Pipeline News January 2013

PIPELINE NEWS Saskatchewan’s Petroleum Monthly

January 2013

Canada Post Publication No. 40069240

FREE

Volume 5 Issue 8

A3

PTRC proves you can send probes through wormholes

B1

Port of Churchill considered for crude export

Stompin' Out The Cold Don Cannon, who hauls Ňuid for Husky Energy, tries on a pair of steel-toed winter workboots made by Baĸn. Cold weather is good for business at Northern Factory Workwear in Lloydminster and Saskatoon.

Photo by Geoī Lee

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A2

PIPELINE NEWS January 2013

INSIDE SECTION A 4

Aquistore drilled, awaits CO2

17 Husky to double thermal by 2017

5

Q&A with Minister Tim McMillan

19 North BaƩleford starts 100 year party

6

Editorial

26 Baker Hughes proves CHOPS chemistry

7

Opinion

29 Bonnyville Oil Show

9

Hot sales for Grit's cold weather line

33 Dress for the cold

SECTION B 3

More women needed in the patch

9

4

Estevan's new mayor speaks

20 Stampede Drilling launches Rig 1

6

Weyburn mayor targets housing

24 Estevan's Microtel Įrst of many

8

Pipeline appointment drives rail demand

32 Fired up to heat frac water

More than just trucks: Clean Harbors

PIPELINE NEWS Saskatchewan’s Petroleum Monthly

HOCKEY NIGHT IN THE PATCH

Feb. 2013 Focus Contact your Sales Rep to be a part of the focus edition

SE SK and SW Manitoba • Phone: 306.634.2654

Cindy Beaulieu cbeaulieu@estevanmercury.ca

Carlyle Phone: 306.453.2525

Candace Wheeler

Deanna Tarnes

Kristen O’Handley

Teresa Hrywkiw

cwheeler@estevanmercury.ca dtarnes@estevanmercury.ca kohandley@estevanmercury.ca thrywkiw@estevanmercury.ca

NW SK Cell: 780.808.3007

SW SK Phone: 306.773.8260

Regina & Saskatoon Phone: 306.715.5078

Alison Dunning

Randi Mast

Stacey Powell

Al Guthro

observer@sasktel.net

randi@pipelinenews.ca

spowell@prairiepost.com

al@prairieng.com

PIPELINE NEWS January 2013

A3

TOP NEWS

Proving you can send sensors from one well to another

By Brian Zinchuk Pipeline News Calgary – When you produce heavy oil, you often produce a lot of sand. The big question for a long time is, what is left behind as the sand comes out?

Does it collapse on itself, or does it form wormholes?

And if so, do they actually aid in production?

The wormhole question has been answered conclusively by a joint parternership between the Regina-based Petroleum Technology Research Centre (PTRC) and Netherlands-based INACS3.

Not only have they proven wormholes exist between water injecting and producing wells, but they have successfully passed tiny sensors, called “motes,” between them. The implications of the research, and the paths it can lead to, are ground-breaking.

The stakes are huge. Using existing recovery methods such as CHOPS (cold heavy oil production with sand), heavy oil reservoirs in the SaskatchewanAlberta border region of Canada see only a five-toeight per cent recovery rate. In CHOPS production, a sand and oil mixture is extracted from the heavy oil field; the produced sand that comes up with the oil leads to the creation of empty spaces or “wormholes” in the reservoir. These wormholes form a potentially immense network of channels in unconsolidated sandstone preventing pressurization of the reservoir thus, influencing the efficiency of oil production. If the Canadian oil industry can better characterize these reservoirs, extraction methods can be improved, which could lead to up to a 20 per cent increase in yields while lessening deleterious effects on both the environment and extraction efficiencies such as excess water production.

The challenge is to better understand the structure of these reservoirs. If this network of wormholes exists, sensors should provide information about details as to their number, diameter, direction and location. For this purpose INCAS3 is developing sensor motes that can be injected into heavy oil reservoirs, collect relevant data, and return to the surface. The main issues to overcome are the size of the sensors, the extreme conditions they face, communication with the sensors from the surface, and retrieving the sensors out of the reservoir.

Pipeline News spoke via phone to Dr. John Van Pol of the Netherlands, the leader of INCAS3, while he was in Calgary with PTRC CEO Dr. Malcolm Wilson. They were attending meetings for the Sustainable Technologies for Energy Production Systems (STEPS) program.

INCAS3 is co-financed by the Dutch Ministry of Economic Affairs, the Province of Drenthe, the European Fund for Regional Development and the Municipality of Assen. The Dutch bring sensor expertise to the table, while the Canadians have the oil and gas experience.

Three sizes of motes were sent into the formation – round balls five, seven and nine millimetres in diameter. A small number of the nine millimetre motes were also tried. Some motes were solid, while the larger ones had tiny RFID electronic packages to identify themselves. The casing was a fibre-enhanced plastic that does not dissolve in oil, Van Pol said.

They also had to withstand 100 bars of pressure, or approximately 1,450 psi.

The test took place in November at a heavy oil Canadian Natural Resources Ltd. (CNRL) site. It was a waterflood situation, with two vertical wells, each roughly 500 metres deep, and spaced about 400 to 500 metres apart horizontally. One was a water injector, the other a producer.

There had been anecdotal evidence of open

channels between wells. Dye has been passed between wells in the past. Dye takes about one-anda-half hours to make such a trip, he noted. But Van Pol pointed out that a fluid can pass through a lot

These “motes,” Ɵny, inexpensive sensors, passed from a water injector well, through at least 400 to 500 metres of a heavy oil reservoir 500 metres deep, then through a progressing cavity pump and made it to surface intact.

Photo submiƩed

smaller places than a smaller object. This was a test to see if they could pass objects from wells A to B. The motes had to survive a trip of at least 1,500 metres, assuming they travelled in a straight line between the two wells. But there’s no way to know that, at least, not yet.

It’s an arduous journey. First they had to travel down the injection well, and find their way through perforations that, when made, were 12 millimetres in diameter. Van Pol noted those perforations could have changed over time.

Initially they tested to see if it was possible to inject motes into an injection well. They did, and got 50 per cent back, which meant they could carry on to the next step.

Testing was done at a Kudu Industries Inc. facility to see if one of their progressing cavity pumps could handle these motes; if they would chew up the pump, or the pump would chew up the motes.

Hard and soft shells were tried. A camera was passed through the pump. Ultimately, the test was also successful. While these motes are a lot larger than a grain of sand, Van Pol noted, “If they can withstand the grinding nature of sand, they can withstand these.”

That being done, the full-blown test was conducted. The probes were injected over three days, from the Nov. 12 to 14, and began to show up from the first day’s injection in the production well on the last day.

Going into one well, the motes could go off in any direction. Only one direction will take them to the producer well, although possibly through several paths.

Then the motes had to find their way through the perforations and into the producer well. There, they had to actually get sucked into the pump, not settling out in the bottom of the well. The motes had to have a similar specific gravity to oil, otherwise they would settle out.

The test proved for the first time there is a channel between the wells with a minimum opening of seven millimetres.

“It is possible for (for motes) to go into a well, then be caught by the PC pump and go 500 metres up,” Van Pol said.

They were able to recover five to 10 per cent of the motes used by early December. However, they had no data on any of the small number of nine millimetre motes making the journey. It took the injected motes roughly two days to make the journey.

The largest number appeared within 48 hours, but as of Dec. 3, they were still producing.

A few of the motes were ground up along the way. A significant fraction came out in pieces, he said. One RFID tag came out without a shell.

Among the first things they wanted to know was what sizes would work. Do they stay intact? Can they do it again?

Asked if this was the first time such a feat had been done in the world, Van Pol said, “As far as I know, it is. It’s the first time in a systematic way.”

“The ultimate goal is to test pressure, temperature and conductivity as a function of position. And then we need to know where the things are. The complicated thing is, I have to know where they are,” Van Pol said.

Normal navigation sensors, like those in a smartphone, will not work, he noted. Drift and size are two factors. Sensors such as three-dimensional accelerometers also need a battery and maybe an antenna. They are working with chip manufacturers to integrate that all into one chip.

And there’s one other important factor – cost.

“The whole mote idea is to be as cheap as you can,” he said. “We injected about 20,000. If the price is low enough, it doesn’t matter if one fails.”

He noted they are using a lot of relatively cheap things, and hope the majority will work.

“It’s not a shotgun approach. It’s a distributed system. We rely on a large number that will actually work.”

“We want to find out what the structure is down there. Are there channels? Do channels collapse?

It might be a length of one kilometre or two. I just don’t know. We don’t know if it’s a straight line or curly.

“Cool, isn’t it?”

Asked where this technology could take them, and the industry, he said, “We are looking at that now.” The PTRC and INCAS3 have a joint venture known as PI Innovation Centre (PI for PTRC and INCAS3.) Van Pol spoke of four to five years of research ahead. At the end of January there will be hosting a large-scale workshop, outlining a four to five year roadmap, which 20 to 30 experts are expected to attend.

“Reservoir mapping is the Holy Grail. If reservoir engineers know the structure down there, they can think of how to get it out,” he said.

Wireless downhole sensing should be feasible, he added.

“Can we detect pump integrity and pump status?” Van Pol asked, noting that was of interest to Kudu. “Can you analyze pumps as an early warning?

There are many spinoffs.

“It’s a phased approach we’re looking at.”

One of the key things Van Pol pointed out was this concept has proven to be much more feasible than industry believed. It’s research directly correlated to real experiments. It’s not a nice-to-see lab bench experiment, but a real-world situation. They have to be able to manufacture it, and it has to work.

But they still have to be cautious, and take it step-by-step. “If you destroy a reservoir, you’re five years back in what you can do.

“It’s a new approach. We want to be careful to keep this thing going. Let’s not try to change the world tomorrow,” Van Pol concluded.

A4

PIPELINE NEWS January 2013

BRIEFS Aquistore’s wells are drilled, Sask. and Manitoba oil well completions set record Operators completed 454 oil wells in Saskatchewan in October month along with 80 oil wells in Manitoba – a record tally for that month in both provinces.

In Alberta, 588 oil well completions were recorded last month, off from 621 in October 2011 but still the second-highest count on record.

In total, operators completed 1,286 wells across Canada in October for a total of 2.41 million metres.

During the first 10 months of the year, a total of 9,304 wells have been completed for 18.53 million metres of hole. For the Januaryto-October period last year, 13,077 wells and 22.04 million metres were completed.

Excluding experimental wells, only 953 gas wells have been completed in Alberta to the end of October compared to 3,017 a year ago. Alberta operators have completed 3,873 oil wells in the first 10 months of the year versus 4,698 in the comparable period of 2011.

A record 521 oil wells (excluding experimental wells) have been completed in Manitoba in the JanuaryOctober period, up from 374 a year ago.

In Saskatchewan, 2,535 oil wells have been reported as completed over the first 10 months of the year, off from last year’s high of 2,709.

Briefs courtesy Nickle’s Daily Oil Bulletin

now it’s a waiting game

By Brian Zinchuk Estevan, Regina – As of mid-December, the Aquistore project was pretty much wrapped up, and is now awaiting its first carbon dioxide.

Aquistore is a project undertaken by the Reginabased Petroleum Technology Research Centre that is designed to inject anthropogenic carbon dioxide into deep saline aquifers.

The intent is to prove the greenhouse gas can be safely stored, permanently, underground, as a strategy to combat climate change.

The project is located a couple kilometres due west of the Boundary Dam Power Station, which will be the source of its CO2. The $1.2 billion Boundary Dam Unit 3 carbon capture project currently underway will rebuild a unit of the coal-fired power plant and capture nearly all the CO2 it produces when in operation. The CO2 is destined for sale for enhanced oil recovery, but Aquistore provides an alternative CO2 disposal option and research opportunity.

Two wells were drilled over the course of the summer and fall. The first, the injection well, was initially the deepest in the province, at 3,396 metres in depth. The second, the observation well, topped that, at 3,400 metres. The targeted

formations are the deepest in Saskatchewan, right above the Precambrian basement of bedrock.

leading to remedial steps being taken into mid-December, according to Dr. Malcolm Wilson, CEO of the PTRC.

deed, have been useful in cement remediation work.

Initially the PTRC had planned to truck in carbon dioxide for a test run, but that was changed to a water-

The Aquistore injecƟon well is in the foreground, while the observaƟon well can be seen in the background.

Photo by Brian Zinchuk

Drilling operations were completed in November, and the Nabors Drilling triple rig moved off. However, there were some complications with the cement job on the upper part of the observation well,

Correction

In our November 2012 edition we ran a photo on Page B26 with a story on Flexpipe Systems at the Lloydminster Heavy Oil Show in September that incorrectly named one of the persons in the photo. The correct names for the people in the photo (l-r) are Jason Mapletoft and Clint Booth.

The cement on the lower part of the well is fine.

“We’re more or less finished,” he said on Dec. 11.

“There’s a little bit of work on the observation well,” Wilson stated, noting final drill out and the running of the cement bond logs were expected to be done in mid-December.

The observation well has a total of six sensor lines installed, going to the bottom of the well. One was damaged during installation, but the other five survived, and in-

injection instead, and mathematically modelled.

“That’s been done. We’re pretty comfortable with the numbers. They were by and large conservative numbers.”

There’s not a lot of activity expected for the better part of a year now, waiting for the Boundary Dam project to near completion.

“I’d like to do a water production test. Whether we can do one or not remains to be seen,” Wilson said. He would also like to do an early CO2 test if the opportunity arises.

The Boundary Dam project is not expected to be completed until early 2014. But there will be several months of commissioning shakedowns over the winter of 2013-14 and the following spring. Aquistore will be used to dispose of CO2 before the CO2 sales pipeline goes into operation.

“As long as they’re producing CO2, we’ll accept it,” he said.

Some time between now and then the pipeline between the power plant and the injection well will also need to be built.

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PIPELINE NEWS January 2013

McMillan foresees lower price gap with Keystone XL

By Geoff Lee Pipeline News Regina – Arguably, the most important event of 2012 for Saskatchewan’s oil and gas industry at the government level took place when Premier Brad Wall shuffled his cabinet on May 25.

The change created a new Ministry of the Economy headed by former Energy and Resources minister Bill Boyd.

The change elevated Lloydminster MLA Tim McMillan to the position of minister responsible for Energy and Resources, Tourism Saskatchewan and Trade within the Economy Ministry.

McMillan is also the minister responsible for SaskEnergy.

With 2012 drawing to an eventful close for the Saskatchewan’s energy and resources sector, we asked Minster McMillan to look back on some of the challenges of the oil and gas industry since he took office and what to expect in 2013.

PN: What are a couple of energy highlights for you in 2012 since being named minister responsible for Energy and Resources in a May cabinet shuffle?

McMillan: If I had to pick one or two things, one would likely be when I was down in Weyburn – Panther (Drilling Corp.) was getting their most recent rig ready to go out in the field for the first time to drill its first well.

They trusted the minister of Energy and Resources to even run the controls on it a little bit. It was pretty gutsy of them to turn me loose for a short stint. That was fun.

I think being the minster of Energy and Resources and being asked to speak at the Lloydminster Heavy Oil Show is another highlight.

I think it’s more personal to me since I grew up in Lloydminster and worked in the industry in Lloydminster and attended the show. Now to be asked to speak there was a true highlight for me too.

PN: What do you think is your most notable accomplishment as the new minister Responsible for Energy and Resources?

McMillan: There is lots of day to day work that is the biggest accomplishment even though there isn’t necessarily a sign post that says “You’ve Made It,” but it is work that’s ongoing and I think is very important.

That work would be the challenges around access to pipelines or export capacity. That work is certainly ongoing, but there is a political angle on some of it.

It is meeting and speaking with the people who are proposing projects and talking to the rail companies that have stepped up and are now taking a substantial amount of oil and understanding their plans and projects.

There is a role for the government and the minster to be involved in some of it, and some of it there isn’t. That work is ongoing, but it is very important to our industry.

PN: Are you surprised how much oil is being shipped by rail?

McMillan: I have met with companies that are currently

Tim McMillan, minister responsible for Energy and Resources, who is also the MLA for Lloydminster, was delighted to speak at the 2012 Lloydminster Heavy Oil Show in September. McMillan grew up in the Lloydminster area where he once worked in the oil industry. He expects pipeline capacity to be a key issue in 2013.

doing this – some that are doing it right out of the Lloydminster area. They felt that this was an option in the past. They thought they could do it economically and have some advantages on speed and be able to hit certain markets in a timely manner.

In the past, the differential wasn’t there to kind of get going.

Now that they have been able to put in some serious infrastructure, when capacity on the pipeline side comes back, they think they will be able to offer a very competitive service and help industry reach new levels that they wouldn’t otherwise.

PN: What do you think will be the major challenge for the oil and gas industry in 2013?

McMillan: Probably the same as this year, that the price of gas is following the technology change which has accessed new gas that people throughout North America have known about for a long time. The price is probably going to be the biggest challenge on the gas side.

On the oil side, pipeline capacity would have to be the obvious one. When we see the price of Brent Crude priced $20 premium over West Texas Intermediate, and then what we are able to ship it for out of Saskatchewan at substantial discount to that, it makes the economics more difficult in our province. ɸ Page A8

A5

BRIEFS Do All offer expires Do All Industries Ltd. announced Nov. 23 that its offer to purchase all of the issued and outstanding common shares of Hyduke Energy Services Inc., as varied and extended pursuant to a notice of variation and extension dated Nov. 12 expired at 4:00 p.m. (Calgary time) on Nov. 23, 2012.

The offer was conditional upon, among other things, a minimum tender condition, which was not met.

The company will not take up any shares deposited under the offer and will return any shares deposited under the offer to the depositing Hyduke shareholders.

Do All is a private company based out of Estevan, Saskatchewan, which provides integrated products and services for the oil and gas industry.

Harvest adds $30 million Harvest Operations Corp. has raised its 2012 upstream capital budget to $441 million from $411 million, excluding oilsands spending.

The additional $30 million will be spent on drilling programs in the fourth quarter to ensure completion and tie-in of wells before 2013 spring breakup, the company said.

The extra money will advance winter drilling programs in Harvest's Hay River, Red Earth, Ante Creek, Deep Basin and southeast Saskatchewan areas, Les Hogan, the company's new chief operating officer, told a recent third quarter earnings conference call.

Briefs courtesy Nickle’s Daily Oil Bulletin

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A6

PIPELINE NEWS January 2013

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 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 • Carlyle 1.306.453.2525 Alison Dunning 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 • Saskatoon - Josh Schaefer 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.

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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.

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Expect the upheaval to continue When Pipeline News became a province-wide paper in the spring of 2008, we knew we were onto something with this Bakken development that was just beginning to catch fire. Now that fire has ignited change in not only the oil and gas industry, but in the world order itself.

With the Bakken, North Dakota is well on its way to achieving a million barrels per day production of light, sweet crude. Nipping on its heels is the intense development of Texas’ Eagle Ford shale.

The horizontal multi-stage frac well design which allowed the Bakken and Eagle Ford to proliferate has put the dynamics of the natural gas business on its head. Alberta producers are shutting in production and TransCanada’s mainline system is running half empty, to the point where they are looking to ship oil in their under-utilized pipelines. As a result, Eastern Canada is now seriously looking at using Western Canadian oil instead of importing crude from the Middle East as a result.

Pipelines have always been political, going back to the Diefenbaker days. But now they are not only political, but in some ways seemingly impossible. Will Keystone XL ever be built? Maybe, maybe not. The opposition to Northern Gateway has B.C.’s premier doing her best to play Mafia wiseguy, shaking down her neighbour to the east.

Enbridge, king of the oil pipeline business, is now shipping crude-by-rail. In late November, they announced the formation of their own rail company to ship Bakken Crude to Philadelphia.

Crude-by-rail is now being considered for exporting oil via Churchill, on Hudson Bay, or Valdez, Alaska. Some are actually considering building an

oil-shipping rail line from Northern Alberta all the way to Valdez, if you can believe it (there are more than a few mountain ranges in between).

To top it all off, the International Energy Agency published a whopper, saying the U.S. could be outproducing Saudi Arabia by 2020, and a net exporter by 2030.

If you took a time machine back five years and told an oilman any of these points, he’s slap you upside the head and say, “Wake up, you’re dreaming!”

Yes, this is a dream world we are living in. Wells are now horizontal, not vertical. Producers are looking to rail first, pipeline second, to ship their crude. Alberta gas is nearly worthless. Saskatchewan drilled only 9 gas wells in the first nine months of the year.

If these are the changes we’ve seen in the last five years, what sort of changes can we expect in 2013?

Crude-by-rail is going to continue to rise in prominence. The ability to put a rail car full of crude at a siding of a refinery anywhere on the continent will shake up the refining and pipelining industries to the core.

The U.S., now realizing it really doesn’t need all that Middle Eastern oil, will start to do what its natural tendencies have always been – pull back to its own shores and get the heck out of there. Congress is going to come to the realization fighting wars for oil makes no sense when you have enough oil at home to keep the SUVs full.

Canadian refineries are going to get thirsty for Canadian oil, cheaper than the Brent prices they are paying.

That will lead to more energy security in our nation, and fundamentally change the dynamics of our industry.

With so much change in the air, 2013 is going to be a wild one.

PIPELINE NEWS January 2013

From the Top of The Pile

A7

OPINION

By Brian Zinchuk

Using crude-bt-rail to beat the differential As a kid growing up on the farm, I listened to the daily grain price reports on GX94. All conversation would stop as prices were listed per bushel and tonne of the precious commodity we were producing. At times, hauling grain a day or two earlier had a noticeable impact on the bottom line. And when things weren’t going so hot, one could always blame the elevators or railways.

Those once-accursed railways are now the salvation for the Western Canadian oilpatch.

Consider these little tidbits from Reuters on Nov. 15. First, “Canadian cash crude oil prices weakened on Wednesday after TransCanada Corporation declared force majeure on some shipments scheduled for its 590,000 bbl.-per-day Keystone pipeline following weekend power problems that reduced flows.

“Western Canada Select heavy blend last traded at $30 per bbl under West Texas Intermediate, compared with a settlement price on Tuesday of $28.50 below the benchmark, according to Shorcan Energy Brokers.”

Then the same day we saw, “Enbridge Inc. said on Thursday it had rationed more oil pipeline capacity on its huge Canada-to-United States system, a rare mid-month move that sent prices for Canadian heavy crude tumbling.”

At the tail end of the article it noted, “Western Canada Select, a widely quoted heavy crude grade,

sank as much as $5 a bbl. on Thursday as word of the apportionment spread through the cash market.

WCS for December delivery last sold for $32.50 a bbl. under benchmark West Texas Intermediate, a $2.50 deeper discount than on Wednesday, according to Shorcan Energy Brokers.”

Given that the NYMEX-WTI December price listed as of Nov. 16 was $85.45, shaving a differential on that day of $32.25 off that is a huge haircut. That’s leaving 38 per cent of your potential money on the table. Generally speaking, money off the top is the profit part of the equation.

No wonder companies like Crescent Point Energy Corp. are ramping up their crude-by-rail facilities. In March, I wrote about their Stoughton facility, then just getting its legs under it. I pointed out that one unit train a day would be relatively close to their entire oil production in southeast Saskatchewan.

Therefore I felt a little smug come November when they announced that the Stoughton facility would be increased in capacity to 40,000 bpd, nearly all of their oil production capacity in southeast Saskatchewan based on March’s numbers of 46,000 to 47,000 bpd. A full unit train of 80 cars carrying 600 bbl. each has a capacity of 48,000. (Tankers usually carry 600 to 650 bbl. a piece.)

The bigger question is, why haven’t we seen an even greater shift? Going back to my farm days as a kid, you really didn’t have much choice in deliv-

ering your product.

There might be two or three elevators in town, or you could drive your 3-ton seven miles down the road for another option, but the result was largely the same. You took what you got, or at least that’s how it seemed. It was all shipped on the same railroad, and went to the same ports – Vancouver or Thunder Bay. Conversely, those same rails now allow oil producers to entirely circumvent their restricted markets before. The pipeline network only goes so many places. But the rail network goes almost everywhere. You can ship to the Gulf Coast, or the Irving Refinery in New Brunswick. If New Jersey, which is currently paying the $109 Brent price will give you a better deal, you’re going to do a lot better than the price you’re getting right now. It may cost more to ship by rail than pipeline, but the return is well worth it.

Dean Weinrauf, director of southern operations for Torq Transloading, told me “We keep having a record month, every month.”

Their company has crude-by-rail transloading facilities throughout Western Canada, and is in the process of setting up a few more. Given a $32.50 differential, I anticipate their phones are going to ring off the hook.

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

Lee Side of Lloyd

By Geoff Lee

Will energy forecast scare us to act?

In 2013, energy infrastructure investment needs to jump to the top of the list as a national priority.

Urgency is needed as the International Energy Agency predicts that the U.S. will overtake Saudi Arabia and Russia in oil production by 2015.

Without new pipelines and processing facilities in place to access new markets in Asia, the growth of Canada’s oilsands could be stymied by 2016 if North American supply exceeds demand.

In the IEA’s 2012 edition of the World Energy Outlook, U.S. production of oil is expected to jump from its estimated 2012 year-end level of 6.2 million barrels of oil per day up to 11.1 mm bpd by 2020.

The report also predicts the U.S. will be a net exporter of oil by 2030, and nearly energy self-sufficient by 2035.

The incredible increase in light oil production south of the border is largely attributed to the success of hydraulic fracking technology which is also unlocking huge reserves of shale gas.

The end result is that the U.S. could achieve its elusive goal of energy security and will not need large volumes of imports to sustain its economy.

What this means for Canada of course, is that

the U.S. demand for Canadian oil won’t be as strong as previously anticipated, even with the construction of the Keystone XL pipeline.

The IEA also expects that much-improved vehicle fuel efficiency will slowly reduce U.S. oil demand.

The Obama administration has adopted rules raising fuel efficiency for new cars to 54.5 miles per gallon by 2025 – roughly double the present standard.

The spectre of rising oil production and shrinking demand should dramatically reduce U.S. imports, says the IEA. The IEA expects U.S. net imports to fall from 9.5 million bpd in 2011 to only 3.4 million barrels a day by 2035.

The IEA also predicts renewable energy will become the world’s second-largest source of power generation by 2015, and close in on coal as the primary source by 2035.

If all this holds true, then Canada’s economy is in for a major economic jolt unless the government and private sector act together now to open new gateways to markets other than the U.S. There is no doubt Canada’s economic fortunes are tied to the energy sector.

On the bright side, the proposed Keystone XL pipeline, the Trans Mountain pipeline and the Northern Gateway pipeline could all be in the con-

struction or operational stages in just a few years, enabling new markets to be reached.

In the short term, the construction of the Keystone XL will help to ease the U.S. supply bottleneck of oil at Cushing, Oklahoma and tighten the price differential between Brent and West Texas Intermediate crude.

Earlier in 2012, Enbridge Inc. and Enterprise Products Partners LP reversed the flow of their Seaway pipeline to ship 400,000 bpd day from Cushing, where WTI is priced, to refineries at the U.S. Gulf Coast.

Building additional refineries in Canada would also help to eliminate oil price differentials and allow producers to sell more value-added petroleum products if the world becomes awash in oil.

The IEA report also references the need for environmental issues pertaining to water, energy efficiency and carbon emissions to be addressed in the oilsands for that industry to grow.

The start of a new year brings the IEA forecast closer to a reality check that can’t be ignored.

The federal government’s is projecting a deficit of $26 billion for the current fiscal year that could be a lot higher without Canada’s energy exports.

The time for energy infrastructure development is now before we can’t afford to export.

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

A8

PIPELINE NEWS January 2013

Sask. oilsands prospects looking up ɺ Page A5 There are a lot of solutions on the horizon and some in the immediate term – as we spoke of in rail. There will be a lot of work done in the next year as well to find efficiencies and move projects forward.

PN: The Canadian Association of Oilwell Drilling Contractors forecasts a six per cent drop in the number of wells to be drilled in 2013 in Canada. Will Saskatchewan buck the trend?

McMillan: I think in Saskatchewan we have a very competitive environment for investing and for drilling wells. The technologies that have opened up the Bakken, the Shaunavon, and now the Viking, continue to drive investment and create more opportunity for industry to drill wells.

I think that drilling number may be accurate, depending on what happens to the price of oil, but Saskatchewan is very well positioned to see another good year. Six per cent off would still leave us in the top four or five or six years ever in Saskatchewan for oil activity.

PN: Do you see the weather being a challenge to drilling in 2013?

The weather has been a challenge in other years. We live in a big province and it could be a challenge again. From a government point of view, when that sort of thing has happened, we’ve provided flexibility to allow industry to get the work done that it needed to if the timing didn’t quite work out.

It’s the things, I think, that keep Saskatchewan as a place where industry wants to do work.

PN: Land sales are considerably lower this

year than 2011 and 2010. Do you see that trend continuing into 2013 and is it a cause for concern?

McMillan: If the price of oil stays roughly where it is today, I think we will have a very similar year next year to what we’ve had this year. We saw a substantial rush on land in 2008 and those companies have five years to bring their properties into production or the land reverts back to the Crown to be available for subsequent land sales.

That won’t be happening this year, but it will next year. I think with all those factors taken into account, we expect a similar year in land sales this coming year to 2012.

PN: What can Saskatchewan can do to facilitate the development of needed infrastructure?

McMillan: We have been very supportive of all the major pipeline proposals and projects going forward. Where we have had an opportunity to push the political leaders on them, we have taken it.

As an immediate solution, our rail companies are fully engaged and they are ramping up their capacity substantially. That’s very important in the short term as well.

PN: How will Saskatchewan benefit the most if the Keystone XL line is constructed through the province?

McMillan: The true benefit is driving down the differential of what we are getting for our oil at the wellhead compared to West Texas Intermediate and compared to Brent. The long-term benefit is that this makes our industry more competitive.

The immediate impact will be the amount of work that takes place in putting in 250 kilometres of pipeline. There’s a lot of work and employment –

hotels are full, restaurants are full so that’s important – the taxation that goes along with a project that big is good for the government.

PN: Cenovus purchased Oil Sands Quest’s assets for $10 million in 2012, including 59,000 hectares of leases in Alberta and Saskatchewan.

Will other companies begin to explore Saskatchewan’s oilsands starting in 2013?

McMillan: We see that there are oilsands properties on the Saskatchewan side of the border that are on our December land sale. That, I think, is a good sign.

We saw similar properties come on earlier in the year, but in that case either there were no bids after they were asked to be put on, or there were bids that were not at a level considered to be acceptable to Energy and Resources. So they are up there again and we will what kind of activity that brings.

We think we’ve got a great resource there. As time and technology change, we expect there will be development. Whether it’s this coming year or not, I couldn’t predict. That’s more industry driven.

There is 27,000 square kilometres of opportunity on the Saskatchewan side of the border in what would be considered oilsands type properties.

There’s a big resource.

At some point, I suspect the interest will materialize into actual projects going forward.

The government continues to work very hard to enable that to happen – going on recruiting missions to enable expediated immigration processes and right here at home to make sure we are investing in appropriate training facilities, ramping up a number of skilled trades positions.

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PIPELINE NEWS January 2013

A9

Hot sales for Gritâ&#x20AC;&#x2122;s cold weather line Â&#x201E; By GeoďŹ&#x20AC; Lee

Wayne King, president of Grit Industries Inc., shows oÄŤ a prototype light oil heater being put into producĆ&#x;on as part of the companyâ&#x20AC;&#x2122;s line of cold weather technology products. The indirect Ĺ&#x2021;uid heaters are currently being sold in Saskatchewan, North Dakota and Montana. In the far right background is a prototype of a new heat exchanger for a verĆ&#x;cal heater treater. These prototypes were photographed at Gritâ&#x20AC;&#x2122;s new head oĸce and welding shop near the Lloydminster municipal airport.

North Battleford â&#x20AC;&#x201C; Necessity is the mother of invention. That philosophy is the driving force behind the success of Grit Industries Inc. and the mindset of company president and founder Wayne King.

The company relocated its manufacturing base to North Battleford this fall to focus on its booming cold weather technology product line of natural gas line heaters and indirect ďŹ&#x201A;uid light oil heaters that are inspired by King.

Both products are derived from heat-driven loop technology that King began to develop in 1999 to heat heavy oil tanks using their own vented methane instead of a ďŹ re tube. â&#x20AC;&#x153;This is a technology that I have been developing for 10 years,â&#x20AC;? said King. â&#x20AC;&#x153;The diďŹ&#x20AC;erence between this technology and the previous technology, is that the previous technology would use a ďŹ re tube that has a very poor eďŹ&#x192;ciency, and to be frank, a very poor safety rating. â&#x20AC;&#x153;A ďŹ re tube maybe runs at 45 to 50 per cent thermal eďŹ&#x192;ciency. This new device that we have runs at 80 per cent thermal eďŹ&#x192;ciency. â&#x20AC;&#x153;A ďŹ re tube has a high ďŹ&#x201A;ux rate, meaning the skin temperature is about 1,200 F. The skin temperature on this device is 200 F. ɸ Page A10

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PIPELINE NEWS January 2013

Ounces of gas pressure instead of pounds Éş Page A9 â&#x20AC;&#x153;So therefore, what takes place with a ďŹ re tube is that because of the high temperature, you are actually ďŹ&#x201A;ashing the water portion of the crude oil to steam which leaves a salt and silt deposit on the ďŹ re tube. â&#x20AC;&#x153;Our technology, because it has a lower skin temperature, it does not create that salt deposit and the heat exchanger remains clean and unobstructed for that heat transfer,â&#x20AC;? King said.

The indirect ďŹ&#x201A;uid heater is designed to heat multi-tank or vessel applications with signiďŹ cant cost savings in energy consumption and eďŹ&#x192;ciencies.

The unit can easily be retroďŹ tted to existing ďŹ re tube throats and has no moving parts, and does not require electricity to operate.

When used to heat light oil tanks, the technology upgrades oil to pipeline speciďŹ cations safely with indirect steam heating technology.

Kingâ&#x20AC;&#x2122;s original idea, however, was to ďŹ nd a way to heat a heavy oil tank with just ounces of gas pressure versus a ďŹ re tube that consumes pounds of gas pressure. â&#x20AC;&#x153;I knew that my barbecue produced heat using 2 ounces of gas pressure, so thatâ&#x20AC;&#x2122;s what the challenge was to come with a heating system that consumed 2 ounces of gas pressure,â&#x20AC;? said King.

Because the heating units Grit developed were more expensive than a ďŹ re tube, industry chose not to use the technology for the heating of heavy oil on a wide commercial scale. â&#x20AC;&#x153;When we discovered the heating of natural gas was very successful using that same technology, it was one of those â&#x20AC;&#x2DC;Eureka momentsâ&#x20AC;&#x2122; in product development,â&#x20AC;? said King. â&#x20AC;&#x153;In 2003, we partnered with SaskEnergy and we developed the natural gas heating systems that are around North America today. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s simple, itâ&#x20AC;&#x2122;s very functional, itâ&#x20AC;&#x2122;s safe and itâ&#x20AC;&#x2122;s code compliant. Thatâ&#x20AC;&#x2122;s where we are today.â&#x20AC;?

Natural gas needs to be heated when pressure is reduced from gas transmission pressure to distribution pressure at regulation stations due to the Joule-Thompson eďŹ&#x20AC;ect. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s called the refrigeration eďŹ&#x20AC;ect.

Itâ&#x20AC;&#x2122;s the pressure drop that creates cold,â&#x20AC;? said King. â&#x20AC;&#x153;There is a probe in the gas line after the cut is made on the low pressure side. Itâ&#x20AC;&#x2122;s important to follow the ďŹ&#x201A;uctuating load and put just enough heat into the load so the regulators donâ&#x20AC;&#x2122;t freeze. â&#x20AC;&#x153;What our technology does is to follow the load, whereas the old technology would simply heat the load based on the peak load of the day. â&#x20AC;&#x153;Our unit keeps a constant temperature and puts in just enough

Brandan Carnell keeps his eye on some gauges while he test ÄŽres this 770,000 BTU dry line heater in the cold weather manufacturing division of Grit Industries in North Battleford.

energy to maintain the desired temperature,â&#x20AC;? King said.

Grit Industriesâ&#x20AC;&#x2122; leading cold weather natural gas heaters have caught on with industry with their improved thermal and combustion eďŹ&#x192;ciencies and fuel savings.

The units are silent to operate and are very safe and reliable as well.

The company has sold about 1,500 natural gas line heaters across Canada and the U.S. ranging from 70,000 BTU to 750,000 BTU output.

The company is also ďŹ eld testing a 4.5 million BTU natural gas line

heater for natural gas distribution in England for National Grid, an international electrical and gas supplier to Great Britain and Northeast United States. â&#x20AC;&#x153;The technology we are developing for England, will at some point in time, be introduced in North America. We are developing the futuristic model into Europe to be proven,â&#x20AC;? said King.

The prototype heater in England meets the European CE standard for safety and emits only seven parts per million of NOx emissions. ɸ Page A11

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PIPELINE NEWS January 2013 Éş Page A10 â&#x20AC;&#x153;Currently, we are developing a three million and a ďŹ ve million BTU unit and combinations of those units will put us in the multiples of ďŹ ve, 10 and 20 million BTUs,â&#x20AC;? said King. â&#x20AC;&#x153;The development of technology never stops. Grit Industries is a manufacturer that develops new technology. â&#x20AC;&#x153;We went from the heating of heavy crude oil to the heating of natural gas for natural gas utilities. â&#x20AC;&#x153;So the technology has matured and we have adapted it to heat light oil for processing purposes. â&#x20AC;&#x153;As you develop new technology, part of that product development is making sure that we comply with local jurisdictional codes and standards,â&#x20AC;? he said.

King said Saskatchewan Energy and Mines initially wouldnâ&#x20AC;&#x2122;t allow Grit to install an indirect ďŹ&#x201A;uid heater in a light oil tank citing, it was against code to heat light oil in a tank for treating purposes. â&#x20AC;&#x153;The code noted you can only add heat to a tank to allow it to be transported,â&#x20AC;? he said. â&#x20AC;&#x153;I said this is silliness. We are increasing the cost of the industry; we are increasing the number of loads that are trucked down the road and we are increasing road repairs and the consumption of fuel all for unnecessary trucking. â&#x20AC;&#x153;They talked about it and they came and looked at our devices.

They saw they were very safe, much safer than a ďŹ re tube. They said â&#x20AC;&#x2DC;okay we agree. We will allow you to put this system in

but only one.â&#x20AC;&#x2122; â&#x20AC;&#x153;That was two years ago. We found an oil company that was interested. They installed the technology into their production tank for treating purposes and it worked. â&#x20AC;&#x153;As a matter of fact, on that ďŹ rst location, there was a 60 day pay out of the capital cost of the equipment. â&#x20AC;&#x153;Then we applied for another licence and they granted it. By the time we got to about 10, Energy and Mines said they would give us a blanket approval for the technology,â&#x20AC;? King said.

Since then, the company has installed over 60 indirect ďŹ&#x201A;uid heaters in the Estevan, Elrose and Kindersley area. â&#x20AC;&#x153;The province of Saskatchewan is light years ahead of other jurisdictions. The province has recognized the safety of these devices,â&#x20AC;? said King.

The company recently got the go ahead to sell them into North Dakota market for treating purposes, with Manitoba and Alberta to follow. â&#x20AC;&#x153;We are not only able to heat light oil in a tank we are now just registering a new heat exchanger to replace the usage of a ďŹ re tube in vertical heater treaters

and pressure vessels,â&#x20AC;? said King. â&#x20AC;&#x153;There are lots of ideas and thereâ&#x20AC;&#x2122;s more to come.â&#x20AC;?

SaskEnergy is also well on the path to replacing its water bath heaters with Grit Industriesâ&#x20AC;&#x2122; natural gas line heaters fuel savings of up 50 to 70 per cent in test units. â&#x20AC;&#x153;SaskEnergy must be commended for their forward thinking and planning,â&#x20AC;? said King who noted cold weather technology continues to sell even with the low prices of natural gas. â&#x20AC;&#x153;When natural gas was at $7 a gigajoule â&#x20AC;&#x201C; now it is $2 â&#x20AC;&#x201C; it took the economics away somewhat, but industry has still been on side. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s not just the natural gas fuel savings industry is interested in.

They are interested in emissions reduction, in safety beneďŹ ts and the quiet operation of the heaters. â&#x20AC;&#x153;Our technology is silent.â&#x20AC;?

SaskEngery, Grit Industriesâ&#x20AC;&#x2122; alliance partner, is also using cold weather technology for the pre-heating of natural gas at two of SaskPowerâ&#x20AC;&#x2122;s gas turbine stations in Saskatchewan. â&#x20AC;&#x153;The industry has shown that natural gas

has better combustion at a certain temperature.

They pre-heat the gas before the gas goes into the gas ďŹ red turbine.

Our technology works well there,â&#x20AC;? said King.

Other potential markets for cold weather technology are U.S. hospitals and utilities that are retroďŹ tting oil burning furnaces to natural gas furnaces using high pressure gas captured from shale gas fracking and trucked to location.

A11

Wayne King, president of Grit Industries Inc., added this Panasonic MIG roboĆ&#x;c welder to his new manufacturing shop in North BaĆŠleford. The robot is currently welding ÄŽre tube throats for producĆ&#x;on tanks.

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PIPELINE NEWS January 2013

PIPELINE NEWS January 2013

A13

Les Harper, owner and president of EllioĆŠ Petroleum, has the name of his best selling cold weather AFX â&#x20AC;&#x153;oil anĆ&#x;freezeâ&#x20AC;? for engine oil and hydraulic oil on the side of his truck parked at the Maidstone shop.

Harper is also president of the Lloydminster Rotary Club and sits on the board of Habitat for Humanity in Lloydminster.

Take cold AFX for â&#x20AC;&#x2DC;hydraulic Ă uâ&#x20AC;&#x2122; Â&#x201E; Story and photos by GeoďŹ&#x20AC; Lee Maidstone â&#x20AC;&#x201C; Elliott Petroleum in Maidstone manufactures and distributes an oilďŹ eld lubricant version of Cold-FX to remedy the ill eďŹ&#x20AC;ects of cold winter weather on engine and hydraulic oils.

The engine health product is called AFX and it is marketed as an oil antifreeze that more and more oilďŹ eld companies are turning to, to keep their hydraulic equipment from freezing up and breaking down in cold temperatures. â&#x20AC;&#x153;When you are dealing with cold weather and the oil is so stiďŹ&#x20AC; and doesnâ&#x20AC;&#x2122;t ďŹ&#x201A;ow properly, you can blow pumps apart, blow hoses oďŹ&#x20AC; â&#x20AC;&#x201C; seals go oďŹ&#x20AC; on pumps,â&#x20AC;? said Les Harper, president and owner of Elliott Petroleum. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s very hard to keep equipment running in cold weather. â&#x20AC;&#x153;The biggest problem is something called pour point, the temperature that oil stops ďŹ&#x201A;owing. In other words, it just literally becomes a glob of hydrocarbons. â&#x20AC;&#x153;The pour point is the critical thing with cold weather operations.

You want the oil to keep moving. â&#x20AC;&#x153;When you put AFX into hydraulic oils, the pour point is reduced.

You will maintain the viscosity, but the pour point will be reduced to a point where it can operate in lower temperatures,â&#x20AC;? Harper said.

AFX can be added to existing oils up to a 30 per cent mixture. AFX allows oils to circulate faster at extreme

cold temperatures while maintaining the same degree of lubrication at operating temperatures.

A dose of AFX will keep the hydraulic systems of equipment such vacuum trucks, power tongs, loaders, tractors and cranes running in temperatures as low as -60 C. â&#x20AC;&#x153;It will save a company in downtime and just general equipment maintenance,â&#x20AC;? said Harper whose phone starts ringing when the temperature plunges as it did in the ďŹ rst week of December. â&#x20AC;&#x153;I had a fellow last night who called. He had blown hydraulic lines on a service rig and was looking for an answer to his situation. â&#x20AC;&#x153;When it is cold, metal is stiďŹ&#x20AC; and that is when it becomes fragile. Nothing is ďŹ tting correctly any more. If the AFX can reduce some of that stress on hydraulic pumps, it can save you a lot of money. â&#x20AC;&#x153;It doesnâ&#x20AC;&#x2122;t break down. One application pretty much takes care of your hydraulic system unless you have a spill or need to top up. Generally speaking, itâ&#x20AC;&#x2122;s a one shot deal. That makes it cost eďŹ&#x20AC;ective.â&#x20AC;?

AFX also contains special additives that are particularly eďŹ&#x20AC;ective in assisting the control of engine sludge and varnish at low operating temperatures. â&#x20AC;&#x153;AFX can be used in engine oil or hydraulics, but we see a lot more use in hydraulics than anywhere else,â&#x20AC;? said Harper. ɸ Page A14

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PIPELINE NEWS January 2013

Les Harper bought EllioĆŠ Petroleum in 2006 and is seeing steady organic growth year aĹ&#x152;er year thanks to word of mouth endorsements for his unique blends of oil and lubricants for cold weather hydraulic equipment.

Additive helps in cold Éş Page A13 â&#x20AC;&#x153;Anything that has a hydraulic lube in it â&#x20AC;&#x201C; AFX works very well. It shines in equipment thatâ&#x20AC;&#x2122;s been used outside â&#x20AC;&#x201C; tractors, loaders, vacuum trucks â&#x20AC;&#x201C; they all do very well with AFX.â&#x20AC;?

Elliott Petroleum makes a variety of custom engine oil, gear oil, hydraulic oil, summer oil and cold weather lubricants at the Maidstone shop. This includes a popular semi-synthetic oil for pumpjack engines. â&#x20AC;&#x153;It is exceptional for its service interval,â&#x20AC;? said Harper. â&#x20AC;&#x153;Some of our client companies literally extend the service life of that oil to twice they would with other oil. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s a very popular product that outlasts some of the components on the engine. Some change it out for 0W40 in winter operation and some just use it year round. Itâ&#x20AC;&#x2122;s exceptional and itâ&#x20AC;&#x2122;s got a lot of support.â&#x20AC;?

Elliott Petroleumâ&#x20AC;&#x2122;s forte is its ability to custom blend just about any type of oil or lubricant for oilďŹ eld, industrial or agricultural applications in smaller quantities that larger manufacturers wonâ&#x20AC;&#x2122;t touch. â&#x20AC;&#x153;We can do anything with oil. If a customer has a problem and brings it to us, with the work of our chemist, we can make oil that can deal with any problem,â&#x20AC;? said Harper. â&#x20AC;&#x153;We are a custom shop. Itâ&#x20AC;&#x2122;s isnâ&#x20AC;&#x2122;t something that we produce millions of litres of like some of the bigger companies. We can custom blend to customer needs.â&#x20AC;?

Elliott Petroleum is also selling a lot of its cold weather diesel fuel conditioner it calls Dragon Juice, which adds lubricants to new low sulphur diesel fuel. â&#x20AC;&#x153;Sulphur is a great lubricant and if itâ&#x20AC;&#x2122;s not in the fuel, you donâ&#x20AC;&#x2122;t have it,â&#x20AC;? said Harper. â&#x20AC;&#x153;Injection pumps tend to wear out a lot quicker, so weâ&#x20AC;&#x2122;ve added that â&#x20AC;&#x2DC;lubricityâ&#x20AC;&#x2122; component into our fuel conditioner. â&#x20AC;&#x153;It also has a wax dispersant that helps for cold weather operation, so the diesel fuel isnâ&#x20AC;&#x2122;t gelling or thickening up and plugging the ďŹ lters and shutting your system down.â&#x20AC;?

Harper knows a lot about oil and fuel as for 21 years he and his wife owned and operated Little Dipper Holdings Ltd., an oil recycling company in Lloydminster. ɸ Page A15

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PIPELINE NEWS January 2013

Shop manager Bob McFadden uses a forkliŌ to deliver this pallet of heavy duty Global Premium AnƟfreeze 50/50 blend to the warehouse at EllioƩ Petroleum’s manufacturing and distribuƟon base at the Maidstone airport.

EllioƩ Petroleum manager Bob McFadden loads a box of four-litre jugs of Global Premium AnƟfreeze 50/50 Blend into a packing box at the company’s blending and packaging shop in Maidstone.

A15

ɺ Page A14 Little Dipper took used oil collected from sources such as oilfield trucking companies and processed it into a diesel fuel replacement that was sold throughout Alberta and parts of Saskatchewan.

The Harpers sold their company in December 2007 after buying Elliott Petroleum in February 2006 and putting it on a solid footing.

It was founded by Walter Elliott in the 1970s. He sold it to a publicly-traded company that shut it down in 2006 when Harper stepped up and bought it and kept the well known Elliott name.

“When I heard they were going out of business, I was very surprised, and I saw the potential to keep the products going,” said Harper who runs the business from his home office in Lloydminster.

The manufacturing and distributing base is located at the Maidstone airport where old hangars serve as a blending shop and a warehouse for products that are sold by word of mouth.

“We don’t advertise a lot. Those who have used our product talk about it, and in turn, it’s a gradual progressive growth of the company,” said Harper.

“Every year we are growing. We will just extend our markets and our distributorship to keep the product going out the door and keep some nice organic growth happening.

“The market potential is enormous. It’s just a matter of slowly growing it and keeping our customers happy at the same time.”

Harper’s brother-in-law, Bob McFadden, manages the day-to-day operations in Maidstone with help from shop worker Yohanes Afeweki who helps to fill customer orders.

“We are busy. There are not many days when something isn’t going somewhere. Not everything goes out in tanks and big loads. It’s literally a gallon at a time,” said Harper.

“We ship it as small as a four-litre jug.”

One of Elliott Petroleum’s newest cold weather products is a heavy duty Global Premium Antifreeze 50/50 blend that is selling like proverbial hotcakes this winter.

“The global antifreeze is quite unique. Instead of having different antifreezes for different types of equipment, the global antifreeze is good for anything from a small engine to heavy duty trucks and all automotive applications,” said Harper.

It is yellow in colour to blend in with any existing antifreeze and it contains a bittering agent to prevent animals or children from ingesting it.

“We have gone through a lot of our global antifreeze since we’ve introduced it this spring. It’s been a good product for us,” said Harper.

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PIPELINE NEWS January 2013

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A17

Husky to double thermal by 2017 Â&#x201E; By GeoďŹ&#x20AC; Lee Calgary â&#x20AC;&#x201C; Husky Energy Inc. held its own version of a Black Friday sale with a Dec. 4 investor day presentation in Toronto that oďŹ&#x20AC;ered plenty of reasons to buy into the companyâ&#x20AC;&#x2122;s ďŹ veyear growth plans to 2017.

For starters, thermal heavy oil production focused in the Lloydminster area is expected to grow to 55,000 barrels per day by 2017, more than double the 24,000 bpd reported in the second quarter of 2012.

The increased production will result from four thermal projects planned to come on stream, including the 3,500 barrel per day Sandall project which is now under construction.

Husky is targeting an annual compound growth rate for its 2012-2017 planning period of ďŹ ve to eight per cent and is on target to achieve a previous ďŹ ve year growth goal of three to ďŹ ve per cent year over year set in 2010.

Total global production in 2013 is expected to increase to between 310,000 to 330,000 barrels oil equivalent per day over an estimated year end production of 301,000 boepd in 2012. â&#x20AC;&#x153;We have consistently executed against our strategy for nine consecutive quarters,â&#x20AC;? said Husky CEO Asim Ghosh in a Dec. 3 operational update and investment forecast. â&#x20AC;&#x153;This performance is a result of strong delivery and reliability in all

business segments and our focused integration strategy. â&#x20AC;&#x153;Our major growth projects in Asia PaciďŹ c, the oilsands and the Atlantic Region are progressing and continue to meet their milestones. â&#x20AC;&#x153;The rejuvenation of our foundation in heavy oil and Western Canada is also well underway with increased production from heavy oil thermal projects and an emerging focus on oil resource plays.â&#x20AC;?

Huskyâ&#x20AC;&#x2122;s 2013 capital expenditure budget of $4.8 billion is similar to the $4.7 billion program in 2012 with 50 per cent of upstream spending to be directed to the company s growth pillars in the ďŹ ve year plan.

In 2012, Husky allocated approximately $1 billion on upstream capital investments in Western Canada in 2012.

Husky has sanctioned the Rush Lake heavy oil thermal project in the Lloydminster area with an increased production capacity to 10,000 bpd compared to the originally planned 8,000 bpd. First oil is expected in 2015.

The decision to increase the production capacity at Rush Lake is based on the results of single well-pair pilot at Rush Lake that is producing approximately 1,000 bpd of heavy oil.

Another operational highlight of 2012 was the completion of site grading at the 3,500 bpd Sandall thermal development that remains on track for

commissioning in 2014.

The 8,000 bpd Pikes Peak South and 3,000 bpd Paradise Hill thermal projects came online ahead of schedule

in 2012 with production levels approximately 40 per cent higher than their design rates by Dec. 3. ɸ Page A18

The Pikes Peak South thermal project achieved ÄŽrst oil in the second quarter of 2012 thanks in part to these ÄŽeld steam generators. Husky is planning four new thermal projects by 2017 including the 3,500 bpd Sandall project now under construcĆ&#x;on in the Paradise Hill area.

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A18

PIPELINE NEWS January 2013

Pikes Peak South reached 8,000 bpd ɺ Page A17 The Pikes Peak South thermal project achieved first oil in the second quarter and reached its 8,000 bpd design rate within two months with production at approximately 11,000 bpd by December.

The Paradise Hill thermal project achieved first oil in the second quarter of 2012 with production at approximately 4,600 bpd at the beginning of December beyond its 3,000 bpd design capacity.

Also in 2012, production from horizontal wells reached 8,000 bpd.

Thirty-one well pads were added in 2012 and 125 wells were drilled.

Husky also completed its new carbon dioxide capture and liquefaction project at the Lloydminster ethanol plant in 2012.

Carbon dioxide from the plant is captured and used to enhance oil recovery in nearby reservoirs. The innovation provides a double benefit by allowing more oil to be recovered while reducing CO2 emissions.

Husky expects to head into 2013 having drilled more than 260 CHOPS (cold heavy oil production with sand) wells drilled in 2012 and more than 300 recompletions in new zones.

CHOPS production was approximately 53,000 bpd by the investor day in December.

Husky also continues to move

forward with the transformation of its foundation in Western Canada with the focus on six oil resource plays including the Bakken, Viking, Cardium, Lower Shaunavon, Rainbow Muskwa and the Slater River Canol in the Northwest Territories.

At Slater River, applications have been filed to construct an all-season access road to support further development.

Evaluations will continue this winter on two vertical wells drilled during the previous season. Development of the liquids-rich gas Ansell play will continue in 2013 with 17 wells expected to be completed by the end of the 2012.

In addition, initial production tests were conducted on the Kaybob Duvernay play, delivering strong liquids yields.

Meanwhile, the first phase of Husky’s Sunrise Energy project in the Athabasca oilsands achieved its major construction milestones according to plan and remains on schedule for first oil in 2014.

All significant contracts for the $2.7 billion cost estimate of Phase 1, including the central processing facility, have now been converted to lump sum payment.

Over 85 per cent of the project’s costs are now fixed and the project is more than 50 per cent complete.

The planning design and engineering of the next phase of Sunrise

This is a row of pumpjacks at the Pikes Peak Įeld in the Lloydminster region. Husky expects to double its thermal producƟon of heavy oil in the area by 2017.

Photo submiƩed

continues with regulatory approvals in place for up to 200, 000 barrels per day of bitumen production with Husky owning a 50 per cent working interest.

A five-year contract has been awarded for the new-build harsh environment semi-submersible drilling rig, West Mira, to support the Husky’s exploration and development opportunities in the Atlantic Region.

In Atlantic Canada, work continued in 2012 in anticipation of sanction of the South White Rose Extension project with the excavation of a subsea drill centre. First oil is expected in 2014.

In other operational news, Husky has made four new gas discoveries on

the Madura Strait Block. The discoveries are being evaluated for potential tie-in to existing nearby infrastructure.

The Liwan Gas project in the South China Sea remains on schedule for first gas in late 2013/early 2014. The overall project is now approximately 75 per cent complete.

On the downstream front, Husky expanded its storage capacity at Hardisty in 2012 with the completion of a 300,000-barrel storage tank that will improve the company’s ability to take advantage of pricing opportunities.

The spring turnaround at the Lloydminster upgrader paid off with record monthly production in the second quarter of 2012.

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PIPELINE NEWS January 2013

A19

100 year party starts in North Battleford Story and photos by Geoff Lee North Battleford – The city of North Battleford will celebrate its 100th anniversary in 2013 with a fresh outlook based on a diversified economy, and at least one surprising business connection to its past and future.

Grit Industries Inc., which recently relocated its manufacturing base to North Battleford, never would have existed without the Dominion Land Act’s free land offer for homesteaders in 1905 when Saskatchewan became a province.

Wayne King founded the company in the 1980s in Lloydminster, Alberta where his great grandfather A.G. King, from Philadelphia, arrived on horseback via the Canadian Northern Railway from Winnipeg to North Battleford to claim a quarter section of land.

Today, Grit’s new office complex in Lloydminster sits on some of the half section of land his grandfather eventually farmed and is not far where Wayne grew up.

Personal stories like this are bound to be told throughout the year as the city starts its 365 day centennial party on New Year’s Eve with the slogan “The Past is Told. Let the Future Unfold.”

The city has budgeted $150,000 to celebrate its centennial year with seven events including the May 1 birthday party, the date North Battleford became a city in 1913.

“The centennial provides us with an opportunity to showcase what north Battleford has become,” said Mayor Ian Hamilton.

“We certainly celebrate our past, but our eyes are on the future.

“The more interest we generate in North Battleford, the more people are going to recognize what we have to offer. I can’t think of a better place for industry to relocate to. It’s the hub of the northwest. ɸ Page A20

The sweeping is fast and furious at the newly-opened Northland Power Curling Centre. The rink is one of four new recreaƟon and arts faciliƟes in the $50 million Credit Union CUPlex that has become a magnet for growth with the city celebraƟng its 100th anniversary in 2013.

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A20

PIPELINE NEWS January 2013

CUPlex integral to attracting people ɺ Page A19 “We have amenities that are second to none and we lead in a lot of areas,” Hamilton said.

The centennial family day and New Year’s Eve party was scheduled to take place in the newly opened Battlefords Tribal Council field house that is part of a $50 million Credit Union CUPlex development completed in 2012. However, the venue was changed to the Civic Centre, as construction of the field house was delayed.

The development, which is already providing a major economic impact, includes the Battlefords Co-op Aquatic Centre, the Dekker Centre for Performing Arts and the Northern Power Curling Centre.

“It’s huge. I don’t know how we are going to measure that. Already the

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aquatic centre attendance is tenfold,” said Denis Lavertu, director of business development.

“I think that’s going to play an integral role in employment and helping employers sustain their employee levels.”

The CUPlex is also the driving force behind a new tourism organization that was formed to create and market sports events in concert with the new Battlefords Hotel Association.

The nonprofit group from the Town of Battleford and North Battleford has added a destination marketing fee on every room to fund sports tourism as a new industry.

“So it’s more tournaments and more events and more conferences and conventions using those facilities,” said Lavertu.

“The city and the town are working together on a new tourism model.

That’s going to bring a lot of economic impact to the community as well.”

Available year-to-date building permits stood at more than $42 million at the end of October and compare favorably with the $70.5 million for total permits in 2011 that included $50 million for the CUPlex.

“We don’t see it slowing down. A lot of developments are in the works and up and coming,” said Lavertu.

“I think 2013 is going to be another strong year for commercial and industrial development.”

Fittingly during the centennial of the existing hospital, construction is expected to begin in 2013 on a new $100 million Saskatchewan Hospital.

“That’s going to be a major construction project probably over the next couple of years,” said Lavertu.

Construction is also expected begin any day on a new tank manufacturing plant by Leading Manufacturing Group. It will be located on the west side of Battleford.

Allstar Energy Ltd. is also poised to step up its heavy oil drilling exploration in 2013 on Red Pheasant First Nation leases south of the Battlefords.

The entire region is also excited over the long term prospects of a 5,000 to 10,000 barrel per day steam assisted gravity drainage application by Rallyemont Energy Inc. at Prince, which is located 20 kilometres north of the city. ɸ Page A21

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PIPELINE NEWS January 2013

Mrs. Claus, also known as Wendy McGuinty, performed as Santa’s wife during the Xmas Show and Story Time performance Dec. 9 at the new Dekker Centre for Performing Arts in North BaƩleford.

ɺ Page A20 In order to reduce the number of new businesses or industries that are too sensitive to supply and demand fluctuations, economic diversity is a goal.

“Industrial growth for me is the main focus because that’s where we see our sustainable future is in creating more industrial jobs. We want to make sure we are diversified,” said Lavertu.

“We are targeting a number of industries rather that just resource-based ones because of the volatility.

“We want to make sure we have jobs all year round in an industrial area that will take those trades and skilled workers and bring them to our community.

“We want to increase our income levels in the community as well.

“Grit Industries is a perfect fit for that. They are not just oil industry. They are into utilities and are very diversified.

“So trucking and warehousing and things like that – we are targeting diversification rather than just being an oil and gas town,” Lavertu said.

Agriculture was the key industry during North Battleford’s formative years and continues to be an ace in the diversification deck, with the new $12.6 million Canada Feed Technology Research Facility.

Other mega projects such as the completed $250 million Yellowhead Power Station by SaskPower and the nearly completed $750 million North Power project are fuelling a strong demand for new housing – and rising prices.

“Because housing prices have escalated quite a bit in the past number of years, we are starting to see a lot of redevelopment in some of our older neighbourhoods,” said Lavertu.

“We will still have some steady housing projects too.”

By November 2012, there were $17.8 million in permits for 112 condo units, $3.8 million for new detached houses and $900,000 for eight apartment units among other residential construction projects.

“There’s just so much happening. We are getting a lot of development interest downtown which is great. I think over the next six months we’ll see some great investments downtown,” said Lavertu.

The centennial spirit could also bring a forth a buyer for the Maple Leaf Foods plant that will close its doors on March 31.

Fingers are crossed that new employment

A21

opportunities will be available for the 300 hourly employees who will lose their jobs.

“I don’t think there’s a buyer in the wings, so to speak, but the property has been listed with Colliers in Saskatoon, a commercial realtor,” said Mayor Ian Hamilton.

“They are certainly actively seeking buyers and or people with interest in the property.

“I do believe what’s happening in North Battleford is very conducive to peaking interest in our community. I think it’s an opportunity for someone to come in, whether it’s manufacturing or some sort of interest like that.

“We have the interest, we have the population, the amenities, and we have the workforce. We’ve shown that through other ventures like Grit Industries relocating to North Battleford.

“We can’t say enough about them. It’s an innovative company. They are doing some unique and innovative things,” said Hamilton That’s the kind of optimism that’s reflected in a centennial logo with its stylized water tower surrounded by a sunburst effect to reflect the community’s energy and optimism for the city’s next 100 years.

Who knows, maybe some more of that free land will be available in 2013.

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A22

PIPELINE NEWS January 2013

PIPELINE NEWS January 2013

A23

ERCB takes feedback on frack draft Edmonton – Alberta’s Energy Resources Conservation Board (ERCB) is seeking feedback on its draft directive on sub-surface fracking issues related to the oil and gas industry in the province.

The ERCB plans to issue a regulatory directive on fracking based on feedback it receives on proposed requirements for hydraulic fracturing activities.

The draft directive is based on ERCB’s review of the challenges and opportunities related to the use of hydraulic fracking in combination with horizontal drilling in the development of Alberta’s conventional and unconventional oil and gas resources.

Hydraulic fracking refers to the procedure of creating fractures in rocks and rock formations by injecting a mixture of sand and water into the cracks to force underground to open further.

The larger fissures allow more oil and gas to flow out of the formation and into the wellbore, from where it can be extracted.

Fracking throughout North America has raised environmental concerns ranging from possible contamination of groundwater and stress on existing water supplies to issues over the management of wastewater and disclosure of fracking chemicals.

The draft directive on fracking provides clar-

ity on preventing inter-wellbore communication impacts, and ensuring well integrity.

It also sets out requirements for wells completed in shallow zones, which apply to any depths shallower than 100 metres below the base of groundwater protection.

Public feedback on the directive will be accepted until Jan. 18, 2013.

The draft directive will build upon regulations to address potential risks of fracking activities identified by the ERCB review.

Surface impacts related to hydraulic fracturing activity will be addressed in the months to come.

Manitoba's short of breaking land sale record set in 2011

By Richard Macedo (Daily Oil Bulletin) – After a promising start to the year, the Manitoba government's land sale revenue fell precipitously, and the province fell short of breaking its yearly record for land sale revenue, which was set in 2011.

The oil-prone province held its fourth and final land sale of the year in mid-November, taking in $178,515 on 2,384 hectares at an average of $74.88. The November sale in 2011 produced $3.04 million in bonus bids on 5,292.87 hectares at an average of $573.86.

For the full year in 2012, the government was able to attract $11.31 million in bonus

revenue as 19,433.18 hectares were sold at an average price of $581.84. Most of the bonus revenue came from the first sale of the year, which drew $8.02 million.

The annual tally fell short of 2011's watermark of $13.14 million. The province sold 23,090.90 hectares in 2011 at an average of $569.04.

Highlights of the Nov. 14 sale included Newalta Corporation paying the highest price per-hectare for a parcel located in the Waskada area. The firm paid $1,250.31 per hectare and a bonus of $20,005 for the 16-hectare parcel. It included legal subdivision eight of section 30 at 1-25W1.

The land sale bonus high bid was tendered

by Fort Calgary Re-

sources Ltd., which paid $52,055 for a 768-hectare lease. The com-

pany paid an average of $67.78 for sections 28, 29 and 32 at 13-29W1

The next Manitoba sale will be held on Feb. 13, 2013.

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PIPELINE NEWS January 2013

Baker Hughes proves CHOPS chemistry Â&#x201E; By GeoďŹ&#x20AC; Lee Lloydminster â&#x20AC;&#x201C; Cold heavy oil production with sand, or CHOPS, can be tripped up by high concentrations of sand leading to torque issues, equipment wear and high well servicing costs.

Baker Hughes has developed an upstream chemical solution to help lift sand and reduce pump torque in horizontal and vertical CHOPS wells.

Their new WAW3939 sand suspension and torque reduction chemistry was the subject of a presentation at the November luncheon of the Lloydminster Society of Petroleum Engineers at the Days Inn. Speaker Larry Sartori, a continuous improvement technical manager from Baker Hughesâ&#x20AC;&#x2122; chemical service facility in Calgary, said 3939 is a cost-eďŹ&#x20AC;ective solution for sand and torque issues in producing CHOPS wells. â&#x20AC;&#x153;Thatâ&#x20AC;&#x2122;s the name of the game to get the oil out of the ground cost eďŹ&#x20AC;ectively,â&#x20AC;? said Sartori who is a chemical engineer.

â&#x20AC;&#x153;With the price ďŹ&#x201A;uctuations you see in the market â&#x20AC;&#x201C; the heavy oil differential â&#x20AC;&#x201C; if you can do it cheaper and make more oil, it keeps customers and producers producing longer.â&#x20AC;?

WAW3939 is formulated with compounds that are attracted to inorganic solids like silt and sand.

When enough of this material is bound to these solids, they tend to become more buoyant in the heavy oil and are produced out of the tubing rather than accumulate above the pump. â&#x20AC;&#x153;Essentially, it emulsiďŹ es the sand that is produced downhole and brings it up, so it alleviates those concerns,â&#x20AC;? said Sartori. â&#x20AC;&#x153;With regards to torque, there is chemistry involved within the chemistry itself that allows the inside surface of a tubing string to become â&#x20AC;&#x2DC;water wetâ&#x20AC;&#x2122; so it can reduce torque in that well.â&#x20AC;?

Lower torque and sand removal can reduce well servicing costs and the need for well loading, ďŹ&#x201A;ushbys, coil tubing units and service rigs.

There is also less equipment wear on bottom hole pumps and surface hydraulics. â&#x20AC;&#x153;Essentially, it will allow the producer to increase the rpm in the well so they can actually speed up the well, so they can make more production which is the name of the game,â&#x20AC;? said Sartori.

The case history wells that Sartori talked about in the Marwayne, Elk Point and Lashburn areas had annual revenue gains from around $300,000 to $850,000 a year following the 3939 treatment.

In one high workover rate well in the Elk Point area treated with the 3939 chemistry, oil production increased by 1.2 cubes a day while cutting the workover rate from 66 per cent to 26 per cent.

Net revenue increased from $17,140 to $42,590 a month for a $305,400 annual gain.

A Lashburn well with high torque issues that prevented operators from increasing the rpm, yielded a production gain of 8.7 cubes of oil a day with the chemical treatment.

The net revenue on that well jumped to $73,770 a month or $885,200 annually â&#x20AC;&#x153;It is very cost-eďŹ&#x20AC;ective. What weâ&#x20AC;&#x2122;ve found it that for a nominal cost is that they recover those costs pretty quickly. If you pick a candidate well, itâ&#x20AC;&#x2122;s a no brainer,â&#x20AC;? said Sartori. ɸ Page A25

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PIPELINE NEWS January 2013

Lloydminster SPE member Denis Blaquierie, leĹ&#x152;, presents Larry Sartori with a giĹ&#x152; for being the guest speaker at the November luncheon at the Days Inn.

Éş Page A24 â&#x20AC;&#x153;Candidate wells are experiencing high torque, high workover issues â&#x20AC;&#x201C; if you are doing a lot of well loading and a lot of ďŹ&#x201A;ushbys or any rig work at all.â&#x20AC;?

An ideal well for the 3939 treatment has between 15 and 70 per cent water and from one to 35 per cent sand content â&#x20AC;&#x201C; with a minimum 10 per cent water content. â&#x20AC;&#x153;Generally, you

need a suďŹ&#x192;cient amount of water to help with the friction reduction properties of the chemical,â&#x20AC;? said Sartori.

Torque and sand issues can be treated through continuous batch/slug injection methods without the need for overďŹ&#x201A;ush or continuous addition of water. â&#x20AC;&#x153;Ideally, the Cadillac operation is to inject this stuďŹ&#x20AC; continuously down the backside of a

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well, down the annulus through that column of oil, such that it gets to where the problem is, which is at the bottom of the well,â&#x20AC;? said Sartori. â&#x20AC;&#x153;The chemical is weighted so that it will fall through a column of oil on the backside of a well.â&#x20AC;?

Intermittent severe sand production may require batch and continuous applications or the addition of load ďŹ&#x201A;uid (well load). â&#x20AC;&#x153;In horizontals, itâ&#x20AC;&#x2122;s a diďŹ&#x20AC;erent application. You end up having to apply it with load ďŹ&#x201A;uid in order to get it to work properly,â&#x20AC;? said Sartori.

Baker Hughes currently has six chemical application trailers in

its ďŹ&#x201A;eet that will rent for a daily rate beginning Jan. 1. â&#x20AC;&#x153;You will know within a couple of days whether the chemical is going to work or not,â&#x20AC;? said Sartori. â&#x20AC;&#x153;This self-contained unit has chemical tanks, a chemical pump, a controller pump and an injection string â&#x20AC;&#x201C; everything you need to get it into the well.â&#x20AC;?

Baker Hughes launched the WAW3939 in mid2011, but its development dates back to 1971 with the initial version of a torque reduction product, followed by sand suspension chemistries in 1991.

Today, the company has a suite of produc-

A25

tion chemistries ranging from demulsiďŹ ers and water clariďŹ ers to scale inhibitors and ďŹ&#x201A;occulants.

Baker Hughes spent approximately $462 million in research and development in 2011, including including heavy oil chemistries for cyclic steam stimulation, steam-assisted gravity drainage, conventional heavy crudes and other related chemistries.

The company has ďŹ eld oďŹ&#x192;ces and warehouses in 34 locations across Canada.

In Lloydminster, the company plans to consolidate its four locations into a new ofďŹ ce and shop that could be completed by the end of 2013.

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A26

PIPELINE NEWS January 2013

Oil bucks drive Arctic Cat sled sales Story and photos by Geoff Lee Wainwright – Don’s Speed Parts in Wainwright, the 2012 Canadian Arctic Cat Snowmobile Dealer of the Year, got off to a good sales start this season thanks to early winter conditions that are sticking around.

Snow and cold weather boost the demand for parts, sales and service of Arctic Cat sleds, side-bysides, ATVs and Arctic Cat clothing and accessories at the dealership.

Don’s Speed Parts also sells cold weather Honda power equipment, Triton trailers and Suzuki ATVs from its location on Highway 14.

“No question, sales are very good at this time of the year – better than a lot of years when there is no

snow,” said company owner Don Kinghorn on Nov. 28 as a storm front was roaring in.

“We are running behind. I attempt to keep within a week, and we are probably two and a half weeks behind on service. That’s having four mechanics going full time.

“We do a good job with snowmobiles – that’s our big business. Whether it snows or not – a lot of people will go to the mountains.

“It’s steady until spring with sleds. Over the past five or six years, we have probably sold over 300-plus sleds a year.”

Last year when there was little snow on the ground, the dealership sold about 250 sleds including 20 to 30 sleds sold in March to customers in

www.kelro.com

Chyna Wilkins and her dad, Don Kinghorn, who owns Don’s Speeds Part stand at the base of “Mount Oil,” a product display of snowmobile oil.

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the Arctic as their daylight hours lengthen.

“We would probably only sell about 20 per cent locally and the other 80 per cent as in Fort McMurray or Edmonton or the High Arctic – some place other than here,” said Kinghorn.

“I would say 80 to 90 per cent of my business is repeat business. Customers keep coming back.”

Kinghorn has a staff of 16 employees including daughter, Chyna Wilkins, who manages the store and his other daughter, Whitney Meyberg, who is in charge of advertising and promotions.

With between 250 and 300 dealers in Canada, Don’s Speed Parts has been named top Arctic Cat snowmobile dealer seven times since 1993 including four out of the last five years.

The award is based on sales, customer service, technical training and participating in Arctic Cat’s World Class Store program.

“When you are strictly dealing with Arctic Cat, we do a huge volume in parts and a huge volume of clothing. It’s all OEM (original equipment manufacturer) stuff,” said Kinghorn, who lives on a farm just north of town.

Kinghorn was born and raised in Wainwright and started the business in 1980 after working for eight years in a variety of oilfield jobs, following in the footsteps of his dad who operated oil wells for 30 to 40 years.

His first job was with Flint Energy in Lloydminster when he was a 17-year-old student. He finished school in 1972 and headed to Swan Hills, Alta., where he lasted for just two weeks on a service rig.

“I didn’t like it too much so I went to work for another company in construction in Swan Hills,” he said in a nutshell version of his resume.

After awhile, he was hired by Knight Measurement & Controls, working between Swan Hills and Whitecourt.

“In Whitecourt, I was up in bush country working in the oilpatch for about four years,” he said.

“Then I went to the sheet metal union in Edmonton and got my journeyman sheet metal ticket and was working in Fort McMurray at Syncrude, building the powerhouse up there,” said Kinghorn. ɸ Page A27

PIPELINE NEWS January 2013

Zane Kloberdanz, who works in the parts department, takes dozens of calls a day. Don’s Speed Parts stocks a large inventory of snowmobile parts for quick service turnarounds. Don’s also ships parts to other dealers.

ɺ Page A26 “There is lots of oil in Alberta and Saskatchewan’s huge. There is a lot of money in Alberta,” said Kinghorn.

One thing led to another and he returned to Wainwright – and 32 years later the oil industry continues to drive his store sales in Alberta and Saskatchewan, both directly and indirectly.

“We do a lot of business in Fort McMurray and Edmonton and it is all oilfield related.”

Don’s Speed Parts sells a variety of Arctic Cat sleds, mainly for recreation, as well as some for work purposes including the Bearcat for oilfield and outdoor work.

“There is a certain market for that, of course. Surveyors and guys like that want snowmobiles because they are out all the time,” said Kinghorn.

“Some of the oil companies, when there is too much snow and the roads aren’t plowed, they come in and they rent product from us –

utility vehicles and stuff like that.

“The majority of the business is recreation.”

Kinghorn is counting the days to Jan. 26 when he hosts another pumpjack charity snowmobile ride to raise money to restore a 1923 wooden pumpjack displayed at Petroleum Park across the highway from his shop.

“Four years ago we decided to start raising money for it,” said Kinghorn.” It will all be

completed next year.

“Our goal was to raise $100,000 and we surpassed that. We are still raising money so we can put lights on it, and do the landscaping around it. Any money we raise goes to the town for Petroleum Park.”

Last year’s ride was scrubbed for lack of snow, but about 200 riders are expected to convene at Don’s Speed Parts in January for the 20 to 30 mile ride

A27

through the country.

No doubt, some riders will hit the trail wearing Arctic Cat clothing or new upscale Klim snowmobile wear that is now in stock at Don’s.

“We just got the Klim clothing in, but up until now we’ve only ever sold Arctic Cat clothing,” said Kinghorn.

“Arctic Cat makes very good clothing, helmets and gloves and boots. ɸ Page A28

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A28

PIPELINE NEWS January 2013

Checking wells with a side-by-side instead of a truck A hooded Don Kinghorn stands by this new ArcƟc Cat Prowler XTX side-by-side unit with a snowplow at his Don’s Speed Parts shop in Wainwright. The dealership is the reigning 2012 ArcƟc Cat Snowmobile Dealer of the Year. Kinghorn has earned the Ɵtle seven Ɵmes since 1993 including four out of the last Įve years.

ɺ Page A27

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“If people are warm and dry, they enjoy the sport. If you are out and you’re wet or you’re cold, you’re not having fun.”

Don’s Speed Parts also carries a huge inventory of parts for Arctic Cat snowmobiles and ATVs in order to make for quick service turnarounds.

“A lot of other dealers, when they need a part, they order it in whereas we stock it. In the big picture we have a lot of dealers that buy parts from us,” said Kinghorn.

“Somebody brings a sled in and they don’t want to wait three or four days for the part – they just phone us and we ship the part.

“If it’s snowing and they wreck their sled, they want it fixed the next day, so you have to have parts.”

Don’s Speed Parts assembles and stores sleds and recreational vehicles at a nearby separate shop then moves them into an outdoor showroom tent at the retail store where they are sold.

Oil and gas companies are frequent buyers of the Arctic Cat Prowler side-by-side equipped with a 500 cc or 1000 cc engine.

“We sell of them to the oilpatch every year. For oil companies to check wells, it’s easier than using your $50,000 truck to bounce down the road,” said Kinghorn.

“They are friendlier on the terrain. We’ve been selling them to companies like Penn West and Husky Energy and companies like that.

The Suzuki ATV is popular with area farmers or for plowing snow.

“An awful lot of people buy an ATV and buy a dozer for it, so they plow their driveway with it rather than starting a big tractor. It’s a lot easier to use a small unit and it does it just as quick,” said Kinghorn.

When spring and summer roll around, Don’s Speed Parts sells Suzuki motorbikes, quads and Club Car golf cars among other products, but snow is currently on the minds of customers and employees.

“We like snow. Snow is always a good thing.

Mind you we like rain too, in the summer because if the farmer’s got money, then everybody’s got money,” said Kinghorn.

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A29

Bonnyville oil show well timed Bonnyville â&#x20AC;&#x201C; Energizing the economy. Thatâ&#x20AC;&#x2122;s the perfect theme for the 2013 Bonnyville & District Oil Show with major in situ oilsands projects planned or underway in the Cold Lake and Bonnyville areas.

The oil show will be held June 19-20 at the Centennial Centre as it was in 2011 when the show was ďŹ rst held, but this time around, the regional oil and gas industry is in a boom phase. â&#x20AC;&#x153;Thatâ&#x20AC;&#x2122;s the major thing that we have been hearing back from companies is that the show is perfect timing,â&#x20AC;? said Robyn Ducharme, show chair and president of the Bonnyville & District Chamber of Commerce which is hosting the event. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s going to be an excellent time for businesses to showcase whatâ&#x20AC;&#x2122;s going on because of the projects that are on the ground and running. â&#x20AC;&#x153;The general buzz is how busy we are. We are still expecting a lot of people to be moving into the area in the next couple of years here. You can see that in home sales.â&#x20AC;?

Ducharme is a ďŹ nancial planner and a stock broker for Edward Jones and she said two of her clients sold their house the day after they listed it. â&#x20AC;&#x153;I have heard there are only 12 houses for sale in Bonnyville on MLS,â&#x20AC;? she said on Nov. 28.

The strong regional economy is being driven by companies such as Cenovus Energy which is expanding its Foster Creek SAGD project near Cold Lake to a future optimum capacity of 310,000 barrels per day of bitumen.

Imperial Oil is on schedule to complete its $2 billion Cold Lake thermal expansion at Nayibe. It will produce 40,000 barrels per day of bitumen by the end of 2014 using cyclic steam stimulation.

Osum Oil Sands Corp. is also gearing up to begin Phase 1 construction of its planned 35,000 barrel per day SAGD and CSS Taiga projects near Cold Lake.

All three companies have signed on again as event sponsors of the 2013 oil show that was already half sold when Ducharme was interviewed. â&#x20AC;&#x153;The initial reaction has been great. We know that next June â&#x20AC;&#x201C; leading up to the next six months â&#x20AC;&#x201C; that this is an extremely busy area,â&#x20AC;? she said. â&#x20AC;&#x153;Everythingâ&#x20AC;&#x2122;s going really well. We are absolutely half-way sold out right now. â&#x20AC;&#x153;What I am expecting and what weâ&#x20AC;&#x2122;ve heard is that January is a new budget year. We are expecting to get a lot of bookings in January.â&#x20AC;? ɸ Page A30

Osum Oil Sands Corp. has signed on again to host the Bonnyville & District Oil and Gas Show registraĆ&#x;on barbecue. Osum received regulatory approval in 2012 for its planned 35,000 barrel per day bitumen project north of Cold Lake.

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A30

PIPELINE NEWS January 2013

More booths added Éş Page A29 More inside and outside exhibitor booths will also be added this time as a result of lessons learned from the 2011 show. â&#x20AC;&#x153;Our goal is to double the number of attendees to that show in 2013,â&#x20AC;? said Ducharme. â&#x20AC;&#x153;We werenâ&#x20AC;&#x2122;t really sure what to expect the ďŹ rst year. We are focusing our eďŹ&#x20AC;orts on advertising more to attendees and less to exhibitors. â&#x20AC;&#x153;We are expecting to completely sell out the exhibitors, so we are actually not doing any advertising there. â&#x20AC;&#x153;We are only advertising for people to attend the show and we are reaching out to broader markets. We didnâ&#x20AC;&#x2122;t really advertise in Edmonton, Calgary and Fort McMurray last time at all. â&#x20AC;&#x153;We plan to advertise more throughout the entire province and also networking through e-mail to get people through the doors as well. â&#x20AC;&#x153;I think the biggest thing for us is using word of mouth, and I think the

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e-mails are what are really going to be able to do that.â&#x20AC;?

Ducharme said improvements will also be made to the popular reverse trade show called the Oilmenâ&#x20AC;&#x2122;s Room that gives exhibitors a crack at procuring business with the major oil and gas players in the area. â&#x20AC;&#x153;What we are doing with the Oilmenâ&#x20AC;&#x2122;s Room this year is, we are going to be giving exhibitors the option to book an appointment,â&#x20AC;? said Ducharme. â&#x20AC;&#x153;That was something a lot of the exhibitors asked for. Last time, they went in at a certain time and they would have to wait. We are going to be oďŹ&#x20AC;ering appointments this year.â&#x20AC;?

Visitors will get in free this year provided they pre-register online up to the day of the event, unlike in 2011 when the free cut-oďŹ&#x20AC; date for registering was two weeks before the doors open. â&#x20AC;&#x153;If you havenâ&#x20AC;&#x2122;t preregistered by the day of the show, we will be charging $20 at the door and all proceeds will go to STARS,â&#x20AC;? said Ducharme who expects a great turnout. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s going to be bigger and better than last time. I think that was really impressive for our ďŹ rst show, but we are deďŹ nitely tweaking a lot of things,â&#x20AC;? she said. â&#x20AC;&#x153;We are taking some of the things that didnâ&#x20AC;&#x2122;t go right â&#x20AC;&#x201C; we know how to ďŹ x those now. We are just making it bigger and better. â&#x20AC;&#x153;If everything goes the way we are planning, we will double the number of attendees. We are expecting to have the same show as last time, but on an even bigger and better scale.â&#x20AC;?

Event sponsorships are also selling well, with the majority of sponsors from the 2011 show returning to support another round of events including the registration night barbecue and banquet.

The 2013 oil show will also feature up to eight speakers, but the venue will move from the theatre to site of the sponsored exhibitorsâ&#x20AC;&#x2122; breakfast and lunch in an eďŹ&#x20AC;ort to boost attendance and interest.

Ducharme said planning for the 2013 oil show began about a month after the conclusion of the initial show in 2011, and lots of people have asked to be on the organizing committee. â&#x20AC;&#x153;We have probably added a good 10 people to the planning committee.

Thatâ&#x20AC;&#x2122;s been amazing,â&#x20AC;? she said.

Ducharme said her job at Edward Jones, advising clients on buying and selling oil stocks, ďŹ ts nicely with her mission with the chamber to attract business and investment to the region with the oil show as a lever. â&#x20AC;&#x153;I know a lot of people and I know oil. I have an oil and gas background as well,â&#x20AC;? she said. â&#x20AC;&#x153;My clients all work for oil. Itâ&#x20AC;&#x2122;s nice to be able to have the type of background I do, and be able to sit down in front of my clients and actually understand what they are doing every day.â&#x20AC;?

Tanya Oliver, who acted as show co-chair in 2011, is the executive director in 2013 and is currently on maternity leave until March when the excitement will build. â&#x20AC;&#x153;I think whatâ&#x20AC;&#x2122;s really going to happen in the new year is a new budget year and all of a sudden the show is in the same year â&#x20AC;&#x201C; a couple of months away â&#x20AC;&#x201C; and thatâ&#x20AC;&#x2122;s when people really start to get excited. â&#x20AC;&#x153;We are expecting in the new year in January to be really busy with nailing down the details of the show,â&#x20AC;? Ducharme said.

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Lloydminster charts a new course 80 years of intergovernmental co-operation. â&#x20AC;&#x153;Like many Saskatchewan communities, Lloydminster is growing,â&#x20AC;? Saskatchewan Government Relations Minister Jim Reiter said in a news release. â&#x20AC;&#x153;So it was the right time to revisit the Charter to ensure it serves the needs of those living in this unique city. We are proud of the work done with our partners so our border city can provide eďŹ&#x20AC;ective lo-

cal governance as this community continues to grow.â&#x20AC;?

The last major update of the Charter was in 1979. The new Charter is approved through orders in council in both Saskatchewan and Alberta and will come into eďŹ&#x20AC;ect on Jan. 1, 2013. â&#x20AC;&#x153;The new Lloydminster Charter is a milestone for the City of Lloydminster,â&#x20AC;? said Lloydminster Mayor JeďŹ&#x20AC; Mulligan. â&#x20AC;&#x153;The Charter seam-

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Pictured in aĆŠendance for the signing of a new Lloydminster Charter are (l-r): MLA Richard Starke, associate Minister Greg Weadick, Mayor JeÄŤ Mulligan, Minister Jim Reiter, MLA Tim McMillan.

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lessly aligns Lloydminster with legislative powers to enable the eďŹ&#x20AC;ective operation of our municipality in both provinces, while providing increased accountability and ďŹ&#x201A;exibility. â&#x20AC;&#x153;We thank our biprovincial partners and our teams of dedicated personnel for their work in renewing this important document and their commitment to ensuring the Charter paths in an orderly fashion with provincial legislation in the future.â&#x20AC;?

The new Charter updates the cityâ&#x20AC;&#x2122;s authority, allowing for more ďŹ&#x201A;exibility and innovation and aligning it with current provincial

legislation for Alberta and Saskatchewan cities.

It is easier to understand and modernizes the regulations and processes that apply to municipal government. â&#x20AC;&#x153;The new Lloydminster Charter represents years of hard work and collaboration between the city and governments of Alberta and Saskatchewan,â&#x20AC;? said Alberta Associate Minister of Municipal AďŹ&#x20AC;airs Greg Weadick. â&#x20AC;&#x153;This is, however, more than a tri-partite agreement for Canadaâ&#x20AC;&#x2122;s border city; it gives the City of Lloydminster the right tools to govern its citizens today and in the years to come.â&#x20AC;?

The Village of Lloydminster, ďŹ rst established 1903, was split in two when the provinces of Saskatchewan and Alberta were created in 1905. In 1930, the two communities became a single municipality, the Town of Lloydminster, by order in council in both provinces.

On Jan. 1, 1958, the Town of Lloydminster received its charter as the City of Lloydminster and became the 10th city in both provinces.

Lloydminster is the only border city in Canada that is incorporated as a single city with a single municipal administration.

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Dress for cold at Northern Factory you are able to take off one piece and still stay warm, but have the protection when you are out in the cold.”

To accommodate a growing line of winter

clothing and accessories for the whole family, Northern Factory has a combined total of 20,400 sq. ft. at both locations.

“We have -60 to

-70 C suits for snowmobiling for kids, men and ladies as well as footwear for all ages from infant size four up to men’s size 16,” said Beznoska. ɸ Page A34

Derek Van Metre, who buys safety gear for LML Industrial Contractors Ltd., talks with Northern Factory Workwear owner Pam Beznoska about Įlling a large order for 45 winter Nomex jackets and 200 coveralls with the LML logo embroidered on the backside.

comfortable jacket when stepping in and out of his truck for minutes at a time at a lease site.

“I am buying an insulated jacket with a wind barrier in it,” he said. “I put it over top of my fire retardant coveralls.”

He eventually selected a mid-length bomber Nomex IIIA jacket by Actionwest, with Scotchlite reflective tape.

“I find this fits best.

It’s just the right length so you are not sitting on your jacket when you are inside the cab,” he said.

Bielecki also wears fleece pants, a hard hat liner, insulated gloves

and steel-toed insulated workboots to stay warm on the job during the winter. He likes the selection at Northern Factory.

“We have lots of inventory and we are getting into the layering system and making sure we have enough underwear and outerwear to provide everybody for the winter to stay warm,” said Beznoska.

“You have your base layer of clothing – underwear – and quite often you will have another piece of clothing like a hoodie and an outer layer.

“So if you are in and out of a building,

Geordie Fitzsimonds, a construcƟon supervisor with Bexson ConstrucƟon Ltd. in Lloydminster, tries on some Ɵght Įƫng gloves that will allow him to pick up a nail or a screw without having to expose his bare hand in the winter cold.

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Lloydminster – During any cold snap, winter oilfield and industrial work clothing and safety gear sold at Northern Factory Workwear outlets in Lloydminster and Saskatoon seems to sprout wings.

That was the case during deep-freeze conditions at the end of November that sent a wave of local workers and their families to the Lloydminster store to raid the shelves for head-to-toe winter wear.

“Everything is flying off the shelf – anything that is warm is flying off the shelf,” said Pam Beznoska owns both locations with her husband Neal.

Workboots, fire retardant jackets, under garments, coveralls, bibs, gloves, hats and hard hat liners were among the items cleared for takeoff at the cash register.

Early seasonal sales of winter family clothing, snowmobile suits and even kids’ wear were also strong.

“It’s busy, very busy,” said Beznoska, who is pleased to see cold weather arrive a month earlier than it did last year.

“We start getting our stock in August, so it’s nice to see it moving a little quicker than November and December of last year,” she said.

“Now we are restocking because winter is here for awhile.”

Cold weather brought crude hauler Melvin Bielecki back to the store to buy a new fire retardant Nomex IIIA jacket for his oilfield job.

Bielecki owns M & R Bielecki Trucking Ltd. in Marshall and he needs a warm but

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PIPELINE NEWS January 2013

That time of year Éş Page A33 â&#x20AC;&#x153;We have a huge selection of sizes available in footwear and clothing up to ďŹ ve XL. â&#x20AC;&#x153;Families have to stay warm too. Itâ&#x20AC;&#x2122;s not all about work. Itâ&#x20AC;&#x2122;s about play too. Workers are able to come here and do a one stop shop for the whole family.â&#x20AC;?

Northern Factory also carries more than 100 styles of gloves including winter glove liners and rugged insulated gloves for outdoor construction jobs.

Geordie Fitzsimonds, a construction supervisor with Bexson Construction Ltd., is a regular corporate customer at Northern Factory who came in from the cold to browse through the glove racks. â&#x20AC;&#x153;I like to wear some kind of tight ones so I can pick up screws. I need to be able to grab something that small,â&#x20AC;? he said. â&#x20AC;&#x153;It also depends on the job. If you are work-

ing on bigger stuďŹ&#x20AC; you can wear thicker gloves that are a little more insulated.â&#x20AC;?

Fitzsimonds mostly works outdoors and was wearing coveralls over a hoodie when he walked into the store to warm up with new gloves in mind for the job site. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s winter thatâ&#x20AC;&#x2122;s for sure,â&#x20AC;? he said. â&#x20AC;&#x153;A lot of time, I will just wear a couple of sweaters.

You gotta wear the right clothes. You kind of get used to it after awhile.â&#x20AC;?

Winter steel-toed workboots by brand names such as BaďŹ&#x192;n and Dunlop are must buys for anyone who works outdoors. â&#x20AC;&#x153;With BaďŹ&#x192;n, there are about 10 diďŹ&#x20AC;erent styles that we carry.

They are good from -20 to -100 Celsius,â&#x20AC;? said Beznoska.

One of the hottest novelty products at Northern Factory this winter is wireless remote-controlled ThermaCELL heated

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insoles with rechargeable batteries. â&#x20AC;&#x153;If you are outside for any extended period of time, itâ&#x20AC;&#x2122;s nice to have your feet warm. If your feet are warm, then you are warm,â&#x20AC;? said Beznoska.

A new self-serve Dr. Schollâ&#x20AC;&#x2122;s custom ďŹ t orthotic centre like the one seen on TV ads is getting a lot of use at both locations and is the only one available in Lloydminster. â&#x20AC;&#x153;We get a lot of referrals from doctors that send their patients over here to try this because of the technology thatâ&#x20AC;&#x2122;s in it,â&#x20AC;? said Beznoska.

Northern Factory is also generating more business each year for its embroidery service that can put company logos or employee names on jackets and coveralls of all types.

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Melvin Bielecki, owner of M and R Bielecki Trucking Ltd. in Marshall, tries on a new Nomex IIIA jacket as Northern Factory Workwear owner Pam Beznoska looks on.

Ltd., was at the front counter praising the ordering, embroidery and deliver service provided

by Northern Factory. â&#x20AC;&#x153;The accommodate us. They supply us with all our coveralls, all our gear, all our safety gear,â&#x20AC;? said Van Metre who put in an order for 45 winter Nomex jackets and 200 coveralls with the LML embroidered logo. â&#x20AC;&#x153;We buy all our winter gear and all our safety gear here. They generally accommodate with us with large volumes of safety gear.â&#x20AC;?

LML provides cost-eďŹ&#x20AC;ective services for routine maintenance and plant turnarounds, including the upcoming 2013 spring maintenance turnaround at the Lloydminster Husky Upgrader. â&#x20AC;&#x153;We will be looking at 1,500 pairs of coveralls and accessory gear to accommodate the guys coming for the turnaround,â&#x20AC;? said Van Metre. â&#x20AC;&#x153;We get that all through Northern Factory because we get our stitching all accommo-

dated through Northern Factory. â&#x20AC;&#x153;Pam, sheâ&#x20AC;&#x2122;s over here glowing. Itâ&#x20AC;&#x2122;s like she just hit the jackpot. â&#x20AC;&#x153;They do all the stitching and we donâ&#x20AC;&#x2122;t have to worry about anything. They put our labelling on them for us. Itâ&#x20AC;&#x2122;s all a one-stop shop. It makes it nicer because itâ&#x20AC;&#x2122;s less confusion and hassle. â&#x20AC;&#x153;We just call them and tell them how much we want, they set it up, they get it stitched and they deliver it.â&#x20AC;?

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A35

Baker Hughes rolls on winter tires Lloydminster – Driving around the world several times in a single day safely at this time of the year requires good winter driving practices and great winter tires.

Baker Hughes employees in Canada accomplish that feat daily thanks to company-wide safety measures that include a winter driving campaign, a road journey management program and a winter tire policy.

“We do about 137,000 kilometres day with Baker Hughes in Canada, so we go around the globe just about three times,” said Calgary-based Rod Stearn, vice president of well production and oil sands.

“Driving that many kilometres is our biggest risk, so what we want to do is make sure people have the tools to maximize our safety success rate.”

Safe winter driving was top of mind for Larry Sartori, a continuous improvement technical manager with Baker Hughes, also from Calgary. He noted this in his opening remarks at the November lunch meeting of the Society of Petroleum Engineers in Lloydminster.

Sartori drove his pickup truck equipped with snow tires more than 550 kilometres from Calgary to Lloydminster over snow-packed highways to deliver his message.

“The first snowfall of the year is an excellent reminder of the need for good winter driving practices,” said Sartori.

“Our objective is for all of our guys to get home safely to their families every night.”

Baker Hughes Canada has a staff of more than 400 employees in its upstream chemical division with the bulk of winter oilfield driving occurring in Alberta and Saskatchewan.

“One of the main polices we have is the winter tire policy. I am fairly proud that our company has

made all drivers put winter tires on from Oct. 15 to March 31,” said Sartori.

“It’s an important thing for the company to make sure our employees get home safe and the winter tire policy definitely helps.

“Our producers are going that route as well. We want to make sure we are in line with producers.

Juan More, a Lloydminster Įeld specialist, compleƟons and producƟon, shows oī the Goodyear Ultra Grip winter Ɵre on this company pickup. Baker Hughes has a winter Ɵre policy in eīect from Oct. 15 to March 31.

We want to make sure our guys get to lease and do their jobs safely.”

In Lloydminster, Baker Hughes allows employees to choose up to six different winter tire brands available from local suppliers.

The company’s winter tire policy has been in

effect for three years and goes hand in hand with other measures Baker Hughes is taking to promote safe winter driving.

“We have a winter driving campaign where we get tidbits of information sent to us by e-mail on things to do properly when you are driving in winter conditions,” said Sartori.

“We have a road journey management system which requires our guys to check weather conditions, among other trip details, before they jump in their trucks and go.

“If you are travelling any distance, we are required to fill out a journey management form and review it with our managers and supervisors for higher risk trips.”

Bakker Hughes also uses GEOTrac fleet management software for its in-vehicle monitoring system. It reports on driving speeds on primary, secondary and gravel roads.

“It’s very similar to a GPS,” said Sartori. “It keeps track of our speed, our mileage and where we are and other information. It’s a part of the industry now, and it’s a good thing.

Improved safety with GEOTrac can result in direct savings to oil and gas companies through lower insurance premiums and fewer infractions such as speeding.

“It’s a reporting system,” said Stearn. “We are able to monitor speeds and coach people and enforce policy on highways and secondary roads.”

The most popular application of GEOTrac software is the customizable maps using the LSD grid system for oil and gas locations and for route optimization, security and safety purposes.

“We are just getting into it. You can do a lot of things with GEOTrac,” said Stearn.

“We are just kind of dipping our toes into the different functions of it.”

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A37

Snow jump-starts sales at Boundary This Polaris Ranger 700 side-by-side that is in for a maintenance check is being used for winter wireline work and is equipped with snow tracks.

Â&#x201E; By GeoďŹ&#x20AC; Lee Lloydminster â&#x20AC;&#x201C; Cold weather and snow are best friends of Boundary RV & Marine in Lloydminster, an outlet that oďŹ&#x20AC;ers Yamaha and Polaris sleds, utility ATVs and side by sides. â&#x20AC;&#x153;The cold weather is good, but snow is the biggest thing,â&#x20AC;? said general manager Andrew Bentley. â&#x20AC;&#x153;Last year, we had -30 Celsius and no snow. That is not good for anybody. Snow is the biggest thing that will move product. â&#x20AC;&#x153;Sales are really good for this year. We are very happy with the way things are going.â&#x20AC;?

It was -17 C and there was plenty of snow on the ground on Dec. 6 when Bentley got behind the wheel of a Polaris Ranger 800 side-by-side equipped with a plow that the service shop uses around the yard. â&#x20AC;&#x153;It has a fully enclosed cab and a winch and a plow on it. That cab is sound and heat insulated so it is quieter than a lot of others,â&#x20AC;? said Bentley. â&#x20AC;&#x153;It is popular with the oilpatch. They like anything that is going to keep their guys a little bit warmer and out of the elements, so the guys can work in comfort.â&#x20AC;?

The Ranger 800 was equipped with a heater, a defroster, windshield wipers and other accessories, making it an ideal winter oilďŹ eld vehicle for transporting personnel and cargo and for plowing snow. â&#x20AC;&#x153;The Rangers have the availability for a lot of accessories. We can make a $15,000 Ranger into $25,000 one in no time ďŹ&#x201A;at by adding things like lift kits, tires and rims,â&#x20AC;? said Bentley. â&#x20AC;&#x153;We can put doors and fully enclosed cabs on them as well as tracks and plows.â&#x20AC;?

The Polaris Rangers also come with a 1,000 lb. capacity tilting storage box for hauling equipment and supplies to and from oďŹ&#x20AC;-road oilďŹ eld sites.

The box has multiple tie-down points and dozens of so-called Lock & Ride accessories for working and hunting.

Bentley also talked about oilďŹ eld uses for a Ranger 700 side-by-side equipped with winter tracks that was in the service shop for a maintenance check. â&#x20AC;&#x153;A lot of wireline companies put tracks on them because there are places no man or utility vehicle should be, and that will unit will get them there,â&#x20AC;? said Bentley. â&#x20AC;&#x153;The tracks are made for snow and ice. They are not made for muddy situations or sand.â&#x20AC;?

Contractors and subcontractors are the main buyers of Ranger side-by-

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sides including the sporty RZR models at Boundary RV & Marine. â&#x20AC;&#x153;These are the units that guys are speciďŹ cally buying for multi-purpose use,â&#x20AC;? said Bentley. â&#x20AC;&#x153;You can ďŹ t two people in them. Itâ&#x20AC;&#x2122;s a personally owned unit. Guys will come and buy it for themselves even though they are buying it for their business. â&#x20AC;&#x153;They will put their wife or kids in it and take them out ďŹ shing or hunting, but they can still use it for business purposes.â&#x20AC;?

All Polaris RZRs have long suspension travel and high performance shocks for the demands of oďŹ&#x20AC;-road conditions for work or play. â&#x20AC;&#x153;The RZR is more of a sand dune buggy style side-by-side that has more of a â&#x20AC;&#x2DC;sit downâ&#x20AC;&#x2122; car type feel. Itâ&#x20AC;&#x2122;s more of a sports unit,â&#x20AC;? said Bentley. â&#x20AC;&#x153;Guys are using it for recreational use and for business purposes, either taking customers or other employees out onto a lease site. â&#x20AC;&#x153;The RZR 4 can reach speeds of up to 80 mph. Thatâ&#x20AC;&#x2122;s why itâ&#x20AC;&#x2122;s for recreational use and thatâ&#x20AC;&#x2122;s why a lot of guys like it for business use, because it gets the job done in half the time.â&#x20AC;?

The Polaris RZR is marketed as having the ultimate combination of power, suspension and agility. ɸ Page A38

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PIPELINE NEWS January 2013

Corporate is 25% of customer base Éş Page A37 â&#x20AC;&#x153;The RZR S is popular with wireline companies because of its 60-inch width,â&#x20AC;? said Bentley. â&#x20AC;&#x153;It still ďŹ ts on trails and still ďŹ ts through most tight places, but it has a long suspension and it also has as much power as any of the other ones out here at 800cc. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s a nice unit for the guys that are oďŹ&#x20AC;-trails.â&#x20AC;?

Most of the Ranger and RZR side-by-sides feature electronic fuel injection for easy starts in cold weather conditions and are sold with on demand AWD/2WD capability. â&#x20AC;&#x153;Anyone of these will start in any situation be it cold or otherwise. They are very good for winter,â&#x20AC;? said Bentley.

Dependability, reliability and durability are what help sell Yamaha ATVs to corporate buyers who represent about 25 per cent of Boundary RV & Marine customer base. â&#x20AC;&#x153;A lot of companies look for a number of things,â&#x20AC;? said Bentley. â&#x20AC;&#x153;They are

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also looking for size and power without having to buy too much power. â&#x20AC;&#x153;The Kodiak 450 and the Grizzly 550 by Yamaha ďŹ t well into that.

OilďŹ eld companies use Yamaha product solely for its dependability, reliability and durability.â&#x20AC;?

Both quads are sized to ďŹ t two side by side on a trailer or a truck deck â&#x20AC;&#x201C; one of the selling points. â&#x20AC;&#x153;They buy them because of size â&#x20AC;&#x201C; the ability to ďŹ t them side by side, the ability for guys to get on them,â&#x20AC;? said Bentley. â&#x20AC;&#x153;They are small enough so you can only ďŹ t one person on them. A lot of companies want that because they donâ&#x20AC;&#x2122;t want two people on a quad for liability reasons. â&#x20AC;&#x153;The Kodiak 450 is a good quad for one person only.â&#x20AC;?

The 450 comes with automatic transmission, on command 2WD/4W diďŹ&#x20AC;erential lock and a rear sealed wet brake and is popular with oilďŹ eld companies in the dead of winter. â&#x20AC;&#x153;These things are used all over northern Canada and northern Alberta and northern Saskatchewan and they are used in the coldest of weather,â&#x20AC;? said Bentley. â&#x20AC;&#x153;A lot of surveyors and a lot of oil companies use them. They use them up in the diamond mines as well.â&#x20AC;?

Cold and snow are welcome any time at Boundary RV & Marine in January and February when everything in stock goes on sale including Yamaha and Polaris sleds. â&#x20AC;&#x153;All of our sleds are going on sale for the months of January and February. We have a big blow-out sale starting in January,â&#x20AC;? said Bentley. â&#x20AC;&#x153;Last year was a really tough year for sleds. We had a really good year as far as ATVs and side-by-sides go. â&#x20AC;&#x153;We starting selling them in March and we were sold out by the middle of April. â&#x20AC;&#x153;This year, we are watching inventory very closely. We are trying to bring in as much as we can so we can be ready for that March rush again. â&#x20AC;&#x153;The snow is really helping now.â&#x20AC;?

More than 90 per cent of Boundaryâ&#x20AC;&#x2122;s sales are to people who buy their machines for personal use, with Polaris mountain sleds being the most popular. â&#x20AC;&#x153;Thereâ&#x20AC;&#x2122;s about 10 per cent coming in and buying for corporate use â&#x20AC;&#x201C; again for wireline,â&#x20AC;? said Bentley. â&#x20AC;&#x153;Surveyors use a lot of the Yamaha product as well as some of the four stroke Polaris product.â&#x20AC;?

Boundary RV & Marine also sells Cargo Mate trailers for ATVS, sideby-sides and sleds.

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A39

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A40

PIPELINE NEWS January 2013

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PIPELINE NEWS

SECTION B January 2013

The Port of Churchill is no stranger to tanker traĸc. For decades, tankers were used to bring in fuel to supply the joint U.S.-Canadian military base. The tank farm can be seen behind the grain terminal. Now these faciliƟes are being considered for exporƟng Western Canadian crude oil.

Photo courtesy the Churchill Gateway Development CorporaƟon

Port of Churchill considered for crude export

By Brian Zinchuk Winnipeg, Churchill, Man. – Work is underway for another export outlet for Western Canadian oil, but it’s not where you might expect. If successful, this oil will not be going west, to the Pacific coast, or via pipeline south or east. No, this route leads north.

The idea is to ship light crude oil by rail to the Port of Churchill, Manitoba, where it will then be loaded onto tankers. Those tankers could then carry the oil to refineries on the East Coast of Canada or the U.S., the U.S. Gulf Coast, or Europe.

Canada’s northernmost port has an important feature. Its entire reason of being it is has been the closest tidewater port for prairie grain. That also makes it the closest port for Saskatchewan oil.

Jeff McEachern, executive director of the Churchill Gateway Development Corporation (CGDC), spoke to Pipeline News on Dec. 7 via phone from Winnipeg, where they are headquartered.

The CGDC is a non-share, public-private partnership and includes representation from the government of Canada (Western Economic Diversification), the province of Manitoba and OmniTRAX, Inc. OmniTRAX is the private owner/operator of the Port of Churchill and the railway that serves the port, the Hudson Bay Railway Company. OmniTRAX, bought the rail line over a decade ago.

“Early this year (2012), we received a call from a producer who wanted to ship oil from the port,” McEachern said.

“There’s a lot of moving parts at this point. " That got the ball rolling. They have been meeting with producers, midstreamers and refiners, and studying the economics. That studying has led them to “become comfortable that this has some legs.”

“Our proximity to producers is pretty good,” he said, noting how close the port is to central Alberta and southeast Saskatchewan oil production. “Strategically, we’re good for Eastern Canada and Europe.

The total volume of shipments they are aiming for is rather small in comparison to Canadian production. “It’s about 2 million barrels (per year) is what we’d like to work towards.

“That number is a comfortable number.”

Put in perspective, that would be less than four-and-a-half days of Saskatchewan’s total production. Put another way, it would be roughly 50 days of shipping from Crescent Point’s recently-expanded 40,000 barrels per day rail loading facility near Stoughton.

He acknowledged, “It’s insignificant based on production in the market.”

But it is another option.

Asked if they were targeting smaller, more nimble junior producers, or larger ones, McEachern said, “At this point, the entire market is our target market.” ɸ Page B2

B2

PIPELINE NEWS January 2013 2012

Ice has not been a problem for grain shipments ɺ Page B1 Improved car efficiency One of the key factors in shipping crude-by-rail is the availability of tanker cars. It can take 20 to 30 days for a car to be shipped to the Gulf or East Coast and back. But a run from southeast Saskatchewan to Churchill is substantially shorter.

“From southeast Saskatchewan, a return cycle, including unloading, is probably 16 days,” he said. The result is a substantial increase in rail car efficiency. You can ship more oil using the same number of cars.

The Churchill Gateway Development Corp. won’t be providing cars, however.

That’s up to the producers, midstream companies or refineries.

While geography is a benefit, it also has its challenges. Churchill is far from being an ice-free port. It’s shipping season is from July 31 to Oct. 31.

“The shipping season is dictated by vessel insurance,” McEachern said. “Last year we probably could have shipped until Christmas due to ice in the bay. Global warming has had an effect on the ice.”

The insurance companies haven’t adjusted their season yet, but he noted they are aggressively working on it.

“Adding one month to a four-month shipping season is a big pickup,” he said.

A few weeks at the beginning of the season, and a few at the end, would be a great benefit. Going further into the fall would make a substantial difference to their grain shippers, extending the harvest shipping window.

As for ice, McEachern said no grain vessels have experienced ice issues in recent years.

“It hasn’t been raised as a concern by charter owners or vessel agencies.”

The Labrador coast is known as iceberg alley. There’s a fair amount of traffic, with grain traffic and ships servicing Nunavut mines, he noted. “There’s no documented accounts of problems in the grain shipping season,” he said.

Environmental concerns have been the Achilles heel for other shipping options, including the proposed Northern Gateway pipeline and Keystone XL pipeline.

Whereas Hudson Bay is similar in size to the Gulf of Mexico, the latter has thousands of vessels that can mount a response with booms and skimmers.

But there are precious few vessels in the entire Hudson Bay. Asked how they would mount a response to a spill, McEachern said it is part of the operational plan they are working on, but it not finalized or ready yet. Similarly, the environmental assessment is part of their engineering work. He noted they are working will all appropriate agencies.

Tankers are not new to Churchill, not by a long shot. There’s a substantial tank farm in Churchill that was built to support the former U.S. and Canadian joint military base there. Tankers used to be used to bring in fuel, but now that comes in by rail. Just a fraction of the tank farm’s capacity is currently used for refined products – diesel, jet fuel, gasoline. But it can also be used for crude. The system can both receive and ship petroleum products.

“It’s bi-directional,” he said.

The tankage has a total capacity of 250,000 barrels. McEachern said they anticipate approximately 200,000 bbl. could be used for unrefined product. The remainder is used to service the community.

“We’re evaluating our storage capacity right now,” he said.

That’s not enough, however, to fill a ship.

“The ships we’re looking to fill are 250,000 to 300,000 barrels,” McEachern said.

However, with full storage and the ample rail storage they have, they can easily fill such a ship.

For the sake of modelling, they are working with the current capacity for the first year or two, before looking into additional storage.

“These investments are driven by the market,” he said.

As far as ships go, that tanker size is relatively small. They are targeting six to eight ships a year. Their combined capacity would equal just one very large crude carrier (VLCC), also called supertankers, and be half of the capacity of the largest ships, ultra large crude carriers.

Seventeen grain vessels were loaded at Churchill during the 2012 season, with destinations ranging from Columbia to Kenya. Most of the destinations were in Africa, with Europe being the second most frequent destination.

Rail capacity One of the concerns Canadian National raised in the 1990s was the capacity of the rail line to handle heavier traffic. At the time, CN said they could only ship grain in boxcars on that line, instead of heavier hopper cars. OmniTrax has been able to overcome that, however, and routinely uses hopper cars.

The portion north of Gillan in particular, built on permafrost, has its speeds reduced. “That piece of line has seen a lot of upgrades in the last 10 years,” he said.

Oil tanker cars are not much different, according to McEachern, and while their weight capacity is slightly lower than Class 1 railways (268,000 pounds per car versus 286,000 pounds). Rail tanker cars are typically loaded between 600 and 650 barrels based on the weight capacity of the rail line, not the volume capacity of the cars. They are using 600 barrels per car in their calculations.

This summer targeted “The target is to have a vessel loading in July 2013,” McEachern said. They are hoping to have commercial agreements in place in the coming months.

“Last year we probably could have shipped until Christmas due to ice in the bay. Global warming has had an effect on the ice.”

- Jeff McEachern, Executive director of CGDC

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PIPELINE NEWS January 2013

B3

More women needed in the patch Â&#x201E; By Josh Schaefer For Pipeline News Saskatoon â&#x20AC;&#x201C; Itâ&#x20AC;&#x2122;s a common sight everywhere you go in the oilpatch: precious few tradeswomen, but, Edmonton-based not-for-proďŹ t Women Building Futures is on a mission to change that. â&#x20AC;&#x153;What weâ&#x20AC;&#x2122;re seeing right now is a real shift,â&#x20AC;? said president and CEO JudyLynn Archer. â&#x20AC;&#x153;Youâ&#x20AC;&#x2122;re seeing more women expressing an interest in ďŹ nding out more information about these kinds of jobs and industries and weâ&#x20AC;&#x2122;re seeing a signiďŹ cant shift in terms of the industry being really open and interested in hiring more women.â&#x20AC;?

Women Building Futures recruits and trains women for the industrial, institutional, construction, mining, roadworks and the oil and gas industries. â&#x20AC;&#x153;It has been traditionally a male industry, the same as health care has been traditionally female,â&#x20AC;? said Archer, noting a large increase over the last six years of women coming into the workforce. â&#x20AC;&#x153;You have a lack of awareness in women about these industries, now more and more women are ďŹ nding out about these jobs.â&#x20AC;?

Archer estimates that 10 years ago, about three per cent of construction related tradespeople in Alberta were women. That number today is at four per cent. â&#x20AC;&#x153;It might not sound like a lot, but thatâ&#x20AC;&#x2122;s actually a lot of individuals needed to move that needle.â&#x20AC;?

Women Building Futures has been responsible for 650 tradeswomen coming out of their program into industry and in 2011 they had more than 2,600 women contact them for more information about getting into industry related work. â&#x20AC;&#x153;As more and more women learn about these opportunities, more and more women are coming into the industry,â&#x20AC;? Archer said. â&#x20AC;&#x153;In terms of the retirement of the baby boomers, Saskatchewan is looking at unprecedented growth.

Weâ&#x20AC;&#x2122;re going to need more people and in fairly large numbers to replace the retirements. â&#x20AC;&#x153;Can women do this work? Yes, of course they can,â&#x20AC;? Archer said, speaking about the pipeline work speciďŹ cally. â&#x20AC;&#x153;I donâ&#x20AC;&#x2122;t think many women know too much about that particular segment of the industry, and Iâ&#x20AC;&#x2122;m not convinced that the pipeline industry reaches out to women.â&#x20AC;?

Archer noted that in the awareness campaigns that her organization has been running for the past 10 years, they exclusively use photographs of women in their literature. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s just like any other type of marketing, you target your images,â&#x20AC;? Archer explained. â&#x20AC;&#x153;Women respond to those pictures. We would love to work with the oilpatch to do more of that. Itâ&#x20AC;&#x2122;s certainly paying oďŹ&#x20AC; for the construction sector in working with us to get their name out to women in Alberta.â&#x20AC;?

Working with large and small companies in the construction and oilsands sectors, Archer noted that they do not currently work with any companies involved in the oilpatch. â&#x20AC;&#x153;We have to let women know that these opportunities are out there and these companies are actually looking to hire, they need people whether they are male or female. Theyâ&#x20AC;&#x2122;re looking to hire people

with the right skills.â&#x20AC;?

Women Building Futures focuses their attention on the 100 women they help annually in several key areas. â&#x20AC;&#x153;The ďŹ rst thing we do it get information out to raise awareness.â&#x20AC;?

The second step is assisting the applicant in making a determined and well informed decision about whether the chosen career is a good ďŹ t for their lifestyle.

Women Building Futures then provides the necessary training, workplace culture preparedness training, safety training and helps to develop the skills that are required for the chosen career. â&#x20AC;&#x153;At the end of the program, our job is to make sure that our students, when they graduate, go to work and continue to work in that ďŹ eld. We provide ongoing coaching and mentorship as long as she needs it.â&#x20AC;?

Archer says that this helps make the diďŹ&#x20AC;erence with the companies that Women Building Futures works with.

â&#x20AC;&#x153;We donâ&#x20AC;&#x2122;t just train people, we try our best to get the right people into the right training program and into employment that they will maintain for the long haul.â&#x20AC;? â&#x20AC;&#x153;As more and more women start to apply for these jobs, weâ&#x20AC;&#x2122;ll see more and more of them out there, and we see it every day,â&#x20AC;? Archer said.

Women Building Futures was in Saskatoon on Nov. 26, hosting a Best Practices for Hiring and Retaining Tradeswomen workshop. â&#x20AC;&#x153;I thought it was really well attended,â&#x20AC;? Archer said. â&#x20AC;&#x153;We had a really good conversation about whatâ&#x20AC;&#x2122;s working now and we can do to improve this entire eďŹ&#x20AC;ort of getting more women working in industry.â&#x20AC;?

A good mix of people attended, ranging from post-secondary students, to industry and mining as well as people involved in apprenticeship programs. â&#x20AC;&#x153;Thereâ&#x20AC;&#x2122;s a role of industry in terms of making sure that once weâ&#x20AC;&#x2122;ve attracted these great people, we need to retain themâ&#x20AC;? Archer said in conclusion.

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PIPELINE NEWS January 2013

New mayor takes the reigns in Estevan Â&#x201E; By Brian Zinchuk Estevan â&#x20AC;&#x201C; Estevan, the Energy City, has a new mayor, but one who has plenty of experience on city council and who is aware of the booming cityâ&#x20AC;&#x2122;s challenges.

Mayor Roy Ludwig had been a member of council for 18 years prior to being elected mayor.

Pipeline News spoke to Ludwig after he was elected to the post in late October, and again in early December.

Ludwig, has spent 36 years as a coal miner with Sherritt Coal, which has had many names over the years, working in a number of roles over that time.

Currently he works on the pump crew, dewatering pits. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s a constant job. The water is always leaking in constantly. I am on a team, usually four of us per shift, that keeps the pits dry so they can take the coal out.â&#x20AC;? â&#x20AC;&#x153;I have a blue-collar job,â&#x20AC;? he said. â&#x20AC;&#x153;I like it, because it involves a lot of walking and keeps me in shape.â&#x20AC;?

He grew up on the family farm east of Lampman. In his younger days, he spent some time in Edmonton before working with SaskTel in Regina.

Ludwig soon tired of the city, and returned to Lampman, where he took over the Lampman open line telephone exchange before SaskTel took it over.

This led to him starting at the mine in November 1976.

His experience in mining ranges from loading boxcars, oiling on draglines, to blasting and being a brakeman on the locomotive and a tire technician.

Now his new job (in addition to being a miner), has him leading City Hall. â&#x20AC;&#x153;Some of the issues we have before us is managing growth. We have a lot of growth in our city right now,â&#x20AC;? Ludwig said. â&#x20AC;&#x153;We have a lot of challenges associated with growth. Weâ&#x20AC;&#x2122;re working constantly with the government on aďŹ&#x20AC;ordable housing.â&#x20AC;? â&#x20AC;&#x153;Theyâ&#x20AC;&#x2122;ve got a few programs out now. One weâ&#x20AC;&#x2122;re looking at is the capital rent subsidy, a pilot

program.â&#x20AC;?

The city will also be seeking infrastructure money from the provincial and federal governments. â&#x20AC;&#x153;Hopefully through these programs, with the provincial and federal governments, it will alleviate the need to have to keep going the tax base.â&#x20AC;? â&#x20AC;&#x153;AďŹ&#x20AC;ordable housing is a big issue. Continued infrastructure needs â&#x20AC;&#x201C; roads, water mains, sewers, sidewalks.â&#x20AC;?

Housing is a key issue for Estevan, which has been a chronically tight market for several years, especially since the onset of the Bakken oil boom.

That, combined with the hundreds of workers taking part in the Boundary Dam carbon capture project, has meant rising rents, high housing prices and scant supply. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re spending $40,000 on a housing study to give insight,â&#x20AC;? he said. Itâ&#x20AC;&#x2122;s similar to a project Weyburn did in recent years. The money was approved in the last Estevan budget.

For several years, private development of a large parcel on Estevanâ&#x20AC;&#x2122;s northeast corner has been talked about, but has not come to fruition. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re getting closing to inking a deal with Essex Developments,â&#x20AC;? he said, referring to the developer. That parcel could result in hundreds of lots eventually becoming available.

Another company, Trimount Developments, has started development of residential property on the cityâ&#x20AC;&#x2122;s north side.

The new hotels are coming along, he added, opening up more accommodations.

One of Estevanâ&#x20AC;&#x2122;s limitations to development has been the ability to supply adequate water pressure, particularly on the north side of the city. The current construction of a new water reservoir on the west side should soon alleviate that constraint. â&#x20AC;&#x153;We can start looking north of the city, towards the truck bypass,â&#x20AC;? he said. Part of that eventual development will be industrial, but council and planning will need to make decisions as to where that will be.

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A few years ago, Estevan opened the Glen Peterson Industrial Park on the cityâ&#x20AC;&#x2122;s east side, now home to Canyon Technical Services, AcklandsGrainger, Regens Disposal and the Saskatchewan Energy Training Institute. However, the park is still largely empty. â&#x20AC;&#x153;We have more land available,â&#x20AC;? Ludwig said when asked about industrial land available for development. â&#x20AC;&#x153;Thatâ&#x20AC;&#x2122;s where we would like to see new players set up.â&#x20AC;?

Several companies have told Pipeline News they found that land to be pricey. Ludwig responded by saying the prices were comparable to Weyburn, adding, â&#x20AC;&#x153;We feel the price is fair, but if weâ&#x20AC;&#x2122;re not competitive, weâ&#x20AC;&#x2122;ll take a look at it, absolutely.â&#x20AC;? â&#x20AC;&#x153;Quite a few are setting up in the RM (of Estevan),â&#x20AC;? he noted, citing a development agreement with the RM. The city provides potable water to many of these sites.

He noted that development levies for places like Estevan and Weyburn are likely going up. â&#x20AC;&#x153;Our development levies havenâ&#x20AC;&#x2122;t changed for a number of years. Council will have to take a serious look. Regina raised theirs considerably.â&#x20AC;? â&#x20AC;&#x153;The costs will not be going down. Land prices in Saskatchewan have been increasing.â&#x20AC;?

One continuing frustration for the city has been the lack of progress on the truck route, which was announced in the 2008 provincial budget at the same time as Yorktonâ&#x20AC;&#x2122;s bypass. But while Yorktonâ&#x20AC;&#x2122;s route has had several phases built and opened, Estevanâ&#x20AC;&#x2122;s has yet to scratch dirt. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re frustrated the bypass isnâ&#x20AC;&#x2122;t in place yet.

But having said that, weâ&#x20AC;&#x2122;re working closely with the provincial government to make it happen.â&#x20AC;?

To that end, Ludwig said he met with Highways and Infrastructure Minister Don McMorris along with former mayor Gary St. Onge and city manager Jim PuďŹ&#x20AC;alt just before the election. â&#x20AC;&#x153;Theyâ&#x20AC;&#x2122;re in the acquiring state. Theyâ&#x20AC;&#x2122;ve upped their initial oďŹ&#x20AC;er considerably,â&#x20AC;? Ludwig said, referring to the price oďŹ&#x20AC;ered to landowners along the corridor. Several land acquisitions along the route have had an impact on what is seen as fair market price, much more than the $1,000 per acre that was initially oďŹ&#x20AC;ered. A 400-metre wide corridor is planned.

The landownerâ&#x20AC;&#x2122;s initial response was not favourable. ɸ Page B5

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B5

Estevanâ&#x20AC;&#x2122;s newly elected Mayor Roy Ludwig aĆŠended the grand opening of the new Microtel Inn & Suites just before being sworn in as mayor on Oct. 29.

Éş Page B4 â&#x20AC;&#x153;We are hoping the impasses as far as the land dealings go can be brought to a successful conclusion.â&#x20AC;? â&#x20AC;&#x153;We hope a deal can be made so they can move forward,â&#x20AC;? Ludwig said. â&#x20AC;&#x153;We feel itâ&#x20AC;&#x2122;s important. Our streets are suďŹ&#x20AC;ering as a result of the heavy truck traďŹ&#x192;c. It will alleviate costs on ďŹ xing a street, and a few years later, ďŹ xing it again.â&#x20AC;?

With SaskPower now shipping ďŹ&#x201A;y ash to the Estevan rail yard for shipment, he said the city is hoping to see mitigation money from the Crown to assist with its roads.

As for the Boundary Dam Unit 3 carbon capture project, he said, â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re very excited the federal government and province came together to make this happen, along with SaskPower.â&#x20AC;? â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;ve already got countries like China visiting, and itâ&#x20AC;&#x2122;s not even complete,â&#x20AC;? he said. â&#x20AC;&#x153;With this cutting edge technology, we will be the envy of all countries with coal power production.â&#x20AC;?

Ludwig hopes that SaskPower will choose to use the â&#x20AC;&#x153;clean coalâ&#x20AC;? technology on all its coal-ďŹ red generating units. It would mean continued production for the local coal mines and long-term stability for the power plants. â&#x20AC;&#x153;It means more jobs, continued jobs. The coal mines and power plants have been around for a long time. It means a long term commitment from SPC

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The new council has set as its main priority in 2013 the completion of existing projects, like the paving of the large parking lot areas around the principal recreational facilities in the centre of the city. In addition, he noted, â&#x20AC;&#x153;Thereâ&#x20AC;&#x2122;s a lot of paving that weâ&#x20AC;&#x2122;ve fallen behind on.â&#x20AC;?

Over the past year, City Hall has been sensitive to the idea that crude oil is being loaded onto rail cars from trucks in the Canadian PaciďŹ c railyard in the centre of Estevan. â&#x20AC;&#x153;We are the Energy City. I embrace the oil industry. They put a lot of money into our community. What weâ&#x20AC;&#x2122;re trying to do is, through dialog with CP and Cenovus, we are looking at other alternatives. For one thing, it is cramped for them to get in there. It is tight. Thereâ&#x20AC;&#x2122;s only room for so many cars, whereas, on a bigger siding, they could have much more production as far as loading. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re working with CP, weâ&#x20AC;&#x2122;re working with Cenovus, to ďŹ nd alternatives. â&#x20AC;&#x153;One of the alternatives we have suggested is City-owned land toward the landďŹ ll. We have land adjacent to the CP track at the landďŹ ll site. The land is there. We were looking at an arrangement where hereâ&#x20AC;&#x2122;s the land, you put the track in. Weâ&#x20AC;&#x2122;re still in discussions. â&#x20AC;&#x153;It could be a bigger siding for them, but they havenâ&#x20AC;&#x2122;t got back to us.â&#x20AC;?

Ludwig said oilpatch companies have been great corporate citizens, with lots of donations coming into the community from them.

B6

PIPELINE NEWS January 2013

Weyburn seeks to take away housing pinch point Â&#x201E; By Brian Zinchuk Weyburn â&#x20AC;&#x201C; With a four year mandate and an 87 per cent plurality of the vote, Weyburn Mayor Deb Button has her eye on growing her community.

Pipeline News spoke to her not long after the October election to see what her cityâ&#x20AC;&#x2122;s plans were with respect to the oilpatch and its needs.

Asked how the City of Weyburn plans to meet the needs of the energy industry, Button said, â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;ve been working hard at that already. Youâ&#x20AC;&#x2122;ll notice, if you paid any attention to election issues in Weyburn, part of the discussion was district planning. We have been working very closely with the RM of Weyburn, planning how we will develop around the city of Weyburn. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;ve also been very diligent with the housing advisory committee. We have two studies weâ&#x20AC;&#x2122;ve done. The ďŹ rst one the committee did was a needs assessment for the city of Weyburn. Obviously, the oil and gas industry has a huge impact on housing in our community. The second study was the business plan for housing. â&#x20AC;&#x153;Both of those, thereâ&#x20AC;&#x2122;s no way to measure their impact, truly. The ďŹ rst one we got, the needs and demands study, our committee opened it up and said,

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â&#x20AC;&#x2DC;What the heck is this? This is not what we were thinking we were buying.â&#x20AC;&#x2122; â&#x20AC;&#x153;As it turned out, as developers showed up, we started putting it into their hands and it was exactly what they needed. Weâ&#x20AC;&#x2122;ve had great success with developers coming in because of the needs and demands assessment we did.

Moving forward with the housing plan we now have, our housing has made great strides. We know where weâ&#x20AC;&#x2122;re going. We know where weâ&#x20AC;&#x2122;re developing.

We know how many houses and units will be put in the community in the next several years. We know what our target is and our goal.â&#x20AC;?

As for what those targets are, Button said, â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s longer than a four year plan.

Itâ&#x20AC;&#x2122;s in the hundreds. We know weâ&#x20AC;&#x2122;ve reached those targets. The community of Weyburn has opened up lots itself. We had 700 lots on paper three years ago.

Since then weâ&#x20AC;&#x2122;ve opened up some of that area. We now have private developers.

Weâ&#x20AC;&#x2122;ve annexed some land from the RM that are opening up more. Weâ&#x20AC;&#x2122;ll see more coming in the fall.â&#x20AC;?

Asked about the issues beyond housing, she noted, â&#x20AC;&#x153;Ebel Road (an industrial subdivision) is ďŹ lled up, whatâ&#x20AC;&#x2122;s developed of it. But thatâ&#x20AC;&#x2122;s just a portion of the plan. It loops and thereâ&#x20AC;&#x2122;s more to it. Weâ&#x20AC;&#x2122;re ready to open that up. â&#x20AC;&#x153;We are taking a look with our district planning. Maybe there is some development more suited to the RM. Certainly we would approach the RM to take that development. Thereâ&#x20AC;&#x2122;s some that would be more suitable to the city of Weyburn. Itâ&#x20AC;&#x2122;s not all about growth in our boundaries. Itâ&#x20AC;&#x2122;s about growth in our area.

More dirtwork is needed to be done on the Ebel Road project, expected to be initiated this spring. â&#x20AC;&#x153;Highway commercial may be an issue for us, but I donâ&#x20AC;&#x2122;t think weâ&#x20AC;&#x2122;ll be caught short. â&#x20AC;&#x153; The city has seen expansion in its hotel sector, including the recent rebuild of the Travelodge. Microtel has announced a new hotel for Weyburn. Button said, â&#x20AC;&#x153;I suspect by spring weâ&#x20AC;&#x2122;ll see movement on the land. Weâ&#x20AC;&#x2122;ve been in conversation with them for quite some time.â&#x20AC;?

That hotel will be near the Walmart.

As for other future developments, she said, â&#x20AC;&#x153;Thereâ&#x20AC;&#x2122;s lots of dirt-kickers always around. Weâ&#x20AC;&#x2122;re thrilled to have them and to show them the community.

Some materialize, some donâ&#x20AC;&#x2122;t.

She noted Weyburn is Saskatchewanâ&#x20AC;&#x2122;s second-fastest growing city, second only to Lloydminster, which is partially in Alberta. The census data is important in calculations of vacancy rates. â&#x20AC;&#x153;We know what our vacancy rate is moving forward, which will help us in our housing plans as well. Weâ&#x20AC;&#x2122;re looking at Habitat for Humanity. Our ministerial association, along with the city of Weyburn, is spearheading those projects. Weâ&#x20AC;&#x2122;re hopeful come spring or summer weâ&#x20AC;&#x2122;ll have a project underway. â&#x20AC;&#x153;With our population increase, weâ&#x20AC;&#x2122;ll now be on the radar for a bigger stores, chains looking at our communities. Itâ&#x20AC;&#x2122;s hard to get them to look at communities under 10,000. Thereâ&#x20AC;&#x2122;s a wish list in the community. A grocery store is No. 1. The community feels we can support another one,â&#x20AC;? Button said.

As for other issues, she said, â&#x20AC;&#x153;Certainly weâ&#x20AC;&#x2122;re seeing an increase with our police calls. I donâ&#x20AC;&#x2122;t believe itâ&#x20AC;&#x2122;s anything our members canâ&#x20AC;&#x2122;t handle at this point.

We know weâ&#x20AC;&#x2122;re just under what the provincial number is per call per member.

We may have to look in the future at adding more oďŹ&#x192;cers. It has big budget implications, of course. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re managing. Weâ&#x20AC;&#x2122;re doing alright. The community has really changed, I will say that. I donâ&#x20AC;&#x2122;t mean itâ&#x20AC;&#x2122;s changed from its core values; the values I appreciate and love. Whatâ&#x20AC;&#x2122;s at the heart of the community is the quality of life, and that hasnâ&#x20AC;&#x2122;t changed. But what has changed is the faces. You see a lot of diďŹ&#x20AC;erent faces. The demographics are changing considerably. ɸ Page B7

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PIPELINE NEWS January 2013

B7

“Moving forward with the housing plan we now have, our housing has made great strides.

We know where we’re going. We know where we’re developing. We know how many houses and units will be put in the community in the next several years. We know what our target is and our goal.”

Deb BuƩon was resoundingly re-elected to the posiƟon of mayor of Weyburn in October.

ɺ Page B6 “People will comment you could go to the grocery store and you knew everyone down the aisle. You could stop and talk. Now you go to the grocery store, and you don’t know everybody anymore. The demographics have certainly changed, and we’re reacting to that. Weyburn had the soft definition of the grey industry, more of a retirement community. We’re certainly not that anymore, and we’re aware of that.

“We’re expanding our parks. We’re expanding our spray parks – that will be two. We have a plan for a third possibly down the road, because we understand when families are looking for recreation, they’re looking for free and cheap. We need to keep our greenspaces vibrant. That’s something that is at the heart of the city of Weyburn. We love our walking paths, greenspaces and parks. We’re glad to move forward with those and keep our quality of life.”

Button noted there are two pinch points for business – labour and housing.

“I, as a mayor, can’t do much about labour, but I can affect housing. If you take away one of the pinch points, that’s our goal,” Button said in conclusion.

B8

PIPELINE NEWS January 2013

Pipeline apportionment drives rail demand

By Brian Zinchuk Calgary – With Enbridge having announced more pipeline apportionments in November, the pressure is on for oil producers to look at other alternatives to ship their product. That has been reflected in the differential between what the WTI prices is, and what they are actually getting.

On Dec. 7, January WTI was priced at $86.26 per barrel. However, Western Canadian Select, a Hardisty-based blend of conventional and oilsands production managed by Canadian Natural Resources, Cenovus Energy, Suncor Energy, and Talisman Energy, was fetching just $55.32, a differential of $31.75. Such differential hits hard.

Jarrett Zielinski, president and CEO of Calgary-based Torq Transloading, said, “It’s about as busy as it can get.”

Torq has set up a series of crude-by-rail transloading sites throughout Alberta and Saskatchewan in recent years.

“We’ve seen a big transition in the pace of business. I think, what we’ve seen over the past 20, 24 months has been people dipping their toes in.

It’s been a fundamental shift. Refiners, terminallers and large marketers have come in with their own rail cars and said ‘Hey, we want to take a much larger position, and we want to do so on a term basis.’

“That is what’s driving much of our development.”

At the company’s recently opened Southall lo-

cation near Bromhead, they launched with a three to five car a day range for loading capacity. “We are looking at a full build-out of that facility. We feel we’re easily within the 15,000 barrel a day range.

Currently we’re at 2,000 to 4,000 barrels a day. The demand continues to grow. People are looking at moving unit trains out of there.

“We’re looking at making that site big enough to accommodate 100 to 120 car trains.”

“The Midale spread from WTI is in the $23 range. There’s double the transportation cost by rail.

What we’re seeing is the end market development, meaning refiners and terminals, terminals-to-barge, pipeline terminals on the downstream side, we’ve seen them ramp up their rail offload capacity.

It’s all happening while thousands more rail tank cars are coming on the market. Zielinski said, “Our best estimate is about one-third to one-half of those are targeted towards Western Canada, on top of what’s already in this market.

“Those would be brand new builds.

“Those are coming online between now and a year from now.”

Southall currently has minimal infrastructure, with rail cars loaded directly from trucks. That will change.

“We anticipate putting tankage with a manifold there to load,” Zielinski said. “Our estimate is between 40,000 and 80,000 barrels. It could be more if the demand exists. It could be several tanks with multiple product types.

“The producers are facing shut-in right now,”

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he said, pointing to Enbridge’s mid-November apportionment of 18 per cent between its Line 4 and Line 67.

When such announcements are made, their phone starts ringing. “They look for alternatives.

We’re certainly one of them, as are our peers. At some of our facilities, we’re having to move to 24 hours.”

Unity is one example of round-the-clock operation.

“We certainly have plans to expand Unity.

“We’re looking for operators, specifically at Southall/Bromhead. We’d like to bring on more good people.

“We have several custody transfer transload meters in reserve in anticipation of the growth. We are looking at no less than two pipe-connect unittrain facilities for 2013. We will be operating in the Athabasca region in 2013.

“The rateability and scalability can in some cases increase once you disconnect from the trucks.

In Southall, we expect to truck-in volumes to the tankage. From there it will go to rail. " He quoted a J.P. Morgan report saying they expected tank car fleet to more than double in the next two years to 45,000 tank cars.

As for the next steps, he said, “The market needs to get bigger, and we intend to be a major player in that market and be at the forefront in that market, in a bigger scale.

“Eighteen months ago, it was difficult for me to get a call back from the majors, from the big guys. Now we get lot of calls back and lots of first calls.”

Crude-by-rail went from an alternative with potential downstream risk to a situation where “This is a downstream risk if we don’t get on the pipe.

“The pipe is now the downstream risk, not the rail. Our objective is to build it in scale and rateability.”

Rateability means that if the rail cars don’t show up, they can still put those barrels into storage.

Smaller producers, and even larger ones, aren’t equipped with rail cars, he said, but they can work with a marketer to help them.

The shipping cost differential between pipeline and rail on lighter and medium crude is around $13-$14, all-in. On heavier oil, like product from Cold Lake, the crude is shipped undiluted or under-diluted. “The economics get even more attractive,” Zielinski said, noting that 30 per cent diluent is no longer needed.

Heavy oil ships in tank cars that are insulated and equipped with heating coils. Steam is pumped into the coils at the delivery point to warm it.

“On top of the $32 discount, the spread between WTI and Brent is another $22. Maybe you’re not going to get Brent, but you’re going to get some adjusted basis of Brent, less transportation costs. There’s a big margin in there,” Zielinski said.

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PIPELINE NEWS January 2013

B9

More than just trucks: Clean Harbors in Arcola This frac heater can run its heaĆ&#x;ng units in parallel or series. Each heater is rated for seven million BTU. Brian Hagel is the area manager for Clean Harbors.

Â&#x201E; By Brian Zinchuk Arcola â&#x20AC;&#x201C; Since Clean Harbors established itself in Arcola a few years ago, the company has grown substantially. â&#x20AC;&#x153;The ďŹ&#x201A;eets have grown,â&#x20AC;? said Brian Hagel, area manager. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re running 25 units now.â&#x20AC;?

That includes steamers, vac trucks, combo units, water trucks, tank trucks, hot oilers, and one frac heater.

Hagel said he would really like to expand the frac heating side, noting they now have a local person heading up that service line. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;ve hit the ground running, trying to meet the demand. Weâ&#x20AC;&#x2122;re trying to get our foot in the door,â&#x20AC;? he said. â&#x20AC;&#x153;We have Clean Harbors Surface Rentals in Lampman,â&#x20AC;? Hagel noted. That came about from the acquisition of Peak Energy Services in June 2011. The name changed from Peak Energy Services, a Clean Harbors Company, in late November.

The surface rentals allow the company to build complete packages.

Noble Well Servicing is in the process of building a new shop right next to the Clean Harbors location. Clean Harbors will be leasing some space in that building, having already outgrown its shop built just a few years ago.

The company had 30 people working out of Arcola, but many of them come in on rotations, staying at the companyâ&#x20AC;&#x2122;s camp on-site. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s tough to ďŹ nd locals, but thatâ&#x20AC;&#x2122;s where our concentration is.â&#x20AC;? â&#x20AC;&#x153;Most of our guys work a 21 and 10 schedule. Weâ&#x20AC;&#x2122;ve got a huge recruiting team in Edmonton. We advertise locally, and in the Western Producer. Our recruiting department has a very long arm,â&#x20AC;? he said.

Camp The camp facility has expanded. Itâ&#x20AC;&#x2122;s an open camp. While Clean Harbors itself is the largest client, anyone can stay there.

As of early December there were 50 beds. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re going to open it up to 80,â&#x20AC;? he said. â&#x20AC;&#x153;Theyâ&#x20AC;&#x2122;re adding a rec facility and will expand the kitchen.â&#x20AC;?

Part of the camp is composed of ďŹ ve 50/50 shacks, used by Clean Harbors staďŹ&#x20AC;. The remainder of the camp is dormitory style.

The kitchen serves three meals a day and is open 24 hours. It oďŹ&#x20AC;ers a hot lunch, not simply sandwiches and soup.

The camp is managed separately from the other operations, but bookings can be done through the main oďŹ&#x192;ce.

Varied service lines One of things Hagel is focusing on is public awareness. â&#x20AC;&#x153;For being here for three years, thereâ&#x20AC;&#x2122;s still people who donâ&#x20AC;&#x2122;t know what we do,â&#x20AC;? he said, â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re not just the truck. We are the people, the lodging services, the surface rentals. We have a lot more service lines than people know.â&#x20AC;?

Some of those other lines include providing methanol for pipeline testing, tank rentals and specialized equipment for tank cleaning.

The Gama-Jet technology, he explained, â&#x20AC;&#x153;is a 3D tool that cleans every part of your tank, without a conďŹ ned space entry. You can put it though the top, through the door or manway, or through any four-inch ďŹ&#x201A;ange. We used it at Apache and PetroBakken with great success. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s a long piece of pipe, and the tool threads onto the end. You can run it at high pressure, low volume, or low pressure, high volume. Weâ&#x20AC;&#x2122;ve had it for quite some time.â&#x20AC;? â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s safer, cheaper, and faster. Thereâ&#x20AC;&#x2122;s zero tank entry to it.â&#x20AC;?

Hagel said the system was promoted alot in the Macklin/Provost area. He plans on doing the same in southeast Saskatchewan. ɸ Page B10

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B10

PIPELINE NEWS January 2013

Dry and wet steam available on steamer units

Clean Harbors has expanded its operaĆ&#x;ons in Arcola since establishing the locaĆ&#x;on three years ago. Its lodging services will soon have 80 beds capacity, while their local Ĺ&#x2021;eet now includes 25 units.

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Éş Page B9 Another product line is Zyme-Flow. â&#x20AC;&#x153;We are the only ones that have that chemical. Itâ&#x20AC;&#x2122;s an H2S, LEL, benzene and sulďŹ de inhibitor. Itâ&#x20AC;&#x2122;s used in conjunction with the Gama-Jet for tank cleaning. Itâ&#x20AC;&#x2122;s a cost-eďŹ&#x20AC;ective alternative to using ďŹ reďŹ ghting foam. It interacts with gases and totally neutralizes it.

Warming things up In the wintertime, a key portion of the business is keeping things warm.

That means the steamers are kept running 24 hours a day to be ready to go when called. They try to keep the hydrovacs and combo units inside.

Up until early December, he noted, â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;ve had a pretty mild winter.â&#x20AC;?

The company has expanded its steamer service. Hagel said, â&#x20AC;&#x153;We had three before. We have six now. They range from 750,000 BTU to 1.2 million BTU. They do dry steam and wet steam. We can run one or two dry steam wands at a time.â&#x20AC;?

All six units are rigged in a similar fashion.

Dry steam is accomplished via a separation pot. The water drops out in the steam pot and returns to the tank. The result is minimal water vapour. â&#x20AC;&#x153;We usually run at 150 to 160 Celsius. That seems to make the best dry steam. Dry steaming lets us be more eďŹ&#x192;cient while steaming. â&#x20AC;&#x153;The guys are fully trained and competent,â&#x20AC;? he said of the operators. They can send one or two men out on a job, or even run 24-hour crews, if needed.

The frac heater has a 5,000 litre fuel tank, and can run for 12 straight hours. It has two seven million BTU units. â&#x20AC;&#x153;We can run them in series or parallel. You can do two separate jobs or combine them.â&#x20AC;?

Glycol and methanol â&#x20AC;&#x153;We rent glycol mixture and 50/50 methanol mix for pipeline testing,â&#x20AC;?

Hagel said, pointing out the tank farm at the back of the compound. There are multiple tanks, and a ďŹ lter system to ďŹ lter returned product. The products are tested by Carlyle-based PureChem Services on a regular basis.

Explaining the process, he said, â&#x20AC;&#x153;Theyâ&#x20AC;&#x2122;ll say we need 100 cubes to test so many metres of pipe. Weâ&#x20AC;&#x2122;ll take a pressure truck with pressure testing equipment. Tank trucks haul I to the site. The pressure truck will ďŹ ll the line and bump it to test pressure. â&#x20AC;&#x153;The pipeline company will have a protocol for how long it sits. The line is dewatered, and itâ&#x20AC;&#x2122;s brought back here, ďŹ ltered, and readied for the next job.â&#x20AC;?

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ɸ Page B11

PIPELINE NEWS January 2013

B11

Being community-minded is key Brian Hagel points out the tank farm used for methanol and glycol. Hagel and his family moved to Carlyle this past summer, coming from Macklin.

Steamers are kept going throughout the day, ready to deploy.

All-inclusive deals available Éş Page B10 For larger scale jobs, they can utilize the tank rentals from Lampman. It can be more cost eďŹ&#x20AC;ective to rent a tank for some projects than to have several trucks on hand. â&#x20AC;&#x153;We can put an all-inclusive package together for the company, a one-stop shop,â&#x20AC;?

Hagel said. â&#x20AC;&#x153;We can haul our own water. Itâ&#x20AC;&#x2122;s the same as the hot oiler and frac heater. We can supply our own ďŹ&#x201A;uids and diesel fuel.â&#x20AC;? â&#x20AC;&#x153;If you phone use about a frac heater job, we can ďŹ ll your tanks with water, do the frac heating, steam your valves, do coil cleanouts and have a vac truck on site for bleeding lines.â&#x20AC;?

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Southeast Saskatchewan area manager Brian Hagel has been with Clean Harbors, in various forms, for 13 years. â&#x20AC;&#x153;I started in â&#x20AC;&#x2122;99 with Winterhawk Enterprises. I had one vac truck leased with them. When Winterhawk merged with Eveready Energy Services, I go on as a project manager/ ďŹ eld supervisor around 2006.â&#x20AC;?

He had moved to Macklin in 1993. â&#x20AC;&#x153;I was born and raised in Allan, Saskatchewan. My parents farmed there.â&#x20AC;?

He hauled crude for ďŹ ve years before getting into the vac truck business.

He became area manager for Macklin/ Provost in 2009. As part of taking on that job, he sold oďŹ&#x20AC; his truck assets so as to not be in a conďŹ&#x201A;ict of interest. â&#x20AC;&#x153;Macklin/Provost was one of their largest production services branches,â&#x20AC;? Hagel said.

This past summer Hagel, his wife and two kids came to southeast Saskatchewan. â&#x20AC;&#x153;We

moved to Carlyle, bought a house.â&#x20AC;?

He said thereâ&#x20AC;&#x2122;s a lot of nice people in Carlyle. â&#x20AC;&#x153;Everyoneâ&#x20AC;&#x2122;s waving at you, shaking your hand.â&#x20AC;? â&#x20AC;&#x153;I want to be a community-minded company â&#x20AC;&#x201C; donate to minor hockey, ball, the ďŹ re department. I was big on that in Macklin. To be successful, you have to be tight-knit. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s a key to success.â&#x20AC;?

Having worked in the heavy oil region for much of his career, Hagel noted, â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s a big change from heavy, sandy, gassy oil to here. This is light, full of sulďŹ des, and really waxy.

The hydrogen sulďŹ de concentrations are also much lower, but he still insists they take the extra precautions. â&#x20AC;&#x153;Do it by the book, do it safely,â&#x20AC;? he said.

In Macklin, Hagel found about half of their work was associated with service rigs. Thatâ&#x20AC;&#x2122;s different in southeast Saskatchewan, with service rig work being a lower fraction of the business.

B12

PIPELINE NEWS January 2013

More than just Ă&#x20AC;ve types of salad

Linda McKerchar has been a camp cook for 16 years. Early on, she realized itâ&#x20AC;&#x2122;s important to know a wide variety of salads. Sheâ&#x20AC;&#x2122;s currently the camp cook at Clean Harborsâ&#x20AC;&#x2122; camp in Arcola.

Arcola â&#x20AC;&#x201C; Linda McKerchar of Luseland now looks after cooking for the Clean Harbors camp in Arcola, but her history in the oilpatch is long and varied. â&#x20AC;&#x153;I used to be a trucker,â&#x20AC;? she said. â&#x20AC;&#x153;I hauled fuel for Esso

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and oil for Gibsons with my husband. â&#x20AC;&#x153;I was the ďŹ rst woman ever to work a ďŹ&#x201A;ushby in Lloydminster, Alberta. They said I wouldnâ&#x20AC;&#x2122;t last two weeks.

I lasted a few years.â&#x20AC;?

That stint was in the 1980s. She noted, â&#x20AC;&#x153;It was a lot slacker.

You only wore coveralls if you didnâ&#x20AC;&#x2122;t want oil on you.â&#x20AC;?

Linda and her husband, John, have been in Luseland for 12 years now. â&#x20AC;&#x153;Heâ&#x20AC;&#x2122;s a heavy equipment operator for Brooks Asphalt, so he doesnâ&#x20AC;&#x2122;t work at home either. Heâ&#x20AC;&#x2122;s working at Oyen now.â&#x20AC;?

These days Linda does rotations as a camp cook. Currently she does a three-weekon, one-week-oďŹ&#x20AC; rotation. With a husband who also works on the road, getting together can be a challenge. â&#x20AC;&#x153;I went to visit him in Oyen. Then he got shut down. I made him a moose supper and sent him on his way,â&#x20AC;? she said.

The couple have three daughters and ďŹ ve grandchildren, all of whom live in the Lloydminster area. One son-in-law has worked in the patch in surveying.

Sheâ&#x20AC;&#x2122;s been a cook for 16 years. â&#x20AC;&#x153;I started years ago because I didnâ&#x20AC;&#x2122;t know what I wanted to do. I asked my husband, â&#x20AC;&#x2DC;What do you think of camps?â&#x20AC;&#x2122;â&#x20AC;?

It was a quick

learning experience. â&#x20AC;&#x153;I didnâ&#x20AC;&#x2122;t realize there were so many types of salads.

What counts is salads, and how many combinations. I knew about ďŹ ve. Well, I got my eyes opened.â&#x20AC;?

Continually varying the menu is a challenge. â&#x20AC;&#x153;When you go into a new camp, you use all your specialities that you know will go well.

But after awhile, itâ&#x20AC;&#x2122;s challenging coming up with something different for months at a time.â&#x20AC;?

She gets some of her ideas from the Food Networksâ&#x20AC;&#x2122;s Diners, Drive-Inns and Dives. However, it often comes down to the basics. â&#x20AC;&#x153;I ďŹ nd mostly the guys like meat and potatoes. On the rigs, back in the days, a lot of the buys were hands from Saskatchewan,â&#x20AC;? she said, noting that was there preference.

Most of her camp cooking has been done during the winters. Arcola is about the same distance from home as work in northern Alberta. That can mean a not-so-fun drive to work to start a rotation. â&#x20AC;&#x153;Yesterday I wish I wasnâ&#x20AC;&#x2122;t driving,â&#x20AC;? she said. â&#x20AC;&#x153;I got snowed in.â&#x20AC;?

However, a little snow wonâ&#x20AC;&#x2122;t stop Linda. â&#x20AC;&#x153;I love it. I donâ&#x20AC;&#x2122;t think I could quit. Thereâ&#x20AC;&#x2122;s not many places where you get room and board.

You just walk over in the morning.â&#x20AC;?

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PIPELINE NEWS January 2013

B13

Husky Upgrader bucks reliability trend Â&#x201E; By Pat Roche (Daily Oil Bulletin) Lloydminster â&#x20AC;&#x201C; Husky Energy Inc.â&#x20AC;&#x2122;s heavy oil upgrader at Lloydminster on the Alberta/Saskatchewan border has reached record reliability levels, said Rob Peabody, Huskyâ&#x20AC;&#x2122;s chief operating oďŹ&#x192;cer. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re now achieving about 97 per cent eďŹ&#x20AC;ective capacity utilization of the upgrader, up from about 90 per cent a few years ago,â&#x20AC;? he told Huskyâ&#x20AC;&#x2122;s investor day conference with analysts in Toronto on Dec. 4.

Peabody didnâ&#x20AC;&#x2122;t oďŹ&#x20AC;er further speciďŹ cs, but the company disclosed in its third quarter results that throughput in the three months ended Sept. 30 averaged 81,600 bbls a day, up from 75,600 bbls a day in the third quarter of 2011. Throughput includes diluent returned to the ďŹ eld.

A planned turnaround was completed at the upgrader in the second quarter and it later achieved record monthly output, the company said.

Feedstock for the upgrader is heavy oil from northeastern Alberta and western Saskatchewan, and bitumen from Huskyâ&#x20AC;&#x2122;s Tucker oilsands project, which is 30 kilometres northwest of Cold Lake, Alberta.

An analyst asked how the company achieved a 97 per cent utilization rate when its peers have been running at much lower rates. â&#x20AC;&#x153;We have a pretty consistent feedstock coming in from both the Alberta gathering system and the Saskatchewan gathering systems. That makes a world of diďŹ&#x20AC;erence,â&#x20AC;? Peabody said.

Secondly, he said the company has strived over the last two years to improve reliability. â&#x20AC;&#x153;Everybody on that site is committed to getting safe and reliable operations. There was a lot of hard work that went into it.â&#x20AC;?

Citing one example of a change, he said upgrader metrics that used to be looked at weekly or monthly are now monitored hourly. â&#x20AC;&#x153;And you can see a lot more about whatâ&#x20AC;&#x2122;s going on in the facility when youâ&#x20AC;&#x2122;re in real time looking at performance metrics of the individual

units,â&#x20AC;? he said. â&#x20AC;&#x153;And that has allowed us to catch problems earlier, get onto them faster and avoid shutdown situations.â&#x20AC;?

Husky CEO Asim Ghosh suggested the improvement is â&#x20AC;&#x153;part of the larger cultural transformationâ&#x20AC;? being promoted within the company. He suggested the emphasis is on performance more than planning. â&#x20AC;&#x153;We strategize for three days in the year and execute for 362.â&#x20AC;? â&#x20AC;&#x153;We are trying to get a lot more predictable as a company than we have in the past,â&#x20AC;? Ghosh said.

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B14

PIPELINE NEWS January 2013

Stick with McMillan calendar in 2013

By GeoďŹ&#x20AC; Lee Regina â&#x20AC;&#x201C; The Mayans messed up. The world didnâ&#x20AC;&#x2122;t end Dec.

3D

21, 2012 with the expiry of their calendar to the relief of Energy and Resources Minister Tim

McMillan.

There will be another sale of Crown petroleum and natural

MAINTENANCE Cell numbers: 483-8024, 483-7024, 483-8148

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gas dispositions will be held on Feb 4, 2013 â&#x20AC;&#x201C; according to the McMillan calendar.

That sale could top the ďŹ nal 2012 sale of Crown petroleum and natural gas and oil sands rights in December that generated $11.5 million for the province, pushing total revenues for the year to $105.7 million.

That total fell way short of the $248 million for 2011 â&#x20AC;&#x201C; which

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was only the fourth best on record for land sales revenues.

The bragging rights for the December 2012 sale pertain to an industry bid average of $598 per hectare for oil and gas rights, which is more than double the $218 per hectare received by Alberta in their last sale of oil and gas rights.

The December sale also featured ďŹ ve oil sands special exploratory permits north of the Primrose Lake Air Weapons Range, two of which received acceptable bids. â&#x20AC;&#x153;It is encouraging that more than $1 million in bonus bids was received for two of the oil sands permits that were oďŹ&#x20AC;ered in this sale,â&#x20AC;? said Minister Responsible for Energy and Resources Tim McMillan. â&#x20AC;&#x153;In addition to a bonus bid, these permits require minimum

work commitment expenditure to be spent in exploration over the ďŹ ve-year term of the permits. â&#x20AC;&#x153;The province is cautiously optimistic that the results of this exploratory work will provide further insight into the potential of the resource in the province.â&#x20AC;?

The December sale included 89 lease parcels that brought in $8.9 million in bonus bids, two petroleum and natural gas exploration licences that sold for $1.6 million, and two oil sands special exploratory permits that received $1 million.

The Weyburn-Estevan area received the most bids with sales of $6.1 million. The Lloydminster area was next at $2.6 million, followed by the Swift Current area at $1.8 million and the Kindersley-Kerrobert area at $982,890. ɸ Page B15

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PIPELINE NEWS January 2013 Éş Page B14 The highest price for a single parcel was $1.6 million. Scott Land & Lease Ltd. acquired this 1,327-hectare exploration licence south of Gull Lake.

The highest price on a per-hectare basis was $8,412. Stomp Energy Ltd. bid $136,188 for a 16-hectare lease parcel east of Lloydminster.

Weyburn-Estevan Area (numbers rounded oďŹ&#x20AC;) The top purchaser of acreage in this area was Prairie Land & Investment Services Ltd., who spent $1.6 million to acquire two lease parcels.

The highest price paid for a single lease in this area was $1.1 million by Prairie Land & Investment Services Ltd. for a 1,036 hectare parcel situated 13 kilometres east of the Oungre RatcliďŹ&#x20AC;e Beds Pool, three kilometres south of Oungre.

The highest dollar per hectare in this area was received from Absolute Land & Lease Ltd. which paid $5,124/hectare for a 32.37 hectare parcel located 3 kilometres west of the Openshaw Frobisher Beds Pool, 30 kilometres west of Rockglen.

Lloydminster Area The top purchaser of acreage in this area was Scott Land & Lease Ltd. that spent $1.1 million to acquire one lease parcel, one exploration licence and two oil sands special exploratory permits.

The top price paid for a single lease in this area was $338,733 by Prairie Land & Investment Services Ltd. for a 259 hectare parcel situated 2 kilometres north of the Mervin Waseca Sand Oil Pool, three kilometres north of Turtleford.

The highest price paid for a single licence in this area was $62,564 by Scott Land & Lease Ltd. for a 2,331 hectare block situated 35 kilometres

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north of Glaslyn.

The highest dollar per hectare in this area was received from Stomp Energy Ltd, who paid $8,411/hectare for a 16.19 hectare parcel located within the TangleďŹ&#x201A;ags Mannville Sands Oil Pool, 30 kilometres east of Lloydminster.

Swift Current Area The top purchaser of acreage in this area was Scott Land & Lease Ltd. that spent $1.5 million to acquire one exploration licence.

The top price paid for a single lease in this area was $112,500 by Jarrod Oils Ltd. for a 65.15 hectare parcel situated adjacent to the Antelope Lake North Success-Roseray Sand Oil Pool, 20 kilometres north of the Town of Gull Lake.

This is also the highest dollar per hectare in this area at $1,727/hectare.

The top price paid for a single licence in this area was $1.5 million by Scott Land & Lease Ltd. for a 1,327.37 hectare block situated partially within the Covington Upper Shaunavon Oil Pool, 10 kilometres south of the Town of Gull Lake.

Kindersley-Kerrobert Area The top purchaser of acreage in this area was Scott Land & Lease Ltd. that spent $277,763 to acquire one lease parcel.

The top price paid for a single lease in this area was $277,763 by Scott Land & Lease Ltd. for a 64.75 hectare parcel situated within the Whiteside Ribstone Creek and Milk River Gas Pools, 15 kilometres northwest of Kindersley.

The highest dollar per hectare in this area was received from Windfall Resources Ltd., who paid $6,263/hectare for a 16.29 hectare parcel located within the Luseland Viking Sand Oil Pool, 30 kilometres northwest of Kerrobert.

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B16

PIPELINE NEWS January 2013

New gym attracts oilÀeld clientele Taralyn French spent the last summer and fall working with PetroBakken in Estevan.

Now she’s opened up her own gym in Arcola with the help of her parents, Ralph and Colleen French. On top of that, she’s going back to the University of Regina to conƟnue her educaƟon and kinesiology degree program.

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Arcola – With some space available in her dad’s shop in Arcola, Taralyn French saw an opportunity.

On Dec. 3, that opportunity was realized, with the opening of No Limits Fitness Centre, in Arcola.

Prior to that French worked in administration at PetroBakken’s Estevan office. She will also be returning to the University of Regina in January for her second year of an education and kinesiology program. She took the most recent semester off from school.

The 19-year-old had been attending North Idaho College on a volleyball scholarship, but found that her credits wouldn’t transfer to Canadian schools. Thus she shifted to the U of R. “Dad had the space. I like to work out,” said Taralyn. Her parents, Ralph and Colleen French, are co-owners in the venture. You might recognize the name from fluid-hauling firm, R. French Transport, based in Forget.

“We mentioned it to my friends.

They said it was a good idea. Everyone thought it was awesome.”

Work started last June. The facility is on two stories, with much of the work-out equipment downstairs, and a studio and cardio area upstairs.

There are eight cardio machines and 10 cable machines, in addition to free weights.

Just two days after opening, Taralyn said there had been lots of oilfield interest. “Lots of people on service rigs, lots of people from Alberta,” she said. Some stay at the Clean Harbors camp, others at the nearby Chaparral Inn. Some companies offer fitness benefits, she noted. “It works well with this,” she said.

The gym will offer 24-hoursa-day, seven-days-a-week access to members, who will be provided with a key.

While Taralyn is back at school, personal trainer Laurie James will look after the new gym. She could be seen taking her two sons through a cardio workout on Dec. 4. Part of that workout was an “agility ladder," a cloth ladder around which a person quickly moves their feet in and out of the different squares. Think of it as a fast moving game of hopscotch, but with faster moving feet and less hopping.

Taralyn will be home on weekends to look after the gym. “I do like to help people,” she said, adding she liked working with children as well.

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PIPELINE NEWS January 2013

B17

Synthetics make a difference Estevan â&#x20AC;&#x201C; When it gets cold, be sure to match your lubricants to the temperature. And synthetics do make a diďŹ&#x20AC;erence.

Thatâ&#x20AC;&#x2122;s the message from Terry Nistor, owner of Nistorâ&#x20AC;&#x2122;s Farm Service Ltd., the Shell Lubricants dealer in Estevan and Regina. Heâ&#x20AC;&#x2122;s been in the lubricant business for a long time. â&#x20AC;&#x153;I started when I was 19 or 20, driving a fuel truck for Shell,â&#x20AC;? he said. â&#x20AC;&#x153;I did that for six years and took over in Fort Quâ&#x20AC;&#x2122;Appelle, then Kelliher, Indian Head, Regina, Moose Jaw, Findlater, Weyburn and Estevan.â&#x20AC;?

However, when Royal Dutch Shell bought out Shell Canada in 2007, they got out of commercial wholesale fuel sales, and their cardlock division was sold to Flyng J, now Pilot Flying J. They stayed in the lubricant business, however, and asked Nistor if he would take care of their wholesale market in the area. He chose Estevan and Regina and the remaining locations were shut down.

Nistor manages the Regina Pilot Flying J cardlock as well. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s busy. In Regina, itâ&#x20AC;&#x2122;s agriculture.

Thereâ&#x20AC;&#x2122;s lots of oilďŹ eld, trucking, construction. We do a fairly big industrial business. â&#x20AC;&#x153;Synthetic oil lowers your pour point. Itâ&#x20AC;&#x2122;s a manufactured, manmade oil. The stability is

better. It doesnâ&#x20AC;&#x2122;t break down as quickly. It lasts longer. â&#x20AC;&#x153;It increases oil change intervals from 5,000 to 10,000 kilometres. On tractors, semis, you have longer intervals, but you still need to change your air ďŹ lters, and do your chassis lubrication.â&#x20AC;?

And, most importantly at this time of year, â&#x20AC;&#x153;It starts better in winter, too. â&#x20AC;&#x153;Your pourability is better than a mineral oil. The more ďŹ&#x201A;uid that oil is, the easier it is to start the vehicle.â&#x20AC;?

Nistor personally used to have three semis hauling grain. At -30 C, he said, â&#x20AC;&#x153;We were taking out starters, things werenâ&#x20AC;&#x2122;t turning over. We switched to 0W40 full synthetic, and it started like summer.â&#x20AC;? â&#x20AC;&#x153;When do you see the most engine wear?

At start-up. If the oil is too heavy, and itâ&#x20AC;&#x2122;s cold, thereâ&#x20AC;&#x2122;s no lubrication on those bearings.â&#x20AC;?

He went on, â&#x20AC;&#x153;The recommendation now is 5W-40 full synthetic year round for diesel engines. A full synthetic oil will stay cleaner, longer, than a regular mineral oil. Some highway tractors are running up to 50,000 kilometres on synthetic, but I wouldnâ&#x20AC;&#x2122;t recommend that.â&#x20AC;? â&#x20AC;&#x153;When you start, stop and are idling, you change it more often compared to a highway tractor going from here to Vancouver.â&#x20AC;?

One frac company, he noted, changes oil

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in their trucks every 250 hours. Considering those trucks can run 24 hours a day, that makes for frequent changes.

For heavy equipment, he said some just go with a lighter hydraulic oil. â&#x20AC;&#x153;The industry here uses ISO 22 hydraulic oil yearround. It makes a big diďŹ&#x20AC;erence.â&#x20AC;? â&#x20AC;&#x153;A lot of people donâ&#x20AC;&#x2122;t understand. If youâ&#x20AC;&#x2122;re doing a lot of work in the winter, itâ&#x20AC;&#x2122;s in your best interest to change it. Gravel trucks use 22 all year round. It doesnâ&#x20AC;&#x2122;t get hot. It goes up and goes down.â&#x20AC;?

In some cases, specialty oils are required. Nistor said Shell makes a non-conductive hydraulic oil, called Tellus Arctic Oil, that does not conduct static electricity. Itâ&#x20AC;&#x2122;s useful for items like cranes in reďŹ neries.

When it comes to grease, he said, â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;ve got summer grease, and weâ&#x20AC;&#x2122;ve got winter grease.

Summer grease doesnâ&#x20AC;&#x2122;t want to go in.

But he noted, â&#x20AC;&#x153;You can buy a winter grease with a -45 C pour point. Itâ&#x20AC;&#x2122;s pumpable, so it goes. â&#x20AC;&#x153;A big one we sell is aviation helicopter grease with a -60 C rating. A lot of the oil-

patch uses it on external valves on tank farms.

Price doesnâ&#x20AC;&#x2122;t seem to be a factor. Itâ&#x20AC;&#x2122;s the right grease for the right application,â&#x20AC;? Nistor said. â&#x20AC;&#x153;We donâ&#x20AC;&#x2122;t recommend you use a winter grease in the summer. It just runs out.â&#x20AC;? â&#x20AC;&#x153;In Estevan, the oilpatch is probably 75 per cent of our business.

In the last four years, because of the oil sector, business has deďŹ nitely increased. There are lots of opportunities to grow your business,â&#x20AC;? Nistor concluded.

Terry Nistor owns Nistors Farm Service Ltd.

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B18

PIPELINE NEWS January 2013

Invicta uses rail to reach markets Continued development drilling for light oil at Lucky Hills near Kindersley, Saskatchewan, helped Invicta Energy Corp. increase third quarter 2012 production to 387 boe per day from 145 boe per day during the comparable period last year.

Output for the nine months ended Sept. 30, 2012, was also improved as the company averaged 320 boe per day versus 114 boe per day for the prior year period.

Invicta said improved income and

funds ďŹ&#x201A;ow from operations for the three and nine months ended Sept. 30, 2012, was due to the companyâ&#x20AC;&#x2122;s continued successful drilling programs at Lucky Hills and the related operating netbacks achieved by these oil wells.

Revenues for both the three and nine months ended Sept. 30, 2012, were both improved year-over-year.

Early in the third quarter, the company completed and placed on production four wells from its second quarter program. In September, four

wells of the second-half 2012 Kindersley (Lucky Hills) drilling program were drilled. Subsequent to Sept. 30, 2012, an additional six wells were drilled, all at a 100 per cent success rate.

The completion and multi-stage fracturing of the majority of these wells began after the quarter end due to availability of services. As of Nov. 21, all wells had been completed and placed on production. During 2012, the company had drilled a total of 21 (11.1 net) wells on this property.

Based on the last 10 wells of its recent drilling program, Invicta said that drilling costs have been reduced as a result of increased eďŹ&#x192;ciencies. The company estimates that the all-in on stream costs of these horizontal wells are averaging $900,000 to $950,000.

The oil production rates of the most

recent program have exceeded internal forecasted average type curve.

Invictaâ&#x20AC;&#x2122;s two facilities were expanded in the third quarter and an additional one is being constructed to handle the additional production volumes from the recent drilling program. It was anticipated that one additional well would be drilled at 100 per cent working interest prior to the end of 2012 on lands acquired in the second quarter. Plans are currently underway for an active ďŹ rst-half 2013 program.

Invicta noted that since April 2012, it has transported up to 60 per cent of its production by rail in order to increase netbacks and mitigate a portion of the current diďŹ&#x20AC;erentials in Edmonton Light to West Texas Intermediate. This process is expected to continue into 2013.

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PIPELINE NEWS January 2013

B19

PetroBakken's current production at 51,000 boepd PetroBakken Energy Ltd. announced on Dec. 10 that production in early December had reached approximately 51,000 boepd (based on field estimates), up 6,000 boepd since early November as the company continued to execute on its 2012 capital plan.

Production growth primarily came from the Bakken and Cardium business units, which are its most active areas.

Since the end of the third quarter, the company drilled 67 net wells and placed 76 net wells on production. This includes 26 net wells drilled and 33 net wells placed on production in the Bakken business unit, 28 net wells drilled and 35 net wells placed on production in the Cardium business unit, 12 net wells drilled and eight net wells placed on production

in the Conventional business unit, and one net well drilled in its new play areas.

For the remainder of December, the company planned to bring on production 21 net wells, eight in each of the Bakken and the Cardium business units and five in the conventional business unit.

PetroBakken recently completed the Brazeau facility in the Cardium and tied-in a portion of the planned wells to this facility, which added approximately 1,200 boepd of production. The company expected the completion of its tie-in program and optimization of this facility would add an additional 2,000 boepd of production prior to year-end.

The results of these activities, together with the natural declines attributable to the production base,

will have put the company on pace to achieve its 2012 exit rate production guidance of 52,000 to 56,000 boepd.

The recently announced acceleration of the company’s 2013 capital program is underway and its continuous drilling program, which currently consists of 11 drilling rigs operating – six in the Cardium, two in the Bakken, one in conventional and two in the Swan Hills resource play – should provide a steady inventory of new wells to bring onstream in early 2013.

New additions to the company’s facility infrastructure and pipeline networks should also alleviate some seasonal production losses during spring breakup due to shut-in production and road bans, the company said.

B20

PIPELINE NEWS January 2013

PIPELINE NEWS January 2013

B21

Jackie White is part of the management team of Stampede Drilling, with a focus on safety.

Stampede Drillingâ&#x20AC;&#x2122;s ÄŽrst rig went to work in late November.

Crude Oil & Saltwater Transfers Hot Fresh Water

Centrifuges Devin Hala, leĹ&#x152;, Bill Devins and David Shewchuk grab a Timmies in the rig managerâ&#x20AC;&#x2122;s shack. Devinâ&#x20AC;&#x2122;s says that people are the most important part of a rig, not the iron.

Shale Shakers Shaker Screens Drilling Fluids 805 Government Road S Weyburn, SK 306â&#x20AC;˘842â&#x20AC;˘0307

Photos by Brian Zinchuk

The workers make the difference Estevan â&#x20AC;&#x201C; The iron might be shiny, but itâ&#x20AC;&#x2122;s the men who make the diďŹ&#x20AC;erence.

Indeed, talking to Bill Devins, of Stampede Drilling on Nov. 23, a couple days before their ďŹ rst rig was about to go to work on its ďŹ rst hole, itâ&#x20AC;&#x2122;s hard to get him to say much about the

â&#x20AC;˘ OilĂ&#x20AC;eld Maintenance â&#x20AC;˘ Welding â&#x20AC;˘ OilĂ&#x20AC;eld Construction â&#x20AC;˘ Pipeline Construction â&#x20AC;˘ Facility Construction â&#x20AC;˘ Mainline Pipeline Construction â&#x20AC;˘ Safety Sales & Service â&#x20AC;˘ Environmental Services â&#x20AC;˘ Horizontal Directional Drilling â&#x20AC;˘ Picker Trucks â&#x20AC;˘ Pile Driving â&#x20AC;˘ Hydro vac â&#x20AC;˘ Gravel and Sand Hauling â&#x20AC;˘ Skid Packages â&#x20AC;˘ Lease Preparation â&#x20AC;˘ Insulating â&#x20AC;˘ Major Facility Construction â&#x20AC;˘ Gas Plant Turnarounds

Carson Energy Services works with clients from 13 locaĆ&#x;ons across Alberta and Saskatchewan, serving a footprint covering both those provinces and southwest Manitoba. â&#x20AC;˘ Saskatoon â&#x20AC;˘ Swift Current â&#x20AC;˘ Emerald Park â&#x20AC;˘ Lampman â&#x20AC;˘ Virden â&#x20AC;˘ Halbrite â&#x20AC;˘ Alida â&#x20AC;˘ Wainwright â&#x20AC;˘ Lloydminster â&#x20AC;˘ Calgary â&#x20AC;˘ White City â&#x20AC;˘ Regina â&#x20AC;˘ Carlyle

Access To Fresh Water Available

equipment. Instead, he stressed the quality of their staďŹ&#x20AC;. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;ve got the best men in southern Saskatchewan. A rigâ&#x20AC;&#x2122;s a rig.

Weâ&#x20AC;&#x2122;ve got the best fellows, without a doubt. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re going to lead the industry in safety.

Theyâ&#x20AC;&#x2122;re going to follow us.â&#x20AC;? â&#x20AC;&#x153;All of our fellows are going to be trained above and beyond,â&#x20AC;?

Devins said.

Rig manager David Shewchuk said they had no trouble ďŹ nding people.

Some of the safety elements include a

lockout on the catwalk controls on the drill ďŹ&#x201A;oor. â&#x20AC;&#x153;You have to deactivate the lockout so you canâ&#x20AC;&#x2122;t bump the control.

You have to actively disengage the lockout,â&#x20AC;?

Devins said.

This is done by holding down a button on the left side of the control box. Let go of the button, and the controls are deactivated.

The rig is equipped with two 455 kilowatt Caterpillar C15 gen sets, and two F-1000 mudpumps driven by C32 Caterpillar engines. Each mudpump package has a Rouse

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single-speed clutch. The engine packages come from Weyburnâ&#x20AC;&#x2122;s Southern Industrial/Rouse Industries.

The drawworks is a Ratmaster 850 with an 800 horsepower Caterpillar C18 engine. It has a Caterpillar electric automatic transmission.

The rig managerâ&#x20AC;&#x2122;s shack came from Denby Trailer Ltd. of Weyburn.

The doghouse is a little diďŹ&#x20AC;erent in that while it has a slideout,

that slideout does not enclose the drillerâ&#x20AC;&#x2122;s station. Instead, it slides outward, expanding the size of the doghouse.

Thereâ&#x20AC;&#x2122;s a cabinet inside full of safety equipment.

The telescopic double derrick was built

by Do-All Industries, along with the substructure and buildings. Assembly took place in the Do-All Estevan yard.

The companyâ&#x20AC;&#x2122;s second rig is expected to be ready in early 2013.

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The company will focus on southeast Saskatchewan, but will also venture into southwest Manitoba. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re going to let our actions speak. The men are what make the rig. You get the right people, they run well,â&#x20AC;?

Devins concluded.

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B22

PIPELINE NEWS January 2013

Janice Harris and Jim Harris are siblings who both work for the family business, Harris OilĮeld ConstrucƟon.

Harris OilÀeld Construction has offered a variety of services for 33 years

Strength In Our Resources #6 - 461 King St. • Estevan, SK 637-3460 www.petrobakken.com

Estevan – Harris Oilfield Construction has been working in the southeast Saskatchewan oilpatch for 33 years, and continues to be a strong family business.

The company is owned by Doug and Bertha Harris, as well as their son Jim. Their daughter Janice takes care of dispatch and some of the management duties along with her brother Jim. Doug and Bertha have stepped back a bit after decades running the firm.

The company has 11 staff members, including the owners.

The fleet is made up of five vac trucks, one pressure truck, one oil truck and two steamers. There’s also a semi and a tri-axle tanker.

The shop’s appearance from the road is deceptive. After having been expanded to the rear of the property twice over the years, it’s a lot deeper than one would expect. But when your specialty is dealing with fluids, a warm shop is important.

Most of the company’s work is relatively close to Estevan. They don’t venture into Manitoba.

The company’s been operating steamers for quite a while, said Janice. They see use in thawing lines and valves, and the occasional fire hydrant for the city.

During the summer that equipment gets used for washing and tank cleaning.

“I’ve been on them, but it’s not my favourite,” she said. “I’m a vac truck operator. But we’ve all done it.”

The vac trucks see use in a variety of applications. “We do anything from septic to oil,” she said.

They do septic work, but not portapotties, she added.

Such equipment can be in high demand, with the typical, “I need you right now” phone calls. Janice’s response? ɸ Page B23

PIPELINE NEWS January 2013 Chrystal Schad wields a steamer wand towards the camera. The steamer operator works with Harris OilĮeld ConstrucƟon Ltd. The 22-year-old did pipeline work in BriƟsh Columbia for four months before returning to Estevan.

Photo by Brian Zinchuk

ɺ Page B22 “Everybody says that. I’ll do the best I can.”

Harris Oilfield Construction has been CORcertified for at least five years.

The company is a dropoff centre for waste oil, such as used crankcase oil from farm motors, trucks, and the like. They also collect waste oil from a few sites in Estevan.

Jim Harris takes care of their crew truck, primarily working with his son, Ryan, with occasional help from others.

The crew truck does facility work, pipelines, and all sorts of other work, he noted. “One hundred per cent of the work is for CNRL,” he said.

“We float all over – Frobisher, Steelman, Lampman, Innes, Viewfield. They like smaller guys.

We know the area, and they don’t have to train you.

I started working on my own crew when I was 21 for Gulf at Lampman.

“I’ve been doing it since I was 15 years old, working in the summer painting pumpjacks,” Jim said. He’s now 45, and has spent his career with the family firm. Janice rejoined the company 11 years ago on a steady basis.

In the back of the shop one finds the an IMC stock car, which is no surprise, since Jim is a fixture at the Estevan Motor Speedway.

“I’ve been racing since ’81,” he said.

His car is #17, while his daughter, Alyssa, drives #17A. Ryan drives #18.

Jim notes his father, Doug, has been supportive.

“Dad’s all over these cars when we’re not here. He’ll know exactly what rim has been bent, and what tire has been cut.”

CLIFF NANKIVELL TRUCKING LTD.

Kalvin Nankivell President OfÀce: (306) 462-2130 Fax: (306) 462-2188

Claudia Mullis Vice-President Box 123 Kisbey, SK S0C 1L0 nankivelltrucking@signaldirect.ca

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B23

B24

PIPELINE NEWS January 2013

The new Microtel Inn & Suites in Estevan will be the prototype for dozens more hotels to come.

Photo by Brian Zinchuk

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Estevan, SK: Branch OfĂ&#x20AC;ce 306-634-5617 Lloydminster, SK 306-825-3363 Kindersley, SK 306-463-6462 Swift Current, SK 306-773-5626

Estevanâ&#x20AC;&#x2122;s Microtel a prototype for a wave of new hotels Estevan â&#x20AC;&#x201C; The cityâ&#x20AC;&#x2122;s latest hotel, the Microtel Inn & Suites by Wyndham, is the prototype for a wave of new hotels in Canada. The plan is for a total of 75 Microtels to open in Canada over the next 25 years.

The new hotel adds 79 rooms to the Estevan market, one thatâ&#x20AC;&#x2122;s seen continued pressure over the years even though numerous additional hotels having opened in the past three years.

The grand opening on Oct. 29 was unfortunately aďŹ&#x20AC;ected by poor weather, both in Calgary and Estevan. A plane chartered for dignitaries planning to attend had to be cancelled.

Catherine Burdett, director of marketing for MasterBUILT Hotels, acted as mistress of ceremonies. MasterBUILT Hotels is a joint venture between Superior Lodging Corp. â&#x20AC;&#x201C; one of Canadaâ&#x20AC;&#x2122;s largest and most successful hotel developers known for establishing the Super 8 and Wingate by Wyndham brands in Canada â&#x20AC;&#x201C; and Jayman MasterBUILT, one of Canadaâ&#x20AC;&#x2122;s premier residential builder developers over the past three decades.

She said there were 337 days of construction, 42,000 square-feet of ďŹ&#x201A;oor covering, over 100,000 square-feet of drywall, over 1,000 gallons of paint, and a little over $8 million in capital investment in the Estevan operation.

John Henderson, director of support, Microtel Inn & Suites, spoke of the brandâ&#x20AC;&#x2122;s expansion, saying, â&#x20AC;&#x153;The best is yet to come here in Canada.â&#x20AC;? â&#x20AC;&#x153;It gives us great pleasure to be able to open our very ďŹ rst Microtel by Wyndham in Estevan and provide the community with modern, high quality accommodation that meets the demands of todayâ&#x20AC;&#x2122;s business and leisure traveler,â&#x20AC;? said Eric Watson, VP of development. â&#x20AC;&#x153;With a booming economy and strong demand for quality lodging in the region, Estevan was a natural choice to launch our Microtel by Wyndham concept in Canada.â&#x20AC;? ɸ Page B25

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PIPELINE NEWS January 2013

B25

ɺ Page B24 He spoke of the company’s plans to start construction of a similar hotel in Weyburn in the spring. Lloydminster’s Saskatchewan side is also on the agenda for 2013 as well. Blackfalds and Fort McMurray are also planned in the same year.

Estevan’s hotel is the prototype. However, Timmins, Ont., will be the next to open.

There are currently two other Microtel Inn & Suites by Wyndham open in Canada in Woodstock and Parry Sound, Ont., both of which represent the brand’s older design concept.

Newly elected Estevan Mayor Roy Ludwig welcomed the new hotel.

A $5,000 donation was made to the St. Joseph's Hospital Foundation, which was accepted

by Roxy Blackmore.

There are six types of rooms in the Microtel. A basic standard has one queen-sized bed, while an upgraded standard has a queen-sized bed, fridge and microwave. There are similar rooms except with two beds available. There are accessible suites and business class. All rooms have queen-sized beds.

The Microtel adds something not seen in its competitors: a water slide. But while its pool, water slide and hot tub are highlights, the key thing is the parking lot full of work trucks.

The hotel offers complimentary deluxe hot continental breakfast, coffee, high-speed wireless Internet, weekday newspaper, indoor water park with hot tub, fitness centre, parking and business centre. Guests also have access to valet cleaning service, a copy/fax / printing service, and a locker room for oilfield workers to store their gear.

Microtel opened its Estevan location on Sept.

24. Manager Al Simoneau said business has been good, and it has picked up as it got colder. They have been running close to full during the week, often selling out two or three days a week. Weekends are slower, but that depends on what sports are going on in town, like hockey tournaments.

The hotel has a staff of 23, for the most part foreign worker who are permanent residents originating from Ukraine and India. Four of the Ukrainians have husbands who work on the rigs.

Simoneau noted that the clientele is mostly corporate and government. “Oilfield is at least 50 per cent of it.”

Eric Watson, leŌ, of Microtel Inn & Suites, leŌ, presents Roxy Blackmore of the St. Joseph's Hospital FoundaƟon with a cheque for $5,000, a donaƟon upon the hotel’s opening.

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B26

PIPELINE NEWS January 2013

Mission Hotshot has seĆŠled into a permanent locaĆ&#x;on now, with a shop and yard on Estevanâ&#x20AC;&#x2122;s Devonian Street. To owner Clinton Gibbons, it means theyâ&#x20AC;&#x2122;re here to stay.

Mission Hotshot secures permanent home

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Estevan â&#x20AC;&#x201C; Three years ago, Mission Hotshot Service Inc. was a ďŹ&#x201A;edgling outďŹ t, with two trucks and a lot of dreams. This past fall the company found a permanent home in an Estevan industrial park, and is continuing to grow.

As far as locations go, it would be hard to ďŹ nd a better one for a hotshot operation which spends a large portion of its time picking up loads along the supply store row on Estevanâ&#x20AC;&#x2122;s Kensington Avenue. Located on Devonian Street, they are right beside Weatherford Independent Pump Co., one of their frequent stops, and just behind TS&M. â&#x20AC;&#x153;We go there to pick up the pump ďŹ rst and then the rod string. On the way back, we drop oďŹ&#x20AC; the old rods elsewhere and then the pump is dropped oďŹ&#x20AC; last,â&#x20AC;? said Clinton Gibbons, who owns the outďŹ t with his wife Nicole. â&#x20AC;&#x153;Rod strings around about 50 to 60 per cent of our work.â&#x20AC;?

Itâ&#x20AC;&#x2122;s typical that whenever rods are pulled on a well, the pump comes out too, for replacement or servicing.

When Pipeline News did a ride-along with Mission Hotshot in February 2010, they had two trucks and two trailers. â&#x20AC;&#x153;I have six trucks and 11 trailers now,â&#x20AC;? Gibbons said. â&#x20AC;&#x153;The locationâ&#x20AC;&#x2122;s great. That was a selling feature, and the size of the yard, too. â&#x20AC;&#x153;Thereâ&#x20AC;&#x2122;s potential to build, and potential for a pipe yard for customers.â&#x20AC;?

They also have eight people â&#x20AC;&#x201C; six full-time and two-part time staďŹ&#x20AC;, and theyâ&#x20AC;&#x2122;re looking for another full-timer. Thus, it was time to have a more permanent home.

Like many start-ups, they had been operating out of the Gibbonsâ&#x20AC;&#x2122; home.

Having a shop means more overhead, but it also means things can be ďŹ xed inside. â&#x20AC;&#x153;Which is nice,â&#x20AC;? Gibbons said. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s better than my front yard, freezing, hoping the neighbours donâ&#x20AC;&#x2122;t drive over my legs sticking out.â&#x20AC;?

Prior to moving into the new location in September, they did have a quarter-acre yard north of the Estevan Comprehensive School. But with so many trailers, there was hardly room to move around. â&#x20AC;&#x153;It was just open ground. We barely ďŹ t eight trailers in there. Weâ&#x20AC;&#x2122;ve been looking for a nearly a year before we bought,â&#x20AC;? he said.

They had looked at various options, including building or buying. He had considered setting up on an acreage outside of Estevan, but that would have added travel time. ɸ Page B27

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PIPELINE NEWS January 2013

B27

â&#x20AC;&#x153;

In buying a shop, youâ&#x20AC;&#x2122;re part of the community. Youâ&#x20AC;&#x2122;re here to stay. A lot of hotshots, a truck and trailer, come and go.

â&#x20AC;?

- Clinton Gibbons, owner, Mission Hotshot Service Inc.

Éş Page B26 "We looked long enough, we knew that was right. I was shown it Wednesday, and we said yes Friday morning. I do my best thinking while driving, and I and my wife went to Minot on the Thursday.

Nicole was key in the hunt for a new home for the business, he noted. â&#x20AC;&#x153;I envisioned it. I didnâ&#x20AC;&#x2122;t think it would happen that fast,â&#x20AC;? Gibbons said when asked about whether, three years ago, he thought they would be where they are today. â&#x20AC;&#x153;Full time guys are averaging about 200 hours a month. Some months are more, some less.

This summer was slower for most service businesses in southeast Saskatchewan compared to the previous year, with the drilling rig count down about 40 rigs province-wide compared to the record setting pace of the summer of 2011. â&#x20AC;&#x153;October was approaching average. We had a slow August. Our customer base is getting bigger, so weâ&#x20AC;&#x2122;re seeing less ďŹ&#x201A;uctuations from boom to bust.â&#x20AC;? â&#x20AC;&#x153;The toughest job is hiring people,â&#x20AC;? Gibbons added.

The company is working on putting together a beneďŹ ts package for staďŹ&#x20AC;, a key recruiting tool. â&#x20AC;&#x153;You want to try to create a good work environment â&#x20AC;&#x201C; something healthy, something to stick around for,â&#x20AC;? he said.

As for their human resources strategy, Gibbons noted, â&#x20AC;&#x153;Attitude is the biggest one. I want someone with a good attitude. Skill set is second. I deďŹ nitely look for people who ďŹ t in with what Iâ&#x20AC;&#x2122;ve got. You can teach, but you canâ&#x20AC;&#x2122;t change attitude.â&#x20AC;? â&#x20AC;&#x153;I just hired a guy from Davidson. Heâ&#x20AC;&#x2122;s got a willingness to learn, and a get â&#x20AC;&#x2122;er done attitude.â&#x20AC;?

Some prospective employees said they would come to Estevan if housing was provided, but he doesnâ&#x20AC;&#x2122;t want to get into the accommodations ďŹ eld.

The reason for having nearly twice as many trailers as trucks is that trailers are often left on site for the client for anywhere from a day to a week. â&#x20AC;&#x153;We take trailers out and leave them on location for a day or two out there. We just picked one up that was on location for a week,â&#x20AC;? Gibbons said.

Six are now equipped with pintle hitches so customers can more easily move them around. â&#x20AC;&#x153;Theyâ&#x20AC;&#x2122;re not as smooth to pull, but theyâ&#x20AC;&#x2122;re way more convenient for the customer,â&#x20AC;? he said.

Gibbons concluded, â&#x20AC;&#x153;In buying a shop, youâ&#x20AC;&#x2122;re part of the community. Youâ&#x20AC;&#x2122;re here to stay. A lot of hotshots, a truck and trailer, come and go.â&#x20AC;?

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B28

PIPELINE NEWS January 2013

Wayne Clemens operates the controls of â&#x20AC;&#x153;Daisy.â&#x20AC;? X-Treme Towingâ&#x20AC;&#x2122;s heavy duty wrecker.

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Pickers a handy addition to towing outĂ&#x20AC;t Estevan â&#x20AC;&#x201C; With a ďŹ&#x201A;eet of ďŹ ve semis pulling tankers, Wayne Clemens couldnâ&#x20AC;&#x2122;t ďŹ gure out why Estevan didnâ&#x20AC;&#x2122;t have a heavy-duty tow truck. So he decided to get one.

Two years later, the tankers are gone, and towing and pickers are the focus.

X-Treme Towing oďŹ&#x20AC;ers the heavy-duty towing, and has the only semi wrecker outside of Weyburn, Regina or Brandon in the region. That keeps them going, and has led to an expansion into light-duty towing as well. â&#x20AC;&#x153;I was at Weatherford for 12 years. Before that, I was in construction,â&#x20AC;? Clemens said. â&#x20AC;&#x153;I farmed, ran winch trucks, did a bit of everything.â&#x20AC;?

At Weatherford, he was a service tech for, as he described, â&#x20AC;&#x153;anything in the ďŹ eld.â&#x20AC;?

The road to towing started with tankers. â&#x20AC;&#x153;I bought some tank trucks. I had ďŹ ve trucks doing down the road,â&#x20AC;? he said. â&#x20AC;&#x153;I knew a couple of guys that were hauling and decided to get into it.â&#x20AC;?

That start was in 2007, just when the Bakken boom started. He got out of tankers one-and-a-half years ago. â&#x20AC;&#x153;When you needed a tow truck, there was none around,â&#x20AC;? Clemens said. He bought his own, and now works with the local semi dealers when they need a tow.

The heavy-duty wrecker is alternatively known as the â&#x20AC;&#x153;Big Orange Unitâ&#x20AC;? or â&#x20AC;&#x153;Daisy.â&#x20AC;? Itâ&#x20AC;&#x2122;s a stretched Kenworth, single steer, tandem truck with a 35-ton wrecker. The truck came out of California. â&#x20AC;&#x153;Nobody could ďŹ gure out why there wasnâ&#x20AC;&#x2122;t one in town,â&#x20AC;? he said. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re it, in the southeast corner. The nearest one is Weyburn. Other than that itâ&#x20AC;&#x2122;s Regina or Brandon.â&#x20AC;? ɸ Page B29

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PIPELINE NEWS January 2013 Éş Page B28 â&#x20AC;&#x153;We havenâ&#x20AC;&#x2122;t advertised or pushed it too much,â&#x20AC;? he said.

Eventually they added a smaller duallie tow truck to handle light-duty towing. â&#x20AC;&#x153;The little truck is never shut oďŹ&#x20AC;,â&#x20AC;? he said. â&#x20AC;&#x153;The big one goes on an almost daily basis.â&#x20AC;?

They now take calls from CAA as well as some roadside assistance services.

Heâ&#x20AC;&#x2122;s considering getting another tow truck in between the two trucks. The Estevan area has a lot of heavier trucks around â&#x20AC;&#x201C; service bodies, knuckle-picker dualies, and the like. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re pulling trucks up to 19,000 pounds,â&#x20AC;? Clemens said. The big truck can be overkill, but it can be a bit much for the small one.

In the meantime, their in-between-sized loads are often handled with a gooseneck tip trailer with a big winch. Itâ&#x20AC;&#x2122;s pulled by a pickup.

As for the really big loads, like service rigs, they leave that to local trucking ďŹ rms.

This past fall Discovery Channel ran a series called Highway Thru Hell, proďŹ ling a heavy-duty towing outďŹ t based in Hope, B.C. which covers the Coquihalla highway. Itâ&#x20AC;&#x2122;s brought a lot of prominence to the towing business. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s a good show. Thereâ&#x20AC;&#x2122;s a few things we do diďŹ&#x20AC;erently,â&#x20AC;? Clemens said.

One of the standout pieces of equipment of Jamie Davis Heavy Rescue, the company featured in Highway Thru Hell, is its rotator heavy wrecker.

That allows its wrecker arm to rotate to the side, making the machine much more ďŹ&#x201A;exible for diďŹ&#x192;cult tows. But X-Treme Towing can trump that. â&#x20AC;&#x153;We have three pickers, a 30-tonn, 35-ton, and 28-ton knuckle boom,â&#x20AC;? Clemens said.

One is a tandem steer, tandem drive, another is a tandem steer, tridrive. â&#x20AC;&#x153;They are just like big rotators,â&#x20AC;? he said.

The knuckle picker, he said, will be used as much as possible in recoveries. In late November they used it to ďŹ sh a small car out of the Souris River near Estevanâ&#x20AC;&#x2122;s Woodlawn Golf and Country Club. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re kind of unique because of the pickers,â&#x20AC;? Clemens said. â&#x20AC;&#x153;I saw a lot of them going down the road, and thought, â&#x20AC;&#x2DC;Maybe we should have them, too.â&#x20AC;&#x2122;â&#x20AC;?

Those pickers arenâ&#x20AC;&#x2122;t sitting, waiting for a call, however. Pickers, and more importantly, picker operators, are in high demand in southeast Saskatchewan. There are three semis hauling pipe and matting, and the aforementioned three pickers. One semi often assists with towing, doing things like pulling the trailer of a stricken semi.

As such the pickers are actually part of a side company, X-Treme Picker Service. â&#x20AC;&#x153;They go steady. Theyâ&#x20AC;&#x2122;re never around the shop. We specialize in rig moving. Weâ&#x20AC;&#x2122;ve got a few dozen service rigs we take care of,â&#x20AC;? he said.

However, if they do need the pickers for a diďŹ&#x192;cult towing or recovery job, they are available. In their yard in late November, for instance, one was used along with â&#x20AC;&#x153;Daisyâ&#x20AC;? to lift a burnt-out farm grain truck, allowing a ďŹ&#x201A;atdeck semi trailer to be backed under it.

Thereâ&#x20AC;&#x2122;s also a loader and skid-steer loader in the ďŹ&#x201A;eet. The large loader is not only useful for moving pipe, but in ďŹ&#x201A;ipping semis or acting as an anchor. â&#x20AC;&#x153;A lot of times, you need an anchor to turn it,â&#x20AC;? he said.

B29

X-Treme Towing recently moved to a new shop adjacent from their previous location on the west side of Estevan. Behind the shop is an impound yard, a key aspect of the towing business. â&#x20AC;&#x153;We do impounds for the city police, SGI and RCMP,â&#x20AC;? he said.

The companyâ&#x20AC;&#x2122;s service area is southeast Saskatchewan, and just a little into Manitoba. â&#x20AC;&#x153;We haul into Regina and up to 17 km into Manitoba. We permit for some Manitoba loads. We do lots of CarnduďŹ&#x20AC; and Oxbow,â&#x20AC;? he said.

Asked whatâ&#x20AC;&#x2122;s the best advice for a driver should they ever need a two, Clemens said, â&#x20AC;&#x153;The main thing is to have something to hook onto, and not just for the oilďŹ eld. Weâ&#x20AC;&#x2122;re not going to pull oďŹ&#x20AC; someoneâ&#x20AC;&#x2122;s front end. â&#x20AC;&#x153;Be ready for the unexpected.â&#x20AC;?

As for tire chains, he noted, â&#x20AC;&#x153;A lot of times, chains just get you in that much deeper.â&#x20AC;?

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B30

PIPELINE NEWS January 2013 Rick Tourand shows a cut-away composite boot, leĹ&#x152;, and a boot meant for the coldest weather, right.

Composites in the cold Â&#x201E; By Brian Zinchuk Estevan â&#x20AC;&#x201C; These are not your fatherâ&#x20AC;&#x2122;s workboots.

When you went out on your ďŹ rst job, your father might have told you itâ&#x20AC;&#x2122;s important to remember your steel-toed boots. At least it used to be. These days, especially in winter, steel-toes are going the way of the Dodo bird.

The big shift in protective work footwear, especially for cold weather, is composites, according to Rick Tourand, owner of Ronâ&#x20AC;&#x2122;s the Work Wear Store.

The company has locations in Weyburn, Estevan and Carlyle.

Composites have become the trend in all sorts of industries. From new airliner designs like the Airbus A380 to your kidâ&#x20AC;&#x2122;s hockey stick, their physical 35(6685( 758&. 6(59,&(6 properties of light weight and strength have seen them supplanting traditional 6 H U Y L Q J 6 R X W K H D V W 6 D V N D W F K H Z D Q materials. In footwear, heat conductivity, or lack thereof, is a key point.

DQG 6RXWKZHVW 0DQLWRED â&#x20AC;&#x153;Composites are the current trend in CSA footwear. Theyâ&#x20AC;&#x2122;re lighter, stronger, and do not conduct cold,â&#x20AC;? said Tourand. â&#x20AC;&#x153;Steel conducts the cold.â&#x20AC;?

That makes a big diďŹ&#x20AC;erence to the pipeliner standing on a cold, windy right-of-way all day or a derrickhand up the mast.

About a dozen years ago, there was a brief ďŹ&#x201A;irtation in the industry with ďŹ breglass-toed boots, but they didnâ&#x20AC;&#x2122;t pan out and were quickly abandoned. The current composites are not ďŹ breglass. They are a material called epoxy resins, according to Tourand. â&#x20AC;&#x153;In a workboot, probably 70 per cent is still steel-toe and plate. In the winter boots, we probably sell 70 per cent composite toe and plate. Thatâ&#x20AC;&#x2122;s the way P P DQG P WUXFNV the industry is going. +285 3+21( 180%(5 â&#x20AC;&#x153;They ďŹ nd the toes donâ&#x20AC;&#x2122;t get as cold, especially the ones who stand most

of the day. Thermographic testing has been done on these. It proves it doesnâ&#x20AC;&#x2122;t conduct the cold.â&#x20AC;?

Thermographic testing is essentially imaging 35, 28 30 & 23 â&#x20AC;˘ 45,â&#x20AC;˘35, 23 Ton TonPickers Pickers showing heat, such as infrared imaging. â&#x20AC;˘ Bed Truck â&#x20AC;˘ Bed Truck Tourand noted composite boots are also quite â&#x20AC;˘ Pipe Custodian a bit lighter in comparison to steel-toed boots. He â&#x20AC;˘ Pipe Custodians said, â&#x20AC;&#x153;A few ounces diďŹ&#x20AC;erence, over two feet, over â&#x20AC;˘ Pipe Racks â&#x20AC;˘ Pipe Racks thousands of steps a day, adds up.â&#x20AC;? â&#x20AC;˘ Rig Matts â&#x20AC;˘ Rig Matts When customers come in, they will typically â&#x20AC;˘ Flarestack Sales & Rentals say, â&#x20AC;&#x153;I need winter boots.â&#x20AC;? â&#x20AC;˘ Flarestack Sales & Rentals â&#x20AC;˘ Tubing Trailers Tourand responds by asking, â&#x20AC;&#x153;What type of â&#x20AC;˘ 400â&#x20AC;˘ 400 BBLBBL Test Tank Sales Test Tank Sales&&Rental Rental work do you do? What exactly are you doing? Are â&#x20AC;˘ Wellhead Sales & Installation â&#x20AC;˘ Wellhead Sales & Installation you up the mast as a derrickhand? â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s a subjective thing,â&#x20AC;? he said. â&#x20AC;&#x153;You can see Oilfield Trucking & Rentals â&#x20AC;˘ Backhoe & Skid Steer â&#x20AC;˘ Backhoe & Skid Steer the same boot, same height, same weight, same â&#x20AC;˘ Steamer â&#x20AC;˘ Steamer John job, and one person will need a -100 C boot, and John â&#x20AC;˘ Crew Truck â&#x20AC;˘ Test Separators another will need -50 C. Jason â&#x20AC;˘ Test Separators There has been a large trend in recent years â&#x20AC;˘ Work Strings Fax 842-1707 â&#x20AC;˘ Work Strings toward polyurethane boots. â&#x20AC;&#x153;These are the hottest â&#x20AC;˘ Light Towers things in oilďŹ eld footwear,â&#x20AC;? Tourand said, holding â&#x20AC;˘ Light Towers gibsonwelding10@hotmail.com â&#x20AC;˘ COR CertiĂ&#x20AC; ed up samples of BaďŹ&#x192;n and Cofra boots. â&#x20AC;˘ COR Certified P.O. BOX 926, WEYBURN, SK S4H 2L2 Polyurethane boots, unlike older style rubber boots, are resistant to invert and distillates used in some drilling. The older boots would simply disintegrate over time. ɸ Page B31

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PIPELINE NEWS January 2013

B31

Rick Tourand, right, assists a customer in Įnding a hardhat liner.

ɺ Page B30 “Nothing would stand up. Polyurethane stands up,” Tourand said.

“The guys got onto them and started wearing them year-round, winter and summer. I sell fewer regular workboots because of these.”

In the wintertime, workers will often use a quilted sock known as a Bama sock. They not only provide additional warmth, but wick moisture away and keep the feet dry.

“They say it’s like air conditioning for your feet,” he said.

The lining inside of the boot has thousands of microscopic cells that provide insulation. “They trap the body head. That’s what keeps you warm in the winter,” Tourand explained.

“These are my No. 1 style of boot in all three stores. Three years ago, they weren’t a hot item. We sold over 40 pairs (in Estevan) in one week. It’s incredible.”

Often it’s a case of “You see one, you want one.” New workers see what their co-workers are wearing, and quickly adopt that style of footwear. Yet it will often be territorial. The crew of one rig might be wearing one style, and a crew of another rig working just down the road will be wearing a second style.

One of the coldest-rated boots Ron’s carries is the “derrick boot.” It’s rated to -100 C. “I’ve never had a guy complain about cold feet in those. If you get cold feet, it’s too cold to be working.”

Another new trend in footwear, and most work attire for that matter, is safety striping with highly reflective materials. “Five years ago, it was never an issue. Now everything is safety striped – coveralls, hoodies, high vis., footwear,” Tourand said.

When it comes to your more traditional style of workbook, the eight-inch lace-up boots, composite boots are becoming much more common as well.

With a Sympatex lining (an Dupont insulation product similar to 3M’s Goretex), composite toe and plate, Tourand noted, “This is as warm as any Sorel boot out there.”

The physical properties of composites also allow for a more box-shaped toe, as opposed to the traditional concaved steel. That box shape is more in keeping with the actual shape of the foot, Tourand noted.

“That doesn’t even feel like a hard toe,” he said.

Sole design has changed too. The old style, which would have an outer-sole stitched to a mid-sole, has been replaced by injection-moulded soles. By being one-piece, it prevents sole separation and reduces the chances of water penetration.

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PIPELINE NEWS January 2013

Fired up to heat frac water

This large heat exchanger enƟrely Įlls the back of this semi-trailer. Ryan Saxon, leŌ, and Ed Lukye are partners in Rapid HeaƟng Ltd.

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Estevan – Rapid Heating Ltd. fired up in the spring of 2012 with the intention of firing up their burners.

The Estevan-based company is owned by Ed Lukye and Ryan Saxon. They started operations last spring, and had their equipment on display at the Redvers Oil Showcase.

The company’s focus is frac water heating.

“Out there they have to warm water for warming the chemical,” said Lukye.

Water is typically heated to between 20 and 55 C. Their heat exchanger is eight feet across and 18 feet long. “This unit has 20 million BTU and a capacity of 4,500 litres per minute,” he said. It has two Riello burners.

“They suck up 110 gallons of diesel fuel per hour,” he said, which would explain the two large tanks at the front end of the trailer.

Additionally, they have a 15 horsepower high pressure boiler for steaming purposes. “We don’t have to wait for another steamer,” said Saxon, adding having both on the same unit is not common.

“We can troubleshoot instead of waiting for a high-pressure boiler.

The setup has two operators, but Lukye notes, “I’m there to help them. “ Saxon also helps out as needed.

He noted not only can they heat fresh water, but salt water as well, as the inside of their heat exchanger is stainless steel.

Their system can do two tanks at once, but they prefer to do one at a time.

The time it takes to heat a tank varies, but it averages around 30 to 35 minutes for a 400-bbl. tank, taking it from 3 C to 55 C. Uninsulated tanks in winter have to be heated to a higher temperature because they lose more heat overnight.

“If it’s too cold, they can’t frac with it,” Lukye said.

The heating is done before the actual frac crew sets up. They are not present when the frac job is underway.

As a new entrant to a marketplace that has seen a number of frac heaters pop up in recent years, Lukye noted, “It’s crowded when it’s not busy. But there’s people waiting when it’s busy.”

The company is licensed for Manitoba, Alberta, British Columbia and Saskatchewan.

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PIPELINE NEWS January 2013

B33

This area is the new cabinet-making area, as the old space used for that purpose will be the new home to drywall storage, as well as addiĆ&#x;onal Ĺ&#x2021;oor space for the building supply store. Harry Laurent is the owner of Arcola Building Supplies and Harry Laurent ConstrucĆ&#x;on, as well as the townâ&#x20AC;&#x2122;s mayor.

Accommodations are key in Arcola Arcola â&#x20AC;&#x201C; Thereâ&#x20AC;&#x2122;s one big issue for the town of Arcola when it comes to addressing the concerns of the oilpatch, and thatâ&#x20AC;&#x2122;s housing. â&#x20AC;&#x153;Our thing here is living accommodations,â&#x20AC;? said Harry Laurent, the recently acclaimed mayor of Arcola. Laurent returned to the position after a three year hiatus which he spent relocating his two businesses â&#x20AC;&#x201C; lumberyard Arcola Building Supplies and Harry Laurent Construction Inc., to the new industrial subdivision along the north side of Highway 13. The second company specializes in building shops for the oilpatch.

In the past three years, Arcola has developed and ďŹ lled two residential subdivisions. A third subdivision with 17 lots for sale has just opened up. The ďŹ rst two subdivisions absorbed 12 and 16 homes respectively. â&#x20AC;&#x153;SaskEnergy and SaskPower just completed installations. Weâ&#x20AC;&#x2122;ve had an oďŹ&#x20AC;er to purchase one lot already,â&#x20AC;? he said.

The prices will range from $45,000 to $50,000 apiece. Each lot is approximately 150-feet by 125-feet in size. â&#x20AC;&#x153;Theyâ&#x20AC;&#x2122;re nice sized lots."

The price has climbed over the years. Lots for the ďŹ rst subdivision had gone for $17,000 to $21,000.

Itâ&#x20AC;&#x2122;s a big change in rural Saskatchewan, when not too long ago, small towns were selling lots for a loonie, just to attract people to come to their town and increase the tax base. Laurent personally bought the lot his house is now on for $2 in 2008. To be fair, they put about $20,000 into improving the lot, but thatâ&#x20AC;&#x2122;s still a far cry from what a lot in Estevan goes for. â&#x20AC;&#x153;We have a developer speaking with the town about starting a multi-unit dwelling,â&#x20AC;? Laurent said. â&#x20AC;&#x153;Heâ&#x20AC;&#x2122;s kind of looking at rentals.â&#x20AC;?

Another company has broken ground on two fourplexes. Laurent expects they will be ready to go in the spring.

His old lumberyard location, on Main Street, had three lots. They have been purchased and are being considered for either a two or three storey apartment building. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s huge,â&#x20AC;? Laurent said of the developments underway. â&#x20AC;&#x153;Saskatchewan just went crazy. If we get these apartments here and the patch dried up, you still have the service industry,â&#x20AC;? he said, pointing out that new wells still need to be maintained, and ďŹ&#x201A;uids hauled from them. ɸ Page B34

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PIPELINE NEWS January 2013 Harry Laurent is the recently acclaimed mayor of Arcola. He returned to the posiĆ&#x;on after a three-year hiatus. His twin ventures, Arcola Buildings Supplies, and Harry Laurent ConstrucĆ&#x;on Ltd., have been busy in the meanĆ&#x;me.

Back in the saddle Éş Page B33 As for constructing the new housing, Laurentâ&#x20AC;&#x2122;s business built one in the earlier subdivisions, but after that he said, â&#x20AC;&#x153;I went to shops.â&#x20AC;?

Commercial shops are a lot simpler, and have considerably fewer headaches, he noted.

As for Arcola Building Supplies, Laurent said, â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s a very busy store.â&#x20AC;?

He took Pipeline News on a tour of the new facility, which in just three years, they have outgrown. An expansion is underway. The cabinet-making side is being shifted to an addition, and its former place will be used for drywall storage and additional store ďŹ&#x201A;oor space. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s a good time to own a lumberyard in this part of the province. Itâ&#x20AC;&#x2122;s a good time to be in business in any aspect.â&#x20AC;?

The growth of the oilpatch has been the driver, but he noted, â&#x20AC;&#x153;One of my favourite slogans is, â&#x20AC;&#x2DC;oil can make you money, but it can cost you money.â&#x20AC;&#x2122;â&#x20AC;?

By that he means local businesses have to try to match wage increases in the oilpatch, lest their employees jump ship. â&#x20AC;&#x153;Iâ&#x20AC;&#x2122;d hire three more in a heartbeat, but you canâ&#x20AC;&#x2122;t get â&#x20AC;&#x2122;em,â&#x20AC;? he said. â&#x20AC;&#x153;Kids out of high school can start at $26 an hour, and I start at $14.â&#x20AC;?

Pad drilling A series of new wells has sprouted up just a few miles east of Stoughton.

Photo by Brian Zinchuk

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B35

Tire changes snowball at Kal Tire Lloydminster â&#x20AC;&#x201C; A growing concern for safe winter driving in the oil and gas industry combined with an early snowfall whipped up a powerful storm of work orders for winter tires this season at Kal Tire in Lloydminster.

January and February are vacation months, but it was all hands on deck during a crazy pre-season rush in October that began to slow down the week of Nov. 19 when manager Adam Mountney caught a break.

Mountney said he and assistant manager Colby Moan were both chipping in with sales and service work during the crunch period and was glad to have a minute to talk about their ordeal by ďŹ re. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;ve had about six straight weeks of winter rush â&#x20AC;&#x201C; lots of tire putting on,â&#x20AC;? said Mountney who has been managing Kal Tire stores for 10 years including the past three years at the busy Lloydminster shop. â&#x20AC;&#x153;In October and November, we pretty much do two months in one. Itâ&#x20AC;&#x2122;s pretty much the meat and potatoes of our year. â&#x20AC;&#x153;In the morning, weâ&#x20AC;&#x2122;ve had 10 to 15 people waiting outside an hour before we open at 7:30 a.m. to get in ďŹ rst because we are ďŹ rst come, ďŹ rst served.â&#x20AC;?

In the busiest four week period, the Lloydminster shop sold more than 1,300 tires mostly to oilďŹ eld company ďŹ&#x201A;eets from pickups to heavy oil haulers.

They also installed about 400 customer car and trucks tires in early winter driving conditions. â&#x20AC;&#x153;Safety is the driving force behind oil company ďŹ&#x201A;eets switching to snow,â&#x20AC;? said Mountney. â&#x20AC;&#x153;I know up in Fort McMurray and area, you canâ&#x20AC;&#x2122;t even go up there unless you have winter tires on now on a lot of lease sites. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s better for traction and safety. The biggest concern is safety for their people on the road.â&#x20AC;?

Kal Tire is Canadaâ&#x20AC;&#x2122;s largest independent tire dealer serving retail, commercial and mining customers with up to 19 brands for car and light truck tires.

In Lloydminster, the Bridgestone Blizzak is Kal Tireâ&#x20AC;&#x2122;s best selling tire for cars and light trucks. â&#x20AC;&#x153;It seems thatâ&#x20AC;&#x2122;s a real well known name. Everybody feels thatâ&#x20AC;&#x2122;s the best one. Itâ&#x20AC;&#x2122;s got a real soft block and lots of snipes in the tread,â&#x20AC;? said Mountney. â&#x20AC;&#x153;Every year within two weeks of winter they will be sold out. I had guys order them in April to make sure they got them when the snow ďŹ&#x201A;ies.â&#x20AC;?

Some pickup ďŹ&#x201A;eets and consumers are also asking for studded tires from Nokian for performance and safety in the icy road conditions prevalent in the Lloydminster area. â&#x20AC;&#x153;We ďŹ nd itâ&#x20AC;&#x2122;s more icy than snowy in Lloydminster. Especially when they go for the studs, thatâ&#x20AC;&#x2122;s what they are looking for â&#x20AC;&#x201C; the starting and stopping versus the lateral stability,â&#x20AC;? said Mountney. â&#x20AC;&#x153;More people are going to studs. The only complaint is theyâ&#x20AC;&#x2122;re noisy, but the traction once they try them, itâ&#x20AC;&#x2122;s hard not to run them ever again. Usually, when they run them, they want them all the time.â&#x20AC;?

The Bridgestone M775 steel radial is the best selling new tire for heavy crude haulers.

It has an extra deep tread for long original tread life and special compounds to resist cuts, chips, tearing and irregular wear.

The Lloydminster shop has seven full time and three part time employees who turn into super heroes without capes when the going gets tough â&#x20AC;&#x201C; as it did with the second snowfall of the season. â&#x20AC;&#x153;At one point, I had four lines on the go. We were all in the back. I left one person in the oďŹ&#x192;ce and I actually put three lines on hold with one incoming just so we could keep up,â&#x20AC;? said Mountney. ɸ Page B36

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B36

PIPELINE NEWS January 2013

Retreading tires a busy business Éş Page B35 â&#x20AC;&#x153;Some mornings right oďŹ&#x20AC; the hop, we will

have 80 tires to put on and then we are explaining to guys 20 minutes

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31/2 miles South of Estevan on Hwy 47 (35 of 1 of 8, West of the 2nd)

after opening that itâ&#x20AC;&#x2122;s a day wait â&#x20AC;&#x201C; drop it oďŹ&#x20AC; and weâ&#x20AC;&#x2122;ll tell you when itâ&#x20AC;&#x2122;s ready. â&#x20AC;&#x153;It pays to be ďŹ rst in line especially when the snow ďŹ&#x201A;ies. Everybody waits until that snow hits the ground before that light goes on saying â&#x20AC;&#x2DC;hey I need them on.â&#x20AC;&#x2122;â&#x20AC;?

Surprisingly, retread tires for oilďŹ eld semis and trailers outsell new tires almost 4 to 1 with Kal-Tireâ&#x20AC;&#x2122;s ďŹ&#x201A;eet customers such as Wes Can, Husky, Trican and Halliburton. â&#x20AC;&#x153;DeďŹ nitely itâ&#x20AC;&#x2122;s about

* Formerly â&#x20AC;&#x153;Three Star Environmentalâ&#x20AC;?

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cost savings,â&#x20AC;? said Riley Cowan, outside sales manager who noted a large retread truck tire could cost $300 compared to $600 for a new one. â&#x20AC;&#x153;You get about 80 per cent of the life of what youâ&#x20AC;&#x2122;d get on a new tire. The cost per kilometre is what we typically sell by, so there is anywhere from a 30 to 50 per cent cost savings. â&#x20AC;&#x153;For a larger ďŹ&#x201A;eet, you multiply that by the number of wheel positions.â&#x20AC;?

Each week, Kal Tire ďŹ lls up a trailer with up to 132 used oilďŹ eld tires to be sent to the Bandag retread facility in Regina. â&#x20AC;&#x153;You can retread a casing more than once.

With the initial purchase of $600 for a new tire, you can get up to nine retreads on one casing,â&#x20AC;? said Cowan. â&#x20AC;&#x153;Not only does it save the company money, it saves the environment because itâ&#x20AC;&#x2122;s recycling.â&#x20AC;?

The Bandag BDY2

is the best selling single or tandem oilďŹ eld retread designed for enhanced traction on unimproved road surfaces.

Kal Tire can install and service winter tires on up to four semis at a time in a covered outdoor pad at the back of their shop.

A typical semi will need eight winter drive tires with a life expectancy of between 80,000 to 100,000 kilometres in the Lloydminster area. â&#x20AC;&#x153;Lease roads chew them up and they are busy, so they wonâ&#x20AC;&#x2122;t always come in and get them rotated in time, which kind of cups them and creates wear,â&#x20AC;? said Mountney.

Kal Tire however, dispatches one of its service trucks daily to check the yards of its ďŹ&#x201A;eet customers as part of a preventative maintenance program. â&#x20AC;&#x153;Before those trailers head out on the road, weâ&#x20AC;&#x2122;ve got a guy who goes out and hammers on every tire looking for ďŹ&#x201A;ats or worn out tires,â&#x20AC;? said Cowan. â&#x20AC;&#x153;We try and take care of it and eliminate the downtime. While those trailers are down, we are servicing them. â&#x20AC;&#x153;It keeps the customer happy and keeps them coming back to

Kal.â&#x20AC;?

Cowan makes regular sales and service trips to Husky which has grown to become KalTireâ&#x20AC;&#x2122;s largest account after starting with 14 trailers in 2007. â&#x20AC;&#x153;Theyâ&#x20AC;&#x2122;ve grown immensely and, of course, the business weâ&#x20AC;&#x2122;ve done with them has grown immensely,â&#x20AC;? said Cowan. â&#x20AC;&#x153;Retreads play a signiďŹ cant role in how they were able to expand so quickly.â&#x20AC;? â&#x20AC;&#x153;What we try and do is prove to the customer that what we can provide for them is above and beyond what the competition can provide. â&#x20AC;&#x153;Obviously, we want to lower their operating cost or it wouldnâ&#x20AC;&#x2122;t make sense for them to switch from their current supplier to what we do. â&#x20AC;&#x153;We accomplish that by purchase reports, retread reports â&#x20AC;&#x201C; give as much information as we can give to that customer so that it makes their buying decisions that much easier because theyâ&#x20AC;&#x2122;ve got all the information. â&#x20AC;&#x153;Our company is set up quite well to provide that extra value to them.â&#x20AC;?

Kal Tire also has a journeyman on staďŹ&#x20AC; for front end brake and suspension work on smaller cars and trucks.

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PIPELINE NEWS January 2013

B37

Condos for the driver and their truck Arcola â&#x20AC;&#x201C; If thereâ&#x20AC;&#x2122;s one thing you can never seem to ďŹ nd enough of, itâ&#x20AC;&#x2122;s shop space for ďŹ&#x201A;uid haulers in the winter. That, and housing, are always in short supply and high demand.

Those are two birds Harry Laurent is trying to kill with the same stone. This winter heâ&#x20AC;&#x2122;s planning on building 10 units in a â&#x20AC;&#x153;trucker condoâ&#x20AC;? conďŹ guration.

The idea is to build shop space for individual trucks, and make the back of the shop into a two-storey apartment.

Each unit will be 100 feet long.

The ďŹ rst 85 feet will be truck shop, and the rear 15 feet will have a twostorey apartment with roughly 1,000 square feet of living space.

Each shop and apartment unit will be separated by a smoke wall. â&#x20AC;&#x153;We hope to make it into a condo. Weâ&#x20AC;&#x2122;re going to start on them soon,â&#x20AC;? Laurent said on Dec. 4.

As for the location, he has ďŹ ve acres behind his lumberyard, Arcola Building Supplies. His other venture is Harry Laurent Construction Ltd., which specializes in shop construction. That location also is puts it in

easy access to Highway 13, right on the Bakken fairway. â&#x20AC;&#x153;I would hope we would have them done by spring,â&#x20AC;? he said. â&#x20AC;&#x153;If I had them now, theyâ&#x20AC;&#x2122;d be going like hotcakes,â&#x20AC;? Laurent said in reference to the condos. â&#x20AC;&#x153;Theyâ&#x20AC;&#x2122;re basically designed for one person. A lot of people have their own truck, and no place to stay.â&#x20AC;?

Laurent has done a lot of consultation in the industry, particularly with ďŹ&#x201A;uid haulers, and they tell him heâ&#x20AC;&#x2122;s on the right track. â&#x20AC;&#x153;Every time he puts a truck in a bay, he had a place for the man to live.â&#x20AC;?

The units could be sold individually, or in blocks to larger ďŹ rms.

Units will have appliances included, and may have a deck built on the back.

Friends in Alberta sharing ideas helped inspire the concept. â&#x20AC;&#x153;Iâ&#x20AC;&#x2122;ve researched this for about a year. In my mind, it should ďŹ&#x201A;y. Itâ&#x20AC;&#x2122;s a fairly expensive gamble, but I think it will ďŹ&#x201A;y. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s going to be their home.

Weâ&#x20AC;&#x2122;re going to have to make it nice.

Winter Drilling CanElson Drilling Rig 16 could be found drilling between Kisbey and Forget in early December.

Photo by Brian Zinchuk

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Cordell Janssen District Manager Downhole

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

LECLAIR TRANSPORT General OilďŹ eld Hauling

Lyle Leclair Cell: 306-421-7060

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

Lloyd Lavigne â&#x20AC;˘ Kirk Clarkson Owners/Managers 6506 - 50th Avenue Lloydminster, AB

Phone: (780) 875-6880

5315 - 37th Street Provost, AB T0B 3S0

Phone: (780) 753-6449

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B38

PIPELINE NEWS January 2013

CAREER GuĂ&#x2014;de

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101 Supreme St. (Shand access road)

SERVICE RIG PERSONNEL Class 1A & 3A Preferred Above Industry Wages Benefits Packages Opportunity for Advancement Email: sleibel@suncountrywellservicing.ca Fax 306 634 1200 â&#x20AC;˘ Cell 306 421 3418

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â&#x20AC;˘ CONSTRUCTION MANAGER

Weâ&#x20AC;&#x2122;re hiring for various projects throughout Southern Saskatchewan

â&#x20AC;˘ 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 16â&#x20AC;?).

This positionâ&#x20AC;&#x2122;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

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-Employee & Owner Operators with Pipeline Construction Experience

All positions require previous experience in Pipeline Construction.

Previous experience on Pipeline Integrity projects is an asset.

Slickline Division Compensation: Competitive wages Overtime Daily Subsistence /Living allowance

Preferred Certifications H2S Alive Standard First Aid & CPR

Required Certifications Driverâ&#x20AC;&#x2122;s License Ground Disturbance â&#x20AC;&#x201C; (Heavy Equipment Operators only)

Please submit your resume to : For more details and other career opportunities please visit: email: hr@abpipeliners.com â&#x20AC;˘ Fax:403.265.0922 www.abpipeliners.com For Inquiries please call: 780.384.4050

We are seeking dynamic and motivated Field Assistants for our Estevan location.

Do you possess? â&#x20AC;˘ A valid driverâ&#x20AC;&#x2122;s license (minimum Class 5) â&#x20AC;˘ Previous Slickline and E-Line experience is an asset but not required. We are willing train the right candidate! ** Guaranteed Salary, Job Bonuses and Full BeneďŹ ts!** *Successful applicants must be willing to submit to and pass pre-employment testing* Please apply online at: www.pure-energy.ca We thank all applicants for their interest; however, only those considered for an interview will be contacted.

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PIPELINE NEWS January 2013

EMPLOYMENT OPPORTUNITY McNeil Plumbing and Gas Fitting based in Redvers, SK is looking for:

Experienced Plumbers/ Apprentice Plumbers/HVAC Technicians

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$SSOLFDQW 5HTXLUHPHQWV

• Wages up to $40/hour • Overtime after 8 hours • Use of company cell phone and company truck • Full bene¿ts after three months • Living accommodations available

To apply call 306 452-5199 or email jason_gas¿tter@live.ca

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PIPELINE NEWS January 2013

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PIPELINE NEWS

SECTION B January 2013

The Port of Churchill is no stranger to tanker traĸc. For decades, tankers were used to bring in fuel to supply the joint U.S.-Canadian military base. The tank farm can be seen behind the grain terminal. Now these faciliƟes are being considered for exporƟng Western Canadian crude oil.

Photo courtesy the Churchill Gateway Development CorporaƟon

Port of Churchill considered for crude export

By Brian Zinchuk Winnipeg, Churchill, Man. – Work is underway for another export outlet for Western Canadian oil, but it’s not where you might expect. If successful, this oil will not be going west, to the Pacific coast, or via pipeline south or east. No, this route leads north.

The idea is to ship light crude oil by rail to the Port of Churchill, Manitoba, where it will then be loaded onto tankers. Those tankers could then carry the oil to refineries on the East Coast of Canada or the U.S., the U.S. Gulf Coast, or Europe.

Canada’s northernmost port has an important feature. Its entire reason of being it is has been the closest tidewater port for prairie grain. That also makes it the closest port for Saskatchewan oil.

Jeff McEachern, executive director of the Churchill Gateway Development Corporation (CGDC), spoke to Pipeline News on Dec. 7 via phone from Winnipeg, where they are headquartered.

The CGDC is a non-share, public-private partnership and includes representation from the government of Canada (Western Economic Diversification), the province of Manitoba and OmniTRAX, Inc. OmniTRAX is the private owner/operator of the Port of Churchill and the railway that serves the port, the Hudson Bay Railway Company. OmniTRAX, bought the rail line over a decade ago.

“Early this year (2012), we received a call from a producer who wanted to ship oil from the port,” McEachern said.

“There’s a lot of moving parts at this point. " That got the ball rolling. They have been meeting with producers, midstreamers and refiners, and studying the economics. That studying has led them to “become comfortable that this has some legs.”

“Our proximity to producers is pretty good,” he said, noting how close the port is to central Alberta and southeast Saskatchewan oil production. “Strategically, we’re good for Eastern Canada and Europe.

The total volume of shipments they are aiming for is rather small in comparison to Canadian production. “It’s about 2 million barrels (per year) is what we’d like to work towards.

“That number is a comfortable number.”

Put in perspective, that would be less than four-and-a-half days of Saskatchewan’s total production. Put another way, it would be roughly 50 days of shipping from Crescent Point’s recently-expanded 40,000 barrels per day rail loading facility near Stoughton.

He acknowledged, “It’s insignificant based on production in the market.”

But it is another option.

Asked if they were targeting smaller, more nimble junior producers, or larger ones, McEachern said, “At this point, the entire market is our target market.” ɸ Page B2

B2

PIPELINE NEWS January 2013 2012

Ice has not been a problem for grain shipments ɺ Page B1 Improved car efficiency One of the key factors in shipping crude-by-rail is the availability of tanker cars. It can take 20 to 30 days for a car to be shipped to the Gulf or East Coast and back. But a run from southeast Saskatchewan to Churchill is substantially shorter.

“From southeast Saskatchewan, a return cycle, including unloading, is probably 16 days,” he said. The result is a substantial increase in rail car efficiency. You can ship more oil using the same number of cars.

The Churchill Gateway Development Corp. won’t be providing cars, however.

That’s up to the producers, midstream companies or refineries.

While geography is a benefit, it also has its challenges. Churchill is far from being an ice-free port. It’s shipping season is from July 31 to Oct. 31.

“The shipping season is dictated by vessel insurance,” McEachern said. “Last year we probably could have shipped until Christmas due to ice in the bay. Global warming has had an effect on the ice.”

The insurance companies haven’t adjusted their season yet, but he noted they are aggressively working on it.

“Adding one month to a four-month shipping season is a big pickup,” he said.

A few weeks at the beginning of the season, and a few at the end, would be a great benefit. Going further into the fall would make a substantial difference to their grain shippers, extending the harvest shipping window.

As for ice, McEachern said no grain vessels have experienced ice issues in recent years.

“It hasn’t been raised as a concern by charter owners or vessel agencies.”

The Labrador coast is known as iceberg alley. There’s a fair amount of traffic, with grain traffic and ships servicing Nunavut mines, he noted. “There’s no documented accounts of problems in the grain shipping season,” he said.

Environmental concerns have been the Achilles heel for other shipping options, including the proposed Northern Gateway pipeline and Keystone XL pipeline.

Whereas Hudson Bay is similar in size to the Gulf of Mexico, the latter has thousands of vessels that can mount a response with booms and skimmers.

But there are precious few vessels in the entire Hudson Bay. Asked how they would mount a response to a spill, McEachern said it is part of the operational plan they are working on, but it not finalized or ready yet. Similarly, the environmental assessment is part of their engineering work. He noted they are working will all appropriate agencies.

Tankers are not new to Churchill, not by a long shot. There’s a substantial tank farm in Churchill that was built to support the former U.S. and Canadian joint military base there. Tankers used to be used to bring in fuel, but now that comes in by rail. Just a fraction of the tank farm’s capacity is currently used for refined products – diesel, jet fuel, gasoline. But it can also be used for crude. The system can both receive and ship petroleum products.

“It’s bi-directional,” he said.

The tankage has a total capacity of 250,000 barrels. McEachern said they anticipate approximately 200,000 bbl. could be used for unrefined product. The remainder is used to service the community.

“We’re evaluating our storage capacity right now,” he said.

That’s not enough, however, to fill a ship.

“The ships we’re looking to fill are 250,000 to 300,000 barrels,” McEachern said.

However, with full storage and the ample rail storage they have, they can easily fill such a ship.

For the sake of modelling, they are working with the current capacity for the first year or two, before looking into additional storage.

“These investments are driven by the market,” he said.

As far as ships go, that tanker size is relatively small. They are targeting six to eight ships a year. Their combined capacity would equal just one very large crude carrier (VLCC), also called supertankers, and be half of the capacity of the largest ships, ultra large crude carriers.

Seventeen grain vessels were loaded at Churchill during the 2012 season, with destinations ranging from Columbia to Kenya. Most of the destinations were in Africa, with Europe being the second most frequent destination.

Rail capacity One of the concerns Canadian National raised in the 1990s was the capacity of the rail line to handle heavier traffic. At the time, CN said they could only ship grain in boxcars on that line, instead of heavier hopper cars. OmniTrax has been able to overcome that, however, and routinely uses hopper cars.

The portion north of Gillan in particular, built on permafrost, has its speeds reduced. “That piece of line has seen a lot of upgrades in the last 10 years,” he said.

Oil tanker cars are not much different, according to McEachern, and while their weight capacity is slightly lower than Class 1 railways (268,000 pounds per car versus 286,000 pounds). Rail tanker cars are typically loaded between 600 and 650 barrels based on the weight capacity of the rail line, not the volume capacity of the cars. They are using 600 barrels per car in their calculations.

This summer targeted “The target is to have a vessel loading in July 2013,” McEachern said. They are hoping to have commercial agreements in place in the coming months.

“Last year we probably could have shipped until Christmas due to ice in the bay. Global warming has had an effect on the ice.”

- Jeff McEachern, Executive director of CGDC

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PIPELINE NEWS January 2013

B3

More women needed in the patch Â&#x201E; By Josh Schaefer For Pipeline News Saskatoon â&#x20AC;&#x201C; Itâ&#x20AC;&#x2122;s a common sight everywhere you go in the oilpatch: precious few tradeswomen, but, Edmonton-based not-for-proďŹ t Women Building Futures is on a mission to change that. â&#x20AC;&#x153;What weâ&#x20AC;&#x2122;re seeing right now is a real shift,â&#x20AC;? said president and CEO JudyLynn Archer. â&#x20AC;&#x153;Youâ&#x20AC;&#x2122;re seeing more women expressing an interest in ďŹ nding out more information about these kinds of jobs and industries and weâ&#x20AC;&#x2122;re seeing a signiďŹ cant shift in terms of the industry being really open and interested in hiring more women.â&#x20AC;?

Women Building Futures recruits and trains women for the industrial, institutional, construction, mining, roadworks and the oil and gas industries. â&#x20AC;&#x153;It has been traditionally a male industry, the same as health care has been traditionally female,â&#x20AC;? said Archer, noting a large increase over the last six years of women coming into the workforce. â&#x20AC;&#x153;You have a lack of awareness in women about these industries, now more and more women are ďŹ nding out about these jobs.â&#x20AC;?

Archer estimates that 10 years ago, about three per cent of construction related tradespeople in Alberta were women. That number today is at four per cent. â&#x20AC;&#x153;It might not sound like a lot, but thatâ&#x20AC;&#x2122;s actually a lot of individuals needed to move that needle.â&#x20AC;?

Women Building Futures has been responsible for 650 tradeswomen coming out of their program into industry and in 2011 they had more than 2,600 women contact them for more information about getting into industry related work. â&#x20AC;&#x153;As more and more women learn about these opportunities, more and more women are coming into the industry,â&#x20AC;? Archer said. â&#x20AC;&#x153;In terms of the retirement of the baby boomers, Saskatchewan is looking at unprecedented growth.

Weâ&#x20AC;&#x2122;re going to need more people and in fairly large numbers to replace the retirements. â&#x20AC;&#x153;Can women do this work? Yes, of course they can,â&#x20AC;? Archer said, speaking about the pipeline work speciďŹ cally. â&#x20AC;&#x153;I donâ&#x20AC;&#x2122;t think many women know too much about that particular segment of the industry, and Iâ&#x20AC;&#x2122;m not convinced that the pipeline industry reaches out to women.â&#x20AC;?

Archer noted that in the awareness campaigns that her organization has been running for the past 10 years, they exclusively use photographs of women in their literature. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s just like any other type of marketing, you target your images,â&#x20AC;? Archer explained. â&#x20AC;&#x153;Women respond to those pictures. We would love to work with the oilpatch to do more of that. Itâ&#x20AC;&#x2122;s certainly paying oďŹ&#x20AC; for the construction sector in working with us to get their name out to women in Alberta.â&#x20AC;?

Working with large and small companies in the construction and oilsands sectors, Archer noted that they do not currently work with any companies involved in the oilpatch. â&#x20AC;&#x153;We have to let women know that these opportunities are out there and these companies are actually looking to hire, they need people whether they are male or female. Theyâ&#x20AC;&#x2122;re looking to hire people

with the right skills.â&#x20AC;?

Women Building Futures focuses their attention on the 100 women they help annually in several key areas. â&#x20AC;&#x153;The ďŹ rst thing we do it get information out to raise awareness.â&#x20AC;?

The second step is assisting the applicant in making a determined and well informed decision about whether the chosen career is a good ďŹ t for their lifestyle.

Women Building Futures then provides the necessary training, workplace culture preparedness training, safety training and helps to develop the skills that are required for the chosen career. â&#x20AC;&#x153;At the end of the program, our job is to make sure that our students, when they graduate, go to work and continue to work in that ďŹ eld. We provide ongoing coaching and mentorship as long as she needs it.â&#x20AC;?

Archer says that this helps make the diďŹ&#x20AC;erence with the companies that Women Building Futures works with.

â&#x20AC;&#x153;We donâ&#x20AC;&#x2122;t just train people, we try our best to get the right people into the right training program and into employment that they will maintain for the long haul.â&#x20AC;? â&#x20AC;&#x153;As more and more women start to apply for these jobs, weâ&#x20AC;&#x2122;ll see more and more of them out there, and we see it every day,â&#x20AC;? Archer said.

Women Building Futures was in Saskatoon on Nov. 26, hosting a Best Practices for Hiring and Retaining Tradeswomen workshop. â&#x20AC;&#x153;I thought it was really well attended,â&#x20AC;? Archer said. â&#x20AC;&#x153;We had a really good conversation about whatâ&#x20AC;&#x2122;s working now and we can do to improve this entire eďŹ&#x20AC;ort of getting more women working in industry.â&#x20AC;?

A good mix of people attended, ranging from post-secondary students, to industry and mining as well as people involved in apprenticeship programs. â&#x20AC;&#x153;Thereâ&#x20AC;&#x2122;s a role of industry in terms of making sure that once weâ&#x20AC;&#x2122;ve attracted these great people, we need to retain themâ&#x20AC;? Archer said in conclusion.

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B4

PIPELINE NEWS January 2013

New mayor takes the reigns in Estevan Â&#x201E; By Brian Zinchuk Estevan â&#x20AC;&#x201C; Estevan, the Energy City, has a new mayor, but one who has plenty of experience on city council and who is aware of the booming cityâ&#x20AC;&#x2122;s challenges.

Mayor Roy Ludwig had been a member of council for 18 years prior to being elected mayor.

Pipeline News spoke to Ludwig after he was elected to the post in late October, and again in early December.

Ludwig, has spent 36 years as a coal miner with Sherritt Coal, which has had many names over the years, working in a number of roles over that time.

Currently he works on the pump crew, dewatering pits. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s a constant job. The water is always leaking in constantly. I am on a team, usually four of us per shift, that keeps the pits dry so they can take the coal out.â&#x20AC;? â&#x20AC;&#x153;I have a blue-collar job,â&#x20AC;? he said. â&#x20AC;&#x153;I like it, because it involves a lot of walking and keeps me in shape.â&#x20AC;?

He grew up on the family farm east of Lampman. In his younger days, he spent some time in Edmonton before working with SaskTel in Regina.

Ludwig soon tired of the city, and returned to Lampman, where he took over the Lampman open line telephone exchange before SaskTel took it over.

This led to him starting at the mine in November 1976.

His experience in mining ranges from loading boxcars, oiling on draglines, to blasting and being a brakeman on the locomotive and a tire technician.

Now his new job (in addition to being a miner), has him leading City Hall. â&#x20AC;&#x153;Some of the issues we have before us is managing growth. We have a lot of growth in our city right now,â&#x20AC;? Ludwig said. â&#x20AC;&#x153;We have a lot of challenges associated with growth. Weâ&#x20AC;&#x2122;re working constantly with the government on aďŹ&#x20AC;ordable housing.â&#x20AC;? â&#x20AC;&#x153;Theyâ&#x20AC;&#x2122;ve got a few programs out now. One weâ&#x20AC;&#x2122;re looking at is the capital rent subsidy, a pilot

program.â&#x20AC;?

The city will also be seeking infrastructure money from the provincial and federal governments. â&#x20AC;&#x153;Hopefully through these programs, with the provincial and federal governments, it will alleviate the need to have to keep going the tax base.â&#x20AC;? â&#x20AC;&#x153;AďŹ&#x20AC;ordable housing is a big issue. Continued infrastructure needs â&#x20AC;&#x201C; roads, water mains, sewers, sidewalks.â&#x20AC;?

Housing is a key issue for Estevan, which has been a chronically tight market for several years, especially since the onset of the Bakken oil boom.

That, combined with the hundreds of workers taking part in the Boundary Dam carbon capture project, has meant rising rents, high housing prices and scant supply. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re spending $40,000 on a housing study to give insight,â&#x20AC;? he said. Itâ&#x20AC;&#x2122;s similar to a project Weyburn did in recent years. The money was approved in the last Estevan budget.

For several years, private development of a large parcel on Estevanâ&#x20AC;&#x2122;s northeast corner has been talked about, but has not come to fruition. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re getting closing to inking a deal with Essex Developments,â&#x20AC;? he said, referring to the developer. That parcel could result in hundreds of lots eventually becoming available.

Another company, Trimount Developments, has started development of residential property on the cityâ&#x20AC;&#x2122;s north side.

The new hotels are coming along, he added, opening up more accommodations.

One of Estevanâ&#x20AC;&#x2122;s limitations to development has been the ability to supply adequate water pressure, particularly on the north side of the city. The current construction of a new water reservoir on the west side should soon alleviate that constraint. â&#x20AC;&#x153;We can start looking north of the city, towards the truck bypass,â&#x20AC;? he said. Part of that eventual development will be industrial, but council and planning will need to make decisions as to where that will be.

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A few years ago, Estevan opened the Glen Peterson Industrial Park on the cityâ&#x20AC;&#x2122;s east side, now home to Canyon Technical Services, AcklandsGrainger, Regens Disposal and the Saskatchewan Energy Training Institute. However, the park is still largely empty. â&#x20AC;&#x153;We have more land available,â&#x20AC;? Ludwig said when asked about industrial land available for development. â&#x20AC;&#x153;Thatâ&#x20AC;&#x2122;s where we would like to see new players set up.â&#x20AC;?

Several companies have told Pipeline News they found that land to be pricey. Ludwig responded by saying the prices were comparable to Weyburn, adding, â&#x20AC;&#x153;We feel the price is fair, but if weâ&#x20AC;&#x2122;re not competitive, weâ&#x20AC;&#x2122;ll take a look at it, absolutely.â&#x20AC;? â&#x20AC;&#x153;Quite a few are setting up in the RM (of Estevan),â&#x20AC;? he noted, citing a development agreement with the RM. The city provides potable water to many of these sites.

He noted that development levies for places like Estevan and Weyburn are likely going up. â&#x20AC;&#x153;Our development levies havenâ&#x20AC;&#x2122;t changed for a number of years. Council will have to take a serious look. Regina raised theirs considerably.â&#x20AC;? â&#x20AC;&#x153;The costs will not be going down. Land prices in Saskatchewan have been increasing.â&#x20AC;?

One continuing frustration for the city has been the lack of progress on the truck route, which was announced in the 2008 provincial budget at the same time as Yorktonâ&#x20AC;&#x2122;s bypass. But while Yorktonâ&#x20AC;&#x2122;s route has had several phases built and opened, Estevanâ&#x20AC;&#x2122;s has yet to scratch dirt. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re frustrated the bypass isnâ&#x20AC;&#x2122;t in place yet.

But having said that, weâ&#x20AC;&#x2122;re working closely with the provincial government to make it happen.â&#x20AC;?

To that end, Ludwig said he met with Highways and Infrastructure Minister Don McMorris along with former mayor Gary St. Onge and city manager Jim PuďŹ&#x20AC;alt just before the election. â&#x20AC;&#x153;Theyâ&#x20AC;&#x2122;re in the acquiring state. Theyâ&#x20AC;&#x2122;ve upped their initial oďŹ&#x20AC;er considerably,â&#x20AC;? Ludwig said, referring to the price oďŹ&#x20AC;ered to landowners along the corridor. Several land acquisitions along the route have had an impact on what is seen as fair market price, much more than the $1,000 per acre that was initially oďŹ&#x20AC;ered. A 400-metre wide corridor is planned.

The landownerâ&#x20AC;&#x2122;s initial response was not favourable. ɸ Page B5

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PIPELINE NEWS January 2013

B5

Estevanâ&#x20AC;&#x2122;s newly elected Mayor Roy Ludwig aĆŠended the grand opening of the new Microtel Inn & Suites just before being sworn in as mayor on Oct. 29.

Éş Page B4 â&#x20AC;&#x153;We are hoping the impasses as far as the land dealings go can be brought to a successful conclusion.â&#x20AC;? â&#x20AC;&#x153;We hope a deal can be made so they can move forward,â&#x20AC;? Ludwig said. â&#x20AC;&#x153;We feel itâ&#x20AC;&#x2122;s important. Our streets are suďŹ&#x20AC;ering as a result of the heavy truck traďŹ&#x192;c. It will alleviate costs on ďŹ xing a street, and a few years later, ďŹ xing it again.â&#x20AC;?

With SaskPower now shipping ďŹ&#x201A;y ash to the Estevan rail yard for shipment, he said the city is hoping to see mitigation money from the Crown to assist with its roads.

As for the Boundary Dam Unit 3 carbon capture project, he said, â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re very excited the federal government and province came together to make this happen, along with SaskPower.â&#x20AC;? â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;ve already got countries like China visiting, and itâ&#x20AC;&#x2122;s not even complete,â&#x20AC;? he said. â&#x20AC;&#x153;With this cutting edge technology, we will be the envy of all countries with coal power production.â&#x20AC;?

Ludwig hopes that SaskPower will choose to use the â&#x20AC;&#x153;clean coalâ&#x20AC;? technology on all its coal-ďŹ red generating units. It would mean continued production for the local coal mines and long-term stability for the power plants. â&#x20AC;&#x153;It means more jobs, continued jobs. The coal mines and power plants have been around for a long time. It means a long term commitment from SPC

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The new council has set as its main priority in 2013 the completion of existing projects, like the paving of the large parking lot areas around the principal recreational facilities in the centre of the city. In addition, he noted, â&#x20AC;&#x153;Thereâ&#x20AC;&#x2122;s a lot of paving that weâ&#x20AC;&#x2122;ve fallen behind on.â&#x20AC;?

Over the past year, City Hall has been sensitive to the idea that crude oil is being loaded onto rail cars from trucks in the Canadian PaciďŹ c railyard in the centre of Estevan. â&#x20AC;&#x153;We are the Energy City. I embrace the oil industry. They put a lot of money into our community. What weâ&#x20AC;&#x2122;re trying to do is, through dialog with CP and Cenovus, we are looking at other alternatives. For one thing, it is cramped for them to get in there. It is tight. Thereâ&#x20AC;&#x2122;s only room for so many cars, whereas, on a bigger siding, they could have much more production as far as loading. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re working with CP, weâ&#x20AC;&#x2122;re working with Cenovus, to ďŹ nd alternatives. â&#x20AC;&#x153;One of the alternatives we have suggested is City-owned land toward the landďŹ ll. We have land adjacent to the CP track at the landďŹ ll site. The land is there. We were looking at an arrangement where hereâ&#x20AC;&#x2122;s the land, you put the track in. Weâ&#x20AC;&#x2122;re still in discussions. â&#x20AC;&#x153;It could be a bigger siding for them, but they havenâ&#x20AC;&#x2122;t got back to us.â&#x20AC;?

Ludwig said oilpatch companies have been great corporate citizens, with lots of donations coming into the community from them.

B6

PIPELINE NEWS January 2013

Weyburn seeks to take away housing pinch point Â&#x201E; By Brian Zinchuk Weyburn â&#x20AC;&#x201C; With a four year mandate and an 87 per cent plurality of the vote, Weyburn Mayor Deb Button has her eye on growing her community.

Pipeline News spoke to her not long after the October election to see what her cityâ&#x20AC;&#x2122;s plans were with respect to the oilpatch and its needs.

Asked how the City of Weyburn plans to meet the needs of the energy industry, Button said, â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;ve been working hard at that already. Youâ&#x20AC;&#x2122;ll notice, if you paid any attention to election issues in Weyburn, part of the discussion was district planning. We have been working very closely with the RM of Weyburn, planning how we will develop around the city of Weyburn. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;ve also been very diligent with the housing advisory committee. We have two studies weâ&#x20AC;&#x2122;ve done. The ďŹ rst one the committee did was a needs assessment for the city of Weyburn. Obviously, the oil and gas industry has a huge impact on housing in our community. The second study was the business plan for housing. â&#x20AC;&#x153;Both of those, thereâ&#x20AC;&#x2122;s no way to measure their impact, truly. The ďŹ rst one we got, the needs and demands study, our committee opened it up and said,

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â&#x20AC;&#x2DC;What the heck is this? This is not what we were thinking we were buying.â&#x20AC;&#x2122; â&#x20AC;&#x153;As it turned out, as developers showed up, we started putting it into their hands and it was exactly what they needed. Weâ&#x20AC;&#x2122;ve had great success with developers coming in because of the needs and demands assessment we did.

Moving forward with the housing plan we now have, our housing has made great strides. We know where weâ&#x20AC;&#x2122;re going. We know where weâ&#x20AC;&#x2122;re developing.

We know how many houses and units will be put in the community in the next several years. We know what our target is and our goal.â&#x20AC;?

As for what those targets are, Button said, â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s longer than a four year plan.

Itâ&#x20AC;&#x2122;s in the hundreds. We know weâ&#x20AC;&#x2122;ve reached those targets. The community of Weyburn has opened up lots itself. We had 700 lots on paper three years ago.

Since then weâ&#x20AC;&#x2122;ve opened up some of that area. We now have private developers.

Weâ&#x20AC;&#x2122;ve annexed some land from the RM that are opening up more. Weâ&#x20AC;&#x2122;ll see more coming in the fall.â&#x20AC;?

Asked about the issues beyond housing, she noted, â&#x20AC;&#x153;Ebel Road (an industrial subdivision) is ďŹ lled up, whatâ&#x20AC;&#x2122;s developed of it. But thatâ&#x20AC;&#x2122;s just a portion of the plan. It loops and thereâ&#x20AC;&#x2122;s more to it. Weâ&#x20AC;&#x2122;re ready to open that up. â&#x20AC;&#x153;We are taking a look with our district planning. Maybe there is some development more suited to the RM. Certainly we would approach the RM to take that development. Thereâ&#x20AC;&#x2122;s some that would be more suitable to the city of Weyburn. Itâ&#x20AC;&#x2122;s not all about growth in our boundaries. Itâ&#x20AC;&#x2122;s about growth in our area.

More dirtwork is needed to be done on the Ebel Road project, expected to be initiated this spring. â&#x20AC;&#x153;Highway commercial may be an issue for us, but I donâ&#x20AC;&#x2122;t think weâ&#x20AC;&#x2122;ll be caught short. â&#x20AC;&#x153; The city has seen expansion in its hotel sector, including the recent rebuild of the Travelodge. Microtel has announced a new hotel for Weyburn. Button said, â&#x20AC;&#x153;I suspect by spring weâ&#x20AC;&#x2122;ll see movement on the land. Weâ&#x20AC;&#x2122;ve been in conversation with them for quite some time.â&#x20AC;?

That hotel will be near the Walmart.

As for other future developments, she said, â&#x20AC;&#x153;Thereâ&#x20AC;&#x2122;s lots of dirt-kickers always around. Weâ&#x20AC;&#x2122;re thrilled to have them and to show them the community.

Some materialize, some donâ&#x20AC;&#x2122;t.

She noted Weyburn is Saskatchewanâ&#x20AC;&#x2122;s second-fastest growing city, second only to Lloydminster, which is partially in Alberta. The census data is important in calculations of vacancy rates. â&#x20AC;&#x153;We know what our vacancy rate is moving forward, which will help us in our housing plans as well. Weâ&#x20AC;&#x2122;re looking at Habitat for Humanity. Our ministerial association, along with the city of Weyburn, is spearheading those projects. Weâ&#x20AC;&#x2122;re hopeful come spring or summer weâ&#x20AC;&#x2122;ll have a project underway. â&#x20AC;&#x153;With our population increase, weâ&#x20AC;&#x2122;ll now be on the radar for a bigger stores, chains looking at our communities. Itâ&#x20AC;&#x2122;s hard to get them to look at communities under 10,000. Thereâ&#x20AC;&#x2122;s a wish list in the community. A grocery store is No. 1. The community feels we can support another one,â&#x20AC;? Button said.

As for other issues, she said, â&#x20AC;&#x153;Certainly weâ&#x20AC;&#x2122;re seeing an increase with our police calls. I donâ&#x20AC;&#x2122;t believe itâ&#x20AC;&#x2122;s anything our members canâ&#x20AC;&#x2122;t handle at this point.

We know weâ&#x20AC;&#x2122;re just under what the provincial number is per call per member.

We may have to look in the future at adding more oďŹ&#x192;cers. It has big budget implications, of course. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re managing. Weâ&#x20AC;&#x2122;re doing alright. The community has really changed, I will say that. I donâ&#x20AC;&#x2122;t mean itâ&#x20AC;&#x2122;s changed from its core values; the values I appreciate and love. Whatâ&#x20AC;&#x2122;s at the heart of the community is the quality of life, and that hasnâ&#x20AC;&#x2122;t changed. But what has changed is the faces. You see a lot of diďŹ&#x20AC;erent faces. The demographics are changing considerably. ɸ Page B7

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PIPELINE NEWS January 2013

B7

“Moving forward with the housing plan we now have, our housing has made great strides.

We know where we’re going. We know where we’re developing. We know how many houses and units will be put in the community in the next several years. We know what our target is and our goal.”

Deb BuƩon was resoundingly re-elected to the posiƟon of mayor of Weyburn in October.

ɺ Page B6 “People will comment you could go to the grocery store and you knew everyone down the aisle. You could stop and talk. Now you go to the grocery store, and you don’t know everybody anymore. The demographics have certainly changed, and we’re reacting to that. Weyburn had the soft definition of the grey industry, more of a retirement community. We’re certainly not that anymore, and we’re aware of that.

“We’re expanding our parks. We’re expanding our spray parks – that will be two. We have a plan for a third possibly down the road, because we understand when families are looking for recreation, they’re looking for free and cheap. We need to keep our greenspaces vibrant. That’s something that is at the heart of the city of Weyburn. We love our walking paths, greenspaces and parks. We’re glad to move forward with those and keep our quality of life.”

Button noted there are two pinch points for business – labour and housing.

“I, as a mayor, can’t do much about labour, but I can affect housing. If you take away one of the pinch points, that’s our goal,” Button said in conclusion.

B8

PIPELINE NEWS January 2013

Pipeline apportionment drives rail demand

By Brian Zinchuk Calgary – With Enbridge having announced more pipeline apportionments in November, the pressure is on for oil producers to look at other alternatives to ship their product. That has been reflected in the differential between what the WTI prices is, and what they are actually getting.

On Dec. 7, January WTI was priced at $86.26 per barrel. However, Western Canadian Select, a Hardisty-based blend of conventional and oilsands production managed by Canadian Natural Resources, Cenovus Energy, Suncor Energy, and Talisman Energy, was fetching just $55.32, a differential of $31.75. Such differential hits hard.

Jarrett Zielinski, president and CEO of Calgary-based Torq Transloading, said, “It’s about as busy as it can get.”

Torq has set up a series of crude-by-rail transloading sites throughout Alberta and Saskatchewan in recent years.

“We’ve seen a big transition in the pace of business. I think, what we’ve seen over the past 20, 24 months has been people dipping their toes in.

It’s been a fundamental shift. Refiners, terminallers and large marketers have come in with their own rail cars and said ‘Hey, we want to take a much larger position, and we want to do so on a term basis.’

“That is what’s driving much of our development.”

At the company’s recently opened Southall lo-

cation near Bromhead, they launched with a three to five car a day range for loading capacity. “We are looking at a full build-out of that facility. We feel we’re easily within the 15,000 barrel a day range.

Currently we’re at 2,000 to 4,000 barrels a day. The demand continues to grow. People are looking at moving unit trains out of there.

“We’re looking at making that site big enough to accommodate 100 to 120 car trains.”

“The Midale spread from WTI is in the $23 range. There’s double the transportation cost by rail.

What we’re seeing is the end market development, meaning refiners and terminals, terminals-to-barge, pipeline terminals on the downstream side, we’ve seen them ramp up their rail offload capacity.

It’s all happening while thousands more rail tank cars are coming on the market. Zielinski said, “Our best estimate is about one-third to one-half of those are targeted towards Western Canada, on top of what’s already in this market.

“Those would be brand new builds.

“Those are coming online between now and a year from now.”

Southall currently has minimal infrastructure, with rail cars loaded directly from trucks. That will change.

“We anticipate putting tankage with a manifold there to load,” Zielinski said. “Our estimate is between 40,000 and 80,000 barrels. It could be more if the demand exists. It could be several tanks with multiple product types.

“The producers are facing shut-in right now,”

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he said, pointing to Enbridge’s mid-November apportionment of 18 per cent between its Line 4 and Line 67.

When such announcements are made, their phone starts ringing. “They look for alternatives.

We’re certainly one of them, as are our peers. At some of our facilities, we’re having to move to 24 hours.”

Unity is one example of round-the-clock operation.

“We certainly have plans to expand Unity.

“We’re looking for operators, specifically at Southall/Bromhead. We’d like to bring on more good people.

“We have several custody transfer transload meters in reserve in anticipation of the growth. We are looking at no less than two pipe-connect unittrain facilities for 2013. We will be operating in the Athabasca region in 2013.

“The rateability and scalability can in some cases increase once you disconnect from the trucks.

In Southall, we expect to truck-in volumes to the tankage. From there it will go to rail. " He quoted a J.P. Morgan report saying they expected tank car fleet to more than double in the next two years to 45,000 tank cars.

As for the next steps, he said, “The market needs to get bigger, and we intend to be a major player in that market and be at the forefront in that market, in a bigger scale.

“Eighteen months ago, it was difficult for me to get a call back from the majors, from the big guys. Now we get lot of calls back and lots of first calls.”

Crude-by-rail went from an alternative with potential downstream risk to a situation where “This is a downstream risk if we don’t get on the pipe.

“The pipe is now the downstream risk, not the rail. Our objective is to build it in scale and rateability.”

Rateability means that if the rail cars don’t show up, they can still put those barrels into storage.

Smaller producers, and even larger ones, aren’t equipped with rail cars, he said, but they can work with a marketer to help them.

The shipping cost differential between pipeline and rail on lighter and medium crude is around $13-$14, all-in. On heavier oil, like product from Cold Lake, the crude is shipped undiluted or under-diluted. “The economics get even more attractive,” Zielinski said, noting that 30 per cent diluent is no longer needed.

Heavy oil ships in tank cars that are insulated and equipped with heating coils. Steam is pumped into the coils at the delivery point to warm it.

“On top of the $32 discount, the spread between WTI and Brent is another $22. Maybe you’re not going to get Brent, but you’re going to get some adjusted basis of Brent, less transportation costs. There’s a big margin in there,” Zielinski said.

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PIPELINE NEWS January 2013

B9

More than just trucks: Clean Harbors in Arcola This frac heater can run its heaĆ&#x;ng units in parallel or series. Each heater is rated for seven million BTU. Brian Hagel is the area manager for Clean Harbors.

Â&#x201E; By Brian Zinchuk Arcola â&#x20AC;&#x201C; Since Clean Harbors established itself in Arcola a few years ago, the company has grown substantially. â&#x20AC;&#x153;The ďŹ&#x201A;eets have grown,â&#x20AC;? said Brian Hagel, area manager. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re running 25 units now.â&#x20AC;?

That includes steamers, vac trucks, combo units, water trucks, tank trucks, hot oilers, and one frac heater.

Hagel said he would really like to expand the frac heating side, noting they now have a local person heading up that service line. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;ve hit the ground running, trying to meet the demand. Weâ&#x20AC;&#x2122;re trying to get our foot in the door,â&#x20AC;? he said. â&#x20AC;&#x153;We have Clean Harbors Surface Rentals in Lampman,â&#x20AC;? Hagel noted. That came about from the acquisition of Peak Energy Services in June 2011. The name changed from Peak Energy Services, a Clean Harbors Company, in late November.

The surface rentals allow the company to build complete packages.

Noble Well Servicing is in the process of building a new shop right next to the Clean Harbors location. Clean Harbors will be leasing some space in that building, having already outgrown its shop built just a few years ago.

The company had 30 people working out of Arcola, but many of them come in on rotations, staying at the companyâ&#x20AC;&#x2122;s camp on-site. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s tough to ďŹ nd locals, but thatâ&#x20AC;&#x2122;s where our concentration is.â&#x20AC;? â&#x20AC;&#x153;Most of our guys work a 21 and 10 schedule. Weâ&#x20AC;&#x2122;ve got a huge recruiting team in Edmonton. We advertise locally, and in the Western Producer. Our recruiting department has a very long arm,â&#x20AC;? he said.

Camp The camp facility has expanded. Itâ&#x20AC;&#x2122;s an open camp. While Clean Harbors itself is the largest client, anyone can stay there.

As of early December there were 50 beds. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re going to open it up to 80,â&#x20AC;? he said. â&#x20AC;&#x153;Theyâ&#x20AC;&#x2122;re adding a rec facility and will expand the kitchen.â&#x20AC;?

Part of the camp is composed of ďŹ ve 50/50 shacks, used by Clean Harbors staďŹ&#x20AC;. The remainder of the camp is dormitory style.

The kitchen serves three meals a day and is open 24 hours. It oďŹ&#x20AC;ers a hot lunch, not simply sandwiches and soup.

The camp is managed separately from the other operations, but bookings can be done through the main oďŹ&#x192;ce.

Varied service lines One of things Hagel is focusing on is public awareness. â&#x20AC;&#x153;For being here for three years, thereâ&#x20AC;&#x2122;s still people who donâ&#x20AC;&#x2122;t know what we do,â&#x20AC;? he said, â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re not just the truck. We are the people, the lodging services, the surface rentals. We have a lot more service lines than people know.â&#x20AC;?

Some of those other lines include providing methanol for pipeline testing, tank rentals and specialized equipment for tank cleaning.

The Gama-Jet technology, he explained, â&#x20AC;&#x153;is a 3D tool that cleans every part of your tank, without a conďŹ ned space entry. You can put it though the top, through the door or manway, or through any four-inch ďŹ&#x201A;ange. We used it at Apache and PetroBakken with great success. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s a long piece of pipe, and the tool threads onto the end. You can run it at high pressure, low volume, or low pressure, high volume. Weâ&#x20AC;&#x2122;ve had it for quite some time.â&#x20AC;? â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s safer, cheaper, and faster. Thereâ&#x20AC;&#x2122;s zero tank entry to it.â&#x20AC;?

Hagel said the system was promoted alot in the Macklin/Provost area. He plans on doing the same in southeast Saskatchewan. ɸ Page B10

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B10

PIPELINE NEWS January 2013

Dry and wet steam available on steamer units

Clean Harbors has expanded its operaĆ&#x;ons in Arcola since establishing the locaĆ&#x;on three years ago. Its lodging services will soon have 80 beds capacity, while their local Ĺ&#x2021;eet now includes 25 units.

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Éş Page B9 Another product line is Zyme-Flow. â&#x20AC;&#x153;We are the only ones that have that chemical. Itâ&#x20AC;&#x2122;s an H2S, LEL, benzene and sulďŹ de inhibitor. Itâ&#x20AC;&#x2122;s used in conjunction with the Gama-Jet for tank cleaning. Itâ&#x20AC;&#x2122;s a cost-eďŹ&#x20AC;ective alternative to using ďŹ reďŹ ghting foam. It interacts with gases and totally neutralizes it.

Warming things up In the wintertime, a key portion of the business is keeping things warm.

That means the steamers are kept running 24 hours a day to be ready to go when called. They try to keep the hydrovacs and combo units inside.

Up until early December, he noted, â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;ve had a pretty mild winter.â&#x20AC;?

The company has expanded its steamer service. Hagel said, â&#x20AC;&#x153;We had three before. We have six now. They range from 750,000 BTU to 1.2 million BTU. They do dry steam and wet steam. We can run one or two dry steam wands at a time.â&#x20AC;?

All six units are rigged in a similar fashion.

Dry steam is accomplished via a separation pot. The water drops out in the steam pot and returns to the tank. The result is minimal water vapour. â&#x20AC;&#x153;We usually run at 150 to 160 Celsius. That seems to make the best dry steam. Dry steaming lets us be more eďŹ&#x192;cient while steaming. â&#x20AC;&#x153;The guys are fully trained and competent,â&#x20AC;? he said of the operators. They can send one or two men out on a job, or even run 24-hour crews, if needed.

The frac heater has a 5,000 litre fuel tank, and can run for 12 straight hours. It has two seven million BTU units. â&#x20AC;&#x153;We can run them in series or parallel. You can do two separate jobs or combine them.â&#x20AC;?

Glycol and methanol â&#x20AC;&#x153;We rent glycol mixture and 50/50 methanol mix for pipeline testing,â&#x20AC;?

Hagel said, pointing out the tank farm at the back of the compound. There are multiple tanks, and a ďŹ lter system to ďŹ lter returned product. The products are tested by Carlyle-based PureChem Services on a regular basis.

Explaining the process, he said, â&#x20AC;&#x153;Theyâ&#x20AC;&#x2122;ll say we need 100 cubes to test so many metres of pipe. Weâ&#x20AC;&#x2122;ll take a pressure truck with pressure testing equipment. Tank trucks haul I to the site. The pressure truck will ďŹ ll the line and bump it to test pressure. â&#x20AC;&#x153;The pipeline company will have a protocol for how long it sits. The line is dewatered, and itâ&#x20AC;&#x2122;s brought back here, ďŹ ltered, and readied for the next job.â&#x20AC;?

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ɸ Page B11

PIPELINE NEWS January 2013

B11

Being community-minded is key Brian Hagel points out the tank farm used for methanol and glycol. Hagel and his family moved to Carlyle this past summer, coming from Macklin.

Steamers are kept going throughout the day, ready to deploy.

All-inclusive deals available Éş Page B10 For larger scale jobs, they can utilize the tank rentals from Lampman. It can be more cost eďŹ&#x20AC;ective to rent a tank for some projects than to have several trucks on hand. â&#x20AC;&#x153;We can put an all-inclusive package together for the company, a one-stop shop,â&#x20AC;?

Hagel said. â&#x20AC;&#x153;We can haul our own water. Itâ&#x20AC;&#x2122;s the same as the hot oiler and frac heater. We can supply our own ďŹ&#x201A;uids and diesel fuel.â&#x20AC;? â&#x20AC;&#x153;If you phone use about a frac heater job, we can ďŹ ll your tanks with water, do the frac heating, steam your valves, do coil cleanouts and have a vac truck on site for bleeding lines.â&#x20AC;?

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Southeast Saskatchewan area manager Brian Hagel has been with Clean Harbors, in various forms, for 13 years. â&#x20AC;&#x153;I started in â&#x20AC;&#x2122;99 with Winterhawk Enterprises. I had one vac truck leased with them. When Winterhawk merged with Eveready Energy Services, I go on as a project manager/ ďŹ eld supervisor around 2006.â&#x20AC;?

He had moved to Macklin in 1993. â&#x20AC;&#x153;I was born and raised in Allan, Saskatchewan. My parents farmed there.â&#x20AC;?

He hauled crude for ďŹ ve years before getting into the vac truck business.

He became area manager for Macklin/ Provost in 2009. As part of taking on that job, he sold oďŹ&#x20AC; his truck assets so as to not be in a conďŹ&#x201A;ict of interest. â&#x20AC;&#x153;Macklin/Provost was one of their largest production services branches,â&#x20AC;? Hagel said.

This past summer Hagel, his wife and two kids came to southeast Saskatchewan. â&#x20AC;&#x153;We

moved to Carlyle, bought a house.â&#x20AC;?

He said thereâ&#x20AC;&#x2122;s a lot of nice people in Carlyle. â&#x20AC;&#x153;Everyoneâ&#x20AC;&#x2122;s waving at you, shaking your hand.â&#x20AC;? â&#x20AC;&#x153;I want to be a community-minded company â&#x20AC;&#x201C; donate to minor hockey, ball, the ďŹ re department. I was big on that in Macklin. To be successful, you have to be tight-knit. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s a key to success.â&#x20AC;?

Having worked in the heavy oil region for much of his career, Hagel noted, â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s a big change from heavy, sandy, gassy oil to here. This is light, full of sulďŹ des, and really waxy.

The hydrogen sulďŹ de concentrations are also much lower, but he still insists they take the extra precautions. â&#x20AC;&#x153;Do it by the book, do it safely,â&#x20AC;? he said.

In Macklin, Hagel found about half of their work was associated with service rigs. Thatâ&#x20AC;&#x2122;s different in southeast Saskatchewan, with service rig work being a lower fraction of the business.

B12

PIPELINE NEWS January 2013

More than just Ă&#x20AC;ve types of salad

Linda McKerchar has been a camp cook for 16 years. Early on, she realized itâ&#x20AC;&#x2122;s important to know a wide variety of salads. Sheâ&#x20AC;&#x2122;s currently the camp cook at Clean Harborsâ&#x20AC;&#x2122; camp in Arcola.

Arcola â&#x20AC;&#x201C; Linda McKerchar of Luseland now looks after cooking for the Clean Harbors camp in Arcola, but her history in the oilpatch is long and varied. â&#x20AC;&#x153;I used to be a trucker,â&#x20AC;? she said. â&#x20AC;&#x153;I hauled fuel for Esso

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and oil for Gibsons with my husband. â&#x20AC;&#x153;I was the ďŹ rst woman ever to work a ďŹ&#x201A;ushby in Lloydminster, Alberta. They said I wouldnâ&#x20AC;&#x2122;t last two weeks.

I lasted a few years.â&#x20AC;?

That stint was in the 1980s. She noted, â&#x20AC;&#x153;It was a lot slacker.

You only wore coveralls if you didnâ&#x20AC;&#x2122;t want oil on you.â&#x20AC;?

Linda and her husband, John, have been in Luseland for 12 years now. â&#x20AC;&#x153;Heâ&#x20AC;&#x2122;s a heavy equipment operator for Brooks Asphalt, so he doesnâ&#x20AC;&#x2122;t work at home either. Heâ&#x20AC;&#x2122;s working at Oyen now.â&#x20AC;?

These days Linda does rotations as a camp cook. Currently she does a three-weekon, one-week-oďŹ&#x20AC; rotation. With a husband who also works on the road, getting together can be a challenge. â&#x20AC;&#x153;I went to visit him in Oyen. Then he got shut down. I made him a moose supper and sent him on his way,â&#x20AC;? she said.

The couple have three daughters and ďŹ ve grandchildren, all of whom live in the Lloydminster area. One son-in-law has worked in the patch in surveying.

Sheâ&#x20AC;&#x2122;s been a cook for 16 years. â&#x20AC;&#x153;I started years ago because I didnâ&#x20AC;&#x2122;t know what I wanted to do. I asked my husband, â&#x20AC;&#x2DC;What do you think of camps?â&#x20AC;&#x2122;â&#x20AC;?

It was a quick

learning experience. â&#x20AC;&#x153;I didnâ&#x20AC;&#x2122;t realize there were so many types of salads.

What counts is salads, and how many combinations. I knew about ďŹ ve. Well, I got my eyes opened.â&#x20AC;?

Continually varying the menu is a challenge. â&#x20AC;&#x153;When you go into a new camp, you use all your specialities that you know will go well.

But after awhile, itâ&#x20AC;&#x2122;s challenging coming up with something different for months at a time.â&#x20AC;?

She gets some of her ideas from the Food Networksâ&#x20AC;&#x2122;s Diners, Drive-Inns and Dives. However, it often comes down to the basics. â&#x20AC;&#x153;I ďŹ nd mostly the guys like meat and potatoes. On the rigs, back in the days, a lot of the buys were hands from Saskatchewan,â&#x20AC;? she said, noting that was there preference.

Most of her camp cooking has been done during the winters. Arcola is about the same distance from home as work in northern Alberta. That can mean a not-so-fun drive to work to start a rotation. â&#x20AC;&#x153;Yesterday I wish I wasnâ&#x20AC;&#x2122;t driving,â&#x20AC;? she said. â&#x20AC;&#x153;I got snowed in.â&#x20AC;?

However, a little snow wonâ&#x20AC;&#x2122;t stop Linda. â&#x20AC;&#x153;I love it. I donâ&#x20AC;&#x2122;t think I could quit. Thereâ&#x20AC;&#x2122;s not many places where you get room and board.

You just walk over in the morning.â&#x20AC;?

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PIPELINE NEWS January 2013

B13

Husky Upgrader bucks reliability trend Â&#x201E; By Pat Roche (Daily Oil Bulletin) Lloydminster â&#x20AC;&#x201C; Husky Energy Inc.â&#x20AC;&#x2122;s heavy oil upgrader at Lloydminster on the Alberta/Saskatchewan border has reached record reliability levels, said Rob Peabody, Huskyâ&#x20AC;&#x2122;s chief operating oďŹ&#x192;cer. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re now achieving about 97 per cent eďŹ&#x20AC;ective capacity utilization of the upgrader, up from about 90 per cent a few years ago,â&#x20AC;? he told Huskyâ&#x20AC;&#x2122;s investor day conference with analysts in Toronto on Dec. 4.

Peabody didnâ&#x20AC;&#x2122;t oďŹ&#x20AC;er further speciďŹ cs, but the company disclosed in its third quarter results that throughput in the three months ended Sept. 30 averaged 81,600 bbls a day, up from 75,600 bbls a day in the third quarter of 2011. Throughput includes diluent returned to the ďŹ eld.

A planned turnaround was completed at the upgrader in the second quarter and it later achieved record monthly output, the company said.

Feedstock for the upgrader is heavy oil from northeastern Alberta and western Saskatchewan, and bitumen from Huskyâ&#x20AC;&#x2122;s Tucker oilsands project, which is 30 kilometres northwest of Cold Lake, Alberta.

An analyst asked how the company achieved a 97 per cent utilization rate when its peers have been running at much lower rates. â&#x20AC;&#x153;We have a pretty consistent feedstock coming in from both the Alberta gathering system and the Saskatchewan gathering systems. That makes a world of diďŹ&#x20AC;erence,â&#x20AC;? Peabody said.

Secondly, he said the company has strived over the last two years to improve reliability. â&#x20AC;&#x153;Everybody on that site is committed to getting safe and reliable operations. There was a lot of hard work that went into it.â&#x20AC;?

Citing one example of a change, he said upgrader metrics that used to be looked at weekly or monthly are now monitored hourly. â&#x20AC;&#x153;And you can see a lot more about whatâ&#x20AC;&#x2122;s going on in the facility when youâ&#x20AC;&#x2122;re in real time looking at performance metrics of the individual

units,â&#x20AC;? he said. â&#x20AC;&#x153;And that has allowed us to catch problems earlier, get onto them faster and avoid shutdown situations.â&#x20AC;?

Husky CEO Asim Ghosh suggested the improvement is â&#x20AC;&#x153;part of the larger cultural transformationâ&#x20AC;? being promoted within the company. He suggested the emphasis is on performance more than planning. â&#x20AC;&#x153;We strategize for three days in the year and execute for 362.â&#x20AC;? â&#x20AC;&#x153;We are trying to get a lot more predictable as a company than we have in the past,â&#x20AC;? Ghosh said.

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B14

PIPELINE NEWS January 2013

Stick with McMillan calendar in 2013

By GeoďŹ&#x20AC; Lee Regina â&#x20AC;&#x201C; The Mayans messed up. The world didnâ&#x20AC;&#x2122;t end Dec.

3D

21, 2012 with the expiry of their calendar to the relief of Energy and Resources Minister Tim

McMillan.

There will be another sale of Crown petroleum and natural

MAINTENANCE Cell numbers: 483-8024, 483-7024, 483-8148

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gas dispositions will be held on Feb 4, 2013 â&#x20AC;&#x201C; according to the McMillan calendar.

That sale could top the ďŹ nal 2012 sale of Crown petroleum and natural gas and oil sands rights in December that generated $11.5 million for the province, pushing total revenues for the year to $105.7 million.

That total fell way short of the $248 million for 2011 â&#x20AC;&#x201C; which

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was only the fourth best on record for land sales revenues.

The bragging rights for the December 2012 sale pertain to an industry bid average of $598 per hectare for oil and gas rights, which is more than double the $218 per hectare received by Alberta in their last sale of oil and gas rights.

The December sale also featured ďŹ ve oil sands special exploratory permits north of the Primrose Lake Air Weapons Range, two of which received acceptable bids. â&#x20AC;&#x153;It is encouraging that more than $1 million in bonus bids was received for two of the oil sands permits that were oďŹ&#x20AC;ered in this sale,â&#x20AC;? said Minister Responsible for Energy and Resources Tim McMillan. â&#x20AC;&#x153;In addition to a bonus bid, these permits require minimum

work commitment expenditure to be spent in exploration over the ďŹ ve-year term of the permits. â&#x20AC;&#x153;The province is cautiously optimistic that the results of this exploratory work will provide further insight into the potential of the resource in the province.â&#x20AC;?

The December sale included 89 lease parcels that brought in $8.9 million in bonus bids, two petroleum and natural gas exploration licences that sold for $1.6 million, and two oil sands special exploratory permits that received $1 million.

The Weyburn-Estevan area received the most bids with sales of $6.1 million. The Lloydminster area was next at $2.6 million, followed by the Swift Current area at $1.8 million and the Kindersley-Kerrobert area at $982,890. ɸ Page B15

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PIPELINE NEWS January 2013 Éş Page B14 The highest price for a single parcel was $1.6 million. Scott Land & Lease Ltd. acquired this 1,327-hectare exploration licence south of Gull Lake.

The highest price on a per-hectare basis was $8,412. Stomp Energy Ltd. bid $136,188 for a 16-hectare lease parcel east of Lloydminster.

Weyburn-Estevan Area (numbers rounded oďŹ&#x20AC;) The top purchaser of acreage in this area was Prairie Land & Investment Services Ltd., who spent $1.6 million to acquire two lease parcels.

The highest price paid for a single lease in this area was $1.1 million by Prairie Land & Investment Services Ltd. for a 1,036 hectare parcel situated 13 kilometres east of the Oungre RatcliďŹ&#x20AC;e Beds Pool, three kilometres south of Oungre.

The highest dollar per hectare in this area was received from Absolute Land & Lease Ltd. which paid $5,124/hectare for a 32.37 hectare parcel located 3 kilometres west of the Openshaw Frobisher Beds Pool, 30 kilometres west of Rockglen.

Lloydminster Area The top purchaser of acreage in this area was Scott Land & Lease Ltd. that spent $1.1 million to acquire one lease parcel, one exploration licence and two oil sands special exploratory permits.

The top price paid for a single lease in this area was $338,733 by Prairie Land & Investment Services Ltd. for a 259 hectare parcel situated 2 kilometres north of the Mervin Waseca Sand Oil Pool, three kilometres north of Turtleford.

The highest price paid for a single licence in this area was $62,564 by Scott Land & Lease Ltd. for a 2,331 hectare block situated 35 kilometres

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north of Glaslyn.

The highest dollar per hectare in this area was received from Stomp Energy Ltd, who paid $8,411/hectare for a 16.19 hectare parcel located within the TangleďŹ&#x201A;ags Mannville Sands Oil Pool, 30 kilometres east of Lloydminster.

Swift Current Area The top purchaser of acreage in this area was Scott Land & Lease Ltd. that spent $1.5 million to acquire one exploration licence.

The top price paid for a single lease in this area was $112,500 by Jarrod Oils Ltd. for a 65.15 hectare parcel situated adjacent to the Antelope Lake North Success-Roseray Sand Oil Pool, 20 kilometres north of the Town of Gull Lake.

This is also the highest dollar per hectare in this area at $1,727/hectare.

The top price paid for a single licence in this area was $1.5 million by Scott Land & Lease Ltd. for a 1,327.37 hectare block situated partially within the Covington Upper Shaunavon Oil Pool, 10 kilometres south of the Town of Gull Lake.

Kindersley-Kerrobert Area The top purchaser of acreage in this area was Scott Land & Lease Ltd. that spent $277,763 to acquire one lease parcel.

The top price paid for a single lease in this area was $277,763 by Scott Land & Lease Ltd. for a 64.75 hectare parcel situated within the Whiteside Ribstone Creek and Milk River Gas Pools, 15 kilometres northwest of Kindersley.

The highest dollar per hectare in this area was received from Windfall Resources Ltd., who paid $6,263/hectare for a 16.29 hectare parcel located within the Luseland Viking Sand Oil Pool, 30 kilometres northwest of Kerrobert.

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B16

PIPELINE NEWS January 2013

New gym attracts oilÀeld clientele Taralyn French spent the last summer and fall working with PetroBakken in Estevan.

Now she’s opened up her own gym in Arcola with the help of her parents, Ralph and Colleen French. On top of that, she’s going back to the University of Regina to conƟnue her educaƟon and kinesiology degree program.

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Arcola – With some space available in her dad’s shop in Arcola, Taralyn French saw an opportunity.

On Dec. 3, that opportunity was realized, with the opening of No Limits Fitness Centre, in Arcola.

Prior to that French worked in administration at PetroBakken’s Estevan office. She will also be returning to the University of Regina in January for her second year of an education and kinesiology program. She took the most recent semester off from school.

The 19-year-old had been attending North Idaho College on a volleyball scholarship, but found that her credits wouldn’t transfer to Canadian schools. Thus she shifted to the U of R. “Dad had the space. I like to work out,” said Taralyn. Her parents, Ralph and Colleen French, are co-owners in the venture. You might recognize the name from fluid-hauling firm, R. French Transport, based in Forget.

“We mentioned it to my friends.

They said it was a good idea. Everyone thought it was awesome.”

Work started last June. The facility is on two stories, with much of the work-out equipment downstairs, and a studio and cardio area upstairs.

There are eight cardio machines and 10 cable machines, in addition to free weights.

Just two days after opening, Taralyn said there had been lots of oilfield interest. “Lots of people on service rigs, lots of people from Alberta,” she said. Some stay at the Clean Harbors camp, others at the nearby Chaparral Inn. Some companies offer fitness benefits, she noted. “It works well with this,” she said.

The gym will offer 24-hoursa-day, seven-days-a-week access to members, who will be provided with a key.

While Taralyn is back at school, personal trainer Laurie James will look after the new gym. She could be seen taking her two sons through a cardio workout on Dec. 4. Part of that workout was an “agility ladder," a cloth ladder around which a person quickly moves their feet in and out of the different squares. Think of it as a fast moving game of hopscotch, but with faster moving feet and less hopping.

Taralyn will be home on weekends to look after the gym. “I do like to help people,” she said, adding she liked working with children as well.

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PIPELINE NEWS January 2013

B17

Synthetics make a difference Estevan â&#x20AC;&#x201C; When it gets cold, be sure to match your lubricants to the temperature. And synthetics do make a diďŹ&#x20AC;erence.

Thatâ&#x20AC;&#x2122;s the message from Terry Nistor, owner of Nistorâ&#x20AC;&#x2122;s Farm Service Ltd., the Shell Lubricants dealer in Estevan and Regina. Heâ&#x20AC;&#x2122;s been in the lubricant business for a long time. â&#x20AC;&#x153;I started when I was 19 or 20, driving a fuel truck for Shell,â&#x20AC;? he said. â&#x20AC;&#x153;I did that for six years and took over in Fort Quâ&#x20AC;&#x2122;Appelle, then Kelliher, Indian Head, Regina, Moose Jaw, Findlater, Weyburn and Estevan.â&#x20AC;?

However, when Royal Dutch Shell bought out Shell Canada in 2007, they got out of commercial wholesale fuel sales, and their cardlock division was sold to Flyng J, now Pilot Flying J. They stayed in the lubricant business, however, and asked Nistor if he would take care of their wholesale market in the area. He chose Estevan and Regina and the remaining locations were shut down.

Nistor manages the Regina Pilot Flying J cardlock as well. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s busy. In Regina, itâ&#x20AC;&#x2122;s agriculture.

Thereâ&#x20AC;&#x2122;s lots of oilďŹ eld, trucking, construction. We do a fairly big industrial business. â&#x20AC;&#x153;Synthetic oil lowers your pour point. Itâ&#x20AC;&#x2122;s a manufactured, manmade oil. The stability is

better. It doesnâ&#x20AC;&#x2122;t break down as quickly. It lasts longer. â&#x20AC;&#x153;It increases oil change intervals from 5,000 to 10,000 kilometres. On tractors, semis, you have longer intervals, but you still need to change your air ďŹ lters, and do your chassis lubrication.â&#x20AC;?

And, most importantly at this time of year, â&#x20AC;&#x153;It starts better in winter, too. â&#x20AC;&#x153;Your pourability is better than a mineral oil. The more ďŹ&#x201A;uid that oil is, the easier it is to start the vehicle.â&#x20AC;?

Nistor personally used to have three semis hauling grain. At -30 C, he said, â&#x20AC;&#x153;We were taking out starters, things werenâ&#x20AC;&#x2122;t turning over. We switched to 0W40 full synthetic, and it started like summer.â&#x20AC;? â&#x20AC;&#x153;When do you see the most engine wear?

At start-up. If the oil is too heavy, and itâ&#x20AC;&#x2122;s cold, thereâ&#x20AC;&#x2122;s no lubrication on those bearings.â&#x20AC;?

He went on, â&#x20AC;&#x153;The recommendation now is 5W-40 full synthetic year round for diesel engines. A full synthetic oil will stay cleaner, longer, than a regular mineral oil. Some highway tractors are running up to 50,000 kilometres on synthetic, but I wouldnâ&#x20AC;&#x2122;t recommend that.â&#x20AC;? â&#x20AC;&#x153;When you start, stop and are idling, you change it more often compared to a highway tractor going from here to Vancouver.â&#x20AC;?

One frac company, he noted, changes oil

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in their trucks every 250 hours. Considering those trucks can run 24 hours a day, that makes for frequent changes.

For heavy equipment, he said some just go with a lighter hydraulic oil. â&#x20AC;&#x153;The industry here uses ISO 22 hydraulic oil yearround. It makes a big diďŹ&#x20AC;erence.â&#x20AC;? â&#x20AC;&#x153;A lot of people donâ&#x20AC;&#x2122;t understand. If youâ&#x20AC;&#x2122;re doing a lot of work in the winter, itâ&#x20AC;&#x2122;s in your best interest to change it. Gravel trucks use 22 all year round. It doesnâ&#x20AC;&#x2122;t get hot. It goes up and goes down.â&#x20AC;?

In some cases, specialty oils are required. Nistor said Shell makes a non-conductive hydraulic oil, called Tellus Arctic Oil, that does not conduct static electricity. Itâ&#x20AC;&#x2122;s useful for items like cranes in reďŹ neries.

When it comes to grease, he said, â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;ve got summer grease, and weâ&#x20AC;&#x2122;ve got winter grease.

Summer grease doesnâ&#x20AC;&#x2122;t want to go in.

But he noted, â&#x20AC;&#x153;You can buy a winter grease with a -45 C pour point. Itâ&#x20AC;&#x2122;s pumpable, so it goes. â&#x20AC;&#x153;A big one we sell is aviation helicopter grease with a -60 C rating. A lot of the oil-

patch uses it on external valves on tank farms.

Price doesnâ&#x20AC;&#x2122;t seem to be a factor. Itâ&#x20AC;&#x2122;s the right grease for the right application,â&#x20AC;? Nistor said. â&#x20AC;&#x153;We donâ&#x20AC;&#x2122;t recommend you use a winter grease in the summer. It just runs out.â&#x20AC;? â&#x20AC;&#x153;In Estevan, the oilpatch is probably 75 per cent of our business.

In the last four years, because of the oil sector, business has deďŹ nitely increased. There are lots of opportunities to grow your business,â&#x20AC;? Nistor concluded.

Terry Nistor owns Nistors Farm Service Ltd.

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B18

PIPELINE NEWS January 2013

Invicta uses rail to reach markets Continued development drilling for light oil at Lucky Hills near Kindersley, Saskatchewan, helped Invicta Energy Corp. increase third quarter 2012 production to 387 boe per day from 145 boe per day during the comparable period last year.

Output for the nine months ended Sept. 30, 2012, was also improved as the company averaged 320 boe per day versus 114 boe per day for the prior year period.

Invicta said improved income and

funds ďŹ&#x201A;ow from operations for the three and nine months ended Sept. 30, 2012, was due to the companyâ&#x20AC;&#x2122;s continued successful drilling programs at Lucky Hills and the related operating netbacks achieved by these oil wells.

Revenues for both the three and nine months ended Sept. 30, 2012, were both improved year-over-year.

Early in the third quarter, the company completed and placed on production four wells from its second quarter program. In September, four

wells of the second-half 2012 Kindersley (Lucky Hills) drilling program were drilled. Subsequent to Sept. 30, 2012, an additional six wells were drilled, all at a 100 per cent success rate.

The completion and multi-stage fracturing of the majority of these wells began after the quarter end due to availability of services. As of Nov. 21, all wells had been completed and placed on production. During 2012, the company had drilled a total of 21 (11.1 net) wells on this property.

Based on the last 10 wells of its recent drilling program, Invicta said that drilling costs have been reduced as a result of increased eďŹ&#x192;ciencies. The company estimates that the all-in on stream costs of these horizontal wells are averaging $900,000 to $950,000.

The oil production rates of the most

recent program have exceeded internal forecasted average type curve.

Invictaâ&#x20AC;&#x2122;s two facilities were expanded in the third quarter and an additional one is being constructed to handle the additional production volumes from the recent drilling program. It was anticipated that one additional well would be drilled at 100 per cent working interest prior to the end of 2012 on lands acquired in the second quarter. Plans are currently underway for an active ďŹ rst-half 2013 program.

Invicta noted that since April 2012, it has transported up to 60 per cent of its production by rail in order to increase netbacks and mitigate a portion of the current diďŹ&#x20AC;erentials in Edmonton Light to West Texas Intermediate. This process is expected to continue into 2013.

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PIPELINE NEWS January 2013

B19

PetroBakken's current production at 51,000 boepd PetroBakken Energy Ltd. announced on Dec. 10 that production in early December had reached approximately 51,000 boepd (based on field estimates), up 6,000 boepd since early November as the company continued to execute on its 2012 capital plan.

Production growth primarily came from the Bakken and Cardium business units, which are its most active areas.

Since the end of the third quarter, the company drilled 67 net wells and placed 76 net wells on production. This includes 26 net wells drilled and 33 net wells placed on production in the Bakken business unit, 28 net wells drilled and 35 net wells placed on production in the Cardium business unit, 12 net wells drilled and eight net wells placed on production

in the Conventional business unit, and one net well drilled in its new play areas.

For the remainder of December, the company planned to bring on production 21 net wells, eight in each of the Bakken and the Cardium business units and five in the conventional business unit.

PetroBakken recently completed the Brazeau facility in the Cardium and tied-in a portion of the planned wells to this facility, which added approximately 1,200 boepd of production. The company expected the completion of its tie-in program and optimization of this facility would add an additional 2,000 boepd of production prior to year-end.

The results of these activities, together with the natural declines attributable to the production base,

will have put the company on pace to achieve its 2012 exit rate production guidance of 52,000 to 56,000 boepd.

The recently announced acceleration of the company’s 2013 capital program is underway and its continuous drilling program, which currently consists of 11 drilling rigs operating – six in the Cardium, two in the Bakken, one in conventional and two in the Swan Hills resource play – should provide a steady inventory of new wells to bring onstream in early 2013.

New additions to the company’s facility infrastructure and pipeline networks should also alleviate some seasonal production losses during spring breakup due to shut-in production and road bans, the company said.

B20

PIPELINE NEWS January 2013

PIPELINE NEWS January 2013

B21

Jackie White is part of the management team of Stampede Drilling, with a focus on safety.

Stampede Drillingâ&#x20AC;&#x2122;s ÄŽrst rig went to work in late November.

Crude Oil & Saltwater Transfers Hot Fresh Water

Centrifuges Devin Hala, leĹ&#x152;, Bill Devins and David Shewchuk grab a Timmies in the rig managerâ&#x20AC;&#x2122;s shack. Devinâ&#x20AC;&#x2122;s says that people are the most important part of a rig, not the iron.

Shale Shakers Shaker Screens Drilling Fluids 805 Government Road S Weyburn, SK 306â&#x20AC;˘842â&#x20AC;˘0307

Photos by Brian Zinchuk

The workers make the difference Estevan â&#x20AC;&#x201C; The iron might be shiny, but itâ&#x20AC;&#x2122;s the men who make the diďŹ&#x20AC;erence.

Indeed, talking to Bill Devins, of Stampede Drilling on Nov. 23, a couple days before their ďŹ rst rig was about to go to work on its ďŹ rst hole, itâ&#x20AC;&#x2122;s hard to get him to say much about the

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Carson Energy Services works with clients from 13 locaĆ&#x;ons across Alberta and Saskatchewan, serving a footprint covering both those provinces and southwest Manitoba. â&#x20AC;˘ Saskatoon â&#x20AC;˘ Swift Current â&#x20AC;˘ Emerald Park â&#x20AC;˘ Lampman â&#x20AC;˘ Virden â&#x20AC;˘ Halbrite â&#x20AC;˘ Alida â&#x20AC;˘ Wainwright â&#x20AC;˘ Lloydminster â&#x20AC;˘ Calgary â&#x20AC;˘ White City â&#x20AC;˘ Regina â&#x20AC;˘ Carlyle

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equipment. Instead, he stressed the quality of their staďŹ&#x20AC;. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;ve got the best men in southern Saskatchewan. A rigâ&#x20AC;&#x2122;s a rig.

Weâ&#x20AC;&#x2122;ve got the best fellows, without a doubt. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re going to lead the industry in safety.

Theyâ&#x20AC;&#x2122;re going to follow us.â&#x20AC;? â&#x20AC;&#x153;All of our fellows are going to be trained above and beyond,â&#x20AC;?

Devins said.

Rig manager David Shewchuk said they had no trouble ďŹ nding people.

Some of the safety elements include a

lockout on the catwalk controls on the drill ďŹ&#x201A;oor. â&#x20AC;&#x153;You have to deactivate the lockout so you canâ&#x20AC;&#x2122;t bump the control.

You have to actively disengage the lockout,â&#x20AC;?

Devins said.

This is done by holding down a button on the left side of the control box. Let go of the button, and the controls are deactivated.

The rig is equipped with two 455 kilowatt Caterpillar C15 gen sets, and two F-1000 mudpumps driven by C32 Caterpillar engines. Each mudpump package has a Rouse

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single-speed clutch. The engine packages come from Weyburnâ&#x20AC;&#x2122;s Southern Industrial/Rouse Industries.

The drawworks is a Ratmaster 850 with an 800 horsepower Caterpillar C18 engine. It has a Caterpillar electric automatic transmission.

The rig managerâ&#x20AC;&#x2122;s shack came from Denby Trailer Ltd. of Weyburn.

The doghouse is a little diďŹ&#x20AC;erent in that while it has a slideout,

that slideout does not enclose the drillerâ&#x20AC;&#x2122;s station. Instead, it slides outward, expanding the size of the doghouse.

Thereâ&#x20AC;&#x2122;s a cabinet inside full of safety equipment.

The telescopic double derrick was built

by Do-All Industries, along with the substructure and buildings. Assembly took place in the Do-All Estevan yard.

The companyâ&#x20AC;&#x2122;s second rig is expected to be ready in early 2013.

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The company will focus on southeast Saskatchewan, but will also venture into southwest Manitoba. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re going to let our actions speak. The men are what make the rig. You get the right people, they run well,â&#x20AC;?

Devins concluded.

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B22

PIPELINE NEWS January 2013

Janice Harris and Jim Harris are siblings who both work for the family business, Harris OilĮeld ConstrucƟon.

Harris OilÀeld Construction has offered a variety of services for 33 years

Strength In Our Resources #6 - 461 King St. • Estevan, SK 637-3460 www.petrobakken.com

Estevan – Harris Oilfield Construction has been working in the southeast Saskatchewan oilpatch for 33 years, and continues to be a strong family business.

The company is owned by Doug and Bertha Harris, as well as their son Jim. Their daughter Janice takes care of dispatch and some of the management duties along with her brother Jim. Doug and Bertha have stepped back a bit after decades running the firm.

The company has 11 staff members, including the owners.

The fleet is made up of five vac trucks, one pressure truck, one oil truck and two steamers. There’s also a semi and a tri-axle tanker.

The shop’s appearance from the road is deceptive. After having been expanded to the rear of the property twice over the years, it’s a lot deeper than one would expect. But when your specialty is dealing with fluids, a warm shop is important.

Most of the company’s work is relatively close to Estevan. They don’t venture into Manitoba.

The company’s been operating steamers for quite a while, said Janice. They see use in thawing lines and valves, and the occasional fire hydrant for the city.

During the summer that equipment gets used for washing and tank cleaning.

“I’ve been on them, but it’s not my favourite,” she said. “I’m a vac truck operator. But we’ve all done it.”

The vac trucks see use in a variety of applications. “We do anything from septic to oil,” she said.

They do septic work, but not portapotties, she added.

Such equipment can be in high demand, with the typical, “I need you right now” phone calls. Janice’s response? ɸ Page B23

PIPELINE NEWS January 2013 Chrystal Schad wields a steamer wand towards the camera. The steamer operator works with Harris OilĮeld ConstrucƟon Ltd. The 22-year-old did pipeline work in BriƟsh Columbia for four months before returning to Estevan.

Photo by Brian Zinchuk

ɺ Page B22 “Everybody says that. I’ll do the best I can.”

Harris Oilfield Construction has been CORcertified for at least five years.

The company is a dropoff centre for waste oil, such as used crankcase oil from farm motors, trucks, and the like. They also collect waste oil from a few sites in Estevan.

Jim Harris takes care of their crew truck, primarily working with his son, Ryan, with occasional help from others.

The crew truck does facility work, pipelines, and all sorts of other work, he noted. “One hundred per cent of the work is for CNRL,” he said.

“We float all over – Frobisher, Steelman, Lampman, Innes, Viewfield. They like smaller guys.

We know the area, and they don’t have to train you.

I started working on my own crew when I was 21 for Gulf at Lampman.

“I’ve been doing it since I was 15 years old, working in the summer painting pumpjacks,” Jim said. He’s now 45, and has spent his career with the family firm. Janice rejoined the company 11 years ago on a steady basis.

In the back of the shop one finds the an IMC stock car, which is no surprise, since Jim is a fixture at the Estevan Motor Speedway.

“I’ve been racing since ’81,” he said.

His car is #17, while his daughter, Alyssa, drives #17A. Ryan drives #18.

Jim notes his father, Doug, has been supportive.

“Dad’s all over these cars when we’re not here. He’ll know exactly what rim has been bent, and what tire has been cut.”

CLIFF NANKIVELL TRUCKING LTD.

Kalvin Nankivell President OfÀce: (306) 462-2130 Fax: (306) 462-2188

Claudia Mullis Vice-President Box 123 Kisbey, SK S0C 1L0 nankivelltrucking@signaldirect.ca

When your wellsite, lease or tankage requires containment, call JK Containments!

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Jayson King 306.736.9169 Stoughton, SK www.jkcontainments.com

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B23

B24

PIPELINE NEWS January 2013

The new Microtel Inn & Suites in Estevan will be the prototype for dozens more hotels to come.

Photo by Brian Zinchuk

OilĂ&#x20AC;eld Electrical Construction & Service â&#x20AC;˘ Instrumentation â&#x20AC;˘ Motor Sales, Rewinds & Repairs

Estevan, SK: Branch OfĂ&#x20AC;ce 306-634-5617 Lloydminster, SK 306-825-3363 Kindersley, SK 306-463-6462 Swift Current, SK 306-773-5626

Estevanâ&#x20AC;&#x2122;s Microtel a prototype for a wave of new hotels Estevan â&#x20AC;&#x201C; The cityâ&#x20AC;&#x2122;s latest hotel, the Microtel Inn & Suites by Wyndham, is the prototype for a wave of new hotels in Canada. The plan is for a total of 75 Microtels to open in Canada over the next 25 years.

The new hotel adds 79 rooms to the Estevan market, one thatâ&#x20AC;&#x2122;s seen continued pressure over the years even though numerous additional hotels having opened in the past three years.

The grand opening on Oct. 29 was unfortunately aďŹ&#x20AC;ected by poor weather, both in Calgary and Estevan. A plane chartered for dignitaries planning to attend had to be cancelled.

Catherine Burdett, director of marketing for MasterBUILT Hotels, acted as mistress of ceremonies. MasterBUILT Hotels is a joint venture between Superior Lodging Corp. â&#x20AC;&#x201C; one of Canadaâ&#x20AC;&#x2122;s largest and most successful hotel developers known for establishing the Super 8 and Wingate by Wyndham brands in Canada â&#x20AC;&#x201C; and Jayman MasterBUILT, one of Canadaâ&#x20AC;&#x2122;s premier residential builder developers over the past three decades.

She said there were 337 days of construction, 42,000 square-feet of ďŹ&#x201A;oor covering, over 100,000 square-feet of drywall, over 1,000 gallons of paint, and a little over $8 million in capital investment in the Estevan operation.

John Henderson, director of support, Microtel Inn & Suites, spoke of the brandâ&#x20AC;&#x2122;s expansion, saying, â&#x20AC;&#x153;The best is yet to come here in Canada.â&#x20AC;? â&#x20AC;&#x153;It gives us great pleasure to be able to open our very ďŹ rst Microtel by Wyndham in Estevan and provide the community with modern, high quality accommodation that meets the demands of todayâ&#x20AC;&#x2122;s business and leisure traveler,â&#x20AC;? said Eric Watson, VP of development. â&#x20AC;&#x153;With a booming economy and strong demand for quality lodging in the region, Estevan was a natural choice to launch our Microtel by Wyndham concept in Canada.â&#x20AC;? ɸ Page B25

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PIPELINE NEWS January 2013

B25

ɺ Page B24 He spoke of the company’s plans to start construction of a similar hotel in Weyburn in the spring. Lloydminster’s Saskatchewan side is also on the agenda for 2013 as well. Blackfalds and Fort McMurray are also planned in the same year.

Estevan’s hotel is the prototype. However, Timmins, Ont., will be the next to open.

There are currently two other Microtel Inn & Suites by Wyndham open in Canada in Woodstock and Parry Sound, Ont., both of which represent the brand’s older design concept.

Newly elected Estevan Mayor Roy Ludwig welcomed the new hotel.

A $5,000 donation was made to the St. Joseph's Hospital Foundation, which was accepted

by Roxy Blackmore.

There are six types of rooms in the Microtel. A basic standard has one queen-sized bed, while an upgraded standard has a queen-sized bed, fridge and microwave. There are similar rooms except with two beds available. There are accessible suites and business class. All rooms have queen-sized beds.

The Microtel adds something not seen in its competitors: a water slide. But while its pool, water slide and hot tub are highlights, the key thing is the parking lot full of work trucks.

The hotel offers complimentary deluxe hot continental breakfast, coffee, high-speed wireless Internet, weekday newspaper, indoor water park with hot tub, fitness centre, parking and business centre. Guests also have access to valet cleaning service, a copy/fax / printing service, and a locker room for oilfield workers to store their gear.

Microtel opened its Estevan location on Sept.

24. Manager Al Simoneau said business has been good, and it has picked up as it got colder. They have been running close to full during the week, often selling out two or three days a week. Weekends are slower, but that depends on what sports are going on in town, like hockey tournaments.

The hotel has a staff of 23, for the most part foreign worker who are permanent residents originating from Ukraine and India. Four of the Ukrainians have husbands who work on the rigs.

Simoneau noted that the clientele is mostly corporate and government. “Oilfield is at least 50 per cent of it.”

Eric Watson, leŌ, of Microtel Inn & Suites, leŌ, presents Roxy Blackmore of the St. Joseph's Hospital FoundaƟon with a cheque for $5,000, a donaƟon upon the hotel’s opening.

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B26

PIPELINE NEWS January 2013

Mission Hotshot has seĆŠled into a permanent locaĆ&#x;on now, with a shop and yard on Estevanâ&#x20AC;&#x2122;s Devonian Street. To owner Clinton Gibbons, it means theyâ&#x20AC;&#x2122;re here to stay.

Mission Hotshot secures permanent home

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Estevan â&#x20AC;&#x201C; Three years ago, Mission Hotshot Service Inc. was a ďŹ&#x201A;edgling outďŹ t, with two trucks and a lot of dreams. This past fall the company found a permanent home in an Estevan industrial park, and is continuing to grow.

As far as locations go, it would be hard to ďŹ nd a better one for a hotshot operation which spends a large portion of its time picking up loads along the supply store row on Estevanâ&#x20AC;&#x2122;s Kensington Avenue. Located on Devonian Street, they are right beside Weatherford Independent Pump Co., one of their frequent stops, and just behind TS&M. â&#x20AC;&#x153;We go there to pick up the pump ďŹ rst and then the rod string. On the way back, we drop oďŹ&#x20AC; the old rods elsewhere and then the pump is dropped oďŹ&#x20AC; last,â&#x20AC;? said Clinton Gibbons, who owns the outďŹ t with his wife Nicole. â&#x20AC;&#x153;Rod strings around about 50 to 60 per cent of our work.â&#x20AC;?

Itâ&#x20AC;&#x2122;s typical that whenever rods are pulled on a well, the pump comes out too, for replacement or servicing.

When Pipeline News did a ride-along with Mission Hotshot in February 2010, they had two trucks and two trailers. â&#x20AC;&#x153;I have six trucks and 11 trailers now,â&#x20AC;? Gibbons said. â&#x20AC;&#x153;The locationâ&#x20AC;&#x2122;s great. That was a selling feature, and the size of the yard, too. â&#x20AC;&#x153;Thereâ&#x20AC;&#x2122;s potential to build, and potential for a pipe yard for customers.â&#x20AC;?

They also have eight people â&#x20AC;&#x201C; six full-time and two-part time staďŹ&#x20AC;, and theyâ&#x20AC;&#x2122;re looking for another full-timer. Thus, it was time to have a more permanent home.

Like many start-ups, they had been operating out of the Gibbonsâ&#x20AC;&#x2122; home.

Having a shop means more overhead, but it also means things can be ďŹ xed inside. â&#x20AC;&#x153;Which is nice,â&#x20AC;? Gibbons said. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s better than my front yard, freezing, hoping the neighbours donâ&#x20AC;&#x2122;t drive over my legs sticking out.â&#x20AC;?

Prior to moving into the new location in September, they did have a quarter-acre yard north of the Estevan Comprehensive School. But with so many trailers, there was hardly room to move around. â&#x20AC;&#x153;It was just open ground. We barely ďŹ t eight trailers in there. Weâ&#x20AC;&#x2122;ve been looking for a nearly a year before we bought,â&#x20AC;? he said.

They had looked at various options, including building or buying. He had considered setting up on an acreage outside of Estevan, but that would have added travel time. ɸ Page B27

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PIPELINE NEWS January 2013

B27

â&#x20AC;&#x153;

In buying a shop, youâ&#x20AC;&#x2122;re part of the community. Youâ&#x20AC;&#x2122;re here to stay. A lot of hotshots, a truck and trailer, come and go.

â&#x20AC;?

- Clinton Gibbons, owner, Mission Hotshot Service Inc.

Éş Page B26 "We looked long enough, we knew that was right. I was shown it Wednesday, and we said yes Friday morning. I do my best thinking while driving, and I and my wife went to Minot on the Thursday.

Nicole was key in the hunt for a new home for the business, he noted. â&#x20AC;&#x153;I envisioned it. I didnâ&#x20AC;&#x2122;t think it would happen that fast,â&#x20AC;? Gibbons said when asked about whether, three years ago, he thought they would be where they are today. â&#x20AC;&#x153;Full time guys are averaging about 200 hours a month. Some months are more, some less.

This summer was slower for most service businesses in southeast Saskatchewan compared to the previous year, with the drilling rig count down about 40 rigs province-wide compared to the record setting pace of the summer of 2011. â&#x20AC;&#x153;October was approaching average. We had a slow August. Our customer base is getting bigger, so weâ&#x20AC;&#x2122;re seeing less ďŹ&#x201A;uctuations from boom to bust.â&#x20AC;? â&#x20AC;&#x153;The toughest job is hiring people,â&#x20AC;? Gibbons added.

The company is working on putting together a beneďŹ ts package for staďŹ&#x20AC;, a key recruiting tool. â&#x20AC;&#x153;You want to try to create a good work environment â&#x20AC;&#x201C; something healthy, something to stick around for,â&#x20AC;? he said.

As for their human resources strategy, Gibbons noted, â&#x20AC;&#x153;Attitude is the biggest one. I want someone with a good attitude. Skill set is second. I deďŹ nitely look for people who ďŹ t in with what Iâ&#x20AC;&#x2122;ve got. You can teach, but you canâ&#x20AC;&#x2122;t change attitude.â&#x20AC;? â&#x20AC;&#x153;I just hired a guy from Davidson. Heâ&#x20AC;&#x2122;s got a willingness to learn, and a get â&#x20AC;&#x2122;er done attitude.â&#x20AC;?

Some prospective employees said they would come to Estevan if housing was provided, but he doesnâ&#x20AC;&#x2122;t want to get into the accommodations ďŹ eld.

The reason for having nearly twice as many trailers as trucks is that trailers are often left on site for the client for anywhere from a day to a week. â&#x20AC;&#x153;We take trailers out and leave them on location for a day or two out there. We just picked one up that was on location for a week,â&#x20AC;? Gibbons said.

Six are now equipped with pintle hitches so customers can more easily move them around. â&#x20AC;&#x153;Theyâ&#x20AC;&#x2122;re not as smooth to pull, but theyâ&#x20AC;&#x2122;re way more convenient for the customer,â&#x20AC;? he said.

Gibbons concluded, â&#x20AC;&#x153;In buying a shop, youâ&#x20AC;&#x2122;re part of the community. Youâ&#x20AC;&#x2122;re here to stay. A lot of hotshots, a truck and trailer, come and go.â&#x20AC;?

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B28

PIPELINE NEWS January 2013

Wayne Clemens operates the controls of â&#x20AC;&#x153;Daisy.â&#x20AC;? X-Treme Towingâ&#x20AC;&#x2122;s heavy duty wrecker.

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Pickers a handy addition to towing outĂ&#x20AC;t Estevan â&#x20AC;&#x201C; With a ďŹ&#x201A;eet of ďŹ ve semis pulling tankers, Wayne Clemens couldnâ&#x20AC;&#x2122;t ďŹ gure out why Estevan didnâ&#x20AC;&#x2122;t have a heavy-duty tow truck. So he decided to get one.

Two years later, the tankers are gone, and towing and pickers are the focus.

X-Treme Towing oďŹ&#x20AC;ers the heavy-duty towing, and has the only semi wrecker outside of Weyburn, Regina or Brandon in the region. That keeps them going, and has led to an expansion into light-duty towing as well. â&#x20AC;&#x153;I was at Weatherford for 12 years. Before that, I was in construction,â&#x20AC;? Clemens said. â&#x20AC;&#x153;I farmed, ran winch trucks, did a bit of everything.â&#x20AC;?

At Weatherford, he was a service tech for, as he described, â&#x20AC;&#x153;anything in the ďŹ eld.â&#x20AC;?

The road to towing started with tankers. â&#x20AC;&#x153;I bought some tank trucks. I had ďŹ ve trucks doing down the road,â&#x20AC;? he said. â&#x20AC;&#x153;I knew a couple of guys that were hauling and decided to get into it.â&#x20AC;?

That start was in 2007, just when the Bakken boom started. He got out of tankers one-and-a-half years ago. â&#x20AC;&#x153;When you needed a tow truck, there was none around,â&#x20AC;? Clemens said. He bought his own, and now works with the local semi dealers when they need a tow.

The heavy-duty wrecker is alternatively known as the â&#x20AC;&#x153;Big Orange Unitâ&#x20AC;? or â&#x20AC;&#x153;Daisy.â&#x20AC;? Itâ&#x20AC;&#x2122;s a stretched Kenworth, single steer, tandem truck with a 35-ton wrecker. The truck came out of California. â&#x20AC;&#x153;Nobody could ďŹ gure out why there wasnâ&#x20AC;&#x2122;t one in town,â&#x20AC;? he said. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re it, in the southeast corner. The nearest one is Weyburn. Other than that itâ&#x20AC;&#x2122;s Regina or Brandon.â&#x20AC;? ɸ Page B29

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PIPELINE NEWS January 2013 Éş Page B28 â&#x20AC;&#x153;We havenâ&#x20AC;&#x2122;t advertised or pushed it too much,â&#x20AC;? he said.

Eventually they added a smaller duallie tow truck to handle light-duty towing. â&#x20AC;&#x153;The little truck is never shut oďŹ&#x20AC;,â&#x20AC;? he said. â&#x20AC;&#x153;The big one goes on an almost daily basis.â&#x20AC;?

They now take calls from CAA as well as some roadside assistance services.

Heâ&#x20AC;&#x2122;s considering getting another tow truck in between the two trucks. The Estevan area has a lot of heavier trucks around â&#x20AC;&#x201C; service bodies, knuckle-picker dualies, and the like. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re pulling trucks up to 19,000 pounds,â&#x20AC;? Clemens said. The big truck can be overkill, but it can be a bit much for the small one.

In the meantime, their in-between-sized loads are often handled with a gooseneck tip trailer with a big winch. Itâ&#x20AC;&#x2122;s pulled by a pickup.

As for the really big loads, like service rigs, they leave that to local trucking ďŹ rms.

This past fall Discovery Channel ran a series called Highway Thru Hell, proďŹ ling a heavy-duty towing outďŹ t based in Hope, B.C. which covers the Coquihalla highway. Itâ&#x20AC;&#x2122;s brought a lot of prominence to the towing business. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s a good show. Thereâ&#x20AC;&#x2122;s a few things we do diďŹ&#x20AC;erently,â&#x20AC;? Clemens said.

One of the standout pieces of equipment of Jamie Davis Heavy Rescue, the company featured in Highway Thru Hell, is its rotator heavy wrecker.

That allows its wrecker arm to rotate to the side, making the machine much more ďŹ&#x201A;exible for diďŹ&#x192;cult tows. But X-Treme Towing can trump that. â&#x20AC;&#x153;We have three pickers, a 30-tonn, 35-ton, and 28-ton knuckle boom,â&#x20AC;? Clemens said.

One is a tandem steer, tandem drive, another is a tandem steer, tridrive. â&#x20AC;&#x153;They are just like big rotators,â&#x20AC;? he said.

The knuckle picker, he said, will be used as much as possible in recoveries. In late November they used it to ďŹ sh a small car out of the Souris River near Estevanâ&#x20AC;&#x2122;s Woodlawn Golf and Country Club. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re kind of unique because of the pickers,â&#x20AC;? Clemens said. â&#x20AC;&#x153;I saw a lot of them going down the road, and thought, â&#x20AC;&#x2DC;Maybe we should have them, too.â&#x20AC;&#x2122;â&#x20AC;?

Those pickers arenâ&#x20AC;&#x2122;t sitting, waiting for a call, however. Pickers, and more importantly, picker operators, are in high demand in southeast Saskatchewan. There are three semis hauling pipe and matting, and the aforementioned three pickers. One semi often assists with towing, doing things like pulling the trailer of a stricken semi.

As such the pickers are actually part of a side company, X-Treme Picker Service. â&#x20AC;&#x153;They go steady. Theyâ&#x20AC;&#x2122;re never around the shop. We specialize in rig moving. Weâ&#x20AC;&#x2122;ve got a few dozen service rigs we take care of,â&#x20AC;? he said.

However, if they do need the pickers for a diďŹ&#x192;cult towing or recovery job, they are available. In their yard in late November, for instance, one was used along with â&#x20AC;&#x153;Daisyâ&#x20AC;? to lift a burnt-out farm grain truck, allowing a ďŹ&#x201A;atdeck semi trailer to be backed under it.

Thereâ&#x20AC;&#x2122;s also a loader and skid-steer loader in the ďŹ&#x201A;eet. The large loader is not only useful for moving pipe, but in ďŹ&#x201A;ipping semis or acting as an anchor. â&#x20AC;&#x153;A lot of times, you need an anchor to turn it,â&#x20AC;? he said.

B29

X-Treme Towing recently moved to a new shop adjacent from their previous location on the west side of Estevan. Behind the shop is an impound yard, a key aspect of the towing business. â&#x20AC;&#x153;We do impounds for the city police, SGI and RCMP,â&#x20AC;? he said.

The companyâ&#x20AC;&#x2122;s service area is southeast Saskatchewan, and just a little into Manitoba. â&#x20AC;&#x153;We haul into Regina and up to 17 km into Manitoba. We permit for some Manitoba loads. We do lots of CarnduďŹ&#x20AC; and Oxbow,â&#x20AC;? he said.

Asked whatâ&#x20AC;&#x2122;s the best advice for a driver should they ever need a two, Clemens said, â&#x20AC;&#x153;The main thing is to have something to hook onto, and not just for the oilďŹ eld. Weâ&#x20AC;&#x2122;re not going to pull oďŹ&#x20AC; someoneâ&#x20AC;&#x2122;s front end. â&#x20AC;&#x153;Be ready for the unexpected.â&#x20AC;?

As for tire chains, he noted, â&#x20AC;&#x153;A lot of times, chains just get you in that much deeper.â&#x20AC;?

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B30

PIPELINE NEWS January 2013 Rick Tourand shows a cut-away composite boot, leĹ&#x152;, and a boot meant for the coldest weather, right.

Composites in the cold Â&#x201E; By Brian Zinchuk Estevan â&#x20AC;&#x201C; These are not your fatherâ&#x20AC;&#x2122;s workboots.

When you went out on your ďŹ rst job, your father might have told you itâ&#x20AC;&#x2122;s important to remember your steel-toed boots. At least it used to be. These days, especially in winter, steel-toes are going the way of the Dodo bird.

The big shift in protective work footwear, especially for cold weather, is composites, according to Rick Tourand, owner of Ronâ&#x20AC;&#x2122;s the Work Wear Store.

The company has locations in Weyburn, Estevan and Carlyle.

Composites have become the trend in all sorts of industries. From new airliner designs like the Airbus A380 to your kidâ&#x20AC;&#x2122;s hockey stick, their physical 35(6685( 758&. 6(59,&(6 properties of light weight and strength have seen them supplanting traditional 6 H U Y L Q J 6 R X W K H D V W 6 D V N D W F K H Z D Q materials. In footwear, heat conductivity, or lack thereof, is a key point.

DQG 6RXWKZHVW 0DQLWRED â&#x20AC;&#x153;Composites are the current trend in CSA footwear. Theyâ&#x20AC;&#x2122;re lighter, stronger, and do not conduct cold,â&#x20AC;? said Tourand. â&#x20AC;&#x153;Steel conducts the cold.â&#x20AC;?

That makes a big diďŹ&#x20AC;erence to the pipeliner standing on a cold, windy right-of-way all day or a derrickhand up the mast.

About a dozen years ago, there was a brief ďŹ&#x201A;irtation in the industry with ďŹ breglass-toed boots, but they didnâ&#x20AC;&#x2122;t pan out and were quickly abandoned. The current composites are not ďŹ breglass. They are a material called epoxy resins, according to Tourand. â&#x20AC;&#x153;In a workboot, probably 70 per cent is still steel-toe and plate. In the winter boots, we probably sell 70 per cent composite toe and plate. Thatâ&#x20AC;&#x2122;s the way P P DQG P WUXFNV the industry is going. +285 3+21( 180%(5 â&#x20AC;&#x153;They ďŹ nd the toes donâ&#x20AC;&#x2122;t get as cold, especially the ones who stand most

of the day. Thermographic testing has been done on these. It proves it doesnâ&#x20AC;&#x2122;t conduct the cold.â&#x20AC;?

Thermographic testing is essentially imaging 35, 28 30 & 23 â&#x20AC;˘ 45,â&#x20AC;˘35, 23 Ton TonPickers Pickers showing heat, such as infrared imaging. â&#x20AC;˘ Bed Truck â&#x20AC;˘ Bed Truck Tourand noted composite boots are also quite â&#x20AC;˘ Pipe Custodian a bit lighter in comparison to steel-toed boots. He â&#x20AC;˘ Pipe Custodians said, â&#x20AC;&#x153;A few ounces diďŹ&#x20AC;erence, over two feet, over â&#x20AC;˘ Pipe Racks â&#x20AC;˘ Pipe Racks thousands of steps a day, adds up.â&#x20AC;? â&#x20AC;˘ Rig Matts â&#x20AC;˘ Rig Matts When customers come in, they will typically â&#x20AC;˘ Flarestack Sales & Rentals say, â&#x20AC;&#x153;I need winter boots.â&#x20AC;? â&#x20AC;˘ Flarestack Sales & Rentals â&#x20AC;˘ Tubing Trailers Tourand responds by asking, â&#x20AC;&#x153;What type of â&#x20AC;˘ 400â&#x20AC;˘ 400 BBLBBL Test Tank Sales Test Tank Sales&&Rental Rental work do you do? What exactly are you doing? Are â&#x20AC;˘ Wellhead Sales & Installation â&#x20AC;˘ Wellhead Sales & Installation you up the mast as a derrickhand? â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s a subjective thing,â&#x20AC;? he said. â&#x20AC;&#x153;You can see Oilfield Trucking & Rentals â&#x20AC;˘ Backhoe & Skid Steer â&#x20AC;˘ Backhoe & Skid Steer the same boot, same height, same weight, same â&#x20AC;˘ Steamer â&#x20AC;˘ Steamer John job, and one person will need a -100 C boot, and John â&#x20AC;˘ Crew Truck â&#x20AC;˘ Test Separators another will need -50 C. Jason â&#x20AC;˘ Test Separators There has been a large trend in recent years â&#x20AC;˘ Work Strings Fax 842-1707 â&#x20AC;˘ Work Strings toward polyurethane boots. â&#x20AC;&#x153;These are the hottest â&#x20AC;˘ Light Towers things in oilďŹ eld footwear,â&#x20AC;? Tourand said, holding â&#x20AC;˘ Light Towers gibsonwelding10@hotmail.com â&#x20AC;˘ COR CertiĂ&#x20AC; ed up samples of BaďŹ&#x192;n and Cofra boots. â&#x20AC;˘ COR Certified P.O. BOX 926, WEYBURN, SK S4H 2L2 Polyurethane boots, unlike older style rubber boots, are resistant to invert and distillates used in some drilling. The older boots would simply disintegrate over time. ɸ Page B31

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PIPELINE NEWS January 2013

B31

Rick Tourand, right, assists a customer in Įnding a hardhat liner.

ɺ Page B30 “Nothing would stand up. Polyurethane stands up,” Tourand said.

“The guys got onto them and started wearing them year-round, winter and summer. I sell fewer regular workboots because of these.”

In the wintertime, workers will often use a quilted sock known as a Bama sock. They not only provide additional warmth, but wick moisture away and keep the feet dry.

“They say it’s like air conditioning for your feet,” he said.

The lining inside of the boot has thousands of microscopic cells that provide insulation. “They trap the body head. That’s what keeps you warm in the winter,” Tourand explained.

“These are my No. 1 style of boot in all three stores. Three years ago, they weren’t a hot item. We sold over 40 pairs (in Estevan) in one week. It’s incredible.”

Often it’s a case of “You see one, you want one.” New workers see what their co-workers are wearing, and quickly adopt that style of footwear. Yet it will often be territorial. The crew of one rig might be wearing one style, and a crew of another rig working just down the road will be wearing a second style.

One of the coldest-rated boots Ron’s carries is the “derrick boot.” It’s rated to -100 C. “I’ve never had a guy complain about cold feet in those. If you get cold feet, it’s too cold to be working.”

Another new trend in footwear, and most work attire for that matter, is safety striping with highly reflective materials. “Five years ago, it was never an issue. Now everything is safety striped – coveralls, hoodies, high vis., footwear,” Tourand said.

When it comes to your more traditional style of workbook, the eight-inch lace-up boots, composite boots are becoming much more common as well.

With a Sympatex lining (an Dupont insulation product similar to 3M’s Goretex), composite toe and plate, Tourand noted, “This is as warm as any Sorel boot out there.”

The physical properties of composites also allow for a more box-shaped toe, as opposed to the traditional concaved steel. That box shape is more in keeping with the actual shape of the foot, Tourand noted.

“That doesn’t even feel like a hard toe,” he said.

Sole design has changed too. The old style, which would have an outer-sole stitched to a mid-sole, has been replaced by injection-moulded soles. By being one-piece, it prevents sole separation and reduces the chances of water penetration.

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PIPELINE NEWS January 2013

Fired up to heat frac water

This large heat exchanger enƟrely Įlls the back of this semi-trailer. Ryan Saxon, leŌ, and Ed Lukye are partners in Rapid HeaƟng Ltd.

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Estevan – Rapid Heating Ltd. fired up in the spring of 2012 with the intention of firing up their burners.

The Estevan-based company is owned by Ed Lukye and Ryan Saxon. They started operations last spring, and had their equipment on display at the Redvers Oil Showcase.

The company’s focus is frac water heating.

“Out there they have to warm water for warming the chemical,” said Lukye.

Water is typically heated to between 20 and 55 C. Their heat exchanger is eight feet across and 18 feet long. “This unit has 20 million BTU and a capacity of 4,500 litres per minute,” he said. It has two Riello burners.

“They suck up 110 gallons of diesel fuel per hour,” he said, which would explain the two large tanks at the front end of the trailer.

Additionally, they have a 15 horsepower high pressure boiler for steaming purposes. “We don’t have to wait for another steamer,” said Saxon, adding having both on the same unit is not common.

“We can troubleshoot instead of waiting for a high-pressure boiler.

The setup has two operators, but Lukye notes, “I’m there to help them. “ Saxon also helps out as needed.

He noted not only can they heat fresh water, but salt water as well, as the inside of their heat exchanger is stainless steel.

Their system can do two tanks at once, but they prefer to do one at a time.

The time it takes to heat a tank varies, but it averages around 30 to 35 minutes for a 400-bbl. tank, taking it from 3 C to 55 C. Uninsulated tanks in winter have to be heated to a higher temperature because they lose more heat overnight.

“If it’s too cold, they can’t frac with it,” Lukye said.

The heating is done before the actual frac crew sets up. They are not present when the frac job is underway.

As a new entrant to a marketplace that has seen a number of frac heaters pop up in recent years, Lukye noted, “It’s crowded when it’s not busy. But there’s people waiting when it’s busy.”

The company is licensed for Manitoba, Alberta, British Columbia and Saskatchewan.

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PIPELINE NEWS January 2013

B33

This area is the new cabinet-making area, as the old space used for that purpose will be the new home to drywall storage, as well as addiĆ&#x;onal Ĺ&#x2021;oor space for the building supply store. Harry Laurent is the owner of Arcola Building Supplies and Harry Laurent ConstrucĆ&#x;on, as well as the townâ&#x20AC;&#x2122;s mayor.

Accommodations are key in Arcola Arcola â&#x20AC;&#x201C; Thereâ&#x20AC;&#x2122;s one big issue for the town of Arcola when it comes to addressing the concerns of the oilpatch, and thatâ&#x20AC;&#x2122;s housing. â&#x20AC;&#x153;Our thing here is living accommodations,â&#x20AC;? said Harry Laurent, the recently acclaimed mayor of Arcola. Laurent returned to the position after a three year hiatus which he spent relocating his two businesses â&#x20AC;&#x201C; lumberyard Arcola Building Supplies and Harry Laurent Construction Inc., to the new industrial subdivision along the north side of Highway 13. The second company specializes in building shops for the oilpatch.

In the past three years, Arcola has developed and ďŹ lled two residential subdivisions. A third subdivision with 17 lots for sale has just opened up. The ďŹ rst two subdivisions absorbed 12 and 16 homes respectively. â&#x20AC;&#x153;SaskEnergy and SaskPower just completed installations. Weâ&#x20AC;&#x2122;ve had an oďŹ&#x20AC;er to purchase one lot already,â&#x20AC;? he said.

The prices will range from $45,000 to $50,000 apiece. Each lot is approximately 150-feet by 125-feet in size. â&#x20AC;&#x153;Theyâ&#x20AC;&#x2122;re nice sized lots."

The price has climbed over the years. Lots for the ďŹ rst subdivision had gone for $17,000 to $21,000.

Itâ&#x20AC;&#x2122;s a big change in rural Saskatchewan, when not too long ago, small towns were selling lots for a loonie, just to attract people to come to their town and increase the tax base. Laurent personally bought the lot his house is now on for $2 in 2008. To be fair, they put about $20,000 into improving the lot, but thatâ&#x20AC;&#x2122;s still a far cry from what a lot in Estevan goes for. â&#x20AC;&#x153;We have a developer speaking with the town about starting a multi-unit dwelling,â&#x20AC;? Laurent said. â&#x20AC;&#x153;Heâ&#x20AC;&#x2122;s kind of looking at rentals.â&#x20AC;?

Another company has broken ground on two fourplexes. Laurent expects they will be ready to go in the spring.

His old lumberyard location, on Main Street, had three lots. They have been purchased and are being considered for either a two or three storey apartment building. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s huge,â&#x20AC;? Laurent said of the developments underway. â&#x20AC;&#x153;Saskatchewan just went crazy. If we get these apartments here and the patch dried up, you still have the service industry,â&#x20AC;? he said, pointing out that new wells still need to be maintained, and ďŹ&#x201A;uids hauled from them. ɸ Page B34

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PIPELINE NEWS January 2013 Harry Laurent is the recently acclaimed mayor of Arcola. He returned to the posiĆ&#x;on after a three-year hiatus. His twin ventures, Arcola Buildings Supplies, and Harry Laurent ConstrucĆ&#x;on Ltd., have been busy in the meanĆ&#x;me.

Back in the saddle Éş Page B33 As for constructing the new housing, Laurentâ&#x20AC;&#x2122;s business built one in the earlier subdivisions, but after that he said, â&#x20AC;&#x153;I went to shops.â&#x20AC;?

Commercial shops are a lot simpler, and have considerably fewer headaches, he noted.

As for Arcola Building Supplies, Laurent said, â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s a very busy store.â&#x20AC;?

He took Pipeline News on a tour of the new facility, which in just three years, they have outgrown. An expansion is underway. The cabinet-making side is being shifted to an addition, and its former place will be used for drywall storage and additional store ďŹ&#x201A;oor space. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s a good time to own a lumberyard in this part of the province. Itâ&#x20AC;&#x2122;s a good time to be in business in any aspect.â&#x20AC;?

The growth of the oilpatch has been the driver, but he noted, â&#x20AC;&#x153;One of my favourite slogans is, â&#x20AC;&#x2DC;oil can make you money, but it can cost you money.â&#x20AC;&#x2122;â&#x20AC;?

By that he means local businesses have to try to match wage increases in the oilpatch, lest their employees jump ship. â&#x20AC;&#x153;Iâ&#x20AC;&#x2122;d hire three more in a heartbeat, but you canâ&#x20AC;&#x2122;t get â&#x20AC;&#x2122;em,â&#x20AC;? he said. â&#x20AC;&#x153;Kids out of high school can start at $26 an hour, and I start at $14.â&#x20AC;?

Pad drilling A series of new wells has sprouted up just a few miles east of Stoughton.

Photo by Brian Zinchuk

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B35

Tire changes snowball at Kal Tire Lloydminster â&#x20AC;&#x201C; A growing concern for safe winter driving in the oil and gas industry combined with an early snowfall whipped up a powerful storm of work orders for winter tires this season at Kal Tire in Lloydminster.

January and February are vacation months, but it was all hands on deck during a crazy pre-season rush in October that began to slow down the week of Nov. 19 when manager Adam Mountney caught a break.

Mountney said he and assistant manager Colby Moan were both chipping in with sales and service work during the crunch period and was glad to have a minute to talk about their ordeal by ďŹ re. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;ve had about six straight weeks of winter rush â&#x20AC;&#x201C; lots of tire putting on,â&#x20AC;? said Mountney who has been managing Kal Tire stores for 10 years including the past three years at the busy Lloydminster shop. â&#x20AC;&#x153;In October and November, we pretty much do two months in one. Itâ&#x20AC;&#x2122;s pretty much the meat and potatoes of our year. â&#x20AC;&#x153;In the morning, weâ&#x20AC;&#x2122;ve had 10 to 15 people waiting outside an hour before we open at 7:30 a.m. to get in ďŹ rst because we are ďŹ rst come, ďŹ rst served.â&#x20AC;?

In the busiest four week period, the Lloydminster shop sold more than 1,300 tires mostly to oilďŹ eld company ďŹ&#x201A;eets from pickups to heavy oil haulers.

They also installed about 400 customer car and trucks tires in early winter driving conditions. â&#x20AC;&#x153;Safety is the driving force behind oil company ďŹ&#x201A;eets switching to snow,â&#x20AC;? said Mountney. â&#x20AC;&#x153;I know up in Fort McMurray and area, you canâ&#x20AC;&#x2122;t even go up there unless you have winter tires on now on a lot of lease sites. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s better for traction and safety. The biggest concern is safety for their people on the road.â&#x20AC;?

Kal Tire is Canadaâ&#x20AC;&#x2122;s largest independent tire dealer serving retail, commercial and mining customers with up to 19 brands for car and light truck tires.

In Lloydminster, the Bridgestone Blizzak is Kal Tireâ&#x20AC;&#x2122;s best selling tire for cars and light trucks. â&#x20AC;&#x153;It seems thatâ&#x20AC;&#x2122;s a real well known name. Everybody feels thatâ&#x20AC;&#x2122;s the best one. Itâ&#x20AC;&#x2122;s got a real soft block and lots of snipes in the tread,â&#x20AC;? said Mountney. â&#x20AC;&#x153;Every year within two weeks of winter they will be sold out. I had guys order them in April to make sure they got them when the snow ďŹ&#x201A;ies.â&#x20AC;?

Some pickup ďŹ&#x201A;eets and consumers are also asking for studded tires from Nokian for performance and safety in the icy road conditions prevalent in the Lloydminster area. â&#x20AC;&#x153;We ďŹ nd itâ&#x20AC;&#x2122;s more icy than snowy in Lloydminster. Especially when they go for the studs, thatâ&#x20AC;&#x2122;s what they are looking for â&#x20AC;&#x201C; the starting and stopping versus the lateral stability,â&#x20AC;? said Mountney. â&#x20AC;&#x153;More people are going to studs. The only complaint is theyâ&#x20AC;&#x2122;re noisy, but the traction once they try them, itâ&#x20AC;&#x2122;s hard not to run them ever again. Usually, when they run them, they want them all the time.â&#x20AC;?

The Bridgestone M775 steel radial is the best selling new tire for heavy crude haulers.

It has an extra deep tread for long original tread life and special compounds to resist cuts, chips, tearing and irregular wear.

The Lloydminster shop has seven full time and three part time employees who turn into super heroes without capes when the going gets tough â&#x20AC;&#x201C; as it did with the second snowfall of the season. â&#x20AC;&#x153;At one point, I had four lines on the go. We were all in the back. I left one person in the oďŹ&#x192;ce and I actually put three lines on hold with one incoming just so we could keep up,â&#x20AC;? said Mountney. ɸ Page B36

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B36

PIPELINE NEWS January 2013

Retreading tires a busy business Éş Page B35 â&#x20AC;&#x153;Some mornings right oďŹ&#x20AC; the hop, we will

have 80 tires to put on and then we are explaining to guys 20 minutes

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31/2 miles South of Estevan on Hwy 47 (35 of 1 of 8, West of the 2nd)

after opening that itâ&#x20AC;&#x2122;s a day wait â&#x20AC;&#x201C; drop it oďŹ&#x20AC; and weâ&#x20AC;&#x2122;ll tell you when itâ&#x20AC;&#x2122;s ready. â&#x20AC;&#x153;It pays to be ďŹ rst in line especially when the snow ďŹ&#x201A;ies. Everybody waits until that snow hits the ground before that light goes on saying â&#x20AC;&#x2DC;hey I need them on.â&#x20AC;&#x2122;â&#x20AC;?

Surprisingly, retread tires for oilďŹ eld semis and trailers outsell new tires almost 4 to 1 with Kal-Tireâ&#x20AC;&#x2122;s ďŹ&#x201A;eet customers such as Wes Can, Husky, Trican and Halliburton. â&#x20AC;&#x153;DeďŹ nitely itâ&#x20AC;&#x2122;s about

* Formerly â&#x20AC;&#x153;Three Star Environmentalâ&#x20AC;?

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cost savings,â&#x20AC;? said Riley Cowan, outside sales manager who noted a large retread truck tire could cost $300 compared to $600 for a new one. â&#x20AC;&#x153;You get about 80 per cent of the life of what youâ&#x20AC;&#x2122;d get on a new tire. The cost per kilometre is what we typically sell by, so there is anywhere from a 30 to 50 per cent cost savings. â&#x20AC;&#x153;For a larger ďŹ&#x201A;eet, you multiply that by the number of wheel positions.â&#x20AC;?

Each week, Kal Tire ďŹ lls up a trailer with up to 132 used oilďŹ eld tires to be sent to the Bandag retread facility in Regina. â&#x20AC;&#x153;You can retread a casing more than once.

With the initial purchase of $600 for a new tire, you can get up to nine retreads on one casing,â&#x20AC;? said Cowan. â&#x20AC;&#x153;Not only does it save the company money, it saves the environment because itâ&#x20AC;&#x2122;s recycling.â&#x20AC;?

The Bandag BDY2

is the best selling single or tandem oilďŹ eld retread designed for enhanced traction on unimproved road surfaces.

Kal Tire can install and service winter tires on up to four semis at a time in a covered outdoor pad at the back of their shop.

A typical semi will need eight winter drive tires with a life expectancy of between 80,000 to 100,000 kilometres in the Lloydminster area. â&#x20AC;&#x153;Lease roads chew them up and they are busy, so they wonâ&#x20AC;&#x2122;t always come in and get them rotated in time, which kind of cups them and creates wear,â&#x20AC;? said Mountney.

Kal Tire however, dispatches one of its service trucks daily to check the yards of its ďŹ&#x201A;eet customers as part of a preventative maintenance program. â&#x20AC;&#x153;Before those trailers head out on the road, weâ&#x20AC;&#x2122;ve got a guy who goes out and hammers on every tire looking for ďŹ&#x201A;ats or worn out tires,â&#x20AC;? said Cowan. â&#x20AC;&#x153;We try and take care of it and eliminate the downtime. While those trailers are down, we are servicing them. â&#x20AC;&#x153;It keeps the customer happy and keeps them coming back to

Kal.â&#x20AC;?

Cowan makes regular sales and service trips to Husky which has grown to become KalTireâ&#x20AC;&#x2122;s largest account after starting with 14 trailers in 2007. â&#x20AC;&#x153;Theyâ&#x20AC;&#x2122;ve grown immensely and, of course, the business weâ&#x20AC;&#x2122;ve done with them has grown immensely,â&#x20AC;? said Cowan. â&#x20AC;&#x153;Retreads play a signiďŹ cant role in how they were able to expand so quickly.â&#x20AC;? â&#x20AC;&#x153;What we try and do is prove to the customer that what we can provide for them is above and beyond what the competition can provide. â&#x20AC;&#x153;Obviously, we want to lower their operating cost or it wouldnâ&#x20AC;&#x2122;t make sense for them to switch from their current supplier to what we do. â&#x20AC;&#x153;We accomplish that by purchase reports, retread reports â&#x20AC;&#x201C; give as much information as we can give to that customer so that it makes their buying decisions that much easier because theyâ&#x20AC;&#x2122;ve got all the information. â&#x20AC;&#x153;Our company is set up quite well to provide that extra value to them.â&#x20AC;?

Kal Tire also has a journeyman on staďŹ&#x20AC; for front end brake and suspension work on smaller cars and trucks.

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PIPELINE NEWS January 2013

B37

Condos for the driver and their truck Arcola â&#x20AC;&#x201C; If thereâ&#x20AC;&#x2122;s one thing you can never seem to ďŹ nd enough of, itâ&#x20AC;&#x2122;s shop space for ďŹ&#x201A;uid haulers in the winter. That, and housing, are always in short supply and high demand.

Those are two birds Harry Laurent is trying to kill with the same stone. This winter heâ&#x20AC;&#x2122;s planning on building 10 units in a â&#x20AC;&#x153;trucker condoâ&#x20AC;? conďŹ guration.

The idea is to build shop space for individual trucks, and make the back of the shop into a two-storey apartment.

Each unit will be 100 feet long.

The ďŹ rst 85 feet will be truck shop, and the rear 15 feet will have a twostorey apartment with roughly 1,000 square feet of living space.

Each shop and apartment unit will be separated by a smoke wall. â&#x20AC;&#x153;We hope to make it into a condo. Weâ&#x20AC;&#x2122;re going to start on them soon,â&#x20AC;? Laurent said on Dec. 4.

As for the location, he has ďŹ ve acres behind his lumberyard, Arcola Building Supplies. His other venture is Harry Laurent Construction Ltd., which specializes in shop construction. That location also is puts it in

easy access to Highway 13, right on the Bakken fairway. â&#x20AC;&#x153;I would hope we would have them done by spring,â&#x20AC;? he said. â&#x20AC;&#x153;If I had them now, theyâ&#x20AC;&#x2122;d be going like hotcakes,â&#x20AC;? Laurent said in reference to the condos. â&#x20AC;&#x153;Theyâ&#x20AC;&#x2122;re basically designed for one person. A lot of people have their own truck, and no place to stay.â&#x20AC;?

Laurent has done a lot of consultation in the industry, particularly with ďŹ&#x201A;uid haulers, and they tell him heâ&#x20AC;&#x2122;s on the right track. â&#x20AC;&#x153;Every time he puts a truck in a bay, he had a place for the man to live.â&#x20AC;?

The units could be sold individually, or in blocks to larger ďŹ rms.

Units will have appliances included, and may have a deck built on the back.

Friends in Alberta sharing ideas helped inspire the concept. â&#x20AC;&#x153;Iâ&#x20AC;&#x2122;ve researched this for about a year. In my mind, it should ďŹ&#x201A;y. Itâ&#x20AC;&#x2122;s a fairly expensive gamble, but I think it will ďŹ&#x201A;y. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s going to be their home.

Weâ&#x20AC;&#x2122;re going to have to make it nice.

Winter Drilling CanElson Drilling Rig 16 could be found drilling between Kisbey and Forget in early December.

Photo by Brian Zinchuk

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Cordell Janssen District Manager Downhole

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

LECLAIR TRANSPORT General OilďŹ eld Hauling

Lyle Leclair Cell: 306-421-7060

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

Lloyd Lavigne â&#x20AC;˘ Kirk Clarkson Owners/Managers 6506 - 50th Avenue Lloydminster, AB

Phone: (780) 875-6880

5315 - 37th Street Provost, AB T0B 3S0

Phone: (780) 753-6449

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B38

PIPELINE NEWS January 2013

CAREER GuĂ&#x2014;de

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101 Supreme St. (Shand access road)

SERVICE RIG PERSONNEL Class 1A & 3A Preferred Above Industry Wages Benefits Packages Opportunity for Advancement Email: sleibel@suncountrywellservicing.ca Fax 306 634 1200 â&#x20AC;˘ Cell 306 421 3418

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â&#x20AC;˘ CONSTRUCTION MANAGER

Weâ&#x20AC;&#x2122;re hiring for various projects throughout Southern Saskatchewan

â&#x20AC;˘ 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 16â&#x20AC;?).

This positionâ&#x20AC;&#x2122;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

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-Employee & Owner Operators with Pipeline Construction Experience

All positions require previous experience in Pipeline Construction.

Previous experience on Pipeline Integrity projects is an asset.

Slickline Division Compensation: Competitive wages Overtime Daily Subsistence /Living allowance

Preferred Certifications H2S Alive Standard First Aid & CPR

Required Certifications Driverâ&#x20AC;&#x2122;s License Ground Disturbance â&#x20AC;&#x201C; (Heavy Equipment Operators only)

Please submit your resume to : For more details and other career opportunities please visit: email: hr@abpipeliners.com â&#x20AC;˘ Fax:403.265.0922 www.abpipeliners.com For Inquiries please call: 780.384.4050

We are seeking dynamic and motivated Field Assistants for our Estevan location.

Do you possess? â&#x20AC;˘ A valid driverâ&#x20AC;&#x2122;s license (minimum Class 5) â&#x20AC;˘ Previous Slickline and E-Line experience is an asset but not required. We are willing train the right candidate! ** Guaranteed Salary, Job Bonuses and Full BeneďŹ ts!** *Successful applicants must be willing to submit to and pass pre-employment testing* Please apply online at: www.pure-energy.ca We thank all applicants for their interest; however, only those considered for an interview will be contacted.

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PIPELINE NEWS January 2013

EMPLOYMENT OPPORTUNITY McNeil Plumbing and Gas Fitting based in Redvers, SK is looking for:

Experienced Plumbers/ Apprentice Plumbers/HVAC Technicians

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$SSOLFDQW 5HTXLUHPHQWV

• Wages up to $40/hour • Overtime after 8 hours • Use of company cell phone and company truck • Full bene¿ts after three months • Living accommodations available

To apply call 306 452-5199 or email jason_gas¿tter@live.ca

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PIPELINE NEWS January 2013

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