Pipeline News October 2012

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PIPELINE NEWS Saskatchewan’s Petroleum Monthly

October 2012

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Canada Post Publication No. 40069240

Volume 5 Issue 5

LHOS Coverage

Enbridge's Bakken Expansion A10 WCSS Runs Spill Excerise B25 Heavy Oil Show Banquet C1 This Oil Boss pumpjack by PlaƟnum Pumpjack Services Corp., based in Calgary, provided the iconic image for the 2012 Lloydminster Heavy Oil Show Sept. 12-13. Photo by Geoī Lee

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PIPELINE NEWS October 2012

INSIDE SECTION A 4

Breathing room for coal-Įred plants

8

5

Feds willing to listen

12 Vantage Pipeline kicks oī

6

Editorial: pipeline capacity key for new markets

16 Stampede Drilling building Įrst rigs

Long Creek Railroad loads Įrst car

SECTION B 1

Entrepreneurship in the Swayze blood

11 Pipelining since 1953

4

New motel made of modular units

25 WCSS runs spill excerise

7

Anatomy of a Hwy 63 roll over

28 Dean of trades

SECTION C 1

Lloydminster Heavy Oil Show banquet

8

3

Kindersley seeks relief from growth pains

20 Oil show photo spread

7

Oil spill threat drives WCSS Training

24 Jet pump ideal for high sand CHOPS wells

OilŇow SoluƟons

PIPELINE NEWS Saskatchewan’s Petroleum Monthly

Nov. 2012 Focus

SERVICE RIGS

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SW Sask - for all of your advertising needs contact: Ph: 306.773.8260 Fax: 306.773.0504

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PIPELINE NEWS October 2012

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TOP NEWS

Approximately 6,000 visitors aƩended the 2012 Lloydminster Heavy Oil Show held at the Lloydminster ExhibiƟon Grounds Sept. 12-13 under warm and sunny skies. The event aƩracted 214 exhibitors and 368 indoor and outdoor booths.

Oil show a success with 6,000 attending Story and photos by Geoff Lee Pipeline News Lloydminster – Larry Doke, MLA for Cut Knife-Turtleford, set himself up as a soothsayer with his prediction of a strong turnout at the opening night banquet of the 2012 Lloydminster Heavy Oil Show. Approximately 6,000 visitors attended this year show according to event chair Mike McIntosh who said that was in line with what the committee was expecting. “It was good. I haven’t read the surveys yet,” he said on Sept. 19. McIntosh noted that were 214 exhibitors and 368 booths at the Lloydminster Exhibition Grounds Sept. 12-13 to make Doke’s foretelling words come true. “I commend the organizers in their efforts to make this show bigger and better every year,” Doke said before a sold-out banquet audience at the Prairie Room on Sept. 11. “Lloydminster is a perfect venue to host this oil show aptly titled, World Supply and Demand, Heavy Oil’s Future. “This event is real plus for the community of Lloydminster with thousands of visitors of coming through the doors, delegates from dozens of countries, and more than 200 exhibits. “The Lloydminster Heavy Oil Show is good for this city and is a great way to grow our oil and gas industry in Saskatchewan.” The oil show is held every second year and is organized by Lloydminster Oilfield Technical Society volunteers. For the first time in its history, the annual Lloydminster Heavy Oil Technical Symposium was held in conjunction with the heavy oil show. That trend is expected to continue in 2014 when the next heavy oil show

comes around. “It went very well. It’s the first time we’ve been able to partner the Lloydminster Heavy Oil Technical Symposium with the Lloydminster Heavy Oil Show,” said Mark Bacon, new chair of the Lloydminster chapter of the Society of Petroleum Engineers (SPE) that organizes the symposium. “We believe we will keep doing that in the future. It worked out very well. We were quite happy with the outcome. The symposium featured two presentations per day in the Prairie Room and attracted a lot of oil show visitors in addition to petroleum engineers. “The first day we averaged around 80 people for the two speakers, which is very good. The second day was more in the area of just under 50,” said Bacon. “The reason why we only had four speakers is because the Lloydminster Heavy Oil show had already arranged luncheon speakers, so we didn’t want to overburden people.” Luncheon presentations were made by Husky Energy’s Paul Zorgdrager, vice-president Lloydminster production operations for heavy oil and by Tim McMillan, Saskatchewan minister responsible for Energy and Resources. The symposium was the first event Bacon got to chair following a succession ceremony at the banquet to honour the contributions of outgoing SPE chair Mike McInstoh. “It was very good. It was a good ceremony turning things over,” said Bacon. “I think Mike was surprised when he got his award. We are going to keep him on as past chair. He’s the man with all the experience, so he’s going to help steer it.” Bacon also succeeded in his appeal for new members to join the SPE by signing up two professions during the symposium. The Lloydminster SPE will resume is fall luncheon presentations at the Best Western Inn on Oct. 18.

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PIPELINE NEWS October 2012

BRIEFS

New regulaĆ&#x;ons mean draglines like this one will be working for quite a while yet.

Quattro increases

Briefs courtesy Nickle’s Daily Oil Bulletin

There’s some breathing room for coal-Àred plants „ By Brian Zinchuk Pipeline News

Besides the BD3 project, SaskPower is also working on a carbon capture test facilty at Shand Power Station. There are also similar projects in the industry, he noted. “Over time, we think the cost will come down,â€? Bruce said. Saskatoon, Regina – An announcement on Sept. 5 by federal While the federal government bent from its original plan Environment Minister Peter Kent in Saskatoon has provided some breathing room for SaskPower and its eet of three coal- on emissions requirements, Bruce noted, “We didn’t get the full eet exibility we were asking for.â€? ďŹ red generating stations. That would have allowed averaging emissions between all Guy Bruce, vice-president of planning, environmental and regulatory aairs with SaskPower, told Pipeline News it goes their power plant units. Boundary Dam, Poplar River and Shand Power Stations back to an announcement of new regulations a year ago which are the largest point sources of CO2 emissions in the province. called for all coal-ďŹ red generating units to be brought up to “It is important to mention they are relatively large sources of certain emissions standards or shut down by the end of 45 years in operation. That end-of-life requirement has since been modi- emission in the Saskatchewan context, but they are small in the worldwide context,â€? he said. ďŹ ed to 50 years. SaskPower is the leader in utility-scale carbon capture with The new allowable emissions level will be 420 tonnes of CO2 per gigawatt-hour, as opposed to the previously announced 375 its BD3 project. The company hopes it will be able to monetize t/GWh. That standard is the level of emissions intensity from a the knowledge it gains from the project. “We’ve been working together with other companies using natural gas combined cycle generating plant. To reach that level from coal plants, carbon capture technology, like that which is coal,â€? Bruce said. Coal is key in Alberta and Nova Scotia, but being implemented at Boundary Dam Power Station’s Unit 3 Ontario is in the process of phasing out coal altogether. “For Saskatchewan, there’s recognition within SaskPower (BD3), is necessary. and our government we have a valuable resource here and we “The regulations give us more time to make revisions,â€? Bruce sadi. “The kind of changes we have to make will be in the need to use it,â€? Bruce said in reference to the coal utilized in power generation. same realm as Boundary Dam’s carbon capture project. In the meantime, Unit 4 will have some minor work done “Our intention is to evaluate the performance of that projin 2014 to extend its life another seven years. Monitoring of ect and ensure it proves out.â€? They will look at deploying similar technology to the other Unit 3’s capture project will take place for several years, with a ďŹ nal decision on what to do with Unit 4 ďŹ ve or six years down units. The deadline was looming. Unit 4 will be 45-years-old in the road. Bruce noted that Units 4 and 5, which are similar sized, 2014, Unit 5 will be that age in 2018, and Unit 6 in 2022. The will likely be dealt with at the same time. “We might look at a carbon capture project is expected to begin operation in early combined thing,â€? he said, noting the importance of economies 2014. of scale. “More time helps,â€? Bruce said.

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Quattro Exploration and Production Ltd. has been awarded a special exploration permit in south-central Saskatchewan totalling 44,732 hectares (110,760 acres). The award of these lands provides the company a longterm position in the northwest region of the Williston Basin, where Quattro’s previous exploration eorts have provided strong indications of a number of prospective geological horizons, namely oil within the Bakken and Birdbear and gas within the Milk River and Duperow. The company is pleased with the issuance of the exploration permit that has been awarded to the company by the Saskatchewan government whereby the company’s continued investment in the region will allow it to advance what it believes to be potentially more than two material regional additions to the current oil and gas exploration and resource plays under development within Saskatchewan. “The award of this exploration permit brings Quattro’s exploration lands to over 120,000 acres in Saskatchewan and provides the company a number of long-term opportunities,â€? Leonard Van Betuw, president of the company, said in a news release. “The lands are very complementary to our current 100 per cent owned oil and gas production and facilities at Rangeview, Saskatchewan, which is 200 kilometres to the west of this exciting exploration permit.â€?

PIPELINE NEWS October 2012

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Willingness to listen on the BRIEFS Rig count part of the feds: PTRC By Brian Zinchuk

5. You need that time to evaluate what’s happening at the commercial level.” The PTRC is a key component of that project. It is curRegina – Dr. Malcolm Wilson, CEO of the Petroleum Technology Research Centre and one of the world’s leading rently working on its Aquistore project a few kilometres west of the Boundary Dam Power authorities on carbon capStation. Its purpose is to reture and storage, said the ceive a large portion of the federal government’s Sept. 5 CO2 captured from BD3 announcement of coal-fired and inject it into deep sapower plant regulations was a line acquifers. The ultimate “good omen.” intention is for SaskPower On that date, federal to sell its captured CO2 for Environment Minister Peter enhanced oil recovery, but Kent gave older coal-fired Aquistore provides another power plants a five year reoption as well as cuttingprieve, letting them work for edge research. 50 instead of 45 years before There’s no direct imeither being shut down or pact on the PTRC from required to meet stringent the environment minister’s emissions regulations that announcement. Wilson would necessitate carbon said, “At this point, we’re capture facilities. not involved in capture, Those emissions requirebut in storage. ments were also slightly re“As the federal governlaxed, from the previously ment moves forward, lookannounced 375 tonnes of ing at refineries, upgraders, CO2 per gigawatt-hour to oilsands and heavy oil, then 420 t/GWh. you’ll see climate change “I think the federal govregulation impacting the ernment’s willingness to lisoil and gas sector.” ten to what the utilities are Part of PTRC’s mansaying is a good omen as the date is to assist the industry. government looks to other It has long been involved sectors of the energy econoas the research arm in the my,” Wilson said. Weyburn-Midale carbon Time is the critical dioxide storage project. thing. “I think our research“SaskPower has the time to evaluate what happens at The Aquistore carbon dioxide injecƟon well was drilled over the sum- ers are top-notch,” he said. Boundary Dam Unit 3 before mer. Nabors Rig 60, seen here, has now been moved to the second well deciding to build Units 4 and to begin work on the observaƟon well. Photo by Brian Zinchuk

Aquistore now deepest well in Saskatchewan The carbon dioxide injection well being used for the Aquistore project just east of the Boundary Dam Power Station has a new distinction – the deepest well in the province. Its geography and geology were key in that regard. The Williston Basin gets deeper the closer you get to the U.S. border, and Aquistore is roughly six miles north of the 49th parallel.

Dr. Malcolm Wilson, CEO of the Petroleum Technology Research Centre, the organization behind Aquistore, reported the well’s driller’s depth is 3,396 metres. That doesn’t take into account stretch of the pipe, which may account for another seven metres. The purpose of drilling such a deep well is to inject CO2 into the formations directly above the “base-

ment,” the Precambrian rock below at the bottom of the sedimentary column. The well has been cased, cemented and perforated now. Work is expected to continue on the adjacent observation well throughout the fall. Nabors Drilling Rig 60 drilled the initial well, and will be doing the second as well.

After a summer that was substantially slower than 2011, the Saskatchewan drilling rig fleet picked up steam in September, cracking the 90 active rig number at the mid-point of the month, according to RigLocator.ca. That’s the highest the active rig count has been since spring breakup. The province hit an record of 122 active drilling rigs working in August 2011. It consistently saw roughly twenty more active rigs throughout the fall of 2011 and winter of 2012 compared to the year previous. But after breakup, numbers were substantially lower than the previous year, with approximately 30 fewer active rigs throughout the summer months. That put the pace of drilling more on par with 2010. The 90 active rigs accounted for 68 per cent of the drilling fleet. A further 42 rigs were still not at work as of Sept. 14. Saskatchewan’s rising rig count put it nearly on par with British Columbia, which had 69 per cent of its rigs working (38 out of 55). Manitoba’s activity level fell substantially since early August, with only 11 of its 22 rigs working, giving it a 50 per cent activity level. Alberta’s pace has been consistent with its 2010 levels, but far below its 2011 pace. Over the course of the summer, approximately 100 fewer rigs were working in the province compared to the previous year. That made for an activity level of just 45 per cent, with 258 of 576 rigs working.

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PIPELINE NEWS October 2012

PIPELINE NEWS

EDITORIAL

Mission Statement: Pipeline News’ mission is to illuminate importance of Saskatchewan oil as an integral part of the province’s sense of community and to show the general public the strength and character of the industry’s people. Publisher: Brant Kersey - Estevan Ph: 1.306.634.2654 Fax: 1.306.634.3934 Editorial Contributions: SOUTHEAST Brian Zinchuk - Estevan 1.306.461.5599 SOUTHWEST Swift Current 1.306.461.5599 NORTHWEST Geoff Lee - Lloydminster 1.780.875.5865 Associate Advertising Consultants: SOUTHEAST • Estevan 1.306.634.2654 Cindy Beaulieu Candace Wheeler Kristen O’Handley Deanna Tarnes Teresa Hrywkiw CENTRAL Al Guthro 1.306.715.5078 al@prairieng.com SOUTHWEST • Swift Current 1.306.773.8260 Stacey Powell NORTHWEST • Lloydminster Randi Mast 1.780.808.3007 MANITOBA • Virden - Dianne Hanson 1.204.748.3931 • Estevan - Cindy Beaulieu 1.306.634.2654 CONTRIBUTORS • Estevan - Nadine Elson To submit a stories or ideas: Pipelines News is always looking for stories or ideas for stories from our readers. To contribute please contact your local contributing reporter. Subscribing to Pipeline News: Pipeline News is a free distribution newspaper, but is now available online at www.pipelinenews.ca Advertising in Pipeline News: Advertising in Pipeline News is a newer model created to make it as easy as possible for any business or individual. Pipeline News has a group of experienced staff working throughout Saskatchewan and parts of Manitoba, so please contact the sales representative for your area to assist you with your advertising needs. Special thanks to JuneWarren-Nickle’s Energy Group for their contributions and assistance with Pipeline News.

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

Pipeline capacity key for new markets Gaining access to new international markets for Western Canadian oil by utilizing rail or pipeline is the key to our competitive survival with domestic production expected to grow by 200,000 barrels a day over the next several years. That was the main point of a keynote speech delivered at the opening night banquet of the Lloydminster Heavy Oil Show by Kevin Casper, vice president production for Devon Canada Corporation. Casper said the need for transportation links to customers other than the United States is critical since the U.S. is also expected to increase its own domestic oil supplies by five million barrels a day over the next 10 years. The Americans, he said, have demonstrated through horizontal drilling technology and multistage fracking in shale plays, their ability to respond to changes in the market. Their five million barrel per day increase will create an oversupply of Canadian oil without access to the seven million barrels per day of refining capacity on the U.S. Gulf Coast and global markets. Planned or ongoing refinery upgrades in other locations in North America will only add 550,000 barrels per day of refinery capacity, which would eat up new Canadian oil production in about two years. Canada currently exports 2.2 million barrels of oil to the U.S. of which 1.6 million is heavy oil. An additional 2.8 million barrels of oil a year is expected to be produced for export in the next 12 years. A saving grace for Canadian production gains is the fact global consumption of oil that currently stands at 89 million barrels a day is expected to grow by one million barrels a day over the next several years to support a West Texas Intermediate price of $90 to $100 per barrel of oil. Without improved transportation to the U.S. Gulf Coast refineries and Asian markets, however, oil from Western Canada will be stranded and subjected to discounted prices.

More than 100,000 barrels of heavy oil per day produced from the Lloydminster area is shipped by rail and 10 per cent of Saskatchewan’s oil production is transported by rail, but pipelines are the key to long term growth and sustainability. Casper sees some light at the end of the tunnel with a series of planned pipelines on the go including the 800,000 barrel per day Enbridge Flanagan South pipeline and the 800,000 Keystone XL by TransCanada Corporation to the U.S. Gulf Coast. There is also the 500,000 barrel per day Trans Mountain pipeline by Kinder Morgan to Vancouver in British Columbia and the 500,000 barrel capacity Northern Gateway pipeline to Kitimat B.C. proposed by Enbridge in the planning stages. Having just one main customer – the U.S. – is bad business, but these new pipelines will give Western Canadian producers a chance to get their raw or refined oil products to the coast whether it’s the East Coast, Gulf Coast or West Coast and into the world market. China is the second largest oil consumer in the world where 1.2 million new cars were added to the roads each month in 2011 to drive up energy demands in that country. Demand for oil and gas is also rising from Brazil, Africa and India, making Canada a significant supplier – if we have quick access to those markets. Locally, Casper said if oil and gas companies in the Lloydminster area can improve the heavy oil recovery rate which is currently about eight per cent, with conventional production techniques, it could lead to huge opportunities in the regional economy. Casper ended his talk by urging producers, the service and supply sector, the transportation sector and all levels of government to work co-operatively on these important marketing and transportation issues in order to adapt to a highly competitive and quick changing industry. It’s a message we will be hearing more about soon when the fate of the Keystone XL is determined in the first quarter of 2013.

PIPELINE NEWS October 2012

From the Top of The Pile

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OPINION

By Brian Zinchuk

Is CHOPS about to be chopped? You may have missed it, but an article about Husky Energy in our September 2012 edition may have been one of the first indicators in a sea change that could sweep the heavy oil industry centred on Lloydminster. That article noted, “Only three CHOPS wells were drilled in the second quarter of 2012 compared to 60 such wells in the second quarter of 2011, as thermal proves to be a cost-efficient alternative. “‘We’ve been making good progress in transitioning our heavy oil portfolio towards more thermal production and horizontal drilling.’ said Husky CEO Asim Ghosh during a second quarter conference call on July 25, 2012.” CHOPS stands for cold heavy oil production with sand. It has been the standard form of heavy oil production in the Lloydminster area for a couple decades now. CHOPS came about with the advent of the progressing cavity pump. It could deal with the copious amounts of sand produced with heavy oil that would bring pumpjack-style insert rod pumps to their knees. Without CHOPS, Lloydminster’s oilpatch would have whithered years ago. Continual, small advances it its technology has allowed the process to keep production up. However, there are limits to what it can do. It’s only capable of recovering a small percentage, about five per cent, of initial oil in place. That’s just a tiny fraction of the 20.4 billion barrels of heavy oil believed to be under Saskatchewan’s prairies. Thermal is much more expensive, both in initial capital, and in ongoing costs. In an era that has seen oil prices rise considerably compared to a decade ago, these technologies – steam assisted gravity drainage (SAGD), cyclic steam stimulation (CSS) and toe-heal air injection (THAI) become much more economical. Let’s face it, as Husky goes, so goes the industry around Lloydminster. If Husky has all but abandoned

new CHOPS development, that’s a huge harbinger of things to come. Massive technology changes are not new to the oilpatch. CHOPS itself was a huge development. Horizontal drilling has arguably been the biggest advance in drilling since, well, drilling began. Oil producing formations are by and large flat and wide, and a horizontal well can expose you to much larger areas of paydirt than you could ever dream with vertical wells. If Husky continues down this path, and other producers in the Lloydminster region follow, it will have huge impacts on the entire oilpatch in the area. It will impact what drilling rigs are appropriate. Will you need different service rigs? How much work do flushbys do in thermal projects? What about the entire industry that has grown up around dealing with produced sand, everything from sand retention pits to semi-vac trucks to disposal caverns? Will thermal processes need their services anywhere to the extent we see now? Will the pumps used in CHOPS hold up to thermal production temperatures? If you are a pump manufacturer, have you developed one that can? A small junior producer can drill a few CHOPS wells relatively cheaply compared to a SAGD setup. Has the barrier to entry for small and new producers just jumped? Can only the guys with deep pockets afford to play in a thermal heavy oil world? Erik Nickel, senior project manager with the Petroleum Technology Research Centre whose job is overseeing advanced research into enhanced oil recovery, particularly in heavy oil, doesn’t count CHOPS out just yet. He said, “Thermal is interesting, but thermal won’t be completely taking over for CHOPS any time soon. CHOPS is a primary production that still probably has to take place before thermal techniques are attempted. The wormholes created by CHOPS can be used like a

random horizontal well network to distribute the steam over the reservoir. Even if they go with thermal as primary production, there will probably still be sand production with the oil. The oil is less viscous when its warm, however there is a higher rate of production and that kind of pressure differential will still cause sand to come up the wells. “As far as the thermal techniques themselves, they have traditionally been fraught with problems. THAI successes have been few and far between. SAGD works well, however it is not applicable across all the heavy oil reservoirs. Thin impermeable beds can absolutely kill the process. Also, in thin reservoirs, with cyclic steam, the non-reservoir rock above and below act like big icecubes cooling the whole thing down before it has full effect. The start up costs on anything thermal cannot be understated either, it is absolutely huge.” Imagine you were a typewriter manufacturer in the early 80s, and the first Apple Macintosh computer landed on your desk. Your world was about to change. Did you recognize it? Were you adept enough to recognize that and change with it? Our Lloydminster reporter started his career working with an IBM typewriter. IBM doesn’t make a lot of typewriters these days. But there is a lesson to be learned from IBM, too. Big Blue has made it clear there’s one thing they know how to do, and that’s adapt with the times. IBM went from typewriters to personal computers to software. It’s still going strong. Companies in the CHOPS business may not be proverbial buggy-whip manufacturers just yet. CHOPS will still be around for a long time. But change is in the air, and apparently, underground, too. Brian Zinchuk is editor of Pipeline News. He can be reached at brian.zinchuk@sasktel.net

Lee Side of Lloyd By Geoff Lee

A China-owned Nexen raises red Áags The Harper government should turn down the proposed takeover of Calgary-based Nexen Inc. by the China National Offshore Oil Corporation. They should do so on the basis that CNOOC Ltd. is a state-owned company and the fact its top executives are members of the ruling Communist Party. That means CNOOC will mainly be motivated by non-market conditions and will not be driven by shareholders to maximize profits. They may have an interest in driving down prices to provide cheaper oil and gas to their own population in China, thereby threatening our energy security and influencing our national policies. If they are not going to function as a company that is motivated to maximize their rate of return in a free market system, then what is the point of allowing them to change or destroy the backbone of the Canadian energy and resources economy? The proposed takeover must be approved by Nexen shareholders and the Canada Investment Act, which will consider whether a takeover is of “net benefit” to Canada. There is no net benefit to Canada with CNOOC

ownership under the control of the Chinese government on our own soil. Previous cases of Canadian state ownership of oil and gas companies such as Petro-Canada, SaskOil and Nova Gas Transmission Limited ended up in privatization. They became private when it became clear the net benefits to the economy would be greater if these Crown corporations were owned and operated by private investors. According to a recent survey conducted for the Asia Pacific Foundation of Canada, only 16 per cent of Canadians said they would support a Chinese state-controlled entity taking over a Canadian company. How can the Canadian government justify a takeover of this type when they rejected the proposed U.S. $38.6-billion takeover of Potash Corp. of Saskatchewan in late 2010 by Australian-based BHP Billiton for having no net benefit to Canada? The Canadian government should continue to develop economic ties with China so we can sell our resources at market value into the Chinese economy, but communist ownership of any Canadian company should never meet the net benefit test for Canada. If CNOOC wants to invest in our oilsands and gas resources, they should be able to purchase a stake

through share offerings in free market stock exchanges and financial investments in Canadian companies, but not state ownership. If it didn’t work for our own Crown corporations such as SaskOil that was privatized in 1986, ironically as the root of Nexen, why would it work for Chinaowned CNOOC? After the Harper government turned down the takeover bid of BHP Billiton, it said it would define the rules under the Investment Canada Act for foreign takeovers of large Canadian firms. Industry Minister Christian Paradis has yet to take any action to clarify the vague nature of the act that China study released Aug. 15 just, shortly after CNOOC offered $15.1-billion for Nexen. “Canadian and Chinese stakeholders have highlighted the need for increased regulatory clarity, efficiency and predictability in the context of direct investments in each other’s countries,” said the report. The proposed CNOOC bid for Nexen could be the right moment for Canada to clarify to the Chinese government that we are open to foreign investment and greater two-way trade, but not at the cost to Canada of a foreign state owning of our resources. There is no net benefit to this type of precedent in the Canadian economy that operates in a free market system. O Canada, we stand on guard for thee.

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 October 2012

Long Creek Railroad loads it Àrst car And it’s not wheat going in Long Creek Railroad general manager Bob Holden oversees transloading eīorts.

Story and photos by Brian Zinchuk Bromhead – The fine dust of harvest was in the air on Aug. 30 as massive combines all around gobbled up one of the earliest harvests in a long time. A few farmers gathered beside a railroad car and engine, waiting for trucks to arrive. But this rail car wasn’t a hopper car, and there was no auger to load it. Instead, several tanker trucks full of crude turned up, to be hooked up in turn to a transloader which would meter oil as it was pumped into the rail car.

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For the farmers, this was a little different than what they expected when they first got involved in resurrecting a rail line. They figured the first rail car would be filled with grain. That’s still coming. But for now, it’s oil. Janice Ashworth brought out her new camera to get some pictures of the affair. She farms 9,800 acres and has 250 purebred Simmentals with her husband Kelly and sons Owen, 16 and Kyle, 19. They are one of the farm families who invested in the rail line as a way to reduce their shipping costs. All came out to see the show. “We farm at Oungre and have land at Bromhead,” she said. “The initial goal was to haul our grain. Since then we’ve expanded to oil, and later grain.” “We’re right back to 1910, when they pulled down that elevator in Tribune,” said Dennis Zackrisson, another farmer and investor in the railroad who was on hand for the first loading. He and his son Brennan farm 3,500 acres. He said to Owen and Kyle, “Your great-grandfather had to haul bags of grain to Halbrite. It took two days.” There’s now plans to load grain out of Tribune, Janice said. “This rail track goes through the middle of my land. We’re using a thing that was here,” Zackrisson said. Janice added, “We’re creating jobs.” Indeed, the railroad has two staff members so far. Ric Boxell is one of those two workers for the new railroad. He used to mine nickel in Thompson, Man., working both aboveground and underground, before retiring earlier this year. ɸ Page A9

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PIPELINE NEWS October 2012 Another tanker approaches the rail loading facility in the middle of the bald prairie.

From leŌ: Kyle, Owen and Janice Ashworth observed the Įrst rail car being loaded on Long Creek Railroad, a new shortline they are part-owners of.

ɺ Page A8 He had a little experience with underground railroads in the mine, he said, “but nothing like this stuff.” When general manager Bob Holden needed help, Boxell came. They have a family connection, and besides, retirement isn’t quite his thing just yet, said the 54-year-old. “I’ve got lots of years left.” Holden himself is also retired, having superannuated a little over a year ago. He spent 36 years with Canadian Pacific. “I was a maintenance foreman. I worked out of Bienfait. I worked in the Brandon division. It ends in Estevan.” In all those years, oil simply wasn’t a commodity they dealt with. Lots of coal, potash and grain, yes, but oil, no. It’s a new thing, Holden explained. As for retirement, he agrees with Boxell. “It’s not all it’s cracked up to be.” This first car is likely a portent for many more to come. Torq Transloading, the Shaunavon-based company that is doing the transfer of crude from truck to rail car, would eventually like to load unit trains of crude oil on this line. It took seven years for Canadian Pacific to sell the line to the new shortline. It has been a long time since the track that now belongs to Long Creek Railroad saw any action, so long in fact, that neither Janice nor Zackrisson could remember the last train. She recalled school trips riding on the train, with students either in the caboose or engine. Kyle is in a different type of school these days, as he is in his second year of an agriculture business diploma program at the University of Saskatchewan. Asked what he thought of being farmers in control of their own railroad, he said, “It improves your bottom line. Anything to keep your costs down, because expenses aren’t going down.”

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PIPELINE NEWS October 2012

Enbridge's bakken expansion underway

Avery SchoĆŠ is the construcĆ&#x;on manager for Enbridge for the Bakken expansion project in southeast Saskatchewan. His oĸce is in the basement of the Redvers Legion Hall. Photo by Brian Zinchuk

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„ By Brian Zinchuk Redvers – With North Dakota’s burgeoning oil production growing at an enormous rate, adding an average of 21,600 bpd each month since the start of the year, there is a tremendous need for increasing takeaway capacity. Enbridge, the largest pipeline company in the North Dakota Bakken play, has had a multi-year, multi-phase program in place to address this. This program saw the reactivation of the Portal link, Line EX02, reversing a line that had been essentially put on hiatus for several years. The next step in Enbridge’s Bakken expansion in Canada is to put in a new 124 kilometre, 16-inch pipeline from its terminal at Steelman, Saskatchewan to its mainline terminal at Cromer, Manitoba. New pumps and associated equipment are being installed at Steelman, and similar work is taking place at Cromer to receive the additional oil and join up with the mainline system. The pipeline is counter-intuitive in its round-about route. While the ultimate destination is for the North Dakota Bakken oil to go southeast via Enbridge’s mainline system, this project takes oil from Berthold, North Dakota, north through Portal, to Steelman. From there, the new pipeline proceeds northeast to the major terminal at Cromer, from which point it then heads southeast. While it may seem like the oil is literally going around in an almostcircle, the project takes advantage of existing infrastructure and rights-of-way, such as the Westspur system and the disused Portal link in particular. Construction of the pipeline got underway Aug. 1, with the project being run out of Redvers, which is the largest community near the mid-point of the project. The town of Redvers has seen a major inux of people for the duration of the project. Avery Schott, Enbridge’s construction manager, is based out of Redvers. His job is to manage the day-to-day activities of the construction. Pipeline News spoke to him in the basement of the Redvers Legion Hall, where the company has set up an extensive oďŹƒce facility. An American from Minnesota, he worked on the American portion of this pipeline prior to this job. Schott said they have a lot of good support, and he tries to stay engaged with all aspects of the project. That means going out into the ďŹ eld in addition to oďŹƒce work. “I need to see what’s going on on the ground,â€? he said. The project, at peak, will have approximately 300 people working for the contractor, Fort St. John, B.C.-based Surerus Pipeline Inc. A further 50 or so people are working for Enbridge, in positions such as inspectors and oďŹƒce support, to name a few. ɸ Page A11

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PIPELINE NEWS October 2012 ɺ Page A10 That’s an awful lot of people for a town with a 2011 census population of 975. Asked where they put them, Schott said Surerus put in a temporary campground with over 90 units. Enbridge itself paid for the doubling of the town’s campground, adding 28 units. “After we leave, the town will have an asset that’s a revenue generator,” Schott stated. Those sites are reserved for the company’s usage next year as the project is completed. Once done, he noted, “We basically hand them over to the community.” The company also paid for a 40site expansion of the Moose Creek Campground near Alida, as well, since the project was initially envisioned as having worked out of two locations, not just Redvers. Spare bedrooms in basements are also being rented by workers. Some pipeliners are making use of the new Western Star Inn and Suites, which opened just a few days before the job started. In addition, PTI had increased the size of its Redvers camp earlier this year. Others are staying in Carlyle. “They just seem to find a place,” he said. They will be there for a while yet. “We hope to have project completion by the middle November,” Schott said. The projected in-service date is in January 2013. “The weather has been very favourable for pipeline (construction),” he said. Up until Sept 12, they had

been making approximately 2.5 to 3 kilometres of progress per day. By that date, all the crews except cleanup had fired up. That crew was expected to start in late September. Despite the dry conditions, the contractor is boring under wetlands. Schott explained, “We had to be prepared for alternative installation methods due to the wet prior year. “You have quite a few wetland pockets and a high number of foreign crossings,” he said. Those crossings included underground lines, roads and overhead power lines. “The Town of Redvers has been very accommodating to the project,” Schott said. Indeed, that night the local arts council held a home-cooked meal for the workers as a fundraiser for a new digital projector for the town’s theatre. The idea was to give the workers a taste of home while away from home. Donna Jamieson, one of the organizers, said, “I have four of the guys staying at my house. We’re putting on a meal for the guys working on the pipeline. I’ve had some guys mention they would like a home-cooked meal.” She noted they were tired of restaurant food. The plan was to repeat the meal every two weeks. Turnout was low at the first one, as the project was by and large shut down for the latter part of the day due to high winds and reduced visibility. With such dry conditions, the right-of-way in some places was powder-dry and it was hard to see.

The Redvers Arts Council hosted a supper on Sept. 12 for pipeliners working in the town. The idea was to give the workers some home-cookin,’ while raising money for a new projector for the local theatre. Donna Jamieson, right, serves up some grub for Avery SchoƩ.

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PIPELINE NEWS October 2012

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Largest pipeline project in Saskatchewan this year kicks off Vantage Pipeline crosses southern Saskatchewan „ By Brian Zinchuk Calgary - – Nearly all pipelines between Canada and the United States ow one direction: south. We sell it, they buy it. It’s unusual then, to see a pipeline built in the opposite direction, but that’s exactly what is in the works right now. “This is very rare,â€? said David Schmunk, chief operating oďŹƒcer of Vantage Pipeline ULC. The Vantage Pipeline project is meant to carry liquid ethane from Hess Corporation’s natural gas processing plant near Tioga, North Dakota

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through Saskatchewan to interconnect with the Alberta Ethane Gathering System (AEGS) near Empress, Alberta. Empress is right on the Saskatchewan/Alberta border, where the South Saskatchewan River crosses into Saskatchewan. Vantage Pipeline ULC is based in Calgary and has the same management team as Mistral Energy. It’s a private company formed four years ago. The leadership has experience running gas processing plants and pipelines, operating Taylor NGL LP. “AltaGas bought us out four years ago,â€? Schmunk said. Alberta gas supplies are dropping due to a lack of drilling, which in turn, has been caused by low gas prices. As a result, the Alberta petrochemical industry is in need of more feedstock. Two plants in particular, at Jo re and Fort Saskatchewan, are in need, Schmunk explained. “They’re about 80,000 barrels per day short,â€? he said. NOVA Chemicals will purchase 100 percent of the ethane produced at the Tioga Gas Plant under a long term arrangement. Ethane is used as a feedstock for the world

scale petro-chemical facilities that are located in the province. At these facilities, ethane is converted to ethylene. Ethylene is the building block for a wide range of consumer and industrial products, such as plastics, antifreeze, rubber, detergents, and solvents. At atmospheric pressure, ethane exists as a gas and has similar characteristics to natural gas: it is colourless, odourless, non-corrosive, ammable and lighter than air. The whole Bakken area is very rich in ethane, Schmunk said, with up to 20 per cent of its solution gas being composed of ethane. It typically remains in the natural gas, and is sold at a much lower rate than what it can get once stripped out. “We’re hopeful as this pipeline gets developed, we’re able to tie into additional ethane sources in Saskatchewan and North Dakota,â€? Schmunk said. The company is in negotiations with TransGas for a straddle plant that would extract ethane o the TransGas system. “We’ve been working with TransGas for two years now,â€? he said. ɸ Page A13

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PIPELINE NEWS October 2012

Proposed Vantage Pipeline Project Route The Vantage pipeline runs in the opposite direcĆ&#x;on compared to most pipeline between Canada and the United States. It will Ňow south to north, not north to south.

Éş Page A12 In January, the National Energy Board gave its approval for the Canadian side of the pipeline. In a release dated Jan. 19, 2012, it stated, “The board is satisďŹ ed with the evidence provided by Vantage that Alberta’s domestic ethane supply is declining and will continue to decline for some time. Vantage demonstrated that there will be sufďŹ cient future ethane supplies and proceeding capacity for the project to be viable over its economic life.â€? The pipeline is 700 kilometres in length, with a total distance in Canada of 578 kilometres. Of that, 504 kilometres is within or alongside existing pipeline and road rights-ofway. While the 10-inch

line is not the largest diameter pipeline project underway this year in Saskatchewan, it is by far the longest project of its type for the current year. The $300-million line runs northwest from Tioga, crossing the international border just east of the intersection of the Saskatchewan, North Dakota and Montana borders. The line enters Canada near Beaubier, and goes west-by-northwest along Highway 13, passing near Assiniboia and Shaunavon. Near Gardenhead, it makes a right turn and heads almost straight northwest to Empress on the other side of the Alberta border. Pumping stations are slated for Assiniboia and Empress. These

500 horsepower, electrically driven pumps will be located in buildings designed to minimize noise impacts during the operation of the pipeline. The steel pipeline will be in high vapour pressure service. The maximum operating pressure will be 9,930 kilopascals (1,440 pounds per square inch). ɸ Page A14

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A14

PIPELINE NEWS October 2012

New pipeline goes against the grain ɺ Page A13 The Vantage project will have the capacity to transport 6,300 cubic metres per day (40,000 bpd) and will be expandable to 9,500 cubic metres per day (60,000 bpd) by adding two additional pump stations. Construction begins “We’ve got three spreads going in Canada,” Schmunk noted. All those spreads were mobilized by the first week of September. Kidd Construction is handling Spread A, the western portion, which will run from Empress to Highway 21 Spread A, the westernmost portion, runs from Empress to Highway 21, northwest of Shaunavon. It is being tackled by Kidd Construction. Spread B, which runs from Highway 21 to east of Assiniboia, is almost 300 kilometres, almost half the length. It will go as long as weather allows. It may be done by February, or may shut down for the spring. Schmunk noted, “In southern Saskatchewan, you can get fantastic falls, or you can get notso-good falls.” M&N Construction is responsible for this spread. A&B Pipeliners has Spread C, which goes from east of Assiniboia to 80 kilometres from the U.S. border.

They are looking after almost 100 kilometres. The last 80 kilometres will be bid out next year. Adjacent pipelines in a right of way and the nature of sidebooms dictates the direction of work. Spreads A and B will go from west to east, but spread C will go from east to west. Vantage estimates 400,000 manhours of work will be required to build the pipeline. Efforts will be undertaken to minimize damage to native prairie. The right-of-way will see full-width stripping on cultivated land, but only blade width or even bucket-width stripping in more sensitive areas. The Vantage Pipeline will meet or exceed all applicable engineering and regulatory codes, standards, and requirements, according to the company. All construction and operation equipment will be purchased from qualified manufacturers. To further improve the safety of the pipe, a corrosion-resistant protective coating will be applied to the outside of the pipe. The pipeline will be buried to a minimum depth of soil cover of 1.2 meters (four feet). All welds will be tested using non-destructive examina-

tion methods. After the welds have passed inspection, they will be coated to complete the corrosion protection process. Prior to being placed into operation, all pipeline sections will be pressure tested with water to at least 125 per cent of the pipeline’s maximum allowable operating pressure to ensure the integrity and operational safety of the pipeline. Once operational, the proposed Vantage Pipeline Project will be

monitored and controlled 24 hours per day, 365 days per year, from a central control facility using a state-ofthe-art supervisory control and data acquisition (SCADA) system. A leak detection system will continuously monitor the pipeline. In the event of the detection of any anomaly, block valves will automatically shut to isolate that portion of the pipeline. These automated block valves will be located approximately every 25 km (15 miles) along the pipeline.

Operating costs rise Torquay Oil Corp. production rose nine per cent during the second quarter of 2012 compared to the same quarter a year ago thanks to new volumes from Queensdale, and despite operations being shut in for six weeks due to spring road bans that reduced volumes by about 90 bbl. of oil equivalent per day. Production was up

31 per cent year to date compared to the same period last year. A seismic program that was shot at Queensdale in the first quarter has been interpreted, and the company expects to drill at least one additional location in this area in the third or fourth quarters of this year. Operating costs jumped during the second quarter due to a large, previously unbilled and unexpected processing fee that was received for third-party processing at Viewfield. This agreement was inherited at the time of the initial acquisition of the Viewfield property. The invoice covered processing charges from September 2010 to June 30, 2012. The charge related to 2010 and 2011 was approximately $277,160 or $3.31 per boe year to date. Operating costs were $24.40 per boe and $15.09 per boe for the three and six months ended June 30, 2012, compared to $17.78 per boe and $14.95 per boe for the three months and six months ended June 30, 2011. Capital activity was reduced during the

second quarter due to seasonal breakup and to maintain the balance sheet during this period of volatile commodity pricing. Replacement of a damaged tank farm at the Viewfield battery is well underway and production is expected to resume by mid-September. The financial impact of the damage to Torquay is limited to insurance deductibles of around $136,000, which includes a $25,000 deductible on equipment replacement and 15 days of net production. Average year-todate prices declined $4.60 per boe compared to the first six months of 2011, but have recovered substantially in the third quarter of 2012. Year-to-date netbacks have averaged $48.51 per boe for the first six months of 2012. One-time charges resulting in a net decrease in netbacks of $4.79 per boe year to date are not expected to reduce netbacks in future quarters. The company said it continues to evaluate the Bakken formation along with the emerging Three Forks play.

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PIPELINE NEWS October 2012

A15

Holly Bertrand gave up being a registered psychiatric nurse to work on pipeline jobs with her husband Dan, an excavator operator.

Dan Bertrand has been running an excavator for 18 years. Now he’s working with his wife as his oiler.

Husband and wife team on the pipeline Redvers – On larger pipeline projects, excavator operators don’t work alone. They typically have an oiler working with them, doing things like measuring the ditch, maintaining the machine, and keeping a second set of eyes out for things like powerlines. On the Surerus roadbore crew working on the Bakken expansion pipeline, the relationship between one operator/oiler pair was a bit dierent than most. Holly Bertrand could be found on the ground, working as a oiler. Her husband Dan was the operator. Holly’s new to pipelining, having done it for the past year, whereas Dan’s an old hand at it. Having run an excavator for 18 years since high school, his

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resume includes the Alliance Pipeline built in 1999-2000. “I’ve been all over, right across Canada,â€? he said. What’s even less common is seeing a registered psychiatric nurse working as an oiler. She explained that with everything factored in – extra hours and subsistence pay – she was making a little bit better than she earned as an RPN in Thunder Bay, Ont., where they call home. Working together can be a little dierent for a married couple. But Holly said, “We do everything together anyways. We snowmobile, we motorbike, we go out together.â€? As for nursing, she said, “I’m done.â€?

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A16

PIPELINE NEWS October 2012

Stampede Drilling about to head out of the gates „ By Brian Zinchuk Estevan – A new drilling company is coming together in Estevan, with two rigs under construction. Stampede Drilling is set to launch operations this October with Rig 1, which is under assembly at Do-All Metal Fabricating’s Estevan location. Rig 2 is on its way for the end of the year. Their rigs will be identiďŹ able by their metallic silver paint and metallic red trim. The operating area is expected to be southeast Saskatchewan and southwest Manitoba.

The company is managed by Darrin McKay, Bill Devins and Jackie White. “There are a number of local shareholders involved,� White said. “It’s broadly spread.� “We started building the middle of July.� McKay acts as president, and handles sales out of Calgary. Devins is in somewhat of a CEO role, White said, and he’s essentially quarterbacking the operation. “He wants to be called a roughneck,� she said.

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White’s role is secretary/treasurer, safety co-ordinator and oďŹƒce manager. “Everybody’s roles are overlapping,â€? she said. The ownership is Saskatchewan-based. Both McKay and Devins are originally from Saltcoats, White noted. Asked whose idea it was to form the company, White said, “We all kind of threw it out there. It was joking around, ‘We should do this.’ “We were approached by other people who are now shareholders who said, ‘Why don’t you?’ So we jumped in up to our necks. In June the decision was made to go ahead. “Darrin, Bill and I have made a good team over the years. We’re all very dierent, but have a common goal.â€? The rigs are being built by Do-All. “They have a good product, and are local. We are really trying to stay local,â€? said White. The rig manager’s shack is coming from Demby Trailer Ltd. of Weyburn. The engine packages are from Rouse Industries/Southern Industrial, also of Weyburn. “We’re running Cats on everything,â€? White said of the power package choices. Each rig will have two mud pumps powered by Caterpillar C32

engines and a single-speed Rouse MPD1 gearbox. There will also be two Cat C15 450 kilowatt gen-sets per rig.

“I’ve often heard you’ve got to like the guys you’re working with because you spend more time with them than your wifeâ€? - Jackie White Stampede Drilling The drawworks will have a Caterpillar C18 engine paired with a Cat CX35 transmission. This is only the second time such a pairing has been supplied by Rouse Industries. It’s a fully electronic transmission with advanced electrical features. ɸ Page A17

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PIPELINE NEWS October 2012 Éş Page A16 Having redundant mud pump and gen set systems provides peace of mind, according to White. “If one goes down, you’re sitting,â€? she said of rigs working with just one unit. “Companies don’t want that. “Our goal is to lead the industry in equipment, safety and productivity.â€? Asked why they would ďŹ re up with two rigs from the get-go, White said, “Financially, it’s a better decision to go with two. We feel we will not have any problems ďŹ nding employees for two. “You go o the same pattern when you do them at the same time,â€? she said. What is implemented on one rig is quickly done on the second, because you don’t have to try to remember how that was accomplished the ďŹ rst time. With approximately 30 fewer rigs working in Saskatchewan compared to the same time last year, there’s not nearly as much pressure to ďŹ nd sta as the industry saw in 2011, when a active drilling rig record was set in August. Stampede has people coming to them from all over. “We’ve got resumes from Alberta, Ontario, Manitoba. We’re just starting to get employees now,â€? White said. “We have a big pool of good workers out there.â€? Having a large pool to pick from is “deďŹ nitely an advantage for us,â€? she said. Once ďŹ red up with both rigs, the sta will be around 45 to 50. “You have to look within. Those ďŹ rst two rigs should man the rest of the company,â€? she said, referring to the practice of developing sta and promoting from within.

“We want to spend a lot of time with our guys, training, mentoring, passing down knowledge,â€? White said. By the ďŹ rst week of September, they were just getting their rig managers and drillers in place. “The training process is lengthy, and it should be lengthy. We, the industry, missed that the last few years. “We learn from the young guys,â€? White added. “They have different ideas. They’ve seen what works, what doesn’t.â€? Rig 1 was coming together in September, with the substructure and derrick coming up from Glenburn, North Dakota, and the boiler also on its way from Alberta. “The rest of buildings are all being built in Estevan,â€? she said. Some of the recent rigs built by Do-All have had a slide-out in the doghouse, allowing the driller to work indoors. That’s a design philosophy Stampede chose not to take. White said with the driller on the oor, they have better vision, and better eye contact with the other hands. They will have a heater under the driller’s station and another for the roughnecks. It’s not a common thing to have one for the roughnecks, but she said they are going to try it. “It’s not a cookiecutter rig,â€? White said. “Our walkways around the buildings will be made of ďŹ breglass instead of metal. They will all be light.â€? Everything is API, following CSA standards. Everything is (at that level) and above. There’s no iron roughneck, but there is an hydraulic catwalk. Stampede will have their own loaders, bins and tanks. Management will not have their own rentals.

Rig 1 is expected to go to work in mid- to late-October. Rig 2 is slated for December. “We’re hoping to get a hole or two in before Christmas,â€? White said. “We will be having an open house for shareholders and anyone interested before it goes out,â€? White said. The company is eventually looking at a shop near Estevan. “We’re not building anything yet ourselves. It will come,â€? she said. “We’re planning to expand, absolutely. “Let’s see what the industry is doing, and where we’re at. We want to be a happy place to work, and treat our guys well.â€? They intend on operating with eighthour shifts, like most of the southeast Saskatchewan-based rigs. That means four crews per rig, each working three weeks on and one week o. “You’ve got to have a home life away

from work,â€? White said about the choice not to go with 12-hour shifts. “Fatigue is hard on people. You end up killing someone on the road on the way home. “If you know you’re getting a week o, fun stu can be planned for when you are o. They need a life. “A swing crew means guys can switch shifts when they need a day o for things like a wedding or banking. “I’ve often heard you’ve got to like the

guys you’re working with because you spend more time with them than your wife,� White said. To that end, the company intends on having leadership training and mentoring. “It takes special people to do it. “What makes a rig work? Iron is iron. It’s the guys – the motormen, the rig managers, the drillers, the derrick hands, the roughnecks. They make the rig work. “Don’t get me

wrong. We’re proud of what we’re building. But we’ll be prouder of the men that make it work.â€? Regarding the future of the industry, White said, “Right now it’s slow, I know that. But I don’t think it will be slow much longer. My crystal ball broke yesterday, so I only have today. “I think we’ll deďŹ nitely be competitive. It’s the guys. If your guys are working for you, you’ll work,â€? White concluded.

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A18

PIPELINE NEWS October 2012

Takes energy to see the energy capital “They’ll never come,� my mother had said. My Irish cousin had just told me she and her husband were thinking of travelling to Canada in 2012. “They always say that.� It was September of last year and Mom and I

were in Ireland together for a family wedding. This was only my second trip to Ireland and I had been re-acquainting myself with family. My mother didn’t need to do that. Born in Canada to Irish immigrant parents, she had travelled to the

homeland of her parents 23 times. Mom passed away suddenly in May and although her death was acknowledged by her cousins with owers, no mention was made of any trip. So when my aunt called from Regina

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in August to say that Daphne and Pat were coming mid-September, I was surprised and pleased. Only one other cousin had ever made it to Canada from Ireland. Flying into Regina, Daphne and Pat had exactly two weeks in Western Canada before ying out of Vancouver for home. Two weeks to visit three provinces. Two weeks to see most of the 32 relatives living in the west. Two weeks to travel the 2000+ kilometres. “You can have them for one day,â€? my aunt said. “They have a lot to see and not much time.â€? No kidding. “What will you do with them?â€? she continued. “They’re coming to Estevan. It’s the Energy Capital of Saskatchewan. I’ll show them energy,â€? I replied. I arranged with my aunt to bring them to the Weyburn Tim Hortons early on the assigned day. The Irish were going to need the energy the coee and doughnuts provided. They had a lot to see and not much time. First stop on the energy tour was Panther Drilling, just outside of

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One Woman’s Perspective on Life, Liberty and the Pursuit of Land Locations By Nadine Elson Weyburn, where I had noted a drilling rig under construction. Close to the highway, my guests could view the rig fairly close up without the restrictions posed by a working rig on lease. Driving onto the property, I drove around the massive structure. I got out, wanting to get permission. I had the luck of the Irish that day. The man I was asking was the president of Panther Drilling, Cory Hicks. He was gracious and suggested a tour of the nearly completed Panther Drilling Rig 4. He and Jim Kopec, general manager, guided us around the rig that was then only three weeks away from completion. It had taken barely six months to assemble using a combination of fabrication on site and in Weyburn, and from components purchased from companies in Alberta. We started in the combination building which housed the lockers. We then went through the pumphouse, up the stairs to the doghouse and ďŹ nally onto the rig oor. Irish Pat was fascinated. He had spent time in the merchant marine and had fabricated medical

devices in Ireland, so he asked numerous questions. Jim explained how the blow-out protector system worked, and they discussed the hydraulics. Thanking Cory and Jim, I herded the cousins back to the truck. We had enjoyed exploring Rig 4, but we had to get going. There was still a lot to see, and not much time. We drove to Estevan for our next tour. Allan Wrolson, Senior Mine Engineer at Sherritt Coal’s Boundary Dam Mine, was our guide. He handed out hard hats, and we were taken by truck to another world, the world of strip mining. We bumped and drove over mine roads towards Big Lou, the dragline weighing 6 million pounds. Al told us Big Lou and two other draglines worked 24 hours a day to provide coal for Shand and Boundary Dam Power Stations. They removed the 110 feet of overburden (clay) to get to the 12 foot coal seam in long strips using buckets that held the equivalent of six dump truck loads or 100 cubic yards. At the end of the tour, Al presented them with small bags of coal. ɸ Page A19

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PIPELINE NEWS October 2012 ɺ Page A18 Personal energy levels were flagging, but sandwiches eaten on the way to the next stop, Boundary Dam Power Station, helped. The luck of the Irish was still with us, as we were greeted by Scott Walton, charge engineer. He is a 19 year veteran of the plant and a very knowledgeable guide.

We again donned hard hats, and ear protection for the noise, and were ready. He toured us from the original portion of the plant, A Plant, on the boiler sides to the newer part. A small peep door in one boiler was opened and we saw the inferno. Scott told us, that at the hottest part of the boiler, it was 2250 F. At full

load, he said, the boilers can use up to 14,000 tons of coal per day. We viewed control rooms, the turbine house on the operating floor, and the crane that my husband, Bruce, uses to lift the heavy machinery and parts during overhauls. After a very enjoyable afternoon, we said thank you and goodbye.

Our last stop on the energy tour was at A&W for beer; root beer that is. My Irish cousins had never before tasted root beer. While not exactly Guinness, we badly needed the pick-me-up. We all agreed–touring energy sites definitely takes energy! There had been a lot to see in not much time.

Note: Thank you to Panther Drilling, Sherritt Coal and SaskPower for the tours. It was eye opening, enjoyable and very interesting. My Irish cousins were especially impressed with the friendliness of the people of Saskatchewan. Any mistake in factual content is mine alone. Nadine lives in Es-

A19

tevan, with her husband and family, and works as a hot shot driver in the oilpatch regularly delivering goods in and around Estevan and Shaunavon, and Sinclair and Waskada, Man. Her mission, beyond delivering the goods quickly, is to have every interaction be a positive one. She can be reached at missiondriver@ hotmail.ca

A20

PIPELINE NEWS October 2012

There’s one way to go, from the bottom up

b o J p o T Cimarron Prince

Carlyle – There’s basically only one way to become a rig manager, or toolpush as they’re also known: the oldfashioned way – working from the bottom up. That’s been the experience of Cimarron Prince, who works with

CanElson Drilling. “I’m a rig manager on Rig 24 and a relief ďŹ eld supervisor,â€? said Prince. CanElson’s Saskatchewan operations are based out of Carlyle. Their assets in this province originate from

the purchase of Totem Drilling and Eagle Drilling Services in recent years. “I came from the Eagle side. I built Rigs 2, 3, and 4 with them. I started right at the beginning.� “This is my 23rd year

in the oilpatch,â€? said the 40-year-old. Asked about how he got his start, Prince said, “I built trailers in a little trailer shop for a few months. As soon as my paycheque bounced, I moved to Alberta to work.â€? ɸ Page A21

Cimarron Prince Job: Rig Manager and Relief Field Supervisor

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PIPELINE NEWS October 2012

A21

ɺ Page A20 Prince is from Insinger, a village southeast of Foam Lake. “I didn’t even know there was an oilpatch here at the time,” he said. “Originally I went to make money to go to school. I never did go to school.” He had been planning on being a heavy duty mechanic. His first drilling company was Precision Drilling. “I worked for them for nine-and-a-half years,” Prince said. “I bounced around to smaller companies when things were slow.” Noting the importance of having buddies out there, he said, “Everybody keeps you working.” Prince’s career has followed the typical path. He started as a roughneck for a month, then soon progressed to motorhand for the next four years. The following six years were spent working derrick. “I loved working derrick. I’d have to say it was my favourite job. You’re your own boss. If all is going good, no one bothers you.” In recent years, the shortage of experienced rig hands has meant some people became drillers with two to three years of first stepping on a drill floor. Not so in Prince’s day. “I didn’t start drilling until at least ten-and-a-half to 11 years,” he said. “Those times are gone. You’re pushing people up so fast.” When it was his time to step up, he got a bit of a push of his own. Mike “Cannon” Smith, the Can in CanElson, gave him that push. “We had a driller that got hurt. Cannon kept bringing guys out that were sketchy at best. I told him, ‘If that’s the best you’ve got, I’ll drill.’” “Thought you’d never ask,” was the response. ɸ Page A22

3D When he Įrst got into the business, Cimarron Prince didn’t know there was much of an oilpatch in southeast Saskatchewan. But since coming back from Alberta, it’s been his home and workplace.

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A22

PIPELINE NEWS October 2012

Rewarding career for a toolpush Éş Page A21 That was about 12 years ago. Smith now runs the Saskatchewan opera-

tion for CanElson. Prince drilled for six years, and since then has been a rig manager. Last summer he started

ďŹ lling in as a relief ďŹ eld superintendent, looking after either six or eight rigs, depending on whom he is ďŹ lling

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in for. “I always liked where I was. If I didn’t like it, I wouldn’t be there,� he said. “When I worked in Alberta, everybody worked twelves, but we slept in our own beds. Here, we work eights. It’s still shift work, but it’s a normal life. It makes it a nice, closeknit family atmosphere down here, part of the reason I came down here,� Prince said. He came back to Saskatchewan in the summer of 1999. He was initially based out of Insinger, but got a job working as a derrickhand with Big Sky Drilling (later called Ensign Big Sky Drill-

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talks with roughnecks over the years about things like the wisdom of buying a $70,000 truck right away. “What we do is seasonal work. We shut down a week to a month at Christmas. Then there’s road bans. We’re very weather dependent. “You have to weather the storm,â€? he said, both literally and ďŹ guratively. Not everyone can work in front of a computer, he noted. “You still need labourers. I think it’s a good career. I like working outdoors. It’s a bit rough and tough, but it’s kind of rewarding. “It takes its toll. You’ve got to work at it.â€? For instance, those aforementioned eighthour days are long gone as a rig manger. He lives at the rig for three weeks, and then has one week o.

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A23

A24

PIPELINE NEWS October 2012

They came, they saw, they are leaving a campground Redvers – What do you do when the project you are working on will bring 350 workers to a town of just under 1,000? In the case of Redvers, you oer to build onto the local campground. That’s what Enbridge did as part of its housing strategy for the Bakken pipeline project currently underway. The job is being based out of Redvers, with about 300 workers for the contractor, Surerus Pipeline Inc., and a further 50 or so for Enbridge. “They deďŹ nitely came to us as part of their accommodation strategy,â€? said John Seargeant, economic development oďŹƒcer with Redvers Regional Agricultural and Commercial Endeavours (RRACE). “The NEB (National Energy Board) asked them what their plan was.â€? The project added 28 new sites to the existing 28 sites at the Redvers Log Cabin Campground. Fourteen of the new sites have 50 amp electrical service, while the remainder have 30 amp service. All have sewer and water. The existing sites did not have sewer service, and had only 15 or 30 amp service. “Enbridge paid the full shot for the construction, and will turn it over to the town October 2013,â€? Seargeant said. The facility is fully booked for this year. He’s not sure how many sites they will require next year for cleanup work. ɸ Page A25

John Seargeant is economic development oĸcer with Redvers Regional Agricultural and Commercial Endeavours (RRACE).

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A25

Enbridge paid to double the size of the Redvers campground in preparaĆ&#x;on for its Bakken pipeline project.

Éş Page A24 Enbridge also expanded the Moose Creek Campground near Alida by 40 sites. The project was initially planned with two possible bases instead of simply Redvers. Redvers plans to add a shower house in the future, as the existing two stalls for each gender is not enough. “Enbridge has been terriďŹ c to work with and they’ve been appreciative of our eort,â€? he said. “In the future, we’ll have a terriďŹ c campground we can use.â€? By adding sewer service, it means campers in the long term can stay much longer than they could before. Eventually trees will be added to the new sites as well. Surerus also set up its own temporary campground on the north side of town. It went in very quickly. Other accommodations in use to deal with the inux include hotel rooms

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that were blocked o for some of the workers. “Our Western Star [Inn & Suites] hotel opened up a few weeks ago,â€? Seargeant said. The PTI Redvers Lodge expanded by 48 beds earlier in the year. Asked about the pressures the town has had to cope with the additional people, he said they were prepared for most, but laundry has been a challenge. “The hardware store is staying open a little later. The pharmacy is staying open one night a week.â€? ɸ Page A26

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A26

PIPELINE NEWS October 2012

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ɺ Page A25 The liquor store is also open on Sundays. The new Co-op opened recently, and has extended its hours one night a week as well. “Different businesses are seeing opportunities,” he said. Some are seeing increased sales, whereas for others, things are more normal. High demand in some cases means more competition for the locals. “Restaurants are up at least 150 per cent,” Seargeant said. “We have all these extra people. Some people extended their hours by an hour, to 9 p.m.” The gas station along Highway 13 is now making approximately 100 bag lunches a day. The Silvermoon In has been recently renovated. The Redvers Hotel is another option for accommodations. “Accommodations are hard to find anywhere,” Seargeant noted.

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PIPELINE NEWS October 2012

A27

Kim Baumert points out areas of the right-of-way where accommodaĆ&#x;ons have been made for migratory birds. Baumert is a ÄŽeld engineer on the Enbridge Bakken expansion.

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Redvers – As it turns out, birds are a very important consideration when building a major pipeline project. Ensuring they are not disturbed is part of the job of Kim Baumert, a ďŹ eld engineer on contract with Enbridge for its Bakken expansion project. “I ensure the pipe gets put in according to the speciďŹ cations and code,â€? he said. “In particular, if there are any changes due to site conditions, i.e. it’s wetter than expected, I go in and determine what we need.â€? ɸ Page A28

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A28

PIPELINE NEWS October 2012

Watch the wetlands Éş Page A27

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An example could be saddle-bag weights meant to keep the pipe from literally oating out of the trench. “Most of the problem areas, the contractor has chosen to bore rather than use wetland construction techniques,â€? he said. However, there have been dry conditions this year, at least up until midSeptember. “The dierence between June 1 and now is very surprising,â€? he said. “The weather has made things much easier.â€? Even so, he noted, “Any wetland of any depth, the contractor has chosen to bore under.â€? Cost-wise, he said it’s a toss-up. Digging an open trench means you have to do ditch de-watering. There are fewer long-term environmental impacts with boring, but “if it’s done properly, open cuttings restoration is successful, too.â€? One of the challenges of doing open cut installation in wetlands is knowing precisely where other pipelines in the same right-of-way are. In this case, the job is paralleling other existing lines. “A true success story is where you can come back a few years after a pipeline was built and you can’t tell it was built through a wetland,â€? Baumert said. Most of Baumert’s experience has been in the United States, where he said environmental concerns are slightly dierent. However, it all averages out, he added. “The pre-planning for this project was very good. The environmental protection program was well-thought out. Not many changes had to be made on the y.â€? There was a time not too long ago when projects like this started in June. Now, due to migratory birds legislation, such projects can’t get underway until the birds have left their nests. “That was the biggest impact to this,â€? Baumert said in explaining the Aug. 1 start date. They have had to adjust some shoeies (access roads) to accommodate some of the remaining birds, and have even bored under areas to avoid disturbing them, adding two tie-ins when that happens. “It creates a small move in and move-out, but those are the rules we signed in on, and we’re going to adhere to them. We’re not going to have a choice,â€? he said.

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PIPELINE NEWS October 2012

A29

Cromer terminal readied for bakken line Cromer, Man. – The point of Enbridge’s Bakken expansion project underway right now is to get more North Dakota oil into its mainline system. It joins the mainline at Cromer, Manitoba, just across the Manitoba border from Saskatchewan. The Cromer facility is an imposing site, one not expected on the Manitoba prairie. Just north of the Pipestone Creek and within its valley, the facility is a key part of Enbridge’s infrastructure. There’s a mix of old and new, with older buildings and new installations like a communications antenna in the centre of it that speaks to updates the facility has seen over the years. The new pipeline approaches the plant from the southwest, where a large horizontal drilling rig is working on crossing the Pipestone. From the river crossing, the line goes east before turning north, into the plant. Roger Foss, chief inspector for facilities, is looking after the project for Enbridge. “We are putting in a meter and a prover,â€? he said, driving by the nest of piles being installed for the additional hardware. “We’re tying-in the Bakken line from Steelman.â€? Those pilings are for the pig receivers. Work got going at the end of July. A new access road was built up one metre high on the south side of the facility. It should be done by Christmas, Foss said. The ďŹ rst Interprovincial Pipe Line Inc. (former

Piles are installed to receive the new pipeline entering the Cromer facility.

name of Enbridge) mainline was built in the 1950s. As a result, the Cromer facility has a lot of legacy installations. You don’t scratch dirt without ďŹ rst undertaking extensive hydrovacing. In this case, the entire trench line within the plant was hydrovaced before any digging. “When you’re in a facility, it’s generally good practice,â€? Foss said. “In the old days, they didn’t always make proper drawings.â€? “We bring electronic sweeps out, and they’ll sweep the area and stake it, then go so many feet on either side of a known pipe.â€? He noted it’s cheaper to pay for a hydrovac than have a line strike.

As for the construction process, he said, “First you do your survey. We had to do a bunch of demolition ďŹ rst and then resurvey. “We’re starting at the receiver trap and coming north into the plant. We get all the lines in, hydrotest, and hand the keys over.â€? The new pipeline will tie into the main manifold. From that point, it can be directed into one of the several mainline pipelines, or into storage tanks. This part of the project will not see any additional tankage added to the facility. However, something dierent is happening to one of the large tanks on the north side of the facility. ɸ Page A30

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A30

PIPELINE NEWS October 2012

A large tank is being jacked up to install a new course of at the boƩom.

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Tank being jacked up ɺ Page A29 Surrounded by jacks, the empty tank will be lifted, allowing another course of steel to be added at the bottom. The result will be a taller tank, with a larger capacity. It’s a process similar to how corrugated steel grain bins are built, except that instead of using a crane to raise it, jacks are used instead. “This is the first time Enbridge is trying this in Canada,” said Amber Pastoor, Enbridge spokesperson.

PIPELINE NEWS October 2012

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A31

A32

PIPELINE NEWS October 2012

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PIPELINE NEWS

SECTION B October 2012

Entrepreneurship in the Swayze blood b o J p o T

Above: Jerry Swayze from earlier days. Photo submiƩed. Right: Current photo of Jerry Swayze at his shop. Photo by Brian Zinchuk

By Brian Zinchuk Carnduff – There’s no question entrepreneurship can be a strong family trait. That idea is proven out by the Swayze family of Carnduff, who are entering their fifth generation as business operators in southeast Saskatchewan. “One of the biggest things that comes to mind as far as Swayze’s goes is these guys are the fifth generation of Swayzes that have had a business in Carnduff, and we’re working on the sixth,” said Jerry Swayze, who heads up Swayze Concrete Ltd. “The very first was a machinery dealer and blacksmith, my great-grandfather. My grandfather was in plumbing and heating.” His parents, Orvil and May Swazye, started what was then known as Swayze Red-e-Mix Ltd. “It was actually started around Oxbow.” The company was founded in 1960, and has been in business for 52 years. It’s been a long slog, however, but one that saw the company grow phenomenally in recent years.

“In Saskatchewan, other than the last four or five years, there wasn’t a lot of business in concrete. You didn’t turn down any jobs, period. You had to diversify in a lot of ways to keep going,” Jerry said. “I graduated in ’76. To keep me home, we sold snowmobiles and quads and stuff. We got out in ’88 when we bought the other redi-mix plant. “In 1996, I became owner of the company,” Jerry said. “My father handed over an estate freeze.” Three sons, Randy, Ryan and Colby have shares as well. The fourth Swayze son, Bradley, is working in Calgary and is not active in the business. Jerry’s wife Cynthia has also spent her life as an entrepreneur. Cynthia and her business partner (and aunt) Fran Spencer took over a local restaurant known as the A&M Drive-Inn in 1980. They sold it earlier this year. “Thirty-some years in the food industry is a long time. It was fast food and fine dining. You could have a steak and lobster and a drink at night,” he said. “My sister, Verdeen Mathewson, has been my controller forever,” Jerry said.

“She’s put her heart and blood into it as much as anybody.” Growth In 1988 Swayze’s established its first satellite location, just north of Moose Mountain Provincial Park. It was known as the Wawota branch, but now is referred to as Carlyle. They also have an office on Carlyle’s Main Street. “We were a very small company buying a big company. That happened in 2005,” Jerry said. At the time, Swayze’s had eight to 10 employees. “When we purchased Larsen’s, we went to 35 to 40.” “In 2006, we bought Borderline Gravel Ltd. and grew by another 12 people. Today we’re over 100.” Jerry said, “When you make a transaction to buy out two companies like that, you dream of having what we have now. “It’s been a challenge to keep up.” As part of the Larsen purchase, Swayze’s added facilities in Assiniboia and Gravelbourg. They also have a wash plant in Radville. ɸ Page B2

Jerry Swayze Job: Entrepreneur Education/Training: Grew up in the business Prior experience: Lifelong involvement in family business Quote: “It’s the good people: the admin staff, the drivers, the operators, the labourers, the mechanics, etc. that contribute to the success of the company.”

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B2

PIPELINE NEWS October 2012

Ryan Swayze looks aĹŒer Stoughton and west. He does esĆ&#x;maĆ&#x;ng and handles the trackhoes for the company.

Colby Swazye looks aĹŒer the company’s concrete pumps.

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Éş Page B1 “All our concrete aggregates come out of Radville and are processed in Weyburn,â€? he said. The company’s access to aggregates is widespread. “We are involved in about 34 pits,â€? Jerry said. “Mostly we have control of them, under contract.â€? “We have 1700 wheels on the ground,â€? he noted. There are approximately 240 units in the entire eet. That includes 24 loaders, about 20 cement trucks, three concrete pumps and two crushers. They have close to 30 tractor units and seven leased operators working with them. There are about 60 trailers as well. OilďŹ eld involvement Swayze’s primary role in the oilďŹ eld is supplying aggregates used for pipeline sandpadding, sub-bases for pumpjacks, and leases. “We do some excavation and hauling of contaminated soil,â€? he added. “In the last three years it’s been pretty steady,â€? said Jerry. Randy noted they also have done concrete work for a number of shops and residences that have been linked to the oilďŹ eld. The growing population in southeast Saskatchewan has meant a need for more housing, and with it, more subdivision work. “We’re getting huge into sewer and water, laying pipes and services,â€? said Jerry. Their six excavators see a lot of work in that regard. In Radville, they put in 25 lots. Alameda saw another 17. Arcola had 30 over the years and another 17 this year. They’ve also done similar work in Carlyle. ɸ Page B3

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PIPELINE NEWS October 2012 Éş Page B2 “We’re doing a lot of infrastructure work for the City of Weyburn. We also have eight to 10 small towns that call us on a ďŹ rst-call basis,â€? Jerry said. Indeed, they’ve found a need to supply housing for their own workers. Two are staying in campers at their Carndu location. They’ve had to buy housing to rent to sta as well. “We’ve got a few places in town,â€? Jerry said. Business changing For a company whose operation was founded around concrete, ironically, they are ďŹ nding pouring concrete is now a smaller part of their business. “Aggregates, excavation have grown. We’re still growing,â€? Randy said. “In the last two years we’ve grown 80 per cent in sales, and this year, we’re on track for another 30 per cent. These are numbers we’re not used to seeing. But we’ve got a lot of good people that help us. It all comes down to good people. “I wanted to make sure we put an emphasis on the fact that it’s the good people: the admin sta, the drivers, the operators, the labourers, the mechanics, etc. that contribute to the success of the company.â€? Roles As for the management roles, Jerry says he oversees everything. “I manage the east half, from Stoughton to Manitoba, doing dispatching and co-ordinating,â€? said Randy. “Ryan does from Stoughton west. He does estimating and handles the trackhoes,â€? Jerry said. “Colby looks after the concrete pumps.â€? In Weyburn, Dennis Jones looks after dispatching and managing. “We have Tom Sanders of Weyburn who looks after our crushing and screening departments. We have Mike French who manages the Carlyle plant. Bernie Fouillard looks after Assiniboia and Gravelbourg,â€? Jerry said. Another key player is safety co-ordinator Tammy Sprecken, whose job includes keeping the up to speed with everything from the company’s CertiďŹ cate of Recognition program to numerous safety orientations for individual oil producers. One producer, for instance, has three dierent orientations. Communications With such a widespread operation, communications are key. Swayze’s is one of the few remaining companies that relies on the 10-4 system for SaskTel Mobility, a push-to-talk service similar to Telus’ Mike service. “We would be lost without it. We issue one of those to every one of our guys,â€? Jerry said. You can’t hear a radio in the truck when you’re standing at the back, he pointed out. However, since the service is likely not going to be around a lot longer, they need an alternative. Jerry has been told SaskTel is looking at an

B3

app for smartphones that would allow them to move to a new system. These days, 3G-enabled iPads are a crucial business tool. “I can take it anywhere,â€? Randy said, pulling up their entire equipment list on a spreadsheet. Future growth “We plan on building a new mechanic shop and oďŹƒce in Carndu and a truck storage facility in Weyburn,â€? Jerry said. They are hoping to add onto the Carndu plant and oďŹƒce this year. “We’ve outgrown that oďŹƒce many times,â€? he said. Asked about future growth, Jerry said they are always looking. Pointing out that their head oďŹƒce is in Carndu, near the Manitoba border, he said, “We would like to go east. “We do crushing in Manitoba.â€? Randy added, “We do supply a little bit of material there, but not a lot.â€? As for other borders, the company has gone across the 49th parallel as well. Jerry said, “We used to haul quite a bit into the States, to Sherwood, North Dakota, 20 miles south. Our pricing got too high to go across the border with the exchange rate and higher cost. “I don’t know how many companies have poured concrete in two provinces, one state and two countries at the same time,â€? he added with a laugh.

Randy Swayze, leĹŒ, manages their eastern half of operaĆ&#x;ons, while patriarch Jerry Swayze looks aĹŒer the enĆ&#x;re operaĆ&#x;on. Photo by Brian Zinchuk

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PIPELINE NEWS October 2012

New motel made of modular components

Greg Bryson shows oī the interior of the new modular hotel.

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By Brian Zinchuk Estevan – The Bryson family has been thinking about it for several years, and now they’ve pulled the trigger on setting up the newest accommodations in the Estevan market. Called the Canstay Motel, the new facility was being set up in mid-September, with its opening planned for later in the month. The motel is similar to a camp in design, and an extended stay hotel in concept. Room service will be provided once a week. The operation is being run by Theo Bryson, and his parents Greg and Lynn Bryson. Theo is a civil servant in Regina while Greg and Lynn both work for SaskPower when they aren’t running the family farm. “It’s been a long haul, getting all the paperwork done,” said Greg, standing on the wind-swept prairie where the motel is located. The site is 12 miles west of Estevan on Highway 18, and one mile south on a grid road. It’s just north of their family farm, and the closest land they have to the highway. Unfortunately, not many people are interested in selling land along the highway, according to Greg. “It took us three months to get the units in and then put into place,” Greg said. The motel is an implementation of the Saskatoon-based 3Twenty Solutions shipping-container modular building system. As of Sept. 9, they had five containers in place, and another three on the way. Each container has two units, with outside private entrances on each end. There are no hallways. Entering a unit, you find a small triangular desk under the window. The twin-sized bed has storage under it, and a flat-screen TV with a built in DVD player on a shelf above the foot of the bed. Further into the room is a kitchenette with a fridge, sink, microwave and cupboards. Finally, there’s a private washroom with a toilet and shower. The moving and placement of the containers was done by Lampman-based Extreeeme Transport, which has a truck with a special side-loading trailer meant to load and offload containers. They are already have a second phase planned. Greg said, “If need be, we’ll be putting in another row.” That would add another eight containers, with 16 units, to the site. “We’ve had a large amount of interest,” Greg noted. “If we were open (earlier), we would have been full months ago.” ɸ Page B5

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PIPELINE NEWS October 2012 Éş Page B4 The interest has come from fracking companies as well as other major projects in the area. “There’s lots of oil activity south of us,â€? Greg said, pointing out that trucks drive by the site every day. “It’s 15 minutes out of Estevan,â€? he said. It takes about as much time to get to Boundary Dam Power Station, site of a major carbon capture project, from their motel as it takes to get there from the far side of Estevan. That’s where a lot of the recent hotel construction has been. “There’s so much interest in the immediate area. We’ve even had interest from mines elsewhere,â€? he said. If business dies down, the facility can be easily relocated elsewhere if needed. By using durable shipping containers, they are expected to maintain their integrity well. “They’re not permanent structures, so it’s easier to move them,â€? Greg said. “For us, half a day’s work and the camp can be up and moved. “It was Theo’s idea originally,â€? Greg said. “We discussed it over coee many times. We started crunching numbers and drew up a business plan. We decided to take on this venture.â€? “We’ve been thinking about this for quite some time,â€? he noted. Theo said, “My mother had an idea for a camp where people can bring in RVs. We developed that into this. “We liked the idea of being moveable and being able to take it wherever the demand is. “We saw it on Dragon’s Den. We priced it out and with some other providers. We found the value with the 3Twenty guys. They made a good product. We thought maybe we could make our own, but we thought it would be better to buy them and focus on renting them out.â€? Theo attended the University of Regina Paul J. Hill School of Business where he obtained a bachelors degree majoring in accounting. One of his goals has been to run his own business. It’s one way to diversify the farm. “It looks like a solid business plan. Let’s look at it and see what we can do.â€? The rates they intend on charging put it the Canstay at the more aordable end of the spectrum for temporary accommodations. The plan is to oer weekly or monthly rates. Ideally, they are looking for long-term contracts. Housing is a big part of oil company budgets these days, Greg noted. “They want long-term. That’s what the clientele is looking for. “It’s private. You’re away from the hustle and bustle of the city,â€? Greg said. Having a private washroom is a plus, compared to dorm-style camps, he noted. As for the wind, which can be noticeable at times when standing outside, he said “We’re setting up portable fencing for a shelter break until we get our trees planted.â€? ɸ Page B6

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3Twenty builds new motel units Saskatoon – 3Twenty Solutions Inc of Saskatoon ďŹ rst gained popularity by making a pitch on CBC’s Dragon’s Den two years ago. Since then they have been growing their business substantially. The Canstay Motel west of Estevan is one of their most recent projects. “It was a new design,â€? said Bryan McCrea, president. He added it was a spino of a design they did for housing for an Estevan-based oilďŹ eld services company. “There’s no question there’s not enough infrastructure to meet the demands for housing,â€? McCrea said. The company had proposed building and operating its own camp just east of Estevan, but that project fell through, according to McCrea. “We weren’t getting enough commitment. We had to pull back.â€? The land has since been released. “If we didn’t have so much going on elsewhere, we would have taken another peek,â€? he said. “We’re doing a lot of work in Fort McMurray.â€? The company has now added a rental division, he stated.

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B6

PIPELINE NEWS October 2012

There’s plenty of room to park around the new Canstay Motel.

Thinking long term ɺ Page B5 Once inside a unit, however, one does not notice the wind at all. Greg said the R-rating is “probably better than your house” for insulation value. A new roadway approach was being constructed, as well as a sewage lagoon, placed at a distance from the facility. Laundry facilities are planned for the future. Finding adequate, good quality water was key to the choice of location. While they could have perhaps purchased a small acreage elsewhere for the facility, they might not have found sufficient water. By setting up on their own land, and knowing they have water, those issues are taken out of the equation. “We checked into other possible sites closer to Estevan, but with the pricing, it wouldn’t have been feasible,” Greg said. One key consideration for clients like frac companies is adequate parking for their heavy trucks. Being on the edge of a field, they have all the parking they could need. Gravel is being brought in for that purpose. Signage along Highway 18 is also planned. The Canstay will offer Wi-Fi internet service with boosters in each room. There will also be a SaskTel booster for improved cellular service on site. While the rooms are capable of having landlines, Greg noted, “Everyone I asked said, ‘don’t bother.’” Cellular communications will be the order of the day. There’s some picnic tables on the lee side of the containers, and several barbecues will be made available for client use.

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Anatomy of a Highway 63 rollover Editor's note: Boyle, Alta. – Thousands of people, including many workers from Saskatchewan, risk their lives each day on Alberta’s Highway 63, the route between Edmonton and Fort McMurray. It has gained the moniker “Highway of Death� for good reason. There has been a growing call to have the entire highway twinned, but progress has been slow. On Aug. 23, a single vehicle accident occurred approximately 30 km south of Boyle. The rollover occurred on the opposite side of the road to where Chris Neitling, a retired paramedic from Preeceville, Sask, was travelling. Neitling now works in management in pipeline and facility construction in northern Alberta, and was on his way to Edmonton for meetings when the accident occurred. He had to take evasive action into the ditch to ensure he didn’t get hit himself. The Toyota Camry was literally in mid-air as he passed it at highway speed in the opposite direction, with just the width of the northbound lane between them. He pulled over immediately and rendered assistance. Having been a long-time paramedic in Saskatchewan for various local ambulance services and later as a pipeline medic in Saskatchewan, Nova Scotia and Alberta, he’s no

stranger to these sorts of events. Neitling himself received a commendation for bravery from then-Governor-General Adrienne Clarkson for, along with his EMS partner Greg Bishop, having pulled a man out of a aming semi carrying liquid asphalt before it exploded. That event occurred on Highway 1 in Moose Jaw on May 17, 1997. Even with such experience behind him, Neitling reports that the Highway 63 experience shook him up. He suspects the driver of the Toyota fell asleep at the wheel. The accident occurred at approximately 4:30 p.m. local time. The road was dry at the time, but a storm closed in as they were continuing to extricate the last two victims from the rolled over car. Neitling said the oilpatch often gets a bad rap, but nearly all the people who pulled over to render assistance in this case were oilpatch workers, including personnel from Tervita and Hazco, along with an independent welder. They were ďŹ rst aid-trained and had the equipment to help. “Those in Lexuses drove by and didn’t stop,â€? he said. Below is his highly detailed account of what he saw take place, as well as his actions and those of several other travellers who jumped in to help before

emergency services could arrive: While travelling southbound in the west lane of Highway 63, in BCES Unit 0205, I, Christopher A. Neitling, did notice a brown four-door sedan in the northbound/ oncoming lane. The vehicle drifted onto the shoulder (eastern ditch) and then departed the roadway surface at highway speed. The oncoming vehicle then hit the approach on the east side of the intersection of Highway 63 and township road 641 and launched o the approach at an approximated angle of 30 to 40 degrees. It was airborne for approximately 30 plus meters at which time it nosed over and dove grille-ďŹ rst in a near vertical manner into the ground. The vehicle then bounced o its grille proceeded to travel through the air upside down for approximately 10 metres, landing on its roof with the front of the vehicle facing south or opposite of the original direction of its travel. When the vehicle landed on its roof, several items of personal eect ejected from the vehicle’s interior and trunk.

During the aforementioned, I took hard evasive action, by emergency braking, and took the west shoulder/ ditch to avoid a potential collision with the oncoming vehicle. I performed an emergency stop and then immediately backed up on the westbound shoulder to the area of the vehicle’s ďŹ nal impact. I activated my four-way ashers, departed the vehicle and sprinted across Highway 63 to the vehicle which was overturned as described above. The roof was severely compacted. The

A, B, and C pillars of the roof appeared to suer extensive damage and compaction, to the point I was unable to see the occupants of the vehicle. At this point other motorists had stopped and I directed a bystander, a gentleman of Middle Eastern ethnicity approximately 5’4� salt and pepper hair, brown eyes, approximately 145 pounds to call 911. He then handed me his phone and I called 911 where I stated there had been a one vehicle collision with rollover with the occupants entrapped.

I then gave the phone to his son(?). I proceeded around to the passenger side of the vehicle as I came around the vehicle I heard an infant crying faintly from inside the vehicle. When I rounded the rear of the vehicle, I saw a small female child approximately 24 to 36 months old sitting outside the vehicle, she appeared uninjured physically but was clearly dazed/confused. She wasn’t making any sounds; she made brief eye contact with me. ɸ Page B8

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PIPELINE NEWS October 2012

Pry bar used to extricate man who was trapped on top of small girl ɺ Page B7 The aforementioned gentleman had rounded the vehicle from the front and met me at the child’s location which was directly beside the passenger’s rear door approximately two feet from the vehicle, where she was sitting partially on what ap-

peared to be a backpack. I directed the gentleman to take the girl up to the road and attend to her, to keep her from going into shock and ensure she is kept warm. He took the child found outside the vehicle (child No. 1) up to the road way clear of the vehicle as, we (those who stopped)

were uncertain as to whether the vehicle was going to burn. I got down on my hands and knees and crawled partially through the passenger back window (smashed out on impact). I cleared away several pieces of personal items, including bags and what appeared to be part of a booster seat when I

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found two adult legs orientated in supine position. I observed an ankle bracelet and determined from skin coloured, and determined the legs belong to a woman of East Indian/Pakistani ethnicity. It was at this point I saw the small left arm and hand of a child, it appeared listless, and there was debris covering the rest of what appeared to be a child. Behind the debris and personal effects, I heard what I assumed to be a male. I cleared away the debris and observed the following: 1.) A small female child 12 to 24 months old (child No. 2) lying supine on the interior roof of the vehicle. 2.) A heavy set male who was balled up in what was the driver’s seat with his posterior firmly against the steering wheel, his legs balled up and his chest pro-

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truding into the back seat area with his upper chest and his head resting on child No. 2’s chest and abdomen in a prone manner. 3.) An adult female, lying supine on the interior roof liner of the vehicle with her head not far from what was the centre console of the front seat area and her feet out towards the rear passenger window. The adult male was entrapped and was struggling to free himself; he was putting his weight repeatedly on child No. 2. She appeared listless, obtunded and wasn’t neither moving nor crying at this point. The adult male was in a state of panic and was speaking rapidly in language I assume to be Pakistani or Punjabi. I made the decision that it was essential to attempt to extricate the male to get him o child No. 2 as she was clearly in distress. I then went up to the roadway and called for a pry bar, a welder in a black Chev welding rig stopped and gave us a six-foot heavy duty Cat bar. I went back down into the ditch and went directly

to the driver’s front door and attempted to pry it open but was unable to get a purchase point. I then went to the passenger’s front door and with the help of “Dawda,â€? an AfricanCanadian gentleman of muscular build approximately 5-foot, 10in., shaved head with silver earrings bilaterally, approximately 195 pounds, and a taller slender gentleman of Slavic origin. We, the three of us, began prying the passenger door open as best as possible. We started at the bottom middle of the car door and worked our way around to the locking mechanism when the sheet metal and structure of the door tore open. This took somewhere around ďŹ ve minutes. I was unable to obtain a purchase point without risking the pry bar slipping and hitting the adult female victim. With the sheet metal pried away from the passenger rear door, I got down, reached upside down into the vehicle, found the door handle and opened the door partially, I then got up, stepped back and we reefed the door open. ɸ Page B9

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B9

Patch workers stop to assist trapped family ɺ Page B8 We then moved around to the rear driver’s door, I grabbed the handle and reefed the door open and bent it out of the way. We moved to the driver’s front door and proceeded to open it when we noticed the male victim, who was still in the position as described above, had his left hand out of the vehicle and it was wedged between the top of the door frame and ground. We instructed him to move his hand and once his left hand was clear, we reefed the door open as hard as we could. The door opened, the entrapped male repositioned himself slightly and then literally fell out of the vehicle sideways in a limp, uncontrolled manner, resembling a bag of potatoes falling over. Shortly after the male victim sat up, near the driver’s rear door child No. 2 began crying and kicking vigorously. We instructed the male to tell child No. 2 not to move. I then directed the Middle Eastern gentleman caring for child No. 1 to return the child to the male, who I assumed was both children’s father. Child No. 1 was returned to the male and he proceeded to comfort her. He appeared to have a substantial laceration to his left hand (not life threatening). Sometime during this point, I updated 911 dispatch that all four victims were at this point stable and conscious. The welder left and the Middle Eastern gentlemen who gave me his phone and cared for

child No. 1 departed the scene with his son. A female bystander, slim, wearing “skinny jeansâ€? with a white studded belt and a plaid button shirt, mousy brown hair crawled into the driver’s front and attempted to give ďŹ rst aid to the adult female victim who appeared to sustain multiple facial traumas of a non life threatening nature. A heavy set gentleman wearing a white T-shirt and a well worn safety vest attended to the cut on the adult male’s left hand. A small grey subcompact vehicle arrived on scene, we motioned them to leave, and then a young female EMT in an EMS uniform departed the vehicle. I gave her a report and stepped back to allow her to do her job. Shortly thereafter the ďŹ rst EMS ambulance arrived and I gave a report to another male EMT, the EMS scene supervisor(?), I identiďŹ ed myself as a retired paramedic, and explained what we had done prior to his arrival. It was at this point a heavy rain shower with lightning descended on the scene. ɸ Page B10

There's a lot of acĆ&#x;vity going on around Enbridge's Cromer, Man., terminal. This picker and excavator could be found driving past it on Sept. 12. Photo by Brian Zinchuk.

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B10

PIPELINE NEWS October 2012

Bad weather arrives at same time as emergency services

This service rig was sighted near Redvers on Sept. 12.

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ɺ Page B9 Two RCMP cruisers approached the scene from the south on Highway 63. When the two constables approached, I flagged them down, and proceeded to explain I had witnessed everything first hand. It was at this point I became emotional and was unable to speak. Cst. Hayley Scott, Redwater Detachment, then took my particulars and my driver’s licence and asked me to sit in my vehicle. I sat in my vehicle

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for about five minutes and saw another crew vehicle with two people carrying a large orange tarp. I got out of the vehicle and went back to help hold the tarp as it was raining very heavily at this point. EMS and fire/rescue were using hydraulic extrication tools to get the adult female out by cutting off the driver side doors. We then moved the tarp over to the passenger side of the vehicle and EMS with fire/rescue began cutting apart the passenger side to get the female victim out. Sometime during this extrication, I witnessed one of the children being carried on a spine board to an ambulance and then witnessed it departing north towards Boyle, Alberta on Highway 63. Shortly after I saw Cst. Scott approach

my vehicle looking for me. I flagged her over to where I was still holding the tarp. We, Cst. Scott and I, returned to my vehicle, where I gave an audio statement as my hands were shaking. My audio statement concluded at 1610 hours MST 23/08/2012 and I departed the scene shortly thereafter. Editor’s Note: Redwater RCMP Cpl. Guy Perreault told Pipeline News the victims of the crash sustained minor injuries. All four were checked at hospital and released. No cause of the incident was given and while a collision reconstructionist was consulted, they did not attend. Cpl. Perreault said twinning Highway 63 “would def initely be a good idea. We have had our share of fatal collisions on this highway.”

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PIPELINE NEWS October 2012

b o J p o T

Gary “PuÄŤyâ€? Cameron has spent 59 years in a pipeline career that has seen him visit 64 countries and he has no intenĆ&#x;ons of quiĆŤng. He’s sĆ&#x;ll married to the same woman.

Gary Cameron Job: Pipeline Welder/Inspector Training/Education: On the job. Started work at age 15. Advice on getting into this line of work: “Technology has changed so much, young people don’t have the ethic of a young farm boy. You have to have some insight into what you want to do with your life. You can’t mind hard work; challenging work, with long hours and working away from home.�

No end in sight for Gary Cameron „ By Brian Zinchuk Redvers – The year Gary “Puyâ€? Cameron ďŹ rst started pipelining, Canada was still ďŹ ghting the Korean War. Now, just shy of six decades later, he’s still at it. Cameron is currently the senior welding inspector for Enbridge on its Bakken expansion project, based in Redvers. A welder by trade, Cameron ďŹ rst started pipelining in 1953 at the age of 15. “That was with TransMountain, or TMX. I was a labourer,â€? he said while seated at his desk in the Redvers Enbridge oďŹƒce before heading out into the ďŹ eld. True to form, he was wearing overalls. “I worked on the ďŹ rst and the last TMX. Now

there’s talk of a TMX expansion in 2014. “Back then, I was a welder’s helper. In those days, it was all American welders. We only had about six Canadian pipeline welders in the country.â€? Cameron, himself, started welding in short order in 1954. The pay was enticing, he noted. Back then, welders weren’t paid by cheque, but by a pay packet of cash. “I happened to see a welder’s pay packet,â€? he recalled. That led to the decision that “I’m going to be a welder. “This is pretty intensive work now. I love it. I wouldn’t change it,â€? Cameron said. He’s 74 years old, but Cameron is quick to point out, “That’s only a number.â€? ɸ Page B12

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PIPELINE NEWS October 2012

In the business of pipelining since 1953 Éş Page B11 When he got into welding, there was no such thing as a journeyman ticket for his trade. He worked under a red ticket from the Department of Public Works. Methods have progressed over the years. “I’ve done all those things – vapour latch and granny rag. You poured it in a ďŹ ve gallon pail and ran paper through it,â€? he said of a now-obsolete coating method. “I’ve worked every aspect, from truck driving to winch truck. Welding is my forte,â€? he said. One of the innovations over the years is the use of machines to weld the pipe. But don’t call it automated, as Cameron said, “Mechanized welding is not ‘automated welding.’ You still control the machine.â€? Mechanized welding had made it a lot easier to have a longer career. “It’s not as demanding on the body. It adds 10 to 15 years to a pipline career.â€? That’s important, as he explained welding is essentially a “young man’s game.â€? “You welded in the rain and wind.â€? To do a proper weld around a pipe requires the welder to at times nearly stand on their head to get the job done right. Cameron noted the need for great manual dexterity. “You adapt to whatever is put in front of you. The X-ray on the hill is the same as the X-ray on the at,â€? he said of the quality assurance inspection. He ďŹ rst saw mechanized welding in 1973 while working on the North Sea. It took until the late 1970s and early 1980s for the practice to take hold on the Prairies.

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Cameron started working as a pipeline inspector in 1974, with Bechtel in Montreal. Pipeline work is highly cyclical. There are spurts of intense activity in Canada, and then long lulls lasting many years. As a member of the United Association of Journeymen and Apprentices of the Plumbing and Pipe Fitting Industry of the United States and Canada (UA), working with non-union outďŹ ts was problematic. “That was the basic reason I started working overseas,â€? he said. He couldn’t work with companies in Canada that weren’t UA-certiďŹ ed. When there wasn’t work in Canada, it was time to hit the airport. To list all his overseas experience would take up most of this page. Just a short sample includes England, Scotland, Norway, Denmark, and eight years in Yemen. Then there was Iran, Iraq, Kuwait, the United Arab Emirates, and Indonesia. “I won’t work in Saudi [Arabia],â€? he noted, not appreciating the politics of the place. “I’ve spent time in 64 countries,â€? Cameron said. To put that in perspective, that’s roughly one-third of the United Nations. “I didn’t enjoy sitting in an airport with armed guards and a military escort when working, but hell, we had that in Quebec!â€? he said. Over all this time Cameron has been married to the same lady, Darlene. They got married 53 years ago. That’s a rarity in an occupation where divorce is extremely common. “I was only home about 15 years of that,â€? he said. “You have to have a special woman to be a pipeliner. She raised four kids by herself.â€? “She stayed home with the kids,â€? he said. Home is now Kelowna, B.C., but they spent many years in the Lower Mainland.

There were plenty of axle's under this load as it pulled onto highway 39 west of Estevan. Photo by Brian Zinchuk.

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b o J p o T David Greyeyes Job: Pipeline excavator operator Training/Education: Operating Engineers Training Institute of Saskatchewan Prior experience: A decade of working in sewer and water projects. Prior to working as an excavator operator, David Greyeyes was a native special constable with the RCMP for seven years. Advice on getting into this line of work: “There’s always lots of work. If you don’t mind being away from home, it’s not a bad career.�

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&25 &HUWLĂ€HG David Greyeyes has progressed from being a student over a decade ago to now running one of the more challenging pieces of equipment on a pipeline. Photo by Brian Zinchuk

Excavator operator Redvers – The last time Pipeline News encountered David Greyeyes, he was instructing students in a 2009 on how to operate excavators on a large pipeline during training program that year. These days the excavator operator from Muskeg Lake is still running hoe, but he’s not digging ditch. Instead, Greyeyes is loading pipe trucks at the pipe yard just east of Redvers. This type of work used to be done by cranes or sidebooms, but an interesting piece of technology has allowed an excavator to step in. Instead of a bucket, a large vacuum called a vac-lift is attached to the end of the excavator’s arm. Through a single hole, it can generate enough suction to pick up a 16-inch diameter joint of pipe. The operator can then manipulate the pipe onto the stringing truck without the need of tag lines to control the ends of the pipe. “It’s a lot easier than digging ditch,â€? Greyeyes said. “You get a lot of control with it, and you don’t need guys hanging on the end with a rope.â€? Greyeyes has been pipelining for the last ďŹ ve years. “I do a little contracting on my own back home, too,â€? he said. That includes doing some sewer and water work.

“I did a bunch of water and sewer at Muskeg Lake on my own last year. I’m going to do more after this job,â€? he said. For this work, he typically rents a machine. Greyeyes spent many years working with North Battleford-based Unicon Pipeline, doing sewer and water work in many northern communities. Most of his work these days is around Regina. He spent a year running an excavator at the Regina reďŹ nery complex. This is his second year running a vac-lift. The 2009 program for which he was an instructor was borne out of the Enbridge Alberta Clipper project. It was done in partnership with Local 870 of the International Union of Operating Engineers, with the intention of training First Nations people how to run heavy equipment on biginch pipelines. One of his students, Nina Stonechild, who was proďŹ led in Pipeline News at the time, now runs a crane and is in regular contact. Another student was running an excavator on cleanup in the fall of 2009, while yet another ran a dozer. A decade earlier, Greyeyes, himself, was a student of a similar training program oered by IUOE. In the time since, the student became the instructor.

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PIPELINE NEWS October 2012

Enbridge project can now call on STARS if needed

Cindy Timinsky is Enbridge’s safety inspector for the Bakken expansion project.

Redvers – When Enbridge built its Alberta Clipper pipeline in 2008-2009, the contractors had to skip over part of their usual safety brieďŹ ng – how to set up a helicopter air ambulance landing site. At the time, there was no helicopter air ambulance working in the province. That’s changed now, with the advent of STARS helicopter air ambulance serving southern Saskatchewan as of this past spring. It also provides some reassurance, given that just as the major pipeline project was hitting its stride, one of the nearest hospitals, in Arcola, had to shut down its emergency room due to a lack of medical sta. There are three mobile treatment centres (MTC) on the job, each with emergency medical technicians, according to Cindy Timinisky, safety inspector for Enbridge. “The response time needs to be within 20 minutes,â€? she said. The MTCs follow the crews and keep an eye on high risk locations, such as the main welding gang. It’s important to have sta who know where to go. “The medics have to be comfortable with shoeies and access roads,â€? she said. A shoey is a pipeline term for a road that leads to the pipeline right-ofway. Shoeies are typically numbered sequentially from the start of the project (the “kicko â€?) to the end. Municipal ambulance sta may not be as intimately familiar with the right-of-way as those EMTs working on the project. As a result, the on-site EMTs will often transport injured workers o the line and intercept an incoming municipal ambulance. ɸ Page B15

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James SteÄŤenhagen conducts an orientaĆ&#x;on with new hires for Surerus Pipeline Inc. MTC.

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A mobile treatment centre could be found alongside the Enbridge right-of-way near Alida.

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Éş Page B14 The addition of STARS to the mix allows for another option. Enbridge has registered landing sites to correspond with shoeies along the right-of-way. This allows STARS pilot to y directly to the pre-registered site if needed. It’s the ďŹ rst major pipeline project in Saskatchewan that has had the capability of calling in STARS, if need be. While the site registration program, and its corresponding medical advice assistance, has been around for a long time, this is the ďŹ rst time a helicopter can be called in this region. Other safety points This project has seen the implementation of a new mandatory glove policy for ďŹ eld work. Enbridge also has a no-cellphone policy while driving. Not even speakerphones are allowed. There are approximately 450 crossings, including roads, power lines, underground cables and hotlines. All underground crossings are hydrovac to “daylight them,â€? e.g. allowing them to be visible to workers. Due to very dry conditions, they’ve had to be cognizant of ďŹ re hazards, with Timinisky noting even a truck’s exhaust can start a ďŹ re. A typical safety orientation takes about three-and-a-half hours, according to James Steenhagen, who’s the lead for safety for Surerus on this project. “My orientations are all about history. Reading from a book is boring,â€? he said. While there’s a saying that goes, “keep it under your hat,â€? Surerus takes this literally. They require all employees to have a medical information in a plastic pouch stuck inside their hard hats. That way ďŹ rst responders have a medical history at hand immediately should a medical emergency come up. Steenhagen said the policy came from an incident six years ago. Surerus was working on a pipeline parallel to another contractor. An 18-year-old working with that other contractor died on the job. The ďŹ rst person called was Surerus, because even though they weren’t the contractor this man was working for, their signage was the most visible. After that, the superintendent wanted identiďŹ cation on everyone.

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PIPELINE NEWS October 2012

PIPELINE NEWS October 2012

B17

Western Star opens Redvers location in time for pipeline

The new Western Star Inn & Suites in Redvers is the second of four similar hotels being built in southeast Saskatchewan.

Redvers – The second of a series of four hotels under construction in southeast Saskatchewan opened just days before the start of construction of Enbridge’s Bakken expansion pipeline project, with hundreds of workers coming to Redvers to work for several months. The Western Star Inn and Suites is located on the northeast corner of Redvers, in a new development that also houses a new John Deere dealership and PTI’s Redvers Lodge. It was preceded by Carlyle’s Western Star earlier this year. Esterhazy is expected to open in October or early November, and Stoughton is slated for next spring. The three hotels, excluding Esterhazy, will form a string along Highway 13 in one of the key areas of development for the Bakken. The hotel has 64 rooms. That’s down one room from Carlyle, as they have converted one room on the main oor into a commercial kitchen. The idea is to oer clientele meal services akin to a camp, with three meals a day at an added cost to the regular room rate. It’s not a restaurant open to the public, however. The service is for guests only. It will follow a weekly meal plan and be more of a smorgasbord in nature. As for the guest rooms, there are 23 double queens with full kitchen, 12 kings with full kitchens, four Jacuzzi rooms, four barrier-free rooms, and 21 double queen standard rooms without cooking facilities. “Kitchen rooms ďŹ ll ďŹ rst,â€? explained Carla Eagan, general manager of the

Redvers location. However, there are still request for standard rooms due to the lower rate. The hotel opened July 19, and a grand opening was held the following week. “It was a huge success. We had a barbecue. We brought in a chef to prepare dining,â€? Eagan said. Just under $800 was raised for a playground in town. The reception from the community was great, she added, with approximately 75 people attending. “The local people have been excellent. The town has been exceptional. The response has been amazing.â€? Business was slower in July, but got busy in August. “Now in September, we’re ďŹ lling up,â€? she said on Sept. 14. “As the weather gets colder, we’ll see more people in trailers looking for rooms.â€? While there’s a major pipeline project in town with hundreds of workers, much of their business has actually be coming from other clientele, such as frac crews and tradespeople working on a new development in town. Weekends see wedding clientele. “The pipeline was only responsible for a steady 15 to 20 rooms,â€? she said. The new hotel employs 10 to 12 people. There was better local response this time around, Eagan noted.

In addiĆ&#x;on to having a breakfast area, the new Western Star Inn & Suites in Redvers will have a commercial kitchen to provide three meals a day to guests who sign on for that opĆ&#x;on.

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PIPELINE NEWS October 2012

Tyler Bradley

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Job: Investment Manager Education/Training: Bachelor of commerce from the University of Saskatchewan, chartered Ă€nancial analyst candidate, technology commercialization post-secondary graduate internship Prior Experience as an Investment Manager: Before working for WestCap Mgt Ltd., Bradley worked in a corporate Ă€nance roll with companies that were involved in the agricultural sector Advice on getting into this line of work: “I think it’s important to keep an interdisciplinary approach in terms of your education. It’s helpful to stay broad and if you can draw on multiple disciplines from geology and engineering to Ă€nance it really makes for a powerful combination.â€?

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„ By Josh Schaefer Freelance Reporter Saskatoon – The thrill of the deal is what keeps Tyler Bradley of Westcap Mgt Ltd. excited about his job from day to day. Bradley is an investment manager for Saskatoon-based Westcap overseeing a $60-million oil and gas portfolio, a majority of which represents the Saskatchewan oilpatch. Westcap is a private equity fund manager with $500 million in assets under management, that invests in small and medium-sized companies across a range of industry sectors from health care and agriculture to manufacturing and energy. ɸ Page B19

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B19

For the thrill of the deal Éş Page B18 As an investment manager, Bradley is “constantly meeting new people with fascinating business ideas and working with them to realize their vision. “We invest in both service companies and exploration and production companies,â€? Bradley explained, noting they typically invest in the range of $1-million up to $20-million per company. “In the oil and gas sector, we focus mostly at the start-up stage. We’ll typically invest with companies that are raising anywhere from $10-to $50-million initially and work with them to grow that company into a $100- to $200-million enterprise over a three to ďŹ ve year period and ultimately sell it.â€? Bradley spends a large part of his time researching emerging oil plays in Saskatchewan and Manitoba by watching the land sale and drilling activity, as well as staying in touch with his networks in the oilpatch.

“We work closely with our current or prospective investee companies that are seeking capital,â€? Bradley said, “and we spend the time to understand the economics of their projects.â€? A company will usually seek Bradley with a business plan which he reviews. Once he scrutinizes the plan in detail to assess the risk, it is benchmarked against the market to determine if it is a viable deal. “There is a lot of legal documentation and ďŹ nancial reporting that comes with all of that, so you need to be a details-oriented person.â€? Upon graduating from the University of Saskatchewan with a bachelors of commerce, Bradley was involved in a post-graduate internship at Golden Opportunities Fund where he was introduced to the private equity business. Since then, he has kept corporate ďŹ nance his main line of work for more than 10 years. His primary focus for the last ďŹ ve years has

been the Saskatchewan and Manitoba oilpatch, but he continues to be involved part-time in the healthcare, agriculture and manufacturing sectors. Although Bradley now builds ďŹ nancial models in his downtown Saskatoon oďŹƒce, he does have some handson experience in the oilpatch. While attending university, Bradley worked for an oilďŹ eld construction company in Gull Lake, Sask., stringing and bucking pipe for new pipelines. “I’ve always had a lot of interest in this space and have built up a knowledge base in this sector over the past ďŹ ve years,â€? said Bradley. Westcap understands that the oilpatch is cyclical and adjusts their investment portfolio weighting in the energy sector and the types of deals that they are doing based on the

market. “You need to understand the geological and engineering side of the business,â€? explained Bradley, adding that they rely on third-party consultants to help assess the risk on speciďŹ c deals that they are working on.

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PIPELINE NEWS October 2012

BNSF expands Bakken oil transport Forth Worth, Texas – At the Williston Basin Petroleum Conference in Bismarck, North Dakota in May, IHS-CERA analyst David Hobbs projected that the Bakken play as a whole would reach one million barrels of oil production per day by 2020. It was a reinforcement of a prediction he had made at

the conference held two years prior. It seems that number has strong support, because the railway that runs through much of the North Dakota and Montana Bakken play announced Sept. 4 that it now has the capacity to ship exactly that much oil by rail.

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Fort Worth-based BNSF Railway (BNSF) stated that it has increased capacity in 2012 to enable the railroad to haul one million barrels per day out of the Williston Basin in North Dakota and Montana. This increased capacity will allow the energy industry to continue the record expansion of oil production in the Williston Basin and to ship the new production to markets throughout the U.S., the company said. That one million barrels per day capacity is enough to handle every drop of oil expected to be produced in North Dakota in the coming years. It’s also enough to preclude the use of any oil pipelines, despite the fact that Enbridge has been actively expanding its pipeline network in the region and TransCanada’s proposed Keystone XL pipeline is supposed to have a “Bakken on-ramp.â€? Canadian PaciďŹ c Railway also has crude-by-rail shipping capacity in the North Dakota Bakken. The BNSF expansion will also beneďŹ t shippers of other commodities, including agricultural products, according to the company. “Historically, oil and gas producers have used pipelines to transport crude from production to reďŹ neries and ultimately on to end users,â€? said John Lanigan, BNSF executive vice-president and chief marketing oďŹƒcer in a release. “Because this shale development growth came about so quickly, there has been a shortage of pipeline capacity to deliver production from new unconventional sources to coastal reďŹ ners. BNSF has responded quickly to enable producers to move crude to the most attractive markets and secure the best prices.â€? ɸ Page B21

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PIPELINE NEWS October 2012

B21

capacity to one million bpd Éş Page B20 Today, through direct and interline service, BNSF’s network reaches all major coastal and inland markets, and it directly serves 30 per cent of U.S. reďŹ neries in 14 states. BNSF currently has 1,000 miles of rail line in the Williston Basin area and serves eight originating terminals with two more scheduled to be completed by the end of 2012. BNSF connects to 16 of the top 19 oil producing counties in Central and Western North Dakota, and ďŹ ve of the six oil producing counties in Eastern Montana. “BNSF has been hauling Bakken crude out of the Williston Basin area for over ďŹ ve years. In that time,

we have seen the volume increase nearly 7,000 per cent, from 1.3 million barrels in 2008 to 88.9 million in 2012,â€? said Dave Garin, BNSF group vice-president, Industrial Products. “We see this trend continuing and we are committed to serving this growing market now and in the future.â€? BNSF has been able to achieve this increase in capacity due to increased investment, maintenance and hiring eorts. BNSF is investing $197 million in 2012 on projects in North Dakota and Montana. Some of those projects include 2,188 miles of track surfacing, two new inspection tracks, raising track at Devil’s Lake, replacement of

121 miles of rail and about 332,000 rail ties, as well as signal upgrades and equipment acquisitions. Since 2011, BNSF has hired more than 560 new employees to ďŹ ll existing and newly created positions in North Dakota and Montana. These employees include crews to help deliver the inbound freight that supports drilling eorts and the outbound crude to destination markets throughout the U.S. In addition to hiring new employees in the ďŹ eld, BNSF has also formed a dedicated unit energy desk that works directly with customers to

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WestFire applies modiĂ€ed hot frac with success WestFire Energy Ltd.’s average production soared in the second quarter, as did its net income over the threemonth period year-overyear. The company’s output during the period climbed to 11,549 boepd from 3,308 boepd during the same period last year. Net income during the quarter rose sharply to $17.51 million from $4.39 million in the prior year’s quarter. During the second quarter, the company drilled 25 (21.6 net) Viking horizontal oil wells: 15 (12.6 net) at Redwater, eight (eight net) at Plato and two (one net) at Lucky Hills. Year-to-date, WestďŹ re has drilled 82 (72.9 net) Viking horizontal oil wells: 47 (43.4 net) at Redwater, 24 (24 net) at Plato and 11 (5.5 net) at Lucky Hills. Drilling during June and July was minimal as required annual maintenance and recertiďŹ cation of drilling rigs was being performed. This pause allowed the company to ďŹ ne-tune its capital program with plans of

restarting drilling activities in August. Current production exceeds 11,000 boepd. In August, Guide Exploration Ltd. and WestFire jointly announced the acquisition of WestFire by Guide in an all share merger transaction to become an intermediate oil and gas company renamed Long Run Exploration Ltd. (DOB Aug. 9, 2012). The application of WestFire’s internally developed modiďŹ ed hot frac (MHF) technique in its operated areas of Redwater and Plato has generated marked improvements in production rates for the ďŹ rst half of 2012. The company has identiďŹ ed opportunities to use the MHF technique to work over a select group of older marginal producing wells in the Redwater area. Five wells that have been refractured to date have shown an average initial 30-day production increase of 50 boepd per well to 75 boepd. WestFire expects to use this workover technique on other underperforming wells

in its producing areas. The company also expects to apply the MHF completion technique on its extensive drilling inventory at Dodsland, Saskatchewan, and Provost, Alberta, once the development activities are extended to these areas. WestFire presently holds 244 undeveloped net sections of land on the Viking play containing in excess of 1,000 net risked (3,800 unrisked) prospective horizontal development locations representing an estimated eight year (risked) drilling inventory at the company’s current rate of activity.

help co-ordinate and plan unit train movements to and from the Williston Basin. With an expanded team, the Unit Energy Desk provides customers a single-source point of contact for their rail operations planning needs. BNSF has also employed numerous eďŹƒciency enhancements to increase capacity on routes into and out of the Williston Basin. These include working with customers to increase train sizes from 100 to 104 tank cars and in some cases up to 118 tank cars, adding signalization and sidings along key routes, and identifying and developing the most eďŹƒcient routes.

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B22

PIPELINE NEWS October 2012

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Tyler heavy crude was tried as one method of controlling dust on roads. Francis Schwindt spoke about dust control methods being experimented with in North Dakota.

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Bismarck, N.D. – Dust control has been an issue for roads since the time of the Romans. With such a tremendous increase in trafďŹ c on its roads, North Dakota is now tackling the issue. Francis Schwindt works with the North Dakota Oil and Gas Research Council. He spoke at the Williston Basin Petroleum Conference in Bismarck last May. The problem is the volume of traďŹƒc on unpaved roads, he said, noting some roads near Killdeer, N.D. have 400 to 500 semi loads a day. “Before, it was a school bus. A busy day was going to church on Sunday,â€? Schwindt said. The dust impacts vegetation and people’s safety due to visibility.

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Mackenzie County has a $1.3 million budget for dust control alone. As such, the research council is looking for solutions. Some of the parameters include it must be easy to apply and maintain, last a year, and be cost-eective, preferably inexpensive. “This is a wish list,â€? he said. “It has to be safe for the traďŹƒc and environment.â€? Existing methods include using water, magnesium chloride or calcium chloride. They are also looking at soil stabilizers, synthetic polymers, enzymes, petroleum emulsions, lignin sulfonate, oilďŹ eld brine, crude oil and aggregate modiďŹ cation. Bio-based oils such as those made from soybeans resulted in cows trying to eat it. They are reviewing the dierent technologies and have applied nine dierent products in half-mile test segments. Some products weren’t used, like the aforementioned tastyfor-cows soybean oil, or they were very expensive or diďŹƒcult to use. As for crude oil, of which there is a lot in North Dakota these days, they tried mixing

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it with aggregates and clays. They tried light Bakken crude, medium Red River crude and heavy Tyler crude. The Tyler was so heavy, Schwindt said, “We had to set it in a water bath to warm it up. They found using one to two per cent crude by weight in a gravel aggregate controlled dust. But at 40 barrels per mile, and at $100 per barrel, that equates to $4,000 per mile for dust control. On the other hand, magnesium chloride was about $8,000 per mile. Another method, using three to four per cent scoria, by weight, was needed. Scoria is a a baked clay. As for Bakken crude, they found it has too many volatile fractions, and its scale weight decreased as it evaporated. They needed to test the ditches to see if there was signiďŹ cant runo of the oil. “Good gravel is scarce and we better take care of it,â€? Schwindt said. “Magnesium chloride is the chemical of choice. Scoria should only be used on low traďŹƒc volume roads such as well-pad sites,â€? he concluded.

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PIPELINE NEWS October 2012

B23

Western Plains ponders future Calgary – Western Plains Petroleum Ltd. has a good news-bad news story to tell with the release of its second quarter and six month ďŹ nancial and operational results of 2012. The mixed outcome reported on Aug. 23 is due to the fact that the Lloydminster-based heavy oil producer increased its ďŹ nancial losses in the quarter despite boosting oil production and revenue. The company reported a loss of $452,973 for the three month period ending June 30, 2012 compared to a loss of $199,871 in the same period of 2011. The increased loss was due in part to a $95,779 increase in Crown royalties to $243,377 in the second quarter from $147,598 in the 2011 period, triggered by higher volumes and prices. Revenue for the second quarter of 2012 increased to $915,504 from $786,793 for the second quarter of 2011 due primarily to increased volume. The company could have earned more money in the quarter had it not been for a decline in the average heavy oil price of $60.20 compared to average oil prices of $71.79 in the second quarter of 2011. The company averaged 167 barrels oil per day compared to an average of 120 bpd per day for the second quarter of 2011. Western Plains produced an average of 148 bpd in the ďŹ rst six months

on 2012 compared to 121 bpd over the ďŹ rst half of 2011. The increase in production came from new wells drilled in mid-2011 and one (0.5 net) well drilled in the Landrose area of Saskatchewan in the ďŹ rst quarter of 2012. Production gains also resulted from the reactivation of wells that were shutin for repairs or workovers in the ďŹ rst quarter of the year. The repair costs completed in the period from March to May 2012 increased production costs leading to the average of $39.97 per barrel for the ďŹ rst quarter of 2012 and $36.65 per bbl. for the second quarter. Higher propane and other winter operating costs also contributed to the higher average in the ďŹ rst quarter. In other ďŹ nancial news, the company’s credit facility agreement with a Canadian chartered bank consisted of a revolving operating facility limit of $2.2 million with interest at bank prime plus 1.5 per cent at June 30, 2012. The company also had a development facility limit of $300,000 with interest at bank prime plus two per cent. Western Plains had drawn $1.63 million on the revolving operating facility at June 30, 2012. Western Plains found itself in breach of the working capital covenant prescribed in the loan agreement with the bank at the end both quarters of 2012. The covenant requires that Western

Plains maintain a working capital ratio of 1:1, but the actual working capital ratio was 0.85:1 on June 30, 2012. Since May, the company has minimized it capital expenditures, restricted repairs and improvements and sold some undeveloped land for $280, 000 to reduce debt and restore its working capital ratio. The company notes they have insuďŹƒcient cash inow to meet obligations as they become due. Further operating cost savings are likely to accrue with the expected activation of a new water disposal well

in the Maidstone area in September for the company’s wells in the area. Western Plains announced in February 2012 that its board of directors had appointed a special committee of independent board members with a mandate to undertake a process to evaluate the various strategic alternatives available to Western Plains with the goal of maximizing shareholder value. These alternatives may include, but are not limited to, the spin out of certain properties of Western Plains or other business combinations.

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PIPELINE NEWS October 2012

CES books higher revenue despite long spring breakup (Daily Oil Bulletin) – Despite a long, wet spring breakup in Western Canada, Canadian Energy Services & Technology Corp. (CES) posted higher revenue and positive earnings in the second quarter and ďŹ rst half. At the same time, earnings in both 2012 reporting periods slipped from comparable 2011 ďŹ gures, something management attributed to higher taxes and an increase in non-cash depreciation, amortization and stock-based compensation during the period. Revenue during the quarter rose 20 per cent, to $104.13 million from $86.97 million in last year’s second quarter, helped by stronger sales of drilling uids and related products and services, the company said. Apart from PureChem Services based in Carlyle, its core business of drilling uids and related products, CES has environmental and transport divisions. The company operates in Western Canada and in various basins in the United States, with a focus on servicing major resource plays. In Western Canada, revenue from drilling uids-related sales in the second quarter rose 13 per cent to $25.6 million from $22.6 million in last year’s period. Average revenue per operating day for the quarter rose one per cent, rising 23 per cent in the year-to-date. In the last several years, revenue per operating day has trended upward as

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operators drill more complex, deeper, and longer horizontal wells in Western Canada, management said in its second-quarter report. They added that wells require more uids, but also more technically-advanced uids in order to be successfully drilled and cased. In the U.S., the company’s revenue from drilling uids and related sales in the second quarter rose 21 per cent to $72.7 million from $60.1 million in last year’s period. Daily average revenue per operating day in the U.S. rose six per cent from ďŹ gures booked in last year’s quarter. In the year-to-date, the rise in daily average revenue per operating day was 17 per cent. The company’s transport division, EQUAL Transport, generated revenue in the second quarter, gross of intercompany eliminations, of $3.5 million, up 42 per cent from the $2.5 million booked in last year’s quarter. The year-overyear increase was due mainly to increased industry activity, management said. CES’s environmental division, Clear Environmental Solutions, generated $2.5 million in revenue in the second quarter, up $500,000 from the $2 million reported in the 2011 period. CES also operates a U.S. subsidiary, AES Drilling Fluids, LLC. In releasing its second-quarter report, CES announced it had declared a cash dividend of ďŹ ve cents per common share to shareholders of record Aug. 31, 2012. CES expects to pay this dividend on or about Sept. 14. In the three months ended June 30, 2012, the company’s earnings fell to $3.37 million or six cents per share from $5.51 million or 10 cents per share in last year’s quarter, representing a 39 per cent drop. Funds ow from operations in the quarter slipped to $8.73 million or 15 cents per share from $9.88 million or 18 cents a share in the earlier period. Capital spending in the quarter rose to $5.16 million from $2.92 million in last year’s period. In the six months ended June 30, 2012, earnings slipped to $17.07 million or 30 cents per share from $17.32 million or 31 cents per share in last year’s ďŹ rst half. Year-to-date funds from operations fell to $26.56 million or 46 cents per share from $28.64 million or 51 cents a share, while capital spending in the half rose to $12.29 million from $8.47 million. Meanwhile, revenue in the half rose to $260.69 million from $198.51 million.

PIPELINE NEWS October 2012

B25

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WCSS rehearsal „ By Geo Lee Wainwright – The Western Canadian Spill Services Oil Spill Co-op program can add a supply of human sponges to its cache of initial response resources in Area VR1. Those sponges are the minds of 140 employees of member licensees who soaked up the fall VR1 co-op spill training exercise at Riverdale Park north of Wainwright on Highway 41 on Sept. 5. The event was headed by Area VR1volunteer chair Dean Deck, with lead WCSS contract instructor Trever Miller and equipment manager Doug Gibson also on hand to demonstrate the containment equipment. ɸ Page B26

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B26

PIPELINE NEWS October 2012

Annual training is mandatory

Volunteers liĹŒ a Pedco skimmer into posiĆ&#x;on to aĆŠach to booms and a diesel pump. Pedco skimmers are designed to recover surface hydrocarbon in a creek or river with current. Photo by GeoÄŤ Lee

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Éş Page B25 A group deployment exercise in the Battle River followed the introductory remarks and equipment demonstrations. “The purpose of the event is a training exercise for the area membership in oilďŹ eld spill containment and recovery,â€? said Deck, who is compliance co-ordinator for Talisman Energy. “The lessons to be learned will be the deployment of the equipment and how it works, putting a river boom into the creek and setting up the pumps and skimmers to recover the uid that’s lost.â€? Annual training is a mandatory requirement of all licensees in the 18 WCSS spill co-ops including companies in Area VR1 covering an area from Wainwright to Cold Lake in Alberta and just east of North Battleford in Saskatchewan. Regulators from both provinces were on hand to orient trainees to their respective spills documentation and regulations and the need for licensees in both provinces to report spills larger than two cubic metres on a lease and any spill o lease. Among those soaking up the content was Mike Mills, a ďŹ eld operator for Imperial Oil in Cold Lake who attended the WCSS winter oil spill coop training exercise in Bonnyville in 2011. “Working with Imperial Oil gives you the opportunity to work with other groups and learn to deal with situations where there could be a spill on water,â€? he said. “I hope to take some experience back and share it with my group back in Cold Lake. These are important exercises. We care a lot about the environment and the people around it. “It’s important to go through exercises like this to keep up the safety for everyone and our environment.â€? Rob Sawyer, an operator for Black Shire Energy Inc. working near Ribstone northwest of Provost, was also stoked to be at the training exercise. “We’ve had some other guys go, and it’s my turn to come and participate again,â€? he said. “These are important. You never know where the service will be needed in case of a spill. It’s a good refresher as well, and I hope to learn some new techniques that are out there.â€? ɸ Page B27

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PIPELINE NEWS October 2012 Éş Page B26 Member companies like Black Shire have access to more than $10 million of spill recovery equipment including area caches at the Husky Pipeline Yard in Lloydminster and from the Cenovus parking lot yard at La Corey near Bonnyville. “Basically, we are going to be utilizing some of the equipment that the WCSS has in cache in and around the provinces,â€? explained Miller at the start of the day. Miller works with SWAT Consulting Inc. in Alberta, providing spill response services to industry in Canada and, along with Gibson and administrator Audrey Campbell, was contracted by WCSS to provide with spill response services in Area VR1. “WCSS was developed by industry for industry. So today, it’s basically going through the spill response equipment that they have access to,â€? Miller added. Each year, WCSS trains approximately 1,500 potential responders representing licensees of wells and pipelines in Alberta, northeastern British Columbia and Area VR 1 in Saskatchewan. “In this training exercise, we are going to be going through some dierent types of anchor sets, whether its trolley line anchor sets, in-stream anchor sets, shore to shore anchor sets, and basically run out a full boom deployment on a small river system,â€? said Miller. “This is an exercise for everyone to keep their skills up, and for everyone to get the chance to get some hands-on with the equipment, and get some theory behind it. “It’s a basic refresher hopefully for the majority of them. “It’s to give them some theory, so we run through the dryland – we walk through basically every piece so they understand the terminology with each piece of equipment. “It gives them an understanding of how it’s pieced together – where it can fail and where it succeeds in the best applications – running through dierent types of scenarios,â€? he said. Gibson and Miller steered the bulk of equipment demos ranging from how to use a variety of shallow water, inatable and conventional booms and all types of anchor sets, to technical attachments such as a snatch block and a hand line bridle. The duo also led talks and demonstrations on the use of a weir-style Pedco skimmer to recover surface hydrocarbons and a Turner Valley gate designed to deect oil to a recovery area. The available instruction gear included a diesel pump and a rubber raft powered by an electric motor. Some of the equipment was brought to the site from Lloydminster by Joe Reid, assistant Alberta production co-ordinator with Devon. The fall training exercise was centred around an incident command system (ICS) base trailer in the staging area. “Today, we will have about six dierent exercises. Hopefully, with the volume of people here, we will give everyone the chance for some hands on,â€? explained Miller. “We do the dryland, go through the theory and bust out into the incident command structure and walk through it as if it were an event, and get the individuals to complete the installation.â€? The ICS centre posted a strategy map and a set of training objectives such as the establishment of a trolley line across the river, the set up of primary containment booms, a recovery

B27

system, secondary containment and a straw boom. WCSS manuals include the key control points along the river, which Miller explained, is a point on the river where it’s going to force all of the oil into which helps determine the incident strategy. “You put up your boom to further direct it to an area of recovery,â€? he said. “The critical control points are areas such as where we are at now, where we know we have good access, and we know we have good staging. “Within a river system such as this Battle River, you could have about 30 control points. “What you want to ensure is to know where those critical control points are. You will open your manuals up and ďŹ nd where that control point is. “They will tell you where your next downstream point is and how far downstream, and you start to mobilize your resources further downstream as required.â€?

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B28

PIPELINE NEWS October 2012

The fountain of youth Vermilion – The grass has never been greener anywhere than it is in Vermilion for Bert Samuelson, the dean of the trades and technology at Lakeland College in Vermilion. Samuelson was born and raised near Vermilion where he and his wife Terry live and where they raised three daughters who are now grown-up. As a young man, Samuelson graduated from Lakeland as a journeyman heavy equipment technician and welder. He went to the Northern Institute of Technology in Edmonton for his ďŹ rst apprenticeship training in automotive services only because Lakeland didn’t have that training course in 1972 when he was student. “I took some of my training at NAIT and some of my training at Lakeland College. I am very proud of that,â€? he said. His mission as the dean of trades and technology is to help mentor young students to complete their apprenticeship training as he did at Lakeland.

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b o J p o T “It’s a great job. I’ve been at this for a number of years now at the college. I took the dean’s position at the college four or ďŹ ve years ago,â€? he said. “It’s pretty exciting. I get to meet lots of new faces. “The position has provided me the opportunity to contribute to the future of Alberta by mentoring and supporting our learners.â€? Students have their pick of eight apprenticeship training courses for trades including carpenter, electrician, heavy equipment technician, automotive service technician, instrumentation, steamďŹ tter/pipeďŹ tter and welder. The campus introduced a new parts technician online learning course this fall. The ďŹ rst year of apprenticeship training as a gasďŹ tter starts in the spring of 2013. The need for apprenticeship training is driven by the booming oil and gas economy in Western Canada, but Samuelson said it’s two-way street. “We have seen a growth in oil and gas, but also I think Lakeland College has contributed quite a bit to that as well. Our program succeeds. “Students are very successful and we are drawing students from other areas now. I think we are doing very well and I am very proud of what we have done in the past and what we are continuing to do.â€? ɸ Page B29

Bert Samuelson Job: Dean of trades Education/Training: Journeyman welder (1991), Hourneyman heavy duty mechanic (1993), Chair position (2000). Experience: Over 25 years at Lakeland and counting Quote: “One thing that I lived by while at Lakeland is remember, you are spending your father’s and your neighbour’s money, so look after it and earn.�

PIPELINE NEWS October 2012 Éş Page B28 Samuelson said his purpose as a dean is to ensure Lakeland provides all its students a quality education so they are able to to compete in a fast-paced economy. “We need to understand how our new generation learns, how they behave and what challenges they may face,â€? he said “At the college, we are committed to a high level of standards, safe environments, responsible learners and graduating prepared, self-suďŹƒcient, disciplined journeymen for our workforce.â€? The trades program at Lakeland that Samuelson oversees includes the popular pre-employment training in a variety of trades. Samuelson has worked at the campus for over 25 years as a department chair, an instructor and an employee at the campus service centre. He has taught dierent levels of heavy equipment and welding supported by several years of work experience in Vermilion in the automotive ďŹ eld. “It seems to be the natural progression. You work in industry for a number of years and you want to pass along a little knowledge and experience. The best way to do that is to get into the education ďŹ eld,â€? he said. “I am proud to have worked my way up the system, starting o as an apprentice, a journeyman, a mentor in education, and now as a leader. “So it’s very exciting and I am not sure where I am going next.â€? In the short term, Samuelson will get behind the wheel of a special trailer made to promote a new street rod technologies program being oered to

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students across Canada starting next fall. The eight month SRT program will train students for careers in repairing and rebuilding hot rods, muscle cars, roadsters and other modiďŹ ed vehicles. “It will be about custom and restoration. It seems to be a pretty big business,â€? said Samuelson. “There’s no one in Canada that we know of that teaches it in an institute.â€? The course will likely stoke Samuelson’s own passion and hobby tinkering with old trucks. “That’s the next step,â€? he joked. “When you get a little older, you have a little more disposable income and maybe it’s on a new car. “I am looking forward to it. It’s to do with auto body, performance – it’s a new technology. Welding and sheet metal fabrication will be taught, along with metal prep and prepping for paint. “There’s seems to be quite a bit of expendable funds out there so they are spending money on these vehicles – we just want to teach them how to do it correctly,â€? he said. “I can kind of understand where students are coming from. I spent a number of years in the ďŹ eld as an instructor and as a technician on the tools.

“That was my ďŹ rst trade – the automotive ďŹ eld – so it kind of sticks with you. I am a truck guy,â€? he said. “I still have a number of trucks that I play with. I do most of my own repairs and I have some older vehicles that I work on.â€?

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B30

PIPELINE NEWS October 2012

Oilsands plan to reduce leases Edmonton – The Alberta government has rolled out a long term land-use plan for economic development in the Fort McMurray area with an eye to environmental protection. The Lower Athabasca Regional Plan could see up to 19 oilsands leases being cancelled to accommodate conservation lands. LARP sets strong environmental limits, conserves sensitive lands, and offers numerous recreational opportunities in the Lower Athabasca region. The plans make no mention of how the province will compensate the leases reportedly valued around $29 million but affected companies have long known about the potential to have their leases cancelled. More than 10,000 Albertans, including individuals, Aboriginals, industry, municipalities, environmental organizations and other stakeholder groups, have been engaged in land-use planning including three years and three rounds of consultation on LARP. The plan went into effect on Sept. 1 and will also address infrastructure challenges and strategies to plan for urban growth around Fort McMurray. “Alberta has every advantage – abundant resources in a beautiful and diverse natural landscape – but in our busy province, we need to make smart

choices about the way we grow,” said Environment and Sustainable Resource Development Minister Diana McQueen. “Responsible and long-term planning in this dynamic region will mean vibrant and healthy communities for families to live, work and play. “Releasing this plan is a significant step as LARP recognizes the importance of the oilsands as an economic driver while assuring environmentally responsible development of the oil sands resource,” said Canadian Association of Petroleum Producers vice-president David Pryce. LARP is the first of seven regional plans committed to under Alberta’s innovative Land-use Framework that provides environmental management, addresses growth pressures and supports economic development. The plan commits to the development of tailings management, biodiversity, and surface water quantity frameworks and provides certainty for industry in development of the oilsands. LARP also supports diversification of the regional economy including tourism and, the potential for further responsible development of energy, minerals, coal, surface materials, forestry and agriculture.

“As Albertans, we are fortunate to have good job opportunities, live in vibrant communities and enjoy a clean and healthy environment,” said Melissa Blake, mayor of the Regional Municipality of Wood Buffalo. “I see this plan as a blueprint for dealing with present challenges and opportunities, as well as one that will ensure this important and sensitive region continues to thrive well into the future.” LARP is a major component of the province’s efforts to provide more openness and transparency to environmental oil sands data. This is being accomplished through the delivery of the Oil Sands Information Portal and improved engagement with Albertans on property rights issues for land impacted by industrial development. Alberta has also introduced the joint AlbertaCanada oilsands monitoring program. The province will soon announce plans for the governance of a province-wide environmental monitoring system and will move to implement a new single regulator that eliminates overlap and duplication of regulatory functions, while improving standards for environmental management, public safety and health, and resource conservation.

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B31

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

Leading g The Wayy

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

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B32

PIPELINE NEWS October 2012

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

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PIPELINE NEWS

SECTION C October 2012

Standing for the singing of the naƟonal anthem are head table guests (l-r) Mark Bacon, chair of the Lloydminster Society of Petroleum Engineers (SPE), Andrew Oracheski, Lloydminster OilĮeld Technical Society member; Mike McIntosh, outgoing SPE chair and oil show chair; Kevin Casper, vice president, producƟon, Devon Canada CorporaƟon; Ken Hughes, Alberta Energy Minister; Larry Doke, MLA Cutkife/Turtleford and Lloydminster Mayor Jeī Mulligan.

Banquet fetes heavy oil’s impact Story and photos by Geoff Lee Lloydminster – The overriding message from the Lloydminster Heavy Oil Show banquet is that heavy oil produced from the Lloydminster area will continue to play a more important role in fuelling the economy in Western Canada. That theme was backed by comments from Alberta Energy Minister Ken Hughes to Pipeline News prior to his welcome speech at the show banquet held at the Lloydminster Exhibition Grounds on Sept. 11. “Heavy oil from Lloydminster and area is actually a really important piece in the puzzle of the diverse offering of oil products that we can sell from Alberta and obviously from Saskatchewan as well,” said Hughes. “We see people being really creative in how they develop the resources here. This is a real centre of creativity and innovation in this corner of Alberta and Saskatchewan. “It’s a real important part of the oil industry in the province of Alberta in our eyes.” In a related issue, Hughes was pleased that Alberta contributed $10 million toward cost of a new Petroleum Centre at Lakeland College that held its sod turning ceremony earlier in the day. “I am really delighted that the Alberta government is able to participate in

that and continue to support these excellent programs at Lakeland,” he said. “I would say one of our biggest challenges in developing our resources throughout Alberta is having the workforce to be able to do that. “Growing the workforce here at home means that we’re more likely to have people stay here. We all know those programs are oversubscribed by at least four times already at Lakeland. “Being able to increase the number of people that can be trained there is a real important part of ensuring that we have the workforce that we need in Alberta for the long haul.” Hughes also believes that new thermal technology and research being introduced by companies in the Lloydminster area will generate opportunities that can be marketed to the world. “Every time the industry starts to evolve a new understanding of how to develop these resources, what it leads to is knowledge that can be deployed elsewhere in the world,” he said. “We see people coming here from other parts of the world. They want to see how we do it here. They have similar resources. “There are similar kinds of heavy oil elsewhere in the world, but we’re the ones who seem to be at the leading edge to actually develop it in a way that makes sense and is economic.” ɸ Page C2

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PIPELINE NEWS October 2012

Heavy oil is the mover and shaker

Alberta Energy Minister, Ken Hughes paid a surprise visit to the Lloydminster Heavy Oil Show banquet on Sept. 11. Hughes told Pipeline News that the heavy oil industry in Lloydminster conƟnues to grow and spread its reputaƟon for creaƟvity and innovaƟon.

ɺ Page C1 The heavy oil industry is the only engine for growth in the oil and gas industry in Alberta and Saskatchewan, according to Kevin Casper, vice-president production for Devon Canada Corporation based in Calgary. “There is still some conventional gas and conventional oil. The real mover and shaker in the oil and gas business is heavy oil,” said Casper, minutes before delivering his keynote speech on world supply and demand. Devon has heavy oil operations in Lloydminster and Bonnyville and in the Fort McMurray area. Casper agreed that thermal production is rapidly gaining ground over cold heavy oil production with sand or CHOPS in the Lloydminster area, but added CHOPS still has potential for growth. “There is still a lot of opportunity in conventional heavy oil. It’s a bit restricted in terms of land,” he said. “I still think there is huge opportunity in improving the recovery factor on CHOPS, but without a doubt, the thermal business is a freight train. It’s going to continue to be so for some time. “The thermal projects are like freight trains and they are going to keep on rolling,” he said. Lloydminster Mayor Jeff Mulligan told the audience he hopes the city can continue to ride along with the speed and growth of the heavy oil freight train. Without heavy oil he said, Lloydminster would just be a shadow of the fast growing municipality that it’s become in the past decade. “We wouldn’t have the prosperity, the friendships, families, and the contribution to our economy, the donations, the sponsorship, the leadership and the infrastructure,” he said to a packed audience. “You continue to fuel our economy here and the economic well-being of this country. This show puts Lloydminster on the map and on the world stage. “We want to thank, on behalf of city council, the organizers, the committee, all of you for attending and particularly the vendors who continue to demonstrate a level of innovation second to none in the world – and we can call Lloydminster the heavy oil capital of the world.”

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Kindersley seeks relief from growth pains Mayor Wayne Foster and new economic development manager Theresa Leinenweber are puƫng planning on the front burner to help Kindersley beƩer manage its rapid growth resulƟng from acƟve oil and gas and agriculture sectors and to provide more housing to meeƟng the demand for a labour.

By Geoff Lee Kindersley – Kindersley Mayor Wayne Foster is campaigning for re-election on a platform of managed growth and attainable housing for the upcoming Saskatchewan municipal election on Oct. 24. “The four years kind of scared me at first, but I think there’s still lots of things to do,” said Foster, who picked up his nomination papers on Aug. 28, the day Pipeline News came knocking. “It’s getting exciting. There’s lots of development coming. I’d like to be a part of that.” Strong economic growth in the oil and gas and agricultural sectors in the area is behind the drive for better long term planning. The need for attainable housing of all types is at the forefront. An asset management plan with an eye to scheduling and costing improvements is also in the works to help the town identify its overall infrastructure and servicing needs. “It’s time to know what you’ve got, what it is worth and how you are going to replace it,” said Foster. “That would be my platform. If you run the town like a business, you can keep the tax rate at a reasonable level and improve your community.” Thanks to a booming oil and gas industry, Kindersley is nearing city status with a population that has surpassed the 2011 census of 4,678 residents. “We seem to be quite full. The campgrounds are full, the hotels are full. The oil industry is just booming,” said Foster. “The impression that I am getting from the people that I know is, it’s probably going strong for at least another three years – a big boom for three to five anyway.” Foster said the agricultural industry is also experiencing an economic heyday in the region with four or five bumper crops in a row. “They are doing well and the weather’s been very co-operative the last number of years,” he said. To help fund continued growth, the town overhauled its building and development fee structure earlier this year and has generated more than $300,000 in revenue toward future infrastructure and development needs. ɸ Page C4

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PIPELINE NEWS October 2012

Housing task force ɺ Page C3 A housing needs survey is under way to help attract potential developers to build a variety of attainable housing to accommodate new oilfield workers and families. The survey is a follow-up to the 2010 Kindersley Housing Task Force finding that identified the demand for all segments of housing focused on available land in the Rosedale subdivision. “There are some projects coming up, but we haven’t signed the agreements yet. We do have some developers looking at the Rosedale area,” said Foster. Approximately 57 hectares are available for residential development in the Rosedale subdivision area. “We are offering them land and saying that it can really be flexible to a number of different housing styles, whether it be detached or single family or multi-unit dwellings,” added Wayne Gibson, communications co-ordinator. “It helps us to address the needs that actually satisfies a number of different demographics.” Representatives from Kindersley attended the HeadStart on a Home municipal showcase and developer forum in Saskatoon this summer to help jump-start new housing in their community. Quick action is needed as the town’s infill housing program is coming to an end in the downtown core and available lots are running out in the 22 lot expansion of Rosedale that was developed and serviced by Kindersley in 2010. “The developers that we have seen lately are interested in using some of the provincial programs like the HeadStart program,” said Theresa Leinenweber, the town’s new economic development manager. “It does help so they can get a little more profit out of the development.” Leinenweber said the demand for housing is largely driven by the oil and gas and agriculture industries and related industrial, commercial and retail developments. Up to 57 temporary workers can be accommodated in trailer dormitories at the Open Camp Lodge that opened its doors in January. “The oil industry attracts a lot of single young males and they don’t always have the wherewithal to stay in a fancy hotel,” said Foster. “The camp will fill a niche because there is just a shortage of rental properties.” ɸ Page C5

Mayor Wayne Foster stands by a for sale sign at a ready-to-move house in the Rosedale subdivision. The town is working with developers to build more aƩainable housing of all types in the area to accommodate new workers and families moving to the area.

PIPELINE NEWS October 2012

Kindersley opened its the new $12.2 million mulĆ&#x;-use arena facility in February aĹŒer the exisĆ&#x;ng rink burned in 2010. The town is looking for funding from the provincial government to ease the burden of a $3.4 million cost overrun aĹŒer receiving $8.8 million in insurance. The town is already fundraising for a $24 million Phase 2 expansion that will include a performing arts theatre and an indoor swimming pool.

Éş Page C4 As many as four new hotels are being built, including signiďŹ cant expansions underway at the Kindersley Inn and the Crossroads Motel near the intersections of Highways 7 and 21 that bring high traďŹƒc volumes to town. “Some of the hotels are doing a suite concept so it’s pretty attractive to the oilďŹ eld worker to have a kitchenette. It ďŹ lls a need for the temporary oil worker,â€? said Leinenweber. The boom in hotel construction is well timed after the opening of the $12.2 million multi-use arena facility this past February and the return of

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hockey tournaments. “It’s helping to revitalize the community and we are able to host as much or more than we did,â€? said Foster. The new arena replaces the Exhibition Stadium that burned in 2010 leaving taxpayers to foot a $3.4 million cost overrun after the insurance payout. The need for ďŹ nancial assistance prompted the town to write an open letter in April to Economy Minister Bill Boyd, the MLA for Kindersley, appealing for provincial funding to ease the tax burden of the facility. “We are still hopeful. We’ve had discussions with Mr. Boyd since then,â€? said Foster. “It’s already been to caucus and we haven’t heard anything more since then.â€? Phase 2 of the project calls for the construction of a $24-million performing arts theatre, an indoor swimming pool and a convention centre. Approximately $500,000 has been raised in a new fundraising campaign. Foster said the amenities are needed to attract new families and investments to the community and to replace the town’s aging pool and theatre facilities. “The economic spino that’s coming from being able to use an ice surface has certainly made everyone a little happier,â€? said Foster. “People are excited to see what’s going on in our community. There is lots of building, there’s lot of expansion and lots of talk.â€? In 2011, the town generated a record $24 million in revenue from 51 building permits and 2012 is shaping up to be a strong year as well. Construction is due to begin on the new 24 - hectare MacNash Industrial Park on the west end and work is underway on new 16-hectare Holland Park commercial business development fronting the north side of Highway 7. Home Hardware recently relocated and upsized to the Kindersley Mall in the space vacated by Zellers, and the local Co-op expanded their Home Centre & Building Materials store. Wal-Mart is the other major retail anchor in Kindersley that markets itself within the West Central Enterprise Region. Kindersley’s development proďŹ le includes a list of recent municipal infrastructure investments such as the $22 million Water West Regional Pipeline with a state-of-the-art water treatment plant. The town invested $935,000 in upgrading of facilities at the Kindersley Regional Airport and $430,000 to upgrade a lift station at the water treatment plant. Kindersley is also spending $3.2 million in road and waterline upgrades over the next three years, including $1.2 million in 2012.

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PIPELINE NEWS October 2012

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Oil spill threat drives WCSS training

Instructor Trever Miller, leĹŒ, primes this diesel powered pump that Doug Gibson starts aĹŒer a few quick pulls.

„ By Geo Lee Wainwright – Oil spills are an inevitable part of the oil and gas industry, but due diligence and continual training can limit the scope and number of incidents and protect the environment. That was the key message from Alberta and Saskatchewan regulators at the Western Canadian Spill Services Area VR1 oil spill co-op fall training exercise held at Riverdale Park north of Wainwright on Highway 41 on Sept 5. A total of 140 industry co-op trainees registered for an equipment deployment exercise on the Battle River and orientation messages from regulators that underscored the need for training. “It’s important to have these yearly exercises so everyone knows how to handle these sorts of incidents,â€? said Kristen Kohlman, a ďŹ eld inspector for Alberta’s Energy Conservation Resources Board (ERCB). “We’ve had a lot of them in the past few months here – some pretty high proďŹ le cases. “Using these training opportunities is really going to help them out handling these sorts of situations. We’ve had some major incidents throughout the province. These things are good exercises.â€? Kohlman handed out ERCB brochures on Release Reporting Requirements in Alberta. The reporting limit of spills greater than 2 cubic metres on leases and any spill o lease are now the same as Saskatchewan regulations. “There’s a few things that we’ve changed in our regulations to conform to be more comparable to Alberta,â€? said Terry Brisbourne, a senior project specialist from Saskatchewan’s Energy and Resources petroleum development branch n Lloydminster. “The industry kind of wants that. We used to have a reporting limit of 1.6 cubes. We’re up to two cubes now. There are deďŹ nitely dierences though. “They are dierence provinces and dierent rules and a dierent lay of the land. No doubt, everyone has to be aware of both regulations depending on where their industry is residing.â€? Area VR1 is one of largest WCSS oil spill co-ops in terms of area and membership, making reportable spills from leases in both provinces in the zone inevitable. ɸ Page C8

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PIPELINE NEWS October 2012

It's better to be prepared ɺ Page C7 Kohlman agrees with an introductory statement by WCSS contractor instructor Trever Miller that oil spills are the nature of the beast in the industry. “As much as you try to prevent them, they still seem to happen, so it’s better to be prepared than not having a clue how to handle them,” she said. Brisbourne told the group there were 140 reportable spills on the Saskatchewan side of Lloydminster in a 12 month period ending June 2012 – an improvement over past years thanks to training. “The 140 total is kind of a good number because we’ve seen numbers as high as 224 in other years. It seems like the industry is becoming more responsible,” he said. Of the 140 spills, 44 per cent of them were at well sites, 12 per cent at facilities and 13 per cent were due to line breaks with 31 per cent classified as miscellaneous – what Brisbourne said are spills usually related to truckers. “To see 31 per cent for truckers is a really good feature that we are seeing now because that number used to be about 50 per cent. It’s nice to see that number coming down,” he said. “We are doing something right. Truckers are

becoming more aware of how they are operating. “One hundred and forty is still a good number for a full 12 months. The material that’s being spilled is pretty much 50/50 oil and water, trace condensate and we have 59 cubes that are chemicals.” In his address, Brisbourne noted that Saskatchewan also requires the reporting of spills of refined products such as much as half a cubic metre. “The Ministry of Environment also has limits on refined chemicals and their numbers are different based on what you are spilling,” he said. In Alberta, any release of refined products such as diesel, gasoline, sulphur or solvents that “is causing or may cause” an adverse effect is reportable to Alberta Environment. A licensee must also be a member of an oil spill co-op or submit its own spill response plan for its special local operators to the ERCB for approval. Co-op members in good standing attending the Area VR1 training session fall also learned that some spills can take months or years to be fully cleared from the books. Brisbourne noted there were 54 spills in Lloydminster from previous years yet to be signed off.

“There are some that are long-term spills, probably not as long as in the past, but they are lingering a little bit, so we are still working on those and hope to put the closure on remediation,” he said. Reportable spills regulations in Alberta are covered by Oil and Gas Conservation Regulations Sections 8.050 and 8.051 and Pipeline Regulation Section 77 noted in the ERCB brochure. ɸ Page C9

Area VR1 chair Dean Deck, leŌ, listens to a presentaƟon on spills reporƟng documentaƟon and regulaƟons in Saskatchewan by Terry Brisbourne from the petroleum development branch of the Ministry of Energy and Resources in Lloydminster.

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PIPELINE NEWS October 2012

Rob Sawyer, leĹŒ, from Black Shire Energy and Bernie CaoueĆŠe from Husky Energy, register for the start of the WCSS Area VR1 fall oil spill co-op training exercise at Riverdale Park north of Wainwright on Highway 41. One hundred and forty co-op members came to the event on Sept. 5.

Éş Page C8 Brisbourne told the trainees representing licensed companies in Saskatchewan to bone up on their provincial Oil and Gas Conservation Regulations that were revised this year. Saskatchewan also has a new Spills and Incident Reporting Guideline GL 2011-01 that was released in June 2011. “It’s good to pull that guideline down as well,â€? he said. “There are ow charts that tell you step-by-step how to do reporting and what has to be reported.â€? The Area VR1 equipment deployment exercise took place during a day of intermittent rain showers which helped to drive home Brisbourne’s plea for members to check the integrity of their dikes this fall. “We have had huge amounts of rainfall this year and the past couple of years. We are seeing the

dikes of our leases getting busted open or washed away,â€? he said. “I know it’s a hard thing we have to stay on top of, but we do have to work on that quite a bit. “If you go to our website and pull down the S-01 guidelines for upstream storage standards, it talks about the tank requirements and containment and also about how to build our leases and contouring our leases. “There is also a section on fresh water pumpo procedures. With written land owner’s consent, you have to do certain chemical tests to determine if the water is fresh before you can pump it o. Do not bust open the dike. It must be pumped up and over,â€? stressed Brisbourne. “Especially with winter coming, we want to make sure our dikes are good so that when spring comes we don’t have a lot of runo that’s downhill.â€? The reminders set the scene for the day of equipment demonstrations and a deployment exercise in the Battle River. The lessons learned included the deployment of the equipment, setting up a boom into the river, and setting up the pumps and skimmers to recover the uid that would be lost in a real spill. “It’s commendable that everyone is showing due diligence and a responsible attitude toward a very serious issue with the potential of endangering

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our water bodies and rivers,â€? concluded Brisbourne. “On the Lloyd side, we do have a few pipeline crossings that cross rivers. We have bridges. Truckers can slide o and hit the river. There’s a potential. “We want to be able to be prepared for such disasters and make sure that doesn’t become a bigger problem than it really is initially. “So it’s commendable that everyone is here. We like to see participation and reecting that you guys are showing an interest and being able to sense a responsible attitude towards maintaining this industry and promoting the economy.â€?

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PIPELINE NEWS October 2012

OilĂ ow repeats its shake demo at oil show

Greg Johnson, ÄŽeld sales manager for OilŇow SoluĆ&#x;ons in Lloydminster, is excited about the strong response to the company’s line of ProŇux technology for mobilizing heavy oil during the 2012 Lloydminster Heavy Oil Show Sept. 12-13.

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„ By Geo Lee Lloydminster – Oilow Solutions Inc. uses the “seeing is believingâ€? approach to demonstrate the ability of its Proux technology to unlock heavy oil in wells, reservoirs and pipelines to trade show customers. The Calgary-based company brought some jars of heavy oil mixed with one of its water soluble polymers to the Lloydminster Heavy Oil Show for customers to shake and see how it mobilizes viscous oil into a free owing liquid. “We call it a ‘shaky shake’ demonstration. It’s basically just some heavy oil with a viscosity of about 70,000 to 80,000 centipoise mixed with a ratio of our product,â€? said Lloydminster ďŹ eld sales manager Greg Johnson. “You can shake it up and see how it mobilizes the oil and turns thick heavy oil into a very runny, coee-like substance. “It’s very eective in that you can shake it up, mobilize it and then leave it sit on the table in front of the customer for about 10 or 15 minutes and the product will re-separate.â€? The demonstration shows that the Proux product easily separates from the oil and that it can be recycled and reused in a variety of heavy oil applications where viscosity is an issue. The Proux ďŹ eld strength chemical works by forming dispersion with heavy oil that encapsulates heavy which is then easily separated with surface equipment. The Proux suite of commercial products includes Wellux for wellbores and Transux for use in owlines and gathering systems in non toxic, biodegradable and recyclable formulations. The company is also close to commercializing its Terraux chemical solutions for reservoir stimulation and enhanced oil recovery. “Anywhere there is a viscosity issue or a producer is having viscosity related problems, we have something that they should be consideringâ€? said Johnson. Wellux is the solution of choice for cold heavy oil production with sand or CHOPS wells with high viscosity issues in the Lloydminster and Bonnyville markets. The product is injected through the annulus of the well and creates a lowviscosity uid dispersion in the wellbore near the pump inlet. The bottom hole owing pressure is reduced as a result of a more controlled drawdown and reduced torque on the pump. “It’s eective for situations where you have a high torque and the pump is having a hard time turning in the heavy oil,â€? said Johnson. “If a producer has a high uid level and they can’t speed the pump up and they are running on a compensator, injecting this stu drops the torque and allows them to chase that uid level in the wellbore. ɸ Page C11

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Greg Johnson holds up a Jeƞlux product display for horizontal well cleanouts at the OilŇow SoluƟons booth at the Lloydminster Heavy Oil Show. Image submiƩed

ɺ Page C10 “You can definitely upsize your pump. For some of our clients, we’ve had some great success stories.” Case studies in the Lloydminster area show that Wellflux is an effective solution for reactivating previously uneconomic or high torque wells. “Over the last seven or eight months, we’ve made some great inroads,” said Johnson. “In this area, the product is starting to take off. It is a very competitive market. You can’t just jump in with both feet. You have to convince people that the product is effective and does what we say it will do.” The key to the company’s success is its research and development lab in Calgary staffed with PhD-level chemists, physicists and engineers who also support fluid screening tests conducted at field bases in Lloydminster and Peace River. “Typically, if a customer has a candidate well, we will take a fluid sample from the well and test for compatibility,” said Johnson. “It helps to put the customer at ease, and we will also be able to tell the effectiveness of the product on a client’s oil. “We don’t want to sell the product for the sake of selling the product. We want to make sure the customer has a success story.” Oilflow Solutions is expanding its Proflux technology into the Columbia and Venezuela markets in a product supply agreement signed with MI-SWACO, a Schlumberger company in June. “It’s a company that we are very excited about. There is a lot of heavy oil in that area as well. There will be Wellflux and Transflux and applications,” said Johnson. The company’s Proflux technology was named the runner-up production technology of 2011 by New Technology Magazine. Oiflow Solutions is also moving closer to the commercial release of Terraflux for enhanced oil recovery of heavy oil and bitumen. Terraflux is touted as being an effective alternative to waterfloods with chemical formulations that can be injected into porous formations to enhance oil recovery. “We are working with some major producers and are hoping to kick off some field trials in the next six months. That would be a very large application for us,” said Johnson. “We’ve done some core samples with some major producers. We want to have a little more research to back things up.” Field trials are also being conducted on a new sand carrying version of Wellfux for CHOPS applications called Wellflux S. “It’s showing great success so far. We are not quite to a commercial level with it, but we are hoping to take it to a commercial market within the next three months or so,” said Johnson. Oilflow is also having some success with Proflux solutions on cyclic steam stimulation wells at its Peace River outlet. Staff from the Lloydminster and the Calgary locations were at the oil show to answer viscosity related issues and explain how Proflux technology works in the shaky shake demonstration introduced during the 2010 heavy oil show. “We’ve found that’s given us the best bang for our buck,” said Johnson. “I would like anyone with questions to give us a call. If someone has an issue with viscosity, we want to have a conversation with them and show them how the product works.”

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PIPELINE NEWS October 2012

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Record trades enrolment at Lakeland „ By Geo Lee Vermilion – The more things change, the more they stay the same for the School of Trades and Technology at Lakeland College in Vermilion. Enrolment is up by 136 students at the start of the new academic year along with some new courses and instructors to meet the ever growing demand for apprentices that is led by the oil and gas industry. A record of 1,092 students are registered for nine apprenticeship programs this fall including the ďŹ rst year of a new online parts technician course and an upcoming ďŹ rst level gasďŹ tter course in the spring of 2013. Quotas are set by the apprenticeship board in April of each year. “The numbers are up again this year. They keep increasing.

Lakeland College has hired new instructors for nearly all its apprenĆ&#x;ceship training courses including automoĆ&#x;ve service technician training taught at the Vermilion campus. A street rod technologies course will be added to the mix next fall.

Industry keeps wanting more people,� said Bert Samuelson, dean of trades & technology. “All the oil companies are still looking. Fort McMurray is

growing. Foster Creek at Cold Lake is growing quite a bit. Cenovus is looking for about 1,500 more workers. “Every area we look at they are increasing

and wanting more apprentices, more foreign workers coming in – any place they can ďŹ nd some employees.â€? Extra seats are likely to be added in the

coming weeks as was the case last year when the initial enrolment of 956 was bumped up to 1,020. The electrician apprenticeship program is

most in demand with a total of 228 students enrolled in the four levels followed by the fouryear heavy equipment technician program with 192 students. Carpentry is only trades program with slightly overall lower numbers than last year, but Samuelson said registration tends to go in cycles for all of the apprenticeship programs. Interest is also strong for a new thirdyear class for instrument technician with plans to introduce the fourthyear level course as early as next fall. “The curriculum is set by Alberta Apprenticeship and Industry Training,â€? said department chair Roxene Lockhart. “Every year, it is looked at by a committee to determine what needs to be changed. After that, the learning modules are also changed. ɸ Page C14

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PIPELINE NEWS October 2012

A strong demand for skilled labour in the oil and gas industry has helped to drive up enrolment in a variety of apprenƟceship training courses at Lakeland College in Vermilion this fall including welding. Photo submiƩed

Renovated ɺ Page C13 “For our auto service technician and our heavy equipment technician program, we will have all new learning modules this year because the curriculum has changed substantially. “Some equipment needed to be purchased to go with our curriculum so we have purchased that new equipment.” Lakeland completed an $11.5 million renovation of its Applied Engineering Building in November 2011 to make way for expanded welder and steamfitter-pipefitter programs. Registration for annual fall apprenticeship courses opens in May. There were higher than normal volumes this year as the economy in Western Canada continues to grow. “The demand is coming from construction and oil and gas – more so from oil and gas,” said Lockhart. “The courses have been filling up faster than we have experienced before, and also for March and April’s intakes as well. We don’t normally see people registering that far in advance. “In electrical, we have wait lists for all four years, and we are looking at increases for those classes and also in heavy equipment.” Lakeland is delivering the first online training period of the parts technician program this semester via eCampusAlberta. In a partnership arrangement, Red Deer College that will offer the second training period online. ɸ Page C15

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PIPELINE NEWS October 2012 ɺ Page C14 The program runs from September to the end of June on a selfstudy Internet basis for employees working in the parts business. “Typically, parts technicians don’t need a lab component. A lot of our feedback from them is that they can’t afford to leave their current employment to go to school,” said Lockhart. “We just felt the parts technician was the easiest to do online – easier than any other trade because they don’t have to be here at the school. “If this is successful, there could be the development of the third training period so a student could do all of their training for a parts technician online.” Auto parts knowledge will come in handy next fall with the introduction of a one-year street rod technologies program for careers in vehicle customization and restoration. “It seems to be a pretty big business. There’s no one in Canada that we know of that teaches it in an institute,” said Samuelson. Samuelson believes high disposable incomes and auto collectors in the oil and gas industry will generate a market for automotive welding, sheet metal shaping and paint prepping skills. “We have sent some staff to Laramie, Wyoming for some training, and we are kind of mirroring that up here in Canada,”

said Samuelson. Lakeland will also pilot a new 40-hour solar installation Level 1 course starting in January focused on the application, design, installation and operations of photovoltaic systems. The course will be taught on weekends and includes the North American Board of Certified Energy Practitioners entry level exam. Lakeland uses solar energy at its Centre for Sustainable Innovation and the e-cabin used by environmental sciences students in the renewable energy and conservation program. The campus is also repeating its successful 36-hour B-pressure welding prep course and exam for journeymen welders through continuing education evening classes this fall. “We structured around what the industry needs are,” said Eileen Arthur Lakeland’s business industry development co-ordinator. “We will run on weekends, and we will do a survey if that’s not working, or if industry comes to us and says

they want it specifically for a week, we can tailor it for their needs.” More than 70 students are enrolled at Lakeland in ongoing pre-employment training leading to entry level apprenticeships as a welder, steamfitterpipefitter and instrumentation technician, electrician and automotive service or heavy equipment technician. “There is strong demand for that. It’s one of our better programs,” said Samuelson. “It’s a good entry level to get into the business. Lots of students come out of high school, they don’t know anybody or know to get into industry. They can come here and take our prep program. “There’s a practicum component which puts them out in industry. About 90 per cent of them get hired on as apprentices.” The Vermilion campus also delivers career and technology studies in mechanics, carpentry, electrical and welding courses along with teaching equipment to regional high schools and hosts regional skills competitions in trades.

C15

Novus turns things around Dodsland – Novus Energy Inc. reversed its net loss in the second quarter from the same period last year and has expanded its Viking acreage position. Net income for the three months ended June 30, 2012 was $1.09 million versus a loss of $760,000 in the comparative period of 2011. For the sixmonth period, net income was $3.93 million versus a loss of $2.09 million during the same period last year. In addition to the 124 net sections of Viking rights the company holds in the Dodsland area of Saskatchewan, Novus recently amassed 46 net sections of Crown lands prospective for Viking oil in the Provost area of Alberta, on trend with its existing Dodsland assets. The acquired land is proximate to historical vertical Viking oil production and recent successful horizontal drilling activity on both sides of the Alberta/Saskatchewan border targeting Viking oil. Novus believes the assembled acreage meaningfully increases the company’s future drilling and development inventory. Drilling on these lands is planned for early 2013. During the second quarter of 2012, Novus drilled 13 (13 net) wells, all of which were Viking horizontal oil wells in the greater Dodsland area. Eight wells (eight net) were completed by June 30. For the first half of 2012, Novus drilled 26 (26 net) wells, all of which were Viking horizontal oil wells in the greater Dodsland area. Sixteen wells (16 net) were completed by June 30. Novus has completed the installation of the main infrastructure in the Flaxcombe area by adding 11 kilometres of emulsion lines that tie into the main transmission line feeding its facility. Thirty-six wells currently have gas conservation and are tied in, with new wells tied in as they are completed. Load water recovered is being handled by the company owned disposal facility. Produced water coming into the main facility is injected into a second well tied into the plant, while sales gas flows to a sales line, making it an enclosed system. The company has 625 net high quality risked Viking oil drilling locations on its 124 net sections of land in Dodsland based on an eight well per section drilling density. This already significant opportunity base does not reflect the ability to down space from eight to 16 wells per section or the future potential to waterflood the reservoir. Novus believes that the development of the Viking resource is in its early stages and that there is further significant upside to recovery factors by applying secondary recovery methods. The 625 Viking locations do not include potential locations on the company’s recently acquired Alberta Viking lands.

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C16

PIPELINE NEWS October 2012

Industry cheers Petroleum Centre sod turning „ By Geo Lee Lloydminster – Lakeland College scheduled the sod turning of its $17 million Petroleum Centre at the Lloydminster campus for the start of the Lloydminster Heavy Oil Show. The timing on the afternoon of Sept. 11 helped to draw attention to the growing student and industry demand for oil and gas programming at the campus. “This is a great day for Lakeland College and for energy programming,â€? said Kara Johnston director of Energy, Entrepreneurships and Aboriginal programming. “This is what we have been working for for the last couple of years. Finally, that dream is a reality and we will be able to expand our programming to increase our student numbers and to respond to industry in this area.â€?

ConstrucĆ&#x;on of Lakeland College’s new Petroleum Centre in Lloydminster oĸcially kicked oÄŤ with an indoor sod-turning event on Sept. 11. Holding shovels are (l-r), Kara Johnston director of Energy, Entrepreneurship and Aboriginal programming; Richard Starke, MLA Vermilion-Lloydminster; Milt WakeÄŽeld, Lakeland board chair; Melanie Harper, ÄŽrst year power engineering student; Lakeland president, Glenn Charlesworth; Al MacLauchlan, Husky Energy’s vice-president upgrader complex, and Lloydminster mayor, JeÄŤ Mulligan.

The focal point of the new Petroleum Centre will be a large power engineering and heavy oil lab with three steam boilers, water

treatment equipment, a turbine generator and breakout training spaces. The lab will also serve as a fully-functioning power plant that

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land-trained heavy oil operations technicians and power engineering grads for thermal production of heavy oil. ɸ Page C17

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PIPELINE NEWS October 2012 Éş Page C16 “Over the last few months, we started up two new plants that require a whole new group of operations people and the skill sets that they need to bring to the table have been changing over time,â€? said Paul Zorgdrager, Husky’s vice-president, production operations for heavy oil in Lloydminster. “With more thermal, there is much more need for power engineering, which is exactly in alignment with what this program is doing.â€? Husky Energy donated $1.1 million to Lakeland in May for heavy oil training. The donation was timed with the start-up of its 8,000 barrel per day South Pikes Peak thermal project and its 3,000 bpd Paradise Hill thermal project in 2012. Husky currently produces about 24,000 bpd from thermal production with more to come. “This is not just a Husky trend, but a trend across the entire

Lakeland College president Glenn Charlesworth and Kara Johnston, director of Energy, Entrepreneurship and Aboriginal programming break into smiles with the announcement of a $250,000 donaĆ&#x;on from the Gwyn Morgan and Patricia TroĆŤer FoundaĆ&#x;on.

industry in the Lloydminster area,� said Zorgdrager. More students will have the opportunity to take energy related programming to meet industry needs thanks to a $250,000 donation from the Gwyn Morgan and Patricia Trottier Foundation that was announced at the ceremony. An endowment fund will be set up to generate at least three annual awards to help fund students in oil and gas training at Lake-

land. The ďŹ rst Gwyn Morgan Centennial Award will be presented in 2013 during Lakeland’s centennial year celebrations. “We’re supporting Lakeland College because of the college’s focus on hands-on training. Lakeland provides its students with many real-world experiences through labs, practicum placement and ďŹ eld trips,â€? said Gwyn Morgan, retired founding president and CEO of EnCana

Corporation in a news release. “Another important factor is that Lakeland oers programming to help people who currently work in the industry get the training they need to advance their career.â€? Other industry partners who have made it possible to construct the Petroleum Centre, develop curriculum and fund student scholarships include Allan Markin, Canadian Natural Resources Limited,

Archer Daniels Midland Company, Husky Energy, Cenovus Energy Incorporated, and Keyera Corporation. The government of Alberta contributed nearly $10 million in capital funding Construction due to begin in November when the 365 day countdown begins for Lakeland’s centennial in 2013. “This is a very signiďŹ cant day and marks an important milestone in the history of our college and our economic region,â€? said

C17

Lakeland president Glenn Charlesworth. “Together with the support of partners, we are pleased to be able to proceed with the construction of this sophisticated facility that speciďŹ cally addresses the training and educational needs of the petroleum and energy sector.â€? The new Petroleum Centre will include equipment to simulate heavy oil upgrading and steam assisted gravity drainage or SAGD processes in the lab. Lakeland was at the Lloydminster oil show and banquet to showcase their facility, programming and to promote the need for additional funding. “There’s deďŹ nitely a need for more funding,â€? said Johnston. “We are looking at having top quality innovative equipment in our lab. The more of that funding that comes from industry the better. “We are taking direction from industry. If they want to buy it, I will put it in there.â€?

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C18

PIPELINE NEWS October 2012

PIPELINE NEWS October 2012

C19

TransCanada gets nod for two pipelines „ By Geo Lee Calgary – TransCanada Corporation is poised to construct two dierent pipelines in Canada and the United States, with both projects announced just days apart earlier this summer. TransCanada Corporation has been chosen to build the proposed $660-million 90-kilometre Northern Courier Pipeline. The Northern Courier will transport bitumen and diluent between the Fort Hills mine site and the Voyageur Upgrader located north of Fort McMurray, Alberta. Northern Courier Pipeline is fully subscribed under long-term contract to service the Fort Hills Mine, which is jointly owned by Suncor Energy Inc., Total E&P Canada Ltd. and Teck Resources Limited and is operated by Suncor Energy Operating Inc. The announcement on Aug. 1 cautioned the pipeline is conditional on the sanctioning of Fort Hills by its co-owners and on receiving regulatory approval. “We appreciate the conďŹ dence placed in us to build, own and operate the Northern Courier Pipeline,â€? said Russ Girling, TransCanada’s president and chief executive oďŹƒcer. “With over 60 years experience in Alberta and North America, TransCanada is a leader in providing safe, eďŹƒcient and reliable operation of energy infrastructure, while respecting the communities and environments where we operate. “We look forward to providing additional solutions to meet the transportation needs of growing crude oil production in Alberta."

TransCanada is also pleased to start the construction of its 780-kilometre Gulf Coast pipeline with the ďŹ nal permit from the U.S. Army Corps of Engineers issued on July 27. “Receiving this ďŹ nal key Army Corps permit for the Gulf Coast Project is very positive news,â€? said Girling. “TransCanada is now poised to put approximately 4,000 Americans to work constructing the US$2.3-billion pipeline that will be built in three distinct ‘spreads’ or sections. “The Gulf Coast Project will contribute millions in property taxes to counties in Oklahoma and Texas, money that can be used to build roads, schools and hospitals.â€? The Gulf Coast pipeline is an extension of TransCanada’s main Keystone pipeline that will transport crude oil from Cushing, Oklahoma to reďŹ neries in Texas. Gulf Coast reďŹ neries will be able to access lower-cost domestic production and avoid paying a premium to foreign oil producers, reducing cost and U.S. dependence on foreign crude oil. The U.S. Department of State is currently reviewing TransCanada’s application for a Presidential Permit to proceed with the 1,897-km Keystone XL pipeline from Hardisty, Alberta to Steele City, Nebraska and is expected to make a decision in the ďŹ rst quarter of 2013. TransCanada also continues to work with the Nebraska Department of Environmental Quality to ďŹ nalize a route that avoids the environmentally sensitive Sandhills area in that state. TransCanada has voluntarily agreed to 57 ad-

ditional safety procedures that will be incorporated into the construction of its crude oil pipelines in the United States and Canada. The stepped up safety standards will include a higher number of remotely controlled shuto valves, increased pipeline inspections and burying the pipe deeper in the ground. TransCanada also uses a technique called horizontal directional drilling to drill under major rivers to a minimum of 25 feet. “This will allow us to bury the pipe deeper on both sides of the river bank, oering protection from oods or high river levels,â€? said Girling. “The pipe will be made of thicker steel as it crosses rivers, will operate at a lower pressure and be further protected by advanced non-abrasive coatings.â€? Keystone has safely transported more than 280 million barrels of crude oil from Alberta to markets in the United States. The proposed Northern Courier Pipeline will complement TransCanada’s extensive operating experience in Western Canada. TransCanada currently operates 24,200 kilometres of natural gas pipelines across Alberta and 3,500 kilometres of crude oil pipelines through the operation of the Keystone Pipeline. TransCanada expects to ďŹ le its initial regulatory application in late 2012. The ďŹ nal pipeline route will be determined with Aboriginal and stakeholder input, as well as consideration for environmental, archaeological and cultural values, land use compatibility, safety, constructability and economics.

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PIPELINE NEWS October 2012

PIPELINE NEWS October 2012

C21

Lloydminster Heavy Oil Show & Symposium 2012

Above: Kaz Matsumoto, leĹŒ, and Dan Knapp from STARS, hold up a model of an air rescue helicopter while promoĆ&#x;ng the service during the Lloydminster Heavy Oil Show. STARS opened a base in Regina in 2012 to be followed by a base in Saskatoon this fall.

Above: Riding the Red Tiger, the name of this Schlumberger cement truck on display at the Lloydminster Heavy Oil Show, are (l-r) Calvin Lonetz, Tyler Conrad and Tyler CurĆ&#x;s.

Above: The Saskatchewan Resources booth was a popular desĆ&#x;naĆ&#x;on for visitors to the Lloydminster Heavy Oil Show. Picture at the booth are Ministry of the Economy employees: (l-r) Jordan Utke, Brady Michel, ScoĆŠ Lenz, Shaun ZunĆ&#x;, and Lovyl Zweifel.

Dean Holoein, an on-highway trucks sales consultant for Reginabased Kramer Ltd., aĆŠaches the Ňag pole on the ladder of this 13 L Cat tank truck with help from co-worker, Ian Capnerhurst standing on top of the tank. The new 475 hp diesel powered truck is the ÄŽrst Cat oilÄŽeld truck Kramer is markeĆ&#x;ng to the industry in Saskatchewan. The Ňag helped to generate a lot of aĆŠenĆ&#x;on at the Lloydminster Heavy Oil Show. Kramer is the Cat dealer for Saskatchewan.

LeĹŒ: More the 6,500 visitors toured the indoor and outdoor exhibits at the Lloydminster Heavy Oil Sept. 12-13. This year’s show was held in conjuncĆ&#x;on with the Heavy Oil Technical Symposium.

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PIPELINE NEWS October 2012

Baker Hughes to build up in Lloyd

Baker Hughes’ arƟĮcial liŌ sales team of Jason Higgins, leŌ, Kris Welin, and Rod Stearn from Calgary were at the Lloydminster Heavy Oil Show to promote their company’s product and brand in their busy heavy oil market. The company will start construcƟon this fall on a new building in the Hill Industrial Park in Lloydminster in order to consolidate four growing locaƟons into one complex.

Story and photos by Geoff Lee Lloydminster – Baker Hughes expects to turn the sod on a new multi-million complex in Lloydminster this fall that will see its expanding area operations consolidated under one roof. News of the project was broken to Pipeline News by Rod Stearn, operations director for the company’s upstream chemicals division in Calgary,

at the Lloydminster Heavy Oil Show Sept. 12-13. “We have four different locations in Lloydminster. We have a long history of doing business here,” said Stearn. “Looking ahead at the future of the industry here and the opportunity, we felt it made sense to consolidate the four properties into one location. “We are going to be moving ahead with that in the near future.

“Right now, we haven’t closed on our land, but it looks like we are going to be in the northwest portion of Lloydminster, in the industrial park there.” The selected building site is a 13 acre parcel of the land in the Hill Industrial Park and will serve as a one-stop base for the company’s manufacturing, distributing and warehousing. ɸ Page C23

PIPELINE NEWS October 2012 ɺ Page C22 “It’s going to fairly substantial. It’s a multi-million investment for us,” said Stearn. Baker Hughes provides a wide range of heavy oil products and services for drilling, formation evaluation, completion, and production in the Lloydminster area. “Lloydminster has been good to us. It’s a very steady environment to work in. There is a lot of upside,” said Stearn. “The producers are very active. When we look ahead, we see it being a strong market to be in for a long time. “When we build facilities like this, we are looking at 20 to 30 years down the road and making sure we are making the right choice. “Lloydminster is an excellent place to ensure you have a strong foothold to represent your brand and allows your company to grow.” Stearn staffed indoor and outdoor booths at the Lloydminster show to gain product and brand exposure for Baker Hughes’ heavy oil solutions products and technology. “Today, you see us at the trade show representing the chemical product line, pumps, completion tools, drill bits and wire lining. We have a full suite of products to support in the oil industry in Lloydminster,” said Stearn. “Obviously, the heavy oil aspect around here puts us in a position where our marketing and research and development is skewed toward that. That’s what you’ll see represented in Lloydminster.” The U.S.-based company spends approximately $400 million a year on research and development as a leading supplier of oilfield services, products, technology and systems to the worldwide oil and natural gas industry. “Continuous improvement is something that’s expected of us from our customers. We fall in line with our customers, and are looking to be better every single day,” said Stearn. “We have some unique products that provide specific value to the Lloydminster market. “Our sand suspension products have made a significant difference here. That’s one thing that we are really showcasing here today as well and a lot of things we have been able to accomplish with our pump business in Lloydminster. “We want to showcase that and make sure people are aware of our brand. “If there are questions about our product line or problems that people are having in the field, we are able to deliver some solutions to them.” Stearn handed out information kits on the Baker Hughes’ line of progress-

Who, What, Where of the Canadian Oilpatch

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ing cavity pumping systems for heavy oil including rod driven PC pumps and electrical submersible PC pumps (ESPC). The company also manufactures its proprietary LIFTEQ ESPC which eliminates rods and expands the operating range of PC pump systems particularly in deviated and horizontal wellbores. Stearn said it’s a good time to be doing business in Lloydminster because it’s an active market and the new building will help them to stay in line with where their customers are going. “Construction will start in the next month or so. We hope to be in by the end of next year,” he said. “Construction is a tricky business right now. It’s very active and it’s easy for timelines to slide. “We hope to break ground in the fall and have things going so we can work through the winter on it.”

Stephanie Reiber, a Baker Hughes operator in the Provost, Alberta area, and Josh Brevnig, Provost staƟon manager, manned this company wireline truck exhibit and some high resoluƟon Micro-Vert downhole casing inspecƟon tools in the foreground.

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PIPELINE NEWS October 2012 The ÄŽrst speaker at the 2012 Heavy Oil Technical Symposium held Sept. 12-13 was Dean Gordon, a gas liĹŒ/hydraulic liĹŒ product line manager for Weatherford in Calgary. Gordon presented a case for using a jet pump as a rodless liĹŒ soluĆ&#x;on for cold produced heavy oil wells with high sand content in the Lloydminster area.

Jet pump ideal for high sand CHOPS wells „ By Geo Lee Lloydminster – A hydraulic jet pump may be the choice of last resort to improve the production of high sand content or deviated heavy oil wells, but it works. The jet pump has proven itself to be a viable rodless lift solution for difďŹ cult to produce cold heavy oil production with sand or CHOPS wells in the Lloydminster area. That was the bottom line message of a presentation by Dean Gordon, a hydraulic lift product line manager with Weatherford in Calgary, to kick o the 2012 Heavy Oil Technical Symposium held in the Prairie Room at the Lloydminster Exhbition Grounds Sept. 12-13. “It’s a method of artiďŹ cial lift commonly used where there is rod wear, deviated wellbores or deep and excessive gas production,â€? said Gordon. “In the Lloydminster area, there is more sand, and in other areas it may be high gas volume or depth.â€? Other CHOPS challenges that can be overcome with a jet pump are frequent rig intervention, lost production due to downtime, and viscous cold heavy oil. Gordon’s presentation focused on a reverse ow application of the jet pump, whereby pressured “power uidâ€? which is usually water or oil, is injected down the annulus through a jet pump and co-mingles with produced uids and solids which are pumped back to the surface. ɸ Page C25

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PIPELINE NEWS October 2012

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Dean Gordon, a gas liŌ/hydraulic liŌ product line manager for Weatherford in Calgary, leŌ, accepts a speaker’s giŌ from Mark Bacon, chair of the Lloydminster secƟon of the Society of Petroleum Engineers at the 2012 Heavy Oil Technical Symposium Sept. 12-13.

ɺ Page C24 “It brings sand with it – with no moving parts as long as you can keep the fluidity and velocity of the fluid high enough, the sand doesn’t have a chance to settle and it’s all brought to surface,” said Gordon. The main components of a jet pump are the nozzle, mixing tube throat and a diffuser that creates a high discharge pressure to return the combined fluid back to the surface. Jet pumping has been around since the early 1970s, but modern systems take liquid from a surface reservoir that is put through a multiplex piston pump or horizontal electrical submersible pump to increase its pressure. Weatherford uses its own triplex pump which is manufactured in Canada, along with sheltered surface equipment it designed for cold winters. The multiplex pumps Weatherford uses power the fluid to the jet pump under pressure up to 4,000 pounds. One pump can handle four or five wells depending on horsepower and volume requirements. In a standard flow set-up, the pumps inject the power fluid down hole through the tubing string. At the bottom of

the string, the power fluid is directed into the nozzle of the jet pump that can return more than 30 per cent sand content to the surface. “The maximum I have seen is 30 to 50 per cent by volume,” said Gordon, who added that the system has been working for 40 years. “We inherited the business and set it up a few years ago in Canada, and it’s been growing and been successful since.” The power fluid can be pumped down the annulus and heated to lower the viscosity of the fluid more commonly on wells with low water cuts. “Specific applications in the Lloydminster area are for CHOPS wells with a lot of sand production and for deviated wellbores. “You can land it at 90 degrees because there is no rod wear. It’s not going to compete against a PC pump or a pumpjack on a perfect well, but that’s not its purpose,” said Gordon. “In some areas it’s considered the choice of last resort. The jet pump always works.” Other advantages of the jet pump are that it has a production range up to 3,000 metres and operating temperatures above 200 C.

In addition, one surface unit can produce multiple wells or well pad applications. The system is ideal for remote wells and a range of heavy oil applications including some trial steam assisted gravity drainage or SAGD applications that Weatherford plans to pursue over the next eight months. Other potential applications are for cyclic steam stimulation, steam floods, and CHOPS with diluents.

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PIPELINE NEWS October 2012

Saskatoon Boiler to tap into Áare gas Ray Graves, president of Saskatoon Boiler, brought this 25 hp oil Įred boiler for oilĮeld steaming to the Lloydminster Heavy Oil Show. The independent manufacturer of boiler and pressure vessels is manufacturing an oil drilling rig boiler to run oī Ňare gas. With roots daƟng back to 1914 when it was known as the Saskatoon Welding Company, Saskatoon Boiler will celebrate its 100th anniversary in 2014.

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Lloydminster – Saskatoon Boiler Manufacturing Co. Ltd. expects to build up a head of steam from new business contacts made at its OTS series boiler exhibit at the Lloydminster Heavy Oil Show. The locally-owned, independent manufacturer of boilers and pressure vessels based in Saskatoon is also stoked about the market potential for a new oil drilling rig boiler to be fueled by flare gas. “We are just outfitting a boiler on an oil drilling rig. It’s a 125 hp boiler and we are outfitting it with a combination diesel fuel and natural gas burner,” said company president, Ray Graves. Saskatoon Boiler is working on the project with a company in Calgary to develop boilers for drilling rigs in southeast Saskatchewan and northwest Alberta where flaring is prevalent. Graves said the partner company has developed a system whereby they gather up the flare gas from oil wells, compress it and then deliver it to oil drilling rig customers. “This gas ends up serving a useful purpose rather than being flared off,” said Graves. “It’s a very exciting thing to be involved with. It represents a whole new market for us.” Graves said the product is “entering the market” in the Estevan area and it will also be going to the northwest corner of Alberta on some other boilers. ɸ Page C27

PIPELINE NEWS October 2012 ɺ Page C26 Graves was also eager to talk about his company’s boilers and the oil fired 25 hp OTS series boiler on exhibit with a sold sign on it. “We make quite a variety of boilers. In the context of the oil show, the boilers that we are concentrating on and exhibiting are the boilers that are used in the oil industry specifically,” said Graves. “The one that is on display would typically go on a truck van for servicing in the oilfield. We build boilers for drilling rigs, slop oil plants and everything that’s involved in producing and operating oil.” The OTS boilers go up 150 hp, with the smaller unit having the “space miser” option. This option offers a compact unit consisting of the blowoff and condensate return tank mounted underneath the boiler to provide a compact package suitable for situations of limited space. The main oilfield application of the 25 hp boiler is for steaming wellheads and valves in the winter months. The boiler is installed in a mobile van. “It’s fit up differently than it would be fit up for a permanent installation,” said Graves. “The boiler has to be drainable in all fittings and pumps and things of that nature because the boilers are going to freeze at some time in travel so everything has to be drainable so it can’t freeze up and cause any damage.” Graves said these portable boilers are among his best sellers, with applications in a range of industries for their full line of boilers. “Here in Lloydminster, there a truck service company that has one of our boilers; dry cleaning

plants have them – the ethanol plant at the North West Terminal in Unity has a very large boiler of ours,” said Graves. “We supply Grit Industries with their small

fuels; pressure vessels; and custom fabricated large sectional pieces weighing up to 60 tons. The company has a full-fledged factory in Saskatoon that Graves said is the only one like it west of the Toronto area. “We do all our own designs in-house. We have a full engineering department. We probably build a bigger variety of bigger styles of boilers than any other boiler factory. “We have an interest in a boiler factory in Mexico and they build some of our boilers for us up to the hydro test stage, and then we bring them up to Saskatoon and finish them off and test them and ship them off. “That has taken the place of building a second factory.” Saskatoon Boiler has distributors and service depots throughout Canada and the United States with the oil and gas industry as its main client for worldwide sales. “Siberia has become a very good market for us because we know how to outfit the boilers for cold weather,” said Graves. The company will be celebrating its 100th anniversary in 2014 having originally been established as the Saskatoon Welding Company in 1914. The Graves family has been involved in running the company since 1931 and at the age of 78, Graves came to the oil show to share his expertise and meet a lot of familiar faces in the oil and gas industry. “We hope to see some of our existing customers. We have a lot of them in the Lloydminster area and of course, we are trying to find new customers,” he said.

“We do all our own designs in-house. We have a full engineering department. We probably build a bigger variety of bigger styles of boilers than any other boiler factory.”

- Ray Graves President Saskatoon Boiler boilers for their metering systems. We sell them a couple of hundred boilers a year.” Saskatoon Boiler produces firetube boilers up to 1250 horsepower that are fired by gas, oil and solid

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PIPELINE NEWS October 2012

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B.C. body builder bulks up for oil show Paul Sorensen was pleased to show oī this new picker truck built by Brutus Truck Bodies by Nor-Mar Industries in PenƟcton, BriƟsh Columbia at the Lloydminster Heavy Oil Show. Approximately 90 per cent of company sales are to the oil and gas industry in Western Canada.

Lloydminster – Paul Sorensen is probably the only exhibitor at the Lloydminster Heavy Oil Show who could have brought a fresh fruit basket or some wine to share with customers. Sorensen is a sales adviser for Brutus Truck Bodies by Nor-Mar Industries Ltd. in Penticton, B.C. in the heart of orchard country in the sunny Okanagan Valley. Handshakes had to suffice as Sorensen came to the oil show to sell his basket of truck bodies for oilfield use. They included service bodies, welder decks, oilfield decks and lube trucks. “We build our service bodies and service decks for just about any vehicle out there from Ford to Dodges up to Freightliners, Macs and Peterbilts and anything like that,” said Sorensen. “We have a facility in Penticton where we manufacture our bodies. We do build very large vehicles as well – large lube trucks as well. The last one that went out was on a tridem chassis.” The Brutus Truck bodies are designed for the forestry, construction, mining, and oilfield

sectors and harsh operating conditions in Western Canada. “Most of our oilfield sales are in Alberta, Saskatchewan and Northern British Columbia. We also service a lot of the industry as well,” said Sorensen. “We send lot to Fort St. John, Dawson Creek, and we do a lot of work for Finning which is all over B.C. “I would say the oilfield is about 90 per cent of our business. We are very busy.” The company’s oilfield decks can be built to any size chassis from steel or aluminum with high quality Fassi Cranes from one tonnemetre to 130 tm sizes. There is also a variety of hitch options. Brutus Truck Bodies is the Fassi dealer in B.C. and sells other cranes such as Maxilift and Cobra truck cranes that were part of the company’s oil show exhibit with lots of visitors dropping by. “It’s a good oil show here – lots of people out, and we do about three or four shows a year,” said Sorensen.

“We come to this one every second year. It’s a chance to meet new customers and you get to put some faces to the voices that you talk to on the phone.” This was Sorensen’s first trip to Lloydminster and his impressions about the industry and the community were favourable. “It’s amazing. I didn’t actually realize the heavy oil industry that was here. I didn’t realize it was as big as it is,” he said. As for the flat landscape compared to the mountains back home, he said, “It’s nice. I like it. I like the open space.”

This collecƟon of MaxiliŌ and Cobra cranes at the Brutus Truck Bodies exhibit aƩracted a lot of interest from visitors to the Lloydminster Heavy Oil Show. The company is based in PenƟcton and relies heavily on oil show markeƟng to sell its products in Alberta and Saskatchewan.

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PIPELINE NEWS October 2012

Kenworth engages tire kickers at Lloyd show

Kenworth Lloydminster truck sales rep Glen Armstrong hopes this Kenworth T370 truck on display at the Lloydminster Heavy Oil Show will generate a lot of sales mileage in the coming months. The truck comes equipped with a steamer package. Photo by Geoī Lee

Lloydminster – A lot of people kicked tires at the outdoor exhibits of oilfield vehicles and equipment at the Lloydminster Heavy Oil Show with Kenworth trucks attracting their fair share of hits to the delight of Glen Armstrong. Armstrong is a new and used truck sales representative for Kenworth Lloydminster who was eager to engage all tire kickers and rubberneckers about the Kenworth lineup on display. “We’ve got a few different units. We’ve got a C500 with a sleeper unit on it and a Lennox rig up package (Lennox Welding & Supply Service) on it,” said Armstrong. The C500 is described as the “ultimate beast of burden” by Kenworth marketers. “We’ve also got a T800 that can be ordered in a variety of different configurations for on or off road

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applications,” said Armstrong. “It’s a pressure truck chassis which a customer has ordered and put together for pressure work.” The display featured another T800 with a 100 barrel oil tank on it from Advance Engineered Products. It was to be sold as a crude haul body job. There was also a T800 with a tri-drive unit sporting a hydrovac package on the back of it and T370 steam unit rigged and ready for sale and work in the oilfield. “A lot of our products are sold for the oilfield. It supports us very well and we are thankful and grateful for that too,” said Armstrong who noted the oil show is a great opportunity to meet new people in the industry. “Some of the people have been around for a long time, and maybe just need a new look at the product and a new look at us – it’s always good to attract new business and keep your old business going too.” Armstrong said Kenworth is the most popular oilfield truck on the market, with the T800 being the best seller for oilfield use. “The T800 is a multi-use truck. You see it on the highway, but also it’s very well suited to working in the oilfield with the ride quality, the set back front axle, and the good turning radius on it,” he noted. “It’s a truck that’s very visible – good visibility out of it with a little bit of a slope to the hood. “We also sell a lot of W900s.” The W900 is known for its long haul power,

performance and reliability in the oil and gas industry. The Kenworth Lloydminster dealership is a division of Edmonton Kenworth Ltd., which has other locations in west and south Edmonton. Edmonton Kenworth is touted as a full service company providing new and used truck sales, finance, parts, service, and body shop and leasing services. The company is on a sales and service roll again in 2012 with the recovery from the 2008 downturn in full swing. “It’s been gradually picking up again to where we are having a real busy year again this year,” said Armstrong. “Hopefully, there are a few more of them to come.” Kenworth Lloydminster works with a variety of installers to put a variety of oilfield-related equipment on the back end to be sold as a complete custom package. Customers can also purchase a stock truck and handle their own custom packages that are available at the Lloydminster dealership that is seeing a lot of customer traffic in a strong economy. “It’s a busy spot – lots of equipment going through it all the time, but of course, we’ve got a full mechanical staff in the back shop to keep this stuff working as it’s sold out in the oilfield or out in the highway,” said Armstrong. “It’s a full parts and sales and service facility, and it keeps us hopping most days.”

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Fall classes OrientaƟon day for Lakeland College students starƟng fall classes in the heavy oil operaƟons technician and heavy oil power engineer programs at Lakeland College took place at the Lloydminster campus on Aug. 28. Both groups assembled for a group photo in a corner of the lab where a new boiler will be installed in September. Photo submiƩed

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PIPELINE NEWS October 2012

Twin Butte offers to purchase Waseca Calgary – Twin Butte Energy Ltd. plans to continue to grow its heavy oil base in the Lloydminster area with a $127 million purchase offer for the assets of privately held Waseca Energy Inc. The Waseca acquisition will significantly increase the size and scope of Twin

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Butte’s heavy oil lands and opportunities in the Lloydminster area. “The acquisition of Waseca will provide Twin Butte with a low risk, high rate of return portfolio of over 130 development heavy oil drilling locations as well as over 30 exploratory targets providing significant upside potential for long term reserve appreciation,” said the company. At closing, Twin Butte will acquire Waseca’s current production of 3,500 barrels of oil per day of conventional heavy oil with the majority of it being 100 per cent working interest. The purchase will give Twin Butte a projected production rate of 19,000 barrels of oil equivalent per day with 89 per cent in oil and liquids up from the current 84 per cent weighting. The Twin Butte offer includes the assumption of approximately $7.5 million of positive working capital after accounting for estimated transaction costs. The deal announced on Sept. 3 follows the completion of Twin Butte’s $88.9 million amalgamation of privately-held Avalon Exploration Ltd. on Aug. 30. To complete that transaction, Twin Butte issued approximately 24.6 million common shares to acquire all of the outstanding securities of Avalon. The acquisition of Waseca’s assets involves a cash offer between $32.2 million and $58.9 million and 28.9 million to 39 million in common shares of Twin Butte to be determined by Waseca shareholders. Waseca shareholders choosing shares will receive 0.5133 Twin Butte shares for each Waseca share. Shareholders are expected to approve the amalgamation this November with required approval from the Court of Queen’s Bench of Alberta under the provincial Business Corporations Act. The Calgary-based company will also increase its share dividend on closing from $.015 to $.016 or to $0.192 per share. “The Waseca acquisition is consistent with Twin Butte's historic strategy of acquiring quality assets, with large resource potential within focus areas where Twin Butte has expertise,” added the company. “Twin Butte’s undeveloped land, seismic, and development and exploratory drilling inventories have increased materially since the beginning of 2012 which will lead to strong capital efficiencies in its capital plan for many years.” Waseca is owned 81.1 percent by Sprott Resource Corp. which is expected to own approximately nine per cent of the outstanding Twin Butte common shares on closing. “We believe that Twin Butte's dividend plus growth business model focused on low-risk, high-return Lloyd heavy oil is attractive and sustainable," stated Kevin Bambrough, president and CEO of Sprott Resource Corp. The acquisition will add Waseca’s 46,000 net acres of undeveloped land in the Lloydminster area to Twin Butte’s holdings, bringing the company’s total to approximately 220,000 net undeveloped acres. The Waseca lands are contiguous to Twin Butte's existing lands in the Lloydminster area. Twin Butte will also receive a significant seismic database of 2,500 kilometres of 2D data and 16 square kilometres of 3D data. Waseca has proved reserves of 4,420 mboe and proved plus probable reserves of 7,950 mboe based on an independent reserve report effective Dec.31, 2011.

PIPELINE NEWS October 2012

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Tisdale Recorder/ Parkland Review (306) 873-4515

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C34

PIPELINE NEWS October 2012

Shell approves oilsands carbon capture Calgary – Shell Canada is developing the ďŹ rst carbon capture and storage facility tied to an oilsands operation in Canada with $865 million in combined CCS funding from the Alberta and federal governments. Construction of the Quest project has already begun and will employ about 400 skilled workers over nearly 30 months, peaking at about 700. Quest is touted as a fully integrated project that will demonstrate existing capture, transportation, injection and CO2 storage technologies. “Quest is another example of how we are using technology and innovation to improve the environmental performance of our oilsands operations,â€? said John Abbott, Shell executive vice-president of heavy Oil during the Sept. 5 announcement in Calgary. The sanctioning of the $1.35 billion CCS project by Royal Dutch Shell was made possible with $745 million over ten years from Alberta’s carbon capture program and $120 million from Ottawa’s Clean Energy Fund. The balance of the cost will be funded proportionately by partners in the Athabasca Oil Sands Project with Shell Canada as the 60 per cent operator and Chevron Canada and Marathon Oil at 20

per cent each. Quest CCS will be operational by late 2015 and will reduce carbon dioxide emissions from bitumen processed at Shell’s Scotford Upgrader near Edmonton by as much as 35 per cent per year. The project will capture more one million tonnes of CO2 per year from the upgrader and it will be shipped 80 km north by an underground pipeline to a storage site. From there, it will be injected and stored permanently two kilometers underground into an impermeable Cambrian sands formation. Abbott told the media the project would only capture about 15 per cent of emissions from the Athabasca Oil Sand Project which produces 255,000 barrels of bitumen a day. The Quest CCS project ďŹ ts the federal government’s plans to reduce overall emissions in Canada by 17 per cent from 2006 levels by 2020. Ottawa earmarked a $1 billion Clean Energy Fund in 2009 for CCS projects supported by a $2 billion in carbon capture fund set up by the Alberta government in 2008 to improve the environmental performance of province’s energy sector. The Quest CSS project comes as a relief to both governments after TransAlta Corp. and its partners

abandoned their $1.4 billion Pioneer CCS in April despite $779 million of taxpayer support. The company cited a lack of buyers for the CO2 and uncertainty over the value of reduced emissions without a cap and trade program in place. Project Pioneer would have captured and stored a million tonnes a year from the 450 megawatt Keephills 3 power plant in Edmonton. “While we are disappointed that Project Pioneer will not go ahead, we now know the technology works and we still believe there is a future for CCS,â€? said chief executive Dawn Farrell in April. The sanctioning of the Quest CCS project by Shell has boosted the conďŹ dence of the federal government to continue funding CCS projects and technologies in the oil industry. “The Harper government will continue to invest in innovative technologies such as the Shell Quest project to help support high-quality jobs and responsible development of Canada’s energy resources,â€? said Joe Oliver, Minister of Natural Resources. “The project will help demonstrate the potential of carbon capture and storage technology in the oil sands and highlight Canada's global leadership.â€? In addition to Quest, Shell is involved in a number of major CCS projects worldwide.

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We’re hiring for various projects throughout Southern Saskatchewan

• FIELD SAFETY ADVISOR

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

- Candidates must have previous leadership/managerial experience within the Pipeline Construction industry (mainly underground lines max 16�). This position’s home base is in Regina. - The ideal candidate will have a CSO designation. This position will oversee pipeline construction projects in southern sk with a home base in Regina

• PIPELINE CONSTRUCTION LABOURERS • FOREMEN • HEAVY EQUIPMENT OPERATORS

-Employee & Owner Operators with Pipeline Construction Experience

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

Compensation: Competitive wages Overtime Daily Subsistence /Living allowance

Preferred Certifications H2S Alive Standard First Aid & CPR

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

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

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Matrix Well Servicing

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PERMANENT FULL-TIME HYDROVAC OPERATORS • Require class 3 or class 1 licence • Safety tickets HYDROVAC SWAMPERS • Require safety tickets Offering competitive wages, benefits available after 3 months. Offering living accomodations.

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RESOURCE GuĂ—de DOWXVJHRPDWLFV FRP

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

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LECLAIR TRANSPORT

516 Nesbitt Drive, Estevan • 634-2631

RICK CORMIER Manager

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

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

(Behind Power Dodge)

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

General OilďŹ eld Hauling

M.E.T. OILFIELD CONST. LTD.

Lyle Leclair Cell: 306-421-7060

“All Your Construction and Maintenance Needs� SPECIALIZING IN: ENGINES, PUMP UNITS, UNIT INSPECTIONS, PIPE FITTING, TREATERS AND PRESSURE TICKET WELDING

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(306) 457-7033 (306) 457-7673 lancew@aspentrailer.com www.aspentrailer.com 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

93 Panteluk Street, Kensington Avenue N Estevan, Saskatchewan PHONE: 306-634-8828 • FAX: 306-634-7747 cordell.janssen@nov.com • www.nov.com

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

District Manager Downhole

24 Hour Service Specializing in Industrial & Oilfield Motors

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

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PIPELINE NEWS October 2012

PUMPING UNITS

1280 912 640 456 320 228 160 114 80

FULL INSTALLATION SERVICE AVAILABLE!

Large inventory in-stock Call today for a quote!

PLATINUM Phone 403.264.6688 Toll Free 1.888.745.4647

Lloydminster

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PIPELINE NEWS October 2012

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