Pipeline News May 2010

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PIPELINE NEWS Saskatchewan’s Petroleum Monthly

May 2010

FREE

Volume 2 Issue 12

Focus Edition:

Heavy Equipment

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N`c[ZXkk\i CXleZ_\j GX^\ 9(+ Mid-sized dozers are commonly in demand by Saskatchewan’s oilpatch, according to SMS Equipment, Saskatchewan’s Komatsu dealer. See story on Page C14. Photo by Brian Zinchuk

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PIPELINE NEWS May 2010

Land sale not sustainable News

Notes

NuLoch Sanish Well averaged 205 bpd NuLoch Resources Inc. announced on Mar. 29 that one of its horizontal Sanish oilwells (one net) in Tableland, Sask., averaged 205 bbls of oil per day over 30 days (including 19 continuous days) since commencement on Feb. 2. Water cuts are averaging 48 per cent. This well has been followed up with four additional Sanish locations (2.8 net at 70 per cent working interest), the first of which has recently been fracture stimulated and was in the early stage of flow-back. The second well was scheduled for a frac in early April week. The third and fourth wells were drilled. NuLoch has licensed, with plans to drill, an additional three (2.1 net) Sanish wells in Saskatchewan during the second quarter of 2010. The company also has a well (0.7 net) cased and awaiting completion in the Middle Bakken at Taylorton, six miles east of the Sanish Tableland well.

Painted Pony plans another 20 net wells Painted Pony Petroleum Ltd. plans to conduct an active drilling program in 2010, with about 20 net wells planned for the rest of the year in Saskatchewan, primarily targeting oil in the Bakken formation. Painted Pony Petroleum Ltd. earned a $1.95 million profit in the fourth quarter and increased production through drilling and third quarter acquisitions. All of Painted Pony's light oil sales come from Saskatchewan while sales of gas, condensate and natural gas liquids are primarily from northeast B.C. Sales volumes in 2009 were weighted 58 per cent towards oil, reflecting the focus of the year's capital program towards oil, as opposed to the 51 per cent oil weighting in 2008. Briefs courtesy Nickle’s Daily Oil Bulletin

By Geoff Lee Pipeline News Regina – Cha-Ching! The April sale of Crown petroleum and natural gas rights registered a whopping $190.1 million in revenue for Saskatchewan, the second highest total for an April land sales – but don’t expect this to become a trend. “We don't expect the interest to be as high as this in upcoming land sales, but with a rebounding industry and the other spin-offs from its exploration work, we are looking at a very exciting year ahead for our oilpatch,” Energy and Resources Minister Bill Boyd said. The April sale blew away the total for the whole year of 2009, which came in at $118.2 million. Of the $190 million total for April, $139 million was generated from sales in the red hot WeyburnEstevan area. The Kindersley-Kerrobert area was next at $25 million, followed by the Swift Current area at $23.2 million and the Lloydminster area at $2.9 million. “We’re very encouraged by these results,” said Boyd. “It demonstrates increased interest and activity in our oil patch in 2010, after a somewhat slower year in 2009.” April’s sale included 26 petroleum and natural gas exploration licences that sold for $142.4 million and 286 lease parcels that attracted $47.7 million in bonus bids. The highest price for a single parcel was $23.5 million, paid by Scott Land and Lease Ltd. for a 4,210-hectare exploration licence near Oungre in southeast Saskatchewan. The highest price on a per-hectare basis was $15,600. Canadian Coastal Resources Ltd. bid approximately $1 million for a 65-hectare lease parcel near Redvers. Boyd noted the average price of $1,629 per hectare for the entire sale is considerably more than the average per hectare prices recorded in the most recent land sales in Alberta ($974) and British Columbia ($716). The next sale of Crown petroleum and natural gas dispositions will be held on June 7. The following is an area summary with all numbers rounded up. Weyburn-Estevan sale ($139 million) The total bonus received in the area was $139 million at an average price of $2,042 per hectare. This compares to $26 million at an average of $618.45 per hectare at the last sale. The top purchaser of acreage in this area was Scott Land and Lease Ltd., who spent $62 million to acquire 10 lease parcels and four licences. The top price paid for a single lease in this area was $1 million paid by Canadian Coastal Resources Ltd. for a 259 hectare parcel situated 1-km east of the Redvers Tilston Beds Pool, 2-km northeast of the town of Redvers. The highest price paid for a single licence in this area was $24 million paid by Scott Land and Lease

Ltd. for a 4,210 hectare block offering predominantly deeper rights and located partially within the Oungre Ratcliffe Beds Pool, 53-km west of Estevan. The highest dollar per hectare in this area was received from Canadian Coastal Resources Ltd, who paid $15,600 per hectare for a 64.75 hectare parcel located 2-km west of the Bellegarde Tilston Beds Pool, 5 km southeast of Redvers. Kindersley-Kerrobert sale ($25 million) The total revenue received in the area was $25 million at an average price of $1,945 per hectare. This compares to $4 million, at an average of $207 per hectare at the last sale. The top purchaser of acreage in this area was Scott Land and Lease Ltd. who spent $7 million to acquire nine lease parcels. The highest price paid for a single lease in this area was $4 million paid by Windfall Resources Ltd. for a 649 hectare parcel situated partially within the Avon Hill Viking Sand (Oil) Pool, 6-km northeast of Kindersley. This is the highest dollar per hectare in this area at $6,104 per hectare. Swift Current sale ($23 million) The total revenue received in the area was $23 million at an average of $719.42 per hectare This compares to $4 million at an average of $275 per hectare at the last sale. The top purchaser of acreage in this area was Scott Land and Lease Ltd., who dished out $13 million to acquire one lease parcel and three licences. The highest price paid for a single lease in this area was $558,862 paid by Canadian Coastal Resources Ltd. for a 259 hectare parcel situated 50-km southeast of the Lacadena Milk River Gas Pool, 24km northwest of Herbert. The top price paid for a single licence in this area was $12 million paid by Scott Land and Lease Ltd. for a 2,851 hectare block situated 2-km south of the Rapdan South Upper Shaunavon (Oil) Pool, 2-km southwest of Frontier. This is the highest dollar per hectare in this area at $4,321 per hectare. Lloydminster sale ($2.9 million) The total revenue received in the area was $2.9 million, at an average price of $834 per hectare. This compares to $5.6 million at $272 per hectare at the previous sale. The top purchaser of acreage in this area was Prairie Land and Investment Services Ltd., who spent $1.1 million, to acquire four lease parcels. The highest price paid for a single lease in this area was $402,928 by Prairie Land and Investment Services Ltd. for a 259 per hectare parcel situated 9-km northeast of the Carruthers Cummings Sand (Oil) Pool, 19-km southeast of Maidstone. The highest dollar per hectare in this area was received from Mineral Consulting Services Ltd., who paid $6,523 per hectare for a 16 hectare parcel located within the Edam West Mannville Sands (Oil) Pools, 27-km northeast of Maidstone.


PIPELINE NEWS May 2010

News

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Notes

Stealth signs joint venture deal

Lionel Kambeitz grew up in Sedley, not terribly far from the Weyburn oilÀelds that are now leading the world in carbon dioxide storage. Now his Regina-based company is poised to commercialize the carbon capture technology developed at the University of Regina and sell it around the world.

Years of CCS research ready to be implemented By Brian Zinchuk Pipeline News Regina –The conventional thinking behind carbon capture and storage is to put a great big plant on the tail end of a large coal-fired power plant, then build a large pipeline to some distant oilfield in order to pump the highly pressurized greenhouse gas underground. While that is still the big prize of carbon capture, what if you could do it on a small scale, right at the wellhead? HTC Purenergy of Regina says it’s ready to do just that, with a modular carbon capture system meant for steam-assisted gravity drainage (SAGD) operations. But they are also doing it in the large scale, too. HTC Purenergy (not to be confused with Korean smartphone maker HTC) is the sole licensee of the carbon capture technologies developed over the past 20 years at the University of Regina’s International Test Centre for CO2 Capture (ITC). Malcolm Wilson, PhD, and director of the U of R Office of Energy and Environment, which includes the ITC, has said over the past year that the technology was ready to take the big leap into commercialization. HTC Purenergy is ready to do just that. The company has two major thrusts – the large scale carbon dioxide capture associated with power plants, and a smaller, modular system, that can handle

up to 1,000 tonnes of CO2 per day (tpd). “At 1000 tpd, or larger it’s difficult for it to be modular,” explained Lionel Kambeitz, CEO of HTC Purenergy. Kambeitz is the founder of the publicly-traded company. The university owns some shares, and Doosan Power Systems has about 15 percent. Kambeitz, the founders and managers own about a third. “About 30 of our founding shareholders are from the Weyburn area,” he said. Their offices are within a stone’s throw of the International Test Centre for CO2 Capture, within the Innovation Place research park. Major ND project In December, 2009, it was announced that HTC Purenergy would be providing the technology for the sister plant to the coal gasification plant that already provides CO2 to the premier carbon capture and storage projects at Weyburn and Midale. Bismarck, North Dakota-based Basin Electric Power Cooperative owns the Dakota Gasification Company (Dakota Gas), which is at the other end of the pipeline from the Weyburn-Midale Project. The new project will be at the nearby Antelope Valley plant, and will capture 3,000 tonnes of CO2 per day. Put in perspective, that’s roughly the size of the SaskPower Boundary Dam 3 project. ɸ Page A6

Stealth Ventures Ltd. says it has signed a joint venture with MOI Resources Ltd., a Saskatchewan based, private oil and gas company looking to expand into the Colorado group of shales resource play. "We're excited to be entering into a partnership with Stealth and see a lot of potential in the Colorado. It's a good time to be entering into the gas markets as we probably wouldn't have had this chance if gas was $10 per mcf," said MOI Resources chief executive officer Kerwin Mondor in a news release. The Cretaceous Colorado group in the Western Canadian Sedimentary Basin is represented almost continuously in a 1,000 kilometres eastwest profile. Of the over 250,000 well bores that penetrate the Colorado, most have been drilled to target deeper horizons. Derek Krivak, president and CEO of Stealth, said there is more potential than his company would ever be able to manage on its own and "so we're excited to be expanding our efforts with MOI."

Sask. Geological Survey Open House The 41st annual Saskatchewan Geological Survey Open House will be held at the Delta Bessborough Hotel in Saskatoon, Nov. 29 to Dec. 1, 2010. Last year, over 700 delegates, including those from Brazil, China, Korea, Japan and United States registered for the conference. This is the premiere event to learn about recent developments in geology and mineral exploration in Saskatchewan. Current mineral exploration activity will also be profiled. Registration is free, and will commence in September, 2010. More information can be found at www.er.gov.sk.ca Briefs courtesy Nickle’s Daily Oil Bulletin

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EDITORIAL

PIPELINE NEWS May 2010

Pipeline News Publisher: Brant Kersey - Estevan Ph: 1.306.634.2654 Fax: 1.306.634.3934

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

Editorial Contributions: SOUTHEAST Brian Zinchuk - Estevan 1.306.461.5599 SOUTHWEST Swift Current 1.306.461.5599 NORTHWEST Geoff Lee - Lloydminster 1.780.875.6685

Associate Advertising Consultants: SOUTHEAST • Estevan 1.306.634.2654 Jan Boyle - Sales Manager Cindy Beaulieu Glenys Dorwart Kristen O’Handley Deanna Tarnes SOUTHWEST • Swift Current 1.306.773.8260 Doug Evjen Stacey Powell NORTHWEST • Lloydminster Daniela Tobler 1.780.875.6685 MANITOBA • Virden - Gail Longmuir 1.204.748.3931 • Estevan - Jan Boyle 1.306.634.2654

To submit a stories or ideas: Pipelines News is always looking for stories or ideas for stories from our readers. To contribute please contact your local contributing reporter. Subscribing to Pipeline News: Pipeline News is a free distribution newspaper, but is now available online at www.pipelinenews.ca Advertising in Pipeline News: Advertising in Pipeline News is a newer model created to make it as easy as possible for any business or individual. Pipeline News has a group of experienced staff working throughout Saskatchewan and parts of Manitoba, so please contact the sales representative for your area to assist you with your advertising needs. Special thanks to JuneWarren-Nickle’s Energy Group for their contributions and assistance with Pipeline News.

Pipeline News Estevan, SK Ph: 306.634.1015 Fax: 306.634.1041 Published monthly by Glacier Ventures International Corporation, Central Office, Estevan, Saskatchewan. Advertising rates are available upon request and are subject to change without notice. Conditions of editorial and advertising content: Pipeline News attempts to be accurate, however, no guarantee is given or implied. Pipeline News reserves the right to revise or reject any or all editorial and advertising content as the newspapers’ principles see fit. Pipeline News will not be responsible for more than one incorrect insertion of an advertisement, and is not responsible for errors in advertisements except for the space occupied by such errors. Pipeline News will not be responsible for manuscripts, photographs, negatives and other material that may be submitted for possible publication. All of Pipeline News content is protected by Canadian Copyright laws. Reviews and similar mention of material in this newspaper is granted on the provision that Pipeline News receives credit. Otherwise, any reproduction without permission of the publisher is prohibited. Advertisers purchase space and circulation only. Rights to the advertisement produced by Pipeline News, including artwork, typography, and photos, etc., remain property of this newspaper. Advertisements or parts thereof may be not reproduced or assigned without the consent of the publisher. The Glacier group of companies collects personal information from our customers in the normal course of business transactions. We use that information to provide you with our products and services you request. On occasion we may contact you for purposes of research, surveys and other such matters. To provide you with better service we may share your information with our sister companies and also outside, selected third parties who perform work for us as suppliers, agents, service providers and information gatherers.

Editorial Optimism in the wind There’s a spirit of optimism in the oilpatch that’s in the air this spring. It was noticeable at the Estevan OTS Bonspiel at the end of March, the big southeast Saskatchewan social event that draws winter season to a close. Moods were much more upbeat than they were at the last Estevan OTS bonspiel, right around the time oil was bottoming out and oilmen were looking at a gloomy summer. The optimism has become more noticeable as the weeks go on. As soon as the road bans come off, watch out! Saskatchewan’s going to be going great guns. It probably has a lot to do with the whiff of oil priced over $80, as it has been for several weeks this spring. There’s nothing like a strong Crown land sale to get people in the mood. The April 12 sale was a doozy. At $190.1 million, it brought in substantially more than the entire calendar year of 2009, which totalled $118.2 million. It’s the second largest April land sale to date. The bonus from that sale alone will go a long way towards covering off the recent budget’s rainy-day fund withdrawal. It also looks like the increased seismic activity this past winter we reported on has borne fruit. The government isn’t expecting such strong sales later in the year. They might be in for a surprise. Then again, maybe they’re just being cautious, after the potash windfall or lack-thereof fiasco. Early in 2010, one business told Pipeline News that they expected 2010 to be bigger for them than 2008.

Since then, we’ve thrown that out as a challenge, asking a number of businesses in the southeast in particular if they felt that would be the case for their operations. Most of the responses have been yes, they expect it will be. Very few have responded that they weren’t expecting a strong year. Since 2008 was the banner year for most of these businesses, spread across several sectors of the oilpatch, that’s the type of optimism economists swoon over. Many of these companies have mentioned they will likely be looking for additional staff in the coming months, if they can find them. That could be a challenge. Saskatchewan’s drilling rig count kept climbing from the beginning of the year, reaching into the low 90s before road bans came into effect. If drilling continues on that path, it will outstrip the 2008 pace, and blow away 2009. We’ve heard of idled rigs being reactivated this season. The Williston Basin Conference, which alternates between Saskatchewan and North Dakota each year, is expected to be a big one this year, when it is held in Bismarck, ND, in early May. By April 20, the registration was already in excess of 1,900, far outstripping previous records. While a large part of that will be the tremendous growth in the North Dakota oilpatch, some of it will also be a reflection of what’s going on here. Saskatchewan’s oilpatch has two rounds each year. The first round is winter work, followed by a respite in the corner known as spring breakup. When the bell rings for round two, summer drilling, it’s going to ring loudly. Fighters get ready, and come out swinging.


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Opinion More power days are numbered, at least for now From the top of the pile Brian Zinchuk

It didn’t get a lot of fanfare, but Canada and the United States signed onto a fuel efficiency agreement this spring that will have a profound effect on our lives, as well as the oilpatch. By 2016, new cars and trucks will be required to get 35.5 miles per gallon (15 km/L), up from current rules mandating 25 mpg, a 42 per cent increase. At the same time, carbon dioxide emissions per mile must fall to 250 grams per mile, down from the 2012 regulation of 295 grams per mile. Since Canada and the U.S. share an integrated auto industry, the standards will be the same on both sides of the border. If indeed these rules do hold and aren’t whittled away by Congress, the vehicles we are going to be looking at on the lots are going to be a lot different than the ones in our driveways. Think more Geo Metro-types and fewer Ford Expeditions. They’re going to be smaller, lighter, likely with less horsepower than what we’re used to.

Ah, yes, horsepower. We all want more. It’s a testosterone thing. “More power!” as Tim Allen would say. There’s been a continual rise in horsepower for decades, with each new model of vehicle typically beefier than the one before. My 2004 Buick Rainier SUV has 265 horses under its hood, derived from an inline-six. Two decades ago, that might have been a decent rating for a one-tonne, and unheard of in an SUV. The Rainier also sucks gas like a pickup, if not a one-tonne. While I’ve got plenty of power to pass, I can’t pass the gas station after 400-km, or I’ll be walking. I usually get around 20 mpg, or 7.1 km/L on the highway. I personally wouldn’t mind a more efficient vehicle, but one with the same capabilities. Engineering-wise, improvement in performance generally give you one of two things, more power, or better efficiency, rarely both. The market has almost always trended more to the power side of the equation. That’s going to change. While fuel efficiency ratings have climbed, to see such a dramatic change in such a short time is going to mean compromises. Yes, engines are much more efficient today than yesteryear, but to make those mileage gains, horsepower is going have to give way. If, 10 years down the road, the bulk of the North American fleet is indeed 42 per cent more efficient, it means a drop in demand for oil, so much so that the American refiners are already squawking. That might not be so bad in the long run, because peak oil theorists might not be too far off the mark when it comes to maximizing production in the near future. We

might just need those fuel efficiencies to compensate for the lack of ability to ever-increase oil production. We will literally have to do more with less, driving more efficient vehicles because we won’t be able to get as much oil as we used to. It also has the effect of reducing emissions, not just of greenhouse gases, but of all other air pollutants. Higher efficiency, as a general principle, is a common good. The question is, why has it taken so long to get to this place? Why didn’t fuel economy standards rise gradually over the years, instead of the big shock to the system now? The answer lies in an ineffective Congress, too hamstrung to actually do anything for decades. Now, everyone has to play catch-up. For the next several years, expect to see fleet purchases of pickup trucks follow the pattern of big rigs. Each time the emissions requirements move up a notch, there will be high demand for the previous year’s model. No one wants to buy a more anaemic truck if they can help it. A decade down the road, we may see the power levels return to their current heights, but with the improved fuel efficiency. Until then, expect the power of engines to plateau or even drop over the next six years. So if you are a Tim Allen-type of truck buyer, go shopping now, because your “Arr arr arrr” choices are going to be limited. Brian Zinchuk is editor of Pipeline News. He can be reached at brian.zinchuk@sasktel.net.

Budget no cause for worries or parties Those who smoke or drink alcohol were probably not in the mood to celebrate Saskatchewan’s balanced spring budget that contained some good news for the oilpatch. While the budget hiked so-called sin taxes on smoking and drinking, a strong measure of the $9.95 billion in the budget forecast is based on a WTI (West Texas Intermediate) US$77.50 per barrel that will help generate $1.1 billion in oil royalties. Only $35.1 million will enter the coffers from increase taxes on smokes and booze, but those affected in the oilpatch will presumably be healthier and able to produce more oil – so it’s all good news! The extra tax revenues also allow the government to declare a tiny surplus of $20 million in the General Revenue Fund. On the cost reduction side of the equation, government expense levels are reduced by 1.2 per cent, while protecting important programs and services in health, social services and education. The budget is expected to generate 4,100 new jobs in the budget year in a province that grew by 15,760 from Jan. 1 2009 to Jan. 1 2010. The provincial population is now 1,038,018 and counting according to the latest figures from Statistics Canada on Mar. 25. The population gain and the balanced budget

Lee Side of Lloyd Geoff Lee

prompted Finance Minister Rod Gantefoer to wax poetic on budget day about Saskatchewan’s positive economy. “The Saskatchewan economy remained strong through the worst of the global recession," Gantefoer said. “And with the recovery now well underway, there is plenty of reason for optimism. “All the independent forecasters say Saskatchewan will be one of the economic leaders in Canada in 2010 and 2011. Saskatchewan’s economy is strong, and this budget will give our province the solid fiscal foundation it needs to stay strong.” Another good sign for the energy sector is an investment commitment of $16.6 million for the Saskatchewan Research Council to continue its cur-

rent research and development projects. These projects include everything from enhanced oil recovery and carbon sequestration to biofuels and oilsands science and technology. The budget has also earmarked $3 million from by Crown Investment Corporation for First Nations’ economic development initiatives. No doubt that’s in recognition that more oil and gas exploration development is taking place on First Nation’s territory creating new investment and training needs. With road bans still fresh in our minds, the government will make the hauling of oil goods more efficient and safer with $250 million in new highway construction and repaving this year. The budget includes $86 million to commence or complete 470-km of work under the rural highway strategy. Another $76 million will be spent to commence or complete 600-km of resurfacing across the provincial highway system as well and $36 million to repair or replace bridges and culverts. The budget news however comes with this caveat: If you choose to celebrate with a smoke and drink, it will cost you – in more ways than one. Somebody has to pay for the $126.9 million funding increases to improve delivery of health care services to Saskatchewan people.

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


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PIPELINE NEWS May 2010

Modular CCS system to improve SAGD ɺ Page A3 biggest costs of large scale carbon dioxide capture projects. Compression can add The eventual aim of the project is to use the captured CO2 for enhanced oil $5 to $6 a tonne to the cost, according to Kambeitz. recovery close to the power plant with the CO2 subsequently stored underground, “It’s an amine scrubbing system done at atmospheric pressure.” according to Basin Electric. The CO2 will be used in the Dakotas, and possibly You also don’t need to pipeline it great distances, saving an additional $2-$4 per tonne. Canada as well, Kambeitz said. A SAGD boiler system can produce 250 to 500 tonnes of CO2 per day, he Using U of R research, HTC Purenergy may be providing the brains for the project, but the brawn comes from power plant heavyweight Doosan Power Sys- said. The systems are often incrementally increased in size. HTC Purenergy’s tems, HTC’s partner, one of the biggest power plant builders in the world. HTC CCS Capture System is designed to be modular as well, so that it can grow with might be small so far, but they rated high enough to be mentioned in the fourth the SAGD plant, capturing CO2 from two or three boilers. That allows the CO2 paragraph of a Doosan corporate booklet talking about multi-billion dollar coal, capture to be brought into the field incrementally. This can have a strong impact on oilsands development, including Saskatchwind, combined cycle, nuclear and water plant projects worldwide. The booklet ewan’s own future oilsands, states, “By making strategic according to Kambeitz. The investments in and licensing federal government has agreement with HTC Purenpointed out it wants carbon ergy, a leading Canadian CO2 capture and storage to be part management company, we are now at the forefront of and parcel with new oilsands development. The vast majorcarbon capture and storage (CCS) technologies, which ity, 80 per cent, of the Alberta and Saskatchewan oilsands will enable the significant are not mineable, Kambeitz reduction of the CO2 emissions from existing and newly noted. In situ techniques like built power plants.” SAGD are needed to develop “Our business model for them. projects over 3000 tpd is to It was one of the reasons go in with a big company like HTC Purenergy brought in Jim Carter, PhD, former Doosan,” Kambeitz said. “We say here’s the technology, and CEO of Syncrude, and chairman of the Alberta Carbon here’s our partner who will construct it and integrate it. Capture and Storage Devel“When it comes to big opment Council, to speak at projects, you need companies the University of Regina on Mar. 31. with billion dollar balance sheets.” “We have an opportuDoosan has a strong presnity in Saskatchewan to reence in the UK, and last year The International Test Centre for CO2 Capture’s research is now ready to by commercialized. ally learn all about the in situ The ITC, seen here, is on the University of Regina campus. HTC Purenergy and the U development in Alberta,” said of R’s ITC spent six months Kambeitz. “We think that training Doosan representatives on the technology, up to 18 at a time, so that steam and CO2, in various application protocols, are going to be a formidable they can now promote it the world over. HTC and Doosan joined CO2 forces in combination. “I’m going to call that early in situ technology. I think the THAIs, Toe-Heel late 2008. Modular CO2 capture Air Injection, and other technologies, are the very promising next generation However, you don’t need to be the size of a multi-billion dollar power plant to technologies. But steam and CO2 for light bitumen and heavy oil is going to be capture CO2. HTC Purenergy is in the process of rolling out its modular design, the initial core technology.” Ready for sale which can vary from 30 to 1,000 tonnes per day in capacity. “We announced our commercial initiatives for Alberta, in Calgary 30 days “Heavy oil plays a very important role in Saskatchewan’s oilpatch,” Kambeitz said. “The experience in heavy oil and CO2 isn’t substantial,” he added, unlike ago,” he said on April 6. “I think we’re going to tackle all of the opportunities with Cenovus’ and Apache’s experience with CO2 in light oil. this modular system. The concept is modularize, whether its 1,000 tonnes a day, “Everybody thinks it’s a pressurization technique,” he said. The big factor or 200 tonnes a day – to create enough of these modular systems and use CO2 as of CO2 in enhanced oil recovery is not so much pressurization, pushing the oil a feedstock. “If you wanted to buy one of these, we can have it supplied for you by the end out, but rather miscibility. The carbon dioxide acts like a solvent, allowing for of this year,” he said. Manufacturing would be done right in Regina, by a company increased recovery factors in the reservoir. He can’t say who, but the company is working with heavy oil producers in that HTC has a financial interest in, Pinnacle Industrial Services. “A traditional Alberta and Saskatchewan to field the technology. The idea is a huff-and-puff system, we can have up and running in six to nine months. We’ve literally just offered it to the SAGD industry.” cyclic injection, injecting carbon dioxide with steam. On the web: These small scale projects differ greatly from the large ones, in that there is no www.htcenergy.com major pipeline involved. The carbon dioxide is captured from the exhaust of the www.doosanbabcock.com SAGD boilers, and then re-injected, at low pressure, along with the steam, into www.basinelectric.com the well right there on site “exactly where you need the CO2,” Kambeitz said. www.uregina.ca/oee/ By getting rid of the high pressure compression, you also eliminate one of the


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Carbon storage could boost reserves By Brian Zinchuk Regina – Capturing carbon dioxide and using it for enhanced oil recovery isn’t just smart for the environment, it also has the potential of substantially increasing recoverable oil reserves. That’s according to former Syncrude Canada CEO Jim Carter, PhD, who is heading up Alberta’s efforts on carbon dioxide capture and storage. Carter is chairman of the Alberta Carbon Capture and Storage Development Council. The Alberta Carbon Capture and Storage Development Council is a partnership between governments, industry and scientific researchers. Established by the government of Alberta, the council will work towards the implementation of CCS to ensure that Alberta’s energy resources are developed in an environmentally sustainable way. Carter was at the University of Regina on Mar. 31 presenting two lectures on carbon dioxide capture and storage. He was invited by Regina-based HTC Purenergy, the sole licensee of the University of Regina’s carbon capture technologies. He spoke to about 100 graduate and undergraduate students in his first lecture and over 125 business stakeholders in his second. Between lectures, Carter spoke with Pipeline News about carbon dioxide sequestration, and its relevance to

enhanced oil recovery. Pipeline News asked where Carter sees Saskatchewan when it comes to carbon capture, where does it need to be, and what does it need to do? “I think Saskatchewan’s already got a really good head start on this in terms of building a body of knowledge,” he said, pointing out the experience in the Weyburn field, with about 14 million tonnes of CO2 already safely underground. Carter also referenced Reginabased HTC Purenergy’s efforts to develop modular carbon capture technology. “Saskatchewan has certainly been putting effort into this, as has Alberta, over the last few years. It behoves us to do that, as two provinces that produce a lot of Canada’s energy.” He added Alberta and Saskatchewan have huge coal reserves, and want to continue developing that resource as a sustaining part of our economy. Coal is the key Where do we need to go next? “It’s a matter of continuing to focus on the research and development, and to be involved in the large scale pilots that are being pursued around the world, really, to further enhance carbon capture and storage,” says Carter. “Staying on the leading edge of emerging trends and being part of driving that is I think is very important.” “I see that happening, in my visit here today, to the University of Regina. With Saskatchewan’s heavy oil

reserves, and with its opportunity in the oilsands, it just makes sense. Provincial boundaries don’t recognize 100 million years of geology. The oilsands do in fact flow into Saskatchewan and there’s opportunity here to utilize that technology. “On a global scale, it’s all about coal. How do we continue to use coal to generate electricity, and do it in a way that reduces the carbon footprint? One of the obvious ways there is to utilize carbon capture and storage with coal-fired power plants. It just makes sense for Alberta and Saskatchewan to do that, because we rely heavily on coal-fired power. “The United States, for example, produces 50 per cent of its power today from coal-fired electricity. That probably will not shrink, if you look at demand going forward, and could perhaps even increase. Developing this technology and making it so it can be used around the world I think is an opportunity.” Retrofits On the Boundary Dam 3 and

Sask-Montana carbon capture projects, Carter said they are the kind of things the industry in a broader sense will be interested in. “An awful lot of what we’re going to be able to do in the next few years, at least in North America, is retrofit technology on existing coal fire power plants. Making sure that we’ve got the right processes that utilizes the least amount of energy to capture the carbon and store it, are going to be very important.” Processes that can be added to the back end of existing plants will be very important to the developed world, he said, where power plants are quite old but still have useful life. “These retrofit technologies have a lot of value in those circumstances,” Carter said. Dirty oil? Carter took issue with the idea of ‘dirty oil’ from the oilsands. “The carbon footprint of a barrel of oil from the oilsands is about 10 per cent higher than the footprint of a barrel from the average crude oil available around the world,” he said. ɸ Page A8

*** Correction ***

Chicken scratch in note taking resulted in a misspelled name in the April edition of Pipeline News. In the story entitled “A little something for every season,” profiling Phil’s Oilfield Contracting of Radville on page A24, Cara Thompson was mistakenly identified as Lara Thompson. Pipeline News regrets the error and any confusion it may have caused.


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PIPELINE NEWS May 2010

Former Syncrude CEO now touts carbon capture and storage ɺ Page A7 “That’s down from about 15 per cent a few years ago for a couple of reasons. One, the oilsands have become more efficient, in terms of energy use, and reduced the energy per barrel by about 38 per cent since 1990. The other factor is the oil available around the world is getting heavier. A lot of people call that ‘dirty oil,’ and when they do, they are referring to the carbon footprint. The carbon footprint is really not as high as the moniker ‘dirty oil’ suggests.” Asked about federal guidelines for carbon capture in future oilsands development and how that will affect Saskatchewan, Carter pointed to the effort to update the Fort Saskatchewan Scotford Upgrader to capture carbon dioxide. Once that is done successfully, of which he has no doubt will occur, it will reduce the carbon footprint of oilsands oil to below the average slate of crude oil available around the world. It would drop from ten per cent higher to 10 per cent below the average carbon footprint, he said. The “Quest Project,” as the Scotford initiative is known, was one of the projects successful in getting money from the Alberta government’s $2 billion CO2 capture funding, according to Carter. “That sort of resolves the argument about it being ‘dirty oil.’ How much for CO2? When questioned on what the price of carbon has to be per tonne for carbon capture to make sense, Carter said, “It’s more in the $60 to $70 a tonne range. What’s going to happen here as we develop these commercial scale pilots? We’re going to bring down the cost of the carbon capture and storage itself. The cost is really in the capture and compression. “

We have an opportunity for Saskatchewan and Alberta to make a difference on a global issue.

- Former Syncrude Canada CEO Jim Carter, PhD He made a comparison to flue-gas desulfurization, pointing out its cost has dropped by about half since the initial work was done. “You’re going to see a similar pattern in carbon capture. That will help bring the cost down.” “You’re going to see the value of carbon go up over time,” he said, noting it would likely be in the $60-$70 per tonne range in six-12 years. “The impact of carbon capture on the oilsands production could be about $8 or $9 a barrel, if the cost of capturing it did not drop,” he explained. “It only gets passed on [to the consumer] if the whole world decides to do this. Otherwise, it’s a penalty that hits our industry in Canada, and doesn’t hit the oil producing nations elsewhere in the world. We have to be really careful how we do this, so we don’t penalize our industry to the point where we make it uncompetitive.” Potential doubling of reserves Justifying the government of Alberta’s $2 billion

investment into CO2, Carter said, “There are studies that indicate, if we can get CO2 available at the wellhead, for all the enhanced oil recovery opportunities we have in Alberta ...If you look at light oil, it essentially would double the reserves of light oil we could actually extract. It would add another 1.4 billion barrels of light oil to the reserves in Alberta. Can you imagine, at $75 a barrel, you’re talking something in excess of $100 billion in revenue, and $25 billion in royalties to the government of Alberta. “It certainly makes sense.” He added there were issues around miscibility, CO2 and heavy oil, and that research was needed. In regards to how much oil companies might be willing to pay for CO2 to be used in enhanced oil recovery in southeast Saskatchewan, Carter said if CO2 were available by pipeline at the wellhead, he said the price of CO2 would come down, compared to the over $100 a tonne it costs to truck it in. “We used something in $35 to $40 per tonne,” he said in their calculations. “I would suspect we’ll end up with a price in that range.” Concluding, Carter said, “Every challenge has an opportunity attached to it. We have an opportunity for Saskatchewan and Alberta to make a difference on a global issue. We have the educated folks at the University of Alberta, University of Calgary, University of Saskatchewan, University of Regina – the research institutes to enable that to happen. The companies that are forward thinking, like HTC Purenergy, have the opportunity to demonstrate to the world we’re not only good at developing resources, but we’re good at solving technology problems. “


PIPELINE NEWS May 2010

Safety week to focus on injury prevention Work place safety is the focus of North America Occupational Safety and Health Week May 2-8. Safety is paramount at the construction site of the new Thorpe Recovery Centre in Lloydminster that is supported by donations from the oilpatch. The Centre also received $150,000 donation from an anonymous company in April. Photo by Geoff Lee

Lloydminster – How safe is your work place and community? That’s a question worth posing during this year’s North America Occupational Safety and Health or NAOSH week May 2-8. NAOSH week is a joint occupational health and safety venture intended to raise awareness of health and safety issues and importance of preventing injury and illness in the workplace. The annual NAOSH event is led in most Canadian communities by the Canadian Society of Safety Engineering (CSSE) in partnership with the Canadian Centre for Occupational Health and Safety and Human Resources and Skills Development Canada. National events are held in conjunction with the North American Society of Safety Engineers. This year’s theme is “Safety and Health: A Commitment for Life! How Safe Are You?” and will be celebrate by various community events in Saskatchewan and Alberta. In Lloydminster, the week will be marked by a barbecue and safety tradeshow May 4 at the Communiplex and fire extinguisher training May 3-4. Cam Peneff chair of the Lakeland Regional Safety Committee, a subcommittee of the Lloydminster Construction Association that organizes the Lloydminster events in the absence of strong CSSE membership, hopes more companies from the oilpatch get involved this year. “We don’t get as many as we’d like to see” said Peneff who runs his own safety consultant business. “We’d like to see more participation from the patch.

“The oilpatch and construction is pretty damn close – certain parts of it anyway. We face a lot of the same hazards and the same issues. We would love to see a lot more oilpatch participation.” There will also be a presentation about safety awareness by a young area farm worker who was electrocuted when his equipment contacted an overhead wire. That personal presentation goes ahead May 5 at the West Harvest Inn. The Lloydminster Construction Association along with affiliated industry trade associations is coincidentally holding at “Try A Trade” construction career expo to be held at the Lloydminster Exhibition Grounds on May 5. The Try A Trade event to be held from 9 a.m. to 6 p.m. will attract students from all high schools in Lloydminster and surrounding area to experience firsthand the various construction career opportunities that are available. In Regina, NAOSH week kicks off May 4 with an 11 a.m. luncheon at the Queensbury Convention Centre in Regina. The guest speaker will be safety advocate Rob Ellis whose 18 yearold son David died in a workplace accident in 1999. Ellis’s safety presentation and story with be broadcast to a similar NAOSH luncheon to be held at the same time at TCU Place in Saskatoon. NAOSH week wraps up May 5 in Regina with a construction safety trade show and barbecue at the Tartan Curling Club in Regina starting at 11 a.m.

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The Enbridge Kerrobert Station is a major oil and gas storage and pumping station just east of Kerrobert.

Kerrobert energized by word Story and photos by Geoff Lee Kerrobert – The population of the Town of Kerrobert is more than 1,100 today, not including a ghost or two said to dwell in the historic court house building that now serves as the town office and museum. While news of apparitions might scare off some visitors, what rattles Deputy Mayor Myrna Kissick

• • • • • •

and administrator Michele Schmidt is the specter of not having enough housing to accommodate new oilfield workers and families. “It’s a huge need with the influx of people coming in and looking for new homes,” said Schmidt. “Presently, we have three or four homes in town that are listed for sale – some of them fairly new homes. They are priced up to that $200,000 to $250,000 range.

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“If a young couple is moving to town, we don’t have anything in a nice midsize. We don’t have a lot of nice three bedroom homes – that average home – [for] $150,000 to $160,000.” The town continues to advertise for a developer to build 30 new lots in two subdivisions. With no takers in line, the town is resigned to service nine lots itself, starting this spring near the landmark water tower. Other lots within the popular nine-hole golf course subdivision will follow in the coming years. “It will be done in stages,” said Schmidt. “Unfortunately, with the town being the developer, it’s pretty tough to be able to develop those lots and hold that financial debt. We will service those lots in town this spring. “Right now, we have two lots in the older part town that are presently for sale.” Kerrobert is awash in rental properties that came on the market during the construction of the Alberta Clipper pipeline built in 2008-09 by Enbridge Pipelines Inc., one of the major employers and influences in the area. “We have heard through the grapevine, there is going to be some growth coming our way this summer,” said Schmidt. “We are hearing about an influx or a reorganization of the oil and gas industry. “We are hoping that will entice people to move to our community because they can get a job with Nexen or Enbridge or one of the other companies. Hopefully, we will see the spinoff from that aspect.” Alliance Pipeline Ltd., Enbridge Pipelines Inc., Inter Pipeline Fund and Plains Marketing Canada LP, are some of the major oil and gas players in the area, with pipeline links and storage assets at or near the Kerrobert Terminal, east of town. The terminal is the site of a co-generation power plant built SaskPower and NRGreen Power that converts waste heat from Alliance’s gas compressor station and generates it into five megawatts of electricity. ɸ Page A11

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PIPELINE NEWS May 2010

NRGreen Power built this gas powered turbine generator next to the Kerrobert Terminal.

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Deputy Mayor Myrna Kissick and administrator Michele Schmidt are proud supporters of their community and the oil and gas industry.

of pending oil¿eld growth ɺ Page A10 Several oilfield service and supply companies are also located in Kerrobert where Mynra Kissick has lived since 1946 and knows firsthand what the industry means to families likes hers. “I’ve seen a lot of impact. Our son works for Nexen and our grandchildren have worked in the oilpatch as various jobs. It’s provided lots of employment for our family,” she said. “My husband Adgey and I farm south of Kerrobert, and the oil wells that are pumping on our land kept us farming for a lot of years – through a lot of bad years. “My dad had a grocery store in town. At some times during the poor years, he used to take shares from the guys that maybe needed a little bit of help. “Instead of paying for the groceries they would give him some shares from Inter provincial Pipe Line (1949) before it became Enbridge. It’s always been a

part of our lifestyle here.” “We have a good core of service industries in Kerrobert. Our young people can stay in Kerrobert. The town’s average age is around 40.” When Kissick was young herself, Kerrobert had a bigger population than it does today, but a series of fires in the 50s and 60s wiped out core downtown businesses and dealerships that never came back. “I think the population will recover to that level, but I don’t know if the business district will ever recover because the larger companies are centralizing in large communities,” said Kissick. On the bright side, Kerrobert has a small town lifestyle where everybody knows everybody and kids can walk to school or the arena or the outdoor swimming pool. “We have three children and they have all made their homes in Kerrobert,” said Kissick. They all have businesses in Kerrobert or work out of here.

“I have two of 10 grandchildren that live away, and one of them lives in Lloydminster and comes back here to work at the hospital. It’s an excellent place to raise family.” Infrastructure New oil and gas industry workers and businesses are helping to boost the tax base of the town for badly need infrastructure projects including the recent construction start of a new $4.5 million reverse osmosis water treatment system. “The project itself is a requirement of the province to meet new standards for water treatment,” said Schmidt. The cost is partly offset by a $2.1 million grant from Infrastructure Stimulus Fund from the provincial and federal governments, and $500,000 from the Municipal Rural Infrastructure Fund. The town will have to borrow approximately $2.3 million to pay the balance. ɸ Page A12


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PIPELINE NEWS May 2010

New home construction needed

New affordable housing and lots are at a premium but the town will begin to service nine new lots this spring.

ɺ Page A11 “That is a huge debt load for a small community this size, but we are going to forge ahead,” she stressed. “We still have to struggle with cast iron

water mains, and we have been changing about two to three blocks a year. At some point, we will have all of the mains replaced.” Repaving and repairing residential streets

, ASME

and downtown beautification are on the town’s to-do list. Meanwhile, an elevator is being installed in the court house building with a $50,000 contribution from the federal

government. It won’t go to the basement, where the supposed ghost is thought to have a connection with a skull locked in an evidence room and a 1931 murder trial that took place on the first level. The town has committed $300,0000 to the Kerrobert, Luseland & District or KLD Foundation that is raising funds for the $18 million capital cost of a new hospital and nursing home. “It’s very important to our community that we have a good well handled health care facility,” said Kissick. “If we were to ever have an oilfield accident we need to be set up to handle something like that. We have hired an EMO (emergency measures officer) to set up plans and work with oil companies on plans in case we do have a problem.” Oilfield donations have helped the town with the purchase of a new fire truck, upgrades to the arena and the rebuilding of the golf course that was torn up for a pipeline in 2000 and the list goes on. “I appreciate the oil and gas industry in that it’s allowed me to keep

my family close,” said Kissick. “I love to have my grandchildren grow up right under my nose. “It’s supported a lot of things. I have my grandchildren playing

hockey and half their sweaters have a logo or their programs are printed by a local oil company. It lets us keep a whole lot of our programs running.”

Crews work on a $4.5 million expansion and upgrade of the Kerrobert water treatment plant.

This functioning 1914 standpipe water tower is one of the main attractions in town that will mark its centennial next summer.


PIPELINE NEWS May 2010

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Toys for oilpatch consumers draw a crowd Story and photos by Geoff Lee The Lloydminster Showcase tradeshow held at the Lloydminster Exhibition Grounds in late March featured a variety of home and garden, sport and leisure products and services that are on the wish list of many oilpatch consumers. The three day show was well attended with warm spring weather turning visitors’ thoughts to visions of relaxing around the home and garden and enjoying some of the leisure products on display at the show. Myron Bassett, branch manager of Cummins Western Canada, showcased an RS 12,000 standby generator for the home powered by natural gas.

Ken Deleff, service manager for Rec-Tech Power Products, stands by a Can-Am Renegade quad.

Call goes out for heavy oil symposium

SPE president Behrooz Fattahi, Aera Energy LLC. Photo submitted

Lloydminster – It’s early days, but preparations are underway to draft an agenda for the 17th Annual Heavy Oil Technical Symposium to be held at the Lloydminster Convention Stockade Sept. 15-16. The event is organized by the Lloydminster section of the Society of Petroleum Engineers that has put out a call for presentations. Potential presenters are invited to submit a brief biography and an abstract of their talk for consideration on the agenda. This year’s symposium will be held in conjunction with the Lloyd-

minster Heavy Oil Show under the theme, “Challenges, Opportunity, Change.” Suggested topics for presentations include new innovations for the future, field research and pilot studies, workover techniques, production issues, operating cost reductions and case studies of oil production or treating. Anyone interested in delivering a presentation at the show is asked to contact a SPE executive member noted on the SPE website, at www. specanada.org/Lloydminster/index.html. The deadline for abstracts and biographies is May 31. SPE president Behrooz Fattahi, was the guest speaker at the Lloydminster lunch and learn presentation in April. Look for a report on his presentation titled, “Challenges of the Future” in the next edition of Pipeline News along with more news about the fall symposium.


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PIPELINE NEWS May 2010

New company but familiar faces: Legacy By Brian Zinchuk

Legacy Oil & Gas president & CEO Trent Yanko addresses the over 50 people who turned up for the company’s April 19 Weyburn open house.

Weyburn – For a company that’s only been around since last July, Legacy Oil & Gas was worth $912 million in market capitalization as of April 21, with most of their assets in southeast Saskatchewan. Not too shabby, but then, perhaps that’s to be expected from a management team that makes a habit of growing companies and then crystallizing the investment. Trent Yanko, the president and CEO, is on his sixth venture. The company held three open houses in southeast Saskatchewan Mar. 19-21, in Weyburn, Creelman and Roche Percee. Much of the management team was out for these events. So far, the company’s staff only numbers 30 employees, plus contracted production employees. The message Yanko wanted to get across was that while they may be a new company, they are familiar faces and familiar with the area and have a proven track record. Many of the players with Legacy have

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been around in other capacities, with other companies. “New, but with old names and faces,” said Yanko. Pipeline News got some one-on-one time with Yanko, someone whose name came up frequently in an interview last month with Grant Kook, CEO of Westcap Mgt Ltd., the company that manages the Golden Opportunities Fund. When Kook talks about “tier one management teams,” the first person he mentioned was Yanko and his group. Yanko, 43 is a professional engineer who earned his degree at the University of Regina. He is originally from Regina, but is now based in Calgary. He started at SaskOil, and moved to Lloydminster to work for the company for four years. After that, he began down the path of starting and growing companies. “We recapitalized Glamis. We took over the company in July,” Yanko said. Since then, they had completed five transactions, raised $215 million and purchased $535 million in assets. “That established our production base and undeveloped base,” he explained. “This is my sixth start-up of a new company. All ended in some crystallization of values, a sale or merger.” However, he said there is no expiry date on this venture. They looked at issues that cause other companies to flounder, like running out of capital or drilling locations, and endeavoured to ensure that doesn’t happen to them. “We can continue to grow over a number of years,” he said. “The strongest position we can be in is to have a clean balance sheet with low debt to cash flow, and lots of drilling upside. We try to keep the hopper full of drilling opportunities.” At the current rate, they have five years of inventory, he said. They were active in the April 12 Crown land sale, but he didn’t want to say how much. The company’s production is 97 per cent oil, and just three per cent in associated gas. “We’re an oil company in all definitions of the word,” Yanko said. They went after Connaught due to its Bakken holdings. After that acquisition, the company was renamed Legacy Oil & Gas. Their main thrust in 2010 and 2011 is developing the Bakken. They have in excess of 125 drilling locations. If you include down-spacing, that number climbs to 250. Much of that is close to the U.S. border, south of Estevan, where the wells are deeper that the typical Viewfield-area Bakken wells. That makes them more prolific, he explained, a function of depth and pressure. “We have an interest in 320 net wells,” he said. ɸ Page A15

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Trent Yanko, left, visits during the Legacy Oil & Gas’ Weyburn open house on Apr. 19. Yanko is president and CEO of the Àrm.

Legacy Oil & Gas ɺ Page A14 The company is looking to drill 78 gross, approximately 58 net wells in 2010. “We’re looking to spend $117 million, $110 million to go in southeast Saskatchewan.” About two-thirds of that is slated for Bakken development. However, he said, “We’ve never branded ourselves as just a Bakken play.” Their typical well will be a horizontal, multi-stage frac, which Yanko said is standard now. They also looking at the Torquay, also known as the Three Forks-Sanish, in the Antler area, where it is approximately 900 metres in depth. “We see that as a potential waterflood candidate,” he said. Asked if they are looking at CO2 enhanced oil recovery, as Tundra Oil and Gas is piloting just across the Manitoba border, Yanko responded, “Yes,” but added they would follow the typical primary, waterflood, and EOR path. “We can lever off their experience,” he said, using information in the public domain. Their Taylorton field is just 16 km from the Boundary Dam Power Station, where SaskPower is working on a carbon capture project, and needs wells to inject the CO2 into. Yanko said they are thinking about it internally, and there may be an opportunity to inject flue gas. He noted that the issue with carbon capture and storage is proximity to the source, and they are amongst the coal mining right now. “I think people have been supportive,” he said of their efforts. “We’re not done yet. We’re just getting going.”

Over 50 people attended Legacy Oil & Gas’ April 19 Weyburn open house.

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PIPELINE NEWS May 2010

Big Bore directional driller quick out of the gate Lloydminster – Big Bore Directional Drilling is a relative newcomer in the horizontal directional drilling market, but it’s already a force to be reckoned with. Big Bore, owned by Doug Fischer in Lloydminster, was launched in Red Deer, Edmonton and Lloydminster in August 2009 with one drill and a lot of

promise. Now the company has four drills, 12 employees, and its first manager, Des Ross, who is keeping crews organized and busy with most of the initial work in Alberta. “We have been able to expand our market share and we plan on continuing to do that,” said Ross, who came onboard Feb. 1.

“We are offering customers an honest day’s work for an honest day’s dollar – good value. There are a lot of guys out there doing directional boring, and there are a lot of guys out there doing it poorly. “We are trying to do it as efficiently as we can and be the best guys out there. That’s ultimately what our goal is – to be

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Des Ross, manager of Big Bore Directional Drilling is dwarfed by this Universal HDD 140 stationed at their Red Deer location. The company has a Áeet of four boring machines and its own support vehicles. Photo submitted

the best. Big Bore has two Ditch Witch borers and two Universal HDD machines with power ranges of 36,000, 80,000 and 140,000 lbs of thrust and pullback force.

Big Bore’s service menu includes oilfield, municipal and residential installations of pipelines, utilities cables, fibre optic cables, and gas and sewer lines crossing roadways and waterways and other environmentally sensitive areas. “Mostly what we have been doing is oil and gas pipelines. We are always looking to expand our market share in every area,” said Ross, who says Alberta is the hotbed for Big Bore’s services at the moment. “There is more business out that way,” he said. “There is more call for directional there than there is here. There is a lot more pipelining and single wells being pipelined into a facility and that type of stuff. “Here in Lloydminster all of the single wells go into tanks and it’s trucked. There is just more work in that neck of the woods.” Big Bore has a shop in Red Deer, an office in Edmonton and a fleet of trucks trailers, pickers and support vehicles. Some of truck and trailers are safety inspected and maintained at

Fischer’s Oil City Diesel Repair in Lloydminster, where business is also picking up. “We have done some work around here and we are looking at parking more of the drills here permanently. “What I’d like to see is a fleet of 12 to 16 drills strategically located throughout Alberta and Saskatchewan,” said Ross. “I would like to see us become number one in the HD and boring business.” Currently, Big Bore has a shop in Red Deer, some staff in Edmonton and a fleet of trucks trailers, pickers and support vehicles. Big Bore is poised to capitalize on the trend toward horizontal direction drilling as an environmentally friendly, efficient and safer alternative to surface trenching. “It doesn’t disturb ground,” said Ross. “If you are running a pipeline under a road, you don’t have to dig the road up. If you are running your pipeline underneath someone else’s pipeline you don’t have to worry about digging their pipeline up. ɸ Page A19


PIPELINE NEWS May 2010

Experience shows that ef¿ciency is key ɺ Page A18 There are also environmental considerations. When you come to a river or a creek you can’t be digging a river up, so you bore underneath it. From a business perspective Ross knows from experience that efficiency is the key to profitable oilfield drilling. “The more efficient you are the more efficient is your customer because they’ve got other equipment tied up. They are waiting for you,” he said. Ross comes into the job with years of handson and managing experience most notably with Fischer’s first business Allstar Oilfield Services in Lloydminster that operated flusbys, vac trucks, pressure trucks, steamers and hydrovacs. When Eveready Energy Services purchased Allstar, both men worked together again with Fischer as regional manager and Ross as an area manager of employees and a fleet of 68 units. Eveready was in turn, bought by another company in 2009, and shortly after Fischer launched Big Bore then offered Ross a job. “It’s a challenge,” said Ross of his new job. “A lot of the stuff is new to me and I kind of learn as we go. A lot of it is common sense too.” As a safety coordinator Ross says it’s his job to make sure all of his employees get home safely and in one piece and not harm any equipment or the environment. “Our employees are some of the best guys in the industry, so we were lucky that way,” he said. “We rely on them to train any new hires. Right now, we don’t have anybody on staff with less than five years experience.” As for marketing Big Bore Ross said, “We are flipping a lot rocks. We are knocking on doors and advertising in your paper and growing by word of mouth from some of the people we work with. A satisfied customer is a repeat customer. Ultimately that’s the goal – every time we go out there, we are leaving the guy happy, so he’s calling us back.”

Ritchie Bros. co-founder sells yacht for $46 million It seems selling heavy equipment at auction has its perks. Dave Ritchie is one of the co-founders of Ritchie Bros., the big dog when it comes to heavy equipment auctions in Western Canada. However, it was one of his own items going up for bid that drew headlines on Mar. 31. The Financial Post reported that Dave Ritchie’s 220-ft. yacht Apoise sold for $46 million in a public auction in the Cayman Islands on Mar. 30. “Bidding for the ship, formerly owned by Ritchie Bros. co-founder Dave Ritchie, opened at US $20-million and was sold within 15 minutes,” the Financial Post reported, adding, “Not surprisingly, Mr. Ritchie said he was “really pleased” with the sale.” The yacht was listed as the 89th largest in the world.

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A20

PIPELINE NEWS May 2010

Busy, bumpy oilpatch steer business to Kep Industries

Erhard and Evelyn Poggemiller have owned and operator Kep Industries Ltd. since 1978. Photo by Geoff Lee Troy Illingworth Cell: (780) 808-3183 Tim Sharp Cell: (780) 871-1276

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Kerrobert – Erhard Poggemiller and his wife Evelyn, who own and operate Kep Industries Ltd. in Kerrobert, are bilingual in “ag and oil speak” as a manufacturer and dealer of agricultural and industrial products. With oil and gas now on the upside, most of Kep Industries’ business is conducted in the language of their oilpatch clients for SGI inspections on trucks and trailers, oilfield repairs, custom manufacturing, and auto air conditioning repairs and service. Farm talk is not heard as often, but Kep Industries stocks recycled air filters and umpteen parts for oilfield related vehicles and the agricultural market that used to dominate the business chatter. “It’s switched,” said Poggemiller who voiced no worry about which hat to wear for the interview. “It used to be 90 per cent agriculture, and now we are about 75 per cent oilfield related and about 25 per cent agriculture. “The oilfield kicked in big time in the ’90s and in the last number of years especially. Ever since we had a change in government, there has been a fair bit of increase in oilfield activity. “Kerrobert is very uniquely positioned in the oilfield even in the existing (original) oilfield which is Coleville and that area. We get a lot of business from the whole area. It comes through town here. “Now, we carry a lot of supplies related to heavy trucks and trailers in the oilfield. We are kind of a general store for parts and supplies to do with the oilfield.” Kep Industries has shelves filled with everything from hydraulic fittings and bearings and seals to plumbing parts and nuts and bolts related to oilfield business. The resurgence of oil and gas exploration and drilling, pipeline construction and oilfield servicing in the area, sends a steady stream of vehicles to the Kep Industries’ shop for semi-annual and annual safety inspections. SGI requires two inspections a year for a highway tractor, and one a year for a trailer or a truck that doesn’t pull a fifth wheel. ɸ Page A21


PIPELINE NEWS May 2010

A21

Inspection related repairs keeps KEP Industries busy

Kep Industries owner Erhard Poggemiller is kept busy with oilÀeld SGI safety inspections and fabrication in his back shop.

Foreman Mike Warkentin conducts an SGI safety inspection on an oilÀeld truck.

ɺ Page A20 “For inspections, we do heavy duty stuff from 3/4 ton trucks and all the way up,” said Poggemiller. “It’s a total inspection. It takes about two hours to do and that’s just an inspection. That’s not doing any work. “We do some heavy duty repairs related to those inspections, and we are also seeing a lot of agriculture people coming in here doing the same thing – getting their trucks inspected – and bringing them up to standard. The same rules apply. “The highway traffic guys – the RCMP we know around here, are telling us that with commercial units, the safety standards have greatly improved on the roads, which has been a big help.” Poggemiller is a former mayor of Kerrobert whose sources tell him oil activity could boom this summer as it did last summer to the benefit of the business community. “It has started to pick up now already, but from what I am hearing it’s not the big companies, but it’s a lot of smaller companies that are starting to drill out here,” he said. “There is usually a lot of spinoff from that. Also a lot of the stuff comes in from Alberta, and anyone who comes from Alberta, and has a lot of vehicles that are going to be in the province for awhile, is required to have certification to operate in the

province.” Alliance Pipeline Ltd, Inter Pipeline Fund, and Enbridge Pipelines Inc. are some of the major energy companies with pipeline networks and facilities in the Kerrobert area. Enbridge, which operates the Kerrobert Terminal west of town built a section of the Alberta Clipper pipeline near Kerrobert last year. Poggemiller says the buzz is that another pipeline will be built this year. “I heard there was going to be some other oilfield lines coming through here too from other companies, but I can’t remember what the name is,” he said. “Last year we had a big year. The main line (Clipper) went through, and that helped the town immensely. We were running out of space to accommodate people. Some people bought some lots and put campsites on them. “It’s a really big deal and we were fortunate. The pipeline crews were very good in supporting the local economy. “They didn’t bring everything in and do everything on their own. They supported the local economy. “A lot of the stuff in this community has been done as a result of oil and gas. A lot of the funding that comes from different projects comes from oil and gas. Kerrobert has expanded not because of agriculture, but because

of oil and gas.” The growing oil and gas industry also brings in custom fabrication orders that Poggemiller says tend to be for one of a kind projects. “Usually, it is something they can’t just buy off the shelf,” he said. “It’s a one of a kind thing. They may want a stand out in the oilfield that will hold pipe or ladders to fit on tanks.” At one time, Kep Industries used to manufacture rebuilt air filters but Poggemiller says they sold that off a few years ago and now have two employees. “It was very labour intensive, and hard to find people for that,” he said. “Right now, we are comfortable with what we do and how many employees we’ve got. They are trained to do what they do. It’s a lot less headache for us.


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PIPELINE NEWS May 2010

Transport bookkeeping a specialty for Allstar Ventures Lloydminster – Businesses need to turn a profit to succeed. With that in mind, Doug Fischer who owns Oil City Diesel Repair and Big Bore Directional Drilling launched Allstar Ventures Ltd. bookkeeping service in March to help other small businesses keep track of their bottom line. “Good bookkeepers are extremely important,” said Fischer. “They know dayto-day, how your expenses are compared to your income. “A lot of owner-operators and companies don’t know where they are at regarding revenue to expenses. We should be able to let them know daily where they are at. “We will do any bookkeeping, but we will specialize in the transport area. We know how to get permits for the tri-axles and how to deal with the Saskatchewan government with big trucks and deal with the safety side of the operation of trucking.” The new business, spelled with a small letter “a” on corporate letterhead, is headed by Dot Andrews, a former office manager and Doreen Kilbreath, the staff bookkeeper for Oil City. “For clients, basically we are looking for owner-operators and small oilfield service operations,” said Andrews. “They need an office, but they don’t need an office full-time. We’d like to provide full office services for them. We provide almost anything in the administrative line. We can do bookkeeping, make sure they meet their deadlines, and take care of any reporting they have. “In the transport area, we certainly understand the problems. There are probably more regulations covering these guys, so we would like to help them meet those regulations.” Andrews was the bookkeeper for Fischer’s first business, Allstar Oilfield Services, that was bought out by Eveready in 2005.

Doreen Kilbreath and Dot Andrews head up Allstar Ventures bookkeeping.

When Eveready was in turn purchased last year by another company, Fisher found an opportunity to start Big Bore and Andrews followed suit this March to help launch Allstar Ventures. “Dot has been a big inspiration,” said Fischer. “She has the experience behind her with Eveready and Allstar Oilfield so she knows what she’s doing.” Andrew is certainly excited about her new challenge as the head bookkeeper and says he loves her work. ɸ Page A23

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PIPELINE NEWS May 2010

It’s in the books

ɺ Page A22 “I like to take something that’s really messy and nasty with bookkeeping, and I like to take it and put it into a structure and a framework – and when you are finished – it’s something everyone can look at, and they know exactly what it says from a financial point of view.” Fischer and Andrews are hiring additional bookkeepers for Allstar to meet a steady demand from owner operators for added-value bookkeeping that meet their line of work. “The owner-operator wants to make money,” said Fisher. “The less time he spends on administration the more time he’s available to be out earning revenue. “We both know what we saw previously, and the services that the independent owner operators received. We felt we could do a better job. Doug brought me over to do his bookkeeping. “We thought we could take bookkeeping that one step further and provide them with more of what they need than just a bookkeeping service. “We found from our experience with lease operators and the service they were getting from their accountants – I don’t think was very good. “They were accountants who just did bookkeeping. They didn’t have the specialized knowledge that Doreen and I do.” Allstar Ventures will offer monthly and annual bookkeeping services including payroll, WCB reporting, E-billing services and GST reporting along

with acquiring permits, licensing, IFTA International Fuel Tax Agreement requirements and administrative safety services. “The specialized transport part of it, you have to learn on the job,” said Andrews. “There is no place you can go for training like that. “There are GST deadlines. There’s WCB reporting. You have your permits and your licensing that has to be looked after. “You have to keep track of safety tickets and orientations and safety issues for your trucks. “I think because you are so heavily regulated you have to make sure all of your reporting requirements are met. “You are frequently pro-rated in different province so you have different WCB reporting and GST reporting. We would like to bring it up to the point where tax planning takes place. “We can also write letters for them depending on what they need.” With Allstar Ventures in good hands, Fischer is free to work on growing Big Bore Directional Drilling that he started last August specializing in pipeline boring. See related story on Page A18. “We are going to try to focus a little more on the Lloydminster area. More of our growth will come from Big Bore,” said Fischer. “It’s exciting, but the whole key to running a good business is hiring the right people,” said Fisher.

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PIPELINE NEWS May 2010

Border Bike Rally becoming a well-oiled event Lloydminster – The Lloydminster Lions Club 2010 Border Bike Rally, to be held June 18-19, promises to be

the biggest and best yet with a fundraising goal of $40,000 to $50,000 for community causes. “We have increased

our attendance volume every year,” said Lions’ fundraising and rally chair Nick Laley. “This is our fourth year. We are

expecting 700 to 1,000 bikes and we expect about 200 classic cars.” There will also be the ever popular biker rodeo, bike and car show and shines, a poker run, live bands and a trade show – for a summer event that is drawing a lot of support from the oilpatch. “A lot of people own bikes and many people in the oilpatch have a bike,” said Laley. “They see the significance of this.

Motorcyclist from all walks of live will take part in the 2010 Border Bike Rally in Lloydminster. Photo by B&R Photography Ltd.

“The Lions are pretty big in Lloydminster. We have been around for more than 60 years in the community. It’s a way for them to be giving. We are in turn, giving them an event and a party. “Oil and gas companies also donate door prizes or even make prizes for us. Last year, we had a welding shop make a custom bench. The oil and gas companies help us out quite a bit. It’s awesome really.”

Western Plains Petroleum Ltd., Raider Well Servicing and Classic Oilfield Service Ltd. are listed among the major event sponsors. In keeping with a fundraising strategy to add a new event each year, Alberta vintage flat track bike racing will debut at the horse racing track at the exhibition grounds. “We want to change it a little bit every year so people say ‘We gotta go there.’ The flat track will be a big thing this year,” said Laley. “It’s the first year here, so it’s a non-sanctioned race by the Alberta Vintage Flat Track Racing Association. “We are just trying it out and see how it works with the public. I think it will work good. “They said this is the best track they have ever been on. It’s the widest and the biggest. We have even got some people coming up from the States.” The Border Bike Rally is the biggest and most exciting fundraiser of the year for the Lloydminster Lions, boosted by sponsorships and donations from oil and gas companies. ɸ Page A25


PIPELINE NEWS May 2010

A25

Excitement is beginning to build

Border Bike Rally 2010 will feature more than 200 classic autos. Photo by B&R Photography Ltd.

ɺ Page A24 “They provide us with funds and prizes,” said Laley. “We sell them advertising for our program guide, and they also help to sponsor the bands.” This year, there will be five bands including Prism, Kenny Shields and Street Heat booked for the Saturday night cabaret, and excitement is beginning to build. Hundreds of local and out-of-town bikers including many riders from the oilpatch are expected to sign up for the $10 per person poker run that drew 315 riders last year on a cold summer’s day. “This year we are planning on going to Vermilion, Wainwright and back,” said Laley. “We call it the White Cane Run since all proceeds are donated to the CNIB.” Other proceeds from the bike rally go toward the Lions’s Quest (Thrive) program for youth citizenship programs offered at most area schools. Additional funds are raised from the sale of weekend passes to all events including overnight camping without power for $40 or admittance to the popular Saturday cabaret for $30 per person. Public admission to the grounds is $5 on the opening Friday with children 12 and under free. Saturday’s admission is $7 with children 12 and under free. “It’s a family type rally and we want the public to come and see it too,” said Laley. “If you get a couple of hundred muscle cars and antique cars, it’s nice

to see too. Last year, we had 140 cars at the show and shine.” The Classic Car and Hot Rod Show will be sponsored by the Lloydminster Just Kruzin car club. Raffle tickets are being sold at the border bike rally website for

$20 each for a chance to win the grand prize – a 1500cc Suzuki Boulevard motorcycle. There are runner-up prizes for a 50-inch Samsung plasma TV, and a Garmin 660 GPS for motorcycles or passenger vehicles. The early bird draw is for a $500 fuel voucher.

A bike rodeo will be included once again in this year’s Border Bike Rally. Photo by B&R Photography Ltd.

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PIPELINE NEWS May 2010

Oilpatch relies on Maverick for mulching solutions Saskatoon –There is a right tool for every job. The handyman’s creed also applies to the lightfooted mulchers and shredders deployed by Maverick Construction Ltd. to provide oil and gas customers in Western Canada with top quality shredding and land clearing services with minimal ground disturbance. Maverick specializes in providing brushing and mulching solutions for seismic clearing, lease site preparation and access road clearing with environmentally-friendly equipment based in Saskatoon and Sylvan Lake in Alberta. “We have a variety of different machines, and what we do is customize most of our machines,” said company owner Ron Bodnar in Saskatoon. “We have been in mulching business for 10 years. We have certainly found out there is no such thing as an off-the-shelf machine. “It takes years to determine what you need for the appropriate horsepower for the mulching end, and the diverted power to the tracks.” Maverick will order a shredding or mulching unit from a manufacturer with a list of specifications, then modify it for weight and power, and customize it to certain widths and features. “It’s our own customized brand,” said Bodnar. “We will use different parts from Caterpillar, John

Maverick has a new mulcher that reaches 22 feet from the machine for those hard to get areas. Photo submitted

Deere and Berko. We will go to a manufacturer and say this is how we want it spec’d. “Our specifications, our modification and our customizations are important. Those are the three things we do to have the appropriate machine.” All of Maverick’s versatile land clearing units are equipped with GPS, 2-way radios and come with customized bush guarding and auxiliary fuel storage capacity. “It’s important to customize the machine, but after that, it’s important to place the appropriate ma-

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chine for the appropriate job,” said Bodnar. “With the equipment, we match the proper mulcher for the proper job in size and power, and with the imprint that we leave. We follow protocol, so we don’t leave marks on the top surface, and there aren’t all these tracks and divots. “Ground pressure is a big thing in the environment. We will bring in the proper weight of the machines. “The other part of being environmentally friendly is to be as unobstrusive as you can possibly be in the bush. You want to do the job of seismic clearing and leave it like we were never there.” Maverick uses biodegradable hydraulic oil in its units for extra environmental protection and is in the process of switching some of its older diesel engines to a new fuel-saving diesel engine. More equipment modifications are possible as Maverick uses the spring break-up to maintain and improve their machines. “We are right around the corner for late spring and summer work to start up again,” said Bodnar. “We don’t take too much of a break. We just kind of go through a full maintenance program.” With oil steadily rising during the winter over the $80 a barrel mark, Maverick picked up a lot of seismic and road clearing work in northern Saskatchewan and northern Alberta. “For access reasons, most of the mulching and clearing for oil companies is done in the winter time in a lot of the northern areas because of the opportunity to go on the muskeg,” said Bodnar. “We like to use lighter machines. That’s a big thing with environment nowadays. “Most of the work in Alberta is in the Fort Mac area. If you were there this winter, you kind of wouldn’t know there was a recession. Things are pretty busy. It’s buzzing around. “It seems to be the pace of work is picking up faster than last year. I am pretty sure it’s got to do with the dollar figure on oil. It’s a positive activity and I think it’s also due to what’s happening in the United States. Economic recovery is obviously around the corner.” Maverick is also attracting more business from the military lately as it latches on to the benefits of environmentally friendly land clearing as an attractive alternative to using a heavy Cat or a chain saw. “The oil and gas sector is the main focus of our business,” said Bodnar. “They are our number one client. “We take the hassle of working for a land clearing company because of the fact we’ve got the experience. We provide solutions. We provide scouting services, a lot of GPS services, and a good past relationship with customers. “We are not a company that needs a lot of babysitting. We provide solutions. Our clients like to deal with us. They want to see us on site. “We continually strive to improve methods of operation and increase productivity. Our team holds a unique pool of knowledge and experience.” Bodnar say he is also busy because Maverick is known to follow all of the safety practices in Western Canada and boasts a zero incidents record to date. It also helps that that Maverick operates their own equipment transportation company with a fleet of semis and support vehicles. “Our semis are dedicated to hauling out units,” said Bodnar. “One feature that our customers like is, when we take our mulchers to the job site, the transport units stay with the machines rather than custom haul. “You can’t demobilize fast enough. By the time you book a semi and get someone else to come up in two or three days – we can react right now, load up and get the heck going. “We can mobilize and demobilize very fast to the site. We also have special equipment that can haul to the seismic program. “If you have a larger winter program that is spread out over a few miles, we can move our equipment within that program as well.”


PIPELINE NEWS May 2010

A27

Kerrobert Bakery goodies energize the local oilpatch Kerrobert – The Kerrobert Bakery and Coffee Bar is the most popular filling station in town for many oil and gas workers on the go who stop by to top off their stomachs with a hearty breakfast and lunch in a bag. The oilpatch has been good to bakery owners Tammy and Leighton Krahn, who bought the downtown business two and a half years ago, in time for a miniboom from local pipeline construction. “Our first summer was first major pipeline coming through, and it was a huge boom for us,” said Tammy during a busy lunch hour. Based on feedback from that first season, the couple now opens at 6 a.m. and sometimes earlier to serve breakfast and make lunches for early rising oilfield crews. “They really appreciate that especially since they start so early,” said Tammy. “Some of the guys will order for the next day, and we will have it ready for them in the morning. They can grab it on their way to work. “Sometime when they are having safety meetings they will order lunch from us. That’s pretty big for us too.” Lunch is a soup and sandwich concept with made to order subs and wraps with a mouth- watering lists of meats, cheeses, sauces, toppings and baked bread to choose from. “The bakery is the main part of the business because we also supply grocery stores in at least half a dozen other surrounding communities” said Tammy. “We do a lot of wholesale baking for restaurants too.” The Krahns bought the bakery to satisfy their own hunger to own a business, although that meant giving up their professional careers. Tammy worked at the Royal Bank while Leighton was employed by IBM. “We both had professional jobs, but we both got tired of sitting behind a desk,” explained Tammy. “This is totally different. My husband was working in a basement basically, and he needed to get out. “He likes to be face to face with people. He loves to cook and he loves to be able to cook for people. He starts at 3 a.m. and does all of the baking. “He will deliver and then go and have a sleep and be back in the afternoon to do some preparation for the next day. I manage the restaurant, and the front end of it too.” The Kerrobert Bakery has been a fixture in town for over 50 years and has an appealing funky atmosphere and décor. The dining area features an old fashioned u-shaped lunch counter with swivel chairs as the centre piece that is great for single eaters and conversations. “I think the locals enjoy it,” said Tammy, who hopes the talks she hears at

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Waitress Amber Richelhoff and Tammy Krahn react to the punch line of a customer’s joke.

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A28

PIPELINE NEWS May 2010

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Daniela Tobler Sales Manager


PIPELINE NEWS May 2010

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Western Plains buys a stake in Nordic’s Lloydminster oil play Lloydminster – It’s one of those win-win deals. Western Plains Petroleum Ltd., a Lloydminster Alberta-based junior heavy oil producer has acquired a 50 per cent stake in Nordic Oil and Gas Ltd.’s land holdings and heavy oil wells in the Lloydminster area for $2.5 million. The agreement was announced April 13 with Western Plains paying Nordic $2.1 million in cash and $400,000 of its Class A common shares. The agreement provides Nordic with much needed cash for further capital expenditures in the area while allowing Western Plains to play its strong card as an operator. “We are indeed excited at the opportunity of working with Nordic Oil and Gas Ltd. in Lloydminster,” said David Forrest, president and chief executive officer of Western Plains. “Our strength has always been that of an operator and together, with Nordic’s strong land holdings in the area, I’m sure both companies will significantly benefit from this agreement.” Forrest has more than 15 years experience developing heavy oil plays located around Lloydminster and Maidstone. He founded IC Energy Ltd., a private oil and gas exploration and production company, building production to approximately 750 barrels of oil equivalent per day, with petroleum and natural gas leases totaling 5,440 acres, before selling to Arsenal Energy Inc. in 2005, for $10 million. It is anticipated that Western Plains will commence bringing on the five new wells that Nordic drilled at the end of 2009 as soon as possible, resulting in almost immediate production. In addition, Western Plains will also turn its attention to some of the maintenance issues facing Nordic’s other nine wells, meaning that all 14 wells are expected to be on full production in short order. Under the agree-

ment, Nordic will retain a 50 per cent interest in its Lloydminster land holdings and heavy oil wells and is already eyeing new opportunities for growth in the Lloydminster area. “This is a deal of significant magnitude and importance for Nordic Oil and Gas Ltd.,” said Donald Benson, president and CEO of Nordic. “Firstly, it provides us with a much needed influx of capital which will allow us to move forward on numerous fronts. “Secondly, we could not be more pleased to be associated and working with Western Plains, an experienced, competent and successful operator in the Lloydminster region. “I am confident that with their skill and expertise, we will see the value of our property strengthen considerably in the coming months, leading to solid cash flow and many new growth opportunities for us in Lloydminster,” he added. “Furthermore, I see this strategic alliance as a stepping stone to other deals with Western Plains down the road.” Nordic Oil and Gas Ltd. is a junior oil and gas company engaged in the exploration and development of oil, natural gas and coal bed methane in Alberta and Saskatchewan.

Nordic Oil and Gas Ltd. has sold a 50 per cent interest in its Lloydminster heavy oil wells and land holdings to Western Plains Petroleum Ltd. Here, a Nordic well is drilled last November. File Photo

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PIPELINE NEWS May 2010

Oil and gas explorer Diaz sails into calmer waters Calgary –Smoother sailing is ahead for Diaz Resources in 2010, as the Calgary gas and oil explorer emerges from rough economic waters and the shelter of heavy oil production in the Lloydminster area. Diaz drilled three producing heavy oil horizontal wells in the fourth quarter of 2009 and plans to put them into production in coming weeks, according its year-end results and reserves summary released April 1. The company reports it has raised approximately $1.2 million to fund its continuing Lloydminster heavy oil development program and expects to exit 2010 with almost half of its production derived from oil sales. To further right its financial ship in 2010, Diaz is locking in approximately half of its anticipated 2010 natural gas prices at fixed gas price contracts in excess of $5.75 per Mcf, higher than current market values. The new exploration and financial course with the focus on heavy oil follows a stormy 2009 as for Diaz as noted in the summary. The company’s total production for 2009 decreased 28 per cent to 642 barrels of oil equivalent per day, compared with the prior year average of 886 BOE/d. Diaz’s total reserves before royalties at year end were estimated at 3.8 million BOE. In Canada, production for the year decreased 21 per cent as a result of the sale of production of its Carmangay and Parkman fields and a significant drop in production from the Leahurst and Big Bend fields. In the U.S., production rates for the year fell by 45 per cent as mature well production declines combined with the abandonment of the Black Owl field. Diaz was rocked by the effects of the global recession that nearly drowned the value of its U.S. natural gas assets with an oversupply and drop in prices and tightened borrowing in capital markets.

To keep afloat, Diaz put in place fixed gas price contracts for half of its 2009 production and stepped up its exploration and development on heavy oil projects. The company also raised $4. 4 million in 2009 from the sales of properties in Canada and the U.S. with plans to sell its remaining U.S. producing assets, which area mostly natural gas, when gas prices recover to more marketable prices.

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Diaz’s financial strategy, combined with some fundraising, led to a reduction of debt from $8.5 million in January, 2009 to $5.8 million at year end with available capital directed to exploration and development in heavy oil. In 2009 Diaz also acquired development projects in the Lloydminster Alberta area and in Shaunavon, Bird Bear and Viking oil plays in Saskatchewan.

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PIPELINE NEWS May 2010

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PIPELINE NEWS Saskatchewan’s Petroleum Monthly

B-Section May 2010

Redhead braces for après road ban sales frenzy Case and Volvo construction equipment are prominently displayed at Redhead Equipment in Lloydminster.

By Geoff Lee Regina – The end of seasonal road bans incites what Redhead Equipment Ltd. believes is one its equipment sales wonders of the year at six locations in Saskatchewan. That’s the word from Craig Slobodian, sales manager of Redhead’s construction division in Regina, who said in late April, “As soon as road bans come off, all hell breaks loose and our yard empties.” Right now, the service side of the business is having a field day as Redhead’s service departments book checkup appointments for the full line up of heavy duty trucks and construction, agriculture, oil and gas and forestry equipment the company sells. “People are getting ready for a new season,” said Slobodian. “We see that on all sides. On the agriculture side, guys are getting their equipment ready for seeding and the construction guys – absolutely. “They are taking advantage of their uncontrolled downtime due to road bans and making sure their equipment is serviced and ready to go.” Redhead also has approximately 30 fully equipped service trucks to deliver vehicle and equipment service in the field. “Redhead has built its reputation on service,” said Slobodian. “We are basically like a lot car lot. We sell it, service it, fix it, sell parts, and we do rentals and

Looking For A

leases – basically touching all sectors of the construction equipment side.” Redhead operates sales and service dealerships for Case Equipment, Volvo Construction Equipment, Mack Trucks and Case IH farm equipment in Lloydminster, Saskatoon, Estevan and Swift Current. The Regina sales location specializes in the sales and service of construction equipment and trucks. In general, the big movers in oilfield equipment on Redhead’s sales lots are excavators, skid steers, wheel loaders, crawler dozers, motor graders and loader backhoes in many makes and models from Case, Volvo, Terex, Takeuchi and Astec. “With excavators you can do pipelining work with them,” said Slobodian. “A lot of guys use wheel loaders to move matting and pipe with pipe grapples.” Wheel loaders are often used for moving gravel and dirt, while dozers and motor graders are often put to work building or maintaining lease sites. The backhoe is one of the most versatile vehicles for all industry sectors with the Case backhoe topping the sales charts at Redhead. “It has a lot of history and a lot of features,” said Slobodian. “A lot of guys have been running them forever and when it comes time to buy another one they look at Case. “Case is in an innovator. They have lots of produc-

tivity features and it’s just an overall industry leader. Redhead has its roots in the construction equipment market dating back to 1948, when it was a Champion motor grader dealer under the name of W.F. Fuller Machinery Limited. Gordon Redhead bought and renamed the business in 1968 keeping the head office in Regina. His son Gary purchased his father’s interest in 1980 and still heads it today with more makes and models for sale. “The longest account we have is the construction account,” said Slobodian. “We came from construction roots. Volvo bought Champion in 1997, and as a result we were able to take on the full Volvo construction line. “It’s been fantastic for us. Volvo has a great reputation – good on fuel, quality and safety. Volvo makes some equipment that is larger than what we have on the Case side.” Volvo makes rock trucks, motor graders, backhoes, excavators and loaders used by oil and gas companies and contractors. Redhead also sells a full range heavy haul trucks by Mack including water trucks, pickers and vac trucks for the oil and gas industry. They also sell some Astec horizontal directional drill machines and a selection of mulchers. ɸ Page B2

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B2

PIPELINE NEWS May 2010

Redhead equipment built on diversity ɺ Page B1 All Redhead locations offer customers short and long term rentals, rental purchases and sales of rental equipment. “Redhead has built the company on diversity,” said Slobodian. “If one sector seems to slide a little bit, we’ve got another one that takes off. “Every once in a while like in 2008, you have a year when all cylinders fire and there is no downside. “Last year construction was down a bit and agriculture was up. All predictions are that things are going to take off this year. “The reports were that oil needed to be stable in the $70 to $80 (per barrel) range, and we’ve been there now for awhile. “We’ve got that stability going and we are into a new year with new budgets for most of the oil companies. “Saskatchewan doesn’t seem to be developed to the extent that Alberta has, so there is still a lot of exploration and drilling going on. There is a lot of new activity going on.” Slobodian sees stronger oil activity ahead at all sales points with Estevan, Swift Current and Lloydminster leading the way along with steady growth in the agriculture sector. “In Saskatchewan, it seems that every farmer has another job,” said Slobodian. “A lot of those guys who are working in the oilfield also farm on the side. It does quite well for us. A lot of our customers deal with multiple sectors of our business. “Farmers need to move grain so they need trucks. Farmers have drainage problems so they need to dig a trench with a backhoe or bury rocks. They use skid steers to feed their cattle. It all keeps feeding each other. “There are a lot of guys who farm who maybe drive a water truck or they have a backhoe that they run as a contract in the oilpatch and all that kind of stuff. Lots of guys have duel jobs.”

Slobodian doesn’t expect a return to the boom times soon but the memory of the “call of Alberta” as he puts it is still fresh in his mind. “We had guys from all parts of Saskatchewan going and taking contracts in Fort McMurray and Conklin and wherever,” he said. “Because their roots are here, there were buying equipment here and taking it up there to make their fortune.” This Volvo wheel loader is made for moving gravel and earth. Rick Allan at Redhead in Lloydminster says the major manufacturers are focusing on reducing emissions to the highest Tier 4 standards.

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PIPELINE NEWS May 2010

B3

In the market for Thorpe naming rights Lloydminster – As the steel frame begins to rise for the new Thorpe Recovery Centre (TRC) so do expectations that the $16.25-million addictions treatment facility will meet its $3 million capital funding raising target. The Alberta government is contributing $10 million toward the capital cost with balance of funds anticipated from the federal and Saskatchewan government. The TRC has raised just over $1 million in its Building Hope Campaign. Plans are afoot to launch the final community-wide phase of its Building Hope Campaign in June, but that’s not stopping oilpatch companies from continuing to donate to the current leadership and major gift giving phase. “The building project started in spring of 2009, and we really got active in fundraising later last year in approaching industry,” said Stan Parke, marketing coordinator. “It’s been in what we call the quiet phase. We haven’t made a big public notice about it yet. That’s coming up in June. “It’s pretty public now, but we haven’t put up a ‘thermometer’ yet or put notices in the paper. We are excited. All industries are telling us they are coming off a tough year. We understand that, but we’re excited.” Enthusiasm grows as large do-

Management teams from Grit Industries Inc. and Grithog Sand Control Systems Ltd and the Thorpe Recovery Centre visited the construction site of the new Thorpe centre in Blackfoot, Alta., west of Lloydminster. Grit donated $100,000 toward the cost of the new addictions treatment centre. Photo by Grit Industries Inc.

nations make the news including $125,000 from Husky Energy in March for the naming rights to the new youth dining room. Grit Industries Inc. and Grithog Sand Control Systems got the ball rolling in February with their combined $100,000 donation for the naming rights for two lecture rooms. “There are several different levels of naming rights left,” said Parke. “There’s the adult dining room as an example. “The biggest of all is the gymnasium. We’ve got everything from lecture rooms and counseling rooms to

outdoor recreation courts and walking paths that we have naming rights for. There are lots of opportunities.” The Building Hope Campaign also extends to local service clubs, TRC board member pledges and donations from recovered clients and their respective family members. “The next phase breaks out into our community division,” said Danika McCullogh fund development coordinator. “That will include all aspects of the community.” “Because we are still in that quiet phase, we don’t want people to know about the whole donation process yet.

We are still trying to work around more of the businesses in our leadership and gift phase first.” The new TRC will provide a wide range of services and support for youths and adults seeking recovery treatment for alcohol, drugs and gambling addiction. The facility will feature a 72-bed residential treatment program and a full suite of detoxification, outpatient, prevention services, post treatment programs and family programs. The new centre will make room for 42 adult and 10 youth residential treatment beds and 20 detoxification beds, up from the six in the existing centre. Tours of the new TRC will be available as construction progresses and Parke says he is eager to share “our hope and vision” with oil companies who want to donate. “The thing they need to know is that when they are donating we are accredited, but they are also making a difference in people lives,” he said. “We have being doing this since 1975 and we will make a difference.” Parke is touring and speaking with oil and gas companies in Alberta and Saskatchewan where he says they are beginning to see addictions in the workplace as an occupational and safety issue. “The oil companies that have stepped forward are very strong supporters of us,” said Parke. ɸ Page B5

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Companies recognize addiction problems ɺ Page B3 “The industry recognizes the safety issues around people either working while impaired or under an addiction of some sort. It’s a huge safety risk to these companies and they recognize that. “Because of the way we are structured we can offer almost immediately a bed on a self-paid basis.” The TRC operates as a nonprofit society and also administers Harris House, a 14-bed post treatment residence for men located downtown Lloydminster. TRC will continue to operate its downtown outpatient and walk-in centre that provides counseling, workshops and community awareness and prevention services. The current three-day program for families and friends of people in treatment will expanded at the new TRC, located west of Lloydminster near Blackfoot on Highway 16. The existing building has been sold and program inquiries are up as word

spreads about the construction of the new centre and its treatment programs. “If oil and gas companies are looking for information on how to build a program or how to build a drug policy, they can give us a call,” said Parke. “We will come to you and give you a structure and something that will start to work. We all know what to do when a person has an accident – we phone 911. For addictions, 911 is not going to work.” Parke says the questions he’s hearing from people in the oilpatch are, where do I turn and who do I call? “People have a legal obligation to seek treatment for employees,” said Parke. “Addictions are recognized today more and more as a disease and therefore you can’t turn a blind eye. Call us. “An employer is a very powerful individual when it comes to seeking an employee’s treatment. We like to think that we offer a good solution. “We also work with other professionals. We work with concurrent disorders. We are one of the leaders in embracing that idea.”

Gas Trak SuprSnifr has a nose for pipeline gas leaks Lloydminster – If methane leaking from pipelines were a clearly visible gas, phones would be ringing off the hook to authorities to halt emissions, as methane is 22 times more potent than CO2 as a greenhouse gas. Methane leaks from pipeline systems average approximately four million cubic feet per year, per leak, and some of the largest leaks can emit more than 250,000 cubic feet of gas per day. These are some of the more alarming facts that caught the attention of the March Lloydminster SPE Lunch ‘N Learn audience during a presentation on pipeline leak detection by Peter Wolski, president of Gas Trak Ltd. in Medicine Hat. Gas Trak is the developer of the SuprSnifr flame ionization system that companies such as Pro Line Locators in Lloydminster, Line Hunters Locating in Drumheller and First Alert Locating in Grande Prairie are using to detect pipeline leaks in Alberta

and Saskatchewan. From 2000 to 2008, Gas Trak and its service providers, located 978 methane leaks, with more to be added to the database from the last couple of years. “Gas leaks result in the loss of a valuable resource to the point of sale,” said Wolski, who noted the average leak costs producers about $50,000 a year in the value of natural gas. It can also cost them approximately $35,000 to clean up soil contaminated by produced fluids. Most leaks are primarily attributed to internal corrosion from sulphur reducing bacteria while a small number are due to mechanic damage from equipment, faulty welds and lightning. Any produced fluids spilled on the ground can cause the soil to become hydrophobic, eventually destroying surrounding crops and vegetation. Wolski says the traditional and alternative methods of detecting pipeline leaks, including walking or

riding an ATV over the right of ways or aerial surveys, can’t compare to the SuprSnifr when it comes to speed, accuracy, cost effectiveness and safety. The SuprSnifr uses an extremely sensitive and stable flame ionization device mounted inside a pickup. The truck is driven downwind of a pipeline and the air is sampled continuously for hydrocarbons through a calibrated collection apparatus. “It’s an amazing tool for integrity management. Companies are using this as a maintenance tool. We conduct regular surveys as part of their due diligence,” said Wolski. “It’s the only real way they can know if their pipeline systems are intact without having to shut everything down and do a pressure test. “The cost of doing that is much more than using us, and we can find much smaller leaks using our system than doing a pressure test. ɸ Page B6

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PIPELINE NEWS May 2010

Most leaks have no visual indicators ɺ Page B5 “Also 90 per cent of leaks have no visual indicators. The old way was vegetation surveying, but it can take an enormous amount of methane before you detect damage.” Wolski noted it can cost between $60 to $100 per kilometre to conduct an over-the-line survey on foot or using an ATV, making it prohibitively expensive to do an entire pipeline system on a consistent basis. Woloski also noted the SuprSnifr method of detecting pipelines is a lot safer that an over-the-line survey, as it can be done from a truck one mile from the source. “We are as safe as any motorist driving down the road. We know before we go into the leak that’s it’s already there, and we know where it is and how big it is,” he said. “It’s way safer especially on the sour gas systems. With H2S, you have to worry about the person who is doing the surveying collapsing in the field. “In most cases, they require two people plus a backup and self-contained breathing apparatus so they can go in safely and look for leaks.” When a leak is located using the SuprSnifr, the

client or producer is notified that they have a leak or a suspected leak. “They can shut it down and bring in sweet gas if it’s possible and we can pinpoint it that way or they can just go look for evidence on the surface,” said Wolski. “We can pinpoint it on the ground with a stake. That’s the starting point for repair.” The downside of the SuprSnifr is that readings are not as effective or accurate in temperatures above 15 Celsius, but Gas Trak schedules most of its surveys between fall and spring or at nighttime. Other gas leak detection technologies on the market include passive infrared multi-spectral scanning, laser-based differential absorption, hyperspectral imaging and tunable diode laser absorption. Wolski reports the SuprSnifr boasts a detection success rate close to 100 per cent in year-over-year comparisons with ATV surveys on a large gathering system with good visible trench lines. Gas Trak grew 40 per cent a year for five years starting in 2004 to meet the demand, but business has slowed recently with the drop in natural gas prices and regulations in Alberta that mandate the need for a visual inspection.

“It’s the legislation, the way it’s written, that hinders our progress because they (Alberta Energy and Utilities Board) have made a visual inspection mandatory, and ours is not a visual survey even though our system is much better at detecting leaks than any visual survey could be,” said Wolski. “We are being sidelined by a regulation. “Because these companies are required to do that at much more expense, they are not going to add a duplicate service or do leak detection our way, even though they know it’s not effective to do the right of way inspections.” On the bright side, Wolski says the demand for pipeline leak detection is not just about due diligence anymore for pipeline operators and producers. “It’s about looking after environmental concerns,” he said. “They are looking for a solution, and up until recently, we have not been big enough to provide a solution blanket to the industry. We can only accommodate so much. “That’s why we joined forces with Pro-Line Locators, First Alert Locating and Line Hunters Locating so we are covering the province. Within a year, we will be able to offer this to everyone.”


PIPELINE NEWS May 2010

B7

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PIPELINE NEWS May 2010

Rev Energy expands its oilÂżeld construction footprint Kerrobert – Having blue chip companies such as Nexen Canada, Penn West Petroleum, Enbridge Inc. and Plains Marketing Canada in their backyard motivates Rev Energy Services Ltd. in Kerrobert to beef up their pipeline construction and oil maintenance services to stay competitive. Rev Energy, owned by Brian Burgardt, is currently constructing a bigger shop in the new Burt Sample Industrial Park at the south end of town. The new 300 by 110 ft. building will house new pickers and trackhoes along with existing maintenance trucks, sandblasting and coating units, Bobcats, and a loader, and will include a fabrication/ welding shop. “We have been working with Penn West in the Coleville and Hoosier area for 15 years, and we have taken on a number of their tasks,â€? said Frank Beausoleil, Rev’s area supervisor who spoke in Burgardt’s absence. “We have set up for batteries, single well completions and pipelining, and are expanding into the construction side of the oilďŹ eld because we felt there was a need for it in this area. “That’s why we are expanding into the new shop. We’ve got three brand new trackhoes and some new pickers ranging from three tonne to 20 tonne.

helps us big time, when we go out there and they need equipment. “With our equipment, the key there we feel is [that] we have all new equipment. “The number one thing we stress is that we have operators with three to four years of hot line (pipelines with uid) experience. That is key. “A lot of companies have trouble keeping operators. If I promise you a hot line crew – if we’re digging around the hot line of one of Enbridge’s large pipes – we have the most qualiďŹ ed and certiFrank Beausoleil reports Rev Energy now has six pickers in its Ă eet, including this 4-ton beast used ďŹ ed persons to go out on for oilĂ€eld construction. Photo by Geoff Lee that site.â€? Rev Energy has “Right now, we are to excavate sections of a heat it up for an X-ray. “We don’t want to about 14 employees and doing a lot of “integrityâ€? pipeline and remove the If the client has to, they have to drive out to Swift three or four crews that digs for Enbridge, and protective coatings for will hang a sleeve (weld- Current or Hardisty. We also do oilďŹ eld mainwe are hoping to expand an inspection of the area ed section) over top, and want to look after our tenance, completions, that to Plains Marketing with magnetic particle we will come back and number one customers well tie-ins and pipeďŹ tand other companies that testing to locate and as- sandblast again, and right here. ting for a growing list of need that type of work.â€? sess the SCC area. Re- paint it, and coat it.â€? “All of our guys have clients including Penn An integrity dig in- pairs then follow. Rev Energy can also to have their tickets be- West, Nexen, Baytex, volves a variety of servic“We have been do- respond to year-round fore they can go on site, BP Canada and Inter es from stripping, dig- ing corrosion and SCC emergency digs and ac- and they are working ac- Pipeline. ging, sandblasting, pipe digs for Enbridge for 17 tively markets its safety cording to required safeBeausoleil hopes to checking, repairing pipe years,â€? said Beausoleil, credentials with its Cer- ty codes and company do more business in the (sleeving), coating, back who noted the compa- tiďŹ cate of Recognition regulations. “ future with Plains MarďŹ lling and reclamation. ny has been around for (COR), IRP-16 basic Rev Energy also keting that recently built Rev Energy also handles nearly 20 years. safety awareness training boasts quality control or a new shop in Kerrobert all kinds of gravel prod“We basically set up and registration with IS- QC pipeďŹ tting and QC after moving some of ucts. for Enbridge, but now Networld. welding capabilities and their operations from While pigging tech- we are equipped to han“When you have employs a safety coordi- Lloydminster. niques are being devel- dle any other customer.â€? companies like Nexen nator and a licensed gas “Plains is putting in oped to locate and size Rev Energy works and Penn West, En- ďŹ tter on sta. a pipeline up by Slave what’s called Stress Cor- in tandem on integrity bridge and Plains – they “Diversity gives Lake and we will be bidrosion Cracking (SCC) digs with KB Sandblast- are all in your backyard us a lot of strength,â€? ding on that,â€? said Beauin pipelines, the indus- ing and Coating Inc., co- – they are the custom- said Beausoleil. “With soleil. “The way we are try still relies heavily on owned by Burgarht and ers we want to look after Petrobank out there, for set up for construction, manual inspection of the Scott Kissick. 110 per cent,â€? said Beau- example, we can also do we can go to the Manipipe at various locations “We blast for cor- soleil. steam ďŹ tting, so if they toba border or northern to identify cracking. rosion or cracks or just “With our oilďŹ eld require some mainte- Alberta or wherever. In the Kerrobert to maintain pipe,â€? said maintenance work, we nance work, we have the “I have meetings area, Rev Energy is called Brenden Wilson, who like to stay within driv- people on sta that can with their people and upon often by Enbridge operates a sandblasting ing distance of Kerrobert. do that too. hopefully, we will have unit on pipelines. We do a lot in the Luse“A lot of companies a good relationship with “We will sandblast it land, Coleville, Dodsland nowadays like to make Plains to get things esto remove coatings and and Plenty area. a one-shop stop, so it tablished.â€?

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PIPELINE NEWS May 2010

B9

Wild Stream budgets $60-65 million Exploration and development budget increased Calgary - A reďŹ nanced and oil-weighted Wild Stream Exploration Inc. announced plans for an active drilling program this year. Based on several acquisitions in the ďŹ rst quarter and better-than-budgeted drilling results, Wild Stream set its 2010 exploration and development capital budget to $60-65 million with increased drilling expected in all core areas. Wild Stream is the former Eagle Rock Exploration Ltd., which was recapitalized, renamed Wild Stream and given new management and directors. The company achieved a 100 per cent success rate on the ďŹ rst quarter drilling program in which 11 gross (9.4 net) crude oil wells were drilled. In the Shaunavon Area, Wild Stream drilled four gross (3.2 net) Lower Shaunavon horizontal wells. Two gross (1.9 net) have been on production for multiple weeks with rates in excess of 100 bbls/d of oil from each well. Two gross (1.3 net) wells are in various stages of completion. The company drilled one gross (0.93 net) Upper Shaunavon horizontal well. The well is currently producing at rates exceeding 125 bbls/d of oil signiďŹ cantly above initial expectations. Wild Stream implemented the ďŹ rst phase of their waterood in the Upper Shaunavon formation which is expected to see positive results by the fourth quarter of 2010. The company also acquired 10,300 net acres of exploration acreage in the Upper and Lower Shaunavon fairway. Around Dodsland, Wild Stream drilled three gross (3.0 net) Viking horizontal wells. All wells have been placed on production with average initial

production rates exceeding 50 bbls/d of oil per well. They have also acquired an additional 1,920 net acres of highly prospective Viking lands in the Dodsland area. In Garrington area of Alberta, the company drilled one gross (1.0 net) Cardium horizontal well. It is producing at a restricted rate exceeding 200 bbls/d of oil. They also drilled one gross (0.75 net) Viking horizontal well. It was operationally successful, however the well is producing at lower than expected rates, according to a company release. A follow up Viking horizontal evaluation well will be drilled in the third quarter. Based on its revised capital budget, Wild Stream now expects to drill 16 (14.4 net) horizontal wells in the Shaunavon area, 12 (12 net) horizontals in the Dodsland area, six (5.2 net) horizontals in the Garrington area and two (1.5 net) wells at unspeciďŹ ed locations.

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B10

PIPELINE NEWS May 2010

Kerrobert body shop primed for vehicle mishaps Kerrobert – Rock chips, wildlife collisions and other fender benders send a lot of personal and corporate oil patch vehicles to Kerrobert

Paint and Body Ltd. or KPB. From now on, all paint jobs or touch ups at KPB will be made with water-based paint

that can turn any vehicle into a looker. KPB completed a $300,000 switchover of its solvent-based paint system to water based in

early April, and business owner Richard Anderson is excited with the initial results. “It’s the best paint I’ve ever seen as long as

Company owner and former Kerrobert mayor, Richard Anderson has completed a $300,000 switchover to water-based paint at his paint and body shop.

I have been in the industry, and I’ve seen pretty much every brand that’s been used since day one,” he said. “Water-based is more durable; the clear coats don’t sun fade, and it’s more environmentally friendly. That’s the main reason for this.” The switchover is in keeping with new Environment Canada regulations that require collision repair facilities to use only low volatile organic compound (VOC) undercoats, clear coats and surface preparation products by June 18, 2010. Environment Canada’s regulations prohibit the sale and import of non-compliant products. The new law prompted Anderson to upgrade his air movement systems, temperature and humidity controls, and invest in new

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peripheral equipment and training in order to be compliant. “This is the biggest switchover we’ve had,” said Anderson, who started the company in 1974. “We built a new addition on the back and put in a new state-ofthe-art paint booth, getting ready for this water based paint. We are pretty excited about it.” Anderson has yet to formally broadcast the new improvements to the community, but when he does, oilpatch workers will be one of his target audiences. “The oilfield brings us all kinds of work. The employees bring their vehicles in, of course, and the oil companies bring us all kinds of work. They are a large presence in our area so they have a lot of vehicles,” he said. “They come in for various mishaps. Deer hits are the most common ones we see. We do a lot of their suspension and front end needs as well.” As a collision repair shop, KPB performs wheel alignments and repairs suspensions, brakes, and air conditioning systems along with complete auto body repairs and glass installations. The only thing they don’t do is work on motors or transmissions. “Our main business is the collision industry,” said Anderson, who says the new paint system supports KPB’s niche as a quick turnaround shop. “We are able to get the vehicles in right away and done right away and keep our customers on the road,” he said. “So many people in the oilfield use their vehicle for work. They can’t do without it. Our goal is to get the vehicle fixed properly and back on the road real quick.” Anderson sent three of his employees to Vancouver for a week of training on the water based system while another employee logged six weeks of training at SIAST in Saskatoon. “My staff is very experienced,” said Anderson during the week of the changeover. ɸ Page B11


PIPELINE NEWS May 2010

B11

Matt Davis applies water-based paint to a vehicle part inside KPB’s pressurized paint booth. Davis was once a Canadian Idol contestant. Photo by Geoff Lee

Busy body shop ɺ Page B10 “Some of the men have been painting for 20 to 30 years already. It was just a matter of going to school and learning any techniques that go with water-based. It’s fairly similar to spray on as the previous paints. “We’ve all been fully trained, and the DuPont rep is here for a week to help with the changeover. We feel really comfortable with it already.” Ditto the endorsement from 30 year veteran painter Rick McNicol, who thinks the new water-based paint will be more abrasive resistant to rock chips while driving on gravel roads in the oilpatch. “The water-based paint is far superior to anything I have ever worked with,” he said. “It’s a stronger base, and it should retain its integrity out here especially because of the

gravel that we get.” The timing of the switchover is expected to work in Anderson’s favour as everyone in town is expecting more oilfield activity and road traffic this summer. As a former mayor of Kerrobert, Anderson says any kind of new infrastructure project, pipeline or drilling program is good for business. The last mini-boom stretched from the fall of 2008 through 2009 with various phases of the construction of the interprovincial Alberta Clipper pipeline built by Enbridge Pipeline Inc. “With pipelines, you get the transient workers and they’re good for business” said Anderson. “It’s good for the restaurants and the hotels, but we also have the permanent employees who live here. “They tend to be good citizens involved

in the community. It really helps out the town to have a good oilfield presence. “It’s good for the economy, and good for all our businesses. We are taxed to the limit sometimes, but we appreciate the opportunity to be that busy.” Over the years, Anderson has seen his business grow from two employees to 11 employees along with the pace of the oil and gas economy. “I am positively surprised by the growth of the industry,” he said. “It’s good to see. It’s been a real boom for our community. “We also seem to have more wildlife collisions in the area and we have our fair share of fender benders as well.”

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B12

PIPELINE NEWS May 2010

Pure Energy was the championship rink for the Estevan OTS bonspiel, Mar. 25-28. They beat out the Fusion team. From left are lead Jim Blanke, second Michael Bunz, third Aaron Lamontagne, and skip Duane Lamontagne.

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“He didn’t have much to shoot at the whole game. My guys were all shooting good,” said Duane Lamontagne, the victorious skip. His team was made up of lead Jim Blanke, second Michael Bunz and third Aaron Lamontagne. “My style of game is to have a lot of rocks in play,” Duane Lamontagne said.

“We stole one in the third, two in the fourth, and two in the fifth,” he explained. Lamontagne said there were lots of good teams at this year’s OTS Bonspiel, and that the ice conditions were excellent. The B-Event final lasted the longest of the last draw, with Estevan Meter coming out victorious over Syntech.

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They played shorthanded much of the tournament, including the last game. Skip Curt Johnson said, “We kept drawing to the button. “They tried to take us out, then we drew. We hit his back onto theirs, and spilled out two red to keep the yellows,” he explained of the last shot. The final score was 9-7. The C-Event went to Jerry Mainil who beat out Weatherford ALS 7-4. “It started out with a steal of one, then we gave up three. Then we took our own three to get back in the game, and we stole from there,” explained skip Michael Mainil Epping Energy took the D-2 event, winning 6-3. Brent Gedak Welding was victorious in the D-1 event. Skip Brent Gedak said, “We got a four-ender in the fifth end. X-site lost a player who had to leave.” The game wrapped up in five ends. The bonspiel featured 54 times, down from 64, according to OTS president Jeff Mosley. At the time of the tournament, he said people are still really busy. It’s typical for the OTS to make a charitable donation from the event. Mosley noted that the OTS had paid off its commitment to the new Estevan arena several years ahead of schedule. “We’ve got some ideas, we haven’t made any final decisions yet,” he said. The bonspiel had curlers from all over Western Canada, and features breakfasts on the Friday and Saturday. The banquet took place on Friday, Mar. 26. One company came forward this year to provide shuttle service all weekend. “All indications are we’re in for a busy year in the oilpatch,” he concluded.


PIPELINE NEWS May 2010

B13

The B-Event winners played shorthanded most of the tournament. They were, from left, third Seteven Chernenuk, skip Curt Johnson, and second Duane Martin. Missing is Chris Roche, who helped out.

C-Event winners Jerry Mainil were, from left, lead Calvin Tracey, second Bruce Miller, third Jeremy Maurer, and skip Michael Mainil.

TS&M skip Arnold Marcotte throws a rock in the D-2 event Ànal at the Estevan OTS Oilmen’s Bonspiel.

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B14

PIPELINE NEWS May 2010

Kingsland Energy Corp. in launch phase Regina – The boardroom table is covered with geological surveys, and the laptop on it has similar information on its screen. Two men, a banker and a geologist, have been pouring over it, preparing for the next Crown land sale. Welcome to the birthplace of a new wildcat exploration firm. Perhaps birthplace is a bit of a misnomer, as the company fired up six months before, and started buying land four months ago. The startup, Kingsland Energy Corp., is focused on finding and developing new oil resources, and is still in its infancy. Mark Kilback and his partners are heading up the effort, which is based at the office of their core business interest, Kingsland Capital. It’s a Regina-based, energy industry merchant bank, with its office at the Innovation Place research park, on the University of Regina campus. “Our team is excited to pursue large Saskatchewan oil resources,” Kilback says over a coffee in the atrium of The Terrace office building. “We’ve identified some exciting exploration projects and have begun to secure strong land positions. “We will leverage innovation and

technology to assist in developing these assets. This industry is very competitive. New exploration technology and the skills and the global experience of our engineering team are strong differentiators for us. The experienced engineering team has previously successfully developed resources in Western Canada as well as several projects overseas, primarily in Iran and China,”Kilback says.

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“We are also very fortunate to be working with some of the top geologists in the province; I’m excited how our team has come together.” Kilback offers some clues as to what they’re after. “We’re not only in the heart of the Bakken,” he explains, as they have land interests all through Saskatchewan. In addition to the Midale, Bakken, or the Torquay (also known as the Three Forks-Sanish) zones, they are also looking deep – very deep. They have the engineering capabilities of looking right above the ‘basement,’ in the rocks formed during the Ordovician period. The ‘basement’ is the bedrock below the sedimentary rock in which petroleum reserves form. The company’s engineers have worked with deep formations overseas, where it’s not uncommon to drill deep, so they have no apprehension to do the same here.“There are a lot of deep drilling prospects in the province. The challenge will be in developing the reservoir.” “We’re really trying to stay off the beaten path, to use our experience, technologies and knowledge.” “The time is right. I’m a believer in ‘peak oil.’ I think we’re on the other side of that trade,” Kilback says, adding there is some euphoria back in the energy capital markets. He refers to the launch of new financial products enabling investors to trade oil and gas commodities in a sophisticated way. “I’m a believer in long term higher oil prices, absolutely.” Kilback says, “We’re wildcatting. We’re going to areas where there’s going to be the next big play and significant opportunity. We’ve acquired strong initial land positions, and we’ll be looking at additional freehold and Crown land opportunities in the upcoming months.” As for putting holes in the ground, Kilback says that’s a year down the road. “We’re going to target next summer (2011), right after breakup.” The initial drilling activity would primarily be vertical exploratory wells for core analysis. Asked how many wells they are looking at, Kilback laughs. “We’re focused on securing the resource, and drilling the exploratory wells as required. Our team is working hard to fully understand the resource before we develop a comprehensive drill program.” Pipeline News will be following the progress of Kingsland Energy Corp in the coming months as it goes through the early stages development for a junior oil producer.

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PIPELINE NEWS May 2010

B15

Williston Basin Petroleum Conference to set record Bismarck, ND – In March, Ron Ness, president of the North Dakota Petroleum Council, predicted there would be 1,500 to 2,000 registered participants attending this year’s Williston Basin Petroleum Conference. By April 20, that number was already confirmed at over 1,900. The Williston Basin Petroleum Conference will take place in Bismarck, North Dakota, May 2-4. The conference is titled, “Bakken and Beyond!” The conference alternates between Saskatchewan and North Dakota each year, with the governments of each jurisdiction playing a part. The Williston Basin encompasses southeast Saskatchewan, southwest Manitoba, northeast Montana and much of western North Dakota. The booths sold out months ago, and now the core workshops are full, too. There will be 300 exhibition booths, double what they had in 2008. There are also 25 outside exhibitors. If you want a hotel room, you’re going to have to look in the surrounding area, according to conference organizers. They are still taking registrations, and do not have an upper limit.

In previous years, the conference usually has featured numerous speakers all addressing one large group. However, with its sheer size this year, only the keynotes will be speaking to one large group. The rest of the sessions will be in smaller groups in a breakout format. There will be as many as three different sessions to choose from at a particular time. There are over 70 speakers lined up. North Dakota Governor John Hoven is one

of the keynote speakers. Saskatchewan Minister of Energy and Resources Bill Boyd is also confirmed to speak Other keynote speakers of interest include Clarence Cazalot, president and CEO of Marathon Oil Corp., James Volker, president and CEO of Whiting Petroleum Corp. On the web: www.ndoil.org

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PIPELINE NEWS May 2010

PhD returns to Saskatoon, By Brian Zinchuk Saskatoon – After spending several years in the crucible of cellular phone development, and having just completed a PhD in electrical engineering, Darryl Jessie wanted a simpler life for his family. Five years down the road, his company, Saskatoon-based Raum Energy, is now making small wind turbines that are meant not only to provide green energy, but are also economically feasible. A professional engineer, Jessie is the president and CEO of Raum, as well as one of the major shareholders. The Saskatchewan Entrepreneurs Fund is another major shareholder, along with 10 other smaller investors. Raum is originally from Estevan. He lived in

When I came back, it was a solution looking for a problem.

Prince Albert for a while, then Estevan again before attending the University of Saskatchewan’s College of Engineering. He completed his degree in engineering physics in 1993, a program at the time considered one of the hardest in the college. In 1995 he completed his engineering physics masters degree, and spent some time working on the linear accelerator atom smasher that would form the foundation of

- Darryl Jessie, PHD

the current synchrotron. It was tough getting a job in engineering in the mid-90s, however. In the summer of 1995, he put out 376 resumes, and got only eight interviews. In 1996 he would end up in San Diego, along with his wife, Julie, who now works in admin with Raum. There he would work on CDMA cellular technology with Qualcomm. Pulling a cellular phone out of his pocket, he said, “Some of my designs are in this phone.” His group worked on four or five chips that other companies like Motorola, Siemens or Samsung would buy, and then build a chipset around. It was a rough year in 2004. Jessie’s father died in February, and by that time, he “had enough of the California life.” Besides, he loved hockey (which he now coaches), and pointed out you can get across Saskatoon in 15 minutes. So Jessie, Julie, and their three American-born children, now 10, 8 and 6, came back to Saskatoon. “When I came back, it was a solution looking for a problem,” he said. They had bought some land north of Saskatoon a few years earlier, and he wanted to put up a wind turbine for electrical generation. The idea wasn’t to live off the grid, but rather to supplement grid power. At the time, he found no Canadian suppliers, and three U.S. suppliers had about 80 per cent of the market for small wind turbines. A 10-kilowatt installation was going to run around $70,000. ɸ Page B17

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designs wind turbines ɺ Page B16 The number of manufactures has grown to around a hundred globally, he explained. (“Big wind” is considered the large wind turbines, usually arranged in wind farms that are seen in places like Swift Current. They and will often generate 1.5 megawatts of power for power utilities. “Small wind” is generally small installations, usually just one wind turbine, generating a small fraction of the power of a massive turbine. Small wind is typical for places like farms.) “At the time it was hard to get anything,” he said, and in the credo of most new entrepreneurs, Jessie thought he

could do better. Most of 2005 he worked on his own, developing the wind turbine generator. “My background is in electromagnetics. “We incorporated in February, 2006.” In Saskatchewan, it was quite burdensome to connect a wind turbine to the provincial grid. “The policies to connect to the grid were very bureaucratic,” he said. That wasn’t the case in other jurisdictions, like California, however. The big change provincially came when ‘net metering’ was introduced here in October, 2007. ɸ Page B18

Day

Construction Ltd. Lease Construction Lease Restoration • Mulching Darryl Jessie looks down a plastic wind turbine blade, used by Raum Energy for its Àve-bladed turbines. Jessie, with a PhD in engineering, has worked as an adjunct professor at the University of Saskatchewan, which turned out to be a good way to recruit promising engineers.

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PIPELINE NEWS May 2010

A turbine for every farm ɺ Page B17 Net metering allows a small power generator, like a wind turbine or solar set up, to sell excess power into the util-

ity grid. If during part of the day the turbine creates more power than is consumed by the client, then the excess power is sent into the grid, and

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the power meter essentially runs backwards. When the generator isn’t meeting the client’s demand, such as when the wind dies down, power is drawn off the grid like usual. At the end of the month, the power bill is assessed on how much net power is consumed. “That made it much easier for us,” he said. Some jurisdictions, like Ontario, even pay a premium for greenpower generated and sold into the grid through net metering. For wind power, they pay 13 cents a kilowatt hour, and 80 cents per kilowatt hour for solar. To draw power off the grid is approximately 10 cents per kilowatt hour. That means in Ontario, every kilowatthour of wind power you generate on your own is worth roughly a third more than the power you buy from the utility. Saskatchewan does not have that incentive, however, simply buy-

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This is the old school design of windmills. Raum Energy of Saskatoon would like to see modern windmills once again become a feature on every farm.

ing and selling at the same rate. And while Jessie pointed out there is no federal program in support of small wind generation, there is a substantial grant in Saskatchewan subsidizing small wind installations. Support for green energy doesn’t have to be complicated, he added. A simple tax break will do. Manufacturing Most of their manufacturing is done in Saskatchewan. The make two models, with 1.5 and 3.5 kilowatt outputs. There are a few key parts to a wind turbine set up. First, you need a pole to put it on, which can be lattice or a monopole, similar to a light pole. Then there is the generator itself, which rotates 360 degrees at the top of the pole. The generator has a permanent magnet, is brushless, with a gearless, direct drive. That’s another way of saying ‘low maintenance,’ because there are only two moving parts. Next are the blades, which in this case, are

made of plastic, not fibreglass. Most wind turbines you see, big or small, have three blades. Yet the two Raum models have five. That’s because it was easier for them to create the moulds for five thinner blades than the thicker blades a more conventional three-blade turbine has. “It’s easier to manufacturer thinner blades with our technology,” he said. The company has a CNC machine in the shop which is used to create moulds for the blades, along with other uses. It turned out the CNC machine was a little over half the price of sub-contracting out a mould. Plastic also has the benefit of being low cost, once the mould is made. Their blades are fibrereinforced. Finally, there is the connection to the grid. You can’t just hook up the wind turbine and go. The power it produces is not ‘clean,’ in that in a ‘wild wind’ turbine like the Raum models, the frequency of power generated varies with the wind speed. The inverter cleans up the output, making it 240 volts, and 60 hertz. Their inverters

can also be used in solar applications, an area the company will be pursing this year. Raum now has 19 staff. They were at seven for two years, then jumped to 15, and now are hiring a few more, in anticipation of the summer and fall big push. About half of their sales are Canadian, with the rest coming from the U.S., and a few overseas sales. Of the Canadian sales, about half of those, or a quarter overall, are in Saskatchewan. “It’s got to make sense financially,” Jessie explained, with low capital costs, efficiency, and simplicity. According to Jessie, 3.5 kilowatt Raum unit should pay for itself in about seven years in Saskatchewan, factoring in the grant, or in ten to 12 years without a grant, depending on how strong the wind blows in that area. The smaller 1.5 kilowatt until has a longer payout. Just as it used to be said, “A computer in every house,” Jessie noted, “We want a wind turbine on every farm.” “I see no reason why the majority of those couldn’t have a wind turbine on them.”

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The generators for Raum Energy wind turbines are an example of simplicity: the generator has a permanent magnet, and is brushless with a gearless, direct drive. There are only two moving parts.


PIPELINE NEWS May 2010

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On the right track The Soo Line running through Weyburn and Estevan has frequent trains carrying Evraz pipeline pipe, produced in Regina, heading down to the United States. Photo by Brian Zinchuk

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PIPELINE NEWS May 2010

If it’s broke, you can ¿x it at Huber Machining Unity – It's a cliché, but every day is a new beginning, work wise at least, for Grant Huber, owner of Huber Machining Ltd. in Unity. Huber Machining makes and repairs parts for agricultural and oil and gas companies and individuals in the Unity area. That could mean anything from fixing drivelines and hydraulic cylinders to rebuilding parts for combines and balers. “Every day there’s a challenge,” said Huber, who runs the shop on his

own. “There is something new that walks in the door every day almost. You have to scratch your head and figure how to repair it or make a new one up for them. “I enjoy the satisfaction once you get it done. Sometimes it’s frustrating getting to that point. Once it’s done, it’s pretty satisfying.” His main tools of the trade are a couple of engine lathes, drill presses, a milling machine, a 50-ton hydraulic press, a small brake, welders, and a plasma

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cutter. “I am a machinist by trade, and I picked welding up as I have been going along. This is my 22nd year,” he said. “My work is half agriculture and half oil and gas.” The North West Terminal, and the new North West Bio Energy Ltd. ethanol plant and Viterra provide Huber with a lot of his corporate agricultural related machining work. For the ethanol plant, he said, “I work on their pump shafts or stuff that their welders can’t do – machining. It generated a lot of work for me when it was being constructed, but now it’s backed off a little bit.” He also fixes pick up rollers for combines, and repairs a lot of baler rollers for local farmers during the fall harvest, along with repairing hydraulic cylinders on farm equipment. On the oil and gas front, Huber says most of his work is equip-

Grant Huber volunteered his time and skills to build these steel dugout frames for local minor softball. Photo by Geoff Lee

ment repairs for local companies. “The odd time it’s drive shafts that get damaged going down a bad road or over a pasture and hitting a rock,” he said. “Also I do a lot of stuff for service rigs and a bit of work for surveyors. Sometime, they are bouncing around all over, so I will weld in their tool boxes and fix things. “My February and March were really good so we are hoping for a busier year. Last year was

quiet. There’s a bunch of oilfield activity to the west. “Most of my business is local – crews from around town. We repair stuff for them. If a new crew comes to town, they usually find me pretty quick.” The raw materials for Huber Machining include a wide variety of steel shafts from 3/16 to 4-inch diameter in different shapes including square and hexagon. There is also a supply of square tubing, angle iron,

black pipe, flat iron and channel iron. When Huber added a new addition to his machine shop in 2000, he installed a set of overhead cranes to handle most of the heavy lifting. “Lots of time you have to lift iron and lots of times you might have to replace a truck hoist, so that crane can lift the box off the truck,” explained Huber. “At times it can be a physically demanding job.” ɸ Page B21

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PIPELINE NEWS May 2010

B21

Above: Huber Machining carries a wide variety of iron stock. Right: The eye of the sprocket is the focal point of this photograph.

Every day is different ɺ Page B20 A forklift truck also comes in handy to move around his inventory of metal sprockets, bearings, seals, hubs and hydraulic cylinder shafts including chrome shafting for hydraulic cylinders. Outside, Huber stores a weighty supply of square and rectangular iron, angle iron and grip struts and bar grating for customers. He also sells iron to people who want to build their own stuff. Huber says no matter what the job is, the creative process for building a new part or repairing something starts with a bit of detective work. “First of all you have to determine from the customer how it broke or how it failed if, and it was from normal use or abuse, and then you have to go from there to make it stronger or improve it in any way,” he said. “Sometimes the client will have a drawing to make something new. If it’s parts all in pieces, then you have to put it together and make drawings of it. “I make a lot of

‘one-ofs.’ If you making 10, you can make it a lot cheaper than one, but making something is usually cheaper than buying a new one.” Huber says the reason a lot of oilfield customers comes to him is because they can’t find the part they need or it would take too long to order. “In the oilfield, the sooner you can get them going, the better they are. There is less downtime,” he said. When he is not busy himself, Huber likes to curl and volunteer his time to help organize the annual Unity Oilperson’s Bonspiel. “Someone has to do it,” he said. “It’s fun once you get going. Everyone has a lot of fun.” The day Pipeline News dropped by, Huber had a set of metal baseball dugouts he volunteered to build ready for delivery. The community project is in keeping with his “variety is the spice of life” approach to machining. Asked what he had on his plate that very day,

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PIPELINE NEWS May 2010

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PIPELINE NEWS May 2010

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PIPELINE NEWS May 2010

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PIPELINE NEWS Saskatchewan’s Petroleum Monthly

C-Section May 2010

Rentals key to heavy equipment sales By Brian Zinchuk

Tim Kramer, president and CEO of Kramer Ltd., said, “I told the chairman of Caterpillar the reason we weren’t going to participate in the ‘recession’ was because it was too hard to spell.” Photo by Brian Zinchuk

Regina – Every few years, a major pipeline gets built across Saskatchewan. The majority of contractors who work on those projects use mainly Caterpillar equipment to get the job done. As such, this equipment plays a major role in the business plan of Kramer Ltd., Saskatchewan’s Caterpillar dealer, in ways that one might find surprising. That’s because, according to Tim Kramer, president and CEO of the family-owned and operated firm, not a lot of brand new equipment is purchased by Saskatchewan clients. Their preference is for slightly used equipment. So when a massive project comes in, like the Enbridge Alberta Clipper, which ran over 2008 and 2009, it’s a chance to bring in large amounts of iron, put a few hours on them, knock down the price, and then sell them to Saskatchewan customers down the road. The oilpatch makes up in excess of 10 per cent of Kramer Ltd.’s business. At first, it might seem like this percentage should be higher, until one realizes that Caterpillar’s equipment product line consists of more than 300 machines, including above and below ground mining equipment, generators, and highway truck motors to name a few. “We segment our market into different divisions. In fact, we recently looked at segmenting the oilpatch as a market of its own,” Kramer said. What do oilpatch customers require in terms of equipment? “The mainstay is dozer power – track type tractors,” he responded. Pipelayers, motor graders, excavators and integrated tool carriers (a variation of the wheel loader) are also in demand. Kramer’s customers are a great mix of really large players to the small contractors, everyone from Carson Energy Services Ltd. in Lampman to the people with one D7 and a small tractor. “It’s a real challenge for us, because there are so many calls. We’re getting to the point where there’s ‘patch speak,’” said Kramer, pointing out the lingo is different in Lloydminster than other areas. In recent years Kramer Ltd. has established branches in Kindersley and North Battleford. Both were set up as agricultural facilities, and within hours of opening, they were handling heavy construction and industrial clients. “We’ve outgrown that facility already,” Kramer said of their North Battleford location. For that branch, about 40 per cent of Kramer’s business is agriculture, 50 per cent is heavy construction while the remaining 10 per cent is oilfield, but that 10 per cent is growing. ɸ Page C2

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C2

PIPELINE NEWS May 2010

Big pipelines furnish equipment for Sask clients ɸ Page C1 Kramer is optimistic that rising oil prices will drive demand for Saskatchewan’s oilsands. Last year heavy construction sales were down, but repairs were up. It was a nice breather, after a hectic 2008. “What we lost in heavy equipment, we picked up in agriculture,” he noted. “Now, things are firing on all cylinders,” he said, adding, “It’s unusual. Typically in Saskatchewan, something is always going up or down.” Pipelines key to sales One of Kramer’s major clients is Waschuk Pipe Line Construction Ltd., based in Red Deer. They built the eastern Saskatchewan portion of the Enbridge Alberta Clipper pipeline over the last two years. Kramer points out that they are the only remaining family-run, large-scale pipeline contractor in Canada. He said they are tough as nails, but unique. Kramer Ltd. has a close relationship with Waschuk. “Customer relationships are important. It’s our job to make our customers more profitable,” says Kramer. A big pipeline project requires plenty of lead time, and has a big impact on the business. “We’re already ramping up for Mackenzie Valley,” he said, adding there’s also the Keystone XL project in the works for southwest Saskatchewan. “We probably start a year in advance. You sit down with your customers; look at their spread, what you’ve got, what you are going to need. “You’ve got to have a lot of guts. We took the initiative for this last run,” he said, speaking about Alberta Clipper. “We supplied the whole spread.” Each of the major contractors, including Waschuk, Robert B. Sommerville/Techint, Michels Canada, and Bannister, rented much of their iron from Kramer, despite larger Caterpillar dealerships to the east and west. There were lots of D6 and D8 dozers, 345D and 330D excavators, 16M and 14M graders, and even Challenger 85 rubber-tracked farm tractors. Pipelayers, i.e. side-

booms, however, are handled by an internal Caterpillar division, since they are such specialized equipment. All told, there were hundreds of pieces of Caterpillar equipment working on that project. “When the final numbers came in, we were absolutely shocked. It was almost double what we thought it was going to be,” said Kramer. As such, they had to play a balancing act, to make sure everyone had the equipment they needed, when they needed it. Rentals to start Much of this iron went out as rentals, and some of it is now back, in the yard, awaiting sale. The pipeline contractors held on to a little over half. “Being able to offer our customers an affordable piece of used equipment – one that has been well maintained with minimal hours - is important,” Kramer said. Such machines, he added, are “highly coveted.” Indeed, nearly all iron that goes out the gate starts out as a rental. “Almost exclusively, they start with rentals,” Kramer said, noting it was the system of choice for everyone. “The object of our entire pipeline side of the business is to bring value to our Saskatchewan customers,” he said. The vast majority want low-hour, pricereduced equipment. The system works for the pipeline contractors, too, because they need maximum production with minimal downtime. Maximized productivity on the line is so important that crews like the ditch crew will have their own mechanic, on site, at all times. “They cannot afford down time,” Kramer said, which is why they like to use new equipment. Rentals are not the case in mining, however, where the hard conditions usually mean the equipment is bought outright. When Kramer talks about rentals, most of the time that’s a reference to rent-to-own, where a substantial portion of the rental fees go towards the purchase price

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of the equipment, if the contractor decides to buy it out. “It’s a form of off-sheet financing,” Kramer explained. “There is always a risk they won’t buy it.” Asked about the prospects for this year, after a tough 2009, Kramer said, “When things go bad, they go bad very quickly, and it takes a long time for people to once again have confidence in the economy. “In Saskatchewan we were scared because everyone else was scared, not because we had reason to be. I told the chairman of Caterpillar the reason we weren’t going to participate in the ‘recession’ was because it was too hard to spell.” “It has a lot to do with luck, more luck than you know.”

David Kell works on the track press, rebuilding an undercarriage. Behind him, you can see the robotic hydraulic torque wrench, which can remove stripped bolts.

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PIPELINE NEWS May 2010

Keeping it all in-house By Brian Zinchuk Regina – Vertical integration is the name of the service game for Kramer Ltd., Saskatchewan’s Caterpillar dealer. “Send nothing out, keep full control,” says Tim Kramer, president and CEO, as he takes Pipeline News through a tour of their Regina facility and headquarters. “None of the tractor leaves here until it’s complete. We don’t send out rads, turbochargers or hydraulics.” Indeed, when working on competitive machines, they’ll put Cat parts on it, such as hydraulic components, essentially turning them into Cat hydraulics. Based in Regina, Kramer Ltd.’s headquarters are comprised of three on-campus buildings and an agriculture/ energy shop a few blocks down the road. The main building houses the headquarters offices upstairs with the Regina branch downstairs. Within head office, Kramer says, “All our people are companies, little internal companies.” Your tractor called An example is a new GPS division being set up for agriculture and heavy equipment. The automation of equipment is becoming so pronounced, Kramer says, “It’s not far from the tractor calling us, saying, ‘I’m sick.’” “Your tractor called. You need a new turbocharger.” The information technology portion of the dealership is growing. It used to be that service technicians would go to a central computer area to look up and order parts. Now, each workbench has a laptop on it, as much at home as a half-inch ratchet. The whole building is wirelessly connected. The technician makes decisions on whether to go with a used part or a new part, and place the order right from the work bench laptop. “We found many years ago, we couldn’t get quality machining,” Kramer says. So they brought it in- house.They

can now mill blocks and heads to such tolerances that they can be rebuilt three or four times. Cells The machining area is just one of numerous cells in the shop. Another is dedicated to rebuilding hydraulic cylinders. “Everything is set up as a cell. The goal is to maximize wrench turning,” he explains. There are test benches for both engines and transmissions – as big as they come. An en-

gine from a mammoth D11 dozer can be found in this area. The Dynamometer test bench uses water pressure to emulate a load, putting the engine through all its paces before it is reinstalled into a tractor. “This is the cheapest place for an engine to fail. We don’t want it to fail for the customer,” notes Kramer. Nearby is a similar test bench for transmissions. ɸ Page C4 Heavy duty mechanic Ed Beday works on a massive motor.

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Kramer Chairman of the Board Donald E. Kramer & Kramer President & CEO Timothy R. Kramer

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PIPELINE NEWS May 2010

The large yellow piece on the right is the ripper apparatus for a 24H mining grader.

A welder works on the massive hook for a 589 pipelayer. The frame of the machine, on the right, has recently been sand blasted; part of a rebuilding process that will make the machine so much like new, it will be given a new serial number.

Vertical integration a quality control strategy ɺ Page C3 It’s all part of a quality control system that is prevalent at every step. There are several large parts washers in the building. You’ll see plastic caps all over the place, so that there are no exposed holes on items like engines or hydraulics. The engine area has a clean room for working on fuel injection systems. “Dirt is the enemy,” Kramer says ironically, since the function of most of the heavy equipment is moving dirt. If something does give, they do more than just take a look at it with a Mark I eyeball. The failure analysis lab will put failed parts under a microscope, and even send pictures to Caterpillar. Fort Mac service work Throughout the repair shop, one finds several examples of very, very large equipment, the biggest that Caterpillar makes. There’s two 589 pipelayers, and a 24H motor grader. All are from Suncor, and made the trip down to Regina from Fort McMurray to be rebuilt.

“Suncor is a very large customer of ours. They discovered us by pure accident,” Kramer says. Most of their Suncor repair work is done in Regina, but they also spread it throughout the province. In the undercarriage area, you’ll find a robotic hydraulic torque wrench. Instead of men hunched over with impact wrenches, the machine will properly torque an entire set of tracks, and even remove stripped bolts. It saves backs, time, and customers’ money, according to Kramer. The paint booth has an electrostatic paint system, which produces a factory-like finish. The parts department receives a 45-ft. van trailer of parts each day. The daily delivery is broken down by branch, and then shipped out. “As soon as we built the [warehouse] building, it was too small,” Kramer says, so they added a cold storage area. Experienced Parts Other businesses may have used parts, but Kramer Ltd. has “Experienced Parts,” something for which Kramer is known around North America. It’s a separate building, with a warehouse full of items

such as wrecked engines, frames, torque converters and the like. The third building includes a radiator repair facility. Again, it was a case where they weren’t satisfied with sending that work out to other shops, so it was brought in-house 10 years ago. “It’s not high tech, but it’s so strategic,” Kramer says of the water recycling system. They can straighten fins, repair leaks, test and paint radiators. Similarly, an air filtration area was brought into the same building two years ago. The cleaner reverses the air flow, blowing out the accumulated dirt out of the air filter as it is spun on a device similar to a high speed lathe. There’s a special room where filters are baked as part of the cleaning process. Filters are tested before being sold. An air filter can be reused several times now, whereas they used to be simply thrown away. The manager of the air filter cleaning facility is a third generation worker with the company. Both Kevin Rittinger’s father and grandfather were early purchasing agents. Kevin’s father, Ken, is now the asset manager with the firm.


PIPELINE NEWS May 2010

Redvers Oil Showcase May 7-8 Redvers – If you waited to get tickets for the keynote speech of Redvers Oil Showcase by Brett Herman, you’re out of luck. Sponsorship has been so strong for the event, to be held May 7-8, that they’re full up, as gold and silver sponsors are each given a certain allotment of tickets. As of April 20, the showcase was just about filled to its inside capacity of 68 booths, and had 28 outdoor displays. Even so, calls were still coming in. “It’s a continual, every day thing. Within the last hour, I got four calls, and one gold sponsor 15 minutes ago,” said Colette Branigan, Redvers economic development officer. Indeed, they have nearly doubled their sponsorship, compared to the

previous event two years ago. The highlight of the event will be a speech by Brett Herman, one of the top executives responsible for growth in the Bakken play. Herman, president and CEO of Result Energy until it was purchased by PetroBakken in January, and former head of TriStar Oil & Gas, will be the guest speaker at 6 p.m. on May 7. The event will take place at the Redvers Recreation Centre. The trade show opens to the public at noon on, May 7, and is open until 4 p.m., allowing for the evening’s festivities to get underway. On May 8, the morning kicks off with an exhibitor’s breakfast from 7:30 a.m. to 9:30 a.m. The trade show will start at 10 a.m. and

wrap up at 4 p.m. Also on the agenda is a fire extinguisher safety course, to be put on by Safety Source. The Virden, Man.based company has recently opened a Redvers location. Lot give-away One of the highlights of the last Redvers Oil Showcase, held in 2008, was the giving away of a commercial lot in town to one of the exhibitors. Classic Vac of Alida won the draw, and ended up building a shop. The new facility now is home to a new TS&M Supply facility in addition to Classic

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Vac. It was a major coup for the small town, scoring two new businesses. The organizers are hoping to repeat their previous success, offering up another lot along Highway 13. This one will be just west of the new John Deere dealership under construction, and there will be an adjacent lot available for purchase, if the winner decides they would like more space than the 75-ft. by 300-ft. lot. However, if the winner decides to forego the lot, they will have the option of accepting a $2,500 travel voucher.

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PIPELINE NEWS May 2010

Turnbull Excavating celebrates 25 years Estevan – Twentyfive years ago, Ed Turnbull started out with a Bobcat and a dump truck, doing landscaping. From that humble beginning, and through several very tough years, Estevan-based Turnbull Excavating has grown to a fleet of several dozen units and a Redi-Mix

plant. The company celebrated the opening of its new Redi-Mix concrete plant, on March 25, as well as 25 years business. Turnbull’s father used to run the local Imperial Oil bulk fuel operation in Estevan. Ed began working for the family firm after school, and stayed for eight years. However,

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the loss of a key contract in 1986 meant the small company had to downsize. He had been doing landscape work for a year to that point on the side. “There was more opportunity in the construction business than bulk petroleum,” he said “Our hands were pretty much tied for expansion.

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Heather and Ed Turnbull are the owners of Turnbull Redi-Mix and Turnbull Excavating. In addition to running the business, the pair are active in the community. Shortly after this photo was taken, Heather was off to work on the local Relay for Life for the Canadian Cancer Society, of which Turnbull Redi-Mix is a leading sponsor. Ed has spent many years active with the Estevan Motor Speedway.

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keep his job.” With that, Turnbull decided to strike out on his own in 1985. “I’d been doing landscaping when I was working with him. When I left, I started on the construction side,” he recalled. Small contractors were the clientele. Ed was originally partners with his late brother Garry for the first few years, before eventually buying him out. Garry stayed on for seven years after that, but later took a job in the oilpatch. “We got on steady with ASL paving. We did a lot for them, and learned a lot, about base work and compaction,” he added. ɸ Page C7


PIPELINE NEWS May 2010

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"Get in the truck, we're going for a ride" ɺ Page C6 Rough start The first few years were rough – hanging on by the skin of your teeth rough. “Things were so tough in our first year. There was no snow in the first year.” That meant no snow clearing, and no winter revenue. It made for a depressing winter. They desperately needed to do repairs on their equipment, but had no money to do it with. “That was about the only thing we could do – sweep the floor. We didn’t know what spring would be like,” said Turnbull. Spring turned out to be a slow start. “What are we going to do?” Garry asked his brother. The new Turnbull Redi-Mix plant was built Àrst, and then the building was built around it. The challenge was to do the construc“Get in the truck tion while the plant was still in operation. Ed Turnbull got into concrete when digging basements led to a need to supply the with me, we’re going for concrete, as well. a ride,” Ed responded. They drove around from construction site to construction site, offering their services. In a few hours, they had lined up two days of work. “After that, it took off,” he said. “We were at the point where it was go to work or have to borrow money to operate, and there wasn’t a banker around that would lend to us, because we didn’t have any receivables.” “We started with Bobcat and a dump truck. We expanded and bought a second Bobcat and a second dump truck. We needed more capacity on the loading end, and in 1987, we purchased a loader from Case Power and Equipment,” he explained. There was one prob• Tandem, tridem, • Horizontal 80 m3 frac tanks lem. They had no money. quad sour sealed units “Case had a program on new equipment where you could finance your down payment over six months,” noted Turnbull. It was a big purchase for the fledgling company - $54,000, and those initial payments were $2,400 a month. They delivered the loader and the next day, the salesman came along to sign the agreement. How• 16 million & 21 million BTU ever, Turnbull was driving truck for someone else at Super Heaters • New tri axle combo unit the time, and couldn’t get • Propane Fired away from it, so the salesman had to hop in for the Serving Southeast Saskatchewan, ride. “The finance agreement was signed at the Southwest Manitoba & corner of 2nd Street and North Dakota since 1956. 8th Avenue,” he recalled.

ɸ Page C8

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PIPELINE NEWS May 2010

Timing an important role in the beginning ɺ Page C7 The loader was a big help. “At that point, I was able to dig basements, and do bigger jobs. It worked out quite well.” His wife Heather, who co-owns the business and does work behind the scenes, was supportive, he said. “She knew that we

needed it, that we were growing, and we were busier and busier.” To this point, they only had three staff, the two Turnbull brothers, and Terry Schwartz, employee No. 1. “He’s still with us today. He’s an operator/ driver,” said Turnbull. Early projects

“We were fortunate enough to go into business at a time when the Rafferty Dam and Shand Power station were built.” Those two projects, plus riprap work at the Mainprize causeway kept them afloat. The Mainprize work was brutally hard on their

equipment, but it was welcome work. “We loaded rock from a farmer’s field, which was a really tough job. We’d work all week, and braced it up and weld iron into the floor [of the box] on the weekend,” Turnbull said. Those three projects got them on their feet.

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However, over the years, there never seems to have been a time when they were flush. “We’ve never had money in the bank. We’ve been trying to keep up with the times as we expanded. Once in a while, we’d buy a new piece [of equipment],” he said. Turnbull Motor Sports The lack of snow made the winters tough, but in 1989, there was a change. “It actually snowed that winter, and there was no one in the snowmobile repair business,” Ed said. He had four full time employees, including some talented, experienced repair people. They were put to work fixing snow machines. He was offered a Polaris dealership, and initially turned them down, then reconsidered. That led to the birth of Turnbull Motor Sports, which would become an RV dealer. The shop they had at the time is where this newspaper is now printed today. By 1995, he wanted out, but it took five years to sell Turnbull Motor Sports. Backhoe and concrete The next big step on the excavating side was a backhoe. There were several other companies in town doing similar dirt work, and they all had backhoes, giving them the ability to do sewer and water work. Developers wanted the same company to dig basements and install the sewer and waterlines, not just dig the basement. “We were getting into trouble with basements, because we didn’t sell concrete. There was only

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one concrete operation in town,” said Turnbull. That led to the 1990 purchase of a mobile mixer, essentially a small concrete plant on wheels, able to do small batches with minimal wastage. They now have two units like that, and Turnbull feels strongly that they have their place, despite the fact the company now has a complete Redi-Mix plant. “The customers like them,” he said. “They’re very convenient for home owners and remote jobs. You pour what you need, shut it off and go home, only charging for what he uses. They work quite well for small jobs.” Expansion At this stage, they started getting into bigger equipment, adding an excavator. The fleet has since grown to include four excavators, two backhoes, a dozer, a grader, a scraper, eight loaders, eight cement trucks (including two onsite mixers and six drum mixers), five dump trucks, eight semis and trailers, and an assortment of other equipment. Recently they acquired directional boring equipment, the first to be based in Estevan. They are now in their sixth shop, and are planning to move into a new one by this fall, on the east side of Estevan. Turnbull had put together his own crew to assemble the shell of the Redi-Mix plant over the mixing unit while it was still in operation. Now they will go to work on the new shop. The east side of Estevan will work out better for much of their hauling, avoiding having to drive through the downtown with semis. “We’re really on the wrong side of town,” he said of the current west-side location. The Redi-Mix plant will remain where it is, but the current shop will eventually have new tenants. In recent years, the oilpatch has become a growing part of their business. “Mostly sand and gravel, site and lease cleanups,” Turnbull said, adding they also do some contaminated soil hauling. They’ve just about completed their Certificate of Recognition (COR), and have been getting the staff up to speed on safety. “We didn’t start out in the oilfield, but now we’re into it,” he concluded.


PIPELINE NEWS May 2010

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You’ll ¿nd them at the track

All three of the racing Turnbulls can be seen in this picture. In car 21 on the top is Aaron, while right behind him in the centre is Tyson, driving car 10. On the bottom is their father, Ed, in car 10eh. Photo by Brian Zinchuk

Estevan – On the weekends during the summer, it’s a sure bet you’ll find the Turnbull family at Estevan Motor Speedway, driving modified cars on the dirt track. It’s a family affair for the Turnbulls. Ed, the patriarch, started racing in his teens. He did some dirt bike racing until a spill put him in the hospital, then he chose to stick to four wheels. “I got adapted to that at a very young age. I had an older brother that messed around with that for a year. I was attracted to the competition part. It grew on me,” he said. He put together a car with some buddies, and raced at the old speedway, south of Estevan. “Once you get it into your blood, it’s hard to get rid of,” he added. Ed and Heather Turnbull’s sons Tyson and Aaron both race as well. Tyson works with Turnbull Excavating, where he runs pretty much every piece of equipment the company has, and often fills in as a backup. Aaron owns and operates Future Signs, an Estevan sign shop. Aaron is frequently seen on the leader board of the local race track. “We spend the majority of our time together in the evenings and weekends. It’s a good family sport. The kids grew up in it.” All three Turnbulls race in the modified class, with Ed driving the orange No. 10 EH, Aaron

in No. 21, and Tyson in the pink and black No. 10. “When I’m at the track, or even on the way there, it clears your mind of everything,” Ed said. He was one of a number of volunteers who worked on putting together the new motor speedway. The land was donated by the local mine, and they got several firms on board. “I went out there and did most of the design for the track,” he noted. “It was such a group effort, I don’t think it could have happened anywhere else. And it was all donated. Companies came forward.”

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PIPELINE NEWS May 2010

35 years in the business,

Hank Shaw and his brother Scott own and operate Shaw Earth Moving Inc. Scott was unavailable for the photo.

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Gainsborough – Just about everyone in the Shaw family of Gainsborough ended up in some sort of entrepreneurial capacity over the years. Two of the six Shaw children, Hank and Scott, run a successful earth moving business today, one that has seen the oilpatch become their major market. Hank and Scott own and operate Shaw Earth Moving Inc., a Gainsborough-based company that’s grown from one scraper to a fleet of over 30 pieces of iron. Hank is 53, while Scott is 49. “We’ve been in business for 35 years,” said Hank, speaking for his brother Scott, who was away at the time of the interview on April 16. “It was 1975 when we bought our first ‘buggy.’” “When we first started, we were doing all RM work.” In the mid-1990s, they started to get into the oilfield, which soon accounted for a quarter of their work. Now, 15 years later, the numbers have reversed. The oilpatch now accounts for three quarters of their business over the last two or three years. “We primarily build leases, lease roads, and do sand and gravel,” Hank explained. Their main operations are run out of Gainsborough, but they have a small satellite operation of truck and backhoe based at Carlyle, where Scott calls home. “Our main work goes from here to No. 1 Highway to the north, and over to Weyburn. We do some into Manitoba, mainly the CNRL field around Pierson, and some around Sinclair,” Hank said. “We’ve been really good the last three years, last year was one of our busier years,” he added, pointing out that federal infrastructure stimulus money has been welcome. “We did more RM work.” They also benefited from good weather last fall, which plays a major role with their scraper work. That said, he anticipates 2010 will be busier, noting 2010 is going to surpass 2008. ɸ Page C11

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PIPELINE NEWS May 2010

the last 15 in oilpatch

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ɺ Page C10 The fleet is now made up of eight scrapers, 13 dozers, four graders, two loaders, three backhoes, an excavator, a sheepsfoot packer, two tandem gravel trucks, an end dump, a belly dump, and two lowboys. With so much iron, one truck is now dedicated to lowboy hauling. Off to the auction Two more dozers are on their way, picked up at auction in Texas. One’s a D6T, the other is a D8T. Hank regularly attends the big heavy equipment auctions held by Ritchie Bros, where they pick up the majority of their equipment. Of the recent purchase, he noted, a D6 works better in the spring, while a D8 shines while ripping in winter. “I’ll go to two or even three sales every year,” Hank said. “A lot of our equipment we buy with 3,000 to 5,000 hours. It’s getting down into our price range that we can pay over five years, and usually has a new Daryl Burnett, standing, once asked if he could bring his tools to work, and has since spent most of his time in the shop of Shaw Earth Moving Inc. He also runs a grader occasionally. Bill Scott, seated, undercarriage.” spends most of his time on this grader, which he is reÀlling with oil. Pieces are typically disposed of once they get to the 12,000 to 14,000 hour mark, hopefully before major engine or transmission work is needed. “We’ll put 1,500 hours a year on Cats,” he commented. The company was originally founded by Hank and Scott’s father, Jim Shaw, Sr. He farmed, had an equipment dealership, and eventually bought a scrapRemote site data er after working for another company. SELF POWERED, Jim Shaw Sr., worked for RMs, running grader, CLASS I DIV I then for an Oxbow contractor, along with Hank. “We TEMPORARY PUMP UNIT ON/OFF TANK LEVELS SITES GEN-SET ON/OFF & ALARMS bought a buggy in 1975. The next year, we were on our own.” Jim Shaw Sr., passed away in 1983. INC “We got working around 1977 with Wes Carson WE OMIN L G T AN L DO TE out of Whitewood. We worked together with him TAN K LE WN A XT: PUMP ON/OFF MODBUS V K E GA LS LARM AL GAS DATA until 1992.” SU S DAT ARMS M A FLA P AL REP RE ARM OR “By then we were up to about three or four bugT KO ALA S RM gies and a Cat, a fairly small operation,” Hank recalled, adding they had built roads all over east central Saskatchewan. ɸ Page C12

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PIPELINE NEWS May 2010

Road builders ¿nd growth in oilpatch Hank Shaw, one of the owners of Shaw Earth Moving Inc. of Gainsborough, talks with a Caterpillar mechanic about a pump replacement on a D6R dozer.

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ɺ Page C11 They built their first lease around 1994, and expanded quite a bit into that in the next few years. “As we got a little more experience, a little more opportunity came to us.” They built more roads at first, he said. “There was more money in oil than RM work,” he noted, but also pointed out they never forgot their roots, working for RMs. Do a good job “Wes Carson used to say, ‘It doesn’t take any longer to do a good job than a poor job.’ That’s important for RMs. One hundred good jobs can be forgotten about, but that one poor job gets remembered.” Even then, a lot of the RM work is oilpatch-driven. “We do a lot of RM roads that are paid for by the oil company, from maintenance to construction.” Entrepreneurial spirit is definitely a family affair. Hank and Scott’s sister, Cheryl-Anne, owns an insurance agency that used to be run by their mother Eloise. CA Shaw Insurance and Travel now has Gainsborough and Carnduff locations. That business was started by their grandfather. Another sister, Judy, farmed with late husband, Bud. Cynthia, the third sister, was a registered nurse, and used to own a store with her husband David. Cynthia has since passed away. As for Jim, Jr., he owned the Riverside Hotel in Gainsborough for many years, before selling it in 2000. Scott’s son Jamie currently runs buggy, having graduated from high school last year. He’s looking at welding or mechanics, according to Hank, who adds he’d like his son to see the world a bit, even though he has shown an interest in the business. In the summer time they have around 25 to 28 employees, and may have more if they can find them. Quite a number of their employees come from Manitoba, particularly from Deloraine, where about a half-dozen hail from. The company maintains two houses in town for accommodations. However, most of the employees are local, with a few Alberta hands thrown in. With the end of breakup looming, things were already starting to ramp up. “I’m going to have six Cats and three graders working next week, if it doesn’t get wetter,” he said on April 16. “We’re going to build a new shop and office,” Hank forecast. “That’s on our agenda. We’ve long outgrown our shop.” “If you don’t get bigger all the time, you get left behind.”

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PIPELINE NEWS May 2010

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New insulated building operation Estevan –They started operations April 19, and were working on their first building the next day. Integrated Thermal Solutions Inc., or ITS, is a new building and insulation company that just fired up in Estevan. It’s owned by Brent Gedak, but is a separate and distinct operation from Brent Gedak Welding. Both operate from the same new shop on the west side of Estevan, where ITS will lease space. Mike Lavoie and Kyle Luc are heading up the operation, as the respective field and sales managers. Combined, the two have 15 years experience in industrial insulation and metal buildings. The company will start with four people, and both Lavoie and Luc will be on the tools. They will have access to numerous subcontractors. The company constructs buildings out of polyurethane insulated panels. It’s essentially a sandwich board, with aluminum on each side. Thickness can vary from 1.5 to 6 inches, giving corresponding R-values of about R12 to about R40, accordingly. The panels are typically 33 to 48 inches

wide. When assembled, aluminum channels are used to join the panels together. The walls are self-supporting. Roofing can be made out of the same panels, except that it is put onto a welded truss system, and a ridge cap is added. “Once the roof is on, it’s just like a house,” Lavoie said. The buildings can be used for skid packages, separators, water disposals, or vessels. It can either be prefabricated, or assembled on-site. ITS will also be building ‘utilidors,’ basically insulated enclosures around piping, so that pipes do not need to be insulated individually. “It’s a complete, enclosed building, like a minibuilding for pipes,” said Lavoie.

“A big part of our business will be pipe insulation,” added Luc. The company will also offer spray foam insulation and removable covers. “We’re not limited to the oilpatch,” Luc said, “These panel buildings can be used in agriculture, garages, commercial or residential. It could be a doghouse if you wanted.” He added, “We’re not limited as to where we can go. We’re willing to serve Western Canada.” When asked why get into the insulation business, Gedak said it is complementary to his other business. “There is a market for this, and an opportunity. “I see potential in these two guys, and

they’re going to run it and manage it.” The new shop has built in anticipation of the new insulation business, and has doors large enough to accommodate some of the bigger packages.

Photo submitted

These panels have aluminum on the outsides, and polyurethane in the middle. Combined, they make up the walls and roof of custom buildings that can go on things like skid packages or around piping systems. Integrated Thermal Solutions Inc., or ITS, of Estevan, has just started operations producing these buildings. Photo by Brian Zinchuk

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C14

PIPELINE NEWS May 2010

Future bright in all sectors for Komatsu Regina, Saskatoon – A broader focus on multiple sectors has Komatsu well positioned for growth in Saskatchewan, according to Fred Hnatiw, Saskatchewan operations manager for SMS Equipment based in Saskatoon. S a s k a t c h e w a n’s Komatsu dealer, SMS Equipment was formed in 2008 by the amalgamation of Transwest Mining, Federal Equipment and Coneco. Globally, Komatsu is one of the largest heavy equipment manufacturers. SMS has two Sas-

katchewan branches, Regina and Saskatoon, with about 28 employees inclusive. “The trend in 2010 is looking positive again as activity in the oilpatch heats up,” Hnatiw told Pipeline News. “The future in Saskatchewan is bright in all sectors – mining, forestry, oil and gas, road building and infrastructure.” “We are seeing increased activity in all those sectors.” Hnatiw said that in the past, the southern branch focused on mining, while the northern

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branch had its eyes on forestry. Now, they are broadening their horizons. Cliff Jones looks after the Regina branch of SMS, having moved to the Queen City last year after a two-year stint in Yellowknife, NWT. Jones said the oilpatch is a substantial portion of their Saskatchewan business, about 35 per cent overall. Out of their Regina location, it’s about half. “It’s really grown in the last three to four years,” he said. Most of the equipment the oilpatch has been buying from them falls under three types – dozers, wheel loaders and excavators. Dozers are typically mid-sized. The loaders are usually the WA 150, 200 and 250 series, and will often see work on drilling rigs or in road building. Excavators can vary in size from the PC 200 to the PC 300 range. Excavators tend to be numbered accord-

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ing to weight in metric tonnes, with a PC 200 being roughly 20 metric tonnes, and a PC 300 being about 30 metric tonnes. As for dozers, D65 and D85 models are common, mid-sized dozers, at 200 hp and 246 hp respectively. A new grader model is anticipated in the coming months, a heavier design, Jones said. “As this new model comes out, it will be a new ball game,” he said. Do Saskatchewan clients prefer new or used? That depends on the economy, according to Jones. “Last year, we sold a lot of used equipment versus new, due to the economy.” He noted there was a lot of used equipment on the market. “Now, we’re seeing some good pricing on new,” he said, pointing out that the Canadian dollar’s rise against the U.S. dollar has made equipment more affordable. Komatsu’s equip-

ment is manufactured worldwide. “Sometimes we get a crawler from Brazil. Wheel loaders

are being manufactured out of South Carolina,” Hnatiw said. ɸ Page C15

There’s plenty of visibility from the cab of a Komatsu 155AX dozer.

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PIPELINE NEWS May 2010

C15

Komtrax calls home ɺ Page C14 Komatsu will send equipment from wherever they need to in order to satisfy demand, according to Hnatiw. Komtrax Telemetry systems are becoming more commonplace on highway trucks and even passenger vehicles. For the past four years, Komatsu has offered the Komtrax system, as a standard option on all its machines, similar in concept to General Motor’s OnStar system. According to Hnatiw, the GPS/telemetry system

not only tracks location, but can be a key component in maintenance. That’s because its satellite communications ability will let the owners know what’s going on with the machine. “It’ll send us an error message if there’s a fault code, calculate operator use, and even give how many hours in power mode, economy mode, or idling. It’s great for fleet management,” Hnatiw explained. It will even tell you when it needs periodic maintenance, like oil changes.

Hnatiw added there is no charge to the equipment owner for the services. “It’s a phenomenal piece of software.” He’s even tracked a piece of equipment from the time it left the factory, following its progress along the highway to the delivery point. “Most guys say, ‘I don’t need it,’ until they have it.” Then they don’t know what they did without it, according to Hnatiw. “Komatsu is a technology driven company,” he concluded.

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C16

PIPELINE NEWS May 2010

The ‘doctor’ does house calls Gainsborough – When a piece of heavy equipment is in need of serious repair, it’ll be put on a lowboy and sent to the ‘hospital,’ or shop. However, a lot of

the time the ‘doctor’ does house calls. That’s the role of field service technicians like Rick Davies, who works out the of the Estevan

A service truck for a heavy duty mechanic is like a shop on wheels.

branch of Kramer Ltd., Saskatchewan’s Caterpillar dealer. Pipeline News had the opportunity to go out with Davies on a service call to Gainsborough, where two of Shaw Earth Moving Inc.’s dozers were ‘sick,’ and in need of repair. For most oilpatch companies, spring break-up is spent doing maintenance, ramping up for the summer season. Davies is a journeyman heavy duty mechanic, having worked with

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Kramer Ltd. for several years, first as an apprentice, then as a journeyman. Assisting him on this day, April 16, was first year apprentice B. J. Bolen. “I’m a designated field service tech,” Davies explained as he plucked tools from his toolbox. He drives a Ford F-550 truck equipped with a service body, air compressor, and crane. When you work with big equipment, you need big tools. Davies finds himself working in Kramer’s shop, in other companies’ shops, or in the field, repairing anything from small skid-steer loaders to large D11 dozers at the local coal mines. He has large air tools up to 3/4 inch drive, and “as many tools as I can buy.” The majority of the hand tools are Davies’ own personal collection, but nothing out of the ordinary. Any specialty tools come out of the shop, as needed. Journeyman heavy duty mechanic Rick Davies While he’ll have swaps out a HEUI pump on a D6R dozer. Davies some standard parts, like is a Àeld service technician with Kramer Ltd., Saskatchewan’s Caterpillar dealership.

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bolts and hose clamps, the wide variety of equipment he may encounter limits what he can carry. “There are too many kinds of machines to carry all the fuel filters, stuff like that,” he explained. “If

this machine was in the field, we’d take air filters and fuel filters for the machine, if that’s what we need. It is the customer’s dime, so fewer trips are better. ɸ Page C17

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PIPELINE NEWS May 2010

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B.J. Bolen, a Àrst year heavy duty mechanic apprentice with Kramer Ltd., gets under a D8T dozer to get up close and personal with a troublesome starter.

Following a heavy duty mechanic in the ¿eld ɺ Page C16 “We usually pack a lunch.” They run 12 hour shifts, and have 24-hour on call service. “If a drilling rig is down at two in the morning, we will go out there,” he said. For this job, Bolen is tasked with removing the starter on a D8T, while Davies tackles a hydraulic electronic unit injection pump, or HEUI. In this case, Davies brought out a pump and injectors, as well as a starter. There was a time when some of the more sophisticated tools for mechanical diagnosis included a stethoscope to listen to the engine. These days, Davies said, “It’s all done by laptop. You do electronic tests with the system. You can usu-

ally identify a problem, say with a pump or injector. “I always have a laptop with an air card, so we can order parts from the field. “It depends on what you’re trouble shooting. Sensors are usually pass/fail. They’re usually pretty accurate.” It’s also easier if you’re not approaching the problem blind. “Most operators are good at saying ‘This is what it’s doing,’” he said. Sometimes it’s easy, other times, there is a lot more troubleshooting involved. “Sometimes it’s ‘The engine isn’t sounding right,’” he added. Even with all the electronics, it’s still very much a hands-on job, as Davies sits on the less-than-

comfortable tracks, pulling out the HEUI pump from the engine compartment of the D6R. Within about four hours on site, the repair is nearing completion. A typical service call will run from a couple of hours to a day and a half, according to Davies. The typical pattern is to go out, troubleshoot the problem, get the parts, and return to install them. Davies took his training at the Kelsey campus of the Saskatchewan Institute of Applied Sciences and Technology. You can say turning wrenches is in his blood. “My dad was a mechanic at SaskPower,” he said. Davies is from Estevan, and has spent most of his life there, except for schooling.

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C18

PIPELINE NEWS May 2010

Moody’s Construction line growing, new Balzac location opened in January Saskatoon – Moody’s Equipment of Saskatoon got into heavy equipment six years ago, and is continuing to grow the line, with the opening of a new location at Balzac, Alta., near Calgary this past January. In mid-April, the company also opened a new facility for its agriculture side at Unity. Moody’s is a New Holland dealership which started in Perdue, but is now headquartered in Saskatoon. New Holland refers to their heavy equipment line-up as their construction side. It was launched in 1998, but really has been around for several decades, under various brands. There was a Ford backhoe, for instance, as well as a Fiat wheel loader. A New Holland skid-steer loader was prototyped around the same time Bobcat came out with their initial model. Now those brands have been consolidated under one brand, New Holland Construction. Parent company CNH also has a Case line of heavy equipment, but that is distinct from the New Holland Construction division. Moody’s was started by the Moody brothers – Burke, Darrel and Pat. Burke has retired as president, Pat left in 2004, and Darrel is still a silent partner. Of the new ownership, John Mathison is the senior partner among eight partners. He said a lot of agriculture customers’ needs overlapped into using construction-type equipment, such as skid-steer loaders and backhoes. ɸ Page C19

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Saskatoon-based Moody’s Equipment opened a new location at Balzac, Alta., near Calgary in January. Photo submitted

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PIPELINE NEWS May 2010

C19

Mixing in a little bit of oilÂżeld

Moody’s Equipment of Saskatoon got into the heavy equipment business in 2004.

Éş Page C18 Moody’s Equipment got into the construction side in 2004 after being in business for over 35 years on the agriculture side. “We saw it as another opportunity to build the business,â€? explained Aaron Gross, construction sales manager for Moody’s. The bulk of the dealership’s business is agriculture. Of their approximately 140 employees, there are about a dozen workers strictly dedicated to construction, plus administration, parts and service personnel who are shared by both divisions. Moody’s has locations spread throughout the western side of the province. The construction locations are Saskatoon, Lloydminster, and Balzac. Olds, Alta, will become a construction location as well, according to Mathison, who said it is in the works for this year. Last year Moody’s bought Alberta-based Belsher Equipment, giving them locations in High River, Olds and

Calgary. The Calgary site was not a good location, and was very tight to get in and out of, according to Mathison, necessitating the move to Balzac. That location is about evenly split between agriculture and construction. “We had to move it out of town to get access to more wide open streets,â€? he said. Having agricultural location spread all over the place helps as these can be used as support stores for ordering parts and the like. For service, the company has several mechanics trained for both the agriculture and construction sides. They have ďŹ ve service trucks based in Saskatoon, three in Lloydminster, three in Balzac, and a satellite at Rosetown that services the Kindersley-Kerrobert area. Mathison said they had to upgrade their service trucks, because the demands of construction are greater than agriculture. They needed service bodies and cranes on the trucks to work on excavators,

for instance. However, because so much of their equipment out there is new and under warrantee, there aren’t a lot of repairs needed just yet. Most of Moody’s clientele in the oilpatch to date has been in general oilďŹ eld maintenance, according to Gross. Moody’s territory for New Holland Construction is northern Saskatchewan and eastern and southern Alberta. They also carry Kobelco excavators for all of Saskatchewan and most of Alberta. Kobelco excavators have the pioneering Bladerunner design, with a sixway dozer blade and a beefed-up undercarriage to match. It’s an excavator and dozer, wrapped into one. The Bladerunner is easily their best moving excavator, according to Gross. Moody’s also carried Sakai compaction equipment. Breaking into a market with a new brand product where there are

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long established players requires you to go out and show your product, according to Gross. “We’re steadily increasing our market share each year, even last year, in the down year. In every category, everything went up,� he said. Their primary focus has been on new equipment sales. “We still do quite a bit of rentals, or rent-to-own.� For bigger jobs, clients may come in and rent some equipment, and that in turn converts into a sale. “The majority end up buying out the equipment,� Gross said. “It’s a great way for guys to try our product, for a three to six month

Photo submitted

rental, and then buy it out.�

Their oilpatch clients tend to go for excavators, backhoes, wheel loaders, skid-steers, and some smaller 95 hp dozers for ďŹ nishing work. As for the future, Mathison says they are looking at another location right now, but won’t go into too much detail just yet. “We see the business continuing to grow for us,â€? he said.

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C20

PIPELINE NEWS May 2010

Edge Safety ¿res up in Weyburn By Brian Zinchuk Weyburn – Seeing an opportunity in the evergrowing field of oilfield safety, Wayne Ebel and his wife Karol Ruckaber decided to set up Edge Safety in Weyburn. Edge Safety & Supply Inc. started operations on Jan. 4, and held its grand opening on Mar. 25, with a barbecue serving up burgers and hot dogs for visitors. Ebel is a fixture in the community, as owner of United Centrifuge. Ruckaber is the owner of Edge Safety, while Ebel

acts as manager. “We originally started Edge Oilfield Services in 2002. Its main focus was fire extinguisher rentals on drilling rigs and selling and renting H2S odour control systems,” explained Ebel. In 2009, they changed their focus to be more safety related. “With increased awareness of safety, we noticed there was no one that carried any amount of safety equipment for the oil industry or construction industry in Weyburn,” Ebel said. “We were ordering

safety gear. Why don’t we have a store that sells it here? Everyone’s going to Regina, why not keep that money here?” he reasoned. In addition to safety equipment and training, he added, “We decided to expand our line into oilfield supplies, focusing on service rigs.” They now have items like slings, tank truck hoses, pipe valves and fittings. At the far end of the building is a hydraulic hose setup for new hoses or repairing existing hoses. They still carry H2S odour control

In addition to safety gear, Edge Safety & Supply also stocks hardware for service rigs.

systems. The granular substance reacts with H2S, becoming sulphur,

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dirt and water, Ebel explained. “I was part of the people trying to get the Energy Training Institute to come to Weyburn,” he said. When that failed to materialize, they decided to offer their own training. A key focus of the business will be safety training. There’s a 12-person classroom in

the building. They’ve brought on Morley Forsgren, who is former deputy chief of the Weyburn Fire Department. He’s spent 22 years working in emergency services, first aid and EMT for 12 years, then the last 10 with the local fire department. “I came over to do this, basically to do more training,” he said. ɸ Page C21

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C21

Edge Safety offers safety and training supplies ɺ Page C20 His certifications fill a two-inch binder. Among them are level II firefighter, hazmat tech, fire extinguisher and certified fire extinguisher tech. He teaches first aid, WHMIS, TDG and will soon be doing fall protection training. Forsgren also can do face mask fit testing. “I’m a certified rope rescue technician,” Forsgren added. “Fall protection and confined space is something I delve into.” “Most of my training is going out to their equipment, and using their equipment specifically.” Ebel noted, “We found an area where

Morley’s more flexible to train on evenings or weekends to fit with the oilfield schedule. If oilfield workers are unable to come here, we will go to them, and use their facilities.” Asked if there has been a lot of uptake, Ebel said, “Yeah, we’re providing training right now for a number of local service rig companies, plumbing contractors, re-certified red cross volunteers and seismic crews.” In regards to safety training, Forsgren noted, “You can only do you job if you know what you need to do. The element of an emergency is added stress. They’ve got to know what they need to

do in an emergency.” “I’m a strong believer in people knowing CPR and how to use AEDs (automated external defibrillators). In the last year, we’ve had two saves [locally] because of AEDs. It’s a busy time right now for fire extinguisher maintenance. “Everybody does their annuals during breakup,” Ebel said. “We brought in the latest automated, state of the art fire extinguisher recharging and hydrotesting equipment.” The company plans on servicing southeast Saskatchewan, primarily the Weyburn region, but up to and including Carlyle. There are four employees, including Karie Ruckaber, administration, Jeff Wagner, sales, John Smolinski, sales, and Forsgren in training.

Wayne Ebel, manager of Edge Safety & Supply in Weyburn, displays large slings they now carry.

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C22

PIPELINE NEWS May 2010

As common as a wrench in a toolbox

The Toolcat combines features of a pickup truck, skidsteer loader, tractor and utility vehicle

Regina – Bobcat created the category of skidsteer loaders, and to this day, the name is synonymous with that type of equipment. And while most heavy equipment manufacturers focus on being big, Bobcat focuses on being small. If you move dirt in the oil patch, it’s a good bet you have a Bobcat in your eet, especially for the close-in work. There are Bobcat dealerships in Regina, Saskatoon, Moose Jaw, Yorkton, Kindersley and Lloydminster within Saskatchewan. Gary Graham has been with Bobcat for 28 years, working with different dealerships since

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April, 1982. Most of that time was in service, but now he’s the general manager for Bobcat of Regina. “I used to go down to the factory and pick them up,â€? he said. Despite having a diversiďŹ ed line that runs from min-excavators to small utility tractors, the bread and butter is still the old faithful. “It’s mainly the skid-steer.â€? Graham said. Units see use in general construction, agriculture, and the oilpatch as well. Two models in particular are common, the S185 and S250. The model numbers are based on lifting capacity. A S185 will safely lift 1,850 lbs from top to bottom, for instance. “It’s double that for cab-high, before it wants to tip over,â€? Graham explained. Tracked versions, with rubber tracks that reduce ground pressure, became available about 2000. They are quite popular, and becoming more so all the time, according to Graham, accounting for about a third of skid-steer sales. “There’s conditions like this – it’s been raining for two days.

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You’ll be able to go to work sooner, because you have oatation, whereas with a rubber tire, you’ll get stuck in the ruts,� he said. There’s also an improvement in tipping load. One Moose Jaw client went from three rubber-tired units to three tracked units. The result was less down days and the ability to lift more products. In recent years they brought in a model of

skidsteer does something novel – it actually steers, as opposed to skidding. A little wider that comparable models, both axels can steer. It can also be used in conventional skid-steer mode. “This sets us apart from anyone else,â€? Graham said. Most landscapers have some form of skidsteer loader. “In some cases, they’re a gloriďŹ ed wheelbarrow, but they save a lot of man-hours,â€? Graham said. ɸ Page C23

The safety bar across your lap is a key safety feature of the Bobcat skidsteer loader.

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C23

Construction, agriculture, and the oilpatch are all on Bobcat's resume Gary Graham is the general manager of Bobcat of Regina. He’s been working with various Bobcat dealers for 28 years.

ɺ Page C22 The list of possible attachments is almost as extensive as the imagination, but some attachments are pretty common. Typical ones include a smooth bucket, used for levelling and backfilling. A toothed bucket is more for digging, and will be the width of the machine. A smooth bucket might be a little larger. A snow bucket is bigger yet. “At some point or another, pretty much all do it,” Graham said of snow clearing, explaining there’s not a lot of money in it. “For one, it doesn’t snow that often, and it’s hard on guys.” Augers are also common for digging holes. Then you get into the specialty attachments. There are asphalt planers, pallet forks, landscape rakes, rototillers, forestry cutters, the list goes on and on. One attachment, a backhoe, grew into its own product line. In 1986, the company began to sell mini-excavators, small rubber-tracked machines that can get into tight spaces and replace a lot of back-breaking shovel work. A recent addition to the line is the Toolcat. It’s a utility vehicle that’s a combination pickup truck, skid-steer loader, tractor and utility vehicle with four wheel steering. Attachments can go on the front or back, and it has a box to carry your load. A utility vehicle will be introduced in June, Graham added. Most Bobcat models are manufactured in North Dakota, where the company is based. It got its start at Gwinner, ND, in the late 1950s, and has been there ever since. All Bobcats are diesel-powered and used Kubota engines. “We now offer operator training, and we do that in house,” Graham said. “Most people have run them for years, and it’s old hat.” The training includes videos, a test, and practical hands on experience. They go over items like safety equipment, getting in and out, attachments, and driving. The course takes most of a day, and they try to keep class sizes to eight at a time.

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C24

PIPELINE NEWS May 2010

An electrical Àre destroyed Pipe Hustler’s shop, two lay-down trucks and several personal vehicles on Mar. 9.

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Pipe Hustler on the rebound after shop ¿re McTaggart – A devastating fire wiped out the shop and half their fleet of lay-down trucks, but Pipe Hustler of McTaggart is back in the swing of things and beginning the rebuilding process. Until the Mar. 9 fire, Pipe Hustler had four lay-down trucks, and a spray truck, what they call a spray hustler, ac-

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cording to Jason Balaberde. He’s a partner in the business, with his father Les and uncle Dave Balaberde. McTaggart is a small community 13 kilometres northwest of Weyburn. In addition to the shop and two lay-down trucks, several personal vehicles were lost. “She was a complete and total loss,” Balaberde explained. “It was an electrical fire. The power box shorted out.” Jason had just talked to Dave on the phone at around 10 p.m. on Mar. 9. He got a call 10 minutes later, saying the shop was on fire. Jason lives in Yellowgrass, and arrived around the same time the Weyburn Fire Department did. They had no fire hydrants, and

could do nothing but watch it burn. The image of the fire was seared into Jason’s mind. “It was pretty horrific,” he said, noting it’s an image he’ll remember for the rest of his life. It has been tough on his father and uncle, too, he added, but they’re on the rebound now.“Work’s starting to come. Breakup’s over, we’re getting busy.” “Work just kind of went crazy.” They have insurance, but lay-down trucks are hard to come by. Balaberde said they are the only company in Saskatchewan doing that type of work. The plan is to find another used truck and bring the fleet back up to three. They are also working on quotes to rebuild the shop, in the exact same spot, he added.

LECLAIR TRANSPORT

Lyle Leclair - Cell: 306-421-7060 Larry - Cell: 306-421-7131 General Oilfield Hauling


PIPELINE NEWS May 2010

C25

Spring BBQ ARC Resources held BBQ on April 16, 2010 at Cowan OilÂżeld shop in Gainsborough. The event was in appreciation for work done in the recent Goodlands, Man., project. Calgary reps were in attendance to deliver the appreciation speech and to give hand outs. Blaine Chrest and Jim Ermantrout were on hand cooking steaks on their TS&M BBQ. Photo submitted

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C26

PIPELINE NEWS May 2010

A hotel that’s still a hotel If you can manage to eat this huge home-made burger without requiring a few napkins, all the power to you. The Riverside Burger is a highlight of the menu at Riverside Hotel in Gainsborough. Photo by Brian Zinchuk

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Gainsborough – Many hotels in small town Saskatchewan these days are that in name only. In reality, they’re the local bar, and stopped renting rooms years ago. However, the Riverside Hotel in Gainsborough still does rent rooms, as well as cook up some pretty good grub, to boot. Just four kilometres west of the Manitoba border, and 19 km north of the U.S. border, Gainsborough is at the extreme southeast corner of the province. Being a small farming community, it’s benefit-

ted greatly from having the oilpatch around. The Riverside Hotel at lunchtime has plenty of workers from locally operating Cowan Oilfield Maintenance and Shaw Earth Moving Inc., as well as other firms, at the tables. “My rooms are always full of riggers,” said Veronica Fisher, owner for the past 10 years. “I’ve got some guys from a rig driving back and forth from Frobisher because they like the food,” she added. The rooms tend to be full, except for during road ban season.

“The the rooms are full, that’s my gravy.” However, sometimes the gravy is on the food plates. Fisher reports up to 100 people coming in for wing nights, and the Wednesday noon smorg is also popular. They also have a steak pit that runs every night except for some Sundays. It takes two very large hands to fully grasp their signature Riverside Burger. Enough people come in for the food to make up for the slower years. “The oil definitely helps, and my rooms are cheap,” she said.

Renegade increases ¿nancing Renegade Petroleum Ltd. and the underwriters of a $25 million bought deal subscription receipt financing have agreed to increase the size of the bought deal financing to 11.43 million subscription receipts

for aggregate gross proceeds of approximately $40 million. In all other respects the terms of the financing and use of proceeds will remain as previously disclosed.


PIPELINE NEWS May 2010

C27

Nootka angles for oilpatch guests

Matt Cyr talks with customers about Àshing at Nootka Island Lodge at the Edmonton Home and Garden show.

Edmonton – Tim Cyr, who owns Nootka Island Lodge on the west coast of Vancouver Island, hopes his recent spring trade show tour of Western Canada, hooks new oil patch anglers to test the prolific salmon and halibut fishing in Nootka Sound this summer. “We use to get a lot of Americans, but we don’t see quite as many with their economy way it is,” said Cyr, who was interviewed while manning a booth with his son Matt at the Edmonton Home and Garden Show in March. “Fortunately, we have a pretty strong Canadian group of people. We’ve been doing a lot more trade shows and stuff in Canada, especially in Alberta and Saskatoon. “We haven’t done the home show before, but thought we’d try a different venue. So far it’s been good. There is a lot of interest and people are stopping by.” Nootka Island offers all inclusive packages for individuals and groups. As the web site states, the rates include two guests per boat with a guide, all fishing gear, care of your catch, a room and all meals. More importantly, Nootka Sound is known for supporting large number of prized Chinook that can range in size from 20 to 40 lbs. “Fighting wise, it’s about a pound a minute,” said Cyr. “We are fortunate in that we have the second biggest fish hatchery on the coast in our sound, so that helps to enhance all the stocks. Fishing is

as good now as it was 30 years ago. “The fish have to come by us to get to the rivers to spawn, so we are very fortunate that way. “Usually when they start showing up, the fishing is consistent throughout the season. The forecast for the return looks bigger this year. “The fishing season begins in June, and we go through to September with Chinook, coho and halibut all through that timeframe.” The Nootka Island Lodge display booth is plastered with photos of happy anglers embracing their weighty catch as proof the marketing is real.

Cyr and his son started their annual trade show swing across the west at Saskatoon Sports and Leisure show in early March with the wind up at the Grande Prairie Sports Expo in April. “We are still after the oilpatch client,” said Cyr. “There is lots of interest. The only thing is with northern Saskatchewan and Alberta, we are competing with the Prince Rupert area for fishing, but it’s been good educating people about the west coast of Vancouver Island. “Based on numbers from the Department of Fisheries and Oceans – they do a catch to angler ratio –our area is known as one of the highest catch to angler ratios.” This season will mark the 28th year that Tim and his wife Sandy have run the lodge along with help from their daughter Katie and son Matt and his fiancé Kym. “We have been doing this for 27 years, and our repeat business is very good and our word of mouth from our repeat business is probably our best advertising,” said Cyr who lives in Palm Springs in the off season. “We want to make sure guests have a good time to ensure they come back.”

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Nootka Island Lodge was the subject of an initial Pipeline News story last September shortly after they began to advertise to the oil and gas market in Saskatchewan in the wake of the U.S. economic downturn. “We‘re getting some interest from Pipeline News readers,” said Cyr. “This is our second year, so we will keep plugging away, and hope we get good responses from it.” At the Saskatoon Trade Show, Cyr gave away a fishing trip to the Saskatchewan Wildlife Federation to promote the show and the lodge and he did likewise in Edmonton and Grande Prairie. Nootka Lodge is more accessible than ever for oilpatch workers especially for Albertans who can fly direct by WestJet from Edmonton or Calgary to Comox on Vancouver Island in about an hour and half –

at their own expense. “From Comox, a lot of people rent a car and drive over to the other side of the island,” said Cyr. “It’s about an hour and half drive and then you jump on a float plane, and you are there in 10 or 15 minutes.” Guests are allowed to take home a total of eight salmon and two halibut in insulated foam coolers that Nootka Lodge supplies as legal carry-on luggage. “If you leave the lodge at 2 p.m., you are back home at 11 that night,” said Cyr, noting the fish will be cool and

fresh on arrival. “We cater to individual and groups,” he added. “The nice thing is about 20 people fill the lodge. If companies send groups of customers or employees as a thank you for doing business, it works out quite nice.” The Nootka Island Lodge web site notes the sound was discovered by Captain Cook who sailed into the area in 1778 on the Resolution and Discovery. Asked if Cook and his crew stayed at Nootka Island Lodge to fish Cyr, deadpanned, “We weren’t quite open yet.”

"We Dispatch for the Oil Patch" • Two Way Radios • Alarm Monitoring • Safety Checks 738 5th Street (back door) Phone: 634-3522 24 Hour Service - 7 Days A Week!


C28

PIPELINE NEWS May 2010

Coming Up - OilÀeld Maintenance - Service Crews - Pressure Welding - Pipeline Construction - Battery Construction - Rent or Sell New & Used Equipment

The new Best Western hotel under construction in Estevan should help alleviate accommodation shortages of recent years. Photo by Brian Zinchuk

Randy: 634-5405 - Cellular 421-1293 Darcy: 634-5257 - Cellular 421-1425 • Fax: 634-4575

LOCALLY OWNED & OPERATED BOX 843, ESTEVAN, SK.

24 Hour Service - 634-8737

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PIPELINE NEWS May 2010

CD Oilfield Servicing Ltd. is currently hiring for all positions. All tickets & Class 3A License an asset, experience preferred but will train the right applicant.

Call Adam at 204-851-2118

Full Time Employment for Picker

Truck Helpers

Call Mel at (306) 487-2525

Lampman, SK

Three service rigs This trio of Rearden service rigs could be found on the west side of Weyburn on April 6. Photo by Brian Zinchuk

CAREER OPPORTUNITY

Weyburn, Halbrite and surrounding area, OilÀeld Safety CertiÀcates an asset but not necessary. BeneÀts package available.

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Truck Drivers Wanted Brady Oilfield Services LP.

Apply with Resume to Claude: Fax: 306-825-6305

Attn: Scott Juravle P.O. Box 271, Midale, Sask. S0C 1S0 Fax: (306) 458-2768

Career Opportunities

HELP WANTED

C29

Drop by: 3702, 41 Street, Lloydminster, SK

Phone (306) 825-6302 • Fax (306) 825-6305 Box 796, 3702 41 Street Lloydminster, SK S9V 1C1 WELL SERVICING

RIG MANAGERS / DRILLERS / DERRICKHANDS / FLOORHANDS

Estevan, Saskatchewan

Greg Cousins Construction Ltd. EMPLOYMENT OPPORTUNITY

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Fax Resumes to 306.482.5256 Apply online at www.gregcousinsconstruction.com

Eagle Well Servicing is a dynamic and rapidly growing company. We understand that a company is only as good as its people, and we’re proud of the exceptional team we’ve built. If you are looking to become a part of a fast paced and challenging team-based work environment, we are the place for you.

Ask about our competitive pay, excellent employee benefits and opportunities for advancement. Applicants are invited to submit resumes along with driver’s abstract to sheldon.milford@iroccorp.com or fax to (306) 634-8238. We thank all applicants for their interest, however only those who will be interviewed will be contacted.

IROC Energy Services combines cutting-edge technology, state-of-the-art, equipment and depth of experience to deliver a product and services offering that’s unrivaled in the oilfield services business. IROC.... we’re ready.

email: eaglejobs@iroccorp.com

www.eaglerigjobs.com


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PIPELINE NEWS May 2010

Career Opportunities www.suretuf.com

PLASMA TABLE OPERATOR Applicants must have welding background. Driver’s license required. Reliable, team player. Wages depend on experience. Benefits available. Performance bonuses. Only those to be interviewed will be contacted.

Fax: (780) 872-5239

Apply in confidence to: Fax (780) 808 - 2273

Full Time Employment for

1-A Truck Drivers • Winch experience an asset Call Mel at (306) 487-2525

Crew Foreman

Experienced FOR LLOYDMINSTER AREA

MUST: • Have Valid Drivers License & Be A Team Player • Safety Tickets • Picker & Bobcat Experience An Asset C’s OFFERS: • Top Wages • Benefits Package • Performance Bonuses • Scheduled Days Off • Opportunity For Advancement • C.O.R. Safety Program • AB & SK B31.3 Q.C. • Premium Equipment DUTIES: • Daily Operation Of A Light Picker Truck • Pipe-fitting & Construction

OILFIELD SERVICE LTD.

CONSULTING & CONSTRUCTION

Lampman, SK

Apply in confidence to: Fax (780) 808-2273

Reliability at work CUSTOMER SUPPORT REPRESENTATIVE

TRICAN WELL SERVICE LTD. is one of Canada's fastest growing well service companies, providing a comprehensive array of specialized products, equipment and services utilized in drilling, completion, stimulation and reworking of oil and gas wells in the Canadian and International marketplace. At Trican, we base our recruitment practices on the belief that a company's greatest asset is its people. Trican provides services in Fracturing, Cementing, Acidizing, Coiled Tubing, Nitrogen and related services in our field bases ranging from Fort Nelson, BC to Estevan, Saskatchewan. WE ARE CURRENTLY HIRING:

• SUPERVISORS • OPERATORS • DRIVERS • FRAC HANDS • HEAVY DUTY DIESEL MECHANIC • YARD/SHOP PERSON A valid Class 1 required as well as prior experience in the above pressure pumping operations.

Trican offers a dynamic work environment and a competitive salary and benefit package. Please apply in person to any of Trican's field bases or forward your resume and references, in confidence to:

Trican Well Service Ltd. Box 849 Estevan, SK S4A 2A7 Fax: (306) 637-2065 • Email: vscott@trican.ca

Phoenix Technology Services is a progressive Calgary based directional drilling company that is seeking motivated, team oriented individuals to fill the following positions for both domestic and international:

Measurement While Drilling (MWD) Operators Seeking dynamic individuals who are detail oriented, have strong communication skills and willing to work in a rig environment. Previous MWD, rig experience or petroleum background would be an asset. Both employees and consultants required. Please forward MWD applications to: mwdcareer@pheonixcan.com

Directional Drillers Previous drilling/oil field experience is required for both junior and senior positions available. Excellent interpersonal skills are required in addition to analytical capabilities. Please forward Directional Drilling applications to: ddcareer@pheonixcan.com Pheonix Technology Services LP 11400-27th Street SE Calgary, Alberta T2Z 3R6

SpeciÀc Targeting Contact your local pipeline sale rep. to get

28,000 Circulation on your career ad!

We are seeking an individual to support the Saskatchewan area. This position is primarily responsible for retaining good customer relationships, supporting customer machines, and helping Bucyrus Canada reach yearly sales and bookings goals. Essentially this position will cultivate Bucyrus Canada customers. This will include but not be limited to scheduling customer visits, resolving customer concerns, and forecasting/supporting future customer requirements. Qualifications and Experience Post Secondary Degree or Diploma 5 - 7 years experience in a customer service role within a mining/manufacturing environment Proficient in MS Office Suite Knowledge of Bucyrus products is an asset Demonstrated organizational and communication skills

Bucyrus International Inc. is a NASDAQ traded company and a world leader in the design and manufacture of high productivity mining equipment for surface and underground mining. In addition to machine manufacturing, Bucyrus manufactures high-quality OEM parts and provides world-class support services for its equipment. Bucyrus has one of the most skilled, highly trained and talented workforces of anyone in our industry. Our employees work together to achieve success and growth in a highly competitive, international marketplace. Bucyrus Canada Ltd. Offers a competitive compensation package with excellent opportunities for growth and advancement.

HOW TO APPLY: Fax: 780-482-7858 or Email careers@bucyrus.com ** Write the position title in the subject line

www.Bucyrus.com


PIPELINE NEWS May 2010

Resources Guide

Vegetation Control (Chemical or Mechanical)

Southeast Tree Care COR CertiÀed Estevan, Sk. 634-7348

Bus: 306-453-2728 Cell: 306-577-8085 Cell: 306-482-7755 Fax: 306-453-2738 mel.fitzpatrick@midfieldsupply.com www.midfieldsupply.com

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Midfield Supply ULC P.O. Box 1468 402, #9 Service Road South Carlyle, Saskatchewan S0C 0R0

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

Bulk Agency

M.E.T. OILFIELD CONST. LTD. “All Your Construction and Maintenance Needs� SPECIALIZING IN: ENGINES, PUMP UNITS, UNIT INSPECTIONS, PIPE FITTING, TREATERS AND PRESSURE TICKET WELDING Box 1605, Estevan, Sk. S4A 2L7 Cell. (306) 421-3174, (306) 421-6410, (306) 421-2059 Fax: (306) 634-1273

912 6th Street, Estevan

634-7275

Box 208

Estevan, SK

S4A 2A3

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

Toll Free: 1-866-457-3776

Saskatchewan Owned & Operated

OIL / INDUSTRIAL / AGRICULTURAL / AUTOMOTIVE

352-7668

TOLL FREE 1-877-778-7460 WEEKDAYS 7:30 A.M. - 5:30 P.M. SATURDAYS 9 A.M. - 1 P.M.

STOCKING ENGINE PARTS

1404 SCARTH ST., REGINA, SASK.

Lloyd Lavigne • Kirk Clarkson Owners/Managers 5315 - 37th Street Provost, AB T0B 3S0

6506 - 50th Avenue Lloydminster, AB

Phone: (780) 875-6880

Phone: (780) 753-6449

Fax: (780) 875-7076

24 Hour Service

• Pressure Vessels • Well Testers • Frac Recovery • Wellbore Bleedoff • Ball Catchers • 400 bbl Tanks • Rig Matting • Complete Trucking Services

Dale (306) 861-3635 • Lee (306) 577-7042 Lampman, Sask.

Specializing in Industrial & Oilfield Motors

website. www.continentalengine.ca FAX 525-8222

continentaleng@sasktel.net

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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

C & B OilÀeld Services Inc. Aaron Folkerts 306-483-7258 Frobisher, SK

WK 6WUHHW (VWHYDQ ‡

JUSTIN WAPPEL - Division Manager

www.pennwest.com 311 Kensington Avenue, Estevan • 634-1400

401 Hwy. #4 S. Biggar, Saskatchewan PO Box 879 S0K 0M0 Ph (306) 948-5262 Fax (306) 948-5263 Cell (306) 441-4402 Toll Free 1-800-746-6646 Email: jwappel@envirotank.com www.envirotank.com


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PIPELINE NEWS May 2010


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