Pipeline News September 2008

Pipeline News Saskatchewan’s Petroleum Monthly

September 2008

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Volume 1 Issue 4

See you at Lloydminster Heavy Oil Show September 10 & 11 Pipeline News • June Warren Publishing

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INSIDE

Bakken Mad Rush Page A2

SE Land Sales Page C1

PTRC Q&A Page C19

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PIPELINE NEWS September 2008

Still no limits to the mad rush

By Norm Park of The Estevan Mercury Estevan - There are no limits so far and the fax machines are humming 24 hours a day at the Energy and Resources headquarters in Regina with oil companies expressing more and more interest in the Bakken play in southeast Saskatchewan.

“We’re setting all the records and there is no doubt as to what’s driving it,” said Ed Dancsok, director of the geology and petroleum lands branch for Saskatchewan’s Energy and Resources ministry.

“The Bakken limits haven’t been set yet. The perimeters continue to be stretched,” he added.

Saskatchewan’s Minister responsible for rising income, sometimes referred to as Energy Resources, is

Bill Boyd who told The Mercury last week that infrastructure needs of southeast Saskatchewan will have to be “ramped up. Wait for some fall announcements because according to the industry experts, these land sales are important indicators. Each well drilled represents a seven-fold increase in investment, so it’s about hundreds of millions ... billions of dollars,” he said.

Boyd said unprecedented development in the oil patch will probably require unprecedented attention from the provincial government in terms of highway construction or refurbishment, and other needs such as housing and community works.

“Oil companies are looking at Saskatchewan pretty favourably. We have a stable economy, a stable, reliable labour force and we, as government, would like to think

we’ve done a lot to promote a good business climate,” said Boyd.

What is continuing to fuel all the most recent round of excitement is the result of the recently completed sale of Crown petroleum and natural gas rights.

The August 12 sale raised an incredible $242.7 million in revenue for the province which was only slightly behind the previous record set at the April sale. The land sale total in Saskatchewan this year now stands at $848.1 million with two sales left. The previous record for an entire year was left in the dust this past spring.

Once again, the southeast sector of the province clearly led the way with sales of $212.3 million spent on the torrid Bakken play. The Kindersley Kerrobert area which includes Boyd’s own riding, was next at $14.3 million followed by Lloydminster region at $8.7 million and Swift Current with $7.4 million.

“Three geologists in our ministry have been checking on the Bakken,” said Dancsok “and they’re finding interesting Bakken formations north of the No. 1 highway and they haven’t found the edge yet. The Bakken is large and getting larger,” he said, commenting on what is now the world’s second largest conventional oil field that produces light, sweet crude oil, the most treasured type of oil since it requires the least amount of time and attention once it arrives at a refinery.

“So far we’ve looked at the Bakken in Saskatchewan as being from Torquay to Rocanville at least and field, which was the same one that was established in all that there is in between and now beyond. The drill By Stephan Burnett the 1950s. With that work we were able to essentially ers and producers are connecting all the dots and getPipeline News maintain flat oil production rates for the past 15 years.” ting fresh results,” added Dancsok.

ASP technology will allow previous non mobile oil Shaunavon - Talisman’s Shaunavon area foreman, The veteran geologist for Energy and Resources Jeff Seffern says his crew of 18 employees have been to be released from the rock formation which will grow said the Bakken formation had been known to them kept busy over the last year with the commissioning of production, says Seffern. since the 1950s and his department put their “first paThe field had an old existing oilfield battery with per out on Bakken in the 1970s,” but until just recently, a new ASP plant.

The care, maintenance and production optimiza- treaters, which take the water out of the oil. Some of the technology that was required to bring this tempttion is still ongoing, says Seffern, who started in the oil- this water goes to conventional water flood injection ing oil field into commercial production eluded them. patch right out of high school and has been with Talis- and then the rest is sent to the ASP facility connected “Now they’ve cracked the nut,” he said with a to the battery. The ASP facility works in three steps. laugh. “They know how to get it out now and our sales man for 20 years — the last four being in Shaunavon.

“The Instow operating unit facility area has 78 pro- De-oiling, softening and chemical blend injection. The are proving it and there are a lot of prospective Bakken ducing wells and 30 injectors and the ASP project is at de-oiling process takes the remaining oil out of the locations still to go and the companies are posting their the core of that field with 35 producers and 11 injection water from 150 parts per million (ppm) down to five requests for the December sale now because our Octoppm. wells in the project area,” he says. ber sale is completely booked up.”

“Once we put it through A producing well is How big will the October sale be? de-oiling we’re down to fi ve where the well bore draws Dancsok said there were 131,000 hectares offered On the whole, the project is ppm or less oil in the water. for licences in the southeast this time around and in fluid from the formation — Then we need to soften the October, there will be 236,000 hectares of Bakken topped off with a pump jack, expected to increase production and we put it through potential up for grabs. Another 36,000 hectares were progressive cavity pump drive by nine percent, which over the water an enormous water softener available in the Estevan-Weyburn area for lease parcels or an electrical submersible which takes out the calcium too and so that land mass will probably be well up in life of the project is in the pump. An injector well inand the hard minerals that October too. jects the water or ASP blend four-million-barrel range we don’t want,” Seffern exback into the formation to And if that wasn’t already enough, Energy and ReJeff Seff ern plains. maintain reservoir pressure sources are suggesting that some producers are inter“Once it’s softened – ested in applying Bakken formation drilling technoland aid in mobilizing oil to there’s about 3,100 cubes per day — then we start mix- ogy in and around Kindersley where similar formations the producer.

Talisman is expected to invest close to $40 million ing the chemical products into that water,” he explains. have been tempting them for decades. A Shaunavon Talisman invests between $850,000-$900,000 in medium grade crude oil discovery is also staring them over the life span of the project including chemicals — chemicals per month on the process. The clean oil is in the face. It’s just a little deeper than what they trait took $23 million to construct, says Seffern.

“On the whole, the project is expected to increase sent off for sale and some of the gas is sold as well and ditionally go after, but with oil prices remaining at well production by nine percent, which over the life of the then the water, which is softened and treated with the over $100 a barrel, there’s still money to be made in the chemicals, is targeted toward the 35 producing wells. project is in the four-million-barrel range,” he says. business ... lots of it.

While drilling activity is off with Talisman-related The life of the project is 15 to 20 years and Talis“The horizontal drilling and new fracturing methman expects it is going to inject ASP for three years projects, Seffern adds his crew is keeping busy. ods, mean that maybe they can do it there too,” said “We didn’t drill any wells this year but that’s a fac- Dancsok. and then polymer only for three years tapering concentration over time. Then move on to Phase 2 and 3 in a tor of getting the plant up and running. We’re the first The Saskatchewan land man said the province’s ones in Saskatchewan to have this type of plant and we five-year average of offering about 85,000 hectares in different area of the same field. are learning, learning and learning,” he says.

ASP stands for alkali, surfactant and polymer. each sale, is long gone, along with the record for pric“We are very busy in keeping this thing running. es.

The surfactant is self-defining in the sense that it is a surface-active agent.The surfactant and the alkali work We drilled 15 wells last year and eight the year before “To add to the picture, we’re now seeing compatogether as soap and the polymer’s job is to ensure no and another six the year before that.” nies expressing interest in the gas over the coal fields Along with keeping the plant running, Seffern further north. You know what that means? Coal bed channels are created in the re-injection process which will maintain reservoir pressure forcing the chemicals states his team is also in the midst of a scoping phase methane. There could be a new land rush. These are to sweep the area’s of the rock formation previously un- for another ASP project. very interesting times for geologists and engineers. This “It will be in the Shaunvon area as well, it’s not yet kind of resource technology is what is driving things,” swept. The process as whole allows for increased flow of approved but we’re doing the legwork,” he says. oil back to the well bore. said Dancsok.

If the new ASP project gets the economic nod With takeovers and acquisitions, Talisman’s lineage So how long will it last? within the region essentially dates back to the 1950s from head office in Calgary and the environmental go“There will be lots of activity, plenty of activity in through predecessor companies, but it came to town ahead, Seffern says there might be some opportunity Estevan for years to come. Right now they’re comofficially in 1992 as Talisman took over the field from for Shaunavon locals. plaining that they can’t get enough iron in the ground “There’s no one with experience in running these to bring it up. When it costs about $2 million to drill Encor.

“With past exploration and production in our area facilities. There could be opportunity for local people and almost that much to complete a well, you’re talking we concentrated on in-field drilling and enhancing the but it’s not approved yet.” about extending the activity for a long, long time.”

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PIPELINE NEWS September 2008

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Reducing what goes up in smoke – through economy and emissions controls

By Brian Zinchuk Pipeline News Lloydminster – Ask a truck dealer about the trends in oilfield trucking, and two things keep coming up: fuel economy and emissions controls. On top of that, the fluctuating Canadian dollar and the price of steel are impacting buying.

Glyn Dobson, Mack Truck territorial manager for Redhead Equipment says the price of fuel is having a large impact on buying. “Larger horsepowers are an inaffordable luxury,” he says.

Dan Roberge, Redhead’s northern manager, concurs. “The bells and whistles are almost gone. People are looking for workhorses.”

Where as over-spec’ing a truck to have plenty of reserve power may have been common in the past, he projects that will not be the case in the future. The excess fuel cost won’t allow it. “Over spec’ing is as dangerous as underspec’ing, he says.

“If you’re trying to make a living, you’ve got to A bigger engine can sometimes mean better fuel economy, notes Bryan Robinson, branch manager for Kenworth Lloydminster.

Emissions Stricter emissions controls have been coming in every few years, with new standards for 2004, 2007 and now 2010. Several of the dealers note there were substantial pre-orders before each set of new standards. They anticipate the same will happen for 2010.

“Guys are scared of change, bugs,” notes Flanagan, explaining why the pre-orders happen.

“Nobody wants to be a guinea pig,” concurs Darren Smith manager for sales and marketing for First Truck Centre in Lloydminster. He anticipates a “fairly healthy pre-buy to 2010.”

Some of the biggest fallout from the new standards is the withdrawal of Caterpillar from highway engines in 2010. This will have a big impact on several lines, with two dealers telling Pipeline News up to 95 per cent of their sales a few years ago had Cat engines.

“Cat is on their way out. That’s influencing sales,” notes Kenworth Lloydminster branch manager Bryan Robinson.

Cummins is one alternative buyers have been turning to. Several manufacturers are pursuing their own engines, often in alliance with another company.

Mack and Volvo are working together. Navistar has been working on another. Western Star and Freightliner, for instance, will carry a Detroit Diesel and Mercedes Benz product. The new engine has a simplified turbocharger and better fuel economy over the product it is replacing, and yet meets the 2010 standards, according to Smith.

International and Caterpillar will have a Catbadged truck, note Wells. A letter of intent was announced in June, he points out.

“We’ve been selling mostly Cummins for the last few years,” Wells notes. That’s a trend pointed out by several dealers.

The new emissions control systems, Select Catalyst Reduction (SCR) also impact the design of trucks. Smith says additional after treatment devices on higher horsepower units will eat up precious real estate on the bottom of the truck. That’s going to cause issues with PTO systems.

Smith says the time to buy is now. But his reasons are a little different.

Dollar and steel In August, the Canadian dollar took a tumble, while steel prices are on the rise, according to Smith.

That means that stock on the lot was priced with cheaper steel and a more robust dollar. If the dollar continues to fall, and steel continues to rise, new

Yellow Caterpillar engines in on-highway trucks are on their way out, with Caterpillar pulling out of the on-highway engine market in 2010. This unit was undergoing work at Frontier Peterbilt, Lloydminster.

product will likely cost more. Smith says there is a lot of inventory out there right now, so it would be best to take advantage of it.

The strong Canadian dollar has made it easier on prices overall, however. Smith says we’re seeing five to eight year old pricing, “but on a much improved [product] right now.”

“We’re lucky we’re in a decent economy to deal with these rising costs,” says Robinson.

The boom in the oilpatch has been good to dealers, with several in Lloydminster sporting newer buildings or expansions. “We’ve expanded service bays from 12 to 20,” notes Sprentz at Frontier Peterbilt. “We’re just feeling the boom of Lloydminster and area.

“We’ve got customers that are really busy right now, but what’s holding them back is drivers,” says Robinson, not the truck or the price of fuel.

watch the bottom line.”

“The owner/operators are always concerned with controlling their expenses,” says Rick Sprentz of Fuel economy is a major factor in purchasing, according to Mack Truck Territory Manager Glyn DobFrontier Peterbilt in Lloydminster.

Jason Flanagan, a sales rep with Frontier, notes, son at Lloydminster’s Redhead Equipment.

“Everybody’s still using big horsepower.”

Newer engines are offering better fuel economy, Dobson notes, with some customers seeing considerable difference compared to their competitors.

While money may be flowing for oil companies, there are many subcontractors in the field, and those owner operators are ever-conscious of costs, according to Dobson.

Whereas fuel economy was a consideration before, Dobson says now, “It’s right up there. Every smart operator is looking at the whole package.”

“Before, it wasn’t a priority.”

Not everyone agrees on fuel economy having more impact now than in previous years.

“Everybody’s talking about fuel economy, but they need the horsepower. There’s not much choice,” says Keith Wells, general manager with Diamond International Trucks in Lloydminster.

“They need a truck to do what it needs to do. It takes so much energy to move so much weight at so much speed.”

Similar sentiments are heard from Kenworth Lloydminster branch manager Bryan Robinson. “If a person needs a truck, they need a truck.”

“When fuel is cheaper, there can be a tendency to overspec,” Robinson notes. However, that can sometimes mean better fuel economy in the long run, because a bigger engine doesn’t have to work as hard.

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EDITORIAL

PIPELINE NEWS September 2008

Pipeline News Publisher: Brant Kersey - Estevan Ph: 1.306.634.1015 Fax: 1.306.634.0141

Mission Statement: 3LSHOLQH 1HZV¶ PLVVLRQ LV WR LOOXPLQDWH LPSRUWDQFH RI 6DVNDWFKHZDQ RLO DV DQ LQWHJUDO SDUW RI WKH SURYLQFH¶V VHQVH RI FRPPXQLW\ DQG WR VKRZ WKH JHQHUDO SXEOLF WKH VWUHQJWK DQG FKDUDFWHU RI WKH LQGXVWU\¶V SHRSOH

Editorial Contributions: SOUTHEAST Geoff Lee - Estevan 1.306.634.1015 SOUTHWEST Stephan Burnett - Swift Current 1.306.778.6952 NORTHWEST Brian Zinchuk - North Battleford 1.306.445.7261 MANITOBA Brent Fitzpatrick - Virden 1.204.748.3931

Associate Advertising Consultants: SOUTHEAST • Estevan 1.306.634.2654 Jan Boyle - Sales Manager Cindy Beaulieu Glenys Dorwart Kristen O’Handley Deanna Tarnes SOUTHWEST • Swift Current 1.306.773.8260 Doug Evjen Andrea Bonogofski NORTHWEST • Lloydminster Daniela Tobler 1.306.825.2038 MANITOBA • Virden - Gail Longmuir 1.204.748-3931 • Estevan - Jan Boyle 1.306.634.2654

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Editorial

Spreading the message more important than ever Public Relations.

An old concept which never goes out of style. We’ve used the term often enough but making it work effectively is sometimes difficult. At a time when everything is so competitive, the industry under a microscope because of high fuel prices, we must gear up and address the challenge of improving our image. To ignore the public is akin to playing Russian Roulette. Politicians usually listen to the public.

Energy policy coming out of knee jerk reactions by our elected officials have proven to be dangerous to the industry. It’s best to work on our public relations where we have control.

In spite of focus on alternative energy sources, oil remains at head of the class. Of course, being Number One draws a lot of attention. The stereotypical public view of the industry is that anyone connected to oil has money -- a lot of it. Paying for a tank of gas just fortifies such thoughts. Never mind the fact cheap oil has been the backbone of national economic policy for industrialized countries since the early Nineteen Hundreds. Forget oil is a commodity and fluctuates wildly. No one helped the oil industry in the big downturns in the last one hundred years. We didn’t hear complaints when a barrel of oil hit $8.00 U.S. in the Eighties.

We need to advance the notion the industry isn’t responsible when crude hit $147.00 a barrel U.S. in 2008 anymore than when it was at $8.00 in the mid-eighties. Oil is a complicated, international commodity, influenced by hundreds of factors. The industry is not responsible for a lack of national en-

ergy policy in most countries.

Even today, as all consuming countries (with the possible exception of Brazil) scramble to come up with realistic energy policies, politicians are still playing the old game of “who to blame” instead of taking on the tough questions of providing viable solutions.

The truth is industrialized countries have failed for over forty years to get it right.

So we still have to do our part. Just because this industry has fallen on better times in Saskatchewan is no reason to sit back and count our oil wells. Look no further than Alberta, to make a point. That’s not to say the Saskatchewan government is putting us on a “hit list”. Brad Wall’s government is doing a great job in the early going. But all politicians are no better than the next vote. And if re-election means finding a bad guy that’s making a lot of money… well, you get the drift.

The message must be carried out to governments and the public alike that a healthy, viable oil industry is good for everyone. Ottawa and Regina understand this now but a good portion of the public doesn’t; they have to be educated. And that’s the challenge of public relations. Because things are good here in Saskatchewan is the very reason not to become complacent. Now is the time to plan and consolidate and deliver a message to anyone who’ll listen. Get the public on our side. Make it difficult, if not impossible, for someone to wipe out our prosperity with a stroke of a pen.

It’s up to us to organize, promote and get the message out.

PIPELINE NEWS INVITES OPPOSING VIEW POINTS. EDITORIALS AND LETTERS TO THE EDITOR WELCOMED.

PIPELINE NEWS September 2008

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Opinion

Keeping it in the family ?khf ma^ mhi h_ ma^ ibe^ Brian Zinchuk

I discovered an interesting thing in recent weeks, pursuing stories for Pipeline News. Everywhere, it seemed, I was writing about family businesses. You would think it was the five families of New York, when you look at the number of family businesses I was running into. In fact, the number turned out to be much higher than just five.

There is Edam’s Racken, a flushby operator run by Rachel and Ken McConnell. Also in Edam, Arnold Poole and Peggy Dunlop opened up Edam Wash Bay, an offshoot of Arnold’s Sand and Gravel.

In Lloydminster, I found Katy Messmer, a machinist with Triland Engine and Machine. Katie's entire family works at Triland. Her dad Tim runs the shop, mom Susan does books, brother Danny sweeps floors and brother Adam is a machinist, with a knack for welding. Adam and Katy will soon be taking over the shop.

My very next interview had me at Prodahl. It sounded like I was having the same interview all over again. In this case, Brian Prodahl ran the business with his friend Steve Williams. Prodahl’s wife is involved, as are his son and son-in-law.

They run crews. In the next few years, he’d like to hand off the business to the kids.

I asked Brian Prodahl about running a family business. He said it was the company’s greatest advantage. Each member of the family not only worked in the business, but was also a part owner.

That meant they had a vested interest in making sure the business succeeded. Additionally, it addresses one of the biggest headaches in the oil patch: where do you find workers? If your staff are family, and owners, they are not likely to be leaving anytime soon.

I got a similar sentiment at Garrison Oil Well well servicing. At Garrison, Darryl is the patriarch, while matriarch Bev works in the office.

Daughter Natalie does books, while Chantelle is head office administrator. Chantelle’s husband Shawn Villeneuve runs rig No. 2, while Sheldon Garrison runs rig No. 3. Bev says, if you can't trust your business to your children, who can you trust?

Another phone call, this time to Lashburn/ Lloydminster hydrovac firm Hyrdro-Dig, discovered yet another family business. A dad, son and son-in-law again run the show.

Truckzone is yet another, run by two brothers, but started by the dad who has since bowed out.

Grit Industries is a good sized player, started

by Wayne King. This, too, is a family operation, with his son involved in management.

In my younger days I worked for a major contractor that had a lot of family ties in it. Towards the end of a job, the operator I was working with and I ended up on the crew that time forgot. Of about 20 guys on our crew, only four of us, as far as we could determine, were not related to someone

in management. Most performed okay, although a few left some to be desired. One guy was such a screw-up, another operator spent half of his time correcting the mistakes. Another would show up for work three days out of six, and still collect a paycheque. He was related to someone very highly-placed, and that made him essentially untouchable. The foreman lamented to me one day that the big boss would not allow him to fire this highly-linked screwup, despite his pleas.

In this situation, it was really irksome. For someone who is not related to someone in management, if you didn’t show up for work, you’re done. Miss the buss, you’re run off. They would have someone else sent out the next day.

Yet in speaking to these small operations in the Lloydminster area, I get the impression that such family ties are not a bad thing. Indeed, without having the younger generation working in the business, those ventures might not be in business, or at the very least, would be completely different entities.

It's not easy to work with family. I'm sure that many of the difficulties of work follow these people home. It's not easy to leave work at the office, ignoring it at the supper table, or Christmas dinner. Yet, they obviously are able to overcome the difficulties, the grudges from the sandbox to how profits are split (or bills paid), and work together.

In the future, I think the natural assumption is a small business in the oilpatch is a family business. That’s not such a bad thing.

Brian Zinchuk is a reporter with Pipeline News.

He can be reached at brian.zinchuk@sasktel.net.

More business equals better business In one of the interviews I did this month an oilman who had worked in Australia and Indonesia told me that things in Saskatchewan have gotten better in the oilfield now that there are more companies operating on the scene.

In the 1990s there were many mergers and acquisitions, which led to a reduction in the number of players involved. Now, that trend has reversed and there seems to be many more medium-sized businesses on the scene. It all bodes well for the oilfield service industry, which is still primarily owned by local players.

Truckers galore!

I never realized how many trucking outfits there are in Saskatchewan until we started this focus on trucking. The oilfield trucking industry also seems to be fairing well with the times and they’re specializing. There are those that haul dirty water, those that haul clean water, those that haul rigs, those that haul clean oil and still others that haul dirty oil. The trucking industry looks so strong and in the oilfield surrounding southwestern Saskatchewan much of it is locally owned.

The tie that binds The first and second paragraph of this column may seem separate but there is a tie that binds them together. We are seeing a resurgence of locally-owned companies in Saskatchewan and that is quite evident in the trucking industry. There are those who0 look at the oil industry and ring their hands over the fact that most of it is foreign-

;nlbg^ll pbma ;nkg^mm Stephan Burnett

owned but in the service industry, whether we’re talking about trucking or any other type of service for the oilfield, much of it is local. This is good for local economies and good for Saskatchewan.

The political spin Having been a public affairs reporter for as long as I’ve been an oil and gas reporter, I’m always looking at the political spin. Many in the industry are giving credit to Premier Brad Wall for changing the perspective on the way business is being treated in Saskatchewan. I would have to agree, Wall has been successful in changing that perception and that has decreased the reluctance of many of the Calgary-based businesses in doing business in Saskatchewan. I’m not exactly certain how Wall was able to accomplish this. Others, such as Grant Devine tried to open the doors for business in the province but they didn’t seem to be as successful as Wall has been. Perhaps it is all

about timing. In politics they say timing is everything and Wall did come to power as gas and oil prices were on their way to record levels. As well, in Alberta the royalty debate seemed to have helped push business Saskatchewan’s way. All these factors combined have made Premier Wall the right guy at the right time and kudos go out for the excellent job he is doing in marketing the province.

The other side of the story Remember when you were a kid and if you didn’t get something from dear old dad, you’d bend a corner and ask mom? Well, it didn’t work out that often but when it did, once mom and dad caught up to this trick there was usually a reckoning.

In the same light, if oil and gas companies are playing the provincial governments of Western Canada against each other, there should be a reckoning. I believe the provinces of Western Canada should get together with the Northwest Territories, the Yukon and perhaps even Newfoundland and arrive at a national royalty rate for big oil and gas companies. Maybe the Prime Minister could get involved and try to bring parity to royalty rates throughout Canada, the U.S. and Mexico through NAF TA. A unified royalty rate throughout North America would be very good for business and would ensure that big oil companies weren’t playing provincial governments off each other.

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PIPELINE NEWS September 2008

Fish or cut bait, grow or sell?

Lloydminster – It was a classic case of fish or cut How big is big enough?

Does he find it hard to find people? bait. Cordean owners Larry and Judy Fialkowski had “To be honest, I don’t know,” he relies. “You need “Actually – no,” he replies. In this instance, he ran received several offers to buy their 28-year-old busi- to set your sights on something. Set them high. Oth- an ad in the Western Producer, as camp jobs aren’t ness – Cordean Contracting and Oilfield Consulting. erwise, you’ll end up hitting a little low.” that well known.

Did they want to stay in it, or step out?

This is a sea change for a company that, until reBesides, “People around here prefer to stay at This is where their kids stepped in. Three sons cently, has laid low. “We didn’t even list our phone home,” he says, noting there is so much work for work with the business, while their daughter Daylin is number,” Larry says. “We tried to stay as low as pos- them, there is no need to range far and wide to make in high school. Son Brett Pollar is the safety manager, sible.” a buck. while Dustin Fialkowski is the cleanup guy, occasionWhy? “I have found, to pay big dollars, all it attracts is ally driving truck or shuttling equipment. Devon FiFrankly, he hates the politics of the oilpatch. “If I people interested in money only. alkowski helps around the shop, acts as “I have made a point of surrounding myself parts runner and shuttles trucks. with only hardworking, loyal, honest people who “We were approached three times. take pride in their workmanship, and everyone People wanted to buy us,” explains Larelse gets weeded out,” he says frankly. ry. We were at the point where either we It wasn’t always a growth curve. “We were sell, and we go pump gas for something forced to downsize in the mid-80s, when the to do . . . but the kids displayed interest. price of oil bottomed out. We almost lost our “So it’s all for them, and we decided shirts, but we managed to survive. to grow.”

“You gotta be tough in this business. You That decision was made in mid-2007, need though, thick skin.” and it led to a strong growth trend in About half of their work is infield – short 2008. They were running 25 to 30 units runs. The other half is long haul, with round trips by the end of last year, but then bought that can take as many as 16 to 23 hours. These out R & L Trucking out of Bonnyville, runs might haul “off-spec” oil from Drayton Valwith eight trucks and seven trailers.

Ulqud Atta takes on a load of heavy oil, southwest of Lloydminster. ley to Brooks, Alta. for instance. “One truck will Since then there has been a con- Atta drives for Cordean, a Lloydminster based crude hauler. haul one load in two days, the next truck will hall tinual string of new equipment, about a ten loads in one day,” he says. piece a week, Larry says. A new truck sits in the shop, enjoyed politics, I would be a politician,” he says.

Based at Lloydminster, Cordean operates strictly awaiting decals. They’ve more than doubled in size in “Now we’re at the point where we’ve decided to on the Alberta side of the border. It takes care of some under a year, with 85 units. Currently, with employees, grow and have some people notice we’re here.” hours of operations headaches. If they worked on both subcontractors and their drivers, there are over 100 on The phone rings. It’s a driver interested in their sides of the border, stricter federal rules would come the payroll.

Fort McMurray camp job, where two units are oper- into play.

They’re even looking to buy out other operations. ating. Larry talks up the perks – pay structure, “New “The province of Alberta understands what the “We have another company presently in our sights,” camp, good food,” he says. “Which is all true. No bull. oil patch is about,” he says. “The federal government Larry says.

Honesty is the best policy.” does not,” he stresses.

PIPELINE NEWS September 2008

A7

Imports help in selling domestics Lloydminster - While emissions and fuel economy are concerns for every trucker in the oilpatch, you’re not going to spin a wheel if you don’t have drivers.

That’s a continual issue, according to Jason Flanagan, sales representative with Frontier Peterbilt in Lloydminster. “That’s a huge concern for most companies.

They can’t find the employees to drive the trucks.”

But truck drivers aren’t the only concern. There’s also a shortage in people to service and sell them.

That’s why Pipeline News noted some distinct accents while pursuing this story.

“We’re importing them from Britain,” notes Flanagan. There are around a dozen immigrants working for Frontier amongst its various Saskatchewan locations, he notes. Several are Philipino.

At Redhead Equipment, there’s plenty of English accents, too. Glyn Dobson, territorial manager for Mack Trucks, is one of them. There are four British

and one American immigrants at Redhead, he notes.

“I think Canada is fantastic. It’s safer, cleaner for my family, with a lot more opportunity.”

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PIPELINE NEWS September 2008

Building service rigs, but servicing still bread and butter Lloydminster – The derrick is white, ing builds the drawworks and derred and gleaming. More importantly, it rick. was built in Lloydminster.

That derrick could be telescopKobes Welding, located in the Couning – they’ve built two of those – or ty Energy Park just west of Lloydminster, “stiff,” which accounts for the rehas grown from a welding truck backed mainder. into another shop, into a service rig spe“We’re trying to make a more cialist – not just maintaining them, but user-friendly rig with less mainteactually building them. nance.” Kobe says.

“When my kids were born, an insurBut doesn’t that shoot oneself ance guy asked what my ambition in life in the foot, as a service shop? was. I wanted to own a welding shop,” says He replies, “Maybe we’ll sell Kevin Kobes, owner. more new equipment.”

Keith Leyen used to operate several While rig construction is an imdozen service rigs at a time, and Kobes got portant part of the business, service his start working for Leyen. “I ran a weldwork is the bread and butter. They’ve ing truck up to his door just about every also put together three pump trucks, day, doing repair and maintenance on his and a few skid mud tanks. rigs.”

“We’ve been flat out for the last From that his operation grew into Kevin Kobes, seen here beside a new service rig derrick, started with one weld- three years,” he says. a bay near the Co-op creamery in 1996. ing truck. Now he builds service rigs.

An overhead 40-tonne crane is Photo by Brian Zinchuk Eventually, Kobes moved into Leyen’s being assembled in the yard, with “We’ve pretty much had a rig on the go on a steady shop. After that, it was the County Energy hopes of having it running in Septembasis,” he says.

Park 3 1/2 years ago. ber. It will accommodate pulling engines or drawworks “To build one of these from the frame up is approx- out of the carrier, as opposed to hiring a picker. “It’ll Now there are about 20 people on staff, including mechanics, machinists, welders, fabricators and office imately four months,” he says as we walk through the make life easier,” Kobes says. north end of the shop, where new units are assembled. staff.

Is it easier to work with the bigger firms, or the “Working for Keith for 15 years, I learned the ins On one side, a welder works on the truss of a derrick, mom-and-pop operations? and outs of repairing rigs,” Kobes says. Much of it was while on the other, another welder works on the draw“Typically, if I could just work for the smaller guys, works of a unit that has been largely assembled. repair work, including rebuilds down to the frame.

I would work with the smaller guys,” Kobes replies. That “We don’t build the carrier,” Kobes explains. The way it’s one-on-one, working with the boss, not someThat’s valuable knowledge when it comes to buildcab and chassis is actually a crane carrier. Kobes Weld- body in Calgary. ing one. So far, they’ve built seven.

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PIPELINE NEWS September 2008

A9

Lloydminster Oil Show speaker has four start-ups under belt abilty to sustain life.

This year he will talk about what can be done about it, and who should do it.

Carlson says there is a high concentration of people in Western Canada, and Lloydminster in particular, with knowledge on energy. He says we shouldn’t resist change. “We should turn it into a business,� and tackle the broader problem of the need for energy.

He points to the vast majority of global primary energy demand that is met with fossil fuels. “Any replacement will take expertise. That expertise is in Western Canada.�

As an example, he points to North American Oilsands. When he left it, they were planning on processes that would allow for easier carbon dioxide sequestration, as well as gasification of products like wood waste, straw and newspapers. The

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hydrogen byproduct could be used to make heavy oil into a lighter synthetic oil, creating a fuel that is partly hydrocarbon, partly carbohydrate.

Energy companies will remain, but they’ll provide different forms of energy, he forecasts. “The same names around for 100 years will be around for another 100 years,� he says. They’ll just be providing different forms of energy. *** The Lloydminster Heavy Oil Show is free to attend and open to the public. All available booths are booked, with 207 companies participating.

Both Saskatchewan Premier Brad Wall and Alberta Premier Ed Stelmach are planning to attend. “We expect somewhere between 5,000 to 6,000 people,� Scott Black, show chair, says. Over half are likely to be directly tied to the oilpatch.

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Lloydminster - He’s started up four oil companies, but don’t let that fool you. The keynote speaker of the Lloydminster Heavy Oil Show will be talking about a future with different fuels, but using the expertise of Western Canada to develop them.

The Lloydminster Heavy Oil Show takes place at the Lloydminster Exhibition Grounds Sept.

10-11.The keynote speaker is Pat Carlson.

Carlson is CEO of Seven Generations Energy Ltd. “It’s my fourth startup company,� he says.

Carlson’s career started as a 1975 graduate of chemical engineering at the University of Calgary, and took the usual path. First he worked for BP (which would eventually become part of Talisman.) Then it was 16 years with Husky, from 1980 to 1996. He spent 1981-1990 in Lloydminster with Husky.

After that, Carlson fired up and sold off a number of oil companies.

There was Stampeder Exploration, bought out in 1997 by Gulf Canada. He spent some time with business partner Terry MacDougall in Albania. In 1998 he started Passage Energy, a heavy oil company that was sold to Bonavista in 2001.

That year saw not one, but two startups for Carlson. Krang Energy had half its efforts in heavy oil, the other half in gas. Viking Energy Trust bought it out in 2005.

The other startup was North American Oilsands, which was eventually purchased by Statoil of Norway. This operation is set up between Lac La Biche and Fort McMurray. “That’s what I do. I start oil companies,� says Carlson.

But what does it take? “You need people, you need money, ideas, opportunity and land.�

In some ways, Carlson says it’s like working for a big company. He finds running a small firm more comfortable, but also more risky. You have a potential to make a bigger contribution in the company and, he notes, “Sometimes you work off a card table.�

Last year Carlson spoke to the Petroleum Society Lloydminster Heavy Oil Section’s annual conference. At that time, he says he addressed two critical challenges: depletion of light oil, and global warming linked to the use of carbon dioxide. “We ought to be doing something, whether or not in our heart of hearts we believe there is a problem.�

Carlson says there is a reasonable probability of global warming doing damage to the planet’s

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PIPELINE NEWS September 2008

Small hydrovac operator starting big job

Mike Gray, left, and Brock Bargain of Hydrodig locate lines near Grit Industries in Lloydminster.

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Lashburn – MidAugust saw Lashburn hydrovac operator Hydrodig firing up for one of their first major projects – Enbridge’s mainline pipeline work in southern Manitoba.

Two Lashburn units will be joining two Regina units to handle the line locates on the Enbridge Alberta Clipper project. It’s a big project, with 3,000 holes to daylight. They will be sub-contracting under Michels Canada.

It’s a big step for a company that started five years ago with one truck, and has since grown to a fleet of six.

Les Gagnon and his son Kevin were both hauling oil in the Lloydminster area when they found themselves squeezed out by a bigger carrier. They had their own trucks and trailers, but the larger carrier was only interested in bringing on trucks, according to Les. It’s too easy to get into that line of work, says Les. “Anybody can go out and buy a truck and say they’ll work cheaper. You’ll go broke, waiting for them to go broke.”

For two years, they continued to haul oil, looking for a better option. That came along in early 2003, when they bought their first hydro-

Hydrovac operator Mike Gray, right, loads up the unit after a line locate in Lloydminster.

Brock Bargain, left, stores the boom. Both work for Hydrodig, which operates out of Lashburn.

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This led to hiring a driver for the oil truck, and then eventually selling it and picking up a second hydrovac unit, and then a third. Expansion was a necessity.

“We knew we were going to like it,” says Les. “The phone was ringing and we were already saying ‘no.’ You can’t do that very long.”

Roy McFayden, Les’ son-in-law, soon joined the business.

Hydrodig is a franchise operation, with the Lashburn operation running the Lloydminster and now the Saskatoon areas. That’s why their trucks say “Lloydminster,” even though their shop is located on the west side of Lashburn.

Compared to other hydrovacs, with tridem drive axles or tandem steer, the hydrodig units are tiny. According to the Les, being small and nimble is an advantage, noting a big demand for small four-wheel-drive units.

“We can compete with the big ones,” he says.

Kevin points out the easy movement and fast dumping if they have a nearby dump site.

They complement each unit with onetonne water trucks.

These are owned by the operators, giving them an incentive to stay on with the added income.

As for the Manitoba project, Les says, “It’s going to be a learning curve.”

“But exciting,” adds Kevin.

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PIPELINE NEWS September 2008

A11

Interest in oilsands, but no sales Lloydminster – A mammoth swath of oilsands exploration permits were up for grabs, for an area more than half the size of Prince Edward Island, but no one coughed up enough coin to win the rights to explore on it during the August Crown land sale.

Four oilsands parcels were posted for the Lloydminster region, totalling 327,653 hectares.

The parcels were along the Alberta/Saskatchewan border, north of the air weapons range.

There were no takers, however. There were bids on each parcel, but they did not meet the

minimal acceptable (i.e. reserve) bid, according to Ed Dancsok of the Ministry of Energy and Resources.

That doesn’t mean the end of oilsands sales this year, however. The October sale has got eight parcels up for grabs, but these are exploration licences. They are much smaller, no larger than a township, and total 63,000 hectares for the eight parcels. They are all near the Oilsands Quest operation north of the Clearwater River.

Exploration licences are typically closer to existing production. If you ďŹ nd something, you can produce right away. For

every well you drill, you earn a section of land for lease.

An exploration permit allows you to explore, but not produce.

It provides ďŹ ve years and the right to convert up to 50 per cent of those lands into leases.

Lloydminster area Crown land sales have continued this year’s trend, falling in the neighbourhood of single digit millions of dollars. The August sale saw $8.7 million in sales, an average of $318 per hectare ($128 per acre).

This is a four-fold rise over the last land sale, which pegged $2 million at an average of $408

Practical applications of cutting edge technology Lloydminster – A good mix of topics with practical applications will ďŹ ll two mornings during the Lloydminster Heavy Oil Symposium, according to symposium vice-chair Bob Mottram.

The Petroleum Society - Lloydminster Section’s 15th Annual 2008 Heavy Oil Technical Symposium will take place September 10 and 11 at the Lloydminster Stockade Convention Centre. The symposium is meant to coincide with the Lloydminster Heavy Oil Show.

Mottram says there is a focus on practical applications, as opposed to deep, dark theory, with cutting edge technology up for discussion. “This is going to be a very interesting symposium,� he says.

A change in the itinerary will see Karl Millar, senior reservoir engineer with Husky Energy, replacing Dustin Newman’s Sept.

10 presentation. Newman is also of Husky.

Miller will speak on “Successful Cold Production of Peace River area heavy oil.� “I consider Karl to be one of the grand old men of heavy oil,� says Bob Mottram, chair of the Petroleum Society Lloydminster section.

This year’s theme is “educating the world about heavy oil.�

Each day’s sessions run during the morning only.

Sept. 10 sessions will begin with Erik Hulm of BP Alaska, speaking on “CHOPS Progress in Alaska.�

Next up is David

Bexte of Schlumberger, who will discuss “Improved Cementing Practice Prevents Gas Migration and Surface Casing Vent Flow.�

Karl Miller of Husky is up next.

On Sept. 11, Jose Alvarez-Marine of the Alberta Research Council will speak on “CSI – Cyclic Solvent Lab to Field.�

Next up is Darryl Corbin of Enviroline Group. He will go over “New Technology for Proactive Corrosion Management.�

EnCanna’s Jason Abbate follows up with “SAGD Fundamentals and Future Growth.�

The ďŹ nal speaker will be Sheldon Jahn of Kudu Industries Inc., speaking on “The Next Generation of PC Pumps.â€?

per hectare ($165 per acre), but, again, is a far cry from the mammoth sales in the southeast.

Ten exploration licences totalling 16,522 acres were all scooped up, and sold for $3,253,608.

The average was $197 per hectare.

Of 73 leases posted, totalling 11,388 hectares, all but two were sold, bringing in $5,489,739, for an average of $499 per hectare. That left 387 New

hectares unsold.

Cavalier Land Ltd. bought ten explorations licences, making it the top purchaser of acreage. The most they paid was $495,714 for a 2,069 hectare block located 7 km northwest of the Spruce Lake North Colony, 9 km west of St. Walburg.

The top price for a single lease was $525,703, paid by Prairie Land & Investment

Services. That bought them a 259 hectare parcel situated 1 km north of the Edam West Mannville (oil) Pool, 24 km northeast of Maidstone.

The highest price per acre was collected from Mineral Consulting Services Ltd. They paid $5,267 per hectare for a 64.75 hectare parcel adjacent to the Edam West Mannville (oil) Pool, 28 km northeast of Maidstone.

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A12

PIPELINE NEWS September 2008

Hoover has nothing on these vacuums Lashburn – Dealing with sand is a fact of life when producing heavy oil, bringing rise to the semi-vac industry. Scor-

pion Oilfield Services of Lashburn is a new entrant in solids hauling, with four lease operators running semi-vacs.

Scorpion ressure truck operator Aric Burgmaier whacks a hammer union closed.

On this August day, Nick Ewanchuk of North Battleford is the lease-operator on the semi-vac. He commutes from North Battleford, where he resides with his new wife. The wedding was just a few days after this interview.

Custom paint jobs are common for truckers. In this case, in Ewanchuk’s case, you have to flip open the hood to get a full appreciation of it – two scantily clad women depicted as either an angel or a devil. Does his wife approve? It was her idea, he says.

Aric Burgmaier is running the pressure truck on this day. On other days, you might find him on a flushby.

The tank they are working on has a closet – doors that keep the

valves enclosed and warm. The bottom of the closet functions as a drip tray, a superior design, according to Ewanchuk.

The first step is checking the fluid level.

It’s important you don’t go below the fire tube, lest it burn out.

Similarly, you don’t want the sand level to touch the fire tube, either. If it does, the sand will cake on into a form of shale. This can also burn out the tube, and lead to a spill. Alternatively, the shale can flake off and plug up the vacuum fittings.

In this case, the three-foot level tap, when opened, releases black, syrupy oil and sand. “Slop,” in other words.

The pair hook up a “Y” connection to a fourinch port on the bottom

of the tank. The vac truck branches off to the side, while the pressure truck’s stinger lines up to penetrate the tank.

The stinger is a highpressure water wand, with jets on the side. The more pressure, the wider the jets will loosen up the sand, allowing more to be sucked out, Ewanchuk explains. Produced water is used for the job.

This stinger is a lot easier on the operators than the old style. It features an aluminum truss rail and a hydraulic motor and chain. Operated from the cab of the pressure truck, the stinger can be run in and out repeatedly and quickly and by remote.

That’s a substantial change from the old standard, which would have wheels and handlebars on the stingers. The

operators would have to manually run the stinger in and out. “I’m pretty spoiled,” Ewanchuk says, noting he had to do it manually with his previous carrier. “I did that for nine years, pushing by hand. It keeps you in shape. It’s not that easy pushing in and out.”

It can take a good chunk of an hour to sting a tank.

“That’s why I’m so skinny,” he says.

A whoosh-whoosh can be heard as the stinger runs in and out, its water hose looking like a snake winding across the ground.

The vac truck is eerily quiet. Usually they are deafeningly noisy beasts.

Ewanchuk explains that he’s using gravity to push out the slop. If he used vacuum, he would end up with lots of water in this case. “I’m not a water hauler.”

Sand would require the use of the vacuum.

If hauling sand, they can use most of the 20 cubic metre capacity of the truck. But with slop, the legal limit puts him around 16 cubic meters.

Shutting it down, they flush the stinger and fittings at low pressure, rinsing out oil from the manifold.

A check of the threefoot tap now reveals relatively clear water.

Ewanchuk does a little cleanup work. “We leave it spotless when we’re done,” he says, noting not everyone does.

They load up their hoses, and soon are on their way, taking the slop to a disposal facility.

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PIPELINE NEWS September 2008

The sting of a Scorpion

By Brian Zinchuk Lashburn – Knowing the crucial part a stinger plays on a pressure truck when stinging a heavy oil storage tank, one might think that’s where the name for Scorpion Oilfield Services Ltd. came from. After all, they run four semi-vac trucks and three pressure trucks, removing sand and slop oil, right?

Well, probably not. You see, solid removal is a relatively new service for the six-year old company, operating out of Lashburn. They just started running semi-vacs this year.

Scorpion is owned by Jory Klinger, Tyler Kerr and Cole Hopfner. Currently Scorpion is running eight flushbys, four coiled tubing trucks and one TMX

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continuous rod truck in addition to the semi-vacs and pressure trucks. “Right now we’re focusing on semi-vacs, TMX and pressure trucks,” notes Hopfner They started with coil trucks and flushby. “Then we started dabbling in everything else.”

“We’re just three normal guys,” says Hopfner. “Same as the lease operators.”

The lease operators make you, he notes. “If you don’t have them, you don’t have nothing.”

“As long as we can make a good living, and [for] those who work for us, we’re happy.

“Our employees and lease operators are why we’re still in business,” Hopfner ads. Four flushbys and the four tractors on the semi-vacs are lease operators.

It’s not easy to build up to the size of Scorpion for relatively young guys.

“There’s a lot of sacrifice,” Hopfner says, talking about some pretty lean times in the beginning. “No social life, no home life. You’re pretty much married to it for a long time to see it grow.

“It’s not just ‘turn the key and you’re a millionaire.”

“Trying to find guys is hard. Really hard,” Hopfner says, noting their current group of operators are really good.

This year marked the fifth annual Brad Phipps Memorial Bull Riding Event in Lashburn, with Scorpion as the major sponsor since its inception.

Phipps was a machinist and bullrider from Lashburn who was killed in an industrial explosion in Lloydminster several years ago.

The PBR-sanctioned event was held Aug. 8 at the Lashburn sports ground.

Thirty bulls and 30 riders participated.

Until now, coiled rod has been more logistically difficult to service than conventional coupled sucker rod.

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PIPELINE NEWS September 2008

AN INTERVIEW WITH OILSANDS REVIEW EDITOR DEBORAH JAREMKO Why did JuneWarren Publishing see the need for a magazine focused on the oilsands industry?

In 2006, JuneWarren Publishing, the Canadian Heavy Oil Association and the Alberta Government collaborated on the first edition of the Heavy Oil and Oilsands Guidebook and Directory. This collaborative effort—and its continued success as it goes into its third edition—confirmed to us that people are thirsty for information about the oilsands.

We knew that an annual publication focusing on unconventional oil was not enough. The stories and statistics of this dynamic industry demand a monthly magazine all its own to complement our sister publication, Oilweek.

When we launched Oilsands Review, we wanted to corner the market before our competitors and that’s what we did. Today, Oilsands Review is the fastest growing subscription-based publication at JuneWarren Publishing.

What is the mandate of Oilsands Review?

Our mandate is to provide balanced editorial coverage of unconventional oil development around the world, discussing the challenges it faces and the triumphs it achieves.

What does the publication offer readers?

Oilsands Review examines the trends, the issues, and the individuals that drive this rapidly evolving industry. Technological innovations figure prominently in the editorial lineup as do improvements in environmental management.

Each issue of Oilsands Review also features a project profile. Many projects are in the construction and development phase. As they

reach completion, our profiles will increasingly focus on operational issues.

As well, we’ve really evolved our statistics section, because we know this information is a major value-add for our readers.

Through our partnership with Nickle’s, which has a large collection of drilling and completions data service, we will be building even more information into this section as well as into the magazine website.

Our features continue to evolve. For example, in December, we published the results of our first ever Producer and Supplier of the Year competition.

The winners were selected by our readers, and our December issue featured profiles of the winning companies.

Who is your competition?

It’s hard to say who our competition is. Nobody else does what we do. The world is increasingly dependent on heavy oil. Its importance to the future of a world that still depends on fossil

fuels only gets stronger. To date, we’re the only publication with its sole focus on this resource.

What lies in Oilsands Review’s future?

We recognize how much the world is watching the development of the unconventional oil industry.

Our website gives us the opportunity to reach people across the world. In February 2008, for example, our website saw visitors from nearly 50 countries. We know that enhancing the website, as well as constantly improving our editorial coverage is the key to our success. Supporting this, our website will soon feature a new, enhanced information package.

In addition, our coverage of oil shale development will expand as that sector grows. •

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PIPELINE NEWS September 2008

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A18

PIPELINE NEWS September 2008

PIPELINE NEWS September 2008

A19

Partners ride the oil wave Gull Lake - Bridge Creek Trucking Ltd. based out of Gull Lake with a satellite location in Shaunavon and is currently riding the oil wave in southern Saskatchewan.

Randy Hunt is one of the owners/partners and the vice president of operations for the company.

Bridge Creek was started back in October of 2003 when Hunt approached the Klassen brothers who were in the same type of trucking business.

At that time Hunt had been in the business since 1987 and was operating Ralph Grant Oilfield Trucking when he approached his competitors, Klassen Brothers Trucking. It took about six months for things to come together.

“I’ve known the Klassens all my life so I approached them to see if they were interested in forming a larger company in the hopes of allowing for more free time and to take some of the pressures off running the dayto-day operations of the business,” says Hunt.

“Before I merged I sold a share of Ralph Grant to my brother Terry Hunt, so now there are four partners,” he says.

Nowadays, the four partners run on an eighton, six-off, two-week rotating schedule. Ken and Lloyd Klassen are into their 31st year in business and Randy Hunt has 27 years experience, so between the three senior partners there is over 89 years experience on the job.

“Our business consists of hauling emulsion,

produced water, condensate and clean oil. We also complete service work on service rigs with the crew or in conjunction with operators at existing facilities. Bridge Creek operates two clean oil terminals, which allow us to ship clean oil down the Plains Marketing Pipeline. It gives the producer that option,” says Hunt.

The pipeline goes 35 miles north and then is shipped to the upgrader via pipeline to the oil refinery in Regina.

“We don’t buy the oil we just ship it,” says Hunt.

“For it to be considered clean basically it has to be less than .05 per cent basic sediment and water,” says Hunt.

Currently, Bridge Creek has 41 employees; 31 of which are truckers, with owners, office staff and mechanics making up

the remaining 10.

“We’re trying to find good men and every one is having trouble finding enough good men. We have a lot of long-term guys and appreciate having employees that have been with us for over 10 years,” says Hunt.

Currently, the company’s line includes 25 units, three of which are leased operators.

“This last couple of years we’ve been buying equipment and growing.

We’ve added at least half a dozen units and we’re growing at a steady pace,” adds Hunt.

“They consist of truck and pups, tractor and tridems and superbees,” says Hunt.

“It’s easy to buy the equipment but hard to find quality employees to operate the equipment,” adds Hunt.

With all those units

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From left, Ken Klassen and Randy Hunt, two of the partners in Bridge Creek Trucking partners, stand in front of one of their trucks. Bridge Creek Trucking was formed when the Hunt and Klassen brothers decided to combine forces.

on the road dispatchers are usually busy from six in the morning until mid-evening. The owners have their hands full in the office as regulations continue to change and are trying to keep business costs down by handling as much as they can inhouse.

“We handle equipment repairs in-house from regular preventative maintenance to major overhauls,” says Hunt.

The cost of doing business is definitely a challenge, says Hunt.

“The costs of diesel fuel and daily operations are a daily struggle. Fuel

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and labour are definitely our biggest expense,” says Hunt.

“It was very busy in the mid-to-late 1990s but obviously the oil price was not at the price we are seeing today. We’re looking forward to the years ahead and to continued growth,” says Hunt.

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A20

PIPELINE NEWS September 2008

Beware of buffalo; well, not really Lloydminster – Pulling into a yard in an industrial park and seeing “Beware of Dog” signs is no surprise. Anywhere, there could be a German Shepherd or Rottweiler lurking.

But a buffalo?

Pulling into Kobes Welding Ltd. on the west side of Lloydminster, Pipeline News was in for a surprise. Sitting in the sun, just like

a dog, was a very large, very brown animal. Was it a calf? Nope, say the office staff, when you go in to alert them of the critter on site. It’s a buffalo. Go ask the guy in back.

A buffalo. Not penned, no game fence – the full bore Dances with Wolves-type buffalo.

His name is Bailey.

Bailey Junior, in fact.

That’s because he’s not the first buffalo to hang around in these parts.

Bailey, Sr. was well known, it turns out. Any visitors are made well aware of that, with photo albums quickly passed around in the coffee room. One album is of press clippings. Bailey met Ralph Klein, and Paul Martin. He met the Queen and Prince Phillip. Bailey was even

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in People magazine a few years ago. Bailey used to go into schools.

He was in several movies. Oh yeah, and Bailey was full sized. His website, www.baileythebuffalo.com, shows him in his owner Jim Sautner’s house.

But this spring, Bailey died, after eight years. He got hung up in his feeder in a freak accident.

That made Sautner very sad.

Sautner got a new buffalo this summer, and named him Bailey, Jr. He commutes with Sautner each week from the Edmonton area to Lloydminster, where he hangs out in the Kobes yard until the weekend.

Then he climbs into the folded down back seat of Sautner’s truck, and, wearing a diaper, goes for the 2 1/2 hour ride.

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“He kept hogging all the bedsheets, so I had to throw him out.”

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“Why do people climb Mount Everest?”

Sautner replies. “With Bailey, Sr., he was the only buffalo in the world like that.”

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like Bailey, Sr. “He’s our guard dog,” Sautner says. “No one’s ever told him he’s a buffalo. He thinks he’s human.”

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PIPELINE NEWS September 2008

Truck Zone sells to Edmonton ¿rm Lloydminster – Built up as a family business, Truck Zone in Lloydminster is now under new ownership. Northwest Spring & Machine of Edmonton took over in July.

Brothers Peter and Steven Parkinson are still running the show, at least for now. Steve expects he’ll stay on for the foreseeable future, while he’s not sure what his brother plans to do.

“Ultimately, the price was right,” Steve says. The money and freed up time will allow him to expand his outfitting business, for instance.

Peter and Steve bought out their father Bob in 2006. He founded the operation as Complete Spring & Mechanical in 1985. Both boys started young in the business. What was once a suspension and brake shop has grown into a full service shop, from the wheels up, according to Steve.

“We’ve turned ourselves into a one-stop-shop, especially for fluid haulers,”

he explains.

Probably 90 per cent of their business is oilpatch related, he adds.

It became Truck Zone in 2004. The old name was limiting, they found.

The building is deceptive from the front. It’s been expanded several times.

Eventually the neighbouring building was purchased.

“We’ve been able to maintain a steady workforce,” he says, but it’s difficult to attract people. “I hire kids right out of high school.

Currently they are looking into hiring immigrants, he adds.

In the back of the shop, a drilling rig is being serviced. How does one get into working on such specialized equipment?

Steve says people will try you out, and you grow into it. “While it’s here, can you do the oil,” for instance. Next they want a coolant leak addressed. Next thing you know, you’re working on the big stuff.

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PIPELINE NEWS September 2008

A23

Opportunity takes Àoor sweeper to foreman David Zabok has been a shop foreman at Lloydminster’s Truck Zone for nearly two years now.

Lloydminster – He spent a little time working in a unionized mill in B.C., where he comes from, but that didn’t last too long. David Zabok, then 21, now 26, was looking for more. “Opportunity, basically. I had a job within an hour,â€? he says upon his arrival in Lloydminster. He started basically as a oor-sweeper.

Now he’s a shop foreman with his red seal journeyman heavy equipment technician ticket.

There’s also a class 1A in his wallet. He’s been a foreman at Lloydminster’s Truck Zone for nearly two years now.

In Lloydminster, he found an ability to work while getting an education through apprenticeship. Back in B.C., he says, “You’re in apprenticeship, but they don’t want to let you go to school. You’re too valued [to let go],� he says. “Here, it’s no question – get ‘er done.� “I’ve always been into hot rods,� he says, talking about the 1974 Dodge Dart he’s building into a full pro-street machine. “She’ll be 600+ horse and she’ll be a bad machine,� he says.

Zabok’s found out life is not just about a hot ride. Married a year now, one senses he’s settling down a bit. “I fell into it. I bought a big, liftedup truck,� he says of the free money oilpatch lifestyle.

That doesn’t impress him as much anymore. Indeed, Zabok says, “In a sense [there is] too much money.�

“I’m serious about what I’m doing, and that’s what’s got me this far,� he says. “There’s all this opportunity here, let’s get into ‘er and get ‘er done.�

His goal is to have kids and eventually move home to B.C., but don’t expect that any time soon. “That will not happen if there’s no work,� he says.

Other options include heading further east into Saskatchewan, closer to some family, or remaining put.

How does he ďŹ nd dealing with truckers? “The majority who have been doing it for a while are easy to get along with,â€? Zabok says. The less experienced haven’t ďŹ gured out the right questions. “To decipher their lingo can be tricky at times. [You’ve] got to ask the right questions to get the right answers.â€?

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PIPELINE NEWS September 2008 Work began in earnest in mid-August, twinning Highway 16 as it enters Lloydminster.

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Work began in earnest in mid-August, twinning the stretch between the rail overpass and Saskatchewan tourist information oďŹƒce. The $11.4 million project is being done under the province’s Urban Highway Connector Program. “We recognize the challenges of rapid growth occurring in Saskatchewan, and we understand that the province has a role in improving and maintaining these highway connectors on a cost-shared basis,â€? says Highway Minister Wayne Elhard.

The province is picking up 75 per cent of the tab, or $8.4 million. Lloydminster is spending $3 million.

The provincial share of the funding comes from last year’s sale of the NewGrade Heavy Oil Upgrader in Regina.

Lloydminster Mayor Ken Baker said, “As Canada’s only border city on the boundary of Alberta and Saskatchewan, we are the main commerce centre between Edmonton and Saskatoon. When you add that to our growing heavy oil industry, the need to twin this important urban connector is obvious.�

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A25

Black gold girl

Machinist Katy Messmer will soon be taking over the family business in partnership with her brother Adam.

Lloydminster - She often runs the shop in the morning, but soon, Katy Messmer will be in charge of more than just mornings.

In the coming years, Katy and her brother Adam Sawarin will be taking over the family shop, Triland Welding & Machine Ltd., in Lloydminster.

“Adam and I have never got along as kids. Here, it’s great,” she says, when asked about working with her sibling.

To say Triland is a family operation is an understatement. Dad Tim Sawarin heads up the operation, while mom Susan keeps books. Katy and Adam are both machinists, while Danny, the youngest child, acts as custodian.

“We all enjoy going to work in the morning. It’s not often you can say that,” she says.

“This is a maintenance and repair shop, and is always different every day,” Messmer notes.

In the shop, Katy is the main CNC (computer numerical control) operator, while Adam has a knack for welding. Messmer described the CNC work as fun, “But I enjoy the manual one instead.”

“I like working with the brass the most, even though it sprays in your face.”

“I really enjoy the artistic side of machining,” she adds, indicating a desire to get into sculpture.

Growing up, she wanted to be an engineer. She started sweeping floors in the shop at the age of 14, and then started doing small machining jobs. By the time she was in grade 12, “I decided this was what I wanted to do. I didn’t want to sit at a desk.”

It meant having to take her high school classes in the wrong order, but due to her prior experience, it was not much of a problem.

Did her parents push her to join the family business?

“They were always hoping, but they never pushed us,” she responds.

Messmer did her apprenticeship training through SIAST’s Kelsey campus, including pre-employment training in Kindersley.

When Messmer took her journeyman exam, she scored an incredibly rare 100 per cent, something her instructor had not seen in 25 years. Indeed, some day she might consider teaching at the college level, but she would like to see that happen in Lloydminster. While there are other trades available at Lakeland College, Messmer sees a need for machinist training. She’s also considering taking an updated CNC course.

Messmer is married to a mechanic and has two kids, ages two and five. She took a year off for each child, and found she was missed. “I had people saving jobs for me when I came back,” she notes.

“A lot of the old farmers tend to like a woman machinist.”

Indeed, during the interview, one of those farmers came in, seeking her out.

“We like farmers, because they pay right away,” she says with a smile, noting that billing in the oilpatch can take months. The majority of her work, however, is oil-related.

“I’ve been doing it for 14 years, and I still enjoy it,” she says.

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A26

PIPELINE NEWS September 2008

What to do, what to do?

North Battleford – Saskatchewan’s provincial New Democratic Party caucus met in North Battleford Aug. 18 and 19 to discuss strategy for the coming fall.

High on their agenda was what to do with the record windfall coming the province’s way this year, in large part due to resource revenue.

“A lot of the work the New Democrats have done over the last 16 years has allowed additional investment in the energy sector, potash and new resources,” said Len Taylor, Battlefords MLA and energy critic.

A substantial portion of the discussion was on energy issues, according to Taylor. He said it was to ensure all NDP caucus members are aware of development, not just in Saskatchewan, but throughout North America.

Credit should go where credit is due, he points out.

“We cannot accept easily accept the Saskatchewan Party taking credit for the evolution of the policy related to resources in our province,” he says, noting the

BELL BUDDY

1 minute or less to install a BELL.

Sask. Party was “dragged away from a royalty review debate.”

Lorne Calvert, NDP leader and former premier, notes companies are looking primarily for good resources. Secondly, they want stability on royalties and regulations. Finally, they want a good relationship with the department responsible and the public service.

Calvert says royalties are always under constant review, and having them reviewed by Enterprise Saskatchewan, as Premier Brad Wall initially said, or leaving them for 16 years, does not work. “Neither is a sensible position,” Calvert says.

With the province now expecting a $3 billion surplus this year, the question of debt repayment has been floated around a great deal. “There is a real sense they should pay down the debt his party rang up,” says Calvert.

Some pundits have suggested the province could wipe out its debt in just a few years. Calvert says that is a choice, but doesn’t feel every dollar should go to pay down debt.

“You can pay down the province’s debt, but if the homeowner goes into debt, how much does that get you ahead?

“I think you need a longer term plan.”

There are other needs, Calvert says, pointing to education as an example.

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6PRRWK RSHUDWHU With such smooth ditch walls, it’s apparent this excavator operator has got all the moves. This stretch of Husky 24-in. pipeline is being installed on the west side of Lloydminster, running into the Lloydminster reÀnery. Photo by Brian Zinchuk

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A27 PIPELINE NEWS September 2008

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Owners responsible for retrieving machines on trail at all times. ATV Club reserves the right to restrict any riders not complying with ATV ACT.

A28

PIPELINE NEWS September 2008

Company boasts over 40 years of earth-moving experience Swift Current - Tim Baiton is the owner/operator for Superior Trucking and Earthmoving in Swift Current, a company which has been in operation for over 40 years, which is primarily involved with oilďŹ eld construction and lease preparation.

When Baiton goes out onto a

Owner/operator Tim Baiton of Superior Trucking and Earthmoving stands beside his D8R bulldozer.

lease the consultant looks after sweeping for power lines and ow lines and usually they have a safety meeting and move the equipment. Soils are stripped out and levelled for a deck for the drilling rig and usually a cement pit is dug for the rig and ďŹ nally an access is stripped.

Baiton’s father and uncle started the business way back in 1966. “My uncle passed away a long time ago, at least 25 years ago, and my dad was running it. He’s retired and comes out to keep an eye on things every once in a while and basically after the ’90s we downsized and it’s basically just me now,� he says.

Baiton runs the company with a D8R bulldozer and a Kenworth truck and trailer. “As far as the oilďŹ eld goes usually there are D6’s, D7’s and D8’s. You can get bigger cats than that though.

I have a D8 and it’s a little bit big for some of the smaller jobs but on the big jobs there’s enough machine to handle the job and enough power and weight to pull the trucks around,� he says.

Having his dad in the business, Baiton says it’s hard to remember a time when he wasn’t running a dozer. “I was running dozer probably by

the time I was 10 years old and welding from a really young age, so I’ve been around it all my life,� he says.

From time to time Baiton gets his cousin to help him out.

For southwest Saskatchewan the focus has moved from oil to natural gas and been steady for the last several years. “When it was just oil it was up

and down. The 1990s we pretty much crazy and now it’s busy but seems to be holding at more of at a reasonable pace,� he says.

As for the foreseeable future, Baiton says it’s not going to get any slower. “Around here I don’t see things going down for the foreseeable future.�

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PIPELINE NEWS September 2008

A29

Already big in Lloyd, Gibson moving into Bakken region Lloydminster – With over five decades of oil hauling behind them, Gibsons is one of the largest players in the oil hauling business. Their current fleet is 1180 units, with about 120+ running in the Lloydminster region.

This summer, however, Gibsons got its feet wet in the Bakken play area, with a new satellite operation east of Weyburn at Griffin.

“We have four active units in that area,” says Bob Clarke, area manager for Lloydminster. Clarke, who overseas the Weyburn-area operation, says they intend to grow there.

If a well is too far from a flow line, it will be trucked, he notes.

BUSINESS FOR SALE Situated in the Heart of Heavy Oil Country

TWB Construction Ltd. is a very successful oilÀeld construction business located in Maidstone, SK. This established family business specializes in Gravel delivery, oilÀeld clean-up, demolition, snow removal and oil sand hauling.

A full line of modern equipment: backhoe, trackhoe, small cats, tractor and trailer units plus a modern ofÀce, shop and yard.

Gibsons runs one of the largest Áeets of Áuid haulers in the Lloydminster region.

The majority of the fleet is run by contractor carriers, also known as leaseoperators or owner-operators.

Jeff Taylor, regional manager for truck transportation, says they have three main products they haul – produced water, sales oil to strategic pipeline terminals, and emulsion (i.e. mixed water and oil).

While there is a variety of combinations in the fleet, including Super-B, bodyjobs pulling a pup, and tri-axle, the bulk of the fleet runs on triaxle trailers. Clarke says narrow roads, and small leases make the tri-axle the unit of choice.

“We’ve invested over $700,000 in a simulator to train new drivers and improve the skills of the drivers of our fleet,” says Taylor. The simulator, similar to what is used in pilot training, allows for training in adverse conditions such as bad weather and roads. It can also simulate a tire failure.

It’s part of a broader training regimen that includes “driver developers,” who will conduct random check rides with a driver. Taylor says it is unique to Gibsons, and response has “actually been very good.”

The program, which has been around since the mid-1990s, helps drivers identify things they can improve on. “It’s a process that’s proven well for us,” Clarke notes.

As with pretty much every facet of the oilpatch, finding workers is an issue.

“Truckers want the wheels turning. They just want to move. Waiting gets them frustrated,” Clarke says. “We work with our clients to minimize that,” he says, noting efforts to make dispatch more efficient.

A satellite communications system and onboard computers allow for GPS tracking and electronic dispatch.

“We experience turnover,” Taylor acknowledges, “but we also have some long term truckers.”

Clarke explains they have 35 drivers with over five years in with Gibsons. The longest service driver has been around for 28 years.

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A30

PIPELINE NEWS September 2008

Hydrovac operation in Lloyd

With a gorilla on your back, you have to know how to use your spear.

In this case, the gorilla is Silverback Hydrovac Services, a new hydrovac operation in Lloydminster. Wielding the spear is Geoff Barr.

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Lloydminster – Starting with a flushby unit, Geoff Barr was looking to spread his eggs into other baskets. The basket he chose, however, is more like an anteater, and has a gorilla decaled on the side.

“I decided it might be an idea to diversify, something that isn’t 100 per cent dependent on oil and gas,” Barr says.

So he, his wife Angie, mom Pauline Barr and dad George Barr decided to get into the hydrovac business. Ironically, the effort to diversify is still heavily involved in the oilpatch.

“It’s mostly oilfield so far,” he acknowledges when asked what sort of work the hydrovac has been bringing in.

“They’re in huge demand in oil and gas,” he notes.

“This just opens up another door for us. It keeps our options open.

“I’ll take what I can get right now for work.”

The new tridem hydrovac unit is run under the name Silverback Hydrovac Services Ltd. “We just got this truck at the end of May,” he says.

The flushby is leased on at Allstar Oilfield Services in Lloydminster, Barr ads.

He’s got full time drivers and swampers for each of the two units, and splits his time between them.

There are nights where he doesn’t get in until late on the flushby, then it’s off to the hydrovac the next day.

At 26, Geoff holds a two-year business management diploma from Lakeland College. His wife has a bachelor of commerce degree, so it was pretty much inevitable they would end up in business. Noting his entrepreneurial streak, Geoff notes, “I don’t like being an employee.”

Alberta Clipper begins to gust Kerrobert – Work has kicked off for Enbridge’s mammoth Alberta Clipper mainline pipeline project.

On the Alberta side of the border, access work began on Aug. 18, with Willbros Midwest Pipeline Construction LP. On Aug. 23, Waschuk Pipeline and Robert B. Somerville kicked off their efforts. Sommerville is doing the western half of Saskatchewan, while Waschuk is handling the eastern half. The project crosses the Alberta border near Kerrobert, and the Manitoba border not far from Moosomin, intersecting Regina along the way.

The project is a major expansion of Enbridge’s crude-oil capacity, adding another 36-in. Mainline from its Hardisty, Alta., terminal to Superior Wisconsin. At the same time, another existing line will be reversed, bringing diluents back to Alberta. The growth of crude production from the Athabasca oilsands around Fort McMurray is the primary impetus behind the expansion.

Alberta Clipper is a 1,607 km crude oil pipeline project. Pending U.S. regulatory approvals the pipeline is scheduled to be in service in mid-2010.

The pipeline will have an initial capacity of 450,000 barrels-per-day (bpd) and allow for expansions to increase capacity up to 800,000 bpd. Alberta Clipper will be integrated with, and form part of, the existing Enbridge Pipelines system in Canada and the Enbridge Energy Partners' Lakehead system in the United States.

“Construction is well under way,” says Curt Boechler, senior advisor, communications, for Enbridge Pipelines Inc. “We’re pleased we can get underway. It’s a lot of planning and regulatory work,” he says.

“It’s nice to start actual construction.”

PIPELINE NEWS September 2008

A31

Viking parcels top Kindersley land sales Kindersley – The Aug. 11 crown land sales saw $14.3 million of land rights sold, an average of $566 per hectare ($229 per acre).

This is double the $7.1 million raised in the June land sale, where the average was $689 per hectare ($279 per

acre).

Five exploratory licences were posted, and all ďŹ ve sold, totalling 5,553 hectares. They went for $5.3 million, or $955 per hectare on average.

Of the 95 leases up for sale, 93 were picked up, totalling 19,661 hect-

ares. The $9 million price tag resulted in a $456 per hectare average.

Canadian Coastal Resources Ltd. spent $4.7 million, making it the top purchaser. That gave them ďŹ ve lease parcels and one licence. They also paid the top dollar for a single lease, dropping $736,520 for a 259 hectare (640 acre) parcel situated partially within the Avon Hill Viking (oil) pool, 12 km northeast of Kindersley.

They also paid top dollar for a single

licence, spending $3,276,631 for a 902 hectare (2,230 acre) block. That block falls within the Dodsland Viking oil pool, 15 km northeast of Kindersley.

The highest dollar per hectare in the Kindersley-Kerrobert area was paid

by Prairie Land & Investment Services Ltd. They fronted $4,680 per hectare ($1,894 per acre) for a 32 hectare (80 acre) parcel. This was also located in the Dodsland Viking oil pool, 17 km northeast of Kindersley.

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Running 24/7 Canadian Horizontal Drilling is doing the road crossing of Highway 16 for Husky’s new big-inch pipeline on the west side of Lloydminster. The line crosses the intersection of the Yellowhead and 76th Avenue. A pilot hole was drilled Àrst, and at the time of this picture, on Aug. 20, they were pushing through a 24-in. ream. A 30-in. ream was next, followed by pulling in the 550 m drag section. The crew has been running 24/7, with 13 people on staff.

Photo by Brian Zinchuk

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A32

PIPELINE NEWS September 2008

#5042A 2008 Chevrolet Tahoe LTZ

#5044 2008 Chevrolet Tahoe LTZ GM Co. Car

#4885 2008 GMC SLE Yukon XL 9 Passenger

#C 2008 Chevrolet LTZ Crew Dually 4X4 Diesel

#5043A 2008 Chevrolet Trailblazer

#4949B 2007 Durango Hemi

WAS 42,000

WAS 67,200

WAS 55,180 0 klms

72,000 new

SALE $39,829*

SALE $50,500*

SALE $45,986*

SALE $52,900*

SALE $28,000

SALE $32,500*

#4897A 2002 Explorer

#4692A 1999 GMC SLT Yukon

#5020A 2006 GMC SLE HD 1/2 Crew 4x4 8600

#4787B 1999 Chevrolet Tahoe 4x4

#5058A 2005 GMC SLT Diesel Crew 4x4 Lifted

#4950B 2000 GMC SLE Ext

WAS 9,500

WAS 9,500

SALE $8,377*

SALE $5,955*

SALE $22,000*

SALE $8,900*

was 11,500

SALE $36,000.*

SALE $8,500*

#5019A 2005 GMC SLE HD 1/2 Crew 4x4 8600

#5050A 2005 Pontiac Montana SV6 AWD

#4948A 2005 GMC SLE Ext 4X4

#4944A 2006 GMC SLE 4X4 Crew

#4980A 2004 Chevrolet ZR2 Blazer 4X4

#4855A 2007 Chevrolet Uplander LT2

Was 21,000

was 19,900

was 16,000

WAS 24,000

SALE $21,000*

SALE $16,000*

SALE $17,780*

SALE $17,659*

SALE $13,970*

SALE $19,898*

#4976A 2007 Chevrolet LT Crew 4x4 Diesel

#4973A 2005 Pontiac Montana SV6

#4996A 2006 GMC SLT Crew Z71 4X4 w DVD

#5036A 2004 GMC SLE Reg 4X4 40K

#4849A 1998 F250 3/4 Reg Cab

#4868B 2001 Ford XLT 4x4

WAS $4,900

was 8,500

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SALE $16,000*

SALE $27,925*

SALE 17,000*

SALE $2,990*

SALE $6,900*

#4971A 2005 GMC SLE Yukon XL 4x4

#4894A 2005 GMC SLE Crew 4x4

#4932A 2005 Chevrolet LS Crew 4X4

#4926B 1997 Chevrolet 2wd Reg Cab

#4841B 2003 F150 Supercab 4x4

#4990A 2008 Chevrolet Equinox Sport

WAS 26,000

WAS 26,000

WAS 28,000

WAS 14,500

WAS 26,000

SALE $22,880*

SALE $19,181*

SALE $25,640*

SALE 3,928*

SALE $10,954*

SALE $23,900*

#4988B 2001 Focus

#4989A Pontiac GT Torrent AWD

#4785 2008 Pontiac Torrent All Wheel Drive

#4817 2008 Pontiac Torrent

#4847 2008 GMC W/T Reg Cab 2wd

#4578 2008 Chevrolet W/T Crew Diesel 4x4

33,740.00

31,020.00

28,825.00

SALE $4,500

SALE $25,878

#4614A 2007 Chevrolet Cobalt SS Supercharged

#5051A 2006 Chevrolet Cobalt SS

#5065A 1990 Chevrolet V 6 5spd

#4898 2008 Chevrolet Impala LT 50th Anniversary

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36325.00

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SALE $11,900

SALE $2,600

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SALE $34,400 WITH 0%*

SALE $7,996*

#4920A 2002 Focus Wagon

#5012A 2008 Chevrolet Impala

#4983A 2008 Pontiac G6

#5013A 2008 Pontiac Grand Prix

#4076 2006 Pontiac Grand Prix GT Demo

WAS 39,140.

was 18,000

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SALE $17,944*

SALE $19,900*

SALE $23,500*

SALE $16,900

#4970A 2000 Grand Marquis LS

#4104R 2007 Chevrolet HHR LS

#4734B 2007 Chevrolet HHR LT

#4024R 2006 Chevrolet HHR LT

WAS 23,600

WAS 19,500

WAS 20,000

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SALE 17,500*

SALE $16,497*

SALE $14,976*

WAS 27,500

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was 19,900

SALE $5,900* #4865A 2001 Chevrolet Z24

WAS 8,500

SALE $6,121*

#4555 2008 Buick Lucerne

56,615.00

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#5010A 2008 Chevrolet Cobalt

#4911C 1998 Contour

SALE $1,900*

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PIPELINE NEWS Saskatchewan’s Petroleum Monthly

B-Section September 2008

Seeking to revolutionize heavy oil production: Wayne King Story and photos

by Brian Zinchuk Lloydminster – Some people just want a job.

Others want to change things. Wayne King might just change the world, at least the world of heavy oil.

Those are big words, but they’re about a big man who already has had a big impact. Speaking with a passion in his voice and the assuredness of someone whose been there, done that, he quickly fills a notebook.

King founded Grithog in the mid-1980s. “I was working for Lloydminster Heavy Crude,” he says, working with pressure trucks, tankers and vac units. “At the time, we were sending our men into tank cleanouts. You could see their eyeballs and white teeth, and that was it. They were a mess.”

And in the words said, or at least thought, by every inventor, King says, “There should be a better method.”

“I’ve always been an inventor,” he says, noting he converted his mother’s garden tiller into a gocart at the age of nine.

Try you out King’s early work began what would be a continuing theme in many of his projects – using augers to move solids, particularly in removing sand from heavy oil storage.

He had no money at first, but was able to secure $50,000 under a federal program called IRAP – Industry Research As-

sistance Program, done through Alberta Oilsands Tech Research.

“It’s very difficult to come up with an idea,” Then that idea has to be refined extensively and commercialized. Sometimes you can’t sell it.

Maybe it’s too expensive, or too soon. Industry could simply not be ready for you, King explains.

Then, just about the time industry recognizes you, competitors see you as a threat, cut their rates, and discredit your technology.

There are three types of people in this regard, he says. Some are very positive, and see a need for improvement. Others resist change. “He simply wants to do nothing,” King says, noting, “They’re being safe.”

The third will try your tech, but at minimal risk to them.

“Almost everyone is willing to try something new on a short term basis,” he says.

“Normally customers will try you out, and encourage you on, at no cost to them,” he says about being given an initial shot at a new initiative. They will always give you the worst case to try out. “They want to see you fail, typically,” he says.

A lot of junk At a storage location near the Lloydminster airport, King is the king, or perhaps emperor, of his “empire.” It’s a repository of failed experiments, prototypes, and things that didn’t quite make it.

I’ve always been an inventor, I converted my mother’s garden tiller into a go-cart at the age of nine King says he can get lost there for hours, rethinking failed attempts. Some of the items get reused in new projects, as opposed to starting from scratch.

Quoting Thomas Edison, he says, “In order to be an inventor, you need a good imagination and a lot of junk.”

There have been a number of successes arising from the accumulation of that “junk.”

The first was the Grithog – a machine that would be used for door pulls on production tanks. It affixes itself to the door, and mechanically uses a telescoping, swinging arm to enter the tank. It’s all hydraulically controlled.

“Then the industry told me ‘we want to remove solids without taking the tank out of service.’”

That led to the Grit Removal System (GRS), which permanently mounts augers in tanks.

This in turn led to a new type of sand hauler.

Gravel trucks had been used before, but they were messy and prone to spills, King says. So he took aluminum trailers, sealed the endgates, closed the tops, and began loading through hatches. The lighter weight means another seven tonnes can be hauled on each trip, compared to a tri-axle semi-vac truck. It’s also

less expensive per unit, he adds.

The GRS begot the Penetrator, a machine that inserts an auger into the bottom of the tank.

“You don’t want to truck a lot of water, you want only sand,” he says, noting the system does not stir up a tank in the manner stinging a tank with high pressure water does. ɸ Page B3

Wayne King

Rodney Bor assembles natural gas heating units at Grit Industries. They sell under the Cold Weather name.

Photo by Brian Zinchuk

FOR ALL YOUR FLEET MANAGEMENT AND OTR NEEDS

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Commercial Truck Center

B2

PIPELINE NEWS September 2008

Smart tires wear RFID Lloydminster – Radio Frequency ID tags (RFID) have been strongly promoted by Wal-Mart as a way to keep track of inventory and reduce costs. Now they are making their way into tires, with a few added bells and whistles meant to make life easier on the trucker and fleet manager. “The tag itself is the size of a pen tip,� Jae Malinowski of OK Tire in Lloydminster says. With two short wires, the grain-of-rice-sized tag is applied to the inside of a tire with a tire patch. Depending on the model and cost, it can simply be for inventory, or it can monitor air pressure and temperature.

That information is then relayed to a brain unit on the truck, and, with a subscription, can be sent via the truck’s satellite system to the fleet manager. “Bob’s had a tire failure on his right inside drive and he doesn’t even know about it. His fleet manager will know before he does,� says Malinowski. That fleet manager can then organize a repair.

But it doesn’t need to come to

that. Just as in cars, where the tire pressure can be seen on the dash board, so too could the trailer and truck report all 18 wheels to the driver. You could spend $50 on a repair instead of $400 on a replacement, notes Malinowski.

Fleet managers can see other benefits, like tracking what tire and tread combinations are working best in your particular application.

Tires pulled from service and recapped can also be tracked. “When you’re running a tire fleet for a large commercial company, your tires are among your top three expenses,� says Malinowski, citing fuel and labour as the other two. “This is a new way of tracking your investment in your tires.� “This is so new, really nobody in Canada has been using them,� he says, noting mining applications are the exception. In that case, tire temperature is a major concern, in addition to pressure.

Malinowski says RFID for tires should be available locally in September.

This little tag, the size of a grain of rice, can help tires last longer.

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PIPELINE NEWS September 2008

B3

Seeking to revolutionize heavy oil production: Wayne King ɺ Page B1 Timing “Timing is everything,” he says. Environmental regulations can change, and something acceptable a year ago is now out of bounds.

Secondary containment is an example, he says. He saw an opportunity, and now sells a line of secondary containment specifically for the petroleum industry.

The next product was spend catalyst from upgrading facilities, taking care of the granular that attracts heavy metals. Chep, a US-company, handles all Canadian catalyst, according to King.

“Chep came to me 12 to 15 years ago to adapt Grithog technology for catalyst waste streams.

“We said, ‘Hell yes!’”

The first installation was in Lloydminster, and is now in four other Canadian locations, plus several US sites. It includes adapted rail cars and unloading facilities. The system is an adaptation of the Penetrator, using auguring equipment.

New tech With international sales, Grithog became Grit Industries. “When you develop equipment, you have to build your own. You need welders, in-house talented design and fabrication people,” he says.

In the back yard of the Grit Industries plant is the fabrication shop, where the design work happens. Here a CNC-plasma cutter slices through metal like butter.

Beside it, a new water jet cutter uses garnet to precisely make cuts.

We walk past very large rings mounted on a metal box. These are the rotating lifting tables destined for use at Automated Tank Manufacturers at Kitscoty.

Customers come to them with ideas for unique equipment, one-of-a-kind affairs.

This is one of them.

In this shop, one finds large versions of their natural gas dry line heaters. It’s part of King’s mission to change the world of heavy oil.

Changing world King speaks of three phases. The first is the heat-driven loop, making use of methane gas that is normally vented into the atmosphere. Methane is nasty stuff, 20 times more potent a greenhouse gas as CO2. It’s burnable as a fuel, but is often not of sufficient quantity to be worth capturing and selling.

Grit developed a burner that can operate off of ounces of pressure, like a barbecue, instead of pounds of pressure used in tank fire tubes. This dramatically increases thermal efficiency, a paltry 40 per cent in current usage.

The trick is to use a thermosyphon heat transfer. It boils water to create steam under a vacuum, lowering the boiling temperature of water to 43 degrees C. But it’s not a boiler, he points out. The result is a closed loop system that flows by gravity. Its thermal efficiency is 80 per cent.

The process can heat flammable liquids, process vessels and natural gas.

Pay particular attention to the natural gas part.

In 2003, they built their first natural gas line heaters for SaskEnergy. Now they have hundreds natural gas heaters across North America. While touring the plant, Pipeline News observes heaters meant for small communities to larger centres.

Phase two is a mechanical production treater. It will separate oil, sand, water and natural gas at the well head. It will gather natural gas through compression.

The rest goes into the same production tank, but the key point is they won’t comingle. “This is particularly important if you want to flowline water and oil,” he says.

The intent is to produce clean oil with less than half a per cent of black sand and water.

There’s a lot of pressure on the industry in the Lloydminster region due to all the truck traffic related to heavy oil.

The mechanical production treater is becoming commercialized, he says. Now they have to develop a market for it.

Flowlines Phase three is the big one. It’s still in the early stages, but according to King, it has the potential to be a “major step change” in the production of heavy oil.

It’s called the Grit Production Unit. It addresses the cost of energy to keep heavy oil hot, the cost of trucking, and sand handling and disposal.

Heavy oil around Lloydminster used to be flowlined, he notes, but that was before the days of the progressing cavity pump. The PCP dramatically increased oil production, but also led to sand production. That meant no more flow lines, and the need for tankage and trucking.

In a shop-built, skid-mounted device, the GPU incorporates a mechanical treater for separation and sand handling equipment. The oil and produced water would be flowlined from the wellhead, instead of trucked.

“My vision is to have a GPU at each wellhead, highly efficient, with plowable, high temperature flowlines to terminals or sales lines.

“We have prototypes built, tested and proven in the field,” he says. The next step is to put pipeline in the ground for further testing.

“I’m thinking it will be commercialized within five years,” King forecasts.

If successful, the GPU could revolutionize cold production of heavy oil. But he acknowledges that Lloydminster, with it’s large installed base of current methods, might not be where it takes off. The North Slope of Alaska, Kuwait and Madagascar could take advantage of it. “They don’t have the infrastructure in

Troy Croucher operates a CNC plasma cutter, cutting under water to eliminate smoke.

place,” he says.

“My business is to develop a technology, prototype, debug, field trial, perfect it then provide sales and aftermarket sales to the client,” he says. In the end, he seeks repetitive manufacturing.

Will he change the world? Maybe. Maybe not. But for sure, Wayne King and Grit Industries will try.

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B4

PIPELINE NEWS September 2008

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PIPELINE NEWS September 2008

B5

Circle D specializes in rig moves Swift Current - Circle D Transport has a lot to offer heavy after a while and they’re pretty versatile units and Versteeg adds the company is very busy at this in the oilfield transportation business with 130 employ- they can pull a trailer as well,” he says. point in time but says there have been busier years in ees at its disposal – 15 of those located in Swift Current A 400-inch wheel base bed truck is used primarily the past. alone. for drilling rig moves. “ It’s not as busy as it’s ever been. In 2005 everyone Dwight Versteeg, vice president of operations with “The bed truck spots the equipment on location. It made a killing still, it is busier than ’06 and ’07but not Circle D says the company recently as busy as ’ 05, all signs are pointed to 2008 changed hands in July and is now owned getting even busier,” says Versteeg. by the Mullen Group.

When it comes to advantages over the “We service the oil and gas induscompetition Versteeg points to his fleet. try through trucking. We move drilling “I think we definitely have very nice rigs, tanks, pump jacks and pipe, basically equipment. We have a lot of bed trucks to anything to do with the oil and gas inoffer and newer equipment. Most of our dustry we’ll haul it,” says Versteeg. “We equipment is only two or three years old specialize in rig moving.” at the oldest and we also have a very exCurrently, the company has offices perienced staff which is always a bonus,” in Swift Current, Taber, Brooks and he says.

Medicine Hat. With the industry pumping away at While the company is looking to close to record activity levels Versteeg says expand what it already has in Swift Curthat trucking companies are having diffirent, it is also looking at establishing new culty retaining good employees. office in eastern Saskatchewan and pos“It’s mostly driver s. It’s a struggle sibly even North Dakota. keeping them. We’re probably short about “We definitely want to expand in 15 per cent and the other 85 per cent are Swift Current that’s one of our biggest pretty solid,” he says. “It’s mostly due to goals right now. We see opportunity in the competition. It’s easy for a truck driver Swift Current for sure,” says Versteeg.

A Circle D truck sits outside the Swift Current ofÀce. The company, which to walk down the street and be working Circle D has about 74 oilfield trucks specializes in rig moves, has 74 oilÀeld trucks at its disposal. tomorrow. The loyalty is kind of gone a at it disposal including everything from little bit,” he says.

40-tonne pickers, to 400-inch bed trucks and planetary will pick the building up and put it in place. We have 12 As for Versteeg himself he has been in the busidrive tractors with a variety of wheels up to 40 wheel- of those units,” he says. ness for 24 years and done everything from drive truck ers.

The planetary drive tractor is used to move large to truck-push to dispatch and safety and now manageVertsteeg says a 40-tonne picker will lift 40 tonnes coil tubing and rigs. ment. and has a 40-tonne capacity crane on a truck.

A planetary drive unit is like a tractor with a winch “ I’ve been through it all and there’s been a lot of “We use them for heavy lifts on pump jacks, tanks, but it has planetary drive with a gear in the rear end, change over the years. I’ve seen a lot of these companies and matting on rig moves. The mating gets saturated which allows the movement to occur without damaging turn into big companies and with mergers and takeovers with water and dirt and frost and they get to be pretty the unit, he says. there’s not too many small guys left.”

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B6

PIPELINE NEWS September 2008

Crude Master focuses on trailers Lloydminster – Crude Master Transport Inc. Is a relatively new entrant into the crude hauling business in the Lloydminster region.

Started three years ago by Heath and Murray MacDonald, Heath runs the show. Th eir fleet consists of 35 trailers and one company unit. “Nobody runs company trucks,” Heath MacDonald

explains.

In three years, they’ve grown by nearly half.

They started with a sizeable fleet, with 26 units right off the bat. Heath MacDonald used to work with another hauler, and before that, he notes, “I was in the rig moving end of it.” Murray MacDonald, Heath’s father, heads Teran Enterprises, a tank

hauler and picker truck operator.

Most of Crude Master’s work is in the Lloydminster area, although they do some work around Bonnyville. Finding operators is the tough part, Heath says. “That is the biggest challenge – finding people.”

“You can’t really address it. It’s a supply and demand industry. You work with what you have.” Is there a lot of poaching going on?

“Oh yeah,” he says. But he adds they don’t solicit drivers. “Our reputation brings people here.”

“We’re a competitive company. We pay quick and we run new equipment. They go to work every day and they don’t have to worry.” Husky, CNRL and Provident Energy are Crude Master’s top clients.

While his dad and wife are both involved in the operation, Heath MacDonald is not so sure he wants his kids to get into the business, at least the trucking end. “It’s a very demanding industry,” he says, hoping his kids will seek out educations for themselves. “As a young guy getting into it, you never seem to get away from it after you experience the pay structure,” he says.

Murray agrees. “The transportation industry is a hard business to be in, for families and everything.”

Asked about high fuel costs, Heath says you have to surcharge it. Most clients don’t have an issue with it.

“Our industry would be a whole lot better if we could work shoulder to shoulder. Competition is great, but blind competition isn’t,” he explains. “The illusion of ‘having all the work is better’ is exactly that – an illusion.

“You get into a bidding war, and soon you’ve got the majority of the work, but the quality is low.

So is cutting rates cutting your throat?

“More or less,” he replies. “Your quality of service has to be high enough to warrant your rate, otherwise you don’t have the work.

Safety, he notes, is a definite priority with oil companies. “It’s made our industry better.”

PIPELINE NEWS September 2008

New project pumps CO2 underground Regina - There’s good news in store for Saskatchewan’s environment and it comes from a project being launched by the Petroleum Technology Research Centre (PTRC).

PTRC communications manager Norm Sacuta reports the Aquistore Project is a five-year $100 million project running from 2008 to 2013 by the PTRC. At the end of July, $5 million in funding was dedicated to the project through Sustainable Development Technology Canada.

“The grant is spread out over four years and will provide a certain amount of money over those years in research development and demonstration … the Coop Refinery in Regina that will capture the CO2 and put it into a saline aquifer … 10-12 kilometres away and the saline aquifer is at least 2-3 kilometres below surface,” said Sacuta.

The PTRC reports approximately 500 tonnes/day of CO2 will be captured from the Consumer’s Co-operative Refinery in Regina from one of three reformers currently in operation.

The PTRC also reports the CO2 capturing system is to be installed in the current expansion underway at the refinery. A dedicated pipeline of approximately one inch in diameter will transport the CO2 to one of three injection sites currently being considered.

The project will be the first to investigate the feasibility of storing CO2 in a saline aquifer in Canada, and one of the largest in the world. The project is a joint collaborative research venture between government and industry.

“There are saline aquifers all over the globe and they offer very large storage potential estimated in some sectors to be able to store all the CO2 from set-point refineries to put as much as 1,000 years of CO2 production underground,” he said.

These salt-water formations are similar to oil formations and the Aquistore Project will study these formations to see what happens to ensure the process is safe and that there is no leakage.

Secuta adds the PTRC is currently monitoring the Weyburn-Midale CO2 injection project to make sure that CO2 is not seeping back to the surface.

StatoilHydro, a Norwegian company and the largest offshore oil and gas company in the world predicts there is enough aquifer storage potential on Europe to store CO2 for the next 600 years.

A cross-section diagram shows the method the Petroleum Training and Research Centre will use in injecting CO2 into an underground acquifer. diagram courtesy PTRC

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B7

PRODAHL ENVIRONMENTAL SERVICES LTD. Your full service secondary containment specialists

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B8

PIPELINE NEWS September 2008

Secondary containment pros

Secondary containment provider Brian Prodahl says, “You just seem to keep growing, even if you don’t want to.” Prodahl is now looking to set up dealerships for its corrugated steel product.

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Lloydminster – Prodahl Environmental Services Ltd. of Lloydminster is moving up the supply chain as suppliers of secondary containment.

“We are a direct supplier now,” says Brian Prodahl, noting they have moved up the chain from a dealer to a distributor.

Prohahl supplies corrugated steel ring of sizes from 12-in. to 45-in., with most clients opting for the larger size due to the smaller footprint required.

In business since 1994, Prodahl has focused on secondary containment since 2001. “That’s all we do,” he says.

In that, they’ve seen growth, with a new office and shop in recent years and a cold storage building that just went up at their east-side Lloydminster location.

In early September, they are taking delivery of a roller that will enhance their capabilities. “We’re going to bend our own steel,” Prodahl says.

With the new roller, they will be able to take delivery of flat steel, and roll it as needed, as opposed to having curved steel in stock. This also adds the capability of custom orders.

“We’re capable of making our own liners, and now we’re capable of making our own steel.”

While concrete or earthen embankments are also options in secondary containment, Prodahl says lightweight, portable and re-usable steel units are becoming more of the norm.

“Basically it’s a grain bin modified to fit the oilfield,” he says, noting there is “a lot of good old farm boy sense behind the oilfield.”

With the added capability, Prodahl is now looking to set up dealerships, possibly in Bonnyville, Peace River and Kindersley.

“Our biggest advantage is being family-owned,” notes Brian Prodahl.

Brian’ wife Diane, son Tony, and sonin-law Jason Kvill are all partners.

Steve Williams, a long time friend, is the only partner not tied by blood or marriage. Prodahl says because each of the family has a vested interest in the success of company, it goes a long way. “Our core staff are also owners,” he says.

A lot of that comes down to willingness to work. “It’s a lot of hard work, but it’s not technical.

“I have three of the best setup crews in the business. Anyone can say that, but I can prove it,” he says of his 11 staff plus a contract crew.

“The young fellas are better in the field, so we leave them at that.”

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PIPELINE NEWS September 2008

B9

Heavy activity means a lot of mud &RPSDQ\ FRPSOLPHQWV 6ZLIW &XUUHQW %XLOGLQJ 6XSSOLHV Swift Current - Jake Janzen is a truck driver with Swift Current Mud Supplies. “We warehouse and distribute drilling mud,� he says.

Drilling mud is used with the drilling rig for the oil and gas wells and they use it to drill their holes, says Janzen. “They use it to drill

their holes to circulate their mud to drill the holes before they put their casing in,â€? says Janzen. The mud is pumped through to grease the hole, which helps with the drilling. “We warehouse for dierent mud companies: Mudco, Baroid, Bri-chem. They use many dierent products to mix

their mud depending on which areas they’re drilling, depending on how deep they’re going and whether they’re drilling for gas or oil.�

Business at Swift Current Mud Supplies is busy – busier than Janzen can remember.

Janzen has been in the business since about 1986 – for 22 years.

For all of those years Janzen has worked with Swift Current Building Supplies, which is the mother company to Swift Current Mud Supplies. “The (higher) price of oil and gas has led to the business. We have

Swift Current Mud Supplies, situated on the North Service Road on the west side of Swift Current, is busy with activity being generated from 22 rigs in the region.

contained in paper bags and some comes in the form of barrels. “Usually one trailer load is enough for two to three holes,� says Janzen.

Of the future in the business “I don’t think there’s any indication it’s going to slow up yet.�

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B10

PIPELINE NEWS September 2008

Iron Horse pulling ahead in the Shackleton ¿eld Swift Current - Iron Horse Oil and Gas Inc. recently completed a third phase of drilling in the Shackleton Field and has another 32 wells to drill this winter.

The upcoming project, located northwest of Swift Current, represents a $16 million investment, Rob Solinger CFO and vice president for Iron Horse confirmed.

“It’s a winter-access-only project which is considered an environmentallysensitive area. It’s sand dunes and sensitive ecologically. In March, we completed another 32 wells, which brings the total number of wells we have in the area to 68 and we still have another 32 wells to drill this winter,” he said.

Solinger says it’s a project that has been four to five years in the making.

“We’re in the middle of an area that’s been drilled up over the last 10 years and the lands we’re drilling are owned by the Carry the Kettle First Nation and we agreed to pay them some royalties,” he says.

Coming to an arrangement with the leaders at Carry the Kettle was a straightforward business arrangement, says Solinger.

‘They entertained proposals from a number of companies and we put together the most competitive bid in terms of royalties and bonus payments and both parties have benefited,” he says.

The play that Iron Horse is in to is a shallow gas field, which can be completed, fractured and tied in for approximately $500,000 a well.

“Because it’s a winter-access only we build ice roads which adds to the cost.

We do the prep work in late fall and the pipelining. There’s a short window to get 32 wells drilled,” he says.

There is expected to be two drilling rigs working on the project and another two units will be lined up for completion.

The company is looking to frac two or more zones on each hole and the logistics of having the equipment on the go, along with completing casing, cementing and logging means the area will be a very busy location this winter.

The current management team has been holding the Iron Horse reins for the past six years and Solinger adds the entire emphasis is to create shareholder value through low-risk drilling and with gas headed north of $8 it seems that the company is delivering on its mandate.

The company is also looking at drilling in the Pembina Field west of Nisku, Alta.

“We have seismic and geological data on that and the one were drilling is similar to one producing at a prolific rates nearby,” says Solinger.

The company has also picked up some land recently in northwest B.C.

Iron Horse has a technical team of 15 people actively examining exploration opportunities and the company is also considering property acquisitions.

In the Shackleton Field, Iron Horse shares the play on a 50-50 basis with Grizzly Resources, a private sister company sharing common management with Iron Horse.

While the drilling will be contracted out, Solinger adds the company will be working with a variety of contractors for both oilfield hauling needs as well as for ice road construction capabilities.

A typical Iron Horse well site installation in the Shackleton Àeld. The company will be drilling another 32 wells this winter.

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PIPELINE NEWS September 2008

B11

New addition to the southwest patch 6OLFNOLQH RSHUDWRUV RIIHU H OLQH DQG VZDEELQJ WRR Swift Current - Canadian Sub-Surface Energy is a wireline and swabbing company that moved into Swift Current in June.

Kelly Mulgrew, southern area manager says the company provides both the slickline and electric line services along with the swabbing. “They ďŹ nd all the zones and then they also perforate, which activates the zones,â€? says Mulgrew.

The swabbers primary task is to remove water from the well, allowing more gas or oil to ow out of the well.

On the slickline side of the business, Mulgrew himself heads up a four-man crew on two slickline trucks housed at Swift Current. “We’re involved in running plugs and we perform pressure and temperature tests and pretty much oer any service work that needs to be done,â€? he says.

While June was the ďŹ rst month of operations for the company in Swift Current, Canadian Sub-

Surface Energy opened another oďŹƒce in Estevan only a few months earlier. The company has its head oďŹƒce in Calgary with additional service stations all over Alberta.

Having been in business since the mid-1990s Canadian Sub Surface Energy is expanding rapidly. It is a publicly traded company on the TSX. Mulgrew has lived in Swift Current for the past two years and has 13 years of industry experience tucked into his back pocket.

Business has been good for the newest edition to Swift Current’s oilpatch. “Actually the last couple weeks it’s been at out we just can’t get enough hours in the day,â€? he says. “We’ve done some work around Shaunavon and out to Estevan and Weyburn and up in Kindersley,â€? he says.

Mulgrew says activity levels in the patch depend on who you’re talking to. “The drilling side is at out and the service

end of it is trying to keep budgets tight. There’s not a lot of wasted money anymore,� he says.

Mulgrew is optimistic about the remainder of the year. “It’s going to get crazy here right away. This September, October and November it’s going to be really busy and then it should be at out after the holidays,â€? he says. “Our biggest forte is being able to supply the e-line, the slickline and the swabbers. Being able to supply the full-meal deal and having the equipment to be able to do it. Our equipment is where it needs to be.â€?

Canadian Sub-Surface Energy recently moved into the Swift Current region, offering slickline, electric line and swabbing services.

Two of a kind Pick a derrick, any derrick. These two units could be seen operating just southeast of the Husky Energy Upgrader, on the east side of Lloydminster, Aug. 19.

Photo by Brian Zinchuk

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including a PCP hold-down at the Lloydminster Heavy Oil Show September 10th & 11th Booth #362

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Products and services are available through CE Franklin's 24 pump shop service centers and at Dura's 2 , square foot manufacturing facility in Swift Current, Saskatchewan.

‡

B12

PIPELINE NEWS September 2008

Jamal Contracting does it all &RPSDQ\ KHDG UHOLHV RQ \HDUV RI H[SHULHQFH Swift Current - Jamal Contacting is a general contractor in Swift Current, which is headed up by Mike Bertig. While Bertig’s company is involved in

oilfield construction, he adds the business is pretty much wide open to any type of construction project.

Bertig is partners in the operation with his

wife Lorraine. “We pretty much attempt to build anything.

We do lots of project management design and then we also prefabricate oilfield buildings and office trailers and supply motor shack buildings,� he says.

Jamal has been in operation for the past 15 years and Bertig has 38 years of personal construction experience.

Bertig adds the company tends to focus on oil and gas projects in the winter. “In the winter we focus on prefabrication of metal buildings and it’s a pretty solid business in the winter time and we have supply stores purchasing our buildings to sell to the end user,� he explains.

In the Swift Current area, Jamal has had to diversify and be knowledgeable in all areas of construction not just oilfield but residential and commercial as

&7%#6+10 9+6*

well. “One of the larger projects I did was a processing plant for cleaning chick peas and I designed and built that which was a $4.5 million project and I’ve worked on tons of projects,� he adds. “We’ve also built and designed portable barns particularly a 30x40 prefabricated build in the shop, which was delivered and erected in four-and-a-half hours and ready for use.�

Jamal has been active with a steady amount of business over the past year. “This year is one

of our positive years we haven’t had to work for it, it’s come to us and with the new and repeat customers it’s been pretty good,� he says.

Currently, Jamal has six employees but also employs the services of subcontractors. “You can sub a lot of it out and hit smaller companies. There’s a lot less hassle that way,� he says.

Bertig explains his design capabilities were picked up over the past 38 years of working in the construction field. “It was just learned through the whole process of being in construction. I was in the

Anterra and Reece announce joint venture Shaunavon - In midAugust Anterra Energy announced that it entered into a joint venture with Reece Energy Exploration Corp.

In the deal, Reece will invest $3.5 million in the drilling, completion, fracture stimulation and equipping of horizontal wells on Anterra’s lands at Frontier in southwestern Saskatchewan through development drilling in the Lower

Shaunavon formation.

Owen C. Pinnell chairman and CEO for Anterra said drilling would start before the end of September. “Initially it will be one well and depending on success, after that we will keep drilling. These are horizontal wells one mile long with horizontal legs with multi-stage fracs,� said Pinnell. “Potentially, it could be 10 horizontal wells

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drywall business and we had 128 guys working for us in Saskatchewan and B.C. working on high-rises and high-end hotels and building earthquake (dependable) structures and that’s given me a fair amount of knowledge on construction,� he says.

Being a senior man in the industry, Bertig has some interesting thoughts for the future. “I think with the global market I feel every part of the world is going to achieve their identity as part of their expertise and that’s what you’re going to have to do.�

and estimated recovery would increase by10 to 15 per cent representing 200,00 barrels recoverable oil per well,� said Pinnell.

In a news release Pinnell added: “Vertical wells however are small producers and the true potential of the ďŹ eld lies in improving the production potential of both the Upper and Lower Shaunavon formation through horizontal development.

Reece has had success with horizontal wells and multi-stage completions on several projects in Saskatchewan and brings this knowledge and experience to the Frontier project�.

Pinnell continued, “A successful horizontal completion in the Lower Shaunavon is expected to deliver signiďŹ cant incremental reserves and will give us the conďŹ dence to embark on a more ambitious development program.â€?

The agreement creates an area of mutual interest between Reece and Anterra covering 20 townships. Reece and Anterra have agreed that Reece will operate the drilling and completion of all new wells drilled on the joint venture lands.

PIPELINE NEWS September 2008

B13

Power tongs and pressure testers

Gull Lake - Daymond Lloyd owner/manager for 4-Star Ventures is a veteran oilman who has worked in Australia, Indonesia and throughout much of Western Canada in his years in the patch.

The company is based out of Gull Lake and he reports his company is doing a lot of work in the Weyburn region. “We are a power tong and a pressure test business,� says Lloyd. “We’ve been in the power tong business for the last 24 years and in ’84 got into the tong business and then we got out of it for a while and we got back into it in 1995.

About two years ago we decided to get into the pressure testing business to try to diversify a little bit. And at that time my son Derek was running a truck for us. He had been working for the company for a few years and we decided to take him on as a partner and that’s when we had the name change and he and his wife Tiffany took over a lot of the operations part,� he said.

The company is now a real family aair with Daymond and his wife Laurie acting as partners while son Derek is also a partner and the operations manager and his wife Tyany is the sales manager, while daughter Lacey does ďŹ eld sales in the Weyburn area.

4-Star Ventures supplies a service to the drilling rigs. “We have power tongs and we send a truck onto location ‌ every new well that’s drilled basically needs power tongs there are some hydraulic rigs that don’t need them but most do,â€? Lloyd explains. “The rig picks up a joint of casing and we’ll screw it together to a

speciďŹ ed torque,â€? says Lloyd “You always run surface casing ďŹ rst so you can put your blow-out preventors on and the well production casing goes inside the surface casing ‌ on a good well they’ll run two to three strings of casing.â€? says Lloyd.

In pressure testing, after the surface casing is completed, blowout preventor valves are screwed onto the top of the well bore. “The entire assembly has to be pressure tested to speciďŹ ed levels. They

have to make sure there’s no leaks,� says Lloyd.

The company employs pressure test trucks rigged up with a low volume, high-pressure pump. The truck also has a recorder that records each valve. Typically, it’s a 10-minute test, with a hose hooked up to the blowout preventor and the pressure is recorded and it’s demonstrated on a chart that all the valves held. “The whole job usually takes about four hours,� says Lloyd.

In the tong business

CONTRACTING INC.

himself, Lloyd set about building up the business and building up his eet. “We’ve got four pressure testing units and we’re operating between Weyburn, Swift Current and Kindersley and we have a dual unit operating in Quebec,â€? he says.

The dual unit runs both power tongs and pressure testing out of the same unit. “We’re in the process of rigging up two more dual units. We get it done locally. My son is doing it and we have another fellow that does a lot of fabricating out of Gull Lake,� says Lloyd.

The company also has ďŹ ve power tong trucks and employs nine workers.

When asked about activity levels in the oilďŹ eld Lloyd responds with a provincial perspective. “I’ve seen the Swift Current area way busier.

Estevan has never been this busy and that’s where we’ve met a lot of our new clientele. The Kindersley region doesn’t seem to be too busy and we go into

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northern Alberta every winter for additional business.�

Lloyd adds that business in southwestern Saskatchewan has evolved over the last dozen years. “Swift Current has a big oilďŹ eld area and when we ďŹ rst came back there was a bunch of small companies drilling, which is better for the service industry but then all the mergers and takeovers happened and the activity dropped o. Now they hold a lot of land and the bigger companies aren’t doing as much work, but now in the Shaunavon ďŹ eld there’s about 30 different companies on our clientele list and it’s better for us when the smaller companies come in,â€? he says. “ I see Saskatchewan coming forward and the change in government even if it’s just the perception, if nothing else, makes all the dierence in the world. ‌ Now we’re more attractive to drill in than Alberta and I give a lot of credit to the government for that.â€?

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A pressure truck and a tong truck owned by 4-Star Ventures. The company, which is based in Gull Lake, operates throughout much of the province.

4-Star has the capability for computer torque monitoring. “On certain strings, torque has to be so precise the computer tells the tongs when to quit torquing. We send a man with the tongs and another man with the computer. That’s one area of the tong business we’re in that most people aren’t,� he says.

While the Lloyds have been back in Saskatchewan since 1995, they spent seven years living in Alberta and even worked in Australia and Indonesia for a while. “In Indonesia we drilled in a lot of remote locations in the rain forest and drilled on several dierent islands and it’s all a tribal atmosphere including 1,500 islands and seven or eight main islands. There are close to 175 million people living there and 230 dierent dialects. You could spend years there and not see everything,â€? he says.

Once back in Canada and back in business for

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B14

PIPELINE NEWS September 2008

Midwest Surveys searches for new ofÂżce territory

By Geo Lee Pipeline News Estevan – Midwest Surveys is a western Canadian land surveying company that doesn’t

need GPS to realize its busiest oďŹƒce is Estevan where demand continues to rise for oilďŹ eld surveys for well sites and pipelines.

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â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;ve noticed our volumes have increased about 20 per cent per year in the last couple of years,â&#x20AC;? said oďŹ&#x192;ce manager David Quirk. â&#x20AC;&#x153;With the Bakken expansion in Estevan we have a marked increased in the requirements for industrial and residential properties so we get involved with that too.â&#x20AC;?

With more than 40 employees based at the companyâ&#x20AC;&#x2122;s oďŹ&#x192;ce on 4th Street, Midwest has purchased and is renovating the former Supreme OilďŹ eld building on Edward Street and is scouting other locations for relocation. â&#x20AC;&#x153;We have expanded beyond the capacity of this oďŹ&#x192;ce with our current staďŹ&#x192;ng levels,â&#x20AC;? said Quirk. â&#x20AC;&#x153;We want to have a location that would allow us to expand again without having to make another move. We did not envision that we would expand as quickly as we have. I would think

Midwest Surveys ofĂ&#x20AC;ce manager David Quirk commutes to work in his Harley Davidson motorcycle, but he says leisure rides are rare as the Bakken play has signiĂ&#x20AC;cantly increased the volume of land surveying.

itâ&#x20AC;&#x2122;s basically because of the Bakken. â&#x20AC;&#x153;Manpower is always a big challenge to ďŹ nd adequate staďŹ&#x192;ng and surveying is a highly technical ďŹ eld. We ďŹ nd with GPS and computers and AutoCAD to prepare the survey plans, that it takes post secondary education to be able to complete these jobs.â&#x20AC;?

Midwestâ&#x20AC;&#x2122;s experience includes right-ofway surveys, municipal surveys and construction

surveys, but in the Bakken its bread and butter are oilďŹ eld and pipeline surveys. â&#x20AC;&#x153;We do lease surveys so the oil company can deal the with landowner and get permission to survey the well site and then they would have the plan thatâ&#x20AC;&#x2122;s required, to go to SIR (Saskatchewan Industry and Resources) and to get their licences to drill the well,â&#x20AC;? explained Quirk.

Midwest also has to

work with multiple individuals and organizations from the oil or pipeline client and the land owner to pipeline construction contacts, oilďŹ eld consultants and government land titles staďŹ&#x20AC;.

Regarding Midwestâ&#x20AC;&#x2122;s well site and pipeline clients Quirk said, â&#x20AC;&#x153;We try to make sure we keep our communication lines open to get them the product they need to get their job done.â&#x20AC;? ɸ Page B15

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B15

Rapid expansion for Midwest Surveys Éş Page B14 While recruiting trained staďŹ&#x20AC; is an on-going struggle for Midwest in a boom market, new survey tools like GPS and AutoCAD for drawing plans have reduced the grunt work of land surveying. â&#x20AC;&#x153;Iâ&#x20AC;&#x2122;ve been involved in surveying for about 30 years, and when I ďŹ rst started we were measuring the angles with the transit and measuring distances with a measuring tape,â&#x20AC;? said Quirk. â&#x20AC;&#x153;Now you take the GPS and go to a location and it tells your position relative to the rest of the world.â&#x20AC;?

Midwestâ&#x20AC;&#x2122;s technicians use the AutoCAD to prepare plans that show location of wells and pipelines. At one time all plans were hand drawn in the oďŹ&#x192;ce.

When it comes to pipeline work Quirk says a big part of surveying is to locate buried facilities as well. Plans are used by contractors that tell them where the pipeline is and any possible problems they may encounter.

One of the possible hazards for Midwestâ&#x20AC;&#x2122;s surveyors is an unexpected attack from wild animals as Quirk recalls was the case for an employee in one of Midwestâ&#x20AC;&#x2122;s northern posts. â&#x20AC;&#x153;One of the guys heard this snarling growing behind him. He was looking for a survey pin with a metal detector and there was a coyote. The coyote attacked him and he hit it over the head but it did bite him on the arm. â&#x20AC;&#x153;He was going back to his truck and he heard this other noise behind him and a bear came out of the bush and grabbed the coyote and hauled it oďŹ&#x20AC;.

Our guys do see the moose out there where they are working in southeast Saskatchewan. They are not scared of you.â&#x20AC;?

Quirk said the most dangerous part of the job is driving and safety training comes with the territory. â&#x20AC;&#x153;We drive thousands and thousands of kilometres every year going back and forth to work sites,â&#x20AC;? said Quirk. â&#x20AC;&#x153;There are a lot of big units out there hauling water and oil and moving rigs.

Itâ&#x20AC;&#x2122;s a diďŹ&#x20AC;erence type of traďŹ&#x192;c than you would get on a normal highway or in a residential street,â&#x20AC;? said Quirk.

Drivers also take the industry standard courses like H2S Alive, CPR, First aid, transportation of dangerous goods, and ATV and snowmobile training. â&#x20AC;&#x153;We take defensive driver training and 4-wheel drive training. Some of our driving is oďŹ&#x20AC; road so you have to be prepared for that,â&#x20AC;? added Quirk.

When asked if thereâ&#x20AC;&#x2122;s any diďŹ&#x20AC;erence surveying in the Bakken, Quirk said, â&#x20AC;&#x153;It has been fairly easy going for us in that itâ&#x20AC;&#x2122;s a new area that hasnâ&#x20AC;&#x2122;t had a high amount of previous surveying done for other oil well facilities. Itâ&#x20AC;&#x2122;s an area where there are good records.

One of the struggles when you are working in areas in southeast Saskatchewan that have been involved in oilďŹ eld work for many years is that the records are not as good as they could have been. There are a lot of things buried or above the ground thatâ&#x20AC;&#x2122;s thereâ&#x20AC;&#x2122;s no record of. â&#x20AC;&#x153;In the Bakken we have not seen a lot of previous oil activity so surveying is easier and part of is with the technology nowadays, we can do the survey with a high degree of accuracy.â&#x20AC;?

As for what lies ahead, Quirk said, â&#x20AC;&#x153;We see things staying as busy as or busier than they are and the Bakken ďŹ eld expanding. We have no reason the think there will be much of a downturn in the foreseeable future.â&#x20AC;?

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Jason Waugh: 306-577-9900 (Carlyle) Trevor Van Alstyne: 306-421-0344 (Estevan) Ryan Toms: 306-452-8182 (Redvers) Richard Delmaire: 306-577-9962 (Redvers) Jayme Schwindt: 306-861-1950 (Weyburn) Shaun Barta: 306-577-9961 (Carlyle) Chris Piper: 306-577-7166 (Stoughton) Brad Naviaux: 306-452-8020 (Redvers) Chad Himmelspeck: 306-577-1357 (Carlyle) Cory Bell: 306-421-8428 (Weyburn) Shawn Hoffmann: 306-861-4374 (Weyburn) Brent Babcock: 306-891-9598 (Weyburn)

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B16

PIPELINE NEWS September 2008

Alida– An ounce of prevention is worth a pound of cure. This motto is the operations mode of Three Star Environment Corp. whose consultants help oil companies limit their environmental footprint and manage clean-ups cost-effectively.

Our goal is that at the end of the lease, the site should look exactly the way it was before they disturbed it,” said Dean Hoffman, the project co-ordinator of the Alida-based company, Company business cards list a range of services targeted at oil companies from pre-site assessments and environmental audits to well and battery abandonments and well water testing.

“The environment is becoming a more prominent issue with a lot of oil companies,” said Hoffman. “More companies want us on site when they are spotting their well sites. We can look at the site and determine if there are any environmental concerns. It saves them money.

“You don’t want to go through the whole protocol and have the lease rejected and start the protocol over again. Now they are having us come out and do the initial assessment.”

Three Star’s work also involved mitigating spills from surface spills to flow line breaks and tank overflows and decommissioning buried flare pits.

“In the past, oil companies weren’t too concerned about environmental issues cost-wise, but now a lot of companies have budgets set aside for clean-ups,” said Hoffman. “They are more aware of the cost involved down the road on the impact on the environment. Now they are taking precautions up front which saves them a ton of money. They are having us come out as well and do the initial assessment.”

Pre-site assessment specialist Renette Garbutt collects baseline data on site conditions like vegetation, topography, hydrology, wildlife and soil before an oil company drills for oil.

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Environmental scientist Danyelle Thompson checks out a site south of Kisbey where Three Star Environmental Corp. supervised the sampling of a Áare pit with an auger rig.

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PIPELINE NEWS September 2008

â&#x20AC;&#x153;A lot of the information we are gathering is due diligence on the oil companyâ&#x20AC;&#x2122;s part. It saves them money down the road,â&#x20AC;? said Garbutt. â&#x20AC;&#x153;When they reclaim the land, they know what was there. We take pictures and we take samples that we send to the lab so it gives the background analysis of what was present in the soil.â&#x20AC;?

Red ďŹ&#x201A;ag environmental issues are sloughs and sensitive wildlife in the area. â&#x20AC;&#x153;If there is a slough within 45 metres of a well site the Ministry of Environment requires us to provide mitigation measures,â&#x20AC;? said Garbutt. â&#x20AC;&#x153;Another big consideration is endangered species in the area. It depends on the species and the time of year. We work with oil companies and â&#x20AC;&#x2DC;Sask Environmentâ&#x20AC;&#x2122; to work around that if possible.â&#x20AC;?

HoďŹ&#x20AC;man believes oil companies are becoming more aware of environment issues and endangered species. No drilling is allowed within 1,000 metres of the threatened Ferruginous hawk that nests from March 15 to July 15. â&#x20AC;&#x153;You are seeing companies that know the guidelines and will schedule drilling after July 15,â&#x20AC;? he said. â&#x20AC;&#x153;New legislation has said no more buried ďŹ&#x201A;are pits and the government is changing how many cubes of spilled oil are reportable. Itâ&#x20AC;&#x2122;s keeping the oil companies honest. There is also a push to keep disturbance to a minimum on native prairie grasslands to protect it and some species.â&#x20AC;?

Other agencies like Saskatchewan Agriculture and Food and the Prairie Farm Rehabilitation Administration come into play during pre-site assessments on Crown land or native prairie grasslands and require a full report from Three Star including recommendations on site construction.

Every site that is built on private land goes through a 12-point environmental checklist. The checklist notes concerns like sloughs or any kind of protected provincial land or endangered species. Every site is reviewed to determine if the oil company can build it and the government sends Three-Star a letter of approval or rejection. â&#x20AC;&#x153;If itâ&#x20AC;&#x2122;s rejected they tell us why and we work with the oil company to get it approved,â&#x20AC;? said company consultant Danyelle Thompson. â&#x20AC;&#x153;Oil companies for the

most part understand we are out there to help them and do things cost eďŹ&#x192;ciently and help the environment.â&#x20AC;?

Three Star Environment was formed by HoďŹ&#x20AC;man as a spinoďŹ&#x20AC; from Three Star Trucking and went independent in 2003 as a one man operation that has grown to 12 full employees, summer students and another branch in Shaunavon. â&#x20AC;&#x153;Our client base is growing all the time,â&#x20AC;? he said. â&#x20AC;&#x153;We are getting more work because a lot of companies want pre-sites and they want well tests for domestic water wells done prior to drilling. If they are drilling within a certain proximity to well water they want to ensure they donâ&#x20AC;&#x2122;t damage it.â&#x20AC;?

A Three Star consultant will conduct pre and post drilling tests of the water quality, ďŹ&#x201A;ow rates and how quickly the well recharges. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s saving them money from possible litigation. If we have the documentation it protects the landowner and the oil company,â&#x20AC;? said HoďŹ&#x20AC;man.

Three Star has also done what it calls â&#x20AC;&#x2DC;downstreamâ&#x20AC;&#x2122; work, decommissioning underground fuel storage tanks, and got approvals for the new ethanol plant in Shaunavon. Locally, they have also completed Phase 1 audits on farm property for banks and mitigated a fertilizer spill at an elevator.

B17

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PIPELINE NEWS September 2008

Oxbow strives to check off its wish list

Diana Mathison is the president of the Oxbow Business Association that is actively working to attract new businesses and services to town along with tourism opportunities.

Geoff Lee Oxbow– As the Town of Oxbow grows along with the oil and gas boom, so does a wish

The Economic Development Office Schoonbaert works for was created in 2005 in partnership between Oxbow and the RM of Enniskillen to manage the expansion of the community growing out of the oil boom in southeast Saskatchewan. In 2006, Oxbow had a population of 1,305, a number that continues to rise as new businesses set up shop.

Some of the largest employers are SaskArc Industries Inc., Red Hawk Well Serving Inc. and Spearing Service Ltd. trucking as Oxbow’s location on Highway 18 is central for servicing oil wells in the Bakken play and oilfield hot spots in

top $1,688,750 worth of permits for all construction types.

The town has developed a new 14-lot subdivision called Spruce Grove and sold the lots for just $150 a front foot for the construction of high-end homes. Construction is also under way on another 42- lot subdivision of smaller houses in an area called Crescent West.

“We have enough land in the town limits that belongs to individuals,” said Mayor Dale Ching. “We are trying to purchase a quarter section on the east side of town. We also have our eye on another small parcel of land of about four

Mayor Dale Ching and his wife Rosemary are proud of their property and the town. The couple spend part of their summer days watering more than 80 Áower baskets and displays throughout the community.

list of services and amenities including restaurants, fine dining, hotels, dentists and optometrists and construction and trade workers.

“The oil and gas industry has gotten busier than ever,” said Penny Schoonbaert, the town’s economic development officer. “Oil companies are locating here because we are in the middle of the Bakken formation.

It’s the perfect place to be.”

Manitoba.

“They are needing more employees and therefore needing more housing and the amenities that go with that,” said Schoonbaert. “There isn’t a house to be found and even the little 50-foot lots that the town had have sold.”

In 2006/07 the town issued building permits worth more than $2,384,421 and year to date numbers up to the beginning of August

acres also east of town and we have made an offer to purchase. We own the subdivisions, service them and sell them.

“One of the biggest problems we have is getting housing for people who more here. SaskArc is bringing people from all over the world and these people need housing. We don’t have any rental housing.”

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nity Settlement Committee threw a widely successful international dessert party in July as part of an ongoing welcoming campaign.

The Oxbow Business Association is also hard at work to attract new businesses, retailers and services to town and entice newcomers and residents to shop locally.

“We have a tax abatement to help any new business locate here and we have incentives for local businesses to upgrade their properties,” said OBA president Diana Mathison who owns First Impressions women’s clothing store.

New small businesses are eligible for low-interest loans up to $15,000 through the Economic Development Committee Inc. funded by the Saskatchewan government.

“We are looking for any new business to come to town,” said Mathison who sits on town council.

“We are welcoming them whether it’s oil or retail.

I want to see the town grow in every way, shape and form that it can.

“We have a lot of service companies but we are lacking in retail and it makes people shop out of town. We lose a fair number of people to Minot. It’s discouraging but we’re hoping to offer more retail in a couple of years.”

Mathison is buoyed by the news the town has sold three lots to Co-op that will build a large grocery store complex in a prominent location on Railway Avenue, one of the main thoroughfares.

“The new Co-op will help immensely. It will bring people from Alida and Frobisher,” she said.

The Economic Development Office is also hoping to entice an optometrist and a dentist to town to complement

the town’s two doctors stationed at the Oxbow Family Medicine Clinic.

Additional health services are offered by the Galloway Health Centre and Bow Valley Villa for

the Souris River. It’s beautiful. We’ve worked hard at keeping the town nice looking.”

A local flower committee has installed more than 80 hanging flower

Lynn Baertwald with Alberta Locating, checks for buried pipes and metal at the site of a planned Co-op complex in Oxbow.

seniors.

“As our homegrown population ages, getting to those appointments out of town is getting more difficult,” said Schoonbaert.

Keeping healthy and fit is easier with the opening of the Oxbow Fitness Centre Co-operative Ltd. earlier this year.

An Olympic size swimming pool, an 18-hole golf course and hockey and curling rinks round out the main recreational facilities.

In 2009, construction will start on a new super school that will replace the existing high school, elementary school and special needs school.

Construction of a new church for the Plymouth Brethren is also nearing its completion.

“People come here because of the doctors, and the schools and the rinks as well as work,” said Ching. “We are also fortunate to live beside

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baskets and floral displays throughout the downtown core and Ching helps his wife Rosemary with the daily watering.

For tourists, the town maintains the small but scenic Oxbow Campground, one mile south of town. Summer visitors also flock to Moose Creek Regional Park only four miles north of town for recreation and boating on the 26 kilometrelong reservoir created by the Alameda Dam. The OBA is spearheading the repair of the dock and boathouse to re-launch the popular pontoon boat rides on the Lady Souris. “We’ll be up and running by next year,” said Mathison.

The town is also debating whether to host its own oil and gas show in 2009 after Schoonbaert reported on the success of Redvers’ biennial show held earlier this year.

“Oxbow would be recognized as a central point in the oil industry,” she said. “Every industry here is oilfield or oilfield related. It would just bring a lot of people in. It would be a real economic boost.

“When you have a show like that, there are all kinds of economic spinoffs. We’re going to have to decide by the end of summer.”

PIPELINE NEWS September 2008

Job offer came with a roof and a story Â&#x201E; GeoďŹ&#x20AC; Lee Kisbeyâ&#x20AC;&#x201C; With a population of just over 100, the town of Kisbey oďŹ&#x20AC;ers little in the way of employee housing for its largest employer, CliďŹ&#x20AC; Nankivell Trucking.

The oilďŹ eld trucker is now run by Kalvin Nankivell, the president and spokesman for the companyâ&#x20AC;&#x2122;s operations and its 47 employees and 10 sub contractors on payroll. â&#x20AC;&#x153;Every little house has been bought up around here,â&#x20AC;? he said. â&#x20AC;&#x153;In town thereâ&#x20AC;&#x2122;s a low rental housing complex that Saskatchewan Housing has. They are trying to sell the four units and we have to put in a bid for them. â&#x20AC;&#x153;I really donâ&#x20AC;&#x2122;t want to own them myself. If I knew somebody was going to buy them, then rent them out that would be just great.â&#x20AC;?

The company has rented a few places that they rent back to employees like Jessy John Andre who was hired as a driver from Ontario in 2006 with the promise of accommodation for him and his family. â&#x20AC;&#x153;Kalvin found some living quarters for me. It was hard two years ago and now itâ&#x20AC;&#x2122;s even harder. I came at the right time,â&#x20AC;? he said.

When you hear Andreâ&#x20AC;&#x2122;s story itâ&#x20AC;&#x2122;s surprising that he accepted Kankivellâ&#x20AC;&#x2122;s oďŹ&#x20AC;er of employment and the opportunity to settle into the community.

Andre has an Ojibwa heritage and has spent his years oďŹ&#x20AC;-reserve with a suitcase packed. â&#x20AC;&#x153;My father worked as a miner so we travelled all over the place,â&#x20AC;? he said.

When he was 15, he was the proverbial kid who actually did run away from home to join the circus. â&#x20AC;&#x153;I was in the carnivals for ďŹ ve or six years,â&#x20AC;? he said. â&#x20AC;&#x153;I travelled all over Canada and back and forth. I hitchhiked. It was nothing for me to pack a bag and take oďŹ&#x20AC;. â&#x20AC;&#x153;Now, Iâ&#x20AC;&#x2122;ve ďŹ nally got myself together. Life is going good for me. I have a good job and Iâ&#x20AC;&#x2122;m making some good money and working for some good people. This is where itâ&#x20AC;&#x2122;s going to be.â&#x20AC;?

Nankivell Trucking has had some success recruiting other drivers like Andre from eastern Canada. â&#x20AC;&#x153;We had newspaper ads in Thunder Bay two years ago and in Nova Scotia,â&#x20AC;? said Nankivell. â&#x20AC;&#x153;We had people from Nova Scotia working for us already and now we have four people from Atikokan and one from Wawa.â&#x20AC;?

The Wawa hire was Andre who was a government snow plow driver clearing portions of the Trans Canada Highway around Lake Superior. He was open to alternate employment when snow clearing was privatized and wages cut.

â&#x20AC;&#x153;I heard about the job from a friend who was travelling on a plane with one of the guys that works here,â&#x20AC;? he said. That person was the Nova Scotia vacuum truck driver John Maher on a ďŹ&#x201A;ight home to visit family. ɸ Page B21

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PIPELINE NEWS September 2008

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B21

A roof, job, and a new life ɺ Page B19

Quick pick up Two pickers put this trailer into place on Aug. 19, just north of the Husky Energy Upgrader and along Highway 16.

Photo by Brian Zinchuk

“He (Maher) was explaining all the jobs out here and how much money they were making. So my friend came back and started snow plowing for me and then let me in on his little secret.”

Three months later, Andre and his family packed a U-Haul and out they came. Asked about his first reaction to Kisbey, Andre said, “It was a bit of a shock coming from a kind of

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busy place where they have stores and coming to Kisbey where there was nothing – just a bank and a post office and nobody walking around.”

Now that he’s been here a couple of years, he says he doesn’t want to leave. He started with Nankivell hauling oil and water and lucked out into an apprenticeship opportunity that began with a breakdown he freely recalled.

“One day I had something wrong with my truck and I came in and talked with the mechanics and asked them if they’d ever take on an apprentice. They said if they could find someone silly enough to work in the shop with them, they would hire them in a heartbeat. So I said you better get me out of that truck. Even to this day they still think I’m nuts.”

Andre has just completed his first year of company sponsored apprenticeship training as a heavy duty mechanic in Saskatoon.

When asked to comment on the difference plowing deep snow in Ontario and driving on wintery county roads around Kisbey, Andre said, “The difference is they don’t have snow here. The wind out here is something else. It actually blows the snow right off the road.”

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PIPELINE NEWS September 2008

The Roadrunner goes where others canâ&#x20AC;&#x2122;t 7KUHH FXEH IRXU ZKHHO GULYH YDF WUXFN RSHUDWHV LQ WLJKW VSRWV Gull Lake â&#x20AC;&#x201C; For many of us life is a progression and thatâ&#x20AC;&#x2122;s exactly how it was for Gull Lakeâ&#x20AC;&#x2122;s Kent Gibson. Roadrunner OilďŹ eld Services owner Kent Gibson had been working in agriculture during the â&#x20AC;&#x2122;80s but rough times shut the farm down. â&#x20AC;&#x153;I was born and raised on a farm and farmed up until 1989 and worked for Monsanto for a while

and then a business and opportunity came up in the anchor business and I jumped on it,â&#x20AC;? he says.

Gibson ran another rig anchoring company with a partner for four years and in 1998 he went on his own with Roadrunner OilďŹ eld Services. â&#x20AC;&#x153;We oďŹ&#x20AC;er rig anchoring and we do line locating and weâ&#x20AC;&#x2122;re fully certiďŹ ed in ground dis-

turbance work,â&#x20AC;? he says.

A vac truck was added in 2000. â&#x20AC;&#x153;Our vac truck is three cubes and capable of four-wheel drive so we can go where a lot of other guys canâ&#x20AC;&#x2122;t go,â&#x20AC;? he says.

Spending six ďŹ gures on acquiring a piece of equipment is a big decision for any businessman but Gibson says the vac truck gambit has paid oďŹ&#x20AC;.

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â&#x20AC;&#x153;We go in to coulees for clean up where big trucks canâ&#x20AC;&#x2122;t get in and we do a lot of small jobs in battery yards. We can get around where a lot of the bigger trucks canâ&#x20AC;&#x2122;t. We do a lot of work like that,â&#x20AC;? he explains.

And the vac truck business paid oďŹ&#x20AC; almost automatically with Gibson acquiring customers and jobs right from the get-go.

When it comes to rig anchoring, Gibson explains the rigs have guide lines, which are already attached. â&#x20AC;&#x153;We locate the lines in the ground and then we square it up and measure the four corners and then we ďŹ nd our way clear of ďŹ&#x201A;ow lines. Iâ&#x20AC;&#x2122;ve never tagged a ďŹ&#x201A;ow line in our history. We proceed to scar anchors which we screw into the ground

and run a 20,000 pound test and chart that and then move on to the next one and so on,â&#x20AC;? he says.

The roadrunner crew utilizes pipeline locators to locate ďŹ&#x201A;ow lines and the anchors are torqued in under hydraulic power. â&#x20AC;&#x153;We have a speciallydesigned truck for that which was made in Red Deer â&#x20AC;Ś the ďŹ rst one we ever used we made ourselves,â&#x20AC;? he says.

Gibson says heâ&#x20AC;&#x2122;s seen his share of peaks and valleys over his years in the patch. â&#x20AC;&#x153;We had it really good from 1995 to1998.

It was really busy. That was when oil was only $15 a barrel and then oil went up in price and activity started slowing down and leveled out in 2000,â&#x20AC;? he says.

In the last year Gibson says business has re-

ally started to boom once again. â&#x20AC;&#x153;Husky is going to drive business in Gull Lake region and then thereâ&#x20AC;&#x2122;s this peak in Shaunavon with all the horizontal work thatâ&#x20AC;&#x2122;s being done in that zone. That could develop quite a bit of the entire southwest,â&#x20AC;? he says.

Gibson still likes being in the trenches and along with his brother who works with him fulltimethey handle all of the work along with the occasional part-timer.

As far as the future is concerned Gibson is prepared for more growth. â&#x20AC;&#x153;Companies have to maintain production and the world is going to demand the oil. The Middle East is becoming so unstable but the oil is here and theyâ&#x20AC;&#x2122;ve proven that,â&#x20AC;? he says.

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PIPELINE NEWS September 2008

B23

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Swift Current - Jim Bedford, regional manager of southern division for MidďŹ eld Supply ULC, says the company is a major oilďŹ eld and industrial supply chain oďŹ&#x20AC;ering equipment and materials for all sectors of the industry from casing and tubing to bottom-hole pumps, pumping units as well as pipe, valves and ďŹ ttings. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re a distributor for oil lift drive heads and europump progressive cavity pumps in which

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we supply and install and service for the end user,â&#x20AC;? says Bedford.

The pump is an artiďŹ cial lift system for bringing the oil back to the surface. â&#x20AC;&#x153;The drive head would be a surface unit and thereâ&#x20AC;&#x2122;s a string of sucker rods hooked onto the rotor of the cavity pump. When it spins, the drive head turns the

rotor, bringing the oil up the tubing,â&#x20AC;? Bedford explains. â&#x20AC;&#x153;Basically the oil lift drive is like a pump jack for the progressive cavity pump,â&#x20AC;? he says.

MidďŹ eld is also a distributor for the conventional pump jack under the brand name Sentry.

In Saskatchewan, MidďŹ eld has outlets in Gull Lake, Swift Cur-

rent, Kyle, Consul, Shaunavon, Weyburn and Carlyle. â&#x20AC;&#x153;Iâ&#x20AC;&#x2122;d say throughout the province we probably have about 20 employees.

At Kyle and Consul we operate under an agent,â&#x20AC;? says Bedford. â&#x20AC;&#x153;We could use more though. Itâ&#x20AC;&#x2122;s always hard to ďŹ nd good people,â&#x20AC;? he says. ɸ Page B24

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PIPELINE NEWS September 2008

Veterans glass half full

Desk and Derrick Club

ÉşPage B23 Bedford started in the patch back in back in 1979 with a company called Continental Emsco, in Virden Manitoba. â&#x20AC;&#x153;Back in the early â&#x20AC;&#x2122;70s there were over 1,000 producing oil wells in that region and itâ&#x20AC;&#x2122;s probably double that now,â&#x20AC;? he says.

The veteran of the energy sector took a transfer to Taber, Alta. in 1985 and in 1993 was approached by Dan Endersby, the original owner of MidďŹ eld. â&#x20AC;&#x153;He asked myself and Ken Fritz to open a store in Taber for him which we did,â&#x20AC;? says Bedford. â&#x20AC;&#x153;Iâ&#x20AC;&#x2122;ve been with MidďŹ eld ever since.â&#x20AC;?

ReďŹ&#x201A;ecting over his 30-year history in the patch, Bedford says the â&#x20AC;&#x2122;70s were fairly busy years. â&#x20AC;&#x153;The price of oil was not $140 a barrel then but the services and materials were not priced that way either. Everything was priced relative to the market. In 1980s we had a slump. Drilling activity decreased and then in the late 1990s it rebounded again. Usually thereâ&#x20AC;&#x2122;s a ďŹ ve-year cycle in the oil patch. Over the last ďŹ ve or six years weâ&#x20AC;&#x2122;ve experienced excellent growth in both the drilling and the service industry,â&#x20AC;? he says.

In the future, Bedford expects to see continued growth. â&#x20AC;&#x153;Over the next ďŹ ve-to-10 years there will be continued growth of both the upstream and downstream markets in both Canada and the US.â&#x20AC;?

The Desk and Derrick Club of Southeast Saskatchewan on a tour of a drilling rig in September 2007.

The purpose of the Association is to promote the education and professional development of individuals employed in or aďŹ&#x192;liated with the petroleum, energy and allied industries.

The Association of Desk and Derrick Clubs celebrates 56 years of service to members and the energy industry. A non-proďŹ t organization for almost 2,500 individuals employed in or aďŹ&#x192;liated with the petroleum, energy and allied industries, there are 59 clubs in seven regions throughout the United States and Canada.

The Desk and Derrick Club of Southeast Saskatchewan meets on the 3rd Monday of each month. We tour a business related to the petroleum industry and then have a quick meeting. Since January 2008, the club has toured Steelman Gas Plant, Packerâ&#x20AC;&#x2122;s Plus, Carson Welding and Maintenance, Weatherford Wireline and Sanjel.

Our Motto is â&#x20AC;&#x153;Greater Knowledge, Greater Serviceâ&#x20AC;?.

If you are employed in or aďŹ&#x192;liated with the petroleum, energy or allied industries and you are interested in joining the Desk and Derrick Club, please call Ellen Phillips at 634-6494 to make arrangements to attend our September tour and meeting.

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PIPELINE NEWS September 2008

B25

Nankivell Trucking shifts into high gear Â&#x201E; GeoďŹ&#x20AC; Lee Kisbeyâ&#x20AC;&#x201C; What do you do when you retire from your own trucking company? If you are CliďŹ&#x20AC; Nankivell, you turn the business over to your son Kalvin, keep in the loop and ďŹ nd a hobby. Heâ&#x20AC;&#x2122;s done that and found a new hobby towing a 1929 Hudson Landau sedan to show and shines

mostly crude oil and water for oil companies in around Kisbey with deliveries to batteries, salt water disposals sites and to shipping points in southeast Saskatchewan and Manitoba. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re running about 30 trucks a day,â&#x20AC;? says Kalvin whose job is to look after the shops, the trucks and set the

Mechanic Warren McArthur works at installing a belly hose on a Nankivell pump unit.

everywhere.

The carâ&#x20AC;&#x2122;s real worth is its value as conversation starter with some of talk focused on his reaction to the level of activity in the Bakken play and the impact on CliďŹ&#x20AC; Nankivell Trucking. â&#x20AC;&#x153;It just blew me out of the water. Itâ&#x20AC;&#x2122;s quite exciting,â&#x20AC;? he said. â&#x20AC;&#x153;Thereâ&#x20AC;&#x2122;s not as much competition as there used to be.

Thereâ&#x20AC;&#x2122;s lot of work to go around. We turned down more work last year because we couldnâ&#x20AC;&#x2122;t handle the business at a full scale.â&#x20AC;?

Nankivell hauls

rates for hauling among other tasks. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re very busy.

Weâ&#x20AC;&#x2122;ve doubled the size of our company in the last two years. Most of the action is right around the Kisbey area so we donâ&#x20AC;&#x2122;t have to drive very far.â&#x20AC;?

Nankivellâ&#x20AC;&#x2122;s ďŹ&#x201A;eet includes triple axle pump units, triple axle semis, a few trains (seven axles) body style trucks (trucks with a tank on the back), pressure tanks and vacuum trucks for cleaning up spills and emptying heavy sludge out of tanks. â&#x20AC;&#x153;The only thing we donâ&#x20AC;&#x2122;t have is a hot oil unit,â&#x20AC;? said Kalvin who is in the process of building a new shop â&#x20AC;&#x201C; the companyâ&#x20AC;&#x2122;s fourth â&#x20AC;&#x201C; to store up to 10 trucks especially during the winter when brakes and salt water loads can freeze. Nankivell Trucking has ďŹ ve mechanics on staďŹ&#x20AC; and they are all busy as the weather and roads take a toll. â&#x20AC;&#x153;Thereâ&#x20AC;&#x2122;s so much

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traďŹ&#x192;c on these small roads since the Bakken,â&#x20AC;? said Kalvin. â&#x20AC;&#x153;There are roads that hardly saw one vehicle a day that Kalvin Nankivell is president of Cliff Nankivell have 50 vehicles a day on Trucking that his dad Cliff bought in 1979. The them now.

Kisbey-based company has over 30 trucks on the ɸ Page B26 road including this pressure truck.

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B26

PIPELINE NEWS September 2008

Crude and water hauler services Kisbey area

Cliff Nankivell and his son Kalvin pose with Cliffâ&#x20AC;&#x2122;s 1929 Hudson Landau sedan that he tours to shows as a retirement hobby.

Éş Page B25 The roads are getting pounded. Itâ&#x20AC;&#x2122;s tough on vehicles. We go through a lot of springs and airbags. It takes a lot of work.â&#x20AC;?

Safety issues also take up more time, leading Nankivell Trucking to hire a full time safety coordinator. The day of this interview on a rainy morning, a new driver was being put through his ďŹ rst week of orientation driving the back roads with an experienced hand. â&#x20AC;&#x153;Our safety coordinator will bring him up to speed on the safety orientation for diďŹ&#x20AC;erent companies that we deal with,â&#x20AC;? said Kalvin. â&#x20AC;&#x153;It takes a special bunch of guys to drive. In the winter, the roads arenâ&#x20AC;&#x2122;t as clear as a table. Sometimes theyâ&#x20AC;&#x2122;re plugged or muddy like it is this morning. It takes some ďŹ nesse. The biggest challenge for me is keeping things running smoothly. It can be dangerous if people get carried away and their hours get long and people get tired. Safety is a big factor.â&#x20AC;?

Nankivell also safety checks and repairs its own vehicles although Kalvin says these are getting more

computerized with emission controls that are not user-friendly. â&#x20AC;&#x153;If you have any major electrical stuďŹ&#x20AC; go on them, you have to them to the city.â&#x20AC;?

Kisbey has a population of about 100 but doing business is not a problem.

Parts are delivered daily by Fullerâ&#x20AC;&#x2122;s Bus Service in Alida and sales suppliers drop by once or twice a week. High speed Internet came to town two years ago. â&#x20AC;&#x153;Weather is a big factor,â&#x20AC;? said Kalvin. â&#x20AC;&#x153;Today it rained and there are a couple of places we canâ&#x20AC;&#x2122;t get into. In the winter there are storms but a lot of wells have to be serviced so every day you have to make an eďŹ&#x20AC;ort to get them otherwise they will overďŹ&#x201A;ow and you will have a hazard.â&#x20AC;?

Times were slower and simpler back in 1969 when CliďŹ&#x20AC; moved his family from CarnduďŹ&#x20AC; to take over the truck push job for R.E. Line in Kisbey. â&#x20AC;&#x153;When Richard Line retired he set me up in business here and I took over with my son Kalvin in

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1979 and progressed to what we are today,â&#x20AC;? said CliďŹ&#x20AC;. â&#x20AC;&#x153;When I stepped down Kalvin took over as president and my daughter Claudia is second vice-president.

We hired a number of staďŹ&#x20AC; since then.â&#x20AC;?

Asked what he thinks of the Bakken play, CliďŹ&#x20AC; said, â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s mind boggling. I know itâ&#x20AC;&#x2122;s going to be around for a long time and weâ&#x20AC;&#x2122;re trying to gear up for that. Weâ&#x20AC;&#x2122;ve bought some good second hand equipment and another thing is getting good employees who want to be part of our business. â&#x20AC;&#x153;I know I could never handle it today because of the stress and the safety part of it. Today, Iâ&#x20AC;&#x2122;m a gopher.

I go for parts at any given time. I enjoy doing that.

It keeps me in line with the business and gives me a handle on knowing whatâ&#x20AC;&#x2122;s going on. â&#x20AC;&#x153;Other than that I doing a lot of holiday travelling with an antique car that I picked up a year ago. It has opened up a whole new world as a senior for me.

Itâ&#x20AC;&#x2122;s a lot of fun and you meet a lot of nice people and create conversation.â&#x20AC;?

CliďŹ&#x20AC; has also spearheaded company support of 4-H clubs in Estevan and Weyburn for over 20 years. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s something for kids to be proud of and I enjoy seeing them get a good price for their steers,â&#x20AC;? he said.

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PIPELINE NEWS September 2008

Spearingâ&#x20AC;&#x2122;s oil truck universe expanding Oxbowâ&#x20AC;&#x201C; Christmas canâ&#x20AC;&#x2122;t come early enough for oďŹ&#x192;ce staďŹ&#x20AC; at Spearing Service Ltd. that will move into new quarters then as new hires and demand for Spearingâ&#x20AC;&#x2122;s trucking services in the oilďŹ eld have reached the breaking point.

Counting employees, lease operators and their drivers stationed at shops in Carlyle, Pipestone Manitoba and the head oďŹ&#x192;ce in Oxbow, Spearing has a payroll of about 180 employees. On any given day, more than 100 trucks are dispatched into the oilďŹ elds of Manitoba, Saskatchewan, Alberta and North Dakota and Montana. â&#x20AC;&#x153;In the last few years, business has really boomed,â&#x20AC;? said operations manager Ken McClement who is a recent new hire himself. â&#x20AC;&#x153;In the last eight months, itâ&#x20AC;&#x2122;s doubled to what we were doing before. The number of our employees is up 150 per cent in the past two years and itâ&#x20AC;&#x2122;s the same with our equipment. Itâ&#x20AC;&#x2122;s mostly due to the Bakken ďŹ eld and the price of oil that has made a big diďŹ&#x20AC;erence in the economy of south-

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Spearing services is building a new ofĂ&#x20AC;ce for its growing administrative staff. The current ofĂ&#x20AC;ce will reworked into a dispatch ofĂ&#x20AC;ce. Pictured are Ken McClement, Spearingâ&#x20AC;&#x2122;s operations manager and contractor Darren Barrie with DKB Construction.

east Saskatchewan.â&#x20AC;?

Growth has also prompted Spearing to build two new 80 by 140 shops and oďŹ&#x192;ces near its Alameda property west of Oxbow and in busy Carlyle across from its current shop.

B27

The day that Pipeline News showed up, ďŹ&#x201A;eet manager Gary Cheney was leading the rigging up a new tractor unit and a new tri-axle trailer to make them oil-ďŹ eld ready. ɸ Page B30

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B28

PIPELINE NEWS September 2008

Bakken fueling Petrobank’s growth Calgary – Bakken production helped to give Petrobank Energy and Resources Ltd. a record second quarter 2008 financial and operating results.

Petrobank’s president and CEO John Wright announced an operating netback of $88.83 boe in the company’s Canadian business unit, a 113 per cent increase, compared to the same period for 2007, and record netbacks for its Latin American unit.

“These operating netbacks are some of the best in class,” said Wright during a Q2 conference call.

“Combined Q2 production from our Canadian and Latin America business units represent an increase of 244 per cent year over year to 23,856 boepd and has now increased (as of Aug. 11) to over 34,500

boepd.”

The quarter’s production was dominated by13,214 boepd of high netback production from the Bakken formation in southeast Saskatchewan.

The Bakken formation produces light oil in close proximity to Canada’s main oil pipelines.

Operating netbacks are high, particularly considering the current oil price environment, the attractive Saskatchewan royalty regime, and relatively low operating costs.

The operating netback for Petrobank’s operated Bakken oil production during the second quarter of 2008 was $100.93 per barrel, when oil was US$123.80 per barrel.

The increase production, namely from the Bakken, spiked cash flow from operations by 724

per cent to $177.9 million in the second quarter of 2008, compared to $21.6 million in the second quarter of 2007.

A news release noted Petrobank has an aggressive Bakken drilling and facility program.

Petrobank’s drilling inventory at the end of June was 577 net locations and is on track to drill 154 net wells in the Bakken in 2008 that will add significant new production and reserves.

In the first six months of the year, 74.8 net Bakken wells were drilled, although not all wells had been completed and put on production by the end of the second quarter.

The drilling program in the Bakken is expected to make Petrobank the most active operator in the play. To achieve its goal, Petrobank has eight oper-

ating rigs in the play.

In August 2008, the company also acquired an additional seven sections of Bakken mineral rights, further increasing its Bakken land base to 221 sections (141,000 net acres) and increasing its inventory of drilling locations by a further 28 locations.

Petrobank is building centralized facilities to capture the additional value from associated gas and natural gas liquids production and to maintain low operating costs for its Bakken production.

Construction has begun on a new satellite facility in the Creelman area which will separate water for local disposal and then move all oil, gas and natural gas liquid production from the Creelman area through a pipeline to Petrobank’s main Midale

facility.

The Creelman facility will be fully operational by the beginning of September.

Petrobank will also connect its Viewfield facility pipeline to its Midale plant by the end of September. In addition, a planned Freestone oil battery and gas conservation system will have a pipeline connection to Petrobank’s main Midale facility for natural gas liquids extraction and gas processing.

The Freestone facility is expected to be completed by the end of the October and will likely also gather and process gas for other third parties.

These infrastructure enhancements will allow Petrobank to maximize liquids-rich natural gas production and reserves from the Bakken play

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while significantly reducing operating costs and improving overall project economics.

“We have a strong platform for continued growth,“said Wright.“Our Bakken assets will continue to positively impact our production reserve based for years to come.

“Complimenting our success in the Bakken, Petrobank is now well positioned on the developing northeast British Columbia gas resource plays in the Montney formation and in the Evie and Muskwa shales of the Horn River Basin.”

In 2007, Petrobank acquired a township of land (36 square miles or 23,040 acres) with oil sands potential at Sutton Creek, Saskatchewan. This new land position is located within new and promising oil sands lands. A 45 km 2D seismic survey is currently underway over these lands and Petrobank expects to conduct an exploration drilling program on the leases this winter.

In addition, the company has acquired 25 sections of land on resource plays in the Muskwa and Evie shales of the Horn River Basin in northeast British Columbia. The first vertical evaluation well is planned for early 2009.

“Our exploration success at Cornwall will provide additional near term impacted growth and our newly acquired positions in the Montney Muskwa and Evie formations in northeast BC will provide a platform for significant long term growth in our production and reserve base,” said Wright.

At its Whitesands operations in Alberta, Petrobank drilled, completed and placed on production the world’s first THAI™/CAPRI™ well which incorporated its revised downhole completion design.

Whitesands Insitu Partnership, a partnership between Petrobank and its wholly-owned subsidiary. Whitesands Insitu Inc., owns 75 net sections of oil sands leases in Alberta, 36 sections of oil sands licenses in Saskatchewan and operates the Whitesands project which is field-demonstrating Petrobank’s patented THAI heavy oil recovery process.

PIPELINE NEWS September 2008

B29

Environment pros respond to spill sites Alidaâ&#x20AC;&#x201C; When oil spills occur more than a mop and pail are needed.

Thatâ&#x20AC;&#x2122;s why oil companies rely on the environmental expertise of Three Star Environmental Corp. in Alida.

Three Star consultants respond to surface spills, ďŹ&#x201A;ow line breaks, tank overďŹ&#x201A;ows or to decommission buried ďŹ&#x201A;are pits for oil company clients. â&#x20AC;&#x153;We do the initial site assessment and develop a remediation plan for the oil company that

usually contracts us to supervise and document the site,â&#x20AC;? said Dean HoďŹ&#x20AC;man, Three Starâ&#x20AC;&#x2122;s project coordinator. â&#x20AC;&#x153;We are just a consultant.â&#x20AC;?

Spills are often reported to oil companies by landowners who notice poor regrowth on reclaimed land or by battery operators. Thatâ&#x20AC;&#x2122;s when a Three Star consultant like Danyelle Thompson, an environmental scientist is called out. â&#x20AC;&#x153;For the most part on lease spills, oil com-

panies will clean them termine what the con- pose to clean it. Usually, up themselves,â&#x20AC;? said tamination is, the extent the company approves Thompson. â&#x20AC;&#x153;Once they of it, and how we pro- exactly what we want to are oďŹ&#x20AC; lease or if there is a huge amount of contamination thatâ&#x20AC;&#x2122;s when we get involved.â&#x20AC;?

Thompson took Pipelines News on a tour of three sites to demonstrate the clean-up process. The ďŹ rst location near Nottingham was an old battery site that contaminated the soil with Derek Sibley salt water. â&#x20AC;&#x153;We come in and do 306-485-8479 an initial site assessment,â&#x20AC;? said Thompson. â&#x20AC;&#x153;We de-

do and we come out and mitigate and clean it up. ɸ Page B31

David Townsend 306-485-8489 P.O. Box 775 Oxbow, Sask.

S0C 2B0

Bruce Bell with Classic Vacuum Truck Ltd. uses a vacuum to clean up oil spilled on the ground from a tank overĂ ow in the Carnduff oilĂ&#x20AC;eld. Another worker steam cleaned the exterior of the battery.

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B30

PIPELINE NEWS September 2008

Spearing builds two 80x140 shops Éş Page B27 â&#x20AC;&#x153;We put all of the safety systems on them for the transport of dangerous goods,â&#x20AC;? he said.

The new trucks bring to 20, the number of new

vehicles the company has purchased since last spring, and another 40 trailers are on the way.

Spearing has ordered some 50 frac ďŹ&#x201A;uid tanks and two frac ďŹ&#x201A;uids heat-

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ers used in the Bakken.

Spearing is an oilďŹ eld tank truck and specialty transport equipment company involved in moving the emulsions, the salt water and the crude oils from oilďŹ eld facilities and ďŹ&#x201A;uids out to rig sites. â&#x20AC;&#x153;A lot of what we do is to supply an immediate pipeline for the new wells to get to terminals,â&#x20AC;? said McClement. â&#x20AC;&#x153;Our specialty is hauling crude oil. The trucks are an immediate pipeline.

As soon as the well is in production, we can move the ďŹ&#x201A;uid before the ďŹ&#x201A;ow lines get there and before the pipeline expands and even before drilling.

Trucking is a big part of it. â&#x20AC;&#x153;We supply the ďŹ&#x201A;uids to the drilling rigs including the frac ďŹ&#x201A;uids. Without trucks a lot of that canâ&#x20AC;&#x2122;t happen.

As soon as the well is in place, we are there the

Spearing Service continues to take delivery of new trucks as oilĂ&#x20AC;eld activity expands. Operations manager Ken McClement explains this is a Heil tri-axle trailer for hauling oil or water. Mechanics are also installing auto greasing systems on all of its trucks and trailers.

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next day to start moving the saleable oil.â&#x20AC;?

Spearingâ&#x20AC;&#x2122;s ďŹ&#x201A;eet includes bulk tank trucks, winch and pressure trucks, hot oil trucks, quads, tri-axles and vacuum and steam trucks among others.

Asked why they have so many types of trucks, McClement said, â&#x20AC;&#x153;When you get a contract with a big company you can do all of their trucking without them looking for someone else. â&#x20AC;&#x153;With all the contacts we have in the oilďŹ eld, they are saying there is still eight years of growth, but we wonâ&#x20AC;&#x2122;t be able to expand as much as we have. Thereâ&#x20AC;&#x2122;s a certain amount of overlap by the time the ďŹ&#x201A;ow lines and pipelines are put into place. Thereâ&#x20AC;&#x2122;s only so much trucking involved in between that

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time.â&#x20AC;?

Spearing was sold in March, 2006 to Mullen Group Trust as Spearing Services LP, and Don Spearing, the limited partner president and CEO says the sale was well timed. â&#x20AC;&#x153;It seemed like the right thing to do at the time and it gave us a lot more money to invest. Then they found the Bakken zone and that helped a lot.â&#x20AC;?

On the down side, rapid growth has made recruiting and housing new employees a daily challenge for Len Mostoway who manages the bulk of Spearingâ&#x20AC;&#x2122;s recruitment and safety programs.

The company rents eight motel rooms in Carlyle to new hires and rents four suites in Manor to workers. Spearing also ďŹ nds housing in Oxbow to rent back to new employees. â&#x20AC;&#x153;We sign one year agreements with landlords and we collect the

rent. If you rent a house to us you know you are going to get paid,â&#x20AC;? said Mostoway. â&#x20AC;&#x153;We have a big economic impact on the communities where we work. We have about 27 lease operators mostly out of Carlyle and Stoughton. They are buying food there and getting their trucks repaired there. We donâ&#x20AC;&#x2122;t have enough capabilities to repair their trucks, so they will buy tires from someone in Carlyle or get their maintenance from them.â&#x20AC;?

The Mullen Group assists with recruitment for all of its divisions while Mostoway says Spearing has found hiring success using the Saskjobs.ca web site. â&#x20AC;&#x153;Hiring is ongoing.

Weâ&#x20AC;&#x2122;re always searchingâ&#x20AC;? he said. â&#x20AC;&#x153;Word of mouth is good too. Oxbow is good place to live. I just wish we had more apartments we can put people into.â&#x20AC;?

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PIPELINE NEWS September 2008

B31

Scientists keeping old lease sites clean Éş Page B29 â&#x20AC;&#x153;On this site, we have numerous spills, we think.

We have salt water and hydrocarbons and we are in the process of mitigating the salt water out with cribs and tile systems to pump out of the ground water. The hydro-

carbons we are excavating and hauling to a licensed disposal.â&#x20AC;?

Site two in the CarnduďŹ&#x20AC; oilďŹ eld was the scene of a tank overďŹ&#x201A;ow caused when an alarm failed to trigger. A crew from Classic Vacuum Truck Ltd. was busy vacuuming surface oil and steam cleaning the exterior of the battery when we arrived. â&#x20AC;&#x153;Our role is to supervise the clean-up and to ensure that it meets SPIGEC criteria (Saskatchewan Petroleum Industry/ Government Environment Committee),â&#x20AC;? said Thompson. â&#x20AC;&#x153;After crews vacuum the soil, they will scoop up some of the contaminated material. Lots of it gets hauled away to the licensed disposal site. The stuďŹ&#x20AC; they sucked up will also be hauled away. They will re-gravel where it needs to be and we continue from there.â&#x20AC;?

Environmental scientist Danyelle Thompson from Three Star EnThe third site, the scene of vironmental Corp. reads an electrical conductivity probe to deterspill from a ďŹ&#x201A;ow line break was mine if ground water at an old battery site in the Nottingham area supervised by consultant Richard is still contaminated.

Elson who eagerly explained his role as soil excavation work was under way. â&#x20AC;&#x153;Iâ&#x20AC;&#x2122;m the environmental consultant on site so Iâ&#x20AC;&#x2122;m testing as weâ&#x20AC;&#x2122;re digging to make sure we are getting the contamination our and not the good clean soil,â&#x20AC;? he said. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s also my job to manifest the trucks, take soil samples, send them to the lab and organize the whole site.â&#x20AC;?

Elson said the spill came to light when oil and salt water came to the surface. â&#x20AC;&#x153;This is a fairly large spill. Weâ&#x20AC;&#x2122;ve been here four a couple of weeks. Whenever it happens, you get called out to work.â&#x20AC;?

Three Star provides a full range of services including pre-site assessments, environmental monitoring, drill waste management and water well servicing among others.

When asked why more companies are contracting environmental consultants, Thompson said, â&#x20AC;&#x153;It saves them money to do it right the ďŹ rst time around.â&#x20AC;?

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PIPELINE NEWS Saskatchewanâ&#x20AC;&#x2122;s Petroleum Monthly

C-Section September 2008

Weyburn-Estevan land sales add to record total in 2008 Regina â&#x20AC;&#x201C;Call it the silver medal of land sales. The August sale of Crown petroleum and natural gas rights in Saskatchewan was the second highest sale on record just missing the record set in April.

The August sale raised an incredible $242.7 million in revenue for the province, bringing the year-todate revenue figure from land sales to a record $848.1 million, with two sales left in the year.

The Weyburn-Estevan area once again led the way with sales of $212.3 million, reflecting the unprecedented interest in the red-hot Bakken play.

The KindersleyKerrobert area was next at $14.3 million, followed by the Lloydminster area at $8.7 million and the Swift Current area at $7.4 million. â&#x20AC;&#x153;The oil and gas industries clearly like what is happening in Saskatchewan, â&#x20AC;&#x153;Energy and Resources Minister Bill Boyd said. â&#x20AC;&#x153;There is appreciation of our great business climate and the opportunities for investment that climate affords. And industries particularly like our world-class resources, including the hottest oil play in North America. â&#x20AC;&#x153;This confidence by the industry not only means more revenues to

the province right now, but it also signals much more economic activity in future and more jobs and opportunities for Saskatchewan people,â&#x20AC;? added Boyd.

The August sale featured 43 explora-

tion licences that sold for $127.6 million and 425 lease parcels that brought in $115.1 million.

The highest price paid for a single parcel was $24.2 million

by Windfall Resources

Ltd. that bought purchased a 1,211- hectare exploration licence of deeper rights, located beneath the Warmley Alida Beds Pool, near Stoughton.

The August sale set a new record for

the price paid on a per-hectare basis at $44,201.

LandSolutions Inc. which plans to open a new office in Lampman, purchased this 130-hectare lease parcel of deeper rights just southwest of Kis-

bey for over $5.7 million.

The next sale of Crown petroleum and natural gas dispositions will be October 6. Oil sands exploration licences will also be offered at this sale.

Winds of change blowing CarnduďŹ&#x20AC; â&#x20AC;&#x201C;Trucking could be a breeze in a few years for Dennis Day, the general manager of FAST Trucking Service Ltd. in CarnduďŹ&#x20AC;. He has plans to start a wind farm in the area based on his experience and interest in a wind generator he installed on site in 1997. It produces 30 percent of his companyâ&#x20AC;&#x2122;s power needs.

For now though, he and his 130 FAST employees are caught up in a whirlwind of orders for oil rig moves throughout the Bakken play in southeast Saskatchewan and parts of Manitoba. â&#x20AC;&#x153;A year ago there were 50 rigs working and now thereâ&#x20AC;&#x2122;s more than 70,â&#x20AC;? said Day. â&#x20AC;&#x153;There are more oil companies looking for oil down in this corner so we are getting busier.

We have to add more equipment to the ďŹ&#x201A;eet and hire some more personnel to keep the rigs moving.â&#x20AC;?

It can take anywhere from eight to 30 trucks to move a rig and with the busy Bakken play, FAST coordinates as a many as 12 rig moves a day.

Darwin Duncombe shares the dispatch role with Dennisâ&#x20AC;&#x2122; brother Larry and plans and plots each rig move on a GPS system and provides lease direction to each truck push.

At a rig lease set up for Trinidad Drilling Ltd. near Frobisher, truck push Rick Renwick was busy ďŹ nding the best access route for the FAST convoy of trucks carrying the rig derrick and lease equipment. He also talked with drivers of bed trucks, gin trucks, winch trucks and pickers to schedule their arrival. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s my job to organize the rig set up and take it down,â&#x20AC;? he said. â&#x20AC;&#x153;I try to keep all the trucks in the right order â&#x20AC;&#x201C; put the matting down, spot the sub and the derrick and all the buildings that go in around it. Some rigs can take a couple of hours

to six or seven hours. It depends on conditions.

We came oďŹ&#x20AC; a pretty greasy lease, but this is a real nice lease to work on, so it will go together pretty quick.â&#x20AC;?

The bed truck is the work horse of FASTâ&#x20AC;&#x2122;s rig moving ďŹ&#x201A;eet of more than 100 trucks and specialized vehicles FAST operates through its sister companies and 250 corporate employees counting those from Day Construction, General Well Servicing, Competition Transport Ltd., Samâ&#x20AC;&#x2122;s Trucking Estvan Trucking Ltd., and Fontanaâ&#x20AC;&#x2122;s Trucking in Virden Manitoba.

FASTâ&#x20AC;&#x2122;s vehicles are maintained inside the companyâ&#x20AC;&#x2122;s 41,000 sq. ft. shop. â&#x20AC;&#x153;We make all of our own driveshafts, rebuild all of our rear ends, transmissions, engines and complete our own safety checks. Everything we need, we build right here,â&#x20AC;? said Day. FAST Trucking was started 51 years ago when ɸ Page C3

FAST Truckingâ&#x20AC;&#x2122;s general manager Dennis Day acquired a wind generator to power his shop in Carnduff in 1997 and has plans to create a wind farm in the coming years. He is monitoring three sites for wind close to Carnduff.

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C2

PIPELINE NEWS September 2008

Classic Steaming - Peterbilt’s project Estevan– Canada’s largest steam truck rolled out the Frontier Peterbilt shop in Estevan July 18 and into the history books. Its first job was cleaning tanks for Enbridge Inc. The specially modified 26-foot van box is the product of Classic Steaming Inc., a new rolling steamer with cool oilfield graphics and owned by Tim Erickson who continues to drive for Classic Vacuum Truck Ltd. from Alida. Vacuuming and steam go hand in hand. Steamers clean oil, wax and salt water from tanks and batteries.

Everybody wanted us to build a steam truck,” said Erickson. “We wanted to build a steamer that exceeded our expectations. We are known for our good equipment. I wanted everyone to know when they picked up the phone that we had the whole works.”

That van box fitted to the body of a Peterbilt truck was designed to house a 3.5 million BTU heater, a 1,750 gallon water tank, a pump and a high pressure system for cleaning batteries safely. Its deployment is timely as new regulations require tanks and batteries to be inspected every two years.

“This is the Cadillac of what they need in the oilpatch,”said Greg Johnstone who sold and helped deTim Erickson and his wife Tania are proud owners of Classic Steaming Inc. sign the basic vehicle. “With all the that will be used along with Classic Vacuum Trucks Ltd. in Alida for battery concerns about OH & S (occupaand tank cleaning. Final adjustments were made at the Peterbilt shop in Estevan where the vehicle was purchased. tional health and safety) and the safety of men in confined spaces, this cuts a lot of that out,” he said.

“It makes for a truck that is way more efficient for the dollars per hours comparative and a lot safer Supply & Services Ltd. for the men working around it.”

COMPLETE ROD PUMPING, SUPPLY, OPTIMIZATION, DESIGN & FIELD SERVICES The truck’s steaming system Tim Erickson designed the van box of has a tank gun unit that fits in the the steam to house this 3.5 million BTU centre of a tank or battery con- Steel and Fiberglass Sucker Rod Sales burner. He plans to install a chimney to nected to a 300-foot long hydraulic vent exhaust. The steamer cuts the time - Dynomometers hose. The gun shoots out 38 gallons needed for cleaning tanks and batteries a minute.

- Fluid Levels to a quarter of that required by manual “The main advantage is that cleaning. The system is also safer.

- Vertical and Horizontal Well Rod Design a man doesn’t have to go in there and have the risk of the gas and an - SAM Pump-off Controllers explosion,” said Erickson. “The door can stay closed on the tank. The tank will be - Wermac VFD Sales sealed and a steam hose will go into a three inch diameter valve in the top and away it goes. It does everything on its own. website: www.pentarods.com BUS: (306) 634-7399 “Previously, you sent a man in with a pressure hose and he’d stand in there for lhaukeness@pentarods.com FAX: (306) 634-6989 four or five hours in all that heat. I’ve had guys pass out coming out of the tank bemekkebus@pentarods.com 58 Devonian Street cause of the heat. Compared to the four or five hours for a man, this unit will take jistace@pentarods.com P.O. Box 667 ysever@pentarods.com one hour to an hour and a half per tank. We can cut our time to a quarter with this Estevan, Saskatchewan S4A 2A6 unit.

“You can pump in heat up to the boiling point so you can melt the whole walls down and have it perfectly clean. Also there are no chemicals. It’s just steam.”

Mike Smeltzer, Peterbilt’s general manager said the project was born when Erickson approached Johnstone with his specification days after Peterbilt opened #1 Frontier Street | Highway 39 East at the Shand Road | Estevan, Sk. its sales and service centre in February. “Our Greg Phone: (306) 636-6320 Fax (306) 636-6321 Open Monday to Saturday 7:30am - 6:00pm worked with Tim on designing a more updated steam truck for application in Tim’s business,” said Smeltzer.

“Tim wanted a Peterbilt chassis to go with the box that We Are SGI Certified houses the steamer.” It took four design revisions to get to perform all of your it right while meeting roadworthy requirements.

SAFETY INSPECTIONS Six weeks after the order was placed, the truck, the box and steamer components arrived in Estevan for assembly. The truck, a Peterbilt 389 model powered by Parts & Service for a C-12 Caterpillar engine was delivered from DenALL MAKES ton Texas. The box was completed in Edmonton and 24 Hour Emergency comes with required safety steps.

The pumps originated from Winnipeg and the Service & Parts water tank arrived from Saskatoon. Kendall’s Auto Electric provided the water works and Wil-Tech Industries Ltd. assembled the hydraulics. Stellar Graphics Ltd. designed the distinctive oilpatch panels on the sides of the box.

“These local companies came through in a big way,” said Johnstone. “Our time frame was short.”

Scott Sellstead, Peterbilt’s lead hand, directed the final installation of a roto deco valve and hooking up to the power take-off. “The rest of the modifications were done at different shops,” he said. “That BTU heater is one of the largest I have ever heard of.”

The truck is outfitted with a small oil tank to run the hydraulic pumps. The heater is powered by diesel with an electric ignition.

Penta Completions

Frontier Peterbilt Sales Ltd.

1-888-345-8070

Congratulations to Tim Erickson of Classic Steaming Ltd.

On your recent expansion and the purchase of your new Peterbilt model 367 Truck.

(306) 636-6320

%NCUU 2C[U

PIPELINE NEWS September 2008

C3

Power a breeze at Fast Trucking in New Zealand skydiving, hang gliding and bungee jumping. â&#x20AC;&#x153;I like the air,â&#x20AC;? he said. â&#x20AC;&#x153;When youâ&#x20AC;&#x2122;re moving rigs, lots of times, youâ&#x20AC;&#x2122;re oďŹ&#x20AC; the ground and weâ&#x20AC;&#x2122;re kind of raised like that.â&#x20AC;?

In fact, Day says the

idea for the wind generator came from Tony who worked on rigs in Alberta and always found it windy up on the derrick. â&#x20AC;&#x153;He wanted to try a wind mill so I sourced one out in Alberta. Itâ&#x20AC;&#x2122;s a used one made in Germany and I brought

it here and set it up.â&#x20AC;?

The wind-o-matic as its called, produces 66 kilowatts of power that FAST sells to Sask Power when the shop is closed for the day. FAST was the ďŹ rst company in Saskatchewan to sell wind power.

MACK AUCTION REAL ESTATE & WELDING EQUIPMENT

FAST truck push Rick Renwick coordinated the arrival of this poley tank on a bed truck as part of a rig set up at a Trinidad Drilling lease site in Frobisher.

Éş Page C1 Tony bought his ďŹ rst truck, a 1955 Chev water truck and its time, the family run business has seen its share of ups and downs. â&#x20AC;&#x153;In the last eight months, itâ&#x20AC;&#x2122;s kind of exploded, â&#x20AC;&#x153;said Day. â&#x20AC;&#x153;But every time it seems to explode, it seems to implode too. In July â&#x20AC;&#x2122;85, we moved 100 rigs and in July â&#x20AC;&#x2122;86 we moved one rig three times.

It can be a good business but it can be tough time too. With fuel going way up it costs a lot to keep everything running. Itâ&#x20AC;&#x2122;s high maintenance stuďŹ&#x20AC; and it can be boom or bust.â&#x20AC;?

FAST Trucking is the largest privately run rig moving company in western Canada and has continually rebuďŹ&#x20AC;ed takeover oďŹ&#x20AC;ers from larger corporations. Dayâ&#x20AC;&#x2122;s sister Linda also works for the company as a bookkeeper and another sister, Teresa works in a nursing home in CarnduďŹ&#x20AC;. â&#x20AC;&#x153;We are still a family run business and we are

proud of the operation we run,â&#x20AC;? said Day. â&#x20AC;&#x153;I like running it. Weâ&#x20AC;&#x2122;ve been fortunate that weâ&#x20AC;&#x2122;ve kept a lot of our men. A lot of our guys are long time employees and have stuck with us even when itâ&#x20AC;&#x2122;s slowed. We work really close together.â&#x20AC;?

Despite the current economic boom, Day says expansion of his ďŹ&#x201A;eet is limited by the availability of experienced drivers. â&#x20AC;&#x153;You canâ&#x20AC;&#x2122;t buy 20 trucks and ďŹ nd 20 drivers. You need specialized trucks to move a rig and you need good experienced guys to

move a rig. â&#x20AC;&#x153;There are a lot of scenarios. Thereâ&#x20AC;&#x2122;s muddy roads, bad corners, bad approaches big heavy high loads, and power lines to watch out for. We like to hire guys green and train them the way we want them trained.â&#x20AC;?

Day will also drive a truck or act as a truck push when the going gets tough and heâ&#x20AC;&#x2122;s not afraid to climb to the top of his wind generator to make repairs either. Heâ&#x20AC;&#x2122;s certainly not afraid of heights.

He spent a recent vacation

Tracy McConnell Owner/Manager 104A Perkins Street.

P.O. Box 575, Estevan, SK S4A 2K1 Ph: (306) 634-7552 Fax: (306) 634-7558 Email: kashanchors@sasktel.net

Saturday, September 27, 2008 NAKA WELDING LIMITED s@ Sale Start .T. .S C M A 0 :0 10

(306) 483-2631

OXBOW, SK

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WATCH FOR SIGNS www.MackAuctionCompany.com www.MackAuctionCompany.com REAL ESTATE â&#x20AC;&#x201C; 4 LOTS SELL AS ONE PACKAGE!!

COMMERCIAL PROPERTY: 85 GALLOWAY DRIVE; 2 Lots â&#x20AC;&#x201C; Each Are 68 X 125 Feet, Quonset Type Shop 32 X 64, Natural Gas, 3 Phase Power, 12 X 24 Storage Shed, Can Be Re-Zoned To Residential, 2008 Taxes $1136.43 RESIDENTIAL PROPERTY: 84 PARK AVENUE; 2 Lots â&#x20AC;&#x201C; Each Are 68 X 125 Feet, Corner Property, Great Scenic View Of Oxbow Valley, Zoned Residential, 2008 Taxes $291.40 TRUCKS Â&#x2021; &+(9 6,/9(5$'2 21( 721 '8 ALLY WELDING TRUCK; Gas Engine, 5 Speed Manual, Air Conditioner, Long Wheel Base, 90 400 KM, Steel Welding Deck Complete With /,1&2/1 6$ '& :(/'(5 +RXUV 61 1GBJC34U52F227960 Â&#x2021; &+(9 21( 721 '8$//< WELDING TRUCK; Gas Engine, 5 Speed Manual, Air Conditioner, Short Wheel Base, 94 700 KM, Steel Welding Deck Complete With /,1&2/1 &/$66,& ,,, ' :(/'(5 +RXUV SN.1GBJC34R8YF413254 Â&#x2021; &+(9 21( 721 '8$//< Gas Engine, 4 Speed Manual, Steel Deck, Gin Poles, New 12 000 Lbs Electric Winch, 61 *%+5 . .- Â&#x2021; &+(9 &86720 721 6$1'%/$67 ING TRUCK; Diesel Engine, 5 Speed Manual, INGERSOLL-RAND 250 INDUSTRIAL AIR COMPRESSOR, John Deere 4039 DF Engine, +RXUV 6DQVWRUP 6DQG 3RW %ODVWHU SN.1GDG6D1F2BV557288 Â&#x2021; &+(9 &86720 '(/8;( 21( TON YARD TRUCK; Steel Deck, PTO, Winch, SN.CCL339V141639 Â&#x2021; :(/',1* 87,/,7< 75$,/(5 Â&#x2021; :(/',1* 758&. '(&.

SHOP TOOLS Â&#x2021; /,1&2/1 (/(&75,& &/$66,& ,,, :(/'(5 0RGHO . +RXUV 61 Â&#x2021; 0,//(5 ',0(16,21 0,//(5 6(5,(6 :,5( )((' :(/'(5 ² 3+$6( Â&#x2021; 0,//(5 65+ '& :(/'(5 ² 3+$6( Â&#x2021; +2%$57 :,5( )((' :(/'(5 ² 3+$6( Â&#x2021; +2%$57 5&& +' :(/'(5 ² 3+$6( Â&#x2021; $&./$1'6 3/$60$ &877(5 ² 3+$6( Â&#x2021; ,1*(562// 5$1' +' *$6 (1*,1( $,5 COMPRESSOR

Â&#x2021; .%& 0$&+,1(5< +' '5,// 35(66 ² 3+$6( Â&#x2021; '5,*$5' (/(&752'( 29(1 Â&#x2021; 63(('$,5( 835,*+7 $,5 &2035(6625 Â&#x2021; ,1'8675,$/ 6&,(17,),& 0 + 6 021,7256 Â&#x2021; *$6 32:(5(' 3$,17 635$<(56 Â&#x2021; 0$.,7$ &+23 6$:6 6,'( *5,1'(56 Â&#x2021; $&(7</(1( &$576 725&+(6 Â&#x2021; :(67:$5' 835,*+7 722/ %2; Â&#x2021; :(/',1* 7$%/(6 Â&#x2021; :(/',1* &857$,16 Â&#x2021; &+23 6$: %/$'(6 Â&#x2021; *5,1',1* ',6&6 STEEL INVENTORY Â&#x2021; Âľ ² Âľ ),5(:$// 78%,1* :$// ² 9$5,286 /(1*7+6 Â&#x2021; 2,/),(/' 3,3( Â&#x2021; 48$17,7< 2) 2,/),(/' 9$/9(6 3,3( FITTINGS Â&#x2021; 48$17,7< 2) $1*/( )/$7 3/$7( ,521 Â&#x2021; 48$17,7< 2) $/80,180 75($' *5$7,1* Â&#x2021; 48$17,7< (;3$1'(' 0(7$/ , %($0 &+$11(/ ,521 Â&#x2021; 6,*1 32676 Â&#x2021; /276 2) &87 2))6 0,6& ,521 MISC. EQUIPMENT Â&#x2021; 3257$%/( )(1&(6 )25 3803-$&.6 Â&#x2021; $&(7</(1( 2;<*(1 %277/( &$*( Â&#x2021; 0(7$/ 6725$*( 81,76 Â&#x2021; 48$1,7< 2) 3,3( 5$&.6 Â&#x2021; 6&$))2/',1* Â&#x2021; 3$,17 3$,17,1* 6833/,(6 %586+(6 MASKS, ETC. Â&#x2021; %86+(/ +233(5 7$1. 6$1' '5<,1* UNIT Â&#x2021; &86720 0$'( 602.(5 %$5 % 4 PLUS MUCH MORE

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C4

PIPELINE NEWS September 2008

Investors alerted to Pipeline scribe feels bogus investment scheme richer for his experience Regina â&#x20AC;&#x201C; File this under buyer beware news. Energy and Resources Minister Bill Boyd continues to warn the public about an alleged investment opportunity known as â&#x20AC;&#x153;Crown Revenue Distributionsâ&#x20AC;? or CRDs being promoted through an Internet newsletter called Wealth Daily.

The June 21st edition of Wealth Daily advertises tremendous potential investment earnings through â&#x20AC;&#x153;a revolutionary proďŹ t-sharing program in the province of Saskatchewan that forces the oil companies to share 90 per cent of their surging wealth with you.â&#x20AC;? â&#x20AC;&#x153;I want to state as clearly as I can CRDs are not a program of the Government of Saskatchewan,â&#x20AC;? said Boyd in a June news release. They are not

government-authorized as Wealth Daily claims. â&#x20AC;&#x153;They are neither sanctioned nor endorsed by the Government of Saskatchewan. The information presented through Wealth Daily on June 21 is inaccurate in some places and completely misleading in others. It should not be mistaken for a government program. It is not.â&#x20AC;?

The Ministry of Justice has been asked to review the document and assess the legality of the representations it makes. In the interim, investors are asked to be mindful of the old adage buyer beware. â&#x20AC;&#x153;Saskatchewan oďŹ&#x20AC;ers an abundance of good investment opportunities,â&#x20AC;? Boyd said. â&#x20AC;&#x153;Crown Revenue Distributions or CRDs is not one of them.â&#x20AC;?

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Itâ&#x20AC;&#x2122;s time to say goodunderstand why. bye. Opportunity came In the few short knocking for me and I am months I reported on headed out west â&#x20AC;&#x201C; as west the oil and gas industry, I as you can go to Vancouquickly learned that hard ver Island. While I look work was the key to the forward to my new job in success of most of the public relations and the people and businesses I west coast lifestyle, there connected with along with are many things I will miss the fact business relationabout working in this area. ships were extremely imGeoff Lee Most of all is the job portant in this industry. itself. I got to work at home and create Having lived in ďŹ ve provinces, I my own story ideas for every edition. can honestly say that the nicest and the Iâ&#x20AC;&#x2122;d never done that before and I learned hardest working people are Saskatchthat I am very self motivated and that ewan residents â&#x20AC;&#x201C; hands down. I know working at home was a good overall ex- people are just as friendly here when perience. times are tough, as I lived here once beThe only gun I was under was the fore the economy took oďŹ&#x20AC;. need to write enough to ďŹ ll up the paDo I have a favourite story? My per. The number of required stories kept favourite topic was doing town proďŹ les going up in pace with the steady growth like the ones I wrote about Stoughton, of advertising revenue. Iâ&#x20AC;&#x2122;d like to think I Weyburn and Oxbow. Speaking with had something to do the quick success- community leaders and business leaders ful growth of the paper to date. was like being presented with the key to Most of all, I have to mention the understanding what makes their comreception I received from those whom I munity tick. In addition, these proďŹ les wrote about was exceptionally friendly opened my eyes to the inďŹ&#x201A;uence that and welcoming. I think readers feel the the oil and gas industry has on the local Pipeline News is a part of their industry economy. so that makes it easy to approach peoI also liked incorporating the people for interviews. It was a refreshing ple side of the business into stories and I change from community newspaper think I did that better in this issue than reporting. the previous ones I worked on. Many Some of the people I met went out of the people I met have some exciting of their way to be interviewed for the hobbies but the lasting impression that Pipeline and I felt very privileged to be I will take with me, is that the people able to tell their story â&#x20AC;&#x201C; mostly a good of Saskatchewan are so darned nice. I one about growth. Even those people think I keep my Saskatchewan licence who turned me down, let me know it plates on as long as possible. Thatâ&#x20AC;&#x2122;ll fool was because they were too busy. I can them.

PIPELINE NEWS September 2008

C5

STA driving instructor canâ&#x20AC;&#x2122;t park his career Weyburnâ&#x20AC;&#x201C; Iâ&#x20AC;&#x2122;ve Been Everywhere Man. That Johnny Cash highway tune sums up the 42 year truck driving career of Ken Schnellback who puts his experience to work teaching new drivers for the Saskatchewan Trucking Association. Courses are arranged through Southeast Regional College campuses With more than ďŹ ve million miles under his belt criss-crossing 48 states, 10 provinces and three territories Schnellback says not a week goes by when a former company wants him back behind the wheel. â&#x20AC;&#x153;The economy of Saskatchewan is so strong and drivers are in short supply in every sector including the oil and gas industry,â&#x20AC;? he said.

The STA estimates more than 4,000 drivers a year are needed in the province. The demand for Class 1 licence training is also high. â&#x20AC;&#x153;I havenâ&#x20AC;&#x2122;t had a day oďŹ&#x20AC; since January,â&#x20AC;? added Schnellback. â&#x20AC;&#x153;Iâ&#x20AC;&#x2122;m supposed to be semi retired. A lot of people want to take the course to haul oil and water and everything to do with the oil ďŹ eld. They want to go into the oilďŹ eld because of the increase in job opportunities in Saskatchewan. There are more jobs here right now than in Alberta. They want to drive big trucks because itâ&#x20AC;&#x2122;s all about the money.â&#x20AC;?

The day Pipeline News showed up in Weyburn for the start of a ďŹ ve day course, both students were farmers who mainly wanted the Class 1 licence to legally haul grain oďŹ&#x20AC; the farm. â&#x20AC;&#x153;Right now, we donâ&#x20AC;&#x2122;t get a lot of drivers for the oil patch because they are out there working,â&#x20AC;? said Schnellback. â&#x20AC;&#x153;A lot of people who want to get their Class 1 are doing the grunt work â&#x20AC;&#x201C; rigging. Theyâ&#x20AC;&#x2122;ll show up before freeze-up or in the spring when road closures are on. Last spring, we had six instructors

down here and every one of us was doing something with the oilďŹ eld.â&#x20AC;?

The two truck driving students in the latest course taught by Schnellback were funded by the Canadian Agriculture Skills Service that oďŹ&#x20AC;ers farmers $16,000 in skills training to earn oďŹ&#x20AC;-farm income.

One of those students was Calvin Peterson who didnâ&#x20AC;&#x2122;t rule out an oil patch job if the need arose.

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â&#x20AC;&#x153;I plan to stay on the farm and maybe Iâ&#x20AC;&#x2122;ll buy my own truck and haul grain,â&#x20AC;? he said. â&#x20AC;&#x153;Maybe in the future if things donâ&#x20AC;&#x2122;t go as planned Iâ&#x20AC;&#x2122;ll have to get a job and â&#x20AC;&#x201C; who knows â&#x20AC;&#x201C; maybe drive a truck in the oil patch. I could work in the wintertime in the oil patch if there are jobs around.â&#x20AC;?

Asked why he chose STAâ&#x20AC;&#x2122;s ďŹ ve-day course, Peterson said, â&#x20AC;&#x153;I drive a semi to haul grain now but Iâ&#x20AC;&#x2122;m taking the course to learn how to do it right.â&#x20AC;?

The STA is a non-proďŹ t, trade association that represents the interests of all types of private and for-hire trucking companies in the province. â&#x20AC;&#x153;Most of the instructors are here to teach and put out the best driver we can,â&#x20AC;? said Schnellback who kicked oďŹ&#x20AC; the course with a circle and air check.

The purpose is to inspect everything from tire treads and signal lights to the horn and wipers while making brake adjustments and looking for oil leaks.

After that students are driven out to grid roads near Weyburn where they take turns practising shifting and making safe turns with 53-foot trailer on the back. â&#x20AC;&#x153;They have to be real conscious of safety,â&#x20AC;? said Schnellback who has failed students for lack of safety awareness and attitude. â&#x20AC;&#x153;They have to be able to shift their transmission when theyâ&#x20AC;&#x2122;re going over rough roads. They have to be able to see a hazard a half mile away because itâ&#x20AC;&#x2122;s going to take you awhile to stop. ɸ Page C8 Saskatchewan Trucking Association driving instructor Ken Schnellback puts Weyburn area students Alica Groenewole and Calvin Peterson through an initial circle check before driver training begins.

C6

PIPELINE NEWS September 2008

Event centre to be built with help Estevan â&#x20AC;&#x201C; Applause can already be heard from the new $17.5 million event centre in Estevan as construction is slated to be under way this month. The early appreciation is for the fundraising donations from a strong oil and gas economy that has pushed the total past the $6.5 million mark.

Leading the local cheers is Estevan Mayor Gary St. Onge who said, â&#x20AC;&#x153;Iâ&#x20AC;&#x2122;m surprised at the total

amount that weâ&#x20AC;&#x2122;ve raised.

The largest percentage of that is from the oil and gas industry. We thought they would be on side.

We didnâ&#x20AC;&#x2122;t know it would be this much. Certainly, the oil patch is very important to our city. They get behind things. They always have. â&#x20AC;&#x153;Generally too, the citizens are behind it. I think what gets people on side is the amount of donations. The fundraising committee thinks by

the time itâ&#x20AC;&#x2122;s built, theyâ&#x20AC;&#x2122;ll have close to $8 million.â&#x20AC;?

As Graham Construction starts to dig the foundation, the sale continues for naming rights of the overall complex and its components including the new event centre where hockey and concerts will take place and the existing aquatic centre, library and Lignite Miners Centre. â&#x20AC;&#x153;We have the $1 million for the event centre.

Thatâ&#x20AC;&#x2122;s already been tak-

en,â&#x20AC;? said Kim Anderson chair of the fundraising committee. â&#x20AC;&#x153;We are looking for $1 million for the naming rights for the whole complex.â&#x20AC;?

A long list of oil companies and related businesses have purchased the naming rights to everything from washrooms, seat sections and corporate boxes to signage, playersâ&#x20AC;&#x2122; benches

and the Zamboni.

Some of the major oil and gas related contributors are Crescent Point, Canadian Natural Resources Redhead Equipment, Ceda-Reactor and Doris and Ray Frehlick and Penn West. â&#x20AC;&#x153;Iâ&#x20AC;&#x2122;ve been pleased with the response of the oil and sector,â&#x20AC;? said Anderson who noted fundraising would continue

until the facility opens in January, 2010. â&#x20AC;&#x153;Oil companies realize they have to have amenities in Estevan to entice people to come here,â&#x20AC;? he said. â&#x20AC;&#x153;When they see a project like this, they want to support it. It makes their life easier to bring people here to work.â&#x20AC;? ɸ Page C7

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Doug Trapp, a member of the Estevan event centre fundraising committee accepts a donation from Tim Beatty, manager of CE Franklin Ltd., one of many local oil and gas related businesses that have helped pushed the fundraising total past the $6.5 million mark.

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PIPELINE NEWS September 2008

from local oil and gas companies ɺ Page C6 Roy Ludwig who chairs the event centre committee says the key to fundraising success was adding representatives from the oil and gas sector to the committee.

“We had key people like Ray Frehlick (Prairie Petro-Chem Ltd. and Prairie Mud Service), Ambrose Hengen (Tarpon Energy Services Ltd.) and Mike LaCoste Praire (Prairie Petro-Chem) who helped to move things forward as far as the oil industry goes. They had a lot of contacts in the industry and once they helped us get the word out, it just took off.

“The timing couldn’t have been better. It hit at the right time.The fact that we needed a new rink and

that the fundraising went out as oil activity picked up – it was just great timing.”

The event centre committee will continue to meet every two weeks throughout the construction phase announce plans to recognize the donations from oil and gas companies, businesses and even individuals who purchase naming right to seats.

“We’re putting signs up at all four entrances to the city and because the oil and gas sector is such a prominent part of our community, one of those signs will recognize the oil and gas industry,” said Ludwig.

A puck wall display is also being planned for the event centre lobby to note the names of all individuals who have purchased seats.

“Seats are not half sold yet,” said Anderson. “It’s something we still have to push. There’s half a million dollars right there. “Donations have been petering off, but we have some loose ends that we need to wrap up. We can raise funds during construction through various contractors.

The company that purchases the naming rights to the complex will have its name prominently displayed on the event centre for 10 years. The purchase comes with a corporate spectator box that normally costs $50,000 and continuous advertising on marquis that will be displayed throughout the complex and the community. In addition, they get a tax deduction receipt.

Ludwig says the suc-

cess Estevan has had with its fundraising has prompted calls from other communities like Weyburn asking for the game plan.

“The project wouldn’t have been possible without the help from our oil friends in the business as well as the oil companies that have come forward in such as great fashion. It’s just been super, ” he said.

“People realize the rink was built in the mid 1950s and it’s time Estevan had a new rink. With the Bruins having such a great name not only locally, but provincially, nationally and even in the U.S., we

are able to get the people we did to our sportsmen’s fundraising dinners. It’s been a great effort by everyone.

“Let’s not lose sight of the fact that it’s not just a hockey rink. We’ve called it an event centre and we will able to host concerts and all types of venues. It showcases Estevan as an economic engine in this part of the province. It shows this is a happening place and things are moving ahead.”

Mayor St. Onge sees the new event centre as a place to host conventions and all types of events.

“We will have a floor that

C7

will cover the ice so we can have all sorts of concerts,” he said. “The old rink was small and showing its age.

We have an opportunity to host, the Royal Bank Cup. That can be huge. We know how much events bring to the city. The whole city benefits – restaurants, hotels and gas stations.”

St. Onge said the city plans to maintain the old Civic Centre for awhile to ensure there is enough ice time to meet local needs.

He also noted the city is working hard to secure a promised federal grant of $3 million to match a similar contribution from the province.

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C8

PIPELINE NEWS September 2008

Saskatchewan short of qualiÂżed drivers Éş Page C5 â&#x20AC;&#x153;If you talk to students early in the morning they will have the attitude, it should be easy but if you talk to them at the end of the day they will be tired. After weâ&#x20AC;&#x2122;re done with them, they can usually back up pretty good and drive around pretty good. As for be-

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truck and say â&#x20AC;&#x2DC;go hereâ&#x20AC;&#x2122; because they are so short of manpower. We need a lot of young drivers. A lot of baby boomers like me are retiring.â&#x20AC;?

Schnellback who adds there would be a lot more drivers today if the new comfortable trucks of were available years ago. â&#x20AC;&#x153;New trucks are a dream, â&#x20AC;&#x153;he said. â&#x20AC;&#x153;When I started, a ďŹ ve and four transmission was the cream of the crop.

You had two gear shifts you had to change at the same time. Now everythingâ&#x20AC;&#x2122;s on the stick. You just move the stick around and it does everything for you. â&#x20AC;&#x153;The last truck I owned had a 32-inch ďŹ&#x201A;at screen TV, a microwave, and a fridge and satellite radio,â&#x20AC;? says despite the comforts there are a lot of hazards driving in the oil ďŹ elds. â&#x20AC;&#x153;Thereâ&#x20AC;&#x2122;s rain. When you get on those roads, itâ&#x20AC;&#x2122;s muddy,â&#x20AC;? he said. â&#x20AC;&#x153;You can slip in the ditch and roll and youâ&#x20AC;&#x2122;ve got highly explosives material you are hauling around. If you take the outlook that every load is dangerous, you will take more care. You have to be on top of everything.â&#x20AC;?

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coming a pro, it will take two years.

Schnellback says driving is a tough job but you can make a lucrative living doing it. The average income is $60,000 to $80,000 a year he says. â&#x20AC;&#x153;Thereâ&#x20AC;&#x2122;s a lot involved.

Youâ&#x20AC;&#x2122;d be surprised how much energy is takes to drive a truck. The older you get the tougher is gets too.â&#x20AC;?

Schnellback says oil patch drivers are a special breed. â&#x20AC;&#x153;They are rough and tough. They have a â&#x20AC;&#x2DC;weâ&#x20AC;&#x2122;ll get it doneâ&#x20AC;&#x2122; attitude. When I started, I was running up to Fort McMurray way back when it just a dirt road and we had to drive oďŹ&#x20AC; the road for a loaded truck. Heâ&#x20AC;&#x2122;d pull us out and if we were loaded, the other guy would go in the ditch and weâ&#x20AC;&#x2122;d pull him out.â&#x20AC;?

Asked why he didnâ&#x20AC;&#x2122;t stick with driving for oil companies, Schnellback said, â&#x20AC;&#x153;I just decided to go into long haul and see the country and boy, did I see the country.â&#x20AC;?

He says he can sing the Iâ&#x20AC;&#x2122;ve Been Everywhere Man song and know all the places the song names.

He said when he started driving, they would take anyone without two years of experience but now he says in the oilpatch â&#x20AC;&#x153;theyâ&#x20AC;&#x2122;ll probably just shove you into a

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C9

C10

PIPELINE NEWS September 2008

Made in Saskatoon product curbs wellhead spills Geoff Lee

well will spray out of the top and cause salt water and oil to go on Alameda– Necessity the ground and run into is the mother of invenground water.” tion. Ian Thompson and The EnviroTrap Larry Ireland have years containment system is of land and oilfield serdesigned to alleviate vice and they sought a that problem. An elecway to prevent wellhead tric Murphy switch is fluid leaks of salt and installed and once eight oil from contaminating litres of fluids has leaked soils and ground water. out of the well, it will Their solution was to shut down the pump create a secondary welljack. head containment prodThe EnviroTrap uct called an EnviroTrap costs approximately that will contain a fluid $1,400 installed. The spill of up to eight litres. complete system inA float switch will autocludes the $1,050 self matically shut down the contained barrel stand well. A complete system I have done a that will contain the includes a chemical barof a 45-gallon drum rel containment stand. lot of work to leak within a three walled EnviroTrap Systems is well timed as the Sas- make it operator tank.

“NAL is a great supkatchewan Ministry of friendly. porter of this and other Energy and Resources are catching added wellhead contain- Larry Ireland companies on because of the highly ment as a new condition corrosive material they for well licence approvwell licence application. put into the well. It is als in May. It’s known as PetroBank Energy very viscous and will percondition 13.

“In the future, when and Resources Ltd. has colate into the ground oil companies drill a installed more than 100 quickly,” said Ireland.

Thompson sees the well, a product like this EnviroTraps on its wellwill be put on the well,” heads in the Bakken in system as a preventasaid Ireland who markets the last two months and tive device that can save and installs the wellhead NAL Resources was oil companies expensive unit. “It’s just a matter a major early adapter. clean-up costs.

“Once a well is of time when every well “They’ve been putting them on all their new abandoned, say 40 years is going to have to have drills since 2006 and down the road, it could them.”

The product has continue to do so today,” cost up to $300,000 bebeen in the making for said Ireland. “They were cause the salt water has four to five years and way ahead of condition leached into the soil to a depth of 30 to 40 feet took many redesigns and 13.”

When asked to ex- and they have to dig that consultations with operators using the system plained how wellhead up,” he said.

“With our product to make it effective and spills occur, Ireland said, user friendly. The prod- “With all oil wells, the used over the length of uct is manufactured in polish rod moves 24/7 the well, it may not alleSaskatoon and retails at and it has a rubber pack- viate 100 per cent of the ing. After awhile it will problem, but it will cut oilfield supply outlets.

“We think our prod- wear out or disintegrate down on their clean-up uct is superior to the to the point where the cost. It’s a long term incompetition because of fluids coming out of the vestment.” the operator friendly design of it, “said Thompson. “It requires very little maintenance and obviously the operator has to check on it. If there is a leak, the packing needs to be tightened and it has to be cleaned out once in a while. Larry and I have done a lot of work to make it operator friendly.”

Like most successful entrepreneurs Thompson and Ireland have had to overcome resistance to change but business is picking up with condition 13 written into the

´

Larry Ireland and Ian Thompson display the parts of their EnviroTrap secondary wellhead containment system. It has a Áoat level switch that bolts onto the wellhead and shuts it off when eight litres of Áuid spill into the containment unit.

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PIPELINE NEWS September 2008

C11

Farm fund and boom times drive truck training Weyburnâ&#x20AC;&#x201C; A combination of federal funding for farmers and a booming oil and gas and construction economy is helping the good times roll for Class 1driver training at Southeast Regional College campuses. â&#x20AC;&#x153;Usually, we see a real slowdown over the summer months, but that hasnâ&#x20AC;&#x2122;t seemed to happen this year,â&#x20AC;? said Karen Melle, lead consultant for southeastâ&#x20AC;&#x2122;s Energy Training Institute.

At the Weyburn campus about 50 per cent of student drivers are farmers hoping to earn oďŹ&#x20AC;-farm income through driver training or other skill development courses funded by the Canadian Agriculture Skills Service. CASS provides each member of a farm household with up to $16,000 in skills training. â&#x20AC;&#x153;A lot of farmers are going with the truck driver training since the oilďŹ eld is right out their back door,â&#x20AC;? said Bonnie Adacsi-Cooke, the course coordinator in Weyburn. â&#x20AC;&#x153;In the last two

years, weâ&#x20AC;&#x2122;ve oďŹ&#x20AC;ered over 60 courses. The oilďŹ eld is booming. They canâ&#x20AC;&#x2122;t get enough workers.

Whether you work in oil or construction, you have to haul a trailer or whatever and you have to have the training.â&#x20AC;?

Southeast college has partnered with the Saskatchewan Trucking

more than $100,000 in the oil industry,â&#x20AC;? said Jim McQuoid who manages STA training division. â&#x20AC;&#x153;Thatâ&#x20AC;&#x2122;s why most people want to get into oilďŹ eld driving.

More than 28,000 people are employed in transportation industries in Saskatchewan where they are more than 2,400

be equipped with truck driving capabilities. â&#x20AC;&#x153;What weâ&#x20AC;&#x2122;re seeing is the need for Class 1, mainly because of the cost of training. A Class 3 in a lot of cases would be adequate, but companies are licensing drivers to the top grade the ďŹ rst time rather than â&#x20AC;&#x2DC;graduate them upâ&#x20AC;&#x2122; and incur more costs.â&#x20AC;?

STAâ&#x20AC;&#x2122;s driving proUsually, we see a real slowdown grams can vary from ďŹ ve days to as a long as over the summer months, but six weeks at a cost from that hasnâ&#x20AC;&#x2122;t seemed to happen this $2,000 to $7,500.

Asked why students year would chose STA in-Karen Melle stead of a cheaper private company McQuoid said, Association to deliver registered trucking com- â&#x20AC;&#x153;We are not trying to sell Class 1 driver training to panies according to the a licence. We are trying all its campuses includ- STA. to sell a career and teach ing Whitewood, Assiniâ&#x20AC;&#x153;Every news ar- employable skills. Truckboia, Moosomin and In- ticle is talking about the ing is 90 per cent drivdian Head. boom so I think the hu- ing but the mental side â&#x20AC;&#x153;We contact STA man resource shortage is huge â&#x20AC;&#x201C; the amount of and set up a schedule. is going to continue,â&#x20AC;? regulations you need to They have a number of added McQuoid. â&#x20AC;&#x153;We know for diďŹ&#x20AC;erent jurisdrivers and trucks avail- also oďŹ&#x20AC; heavy equipment dictions, the regulations able to us,â&#x20AC;? said Melle. operator training as this to stay legal â&#x20AC;&#x201C; thatâ&#x20AC;&#x2122;s the Southeast college oďŹ&#x20AC;ers is another shortage weâ&#x20AC;&#x2122;re knowledge you need to six, seven and 10-day seeing in the oil indus- be a good operator. We courses with two day of try and all areas of con- want to see people succlass time booked for the struction. The oil and gas 10 day option. industry suďŹ&#x20AC;ers from a â&#x20AC;&#x153;A good experienced large turnover. Itâ&#x20AC;&#x2122;s almost driver can make $60,000 a pre-requisite in the oil to $80,000 driving and industry that employees

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said McQuoid. â&#x20AC;&#x153; â&#x20AC;&#x153;Obviously, no one is going to be experienced without putting in the time. Weâ&#x20AC;&#x2122;re hoping the training is creating a person who is licensed to learn and has some of the skills needed to start in the career and will have the attitude needed to be a good operator.

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ceed and help build the economy of the province.â&#x20AC;?

STA is a non-proďŹ t organization that lobbies for the interests of trucking and for the harmonization of regulations. â&#x20AC;&#x153;If you took of all of the colleges, you would ďŹ nd that 20-40 hours of wheel time would be enough to pass the minimum standard exam,â&#x20AC;?

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C12

PIPELINE NEWS September 2008

Local pickup sales buck national trends Estevan– Sales of domestic pickup trucks are in a rut in most North American markets but Chev, Ford and Dodge trucks are the vehicles of choice for most workers in the southeast Saskatchewan oilpatch.

In the U.S., auto sales were reported at 15-year lows in July in the face of record gas prices and a consumer defec-tion from trucks and SUVs. A sampling of Chev, Ford d and Dodge dealers in Esteevan proves sales in this area ea are bucking market trends. “I would say the Estevan area is the strongest truck market in Canada,” said new sales mananager Derek Lapawchuk at Power wer Dodge.

“Based on sales numbers, I definitely see an overall increase in truck sales over the next few years. The oilfield market is our biggest customer. Truck sales are an important part of our sales. At least we have an industry out here to support it.”

Herb Padwick, general manager at Murray GM said Saskatchewan and Alberta are way ahead of the rest of the country for GM sales. “We really do need trucks. Our trucks are not for picking up groceries.

Our trucks are used as trucks. They are into oil leases and are built for the type of work our guys need to do here.

“We’ve seen a huge increase in our truck deliveries. A whole bunch of companies have come here which has increased our fleet business exponentially.”

Over at Senchuk Ford, sales consultant Randy Senchuk said Estevan is the best place to be for truck

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Estevan Motors Ltd. sales manager Doug Sands reports sales are up a whopping 80 per cent in 2008. One of the best selling oil patch trucks is this Dodge 3500 quad cab.

sales and it has been for quite years “The a few years.

“The oil industry has dominated this area for as long I’ve been around and the guys have to get into the field. The versatility of a truck can’t be replaced in this area with the rugged terrain we have to go through.”

The high price of gas at the pump is a concern but not a deterrent for truck buyers with big oil paycheques.

“I think they are concerned but it seems we live in bubble here,” said Senchuk. “The higher the price of oil, the more they (oil workers) seem to make.”

Padwick also said fuel economy is an issue for some buyers. “At the end of the day, what’s left in your pocket is what you feed your family with.”

At Power Dodge, Lapawchuk puts fuel economy in the context of what a truck is for. “The main purpose is for getting to work and getting in and around the tough spots in the patch. It cuts a lot of time too rather getting stuck.”

I the rough and tumble oilIn patch local Chev, Ford and Dodge patch, deale agree four wheel drive trucks dealers with short boxes are the right choice.

“We sell mostly one-ton diesels,” said Lap Lapawchuk at Power Dodge. “Four whe drive is a given. We usually wheel don sell any two wheel drives. Also don’t l of people prefer the leather a lot pa packages over cloth. It’s easier to ma maintain for guys getting in and out of them constantly in the patch.”

It’s a similar situation at Murra GM as the new crew cabs come ray with smaller boxes. “People are asking four and the four doors are the most for the four by fours s much handier so when you get popular. They are so home to the family you’ve got that four door. Plus a lot of guys in the oilpatch have a lot of stuff they have to carry with them.”

Senchuk at Ford estimates his truck sales will be up another 10 per cent this year. “Just about everyone is buying them, but the largest portion of our business is all oil and gas related. We sell a lot of high end trucks – a lot of Lariats with the works and full leather.

“A lot of these guys spend a lot of time in their trucks so they want something that’s comfortable, rugged and useable.”

The Ford half ton F-150 comes with a five and half or six and a half foot box. The super duty three quarter and one ton trucks are numbered F-250, F-350 and so.

Bigger trucks with powerful engines are also finding favour pulling large trailers and campers.

,ncUease 2il Gas PUoduction!

Solution Valves were installed on pumps run in Five different S. E. Saskatchewan Wells. Oil Producers saw their collective Revenues increase by $ 11,000 per Day. Pumps were run in the Alemeda, Browning and Weyburn Fields.

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In the Browning Àeld in S. E. Sask. One Oil Co. saw their Sucker Rod Pump Life more than double. – Previously the pump was pulled every 9.5 months. 20 months after a solution valve was installed the pump has not been pulled.

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7Ke EaJle Solution 9alYe ² SuckeU Rod Pump EnKancement The valve is designed to be incorporated in any API sucker rod pump. It is positioned on the bottom of the plunger, with the usual traveling valve relocated at the top. Within the Solution valve, the ball is centered and stationary, while the seat moves up and down in accordance with resistance imposed by its short drag plunger. Consequently, the valve opens and closes upon initiation of down and up strokes respectively.

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PIPELINE NEWS September 2008

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PIPELINE NEWS September 2008

CADD nature photographer Â&#x201E; GeoďŹ&#x20AC; Lee

Midwest Surveys CADD technician Dianne Glazier has adopted photography as a hobby. Three of her Saskatchewan nature photographs are featured in Midwestâ&#x20AC;&#x2122;s 2008 corporate calendar.

Estevan â&#x20AC;&#x201C; Surveying can be a back to nature job.

Thatâ&#x20AC;&#x2122;s the way it started for Midwest Surveysâ&#x20AC;&#x2122; Dianne Glazier who started snapping nature scenes when she worked in the ďŹ eld in 2004 and itâ&#x20AC;&#x2122;s carried over to her desk job as a CADD technician.

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â&#x20AC;&#x153;I really enjoy taking pictures,â&#x20AC;? she said. â&#x20AC;&#x153;My original thought was to take pictures of things like Saskatchewan scenery and abandoned farms and barns and elevators, so that I could one day draw them, paint them, and hang them on my walls. However, now I just print the pics oďŹ&#x20AC; and frame them for walls.â&#x20AC;?

This fall sheâ&#x20AC;&#x2122;s taking a photography course by correspondence to ďŹ ne focus her skills and she just bought a new Pentax K20D digital to go with her ďŹ rst Kodak Z7590. She is also breaking in to wedding photography and recently took family portraits for a co-worker.

Three of her photos are included in Midwest Surveysâ&#x20AC;&#x2122; 2008 corporate calendar for the months of March, July, November. The project was part of an annual employee photo contest.

Asked what the reaction was to her calendar entries, Glazier said, â&#x20AC;&#x153;They thought it was pretty cool especially here in the oďŹ&#x192;ce.â&#x20AC;?

--

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March depicts her thumbnail of three young birds in a nest waiting to be fed.

Her July photo is printed as an oversized thumbnail of a canola ďŹ eld that Glazier says was taken last summer a couple of miles north of Ketchen Saskatchewan, seven miles west of Preeceville. â&#x20AC;&#x153;Thatâ&#x20AC;&#x2122;s where my ďŹ ancĂŠ lives,â&#x20AC;? she said.

Glazierâ&#x20AC;&#x2122;s entry for November shows a wintery sunset she snapped near her home north of Estevan. â&#x20AC;&#x153;I picked Saskatchewan scenery because itâ&#x20AC;&#x2122;s so diverse and beautiful, â&#x20AC;&#x153;she said. â&#x20AC;&#x153;Also, I didnâ&#x20AC;&#x2122;t like anything that I saw in stores to buy and put on my walls, as Saskatchewan scenery wasnâ&#x20AC;&#x2122;t that popular, or so I thought. â&#x20AC;&#x153;I love the look of old elevators and old barns, but my tastes have changed slightly, as I have become more comfortable behind the lens. Now, I like to take pictures of sunsets, ďŹ&#x201A;owers, my dogs and cats, and my yard.â&#x20AC;?

One of Glazierâ&#x20AC;&#x2122;s photos of three mule deer was published in the 2007 Saskatchewan Fishing and Hunting Guide. The photo layout covered two thirds of the page and included Glazierâ&#x20AC;&#x2122;s name and address. â&#x20AC;&#x153;The three mule deer bucks photo was taken in the summer of 2006, south east of Bienfait, right by the spill piles,â&#x20AC;? she said. â&#x20AC;&#x153;We were coming home from a day of ATVing in the Roche Percee Valley with a visitor from Oman, who works at my ďŹ ancĂŠâ&#x20AC;&#x2122;s company.â&#x20AC;?

Meanwhile Glazier hopes her latest nature photographs will make it into the 2009 corporate calendar. The deadline was August. 15.

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PIPELINE NEWS September 2008

Farm and rig hands take this course Éş Page C11 â&#x20AC;&#x153;Our goal is to continue to improve the standards and improve the type of operator heading out in the workplace and promote the safety aspect .We are working with SGI and a number of organizations to increase the complexity and the requirements for a driver to turn out a better safer operator.â&#x20AC;?

Commercial truck operators must comply with the National Safety Code and provincial regulations that include driver, vehicle and operational related safety regulations.

Adacsi-Cooke says the advantage for students taking driver training at Weyburn is that they can learn close to home and drive where thereâ&#x20AC;&#x2122;s less traffic than Regina. â&#x20AC;&#x153;All of the training is in-truck except for the 10-day program.â&#x20AC;?

Typically, a class involves two students and a driver instructor who start the day with vehicle inspections and discussions about matter like the safe transportation of dangerous goods and regulations. â&#x20AC;&#x153;The hardest thing for a new driver to learn is the shifting,â&#x20AC;? said McQuiod. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s like riding a bike. Once you get it, you get it. The shifting, the coordination and the timing it takes are usually the biggest obstacles and being able to integrate that with watching traffic and driving defensively.â&#x20AC;?

The insurance industry holds drivers to a two year experience level before they can drive on their own, but McQuoid said, â&#x20AC;&#x153;The new driver might be employed in a different type of job until they can mentor him and get him more experience.â&#x20AC;?

STA and southeast college offer all levels of oilfield safety training from H 2S, ground disturbance, First aid, CPR, WHMIS and specialized safety training for well sites like BOP (blowout prevention) and safety regulations. â&#x20AC;&#x153;Our safety classes are full right through the summer months this year,â&#x20AC;? said Melle. â&#x20AC;&#x153;One that has been really popular lately is the new Occupational Health and Safety regulations that came down for powered mobile equipment and receiving certification.â&#x20AC;?

C15

Training Opportunities

ESTEVAN SAFETY COURSES - SEPTEMBER 2008 CPR/1st Aid - Sept. 8-9; 13-14; 23-24 CPR/1st Aid (Carnduff ) - Sept. 15-16 CPR/1st Aid Re-Cert - Sept. 18 ConďŹ ned Space - Sept. 11 ConďŹ ned Space (Carnduff ) - Sept. 19 Ground Disturbance - Sept. 10 Fall Protection - Sept. 27-28; Sept. 30 - Oct. 1 Ground Disturbance Train the Trainer - Sept. 11-12 Safety Mgmt. & Reg. Awareness for Wellsite Supervision - Sept. 22-24 Safety Mgmt. & Reg. Awareness for Wellsite Supervision Refresher - Sept. 25 Safety Program Development (COR) - Sept. 30 & Oct. 1 H2S Alive - Sept. 3; 25 H2S Alive (Carnduff ) - Sept. 17 H2S Alive (Redvers) - Sept. 29 TDG/WHMIS - Sept. 9 TDG/WHMIS - (Carnduff ) - Sept. 18 Detection & Control - Sept. 26 Rig Rescue - Sept. 29; Oct. 2 Call us if you need a class set up just for you.

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C16

PIPELINE NEWS September 2008

Welder has 33 years experience :LFNKDP¶V :HOGLQJ GRHV WKH WULFN

By Stephan Burnett Shaunavon - If you want something welded Dave Wickham is the guy to talk to.

With 33 years experience in the Dave Wickham is a pro with19 year of independent experience working on his own through his company Wickham’s Welding.

Basically, the business is involved with oilfield pressure pipeline welding, general fabrication and repairs, says Wickham.

“Once the drilling is done we do a lot of completion work,” he says.

On a two-battery site, Wickham’s company will also prefab the pipelining to fit.

The pipes take the oil from the pump jack or well bore and passes it on through to the battery site. On a two-battery site the oil flows over top on one battery into the next, creating a cleaning system.

“It’s basically like a settling process,” says Wickham.

“The pipe is all welded together for pressure and all the welds have to be x-rayed,” he explains.

The company has three employees right now with Wickham working with his son and a helper.

“We also do general repairs on pump jacks and tanks and replace spools, which have flanges on each end and pipe in the middle. So we take the old one out and put a new one in,” he says.

The company also looks after the battery site when they have leaks out in the field and puts pieces in to correct any errors.

Wickham adds he’s never seen activity levels in the oilfield as busy as it is right now.

“They’ve found fields down here with the lower zone; they’re going deeper and from there they are using horizontal drilling and the recovery is better,” he says.

Wickham’s Welding also employs a couple of welding trucks; one has a three-tonne picker on it.

“That’s what we use for heavier piping so we don’t have to handle it by hand,” he says.

With 33 years in the business you might think

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that Wickham is ready to retire but he says that’s not the case.

“I’m going to go for a few years yet. I think I’ve got about 10 years to go. I’m enjoying it and I enjoy working with my son,” he says.

As for the future in the Shaunavon region, Wickham said after talking with many workers in the field the collective thought is that the current push will last for at least the next two to three years.

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PIPELINE NEWS September 2008

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C18

PIPELINE NEWS September 2008

Penn West busy in southwest Sask.

Shaunavon - Penn West Energy Trust is a busy company in the southwest portion of Saskatchewan with a program that will see 23 wells drilled in the Shaunavon region this year.

Allan Bertram is Penn West’s development manager for south-

west Saskatchewan, who reports that by mid-August the company had14 wells drilled with another nine left to go.

“We might squeeze in another one or two at the end of the year and that depends on how fast the drilling rig goes, and they’re all horizontal

wells,” he says.

The wells that are being drilled lie west of Shaunavon, “We just finished a three well pad there,” says Bertram, explaining that in this drilling operation Penn West is at times using the same pad and drilling three wells on

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one lease from the same pad.

“It takes 10 days to drill the well and approximately another 10 days for completion and then we’ll move the drilling rig north of Shaunavon … we’ll drill around three wells there and move down to Dollard and drill four wells down there and then it will go to Rapdan and Eastbrook which is getting close to the US border. We’re in the early stages there and depending on results we may vary how many wells we drill there. Everything is contingent on results,” he says.

The area is core to Penn West’s interests with the operation moving in three stages.

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the areas are drilled up fully, Bertram explains.

“In the Leitchville area we are in the second phase when we delineate the pool to see how big it is and how where the edges are and in every other area we are in the first stage,” he says.

The overall investment for the company in the Shaunavon region alone is probably in the region of $46 million, says Bertram. The company has been busy within the region since the beginning of the year, taking sometime off for breakup.

Company progression Penn West has been in southwestern Saskatchewan for many years, says Bertram.

“We have an office in Gull Lake and extensive lands holdings in north of Gull Lake,” he explains.

In January,Penn West completed a merger with Canetic Resources Trust creating North America’s largest conventional oil and gas energy trust.

Canetic had land holdings from Gull Lake south, says Bertram, adding that people in the Shaunavon region are probably more familiar with the Canetic name then they are of Penn West.

Facility construction Along with an ag-

gressive drilling program and the January merger the company is also in the midst of constructing a $15 million battery facility four kilometers north and three kilometers west of Shaunavon.

“It will be a brand new modern oil battery with a gathering system and pipelines in the ground,” Bertram explains.

The facility will handle 2,200 barrels a day of oil and 6,290 barrels of water. It will also have six tanks with capability to truck oil in and out.

“The estimated startup is January 2009,” says Bertram.

The facility will also include an oil treater, a lab and a facility to inject water back into the ground, thereby reducing trucking requirements.

The facility will also have a gas flaring system but because the amount of gas in the oil is very low, most of the byproduct gas will be used within the facility itself.

“This facility includes a lot of underground pipelines that will connect all the oil wells,” says Bertram, adding that while construction will start moving the dirt in late summer, the heavy equipment probably won’t start arriving until October or November.

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PIPELINE NEWS September 2008

C19

Research assures more boom times ahead Regina â&#x20AC;&#x201C; The next oil boom is already under way thanks to innovative enhanced oil recovery technologies being developed at the Petroleum Technology Research Centre at the University of Saskatchewan.

One of those projects is the ongoing $80 million international underground injection and storage of C02 in Encanaâ&#x20AC;&#x2122;s Weyburn fields and Apache Oilâ&#x20AC;&#x2122;s Midale fields. The project was launched in 2000 and is in its final phase (read August Pipeline for Encanaâ&#x20AC;&#x2122;s role).

A second new project called the JIVE project ( Joint Implementation of Vapour Extraction) aims to research ways to enhance the recovery of heavy oil. Both projects are supported financially by the oil and gas industry.

JIVE is a $40 million program with a goal to develop, demonstrate and evaluate solvent vapour extraction (SVX) processes for enhanced oil recovery from heavy oil reservoirs in western Canada.

Currently, only five to 15 per cent of heavy oil reserves are recovered in western Canada and forecasts for heavy oil production show a reduction of 50 per cent over the next decade unless new technologies are applied.

SVX technologies, being developed through JIVE, could potentially increase recovery rates anywhere from 30 to 50 percent. That translates into five to 10 billion barrels of oil that otherwise would not be recovered in western Canada.

The Pipelines News recently spoke with Kyle Worth, the project manager of the JIVE project who provided an overview of PRTC enhanced oil recovery research in this question and answer interview.

Q: What does PPRCâ&#x20AC;&#x2122;s research mean to Enhanced oil recovery and C02 storage technology are the focus of rethe oil and gas industry? search at the Petroleum Technology Research Centre in Regina. Kyle Worth is the centreâ&#x20AC;&#x2122;s manager of a heavy oil enhancement project called A: The objective of research at PTRC is to JIVE that is developing new ways to recover up to 50 percent of heavy oil come up with new techniques and technology reserves in the province in the coming years. to enhance oil recovery for light and heavy oil in western Canada.

Q: Why the research necessary?

A: As time goes on, itâ&#x20AC;&#x2122;s harder to recover oil so new techniques allow oil companies to continue to produce at the same rate they are producing today.

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PIPELINE NEWS September 2008

Interview with JIVE project manager

Kyle Worth is the project manager of a heavy oil enhancement project called JIVE.

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Q: Is the research lab based or field based?

A: It’s a combination. We start in the lab so we have a foundation of research. As that research grows and expands, you can take it to a demo or a pilot or a commercial scale in the field. You might start off with a simple lab study to investigate a technique or an idea that someone may have and then you may go to a bench scale model of a lab scale model.

If the results are positive or optimistic, you might go into a pilot using that technology or idea. If that proves to be economic you can extend it to a commercial scale project.

Q: What is your main light oil research project?

A: A big research component would be the C02 EOR and storage in the Weyburn-Midale area. That is the new technique that we are investigating. Q. What is the status of that C02 project?

A: The research component is in the final four years. Basically they are trying to shore up and verify the placement of the C02 and the longterm reactions within the reservoir. Also the project is helping the government build policy and regulations to monitor the C02 EOR project.

Q: Can you briefly describe the heavy oil enhancement project

called JIVE? A: There are three companies involved – Husky Energy, Nexen Inc., and Canadian Natural Resources Ltd. They each have a pilot that they have implemented and are sharing within the project. It’s about a $9 million research project on top of the pilot project that they have contributed to.

Q: What are they using to enhance the recovery of heavy oil?

A: They are using a solvent to dilute the oil and to make it less viscous to hopefully recover more oil.

Q: Is C02 involved with this process as well?

A: They aren’t using C02 at this point. They have started with combinations of propane, butane and methane. There are some positive results to date and potentially we will move forward using C02 as C02 methane or C02 butane or C02 propane as the choice solvent in the future.

Q: Do you do any product or facilities research?

A: The goal is anything that can enhance oil recovery and if it has an environmentally friendly spin on it, it’s beneficial to the organization and to the resource. The research is based on the reactions in the reservoir and how to make it less viscous. We don’t do a lot of facility optimization or any field operations research.

PTRC is a not-forprofit research and development organization funded by the provincial and federal governments along with industry sponsors for separate projects. Most of the research is done by the University of Regina, the Saskatchewan Research Council, the University of Saskatchewan, the University of Alberta and the University of Calgary.

PIPELINE NEWS September 2008

C21

Goulet Trucking reports a very busy year &RPSDQ\ KDXOV LQWR LWV RZQ WHUPLQDO VKLSSLQJ FOHDQ RLO QRUWK Dollard - At Goulet Trucking the company is keeping very busy hauling mostly crude oil and non-potable water but the company also has clean fresh water trucks as well as a vacuum truck.

Tracy Bredahl is the dispatcher/bookkeeper and oďŹ&#x192;ce manager for Goulet Trucking.

Bredahl says the company has close to 12 trucks overall. â&#x20AC;&#x153;We have tri-axles, crude oil trailers, fresh water tri-axels as well as tandem fresh water trucks and vac trucks,â&#x20AC;? she says.

The company was started by Ray Goulet who sold the business in the early 1990s to Jeanne Peterson and her husband who has since passed away in a vehicle accident.

With a lot of companies drilling in the area, Bredahl says the business is seeing one of its busiest years ever. â&#x20AC;&#x153;We work all the way from Consul to Gull Lake,â&#x20AC;? she says. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s the busiest Iâ&#x20AC;&#x2122;ve ever seen it and weâ&#x20AC;&#x2122;ve been here since 1991,â&#x20AC;? she says.

With busy times comes demands for additional workers and Bredahl says Goulet is looking for additional drivers but adds â&#x20AC;&#x153;thereâ&#x20AC;&#x2122;s a core group of four or ďŹ ve who have been here for quite awhile.â&#x20AC;?

Overall the company employs close to 15 people.

Along with the truck ďŹ&#x201A;eet the company also owns a its own terminal. â&#x20AC;&#x153;We have a clean oil terminal that we own connected to the Plains Pipeline, the next closest is up at Gull lake and we have 24hour service,â&#x20AC;? she says. â&#x20AC;&#x153;My bossâ&#x20AC;&#x2122;s husband set it up before he passed away in 1993.

Koch Oil used to have a terminal set up and they closed it. They decided it wasnâ&#x20AC;&#x2122;t worthwhile and bossâ&#x20AC;&#x2122;s former husband decided we would build our own, so we tied in, bought four tanks and

set them up and weâ&#x20AC;&#x2122;ve been shipping clean oil ever since,â&#x20AC;? says Bredahl. â&#x20AC;&#x153;The oil gets shipped on the Plains Pipeline but goes north from here,â&#x20AC;? she says. â&#x20AC;&#x153;The pipeline was already there, all we did was set up four tanks and set up. Itâ&#x20AC;&#x2122;s our terminal and we do all the marketing and the books and other than the odd

time, for the most part weâ&#x20AC;&#x2122;re the only ones that haul into it,â&#x20AC;? she says.

With fuel and inputs costs rising Bredahl adds the company is doing everything it can to keep costs down. â&#x20AC;&#x153;We have a full time mechanic on staďŹ&#x20AC; and we do all our own work,â&#x20AC;? she says. â&#x20AC;&#x153;But we have to have fuel and we try to raise rates to cover costs. We

The company also donâ&#x20AC;&#x2122;t have a fuel surcharge yet. Weâ&#x20AC;&#x2122;ve been does all its own safety thinking about it but inspections. â&#x20AC;&#x153;Our shop is certiwe havenâ&#x20AC;&#x2122;t done it yet,â&#x20AC;? ďŹ ed to do safety inspecshe says.

tions. The trucks have to be certiďŹ ed every six months and the trailers have to be done every year,â&#x20AC;? she says.

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C22

PIPELINE NEWS September 2008

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C24

PIPELINE NEWS September 2008

Boom amazes FAST Trucking founder

FAST Trucking Service Ltd. is a family run business started by 75 year-old Tony Day who comes to work every day. His son Dennis Day is the general manager. Tony completed this custom built this bed truck with big tires in 1986.

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Carnduff – When Tony Day started FAST Trucking Service Ltd. in Carnduff with his wife Vi in 1957 to move rigs, he anticipated some ups and downs, but the power of the Bakken play has taken him by surprise.

“I never thought I’d see this. In other booms we had 65 rigs and we’ve got 75 now, but you move them a lot quicker. They drill a well a lot faster, so there’s more wells drilled than in past booms,” he said.

Tony launched his trucking business with a 1955 Chev water truck and over the years, he’s seen the loads and the trucks get progressively larger.

“The fewer loads you have, the quicker you move the rig,” he explained. “It’s cheaper to move in one load.”

One of the biggest trucks in the company’s yard is a huge bed truck with wide tires that Tony started to custom build in ’85.

“I built it because it was muddy in ’85 and I thought to get to where leases were soft I had to build something to get the rigs moved,” he said.

He called it the sow and has given nicknames to other trucks he built such as Gerta, Lucky, Sweet Pea, Pole Cat and Grave Digger.

At 75, Tony still comes to work every day as FAST’s president as does Vi who manages the permit side of the rig moving business.

“It’s rewarding to see your company get bigger and have your family working with you,” said Tony. “We have been approached by several companies to buy us but we don`t want to sell. We’ll just keep it in the family.”

Tony’s son, Dennis is the general manager while another son Larry works in dispatch. His daughter Linda handles the books.

Asked where the business is going, Tony said, “I don’t know. I’m surprised we are still operating as well as it has been going. It’s going real good and we are expanding because there is more work, but I don`t know how much more there’ll be.”

From the beginning, Tony and Vi had held strong attachments to Carnduff and have donated their time, money and materials to schools, the library, the swimming pool and the golf course to name a few causes.

“We contribute to anything that needs contributing to. We try to help them out. It’s nice to be able to give rather than take,” he said.

Dennis added, “Tony and Vi like to donate stuff that has to do with kids. Hockey is a big thing for us too. Tony made a large donation to purchase a Zamboni for the rink a few years ago.”

Dennis and Larry also organize an annual Boxing Day employee hockey tournament for the “FASTLY Cup.”

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C25

Jacar boasts a Ă&#x20AC;eet of 88 trucks Richmound - Jacar Energy Services Ltd. is the one-stop shop for oilfield hauling with 88 units at its disposal throughout the chain.

Currently, the company has offices in Richmound, Taber, Medicine Hat, Pincher Creek and Cayle.

Jacar has over 100 employees working for it, with 21 employees based in Richmound alone.

Trevor Simmonds, operations manager of the Richmound to Medicine Hat region says the company started up 12 years ago and is now owned within the Mullen Group. â&#x20AC;&#x153;We have sour sealed units, pressure trucks, and hot oilers. We also have tank trucks and we have vac trucks steamers and weâ&#x20AC;&#x2122;ve diversified in all aspects of oilfield hauling and cleaning,â&#x20AC;? he says.

The sour sealed units lets you haul dangerous goods or anything with a high H2S content or anything flammable such as condensate. â&#x20AC;&#x153;Once youâ&#x20AC;&#x2122;re loaded your vents are closed and in case of an accident it will not leak,â&#x20AC;? says Simmonds.

Pressure trucks are used to pressure test wellheads, casing and to fill pipelines. Anything to do with pressure. â&#x20AC;&#x153;Theyâ&#x20AC;&#x2122;re also used quite a bit for drill outs and for coil tubing units as well,â&#x20AC;? says Simmonds.

A hot oiler will hot oil service rig rods and is used for de-waxing wells and for heating water for fracturing. â&#x20AC;&#x153;The optimal setting is about 22 degree Celsius but it can go up to 90 degrees Celsius and we use a 5 million btu burner on them,â&#x20AC;? says Simmonds.

The company also has tri-axle units at its disposal and is used to haul water for fracs or produced water to disposal. â&#x20AC;&#x153;The vac truck does everything. It will be used for sucking up fluids on location with stack tanks on sewers blow back tanks and anything that goes to disposal,â&#x20AC;? says Simmonds.

Simmonds adds he was pretty young when he started in the business. â&#x20AC;&#x153; I started much before I should have in coil tubing when I was 17 years old, basically that was

about 22 years ago and Iâ&#x20AC;&#x2122;ve done some cementing gas wells and oil wells cementing and did some time overseas in Libya doing the same thing,â&#x20AC;? says Simmonds, who has been with Jacar for five years now.

Simmonds says the advantage of working with Jacar is their diversified fleet. â&#x20AC;&#x153;With us because we are so diversified, we can do it all, so when you come to us instead of having to line up three or four services we can do it all for you,â&#x20AC;? he says.

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C26

PIPELINE NEWS September 2008

Family is bedrock for oil industry

Ed and Keith Lowden pose in this family photograph. Ed said he was always concerned that his son was going into the petroleum industry but laughs, â&#x20AC;&#x153;I guess he did okay.â&#x20AC;?

Photo submitted

Â&#x201E; By Brent Fitzpatrick Wheat City Journal Manitoba - The petroleum industry is unique for many reasons: it is hard, diďŹ&#x192;cult work

that only a few people have the necessary skills to embrace and survive in, however, it can also be ďŹ nancially rewarding, and it is enjoying almost unparalled growth.

One aspect of the industry that it shares with others like agriculture, is the strong family commitment to itâ&#x20AC;&#x201C;â&#x20AC;&#x201C;often the children follow in their parents footsteps,

into steel-toed boots and step onto the derrick. â&#x20AC;&#x153;I started right out of high school,â&#x20AC;? said Terry Day of Days Operating Limited. â&#x20AC;&#x153;I applied for a job when I was 19 years-old. That was in 1966.â&#x20AC;? Dayâ&#x20AC;&#x2122;s father was a farmer, and Terry is now the third generation that have worked the land near Kola. His two sons, Brent and Troy are the fourth. The farm has been a stabilizing keel for Day in the oil industryâ&#x20AC;&#x2122;s volitility. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;ve been on the land for 100 years,â&#x20AC;? explained Day. â&#x20AC;&#x153;I just started farming right away. Then I got into the oilďŹ eld, then into farming, then back into the oilďŹ eld.â&#x20AC;?

Both of his sons are working with him on his farm, while the younger, Brent is a full-time employee of Days Operating Limited. â&#x20AC;&#x153;I would say it is a dad-son,â&#x20AC;? relationship said Terry of employing his son Brent. â&#x20AC;&#x153;But you have to have a co-worker

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to co-worker one as well.â&#x20AC;?

Terry Day said the relationship is a little more easy-going. â&#x20AC;&#x153;When you are working with family it is diďŹ&#x20AC;erent than with someone else.â&#x20AC;?

According to Brent, his father is beginning to allow the children some of the power when it comes to making the business decision. â&#x20AC;&#x153;He basically makes the decisions,â&#x20AC;? said Brent. â&#x20AC;&#x153;But some are starting to go to my brother and I. But, dad makes the important decisions.â&#x20AC;?

Ed Lowden is one of the industry veterans, starting his career in the booming oilďŹ eld climate of the 1950â&#x20AC;&#x2122;s. Like Day, Lowdenâ&#x20AC;&#x2122;s father also worked the land on a farm near the small community of Goodlands, Manitoba. â&#x20AC;&#x153;I was on the farm, but there was no work for me there,â&#x20AC;? Lowden laughs. â&#x20AC;&#x153;So, I went out and got a job.â&#x20AC;? â&#x20AC;&#x153;I started out with a seismograph crew in Oak Lake,â&#x20AC;? explained Lowden. â&#x20AC;&#x153;Then, the oil patch was lookingt for men in the fall so I went to work for Dowell.â&#x20AC;?

Ed Lowden wasnâ&#x20AC;&#x2122;t sure he wanted his son to be in the same industry as he spent his career.

The reason for that hesitation was his family. â&#x20AC;&#x153;It is not a job for a good family life because you were out working most of the time.â&#x20AC;?

His son, Keith Lowden, did get started in the industry and is now the director of Manitoba Petroleum Branch. â&#x20AC;&#x153;I remember hanging out at the shop and sweeping ďŹ&#x201A;oors,â&#x20AC;? said Keith. â&#x20AC;&#x153;I thought that was the best place in town. I remember getting to go with him on some well abandonments, cement jobs and the occasional frac.â&#x20AC;?

For a youngster, this kind of rough and tumble work was like working in a dream. â&#x20AC;&#x153;I thought it was terriďŹ câ&#x20AC;&#x201C; â&#x20AC;&#x201C;we didnâ&#x20AC;&#x2122;t have to bath and you could sleep in a truck! That was great for a twelve year old!â&#x20AC;?

Would Keith Lowden want the same life for his sonâ&#x20AC;&#x201C;â&#x20AC;&#x201C;a third generation in the oil-

ďŹ eld? â&#x20AC;&#x153;Yes I think there are some great opportunities in the industry.â&#x20AC;?

Those opportunities are now â&#x20AC;&#x2DC;morphing,â&#x20AC;&#x2122; according to Lowden, with new technologies being introduced at almost every turn. He has told his son that a degree in geology would be a great asset with an interesting side-beneďŹ t. â&#x20AC;&#x153;Plus if you are a geologist there are little expectations on your behavior!â&#x20AC;? â&#x20AC;&#x153;I would think they are looking at the parents as role models,â&#x20AC;? explained Dr. Barbara Gfellner, a developmental psychologist at Brandon University. â&#x20AC;&#x153;They are seeing the end result,â&#x20AC;? she said of the family involvement in the industry. That may include not wanting for anything, and spending a signiďŹ cant amount of time in the outdoors. â&#x20AC;&#x153;Theyâ&#x20AC;&#x2122;ve had a good life growing up. They are aware that it is hard work, but doesnâ&#x20AC;&#x2122;t require a lot of education.â&#x20AC;?

For many young people, the long term investment into education is one that simply is just too drawn out. â&#x20AC;&#x153;It takes a long time before you see the results of it (education) as far as income and prestige go.

Plus there can be a lot of debt.â&#x20AC;?

Many though, step right into the oil industry out of high school because itâ&#x20AC;&#x2122;s familiar to them. â&#x20AC;&#x153;It is what they know,â&#x20AC;? explained Gfellner. â&#x20AC;&#x153;There is a security to that. It feeds into ones self-concept and selfesteem because they are sure of themselves (in the industry).â&#x20AC;?

For people like Keith Lowden, his father acted as a catalyst into the industry for him. But it was the industry itself that kept his interest piqued and helped steer his career, which he feels is one of the best jobs anywhere. â&#x20AC;&#x153;Actually the best job in the industry would be that of a mineral holder!â&#x20AC;? Lowden explained with a laugh. â&#x20AC;&#x153;I didnâ&#x20AC;&#x2122;t have minerals and my bass playing doesnâ&#x20AC;&#x2122;t pay well, so this has been a good run! The work is interesting and there are some unique characters in this industry.â&#x20AC;?

PIPELINE NEWS September 2008

Â&#x2021; 'LUHFWLRQDO 'ULOOLQJ Â&#x2021; ([FDYDWLRQ DQG %DFNKRH 6HUYLFH Â&#x2021; 5RDG %XLOGLQJ DQG *UDGLQJ Â&#x2021; *UDYHO +DXOLQJ Â&#x2021; :HOGLQJ DQG )DEULFDWLRQ Â&#x2021; +\GURYDF 6HUYLFH Â&#x2021; )ORZOLQH &RQVWUXFWLRQ Â&#x2021; /HDVH 3UHSDUDWLRQ DQG &OHDQ 8S Â&#x2021; 0DLQWHQDQFH DQG )DFLOLWLHV &RQVWUXFWLRQ

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Please call, fax, or email your resume to:

Prairie Mud Service Estevan, SK 306.634.7799

.YLN *V\ZPUZ *VUZ[Y\J[PVU 3[K Sinclair, MB Melita, MB Carnduff, SK 204.662.4030 204.522.3534 306.482.5107

Fax: 306-482-5256

www.gregcousinsconstruction.com

DISPATCHER REQUIRED Â&#x2021; +iJKl\ competitiYe JuaUanteed salaU\ Â&#x2021; da\s on da\s off scKedule Â&#x2021; ComputeU knoZleJe oUJani]ational customeU Uelation skills a must Â&#x2021; Some expeUience necessaU\ Email oU fax Uesume to Len 0ostoZa\

ssl len#sasktel net 3 33

PIPELINE NEWS Saskatchewanâ&#x20AC;&#x2122;s Petroleum Monthly

Reporter/Photographer Location: Lloydminster or Estevan, Saskatchewan

If you are looking for an exciting job where you are in control of your own schedule - this is the job for you.

Working for Pipeline News, Saskatchewanâ&#x20AC;&#x2122;s premier petroleum monthly newspaper, is a job which allows you to report on the people and companies who are driving Saskatchewanâ&#x20AC;&#x2122;s economy.

The expected amount of copy is similar to a weekly newspaper, however weekends and evening work is rare.

QualiďŹ cations: â&#x20AC;˘ The successful applicant will be a self-motivated journalist with a journalism diploma or degree or at least ďŹ ve years of experience in newspaper journalism. â&#x20AC;˘ The successful applicant will also be ďŹ&#x201A;uent in CP style and be handy with a digital camera (provided). â&#x20AC;˘ A reliable vehicle and a valid driverâ&#x20AC;&#x2122;s license are a must. â&#x20AC;˘ All resumes are appreciated, however only those chosen for an interview will be contacted.

Please send resume, samples of your work (in PDF), and a cover note - stating you found this job by September 15, 2008 to: Brant Kersey E-mail: brant_kersey@yahoo.ca.

Looking to Ă&#x20AC;ll the following Full-Time positions: CLASS 1A SHORT HAUL DRIVERS: Successful applicants will possess a willingness to learn the safe and efĂ&#x20AC;cient handling and transportation of oil well drilling chemicals in S.E.Sask.

- Valid Class 1A driverâ&#x20AC;&#x2122;s license and abstract are required.

- Starting salary will be based on general oilĂ&#x20AC;eld experience and ability.

- Other assets would include: Any mechanical experience.

Forklift training, H2S, WHMIS, TDG and Defensive Driving certiĂ&#x20AC;cates.

Interested applicants can forward resume to Blane Fichter at:

Email: bĂ&#x20AC;chter@sasktel.net

Fax: 306-634-6694

2SSRUWXQLWLHV

Looking for a New Career?

Join Our Team Today!

C27

or drop off at the ofĂ&#x20AC;ce at 738-6th Street, Estevan

Progressive Oilfield Company looking for

Semi Vac Operators Scheduled days off.

Health Benefits.

Please fax resumĂŠ & abstract

to (780) 808-6393

EMPLOYMENT OPPORTUNITY

JOURNEYMAN HEAVY DUTY/AUTOMOTIVE OR MILLWRIGHT Required for LLOYDMINSTER LOCATION

Experience on PD pumps, PC pumps, centrifugal pumps, air systems and mechanical seals would be preferred.

May consider 3rd or 4th year level. Successful applicant must have H2S Alive, First Aid and provide current driverâ&#x20AC;&#x2122;s abstract.

Apply to:

Box 11798, 5901 - 63 Avenue Lloydminster, AB T9V 3C1 PH (780) 875-0650 Fax: (780) 875-0645 Email: brett@wildrowspump.com :H WKDQN DOO DSSOLFDQWV IRU WKHLU LQWHUHVW KRZHYHU RQO\ WKRVH VHOHFWHG IRU DQ LQWHUYLHZ ZLOO EH FRQWDFWHG

PIPELINE NEWS September 2008

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RENEGADE Renegade Oilfield Construction Ltd. Offices in Estevan, SK & Redcliff.

WE ARE CURRENTLY HIRING

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Â&#x2021; PIPEFITTERS Â&#x2021; SUPERINTENDENTS Â&#x2021; TRACKHOE OPERATORS Â&#x2021; RUBBER TIREHOE OPERATORS Â&#x2021; LABORERS

&UHZ )RUHPDQ 3LSHOLQH )RUHPDQ &UHZ DQG 3LSHOLQH /DERXUHUV Â&#x2021; $SSOLFDQWV ZLWK H[SHULHQFH VDIHW\ WLFNHWV DQG YDOLG GULYHUŇ&#x2039;V OLFHQVH SUHIHUUHG Â&#x2021; *URXS 5563 3ODQ

Pipeline & facility experience necessary, top wages and benefit pkg.

Fax resume to: 403-548-3593 EMAIL: renegadeoil@telus.net

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Prairie Petro-Chem ESTEVAN, SK. 634-5808

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Techmation Electric & Controls Ltd. is one of Western Canadaâ&#x20AC;&#x2122;s leading Electrical & Instrumentation companies focusing on the energy sector. We pride ourselves onleadership, technical expertise, integrity and customer service that is second to none. We are currently accepting resumes in the following Region Estevan & Weyburn, for the following positions.

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Electrical & Instrumentation Journeymen & Apprentices Techmation is looking to hire individuals to report directly to the District Manager of Operations.

The following would be an asset: Â&#x2021; Development of new business prospects Â&#x2021; Servicing of existing clients Â&#x2021; Assessment of client needs and the recommendation of appropriate products and / or services Â&#x2021; On-going customer support

â&#x20AC;&#x153;Pipeline on Wheelsâ&#x20AC;?ÂŽ Class 1 Company Drivers for Fluid Haul to meet our growing demand

The successful candidates must have excellent communication skills (both written and verbal), and be capable of working in a customer oriented service environment.

Heavy Crude Hauling LP is one of the leading providers of production services to the heavy oil industry in the Lloydminster area. We are committed to creating a Quality Work Environment, where our people can return home from their work shifts injury and incident free.

In addition to a competitive salary, beneĂ&#x20AC;t package, RSP plan, pension plan, and performance bonuses, we offer a dynamic high paced team environment.

We offer competitive wages, beneĂ&#x20AC;t package, bonus program and year round work.

QualiĂ&#x20AC;ed applicants are invited to fax or email their resume: Attention: Gerry Martel Fax (306) 634-4398 Ph. (306) 634-5664 *VTTP[[LK ;V 8\HSP[` :HML[` :LY]PJL

Interested and qualiĂ&#x20AC;ed applicants should forward resumes to Fax : (780) 875-5825 or E-mail: leversen@heavycrudehauling.com

Looking to Ă&#x20AC;ll the following Full-Time positions: LONG HAUL DRIVER: Successful applicant will possess experience in the safe & efĂ&#x20AC;cient transportation of HAZMAT goods to and from larger centers.

- Valid Class 1A driverâ&#x20AC;&#x2122;s license and abstract are required.

- Previous HAZMAT experience is preferred and driver must be able to obtain FAST Commercial Driver status.

- Other assets would include: Any mechanical experience. Forklift training, H2S, WHMIS, TDG and Defensive Driving certiĂ&#x20AC;cates.

- Position involves transportation of HAZMAT products to and from Estevan and various locations in central USA. - Trips are mainly during week days and home on weekends.

- Starting salary will be based on experience & ability.

SHOP MECHANICS/WELDERS: Looking for individuals with a general knowledge in mechanical repair and basic welding ability.

- Starting salary will be based on experience & abilities.

- Other assets would include: Knowledge of Ă uid transfer pumps & related equipment, heavy truck and trailer repair knowledge, Forklift & WHMIS training certiĂ&#x20AC;cates.

Interested applicants can forward resume to Blane Fichter at:

Email: bĂ&#x20AC;chter@sasktel.net,

by Fax: 306-634-6694 or drop off at the ofĂ&#x20AC;ce at 738-6th Street, Estevan

GREAT PEOPLE.

GREAT OPPORTUNITIES.

HD Management Inc. is a progressive Saskatchewan based firm that provides Contract Labour to the growing Potash industry located in Belle Plaine, SK. If you are interested in joining our team for a challenging and rewarding career in the Potash Industry we are seeking entry level and experienced Service Rig personnel to fulfill a variety of positions including: Service Rig Operators, Derrick Hands and Floor Hands.

Trucking Estevan Ltd. 88 Devonian Street

Accepting Applications For:

Drivers & Swampers Phone: 306-634-4041 Fax: 306-634-4040

Key responsibilities vary dependent upon the position include but are not limited to: Â&#x2021; %asic knowledge of equipment and general procedures of a service rig. Â&#x2021; :illingness to follow instructions, work well with team members and be physically fit. Â&#x2021; /earn and adhere to all *overnment and Company safety regulations and procedures pertaining to your work site. Â&#x2021; Contribute to proper service and preventative maintenance of the service rig. Â&#x2021; The ability to troubleshoot and be mechanically inclined is an asset. Â&#x2021; Requires a valid Class Drivers /icense.

An HD Management Career offers successful applicants the following: Â&#x2021; Â&#x2021; Â&#x2021; Â&#x2021;

A comprehensive and competitive benefits package A safe working environment 9arious employee incentive programs 1ecessary training to successfully perform required work Please send a detailed resume of your work experience by fax or email attention to:

Attention: Phone: Fax: Email:

Garry Dick 306-345-8438; Cell 306-631-4084 306-345-8444 Gary.Dick@mosaicco.com

Thanks in advance for your interest. Only applicants chosen for interview will be contacted.

4 22 222Â&#x2021;

C28

PIPELINE NEWS September 2008

WELDER/ WELDERS HELPER/ LABOURER

Trucking Ltd.

PRESSURE AND SEMI VAC OPERATORS

Duties will include aluminum welding, shearing, braking, etc.

Full-time position available immediately. Willing to train and/or apprentice right candidate. Valid driverâ&#x20AC;&#x2122;s license required.

Drop off resume with references to: 1506 Sidney Street West Swift Current, SK Phone: (306) 773-3956 Fax: (306) 778-4044 Email: wheatlandmachine@sasktel.net

40229390Â&#x2021;08 15 08

Wheatland Machine Shop Ltd.

If you have oilĂ&#x20AC;eld experience and are an enthusiastic learner, join our growing team. We offer competitive wages, scheduled days, full beneĂ&#x20AC;t pkg. Class 3 or 1A, Safety tickets and experience preferred. Apply with current abstract to: 5204 - 63 Avenue (drop off) Lloydminster, AB or FAX: (780) 875-6799

C29

in BIGGAR, SK VIUYMVIW UYEPM½ IH TISTPI JSV XLI JSPPS[MRK TSWMXMSRW

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EMPLOYMENT OPPORTUNITY

Crew Foreman

Experienced FOR LLOYDMINSTER AREA

HYDROVAC OPERATOR & ASSISTANT www.suretuf.com PLASMA TABLE OPERATORS EXPERIENCED LABOURER Will train qualified candidates.

Applicants must have welding background.

Driverâ&#x20AC;&#x2122;s license required. Reliable, team player.

Wages depend on experience. Benefits available.

Performance bonuses.

Hydrodig Lloydminster is currently accepting applications for a full-time operator assistant interested in year round employment.

Related job experience and safety tickets an asset but not necessary.

Fax the following to (306) 285-3532 or email to lloydminster@hydrodig.com Â&#x2021; UHVXPH ZLWK UHIHUHQFHV Â&#x2021; GULYHUŇ&#x2039;V DEVWUDFW Hydrodig wishes to thank all applicants, however, only those selected for an interview will be contacted.

Only those to be interviewed will be contacted.

Apply in confidence to: Fax (780) 808-2689

High Card Pump & Mechanical Lloydminster Requires

Apprentic & Heavy Duty Mechanics Call Tony

780-205-8229 (PSOR\PHQW 2SSRUWXQLW\

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MUST: Â&#x2021; +DYH 9DOLG 'ULYHUV /LFHQVH %H $ 7HDP 3OD\HU Â&#x2021; 6DIHW\ 7LFNHWV Â&#x2021; 3LFNHU %REFDW ([SHULHQFH $Q $VVHW Câ&#x20AC;&#x2122;s OFFERS: Â&#x2021; 7RS :DJHV Â&#x2021; %HQHILWV 3DFNDJH Â&#x2021; 3HUIRUPDQFH %RQXVHV Â&#x2021; 6FKHGXOHG 'D\V 2II Â&#x2021; 2SSRUWXQLW\ )RU $GYDQFHPHQW Â&#x2021; & 2 5 6DIHW\ 3URJUDP Â&#x2021; $% 6. % 4 & Â&#x2021; 3UHPLXP (TXLSPHQW DUTIES: Â&#x2021; Daily Operation Of A Light Picker Truck Â&#x2021; Pipe-fitting & Construction

OILFIELD SERVICE LTD.

CONSULTING & CONSTRUCTION

Apply in confidence to: Fax (780) 808-2273

HYDROVAC SERVICES

Winterhawk Hydrovac Services requires Hydro Vac operators and Operators assistants for SouthEast Sask. Â&#x2021;:LOOLQJ WR WUDLQ Â&#x2021;&ODVV $ OLFHQVH DQ DVVHW Â&#x2021;6DIHW\ WLFNHWV UHTXLUHG

Call 421-5954

ELECTRICAL APPRENTICES & JOURNEYMEN REQUIRED Require safety certiĂ&#x20AC;cates & valid drivers licence.

Competitive wages and beneĂ&#x20AC;ts package.

Fax resume to 637-2181 or deliver to: 62 Devonian Street, Estevan, Sk.

NORTHRIDGE ENERGY DEVELOPMENT GROUP

Heavy Duty Mechanic Estevan/Lloydminster Branches Frontier Peterbilt Sales Ltd is an enterprising dealership for large trucks and trailers based in Estevan, Saskatoon, Regina and Lloydminster.

We are looking for full-time 3rd year, 4th year and Journeyman Service Technicians for our Estevan and Lloydminster branches.

We require people that are meticulous, results-driven and customer service oriented.

We offer an attractive remuneration that includes a competitive based salary and an employee benefits program.

Parts Representative Estevan We are also looking for a Parts Sales Representative for our Estevan branch.

The successful candidate will work closely with the manager and be part of a team overseeing the day-to-day operations, managing corporate accounts and developing effective marketing strategies.

PRIMARY DUTIES Work with Manager to: - Implement marketing programs and strategies for the parts department - Actively promote the sale of products to our customers - Maintain ongoing responsibility for customer service and provide problem resolution - Manage internal parts control functions, including order processing, documentation, quotations, pricing and record keeping - Control procurement, receiving, storage, handling and shipment of all parts stock to meet shipping schedules and customer requirements REQUIREMENTS - Excellent in prospecting and personal selling - Exceptional communication and strong analytical skills - Must be detailed oriented, organized, determined, ambitious and a team player - Preference will given to candidates with minimum of 2 years experience Qualified applicants are encouraged to submit resume and covering letter to:

Mark Thompson Human Resources Manager Email: mthompson@frontierpeterbilt.com Fax: (306) 244-2879

www.northridgeenergy.com Northridge Energy is a full service Engineering, Procurement, Construction Management company currently recruiting for the following position in our Estevan, SK office:

Project Engineer Main Duties Conduct research into the feasibility, design, operation and performance of oil and gas systems Plan and manage projects, and prepare material, cost and timing estimates, reports and design specifications for systems Supervise and inspect the installation, modification and commissioning of mechancial systems at construction sites or in industrial facilities Prepare contract documents and evaluate tenders for industrial construction or maintenance Supervise technicians, technologists and other engineers and review and approve designs, calculations and cost estimates.

Drafting Designer Main Duties: Operate computer-assisted design (CAD) and drafting workstations Develop and prepare design sketches Complete documentation packages and produce drawing sets Check and verify design drawings to conform to specifications and design data Write technical reports Develop and prepare engineering drawings, plans, diagrams or layouts from sketches Operate computer-assisted drafting equipment or a conventional drafting station Employment Requirements Completion of secondary school is required Completion of a two to three year college program in engineering design and drafting technology or in a related field is usually required for drafting and design technologists Please forward your resume to: Lance Fugate, Regional VP, Saskatchewan at lance.fugate@nedg.ca

C30

PIPELINE NEWS September 2008

5HVRXUFHV *XLGH FAST ACCURATE FRIENDLY SERVICE

Box 1708, Provost, AB T0B 3S0 #1 25 Wheatland Cres.

(780) 753-6601 Fax (780) 753-2004

Industrial Supply

â&#x20AC;˘ Downhole Tools

â&#x20AC;˘ Chain & Load Binders

â&#x20AC;˘ Wire Cable & Slings

â&#x20AC;˘ Nylon Slings

â&#x20AC;˘ Heavy Duty Truck Parts

â&#x20AC;˘ Ripper Teeth & Shanks

â&#x20AC;˘ Ag Supplies

â&#x20AC;˘ Cutting Edges

â&#x20AC;˘ Oilfield Clothing

â&#x20AC;˘ Filters

STAMPS & MARKING DEVICES Box 94 Lloydminster, SK/AB S9V 0X9 PH: 780-875-4878 FAX: 780-875-4809 EMAIL: rubberduck@telus.net

STAMPS STAMPS STAMPS Address stamps, Business Stamps, Corporate Seals, Oilfield Stamps, Specialty Crafting Stamps, French Stamps, Spanish Stamps and much much more...

OILFIELD HAULING LTD. Air Ride Winch Truck & Trailer %UXFH %D\OLVV Owner/Operator OfĂ&#x20AC;ce: 482-3132 Dispatch: 485-7535 Fax: (306) 482-5271 Box 178 Carnduff, Sk. S0C 0S0

JUSTIN WAPPEL - Division Manager 401 Hwy. #4 S. Biggar, Saskatchewan PO Box 879 S0K 0M0 Ph (306) 948-5262 Fax (306) 948-5263 Cell (306) 441-4402 Toll Free 1-800-746-6646 Email: jwappel@envirotank.com www.envirotank.com

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

Authorized Dealer

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

ArmorThane

M.E.T. OILFIELD CONST. LTD.

Industrial & Commercial Sandblasting, Soda Blasting & Painting

â&#x20AC;&#x153;All Your Construction and Maintenance Needsâ&#x20AC;?

SPECIALIZING IN: ENGINES, PUMP UNITS, UNIT INSPECTIONS, PIPE FITTING, TREATERS AND PRESSURE TICKET WELDING

Â&#x2021; Heavy Equipment Â&#x2021; Internal Tank & Pipe Linings Â&#x2021; Plant Maintenance Â&#x2021; 3 Portable Blast Units Â&#x2021; Soda Blasting Â&#x2021; 50â&#x20AC;&#x2122; Manlift Â&#x2021; 2 - 80â&#x20AC;&#x2122; Paint Bays

DEX BOISSON - Owner Lloydminster, Saskatchewan

Box 1605, Estevan, Sk. S4A 2L7 Cell. (306) 421-3174, (306) 421-6410, (306) 421-2059 Fax: (306) 634-1273

Phone: (306) 825-0401 Cell: (306) 821-7721

Specializing in well site and pipeline surveys Yorkton 306.783.4100

Swift Current 306.773.7733

Edmonton 800.465.6233

Weyburn 306.842.6060

Lloydminster 780.875.6130

Calgary 866.234.7599

Regina 800.667.3546

Medicine Hat 403.528.4215

Grande Prairie 780.532.6793

COIL COIL TUBING TUBING SERVICES SERVICES FLUSHBY SERVICES FLUSHBY SERVICES

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Serving Alberta, B.C. & Saskatchewan

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www.mss1.ca e-mail: mss@aski.ca

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ALL WORK GUARANTEED AQUAPEL & ARMOUR SHIELD DEALER EDGEGUARD CRACKPROOF WINDSHIELD DEALER

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Phone: (780) 753-6449

Fax: (780) 875-7076

24 Hour Service 1861 - 100th Street North Battleford, SK S9A 0X1 Ph: 306-446-2302 Fax: 306-446-2750

Specializing in Industrial & Oilfield Motors

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Gordon Harty Box 95 Marwayne, AB T0B 2X0

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PIPELINE NEWS September 2008

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Cory Bjorndal District Manager Downhole Tools

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