Pipeline News February 2013

PIPELINE NEWS Saskatchewan’s Petroleum Monthly FREE

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Volume 5 Issue 9

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February 2013

Canada Post Publication No. 40069240

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A3 Cenovus To Buy SaskPower's CO2

B1 CanElson Estevan Jr. A Bruins Naming Rights

C1 Former NHLer Now Keeps Oilpatch On Its Wheels

The Souris Valley FighƟng Sioux take a breather between periods. Most of the over-30 Estevan rec league team works in the oilpatch.

southeastcollege.org

Photo by Brian Zinchuk

1.866.999.7372

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PIPELINE NEWS February 2013

INSIDE SECTION A

4

DiīerenƟals hurt provincial Įnances

5

Alberta Carbon Truck Line

6

Editorial

14 Boundary Dam project on Ɵme coming together

7

Opinion

16 30 years for Travelodge Hotel Weyburn

10 Carbon capture facility coming together

23 Grader takes out train hauling crude

SECTION B 1

How they became the CanElson Estevan Bruins

24 ShiŌing Gears: Someone's watching

4

Cenovus gives Weyburn Triple C Centre $250,000

25 Three rinks named aŌer Crescent Point

6

Erin Weir says royalty loopholes should be closed

SECTION C 1

Fountain Tire scores with oilpatch hockey

7

3

Prince Rupert LNG worth billions

18 Coaches corner on the rink

Lloyd shoots for Hockey Day 2014

PIPELINE NEWS Saskatchewan’s Petroleum Monthly

March 2013 Focus

WELDING

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

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randi@pipelinenews.ca

spowell@prairiepost.com

al@prairieng.com

PIPELINE NEWS February 2013

A3

TOP NEWS

Cenovus to buy Boundary Dam’s CO2

By Brian Zinchuk Pipeline News Regina, Calgary – There were several companies interested in buying SaskPower’s upcoming supply of compressed carbon dioxide, but in the end the one that landed the deal is the one with the most experience with it in southeast Saskatchewan.

Cenovus Energy and SaskPower announced a deal on Dec. 19 that will see the operator of the Weyburn field purchase the CO2 expected to be produced by the Boundary Dam Power Station carbon capture project beginning in April 2014. The contract is for 10 years, and could be extended.

“This agreement is a major step toward increasing commercialization of carbon capture and storage,” said SaskPower president and CEO Robert Watson in a release. “This is confirmation that SaskPower is on the right track, and that carbon capture and storage is a viable option for the continued use of coal for power generation.”

“Ensuring we have a consistent and adequate supply of CO2 is critical to maintaining and expanding our enhanced oil recovery project near Weyburn,” said John Brannan, Cenovus executive vice-president and chief operating officer, in a release. “Cenovus’s agreement with SaskPower provides us with a second reliable supply source of CO2 for our Saskatchewan operations. We look forward to working together.”

Mike Monea, SaskPower’s president for carbon capture and storage initiatives, spoke by phone with Pipeline News on Jan. 11.

“A lot of work as gone on to get the contract in place,” he said.

“We had five or six companies that were interested in CO2, but a lot of different sizes. Some would have had to combine with others.

It appears one of those interested was CNRL. Last May, Daily Oil Bulletin quoted CNRL president Steve Laut after their annual meeting saying, “We're in the engineering stage for Steelman. And we're just getting our contracts lined up to get the CO2 source.

"And once we get that all lined up, then we'll initiate the project and we'll do a pilot."

The story indicated “CO2 would come from the planned expansion of a SaskPower coal-fired electricity generating station.”

Asked about that, Monea said, “We phoned them up and asked what that was about. We didn’t know much about it.”

“I don’t know how that came about, but they later let us know they made a statement that wasn’t accurate.”

Other than the successful bidder, Cenovus, Monea wouldn’t discuss who else was involved.

Monea did indicate that the major players in the area were interested.

Since the project was announced in April 2011, SaskPower and government officials have on numerous occasions told Pipeline News that a purchaser for the CO2 would be announced shortly, but it took one and two-thirds of a year for that to happen. Asked why it took so long, Monea said, “It’s tricky. These things can turn quickly in a different direction.”

One of the key issues for carbon capture projects is the price paid for CO2. In general, oil companies often feel CO2 is a waste product, and as such, they shouldn’t have to pay much for it, while those who capture it want to ensure they make as much as possible from it.

“It’s like selling a car,” Monea said. “It’s worth what people will pay, and you don’t know what that is until it’s sold.”

Neither Monea nor Cenovus spokesperson Jes-

The last red smokestack on the right will soon become redundant, as the exhaust from Unit 3 will be channelled to the carbon capture facility on the leŌ side of this photo.

sica Wilkinson would release what the price is, but Monea noted, “It is a price we can live with.”

It does not cover the cost of capturing the CO2. But it creates an incentive for oil companies to come forward for longer term commitments, he

“It’s like selling a car.

It’s worth what people will pay, and you don’t know what that is until it’s sold.”

- Mike Monea, SaskPower’s president for carbon capture and storage initiatives noted.

“It helps us build our business case. It’s the lowest price we knew we could live with.”

That price is set for 10 years. “The price is established. It’s a very simple formula per metric tonne.”

There’s an option to extend the contract, Monea noted.

Cenovus currently has a single source for the CO2 used in its Weyburn field – the Dakota Gasification Company, in Beulah, North Dakota. The gas is shipped by the Souris Valley pipeline to their Goodwater plant, and is distributed throughout the field for injection.

For Cenovus, a key point was diversification of its sources of carbon dioxide.

Monea pointed out that there are new regulations in Canada for mitigating carbon footprints, particularly for coal-fired power plants. “This may happen in the U.S.” he said.

So when you produce and capture CO2 in the U.S., but ship it to Canada and geologically store it there, who gets to claim any carbon credits?

That could be problematic, since there are no reciprocating rights for carbon credits right now between the two nations. “That’s a long way from being established,” Monea said.

Wilkinson stressed the importance to Cenovus of having a second source of carbon dioxide, taking away the risk of having a single supplier.

“We do have an existing contract with Dakota Gasification,” she said.

The agreements with SaskPower and Dakota Gasification are complimentary, she noted, and have some flexibility.

Cenovus currently injects 4.2 million tonnes of CO2 per year into the Weyburn field. Much of that is recycled CO2 that is captured from produced oil.

The rest, 1.8 million tonnes, is new CO2.

Currently that all comes from Dakota Gasification. Wilkinson said, “We’ve contracted for approximately one million tonnes per year (from SaskPower). That’s roughly 3,000 tonnes per day of CO2.”

If the amount being injected remains constant, SaskPower’s CO2 provision will soon account for more than half of the new CO2 going into the Weyburn field.

Cenovus will be building and operating its own pipeline from the power plant, a distance of roughly 70 kilometres. “We’ve started the consultation program with landowners,” Wilkinson said.

“We’re looking forward to operating and producing the Weyburn field for years to come,” she said.

“We’re looking forward to working with SaskPower. Dakota Gasification Company is still an important partner; The driver for us was stability of supply.”

“For a lot of conventional, aging oilfields, CO2 is the next thing. We’ve seen it at Weyburn and Midale. These are long term projects.”

Wilkinson noted an open house regarding the project was being planned for mid-February, but as of early January, that had not yet been established.

During the commissioning process which is slated to begin this fall, the CO2 captured will go to the Aquistore injection well just a few kilometres west of the power station.

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PIPELINE NEWS February 2013

BRIEFS Marquee drilled 10 heavy oil wells in 2012

At Lloydminster, Marquee Energy Ltd. successfully drilled 10 vertical heavy oil wells in 2012, five of which were drilled and put on production in the fourth quarter. These wells were drilled, completed, equipped with production facilities, and put on production within three weeks of rig release for less than $600,000 per well.

Forent sells Mervin heavy oil property Forent Energy Ltd. has signed an agreement to sell its Mervin heavy oil property to a major heavy oil operator for $5.5 million, subject to closing adjustments.

The company intends to use the proceeds to fund working capital and future corporate growth at its Montgomery exploration property in southern Alberta and the 514,000-acre Alton block in Nova Scotia in which it has invested more than $11 million.

The Mervin disposition had an effective date of Dec. 31, 2012 and was expected to close at the end of January. The property represents substantially all of Forent's producing crude oil reserves.

The company currently has an estimated working capital deficit of $1 million and no bank debt.

Pipeline and Brent/WTI differentials costing province up to $300 million

By Brian Zinchuk Regina – West Texas Intermediate might have been in the $95 range in mid-January and Brent may have been going for $112, but that doesn’t mean Saskatchewan producers, and in turn the Saskatchewan government, have been realizing those prices. As of Jan. 18, the price for Hardistybased Western Canadian Select heavy crude was $58.99, $36.50 less than the WTI price.

These lower realized returns are having an impact on the provincial government’s finances in terms of potential royalty revenue lost.

“No question, when we look at the differentials on a tax basis, it’s a big number, as high as $300 million, if we were able to tax at the full rate of

world prices,” Minister responsible for Energy and Resources Tim McMillan told Pipeline News on Jan. 17. For 2012, his ministry estimates between $100 and $300 million has been lost, primarily in royalty revenue, to the province.

“That’s the easy calculation. When we look at what it’s costing industry – the lost revenue – that drives their investment decisions too. It’s a lot more

difficult to figure out, if we didn’t have the capacity challenges and differentials were a lot tighter, how much more investment would we be seeing in our province? That’s what needs to be considered as well, and why it’s so impor-

tant to us.”

Put in perspective, McMillan said the province’s revenue sharing with municipalities is approximately equivalent to the amount taken in from one percentage point of the provincial sales tax. In the 2012 budget, that one per cent was $237 million. ɸ Page A8

Minister responsible for Energy and Resources Tim McMillan.

File photo

Briefs courtesy Nickle’s Daily Oil Bulletin

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PIPELINE NEWS February 2013

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Carbon pipeline progress BRIEFS Compass energizes Enhance Geomatics

By Geoff Lee Pipeline News

“Equipment is being delivered. We have gone through detailed engineering and procurement.”

The North West refinery will process 50,000 barrels per Calgary – Susan Cole, president of Enhance Energy Inc., day of bitumen into low sulphur diesel fuel in the first of three is anxious to turn over some dirt to begin laying her company’s phases. It will have a full capacity of 150,000 bpd.

With the ACTL installation, the facility will capture 1.2 240-kilometre Alberta Carbon Trunk Line (ACTL) that will be million tonnes of CO2 per phase the largest carbon capture and storwhich will be used by Enhance age (CCS) project in the world. for EOR projects.

The 16-inch diameter ACTL “On the pipeline, the dewill initially collect carbon dioxtailed engineering is done, but ide (CO2) from Agrium Inc. and we haven’t prepared the pipe the North West Sturgeon Refinery yet because that construction near Redwater and transport it to window is actually 2014,” said aging light oil reservoirs in Central Cole.

Alberta for storage.

“We will be doing more on The CO2 will be injected into the procurement of the pipeline the Leduc and Nisku formations, later this year.” with the potential to produce over 1 ACTL will have a design cabillion barrels of oil from enhanced pacity of 40,000 tonnes of CO2 oil recovery (EOR) projects. per day, with initial throughput “We are building the pipeline ranging from 4,600 to 5,100 so it’s capable of moving just untonnes per day. der 15 million tonnes of CO2 a Enhance plans to compress year which would make it the largthe CO2 to 2,600 psi from Agriest CCS project in the world,” said um and North West and pipe it Cole. in a dense phase.

“We have the potential to store They plan to build an EOR two billion tonnes of CO2 so the and CCS system at the end of pipeline is an enabler for that.” the line near Clive with their Cole will have to wait unjoint venture partner Santonia til 2014 for pipeline earthwork to Susan Cole, president of Enhance Energy is excited about commence, but progress is being progress being made on the $1.2 billion ACTL project. Cole Energy Inc., operators of the made on all stages of the projects says the project will establish the needed infrastructure to Clive field.

“At the end of the EOR including a start on the construc- grow the business of managing CO produced by Alberta’s 2 tion of the North West Sturgeon upgrading, reĮning, power generaƟon and petrochemical project, we will be looking at injection into that field in midRefinery. operaƟons. Photo submiƩed 2015. We are in detailed engiHailed by Cole as a project neering right now,” said Cole. milestone, the refinery was sancEnhance is a privately-owned Calgary-based company spetioned for construction in November by its partners North West cializing in polymer flooding and in EOR involving the permaUgrading Inc. and Canadian Natural Resources Ltd. “As we continue to progress towards construction of the nent, secure storage of CO2 in mature oil and gas reservoirs.

Cole said Enhance hopes to use most of the CO2 for its ACTL, having a more definitive timeline from one of our iniown EOR projects but is open to discussion with other operatial CO2 suppliers is a key development,” she said in a company tors that want to do CO2 floods. newsletter.

“We do have our own fields and we want to maximize the The refinery will be the first in the world to incorporate value from the fields that we already own,” she said. gasification, CO2 capture, transportation, storage and EOR into “We see the pipeline enabling others to also do CO2 projthe initial design along with a CO2 compressor being built by ects.”

Enhance.

Cole said a CO2 project requires a lot of redrilling since the “There are some things happening at various stages throughout the project,” said Cole, including the manufacturing of com- existing wells in these old fields are too old.

“We do have to drill quite a few wells. There are in exactly ponents for CO2 recovery facilities at Agrium and North West. the same place as they are right now so it’s not like we are ex“There are three parts to our project. One is the capture of panding any activity area wise. We are just replacing wells that the CO2 at Agrium and Northwest. In that area, we are already have aged,” she explained. ɸ Page A9 receiving equipment.

announces expansion Compass

Geomatics

Ltd. announced the expansion of its professional land surveying and mapping services into Saskatchewan. Blake Wahl, SLS, MLS, has been hired as the branch manager for the new Compass office located in Regina.

“We are very excited to have Blake join our team and to start operations in Saskatchewan. As a dedicated individual who has a strong repertoire of surveying and project management experience, Blake is a valuable addition to our team and we look forward to his contribution,” said Wayne Savoury, general manager.

Alternatives Lloydminsterbased Western Plains Petroleum Ltd. reports that the process of marketing efforts is underway in respect of all possible strategic alternatives in order to maximize shareholder value.

These include a sale of the company, a recapitalization of the company, a merger with another entity, a sale of some or all of the assets of the company, or any combination.

Sayer Energy Advisors is acting as the exclusive financial advisor and agent of the company in connection with the strategic alternative process.

The deadline for submitting proposals to Sayer in respect of a transaction with Western Plains is noon on Feb. 7, 2013.

Briefs courtesy Nickle’s Daily Oil Bulletin

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PIPELINE NEWS February 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.

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Hockey night in the patch Did you know there are three arenas in Saskatchewan and Alberta named after Crescent Point? Or that a pumpjack was donated as an auction item in the fundraising for Estevan’s Spectra Place?

How about how the then-Eagle Drilling Services, now part of CanElson Drilling, helped bail out the Estevan Bruins by taking on a name sponsorship?

These are just a few of the ways the oilpatch has supported Canada’s national sport (in addition to lacrosse).

Go to any rink in the oilpatch and you’ll find a few things in common. The boards are plastered with oilpatch company sponsorships. Many of the teams, like the girls midget AAA Southern Range Gold Wings in Weyburn, have oilfield sponsors. Individual jersey sponsors are likewise festooned across players backs.

You’ll find engineers like Kent Smith of BAR Engineering in Lloydminster volunteers as a board member and director of the atom division of the Lloydminster Minor Hockey Association and takes on similar roles with the Lloydminster Border Blades Speed Skating Club along with coaching.

Most companies support their workers being involved with their kids’ teams. If they have to take a little time off here and there, that time is usually made up for elsewhere. One bit salesman noted he goes into work earlier if he has to. For the companies, it shows they are involved in the community, not just heartless, faceless corporations critics make them out

to be.

On the benches you’ll see numerous coaches with their cellphones at the ready, just in case they get called in. As a result, you’ll find teams that have several parents stepping up to coach, since at any time, someone might get called into the field, and often do.

And before them, leaning over the boards, are their kids. Weyburn’s initiation division has nearly doubled in size in the past few years, a direct result of all the young families that have moved to the community, mostly in support of the oilpatch.

When those dads tuck their kids into bed at night, they’ll often be found at the rink for a late night beerleague game themselves.

Some are more than beer-league players. All but three of the Bienfait Coalers in the Big Six Hockey League work in the patch. The rest work for SaskPower.

Their team captain, Matt Garagan, noted that players will often check their phones between shifts and periods, just in case they get called out to work. Sometimes they have a full bench, sometimes not so much. Garagan, himself, is a project manager with T. Bird Oil. With many of these families, hockey is a way of life.

With two kids on teams, and dad coaching and in a rec league, plus jobs that require long hours, they literally live at the rinks. It’s no wonder, then, that companies like Crescent Point have stepped forward to support these arenas.

That’s because, for many of their workers, nearly every night of the week is hockey night in the patch.

PIPELINE NEWS February 2013

A7

OPINION

From the Top of The Pile

By Brian Zinchuk

A missed opportunity for CO2 EOR Estevan – It was heady news announced just before Christmas: SaskPower did indeed have a purchaser for the CO2 expected to be produced from the Boundary Dam 3 carbon capture project.

I have been asking everyone with any association with the project for almost two years: Who is buying the CO2? That list has included former minister of Energy and Resources and now Minster of the Economy Bill Boyd, SaskPower CEO Robert Watson, Petroleum Technology Research Centre CEO Dr. Malcolm Wilson, and even Premier Brad Wall. To a one, all have said the announcement was coming, but when was never revealed.

A June 24 Daily Oil Bulletin story suggested a third CO2 enhanced oil recovery project for Saskatchewan could be possible, in addition to the those operated by Cenovus and Apache.

The article quoted Boyd as saying, “We're in discussions with a number of oil companies about that very thing. In fact, I had a breakfast meeting this morning with one of them.” He was speaking on June 21 on the sidelines of the Canadian Business Conferences' tight oil conference in Calgary.

“They are very, very interested in enhanced oil recovery benefits of CO2 and the storage of it. It looks very, very positive. I think they're into advanced discussions with SaskPower,” the minister said of the oil producers, which he didn't name.

“We think that will conclude probably later this year perhaps. And (for a project to come) onstream, I think they're looking at about late 2013, early 2014 for a very, very significant project,” Boyd said.

It looked like CNRL was a leading candidate to for a third project, at Steelman. On May 7, the DOB report-

ed, “Canadian Natural Resources Limited is continuing to work towards a carbon dioxide-based enhanced oil recovery (EOR) project at Steelman, a mature light oil asset in southeast Saskatchewan.”

“We're in the engineering stage for Steelman. And we're just getting our contracts lined up to get the CO2 source,” CNRL president Steve Laut said after the company's annual meeting last week (early May). “And once we get that all lined up, then we'll initiate the project and we'll do a pilot.”

“The CO2 would come from the planned expansion of a SaskPower coal-fired electricity generating station.

The Saskatchewan government-owned utility plans to replace an aging unit at its Boundary Dam power station near Estevan.

“It's actually a great project. They're reducing CO2 emissions from the coal plant and we're using it to increase recovery,” Laut said of the planned power plant expansion and EOR project.

This seemed logical. When SaskPower finally announced the go-ahead for the Boundary Dam project in April 2011, I immediately got on the horn to some very learned geologists and asked them where it would make sense to use this CO2 within the vicinity of Estevan.

Their response: the Steelman field. It was close, and had very similar reservoir properties to the Weyburn-Midale field where CO2 was already being used for EOR. Not much would be needed for a pilot project, since that has essentially been happening for over 10 years in the Weyburn-Midale project.

Besides, Cenovus and Apache had long-term agreements for CO2 supplied by the Dakota Gasification Plant in Beulah, North Dakota. Thus, for much of the last two years, I have been strongly suspecting Steelman

would be the ultimate destination for SaskPower’s CO2 The agreement between SaskPower and Cenovus is for 10 years, which is roughly in line with what Cenovus has previously stated when they would end injecting fresh CO2 into the field and simply continue recycling what they already had.

While it is great that the final part of the puzzle has come into play for the CO2 capture project, it leaves a few things to consider. First, what happens after 10 years? In that time frame, if this project is a success, SaskPower will likely have built CO2 capture facilities for Boundary Dam’s Units 4 and 5, and possibly 6 as well. Who will buy Unit 3’s CO2, and that of the additional units?

Perhaps the volume of CO2 available from Unit 3 alone, about one million tonnes a year, and a little more than a third of what is going into Cenovus’ and Apache’s projects, was not enough to provide the economy of scale necessary for CNRL to make the investment at this time. But they could be eyeballing such a project for 10 years down the road, when presumably the CO2 from Unit 3, and the subsequent units, would make the project large enough to proceed with CO2 EOR at Steelman.

To me, it almost feels like an opportunity has been lost with Steelman at this point. Seeing the Steelman field get the investment that has gone into the Weyburn and Midale fields would be a boon to many of the service suppliers in the area. It still may happen. We just may have to wait for 10 years.

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

Lee Side of Lloyd

By Geoff Lee

Oil industry plays give-and-go hockey No one is keeping score, but the oil and gas industry is way ahead of others when it comes to corporate support and commitment to the game of hockey in Western Canada.

Companies help keep the game going in small and larger communities through sponsorships, donations, and employee participation in coaching, refereeing, playing and cheering.

Some companies even use their own water trucks and hoses to help flood community outdoor rinks that are open to all during the long, cold winters.

In communities such as Kindersley, many oil and gas companies are also members of the local emergency response team.

Oil and gas responders were able to rush personnel and equipment to a fire that burned down the old Exhibition Stadium hockey rink in January 2010.

Their efforts helped to save a new adjacent arena and curling complex from extensive fire and smoke damage.

Many of those same companies rallied around fundraising for the new $12.2 million Co-op Arena that opened in February 2012.

It’s the same story of community involvement throughout the West with oil and companies stepping up to purchase costly naming rights for new arenas in

places such as Shaunavon and Provost.

Last year, dozens of oil and gas companies helped to put Lloydminster on the national hockey map with sponsorships and donations for the prestigious Allan Cup with the local Border Kings contending for the title.

Many of the players are recruited by oil companies to play on the senior men’s team as their way of giving back to the community.

Lloydminster had also been selected by CBC to host Scotiabank Hockey Day in Canada originally set for this February but put on hold due to the NHL lockout.

The event, when it happens, will provide oil and gas companies with high profile sponsorship opportunities and give the city the chance to showcase that strong oil and hockey connection.

Giving back is one of the most common, yet under publicized, hockey plays by oil and gas companies and their employees.

Go to any rink in communities where oil and gas activities are taking place and that’s where you’ll see coaches and players, referees and parents all leading the rush to volunteer their time to the game.

You could say volunteers who work for oil and gas companies and some of their family members make up the real National Hockey League.

The influence of oil and gas companies is prevalent

from logos on the ice and boards to hockey sweater, dressing rooms and sponsored tournaments for boys and girls of all ages.

Many oil and gas companies that support hockey at all levels also contribute to other sports because they want to and have a commitment to support the community they live in.

Without oil and gas companies contributing their time and money to sport there wouldn’t be as many opportunities for young boys and girls to play the game or develop their skills to represent Canada on the international stage.

The economic impact of oil and gas companies to the game of hockey is also huge with businesses such as restaurants, hotels, sporting goods stores benefiting from the game and event tournaments.

The impact of hockey tournaments in small communities is even more pronounced given the fact that oilfield workers are well paid and they take their families with them to out of town events.

It wouldn’t be a stretch to hear a sports broadcaster say the economy of Canada and the game of hockey are brought to you by the oil and gas industry as the good times roll in the west.

Next time the puck drops at your community rink, chances are the hunk of rubber will bear the name and logo of an oil and gas company. That’s the way the game is played in the oilpatch.

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

A8

PIPELINE NEWS February 2013

Crude-by-rail resulting in more revenue Éş Page A4 â&#x20AC;&#x153;I think when you start taking dollar amounts this high, itâ&#x20AC;&#x2122;s very meaningful. Itâ&#x20AC;&#x2122;s something we take very seriously. Just today, the premier had reached out to his counterparts in the United States, state governors, and they have come together and sent a letter to President Obama, encouraging him to support moving forward on Keystone XL.â&#x20AC;? â&#x20AC;&#x153;Three hundred million is foregone revenue to the people of Saskatchewan, and we take it very seriously.â&#x20AC;?

A large factor in these diďŹ&#x20AC;erentials has been restrictions in pipeline shipping capacity. This has often resulted in what has been termed the â&#x20AC;&#x153;pipeline diďŹ&#x20AC;erential.â&#x20AC;? â&#x20AC;&#x153;We have a great resource, a good investment climate, stable and predictable royalties in Saskatchewan â&#x20AC;&#x201C; all the things the industry is looking for. On the diďŹ&#x20AC;erential challenges, weâ&#x20AC;&#x2122;re seen that thereâ&#x20AC;&#x2122;s light in the short and medium terms, and some real solutions in the longer term.

He noted the recent upgrades to the Seaway pipeline between Cushing, Oklahoma, and the Gulf Coast as one example that should have an impact on Brent/WTI margins. â&#x20AC;&#x153;It seems on a very regular basis, new projects to take this mid-continental oil from Saskatchewan, Alberta, North Dakota, Montana, to diďŹ&#x20AC;erent markets on the East Coast and down to markets in the Chicago area are all coming forward. Thereâ&#x20AC;&#x2122;s a lot of work to be done. Some, hopefully in the short term, start tightening those margins.â&#x20AC;?

According to ministry oďŹ&#x192;cials, traditionally there has always been a spread between WTI and WCS, due in large part to the fact heavy oil is not as high

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quality of that of as light crude. Four years ago, heavy crude would get about 30 per cent less than WTI. However, that spread has since widened signiďŹ cantly.

And while Brent and WTI were generally pretty close, with WTI actually being worth more than Brent until recent years, WTI has been trading at signiďŹ cantly less.

As for other things oďŹ&#x20AC;ering light at the end of the tunnel, crude-by-rail is one.

McMillan said, â&#x20AC;&#x153;That is something that our industry deserves a great deal of credit for. Two, three years ago, almost no oil was going out by rail. Itâ&#x20AC;&#x2122;s the type of industry where entrepreneurs recognize opportunity when the margins and spreads got to a point where everyone is looking for alternatives. Today, about 11 per cent of our oil is going out of the province by rail. â&#x20AC;&#x153;There are great advantages to it. They can access world prices by sending a train of rail cars to the Irving ReďŹ nery in New Brunswick, instead of West Texas prices by sending it south. The market follows the money. Seeing the ramp up to 11 per cent, the industry is far more nimble as to where the product goes, but it costs a lot more per barrel to do it. Thereâ&#x20AC;&#x2122;s always a trade-oďŹ&#x20AC;.â&#x20AC;?

That higher return results in a better return for the province via royalties. . â&#x20AC;&#x153;This problem aďŹ&#x20AC;ects us, aďŹ&#x20AC;ects Alberta, Montana, North Dakota, in very meaningful ways. The diďŹ&#x20AC;erential does not recognize borders. Itâ&#x20AC;&#x2122;s not just a Canadian problem. This is a problem for everyone in central North America.

By reaching out to our colleagues across the border, in trying to put forward the case, thatâ&#x20AC;&#x2122;s very important. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;ve been on the record, very publically, supporting any project that meets the expectations on the environment and safety side with respect to pipelines. Weâ&#x20AC;&#x2122;ve been on the record supporting Keystone XL, Northern Gateway. We hear every day of new projects moving forward, taking our products to Chicago, Minneapolis, and to the East Coast, and to reďŹ neries in Quebec and Ontario,â&#x20AC;? McMillan said.

The numbers wonâ&#x20AC;&#x2122;t be in until after press time, but McMillan noted, â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s likely we will break the record set in 2008,â&#x20AC;? with respect to total oil production.

Saskatchewan was on track to hit 170 million barrels of oil produced over the year, beating the 161 million barrel record set in 2008. That brings the province to a daily production level of about 470,000 barrels per day.

For about a decade, Saskatchewan has historically produced on average 425,000 barrels per day.

The increase is very close to the volumes now being shipped by rail â&#x20AC;&#x201C; 53,000 barrels per day, the aforementioned 11 per cent of production. According to ministry oďŹ&#x192;cials, that 11 per cent shipped by rail is continuously ticking upwards, and it comes from all four major production areas. For instance, approximately 10,000 to 12,000 barrels are now shipped from the Viking play each day by rail.

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A9

Alberta Carbon Truck Line stated for 2014 build The use of CO2 for EOR in the region is expected to generate at least $15 billion in provincial royalties over its life.

“We are basically revitalizing that oil industry in that area,” said Cole.

“There’s a lot of focus in Alberta on Fort McMurray and oilsands. I think there are a huge amount of reserves in central Alberta that will bring the focus back to central Alberta.

“Just in our project alone, there are 8,000 direct and indirect jobs just in the first phase.”

Cole thinks the ACTL project will lay the groundwork for a cost-effective solution to the management of CO2 from Alberta’s upgrading, refining, power generation and petrochemical operations.

“It’s huge really. You only have to look at the United States and what the CO2 business looks like there,” said Cole.

“There are over 110 EOR projects in the U.S. and 4,000 kilometres of pipe. There is really no rea-

ConstrucƟon of the 240-kilometre Alberta Carbon Trunk Line by Enhance Energy Inc.will begin in 2014. The pipeline will employ safe proven technology to gather, compress and store up to 14.6 million tonnes of CO2 per year at full capacity. The CO2 with iniƟally be source from the exisƟng Agrium ferƟlizer plant and the North West Sturgeon ReĮnery now under construcƟon near Redwater Alberta and piped in dense phase to an Enhanced Oil Recovery and carbon capture and storage system near Clive.

CO2 will be used by Enhance Energy for light oil recovery and stored permanently underground. Image submiƩed

son why we don’t have a similar situation up here.

“Up here, we need that pipeline infrastructure to make a lot of these projects go. We do have a challenge in that we don’t have the naturally occurring CO2 supplies that they have in the U.S. “Our CO2 has to come from industrial sources.

That really is our challenge here.”

CO2 must be 95 per cent pure to allow for miscibility with the oil to make an EOR project work.

The ACTL project is touted as a step toward finding better ways to create capture-ready CO2 at the source.

“We see it growing. You really just have to look at the natural gas industry and how that pipeline system grew,” said Cole.

“Once you have the initial infrastructure in place, adding laterals is much more cost effective than if you have to build the big backbone again.”

“There is a huge opportunity for multiple projects once we have finished infrastructure in place.”

&216,*1 12: 72 285

ɺ Page A5 “Oil and gas has been trapped under the cap rock for millions of years, so we will just be operating in that same space that we’ve been extracting oil and gas from for the last 50 years.

“We would be drilling vertical wells. The reservoirs that we flood are very efficient with very high productivity so we don’t need the horizontal wells in that situation.

“There is lots of permeability in the reservoir so the communication between the producers and the injectors is very efficient.”

The ACTL project will store six times more CO2 than the Weyburn project in Saskatchewan and will cost $1.2, billion including capital and operating costs.

“The government is providing 50 per cent of that,” said Cole.

Funding includes $495 million from the Alberta government and $63 million from Ottawa to help Alberta cut its carbon emissions.

“There is a double win here,” said Cole about the benefits of the ACTL project.

“On the one hand you are reducing emissions, and on the other hand you are using the CO2 to produce light oil that has a lower carbon footprint than heavier oil,” she said.

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A10

PIPELINE NEWS February 2013

Carbon capture facility coming together

Mike Zeleny transiĆ&#x;oned from his former posiĆ&#x;on as plant manager of the Boundary Dam Power StaĆ&#x;on to project manager for clean coal transiĆ&#x;on to operaĆ&#x;ons. In this role he will oversee the commissioning process of the new carbon capture facility.

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Â&#x201E; Story and photos

by Brian Zinchuk Estevan â&#x20AC;&#x201C; SaskPowerâ&#x20AC;&#x2122;s revolutionary carbon capture plant is coming together at Boundary Dam Power Station, with construction personnel peaking soon and nearly all the procurement items secured. The $1.24 billion project is also on time and on budget. By fall, construction should be completed and commissioning is expected to begin.

Pipeline News had the opportunity to tour the capture facility on Dec. 21, just prior to work being shut down for the Christmas break. The tour was provided by Mike Zeleny.

Zeleny is a 39-year SaskPower veteran. In the new year he transitioned from his former position as plant manager of the Boundary Dam Power Station to project manager for clean coal transition to operations. In this role, he will oversee the commissioning process of the new carbon capture facility.

A steam power engineer with a ďŹ rst class certiďŹ cate, several years ago Zeleny worked on the commissioning of the Shand Power Station.

Traditional coal-ďŹ red power plants send their exhaust up the smokestack after it has seen particulates precipitated out. In the case of Boundary Damâ&#x20AC;&#x2122;s Unit 3, this exhaust will be ducted horizontally, to the west, where it enters the capture facility building.

There are two process trains in the building. The east side handles sulphur dioxide (SO2), while the west side takes care of carbon dioxide (CO2) Large ducts enter the building at its southeast corner. These ducts are routed to the sulphur dioxide absorber. â&#x20AC;&#x153;Flue gas goes up, amine in pumped down, and SO2 is absorbed,â&#x20AC;?

Zeleny said. â&#x20AC;&#x153;Thereâ&#x20AC;&#x2122;s a three-part system.â&#x20AC;?

Amine, a derivative of ammonia, does the bulk of the work. Several diďŹ&#x20AC;erent amines are used throughout the plant.

Once the SO2 is absorbed, the remaining exhaust comes out of the top. â&#x20AC;&#x153;This big fan sucks it out and blows it to the bottom of the CO2 absorber,â&#x20AC;? he said, pointing to a massive fan system.

The CO2 absorber is the largest pressure vessel in the plant, protruding through the roof. It was so large, a 650-ton crane had to be brought in a year ago to lift it into place, assisted by a second large crane.

Continuing down the east side of the building, the captured SO2 goes through a series of proprietary processes, Zeleny explained. â&#x20AC;&#x153;It culminates in the SO2 stripper, where steam heat from the Unit 3 turbine is added.â&#x20AC;?

That in turn drives oďŹ&#x20AC; the SO2. ɸ Page A11

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PIPELINE NEWS February 2013

Amine is key to the CO2 capture process. This massive tank stores it in the new capture facility.

Éş Page A10 The SO2 absorber has a large cinderblock structure around it, inside of which are two-foot thick concrete walls. Inside that are eight-inch by 12 inch ceramic tiles. â&#x20AC;&#x153;Thereâ&#x20AC;&#x2122;s 80,000 in there. Theyâ&#x20AC;&#x2122;re all hand-ďŹ tted, all 80,000,â&#x20AC;? Zeleny said. â&#x20AC;&#x153;In May or June weâ&#x20AC;&#x2122;ll start hauling amine here. Itâ&#x20AC;&#x2122;s a lot of semi loads.â&#x20AC;? â&#x20AC;&#x153;We (will) convert the SO2 to sulphuric acid in the sulphuric acid plant,â&#x20AC;? he said. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re working on a contract to sell our sulphuric acid. Itâ&#x20AC;&#x2122;s a commodity used worldwide. A lot is used in North America. Thereâ&#x20AC;&#x2122;s a large demand for it.â&#x20AC;?

Indeed, itâ&#x20AC;&#x2122;s a product SaskPower itself uses. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;ll be able to supply ourselves,â&#x20AC;? he noted, but it will be just a small fraction of the output. â&#x20AC;&#x153;We use a few tonnes a year. Weâ&#x20AC;&#x2122;ll be collecting 50 tonnes a day.â&#x20AC;?

The sulphuric acid will be shipped out by truck.

CO2 processes On the west side of the building one ďŹ nds the CO2 process train. â&#x20AC;&#x153;CO2 is absorbed by the amine and processed through the CO2 stripper, where a lot of steam heat is added from Unit 3,â&#x20AC;? he said. â&#x20AC;&#x153;CO2 is driven oďŹ&#x20AC; the amine. Itâ&#x20AC;&#x2122;s dehydrated, dried, and ready for the compressor, compressed up to 2,400 psi roughly, for sale to Cenovus.â&#x20AC;?

Just days before the tour, SaskPower an-

nounced that Cenovus had signed a 10-year contract to purchase the captured CO2. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s critical this is successful,â&#x20AC;? Zeleny said. â&#x20AC;&#x153;It will help SaskPower set the future of what our generating will be.

The business case is there that coal-ďŹ red with carbon capture is competitively priced.â&#x20AC;?

The whole package has to be considered, as CO2 sales are just one aspect. The electricity sales are the other.

Without a purchaser for the CO2, the power is a little higher priced than a combined cycle natural gas plant. They emit approximately 40 per cent of the CO2 that a traditional coal plant emits, according to Zeleny.

Several stories up, there are ďŹ ve reboilers which surround the CO2 stripper at its mid-point. Itâ&#x20AC;&#x2122;s one of the processes where pictures are not allowed, however.

At this level one can see several large steam pipes, at least 36 inches in diameter, which move high volume but low pressure steam through the various processes.

When all is said and done, the ďŹ nal exhaust port on the roof of the building is tiny in comparison to the towering smokestack it replaces. Thatâ&#x20AC;&#x2122;s because a large portion of what would have gone up the smokestack will have been captured.

Zeleny explained, â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re going to remove 90 per cent of the CO2, and SO2, and have exponentially lower

NO2 emissions. Ash is captured by the precipitators. What you have left is nitrogen and a little bit of oxygen from combustion. It removes trace metals as well, but does not capture mercury.â&#x20AC;?

Zeleny said SaskPower will be installing mercury-capture systems company-wide in the future.

Continuing construction The remaining work within the capture facility now is primarily piping and electrical.

They are also ďŹ nishing the insides of the SO2 and CO2 absorbers.

There are several rooms ďŹ lled with breakers and electrical cabinets. All the larger equipment is driven by 13.8 kilovolt motors. ɸ Page A12

A11

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A12

PIPELINE NEWS February 2013

CO2 and SO2 process trains ɺ Page A11 They required a good chunk of the parking lot near the west security gate to be given up in order to accommodate two transformers coming off the switch yard on the north side of the power plant.

The flue gas building, just north of the one that houses the capture processes, is still under construction. In this building, heat will be removed and then used in the feed heating plant for the turbine, a way of improving its efficiency.

This spring will see Unit 3 shut down, the turbine replaced and the boiler refurbished.

The boiler and turbine work is worth $354 million. “We’re replacing a lot of sections of the boiler that are worn out. Approximately 40 per cent is to be replaced.”

Much of that is at the top end, which sees

This heat exchanger, and others like it, are reasons a new cooling tower needed to be built.

more heat and corrosion.

Cooling tower added One part of the project that hasn’t seen

a lot of attention is the new cooling tower. It’s called a tower, but its horizontal nature belies its name. It will provide

cooling for the pumps, heat exchangers and compressors. Zeleny explained they couldn’t put any more heat into

Boundary Dam reservoir, and therefore a cooling system very similar to the one at the Shand Power Station

has been built. Shand has seven cells, while this new tower has five.

That means that, most notably on cool days, clouds of water vapour emanating from the tower will be everpresent. The tower cools through evaporation.

This is how the Shand cooling tower operates.

The cooling tower building also contains a water treatment plant.

This is necessary to reduce the buildup of solids, similar to scale in your teapot, in the system.

The tower has been situated on the south side of the facility, adjacent to the canal that sends warm water from the power plant to the reservoir. It was positioned such that additional cooling facilities can be built next to it.

“We located it specifically so we can build more cooling towers in the future,” Zeleny said. ɸ Page A13

PIPELINE NEWS February 2013 Éş Page A12 StaďŹ&#x20AC; development â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re working hard on recruitment for staďŹ&#x20AC; to commission, operate and maintain the facility. We have a signiďŹ cant amount of training, up to two to three months of classroom and on-the-job training, depending on the job,â&#x20AC;? Zeleny said.

â&#x20AC;&#x153;This is specialized training being developed by our vendor and will be delivered on site,â&#x20AC;? Zeleny stated. A subsidiary of SNC-Lavalin will provide a portion of this training. â&#x20AC;&#x153;We have other in-house training programs being developed here.

All have to meet SaskPower codes of practice for safety and the environ-

ment.â&#x20AC;? â&#x20AC;&#x153;The process itself is totally new, especially how it is integrated with Unit 3. Weâ&#x20AC;&#x2122;re going to learn together.

There are 120 systems that have to be commissioned and tested,â&#x20AC;? Zeleny pointed out.

The new turbine going into the â&#x20AC;&#x153;power islandâ&#x20AC;? in the power plant is the ďŹ rst turbine in the world of its

A13

kind, according to Zeleny. Itâ&#x20AC;&#x2122;s designed to provide steam for the CO2 capture process.

The steam coming oďŹ&#x20AC; the turbine and 20,000 horsepower compressors in the capture facility contribute to the parasitic loss of power generated

by Unit 3. But the new, modern turbine also has its increased eďŹ&#x192;ciency and runs at a higher temperature.

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The pyramid-shaped object on the right makes up the new exhaust port which will be a fair bit smaller than the smokestack it replaces. Here it is waiĆ&#x;ng to be installed.

Housing situation closely watched The Boundary Dam Unit 3 carbon capture project is ramping up to its ďŹ nal peak of construction personnel in the coming months, putting more strain on housing in Estevan. â&#x20AC;&#x153;So far, with construction staďŹ&#x20AC;, they seem to ďŹ nd housing,â&#x20AC;? said Mike Zeleny, who until the end of 2012 was the Boundary Dam Power Station plant manager, and is now the project manager responsible for commissioning the new carbon capture plant. â&#x20AC;&#x153;It has been diďŹ&#x192;cult for some. Some have had to travel from outside of Estevan,â&#x20AC;? Zeleny said. â&#x20AC;&#x153;In October we had over 800 contractors. Everyone seemed to ďŹ nd places.â&#x20AC;?

That number is set to climb to roughly 1,000 in the next few months. But as of the time of Pipeline Newsâ&#x20AC;&#x2122; tour, Dec. 21, the ATCO Estevan Lodge had not been ďŹ lled to capacity, he noted.

Zeleny pointed out that besides housing for temporary staďŹ&#x20AC;, they are having diďŹ&#x192;culties with permanent staďŹ&#x20AC; ďŹ nding places to live. â&#x20AC;&#x153;Thereâ&#x20AC;&#x2122;s not much housing available,â&#x20AC;? he said. â&#x20AC;&#x153;It can take a long time to ďŹ nd permanent housing â&#x20AC;&#x201C; and itâ&#x20AC;&#x2122;s expensive.â&#x20AC;?

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A14

PIPELINE NEWS February 2013

On time, and on budget: Boundary Dam’s carbon capture project

By Brian Zinchuk Estevan – The SaskPower Boundary Dam carbon capture project has nearly everything lined up, and now it’s just a matter of putting it all in place and making it work.

Mike Monea, SaskPower’s president for carbon capture and storage initiatives, spoke to Pipeline News just before workers went home for the Christmas holidays, and a day before the announcement was made that CO2 from the project would be sold to Cenovus.

Monea used two terms that aren’t common with large infrastructure programs, noting, “We’re on time, on budget, which is good.”

As of mid-De-

cember, there were 590 people working on the project, and he expected that number to swell

to 1,000 within four months, i.e. around April 2013.

A shutdown of

Unit 3 is planned for March, so work can be done on the “power island.” This is in essence

a heart transplant for the unit, with the old turbine being removed and a new, purpose-

A new cooling tower, similar to the one used at Shand Power StaƟon, was necessary to handle the heat generated by the CO2 capture process. This building also includes a water treatment facility on the far end.

built-for-CO2-capture turbine being installed.

The turbine was built by Hitachi in Japan and shipped here via the U.S. Regarding the capture plant, Monea said, “The compressors are here. They will be rolled in when the building is enclosed.

Other modules are already in place.

“The stator on the power island came last week (mid-December),” Monea said. It came from Japan via the United States.

The turbine is similarly from Japan, with some components made in Saskatoon.

A new generator and control system will be installed. The boiler will be refurbished, he said.

“It will put back into basically new condition.” ɸ Page A15

A15

PIPELINE NEWS February 2013 Éş Page A14 The exhaust will no longer go up the smokestack, but rather the tail end of the power island will be hooked up to the new ducting which will lead to the carbon capture plant. The ďŹ nal exhaust after the capture plant has done its work is indeed diminutive compared to the towering smokestack it will replace.

New fans that create more vacuum for the power island meant they had to beef up some of the structure in the power plant.

The capture plant is coming along. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s probably 60 per cent constructed right now,â&#x20AC;? Monea said.

The project has deďŹ nitely seen its share of labour pressures. â&#x20AC;&#x153;We had some diďŹ&#x192;culty getting pipeďŹ tters,â&#x20AC;? he said, noting that there has been some competition from the oil and gas and potash industries. They ended up putting on two shifts to alleviate the bottleneck.

A slight slowdown in those industries happened at just the right time, he said.

Housing those hundreds of workers, with hundreds more to come by spring, has been closely monitored. â&#x20AC;&#x153;We do not want to get into setting up a camp owned by SaskPower,â&#x20AC;? he said. They have blocked oďŹ&#x20AC; rooms at hotels for workers, however. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re getting daily reports on housing in Estevan,â&#x20AC;? Monea said, noting that the workers have seemed to ďŹ nd something, somewhere, to this point. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re checking out whatâ&#x20AC;&#x2122;s available,â&#x20AC;? he added.

Much of this issue falls to the subcontractor, SNC-Lavalin. Construction workers are paid subsistence pay, meant to cover food and housing.

While Cenovus has announced it will be purchasing the CO2 from the project, initially most the captured CO2 is slated to go into the Aquistore injection well, just a few kilometres due west of the plant, on SaskPower land. There it will be injected into the deepest formation in the province, a saline aquifer directly above the Precambrian bedrock â&#x20AC;&#x153;basement.â&#x20AC;?

The pipeline to the Aquistore project is expected to see work happen some time after spring breakup.

All of this needs to be in place for operations to begin in October. Thatâ&#x20AC;&#x2122;s when commissioning is scheduled to begin. â&#x20AC;&#x153;The big thing is weâ&#x20AC;&#x2122;re getting so much global attention,â&#x20AC;? Monea said. â&#x20AC;&#x153;Companies and countries are looking over the fence to see how weâ&#x20AC;&#x2122;re doing.â&#x20AC;?

To that end, a symposium to get the word out is planned for Regina on May 21-23.

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A16

PIPELINE NEWS February 2013

30 years for Travelodge Hotel Weyburn Over half their business has been oilpatch-related Story and photos by Brian Zinchuk Weyburn – In 1969, the first of three brothers decided to leave Greece to seek his fortune in Canada. Now on Feb. 1, those three brothers are celebrating their 30th year as owners and operators of a Weyburn hotel/restaurant operation – the Travelodge Hotel Weyburn and the appropriatelynamed Brothers Pub and Grill.

You can’t miss the Travelodge, at the crossroads of Highways 39 and 35. In August 2012, they opened their new four-storey building, with Brothers on the main floor along with several meeting rooms and other facilities. The next three floors contain 54 rooms of varying configurations, including Jacuzzi suites.

Three brothers own and operate the place – John, George and Harry Siourounis. John is the eldest, and the one who started their Canadian adventure. All three are equal partners. Pipeline News sat down with George and Harry, since John was on holidays back in Greece at the time. They’ve worked together so long, the brothers sometimes completed each other’s sentences.

“It’ll be exactly 30 years,” Harry started.

“Feb. 1, 1983,” George finished. “It was the El Rancho. We bought it when it was closed down

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Harry Siourounis primarily looks aŌer Brothers Pub and Grill, the hotel’s in-house restaurant.

from the receiver. Then we opened the doors March 4, 1993. We did some cleanup; whatever renovations we could afford. Any money we made, we put into renos.

“Four years later we did a complete renovation.

Stepping back, their adventure started in Greece, where they were all born, and where they still have a brother who’s a lawyer, Kostas, and a sister, Xristina.

“John moved to Canada in 1969 when he was 17. I moved to Canada in 1978, and Harry moved in 1981,” George said. George was 24 when he came, and Harry was 25.

“John moved to Toronto, then to Eastend, Saskatchewan.”

There was no work for John in Greece, George noted, plus, Greeks have a penchant to go places.

“We like to travel. We like to go places, like Homer,” he said.

“My father was very poor. My family was very poor. University cost a lot of money, and I had no

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job, so I’d go to Canada and find money on the streets! It was a different story. I had to work very hard,” George said.

Before they could leave, the two younger brothers had to put in their time serving compulsory military service in the Greek army. Harry put in 30 months, and George did 28. John left before he was drafted.

John became a partner with a first cousin in an Eastend restaurant. All three of them would end up moving to Weyburn in 1982, where they leased the Voyager Restaurant, which was part of the local Esso gas station.

A year later, they bought the El Rancho, which was a motel and restaurant. It had once been part of a chain of motels, back in the 1950s.

The brothers soon found their business would be tied to the oilpatch, enjoying the ups and suffering through the downs. Long before the Bakken came to the fore five years ago, Weyburn had been an oil town.

“We’ve had our ups and downs. Our business is very tied to the oil business. We’ve had a lot of people from the oil business staying here,” George said.

“Over the years, a good 60 per cent is oil-related,” Harry added.

When the downs came, they could be really down.

“In 1985, on Dec. 23, we were completely booked. We were begging them to go home, so we could have a break. On Dec. 27, oil dropped to $5 a barrel, and the phone never stopped ringing with people cancelling,” George recalled. “If you didn’t plan for those down times, you could be in trouble.”

“We’re still here. We’ve had to work 18, 20 hours a day, but we’re still here,” Harry said.

George said, “In 1991 we bought the old CocaCola building. It became the Connections Night Club.” ɸ Page A17

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PIPELINE NEWS February 2013

A17

in the Bakken, despite the global recession. George said, “Alberta got hit then, but we were still hiring here.”

Asked what had the biggest impacts recently, Harry said, “The Bakken formation and government policies.”

Did the 2007 change in government make a difference? He responded, “Yes. If you have the same party the same government for years, even the politicians get tired. There are new people, fresh ideas, and a new point of view.”

While the change in government didn’t affect them directly, it did have an impact on their clients “It’s the recovery of the Bakken – new technology to explore oil, government change, policies – not to touch royalties, Harry continued.

George said, “The new government didn’t change the previous government’s policies. That’s what helped.”

Big choices to make With strong demand from the oilfield now, the motel at the crossroads came to a crossroads in business. ɸ Page A18 George Siourounis displays a Jacuzzi suite on the top Ňoor of the new Travelodge Hotel in Weyburn.

ɺ Page A16 “We had 42 rooms. In 1998, we built another 32 rooms, the two-storey building,” George said.

They saw an impact from the dot.com bust in 1999. “A lot of people lost a lot of money, and Americans stopped coming,” George said.

Then when Sept. 11, 2001 hit, it, too, had an impact. Harry said, “The economy was not great.”

George added, “We used to get a lot of travellers, going to Alaska. After Sept. 11, they stopped travelling.”

At the same time, the oil business wasn’t booming, but it wasn’t bad. But in the early days of the Bakken boom, things started to seriously pick up.

George said, “2007, for us, was one of our best years. It started in 2006. We started seeing frac crews. They’re not local. In 2007, we had a Halliburton frac crew that was staying by the month here!”

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A18

PIPELINE NEWS February 2013

Bakken growth fuelled decision to build new hotel Éş Page A17 George said, â&#x20AC;&#x153;We had about 60 rooms at that time. We had three choices â&#x20AC;&#x201C; put more money into an old building, and still have the problems of an old building, sell it, or build a new place.

Moving wasnâ&#x20AC;&#x2122;t much of an option, given their prime location already. So in 2010, they started seriously looking at changes.

Contractors told them it would take 18 to 24 months to be in a new building. That was way too long to have their prime money-maker out of operation, since building new would require ďŹ&#x201A;attening the old El Rancho restaurant and motel and building in the same location, while leaving the 1998 building intact. Instead, they chose to act as their own general contractor, and pulled the trigger in the spring of 2011. â&#x20AC;&#x153;It took us about six months of back and forth with the architect,â&#x20AC;? George said. â&#x20AC;&#x153;One and a half years later, we have this place now.â&#x20AC;?

On Aug. 1, 2012, Brothers opened for business.

By the end of the month, they started taking hotel guests in the new building. They had been aiming for completion in 11 months, but had to settle for 13, a remarkable feat considering nearly all new construction projects in southeast Saskatchewan over the past four years have ended up completed three to six months past their planned completion date. The new building has four storyes, with 54 rooms in the new building, adding to the 32 in the 1998 building, which was also renovated.

Facilities The main ďŹ&#x201A;oor has four meeting rooms, three of which are large enough for 60 people, and an executive boardroom. Two of those meeting rooms can be joined by opening up a wall.

They donâ&#x20AC;&#x2122;t have raucous wedding dances, however, since they donâ&#x20AC;&#x2122;t want loud music keeping up their guests sleeping in the ďŹ&#x201A;oor above. Itâ&#x20AC;&#x2122;s mostly families and business they cater to, Harry said. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;ve positioned ourselves as a business hotel, and weekends for families,â&#x20AC;? George said.

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Also on the main ďŹ&#x201A;oor is the Brothers Pub and Grill, and a combined hot tub/exercise area. They didnâ&#x20AC;&#x2122;t want a full-scale pool due to maintenance and liability issues. Besides, in canvasing their clientele, they found they want somewhere to exercise and then soak away their day in a hot tub. A pool would have been underused.

Rooms are equipped with fridges, coďŹ&#x20AC;eemakers, microwaves, hair dryers and ironing boards. Thereâ&#x20AC;&#x2122;s a 32-inch ďŹ&#x201A;atscreen TV and both wireless and wired internet. But they chose to forego kitchenettes, noting many ask for them, but few actually use them.

Thereâ&#x20AC;&#x2122;s no smoking allowed in the new building, but the older motel portion has smoking rooms.

Weyburn has seen tremendous growth in its hotel business in recent years, with two entirely new hotels and two other expansions of existing facilities.

Their niche, they say, is meeting the demand for good, clean, comfortable hotel rooms â&#x20AC;&#x201C; in a fullservice hotel, i.e. one with a restaurant.

Indeed, of all the numerous southeast Saskatchewan hotels that have been covered by Pipeline News in the past four years, theirs is the only one with a full restaurant.

According to George, restaurants have more headaches, and you have to know how to run them, which is why most hoteliers have shied away from including them. But restaurants have long been the business of the Siourounis brothers. â&#x20AC;&#x153;They donâ&#x20AC;&#x2122;t come every day, but they come. Itâ&#x20AC;&#x2122;s convenient,â&#x20AC;? he said of their hotel clientsâ&#x20AC;&#x2122; patronage of the pub and grill.

All three brothers work every day, they say. They each know every aspect of the operation, including on anotherâ&#x20AC;&#x2122;s specialties. Harry generally looks after the restaurant and food services. George looks after the hotel, while John also looks after the hotel and maintenance. ɸ Page A19

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PIPELINE NEWS February 2013

A19

Éş Page A18 In addition to the brothers, their wives have been heavily involved as well.

That includes Johnâ&#x20AC;&#x2122;s wife Maria; Georgeâ&#x20AC;&#x2122;s wife Popie; and Harryâ&#x20AC;&#x2122;s now-ex-wife, Angie. â&#x20AC;&#x153;Our wives support us and help us. They support us too much. They work in the restaurant, make rooms, are in the laundry room when we need it or are short staďŹ&#x20AC;ed,â&#x20AC;? George said. â&#x20AC;&#x153;Or short money,â&#x20AC;? Harry added.

All seven children among them, now grown, have also helped out over the years, but Harryâ&#x20AC;&#x2122;s son, Mike, is the only one still involved. He bought out the nightclub seven years ago. It is now known as Detour Bar & Grill. George noted, â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s a young-manâ&#x20AC;&#x2122;s business.â&#x20AC;?

Workers and housing In a hot labour market, the Siourounis brothers were early adopters of the idea of bringing in foreign workers. Roughly half of their staďŹ&#x20AC; are foreign workers, including much of the housekeeping and kitchen staďŹ&#x20AC;. â&#x20AC;&#x153;Without foreign workers, we could not operate,â&#x20AC;? Harry said.

Their ďŹ rst was, Oleh Shkapoyid, a cook from Ukraine who came seven years ago. â&#x20AC;&#x153;An excellent worker at that,â&#x20AC;? Harry said. â&#x20AC;&#x153;He moved his family. His wife works at the hospital. He will soon be a Canadian citizen if he is not already.â&#x20AC;?

Their second was Filipino Manuel Belarmino, who came ďŹ ve years ago.

Both can still be found in the kitchen. At lunch time, the smell of their food wafting throughout the restaurant is mouth-watering.

New arrivals are provided with housing in the hotel for a month until they get their bearings. So far, they have not done what many other businesses in the southeast have done â&#x20AC;&#x201C; set up their own staďŹ&#x20AC; housing. They note that housing prices are â&#x20AC;&#x153;outrageousâ&#x20AC;? and â&#x20AC;&#x153;unbelievable,â&#x20AC;? now.

Harry said, â&#x20AC;&#x153;Three years ago, we had three people start from Ontario. A few months later, they moved back. They couldnâ&#x20AC;&#x2122;t aďŹ&#x20AC;ord the housing.â&#x20AC;?

Even now, they have staďŹ&#x20AC; who are having a hard time ďŹ nding an apartment.

Harry said the support of the local people and the cityâ&#x20AC;&#x2122;s businesses has made a big diďŹ&#x20AC;erence. â&#x20AC;&#x153;Without their support, this wouldnâ&#x20AC;&#x2122;t be here.â&#x20AC;?

He added, â&#x20AC;&#x153;We appreciate our staďŹ&#x20AC;,â&#x20AC;? noting some have been there 26, 13 and 11 years.

In touring around the facility, George concluded, â&#x20AC;&#x153;We are very proud of this place, how it was built.â&#x20AC;?

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A20

PIPELINE NEWS February 2013

Wotherspoon supports sovereign wealth fund

Trent Wotherspoon.

Photo submiƩed

By Brian Zinchuk Pipeline News asked each of the four Saskatchewan New Democratic Party leadership candidates a bank of questions about their energy policy. The official Opposition’s new leader will be chosen March 9. These are the responses of Regina MLA Trent Wotherspoon.

Pipeline News: Where are you from and what do you do? What riding do you represent or will you be running in?

Trent Wotherspoon: I was born and raised in northwest Regina, studying business and education at university. As a teacher and in the community, I’ve worked to help our young people reach their full potential—particularly some of our society’s most vulnerable. I have had the opportunity to lead the development of new and effective education and community programs. I’ve also gained direct experience in business, operating a successful small business to pay my way through university, and serving as a director on the Warehouse District’s Business Improvement District.

Since 2007, I’ve been privileged to be chosen twice by the voters in Regina Rosemont to represent them in the legislature as an MLA. I’ve served as official Opposition critic on various files, including, finance, education, SaskPower, SaskEnergy, and I also serve as the chair of the Public Accounts Committee.

PN: Do you have any energy sector experience?

TW: As the NDP representative charged with reaching out to our province’s booming southeast, I’ve seen first-hand on many occasions the important role this sector of our economy plays in contributing to our shared prosperity.

As finance critic, I also understand how much a thriving energy sector contributes to the education, health and other programs Saskatchewan families and communities rely upon, and I’m committed to seeing that we benefit not only today, but also for years to come by ensuring the growth of today builds better, stronger, healthier communities for tomorrow.

PN: What is your plan for Saskatchewan’s energy policy?

TW: We need to ensure a strong, viable energy sector that benefits communities today, as well as the next generation. It must be about capturing the opportunity of today’s resource prosperity in a manner that builds better, healthier, stronger communities for tomorrow. ɸ Page A21

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PIPELINE NEWS February 2013 Éş Page A20 I support a strong resource sector and economy, one that provides a fair return to Saskatchewan people and communities, that respects our environment and that invests in the future, including setting aside dollars for future generations.

While I am supportive of ensuring we are able to access export markets in a responsible way, I do also support pursuing projects that add value and jobs in Saskatchewan and Canada, such as considerations to increase reďŹ ning capacity.

I also believe in improving the accessibility of apprenticeship and skills training to ensure that we are able to develop the workers required for this industry, and to ensure we do all we can to protect the safety of those workers, while seeing that they too, are able to share in the prosperity of the resource sector and our province.

I am also interested in learning from industry stakeholders what can we do to see more head oďŹ&#x192;ces here in our province or some head oďŹ&#x192;ce jobs, possibly focused on smaller oil and gas companies.

Furthermore, I support the expansion of the current LabourSponsored Venture Capital Fund tax credit.

Saskatchewan residents have responded quite favourably to the current LSVC. In addition to providing an investment option for Saskatchewan people, the LVSC beneďŹ ts many locally based oil and gas ďŹ rms that are represented in the funds oďŹ&#x20AC;ered within our province.

PN: Will you be doing anything with

regards to royalties or incentives?

TW: Iâ&#x20AC;&#x2122;ve said that we need to develop a sovereign wealth fund similar to the Heritage Fund of the Blakeney government or that of Norway so that the non-renewable resource boom of today also serves to improve the lives of generations to come.

Furthermore, Iâ&#x20AC;&#x2122;ve also said that we should establish an independent body of resource experts to hold public hearings, conduct reviews, and make public recommendations every two years to the provincial cabinet to ensure that the owners of our resources, the people of Saskatchewan, are receiving a fair return.

PN: Former leader Dwain Lingenfelter expressed a desire for the province of Saskatchewan to get back into the oil and gas industries a la SaskOil, especially with regards to gas production. What is your take on this?

TW: As far as the Crown sector is concerned, my focus has been on strengthening our current Crown corporations, giving them the solid footing required to meet the needs of Saskatchewan people, businesses and communities. People are concerned by the erosion and weakening of the Crowns under the current government: inappropriate dividend raids, constraints that prevent them from operating independently, and policies of contracting-out and privatization that defy common-sense and our provinceâ&#x20AC;&#x2122;s best interests.

My policies are focused on supporting and building a strong Crown sector to serve

our province: itâ&#x20AC;&#x2122;s just good public policy and smart management.

PN: In the ďŹ rst nine months of 2012, Saskatchewan drilled all of nine natural gas wells, down from over 2,700 ďŹ ve years before.

What, if anything, can or should the province do about these low numbers?

TW: The NDP sought to create a competitive oil and gas regime, and also encouraged the development of new technologies such as carbon sequestration.

As it relates to the current market conditions and natural gas activity, my approach would be to seek input from sector stakeholders, and make decisions in the best interest of our province.

Furthermore, I think a New Democratic Party government should continue its tradition of investing in research through the Petroleum Technology Research Centre, the Sask. Research Council and both universities to support this industry in a responsible way.

PN: What is your take on federal NDP leader Thomas Mulcairâ&#x20AC;&#x2122;s assertions that Western Canadaâ&#x20AC;&#x2122;s strong energy sector has resulted in a case of â&#x20AC;&#x153;Dutch disease.â&#x20AC;?

What impact does this have on Saskatchewan,

if any, and is there anything you would do about it?

TW: We must work together to develop our resources in a responsible, sustainable way that beneďŹ ts people and communities. In Saskatchewan, we want to develop this industry, but in doing so, we must guarantee that we meet the social and physical infrastructure needs of people and communities, and protect our natural environment for future generations â&#x20AC;&#x201C; it is

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about ensuring responsible development. I am committed to those principles, principles that are shared by our federal party.

We know some communities such as Estevan are really booming, but also struggling to keep up with infrastructure demands.

A lack of available housing is the top issue I hear about from families in the southeast. What we need is a responsible development plan, as Allen Blakeneyâ&#x20AC;&#x2122;s friend

A21

Peter Lougheed talked about in Alberta, and I know we can come up with a made-in-Saskatchewan plan to deal with the opportunities and the challenges of growth and development in the resource sector.

PN: Now that Cenovus has bought Oilsands Questâ&#x20AC;&#x2122;s assets, Saskatchewan oilsands development seems much more likely. What is your stand on this? ɸ Page A22

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A22

PIPELINE NEWS February 2013

Out in the cold

A crew could be seen moving some hoses on a well site along Highway 13 near Griĸn on Jan. 17.

Photo by Brian Zinchuk

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Develop our resources in a responsible, sustainable way Éş Page A21 TW: Oilsands development is diďŹ&#x20AC;erent in Saskatchewan since the geology of our current oilsands is deeper and under a shelf compared to oilsands located in Alberta. We must ensure that any development proposals meet the strictest environmental conditions, applying a rigorous, evidence-based analysis of any potential plan, one that includes full consultation and the perspective of the regionâ&#x20AC;&#x2122;s people and communitiesâ&#x20AC;&#x201D; just as we should for any resource development project.

PN: Where do you stand on the proposed Keystone XL and Northern Gateway pipelines?

TW: Weâ&#x20AC;&#x2122;re a province and part of a nation that depends on development and export of

resources. The National Energy Board, NEB, must serve any new pipeline as its regulator.

The NEB uses a triple bottom-line analysis model, including social, environmental and economic implications.

No pipeline should be built by watering down regulations, or without ensuring community consultations and comprehensive impact studies are properly conducted in order to ensure those aďŹ&#x20AC;ected by these developments feel conďŹ dent in the process.

It is fair to say I have great concern with the lack of respect for and consultation with communities and lands impacted by the proposed Northern Gateway pipeline.

While I am supportive of ensuring we are able to access export markets in a responsible way, I support the pursuit of projects that add value and jobs in Saskatchewan and Canada, such as considerations to increase reďŹ ning capacity.

PN: All four candidates represent a substantial generational shift for the Saskatchewan NDP. What does that mean from your perspective?

TW: I think this is a tremendous moment of opportunity for our party. The generational shift itself signals renewal for the future as we will elect a leader that is able to commit to the full process of renewal and building.

We have strong candidates and I think this is our moment to choose a leader who can unite the party, while reaching out to earn the backing of those who may not have supported the NDP before. I believe in an approach and process of genuinely listening to all regions and communities in our province. When we have sincerely reached out, connected and listened to the challenges and opportunities of our province and reďŹ&#x201A;ect that in our plans and actions, we will be able to be the relevant, progressive force that we must be.

We must be focused on realities of today and the possibility of tomorrow, allowing us to fully capture our potential without dismissing legitimate challenges that must be addressed.

I believe it is together that we will build a better, fairer, more prosperous Saskatchewan for all.

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PIPELINE NEWS February 2013

A23

CN dispatched emergency response crews and equipment to the scene of a derailment of 16 crude oil tank cars on Jan. 24. Four or ÄŽve of the cars were reportedly leaking an unspeciÄŽed volume of oil at the scene. As many at 10 vacuum trucks were being called in to clean up any spilled product. The derailment was caused by a collision with a grader at a CN crossing in Paynton. The driver of the grader was killed in the accident.

There were no injuries to CN crews on board the eastbound train. Photos by GeoÄŤ Lee

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One dead in CN oil train collision Â&#x201E; By GeoďŹ&#x20AC; Lee Paynton â&#x20AC;&#x201C; OilďŹ eld vacuum trucks and heavy equipment were sent to the scene of a CN train derailment in Paynton Saskatchewan that left one person dead.

An eastbound train carrying crude oil struck a grader at a CN crossing at a grid road around 9 a.m. on Jan. 24, killing the grader driver and derailing 16 tank cars.

The train engineer and crews were not injured in the collision that forced the closure of CN Railâ&#x20AC;&#x2122;s northern line.

The crossing was protected by railway crossbucks and visibility at the time of the collision was good according to an RCMP report.

Pipeline News was at the scene that afternoon and photographed a slew of emergency response vehicles, graders, and cranes and crews at the site.

As a result of the collision, one locomotive had derailed, but remained upright as cranes and other rescue equipment swung into action and police restricted access to the public.

RCMP reported that the Maidstone ďŹ re department was on the scene immediately after the accident, assisting while CN crews worked to contain the spilled oil.

CN spokesperson Warren Chandler said the initial indications were that four and perhaps ďŹ ve tank cars were

â&#x20AC;&#x153;leaking product,â&#x20AC;? but he couldnâ&#x20AC;&#x2122;t determine how much. â&#x20AC;&#x153;As soon as the leak was discovered, CN immediately put in place a response plan that involves sending 10 vacuum trucks to the site,â&#x20AC;? said Chandler. â&#x20AC;&#x153;CN is taking the lead and we are the ones who have activated our response plan. â&#x20AC;&#x153;Further CN environment oďŹ&#x192;cials, led by our vice-president of safety and sustainability, John Orr will be on site and will oversee and participate in the clean-up of this leaked product.â&#x20AC;?

Chandler didnâ&#x20AC;&#x2122;t speculate how long it would take to clean-up the oil and the wreckage, but he noted the cleanup would include

any required remediation.

Chandler also noted that railway crossing protection is governed

by Transport Canada.

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PIPELINE NEWS February 2013

Phones on the bench and sticks on the ice Bienfait â&#x20AC;&#x201C; When your team is largely made up of oilpatch workers, itâ&#x20AC;&#x2122;s no surprise that many have to check their phones on a regular basis, even during the game. One of those senior hockey players is Matt Garagan, No. 15 with the Big 6 Hockey Leagueâ&#x20AC;&#x2122;s Bienfait Coalers.

Garagan is a project co-ordinator for Estevan-based T. Bird Oil and Firesky Energy. â&#x20AC;&#x153;I was a ďŹ eld operator before this,â&#x20AC;? he said prior to a game versus the Redvers Rockets on Sunday, Jan. 13. It was a makeup game after a storm put the kybosh on a matchup two days earlier.

Garagan, 26, has spent nine years working in the patch, the last four-anda-half with T. Bird Oil. â&#x20AC;&#x153;Iâ&#x20AC;&#x2122;m in the ďŹ eld daily,â&#x20AC;? he said.

Heâ&#x20AC;&#x2122;s originally from Kerrobert and Coleville, but his family moved to southeast Saskatchewan in his high school years. ɸ Page A25

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MaĆŠ Garagan is captain of the Bienfait Coalers when heâ&#x20AC;&#x2122;s not working as a project coordinator for T. Bird Oil. Photo by Brian Zinchuk

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A25

One goal, one assist, and one penalty for MaĆŠ Garagan, who is seen here being guided to the penalty box.

Éş Page A24 â&#x20AC;&#x153;I moved here when my dad took a job here and transferred. Heâ&#x20AC;&#x2122;s a production foreman with Renegade Petroleum,â&#x20AC;? Garagan said.

Hockey runs in the Garagan blood. His younger brother, Wyatt, is No. 6 with the CanElson Drilling Estevan Bruins. Matt personally played Midget AA in Estevan.

Working in the patch is also common for the Garagans. Greg, the oldest, is a general manager for Fiberspar in Edmonton, while Kyle works with the Estevan location. Wyatt is still in high school. â&#x20AC;&#x153;I went straight to the workforce,â&#x20AC;? Matt said.

Mattâ&#x20AC;&#x2122;s wife, Lisa, is a registered nurse with home care in Estevan. They have a two-year-old son, Levi, who isnâ&#x20AC;&#x2122;t in skates yet, but Matt promised that would be â&#x20AC;&#x153;right away.â&#x20AC;? â&#x20AC;&#x153;Sheâ&#x20AC;&#x2122;ll bring our son out. He watches. Heâ&#x20AC;&#x2122;s pretty good at following it,â&#x20AC;? Matt said.

Mattâ&#x20AC;&#x2122;s in his ninth year with the Bienfait Coalers. He plays left wing. Heâ&#x20AC;&#x2122;s also captain of the team.

Asked if heâ&#x20AC;&#x2122;s any good, he responded, â&#x20AC;&#x153;I used to be, getting a little slower now.â&#x20AC;?

During the Jan. 13 home game versus the Redvers Rockets, Matt got something close to a Gordie Howe hat trick, with a goal, an assist and a penalty where both he and a Rocket got sent to the box. There were no ďŹ sticuďŹ&#x20AC;s, though.

The Coalers would go on to win the game 9-4, putting the team at 11-2-0 for second place as of Jan. 13. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s competitive. They still love to play and get out of the house,â&#x20AC;? he said of the leagueâ&#x20AC;&#x2122;s players. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s competitive on the ice and social after.â&#x20AC;?

The regular season runs from the middle of November until early February, with playoďŹ&#x20AC;s wrapping up by the end of March. â&#x20AC;&#x153;We won the league title the last two years in a row and went to the provincial A ďŹ nal last year. We lost in the ďŹ nal game. Maybe weâ&#x20AC;&#x2122;ll win league this year for a three-peat?â&#x20AC;? he said.

The vast majority of his team members work in the patch. â&#x20AC;&#x153;Oil is so busy down here, thatâ&#x20AC;&#x2122;s where people go to work.

Many players are on call or shift work. â&#x20AC;&#x153;So many work in the oilďŹ eld, some days you have a full team, sometimes you have 10 skaters. Guys get called out, or show up after the ďŹ rst period because they had to work late. â&#x20AC;&#x153;Thereâ&#x20AC;&#x2122;s phones on the bench. Guys check them every shift or between periods, whatever you have to do.

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A26

PIPELINE NEWS February 2013

All but three of the Bienfait Coalers work in the oilpatch.

Nearly all of the Bienfait Coalers work in the patch Bienfait â&#x20AC;&#x201C; When you ask the Bienfait Coalers how many of them work in the oilpatch, almost all raise their hands. Just three donâ&#x20AC;&#x2122;t work in the patch, and theyâ&#x20AC;&#x2122;re with SaskPower.

Thereâ&#x20AC;&#x2122;s a lot of hockey talent in the oilďŹ eld, according to Richard Hogg.

Richard Hogg has been the trainer and assistant coach with the Big 6 Hockey Leagueâ&#x20AC;&#x2122;s Bienfait Coalers for a long time. â&#x20AC;&#x153;This is my 14th year. Iâ&#x20AC;&#x2122;ve seen a lot of players come and go,â&#x20AC;? he said.

Many players have been on junior or midget AA teams. He said, â&#x20AC;&#x153;They just ďŹ t in.â&#x20AC;? â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;ve got some very good players. One played two games in the NHL with the Ottawa Senators. â&#x20AC;&#x153;This town has had good players. Everybody is from here. Theyâ&#x20AC;&#x2122;re all local kids, which is nice.

The goalie is an engineer, he noted. There are lots of tradespeople on the team, too.

The roaster has been upped in recent years to 25. Thatâ&#x20AC;&#x2122;s because the oilďŹ eld, with its demanding hours and shift work, can often pull players away from games. With teams in Midale, Bienfait, Wawota, CarnduďŹ&#x20AC;, Arcola, Revers, Oxbow and Carlyle â&#x20AC;&#x201C; the very heart of oil country, accommodations had to be made. â&#x20AC;&#x153;We usually have two games a week and a practice once a week,â&#x20AC;? he said.

Hogg personally played rec hockey for many years, but hung up his skates several years ago.

Unlike most of the players on his team, heâ&#x20AC;&#x2122;s not in the patch, however. â&#x20AC;&#x153;Iâ&#x20AC;&#x2122;m a welder at the mines. Iâ&#x20AC;&#x2122;m in my 36th year there,â&#x20AC;? Hogg said.

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PIPELINE NEWS February 2013 Brent Gedak, curling here on Jan.18 in the Southern Playdowns in Estevan, will be one of the oilmen curling at the Estevan oilmens bonspiel in March. Gedak advanced to provincials, but results were not available at press Ć&#x;me.

Estevan OTS bonspiel coming up Estevan â&#x20AC;&#x201C; The Estevan Oilfield Technical Society held its annual general meeting on Jan. 23, the highlight of which is a return to normal for their upcoming golf tournament.

In 2011, the tournament was cancelled since the host course was nearly completely under water due to flooding. The next year, the tournament was reduced in size and split between two venues, since the back nine of Woodlawn Golf Club had been severely damaged by the previous yearâ&#x20AC;&#x2122;s flooding. Now, things are back on track The event will take place May 31-June 2, the weekend prior to the Saskatchewan Oil and Gas Show in Weyburn. â&#x20AC;&#x153;It helps boost our numbers,â&#x20AC;? said Brett Campbell, re-elected OTS president.

People come for the golf tournament, and stay for the oil show, he noted.

They will be returning to the usual format for the tournament before the flooding. That means golfers can choose either 18 holes on one day, or 36 holes on two days. If they go for 36 holes, they can golf Friday and Sunday or Saturday and Sunday. Those golfing 18 holes can do it on either Friday or Saturday.

Entries to the 36-hole event are limited to 288.

Campbell thanked Hidden Valley Golf Resort for stepping up last year, adding the additional venue. Without them, the event would not have been possible.

A lot sooner than the golf tournament, however, will be the upcoming annual Oilmenâ&#x20AC;&#x2122;s Bonspiel. It will take place March 21-24.

This, too, will be in the same format as previous years, and include a banquet and live band on the Friday night.

The bonspiel can accommodate up to 64 teams, but in the past few years it has topped out around 44.

Registration information can be found online at www.estevanots.com. Entry fees are $300 per rink.

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A27

A28

PIPELINE NEWS February 2013

PIPELINE NEWS February 2013

A29

Canalta Hotels sponsors SJHL Championship tant.â&#x20AC;?

Canalta has targeted key natural resource areas, with two hotels in Weyburn, another in Moosomin, and one in Shaunavon.

They are continuing to build. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re building Assiniboia right now. We broke ground in the fall. We should be open late spring, early summer,â&#x20AC;? HoďŹ&#x20AC;ert said.

Esterhazy opened in October.

In Shaunavon, he said, â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s been very good.

They were in need of a hotel.â&#x20AC;?

HoďŹ&#x20AC;ert reported they havenâ&#x20AC;&#x2122;t been full, but â&#x20AC;&#x153;itâ&#x20AC;&#x2122;s a strong showing. Weâ&#x20AC;&#x2122;re in for the long term.â&#x20AC;?

As for sponsoring the SJHL championship, he said, â&#x20AC;&#x153;It was a great vehicle to get our name out.â&#x20AC;?

6835(0( 675((7 Canalta Hotels ÄŽrst targeted the oilpatch when establishing themselves in Saskatchewan. Now they are the sponsors of the SJHL champship. Photo submiĆŠed

Regina â&#x20AC;&#x201C; When Canalta Hotels ďŹ rst launched in Saskatchewan, their initial target was Saskatchewanâ&#x20AC;&#x2122;s oilďŹ eld. They ďŹ rst built a Ramada in Weyburn, and then soon afterwards, the ďŹ rst in a new brand â&#x20AC;&#x201C; Canalta â&#x20AC;&#x201C; next door.

Now the group has hotels sprouting throughout the province, with one of the most recent additions being yet another oilďŹ eld town â&#x20AC;&#x201C; Shaunavon.

Two years ago, Canalta signed on as a major sponsor of the Saskatchewan Junior Hockey League. This year is the second for which the Canalta Cup will be awarded to the league champion. â&#x20AC;&#x153;We signed a 10- year agreement to the tune of $600,000,â&#x20AC;? said Gary HoďŹ&#x20AC;ert, regional vicepresident for Canalta.

HoďŹ&#x20AC;ert is based in Regina, while their head oďŹ&#x192;ce is in Drumheller.

In the 2012 championship, Humboldt beat Weyburn. It was ďŹ tting, since both towns have Canalta Hotels.

As for the oilpatch, he said, â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s very impor-

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A30

PIPELINE NEWS February 2013

More workers means more kids on the ice Weyburn Minor Hockey has seen a lot of growth in recent years due to growth in the oilpatch. The iniĆ&#x;aĆ&#x;on division, for instance, has nearly doubled in size. Ice Ć&#x;me pressures are huge. Here, the midget AAA Southern Range Gold Wings start pracĆ&#x;ce at 3 p.m., when kids are usually in school. All the players had their class schedules arranged to have a spare in the ÄŽnal period.

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Weyburn â&#x20AC;&#x201C; The growth of the oilpatch in Weyburn has had a direct impact on its minor hockey program.

Michael Tyhy, president of Weyburn Minor Hockey, said there are now 47 teams, including boys and girls, from four and under to midget AAA. As an example, he said when his own son started in initiation (age six), there were four teams, and that had been the standard for many years. Now his son is 10, and the initiation division has grown substantially. â&#x20AC;&#x153;Now thereâ&#x20AC;&#x2122;s seven teams,â&#x20AC;? he said. â&#x20AC;&#x153;There were 48 kids when he was six, now there are 79. Itâ&#x20AC;&#x2122;s pretty much doubled.â&#x20AC;? â&#x20AC;&#x153;Families are coming in for work. The pressure on ice time is huge. Weâ&#x20AC;&#x2122;re envious of Estevan, not only for its fancy new rink, but that they have three of them.â&#x20AC;? â&#x20AC;&#x153;I came from Estevan to Weyburn in 2002. This place has grown and grown and grown,â&#x20AC;? Tyhy said.

There are now close to 700 kids in minor hockey in Weyburn.

A substantial number of their parents, as well as their coaches, work in the patch directly, or in related businesses.

The oilpach has also stepped up to sponsor many of the teams, in addition to the traditional car and equipment dealers you might ďŹ nd in other communities. â&#x20AC;&#x153;Theyâ&#x20AC;&#x2122;re a major sponsor of quite a few things,â&#x20AC;? Tyhy said. â&#x20AC;&#x153;Our atomTtier 1 team is the Panther Drilling Wings. Our provincial team in peewee is the Crescent Point Energy Wings, and our bantam AA team is also Crescent Point Wings. â&#x20AC;&#x153;The midget AA team is the PetroBakken wings.â&#x20AC;?

With sponsorships, he noted the companies give a certain amount to each teams. Some of the funding goes to minor hockey, paying for things as jerseys, and the balance goes to the team, paying for travel, ice time, clothing, and general expenses.

So while other communities might have those aforementioned equipment dealers, he noted, â&#x20AC;&#x153;The patch is a huge beneďŹ t to us, over and above.â&#x20AC;?

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PIPELINE NEWS

SECTION B February 2013

The Estevan Bruins team name sponsor, CanElson Drilling, is prominent behind the net in Spectra Place.

How they became the CanElson Drilling Estevan Bruins

By Brian Zinchuk Estevan – It’s a Friday, and it’s game night at Estevan’s Spectra Place, the recently built new arena at the heart of southeast Saskatchewan’s oilpatch.

Taking to the ice are the junior A Estevan Bruins, facing off against the Melville Millionaires.

Except there’s one difference. The proper name of the home team is the CanElson Drilling Estevan Bruins.

In 2009, the junior-A team was the first in the Saskatchewan Junior Hockey League to sell its naming rights, becoming the Eagle Drilling Estevan Bruins.

In January 2011, CanElson Drilling completed its purchase of Carlyle-based Eagle Drilling Services Ltd. The new company would go on to carry out Eagle Drilling’s plan, and for the next two seasons, the team would be known as the CanElson Drilling Estevan Bruins.

The local media have bought into the sponsored name in a big way. It’s frequently heard on the lo-

cal radio stations, and appears in print in the local papers. Walking into the arena the green CanElson logo is prominent on the printed posters taped to the glass doors.

The whole idea for a naming-rights sponsorship came about several years ago when Karry Biette was coach and general manager of the team.

Biette was one of the few coaches who also had a full-time job outside of coaching, and that job was in the oilpatch working with Canadian Advanced ESP. Biette was good friends with Eagle Drilling general manager and founder Derrick Big Eagle, a company that made great efforts to be a community supporter.

Big Eagle is now president and CEO of junior oil producer Cheveyo Energy Ltd., having sold his interests in Eagle Drilling to CanElson in 2011.

He stayed on with the company for a time before moving on.

Reached by phone while on his way to Calgary, Big Eagle said, “Karry Biette, the coach at the time,

and I were good friends. We were chatting about sponsorship and that we would take it to a new level and do with naming rights.

At the time, the team was in a tight spot financially, according to Becky Tait, operations manager for the Bruins.

“The reason it was attractive to Eagle Drilling at the time was because we were drawing from all the communities in the area for workers on our drilling rigs. That’s the same sort of idea of what the Estevan Bruins hockey club does. They draw from all the surrounding towns in the area for their hockey team. I thought, for sure, there would be some players on the team that would have family links or friendship links to the workers, so I thought it would go hand in hand. It would be a great spot to do some advertising. The Bruins have a good following of people, and we thought that would be a great spot to hang the Eagle Drilling name.” ɸ Page B2

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PIPELINE NEWS February 2013 2012

Rink is plastered with logos ɺ Page B1 He noted it was one of the first times in Canada a junior team had taken on such a naming rights sponsorship.

Asked if they saw a lot of benefit, Big Eagle responded, “Oh, absolutely. The people knew we were grounded in the area, and we were very community-supportive. That’s what we wanted to be known as, and I think we followed through very well.”

While selling naming rights hasn’t taken off in the SJHL, he noted it has become more common in the levels below it. “We were hoping it would have a domino effect like that, to support the teams a little more, a little better.”

At Spectra Place, it’s hard to not notice the sponsorships blanketing the place.

Oilpatch businesses and individuals were strong supporters of the

project, from providing auction items (such as a pumpjack) to sponsorship supper tables (where the pumpjack was purchased) to seat purchases.

A glance around the facility quickly garners many names. Canyon Technical Services can be seen on the smocks of those selling 50/50 tickets, as well as on the tickets themselves.

Ringing the top of the arena are boxes with signs above them, listing companies like Crescent Point, L&C Trucking, Lonestar Directional, Frontier Inspection, Rocket Sales & Rentals and the like.

The rink boards include Penn West Exploration, Packers Plus, Grimes Well Servicing, Kramer Caterpillar, T. Bird Oil, Baker Hughes and Weyburn Electric, as a partial list.

If one looks up to the roof rafters, again there are a plethora of logos, including Es-

Hudson Morrison, No. 9 of the CanElson Drilling Estevan Bruins, takes Adam Dibella of the Melville Millionaires to the boards.

tevan Meter, Spartan Controls, McGillicky Oilfield, GMR Electric Motors and Allied Cathodic Services.

On the ice surface itself, one sees Supreme Oilfield Construc-

tion – a Flint Company, Renegade Petroleum, HG Pumping Units and Custom Trucks.

Indeed, there are so many logos throughout the building, we must apologize for all

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we have missed. If one gets dizzy from trying to count them all, they can always have a cold one to recuperate at the Crescent Point Energy Lounge.

Part and parcel with all this are prominent displays for CanElson Drilling, part of the sponsorship package.

Their logo is seen directly behind both nets, ensuring their likely inclusion in action shots taken for the newspa-

per. It’s also on the ice surface. As the teams take to the ice, the logo’s image is projected on the darkened ice surface.

On game day, Mike “Cannon” Smith, vice president and general manager for CanElson in Saskatchewan, stopped by a friend’s skybox before heading to their own. That friend, Chad Froese, has a son on the ice, rightwinger Tanner Froese. ɸ Page B3

THE PROBLEM

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PIPELINE NEWS February 2013 ɺ Page B2 CanElson shares a skybox with Estevan’s Power Dodge, owned by Trevor Knibbs. The skybox was not included in the sponsoring agreement, but rather something the company paid for separately.

In the skybox, Smith was joined by long-time friend Marc Dumaine, owner of Magnaflo Corp.

Dumaine and Smith both grew up at Storthoaks.

Dumaine’s manufacturing outfit builds equipment for CanElson. But more importantly on this day, Dumaine’s son, Brett, is on the ice, playing for the Bruins. He joined the team this past fall, after showing up to training camp and making the team despite not being scouted.

Dumaine and Smith are close. “I have five brothers, Cannon and Killer,” Dumaine said, referring to Mike Smith and his brother Derrick Smith, who works for Ensign Drilling. Dumaine’s brother, Trent, used to play for the Bruins as well. The ties to the team are close, indeed.

“We took over naming rights when we bought Eagle Drilling,” Smith said. “We signed a two-year contract. This is the second year of the contract.

“It’s good exposure for the company. Besides the exposure, we like to be involved in the communities we work in. They’re the closest team. Estevan is situated in the oilpatch.”

Asked if CanElson would be continuing with the naming sponsorship, he said, “Another year? I would like to. I have to convince some other guys.”

Smith himself plays twice a week in a rec league with the Carlyle Cowboys. He’s played all his life.

“My dad’s a hockey fanatic. He’s pretty proud we did it,” Smith said, referring to the naming sponsorship. “Two cousins and my brother-in-law played for the Estevan Bruins.”

In addition to all the other exposure, the team plays one home game in Carlyle each year. This past year, it was held in December. Poor weather meant for a disappointing turnout, with under 200 people.

The year before, it was closer to 450.

Asked the big question about such a prominent sponsorship, why? Smith responded, “It’s the exposure and being involved in the community. That’s what it is for us.

“I don’t know if there’s any way to measure it.”

Pointing to a number of the other sponsorships on the boards and ice, Smith noted a lot of that was directed at supporting the new rink. Their sponsorship is for the team itself.

So while he doesn’t know if they’ve drilled more wells as a result, 13 of the company’s 14 rigs are working this winter, a “pretty phenomenal number,” he said, “for the year we’ve been having.”

Smith pointed out that with full pipelines, producers had difficulty shipping oil. As for 2013, CanElson is viewing it as similar to 2012 – no one knows for sure how it is going to go beyond the first quarter.

One of last year’s Bruins roughnecked for CanElson for the summer, but didn’t see a lot of action since that rig was down quite a bit.

Skyboxes are key to nearly all new arenas, baseball diamonds and football fields. It’s a place where corporate skybox renters can take their clientele.

In CanElson’s case, he noted their position is nicely placed for concerts. It also overlooks the far end goal nicely. And when mixed martial arts events are held, it has a great view. “When Derrick was still working with us, he brought some customers in to (the fights).

Does CanElson use its box to entertain clients?

“We try to, yup – hockey, concerts, MMA fights.

Some business is conducted. That’s why we bring them.”

Some guests are from oil companies, others are suppliers, like Dumaine’s MagnaFab. Smith will bring in rig managers as well.

Estevan isn’t the only place where CanElson backs a team. “We sponsor the Virden Oil Kings as well on their 50/50, like Canyon does here,” Smith

B3

said.

“The radio coverage is big,” he said.

Does having a new rink in Estevan help?

“I think so. I think it makes a difference to a lot of the guys who sponsored. This is a phenomenal rink,” Smith said.

Chad Saxon, Bruins vice-president, said, “It’s very important. There’s the financial side, and they’re a good supporter in other avenues. They’re a great group of people to be involved with. It’s nice to have them as part of the Bruins family.”

BreƩ Dumaine, No. 5 with the CanElson Drilling Estevan Bruins, is part of a family that has strong Ɵes to hockey and the oilpatch.

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PIPELINE NEWS February 2013

Cenovus tops up fundraising drive for Triple C Centre with $250,000 Cenovus makes its largest donation in Saskatchewan to date Â&#x201E; By Brian Zinchuk Weyburn â&#x20AC;&#x201C; Just prior to Christmas, Cenovus Energy stepped up in a big way, providing a major boost to the fundraising eďŹ&#x20AC;orts for Weyburnâ&#x20AC;&#x2122;s Triple C Centre.

Cenovus provided $250,000 on Dec. 18 for the addition to the Weyburn Comprehensive School, bringing the Triple C Centre Corp (formerly Weyburn & District Performing Arts Society) close to its $3.5 million fundraising goal.

The entire project will cost $6.7 million Triple C stands for community, culture and convention, the three things that will be featured in the new facility.

South East Cornerstone Public School Division No. 209 and the Province of Saskatchewan

Learning Ministry, as part of future changes to the public and separate school systems in Weyburn, are renovating the WCS to accommodate more students. Renovations will include a new building for South East Regional College and a new gymnasium for middle year students who will attend WCS in the near future. The facility includes a theatre and convention space for community usage.

Part of the renovations will include a commercial kitchen to support the convention centre and WCS is planning to add commercial cooking to their curriculum.

The cafetorium could no longer meet the needs of the school and community, and will be demolished as part of the project. The facility will include a gymnasium with retractable stadium seats, with seating for around 900.

â&#x20AC;&#x153;Cenovus is pleased to support the Triple C Centre,â&#x20AC;? said Darcy Cretin, Cenovus operations superintendent. â&#x20AC;&#x153;We strive to be a good neighbour and support the communities where we live and work. The Centre has received tremendous support from many families, individuals and businesses, and weâ&#x20AC;&#x2122;re excited to be a part of that.â&#x20AC;?

He noted that arts and culture are big pillars of the community for both Weyburn and Saskatchewan. â&#x20AC;&#x153;This is the single largest donation Cenovus has ever made in Saskatchewan,â&#x20AC;? said Twila Walkeden, Cenovus spokesperson. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s quite signiďŹ cant.â&#x20AC;?

The donation will cover two large LCD screens on either side of the stage, each worth $50,000, as well as a new score clock.

Cenovus has 90 direct employees in the area, and between 300 and 500 subcontractors working for them, depending on the time of the year. At times they can have up to 200 people working at their Goodwater plant.

The donation has been in negotiations for four to ďŹ ve years. Walkeden noted the technology portion peaked their interest, saying, â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re a company that bases ourselves on technology.

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Cenovus focuses on league support in hockey When it comes to supporting hockey, Cenovus has its own approach. â&#x20AC;&#x153;We try to focus on leagues support as opposed to teams. Weâ&#x20AC;&#x2122;re not on the backs of jerseys, but instead support the whole league,â&#x20AC;? said Twila Walkeden, Cenovus spokesperson.

Cenovus supports hockey in Bienfait, Shaunavon, Estevan and Weyburn.

As for how much each league gets, she said â&#x20AC;&#x153;Thereâ&#x20AC;&#x2122;s a formula based on the number of kids who participate.â&#x20AC;?

Similar calculations are done for supporting soccer, minor ball, synchronized swimming and gymnastics.

In Weyburn, for instance, some of the money goes towards supporting Weyburn Minor Hockeyâ&#x20AC;&#x2122;s website. Parents rely on it to download schedules to their mobile phones, she said.

Members of the Weyburn Red Wings read to elementary school students as part of a reading program sponsored by Cenovus.

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Another area of backing is the local junior A team. â&#x20AC;&#x153;We support the Weyburn Red Wings. We support them in taking a reading program to Weyburn elementary schools,â&#x20AC;? Walkeden said, adding it was expanded to Midale last winter. â&#x20AC;&#x153;The players go to all these schools and read to the students. A series of books is left behind at each school for their library. Itâ&#x20AC;&#x2122;s like a legacy,â&#x20AC;? she said.

This school year wraps up the three-year program. â&#x20AC;&#x153;Theyâ&#x20AC;&#x2122;re very much role models to these kids,â&#x20AC;? she said. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s a great partnership that we have.â&#x20AC;?

When it comes to sponsorships, she said, â&#x20AC;&#x153;Buying a (rink) board is nice, but weâ&#x20AC;&#x2122;re looking for something with a meaning behind it. We evaluate every opportunity on its own merits.â&#x20AC;?

Walkeden noted Cenovus belongs to Imagine Canada, an organization whose members designate one per cent of pre-tax proďŹ ts to charitable projects. â&#x20AC;&#x153;Few oil companies do that,â&#x20AC;? she said.

That money is split amongst communities in Alberta and Saskatchewan, with much of it going to multi-year commitments. Cenovus focues on learning, safety and wellbeing, and sustainable communities.

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PIPELINE NEWS February 2013

Weir says loopholes should be closed on royalties and incentives

By Brian Zinchuk Pipeline News asked each of the four Saskatchewan New Democratic Party Leadership candidate a bank of questions about their energy policy.

The official opposition’s new leader will be chosen March 9. These are the responses from Regina economist Erin Weir.

Erin Weir.

Photo by Brian Zinchuk

Pipeline News: Where are you from and what do you do?

What riding do you represent or will you be running in?

Erin Weir: I’m from Regina. Until I

got in the leadership race, I was working as an econonomist for the United Steel Workers.

I’ve worked before that as an economist with the International Trade Union Federation, the global umbrella group of national labour centrals, and the Canadian Labour Congress.

I’ve got a master of arts and master of public administration. I did my bachelor's degree at the University of Regina. I graduated in 2002.

I currently don’t represent a riding. I was the federal NDP candidate in Wascana in 2004. In terms of what constituency I would want to run in, the boundaries are being redistributed. I would envision running in Regina.

PN: Do you have any energy sector experience?

EW: I’ve taken a great interest in Saskatchewan’s oil and gas sector. For about a decade I’ve researched extensively the province’s oil and gas royalties, going back to a paper that was published by the Saskatchewan insitute of Public Policy in 2002 entitled Saskatchewan’s Oil and Gas Royalties, a Critical Appraisal.

Since then I’ve written many op-eds and letters to the editor.

PN: What is your plan for Saskatchewan’s energy policy?

EW: There are two different aspects to it – the oil and gas royalties, and electricity generation. ɸ Page B7

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PIPELINE NEWS February 2013 Éş Page B6 My plan for the oil industry would be to collect a better return for the people of the province on the resource that we own. Currently there are a lot of loopholes in the royalty structure that allow companies to extract millions of barrels of oil without paying anything approaching the standard Crown royalty rate. One of the main examples would be the incentives for horizontal drilling, which basically allow companies to pay a royalty of just 2.5 per cent on the ďŹ rst 30,000 barrels extracted whenever you do a horizontal well. These incentives began in the 1980s when horizontal drilling was a new technology and the provincial government wanted to encourage its development. Now it is a wellestablished technology.

Most of the wells drilled in Saskatchewan are horizontal. The incentives are no longer required, and it represents a large drain on the provincial revenues.

I think that technology has become much more economical.

Under the corporate tax system, companies can certainly write oďŹ&#x20AC; their investments, but does it makes sense for the province to give away that many barrels of oil at a notional royalty rate?

The Saskatchewan Resource Credit allows companies to subtract one per cent of the total value of the resources they extract from the royalties. Itâ&#x20AC;&#x2122;s not tied to investment or job creation. Itâ&#x20AC;&#x2122;s just a straight giveaway, and something I would end.

Itâ&#x20AC;&#x2122;s a little more complicated with oil and gas. There are some wells drilled between

1998 and 2002. The credit is actually 2.5 per cent, but thereâ&#x20AC;&#x2122;s a deduction from the resources surcharge.

Saskatchewan is the largest emitter of greenhouse gas per capita compared to any other province. Part of that is we have a large oil and gas industry.

But another part is that we generate most of our electricity through burning coal. The current provincial government has sunk a lot of money to try to develop clean coal technology. I hope that that is successful. I hope we can ďŹ nd ways of burning coal that donâ&#x20AC;&#x2122;t emit greenhouse gas, but so far, clean coal has remained an unproven possibility. We canâ&#x20AC;&#x2122;t use that as excuse to keep burning dirty coal. We need to have a plan to retire coal plants as they wear out and replace them with conservation and renewable power.

The province should invest in hydroelectricity, for example, wind, and solar power. Solar energy is of particular interest for this part of the province because it has so much sunlight in comparison to almost anywhere else in the world.

Thereâ&#x20AC;&#x2122;s less hydro potential in Saskatchewan than Manitoba. But SaskPower has identiďŹ ed two opportunities. One is sites where run-of-the-river can be established. When you add them all up, it comes out to a signiďŹ cant number of megawatts. The even more signiďŹ cant opportunity would be the rapids on the Churchill River.

This was studied by the Blakeney government in the 1970s. It would be possible to have a large hydroelectric dam there with a reservoir.

It wasnâ&#x20AC;&#x2122;t pursued at the

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time, I think, because no one new about climate change at the time, so it was easier to keep burning coal. Itâ&#x20AC;&#x2122;s certainly a project SaskPower has determined would be quite feasible and could be a component of replacing coal.

PN: Will you be doing anything with regards to royalties or incentives?

EW: My proposal is not to change existing royalty rates, but rather to remove incentives to ensure companies actually pay the existing royalty rates. One example would be horizontal drilling. Another would be the special deal for enhanced oil recovery.

In addition to that type of EOR (the use of CO2 EOR by Cenovus and Husky), there will also be increased use of thermal methods for recovering heaby oil.

The current regime for EOR is essentially the company pays almost no royalties until the entire costs of the project are paid oďŹ&#x20AC;. Itâ&#x20AC;&#x2122;s quite a signiďŹ cant giveaway.

I think the province should try to collect the standard Crown royalty rate.

PN: Former leader Dwain Lingenfelter expressed a desire for the province of Saskatchewan to get back into the oil and gas industries a la SaskOil, especially with regards to gas production. What is your take on this?

EW: My priority is to collect the best possible return for the people of the province. The way I would propose to do that is to close the loopholes

in the royalty structure so that existing private companies pay their return to the province of Saskatchewan.

Itâ&#x20AC;&#x2122;s not something I would propose, but itâ&#x20AC;&#x2122;s not something I would rule out. The former premier, Allan Blakeney, hired me to research the oil and gas chapter of his memoires. In doing that, I gained an appreciation of the value of having a Crown corporation in the sector, to give the government a window in the industry and a better negotiating position vis-a-vis other companies. Itâ&#x20AC;&#x2122;s not an end onto itself, but it is a policy tool that could be used to ensure the best possible return for the people of the province.

PN: In the ďŹ rst

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nine months of 2012, Saskatchewan drilled all of nine natural gas wells, down from over 2,700 ďŹ ve years before.

What, if anything can or should the province do about these low numbers?

EW: I think the cause of those low numbers is the low price of natural gas. I donâ&#x20AC;&#x2122;t think thereâ&#x20AC;&#x2122;s much the province can do about that.

To be clear, the royalty changes Iâ&#x20AC;&#x2122;m proposing would be for oil. I would certainly take the point that the natural gas industry isnâ&#x20AC;&#x2122;t in the position to pay signiďŹ cantly more royalties right now, given the prices are so depressed. Iâ&#x20AC;&#x2122;m not sure thereâ&#x20AC;&#x2122;s much the province can do.

PN: What is your take on federal NDP

leader Thomas Mulcairâ&#x20AC;&#x2122;s assertions that Western Canadaâ&#x20AC;&#x2122;s strong energy sector has resulted in a case of â&#x20AC;&#x153;Dutch disease.â&#x20AC;?

What impact does this have on Saskatchewan, if any, and is there anything you would do about it?

EW: I think what Tom Mulcair has observed is that the resource boom has driven up the exchange rate, and the higher exchange rate has hurt many other sectors of Canadaâ&#x20AC;&#x2122;s economy, particularly manufacturing. I think Saskatchewan has lost about 5,000 manufacturing jobs since the Sask. Party took power.

Clearly the higher exchange rate has been a major cause of those job losses. ɸ Page B8

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PIPELINE NEWS February 2013

Priority to collect the best return for the province Éş Page B7 You have the closures of the pulp mill, and a lot of saw mills in northern Saskatchewan. You have a lot of meat packing plants that have closed, or the one in North Battleford that would soon close.

Thereâ&#x20AC;&#x2122;s lots of factors that contribute to the overall level of manufacturing employment, thatâ&#x20AC;&#x2122;s true. I donâ&#x20AC;&#x2122;t think Thom Muclair ever said the only thing thatâ&#x20AC;&#x2122;s driving up the dollar is the resource boom, or that the only thing hurting manufacturing or other industries is the exchange rate. He said the resource boom is one of the main factors. I donâ&#x20AC;&#x2122;t think anyone can deny that. Another point he made was the high exchange rate

does hurt other exporting industries. I donâ&#x20AC;&#x2122;t think anyone would deny that.

I think part of the reason foreign funds are ďŹ&#x201A;owing into our resource sector and driving up our exchange rate is the provincial governments are giving away the resources. Of course foreign investors are tripping over each other to get into that industry.

If the government of Saskatchewan were to collect a better royalty return, that would not only mean more revenue for the people of Saskatchewan, it would moderate that ďŹ&#x201A;ow of foreign funds, and help to temper the exchange rate. I think provincial policy can actually cure Dutch disease.

PN: Now that Cenovus has bought Oilsands Questâ&#x20AC;&#x2122;s assets, Saskatchewan oilsands development

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seems much more likely. What is your stand on this?

EW: Iâ&#x20AC;&#x2122;m not that familiar with it.

I think weâ&#x20AC;&#x2122;ve seen some real problems with oilsands extraction in Alberta. Itâ&#x20AC;&#x2122;s a mix of huge amount of greenhouse gas, and the Alberta government hasnâ&#x20AC;&#x2122;t collected nearly as good a royalty return as it should have. In Saskatchewan, we want to get it right. We want to make sure the development would only proceed in an environmentally responsible way. That would probably require some sort of carbon capture and storage technology so it didnâ&#x20AC;&#x2122;t add to greenhouse gas emissions.

It (CCS) would have to be proven to proceed with it.

Another issue is coming up with an oilsands royalty regime in Saskatchewan that reďŹ&#x201A;ects an appropriate return for the province. The province wouldnâ&#x20AC;&#x2122;t get much with the existing deal for enhanced oil recovery, for example.

Iâ&#x20AC;&#x2122;m not in favour of Saskatchewan exploiting the oilsands in the same way Alberta has. But if we can ďŹ nd a way to do it that protects the environment, collects a good return for the people of the province, that may well be worth pursuing.

PN: Where do you stand on the proposed Keystone XL and Northern Gateway pipelines?

EW: Itâ&#x20AC;&#x2122;s not really a provincial issue. Ultimately the approval is up

to the federal and American governments. My sense is the Keystone XL pipeline is extremely likely to proceed.

I expect the American government will approve it.

It seems the Northern Gateway pipeline is much less likely to go ahead. There are very signiďŹ cant environment and Aboriginal treaty right issues in British Columbia, especially.

There are some other potential solutions. An east-west pipeline â&#x20AC;&#x201C; Enbridge has a proposal in that area.

Another is the possibility of upgrading and reďŹ ning more of the resources in the province.

Part of whatâ&#x20AC;&#x2122;s driven down the price of heavy oil is the driving of a huge amount (of oil) into a pipeline to go to other reďŹ neries. More reďŹ ning in Saskatchewan could reduce that bottleneck.

PN: All four candidates represent a substantial generational shift for the Saskatchewan NDP. What does that mean from your perspective?

EW The big challenge facing the Saskatchewan NDP is to renew and rebuild the party. Thereâ&#x20AC;&#x2122;s certainly an appetite for new voices and fresh perspectives. I think the leadership race is quite positive from that point of view. But ultimately, I donâ&#x20AC;&#x2122;t think the age of the candidate should be a main consideration.

Editorâ&#x20AC;&#x2122;s note: this interview has been edited for length.

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PIPELINE NEWS February 2013

B9

Is it time to hang them up?

Estevan â&#x20AC;&#x201C; Aren Miller has laced up his skates as a goalie with the Detroit Red Wings, but he might have to hang them up soon because of the advent of some younger players.

Those younger players would be his kids, who are advancing to the age where more hockey-related travel is on the horizon. For a family that is at the rink almost every day of the week, something may have to give.

Manning blue line entrance to the bench, Miller kept a sharp eye on his son Jackson in net. He, like is father, is a goaltender. The apple didnâ&#x20AC;&#x2122;t roll too far from the tree.

Jackson plays for the Novice Estevan Flames, while his dad is one of the ďŹ ve coaches. On Jan. 9, they were playing at the new Spectra Place in Estevan. â&#x20AC;&#x153;I played junior in Spokane, and got drafted by Detroit in â&#x20AC;&#x2122;96. I played in their farm system â&#x20AC;&#x201C; Adirondack, Cincinatti, Toledo,â&#x20AC;? Aren said.

As for the Wings themselves, he said, â&#x20AC;&#x153;I backed up six games and was the third goalie for two years in the playoďŹ&#x20AC;s.

In 1999-2000, the Red Wings lost out in second round to Colorado. The following year, Los Angeles took them out in the ďŹ rst round.

After several years playing hockey, but not making it to the NHL full-bore, it was time to make a decision. â&#x20AC;&#x153;A job came up here. We wanted to have a family here. Do you want to go through the rigmarole with the pregnancy in the U.S., or come home?â&#x20AC;?

Good paying jobs are attractive, he noted. â&#x20AC;&#x153;Youâ&#x20AC;&#x2122;re making more money coming home than playing pro. Guys go down, have some fun, give it a kick at the cat,â&#x20AC;? he said. But thereâ&#x20AC;&#x2122;s always younger players, and it seems younger players have a better chance at getting in. â&#x20AC;&#x153;There that decision time for every guy. Do you keep playing and try to go school or ďŹ nd a career in your thirties, or in your twenties?â&#x20AC;?

Aren grew up in the town of Alemeda. â&#x20AC;&#x153;I was a townboy. Dad worked in the oilďŹ eld, too. He sells chemical for Prairie Petro-Chem.â&#x20AC;?

Aren started working with Baker Hughes in 2005, and is a drill bit salesman. That in itself can be a challenge, because bit men can be called out at all hours of the day or night. Itâ&#x20AC;&#x2122;s even more of a challenge because besides Jackson, he and his wife Brandy have a 6-year-old son, Ryder, in initiation hockey.

On top of that, he noted, â&#x20AC;&#x153;I still play senior hockey in the Bix 6 League with Oxbow.â&#x20AC;?

As a result, the Miller family will frequently ďŹ nd itself at the rink six nights a week. Arenâ&#x20AC;&#x2122;s games are Tuesdays, Fridays or Saturdays, with the odd Sunday game. â&#x20AC;&#x153;You try to balance it as best you can. On days you know what got to be done in the ďŹ eld, you get up and go out early. With our job, we kind of know the day before.â&#x20AC;?

Itâ&#x20AC;&#x2122;s coming to be a busy time for bit salesmen right now, he noted. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;ve got almost 70 rigs working in Saskatchewan and Manitoba,â&#x20AC;? he said, referring to the region he covers. Thatâ&#x20AC;&#x2122;s a total rig count, not exclusive to Baker Hughes.

So far, all the kidsâ&#x20AC;&#x2122; games have been within a short drive of Estevan, to places like Weyburn and Carlyle. But that may change next year. â&#x20AC;&#x153;It could be the last year for me playing once he gets into atom. Thereâ&#x20AC;&#x2122;s a lot more travel,â&#x20AC;? Aren said.

Asked how he would handle not playing the game heâ&#x20AC;&#x2122;s played his whole life, he said. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;d be tough. Iâ&#x20AC;&#x2122;m competitive. Itâ&#x20AC;&#x2122;d deďŹ nitely be a change.â&#x20AC;?

But there was solace in his voice as he added, â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s fun watching these guys play and learn.â&#x20AC;?

Aren Miller unlaces his son Jacksonâ&#x20AC;&#x2122;s skates aĹ&#x152;er a game. Both are netminders.

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B10

PIPELINE NEWS February 2013

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PIPELINE NEWS February 2013

B11

You want to work on the rigs? Pick up a stick

Trent played for the SJHL Flin Flon bombers for two years, and then Įnished his hockey career in North BaƩleford. These days he can be found coaching the Redvers Rockets in the Big 6 Hockey League.

Storthoaks, Estevan – There’s a bit of a joke with people from Storthoaks. If you wanted to work with Big Sky Drilling of Carnduff, you had to play for the Storthoaks Wings. Or was it the other way around? No matter. A lot of rig hands from Storthoaks have done both in years past.

The Dumaine family is just one. With six boys, there was lots of time spent at the rink. And all have at one time worked in the oilpatch, or still do.

Jeff Dumaine owns a vac wagon and tractor, and works with The Competition. Chad Dumaine is a motorman with Ensign Drilling (formerly Big Sky). Marc Dumaine owns and operates the Magnaflo Corp group of companies, including Magna Fab in Redvers.

These Boys were known to be the “tough guys” for the Storthoaks Wings back in the late 80’s and early 90’s. They are the Dumaine brothers of Storthoaks. From leŌ to right are Cal, Garry, Marc, Trent and Jeī. Marc’s son BreƩ now plays with the Estevan Bruins.

Photo submiƩed

Cal Dumaine is a drilling consultant. Garry Dumaine took over the family farm, but has also worked rigs in the past. Trent Dumaine worked rigs as well, and now runs the Redvers shop for Magna Fab and is a partner in the rentals division.

“If you wanted to play on the Storthoaks Wings, you had to work on a rig,” Trent smiled.

“The last year, we all played except for Chad,” Marc said.

It would drive one of the owners of Big Sky, Rick Hayward, nuts, because he would be short workers on game day. “But he always came to the games,” Marc said.

Trent played for the SJHL Flin Flon bombers for two years, and then finished his hockey career in North Battleford. These days he can be

found coaching the Redvers Rockets in the Big 6 Hockey League.

Marc’s son Brett plays both forward and defence now for the junior-A Estevan Bruins. It’s his first year playing junior-A, after playing AA and AAA in Calgary. He had a remarkable recovery from a broken neck two years ago after having been hit from behind.

“He went through the halo, the whole nine yards,” Marc said.

Brett has been mentored by Bob Wilkie, a former NHLer who also broke his back and has since recovered.

Brett, like the others, has had some work in the patch as well, having spent summers and weekends working in the family business.

B12

PIPELINE NEWS February 2013

Southeast Environmental and Safety Seminar coming March 20

Dr. Louis Hugo FrancescuĆŤ gave an animated presentaĆ&#x;on called The Humanity of it All, Exposing Love, Life, Work and Stupidity last year. An emergency department physician, his talk varied from the types of food to eat to teenagers texĆ&#x;ng while driving â&#x20AC;&#x201C; to someone in the same car, no less. FrancescuĆŤ was a keynote speaker at the 2012 Southeast Environmental and Safety Seminar (SEESS). File photo

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Estevan â&#x20AC;&#x201C; The 17th annual Southeast Environmental and Safety Seminar (SEESS) will be held at the Energy Training Institute in Estevan on March 20.

This is the second year it is being held at SETI. Usually it alternates between Estevan and Weyburn, but since thereâ&#x20AC;&#x2122;s work being done on the Weyburn venue, the seminar will repeat at the Estevan facility.

The one-day event will have numerous speakers focusing on environment and safety.

There are two keynote speakers. Sylvia Yaeger is an occupational therapist who has developed a proactive approach to preventing stress and workplace injuries. Mike Harnett is president and director of operations of WorkSMART Ergonomics Ltd., a consulting ďŹ rm that specializes in industrial, ďŹ eld and oďŹ&#x192;ce ergonomics, injury prevention training, aging workforce issues, shiftwork and fatigue management.

Tim Kalynchuk will speak about Workers Compensation Board statistics.

Todd Hann of the Saskatchewan Ministry of Energy and Resources will address venting and ďŹ&#x201A;aring.

Jennifer Neilson of J&V Neilson & Assoc., will discuss loading rates for calcium nitrate and gypsum for reclamation.

For an eye in the sky, Greg Lewis of Matrix Environmental in Weyburn will tackle unmanned aerial vehicles and on-demand imagery.

Dave Harazny, spokesperson for SETI and its parent organization, Southeast Regional College, said, â&#x20AC;&#x153;Donâ&#x20AC;&#x2122;t miss out. Itâ&#x20AC;&#x2122;s an excellent learning opportunity. Weâ&#x20AC;&#x2122;re bringing in very knowledgeable speakers in their ďŹ elds.â&#x20AC;?

In 2012 they were close to full, with around 160 attendees.

Registration is available online at www.seess. ca.

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PIPELINE NEWS February 2013

B13

Maybe the Oilers will take him?

Kersey Hollingshead, 7, is preĆŠy proud of his dad, Kris, a millwright mechanic with Enbridge. Like Kersey and his sister Presley, Kris also plays hockey.

Enbridge millwright mechanic Kris Hollingshead is one of the coaches of the novice Estevan Flames.

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Â&#x201E; By Brian Zinchuk Estevan â&#x20AC;&#x201C; Kersey Hollingshead, 7, is pretty proud of his dad, Kris, who coaches his novice hockey team, the Estevan Flames. Thatâ&#x20AC;&#x2122;s good, because the little boy and his family essentially live at the rink.

Kersey spoke to Pipeline News after a game on the big ice as Estevanâ&#x20AC;&#x2122;s Spectra Place, with his coach and father by his side. â&#x20AC;&#x153;I usually play left wing,â&#x20AC;? he said.

Asked what grade heâ&#x20AC;&#x2122;s in, he thought for a second, then responded, â&#x20AC;&#x153;Grade 2!â&#x20AC;?

He has one brother and one sister, both younger than he is. â&#x20AC;&#x153;My sister, Presley, sheâ&#x20AC;&#x2122;s four. She plays hockey,â&#x20AC;? he said.

Is she good? â&#x20AC;&#x153;Yes,â&#x20AC;? Kersey responded.

Regarding having his dad as a coach, Kersey said, â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s really important. He helps me a lot.â&#x20AC;?

Kersey plays hockey two or three times a week, he said.

As for what his dad does, he said, â&#x20AC;&#x153;Heâ&#x20AC;&#x2122;s at work sometimes with Enbridge.

He works on oil and pumps.â&#x20AC;?

Kris piped up, smiling, â&#x20AC;&#x153;Iâ&#x20AC;&#x2122;m a millwright mechanic.â&#x20AC;?

As for his mother, Loni, Kersey said, â&#x20AC;&#x153;Sheâ&#x20AC;&#x2122;s a teacher at my school.â&#x20AC;?

Kersey attends Spruce Ridge School in Estevan.

Did he score any goals this season?

Kersey said, â&#x20AC;&#x153;Two. Today I almost scored.â&#x20AC;?

Kris noted Kersey played defence the ďŹ rst half of the year.

Does his father play hockey too? â&#x20AC;&#x153;Yup,â&#x20AC;? Kersey said. â&#x20AC;&#x153;Rec hockey. He plays to(/(&75,& 02725 ',9 night.â&#x20AC;?

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B14

PIPELINE NEWS February 2013

Southern Range Gold Wings take to the ice early Tessa Wilson has been playing hockey since she was three.

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Weyburn â&#x20AC;&#x201C; At a time when most students are trying to stay awake during their last class of the day, these girls are on the ice, doing drills. The midget AAA Southern Range Gold Wings start practice at 3 p.m., with all the players having arranged to have a spare for the last period of the day.

This is the fourth year the team has carried the Southern Range moniker, sponsored by Southern Range Well Servicing of Weyburn.

Southern Range is owned by Ron Newett and Al Vilcu, both of whom have spent time on the ice. â&#x20AC;&#x153;I played a lot of hockey. Al played some,â&#x20AC;?

Newett said. My son played some AA and AAA hockey.â&#x20AC;?

As for how the sponsorship came about, New-

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Bailee Bourassa crosses the ice during a drill

ett said, â&#x20AC;&#x153;They phoned. I know one of the parents that had a daughter that was going to start playing with them, so we signed on.â&#x20AC;? â&#x20AC;&#x153;Every time they play, itâ&#x20AC;&#x2122;s on the radio, and we like to do things for the community. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s something local and helps the community,â&#x20AC;?

Newett said. They get calls from all over, asking for donations and sponsorships. In recent years, theyâ&#x20AC;&#x2122;ve tried to keep it close to home. â&#x20AC;&#x153;We like to focus on local, and help the local community if we can,â&#x20AC;? he said.

Makenzie Bauer, No. 5, is a left-winger from Richardson, Sask., near Regina. In her ninth year of hockey, sheâ&#x20AC;&#x2122;s billeted in Weyburn so she can play with the team. Sheâ&#x20AC;&#x2122;s a 45 minute drive from home. â&#x20AC;&#x153;I want to go to law school and play hockey,â&#x20AC;? said the 17-year-old.

Tessa Wilson, 16, has been playing since she was three. â&#x20AC;&#x153;I hope to play university â&#x20AC;&#x201C; maybe with the U of S,â&#x20AC;? she said.

From Mossbank, Wilson also billets in Weyburn.

She appreciates the sponsorship from Southern Range. â&#x20AC;&#x153;It pays for a lot of your things. Our sponsor bought us our track suits, and little things,â&#x20AC;? she said, adding having a sponsor is â&#x20AC;&#x153;really important.â&#x20AC;? ɸ Page B15

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PIPELINE NEWS February 2013

B15

Chad Kish, coach of the Southern Range Gold Wings, gives instrucĆ&#x;ons during a pracĆ&#x;ce.

Éş Page B14 Bauer and Makenzie are part of the two-thirds of the 17-player team that is not from the Weyburn area. Bailee Bourassa, on the other hand, is from Weyburn. She, too, said having a team sponsor was very important.

Head coach Chad Kishâ&#x20AC;&#x2122;s main gig is working as a lineman for SaskPower, but he also has is own business, Shield Power Corp.

In either job, most of his work is done in the oilpatch. â&#x20AC;&#x153;It keeps us extremely busy,â&#x20AC;? Kish said.

With a daughter, Jane, as a goalie on the team, that keeps him busy too. â&#x20AC;&#x153;Our ďŹ rst sponsor was Penta Completions.

For the last three years, going on four, it has been Southern Range,â&#x20AC;? he said of the name sponsor of the team. â&#x20AC;&#x153;For us, itâ&#x20AC;&#x2122;s ďŹ nancial. Itâ&#x20AC;&#x2122;s a substantial amount of money for our operations.â&#x20AC;?

There are a large number of other sponsors, many of which are oilďŹ eld-related, he explained. Most are businesses from Weyburn, but some are from Estevan. In total, the oilpatch account for 50 to 60 per cent of the teamâ&#x20AC;&#x2122;s sponsorship dollars. â&#x20AC;&#x153;It helps. You bet it

does. It pays for extras like windsuits. Theyâ&#x20AC;&#x2122;ve also done Christmas gifts in the past, over and above.â&#x20AC;?

Kish said, â&#x20AC;&#x153;Thatâ&#x20AC;&#x2122;s for them (Southern Range) for being our sponsor. For us, having a name sponsor, from this community, itâ&#x20AC;&#x2122;s very important for us. People care about the girls, and give back to the community.â&#x20AC;?

Midget AAA is the highest calibre of female hockey in the province outside of the university teams, he noted. This is the teamâ&#x20AC;&#x2122;s seventh year in operation.

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B16

PIPELINE NEWS February 2013

PIPELINE NEWS February 2013

B17

Rec league matchup Estevan â&#x20AC;&#x201C; At 10:15 p.m., when other guys are watching the CBC National, these guys are taking to the ice.

Itâ&#x20AC;&#x2122;s time to drop the puck between the Souris Valley Fighting Sioux and the Bert Baxter Transport Cougars in Estevanâ&#x20AC;&#x2122;s over-30 rec league.

In the Sioux locker room, thereâ&#x20AC;&#x2122;s some banter about the recent Harlem Globetrotters performance in Estevan.

The mood is jovial, as the men lace up.

Most of the players work in the oilpatch, which means attendance can be sporadic â&#x20AC;&#x201C; anywhere from ďŹ ve to 20 skaters on any given night.

Guy Lâ&#x20AC;&#x2122;Heureux, No. 8, is a tool hand with Weatherford. Like most, heâ&#x20AC;&#x2122;s played all his life. His daughter is eight and his son is three. Neither have taken to the ice yet, but of his son, Lâ&#x20AC;&#x2122;Heureux said, â&#x20AC;&#x153;Heâ&#x20AC;&#x2122;s got lots of mini sticks. â&#x20AC;&#x153;I played junior B. I played with the Bienfait Coalers two years ago. I played with them for four years.

He likes playing at Spectra Place, noting itâ&#x20AC;&#x2122;s a bit warmer than the often frigid Bienfait rink.

Doug Martens, 42-years-old and No. 26, is one of the owners of Estevan Meter, the company that bought a large number of the rafter signs at Spectra Place. â&#x20AC;&#x153;That worked out to be a good one, with good exposure,â&#x20AC;? he said.

Doug Martens, right, makes use of his elbow at just the right Ć&#x;me.

Warren Waldegger, leĹ&#x152;, is general manager of T. Bird Oil.

Day

Martens came back to hockey after a long hiatus. â&#x20AC;&#x153;I quit when I went away to Moose Jaw at 18. I started back a few years ago.

I started going to the gym, getting back into shape. â&#x20AC;&#x153;My boy (Kale) plays bantam. He was on the ice tonight.â&#x20AC;?

The family is at the rink three to four times a week. â&#x20AC;&#x153;I coached him for awhile. Itâ&#x20AC;&#x2122;s what got me back in,â&#x20AC;? Martens said.

The play is two 30-minute periods, with a brief intermission. â&#x20AC;&#x153;We only have the hour. Itâ&#x20AC;&#x2122;s fast and furious,â&#x20AC;? said Warren Waldegger, general manager of T. Bird Oil. Waldeggerâ&#x20AC;&#x2122;s pretty easy to spot on the ice. Heâ&#x20AC;&#x2122;s got a huge smile on his face the whole time. â&#x20AC;&#x153;No point of being out there if youâ&#x20AC;&#x2122;re not having fun,â&#x20AC;? he said.

The Sioux end up winning 9-5. With three minutes left, one of the Sioux said at the end of his shift, â&#x20AC;&#x153;Iâ&#x20AC;&#x2122;ve hit the wall.â&#x20AC;?

Another player says something about his kneecaps. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s good to get out with the guys.

We love the game of hockey, even if the NHL guys donâ&#x20AC;&#x2122;t,â&#x20AC;? said Lyle Odgers, who is in sales with Weatherford.

The evening is ďŹ nished oďŹ&#x20AC; with a visit to the Taphouse for a pizza and maybe a drink. It is, after all, beer-league hockey.

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Tyler McNabb of the Bert Baxter Transport Cougars, leĹ&#x152;, and Lyle Odgers of the Souris Valley FighĆ&#x;ng Sioux, face oÄŤ for a late night rec hockey game at Estevanâ&#x20AC;&#x2122;s Civic Centre on Jan. 10. A large number of the leagueâ&#x20AC;&#x2122;s players work in the oilÄŽeld. Odgers works with Weatherford.

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B18

PIPELINE NEWS February 2013

Sanjel cement stops surface casing vents Lloydminster – Members of the Lloydminster chapter of Society of Petroleum Engineers digested a presentation on casing cement with their salad during the January technical lunch meeting.

Kevin Macedo, a client solutions specialist with Sanjel cementing services in Calgary, delivered a speech on the case study of cementing trials with Husky Energy in the Lloydminster area, the results of which eliminated surface casing vent flows (SCVF) and gas migration.

A high frequency of SCVFs was observed in steam assisted gravity drainage or SAGD wells with high bottom hole circulating temperatures in the Celtic area, 80 kilometres northeast of Lloydminster.

“I think it’s a really good case study for the Lloydminster area,” said Macedo in his opening remarks.

“There are a growing number of SAGD projects in the Lloydminster area, and as such, infill wells are becoming more common and will be a part of the

development strategy for the SAGD projects.”

Macedo covered everything from the source of SCVFs in the Celtic area and why they occur, to what was done to eliminate them, as well as offering conclusions.

Sanjel’s original work with Husky between 2007-10 involved the completion of 49 production and intermediate cement casings for vertical cyclic steam stimulation wells with low bottom hole temperatures of 20 C. The cement used was typical thermal thixotrophic expanding cement, with a low temperature fluid loss and accelerator, a bond enhancer, some gas check additives and free water control additives.

“This blend (1820 kilograms per cubic metre weight) has had a very successful history in the Lloydminster area in preventing vent flows,” said Macedo.

The situation changed however, beginning in January 2011 when SCVFs were detected on some of Husky’s SAGD wells. ɸ Page B19

PIPELINE NEWS February 2013 Éş Page B18 SCVFs were detected following cemented casings on SAGD wells drilled near an active steam chamber that had high bottom hole circulating temperatures between 40 and 50 C. â&#x20AC;&#x153;The cement blend had to be modiďŹ ed to allow for adequate placement of the slurries to the wellbore. In doing that retardants were added to the cement slurry,â&#x20AC;? said Macedo.

Four wells were cemented using the new blend because of the reported circulating temperature.

All four wells had SCVFs â&#x20AC;&#x201C; which triggered an investigation into the cause. â&#x20AC;&#x153;The root cause of vent ďŹ&#x201A;ows was found to be the result of high temperature gradients where it was very hot at the bottom of the well and relatively very cool at the top of the well,â&#x20AC;? explained Macedo. â&#x20AC;&#x153;The cool temperature at the top of the cement column delayed the gel strength development of cement and created an ideal condition for gas migration.â&#x20AC;?

Cement tends to set faster in high tempera-

tures and a lot slower at lower temperatures, he said. â&#x20AC;&#x153;In encountering a well where the downhole temp is very high, you have to design the cement so it doesnâ&#x20AC;&#x2122;t set up before being able to pump it downhole â&#x20AC;&#x201C; then up to surface,â&#x20AC;? said Macedo.

To improve the gel strength development up-hole, two cement blends with high temperature ďŹ&#x201A;uid loss additives were investigated.

Both blends were a thermal thixotrophic cement containing the new ďŹ&#x201A;uid loss additives.

Due to some lost circulation issues with some Celtic wells, a 1700 kg/m3 weighted slurry was used on subsequent wells. â&#x20AC;&#x153;After the implementation of this new 1,700 weight blend, surface casing vent ďŹ&#x201A;ows were eliminated,â&#x20AC;? said Macedo who launched into more detail.

The mechanisms for gas migration range from the ďŹ&#x201A;uid state during slurry placement, the gelled state during cement setting, and the solid state after cement setting. â&#x20AC;&#x153;Lack of ďŹ&#x201A;uid loss could create dehydration in the cement and

B19

Denis Blaquierie leĹ&#x152;, who acted as master of ceremonies at the January Society of Petroleum Engineers, in Lloydminster, presents Sanjel guest speaker Kevin Macedo with a giĹ&#x152;.

you could lose some hydrostatic pressure. That could create an opportunity for gas migration to occur,â&#x20AC;? said Macedo.

After the cement job, pressuring the well to very high levels can also create stresses in the cement sheath and could create pathways for gas migration. ɸ Page B20

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B20

PIPELINE NEWS February 2013

Pengrowth sells non-core Weyburn asset Pengrowth Energy Corporation said it has an agreement in place to sell its 10.02 per cent working interest in its non-operated Weyburn property to OMERS Energy Inc. and Ontario Teachers' Pension Plan.

Total proceeds, subject to closing adjustments, are expected to be $315 million. These funds will be used to help ďŹ nance the initial phase of the Lindbergh thermal bitumen project and in the interim, used

to reduce debt.

On a pro-forma basis, the Weyburn disposition will result in Pengrowth's third quarter 2012 debt decreasing to $1.4 billion (excluding working capital) and an annualized third quarter debt-to-EBITDA ratio of 2.3 times. â&#x20AC;&#x153;This announcement delivers on our commitment to dispose of our Weyburn asset,â&#x20AC;? Derek Evans, president and chief executive oďŹ&#x192;cer of Pengrowth, said in a news release.

â&#x20AC;&#x153;We have achieved full market value after a very thorough sales process. The proceeds will be used to fund 2013 spending on our Lindbergh project.

We will continue to take a disciplined and proactive approach to maximizing value from our existing portfolio and capital expenditure program to facilitate the sustainability of our dividend.â&#x20AC;?

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Pengrowth's share of Weyburn produced an average of 2,500

boepd during the third quarter of 2012 and had proved plus probable reserves of 20.935 million bbl. assigned to it at

Dec. 31, 2011, according to the independent reserve evaluators GLJ Petroleum Consultants Ltd.

Temperature gradients affect cementing Éş Page B19 â&#x20AC;&#x153;Chemical shrinkage and free water in the gelled state can create deďŹ nitely create pathways for gas or ďŹ&#x201A;uid to migrate to the surface,â&#x20AC;? added Macedo.

The cement blend used at Celtic had additives to combat the shrinkage and had very good free water control.

Macedo told the audience that the key part to ďŹ nding a solution is to locate the sources of the gas ďŹ&#x201A;ow.

The case study at Celtic identiďŹ ed the source as the Colorado formation between 265325 vertical metres.

The temperature at the mid-Colorado was about 20 C versus 4050C near the bottom of the well where the temperature was inďŹ&#x201A;uenced by the steam chamber. â&#x20AC;&#x153;So now that we know the temperature where gas migration is inďŹ ltrating into the cement, a gel strength test was measured at the 20 C temperature,â&#x20AC;? said Macedo. â&#x20AC;&#x153;Knowing that gas migration can occur while cement is setting, it is common practice to minimize this period by controlling whatâ&#x20AC;&#x2122;s called the critical interval.â&#x20AC;?

In a nutshell thatâ&#x20AC;&#x2122;s the gel strength development time of the cement as it sets.

The critical interval

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of the cement initially used when vent ďŹ&#x201A;ows were detected was 165 minutes up hole â&#x20AC;&#x201C; nearly ďŹ ve times longer than whatâ&#x20AC;&#x2122;s considered acceptable. â&#x20AC;&#x153;Thatâ&#x20AC;&#x2122;s a large window for gas to penetrate in the cement and create pathways to the surface,â&#x20AC;? said Macedo. â&#x20AC;&#x153;The high temperature gradient was the main challenge to overcome in order to eliminate the surface casing vent ďŹ&#x201A;ows. â&#x20AC;&#x153;The temperature diďŹ&#x20AC;erence between the circulating temperature and the mid-Colorado formation temperature is around 20 to 30 C, Macdeo noted. â&#x20AC;&#x153;With this large of a temperature diďŹ&#x20AC;erence â&#x20AC;&#x201C; it becomes very difďŹ cult to get the cement to behave the way you want it to. The cement will have the tendency of becoming â&#x20AC;&#x2DC;lazyâ&#x20AC;&#x2122; at the lower temperature.â&#x20AC;?

The critical interval was improved by reformulating the cement blend with a high temperature ďŹ&#x201A;uid loss additive and the addition of a retarder.

The reformulated blend had a critical interval time of 20 minutes and was pumped on the next three wells at a rate of 2 cubic metres a minute.

However, there was loss of circulation to surface through the cementing job on two out of three wells which resulted in no cement returns to surface.

Sanjel eventually

settled on a lighter blend of 1700 kilograms per cubic metre weight with a revised pumping rate of .8 to 1 cubic metres a minute. â&#x20AC;&#x153;These changes helped to reduce the circulation pressures exerted during the cement operation,â&#x20AC;? said Macedo. â&#x20AC;&#x153;The new 1,700 weight blend had desirable properties across the gas zone and was measured at 20 C at 32 minutes. We felt given the environment and the conditions, this was acceptable. â&#x20AC;&#x153;To date, we have reported 27 wells cemented with this blend and procedure.

There were good cement returns on all 9 wells in the study. No SCVFs were reported.â&#x20AC;?

In conclusion, Macedo said tests show a high temperature gradient in a cement column can result in excessively long setting times at the top of the cement column. â&#x20AC;&#x153;There have been numerous improvements to cement additive technology to mitigate the eďŹ&#x20AC;ect of temperature of the setting of the cement,â&#x20AC;? he said. â&#x20AC;&#x153;The high temperature additives show it can be used to improve the setting of cement at the top of the cement column in the Celtic area. â&#x20AC;&#x153;Limiting the setting time to 32 minutes was found to be successful in preventing SCVFs,â&#x20AC;? Macedo said in conclusion.

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B21

Might as well move the camper to the rink Estevan â&#x20AC;&#x201C; â&#x20AC;&#x153;Up the boards! Up the boards! Good job! Go get it Colton!â&#x20AC;? yelled Darren Pushie, encouraging his son Colton during a novice game on Jan. 9 at Estevanâ&#x20AC;&#x2122;s Spectra Place.

Pushie is one of ďŹ ve dads who coach the Novice Estevan Flames. When heâ&#x20AC;&#x2122;s not at the rink, he works for TS&M Supply. Itâ&#x20AC;&#x2122;s his third year coaching. â&#x20AC;&#x153;Iâ&#x20AC;&#x2122;m a ďŹ breglass technician,â&#x20AC;? he said, as his head tracked the action back and forth on the rink.

Colton, No. 6, plays defence. â&#x20AC;&#x153;This is my ďŹ rst. Iâ&#x20AC;&#x2122;ve got two in hockey right

now,â&#x20AC;? Pushie said. â&#x20AC;&#x153;My other son is in four-year-old hockey. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s amazing how far they come in less than a year,â&#x20AC;? he said.

Hockey is integral to the Pushie familyâ&#x20AC;&#x2122;s life. â&#x20AC;&#x153;I play in the 30-year-old hockey league,â&#x20AC;? he said. â&#x20AC;&#x153;I play twice a week.â&#x20AC;?

Asked if they live at the rink, he joked, â&#x20AC;&#x153;I just park my camper in front.

Weâ&#x20AC;&#x2122;re at the rink a lot, ďŹ ve to six days a week. â&#x20AC;&#x153;My wife takes them in. I usually meet them at the rink.â&#x20AC;?

Darrenâ&#x20AC;&#x2122;s wife, Kim, works at Regens Disposal.

Darrenâ&#x20AC;&#x2122;s always been on skates. â&#x20AC;&#x153;I played right from when I was little,â&#x20AC;? he said.

Even while chatting on the benches, Pushie is never distracted. Between swigs from the McDonalds coďŹ&#x20AC;ee cup in his hand, he yells encouragement to the players.

When Colton came in from a shift, Pushie sat down with him, grabbing a rink diagram dry erase board and a marker. With his son close to his right, he went through several plays, describing how he should react.

Colton asked questions with interest. Soon, he was out on the ice again.

Asked what teamâ&#x20AC;&#x2122;s hat he wears, Pushie responded, â&#x20AC;&#x153;Montreal Canadiens.â&#x20AC;?

With the NHL lockout ďŹ nally at an end, he said heâ&#x20AC;&#x2122;s ďŹ nally got something to watch on Saturday night. â&#x20AC;&#x153;No Big Bang Theory for this guy,â&#x20AC;? he said.

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Darren Pushie, right, draws out plays for his son, Colton, a defenceman with the Novice Estevan Flames. Pushie is a ÄŽbreglass technician with TS&M Supply in Estevan.

Photo by Brian Zinchuk

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B22

PIPELINE NEWS February 2013

Blaine Chrest and his family spend ÄŽve to six days a week at the rink. But itâ&#x20AC;&#x2122;s sĆ&#x;ll not enough. They also aĆŠend other games when they arenâ&#x20AC;&#x2122;t on the ice themselves. Here he can be seen in the black jacket, going over plays.

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Just canâ&#x20AC;&#x2122;t get enough of that hockey Estevan â&#x20AC;&#x201C; Some people just canâ&#x20AC;&#x2122;t get enough hockey. The Chrest family would be one of them.

Blaine Chrest could be found on the bench of the novice Estevan Flames during practice. More accurately, he was manning one of the doors onto the ice. â&#x20AC;&#x153;I kind of organize most of it, but we donâ&#x20AC;&#x2122;t have a head coach,â&#x20AC;? Blaine said. â&#x20AC;&#x153;We have ďŹ ve guys, because sometimes if you can get three out of ďŹ ve, itâ&#x20AC;&#x2122;s good. Today was a good day. Weâ&#x20AC;&#x2122;ve been lucky. Our guys can mostly make it. â&#x20AC;&#x153;Some guys make

fun of us. We have more coaches on the bench than kids sometimes.

His son Kaden plays on the team. â&#x20AC;&#x153;His twin sister, Jayna, ďŹ gure skates,â&#x20AC;? Blaine said.

When heâ&#x20AC;&#x2122;s not at the rink, Blaine is manager of the Estevan branch of MRC MidďŹ eld. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;ll be a year in April,â&#x20AC;? he said.

Blaine has spent 10 years in Estevan, and worked with several companies.

Being a manager and a hockey dad can have its challenges. â&#x20AC;&#x153;If thereâ&#x20AC;&#x2122;s something to be done (at work), I have to stay. I try to plan my days to get here,â&#x20AC;? he said. â&#x20AC;&#x153;MRC is very good. They like us to be involved in the community. Itâ&#x20AC;&#x2122;s kind of nice.â&#x20AC;? ɸ Page B23 )RU KRXU HPHUJHQF\ VHUYLFH FDOO

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PIPELINE NEWS February 2013

B23

Blaine Chrest manages the MRC MidÄŽeld locaĆ&#x;on in Estevan when he isn't at the rink.

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Éş Page B22 A lot of the people at the rink work in the patch. As a result, networking is common. â&#x20AC;&#x153;You run into people everywhere. The rink is one of the busiest places.

60X200-20â&#x20AC;&#x2122; POST FRAME BUILDING The rink is one of the focal points of the community,â&#x20AC;? he said. â&#x20AC;&#x153;Thereâ&#x20AC;&#x2122;s guys you run into all the time.â&#x20AC;? c/w 40X20 NON-INSULATED BIFOLD DOOR At 47 years old, Blaine has played hockey pretty much all his life. He currently plays on the Estevan Flyers in the over-30 rec league. There are eight teams in the league. â&#x20AC;&#x153;We play two times a week, Wednesday and Thursdays or Sunday 7KLQNLQJ ZLQGRZV" 6KRS DQG FRPSDUH mornings.â&#x20AC;?

0DQ\ W\SHV SURĂ&#x20AC; OHV DYDLODEOH 1RZ VWRFNLQJ YDULRXV OHQJWKV RI Blaine splits rink duties with his wife, Jodi. â&#x20AC;&#x153;I do the ďŹ gure skating,â&#x20AC;? she ,QVLVW RQ &:' ZLQGRZV DQG GRRUV *DOYDOXPH ZKLWH ZKLWH PHWDO 39& :LQGRZV 0HWDO FODG ZLQGRZV said, but she put her foot down, making sure dad comes to the competition. )DUP DQG LQGXVWULDO JDOYDQL]HG JDOYDOXPH DQG FRORXUHG 3DWLR DQG JDUGHQ GRRUV ,QVXODWHG VWHHO GRRUV JDXJH PHWDO RUGHUHG WR VXLW \RXU VL]H DQG QHHGV So between the kidsâ&#x20AC;&#x2122; ďŹ gure skating and hockey, as well as dadâ&#x20AC;&#x2122;s ice time, &DOO IRU FRPSDUDWLYH SULFLQJ 3KRQH IRU SULFLQJ ZLWK \RXU LQGLYLGXDO UHTXLUHPHQWV they are at the rink ďŹ ve to six days a week. But even then, they donâ&#x20AC;&#x2122;t have enough. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;ll often come and watch the Bruins, peewees, atoms, or friendsâ&#x20AC;&#x2122; kids.â&#x20AC;?

(67(9$1 0&/($1 7,6'$/( 3K Â&#x2021; )D[ Â&#x2021; .HQVLQJWRQ $YHQXH (VWHYDQ But that doesnâ&#x20AC;&#x2122;t mean a diet of rink food. +RXUV 0RQ )UL D P S P 6DW D P S P â&#x20AC;&#x153;I learned to cook in a slow cooker,â&#x20AC;? Jodi said, but added, â&#x20AC;&#x153;They have awesome rink food.â&#x20AC;?

VISIT OUR WEBSITE: www.wood-country.com The NHL lockout ďŹ nally ended, but itâ&#x20AC;&#x2122;s not a big deal for him. â&#x20AC;&#x153;Iâ&#x20AC;&#x2122;ll catch highlights, but I donâ&#x20AC;&#x2122;t get much time to watch. â&#x20AC;&#x153;I can see both sides (the owners and play 6WRXJKWRQ 6. ers). Itâ&#x20AC;&#x2122;s a business. â&#x20AC;&#x153;Thereâ&#x20AC;&#x2122;s a thousand guys whoâ&#x20AC;&#x2122;d play. As a 2IILFH &HOO hockey fan, just go back and play.â&#x20AC;?

Vancouver is his team. Thereâ&#x20AC;&#x2122;s a reason for 6HUYLFLQJ WKH 2LO ,QGXVWU\ LQ 6( 6DVNDWFKHZDQ that. â&#x20AC;&#x153;I made it to Vancouverâ&#x20AC;&#x2122;s camp in â&#x20AC;&#x2122;85.â&#x20AC;?

â&#x20AC;&#x153;I can see it, why they want to do that. Itâ&#x20AC;&#x2122;s a x &DQDGD DQG 86 &DUULHUV business. Youâ&#x20AC;&#x2122;re a number. You want a fair share, but I see the ownerâ&#x20AC;&#x2122;s side, too. x 2LO 6DOW :DWHU 7UDQVIHU Blaine grew up in CarnduďŹ&#x20AC;. He moved to x 9DF 7UXFN DQG 6HUYLFH :RUN Estevan to play with the junior A Estevan Bruins in 1981-84. He played alumni game over the x 6XSSO\ DQG 'HOLYHU\ RI 5RFN Christmas holidays. *UDYHO DQG 6DQG :LWK (QG RU %HOO\ 'XPS â&#x20AC;&#x153;I played in Portland and Saskatoon after I ZZZ JRXG\WUDQVSRUW VDVNWHOZHEKRVWLQJ FRP (PDLO JDU\ JRXG\WUDQVSRUW#VDVNWHO QHW left here,â&#x20AC;? he said.

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B24

PIPELINE NEWS February 2013

You may not realize it, but someoneâ&#x20AC;&#x2122;s watching I sat on the couch, crossed my legs, and sipped my coďŹ&#x20AC;ee while

paging through a magazine. My three-year-old granddaughter clam-

bered up on the couch near me and sat down.

She crossed her legs. It

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was not that easy for her. She was wearing a pair of my bright pink sandals on her tiny feet.

She sat quietly for a moment. Without the distraction of motion, I realized that I was wearing a similar pair of bright pink sandals and that we were sitting in the same manner, right leg crossed over left. I marvelled at the coincidence, and then realization dawned. She had done her best to mimic me, from wearing the same colour sandals to crossing her legs. Without my being aware of it, someone (a small someone) had been watching.

I thought back a few years ago to my ďŹ rst year of driving hot shot.

Kyle, the bossâ&#x20AC;&#x2122;s son, had been training me in the hot shot business with the truck and trailer.

The day that came to my mind though, I had a solo job. I drove to where the trucks were parked and got the truck ready for my trip.

Later that day, once I was back and parking the truck, Kyle came by to collect the invoice from me. â&#x20AC;&#x153;I saw you checking the oil on the truck this morning,â&#x20AC;? he said. His tone was one of surprise mixed with awe. He lived nearby and had to

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Shifting Gears

One Womanâ&#x20AC;&#x2122;s Perspective on Life, Liberty and the Pursuit of Land Locations

By Nadine Elson pass by the trucks to get home.

I was confused. Of course I had checked the oil. I was the ďŹ rst to drive the truck that day as far as I knew, and that was what one was supposed to do as part of the circle check.

Then, in a ďŹ&#x201A;ash, I understood. One was supposed to check the oil, along with other things, every day. The problem was how many drivers actually did it?

Clearly not many, if he was surprised that I was, in fact, doing it.

There I was, doing the correct thing, the right thing; unaware that someone had been watching. Thatâ&#x20AC;&#x2122;s called integrity.

I thought back to my 1A truck driver training. The instructor had insisted that the other student and I get under the trailer every day for the ďŹ rst ďŹ ve days so we could physically check the airbrakes and lines, and the leaf springs. Squeezing up between the tractor and trailer on one occasion, I nearly got stuck. The instructor had been watching. â&#x20AC;&#x153;OK,â&#x20AC;? I said to the instructor, â&#x20AC;&#x153;I am the ďŹ rst to admit that I do not weigh exactly the same as I did in high school.

But I am not that big. I have been to the Husky, so I have seen truck drivers. How do they do this and not get stuck?

Some of them are really big.â&#x20AC;?

He laughed and told me that it was a problem in the trucking industry. The checks were not always being done. That was serious because airbrakes and other things on the truck could fail, causing serious accidents. The industry was trying to police itself and improve this, he told me. â&#x20AC;&#x153;Integrity is doing the right thing, even when no one is watching.â&#x20AC;? said C.S. Lewis, author of the Chronicles of Narnia. I love that quote.

But he should have said, â&#x20AC;&#x153;when we think no one is watchingâ&#x20AC;? because more often than not someone is watching.

We are just not paying attention.

How about you?

Are living and working with integrity? Can your actions and life withstand the scrutiny of close inspection?

Because it is very likely that someoneâ&#x20AC;&#x2122;s watching.

Nadine lives in Estevan with her husband and family, and shifted gears a few years ago, becoming a hot shot driver for the oilpatch.

Her people skills are put to good use in the patch as she delivers the goods quickly and eďŹ&#x192;ciently.

Contact her at shifting. gears.hotshot@gmail.com

with comments or questions.

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PIPELINE NEWS February 2013

B25

Three rinks on the prairies bear the name â&#x20AC;&#x153;Crescent Pointâ&#x20AC;?

Crescent Point Energy Corp. and its predecessor companies donated generously to the Crescent Point Wickenheiser Centre in Shaunavon.

Â&#x201E; By Brian Zinchuk Weyburn, Shaunavon â&#x20AC;&#x201C; Several years ago, a trend swept Western Canada, with many communities seeking sponsorships for their recreational facilities to ease the burden on their beleaguered ratepayers.

It was a chance for oilpatch companies to give back to the communities they are involved in, and now there are not one, but three arenas bearing the name of Crescent Point Energy Corporation.

The ďŹ rst was Weyburn, which refurbished the Colosseum arena and renamed it Crescent Point Place. Next was Provost, with its Crescent Point Place Regional Activity Centre in 2010. Shaunavon then put up a new facility in 2011, known as the Crescent Point Wickenheiser Centre.

And while they didnâ&#x20AC;&#x2122;t pick up the name for the whole arena in Estevan in 2011, you can get a drink at the Crecent Point Energy Lounge in Spectra Place.

Anna Bratland, Crescent Pointâ&#x20AC;&#x2122;s social responsibility representative, has been involved with all these sponsorships. Her job is to take care of â&#x20AC;&#x153;community investmentsâ&#x20AC;? â&#x20AC;&#x201C; donations, sponsorships and the like. Sheâ&#x20AC;&#x2122;s been doing it for four years, and came on in that capacity just as the Weyburn rink deal was coming together.

Asked why they do this, she said, â&#x20AC;&#x153;For us, one of our major pillars of support is sport. A ton of our employees are in hockey or in sports in general. â&#x20AC;&#x153;More importantly, community rinks are more

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than just a place to watch hockey. Theyâ&#x20AC;&#x2122;re gathering places for other events that happen there, too. â&#x20AC;&#x153;A lot of our employees play on teams,â&#x20AC;? Bratland said. On top of that, many people come out to watch the teams, such as the junior A Weyburn Red Wings. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s entertainment for the people,â&#x20AC;? she said.

Weyburn received $200,000 for its naming rights until 2025. Provost saw $500,000 for 20 years. In Shaunavon, it was $350,000 for 10 years.

There was a $50,000 box in Weyburn as well, and the company also has a corporate skybox in Estevan. ɸ Page B26

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B26

PIPELINE NEWS February 2013

Weyburn expanded and improved its rink faciliĆ&#x;es in recent years. Crescent Point Energy Corp. stepped forward to buy the name rights to it, and two other rinks.

Éş Page B25 At Estevanâ&#x20AC;&#x2122;s Spectra Place, the Crescent Point Energy Lounge overlooks the west end of the rink, with glass that can be opened to be part of the atmosphere of the event. Brantland said they are a â&#x20AC;&#x153;young and fun company,â&#x20AC;? so the lounge was a good ďŹ t.

In addition to these sponsorships, there are innumerable rink boards here and there, as well as time clocks. â&#x20AC;&#x153;Hockey is really important, not just to small towns, but everywhere,â&#x20AC;? she said.

Hockey is probably the largest focus of Crescent Pointâ&#x20AC;&#x2122;s sponsorships, but they also have supported baseball and some individual athletes â&#x20AC;&#x201C; even a curling team. â&#x20AC;&#x153;We give over $3 million back per year. We increase our budget every year,â&#x20AC;?

Bratland said. â&#x20AC;&#x153;A large chunk in the past was our STARS donation â&#x20AC;&#x201C; a $5 million commitment over four years.â&#x20AC;?

Indeed, Crescent Point was instrumental in bringing the STARS helicopter air ambulance service to Saskatchewan, acting as the lead corporate donor, if not the largest. â&#x20AC;&#x153;So much of our production is in pretty remote areas,â&#x20AC;? Bratland explained as part of their reasoning in supporting the air ambulance The company has about 200 full-time employees between Weyburn and Carlyle, another 50 or so around Provost and approximately 85 at Shaunavon.

That doesnâ&#x20AC;&#x2122;t count the hundreds of people who work for subcontractors of Crescent Point â&#x20AC;&#x201C; everyone from drillers to truckers to pipeliners.

The process for naming rights has often been initiated by communities seeking sponsorship, and the company has responded. Smaller donations are taken care of by local ďŹ eld oďŹ&#x192;ces. Larger ones are done through head oďŹ&#x192;ce for the rink naming. â&#x20AC;&#x153;It takes about six months from beginning to end,â&#x20AC;? Bratland said.

Weyburn Every two years the Weyburn arena is ďŹ lled to the rafters with booths and oilmen, hosting the Saskatchewan Oil and Gas show. But day-to-day, itâ&#x20AC;&#x2122;s the hockey players and ďŹ gure skaters that make the most use of the facility.

The city undertook a several year and several phase renovation and expansion of its rink facility, ďŹ rst built in 1961 and known as the Weyburn Colosseum. The second ice surface is now known as the Ken Zandee Sports Arena. ɸ Page B27

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PIPELINE NEWS February 2013

Naming rights key to fundraising for new or renovated facilities Éş Page B26 The project cost $11.2 million for work on the two rinks. â&#x20AC;&#x153;Crescent Point Energy signed on Jan. 1, 2010 to 2025â&#x20AC;? said Mathew Warren, Weyburnâ&#x20AC;&#x2122;s director of leisure services.

The additions included expanding the front lobby area, adding additional dressing rooms and the like. The project was completed in 2011. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s huge. Itâ&#x20AC;&#x2122;s great to have a corporate partner like them. They believe in growth and in community involvement,â&#x20AC;? Warren said. â&#x20AC;&#x153;It was key for us to have the naming rights sold.â&#x20AC;?

Shaunavon Shaunavon opened the Crescent Point Wickenheiser Centre on July 15, 2011. The rink derives its name from the townâ&#x20AC;&#x2122;s favourite daughter, Canadian womenâ&#x20AC;&#x2122;s hockey star, Hayley Wickenheiser, who received the Order of Canada that year. She has been described as the â&#x20AC;&#x153;best womenâ&#x20AC;&#x2122;s hockey player to ever play the game.â&#x20AC;?

Just prior to its opening, there was a large cheque for $350,000 in town hall from Crescent Point Energy Corp., which had made a donation of its own along with previous donations from Wave Energy and Penn West Exploration, whose assets were purchased by Crescent Point. The total among all three is half a million dollars, according to Jay Meyer, Shaunavonâ&#x20AC;&#x2122;s town administrator. â&#x20AC;&#x153;The contribution that Crescent Point made allowed for the momentum of the facility to continue. Outside of the obvious, which is dollars, it proved that Crescent Point understands the importance of the social economy in a growing community. Without facilities like these, it is a tough sell for employees to move their families and plant rootsâ&#x20AC;Śall and all, the contribution was a win for not only the community of Shaunavon but the entire regional economy as it grows in the southwest,â&#x20AC;? Meyer said.

The rink incorporates an NHL-sized ice surface along with four sheets of curling ice. It seats 800, with standing room bringing that number up to 1,200. The lobby is right up to the glass on the boards on the south side, and overlooks both the hockey and curling rinks. The second ďŹ&#x201A;oor lounge area does the same, and has room for the planned Hayley Wickenheiser Museum.

Shaunavon hosted Hockey Day in Canada in 2004. A seat from Maple Leaf Gardens, donated by Ken Dryden, sits in town hall, destined for the new rink.Everything in the rink has been itemized and it had its naming rights sold, with Crescent Point getting the overall facility name.

The oilpatch has stepped up in a major way. Shaunavon Mayor Sharon Dickie went to board tables in Calgary and came back with substantial contributions.

After 14 years of eďŹ&#x20AC;orts, the town has been able to pay outright for most of the facility, with just $3.5 million in debt on a $14 million complex.

Meyer said the plan was to make the facility multi-purpose. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s used every day,â&#x20AC;? he said, listing activities like yoga, moms and tots, senior walking, aerobics, Christmas parties and galas. The summer sees a lot of weddings as well. â&#x20AC;&#x153;That is our only ice surface. Our schedule is full â&#x20AC;&#x201C; minor hockey, senior hockey, ďŹ gure skating, and two rec teams. Itâ&#x20AC;&#x2122;s packed.

Theyâ&#x20AC;&#x2122;ve hosted events like roller derby, concerts, two WHL games and are even looking at a mixed martial arts event. â&#x20AC;&#x153;The facility has been great for us. Itâ&#x20AC;&#x2122;s the hub of our community, like most rinks are,â&#x20AC;? Meyer said.

B27

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The contribution that Crescent Point made allowed for the momentum of the facility to continue. Outside of the obvious, which is dollars, it proved that Crescent Point understands the importance of the social economy in a growing community. Without facilities like these, it is a tough sell for employees to move their families and plant roots.

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PIPELINE NEWS February 2013

Oil companies and hockey click in Provost Â&#x201E; By GeoďŹ&#x20AC; Lee Provost, Alta. â&#x20AC;&#x201C; Hockey and the oil industry make for some slick playmaking on and oďŹ&#x20AC; the ice at the Crescent Point Place Regional Activity Centre in Provost, Alta.

Every which you look inside the $12.3 million arena and outdoor pool complex that opened in October 2010 for Provostâ&#x20AC;&#x2122;s centennial are names of oil companies sponsoring or donating facility components or activities. â&#x20AC;&#x153;We named dressing rooms, playersâ&#x20AC;&#x2122; benches, the ice surface and penalty boxes,â&#x20AC;? said recreation director Kevin Ganser.

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Kevin Ganser, recreaĆ&#x;on director for the town of Provost, Alta., says the new Crescent Point Place Regional AcĆ&#x;vity Centre that includes an arena, ÄŽtness centre, walking track and outdoor pool brings a lot of families to the community for tournaments and compeĆ&#x;Ć&#x;ons. Crescent Point Energy Corp. purchased the naming rights for $500,000.

â&#x20AC;&#x153;A lot of people donated and we were looking for extra rooms to ďŹ nd â&#x20AC;&#x201C; we had so many people donating during construction.â&#x20AC;?

The total cost of the project was oďŹ&#x20AC;set by an $8.8 million contribution from the Town of Provost and the MD of Provost and a $1 million donation from the Alberta government.

The balance totalling $2.5 million dollars was raised through donations from corporations and individuals in the area. â&#x20AC;&#x153;If you look back at our fundraising eďŹ&#x20AC;orts, oil companies are huge contributors. We raised $2.5 million as a community,â&#x20AC;? said Ganser. â&#x20AC;&#x153;A lot of that came from businesses and a lot of those businesses were the oil companies.â&#x20AC;?

This season, 48 out of 76 above the ice board signs in support of minor hockey are paid for by oil companies including one by Apex Distribution Inc., pointed out by branch manager Dwayne Chopek during a tour of the facility. â&#x20AC;&#x153;The oilďŹ eld is a huge support to the community and as you can see, to minor hockey,â&#x20AC;? said Chopek. ɸ Page B29

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PIPELINE NEWS February 2013

RecreaĆ&#x;on director Kevin Ganser, leĹ&#x152;, talks with town councillor Dwayne Chopek, standing, and Bert Roach, economic development oĸcer, about the strong oilÄŽeld support for the Crescent Point Place arena. The arena opened in October 2010 and is the backdrop for several scenes in a new movie ÄŽlmed in Provost called Beyond the Heavens, to be released soon.

Éş Page B28 â&#x20AC;&#x153;As you look across the ice, you can see our logo. This wouldnâ&#x20AC;&#x2122;t have happened without the support of the whole community and the oilďŹ eld was a huge part of it.â&#x20AC;?

Chopek is an 11-year member of Provostâ&#x20AC;&#x2122;s town council who led the fundraising campaign for the new regional activity centre that includes a ďŹ tness centre and a well used walking track sponsored by Husky Energy and Bearden Engineering Consulting Ltd. â&#x20AC;&#x153;The need and the number of people in the community that were asking for a new facility dictated my desire to replace these facilities so our kids could grow up in proper structures,â&#x20AC;? said Chopek. â&#x20AC;&#x153;They had good support throughout the community and the oilďŹ eld jumped onside as well to help us through this. â&#x20AC;&#x153;With the naming rights, Crescent Point Energy Corp. came up absolutely huge â&#x20AC;&#x201C; $500,000 donated to the facility over ďŹ ve years â&#x20AC;&#x201C; other companies jumped on-board.â&#x20AC;?

The decision by Crescent Point to commit $100,000 a year for ďŹ ve years to acquire the naming rights for a 20-year period has put the company on the local map as a good corporate citizen. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s multi-faceted the repercussions that come back to us,â&#x20AC;? said Kevin McGillivray, ďŹ eld operations manager for Crescent Point in Provost. â&#x20AC;&#x153;The eďŹ&#x20AC;ects are so beneďŹ cial you couldnâ&#x20AC;&#x2122;t really put a monetary value on it.

It has encouraged us to do more of them.â&#x20AC;?

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B29

Crescent Point also spent $200,000 in 2008 to rename the remodelled Weyburn Colosseum which is now known as Crescent Point Place. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s becoming a household name that is giving you the beneďŹ t,â&#x20AC;? said McGillivray about naming rights. â&#x20AC;&#x153;It gives you that beneďŹ t of people wanting to work for the company that people know about. They donâ&#x20AC;&#x2122;t want to work for the unknown. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s really helped us there. Our applicant rate, when we post a job, has gone way up since we started sponsoring rinks like Provostâ&#x20AC;&#x2122;s. â&#x20AC;&#x153;The people in the community know about us and view us as a good corporate citizen so they want to be a part of that.â&#x20AC;?

Crescent Point Place is also the major recreation amenity listed in a new publication called The Provost Region Relocation and Recruitment Guide, which is utilized to attract new workers to the area. â&#x20AC;&#x153;It ties in with our â&#x20AC;&#x2DC;Dreams create the futureâ&#x20AC;&#x2122; website that shows jobs and opportunities in the Provost region,â&#x20AC;? said Bert Roach, Provostâ&#x20AC;&#x2122;s economic development oďŹ&#x192;cer. ɸ Page B30

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PIPELINE NEWS February 2013

Provost’s rink is the third to be named after Crescent Point ɺ Page B29 “The guide will be the printed companion to that. It will let everyone know about the all the amenities we have, including the ones for recreation and health care.

“Having the arena and the pool it is one of our biggest draws as a community.”

Crescent Point made its funding commitment at a time when all they had in Provost was an office and no wellbores in the Provost MD. Last summer the company acquired new Alberta Viking light oil assets in the Provost area from a private company and the acquisition boosted their production to approximately 7,500 barrels of oil equivalent per day.

“We’ve got a big budget planned for this area in 2013. I think we’re going to spend about $80 million in the Provost area, drilling wells and building new facilities,” said McGillivray.

Crescent Point Place maybe the best recruiting tool for new employees and families attracted to the

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booming regional economy that is fueled by strong oil and agriculture in the area.

“It can help draw people to town. It helps to attract families,” said Chopek.

“I can remember when I was working for Encana, people had their option of going to Wainwright, Hardisty and Provost, and Wainwright always won that battle because of the facilities they had.

“It’s a lot easier to get visiting teams to come here to play which helps supports the community.

It’s not the old barn that they didn’t want to come to.”

During its first season, Crescent Point Place hosted the senior AA men’s provincial championship won by the hometown Provost Blades of the Battle River Hockey League.

This spring the arena will host the midget B provincial championship and fill up the motels, hotels and restaurants with hockey visitors.

“Definitely the economic benefits of having more people travelling to town is just a small part of it,” said Chopek, who coaches two hockey teams and a baseball team and plays recreation hockey as well.

“There’s a lot of time volunteered and there continues to be time volunteered from the oilpatch,” he said.

“It’s oilfield workers and it’s away from work to do those things. Hockey practice starts at 4 p.m. some days. If you work until five, you have to have other people cover.

“A busy kid is a kid not getting into trouble. We would much rather have them play in recreation than play in graffiti.”

Available ice time is at a premium with local minor hockey tournaments and games, five recreation teams and a new senior team in town called

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Almost directly over the head of Dwayne Chopek, a town councillor and branch manager of Apex DistribuƟon, is the Apex board sign in support of minor hockey. Apex is one of several oilĮeld companies that helped to fund the new Crescent Point Place Regional AcƟvity Centre.

Apex also sponsors a family change room for the outdoor pool.

the Combines who play in a four team East Central Hockey League.

“We consider this facility a hub for the community. It’s a gathering point. It’s always busy,” said Ganser who plays on a rec team sponsored by MTM Energy Services.

“There are people here all the time whether they are actually playing or walking. It seems to get busier and busier.

“For a small community, we have a very impressive arena and it’s a very proud facility in this community. Everyone is very proud of it.”

Crescent Point Place is also the focal point of a movie originally called Barlowe Man but soon to be released under the title Beyond the Heavens.

“There are several sites in the arena that figure very prominently as scenes in the movie,” said Roach.

“We are really excited about what the facility has done. With infrastructure like this, you are just going to see more things to come our way.”

PIPELINE NEWS February 2013

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PIPELINE NEWS

SECTION C February 2013

Fountain Tire in Lloydminster sponsors a dressing room at the Servus Sports Centre along with this display showcasing the NHL and WHA career of Skip Krake who sells commercial oilĮeld Ɵres for the company. Krake played for the Boston Bruins with Bobby Orr as a teammate. Krake began selling Ɵres for Goodyear, thanks to the Įrst NHL lockout of 1994-95 that eventually brought him to Fountain Tire in Lloydminster in 1997. He had been working in markeƟng for the Edmonton Oilers when the lockout struck.

Fountain Tire scores with oilpatch hockey

By Geoff Lee Lloydminster – Hockey and tires for the oilfield market make the world go around at Fountain Tire in Lloydminster, a company that is a strong supporter of the game at all levels in the community.

Skip Krake, who manages commercial oilfield tires, and assistant manager Kent Staniforth jumped at the chance to speak for owner Brant Wheeler about the need to give back to the game they all grew up with.

“From our point of view, I don’t think there is any question it’s an obligation,” said Krake.

“We all make a comfortable living. People are good to us. You need to give back. It’s that simple.

“The whole world is a marketing job, and it can’t hurt any time your name is out there. Hopefully, it’s in the mind of someone who needs a set of tires.”

Fountain Tire specializes in Goodyear and Dunlop tires, and has experienced strong sales of winter tires of all types this season thanks to plenty of snow and cold weather.

“It’s been an extremely good fall and winter up

to this point,” said Krake on Dec. 15.

Each winter, Fountain Tire steps up its support for just about anything to do with hockey from team sponsorships and facility naming rights to tournaments, advertising and related events.

“We sponsor a lot actually – most of the teams in town, minor hockey for sure, the junior A Bobcats,” said Krake who played 12 years of pro hockey with teams in the National Hockey League and the defunct World Hockey Association.

“We all kind of have a hockey background and Fountain Tire, in general, is a very good corporate citizen, and all these things need help along the way.

“We all have an interest in it. Our kids have played. We’ve played and we still do on occasion,” Krake added.

The junior B Bandits, the junior A Bobcats and the senior AAA Border Kings are among the many local hockey teams Fountain Tire has supported over the years.

Fountain Tire will once again be the presenting sponsor for the annual Hartnell & MacArthur Ce-

lebrity Golf Classic that donates over $200,000 to local charities.

“Fountain Tire is proud to be part of such a generous community. It’s our privilege to give back,” said Wheeler at last year’s event launch.

Lloydminster-born and raised NHL celebrities Clarke MacArthur (Toronto Maple Leafs) and Scott Hartnell (Philadelphia Flyers) will host the 2013 event in the second week of June.

“That’s probably our biggest hockey-related joint venture,” said Staniforth who coached last year’s Border Kings senior hockey team when Lloydminster hosted the prestigious Allan Cup. “We just plain old like to get involved, and that’s because we used to be involved ourselves.

“Brant used to be involved at the minor hockey executive level, so it’s just a sport that we all really enjoy and like supporting.”

Staniforth is taking a break from coaching this year after nearly 20 years behind the bench for various midget, junior B and junior A teams and the Border Kings. ɸ Page C2

C2

PIPELINE NEWS February 2013

Former NHLer calls Lloydminster home Éş Page C1 â&#x20AC;&#x153;Obviously, hosting a national championship like that can get very stressful at times. It deďŹ nitely has that aspect to it,â&#x20AC;? said Staniforth. â&#x20AC;&#x153;Ultimately at the end of the day to sit back and say you were involved in a big event like when they were hosting the Allan Cup â&#x20AC;&#x201C; itâ&#x20AC;&#x2122;s something I deďŹ nitely wanted to be a part of and glad I was a part of it, and Iâ&#x20AC;&#x2122;m glad that itâ&#x20AC;&#x2122;s done too.â&#x20AC;?

Fountain Tire was one of several corporate sponsors of the Allan Cup presented by Raider Well Servicing Ltd. Raider is owned by Marty Stephen, an avid hockey advocate. â&#x20AC;&#x153;Without people wanting to be involved at the corporate level, those things just donâ&#x20AC;&#x2122;t happen or at least donâ&#x20AC;&#x2122;t happen to the magnitude that Lloyd likes to do it,â&#x20AC;? said Staniforth. â&#x20AC;&#x153;A guy like Marty Stephen stepped up to be our major sponsor of that tournament. He felt like he got some pretty good exposure out of that for his company. â&#x20AC;&#x153;He did it because he knows the people involved; he did it because he likes to support the community, but at the end of the day, itâ&#x20AC;&#x2122;s good exposure for whoever sponsors it. â&#x20AC;&#x153;The organizations themselves take a lot of pride being involved in any of the big or small events that

happen in the community. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s not their job to make those things happen, but they all take part in making sure it does.â&#x20AC;?

The junior A Bobcats of the Alberta Junior Hockey League for example are community owned by 87 local investors backed by a lengthy list of corporate sponsors including Fountain Tire.

Fountain Tire is also ready to add its support to the Scotiabank Hockey Day in Canada broadcast on CBC television originally set for Feb. 9 in Lloydminster until the NHL lockout put it on hold until 2014. â&#x20AC;&#x153;We will be involved for sure,â&#x20AC;? said Krake who took part in luncheon events when CBC announced Lloydminster as the host broadcast city and a week of celebrating the Lloydminster minor hockey program.

The Lloydminster has produced dozens of NHL alumni whose careers are featured in corporate sponsored display cases by each dressing room at the Servus Sports Centre.

The featured player in the Fountain Tire display case is Krake, who started his NHL career with the Boston Bruins in the 60s, then the Los Angeles Kings and BuďŹ&#x20AC;alo Sabres.

He also played in the WHA with the Cleveland Crusaders ending with the WHA Edmonton Oilers in the 1974-75 season.

Equal Transport a Division of Canadian Energy Services would like to congratulate Dallas Lequyer on his new role as Service Manager. Dallas has recently returned home from Alberta bringing us his automotive and customer service experience. We are pleased to welcome him as part of our team!

Kent Staniforth, assistant manager of Fountain Tire in Lloydminster, has been involved with hockey all his life and believes the game is an icebreaker that helps build relaĆ&#x;onships and Ć&#x;res sales. Staniforth was originally recruited by Fountain Tire to play junior A hockey in Lloydminster and work part-Ć&#x;me.

Along the way, Krake never forgot the role of sponsors that helped take him from the minor hockey rinks in North Battleford where he grew up, to playing for the Estevan Bruins, his ticket to the Central Hockey League and the NHL. â&#x20AC;&#x153;I can go back to when I ďŹ rst started playing at six or eight years of age or whatever,â&#x20AC;? said Krake. â&#x20AC;&#x153;The service clubs were very involved back in those days. The Kinsmen Club especially, and all the other service clubs were involved and local businesses certainly were.â&#x20AC;?

There is no question, he said, about the importance of companies giving back. â&#x20AC;&#x153;A lot of these companies â&#x20AC;&#x201C; their people are involved too, one way or another â&#x20AC;&#x201C; whether itâ&#x20AC;&#x2122;s them personally or their children or grandkids for that matter.â&#x20AC;?

Krake and Staniforth both started their careers at Fountain Tire through the game of hockey.

Krake bought into a Lloydminster sporting goods store before ending his playing career with the WHA Oilers. He sold it during an economic downturn, and went on to manage retail stores for the team in Edmonton.

During the ďŹ rst NHL player lockout of 1994-95, with little

marketing work to be done, Krake jumped at an oďŹ&#x20AC;er to work for Goodyear in Western Canada. â&#x20AC;&#x153;Then Goodyear and Fountain Tire partnered, and it just evolved to going to work for Fountain Tire,â&#x20AC;? said Krake. â&#x20AC;&#x153;I helped out with some of their stores and they brought me back to Lloydminster because they needed an assistant manager. The rest is history, as they say.â&#x20AC;?

Staniforth played junior hockey with the Moose Jaw Warriors in the Western Hockey League.

He accepted a summer job at Fountain Tire from the store manager who was the assistant coach of the local junior A team. â&#x20AC;&#x153;He gave me a job and persuaded me to stay and play hockey for him, so I ended Iâ&#x20AC;&#x2122;ve ended up ďŹ nishing my junior career in town, and Iâ&#x20AC;&#x2122;ve just never left the store since,â&#x20AC;? said Staniforth who accepted a surprise invitation to coach early on. â&#x20AC;&#x153;I decided it was something I wanted to try. I loved it right oďŹ&#x20AC; the bat,â&#x20AC;? he said. â&#x20AC;&#x153;It gave me a lot of great years of experience with diďŹ&#x20AC;erent people in diďŹ&#x20AC;erent age groups and diďŹ&#x20AC;erent calibers. It was just a great experience all around.â&#x20AC;?

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PIPELINE NEWS February 2013

C3

$17.5 billion linked to Prince Rupert LNG Â&#x201E; By GeoďŹ&#x20AC; Lee Prince George B.C. â&#x20AC;&#x201C; The Prince Rupert area of British Columbia is bracing for a tsunami of energy investment, with up to $17.5 billion of projects tied to the construction of the PaciďŹ c Northwest LNG export facility in nearby Port Edward.

The $9 to $11 billion cost of the LNG facility is headed by Progress Energy Canada Ltd. a company that selected TransCanada Corporation to build, own and operate an associated $5 billion pipeline called the Prince Rupert Gas Transmission project.

TransCanada Corp. will invest an additional $1 to $1.5 billion in expansions of its natural gas network in northeast B.C. The proposed Prince Rupert Gas Transmission pipeline will transport natural gas primarily from the North Montney gas-producing region near Fort St. John, B.C. to the recently announced LNG export facility.

The PaciďŹ c Northwest LNG facility is located on Lelu Island in the Port Edward district, 15 kilometres south of Prince Rupert. â&#x20AC;&#x153;The proposed Prince Rupert Gas Transmission project will allow British Columbians, and all Canadians, to continue to beneďŹ t from the responsible development of the growing supply of valuable natural gas resources in the WCSB,â&#x20AC;? said Russ Girling, TransCanadaâ&#x20AC;&#x2122;s president and CEO in a Jan. 9 statement. â&#x20AC;&#x153;TransCanada has an industry leading safety record that we are extremely proud of, and we look forward to involving the skilled workforce in B.C. and across Canada to help us develop an important new component of B.C.â&#x20AC;&#x2122; s growing natural gas infrastructure.

The proposed large diameter, 750-kilometre pipeline from Fort St. John to Port Edward would have an initial capacity of two billion cubic feet of gas per day with the ability to expand to 3.6 billion cubic feet per day.

Construction of the pipeline would take place over a three year period with an in-service completion target by the end of 2018, subject to provincial and federal regulatory approvals.

The PaciďŹ c Northwest LNG port and the Prince Rupert Transmission pipeline are expected to create approximately 7,000 direct construction jobs with up to additional 300 jobs to operate the LNG export facility.

TransCanada proposes to extend its existing NOVA Gas Transmission Ltd. system in northeast B.C. to connect to the Prince Rupert Gas Transmission project and to additional North Montney gas supply from Progress and other parties.

Progress Energy and TransCanada expect to ďŹ nalize deďŹ nitive agreements early this year, subject to approvals by their respective company boards.

TransCanada will immediately commence Aboriginal and stakeholder consultation and preparation of the relevant regulatory ďŹ lings for this project under B.C. jurisdiction. â&#x20AC;&#x153;Together with our previously announced Coastal GasLink pipeline project, this is the second major natural gas pipeline proposed to Canadaâ&#x20AC;&#x2122;s West Coast for TransCanada â&#x20AC;&#x201C; demonstrating the conďŹ dence that LNG sponsors continue to place in our ability to design, build and safely operate pipeline systems,â&#x20AC;? added Girling.

In determining the ďŹ nal pipeline route, TransCanada will consider many factors, including Aboriginal, stakeholder and government input, environmental inďŹ&#x201A;uences, archeological and cultural values, land use compatibility, safety, constructability and economics.

If approved, the Prince Rupert Gas Transmission project and the proposed Coastal GasLink pipeline project to Kitimat would together add more than 1,400 kilometres to TransCanadaâ&#x20AC;&#x2122;s Western Canadian natural gas transmission systems.

Progress Energy announced the go-head of the PaciďŹ c Northwest LNG export facility in December following the acquisition of the company formerly called Progress Energy Resources Corp. by Petronas Carigali Canada Ltd. The planned export facility will include two LNG liquefaction and puriďŹ cation plants and an export terminal and jetty to accommodate ocean-going LNG tankers.

The annual throughput of natural gas at the LNG export facility is expected to be up to six million tonnes for each liquefaction plant.

When natural gas is cooled to -160 Celsius it condenses into a liquid 1/600th the volume of its vapour state, which allows it to be transported efďŹ ciently over greater distances and dramatically increases its potential markets.

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C4

PIPELINE NEWS February 2013

Kudu coach teaches hockey and life lessons

By Geoff Lee

Coach Jeremy Plamondon from Kudu Industries helps to Ɵghten the skates of his son Jayden, a player on the Matrix Well Servicing novice Tier 2 boys team.

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Lloydminster – Hockey has taught Jeremy Plamondon a lot of valuable lessons about hard work, team work and respect for others that help him be a better account manager at Kudu Industries Inc. in Lloydminster.

Those are some of the same hockey and life skills he’s teaching youngsters on and off the ice as a minor hockey coach for two teams that his son and daughter play for.

This season, he’s the coach of the Matrix Well Servicing novice tier 2 boys’ team and the Wizard Well Servicing

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peewee girls.

He will also be coaching a couple of elite boys’ and girls’ hockey teams when minor hockey play action winds up.

“Obviously, these kids are here because they like hockey,” said Plamondon prior to a novice boys’ practice.

“They have to learn how to play with each other and respect each other and officials, coaches and parents.

“I think through my life, I’ve had good and bad coaches, and I’ve tried to take the positives from the good coaches and relay that on and I try not to do the negatives.”

At novice boys’ practices, Plamondon is assisted by Chris Webb from Hot Tools and Greg Graf who both help the kids execute their drills and enjoy their time.

“I think the main thing we teach them is to have fun. I think we teach them hard work and the fun comes through hard work,” said Plamondon.

“We may not win every game, but we’re close. I think they realize that the hard work is what’s going to help them win the game.”

Those are the same attributes that motivated Plamondon to play through the ranks of both minor hockey and competitive hockey in Lloydminster.

“I have been passionate about hockey all my life. Just like a lot of these kids, I started when I was four,” he said.

“I’ve been fortunate and blessed to play at a fairly competitive level.”

Plamondon played junior A hockey for the Lloydminster Blazers from 1992-95, senior men’s AAA hockey with the Border Kings from 1996-97, followed by 10 years of playing with Neilburg Monarchs.

“When we had our third kid, it was just getting to be too much, so the wife said you are either going to play or coach,” he said.

“I was coaching all along, so I said I will put an end to my career.”

Plamondon’s coworker, sales manager Kris Kykkanen, also coaches a Royal Well Servicing novice Tier 3 boys’ team that his son play on.

Their shared hockey and oil connection enables them to chew over coaching ideas when their sales day comes to an end.

Kudu Industries is a manufacturer of complete progressing cavity pump solutions. Kudu has a staff of about 20 in Lloydminster. ɸ Page C5

Jackson Wiesner shows of his team sponsor sweatering.

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PIPELINE NEWS February 2013

C5

Jeremy Plamondon, coach of the Matrix Well Servicing novice Ɵer 2 boys’ hockey team, gives a pep talk to his players prior to a pracƟce at the Servus Sports Centre. Plamondon is an account manager at Kudu Industries and coaches four teams during the year.

ɺ Page C4 Their PC pump systems are designed to handle the demands of heavy, medium, or light oil, coal bed methane and dewatering applications.

Plamondon and Kykkanen are responsible for sales of everything from downhole pumps and driveheads to power units and PC well managers in the Lloydminster area.

No doubt, their sales are aided by their connections made through the game of hockey and coaching.

“Every year, there are different sets of parents. Every year, you get a few new contacts,” said Plamondon.

“It’s definitely led to sales because of who you are or because you are the coach, and they start asking where you work.

“I think Kudu appreciates that we are involved in the community. Kudu’s being very good.

“They not only sponsor hockey, but academically they’ve sponsored Lakeland College. They made a huge donation in, I think, it was $150,000.”

The donation was made in 2007 to help fund the construction of the Bill Kondro wing.

Kudu sponsors other sports teams and supports facilities such as the renovated arena in Marwayne which a recent financial donation.

Plamondon attributes the strong asso-

ciation between hockey and the oil industry to passion for the game at every level, whether it’s playing or coaching.

“I think hockey has taught a lot of people discipline. In every day jobs, you have to have a certain amount of discipline and respect.

Hockey is sort of a teaching tool for that,” he said.

“I’ve played with a lot of different hockey teams over the years, and the number of people that you cross paths with later on in life – they work for a certain company and all of a sudden you’re buddies and you’re hashing out old times.

“Hockey has given me many tools, and that’s why I want to give back to the kids that I teach.”

Plamondon thought he might start the season by keeping track of how many hours he spends at the rink, but he joked he quickly trashed the idea when he realized he didn’t have time for it.

“There are many hours that are put in.

It’s not just at the rink, it’s when you get home thinking about the games,” he said.

“There are phone calls you have to make.

Coaching nowadays is a lot more time intensive than it used to be.

There’s certain courses you have to take. There’s dealing with the kids and the parents.

“It’s more than just show up at the rink. You

have to have practice plans and you have to basically be prepared.”

It’s the same at work where Plamondon and Kykkanen continue to do their part to ensure Kudu grows its share of the PC pump market as the economy carries over momentum from late 2012 into 2013.

“At the beginning of the year, we had some hit and miss months, but by the end of the year we pretty much came in where we figured we would,” said Plamondon. ɸ Page C6

C6

PIPELINE NEWS February 2013

â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s a lot of time, but itâ&#x20AC;&#x2122;s time spent with them." Éş Page C5 Plamondon is a believer that one of the reasons oilďŹ eld employees work so hard and succeed is due to acquiring the work ethic bug through the game of hockey at an early age. â&#x20AC;&#x153;Sales â&#x20AC;&#x201C; what Iâ&#x20AC;&#x2122;m in â&#x20AC;&#x201C; is kind of no diďŹ&#x20AC;erent than being a teacher or a coach because you have to know how to talk to diďŹ&#x20AC;erent people,â&#x20AC;? he said. â&#x20AC;&#x153;There are 14 diďŹ&#x20AC;erent kids on your team or you go to an oďŹ&#x192;ce and there are 14 or 15 diďŹ&#x20AC;erent personalities. â&#x20AC;&#x153;Hockey teaches you how to deal with diďŹ&#x20AC;erent people. I think just by being yourself is the biggest thing. You learn from whatâ&#x20AC;&#x2122;s gone right in the past and how to talk to certain types of people. â&#x20AC;&#x153;Some people are just work, work, work and other guys are â&#x20AC;&#x2DC;letâ&#x20AC;&#x2122;s talk about

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Thatâ&#x20AC;&#x2122;s what Plamondon and Kykkanen like to do most when they are at the rink or kicking back with their families. â&#x20AC;&#x153;Kris coaches a novice team. Heâ&#x20AC;&#x2122;s enjoying it every bit as well,â&#x20AC;? said Plamondon. â&#x20AC;&#x153;For me, I get to spend time with my kids and their friends so itâ&#x20AC;&#x2122;s a double win. You get to see them grow in their own environment and ďŹ&#x201A;ourish as a hockey player or as an individual. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s a lot of time, but itâ&#x20AC;&#x2122;s time spent with them. â&#x20AC;&#x153;Iâ&#x20AC;&#x2122;ve always loved hockey. At school we would play hockey during recess, and at lunch hour, and after school weâ&#x20AC;&#x2122;d play street hockey. Then I would go home eat, and then we would have hockey practice and Iâ&#x20AC;&#x2122;d play video hockey or whatever. â&#x20AC;&#x153;There are so many kids today â&#x20AC;&#x201C; they miss the ďŹ rst ďŹ ve parts of that and just go straight to the video games. I try to instill hard work and disciplined play into all the kids we coach.â&#x20AC;?

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PIPELINE NEWS February 2013

C7

Lloyd shoots to score on Hockey Day 2014 Better late than never. The city of Lloydminster is looking forward to hosting Scotiabank Hockey Day in Canada in 2014 after deciding to take a pass hosting this year on Feb. 9 due to the late resolution of the NHL lockout. CBC’s Ron MacLean and Don Cherry will celebrate hockey in Lloydminster next year with 12 hours of live coverage and stories to tell about heavy oil and hockey in the community. Mayor Jeff Mulligan and project manager Cindy Rekimowich are eager to talk about what television viewers across Canada may see and learn about the city and its heavy oil economic base when Hockey Day in Canada finally rolls around.

PN: What were the reasons for postponing Hockey Day in Canada until 2014?

Mulligan: Obviously, the NHL labour dispute didn’t allow the time to secure sponsors for the local events. It’s a big extravaganza. We are a host for essentially a five-day event which requires about $750,000 to underwrite it.

Most of the sponsors said they were going to wait until the end of the strike until they knew if it was on or not.

That became the biggest impediment, getting the financial underwriting. It’s not that people weren’t on side, but really it was the uncertainties of the NHL. It put us in a situation where, by the end of October (2012), if we didn’t have those commitments, you couldn’t get your promotional items, your clothing, and you couldn’t continue to secure your venues.

You had to say to CBC and Scotiabank, ‘for us to do your extravaganza properly, we need to have certainty earlier in the game.’

PN: What will CBC viewers see and learn about Lloydminster when Hockey Day in Canada comes here in 2014?

Rekimowich: What a great place it is to live and do business, what a great

Homes for everybody and nothing to fear. This poster was used to aƩract Barr Colonists from England to seƩle in what is now the city of Lloydminster. History lessons like this are likely to be told to Canadians in 2014 when CBC airs 12 hours of live coverage on hockey in the community during ScoƟabank Hockey Day in Canada.

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community it is to raise kids in, and our love for hockey. Lloydminster has a passion for hockey like none other.

Mulligan: Having been to P.E.I. (Hockey Day 2012) and behind the scenes on the work they do – they (CBC) have the best videographers in the world telling the story of the region.

The stories we take for granted – things we drive by every day – it’s become part of the background noise as what we see as being Lloydminster. When they come, everything is through a fresh set of eyes.

They’ll want to look at everything from the Barr Colonists to the oilfield. They will want to tell the story of the oilfield technical society.

They’ll want to tell the story of how we are the heavy oil capital of the world. They will want to expand on Lloydminster’s value to Canada and to Alberta and Lloydminster as a destination.

I really believe they can do a better job than we can of telling the story. I think they will absolutely film at the upgrader.

I think they will absolutely film at some well sites. I think they want to see everything from the offloading (rail) facilities.

I think they will want to tell the story of what is it that makes Lloydminster one of the fastest growing cities in the country. ɸ Page C8

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PIPELINE NEWS February 2013

Players found work in Lloyd when hockey days were done

Lloydminster Mayor Jeī Mulligan and project manager Cindy Rekimowich are delighted to have an addiƟonal year to plan for Hockey Day in Canada acƟviƟes in the city. The event is an opportunity for the city to convey its strong oil and hockey connecƟons and posiƟon it as a desƟnaƟon for tourists and new employees.

ɺ Page C7 What is the economic underpinning? You are going to find that the largest percentage of our GDP is oil.

PN: Do you agree Hockey Day is a chance to talk about the oilfield and hockey connections in

the city?

Mulligan: If you go back to when we brought junior hockey to Lloydminster (Lancers/Blazers), many of those fellows came to play here for two reasons.

One, there were sufficient sponsorships, but more importantly, when their hockey days were

over, they had already aligned themselves with service companies and oilfield companies.

They knew there was a high chance of employment in a meaningful career path. So they came here and played hockey, and the oilfield was usually very supportive and they created some relationships that they leveraged.

Some of those people today are business owners that started years ago with the Lancers or the Blazers.

PN: Do you think hockey in Lloyd helps oil companies recruit new workers?

Mulligan: We have a young community and a proud reputation in recreation and sports and those kinds of lifestyle things.

We may not be able to offer a rich tourism experience, but what we can offer people is an incredibly engaged and active lifestyle and services.

When they know we have strong hockey programs generating boys and girls of good character with an appreciation of being on a team, and there’s good coaching and competition, it’s just one more reason you might relocate your family or your business here. ɸ Page C9

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PIPELINE NEWS February 2013 Éş Page C8 PN: Are there any special venues planned for the Hockey Day event?

Mulligan: We purchased an outdoor rink. Itâ&#x20AC;&#x2122;s sitting right now in components in storage because we couldnâ&#x20AC;&#x2122;t put it up this past October.

Weâ&#x20AC;&#x2122;ll put it up next October at the Civic Centre.

Ultimately, we are hoping someone will come forward and say theyâ&#x20AC;&#x2122;d like to put their name on that venue.

If they put their name on that venue, it would carry over.

We are looking to take that rink structure and move it to the Russ Robertson Arena and have that for the stimulus of the twinning and expansion project of that rink.

PN: Are there many oilďŹ eld companies interested in Hockey Day sponsorships?

Mulligan: We have some oilďŹ eld companies that were expressing an interest. We couldnâ&#x20AC;&#x2122;t secure them because of the uncertainty.

We have more suppliers to the oilďŹ eld companies â&#x20AC;&#x201C; what we are looking for is lighting and protective structures when it comes to gifts in kind â&#x20AC;&#x201C; including power through Atco Electric and those kinds of things for the outdoor venue.

Thatâ&#x20AC;&#x2122;s where youâ&#x20AC;&#x2122;re going to look for the non-monetary gift in-kind sponsorship.

These are mostly people who provide things to the oilďŹ eld, more so than oilďŹ eld companies themselves.

We will be looking at some of the oil companies for a straight ďŹ nancial

sponsorship and they will get recognition.

PN: Will you be rallying additional support from the oil sector as 2014 draws closer?

Rekimowich: The oilďŹ eld is going to play a key part in the whole sponsorship program and we will pull a lot of volunteers from men and women that work in the oilďŹ eld.

They are typically great ďŹ nancial supporters for a lot of events that we host in Lloydminster. We will deďŹ nitely be reaching out to those oil companies to make them part of Hockey Day. PN: Are you surprised by the number of oilďŹ eld employees who support hockey in Lloydminster?

Mulligan: Certainly at the Husky Place building opening (May 2012) I made speciďŹ c reference to the number of people that work for Husky that are in volunteer leadership capacities both in youth and adult activities.

You could go around the room that day and I could point out just about three out of ďŹ ve people in every group that had a community leadership role, be it coaching, mentoring or organizing some non-proďŹ t organizations.

PN: Are you still getting interest from volunteers despite the postponement?

Rekimowich: Itâ&#x20AC;&#x2122;s come to a standstill in the last month. I just got an e-mail today from one of the volunteers that signed up and asked to keep their name on the list for next year.

I donâ&#x20AC;&#x2122;t think itâ&#x20AC;&#x2122;s going to be a problem ďŹ nding volunteers. Lots of people want to be involved in it. We will probably start reaching out again next summer, looking to see who is interested.

Lloydminster is notorious for people volunteering. Itâ&#x20AC;&#x2122;s pretty easy to ďŹ nd volunteers in our community.

PN: What are your personal hockey backgrounds?

Mulligan: I played through to junior in college (Calgary). I had the good fortune to play at those high levels and went on to be a coach at a reasonably high level of junior hockey

C9

in Lloydminster.

I played until my knees said they wouldnâ&#x20AC;&#x2122;t play anymore. Now, Iâ&#x20AC;&#x2122;ve had one redone and I am getting the other one done this year. You should see me back in the old-timers league probably by the end of next year.

Rekimowich: I did play hockey at a diďŹ&#x20AC;erent level than Mayor Mulligan. In 1998, we started two recreational womenâ&#x20AC;&#x2122;s teams in Lloyd, so that was my ďŹ rst stint at hockey.

I played a little bit of intramurals at university, but basically just recreation hockey here in Lloyd for about four years until I had my kids.

â&#x20AC;&#x153;

We may not be able to oÄŤer a rich tourism experience, but what we can oÄŤer people is an incredibly engaged and acĆ&#x;ve lifestyle and services

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- JeÄŤ Mulligan, Lloydminster Mayor

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PIPELINE NEWS February 2013

PIPELINE NEWS February 2013

C11

Nebraska governor approves Keystone re-route

By Geoff Lee Calgary – The decision to approve or reject TransCanada Corporation’s proposed Keystone XL pipeline now rests with U.S. President Barack Obama.

Nebraska Governor Dave Heineman approved the reroute of the proposed Keystone XL pipeline through his state on Jan. 22 – one day after President Obama’s second-term inauguration.

Heineman’s approval comes after his review of the final evaluation report from the Nebraska Department of Environmental Quality (NDEQ) and is the last step in the re-route review process established by the Nebraska State Legislature.

The approved reroute now becomes part of the project’s Presidential Permit application with the U.S. Department of State, which was filed on May 4, 2012.

The news was applauded by TransCanada Corp in Calgary in a same-day news release.

“Over the past year, we have been listening to Nebraskans as we worked to identify a new route for the Keystone XL Pipeline that avoided the Sandhills, protected sensitive areas and addressed as many concerns as possible,” said Russ Girling, TransCanada’s president and CEO. “The NDEQ process has clearly taken into account the input from Nebraskans and today’s approval of the Nebraska reroute by Governor Heineman moves us one step closer to Americans receiving the benefits of Keystone XL – the enhanced energy security it will provide and the thousands of jobs it will create.

“The need for Keystone XL continues to grow stronger as North American oil production increases and having the right infrastructure in place is critical to meet the goal of reducing dependence on foreign oil,” concluded Girling.

The governor’s letter of approval to President Obama points out that the NDEQ final evaluation report made a number of important findings as follows: The preferred route avoids the area that is defined as the Nebraska Sandhills. This area was defined by

state and other agencies in 2001 – long before a pipeline was considered.

In addition, construction and operation of the Keystone XL is expected to have “minimal environmental impacts in Nebraska.”

Construction of Keystone XL will result in $418.1 million in economic benefits and support up to 4,560 new or existing jobs in Nebraska.

The project will generate $16.5 million in taxes from pipeline construction materials and is expected to yield up to $13 million in local property tax revenues in its first full year of valuation.

Normal operation of the pipeline is expected to have no effect on ground or surface water quality or use along the pipeline route in Nebraska.

In the unlikely event of a spill from the pipeline, impacts on water resources would be localized and would not impact the Ogallala Aquifer as a whole.

TransCanada will implement a detailed emergency response plan for Keystone XL and is responsible for cleanup, remediation and compensation related to oil released from the pipeline.

The 57 special conditions TransCanada has agreed to adopt for the construction, operation and maintenance of Keystone XL will make it safer than typical pipelines built in the U.S. and will result in “more rigorous adherence to industry standards.”

The special conditions include burying the pipeline deeper underground, installing a higher number of data sensors and remote controlled shut-off valves and increased inspections and maintenance.

TransCanada will also use special techniques to reduce disturbance and enhance pipeline safety near wetlands, rivers, residential and commercial areas, steep terrain and fragile soils.

The physical and chemical properties of crude oil transported in Keystone XL will be similar to the light and heavy crude oils already being transported safely in pipelines across the United States.

TransCanada will provide local emergency responders with Material Safety Data Sheets for products contained in the pipeline immediately

in the event of a spill.

This proposed oil pipeline will transport oil from Hardisty, Alberta and Baker, Montana before reaching delivery terminals in Steele City, Nebraska.

Keystone XL is estimated to cost about $5.3 billion (U.S. funds) to build and will support the creation of 9,000 jobs on the American portion of the pipeline and about 2,200 on the Canadian side.

The projected in-service date for Keystone XL is late 2014 or early 2015, subject to approval of the company’s Presidential Permit application.

In addition to the company’s work

on Keystone XL, TransCanada began construction on the Gulf Coast pipeline Project in August 2012.

Since work on this project began, TransCanada has employed about 4,000 skilled labourers, trades people, inspectors and project management specialists to build the pipeline from Cushing, Oklahoma to delivery points in the Houston and Nederland, Texas areas.

The initial capacity of the Gulf Coast pipeline will be 700,000 barrels of oil per day, with the ability to increase to 830,000 barrels per day. The company expects that the Gulf Coast Pipeline will go into commercial service in late 2013.

Figure ES-1. Nebraska’s Keystone XL Pipeline Evaluation Process

This map shows the new proposed route of TransCanada Corp.’s Keystone XL pipeline in Nebraska. It avoids many of the ecologically sensiƟve areas that led the Obama administraƟon to block the project in 2012.

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PIPELINE NEWS February 2013

Lloyd Ă&#x20AC;lls hockey void with winter festival Lloydminster â&#x20AC;&#x201C; Lloydminster residents may warm up to the idea of being left out in the cold on Feb. 9 when the city hosts its inaugural winter festival and caps oďŹ&#x20AC; Minor Hockey Week in the community.

The event will take the chill out of a decision by the city to pass on hosting this yearâ&#x20AC;&#x2122;s Scotiabank Hockey Day in Canada event on Feb. 9 due a late end to the NHL playersâ&#x20AC;&#x2122; lockout with little time to plan ahead.

The cancellation of the event also meant the cancellation of a scheduled CBC live television broadcast to be hosted by Ron MacLean from Lloydminster that day.

Lloydminster is now looking ahead to hosting Scotiabank Hockey Day in Canada in 2014 â&#x20AC;&#x201C; with a winter festival included. â&#x20AC;&#x153;The process being what it was and aligning everything the way it should be to be able to do the extravaganza justice, you need to have the

proper lead time,â&#x20AC;? explained Lloydminster Mayor JeďŹ&#x20AC; Mulligan during a winter festival news conference on Jan. 15. â&#x20AC;&#x153;You need to make sure you have the proper prep time. â&#x20AC;&#x153;You want to put Lloydminsterâ&#x20AC;&#x2122;s best foot forward. The way to put Lloydminsterâ&#x20AC;&#x2122;s best foot forward is to have a full year of preparation and be able to do it exactly the way we want to. We are delighted with that outcome.â&#x20AC;?

Hockey is still the focal point of the winter festival with games by teams from the Canadian Womenâ&#x20AC;&#x2122;s Hockey League on tap that were scheduled to take place during Hockey Day in Canada.

Team Alberta will face oďŹ&#x20AC; against the Montreal Stars at the Centennial Civic Centre on Feb. 9 at 3 p.m. and Feb. 10 at 1 p.m. ɸ Page C13

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PIPELINE NEWS February 2013 Éş Page C12 â&#x20AC;&#x153;We contacted them in August when we were working on details for hockey day,â&#x20AC;? said event project manager Cindy Rekimowich. â&#x20AC;&#x153;They were a partner right from the beginning and we had committed to hosting them on Feb. 9 and 10 whether we hosted Hockey Day or not. â&#x20AC;&#x153;They are going to be doing honourary captains for the games, autograph sessions and some camps for our female program. â&#x20AC;&#x153;They are also going to be doing a meet and greet after one of the games with female hockey players on what it takes to be a professional athlete and play at that high level.â&#x20AC;?

Tickets are $10 per game or $15 for both and they are available at Scotiabank, Servus Sports Centre, Lloyd FM and The Goat.

There will also be a junior A Bobcats game at the Civic Centre against the Bonnyville Pontiacs.

BAR Engineering has stepped up from the oilďŹ eld to help sponsor other winter festival events that are free of charge including ball hockey games, public skating, speed skating races and sleigh rides.

The mix of free indoor and outdoor activities will take place at the Servus Sports Centre from 10 a.m. to 2 p.m. with â&#x20AC;&#x153;minute to win itâ&#x20AC;? challenges, crafts and a photo booth. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s a good news story. Thereâ&#x20AC;&#x2122;s no bad in bringing families together and doing family oriented things and creating a caring community in the dead of winter,â&#x20AC;? said Mulligan, who said itâ&#x20AC;&#x2122;s not a replacement for Hockey Day in Canada. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s just an opportunity for us to have something on that day because we got what we wanted and moved Hockey Day in Canada to 2014. â&#x20AC;&#x153;This is just a separate event designed to create a celebration and make a family focused event.â&#x20AC;?

Planning for the winter festival got underway just before Christmas and was inspired by the success of Lloydminsterâ&#x20AC;&#x2122;s ďŹ rst unoďŹ&#x192;cial winter festival held at Bud Miller Park during the 2010 winter Olympics torch relay. â&#x20AC;&#x153;If you think back to January 2010 when we had the Olympic torch relay, that was a winter festival,â&#x20AC;? said Mulligan. â&#x20AC;&#x153;Winter started oďŹ&#x20AC; awfully early this year in 2012. Weâ&#x20AC;&#x2122;ll have the winter blahs long before February. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re thinking if we can break winter up a little bit and celebrate winter, and celebrate ďŹ tness and celebrate getting outdoors and bringing families together in it â&#x20AC;&#x201C; when we talk about a caring family oriented community letâ&#x20AC;&#x2122;s continue to do the things that promote that. â&#x20AC;&#x153;You put Lloyd minor hockey in the mix and the number of events that

C13

people are going to get to do, and itâ&#x20AC;&#x2122;s a good family day. â&#x20AC;&#x153;I think Feb. 9 is going to be a heck of a celebration about whatâ&#x20AC;&#x2122;s good about winter and whatâ&#x20AC;&#x2122;s good about Lloydminster and an opportunity to bring some entertainment to the city.â&#x20AC;?

The Servus Sports Centre will be the host venue for most of the indoor events during Lloydminsterâ&#x20AC;&#x2122;s upcoming inaugural winter fesĆ&#x;val on Feb. 9. The fesĆ&#x;val will help ÄŽll the void leĹ&#x152; by a decision by the city to pass on hosĆ&#x;ng the 2013 ScoĆ&#x;abank Hockey Day in Canada and a CBC live television broadcast from the community that day in favour of 2014 when there is more Ć&#x;me to plan ahead. The sudden end of the NHL playersâ&#x20AC;&#x2122; lockout leĹ&#x152; the city in the lurch.

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PIPELINE NEWS February 2013

Will puck luck strike Lakeland women?

Lloydminster â&#x20AC;&#x201C; Developing leaders through post-secondary sport is the motto of womenâ&#x20AC;&#x2122;s hockey in the Alberta Colleges Athletic Conference.

That is also a goal of Lakeland College in Lloydminster which hopes to ice a womenâ&#x20AC;&#x2122;s team in the four-team ACAC league as early as the 2014-15 season.

Lakeland is celebrating its 100th anniversary in 2013 and has never had a menâ&#x20AC;&#x2122;s or womenâ&#x20AC;&#x2122;s hockey team at either the Lloydminster or the Vermilion campus.

That could change if there is a thumbs-up from a focus group put together by Phil Allen, vice-president alumni, fund development and marketing and

enrolment at Lakeland, to test the interest of level for a womenâ&#x20AC;&#x2122;s team.

No oil company sponsor or group of corporate sponsors have been contacted yet, but if a team is doable, funding sources will be top of mind for Allen who is leading the project. â&#x20AC;&#x153;We are at the very early planning stages. We will be running a focus group Jan. 21 to 26 to see if there is any interest,â&#x20AC;? said Allen in early January. â&#x20AC;&#x153;The bottom line is, if there is funding for a three to ďŹ ve year commitment, then we would proceed with it and make the contacts and so on.â&#x20AC;?

The focus group that is comprised of Lakeland oďŹ&#x192;cials, regional hockey leaders and Lloydminster

City representatives will decide if womenâ&#x20AC;&#x2122;s hockey is right for Lakeland as a post-secondary institution and if there is underlying support and available talent for a team. â&#x20AC;&#x153;If the focus group says itâ&#x20AC;&#x2122;s the right thing to do and we need to move forward on it, then we would put this group of individuals together to go out and start knocking on some doors to see if thereâ&#x20AC;&#x2122;s some corporate or organizational support for us to move forward,â&#x20AC;? said Allen. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;d love to ďŹ eld a team in the fall of 2014, but we certainly canâ&#x20AC;&#x2122;t do it within our current college funding model. ɸ Page C15

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Allen admitted there are no hard numbers to show how many female students at Lakeland would play hockey, but there are about 15 to 20 players from the region currently playing hockey at other post-secondary institutions.

Having a team at Lakeland would provide a hockey outlet for female players in the region and keep the ACAC solvent. Other teams currently in the league are from SAIT, NAIT, Red Deer College and Grant MacEwan. â&#x20AC;&#x153;If Grant MacEwan â&#x20AC;&#x201C; that is now a university would go play at the university level, there would be no womenâ&#x20AC;&#x2122;s hockey league in Alberta,â&#x20AC;? said Allen. â&#x20AC;&#x153;You need four teams minimum to form a league. The whole womenâ&#x20AC;&#x2122;s hockey concept at a post-secondary institution other than at the university level is in somewhat of a precarious situation. â&#x20AC;&#x153;We could solve both needs. We make sure that all these other areas have a league to play in and also help our own region as well. â&#x20AC;&#x153;The opportunity for female players versus male players once they reach the age of 18 is very limited.â&#x20AC;?

There are two Canadian Interuniversity Sport or CIS womenâ&#x20AC;&#x2122;s hockey teams in Saskatchewan and four in Alberta, with few new openings on their rosters each year. ɸ Page C17

Lloydminster Europump Icecats (leĹ&#x152; to right) Kendall Hall, Kallie Hall, Madison Cole and Nicole Kobelka out for a game of shinny at Bud Miller Park might be able to study and play hockey at Lakeland College by 2014. The college held a focus group in late January to determine the level of support for a womenâ&#x20AC;&#x2122;s college team and potenĆ&#x;al sponsors.

The team would play in the Alberta Colleges AthleĆ&#x;c Conference.

Éş Page C14 â&#x20AC;&#x153;There are just no additional dollars available. Our primary focus is on ensuring we educate and provide diplomas and educational opportunities ďŹ rst and foremost. â&#x20AC;&#x153;There are no resources available for us to take from in order for us to start this. There are great funding models out there.â&#x20AC;?

Red Deer College, one of four womenâ&#x20AC;&#x2122;s hockey teams in the ACAC, is strictly 100 per cent community funded by area business sponsors and donations.

Their hockey team is also supported by an Adopt an Athlete and Team Scholarship programs. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s been so successful in fact, they are looking at using the same model for menâ&#x20AC;&#x2122;s hockey,â&#x20AC;? said Allen.

Sponsorship dollars at Lakeland will go towards covering the athletesâ&#x20AC;&#x2122; travel expenses, sporting equipment, ice rental costs and scholarships. â&#x20AC;&#x153;We would need a number of companies to step forward and be prepared to make a three to ďŹ ve year commitment,â&#x20AC;? said Allen. â&#x20AC;&#x153;We estimate the cost of this program is about $350,000 to $400,000 a year, with the ďŹ rst year being the most expensive because we have no equipment whatsoever.â&#x20AC;? â&#x20AC;&#x153;We certainly want to do it because we think young female hockey players in this region should not have to leave home if they were to pursue an education simply because they want to play hockey while they are pursuing an education. â&#x20AC;&#x153;We looked at this area and the huge development and the work that the local minor hockey is doing speciďŹ cally in this region, and it seems to be in womenâ&#x20AC;&#x2122;s hockey. â&#x20AC;&#x153;Womenâ&#x20AC;&#x2122;s hockey seems to come to the forefront whenever we talk about sports.â&#x20AC;?

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PIPELINE NEWS February 2013

Can women's hockey attract power engineering students to Lakeland? Éş Page C15 â&#x20AC;&#x153;A college can provide the one or two year maturation development of skills and merge the educational and hockey requirements â&#x20AC;&#x201C; you have to pass to play,â&#x20AC;? said Allen. â&#x20AC;&#x153;You may need those two years and then you can, in your third fourth and ďŹ fth year, play for a university because youâ&#x20AC;&#x2122;ve had those two extra two years of development and opportunity.â&#x20AC;?

Allen believes that having a womenâ&#x20AC;&#x2122;s hockey team would help attract more female students to Lakelandâ&#x20AC;&#x2122;s power engineering and environmental science programs that are geared to the oil and gas industry.

Lakeland is currently constructing the $17 million ďŹ rst phase of a Petroleum Centre at Lloydminster that will enable the campus to meet student and industry demand by oďŹ&#x20AC;ering more full-time and part-time oil and gas programming. â&#x20AC;&#x153;There are a lot of educational opportunities speciďŹ cally for females,â&#x20AC;? said Allen. â&#x20AC;&#x153;Power engineering would be a great one, especially in 2014 when our new facility opens, and we increase our numbers to 200. â&#x20AC;&#x153;Wouldnâ&#x20AC;&#x2122;t it be great to have 25 or 30 per cent of our power engineers being female?â&#x20AC;?

A womenâ&#x20AC;&#x2122;s hockey team would be administered by the college, with corporate sponsors eligible for various charitable tax deductions and marketing beneďŹ ts. â&#x20AC;&#x153;We could certainly use a major sponsor. If you had 10 companies with $50,000 each or 15 or 20 at $30,000 for three years â&#x20AC;&#x201C; thereâ&#x20AC;&#x2122;s various way to do it,â&#x20AC;? said Allen. â&#x20AC;&#x153;If the funding came in place soon enough, we may be able to run an exhibition team this year and have them play exhibition games this fall against some of the Alberta College Athletic Conference teams to get

our feet wet rather than jumping head ďŹ rst. â&#x20AC;&#x153;Thatâ&#x20AC;&#x2122;s very much a fast track. That would be a great opportunity.

Secondly, we have to make sure there are ice facilities available. Ice is tough in Lloyd, and it would be a requirement to take some. â&#x20AC;&#x153;We have not even gone so far as to decide what facility we would play in. We need the City of Lloydminster to partner with us to ensure we have ice time available.â&#x20AC;?

Allen said the outcome of the focus group could be known as early as the week of Feb. 3-9 during Minor Hockey Week in Lloydminster.

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Phil Allen, vice-president of advancement, alumni, fund development, marketing and enrolment at Lakeland College, put together a focus group to discuss the viability of building a womenâ&#x20AC;&#x2122;s hockey team. A team would help aĆŠract more female students to Lakelandâ&#x20AC;&#x2122;s programs. A decision is forthcoming.

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PIPELINE NEWS February 2013

PIPELINE NEWS February 2013

Story and photos by Geoff Lee Lloydminster – Kent Smith, one of the owners of BAR Engineering Co. Ltd. in Lloydminster, is quicker than a puck drop when it comes to volunteering his time for the game of hockey and other sports.

His website profile at BAR lists his volunteer work as a board member and director of the atom division of the Lloydminster Minor Hockey Association and similar roles with the Lloydminster Border Blades Speed Skating Club, along with coaching.

The list can be updated to include some free time spent as a board member and director of the

Assistant coaches John Rekimowich, leŌ, and Greg Brown help teach the fundamentals to players on the Kudu Peewee Blazers at a pracƟce at the Russ Robertson Arena in Lloydminster.

Coaches corners located on the rinks novice division in minor hockey.

This year he is on the local Breakaway on the Border committee for Scotiabank Hockey Day in Canada festivities Feb. 5-9 and is coaching the Kudu Peewee B Blazers that his son Ethan plays for.

Coaching is a no-brainer for Smith who is a mechanical engineer.

He grew up playing through the minor leagues in Lloydminster as well as playing some junior B hockey and one season with the senior men’s AAA Border Kings in 2000 when Lloydminster hosted the Allen Cup. “It’s probably typical of a lot of guys like me involved in hockey growing up and playing the game.

I still play the game myself, and now with my son,” said Smith prior to a team practice.

“It’s one of those things – you are around the rink all the time with practices and games. You want to give back to the game so you get involved in a coaching capacity.

“I’ve got a lot of really good friends this year I am coaching with. It’s a good group of people so it’s just something that I want to give back.”

Smith is aided on the ice by assistant coaches Greg Brown, an area manager for Apex Advanced Solutions, Warren Noble, a general maintenance worker at Husky, and John Rekimowich, an operator with Husky.

Rekimowich’s wife Cindy is the project manager for Scotiabank Hockey Day in Canada originally planned for Feb. 9 in Lloydminster, but rescheduled to 2014 due to short notice of the NHL lockout ending.

“She took on that

job in the fall. That’s been kind of exciting – hockey is a big part of lives,” said Rekimowich.

“It’s kind of exciting for her to get that. It will definitely put us on the map.”

Smith can’t argue with the fact Hockey Day in Canada will help Lloydminster promote the strong connection between hockey and oil companies including BAR’s involvement in the game.

“On one level, we do provide some sponsorship to various hockey teams,” he said.

“Basically, any employees that have been involved with kids in hockey, we will sponsor various things within that hockey season.

“There are also several other members of our company that are involved in a coaching aspect, usually with their kids coming up through the various divisions.”

That’s the motivator for Husky employee Rekimowich, who grew up playing minor hockey in Lloydminster and now has three kids of his own in the game.

“The last six years I’ve been doing this since my youngest started. It’s good. I really enjoy it,” he said.

“I love hockey and it’s great working with the kids.”

Teaching the fundamentals of the game is what it’s all about on the ice for Smith and his other assistants Brown and Noble who played for the senior men’s Border Kings.

“We are still working on the basics of skating,

passing and shooting,” said Smith at a practice session.

“We’ve got a really good group of kids here.

We are starting to work on some positional stuff as well – where they need to be offensively, defensively – breakouts – even a little bit of power play and a bit of penalty killing.

“If you get the right group of kids together, there is no end to what you can teach them. “ Hockey team sponsorships by companies such as Kudu Industries Inc., and support from oilfield companies like Husky and BAR are easier to come by when times are good as they have been for past few years.

“We’ve been real fortunate as I think a lot of companies in our area have been. We’ve had several very good years of growth,” said Smith.

“With all the uncertainty that’s out there in the world markets, we know how quickly those things can change, but we are certainly optimistic that we won’t see any downturn in the near future.”

BAR is one of 87 local companies that stepped up to keep the junior A Bobcats of the Alberta Junior Hockey League as a community-owned team when they threatened to move in 2011.

BAR also supported the construction of the Servus Sports Centre multiplex several years ago in order to provide more ice surfaces to keep pace with the growth of minor hockey.

“We knew it was a building that just had to be

built. We needed the extra ice surfaces. That was a big driver for us to help out there as well,” said Smith.

His company made a financial donation to the facility despite knowing the engineering design of the multiplex was done by an outside firm.

BAR has done some follow-up project work in and around the building with lighting improvements.

The company heads into 2013 with the expectation of another strong year of growth for all its building, municipal, oil and gas, utilities and rigs and cranes divisions.

“It’s only January now, but all indications are everything’s moving ahead. Our growth plans are right on track so we are real happy with where we are going,” said Smith.

“I would say we don’t have a division that isn’t busy. One of the biggest challenges that we have is just finding qualified people.”

BAR is actively recruiting for its municipal division, and if new employees play hockey, so much the better.

“We have had a couple of Border Kings working with our company,” said Smith.

“They are no longer playing, but they played for a number of years.

“We’ve never specifically hired someone – these are both local guys who were playing for the Kings when they came back, but we didn’t offer them a job so they could come back.

“I know that has happened quite commonly.”

Husky is also supportive of giving Rekimowich time off if he needs

C19

it for the odd weekend tournament.

“Sometimes you have to take a Friday off and sometimes in the evening, you have to leave bit early for the early practices we have,” he said.

In the Lloydminster oilpatch, talk about hockey is a great way to break the ice with new business connections or associates.

“As far as networking is concerned, I don’t have to go very far outside of Lloydminster and I run into clients and vendors and even co-workers that are all involved in hockey,” said Smith.

“It seems to be a common passion that a lot of people here share.”

The dressing rooms are small at the Russ Robertson Arena in Lloydminster so Kent Smith, the head coach of the Kudu Peewee Blazers, has a room to his own during this pracƟce hour. Smith is coaching for all the right reasons – the love of the game, to give back and because his son Ethan is a Įrst year peewee player on the team.

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Kudu Peewee Blazers’ coach Kent Smith standing on the leŌ, runs an acƟve pracƟce that follows a brief huddle with his players. Smith works at BAR Engineering and is aided on the ice by assistant coaches Greg Brown from Apex Advanced SoluƟons to the right and by Warren Noble and John Rekimowich from Husky Energy.

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PIPELINE NEWS February 2013 The Wizard Well Servicing peewee girls coached by Jeremy Plamondon, an account manager with Kudu Industries in Lloydminster, is one of 62 teams registered to play this season in the Lloydminster Minor Hockey AssociaƟon.

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Lloydminster – Look no further than the Lloydminster Minor Hockey Association for evidence of how oil companies lend their financial support to the game of hockey at the grassroots level.

It takes a lot of money to run the LMHA that has 987 boys and girls registered to play on 62 teams this season, with the number of players growing at a rate of 25 to 30 per cent a year.

“Our annual budget is almost $1 million – we’re about $950,000 to $960,000,” said LMHA general manager Darrell Wagner. He added that this includes about $200,000 for administrative costs.

“Of that total budget, probably 70 per cent of it comes from the membership itself in the form of fees. The balance is made through corporate donations and sponsorships that we pursue throughout the year.

“The oil sector in Lloydminster helps us out tremendously. They sponsor 18 teams in our mainstream hockey and those are three year commitments. That’s right around $17,000 a year that we get from that revenue.”

The list of division sponsors, sweater sponsors and tournament program sponsors on the LMHA website reads like an oilfield directory.

“We’ve got three companies that sponsor our referee mentorship program. Everything we do is on a three year commitment, and they are giving us $2,500 each for three years,” said Wagner.

Another unnamed oil company has partnered with LMHA for a three year annual $2,500 underwriting of a KidZone program that seats a minor hockey team at the Civic Centre for Lloydminster Bobcats’ games.

“We do prizes at every game that just those kids are eligible for. It’s our way of supporting the junior A team,” said Wagner.

“On our elite side of hockey – that’s our midget and bantam triple A teams, the oil sector probably provides about $25,000 a year in sponsorship for those teams.

“That money comes directly to Lloydminster Minor Hockey. That’s a sponsorship that we get to add into our budget.”

“The oil companies, on top of that, individual sponsorship for players and teams and other things the oil sector does in the community probably brings in another $100,000 a year in sponsorship that goes directly to the teams’ operating expenses.

“Anytime we go to do something, we go knock on their doors; they are more than willing to help us and we appreciate it,” added Wagner.

“Honestly, if not for the corporate sector and our volunteers, we couldn’t function.”

Of the 62 teams registered with the LMHA this season, Wagner estimates that 80 per cent of the coaches are employed directly or indirectly by the oil industry.

He can also count seven or eight members on the board as oilfield employees.

Wagner is a Zone 2 clinic co-ordinator and is stoked by the news Hockey Alberta is assigning a full time employee to the association office at the Servus Sports Centre.

“We are going to have direct access to Hockey Alberta’s programs by having an employee right here to help us,” he said. ɸ Page C21

PIPELINE NEWS February 2013

Darrell Wagner, general manager of the Lloydminster Minor Hockey AssociaƟon is excited about upcoming local Minor Hockey Week acƟviƟes Feb. 3 to 9. Wagner said minor hockey would not exist at its current level without corporate support and volunteers. The majority of coaches come from the ranks of local oil and gas companies.

ɺ Page C20 Surprisingly, Wagner said he never learned how to skate and has never played a game of hockey in his life, but he loves the game.

“Now, I get to do the best I can to make sure everyone else gets to enjoy it,” he said.

That includes some events that will go ahead as planned on Feb. 9 during a winter festival that takes the place of the CBC Hockey Day in Canada broadcast in Lloydminster that was recently postponed until 2014.

“With the cancellation of Hockey Day in Canada, there were certain events that still had to run,” said Wagner.

“In conjunction with the City, we’ve got our Minor Hockey Week. We’re running ball hockey tournaments and skills competitions for all of the minor hockey kids.

“We’re still making a fun week of it,” said Wagner.

Team Alberta and the Montreal Stars from the Canadian Women’s Hockey League with also play two games on Feb. 9 and 10 at the Civic Centre.

Wagner likes the challenge of running nine regular tournaments and one provincial tournament in Lloydminster, knowing they generate more than $1 million a season in economic spinoffs for local businesses.

“The direct spinoff to the hotels – they get about $75,000 per tournament,” said Wagner.

He estimates visitors spend at least $12,000 per event on restaurants and approximately $5,000 for fuel for buses and cars.

“I can’t even measure the spinoff on shopping and other related things people do when they’re here. Typically it’s about $100,000 per tournament, conservatively,” he said.

Some of those visiting teams are also sponsored

by oil companies with wide reaching operations in Western Canada that can lead to some lighter moments on the ice.

“We had a tournament a while ago where one of the oilfield companies that supports a team in Lloydminster also supports a team in another community, and they ended up playing each other,” said Wagner.

“It was kind of comical because the team sponsor was the same company on both jerseys.”

Despite the strong economy and continuing growth in the oil sector in the region, Wagner said it is harder these days to raise money than it used to be.

“It’s there, you just have to know how to tap into it. It’s not like it used to be where it was just cut a cheque and worry about it later,” he said.

“They want to us to be accountable. With the ref ’s mentorship program, those companies want to know what I am doing with the money they gave us. Is there a value for their dollar?

“We have to show these companies that we are providing value for their sponsorship.

“On our website, we get half a million hits a year. Those oil companies – all our sponsors – they all get recognition for all they do for us.”

Oil sector support for a viable LMHA and the game of hockey is also a tool to recruit new employees and families to the area.

“People moving to this community want to know what is there for their children to do,” said Wagner.

“If we, as Lloydminster Minor Hockey can offer a sound viable association for them to play hockey – if we can show them that we’ve got a good organization – we are sound financially, responsible and accountable and we put a good product on the ice – you will attract employees.”

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PIPELINE NEWS February 2013

Cave men wield hockey sticks

Dean Braham throws a friendly elbow at his younger brother Greg at the Kitscoty Arena where they both have logged several years coaching minor hockey teams.

Kitscoty – If there were a small business guide for supporting minor hockey, Cave Inspection Ltd., owned by Dean Braham, his brother Greg, and Trevor Leslie could write a chapter.

The three business partners all played a high level of junior hockey and know the value of donating their time and coaching expertise to the sport along with some materials goods.

Cave, a non-destructive oilfield testing company with about 35 employees and 16 mobile units, simply copies larger oil and gas companies that sponsor major events or purchase naming rights.

“Some of the bigger companies like Fountain Tire, they do a ton of sponsorship with some of the major events in town,” said Dean, who sponsors and plays for the Cave Bulls recreation hockey team in Lloydminster.

“As a business owner, you would like to get involved in that. The bigger businesses are such great leaders.

For us small businesses – to have a look at what they do, gives us an idea of what we could do one day.”

Dean has coached minor hockey

for over 14 years including initiation squads in Kitscoty, Universal Heat Bantam AAA and the R’Ohan Rage AAA Minor Midgets in Lloydminster.

His younger brother, Greg, has also several years behind the bench as does Trevor Leslie who volunteers on the board of the Lloydminster Minor Hockey Association.

“Being a small business like we are, it’s tough to make ends meet, but we try to give back to the community many different ways and the biggest way is the time,” said Dean.

“What we’ve given back is our time with coaching and helping.

“I actually think it’s simpler to get behind the bench and coach instead of doing all that other work that is required by other the regular parents out there that are involved in the oilfield to get things done.

“Your presidents of minor hockey, your vice-presidents, the groups, the boards – all the people behind minor hockey are involved in the oil industry.”

Dean and Greg specially spend a lot of time at the Kitscoty Arena, the hub of winter family life in the area. ɸ Page C23

PIPELINE NEWS February 2013 ɺ Page C22 “On the weekends it’s a pretty busy place.

It’s tough to find parking there,” said Dean.

“It’s from 8 a.m. in the morning till the last guys are getting off the ice at 11.30 p.m. It’s very busy.”

Ironically, this is the first season since Cave Inspection began in the mid-90s that Dean and Greg are not behind the bench coaching a team, but the rink is still their second home.

One of Dean’s four kids plays hockey with the Kitscoty Pitbulls, a travelling midget team, while Greg is cheering his youngest son on an atom team this year after coaching him for four years.

Cave Inspection also purchases a billboard at the Kitscoty Arena and buys toques sporting the Cave log for young players in Kitscoty and Lloydminster.

The company even successfully overbid $250 on framed office hockey poster in support of an atom tournament in Kitscoty – where everybody knows who does what.

“You get a lot of recognition. It’s a good way to get your name out to the public in the community,” said Greg.

“They see your name. Everyone goes to the rink. Almost all the guys you work for have kids that are into hockey. You buy toques for the little guys or put your poster on the rink and everyone sees it.”

More toques could be on order as Cave Inspection also has mobile

units in Wainwright, Cold Lake, Lloydminster and Provost where oilfield companies have supported new arenas.

“I don’t know if you have seen the rink in Bonnyville?” asked Dean.

“We were just up there with minor hockey with the Kitscoty Pitbulls. What a facility they have, thanks to many people in the oil industry.”

The Cenovus Arena is part of the $25 million Bonnyville & District Centennial Centre that opened in 2007.

“Lac la Biche has a beautiful arena. Wainwright has a beautiful arena. There is money involved from small business in every town.

It happens to come from the oilfield generally lots of time,” said Dean.

Dean and his partners could be spending even more time at the Cenovus Arena as the company is looking at expanding its operations in Cold Lake in 2013.

“There’s lot of activity there and we are also looking at possibly going into Saskatoon.

There is a strong demand for our services,” said Dean.

Cave’s non-destructive testing includes magnetic particle testing, radiography or X-ray testing and Ultrasonics to determine the integrity of oilfield metals.

“It’s an assurance – mainly welding in the oilpatch – pipeline facility and fabrications,” said Greg.

“We do some structural testing. It’s the same as getting an

X-ray at the hospital except we do it on metal.

It is very similar.”

Cave relocated to a new 7,200 sq.-ft. office and shop in 2010 and there were no mobile units to be seen at the facility when Pipeline News paid a visit on Dec. 18.

“That’s the way we like it,” said Dean.

“When you look through the window and you see it’s empty, that’s the way we like it. It’s been very good lately – the last 17 years it’s been pretty good in this area.

“We do testing throughout Saskatchewan and more north and east Saskatchewan

C23

Dean Braham from Cave InspecƟon Ltd. in Kitscoty stores his hockey bag in his truck during the winter season. He sponsors and plays for the Cave Bulls, a men’s recreaƟon hockey team in Lloydminster. In his glory days, Dean played on the Memorial Cup champion Prince Albert Raiders in 1985.

and we stay primarily north in Alberta.”

All three owners owe their good fortune to hockey dating back to the mid 1980s for Dean who played for the

Prince Alberta Raiders in the Western Hockey League and won the Memorial Cup in 1985.

His younger brother, Greg, played Junior A hockey for the Flin Flon

Bombers while Trevor laced up briefly for the Spokane Chiefs and the Jr. A Lancers (now the Bobcats) in Lloydminster. ɸ Page C25

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PIPELINE NEWS February 2013

PIPELINE NEWS February 2013

C25

Well-paying jobs and a stick on the ice Éş Page C23 â&#x20AC;&#x153;Hockey got me into industry,â&#x20AC;? said Dean. â&#x20AC;&#x153;Through hockey I got a couple of jobs. I was working in P.A. at odd jobs and I got a call from Barry Skrudland, brother of NHLer Brian Skrudland who was playing for Montreal at the time. â&#x20AC;&#x153;Barry was running a team in Kindersley and was trying to put together a team to go for the Allan Cup. He got me an interview and they said they had this job with radiation.â&#x20AC;?

The job was with AM Inspection Ltd., a non-destructive testing company in the Western Canadian oilďŹ eld. â&#x20AC;&#x153;I went down for an interview and got the job and I started playing hockey there. I

played there for years and moved up here and played for the Border Kings in Lloydminster. â&#x20AC;&#x153;I started an oďŹ&#x192;ce up here for AM Inspection and then I decided to basically go on my own.â&#x20AC;?

Greg was hired on in 1997 after Trevor came on board in 1995. â&#x20AC;&#x153;The oil industry has enabled a lot of us guys to get a job and to have a well-paying job because of hockey and allowed us to keep playing and putting into the game we love,â&#x20AC;? said Dean.

Dean once played against Kent Staniforth who played for the Moose Jaw Warriors in the WHL and with him on the Border Kings.

Staniforth lives in Kitscoty and coached

the Border Kings in last yearâ&#x20AC;&#x2122;s Allan Cup in Lloydminster. â&#x20AC;&#x153;We were talking about how much time that minor hockey takes,â&#x20AC;? said Dean. â&#x20AC;&#x153;I sure realized how much time we put into it. It was eight hours a day, seven days a week and Saturday and Sunday it was 10 to 12 hours.â&#x20AC;?

Dean Braham, the founder of Kitscoty-based Cave InspecĆ&#x;on Ltd. has his meeĆ&#x;ng room decorated in hockey posters of events like the NHL Winter Heritage Classic that he attended. Dean is a business partner with his younger brother, Greg, and Trevor Leslie who have years of playing, coaching and volunteer experience with minor hockey.

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C26

PIPELINE NEWS February 2013

It could be déjà vu all over again at the Wainwright Oilmen’s Bonspiel Feb. 1-3 for last year’s A-Event winning D & C Melin Trucking rink of (l-r) Colin Tanton, DusƟn Small, Dallas Melin and Dean Spornitz. Bob Bishop’s Baker Hughes team hopes to bounce them from that pedestal.

File photo

Wainwright bonspiel broom ready Wainwright – Bob Bishop, a lead organizer of the 2013 Wainwright Oilmen’s Bonspiel to be played Feb. 1-3, hopes to send a better laugh out loud message to the world this year.

Bishop is an area field manager for Baker Hughes’ upstream chemical division and skips a company team that lacked the chemistry it needed to win in 2012.

His year-old post game e-mail to Pipeline News said it all: “I lost out in the D event…bit of a rough go this year…lol.”

Getting back into the winner’s circle is easier than it sounds however, in a busy oilfield season for Baker Hughes that is selling a lot of corrosion inhibitors to oil producers in the region.

“We look after a lot of areas going

south toward Consort and Chauvin, and out west towards Viking and Sedgewick. It should be a really good year,” said Bishop.

Bishop has opted to curl as a spare this winter in local men’s league curling and heads into bonspiel more familiar with gripping a snow shovel than a curling broom.

“It’s been pretty busy. I haven’t been able to curl much myself. We are looking forward it,” he said in a Jan. 14 interview.

“We are hoping to get a team into Provost’s bonspiel the week before ours, but we haven’t entered yet.”

This year’s bonspiel at the Wainwright Curling Club will be second time it will be held in February after an ice plant repair in 2011 bounced the event from its previous spot in the

first week of November.

The new time worked out well last year with 21 teams taking part with up to 24 teams expected to register by Feb.1 in four events.

“It was a new date last year and maybe people are more familiar with the date from last year, and maybe we will catch a few more new ones this year,” said Bishop.

“This year, we just decided to stick with the February date and see how it goes. It’s more in the curling season.

It’s right in the heart of the curling season and the bonspiel season.

“It’s a weekend we can stick with going forward in the future.”

The event includes a popular banquet hosted by the Elk’s Lodge and the Ladies of the Royal Purple.

“The Elks look after everything

from the food and the bar and help us clean up. They do a really good job for us,” said Bishop.

The bonspiel committee usually asks local businesses to donate prizes that are used to raise money for local charities during a silent auction at the banquet.

“Rather than just give them all away, we try to take these donations and turn them into some cash and try to do some good with it in the community,” explained Bishop.

Money from entry fees is used to buy prizes for the four event winners of the bonspiel and other competitors.

“We get really good support from all our businesses and also from oilfield companies as well. It’s just a matter of getting some curlers out.

Everything’s in place,” said Bishop.

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PIPELINE NEWS February 2013

C27

Husky is marking its 75th year of business in 2013. Today, Husky is a business pillar in the city of Lloydminster where it has established an asphalt reĮnery, heavy oil upgrader and an ethanol plant. File photo

Husky celebrates 75th milestone Calgary – Husky Energy still has a youthful spring in its step as it celebrates its 75th year of business operations in 2013.

“For three-quarters of a century, our people have been on the front line of oil and gas exploration,” said CEO Asim Ghosh.

“We have been a pioneer in heavy oil technology, a leader in the exploration and development of Western Canada and the Atlantic region, at the forefront of new developments in the Asia-Pacific region, and a responsible citizen in our communities.”

Husky’s roots can be traced back to 1938 in Cody, Wyoming, where a small family-owned asphalt and bunker fuel business was incorporated as the Husky Refining Company.

In 1946, the refinery was moved to Lloydminster on the Alberta/Saskatchewan border to tap the region’s rich heavy oil resources. Over seven decades, Husky has built a business in the community that includes an asphalt refinery, heavy oil upgrader and ethanol plant.

Husky has grown into one of Canada’s largest integrated energy companies.

Operations have expanded throughout Western Canada and are supported by refining interests in the United States. Husky is developing new growth pillars in the Asia-Pacific region, the oilsands, and the Atlantic region.

“We continue to build on Husky’s proud record of achievement as we create the next generation of growth for the company and our shareholders,” said Ghosh.

Husky now has more than 5,000 employees and annual production of approximately 300,000 barrels of oil equivalent per day.

C28

PIPELINE NEWS February 2013

Petrobank to inject $15M at Kerrobert Calgary â&#x20AC;&#x201C;Petrobank Energy and Resources Ltd. plans to spend $15 million before operating expenses developing its Kerrobert toe to heel air injection or THAI project and Kerrobert trend lands in 2013.

The allocation for Kerrobert projects is the biggest chunk of money from the company $23 million development capital expenditures for the year announced Dec. 10.

The 2013 capital plans include the drilling of 12 vertical wells in the Kerrobert trend lands for stratigraphic evaluation and potential cold heavy oil production.

Total capital and operating expenditures including operating and maintenance costs in 2013 but before net production revenue for all company projects and activities is expected to be less than $50 million.

Petrobankâ&#x20AC;&#x2122;s operat-

ing plan at the Kerrobert THAI site remains focused on increasing air injection rates, increasing production rates and reducing operating costs per barrel.

The Calgary-based company will continue to increase air injection rates, which stood near 16 percent of design capacity in early December up from approximately 8 percent in late-September. â&#x20AC;&#x153;Production rates are expected to react positively as we continue to increase air injection rates,â&#x20AC;? said the company that has patented THAI technology. â&#x20AC;&#x153;We have also recently completed a water disposal well near our Kerrobert project which will reduce operating costs.â&#x20AC;?

Petrobank continues to evaluate their Kerrobert channel trend lands and recently completed three vertical stratigraphic wells near their Luse-

land properties.

The company also recently completed a large 3D seismic on their Kerrobert trend lands and a 4D seismic update at the Kerrobert THAI project site.

The results of the analysis of the wells and seismic data will be completed shortly.

The company reported it should have completed one of the vertical wells for cold production by the end of 2012.

Capital expenditures in 2013 at Dawson in the Peace River area of northern Alberta are expected to be less than $1 million before operating expenses.

The timing and capital commitment of a THAI demonstration project at Dawson will be determined later in 2013.

The company reported that cold production operations from the ďŹ rst horizontal production well at

When the Kerrobert toe to heel air injecĆ&#x;on or THAI project reaches 50 percent of design capacity it is expected to generate $45 million of annual operaĆ&#x;ng income. By mid December 2012 the site was near 16 per cent design capacity, up from 8 per cent in September. The THAI project near Kerrobert includes this set of storage tanks photographed in August 2012.

File photo

Dawson commenced in late-October.

Cold production at the second horizontal well was expected to begin before the end of 2012.

These wells are expected to produce for a period of time to precondition the reservoir prior to start-up of the THAI demonstration

project.

Petrobank expects to fund their 2013 expenditures with cash on hand and sales revenue from production. â&#x20AC;&#x153;Assuming the completion of our previously announced reorganization with PetroBakken at the end of 2012, Petrobank will begin 2013 as a

well ďŹ nanced heavy oil company leveraging our strong asset base and patented technology,â&#x20AC;? said the company. â&#x20AC;&#x153;We expect to have over $100 million of cash and no third party debt, assuming the receipt of PetroBakkenâ&#x20AC;&#x2122;s December 2012 dividend in cash in midJanuary, 2013.â&#x20AC;?

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C29

Lloyd airport gets 21st century lights one year period and 147 patients from April to December 2012 â&#x20AC;&#x153;As the major transportation gateway, the Lloydminster Municipal Airport beneďŹ ts not only our community, but the entire region,â&#x20AC;? said Wade Frasz, airport manager. â&#x20AC;&#x153;Overall, the project is 90 per cent ďŹ nished.

When complete, the Airport Airside Electrical Rehabilitation project will enhance safety and allow for future growth.â&#x20AC;?

In 2012, there were 15,814 landings and takeoďŹ&#x20AC;s on the 5,579 foot runway that is lit by 118 lights. There is also a 1,500 foot crosswind strip.

The upgrades completed to date by Integrated Airport Systems (IASL) include the replacement of existing high voltage 5Kv series lighting cable and

isolating transformers using existing underground raceways and pulpits.

Crews have also installed high voltage constant current regulator switchgear to replace 30-year-old airďŹ eld lighting equipment.

The new system is fully integrated to the NAV Canada ďŹ&#x201A;ight service station through the use of a touch screen control interface and a complete upgrade to the airďŹ eld electrical systems.

The system enables incoming pilots to remotely activate runway lights during after-hours through the use of their radio switch linked to the NAV Canada computer.

The rehabilitation work at the airport began in September and will resume in May when ground thaws with the replacement

of edge runway lighting with energy eďŹ&#x192;cient quartz lights.

IASL will also install new wind direction indicators and a strobe beacon that will enable pilots to clearly identify the airport from city lights at night.

The airport lighting system utilizes an automated frost-free heater, which reduces power consumption from 3,200 watts to 22 watts, when the system is idle in winter conditions and prevents frost from building on the runway lights. â&#x20AC;&#x153;By using advanced energy-eďŹ&#x192;cient technol-

ogy, such as low-energy quartz light-bulbs, the rehabilitation of the airportâ&#x20AC;&#x2122;s airďŹ eld electrical system will provide cost savings for the city,â&#x20AC;? said Peter McHugh, general manager of airport and buildings. â&#x20AC;&#x153;The new airport electrical system is fail-safe, requires less maintenance and most importantly, ensures the continuing safety of our team and other airport users.â&#x20AC;?

Some of the completed work includes the replacement of seven kilometres of cable and 5.7 kilometres of conduit cleaned out.

s

Lloydminster â&#x20AC;&#x201C; The Lloydminster Municipal Airport is a safer ďŹ&#x201A;y by night operation today thanks to a $694,500 upgrade of the runway lighting system that is nearing completion with no disruption to regular ďŹ&#x201A;ight services and airport operations.

The upgrades will allow approaching pilots to remotely activate runway lights during afterhours airport operations with their radio switch.

The Airport Airside Electrical Rehabilitation project replaces 30-year lighting technology as airport traďŹ&#x192;c continues to grow on pace with the booming regional oil and gas economy.

The municipal airport, located northwest of Lloydminster, served an average of 90 passengers a day from April 2011 to March 2012 with ďŹ&#x201A;ight services provided by Central Mountain Air, Border City Aviation and Courtesy Air. Regular passenger terminal hours of operations are Monday to Friday from 7:30 a.m. to 6:30 p.m.

Lloydminster Emergency Care Services transported 211 patients over the same

Toll Free: 1-888-847-7778 OfďŹ ce: 306-672-3062 Fax: 306-672-4427 Email: dynamicreso@gmail.com

Seven new constant current regulator cells and 118 new transformers have been installed and 236 connectors were heat-shrunk sealed to reduce the chance of water penetration and from frost damaging the connections.

The upgrade began following an inspection of the airportâ&#x20AC;&#x2122;s airside electrical system

by IASL last July and their recommendation to replace runway edge light circuits, precision approach path indicator light circuits, regulators and the airďŹ eld lighting control system before winter.

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PIPELINE NEWS February 2013

Southern PaciĂ&#x20AC;c toots its rail horn Calgary â&#x20AC;&#x201C;Southern PaciďŹ c Resource Corp. tooted its own horn over progress at its two steam assisted gravity drainage or SAGD heavy oil projects in its ďŹ rst operational update of the year on Jan. 7.

The Calgary-based company announced the ďŹ rst rail shipment of diluted bitumen from its STPMcKay thermal project in Alberta to Mississippi, increasing bitumen production at McKay and new SAGD wells drilled at the STP-Senlac thermal project in Saskatchewan.

The company reported the ďŹ rst rail shipment of diluted bitumen (dilbit) from STP-McKay arrived in Mississippi on Jan. 6 after leaving the Lynton rail terminal south of Fort McMurray on Dec. 22.

This ďŹ rst shipment and future shipments of dilbit will be oďŹ&#x201E;oaded at the Genesis Natchez terminal in Mississippi where Southern PaciďŹ c has exclusive terminal capacity.

Southern PaciďŹ c plans to build inventory in Natchez for most of January, with sales expected to commence towards the end of the month.

The company has several markets prepared for purchasing its product and expects to receive pricing competitive with other U.S. Gulf Coast heavy oil imports.

As a result, Southern PaciďŹ c expects to receive a signiďŹ cantly improved netback for its bitumen sales as compared to a sale into local markets based on Western Canadian Select pricing.

Southern PaciďŹ c has also completed a purchase arrangement to supply its diluent sourced from the U.S. Gulf Coast and shipped via rail, using Southern PaciďŹ câ&#x20AC;&#x2122;s returning rail cars to the Lynton terminal.

From Lynton it will be transported by truck to

the STP-McKay plant site to be used in the bitumen/water separation process.

The company expects to reap substantial savings from this source of diluent with the ďŹ rst loads scheduled to arrive at McKay around Jan. 21.

Southern PaciďŹ c continues to truck a portion of its heavy oil production at Senlac to a nearby rail terminal at Unity as it has been since October 2012 rather than shipping it down its connected pipeline.

Southern PaciďŹ c committed to increase its oil sales by rail at STP-Senlac in January to 1,500 bpd and implemented new loading facility improvements which made this easier to accomplish operationally.

The company expected to receive a signiďŹ cantly better netback on these rail-based volumes, as compared to the balance of production being shipped by pipeline.

The marketing options will enable Southern PaciďŹ c to direct the Senlac heavy oil product to the most favourable market in the future.

At Senlac the drilling of Pad K is nearing completion â&#x20AC;&#x201C; the ďŹ rst two well pairs (four horizontal wells) have been completed, with drilling of the ďŹ nal well pair underway in January.

The ďŹ rst two well pairs have encountered an average of 500 metres of clean sand and the third well pair is expected to obtain similar or better results.

All drilling was expected to be completed by the end of January. The ďŹ rst well pair will begin steaming in mid-January, with the remaining well pairs following close behind.

A warm up period of six to eight weeks is then required before the wells are placed on production.

Phase K is expected to provide a signiďŹ cant increase to base production. Production at Senlac in

2012 averaged approximately 3,500 bpd.

Meanwhile, bitumen production at STP-McKay, located 45 km northwest of Fort McMurray, continues to ramp up with the last estimated average bitumen production rate in December at 1,200 barrels per day, up 22 per cent from the previous month.

Production rates are expected to approach the 12,000 bpd design capacity 12 to 18 months after production began in mid-October 2012.

This ramp-up period is required to condition the wellbores for even temperature conformance and allow adequate time for the development and growth of the SAGD chambers within the oil sands reservoir.

The 12 SAGD well pairs that were initially drilled are equipped with comprehensive subsurface measurement of temperature and pressure and have multiple steam delivery and production recovery points within each well.

Southern PaciďŹ c reports it is being conservative in the initial stages of converting the well pairs from circulation to SAGD. It is utilizing downhole technology to ensure even temperature conformance and chamber development has occurred along the horizontal length of the wells before the wells are converted to steady state SAGD. The company says this approach is designed to ensure the long-term integrity of the wellbores and assist in maximizing the total recovery of bitumen from each well pair over its producing life. To date, seven of the 12 well pairs have been fully converted.

The remaining ďŹ ve well pairs are at various stages of circulation and will be converted to full SAGD operation when the timing is right.

Steady progress is occurring and once the conversion to SAGD operation has been completed, the well pairs are operating predictably.

Southern PaciďŹ c has also commenced an exploration program to drill 10 to 13 core holes on its McKay lands by the middle of March.

The program will focus on delineating lands to the north of its current project.

Depending upon results, the program could add incremental reserves to justify a further expansion or be integrated into the existing expansions, which include the STP-McKay Phase 1 expansion, which has a design capacity of 6,000 bpd, and STP-McKay Phase 2, which has a design capacity of 18,000 bpd.

These existing expansions are in the application process, with approval anticipated towards the end of 2013.

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PIPELINE NEWS February 2013

C31

Torquay completes sale Torquay Oil Corp. reports that it has completed the previously announced plan of arrangement with CanEra Energy Corp., whereby the purchaser acquired all of the issued and outstanding Class A and Class B shares of Torquay.

The purchaser paid cash consideration of 16 cents per Class A share and $1.60 per Class B share for aggregate consideration of approximately $21

million, including the assumption of Torquayâ&#x20AC;&#x2122;s anticipated net debt of approximately $11 million.

The arrangement was approved by 93 per cent of the Class A and Class B shares voted at the meeting and received the approval of the Alberta Court of Queen's Bench.

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PIPELINE NEWS February 2013

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LEAD OPERATORS OPERATORS â&#x20AC;&#x201C; VARIOUS LEVELS FIELD MAINTENANCE COORDINATOR Please note that the positions are all located in the Estevan and Weyburn areas.

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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

Apply by E-mail: jessiejames@sasktel.net Fax: 306-634-4361

S We require the following:

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29(5 <($56 67521* ,1 2,/),(/' &216758&7,21 $ 5 1 ( 7 7 % 8 5 * ( 6 6 Oilfield Construction Limited

NOW COME JOIN OUR TEAM!

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

â&#x20AC;˘ PIPELINE CONSTRUCTION LABOURERS â&#x20AC;˘ FOREMEN â&#x20AC;˘ HEAVY EQUIPMENT OPERATORS

-Employee & Owner Operators with Pipeline Construction Experience

All positions require previous experience in Pipeline Construction.

Previous experience on Pipeline Integrity projects is an asset.

Compensation: Competitive wages Overtime Daily Subsistence /Living allowance

Preferred Certifications H2S Alive Standard First Aid & CPR

Field Sales Representative Required Position Description: The Field Sales Representative will be in direct contact with customers in the field. You will be visiting customers on rig sites, field offices and at other predetermined locations. As a Sales Representative you will be a customer focused individual that is motivated to deliver quality service on time. As this is a Field Sales role, extensive daily travel may be required.

Responsibilities: Call on key drilling personal to provide our products and services.

Develop, cultivate and continuously grow customer base.

Provide solutions and technical support to customers.

Promote our business and brand in the area.

Invoice customers in a timely manner.

Collect drill bit records from the area.

Desired qualifications: 1+ yearâ&#x20AC;&#x2122;s oilfield sales / service experience preferred.

Excellent communication, organization and time management skills are required.

An aptitude to build and to solidify long term business relationships.

Computer competency and Microsoft office knowledge would be beneficial.

Drivers licence and clean drivers abstract required.

If interested please submit your resume and contact information via email to: bhoy@drilformance.com 34-2

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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

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C34

PIPELINE NEWS February 2013

Deloro Ă&#x20AC;nds drill targets in Wilkie

The Deloro Resources Ltd. heavy oil project near Wilkie could be busier in the coming months than it was in the summer of 2012 when former mayor Kevin Glessing was pictured at the site for a Pipeline News proÄŽle on Wilkie.

Deloro has idenĆ&#x;ÄŽed three prospecĆ&#x;ve drilling locaĆ&#x;ons based on a ÄŽnal interpreted report on a 3D seismic survey taken during the spring of 2012.

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Vancouver â&#x20AC;&#x201C; Deloro Resources Ltd. has a much clearer idea today of whatâ&#x20AC;&#x2122;s underfoot at its heavy oil project in Wilkie and where to drill new wells.

The Vancouver-based company last drilled a well in the area in the fall of 2011 in a project partnership with Electro-Petroleum Inc. (EPI) using direct current as an enhanced oil recovery

method.

The company has interpreted 3D seismic taken at the site during the spring of 2012. It identiďŹ es three new drilling locations in the McLaren formation for the deployment of the EPI heavy oil recovery system.

The three prospective drilling locations are based on the presence of thick, continuous, highporosity reservoir sand above known or interpreted oil/water contacts.

The existing wells are divided into four pools, based on variations in oil/water contacts, although seismic interpretation of the sand presence and continuity implies that all pools within the 3D area are connected in some way.

Channels are interpreted to be up to 39 metres thick with proposed wells drilled to depths between 600 to 630m with 400m horizontal legs.

The companyâ&#x20AC;&#x2122;s expectation is that if an EPI well is drilled optimally into the formation, it should have signiďŹ cant production and be a game changer in the heavy oil space.

There is an estimated resource of 63 million barrels of heavy oil in the McLaren formation.

One purpose of the

seismic survey was to better understand the results of the existing three wells

CAREER GuĂ&#x2014;de

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$OOLHG &DWKRGLF 6HUYLFHV / 3 Is currently looking for individuals to fill the following positions: Cathodic Protection Technician/Technologist Immediate permanent full time position. Experience is an asset but not required. Electrical background an asset. Must have a valid drivers license and safety tickets. Competitive wages & benefits. Allied is an equal opportunity employer.

Office Administrator Immediate full time 1 year maternity leave position - may lead to a permanent position. Must be self motivated & work well with others. Must have experience in MS Excel, Word, and Quickbooks.

Wages negotiable with experience.

Benefits package available.

Mail or drop off resume to: #6, Hwy 39 E PO Box 1338 Estevan,SK S4A 2K9 Fax: 306-634-4476 mtarnes.acs@sasktel.net Only those chosen for an interview will be contacted

that fell short of expectations.

The seismic shows that of three deviated wells already drilled in the area, the 2010 and 2011 wells appear not to have reached the pools, having been abandoned at the top of the McLaren Channel.

The original horizontal producing well, known as the pilot well, also appeared to be mostly above the best quality McLaren sand, which explains the limited production. â&#x20AC;&#x153;We are extremely pleased with the results of the data acquisition and interpretation,â&#x20AC;? said Deloroâ&#x20AC;&#x2122;s president Reza Mohammed in a Dec. 12 news release. â&#x20AC;&#x153;What is of particular interest is that that pilot well, which produced approximately 15 barrels per day with EPI stimulation, appears not to have entered the main zone.â&#x20AC;?

The pilot well was a historic well retroďŹ tted with the EPI system as a proof of concept when the project got rolling in 2009.

The company has updated its website with additional information about the Wilkie Project and the EPI technology.

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PEOPLE, INNOVATION, TECHNOLOGY D&D Oilfield Rentals, a division of Savanna Energy Services Corp. is a fast-growing, vision and values based organization.

D&D is actively recruiting for a dynamic, energetic individual to join their organization in the role of an Area Manager/Representative to develop and expand their business in the Saskatchewan region.

To be successful in this position, you will possess: â&#x20AC;˘ Strong interpersonal and relationship development skills â&#x20AC;˘ Excellent customer service skills â&#x20AC;˘ Strong organizational and time management skills â&#x20AC;˘ Ability to travel, and occasionally be away overnight â&#x20AC;˘ A valid driverâ&#x20AC;&#x2122;s license and acceptable driving record â&#x20AC;˘ Professional conduct and personal appearance â&#x20AC;˘ Technical capability â&#x20AC;˘ A record of success or strong aptitude for direct selling â&#x20AC;˘ High school diploma or equivelent required, college degree preferred. Certificate in Marketing and/or Communications or equivelent work experience considered an asset â&#x20AC;˘ 8â&#x20AC;&#x201C;10 years related work experience

Savanna offers comprehensive benefits and an RRSP program with employer matched contributions.

If you are keen to pursue a challenging and rewarding opportunity, please apply online at www.savannaenergy.com/careers

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PIPELINE NEWS February 2013

C35

Phone: 780.614.2113 Fax: 780.614.2115 Luc Cell: 780.210.0635 email: nlwelding@mcsnet.ca Box 1789, St. Paul, Alberta T0A 3A0

• Winch Tractors Available

Step Deck Scissor Deck

B-Pressure Steel Sales Portable Rigs Structural Steel Shale Tanks Flock Tanks Silos 400 BBL Tanks Mud Tanks 12’ Brake & Shear 200 Ton Iron Worker Custom Sandblasting & Painting • Internal Tank Coating • • • • • • • • • • • •

www.northernlightswelding.com

C36

PIPELINE NEWS February 2013

PUMPING UNITS

1280 912 640 456 320 228 160 114 80

FULL INSTALLATION SERVICE AVAILABLE!

Large inventory in-stock Call today for a quote!

PLATINUM Phone 403.264.6688 Toll Free 1.888.745.4647

Lloydminster

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