Pipeline News August 2010

PIPELINE NEWS Saskatchewan’s Petroleum Monthly

August 2010

FREE

Volume 3 Issue 3

Focus Edition: Transportation Corridors

Highway 40 project manager Kim Bonneau has a discussion with civil engineer Matt Harker, both work with Clifton Associates from Saskatoon. OilÀeld trafÀc on this highway has required its upgrading to a higher standard.

See story Page C14.

Photo by Geoff Lee

Rouse Clutches Made in Weyburn Page A8

Enbridge Superhighway ghway Page B1 Pa

Lloyd Mayor: Transportation Plan Page C1

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PIPELINE NEWS August 2010

News

Notes

NuLoch establishes repeatability NuLoch Resources Inc. achieved corporate production of 1,100 bbls of oil equivalent (73 per cent light oil) in late May as it pursued its Three Forks Sanish crude oil play in Saskatchewan and North Dakota.

Production included 315 boepd from Tableland, Sask., and 240 boepd from North Dakota.

Six (1.7 net) wells are currently drilling or awaiting completion.

NuLoch has drilled six (4.5 net) horizontal oil wells in the Three Forks Sanish formation at Tableland, Sask., since the fourth quarter of last year. The average initial gross production rate over 30 days (IP-30) is 165 bbls of oil per day for the first four (3.1 net) of those wells. A fifth well (0.7 net) is still in its initial 30 day period while the sixth (0.7 net) awaits its multi-stage fracture completion.

In addition to the IP-30 oil rates, these wells produce approximately 20 boe of liquids-rich natural gas per 100 barrels of crude oil. Capturing this value with centralized processing facility will be part of the development of this field, according to Nuloch.

“We have successfully extended our quickly developing Three Forks Sanish crude oil resource play in North Dakota onto our extensive 32,000 net acre position in Saskatchewan,” Glenn Dawson, president and chief executive officer, said in a news release. “A 100 per cent success rate on our first five wells is a considerable achievement in any emerging play.”

Altus acquires Peters Surveys Altus Group has acquired Saskatchewan– based Peters Surveys, effective July 1.

This acquisition will enable Altus Geomatics to further grow in the province of Saskatchewan and expands its business to include some civil survey work and targeted service to the potash industry.

Headquartered in Saskatoon, Peters Surveys is a professional land surveying and planning firm, providing a broad range of geomatic services within the province since 1979. It supplies a solution package for clients in both the private and public sectors.

Briefs courtesy Nickle’s Daily Oil Bulletin

PRIME Project director Jeff Ritter provides an overview of the effort to overhaul the Saskatchewan Ministry of Energy and Resources business processes to an Estevan audience on July 7.

PRIME Project to simplify processes

By Brian Zinchuk Pipeline News Estevan – More than 30 people attended a public information session in Estevan explaining the opening stages of the PRIME project being enacted by the Saskatchewan Ministry of Energy and Resources.

PRIME stands for Process Renewal and Infrastructure Management Enhancements, and is a sweeping overhaul of the business processes used by the petroleum industry to interact with the provincial government. The multi-year program will have many facets, but the one with the most impact is Saskatchewan joining with the Petroleum Registry of Alberta. That was the main focus of two meetings held in early July, one in Estevan on July 7, followed by a Regina session on July 8.

Approximately 75 people attended the Regina session. A third session was held in Calgary on July 22 following calls for a meeting to be held there.

“This is definitely going to change your world of production and revenue accounting,” noted Darwin Roske, director of petroleum statistics and one of the speakers. He noted the Registry has a high degree of

industry support, and will offer many benefits.

He noted a long list of paper forms and reports currently in place. “In three to five years, those will be going the way of the Dodo bird.”

Volumetrics, the ‘guts of the Registry,’ will replace numerous reports.

“Saskatchewan is moving to a whole new methodology for valuing natural gas for royalty/tax purposes,” he said. “That is going to save you a lot of work.”

The information in the Registry becomes the data of record.

Those present were shown onscreen how the Registry works, with examples of various forms of data entry provided. A new well was created in the Registry as an example.

“When putting a new well on production, you have to have a facility to link it to before it can be set up,” said Pat Pearce,” as she performed the demonstration.

She pointed out that some information and processes currently used in Saskatchewan would change, such as the method of identifying wells and facilities. ɸ Page A6

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PIPELINE NEWS August 2010

Keystone to boom in Sask., but not this year News proximately 529 kilometres of new pipeline and re By Geoff Lee lated facilities in Alberta and Saskatchewan.

Pipeline News The new pipeline will include eight pumping Calgary –Don’t count your chickens before they stations in Canada with an initial capacity to transhatch.

Saskatchewan communities counting on an eco- port 700,000 barrels per day of crude, expandable to nomic windfall from the construction of TransCan- 900,000 bbls per day.

The Canadian link will complete the entire 2,673 ada’s Gulf Coast expansion oil pipeline will have to wait until mid 2011 at the earliest for opportunity to kilometre 36-inch Keystone pipeline system.

The Gulf Coast expansion will boost the capacknock – but the wait should be worth it.

The $1.7 billion Canadian leg of the pipeline ity of the Keystone system from 590,000 bbls per (also called the Keystone XL) from Hardisty, Al- day to approximately 1.1 million bbls a day of crude berta to Moncy, Sask. at the U.S. Montana border from Alberta markets via Hardisty to the Texas Gulf Coast. will be part of the final The typical sequence stage of the pipeline exof pipeline construction pansion to be built. activities includes clearThe National Enering and grading right of gy Board of Canada apways, stringing the pipe, proved the construction welding and inspection, of the Canadian portion ditching, coating and of the Gulf Coast exinstalling pipe, backfillpansion in March, but ing and final cleanup, no work is going on in and right of way reclaCanada or the United mation.

States at the present “We are going to time. have hundreds of con“We are waiting for tractors working on the U.S. Department of the project,” said Terry State (better known as Cunha a TransCanada the State Department) spokesperson in Calto give us approval with gary. construction of the “They are going to Keystone Gulf Coast end up staying in hotels expansion,” said Terry and they are going to be Cunha, a TransCanada shopping at stores and spokesperson in Caleating in restaurants. gary.

“There is going to “We want to make The Gulf Coast expansion of the Keystone pipesure the entire project line also called the Keystone XL will bring eco- be a definite positive has been approved be- nomic beneÀts to Alberta and Saskatchewan impact for all the communities that are along fore we start building communities along the right of way.

Image courtesy TransCanada that right of way on the the Canadian portion.” project. As soon as the “It’s great to build project begins, they will to the border, but if you can’t get past the border, there is nowhere for that start seeing an economic benefit for them.”

TransCanada will also purchase electrical power oil to go.

“The process we have with the Department of from local suppliers to run the pump stations in AlState is still on schedule. We are hoping to get that berta and Saskatchewan and pay additional tax revapproval from them before the end of the year, so enues annually to applicable counties and municiwe can begin the construction of that Gulf Coast palities.

TransCanada celebrated the first commercial expansion in the first part of 2011.

“They closed their public comment period on delivery of Alberta oil to U.S. Midwest markets to July 2, and they had extended that period by 90 days Wood River and Patoka, Illinois on June 30, marking the completion of the first phase of the US$12 so we are hoping to have a decision very soon.” ɸ Page A7 The project will involve the construction of ap- billion Keystone pipeline system.

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Notes

Crescent Point buys Ryland Crescent Point Energy Corp. has entered into an arrangement agreement to complete the acquisition of junior oil producer Ryland Oil Corporation with assets primarily in the Flat Lake area of southeastern Saskatchewan.

Ryland is Crescent Point's working interest partner in the Flat Lake Bakken play and controls more than 475 net sections of land, the majority in southeast Saskatchewan.

Total consideration is approximately $121.8 million, including an estimated $26.4 million of Ryland net debt at closing time.

Ryland has more than 475 net sections of land, almost entirely undeveloped, including more than 50 net sections of land in North Dakota, more than 129 (60.9 net) internally identified drilling locations, production of approximately 150 bbls of oil equivalent per day, nearly all from the Flat Lake Bakken play; and approximately $85 million in tax pools.

The arrangement is expected to close on or before Aug. 20.

Third Evesham Dina well produces Tuscany Energy Ltd. announces that the company's third horizontal Dina oil well, Tuscany and others at Evesham HZ 91/15-16-39-27 W3M commenced production on July 12 and is currently producing at a rate of 95 boepd with a six per cent water cut.

This is the third successful horizontal well drilled on this 1,040 Dina acre prospect. The current development plan includes drilling at least two more horizontal Dina wells in 2010 with the next horizontal well scheduled for later in the third quarter of 2010. Tuscany is the operator and holds a 60 per cent working interest in the lands.

Tuscany said it plans to focus its efforts on its Saskatchewan production, development and exploration opportunities. In addition to its existing Dina and Sparky properties at Evesham and Macklin, Tuscany has acquired an interest in 1,934 acres (650 net) on a developing Bird Bear oil play, in the Evesham-Senlac area.

Briefs courtesy Nickle’s Daily Oil Bulletin

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EDITORIAL

PIPELINE NEWS August 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

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Editorial Highways, pipelines and rail are our arteries Sitting on a beach near a mosquito-infested Manitoba Lake, one comes across a most curious point of interest for a story Pipeline News worked on this month – the movement to twin Highways 39 and 6, from the U.S. border to Regina. Those who have supported it have been patient for long time, but are growing frustrated with the number of head-on fatal collisions that occur on the busy highway that connects the two oilfield service centres of southeast Saskatchewan. Often it’s a small vehicle versus a semi, and it’s not hard to figure out who loses in that scenario.

The lady on the beach said that her family’s property, just south of Regina, was surveyed for just such an expansion of the highway. But she was a child at the time, and that was 50 years ago.

That’s the time frame we see on native land claims – generational waits. It will likely be another generation before we see serious action on that front.

This edition of Pipeline News focused on transportation corridors – pipelines, highways, and rail. In such a large, scarcely-populated province, we take our transportation seriously. More specifically, we need that infrastructure to exploit our oil and gas fields and get it to market. If there’s no pipe in the ground, or road for truck to haul it on, that oil might as well stay in the ground. It’s useless and worthless without transportation links. They are the arteries for our economy’s circulatory system.

A lot of these corridors zip right through Saskatchewan, like the Enbridge and TransCanada mainline systems. Curiously, most of the important ones all pass by or intersect very close to White City. Highway 1, Canadian Pacific’s mainline, Enbridge’s mainline, and TransCanada’s mainline all converge near White City, yet most people wouldn’t realize it. The green space between the golf course and the main part of White City is actually the Enbridge right-of-way.

It’s a good thing the general public can in large part

forget about these superhighways coursing under our prairie. It’s a testament to decades of quality workmanship that these pipeline networks can be counted on day in and day out to deliver safe, efficient transportation of our products.

The weakest link has been the road system. To the general public, if it’s not gravel, it’s a paved highway, even if it’s more of a thin membrane roadway than several inches of thick asphalt. The increased traffic, particularly on the roads of the heavy oil northwest, has pounded these roads mercilessly.

About nine years ago, the highways ministry spent the summer pouring copious amounts of gravel on Highway 40 near Cut Knife to build up that road. They then poured a bit of oil on it and called it a highway.

Now Highway 40 is a construction zone again, this time with real asphalt being laid, produced by three plants, no less. Maybe if a proper job had been done the first time, it wouldn’t have been needed now. The saying “A cheap man pays twice,” seems to ring true here.

That being said, kudos to the provincial government for the strong support our highways have seen in recent years. It’s good that Highway 40 is getting the treatment Highway 13, which should be called the Bakken Expressway between Stoughton and Redvers, has seen.

One feels a lot safer negotiating that highway with all the big trucks without keeping an eye out for potholes, too.

It’s also good to see movement on the establishment of high load corridors. However, southeast Saskatchewan needs one. The route to get a high load from Saskarc Industries in Oxbow to Fort McMurray is more crooked than a dog’s hind leg after it’s been run over by a semi.

This province will live and die by its transportation infrastructure. We’re an exporter, which means we need ways to get our product out of our borders. Allow it to crumble, and our economy will, too.

PIPELINE NEWS August 2010

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Opinion Secret squirrel business in the oilpatch From the top of the pile Brian Zinchuk

There are times when I think I have a good idea what’s going on, and then I realize, I didn’t have a clue. For instance, I was never once offered a joint in high school, not even a cigarette, yet like every other high school, mine was rife with both.

So when it comes to some of the secrecy in the oilpatch, I confess to being a little clueless as to what it’s all about.

After all, it’s pretty hard to hide a drilling rig on the Saskatchewan prairie.

Yet I’ve been on several leases by now that were considered ‘tight holes.’ No one is allowed to talk about any details about the hole – formation, direction, depth. Millions of dollars are on the line.

I had a small insight into the process speaking to a senior landman the other day. Seismic was done on some property, and based on the interpretation of the seismic surveys, land was purchased. As soon as it was possible to drill on that land, a well was drilled and completed. Presumably, it would have been a ‘tight hole.’ Based on the knowledge obtained with that well, further land was acquired nearby in

the next sale.

This would be standard procedure for most, if not all, exploratory companies.

Because Saskatchewan’s land sales occur every two months, and are posted several weeks before the actual sale, there’s only a small window of a few weeks to act on new information. Therefore you have to act quickly, and don’t want a competitor to come in and swoop up the land across the road based on information you developed.

I will grant there is logic to that.

However, after a certain period of time, a large portion of all geological data gathered in Saskatchewan becomes public domain. Drill cuttings, core samples, well logs – all are obtainable from the Saskatchewan Subsurface Geological Laboratory in Regina. What doesn’t end up there, however, is the seismic survey data.

Based on some research at the core lab, well bulletins, rig locator data, and mark-one eyeballs, it’s not too hard to figure out who is doing what where.

So forgive me for my naiveté, but I still can’t figure out how this is such a big secret.

I mentioned this to a service rig consultant once.

He was working on a tight hole, and I queried just how tight it could be, given that information. As an example, he explained that it’s not uncommon for additional packers and tubulars to be brought out to a site, more than needed, to help mask what the true depth is of that hole, or exactly what is happening downhole, should someone with a long camera lens decide to have a look-see. In that case, I was allowed to take photos of the service company provider I was

Zone in to the No-Zone Don’t hang out in the No-Zone. That’s safety slogan in use by the Alberta Motor Transport Association representing that province’s trucking industry.

These are also words to the wise for all motorists in Saskatchewan who share the road with large commercial trucks.

I found that out through personal experience that driving in a blind spot of a truck, referred to as the No-Zone, is an accident waiting to happen for both parties.

Ironically, I was on my way to a driver’s appreciation day at the Vermilion Vehicle Inspection Station when I discovered the potentials perils of the No-Zone.

A fuel carrying oilpatch truck began to move into my lane in the City of Lloydminster, forcing me to slam on the brakes, lean on the horn and swerve into a third lane without looking to avoid being crushed as I surely would be been. The truck began to shift into my lane when my own vehicle was just slightly behind the cab.

At the Vehicle Inspection Station where I reported the incident – where the offending truck driver also pulled

in for the driver appreciation day – the investigating inspector told me the driver heard my horn but didn’t see me.

I gave the driver the benefit of the doubt after scanning the No-Zone brochure and asking myself why would that driver want to crash into me with a loaded tank of fuel?

My eyebrows twitched when I read that more than 200,000 crashes involving at least one passenger car and one large truck happen every year.

It also states that in 60 per cent of all fatal crashes involving autos and big trucks, the auto driver contributed to the cause of the crash.

The good news is most of these crashes can be avoided if motorists like myself knew more about the limitations of trucks and how to steer clear of unsafe situations.

Truck carriers who aspire to be the safer can also apply to qualify for the Partners in Compliance or PIC safety pro-

covering, but not the service rig itself.

That goes with my theory about news photography – a big lens will get you in, or get you out, real quick.

If we think secrecy is taken seriously here, we’ve got nothing on China. In the July 5 Globe and Mail, they reported a Chinese-born but naturalized U.S.citizen was sentenced to eight years in prison for gathering data on the Chinese oil industry in a case that highlights the government's use of vague secrets laws to restrict business information.

“In pronouncing Xue Feng guilty of spying and collecting state secrets, the Beijing No. 1 Intermediate People's Court said his actions endangered our country's national security.

“Its verdict said Mr. Xue received documents on geological conditions of onshore oil wells and a data base that gave the coordinates of more than 30,000 oil and gas wells belonging to China National Petroleum Corporation and listed subsidiary PetroChina Ltd. That information, it said, was sold to IHS Energy, the U.S. consultancy Mr. Xue worked for and now known as IHS Inc.” Long before being sentenced, however, Xue was tortured during interrogation after his 2007 arrest, the Globe reported.

Xue, arguing in his own defence, noted, that what he compiled, “is data that the oil sector in countries around the world make public.”

When it comes to being secretive about oil wells, Canadians apparently have nothing on the Chinese.

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

Lee Side of Lloyd Geoff Lee

gram recognized in Alberta as the gold standard for trucking safety.

Regardless of who is behind the wheel of a truck, I am staying out of the No-Zone whenever I can now that I know where the blind spots are for truck drivers.

I am also adding my voice to those who are advocating Alberta and Saskatchewan move forward quickly to construct a Highway 16 bypass of Lloydminster and leave the main thoroughfares to the traveling public.

Adding to the traffic hazards in Lloydminster is the ongoing construction of Highway 16 at the west end of the city.

Until the work is done, I am adding that to my personal No-Zone list as well.

IF YOU ARE INVOLVED WITH THE CLEAN UP OF THE GULF COAST OIL SPILL - WE WOULD LIKE TO HEAR YOUR STORY. 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 August 2010

Registry can be accessed from anywhere

Pat Pearce provides a demonstration of how the web-based Petroleum Registry of Alberta works.

ɺ Page A2 While a certain amount of embedded meaning is currently contained in the Saskatchewan facility code, new facility codes set up in the Registry will be longer and part of the code will simply be a number with no embedded meaning. Saskatchewan will also be adopting the Alberta methodology of identifying a well location, which will provide standardization benefits for the industry.

In another example, Pearce noted operator changes for facilities will have to be accepted or declined by the new operator. Once accepted, it goes on to the ministry.

Most production accounting systems will be able to upload files into the Registry via a

batch upload. You will be told if it is successful, or if there are warnings.

“We’ve got data entry once. Inventories roll forward,” Pearce said.

“I think you will embrace it once you see it and get to work with it,” she told the Estevan audience.

The design for the Registry was completed in May, and development work has already commenced, hopefully to be done by the summer of 2011. The goal is to go live in the fall of 2011.

Legacy systems will still remain for dealing with some data. For example: submitting amendments for “preRegistry periods” will be done using the old forms. There is expected to be a parallel process

for two years.

Ross Weaver, industry manager from the Registry’s management team, explained the Registry was a joint, strategic organization of government and industry. “Truly this is a government and industry collaborative initiative. I work for you and the rest of the industry,” he said.

“We’re here to help industry get ready for the Registry and to help get the Registry ready for industry.”

He noted there are approximately 240 Saskatchewan-only companies. “This will be a big change,” he said, “but we are committed to helping you make that change efficiently and effectively.” For the approximately 160 companies that work in both

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Saskatchewan and Alberta, the Registry will be very similar to what they already deal with in Alberta.

Weaver noted in addition to new well and facility identifications, there will be new royalty taxpayer functionality. A new Saskatchewan invoicing process for royalties and taxes will be incorporated, moving away from the system of estimates and reconciliation.

The Registry has 20,000 registered users, and is secure, with only authorized access allowed. Built-in edits prevent common errors.

The Registry also includes auto-population of data, and tools such as non-compliance and completeness reports that will help users “do it once and do it right.”

Users of the Registry can also be assigned specific access limitations, so that engineers, for instance, might be able to access data, but not modify it. There are also limits for confidential wells.

There are over 100 training modules for the Registry. Each producing company is expected to have a “change leader,” to head up their adoption of the Registry.

Change leader meetings are planned, and there will be targeted support as required.

At the conclusion of the meeting, Jeff Ritter, director of the PRIME project, said, “It was an engaged crowd.”

“Our focus was to do this for Saskatchewan companies. We wanted to do a good job communicating this information for Saskatchewan only producers and make sure we didn’t forget the companies that operate only in Saskatchewan.”

Darcy Walker, who heads up Outback Energy, a small junior producer based in Oxbow, said, “It simplifies the production accounting end.”

He personally does his work with a mobile office, and then has to go home and fax the information at night. “This will simplify it quite a bit,” he explained. “I will be able to do it anywhere.”

PIPELINE NEWS August 2010

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TransCanada reaches toward Gulf Coast ɺ Page A3 “This represents a significant milestone in the overall development of the Keystone pipeline project,” said Hal Kvisle, TransCanada president and chief executive officer in a news release.

“Looking forward, Keystone will play an important role in linking a secure and growing supply of Canadian crude oil with the largest refining markets in the United States, significantly improving North American energy security.”

As for economic spinoffs Kvisle said, “The pipeline will also continue to have a significant impact on the North American economy through the thousands of manufacturing and construction jobs it is creating, and the millions of dollars in tax revenues that will be paid annually to state and local authorities.

“Recently, an independent economic study found that the Keystone Gulf Coast expansion alone would inject more than US$20 billion into the U.S. economy and create 119,000 personyears of employment.”

In Canada, the first phase of building the Keystone pipeline involved the conversion of approximately 864 km of existing natural gas pipeline in Saskatchewan and Manitoba to carry crude oil.

That work generated

hundreds of jobs and economic spinoffs with the installation of nearly 373 km of new 30-inch pipeline, 16 pump stations and the Keystone Hardisty Terminal.

The U.S. portion of the Keystone includes 1,744 km of 30-inch pipeline from Manitoba south through North Dakota, South Dakota, Nebraska and Kansas and east to Missouri and Illinois to the historic first delivery points.

“Having that first part operational on June 30 was a very exciting day here in Calgary,” said Cunha.

“We were able to get the project done on time and on budget, and we looking forward to proceeding on the next phase of the project.

Previously approved construction is ongoing from Steele City, Nebraska, to Cushing, Oklahoma. TransCanada expects that work to be complete before the end of the year and be operational in the first quarter of 2011.

The next key sections from Cushing to existing terminals at the Gulf Coast to serve the Port Arthur, Texas, marketplace, and the section through Montana and South Dakota to Nebraska await U.S. government approval.

“We want to get to the Gulf Coast first. The

last stage will be the part from Hardisty to Steele City, Nebraska,” said Cunha who notes the project is strongly supported by Montana governor Brian Schweitzer.

Schweitzer hosted Canadian premiers at the latest Western Governors’ Association annual meeting in Whitefish, June 27-29 with some joint energy issues on the table.

“He has been very supportive of the project and the benefits it has,” said Cunha. “He’s endorsed it. We are just waiting for that one last piece of U.S. federal approval so that we can build the pipeline next year.”

TransCanada is also in discussion with producers in Montana and North Dakota who want to ship crude via potential on-ramps to the Keystone expansion pipeline through Montana.

“Those discussions are still ongoing and nothing has been finalized at this time,” said Cunha.

“We have 83 per cent capacity on our line which leaves 17 per cent available for spot market needs. There is opportunity for additional capacity to go on the line.”

The binding shipment contracts include commitments of 910,000 barrels per day for an average term of 18 years.

Construction of TransCanada’s Gulf Coast expansion of the Keystone pipeline in Canada from the Hardisty Terminal in Alberta to Monchy, Saskatchewan is not likely to proceed until mid-2011 at the earliest.

Photo courtesy TransCanada

TransCanada delivered its Àrst commercial shipment of Alberta crude to U.S. Midwest markets at Wood River and Patoka, Illinois on June 30 from the Hartford Illinois pump station.

Photo courtesy TransCanada

A8

PIPELINE NEWS August 2010

Rouse clutches in high demand

By Brian Zinchuk Weyburn – Imagine every time you wanted to change speeds on your car, you stopped, tore apart the engine, changed the configuration, and put it back together again. Each time it would take several men several hours.

That’s the way drilling rigs have done it for years when it comes to adjusting pump capacity.

However, Rouse Industries, a Weyburn-based firm, is doing something novel. Instead of swapping out liners, the driller can simply switch gears with the push of a button.

It’s part of a new product line of clutches Rouse has been developing. The company has become well known with the clutches used on drilling rigs, so much so that a large number of rigs in southeast Saskatchewan now have their products.

The Rouse clutch was developed by John Rouse in collaboration with another firm that used to manufacture them. When that firm ran into financial difficulties, the Rouse family bought it out and took production of the product in house. Now the family, made up of John, Dennice, and their sons Dustin and Codie, own and operate the highly specialized firm.

Dustin, 26, handles sales, while much of the

hands on work, including assembly and service, is performed by Codie, 23.

“We build clutch boxes and gear boxes for the oil and gas industries,” explained Codie.

The applications are primarily in drilling rigs and pipeline stations, typically on mud pump drives.

Their primary product is the Rouse two speed clutch.

“Right now, we’re on the verge of coming out with our new improved MPD-2.1, which is a two-speed planetary transmission for drilling rig mud pumps,” Codie explained.

They are currently making changes to the present design, mostly in the way of simplification.

“Now you basically bolt it on, and your package is complete,” he said.

The product is expected in the late summer or early fall.

They source their parts all the way from Victoria and Penticton, B.C. to Austria. “We try to use high-end, top of the line suppliers,” Codie said, explaining their products have a very demanding cycle.

“Oil companies are requiring more and more down hole pressure, causing higher demand on equipment.”

Before, typically everyone had a singlespeed clutch.

“Only one oth-

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er company makes a 2-speed clutch for this application in the world.

We also sell and service them,” he said.

There is also a wet hoisting clutch for drilling rigs in prototype stage right now. It’s probably six months out, to be expected in early 2011. For the new hoisting clutch, it will use similar, proven technology to their mud pump clutches. “We’ve got guys lined up and waiting. There’s several local guys who want to try it.

They’re not happy with what they have,” he said.

“We have intentions on making it to be able to retrofit the old units.”

“We’re revising our direct hydraulic drive clutch with similar updates, seeking to simplify things and make it a better package,” Codie said.

“We have an engineer on staff in Waterloo, Ontario named Sasha Tesic.”

Asked how someone so young can be so actively involved in the design of such a crucial piece of oilfield equipment, Codie responded, “I come up with concepts.

I’m more of a hands-on engineer. John’s got 30 years of hands on, and Sasha’s got the book experience. We all have different ideas, and often come up with a combination of two or three.”

“They all come from different perspectives,” noted Dustin. His role is primarily handling the paperwork and sales. In-

Codie Rouse, left, and his brother Dustin, handle the hands on and sales work respectively for Rouse Industries.

deed, in their new office as part of the Southern Industrial and Truck operation, Dustin ended up displacing his father, John, for the big office, because John is typically found doing hands-on work in the shop and acting as shop foreman, while Dustin in handling paperwork.

“I’m the paper guy.

I do purchasing, invoicing and procurement,”

he said.

Dustin is also involved with the administration and sales of sister company Southern Industrial.

Describing the genesis of their products, Dustin noted John wasn’t happy with what was out there, and collaborated on the first unit. It ended up being installed in a Panther Drilling rig.

It takes about a

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

week to assemble a unit, depending on the model, and they have a substantial backlog due to high demand. It’s getting to the point where they’re going to have to start hiring more people.

What makes their product better than others on the market? “Our size, mainly,” Codie said.

Bakken zone drilling usually requires 1,000 horsepower versus 800 hp. Their units are substantially more compact in size for that horsepower requirement and make installation of these large engines possible with less upfront cost and labour.

The MPD-2 also makes life a lot easier.

“In the past you had to change the liners in the pump,” Dustin explained. That meant keeping and inventory of liners, down time to change them out, and possible finger pinches.

It is a backbreaking job, he said. With their twospeed units, “Flick a switch, grab a gear, and go.

“Everyone wants to go faster, faster, faster.

These are purpose-built for that application.

We’re building packages to do a complete hole.”

PIPELINE NEWS August 2010

Southern Industrial’s expansion needs expansion

By Brian Zinchuk Weyburn – They moved into their greatly enlarged facility this spring, and already, Southern Industrial & Truck Ltd. could use a little more space, at least for parts.

Southern Industrial is a family owned company run by the Rouses.

John and Dennice Rouse are the owners.Their sons Codie, 23, and Dustin, 26, are both heavily involved, particularly in their other venture, Rouse Industries. They also have a third venture, JR Wellsite Power Ltd., a rental operation.

Between the three ventures, their operations were scattered across three locations around Weyburn. The new location, southeast of the intersection of Highways 39 and 13, provides a lot more room, as well as a lot more exposure. They began moving in back in January, but will be holding their grand opening on Aug. 18.

Along the way, the company has picked up two Weybex Awards in June for New or Expanded Business and Business of the Year.

The bi-annual awards celebrate business excellence in Weyburn, and are sponsored by the

Weyburn Chamber of Commerce.

“We started [construction] in April or May of last year,” Dennice said. “We felt we made pretty good time.

We still need to do a few minor finishing touches.”

The new shop is 36,000 sq.-ft., with 10 bays on the truck shop side, another six on the rig shop side, and an area for Rouse Industries in the back.

Their former truck shop was on the northeast corner of the city, and was so tight for space, they hardly had room to move. The oilfield side was on the opposite end of the city, and parts for Rouse Industries were at the Rouse home.

The company now employs approximately 42 people, plus some summer students.

The new facility was in part driven by their recent status as an associate dealer for Maxim International Trucks. With that, they now carry grain and cattle trailers.

Dennice said their new location, with substantially greater visibility, has worked out really well. “It’s brought opportunity. We’ve been here for 21 years, and now all of as sudden, here we are,” she said.

The new facility has also allowed the company to get into parts buying groups. “We’re a distributor now for Weatherhead,” she said.

It’s a fittings, hose and pump provider. They used to farm that out, but have now brought the capability in house.

“We’re out of parts room, seriously. We’re looking at putting on another parts warehouse,” she said. “There’s lot of opportunity, so you want to take advantage of it.”

Weyburn is a unique situation for freight, she said. “For oilfield, you won’t sell it if you don’t have it. Inevitably, it’s a breakdown at 3 a.m. at 30 below.”

She said they need a substantial inventory to deal with those situations. “Most everyone needs it yesterday.

“We sell Cat, Cummins, and Detroit. You sell what people want,” added Dennice.

“We built the building with the capability of further development,” Codie said. They can potentially add a parts wing on the back, and then another set of service bays beyond that if needed.

Regarding the Weybex awards, Dustin said, “Having the community recognize us is something important.”

The Rouse family of Codie, left, Dustin, Dennice and John own and operate Southern Industrial and Truck Ltd., Rouse industries, and JR Wellsite Power Ltd. In front of them is a Rouse clutch, used on drilling rigs that they assemble in Weyburn.

Dennice said, “It’s quite an honour. The people understand the challenges, the highs and the lows.”

“The boys were just little when we started the shop. You keep your head down, and do what you do, providing good service to customers. "

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306-458-2988 Providing engines and clutches for drilling rigs is an important part of the business for Southern Industrial. Here, they are modifying a pumphouse for Panther Drilling’s Rig 3.

A9

A10

PIPELINE NEWS August 2010

Panther Drilling’s Rig 3 comes together quickly

Ryland Girardin, roughneck, left, and Ron Kopec, driller, adjust counterweights on the derrick of Panther Rig 3.

Welder Sheldon Martindale of Bengough replaces a hinge on the monkey board of Panther Rig 3

By Brian Zinchuk

both jackknife doubles, pulling conventional 9.5 m lengths of pipe.

Weyburn – This time “We’re eliminating around, putting together a new rig took a lot less 30 per cent of drill pipe time for Panther Drill- connection, reducing connection times. Suring of Weyburn.

The locally-owned vey time should hopedrilling company is fully be lowered by 30 completing its third rig, per cent,” he explained.

In one example, joining a wave of rig additions for small drillers he said, a Bakken well in southeast Saskatche- took 128 hours to drill wan. However, Panther and 28 hours of survey is doing something dif- time. A second well ferent with their new took 130 hours to drill, rig, compared to their and 30 hours of survey time. “If we can save competitors.

Panther Rig 3 will eight to 10 hours in be a jackknife rig, but survey time, and about with a triple derrick four hours in connecpulling double lengths tions, we can cut half of drill pipe. Instead of a day off the whole. It using the standard 9.5 makes us more marketm lengths, Rig 3 will able,” Kopec said.

Additionally, using pull two joints of 14 m (43-ft.) length pipe. longer drill pipe elimiThat length of pipe is nates one load of pipe commonly used by su- on each move. It will save customers money, per-singles.

“This is out of the hauling four tubs innorm around here,” stead of five.

Kopec said their explained Jim Kopec, general manager. Pan- style of rigs is meant ther Rigs 1 and 2 are for deeper wells. “A lot of our work is along the U.S. border, with the deeper Bakken zones.”

“Rig 3 is going to be rated at 4,500 m (vertical). That’s lots for down here.”

As for the rig’s genesis, he explained, “We started looking at it in the fall of 2008.”

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an economical time to build a rig,” he noted.

Indeed, it took much less time than their previous rigs to put together. “This rig, in four months from start to finish, we’ll be drilling.”

It took a lot longer to build the first two rigs, at about a year a piece.

Some of the rig was built in Calgary, some in Nisku, and some in Weyburn. Indeed, the pumphouse could be found getting some modifications at Southern Industrial, in Weyburn. They supplied the engines, transmissions and gen set for the rig.

Stewart Steel and Jerry Mainil Ltd. also have contributed.

The new rig will be going to work for an independent contractor for the first few wells, and then going into a long term contract with “a good client.”

The other two rigs are both on long term relationships with their respective operators.

As for another rig in the future, Kopec said, “We want to see how Rig 3 works out and watch the markets.

Right now, demand for rigs is high.”

Weather has had more of an impact than oil prices, however, according to Kopec. “They have wells they’re committed to.” ɸ Page A11

PIPELINE NEWS August 2010

A11

Close to home attracts local staff ɺ Page A10 “If the market is still there, there is interest in a fourth rig,” he said.

“Right now, our market is the deeper wells, but we can still do shallower ones. We’re trying to make the rig as competitive as we can in southern Saskatchewan.

“The day rates are improving a bit. Every contract is negotiable.

“Staff was a big issue.

We ran an ad in the local paper,” Kopec said There It only took four months to get all the pieces together for Panther Drilling’s Rig 3.

was a lot of interest, he noted, pointing out they are close to home, and the employees know they’ll be working. The result was all fairly local employees for the new rig. It helps the company runs eight hour shifts, with a swing crew, resulting in three weeks on, one week off. “We’ve been fortunate, our rigs have been steady.” he said.

The new rig brings the company’s staff level to about 75 people, up from 51. There will be 21 people manning the new rig, plus some parttimers.

Two Weyburn golf tourneys in August Weyburn – Two oilfield golf tournaments will be taking place on back-to-back weekends in Weyburn in late August.

The first is the Weyburn OTS Men’s Golf Tournament, taking place Aug. 21, at the Weyburn Golf club.

The day starts with breakfast at 7:30 a.m. and a shotgun start at 9 a.m. A steak supper will await the golfers at the end of the day. There will be prizes for all golfers. Carts are included in the entry fee, which is $500 per team.

However, as of July 19, anyone who registers is likely to be put on a waiting list, according to Gerard Rieger, who has been taking registrations.

As of that day, they took in their 40th team registration, filling the tournament. However, it is typical that some people may drop out, allowing for others on the waiting list to be added. “We’ve got 40 teams, and that was our goal,” he said. “As of now, we have the teams we needed.”

The tournament is still looking for more sponsorship, however.

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A12

PIPELINE NEWS August 2010

Several new industrial parks on the east side of Estevan in the RM of Estevan have sprung up in recent years.

RM of Estevan sees increased drilling

By Brian Zinchuk Estevan – Newcomers to Estevan soon learn that while the city may be the service hub of the oilpatch in southeast Saskatchewan, you generally have to drive 30 km or more east, west

or north to find drilling rigs and actual production. While there’s been lots of oil activity in the Estevan region for decades, there wasn’t a lot right next door.

That’s changing this year, with a sharp spike

in drilling permits in the RM of Estevan.

The city of Estevan sits in the approximate centre of the RM of Estevan No. 5. There are coal mines to the south of the city, and a strip of farmland along the U.S.

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Border. It is this southern half of the RM, running along the border, that is seeing the most activity, according to RM Administrator Greg Hoffort and Deputy Reeve Kelly Lefrentz.

“We’ve now got a whole lot of oil interest and drilling,” Lafrentz said.

There were 32 drilling permits in the first half of 2010. That may not seem like a lot compared to some other RMs, but for the RM of Estevan, it’s a huge jump.

Typically, the number of wells drilled would be

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from zero to a few, according to Hoffort.

“Every ten years, interest picks up in the Tableland play,” Lafrentz said.

“We have a whole lot of permits a mile north of the border,” Hoffort noted.

Active drillers in the RM include Molopo, who punched some holes near the airport on the north of Estevan, Cenovus, who is working south of Shand Power Station, Nuloch, in the southwestern corner, along with Crescent Point, Legacy, and PetroBakken all active south of the city and mines. Renegade is also involved. Renegade recently bought Duce Oil, which has a few existing properties in the RM. It may have something to do with 2009 being a “big seismic year” for exploration in the municipality.

Lafrentz said they don’t report their production zones to the RM, but it is likely Bakken and Three Forks they are working on. Most of the activity is “tight hole,” or confidential.

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ago, but had difficulties, Lafrentz said.

The RM of Estevan is now learning to sing from the same choirbook as many of the other RMs with active drilling. They have moved this year to address infrastructure concerns before problems arise.

“It’s hard on infrastructure. We had a meeting with most of the active or going-tobe-active producers in the area,” Lafrentz said.

That meeting occurred in June, presenting the producers with a proposal for a fee structure for a road maintenance agreement. It’s a measure many other RMs have had to bring in in recent years. “There just wasn’t a need before. They weren’t causing a noticeable impact,” he said.

Hoffort explained they want to be proactive, “with what we expect from oil companies and they can expect from us while drilling wells.

“We both know, going in, what’s expected from both sides.

“Right now we are looking at a lot of truck traffic. Because there isn’t the infrastructure in place, most of the oil companies have been great to deal with and are willing to accept responsibility to pay [for repairs]. They’re being good corporate citizens.”

There will be costs.

“Our gravel budget in the south half of the RM is virtually double last year,” Hoffort said.

“On average,for every well that’s drilled, there’s 100 to 150 round trip truckloads of equipment into that well,” Lafrentz said, pointing out that’s just in the development stage, and does not count production.

Lafrentz is in the unique position of being an RM councillor, and the head of a local oilfield trucking company. “I try with my company to set and example, that I am following it,” he said. ɸ Page A13

PIPELINE NEWS August 2010 Dirt work has begun on yet another industrial park east of Estevan, in the RM of Estevan.

A13

Sixty years later, it’s arrived Éş Page A12 The RM of Estevan has a population of about 1,200 people, and it’s growing. In recent years, acreages have popped up all over the RM, particularly north of Estevan. “We have huge acreage development,â€? according to Lafrentz.

At the same time, there has been tremendous growth of industrial parks within the RM. On the west side of Estevan, several oilpatch businesses have set up shop in the RM’s in-

dustrial park, including Packers Plus, Turnbull Excavating, Dart Services, Brett Gedak Welding, and even Lafrentz’s own ďŹ rm, Kelly Lafrentz Trucking.

On the east side of Estevan, it’s not just individual businesses, but whole industrial parts that have sprung up – about a half dozen, running along side the road to the Shand Power Station. Dirtwork just started on the most recent, belonging to a numbered company, on the east side

of the road and north of Highway 39. There are so many, the RM has taken to calling it the “Shand Industrial Area.�

Hoort and Lafrentz point out it is all the work of private developers. The RM is not the developer in any of these parks.

Hoort said there are development-friendly, and have tax incentives. “We’re trying to work with them, to get them established. We’re not trying to hit the home run on the service agreement and land sale. We

want long term, sustainable growth.�

They both mentioned if anyone is interested in setting up shop in one of these parks, they could come to the RM and the municipality will help them out. It’s especially important to clear some projects with the RM ďŹ rst, just in case it may not be an allowed usage, before tying into a property.

That’s come from experience. “A few years ago, were learning on the y, absolutely,â€? Hoort said.

Proposed TransGas pipeline on schedule Regina – The tender has been awarded for TransGas’ summer system expansion project, a new pipeline in southeast Saskatchewan.

Debbie McKague, vice president of market services and system management for TransGas, said, “We are progressing along. “The tender has been awarded mid-June,� she said. “We’re moving along with environmental reviews.�

The proposed pipeline will stretch north from a point near to the town of Alameda to interconnect with an existing TransGas lateral near the town of Whitewood, a total distance of approximately 117 kilometres. The route for the $22 million 10-inch

pipeline has been surveyed and the majority of the required easements have been acquired, the company said in a release.

When operational, the pipeline will have capacity to transport up to 35 TJ/day of natural gas. “This additional capacity will encourage producers in the area to conserve natural gas that may have otherwise been ared. This pipeline will not only enhance take away capacity in the area, it will also ďŹ t very well with TransGas’ commitment to the environment by reducing the amount of CO2 emissions associated with the aring of natural gas that has resulted from the high levels of oil activity in this area

of the province,� the release stated.

The route makes use of existing right of ways for much of the route, with TransGas noting the proposed routing has also been chosen with the environment in mind. The pipeline will cross over 170 parcels of land, of these, 100 parcels already contain TransGas infrastructure. Furthermore, the route will avoid Moose Mountain Provincial Park.

Construction is planned to begin in August, 2010 and the pipeline should be complete and in service by December, 2010. “Things are on target and on schedule,� McKague said.

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PIPELINE NEWS August 2010

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PIPELINE NEWS August 2010

A15

Cameco sees double with emerging China

By Thom Barker for Pipeline News Saskatoon – Saskatoon-based Cameco is so confident about the future of atomic power, it is planning on doubling its uranium production by 2018.

Dubbed “Double U,” the company’s long-term strategy is bolstered by deals announced in June with two of China’s major nuclear power utilities. The first deal is an agreement to supply 23 million pounds of uranium concentrate through 2020 to the China National Nuclear Corporation (CNNC), a stateowned enterprise with seven producing nuclear reactors and 10 more under construction.

“The agreement indicates clearly that we intend to be very active in the world’s fastest growing uranium market,” said Jerry Grandey, Cameco’s CEO. The second deal is a non-binding framework agreement with China Guangdong Nuclear Power Holding Company (CGNPC) committing the two companies to negotiations on longterm uranium purchase agreements. CGNPC is China’s fastest growing nuclear power supplier with plans to have 50,000 megawatts of capacity—15 times SaskPower’s capacity from all sources—by 2020.

Although the two agreements are a shot in the arm for the Saskatchewan uranium industry, they are not part and parcel of the Double U program, explained Lyle Krahn, Cameco’s director of external communications.

“We want to double our uranium production because we see the demand out there and wherever we get our deals from, overall, we still think it’s important to double uranium production to take advantage of the opportunities,” he said.

Cameco is already one of the world’s leading producers of uranium claiming 16 per cent of the global market and almost 480 million pounds of proven and probable reserves from properties in Saskatchewan, the United

States and Kazakhstan.

The company estimates world demand will increase by 250 million pounds over the next 10 years.

But mining is only part of the success story, Krahn said, citing the company’s business model of vertical integration.

“We’re involved in a number of different phases within the cycle,” he explained. “We think that makes a lot of sense because we are a leading uranium producer and supplier around the world and we want to add value as well so when we go to customers we can often make good arrangements with them because we can offer them more services than just the uranium.”

Process In fact, Cameco is involved in virtually every phase of the cycle, from pulling the ore out of the ground to supplying electricity to consumers. In Canada, the cycle starts approximately 620 kilometres north of head office in Saskatoon at McArthur River, the world’s highest grade and most productive uranium mine.

The ore is ground into slurry at the mine, then trucked 80 kilometres to Key Lake for milling. The concentrate is then shipped to the company’s Blind River, Ontario plant where it is refined into uranium trioxide powder (UO3).

The powder is sold inter-

A worker at Cameco’s Port Hope, Ontario uranium conversion facility monitors production of uranium hexaÁuoride (HF6), the form needed to manufacture fuel for light water reactors.

Photo courtesy of Cameco

nationally to conversion plants that turn it into uranium hexafluoride (UF6), the form needed to manufacture fuel for light water reactors.

Cameco also has its own conversion plant in Port Hope, Ontario where they make UF6, as well as uranium dioxide

(UO2) fuel rods to power Canadian-made Candu reactors.

Finally, Cameco is also in the electricity generation business through a limited partnership with Ontario’s Bruce Power. Bruce made headlines and stirred controversy in

Saskatchewan last year with a proposal to build a nuclear power plant in this province. Cameco would be a possible partner and the obvious fuel supplier for such a facility, but the company is taking a wait-and-see attitude.

“I think the Saskatchewan government correctly identified it’s a longer-term horizon for looking at that,” Krahn said. “We really view [Bruce] as our vehicle for investment in Canada, so we’re certainly involved in the discussions as an owner of Bruce Power. As they come up with different scenarios and different opportunities then we’d certainly be there and make a decision whether it’s in the best interest of our shareholders to proceed with that.”

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If Cameco is successful in doubling its uranium production, it would not double that economic impact, but it would provide a significant boost. And Grandey believes success is within reach.

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A16

PIPELINE NEWS August 2010

Truck bypass ¿nally coming to Estevan

By Rose Ditaranto for Pipeline News Estevan – Truck traffic has plagued the city of Estevan for years, disintegrating infrastructure and reeking traffic mayhem. Estevan is slated for a truck bypass, which is nearing its final planning stages.

“The whole purpose was, and this came up a number of years ago, we’ve always had a concern about the number of trucks going through the city that don’t stop, which is at least 750 trucks a day and 95 to a 100 per cent of those don’t stop usually,” said Estevan mayor Gary St. Onge.

Kelly Lafrentz, deputy reeve of the RM of Estevan said the new truck route will operate about a mile north of the city as it exists right now.

“It operates on Fourth Street and goes off on 13th avenue to Sixth Street and back on to the truck route on Souris Avenue and then back onto

Fourth Street and goes east out of Estevan,” Lafrentz described the current truck route.

Lafrentz said the purpose of a truck route in a city is to move heavy truck traffic and dangerous goods around the city efficiently and safely.

“Time is money. If they can cut down the time it takes them to get across Estevan then that’s a good thing for them,” said Lafrentz.

However, the concern of business loss has come to light, but Lafrentz does not deem it threatening.

“If they don’t have to stop, they likely won’t. I don’t think it will have a big effect on city businesses, because people if they want to have a meal then they will come in and have their meal if it’s the right time of day for that, if not they wouldn’t stop anyway,” he said.

Another concern raised by residents and put to bed by officials, was one of noise and safety complaints by Sales: Jeff Wagner Safety & Fire Extinguishers: Morley Forsgren

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those who own acreages near the newly proposed truck route.

“Most of their concerns were not knowing for certain where things will be and how they will be constructed. A big concern was the west end intersection with Highway 39 west, and that is under re-evaluation as of right now.

The location for the new truck route was picked with the minimal amount of disturbance for everyone and where the routing is we think is a good choice because it is the furthest point it can possibly be away from any acreage owners or business owners,” said Lafrentz.

However, he does acknowledge the fact that not everyone will be pleased.

“The point of bothering is a different interpretation for every person,

so you will never please anyone. What they’ve hoped to accomplish here is that we actually please as many people as we possibly can, and I think they are probably going to get done,” said Lafrentz.

As for the completion of the truck route, Lafrentz said construction must be completed by December 2014 in order for the city to receive funding from both levels of government; $17 million a piece.

“I would think land acquisition would start here late this fall and early winter months and once they`ve acquired land and got their final designs I would think it would go to tenure sometime in 2011 and construction to be completed by December of 2014.”

Bert Baxter Trucking reacts Cam Martin, safety co-ordinator for Bert Baxter Transport LTD. in Estevan, says he is on the fence about the proposed project.

“There is a lot of truck traffic, there are a lot of trucks that go through this town everyday. I don’t know what they can do differently other than going out of town, but taking them right out of town might not be the answer,” he said.

By rerouting truckers out of the city, Martin said businesses will suffer.

“I think it will take away business from some of the local businesses, like the Co-op and their delis, the Husky, Petro Pass and the Esso, it’s probably going to hurt them.

“Tourists are going to be the big thing because when they are following someone or see big trucks that have no intention of stopping here they might follow those trucks around on that truck route and avoid the city all together” said Martin.

“Whereas if they come through they might stop to shop, get gas, eat, even myself if I was a tourist and hadn’t been here before I might follow those

trucks around,” he said.

However, Martin did acknowledge that the route will speed up business for out-of-town truck companies, but for his own business it won’t make a difference.

“Probably get them through town a little quicker. They’re not stopping here regardless for anything other than to fuel up because of fuel pricing, but I don’t think it will hurt people that are driving right through and are not stopping, it will probably speed it up for them.

“I don’t think it’s going to bother us because we got to come in here anyway and we don’t get outside business.”

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PIPELINE NEWS August 2010

This articulated dump truck has been painted pink in an effort to raise money for breast cancer research.

A17

Photo submitted

Truck carries message with the load Saskatoon – Pink seems to be catching on.

For the third month in a row, a company has come forward in Saskatchewan having painted some of its hardware pink in an effort to support cancer research.

This month it’s Saskatoon’s Korpan Tractor. They’re turning heads with a new pink articulated dump truck (ADT) while raising awareness and funds for breast cancer research.

“By painting this truck pink, it really stands out from the traditional colours of the construction industry,” said Tyler Korpan.

“More importantly, we wanted to do some charitable work with the Canadian Breast Cancer Foundation.”

The Korpan family was moved to paint the machine pink in support of all affected by breast cancer.

The pink HM300-

2 is highly visible from Korpan Tractor’s busy Saskatoon Idylwyld Drive location. The articulated dump truck (ADT) has raised a great deal of curiosity. Upon learning of the message behind the pink paint, people have expressed their support.

With the pink ADT in its rental fleet, Korpan Tractor has committed to donate proceeds of the rental towards breast cancer research.

Torquay acquisition Torquay Oil Corp. has closed its previously announced acquisition of approximately 125 boepd of oil production in its core area of southeast Saskatchewan along with 100 per cent owned facilities and prospective lands.

Current production comes from the Bakken formation and Torquay has identified up to 13 net additional development drilling locations (two Bakken and 11 Frobisher) on lands associated with the purchase.

The total consideration was $10.2 million, which was paid with ap-

proximately $8.3 million in cash and $1.5 million in Class A shares and warrants.

The effective date for the acquisition was April 1, 2010 and included approximately $400,000 of net revenue accrued to the closing date of July 5, which reduced the total purchase price to approximately $9.8 million.

Part of the proceeds from the recent offering were used to pay the cash portion of the purchase price for the acquisition and the remaining proceeds will be used to fund Torquay’s drilling program on the

lands associated with the acquisition and for other general corporate purposes.

Although the truck currently overlooks Idylwyld traffic, it is bound to see action soon. Regarding its rental, “We have prospects in mind,” said

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A18

PIPELINE NEWS August 2010

Palko grows, goes public

Starting from the left, you can see the solids conditioning pad, centrifuges, insulated waste processing tanks, and new tank farm under construction at the Palko Environmental Ltd. Midale facility.

Midale – What started as a produced water disposal site has grown over the past few years into a company that now includes an additional four Alberta sites offering solid waste and water disposal. More recently, Palko Environmental Ltd., formerly Palko Energy Ltd. landed a listing on

the Toronto Stock Exchange in mid-June.

The name change is in keeping with its expanded offerings and overall expansion. It had a market capitalization of approximately $27 million in mid-July.

The company is headed by Steve Peterson, president, who, along with his immedi-

ate and extended family, has grown the company substantially, combining in June with Deepwell Energy Services Trust, an Alberta firm. Jay B. Simmons is the company’s chairman and CEO. “We evolved from working as plant operators to managing construction expansion, marketing and business development and overseeing daily administration,” explained Kyle Peterson, Saskatchewan area manager at the Midale site.

Deepwell bought into Palko in September, 2008, obtaining 50 per cent equity. In late 2009, Gibson Energy ULC subsequently bought a 39 per cent stake in Deepwell. Now Gibson has expanded its position to hold 39 per cent of the total company, with a $3 million private placement announced July 2.

The Peterson family still has significant ownership.

In early 2010, an arrangement was made with Gibson to be a

single shipper and marketer, leveraging off the companies’ close relationship. It’s a strategic alliance. “We provide custom treating service, supported by Gibson, for our customers on the shipping and marketing of oil,” Steve said.

“The intent was to rebrand the Deepwell facilities in Alberta and call the new company Palko Environmental Ltd.” Deepwell has three oilfield waste facilities at Claresholm, Mayerthorpe and Grand

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Cache, Alta., and one saltwater disposal facility at Rycroft, Alta.

The Midale facility, 17 km north of the town of Midale, now operates with 20 employees, up from five two years ago.

This brings Palko Environmental to 60 employees overall.

“The Midale plant moved to a fully licensed waste processing in July of 2009,” Steve explained. “The combination of the two businesses provides waste handling facilities in both Alberta and Saskatchewan. We provide processing and disposal of oilfield wastes, custom treating and reclaiming of crude oil.”

Kyle explained they have targeted high volume throughput. “We have extremely efficient vac truck unloading. We can unload a vac truck with sweet fluids as quick as five to 10 minutes. Our sour unloading which is fully contained takes no more than 15 to 20 minutes.”

The Midale facility also has a working concrete pad for dealing with solid waste. ɸ Page A19

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A19

PIPELINE NEWS August 2010

Salt water, waste water and solids handling

There’s a constant Áow of trucks in and out of the Palko Environmental Midale facility.

LAMICOIDS

A trucker unloads at the Palko Environmental fa facility north of Midale.

ɺ Page A18 He added that their strong safety program is important to their business.

The Midale plant has expanded significantly over the past two years, now with 30 tanks on site. “We added a new tank farm last week,” Steve said on July 16.

The total capacity is now 16,400 bbl.

Indeed, in mid-July the new tanks were in place and the pipe racks were under construction, along with the completion of the secondary containment.

The Midale location’s business is roughly one third produce salt water, one third waste and frac water handling, and a final third high solid waste.

There’s one disposal well right now, but Steve explained, “There will be a backup well online in a few months. We’re just waiting for approval.”

That well will be offset, and nearby.

Water re-use The company will see a new focus in the near future. “Palko Environmental has intensified its focus on the recycling and reusing of water,” Steve said. “This focus is simply in response to significant increase in

water intensity in the oil and gas industry. We are producing more water as the basin matures, and much of the new fracing and producing technologies are also using more water.

“The oil and gas business has simply become a more water intense industry. And the regulations are not getting any easier. We are committed to keeping ahead of the curve with the application of new technologies and innovations.

“We look at Northern Alberta and British Columbia, where large jobs require enormous amounts of water. We

Quality

believe there are meaningful opportunities to recycle water on site for large frac jobs for example.

“There are numerous examples of applicable technologies. We want to move into that space.

We’re working on it currently,” Steve said.

“While fresh water has historically been an abundantly available, it is rapidly becoming a valuable commodity,” he predicted. “There’s a challenge for water in the oil industry. We see an opportunity to become leaders in both treatment and recovery, as opposed to disposing of it.”

That, in turn, will reduce the reliance on source wells.

“We’re actively exploring the area of water recovery.”

The company is also looking at the Williston Basin and other oil plays.

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A20

PIPELINE NEWS August 2010

At the corner of Highways 13 and 47, the Poplar Tree in will be right beside one of the most intense areas of Bakken development, the ViewÀeld area, south of Stoughton.

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Stoughton – It wasn’t quite finished yet, but the new Poplar Tree Inn hotel in Stoughton opened its doors on June 21.

The 43-room hotel is part of a wave of new hotel building over the past few years in southeast Saskatchewan, joining two new facilities in Weyburn and two in Estevan plus a third announced in June.

“We opened just in time for grad. It was a busy weekend,” said Danielle Hoffman, manager. “We had committed to a date, as a group had reservations,” she said.

As of July 2, the second floor was complete and the third floor was just about finished. The first floor still required some work. However, by August, most of that work should be complete, as well as the parking lot, which was scheduled to be paved in late July.

Additional gravel parking is being prepared on the north side of the property, according to Tom Sangster, the site manager for construction and one of the 17 shareholders in the company, Sangster Group

Lodgings Ltd. He holds the role of vice president.

“We’re going to try to have enough room for 10 semis, for sure,” he said.

The facility includes a breakfast room, featuring standard breakfast fare with a make-your-own waffle iron, a popular feature, according to Hoffman.

At the front door of the hotel is an automated teller machine built into the wall, accessible 24 hours a day.

Each room has 32-inch LCD TVs. “We have microwaves and fridges in every room as well,” Hoffman said.

There is a mix of standard rooms with two queen beds, and deluxe rooms with a king bed and a hide-abed sofa. There is also one suite which has a separate bedroom, table area, and two large flat screen TVs. The staff numbers about 15 employees, and surprisingly, each and every one is female. “All local, believe it or not, and proud to say,” Hoffman said, adding, “I didn’t have any guys apply.”

The hotel is totally independent – not belonging to any chain or outside reservation system. They take reservations through the front desk or hotel website.

Hoffman comes to the business after working with the Boston Pizza chain in Edmonton. “I ran restaurants for 14 years,” she said, noting she was a market general manager for two stores. ɸ Page A21

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PIPELINE NEWS August 2010

A21

Lodging at crossroads of the Bakken

A standard room has two queen beds, 32-inch LCD TV, microwave and fridge.

FOR SALE - WORKSHOP Danielle Hoffman is the manager of the Poplar Tree Inn.

ɺ Page A20 She and her husband moved to Weyburn twoand-a-half years ago.

“I wanted something a little more simple, not so hectic,” she said.

Hoffman worked at a few different jobs before landing the hotel manager posting. She has family in the area.

Her husband is an iron worker and welder, and sometimes works up in the Fort McMurray area when he’s not at work in Stoughton.

“If you asked me when I moved if I would run a hotel in Stoughton, I would have said, ‘Hell no,’ but look at me now.

“I’m very lucky to have fallen into this opportunity to work with

them,” Hoffman said. “I think the hotel is an excellent thing to come to Stoughton. It will generate more business for businesses in Stoughton.

The ownership of the hotel is local including former residents, according to Sangster. Harry Jedlic, the architect for the project, is also one of the shareholders.

The target market is the oilpatch, particularly the service side. It will also be a benefit for hunters and tourists, as well as special occasions like weddings.

“We’re very happy.

It’s a nice looking hotel.

We’re quite pleased and the response has been quite favourable,” Sangster said.

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A22

PIPELINE NEWS August 2010

No Àipping of companies here In the current era when junior oil producers are bought, recapitalized, go through several rounds of mergers, then are sold off again in the space of a couple years, Zargon Energy Trust is an anomaly. The company is stable. If there were ever a proverbial tortoise and hare race, they would be betting on being the tortoise – the steady performer.

Craig Hansen is the president and CEO of Zargon. The company has been around since 1993. In that time, it has

“

raised $150 million, and distributed $250 million.

Hansen really likes the trust form of company, and they will be retaining that form right until the deadline at the end of this year, right to “The last second,” he said.

“We’re a trust. At the end of the year, we’ll become a corporation.”

At that time, the name will be changed to Zargon Oil and Gas. “The trust structure was outstanding. That was wonderful. It’s kind of a niche we’re working.

Those are very good business plans.

We just have a different one

”

- Craig Hansen

Craig Hansen, president and CEO of Zargon Energy Trust.

Photo courtesy Zargon’s website

OilÀeld, Industrial, Commercial

We’ve had good returns for people,” he said.

Historically, the trust has been distributing about 50 per cent of cash flow. That will drop to around 35 per cent as a corporation, he forecast.

As of early July, the TSX-listed trust had a market capitalization of about $500 million, according to Hansen, who has been the company’s CEO since the start.

As for the building and flipping of companies, Hansen said, “Those are very good business plans. We just have a different one. A good strong vehicle, we just want to keep doing it. It’s been a great place to work,” he said.

Hansen noted there are new government regulations coming in, alluding to venting and flaring, and said they

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have some catching up to do on some assets they acquired a few years ago.

But basically, they have no issue with the new regulations. “We have a process of making them better,” he said.

The company has recently finished drilling three wells near Steelman, and has three wells and one re-entry slated for Elswick, south of Weyburn. The company has drilled about 25.7 net wells in 2009, 35.9 net wells in 2008, and 46.9 net wells in 2007.

“Basically, we have one rig, and we keep it busy on a regular basis,” he explained.

Zargon has 3,000 boepd production in the Williston Basin, with a total production around 10,000 boepd. “Kind of the stuff people don’t like,” he described. “We work in the areas that aren’t high profit. We take assets and try to get a few more barrels and reserves.”

“We’re a really different model.”

“We’re pretty straightforward. We’re the conventional side – the ‘old zones' – Midale, Frobisher. We don’t have many Bakken lands,” he said.

“We have a little bit of stuff across the [U.S.] border,” he added.

In Alberta, the company is working on chemical floods. They pay a lot of attention to geotechnical reservoir engineering, he said.

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PIPELINE NEWS August 2010

A23

Marshmallow! I mean, fore!

A foursome of golfers makes their way down the fairway.

Monda Dukart of Renegade Petroleum brings it back from the edge of the fairway.

Nikki Svedahl of Panther drilling celebrates a successful putt.

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Oh, the agony! Myrna Gates misses her putt.

Estevan – The Estevan Oilwomen’s Golf Tournament on July 16 Hayley Racicot lines up her putt while Monda had to compete with a Woodrim observes. country music competition in Craven, resulting in numbers just shy of capacity.

The total number of golfers came in at 128, according to Nicole Miller of TS&M SupArtiÀcial Lift Systems ply, one of the commitPhone: 637-6055 Fax: 636-2606 tee members. “Craven 400 Kensington Ave., Estevan stole some of our golf® ers,” she said, but added it allowed some new people to take part.

Proudly made in Canada The annual event took place at the Estevan Woodlawn Golf Club.

To determine the winners, it was a draw – literally. Instead of counting strokes, they drew cards out of a pail.

Carla Friess, Tammy Willmar Waste Management Facility Hunter, Kim Greening Location - 11-36-5-4-W2 and Leanne Fleck were the winners.

• Disposal “We did it a little • Waste Processing differently this year,” • Hot and Cold Fresh Water noted Crystal Wilson of Wil-Tech Industries, • Heated Saline Frac Water Supply From a Saskatchewan Watershed Authority also on the commitApproved Source Well tee. “It wasn’t about the score this year, it was about fun.”

Setting new standards in Oilfield On the longest Waste Management Services drive hole, the ladies had to get on their knees and use little kid putters to complete the hole. Another fun hole saw marshmallows being hit off the tees.

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A24

PIPELINE NEWS August 2010

Battery set ablaze, lightning strike con¿rmed

Even 12 hours after it started, this battery Àre was still going on July 2. The Àre was the result of an intense thunderstorm that blew over the Stoughton area the night before.

Photo by Brian Zinchuk

By Brian Zinchuk Stoughton – Lightning appears to have been picking on oil batteries in the Stoughton area. Just a few weeks after lightning struck a battery south of Stoughton, it set another battery ablaze approximately 10 km west-southwest of the community during the early morning hours of July 2.

That night an intense series of thunderstorms blew through the area, with substantial amounts of lightning. The Viewfield-area Crescent Point Energy Corp. battery was likely hit around 3 a.m.

“I got a call at 3:30 a.m.,” said Dale Rinas, southeast Saskatchewan field manager for Crescent Point, who was informed the battery had gone down shortly before. An investigation confirmed it was lightning that caused the fire.

“The facility consists of two tank farms, each has six tanks. The fire originated in the south tank farm.”

The north tank farm remained intact, and in re-

markably good shape, he said.

Each of the tanks was 1000-bbls. in capacity.

Some had produced water, others had oil. A gathering point for nearby wells in the area, the battery typically ships out clean oil by pipeline, eventually finding its way to an Enbridge terminal in the area.

Crescent Point operators were able to shut in the wells feeding the battery within an hour of it going down, cutting off any further fuel for the fire. “We were able to contain this on site. The best bet for this was to let the oil burn,” Rinas said.

The site was secured by 9:30 a.m. the following day.

Stoughton’s fire department, Firemaster and HSE of Weyburn all responded. While the battery burned, the area was cordoned off to keep everyone a safe distance away.

One operator who responded to a call from his own, unrelated battery in the area when the power went out saw the blaze in its early stages. He said he

saw the fire at 3:30 a.m. “I got my alarm about quarter after. Your battery will phone you if the power goes out,” he said, declining to give his name.

He said there was lots of lightning at the time.

“Oh God, yeah.”

“It’s been burning for 12 hours, eh?” he commented.

The fire was a lot bigger earlier, he said, with multiple tanks on fire.

The smoke plume was visible a long way off even the following afternoon. Two people driving by the site said they saw the plume all the way from Regina as they came from the city. (The wind was blowing in that general direction the afternoon of July 2, 12 hours after the fire.)

“It looked like a ‘freaked out’ cloud. But when you get down here, you see it’s a fire,” said the witness, declining to give his name.

Indeed, another reported it was visible as far as Crosby, N.D.

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PIPELINE NEWS August 2010

A25

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A26

PIPELINE NEWS August 2010

A &

Enbridge Alberta with Enbridge Clipper wrap-up Re: Alberta Clipper

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A piece of the Alberta Clipper project is lowered in last summer.

File photo by Brian Zinchuk

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The Alberta Clipper project is all but complete now. It was a 36inch diameter pipeline addition to the Enbridge mainline system whose construction began in 2008. Enbridge spokesperson Gina Jordan provided a wrap-up overview of the project for Pipeline News.

Q: Is everything wrapped up, including the final cleanup? If

not, when will that be?

A: Alberta Clipper is now in service and we are implementing our line fill plan. Land restoration of is ongoing and over the next several months Enbridge staff and environmental consultants will be conducting a post-construction environmental monitoring program. This program will evaluate the success of the reclamation program for the pipeline right-of-way that has been undertaken to date and identify locations where remedial work may be necessary. Monitoring restoration activities is critical to identify and mitigate

any developing issues as promptly as possible.

Monitoring also enables us to improve the effectiveness of our restoration activities and recommend ongoing program improvements.

Q: How will the new line be numbered, i.e. Line 99, since Line 6 is already taken?

A: It will be Line 67 Q: When did the line go into operation and the line fill begin?

A: Alberta Clipper is now in service (as of April 1) and line fill is underway. Line fill is expected to be complete by the end of September 2010. ɸ Page A27

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PIPELINE NEWS August 2010

A27

Alberta Clipper Q & A ɺ Page A26 Q: What is the intended purpose of this line?

A: Once fully operational, Alberta Clipper becomes part of our mainline system, which has been operating along the same route for 60 years. The Alberta Clipper project was an integral part of Enbridge's expansion program designed to meet North America's needs for reliable and secure energy supplies. Alberta Clipper is a crude oil pipeline that will provide service between Hardisty, Alta, and Superior, Wis. This 1,000-mile/1,607-km segment is designed to resolve expected capacity constraints. Initial capacity will be 450,000 barrels per day (bpd), with ultimate capacity of up to 800,000 bpd available.

Q: Is it being filled with bitumen?

A: The Alberta Clipper project is an expansion of our Enbridge mainline system and on completion becomes an integral part of that system and will carry crude oil, from Hardisty, Alta., to Superior, Wis.

This pipeline is capable of carrying a variety of crude oil products.

Q: How long does it take to fill the line? Why so long?

A: For commercial reasons, the details around timing for line fill are confidential, but we expect to complete line fill by the end of September 2010. The initial capacity of the line will be 450,000 bpd, but the line fill volume is in excess of 1 million cubic meters of oil.

Q: Is it a testing process?

A: Comprehensive safety testing (hydrotesting) of Alberta Clipper was completed prior to beginning line fill.

Q: Has everything gone according to plan? Are you meeting your planned in service dates?

A: Enbridge delivered the Alberta Clipper and Southern Lights Projects on time, on budget, and while achieving our challenging standards for safety and environmental performance.

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Enbridge buys out other half of caverns Hardisty, Alta. - Enbridge Inc. announced on June 16 the completion of the acquisition of the 50 per cent of the Hardisty Caverns Limited Partnership previously owned by CCS Corporation for approximately $52 million. The Hardisty Caverns facility, now wholly owned

by Enbridge, includes four salt caverns totaling 3.1 million barrels of capacity, and provides term storage services under long-term contracts.

“Our partnership on the Hardisty Caverns with CCS has been a fruitful and mutually beneficial one,” said Stephen J. Wuori, executive vice-president, Liquids Pipelines. “We're pleased to be able to consolidate our contract storage po-

sition at Hardisty, Alberta, which we view as an important hub for growing oil sands production.

“The facility has excellent long-term growth prospects, including development of additional caverns as well as extensive surface storage development potential in an area where well-located land is difficult to acquire.”

Significant demand for contract storage exists in the Hardisty region as a result of the growth of the oil sands and the development of expanded export pipelines. Enbridge is the largest operator of contract storage facilities at the Hardisty hub with its ownership of the 3.1 million barrel Hardisty

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The United States Strategic Petroleum Reserve uses a similar concept of cavern storage, storing vast amounts of crude oil in giant salt caverns underground in Texas, Louisiana and Mississippi. The Hardisty Caverns complex is just a fraction of the size of the strategic reserves, however, which has a total capacity of 726 million barrels among 62 caverns.

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A28

PIPELINE NEWS August 2010

Commercializing captured CO2

There’s lots of future use of captured carbon dioxide, particularly for enhanced oil recovery, according to Lionel Kambeitz, president and CEO of HTC Purenergy in Regina. They have launched a new company, EHR Enhanced Hydrocarbon Recovery to do just that.

File photo

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Regina – Regina’s HTC Purenergy is taking the next step in its plan for vertical integration of carbon dioxide usage in the oil and gas industry. Until now, much of their focus has been on capturing CO2 post-combustion. Now, to enhance their product offering, they have launched a wholly-owned subsidiary to implement that captured carbon dioxide in enhanced oil recovery (EOR).

The new company is called EHR Enhanced Hydrocarbon Recovery Inc., and will specialize in EOR. Announced June 1, it will allow HTC Purenergy to offer carbon dioxide management systems from capture through to EOR and storage.

“We’re bulking up with more engineers and geologists,” said Lionel Kambeitz, chairman and CEO of HTC Purenergy. They are introducing at a commercial level, the skills and technologies needed for EOR using CO2.

“We think there are lots of lights, mediums and now heavies and bitumens that are going to require CO2 solvents to produce,” he said of varying grades of crude oil. “In this regard, we’ve talked extensively to the oil and gas sector in Calgary and have received an incredible response.”

The company is seeking to provide the expertise on incorporating this technology into existing producers’ fields.

Cameron Wyatt, who looks after business development with EHR, said, “We see immense opportunities for the implementation of CO2 in all sectors of the oil industry in North America. Not only can we increase production we are also creating value for CO2 which was previously released to atmosphere. A direct working relationship between EHR and HTC will allow oil companies an avenue for sourcing CO2 as well as the expertise to deliver,” said Wyatt.

“Come to us with your existing or planned production. We start by looking at the oil – miscibility pressure and geology. We would plan out a map for you to do your CO2 flood.” Wyatt also pointed out that there are now some trial floods going on in a few fields. “Larger producers are starting to look for ballpark costs, which is extremely exciting. This really continues to facilitate our use of CO2 as an oil extraction tool” he said. ɸ Page A29

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PIPELINE NEWS August 2010

CO2 capture needed for new coal development ɺ Page A28 The plan is to hinge on their CO2 capture and management expertise. “It is really an extension of HTC Purenergy,” Kambeitz explained. “But now it’s under its own brand. We have been in this business since 1999; however, we’ve just recently decided to give it its own life and company.”

EHR will be based in Regina, with a western office in Calgary. They’re already looking at hiring several more engineers throughout the remainder of the year with specialized CO2 experience.

The future will see a lot of utilization of carbon dioxide use in heavy oil and bitumen extraction, according to Kambeitz. “We think the heavies, using CO2 vapour and liquid or CO2 mixtures, are showing significant promise for enhanced production,” he said. “Our view is that the beginning of heavy oil is going to open up new opportunities for CO2.”

They see a tie between their ability to capture carbon dioxide with HTC Purenergy modular capture systems on steam assisted gravity drainage (SAGD) boilers and incorporate that at the wellhead nearby. He called this opportunity a good, high value target.

Asked where he’s going to get the CO2 to implement their technologies, Kambeitz explained that in addition to their SAGD boiler capture, “We like gas plants. We like fertilizer and ethanol plants.

“There are a lot of mid-sized to smaller-sized CO2 industrial sources,” he added.

A recent announcement by the federal government that any future coal development will have to bring its greenhouse gas emissions in line with combined cycle natural gas turbines has Kambeitz smiling. “There’s no way to get down to the level of a combined cycle turbine without a CO2 capture system,” he said.

EHR was active at the Global Petroleum Show in Calgary in June, something Kambeitz said was “a really good opportunity. We’ve had a significant demand as a result.

“We know there is going to be a continued expansion in the use of CO2.

We need to accelerate that.”

There’s more to come from the publicly traded HTC Purenergy. “The last part of that [vertical integration] is the ability to take CO2 stored in the reservoir and monetize it as a carbon credit,” Kambeitz said. Stay tuned.

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A29

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A30

PIPELINE NEWS August 2010

Oilpatch businesses receive Weybex awards Weyburn – Several oilpatch businesses were recipients of Weyburn Business Excellence, or Weybex awards, on June 11 at Weyburn’s McKenna Hall.

Taking the Business of the Year honours was Southern Industrial and Truck. They also took home the award for New or Expanded Business.

United Centrifuge was honoured in the ComNorm “Pierre” Mondor, right, accepts Aldon Oils entry into the Weybex Hall of Fame on June 11.

The Weybex awards are a bi-annual event honouring business excellence in Weyburn, put on by the local chamber of commerce. Photo by Greg Nikkel, Weyburn Review

munity Involvement category.

Aldon Oils, a privately held Weyburn oil company, was entered into the Business Hall of Fame.

The Weybex awards are held every two years, opposite of the Weyburn Oil Show. “That’s our signature event,” explained Jeff Richards, general manager of the Weyburn Chamber of Commerce.

There were 216 people in attendance at the event.

All the winners are then forwarded to Saskatchewan Chamber of Commerce Abex Awards for consideration. The nominees will be announced in the fall, with the Abex ceremony to be held on Oct. 30.

Enform established in Regina

By Rose Ditaranto for Pipeline News

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Regina – Enform celebrated one year in Saskatchewan this April, which established a permanent facility in Regina dedicated to administrating important health, safety and training services for employees in the oil and gas industry.

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“The issue that everyone is facing right now is ensuring the health and safety of their workers at all levels. There is everything from the trucking side of the operation to oil field operation, they all have their own inherent issues and situations.

We are able to customize courses and deliver courses specific for the employers and address the specific issues as well,” The services provided by the Regina campus include: replacement certificate printing, Petroleum Safety Training (a requirement of working in the industry), Enform

courses to update skills/ knowledge and comply with legislation, COR certifications, IRPS, safety alerts, organizing events such as the Petroleum Safety Conference Prairies and Safety Stand Down. It also offers access to a variety of industry-related safety and training information, and work in conjunction with regional colleges and franchise trainers.

“We are the Saskatchewan Petroleum Safety Association, we work with the employers, we are the education side of the industry in occupational health and safety, and we are the safety service specialists for the petroleum industry.

“We deal with Sas-

katchewan-based issues and matters that need to be addressed; firstly to ensure the health and safety of their workers. A well trained work force is the best asset any employer can have here in the province,” said Ross.

The province has seen an increase in oil activity in recent years, making Regina the most ideal location for the new campus and the services it provides.

“Enform Canada is the overall functioning body and we are able to tap into all the resources throughout Western Canada as to needs assessments, work assessments as well as what tasks have to be accomplished to ensure the health and safety of workers,” said Ross.

PIPELINE NEWS August 2010

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A31

A32

PIPELINE NEWS August 2010

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PIPELINE NEWS Saskatchewan’s Petroleum Monthly

B-Section August 2010

A welder’s helper controls a welding shack with a tag line as it is lowered onto the pipe during the construction of Alberta Clipper, Enbridge’s most recent mainline addition, in 2009. Each Enbridge expansion to its mainline system, like the Alberta Clipper project seen here in 2009, has been a megaproject onto itself. The welder on the right is wearing a ventilation rig that runs from the back of his head to a belt pack.

File photo by Brian Zinchuk

Enbridge’s superhighway courses under the prairie

By Brian Zinchuk People talk of superhighways – Interstates, freeway, turnpikes and the like. Then there’s the information superhighway. But what many people may not realize is there is a petroleum superhighway, six lanes wide in most places, that courses under the Saskatchewan prairie.

Enbridge’s mainline system is largely unseen.

Except for the periodic valves or pumping stations, most of the mainline is invisible except for the signs along roadside fence lines. Yet this superhighway is what keeps the North American economy rolling, literally.

When they say Canada is the largest supplier of petroleum to the United States, what’s not included in that statement is that most of that petroleum flows through Enbridge’s mainline system, running right through Saskatchewan.

In many ways, the pipeline network is like the circulatory system of the human body. Flow lines from well sites are the capillaries, small and low pres-

sure, collecting the fluid. They run into larger pipelines akin to arteries, the feeder systems. Then the feeder systems join the mainline, for long distance, high pressure transportation. The Enbridge mainline is the aorta of Western Canadian oil production. In combination with the Lakehead System, it has a capacity of approximately two million barrels-per-day.

Once the most recent expansion project, known as “Alberta Clipper” begins delivering oil, that number will rise by another 450,000 bpd initially, and then to 800,000 bpd over current capacity. Alberta Clipper is currently in a several-month long filling stage, which should be complete in late September, according to Gina Jordan, Enbridge spokesperson.

Pipelines are widely regarded as the most efficient and safest way to transport petroleum over land. If you were to use rail or highways to ship the same volume of product through those lines, you wouldn’t have much room on the roads or rails to haul much of anything else. The mainline system through Saskatchewan transports over two million

barrels-per-day. That’s the equivalent of 36 ½ unit trains of rail tanker cars hauling 55,000 barrels each per day, every day, no matter the weather.

The first pipeline, now known as Line 13, saw construction begin in 1949. It was a 20-inch line, shipping oil from Edmonton to Superior, Wis. That first line was built by Interprovincial Pipe Lines, the name Enbridge was known by for decades until 1998. Additional lines have been built alongside the first, usually one every ten years or so including the first 36-inch line that was installed in 1998.

Alberta Clipper, another 36-inch line, running from Hardisty, Alta., to Superior, Wisconsin, was built starting in 2008, and became ready to receive oil on April 1, 2010.

There’s been a lot of news about Alberta Clipper over the years, but don’t think it’s a separate pipeline system. It’s not. Now completed, it will simply be another one of the pipelines that make up the Enbridge mainline, along the same right-of-way. ɸ Page B2

B2

PIPELINE NEWS August 2010

The aorta of Western Canadian oil production ɺ Page B1 Each line took several crews of over 500 men to install, and each could be called a ‘megaproject’ in and of itself – costing billions of dollars and employing thousands of workers to build and operate.

Regina’s Ipsco, now Evraz, built its business around supplying pipe for such projects.

With good coating and continual maintenance, the lines can and do last for decades. Line 13 has been in operation for 60 years, and has many more years expected of it.

The mainline crosses the Alberta/ Saskatchewan border just east of the major terminal at Hardisty, Alta. It runs from Kerrobert to Rosetown, across the South Saskatchewan River near Outlook, then to Regina, where there is a major terminal and tank farm. Continuing east, the mainline passes White City, Vibank, Kipling, and Marysfield, where it crosses the Manitoba border to link up with the next major terminal at Cromer, Man. For most of that length of right-of-way, the mainline is made up of six pipelines, spaced typically three metres apart.

The right-of-way itself actually bisects several communities in Saskatchewan. It cuts through the northwest corner of Regina on the way to the Regina tank farm and refinery. At White City, the right-ofway crosses Highway 1 at an angle, making for a very long road bore. It runs right through White City, leaving an open green space down the middle of the community. When the last line was put in, it had to go around the community, because there was no more room on the right-of-way in the community.

Kipling, too, is bisected by the mainline pipelines. Again, a green space runs through the community where the lines are located.

One way, or another Until recently, everything flowed in one direc-

tion: east-southeast. But that’s changed with the Alberta Clipper/Southern Lights projects of recent years. Alberta Clipper was constructed to accommodate the transportation of additional oilsands production to the US. However, the bitumen of oilsands production does not easily flow through pipelines without being diluted with diluents. That diluent is sourced from refineries in the U.S. Gulf Coast, midcontinent and Midwest. By reversing the oldest line, the 20-inch Line 13, Enbridge will now take the diluent to Edmonton to enable the transportation of the thick bitumen from the oilsands to the markets in Eastern Canada and the U.S. It’s the first time one of these mainlines will be flowing in the opposite direction.

Most oil produced in the Western Canada Sedimentary Basin that is not consumed locally is exported on Enbridge pipelines. Until recently, the other big player in the Canadian pipeline business, TransCanada, had focused on natural gas shipping.

However, in recent years it has converted one of its older lines from natural gas to oil, and called it the Keystone line. It’s now the foremost competition for the Enbridge mainline system for transporting oilsands production. A new greenfield pipeline, Keystone XL, is planned to take a shortcut from Hardisty, Alta, to Cushing, Okla., and will cut through southwest Saskatchewan. It, too, will provide competition to the Enbridge mainlines. Recently, there has been jostling between the two companies at the National Energy Board level as to whether the market can support both.

Expansions Enbridge is continuing with several expansion plans. On June 28, it announced a $400 million plan to expand its Waupisoo system in northeast Alberta.

An application has been submitted to the NEB to build the Northern Gateway Project consisting of

twinned pipelines from near Edmonton to Kitimat, B.C., on the Pacific coast. Closer to home, Enbridge Saskatchewan has been actively increasing capacity in southeast Saskatchewan to accommodate burgeoning Bakken oil production in both Saskatchewan and North Dakota.

Enbridge pumping stations in Saskatchewan, from west to east: • Cactus Lake • Kerrobert • Herschel • Milden • Loreburn

• Craik • Bethune • Regina • Rowatt • White City

• Odessa • Glenavon • Langbank

The Enbridge mainline system cuts across southern Saskatchewan in an east-southeast direction.

Map courtesy Enbridge

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PIPELINE NEWS August 2010

B3

It took a while to complete, but the new building for Apex OilÀeld Services, east of Estevan, is substantially larger than their former Lampman location.

Apex moves to new Estevan location Estevan – After nearly three years in Lampman, Apex Oilfield Services (2000) Ltd. has moved to an industrial park on the east side of Estevan.

“We moved in the beginning of May,” said Rob Chmelyk, branch manager.

Apex becomes the first tenant to be completed in the Nisku 2 Industrial Park, located northeast of the intersection of Highway 39 and the Shand Power Station Road. The road is destined to become part of the proposed Estevan bypass.

“That’s going to be huge for us,” Chmelyk said, but noted, “The nature of our business isn’t a driveby. It’s not going to hurt us to have more exposure.”

Chmelyk said the move to Estevan resulted in a bigger facility and bigger yard. With more demand for their equipment, it made sense to be at Estevan, where they are closer to support services for their products.

“Estevan was a better location. We’re an oilfield rental business. Parts and service are a huge part of our business,” he said. “Pretty much everything we need is found in Estevan. Lampman served us well, but we grew out of the property in Lampman.”

They now had a 10 acre site, as opposed to three acres before.

The new facility has 12,500 square feet, and more office space. It was built for growth, with several unoccupied offices ready for that contingency.

That’s substantially more than the three room office trailer and shop they had before. “This board room is about the same square footage as our trailer,” he pointed out.

Chmelyk commented, “We see the opportunity in southeast Saskatchewan and Manitoba. It was built with growth in mind as a full service facility.”

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bay and pump bay. There’s also a 30 x 90-ft. wash bay.

The project saw substantial delays, and required some redesign before it was completed.

A bigger centre is also expected to make it easier to entice and recruit new people.

Apex is a privately held company with a Red Deer, Alta., head office.

The company handles a variety of rental equipment. Wellsite trailers and centrifuges are two of the primary lines. “We also rent flocs, shales, upright tanks, pumps, and some specialty tanks as well,” Chmelyk explained. “Drilling rigs are our primary target, but compeletions are important as well.”

He noted the rig numbers in the region are close to 2008 numbers, which was a good year. Indeed, Chmelyk said their primary driver is drilling. “That is the nature of our business.” ɸ Page B4

B4

PIPELINE NEWS August 2010 Rob Chmelyk, branch manager for Apex OilÀeld Services at Estevan, explains they have a lot more room in their new location.

On proposed bypass

Day

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ɺ Page B3 “We have a branch in Lloydminster as well.

We have branches across Western Canada.”

Chmelyk said their services are identical to the Lloydminster operation. In Lloydminster, Apex moved into a new facility two years ago.

There is also a full service branch in Gull Lake.

The Estevan location also services Manitoba.

There’s another facility in Williston, N.D., that handles wellsite trailers.

“That’s going very well for us,” he reported, noting it was an independent operation.

There are 11 people working at the Estevan location, up from four when the Lampman facility was first started.

“As business increases, we will increase to meet our needs,” Chmelyk said, adding they have been able to find good individuals locally and in the region.

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“There isn’t an abundance of people knocking on your door,” he said. Some workers have decided to return to the drilling rigs.

At Estevan, they have one winch tractor to move their equipment around, but they’re not in the trucking business, so outside contractors move most of the units.

The expanded shop will enable them to do more of their own service and repair. “We hired a mechanic on board,” he said.

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B5

New of¿ce was doubled immediately Weyburn – Crescent Point Energy Corp. officially opened its new office in Weyburn on June 22, having built it with growth in mind.

Growing through acquisitions and the drill bit, the company was overdue for a new office in the region.

The company had an office in Estevan, plus another in Carlyle. The decision of where to put the main office for southeast Saskatchewan was one the company agonized over, but eventually, Weyburn won out over Estevan, according to Dale Rinas, southeast Saskatchewan field manager for Crescent Point. Rinas said, “It was the most difficult decision we had to make,” but added, “It made sense with the acquisitions.

“To be honest, we considered Stoughton for a while,” he noted. The Stoughton district is an important core area for Crescent Point.

They have operations from Tatagwa to Carlyle, mostly straddling Highway 13.

There are still 20 people based in the Carlyle office, but seven positions were moved from Estevan to Weyburn.

Crescent Point’s production in southeast Saskatchewan has grown substantially over the last three years. In 2007, it was 16,825 boepd, and nearly doubled to 29,169 in 2008. Currently they are capable of producing over 40,000 boepd. The purchase of Shelter Bay, which closed on July 2, added an estimated 4,000 to 5,000 boepd.

Over that time, Rinas said, “We went from 40 to 110 staff,” pointing out it was significant growth.

Most of those workers are operators. They also have operations engineers in Weyburn and Carlyle. There’s also development staff, maintenance, and administration. There are also direct contractors working for Crescent Point.

To accommodate this level of growth, the com-

The new southeast Saskatchewan main ofÀce for Crescent Point was ofÀcially opened on June 22 by president and CEO Scott Saxberg.

Photo by Sabrina Kraft, Weyburn Review

pany decided to substantially increase the size of the facility. “Before turning dirt, we decided to double it right away. It was the right call,” Rinas said.

That will allow them to squeeze in another dozen or so as needed.

The whole building is 15,800 sq.-ft., all on one level.

Crescent Point’s new ofÀce in Weyburn was doubled in size before they even started construction.

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B6

PIPELINE NEWS August 2010

KRJ in third shop in recent years The new plasma cutter at KRJ Custom Fabricating has proven its worth. It can cut perfect Saskatchewan Roughrider logos.

Estevan – KRJ Custom Fabricating decided the easiest way to move its metal fabricating equipment to a new shop was to sell it.

The company sold

off its primary equipment and bought new as part of the process of moving into a new shop this year, next door to its former location in the KRJ Industrial Park.

KRJ is owned by Randy Franke and Ken Mechler. Franke heads up the KRJ efforts.

Mechler focuses on their other business, Pongo Holdings, a rentals and

water supply business.

KRJ was located in the city of Estevan, but moved in recent years to a new development they founded, southeast of the intersection of Highway

39 and the Shand Power Station Road. They bought 60 acres in late 2006, and developed the parcel into an industrial park, setting up their own shop as the first tenant. Groundwork started in 2007. The industrial park is one of several to spring up in the RM of Estevan in recent years.

It was originally six 10-acre lots, but some have been split up. Now the park is sold out, and home to several businesses. Turnbull Excavating is stockpiling material on one site, Atco Lodge Estevan is in another, Lavoie Steam Cleaning is in the corner, and Halliburton moved in earlier this year. The other lots have been sold, but have not yet been developed.

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Indeed, when Halliburton decided to return to Estevan for their frac operations, they didn’t want to wait until a new facility could be built.

Instead, they purchased KRJ’s existing shop, necessitating their moving out less than a year and a half after they moved in.

“We were going to build them a new building. They decided they really wanted to get into town,” Franke said.

Thus construction began on the new facility in November, 2009. There was really nowhere to store their equipment, so they auctioned it off. It afforded them the opportunity to pick up new, modernized hardware. “It was a good chance to clean house,” said Mechler.

The new building became usable in May, and is a little larger than the previous one, adding a second story of office space and another 40ft. in length, making the building 80 x 180-ft.

Their own staff of 10 employees did much of the work. It meant in large part shutting down their primary operations for several months, but they were still actively in business during the move, doing things like repairs, or selling hardware like latches and hinges.

As of mid-July, they were installing a new computerized plasma cutting table. Mechler noted their old one was entry level. “This is top end.”

As test samples, a perfectly cut Saskatchewan Roughriders’ logo could be seen near the new cutter.

The company has also installed a brand new 160-tonne break, a 10-ft x 1/4 inch sheer, and a 65-tonne ‘iron worker’ that is a cross between a sheer and a press. “It’s mainly for putting holes in stuff,” Franke explained.

Most of the new hardware is CNC, or computer numerical control. They also picked up all new TIG, MIG and arc welders. ɸ Page B7

PIPELINE NEWS August 2010

KRJ Industrial Park already sold out

Steven Raymond works on a large sheer at the new KRJ Custom Fabricating facility.

ɺ Page B6 Production runs of one “If you can think it, we can make it,” Franke said of their company’s motto. Their products vary from small parts like lifting lugs and flanges to artwork to service bodies for trucks. “We do it to customer’s specs.”

“We mainly specialize in production runs of one,” Mechler added.

They do have a few products that are more common, like a fuel tank/tool box combination.

KRJ’s specialty is aluminum, and you’ll see a lot of diamond plate aluminum out there with their logo on it. They also do some stainless steel work, like a stainless steel kitchen for a local lodge over the summer.

Some of the custom artwork includes ornate railings being down for a retail store in Estevan.

“We’ve diversified,” Franke said, adding they do a lot of work for the local coal mines and two power plants, as well as for individuals.

One thing they don’t do is field welding.

Franke notes, “There’s welders, then there’s fabricators. We have stuff brought in – here, ‘make this,’” he said as he holds up a loose leaf piece of paper with a loosely drawn sketch on it. Other times, plans come in on little pieces of cardboard.

They look for workers that can look at these things, then picture it in their head and create it.

“Here, you kind of do everything,” Franke said.

t n ll e nity e tu c Ex por p O

B7

This ornate staircase railing is one of the more artistic products KRJ Custom Fabricating can produce. Holding the railing is Randy Franke, one of the partners in the Àrm.

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B8

PIPELINE NEWS August 2010

Proposed truck bypass draws interest

Sandy Wilson and one of his sons do land preparation work for a lot in the Nisku 2 development that has drawn interest. Apex OilÀeld Services recently moved into their new shop.

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Estevan – When R.S Wilson and Son Construction Ltd. lost the contract to haul fly ash from the Shand Power Station a few years ago, it meant they had to find a new home for company, too. So in 2006, owners Sandy and Marian Wilson bought some land just east of Estevan, north of Highway 39 and running along the gravel road that leads to the Shand Power station.

Little did they know that land would soon end up being prime real estate, as plans for a new truck bypass around the city indicate that gravel road will soon become part of the bypass.

“We didn’t really have an idea. We had heard rumours that there would be a truck route,” explained Marian Wilson. “We had to move our shop off of Shand.”

In 2007, they bought a bit more land, bringing the total to 80 acres. In recent years, they’ve developed it into the Nisku 2 Industrial Park. It’s one of several that have sprung up along the east side of Estevan in recent years in the RM of Estevan. There are seven lots in the south half, and the north 40 acres is currently undeveloped.

The name of the development company is Marian Land Development Sales Ltd. Nisku 2 derives its name from the industrial community south of Edmonton, where Sandy spent a lot of time over the years attending heavy equipment auctions.

It helps developing your own property when you’re in the earth moving business. Last summer, Sandy and a small crew could be found installing a water line leading to the industrial park. The park has all the standard utilities – water, power, gas, telephone. Typical of RM industrial parks, sewer is not included.

“We prepared the lots and make sure there aren’t any soft spots and that they’re properly drained,” she said. “Our lots are sold developed or undeveloped.”

Apex Oilfield Services, their first tenant, recently moved into their shop in the park. The Wilson’s have moved their 60 x 80-ft. shop to a lot of their own, and plan on expanding it.

In July, they were preparing another lot, drying it out with a dozer and scraper.

Interest has picked up in the properties, according to Marian, saying a fair amount of that interest is due to it being on the proposed truck route. This includes inquiries into their undeveloped 40 acres.

Will there be movement on new development this fall?

“I believe so, yes,” she responded. “There are probably another 17 acres that will be developed in the near future.”

As for the bypass, she said, “We understand it is supposed to be coming through in 2011, but we’ll wait until we see it.”

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B9

Smear campaign targets the oilsands A San Francisco-based group Corporate Ethics International launched a media ad campaign, dubbed â&#x20AC;&#x153;Rethink Alberta,â&#x20AC;? which it plans to bring to the United Kingdom as well. Billboards carrying the ads began appearing in Seattle, Portland, Ore., Denver and Minneapolis in early July urging Americans to boycott Alberta until the Alberta government halts expansion of the oilsands.

Alberta Premier Ed Stelmach recently send a letter to U.S. Secretary of State Hillary Clinton to dispel myths about the oilsands and outline what the Province has

done to improve environmental standards and cut carbon emissions.

His letter followed a $50,000 half page ad in the Washington Post, urging a Presidential Permit for TransCanadaâ&#x20AC;&#x2122;s Keystone Gulf Expansion (also called the Keystone XL pipeline) from Hardisty Alta. to connect with the existing Keystone pipeline that will extend to the U.S. Gulf Coast. Photo courtesy of Corporate Ethics International.

Alberta was targeted by a negative billboard campaign in July.

Boyd remains ER minister

Bill Boyd kept his job as Minister of Energy and Resources in the late-June cabinet shufĂ e.

Regina â&#x20AC;&#x201C; In a substantial mid-term cabinet shakeup on June 29, Premier Brad Wall has left Bill Boyd, Minister of Energy and Resources, right where he is.

Indeed, the MLA for Kindersley was one of seven ministers left in his current role, and one of three who picked up additional responsibilities. In Boydâ&#x20AC;&#x2122;s case, he will now look after SaskTel as well.

Other ministers whose responsibilities aďŹ&#x20AC;ect the energy sector include Dustin Duncan, MLA for Weyburn, is now the Minister of Environment and SaskEnergy.

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Rob Norris, MLA for Saskatoon Greystone, is now Minister responsible for SaskPower and Minister responsible for Innovation in addition to being Minister of Advanced Education, Employment and Immigration.

Lloydminster MLA Tim McMillan became Minister responsible for Crown Investments Corporation (CIC), Saskatchewan Government Insurance (SGI), Information Services Corporation (ISC) and Information Technology OďŹ&#x192;ce (ITO).

Meadow Lake MLA Jeremy Harrison becomes

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"This new cabinet is a strong team that will keep Saskatchewan moving forward and address the challenges and opportunities of a growing, vibrant province," Wall said.

Delbert Kirsch, MLA for Batoche, will become the new Chair of the Legislature's Standing Policy Committee on Crowns and Central Agencies and Thunder Creek MLA Lyle Stewart will become the new Chair of the Standing Policy on the Economy.

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PIPELINE NEWS August 2010

B-train weights harmonized Regina - Working across borders, at least to the west of Saskatchewan, has become easier for truckers.

On May 31, the provincial government announced Saskatchewan shippers will now be allowed to transport their goods by truck at the same weight in certain configurations as their counterparts in Alberta and B.C. in an effort to harmonize rules for commercial carriers across the three provinces.

The amendment to The Vehicle Weight and Dimension Regulations, 1999 will improve the productivity of carriers operating B-train truck tractor and semi-trailer combinations by allowing an increase

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in the weight limit from the current 62,500 kg to 63,500 kg on Saskatchewan's most heavily travelled highways. Alberta and B.C. allow a weight limit of 63,500 kg for these vehicles.

It was a example of unnecessary trade impediments brought up by Premier Brad Wall during the signing of the New West Partnership Agreement on April 30.

“This weight increase is an example of the New West Partnership at work,” Highways and Infrastructure Minister Jim Reiter said. “It's a change specifically requested by the commercial carrier industry that will have tangible and immediate benefits, and it supports the goal of the New West Partnership in creating a barrier-free trade zone and investment climate in the three western-most provinces.”

“We're very pleased to see the provincial government moving forward on harmonization of regulations for our industry,” Saskatchewan Trucking Association Director Steve Balzer said. “The largest impact on commercial carriers is the ability to operate B-train combinations through the Saskatchewan-Alberta-B.C. corridor without having to reduce shipping weight.”

For B-trains which maximize their loading, the payload increase will bump up productivity by an estimated 2.5 per cent. An additional benefit is that carriers will have more flexibility when loading their vehicles. Carriers hauling dry bulk commodities often have difficulty in properly distributing their loads and are therefore not able to maximize their loading.

By increasing the allowable weight by one tonne on the centre axle, carriers will have the flexibility they need to increase their payload, according to a government release.

The increase in weight limit will be done in two phases. Phase 1, implemented on June 1, provides a weight limit increase to specified provincial highways as well as all cities and urban centres located along these routes.

Highways in the oilpatch include Highways 1, 4 (north of Swift Current, but not south), 7, 14, 17 and 39.

Phase 2, to be implemented at a future date, would see the weight increase expanded to the remaining primary weight highways capable of supporting the increased weight, and would allow both urban and rural municipalities the ability to increase primary weight within their respective jurisdictions by bylaw.

However, not all tridem axle groups are covered, at least not yet. The government backgrounder noted, “The Ministry is using a multi-phased approach to increasing the weight on tridem axle groups. The first two phases will be limited to B-trains. Once there has been an opportunity to assess the impact of the weight increase, the Ministry will explore the potential of increasing the weight to all mid-spread tridem axle groups.”

Tridem trailers are common for crude and produced water hauling, as well as semi-vac trucks.

In order to take advantage of the new 63,500 kg weight allowance, commercial vehicle owners can increase the Gross Vehicle Weight (GVW) on their commercial vehicle registrations by visiting any issuer's office or one of SGI's branch offices.

The government backgrounder pointed out that from Ontario to the Pacific, only Manitoba will have a 62,500 kg weight limit for this category of trucks, with the rest having a 63,500 kg limit.

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PIPELINE NEWS August 2010

B11

New hotel rises in Estevan

By Rose Ditaranto

for Pipeline News

Estevan– Estevan’s growing community and booming oil industry just received some alleviating news that helps new residents find a place they can call home.

Choice International has begun the construction process and the new Suburban Extended Stay Hotel is set to open in late spring of 2011.

Although the hotel will operate under the Choice International banner, it will be owned and operated by Encore Hospitality Inc., headquartered in Winkler, Manitoba.

“Choice International usually has their finger on the pulse of the active areas, sort of those market places that would appeal to a particular brand of hotel.

The idea behind Estevan is that Choice recommended it first as a hot spot, then we had a third party marketing group

that identified it as an ideal location,” said David Landzaat, Encore CEO. There were many contributing factors that took part in deciding where a facility such as an extended stay hotel should be built, said Landzaat.

“Estevan has introduced a new tax incentive for new businesses called the Can Do tax program, and it’s been out for a couple of years.

In essence it gives an incentive to companies, such as ours, to waive taxes for one year, so that’s a bonus right there. “Additionally that lends itself to confidence in the city, confidence from our end of it as a company for future endeavors and construction because it identifies Estevan a regressive and thriving and energetic community,” he said.

Landzaat added that everyone understands the notion that new business ventures in

any area add to the quality of life, which in turn extends the tax base and allows for future investments.

An extended stay hotel will only enhance such quality amongst residents in Estevan because it is geared towards those who require living accommodations longer than one night.

“It caters to individuals or groups that are not transient, transient being those overnighters, these people usually stay between two weeks and two months. The idea behind this particular hotel is it reduces certain amenities. You don’t usually have a restaurant attached, or play rooms or conference rooms, but it is geared specifically to long-term stay, which means the rooms themselves are designed a little bit differently, a little bit more of an open concept with those amenities per room usually

involving fridges, cooking stoves and cabinetry,” said Landzaat.

Although the new hotel is not particularly intended for workers in the oil industry, Landzaat said he cannot deny that it will help those here to work.

“We are coincidentally building immediately north of Enbridge.

With Estevan as the heart of the oil play, that whole oil field that is in

the range of southern Saskatchewan, North Dakota, Montana and a little piece of Manitoba and South Dakota, that coupled with millions in commercially secured new pipeline projects that are going ahead for Enbridge, the opportunity for future growth and outside labourers is in full swing for them,” he said.

When it comes to those workers here for

servicing, upgrade, project management and expansion projects, the hotel alleviates some of their housing woes.

“People are not necessarily in the Estevan area for a long term but usually brought in specifically for those projects and those are the people our hotel will cater to, so it’s going to factor in quite heavily with the people in the oil field,” said Landzaat.

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B12

PIPELINE NEWS August 2010

The border’s on Estevan – Just how long are you going to have to wait at the border for your truck to clear?

Wouldn’t it be nice to have some advance notice so you can plan your day?

The Canada Border Services Agency (CBSA) has turned to social media to help people out. You can now re-

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Once you’ve performed your search, you may wish to save it for easy access at a later date. If you choose to follow the CBSA_ BWT account, you will receive updates to all border wait times across Canada.

Twitter applications for smartphones like the Blackberry mean truckers can look up how long they can expect to wait before heading out. Just remember it’s not legal, or safe, to text and or twitter and drive.

The CBSA website notes, “This is an automated service that Does your oilfield waste go to a safe place? tweets when updates are made to individual Did you know that border wait times. TwitPlains Environmental ter may occasionally be is the first class 1A unavailable and we acrated disposal facility cept no responsibility in Saskatchewan and for lack of service owing that our facility secures your waste to Twitter downtime.”

Regarding @refrom ground, water, as well as airborne plies and direct mescontamination? sages, the website says, “We welcome feedback Did you know that our facility is the only one and ideas from all of in Saskatchewan fully our followers, and we licensed to accept will endeavour to join Upstream, Midstream, the conversation where Downstream, NORM possible. We will also and Industrial waste? read all @replies to ensure that any emerging themes and helpful sugThere is a safer way to dispose of your waste. gestions are forwarded to the relevant people in For more information Phone (306) 728-3636 the agency”.

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ceive updated border wait times on Twitter.

The CBSA has launched a threemonth pilot project to broadcast estimated wait times for crossing the Canada-United States land border.

So far, only one Saskatchewan border crossing, North Portal, is listed, using the hashtag #cbsa_npl. ( Just type cbsa_npl into the Twitter search box, and you’ll find it.)

Samples from the feed are as follows: June 30, noon: Commercial Flow: 30

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PIPELINE NEWS August 2010

B13

There are now jobs at home Bismarck, N.D. – A chat with Wayne Sanstead, the North Dakota equivalent of our K-12 education minister, sounds a lot like a discussion with Saskatchewan politicians over the years.

“We educate them, and off they go,” he said of North Dakota’s young adults, in a refrain similar to Saskatchewan graduates going to Calgary for work in years past. Now, with burgeoning oil production in the state, things are starting to change, just as they have for Saskatchewan. “Minneapolis and Denver benefitted greatly from North Dakota-trained people.”

Sanstead could be found checking out the booths at this year’s Williston Basin Petroleum Conference in Bismarck in May. At age 75, he’s in his seventh four-year term as State Superintendent, North Dakota Department of Public Instruction. Unlike in Canada, where ministers are appointed by the premier, in North Dakota, they are elected to their post.

He’s got two years left in the current term. Having a minister in the same portfolio for 28 years would be unheard of in Saskatchewan. He has likely had 10 to 20 Saskatchewan counterparts over the same length of time.

Prior to this position, Sanstead was the lieutenant-governor of the state for eight years, and before that, he was a state legislator for 10 years. His background is 18 years as a school teacher.

“The most important thing about the whole en-

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The most important thing about the whole energy development is it gives us a chance to keep our kids here

”

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ergy development is it gives us a chance to keep our kids here,” he said, noting it is important to instil that job opportunities and careers can be found in the energy industry.

“It’s the bringing together of the oilpatch and education leadership to influence young people.

“We’re talking lifetime careers for students.

Families and communities will know this will open a whole new vista of opportunity for young people.

“It’s just happened in the last couple of years.

The Bakken has changed everything, and the Three Forks are behind it.”

Housing and labour issues are similar between southeast Saskatchewan and North Dakota.

“It’s the same story here. We’ve had abandoned school buildings housing oilfield workers,” he said.

“I’d rather they have students in the building.”

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B14

PIPELINE NEWS August 2010

Twinning of Highway 39 not on horizon

By Rose Ditaranto for Pipeline News Estevan/Weyburn - Estevan mayor, Gary St. Onge says not much is going on at the present time when it comes to the twinning of Hwy. 39.

“About a year ago another group of people in town, residents, because there had been a couple of accidents on the road and they had experienced close calls between Regina and Estevan, had kind of started to bring up support for this as well. Last year November 17, some of these members met with the minister of highways and basically what he said is they feel it’s important to look at.

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“I don’t see it in the five year plan. We just recently got a five year plan from the Ministry of Highways and Infrastructure. It’s not listed on there but that doesn’t necessarily mean a whole lot sometimes because the government doesn’t follow that all the time,” said St. Onge.

However, both St. Onge and Weyburn mayor, Debra Button said they are hopeful the project will take form after the current twinning projects throughout the province are completed. ‘‘We met with the current highways minister and he’s hopeful that once they get the twinning projects completed that are ongoing right now in the province that this is one that he is interested in.

I don’t want to put words in his mouth but certainly they are aware of the numbers. They’ve done the traffic counts,” said Button.

The last study conducted from 2002 to 2008 showed that 10 had been killed and 131 injured on Hwy. 39 from North Portal to Regina.

“To me these don’t indicate as much of an impact, but they know it’s busy and how many close calls there have been. I think it’s only going to get worse because I think it’s getting busier all the time. I think it’s important and I think they need to look at it but I understand you can’t be twinning every highway in the province. There is only a finite amount of money I think you have to look at each

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as you go along,” said St. Onge in response to the aforementioned numbers.

Although safety has proven to be the number one deciding factor behind the twinning of the highway, economic factors do play a role.

Button said, “We are one of the only provinces that doesn’t have a twin link into the U.S, so getting that twin link would certainly bring in more truckers through here, bring in their goods through here.

“Those tourism benefits we feel we are missing out on as well because obviously if you’re going the quickest route you’re not going to come through here and we obviously want those tourism dollars to come through here,” said Button.

St. Onge said the twinning would allow companies to bring their goods into the city quicker and more cost efficiently.

“It is getting busy, busy. It’s an economic thing because if people are slowed down coming here first of all, well the safety factor is probably the most important, but if company trucks are slowed down getting here it could affect timing on some of these projects,” he said.

In terms of relating the twinning project to the oil industry both mayors agree it will alleviate drivers’ stress.

“I just think it’ll make things easier to get here faster and especially if you get some big piece of equipment on the road that’s long and hard to pass it and people get frustrated, so I think it’s a safety factor for anybody but I think it will speed up the movement of goods they need as well,” said St. Onge.

“I think the oil industry is a big consumer of the amount of time they spend on the highways and the safety factor then comes into issue.

Button said, “I have had a lot of complaints from people coming into my office saying they can’t get down the highway because of the oil industry and stuff. I am not discouraging the oil industry by any means, but their numbers are picking up in our area and that just shows on our highway. Certainly the big equipment coming down the highway is causing a safety issue for everyone.”

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PIPELINE NEWS August 2010

B15

Province funds two mid-Sask. high clearance heavy haul corridors Regina – The provincial government is literally reducing barriers to trade by investing $1.6 million to develop high clearance trucking corridors for transporting over-dimension loads.

The corridors will run from Saskatoon to the Alberta border on Highway 7 and Melville to Rosetown via Highways 15 and 4 to allow over-sized loads to be trucked without the need to raise or temporarily cut utility lines and other structures.

The growth and success of the province’s manufacturing sector has led to increased demand for Saskatchewan-made products such as Ready-to-Move houses and industrial products destined for the oil sands.

The $1.6 million investment will be used to permanently raise or bury overhead utilities and will be recouped by charging permit fees to users.

Once the initial investment has been recovered, permit fees will be used to cover maintenance and upgrading of the corridors and de-

velopment of additional corridors to provide a high clearance network across Saskatchewan.

“Providing reliable, low cost and efficient routes to export markets is a primary focus of our government’s management of the transportation system,” said Highways and Infrastructure minister Jim Reiter in a news release.

“We are listening to the people who create jobs and investment in Saskatchewan and responding to their needs.”

In addition to providing high clearance corridors, the province will also simplify the process for transporting over-dimension loads.

Previously, ship-

pers had to work with regulatory authorities to plan a route and arrange for utilities to be raised or cut with each move.

Shippers will now pay a permit fee to use the corridor; however, compared to the cost of raising utilities for each move, this permit fee will dramatically reduce costs.

This project was made possible through collaborative work between Enterprise Saskatchewan, the Ministry of Highways and Infrastructure and private sector input.

“From the very beginning, Enterprise Saskatchewan’s mandate has been centered around listening to the business community

in the province, and working collaboratively to remove barriers to growth,” said Enterprise Minister Ken Cheveldayoff.

“Not only have we worked to smooth out regulatory burdens and taxation issues, but now we have been able to remove actual physical barriers to export growth.

“That translates into success for the industry, success for government and success for the taxpayers of this province,” he said.

Saskatchewan is working on creating the Àrst two high clearance corridors for transporting over-dimension loads.

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B16

PIPELINE NEWS August 2010

Weatherford Drilling expands

This oriented gamma ray took allows directional drillers to determine if they are near the top or bottom of a formation.

Estevan – As part of the expansion of the Weatherford facility in Estevan, Weatherford Drilling Services picked up some new capabili-

ties.

“We went from 40 square feet to two bays,” said Brett Campbell, who heads up the division in Estevan. That

allowed for a breakout machine.

“It allows you to break down larger tools quickly and easily,” Campbell explained.

“There’s not many of them in town.”

Before, they were sending those jobs to Nisku, Alta. “Now we can do it in-house. It reduces costs more than anything else.”

They plan to offer the service to the public. “If someone needs a connection broken, they can bring it in,” he said.

Another newer product that is being offered is the oriented gamma ray, a downhole drilling took that provides directional driller with

situational awareness of what environment they are in. “It keeps you in the zone longer, and lets you know if you go out of the roof or basement,” explained Campbell.

That’s beneficial when the geologist thinks you should be going down, when in fact you should be going up, or vice-versa.

“It draws a picture of what’s above you, what’s below you, and where you are,” he said.

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stop drilling to rotate the pipe, according to Campbell. This model has a sensor that can tell its direction as it rotates.

It’s like the sweep of a radar antenna.

The data signal is sent out via electric current into the formation and is detected at the surface through a ground stake. That system works well around Cromer, Manitoba, but less so around Weyburn, where an anhydrate layer blocks electrical signals.

An annydrate is a chemical compound that lacks the presence of physically attached water.

In those cases, a mud pulse is used. However, a mud pulse has limited bandwidth. “It’s like binary, or Morse code,” Campbell said.

“This is something we’ve used in other areas.

It’s new to this area.”

Campbell said two clients had used the system so far, and they wanted it used on every subsequent well.

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PIPELINE NEWS August 2010

B17

Could Sask use oil to rail?

Bismarck, N.D. – What do you do when you have more oil than you can move by pipeline? Go back to the earliest days of petroleum production, and ship it by rail.

North Dakota is already doing this, with a new oil-to-rail BNSF Railway loading facility at Stanley, N.D. to haul some of its burgeoning Bakken crude production.

Another company, Global Companies LLC, of Boston, Mass., was also looking into providing the service. They are part of Global Partners LP, a Fortune 500 company.

The company is currently looking at North Dakota, but southeast Saskatchewan could be a possibility for them as well.

John Treco works on the ethanol desk for Global Partners, which has facilities on the east coast for loading ethanol to water shipment.

Now they are looking at using those facilities for oil as well. “We’ve tried to develop ethanol to be used for our facilities,” Treco told Pipeline News while at the Williston Basin Conference in Bismarck on May 3.

“We’ve leased one railto-water terminal, and are building two. Each can handle one 80-car unit train a day.”

That equates to roughly 55,000 barrels per train, he said. Each

facility can handle up to a train every 24 hours.

Those facilities are in Albany, N.Y., Providence, R.I., and Boston, Mass. “These terminals are going to be mostly ethanol service,” he said.

Ethanol for fuel is usually blended at the point of gasoline wholesale, he explained.

The company is sourcing ethanol from the Dakotas, Minnesota and Nebraska.

At their water facilities, they can load ocean-going barges to go from their terminals to other ones, such as the refinery complexes in New Jersey, taking advantage of barge backhauls. East coast refineries are set up to take light, sweet crude, the type that is being produced in the Bakken fields of North Dakota, and, to a lesser degree, Saskatchewan and Manitoba.

According to Treco, it is cheaper to ship oil by rail from the Bakken areas to their three facilities, load it onto barges, and ship it by water to these refineries, than to go by rail directly into the refineries.

“The thought is, we have these facilities.

On CP Rail, it is a direct haul,” according to Treco.

“They need their light, sweet supply, and their water-borne sup-

ply is in short supply.”

With a pocket of light sweet crude in the Bakken area, “We see it as an alternative market, and as a relief valve as well, as long as pipelines remain constrained.

“In the long term, once capacity is no longer an issue, there will still be times Texas Intermediate is below Brent,” he added, noting they would provide a market alternative.

“The beauty of rail is you can do it when it makes sense, and shut it off when it doesn’t.

“We have 1.1 million barrels of storage in Albany right now.”

Saskatchewan?

So what about Saskatchewan?

“We would absolutely be interested in Saskatchewan,” he said.

The company has agreements with Canadian Pacific Railway.

That railway has two mainlines running through southeast Saskatchewan. In particular, CP’s Soo line runs right through Weyburn, Midale, Macoun and Estevan, right alongside the Bakken fairway in Saskatchewan, with sidings already in place.

“We have a very good working relationship

with ethanol. We’re starting to talk to them about oil,” he said.

In March, CP and Global announced their partnership in transporting ethanol to the Albany terminal, using 80-car unit trains.

“Once you get it to their line, it’s a single line haul to Albany, with no interconnect,” Treco said.

Using oil-to rail would supplement their ethanol business, and deploy spare capacity, he said.

To do oil-to-rail in southeast Saskatchewan, they would need a local partner who

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unit trains are not essential, he said. The company does not do the loading of rail cars itself.

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PIPELINE NEWS August 2010

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PIPELINE NEWS August 2010

B19

Daylight drawn to the nectar of light Cardium oil

Calgary-based Daylight Energy Ltd. has sold all of its predominately heavy oil properties in the Lloydminster and Bonnyville areas to Gear Energy Ltd. of Calgary.

Photo submitted

Calgary – Go where the honey is. That thinking prompted Calgarybased Daylight Energy Ltd to sell its heavy oil assets in Alberta by July 1st to focus on producing rich light oil from the Cardium formation.

“Heavy oil is good too, but in the Cardium there is so much oil – there are billions of barrels of oil in play there,” said Anthony Lambert, Daylight’s president and CEO. “It’s big and the prize is big.”

The Pembina Cardium formation in west central Alberta has been producing conventional light oil since 1953 and has recently rebounded to become Canada’s second hottest oil play to the Bakken in southeast Saskatchewan.

“New technology has helped to unlock it,” said Lambert. “One of the things that has happened with the tight gas and the tight oil is the horizontal multi-stage fracing has opened up quite a play.”

Daylight sold its heavy oil and some natural properties in the Bonnyville, Halkirk, Lloydminster, Paradise, Sounding Lake, Vermilion and Wildmere

to Gear Energy Ltd., a private Calgary company for $100 million in cash and $25 million in equity.

Gear Energy merged with Black Mountain Energy Corporation in January to capitalize on merger and acquisition opportunities in the oil and gas industry in western Canada.

Lambert says the sale to Gear was a matter

of investment priorities and providing the best production returns for shareholders.

“Only so much capital can be applied at any one of the projects, so we were not applying a bunch of capital to that area (heavy oil),” said Lambert who explained his company acquired those properties in 200405.

“It’s a small piece of our company now. It was about 2,300 barrels a day (in the first quarter of 2010) and we are about 45,000 bbl a day (end of second quarter).”

Proceeds from the sale will help to reduce Daylight’s debt and provide the company with additional balance sheet flexibility to pursue strategic and capital investment opportunities as they arise.

Daylight’s previously announced consolidated 2010 capital budget of $300 million remains unchanged.

The divestiture of assets allows Daylight to focus its financial and technical resources on core growth assets at Pembina, west-central Alberta and Elmworth

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B20

PIPELINE NEWS August 2010

Alberta markets its carbon management on two fronts Edmonton – Carbon management and clean energy continue to be on the front burner for Alberta Energy at home and abroad.

Both topics were high on the agenda during Energy Minister Ron Leipert’s visit to Qatar and the United Arab Emirates ending July 4.

The visit was touted as an opportunity to share expertise and encourage investment in Alberta’s clean energy sector that includes innovative carbon capture and storage (CCS) projects.

This trip follows on the heels of Premier Ed Stelmach’s visit to the United Arab Emirates in January to promote Alberta as a good place to invest in industry leading technologies.

Four energy companies in Canada have signed letters of intent with the Alberta government for CCS

project funding from the province’s $2 billion CCS fund.

Swan Hills Synfuels is the fourth and final project to register for a portion of the CCS funding as noted on the Alberta Energy website.

The province will invest $285 million in this in-situ coal gasification (ISCG) project which will access deep coal seams.

These seams, which are about 1,400 metres below surface, have traditionally been considered too deep to mine.

New wells will access the seams and be used to convert the coal underground into a clean synthetic gas known as syngas.

The syngas will be used to fuel new high-efficiency power generation. The CO2 created during this process

will be captured and used for enhanced oil recovery (EOR).

A total of $495 million will go to Enhance Energy Inc. and North West Upgrading for the Alberta Carbon Trunk Line, a 240-kilometre pipeline that will transport CO2.

The CO2 will be sourced from the Agrium Redwater Complex to begin with and later by the North West Upgrader when that facility is complete.

North West Upgrading plans to upgrade bitumen from Alberta’s oil sands and transport the captured CO2 to depleting conventional oilfields for EOR projects.

Shell and its partners will receive $745 million for the Shell Quest project.

The Quest project aims to capture and store 1.2 million tonnes of CO2 annually beginning in 2015 from Shell’s Scotford upgrader and expansion, near Fort Saskatchewan.

TransAlta Corporation and its partners have also signed a letter of intent to proceed with its Project Pioneer at the Keephills 3 plant west of Edmonton with $436 million invested by Alberta.

The project will utilize leading-edge technology to capture CO2 for EOR in nearby conventional oil fields, or stored almost 3 km underground. The project is expected to capture one million tonnes of CO2 annually beginning in 2015.

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B21

Winners of energy poster contest Highway 1

being rebuilt

Payton Burkhart also a Grade 8 student from Prince Phillip School had the runner-up entry called “Conservation Around the World.” Energy and Resources Minister Bill Boyd congratulated both girls in a news release.

“We have had lots of phone calls,” she said. It was a big deal.

“We were really proud of both of them. They are a wonderful group of Grade 8s and very talented in many ways. They are awesome role models for our students as well.”

Burkell said not many of her students’ parents work in the oilpatch, but she says her school “is a very aware group of students,” adding that other students won a conservation award last fall at the time of the art project.

“When they did the project they were doing some work with energy conservation as part of their science project.

“Their teacher read about the contest and felt this was a good follow-up to what they were doing in class.”

The Energy and the Environment Art Contest has been running since 1991, encouraging students in Grades 1 through 8 to depict wise energy use and conservation through artwork.

NRCan selects a national award winner and the provincial government picks a second-place award recipient from among the many notable entries.

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Saskatoon – Creativity is the latest form of renewable energy being marketed by the Ministry of Energy and Resources.

Two students from the same Grade 8 class at Prince Philip School in Saskatoon are the winners of the 2010 Energy and the Environment Art Contest announced by Energy and Resources Minister Bill Boyd on June 18.

This annual contest is sponsored by Natural Resources Canada (NRCan) that selects the national winner and is co-ordinated in the province by the Ministry of Energy and Resources.

The theme of the contest is to illustrate energy conservation and efficiency.

The winning artwork of school girls Kyra Mazer and runner-up Payton Burkhart was chosen as the best of 1,000 entries from Saskatchewan students in the national competition.

“The lifestyle changes suggested in the winning artwork could be easily adopted by anyone in our province,” said Boyd.

“The students know that even small changes can make a big difference to energy conservation and the environment.”

Mazer’s top entry entitled “Clear, Clean Day” will be featured in an upcoming Energy and the Environment Poster being published by NRCan and distributed to teachers across the country.

Her artwork along with Burkhart’s piece called “Conservation Around the World” will also be showcased in the Youth Art Gallery on the Climate Change Saskatchewan website.

For having the first place pick, Mazer’s artwork earns an additional posting on the NRCan educational website at www.kidsclub.nrcan.gc.ca.

The students received their awards and prizes of electronics, books and laminated copies of their winning entries at the Prince Philip School Awards assembly. A $300 donation was also made to the school’s library.

Boyd was unable to make the presentation in person, but principal Nancy Burkell read a speech on his behalf congratulating both girls and the school.

covered about a 5 km segment of the highway that straddled either side of the Saskatchewan-Alberta border.

On June 20, a section of the west-bound lanes was completely destroyed and a portion of the east-bound passing lanes were severely damaged during a flood 5 km west of the junction of Highway 21 However, the roads in the areas were still hurting for the flooding. “Right now, all the roads are washed out,” he said. The rural municipalities of Big Stick and Maple Creek were hit the hardest, he said.

A lot of wells are in low-lying areas, and couldn’t be accessed, even 10 days later. “The water is still high, even now. The creeks are still running high. It blew a lot of roads out,” he said. ɸ Page B22

52016700•06/25/10

This artwork called “Clear, Clean Day” by Kyra Mazer, a Grade 8 student from Prince Phillip School in Saskatoon is the top entry in Canada for the 2010 Energy and Environment art contest.

Maple Creek – The flooding that hit Maple Creek and area and cut off Highway 1 on June 19 didn’t faze a local coiled tubing operator too much. That’s because it was almost too wet to work.

“It was too wet everywhere,” reported Danny Holmedal, owner of Maple Creek Endless Tubing. The company operates a fleet of 12 coiled tubing trucks The work they were able to accomplish was north of the community, and not affected by the highway closure.

“We’re back working now,” he said on June 29, three days after the highway was reopened as a two-lane highway for three kilometres.

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PIPELINE NEWS August 2010

It's wet everywhere you go ɺ Page B21 A lot of wells are in low-lying areas, and couldn’t be accessed, even 10 days later. “The water is still high, even now. The creeks are still running high. It blew a lot of roads out,” he said.

Holmedal said he had never seen anything like it in the 25 years he had been there. “In a couple weeks, they’ll have it all fixed,” he forecast.

While the shop and trucks were spared, many employees had water in their basements.

By July 15, the Ministry of Highways had installed new crossovers and opened them to traffic on Highway 1 west of the junction with Highway 21.

The crossovers will allow westbound traffic to transition to and from the east-bound lanes while the westbound lanes are rebuilt.

The westbound lanes at Eagle Valley were destroyed during flooding on June 19.

"Unprecedented flooding and extreme weather events have caused significant damage in many areas of the province and the provincial government is working to address the needs of Saskatchewan people as quickly as possible," Minister of Highways and Infrastructure Jim Reiter said in a release.

"The ministry's crews and contractors worked hard to reopen the Trans Canada Highway and we will work just as hard to restore four-lane service."

The previous crossovers were temporarily established on existing approaches, requiring westbound traffic to negotiate near-90 degree turns to transition to and from the westbound lanes. Because of this, Long Combination Vehicles (LCVs) were unable to use the crossovers and had to drop part of their load before continuing westbound.

LCVs are tractor-trailer units with two or more trailers. The new crossovers will accommodate passenger vehicles, recreational vehicles and all legal dimension and permitted trucks, with the exception of overweight and over-dimen-

sion loads.

At the same, work continues to rebuild the westbound lanes and make permanent repairs to the eastbound lanes.

Design work for the rebuilding of the westbound lane continues.

The ministry anticipates reopening Highway 1 to four-lane traffic this fall.

Portions of Highway 1 west of Maple Creek were completely wiped out. Photo courtesy Saskatchewan Ministry of Highways.

PIPELINE NEWS August 2010

B23

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C-Section

PIPELINE NEWS

August 2010

Saskatchewan’s Petroleum Monthly

Lloyd’s transportation plan keeps oil Àowing by truck

By Geoff Lee Lloydminster – Go with flow. That could be an appropriate theme for the City of Lloydminster’s 10 year Transportation Infrastructure Master Plan that aims to ease the movement of heavy oilfield traffic in and out of the city.

The plan, expected to be finalized by July 31, includes a list of strategic projects that will save oil companies time and money getting to and from wellsites and easing rush hour bottlenecks.

The projects range from future traffic signals, road extensions and widenings to a Highway 16 bypass at the city’s south end through Alberta and Saskatchewan.

In the meantime, stop and go traffic is the order of the day as summer road construction is underway on both sides of the border, including a new ring road for oilfield and industrial vehicles as noted in the master plan.

In fact, the city launched a Name That Road Contest with an entry deadline of July 16 to focus attention on ring route upgrades.

Improvements include a $3.3 million widening of 40th Ave. to four lanes on the Saskatchewan part of the ring road with an

Highway 16 through the western part of Lloydminster is undergoing reconstruction including some concrete pads to prevent rutting from heavy trucks.

extension of 52 St. “A large portion of traffic on that route is oilfield-related,” said Kirk Morrison, the city’s transportation and public works engineer who adds the cost is shared by Saskatchewan, the federal government (Building Canada Fund) and the city.

Work is also due to

a new technology called foamed asphalt,” said Morrison. “That rehab work is very much oilfield driven with the truck traffic on that.”

Both ring road projects are contracted to ASL Paving Ltd. of Lloydminster.

Mayor Jeff Mulligan says the 12th St. rehabilitation project with have

the most impact on eastwest oilfield traffic on the ring road.

He adds the key is to have traffic lights installed at 12th St. and Highway 17 – an $800,000 expenditure earmarked in the master plan for 2012.

“Not only do we need to fix the road, but we have to figure out

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begin in late August reconstructing the 12th St. southern leg of the ring road from Highway 17 east to 40th Ave. toward the Husky Upgrader.

This project will cost $700,000 with funding from the federal/ Saskatchewan Gas Tax fund.

“We are reconstructing that road with

how we are going to handle the traffic at the interchange,” he said.

“Today agriculture and oil traffic tends to migrate to places where there are controlled intersections.

“Time is money. We just have to make sure at a couple of pressure points – we make that ring road so that it works well for them. That keeps them off of Highway 16 which is light after light after light and very busy.”

The ring road will also reduce the chance of accidents involving trucks carrying toxic or hazardous materials.

“If we can get people and particularly hazardous wastes around the ring road where we have predominately industrial traffic, that’s good,” said Mulligan.

Work is also proceeding on a $3.3 million reconstruction project of Highway 16 through the city, from 62nd Ave. to the western city limits funded by the Alberta Municipal Infrastructure program.

The work contracted to Alberta Asphalt Enterprises includes the construction of concrete pads at a couple of key intersections and some repairs to sections of asphalt laid last summer where it transition to concrete. ɸ Page C2

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Clearing bottlenecks on Lloyd roads ɺ Page C1 Morrison believes all of the ongoing road projects will help oilfield and industrial traffic to move quicker and safer within the city.

“We definitely have more work to do,” he said.

“We have a 10-year list in the master plan. All of those projects will certainly help oilfield traffic as well,” he said.

“Traffic is one of those things everyone experiences so council gets a lot of feedback on anything transportation related. It’s not the only challenge the city has but it’s certainly the most prominent.”

Mulligan campaigned for mayor making traffic improvements his top priority.

“When people incur the construction they don’t know we are taking care of it, but when it’s done people will get to drive across something that works better,” he said.

“If we can move people around and handle the growth that’s projected for 10 years then they will realize we put a lot of energy and resources into it.”

His commitment gels with public input into the master plan calling for priority improvements to the Highway 17 north-south route and the construction of Highway 16 bypass.

The plan calls for a $33 million Highway 17 cou-

plet that will add capacity to Highway 17.

“We have real traffic problems for a 12 to 20 minute period in the morning and in the evening,” said Mulligan. “Outside of that it’s really not bad.

That doesn’t help people who have to get to work and get home from work.

“If we get the right grants and the provinces together, that is definitely something that is going to get done.”

Consultant ISL Engineering and Land Services recommended the couplet option to the city as the best way to improve peak traffic flow on the northsouth Highway 17 corridor.

“Right now, we’ve only got one lane in each direction,” said Morrison. “By building a couplet, we will get two lanes northbound and two lanes south-

bound. It will reduce wait times and improve traffic flow.”

Meanwhile, Alberta Transportation has completed the repaving of 23 km of Highway 17 north to Highway 45 including the construction of a passing and climbing lane.

“It looks great,” said Mulligan. “If you take that road to Alcurve (Highway 45), there is a passing lane which makes quite a bit of difference.

That was a dangerous strip of road. The safety considerations that they put into it are extensive.”

Alberta Transportation is also planning to make similar improvements to a 22 km section of Highway 17 south of Highway 619 later this summer.

As for the Highway 16 bypass project, Morrison says don’t expect anything concrete to happen soon.

“Right now, it shows up on Alberta’s 20 year capital plan,” he said.

“The city has had recent discussion with the Province of Alberta and further discussions are planned with both provinces upon the city finalizing the transportation master plan by the end of July.

“The bypass opens up opportunities for industrial sites in the south part of the city and will save 20 to 30 minutes on a cycle for oilfield truck traffic travelling though Lloydminster.”

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PIPELINE NEWS August 2010

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Thermal imaging has an eye for unsafe vehicle components Area superintendent Walter Cardinal says this Thermal Imaging Unit is an effective prescreening tool to Ànd potential faulty vehicle components. It can also be used for dangerous good inspections and law enforcement inspections.

Transport ofÀcer Ronald Feist demonstrates how the Thermal imaging system detects potential safety defects on commercial vehicles during a driver appreciation day at the Vermilion Vehicle Inspection Station on Highway 16.

Vermilion – A Thermal Imaging Unit from Alberta Transportation is helping commercial vehicle inspectors to pick out faulty vehicles in line at vehicle inspection stations.

The mobile unit has been in use at the Vermilion Vehicle Inspection Station (VIS) for the past six months as a pre-screening device to detect defective brakes, tires and other mechanical components on commercial vehicles.

The time-saving technology was demonstrated during a driver appreciation day at the Vermilion VIS June 23 that attracted 400 to 500 commercial truck drivers.

“I think these are great events,” said area superintendent Walter Cardinal, who led the Pipeline News on a tour of the Thermal Imaging Unit and various other safety exhibits on hand.

“It’s also a great op-

portunity for drivers with questions. We have a lot of officers on hand today and we are trying to help them out,” noted Cardinal.

“The Alberta Motor Transport Association is here today and they are giving out a lot of information, and there are a lot of people on hand to show off the tools that we use to do our safety work on the highways.”

The Thermal Imaging Unit is parked beside the drive-up ramp and includes an external camera, thermal imaging system software, an inspection documentation system, and a workstation with monitors inside a custom designed van.

The scanner uses infrared thermal technology to measure the “heat signatures” of vehicle components that might fail due to such things as overheated bearings, under inflated tires or retread separation.

“It’s kind of a pre-

scan for us. If everything looks good on the scan, we can let that truck go and wait for another one that may have issues,” said Cardinal.

“There is no sense stopping a guy to do a mechanical if everything looks good.”

The technology is based on the knowledge that vehicle parts get hot before they fail, making infrared cameras costeffective and valuable diagnostic tools in commercial vehicle enforcement applications.

“The system looks for heat sources on the trucks – places where you want to see heat like on brakes,” said Cardinal.

“It will scan as the truck goes by. You can see the brake linings.

“If they are showing up white, that indicates heat and that’s good.

The brakes cause friction and heat, and we can see that.

“If the brakes show up black, it’s an indica-

tion that’s there no friction, and that that brake is possibly not functioning properly.”

Alberta now has three Thermal Imaging Units in use and Cardinal says they are very accurate and efficient and can also identify overloaded units and even false compartments.

“It’s made a big difference. If everything looks good, we are not holding people up. We are just looking for the bad ones,” he said.

The units were designed to conduct thermal image observations on commercial vehicles with registered weights of 4,500 kilograms or more, but visual inspections are still the order of the day at the Vermilion VIS. “Safety is our biggest concern,” said Cardinal.

“Trucks come in and report, and we monitor their weight, and if we see something on the truck, we may pull it in and do mechanical inspections.

“We are not all certified mechanics, but we are all certified under the Commercial Vehicle Safety Alliance criteria and that’s what we enforce.

“We are basically

doing a glorified walk around. We are checking things that are obvious on suspension problems, push rod travel for brakes, flat tires – things that are obvious safety concerns.”

Inspectors may also check for valid documents including a driver’s licence, vehicle registration, and insurance and request a look at log books.

“The main issue is hours of service on the drivers exceeding the limits they are allowed to drive,” said Cardinal.

“Depending on the severity of how many hours – once they’ve exceeded, they will usually be shut down for a period of time until they can come back into compliance.

“We will review the logs books and determine when they can come back into compliance.”

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PIPELINE NEWS August 2010

PIPELINE NEWS August 2010

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Husky’s safety orientation st feted at 31 Telly Awards

By Geoff Lee Calgary – With the Lloydminster Husky Upgrader turnaround due to begin in September, safety will continue to be on the front burner, but it may not garner the same high level of attention it did for all of Husky Energy’s operations in June.

That’s when Husky’s online safety orientation program for its corporate staff and contractors was feted at the 31st annual international Telly Awards in New York City.

Husky’s online safety orientation, called “Get Your Head in The Game,” received two international bronze awards for achieving excellence in both multi-media production and online training.

The Telly awards honour outstanding achievement in online, television and video productions from around the world with more than 13,000 entries submitted each year.

“Safety is a top priority for us at Husky Energy, so we’re delighted to be recognized for effectively communicating our commitment to be a responsible operator,” said Ron Butler, vice-president of corporate administration.

“The ‘Get Your Head in the Game’ online orientation program is a comprehensive tool to ensure our office and field workers are informed about important safety policies and procedures.”

The interactive program features two engaging hosts who deliver important corporate and locationspecific safety information to Husky workers across Western Canada.

The program also includes sections on respectful and diverse workplaces, incident reporting, and maintaining hazard-free workplaces. It further en-

gages participants by asking various questions at the end of the respective sessions, and requiring a response.

The Telly Awards recognize the level of interactivity in the production, the educational component and how the respondents are tested and tracked on their knowledge.

“At Husky, we never stop raising the bar and are committed to continuously improving our health, safety and environment programs,” added Kevin W. MacDougall, Husky’s health, safety and emergency

response manager.

“This is an example of an engaging and effective interactive safety program.”

MacDougall notes winning the Telly Awards will likely generate even more support for Husky’s online safety orientation, which has already received more than 10,000 registered participants.

The interactive program was produced by Edmonton-based Dynacor Media, which has worked with Husky Energy since 1997 to develop safety and orientation-themed programs.

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PIPELINE NEWS August 2010

Heavy oil show and symposium to draw thousands to Lloyd

By Geoff Lee Lloydminster – If you are planning to break into the heavy oil business, begin your search at the 2010 Lloydminster Heavy Oil Show at the Stockade Convention Centre Sept. 15-16.

The show is being held in conjunction with the 2010 Heavy Oil Technical Symposium run by the Lloydminster chapter of the Society of Petroleum Engineers at the same location.

The overarching theme is “Challenges, Opportunities, Change” with heavy oil technology and innovation at the forefront of the symposium and oil show.

This leading edge technology exhibition is a great opportunity for visitors to discover and network with the substantial knowledge base that exhibitors bring to the show.

That’s the promise of the Lloydminster Oilfield Technical Society that sponsors the popular oil show with more than 225 exhibitors on site.

“The show has been going on for so many years that we have a lot of repeat exhibitors,” organizing chair Scott Black.

“We always have a waiting list of 15 to 20 exhibitors that want to get into the show,” The heavy oil show is held every two years and is billed as an opportunity for exhibitors to demonstrate to Canada and the world how heavy oil can be produced in a manageable and profitable manner.

“It’s very well attended,” said Black. “We get anywhere from 5,000 to 7,000 people over the two days.

“We draw from all over and it’s open to everyone. It’s not an invitational show like you get in Calgary. There is no cost to get into the show.

“I don’t know if this one will be the biggest ever but we strive for that every two years to make it the biggest and the best.”

The technical symposium presentations on both days will break at noon to allow attendees to tour the indoor and outdoor heavy oil exhibits.

Registration for the Lloydminster Heavy Oil Technical Symposium, held in conjunction with the Lloydminster Heavy Oil Show Sept. 15-16, is limited to 200 people.

File photo

“We want exhibitors to show what changes have arisen over the last decade, and the new opportunities that are arising throughout the industry because of heavy oil,” said Black.

“There’s a lot of innovation that’s come out of Lloydminster, and a lot of technology has been developed here that’s being used worldwide.”

Scott says the show is also an opportunity for oil companies to let people know what it is they do “out there” and to tweak the career interests of the younger generation.

“It gets the interest of ‘up and comers’ and youth in the industry to see what it is we go and how the oil is being produced and what a service rig is and what a drilling rig is,” said Black.

Black is the Lloydminster branch manager of Guardian – a Shawcor company that inspects oilfield tubular with nine branches in Alberta and Saskatchewan.

“We are inspecting the tubular being used to drill the holes and produce oil and the natural gas,” he said.

Black has been coming to the oil show for years, and he enjoys every minute of it.

“I enjoy the camaraderie of everybody that’s there and going through the different booths, and talking with the exhibitors and finding out what’s going on,” he said.

As this year’s chair, he says his role is “to make sure everything falls together and the show comes off and that all the different facilities are being filled.”

The oil show will kick off with a banquet and opening ceremonies Sept. 14 with guest speaker Murray Cobbe, executive chairman of Trican Well Servicing Ltd. Registration for the two-day technical symposium is limited to the first 200 applicants from all over the world who come to Lloydminster to learn about the latest heavy oil technology and research in Alberta and Saskatchewan. ɸ Page C7

PIPELINE NEWS August 2010

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15 to 20 exhibitors on waiting list for heavy oil show ɺ Page C6 The presentation topics bear academic titles such as “Results from acid stimulation in Lloydminster – SAGD applications,” by Husky Energy and “Under balance wellbore cleanout and production evaluation technology,” by Quantum Jetvak.

There will also presentations from the Saskatchewan government on changes to well licensing applications and gas flaring regulations among the seven presentation topics on the schedule.

This year’s symposium chair is Mike McIntosh.

The 2010 symposium and oil show could break attendance records with more than 700 trades people in town during September for the Husky Upgrader turnaround.

“We are hoping we get a lot more of the Husky people and everyone else involved in the turnaround to come over and have a look at the show,” said Black.

Black is also hoping the ongoing renovations at the convention centre are complete on time.

“It’s going to very tight last time I talked with anybody. More space will be available for seminars. We are not going to take any more space than we normally have but it’s going to make it flow better and easier around the building.”

Using the rails Husky Energy’s heavy oil operations in Lloydminster also uses CP rail to ship their petroleum-based products. Currently, Husky ships about three cars a day of diesel fuel from the upgrader, and from 10 to 20 rail cars a day of asphalt from the asphalt reÀnery.

Photo by Geoff Lee

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PIPELINE NEWS August 2010

Highway 40 from North Battleford to the Alberta border is being repaved to primary weight status.

Primary weights spur new road upgrades

By Geoff Lee Regina – Saskatchewan’s 2010 summer highway construction projects will slow traffic but speed up business when the work is done with more primary weight roads available.

Ministry of Highways and Infrastructure crews are targeting the completion of 1,149 km of major highway upgrades and more than 900 km of maintenance work this season to support economic growth and improve traffic flow and safety.

The work includes 470 km of rural highway upgrades to allow oilfield shippers and manufacturers to haul their products on heavy haul corridors with a

15-50 per cent increase in load capacity.

The move to upgrade more roads and highways to primary weight status is in keeping with the ministry’s Rural Highway Strategy to ensure the rural highway system keeps up with the pace of economic development and public expectations.

“When we developed the strategy we looked at a number of roads to see what their capability was to carry additional weight without reconstruction,” said George Stamatinos, Assistant Deputy Minister, Policy and Programs.

“We were able to identify 6,000 km of gravel and paved roads that could go to higher weights for nine months of the year. ɸ Page C9

PIPELINE NEWS August 2010

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Going after the "low lying fruit" ɺ Page C8 “We still have to weight restrict them for April, May and June. That really helped everyone, not just the oil industry.

“Those were what we called the “low lying fruit” and after that, reconstruction of some sort would be required to bring the remaining roads over time and on a priority basis to primary weights.”

The ministry meets with a Rural Highway Advisory Committee to prioritize road upgrades based on a set of 12 criteria including truck traffic volume and local economic activity.

Topping the list in 2010 in the Lloydminster area is a $23.9 million project to pave and widen about 100 km of Highway 40 for the purpose of allowing primary weight.

The ongoing work involves paving and widening the highway from the Alberta border to about 16 km west of North Battleford.

The project is cost shared between the province and the federal government’s Infrastructure Stimulus Fund (ISF).

The bridge over Cut Knife Creek will also be replaced at a cost of $1.4 million funded by the province and ISF. Busy Highway 303 is getting good use with its $15.2 million makeover to carry primary weights. The project was completed in June and involved 45 km of paving from Lloydminster to Highway 21.

Earlier this year, crews completed the $5.9 million paving of 23 km of Highway 17 north of Lloydminster to improve the highway for extended primary weight traffic usage.

Stamatinos notes the feedback he’s been getting on the primary weight improvement to roads is positive and added, “We’d sure like to see more

This summer 470 km of rural highways are slated to undergo upgrades to primary weights with no road bans.

done quickly, but it’s a resource issue.

“For the economy to continue to grow and to generate the kind of revenue for road construction, you need to keep the roads there and allow industry to operate efficiently.”

More improvements and primary weight roads are on the radar in the ministry’s updated Five-Year Capital Plan for improving Saskatchewan’s transportation network.

“Over the past three construction seasons, our government has invested $1.7 billion, including $113 million in federal stimulus funding, for maintenance and new construction on our provincial highway system,” said Highways and Infrastructure Minister Jim Reiter in announcing the plan.

“Our current highway’s capital budget of $250 million is going to continue that momentum.”

Projects are chosen for the fiveyear plan based on economics, safety, traffic, road purpose (for example, hospital or school bus route) and other factors.

The five-year plan has been developed as a flexible document that considers emerging priorities.

“I want to thank all of the transportation stakeholders who have helped us develop a blueprint that’s proactive and transparent,” Reiter said.

“It allows industry, local communities and our building partner, the Saskatchewan Heavy Construction Association, to plan for the future.”

The five-year projects range from paving and repaving to bridge rehab and replacements.

This year’s provincial highway capital improvement budget is $551 million, the second largest transporta-

tion budget in Saskatchewan history, bringing the three year total investment to $1.7 billion.

“The scale of this investment, coupled with some long-term planning continue to allow our members to meet the infrastructure needs of taxpayers and create an environment that will sustain our economic growth,” said Saskatchewan Heavy Construction Association president Shantel Lipp during the budget roll out.

“Long-term investments and early tendering all help our members to plan ahead, get more crews in place and ramp up to meet the demand.

“This activity is also an investment in the health of our economy as there is a ripple effect from the investments our members make in employees, equipment and services.”

The impressive list of projects includes 42 bridge and culvert replacements in the province including improvements to support economic growth and safety in northern Saskatchewan.

“Actually we are pretty pleased considering the weather,” said Stamatinos about this year’s projects.

“We are fortunate to be able to capture federal funding under Building Canada and Infrastructure Stimulus Fund money that has been widely publicized.

“We are very pleased to be able to participate in those two federal/provincial initiatives for infrastructure.

“The down side is the weather.

It’s so darn wet that we are probably a month and a half to two months behind on our construction season,” said Stamatinos.

“We will go as late as we can and what can’t be done will be carried over to next year. The weather has been challenging. Nothing has changed, it’s just delayed things.”

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PIPELINE NEWS August 2010

Partner Neal Beznoska holds up a .22 caliber “gopher” gun.

Lloydminster – Magnum Gun Outfitters (MGO), a new gun shop in Lloydminster hopes business will be booming from the sale of firearms and outdoor gear to lifestyle hunters and gun buyers in Western Canada including those with oilfield jobs.

“There is a big crowd of hunters from the oilpatch,” said Neal Beznoska, who is business partners with Scott Wilkinson and Rick Knight from Lloydminster at MGO. “The guys make some good money and they have some time off so they can enjoy the outdoors and nice equipment. Hunting is definitely a lifestyle for a lot of oilpatch workers.”

Beznoska worked at the Husky Upgrader for 17 years and left in 2008 to help his wife Pam manage their Northern Factory Workwear shops in Lloydminster and Saskatoon catering to oilpatch families.

He says the inspiration to invest in a gun shop “was just through a couple of guys getting together and discussing it over coffee and coming up with an idea that Lloydminster sure could use a hunting store.”

MGO opened this summer boasting the largest selection of guns in Western Canada with more than 450 guns on display and the largest selection of hand guns in the Midwest.

Some the of brand name guns in stock are from Weatherby, Browning, Remington, Savage, Ruger, Thompson Center, Sako, Tikka, Winchester and Beretta.

“We had a really good response,” said Beznoska during the first week of the launch.

“People are glad to see a store in town that carries this selection and prices that are on par with our competition.

“We are trying to target the hunter, the target shooter, the outdoor enthusiast, the camper and the outfitter – anybody who spends time outside.

“I have been hunting most of my life. It’s not work. It’s a lot of fun to be here.”

MGO is also expecting a big increase in the membership of the local pistol club since hand guns can only be sold to people who belong to a shooting club or to a collector.

Judging from a few of the unedited comments, posted on the online forum of Alberta Outdoorsmen Magazine prior to the opening, MGO’s marketing plans are reaching their target audience.

“Rick gave me a tour of Magnum Guns yesterday, and I was like a Treeguy at an Arborist’s convention,” wrote a fan identified as kenO7AOVette on the forum.

“Well, we all had clothes on and were sober, but it was still fun.”

Ditto the enthusiasm from Fordtruckin who wrote, “Magnum Guns eh? I’ll have to stop on by next time I head up to visit my parents! SWEET!” ɸ Page C11

PIPELINE NEWS August 2010

ɺ Page C10 Mudbug is another potential customer who posted this comment: “This new shop sounds like a good excuse for a roadtrip.”

The “Man Store” as the owners dub MGO, consists of 3,200 sq. ft. of scopes, binoculars, range finders, spotting scopes, gun safes, ammo, reloading, knives, clothing, footwear, camping accessories, tents, sleeping bags, hunting blinds, decoys, backpacks – the list goes on.

MGO also carries a full product line of Browning and other top quality products from Swarovski, Bushnell, Leupold, Buck Knives, Leatherman, Rocky, Kenetrec and Arctic Shield.

The store is located off Highway 16 in the city behind the Husky Travel Centre, and not far from happy hunting grounds.

“It’s got a good location on the border between Saskatchewan and Alberta with good waterfowl, deer, moose and elk all within the vicinity,” said Beznoska.

“Locally, hunting is probably split evenly between Saskatchewan and Alberta. Guys will go all over. People will travel to up north to go moose hunting and go down south for antelope, and around town for upland game bird hunting and geese.”

Chartered accountant Scott Wilkinson describes himself as a silent partner “with a love for everything outdoors” including hunting.

“I won’t be here on a daily basis but I do go in and help out in the evenings,” he said. “I will be doing the financial stuff as well. I think the store will be well received.”

Store manager Rick Knight says a grand opening will be held off until September when the hunting season starts and it could be timed around the Lloydminster Heavy Oil show Sept. 15-16.

“It gives us time to get into our routine and get all the bugs out of the system,” he said.

Knight says the popularity of the annual Gun Show and Sale held this year in January at the Exhibition Grounds helps to prove a new gun store could be a viable business.

“The annual gun show is the second largest gun show in western Canada second to Calgary. That let us know there was a void in market for a gun store,” he said.

“There is a big market for hunting in this area.

I’ve known that for years and years. It’s unfortunate that a hunting shop hasn’t been able to survive in this town. Hopefully, we will do better.

“The key will be variety and selection and service. Service is key to any industry here. It means being able to help the customer and having knowledgeable staff.”

MGO has five employees who are all working on acquiring their Possession and Acquisition and Restrictive Licences as soon as possible.

Knight says customer service does not mean referring customers to his favourite hunting areas.

“No, that’s trade secrets,” he said, noting that’s like giving away the location to your fishing hole.

He worked at CE Franklin as a sales manager for six years before leaving earlier in the year and jumping at the opportunity to partner in the gun shop.

He also owned his own machine shop for years, and says he knows from experience, that a lot of oilfield workers are hunters, but stresses it’s not just oilfield workers who hunt.

“It’s a broad spectrum of the population,” he said.

Asked if he misses the oilfield, he replied with his own question, “Do we ever leave the oilfield?

We’re here. It’s everyday part of life. Once you are

C11

here, you are in it. You would have to move another part of the country to miss it.”

As for his new job he joked, “It’s a job. It interferes with my hunting.”

Manager Rick Knight shows a riÁe to a customer.

Magnum Gun OutÀtters stocks more than 450 riÁes, shotguns, and hand guns.

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PIPELINE NEWS August 2010

Quite a few changes in 2010 engine

Chris Erickson was one of several technicians to attend a four day clinic on the new ISX15 EPA 2010 diesel engine taught by service trainer Doug Crompton. The engine is wrapped for shipment to Crompton’s next stop in Lethbridge.

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Lloydminster – The beef on a bun is worth a mention, but the main news story of Cummins’ annual customer appreciation day held at the Lloydminster dealership is the new ISX15 EPA 2010 diesel engine.

A full scale training version of the engine was wrapped and ready for shipment prompting questions to service trainer Doug Crompton who uses it to deliver four-day training courses to Cummins technicians in Western Canada.

He timed the Lloydminster course to enjoy a meal on a bun in late May before his next teaching stop in Lethbridge.

“I train all of our dealers and our own distributors,” said Crompton who is based in Saskatoon. “Mechanics have to be trained on full repair because it’s a new engine with new technology.

“I teach the technicians how it works, all the new technology we put into it, and how to diagnose and repair it.

“We have 14 branches in Western Canada, and I visit all of them, and set up training courses in all our dealerships and distributors.

“I think the engine is one of the best we have produced. Our technology is very advanced. We are using the technology that has been in produc-

tion since 2006 in Europe.

“The engine is already in trucks and on the road. It’s already got about 22 million miles of proven technology on it.

“The thing that makes it stand out from our previous engines is the 2010 emissions technology.”

Cummins’ new Selective Catalytic Reduction technology has been proven in over 200,000 European vehicles and uses Diesel Exhaust Fluid to achieve near-zero levels of NO x emissions.

The proven Cummins Particulate Filter reduces particulate matter by over 90 per cent.

The engine also features a single higher-capacity Electronic Control Module that controls everything from air intake to exhaust after treatment for peak performance and near-zero emissions.

“It’s a got a high pressure common rail fuel system in it too,” said Crompton. “It gives us high injection pressure so it gets better fuel mileage and less emissions output from the engine.”

The Cummins VGT Turbocharger comes with electric actuation that allows infinite adjustment, providing the exact amount of boost necessary for superior response. ɸ Page C13

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Cummins’ teaching engine loaded with 2010 emissions controls ɺ Page C12 The 2010 diesel engine powers oilfield vehicles made by Kenworth, Volvo and Peterbilt and are available in Western Star trucks.

They are so new to the domestic market that Lloydminster technician Chris Erickson hadn’t seen one before Crompton’s clinic engine.

“They are just starting to hit the trucks now except for our test units that have been out there for awhile,” said Erickson.

“My first impression is that it’s a clean engine and it’s easy to work on, and everything is accessible and, of course, that depends on what chassis it’s in.

“The base engine is pretty much the same as last year. It’s just learning all the newer changes on the top end of it. As long as you have a manual you can figure it out.”

The Cummins ISX15 features 400 to 600 hp and 1,450 to 2,050 lb-ft of torque making it an engine of choice for the oil and gas grunt work.

“A lot of people in the oilpatch use our engine because they use our highway tractors,” said Crompton.

“It’s the biggest selling diesel engine in the market today. Eventually, the engine will be used on the industrial side too.”

Crompton has been a mechanic for more than 40 years and has been teaching Cummins’ mechanics for the past five years.

“I get to meet a lot of interesting people,” he said. “I get to meet all of the technicians from all of the different dealerships and meet people from all over the world from Cummins.

“I travel to destinations that I have never traveled to before. I like learning and teaching what I’ve learned, and I like portraying it to the young guys.

“Training involves power point presentations, hands on work, video presentations. We have actual pieces from the engine that they can examine and test.

“Training started in January, so it’s been going steady just about every week so far. I trained two technicians from this branch and five guys from our sur-

rounding dealerships.”

Erickson says having the engine open to work on is a big advantage for training.

“A guy learns how everything ticks and moves inside the engine and it gives us an upper hand on troubleshooting any repairs that need to be done,” he said.

“The course is really good considering there have been quite a few changes for our 2010 engine. It tweaks some of the issues that we had in our previous engine.

“Basically, we went over the new system and the changes to the engine. Anything that was changed we took apart.

“The major change is we went to a high pressure common rail fuel system which is better control on injection and better combustion for emissions. Also there’s more simplicity to the engine.”

Maintenance intervals are unchanged from previous years, and the engine is touted as delivering the lowest operating cost of any engine in its class.

“I think the way our technology is heading, it’s great for the world,” said Crompton. “The air coming out of the engine is actually cleaner that the air coming into it.

“If you live a city like LA where we have high emissions and smog, it will take that smog into the engine and what comes out is cleaner that what went in.”

The same day Crompton spoke about the new ISX15 EPA 2010 diesel engine, Environment Canada The ISX15 EPA 2010 diesel en- announced plans to harmonize regulations gine is virtually emissions free. curbing greenhouse gas emission from new heavy duty vehicle with U.S. regulations.

Draft regulations are due this fall and are expected to be implemented between the 2014 and 2018 model year.

Heavy-duty vehicles which include full-sized pickups, delivery vehicles, buses, freight vehicles, service trucks, garbage trucks, dump trucks, as well as tractor trailers account for about six per cent of total greenhouse gas emissions in Canada.

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PIPELINE NEWS August 2010

Highway 40 to be a primary truck pipeline Story and photos by Geoff Lee Marsden – The orange zone was in effect in mid-July on Highway 40 from Marsden west to Highway 17 where crews were upgrading and paving a section of the busy oilfield route to primary weight standards.

Approximately 100 km of Highway 40 will repaved to the higher standard by this fall in a project valued at $23.9 million cost shared equally between Saskatchewan and the federal government Infrastructure Stimulus Fund (ISF).

“Just from being out here, the majority of the traffic seems to be oilfield traffic,” said Kim Bonneau, project manager for Clifton Associates Ltd. from Saskatoon who was on hand to explain the project.

“I am sure they are a little annoyed by the delay, but delighted it’s going to be primary weights.”

While traffic is required to slow to 60 km/per hour when passing highway workers and crews, it will be smooth sailing for oilpatch and commercial traffic

when the work is done.

“It’s a main thoroughfare from Edmonton to North Battleford and south to Unity. There are no overhead power or utility lines on this road,” said Bonneau.

“We are widening the road for the increased truck traffic and then we are paving it. The design calls for a 50 mm overlay in the west end of the job and about a 100 mm overlay in the east end of the job.”

Further east, crews are working on replacing a 40 metre bridge near Cut Knife Creek, an additional $1.4 million project funded by the province/ISF. In the meantime, widening and slope repairs are being made in the Neilburg to Highway 17 section for increased safety.

“Parts of the road are too steep on the edges so we are making the slopes a 3 to 1 grade,” said Matt Harker a civil engineer from Clifton.

“It’s a little bit safer if traffic has to go onto the ditch.”

The slope work is being done by the Broda Group of Companies from Prince Albert. ɸ Page C15

Bob Kaschl the base coat foreman checks the volume of gravel applied to the shoulders.

PIPELINE NEWS August 2010

Three asphalt plants at work on Hwy 40 ɺ Page C14 Bonneau’s role as the construction supervisor is to ensure the highway is built according to the design and quality standard.

She overlooks the work of Potzus Construction Ltd. the main contractor from Yorkton who also supplies the traffic flaggers.

“We have been given a copy of the contract and we ensure the road is constructed as exactly as it was designed,” said Bonneau.

The asphalt is prepared at three asphalt plants set up along the project route.

At each plant the asphalt is mixed with sand and gravel and a liquid anti strip product to prevent the gravel from stripping from the asphalt.

“We test the quality of the materials and the quantity,” said Bonneau. “We have two labs – one at the asphalt plant (east of Marsden) to test the asphalt, and we have another by our field office called the soils lab, and we take samples of the gravel from the base and the sub base.”

The asphalt must be applied and rolled to a minimum 97 per cent density for longevity.

“Quality is very important. You don’t want the road to be breaking up in a year. Our goal is to make sure it has the design life that is was intended,” said Bonneau who communicates with Potzus crews.

“We are looking to make sure they are putting in the effort that’s required to make the road with stand up and it’s well compacted, “Today, we are doing some notching and widening. We notch it first and put in a sub base which has a looser spec gravel.

“Then we come back and overlay it with gravel and then we compact it. We put down a tack coat to seal it so it’s protected from the rain and so the asphalt will adhere to it.”

The section contract calls for the application of 300 tonnes of SS1, a slow setting, anionic emulsified asphalt primer or tack purchased from Husky Energy and 4,000 tonnes of asphalt product from Ambertec Ltd. in Macklin.

More than 200,000 tonnes of asphalt will be applied to the entire project.

“If the weather permits it should be done at the end of August,” said Bonneau. “We should be much further along now. The asphalt plant can put out about 3,500 tonnes a day, and we averaging much lower than that this year because of the rain.”

By July 12, six kilometers west of Marsden were complete.

On a bright note, Bonneau says crews have filled hotels in Chauvin Alberta and Marsden, Neilburg and Cut Knife in Saskatchewan, and other hotels on route will benefit as the paving moves east.

Clifton Associates Ltd. is an engineering, science and technology company with offices in Saskatoon, Battleford, Regina Lloydminster Calgary and Edmonton.

Michelle Hamelin with Potzus Construction Ltd. lights up the stop sign with her friendly smile.

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Checker Haley Bart from Clifton Associates keeps tabs on loads while heavy trafÀc approaches on one lane.

SEW EURODRIVE

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PIPELINE NEWS August 2010

Vermilion's new transportation Story and photos by Geoff Lee Vermilion –A lot can happen in a New York minute, and quite a bit a single day in the Town of Vermilion.

The day Mayor Bruce Marriott sat down for an interview about his town on July 19, a new Boston Pizza opened to the public.

There was also a buzz in the air about a town council item on the agenda the next night to pave the way for the development of a new oil tank manufacturer.

A new company called Leading Manufacturing Group Inc. plans to build an $8 million satellite shop on a 7.1 acre property north and east of Fountain Tire in the industrial park.

Lee Gottschlich the company president and CEO says he plans to build 750 and 1,000 barrels tanks for the heavy oil industry and eventually hire up to 65 full-time employees.

“Council approved the sale of a 7.1 acre parcel of land July 20 and construction is due to begin this fall.

Gottschlich says he picked Vermilion for his new business because, “it’s the crossroads of highways 16 and 41 with good access to the heavy oil leases.

“It’s got the apprenticeship college (Lakeland) there for welding apprentices,” he said.

“I am sure there are a number of trades people who live in Vermilion and work in Lloydminster, Kitscoty and Wainwright, and I will be looking to hire as many local trades people as I can,” Vermilion has attracted some small oil and gas service companies in the past few years and Marriott says interest in industrial land is picking up.

“Our land is what is attracting the oil and gas industry now. Our industrial land is a lot cheaper than

most communities. We’ve had companies come in that were up at Lloyd looking at their development costs versus what it would cost here.

“We’ve never increased our industrial land price over the last 10 or 15 years. Now we are starting to see some smaller oil and companies come into the

Vermilion Mayor Bruce Marriott has his plate full with a growth spurt in retail, commercial and industrial businesses.

community because of the price.”

Vermilion is also strategically located for heavy crude oil exploration and development. Oilfields in the Lloydminster, Wainwright, Cold Lake and Elk Point areas are easily accessible along Highway 16 and Highway 41.

Highway 41 is part of the Port to Plains Trade Corridor from Texas to Alberta and is a heavy haul corridor through Vermilion which includes a valued rail overpass built years ago.

“That’s a huge development,” said Marriott. “The transportation ministry of the government of the day foresaw that, and it really fits in well with the plans that the town of Vermilion developed. I just think that’s a huge impact for us.

“It seems anytime the government does anything on Highway 41 they are always widening it.”

The town celebrated the official completion in June of a $5 million streetscape improvement project from Highway 41 along 50 Ave., the main downtown street.

Project costs were partly offset by approximately $3.6 million in provincial and federal government grants.

The work included the installation of new downtown sidewalks and storm sewers along with new street lights, parking spaces, repaving, street furnishings and hanging flower baskets and planters.

“To complement that, we are adding directional signs in the community to tie all that in and make us more open to visitors,” said MaryLee Prior economic development officer.

“Most people say when you revitalize the downtown you keep your downtown alive. The revitalization makes us more attractive for more retail and even industrial businesses to move in.” ɸ Page C17

PIPELINE NEWS August 2010

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corridor opens doors to growth ɺ Page C16 The revitalization inspired a $2.5 million reconstruction of the Value Drug Mart store owned and operated by the Long family for more than 100 years in the downtown core.

Craig’s clothing store a few doors down has also been in business for over 100 hundred years.

“We have people travel from all over to shop at some of the specialty shops we have downtown and at the Lakeland Mall,” said Marriott who is in his first of office as mayor.

“What I like is you always see growth but it’s just a steady growth you can manage,” he said.

“Our infrastructure is the envy of a lot of communities our size.”

One man who is pro-growth is Larry Alward, the Lakeland College Park GM dealer whose business suffered a dip when General Motors went bankrupt in June 2009.

“We were experiencing growth up to this last year. It’s been a struggle to turn it around and come back. It’s coming. It’s starting to come back,” he said.

“The town needs to do something to create new business. It’s a wonderful location at the crossroads of two highways. That’s why it’s surprising it hasn’t being growing like every community around us.”

Not surprisingly, Prior notes her number one priority is to keep businesses and attract new businesses.

“With Boston Pizza coming in, we are hoping a couple of more franchises will come in. With our streetscapes I think we will see more retail moving in,” she said. ɸ Page C18

Above: Economic development ofÀcer MaryLee Prior stands under a hanging Áower basket afÀxed to new street lighting – part of a $5 million downtown streetscapes improvement project.

Right: Vermilion is ideally located at the intersection of Highway 16 and Highway 41 on a heavy haul corridor to heavy oil in all directions.

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PIPELINE NEWS August 2010

New houses are built in the Park Place Residential subdivision next to Vermilion Provincial Park.

The town is acquiring another 80 to 90 acres for residential housing for future growth. Walking trails connect all parts of the town to the park.

Long’s Value Drug Mart rebuilt their downtown store to keep in step with a streetscape revitalization project. The store is one of many in business for more than 100 years.

Agriculture is the driving force in the economy of Vermilion. Webb’s Machinery has been in operation in the community for more than 100 years. A new oil tank maker is coming to town.

Vermillion ɺ Page C17 A lack of commercial property fronting Highway 41 could slow growth, but Marriot is optimistic more property can be secured for new hotels or convenience stores.

“We are in the process to make arrangements to get highway commercial along Highway 41,” he said.

“We have motels and stuff there now, but we’ve had inquiries from several developers who would like to build a hotel or a convenience store or gas bar.

We need to get that going.”

Marriot thinks some land owned by Lakeland College adjacent to the town could be available now that the college is purchasing 1,447 acres of farmland west of the campus.

“That’s the next step to sit down with the college once they have their plans finished. Hopefully that will happen this fall,” said Marriott.

Marriott also cites the college as key reason why oil and gas companies want to locate in Vermilion.

“Lakeland College is definitely a contributing factor to growth,” he said. “With other assets coming in, oil and gas no longer has to be in a larger centre, and it’s cheaper for these companies and employees here. Housing is more affordable and we have great schools here.”

Council is selling lots in phase two of the Brennan subdivision is looking at acquiring an additional 80 to 90 acres of available subdivision land to meet the needs for the next 20 to 25 years.

“We will do it in phases,” said Marriott. “We would normally develop it at 100 to 120 lots at a time.”

Half of the new lots in the Park Place Residential subdivision backing onto Vermilion Provincial Park are currently half sold as the population rises from its last count at 4,472.

“There are a lot of people in town who work in the oil industry,” said Marriott. “They prefer travelling because they wouldn’t want to live in a busy community. These are young people with families.”

From July 29-31, the town will host more than 25,000 visitors for the annual Vermilion Agriculture Fair that is one of the biggest tourist attractions of the year.

Cross country skiing is also an economic driver in the winter on provincial park trails where former resident and 2002 Olympic gold medalist Becky Scott got her start.

“She’s always been our biggest promoter. She put us on the map,” said Marriott. “We get a lot of people skiing here knowing this is where she started.

Her mom and dad live here.”

PIPELINE NEWS August 2010

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Lakeland looks to industry to fund new power lab Vermilion – Lakeland College is banking on support from oil and gas industries to help fund the construction of a new power lab at the Lloydminster campus to meet a growing demand for its Heavy Oil Operations Technician (HOOT) program.

A new lab would also open the door to offer students a petroleum management diploma and additional oil and gas trades programming.

“If you look at where we need to go, we really need a separate building to put the HOOT program so we can grow into oil and gas technologies and move the power engineering,” said Alice Wainwright-Stewart, vice-president of Academic, Innovation and Research.

“We don’t have that type of facility right now. We are looking at building a new building on the campus that will be specifically for oil and gas technology.”

Plans for a new power engineering lab are carried forward in the college’s 2010-2014 business plan along with a strategy to partner with industry for priority capital building projects.

“It’s in the early stages, but it’s been in our business plan for past couple of years,” said Stewart.

“The demand is strong. We know there are industries that would come to the table. We just need to find out who they are and help us move forward.”

The business plan states “Lakeland’s current power lab is a great hands-on training tool, but the equipment is starting to show its age and is undersized, resulting in HOOT students having to go offsite to complete their power engineering training hours.”

Plans call for the construction of a new lab including a water testing and operations control room and a heavy oil operations lab with a maintenance section, simulation lab and a gas process lab.

The lab would also support classroom, lecture space, computer labs, a student lounge and faculty offices.

“A new lab would mean we could expand to a second year of the HOOT program and we could go into some needed program in oil and gas such as process operator and may be a water treatment program,” said Bert Samuelson, dean of trades and technology.

“We have been contacted from Suncor that they may want to look at doing a water treatment program. We don’t know where that’s going, but we are in the beginning stages.

“We welcome industry support. We won’t be able to do it without industry coming in and helping.”

Keyera Energy Management Ltd, a Calgary-based company that collaborative with Lakeland on a number of trades programs has drawn a conceptual plan for the new lab.

“It gives us something to say this is where we are going and this is what we would like to do,” said Samuelson.

The lab will enable students to graduate with a diploma and a third class power engineering certificate.

The plans for a new power lab and new oil and gas technologies programming got a boost in May when Lakeland received $2.3 million federal grant for applied research to integrate renewable energy and conservation technologies.

The five-year grant from the Natural Sciences and Engineering Research Council of Canada Canada’s College and Community Innovation program will be administered by Lakeland’s School of Environmental Sciences based at the Vermilion campus.

The campus offers environmental science degree, diploma and certificate

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programs including online renewable and conservation courses.

The grant will support the growth and use of renewable energy in the oil and gas, agriculture, trades and business sectors of the region in Saskatchewan and Alberta.

“The college is looking at expanding applied research to the oil and gas field,” said Wainwright-Stewart.

“That’s another area that’s wide open. When we get our new building, we can move forward on that as well.”

Students Terry Peters and Tanner Pidwerbesky work on an assignment in the boiler room lab.

File photo

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PIPELINE NEWS August 2010

Colonial Days Simulator helps Gibson to

avoid trouble on the road

Novlan Bros. Sales proved a Sterling truck makes an ideal parade Áoat during Lloydminster’s Colonial Days Fair parade on July 14.

Photos by Geoff Lee.

Wayne Ervin provides some initial instruction on Gibson’s driving simulator to Richard Lorenzana from TransCanada Truck Wash.

The new Thorpe Recovery Centre, currently under construction west of Lloydminster on Highway 16, got a public relations boost with this entry in the city’s Colonial Days Fair parade July 14.

Vermilion – Truck driving accidents happen in the oilpatch, but Gibson Energy believes it’s best they occur in the virtual world where no one is harmed and drivers can learn defensive skills for the road.

That’s the purpose of Gibson Energy’s Driving Simulator that consultant Wayne Ervin demonstrated to visitors during an appreciation day for truck drivers at the Vermilion vehicle inspection station on Highway 16 on June 23.

“We use it to try

to put our own drivers through,” said Ervin.

“We try to get it around all of the areas. We use it as a tool for new drivers.

We set up different scenarios.”

The trailer is equipped with two driving simulator stations set up like the cab of a vehicle with a set of video terminals facing the driver who steers, brakes and reacts to virtual driving scenarios.

“One is set up for a small vehicle,” said Ervin who runs the computer software.

“Basically, we put everyone in that one first just to get them more or less used to the screens.

The other one we set up as a big truck scenario.

“There is no score.

This is not a test for our driver. It’s a safety tool that we use and a driver training tool.

“We know it’s maybe not exactly like driving a real rig, but if we can do one thing for the drivers – set up a scenario whether it be on ice, avoiding a head-on accident, or traffic stopping in front of you or traffic

coming off an intersection – and save him an accident in real life, then we’ve accomplished what we want to do.”

Driver safety is paramount at Gibsons which has a truck fleet of more than 1,400 units dispatched from strategic all y-loc ated terminals throughout North America including Hardisty.

“We are always looking for qualified drivers and lease operators,” said Ervin, who is based in Calgary where he drive oilfield trucks for Gibson for years before turning to consulting and driver safety.

Ervin says his purpose at the appreciation BBQ was “just to operate the simulator to show it off for Gibson.

They asked me to come and operate it today.

“These are a lot of real life scenarios for guys driving in the oilpatch. We are striving to make Gibson drivers safer. Every little bit helps.”

Gibson primarily moves crude oil, asphalt, diluent, frac oils, chemicals, natural gas liquids (NGL’s), liquefied petroleum gases (LPG’s).

The company’s new affiliate Chief Hauling also transport sulphur, petroleum coke, gypsum and iron calcine.

PIPELINE NEWS August 2010

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PIC approved Àeets stand out for safety excellence

By Geoff Lee Vermilion – If there is a vanity plate for truck safety, the yellow “carrier excellence” version from Partners in Compliance or PIC means the most to trucking companies.

“Drivers who are respected in the industry are the best performers and it shows within the PIC fleets – low turnover rates and a very low violation rates,” said PIC’s northern Alberta coordinator Kim Hrushenski.

“Partners in Compliance is an excellence program for safety and compliance within the transportation industry – an Alberta based program, but not exclusive to Alberta based carriers.”

PIC is sponsored by the Alberta Motor Transport Association, (AMTA) Worker’s Compensation Board (WCB) and Alberta Transportation, and is working on developing reciprocal agreements with carriers in other Western Canadian provinces.

The program is designed to establish safety as a primary measure of excellence in transport, oilfield and bus companies and reward those with exemplary safety, maintenance and driver retention records.

“You have to meet pretty high safety standards to be a PIC member,” said Hrushenski who noted PIC doesn’t offer any safety courses itself.

“We are more about understanding a carrier’s existing program and deciding whether or not they are capable of entering the program.

“To get a carrier to that level, we certainly suggest they provide courses to their drivers. There is a lot of education available and we will help them become educated.

“The cost to develop a safety program that meets what the industry should be doing is a fairly substantial cost, but after entry into PIC – once you have achieved that level of safety and compliance –is very inexpensive.”

Some of the monetary benefits include an $11 reduction in the cost of every Alberta abstract and Hrushenski says carriers must pull an abstract at least once a year.

“For a major carrier that can be a substantial savings,” he said.

In addition, trucks utilizing a PIC transponder system enjoy a 98 per cent weigh scale bypass privilege.

Other membership benefits include a safety fitness rating of excellence, a fee waiver for all Commercial Vehicle Inspection Program shop licenses in Alberta, and unlimited no-cost Alberta carrier profiles from Alberta Transportation.

There are approximately 30 carriers with 6,400 units bearing the PIC plate recognized by peers as the gold standard of safety excellence.

“There were 5,200 units in the first reporting period of this year with zero out of service events,” said Hrushenski.

“Compare that with numbers after safety blitzes with 35 per cent to 50 per cent out of service numbers which is a targeted inspection.

“That’s where our carriers are excellent and they must stay excellent.”

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truckers during a drivers’ appreciation day at the Vermilion Vehicle Inspection Station on Highway 16.

The AMTA newsletter noted PIC applicants must score at least 85 per cent in both the Certificate

of Recognition and National Safety Code audits.

A company cannot be on safety monitoring during the 12 month period prior to the date of their PIC application, and must be available for site visits

by PIC officials as well.

Kim Hrushenski with Partners in Compliance (PIC) shows the safety excellence licence plate that provide member carriers with monetary and prestige beneÀts

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PIPELINE NEWS August 2010

Honk your horn for truck drivers’ Vermilion – The best way to digest a safety message is with a full stomach.

That was the thinking behind the Alberta Motor Transport Association’s driver appreciation

day at the busy Vermilion vehicle inspection station on Highway 16.

The promise of a free

Alberta Motor Transport Association safety coordinator Stan Vickers welcomed truckers to the driver appreciation event and distributed information safety packages.

barbecue with refreshments motivated 400 to 500 truckers to pull in to the station on June 23 and shake hands with AMTA safety coordinator Stan Vickers.

“I talk to the drivers and give them a package,” said Vickers. “If they have time to stop, they go around the back and feed themselves and have something to drink.

“One fellow from Ontario said he’s never come across this before. I said ‘you don’t live in Alberta then.’ You’ve got to

have an appreciation for the drivers.

“They are away from home a lot. They are up and down the highways bringing the goods to us that we need for everyday living. It’s important to recognize them. They are professionals in their field.”

The handout package included information about the AMTA that represents all sectors of the highway transportation industry with the focus on driver safety and training.

The AMTA offers members of the transport industry courses ranging from health and safety and long combination vehicle training to traffic collision investigation for safety professionals.

There is even a course on ergonomics and injury prevention.

With summer road traffic and construction picking up, Vickers wishes more drivers of passenger vehicles would take a crash course in safe driving with truck traffic.

“The biggest issue for all drivers is safety,” he said. “If we can get the public to understand what they should be doing when they are around these big trucks – the drivers can only watch a certain amount at a glance.

“We all need to think about safety and getting our speed down. That’s certainly an issue, not so much with trucks, but with passenger vehicles.”

The AMTA also works with the Alberta government to advocate road improvements including safety features such as pullouts and rest areas.

“We lobby the government all the time for road improvements of different areas,” said Vickers.

The AMTA also alerts its members to ongoing construction zones including reconstruction of Highway 16 at the west end of Lloydminster.

The AMTA is also supportive of future corridor improvements including the much talked about Lloydminster bypass and a safer intersection at highways 16 and 897 in Kitscoty.

“The less contact we have with the public the better off we all are,” said AMTA chair Dean Paisley, who works for Lethbridge Truck Terminals.

“We don’t buy anything or do anything in communities, so they don’t really need our large trucks in their communities. We would like to be going around the cities.” ɸ Page C23

PIPELINE NEWS August 2010

Vermilion holds appreciation day ɺ Page C22 Paisley is also pleased by the Saskatchewan government’s increased investment in highway improvements leading to safer road conditions.

“I think it’s depending on the budgets of each province,” he said about highway projects. “I know that Saskatchewan has a whole lot more willingness to spend money since this last administration came in.

“With Alberta, it’s never been an issue. They’ve got the cash. They’re spending it on the highways.”

Saskatchewan and Alberta have also harmonized weights for B-trains that cross back and forth over the border, thanks in part to lobbying by the AMTA. “That is the type of issue we deal with the government,” said Paisley.

As for the oilpatch, Paisley says a key concern on the transport side is hiring and training people.

“Attracting young men into the industry is one of the issues that we see,” he said.

The driver appreciation event included Gibson’s Driving Simulator, a computerized brake testing unit, and a new thermal imaging device from Alberta’s Transportation Safety Services Commercial Vehicle Enforcement Branch.

The AMTA is a founding member of the Canadian Trucking Alliance, a federation of provincial trucking associations representing approximately 4,500 carriers.

Those connections help to explain the bumper to bumper line-up at the vehicle inspection station.

“We did it here last year, and hopefully, it will continue,” said Vickers who noted a driver appreciation day was also scheduled that week in Leduc and in September at Balzac near Calgary.

“If we didn’t have trucks we wouldn’t have anything. Everything is delivered by a truck,” he said.

Ditto the endorsement for truckers from Paisley who added, “This economy in this country runs on the back of a rubber wheel. You guys have to drive our trucks – thank you for doing it.”

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PIPELINE NEWS August 2010

CN links Husky in Lloyd to world markets

The Lloydminster Husky Upgrader, the ethanol plant and the asphalt reÀnery are the three main ports of call for CN Rail.

Photo by Geoff Lee

Lloydminster – CN Rail is an important transportation player and a key customer for Husky Energy’s heavy oil operations in Lloydminster.

The upgrader, the asphalt refinery and the ethanol plant are regular CN destinations for the shipment and delivery of petroleum-based products produced and used by Husky in Lloydminster.

Husky uses CN to ship about 12 cars a day of petroleum coke from the upgrader, about three

cars a day of sulphur and about two of diesel, according to Husky spokesperson Adam Sparks in Calgary.

“The diesel of course is for CN’s use,” said Sparks.

Statistics Canada reports that CN consumed over one million litres of diesel fuel in 2008 from its total freight, passenger, and yard switching and work train operations in Canada.

“CN definitely uses diesel fuel,” said Mark Cvar from CN’s marketing office in Montreal.

“We are one of the biggest buyers in Canada. We buy from Husky and a number of other producers as well.”

The petroleum products CN ships to international markets include gasoline, ultra low sulphur diesel, natural gasoline, jet fuel, liquefied petroleum gases (LPG), alternative fuels, plastic pellets and feedstocks, petroleum and lube oil.

Included on the list is asphalt produced

by Husky’s refinery in Lloydminster.

In 2008, the asphalt refinery processed an average 26,000 barrels of crude oil per day and the marketing department sold more than 4.9 million barrels of asphalt to customers across North America.

“If we take a look at the asphalt refinery, we are currently shipping about 10 cars a week,”

said Sparks.

The asphalt refinery has a dedicated rail fleet of more than 350 cars and connections to trucking companies and rail transport by Canadian Pacific and CN trains.

CN ships asphalt to markets in Canada and the United States.

“Asphalt is going to mainly infrastructure projects, and those things change year by year depending on who has the capital to fund these projects,” said Cvar.

The asphalt refinery has links to Husky’s 2,087-kilometre crude oil pipeline system that relies on rail to deliver NGL or natural gas liquids shipments.

“For our pipeline operations, we also get NGL shipped for use as a diluent for our pipeline transportation for heavy oil” said Sparks.

Husky also uses CN to ship about one rail car a day of dried distillers grain with solubles or DDGS and some ethanol on occasion.

DDGS is a coproduct of the ethanol production process and a high nutrient feed valued by the livestock industry.

In a July 7 news story in Bloomberg News, CN’s CEO Claude Mongeau reported his company plans to improve fuel productivity three percent annually in the next few years as it buys new locomotives and runs longer trains.

He also noted CN’s rail business in Western Canada is gaining strength from record volumes of coal and potash driven by demand from China and other Asian countries.

To keep up with the growth CN reportedly plans to hire as many as 2,000 people annually over the next five years to replace retiring employees and reduce operating costs.

“Generally speaking it’s kind of consistent with our story across Canada that CN is a pretty good proxy for the economy, and we are seeing steady improvement all across the petroleum industries,” said Cvar.

PIPELINE NEWS August 2010

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Truckers follow the leader in a drive to ¿ght cancer Lloydminster – Cancer doesn’t care if you’re mad; it only worries when you fight back.

Those are the rallying words of oilfield trucker Tom Jack and his wife Janice King from Vegreville who organized a truck convoy from the Vermilion Vehicle Inspection Station to the Lloydminster Exhibition grounds July 24 to raise money for a cancer cure.

The event called “Convoy for a Cure, Pulling to Fight Cancer” earned the endorsement from the Alberta Cancer Foundation, and a hands-up from truck drivers and corporate sponsors to support the cause.

Look for the September issue of the Pipeline News for more photos and details about the convoy that was expected to attract more than 50 drivers for the Saturday morning rally with a planned 10 a.m. start.

The organizing brochure called for the convoy route to head west from the inspection station on Highway 16 and turn eastward via the Vermillion overpass on the 65 km route.

The schedule called for a fundraising BBQ to take place at Exhibition Grounds until 3 p.m.

Jack vowed to drive there too with his wife as the owner operators of Tom Jack Trucking in Vegreville.

Their company hauls oil and production fluids for W-K Trucking Inc. in Mundare, Alta. and hopes to put the brakes to cancer with like minded drivers.

“Our family, like so many others, has been savagely undermined,” wrote Jack on his event web site.

“Our first feeling was a feeling of helplessness, which grew to deep fiery anger. But being angry won’t solve the problem.

“We’ve decided to stand together and fight these insurmountable odds.

There must be a cure, and with your help, we can beat cancer one mile at a time,” he continued.

The idea of an event caught the imagination of The Goat radio station in Lloydminster that jumped on board as the main event sponsor and suggested the convoy.

The Goat decided to host a radio auction and an online auction on Facebook with the full list of prizes posted on online.

The auction closed at midnight on July 24, but the buzz about the event could linger for weeks as there is talk of an annual event.

Next year, the name will be changed as it’s currently “loaned” by the goodwill of event founder Rachèle Champage from Ontario.

She organized the first all female truck convoy in the world on October, 2008 from Cornwall to Cardinal ON (62 km) on Highway 401 with 29 female truck drivers at the wheel.

That first event and registered use of the name generated more than $10,000 in sponsorships and raised nearly $15,000 for the Canadian Breast Cancer Foundation.

All proceeds the Lloydminster Convoy for a Cure will support the Cross Cancer Institute in Edmonton.

Tom Jack and his wife Janice King organized a truck ‘Convoy for a Cure” for cancer July 24 from Vermillion, Alberta to Lloydminster. Looks for photos and results in the September issue of Pipeline News.

BUSINESS FOR SALE Auto Recycling & Mechanical Repair Shop ATV / SLED DECKS Adjustable width decks also available • Easy to load & unload • Reversible ramp for your snowmobile & quad • High quality brushed aluminum requires no maintenance • Rounded headache rack

100 MILE HOUSE B.C. $800,000+ Asking Price: in Annual Sales - 15 years in business - Turn key operation - 1.2 hectares all fenced - Late model inventory - 2800 sq ft shop - 3- hoists - Fork lifts - Shop tools and equipment

$

750,00000 All in or

$

350,00000

inventory and equipment, lease land and building back.

• 4 side LED lamps • Super Clamps Included • Strongest (and longest) ramp system on the market

Re-usable and High Resale Value

Lloydminster Paint & Supplies Ltd. Daryl (780) 875-4454 or (780) 871-4109 5628 - 44 Street, Lloydminster, AB

• Our customers testify that we have the best looking deck on the market - and it is built to last • If a customer decides to purchase a different pickup the deck can accommodate either Short & Long Box trucks

(250) 395-1141

C26

PIPELINE NEWS August 2010 Kim Leipert and a partner plan to build a new commercial subdivision on 25 acres of land on the west side of Upgrader Road with Highway 16 frontage.

Peddler sells consigned oil¿eld iron to a world market Lloydminster – With the economy on the uptick, Kim Leipert is in the driver’s seat at Peddler Consignment Sales Ltd., with his wife Wendy the bookkeeper at his side.

Leipert is selling lots of heavy oilfield equipment and some heavy trucks on consignment from his website and corner lot on Highway 16 and Upgrader Road just east of Lloydminster – but he fears another boom.

“In my business, you make it on the up and down,” said Leipert. “When the market is going down, you get a lot of equipment for sale, and when it’s going up, you get sales for equipment and you have to find it.

“When the market is really strong, it’s tough for me to make a living because customers will go and buy new or sell it on their own.

“The last few years it’s been good for me. There is a lot of equipment for sale.”

The Peddler has a lot inventory of about 35 to 40 trucks and oilfield and industrial equipment and just as many consignment sales of vehicles and equipment still on the job for their owners.

“We sell everything from one-tonne dualies and up,” said Leipert. “These are big trucks, heavy oilfield winch tractors, flushbys, pressure trucks, vac trucks and trailers.

“We also sell service rigs and drilling rigs and coil tubing drilling rigs. I do some construction equipment. I sell some Cats and backhoes and trackhoes.”

Last month, Leipert erected a huge highway banner on his perimeter lot fence of his web site that really drives local and international sales.

The web features a thumbnail photo of each consigned piece along with the stock number, make, model, VIN, model year and odometer reading.

Beside that is link to a full set of interior and exterior photos, technical specs, features, comments and the price.

Leipert promotes his website in all of his ads and gives marketing preference to a Houston Texas publication that reaches 51 countries.

“In today’s market that’s a big thing to get it out in the right places,” said Leipert, who says a lot consignments are from sellers who don’t have the time or money to advertise.

“Rather than hire somebody on staff to do it, they will bring it here. It will cost them whatever the commission is.”

Overseas sales of oilfield equipment have come from buyers in Oman, Egypt, Columbia and Australia and from the United States and Mexico who have browsed his web.

“A good portion of business starts with an e-mail inquiry,” said Leipert.

“They are looking and they see something they like, and if they are interested

enough, they will phone you.”

Asked why someone in the Middle East would want Canadian-made oilfield equipment, Leipert said, “They like our iron over there because it’s well built.

“All of our oilfield stuff is built to a pretty good standard. If you see what they are running over there you would shake your head. Some of it is pretty junky.

“The foreign buyers tend to be existing businesses that are branching into different areas. Some guys may have service rigs, and they are getting into coil tubing.”

He says it’s also easier for foreign buyers to import used equipment than new due to internal restrictions in their country.

In Western Canada, most of his oilfield equipment sales are from buyers in the Bakken play of southeastern Saskatchewan and from Manitoba.

“It’s mostly service stuff – vac trucks and pressure trucks,” said Leipert. “It’s pretty busy here too. I am surprised how much work is going on.”

“In Canada, there are a lot of startup guys. I get most of the startup truckers, trucking oil. A startup guy will buy a used pressure truck to get going. They will feel out the business and buy used rather than putting out the money to buy new.”

As for highway truck sales, Leipert bluntly says that market has been in the “toilet” for a while.

“In 2007 and ’08 when the market started falling, a lot of guys were bailing to get out of debt so they could weather the storm. It just hasn’t kicked back in,” he said.

Leipert has been in business since 2002 and moved from in-town to his current location about two years ago and he says it’s perfect.

“You can’t beat it. When people are going by they have time to think and they can see you,” he said.

The site was purchased as a 28-acre parcel with help from a majority investor, with three acres on one side of the Upgrader Road for the Peddler business.

“My goal was to end up with this and some day sell out,” said Leipert.

The remaining 25 acres of land with highway frontage will be subdivided into four, four-acre lots and one six-acre lot for sale in a new commercial subdivision.

“The lots will have power and gas, and we are not sure if the city is going to put water into them or not. The buyers will have to put their own sewer systems in,” said Leipert.

“We are hoping in the next month to start doing some earthwork on it. The timing is going to be pretty good. The market is on the upside.

“We have had a lot of interest from guys looking because there isn’t much commercial property in Saskatchewan in Lloydminster.”

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Liquid Cooled Diesel 9 to 670 Hp Industrial engine controls and accessories, CanPlus Messenger remote telemetry

PIPELINE NEWS August 2010

C27

Vermilion Lakeland campus braces for trades growth mined by Alberta Apprenticeship and Industry Training.

“The highest demand right now is our electrical area,” said Samuelson. “We started instrumentation three years ago, and we have a second year here now and it’s increasing.

“Carpentry is up, our electrical is up and our instrumentation and steamfitting and pipefitting are up. We just started steamfitting about three years ago, and now we have all three years, and they are full.

“Welding is down a little bit, but I expect it to come back up too.”

Samuelson reports the number of trade apprenticeships in Alberta has soared from 35,000 to more than 67,000 in under four years.

“Saskatchewan is around 9,000 right now, and they will probably be up to the 30,000 to 40,000 range soon,” added Samuelson.

“We have students from all over – from the Edson area, from Fort McMurray – 30 per cent of our students come from outside of our area.”

More enrolment is expected with the

pending purchase of the 1,447-acre Barrhill Farms Ltd. bordering the west side of campus.

The property includes oil leases, native grasslands and wetlands to be used as labs for environment science degree and diploma courses.

Students will be able to assess old lease sites, examine the productivity of reclaimed land, evaluate riparian areas, study wetland plants, soil test and much more – doing away with the expense of traveling to industry sites and public land to complete labs.

“There was a lot of time and money spent travelling to the sites,

and we were finding it more difficult to meet company regulatory requirements to go onto oil leases,” said Mel Mathison, dean of agriculture and environmental sciences, in a news release.

A house and a workshop on the farm will be turned into a centre for applied research and training in renewable energy. Wind solar, geothermal and heat storage systems will be incorporated into the buildings.

The project is sup-

forward.”

Meanwhile improvements are underway to upgrade trades facilities at the campus.

“Right now we are doing some renovations in our applied engineering area,” said Samuelson. “We are putting our steamfitting, pipefitting and welders together over there.

“We are putting nine more classrooms in the trades mezzanine area.

“What that will do is open some of the shop space downstairs to increase our carpentry labs and our auto diesel labs, and still have the classroom facilities up here (top floor).”

The campus also received over $100,000 of trades teaching equipment from by the Alberta government as surplus from the 2009 WorldSkills competition for trades held in Calgary last October.

Tarpon Energy also donated $77,500 worth of industrial instrumentation equipment in June.

Fax: (780) 872-5239

SE Sask. & SW Man. Jan Boyle

Cindy Beaulieu

Glenys Dorwart

Kristen O’Handley

Deanna Tarnes

Sales Manager

cbeaulieu@estevanmercury.ca

gdorwart@estevanmercury.ca

kohandley@estevanmercury.ca

dtarnes@estevanmercury.ca

SE Saskatchewan & SW Manitoba Ph: 306.634.2654 Fax: 306.634.3934

jboyle@estevanmercury.ca

SW Saskatchewan

NW Saskatchewan and NE Alberta

SW Saskatchewan Ph: 306.773.8260 Fax: 306.773.0504

Doug Evjen Sales Manager devjen@prairiepost.com

Stacey Powell spowell@prairiepost.com

www.pipelinenews.ca

NW Saskatchewan Ph: 780.875.6685 Fax: 780.875.6682 Email: daniela@pipelinenews.ca Daniela Tobler Sales Manager

Saskatchewan’s Petroleum Monthly Saskatchewan’s Petroleum Monthly

Saskatchewan’s Petroleum Monthly Saskatchewan’s Petroleum Monthly

Alice Wainwright-Stewart and Bert Samuelson have lots of reasons to be excited about the future of trades training at Lakeland College at the Vermilion and Lloydminster campuses. Enrolment is up for many fall courses in Vermilion and the college is seeking industry partners to help fund a new power engineering lab in Lloydminster.

port by a recent $2.3 million five year grant to the college from the Natural Sciences and Engineering Research Council of Canada’s College and Community Innovation program.

The grant will be used to expand applied research and innovation activities related to environmental sciences programs.

The land purchase, pending an Order in Council for the Alberta government, will also allow space for new training facilities for Emergency Services Technician courses currently in full swing over the summer.

“Our summer is a very busy time for our emergency training centre,” said Alice Wainwright Stewart vicepresident of academic, innovation and research.

“We also do a lot of industry training. We have a remote site that we are outgrowing. We need to look at part of the land purchase to help to move that site

PIPELINE NEWS

PIPELINE NEWS

Career Opportunities

Vermilion – Lakeland College in Vermilion continues to be the campus location of choice with strong enrolment numbers to date for fall oilfield, industrial, automotive and construction trades and pre-employment courses.

“We are ahead of schedule as far as numbers go,” said Bert Samuelson dean of trades and technololgy.

“The ones that are surprising me the most are our pre-employment apprenticeship classes.

We have six pre-employment classes and they are filling right up – instrumentation and electrical in particular.”

Pre-programs will be offered at the campus for carpenter, electrician, heavy equipment technician/automotive service technician, instrument technician and steamfitter-pipefitter and welder trades.

These programs include 12 weeks of inclass and lab instruction plus a four week job placement.

The increase in preemployment enrolment will offset a drop in the number of apprenticeship training seats from 1140 to 960 as deter-

C28

PIPELINE NEWS August 2010

Career Opportunities Employment Opportunity

is an industry leader in Safety Services and is currently seeking

Safety Personnel to keep up with increasing customer demands.

If you are interested in becoming part of the Target Team and enjoying our growth with us, let us know!

Please forward resume with copies of tickets to: resumes@targetsafety.ca or fax to 780-870-5359

Mechanic Wanted

Brady Oilfield Services LP. Must have valid SGI Inspection CertiÀcate

Mail or Fax Resume

Attn: John Henry P.O. Box 271 Midale, Sask. S0C 1S0 Fax: (306) 458-2777

Part Time Driver Wanted for light oilÀeld hauling.

Clean drivers abstract required and tickets are an asset.

We require G endorsement or 1A licence.

Interested individuals can mail resume to: Box 208 Estevan, SK S4A 2A3

SRI HOMES’ Estevan Facility, SHELTER HOME SYSTEMS has immediate openings for

General Maintenance/ Serviceman

Duties to include but not limited to general maintenance, service and delivery of generators. Must have some experience but willing to train. Looking for a reliable, independent individual.

Please forward resume to :

AC Power 102 Perkins Street or Fax: 634-5545 Attention: Larry

Truck Drivers Wanted Brady Oilfield Services LP. Weyburn, Halbrite and surrounding area.

OilÀeld Safety CertiÀcates an asset but not necessary. BeneÀts package available.

Mail or Fax Resume and Drivers Abstract P.O. Box 271 Midale, Sask. S0C 1S0 Fax: (306) 458-2768

PRODUCTION PERSONNEL This is a union shop with an excellent benefit package. If you have an excellent work history and are willing and capable of working at a variety of jobs in a fast paced construction environment, email your resume to:

jobs.shelter@gmail.com or bring it to the factory at # 200 Hwy. 18 West.

BOOKKEEPER TERRITORY SALES PROFESSIONAL Titan Logix Corp. is a leading manufacturer, supplier and service provider of advanced electronic instrumentation, controls and automation solutions to the oil & gas, tanker truck, and aviation industries Due to continuing demand for our products and services, we require a professional sales representative, based in South Eastern Saskatchewan, to grow our business in Saskatchewan and Manitoba markets.

You will prospect for new accounts, increase opportunities with existing customers, while achieving proÀtable sales goals. This is an excellent opportunity for a sales professional to join an industry leader. Previous sales experience in a related industry sector is desirable.

Please apply in conÀdence by email to: hr@titanlogix.com.

Check our website: www.titanlogix.com.

Responsibilities Include: • Working knowledge and operation of Simply Accounting computer program • Accounts Receivable/Payable • Generate the required accounting reports • Timely remittances to government agencies • Maintain filing system as required • Other general office duties as required Position is permanent full time and benefits are provided.

Wages negotiable.

Interested individuals can fax, email or drop off resume to:

314 - 6th Street, Estevan Fax: (306) 634-4643 • Email: construction@peterson.ca

Brian Nicholson 577-8679

EMPLOYMENT OPPORTUNITY Class 1 Driver For Tank Truck in Oil Field

PIPELINE NEWS August 2010

L & C Trucking

C29

Career Opportunities

“Serving the Oil Patch for 54 Years”

SAVANNA WELL SERVICING www.savannaenergy.com

TRUCK DRIVERS • SWAMPERS PICKER OPERATORS

Join our team at Savanna today!

Savanna Energy Services Corp. is a premier well servicing company operating in the oil and gas sector throughout Western Canada and the United States. Our goal is to demonstrate dedication, pride, and professionalism in all we do.

Competitive wages, health plan, safety tickets an asset, but will train.

Apply in person with resume or fax or email to:

We are looking for great people in the CARLYLE, SK area

24 Hwy 39 E Estevan Attention: Blair Hunter Fax: 634-8699 Email: LCTrucking@sasktel.net

Opportunities are available for all Well Servicing Positions: RIG MANAGERS, DRILLERS, DERRICKHANDS & FLOORHANDS Class 1 or 3 driver’s licence an asset

Please fax or e-mail resumes to: 403 398 0189 or savannacareers@savannaenergy.com or apply online at www.savannaenergy.com

Prairie Mud Service “Serving Western Canada With 24 Hour Drilling Mud Service”

Environmental Technologist/Technician Estevan, SK The Candidate The successful candidate will hold a diploma in Environmental Technology/Sciences and/or have experience in the Àeld of drilling waste management. The candidate must be familiar with all aspects of the current Saskatchewan GL 99-01 Guidelines.

You are an accountable individual who enjoys multi-tasking and working on his/her own as this position requires good time management skills and self discipline. Your role will mainly be responsible for the Drilling Waste aspect of Prairie Mud’s clients in the immediate and surrounding Estevan area. You are a forward outside the box thinker with the ability to keep current clients happy and develop new opportunities.

Exposure to oilÀeld work ie: (Drilling Rigs) is a deÀnite asset. The candidate will be required to travel.

Responsibilities will include but not limited to: • Soil and water sampling/analysis; • Land use and water source negotiation; • Drilling waste sampling, analysis and treatment; • Report preparation; • Earthen Sump Sampling; • Mentoring current and future employees; • Maintaining contact with the Environmental Manager; • GPS Mapping of drilling waste areas; • Business Development; and • Documentation of all activities and regulatory Àlings To apply for this position please send your resume to Prairie Mud Service via email or fax: Bus: 306-634-3411 Fax: 306-634-1951 Cell: 306-421-7858 Email: loran.thue@prairiemud.ca

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

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

Phone: (780) 875-6880

5315 - 37th Street Provost, AB T0B 3S0

Phone: (780) 753-6449

Fax: (780) 875-7076

24 Hour Service Specializing in Industrial & Oilfield Motors

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

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PIPELINE NEWS August 2010

Resources Guide

* Cement * Fracturing * N2 * Polybore

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

Midfield Supply ULC

Well Service

P.O. Box 1468 402, #9 Service Road South Carlyle, Saskatchewan S0C 0R0 6:7c

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

Calgary 403-264-8206

www.millenniumdirectional.com Horizontal â&#x20AC;˘ Directional â&#x20AC;˘ Well Monitoring

3D

Box 609 Carlyle, SK S0C 0R0

Maintenance

Box 12 Frobisher, SK. S0C 0Y0 merv_and_deb@xplornet.ca

Aspen Custom Trailers 6017-84th Street S.E. Calgary, AB T2C 4S1

Lance Wotherspoon Regional Sales Manager

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

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

Carlyle 306-453-2533

Cell numbers: 483-8024, 483-7024, 483-8148 Home: 486-2143 â&#x20AC;˘ Fax: 486-4855

lancew@aspentrailer.com www.aspentrailer.com

* Acid * Coil Tubing *CO2 * Industrial

Bully Blast & Paint Services Ltd.

Bus: (306) 634-8084 Cell: (306) 577-8833 Fax: (306) 453-6478

&DQDGD V OHDGLQJ GLVWULEXWRU RI LQGXVWULDO Ă HHW DQG VDIHW\ SURGXFWV

3URXG WR SURYLGH VHOHFWLRQ TXDOLW\ DQG H[FHOOHQFH WR RXU FXVWRPHUV

WK 6WUHHW (VWHYDQ Â&#x2021;

â&#x20AC;˘ Shop & Field Service â&#x20AC;˘ Structural Steel â&#x20AC;˘ Tank Linings â&#x20AC;˘ Spool Coating Your Sandblasting, Painting & Coating Specialists with over 20 yrs. experience in the industry

ISNET, Comply Works and Secor Compliant Cell: (306) 461-9676 â&#x20AC;˘ Bus.: (306) 457-2264 P.O. Box 54 â&#x20AC;˘ Benson, SK â&#x20AC;˘ SOC 0L0 bullyblasting@sasktel.net

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.

â&#x20AC;˘ Pressure Vessels â&#x20AC;˘ Well Testers â&#x20AC;˘ Frac Recovery â&#x20AC;˘ Wellbore Bleedoff â&#x20AC;˘ Ball Catchers â&#x20AC;˘ 400 bbl Tanks â&#x20AC;˘ Rig Matting â&#x20AC;˘ Complete Trucking Services

Dale (306) 861-3635 â&#x20AC;˘ Lee (306) 577-7042 Lampman, Sask.

Bulk Agency 912 6th Street, Estevan

634-7275 Toll Free: 1-866-457-3776

website. www.continentalengine.ca FAX 525-8222

continentaleng@sasktel.net

Cordell Janssen District Manager Downhole Box 208

Estevan, SK

S4A 2A3

461-8471 â&#x20AC;˘ 461-8472 â&#x20AC;˘ 461-8473 Call: Clinton Gibbons

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

T&C OILFIELD Maintenance Ltd. Box 566 â&#x20AC;˘ Oxbow, Sask. â&#x20AC;˘ S0C 2B0

Office: 483-2883 Tony: 483-7605 Serving SE Sask for 27 years!

PIPELINE NEWS August 2010

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PIPELINE NEWS August 2010