge more to construct as is the case with the Keystone XL, but the Prince Rupert destination is a proven route to a city that needs an economic boost. In the end, Enbridge may be forced into it at greater cost by people who don’t want their wilderness to be compromised. Penny pinching is best left to misers than pipeline builders who tout safety with every public relations message.

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

PIPELINE NEWS March 2012

New fracking operating practices apply to all CAPP members ɺ Page A5 The discharge or storage of used fluids into the surface environment is strictly prohibited in Saskatchewan. The practice of fracking in the province is managed by the Saskatchewan Watershed Authority, Occupational Health and Safety, the Ministry of Environment, the Saskatchewan Water Corp., and the Ministry of Energy and Resources. The new national hydraulic fracturing operating practices developed by natural gas producers, apply to all CAPP members exploring for and producing natural gas in Canada. The operating practices follow the release of CAPP’s Guiding Principles for Hydraulic Fracking in September 2011. Those principles obligate CAPP members to sound wellbore construction, fresh water alternatives, recycling where feasible, voluntary water reporting, fracturing fluid disclosure, and technical advancement and collaboration. The new operating practices support the guiding principles for hydraulic fracturing and strengthen industry’s focus on continuous performance improvement. “The establishment of Canada-wide hydraulic fracturing principles and practices is part of the natural gas industry’s ongoing efforts to ensure safe development of Canada’s shale gas resources,” said Collyer. “Shale gas can and is produced responsibly every day across Canada and the United States with almost 200,000 wells fractured in Western Canada over the last 60 years. “With increased focus on fracturing from coast-to-coast, the Canadian industry wants to be at the forefront of transparency and to establish clear and consistent practices across the country.” The new CAPP hydraulic fracturing operating practices are: Fracturing fluid additive disclosure Purpose: To disclose on a well-by-well basis the chemical ingredients in fracturing fluid additives which are identified on Material Safety Data Sheets (MSDS) for each additive, including trade names, general purpose and concen-

trations. This information will be made publicly available. Fracturing fluid risk assessment and management Purpose: To better identify and manage the potential health and environmental risks associated with fracturing fluid additives and ultimately increase the market demand for more environmentally sound fracturing fluids. The process for developing well-specific risk management plans for hydraulic fracturing fluid additives will be made publicly available. Baseline groundwater testing Purpose: To develop domestic water well sampling programs and to participate in regional groundwater monitoring programs; establish a process for addressing stakeholder concerns regarding water well performance; and to continue to collaborate with government and other industry operators. Wellbore construction and quality assurance Purpose: To ensure that wellbores are designed and installed in a manner that maintains integrity before hydraulic fracturing begins, including creating a continuous cement barrier to protect groundwater and developing remedial plans in the unlikely event that a wellbore is compromised. Wellbore construction and quality assurance practices will be made publicly available as they relate to this practice. Water sourcing, measurement and reuse Purpose: To safeguard surface water and groundwater quantity by assessing and measuring water sources, ensuring no withdrawal limits are exceeded, monitoring water sources as required to demonstrate the sustainability of the source; and collecting and reporting water use data. Water measurement, sourcing and reuse practices will be made publicly available. Fluid transport, handling, storage and disposal Purpose: To identify, evaluate and mitigate potential risks related to the transport, handling, storage and disposal of fluids (fracturing fluids, produced water, flowback water and fracturing fluid wastes) and ensure a quick response to accidental spills. Fluid transport, handling, storage and disposal practices will be made publicly available.

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PIPELINE NEWS March 2012 Gregg ScoƩ, president of ScoƩ Land & Lease Ltd., congratulated his employees in Lloydminster for their efforts at the grand opening of a new and bigger oĸce and 25 years of business in the city. The event was well aƩended and included a ribbon cuƫng with addiƟonal speeches from branch manager Todd Plandowski, Lloydminster Mayor Jeī Mulligan and MLA Lloyd Snelgrove.

Scott Land grows by relationship building Scott: The oil and gas industry is a very competitive business. A lot of times it gives the client a competitive advantage if they can assemble land quietly using a broker like us to maintain their confidentiality. If you look at land maps, you will see that Scott Land is one of the top land holders all across the west. At one time in the oilsands, I think we held half of the land in our name. It was so competitive when all of the companies were assembling their land positions. PN: Is Lloydminster your busiest land services location? Scott: Right now it's one of our busier offices. Regina and Edmonton are slightly larger offices but Lloydminster has been our longest servicing office and one of our steadier offices. PN: Do you conduct most of your business in Saskatchewan or Alberta? Scott: At the Lloyd office, it’s roughly 50/50 as

it probably should be. We work a lot in the heavy oil-fields here in Saskatchewan, but in Alberta our area of coverage goes way up north where it is Crown-owned surface rights. We work in some of the Aboriginal communities as well. PN: What led to your expansion and new location in Lloydminster? Scott: We opened our first branch office in Lloydminster 25 years ago. We had to move a couple of times but this office came available last year right when we really needed extra room. We had hired some people and we were kind of working on top of each other. We needed more room and room for growth. Because of the booming economy of Lloyd, we didn’t have a lot of choices for locations. When you look at this wonderful space that we have here, we are fortunate that it became available right when we needed it. ɸ Page A10

For the 20th consecutive year, Scott Land & Lease Ltd. ranked atop the Daily Oil Bulletin list of Crown land purchasers in Canada during 2011, a year that saw a total of $4.13 billion in cash bonus bids. Scott Land invested $1.45 billion on behalf of producers last year to acquire 1.42 million hectares of land. The company currently operates out of six locations including its head oﬃce in Calgary. Scott Land celebrated the grand opening of their new oﬃce and 25 years in Lloydminster on Jan. 24. Company president Gregg Scott, who is originally from Saskatoon, was on hand to cut the ribbon and answer questions about his company’s growth and success in Lloydminster and throughout Western Canada.

PN: What is the focus of your business? Scott: We acquire land for oil companies, primarily both surface leases and pipeline rights of way, freehold mineral leases and Crown leases on land sales. We’ve been the top land buyer at Crown land sales for the last 20 consecutive years. We are very proud of that. We pay a lot of money to the government at Crown land sales on behalf of clients. We also do a lot of public consultation and stakeholder engagement work. Outside of oil and gas, we also work on wind projects, water rights of way for water lines, and infrastructure, highways and telecommunications projects. We are even the top land buyer for potash mining in Saskatchewan. PN: Why do oil and gas companies buy land through your company?

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PIPELINE NEWS March 2012

'There's only one way to deal with land owners and that's fairly' ɺ Page A9 This space allows us lots of room to grow and gives our staff a really comfortable working environment which is important for efficiency and staff effectiveness. PN: Where will your next expansion take place? Scott: Right now, we have six offices and if we were going to be moving it would probably be either in southwest Saskatchewan, North Dakota or potentially Saskatoon. Saskatoon is more for the potash, but we go where the new plays are developing. There has been a lot of oil activity along the U.S. /Canadian border. We have a very busy office in Regina and a lot of clients are moving across the U.S. border into North Dakota and into Montana. We’ve been asked by a number of those clients to establish offices in North Dakota. That may be the next one. PN: Can you comment on your company’s relationships with clients and landowners? Scott: That’s one of our strengths here in Lloydminster. Howard Parkyn (senior land agent) and Todd Plandowski (branch manager), two or our longterm employees, have really solid relationships with landowners as do our other staff who all live in the area. That comes from years of dealing with landowners and the trust that's developed, and the fact both employees are active in the community. Both of them have coached hockey and different sports so people know they are good contributors to the community. There is only one way to deal with landowners and that's fairly. That's been our motto from day one. There is not a farmyard that they can't drive into that they've worked on in the past and do another deal. I think that's where our clients benefit from those strong relationships and reputation of our local people. PN: How does your company recruit new land agents to grow the business? Scott: We find land agents two or three ways. One is we grow them internally. We hire people without experience and train them and grow them internally. We also hire experienced people from other firms. We hired two retired RCMP officers here in our Lloyd office and they have done a remarkable job in the land business. ɸ Page A11

ScoƩ Land & Lease Ltd. outgrew their previous locaƟon in Lloydminster. The new oĸce on 18th Street currently houses 13 employees under the leadership of branch manager Todd Plandowski. The grand opening at the two storey building took place on Jan. 24

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PIPELINE NEWS March 2012

A11

Lloydminster branch manager Todd Plandowski, leŌ, and land agent Jim Hurd were all smiles during the grand opening of the new oĸce on. ScoƩ Land currently has six locaƟons including its head oĸce in Calgary.

ɺ Page A10 The qualifications for the job are very similar in terms of having good people skills and knowing how to work in the rural areas and having a sense of community. There is a high degree of trust and knowledge so they’ve been great additions. We are very creative in how we find and train our people. PN: Why are land prices so high for oil and gas exploration? Scott: There are several reasons. One is commodity prices, in other words $100 oil doesn’t hurt. Also there’s some really new technology that’s allowing some of the established oilfields, not unlike what we see in the Lloydminster area, to have a recovery factor that is phenomenal compared to what it was forecast to be. Wherever there is land in those areas, the price for that land is skyrocketing because there’s a better chance for a good upside. Because of the competitive nature of the indus-

try and the large amount of money that was raised last year on the markets, there’s a lot of money looking for a good home. A lot of clients are looking at land sales to establish their next big growth areas. PN: Saskatchewan Premier Brad Wall must love the land sales revenues your company generates for the province? Scott: Brad Wall and his government have done a remarkable job in Saskatchewan. I am originally from Saskatoon, and it’s amazing to see what has gone on there since I left 30 years ago to get into the land business in Alberta. Twenty five years ago, we opened an office in Regina and we have been very busy in Saskatchewan ever since. It’s always very rewarding to me to see new activity in Saskatchewan, whether its oil or gas or potash. Being it’s my home province, it’s wonderful to see the effect that a positive government has had.

The people of Saskatchewan are a hard working industrious people. They just needed an environment of opportunity. I think that’s what they have now. We are all seeing the beneﬁts of that. PN: How does the proposed Keystone XL pipeline factor into land acquisitions? Scott: We didn’t work on the right of way for that project, but I think a lot of people understand now that a lot of oil comes from Canada into the U.S. When you have a pipeline becoming an election issue in the U.S. presidential election, you know that it’s gained some attention. What we all learned is the importance of good community relations and consultation. I think with most future pipelines, we're going to ﬁnd there's going to be more time spent at the front end dealing with routing issues, local issues, non-resident issues (special interest groups) and the county/ municipal issues to make sure that a pipeline project has a chance of being approved.

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PIPELINE NEWS March 2012

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Scott Land opens new Lloyd ofÀce Geoﬀ Lee Lloydminster – Relationship building is the key to the success of Calgarybased Scott Land & Lease Ltd. that provides land services to a growing list of industries in Western Canada led by oil and gas and potash mining. That fact was evident during a ribbon cutting ceremony on Jan. 24 to mark the grand opening of their new oﬃce and 25 years of business in Lloydminster.

Out of 50 invitations that branch manager Todd Plandowski sent out to clients and guests, 46 people replied and poured into the foyer of the new two storey office on 18th St. Gregg Scott, president led off the speeches with a special tribute to longterm employee and land agent Howard Parkyn who was the first manager in Lloydminster where Scott established its first branch office. “Howard was our first employee here 25 years ago. Howard and I met 25 years ago,” said Scott. “It started with a little office that he turned into a big office. Along the way, Todd joined us and for the last six years has been a big part of our growth here with the team that he’s brought together. “I am originally from Saskatoon and early in my career I acquired a number of well sites in this area and that’s when I met Howard and I knew this business had potential. ɸ Page A14

POWDER COATING Skid Snowmobile & Motorcycle Land agent Tyler Kramer, leŌ, and Lloydminster branch manager Todd Plandowski took a moment to pose for this photo on a stairway during their grand opening of their new locaƟon in Lloydminster. The oĸce is a two storey complex that currently houses 13 employees.

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PIPELINE NEWS March 2012

Gregg ScoƩ, president of ScoƩ Land & Lease cuts the ribbon to celebrate the grand opening of the new oĸce and 25 years of business in Lloydminster. ScoƩ is Ňanked on the leŌ by Lloydminster Mayor Jeī Mulligan, ScoƩ Land vice-president JR Houghton and branch land agent Howard Parkyn. To his right is branch manager Todd Plandowski and MLA Lloyd Snelgrove on the right.

Six ofÀces and 185 employees ɺ Page A13 “We have been here ever since and we’ve been in growth mode. We’ve now got six offices and 185 full time employees.” Including the head office in Calgary, Scott Land has locations today in Fort St. John, Grande Prairie, Edmonton, Lloydminster and Regina. “We’ve been on a growth curve the last few years, and it’s wonderful to be part of this oil and gas industry in Lloydminster.” Scott Land acquired the new building last summer after outgrowing its downtown location in pace with the demand for heavy oil production in the area. “There is getting to be more and more exploration further away from Lloyd, and we still end up being the closer brokers for people to use,” he said. “Six years ago when I first started, we had four employees and we are up to 13 now. “It’s all attributed to our clients that we deal with – the CNRLs, the Huskies, the Talismans and the smaller clients having their faith in us and our work.” Scott Land has land specialists in oil and gas, utilities, government, pipe-

lines, infrastructure, wind power, oil sands, engineering and telecommunications sectors and works closely with clients and land owners. When Parkyn began his career in Lloydminster as a Scott Land agent in 1987, his work was oil and gas related, but he is not surprised that much by how the company has grown and diversified. “That’s what hard work does for you. We’ve got a busy office and it looks like good potential for growth in the future too,” he said. “Our Lloyd area is very busy. Heavy oil has stayed busy for quite a few years. Even when things slowed down a bit we managed to do very well.” For the 20th consecutive year, Scott Land & Lease Ltd. ranked atop the Daily Oil Bulletin list of Crown land purchasers in Canada during 2011, a year that saw a total of $4.13 billion in cash bonus bids. Scott Land invested $1.45 billion on behalf of producers last year to acquire 1.42 million hectares of land. “When I think what we have accomplished in Lloydminster over the years it makes me very proud,” Scott added in his opening remarks. “We have probably acquired thousands of well sites in that period of time, thousands of kilometers of right of way pipeline and paid out millions of dollars to land owners – Crown land sales, freehold mineral leases and all the other land deals we’ve done with landowners. “It’s helped the economy with the work we have done here with our clients and the relationships that we enjoy both in the farming community and our fellow service providers in Lloydminster. You couldn’t ask for a better situation. “I came up here yesterday with our vice-president, JR Houghton and we were talking about how time flies and how proud we are of our accomplishments here.” Lloydminster Jeff Mulligan and MLA Lloyd Snelgrove also took the opportunity to congratulate Scott Land employees for their latest expansion. Mulligan also presented the company with a picture for the office on behalf of the city. Troy Illingworth Cell: (780) 808-3183 Tim Sharp Cell: (780) 871-1276

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A15

CPR opens new transload base near Lloyd

Canadian PaciĮc Railway began shipping crude oil by rail in February from a new transload facility located on the Saskatchewan side of Lloydminster. The facility is operated by Torq Transloading.

By Geoff Lee Lloydminster – Canadian Pacific began shipping crude oil by rail from a new transload facility near Lloydminster, Saskatchewan in early February with further expansion planned in 2012. The facility operated by Torq Transloading will initially load up to 15 rail cars a day – each with a 600-barrel capacity for the first customer, NuStar Energy LP based in San Antonio, Texas. NuStar is one of the largest asphalt refiners and marketers in the U.S., and is the second-largest independent liquids-terminal operator, with a large pipeline, storage tank network and a fuels refinery. “Moving Canadian crude through CP’s North American network is a great complement to our asset base, which includes terminals and a large and expanding fleet of 1,700 coiled and insulated rail cars,” said NuStar president and CEO Curt Anastasio. “We believe that moving undiluted heavy Canadian crude by rail to coastal markets is an eco-

nomically viable solution that brings added value to the end users, as well as the producers in Canada.” The transloading process involves the use of a specialized pump and closed loop hose system, which safely transfers the oil from trucks to purpose-designed rail cars. “This new facility and the planned expansion in 2012 represent an exciting growth opportunity for CP’s energy portfolio,” said CP energy and merchandise vice-president Tracy Robinson. “CP offers a flexible, reliable and efficient method of transporting crude oil and other energyrelated products to emerging markets and we are proud to be partnering with NuStar to meet its growing transportation needs.” The planned expansion of the Lloydminster transload facility is in keeping with CP’s plans to invest between $1.1 billion and $1.2 billion for infrastructure renewal, network enhancements and expansion projects in 2012. “Lloydminster is highly regarded for innovation in the energy sector and this initiative is one

more opportunity to shine positive light on this region,” commented Mayor Jeff Mulligan. “Torq Transloading and Canadian Pacific are two solid organizations with a healthy balanced focus on innovation, efficiency, safety and economic growth joining forces to serve the needs of industry leader NuStar Energy LP. “We are excited to see where this may stimulate more transload facility activities in our city.” CP continues to increase volumes of crude oil movement by rail out of the Bakken oil formation through a new CP transload facility operated by Bulk Plus Logistics in Estevan. That facility opened in early December. (See related story page B16) Of the 140 million tons of freight shipped annually on CP, hundreds of thousands of carloads are directly related to energy production and distribution. This includes crude oil, sulphur, fuels, diluents and materials key to the energy industry, such as pipe and frac sand.

MultiStim Multi-Stage Fracturing with Removable Ball Seats and Shiftable Sleeves is an innovative completion technology from Logan Completion Systems that is especially designed for producers who are tackling multi-stage fracs. One-trip installation for faster completion times and frac valves with fully removable ball seats post-fracturing — without milling or drilling — reduces well costs, improves production, and maximizes your profits. The key feature of the MultiStim System is the use of the full-bore inner diameter which allows conventional tools to be run after the seats are removed. Cementing, or plugging and perforating operations are not required. MultiStim is suited to extended reach horizontal wells. Sleeves can be selectively opened and closed post-fracturing to allow customized stimulation, testing or production management of the entire wellbore for the life of the well. The MultiStim Fracture Isolation Liner System and MultiStim Cup Frac Tool System (a straddle cup system) are suitable for acid, proppant or energized fracturing operations in all types of formations. Contact us for complete details. www.logancompletionsystems.com

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A16

PIPELINE NEWS March 2012

Wainwright spiel may stick with schedule Àx

Meet the A-Event winning D & C Melin Trucking rink of (l-r) Colin Tanton, DusƟn Small, Dallas Melin and Dean Spornitz. Photos submiƩed

Wainwright, Alta. – The first weekend of February could be the new normal date for the annual Wainwright Oilmen’s Bonspiel. The 2012 version was held Feb. 3-5 after being bumped from its usual time slot during the first weekend of November due to an ice plant breakdown at the Wainwright Curling Club at that time. Lead organizer Bob Bishop, who is a field manager for Baker Hughes, said the rescheduled event went off without a hitch with no ice problems or complaints reported by any of the 21 teams that took part. “We are going to have a meeting and decide if we are going to stick with this – a date in February

This year’s B-Event champ is the Clean Harbors’ squad of (l-r) DusƟn Stobert, Keith Stobert, Don Heibert and Ron Lindsay.

The new schedule worked well for the D & C Melin Trucking A-Event championship team of Colin Tanton, Dustin Small, Dallas Melin and Dean Spornitz. The B-Event winner was the Clean Harbors’ squad of Dustin Stobert, Keith Stobert, Don Heibert, Ron Lindsay All players enter the tournament knowing their team entry fees are plowed into prizes that are worth competing for. The available loot may have inspired the Champion Technologies’ outﬁt of Ed Rogoz, Judy Bethune, Cory Mardian, and Brian Bethune to capture the C-Event title. ɸ Page A17

versus November. It didn’t go too bad,” he said. “We haven’t totally decided which date we are going to pick. It’s six of one and half dozen of the other.” Bishop said having the event the ﬁrst weekend of February puts it in the thick of the curling season with the downside being that’s the same date as the Elk Point bonspiel. “We pulled in a few more oilﬁeld curlers this year – that’s one reason for having it in February versus November,” he argued. “November is kind of busy sometimes. We were able to get a few more of the Talisman guys, and that sort of thing, curling.”

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The C-Event Ć&#x;tle went to the Champion Technologiesâ&#x20AC;&#x2122; team of (l-r) Ed Rogoz, Judy Bethune, Cory Mardian and Brian Bethune.

Éş Page A16 The D-Event winner was the Gibsonâ&#x20AC;&#x2122;s Hardware foursome of Stan Gibson, Tom Pederson, Mike Smith, and Brett MacDonald. As for Bishopâ&#x20AC;&#x2122;s fortunes with his Baker Hughes team, he noted, â&#x20AC;&#x153;I lost out in the D-Eventâ&#x20AC;Śbit of a rough go this year â&#x20AC;Ś LOL,â&#x20AC;? in a follow-up e-mail posting. Bishop took the opportunity to applaud the work of the local Elks and the Ladies of the Royal Purple who host the annual banquet and dance at the Elks Hall. â&#x20AC;&#x153;We are lucky to have a service club like that in our community as well,â&#x20AC;? he said. â&#x20AC;&#x153;We also had really good sponsorship again this year with all of our donors. We are very fortunate in Wainwright to have a good group of businesses to support our spiel.â&#x20AC;? Bishop said businesses are eager to donate one large prize for a silent auction held during the banquet knowing the money is going to good causes. â&#x20AC;&#x153;Whatever money we raise â&#x20AC;&#x201C; after all of our bills are paid â&#x20AC;&#x201C; we donate to things like our food bank, the library and the pumpjack restoration fund,â&#x20AC;? he said. â&#x20AC;&#x153;In our wrap-up meeting, we see what we have left and disperse what we can.â&#x20AC;?

The D-Event victor is the Gibsonâ&#x20AC;&#x2122;s Hardware foursome of (l-r) Stan Gibson, Tom Pederson, Mike Smith and BreĆŠ MacDonald.

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PIPELINE NEWS March 2012

Logan launches new thermal tools “The thermal market is where everyone wants to go. To stay compeƟƟve in this game you have to follow the play, and this is where it’s going to go,” - JusƟn MalleƩ JusƟn Mallet holds a new X-Span permanent casing patch that Logan CompleƟon Systems is markeƟng for heavy oil thermal applicaƟons.

By Geoﬀ Lee Lloydminster – Logan Completion Systems is not resting on its laurels when it comes to launching new completions and well construction products for heavy oil thermal markets. The company just released its new Logan Wiper Hold Down retrievable tension packer

called the LW-HD manufactured in Lloydminster. “We have had a lot of customers and engineers in looking in at it. We are entering the market with a very competitive price. Now it’s just kind of a waiting game,” said district manager Justin Mallett at the Lloydminster shop.

Logan Completion Systems, which is a subsidiary of Logan International along with Logan Oil Tools and Dennis Tool Company, plans to launch new thermal well construction and completion systems in March. “The thermal market is where everyone wants to go. To stay competitive in this game

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you have to follow the play, and this is where it’s going to go,” said Mallett. “There is going to be a huge focus this year on thermal/SAGD. A lot of our customers are advising over the next few years that their focus is going to be on these types of wells.” The new thermal well construction and completion systems include setting tools and come with either a large bore production packer or a thermal double grip liner packer – both designed for high temperature conditions.

“A lot of companies are telling us they are going to be opening some new thermal ﬁelds that are a lot bigger than what they have going now. It’s going to be a huge focus,” emphasized Mallet. Mallett expects the new retrievable packer systems will be ready for customer inspection and sales in March. “It’s something we are conservatively starting to talk to people about. I want to let people know it is coming. We want to be ahead of the game,” said Mallett.

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“Logan Completion is constantly evolving with the oilfield market and trying to introduce new and innovative products to the market. “You can’t wait for the customers to come to you. We have to let everybody know we have got it before they need it.” Logan Completion also provides highquality equipment and services to the unconventional oil and gas fracturing markets led by its flagship MultiStim Fracture Isolation Systems. The technology is designed for producers who are tackling multistage fracs. The MultiStim system facilitates the complete retrieval of the balls and seats postfracturing and leaves a fully open well bore that increases production flow capacity and allows easier downhole intervention. ɸ Page A19

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A19

This is a collecĆ&#x;on of some of the newest heavy oil thermal tools available from Logan CompleĆ&#x;on Systems at the Lloydminster complex.

Éş Page A18 This proprietary multi-stage completion technology features valves with fully retrievable seats post-fracturing via threaded tubing â&#x20AC;&#x201C; without milling or drilling. â&#x20AC;&#x153;There are a lot of companies into multi-stage fracturing, but itâ&#x20AC;&#x2122;s going to the way of the future,â&#x20AC;? said Mallett. Logan Completion manufactures and distributes everything from casing patches, open hole packers, and retrievable and permanent packers, to mud motors, liner hangers and service and ďŹ shing tools. The LW-HD retrievable tension packer is typically used in an application for holding down wiper plugs that are migrating up the hole. â&#x20AC;&#x153;This is a 100 per cent engineered product,â&#x20AC;? said Mallett. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s the type of product that our Edmonton and Houston based engineering staďŹ&#x20AC; are working on. â&#x20AC;&#x153;From top to bottom, itâ&#x20AC;&#x2122;s been engineered with all of the quality control procedures followed. â&#x20AC;&#x153;We are going to be putting a huge focus on these types of wells.â&#x20AC;?

Mallet said Logan Completion is well positioned for new opportunities in the thermal market. â&#x20AC;&#x153;We are developing other new product lines for thermal SAGD applications â&#x20AC;&#x201C; itâ&#x20AC;&#x2122;s going to be kind of the wave of the future for the Lloydminster area,â&#x20AC;? he said. Logan Completion also oďŹ&#x20AC;ers ďŹ&#x201A;ow control, thermal completions and custom tool design and development services and related products. â&#x20AC;&#x153;We are doing our best to cover all aspects of our ďŹ eld,â&#x20AC;? said Mallett. Logan Completion has also launched a new X-Span permanent casing patch for the heavy oil market along with a new external casing packer and stage tools. â&#x20AC;&#x153;Once we hit the market with the thermal SAGD 8-5/8-inch and 9-5/8inch liners thereâ&#x20AC;&#x2122;s another big market to be had there,â&#x20AC;? said Mallett. Logan has locations throughout Western Canada including Kindersley and Estevan in Saskatchewan and Brooks, Lloydminster, Red Deer, Calgary, Edmonton, Grande Prairie and Bonnyville in Alberta. Logan opened a new Logan Oil Tools sales and distribution centre in Edmonton last August.

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PIPELINE NEWS March 2012

Kenworth Lloydminster - A Division Of Edmonton Kenworth Ltd. 6101 - 63 Avenue, Lloydminster, AB T9V 3C1 Tel: (780) 871-0950 Fax: (780) 871-0926

2012 Kenworth T800 Extended Daycab

2012 Kenworth T370 Garbage Truck

2012 Kenworth T370 Daycab

Gravel Box Spec Chassis - 15 Foot Midland SK1000 Gravel Box with pintle

Rear Loading - Packer 25 cu-yd Rear Loader - Installation by London Machinery Inc.,

Mechanics Body W/ Chassis - Full Tilt Dominator Mechanics body with

plate and electric tarp - Full Truck kit for pup trailer, Cummins 525 HP Engine, Eaton Super 18 speed Manual transmission, Dana Spicer 20K Front Axle, Dana Spicer 46K Rear Axles with AG460 rear air suspension, forward and rear axle lock-up with crosslock, 10 3/4â&#x20AC;? x 3/8â&#x20AC;? Frame rail, 135 gallon fuel tank with 7â&#x20AC;? polished support straps and 75 gallon hydraulic tank equipped, Alcoa Polished Aluminum rims with Michelin tires front and rear locations, Metton sloped split fender hood, Diamond cab interior with equipped with quiet cab package and linkmate suspension, full gauge package, A/C, Tilt and telescopic steering wheel, (Satellite,am/fm,cd radio) with 4 high performance speakers, daylite design cab doors with peeper window, High back cloth air cushion drivers seat and high back cloth toolbox passenger seat, Lighted and heated mirrors with convex mirrors, manual LH window with power RH window, Two piece roped in style curved glass windshield with stainless steel sun visor, Dual rectangular extended life halogen head lamps, Dual amber Beacon lights and dual air horns

Paccar PX 8 300 HP Engine, Allison 3500 Rugged Duty Series 6 speed Automatic Transmission, Dana Spicer 14.6K Front axle with taperleaf spring suspension, Dana Spicer 40K Rear axles with Hendrickson HMX400 air suspension, forward and rear axle differential locks, Air brakes with ABS, 10 5/8â&#x20AC;? x 5/16â&#x20AC;? steel frame with partial inserts, 56 gallon fuel tank, Accuride Painted White wheels with Bridgestone steer and drive tires, Aerodynamic sloped hood, Pinnacle cab interior with Kenworth Driver Information Center, A/C, Cruise, Tilt and Telescopic steering wheel, am/fm radio, power RHS window and manual LHS window, Daylite cab door design with peeper window, glove box, High back vinyl air suspension drivers seat and 2 man vinyl bench passenger seat, Aerodynamic Heated Moto Mirrors with Fender Mounted convex mirrors, exterior sunvisor with integral marker lights, Dual halogen head lamps, circuit breaker style electrical system, May not be exactly as shown.

Gravel Box Truck -15 Foot Midland SK1000 Gravel box with pintle plate and electric tarp - Full Truck kit for pup trailer, 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 40K Rear axles with HAS402 air suspension, forward and rear axle lock-up differential, Air brakes with ABS, 10 5/8â&#x20AC;? x 5/16â&#x20AC;? Frame rail, 100 gallon fuel tank, Accuride painted white rims with Bridgestone steer tires and Goodyear drive tires, Aerodynamic sloped front hood, Pinnacle Cab Interior equipped with Kenworth Driver Information Center, A/C, Cruise, Tilt and Telescopic steering wheel, power windows and door locks, am/fm Radio, daylite cab design doors with peeper window, glove box, air suspension and air application gauges, High back vinyl air cushion drivers seat and high back vinyl toolbox passenger seat, Polished stainless steel heated mirrors with convex mirrors, curved glass windshield with stainless steel exterior sun visor, Dual halogen headlamps, dual amber strobe lights centered over doors, circuit breakers style electrical system

sliding roof and barn doors, interior lights, front and rear work lights, back-up alarm, posi lock system, heavy duty tie down. 10,500 lb Max 6025 crane with lift to 26â&#x20AC;&#x2122; 7â&#x20AC;?, Hydraulic drive reiprocating air compressor 35 CFM @ 100 psi, Paccar PX8 300 HP Engine, Allison 3500 RDS 6 speed with PTO provision, Dana Spicer 14.6K Front axle, Dana Spicer 23K Rear axle with diff lock and Hendrickson HAS230L rear air suspension, Air brakes with ABS, 10 5/8â&#x20AC;? x 5/16 Frame rail with removalble front tow hooks, 56 gallon fuel tank, Accuride painted white rims with Goodyear tires front and rear locations,Aerodynamic sloped front hood, Pinnacle cab interior equipped with Kenworth Driver Information Center, A/C, Tilt and telescopic steering wheel, air suspension gauge, am/fm/cd radio, daylight cab door design with peeper window, glove box, High back vinyl air suspension drivers seat and high back vinyl passenger battery box, Heated and polished stainless steel mirrors with convex mirrors, power LH and RH window lifts, Curved glass windshield with stainless steel exterior sunvisor, Dual halogen headlamps, Full truck air kit for trailer. May not be exactly as shown.

2012 Kenworth T370

2012 Kenworth T370 Daycab

2012 Kenworth T470 Daycab

2012 Kenworth T170

(Specâ&#x20AC;&#x2122;d for Knuckle Boom Picker Crane - slated for Full Tilt rig-up - slot allocated) - Chassis is professionally specâ&#x20AC;&#x2122;d to receive Fassi 150, 170 or 210 size-class

Gravel Box Truck - 15â&#x20AC;&#x2122; Bibeau MHD Gravel Box installed by Commercial Truck Equipment

Roll Off Truck - Universal Handling Equipment 60,000 lb Single Stage Roll Off Hoist - 23â&#x20AC;&#x2122;

Co., Paccar PX 8 300 HP Engine, Allison 3500 Rugged Duty Series 6 speed automatic transmission, Dana Spicer 14.6K Front axle with taperleaf spring suspension, Dana Spicer 40K Rear axles with HAS 402 air suspension, forward and rear axle lock-up differential, Air brakes with ABS, 10 5/8â&#x20AC;? x 5/16â&#x20AC;? Frame rail, 100 gallon fuel tank, Polished Alcoa wheels with Goodyear steer and drive tires, Aerodynamic sloped front hood, Pinnacle Cab interior equipped with A/C, Cruise, Tilt and Telescopic Steering wheel, Power windows and Door locks, Daylite doors with peeper window, glove box, air application gauge and air ďŹ lter restriction gauge, High back cloth air suspension drivers seat and high back cloth toolbox passenger seat, polished stainless steel heated mirrors with convex mirrors, Stainless steel exterior sun visor with 2 piece roped in windshield, Dual halogen head lamps, circuit breaker style electrical system

6â&#x20AC;? bed, 45 Degree Tilting Angle, Paccar PX 8 330 HP Engine, Allison 3000 Rugged Duty Series 6 Speed Automatic Transmission, Dana Spicer 20K Front axle with 18K taperleaf front spring suspension, Dana Spicer 40K Rear axles with Primaax EX air suspension, forward and rear axle lock-up, Air brakes with ABS, 10 5/8â&#x20AC;? x 5/16â&#x20AC;? Frame Rails with full steel insert, 100 Gallon fuel tank, Alcoa front wheels with Painted white rear wheels, Bridgestone M8444F Steer tires and Goodyear G182 Drive tires, Split fender sloped hood design and radiator mounted grill, Summit cab interior equipped with Kenworth Driver Information Center, A/C, Cruise, Tilt and Telescoping Steering wheel, air suspension gauge, ammeter gauge, PTO hour meter, am/fm/cd radio, Daylite cab door design with peeper window, Electric door locks, Powered RHS window manual LHS window, Mid-rise back vinyl drivers seat with air suspension and Mid-rise back vinyl passengers seat with toolbox, Polished stainless steel lighted and heated mirrors with convex mirrors, 2 piece curved glass roped in windshield with integral marker light exterior sun visor, Quiet cab package, Dual halogen head lamps and circuit breaker style electrical system

Daycab Chassis - Ideal for Flat Deck, Van Body, OilďŹ eld Service body w/small Fassi 95 picker size crane - white in color, 66166 km on chassis currently, Paccar PX 6 300 HP engine - Pre Diesel Exhaust Fluid Emissions Engine, NEW Eaton Fuller FSO6406A 6 Speed Synchro manual transmission, Dana Spicer 8K front axle with taperleaf spring suspension, Dana Spicer 13.5K rear axle with limited slip 3.73 gear ratio differential and Reyco taperleaf rear spring suspension, Hydraulic brakes with ABS, 9 7/8â&#x20AC;? x 1/4â&#x20AC;? Steel Frame Rails, 219â&#x20AC;? Wheelbase - 151â&#x20AC;? Cab to axle, Low proďŹ le Bridgestone tire with Painted white rims, Aerodynamic sloped front hood, Wood grain trimmed dash with am/fm/cd, A/C, cruise and tilt telescopic steering, Power windows and locks, daylight cab door design with peeper window, glove box, High back cloth air suspension drivers seat with mid back 2 man bench cloth passengers seat, Curved glass windshield with stainless steel exterior sun visor, Dual halogen head lamps

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 5/8â&#x20AC;? x 5/16â&#x20AC;? 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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A21

A22

PIPELINE NEWS March 2012

Creative marketing puts Provost on map Provost, Alta. – Welcome to the town of milk and honey called Provost, Alberta, where opportunity knocks for high paying oilfield jobs, new business startups and families in pursuit of the good life. The new $12.3 million Crescent Point Place Regional Activity Centre, the Provost Health Centre hospital and nursing home, two school systems and plenty of affordable lots for residential, commercial and industrial development make Provost an attractive place to live and work. The region is expected to have a low unemployment rate of 3 to 3.5 per cent in 2012, led by oil and gas and agriculture. “Since January 2011, our local newspaper has had anywhere from five to 10 pages of jobs a week listed in the classified ad section,” said Bert Roach, economic development officer for the town. “I know a lot of oilfield servicing guys – they seem to be the companies that are really looking for employees right now. It seems that anything that can be in production pretty much is. “We just need more people. We simply have more work and more jobs than can be filled locally. It’s a very exciting thing for an economic development officer to see.” A new Provost website is up and running to market opportunities in the central region including the villages of Amisk, Czar and Hughenden and the MD of Provost which includes the hamlets of Bodo, Hayter, Cadogan and Metiskow. The MD also has a website and Roach is planning the development of a new regional website in 2012 to promote the full economic and tourism potential of the area. Tyler Lawrason, administrator of the MD says even during the previous downturn, the dedicated infrastructure of the tank farm at Rosyth near Hardisty was largely unaffected. “Right now, on an average month, we are doing about 250 overload approvals throughout permitting system. That would be rig moves, service rigs and oilfield related stuff,” he said. “That’s quite a bit of activity and that just the overloaded stuff.” The route of the proposed Keystone XL pipeline extends 69-kilometres Provost Mayor Ken Knox keeps his Įnger on the pulse of the local oil and gas economy through the MD and would add to the tax assessment base. wearing his HR/safety coordinator hat for Maverick OilĮeld Services Ltd. Knox says the “We are seeing some power line development and some wind generation town is focused on aƩracƟng new workers and investors to the area. A new wind devellooks to be forthcoming,” said Lawrason who notes potash exploration is also opment is expected to get under way this year in the MD of Provost where some potash taking place in the area. ɸ Page A23 exploraƟon is also taking place.

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PIPELINE NEWS March 2012

A23

The $12.3 million Crescent Point Place Regional AcƟvity Centre that opened in Provost in 2010 has allowed the town to host major hockey and swim events. The centre is also a key draw to aƩract new families and workers to the community. Approximately $2.5 million dollars of the total cost was raised through donaƟons from corporaƟons and individuals in the area.

Bert Roach, economic development oĸcer, played a huge role in enƟcing Hollywood Įlm director and actor Corbin Bernsen to shoot a movie in Provost called Barlowe Mann due to be released this spring. Roach plays a character in the Įlm called Nolan. The community created a producƟon company to help fund the Įlm shot enƟrely in Provost last March.

ɺ Page A22 “We have a lot of development, but not a lot of people in the MD proper. Attracting people to the area is the biggest component. “Our tax rate is attractive for industrial land and it’s exceedingly attractive for residential. There is a good transportation system and not a lot of red tape slowing up your ability to develop. “As a government we are committed to staying out of the way of people who want to take advantage of those opportunities.” A community survey conducted by the Provost Business community and the economic development office cites the need for a new grocery store, an auto dealer and more clothing stores in the Provost region. “I have always said that my job is to be the town and the area salesman,” said Roach. “This year, what we focused on is kind of a sales based approach to economic development. “For a lot of folks that have never been here before, the first time they see us is going to be on the Internet. “That’s been kind of our focus to make sure we’ve got the best information and materials out there about our community. “If people spend a little bit of time on our website there’s a video, a survey and we’ve just finished getting our business directory updated. “The website has become our main marketing tool. We are also looking at supplementary advertising that would drive traffic to the website.” A new Hollywood family movie called Barlowe Mann filmed in Provost last March should also help to put the town and its folksy lifestyle on the global map when it’s released this spring. The film website states the town reached out to director and actor Corbin Bernsen to scope out the possibility of shooting a movie filmed entirely in Provost. “We set up a local production company and there were local private partners involved and we worked with Corbin’s production company on the script,” said Roach who plays a character in the film called Nolan. Nolan’s key line to the mayor whose first name is Bert is, “I’m here, good to go, Bert.” ɸ Page A24

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A24

PIPELINE NEWS March 2012

Provost in the spot light

Kevin McGillivray, Įeld operaƟons manager for Crescent Point, is one of several residents in Provost who invested in a community producƟon company to help fund the making of the family movie Barlowe Mann to be released this spring.

ɺ Page A23 The film project dates back to Roach’s time in 2006 when he was the economic development officer in Kipling, Saskatchewan. Roach was tuned in to the quest of blogger Kyle MacDonald to trade up his red paper clip for a house. Roach convinced Kipling town council to purchase an old house on Main St. in exchange for MacDonald’s second last trade – a role in a Corbin Bernsen movie. “I found out about this in the middle of June, and we made the trade July 12, 2006, one year to the date when Kyle started his trades,” said Roach. Bernsen came to Kipling, liked what he saw, and inspired the community to raise money to help produce the movie Rust released in the fall of 2009. “With me moving to Provost, Bernsen tracked me down and asked me what’s special about Provost? In 2010, we started to put together a project to make a movie here.” The creative marketing of Provost doesn’t stop there, however. “Dreams create the future” is the slogan of the economic development office that brought Kyle MacDonald and others to Provost last fall to support and inspire local innovators and entrepreneurs. A similar event will be held in the fall of 2012 to put the spotlight on

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the opportunities that exist in Provost. Mayor Ken Knox hopes the publicity might help ease a tight labour crunch in oil and gas industry in the region. “Finding workers with some knowledge in the industry is very tough,” said Knox who works as a HR/safety manager for Maverick Oilﬁeld Services Ltd. “We have having a hard time to recruit people. I think that’s due to the fact a lot of people used to come to our area from Saskatchewan and now they are busy. “We have a fair amount of residential and commercial property and we have to get out there and entice some people to choose Provost as a place they want to locate to or construct something.” The town has 58 serviced house lots in the Paulgaard Estates with room for an addition 80 lots. Buyers can get up to a 20 per cent discount on the lot price if all permit and construction timelines and conditions are met. The town also a number of prime serviced highway commercial and industry lots for sale with three lots sold to date fronting Highway 13. “We have a few people out there that are looking right now and are expressing some interest in Provost and hopefully that interest turns into a reality for us,” said Knox, who has been mayor for more than 25 years.

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PIPELINE NEWS March 2012

A25

Lloyd oilmen to rock March 14-18 Lloydminster – If you receive a phone call or an e-mail from John Stanyer or Monte Armstrong, don’t hang up or hit the delete button. These guys are not telemarketers, but lead organizers of the 45th annual Lloydminster Heavy Crude Open Bonspiel. They may be contacting you to seek donations and sponsorships or to remind you of the team entry deadline of Feb. 25. Stanyer is the event chairman and Armstrong is the bonspiel president and skip of the Granite Oilfield Services team that was beaten in the A-Event final last year by McAllister Drilling. The 2012 tournament will take place March 14-18 at the Communiplex and can accommodate up to 96 teams with eight events. Drawing that number of teams however, is not likely, said Stanyer given the smaller turnout the last few years along with competing interests of modern day living. “We just kind of got started,” he said on Feb. 13. “Our entries have only been out for about three weeks. We’ve been down the last couple of years. “I don’t think we will get 96 again. Last year, we had 71 teams. We had one team bail out at the last minute. “I think part of it is a lot of younger guys have family things to do and that kind of stuff. We will see anyway.” Stanyer admitted he won’t be playing this year with his usual Weatherford pals – but for good reasons. “Our team kind of disbanded,” he said. “It’s one of those things – I would still like to curl but after every game a guy hurts so much – I can’t get up for it anymore.” He later joked, “I would still like to curl, but all the stupid stuff I did to myself over the years is catching up to me! “I am going to be doing my committee duties.” Stanyer said one of the keys to running the event is retaining a core group of committee organizers from one year to the next. “You still have to put your hours in, but everybody knows what they need to do,” he said.

Stanyer said there has never been any problem attracting major sponsorships and noted “we will wait to see what happens with donations” in this boom year for the oil and gas industry. This year’s entry fee is $440, the same as last year, with a guarantee of four games. The fee includes four tickets to the banquet/dance at the Stockade Convention Centre and the introduction of this year’s Oilman of the Year, Norval Christie. The curling starts March 14 with the opening ceremonies on March 15, at 6:30 p.m.

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A26

PIPELINE NEWS March 2012

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PIPELINE NEWS March 2012

A27

Border Kings’ prez on a breakaway Lloydminster – Owen Noble is on a major breakaway at work and at play in 2012. Noble has recently been promoted to assistant manager in charge of safety and compliance at Northwell Rentals Inc. in Lloydminster, a company that offers a full line of service rig rental equipment such as power swivels, power tongs, drill collars and annulars. Noble played a leading role in helping Northwell obtain its certificate of recognition or COR safety standard following the company’s move into its new building in 2010. “When I came on board they didn’t have their COR,” said Noble. “We just finished getting that done.” Noble is fortunate to work under the leadership of operations manager Dave Heck who advocates community involvement and support of local sports teams. That duty is willingly served by Noble who is president of the Border Kings senior men’s hockey team that competes in the Chinook Hockey League. This year, Noble is also one of three co-chairs leading the organization of the 2012 Raider Well Servicing Allan Cup national senior AAA hockey championships. The others are Barry Gunn and Brent Dallyn. The Border Kings will put up a challenge as the host team at the Lloydminster Centennial Civic Centre Arena April 16-21. The common element on Noble’s work/play rush is Northwell’s sponsorship support of the Border Kings throughout the season and the team’s entry in the upcoming 104th Allan Cup. The company posted the winning $7,000 bid at a skybox auction. It will allow 10 employees and clients to cheer on the Border Kings in comfort during the 11-game cup series to be contested by six teams. “They have no trouble with the time I take off work to look after this,” said Noble about Northwell. “That means a lot for them to just let me go free rein and work on this stuff provided my work is done here. “We strive for community involvement. We are very good in the community. We support a lot of other amateur sports.” Noble and the Border Kings also applaud the outstanding commitment of Raider Well Servicing Ltd. and their purchase of the naming rights for this year’s Allan Cup championship. One of Noble’s tasks as an event chair is to contact a lengthy list of like-minded oil and gas companies to sell up to 140 tables for eight at $800 apiece for the Allan Cup luncheon. The lunch, to be held at the Lloydminster Exhibition Grounds on April 18, will feature guest speakers and former NHLers Brett Hull and Kelly Chase. “We are kind of doing a mad sales blitz in February,” said Noble during an interview on Jan. 19. “We hope to sell 140 tables. If we figure we are not going to come close to 140, then we will move it to a smaller room at the exhibition. “We had a meeting the other day, and we went through a big list of oil companies. I have my list that I will start hitting today and see what we end up with for tables.” ɸ Page A28

Owen Noble, recently promoted to assistant manager at Northwell Rentals in Lloydminster, values his company’s commitment to local sports teams and community involvement. Noble is the president of the Lloydminster Border Kings senior AAA team and is a co-chair on a commiƩee bringing the 2012 Raider Well Servicing Allan Cup to the city April 16-21.

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A28

PIPELINE NEWS March 2012

This years team could go all the way Éş Page A27 Border City Concrete, Courtesy Air, Hurricane Industries Inc. and Mikeâ&#x20AC;&#x2122;s Oilfield Services Ltd. are the main sponsors of the luncheon. Noble said Dow Trucking Ltd. is sponsoring a cup beer tent while Rusway Construction Ltd. deserves a mention as a major supporter of Border Kingsâ&#x20AC;&#x2122; sweaters. Fundraising is critical to offset the cost of hosting the provincial championship teams including the $140,000 that Hockey Canada estimates Lloydminster needs just to cover the airfare and hotel rooms for the visiting teams. Lloydminster previously hosted the cup in 2000 and 2005 and Noble expects they

will do more than just cover costs this year in a hockey-mad city of oil and gas supporters and players. â&#x20AC;&#x153;If this year is anything like the other two years, it is so well attended,â&#x20AC;? said

Noble. â&#x20AC;&#x153;With the hype around town, we never worry about making our money back. â&#x20AC;&#x153;When you talk about the Allan Cup everybody thinks back to 2005 when it was perfect. Everything

went good. The only thing that wasnâ&#x20AC;&#x2122;t, was the way we played hockey.â&#x20AC;? The Border Kings won the Allan Cup in 2001 and 2007, but in 2005, they were knocked out in the

quarter-finals. In the 2000 host year, the Kings came up short in the cup final, but this yearâ&#x20AC;&#x2122;s team could go all the way. They ended their regular season in first place. â&#x20AC;&#x153;I am not going to

Border Kingsâ&#x20AC;&#x2122; players limber up before their game against the Sylvan Lake Admirals in Chinook Hockey League acĆ&#x;on at the Lloydminster Centennial Civic Centre Arena on Jan 21. The Kings won to clinch ÄŽrst place in regular season play. Next up are league playoÄŤs, then provincials with an automaĆ&#x;c berth in the 2012 Raider Well Servicing Allan Cup as the host city team.

go out on a limb and say we are going to win,â&#x20AC;? said Noble. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;ve been building all year and weâ&#x20AC;&#x2122;ve got to a point where I like what we have. Itâ&#x20AC;&#x2122;s just a matter of getting everyone together and piecing it together one step at a time.â&#x20AC;? Noble said the job as a tournament cochair is hard work, but he enjoys every minute of it. â&#x20AC;&#x153;The excitement and the adrenalin of going forward and trying to win another cup and knowing we are close â&#x20AC;&#x201C; that all kind of blends together,â&#x20AC;? he said. The Border Kings will skate into the Raider Well Servicing Allan Cup following their Chinook League and provincial playoffs. É¸ Page A29

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PIPELINE NEWS March 2012

A29

Kris Westblom puts on his pads prior to a home game against the Sylvan Lake Admirals. Westblom works for Husky Energy and is one of several Border King players employed in the oil and gas industry in Lloydminster.

Many sponsors want in hockey. Everybody’s got a job to go to when they go home. Nobody’s making the big bucks.” Noble said the 2005 Allan Cup was a windfall for the Border Kings and he expects this year’s Raider Well Servicing Allan Cup to generate additional money for the team. “We used this money in 2005 to keep our team going,” said Noble. “We are lucky that with this program we don’t have to do any major raﬄes or stuﬀ like that.

ɺ Page A28 Meanwhile, support for the sponsored $1,500 platinum or $1,000 gold ticket packages for this year’s tournament that include an Allan Cup jacket and program recognition are on target for a sellout. Individual ticket packages are $250 for all 11 games, with reserved seating with bench and standing room ticket packages available for $200. Tickets including individual game day tickets are available at Shep’s Sports Centre. Noble says most of the ticket sales are coming from oilfield employees and employers who support the team during the regular season play. “We’ve got guys on the team who work in the oilpatch,” said Noble. “The program guide is packed with oilfield ads. I have no complaint at all. The town stands behind them. They are the clientele who like watching senior hockey. “Times are good and oil is booming. That will make it much easier. Even in the slow times, it just seems like people revolve around senior hockey. “It’s great hockey; I have witnessed a number of Allan Cup championships. We have hosted two and played about eight in different towns, and we won two different championships. “It’s very good hockey. This is workingman’s

“The sponsorship is kind of wrapped up. I’ve had people phoning and wanting to sponsor us, but I am running out of things to give them. “We are getting calls from companies that want to sponsor at the last minute. It’s good but it’s bad in a way – I hate turning away money. “I haven’t ruled them out yet because there are places where we can put up banners. If they want a banner on display at the Allan Cup, we can make it work,” Noble said.

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A30

PIPELINE NEWS March 2012

5 year service award for Ben

5 year service award for Mike

5 year service award for Brandon

5 year award for Anwar

L-R:Nathan Knorr (Lloydminster Electrical Manager), Ben Knorr (Journeyman Electrician), Guy McCrea (Operations Manager)

L-R: Cam Zarowny (President & CEO), Mike Little (SCADA Host Developer), Wendell Young (VP, Corporate Development)

L-R: Guy McCrea (Operations Manager), Brandon Graff (Lloydminster Instrumentation Manager), Cam Zarowny (President & CEO)

L-R: Cam Zarowny (President & CEO), Anwar Mangla (IT Manager), Wendell Young (VP, Corporate Development)

10 year service award for Chad

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5 year service award for Leana L-R: Cam Zarowny (President & CEO), Leana Ross (Controller), Nichol Berg (Executive Assistant to CEO)

5 year service award for Nolan L-R: Guy McCrea (Operations Manager), Nolan Wirth (Lloydminster Shop Foreman), Brandon Graff (Lloydminster Instrumentation Manager)

L-R: Nathan Knorr (Lloydminster Electrical Manager), Chad Sturge (Senior Project Manager), Guy McCrea (Operations Manager)

L-R: Guy McCrea (Operations Manager), Jason Qually (Measurement Compliance Coordinator), Cam Zarowny (President & CEO)

5 year award: 1 week all-inclusive travel voucher to a destination of their choice

10 year award: 2 week all-inclusive travel voucher to a destination of their choice 10 year service award for Wayne L-R: Cam Zarowny (President & CEO), Wayne Smith (Quality/Safety Manager), Nichol Berg (Executive Assistant to CEO)

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15 year award: 3 week all-inclusive travel voucher to a destination of their choice Noralta Technologies Inc. is an established, technological leader, with branches in Lloydminster, Bonnyville, Provost, Red Deer, Lac La Biche, Hardisty, Red Earth Creek, Grande Prairie, Estevan and Calgary.

10 year service award for Jean-Marc L-R:Brandon Graff (Lloydminster Instrumentation Manager), Jean-Marc Comeau (Journeyman Instrumentation Tech), Guy McCrea (Operations Manager)

We are currently seeking applicants for the following positions: Electricians (journeyman and apprentices) Instrumentation Mechanics(journeyman and apprentices) Automation Specialists Control Centre Operator Noralta offers competitive remuneration and an excellent beneÀt package with immense opportunity for technical and managerial growth. Send resumes to:

Noralta Technologies Inc. Attn: Human Resources 15 year service award for Guy L-R: Nichol Berg (Executive Assistant to CEO), Guy McCrea (Operations Manager), Cam Zarowny (President & CEO)

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PIPELINE NEWS March 2012

A31

Raider Well steps up By Geoﬀ Lee Lloydminster – Hockey is all about scoring goals, but it can also be a way to make a point for community involvement. That belief is shared by Marty Stephen, owner of Raider Well Servicing Ltd. in Lloydminster, a company that operates a ﬂeet of 12 service rigs specializing in workovers, completions and abandonments. Stephen is a diehard hockey fan and player who purchased the naming rights for the Raider Well Servicing Allan Cup national senior AAA men’s hockey championships that the city will host April 16-21. He did it knowing the local Border Kings, who won the cup twice before in 2001 and 2007, will attract the most attention as the home entry and fan favourite when the puck drops at the Lloydminster Centennial Civic Centre Arena. TSN2 will televise the gold medal game. “There’s lot of ways to support the community

in advertising,” said Stephen. “This brings lots of people to town. As a company, it shows that we get our support from local companies in town, so it’s nice to give back. “I think it’s going to draw people from a big area. Hockey is kind of our nature. It’s nice to be a part of something that only comes around once every ﬁve or six years. It’s nice to give back to the community.” The naming rights for the Raider Well Servicing Allan Cup include the exclusive use of a skybox for their employees and customers to cheer the Border Kings on in comfort during the six-team tournament. Stephen has been a sponsor and an avid fan of the Border Kings and other minor hockey teams since setting up shop 17 years ago. “I think right from the get-go I have always been a strong supporter of all hockey. I am kind of a hockey nut,” he said. ɸ Page A32

Marty Stephen calls himself a “hockey nut” and why not? Stephen plays with the Neversweats old-Ɵmers’ team in Lloydminster and he owns a player’s stake in this team bus parked at his Raider Well Servicing shop. He is also a perennial supporter of the Border Kings senior AAA men’s hockey team that will compete in the 2012 Raider Well Servicing Allan Cup in Lloydminster April 16-21.

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A32

PIPELINE NEWS March 2012

Hockey, the ideal icebreaker ɺ Page A31 “I play a lot and I was always involved in coaching kids in minor hockey and all the way up. It’s a win-win. “You’ve got your golﬁng and curling and hockey season, and I favour the hockey. If I am going to support something, I would like

to see the hockey end growing.” Stephen plays hockey for the Lloydminster Neversweats old-timers, and he purchased his share in a team bus that is parked at Raider Well Servicing, ready to drive the gang to out of town games.

To Stephen, hockey is also an ideal icebreaker or opportunity to establish new business connections in the busy world of the oil and gas industry. “The way the world has been, it’s really hustle and bustle. It seems there is no time for anything left,” he

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said. “I think hockey – you work your 10 or 12 hours a day and sometimes it’s nice to get together with people you can’t always have lunch with. “Sometimes it’s better to go out and play hockey and after the game is usually a good festive time to hang out with some guys.

“Getting out to the arenas and meeting people and walking the corridor is a good way to intertwine. Everyone is usually gathered at the arena because hockey is Canada’s number one game I guess,” Stephen said. Raider Well Servicing is one of many local oil and gas companies in Lloydminster that help to sponsor

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the Border Kings with its added benefit of drawing new players to the city in search of jobs – with local and sponsoring companies. It’s not a stretch, says Stephen, to say that in Lloydminster at least, hockey and the oil industry go together like a stick and tape. “It’s a demanding game, and it’s the same with the oilfield; it’s demanding work. You have to be strong and tough to survive. I do believe they do go hand in hand,” he said. Champion Technologies, Hunting Energy Services, Cave Inspection, Classic Oilfield Service, Husky Energy, V-Tech Energy Solutions and Gower & Co. Vegetation Management are just some of the oilfield companies Border Kings players work for.

ɸ Page A33

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PIPELINE NEWS March 2012

A33

Marty Stephen, owner of Raider Well Servicing, boosted his perennial support for the Lloydminster Border Kings senior AAA men’s hockey team by purchasing the naming rights for the 2012 Allan Cup to be called the Raider Well Servicing Allan Cup coming to Lloydminster April 16-21. Six teams will compete for the naƟonal senior men’s hockey championship. Pictured are team sweaters inside the Kings’ dressing room at Centennial Civic Centre Arena, the venue for cup compeƟƟon.

ɺ Page A32 Raider Well Servicing is also in the market for new workers, some of whom may be looking for the opportunity to ply their hockey skills for the Border Kings. “Right now, we’ve got 12 service rigs and are at almost full capacity. Like everyone else, we are struggling for people. We would like that end to get better and better,” said Stephen. “It’s very good right now. We’ve come oﬀ a slow time so we are just ramping up again. It feels good to get back in the swing of things. “It’s nice to have all of your employees with smiles on their faces going to work every day and making those payments. “The biggest thing I believe in is that if you show support to the community, we should be able to get some support back to us. You have to

support the town you work in as well,” said Stephen. “I know before taking on the major sponsorship of the team, I talked lots with Kent Staniforth, the head coach, and found out what the team had to do to prepare for the players to come to ﬁnd homes and jobs. “We need people to work and the economy has always been pretty stable around Lloyd. That does bring more people to the plate. They are good hockey players and they can make Lloydminster their home too.” The 2012 Raider Well Servicing Allan Cup will be the third time Lloydminster has hosted the national senior men’s hockey championships and Stephen thinks the Border Kings are a cup contender. “Their chances are very good. They are sitting in ﬁrst place right now. “I sure hope they have a good

round. He (Staniforth) has a good group of guys on this team. It looks very promising,” said Stephen. The team president is Owen Noble from Northwell Rentals. Noble shares with the task of cochairing the cup organizing committee with Barry Gunn from KFC and Brent Dallyn from Harvest Energy.

“The whole town has always been really supportive,” said Stephen. “I feel honoured that I was able to get the major sponsorship. There are a lot of good sponsors and good companies in town that we can compete with and they are actually all good friends. I like the way the community is all knitted together.”

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A34

PIPELINE NEWS March 2012

Titus raises safety bar on tubing hangers By Geoﬀ Lee Lloydminster – Titus Tools Inc. has built a better mousetrap of sorts with its two piece Safety Torque Tubing Hanger that is safer and easy to install or dismantle than existing tubing hangers. The product features an inner mandrel with a left hand thread that service rig crews can quickly install with power tongs to the correct torque speciﬁcation. The use of power tongs eliminates the potentially dangerous use of pipe wrenches, winch lines and snipes used to install traditional tubing hangers. The second piece, which is an outer shell, is mounted by hand and tightened with a 50,000 ft.-lb. set screw. “This completely eliminates all pipe wrenches, all winch lines and all snipes,” said Tracy Klotz, president and owner of the Lloydminster-based

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company. “Sales have been absolutely tremendous. We are coming up to having almost 2,000 of these hangers in the ground.” Titus designs and manufactures new completion products and technologies that improve safety and reduce time on a well. The company’s growing product line includes an improved Safety Torque Tubing Drain – another tong friendly product, and a coated rod shear that prevents premature wear on tubing. “Between our safety hanger and our safety drain, we are counting on almost 5,000 tools in the ground,” said Klotz. “As we continue to design our tools, what we are trying to do is – the more we come up with effective tools, the less time rig crews are on the well – which should be creating greater safety. “Our motto here is ‘less time on the well equals greater safety and less cost.' “We can have this tubing hanger installed in less than 30 seconds.” Klotz said the idea for the Safety Torque Tubing Hanger came from comments by the service rig industry about winch lines, pipe wrenches and snipes frequently breaking. “We wanted to come up with something that would eliminate those and cause less injury and hazards around the wellhead,” explained Klotz, who noted another benefit of the product is more production time. “If you look at the thousands of rig jobs that are being done – if you can save 20 minutes to a half an hour each time you take the hanger in and out of the well – the numbers speak for themselves.” The only tools needed to install the two piece Safety Torque Tubing Hanger is a set of power tongs to install the inner mandrel and the Y-tool hanger wrench that it comes with to tighten the set screw on the outer shell. “It’s so simple,” said Klotz, who noted a pup jack is the only additional device needed to take the tubing apart. A sanded tubing feature allows the outer shell to be removed and allows movement of tubing downward and upward. This feature eliminates low lying slips, tubing spears and allows for an easy installation of a blow-out preventer when tubing is sanded in heavy oil applications. Titus can retrofit any competitor’s tubing hanger to fit the inner mandrel with a cost savings of 25 to 30 per cent for the customer. ɸ Page A35

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PIPELINE NEWS March 2012

A35

Titus Tools president Tracy Klotz says sales of his company’s two piece Safety Torque Tubing Hanger (patent pending) have topped the 2,000 unit mark. Titus designs and makes compleƟon tools that increase safety and reduce Ɵme on the well.

surface division. We do a tremendous amount of production with this pump.” Klotz said when it comes to marketing new products such as the Safety Torque Tubing Hanger, sometimes it’s just being persistent that helps it sell. “When you know you’ve got some great tools and you know you have done your surveys and gone to people to get some sound advice – from that we knew we were on to something,” he said. “Because we own and design these tools, we are already in negotiation with some major distribution companies to have these tools sent around the world. “Some of our tools that we are manufacturing and selling are in Indonesia, Kazakhstan, China, Romania, England, France and Australia.” Klotz added that he will be launching some more oilﬁeld products this spring with more information to come.

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ɺ Page A34 Titus is also in the business of helping innovative individuals and companies to design, manufacture and market their own new oilﬁeld products and technologies. “I just want to remind everyone that we can take their design right oﬀ a dinner napkin – if they have an idea, we handle the patenting side of it, the testing, the creating and drawing side, and we also handle the marketing,” said Klotz. Titus was founded in 1997, but it has only been in the last three years that the company has found an open niche in the OEM or original equipment manufacturing market. “If you own the tools you have the say in them. We also market a tremendous number of other tools out there such as coated rod couplings,” said Klotz. “We also have another company called Yelo Pumps which is a pump to

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A36

PIPELINE NEWS March 2012

Oilsands Quest pursues Plan B Ànancing Calgary – Oilsands Quest is relying on Plan B to stay in business and avoid insolvency at all costs. The company has secured a commitment for CDN $3.75 million in debtor-in-possession (DIP) ﬁnancing to cover its operating costs and other expenses while proceeding with a previously-announced solicitation process under creditor protection. Oilsands Quest gained approval from the Alberta Court of Queen’s Bench on Jan. 12 to solicit oﬀers to acquire, restructure or recapitalize itself under the Companies’ Creditors Arrangement Act or CCAA. The company has recently entered into a pur-

chase and sale agreement with an unrelated thirdparty entity to sell its non-core Eagles Nest asset for $4.4 million. The purchaser has agreed to pay deposits of $300,000 by Feb. 21 with closing anticipated on or before March 23. The sale however, is conditional on Court approval and normal closing conditions and adjustments. TD Securities Inc. acted as ﬁnancial advisor to Oilsands Quest on the sale of Eagles Nest and will continue to assist the company with the ongoing solicitation process. The Eagles Nest prospect covers 22,773 acres

(9,216 hectares) located in the Athabasca oil sands region northwest of Fort McMurray, Alberta. Resource estimates for the property are available on the company’s website. DIP funding is being provided to Oilsands Quest by Century Services Inc. in accordance with terms and conditions of a commitment letter dated Feb 1. The DIP is subject to the completion of definitive agreements and Court approval, which the company expects to obtain by Feb 16, after which they will receive operating advances from the fund. DIP financing refers to financing provided to an insolvent debtor while it attempts to reorganize in accordance with applicable insolvency legislation, which, in the majority of cases in Canada, is the CCAA. Trading in the common shares of Oilsands Quest remains suspended until either a delisting occurs or until the NYSE permits the resumption of trading.

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WestFire Energy Ltd. said its fourth quarter production averaged 8,618 boepd a day, up 208 per cent over the same period in 2010 or a 46 per cent increase on a per diluted share basis. Production was hurt by a major battery expansion at Redwater, Alberta, which required the shutin of about 1,200 boe a day for 15 days in November, the company said in an operational update. WestFire has engaged its independent reserve evaluator to prepare its annual reserve report that is expected to be completed in early March. WestFire expects to release its fourth quarter and year-end results in late March. The company announced on Dec. 19 its board of directors had decided to initiate a process to identify, examine and consider a range of strategic alternatives available to the company with a view to enhancing shareholder value. WestFire expects to open a data room as soon as reasonably possible, which will include its independent reserves report. It doesn’t intend to disclose developments unless and until the board has approved a specific transaction or otherwise determines that disclosure is appropriate. The company has not established a definitive schedule to complete its identification, examination and consideration for completion of its strategic alternatives process. WestFire, which is primarily focused on light oil development and production in Alberta and central Saskatchewan, exited 2011 with field-estimated production of 9,300 boepd, of which 65 per cent was oil and liquids. Fourth quarter Viking production averaged 3,041 boepd and exited the year at 3,755 boepd. In addition, WestFire had 12 (nine net) Viking horizontal oil wells awaiting completion at year-end. During the fourth quarter, the company completed the balance of its 20-well Viking vertical core-hole program to better define reservoir characteristics on its extensive Viking land holdings at Redwater as well as at Plato, Saskatchewan. This program was successful in identifying areas of higher-quality reservoir, adding significant horizontal drilling inventory in the areas studied. Of the 115 (103.3 net) development wells drilled last year, 89 (77.5 net) were Viking horizontal oil wells at its core operating areas of Redwater (51 gross, 50 net), Provost (eight gross and eight net), Lucky Hills (21 gross, 10.5 net) and Plato (nine gross and nine net). WestFire currently has three rigs operating -- two at Redwater and one at Plato. These rigs are scheduled to drill 40 (35.5 net) Viking horizontal light oil wells during the first quarter of 2012.

PIPELINE NEWS March 2012 This year’s Oilman of the Year is Norval ChrisƟe, who was born in Lloydminster and raised on a farm 10 miles east of the city.

Lloydminster – Norval Christie is living proof it’s a small world if you have lived or worked in Lloydminster for awhile. His next door neighbour is John Stanyer, chair of the 45th annual Lloydminster Heavy Crude Bonspiel who knocked on his door to ask him to be this year’s Oilman of the Year. When Pipeline News paid a visit, Christie and his wife Lynda were packing their bags for a two week vacation with Tom Fisher, a past Oilman of the Year, and his wife Myrna. No doubt the vacation will give the two feted oilmen time to prepare for a possible roasting from Don Tarasuik, the comedic master of ceremonies at this year’s bonspiel banquet to be held at the Stockade Convention Centre March 15. Norval’s and Fisher’s comeback lines could date back to the very first oilmen’s bonspiel in 1968 when Tarasuik played third on a team skipped by Christie with Fisher as lead and Tom McKevitt as second. Christie’s oilfield biography is also likely to make note of the years when former Oilman of the Year, Howie Cayford was Christie’s boss at Husky Energy. Cayford died in December after curling in all previous bonspiels, leaving Tom Fisher, and past Oilmen of the Year Ted Collins and Keith Collinge as the only active members of that exclusive club. “I started working for Howie when he first came to Lloyd in 1966 and worked with him for four years until he left Husky and went to Border Drilling,” said Christie. “Howie was a production foreman for Husky and I was a battery operator.” “He was probably one of the greatest bosses I ever had, and he was a lot of fun to work with. If you did a good job for him, he really treated you well. He is going to be greatly missed.” The 74 year-old Cayford was president of the bonspiel committee from 1975 to 1979. Christie, who is now 67, admitted he hasn’t curled for many years, but wild horses can’t keep him from catching some of the on ice competition that runs from March 14-18. “It’s a great bonspiel. It’s really grown big. They run a good show. It brings people together from all over,” he said. “It’s good fellowship and it’s good curling.” Christie was born in Lloydminster and worked 31 of his 50 years in the oilfield for Husky Energy in heavy oil operations around the Border City. He landed his first job in 1961 with a contractor who was operating wells for Husky Oil in the Aberfeldy field. He left Husky for the first time in 1970 and went to Fort McMurray with a friend – to work for Great Canadian Oil Sands company that went on to become Suncor – and entered a team in the Lloydminster oilmen’s for two years. In 1972, Christie worked in Edmonton, operating units in the Strathcona Refinery for Imperial Oil, before returning to the Lloydminster area for good in 1973 as a battery operator for Husky. The short Coles Notes version of his career with Husky is one of constant promotion and work in different heavy oilfields. “I started off pumping wells then I began a battery operator and then I got promoted to a production foreman and to a field superintendent,” he said. “Then I went with a consulting firm, North Am

A37

Bonspiel's Oilman of the Year Energy Consultants. I did that for four years. “I went through lots of booms and busts with Husky, but I was never laid off or anything. “Husky went into a downsizing in 1994. They offered me a job, but I decided I was going to do something different. I had been there 31 years by then. “So that’s when I went consulting looking after rigs for various oil companies.” Christie said one of his most memorable moments at Husky was a fishing job that took over a month. “We ended up losing everything downhole,” he said. “They were all good years I had in. I enjoyed working around heavy oil with Husky.”

He also said his work overseeing a variety of Husky’s steam projects in Western Canada beginning in 1985 was interesting and challenging. “It is the way of the future to get heavy oil out of the ground,” he said. Christie began his last full-time job in Lashburn in 1998, supervising trucking operations for Klinger’s Oilﬁeld Services before they became Flint Energy. He retired from Flint in 2008, but his career clock continues to click. Today, Christie drives a pilot truck part-time for Bry-Tan Trucking in Lloydminster. To ﬁnd out what else Christie has accomplished and what his two grown up kids and grandkids are doing in Lloydminster, come to the banquet.

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Pilot to see if in situ combustion can Ă y under post CHOPS conditions. Nitrogen was used to establish injectivity before switching to oxygen and turning on the igniter as part of the experimental procedure. The test conditions of the experiments included wet versus dry combustion, normal air versus enriched air, a high permeability versus a no permeability zone and dead oil versus live oil. â&#x20AC;&#x153;The experiments demonstrate the high permeability channels for injectivity and a path for the combustion front to track,â&#x20AC;? said Chen. The tests also show that localized coke plugging of a channel

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Joyce Chen, a research scienĆ&#x;st from Alberta Innovates Technology Futures delivered a talk during the technical lunch of the Lloydminster SPE in January. Her topic centred on the results of lab experiments with in situ combusĆ&#x;on following CHOPS producĆ&#x;on.

prevents the combustion front from breaking through to the production well, even with a completely open wormhole channel. â&#x20AC;&#x153;Based on our lab results, itâ&#x20AC;&#x2122;s very promising, however; we can only speak for the lab results. This is a mechanistic study in the lab,â&#x20AC;? concluded Chen. â&#x20AC;&#x153;Is the combustion going to behave the same in the ďŹ eld as what we saw in the lab? We donâ&#x20AC;&#x2122;t know. We cannot answer that question in the lab. â&#x20AC;&#x153;Does the combustion front have the same behaviour along the whole length of a wormhole? The answers require pilot testing,â&#x20AC;? Chen said. Alberta Innovates in currently running numerical simulations and is looking for an industry partner to conduct ďŹ eld trials.

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to a wellbore. Cold production is characterized by reduced pressure in the reservoir, regions where gas in continuous leading to stranded oil, and the creation of wormholes that can extend up to 100 metres from a reservoir to a wellbore. Those wormholes also allow a path for the injection of oxygen for combustion and water for steam to sweep oil from the heated reservoir to the wellbore downstream of the combustion front. Alberta Innovates created a scale model of a small portion of a formation around a wormhole and conducted eight simulated experiments of a reservoir

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Lloydminster â&#x20AC;&#x201C; The next enhanced oil recovery method for heavy oil could be in situ combustion after cold heavy oil production with sand or CHOPS. Post CHOPS in situ combustion has increased oil production from 50 to 80 per

by cold production. Industry is running out of new well locations for cold production. Economic gains could result from incremental oil recovery with viable follow up processes. â&#x20AC;&#x153;The purpose of the experiments was to investigate the combustion process and how it behaves in conditions representative in a reservoir after cold production,â&#x20AC;? said Chen. The concept of in situ (steam) combustion as a follow up to CHOPS is based on the high permeability channels called wormholes, which are created during cold production to mobilize oil and sand

Hart Golbeck, producĆ&#x;on technology team leader in heavy oil and oil sands research at Alberta Innovates Technology Futures in Edmonton, introduced fellow guest speaker and research scienĆ&#x;st Joyce Chen at the Lloydminster SPE technical lunch in January.

cent in lab tests being conducted by Alberta Innovates Technology Futures in Edmonton since 2003. Joyce Chen, a research scientist at Alberta Innovates, provided an update on the promising research during the January technical lunch of the Lloydminster Society of Petroleum Engineers. The presentation titled, In Situ Combustion as a Follow Up Process to CHOPS, was prepared by Chen, Roy Coates, Kaz Oldakowski and Brian Wiwchar from Alberta Innovates. Interest in post CHOPS processes is based on the fact that only ďŹ ve to 15 per cent of heavy oil is recovered

PIPELINE NEWS March 2012

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B-SECTION March 2012

When Àshing, take a full tackle box Story and photos by Brian Zinchuk Estevan – The array of downhole tools in the warehouse is dizzying – each with its own special purpose. They vary by size, in fractions of an inch, and type. Some go over pipe, others go in. Some grind, some cut. And a few are just plain different – looking like corkscrews, or the guts of an impact chisel. A few have even been locally designed. Welcome to the tackle box of the downhole fisherman at Weatherford’s Estevan location. “Anything that goes below ground level is our job. Anything that goes through the floor, you can have problems with,” said Greg Stubel. “Anything you run in the hole can break.” Stubel and Dion Buskow are among the four fishermen based in Estevan with Weatherford, while Greg Kallis is the manager. Fishing is one of several product lines based at Weatherford’s numerous locations in Estevan. A fisherman’s job involves the retrieval of lost or broken items down hole. It can be anything from parted rods to tubing to hand tools. Buskow cited one example in which a dump truck knocked off a pail that was covering an open well, resulting in a lot of gravel being sent downhole. “I ran in with a wash shoe, a junk basket and a super sucker,” Buskow said, recalling how that was dealt with. In other instances they have seen casing collapses, rotten tubing, or instances where a drilling rig will get stuck because the formation swelled. “If you can’t retrieve it or jar it out, you’ll have to cut it out,” Stubel said. Dealing with problems is rarely cookie-cutter, however. “You’ll never do the same thing twice,” Buskow said. In another instance, an aluminum wrench, which could not be retrieved by a magnet, required a junk basket sub and a super sub. “We had one drilling rig drop a lift nubbin down the hole three times in one month,” Buskow said. Kallis noted of their fishermen, “I’ve seen them make their own tools.” One of which could be found in the warehouse – a three-pointed, barbed device meant to retrieve inflate elements, a brainchild of Stubel’s. “There’s lot of tools that aren’t on the shelf,” Kallis said. “You’ve got to be open-minded,” Buskow said. Something dropped down a well will accelerate until it either hits the bottom, as in a vertical well, or rounds the curve of the build section, often settling out at 70 or 80 degrees, provided it doesn’t get caught up somewhere along the way. A wrench once landed above the bridge plug, while a K-bar turned itself into a pretzel. ɸ Page B2

This twisted K-Bar probably hit the boƩom of the hole at 170 miles per hour, according to Greg Stubel. “It dropped down and hit the Ňuid, punched out of the tubing, hit the packer and piled up like a freight train,” he said.

PIPELINE NEWS March 2012

If nothing else works, sometimes you make your own tools ɺ Page B1 Companies in need of a ﬁsherman don’t often like to talk about it, especially to the media, because it means something went wrong. “No one likes to see us on location, because if we’re

there, they have problems,” Kallis explained. About seventy per cent of their ﬁshing work is service-rig related, with the remainder taking place on drilling rigs. That level changes year-to-year and even day-to-day.

Dion Buskow, leŌ, and Greg Stubel are two Įshermen with Weatherford’s Fishing business unit in Estevan. The freshlypainted items on the pallet in front of them is a range of grapples for just one size of overshot.

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Rod work is usually handled by the service rigs themselves, “unless it’s really bad,” Stubel said. “When you’ve got rods pounded out of the tubing, beside the casing, you call the ﬁsherman. “We ﬁsh a lot more of their frac assemblies,” he said, citing packers and frac port assemblies as examples. “They get

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stuck and can’t pull out of the hole.” In one of these cases, a ball may have been dropped to activate the disconnect sub, using pressure to sever the sheer pins. The coil tubing rig would then pull oﬀ and they would go in with pipe on a service rig. A jarring assembly, overshot and bumper sub, along with some additional weight like drill collars, can be used to get things moving again, as an example. “Some companies have fracked, got stuck, disconnected, left it in, and then got stuck with

a second one,” Buskow said, adding there could be as many as three or four sets like this left in the hole before the job is done. The ﬁshermen then have to go back and pull them out. Stubel said, “When it comes to ﬁshing, you have to be very precise.” That means relying on the consultants to have accurate measurements of what goes into the hole. A job can be short, or very long. “I’ve been on a job, in and out, in half an hour,” Buskow said. In other instances, it can take weeks, even

over a month, to complete a project. One trend of late has been the change of the makeup of new wells in southeast Saskatchewan. “Producers in the area have gone from ball drop to monobore,” explained Buskow, adding, “This gives them way more options when they produce the well.” That in turn has resulted in a need for new tools to address the changing makeup of wells and Weatherford’s innovative ﬁsherman are ready to meet these new challenges.

PIPELINE NEWS March 2012

Hotel and restaurant owners see potential in Saskatchewan “I really became interested in Saskatchewan. I learned Saskatchewan had the best economy in Canada, and arguably the best in the world. I was talking to my wife, saying ‘We’ve got to Ànd something in Saskatchewan.’” – Bryant Ko By Brian Zinchuk Estevan – As its name suggests, the Derrick Motor Hotel has long been an established player in the oilﬁeld accommodations market in Estevan, often with several frac crew units parked in its lot. Now under new ownership, it has recently seen the addition of a Smitty’s to the site, and could soon see an entirely new hotel built adjacent to it. Bryant and Lindo Ko were both born in Korea and raised in Vancouver. They’ve spent much of their career building up a specialized education consulting ﬁrm, Vancouver International Student

Bryant and Linda Ko recently opened a SmiƩy’s Restaurant on their property, which includes the Derrick Motor Hotel. The pair have big plans for the site, including another hotel.

Services Ltd. “I deal with a lot of rich families and their children’s education needs,” Bryant said. Their clients have been predominantly landed immigrants from Korea. “They all have goals – certain kids to go to Ivy League, or become somebody,” he said. At one point they had 40 tutors working with them, and were looking after over 100 students. But that business is demanding, requiring them to cater to every student’s need. Plus there has been a lot of competition entering the market since they ﬁrst

started. “I was the first person to start this education business in Canada,” Bryant said. “Now there are hundreds.” They started looking for a business that could be run in a more hands-off manner. That’s how they came to find Estevan. Bryant explained why. “I read an article three or four years ago. It said, ‘The future of Canada: Saskatchewan and Manitoba.’ It talked about why, and the writer provided a whole bunch of reasons. I was very impressed. ɸ Page B4

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Derrick hotel owners considering second hotel ɺ Page B3 “It also mentioned the clean coal project. I really became interested in Saskatchewan. I learned Saskatchewan had the best economy in Canada, and arguably the best in the world. I was talking to my wife, saying ‘We’ve got to find something in Saskatchewan.’” They had been looking at hotels in British Columbia, but in December 2010, they bought the Derrick, as well as the restaurant that had been under renovation. “We came across this opportunity here. We decided to push for it. They already had an offer. Ours was the second. The first did not go through,” he said. A third offer was also in play. “That’s how popular this place was,” Linda said. “There’s four acres of land. This was in the process of being built,” Bryant said, referring to the new Smitty’s where he was seated in the with his wife. It marks a return of Smitty’s to Estevan, whose last location on the other side of the city closed in 2008. As for the new location, Bryant said, “It used to be a Chinese/pizza restaurant. We extended another 800 square-feet and renovated the whole place.” It was here they found the realities of the shortage of building trades in the area, as well as engineering and inspection difficulties. “Originally we wanted to open January 2011. It took another year,” he said. “This town can use more trades workers. “That was one of the main problems,” Linda said. “The previous owners

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wanted to turn this into a franchise restaurant. We took over after he made his decision.” Finding labour has been a challenge. “We’ve brought in several Filipinos,” Linda said. “We need more. They’re working so hard.” Most of the front staff are local. Their intention is to eventually operate the Smitty’s from 5 a.m. to 9 p.m., but until they can find enough people, the operation has been from 7 a.m to 8 p.m. “It’s a skilled thing, the kitchen. You can’t just get someone off the street and get them to cook the Smitty’s way,” Linda said. The Derrick is a 68-room hotel, with a swimming pool and bar. But Linda noted, “It’s an older building.” The pair are excited about Saskatchewan’s potential, both in the Bakken play and due to potash development. And they still have two acres of undeveloped land in Estevan. “I was thinking of a 60 to 70 unit hotel with kitchenettes in each room, and each room being very roomy, clean, comfortable and functional,” Bryant said. He’s even considering larger washrooms, saying, “These guys are big.” “I want to create a lot of indoor activities,” he said. The existing, aging, Derrick pool area could be turned into an indoor mini-golf and golf simulator area, while the new hotel would see a pool, maybe a sauna, hot tub, and fitness centre. The Derrick’s former wedding hall could be turned into a games room. As for a timeline, Bryant said, “I want to get the ball rolling this year.”

PIPELINE NEWS March 2012

Kash Downhole diversiÀes its line

This tubing rotator, right is a new line for Kash Downhole Anchors. Below: anchors line the wall Photos by Brian Zinchuk

By Brian Zinchuk Estevan – At the end of their fourth year in business, Kash Downhole Anchors Inc. is diversifying. “We’re starting to get a lot more into the downhole equipment,” said Tracy McConnell, who owns and operates the company with his wife Kelly. Among the items they can now supply are pump seating nipples, perforate pups, pup joins, collars and bull plugs. There’s also a new addition. “We’re into tubing rotators now. It’s a flange that sits on the top of the hole. It works off the pumpjack. Every time the pumpjack goes up and down, the tubing rotates slightly.” The action is provided by a ratcheting action and a significant gear reduction. It’s similar to a beam pump. “They rotate about a turn-and-a-half a day,” he said. It’s a possible growth area for the company. The technology has been around for years, but McConnell, pointed out, “The wells are being drilled so fact, they’re not being drilled straight.” The result is a lot of tubing and rod wear, down to the anchor. Every time the tubing is pulled, the anchor is as well, often to be replaced by a refurbished unit. Kash is looking for a larger facility. “We’ve just outgrown this,” he said. Location is important, especially staying within Estevan, near pump and supply shops. McConnell said, “They can pick up the anchor here, then rods and head out of town.” As for finding people for a future expansion, McConnell, pulled out a stack of resumes three-quarters of an inch thick. “Ninety per cent are from out of town, some are from out of the country,” he said. “We e-mail back, ‘Do you have a place to live?’” That answer, typically, is “No.”

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PIPELINE NEWS March 2012

Courage OilÀeld launches new truck wash By Brian Zinchuk Oxbow – A changing business strategy has led Oxbow-based Courage Oilfield Services Ltd. to not only build a new shop, but also open its doors to the public by providing a new public truck wash that is set up to take oilfield clientele. Amanda Fitzpatrick is the office manager of Courage, while her father, Lorne Bremner, is president and operations manager. “We grew out of our old space. We were there for eight or nine years,” Fitzpatrick said. The company has continued to evolve over the years. “We had three rod rigs for the longest time. We had a fourth for awhile, and other expansions,” she said. This is their fourth winter with steamers, for instance. First they had a steamer, then added another steamer, hydrovac and vac unit, then yet one

more steamer, winch trucks and gravel trucks. However, the business has curtailed its operation of rod rigs, and is now down to just one. A single rod rig was recently sold to Mexico, while a 40ton picker truck has been added. “I want to be more diverse,” said Bremner. If you have just rod rigs, when it’s slow, it’s slow.” Fitzpatrick said, “When the oil crush was really on, a lot of oil companies were keeping their service rigs really busy. We were forced to compete with service rigs, but we’re not.” It’s important to have competent, capable staﬀ to operate these units, she explained, adding there’s an intense learning curve. And because the work is so similar to service rig work, “Service rigs love to poach them.

The new public truck wash is a major feature of Courage OilĮeld’s new shop.

majority of our equipment now holds fresh water,” she said. They were also looking to upgrade their oﬃce, so nearly a quarter section of land was purchased on Highway 18 east of Oxbow.

“It felt like I was training guys for the service rigs.” The steamer ﬂeet has been busy over the winter. “We’ve been following service rigs and frac crews,” Fitzpatrick said. “Last summer we sat our steamers. Our vac and combo-vac worked right through, doing tank cleansings and hydrovac work.” With an environmental end dump, they’ve also been able to haul solids from waste disposal sites.

space available for lease. It’s wood frame, with in-ﬂoor heat and recovery heat units as well. The centre section is wide open, drive through shop space. They can park ﬁve units wide inside. The west

Amanda Fitzpatrick shows the automated payment system for the new truck wash.

The changing ﬂeet has meant an expanded need for warm storage during the winter. “The

Some immediately expressed an interest in their old shop, but Courage is retaining it for future expansion. The new building has a total footprint of 132 by 120 feet. The east side is composed of ofﬁce area, while the west side has 680 square-feet of retail space and 1280 square-feet of oﬃce

side has a 60-foot service pit. “We have an on-site mechanic and are taking on some third party work,” Fitzpatrick said. What’s immediately noticeable, both inside and out, is the clear doors, allowing copious a mounts of sunlight to ﬂood the interior. ɸ Page B7

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Sponsorship for this year’s show includes: Gold - $1000 – 1/4 Page Ad in Program • Tradeshow Booth • Table of 8 for Dinner • Advance Advertising • Poster Advertising Silver - $500 – Business Card Ad in Program • Tradeshow Booth • 4 Tickets for Dinner • Poster Advertising Bronze - $150 – Listing in Program For more information go to www.redvers.ca and click on the link to the Redvers Oil Showcase, e-mail redversoilshow@hotmail.ca or call (306) 452-3225

PIPELINE NEWS March 2012

ɺ Page B6 Public truck wash In addition to the shop space is a 20 by 132 foot wash bay. What makes the wash bay significant is that it will be open to the public. It has two bays, which can either be used separately or together, depending on the length of a unit. It’s large enough to accommodate a service rig or B-Train semi. And if it’s simply too big for the wash, Fitzpatrick pointed out they have four steamers. “It’s something this area needs,” said Fitzpatrick, adding there are not a lot of places in town where a truck driver can pull off the road and park safely, as well as be able to wash their truck. “There aren’t big truck, oily truck washes in the area,” she said. The wash is equipped with a foam cannon. “With the retail space, we are looking to develop additional outside parking for semis. We’ve got pay-for-use showers and a truck wash. We haven’t determined how far we’re going to go with the retail yet,” Fitzpatrick said. Current plans are to have the truck wash open from 9 a.m. to 5 p.m. “Depending on demand, that could change quickly,” Bremner said. “You can run loonies, a credit card, a customer card, a code, or pay in the retail area,” Fitzpatrick said. Being out of town, and therefore without access to municipal water or sewer, they had to develop their own well. Key to the wash system is its water management system. “It’s a fully selfcontained, recycled water system,” she said. “It uses a filtration system and aeroDale Wolkowski, Courage bic digestion. It will recycle OilĮeld’s mechanic, can be all the water back to car found in the service pit, unwash usability. The digesder a truck. tion deals with the oil.” There’s a four-stage pit that’s part of the system, which also uses cyclonic separation, a bio reactor with active bacteria. While it’s a standard installation for Alberta washes, it’s not so common here, she explained. “They estimate 80 per cent retention,” Fitzpatrick said, noting the remaining 20 per cent goes to evaporation or what drips off the truck. When things were slow last summer, Courage put their employees to work on the shop. “We kept all our guys during the slow period. We’ve never let guys go for slow periods,” she said, noting that they were able to do some of the development of the new place last year when flooding ground the oilpatch in the region to a crawl. “This was a fast build. We broke ground in May, and we were in the shop in December,” she said.

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PIPELINE NEWS March 2012

Floods dried up golf revenues Jeī Mosley, leŌ, stepped down as president of the Estevan OilĮeld Technical Society. BreƩ Campbell sat beside him, acƟng as secretary for the organizaƟon’s annual general meeƟng. Photo by Brian Zinchuk

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Estevan – When the big money-maker for your organization gets flooded out, there will be an impact. Outgoing Estevan Oilfield Technical Society president Jeff Mosley joked at the organization’s annual general meeting on Jan. 25, “There was no golf tournament. For some reason, the golf course wouldn’t let us on. What could we do?” Apparently, there were not enough boats. The organization’s 52nd annual bonspiel

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is typically a break even event. This year they lost money on the golf tourney. Prizes bought before the cancellation totalled $10,000 in value. They can be used next year, but it was still an output. A fundraising supper and dance resulted in a donation of $15,000 for ﬂood relief, however. But the golf tournament had the biggest impact on revenues, with a $97,000 in incoming revenue difference compared to the year before. This also meant Estevan had to forego the extra money spent around the tournament, in hotels and restaurants, as golfers come in from all over. Despite this, the organization was able to weather the storm, so to speak. “We did have to watch,” Mosley said. It was the ﬁrst time ever the event had been missed. Questions remain for this year, as Woodlawn Golf Club will only have nine holes. They are exploring the possibility of working with another course to supplement it. “There’s

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a lot of logistical work that has to be done,” Mosley said. “We may have to completely change the format. “I think its a great social event for the oil industry. It brings a lot of people to town.” Mosley felt it should be brought forward in a manner that can include everybody. “Only accepting 100 golfers would damage the event for years.” There is an idea in the works to change the direction of the annual scholarships given out each year. There was some discussion as to whether or not the OTS should take an advocacy role in the community, taking on topics like housing or the recent issue of loading crude oil into rail cars within the city. Mosley noted there had been a formal request from the City to take a stand on the rail issue. After a brief discussion, it was clear there wasn’t a consensus of thought on the crudeby-rail issue, and so no action was taken. One member noted the organization is not a lobbyist vehicle.

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PIPELINE NEWS March 2012

Big Country’s new shop started to get walls on Jan. 24.

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Four years in, Big Country expands By Brian Zinchuk Estevan – It was in 2008 that Big Country Energy Services Limited started up operations in Estevan. Initially with 35 employees, the company has nearly quadrupled that by early 2012. Now they are in the process of building a new shop on the east side of Estevan to accommodate that growth. There would be even more employees, if division manager Mike Brasseur could ﬁnd them. “That’s the issue, trying to build [the business.] You need the clientele as well. I’ve never been one to turn down work, but it seems this year I have to.” Big Country Energy Services LP and Big Country Midstream Construction LP operate throughout Alberta

and Saskatchewan servicing a broad range of clients from six full service locations including Estevan, Swift Current, Medicine Hat, Brooks, Ponoka, Whitecourt, Fort St. John and Slave Lake. Big Country Energy Services LLC is their U.S. division which operates in North Dakota, Wyoming, Montana and Colorado. “We do general maintenance, facility work such as batteries. We pipeline in steel, ﬁbreglass, poly, Fiberspar and ﬂex pipe,” Brasseur said. They also do some skid packages. “Once we get into our new shop, I’m hoping to get more into that,” he said. “The market in skid packages is tough. There are several companies that are already set up and it’s

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New shop will expand capabilities ɺ Page B9 their lives in my hands when they came over. I felt The company is in need or more welders, it was on my shoulders to ensure success within this foremen, and indeed, all types of workers. Some division to keep the employees here.” experience would be nice, too. “It was a difficult time,” Brasseur said. “I’m getting a lot of guys coming in and saying “My customers are very faithful. It was a really they’ve done this, they’ve done that. The resumes look good, but when you get into the field, it’s a different story,” Brasseur said. “It’s hard to find qualified people that are used to doing the type of work we’re doing. My main concern is keeping the customer happy, and sometimes that can be a tough job to do.” Brasseur founded the Estevan location of Big Country. He had spent 19 years working with another oilfield maintenance outfit in town before joining the new company. Brasseur took over 30 employees with Mike Brasseur is the Estevan division him when it launched in manager for Big Country. October 2008. “2008 was a very tough year with the industry as a whole. We were good feeling to have that support. It wasn’t like we very successful off the start. When the recession hit, had to go looking for new clientele. The clientele it was like holy ... what’s going to happen?” Brasseur followed us as well. In the first month of operation, said. we invoiced just under $1 million. He said there were concerns for not only him“My people were very surprised at how quickly self, but the staff who joined him. we were bringing in that kind of revenue. I totally “I was concerned for my employees. They put thank our customers for supporting us during the

change.” While project work can be hot and cold, maintenance work is generally ongoing. “Maintenance was kind of new to Big Country. They were used to bigger projects, 50 to 150 employee projects. It was a good change for Big Country’s ways.” “We still do our treater turnarounds, tank inspections, optimizations, the things that need to happen. Maintenance is an important part of a company’s success. It keeps your employees happy and everyone busy,” Brasseur said. “It’s nice to fall back on maintenance. Maintenance is there forever. When the recession hit, we still had income and were profitable. Big Country survived 2008 as a company. A lot of companies didn’t. We had to cut back on spending, that was all there was to it.” The current location on Estevan’s Kensington Avenue is difficult to get into with trucks and trailers. Their iron generally stays in the field, working, he said. “We have 18 trackhoes working, plus graders and dozers, along with five sidebooms,” according to Brasseur. ɸ Page B11

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PIPELINE NEWS March 2012

B11

Potential CO2 work on the horizon Big Country intends on moving into its new shop by the end of April.

One potential growth area for Big Country is cashing in on the development of carbon dioxide miscible ﬂood enhanced oil recovery. SaskPower has yet to announce who will be buying the CO2 from the Boundary Dam 3 project currently under construction,

but one of the leading candidates is the Steelman field. If that should come to pass, a lot of work similar to what has been happening in the Weyburn and Midale fields would be taking place there for years to come. “We’re definitely hoping to be involved in

the CO2 play,” Brasseur said. “That’s a ton of work in old infrastructure in the Steelman ﬁeld. There is a huge market of future work in this area. Hopefully prices stay constant throughout the next several years. That will dictate our success here.”

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ɺ Page B10 “We’re hoping to be in our new shop by the end of April,” he said. “We have a very good contractor there, out of Medicine Hat.” That move coincides with spring breakup. Brasseur noted, “The way it looks right now, it’s going to be a hectic move. We’ve got projects that will take us into the middle of April. I am hoping to start moving and packing up whenever we can to try to make it a smooth transition.” The company bought ﬁve acres along the Shand Road, east of Estevan in the RM of Estevan. “We’re putting up 9,500 square-feet,” he said. There are provisions to add onto the fullysteel structure, which will be equipped with a 7.5-ton overhead crane. To go with a steel building instead of a pole building, Brasseur explained it might cost a bit more in the beginning, but it is easier to expand later. Indeed, he already wishes they had added

another 40 feet to the building. “We’ll see how things go, as far as growth,” he said. “The industry has proved to have its ups and downs. A person just never knows.” The new facility will increase Big Country’s capabilities in pipe fabrication and structural manufacturing for facilities, including pipe racks, tank structures and skids. “I can see us having our own mechanic down the road,” he said. Finding them, however, can be difficult, as heavy duty mechanics are in high demand. “If we can get some good mechanics, we’ll add to that shop instantly,” he said. One of the factors in finding people to willing to come to Estevan has been the difficulty in finding housing and the prices they have to pay. They’ve considered some form of camp, with Brasseur noting, “We’ve thrown that around. What really hurt this last year was the parks were closed.

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PIPELINE NEWS March 2012

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Poplar Creek updates activity Poplar Creek Resources Inc. has been advised by the operator that it has placed on production the previously announced quad-leg horizontal oil well on the Sparky heavy oil property in the Warspite area of Alberta. Based on the initial 30 days of production, the HZ Bellis 14-36-58-17W4 well was pumping at an average rate of 175 bbls of oil per day. This is the fourth horizontal oil well drilled on jointly held lands at Warspite. Initial production from the Sparky heavy oil property was a single leg horizontal well placed on production in December 2010. The two previously announced tri-leg horizontal wells were placed on production in August 2011. Current production from the jointly held lands is approximately 300 bbls of oil per day. Poplar has a 3.5 per cent interest in approximately 2,600 net prospective acres on the Sparky heavy oil property. As previously announced, the operator received approval from the Energy Resources Conservation Board, which amended the drilling spacing on the Sparky heavy oil property to allow for the drilling of up to eight horizontal lateral legs per pool per quarter section. In view of the results of the latest well it is the operator’s intention to further amend the drilling spacing to allow for the drilling of quad-leg horizontal oil wells on the jointly held lands within the Sparky heavy oil property. Based on the same drilling configuration as the HZ Bellis 14-36-58-17W4 well, up to an additional 38 quad-leg horizontal wells (152 laterals) have been identified on the jointly held lands. In addition, Poplar owns its share of associated production infrastructure at Warspite along with an interest in approximately 150 gross sections of land in the general Smoky Lake and Thorhild areas of Alberta. The average cost per well of drilling, completing and equipping quad-leg horizontal oil wells in a multi-well program is estimated at $1.25 million. Also, the company recently completed its previously announced 3D seismic program at Radville/Ceylon, Saskatchewan, and has earned a 15 per cent interest in 640 acres of lands. The seismic is currently being interpreted with a view to making a drilling decision by the end of the first quarter of 2012. These lands are on trend and prospective for Bakken oil production.

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Redvers Oil Showcase coming up Redvers – The fourth Redvers & District Oil Showcase is just around the corner. The event is scheduled for May 1011 and there has already been a great deal of interest with regards to registrations and sponsorship. Interior space is over 60 per cent filled and outside space is over 80 per cent filled. This year the keynote speaker at the dinner on Thursday night will be Patrick Ward, President and CEO of Painted Pony. Enbridge is also scheduled to present on Friday May 11. The previous shows were held in 2007 and 2008, followed by the first two-day event in 2010. It is held on offset years to the Weyburn Oil Show. Based on some of the feedback that was received from various exhibitors from the last show, show organizers have decided to change things up a bit again this year and host the show on Thursday and Friday rather than Friday and Saturday - as it was in 2010. The committee hopes that this will allow people working a variety of different shifts to attend. With Redvers being situated right in the middle of the Bakken play in SE Saskatchewan and SW Manitoba (as well as adjacent to the same play in North Dakota), this makes it the perfect location to showcase existing and upcoming technologies for the oilfield and related industries. The Oil Showcase will have items and exhibits of interest to everyone from company officers, engineers, consultants, drillers, landpeople and many others who work in the oil industry. The previous Oil Shows revealed Redvers as a town progressing and moving forward and organizers want to show that we are continuing that trend. With a new hotel in progress as well as an expansion planned at the campground, organizers anticipate that there will be ample space for all to stay in town at the next oil show. The 2010 oil show was considered a tremendous success with Brett Herman, CEO of former Tristar Oil & Gas Ltd being the keynote speaker to a sold out crowd at the roast beef and “pork on a spit” banquet on Friday evening. One hundred exhibitor spaces were filled both inside and outside at the Redvers arena – showcasing a number of oilfield and other industry technologies and well over 1100 people came out to check things out. At the 2010 show organizers also entered the names of all of the gold and silver sponsors to a draw for either a commercial lot in Redvers or a trip voucher and Essential Coil Tubing won the draw and selected the travel voucher.

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PIPELINE NEWS March 2012

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The Redvers Oil Showcase will feature indoor and outdoor exhibits. File photo

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Borealis Global Energy Services Inc. (Borealis Global) is marketing the sale of 16 separate parcels comprising 153 acres of land on behalf of 1174365 Alberta Ltd. Cameron Construction has done all the dirt work Highlights • 1 mile east of town limits of Estevan, Saskatchewan, for this project. on new truck by-pass route. They have purchased 10 acres of land & will be putting up • Estevan truck by-pass route approved with a shop and office in this Industrial Park. construction to start 2012. • Lots ranging from 5 to 26 acres each – easy to For all of your pipeline construction, oil lease re-configure titles if necessary. development & general contracting, • Zoned light industrial commercial. contact John Cameron at 403-630-3240 • Environmental Phase 1, Geotech, and Heritage Review all complete. www.guard-allstructures.com • New access road on property complete (just www.cameronconstruction.ca needs gravel), and drainage complete. • 6 inch high pressure water line from town, 3 phase underground power, and natural gas to each parcel (all in place). Water pressure booster to be installed on site (80 PSI). • Environmentally friendly, self contained, pressurized and expandable sewage/waste water unit on site, linked to each parcel, to be installed spring 2012. This is the only land for sale in the Estevan area 5 acres plus which provides full sewage and waste waster handling. • Dirt stripping in progress, sites ready for construction February 2012. • Fast-track permitting for buildings, shops, etc. • On high ground – did not get flooded in last springs floods in SE Saskatchewan. • Frontage road with two access points to truck bypass route. • Developer leasebacks available on land and buildings. • Executive style camp to be available in Industrial Park for work crews and tenant employees waiting for the Estevan housing market to catch up with demand. • Rail loading/un-loading facility within 3 miles. • Close to North Portal Border Crossing into North Dakota. Companies can legally work on For additional information contact: both sides of the border provided they pass through this border crossing (approved Gary Stevens: (780) 305-9255 paperwork required). Vince Kirton: (403) 836-0150 • Well positioned for the prolific Bakken oil resource Borealis GLOBAL main office: (403) 233-9240 play.

B14

PIPELINE NEWS March 2012 BeƩs Drilling Ltd. sent its second rig out to work on ValenƟne’s day. The new drilling startup built two rigs back to back, and was able to get the second rig out the door in Ɵme to take advantage of a month’s drilling before breakup. Photo by Brian Zinchuk

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A new tool coming from Quantum Calgary - Quantum Downhole Systems Inc. continues to stretch the envelope, using the FlatPak two-conduit coil tubing system for its tools. Right now it is the process of adding a new tool to the mix. Company president Steve Winkler said, “Over the past 18 months, we have been primarily working on under or sub-pressured horizontal oil wells all over Alberta and Saskatchewan. Some of the zones are various cold heavy oil production with sand (CHOPS), CSS, SAGD, Viking, Montney oil, Saw Tooth, Manville, Dina and Pekisko. Some of our upcoming work is in the Cardium, Shaunavon, Save Point and lower Amaranth with up to total depths of 3100 meters. Many of you have been asking for us to reach greater depths; we are taking this as a step by step approach. We started out with 1000 m in 2009, 2000m in 2010, and this past year 2400 m was our max depth. “The horizontal multi-stage stimulation well design is relatively new in our basin. We are now starting to see effects of a mature well. Some of these include: abnormal productivity decline, low reservoir pressure, sand, scale and wax. Because of the horizontal design and low reservoir pressure, the technology previously available to not only clean these wells out, but also production evaluate or gather data for development reasons was quite limited. The JetVak system is proven with 400 operations to date in the toughest of conditions; eg. low pressure 460Kpa res pressure and 17000cP oil. Simplifying the cleanout process somewhat, Winkler told Pipeline News, “We pump down one coil into the pump. It creates a suction. The sand and wellbore fluid are sucked into the pump and that is returned to surface via the other conduit.” Some of the flow at the bottom of the tool is used to fluff up and fluidize solids.

ɸ Page B15

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Analyzing single frac stages ɺ Page B14 Winkler said a close analogy would be a carpet steam cleaner, which sprays hot water and cleaning solution on carpet before immediately vacuuming it up. The system has the ability to map out where sand is in the well, as well as where you recover fluids, providing essentially a report card for the well. Next level As for what’s new, Winkler said, “We’re trying to push the concept to the next level. “We’re busy with cleanouts. One rig, sometimes two, are going out. It’s fully commercial now,” he said. A second unit is being added in March, to be based out of Lloydminster. “We feel the more we can find out about a well, the better they can drill and complete a well,” Winlker said. The company has a new tool in the works, something Winkler said they’ve come up with in the last three months. “It’s extremely difficult to production log a nonflowing well. It tells you what fluid is coming from where, in which mixtures.” This can be useful in horizontal multistage fracs, SAGD cleanouts, CHOPS cleanouts and conventional horizontal wells. “What’s old is new in the oilpatch. Take old and new tech by themselves – coil tubing and jet pumps have been around,” he said. Now, working with World Oil Tools, a company focusing on inflatable packers, they are taking a new approach. The assembly works like this: from the bottom, an inflate packer blocks off the well. Then a slotted pup joint is straddled across the frac port. Then there’s a second packer, and finally their jet pump. “We channel the suction of the jet pump to the packer. We’re pumping through the pump. Fluid is coming between the packers and straight into the pump,” Winkler said. “The purpose is to find what is coming from what part of the well.” He asked, “What kind of sand is being used? Is is staying in the frac?” This information can reflect on frac performance, such as gell usage and tonnage, or if the frac broke through to water.

If water is the case, that section of the well can be closed off, using perhaps a casing patch, or certain polymers, to seal it off. Similar analysis can be used for sand flow during a cleanout. “From my standpoint, we have to be Spic ’n Span. During a well cleanout, as we are coming out, we stop at each stage. We will identify if a frac is not staying in place during the cleanout. “When we do a cleanout report, we will tell you where the sand is coming from. Winkler pointed out some rules of thumb, as determined by the Alberta Research Council. The velocity to lift solids with a fluid is 30 centimetres per second in a vertical environment, and 90 centimetres per second in a horizontal. Velocity may be reasonable at the heel of a well, but at the mid-point or toe, not so much, according to Winkler. As a result, is the far end of the well really producing all that much? He said in Saskatchewan’s Viking play, wells used to be 2,200 metres long for a horizontal leg, but that has been reduced by 700 metres, and production stayed the same. “We should look as an industry and ask why,” Winkler said. In development Quantum is also working on a BS&W density

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B16

PIPELINE NEWS March 2012

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initiative to transload crude oil from tanker trucks to rail cars in its rail yard in the heart of Estevan has garnered considerable distress from civic officials in the City of Estevan. On Jan. 24, Pipeline News and the Estevan Mercury were given a tour of the facility. As a transload facility, it’s not new, in that frac sand has been coming in since 2009. It is loaded directly from rail cars onto trucks and shipped out. The operation is on the east end of the Estevan rail yard, north of Do-All Metal Fabricating and south of the Trojan residential subdivision, whose houses are a few hundred meters away. There are six tracks there, five in parallel, and one swooping out in a gentle bend. There is an elevation gradient to the tracks, with the northernmost track higher than the southern track in the group of five. It is on

that southern track where crude is loaded, with trucks operating between it and the swooping frac sand track. The result is a de facto catchment area. If there were a leak at a rail car or truck, it would be caught by the tracks to the north, or the frac sand track to the south. To get anywhere near houses, oil would have to ﬂow uphill. Trucks enter the facility from a private road running from the intersection of the tracks and Kensington Avenue. The road runs immediately adjacent to the tracks, on the south side. This is one of 35 transload facilities the company has in North America, according to Kevin Hrysak, manager of media relations and public aﬀairs for Western Canada. A new transload facility has since been announced for Lloydminster." ɸ Page B17

PIPELINE NEWS March 2012 they have four people here. They are stepping up the manpower so it's not just one person or two people doing this and somebody has a heart attack and something happens” “There is always somebody else in place as well. This is industry standard and these guys are specialists in their

Workers load a rail car from a tanker truck, using a process very familiar to any Ňuid hauler. Photo by Brian Zinchuk

ɺ Page B16 "Transloading is a very safe process,” he said. “The number one priority for us is safety and community. Safety of our employees and the surrounding public not to mention the environment. All that happens before any operations come into place.” “This is not a unit train facility,” he said, noting there is storage for 15 cars at maximum, which is also their maximum loading capacity for one day. Other than the road and the tracks, the only other noticeable item is the gantry. Pipeline News previously mistakenly referred to this as a pump. It is not. It is in fact a metering, ﬁltering and loading system. The pumping action is provided by the trucks, much like they are on any other battery unload. The truck hooks up with its own hose

to the gantry, which is equipped with a secondary containment bin under the connection. Grounding rods are spaced throughout, meant to prevent static discharges. As a car is loaded, its wheels are chocked. Each car has approximately 650 bbl. of capacity, and they are loaded to 95 per cent capacity. The cars are doublewalled with a slight V bottom, which may explain why only one leaked when 22 similar cars derailed near Oxbow on Jan. 22. The rail cars are loaded from the bottom via an API dry break ﬁtting. Gases are collected from the top in a closed loop system and sent back to the truck via a hose in what is known as a vapour recovery system. Before leaving, the truck reverses its pump to suck out the gantry. The whole process takes about half an hour.

It takes approximately three trucks per car to ﬁll them. Regarding possibility of human error, Hrysak said, “That is why

ﬁeld and meet codes and regulations in all regards.” Full inspections are done by the crew, and then CPR staﬀ do their own inspections before the cars are moved. “We’ve gone through the environmental screenings required,” he said. One of the City’s

B17

concerns has been the possibility of a fire, and the lack of access to water at the site. Hrysak noted, “We haven’t had a fire at any facility,” but added, “We well get a heater fire car with 10,000 gallons.” That will be another rail car located on an adjacent track, full of water, in case of fire.

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B18

PIPELINE NEWS March 2012

B19

Double-walled tanker cars, fully loaded with crude oil, lie on their sides, missing their undercarriages.

Rig worker takes out train carrying crude, survives By Brian Zinchuk Oxbow – A little over a day before the City of Estevan was to meet with Canadian Pacific officials regarding the City’s concerns about crude-by-rail transloading, a rig worker on his way home in his pickup took out a unit train loaded with crude oil near Oxbow. At approximately 11 p.m. on Sunday, Jan. 22, a 19 year old man from Carlyle (conflicting reports have also said Manor) had left a drilling rig one mile south of Highway 18. The rig was working approximately one

mile southwest of the two Glen Ewen gas plants. Travelling northbound on a grid road, he struck the black tanker cars roughly onequarter of the way into the train. The front end of the truck was destroyed, but everything from the ﬁrewall back escaped harm. The rail cars had yellow reﬂective tape on their sides. The crossing was marked with a yellow rail crossing sign.. Adjacent to the highway, the tracks run east and west, just south of Highway 18. The site is approximately seven km east of Oxbow.

Approximately 17 cars and two engines remained on the track from the front of the train. The next 22 cars jumped the track, with several ending up roughly perpendicular to the eastbound direction of travel. The remainder of the cars of the unit train stayed on the track. Environment Canada weather reports for that evening at Estevan showed snow through much of the evening, but it was mainly clear at 11 p.m. at Estevan. It was a moonless night, with the moon having set at 5:16 p.m.

The Oxbow Fire Department responded, along with the Oxbow ambulance. The driver of the pickup was taken to the Gallaway Health Center in Oxbow where he was kept in overnight for observation. He sustained minor non-life threatening injuries. The impact of the collision caused 22 cars containing light crude oil to derail. Approximately two-thirds of the contents of one car spilled, according to Sgt. Chris Boardman of the Carnduﬀ RCMP. The spill occurred to the south of the tracks, onto frozen ground.

A stretch of Highway 18 was shut down temporarily although none of the cars nor the oil entered the highway. Alcohol was not a factor in the collision, the RCMP stated. “It was definitely a close one, that’s for sure,” Sgt. Boardman said. As a result of an investigation by the Carnduff RCMP detachment, the 19 year old adult male was charged with driving without due care and attention and driving while suspended. The accused is scheduled to make a first

appearance on March 1, 2012 in Carnduff provincial court. The name of the accused will not be released as the offences are provincial statutes and are entirely summary conviction offences. By noon the following day, recovery operations were well underway. Four sidebooms and several excavators and dozers were in place, along with CPR staff from throughout the region. The four sidebooms would surround a fully loaded car, one at each corner. Using slings, they would then lift the car together. In some cases they were able to

put cars back on their wheels and back on the tracks. Most were moved to the side. While Pipeline News was present and observing recovery operations, no tankers were unloaded to trucks. The spill was not easily seen from the highway. Hulcher Services Canada was the contractor that responded to the spill. Their website lists train derailment cleanup as one of their specialties. When contacted, the company cited a strict no-contact with media policy company-wide and declined comment.

Cars can be seen perpendicular to the tracks.

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B20

PIPELINE NEWS March 2012

Estevan – The staﬀ at Ensign Canadian Drilling Saskatchewan reached deep into their pockets yet again over the past several months, and the result is a whopping $88,337. Ensign Canadian Drilling Saskatchewan, formerly known as Ensign Big Sky Drilling, made a donation to the United Way of Estevan on Jan. 31. Half the money was raised by the drilling company’s staﬀ, the remainder was matched by Ensign. The division of Ensign Energy Services Inc. runs 23 drilling rigs and labour contracts for two rigs. It operates out of Oxbow. Last year set the bar pretty high, when the company donated $95,763. Rick Mann, who runs the Oxbow operation, said the lower number was a result of

Ensign Canadian Drilling Saskatchewan made a presentaƟon of $88,337 to the Estevan United Way on Jan. 31. From leŌ are: Sheila Guenther, Rick Mann, drilling superintendent Brad Mayer, Chandel Equipment Rentals manager Kevin Lauritsen, Renae Fillion, drilling superintendent Derek Smith, drilling superintendent Wade Benson and Roberta DeRosier. Geunther and DeRosier represented the United Way.

Big donation from Ensign to the United Way the protracted ﬂooding last summer. “A lot of rigs never started until August,” he said. “We had one rig that did exception-

ally well. They raised $17,000,” Mann said. Fifteen rigs took part. Ensign asked some of their main suppliers

to pony up prizes for the fundraisers. The rig that raised the most saw all 22 workers get a new iPad. Two big screen TVs were also given

away, in addition to an ipad for an oﬃce staﬀ member. Chandel Equipment Rentals, a sister division, also took part,

hosting the kickoﬀ barbecue last September. Chandel has six employees, while the drilling division has approximately 500. That barbecue sold $2,000 of hamburgers in one dinner. The campaign ran until November. “It works out well for us,” Mann said of the United Way.

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Ensign Canadian Drilling Saskatchewan, formerly known as Ensign Big Sky Drilling, is going hard this winter. “It’s busy,” said Rick Mann, operations manager. “Down here, everyone’s got the same issues. Servicing, drilling, trucking, the lumber yard – no skilled people available.” “We’re having a hard time getting green roughnecks to apply. The big one is drillers, motorhands and derrickhands – the experienced people. It doesn’t matter if it’s a two-rig operation or 25. He noted that while common practice for southeast Saskatchwan-based rigs is to run three eight hour shifts, some rigs are now working 12 hour days, so they can have a day off. They’ve had to give men a few days off between holes, as opposed to using a swing crew. The company has one more rig they could deploy, if they could find the people for it.

PIPELINE NEWS March 2012

B21

Rig on a coal mine Lasso Rig 1 was drilling on a coal mine near Bienfait on Jan. 24. Photo by Brian Zinchuk &RPPHUFLDO FDELQHWV WR PDNH \RXU RI¿ FH function. 5HFHSWLRQ 'HVNV 6HUYLFH &RXQWHUV &RSLHU 5RRP 6WRUDJH /XQFK 5RRP $UHDV 9DQLWLHV Some area:

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B22

PIPELINE NEWS March 2012

SaskEnergy lowers residential rates Regina - SaskEnergy is proposing rate changes that would see residential customers save nearly $50 on their annual bill. The natural gas utility announced on Feb. 14 it has filed requests with the Saskatchewan Rate Review Panel (SRRP) to adjust its commodity and delivery service rates. SaskEnergy has applied to reduce its commodity rate from $4.55/gigajoule (GJ) to $3.82/GJ, a decrease of 16 per cent. If approved, the proposed commodity rate – SaskEnergy’s lowest since 2000 – would be implemented on April 1, 2012. While it may be good news for homeowners, the rate reduction reflects the dismal state of gas drilling in Saskatchewan, which has plummeted in recent years due to low gas prices. On Feb. 9, the spot natural gas price at Monchy, Saskatchewan’s pipeline border crossing with the United States, was US$2.20 per mmbtu. It has fallen continuously, with Jan.12 reporing US$2.42, Dec. 8 at $3.15, and the first quarter 2011 short term price at $3.80. This proposed commodity rate reduction will offset SaskEnergy’s application for a delivery service rate increase – its first delivery service application since 2009. The rate increase is needed to address additional cost pressures related to enhanced safety and integrity programs and economic growth. The delivery service rate recommendation is for an increase of 6.7 per cent, which will mean a $2.25 per month increase to the basic monthly charge for residential customers. The new rate, to be implemented after July 1, 2012, would still result in SaskEnergy’s residential customers paying the lowest delivery costs in Canada. “After relatively stable natural gas prices through 2011, prices on the forward markets where we purchase the majority of our customers’ gas have moved lower, allowing us to decrease commodity rates for the fourth time in a row,” said Doug Kelln, president and chief executive officer, SaskEnergy. “SaskEnergy continues to use a price management strategy, allowing us to offer customers stable rates, while ensuring price protection remains in place against volatile upward swings in commodity markets.” SaskEnergy purchases its customers’ natural gas on the open market, with no mark-up or profit factored into commodity rates. The gas cost variance account (GCVA) tracks any differences between SaskEnergy’s rate and its actual costs of buying gas, so the difference can be factored into the next rate change. Kelln said maintaining a safe distribution system and meeting growing customer demands has put pressure on SaskEnergy’s operating costs, which is a key factor in the application for a delivery service rate increase. “This year’s capital investment in the safety and integrity of our pipeline system has been enhanced, as focus regarding customer safety has increased in the face of aging infrastructure and geotechnical challenges with soil conditions. In addition, capital investment in new infrastructure is now 60 per cent above the 10-year average as we’ve added more than 15,000 new customers to our system in the past three years,” Kelln said. SaskEnergy will continue to look for efficiencies to offset cost pressures in order to ensure delivery charges remain competitive. Corporately, from 2009 to 2011, SaskEnergy achieved $16.5 million in savings due to productivity and efficiency efforts, and is targeting a further $6.2 million in annual savings for 2012.

B23

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B24

PIPELINE NEWS March 2012

Having wrapped up one facility, now working on the next

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Neptune, Sask. – In the rolling hills that line the U.S. border in the Neptune area, a pipeline crew could be found plugging away on a snowfree yet frozen right-of-way. In both the Neptune and Hoffer areas, it has been pretty common of late to see Big Country Energy Services Ltd. trucks and iron. They’re putting the finishing touches on one gathering system for NAL, and are now working on the second. Each comes with its own battery. The complete battery is a 4-5-2-15-W2. It’s a facility with six 1,500-bbl. tanks, but it was built in such a way that four more tanks can be added between them without having to change any of the secondary containment. It’s an area that’s seen a lot of activity lately, with RigLocator.ca records showing five drilling rigs active, two of which were listed for NAL. Big Country has been coming behind that drilling, tying in numerous wells. “We did all the pipelining” said Mike Brasseur, Big Country’s division manager for Estevan, while taking Pipeline News on a tour of their projects. He noted over 30 wells went into the first battery. They also handled injection lines. ɸ Page B25

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PIPELINE NEWS March 2012

B25

This is a look down the centre of a baƩery built by Big Country.

ɺ Page B24 “We set up all the satellites, too,” Brasseur added. “It took about three months, with all the pipeline and facility work, from planning stages to completion,” he said. That work wrapped up at the end of January. They had about 35 people working on the project, peaking on occasion at 45. The pipeline work was a combination of ﬂex pipe and 6-inch steel group lines. As wells were completed, they were set up with tanks as a single well battery until the ﬂowlines could be put in. “A lot of these were test-tanked

last winter. It’s got to prove itself,” Brasseur said. Apparently it has, as evidenced by the follow on battery construction and continued drilling. Having the capability of not only building the facility but also doing the gathering system allows Big Country to be something of a onestop shop for the producer. “We can set the jack. We set up all these single well batteries, about 95 per cent of them,” he noted. The second battery in the works is of similar scale, with 13 kilometres of group line, 26 kilometres of gathering system, and approximately 25 wells.

There hasn’t been a lot of snow this year for Big Country pipeline crews to contend with.

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B26

PIPELINE NEWS March 2012

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PIPELINE NEWS March 2012

B27

Multi-generational machine shop endures: Mayerâ&#x20AC;&#x2122;s Machine & Welding Frobisher on the highway. It was built in 1958 as a service station and repair shop,â&#x20AC;? Darwin said. â&#x20AC;&#x153;We farmed three-and-a-half miles east. â&#x20AC;&#x153;Rudy was known for his mechanics, and he could weld, too. After a few years, we gave up on the service station and went into oilďŹ eld service work. I ended up in a portable portable welding equipment myself. â&#x20AC;&#x153;The ďŹ rst well was ďŹ ve or six miles north of Frobisher. (Drilling) then moved towards Steelman. I was 14 years old. Darwin started going to school for welding, and eventually got his journeyman certiďŹ cation in electric and gas welding, as well has his pressure ticket.

â&#x20AC;&#x153;My dad sold the farm in â&#x20AC;&#x2122;62. Dad had a ďŹ eld service truck doing mechanic work. He passed away in â&#x20AC;&#x2122;68. Mother had the business. With the bad economic times, we moved this building to Estevan, to get into a bigger centre, in the fall of â&#x20AC;&#x2122;72,â&#x20AC;? Darwin said. That period is one long-remembered by those who tried to eke a living in the oilďŹ eld, in particular due to a bill enacted by the recently elected Allan Blakeney NDP government. It was known as Bill 42, and at a time when the world was in a crisis for oil, the Saskatchewan government moved to tax it as much as possible, severely hampering the Saskatchewan oilpatch. É¸ Page B28

,_WHUKLK UL^ ZOVW H[

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Darwin Mayer can sĆ&#x;ll be found with a welder in hand.

Estevan - In times where oil is going for $100 a barrel, and thereâ&#x20AC;&#x2122;s more work than there are people, itâ&#x20AC;&#x2122;s may be hard to believe that not that long ago, Saskatchewanâ&#x20AC;&#x2122;s oilpatch sat out heady prices due to a socialist government. But those memories are very clear in the mind of Darwin Mayer, former owner of the multi-generational Mayerâ&#x20AC;&#x2122;s Machine & Welding. These days Mayerâ&#x20AC;&#x2122;s Machine and Welding is owned by Sheldon Mayer, his son. Darwin was the previous owner, and Darwinâ&#x20AC;&#x2122;s mother, Elfreda, before that. Rudolf Mayer, Darwinâ&#x20AC;&#x2122;s father, founded the business. The long-time machine shopâ&#x20AC;&#x2122;s operations are in a building that resides on Estevanâ&#x20AC;&#x2122;s Missisippian Drive, but was moved there from Frobisher in the â&#x20AC;&#x2122;70s. Sheldon took over four years ago. â&#x20AC;&#x153;Iâ&#x20AC;&#x2122;ve worked here since I was out of high school. Itâ&#x20AC;&#x2122;s pretty hard to get him to retire, though,â&#x20AC;? he said, referring to his father sitting across from him in the oďŹ&#x192;ce. â&#x20AC;&#x153;This building and business was located in

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B28

PIPELINE NEWS March 2012

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ɺ Page B27 “I remember that very well,” Darwin said. They had a grand opening in January 1973. And then the provincial government brought in Bill 42. “You would get these government people – Kim Thorson, minister of mineral resources. He’d come to meetings after the shutdown. Invariably, when the meeting was going bad for the politicians, they would say, ‘You voted for us.’ “One character would stand up and say, ‘I did not!’ and that was the end of the meeting. “Three of us, we had a meeting with Kim Thorsen and his henchmen. Trying to get something through their heads to back off. Eventually we did succeed. Months later the oilfield got going again. The government then showed some concern about the service industry, he said. There was a tax deal made, but they had to pay the government back. Darwin said, “That was a social NDP ____ for control. During the energy crisis, we’re all sitting. It was one of the worst times in my lifetime. Every morning you got up, the government was on your mind. You never knew what would happen next. “If you didn’t produce it, they could confiscate it. We were a machine shop, and there was no work. What work was done, they (the oil companies) wouldn’t let go back out, so the wells would stay down. “All your national banks didn’t want to give loans to anyone in the oil industry. Through that time, my mother owned it, but the Estevan Credit Union bailed out this business. I praise them for it,” Darwin said. He took over operation of the company in 1974, and had two partners for 14 years before buying them out in the late 1980s. Some of Darwin’s work included working on steam boilers on drilling rigs without the supervision of the Saskatchewan Boiler Branch. Back in those days, boilers burned coal. They have since been converted to diesel. Sheldon started on with the family business part-time in Grade 11, after a six-month stint with Bert Baxter Transport as a swamper. “I didn’t like that at all,” Sheldon said. So instead, he was off to school. “I did all my training at Kelsey in

Saskatoon.” That training was as a machinist. He started with welding and mechanics. He had been lined up to take mechanical engineering at the University of Saskatchewan, but a machinist left the family business, and during the same week, a recruiter came around, signing up apprentices. “Sign me up,” Sheldon said. “I went with my gut instinct. We do a lot of engineering ourselves.” “I’d worked here four years before I went to school.” In more recent years, he said they have gotten busier and busier. “We didn’t feel the recession around here.” In a long established location, he noted they have very low overhead. “The business does very well with what we have. It’s better to spend money on your employees and equipment.” Darwin piped up, “Every month you pay your bills. What you have left is your own.” He added they can get better prices from steel companies when those companies know the bill will be paid in full. “We have an overabundance of work,” Sheldon said. There are three machinists in the shop besides Sheldon. Darwin fills in, and there’s a part-time secretary. As for their specialties, Sheldon said, “We do a lot of API threading of all sorts.” There’s pumpjack maintenance, like wrist pins, tail housings and saddles. Trucking brings in a lot of business, and they fix farm equipment as well. “People forget what grease is, which is good for us,” Sheldon said with a smile. “The majority of our work is oneoff.” Reflecting on his father’s experience, as well as the direction the province is now going with a secondterm Saskatchewan Party government, Sheldon said, “I’m pretty happy with the direction our province is going. It gives you confidence our government is planning for the future. “I went to school of Darwin. He taught me very well. I more or less adopted his policies. The trick to a machine shop is reputation. You’ve got to produce good work. “He’s taught me very well about business.”

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B29

Modular housing developer takes hard look at Estevan Estevan â&#x20AC;&#x201C; Last fall, two representatives of a Kamloops ďŹ rm spent a few days in Estevan scoping out the potential for housing development. Now Horizon One Development Inc. is willing to elaborate about its plans. Martin Simmons is the president and managing director of Horizon One Development Inc. He was one of the scouts last fall, checking out the area and its development potential, particularly with regard to the growth of the energy sector and SaskPowerâ&#x20AC;&#x2122;s clean coal initiative. The lack of available housing has been a limiting factor in the southeast Saskatchewan oilpatch for several years now. â&#x20AC;&#x153;Our goal is to sell lightweight steel modular buildings to people all over the world,â&#x20AC;? Simmons said via phone from Kamloops. â&#x20AC;&#x153;Horizon has architecturally designed and engaged a revolutionary way of using lightweight structural steel to build any type of housing, anywhere in the world, using modular methods.â&#x20AC;? Those modules can be up to 480 square-feet in size. The maximum dimensions are 12 feet wide, 40 feet long and 9.5 feet tall. â&#x20AC;&#x153;Theyâ&#x20AC;&#x2122;re not containers,â&#x20AC;? Simmons pointed out. â&#x20AC;&#x153;The technology is very diďŹ&#x20AC;erent from containers.â&#x20AC;? Modular construction has been gaining interest in southeast Saskatchewan due to the acute shortage of local building trades people available to construct new projects. Last fall Pipeline News reported on an apartment complex in the northwest corner of Weyburn using modular methods for this very reason. Simmons said their engineering work has found ways to deal with potential moisture, rust and electrolysis issues. Heat and cold transfer is dealt with via spray foam insulation. â&#x20AC;&#x153;The walls are R30, the ceiling is R40, and the ďŹ&#x201A;oor is R28,â&#x20AC;? Simmons said. â&#x20AC;&#x153;Theyâ&#x20AC;&#x2122;re good to -40 C or more. â&#x20AC;&#x153;It can be built on piles for less-than-solid ground, or it can be built on a concrete slab. It can be suspended as well,â&#x20AC;? he said. BeneďŹ ts include longevity, lower maintenance, and ďŹ&#x201A;exibility. â&#x20AC;&#x153;We can take these apart and ship them some place else. In the case of Estevan, we are looking at

semi-permanent,â&#x20AC;? Simmons said. Some designs they have ďŹ&#x201A;oated include ground-level parking areas under units that are mounted on a steel frame overhead. For the Saskatchewan market, they are looking at something similar to an extended stay hotel. â&#x20AC;&#x153;It would be multipurpose,â&#x20AC;? Simmons said, noting that could include weekly, monthly and long term stays. It would have all the amenities of a hotel, including a games room and meeting rooms, but would not include a swimming pool. As for land, he said â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re dealing with two diďŹ&#x20AC;erent individuals, and potentially the City of Estevan.â&#x20AC;? They also have irons in the ďŹ re for southwest Manitoba and an area between Edmonton and Fort McMurray. â&#x20AC;&#x153;Our focus is that whole area between Estevan, Weyburn and east to Carlyle,â&#x20AC;? Simmons said. â&#x20AC;&#x153;The cost of the land is signiďŹ cantly less than other parts of Saskatchewan and Alberta,â&#x20AC;? he said,

adding, â&#x20AC;&#x153;The cost of land in Fort McMurray is unbelievable.â&#x20AC;? If they go ahead with the project, the idea is for a phased approach. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re talking about 120 units for the ďŹ rst phase,â&#x20AC;? Simmons said. The second phase would come in at 130 units, and the third would be 150, bringing the total to 400 units. The whole complex would require ďŹ ve acres and would be six storeys tall. â&#x20AC;&#x153;The design we have is for an inverted triangle shape with a courtyard in the middle,â&#x20AC;? Simmons said. He anticipated the initial cost would be in the $14-$15 million range for the ďŹ rst phase. The timelines are dependent on sales, he said. â&#x20AC;&#x153;We would like something to happen in the next six months. We could probably put up this 120 unit building in less than a year, from breaking ground to moving in.â&#x20AC;? The shells of the modules would be imported from overseas, then completed in Canada. The shell is only eight per cent of the total value.

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B30

PIPELINE NEWS March 2012

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PIPELINE NEWS March 2012

B31

Legacy budgets $305 million for capital projects (Nickleâ&#x20AC;&#x2122;s Daily Oil Bulletin) - Legacy Oil + Gas Inc. will spend $305 million this year, $254 million of which will be directed toward drilling, tie-ins and completions as the company plans to punch 123 (96 net) wells in 2012. â&#x20AC;&#x153;Continued success in the companyâ&#x20AC;&#x2122;s dominant position in the SpearďŹ sh in southern Manitoba and North Dakota and the Rundle at Turner Valley has added signiďŹ cantly to its drilling inventory and these areas will play a key role in 2012 organic activity and growth,â&#x20AC;? Legacy said in a Jan. 26 press release. With an emphasis on targeting light oil, â&#x20AC;&#x201C; Legacy said the majority of capital spending will be allocated to the companyâ&#x20AC;&#x2122;s major plays: Turner Valley â&#x20AC;&#x201C; $98 million (32 per cent); SpearďŹ sh (Manitoba and North Dakota) â&#x20AC;&#x201C; $75 million (25 per cent); conventional Mississippian â&#x20AC;&#x201C; $47 million (15 per cent); Frys/Antler - $27 million (nine per cent); and Taylorton â&#x20AC;&#x201C; $19 million (six per cent). In addition to drilling, Legacy is planning capital expenditures on a pilot waterďŹ&#x201A;ood at Frys/Antler and Taylorton. No capital has been budgeted for acquisitions, although the company continues to evaluate new opportunities, both within and beyond its core areas. The company also intends to spend $28 million on facilities and $18 million on land and seismic, while $5 million has been designated for â&#x20AC;&#x153;otherâ&#x20AC;? activities. Given its planned capital program, Legacy anticipates 2012 production to average 16,300 bbl. of oil equivalent per day (85 per cent weighted to light oil and natural gas liquids), representing growth of 29 per cent over 2011 expected average production and 26 per cent on a per share basis. The company noted that it has incorporated a â&#x20AC;&#x153;signiďŹ cant reductionâ&#x20AC;? in second quarter volumes to account for the possibility of an extended spring breakup in its Williston Basin core area. Legacy expects to exit 2012 at approximately 17,900 boepd, representing 10 per cent growth from 2011 exit rate guidance. At recent strip pricing, Legacy said its 2012 budget is expected to deliver cash ďŹ&#x201A;ow in excess of $295 million, or $2.05 per basic common share, an increase of over 50 per cent year-over-year. This cash ďŹ&#x201A;ow generation results in a debt to cash ďŹ&#x201A;ow ratio of approximately 1.3 times. Projected 2012 year-end net debt at recent strip pricing is expected to be $397 million. Cash ďŹ&#x201A;ow sensitivity to changes in oil price is 1.8 per cent per US$1 per barrel change in the West Texas Intermediate oil price. Legacy begins 2012 with an extensive light oil development drilling inventory of more than 1,200 net locations, which represents over 12 years of development potential, based on expected 2012 activity levels. â&#x20AC;&#x153;This signiďŹ cant opportunity set does not reďŹ&#x201A;ect the potential upside from

downspacing Bakken light oil resource play lands from four to eight wells per section or the waterďŹ&#x201A;ood potential at Frys/Antler, Taylorton, Heward/Stoughton and SpearďŹ sh and recognizes only a portion of the Bottineau County, North Dakota, SpearďŹ sh drilling potential,â&#x20AC;? the release said. The company added that it has material exposure to emerging light oil resource plays in southern Alberta for Alberta Bakken and Maxhamish in northeast British Columbia for Chinkeh, â&#x20AC;&#x153;that could add signiďŹ cantly to the development drilling inventory and growth potentialâ&#x20AC;? of the company.

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ment with Alberta Star Development Corp. and under the terms of the agreement, Arctic Hunter agreed to participate with Alberta Star in the drilling of this test well. Alberta Star holds a 50 per cent working interest in the new well. Under the terms of the sub-participation agreement, Arctic Hunter must pay 50 per cent of Alberta Starâ&#x20AC;&#x2122;s share of the costs, to drill, complete and equip the test well

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B32

PIPELINE NEWS March 2012

Mark Stockham, leŌ, and Darren Larson are partners in the new Sparkle Super Wash in Weyburn.

INTRODUCING BORDERLINE FENCING SERVICES (Formerly D & C Wanner Fencing) D & C Wanner Fencing would like to thank all their loyal customers for their patronage over the years. • new installation of chain link and barbwire fencing • repairs • fast and friendly service • safety tickets • free estimates • ground disturbance, Levels 1, 2 and global certified • rental of temporary construction panels Book early for Spring and Summer 2012 installation.

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New Weyburn truck wash open 24/7 Weyburn – With spring breakup right around the corner, there are four new, large lanes able to clean even the largest of rolling oilfield equipment now available in Weyburn. Sparkle Super Wash opened the first week of January. The new venture is the product of Darren Larson and Mark Stockham. Both were born and raised in the area, with Larson originally from Tribune, and Stockham from Weyburn. Before building the truck wash, they got their feet wet, so to speak, with a car wash. “We have Sparkle Car Wash,” Larson said. “We had a small car wash downtown and bought Sparkle last June. We started planning this in February and March 2011. We started moving dirt in the spring. It took most of a year.” The building was one of the first to go up in Weyburn’s new industrial subdivision on Ebel Road, on the southeast corner of the city. With Ebel Road paved, as well as the truck wash’s lot, clean trucks won’t get dirty on the way out. “If you’ve got a truck wash, you have to have it big enough to get in and out,” Larson said. “This [lot] was our first pick. You can see it off the road. It’s on the main drag.” Stockham said, “There are four lanes here, eight bays. Each lane is 120 feet long. We’re washing combines, sprayers. We wanted to make sure it was big enough to wash anything out there.” Indeed, the tall, wide lanes are equipped with catwalks on each side, and can take units as big as a B-train or a service rig. Stockham noted they can wash anything oilfield related. “We measured some of the equipment,” Larson said, noting some service rigs are nine feet wide and 14.5 feet high. All four lanes are equal in size. ɸ Page B33

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Gardner Denver FXO 7 1/4 In. x 12 In. Mud Pump • Failing CF 1500 Water Well Drill Rig • Kubota M4700 MFWD • John Deere 3130 2WD • Fordson 8N • John Deere 9600 • Macdon 960 36 Ft Draper • Custombuilt Shale Shaker • Ford 4x4 Service Truck • Ford 9000 LN T/A Grain Truck, Freightliner FLD12064ST T/A Sleeper Grain Truck • Chevrolet Silverado Ext Cab 4x4, GMC 2500 Ext Cab • Ford Niagra 4 Door Car • Trailech 20 Ft T/A • Shaunavon Industries 8 Ft Land Leveler • Westeel 4500 ± Bushel 19 Ft X 6 Ring Hopper Bin • Wheatland 50 ± Tonne Epoxy Lined Hopper Bin • Grain Belt Boss 1550 5 Hp Aeration Fan • 2- Keho 5 Hp Aeration Fan • Keho 3 Hp Aeration Fan • Maschio 63 In. 3 Pt Hitch Rototiller • New Holland 84 In. 3 Pt Hitch Finishing Mower • Buhler/ Allied 8520 85 In. 3 Pt Hitch • Yamaha Kodiak 4x4 Quad • Custombuilt 78 In. Q/A Loader Bucket • Custombuilt 72 In. Q/A Dozer Blade • Custombuilt 70 In. Q/A Manure Bucket • Custombuilt 64 In. Q/A Manure Bucket • Custombuilt 60 In. Q/A Loader Bucket • Custombuilt 60 In. Q/A Dozer Blade • 2- Custombuilt 39 In. Q/A Loader Bucket • Lindenberg Q/A Front End Loader • 800 Ft 3 1/2 In. External Flush Drill Pipe • Custombuilt Metal Sheer • E-log Wireline Tool • Enterprise E1550 6 Ft Metal Lathe • 175 Pieces Of Galvanized Steel • Easy Kleen Pressure Washer • Hotsy Pressure Washer • Nider 2800 Drill Press...AND MUCH MORE!

For up-to-date equipment listings, please check our website: Barry Brown: 306.293.2812 (h), FOR MORE INFORMATION: 306.297.7021 (c), BJ.Brown@sasktel.net Ritchie Bros. Territory Manager – Darren Clarke: 306.529.5399 Toll Free: 1.800.491.4494

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PIPELINE NEWS March 2012

B33

Sparkle Super Wash is now up and running.

These wash bays are about as big as you’re likely going to need, with full length catwalks to boot.

ɺ Page B32 “We have a chemical company we work with. They’re staying on top of the oil industry to keep our soap levels at optimum cleaning,” Stockham said. “We run about 1,800 to 2,000 PSI for the oily, dirty stuff. It takes it right off,” Larson added. They already have a product called Maxsol used for oilfield cleaning, and are taking suggestions from clients. Truck washes can be foggy places, but the building is designed with air exchangers to keep the humidity manageable. January and February have seen plenty of plus-temperature days, resulting in a lot of dirty trucks out there. “It has been good for January and February,” Larson said. “The warmer weather gave us a chance to get ready for this summer,” Stockham added. The operation is 24/7, with front store hours of 8 a.m. to 9 p.m. “We can use MasterCard, Visa, debit, or swipe cards in the bay. They can buy a wash card, load it up, and use that card 24/7,” Stockham said. Larson explained that allows business to monitor how much their service is being used. Parameters can be set up by the client. Receipts can be obtained online through the wash’s website, or printed when the front store is open. Stockham said, “You just enter the last four digits of your MasterCard or Visa and the day of the wash, and you can print out your receipt at home.” One thing they noted was that receipts in the wash bays aren’t a good idea. Water and paper don’t mix. The pair have known each other since their bantam hockey days. They roomed together in university. Both of the partners are teachers. They also own a promotional store in Weyburn, called Wolfe Promos. “I was a principal. I haven’t taught for three years,” Larson said. “I enjoyed teaching, but there are different opportunities to get into. I’m glad I did.” Larson also farms. “I took a leave of absence from teaching to help run the business,” Stockham said. “My wife owns the Health Centre Pharmacy located in the Medical Building.”

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PIPELINE NEWS March 2012

No excitment for February land sale Regina – There were no bells or whistles to ring in the February sale of Crown petroleum and natural gas rights that generated $28.7 million in revenue for the province. The ﬁrst sale of 2012 falls short of the $43.8 million generated last February – the second highest total for the ﬁrst sale of the year. Energy and Resources Minister Bill Boyd, however; said the sales total “is a good start to the year” with more blue sky days ahead for the oil and gas industry.

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“What we saw in this sale was ﬁerce competition among junior companies for dispositions, and strong interest in geological plays across the province beyond the Bakken and Lower Shaunavon,” said Boyd. “Major companies are busy working their existing inventories, and Saskatchewan is coming oﬀ its second-best year for oil well drilling. The signs are pointing to a great year ahead for our industry.” February's sale included 182 lease parcels that

Phone: (306) 739-2888 Cell: (306) 577-7460 Fax: (306) 739-2570 wggconstruction@sasktel.net

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attracted $26.4 million in bonus bids and six petroleum and natural gas exploration licences that sold for $2.3 million. The Weyburn-Estevan area received the most bids with sales of $13.4 million. The Kindersley-Kerrobert area was next at $7.4 million, followed by the Lloydminster area at $6.1 million and the Swift Current area at $1.8 million. The highest price for a single parcel was $1.8 million. Westfire Energy Ltd. acquired this 259-hectare lease parcel northeast of Eston. The highest price on a per-hectare basis was $10,405. Scott Land & Lease Ltd. bid $168,462 for a 16-hectare lease parcel south of Lashburn. The next sale of Crown petroleum and natural gas dispositions will be held on April 9. Weyburn-Estevan area (numbers rounded off) The top purchaser of acreage in this area was Ranger Land Services Ltd. that spent $2.6 million to acquire seven lease parcels. The highest price paid for a single lease in this area was $1.3 million, paid by Ranger Land Services Ltd. for a 258 hectare parcel situated four kilometres northeast of the Service Tilston Beds Pool, 10-km east of Carlyle. The top price paid for a single licence in this area was $1.3 million by Wood River Resources Ltd. for a 4,209 hectare block adjacent to the Amulet Ratcliffe Beds Pool, three kilometres south of Pangman. The highest dollar per hectare in this area was received from Midale Petroleums Ltd. that paid $6,232/hectare for a 64.75 hectare parcel adjacent to the Nottingham North Tilston Beds Pool, six kilometres southeast of Redvers. Kindersley-Kerrobert area The top purchaser of acreage in this area was Westfire Energy Ltd. that spent $4.9 million to acquire seven lease parcels. The top price paid for a single lease in this area was $1.8 million by Westfire Energy Ltd. for a 259 hectare parcel adjacent to the Plato North Viking Oil Pool, 12 kilometres northeast of Eston. This is the highest dollar per hectare in this area at $6,782/hectare. The highest price paid for a single licence in this area was $63,248, paid by O & G Resource Group Ltd. for a 1,554 hectare block situated three kilometres north of the Bayhurst Viking Sand Gas Pool, 5 km south of Eatonia. Lloydminster area The top purchaser of acreage in this area was Plunkett Resources Ltd. that spent $1.7 million to acquire 13 lease parcels. The top price paid for a single lease in this area was $777,484 by Plunkett Resources Ltd. for a 259 hectare parcel situated five kilometres northwest of the Tangleflags North Mannville Sands Oil Pool, 30-km northeast of Lloydminster. The highest dollar per hectare in this area was received from Scott Land & Lease Ltd. that paid $10,405/hectare for a 16.19 hectare parcel adjacent to the Lashburn West Sparky Sand Oil Pool, eight kilometres south of the town of Lashburn. Swift Current area The top purchaser of acreage in this area was Standard Land Company Inc. that spent $487,476 to acquire five lease parcels. The highest price paid for a single lease in this area was $319,298 paid by Stomp Energy Ltd. for a 631 hectare parcel situated within the Covington Upper Shaunavon Oil Pool, 10 kilometres southeast of the Town of Gull Lake. The highest dollar per hectare in this area was received from Standard Land Company Inc. that paid $912/hectare for a 249 hectare parcel adjacent to the Swift Current Basal Mannville Sand Oil Pool, six kilometres west of Swift Current.

PIPELINE NEWS March 2012

All Aspects of Electrical Construction • Oilfield, Industrial, Commercial, Residential, Agricultural • Fully Equipped Field Units • GPS Equipped for Faster Response Time • Knucklepickers • Excavation Equipment • Generators – 50-200 KW • Directional Boring • Trenchers, Skidsteers, Mini Hoes

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PIPELINE NEWS March 2012

Pleased to announce a new product release! BARTON GLA SERIES MAGNETIC DRIVE SAMPLER Offering the following key benefits: • Magnetically driven seal assembly • Improved shutoff assembly • Removable under line pressure • Reduced maintenance • Reduced leakage • Accurate sampling • Proportional to flow samples taken throughout the entire level control valve dump cycle • Competitively priced • Locally field tested and evaluated Call us today if you would like more information regarding this long awaited improvement for oil/water cut sampling and measurement.

There is no more need to “doghouse the books” as this device is the only competitive priced sampler on the market that provides reduced maintenance costs and accurate sampling because of the proportional to flow sample gathering method.

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PIPELINE NEWS

C-SECTION March 2012

24 rinks compete in Weyburn Oilmen’s

By Brian Zinchuk Weyburn – The Weyburn Oilmen’s Bonspiel attracted 24 rinks on Jan. 27 and 28. “That’s our max. Our format doesn’t allow for any more,” said Michael Mainil, one of the organizers. He was also fortunate enough to be the winning skip of the A event. Six sheets were active, and each rink was guaranteed three games. ɸ Page C2

Below: The winners of the 2012 Weyburn Oilmen’s Bonspiel B event, Sponsored by Brady OilĮeld Trucking, were Baker Hughes (LeŌ to right) coach Rob Somerville, third JJosh Hlavka, second Lanny McDonald, skip Aaron Mack and lead Greg Fisher. Photo submiƩed

Above: The winners of the 2012 Weyburn Oilmen’s Bonspiel A event, spon-sored by Jerry Mainil Ltd., were Caprice Resources (LeŌ to right) skip Michael Mainil, third Tyler Radcliīe, second Wayne Kerr and lead: Trevor Pandachuk. Photo submiƩed d

Below: The winners of the 2012 Weyburn Oilmen’s Bonspiel C event, spon-sored by Kmita Well Services, were Mryglod Steel (LeŌ to right) second Traviss Mryglod, lead Cody McKenzie, third Jared Nimegeers and skip Kory McGuire. Photo submiƩed

Above: The Weyburn Oilmen’s donated $2,100.00 dollars to help with the cost of the High School Curling program. From leŌ to right are president of the curling club Harry Plemel, rink manager Glen Tollefson and oilmen’s director Michael Mainil. Photo submiƩed

PIPELINE NEWS March 2012

Oilmen support youth curling ɺ Page C1 Funds raised from the event are used to support youth curling in Weyburn at the Weyburn Comprehensive School. This year a check of $2,200 was presented. “It’s a get-together. We support other sports too, minor hockey, baseball and minor football,” Mainil said. Hockey great Lanny McDonald, a goodwill ambassador for Baker Hughes, played second on their team, which also came in tops in the B event. Mryglod Steel was winner of the C event. Tyler Radcliffe, who works with Trafigura in Calgary, said, “We deal with a lot of local producers down here. Having a presence makes a difference.” Supper took place on the Friday, and was held at the rink. “We have curlers and non-curlers out there,” Mainil said. “With skins, every end is a new game.”

Ryan Driedger, of Ryder Well Servicing, centre, watches his rock go down the ice.

Rae Lynn Spencer, who works with Cenovus, glides down the ice.

WEYBURN, SK 306-842-8901 ESTEVAN, SK 306-634-8912

Safety co-ordinator Abby Kradovill sends her rock down the ice.

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PIPELINE NEWS March 2012

Three factors lower PSAC drill forecast Calgary – A triple whammy of labour shortages, warm weather and low natural gas prices has prompted the Petroleum Services Association to lower its forecasted number of wells drilled across Canada in 2012 to 13,350 wells. The new target is a decrease of 1,700 wells or 11 per cent from PSAC’s original 2012 Canadian Drilling Activity Forecast released in November 2011. “Due to skilled labour shortages, warm weather hampering the use of heavy equipment, weak gas prices related to oversupply and the ongoing uncertainty created by the European economic debt crisis, we are seeing restricted capacity across the board,” said Mark Salkeld, president and CEO of PSAC based in Calgary. “While PSAC’s current forecast may be well short of the 20,000 plus well counts we were forecasting only a few years ago, the complexity and depth of current wells will keep our industry well ahead of meeting the increasing demand for oil.” The new lower forecast still represents an increase of four per cent over the ﬁnal 2011 drilling total of 12,917 wells drilled across Canada. PSAC is basing its updated 2012 forecast on average natural gas prices of $3.25/mcf (AECO) and crude oil prices of US$90/barrel (WTI) and the Canadian dollar averaging $0.97. On a provincial basis for 2012, PSAC now estimates 8,267 wells to be drilled in Alberta, a growth of two per cent over ﬁnal 2011 drilling levels. PSAC expects British Columbia to have 640 wells drilled in

A shortage of labour is key in the reducƟon of forecasted wells, according to the Petroleum Services AssociaƟon of Canada. File photo

2012, an increase of three per cent from last year. Saskatchewan’s drilling rate in 2012 will see a six per cent rise over 2011 to 3,739 wells, and drilling levels in Manitoba will move up by 14 per cent to 665 wells. PSAC presents updates to their Drilling Activity Forecast quarterly with the mid-year update scheduled to be presented on April 25. “We are optimistic that our forecast update at the midyear point will show relative stability from our now updated forecast of 13,350 wells, though we will still be feeling the eﬀects of balmy weather and a labour shortage that is not going away,” said Salkeld. “We are looking at new ways of presenting the forecast numbers to tie them more directly to the costs of drilling in various formations across the Western Canadian Sedimentary Basin (WCSB), and we are sure the information will be insightful for people working through future ﬁnancial and operational business plans.” PSAC is the national trade association representing the service, supply and manufacturing sectors within the upstream petroleum industry. The organization represents a diverse range of nearly 260 member companies, employing more than 58,000 people and contracting almost exclusively to oil and gas exploration and production companies.

PIPELINE NEWS March 2012 Packers Plus successfully tested some new compleƟon technologies including the SF Cementor stage collar during a record installaƟon of a 60 stage open hole compleƟon in the Marcellus shale gas play in the U.S. Image submiƩed

Packers Plus raises bar on completions Calgary – Packers Plus has set a record with the ﬁrst installation of a 60 stage open hole completion in the U.S. Marcellus shale gas play using their newest completion technologies and products. The feat was accomplished in December with a completions system featuring 124 tool assemblies in a row. “This job in the Marcellus Shale demonstrates the breadth and depth of our technology,” said Dan Themig, president of Packers Plus in a news release. “We had no issues sending 61 RockSEAL packers downhole in a 3,600 ft. lateral. This hybrid system features our latest technological

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innovations in one well. “We are seeing that operators want more and more stages. Our work in the Marcellus, James Lime, Bakken and other U.S. formations has all moved in this direction. “With our most recent product launches, we have answered the need for more stages and this job demonstrates our ability in this area.” The milestone completion in the Marcellus included Packers Plus’ new RepeaterPORT sleeve and SF Cementor stage collar in a hybrid of their StackFRAC and QuickFRAC multistage fracturing systems. Themig said the RepeatorPort sleeve represents the next phase of technology for the company. “What this tool allows us to do is greatly increase stage numbers,” said Themig in an online product video. “The way we are able to do that is we can actually drop the same size ball multiple times

and activate specific ports within the system. “Essentially it will give us up to 60 stages in its current active release form.” The RepeatorPORT sleeve is run in conjunction with a FracPORT sleeve with the same ball seat size. Each sleeve is run between two RockSEAL II packers to allow specific zones of the wellbore to be isolated and selectively fractured. The RepeatorPORT sleeve effectively multiplies the number of available stages that can be fractured. There are a variety of ball seat sizes, allowing numerous stages to be run in sequence. “The advantage for operators is that they can increase stages,” added Themig. “The one factor that tends to increase ultimate recovery is more stages. It’s is not necessarily larger jobs, but it tends to be additional stages that increases recovery.” ɸ Page C5

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PIPELINE NEWS March 2012

Cranes

Can you count the booms in this picture? A swarm of cranes worked on one of the draglines south of Estevan on Jan. 23. A hint: it’s more than three. Photo by Brian Zinchuk

When your well site, lease or tankage requires containment, call JK Containments for information on how we will save you time and money!

60 frac stages ɺ Page C4 Packers Plus worked closely with the operator in the Marcellus in the planning stages to ensure that the open hole system met all of the operator’s design requirements. This included detailed pre-job calculations and full operational contingency plans. “Preparation before the job was key,” said James Athans, U.S. general manager. “It was a complex design that met the unique requirements of the operator.” The project included the use of the new SF Cementor collar developed by Packers Plus to help operators improve operational eﬃciencies of open hole, cementedback completions.

This methodology eliminates the need for intermediate casing, resulting in significant reductions in wellbore construction costs. Cemented-back completions are applicable in any field where there is sufficient wellbore stability to maintain integrity while the horizontal is being drilled. In another online product video, Themig said there are four benefits of the SF Cementer over any competing product in the market that make it a bullet proof tool for completions. “Number one, no plugs are required at any time,” he said. “Number two, there is no drill-out required with regard to

plugs and rubber that can kind of hang around and cause problems later on. “Number three, we have addressed the seal issue by delivering a high grade seal rated either 10,000 or 15,000 psi that includes redundancy.” “Lastly, we have a secondary closing sleeve. If there are any issues that develop we can go in and mechanically shift a sleeve to the closed position to provide a secondary sealing regardless of the situation.”

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PIPELINE NEWS March 2012

Cold Lake steam project to generate jobs $2 Billion expansion of CSS operations Cold Lake – Imperial Oil Limited will help to turn Cold Lake into a hotbed of oilﬁeld construction in 2012. The Calgary-based company is set to start work on the Nabiye project, a $2 billion expansion of its cyclic steam stimulation operations in the area. The project could provide employment for up to 1,000 construction workers, the number required at peak construction of Imperial’s Mahkeses plant that began operation in Cold Lake in 2002. Nabiye will allow Imperial access to 280 million barrels of new recoverable reserves of bitumen.

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The expansion project will increase Imperial’s production at Cold Lake by about 40,000 barrels of bitumen a day to approximately 200,000 bbl. with an expected start-up by the end of 2014. “It is a cyclic process so production varies both up and down depending on reservoir performance and the efficiency of the steam cycle,” said Imperial spokesman Pius Rolheiser. “Ultimately production will exceed 200,000 barrels. Our previous record was 150,000. We achieved 160,000 last year. “Production for 2012 could be higher or lower. It depends on the cyclic nature of the recovery process.” The Nabiye expansion will include development of a new steam generation and bitumen-processing plant, field production pads and associated facilities. The project received regulatory approval in 2004 and will be built with amended improvements approved in 2010 including a 170 megawatt co-generation plant and a reduced footprint for field production pads. “The 170 megawatt co-generation facility will be very similar to the one that we built as part of Mahkeses,” said Rolheiser. “As well, there will be a reduction in the number of pads that we need. We will significantly reduce the surface footprint but this allow us to recover the same resource. “We were able to do that because of advances in horizontal drilling technology. We can keep the surface footprint smaller but still access the same resource.” Rolheiser said some construction work took place in 2010 and 2011 with preliminary grading and clearing of the plant site along with the construction of the access road. “We will start to significantly ramp up construction work once we award the major contracts,” said Rolheiser who noted the project is highly anticipated in the community. ɸ Page C7

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PIPELINE NEWS March 2012

Imperial Oil’s planned Nabiye steam-generaƟon and bitumen-processing plant at Cold Lake will have a well pad and footprint similar to the Mahkeses faciliƟes built by Imperial in 2002 shown in this aerial photo. The new Nabiye expansion will also include a 170MW co-generaƟon facility, which consumes natural gas to generate electricity and uses the excess heat to generate steam. Photo submiƩed

ɺ Page C6 “Certainly all the indications that we had from all of the open houses on this is that the community is very supportive and is looking forward to the economic opportunities and the business opportunities that it will bring,” said Rolheiser. “We’ve been talking about this for quite awhile. We had regulatory approval for this back in 2004. We didn’t immediately proceed with it because there was other work at Cold Lake that we wanted to do prior to the expansion. “We wanted to do some ‘debottlenecking’ work to optimize performance from our existing plants and facilities. “Back in 2008 when we started to advance planning and design work, we let the local community know that we were reinitiating work on this project.

“There has been significant interest from the community in it because of the jobs and the economic benefits that it will provide,” Rolheiser said. Imperial has yet to decide if they will set up a work camp on site which is a 10 minute drive from the company’s central field operations and a 40 minute drive from Cold Lake. Imperial’s Cold Lake facility is the largest and longest running in situ oilsands operations in Canada and includes the Leming, Maskwa, Mahihkan and Mahkese steam generation and bitumen production plants. In other news, Imperial reports construction was 87 per cent compete by Feb. 1 on the first phase

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of it Kearl surface mining operation northeast of Fort McMurray, and is on target for start-up by the end of 2012. Initial production is targeted at 110,000 barrels of bitumen a day with a subsequent increase to 145,000 bbl. An additional production rate of 110,000 bpd will be brought on stream by late 2015 with the latest expansion phase announced in December. “It will essentially double the size of what we are currently building at Kearl,” said Rolheiser. Future debottlenecking of both phases will increase output to regulatory capacity of 345,000 bpd by 2020.

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PIPELINE NEWS March 2012

Husky triples Q4 proÀts: to drill in 2012 Calgary – Husky Energy proﬁts tripled in the fourth quarter to $408 million compared

to $139 million a year earlier thanks to increased production and higher crude oil prices.

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Production in the quarter grew 14 per cent to 318,900 oil equivalent barrels a day. The Calgary based company noted it benefited from strong production growth, higher crude oil prices and improved upgrading and refining profit margins. The detailed report on Feb. 9 indicated Husky earned a profit of $2.2 billion in 2011 compared with $947million in 2010. “The positive results in the fourth quarter capped a solid year of performance for the company,” said CEO Asim Ghosh in a news release. “We were able to capitalize on improved crude oil prices and refining margins by increasing production and by maintaining high operational performance in our upgrading and refining facilities.” In addition to the strong financial performance, Husky achieved a number of key devel-

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opment milestones in its three growth pillars in the Asia Pacific region, the Alberta oil sands, and the Atlantic region. “We are pleased with the progress we made to increase near-term production and our 2012 capital expenditure program is designed to build on that momentum,” said Ghosh. Ghosh advised that production in 2012 will be affected by major maintenance shutdowns of offshore facilities in the Atlantic region of Canada. Husky added to oil resource land base in Western Canada in the fourth quarter, which now totals approximately 800,000 net acres. The company drilled 33 net wells in the quarter. Oungre At the Oungre Bakken project in south central Saskatchewan, five wells were drilled in the quarter, bringing the total to 12 wells for the year. Husky says the results at Oungre have been positive and is planning to drill an additional 12 wells in

2012. The company also accelerated its operations at the Redwater Viking project in Alberta, with eight horizontal wells drilled in the fourth quarter. Most of these wells are waiting to be tied-in and are expected to be on production in the ﬁrst quarter of 2012. Viking In the southwestern Saskatchewan, Viking oil resource play, 10 horizontal wells were drilled in the fourth quarter, for a total of 16 wells in 2011. Approximately 50 Redwater and Saskatchewan Viking wells are planned for 2012. The company drilled the ﬁrst of two vertical exploration wells in the Central Mackenzie Valley in the Northwest Territories in January. Husky’s gas resource land base consists of approximately 900,000 acres, with activities focused on liquids-rich gas resource plays at Ansell, Kaybob and Kakwa. The company drilled a total of 42 (net) Cardium and multi-zone

wells last year. Construction of additional offload capacity was completed in the fourth quarter, bringing total production capacity at Ansell to over 50 million cubic feet per day and 2,000 bpd of liquids. Heavy oil Husky is continuing its heavy oil strategy is to increasingly transition towards a greater percentage of production from long-life thermal projects, while maintaining production volumes. Construction of the 8,000 bpd Pikes Peak South thermal project 42 kilometres east of Lloydminster is progressing on schedule and was approximately 80 per cent complete by year-end. Husky says the project is within cost estimates with first oil expected in mid-2012. The 3,000 bpd Paradise Hill thermal development northeast of Lloydminster is also progressing on schedule with the first oil to be produced in the third quarter of 2012. ɸ Page C9

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PIPELINE NEWS March 2012

Husky beneĮted from higher reĮnery margins in its fourth quarter results released on Feb. 9. The results include producƟon from the Lloydminster Husky Upgrader pictured in this aerial photo. Photo submiƩed

ɺ Page C8 The company reports a single well pair thermal pilot achieved ﬁrst oil at the company’s Rush Lake project in October and performance is in line with expectations. Phase 1 of Husky’s Sunrise Energy project in the Athabasca oil sands continues to progress on schedule towards planned ﬁrst production in 2014. More than half of the 49 planned SAGD well pairs for the 60,000 bpd (30,000 bpd net to Husky) project are complete and drilling costs are trending on budget. Construction activities are accelerating on site,

with installation of foundations for the central processing facility continuing and the delivery of the ﬁrst major equipment commencing in January. Construction of a 1,500-person worker camp is expected to be completed by the end of March. A contract for the Design Basis Memorandum and FEED (front end engineering design) for the next development stage of the Sunrise project was awarded in the fourth quarter and FEED is expected to be completed in 2013. Husky also reports a 300,000 barrel storage tank at the Hardisty terminal in Alberta is on target to be in service in early 2012.

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Lampman, Saskatchewan Contact: Gordon Waugh Bus.: (306) 487-3178 Cell: (306) 421-0566 Fax: (306) 487-3253

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PIPELINE NEWS March 2012

e C m u o r c l l er e s W Estevan OTS Bonspiel Mar. 22-25

GO LU OD CK The 53rd Annual Estevan Oilﬁeld Technical Society Oilmen's Bonspiel takes place at the Estevan Curling Rink March 22-25. It's the culmination of the oilmen curling season in southeast Saskatchewan. "We're hoping for 64 teams," said Bernie Bjorndalen, one of the organizers. "We came close last year."

FINANCIAL 403B 9th Avenue Estevan, SK (306) 634.7979 Toll Free: (877) 770.0948 Fax: (306) 636.2267 info@spectraÀnancial.ca Ron Areshenkoff & Reynold Bert

Curling commences on the Thursday, with the supper and dance on the Friday. Each rink is guaranteed four games, with A, B, C, D1 and D2 events. The ﬁnal takes place Sunday afternoon. "Most of the proﬁt goes back into the community," Bjorndalen said. Registration information can be found at http://www.estevanots.com.

Sweeping you in the direction of creating, insuring & enhancing your personal wealth

Welcome OTS Curlers

Welcome Curlers! (A Division of Total Energy Services Ltd.)

Midale ph: 306.458.2811 Fax: 306.458.2813 midale@totaloilÀeld.ca

Carlyle Ph: 453-4401 Fax: 453-4402 carlyle@totaloilÀeld.ca

PIPELINE NEWS March 2012

Good Luck Curlers

ANNER BIT SERVICE

LEVEL-PRO Tank Gauges & MESSENGER Communication - SALES & RENTALS 109 Main Street Lampman, Sask. Phone: (306) 487-2536 Sales@TheQuestGroup.co Acutec@TheQuestGroup.co

Good Luck Curling Oilmen!

Welcome curlers, have a great time! CHAD FROESE

CELL: 306-421-3726 RES: 306-634-7538 OFFICE: 306-388-2941

WELCOME OTS CURLERS Your Home Away From Home

Well Servicing E bbennett@suncountrywellservicing.ca F 634-1200 • Estevan, SK

C 421-3904

404 Kensington Ave. Estevan 306-634-8332 Email: gm.cn923@choicehotels.com

Welcome to Estevan Curlers

Welcome and good luck!

Good Luck!

216 Souris Avenue Estevan

634-7209

o t e m o c l We

Estevan! Good luck curling

RON’S

SVEIN BRYEIDE CONSTRUCTION Ltd. HWY. 47 N. AT BENSON

634-6081

Welcome Oilmen! Good Luck

Serving Southeast SK, Southwest Manitoba & North Dakota

since 1956 24 Hour Dispatch • Oxbow: 306-483-2848 Pipestone: 204-854-2231 • Waskada: 204-673-2284

Have fun in Estevan, Oilmen!

481 Devonian St. Ph: 634-2114 or 634-2143

88 Devonian Street, Estevan, SK Ph:634-4041 (24hr) • Fax: 634-4040

www.samstrucking.ca

Welcome to the Energy City

REDRIVER LUMBER LTD.

Welcome to the Energy City!

Good Luck Curlers! “Your Home of After Sales Service”

Senchuk Ford Sales Ltd. 118 Souris Ave. N., Estevan

Estevan, Sask. 634-5555 Email: skylift@sasktel.net • Website: www.skyliftservices.com

Have Fun Curlers! Richard Garton Consulting Ltd.

634-3696 Toll Free: 1-877-880-9094 (sales) 1-877-883-2576 (service) • E-mail: sales@senchuk.com

www.senchukford.ca

Good Luck & Have Fun!

The Work Wear Store Ltd.

1210 10 4TH 4TH ST. ST ESTEVAN

634-8232

112 11 2 2ND 2ND ST. ST WEYBURN

842-3006

C11

202 20 2 MAIN MAIN CARLYLE

453-6167

Cell 421-1759 • Fax: 487-3298 Box 249, Lampman, SK S0C 1N0 email: rgcl@sasktel.net

421-7794 ryansaxon@saskte.net

C12

PIPELINE NEWS March 2012

Hit the Button

with promotional products from

Have Fun Curling!

OILMEN

lancew@aspentrailer.com www.aspentrailer.com 6017-84th Street S.E. Calgary, AB T2C 4S1

Lance Wotherspoon Regional Sales Manager

516 Nesbitt Drive (behind Power Dodge) Estevan • 634-2631

Good Luck Curlers!!

[T] 403 236 2244 [F] 403 236 8829 [C] 403 813 6319 [Toll Free] 877 236 2244

634-8384 • 1209 - 4th Street, Estevan

Best of Luck Curling, Oilmen!

Good Luck!

5 STREET Autobody 634-7101 th

4S Services

Oilﬁeld Consulting LTD. Colgate, Sk • 306-456-2297 • 306-861-7189

Welcome to the Energy City, OTS!

Welcome Curlers

HAVE FUN CURLING! BIG D’S LEASE SERVICE

DISTRIBUTION INC. 315A Kensington Avenue Estevan, SK Phone: (306) 634-2835 Fax: (306) 634-2797 www.apexdistribution.com

Mike Brasseur Ph: 634-4554 • Cell: 461-8111 • www.bigcountryenergy.com

Good Luck Curling Oilmen! 301 Kensington Ave. Estevan, SK. Phone: (306)

634-3616

Have Fun!

3902 - 75th Ave. Leduc, AB. Phone: (888)

Sweep Hard Oilmen!

COMPRESSION

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(306) 457-7033 (306) 457-7673

Welcome To The Energy City! Enjoy the Bonspiel

www.annugas.com

835-0541

www.bbaxtertransport.ca

601 - 5th St., Estevan, Sk.

LTD. Toll Free

1.866.ANNUGAS

Ph: (306) 634-9424

Welcome to the OTS BONSPIEL

W G

BRENT GEDAK WELDING LTD.

126 Lamoro St. just off Hwy 39 W. of Estevan

OfÀce: (306) 634-5150

www.brentgedakwelding.com

1411 HWY 18, CARNDUFF, SK S0C 0S0 PHONE: 306-482-5105 • FAX: 306-482-5213

www.candnoilÀeld.com

PIPELINE NEWS March 2012

Y R HUR D! R A H

C13

Have Fun Curlers! Estevan, SK, 634-7276

Best of Luck Curling, Oilmen!

Have Fun Curling! Phone: (306) 388-2652 Fax: (306) 388-2345 24 Hour Service

www.prairiewestern.com

Good Luck Oilmen! Ph: 634-8085 • Fax: 634-8025

WOOD COUNTRY ESTEVAN MCLEAN TISDALE Ph: (306) 634-5111 • Fax: (306) 634-8441 407 Kensington Avenue, Estevan • www.wood-country.com

ROCK TALK!

Trevor 306.483.7777

C. Welcome to the N I T R O Ptchewan S N A R T a OUDY hton, Sask

Stoug

OTS e h t to e m o Welc el! i p s n Bo

Office (306) 457-2785 Cell (306) 457-7692

Good Luck, Oilmen! JOHNSON

PLUMBING & HEATING LTD. Serving Estevan & Area since 1967 1037 - 5th Street • Estevan - Ph: 634-5172 • E-mail: jph@sasktel.net

OTS Bonspiel G.W. Trenching & Hauling Ltd. Serving the OilÀeld in S.E. Sask. for 36 years!

Lampman, Saskatchewan Bus.: (306) 487-3178 • Cell: (306) 421-0566

When your wellsite, lease or tankage requires containment call

GOOD LUCK CURLING!

Three Star TRUCKING LTD. 443-2424

BOX 160, ALIDA, SASK. S0C 0B0

Best of Luck Curling!!

RIG MOVING Phone: 482-3244

Good Luck Curlers!

G.T. & H

HOLDINGS INC. Estevan, SK Chad - Cell: (306) 421-1896 Garry - Cell: (306) 421-0529

Welcome Oilmen!

Jayson King 306.736.9169 Stoughton, SK www.jkcontainments.com

Have Fun Curling!!

Corner of Kensington Ave. & King Street, Estevan • Phone: 634-3783

C14

PIPELINE NEWS March 2012

Have Fun Guys!

Welcome Oilmen. Have fun curling!

Estevan Trophy & Engraving Phone: 634-6005 • estevantrophy@sasktel.net

T. K. Trailer Sales

WHO A WHO A

Manor, Sask. Ph: 1-306-448-2260; Cell: 1-306-575-7116 www.pjtrailers.com

Welcome OTS!

Good Luck Curlers!!

For your Industrial Coveralls...

Best of Luck!

• Sell them • Clean them

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See us for your custom laundry Ph: 306 636 2291 Fax: 306 637 2567

#7 Highway 39 East Estevan SK, S4A 0W3

Welcome Oilmen! Good Luck Curling

Highway 39 East, Estevan Phone: 637-2060 Fax: 637-2065

204 Souris Avenue North, Estevan

634-4417

SWEEP OILMEN!

Welcome to the Energy City! 62 DEVONIAN ST. ESTEVAN, SK. PH: 637-2180 FAX: 637-2181

www.plainsenvironmental.com

Have fun curling oilmen! en!

Have Fun Curlers!

NEW-DRILL

NATIONAL OILWELL VARCO

GENERATORS

Phone Toby: 577-1907 Good Luck Curlers!

Cordell Janssen District Manager Downhole

93 Panteluk Street, Kensington Avenue N, Estevan, SK

PHONE: 306-634-8828 • FAX: 306-634-7747 cordell.janssen@nov.com • www.nov.com

Good Luck Curlers!

Welcome to the Energy City

Enjoy your stay Percy H. Davis Customs Brokers Ltd. North Portal • Phone: 634-5454

GOOD LUCK CURLERS! MAX REFRACTORY SERVICES & RENTALS 422 3RD. STREET, ESTEVAN RICHARD (RICK) FOSTER SUPERINTENDENT PH: (306)230•7798 FAX: (306)634•8212

L & C Trucking

Cell: (306) 421-9295; Shop: 433-2059; Fax: 433-2069

24 Hwy. 39 E. Estevan

TOLL FREE 1-888-532-5526 Creelman, SK

Phone: 634-5519 or 634-7341

#6-461 King St. Estevan • 637-3460 www.petrobakken.com

Larry Allan

E-MAIL: maxrefrac@sasktel.net WEB SITE: MAXREFRACTORY.CA

PIPELINE NEWS March 2012

Welcome Oilmen Welcome Curlers!

C15

Hurry Hard! Have fun curling!

For reservations call (306) 458-2646 or (306) 458-2580 90 Macoun Avenue, Midale, Sk. S0C 1S0 Fax: (306) 458-2767 Email: ComeOnInnSuites@gmail.com

Curly’s Pick

er Service Ltd.

Mark T. (Curly) Hirsch

Have Fun Curling Oilmen! 1595 Dieppe Cres. Estevan, Sask. S4A 1W8

Secor CertiÅed Cell: (306) 461-5898 Fax: (306) 634-6690

Have Fun Curling!! Day

Construction Ltd. Carnduff, SK.

Phone: (306) 482-3244

Good Luck Curling Oilmen!

1120 6th Street, Estevan Ph: 634-2255 • Toll Free: 1-800-214-8848 choice.srv@sasktel.net

1411 HWY 18, CARNDUFF, SK S0C 0S0 PHONE: 306-482-5105 • FAX: 306-482-5213

www.candnoilÀeld.com

Welcome Curlers!!

:HOFRPH &XUOHUV To us, your image is everything! 405 Kensignton Ave., Estevan, Sk. 634-9846 • www.crownad.ca E: promo@crownad,ca • E: signs@crownad.ca

Welcome To Estevan!!

www.cefranklin.com

Good Luck Oilmen!

• Screw Pilings Sales and Installs • General OilÀeld Hauling • Skid Steer Service • Concrete pumping

Davin Emmel

Marty Hanson

Cell: (306) 421-1986

Cell: (306) 421-5016

Estevan, Sask

dartservices@sasktel.net

Welcome to the Energy City!

Estevan Saskatoon Regina Winnipeg

89 Escana Street Estevan Sk. Phone: 637.2121 Toll Free: 1.866.332.2121

Good luck curling!

Fun Haverling! Cu

Doreen Eagles, MLA Estevan Constituency OfÀce

1108 4th Street, Estevan Phone: 1-306-634-7311 Toll Free: 1-866-284-7496

634-6456 • 1-800-DAYS-INN (329-7466) 1305 9th Street, Estevan • HWY 47 N • www.daysinn.ca

Welcome Curlers! Best of Luck! Contact Dale at 861-3635

Estevan Office: Phone: (306) 634-2681 • Fax: (306) 636-7227

HAVE FUN CURLING www.eagleoilÀeldservices.com

Arcola, SK • 455-2705

C16

PIPELINE NEWS March 2012

Have fun in Estevan, oilmen!

Welcome Oilmen!

â&#x20AC;&#x153;We Dispatch for the Oilpatchâ&#x20AC;?

#1 Hwy 18, Oxbow, Saskatchewan 306-483-5132 â&#x20AC;˘ www.ensignenergy.com

Welcome Oilmen & Good Luck!

738 5th Street, Estevan Phone: 634-3522

Good Luck & Have Fun Oilmen!

Best of luck curling! * Formerly â&#x20AC;&#x153;Three Star Environmentalâ&#x20AC;?

306-453-4475

FAX: 306-453-4476 BOX 40, CARLYLE, SASK. S0C 0R0 www.evergreenenviro.ca

Welcome to Estevan Curlers! Best of Luck!

Girard Bulk Service Ltd.

GESCAN Division of Sonepar Distribution Inc. Box 1518, 101 6th Street, Estevan, Saskatchewan S4A 2L7 Tel: (306) 634-8655 Fax: (306) 634-8028

SWEEP OILMEN!

New location: 413 Mississippian Drive Phone: 634-7892 â&#x20AC;˘ www.ipc-sk.ca

Welcome Oilmen, have fun curling! 74 Devonian Street â&#x20AC;˘ 634-9966

HAVE FUN IN ESTEVAN OILMEN!

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24 Hour Service - 634-8737

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SWEEP! SWEEP! GOOD LUCK

HUTTâ&#x20AC;&#x2122;S TRUCKING LTD. Ph: (306) 487-2608 â&#x20AC;˘ E: huttholdings@sasktel.net

Have Fun Curlers! #6 Mehler Drive, KRJ Industrial Park 421-9576 or 421-2244

Welcome OTS Curlers!

:\WYLTL :[YLL[

ESTEVAN 134 4th Street

637-4370

OXBOW 483-2826

ALIDA 443-2466

CARLYLE 453-2262

REDVERS 452-3216

Welcome Oilmen Have Fun Curling! 2PUN :[YLL[ , ,Z[L]HU :2 7OVUL! -H_!

Welcome Oilmen! KENDALL'S AUTO ELECTRIC LTD. 1020 6th Street, Estevan â&#x20AC;˘ 634-2312

Welcome to Estevan.

Have fun!

Box 208 â&#x20AC;˘ Estevan, SK â&#x20AC;˘ S4A 2A3 461-8471

PIPELINE NEWS March 2012

C17

Three oilmen prepare to get in the cage

Story & photos by Brian Zinchuk Estevan – Getting up from their third or fourth round of sparring, Derek Daku noticed something. “I’ve got a black eye,” he said. “It’s the same one as last time.” “It’s not bad,” responded his sparring partner, fellow heavyweight Wade Baldwin. “It will be tomorrow,” Daku said. “I feel bad,” Baldwin said. “Why?” Daku asked, before

getting back to business, deﬂecting kicks. “Nothing like two guys kicking the crap out of each other,” Baldwin said. “And enjoying it,” Daku ﬁnished. Such is a practice in the lead-up to Hard Knocks 21, a mixed martial arts event to be held in Spectra Place in Estevan on March 3. Pipeline News, got a chance to follow three of the participants, all oilpatch workers, in their preparations. ɸ Page C18

Top: Derek Daku of Fiberspar. Right: Wade Baldwin of Import Tools. BoƩom: Felix Jimenez of Carson Energy Services.

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C18

PIPELINE NEWS March 2012

C19

Wade Baldwin blocks a punch. Derek Daku gets another black eye.

All three Įghters warm-up.

Felix Jimenez jumps holding a weight.

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ɺ Page C17 Felix Jimenez is a pipeline foreman with Carson Energy Services, now a division of Flint Energy Services. Derek Daku is the manager of Fiberspar in Estevan, while Wade Baldwin is assistant manager at Import Tool Corp., also in Estevan. All three are heavyweights, and train with Estevan Combat Sports and Fitness. Baldwin and Jimenez train at Excel Fitness in Estevan, while Daku pumps iron at the Estevan Leisure Centre. Jimenez has been doing mixed martial arts for a couple of years now. “I was in kick boxing before, and tae kwon do in my teenage years,” he said. Jimenez has been in Estevan for four-and-a-half years, always working with Carson. “I grew up in Ontario, originally from the Dominican Republic,” he said. His first bout was last October at Hard Knocks 16, the first event of its type in Estevan. Asked what it was like going in the cage in front of hundreds of people, he said, “I honestly couldn’t be mad at the guy. You fight with your heart. You try to be the one with the hand up with the judge. It’s better to control yourself.” His training regimen while prepping for a fight is long and exhausting. “I get up at 4:30 a.m. I go to Excel Fitness, I work out there for an hour before I go to work. I work 11-and-a-half to 12 hours, then I do MMA for two-and-ahalf hours, as much as I can.” It doesn’t leave time for much else. Asked, “When do you sleep?” He responded, “Exactly.” On this Friday evening of open floor practice, Jimenez stays longer than the rest, putting in a round of “The Gauntlet.” It’s a gruelling workout that starts with a hard five minute run on the treadmill, then progresses through advanced pushups, striking a tire with a sledge hammer, leaping in the air holding a weight over his head, throwing a heavy bag over his shoulder, beating on a dummy, skipping, and dragging his trainer who is pulling back on a skipping rope wrapped around his waist. “No pain, no gain,” he said, adding that as of early February, he was still looking for a sponsor. Jimenez is taking on an opponent from La Ronge, one who Baldwin lost to in Hard Knocks 18. Baldwin jokes and says he doesn’t want to talk about

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that. Earlier in the evening, Baldwin said to Daku, “You kicked my ass then,” after they concluded a four-and-a-half minute session. Actual fights are three minutes a round, so if they can go 50 per cent longer, they should be able to handle the actual fight. “If you can go five minutes, you can fight three,” Baldwin said. “When you got me there, it was every last bit of air left,” Daku told Baldwin after their ensuing round of practice. In sparring, the punches are more like taps, but the takedowns and subsequent wrestling is very much real. Each man is solidly built, and there’s a lot of force involved. Daku and Baldwin routinely throw each other up in the air. The floor moves are reminiscent of freestyle wrestling, similar to what is seen in the Olympics. Except wrestling is pretty tame by comparison. Daku and Baldwin have been training together a lot. “You don’t get hurt that way as much,” Baldwin said. “There are a lot of inju-

ries in training.” This would be proven out an hour later, with Daku’s eye. “I’ve been training for three years. My first fight was last October.” This time Baldwin is taking on a heavyweight from Winnipeg who apparently has been in some jujitsu tournaments. Asked if he reviewed footage of his opponent’s previous fights, he said, “It’s hard. There’s not much footage on amateur fights.” Going in the cage, he said, “It’s hard not to let the adrenalin get to you. Adrenalin is flowing through your veins. It’ll be better the second time.” Daku spent three years in the army, including live fire exercises, but to him, going into the cage last October for the first time topped that. “It was the most overwhelming thing I’ve ever done. The crowds cheer. You don’t want to lose in front of everyone. They’re mostly oilpatch guys. “When that door locks on the cage, it’s a different feeling. You’re not leaving,” he said. “You don’t want to let everybody in your town down,” Daku said. He won by a knockout. “I kickboxed when I was 20, when I was in the military. I picked this up again four years ago,” Daku said. ɸ Page C20

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Office - Kola, MB. 204-556-2464 Dan O’Connor Operations Manager 204-748-5088

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PIPELINE NEWS March 2012

Derek Daku, leŌ and Wade Balwin get serious while sparing.

• Horizontal 80 m3 frac tanks ɺ Page C19 “I had four fights lined up in the last year, and they were all cancelled. Guys were hurt, or backed out.” With the current promoter, Hard Knocks Fighting, he said, “They have a pool of 200 guys. If you’re on the card, you are on the card.” Daku is 46, making him an older fighter compared to others on the card. “Everyone else is making a note of that. I proved them wrong the last time,” he said. “I actually feel I’m in better shape now than when I was 30. If I sit around and don’t do anything, I get out of shape. I get bored if I sit around.” Daku used to play senior hockey with the Bienfait Coalers until two years ago. On the ice, he played the enforcer role. “There used to be piles of fights,” he said. “Hockey fights are all fists. This MMA is three or four disciplines. “It’s a chess game, is what it is. You want to keep the other guy at what you are best at.” Having a variety of fighting skills is “more tools in the toolbox,” he said. The two months prior to a fight are intensive training for him. “It takes up all your time. You have to have an understanding wife,” Daku said. “I come to work at 6:30 a.m. I train late in the afternoon, and I do the gym at night. It doesn’t leave time for much else.” Noting there are fights planned for the next two years, Daku said, “I’m going to fight every one I can.” For the March event, Daku is front and centre on the posters plastered through Estevan, flanked by Baldwin and Jimenez. “No pressure there,” Daku said.

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PIPELINE NEWS March 2012

C21

CAPP backs Oliver’s call for regulatory reform Calgary – The Canadian Association of Petroleum Producers is tipping their hat to a call by federal Natural Resources Minister Joe Oliver to reform the regulatory process to improve the federal government’s project review process. Oliver describes the current regulatory process as “slow, complex and cumbersome.” CAPP president Dave Collyer says the existing federal regulatory framework imposes conﬂicting requirements and creates complex, unco-ordinated processes for the review of projects. He believes the cumulative regulatory burden is too often characterized by duplication, delays and incremental costs that undermine economic viability without contributing to better environmental protection. “The three broad themes that must underlie regulatory reform are balancing environmental and economic considerations, improving governmental coordination and tightening process timelines and eﬀectiveness,” Collyer said.

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CAPP’s position is that regulatory competitiveness is crucial to Canada’s oil and gas industry attracting investment capital, growing employment and the economy. Concerted broadly based regulatory reform is required to advance Canada’s competitive position. Regulatory reform represents a signiﬁcant opportunity to improve competitiveness while ensuring responsible environmental outcomes. “It is important to look for ways to reduce administrative burdens on both the public and private sector while improving environmental performance and providing companies with eﬃcient, timely and predictable regulatory processes,” said Collyer. “Such an initiative requires scope and reach

across federal departments and coordination with provincial governments.” In his open letter, Oliver said, “We believe reviews for major projects can be accomplished in a quicker and more streamlined fashion. We do not want projects that are safe, generate thousands of new jobs and open up new export markets, to die in the approval process due to unnecessary delays.” CAPP agrees with the natural resources minister that regulatory reform needs to be addressed with urgency as a matter of Canada’s national interest. CAPP represents upstream oil and natural gas companies that explore for, develop and produce natural gas and crude oil throughout Canada.

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PIPELINE NEWS March 2012

Job placement projects applauded at Lakeland Dr. Lee Arthur, head of the Lakeland College bachelor of applied science in environmental management program oīered at the Vermilion campus oĸciated at this year’s capstone presentaƟons of student job placement projects with oil and gas industry companies, consultants and government agencies.

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Lloydminster – It’s not surprising many of the graduating students of the four-year bachelor of applied science in environmental management program at Lakeland College get butterflies when speaking in public about their job placement experiences. Representatives from host oil and gas companies, consulting firms and government agencies are on hand to follow their every word – and conduct job interviews as well. The annual ordeal, called “capstone presentations” because they cap off the final degree requirements, took place this year at the Alumni Theatre Hall at the Vermilion campus on Jan. 29. “This is the culmination of four years of work as they prepare to head out in the workforce,” said Glenn Charlesworth, Lakeland president. “We have such great support from industry and from government in helping these students learn the ropes. “Without our practicum partners, we just couldn’t do it. It’s very synergistic because the students are out there doing some really good work for them.” The eight-month job placement projects presented this year were made possible by a long list of industry partners such as Husky Energy, KB Prairie Consulting Ltd., Stantec Engineering, Tera Environmental and Ridgeline Environmental. “The project is a win/win for industry,” said Dr. Lee Arthur who heads the degree program. “It’s a project that is of value to the employer or the host agency, and as well, relates to the academic studies that the student has taken. “The practicums are very strong with lots of field experience for the student. They get to work with people working in industry. They have a qualified environmental manager at the host agency that is their work place supervisor. “The practicum is cutting edge experience for the students, and they are right on target with some of the new issues with industry. “They get exposure to those upfront, and get a good start on their career.” Arthur said the majority of the students presenting work term projects have already been offered full-time jobs by their host employer in a hot job market. “There is a high demand for grads this year, and there is intense competition with students for practicum placements starting in the summer of 2012,” he said. “We’ve got a number of oil companies like Husky Energy that source students as practicum students, and then if they work out, they can roll them into full-time employment. ɸ Page C23

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The 8 month job interview breeds success ɺ Page C22 “There’s lot of environmental legislation out there and regulatory compliance from an environmental perspective that is key to industry, so they need people with that type of training. “We also have government here interviewing students for an enforcement role as well,” said Arthur. Other Industry partners on campus that day were Alberta Environment, K2 Mining and PCL, Trace Associates, Nelson Environmental Remediation, Signum Consulting Ltd. AMEC and TECK Coal Ltd. Job opportunities for environmental management grads are plentiful in Saskatchewan and Alberta right now thanks to a constant ﬂow of new federal and provincial regulations and legislation in environmental protection. “Even at the municipal level, we are now starting to see municipal governments looking for employees in environmental training as environmental co-ordinators,” said Arthur. Alberta’s 2010 Reclamation Criteria for Wellsites and Associated Facilities for example, has created a demand for environmental specialists for reclaiming the landscape for cultivated lands, forested lands, and native grasslands. “It’s a hot source of debate among industry and government in terms of its eﬀectiveness,” said Arthur. “There is a lot of interest in that. We’ve set that as our plenary session topic for the day. “We had a couple of students work with the 2010 criteria – one from the government side and another with an environmental consultancy on behalf of the oil industry.” Arthur said the degree program has been running for about 15 years at Lakeland and grown in terms of its reputation with industry and government. “We have an industry advisory committee for the program, so we invite them in at least every second year and have them review our curriculum and give us advice and guidance,” he said. “We value that to a great extent because that’s the only way we can keep pace with new technology and new practices in industry and new regulations.”

C23

Lakeland College president, Glenn Charlesworth says energy industry partnerships with the college are the key to the success of the eight-month pracƟcum for students in the Bachelor of Applied Science in Environmental Management program. Many of the host employers hire the 4th year grads based on the work term experience that some call an “eight month job interview.”

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PIPELINE NEWS March 2012

Sundance looks to increase Muskowekwan land option (Nickle’s Daily Oil Bulletin) - Sundance Energy Corporation said Feb. 6 it has entered into an agreement that could see it gain a new 42,800-acre land option at the Muskowekwan First Nation, located approximately 100 kilometres northwest of Melville. The company said that Muskowekwan Resources Ltd. (MRL), as general partner of the Muskowekwan Limited Partnership and the Muskowekwan First Nation (MFN), has provided Sundance the opportunity to add “signiﬁcant new lands” to its already existing ap-

proximately 15,500-acre permit and joint-venture farm-in agreement on MFN’s lands. Sundance, whose primary focus is exploring First Nation lands in Western Canada, said the additional lands were to be part of the upcoming subsurface land designation vote on Feb. 25. As consideration for the opportunity to add these new lands to the current permit and joint-venture farm-in agreement, Sundance has paid MRL $25,000 and has agreed to issue MRL 100,000 common shares

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and 100,000 common share purchase warrants exercisable at a price of 24 cents per share for a two-year period. The new lands consist of approximately 42,800 acres, of which 27,600 acres are treaty land entitlement lands and 15,700 acres are pre-reserve lands. Including these lands with the Sundance’s existing 15,500-acre home reserve, a positive designation vote will bring the total land package subject to the joint-venture farm-in agreement to approximately 58,300 acres. This is approximately a 3.5-fold areal increase from the original home reserve landholdings. The company noted that pre-reserve lands are lands that are designated for reserve status but have not yet been transferred to full reserve status. This transfer is a straightforward, well-established procedure. If the upcoming vote receives the requisite majority approval, these pre-reserve lands will be designated for surrender of mineral rights to the Crown, which is required before a mineral lease can be applied for. Meanwhile, Sundance said it has drilled one well on each of its Ochapowace and Muskowekwan First Nations permits in southeast Saskatchewan. The Bakken and Lodgepole formations have now been completed on the Ochapowace 6-5 well, with the Bakken having been fractured and the Lodgepole awaiting

a frac as of early February. While waiting for frac services on the Ochapowace 6-5 well, Sundance had sent its service rig to the Muskowekwan 5-3 well to begin conventional completions operations. At the company’s Alexander project in central Alberta, Sundance announced that subject to receiving the applicable regulatory approvals and the availability of equipment, drilling is anticipated to begin on the ﬁrst location on its 50 per cent owned 17,280 acre (8,640 net acre) Alexander First Nations permit at 16-1156-27W4 within four to six weeks. The 16-11 well is positioned less than one mile west of Petro-Reef Resources Ltd.’s 9-12-56-27W4 well, which has been producing from the Detrital formation. According to a Dec. 19, 2011, press release, PetroReef said the 9-12 well was ﬂowing at a net 190 bbl. of oil equivalent per day. The producing Detrital formation in the 9-12 well is one of several formations targeted for Sundance’s 16-11 well. The company also said it will participate as to its 50 per cent interest in a planned nine-square mile, $1-million 3D seismic program covering the northeast portion of the Alexander First Nations permit. Sundance expects to have the 3D seismic program shot and in for processing before the end of March.

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PIPELINE NEWS March 2012

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Maverick OilĮeld Services’ execuƟves Richard Dieser, leŌ, and Fred Reinbold stand in front of a 30-ton QMC picker parked inside their 9,000 sq.-Ō. shop in Provost. The demand is strong for the company’s oilĮeld pipeline and facility construcƟon and transportaƟon services.

Maverick circles its wagons at oil plays Provost, Alta. – The return of boom times in the oilfield has put a smile on the face of Richard Dieser, vice-president of field operations for Maverick Oilfield Services Ltd. in Provost. Maverick specializes in oilfield pipeline and facility construction and transportation and is flat out busy wherever there is an oil play. “We are booming. We had one of our busiest falls on record,” said Dieser. “From July last year to Christmas, it was really busy. January was a little bit slow get going, but it’s all hands on deck for February. We’ve got all our guys working and we are looking for more. “Here in Provost, we are oil based and we are busy. There’s a lot going on in the Kindersley area, right around Provost and everywhere. Anything that is oil based is busy.” Maverick is closing its construction shop in the predominant gas play of Grande Prairie to take advantage of the strong demand for oilfield work based out of Provost and their mud hauling division in Consort. “We are going to

take those assets and redirect them to more oil-based units,” explained Dieser. “In Grande Prairie, we are just not seeing the work and the rates that we are in other places. “Provost has been good. It’s always a competitive market. We are just looking at the best way to utilize our assets to keep our bottom line as good as we can.” In the Provost area, business is exceptionally strong for the pipeline and plant construction, structural steel and pressure pipe welding, and excavating work that Maverick does. “Basically, what Maverick wants to be is a one-stop shop after the service rig leaves,” said Dieser. “We want to be able to do your construction, your maintenance and any welding required and stuﬀ like that. “Here in Provost, we do pipeline plant construction. We have work going on for Pengrowth right now. I’ve got a crew out there. “I’ve got a crew starting a job for Longview (Oil Corp). They will be going all the way to Alameda, east of Estevan. “I’ve had crews

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working fairly steady for EnerPlus. Harvest Energy is a big customer of ours here in Provost. Right now, we are doing mostly facilities and pipelines,” said Dieser. “We are looking at some small pipeline right now for a company named Canadian Abraxas and hopefully, we will have some upcoming pipelines for Twin Butte (Energy) as well.” Maverick is also doing its fair share of oilﬁeld transportation to all points on the compass from Provost under the leadership of Fred Reinbold, general manager. “This area is quite busy. There is lots of drilling in the Kindersley, Dodsland and Elrose area and there is lots going on further south,” said Reinbold. “We do a lot of moving of over-dimensional buildings and tanks from 750 to 2,000 barrels – a lot from Alberta and some from

Saskatchewan down into southeastern Saskatchewan and western Manitoba. “The focus is oil, and that’s where the busy areas right now in southeastern Saskatchewan and western Manitoba. “We have been hauling 2,000 barrel tanks over to Waskada

in Manitoba.” Maverick’s transportation ﬂeet three includes hydraulic tank cradles capable of hauling tanks from 400 to 3,000 barrels and an assortment of double drop combos and trailers, low boys, highboys and picker trucks and winch tractors. Tyler Lawrason,

administrator for the MD of Provost, reports his office is processing about 250 overload approvals a month through their permitting system. “That would be rig moves, service rigs – oilfield related stuff – almost 95 per cent of it would be. ɸ Page C26

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PIPELINE NEWS March 2012 Richard Dieser, vice-president of Įeld operaƟons for Maverick OilĮeld Services, enjoys the opportunity to talk about how his company is doing – along with how he caught the 130 pound marlin that is now serving as an oĸce wall trophy and conversaƟon piece.

ɺ Page C25 “That’s just the overload stuﬀ. We don’t require permits for stuﬀ within legal limits on our roads. We don’t ban our gravel roads. “We do try to maintain a network of arterial high grade gravel roads to facilitate this kind of movement.” Lawrason noted

oilfield activity and transportation within the MD never really “slacked off ’ during the downturn due to the massive dedicated infrastructure at the tank farm at Rosyth near Hardisty. “It’s a good time to be in the oil patch. It’s a positive outlook for awhile,” confirmed Dieser.

“Drilling is up. I don’t think we are going to see the price of oil dip too much. At $100 a barrel, it’s going to be a positive outlook for everybody.” The downside of boom times is a cyclical labour and housing shortage which Maverick is currently experiencing in Provost. “We are looking for

people – one ton foremen, welders especially, equipment operators, labourers – all required positions – truck drivers as well,” said Dieser. “There is a labour shortage right now especially in the busier sectors. “Housing is the same. It’s tough to ﬁnd a place. We actually keep a couple of places for rent to give new employees a place to stay.”

Dieser thinks local assets such as the new $12.3 Crescent Point Place Regional Activity Centre will help draw and retain new employees despite Provost’s small population of just over 2,100. “The town is growing. That’s a shining star of what the town has to offer now. It’s just a great facility,” said Dieser. “When people are looking to relocate to Provost, the size of the town scares them initially, but if we can offer things like that to them, it’s definitely a plus for moving here.” Grassroots events like the annual Kinsmen Splash and Smash to be held this year June 15-17 are also a strong selling point for families to relocate to Provost for jobs and a laid back

lifestyle. Dieser is on the organizing committee, and he can’t wait for his wife Candy to gun their modiﬁed ’79 Ford in this year’s mud race which is sanctioned by the Canadian Mud Racing Organization. Monster trucks, a Tuﬀ Truck competition and lawn mower racing are included in the mix at the Provost Fairgrounds along with a parade, a barbecue and pancake breakfast. “Our sponsorship for that is absolutely huge from the local community and from the oilpatch right to the downtown businessman,” said Dieser who estimates 3,000 to 5,000 people will be in attendance. “It’s been really well received by the community.”

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PIPELINE NEWS March 2012

C27

Lakeland work term leads to a career Wellsite Criteria for Alberta Native Grasslands. Her work for KB Prairie follows the guidelines of the 2010 Reclamation Criteria for Wellsites and Associated Facilities for reclaiming the landscape for cultivated lands, forested lands, and native grasslands. The project involved detailed site assessments (DSAs) at eight well abandonment sites that were seeded in 2008. “We really want to achieve some ecosystem function on the site. That’s really what the new criteria is focused on. That’s what the assessment is geared toward,” said Gatzke.

Chelsea Gatzke, who hails from BelbuƩe, Saskatchewan and currently lives in Lashburn, delivered the opening session on her work term placement project with KB Prairie ConsulƟng Ltd. at Lakeland College at the Vermilion campus. The annual presentaƟons are the Įnal degree requirements for fourth year students in the bachelor of applied science in environmental management program.

Lloydminster – What a diﬀerence a year makes for some fourth year graduates of the bachelor of applied science in environmental management program at Lakeland College at the Vermilion campus. A case in point is grad Chelsea Gatzke who presented the results of her eight month job placement project with KB Prairie Consulting Ltd. in Lloydminster during the opening session of the 2012 capstone presentations that complete the program degree requirements. One year ago, Gatzke, who hails from Belbutte, Saskatchewan near Spiritwood, was oﬀered a practicum by KB Prairie at the same event for the work term project she presented at the Alumni Theatre Hall on Jan. 29. Thanks to her outstanding practicum performance during the summer and fall of

2011, she stepped up the podium this year as a full-time environmental technologist for the Lloydminster consulting company. Her practicum was aimed at helping KB Prairie to assess native inﬁll at abandoned well sites in the Oyen, Alberta area, three years after they were reclaimed and seeded. “I enjoy working for them and they were wonderful through my practicum, and really allowed me to be involved with everything they are working on,” said Gatzke. “I really had a broad experience. I really learned a ton from them, and I really look forward to developing those skills. “The program is great. It sets you up wonderfully with great technical knowledge and a good solid background for the tasks that we need to do in the ﬁeld.”

Gatzke’s project presentation was titled Insights Into the 2010

Leading the applause for Gatzke’s presentation was KB Prairie founder, Ken Bownes and his son Steve Bownes. Steve and a coworker Wes Nash are both project managers at KB Prairie and Lakeland alumni. Bownes’ daughter Sheri is an environmental technologist and a University of Alberta grad. Ken established the company in 1996 that has built a solid reputation for providing clients with soils expertise in the ﬁelds of reclamation and remediation. KB Prairie provides clients with overall

environmental project management including environmental site assessment, land reclamation and remediation services. The company is planning to move into an oﬃce location this year to accommodate growth and new employees after operating for years as a homebased business. “Our main focus is reclamation remediation and all the things that are involved with that such as Phase I, Phase II and Phase III assessments,” said Ken who has more than 30 years experience in the oilﬁeld. ɸ Page C28

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PIPELINE NEWS March 2012 Ken Bownes, leŌ, who founded KB Prairie ConsulƟng Ltd. in Lloydminster and his son, Steve, a project manager, were on hand at the Vermilion campus of Lakeland College on Jan. 29 to watch the work term presentaƟon of Chelsea Gatzke who was oīered a pracƟcum by their company last year at the same event.

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ɺ Page C27 Ken said it was his son, Steve, who hired Gatzke for a job placement in site remediation at the Vermilion campus last year, and she has exceeded their expectations. “She has been excellent,” said Ken. “We are really happy with her. Also, Wes Nash works for us and he’s another good hand. “He graduated with my son in the same year. They have kind of worked together.” “The Lakeland students have a lot of advantage over a university program with the practical aspect. “I think that eight month practicum really prepares the student when they get out into the ﬁeld. They are ready to go to work without too much supervision,” he said. Steve graduated from Lakeland with Wes in 1998 with a diploma in conservation reclamation and went on to get his applied degree in 2001. He also earned his professional agrologist (P. Ag) designation at the U of A that he says is a requirement nowadays for professional sign-oﬀ on reports. “That’s the kind of path I took. I have been working for my dad since 1998. I was helping out with DSAs then and I just continued on,” he said. “I had a few other

jobs in between with other environmental companies, but I always came back to the family run company.” Steve said the decision to hire Chelsea for the work placement was a well timed move that led to an offer of full-time employment with the company in a strong and competitive job market. “She’s been really good. We had a lot of DSAs on the native rangelands and using the new criteria just coming out of school – she had some courses on it,” he said minutes after her presentation. “She was up to date on all the new requirements. It seemed like a good fit for us to bring her on and help out with looking at those sites. “It fit well to do her practicum based on the work she is doing on the native sites. “It’s a good program. We have been thinking about possibly getting another student maybe this year even. It seems like there is quite a bit of work out there.” Steve said that with the new wellsite reclamation criteria, it is easier to do a DSA with two people compared to just one person in the past. “Now with all the data requirements and recording all of the data in the field, it makes sense to have two people so you need more man-

power to do your DSAs. It makes sense to have a student helping with that work.” KB Prairie mainly works for clients on reclamation and remediation of single well facilities that have been abandoned. “Once they are done producing oil from the site, they will cut off the wellhead, and we will come in after that and usually do our initial assessment and take it from there, making sure the contamination is removed from the site, and replacing the soils and giving it back to the farmer hopefully in the same condition it was before,” explained Steve. Steve agreed with Gatzke’s conclusion to her project that it will be difficult to meet the criteria on some sites, noting that no two persons do an assessment or interpret data the same way. “The practitioner’s experience and competency makes a big difference in what they are going to see on a site and how they interpret what they see and how they are going to record it,” he said. “The new 2010 criteria requires a lot more information on these well sites than we were previously submitting with an application, so it’s going to mean more work to collect all the data but hopefully, (we’ll) get a better product at the end.”

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PIPELINE NEWS March 2012

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WORK HARD FOR A COMPANY THAT WORKS HARD FOR YOU

VAC AND HOT OILER OPERATORS REQUIRED IMMEDIATELY We are looking for Drivers/ Operators with PRODUCTION WORKERS • Experience is not required as we will train all workers, Male or Female. • You must be able to work in a fast paced environment. Lifting and shift work required. • We will provide competitive wage and bene¿t plans. Continual training will be provided. There is opportunity for advancement in this ¿eld.

valid Class 1 driver’s license to operate Vac and Hot Oiler units in the local Leduc area. These are physically demanding positions that will require you drive and operate the equipment. Previous experience is preferred. We pay for experience! Clean Harbors offers: complete beneÀts packages, competitive wages and safety conscious environments. To apply online, visit www.cleanharbors.com, or email: canadiancareers@cleanharbors.com. For more information about these positions, please call 780.980.2747.

If you would like to join one of South East Saskatchewan’s fastest growing companies, apply with resume in hand to:

Dean Lequyer - Plant manager or mail to: Box 1089 Carlyle, SK. S0C 0R0 Email to: ainfo@ceslp.ca ATTN: Dean Lequyer

WWW.CLEANHARBORS.COM

PIPELINE NEWS March 2012

Canyon is the fastest growing fracturing company in North America. We deliver quality customized pressure pumping and service solutions to the oil and gas industry, improving our industry one job at a time. If youâ&#x20AC;&#x2122;re looking for a career with a leading organization that promotes Integrity, Relationships, Innovation and Success, then weâ&#x20AC;&#x2122;re looking for you. Now hiring Canyon Champions for the following positions:

Operators: Fracturing, Nitrogen, Coil, Cement & Acid Class 1 or 3 Drivers Supervisors: Fracturing, Nitrogen, Coil, Cement & Acid Applicant Requirements:

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Self-motivated Willing to work flexible hours Current drivers abstract

Why Canyon?

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Dynamic and rapidly growing company Premium compensation package New equipment 3 weeks vacation to start

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Safety-focused Team oriented Clean Class 1 license or Cass 3 license an asset.

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

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

$ %&!) $! &% % & ) & / % !! !$ % &+ ! % !'% #' ( ' % &! & ! !) - "!% & ! % &! " $& " & & $!)& ! !'$ " 5 &+ ! %&$' & ! !" $ & ! % $! % $/ / $) % "& # "#+

'%& ( $ ( & *" $ "$! &% & - $ %% ! "!% & & $ %/ & ! &! ! & & &! % )!$ "$ & %- '%& "!%% %% $% " !$ , & ! % %/ '%& ( ( $ ( $0% % - ( 6 ( - $%& - $!' %&'$ & &%/ $$ "# - " $ #.

'%& ( &+ ! %&$' & ! *" $ ' $ "$ &% 1 %2 ' & $ ) ! " & ! ! ! ' & & ! / & ! &! ! & & &! ! & ! % &+- '%& ( ( 6 ( - $%& & &%- "$ $ + !'$ + & &/ !% $ " $ "#+ " $ &!$% ) & *" $ $' * ( &!$%- $ $% !, $% !! % $ / & ! &! ! & & &! ! & ! % &+- '%& ( ( $ ( $0% % - 6 ( - $%& - $!' %&'$ & &%/ %" "#+

'%& ( ( 6 ( $%& & &%- ! & & &! ! & ! % &+/ $ ( $0% % % %% &/ " ##%" "# - $"% $%" %" ) - " $ #+ !% & ! % !$ !& !" $ & ! ) $% $ ( / & ! &! ! & & &! ! & ! % &+- '%& ( ( 6 ( - $%& & &%/ $ %&!) $! &% % & ) & ! $% ! " & & ( ! " % & ! " &$ ( $! & ) ' % & $ &%- ""$ & % " !""!$&' & % ! "$ % ( ! " & + % &$ 3 4 %+%& /

$ " #$ $ # "' " #% # / & " $$ "# $ + %"$ # % " * " " (+ 4.538.695.7397 + % " 0 " #$ ' " $#,

Carson Energy Services is a wholly owned company of Flint Energy Services and provides energy services across Saskatchewan and Manitoba. Our employeesâ&#x20AC;&#x2122; safety is our foremost priority and our safety management system is world-class. Carsonâ&#x20AC;&#x2122;s benefits package and training and development programs are one of the key reasons why candidates choose Carson as their â&#x20AC;&#x2DC;employer of choiceâ&#x20AC;&#x2122;. At Carson, we provide employees with all of the tools they need to grow and excel both personally and professionally.

Building Leaders. Driving Success.

1Í˛866Í˛GOÍ˛FLINT www.Ĺ&#x2021;intenergy.jobs

We are currently seeking applicants to work in our East Region locations at Lloydminster, Saskatoon, Shaunavon, Swift Current, Regina, White City, Halbrite, Lampman, Estevan, Carlyle, Alida, Wainwright, and Virden.

Heavy Duty Mechanics (Journeymen and Apprentice) Heavy Duty Mechanics (Journeymen and Apprentice) Electricians (Journeymen and Apprentice) Electricians (Journeymen and Apprentice) and Apprentice) Welders (Journeymen Welders (Journeymen and Apprentice) Pipefitters (Journeymen and Apprentice) PipeĂ&#x20AC; tters (Journeymen and Apprentice) Safety Personnel Crew Foreman Crew Foreman Safety Advisors HIRING NOW Labourers Equipment Operators Labourers Picker Operators Equipment Operators Truck Drivers (Class 1 + Class 3) Picker Operators Directional Drilling Operators Truck DriversMechanics (Class 1(Journeymen + Class 3) and Apprentice) Instrumentation Directional Drilling Operators Instrumentation Mechanics (Journeymen and Apprentice)

APPLY NOW at www.flintenergy.jobs or call our Recruitment team at 1-866-GO-FLINT (1-866-463-5468)

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PIPELINE NEWS March 2012 Visit envirotec.ca for more career opportunities!

We’re Hiring! Vac Truck Driver Positions Available in Saskatoon, Saskatchewan Class 3A or 1A Required

Our best work happens when you’re involved Please join us for an open house to learn more about our business and future plans at our Weyburn facility. Where:

Date: Time:

Royal Canadian Legion Hall, 150 - 3 Street N.E. Weyburn Wednesday, March 21, 2012 7 to 9 p.m. (special address will begin at 7:30 p.m.)

Join us for refreshments and enter to win a door prize.

Why Apply? Envirotec offers very competitive wages, comprehensive benefits package, group RRSP plan, world-class training, and an opportunity for promotion to other positions within the company. Envirotec offers a safe, fun, and family-orientated work environment. Saskatoon is Canada’s fastest growing city. Take advantage of it’s booming economy, affordable housing, welcoming environment and family friendly atmosphere. Apply today! To apply please call Human Resources at 1-877-244-9500 Resumes may also be submitted via email to humanresources@envirotec.ca or by fax to 306-244-9501

If you’re unable to attend but would like information, please contact Twila Walkeden at 306.456.4114.

New ideas. New approaches. cenovus.com

Renegade Petroleum Ltd. is a light oil and gas exploration and production company with its assets located in Saskatchewan, Manitoba, and North Dakota. Renegade’s experienced management team has a proven track record of growing oil and natural gas companies on a cost effective basis. Management’s goal is to build the company through a combination of acquisitions and growth through the drill bit. With the focus on light oil production, Renegade is building a high net back company which will generate above average growth. Renegade Petroleum is currently accepting applications for a

Temporary, Full-Time OfÀce Administrator (Maternity Coverage) in Estevan, SK. Start date of May 1, 2012 This position will be responsible for, but not limited to: • Managing tasks and offering administrative support to the Calgary staff and Field Operations • Administrative support, including: written communications, reports, invoice coding, health & safety, etc. • Administration and maintenance of Field Production System (Avocet) • Receptionist duties and Àling • Handling incoming and outgoing mail and couriers • Assisting with ofÀce infrastructure, ofÀce machine maintenance • OfÀce errands, picking up packages, as well as dropping them off QualiÀcations: • Experience in the oil and gas industry is an asset • Experience with Avocet/Fieldview and Qbyte is an asset • Minimum of a Grade 12 High School diploma • Must be organized with strong attention to detail while managing multiple priorities • Ability to clearly communicate at all levels • Ability to work independently, self motivated • Must be strong team player If you are a qualiÀed candidate and interested in this opportunity please send a resume, in conÀdence, to:

Email: jlarter@renegadepetroleum.com Fax: (306) 637-2067 Mail: 1138-3rd Street; Estevan, SK; S4A 0R7 Thank you for your interest. Please note only those candidates selected for an interview will be contacted.

Career Opportunity Class 1 Canadian Driver Fiberspar Linepipe Canada is the leader in high-strength, ¿ber-reinforced tubular products for the oil and gas industry. We are seeking to ¿ll a fulltime Class 1 Driver in the Lloydminster area. Primary responsibilities will be to operate a tractor trailer. Candidate must have a class 1 driving permit, clear understanding of chains and straps, and able to perform other duties assigned by the supervisor. Salary is commensurate with work experience. Fiberspar offers a full bene¿ts package.

Interested individuals should fax resume to 306-825-4708 or email: employement@¿berspar.com

PIPELINE NEWS March 2012

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CAREER Gu×de is presently hiring

SUPERVISORS & OPERATORS

For its expanding

Production Testing Division •All applicants must have a valid class 5 driver’s licence. Blowboxes are invalid. •Must have up to date safety tickets H2S, WHMIS & CPR/First Aid •Able to work 12 hour shifts/days/nights •Able to work weekends and stats •Supervisors must have ample experience operating pressure vessels on sour wells, acid jobs, Nitrogen blowdowns, drillouts and on high pressure fracs.

CIRCOR Energy is a market-leading, global provider of integrated Áow control solutions in the expanding and evolving oil and gas industries, specializing in highly engineered valves and pipeline products and services. Comprised of best-in-class, historically signiÀcant product brands, we consistently satisfy our customers’ mission-critical application needs. Markets served today include: * Upstream oil & gas * Midstream oil & gas * Petrochemical processing In competitive markets, we are recognized for our: * Unmatched commitment to operational excellence and innovation * Manufacturing and applications knowledge and expertise * Focus on customer needs and our ability to align our business processes with theirs REGIONAL SALES MANAGER needed to serve SE Saskatchewan region: Role requires sound, in-depth understanding of concepts and principles in own technical area (valve sales) and multiple related subjects. Has sound understanding of theories and practices on a domestic basis. Able to resolve analytical issues in a variety of complex situations, without supervision. Can identify solutions to highly complex problems demanding/requiring use of conceptual and innovative thinking. Able to use conceptual thinking in complex/completely new situations based on an analysis of factual information. Impacts the business through shared responsibility for volume, quality, timeliness of end results, planning and Ànances/budget. Experienced Sales professionals with proven, veriÀable track record need only apply. Apply online at http://www.circor.com/careers and search for title of Regional Sales – SE Saskatchewan; or, email your comprehensive resume including salary history to joyce.johnson@circor.com; no phone calls, please, due to anticipated overwhelming response.

NOW HIRING Frontier Peterbilt Sales Ltd.

All applicants MUST pass a pre-employment substance abuse test.

Lloydminster

Estevan

Contact Dale at 861-3635 View All Careers at: www.frontierpeterbilt.com

WE ARE EXPANDING

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

Frontier Peterbilt Sales Ltd. is an enterprising truck dealership with operations in Saskatoon, Regina Lloydminster and Estevan. Our ongoing development and phenomenal growth in the Truck Sales industry are evidence of the company's commitment to offering customers a comprehensive range of products which perform at optimum efficiency and provide valuable benefits. We have built a high level of customer trust and satisfaction through our new and used truck inventory and parts availability and reliability, strong geographic presence, premium service, and unparalleled value. We have a strong mandate to continue to grow in the marketplace and to provide quality service for sales, repairs, and maintenance.

Lloydminster & Estevan xHeavy Duty/Truck & Transport Technicians Now hiring 2nd, 3rd or 4th year apprentice or Journeyperson Technicians to:

x Provide quality repairs/maintenance x Advise shop foreman of additional repairs/maintenance required

Frontier Peterbilt Sales Ltd. continually offer opportunities for our employees' career development, we have created an organization and a working environment aimed to attract, empower, reward, and retain the most dedicated, talented, and passionate individuals.

x Complete repair order annotations These positions offer a competitive and comprehensive compensation package.

Apply online today at: www.frontierpeterbilt.com While Frontier Peterbilt appreciates all applications received, we advise that only candidates under consideration will be contacted. Thank you for your interest for employment with Frontier Peterbilt Sales.

OVER 50 YEARS STRONG IN OILFIELD CONSTRUCTION

NOW HIRING

A R N E T T & B U R G E S S Oilfield Oilf O Oi lfie lf ie ld Construction ield C on onst st ruct stru ru ctio ct ion io n Limited Limi Li mi ted mite te d

NOW COME JOIN OUR TEAM!

We’re hiring for various Pipeline construction projects in the Regina area.

• Mechanic Send resumes to: spartantrucking@sasktel.net or fax to 306.453.4495 Possible Accommodations Available 27-tfn Spartan Trucking Inc. - Carlyle, SK 306.453.4494

Over 50 years strong, Arnett & Burgess Oilfield Construction Limited safely provides quality pipeline construction, facility installation, pipeline integrity, custom fabrication, maintenance and related contruction services to the energy industry.

Hiring

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

• PIPELINE LABOURERS • PIPELINE FOREMAN • SUPERINTENDENTS • HEAVY EQUIPMENT OPERATORS • WELDERS HELPERS • WELDERS WITH B PRESSURE • PIPE FITTERS

For more details and other career opportunities please visit: www.abpipeliners.com For Inquiries please call: 403.290.7800

Compensation: Highly Competitive wages Overtime Daily Subsistence

Preferred Certifications H2S Alive Standard First Aid & CPR

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

Please submit your resume to : info@abpipeliners.com

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PIPELINE NEWS March 2012

RESOURCE GuĂ&#x2014;de A Full Range Of Recruiting & Human Resources Services Lloyd Lavigne â&#x20AC;˘ Kirk Clarkson Owners/Managers 5315 - 37th Street Provost, AB T0B 3S0

6506 - 50th Avenue Lloydminster, AB

Phone: (780) 875-6880

Phone: (780) 753-6449

Fax: (780) 875-7076

306.421.4663

Specializing in Industrial & Oilfield Motors

LECLAIR TRANSPORT

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

Three Pistols Oilfield Services

info@synergyhr.ca www.synergyhr.ca

JUSTIN WAPPEL - Division Manager

General OilďŹ eld Hauling

Specializing in well site and pipeline surveys

HUMAN RESOURCES ES INC.

Dianne McPhail

24 Hour Service

a l t u s g e o m a t i c s . c o m

SYNERGY

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

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Keeping Saskatchewanâ&#x20AC;&#x2122;s OilÂżeld Local.

101093330 Saskatchewan Ltd. Steam Trucks, Well operating, MWD Consulting, & Fresh Water Hauling

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C (306) 577-7413 H (306) 577-4521 jasonshire@hotmail.com

JASON SHIRE Box 194 Kenosee Lake, SK S0C 2S0

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

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

Box 208

Estevan, SK

S4A 2A3

461-8471 â&#x20AC;˘ 461-8472 â&#x20AC;˘ 461-8473

Backhoe Towing Mowing Fencing Snow Removal Road Grader Gravel Supplies & Hauling

516 Nesbitt Drive, Estevan â&#x20AC;˘ 634-2631 (Behind Power Dodge)

P.O. Box 544 Stoughton, Sask. S0G 4T0

Call: Clinton Gibbons

Cordell Janssen RICK CORMIER

District Manager Downhole

Manager

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

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

BIG Dâ&#x20AC;&#x2122;S LEASE SERVICE

93 Panteluk Street, Kensington Avenue N Estevan, Saskatchewan PHONE: 306-634-8828 â&#x20AC;˘ FAX: 306-634-7747 cordell.janssen@nov.com â&#x20AC;˘ www.nov.com

(306) 457-7033 (306) 457-7673

NorseStar Ventures Inc. Light OilĂ&#x20AC;eld Hot Shot Steam Truck Services

(306) 621-7621 (306) 457-8283

PIPELINE NEWS March 2012

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PIPELINE NEWS March 2012