Pipeline News March 2013 by Pipeline News

PIPELINE NEWS Saskatchewan’s Petroleum Monthly

March 2013

Canada Post Publication No. 40069240

FREE

Volume 5 Issue 10

Cenovus donates $1.5 million to Lakeland

Bright times for Northern Lights

Vertical integration key for BGW Bonspiel Season Greg Wock, one of the owners of Axis Services in Estevan, uses an automaƟc bore welder to build up the bore of an electric motor’s bearing housing. That addiƟonal material will then be machined down. See story page B8. Photo by Brian Zinchuk

Heil DOT 407, 38 & 46 Cube, 1 & 2 Compartment In Stock

New 38 cu 2comp & 42cu 2compt stainless steel tridems internal lines & belly cabinet April Delivery

Heil & Hutchinson TC 406 Crude 38 Cube - In Stock

NEW 2012 Hutchinson , Tridem, 18 cube TC406 crude, stiff pole pups, Units in Stock

Heil DOT407 Quad Wagon, 32 Cube - IN STOCK

New Tremcar Pneumatic super b - 2200 cu ft May/13 Delivery

New Heil & Tremcar 3 compt, 407 code, super b’s, delivery 2nd quarter of 2013

1988 - 2006 Code & Non Code 34 cu - 38 cu tridems IN STOCK.

New Hutchinson TC 406 16 & 11 cube tank on order

New North Country Tridem End Dumps, In Stock

Sales • Lease • Service • Parts • Repair Registered B620 Certiﬁed Shop

Polar tridem stiff pole Aluminum steel pup, IN STOCK

Tremcar DOT 407, 38 & 46 Cube. IN STOCK

All Types of Tankers, Vac Trailers, Gravel, Grain, Livestock, Goosenecks, Open and Enclosed Recreational Trailers Hwy. 16 West, Lloydminster, AB ∙ 1-866-875-7665 ∙ 1-780-875-7667 ∙ www.tnttankandtrailer.com

PIPELINE NEWS March 2013

INSIDE SECTION A

Cenovus donates $1.5 million to Lakeland

Columnists

11 Lloydminster oilman of the year Q&A

Co-op ReĮnery complex has third Įre

Editorial

18 High demand for welder training at Lakeland

Opinion

22 Lloydminster bonspiel preview

SECTION B 1

Bright Ɵmes for Northern Lights

18 Weyburn oilmen's bonspiel

11 ReƟrement for couple means opportunity for C&N Supply

28 Estevan OTS bonspiel now mixed

14 Saskarc builds carbon capture project innards

SECTION C 1

BGW's growth hinges on verƟcal integraƟon

Husky not dependant on rail

Sask. Oil & Gas Show coming up

12 Husky's downstream unit oīset price gap

Crescent Point turns increasingly to rail as a shipping opƟon

17 Pump Alert monitors criƟcal systems

PIPELINE NEWS Saskatchewan’s Petroleum Monthly

April 2013 Focus

ROAD BANS & SUN TANS

Contact your Sales Rep to be a part of the focus edition

SE & NW SK and SW Manitoba • Phone: 306.634.2654

Cindy Beaulieu cbeaulieu@estevanmercury.ca

Candace Wheeler

Deanna Tarnes

Kristen O’Handley

Teresa Hrywkiw

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

Carlyle Phone: 306.453.2525

SW SK Phone: 306.773.8260

Regina & Saskatoon Phone: 306.715.5078

Alison Dunning

Stacey Powell

Al Guthro

observer@sasktel.net

spowell@prairiepost.com

al@prairieng.com

PIPELINE NEWS March 2013

TOP NEWS

New Northgate logistics hub to handle grain, oil, and oil industry supplies

own and operate the grain handling facility. Ceres’ grain subsidiary, Riverland By Brian Zinchuk Ag, will be a major customer of the grain facility, and will work closely with Pipeline News Scoular on the procurement of certain grains. Northgate – As crude-by-rail takes off as an export option for SaskatchThe company is not new to crude-by-rail, however. They are a one-quarter ewan’s oilpatch, a new facility has been announced for the border crossing at partner in Stewart Southern Rail, the shortline that runs from Stoughton to Northgate. Regina. At Stoughton, Crescent Point Energy Corp recently relocated and Ceres Global Ag Corp. announced on Feb. 5 a new combined facility that expanded its crude loading facility, bringing total shipping capacity to 40,000 will include a grain terminal, oil-loading site and transloading facilities for the barrels per day. That makes it by far the largest crude-by-rail shipping facility in import of items like frac sand, aggregate and pipe. Saskatchewan to date, accounting for the bulk of Saskatchewan’s crude-by-rail Construction is planned to commence in the spring, subject to receipt of all necessary permits and approvals and finalization of agreements with project shipping. The Northgate facility will eventually be almost double the capacity of Stoughton. partners, with initial grain and oil shipments expected later in 2013. The total “We are building on the experience capital cost is budgeted to be $90 million. we have as a minority owner of Stewart The facility will be built out over three NORTHGATE COMMODITY LOGISTICS FACILITY CONCEPTUAL PLAN Southern Railway,” Michael Detlefsen, years, and has been designed ultimately to president of Ceres, told Pipeline News by handle up to 40 million bushels of grain phone from Toronto. annually and 75,000 barrels of oil per day. The company’s focus is mostly grain, More than 100 construction jobs will be as indicated by its name. “We looked at created, and about 30 ongoing jobs once Northgate for grain initially in wake of the facility is fully operational. the Canadian Wheat Board deregulaThe facility is unique in that it will tion,” he said. Then they started looking give shippers a third mainline rail option at the potential for shipping oil, as well as beyond Canadian Pacific and Canadian transloading imports of aggregate, pipe and National. This track, jutting just across the frac sand. border from Northgate, N.D., belongs to Asked about why they acquired so BNSF Railway. That railway has become much land, he said they were developing the leading shipper of crude-by-rail in the multiple businesses – grain, oil transloadUnited States, and is owned by Berkshire ing, and supplying product for the oil inHathaway, headed by Warren Buffet. Its dustry. “We wanted enough room to grow network is almost entirely west of the these businesses. Mississippi, “This is not flat. There are 70 foot The connection to BNSF’s network gullies in part of it. Not all of the land is will give shippers direct access to customusable.” ers in 28 states, numerous Pacific and Gulf They plan on having a conservation ports as well as Mexico along BNSF’s area along the river, he added. 32,000 mile network, including over 45 The first loop will be built for grain, crude-by-rail destinations. Access to many while the oil development will occur in other strategic interior locations and phases. Atlantic ports will be available through “We’ll start with a manifest operation BNSF’s rail connections. and move to a unit train,” Detlefsen said. The footprint of the facility is large. Unlike other Saskatchewan facilities, Ceres purchased 1,500 acres, which is where oil is loaded from trucks directly roughly the size of the populated area of onto trains via a transloading meter, the Weyburn. It will contain two loop tracks plan is to fill storage tanks and then load – an inner one for grain handling, and an the trains from the storage tanks. outer one for oil. The site plan released ɸ Page A9 by Ceres indicates a future outer oil loop track is planned, as are additional oil staging tracks. The new rail facility planned for Northgate will Ceres will be partnering with Scoular have tracks dedicated to grain and crude oil Company, a major U.S.-based agricultural shipping. Graphic courtesy Ceres Global Ag Corp. marketing company. Scoular will fund,

Our 60 Ton Tandem Tri-Drive Tow Truck Safely Tows All Your Service Rigs, Coil Tubing, Flushbys, Picker Trucks

Tri Drive 30 Ton

780.875.HOOK 4

Highway 16 West 10 Miles West of Lloydminster H

30 Ton Winch Tractor

We Also Have: 40 Wheel Combo Trailer 30 Ton Tow Trucks 40 Ton Sliding Boom Recovery Unit Air Cushion Recovery 30 Ton Winch Tractors

Now hiring Class 1A Heavy Duty Tow Truck Drivers. Will Train. Fax 780-846-0005 Email: actiontowinglloyd@hotmail.com

PIPELINE NEWS March 2013

BRIEFS NEB approves abandonment cost estimates for large pipeline companies

The National Energy Board has issued its Reasons for Decision for the abandonment cost estimates of 12 of the 13 large pipeline companies that it regulates. The board approved the cost estimates as filed subject to numerous directions specific to each company. For example, it directed companies to account for the removal of 20 per cent of medium and large diameter pipe on lands in the categories of “agricultural, cultivated” and “agricultural, non-cultivated” for the purpose of estimating their abandonment costs. The board also directed companies to adjust their cost estimates to account for monitoring and remediation for as long as the pipelines are in the ground. As stated in a previous decision, the board has determined that landowners will not be liable for the costs of pipeline abandonment. Any costs associated with the abandonment of a pipeline are the responsibility of the pipeline company. As the next step, the companies are required to re-file abandonment cost estimates by April 16, 2013, based on the board’s decision.

Briefs courtesy Nickle’s Daily Oil Bulletin

Lakeland College president, Glenn Charlesworth is delighted to accept this $1.5 million cheque from Cenovus Energy representaƟve Jennifer Pendura. The money will go toward construcƟon of a new $17.5 million Petroleum Centre at the Lloydminster campus and for scholarships for students in oil and gas programming. This is the largest private donaƟon made to the Lakeland College Centennial Campaign.

Cenovus feted for $1.5M gift to Lakeland Story and photos by Geoﬀ Lee Pipeline News

water treatment equipment, a turbine generator, two simulation labs and training spaces. A planned steam assisted gravity drainage (SAGD) simulation lab will be named the Cenovus Energy Lab in recognition Lloydminster – It’s a pretty good day. Those are the words Kara Johnston, director of energy proof the company’s donation to energy training. The list of speakers included Lloydminster Mayor Jeff Mulgramming at Lakeland College, spoke to end her thank you speech to Cenovus Energy for donating $1.5 million to the ligan, 3rd class power engineering student Scott Meakes and Cenovus spokesperson Jennifer Pendura who presented the Lakeland College Centennial Campaign. The Cenovus donation will go toward the construction a cheque to Lakeland president and CEO Glenn Charlesworth. “Cenovus Energy’s contribution today will help us build a $17.5 million Petroleum Centre in Lloydminster, which when completed, will enable Lakeland College to expand oil and gas modern facility where we can substantially increase the number programming. A portion of the donation is also earmarked for of students and prepare for a promising career in the energy sector,” said Charlesworth who wore a wide smile on his face. an endowment fund for new student scholarships. “I am also pleased that Cenovus has allocated a portion of “This has given us a platform to launch expansion to our this, not just to the building, but to an endowment for student programming,” commented Johnston. “We can reach more students; we can renovate and expand awards. “As the number of energy students increases, so too does the our facilities and form a great partnership with companies such need for more scholarships to assist these students. This helps us as Cenovus.” The cheque presentation and speeches on Jan. 30 also to bridge the gap and creates accessibility.” Charlesworth also said Cenovus provides practicum placehelped Lakeland fundraisers end a chicken and egg debate on whether to risk construction now without full funding or raise ments for Lakeland energy students, assists with course development, serves on an advisory committee and provides guests the money first. “Industry has told us they cannot wait four or five years for speakers. “We are excited to be working with such a great company graduates. They need them now. There is a huge shortage now,” and create a facility that will transform our future,” he added. said Phil Allen, who is vice-president of fund development. The college currently serves about 300 full-time and part“We are going to construct the building and we are going to time and online students in its oil and gas programming each raise some money, and hope at the end they both meet. “Cenovus, today, is a huge example of helping us to meet year. Charlesworth said a recent survey of 2010 energy program that end goal of the finances and the construction coming tograds revealed every single graduate was employed in the ingether at the same time.” The new Petroleum Centre will house a large power en- dustry. ɸ Page A10 gineering and heavy oil lab equipped with three steam boilers,

• EXHAUST • BRAKES • SHOCKS • FRONT END • WHEEL ALIGNMENT • SUSPENSIONS • AB & COMMERCIAL INSPECTIONS

PIPELINE NEWS March 2013

Co-op ReÀnery Complex sees BRIEFS EOG third Àre in 16 months corrosion. The second, which occurred in May 2012, involved By Brian Zinchuk Regina – For the third time since October 2011, a fire has bearings in a pumphouse. It did not result in injuries. The third fire will have more impacts on production than occurred at the Regina Co-op Refinery Complex. The most recent fire occurred in a coker unit pumphouse in the second fire. “We still don’t know what the cause is. We won’t for awhile,” Section II of the refinery at 12:20 a.m. on Monday, Feb. 11. Regina fire, police and ambulance services responded, but Huard said. He added that were kept on standby the complex had outside the facility, The sun sets on the Regina Consumers’ Co-operaƟve ReĮnery Ltd. not seen an incias Co-op’s own staff complex on a cold February evening. dent of any kind were able to contain File photo for 20 years prior to and extinguish the the 2011 incident. fire by 1 a.m. “They are very unVic Huard, Corelated incidents,” op vice-president of he said. corporate affairs, said “A catastrophic there were no injuscenario in Hollyries, and an all-clear wood fashion just was sounded after 2 can’t happen,” aca.m. that day. cording to Huard. “We’re now in The company the process of inveswill look at integtigation,” he said in a rity and maintenews conference the nance, he said. Cofollowing afternoon. op is continuing There was a low to implement the number of people at 19 point program the complex at the in response to the time. The fire did not 2011 fire. result in a full shut“Are we takdown. “We are down ing a hard look at approximately 10,000 our processes? You barrels per day of probet we are,” he said, duction,” he said. having pointed out The incident afthere was a “flawfected an asphalt proless responses and cessing unit, which quick containment” was one of 33 proto the most recent duction units in the fire. complex. There was no “It was an asphalt evidence of human fire. There is evidence error in the previthere may have been ous two fires, but an explosion, but we they don’t yet know don’t know for sure,” the cause of this Huard said. one. “We’re not anticWhile the ipating an impact on company has resupply,” he said, refcently completed erencing diesel shortits multi-year, ages that occurred as multi-billion dollar expansion, it is still finishing up some of its a result of the 2011 fire. “We’re disappointed this is the third fire in 16 months,” he “revamps.” “There are still three process units in the revamp being said. “One fire is too many.” The first, which caused several injuries, was caused by pipe worked on,” Huard said.

plans on 400 wells

In 2013, EOG Resources Inc. plans an active crude oil and liquids exploration program focusing on increasing the recovery of hydrocarbons in existing plays and pursuing new greenfield opportunities. The majority of EOG’s capital expenditures will be directed toward its two key crude oil assets, the Eagle Ford and Bakken/Three Forks. The Eagle Ford, where EOG estimates it will drill and complete approximately 400 net wells, is expected to contribute the largest share of company production growth in 2013. EOG is a significant player in the Waskada play. In the North Dakota Bakken core and Antelope Extension Bakken/Three Forks, plans are to test additional downspaced drilling patterns. In its southeastern New Mexico horizontal Leonard/West Texas Wolfcamp shale plays, EOG anticipates operating a moderate drilling program in 2013. Drilling activity in the new Delaware Basin Wolfcamp play is expected to ramp up over the next two years to achieve significant production growth for EOG beginning in 2015. Very minimal dry gas drilling activity is expected in 2013.

Briefs courtesy Nickle’s Daily Oil Bulletin

“Industry Leading Quality and Service Since 1987” 6150 - 76 Avenue, Edmonton, AB T6B 0A6

Phone: 780-440-2855 Fax: 780-440-1050 Email: brotherscoating@shaw.ca www.brotherscoating.com

Specialists in Internal & External Coating Applications Epoxy Linings • Metalizing • Fiberglass • 100% Solids Epoxy Pipe, Bends, Tanks & Vessels

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

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

Another edition of the Railway News Another month goes by and even more of our pages are dedicated to crude-by-rail. You would think this paper would be changing its name to “Railway News.” We’re now coming close to the point where one in eight barrels of Saskatchewan oil is being shipped by rail. In January it hit 11 per cent crude-by-rail, and by the time you see this paper, there’s a good bet that number will hit 12 per cent. Canadian National Railway is looking at doubling its carloads of crude-by-rail this year compared to 2012, according to spokesperson Mark Hallman. In southeast Saskatchewan, we had the announcement by Ceres Global Ag Corp. of their intentions to go ahead with a 75,000 barrel per day rail loading facility at Northgate. If fully built out to that spec, it will be the largest crude-by-rail facility in the province. That would eclipse Crescent Point Energy Corp.’s 40,000 bpd facility recently built at Stoughton. The Ceres folk have benefitted from the Stoughton experience, since they own one quarter of Stewart Southern Railway, the shortline on which the Crescent Point facility is located. The Northgate project has a few interesting points that differentiate it from other crude-by-rail facilities in the province. First, it’s expected to be larger. It will have its own loop track. But more importantly, it’s on a third rail line, and we don’t mean a Canadian shortline like Stewart Southern Rail. All Canadian shortlines eventually feed into either Canadian National or Canadian Pacific’s mainline networks, and indeed were once part of one or the other. The Northgate site is on the BNSF system. That brings a whole new dynamic to the equation. It will mean that shippers and marketers have new destinations they can access, and a competitor on price. Sure, once a car is on rails, it can theoretically go anywhere. But there’s a reason why rail lines work within their own networks. BNSF is now by far the largest shipper of crudeby-rail on the continent, thanks to the explosive

growth of the Bakken play in North Dakota. When the pipeline system couldn’t keep up to drilling, the railroads stepped up, and the one that has stepped up the most is BNSF. Canadian Pacific is a player in the North Dakota Bakken, too, but not nearly to the extent that BNSF is. This development means that Saskatchewan and Manitoba producers will be able to substantially broaden their horizons, and hopefully, make a few more bucks while doing it. It will put pressure on CN and CP in their performance and in shipping rates. The importance of Northgate cannot be understated. A few months ago Torq Transloading president and CEO Jarrett Zielinsky spoke with Pipeline News about its recently opened Southall location near Bromhead. “We are looking at a full build-out of that facility. We feel we’re easily within the 15,000 barrel a day range. Currently we’re at 2,000 to 4,000 barrels a day. The demand continues to grow. People are looking at moving unit trains out of there. “We’re looking at making that site big enough to accommodate 100 to 120 car trains.” Yet for others, rail is nice to have, but far from the be-all and end-all. Husky Energy CEO Asim Ghosh told a fourth quarter conference call, “In our case, we see rail as a bit of a stop-gap solution to fill in the blanks where you’ve got blanks. “So it’s a solution around the edges, and we are looking at expanding our rail capabilities, but even after we’ve done that, it will be a relatively small part of our total picture. “Rail is more flexible, but materially more expensive, so if you have the pipeline connectivity, pipeline is always the preferred way to go.” No doubt it helps if you have your own major terminal on the Enbridge mainline at Hardisty. Crude-by-rail may be the new thing, but there’s one thing we can’t forget. Even if we hit the one-in-eight barrels being shipped by rail, that means seven-in-eight are still going by pipeline. We’ll be keeping our name for a little while yet.

PIPELINE NEWS March 2013

From the Top of The Pile

OPINION

By Brian Zinchuk

Pipeline delays will mean more deadly derailments The similarities are striking, and ominous. A year almost to the day after a train hauling crude oil was derailed by a pickup truck near Glen Ewen, a grader took out a train loaded with crude oil at Paynton. This, unfortunately, is likely to become a common occurrence, including the fatalities that typically come with train versus vehicle accidents. At approximately 11 p.m. on Sunday, Jan. 22, 2012, a 19 year old man left a drilling rig one mile south of Highway 18. The rig was working approximately one mile southwest of the two Glen Ewen gas plants. Travelling northbound on a grid road, he struck the black tanker cars roughly one-quarter of the way into the Canadian Pacific train. The front end of the truck was destroyed, but everything from the firewall back escaped harm. Approximately 17 cars and two engines remained on the track from the front of the train. The next 22 cars jumped the track, with several ending up roughly perpendicular to the eastbound direction of travel. The remainder of the cars of the unit train stayed on the track. The impact of the collision caused 22 cars containing light crude oil to derail. Approximately twothirds of the contents of one car spilled. The young man was lucky to survive. A year later, on Jan. 24, 2013, an eastbound train carrying crude oil struck a grader at a CN crossing on a grid road at Paynton around 9 a.m. The collision killed the grader driver and derailed 16 tank cars. At the time, CN spokesperson Warren Chandler said the initial indications were that four, and perhaps five, tank cars were “leaking product,” but he couldn’t

determine how much. Two collisions, two different locations, and two different railways, yet the incidents were remarkably similar. One was CP, the other CN, so the “blame,” as it were, didn’t fall on just one of the Class 1 railways. But how does one blame a train, anyway? Don’t they, in all circumstances, have the right-of-way? They can’t exactly stop on a dime. So one must conclude that these collisions were caused by the operators of the vehicles that hit the trains. And therein lies the problem. For generations, pipelines have been considered the safest way to transport large volumes of fluids, like oil, over vast distances of land. They are all buried a minimum of one metre deep. One cannot easily drive a grader or pickup truck into a pipeline. You have to purposely be digging in order to strike one. As anyone who has taken a ground disturbance course knows, you are always to assume there is something underground you might hit, so you need to daylight any lines before digging. But pipelines have become the proxy fight for the environmental movement, who have targeted them as a way to choke off oilsands oil production, seen as “dirty oil.” Their actions have caused the delay of the proposed Keystone XL pipeline and threaten the proposed Northern Gateway pipeline. With production on the rise, oil producers have been flocking to rail as an alternative. The Ministry of Energy and Resources told me in January that 11 per cent of Saskatchewan’s oil production is now being shipped by rail, and that

number is going up one percentage point every time they look at it. The result is more trains hauling more crude oil. If Keystone XL had been built by now, as originally planned, it is quite possible neither of these collisions and derailments would have occurred, since the industry likely would not have turned to rail shipments as much as it has. As it stands now, we will see crude-by-rail increase at a phenomenal rate as it allows producers to get a better return on their product, serve markets that aren’t easily connected to the Western Canadian pipeline system, and have an alternative should problems arise with the pipeline system. Quite possibly either of these two derailments could have happened anyway. The trains could have been hauling potash, grain or coal, but they weren’t. To ship the equivalent of Keystone XL’s daily capacity would require the equivalent one train 25 miles long every day, or in other words, a whole lot of unit trains. Those are trains that can derail anywhere from their point of origin to their destination. The grim reality is the environmental do-gooders ﬁghting the pipeline ﬁght is that people will die, driving into trains that wouldn’t otherwise be there. That’s a horrible, sobering thought, but one they should think clearly about. There are repercussions to this debate – deadly ones. Brian Zinchuk is editor of Pipeline News. He can be reached at brian.zinchuk@sasktel.net.

Lee Side of Lloyd By Geoff Lee

Double standard for pipeline critics It would seem that if you plan to build a pipeline or a major energy project in your own province or jurisdiction, the project is a hailed as an economic triumph and there is little opposition from environmentalists. However, as soon as a proposed pipeline crosses provincial or international boundaries, gloves usually come off and the accusations fly about lack of respect for the environment or the concerns of affected residents including Aboriginals. The hypocrisy can be seen in British Columbia where Premier Christy Clark recently likened the province’s LNG development opportunities near Kitimat to that of the Alberta oilsands. Her government is forecasting the start-up of one LNG export facility in the area by 2015 and three by 2020. There has been nary a word spoken about environmental impacts or complaints from First Nations. Politicians were keen to point out that the Douglas Channel Energy LNG project which is under construction has Kitimat’s Haisla Nation Aboriginals as business partners. When it comes to the proposed interprovincial Enbridge Northern Gateway pipeline to Kitimat and the Kinder Morgan’s Trans Mountain expansion to Vancouver, Clark has been anything but welcoming. Last October, her government announced several conditions under which B.C. would allow projects like the Northern Gateway pipeline and the Trans Moun-

tain expansion to go ahead. Clark voiced her concern for the environment, consultation with First Nations and getting a “fair share” of the economic benefits for B.C. as considerations before the projects proceed. There were no complaints from Clark when TransCanada Corporation was awarded a $5 billion contract on Jan. 23 to build a natural gas pipeline from northeastern British Columba to the Pacific Northwest LNG export facility near Prince Rupert. U.S. environmentalists continue to make TransCanada’s proposed Keystone XL pipeline a whipping boy even though Nebraska Governor Dave Heineman approved the reroute of the pipeline to avoid environmentally sensitive parts of his state. Where were these environmentalists when the Gulf Coast pipeline, the southern leg of the Keystone XL pipeline – built entirely within the U.S. – was approved with construction well underway? The proposed Keystone XL, the Northern Gateway and the Trans Mountain pipelines should simply be judged as business projects that are required to meet regulatory standards for permit requirements. All three of these projects fall under the “don’t look a gift horse in the mouth” category for the recipients of the economic benefits they will provide. There are no real key differences between the economic benefits and the environmental issues of pipelines that cross provincial or international boundaries from pipelines that don’t, other than the scale of

them. It’s a lot easier to criticize a project and be environmentally sanctimonious if the pipeline originates elsewhere and needs your approval. Because of the criticism from Clark and Americans about these Alberta-based pipeline projects, all three will likely be built to standards that surpass those applied to any existing pipeline project in North America. TransCanada has agreed to a total of 57 special conditions for the construction, operation and maintenance of Keystone XL that will make it safer than typical pipelines built in the U.S. 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. Similar higher standards will likely apply to the Northern Gateway and TransMountain projects. These two pipelines will pump millions of dollars and jobs along routes beneﬁting British Columbians whose premier that likes to bites the hand that is feeding them this wealth – Alberta. It’s the same thing for the Keystone XL. Maybe TransCanada, Enbridge and Kinder Morgan should reroute all three lines right across Canada to the Atlantic region that would welcome the beneﬁts more than critical neighbours to the west and south. Now’s that’s a national energy policy to which few Albertans would object.

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

PIPELINE NEWS March 2013

Shifting Gears

One Woman’s Perspective on Life, Liberty and the Pursuit of Land Locations By Nadine Elson It was the coldest day of the year. The thermometer registered into the minus 30s but the weather man said it was -47C with the wind chill. It was two degrees colder than the day before. It was cold; damn cold. I wasn’t working in the patch that day, and judging by all the men at the local workwear store, many of them weren’t either. Most service rigs do not work in extreme cold. By any company’s standards, two days of -45C and colder is enough to shut down operations. The clerk conﬁded that the two days had been extremely busy despite the cold. The men had been buying mostly cold weather gear like socks and underwear, she said. “Oh, and boots,” she added. I nodded sagely, as I handed her my boots to ring up. “I like the yellow color,” she said. “It’s very spring-like.” I have known the value of good boots (and shoes) for years. As a child, I started oﬀ each new school year with a pair of new shoes that were sized for some expected growth. When we went on an

Giving winter the boot extended holiday when I was a teenager, my siblings and I were told by our globe-trotting parents to pack comfortable shoes, because as my mother said, “If your feet hurt, your whole body hurts! And you cannot think of anything else but your feet.” One of the prerequisites of working in the patch is proper clothing and footwear. You cannot even get out of the truck on a lease if you are not wearing steel-toed footwear. In preparing for my new hot shot driving position several years ago, I had purchased the requisite CSA rated leather tieup boots. They were fine in the fall when I started. It didn’t take long to notice that most of the fellows on the rigs were wearing a different kind of boot, though. And as fall turned into winter, I knew that I needed those boots! My feet were freezing in the leather boots. The leather boots were slippery when wet. My mother was right. I couldn’t think of anything else but my feet when they hurt, especially when they were cold and wet. So I got over the sticker shock and bought the boots. The salesman had said something about being Vulcan Neoprene and oil resistant, but I perked up when I heard rated to -40C. In addition, he added liners could be worn for added warmth. “Sold,” I said, mimicking my favorite local auctioneers, “to the lady in the blue coveralls!” The man wasn’t lying. The boots were great; they were warm in cold weather, and stable in wet weather on both slippery rigs and trailer decks. Being slip-on and not tie-ups, they were easy to put on and take off, even with 20 pounds of mud

on each boot as I found out later that spring when conditions got muddy. In addition they were amazingly comfortable to walk in. I wore them all the time, winter and summer, while working. In summer, once off the lease, I removed them and wore Crocs in the truck, while driving. When the next spring arrived and the rains started coming, I naturally thought about boots. Oilfield boots would have sufficed, but they looked silly and pretentious without the coveralls. Then I discovered that rain boots had become fashionable. They came striped, with checks, in plaids, and with flowers. I was in love. I bought three pairs- red and black checked, blue flowered, and black and blue leopard printed. The rains came. And came some more. I didn’t care. So this week, when the television newscaster predicted “above normal spring runoff for Saskatchewan,” I didn’t get excited. I am ready. My oilfield boots are still rain worthy, but I have a new pair of stunning rain boots in lovely yellow color just waiting for the flood season. They are short slip-on boots with a faux tie. I, too, like the colour. It is very spring- like. I am more than ready to give winter the boot. 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 efficiently. Contact her at shifting.gears.hotshot@ gmail.com with comments or questions.

Are You Covered? By Harley McCormick

Every time a welder makes a spark there could be liability issues Editor’s note: Bad things happen, and that’s why there’s insurance. The particular needs of the oil patch when it comes to insurance is the topic Harley McCormick, an insurance broker with ten years in the industry in Virden, Man,. will discuss in our new column, “Are You Covered?” As the owner of a welding business, you already know how difficult and costly it can be to obtain the insurance coverage you require. With increased safety and regulation (ISNet anyone?), the insurance policy you own allows you access to work sites while protecting your business in the event of a loss. Most of us understand the property side of insurance, as we can see the assets insured and know that we need the coverage. The questions I most often get are centred on other coverage included in policies, namely business interruption and commercial general liability. Business Interruption Business interruption insurance will cover your earnings in the event of a direct loss that causes a temporary shutdown in operations. Mobile welders can generally be back in operation quite quickly, as you can get the new truck and welder put together in a short period. Welding shops and fabricators, on the other hand, may be “out of business” for some time as they construct a new shop and order new equipment. If you cannot find a temporary location to continue operations, it is not uncommon to be out of business for upwards of 18 months. Going without income for that time will bankrupt new businesses and put an established business in a real difficult

situation; the mortgage and taxes are still due, key employees are leaving for the competition, and as the owner you are not making any income. Worse yet, customers still need your services; they are now visiting the competition and developing new relationships. Business interruption coverage is available to ensure that you can continue to pay bills and retain key employees. Also, the coverage will remain intact for a predetermined period once back in business, to ensure that income levels have returned to preloss levels. When a business interruption claim is made, the insurance company will ask for a history of receipts in order to determine the amount of income your business is making and has made in the past. With the assistance of an accountant, projections are made to determine the income your company would have earned if not for the loss. Ensuring you have up-to-date and accurate internal accounting will make your life much easier. Commercial General Liability (CGL) The rise in the number of legal professionals in the workplace has contributed to an increased demand to pursue any infraction or error of human judgment. At every seam and joint, there is a potential for error resulting in serious injury or death; every time a mobile welder sends a spark, there is a potential for thousands of dollars in damage to a farmer’s crop. To ensure the protection of the business and its owners, we must carry commercial general liability. A liability policy will protect you not just from

judgements issued, but will also provide for the costs of legal expenses in the event of a claim. The insurance company will retain the right to settle at their discretion and cost. Most policies are issued based on work being done in Canada only; if work is done in the United States or if fabricated items are exported, you must advise your broker. CGL is rated based on gross receipts and the type of welding being done. A small fabricating shop doing $250,000 in annual receipts has much less exposure to potential loss than a large mobile workforce doing $5,000,000 in receipts. Exposures such as hot tapping can again, increase liability costs; the frequency of loss is very low, but if a loss were to occur, it would be severe (potentially millions). Designing and implementing a safety program, becoming COR certiﬁed, and hiring red seal journeymen can go a long way in presenting your business risks to insurance companies. Having multiple insurance companies wanting to do business with you increases the ability of your broker to ensure that adequate coverage is purchased at the best available pricing. In addition to the coverages named above, there are many other options available to welding contractors. Feel free to talk with other welders about your insurance, but do remember to discuss, in detail, your operations with your insurance broker. They will be sure to set up a policy that meets your speciﬁc needs. Harley McCormick can be reached at hmccormickfca@mymts.net.

PIPELINE NEWS March 2013

Planned $90 million facility includes largest crude-by-rail facility to date in Sask. ɺ Page A3

shipment capabilities. “We’re targeting 25,000 barrels per day. That could flux – a little less, or a In North Dakota, some crude-by-rail loadlittle more. It will be ramped up over a period of ing sites have massive storage tanks, including time, from fall through spring.” the BNSF facility at Stanley. This will not be the They would like to have the oil facility runcase. There will be a mixture of smaller and larger ning later this year. “We’re hoping for mid-fall, tanks, depending on what the clientele plan on like October. If we can do it sooner, great.” using. The eventual plan is to build up to unit train Initially oil will be loaded on the west side of capacity. BNSF runs its unit trains larger than the facility. “As we grow, we will put in the loop, Canadian rail lines, at 120 cars each for an oil with grain on the interior and oil on the exterior,” train, he explained. They also run cars at 650 to he said. 680 barrels each, whereas in Canada 600 to 650 “We are currently in negotiations with a seems to be the norm. number of companies,” Detlefsen said regarding Currently at Stoughton, Crescent Point is oil shippers. “One or two might involve piping shipping 80-car trains utilizing Stewart Southern from local batteries.” Rail. He expects that to build up to Canadian Who those might be, he can’t say, however. Pacific’s 104-car standard soon. “Our discussions are nearing completion The grain facility is expected to handle with a number of Canadian energy companies roughly 40 million bushels at peak, with a storfor take-or-pay oil transloading contracts at the age capacity of approximately two million bushes. Northgate facility,” said Detlefsen. The design has been in flux, Detlefsen said. As for the possibility of bringing oil into the Part of the reason the company chose Northfacility by pipeline from south of the border, the gate was its access to the BNSF Railway, proissues surrounding the Keystone XL pipeline viding a new shipping alternative for Western could be problematic. Detlefsen said they are Canadian farmers and energy companies. trying to avoid the necessity of a Presidential “We could get a large enough site to do the Permit. development,” he said. “At the moment, we’re contemplating oil by It’s relatively isolated too, which is important. truck from the U.S. side,” he said. He noted the opposition in the city of Estevan to The company plans on building up its oil having a crude oil loading facility in the middle

of the city. There are about a half dozen residences on the Canadian side at Northgate. “As part of the purchase of the land, we agreed they could stay there for a period of time. That period will come to an end very shortly. We’re targeting April 1 for earthworks,” he said. Northgate lies on Highway 9, which used to be an important route for shipping potash to the United States. Trucks would haul it from Esterhazy to the American side of the border, where trains would be loaded. As a result, Highway 9 at the time was strengthened to handle the heavy weights of the southbound traffic. That should help with the increased grain and oil traffic that will soon flow to Northgate. “The Northgate hub is good news for Canada’s economy and particularly good for Saskatchewan and Western Canada. It will help ease the bottleneck of getting commodities – especially grain and oil – out of Saskatchewan and will provide a new and competitive option for shippers and exporters,” said Detlefsen. “Ceres is delighted to have Scoular as a partner on this project, and to be introducing a new, major buyer of grain to the Canadian market.” Premier Brad Wall tweeted on Feb. 5, “Thank you to Ceres Global Ag Corp. for a $90 million logistics hub in Northgate, SK. It will railcar our grain and oil to market.”

EQUIPMENT RENTALS

www.targetsafety.ca SERVICES Safety Coordinators Safety Supervisors Construction Safety Officers Safety Watch Spark Watch High Angle Rescue Teams Equipment Technicians Fit Testing Safety Training

Breathing Air Trailers Self-Contained Breathing Apparatus Supplied Air Breathing Apparatus Gas Detection Equipment Fall Protection Equipment Confined Space Entry Kits Air Purifying Respirators Fire Extinguishers Emergency Shower Units

... ON THE MARK WITH TARGET Bonnyville, AB (780) 826-5552 · Lloydminster, AB (780) 870-5350 · Red Deer, AB (403) 343-6900

A10

PIPELINE NEWS March 2013

Creating a skilled workforce ɺ Page A4 “There is no question the need for graduates of our full-time and part-time energy program will continue,” he commented. “We live in an area where the pool of resources is immense, but the pool of workers is having a hard time keeping up.” Cenovus views the beneﬁt of its donation for the Petroleum Centre as a way to meet its workforce needs in the region. The company needs skilled labour with the expansion of its Foster Creek steam-assisted gravity drainage project near Cold Lake. Upon completion, the expansion will bring the project to a future optimum capacity of 310,000 barrels per day of bitumen. “This centre will contribute to creating a skilled and vibrant workforce and one that will ultimately support our business, the Alberta economy, and also address the forecast shortage of skilled labour in the oil and gas industry,” said Cenovus spokesperson Jennifer Pendura. “At a time of increasing demand for skilled trades people, speciﬁcally power engineers, this donation will help us to meet our long term workforce requirements. “At the same time, it will allow Lakeland College to expand its heavy oil operations technician and heavy oil power engineering programs and increase the number of students they accept each year.” Pendura went on to say that the scholarship portion of the $1.5 million donation will as-

sist Lakeland with more career choices for young people and also help to bolster the future energy workforce. “These skilled workers are critical to us in the industry and they are the people who operate and maintain the facilities used to produce oil and natural gas,” said Pendura. “We are proud to work with such an excellent institution as they are the people that train the workforce of the future.” Cenovus played a major role in the development of the two-year diploma program for power engineering at Lakeland. The course includes steam-assisted gravity drainage (SAGD) and industrial ﬁre training and prepares students to challenge the provincial 4th and 3rd class power engineering exam for certiﬁcation through the Alberta Boiler Safety Association. “Our new program is designed by industry for industry. Cenovus’s stamp is all over our new diploma program,” said Johnston. “They have been with us every step of the way. They’ve made sure we have the very best access to information, the most current technology for our students. They have really opened the doors for our students.” Johnston singled out Cenovus as a long-term advocate of industry partnering with secondary educators such as Lakeland College to help ease the shortage of skilled labour facing the industry. “They have engaged their peers and competitors to become partners in this sector,” she said. “They have truly been pioneers when it comes

Phil Allen, vice-president advancement, alumni, fund development, markeƟng and enrolment, acted as master of ceremonies during the presentaƟon of a $1.5 million donaƟon from Cenovus Energy to the Lakeland College Centennial Campaign. Allen said the funding will allow construcƟon to proceed in sync with addiƟonal fundraising acƟviƟes.

to working with post-secondary education to ensure our graduates and our future employees have access to quality training, remarkable facilities and scholarship funding. “What we really want to celebrate today is what we can accomplish with this facility.” She said the Petroleum Centre will lead to increased student access to oil and gas programming, more full-time and part-time students, and more courses speciﬁcally tailored to the energy sector. There will also be more skilled workers to contribute to the success of the industry in the region.

PIPELINE NEWS March 2013

A11

Oilman of the Year a hard man to retire Â&#x201E; By GeoďŹ&#x20AC; Lee This yearâ&#x20AC;&#x2122;s Oilman of the Year is 73 year-old Jim Hunt who will be feted during the 46th annual Lloydminster Heavy Crude Open Bonspiel banquet at the Stockade Convention Centre the evening of March 15. No doubt, banquet MC Don Tarasuik will review Huntâ&#x20AC;&#x2122;s complete oilďŹ eld work history that began in 1960 when he was hired by Keithâ&#x20AC;&#x2122;s OilďŹ eld Services in Lloyd, building roads, dugouts and oil leases for Border Drilling and other drilling contractors. Hunt currently works part-time in sales and driving hot shot for CLL Holdings Ltd., the water and vac truck division of MidWest Truck Centre in Lloydminster. MidWest plans to spin oďŹ&#x20AC; the fast growing CLL as a separate business entity in the coming months. The company also plans to build a new building for CLL as early as this fall. Business owner, Leonard Conlon and Hunt's supervisor, Matt Kopp jumped at the chance to speak well about Hunt in the opening question in this Q and A banquet preview. PN: What are your thoughts about your employee Jim Hunt being selected as this yearâ&#x20AC;&#x2122;s Oilman of the Year? Conlon: I think itâ&#x20AC;&#x2122;s awesome. He deserves it. Heâ&#x20AC;&#x2122;s been at it a long time. Iâ&#x20AC;&#x2122;ve know Jim for over 35 years. Heâ&#x20AC;&#x2122;s been heavy in the oilďŹ eld all his life. Heâ&#x20AC;&#x2122;s dedicated his working life to the oilďŹ eld. Here, he is mainly in sales. He knows people and has a good personality. He deďŹ nitely deserves to be Oilman of the Year. Kopp: We are extremely honoured to have a man of Jimâ&#x20AC;&#x2122;s qualiďŹ cations and his past experience. Having Jim on our staďŹ&#x20AC; is huge asset all the way around, whether it be experience in the oilďŹ eld, experience with talking with people. That kind of experience is invaluable in anybodyâ&#x20AC;&#x2122;s company. Jim is very much in sales, which is a huge asset to us. Having done sales in the past and having had his own company and run companies for other people, you can imagine he knows a ton of people. PN: Jim, what was your immediate reaction when bonspiel chair John Stanyer called to tell you the news? Hunt: I didnâ&#x20AC;&#x2122;t really believe it. When John phoned and he wanted to know if Iâ&#x20AC;&#x2122;d accept it, I said of course Iâ&#x20AC;&#x2122;ll accept it, but I didnâ&#x20AC;&#x2122;t think it would ever happen to me. PN: Have you been working on your speech since you accepted the nomination? Hunt: The speech I am going to say â&#x20AC;&#x201C; it will be lucky if itâ&#x20AC;&#x2122;s ďŹ ve minutes. I am not one for the spotlight very much either. I would far sooner be in the background. I started in the oilpatch in 1960. Thatâ&#x20AC;&#x2122;s a long ways back, and I canâ&#x20AC;&#x2122;t remember what happened

yesterday sometimes let alone 50 years ago! PN: It would seem like retirement is a foreign concept to you at 73? What gives? The ďŹ rst time Hunt tried to retire was in January 2005 when he sold his J.E.D. Anchors (1998) Ltd. business. By August 2005, he went to work for ICI Solutions Inc. in sales and hot shot work then â&#x20AC;&#x153;retiredâ&#x20AC;? again in June 2010 before signing on with CLL in April, 2012. Hunt: I am into my 53rd year in the patch with a little time oďŹ&#x20AC;, but basically itâ&#x20AC;&#x2122;s been working 24/7. It is pretty hard to say â&#x20AC;&#x2DC;the heck with it, Iâ&#x20AC;&#x2122;m not going to work anymore.â&#x20AC;&#x2122; I canâ&#x20AC;&#x2122;t do that. I canâ&#x20AC;&#x2122;t sit around. When I decide to retire it will either be when Matt or Leonard come to the point where they donâ&#x20AC;&#x2122;t think I am contributing. It would be the same for me too, if I think Iâ&#x20AC;&#x2122;m not contributing then thatâ&#x20AC;&#x2122;s it â&#x20AC;&#x201C; Iâ&#x20AC;&#x2122;m done â&#x20AC;&#x201C; I am going to retire. Until that point in time, Iâ&#x20AC;&#x2122;d like to keep working as long as I think I am contributing. PN: What kind of hot shot work are you doing at CLL? É¸ Page A13

Oilman of the Year Jim Hunt

\ DOOHYLDWH JDV LQWHUIHUHQFH DQG JDV 7KH :HLJKWHG ,QWDNH 5RG ORFNLQJ URG SXPSV 3XPS *DV 6HSDUDWRU PD\ EH MXVW ZKDW \RXU +RUL]RQWDO :HOO QHHGV WR DOOHYLDWH JDV LQWHUIHUHQFH DQG JDV ORFNLQJ URG SXPSV

)RU PRUH LQIR RU WR GLVFXVV \RXU DSSOLFDWLRQ HPDLO -RH DW MRH#SUHPLXPDOV FRP

&KHFN RXW RXU :HEVLWH DW ZZZ SUHPLXPDOV FRP

FULL FLUSHBY & PRESSURE SERVICES BODY VACS, STEAMER/PRESSURE WASHER SERVICES SALTWATER DISPOSAL PUMPING SERVICES

24 HOUR SERVICE Ken McConnell Owner/Operator 24 HR Dispatch: 780-205-9001 Mike #: 403*11*29001 Fax: 306-397-2697 Box 238 Edam, SK rackenent@hotmail.com

A12

PIPELINE NEWS March 2013

ATV / SLED DECKS Adjustable width decks also available â&#x20AC;˘ Easy to load & unload â&#x20AC;˘ Reversible ramp for your snowmobile & quad â&#x20AC;˘ High quality brushed aluminum requires no maintenance â&#x20AC;˘ Rounded headache rack â&#x20AC;˘ 4 side LED lamps â&#x20AC;˘ Super Clamps Included â&#x20AC;˘ Strongest (and longest) ramp system on the market

Re-usable and High Resale Value

Lloydminster Paint & Supplies Ltd. Daryl (780) 875-4454 or (780) 871-4109

â&#x20AC;˘ Our customers testify that we have the best looking deck on the market - and it is built to last

This yearâ&#x20AC;&#x2122;s Oilman of the Year is Jim Hunt who is working part-Ć&#x;me doing sales and some hot shot driving for CLL Holdings Ltd., the water and vac truck division of MidWest Truck Centre in Lloydminster. Hunt is pictured with a custom designed vac truck. The company has three vac trucks and one more is currently being built along with two tri-drives. The chassis set-ups are custom designed by MidWest owner Leonard Conlon.

â&#x20AC;˘ If a customer decides to purchase a diďŹ&#x20AC;erent pickup the deck can accommodate either Short & Long Box trucks

5628 - 44 Street, Lloydminster, AB

*(7 *5((1 :,7+ .(1,/:257+

.HQLOZRUWK &RPEXVWLRQ LV D SURXG GHYHORSHU PDQXIDFWXUHU DQG SURYLGHU RI SDWHQWHG 1DWXUDO GUDIW FRPEXVWLRQ HTXLSPHQW .HQLOZRUWK &RPEXVWLRQ KDV D SUH DVVHPEOHG FRPEXVWLRQ V\VWHP IRU MXVW DERXW HYHU\ DSSOLFDWLRQ LQ WKH 2LO DQG *DV LQGXVWU\ .HQLOZRUWK &RPEXVWLRQÂśV JUHHQ DQG FOHDQ WHFKQRORJ\ KDV DFKLHYHG D 5('8&7,21 LQ KDUPIXO %7(; DQG 958 HPLVVLRQV 7KLV WHFKQRORJ\ XWLOL]HV WKHVH ÂłSUREOHPÂ´ JDVVHV DV D SURFHVV KHDWLQJ IXHO UHGXFLQJ SURFHVV KHDWLQJ FRVWV ZKLOH UHGXFLQJ WKH WRWDO HQYLURQPHQWDO IRRWSULQW RI \RXU RSHUDWLRQ

7DNLQJ FDUH IRU WKH IXWXUH

$ 6

Â&#x2021; 5(/,$ < 7 % )(

,/,7

www.kenilworth.ca

MAIN OFFICE 1-780-853-5340 Kenilworth Combustion Main OfďŹ ce

Contact Heine Westergaard

1-780-744-3974

< Â&#x2021; ( ) ) , & ,

Toll Free 1-866-744-3974

Nomad Electric in Northern Alberta Contact Clint Ferriss 1-780-624-2447

FAX 1-780-853-5320

Pronghorn Controls in Southern and Central Alberta

Contact Stan Neu

< & (1

1-403-501-4895

CCR Combustion in East Central Alberta Contact Kevin Moan 1-780-872-0706

PIPELINE NEWS March 2013

A13

53 years still is not enough for Jim Hunt ɺ Page A11 CLL is having a very busy winter building ice roads in the Cold Lake Air Weapons Range area since November when cold weather set in for good. Hunt: We’ve got trucks in the bombing range and they’ve been running 24-hour shifts. I’ve been taking men up there. I have been doing hot shot for parts or people. We are building ice roads and ice bridges and flooding leases with water so they get on the lease with heavy equipment. PN: Are you going to be working full-time in sales and hot shot year round? Hunt: In the summer when I was hired, I was going to work Mondays, Tuesdays and Wednesdays, but in the wintertime, we are busy and I am working seven days a week some weeks. I usually work until around 11 or noon and I may go back for an hour or maybe I won’t go back at all. I kind of have my own time. That’s what’s good about those guys. I am not on a set schedule. I don’t have to be there for a full eight hours. PN: Can you describe what it was it like owning your own anchor business and what you did there? In 1991, Hunt and a two of his friends launched J.E.D. Anchors, installing anchors for drilling and service rigs. By 1996, they had seven anchor trucks and sold the company before Hunt bought it back in October 1998 and renamed it J.E.D. Anchors (1998) Ltd. Hunt: That was good. It was a lot of work. That was definitely 24/7. The anchors were an anchor with a piece of 7-inch flighting on it. The majority of them needed a 25,000 test pull. You had to go far enough into the ground where you hit solid ground to be able to get the specified test pull for the specs on a service rig. PN: What happened to the business when service rigs went freestanding in the next few years due to ground disturbance issues? Hunt: I rigged the trucks up to do environmental soil testing. PN: You must have experienced a lot of technology changes like that in your career that forced companies to adapt or fail? Hunt: The technology that they have now – they have all these horizontals and verticals – it’s unreal. They go down and hit the pay zone and kick off and go horizontal. PN: What do you do in your spare time away from work? Hunt grew up on a farm in the St. Walburg area and spent the late 1950s working in a sawmill near Chetwyn, B.C. and worked briefly in Uranium City before moving to Lloydminster in 1960. Hunt: I was raised on blueberries and wild meat that happened to walk through the yard! Every fall I go moose hunting. We go up around Slave Lake. We have a seasonal lot at Ministikwan. That’s a lake north of Paradise Hill. I pull the 5th-wheel up there before the first long weekend in May and it stays there all summer.

Lloydminster Citizens On Patrol Help with crime prevention

Be A Part Of The Solution For all our info and an Application to download Requirements are -Security check, training, and 5 hrs on patrol a month. Check Us Out At www.lloydcops.com

Hunt married Diane Lundell in July 1963 so that means, the couple will celebrate their 50th wedding anniversary this year on July 5. The Hunts’ son, Dean, and daughter, Corinne, and their ﬁve grandchildren and a great granddaughter will be expressing their best wishes when the big day rolls around. PN: Your resume notes you worked in Kindersley in the ’80s. What were your impressions of that experience? In 1974, Hunt went to work for Border Trucking in Lloyd who sent him to Kindersley in 1982 to drum up sales. In 1985, he bought a Kenworth with a Texas rig-up leased to Border Trucking to haul small shacks and 400 barrel tanks in the area.

He fondly remembers curling in the Kindersley oilmen’s bonspiel with Howie and Billy Cayford and Ken Krysta. He moved back to Lloyd in December 1989 to work for Kam’s Oilﬁeld hauling as a truck push on rig moves. He jokingly recalled that he didn’t take to the wide open spaces and the weather in the Kindersley area and explained his preference for trees. Hunt: I was born and raised in the bush. The coyotes are ﬁghting over a stick – there’s no trees down there and I like trees. The people down in Kindersley are all great people, but I didn't like the country. A light breeze down there is a 60 mph wind!

www.kelro.com

SEW EURODRIVE

A14

PIPELINE NEWS March 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

Lloydminster

Provost

Kindersley

Toll Free 1.888.745.4647

Drayton Valley Medicine Hat

PIPELINE NEWS March 2013

A15

LMG rolls out sub-arc welded tanks Â&#x201E; Story and photos by GeoďŹ&#x20AC; Lee

LMG uses a side beam welder aĆŠached to an overhead column for sub-arc girth welding of its oilÄŽeld tanks. The system is fully automated.

Vermilion â&#x20AC;&#x201C; Just about every oilďŹ eld product that Leading Manufacturing Group Inc. fabricates at its Vermilion plant requires welding. That goes for LMGâ&#x20AC;&#x2122;s complete line of heavy oil tanks ranging in size from 200 to 3,500 barrels and their new line of frac tanks. LMG has a staďŹ&#x20AC; of over 100 employees, most of them journeymen welders or apprentices, hired to build a variety of steel oilďŹ eld storage tanks for clients in Western Canada. â&#x20AC;&#x153;Mostly, we make 1,000-barrel tanks and secondly, would be 2,000-barrel tanks,â&#x20AC;? said company president Lee Gottschlich. â&#x20AC;&#x153;We can make a 3,000-barrel tank up to 40 feet high and 23-feet, six inches in diameter. The demand is good. Itâ&#x20AC;&#x2122;s still strong.â&#x20AC;? The company is putting the ďŹ nishing touches to its new 5,000 square-foot paint and blast shop in Vermilion. The shop is equipped with a blast media recovery system. LMG is also in the shovel-ready mode to start construction of a new plant in the town of Battleford, with a sod-turning date dependent on the market demand in Saskatchewan.

â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s just a matter of the workload predicating that we have enough work ahead of us to support the two shops,â&#x20AC;? said Gottschlich. LMG also fabricates a number of storage tanks, they call frac rings. They are used to store from 12,000 to 20,000 barrels of water for use in hydraulic fracking. A frac ring is basically a temporary storage tank with a rubber liner to keep the water in. They are manufactured in Vermilion using shielded metal arc welding, commonly called stick welding in the trade, and trucked out in 34-foot lengths. The tank components are pieced together in the ďŹ eld with mechanical connections. â&#x20AC;&#x153;The units are 12-feet high so it takes two, six-foot rings welded together,â&#x20AC;? said Gottschlich. â&#x20AC;&#x153;So we weld that six-foot plate together with sub-arc, and the rest is all stick welded because of the positions.â&#x20AC;? LMG deploys a variety of welds at the Vermilion facility including stick, some MIG for structural welds but mostly submerged arc welding for long welds on oilďŹ eld tanks. â&#x20AC;&#x153;We like sub-arc because of its penetration,â&#x20AC;? said Gottschlich. É¸ Page A16

One Call Will Supply It All

7+( /2*2 7(//6 7+( 6725< IURP UDGLRV WR ULJ PDWWLQJ WDQNV KRWVKRW WUXFN DQG WUDLOHUV OLJKW WRZHUV DQG JHQHUDWRUV ' ' 2LOĂ&#x20AC; HOG 5HQWDOV LV FDSDEOH RI VXSSO\LQJ MXVW DERXW DQ\WKLQJ WR WKHLU FXVWRPHUV RXW LQ WKH Ă&#x20AC; HOG

//2<'0,167(5

&$5/</(

5('&/,))

6:,)7 &855(17

7ROO )UHH )D[

3K )D[

7ROO )UHH )D[

3K )D[

A16

PIPELINE NEWS March 2013

Fully automated sub-arc has advantages ɺ Page A15 “You can run higher amperage and get a better penetration, and you get a very nice smooth, contoured type weld which is great for coating, and it runs continuously. “A machine is feeding the wire out. You are not stumbling with a handheld gun or electrode holder. “You can get ﬁxed MIG units, but normally a MIG is a guy pulling a trigger with the wire feeding. As long as he can stay in position, he can weld.” Gottschlich said another advantage of sub-arc is that it’s fully automated. It produces better quality and can churn out more production. “I would say if you were to weld 10 feet of a 10-foot plate joint, it would probably take you at least four times longer by hand,” he said. To weld a 2,000-barrel tank up to 23-feet, 6-inches diameter and 74-ft.

around with a sub-arc machine, the tank rotates to the head of the welder with the tank in the down flat position. By code, each joint seam on an oilfield tank is welded on the inside and the outside to get a sound weld. “With sub-arc, it flows in nice to the parent metal, and there’s no weld prep,” said Gottschlich. “You don’t have to grind the welds for coating or painting.” At the LMG facility, precise internal welds are made using a weld tractor and an overhead side beam welder is used for exterior welds. “The side beam is sitting overhead on columns. It’s a whole unit. It goes up and down and swings out, and all of the sub-arc components are all up top,” explained Gottschlich. LMG has 10 sub-arc machines for welding tanks as part of ever-evolving technology to keep up with the trade. “There is new technology, especially in the sub-arc power source,” said Gottschlich. “There are new power sources out that are much more operator friendly. “They’ve got new power sources now – from the old DC 600 – to kind of a more digital type of machine that has better control and is easier to run than the older ones. “The technology is always changing – going more robotics.” ɸ Page A17

Lee GoƩschlich, president of LMG, siŌs a handful of Ňux used in a sub-arc tractor.

PIPELINE NEWS March 2013

A17

Welder Sean Meyer uses a MIG spray welding process to weld together parts for oil tank ladders.

Éş Page A16 Gottschlich said welding is all about the integrity of the tank, so its importance canâ&#x20AC;&#x2122;t be underestimated in the manufacturing process. â&#x20AC;&#x153;You can ďŹ t it together, but if itâ&#x20AC;&#x2122;s not welded, you donâ&#x20AC;&#x2122;t really have anything until itâ&#x20AC;&#x2122;s welded out without any leaks,â&#x20AC;? he said. For quality control, all welds are air-soap tested with air pressure and a soap ďŹ lm over the weld to detect any leak bubbles. Other welds may be subjected to X-rays, but Gottschlich said machinemade welds are usually well made. â&#x20AC;&#x153;We might get a pin-hole from a gas pocket or something,â&#x20AC;? he said. â&#x20AC;&#x153;The key is getting the right voltage and amperage to get the right penetration. The proper penetration and weld proďŹ le is all a function of the amperage, the voltage, and the speed of the tractor.â&#x20AC;? Gottschlich said there are industry formulas for each welding application

and a contract specialist hired by LMG makes sure everyone is doing it right. Having well trained welders trumps everything else when it comes to quality control, as far as Gottschlich is concerned. â&#x20AC;&#x153;Thatâ&#x20AC;&#x2122;s our bread and butter â&#x20AC;&#x201C; the welders,â&#x20AC;? he said. â&#x20AC;?Until itâ&#x20AC;&#x2122;s welded and tested, you donâ&#x20AC;&#x2122;t have a product.â&#x20AC;? All of LMG welders have passed the ASME Section 9 test in the boiler and pressure code covering horizontal, vertical and overhead weld positions. Hiring qualiďŹ ed welders is a continual challenge for LMG in the current competitive oilďŹ eld labour market. The company continues to hire skilled welders through the Alberta Immigrant Nominee Program and the Federal Skilled Worker Program. â&#x20AC;&#x153;We have a very international workforce,â&#x20AC;? said Gottschlich. LMG also provides work practice to pre-employment welding students at Lakeland College in Vermilion and hires welding apprentices who are upgrading at the campus.

0LOOHQQLXP 2LOIORZ 6\VWHPV 7HFKQRORJ\ 0267 LV D PDQXIDFWXULQJ FRPSDQ\ PDNLQJ SURGXFWV IRU WKH RLO ILHOG VSHFLILFDOO\ IRU SURGXFWLRQ RI KHDY\ RLO E\ WKH DUWLILFLDO OLIW V\VWHP 3&3 DSSOLFDWLRQ 3URGXFWV PDQXIDFWXUHG DQG VROG DUH PDGH WR ,62 $3, DQG &6$ VWDQGDUGV

285 32/,&<

7R PDQXIDFWXUH SUHFLVLRQ TXDOLW\ SURGXFWV WKDW PHHWV RU H[FHHGV LQGXVWU\ VWDQGDUGV DQG FXVWRPHU UHTXLUHPHQWV ZKLOH FRQWLQXDOO\ VWULYLQJ IRU LPSURYHPHQW

Lloydminster OfďŹ ce: 6WUHHW /OR\GPLQVWHU :HVW $OEHUWD &DQDGD 7 9 % 0,.( 02+5 &(// &2/,1 5,1*8(77( &(//

Main OfďŹ ce:

We Are Environmentally Friendly MOST products are some of the most environmentally friendly solutions in the oil field services industry.

(OHQLDN 5RDG (GPRQWRQ $OEHUWD &DQDGD 7 % 6 7(/ )D[

A18

PIPELINE NEWS March 2013

No end to welding wait list at Lakeland

Second year welding apprenƟce JusƟn Eldering, who works for URS Flint in Wainwright, cuts some material in the Lakeland welding lab using an oxy-acetylene radiograph cutƟng torch.

Geoﬀ Lee Vermilion – Waiting lists have become a fact of life in all three years of welding apprenticeship training programs at Lakeland College in Ver-

milion and there is little relief in sight. Lakeland College expects to train at least 260 welding apprentices in the 2013-14 academic year which starts this fall at the Vermilion campus, but that won’t be enough to meet the

demand. “I fully expect we will be adding more to that too. It looks like we are going to be going up by 100 from the beginning of last year, maybe even more,” said Bert Samuelson, dean of trades and technology. “We may have to double classes in specific intakes.” Of the 260 welding apprentices registered next year, there will be approximately 100 first-year, 100 second-year, and 60 third-year students. “I think on the third year, we have some room to take on the possibility of another 20,” said department chair Roxene Lockhart. The Vermilion campus typically runs five, eight-week welding cohorts a year with 15 classes from September to mid-June. Lakeland began the current 201213 academic year with 156 welding seats requested by Alberta Apprenticeship and Industry Training (AIT). That number will climb to 238 by the end of June, with some extra classes added at the request of AIT. “This year, we have 112 first years,” said Samuelson. “Every class is full and we have a waiting list on all the classes. We increased the classes from 12 to 20 and we have one right now with 32 students.” There is a waiting list of 20 students for each of the final two training periods beginning in March

12: *$/9$1,=('

for first year welding apprentices and smaller waiting lists for second- and third-year classes. “If we have the facilities and the manpower to take on extra seats we will ask AIT for another class,” said Roxene. “Because we don’t have the room and the extra faculty to teach that class, we are not asking for those extra seats from March to June.” The Vermilion campus will be looking to hire extra staff to accommodate next year’s student increase in addition to installing 20 welding machines in unfinished welding booths. “That should take our capacity to the 400 or 500 mark,” said Samuelson. The welding lab is well used by apprentices, pre-employment welding students, area high school students in the career and technology studies (CTS) program, and to test B-pressure journeypersons. Finding qualified journeyperson instructors to accommodate the heavy usage is tough in a competitive field. “Right now, we are kind of maxed out. Our staff is maxed out,” said Samuelson. “Our capacity as a facility isn’t maxed out yet, but we are short of staff. This summer, we are going to ramp up and see if we can get some more staffing this fall. The demand for trades is just tremendous. ɸ Page A19

100% Canadian owned and operated

7+( 48,&.(67 :$< $5281' Suretuf Containments Galvanized Wall Suretuf Containments new galvanized wall packages utilize the same patented drop pin panel connection and slide in leg design as our original wall. The new single leg per panel design allows for an even quicker set up, while maintaining all of the value added features of our original wall, with the longevity of galvanized ﬁnished panels. The new design no longer requires speciﬁc left or right corner panels. All panels will pin for straight, 45 degree, or 90 degree corners. All Suretuf panels currently manufactured will pin to all Suretuf panels ever manufactured. NO DEAD STOCK.

P.eng. Stamped, Patented Design Free standing, zero ground disturbance • Slide in legs and pin together system No bolted legs or panels • Various heights & sizes • Quickest to assemble and re-locate No gaskets or caulking required • Top mount liner

CUTS DOWN ON TIME. Light weight & user friendly • C.O.R Certiﬁed set up crews are available Accessories: sting doors • crossover stairs • Geo-Textiles • All type & sizes of liner available. Fire retardant coating available

time saver

WE WILL BUILD TO SUIT OUR CUSTOMER NEEDS • OILFIELD • MINING • AGRICULTURE • WE DO IT ALL! Contact Greg Gessner:

Phone: (780) 875-0032 • Cell: (780) 214-7808 Fax: (780) 808-2273 • Email: greg@suretuf.com

PIPELINE NEWS March 2013 ɺ Page A18 “It doesn’t matter where you go, whether it’s Cenovus, Quinn Contracting, Husky, Imperial Oil, CNRL – everybody’s looking for people.” Samuelson said if you pick a town in Alberta, that’s where apprentices are coming from, especially those who work on tank farms. “When they set up a tank farm, it takes anywhere from 40 to 100 welders,” he said. “There is lots of work up north and Saskatchewan is still growing, and I think it’s just beginning. It will probably match Alberta in a few years. “Most of our apprentices work in the shops. It’s not just all in tank farms. There are support services as well. They’ve go to work on the rigs – anything to do with metal.” Lockhart also had the words oil and gas industry on the tip of her tongue to help explain the strong demand for welders and apprenticeship training. “We offer B-pressure too, and those numbers are so strong,” she said. “People are coming in on a regular basis getting recertified and also for initial testing in B-pressure.” “There are a lot of oil companies that need B-pressure welders.” Leading Manufacturing Group in Vermilion, a company that makes oilfield tanks, hires a lot of Lakeland’s pre-employment welders for the practicum component of their training. “Every chance we have, they’ll take them. They support us very well that way,” said Samuelson. The welding lab is also gearing up for the annual regional high school skills competition in trades on April 26. Included in the competition is welding. “The scopes have just been finalized and they are going out to the schools to register their students,” said Lockhart. The top two qualifiers from the region will go the 21st annual Provincial Skills Canada Competition in Edmonton in May. “We’ve had some real good competition in the past,” said Lockhart, who noted that students in Alberta’s Registered Apprenticeship Program excel. RAP participants are both full-time students and registered apprentices, dividing their time between an approved work site and their high school studies. “We’ve noticed students coming from the RAP and competing in our skills competition rate quite a bit higher because they have so much extra practice,” said Lockhart. “We see those students from Grade 12 coming right into apprenticeship training in the fall.” Lakeland will also be speaking about their trades courses with hundreds of regional high students during this year’s bi-provincial Try-a-Trade career expo to be held at the Lloydminster Exhibition Grounds May 1. Recruiting is now in full swing for all 2013-14 courses offered at Lakeland in Lloydminster and Vermilion. January to May is also is the busiest period for all apprentice training programs offered at Vermilion. “That’s when they all want to come,” said Samuelson. “In January and February, we’ve taken on 316 total apprentices. I believe that’s the highest we’ve had at one time.” The ability of Lakeland to keep up with the demand for apprenticeship

A19

Bob Cameron, welding department head at Lakeland College in Vermilion, demonstrates sub-arc welding. The equipment includes a Lincoln wire feeder and a Lincoln power source.

training is somewhat limited by the availability of local rental housing in addition to the campus residence. “Our residence is full here so we’ve gone to the community – anyone with a spare bedroom we’ve asked them to step forward,” said Samuelson. “That’s one of our restrictions here is to get enough places for them to stay. We are a big drawing card from the Hinton and Edson area just for the reason that we do have a residence on site.”

Troy Illingworth

cell: 780-205-1858

Tim Sharp

cell : 780-871-1276

Ofﬁce: 780-847-4666 Welders, Service Crews, Lease Mowing & Bobcat Service

Fax: 780-847-4661

Box 82 Marwayne, AB

Access Matting For Sale or Rent

Don’t Let The Weather Dictate Your Drilling Operations Our Mats: * 8’ X 14’ Solid Oak (Hardwood) 3-Ply Laminated Mats * Optional Interlocking Finger Available - Upon Request * A Beefy ‘187’ Carriage Bolt Pattern (Zinc Coated) * Green Painted Ends For Added Longevity To Cut Boards Eric Ducharme 204.724.0592 or Chris Allison 204.851.1709

Call Today for Competitive Prices For More Information visit us online @

A20

PIPELINE NEWS March 2013

Lakeland to train 238 welders by June

Welding instructor Owen Lakusta, in the red lab coat, demonstrates the results of a shielded metal arc welding (SMAW) Ĺ&#x2021;at groove weld process to ÄŽrst year apprenĆ&#x;ces in the welding lab at Lakeland College in Vermilion.

Vermilion â&#x20AC;&#x201C; The demand for three-year apprenticeship training in welding at the Vermilion campus of Lakeland College is on the rise in keeping pace with oilďŹ eld activity in the region. The trades and technology division at Lakeland expects more than 238 apprentices will complete their eight weeks of technical training by the end of 201213 school year in June. Instructor Owen Lakusta is teaching 32 ďŹ rst-year apprentices about techniques such as the oxy-acetylene cutting process and the shielded metal arc welding (SMAW) process during a Jan. 7 to March 1 session. â&#x20AC;&#x153;We are using positions such as ďŹ&#x201A;at, vertical and some ďŹ&#x201A;at groove welds, which in turn will create pressure welders,â&#x20AC;? said Lakusta during a tour of the trades and technology lab. â&#x20AC;&#x153;The trade requires teaching a certain amount of SMAW. Thatâ&#x20AC;&#x2122;s the starting point at this stage of the game right now â&#x20AC;&#x201C; getting them trained so they can go out there and be useful in the SMAW process.â&#x20AC;? Two of his students, URS Flint apprentices James MacKey from Bonnyville and Andrew Roisum from Cold Lake, expect to return to work on March 1 as better welders. â&#x20AC;&#x153;I am learning a lot about stick welding and procedure that I didnâ&#x20AC;&#x2122;t know. Itâ&#x20AC;&#x2122;s helped me out greatly. I am a better welder already after three weeks,â&#x20AC;? said Mackey who, at 47 is one of the oldest apprentices at Lakeland. â&#x20AC;&#x153;I moved out here about two years ago and decided to become a welder. â&#x20AC;&#x153;Like I was telling the dean, I was a boat builder and designer for 16 years. I decided I needed a change and welding is what I decided to change to. â&#x20AC;&#x153;Back in Ontario there is not very much going for industry â&#x20AC;&#x201C; I came west,â&#x20AC;? he said. â&#x20AC;&#x153;I started working as a labourer and an equipment operator, and I decided welding was more to my liking. It suited my creative side.â&#x20AC;? As a boat builder, MacKey said he didnâ&#x20AC;&#x2122;t know much about welding when he arrived in Alberta. â&#x20AC;&#x153;I just did a little bit making framework for boats, â&#x20AC;&#x153;he said. â&#x20AC;&#x153;That was a bit of stick welding and I wasnâ&#x20AC;&#x2122;t very good at it.â&#x20AC;? MacKey works at the URS Flint structural shop, where he fabricates modules for Cenovus Energy, Canadian Natural Resources and Devon Energy and he will be busy when he gets back. â&#x20AC;&#x153;We just signed a contract â&#x20AC;&#x201C; doubled the size of our yard. We are going to be busy for the next ďŹ ve years,â&#x20AC;? he said. â&#x20AC;&#x153;I donâ&#x20AC;&#x2122;t see it slowing down any time in the near future. Things are deďŹ nitely looking up for us.â&#x20AC;? MacKey commutes daily with a third year apprenticeship co-worker from Bonnyville where he just bought a house and does creative welding as a hobby. His message to his buddies in Ontario: â&#x20AC;&#x153;You are crazy to stay in Ontario. Come out west.â&#x20AC;? URS Flint does construction work for Imperial Oilâ&#x20AC;&#x2122;s $2 billion Cold Lake thermal expansion at Nayibe. By the end of 2014, it will produce 40,000 barrels per day of bitumen by the end of 2014 using cyclic steam stimulation (CSS). That suits 21 year-old Roisum just ďŹ ne since he moved to Cold Lake ďŹ ve or six years ago and has a place to live in a booming oil town where he was tons of welding work. É¸ Page A21

21( &203/(7( -2% Â&#x2021; 21( ,192,&( &25 &HUWLĂ&#x20AC; HG 3LFNHU (TXLSSHG 6HUYLFH &UHZV Â&#x2021; -RXUQH\PDQ Â´%Âľ 3UHVVXUH &:% &HUWLĂ&#x20AC; HG 5LJ :HOGHUV /DUJH 6HFXUH <DUG F Z )DEULFDWLRQ 6KRS Â&#x2021; 2LOĂ&#x20AC; HOG :HOGLQJ )DEULFDWLRQ Â&#x2021; $XWR&$' 'UDZLQJV 'HVLJQ (QYLUR 3URMHFW &RQVXOWLQJ ,Q KRXVH 5HQWDOV Â&#x2021; ' 6 &RQWDLQPHQWV Â&#x2021; 7DQN $OWHUDWLRQ 5HSDLU 7DQN 0RYLQJ &UDGOHV Â&#x2021; 3LFNHUV XS WR 7RQV Â&#x2021; 6WHHO 6DOHV Â&#x2021; %REFDWV %DFNKRHV 7UDFNKRHV *UDYHO 7UXFNV F Z 3XSV RU :DJRQV 1HZ :HOOVLWH &RPSOHWLRQV 5H FRPSOHWHV Â&#x2021; :DWHU ,QMHFWLRQ 3DFNDJHV Â&#x2021; -RXUQH\PDQ 3LSHĂ&#x20AC; WWHUV Â&#x2021; -RXUQH\PDQ &DUSHQWHU &RPSXWHUL]HG $OEHUWD 6DVNDWFKHZDQ % 4& 3URJUDPV

6(59,&( /7'

PIPELINE NEWS March 2013 ɺ Page A20 “As far as I know, we were kicking off the Nabiye project when I left to come to school,” he said. “There’s a lot of work going through, a lot of stuff getting done, a lot of people getting hired.” Cenovus is expanding its Foster Creek steam-assisted gravity drainage project near Cold Lake to a future optimum capacity of 310,000 barrels per day of bitumen. Roisum said a lot of people he knows are going for welding apprenticeships with the strong demand in the region for oilfield trades. “Just the area we are in, a lot of people are hiring. It’s good work and it’s good money. It’s just a good career really,” he said. Osum Oil Sands Corp. is also gearing up to begin the first phase construction of its planned 35,000 barrel per day SAGD and CSS Taiga projects near Cold Lake. At URS Flint, Roisum does general welding – mostly structural, in his words, and a lot of flux cored wire feed operations. “We build a lot of ‘mod’ buildings for out in the oilfield and a lot of pump shacks and small units like that,” he said. He said welding interests him because he likes working with his hands and he wants to be a journeyman. “Once I get my journeyman, I can go for my B–pressure, rig up, and start my own company and bill myself to a lot of the bigger stuff.” A three year welding apprenticeship includes a minimum of 1,500 hours of on-the-job training and eight weeks of technical training each year. At Lakeland, apprentices spend 50 per cent of their time training in the classroom and 50 per cent in the welding lab learning and practising a variety of techniques. “There are tests weekly as well at the end of the course, they are required to test on behalf of the apprenticeship,” said Lakusta. “The requirements in our course are all based on Alberta apprenticeship and industry training. They set the standards and of course we teach them on their behalf.” Lakeland can train up to 60 students at once in the lab and welding booths that have the latest equipment and a state-of-the-art ventilation system. “It excellent equipment, just using the cutting torch – excellent – they give you new tips when you need them; they get you new brushes,” said Roisum. “A lot of the stuff is brand new and up-to-date.” The lab is also used by other trades including boilermaker apprentices and

ApprenƟce Andrew Roisum works on trimming excess material for coping an S-beam using an oxy-acetylene cuƫng torch.

for career and technology or CTS studies in area high schools. “CTS students are scheduled to come in one week out of a 10-week period depending on the school division. It’s wonderful to see these high school students partaking in the trades,” said Lakusta. “I really encourage young people to get involved in a trade, whether it’s welding or electrical or carpentry. There’s a huge demand for the trades out there.” Lakusta is a Lakeland apprenticeship alumni and a journeyman welder with a B-pressure ticket.

2- 30 ton pickers with 69’ of reach, hi-way tractor, spreader bars, man basket, hi-boy and low-boy trailers

We Lift And Haul: • Pipe • Motors • Compressors • Motor Shacks • Water Transfer Units • Construction Rafters • "C" Cans

Well Service A division of Classic OilÀeld Service Ltd.

(780) 874-1044

ISN and Complyworks member & valid SECOR

Lloydminster, SK/AB Since 2006

A21

780.872.3618

Owned and operated by Kelly and Melissa Studer

“If We Can Lift It, We Will Do It!!”

A New, Better Way to Get Work Done Spruceland Mats, a locally owned company • Large Inventories Availible Near Edmonton, Estevan And Lloydminster • Work On Top Of All Soil Conditions With Spruceland’s Access Mats • Beneﬁts To Your Equipment, People And Your Bottom Line. • Pipeline Skids And Industrial Timbers • Factory Direct Pricing

Contact Trevor Davies for product and sales information: trevor@spruceland.ab.ca • (306) 342 7608 • www.spruceland.ca

A22

PIPELINE NEWS March 2013

Lloyd bonspiel to draw on its reputation Will they be back to defend their A-event Ɵtle at the 46th Lloydminster Heavy Crude Oilmen’s Bonspiel? Time will tell if the Champion 2 team of Sheldon Ballas, Richard Smyl, Bryce Lorenson and Gerry Croteau from Bonnyville registers to compete again at the Lloydminster Curling Club. One thing for certain; last year’s Oilman of the Year, Norval ChrisƟe, pictured on the leŌ, will be replaced in team photos by Jim Hunt, the 2013 Oilman of the Year. File photo

A proud stocking distributor of Canadian Manufactured Oil Country Tubular Goods (OCTG)

Global Steel Ltd. is a private corporation founded in 1990. From modest beginnings Global Steel has grown to become one of North America’s most trusted distributors of premium Canadian Manufactured Oil Country Tubular Goods (OCTG). Today, this Calgary-based company enjoys an unmatched reputation for product quality, innovation and customer service.

Global Steel maintains key relationships with several major domestic steel mills. Strategic alliances with each mill guarantee reliable and secure access to a full range of high-quality ERW OCTG, Seamless OCTG and Line Pipe products. We are committed to providing oil and gas producers with exceptional service, high-quality oil Àeld tubular goods and personalized logistical support.

One call to Global Steel provides customers with competitively priced products and efÀcient , safe dispatch to the job site. Global Steel currently maintains 18 inventory stock points strategically located across Canada. Each stock point is supported by veteran trucking companies specializing in oil Àeld transportation and providing 24 hours service. An unwavering focus on operating and service excellence is what separates Global Steel from everyone else. It is a commitment that shows in our products and services. At Global Steel we are focused on your business.

1600 Sunlife Plaza (West Tower), 144 - 4 Avenue SW Calgary, Alberta T2P 3N4

P: 403.237.8108 • F: 403.237.8392 E: info@globalsteel.ca www.globalsteel.ca

Lloydminster – Organizers hope it will be the same old, same old, positive outcome at this year’s 46th annual Lloydminster Heavy Crude Open Bonspiel as it has been in recent years. If the pattern holds, at least 72 teams will take part at the Lloydminster Curling Club March 13 to 17 with everyone swearing to come back for more fun next year. That’s the goal of bonspiel chairman John Stanyer who sends out all-points e-mail bulletins to teams each year to get their $440 registration fees in on time. “We are hoping for the same number again,” said Stanyer who usually crosses his fingers at this time of the year with the deadline clock ticking. It has been a similar story the past few years for other oilmen’s bonspiels, he said, despite a persistently strong oil and gas economy. “Hopefully, ours can play on our longevity and our reputation,” said Stanyer who is pitching the bang for the buck factor as a solid reason to enter this year. “The 46th year is not much of an anniversary,” he said. “Hopefully, we’ll do that with the 50th.” The entry fee is the same as it has been for the last few bonspiels covering the banquet, two breakfasts, a minimum of four games and good times to be had. The popular mixed banquet will be held at the Stockade Convention Centre March 15 when this year’s Oilman of the Year, Jim Hunt, will be introduced. There will be plenty of laughs in store at the banquet with the return of Don Tarasuik as the comedic master of ceremonies. More laughs are promised during the entertainment portion of the banquet as organizers have latched onto another comedian waiting to follow in footsteps of funnyman Tim Nutt in 2012. “I am not sure who it is. I usually don’t know who it is until two or three weeks before the event,” said Stanyer in mid-February. Somewhere in the crowd should be the Champion 2 team from Bonnyville that vowed to return this year to defend their A-event title. The Champion 2 visitors upset the favoured hometown Granite Oilfield Service rink skipped by Monte Armstrong who will be out to end their string of runner-up finishes in the A-finals. Armstrong, who is also president of the organizing committee, was unavailable for comment as curling was placed on the back burner as he was on vacation. Stanyer, meanwhile, let on that he is hanging up his broom permanently, blaming his knees for the decision. He said he wouldn’t know if it’s any easier as an armchair player since he has been too busy to even play that game this year. “There’s too much to do,” he joked.

Complete Machining for the Oil & Gas, Industrial & Agricultural Industries

24 HOUR SERVICE 6602 - 56th Street Lloydminster, Alberta

Phone

(780) 875-4780

• CNC Production Machining • Custom Machining • Design & Engineering Services • Downhole Tool Manufacture & Repair • Rig Repairs • Gas Compressor Machining Repairs • API Threading • B-Pressure Welding & Light Fabrication

PIPELINE NEWS March 2013

A23

Production rises from Lloyd thermals Â&#x201E; GeoďŹ&#x20AC; Lee Calgary â&#x20AC;&#x201C; Husky Energy continues to ramp up production from its heavy oil thermal projects in the Lloydminster area and its emerging resource plays in Western Canada. The Calgary-based company also expects ďŹ rst gas from its mega Liwan project in Asia in late 2013 or early 2014, and ďŹ rst oil from its Sunrise oilsands project in northern Alberta in 2014. Growth was top of mind for Husky CEO Asim Ghosh during a Feb. 6 fourth quarter conference call that covered operational highlights. â&#x20AC;&#x153;We realized signiďŹ cant progress across all of our business segments in 2012 as we continued to rejuvenate our foundation in heavy oil and Western Canada and advance the Liwan gas and Sunrise Energy projects toward ďŹ rst production,â&#x20AC;? said CEO Asim Ghosh. â&#x20AC;&#x153;Steady, consistent execution of the companyâ&#x20AC;&#x2122;s balanced growth strategy resulted in strong returns across the business. â&#x20AC;&#x153;Production was within guidance for the third consecutive year, averaging about 302,000 barrels a day.â&#x20AC;? Total oil production from heavy oil produced in the Lloydminster region increased by 12 per cent in 2012, led by production gains from thermal projects that continue to develop. â&#x20AC;&#x153;Our heavy oil business has been rejuvenated over the past couple of years,â&#x20AC;? said Ghosh. â&#x20AC;&#x153;This includes the earlier than anticipated start-up and subsequent performance of our new Pikes Peak South and Paradise Hill projects.â&#x20AC;? These thermal projects exceeded their total design rates of 11,500 bpd, reaching an average production of 17,000 barrels a day over the fourth quarter. Chief operating oďŹ&#x192;cer Rob Peabody said steam assisted gravity drainage, or SAGD technology, continues to demonstrate the long-term potential for thermal production in the Lloydminster area. â&#x20AC;&#x153;We remain on target to produce 55,000 barrels per day by 2017,â&#x20AC;? he said. The 3,500 bpd Sandall thermal project near Paradise Hill was 40 per cent complete in the quarter. Drilling is underway at the site, with ďŹ rst oil production expected in 2014. Husky also sanctioned the 10,000 bpd thermal development at Rush Lake in the fourth quarter.

Rush Lake is currently producing approximately 1,000 bpd from a single well pair pilot. A second well pair is expected to come on production in the ďŹ rst quarter of 2013. â&#x20AC;&#x153;Our thermal production is a strong story for us in 2012, and in fact, we are set to build on that success over the long term,â&#x20AC;? added Ghosh. Production from a horizontal well program that targets previously untapped thinner reservoirs in the Lloydminster region currently stands at 8,000 bpd and is continuing to grow. Husky drilled 45 horizontal wells in the fourth quarter and continued to â&#x20AC;&#x153;high-gradeâ&#x20AC;? remaining locations for CHOPS wells (cold heavy oil produced with sand).

É¸ Page A24

2003 INTERNATIONAL 5600 stk# 071995 This vehicle is stocked with approximately $80,000 worth of tools, fittings and connectors of various sizes

2007 FREIGHTLINER FLC2064 Stk# DY46193 Day cab, 4x2

1997 MACK CL713 Stk # 968277 Flushby unit, 42 ft. Lash built mast, 3x5 gardner denver tri-plex pump, set up for rod work, comes with all tools. Also available, rod transfer trailer.

2009 KENWORTH T800 Stk # 940109 Dual s.s. exhaust, dual s.s. breathers, full lock up rears.

POWDER COATING Skid Snowmobile & Motorcycle

Any Colour Ornamental

Rims

Dry, clean, highly durable Ă&#x20AC;nish Extended life = cost savings All Colours, Textures and Finishes

Box 1443 3705-52 Street Close Lloydminster SK, S9V 1K4

A24

PIPELINE NEWS March 2013

Husky expects to drill about 200 wells in 2013 Éş Page A23 In 2013, Husky expects to drill about 200 wells overall compared to the 250 drilled in 2012. The company also continues to make progress transitioning its Western Canadian resource plays from convention drilling to oil and liquids-rich gas plays. â&#x20AC;&#x153;With respect to our oil plays for the near term projects, we were primarily active on the Bakken, Viking and Cardium plays,â&#x20AC;? said Peabody who noted 25 horizontal wells were drilled in the quarter. â&#x20AC;&#x153;In the longer term, we are working on the emerging oil plays at the Rainbow Muskwa in northern Alberta and the Canol at Slater River in the Northwest Territories. â&#x20AC;&#x153;At Slater River, we recently received regulatory approval to build the allseason access road. â&#x20AC;&#x153;This year we will conduct further evaluations on the two vertical wells we

drilled last year. â&#x20AC;&#x153;The results of the evaluation work will help us determine the way forward on this potentially very large but complex play. â&#x20AC;&#x153;Overall production from our oil resource plays increased to about 7,000 bpd at the end of the quarter,â&#x20AC;? said Peabody. Husky exited the quarter with 12,000 boepd from its liquids-rich resource play that is currently producing around 14,000 boepd at Ansell, Alta. â&#x20AC;&#x153;We also brought on the latest of our Ansell Woolrich wells with encouraging results,â&#x20AC;? said Peabody. Husky drilled its ďŹ rst four-well pad at Kaybob, targeting the liquids-rich Duvernay and completed the third horizontal well in the play. The company also completed the second of two Montney horizontal wells in the quarter. Total production from Huskyâ&#x20AC;&#x2122;s oil and liquids-rich gas plays was around 20,000 bpd at the end of the quarter. Huskyâ&#x20AC;&#x2122;s major Liwan gas project in the South China Sea is more than 80 per cent complete, with initial gas production as early as the fourth quarter of 2013. The company is also moving ahead on its gas projects on the Madura Strait Block in Indonesia following the positive results of a recent exploration program. â&#x20AC;&#x153;We are now looking at bringing more projects on line,â&#x20AC;? said Peabody. â&#x20AC;&#x153;We recently received approval from the regulator to develop the combined MDA and ďŹ elds and expect to see ďŹ rst gas in the 2015 timeframe. On the BD ďŹ eld, Husky has an approved development plan with a gas sales agreement in place. Closer to home, construction continues on the 60,000 bpd day Sunrise oilsands bitumen project, a joint venture with BP PCL â&#x20AC;&#x201C; with major costs in check. â&#x20AC;&#x153;The Sunrise Energy project is advancing with increasing cost certainty following the conversion of all signiďŹ cant contracts to lump sum,â&#x20AC;? said Peabody â&#x20AC;&#x153;We are also moving ahead with preliminary engineering for the next phase of Sunrise.â&#x20AC;? Husky also expect to submit an application later this year for a Saleski pilot in the West Athabasca oilsands, approximately 100 kilometres southwest of Fort McMurray.

24 Hour Service

Pumpjack Services Corp.

Oilwell Servicing Ltd. 34 years 1978 - 2012

4 Free Standing Rigs Available Â&#x2021; 0RELOH 'RXEOH 'RXEOH Â&#x2021; 0RELOH 6LQJOH 'RXEOHV

Specializing in...

Over 30 pickers ranging from 5 ton to 45 ton Pumping Unit Parts, Sales and Service Highway trucks with Super B trailers Service Truck Fleet to Service all Sizes of Pumping Units Outstanding Safety and QC programs

Fully Equipped Shop including in House Machine Shop and Paint Bay Oil Change and Inspection Services available 400 Ton Horizontal Press Serving All Industries

Â&#x2021; Workovers Â&#x2021; Completions Â&#x2021; Abandonments Â&#x2021; Pump to Surface

Now Hiring:

Email garrisonoilwellservicing@hotmail.com Fax 306-825-5928

â&#x20AC;&#x153;THE OILFIELD EQUIPMENT PEOPLEâ&#x20AC;?

Lloydminster

780.875.7145

1SPWPTU r %SBZUPO 7BMMFZ r .FEJDJOF )BU r ,JOEFSTMFZ

'DUU\O *DUULVRQ &HOO

PIPELINE NEWS March 2013

A25

Cenovus invests in Lakeland energy grads

Rick Davidson, group lead, recruitment at Cenovus Energy in Calgary was on hand for a $1.5 million cheque presentaƟon from Cenovus to Lakeland College.

Lloydminster – Cenovus Energy intends to be an employer of choice for power engineering graduates of Lakeland College after making a $1.5 million donation to the Lakeland College Centennial Fund. The cheque presentation at the Lloydminster campus on Jan. 30 will help Cenovus align its workforce needs with the goals of the college to expand its oil and gas programming. The money is going toward the construction on a $17.5 million Petroleum Centre at the Lloydminster campus and to fund new scholarships for heavy oil energy students. Cenovus has played a lead role in developing the curriculum for a two year 3rd class power engineering course that includes training in steam assisted gravity drainage. The diploma course is being offered for the first time this year. “With this partnership, our aspirations are hiring more students and more new grads from Lakeland – and the alignment of the curriculum with what our needs are in the SAGD field is going to be great,” said Rick Davidson, group lead recruitment for Cenovus in Calgary. “Power engineering is one of those core disciplines that we need to run our facilities and our plants, so the training that these power engineers will get out of facilities like Lakeland College will be critical to our success.”

Cenovus plans to invest between $3.2 billion and $3.6 billion in 2013 to continue its focus on growing production especially from its SAGD oilsands projects at Christina Lake near Fort McMurray and Foster Creek near Cold Lake. The Calgary-based company expects oil production to average between 180,000 and 196,000 barrels per day net in 2013, an increase of 14 per cent compared with forecast 2012 production. Cenovus expects the anticipated overall increase in oil production in 2013 will keep the company on track to achieve a net oil production target of 500,000 bpd by 2021. The company also plans to hire between 450 and 500 people in 2013 to keep pace with its growth. Future years will see additional workforce growth will more projects coming on line. “The majority of our growth and expansion is in the SAGD area in the oilsands, starting with Foster Creek and up north at Christina Lake and some other emerging projects as well,” said Davidson. In 2012, the company expanded its workforce by 20 per cent by hiring approximately 575 employees including workers for the expansion at Foster Creek near Cold Lake. “It produces quite a bit of oil already, but it’s under construction to produce quite a bit of oil in the future,” said Davidson. “In the next years there will be lots of construction which means lots of need for students and new grads and employees to ﬁll the key positions.” Expansion work at Phases F, G and H at Foster Creek are underway, with added oil production capacity expected in 2014. Cenovus is expanding Foster Creek toward a future optimum capacity of 310,000 bpd of bitumen using SAGD technology. The SAGD technology will be added to the Lakeland College curriculum. “I think with this partnership and this new facility that’s going to be built at Lakeland it’s only going to prove to be more beneﬁcial for us and for the school as we move forward” said Davidson. “I think the alignment in terms of the skills that

the new grads will have coming out of school will ﬁt very well with our needs at Cenovus.” Lakeland grads are also needed at Christina Lake where oil production is expected to average between 47,000 and 52,000 barrels per day net in 2013, a 60 per cent increase compared with forecast average 2012 production. The competition for skilled labour in the oilsands industry led Cenovus to knock on Lakeland’s door. ɸ Page A26

Greg Shalay, who instructs the heavy oil operaƟons technician program at Lakeland College in Lloydminster, is pleased to report the new D-type watertube teaching boiler from Victory Energy was to be put on steam by mid-February.

Well Sites s Pipelines Mapping s As-Builts Construction Sur veys Subdivision/Property Sur veys

www.caltechsurveys.com CALGARY

REGINA

40242872•03/06/09

s s s s

40242872•06/25/10

PROFESSIONAL LAND SURVEYORS • Boom & Knuckle Pickers •15-50 Ton/165’ Reach • Winch Tractor c/w Lo-Boys • Tandem & Tri-axle Trailers • Tank Cradles c/w Hydraulic Arm • Pilot Trucks • Double Man Basket • ISN & Comply Works Member • COR/IRP Certified

PICKER & OILFIELD HAULING SERVICE

Proudly serving Lloydminster Area for over 20 Years

UNITY

403 | 263 | 8055 306 | 775 | 1814 306 | 228 | 4366

Lloydminster, SK/AB • Ph: 780-875-9250 • Fax: 780-875-4148

A26

PIPELINE NEWS March 2013

Workforce expanded by 20 per cent Rick Davidson, leĹ&#x152;, group lead of recruitment for Cenovus Energy, listens intently to the opening remarks during the presentaĆ&#x;on of a $1.5 million donaĆ&#x;on by Cenovus to Lakeland College in Lloydminster.

Éş Page A25

The Right Choice For OilďŹ eld Waste Bin Rentals

Toll Free: 1-888-847-7778 OfďŹ ce: 306-672-3062 Fax: 306-672-4427 Email: dynamicreso@gmail.com

â&#x20AC;&#x153;Thatâ&#x20AC;&#x2122;s why these types of partnerships are so critical,â&#x20AC;? said Davidson. â&#x20AC;&#x153;Where we can help institutions like Lakeland College increase their ability to train students and new grads will not only help us, but help the industry, especially those working within the oilsands sector.â&#x20AC;? Lakeland will name one of the SAGD simulation labs in the Petroleum Centre the Cenovus Energy Lab in appreciation for the companyâ&#x20AC;&#x2122;s ďŹ nancial

donation to energy training. The Cenovus donation will also generate a variety of students awards and scholarships to make energy education and training accessible to more students in Lloydminster. â&#x20AC;&#x153;I think thatâ&#x20AC;&#x2122;s fantastic. This will allow students of all types to be able to come to Lakeland and to achieve some of the goals and dreams that they have,â&#x20AC;? said Davidson. â&#x20AC;&#x153;One of those areas could be in power engineering. It will allow them to get the educa-

tion that they need in order to work in our facilities.â&#x20AC;? Cenovus also reaches out to high school students who may have an early interest in pursuing career in the oil and gas industry by attending events such as the bi-provincial Try-aTrade that will be held May 1 at the Lloydminster Exhibition Grounds. â&#x20AC;&#x153;We have participated in the Try-a-Trade show in Lloydminster the last few years,â&#x20AC;? said Davison. â&#x20AC;&#x153;I think itâ&#x20AC;&#x2122;s a critical show to help high school age students understand and learn about the many opportunities that exist in the skilled trades, including power engineering. â&#x20AC;&#x153;We havenâ&#x20AC;&#x2122;t decided yet if we will be up here in the spring, but itâ&#x20AC;&#x2122;s certainly a great show that allows many employers to demonstrate all the wonderful beneďŹ ts of working in the oil and gas industry.â&#x20AC;?

VA N A I R A I R

P O W E R

T O

ÂŽ

G Oâ&#x201E;˘

682 Okanagan Ave E., Penticton, BC Canada V2A 3K7

Toll Free: 1-866-344-6480

VMAC VEHICLE MOUNTED COMPRESSORS

TIGER CRANES

YOUR CUSTOM TRUCK BODY SPECIALISTS, COPIED BY MANY, EQUALLED BY NONE

Fax: (250) 492-0686 sales@normarindustries.com

Brutus Boxes with or without Cabinets

OilďŹ eld Decks

Service Decks

Service Bodies

Welding Decks

Lube Trucks

PIPELINE NEWS March 2013

A27

A28

PIPELINE NEWS March 2013

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

PIPELINE NEWS

SECTION B March 2013

Northern Lights a fabrication hub of choice Story and photos by Geoﬀ Lee

Peter Neufeld, leŌ, works with Neil Neufeld to lower this admix tank into place on a skid package.

St. Paul, Alta. – Northern Lights Welding in St. Paul, Alta. is running flat out to keep up with the demand for their metal fabrication, custom manufacturing and turnkey products for the oilfield. The company fabricates a growing list of tanks, custom products, centrifuges, buildings, bins and skids mainly for the rental market in Western Canada the United States. “We pretty much work for companies straight out of Calgary and most of them are rental companies,” said general manager Gascon who owns the company with partners Dave Doonanco and Marc Michaud. “About 95 per cent of our work is for pro rental companies. A lot of it is custom, and a lot of it is all fabricated. “We pretty much make anything to do with drilling or rentals. If you have an idea, we’ll design it and we’ll build it. “We can brake, we can roll, and we can bend. We fabricate and we have our own sandblasting and painting facility. “We have our own trucking facility, so once I get the order I deliver right to the job site complete. “That's our goal to be a one-stop shop,” said Gascon. To keep pace with the demand for their rental and custom oilfield products, the company opened a new 10-bay, 15,000 sq.-ft. manufacturing and assembly shop complete with overhead cranes in November. “We needed more room,” explained Gascon during a tour of his expansive facilities. “We’ve been keeping very busy. Right now, we’re running at two shifts in one shop just to keep up with the demand.” The new manufacturing shop gives the company more space for arc, MIG and B-pressure welding for large-scale mild steel, aluminum and stainless products. The new shop also features a state-of-the-art heat recovery ventilation system that provides a healthier environment for employees. Welding crews were busy working on 55-ft. long buffer tank during the plant tour on Feb. 15. “We are getting into barite mud systems and blower packages with admix tanks for the barite,” said Gascon. “We do centrifuge packages – centrifuge is big. High wall shale bins are huge. ɸ Page B2

PIPELINE NEWS March 2013

Whatever is required, they will fabricate

Mark Gascon, right, pulls hard to align this piece of steel fed into the 12-Ō. brake machine in the process shop in order to make a precise bend. This piece is being fabricated for a mud storage tank. It takes Įve pieces to make up one 50-Ō. tank.

Project manager and draŌsman Ryan Smyl, leŌ, works with fabricator Cole Taylor to make another bend in this piece of metal being fed into the brake machine in the process shop.

/RFDWLRQV LQ 6RXWKHDVW 6DVNDWFKHZDQ WR 6HUYH <RX

5 DUO\OH D HGYHUV E WRXJKWRQ 7 VWHUKD]\ ZZZ ZHVWHUQVWDUKRWHOV FRP

ɺ Page B1 “We will service the fracking industry, the drilling industry, the heavy oil industry. Pretty much whatever is required, we will fabricate for.” Their list of products includes custom blowback tanks and junk baskets and centrifuges of all types including hydraulic stands, transfer pumps and shale/ centrifuge combos. In the assembly shop, welders were busy completing a drilling rig mud package with two silos, a blower, an admix tank and a cutter bottle mounted on a skid and ready for blasting and painting. Northern Lights recently added a new state of the art 1/2-inch by 10-ft. plate roller to their 10,000 sq.-ft process shop where the bulk of the fabrication begins. “We just sent Ryan Smyl, our project manager and designer, and my son Mark to Italy for 10 days of training,” said Gascon. The process shop is also equipped with a 250-ton 12-ft brake, a 10-ft. shear and a new 8 by 24-ft. high deﬁnition programmable plasma table capable of cutting a 2.5 inch thick plate of steel. “We can cut parts all day long. It eliminates a lot of the waste and a lot of labour,” said Gascon. The process shop is also equipped with band saws, an iron worker and overhead cranes. “Pretty much everything gets built in the process shop, then it’s sent to the welding shop and assembled, and from there to the blast and paint shop,” said Gascon. The sandblasting and paint shop has two 80-ft. bays for internal tank coating, truck and trailer painting and a variety of outsourced jobs. Northern Lights is also delving into hydraulics and is currently designing a custom hydraulic centrifuge stand that can hold two summit centrifuges weighing 28,000 pounds. “We are always trying to design and build something new,” said Gascon. “The more complicated it is, the more fun I have – is basically how I like to run.” “He likes to be challenged,” said his sister Corrine Kostrub, the administrative secretary who helped to coax her brother to talk about his background. “I am actually a B-pressure welder, but I spent my whole life designing and building stuﬀ,” said Gascon. “I like to challenge engineers,” he joked. “I truck, I weld, I paint, and I blast. I can do it all.” ɸ Page B3

When your wellsite, lease or tankage requires containment, call JK Containments! We can save you time and money!

Jayson King 306.736.9169 Stoughton, SK www.jkcontainments.com

One piece portable containment designed with quick set up, environmental security and government regulations in mind. 7KLV SURGXFW LV SDWHQW SHQGLQJ

PIPELINE NEWS March 2013 Éş Page B2 Gascon worked for 12 years as a drilling rig welder in Wabasca before buying out the person he worked for in 1999. The business had one portable welding rig at that time. Six months after setting up shop in St. Paul in 2000, he had 15 employees and there was no end in sight to growth of his company. â&#x20AC;&#x153;Now Iâ&#x20AC;&#x2122;ve got two partners. It just got too much and too big. All three partners â&#x20AC;&#x201C; we are all hands on guys,â&#x20AC;? he added. â&#x20AC;&#x153;Marc and I are welders and Dave is more of an oďŹ&#x192;ce guy. It works out really well.â&#x20AC;? Gascon said their main business challenge being located in St. Paul is to provide Calgary-based clients with good reasons to choose them for their manufacturing over rival companies closer to home. â&#x20AC;&#x153;The one-stop concept is one of them, along my 12 years of welding on drilling rigs â&#x20AC;&#x201C; I know mud systems,â&#x20AC;? he said. Kostrub reminded her brother to also mention the quality of products that Northern Lights is known for, along with their expertise in design. â&#x20AC;&#x153;We love to design and we like new innovation and new ideas,â&#x20AC;? said Gascon. â&#x20AC;&#x153;Anyone who comes here with a new concept, we will try to build it. â&#x20AC;&#x153;Anything from hydraulic centrifuge stands to barite mud systems to premixed tanks, ďŹ&#x201A;oc tanks ďŹ&#x201A;are tanks â&#x20AC;&#x201C; we pretty much do it all.â&#x20AC;? Gascon even designed and built a mobile elevating work platform for servicing wellheads that was sitting in the process shop ready for delivery. Northern Lights can build a variety of tanks to speciďŹ cation such as high wall and low wall shale bins, single wall and double wall combo

tanks and downhole cement silos. â&#x20AC;&#x153;We create our ďŹ&#x201A;oc tanks with four compartments that are stackable and are designed for easy transportation,â&#x20AC;? said Gascon. â&#x20AC;&#x153;We thrive on building to suit the customerâ&#x20AC;&#x2122;s needs. We will help them design and spend a lot of time with them.â&#x20AC;? As for turnaround time, Gascon said itâ&#x20AC;&#x2122;s as quick as a customer requires. â&#x20AC;&#x153;Thatâ&#x20AC;&#x2122;s why I am working two shifts right now. We try to accommodate as good as we can.â&#x20AC;? Gascon put himself on two shifts in early February in order to complete a buďŹ&#x20AC;er tank on time. He said despite the demand and competition in the industry for welders, he has been able to retain a solid core of employees from the early days. â&#x20AC;&#x153;Iâ&#x20AC;&#x2122;ve had people here since just as long as I have been open. A lot of my guys have been here eight or nine years.â&#x20AC;? He also expects his 18 year-old son Mark will follow in his footsteps in the trade and attend welding apprenticeship training at Lakeland College in Vermilion in the coming months. â&#x20AC;&#x153;He is very good at programming and processing, but I want him to get his welding,â&#x20AC;? said Gascon. â&#x20AC;&#x153;He likes to run the CNC machines, but he stills needs a welding background.â&#x20AC;? Northern Lights is also a local Praxair depot and provides a wide range of miscellaneous services from portable welding and pipe fabrication to bending, CNC cutting and sales of steel for building. This spring, the company will expand its oďŹ&#x20AC;-site welding supply store and also start construction on a new administrative oďŹ&#x192;ce adjacent to the manufacturing facility.

B-pressure welder Pierre Lavoie welds a heater line for a mud tank in the assembly shop.

This complete fabricated mud package includes two silos, a blower, an admix tank and a cuĆŠer boĆŠle. The skid will head to the sandblasĆ&#x;ng and paint shop before being shipped to the customer.

Julien Michaud, a second year welding apprenĆ&#x;ce, works on welding parts for the Ĺ&#x2021;oor of a 55- Ĺ&#x152;. buÄŤer tank for fracking. The work is conducted inside the new 15,000 sq.-Ĺ&#x152;. manufacturing facility for welding and assembly.

+877Âˇ6 758&.,1* /7'

Â&#x2021; 7RQ 3LFNHUV Â&#x2021; 7H[DV %HG :LQFK 7UXFN Â&#x2021;+LJKZD\ 7UDFWRUV Â&#x2021; +LJKER\V Â&#x2021; 6WHSGHFNV Â&#x2021; 'RXEOH 'URS 7UDLOHUV Â&#x2021; 3LORW 7UXFNV Â&#x2021; 5LJ 0DWWLQJ &HOO %XV Â&#x2021; )D[ /DPSPDQ 6. (PDLO KXWWKROGLQJV#VDVNWHO QHW

81'(5 1(: 0$1$*(0(17

12: +,5,1* /\QFR 2IĂ&#x20AC;FHV LQ

0RRVH -DZ :DSHOOD 0LGDOH Â&#x2021; 6WDLQOHVV :HOGHUV Â&#x2021; 0DLQWHQDQFH )RUHPDQ Â&#x2021; 2SHUDWRUV Â&#x2021; /DERXUHUV

6HQG 5HVXPH WR

&RQVLGHU /\QFR IRU \RXU 3,3(/,1( )$&,/,7< 1(('6

/\QFR &RQVWUXFWLRQ /WG %R[ 0LGDOH 6. 6 & 6 )D[ ZZZ O\QFR FD

PIPELINE NEWS March 2013

Four universities, two governments, PTRC and SRC sign agreement Â&#x201E; By Brian Zinchuk Regina â&#x20AC;&#x201C; Hot on the heels of a successful test that showed it is possible to send tiny sensor probes (â&#x20AC;&#x153;motesâ&#x20AC;?) down one well through underground wormholes, and retrieve them in another well, the Petroleum Technology Research Centre is cementing its relationship with the Dutch research organizations that were integral to the project. The improvement of recovery rates and environmental impacts for the North American oil and gas industry is the focus of a new international consortium established Feb. 1 to develop and deploy

leading-edge technologies. The consortium will wed Canadian enhanced oil recovery know-how with Dutch high technology development, and the potential economic impact through incremental increases in oil production could be in the billions of dollars. Canadian oilďŹ elds, particularly those in eastern Alberta and western Saskatchewan that experience very low recovery rates, high waste water production from reservoirs, and other environmental and production issues, are main targets of the consortium. With Saskatchewanâ&#x20AC;&#x2122;s two universities and research council expe-

rienced in the development of processes to help address these issues, tapping into that knowledge will be crucial for taking these state-of-the-art sensing and control technologies â&#x20AC;&#x201C; which have been successfully deployed to identify problems in other industrial processes â&#x20AC;&#x201C; to unique oilďŹ eld situations. â&#x20AC;&#x153;We signed an agreement with four universities, two governments, and the Saskatchewan Research Council,â&#x20AC;? said Dr. Malcolm Wilson, CEO of the Petroleum Technology Research Centre. â&#x20AC;&#x153;This is geared at developing a practical solution. The research will be relatively lim-

3URYLGLQJ :DVWH 5HF\FDEOHV &ROOHFWLRQ 7KURXJKRXW 6RXWKHDVW 6DVNDWFKHZDQ

6RXULV $YH (VWHYDQ WK 6W 1( :H\EXUQ 7ROO )UHH

ited,â&#x20AC;? he said. The full-blown test was conducted in midNovember. The probes were injected over three days, from the Nov. 12 to 14, and began to show up from the ďŹ rst dayâ&#x20AC;&#x2122;s injection in the production well on the last day. The motes had to ďŹ nd their way through the formation and into the producer well. There, they had to actually get sucked into the pump, not settling out in the bottom of the well. The test proved for the ďŹ rst time there is a channel between the wells with a minimum opening of seven millimetres. â&#x20AC;&#x153;Of Saskatchewanâ&#x20AC;&#x2122;s 45 billion barrels of oil reserves, some 25 billion are heavy oil deposits that are very difďŹ cult to exploit,â&#x20AC;? noted Wilson. We know that recovery rates average eight per cent in heavy oil ďŹ elds. Even here, recovery increases by producing sand along with the oil. This leaves holes in the reservoir that we need to understand better in order to recover more of the oil. Sensors will help us do this. We already illustrated in a ďŹ eld trial late in 2012 that Dutch microsensors can travel successfully through heavy oil formations and potentially help

&216,*1 12: 72 285

identify the location of those gaps.â&#x20AC;? The creation of the consortium is the culmination of a two-day road-mapping workshop hosted by the PTRC/INCAS3 Innovation Centre (PI Innovation Centre for short) which included several research partners in the workshop â&#x20AC;&#x201C; the Universities of Regina and Saskatchewan, the University of Groningen, Eindhoven University of Technology, and the Saskatchewan Research Council (along with input from select oil and gas companies). The workshop helped to identify key opportunities for improving recoveries and reducing environmental impacts of oil production. â&#x20AC;&#x153;The economic prize for Canada in the application of these new technologies is enormous. Even an increase in production from Saskatchewanâ&#x20AC;&#x2122;s heavy oil reservoirs from eight to 15 per cent would mean two billion more barrels of oil produced annually, or at todayâ&#x20AC;&#x2122;s rate, almost 200 billion dollars in economic impact,â&#x20AC;? said Dr. Wilson. The newly created consortium will develop work plans and projects that will facilitate collaboration between all partners, in both Europe and Canada, and will establish dedicated funding for development and deployment (RD&D) activities leading to

commercial applications. The signing ceremony creating the new consortium was held on Feb. 1 at the PTRC building in Regina, and included Regina Walsh Acres MLA Warren Steinley attending on behalf of the Saskatchewan Minister Responsible for Energy and Resources, Dr. Dennis Fitzpatrick (vicepresident of research from the University of Regina), Dr. James Basinger (associate vice-president of Research at the University of Saskatchewan), Professor Sibrand Poppema (president of the University of Groningen), Professor Hans van Duijn (Rector MagniďŹ cus of the Eindhoven University of Technology), Dr. Laurier Schramm (president and CEO, Saskatchewan Research Council), and representatives from Innovation Saskatchewan, the Saskatchewan Ministry of the Economy, and the PI Innovation Centre. â&#x20AC;&#x153;The University of Regina is excited to be part of this consortium,â&#x20AC;? said Dr. Vianne Timmons, president. â&#x20AC;&#x153;International collaborations such as this provide important opportunities to enhance the engineering and technological research being done at Saskatchewanâ&#x20AC;&#x2122;s universities, while helping realize environmental and economic beneďŹ ts in our province and around the world.â&#x20AC;? É¸ Page B5

)25 5(17 Â&#x2021; 58%%(5 75$&. 6.,' 67((56 Â&#x2021; 0,1, 75$&. +2(6 Â&#x2021; 3257$ 3277,(6 Â&#x2021; 0,1, 6.,' 67((5 Â&#x2021; &$5 +$8/(5 75$,/(5 Â&#x2021; )/$7 '(&. 75$,/(56 Â&#x2021; /% 528*+ 7(55$,1( )25. /,)7

)5(6+ :$7(5 $9$,/$%/( )25 )5$& :$7(5 '5,//,1* 5,* (7&

3RQJR +ROGLQJV /WG &$// 72 &216,*1 <285 (48,30(17

31/2 miles South of Estevan on Hwy 47 (35 of 1 of 8, West of the 2nd)

PIPELINE NEWS March 2013

These dignitaries were present in Regina at the Feb. 1 signing of an agreement that will see future development of specialized underground remote sensing technology. Photo submiĆŠed

Éş Page B4 â&#x20AC;&#x153;The Dutch Top Sector policy is all about creating sustainable economic growth by aligning industry and social challenges with university research. This initiative provides an excellent opportunity to do so in an international context,â&#x20AC;? said Van Duijn. â&#x20AC;&#x153;The next step is to look at the immediate well area,â&#x20AC;? Wilson said of their ongoing work. They will speciďŹ cally be looking at entry points to wormholes. Ideally they would like to map them in 3D. Is there a cavity around the well, then wormholes, for instance? â&#x20AC;&#x153;You donâ&#x20AC;&#x2122;t want those high throughput channels. Water just bypasses all

the oil,â&#x20AC;? he said, referring to waterďŹ&#x201A;ood situation. Solvents may be key. Over the next six months the partners will continue to develop the consortium. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;ll be continuing to work with industry and taking the next step,â&#x20AC;? Wilson said. As for further testing, he said, â&#x20AC;&#x153;We anticipate doing something over the summer. Weâ&#x20AC;&#x2122;ll probably do a single well test, using conventional oilďŹ eld tools, i.e. logging tools, to track the motes.â&#x20AC;?

%(57 %$;7(5 75$163257 /7'

Serving the oil patch of Western Canada LONG HAUL - Canada & US ',675,%87,21 ,1&

Â&#x2021; &RPSOHWHO\ 6HOI &RQWDLQHG Â&#x2021; /HDYHV $ 6PDOOHU (QYLURQPHQWDO )RRWSULQW Â&#x2021; 1R 6HSDUDWH &RQWDLQPHQWV 1HHGHG Â&#x2021; 0HHWV 7KH (&21 &RQWDLQPHQW *XLGHOLQHV Â&#x2021; 'RXEOH %EO 7DQN Â&#x2021; 1R 1HHG )RU *UDYHO 3DGV 3ODQNV 3LFNHU 7UXFNV Â&#x2021; 1R 0RUH 7DQN &UDGOH ([SHQVHV Â&#x2021; /RZ 3URĂ&#x20AC;OH 7DQN 7KDW :LOO 1RW &OXWWHU 7KH +RUL]RQ Â&#x2021; (QKDQFHG 6DIHW\ 'XH 7R 5HGXFHG 2YHUDOO +HLJKW Â&#x2021; &RDWHG 7DQNV 315A Kensington Ave., Estevan, SK

301 Kensington Ave. Estevan, SK. Phone: (306) 634-3616

(306) 634-2835 Fax (306) 634-2797 1730 Ebel Road, Weyburn, S4H 1V3 Ph: (306) 842-5081 Fax: (306) 842-5309

www.apexdistribution.com

',675,%87,21 ,1&

Fort Nelson, B.C. Phone: (250) 774-2615

3902 - 75th Ave. Leduc, AB. Phone: (888) 835-0541

ZZZ EED[WHUWUDQVSRUW FD

PIPELINE NEWS March 2013

2013 Williston Basin Petroleum Conference will be larger By Brian Zinchuk Regina – The Williston Basin Petroleum Conference just keeps getting bigger and bigger. The conference, which alternates between Bismarck, N.D. and Regina each year, has grown by leaps and bounds since the Bakken play has taken off in both jurisdictions over the last five years. While the North Dakota version has become substantially larger, the Regina conference this year is expected to be much larger than the 2011 edition held here. “We’re preparing for possibly 3,000. I think we’ll definitely be more than two years ago,” said Erik Nickel, senior research petroleum geologist with the Saskatchewan Geological Survey, Ministry of the Economy, and one of the organizers. “We’ve sold out all our booth space and golden and silver sponsorships. Our show floor is full.” They have approximately 300 booths at Evraz Place and the Connexus Centre venue. While the 2011 conference had enough spare booth space that they could fit a semi indoors instead of outdoors, that will not be the case this time. The space is all taken. “We had more than 200 (booths) last time,” Nickel said. There will also be about 10 to 12 outdoor exhibitors as well. When it comes to sheer numbers of indoor booths, the Williston Basin Petroleum Conference is now rivalling the Saskatchewan Oil and Gas show, which will be held June 5-6 in Weyburn. There’s quite a ways to go on outdoor booths, however.

“We try to maintain a bif of diﬀerent focus from the Weyburn oil show,” Nickel said. “Our goal is more technical.” The conference, now it its 21st year, has its roots in geology, and its speaking slate hasn’t strayed to far from the core. There will be two, and potentially three venues for speakers, with two concurrent sessions. There will also be an open-to-the-public session from 1-4:30 p.m. on May 1. It will take place in the Queensbury Convention Centre. That session two years ago proved quite popular. John Styles, an oil executive from Regina, will talk about “soup to nuts” on the basics of the oil industry. In the paid portion of the convention, Weston Dressler of the Saskatchewan Roughriders will also be one of the speakers. “He’s from Bismarck and went to UND (University of North Dakota). He lives in Regina now,” Nickel said. Dressler’s presentation is expected to be of the motivational variety. “We do end up with a fair bit of Bakken talks on EOR,” he said. Mars Luo of the Saskatchewan Research Council will be speaking on what’s next for enhanced oil recovery. Jim Sorensen of the Energy & Environmental Research Center (EERC) at the University of North Dakota will speak about enhanced Bakken research. Stephani Gaswirth of the U.S. Geological Survey will go over reassessment of the Bakken and Three Forks formation, discussing the total amount of oil present. This could be big news, as Nickel said, “We know it’s going to be a pretty big number.” ɸ Page B7

THE buyer’s guide TO CANADA’S OIL & GAS INDUSTRY

REACH THE buyers AND sellers SERVICES OF OILFIELD AND SUPPLIES CONNECT TO AN entire marketplace BY ADVERTISING IN THE COSSD For information, contact: Christopher Kuntz at 1.800.387.2446 (3492) or ckuntz@junewarren-nickles.com Advertising deadline for this year is March 15, 2013. Rates start at $366 (plus GST) per year, which includes an in-column listing in the printed book and a link on COSSD.com COSSD.COM

PIPELINE NEWS March 2013

The 2013 Williston Basin Petroleum Conference is expected to be substanƟally larger than the 2011 version, seen here.

ɺ Page B6 That number is reﬁned year after year, and will be updated at this time. There will also be presentations on the Red Beds or Spearﬁsh formation, known locally as the

Lower Watrous. It’s quite strong in Manitoba, and could perhaps ﬁre up again in Saskatchewan. That formation is prevalent around Manor. This is one of Saskatchewan’s more shallow oil-bearing formations. Canadian Discovery’s Kaush Rakhit will dis-

File photo

cuss hydrogeology related to the Spearﬁsh. While the pressure on hotels isn’t expected to be as severe as it is when the conference is held in Bismarck (when some people end up staying in Minot as the closest place they can ﬁnd rooms), Nickel advises participants to book as soon as possible.

PIPELINE NEWS March 2013

Locally made can be a lot quicker for specialty parts Â&#x201E; Story and photos by Brian Zinchuk

Bud McLaughlin, right, and Greg Wock are partners in Axis Services of Estevan.

6835(0( 675((7 (67(9$1 6.

:HSLZ

Â&#x2021; 1HZ 5HPDQXIDFWXUHG :HOOKHDG (TXLSPHQW 9DOYHV

:LY]PJLZ

Â&#x2021; :HOOKHDG )UDF 7UHH ,QVWDOODWLRQV

Estevan â&#x20AC;&#x201C; While itâ&#x20AC;&#x2122;s common to see clients walking into a machine shop asking for repairs on obscure items, those that often come through Axis Serviceâ&#x20AC;&#x2122;s door in Estevan are rare, indeed. Thereâ&#x20AC;&#x2122;s large, key pieces of draglines in one area. In the main shop, a large brass socket that provides the pivot point for a coal hauler will be replicated, from scratch. Axis Services is owned and operated by partners Bud McLaughlin and Greg Wock. It used to be known as JKD Services for about a decade before Wock bought out Myles Fichter, a former partner. They came under the new name last fall. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re a machine shop. We do mining, the oilďŹ eld, a bit of power, and walk-in traďŹ&#x192;c for farmers,â&#x20AC;? said McLaughlin. â&#x20AC;&#x153;We get a lot of references from businesses in town. Weâ&#x20AC;&#x2122;re pretty well known in the oilpatch.â&#x20AC;? The companyâ&#x20AC;&#x2122;s location has remained the same since it began, in a green building south of Highway 39 and just east of the Canadian PaciďŹ c mainline, on the southeast corner of Estevan. Thereâ&#x20AC;&#x2122;s no sign, however. Theyâ&#x20AC;&#x2122;ve never needed one. Business just keeps coming through the door. Indeed, one of their welders, Martin Hicks joked, â&#x20AC;&#x153;Thereâ&#x20AC;&#x2122;s a two letter word Bud doesnâ&#x20AC;&#x2122;t know â&#x20AC;&#x201C; â&#x20AC;&#x2DC;No." â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;ll pretty well tackle any job,â&#x20AC;? McLaughlin said. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;ve made stuďŹ&#x20AC; for TS&M and they sent it to China. We just had a run of 200 pieces for a local company (that originated) in China. We had to modify it. â&#x20AC;&#x153;How do you send something all the way back there? To China? They buy these things by the sea can. Itâ&#x20AC;&#x2122;s hard to get warranty from China.â&#x20AC;? The company does a little manufacturing as well. â&#x20AC;&#x153;Our biggest run was up to 400 pieces,â&#x20AC;? he said, describing Axis as â&#x20AC;&#x153;more of a custom machine shop with manufacturing capabilities.â&#x20AC;? É¸ Page B9

%XLOGLQJ )RU 6DOH

9LU[HSZ

Â&#x2021; )UDF 7UHHV Âľ Âľ Âľ Â&#x2021; *DWH 9DOYHV Âľ Âľ Âľ Âľ Âľ Â&#x2021; 0LVFHOODQHRXV ZHOOKHDG HTXLSPHQW

0DLQ 6WUHHW &DUQGXII VTXDUH IHHW $YDLODEOH LPPHGLDWHO\ )RU PRUH LQIRUPDWLRQ &DOO +HQU\ DW RU

3`SL .Y\IL Â&#x2039; )\Y[ )SVUKLH\ 6MĂ&#x201E; JL! KRXU VHUYLFH

3 /,1( /2&$7,1*

3 /($. '(7(&7,21 ),'

3 *36 0$33,1*

6HUYLQJ 6RXWKHDVW 6DVNDWFKHZDQ DQG 6RXWKZHVW 0DQLWRED %R[ 2[ERZ 6. 6 & % 'LVSDWFK 2IĂ&#x20AC;FH )D[

ZZZ DEVROXWHORFDWLQJ FRP

(PDLO LQIR#DEVROXWHORFDWLQJ FRP

PIPELINE NEWS March 2013 Éş Page B8 One of their products is the locally designed Bulldog Clamp for Gilliss Oil Tools, a clamp that is used on service rig winch lines to pick up tubulars. That company used two other manufacturers before settling on Axis in late 2011, in large part due to the quality of their work. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;ve made over 200 in that short time,â&#x20AC;? McLaughlin said. Cutting is done in Saskatoon, but welding and assembly takes place in Estevan. â&#x20AC;&#x153;The manufacturing is nice, but custom work keeps employees interested,â&#x20AC;? McLaughlin said. â&#x20AC;&#x153;We also make parts for two coal mines in Alberta. Weâ&#x20AC;&#x2122;re bidding on two more mines in Alberta to make parts for them.â&#x20AC;? He shows a pin that is used to hold buckets and rigging on a dragline. It was nine inches thick and 27 inches long, or, put another way, â&#x20AC;&#x153;486 pounds for one pin,â&#x20AC;? McLaughlin said. Itâ&#x20AC;&#x2122;s a far cry from your typical farm tractor pin. Other examples include stud bolts that are 2-1/2 inches across and 12 inches long. When asked why the clients donâ&#x20AC;&#x2122;t simply order from the manufacturers, he said, â&#x20AC;&#x153;We compete very well with the OEMs (original equipment manufacturers), plus, weâ&#x20AC;&#x2122;re local. If they need six studs, we can do them the same day. P&H might get that order that day.â&#x20AC;? One of the secrets

to the companyâ&#x20AC;&#x2122;s success is ensuring they have plenty of stock steel to work with. â&#x20AC;&#x153;Iâ&#x20AC;&#x2122;m a distributor for Astralloy Steel Products,â&#x20AC;? McLaughlin said. â&#x20AC;&#x153;We just bought a yearâ&#x20AC;&#x2122;s supply of steel because the mill made too much. We got it for cheap.â&#x20AC;? McLaughlin said they probably have a two-year supply of steel. That provides them ďŹ&#x201A;exibility in meeting orders, because they typically donâ&#x20AC;&#x2122;t have to wait for the base components to come in. They just go to the back yard and pick it up. â&#x20AC;&#x153;We can do it the same day. We donâ&#x20AC;&#x2122;t have to order material in. How do you provide a service without material?â&#x20AC;? â&#x20AC;&#x153;We stock up to nine-inch diameter round in stainless,â&#x20AC;? he said. That is often used for ďŹ&#x201A;anges and stuďŹ&#x192;ng boxes. Stainless steel is necessary particularly in carbon dioxide ďŹ&#x201A;ood environments, because the CO2 process is very corrosive to typical carbon steel. â&#x20AC;&#x153;We make a lot of stuďŹ&#x192;ng boxes for several other businesses in town,â&#x20AC;? said McLaughlin. â&#x20AC;&#x153;We do quite a bit of welding such as hard surfacing for dragline teeth to 70 Rockwell. They get about three times the life out of their parts that way,â&#x20AC;? he said. Hard-surfacing means welding a layer of tough metal onto items like bucket teeth and buckets themselves. This provides a more wear-resistant surface in abrasive environments. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s a tungsten

6HUYLQJ 6RXWK (DVW 6DVNDWFKHZDQ DQG 0DQLWRED 5LJ PRYLQJ JHQHUDO RLOĂ&#x20AC;HOG KDXOLQJ Â&#x2021; :LQFK 7UDFWRUV Â&#x2021; 3LFNHUV Â&#x2021; %LJ %HGV Â&#x2021; &RPPDQGHUV

1RZ +LULQJ 7ROO )UHH 'LVSDWFK 2IĂ&#x20AC;FH

1HZ /RFDWLRQ NP VRXWK RI :H\EXUQ RQ KLJKZD\

carbide. We get it out of Rhode Island. Itâ&#x20AC;&#x2122;s hard,â&#x20AC;? he said. â&#x20AC;&#x153;We do quite a bit, probably two-and-a-half days a week. We have a guy during the day, and another that comes in at night,â&#x20AC;? McLaughlin said of hard surfacing welding. Their equipment includes seven lathes â&#x20AC;&#x201C; six manual and one CNC. Thereâ&#x20AC;&#x2122;s a boring mill, a large milling machine, drill press, band saw, and line boring equipment. Their Bortech welder is an automated system that welds a wear layer onto the inside of a bore. The company will be expanding soon. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re going to add a building this year. Weâ&#x20AC;&#x2122;re hoping to start this spring.â&#x20AC;? Their staďŹ&#x20AC; will likely be involved in some of the building process, with McLaughlin stating, â&#x20AC;&#x153;Theyâ&#x20AC;&#x2122;ll be helping. They can run a tape measure pretty well.â&#x20AC;? However, having machinists doing comparatively rougher work in construction can be a little hard on their souls. â&#x20AC;&#x153;They try to be too accurate. Theyâ&#x20AC;&#x2122;re used to paper-thin accuracy,â&#x20AC;? he said. The company has ten employees working for it, including the two owners. É¸ Page B10

Staci Barker is a journeyperson machinist, having earned her Ć&#x;cket in 2003.

&DQDGLDQ 2ZQHG 2SHUDWHG 6WHDPLQJ _ *UDYHO _ 'D\OLJKWLQJ _ :DVKLQJ _ 7UXFNLQJ

+\GURYDF Íť 3RUWDEOH &DWZDONV Íť :LQFK 7UXFN Íť WRQQH SLFNHU WUXFN Â&#x2021; *UDYHO 6HUYLFHV

&RPER 9DF Íť 6WHDPHUV Íť 3RUWDEOH :DVKURRPV Íť 0HFKDQLFDO 6HUYLFHV

&RPPHUFLDO 7UXFN :DVK &RQYHQLHQFH 6WRUH +Z\ ( 2[ERZ 6N ZZZ FRXUDJHRLOĂ&#x2020; HOG FRP

B10

PIPELINE NEWS March 2013

Working at the Hotel California, almost. Few ever leave Éş Page B9 â&#x20AC;&#x153;Greg started out here as a ďŹ rst-year apprentice,â&#x20AC;? McLaughlin said. Now heâ&#x20AC;&#x2122;s bought into it. Steven Lalonde started as a high school student and now has his journeyperson papers. Grade 11 student Kade Anderson comes in after school and on holidays. â&#x20AC;&#x153;Heâ&#x20AC;&#x2122;s going to be a machinist. Heâ&#x20AC;&#x2122;ll have lots of hours by the time heâ&#x20AC;&#x2122;s done Grade 12,â&#x20AC;? McLaughlin said. â&#x20AC;&#x153;One other, Justin Schlapkhol, started right after high school. Heâ&#x20AC;&#x2122;s in his third-year apprenticeship. We do train a lot of people from the ground up.â&#x20AC;? Then thereâ&#x20AC;&#x2122;s Ernie Yanish, 75. He came in after a curling match, put on his boots and coveralls, and went to work. â&#x20AC;&#x153;Heâ&#x20AC;&#x2122;s been here from day one,â&#x20AC;? McLaughlin said. â&#x20AC;&#x153;He was the ďŹ rst one here. He contracts to us.â&#x20AC;?

Unlike many other companies in the area, he said, â&#x20AC;&#x153;We havenâ&#x20AC;&#x2122;t had to hire out of country, or out of town. We train a lot, too. That helps if you train from the ground up.â&#x20AC;? Indeed, in some ways Axis, and its predecessor company, JKD Services, are like the Hotel California. You can hire on any time you like, but youâ&#x20AC;&#x2122;re not likely to leave. The company has only lost one staďŹ&#x20AC;er in 12 years, and that man is now in the ďŹ eld and sends them work. Wock is 27. â&#x20AC;&#x153;Iâ&#x20AC;&#x2122;ve been here a little over 10 years,â&#x20AC;? he said. He was the companyâ&#x20AC;&#x2122;s third employee. He bought into the business last fall. Asked why, Wock said, â&#x20AC;&#x153;I started here, did my whole apprenticeship here. I like what he (McLaughlin) has going and the guys.â&#x20AC;? Wock said, â&#x20AC;&#x153;It would be nice to get into waterjet cutting.

Hydrovac IHHW RI UHDFK GD\ OLJKWLQJ XWLOLWLHV Â&#x2021; SRW KROHV Â&#x2021; VORW WUHQFKLQJ

6HUYLFH 4XDOLW\ )URP 6WDUW 7R )LQLVK

&21&5(7( /7'

&(5 7, ) ,(' &21&

:(<%851

5DLOZD\ $YHQXH 3K )D[ 'HQQLV Â&#x2021;

5(7( 3 /$17

&$51'8))

+LJKZD\ 1RUWK 3K )D[ 5DQG\ Â&#x2021;

Ernie Yanish drilled pins aĹ&#x152;er a curling match earlier in the day. He was the ÄŽrst employee of the company now known as Axis Services, and sĆ&#x;ll works partĆ&#x;me at the age of 75. Photo by Brian Zinchuk

Still machining at 75 After a little curling, Ernie Yanish, 75 suited up in his coveralls and got back to work, drilling pins at Axis Services Ltd. He was the ďŹ rst employee hired by what was then known as JKD Services. Ernie Yanish is originally from a farm four miles north of Tiny, a now ghosttown north of Canora. â&#x20AC;&#x153;I left the farm in â&#x20AC;&#x2122;56,â&#x20AC;? he said. â&#x20AC;&#x153;I was a breadman for 31-1/2 years with Westonâ&#x20AC;&#x2122;s,â&#x20AC;? he said. He came to Estevan in 1967. Bread sales declined, however. â&#x20AC;&#x153;They sold their trucks and had a distributorship for it.â&#x20AC;? Yanish did that for a brief time, but it soon ended.

He worked for three years at Threadall Machine in Estevan. But that companyâ&#x20AC;&#x2122;s sign, still up on Fourth Street, lasted far longer than the company did. It was on-the-job training, he said. â&#x20AC;&#x153;I had to ďŹ nd work, and this was it,â&#x20AC;? he said. â&#x20AC;&#x153;Bud needed somebody, so I started with him.â&#x20AC;? Yanish was the ďŹ rst employee of JKD Services, now known as Axis Services. â&#x20AC;&#x153;He keeps them in line,â&#x20AC;? said Bud McLaughlin, one of the owners of Axis. Yanish drives a â&#x20AC;&#x2122;53 Dodge half-ton. â&#x20AC;&#x153;It needs a paint job, but itâ&#x20AC;&#x2122;ll start today,â&#x20AC;? he said on a brisk January afternoon. â&#x20AC;&#x153;I get a lot of oďŹ&#x20AC;ers for it.â&#x20AC;?

%8/. 3523$1(

3523$1( $&&(6625,(6 Â&#x2021; &DUGORFN Â&#x2021; /XEULFDQWV Â&#x2021; 3URSDQH

3523$1(

*LUDUG %XON 6HUYLFH /WG (67(9$1 WK 6WUHHW Â&#x2021;

2;%2:

$/,'$

&$5/</(

5('9(56

PIPELINE NEWS March 2013

B11

Taking over long-established business means opportunity CarnduďŹ&#x20AC; â&#x20AC;&#x201C; One of the rising trends in Saskatchewan these days is the need for succession planning for long-established businesses whose owners are seeking to retire. What do you do when itâ&#x20AC;&#x2122;s time to step away from a family business that has been around for decades? For Robert and Carol Andersen, they chose to sell their parts supply store, Agratec International, to C&N Supply, another locally-owned operation. Agratec has focused on industrial, automotive and ďŹ&#x201A;eet supplies, with some agriculture as well. C&N OilďŹ eld launched its own supply store, C&N Supply, a few years ago, targeting a clientele that wanted to be able to pick up oilďŹ eld supplies locally without having to run an hour into Estevan. Robert has a great banter with clients as they come in. That likely comes from having long experience with them. After all, the family-owned business founded by his father, was started 57 years ago. â&#x20AC;&#x153;He started in 1955, Burrell and his brother Dwight. It was an International Harvester outďŹ t to start with,â&#x20AC;? Robert said. They kept the IH dealership until 1989, at which point Robert said there was â&#x20AC;&#x153;too much equipment chasing too few dollars. It just wasnâ&#x20AC;&#x2122;t there.â&#x20AC;? Indeed, they donâ&#x20AC;&#x2122;t do a lot of agricultural supply because it has become so specialized. â&#x20AC;&#x153;The farmers tend to go to John Deere or IH,â&#x20AC;? he said. He personally worked at the store for a few years before going oďŹ&#x20AC; to Winnipeg where he received a diploma in business administration from Red River Community College. â&#x20AC;&#x153;Thatâ&#x20AC;&#x2122;s where I met my wife,â&#x20AC;? Robert said. â&#x20AC;&#x153;She was a teacher in Winnipeg.â&#x20AC;? Carol taught there for ďŹ ve years. Robert worked for awhile with the Bank of Montreal. É¸ Page B12 Robert and Carol Andersen have sold their business, Agratec InternaĆ&#x;onal, to C&N Supply. The business has been in the Andersen family for 57 years.

*UHDW ,QYHVWPHQW 3URSHUWLHV

7DQ ); (VWHYDQ

WK 6WUHHW (VWHYDQ

0/6

+:< (DVW (VWHYDQ

-DPLH '\HU

Curlyâ&#x20AC;&#x2122;s Pick

er Service Ltd.

Mark T. (Curly) Hirsch

TXDUWHUV RI IDUPODQG LQ WKH KHDUW RI WKH %DNNHQ 3DYHG DFFHVV WR DOO TXDUWHUV /DQG KDV QRW EHHQ FKHPLFDOO\ VSUD\HG LQ RYHU \HDUV 1LQH VXUIDFH OHDVH SDUFHOV RQ SURSHUW\ LQFOXGHG LQ SULFH

0/6

DFUHV RI SULPH ODQG IRU VDOH DQG UHDG\ IRU \RXU GHYHORSPHQW 7KLV SURSHUW\ LV ]RQHG +HDY\ ,QGXVWULDO ,W LV ORFDWHG HDVW RQ (VFDQD VWUHHW LQ WKH FLW\ RI (VWHYDQ (VFDQD 6WUHHW (VWHYDQ

/LVD 0RQWH\QH

0/6 5HDOWRU 2ZQHG

C&N Supply will be moving to the Agratec InternaĆ&#x;onal locaĆ&#x;on in CarnduÄŤ.

.HQVLQJWRQ (VWHYDQ

+HUH DZDLWV DFUHV RI SULPH ODQG IRU VDOH DQG UHDG\ IRU \RXU GHYHORSPHQW 7KLV SURSHUW\ LV ]RQHG +HDY\ ,QGXVWULDO DQG LV ORFDWHG DW WKH VRXWK HQG RI .HQVLQJWRQ $YHQXH LQ WKH FLW\ RI (VWHYDQ ,W LV FXUUHQWO\ VHUYLFHG ZLWK VLQJOH SKDVH SRZHU *UHDW RSSRUWXQLW\ IRU D EXVLQHVV LQ WKH KHDUW RI RLO FRXQWU\

0/6

.LQJ 6W (VWHYDQ

0/6

<RXQJ $FUHDJH (VWHYDQ 0/6

3HUNLQV 6WUHHW (VWHYDQ 3ULPH ,QGXVWULDO ODQG RQ HDVW HQG RI (VWHYDQ LQ H[FHOOHQW ORFDWLRQ ZLWK JUHDW H[SRVXUH =RQHG OLJKW LQGXVWULDO 7ZR EXLOGLQJV DUH ORFDWHG LQ WKLV WZR DFUH SURSHUW\ 'RQÂˇW SDVV XS WKH RSSRUWXQLW\ WR RZQ VRPH RI WKH PRVW YDOXDEOH VHUYLFHG LQGXVWULDO ODQG IRU VDOH LQ (VWHYDQ

0LNH 'H%UX\QH

-RVK /H%ODQF WK 6WUHHW (VWHYDQ SOXV LQYHQWRU\ 0/6

0/6

1595 Dieppe Cres. Estevan, Sask. S4A 1W8

Secor CertiĂ&#x2026;ed Cell: (306) 461-5898 Fax: (306) 634-6690

Â&#x2021; Â&#x2021; (VWHYDQ 6KRSSHUV 0DOO ZZZ EKJUHVVHVWHYDQ FD

B12

PIPELINE NEWS March 2013

C&N Supply acquires Agratec International

Colin McInnes, leĹ&#x152;, and Kris Carley of C&N Supply visit with Robert Andersen of Agratec InternaĆ&#x;onal. McInnes will be looking aĹ&#x152;er the merged locaĆ&#x;on, now that the Andersens are reĆ&#x;ring.

2[ERZ 3LSHVWRQH :DVNDGD

Éş Page B11 They came back to CarnduďŹ&#x20AC; in 1971 â&#x20AC;&#x153;I was a stay-at-home mom until about 1982,â&#x20AC;? Carol said. â&#x20AC;&#x153;I started here in 1982.â&#x20AC;? They have three children and seven grandchildren. All three of the children went on to higher education and got degrees. One now lives in Indiana, another in Minnesota, and the third in British Columbia. Two are chartered management accountants and the third is a teacher. All worked in the store when they were younger. â&#x20AC;&#x153;It was a good learning experience,â&#x20AC;? Carol said, discussing how they learned a good work ethic in the store that has stayed with them to this day. â&#x20AC;&#x153;It gave them a good base, the dedication to put in extra time.â&#x20AC;? In her voice, you can tell sheâ&#x20AC;&#x2122;s ready for their next adventure. â&#x20AC;&#x153;Iâ&#x20AC;&#x2122;ve enjoyed it. Itâ&#x20AC;&#x2122;s been good. I enjoy working with the people. â&#x20AC;&#x153; That said, they also were often on call 24 hours a day, seven days a week. â&#x20AC;&#x153;We got a lot of calls at 3 a.m. for a hydraulic hose.â&#x20AC;? Robert said, â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re going to do a little travelling.â&#x20AC;? He wants to spend some time in British Columbia and Newfoundland, as well as overseas. â&#x20AC;&#x153;I want to check out the distilleries in Scotland,â&#x20AC;? he said with a gleam in his eye. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;ve had a good clientele for the last 57 years. Theyâ&#x20AC;&#x2122;ve treated us well,â&#x20AC;? He said. â&#x20AC;&#x153;We were hoping someone would make an oďŹ&#x20AC;er and keep it in town.â&#x20AC;? Thatâ&#x20AC;&#x2122;s where C&N came into play. The new ownership has no intention of moving Agratec, and indeed intends on building upon the companyâ&#x20AC;&#x2122;s success. For C&N, it greatly broadens their supplier list. Kris Carley, general manager of C&N, showed a two-page list of suppliers they will have access to. Of the warehousing system Agratec uses, Uni-Select, Carley said, â&#x20AC;&#x153;They claim to have 999 suppliers weâ&#x20AC;&#x2122;ll have access to.â&#x20AC;? He noted, â&#x20AC;&#x153;Thereâ&#x20AC;&#x2122;s a lot of overlap and competition, but it gives us access to anything the customers want.â&#x20AC;? Some things like belts and rags are common, for instance. â&#x20AC;&#x153;There are going to be some mergers of product,â&#x20AC;? he said. There will also be new capabilities for C&N, like hydraulic hose. É¸ Page B13

Level Best Technologies Ltd.

$ /HDGHU ,Q 2LOĂ&#x20AC; HOG 6HUYLFH (TXLSPHQW HOG 6HUYLFH (TXLSPHQW $ /HDGHU ,Q 2LOĂ&#x20AC; Â&#x2021; &RPER 9DF 7UXFNV Â&#x2021; 3UHVVXUH 8QLWV 6WHDPHUV Â&#x2021; :LQFK 7UDFWRUV Â&#x2021; +RUL]RQWDO P )UDF 7DQNV Â&#x2021; 0LOOLRQ %78 6XSHU +HDWHUV Â&#x2021; +RW 2LOHUV 6HUYLQJ 6DVNDWFKHZDQ 0DQLWRED 1RUWK 'DNRWD 0RQWDQD $OEHUWD 6LQFH

â&#x20AC;˘ Fluid Levels â&#x20AC;˘ Dynamometers â&#x20AC;˘ Build-Ups â&#x20AC;˘ Fall-Offs â&#x20AC;˘ Foam Depressions â&#x20AC;˘ Casing Compressors

Dave: 306-461-4322 Pat: 306-861-9986 Andrew: 306-461-4323

PIPELINE NEWS March 2013

The new locaƟon for C&N Supply will be substanƟally larger than its former premises.

ɺ Page B12 C&N Supply has been carrying product almost exclusively oilpatch. “It’s going to increase our customer base with the auto and with the ag,” Carley said. “It’s hopefully going to bring customers in that haven’t been to our store because they thought it was just oilﬁeld. Carley has been asked a lot if they were going to cut back on what Agratec was carrying. The opposite is true. They want to expand. As for the banner they are going to run under, he said, “It’s called Auto Parts Plus. We’re going to run it under C&N Supply.” The two stores will be merged into Agratec’s location on Highway 318, on the way to the golf course north of town. The location is easy to ﬁnd, and has plenty of room for trucks to get in and out. “We’ve got about 1,600 square-feet of retail front space and 2,000 square-feet of back shop, and another 1,200 square-feet of cold storage,” Carley said. That’s a substantial increase from the 900 square-feet of retail and 900 square-feet of ware-

B13

Robert Andersen, right, talks to a long-Ɵme customer.

house space in the previous C&N Supply location. “It just made sense for us with the location and three acres of land.” The space vacated in C&N’s main building will be used for oﬃce space. “We’re up to 35 people now,” Carley said. “Colin McInnes is going to stay on, and we’re adding a bookkeeper. We’re looking for one more person,” Carley said. McInnes manages C&N’s existing supply store. “We’re going to expand supply runs door-todoor, on only to (Agratec’s) customers, but ours as well. It’ll be us making a phone call – need anything this week? OK.” “There’s plenty of potential to grow this on our side and their side.” “We’re going to keep our C&N Supply phone number and the two stores will be linked by the same phone system. One call can get the store or crews. The old Agratec number will still work for the next year.” Jumping into a new sector will be a learning experience, Carley acknowledges. “There’s going to be a deﬁnite learning curve on the farm and auto.”

But in the end he feels it comes down to the fundamentals of merchandising. “Make sure you sell what you need. If the customer wants it, you get it. “We started this just over two years ago on a bit of a whim. It’s sort of exploded on us. We’ve grown it into a separate business. It’s really taken off now. This purchase will double us again right now. On the C&N Oilfield side, Carley noted, “We’ve added a couple of trucks. We’re in the process of building a seventh pressure truck. We’ve added a third chemical delivery truck and we’re building a fourth.” One is a five-ton, and the other is a three-ton. “We do a ton of fabrication here. We build thousands of feet of Tex fence as well as Texas gates. That work is primarily done when the workers aren’t busy with other projects. “We have a welder in the shop in the winter. It used to be winter filler, but now it’s been fairly big business for us. Most days we can keep one or two welders going on different projects,” Carley said.

B14

PIPELINE NEWS March 2013

Saskarc builds a lot of the guts of the carbon capture project By Brian Zinchuk Oxbow – While large companies like SNC-Lavalin and Hitachi have benefited from SaskPower’s Boundary Dam carbon capture project, what might not be known is that the $1.24-billion project has also had a substantial impact for local companies. A large portion of the “guts” of the project has been or will be built by Saskarc Industries of Oxbow. The company specializes in fabrication of very large steel items for sectors like the oilsands and potash mining. On Feb. 12, they were loading up a convoy of massive slurry pump boxes destined for Fort McMurray. Each pump box weighed 240,000 pounds. The convoy was delayed several days due to an Alberta clipper storm that blew through, however, followed by very cold weather and icy roads. As for the innards of the Boundary Dam project, Tim Cooley, marketing manager and fabrication salesperson for Saskarc said there are 11 utility modules inside it. “They carry piping and cable throughout the building. “We’ve done a lot of work for SNC. The first contract was awarded in October 2010, and delivered in late 2012. Huge cones called absorber covers were constructed by Saskarc. “The biggest pieces we’ve ever built in this shop were the flue gas cooler casing and transition,” Cooley said. They shipped in January. It was the largest, but not the heaviest, project they have done to date. “One load was 42 feet wide, another was 35

feet tall,” he said. Power lines had to be lifted. Coal haul roads were used to get the components to the power station, since he noted, “You never would have gotten that through Estevan.” “This project has represented a substantial portion of our in-house production over the last 2 years. We also subcontracted a large number of smaller components before doing the ﬁnal fabrication/assembly and inspections at our facility, which allowed us to put through a tremendous amount of steel and meet some very tight deadlines, while maintaining the highest level of quality,” Cooley said. “They’ve placed all their orders, but there’s still a lot of work in progress. We’re working on 900 feet of ducting. We’re fabricating the structural support steel. That’s all in progress right now.” That work will continue for several months. The ducting will take the exhaust gases from Unit 3 of the power plant to the new carbon capture facility. “We did an acid tank and amine tank for SNC,” he added. Those are very large stainless steel tanks crucial to the capture process. In the meantime, a second building Saskarc is constructing at its site is nearing completion. “That will be used for assembly work, insulation and cladding,” Cooley said. “Some industrial equipment from our rental division will be stored there.” The new rental division carries industrial light towers, heaters, pumps and generators. As for what’s next, he said, “We have work in progress for a few projects for the oilsands right now. We’re hoping to see more in the mining

industry.” “We’ve done a lot of work for PCS Rocanville. I believe we’re in a good position to supply the mining sector for the next few years,” Cooley said. The company will soon be doing another very large ﬂare stack for a reﬁnery.

The casing module, see here on its way to Boundary Dam Power StaƟon, was approximately 41.5-feet wide, 25-feet high and weighed a whopping 168,000lbs. Photo submiƩed

The outlet weighed in at 135,000 pounds, and was approximately 36 feet wide and , 34feet high. Photo submiƩed

The cone-like absorber covers for the Boundary Dam carbon capture project were the largest items ever built by Saskarc Industries. The inlet, seen here, is approximately 36-feet wide, 34.5 feet tall, and 135,000 pounds Photo submiƩed

We’re here for when your business meeting just won’t wait for the airlines.

Southeast’s only chartered Air Service Locally Owned and Operated 306-897-7399 www.sharptail.ca

PIPELINE NEWS March 2013

B15

Filling rigging needs Estevan – When Southern Bolt Supply moved to its new location in Estevan a few years ago, it meant there was an opportunity to offer more product. That has since crystalized into Redneck Chain and Rigging Ltd., a sister company that is run out of the same building Randy Edwards is the sole owner of Redneck Chain and Rigging. He has partners in Southern Bolt. “What was started Oct. 1, 2011 due to increased demand for rigging supplies. It’s lifting slings, wire rope slings, shackles, and all types of hooks,” he said. “It’s an entirely separate business. We dabbled in it a little, and it ended up being a big thing,” he said. “Guys come in and say, ‘Yah, you’ve got it.’ “For anything we don’t have, we have

Redneck Chain and Rigging Ltd. is an oīshoot of Southern Bolt Supply. As a separate business, it focuses on rigging needs for trucking, the oilĮeld, construcƟon and mining. Randy Edwards is the owner. Photo by Brian Zinchuk

orders coming in daily. Anything that requires custom-building, we can have in three days.” The company stocks several lengths of made-up chains

in common sizes, but they also have chain in bulk. An example would be grade 70 transport chain used for tying down loads, available in 15- and 20-foot standard

lengths. Grade 80 chain would be used for pickers, as another example. “Anyone doing overhead lifting has to have a certified sling

or chain,” Edwards said. For wire rope slings, covering a substantial portion of a wall, he said, “Three-eighths to one-inch covers most

of it. They’re anywhere from two-feet to 25feet. “We also handle bulk cable.” As for load boomers, he noted, “Everybody needs them.” Numerous shackles can be seen on the shelves, up to twoinches in size with a 35-ton capacity. Half of another wall is covered in lifting nylon slings and ratchet straps. Those straps will run up to four-inches wide and up to 30-feet long. “We have endless slings from two-feet to 20-feet,” Edwards said. An endless sling is a loop that can be configured three different ways for lifting. Cargo restraint straps, basically a mesh cargo net, are also carried. “It’s mainly trucking and oilfield, construction and mining, too,” Edwards said of their clientele.

B16

PIPELINE NEWS March 2013

Older rigs burden drilling landscape: Precision (Daily Oil Bulletin) Calgary â&#x20AC;&#x201C; A surplus of older rigs suited to vertical, shallow natural gas drilling means there's little future in that end of the market, the head of Precision Drilling Corporation said Feb. 14. Originally, the

plan was to phase out Precision's â&#x20AC;&#x153;Tier 3â&#x20AC;? drilling rigs gradually, over a few years. However, the company's exit from that market has been accelerated, Kevin Neveu, president and chief executive oďŹ&#x192;cer, made clear in a conference call regarding the

fourth quarter. â&#x20AC;&#x153;What changed our view was the dismal natural gas market that emerged in 2012. We ďŹ rmly believe the land drilling market remains oversupplied with legacy, under-performing, Tier 3 (rigs), and there's no light in that hole,â&#x20AC;?

Strength In Our Resources #6 - 461 King St. â&#x20AC;˘ Estevan, SK 637-3460 www.petrobakken.com

he said. â&#x20AC;&#x153;Others may be arriving at the same conclusion â&#x20AC;&#x201C; at least, they should be.â&#x20AC;? With three classes of drilling rigs, Precision describes its Tier 1 as â&#x20AC;&#x153;high-performance, mobile rigs of newer design and manufacture, capable of directional and horizontal drilling.â&#x20AC;? Tier 2 rigs, also termed â&#x20AC;&#x153;high-performance,â&#x20AC;? have new equipment and modiďŹ cations to improve performance, directional and horizontal drilling abilities, the company said. The company's Tier Three rig have an â&#x20AC;&#x153;acceptableâ&#x20AC;? level of performance, but usually are not capable of eďŹ&#x192;ciently drilling directional or horizontal wells, Precision said. On Feb. 14 Precision disclosed the hefty â&#x20AC;&#x201C; $192 million â&#x20AC;&#x201C; charge it took in last year's fourth quarter, as it decommissioned 52 aging Tier 3 rigs. Also during 2012, the company added about 36 new-build rigs in the Tier 1 and 2 classes. During question-andanswer that day, an analyst asked how many

FRAC TANK

RENTAL

&OHDQ )UHVK :DWHU 7DQNHUV

2LO 6DOW :DWHU 7UDQVIHUV

of Precision's Tier One drilling rigs are idle, but Precision executives chose not to answer the question. Noting day rates for drilling rigs in the United States are still slipping, an investor asked Neveu when he expected them to start coming back. â&#x20AC;&#x153;Probably when the rig count starts to move up,â&#x20AC;? he said. At the same time, as contracts for Precision's U.S. drilling rigs come up for renewal, the company is willing to talk about renewal terms with producers, Neveu added. â&#x20AC;&#x153;If the market is soft and the tide is still ebbing, we'll be ďŹ&#x201A;exible with our customers on rollovers, and show that we'll oďŹ&#x20AC;er whatever we need to do to keep [them] happy.â&#x20AC;? The company said it would spend $526 million in this year's capital budget, in what initially appeared to be an increase from the $485 million budget announced the previous month. However, in the conference call, company executives explained the higher ďŹ gure includes $41 million in carry-over spending from 2012. The company provided a breakdown, noting that of the $526 million, about $205 million will go to expansion capital, with $126 million to upgrade

capital, and roughly $195 million allocated to sustaining and infrastructure capital. By year-end 2012, Precision was carrying about $1.2 billion in total debt, slightly less than at year-end 2011. After decommissioning its 52 â&#x20AC;&#x153;legacyâ&#x20AC;? drilling rigs (30 in the U.S., 22 in Canada), Precisionâ&#x20AC;&#x2122;s ďŹ&#x201A;eet consists of 321 contract drilling rigs, of which 186 are in Canada, 127 in the U.S. and eight in international locations. In the fourth quarter of 2012, the company reported drilling rig utilization as â&#x20AC;&#x153;rig operating day utilization,â&#x20AC;? which stood at 39 per cent in Canada, down from 50 per cent in the fourth quarter of 2011. In the full year, the utilization ďŹ gure in Canada was 40 per cent, down from 46 per cent in 2011 (U.S. ďŹ gures were not available). In the fourth quarter, drilling rig revenue per utilization day in Canada and the U.S. was up 10 per cent from the prior year. The increase in average day rates for Canada was due to an improved rig mix and solid demand for Precisionâ&#x20AC;&#x2122;s â&#x20AC;&#x2DC;Tier 1â&#x20AC;&#x2122; assets, the company said. In the U.S., most of the increase was driven by higher turnkey activity, management said. É¸ Page B17

6HUYLFH :RUN )UDF 7DQNV

'HOLYHUHG +HDWHG )UHVK :DWHU ,QVXODWHG /LQHG )UDF 7DQNV P ZZZ IUHQFKWUDQVSRUW FD

OfďŹ ce/Dispatch 306-457- 3774 Forget, Saskatchewan /HDVHG 2SV &RPSDQ\ 'ULYHUV DOZD\V ZHOFRPH WR DSSO\

5 )UHQFK 7UDQVSRUW /WG The Safety Association for Candadaâ&#x20AC;&#x2122;s Upstream Oil and Gas Industry

KDV GHYHORSHG LPSOHPHQWHG DQG DXGLWHG D

+HDOWK 6DIHW\ 0DQDJHPHQW 6\VWHP

â&#x20AC;˘ Fluid Levels â&#x20AC;˘ Dynamometers â&#x20AC;˘ Pressure Surveys â&#x20AC;˘ Foam Depressions â&#x20AC;˘ Equiment Sales, Rentals & Repairs

Scott.........861-1001 Anita .........861-7305 Keith .........861-2243 Dave .........452-8401

â&#x20AC;˘ Repairs done on all models including: Sonolog, Echometer, DX, etc. â&#x20AC;˘ Major parts and supplies in stock at all times

Ryan .........458-7790 Chantal .....861-9796 Brett ..........891-6303 Spare ........891-6966

Box 4 â&#x20AC;˘ Midale, SK S0C 1S0 Phone: (306) 458-2367 Fax: (306) 458-2373 email: 247enterprisesltd@sasktel.net

PIPELINE NEWS March 2013

B17

Precision Drilling has decommissioned 52 of its aging “Tier 3” rigs. This rig was acƟve in southeast Saskatchewan in early February near Stoughton. Photo by Brian Zinchuk

ɺ Page B16 During the quarter, 41 per cent of Precision’s utilization days in Canada were generated from rigs under term contract, compared with 38 per cent in 2011, while in the U.S., 68 per cent of utilization days were generated from rigs under term contract, compared to 79 per cent in the 2011 period. At the end of the quarter, Precision had 54 drilling rigs working under term contracts in the U.S. and 55 in Canada. Precision reported 8,242 “drilling rig utilization days” (drilling days plus move days) in Canada in the fourth quarter, a drop of 23 per cent from the comparable 2011 quarter. In the U.S., meanwhile, drilling rig utilization days were 8,014, 19 per cent lower than in the 2011 quarter, due to lower demand as producers conserved cash and deferred drilling into 2013, management said. Most U.S. activity during the quarter came from oil and liquids-rich gas related plays. On average, Precision had eight rigs working internationally in the fourth quarter compared with two in the comparable 2011 quarter. Precision’s average active rig count of 87 rigs in the U.S. in the fourth quarter was down 20 rigs from the same period in 2011. Precision is currently running 83 rigs in the U.S. and expects its active rig count there to remain flat in the coming months. In Canada, Precision averaged 90 rigs operating in the fourth quarter, down 27 rigs from the same period in 2011 and up six rigs over last year’s third quarter. Management expects strong levels of activity to continue in this year’s first quarter until spring breakup and expects to benefit from the fleet enhancements made in 2012. Precision is exiting the Tier 3 contract drilling business, but said it would retain 26 drilling rigs for seasonal, stratification and turn-key drilling work, and the Tier 3 rigs will be categorized as ‘PSST’ rigs. Precision will focus instead on the stronger Tier 1 and Tier 2 markets.

WHERE ENERGY MEETS SAFETY

We support the people who keep our communities safe. Our Safe Community program provides firefighters, police departments and other first responders with funding for everything from equipment to training. The program gives the men and women who protect us the support they need to ensure the safety and wellbeing of our communities, now and into the future. Enbridge delivers more than the energy you count on. We deliver on our promise to help make communities better places to live. It’s part of the reason we were named one of the Global 100 Most Sustainable Corporations in the World. Enbridge.com/InYourCommunity

BADGER DAYLIGHTING™

Full Service Hydrovac Fleet Available To Saskatchewan Shoring Sales & Rentals

• Tandem Tandem • Tri Axle • Tandem •4x4 Regina........................................ (306) 531-9487 Saskatoon ................................. (306) 934-2964 Swift Current ........................... (306) 773-0724 Lloydminster ........................... (306) 875-1640 Kindersley ................................ (306) 463-6006 Carlyle ....................................... (306) 577-3400 Weyburn ................................... (306) 848-0906 Carnduff/Oxbow .................... (306) 482-5270

Toll Free: 1-800-465-4273

www.badgerinc.com

FIND OUT MORE

B18

PIPELINE NEWS March 2013

B19

Weyburn 2013 Oilmenâ&#x20AC;&#x2122;s Bonspiel Â&#x201E; Story and photos by Brian Zinchuk Weyburn â&#x20AC;&#x201C; Twenty-four teams competed in the 2013 incarnation of the Weyburn Oilmenâ&#x20AC;&#x2122;s Bonspiel Jan. 26-27. The event is conducted in a six-end skins format. While a few people came from Calgary, it was mostly locals, according to Michael Mainil, one of the organizers. In the A-event, the winning team was B & T Maintenance, made up of

skip Bill Jordan, third Ryan Skjerdal, second Terrill Bloor and lead Darren Moore. The B-event went to Jerry Mainil Ltd. Their skip was Kim Brady, with third JeďŹ&#x20AC; Mosley, second Calvin Tracey and lead Darcy Cretin In the C-event, Prairie PetroChem #3 was the winning team. They were composed of skip Andrew McMillan, third Brad Wheeler, second Aaron Patzer and lead Darin Bitz. The B-event went to Jerry Mainil Ltd. (right to leĹ&#x152;) Their skip was Kim Brady, with third JeÄŤ Mosley, second Calvin Tracey and lead Darcy CreĆ&#x;n. Photo submiĆŠed BriĆŠni Maurer makes her delivery. Maurer works in administraĆ&#x;on at Jerry Mainil Ltd.

In the 2013 Weyburn Oilmenâ&#x20AC;&#x2122;s Bonspiel, A-event, the winning team was B & T Maintenance, made up of (right to leĹ&#x152;) skip Bill Jordan, third Ryan Skjerdal, second Terrill Bloor and lead Darren Moore. Photo submiĆŠed

BOOK NOW

In the C-event, Prairie PetroChem #3 was the winning team. (right to leĹ&#x152;) They were composed of skip Andrew McMillan, third Brad Wheeler, second Aaron Patzer and lead Darin Bitz. Photo submiĆŠed Darrent Woodard, a salesman for Prairie Petro-Chem, launches out of the hack.

Brady OilÄŽeld Services director of operaĆ&#x;ons ScoĆŠ Juravle glides down the ice.

:LWK HYHU\ ZLQGRZ GRRU RUGHU SODFHG HQWHU \RXU QDPH WR ZLQ D WRS RI WKH OLQH :HLVHU KDQGOH VHW ORFN

HSE Integratedâ&#x20AC;&#x2122;s Tyler Tollefson has an eagle-eye stare at his target as he leaves the hack.

%RRN \RXU ZLQGRZV GRRUV WRGD\ DQG JHW WKH HDUO\ ERRNLQJ ERQXV

6DYH %LJ 0HWDO &ODGGLQJ

7KLQNLQJ ZLQGRZV" 6KRS DQG FRPSDUH

,QVLVW RQ &:' ZLQGRZV DQG GRRUV 39& :LQGRZV 0HWDO FODG ZLQGRZV 3DWLR DQG JDUGHQ GRRUV ,QVXODWHG VWHHO GRRUV

&DOO IRU FRPSDUDWLYH SULFLQJ

0DQ\ W\SHV SURĂ&#x20AC; OHV DYDLODEOH 1RZ VWRFNLQJ YDULRXV OHQJWKV RI *DOYDOXPH ZKLWH ZKLWH PHWDO )DUP DQG LQGXVWULDO JDOYDQL]HG JDOYDOXPH DQG FRORXUHG JDXJH PHWDO RUGHUHG WR VXLW \RXU VL]H DQG QHHGV 3KRQH IRU SULFLQJ ZLWK \RXU LQGLYLGXDO UHTXLUHPHQWV

:22' &28175< (67(9$1 0&/($1 7,6'$/( 3K Â&#x2021; )D[ .HQVLQJWRQ $YHQXH (VWHYDQ +RXUV 0RQ )UL D P S P 6DW D P S P VISIT US ON OUR WEBSITE: www.wood-country.com

+LJK 6SHHG ,QWHUQHW 6DWHOOLWH 3DJLQJ 7ZR :D\ 5DGLRV +LJK 6SHHG 6DOHV DQG 6HUYLFH :LUHOHVV 6&$'$ Â´<RXU &RPPXQLFDWLRQV ([SHUWVÂľ WK 6WUHHW (VWHYDQ 6. Â&#x2021;

Ĺ&#x2014;sÉ ÂľÇ&#x2039;Ă&#x17E;Çź ÂŽĂ&#x17E;EsÇ&#x2039; ÂľÇ&#x2039; ÇźĂ&#x17E;Ĺ&#x2DC;Âś Âś

Ç˘ ÂŻsÇźÉ´ Ĺ? ÇźÇŁ

NĹ¸Ĺ&#x17D;sÇŁ Ă&#x17E;Ĺ&#x2DC; É´sÄśÄśĹ¸É Ĺ¸Ç&#x2039; EÄś OÄ¨Ęł ËŁË&#x2026;ÉŽË ËĄË&#x2026; ÇŁĂ&#x152;ssÇźÇŁĘł É&#x2122;sÇ&#x2039;É´ ÄśĂ&#x17E;ÂśĂ&#x152;Çź Ĺ&#x17D; ÇźsÇ&#x2039;Ă&#x17E; Äś ÂśÇ&#x2039;s Çź ÂŻĹ¸Ç&#x2039; É ÄśÄ¨É É´ÇŁ Ë&#x201C; ĘŞ Ĺ¸Ĺ¸Ç&#x2039;Ă&#x17E;Ĺ&#x2DC;ÂśĘł

NĹ¸Ĺ&#x2DC;Çź Ă&#x17E;Ĺ&#x2DC;s_ Ë&#x201C; ĹˇĆźsĹ&#x2DC; DĹ¸ÇźÇźĹ¸Ĺ&#x17D;ÇŁ ÂŻĹ¸Ç&#x2039; Ĺ¸Ă&#x17E;Äś ÇŁĆźĂ&#x17E;ÄśÄśÇŁ Ĺ&#x2DC;_ ÇŁĂ&#x152; OÄ¨ sĹ&#x2DC;ÇźÇ&#x2039; Ĺ&#x2DC;OsÇŁĘł

ÄśÄś ÇŁĂ&#x17E;Ę&#x160;sÇŁ

24 hr service 204-838-2050 *36 7UDFNLQJ

Ç˘ ÂŻsÇźÉ´ Ĺ? ÇźÇŁ

ÂŽĹˇÇ&#x160; Ç&#x160;rĹ&#x2014;Çť

Virden, MB â&#x20AC;˘ Fresh Water Hauling â&#x20AC;˘ Oil and Salt Water Transfers â&#x20AC;˘ Service Work â&#x20AC;˘ Steamer Unit foxtailhauling@hotmail.com

(VWHYDQ $XWKRUL]HG 'HDOHU

Magnaflo Rentals Inc.

ÂŽĹˇÇ&#x160; Ç˘ Äľr

Ĺ&#x2014;sÉ ÂľÇ&#x2039;Ă&#x17E;Çź ÂŽĂ&#x17E;EsÇ&#x2039; ÂľÇ&#x2039; ÇźĂ&#x17E;Ĺ&#x2DC;Âś Âś NĹ¸Ĺ&#x17D;sÇŁ Ă&#x17E;Ĺ&#x2DC; É´sÄśÄśĹ¸É Ĺ¸Ç&#x2039; EÄś OÄ¨Ęł ËŁË&#x2026;ÉŽË ËĄË&#x2026; ÇŁĂ&#x152;ssÇźÇŁĘł É&#x2122;sÇ&#x2039;É´ ÄśĂ&#x17E;ÂśĂ&#x152;Çź Ĺ&#x17D; ÇźsÇ&#x2039;Ă&#x17E; Äś ÂśÇ&#x2039;s Çź ÂŻĹ¸Ç&#x2039; É ÄśÄ¨É É´ÇŁ Ë&#x201C; ĘŞ Ĺ¸Ĺ¸Ç&#x2039;Ă&#x17E;Ĺ&#x2DC;ÂśĘł

Ë Ë&#x2021;Ę° Ë Ë Ë&#x20AC;ËĄË&#x2021; Ĺ¸Ç&#x2039; ËĄË&#x2021; ÇźĂ&#x152;Ă&#x17E;OÄ¨Ĺ&#x2DC;sÇŁÇŁ

ÄśÄś ÇŁĂ&#x17E;Ę&#x160;sÇŁ

Magnaflo Rentals Inc.

ÂŽĹˇÇ&#x160; Ç˘ Äľr

Ë Ë&#x2021;Ę° Ë Ë Ë&#x20AC;ËĄË&#x2021; Ĺ¸Ç&#x2039; ËĄË&#x2021; ÇźĂ&#x152;Ă&#x17E;OÄ¨Ĺ&#x2DC;sÇŁÇŁ

B20

PIPELINE NEWS March 2013

Itâ&#x20AC;&#x2122;s a four-peat for D&C Melin curlers

LeĹ&#x152; to right are members of the A-Event champs from D&C Melin Trucking: Brad Johnson, Colin Tanton, DusĆ&#x;n Small and Dallas Melin. Photo submiĆŠed

Wainwright â&#x20AC;&#x201C; The 2013 Wainwright Oilmenâ&#x20AC;&#x2122;s Bonspiel held the weekend of Feb. 1 to 3 goes into the history books with some similar story lines to last year. It was dĂŠjĂ vu for the D&C Melin Trucking team who defended their A-Event title for the fourth year in a row with Brad Johnson, Colin Tanton, Dustin Small and Dallas Melin onboard. The only switch up for the perennial champs this year is newcomer Brad Johnson ďŹ lling a vacancy left by 2012 winning rinkâ&#x20AC;&#x2122;s Dean Spornitz. New to the B-Event winnersâ&#x20AC;&#x2122; circle this year is the Carson Energy 1 team of Brad Bartoski, Dean Brooks, John Clark and Richard Schult. The competition at the Wainwright Curling Club also produced a familiar outcome for organizer Bob Bishop and his Baker Hughes team that lost out in the D-Event a year ago. â&#x20AC;&#x153;We didnâ&#x20AC;&#x2122;t so well,â&#x20AC;? he chuckled. â&#x20AC;&#x153;We won the ďŹ rst one and lost the next two. Weâ&#x20AC;&#x2122;ll say our opposition played us tough this year.â&#x20AC;? Fortunately, there were three Baker Hughes teams entered, with the Lloydminster version of Dustin Haun, Chris Volk, Jessie Guy and Cody Leskow capturing the C-Event title and some corporate glory. The bragging rights to the D-Event title go to the Carson Energy 2 outďŹ t of Rene Mailloux, Mac Dodd, Brad Flowers and Justin Woodward. â&#x20AC;&#x153;We had some good competition and we had some good curling,â&#x20AC;? said Bishop in summing up the weekend. â&#x20AC;&#x153;We are up by one entry to 22 teams. This is the 35th bonspiel, and the second one that weâ&#x20AC;&#x2122;ve gone with the date in the ďŹ rst week of February. â&#x20AC;&#x153;For the most part, itâ&#x20AC;&#x2122;s a weekend that we are going to try sticking with again for another year.â&#x20AC;? The weekend weather was good for travel although most of the rinks were from local service companies with Penn West being the only oil producer to ice a team. â&#x20AC;&#x153;We have a pretty steady group of about 15 teams that come every year and another six or seven that are kind of rotating around,â&#x20AC;? said Bishop. â&#x20AC;&#x153;We are hoping to grow the number if this weekend catches on.â&#x20AC;? É¸ Page B21

JACK!

ITâ&#x20AC;&#x2122;S ABOUT TIME

Jack knows time is money PAYS FOR ITSELF

INSTALLATION

YOUR TIME

The increase in oil/gas production is immediately measureable not only in time, but real dollars.

It only takes a few hours to have your compressor up and running, practically eliminating production downtime.

Our safety qualified installers will perform maintenance checks when required, onsite, saving you the trip in.

â&#x20AC;&#x201C; 4 WEEKS

â&#x20AC;&#x201C; ZERO

â&#x20AC;&#x201C; 1 DAY

www.annugas.com Toll Free

1.866.ANNUGAS

COMPRESSION

CONSULTING

LTD.

ANNUGAS ANNUGAS PRODUCTION PRODUCTION ENHANCER ENHANCER ÂŽ

Meet the Carson Energy 1 B-Event winners: Brad Bartoski, Dean Brooks, John Clark and Richard Schultz. Photo submiĆŠed

&/,)) 1$1.,9(// 758&.,1* /7'

.DOYLQ 1DQNLYHOO 3UHVLGHQW 2IĂ&#x20AC;FH )D[

&ODXGLD 0XOOLV 9LFH 3UHVLGHQW %R[ .LVEH\ 6. 6 & / QDQNLYHOOWUXFNLQJ#VLJQDOGLUHFW FD

PIPELINE NEWS March 2013

B21

This yearâ&#x20AC;&#x2122;s C-Event champs are the Lloydminster Baker Hughes team of DusĆ&#x;n Haun, Chris Volk, Jessie Guy and Cody Leskow. Photo submiĆŠed

Éş Page B20 The event was moved to the ďŹ rst week of February in 2012 after the ice compressor went on the fritz at the curling club in 2011 prior to the ďŹ rst week of November when the bonspiel was originally scheduled. The new time however, didnâ&#x20AC;&#x2122;t slow down the pace of oil and gas activity in the region or sales for Bishop who is a ďŹ eld manager for Bakker Hughesâ&#x20AC;&#x2122; upstream chemical division. â&#x20AC;&#x153;We sell a lot of heavy oil chemicals and a lot of corrosion inhibitors,â&#x20AC;? said Baker. â&#x20AC;&#x153;It has been really busy. It looks good for us this year actually.â&#x20AC;? The Carson Energy 2 D-Event winners are curlers Rene Mailloux, Mac Dodd, Brad FlowBishop said he has been too busy to do as much curling as would like so ers and JusĆ&#x;n Woodward. Photo submiĆŠed he got it all done at once at the oilmenâ&#x20AC;&#x2122;s with a yearâ&#x20AC;&#x2122;s worth of entertainment thrown in. H The bonspiel featured the popular banquet and dance at the Elks Hall with : HU WR H musical entertainment provided by the G-String â&#x20AC;&#x201C; a local three man band. OLY J VLW H G UL â&#x20AC;&#x153;They are awesome. They play a little rock and country,â&#x20AC;? said Bishop. H WK The banquet also featured a silent auction of donated prizes to raise money for a variety of charities ranging from the local library and food bank to victim services and the curling club. â&#x20AC;&#x153;We get lot of support, especially from the local area, and even businesses from Lloydminster,â&#x20AC;? said Bishop. â&#x20AC;&#x153;In this whole area, the oilpatch does a great job on donating. Itâ&#x20AC;&#x2122;s busy enough. Thereâ&#x20AC;&#x2122;s lot of cash out there. People are willing to support it for sure.â&#x20AC;? Bishop gave special thanks to Raider Well Servicing in Lloydminster which hasnâ&#x20AC;&#x2122;t entered a team in year, but picks up the tab each year for cab rides so players donâ&#x20AC;&#x2122;t drink and drive. â&#x20AC;&#x153;They pay all the cab fares Friday, Saturday and Sunday, if necessary,â&#x20AC;? said Bishop. â&#x20AC;&#x153;Theyâ&#x20AC;&#x2122;ve being doing that for as long as I have been on the committee for Weekdays 7:00 a.m. - 5:30 p.m.; Sat. 7:30 a.m. - 5:00 p.m. â&#x20AC;˘ After Hours Call CHAD 634-0195 or cell 421-1896 12 years. The bill is anywhere from $1,000 to $1,500. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s awesome. We really appreciate sponsors like that.â&#x20AC;? Money from team registration fees is used to buy event prizes that are worth competing for. â&#x20AC;&#x153;We did some shopping at the Mancave at Bumper to Bumper in town. 'HYRQLDQ 6W Â&#x2021; 3K RU We got a lot of Harley (Davidson) stuďŹ&#x20AC; there,â&#x20AC;? said Bishop. â&#x20AC;&#x153;We got some Harley neon clocks and things like that. We try to get some diďŹ&#x20AC;erent things every year.â&#x20AC;? Bishop and his fellow committee members will hold a wrap-up meeting soon then he and other 3URGXFLQJ SXPS MDFN EHOW JXDUGV IRU Ň&#x2039;V DQG Ň&#x2039;V curlers will ponder how to end the D&C Melin team dynasty in 2014.

7LPEHUV LQ 6WRFN

Âľ [ Âľ Âˇ Âˇ Âˇ /HQJWKV $YDLODEOH

[ 0RWRU +RXVHV

5('5,9(5 /80%(5 /7'

:(Âˇ5( %$&. 1HZ EHOW JXDUGV PDGH E\ /LJKW 5HVLQ 7UDQVIHU 0ROGLQJ /570

$ 'LYLVLRQ RI -- 7UXFNLQJ /WG Â&#x2021; 2LOILHOG *UDYHOLQJ Â&#x2021; *UDYHO &UXVKLQJ 6FUHHQLQJ Â&#x2021; 6HDOHG 7UDLOHUV IRU +DXOLQJ &RQWDPLQDWHG :DVWH Â&#x2021; /HDVH 3UHSDUDWLRQ 5HFODPDWLRQ Â&#x2021; *UDGLQJ Â&#x2021; ([FDYDWLQJ Â&#x2021; +HDY\ (TXLSPHQW +DXOLQJ Â&#x2021; &25 &HUWLILHG 72// )5(( /' $//$1

&UHHOPDQ 6DVN

6HUYLQJ WKH LQGXVWU\ VLQFH 'LVSDWFK 5RG /DUU\ /DUU\ &HOO 6KRS 2IĂ&#x20AC;FH SKRQH )D[

(67(9$1 3/$67,& 352'8&76 /7' Your One Stop Shop For Fibreglass Tanks

Toll Free: 1-888-638-6433 or 1-306-634-6400 Plant: 1-306-388-2344 Fax: 1-306-634-7828 email: eppl@sasktel.net website: www.estevanplastics.ca

B22

PIPELINE NEWS March 2013

Safety isnâ&#x20AC;&#x2122;t just for the workplace. Drive with care.

A message from Crescent Point Energy, a proud partner in your community.

www.crescentpointenergy.com

PIPELINE NEWS March 2013

B23

Scotties berth wows Kara the curler LeĹ&#x152; to right are Lloydminster curlers Jinaye Ayrey, Taryn Holtby, Kara Johnston and Jill Shumay from Martensville who headed to Kingston from Feb. 16 to 24 to represent Saskatchewan in the ScoĆŤes Tournament of Hearts naĆ&#x;onal womenâ&#x20AC;&#x2122;s curling championship. Photo submiĆŠed

Lloydminster â&#x20AC;&#x201C; Kara Johnston, director of energy, entrepreneurship and Saskatchewan programming at Lakeland College, is also Kara the curler in her sporting life. Johnston headed into the prestigious Scotties Tournament of Hearts held in Kingston, Ont. from Feb. 16 to 24 with great expectations as a member of Team Saskatchewan. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s pretty exciting. Itâ&#x20AC;&#x2122;s pretty surreal actually,â&#x20AC;? said Johnston, a few days after winning the SaskPower Scotties Tournament of Hearts provincials in Balgonie on Jan. 27. Johnston plays third on the team skipped by her cousin Jill Shumay with lead Jinaye Ayrey and second Taryn Holtby. They represent the Maidstone Curling Club. â&#x20AC;&#x153;Our goal is to go and play as good and consistently as we did in provincials,â&#x20AC;? said Johnston. â&#x20AC;&#x153;Of course, we would like to make the playoďŹ&#x20AC;s. Thatâ&#x20AC;&#x2122;s deďŹ nitely our number one goal. We want to represent Saskatchewan well and curl well and be there at the end of the week. â&#x20AC;&#x153;We are not happy just to go to the show.â&#x20AC;? Johnstonâ&#x20AC;&#x2122;s name on the Shumay rink came as a surprise to many people in Lloydminster when

she was introduced at the Lloydminster campus to thank Cenovus Energy for their $1.5 million donation on Jan. 30. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s ironic you say that, because our president didnâ&#x20AC;&#x2122;t know I was a curler either,â&#x20AC;? laughed Johnston following the Cenovus presentation. â&#x20AC;&#x153;He asked my vice-president yesterday, â&#x20AC;&#x2DC;Is that our Kara?â&#x20AC;&#x2122; and he said, â&#x20AC;&#x2DC;Yes thatâ&#x20AC;&#x2122;s our Kara.â&#x20AC;&#x2122;â&#x20AC;? The Shumay rink lost just one game at the provincials, going down 5-4 to Stephanie Lawton in the 1 versus 2 Page PlayoďŹ&#x20AC; game, before rebounding with an 8-3 win in the semi-ďŹ nal over the Amber Holland rink to face Lawton again in the ďŹ nal. In the showdown, Shumay scored a single in the ďŹ nal end to defeat the Lawton foursome 8-7, prompting Johnston to share the news ďŹ rst with some of her co-workers. â&#x20AC;&#x153;I teleconferenced into a meeting in Alberta with the other vice-presidents and deans of energy,â&#x20AC;? said Johnston, who expected her team to be an underdog at the Scotties. â&#x20AC;&#x153;On the national scene, we go in as relatively unknowns, but we know all the teams there,â&#x20AC;? she said. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;ve played in World Curling Tour events

and have had some success. We are not unknown by the ďŹ eld.â&#x20AC;? Johnston will be well known for being more than seven-and-a-half-months pregnant at the Scotties, but she made it clear that she could play. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s been ďŹ ne so far. My body has kind of changed and grown throughout the curling season, so itâ&#x20AC;&#x2122;s all just natural now,â&#x20AC;? she said. She also joked that the team wouldnâ&#x20AC;&#x2122;t be penalized for icing too many players. â&#x20AC;&#x153;I wonâ&#x20AC;&#x2122;t be disqualiďŹ ed, but I did have to get a letter from my doctor for the Canadian Curling Association to make sure I am able to compete,â&#x20AC;? she said. â&#x20AC;&#x153;I am in good shape and I work hard. I still have a couple of months to go, so Iâ&#x20AC;&#x2122;m safe.â&#x20AC;? Her baby is due in April and she repeated she wonâ&#x20AC;&#x2122;t be naming the child Scott if itâ&#x20AC;&#x2122;s a boy as she told the media in Regina covering the provincials. É¸ Page B25

5ISQVO <QUM .Ta AW]Z ?Ia

?M 7NNMZ KPIZ\MZ IQZ [MZ^QKM _Q\P [INM\a IVL XI[[MVOMZ KWUNWZ\ I[ W]Z PQOPM[\ XZQWZQ\a

:(Âˇ9( 029(' :(Âˇ9( 029(' 1(: /2&$7,21

KDV SXUFKDVHG $*5$7(& ,17(51$7,21$/ /7' RI &DUQGXII

:H DUH \RXU QHZ

+Z\ 1 LQ

&DUQGXII 6.

'HDOHU

3OHDVHG WR VHUYH WKH RLOĂ&#x20AC;HOG DXWRPRWLYH DQG DJULFXOWXUH LQGXVWULHV XQGHU RQH URRI 6WRS LQ 72'$< DQG VHH ZKDW ZH KDYH WR RIIHU & 1 2LOĂ&#x20AC;HOG 6XSSO\ /WG %R[ Â&#x2021; +Z\ 1 &DUQGXII 6DVNDWFKHZDQ 6 & 6 7HOHSKRQH Â&#x2021; )D[ (PDLO VXSSO\#FDQGQRLOĂ&#x20AC;HOG FRP

B24

PIPELINE NEWS March 2013

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

Office 1-306-453-4470 Fax 1-306-453-4404

PO Box 1089, Carlyle, Saskatchewan S0C 0R0 Phone: (306) 453-4411 Fax: (306) 453-4404

Manager 1-306-577-9960 Dispatcher 1-306-577-9801

Specializing in Non Damaging Biodegradable Drilling Fluids Designed for Horizontal Drilling Division President (306) 577-9900 Field Supervisor (306) 452-8182 Field Supervisor (306) 577-9962

“Serving The Oil and Gas Industry with 24 Hour Drilling g Fluid Service”

Warehouse Manager (306) 577-3347

Designing & Implementing Production Chemicals for Western Canada Cell: 306-575-7521 Of¿ce: 306-453-4414 Fax: 306-453-4415

PIPELINE NEWS March 2013

B25

Curling competitively since she was a teen ɺ Page B23 The media in Kingston could be asking Taryn Holtby a lot of questions as she is the oldest sister of Braden Holtby, goaltender for the Washington Capitals in the National Hockey League. Johnston said beforehand that she would be ready to tell reporters that thanks to years of practice, she and her teammates have what it takes to score points and protect their end like Braden does for the Caps. “I am have been curling competitively since I was a teenager,” said Johnston. “I curled competitively in junior Saskatchewan. I have lost three Saskatchewan Junior finals. “Jill was the first skip I ever had. We curled for Kara Johnston, director of energy programming at Lakeabout eight or nine years land College, laughs about being introduced as a member of Team Saskatchewan compeƟng at the 2013 Scottogether and I curled in Ɵes Tournament of while thanking Cenovus Energy for Alberta for a few years. their $1.5 million donaƟon to Lakeland College on Jan. We actually got third in 30. She joked she would be wearing an extra large T-shirt the Alberta Scotties in at the Scoƫes as she would be seven-and-a-half-months 2011. pregnant during the event. Photo by Geoī Lee “Then I moved over to Saskatchewan to curl with her and we got third in the Saskatchewan Scotties in 2012, and this year we won it.” Johnston, Holtby, and Ayrey live in Lloydminster, while Shumay hails from Martensville where they did a lot of their curling last year in a super league. The team is affiliated with Maidstone in order to qualify as a Saskatchewan team since Lloydminster straddles the border with Alberta. Scott Manners from Lloydminster skipped Team Saskatchewan in the 2012 Brier, the Canadian men’s curling championship. “Scott has been awesome. He’s been very supportive of us and has given us lots of advice. We will definitely take that to heart when we go,” said Johnston. Johnston said she also has the support and blessing of Lakeland College when it comes to juggling championship curling with her job at the Lloydminster campus. “I have had nothing but well-wishes and great support, and I know that they will support me as best they can while I am gone,” said Johnston in Janu-

>Ykl Z][geaf_ KYkcYl[`]oYf k d]Y\af_ Ym[lagf [gehYfq

House & Lg. Household Auction—Estevan Dennis & Doreen Christofferson Saturday, March 16

ary. “It’s a great team environment here, so they will pull together while I am gone and make sure that anything that needs to be taken care of does. I am very fortunate.”

2013 AUCTIONS Large Farm Equipment Auction—Lemberg Don & Kate Gardiner M Mon dayy, AApril pril 8 pri Monday,

Farm Equipment Auction—Fillmore Champion Acres Ltd. (Rod Boll) Wednesday, April 10

(VWDWH 6DOH

Box 831, Estevan, SK S4A 2A7 Phone: (306) 634-9512, (306) 421-2928, (306) 487-7815

Farm Equipment Auction—Weyburn Bob & Donalda Johnston dayy, April p 12 Friday,

(VWDWH 6DOH

Farm Equipment Auction—Radville Darald & Marlene Marin Saturday, April 13

Prem. Farm Equip. Auction—Radville Dennis Cherpin & Eugene Fradette Monday, April 15

Farm Equipment Auction—Pangman Stan & Carol Doughty Wednesday, April 17

Farm Equipment Auction—Lemberg Warren Domres Friday, April 19

Farm Equipment Auction—Balcarres Garth & Marla Hurford Saturday, April 20

Farm Equipment Auction—Lang Brian Dreger Monday, April 22

Lg. Multi-Farm Equip. Auction—Arcola Ray & Ann Luhr & Scott Hewitt Saturday, June 8

Farm & Livestock Auction—Grenfell Dallas & Carol Piller Monday, June 10

Farm Equipment Auction—Lampman Don & Warren Wilhelm Sat., June 15

Farm & Livestock Equip. Auction—Forget Andrew & Rita Verbeem Mon., June 17

Equipment, RV, Vehicle Auction—Estevan CONSIGN NOW! Saturday, June 22

Licensed, Bonded and Insured

P.L. 311962

www.mackauctioncompany.com

B26

PIPELINE NEWS March 2013

Darren Williams - VP Of Sales Tremcar Inc. Sales (306) 361-5559 Northern Saskatchewan - Jason Hugo (306) 551-8265 Southern Saskatchewan - Suzanna Nostadt (306) 861-2315 Tremcar West Inc. offers our customers a certified repair shop with qualified workers specializing in:

• Tank Trailer Repair • PIVK B620 Inspections • Auto Greasing • SGI Inspections • Trouble Shooting ABS Systems • Stock and Sell Parts • Leasing Available

Suzanna Nostadt - Vice President (306) 861-2315 Bruce Palmer - Service Manager (306) 861-2841 Bill Hunter - Parts Manager (306) 842-6100 5-22nd Avenue SE Weyburn, SK (306) 842-6100

Paul Bacik - Service Manager (306) 381-8265 Jason Wagner - Parts Manager (306) 931-9757

202 Melville Street Saskatoon, SK (306)931-9777

ZZZ WUHPFDU FRP

PIPELINE NEWS March 2013

B27

Unity curlers set to rock and putt Unity â&#x20AC;&#x201C; The more the merrier. Thatâ&#x20AC;&#x2122;s the belief of Unity Oil Personâ&#x20AC;&#x2122;s Bonspiel organizer Grant Huber who is hoping to attract as many teams as possible for this yearâ&#x20AC;&#x2122;s event from Feb. 28 to March 3. The new normal set a year ago is 22 teams, a number that Huber hopes to beat. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;d like to have more. You can never have too many. Itâ&#x20AC;&#x2122;s usually the same people that keep coming back,â&#x20AC;? he said. The organizing committee is relying on e-mail instead of faxes this year in an eďŹ&#x20AC;ort to go viral with marketing. â&#x20AC;&#x153;With e-mail, it seems to be a little better to get ahold of some guys,â&#x20AC;? said Huber. â&#x20AC;&#x153;Our sponsorship is doing really well â&#x20AC;&#x201C; everybody is really good that way.â&#x20AC;? This year, Country Ford in Wilkie is donating a TV to be contested by 10 ďŹ nalists in a unique putting competition with a curling twist as part of the banquet entertainment. â&#x20AC;&#x153;We have two putting greens about 20-feet long,â&#x20AC;? said Huber. â&#x20AC;&#x153;Everyone gets three putts for $10 and the highest score gets into the playoďŹ&#x20AC;s. â&#x20AC;&#x153;The target is rings like the curling rings with more points for a button shot, and the further out you go, the fewer points you get. â&#x20AC;&#x153;We do have a hole in the carpet. If you get in there, you get the most points and a free drink if you make it. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s good. It keeps people around until the dance starts,â&#x20AC;? added Huber. OďŹ&#x20AC; the ice, Huber is trying to ďŹ nd a buyer for his repair and welding shop called Grant Huber Machining. â&#x20AC;&#x153;I had a company from Quebec that wanted to come and take a look, but they never did,â&#x20AC;? he said. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s a repair shop, a machine shop and a welding shop. I ďŹ x pretty much anything in the area. Thereâ&#x20AC;&#x2122;s a lot of oilďŹ eld and a little bit of ag work.â&#x20AC;? Unity keeps adding to its oil and gas business directory with the Torq Transloading facility at the North West Terminal and Altex Energyâ&#x20AC;&#x2122;s new transloading facility which is located close to Huberâ&#x20AC;&#x2122;s business by the Cargill elevator. â&#x20AC;&#x153;Theyâ&#x20AC;&#x2122;ve got eight tanks in there now, and there are four more coming there pretty soon,â&#x20AC;? said Huber. â&#x20AC;&#x153;The more businesses in the town, the better.â&#x20AC;? As a curler, Huber isnâ&#x20AC;&#x2122;t sold on the idea that regional growth in the oil and gas industry will bring more bonspielers to Unity this year.

â&#x20AC;&#x153;Curling, in general, all over the country I think is down,â&#x20AC;? he said. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;ll be happy to keep the same or if we get one or two more, it would be great.â&#x20AC;? Entry fees of $280 per team go toward prizes and improvements at the curling club. This year will be the second time that bonspiel players will get to use the ďŹ ve new sets of curling rocks that the Unity Curling Club purchased last spring with bonspiel proceeds. The new rocks will last 40 years. â&#x20AC;&#x153;They are a little heavier so the ice seems keener â&#x20AC;&#x201C; they will keep going because there is more momentum,â&#x20AC;? said Huber. The stones may help his Grant Huber Machining team to avenge their Aevent loss in last yearâ&#x20AC;&#x2122;s ďŹ nal against R.E. Line Trucking. â&#x20AC;&#x153;Iâ&#x20AC;&#x2122;m going to try, but you never know will happen,â&#x20AC;? said Huber who admits he hasnâ&#x20AC;&#x2122;t done much curling lately. â&#x20AC;&#x153;Iâ&#x20AC;&#x2122;ve been taking it easy.â&#x20AC;?

Slick Drill Collar & Heavy Weight Pipe Rental Weekly & monthly packages available

Call: 306-421-0235 or 306-421-6374

ENVIROTRAP SYSTEMS

Responsible Product From a Responsible Company

63+$*625% 6DOHV IRU 2LO 6SLOOV Â&#x2021; )LEHUJODVV 3LSHOLQH &RQVWUXFWLRQ Â&#x2021; 6DQG DQG *UDYHO Â&#x2021; %DFNKRH 6HUYLFH Â&#x2021; %REFDW 6HUYLFH Â&#x2021; (QYLURQPHQWDO 6HUYLFHV Â&#x2021; (OHFWULFDO 7UHQFKLQJ Â&#x2021; *UDGHU :RUN Â&#x2021; &DW :RUN ZD\ 'R]HU

Â&#x2021; 6HZHU DQG :DWHU

* : 7UHQFKLQJ +DXOLQJ /WG 6HUYLQJ WKH 2LOĂ&#x20AC; HOG LQ 6 ( 6DVN IRU \HDUV

/DPSPDQ 6DVNDWFKHZDQ &RQWDFW *RUGRQ :DXJK %XV

&HOO )D[

THE PROBLEM

THE SOLUTION

Chemical Barrel Containment Stand Wellhead Containment Unit

Hydraulic Pump Containment Unit

â&#x20AC;˘ Unit cost is less than clean-up cost from one packing failure

MISSION STATEMENT All Your Wellhead Containment Needs Including Hydraulic Pumping Units

â&#x20AC;&#x153;We Work In Harmony With Both The Oil Industry & Landowners To Protect Our Environmentâ&#x20AC;?

ENVIROTRAP SYSTEMS 1-306-483-7330 Sales Contact: CHEYENNE OILFIELD SERVICES 1-306-483-7924 E-mail: envirotrap@sasktel.net www.envirotrap.com

B28

PIPELINE NEWS March 2013

Welc

o m

e l r Cu

Estevan OTS bonspiel now mixed Estevan â&#x20AC;&#x201C; Thereâ&#x20AC;&#x2122;s a new development for the Estevan OilďŹ eld Technical Societyâ&#x20AC;&#x2122;s 54th annual bonspiel this year. It will no longer be exclusively oilmen. Oilwomen are now invited, too. The eligibility will remain the same. Entrants of either gender will still be required to derive at least 75 per cent of their income from the oilďŹ eld. This is in part due to the fact a substantial element of the event is the networking between participants. The event takes place Thursday, March 21 to Sunday, March 24. Registration is available online at estevanots. com, and the entry fee is $300 per rink. Asked about the addition of women to what had been an exclusively menâ&#x20AC;&#x2122;s domain, Estevan OilďŹ eld Technical Society president Brett Campbell said, â&#x20AC;&#x153;For the last few years thereâ&#x20AC;&#x2122;s been interest from ladies to enter.â&#x20AC;? Until now, it had been strictly oilmen in the event. The organizing committee put it to a vote, and opening it up to women carried seven to two.

Campbell noted that while there are separate golf events for men and women organized by the OTS, there has only been a menâ&#x20AC;&#x2122;s bonspiel, with no analogous event for women. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re getting with the times,â&#x20AC;? he said. The bonspiel has failed in recent years to ďŹ ll its 64 available slots, but Campbell doesnâ&#x20AC;&#x2122;t know if opening it up will make much diďŹ&#x20AC;erent with the numbers. Oxbowâ&#x20AC;&#x2122;s event, he noted, only had a few women. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;ll see, I guess. Time will tell. â&#x20AC;&#x153;To my knowledge, we were the only one that was only men,â&#x20AC;? he said of oilďŹ eld-related bonspiels in the area. Weyburn has had women for awhile now. As of Feb. 19, there were about 20 teams registered. â&#x20AC;&#x153;Thatâ&#x20AC;&#x2122;s typical. Usually the week before the start coming in,â&#x20AC;? he said. The organization has now conďŹ rmed its entertainment for the Friday night banquet on March 22. â&#x20AC;&#x153;The band is Crossroads,â&#x20AC;? Campbell said.

The days of a strictly male bonspiel is over for the Estevan OilÄŽeld Technical Society. This year will mark the ÄŽrst where the event is open to both genders. File photos

:HOFRPH WR WKH 276 %RQVSLHO *RRG /XFN

(VWHYDQ $XWKRUL]HG 'HDOHU

WK 6WUHHW (VWHYDQ 6N Â&#x2021;

:HOFRPH WR WKH (QHUJ\ FLW\ FXUOHUV

FINANCIAL 403B 9th Avenue Estevan, SK (306) 634.7979 Toll Free: (877) 770.0948 Fax: (306) 636.2267 info@spectraĂ&#x20AC;nancial.ca

Welcome

Ron Areshenkoff & Reynold Bert

OTS Curlers

Welcome Oilmen! Good Luck

:HOFRPH &XUOHUV 'RZQKROH 0RWRUV 6SHFLDOL]HG 0LOOV $EUDVLYH &XWWLQJ &RLO 7XELQJ 7RROV

2LOĂ&#x20AC;HOG ,QGXVWULDO &RPPHUFLDO

Sweeping you in the direction of creating, insuring & enhancing your personal wealth

$EUDVLYH 3HUIRUDWLQJ )LVKLQJ 6HUYLFHV 6QXEELQJ 7RROV 6DOHV 5HQWDOV

5HG 'HHU $% Â&#x2021; *UDQGH 3UDLULH $% )W 1HOVRQ %& Â&#x2021; (VWHYDQ 6.

Serving Southeast SK, Southwest Manitoba & North Dakota

since 1956 24 Hour Dispatch â&#x20AC;˘ Oxbow: 306-483-2848 Pipestone: 204-854-2231 â&#x20AC;˘ Waskada: 204-673-2284

PIPELINE NEWS March 2013

:HOFRPH WR (VWHYDQ *RRG /XFN &XUOHUV

Welcome to the OTS BONSPIEL

W G

BRENT GEDAK WELDING LTD.

126 Lamoro St. just off Hwy 39 W. of Estevan

6(59,&(6 /7'

+285 6(59,&( WK 6WUHHW (VWHYDQ 6. 2IĂ&#x20AC;FH )D[

B29

Have Fun Curling!

OfĂ&#x20AC;ce: (306) 634-5150

www.brentgedakwelding.com

Welcome to Estevan.

*22' /8&. &85/(56 *22' /8&. &85/(56

Have fun!

516 Nesbitt Drive (behind Power Dodge) Estevan â&#x20AC;˘ 634-2631

*RRG /XFN +DYH )XQ

1(: /2&$7,21 +Z\ 1 Â&#x2021; &DUQGXII 6.

Box 208 â&#x20AC;˘ Estevan, SK â&#x20AC;˘ S4A 2A3 461-8471

*RRG /XFN &XUOHUV %RXUTXLQ 5RDG (VWHYDQ 6. 3KRQH 7ROO IUHH ZZZ VRXWKHDVWFROOHJH RUJ

:HOFRPH &XUOHUV To us, your image is everything! 405 Kensignton Ave., Estevan, Sk. 634-9846 â&#x20AC;˘ www.crownad.ca E: promo@crownad,ca â&#x20AC;˘ E: signs@crownad.ca

3OHDVH FDOO 1RHO &RPVWRFN

WR GLVFXVV \RXU QH[W FUDQH EXLOG

&$7 7(.ÂˇV VPDUW &DWKRGLF 3URWHFWLRQ DQG 6HUYLFHV Â&#x2021; :(// &$6,1*6 Â&#x2021; 3,3(/,1(6 Â&#x2021; 0$,17(1$1&( ,PSUHVVHG 0DJ $QRGH 6\VWHPV

:(/&20( &85/(56 9LVLW XV RQOLQH ZZZ &$7 7(. FRP RU &DOO

:HOFRPH WR (VWHYDQ 3523$1(

*LUDUG %XON 6HUYLFH /WG (67(9$1 WK 6WUHHW Â&#x2021;

*RRG OXFN FXUOHUV

6HUYLQJ 6DVNDWFKHZDQ 0DQLWRED $OEHUWD 6LQFH

<RXU &RUURVLRQ 3URWHFWLRQ ([SHUWV

:H KDYH WKH VDIHW\ WUDLQLQJ \RX QHHG GXULQJ VSULQJ EUHDNXS

U\DQVD[RQ#VDVNWHO QHW

. C N I T R ANSPO an

Rhton, Saskatchew T Y D U O g u G Sto

S T O e h ot t e m Welco nspiel! Bo Office (306) 457-2785 Cell (306) 457-7692

Â&#x2021; &RPSOHWH 2LO :HOO 6HUYLFLQJ Â&#x2021; )UHH 6WDQGLQJ 7ULSOH 'RXEOH 6HUYLFH 5LJV Â&#x2021; &ODVV %RS Â&#x2021; &RPSOHWH 0RELOH (TXLSPHQW

:HOFRPH WR (VWHYDQ (VWHYDQ 6DVN

Welcome to the OTS Bonspiel G.W. Trenching & Hauling Ltd. Serving the OilĂ&#x20AC;eld in S.E. Sask. for 36 years!

Lampman, Saskatchewan Bus.: (306) 487-3178 â&#x20AC;˘ Cell: (306) 421-0566

Welcome to the Energy City! Estevan, Sask. 634-5555 Email: skylift@sasktel.net â&#x20AC;˘ Website: www.skyliftservices.com

B30

PIPELINE NEWS March 2013

Welc

o m

e Cu

SWEEP OILMEN!

Good Luck, Oilmen! JOHNSON

PLUMBING & HEATING LTD. Serving Estevan & Area since 1967 1037 - 5th Street â&#x20AC;˘ Estevan - Ph: 634-5172 â&#x20AC;˘ E-mail: jph@sasktel.net

www.samstrucking.ca

Have Fun Curlers! 3(5&< + '$9,6 /7'

&867206 %52.(56 )RUZDUGHUV &RQVXOWDQWV

NATIONAL OILWELL VARCO

(', 1HWZRUNLQJ

Cordell Janssen

&XVWRP &OHDUDQFH 6SHFLDOLVWV

www.plainsenvironmental.com

88 Devonian Street, Estevan, SK Ph:634-4041 (24hr) â&#x20AC;˘ Fax: 634-4040

:HOFRPH 276 &XUOHUV

District Manager Downhole

+($' 2)),&(

93 Panteluk Street, Kensington Avenue N, Estevan, SK

1RUWK 3RUWDO (VWHYDQ ZZZ SHUF\GDYLV FRP

PHONE: 306-634-8828 â&#x20AC;˘ FAX: 306-634-7747 cordell.janssen@nov.com â&#x20AC;˘ www.nov.com

*RRG /XFN

When your wellsite, lease or tankage requires containment call

Welcome to the Energy City! #6-461 King St. Estevan â&#x20AC;˘ 637-3460 www.petrobakken.com

Welcome Curlers

%R[ 2[ERZ 6. 6 & % 'LVSDWFK 2IĂ&#x20AC;FH )D[ ZZZ DEVROXWHORFDWLQJ FRP (PDLO LQIR#DEVROXWHORFDWLQJ FRP

Jayson King 306.736.9169 Stoughton, SK www.jkcontainments.com

Have Fun Curling!!

Good Luck Welcome Curlers!! Oilmen!

DISTRIBUTION INC. 315A Kensington Avenue Estevan, SK Phone: (306) 634-2835 Fax: (306) 634-2797 www.apexdistribution.com

Good Luck Curling Oilmen! Doreen Eagles, MLA Estevan Constituency OfĂ&#x20AC;ce

1108 4th Street, Estevan Phone: 1-306-634-7311 Toll Free: 1-866-284-7496

Corner of Kensington Ave. & King Street, Estevan â&#x20AC;˘ Phone: 634-3783

*RRG /XFN &XUOLQJ

+DYH )XQ &XUOHUV

6HH XV IRU DOO \RXU /DPDFRLGV DQG PHWDO FDEOH WDJV

(VWHYDQ 7URSK\ (QJUDYLQJ 3KRQH Â&#x2021; &HOO Â&#x2021; )D[ (PDLO HVWHYDQWURSK\#VDVNWHO QHW

PIPELINE NEWS March 2013

Best of Luck Curling, Oilmen!

Welcome Curlers! WOOD COUNTRY ESTEVAN MCLEAN TISDALE Ph: (306) 634-5111 â&#x20AC;˘ Fax: (306) 634-8441 407 Kensington Avenue, Estevan â&#x20AC;˘ www.wood-country.com

Have Fun Curlers! #6 Mehler Drive, KRJ Industrial Park 421-9576 or 421-2244

Welcome Oilmen! Good Luck Curling

62 DEVONIAN ST. ESTEVAN, SK. PH: 637-2180 FAX: 637-2181

(A Division of Total Energy Services Ltd.)

Midale ph: 306.458.2811 Fax: 306.458.2813 midale@totaloilĂ&#x20AC;eld.ca

KENDALL'S AUTO ELECTRIC LTD. 1020 6th Street, Estevan â&#x20AC;˘ 634-2312

*RRG /XFN &XUOHUV

306-634-2511 78 Devonian Street â&#x20AC;˘ Estevan, Saskatchewan

*RRG /XFN &XUOHUV

$OOLHG &DWKRGLF 6HUYLFHV / 3

#6, Hwy 39 E Estevan, SK Ph: 306-634-4493

:HOFRPH WR WKH (QHUJ\ &LW\ (QMR\ WKH ERQVSLHO

SWEEP! SWEEP! GOOD LUCK

HUTTâ&#x20AC;&#x2122;S TRUCKING LTD. Ph: (306) 487-2608 â&#x20AC;˘ E: huttholdings@sasktel.net

Â&#x2021; &DQDGD 8QLWHG 6WDWHV 2LOILHOG 7DQN 7UXFNV Â&#x2021; Â&#x2021; +RW 2LO 7UXFNV Â&#x2021; 3UHVVXUH 7UXFNV Â&#x2021; Â&#x2021; %REFDW *UDYHO 7UXFNV Â&#x2021; %DFNKRH Â&#x2021; Â&#x2021; )UDF :DWHU +HDWHU )UDF 7DQNV Â&#x2021; Â&#x2021; &RPER 9DF 8QLWV Â&#x2021; 1*/ 7UDLOHUV Â&#x2021; &HUWLILFDWH RI 5HFRJQLWLRQ ,53

*RRG OXFN FXUOLQJ

Carlyle Ph: 453-4401 Fax: 453-4402 carlyle@totaloilĂ&#x20AC;eld.ca

Welcome Oilmen!

3KRQH

B31

Phone: 306-443-2424 Alida,SK

The most revolutionary advanvement in linepipe since, well... the wheel Luke Guest 306-861-0509 www.flexpipesystems.com

Welcome Oilmen, have fun curling! 74 Devonian Street â&#x20AC;˘ 634-9966

Welcome Oilmen & Good Luck!

GESCAN Division of Sonepar Distribution Inc. Box 1518, 101 6th Street, Estevan, Saskatchewan S4A 2L7 Tel: (306) 634-8655 Fax: (306) 634-8028

:HOFRPH *ROIHUV :HOFRPH &XUOHUV

B32

PIPELINE NEWS March 2013

Welc

5RFN RQ FXUOHUV

o m

Welcome OTS Curlers!

l r Cu

MUPLOOHU #JPDLO FRP

7$1. 029,1* 6+$&. 029,1* (48,30(17 +$8/,1* *(1(5$/ 2,/),(/' +$8/,1* $,5 5,'( (48,30(17

Welcome Oilmen! Best of Luck!

:\WYLTL :[YLL[

HAVE FUN IN ESTEVAN OILMEN!

â&#x20AC;&#x153;We Dispatch for the Oilpatchâ&#x20AC;? Highway 39 East, Estevan Phone: 637-2060 Fax: 637-2065

Welcome OTS!

738 5th Street, Estevan Phone: 634-3522

*RRG /XFN 2LOPHQ

LOCALLY OWNED & OPERATED BOX 843, ESTEVAN, SK.

24 Hour Service - 634-8737

GOOD LUCK CURLERS! MAX REFRACTORY SERVICES & RENTALS

For your Industrial Coveralls... We

â&#x20AC;˘ Sell them â&#x20AC;˘ Clean them

â&#x20AC;˘ Pick Up & Delivery is FREE

See us for your custom laundry

204 Souris Avenue North, Estevan

634-4417

Best of Luck Curling!!

RIG MOVING Phone: 482-3244

Best of luck curling!

(VWHYDQ 6DVNDWRRQ 5HJLQD :LQQLSHJ %UDQGRQ

(VFDQD 6WUHHW (VWHYDQ 6N 3KRQH 7ROO )UHH

ROCK TALK!

Trevor 306.483.7777

HAVE FUN CURLING! * Formerly â&#x20AC;&#x153;Three Star Environmentalâ&#x20AC;?

306-453-4475

FAX: 306-453-4476 BOX 40, CARLYLE, SASK. S0C 0R0 www.evergreenenviro.ca

A S E E SERVICE L S â&#x20AC;&#x2122; D G I B P.O. Box 544 Stoughton, Sask. S0G 4T0

(306) 457-7033 (306) 457-7673

422 3RD. STREET, ESTEVAN RICHARD (RICK) FOSTER SUPERINTENDENT PH: (306)230â&#x20AC;˘7798 FAX: (306)634â&#x20AC;˘8212

E-MAIL: maxrefrac@sasktel.net WEB SITE: MAXREFRACTORY.CA

Hit the Button

with promotional products from

634-8384 â&#x20AC;˘ 1209 - 4th Street, Estevan

Welcome and good luck! 216 Souris Avenue Estevan

634-7209

PIPELINE NEWS March 2013

Welcome to the Energy City!

*RRG /XFN &XUOHUV

B33

Good luck curling!

Fun e v a H rling! Cu

/ & 7UXFNLQJ Â´6HUYLQJ WKH 2LO 3DWFK IRU <HDUVÂµ

634-6456 â&#x20AC;¢ 1-800-DAYS-INN (329-7466)

3KRQH RU +Z\ ( (VWHYDQ

1305 9th Street, Estevan â&#x20AC;¢ HWY 47 N â&#x20AC;¢ www.daysinn.ca

Have fun in Estevan, Oilmen!

*RRG /XFN 2LOPHQ

&HQWULIXJHV Â&#x2021; (] /RDG +\GUD /LIW 6\VWHPV 3RO\PHU 7DQNV Â&#x2021; 6KDOH %LQV

.HQVLQJWRQ $YH (VWHYDQ 6. 3K

WK $YH /HGXF $% 3K

%R[ )RUW 1HOVRQ %& 3K

ZZZ EED[WHUWUDQVSRUW FD

3KRQH

)URQWLHU 6WUHHW

(VWHYDQ 6.

:H RIIHU

)8// &216758&7,21

Have Fun Curling!! Day

Construction Ltd. Carnduff, SK.

Phone: (306) 482-3244

*RRG /XFN &XUOHUV

Have Fun!

)RU \RXU QH[W RXWGRRU HYHQW OHW XV FDWHU WR \RX

Call toda y fo price quo r te

VHUYLFHV

&DWHULQJ IRU DOO RFFDVVLRQV WR $1< /RFDWLRQ

:(/&20( 72 (67(9$1

Welcome to the Energy City, OTS!

www.annugas.com COMPRESSION

CONSULTING

LTD. Toll Free

1.866.ANNUGAS

Welcome Curlers!

1305 9th Street, Estevan â&#x20AC;¢ 634-6456

+855< +$5' +85 5< +$$$5' :<$77 758&.,1* &253 Â&#x2021; &UXGH 2LO 6DOWZDWHU 7UDQVIHUV Â&#x2021; +RW )UHVK :DWHU Â&#x2021; $FFHVV 7R )UHVK :DWHU $YDLODEOH Â&#x2021; )UHVKZDWHU +DXOLQJ Â&#x2021; 6HUYLFH :RUN

Mike Brasseur Ph: 634-4554 â&#x20AC;¢ Cell: 461-8111 â&#x20AC;¢ www.bigcountryenergy.com

Contact Dale at 861-3635

+DYH )XQ &XUOLQJ *RRG /XFN &XUOHUV 7(55< '2''6 +56 2LOPHQ &HOO 3RQJR +ROGLQJV /WG RU 31/2 miles South of Estevan on Hwy 47 (35 of 1 of 8, West of the 2nd)

Good Luck & Have Fun Oilmen!

0 ( 7 2,/),(/' &2167 /7' Â´$OO <RXU &RQVWUXFWLRQ DQG 0DLQWHQDQFH 1HHGVÂµ 63(&,$/,=,1* ,1 (1*,1(6 3803 81,76 81,7 ,163(&7,216 3,3(),77,1* 75($7(56 $1' 35(6685( 7,&.(7 :(/',1*

FLOAT EQUIPMENT-REAMERS

(VWHYDQ 6N &HOO

Estevan, SK â&#x20AC;¢ 306-634-6768

PIPELINE NEWS March 2013

Welc

o m

:HOFRPH 2LOPHQ +DYH )XQ &XUOLQJ

e l r Cu

2PUN :[YLL[ , ,Z[L]HU :2 7OVUL! -H_!

Good Luck!

:HOFRPH 276 &XUOHUV +DYH IXQ

+HDG 2IĂ&#x20AC; FH (VWHYDQ 6. 7HO )D[ 5D\ )UHKOLFN 3UHVLGHQW &HOO

HAVE FUN CURLING

Welcome To Estevan!! Marty Hanson Cell: (306) 421-5016

Arcola, SK â&#x20AC;˘ 455-2705

Estevan!

Good Luck Curling Oilmen!

ZZZ HVWHYDQPRWRUV FRP

$ 'LYLVLRQ RI -- 7UXFNLQJ /WG

72// )5(( /' $//$1

&UHHOPDQ 6DVN

*RRG /XFN &XUOLQJ +DYH )XQ

WK 6WUHHW (VWHYDQ

*CXG (WP 1KNOGP

RONâ&#x20AC;&#x2122;S

The Work Wear Store Ltd.

634-8232

112 11 2 2ND 2ND ST. ST WEYBURN

842-3006

202 20 2 MAIN MAIN CARLYLE

453-6167

ANNER BIT SERVICE

Welcome curlers, have a great time!

Well Servicing E bbennett@suncountrywellservicing.ca 421-3904 F 634-1200 â&#x20AC;˘ Estevan, SK

/LNH XV RQ

Good luck curling

1210 10 4TH 4TH ST. ST ESTEVAN

Estevan Office: Phone: (306) 634-2681 â&#x20AC;˘ Fax: (306) 636-7227

$ 7 1DND

o t e m o Welc Best of Luck!

&RUQHU RI WK 6RXULV

www.eagleoilĂ&#x20AC;eldservices.com

Estevan, Sask

dartservices@sasktel.net

'2'*( Â&#x2021; &+5<6/(5 Â&#x2021; -((3

+DYH IXQ FXUOLQJ

601 - 5th St., Estevan, Sk.

Cell: (306) 421-1986

(VWHYDQ 0RWRUV /WG

Â´6HUYLQJ :HVWHUQ &DQDGD :LWK +RXU 'ULOOLQJ 0XG 6HUYLFHÂľ

Davin Emmel

*RRG /XFN &XUOHUV

3UDLULH 0XG 6HUYLFH

5 STREET Autobody 634-7101 â&#x20AC;˘ Screw Pilings Sales and Installs â&#x20AC;˘ General OilĂ&#x20AC;eld Hauling â&#x20AC;˘ Skid Steer Service â&#x20AC;˘ Concrete pumping

&KU\VOHU Â&#x2021; 'RGJH 7UXFNV Â&#x2021; -HHS

B34

CHAD FROESE

CELL: 306-421-3726 RES: 306-634-7538 OFFICE: 306-388-2941

86 - 7th Avenue South Yorkton, SK Ph: 306.783.1999 Fax: 306.783.1645 hdofyorkton@sasktel.net See our website for more details www.harleydavidsonofyorkton.com

Good Luck Curlers! â&#x20AC;&#x153;Your Home of After Sales Serviceâ&#x20AC;?

Senchuk Ford Sales Ltd. 118 Souris Ave. N., Estevan 634-3696 Toll Free: 1-877-880-9094 (sales) 1-877-883-2576 (service) â&#x20AC;˘ E-mail: sales@senchuk.com

www.senchukford.ca

PIPELINE NEWS March 2013

B35

Dirt work There's a lot of dirt work going on in preparaƟon for PTI's new camp northeast of Estevan. Photo by Brian Zinchuk

NEW 2012 F-350 CC LARIAT DIESEL 4X4 MSRP ........................................ $78,379 BLOWOUT PRICE........................... $59,980 RECYCLE YOUR RIDE .......................$3,000

21 NEW SUPERDUTIES TO CHOOSE FROM

56,980

2013 MUSTANG BOSS G.T.

2010 CHEV CAMARO RS

1ST COME FIRST SERVE!

20KM

JUST ARRIVED!

2007 EDGE SEL AWD 119KM, LEATHER, MOON

2005 SPORT TRAC XLT 4X4

$177 b/w

$17,900

2008 ACADIA SLT AWD 115KM, LEATHER, MOON, DVD

$186 b/w

$21,900

2010 DODGE NITRO SXT 4X4 47KM, LEATHER, MOON

$165 b/w

$21,900

2008 PONTIAC MONTANA SV6 132KM, DVD

$77 b/w

$8,900

2007 SILVERADO CC LS 4X4 77KM

$158 b/w

$15,900

2011 F-150 CC XTR 4X4 72KM, EXT WARRANTY AND MAINTENANCE PACKAGE

$13,900

2008 F-350 CC HARLEY 4X4 LEATHER, DIESEL

$29,900

2012 EXPEDITION MAX LIMITED 32KM, LEATHER, MOON, NAV

$348 b/w

$48,900

2006 BUICK TERRAZA CXL 122KM, LEATHER, DVD

$90 b/w

$8,900

2009 TOYOTA TUNDRA LIMITED 4X4 82KM, LEATHER, V-8, NAV, MOON, 5.7 V-8, TOPPER

$284 b/w

$31,900

2009 F-150 SC XLT 4X4

$195 b/w

$25,900

$253 b/w

$153 b/w

93KM

$17,900

2007 PONTIAC G-6 HARD TOP CONVERTIBLE G.T. $138 b/w

65KM, LEATHER

$13,900

2007 EDGE SEL AWD

$15,900

2010 F-150 CC LARIAT 4X4 $229 b/w

58KM, LEATHER

$28,900

2006 FIVE HUNDRED LIMITED AWD LEATHER, MOON, 129,000KM

$129 b/w

$12,900

2004 F-150 SC LARIAT 4X4 LEATHER, 117,000KM

JUST ARRIVED!

105KM, LEATHER, MOON

$158 b/w

$20,900

2008 ESCAPE LIMITED 4X4 121KM, LEATHER, MOON

132KM, LEATHER, MOON, TV

$15,900

$12,900

$18,900

$292 b/w

$38,900

$20,900

2007 SATURN AURA XE

$9,900

2010 F-150 CC PLATINUM 4X4 28KM, LEATHER, MOON, NAV

$28,900

2007 EXPEDITION LIMITED MAX 4X4 LEATHER, MOON, DVD, NAV

$235 b/w

$23,900

2009 ESCAPE XLT

$292 b/w

$38,900

2010 F-150 CC LARIAT 4X4 58KM, LEATHER

$229 b/w

$28,900

2008 ACADIA SLT AWD 121KM, LEATHER, MOON, DVD

$186 b/w

$21,900

2004 EXPLORER XLT 4X4 $119 b/w

98KM

$13,900

2008 AVALANCHE LS 4X4 87KM

$21,900

2011 SILVERADO CC LTZ 4X4 26KM, LEATHER

117KM

$33,900

$9,900

2008 PONTIAC TORRENT GXP AWD 74KM, LEATHER, MOON

$136 b/w

$15,900

2007 SILVERADO CC LT 4X4

$255 b/w

2010 F-150 CC XTR 4X4

$99 b/w

MOON

$229 b/w

$186 b/w

2009 GMC SIERRA CC 4X4 83KM

2010 F-150 CC LARIAT 4X4 57KM, LEATHER

$136 b/w

2005 LINCOLN AVIATOR 4X4

$161 b/w

2010 F-150 CC PLATINUM 4X4 33KM, LEATHER, NAV, MOON

$20,900

$178 b/w

2008 RAM 1500 CC TRX 4X4 75KM, 5.7L HEMI, TOPPER

$178 b/w

2010 EDGE SEL AWD $158 b/w

128KM, REVERSE SENSING

2008 LINCOLN MKZ AWD 37KM, LEATHER, MOON

$14,900

2002 GMC SC SIERRA SLE 2500 4X4

$25,900

2011 F-250 CC 4X4 25KM

$6,900

2005 F-150 SC FLARESIDE FX4 4X4

$217 b/w

$28,900

$6,900

$187 b/w

$18,900

2005 F-350 CC LARIAT 4X4 LEATHER, DIESEL

$16,900

2007 EXPLORER LIMITED 4X4 102KM, LEATHER, V-8, DVD

$158 b/w

$15,900

2006 LINCOLN NAVIGATOR 4X4 LEATHER, MOON

$138 b/w

$13,900

2009 SILVERADO SC LT 2500 H.D.

$148 b/w

Z-71

$195 b/w

55KM

2007 EDGE SEL AWD 107KM, LEATHER, MOON, COMMAND START

$186 b/w

106KM

$21,900

2011 F-150 CC HARLEY 4X4 49KM, LEATHER, MOON, NAV

$307 b/w

$40,900

2011 F-250 CC XLT 4X4 23KM, 6.7L DIESEL

$314 b/w

$41,900

B36

PIPELINE NEWS March 2013

Versatile and Reliable Articulated Trucks Q

Efﬁcient tier 4 interim engine provides up to an 8% reduction in fuel consumption

New operator’s cab provides better visibility and ergonomics

Komatsu CARE* provides complimentary Tier 4 maintenance, including KDPF exchange ﬁlters

Komatsu Traction Control System (K-TCS) automatically increases performance in soft ground conditions

Dozers Q

Hydrostatic Transmission (HST) for superb accuracy and smooth control

Excellent blade visibility that minimizes operator guesswork and reduces cycle times

All daily maintenance points centralized in one location for convenient access

Excavators Q

Increased working range for more digging reach

Powerful Tier 4 Interim engine improves operational efﬁciency

Enhance work modes designed to match your work environment

We offer only world-renowned brand names that meet your standards of reliability and productivity. With various locations to serve you across Canada, SMS Equipment is your local equipment and solutions provider.

Western Region: 1 * Contact your Local SMS Equipment branch for details.

866 458-0101 Eastern Region: 1 800 881-9828 smsequip.com

PIPELINE NEWS

SECTION C March 2013

Vertical integration is key to BGW’s growth plans By Brian Zinchuk Estevan – With several new capabilities and two new buildings, Brent Gedak Welding (BGW ) now has the capabilities to offer complete skid packages for its clients. Starting as a welding outfit, they can now do insulation, electrical and painting. Pressure vessel manufacturing is in the works, too. The company has grown substantially from its one-truck origin in 2007. “We’re a fabrication shop. Our main business is fabricating skid packages,” said Brent Gedak, who owns the business with his wife Janelle. Those packages are made for processes like water disposal, water flood, header packages, truck unloading and vessels, to name a few. They’ve grown to 26 employees including management. “I want to be at 40, but we’re not there yet,” Gedak said. “In the last couple weeks, we brought in four – three welders and a journeyman electrical manager.

Jason Carlberg is a B-pressure welder who also specializes in stainless steel work. The company has added two new buildings. One is split in half, with the north side serving as an insulators shop. The company now insulates whole batteries in addition to their packages. “The other half is paint. We have a fully certiﬁed, legal paint shop,” he said.

Brent Gedak Welding can now build all the elements of a skid package, from the I-beams to the electrical work.

Each side is 40 by 40 feet. The new building is 184 by 80 feet, which includes a 40 by 80 foot oﬃce area. The shop portion is going to be for skid fabrication. “We fabricate all our skids, and assemble them here. That will leave room in the

original shop for high pressure piping and vessels.” Indeed, the two new buildings are part

of a larger strategy of vertical integration. The company is just getting into building pressure vessels to be used in applications like free water knockouts, treaters and separators. Pressure vessels are a brand new line. Tyler Adams handles in-house design on the vessel side. “We don’t just want to build vessels. We want to build vessels and a package around them. Basically, if you can put it on a skid, we can build it,” Gedak said. They are not getting into low pressure tanks. He noted, “I won’t say never. We’ll do anything, but it’s not my goal.” The company has

just added a separate electrical division. John Brady has hired on as the electrical manager. “We will do field electrical work as well as wiring all our skid buildings,” Gedak said. There won’t be enough work at first to keep the electrical staff working on their skids full-time, so the electricians will do outside work away from the shop as required. “We always had to hire subcontractors. We’re now a one-stop shop,” he said. Electrical contractors were previously chosen by the client. “Now we want to do everything, from the design to electrical.” ɸ Page C2

PIPELINE NEWS March 2013

Eddie Jensen, a ÄŽrst-year apprenĆ&#x;ce welder, works on a triplex pump skid package.

Complete skid packages

Your Non-Destructive Testing Specialists â&#x20AC;˘ Radiographic â&#x20AC;˘ Ultrasonic â&#x20AC;˘ Magnetic Particle â&#x20AC;˘ Liquid Penetrant â&#x20AC;˘ Positive Material IdentiďŹ cation â&#x20AC;˘ Hardness Testing â&#x20AC;˘ Digital Radiography

AM Inspectionâ&#x20AC;&#x2122;s services are available throughout Western Canada.

â&#x20AC;˘ COR CertiďŹ ed â&#x20AC;˘ IRP16 CertiďŹ ed â&#x20AC;˘ Mainline Production Units â&#x20AC;˘ Internal Gamma Crawlers â&#x20AC;˘ C.G.S.B. CertiďŹ cation

AM Inspection Ltd. places a high priority on safety and is committed to creating a safe work environment for our employees, contractors, clients, and the communities we conduct business in.

501 Railway Avenue N Cabri, Saskatchewan, S0N0J0, 1-800-667-6747 AM.INSPECTION@SASKTEL.NET

Éş Page C1 The biggest goal is to do MCC buildings, the electrical buildings that house things like breakers. He noted, â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;ve built tons of MCC buildings, but have had to pass on the electrical. We want to make it a complete package. Every package we work on includes electrical.â&#x20AC;? Usually a week is scheduled as an â&#x20AC;&#x153;electrical windowâ&#x20AC;? for each package that goes through. Gedak said the contracts for their work come from engineering ďŹ rms, from Calgary, but most of the work is local. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re breaking into northern Alberta and B.C. We do a lot of work in Manitoba as well. We just sent two big packages to B.C. They were fresh water packages, moving water from pond to pond for fracking. â&#x20AC;&#x153;Lately, of our last six big packages, ďŹ ve have gone to northern Alberta or B.C. It was just coincidence,â&#x20AC;? Gedak said. A lot of their product ends up around Stoughton. That product is not cookie-cutter, however. â&#x20AC;&#x153;We build everything custom to what the customer wants. We fabricate to our clientsâ&#x20AC;&#x2122; needs,â&#x20AC;? he said. â&#x20AC;&#x153;We handle more volume now. We used to be up to three skids at one time. Now we can handle up to seven.â&#x20AC;? â&#x20AC;&#x153;There will be future expansion,â&#x20AC;? he said. With ďŹ ve acres on the site on the west side of Estevan, the new construction has been planned so such that additions can be made. That wasnâ&#x20AC;&#x2122;t the case with their initial shop. â&#x20AC;&#x153;We built that place and never dreamed of expanding it,â&#x20AC;? he said. Itâ&#x20AC;&#x2122;s been quite a substantial growth curve for a company that started in 2007 in a farm Quonset with one welding truck. Gedak used to be a pipeline welder. â&#x20AC;&#x153;We still carry ďŹ ve of those mobile units,â&#x20AC;? he said. While the company bears his name, Gedak stressed the importance the staďŹ&#x20AC; in the companyâ&#x20AC;&#x2122;s growth and success. They are the ones going out in the ďŹ eld now when the late calls come in. Janelle Gedak looks after accounting and is the oďŹ&#x192;ce manager. Sheâ&#x20AC;&#x2122;s currently on maternity leave with twins, but still works from home. â&#x20AC;&#x153;Sheâ&#x20AC;&#x2122;s a big part of our business,â&#x20AC;? Brent said. â&#x20AC;&#x153;Our safety was a huge accomplishment,â&#x20AC;? he said. â&#x20AC;&#x153;We have our COR. We got that two years ago. With our staďŹ&#x20AC;, it was easy. Our safety co-ordinator, Joanne Scholte, did a phenomenal job keeping it organized. â&#x20AC;&#x153;We had to create procedures from scratch. Audits have been going smoothly. Jarred Dumaine is the companyâ&#x20AC;&#x2122;s general manager and project co-ordinator. Jarett Mosley handles quality control. As for whatâ&#x20AC;&#x2122;s next, Gedak said, â&#x20AC;&#x153;It took ďŹ ve years to get to electrical. I donâ&#x20AC;&#x2122;t know whatâ&#x20AC;&#x2122;s going to happen ďŹ ve years from now. "

Gilliss Power Tongs handles casing sizes from 2 3/8â&#x20AC;? up to 20â&#x20AC;? 6HUYLQJ WKH VRXWKHDVW FRUQHU RI 6DVNDWFKHZDQ VLQFH

FLOAT EQUIPMENT-REAMERS Manager: Dylan Gilliss 421-8158

Sales & Safety: Ryan Wallington 421-7011

Sales: Logan Gilliss 421-8481

Estevan, SK www.gillisspowertongs.com

Tel: (306) 634-6768 Fax: (306) 634-6738

PIPELINE NEWS March 2013

Sask Oil and Gas Show booths sold out long ago The Saskatchewan Oil and Gas Show in Weyburn sold out a long Ć&#x;me ago, and its indoor booths could sell out again if there were room available. The event will take place June 5-6. This is from the 2011 ediĆ&#x;on of the show. File photos

Â&#x201E; By Brian Zinchuk Weyburn â&#x20AC;&#x201C; If you let any grass grow under your feet in getting a booth at the Saskatchewan Oil and Gas Show, you were out of luck a long time ago. Nearly all the booths were snapped last fall up by returning exhibitors. â&#x20AC;&#x153;We had 90 per cent of exhibitors by September 30. We gave about ten per cent to the wait list, about 33 new exhibitors,â&#x20AC;? said Tanya Hulbert, administrator for the show. The event will take place June 5 and 6, and will be preceded by a golf tournament for exhibitors only on June 4. The show is adopting a new system for registering for meal tickets. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re trying an online system with a database. Itâ&#x20AC;&#x2122;s easier than phone. Online registration really helps,â&#x20AC;? she said. Popular events like the steak and lobster supper tend to sell out. Online registration can be found at oilshow.ca. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s a good show amongst people using their products and services,â&#x20AC;? Hulbert said. â&#x20AC;&#x153;The show is attended by people in the industry; Itâ&#x20AC;&#x2122;s a pretty big industry event.â&#x20AC;? The Saskatchewan Oil and Gas Show, also known as the Weyburn Oil Show, is held every second year. There are 187 indoor booths and 135 outdoor booths, but many exhibitors rent multiple booths and merge them into larger exhibits. â&#x20AC;&#x153;We capped the wait list at 160. We could sell another two rinks if I had two rinks to sell,â&#x20AC;? Hulbert said. In 2011, approximately 5,000 people attended the event over two days. â&#x20AC;&#x153;We expect the premier and minister of energy and resources to attend. Theyâ&#x20AC;&#x2122;ve been invited to speak,â&#x20AC;? Hulbert said, noting that sometimes things come up that preclude politicianâ&#x20AC;&#x2122;s attendance. Ron Carson of Carson Energy Services is chair of the show, with Darcy Cretin of Cenovus as cochair. The organization is still working on sponsorships. One example is funding courtesy drivers for the golf tournament.

NEW - DRILL GENERATORS

24 hours a day â&#x20AC;˘ 8 kw - 350 kw â&#x20AC;˘ Pumpjacks â&#x20AC;˘ Well Site Shacks â&#x20AC;˘ Service Rigs â&#x20AC;˘ Construction Sites â&#x20AC;˘ Drilling Rigs

- OilĂ&#x20AC;eld Maintenance - Service Crews - Pressure Welding - Pipeline Construction - Battery Construction - Rent or Sell New & Used Equipment Randy: 634-5405 - Cellular 421-1293 Darcy: 634-5257 - Cellular 421-1425 â&#x20AC;˘ Fax: 634-4575

LOCALLY OWNED & OPERATED BOX 843, ESTEVAN, SK.

24 Hour Service - 634-8737

69(,1 %5<(,'( &216758&7,21 /WG )RU H[SHULHQFHG 2SHUDWRUV RU

Phone Toby: 577-1907 Â&#x2021; 6QRZ 5HPRYDO Â&#x2021; (DUWK 0RYLQJ Â&#x2021; *UDYHO +DXOLQJ Â&#x2021; &RQWDPLQDWH 6RLO +DXOLQJ Â&#x2021; 6XSSO\ DQG ,QVWDOO 7H[DV *DWHV &XOYHUWV

Â&#x2021; 5RDG &RQVWUXFWLRQ Â&#x2021; 2LOILHOG 3LSHOLQH &RQVWUXFWLRQ Â&#x2021; *UDGHUV Â&#x2021; 7UDFNKRHV Â&#x2021; %DFNKRHV

Â&#x2021; 0RWRU 6FUDSHUV Â&#x2021; *UDYHO 7UXFNV Â&#x2021; 5RFN 7UXFNV Â&#x2021; 'R]HU 5LSSHU &UDZOHUV Â&#x2021; /RZEHGV DQG PRUH

$ )XOO 'D\V :RUN )RU $ )XOO 'D\V 3D\ 2YHU <HDUV ([SHULHQFH

PIPELINE NEWS March 2013

Crescent Point turns to rail as a contingency plan for pipeline issues Crescent Pointâ&#x20AC;&#x2122;s newly relocated crude-by-rail facility west of Stoughton now has a capacity of 40,000 barrels per day. Itâ&#x20AC;&#x2122;s located on the Stewart Southern Rail shortline, which feeds into Canadian PaciÄŽcâ&#x20AC;&#x2122;s network. With southeast Saskatchewan producĆ&#x;on in excess of 50,000 bpd, the company can now ship the vast majority of its local producĆ&#x;on by rail if it so chooses.

Â&#x201E; By Brian Zinchuk Calgary, Stoughton â&#x20AC;&#x201C; In December, Crescent Point Energy got its newly expanded crude-by-rail facility at Stoughton up and running. The new facility is a couple of miles west of its original facility, located just west of the town of Stoughton. At the new location, they have their own sidings as opposed to loading on the track. But more importantly, there is a great deal more capacity. â&#x20AC;&#x153;That (move) was to increase capacity. Weâ&#x20AC;&#x2122;ve got more capacity at the new location so we can handle more cars and move more cars,â&#x20AC;? said Trent Stangl, vice-president of marketing and investor relations with Crescent Point on Jan. 28. In early 2012, Crescent Pointâ&#x20AC;&#x2122;s Stoughton rail

loading facility had an 8,000 barrel per day capacity. That was later increased to 16,000 bpd last summer. They now have the ability to load up to 40,000 bpd, as of early December. The company now produces well over 50,000 bpd in southeast Saskatchewan now, up from around 47,000 bpd a year ago. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re trucking it right now,â&#x20AC;? said Stangl. The company has not constructed a pipeline to its main battery in the region at ViewďŹ eld, just a few miles south of the rail facility. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s something weâ&#x20AC;&#x2122;ve talked about, yeah. We donâ&#x20AC;&#x2122;t have ďŹ rm plans. It would be nice to get those trucks oďŹ&#x20AC; the road, and streamline the operation,â&#x20AC;? he said. Part of the appeal of rail is how ďŹ&#x201A;exible it is, he said. â&#x20AC;&#x153;You can get a decent amount of capacity

STOP IN TO SEE ONE OF OUR

NEW

2013 MODELS

WK $YHQXH 6RXWK <25.721 6. SK ID[ KGRI\RUNWRQ#VDVNWHO QHW VKRS RQOLQH DW ZZZ KDUOH\GDYLGVRQRI\RUNWRQ FRP

relatively cheap in southern Saskatchewan because of the rail infrastructure in place due to the grain trade. Once you start adding pipelines and so on, it certainly increases your commitment to rail.â&#x20AC;? It wouldnâ&#x20AC;&#x2122;t be a long pipe, but a â&#x20AC;&#x153;decent capital expenditure,â&#x20AC;? Stangl noted when asked if, and when, the company might connect the two facilities via pipeline. â&#x20AC;&#x153;Before we do that, weâ&#x20AC;&#x2122;ll make sure we understand the long-term potential is for rail and the eďŹ&#x192;ciency gains for having the pipe. For a spring breakup view, it certainly would be nice to have those trucks oďŹ&#x20AC; the road. Alberta is blessed with a lot of pipeline and storage infrastructure. â&#x20AC;&#x153;If you have issues on, say, Enbridge mainline, youâ&#x20AC;&#x2122;ve got Keystone, youâ&#x20AC;&#x2122;ve got Express, youâ&#x20AC;&#x2122;ve got TransMountain. Youâ&#x20AC;&#x2122;ve got lots of storage at Hardisty. That gives you ďŹ&#x201A;exibility with pipeline issues. In southeast Saskatchewan, we have the Enbridge mainline. Thatâ&#x20AC;&#x2122;s really our way out of town. If Enbridge mainline has issues, and you go back to 2010, when they had the leak into the Kalamazoo River, it really highlighted our dependence on that one pipeline system. What we wanted to do with the rail was to have a contingency plan in place whereby if there are pipeline issues, we have another way of getting our crude to market.â&#x20AC;? â&#x20AC;&#x153;Thatâ&#x20AC;&#x2122;s really where the rail came about. By the time we got up and running, the PADD II market in the U.S. Midwest was oversupplied and Canadian diďŹ&#x20AC;erentials were quite wide. The rail then allowed us to get to markets other than PADD II, which really helped us on netbacks.â&#x20AC;? É¸ Page C5

MUPLOOHU #JPDLO FRP

PIPELINE NEWS March 2013 ɺ Page C4 Asked about the impact of the widely publicized differentials, Stangl said, “People right now are really getting focused on differentials. Light oil differentials are really doing not too badly at all, relatively speaking, versus the heavies that are really getting beat up quite a bit. A large part of that is because a lot of the incremental production from Canada coming on is heavy oil. You’ve got Imperial’s Kearl project coming on in the next little bit, and that’s all heavy oil. Plus you’ve got BP’s Whiting refinery down for a conversion so they can run more heavy in the future. In the short term, we’ve got less demand for heavies, and increased supply. That’s really hurting the heavy differential.” “Saskatchewan, because it’s more of a light product, is not seeing as much change in differential. If you look historically, going back ten years, the differential for southeast Saskatchewan light sour blend crude was about five bucks a barrel off WTI. When you look at where we are today, in January, we’re at around minus-seven, minus-eight. It’s not that far off the long term historical. February looks a little bit wider, around ten bucks a barrel. But when you’re taking about $95 a barrel oil prices for WTI, having a three buck difference isn’t the end of the world. “The heavies, they went from trading at minus-$15 to minus-$20 to now they’re trading at minus-$35 to minus-$40.” For the most part, Crescent Point’s Saskatchewan production is light crude, but in the southwest they have some medium crude in their Shaunavon play. “That’s traded at a premium to heavies, but it’s impacted by these wider differentials,” he said. Medium differential, such as a Weyburn-type crude, would see a minus-$13 to minus-$16 differential per barrel, he said. Does shipping by rail close this differential much?

“What we do is reduce the volatility of the differential. Two things: when we get into the markets we’re serving by rail, we find that those markets are less volatile than the PADD II market, so we’re reducing the volatility on those differentials. Secondly, we’re able to access some refiners that are more interested in locking in mid-term differentials. Now, if you look Crescent Point historically, we’ve been a very active hedger of WTI. We lock in our WTI prices going out three-and-a-half years to provide some stability of our prices. “Now we can extend that hedging activity to the differential as well, so we’ve got about 10,000 barrels a day of differentials locked in due to our rail markets. That provides us with a lot more stability in our prices. Stangl said they are accessing coastal markets to the east, south and west, but wouldn’t elaborate on

where. They are getting a better return by shipping on rail, he said. How much of their rail capacity is used varies month to month, but they haven’t been using all of it. “We’re not shipping of our medium gravity crude by rail right now,” he said, but added it’s something they’ve talked about, however. Asked if there will be more of a trend to crudeby-rail in their other locations, he said, “I think so. We’d like to see more capacity in each one of our core areas, to give us that ability to access markets outside of the pipeline aﬀected markets, and to reduce overall volatility in our prices. “This is really contingency planning for us. It gives us another way of getting our oil to market outside of just having one pipeline,” he concluded.

RENTALS

TRUCKING

• 400 BBL Tanks, Lined, Sloped, Steam Coiled, Sumped & Sour Serviced, • Enviro-Vac Units • Rig Mats • Invert Systems • Surface Sump Tanks • Caterpillar Loaders • Vapor Tight Equipment

• Pickers • Bed Trucks • Winch Tractors • Texas Beds

MIDALE Ph: 306•458•2811 Fax: 306•458•2813 midale@totaloilÀeld.ca

• Portable Flaring Equipment • Flow Back Separators • Pre-Mix Systems • Surface Tanks • Acid Tanks • Mixing Bins • Shale Bins • Flare Tanks

CARLYLE Ph: 306•453•4401 Fax: 306•453•4402 carlyle@totaloilÀeld.ca

(A Division of Total Energy Services Ltd.)

DĂŶƵĨĂĐƚƵƌĞƌ ŽĨ ůĞĐƚƌŝĐĂů ^ƵďŵĞƌƐŝďůĞ WƵŵƉŝŶŐ ^ǇƐƚĞŵƐ ; ^WͿ͕ ,ŽƌŝǌŽŶƚĂů WƵŵƉŝŶŐ ^ǇƐƚĞŵ ;,W^Ϳ ĂŶĚ sĂƌŝĂďůĞ &ƌĞƋƵĞŶĐǇ 'ĞŶĞƌĂƚŽƌƐ ;s&'Ϳ

dŚĞ ŽŶůǇ ^W WƵŵƉ dĞƐƚ &ĂĐŝůŝƚǇ ŝŶ ^ĂƐŬĂƚĐŚĞǁĂŶ tŝƚŚ Ă ƌĞĐĞŶƚ ϮϰϬϬ ƐƋ͘ Ĩƚ͘ ĞǆƉĂŶƐŝŽŶ ŽĨ ŽƵƌ ƐƚĞǀĂŶ ^ĞƌǀŝĐĞ ĨĂĐŝůŝƚǇ ǁĞ ŚĂǀĞ ĞǆƉĂŶĚĞĚ ƐĞƌǀŝĐĞƐ ĨŽƌ ŽƵƌ ƐƵďŵĞƌƐŝďůĞ ƉƌŽĚƵĐƚ ůŝŶĞ ǁŝƚŚ ƚŚĞ ĨŽůůŽǁŝŶŐ͗ i

^W ĂŶĚ ,W^ ƉƵŵƉ ƚĞƐƚŝŶŐ

^W ƉƵůůƐ͕ ŝŶƐƚĂůůƐ ĂŶĚ ƚƌŽƵďůĞƐŚŽŽƚŝŶŐ ĨŝĞůĚ ƐĞƌǀŝĐĞ

ĂďůĞ ƐƉŽŽůŝŶŐ͕ ƚĞƐƚŝŶŐ ĂŶĚ ƌĞƉĂŝƌƐ

WŽƌƚĂďůĞ ĐĂďůĞ ƐƉŽŽůŝŶŐ ĂŶĚ ďĂŶĚŝŶŐ ƐĞƌǀŝĐĞ

,W^ ŵĂŝŶƚĞŶĂŶĐĞ͕ ƚƌŽƵďůĞƐŚŽŽƚŝŶŐ ĂŶĚ ůĂƐĞƌ ĂůŝŐŶŵĞŶƚ ĨŝĞůĚ ƐĞƌǀŝĐĞ

EĞǁ s& ͕ ĐĂďůĞ ĂŶĚ ĚŽǁŶŚŽůĞ ĞƋƵŝƉŵĞŶƚ ŝŶǀĞŶƚŽƌǇ

s& ƐĂůĞƐ ĂŶĚ ƐĞƌǀŝĐĞ

WŽƐŝƚŝŽŶƐ ĂƌĞ ĂǀĂŝůĂďůĞ ĨŽƌ ^ƉŽŽů dƌƵĐŬ KƉĞƌĂƚŽƌƐ ĂŶĚ ^ĞƌǀŝĐĞ dĞĐŚŶŝĐŝĂŶƐ Ăƚ ŽƵƌ ƐƚĞǀĂŶ͕ ^< ĂŶĚ ĚŵŽŶƚŽŶ͕ ĨĂĐŝůŝƚŝĞƐ͘ dŽ ĂƉƉůǇ͕ ƐĞŶĚ ǇŽƵƌ ƌĞƐƵŵĞ ƚŽ ĐĂƌĞĞƌƐΛĐĂŝͲĞƐƉ͘ĐŽŵ͘

,QQRYDWLYH 6ROXWLRQV IRU 0RYLQJ )OXLGV WR 3RZHU WKH :RUOG

ǁǁǁ͘ĐĂŝͲĞƐƉ͘ĐŽŵ

&Žƌ ^ĂůĞƐ ĐĂůů ŚƌŝƐ Ăƚ ϯϬϲ͘ϰϲϭ͘ϲϲϰϰ &Žƌ ^ĞƌǀŝĐĞ ĐĂůů :ĞƌĞŵǇ Ăƚ ϯϬϲ͘ϰϮϭ͘Ϯϯϲϰ &Žƌ Ăůů ŽƚŚĞƌ ŝŶƋƵŝƌŝĞƐ ĐĂůů ϯϬϲ͘ϲϯϰ͘ϲϮϴϭ

PIPELINE NEWS March 2013

Oxbow machine shop works on Boundary Dam project

Journeyman machinist Chad Peet works on Irwinâ&#x20AC;&#x2122;s Machining and Weldingâ&#x20AC;&#x2122;s newest lathe. It is substanĆ&#x;ally larger than the other two, and has a 45-inch swing and 120 inch centres. Itâ&#x20AC;&#x2122;s one of the largest lathes in the area.

%UDQFKHV LQ (VWHYDQ &DUQGXII DQG %UDQGRQ $UHDV

(/(&75,&$/ &216758&7,21 0$,17(1$1&( 6(59,&( (QIRUP &25 &HUWLĂ&#x20AC; HG 3/&Ň&#x2039;6 9)'Ň&#x2039;6 %$77(5< &216758&7,21 *(16(7 5(17$/6 75(1&+,1* 02725 6$/(6 5(3$,56

Oxbow â&#x20AC;&#x201C; As business continues to expand, Irwinâ&#x20AC;&#x2122;s Machining and Welding in Oxbow has continued to add capabilities. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;ve added to our shop. Weâ&#x20AC;&#x2122;ve added a big new CNC lathe. Now we have three,â&#x20AC;? said Cory Irwin, owner. â&#x20AC;&#x153;In the back, we put in a new CNC plasma table just before Christmas. Itâ&#x20AC;&#x2122;s the new toy. Theyâ&#x20AC;&#x2122;re getting down to a reasonable price, and they sure are handy. This one will cut up to one-inch thick material,â&#x20AC;? he said. â&#x20AC;&#x153;The eďŹ&#x192;ciency is the big thing. Any time you outsource, itâ&#x20AC;&#x2122;s one, two weeks. This way we can do it the same day. Itâ&#x20AC;&#x2122;ll ďŹ t a ďŹ ve by 10 foot sheet. We have an overhead crane and a magnet to pick up steel and put it on the table.â&#x20AC;? A large portion of the companyâ&#x20AC;&#x2122;s work is threading pipe. To that end, they have switched to three CNC lathes. â&#x20AC;&#x153;We donâ&#x20AC;&#x2122;t have any manual machines doing threading anymore. Itâ&#x20AC;&#x2122;s all CNC,â&#x20AC;? he said. â&#x20AC;&#x153;We got our ISO 9001 certiďŹ cation two years ago. Weâ&#x20AC;&#x2122;re working on our COR certiďŹ cation. Weâ&#x20AC;&#x2122;re just about there. É¸ Page C7

+285 6(59,&( '(921,$1 67 (67(9$1 6.

3+ )$; /2&$//< 2:1(' 23(5$7('

%UDQG 1HZ 3URSHUW\ :LWK $ &RQWHPSRUDU\ 'HVLJQ %XVLQHVV 6XLWHV $YDLODEOH &RPSOLPHQWDU\ +RW %XIIHW %UHDNIDVW +LJK 6SHHG ,QWHUQHW $FFHVV &RPSOLPHQWDU\ %XVLQHVV &HQWUH )LWQHVV &HQWHU 2Q 6LWH /DUJH 0HHWLQJ 5RRP :DWHU 3DUN :LWK +RW 7XE /RFNHU 5RRP $YDLODEOH

.LQJ 6WUHHW (VWHYDQ 6.

LQIR#PLFURWHOHVWHYDQ FRP ZZZ PLFURWHOHVWHYDQ FRP

)D[

0LFURWHO &RPLQJ 6RRQ 7R :H\EXUQ DQG /OR\GPLQVWHU 6. ,Q )DOO RI

Journeyman welder Howard Demchuk grinds oÄŤ the old bucket mount in preparaĆ&#x;on to install a new quick-aĆŠach system for a payloader.

PIPELINE NEWS March 2013 ɺ Page C6 Certifications may be time consuming and expensive, but they are also necessary. To that end, he said, “We’re going to work on our API certification next for thread cutting. A lot of companies are starting to ask for it in this area.” That’s particularly important because Irwin’s Machining sells into North Dakota. “We’re just slowly getting into it. There are shops moving in there, but they can’t build them fast enough. It takes time to get your equipment set up and people trained.” Irwin’s has nine people working for them, including three machinists, a parts person and several welders. One of the welders was working on building a quick-attach system for a payloader bucket. For several years, the company has built catwalks equipped with air rams for lifting and pushing the pipe up to the drill floor of a service rig. “We make quite a few of them now. We must have 20 out there now,” Irwin said. “It’ll lift it up to about three feet – waist height. There’s a ram at the end to push it up to the floor. “We’re making about six a year, on average. They’ve slowed up a bit now.” Threading pipe is the company’s main business. The welding end goes hand-in-hand with machining. “There are lots of things to build and repair – payloader parts, various rig repairs, some agriculture stuff,” he said. There’s also lots of drilling and service rig work. Oxbow is home to one of Saskatchewan’s largest drilling outfits as well as several service rig companies. Irwin’s is right next door to Saskarc Industries, an important partner. Saskarc has provided a large portion of the innards of the Boundary Dam carbon capture project, and is currently working on the venting system that will take the exhaust from the power plant and route it to the capture plant. Irwin’s will be putting holes in the ducting, allowing them to be bolted together. “We’ll have to make a template to make them all the same. We’ll probably use our plasma table for that. “It’s pretty cool to be a part of those big projects,” Irwin said. “It’s kind of a neat project.” The company picked up some former portable school classrooms and added them to their building to use for storage of parts. “With our part storage, we now have a full-line of bolts and bearings that saves a person a trip to Estevan.” For light-duty trailers, they also have a full-line of trailer parts.

Cory Irwin, owner of Irwin's Machining and Welding in Oxbow, says the new CNC plasma cuƩer table behind him allows them to work on projects the same day it comes in.

ESTEVAN ELECTRIC MOTOR DIV. New/Used Sales • Onsite Rewinding & Repair

REPAIR SHOP Trash Pumps • Lights, Heaters • Generators • Compressors • Converters

OilÀeld, Industrial, Commercial

Ph:(306) 634-9888

Genset / Light Towers Gas Powered Pumps / Air Compressor Telescoping Fork & Scissor Lifts Backhoe / Trenchers Trailers / Skidsteer Temporary Power Cable

Locally Owned and Operated

6RXWK (DVW 6DVNDWFKHZDQ )XOO 6HUYLFH 'ULOOLQJ )OXLG &RPSDQ\ OFFERING A COMPLETE LINE OF DRILLING FLUID PRODUCTS DESIGNED FOR DRILLING OF ANY TYPE OF WELL IN S.E. SASK & S.W. MANITOBA SUPPLY & SERVICE ANY TYPE OF FRESH WATER, SALT BASED AND OIL BASED MUD SYSTEMS CLAY STABILIZERS, LUBRICANTS, CORROSION INHIBITORS AND OTHER SPECIALTY PRODUCTS FOR COMPLETIONS & WORKOVERS

Trevor Van Alstyne 306-891-8917 Irwin’s Machining and Welding now has three CNC lathes. The largest, on the right, is one of the biggest in the region.

Weyburn, SK • www.alchem.ca

Tyson Ereth 306-891-8916

PIPELINE NEWS March 2013

The newest Western Star Inn & Suites opened in Stoughton in the second week of February. Itâ&#x20AC;&#x2122;s the fourth to open in less than a year in southeast Saskatchewan, joining similar faciliĆ&#x;es in Carlyle, Redvers and Esterhazy. Photo by Brian Zinchuk

Western Star opens fourth hotel, more to come

Centrifuges Shale Shakers Shaker Screens Drilling Fluids 805 Government Road S Weyburn, SK 306â&#x20AC;˘842â&#x20AC;˘0307

Stoughton â&#x20AC;&#x201C; The fourth of four Western Star Inn & Suites hotels in southeast Saskatchewan opened during the second week in February, but it wonâ&#x20AC;&#x2122;t be the last. Thatâ&#x20AC;&#x2122;s because while four were initially planned, the company will be building a ďŹ fth soon, and is looking for more opportunities in

Â´:H *R :KHUH <RXU +RH &DQÂˇW *RÂľ

the province as well as in southwest Manitoba. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re going to keep going,â&#x20AC;? said Carla Eagan, director of operations. Carlyle was ďŹ rst to open, followed by Redvers and Esterhazy. The Stoughton facility actually opened earlier than their initial plans when Carlyle was ďŹ rst announced. Construction at Stoughton started last summer. The design has evolved slightly. The Stoughton facility has a ďŹ tness centre equipped with a treadmill, bike, elliptical machine and weights. The breakfast area is much larger as well, with room to seat about 30 people. The menu has been expanded as well.

â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s not just bacon and eggs,â&#x20AC;? Eagan said. The newest hotel has kitchens in over half of its 63 rooms. Asked why they chose Stoughton, Eagan cited the demand for accommodations in the area. â&#x20AC;&#x153;They call it crossroads for a reason,â&#x20AC;? she said. As for staďŹ&#x192;ng, she said, â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re still looking and weâ&#x20AC;&#x2122;re looking to hire mostly local.â&#x20AC;? Having workers from other hotels in the area has helped to get the new location up and running. As for the ďŹ fth hotel, the location of which the company has not yet announced, she said, â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re hoping to break ground in the spring.â&#x20AC;?

6+23 2)),&( )25 /($6(

)RU DOO \RXU +\GURYDF DQG )UHVK :DWHU QHHGV &DOO 7UHYRU RU .LP ,QGXVWULDO 'ULYH 2[ERZ 6DVNDWFKHZDQ 3KRQH 2IĂ&#x20AC;FH

,1 7+( 72:1 2) 2;%2: Â&#x2021; 1HZO\ UHQRYDWHG VT IW EXLOGLQJ VT IW RI RIĂ&#x20AC;FH VSDFH LQFOXGHV RIĂ&#x20AC;FHV VT IW RI VKRS VSDFH Âˇ [ Âˇ

Â&#x2021; 6KRS LQFOXGHV Âˇ [ Âˇ RYHUKHDG GRRU Â&#x2021; &RUQHU ORW DSSUR[LPDWHO\ DFUHV

&$// 5<$1 60,7+ 60,7+ %8,/',1* '(9(/230(17 /7' )25 025( ,1)250$7,21

PIPELINE NEWS March 2013

Husky not dependent on rail Â&#x201E; GeoďŹ&#x20AC; Lee Calgary â&#x20AC;&#x201C; Husky Energy is not likely to climb aboard the rail bandwagon to ship bitumen from its 60,000 barrel per day Sunrise oilsands project when it starts producing oil in 2014. Thatâ&#x20AC;&#x2122;s the current position of Husky according to CEO Asim Ghosh in response to a question about potential rail shipments of bitumen from Sunrise that surfaced during the companyâ&#x20AC;&#x2122;s fourth quarter conference call on Feb. 6 â&#x20AC;&#x153;I will remind you that Husky actually has a lot of pipeline connectivity in place,â&#x20AC;? said Ghosh. â&#x20AC;&#x153;The combination of our internal pipeline connectiveness in Canada â&#x20AC;&#x201C; our Hardisty terminal through which somewhere between 20 to 25 per cent of all Canadian oil passes en route to the U.S. and the pipelines to the U.S. â&#x20AC;&#x201C; is somewhat diďŹ&#x20AC;erently positioned from some of our peers. â&#x20AC;&#x153;Our primary connectivity solution is focused around pipelines. Weâ&#x20AC;&#x2122;ve got a material amount of our production already covered through existing pipeline connectivity commitments, and we plan to increase that.â&#x20AC;? CN delivered the ďŹ rst carloads of bitumen from Southern PaciďŹ c Resource Corp.â&#x20AC;&#x2122;s oilsands project in January to southern U.S. markets with rail hauling on the rise among oil producers. CN plans to double its crude oil volumes from Western Canada to 60,000 carloads in 2013. â&#x20AC;&#x153;In our case, we see rail as a bit of a stop-gap solution to ďŹ ll in the blanks where youâ&#x20AC;&#x2122;ve got blanks,â&#x20AC;? said Ghosh. â&#x20AC;&#x153;So itâ&#x20AC;&#x2122;s a solution around the edges, and we are looking at expanding our rail capabilities, but even after weâ&#x20AC;&#x2122;ve done that, it will be a relatively small part of our total picture. â&#x20AC;&#x153;Rail is more ďŹ&#x201A;exible, but materially more expensive, so if you have the pipeline connectivity, pipeline is always the preferred way to go.â&#x20AC;? Ghosh also noted that Huskyâ&#x20AC;&#x2122;s pipeline connections currently only extend to the U.S. Midwest, but they have options on upcoming pipelines to the Gulf Coast. TransCanada Corporationâ&#x20AC;&#x2122;s proposed 1,897-kilometre Keystone XL pipeline will initially trans-

port 830,000 barrels of crude a day from Hardisty, Alta .to Steele City, Neb. Ghosh didnâ&#x20AC;&#x2122;t conďŹ rm if the Keystone XL would be one of their future pipeline links to Gulf Coast reďŹ neries. â&#x20AC;&#x153;We actually have a pretty signiďŹ cant network of pipeline access,â&#x20AC;? he said. â&#x20AC;&#x153;It is not based on one massive â&#x20AC;&#x2DC;winner take allâ&#x20AC;&#x2122; type of solution. We actually have a number of pipeline options. â&#x20AC;&#x153;There have been a lot of pipeline constraints recently, and there have been apportionments, and

the reason we have been able to ride that out is because we have more than one solution.â&#x20AC;? Ghosh said Husky has oil tankage at Patoka, Ill. on the main Keystone pipeline and tankage at Hardisty which allows the company to mitigate the results of short-term dislocations. â&#x20AC;&#x153;The simple answer is we have a complex network of commitments in place and more coming up, but donâ&#x20AC;&#x2122;t think of it as single dependency. If XL happens or XL doesnâ&#x20AC;&#x2122;t happen, what happens to us?â&#x20AC;? â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s not a place we are in right now.â&#x20AC;?

%UDQGRQ

:LQQLSHJ

6SHFLDOL]LQJ LQ 3UH (QJLQHHUHG %XLOGLQJ 6\VWHPV &RPPHUFLDO ,QGXVWULDO $JULFXOWXUDO 'HVLJQ %XLOG 6HUYLFHV XWLOL]LQJ WKH %HKOHQ %XLOGLQJ 6\VWHP

ZZZ FUDQHVWHHO FRP

C10

PIPELINE NEWS March 2013

TransCanada tackles pipeline capacity Calgary – TransCanada Corporation is tackling the issue of pipeline capacity on multiple fronts with $12 billion of pipeline and energy projects to be completed by 2015. These projects include the Gulf Coast and Keystone XL pipelines, the Keystone Hardisty Terminal expansion, the initial phase of the Grand Rapids pipeline, and the ongoing expansion of the Alberta system. “Since the beginning of 2012, we have secured about $16 billion of new projects which include Coastal GasLink and Prince Rupert Gas Transmission projects,” said company president and CEO Russ Girling during a fourth quarter conference call on Feb. 12. “The company now has a total of $25 billion of projects to bring on stream over the balance of this decade.” TransCanada is also planning to convert a portion of its Canadian Mainline natural gas pipeline along with adding new construction to carry Alberta crude to reﬁneries in Eastern Canada. A lack of pipeline capacity in Canada and a glut of oil in the U.S. Midwest may help TransCanada Corp. to secure a U.S. Presidential Permit to build

the proposed Keystone XL pipeline. The construction of the Gulf Coast pipeline section of the Keystone XL from Oklahoma to reﬁneries in Texas is 45 per cent complete. Girling expects the U.S. State Department to issue a decision on Keystone XL within two or three months, but he said the need for the pipeline is now as North American oil production increases. “Having the right infrastructure in place is critical to meeting the goal of reducing dependence on foreign oil and moving that oil in the most environmentally responsible way,” he said. “Keystone is the most studied pipeline ever proposed and it remains very much in Americans’ national interest to approve that pipeline.” The pipeline will help provide the U.S. with energy security and generate thousands of jobs during the construction period. The 1,897-kilometre, 36-inch pipeline will carry up to 830,000 bpd of oil from Hardisty to Steele City, Neb. and will cost US$5.3 billion to construct. “We expect regulatory approval in the ﬁrst half of 2013, and we still anticipate that the pipeline will become operational in late 2014 or early 2015,” said CONFIRMATION RUNS CLEANOUTS COMPOSITE PLUGS

PLUG MILLING FRAC SEAT MILLING TT FISHING

TOLL FREE DISPATCH 855-346-9788

CALGARY SALES 403-452-8337

DSI THRU-TUBING INC CebbY \a CXeYbe`TaVX

www.dsithrutubing.ca

Girling. The State Department expects to issue its Supplemental Environmental Impact Statement within days. “They have led us to the view that it is imminent,” said Girling. “Once the SEIS has been issued, we are of the view that the State Department is in receipt of absolutely every piece of information that could be required to make a decision. “There are a number of statutory notice periods in the remaining process.” “I would expect that we would be in a position anywhere between two and three months to get a decision from the State Department once that SEIS has been issued.” Nebraska Governor Dave Heineman approved the reroute of Keystone around the environmentally sensitive Sandhills area in his state on Jan 22. The approved reroute becomes part of the Presidential Permit application that was filed with the State Department which was filed on May 4, 2012. “This step does move us one step closer to Americans and Canadians receiving the benefits of Keystone XL, which is the connection of Canadian and U.S. production to U.S markets,” said Girling. The environmental activists opposing the Keystone XL have failed to stop construction of the US$2.3 billion, 36-inch Gulf Coast pipeline that has a full design capacity of 830,000 bpd. “The Gulf Coast project is decreasing the glut of oil in Cushing and providing American producers with a way of getting their domestic crude oil to market – that is the focus of the Gulf Coast project,” said Girling ɸ Page C11

Calgary, AB | Grande Prairie, AB | Red Deer, AB | Weyburn, SK

Prairie Petro-Chem A Clariant Oil Services Business

Clariant Oil Services and Prairie Petro-Chem

INTEGRITY MANAGEMENT SOLUTIONS FOR CO2 FLOODING

A LEADING PROVIDER OF CHEMICAL TECHNOLOGIES FOR TREATING CORROSION CAUSED BY CO2 FLOODS AND OTHER EOR APPLICATIONS Optimize production and minimize operational risk by putting our experience to work for you. Our chemical technologies and services are proven to resolve the corrosion challenges associated with CO2 ﬂooding. Contact your local sales professional for more information.

WWW.OIL.CLARIANT.COM

innovation assured. value delivered.

PIPELINE NEWS March 2013

C11

Éş Page C10 â&#x20AC;&#x153;As many of you may be aware, many out-ofstate activists have done their best to slow down the project and stop our project, primarily in Texas. â&#x20AC;&#x153;The 4,000 Americans that are building that project are pleased that hasnâ&#x20AC;&#x2122;t happened, and we look forward to putting them to work in the months ahead.â&#x20AC;? Construction of the Gulf Coast pipeline began in August 2012 with an expected completion date in early 2013. â&#x20AC;&#x153;The demand for the project is clear,â&#x20AC;? said Girling. â&#x20AC;&#x153;U.S. oil production has been growing signiďŹ cantly in states like Oklahoma, Texas, North Dakota and Montana, and producers donâ&#x20AC;&#x2122;t have suďŹ&#x192;cient access to pipeline capacity to move this production to market, primarily in the U.S. Gulf Coast. â&#x20AC;&#x153;The Gulf Coast project will address that restraint and allow U.S. reďŹ neries to access lower cost domestic production and avoid paying a premium to foreign producers.â&#x20AC;? TransCanada is also waiting for regulatory approval to begin construction of its $3 billion Grand Rapids pipeline project that will shuttle crude oil and diluents between northern Alberta and Edmonton on two pipelines. The project is a joint venture with Phoenix Energy, which has signed a long-term contract to ship crude oil and diluent on the pipeline system. â&#x20AC;&#x153;I think it positions our company very well to connect new supply from emerging developments west of the Athabasca River,â&#x20AC;? said Girling. â&#x20AC;&#x153;We expect to bring Grand Rapids on line in multiple stages, with the initial crude oil deliveries starting by mid-2015.â&#x20AC;? The 500-kilometre system should be completed in 2017 with full capacity of 900,000 bpd of oil moving south and 330,000 bpd of diluent moving north. Pipeline constraint is the motivating factor behind TransCanadaâ&#x20AC;&#x2122;s proposal to convert a portion of its Canadian mainline natural gas system to carry crude oil from Hardisty to Eastern Canada. Some new pipeline construction is required to make it work. â&#x20AC;&#x153;We have determined the project is both technically and economically feasible and that we continue to meet the needs of our natural gas customers,â&#x20AC;? said Girling. â&#x20AC;&#x153;Discussions with potential shippers and other stakeholder are well underway to determine if it is a project that the market wants. I would say to date, that those discussion have been very encouraging.â&#x20AC;? ReďŹ neries in Eastern Canada import approximately 600,000 bpd of higher priced oil produced in countries such as Saudi Arabia and Nigeria. â&#x20AC;&#x153;The project would support Eastern Canadian reďŹ neries with lower priced Western Canadian oil as well as the jobs that those reďŹ ners provide, along with allowing Canadians to beneďŹ t from oil produced from their own country,â&#x20AC;? said Girling. â&#x20AC;&#x153;Our expectation is that we will be able to advance this project into the next phase which is an open season to formally secure contractual support for the pipeline in the near future. â&#x20AC;&#x153;If successful, that would be followed by regulatory application, and we expect that to occur later in the year,â&#x20AC;? Girling said. TransCanada also proposes to extend the Alberta system in northeast B.C. to connect to both the recently announced Prince Rupert Gas Transmission project and to incremental North Montney gas supply. TransCanada expanded its Alberta system in 2012 with $650 million of pipeline projects completed and the National Energy Board approved $640 million of additional expansions in 2012. The NEB, however, denied approval of the Komie North extension component of the proposed Chinchaga expansion in January 2013.

TransCanada CorporaĆ&#x;onâ&#x20AC;&#x2122;s facility at Hardisty, Alta., will be put to the test if the U.S. State Department issues a PresidenĆ&#x;al Permit to commence construcĆ&#x;on of the U.S. porĆ&#x;on of the Keystone XL pipeline that will run from Hardisty to Steele City, Neb. The Canadian porĆ&#x;on has previously been approved. The U.S. State Department is expected to issue its ÄŽnal Supplemental Environmental Impact Statement any day now. File photo

EXPERIENCE INNOVATION

FOCUS

Customer service is our top priority and for more than 60 years Import Tool has been a leader in providing liner tool completions, stage cementing tools, casing packers, innerstring cementing service, ďŹ&#x201A;oat equipment and casing accessories to Canadian oil and gas companies who demand the best.

FIRST IN SERVICE, FIRST IN QUALITY TOOLS Saskatchewan and Manitoba

306â&#x20AC;˘634â&#x20AC;˘2511 78 Devonian Street ~ Estevan, Saskatchewan

Â&#x2021; 2LOĂ&#x20AC; HOG 0DLQWHQDQFH Â&#x2021; :HOGLQJ Â&#x2021; 2LOĂ&#x20AC; HOG &RQVWUXFWLRQ Â&#x2021; 3LSHOLQH &RQVWUXFWLRQ Â&#x2021; )DFLOLW\ &RQVWUXFWLRQ Â&#x2021; 0DLQOLQH 3LSHOLQH &RQVWUXFWLRQ Â&#x2021; 6DIHW\ 6DOHV 6HUYLFH Â&#x2021; (QYLURQPHQWDO 6HUYLFHV Â&#x2021; +RUL]RQWDO 'LUHFWLRQDO 'ULOOLQJ Â&#x2021; 3LFNHU 7UXFNV Â&#x2021; 3LOH 'ULYLQJ Â&#x2021; +\GUR YDF Â&#x2021; *UDYHO DQG 6DQG +DXOLQJ Â&#x2021; 6NLG 3DFNDJHV Â&#x2021; /HDVH 3UHSDUDWLRQ Â&#x2021; ,QVXODWLQJ Â&#x2021; 0DMRU )DFLOLW\ &RQVWUXFWLRQ Â&#x2021; *DV 3ODQW 7XUQDURXQGV

Ä&#x201A;Ć&#x152;Ć?Ĺ˝Ĺś ĹśÄ&#x17E;Ć&#x152;Ĺ?Ç&#x2021; ^Ä&#x17E;Ć&#x152;Ç&#x20AC;Ĺ?Ä?Ä&#x17E;Ć? Ç Ĺ˝Ć&#x152;ĹŹĆ? Ç Ĺ?Ć&#x161;Ĺ&#x161; Ä?ĹŻĹ?Ä&#x17E;ĹśĆ&#x161;Ć? Ä¨Ć&#x152;Ĺ˝Ĺľ ĎĎŻ ĹŻĹ˝Ä?Ä&#x201A;Ć&#x; Ĺ˝ĹśĆ? Ä&#x201A;Ä?Ć&#x152;Ĺ˝Ć?Ć? ĹŻÄ?Ä&#x17E;Ć&#x152;Ć&#x161;Ä&#x201A; Ä&#x201A;ĹśÄ&#x161; ^Ä&#x201A;Ć?ĹŹÄ&#x201A;Ć&#x161;Ä?Ĺ&#x161;Ä&#x17E;Ç Ä&#x201A;ĹśÍ&#x2022; Ć?Ä&#x17E;Ć&#x152;Ç&#x20AC;Ĺ?ĹśĹ? Ä&#x201A; Ä¨Ĺ˝Ĺ˝Ć&#x161;Ć&#x2030;Ć&#x152;Ĺ?ĹśĆ&#x161; Ä?Ĺ˝Ç&#x20AC;Ä&#x17E;Ć&#x152;Ĺ?ĹśĹ? Ä?Ĺ˝Ć&#x161;Ĺ&#x161; Ć&#x161;Ĺ&#x161;Ĺ˝Ć?Ä&#x17E; Ć&#x2030;Ć&#x152;Ĺ˝Ç&#x20AC;Ĺ?ĹśÄ?Ä&#x17E;Ć? Ä&#x201A;ĹśÄ&#x161; Ć?Ĺ˝ĆľĆ&#x161;Ĺ&#x161;Ç Ä&#x17E;Ć?Ć&#x161; DÄ&#x201A;ĹśĹ?Ć&#x161;Ĺ˝Ä?Ä&#x201A;Í&#x2DC; Â&#x2021; 6DVNDWRRQ Â&#x2021; 6ZLIW &XUUHQW Â&#x2021; /DPSPDQ Â&#x2021; (PHUDOG 3DUN Â&#x2021; 9LUGHQ Â&#x2021; +DOEULWH Â&#x2021; $OLGD Â&#x2021; :DLQZULJKW Â&#x2021; &DOJDU\ Â&#x2021; /OR\GPLQVWHU Â&#x2021; :KLWH &LW\ Â&#x2021; &DUO\OH Â&#x2021; 5HJLQD

ZZZ FDUVRQHQHUJ\VHUYLFHV FRP

C12

PIPELINE NEWS March 2013

Huskyâ&#x20AC;&#x2122;s downstream unit offsets price gap Â&#x201E; GeoďŹ&#x20AC; Lee Calgary â&#x20AC;&#x201C; Husky Energyâ&#x20AC;&#x2122;s downstream strategy is helping the Calgary-based oil producer and reďŹ ner to proďŹ t from crude oil price diďŹ&#x20AC;erentials. The companyâ&#x20AC;&#x2122;s focused integration strategy helped to trigger a 16 per cent rise in fourth quarter net proďŹ t of $474 million in 2012 in a market where discounts emerged for Western Canadian oil production.

Huskyâ&#x20AC;&#x2122;s production averaged 319,300 barrels of oil equivalent per day in the quarter, a slight increase from a year earlier. The company ended 2012 with an annual production average of 301,500 boepd compared to 312,500 boepd in 2011. Lower crude prices that cut into upstream margins were oďŹ&#x20AC;set by downstream reďŹ ning that beneďŹ ted from cheaper feedstock for their by-products.

Prices for Western Canada Select averaged $61.32 a barrel during the quarter compared with $88.23 for West Texas Intermediate and $110.13 for the global benchmark Brent. The average realized crude oil pricing during the fourth quarter was $72.17 per barrel, much lower than the $89.79 Husky enjoyed during the same period the previous year. â&#x20AC;&#x153;Increasing product and location diďŹ&#x20AC;erentials have had a signiďŹ The Lloydminster Husky Upgrader set records for monthly producĆ&#x;on, shipments and throughputs in 2012. Photo submiĆŠed

Your Home Away From Home

Estevanâ&#x20AC;&#x2122;s All Suite Hotel

â&#x20AC;˘ Your Furnished Apartment Suite Away From Home â&#x20AC;˘ 89 Non-Smoking Suites â&#x20AC;˘ Fully Equipped Kitchenettes â&#x20AC;˘ Fitness Centre â&#x20AC;˘ Meeting Room up to 50 People â&#x20AC;˘ High Speed, Hardwire and Wireless Internet â&#x20AC;˘ Brand New Hotel â&#x20AC;˘ Clean and Comfortable

404 Kensington Ave. Estevan

306-634-8332 Email: gm.cn923@choicehotels.com

cant impact on Western Canada pricing,â&#x20AC;? said chief ďŹ nancial oďŹ&#x192;cer Alister Cowan. â&#x20AC;&#x153;However our integrated downstream operations continue to give us the ďŹ&#x201A;exibility to capture world prices for our heavy, bitumen and light oil production.â&#x20AC;? The realized reďŹ ning margins averaged US$16.24 per barrel, compared with $14.80 in the same period in 2011. The strong performance of downstream business operations in 2012 was driven by high reliability and targeted investments to enhance feedstock, product and market ďŹ&#x201A;exibility Some details of the strategy were reported to analysts during Huskyâ&#x20AC;&#x2122;s Feb. 6 conference call on fourth quarter and 2012 ďŹ nancial and operating results. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;ve had a series of quarters of signiďŹ cant execution of solid performance in an environment where the industry continues to go through a period of depressed Western

12: 23(5$7,1* ,1 7+( 8 6

6HUYLQJ 6 ( 6DVN VLQFH )RU DOO RI \RXU RLOĂ&#x20AC;HOG +276+27 QHHGV

&DOO IRU LQTXLULHV DQG SULFLQJ

Canada pricing,â&#x20AC;? said Asim Ghosh, president and CEO. â&#x20AC;&#x153;Thatâ&#x20AC;&#x2122;s because our focused integration strategy is providing us with some safe harbour.â&#x20AC;? Husky reported net earnings for the year of approximately $2 billion, which is comparable to 2011, excluding after-tax gains on the sale of non-core assets despite the impact from planned maintenance programs in the Atlantic Region and weak gas prices. Cash ďŹ&#x201A;ow from operations of $5 billion was in line with 2011 results. Ghosh reported that strong throughput in Huskyâ&#x20AC;&#x2122;s downstream business made a signiďŹ cant contribution to earnings by capturing additional margins to achieve Brent-like pricing for all liquids production. Huskyâ&#x20AC;&#x2122;s downstream business contributed about $895 million in net earnings in 2012 compared to $813 million in 2011. â&#x20AC;&#x153;The U.S. reďŹ ning operations added $88 million to net earnings compared to $80 million in the same period in 2011,â&#x20AC;? said Cowan. â&#x20AC;&#x153;That reďŹ&#x201A;ects an increase in realized reďŹ ning margins as a result of higher market price spreads.â&#x20AC;? Throughput at the companyâ&#x20AC;&#x2122;s reďŹ neries and upgrader averaged 327,000 barrels per day in 2012, compared to 317,000 bpd in 2011. Fourth quarter

throughput averaged 335,000 bpd, compared to 324,000 bpd in the same period in 2011. The Lloydminster upgrader achieved several signiďŹ cant milestones during the year, including record monthly production, shipments and throughputs. â&#x20AC;&#x153;In our downstream business, our focused integration strategy was the big story of the year as we were faced with wide diďŹ&#x20AC;erentials and depressed Western Canadian pricing,â&#x20AC;? said Rob Peabody, chief operating oďŹ&#x192;cer. â&#x20AC;&#x153;There are three elements to our downstream strategy: Increasing input ďŹ&#x201A;exibility to access a variety of crude options, increasing our product ďŹ&#x201A;exibility to improve the range of what we make and ďŹ nally, improving our market ďŹ&#x201A;exibility to get the best prices for our products.â&#x20AC;? ModiďŹ cations are being made to the Lima and Toledo reďŹ neries in the U.S. to allow for increased consumption of heavy feedstocks. Husky is also starting to commission a 20,000 bpd kerosene hydrotreater at Lima. â&#x20AC;&#x153;This will give us more jet and diesel production while preserving the ďŹ&#x201A;exibility to swing back into gasoline,â&#x20AC;? said Peabody. â&#x20AC;&#x153;At the Toledo reďŹ nery, a new reformer unit has been installed. This reduces operating costs and increases our eďŹ&#x192;ciency.â&#x20AC;?

PIPELINE NEWS March 2013

C13

First MB sale of 2013 draws $723,703 Â&#x201E; By Richard Macedo (Daily Oil Bulletin) â&#x20AC;&#x201C; The Manitoba government opened up its 2013 land sale schedule in early Febrary with a bonus bid haul of $723,703, signiďŹ cantly lower than the record-breaking ďŹ rst auction of last year. The provincial government sold a total of 1,295.62 hectares at an average of $558.58 per hectare. The ďŹ rst sale of 2012 drew $8.02 million on 8,557.04 hectares at an average of $936.76, breaking all previous records for a single sale. At the February sale, the areas of interest were near the Birdtail ďŹ eld (Bakken/Bakken Three Forks) and a few parcels north of the Virden ďŹ eld near existing Lodgepole production, said Keith Lowdon, director, petroleum branch with the Manitoba government. â&#x20AC;&#x153;Manitoba is running low on available Crown lands in the oil producing areas,â&#x20AC;? he said. â&#x20AC;&#x153;There are some new parcels available for posting that were previously located in a restricted potash area. That area has been amended allowing for 15 new parcels to be posted.â&#x20AC;? Mammoth Land Services Ltd. paid the highest price per hectare at the February sale, for a parcel located in the Virden area. The ďŹ rm paid $1,655.18 per hectare and a bonus of $105,931 for the 64-hectare parcel. The broker acquired the southwest quarter of section 29 at 12-26W1. Two leases tied for the land sale bonus bid high of $168,080 for identical 128-hectare parcels, and each produced the same average price of $1,313.13. Windfall Resources Ltd. picked up one of the parcels, which included the northern half of section 20 at 15-28W1. The other parcel, acquired by Plunkett Resources Ltd., included the southern half of section 20 at 15-28W1. Bulletin records show Tundra Oil & Gas Partnership and Crescent Point Energy Corp. were

busy licensing wells to the south in the Manson area in January and early February around 1328W1, all listing oil as the objective with the Mississippian System as the total depth zone. On Feb. 13, Crescent Point licensed an

outpost horizontal well with a projected depth of 2,189-metres located at surface location 09-0213-28W1 in the Manson area. This was the ďŹ rst of four sales scheduled for 2013. The next sale will be held on May 15.

Âˇ %220 )25 5(17 Â&#x2021; 6FLVVRU /LIWV (OHFWULF 'XDO )XHO Â&#x2021; 0DQ /LIWV Â&#x2021; 6WUDLJKW %RRP

Â&#x2021; $UWLFXODWLQJ %RRP Â&#x2021; =RRP %RRP )RUNOLIWV Â&#x2021; 'LHVHO 7DPSHUV Â&#x2021; 'LHVHO +HDWHUV

* 7 + +2/',1*6 ,1& &KDG &HOO *DUU\ &HOO (VWHYDQ 6.

C14

PIPELINE NEWS March 2013

9LVLW 8V DW WKH :H\EXUQ 2LO 6KRZ 2XWGRRU %RRWK Doing it RIGHT Doing it ON TIME!

6$/(6 $1' 5(17$/6 2) 1(: $1' 5(&21',7,21(' 2,/),(/' (48,30(17 Â&#x2021; Â&#x2021; Â&#x2021; Â&#x2021; Â&#x2021; Â&#x2021; Â&#x2021; Â&#x2021;

EEO $3, ) 0RQRJUDPPHG 6WHHO 7DQNV EEO $3, 3 0RQRJUDPPHG )53 7DQNV Âµ [ Âµ SVL 3RUWDEOH 7HVW 6HSHUDWRUV Â· [ Â· 9HUW OE 7UHDWHUV Â· [ Â· OE +] ):.2V Â· [ Â· OE +] 7UHDWHUV )ODUHVWDFNV 6DWHOOLWH 3DFNDJHV

758&.,1*

Â&#x2021; 7RQ 3LFNHUV ZLWK 'XDO :LQFK Â&#x2021; 7RQ 3LFNHU Â&#x2021; 7RQ 7H[DV %HG 7UXFNV Â&#x2021; 7UL $[OH Â· 2LOÃ&#x20AC;HOG )ORDWV F Z &HQWUH 5ROO Â&#x2021; 7DQGHP DQG 7UL $[OH +LER\V Â&#x2021; 2QH 7RQ 7UDLOHUV Â&#x2021; 6DQGEODVWHU 3DLQWHU

9LHZ RXU ZHEVLWH IRU D FRPSOHWH OLVWLQJ RI VHUYLFHV DQG HTXLSPHQW

3K )D[ FRG\JULPHV#HDJOHRLOÃ&#x20AC;HOGVHUYLFHV FRP P GRW\#HDJOHRLOÃ&#x20AC;HOGVHUYLFHV FRP ZZZ HDJOHRLOÃ&#x20AC;HOGVHUYLFHV FRP

%R[ $UFROD 6. 6 & *

PIPELINE NEWS March 2013

C15

Keystone advocates converge in Washington Washington, D.C. – TransCanada Corporation and supporters of the proposed Keystone XL gathered in the U.S. capital on Feb. 19 to counter opposition to the project by environmental and political activists. Pipeline advocates were in Washington, D.C. to reiterate the facts that the pipeline remains vital to the national interest of the United States, increasing energy security, advancing energy independence, creating jobs and fuelling economic recovery. The group included representatives from the National Association of Manufacturers, Veterans in Piping, the United Association API, the U.S. Chamber of Commerce and Michels – the primary contractor responsible for the current construction of the Gulf Coast pipeline. “The quality and commitment of those standing with me today demonstrates how vital this project is to U.S. national energy security, the economy and the average American worker,” said Alex Pourbaix, TransCanada’s president of energy and oil pipelines. “So it’s really a question of where the U.S. wants its oil to come from – does the U.S. want its oil from a friendly neighbour in Canada and domestic sources like the Bakken play, or does it want to continue to import higher-priced foreign oil from nations that do not support U.S. values? It’s that simple.” The gathering of supporters came just days after thousands of protesters rallied in Washington demanding U.S. President Barack Obama end climate change and reject the proposed Keystone XL pipeline project. Rally organizers claimed the Keystone XL would contribute to global warming. A decision on Keystone XL is expected to come from the State Department in the coming weeks. Proponents of the pipeline argue the project will help the U.S. displace approximately 830,000 barrels of unstable foreign oil from hostile regimes, with oil from a friendly neighbour in Western Canada. The total capacity of the Keystone XL will include 250,000 bpd from U.S oil producers in states such as Montana and North Dakota. The US$2.3 billion Gulf Coast pipeline – the southern leg of the Keystone XL, is now 45 per cent complete. Close to $1.2 billion worth of goods for the pipeline has been sourced from U.S. manufacturers to date according to Pourbaix. Pourbaix points out that the main beneﬁt of Keystone XL and the Gulf Coast pipeline is jobs. The company is currently employing 4,000 American workers building the Gulf Coast project in Texas and Oklahoma. “With over 50 per cent unemployment in our pipeline construction sector, Keystone XL pipeline project stands as the largest single private investment opportunity for a path back to a paycheque

ANNER BIT SERVICE SURFACE BIT RENTAL QUALITY RERUN & RETIP 24 HR SERVICE CHAD FROESE

CELL: 306-421-3726 RES: 306-634-7538 OFFICE: 306-388-2941

for our members,” said United Association special representative David Barnett. The Keystone XL pipeline would put another 9,000 Americans to work constructing the line.

TransCanada, alone, has contracts with over 50 suppliers across the U.S. who are manufacturing equipment needed to build the Keystone XL.

Frost

There's been a lot of frost around Stoughton this February. Photo by Brian Zinchuk

Gibson Welding Ltd. Oilfield Trucking & Rentals

861-1280 861-1280 Jason 861-2567 John

John

Fax 842-1707 gibsonwelding10@hotmail.com P.O. BOX 926, WEYBURN, SK S4H 2L2

35, 28 30 & 23 • 45,•35, 23 Ton TonPickers Pickers • Bed Truck • Bed Truck • Pipe Custodian • Pipe Custodians • Pipe Racks • Pipe Racks • Rig Matts • Rig Matts • Flarestack Sales & Rentals • Flarestack Sales & Rentals • Tubing Trailers • 400• 400 BBLBBL Test Tank Sales Test Tank Sales&&Rental Rental • Wellhead Sales & Installation • Wellhead Sales & Installation • Backhoe & Skid Steer • Backhoe & Skid Steer • Steamer • Steamer • Crew Truck • Test Separators • Test Separators • Work Strings • Work Strings • Light Towers • Light Towers • COR CertiÀ ed • COR Certified

C16

PIPELINE NEWS March 2013

Pump alert system protects key systems Electrical apprenĆ&#x;ce Lisa McKenzie uses a laptop to program various PLCs into the control systems of the drilling rig, including the new Pump Alert.

Estevan â&#x20AC;&#x201C; When you start your car or truck, the ďŹ rst thing that happens when you turn the ignition is the lighting of the instrument panel warning lights. These â&#x20AC;&#x153;idiot lights,â&#x20AC;? as theyâ&#x20AC;&#x2122;re often called, warn you if something wrong with your vehicle, be it the brakes or oil pressure. Itâ&#x20AC;&#x2122;s a universal technology that has been used for decades in the automotive world. Yet when it comes to drilling rigs, that basic technology has not been present for monitoring key equipment on the machine â&#x20AC;&#x201C; the very heart of the rigâ&#x20AC;&#x2122;s circulatory mud system â&#x20AC;&#x201C; the mud pump. Thatâ&#x20AC;&#x2122;s now changed with the introduction of the Pump Alert, a system designed and installed by Devon, Alta.-based Mustang Controls. Their ďŹ rst implementation of this system has been on Stampede Drillingâ&#x20AC;&#x2122;s Rigs 1 and 2. Rig 2 was nearing completion in Estevan on Jan. 29, when Pipeline News was able to catch up with Mustang owner Bruce McKenzie. â&#x20AC;&#x153;We did the drillerâ&#x20AC;&#x2122;s console, accumulator, BOPS, Crown Alert system and the new Pump Alert system,â&#x20AC;? he said. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s brand new. Weâ&#x20AC;&#x2122;ve got the patent pending and trademark on the gizmo,â&#x20AC;? he said. Describing Pump Alert, he said, â&#x20AC;&#x153;It protects the mud pumps. Most rigs have one or two, oďŹ&#x20AC;shore rigs have up to four. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;ll protect the engine, gearbox, pump ďŹ&#x201A;uid end and power end. There are temperature, pressure, oil level and ďŹ&#x201A;ow sensors. â&#x20AC;&#x153;What they normally have is a gauge â&#x20AC;&#x201C; one pump is worth in excess of $100,000.â&#x20AC;? To monitor the health of the system, a rig hand would have to walk up to the equipment and eyeball the gauges. If he wasnâ&#x20AC;&#x2122;t looking at those gauges, he wouldnâ&#x20AC;&#x2122;t know if something was wrong. And therein lies the problem with the old system, according to McKenzie. â&#x20AC;&#x153;The bit technology has increased the ROP (rate of penetration) three times. The same number of rig hands, same machine, is going three times as fast. Quite honestly, they donâ&#x20AC;&#x2122;t have time to check pump pressure. The wells are 10 times as complex. É¸ Page C18

6XSSOLHU RI Â&#x2021; 'ULOOLQJ 5LJ &RQWUROV Â&#x2021; $3, $FFXPXODWRUV Â&#x2021; $3, %23ÂˇV Â&#x2021; &URZQ $OHUW Â&#x2021; 3XPS $OHUW Â&#x2021; 7RWDO 3/& 5LJ &RQWUROV Â&#x2021; &RPSOHWH 5LJ :LULQJ Â&#x2021; %23 DQG VSRRO UHQWDOV

%RRN \RXU VSULQJ XSJUDGHV WRGD\

ZZZ PXVWDQJFRQWUROV FRP 5HDG DERXW WKH QHZ 0XVWDQJ &RQWUROV 3XPS $OHUW 6\VWHP LQ WKLV LVVXH RI 3LSHOLQH 1HZV

2IĂ&#x20AC;FH $IWHU +RXUV LQIR#PXVWDQJFRQWUROV FRP

PIPELINE NEWS March 2013

7+ $118$/

0$5&+ 7+ 6$6.$7&+(:$1 (1(5*< 75$,1,1* ,167,787( %28548,1 52$' (67(9$1 6. $0 30

63($.(56 0LNH +DUQHWW ,QGXVWULDO (UJRQRPLFV 6SHFLDOLVW

7RGG +DQ 6DVNDWFKHZDQ 0LQLVWU\ RI (QHUJ\ DQG 5HVRXUFHV

7LP .DO\QFKXN 6DVNDWFKHZDQ :RUNHUVÂ· &RPSHQVDWLRQ %RDUG

*UHJ /HZLV (QYLURQPHQWDO 6FLHQWLVW

-HQQLIHU 1HLOVHQ (QYLURQPHQWDO &RQVXOWDQW

6\OYLD <DHJHU 0RWLYDWLRQDO +HDOWK :HOOQHVV ([SHUW

5(*,675$7,21

LVV 'RQÂ·W 0 2XW

5HJLVWH U 7RGD\

C17

C18

PIPELINE NEWS March 2013

External monitoring system

/DPRUR 6W MXVW RII +Z\ : RI (VWHYDQ

2IĂ&#x20AC;FH )D[

&25 &HUWLĂ&#x20AC;HG

Éş Page C16 â&#x20AC;&#x153;When they have a failure on the rig because they didnâ&#x20AC;&#x2122;t see that temperature or pressure, it was because they were too busy. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s a drillerâ&#x20AC;&#x2122;s assistant,â&#x20AC;? he said. The system has sensors that monitor temperature and oil pressure to ensure the pump is getting lubrication, indicated by a pressure transducer that sends a signal to the Pump Alert. Similarly, the liner washer of the pump has a ďŹ&#x201A;ow sensor. There are also sensors on the massive Caterpillar engine that drives the pump, as well as the Rouse Industries clutch. The engine connections parallel the engine lightâ&#x20AC;&#x2122;s operation. If any of these sensors indicate parameters out of normal operation, a siren and system of lights are activated. On the outside of the pumphouse, on the roof corner nearest the drill ďŹ&#x201A;oor, two lights are found in explosion-proof housings. Itâ&#x20AC;&#x2122;s a simple concept. The green light indicates all is well. The red light indicates a problem. The lights are set up to be in the drillerâ&#x20AC;&#x2122;s line of sight as he looks up from his station towards the drill ďŹ&#x201A;oor. â&#x20AC;&#x153;They have to go to the pump to silence the alarm. Thatâ&#x20AC;&#x2122;s done on purpose. Itâ&#x20AC;&#x2122;s easy to forget,â&#x20AC;? McKenzie said. If a pump piles up due to lack of lubrication, it can be very costly to rebuild â&#x20AC;&#x201C; costly enough that one might want to consider simply replacing it. The Pump Alert is meant to catch any failures before they become catastrophic. McKenzie calls it â&#x20AC;&#x153;a highly economical insurance policy.â&#x20AC;? The system has been ďŹ eld tested. â&#x20AC;&#x153;Every time you start the pump, you test it,â&#x20AC;? he said, noting it has a self-diagnostic function. As for its origins, McKenzie said, â&#x20AC;&#x153;Bill Devins came to us and asked, â&#x20AC;&#x153;If you could build some sort of system to watch our pumps, it would be much appreciated.â&#x20AC;&#x2122;â&#x20AC;? Devins is one of the principals behind Stampede Drilling. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re customer-driven, with open ears. Itâ&#x20AC;&#x2122;s worked for us.â&#x20AC;? McKenzie said. McKenzie said 90 per cent of rigs have a similar set-up, and this system can be retroďŹ tted to existing rigs quite easily. As for the â&#x20AC;&#x153;We canâ&#x20AC;&#x2122;t do it until spring,â&#x20AC;? comment, he noted, â&#x20AC;&#x153;I think we can walk up to a mud pump at the start of a cement job and be done in six to eight hours.â&#x20AC;? Thatâ&#x20AC;&#x2122;s a downtime for mud pumps, as they are not used during cementing operations. The system takes two people to install. É¸ Page C19

5HTXLUHG ,PPHGLDWHO\ Â&#x2021; 3LSHILWWHU Â&#x2021;$SSUHQWLFH -RXUQH\PDQ (OHFWULFLDQV

1(: (/(&75,&$/ ',9,6,21 Â&#x2021; :DWHU 'LVSRVDO ,QMHFWLRQ 6NLG 3DFNDJHV Â&#x2021; +HDGHU 3DFNDJHV Â&#x2021; 9HVVHO 3DFNDJHV Â&#x2021; 7UXFN 8QORDGLQJ 3DFNDJHV Â&#x2021; ' 'UDIWLQJ 6HUYLFHV Â&#x2021; 0&& /DFW 8QLWV Â&#x2021; 3UHVVXUH 3LSLQJ 6\VWHPV Â&#x2021; 6HOI )UDPLQJ %XLOGLQJV Â&#x2021; ,QGXVWULDO ,QVXODWRUV Â&#x2021; 8WLOLGRU %XLOGLQJV

ZZZ EUHQWJHGDNZHOGLQJ FRP

Â&#x2021; 6KRS 6XSHUYLVRU Â&#x2021; 3UHVVXUH :HOGHUV Â&#x2021; 6WUXFWXUDO :HOGHUV Â&#x2021; ,QVXODWRU $SSUHQWLFH /DERXUHUV Â&#x2021; 3DLQWHU

Â&#x2021; 7KH VXFFHVVIXO DSSOLFDQWV PXVW KDYH YDOLG GULYHUV OLFHQFH + 6 $OLYH VW $LG &35 DQG )DOO $UUHVW VDIHW\ FRXUVHV Â&#x2021; 0XVW SDVV GUXJ DQG DOFRKRO WHVWLQJ Â&#x2021; +HDOWK EHQHILWV DQG 5563 SODQ RIIHUHG Â&#x2021; :DJHV EDVHG RQ H[SHULHQFH Â&#x2021; 1RQ ORFDO DSSOLFDQWV PXVW EH ZLOOLQJ WR UHORFDWH 3OHDVH DSSO\ WR -RDQQH E\ HPDLO ID[ RU LQ SHUVRQ

HPDLO MVFKXOWH#EUHQWJHGDNZHOGLQJ FRP RU E\ )D[ WR Â˛ /DPRUR 6WUHHW +Z\ :HVW RI (VWHYDQ ZZZ EUHQWJHGDNZHOGLQJ FRP

PIPELINE NEWS March 2013 ɺ Page C18 The company’s Crown Alert system had a similar development path. Previous designs, he noted, “didn’t work.” “It’s rig crews who say ‘Can you do something for us?’” McKenzie said. The system itself is PLC (programmable logic controller) driven. “Lisa builds them,” he said, speaking of his 20-year-old daughter who is a third-year electrical apprentice. She’s one of the 20 people who works with Mustang Controls. Lisa works under senior automation manager Corey Grajowski. “I’m his trainee,” she said. “I started here a year ago. I worked for a different company first.” McKenzie said, “Her mom and I thought it was good for her to work somewhere else first. It was the smartest thing we ever did.” Having experience outside the family business was very important to gather outside, more worldy experiences. That’s important, because Mustang works all over. On this day, they were in Estevan. The next day, somewhere else. Asked where they were based, McKenzie said, “We’re based in the hotel we’re in.” “We’ve got a guy on a plane to Singapore tomorrow. We’re worldwide.”

C19

Bruce McKenzie’s eyeline leads to a red and green light system for the Pump Alert, easily visible from the driller’s staƟon. Green means good. Red, of course, means stop!

C20

PIPELINE NEWS March 2013

Lloyd reigns in Ă&#x20AC;rst Crown land sale Regina â&#x20AC;&#x201C; It was Lloydminsterâ&#x20AC;&#x2122;s turn to be king of the castle in the ďŹ rst sale of the year of Crown petroleum and natural gas rights. The February sale generated $11.9 million in revenue for the province, with $5.9 million of that generated by bids in the Lloydminster area The Weyburn-Estevan area was next at $3.7 million, followed by the Swift Current area at $1.3 million and the Kindersley-Kerrobert area at $1 million. Februaryâ&#x20AC;&#x2122;s sale included 104 lease parcels that brought in $11.8 million in bonus bids and two petroleum and natural gas exploration licences that sold for $125,000. â&#x20AC;&#x153;Land sale revenues remain steady as producers show conďŹ dence in the oil and gas markets and the competitive environment found in Saskatchewan,â&#x20AC;? said Tim McMillan, minister responsible for Energy and Resources. â&#x20AC;&#x153;It is encouraging that in this climate of record production, industry continues to identify new prospects and compete in our land sale, often ďŹ ercely, for the right to explore these prospects.â&#x20AC;? The Lloydminster area also had the highest price in the province for a single parcel of land at

$967,555. Ranger Land Services Ltd. acquired this 210-hectare lease north of Lloydminster. The highest price on a per-hectare basis was $10,265. Plunkett Resources Ltd. bid $332,277 for a 32-hectare lease parcel south of Weyburn. The next sale of Crown petroleum and natural gas dispositions will be held on April 8. Lloydminster area (numbers rounded oďŹ&#x20AC; ) The top purchaser of acreage in this area was Ranger Land Services Ltd., who spent approximately $2.5 million to acquire six lease parcels. The top price paid for a single lease in this area was $967,555 by Ranger Land Services for a 210.44 hectare parcel situated adjacent to the Northminster North G.P. Sand Oil Pool, eight kilometres northeast of Lloydminster. The highest price for a single licence in this area was $70,183, which was paid by Tamarack Valley Energy Ltd. for a 1,068 hectare block situated three kilometres east of the ReďŹ&#x201A;ex Lake St. Walburg Sand Oil Pool, 10 kilometres south of Marsden. The highest dollar per hectare in this area was received from Ranger Land Services who paid $5,014/hectare for a 16.19 hectare parcel located within the Buzzard North Mannville Sand Oil

* Bed Trucks * Winch Tractors * Pickers

Pool, 10 kilometres southwest of Lashburn. Weyburn-Estevan area The top purchaser of acreage in this area was Fire Sky Energy Inc., who spent $740,666 to acquire three lease parcels. The highest price paid for a single lease in this area was $562,222, by Fire Sky Energy for a 259 hectare parcel situated three kilometres east of the Pinto Midale and Frobisher Beds Pools, 13 kilometres southwest of Alameda. The highest dollar per hectare in this area was received from Plunkett Resources Ltd., who paid $10,265/hectare for a 32.37 hectare parcel located within the Weyburn Midale and Frobisher Beds Pools, 15 kilometres south of Weyburn. Swift Current area The top purchaser of acreage in this area was Husky Oil Operations Limited, who spent $765,972 to acquire three lease parcels. The top price for a single lease in this area was $571,408, paid by Husky Oil Operations for a 129.50 hectare parcel situated adjacent to the Bone Creek upper Shaunavon Oil Pool, 23 kilometres northwest of the town of Shaunavon. This parcel is the highest dollar per hectare in this area at $4,412/ hectare. Kindersley-Kerrobert area The top purchaser of acreage in this area was Petrobank Energy and Resources Ltd., who spent $727,645 to acquire eight lease parcels. The top price for a single lease in this area was $182,004, paid by Petrobank Energy and Resources for a 1,036 hectare parcel situated 20 kilometers northeast of the Plenty Viking Sand Oil Pool, 22 kilometres northeast of Dodsland. The highest dollar per hectare in this area was received from Petrobank Energy and Resources, who paid $580/hectare for a 16.09 hectare parcel located within the Plover Lake East Bakken Sand Oil Pool, 23 kilometres west of Kerrobert.

RIG MOVING Phone: 482-3244 PERCY H. DAVIS LTD.

CUSTOMS BROKERS

Forwarders & Consultants Custom Clearance Specialists

EDI Networking

Check out our International Small Package Service

DAILY DELIVERIES INTO ESTEVAN HEAD OFFICE North Portal (306) 927-2165 Estevan (306) 634-5454 Regina ................................(306) 352-2662 Saskatoon...........................(306) 244-4847 Regway...............................(306) 969-2126 Moose Jaw .........................(306) 694-4322

Â&#x2021;

0HOYLOOH : Â&#x2021; :LOOPDU :

Nationwide Services www.percydavis.com E-mail Address: info@percydavis.com

PIPELINE NEWS March 2013

C21

When all else fails, hit the red button Things are going badly, and in a hurry. How do you shut down the rig quickly? One option is to hit the big red button â&#x20AC;&#x201C; the Emergency Shut Down (ESD), a product that has been oďŹ&#x20AC;ered by Mustang Controls for the last three years. This panic button is designed to shut down the primary functions of the rig right away, before something really bad happens. Bruce McKenzie, owner of Mustang Controls, said, â&#x20AC;&#x153;There have been quite a few accidents. One that comes to mind is a worker was standing in the doghouse, and a young fellow was on the drill ďŹ&#x201A;oor. He got wrapped up in the Kelly with the pressure washer hose. Someone could have saved his life, but they couldnâ&#x20AC;&#x2122;t shut it down in time.â&#x20AC;? The system has three buttons. â&#x20AC;&#x153;Thereâ&#x20AC;&#x2122;s one in the doghouse, the driller has one, and thereâ&#x20AC;&#x2122;s one in the accumulator,â&#x20AC;? McKenzie said. The accumulator is where the crew can control the blowout preventer system (BOPS) to shut down the well. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s the ďŹ nal stand if the rig is going to burn,â&#x20AC;? he said. â&#x20AC;&#x153;(The ESD) kills the mud pump, ďŹ&#x201A;oor motor and applies the crown saver. Itâ&#x20AC;&#x2122;s electric over pneumatic. Weâ&#x20AC;&#x2122;re applying the air shutoďŹ&#x20AC;s with this button.â&#x20AC;? â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;ve done it for quite a few contractor rigs. They were ďŹ rst implemented on Ensign rigs three years ago. Ensign came to us and asked us if we could do this.â&#x20AC;? Itâ&#x20AC;&#x2122;s become a common feature for most of the recent rigs Mustang has worked on, but not all. â&#x20AC;&#x153;People are starting to realize its value,â&#x20AC;? McKenzie said.

FOR ALL YOUR VACUUM TRUCK NEEDS When all else fails, hit the red buĆŠon to shut down the rig.

TANDEMâ&#x20AC;˘TRI-AXLEâ&#x20AC;˘SEMI-VAC UNITSâ&#x20AC;˘COMBO UNITSâ&#x20AC;˘TANK TRUCKS

&/$66,& 9$&880 758&. /7' Â&#x2021; +RXU 6HUYLFH Â&#x2021; 2LO &OHDQXS Â&#x2021; 'ULOOLQJ 5LJ 6HUYLFH 5LJ :RUN Â&#x2021; 9DF 7UXFNV Â&#x2021; :DWHU 7UXFNV Â&#x2021; 6WHDPHUV Â&#x2021; )LUH 7UXFN Â&#x2021; $LU 7UDLOHUV Â&#x2021; 6DIHW\ &RQVXOWDQWV

&25 &HUWLĂ&#x20AC;HG $OLGD 6DVNDWFKHZDQ Â&#x2021;

306â&#x20AC;˘482â&#x20AC;˘7897 OR 306â&#x20AC;˘485â&#x20AC;˘7833

Regina, Sask.

Custom Industrial Accommodation Skid shak office & Washroom units â&#x20AC;˘ 12â&#x20AC;&#x2122; x 60â&#x20AC;&#x2122; â&#x20AC;˘ 12â&#x20AC;&#x2122; x 40â&#x20AC;&#x2122; â&#x20AC;˘ 12â&#x20AC;&#x2122; x 28â&#x20AC;&#x2122; â&#x20AC;˘ 10â&#x20AC;&#x2122; x 24â&#x20AC;&#x2122; If itâ&#x20AC;&#x2122;s not hard, itâ&#x20AC;&#x2122;s just a shack!

Ph: (306)545-SHAK (7425) www.hardshak.com

C22

PIPELINE NEWS March 2013

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

Leading g The Wayy

Suite 700, 808 - 4th Avenue SW Calgary, AB, Canada T2P 3E8 Phone: 403.266.3922 Fax: 306.266.3968 TSX: CDI Offices in Calgary, Nisku, and Carlyle, as well as Midland, Texas and Mohall, North Dakota

Setting new standards for performance Since it was established in late 2008, CanElson Drilling Inc. has grown quickly to become one of Canada’s premier drilling contractors. In addition to building its own drilling rigs, the company is expanding its Àeet of drilling and service rigs through acquisition. CanElson now operates a Àeet of 40 rigs. With operations in Western Canada, West Texas, North Dakota and Mexico, CanElson Drilling Inc. is setting new standards for rig utilization. With right-sized, purpose-built rigs built for horizontal and resource play drilling and experienced, well trained crews, the company is achieving new records for cost-effective, ef¿cient drilling operations.

Fast Growing Company

Opportunities On Our Rigs CanElson Drilling Inc. is currently looking for hard working individuals that are looking for challenging and rewarding work on top-of-the-line equipment in Saskatchewan. We provide competitive wages and stock options for Drillers and Rig Managers. Interested individuals can drop off resumes in person at our Carlyle Office or fax to 306-453-2508.

www.

CanElsonDrilling.com

PIPELINE NEWS March 2013

C23

Echo boom likely from explosive growth Regina â&#x20AC;&#x201C; Jobs, housing starts and manufacturing have become bigger pieces of Saskatchewanâ&#x20AC;&#x2122;s economic pie judging from fresh statistics from the Ministry of Economy for stale months. On the employment front, Saskjobs.ca started the year strong with 1,098,651 visits to the website in January 2013, up 17.96 per cent over January 2012 according to a Feb.12 news release. â&#x20AC;&#x153;New and exciting employment opportunities are available each and every day throughout this growing province,â&#x20AC;? said Economy Minister Bill Boyd. â&#x20AC;&#x153;Saskjobs continues to be the foremost portal for connecting job seekers to employers in Saskatchewan.â&#x20AC;? Employers posted a total of 16,522 jobs on saskjobs.ca in January 2013, up 12.26 per cent year-over-year. Of those postings, the majority of job opportunities were available under the category of Sales and Services, which comprised 31.46 per cent of all jobs posted. Trades, Transport and Construction opportunities also made up a large portion of the jobs posted at 28.36 per cent. Meanwhile, the most signiďŹ cant year-over-year gains were seen in: art, culture, recreation and sport (73.37 per cent); health (36.44 per cent); and business, ďŹ nance and administration (33.81 per cent). â&#x20AC;&#x153;There were a total of 348 communities throughout this province that had jobs posted on the website,â&#x20AC;? Boyd said. â&#x20AC;&#x153;This is just further proof that opportunities are available to individuals in every corner of this province and are not just available in our urban centres.â&#x20AC;? Earlier this month, the Ministry of Economy launched a Saskatchewan Jobs Facebook page at www.facebook.com/SaskatchewanJobs. The construction sector is starting oďŹ&#x20AC; the ďŹ rst quarter of 2013 energized by a banner year in 2012 that ended with the highest number of housing starts since the 1970s according to a Feb. 12 news update. The latest Canada Mortgage and Housing Corporation (CMHC) report indicates, urban and rural housing starts in the province totaled 9,968 units. The report also indicated that urban housing starts in Saskatchewan in-

MAINTENANCE

creased in 2012, up 39.9 per cent compared to 2011, putting Saskatchewan in ďŹ rst place among the provinces in terms of percentage change. In December 2012, urban housing starts increased by 70.7 per cent compared to December 2011, the second-highest percentage increase among the provinces. The manufacturing sector has been no slouch either in recent months. Manufacturing shipments in Saskatchewan jumped 4.9 per cent in December 2012, totaling nearly $1.2 billion and setting a new monthly record for the province. Saskatchewan placed third among the provinces in terms of year-over-year percentage change according to a Feb. 15 news release. â&#x20AC;&#x153;Our provinceâ&#x20AC;&#x2122;s manufacturers continue to expand their reach in the global marketplace and these new numbers are just further proof that their goods remain in high demand,â&#x20AC;? said Boyd. â&#x20AC;&#x153;A robust manufacturing sector is an indicator of the great conďŹ dence that exists in the Saskatchewan economy.â&#x20AC;?

*LEVRQ :HOGLQJ /WG

1HZ WRQ 1HZ DQG DQG XVHG XVHG EDUUHO EDUUHO WDQNV WDQNV IRU IRU VDOH VDOH WRQ SLFNHU DQG GRXEOH GURS WUDLOHU DYDLODEOH IRU GHOLYHU\ SLFNHU DQG GRXEOH GURS WUDLOHU DYDLODEOH IRU GHOLYHU\ &DOO -RKQ DW IRU PRUH LQIRUPDWLRQ &DOO -RKQ DW IRU PRUH LQIRUPDWLRQ 2LOILHOG 7UXFNLQJ 5HQWDOV

-RKQ JLEVRQZHOGLQJ #KRWPDLO FRP Â&#x2021; :H\EXUQ 6.

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

Home number: 486-2143 â&#x20AC;˘ Fax: 486-4855 Box 12 Frobisher, SK. S0C 0Y0

merv_and_deb@xplornet.ca

6(59,&(6 /7' Â&#x2021; &DQDGD 8QLWHG 6WDWHV 2LOILHOG 7DQN 7UXFNV Â&#x2021; Â&#x2021; +RW 2LO 7UXFNV Â&#x2021; 3UHVVXUH 7UXFNV Â&#x2021; Â&#x2021; %REFDW *UDYHO 7UXFNV Â&#x2021; %DFNKRH Â&#x2021; Â&#x2021; )UDF :DWHU +HDWHU )UDF 7DQNV Â&#x2021; Â&#x2021; &RPER 9DF 8QLWV Â&#x2021; 1*/ 7UDLOHUV Â&#x2021; &HUWLILFDWH RI 5HFRJQLWLRQ ,53 .HQ %RHWWFKHU 7LP %RHWWFKHU :D\QH 2GJHUV *UDQW $QGHUVRQ (GJDU %HQGWVHQ 0LNH &UDZIRUG 7HUU\ 7RUJXQUXG 0DUYLQ )HUULVV &DUO %RHWWFKHU

6DOHVPDQ 0DQDJHU 'LVSDWFKHU 'LVSDWFKHU 6DIHW\ &RPSOLDQFH 0DQDJHU 6XSHUYLVRU

3KRQH )D[ 32 %R[ $OLGD 6.

+285 6(59,&( WK 6WUHHW (VWHYDQ 6.

2IĂ&#x20AC;FH )D[ 0HO 7UREHUW 2ZQHU 7UDYLV 3DWHUVRQ /HDG 'ULOOHU &RU\ 6LPRQ 'ULOOHU

6HFRU &HUWLĂ&#x20AC;HG ,61HWZRUOG &RPSO\ :RUNV

C24

PIPELINE NEWS March 2013

CN to double crude volume in 2013

CN expects to ship up to 60,000 carloads of crude by rail in 2013, double that of 2012 including heavy oil from Husky in the Lloydminster area. File photo

&XUWLV 1HLV]QHU 93 2SHUDWLRQV :H\EXUQ 6DVNDWFKHZDQ

Lloydminster â&#x20AC;&#x201C; CN plans to double its crude oil volumes from Western Canada to 60,000 carloads in 2013 as producers continue to seek relief from oil price diďŹ&#x20AC;erentials. CN spokesperson Mark Hallman said the growing demand is due to the spread in the crude market between Brent-based pricing and West Texas Intermediate (WTI) pricing â&#x20AC;&#x201C; not because rail is cheaper than pipeline. â&#x20AC;&#x153;For light crudes, rail helps producers access markets that are not pipelineconnected and provides them with waterborne (Brent) netbacks,â&#x20AC;? he said. CN shipped a record of more than 30,000 carloads of crude oil by rail in 2012 including heavy oil, light oil and pure bitumen with each tank car capable of holding approximately 650 barrels of oil. â&#x20AC;&#x153;CN sees continued opportunities for growth in its crude oil business. Rail will continue to supplement existing and new pipelines, not replace pipelines,â&#x20AC;? said Hallman. CNâ&#x20AC;&#x2122;s network reach gives crude producers and marketers access to markets not well served by pipelines today including: U.S Gulf Coast, U.S. Midwest, California, or into Eastern and Western Canada. There are at least 18 transloading facilities for crude oil throughout Western Canada, with Calgary-based players Torq Transloading and Altex Energy Ltd. dominating the logistics sector. Torq, for example, uses a network of trucks and rail to move oil through six terminals for CN and CP including, Unity, Instow, Lloydminster and Bromhead in Saskatchewan and Tiley and Whitecourt in Alberta. The growing customer demand for crude oil shipments helped CN end 2012 with record shipping volumes and earnings that were reported on Jan. 22. Overall revenue was up seven per cent in the ďŹ nal quarter, year over year, including a 13 per cent revenue gain from petroleum and chemicals. â&#x20AC;&#x153;In 2012, we experienced strong growth in commodities related to oil and gas, particularly crude oil, and saw continued market share gains in overseas and domestic intermodal,â&#x20AC;? said Claude Mongeau, president and CEO. É¸ Page C25

QHLV]QHU UHDUGHQ#VDVNWHO QHW

&200(5&,$/

%8,/',1*6 3(5)(&7 )25 7+( 2,/ *$6 ,1'8675<

WK %LHQQLDO

SASKATCHEWAN

OIL & GAS SHOW ([KLELWLRQ *URXQGV Â&#x2021; :H\EXUQ 6.

June 5 & 6, 2013 6KRZ +LJKOLJKWV

â&#x20AC;˘ Awards ceremony â&#x20AC;˘ 24-hour security â&#x20AC;˘ Keynote speakers â&#x20AC;˘ Golf tournament and barbecue â&#x20AC;˘ Excellent show facilities with improved outdoor space and storage â&#x20AC;˘ First class show management â&#x20AC;˘ Social events to broaden exposure â&#x20AC;˘ Complimentary loading and unloading â&#x20AC;˘ Latest products and services on display â&#x20AC;˘ Free passes for attendees

Call today for a FREE quote

60x76-16â&#x20AC;&#x2122; STUD FRAME BUILDING c/w 20x14-R16 OVERHEAD DOOR

$26, 548.35 40X60-18â&#x20AC;&#x2122; POST FRAME BUILDING c/w 16X16-R16 OVERHEAD DOOR

$17, 881.03 0HWDO &ODGGLQJ

7KLQNLQJ ZLQGRZV" 6KRS DQG FRPSDUH

,QVLVW RQ &:' ZLQGRZV DQG GRRUV 39& :LQGRZV 0HWDO FODG ZLQGRZV 3DWLR DQG JDUGHQ GRRUV ,QVXODWHG VWHHO GRRUV

&DOO IRU FRPSDUDWLYH SULFLQJ

:22' &28175< (67(9$1 0&/($1 7,6'$/( 3K Â&#x2021; )D[ Â&#x2021; .HQVLQJWRQ $YHQXH (VWHYDQ +RXUV 0RQ )UL D P S P 6DW D P S P

VISIT OUR WEBSITE: www.wood-country.com

:H\EXUQ 5HYLHZ 3KRWR *UHJ 1LNNHO

1RPLQDWLRQV DUH QRZ EHLQJ DFFHSWHG IRU WKH 6RXWK (DVW 6DVNDWFKHZDQ 2LO 3HUVRQ RI WKH <HDU

Please download form off our website: www.oilshow.ca Email or send to address below

6SRQVRUHG E\ÂŤ

?-A*=:6 714 ;07? *7):, 3 2 %R[ :H\EXUQ 6. 6 + - 7HO )D[ :HE 6LWH ZZZ RLOVKRZ FD (PDLO VN RLOVKRZ#VDVNWHO QHW 6,OYHU 6SRQVRUV

3ODWLQXP 6SRQVRUV *ROG 6SRQVRUV

'(/

&RPPXQLFDWLRQV ,QF

PIPELINE NEWS March 2013

More oil from Western Canada will be shipped by CN rail in 2013 as a way for producers to beneÄŽt from higher Brent-based oil prices and markets not well served by pipelines. File photo

Éş Page C24 â&#x20AC;&#x153;For 2013, CN anticipates continued gradual improvement in the economy and further growth opportunities in intermodal, energy and other resource markets.â&#x20AC;? CN transported just 5,000 carloads of heavy crude, light crude and pure bitumen in 2011 after testing the transportation of crude to various markets in

Buy Today For Your Honda Getaway GET AWAY ON A 2013

2010 when price diďŹ&#x20AC;erentials were not the issue they are today. Alberta bitumen was selling nearly $50 a barrel below the price of WTI in late January 2013 and is expected to cost the province $6 billion in resource royalties in the next 2013-14 budget. CN said it oďŹ&#x20AC;ers important beneďŹ ts to producers of heavy crudes or bitumen in northern Alberta as the only railway that connects heavy oil with existing and new markets. Unlike pipelines, diluent is not required to ship heavy conventional crude or bitumen by rail. â&#x20AC;&#x153;Shipping heavy oil product by rail without diluent is competitive with pipeline economics and provides market ďŹ&#x201A;exibility now and in the future,â&#x20AC;? said Hallman. â&#x20AC;&#x153;Once you are on the rail network, you are not tied to a speciďŹ c market; you can ship to the most proďŹ table market of the day.â&#x20AC;? Rail also allows shippers the ďŹ&#x201A;exibility to start small and increase volumes incrementally as required. CN delivered the ďŹ rst carloads of bitumen from Southern PaciďŹ c Resource Corp.â&#x20AC;&#x2122;s STP-McKay steam assisted gravity drainage project near Fort McMurray to Natchez, Mississippi in early January. Southern PaciďŹ c is trucking bitumen approximately 60 kilometres from the STP-McKay plant gate to the CN Lynton terminal south of Fort McMurray that is operated by Altex Energy. The company expects to receive a signiďŹ cantly improved netback for its bitumen sales from rail as compared to a sale into local markets based on Western Canadian Select pricing. Southern PaciďŹ c is purchasing lower priced diluent from the Gulf Coast and shipping it back to the Lynton terminal by rail and trucking it to the STPMcKay plant for use in the bitumen/water separation process. The company is also trucking some heavy oil from its Senlac, Saskatchewan SAGD site to Torq Transloading facilities in Unity where CN rail delivers it to U.S. markets. Shippers like Southern PaciďŹ c recognize the beneďŹ t of product segregation in individual railcars as it protects the purity and value of the product with no possibility of contaminates being introduced. Another advantage is a low capital outlay for shippers using rail on existing track and roadway infrastructure. Long-term capital or volume commitments are not required to start a rail program. â&#x20AC;&#x153;Rail is a natural complement to pipelines to provide an alternate means to take away product and avoid shutting in production in the event of capacity apportionments or other pipeline system disruption,â&#x20AC;? said Hallman.

0Č?É&#x153; É¤É&#x2022; Ç¸É&#x153;Č?É&#x2018; É´É&#x201E;É¤É&#x2018; Č˝Č?É°É&#x153;

<É¤É&#x153;Č&#x2021;É&#x201E;É&#x201E;É&#x2018; @Ç¸É&#x2018;É&#x153;É´Ńą

TRX420FMD

YOUR PRICE

YOUR DISCOUNT

6,599

GET AWAY ON A 2012

500

GET AWAY ON A 2012

TRX500FMC

TRX680FAD

YOUR PRICE

YOUR DISCOUNT

7,299 $ 1000

10,299 $ 500

Get your ticket to freedom with Hondaâ&#x20AC;&#x2122;s biggest sales event of the year. Itâ&#x20AC;&#x2122;s the perfect time to experience unparalleled Honda innovation, quality and rideability.

Honda Powersports Canada

@HondaPowerCA

Find your GETAWAY at honda.ca/everydaygetaway

(YHU\GD\ *HWDZD\ 6DOHV (YHQW Â´2IIHUÂľ DSSOLHV WR HOLJLEOH UHWDLO SXUFKDVH DJUHHPHQWV IRU D OLPLWHG WLPH ZKLOH VXSSOLHV ODVW 2IIHUV YDOLG RQ VHOHFW QHZ QRW SUHYLRXVO\ UHJLVWHUHG +RQGD SURGXFWV SXUFKDVHG IURP DQ DXWKRUL]HG +RQGD GHDOHU LQ 6DVNDWFKHZDQ Â&#x201A; 2QFH $ <HDU 6DYLQJV UHSUHVHQW D GLVFRXQW GHGXFWHG IURP WKH PDQXIDFWXUHUÂˇV VXJJHVWHG UHWDLO SULFH EHIRUH WD[HV DQG FDQ EH FRPELQHG ZLWK OHDVH Ă&#x20AC; QDQFH RIIHUV Â´<RXU 3ULFHÂľ UHSUHVHQWV D GLVFRXQW GHGXFWHG IURP WKH PDQXIDFWXUHUÂˇ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ÂˇV PDQXDO WKRURXJKO\ +RQGD UHFRPPHQGV WDNLQJ D $79 ULGHU WUDLQLQJ FRXUVH Â´2IIHUVÂľ DUH YDOLG IURP -DQXDU\ WR 0DUFK $OO 2IIHUV DUH VXEMHFW WR FKDQJH H[WHQVLRQ RU FDQFHOODWLRQ ZLWKRXW QRWLFH $OO Â´2IIHUVÂľ YDOLG DW SDUWLFLSDWLQJ +RQGD $79 GHDOHUV 9LVLW KRQGD FD IRU IXOO GHWDLOV (UURUV DQG RPLVVLRQV H[FHSWHG 3ULFHV VSHFLĂ&#x20AC; FDWLRQV VXEMHFW WR FKDQJH ZLWKRXW QRWLFH

3KRQH % WK 6WUHHW Â&#x2021; %R[ Â&#x2021; (VWHYDQ 6. 6 $ : Â&#x2021; )D[

VHUYLFHHVWHYDQ#WKXQGHUFLW\ FD

C25

&DWHULQJ IRU DOO RFFDVLRQV WR $1< ORFDWLRQ

1305 9th Street, Estevan â&#x20AC;˘ 634-6456

Call today for a quote!

C26

PIPELINE NEWS March 2013

Legacy sees improved recovery at Pierson, Manitoba (Daily Oil Bulletin) Calgary â&#x20AC;&#x201C; Legacy Oil + Gas Inc.â&#x20AC;&#x2122;s total capital expenditures on organic opportunities for 2012 were $307.7 million (not including capitalized G&A, corporate ďŹ xed assets or net acquisitions and divestitures)

compared to guidance of $305 million. Legacy realized $600,000 on strategic net asset acquisitions and divestitures. The company drilled 145 (110.4 net) wells in 2012 including 32 (24.7 net) wells in the fourth quarter of 2012, all

&2/' :($7+(5 2)),&( 81,76 EXLOW IRU DOO VHDVRQV

Â&#x2021; Âż EHUJODVV LQVLGH DQG RXW Â&#x2021; 5 ZUDSSHG ZLWK 5 DW GHJUHHV DOO DURXQG Â&#x2021; GRXEOH ODWFK GRRU WRXJKHVW LQ WKH LQGXVWU\ Â&#x2021; &6$ FHUWLÂż HG Â&#x2021; ,QFLQROHW WRLOHW UHDG\ VDWHOOLWHV HWF Â&#x2021; IXOO ZRUNVWDWLRQV Â&#x2021; WKHUPRSDQH ZLQGRZV

1RUHÂV $XWR 7UDLOHU 6DOHV Â&#x2021; .HQPDUH 1' RU

targeting light oil, with a 100 per cent success rate. The total included 14 (10.3 net) horizontal wells in its SpearďŹ sh play at Pierson, Man., and Bottineau County, N.D. in the quarter. Legacy met its 2012 production guid-

ance, averaging 16,301 boepd, an increase of 29 per cent over 2011 average production of 12,650 boepd. Production reached Legacy's forecast 2012 exit rate of 17,900 boepd in November 2012. Forecast production for this year is an average of 17,900 boepd with associated capital expenditures of $290 million. At Pierson, Legacy said it continues to deliver excellent production results in the SpearďŹ sh compared to the previous operator's drilling and these results have signiďŹ cantly inďŹ&#x201A;uenced the type curve used in the 2012 year-end independent engineering report. Undeveloped locations included in the 2012 report have been assigned reserves 25 per cent higher than in the 2011 independent engineering report. Legacy said it has achieved these rates while constraining production to maximize ultimate recovery and believes these achievements will lead to superior long term

&86720 %8,/7 '2*+286(6 EXLOW VSHFLÂż FDOO\ IRU WKH RLOÂż HOG

$Q\ VSHF DQ\ VL]H PDQ\ LQ VWRFN

,) <28 &$1 '5($0 ,7 :( &$1 %8,/' ,7 :H FDQ GHVLJQ DQ\ FXVWRP WUDLOHU \RX FDQ LPDJLQH

9LHZ RXU FRPSOHWH LQYHQWRU\ DW ZZZ QRUHVDXWR FRP

7DNH DGYDQWDJH RI WKH &DQDGLDQ H[FKDQJH UDWH DQG VDYH WKRXVDQGV :H DUH RQO\ PLOHV VRXWK RI WKH ERUGHU

performance, higher per well reserve bookings plus additional locations booked. Similarly, in Bottineau County, undeveloped locations included in the 2012 engineering report have been assigned reserves 25 per cent higher than in the 2011 report even as Legacy has constrained production to maximize ultimate recovery. The total SpearďŹ sh play development drilling inventory of 440 net potential locations (84 per cent unbooked) is based on eight wells per section. Based on other operators' results in the play, Legacy's location count could increase by 50 per cent through downspacing. In addition, the company is evaluating the waterďŹ&#x201A;ood potential in the play and anticipates recovery factors of up to 14 per cent, based on analogous pools. In the Bakken play at Star Valley, Legacy has applied its leading fracture stimulation design developed in Heward to this area with good success. Legacy brought ďŹ ve (four net) wells on production since the start of the fourth quarter of 2012 and these wells have average 30-day initial rates of 200 boepd per well and average 60-day initial rates of 170 boepd. As previously disclosed, Legacy believes the Bakken play boundaries have expanded and has increased its drilling location inventory to more than 50 net wells in Star Valley.

At Taylorton, the company has continued to observe improved waterďŹ&#x201A;ood response in both the original and expanded pilot areas. In the section 29 pilot, oil production has increased 2.6 times, with a corresponding increase in ďŹ&#x201A;uid rate, ďŹ&#x201A;uid level and reduction in water cut. The pilot was expanded into section 28 in July 2012 and this area has already demonstrated a 3.7 times increase in oil production rate. Legacy has moved forward with additional waterďŹ&#x201A;ood pilot expansion into the section to the south. At Heward, the pilot waterďŹ&#x201A;ood project initiated in December 2011 continues to demonstrate waterďŹ&#x201A;ood response as the oil production rate in eight oďŹ&#x20AC;setting wells has increased since the start of the pilot. The wells seeing response have exhibited a 6.4 times increase in oil production since start of injection and the company is rapidly expanding the waterďŹ&#x201A;ood pilot project into three additional sections in the ďŹ rst half of 2013. At Turner Valley, Legacy has continued to evolve drilling and completion practices to optimize both production rate and capital costs. Drilling to-date has targeted inďŹ ll locations testing areas of varying water cut, reservoir pressure, proximity to water injection and three diďŹ&#x20AC;erent stratigraphic horizons. É¸ Page C27

Gravel Trucks and End Dumps

For Sale or Rent.

Weekly, monthly or seasonally. With or without driver

For more information call

K&L Equipment Regina, SK (306)795-7779, (306) 537-2027 or email: ladimer@sasktel.net

PIPELINE NEWS March 2013 Éş Page C26 Horizontal wells in Turner Valley have typically come on production with a high water cut and as load ďŹ&#x201A;uid is recovered, the water cuts decrease and the oil rates increase. This phenomenon has been observed in the 22 horizontal wells drilled by the previous operator and in the wells drilled by Legacy. In turn, the company expects the Turner Valley horizontal wells to produce at stable, low decline rates based on the production proďŹ le demonstrated by both the previously drilled and Legacy drilled wells. The Hartell #6 well, Boyd #1 well and the Herriman #5 well continue to deliver excellent performance. Hartell #6 has produced nearly 64,000 boe in just over 14 months of production, Boyd #1 has produced nearly 60,000 boe in less than 10 months of production and Herriman #5 has produced nearly 33,000 boe in less than four months. All wells continue to be strong producers, averaging 145 boepd, 235 boepd and 250 boepd, respectively. All wells did not reach peak rates until considerably after ďŹ rst production date. Production has continued to trend higher on the remainder of the Turner Valley wells as artiďŹ cial lift optimization has taken place, production run times have improved and recovery of load ďŹ&#x201A;uid has resumed. The most recent example of this characteristic is the Howe #5 well, which has seen production increase 10 fold since start-up to 155 boepd currently and still improving. Legacy said that it replaced 205 per cent of production on a total proved plus probable basis in 2012 as reserves grew seven per cent due mainly to extensions and improved recovery. Estimated 2P reserves as of Dec. 31, 2012 were 94.16 million bbl. of oil equivalent (net of production of 5.87 million boe), up from 87.99 million boe a year earlier. Extensions and improved recovery added 7.21 million boe of proved plus probable reserves, while positive technical revisions and inďŹ ll drilling added 2.13 million boe and 2.93 million boe, respectively. Total proved reserves increased to 55.41 million boe in 2012 from 52.4 million boe at year-end 2011, due mainly to positive technical revisions of 4.62 million boe and three million boe in extensions and improved recovery. Total 2P reserves included 69.32 million bbl. of light and medium oil (38.68 million boe proved), 10.19 million bbl. of natural gas liquids (6.7 million bbl. proved) and 87.9 bcf (60.17 bcf proved) of natural gas. Oil and NGLs accounted for 84 per cent of proved plus probable reserves, unchanged from the previous year. Of the total proved plus probable reserves, 59 per cent (55.41 million boe) are proved and of those 73 per cent (40.63 million boe) are proved developed

C27

producing reserves. The net present value of future net revenue on an after-tax basis, discounted at 10 per cent, is $1.69 billion. The total proved plus probable reserve life index equates to 14.8 years based on fourth quarter 2012 average production. Total proved plus probable ďŹ nding, development and acquisitions costs (including changes in future development costs) were $22.72 per boe. Total capital expenditures on organic opportunities for 2012 were $307.7 million (not including capitalized G&A, corporate ďŹ xed assets or net acquisitions and divestitures) compared to guidance of $305 million. Sproule Associates Limited evaluated the reserves, eďŹ&#x20AC;ective Dec. 31, 2012, in accordance with National Instrument 51-101 â&#x20AC;&#x201C; Standards of Disclosure for Oil and Gas Activities.

Sharing the Energy

Crescent Point is proud to be part of the community crescentpointenergy.com

081'/( *5281' 3/$7(

3DWHQWHG DQG &6$ 8/ $SSURYHG

,QQRYDWLYH QHZ JURXQGLQJ V\VWHP IRU RLO ULJV JHQHUDWRUV DQG FRQVWUXFWLRQ VKDFNV :LWK WKH 0XQGOH *URXQG 3ODWH WKHUH LV QR QHHG WR VWUXJJOH WU\LQJ WR JHW D JURXQG URG SRXQGHG LQWR KDUG HDUWK 7KHUHÂˇV QR QHHG IRU VW FDOO DQG YHU\ OLWWOH JURXQG GLVWXUEDQFH 7KH SODWH LV HDV\ WR LQVWDOO DQG UHPRYH

58 *5281'(' 081'/( $1&+256

*HUU\ 7XUWD YLEH #KRWPDLO FRP

7HUU\ 0XQGOH WFPXQGOH#JPDLO FRP

C28

PIPELINE NEWS March 2013

Southern PaciĂ&#x20AC;c to step up production Calgaryâ&#x20AC;&#x201C; Bluer skies are ahead for Southern PaciďŹ c Resource Corporation this year with its cloudy last ďŹ scal quarter in the rear-view mirror. The Calgary-based company is in the process of adding signiďŹ cant production growth from its thermal projects at STP-McKay, which is located 45 northwest of Fort McMurray and STP-Senlac near Unity.

306-596-4003

www.jaywest.ca

Company president and CEO Byron Lutes tackled past and future performance issues during a Feb. 7 conference call to discuss ďŹ nancial and operational results for the quarter ending Dec. 31 2012. â&#x20AC;&#x153;It was not a great quarter. Our cash ďŹ&#x201A;ow was down and our Senlac production was at the low point of it cycle,â&#x20AC;? said Lutes. â&#x20AC;&#x153;At McKay, weâ&#x20AC;&#x2122;re steadily ramping up, but we always knew it would take some time to reach â&#x20AC;&#x2DC;impactfulâ&#x20AC;&#x2122; volumes. â&#x20AC;&#x153;The good news is we are in good shape ďŹ nancially, and we have positioned ourselves nicely for some transformational quarters as we move into 2013 and 2014. â&#x20AC;&#x153;There are several interesting things to watch for as the year progresses.â&#x20AC;? These include the ongoing Phase 1 production ramp-up at STP-McKay and the anticipated regulatory approvals for Phase 1 expansion and Phase 2 later this year. The two expansion projects will boost bitumen capacity to 36,000 barrels per day. New volumes at STP-Senlac will also start up in the next quarter, while the beneďŹ ts of Southern PaciďŹ câ&#x20AC;&#x2122;s rail marketing strategy will be realized in the current quarter. Production at McKay reached nearly 2,000 bpd by Feb. 7 as production is ramping up toward the plant capacity of 12,000 bpd in 2014. The ďŹ rst well pairs were converted to production in late October 2012 to begin a 12-month to 18-month ramp-up process. â&#x20AC;&#x153;The facility is running extremely well and we are delivering steam to the well pairs at a very high 99 per cent load factor,â&#x20AC;? said Lutes. â&#x20AC;&#x153;Of the 12 well pairs that we have drilled to date, eight of them are on a production mode, meaning they are either on full SAGD or semi-SAGD. Four remain in various stages of circulation and warm-up mode. â&#x20AC;&#x153;Once the well has been converted into SAGD mode, we have been able to establish very predictable production patterns and the well pairs are developing.â&#x20AC;? The main hiccup in the quarter was a need to shut down one well in January to repair a downhole liner. â&#x20AC;&#x153;We remain excited about continuing to steadily develop our project,â&#x20AC;? said Lutes. É¸ Page C29

OilĂ&#x20AC;eld Electrical Construction & Service â&#x20AC;˘ Instrumentation â&#x20AC;˘ Motor Sales, Rewinds & Repairs

Well Service â&#x20AC;˘ Cement â&#x20AC;˘ Acid â&#x20AC;˘ Fracturing â&#x20AC;˘ Coil Tubing â&#x20AC;˘ N2 â&#x20AC;˘ CO2 â&#x20AC;˘ Industrial +LJKZD\ (DVW (VWHYDQ 3KRQH )D[

Estevan, SK: Branch OfĂ&#x20AC;ce 306-634-5617 Lloydminster, SK 306-825-3363 Kindersley, SK 306-463-6462 Swift Current, SK 306-773-5626

PIPELINE NEWS March 2013 Éş Page C28 At STP-Senlac, Southern PaciďŹ c has just completed the drilling of Pad K and the ďŹ rst well in that three well pair began steaming in mid-January with the others to follow suit. â&#x20AC;&#x153;We expect new production to occur sometime in March after a six to eight week warm up period,â&#x20AC;? said Lutes. â&#x20AC;&#x153;With respect to the last quarter, we are currently in the low production rate phase of a cycle at Senlac thatâ&#x20AC;&#x2122;s been going on for over 15 years. â&#x20AC;&#x153;With the new wells warming up, we will soon enter a cycle of much higher rates which will last for about six months, then will start to decline again.â&#x20AC;? Southern PaciďŹ c expects to spud and drill new wells this fall with preparations already underway for the next phase at Senlac. The company is beneďŹ ting ďŹ nancially from its rail marketing strategy to narrow the price diďŹ&#x20AC;erentials between Western Canadian Select (WCS) and U.S. Gulf Coast pricing for oil. Southern PaciďŹ c began trucking diluted bitumen, called dilbit, which is produced at STP-McKay, to the Lynton rail terminal south of Fort McMurray for shipment to Natchez, Miss. on Jan. 1. On the back haul, rail cars are delivering diluents purchased in the Gulf

C29

Coast for use in the STP-McKay plant. The company is also using rail facilities in Unity to ship about 1,500 bpd from Senlac to U.S. markets with the remainder of oil by being shipped by pipeline. The company doesnâ&#x20AC;&#x2122;t have ďŹ rm access to a loading terminal or railcars in Unity, so they are selling the volumes to a marketing ďŹ rm and sharing the upside spread between the WCS diďŹ&#x20AC;erentials and U.S. Gulf Coast pricing. â&#x20AC;&#x153;Even so, we are expecting an uplift of about $8 a barrel in the entire blend at Senlac over the next several months while these WCS diďŹ&#x20AC;erentials remain high,â&#x20AC;? said Lutes. Lutes said the rail marketing system is working very well, with all the facilities including rail cars, permits and tracking systems in place. â&#x20AC;&#x153;On the netback perspective, we have been very pleased with our pricing to date,â&#x20AC;? said Lutes. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;ve completed three, one-month contracts with three diďŹ&#x20AC;erent reďŹ neries in the U.S. Gulf Coast. We have no middlemen in between us. â&#x20AC;&#x153;Our pricing is reďŹ&#x201A;ective of typical U.S. Gulf Coast pricing. Weâ&#x20AC;&#x2122;ve been able to compete head-on with the other imports that have been arriving from oďŹ&#x20AC;shore. â&#x20AC;&#x153;Over time, we may look at an arrangement longer than one month, but we have satisďŹ ed ourselves to date that we have achieved our marketing goals on this marketing arrangement,â&#x20AC;? added Lutes.

Íť 6$/(6 Â&#x2021; 3$576 Â&#x2021; 6(59,&( Â&#x2021; /($6,1*

(VWHYDQ Â&#x2021; 6DVNDWRRQ Â&#x2021; 5HJLQD Â&#x2021; :LQQLSHJ Â&#x2021; %UDQGRQ

A familiar sight

A Site Energy crew was working on a Ĺ&#x2021;ow line just a few miles north of their CarnduÄŤ shop in early February. Photo by Brian Zinchuk

(VFDQD 6WUHHW (VWHYDQ 6N

3KRQH 7ROO )UHH

&2,/ :(// 6(59,&(

(VVHQWLDO &RLO :HOO 6HUYLFH FXUUHQWO\ RSHUDWHV LQ $OEHUWD 6DVNDWFKHZDQ DQG 0DQLWRED )URP RXU VKRS LQ :H\EXUQ ZH SURYLGH SURGXFWLRQ FOHDQRXWV GULOOLQJ RXW RI SDFNHUV PHPRU\ DQG UHDO WLPH ORJJLQJ DV ZHOO DV ILVKLQJ :H DOVR SURYLGH QLWURJHQ DQG IOXLG SXPSLQJ VHUYLFHV (VVHQWLDO FDQ SURYLGH VWDWH RI WKH DUW FRLO XQLWV ZLWK Âľ Âľ Âľ DQG Âľ FRLO (VVHQWLDO DOVR KDV Âľ WR RI ( /LQH &RLO WR SURYLGH UHDO WLPH ORJJLQJ DQG SHUIRUDWLQJ VHUYLFHV

&ODVV ,, %ORZRXW SUHYHQWHUV LQFOXGLQJ UHPRWH $FFXPXODWRUV DQG &ODVV ,,, FDSDELOLWLHV

(VVHQWLDO &RLO :HOO 6HUYLFH FDQ EH UHDFKHG DW RXU RIILFH LQ :H\EXUQ $W RU 7ROO )UHH DW

C30

PIPELINE NEWS March 2013

BlackPearl defers some drilling due to heavy oil differential (Daily Oil Bulletin) Calgary â&#x20AC;&#x201C; BlackPearl Resources Inc. said Feb. 19 it is deferring some of its ďŹ rst-quarter capital spending until later this year because of wide heavy oil price diďŹ&#x20AC;erentials that are signiďŹ cantly lowering the companyâ&#x20AC;&#x2122;s wellhead price and budgeted revenues. The company has elected to defer additional drilling of the second and third phases at Mooney until heavy oil prices improve, so instead of spending between $45 million and $50 million, it now plans to spend $30 million to $35 million during the ďŹ rst three

months of the year. The major components of BlackPearlâ&#x20AC;&#x2122;s ďŹ rst-quarter capital spending will be the drilling of 11 wells at Onion Lake, drilling the second well pair at Blackrod and continuing with detailed engineering design work on the ďŹ rst phase of its commercial development, and pipeline and road infrastructure at Mooney. BlackPearl said it is continuing to see positive response from the ASP ďŹ&#x201A;ood at Mooney, with fourth-quarter production from the Phase 1 ďŹ&#x201A;ood area averaging 1,924 boepd, a 128 per cent increase from the

third quarter. As a result of continued development of the non-ďŹ&#x201A;ood area in phases two and three, total production from the Mooney area was 3,329 boepd during the fourth quarter. The company expects to expand the ASP ďŹ&#x201A;ood to Phase 2 in late 2013 or early 2014. Fourth-quarter 2012 production of 9,067 boepd increased four per cent from fourth-quarter 2011. Full-year average production rose to 9,366 boepd in 2012, a 23 per cent increase from 2011. A decrease in fourth-quarter volumes

(QHUJ\ 6HUYLFHV /WG

$// 6DIHW\ 7UDLQLQJ ZLOO EH KHOG LQ WKH 1257+ &DUVRQ \DUG LQ WKH Â´6DIHW\ 7UDLQLQJÂľ %XLOGLQJ XQOHVV RWKHUZLVH QRWHG

12: $9$,/$%/( )LUHĂ&#x20AC;JKWLQJ 7UDLQLQJ :LOO WUDLQ DW \RXU ORFDWLRQ E\ DSSRLQWPHQW

367 ,53 7UDLQLQJ $YDLODEOH E\ DSSRLQWPHQW

$OO FRXUVHV EHJLQ DW DP XQOHVV RWKHUZLVH QRWHG 3UH UHJLVWUDWLRQ LV UHTXLUHG IRU DOO FRXUVHV &DQFHOODWLRQ QRWLFH LV UHTXLUHG +UV LQ DGYDQFH $OO QR VKRZV ZLOO EH ELOOHG IRU D SRUWLRQ RI WKH FRXUVH

3LSHOLQH &RQVWUXFWLRQ $YDLODEOH E\ DSSRLQWPHQW

0DUFK

6XQ 0RQ 7XH :HG 7KX )UL 6DW

+ 6 /DPSPDQ

*OREDO *URXQG 'LVWXUEDQFH /DPSPDQ

&RQILQHG 6SDFH /DPSPDQ

)DOO 3URWHFWLRQ /DPSPDQ

5LJJLQJ +RLVWLQJ /DPSPDQ

+ 6 /DPSPDQ

*OREDO *URXQG 'LVWXUEDQFH /DPSPDQ

)LUH )LJKWLQJ /DPSPDQ

&RQILQHG 6SDFH /DPSPDQ 5LJJLQJ +RLVWLQJ /DPSPDQ /HJLRQ

)LUVWDLG /DPSPDQ

)LUVWDLG /DPSPDQ &RQÂˇW

+ 6 /DPSPDQ

*RRG )ULGD\

$SULO

compared to those of the third quarter is attributable to the natural production decline from a number of BlackPearlâ&#x20AC;&#x2122;s longest producing wells in the Onion Lake area, said the company. â&#x20AC;&#x153;In general, these wells have been excellent producers with recoveries in excess of 10 per cent of oil in place, which is higher than we would typically expect from cold ďŹ&#x201A;ow heavy oil wells,â&#x20AC;? it said. â&#x20AC;&#x153;The Onion Lake ďŹ eld is a maturing area with over 300 wells drilled into portions of the ďŹ eld over the last seven years and some of these wells are nearing the end of their productive life. It is our intention to continue to drill conventional wells at Onion Lake to further delineate and develop the ďŹ eld in new areas until we transition to thermal development. SpeciďŹ cally, we have had recent success delineating and extending the ďŹ eld to the south.â&#x20AC;? The company drilled 11 wells in the Onion Lake area during the ďŹ rst quarter of 2013. BlackPearl continues to experiment with diďŹ&#x20AC;erent operating procedures to improve

its understanding of well operating performance at Blackrod, after reaching commercial production rates earlier in 2012. Information gained from the current SAGD pilot well-pair operations will be incorporated in the operation of the second well pair, which will be drilled in the ďŹ rst quarter. The company has begun the detailed engineering design work on the ďŹ rst phase of the commercial development of the property. In the last four years the company has commercialized two (the Mooney ASP ďŹ&#x201A;ood and Onion Lake primary production) of its four heavy oil and oilsands projects on three core project areas. The two projects remaining to develop â&#x20AC;&#x201C; Onion Lake SAGD and Blackrod SAGD â&#x20AC;&#x201C; are much more signiďŹ cant and more expensive to develop. Mooney and Onion Lake primary production have provided the nearterm growth and cash ďŹ&#x201A;ow needed to tackle the two SAGD projects, said the company. Production from the ďŹ rst phase of the ASP ďŹ&#x201A;ood at Mooney has

started to ramp up over the past 18 months and there are up to four additional phases with ďŹ&#x201A;ood potential. While the recent production declines at Onion Lake have occurred sooner than forecast, the average well achieves above average economic returns compared to many oil plays in Western Canada, it said. The recent declines from some of the older Onion Lake wells have come from wells that have achieved more than 10 per cent recovery, which is top decile performance for heavy oil wells. â&#x20AC;&#x153;We fell short of our year-end production guidance of 10,000 boepd as a result of these production declines,â&#x20AC;? the company reported. â&#x20AC;&#x153;We will continue to drill additional primary heavy oil wells at Onion Lake in 2013, to mitigate some of the production declines from existing wells, when heavy oil price diďŹ&#x20AC;erentials recover to more normal levels.â&#x20AC;? The company anticipates heavy oil diďŹ&#x20AC;erentials will tighten later in 2013 as several reďŹ neries come back online and certain pipeline systems are debottlenecked.

Crude Oil & Saltwater Transfers

6XQ 0RQ 7XH :HG 7KX )UL 6DW

&RQILQHG 6SDFH /DPSPDQ

)DOO 3URWHFWLRQ /DPSPDQ

Hot Fresh Water

)LUVWDLG /DPSPDQ

)LUVWDLG /DPSPDQ &RQÂˇW

+ 6 /DPSPDQ

*OREDO *URXQG 'LVWXUEDQFH /DPSPDQ

)LUH ([WLQJXLVKHU /DPSPDQ

&RQILQHG 6SDFH /DPSPDQ

)DOO 3URWHFWLRQ /DPSPDQ

+ 6 *OREDO /DPSPDQ *URXQG 'LVWXUEDQFH /DPSPDQ

)LUVWDLG /DPSPDQ

)LUVWDLG /DPSPDQ &RQÂˇW 5LJJLQJ +RLVWLQJ /DPSPDQ /(*,21

)DOO 3URWHFWLRQ /DPSPDQ

7R 5HJLVWHU &DOO 7ULFLD # (PDLO WVWLQVRQ#Ă LQWHQHUJ\ FRP

Access To Fresh Water Available Freshwater Hauling Service Work

PIPELINE NEWS March 2013

C31

* Formerly â&#x20AC;&#x153;Three Star Environmentalâ&#x20AC;?

* Environmental Protection Plans * Impact Assessments * Pre-Site Assessments * Environmental Audits & Assessments * Well Site & Battery Abandonments * Drilling Waste Management * Pre/Post Water Well Testing * EM Surveying * GPS Mapping

306-453-4475 FAX: 306-453-4476 BOX 40, CARLYLE, SASK. S0C 0R0 www.evergreenenviro.ca

Fire wipes out shop, trucks A devastaĆ&#x;ng ÄŽre wiped out the shop and soon-to-be-moved-into oÄ¸ce for R. French Transport in Forget on Thursday, Jan. 31. The blaze broke out at 5:05 p.m. It destroyed four semis, one backhoe, a payloader, and one trailer loaded with oil. There were a few workers in the building at the Ć&#x;me, but they all got out safely. The remains were sĆ&#x;ll smouldering several days later. Photo by Brian Zinchuk

Kenosee Lake, SK

Todd Davies 577-7437 Brok Davies 575-9997 24/7 Dispatch 577-7437

â&#x20AC;˘ Precision Excavating â&#x20AC;˘ Trenching â&#x20AC;˘ Steam Washing â&#x20AC;˘ Pile Holes â&#x20AC;˘ Daylighting â&#x20AC;˘ Steaming Provincial Weight Restriction Compliant

4XDOLW\ 3RVW )UDPH %XLOGLQJV

5RWR 0&66

3DQRUDPLF

*22'21 %8,/',1*6

12: 2))(5

3DQRUDPLF

*UDLQ 6WRUDJH

025( 7+$1 0(5/2 62/' 7+528*+287 &$1$'$ 6,1&(

0(5/2 5('(),1(6 67$1'$5'6 7KH RQO\ WHOHKDQGOHU EXLOW DQG GHVLJQHG WR RIIHU UHDO EXFNHW SHUIRUPDQFH 'LVFRYHU WKH DPD]LQJ XVH DQG YHUVDWLOLW\ RI WKH IURQWDO UHDFK ,QFUHDVH RI \RXU SURGXFWLYLW\ E\ WR ,QFUHGLEOH SXOOLQJ DQG SXVKLQJ FDSDFLW\ 'UDVWLF GLHVHO VDYLQJV XS WR

0DFKLQH 6WRUDJH

*DXJH 0HWDO &ODGGLQJ 7KLFNHU +HDYLHU DQG +LJKHU 4XDOLW\ /HDGLQJ 7KH 3RVW )UDPH ,QGXVWU\

&DOYLQJ %DUQV 6KHOWHUV

ZZZ JRRGRQ FRP <RXU 0HUOR 'HDOHU

$VVLQLERLD 6. %R[ +LJKZD\ :HVW (VWHYDQ 6. %R[ .HQVLQJWRQ $YHQXH 3DQJPDQ 6. %R[ 0HUJHQV 6WUHHW 5DGYLOOH 6. %R[ +LJKZD\ 6RXWK :H\EXUQ 6. 6WUHHW 1(

&RPPHUFLDO %XLOGLQJV

$QG 0XFK 0RUH

)RU DOO RI \RXU )DUP &RPPHUFLDO ,QGXVWULDO 1HHGV

C32

PIPELINE NEWS March 2013

D&D OILFIELD RENTALS info@ddoil.net www.ddoil.net On December 1, 2012, D&D Oilfield Rentals purchased Deranway Enterprises Ltd., an acquisition that involved over 200 pieces of rental equipment, and will allow D&D to expand to meet the growing needs of their customers. â&#x20AC;&#x153;I think itâ&#x20AC;&#x2122;s a great acquisition,â&#x20AC;? says Ken Goldade, General Manager, D&D Oilfield Rentals. â&#x20AC;&#x153;We are adding both quality and volume to our inventory, while, at the same time, increasing the number of qualified and knowledge people in our company.â&#x20AC;? This inventory includes over 200 pieces of equipment including: t XFMM TJUF USBJMFST t 8JODI USBDUPST BJS SJEF USBJMFST t -BWBUPSJFT t (FOFSBUPST t -PBEFST â&#x20AC;&#x153;We now have everything under one roof so D&D can be a one stop shop for construction, pipeline, forestry, and oilfield companies looking to get everything they are looking for in one place,â&#x20AC;? Goldade says. Additionally, Deranwayâ&#x20AC;&#x2122;s yard, located just west of Edmonton, in Acheson, AB will remain in use, making it even easier for D&D to reach companies in north western Alberta while continuing to provide superior service to their existing customers throughout Alberta, British Columbia, Manitoba, Saskatchewan, and, most recently, North Dakota. Contact us to find out how D&D can be your one-stop shop!

Redcliff, AB (Head Office)

Calgary, AB (Sales)

Nisku, AB

Lloydminster, AB

Acheson, AB

Swift Current, SK

Weyburn, SK

PIPELINE NEWS March 2013

C33

Marquee lowers budget for Michichi and Lloydminster Marquee Energy Ltd.â&#x20AC;&#x2122;s $26 million capital budget for 2013 â&#x20AC;&#x201C; down from last yearâ&#x20AC;&#x2122;s $38 million â&#x20AC;&#x201C; will focus on continued development and delineation of oil plays at Michichi and Lloydminster. About $22 million, or 80 per cent of the budget, is allocated to the Michichi area where Marquee will drill seven horizontal wells, with the remainder spent on acquisitions and infrastructure. Another $2 million, or seven per cent, will be allocated to Lloydminster, where the company will drill at least three wells and continue to identify new areas for growth. The remainder will go towards land acquisitions. Average production for 2013 is estimated to be 2,400 boepd -- 64 per cent oil and liquids (currently 62 per cent oil and NGLs). This yearâ&#x20AC;&#x2122;s estimated exit rate of 2,700 boepd (65 per cent oil and NGLs) represents a 25 per cent increase over average sales of 2,150 boepd in December 2012. The majority of this yearâ&#x20AC;&#x2122;s capital program will be ďŹ nanced by cash ďŹ&#x201A;ow from operations, with the remaining from expected proceeds from non-core dispositions. The capital program is based on average oil prices of C$90 per bbl for West Texas Intermediate and $59

per bbl Western Canada Select and $3.25 AECO for natural gas. Marquee said results for all three wells in its fourth-quarter horizontal drilling program at Michichi exceeded expectations. â&#x20AC;&#x153;These results, along with ownership in facilities and infrastructure at Michichi, have enhanced the already strong economics of Marqueeâ&#x20AC;&#x2122;s Detrital and BanďŹ&#x20AC; oil plays,â&#x20AC;? it said. Marquee said it continues to be the most active driller on Michichi, an emerging light oil play, where it is beginning to realize improvements in capital cost eďŹ&#x192;ciency and productivity thanks to operation reďŹ nements begun in late third-quarter 2012. Since July 2011, the company has drilled 10 of the more than 30 horizontal wells licensed in the area, and spudded three horizontal wells there during fourth-quarter 2012. The ďŹ rst well averaged more than 200 boepd over an initial ďŹ ve-day test period and achieved an IP30 of 141 boepd (90 per cent oil and NGLs). Testing of the second and third wells was limited as they were drilled oďŹ&#x20AC; an existing multi-well pad site. The second well produced greater than 200 boepd on a one-day test and the third well produced 173 boepd during a three-day test.

Both wells are expected to be on production by mid-February. Marqueeâ&#x20AC;&#x2122;s wholly owned gas plant, acquired in October 2012, has been expanded and upgraded to recover associated NGLs. The plant started up Feb. 1 and is now capable of processing more than eight mmcf/d. More than half of Marqueeâ&#x20AC;&#x2122;s Michichi volumes are now tied into company-owned infrastructure, which is expected to reduce gas processing by as much as 30 per cent. The company cut on stream times by approximately 50 per cent

to an average of 45 days on the three most recent horizontal wells. At Lloydminster, Marquee achieved record monthly output of around 650 bpd in December. The company will begin shipping oil by rail from Lloydminster this month. This is expected to improve netbacks on the railed volumes by more than $5 per bbl. Marquee has hedged more than half its current oil production for 2013 at an average price of C$91.75 per bbl. WTI and more than a third of its current gas volumes at $3.40 AECO.

Day

Construction Ltd. Lease Construction Lease Restoration â&#x20AC;˘ Mulching Carnduff, SK.

Phone: (306) 482-3244 :H DUH KHUH IRU \RX

,1'8675,$/ $872027,9( 352'8&76

7+ 675((7 (67(9$1

C34

PIPELINE NEWS March 2013

Winter work This rig was working near Oxbow in early February. A pipeline crew was working nearby. Photo by Brian Zinchuk

25 &&2 LĂ&#x20AC;ILHHGG W U H &

,61

&R6P DQG + (S ,61 O\ : RUN 55HHJJLV LVWWH H UHG V UHG

$VVRFLDWHG ZLWK &DUQGXII (OHFWULF /WG

4XDOLW\ 'LUHFWLRQDO %RULQJ 6HUYLQJ :HVWHUQ &DQDGD +'' 5,*6 $9$,/$%/( )520 OEV WR OEV OEV 38// %$&. 7+5867 WR +2/( 6,=(6 5$1*,1* )520 OEV ,1&+ 72 ,1&+ 75(1&+/(66 :DWHU 7UXFN 7(&+12/2*< VXSSOLHG ZLWK 6$9( 21 &/($1 83 :DWHU 7UXFN 6XSSOLHG DOO %RUH 8QLWV ZLWK $OO %RUH 8QLWV

&$// 72 &$// 72 %22. <285 %22. <285 1(;7 %25(

1(;7 %25( 2IĂ&#x20AC;FH 2IILFH 5RE 6NXFH

<285 :25. %227 +($'48$57(56

521 6 7+( :25. :($5 6725( /7' 1' 67 :(<%851

0$,1 &$5/</(

7+ 67 (67(9$1

T. K. Trailer Sales Manor, Sask. Ph: 1-306-448-2260; Cell: 1-306-575-7116

www.pjtrailers.com

Deckovers

Goosenecks 2 & 3 Axle (various weights)

8â&#x20AC;? I-Beam Frame

96â&#x20AC;? x 14â&#x20AC;&#x2122;

Dumps

60â&#x20AC;? x 8/10â&#x20AC;&#x2122;

78â&#x20AC;? x 10/12/14â&#x20AC;&#x2122;

Tilts Makes Loading Easy!

Utilities A variety to choose from

Car Haulers

â&#x20AC;˘ COMMERCIAL â&#x20AC;˘ FARM â&#x20AC;˘ OILFIELD â&#x20AC;˘ PERSONAL

We Now Sell LLIGHTNING IGHTNING CARGO TRAILERS!

All Aluminum

PIPELINE NEWS March 2013

C35

Seismic program begins on Saturnâ&#x20AC;&#x2122;s SK properties Saturn Minerals Inc. has started the ďŹ rst phase of its 2013 seismic acquisition program on the Little Swan (EP-71) and Bannock Creek (EP-72) properties in eastern Saskatchewan. Calgary-based Geostrata Resources Inc. has been retained for the acquisition of up to 92 kilometres of 2D proprietary seismic data on Saturn's properties. A crew has been mobilized and line cutting was scheduled to begin mid-February. At Little Swan, the seismic survey will cover the northern portions of the permit and has been designed to cover/test the most signiďŹ cant largescale, deep-basin anomalies discovered on the property by way of airborne gravity and magnetic survey in late 2012. These large deep-basin anomalies indicate the presence of horst-and-graben structures within the Precambrian basement rocks, constituting po-

tential â&#x20AC;&#x153;kitchenâ&#x20AC;? settings for the generation of oil from Devonian and older oil source rocks, Saturn said. The seismic survey will identify potential structural and stratigraphic traps over these deepbasin anomalies where oil may have been trapped. The most promising traps identiďŹ ed in the survey will form the drill targets of exploration wells to be drilled following the survey. The seismic survey has been designed and is being managed by the executive and exploration team of Vector Exploration Corp., in close conjunction with the companyâ&#x20AC;&#x2122;s vice-president of exploration, Krzysztof Mastalerz. From 2006 through 2012, the exploration team of Vector drilled 70 successful exploration and development wells along the Saskatchewan-Manitoba border based on acquired seismic data and interpretation. The seismic survey is expected to take up to six

weeks, with processing being undertaken simultaneously with data acquisition. EP-71, the Little Swan property, is 253,920 acres in size and EP-72, the Bannock Creek property, is 122,880 acres in size, and cumulatively represents some of the largest oil and gas permits in Saskatchewan. "This seismic survey is the ďŹ rst genuine oil and gas focused exploration work in this part of Saskatchewan," said Stan Szary, president and CEO of Saturn. "The data acquired will be proprietary and a major exploration asset when measured against the oil seeps and oil source rock discoveries weâ&#x20AC;&#x2122;ve made in the past 18 months. Weâ&#x20AC;&#x2122;re extremely happy to be working with the team at Vector, who have understood the structure and upside of this play from day one, and have a proven track record of identifying and drilling successful prospects."

RESOURCE GuĂ&#x2014;de . 6$)(7<

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

$ 'LYLVLRQ RI . 67($0,1* /7'

Lloyd Lavigne â&#x20AC;˘ Kirk Clarkson

3 2 %R[ 0DUHQJR 6. 6 / .

Owners/Managers 6506 - 50th Avenue Lloydminster, AB

Phone: (780) 875-6880

5315 - 37th Street Provost, AB T0B 3S0

2IĂ&#x20AC;FH &HOO

Phone: (780) 753-6449

Fax: (780) 875-7076

24 Hour Service Specializing in Industrial & Oilfield Motors

. 6$)(7<

JUKROPHVIDUPV#JPDLO FRP

0HGLF 8QLW

516 Nesbitt Drive, Estevan â&#x20AC;˘ 634-2631 (Behind Power Dodge)

Your best choice for accommodationss in Carlyle, Sk. â&#x20AC;˘ Full kitchen and upscale extended stay â&#x20AC;˘ Complimentary continental hot breakfast â&#x20AC;˘ Free high speed internet â&#x20AC;˘ Meeting room

Proud to provide selection, quality and excellence to our customers.

RICK CORMIER Manager

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

Bus: (306) 453-6111 Cell: (306) 577-8833 Fax: (306) 453-6102 ttorq@hotmail.com

Reservations: 306-453-2686

Cordell Janssen District Manager Downhole

LECLAIR TRANSPORT General OilďŹ eld Hauling

Lyle Leclair Cell: 306-421-7060

93 Panteluk Street, Kensington Avenue N Estevan, Saskatchewan PHONE: 306-634-8828 â&#x20AC;˘ FAX: 306-634-7747 cordell.janssen@nov.com â&#x20AC;˘ www.nov.com

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

7LPEHU $FFHVV 0DWV Âˇ [ Âˇ IXOO Âľ WKLFN ,Q VWRFN PDWV RQO\

&DOO

2P[VPah # " !%# '! %

2Pa[h[T " % #$" !$""

fff \X[[T]]Xd\SXaTRcX^]P[ R^\ 7^aXi^]cP[ Â&#x2019; 3XaTRcX^]P[ Â&#x2019; FT[[ <^]Xc^aX]V

C36

PIPELINE NEWS March 2013

CAREER GuĂ&#x2014;de

Blue skies, white snow

A Goudy Transport truck could be seen at Crescent Point's Heward baĆŠery on Feb. 9. Photo by Brian Zinchuk

7XUQEXOO ([FDYDWLQJ LV ORRNLQJ IRU D

:HOGHU <DUG 3HUVRQ

7KH SULPDU\ GXWLHV ZLOO EH GRLQJ JHQHUDO ZHOGLQJ DQG IDEULFDWLQJ 6HFRQGDU\ GXWLHV ZLOO EH DV D KHDY\ HTXLSPHQW RSHUDWRU DVVLVWLQJ ZLWK ORDGLQJ DQG XQORDGLQJ GXWLHV DW RXU PDLQ \DUG Â&#x2021; $SSOLFDQWV PXVW KDYH ZHOGLQJ DQG FXWWLQJ VNLOOV DEOH WR GHVLJQ DQG IDEULFDWH ZLWK VWHHO Â&#x2021; $UF DQG 0,* ZHOGLQJ H[SHULHQFH Â&#x2021; 0XVW KDYH VRPH H[SHULHQFH ZLWK KHDY\ HTXLSPHQW ZKHHO ORDGHUV EREFDW IRUNOLIWV Â&#x2021; +DYH D YDOLG FODVV OLFHQVH PLQLPXP SUHIHUHQFH JLYHQ WR DSSOLFDQWV ZLWK YDOLG VDIHW\ WLFNHWV :H SURYLGH FRPSHWLWLYH ZDJHV DQG EHQHĂ&#x20AC;WV SDFNDJH

(PDLO GDYH WXUQEXOOH[FDYDWLQJ#VDVNWHO QHW 2U )D[ WR

()'

" # # # # #

% !

# " "# % !

& ' # ' ' #

' ' "# ' ' " % #

# ! # "

" # # $ !!!$ $

! $ (.+-) ,+/&,/+0

ELECTRICIANS & INSTRUMENT TECHNICIANS Carlyle and Estevan, SK

South East Electric LTD. is looking for trade certified Electricians and Instrument Technicians to provide a complete range of electrical services to our oilfield, commercial, agricultural and residential customers. Strong troubleshooting skills, excellent communication, customer service skills and the ability to work independently and well under pressure are essential. We offer competitive wages and benefits. Valid drivers license is required. Interested candidates should submit their resume via email to the attention of info@southeastelectricltd.com no later than February 22, 2013

Rig releases and metres drilled decline in 2012 Operators drilled 11,070 wells across Canada in 2012, oďŹ&#x20AC; 14 per cent from 12,869 rig releases in the prior year. Last yearâ&#x20AC;&#x2122;s ďŹ nal drill count was the second lowest in the past decade, as the shift to longer horizontal wells and constrained natural gas drilling continued to shape industry. As a result, overall metres drilled declined by 6.73 per cent to 22.25 million metres from 23.85 million metres in 2011. In Western and Northern Canada, the average depth/length per well was a record 2,000 metres last year, up about eight per cent over 2011â&#x20AC;&#x2122;s 1,855 metres. The average depth/length of development wells drilled in 2012 (1,951 metres) was more than twice the average 10 years earlier. In 2002, the average length of a development hole was 964 metres. During 2012, operators continued to emphasize development drilling, with 19.28 million metres drilled across the country, down from 20.45 million metres in 2011. The biggest growth areas for PSAC zones â&#x20AC;&#x201C; ranked by increased metres drilled, excluding test wells -- were in northeastern Alberta (up 591,650 metres year-over-year), Manitoba (up 91,018 metres) and Eastern Saskatchewan (up 55,600 metres). On a percentage increase basis, Northeastern Alberta led the way with a 40.63 per cent increase to 2.05 million metres, followed by the Foothills (up 25.96 per cent to 57,043 metres) and Manitoba (up 8.57 per cent to 1.15 million metres). Overall, industry drilled 1,245 exploratory wells in Canada last year, oďŹ&#x20AC; about 19 per cent from 1,543 the prior year and down 25 per cent from 2010 when 1,661 exploratory wells

were rig released. On a year-over-year basis, exploratory drilling declined in all four western provinces. Many of the wells drilled last year are still under conďŹ dential status, but of those reporting status, about 79 per cent were listed as oil or bitumen wells. That compared to 69 per cent listed as oil or bitumen wells in 2011. Only 12 per cent of the wells with a reporting status in 2012 were listed as gas wells, down from about 22 per cent the prior year. By province, Alberta rig released 6,792 wells last year, oďŹ&#x20AC; 16.32 per cent from 8,117 wells drilled in 2011. By metres drilled, the province rig released 14.07 million metres compared to 15.03 million metres the previous year (a decrease of about six per cent). There were 5,039 wells drilled with a target of oil or bitumen (oďŹ&#x20AC; from 5,239 the prior year), while only 1,097 wells had gas or coalbed methane (CBM) as an objective (compared to 2,227 the previous year). Operators in Saskatchewan drilled 3,170 wells during 2012, a decrease of 9.2 per cent from 3,491 wells the prior year. Metres drilled slumped 5.26 per cent to 5.17 million metres from 5.45 million metres in 2011. In British Columbia, fewer than 500 wells were rig released over the course of 2012, with a 25.91 per cent year-over-year decline (466 rig releases last year compared to 629 in 2011). Metres drilled declined to 1.81 million metres from 2.24 million metres. Manitoba operators drilled a record 615 wells last year, up 5.49 per cent from 2011. It was the only province to record a year-over-year increase in rig releases. Metres drilled lifted 8.57 per cent to 1.15 million metres in 2012 from 1.06 million metres the previous year.

PIPELINE NEWS March 2013

&DQ\RQ LV WKH IDVWHVW JURZLQJ IUDFWXULQJ FRPSDQ\ LQ 1RUWK $PHULFD :H GHOLYHU TXDOLW\ FXVWRPL]HG SUHV VXUH SXPSLQJ DQG VHUYLFH VROXWLRQV WR WKH RLO DQG JDV LQGXVWU\ LPSURYLQJ RXU LQGXVWU\ RQH MRE DW D WLPH ,I \RXÂśUH ORRNLQJ IRU D FDUHHU ZLWK D OHDGLQJ RUJDQL]DWLRQ WKDW SURPRWHV ,QWHJULW\ 5HODWLRQVKLSV ,QQRYD WLRQ DQG 6XFFHVV WKHQ ZHÂśUH ORRNLQJ IRU \RX 1RZ KLULQJ &DQ\RQ &KDPSLRQV IRU WKH IROORZLQJ SRVLWLRQV &ODVV 'ULYHU 2SHUDWRUV +\GUDXOLF )UDFWXULQJ &UHZ &DEEHUV 'DWDYDQ 2SHUDWRUV 6XSHUYLVRUV $SSOLFDQW 5HTXLUHPHQWV

f 2LO *DV H[SHULHQFH DQ DVVHW f :LOOLQJ WR ZRUN IOH[LEOH KRXUV f 6DIHW\ IRFXVHG

f 6HOI 0RWLYDWHG f &XUUHQW DEVWUDFW f &ODVV GULYHUV OLFHQVH

:K\ &DQ\RQ"

f '\QDPLF DQG UDSLGO\ JURZLQJ FRPSDQ\ f 3UHPLXP FRPSHQVDWLRQ SDFNDJH f 5563 0DWFKLQJ SURJUDP

f 3DLG WHFKQLFDO DQG OHDGHUVKLS WUDLQLQJ f 6HDVRQDO RSSRUWXQLWLHV f RU URWDWLRQ

:H WKDQN DOO DSSOLFDQWV KRZHYHU RQO\ WKRVH VHOHFWHG IRU DQ LQLWLDO LQWHUYLHZ ZLOO EH FRQWDFWHG

+RZ WR DSSO\ HPDLO KU#FDQ\RQWHFK FD ID[ ZHEVLWH ZZZ FDQ\RQWHFK FD

PIPELINE NEWS Saskatchewanâ&#x20AC;&#x2122;sPetroleum Petroleum Monthly Monthly Saskatchewanâ&#x20AC;&#x2122;s

Advertising Representative Lloydminster OfĂ&#x20AC;ce Deadline: March 22, 2013 Remuneration: B.O.E. Pipeline News is seeking an energetic self-motivated person to service Pipeline News accounts in the Lloydminster region. Pipeline News is a provincial monthly oil and gas newspaper with circulation of 28,000.

FUEL YOUR AMBITION LOOKING FOR

Job Description: - Advertising Sales - Monthly Conference Calls - Developing Sales Strategies - Revenue Growth - Client Visits - Cold Calling - After Sales Support - Working with Graphics Department - ProoĂ&#x20AC;ng - Ensuring Proper Booking Dates - Ensuring Overall Client Satisfaction - Pre Press - Ensuring All Advertisers Are Accounted For - Giving Okay To Pre Press Job Requirements: The winning candidate will have the following: Previous Advertising Sales Experience - Great Attitude - Enthusiasm - Self-Motivation - Professional Appearance - Valid Driverâ&#x20AC;&#x2122;s License - Reliable Vehicle Pipeline News offers a competitive salary or commission based remuneration program complete with health and dental beneĂ&#x20AC;ts. If you are interested in this position please email your resume, complete with cover letter and references to: Brant Kersey Email: brant_kersey@yahoo.ca Subject Line: Pipeline News Ad Position

Well Servicing Hands: Rig Managers, Operators, Derrickhands and Floorhands IRU (VWHYDQ DQG DUHD QUALIFICATIONS:

&ODVV 'ULYHUÂˇV /LFHQVH $OO 33( 3URYLGHG E\ 5RFNZHOO RIIHULQJ $ERYH &$2'& :DJHV

ensignjobs.com 1-888-367-4460 Fax: 780-955-6160

C37

C38

PIPELINE NEWS March 2013

CAREER GuĂ&#x2014;de 101 Supreme St. (Shand access road)

EMPLOYMENT OPPORTUNITY EMPLOYMENT OPPORTUNITY

For further info please contact Randy at either 453-2226 or randy@prowell.ca 38-2

â&#x20AC;˘ 1A Drivers â&#x20AC;˘ Journeyman Mechanic â&#x20AC;˘ Shop Hand Send resumes to: spartan.dispatch@hotmail.com or fax to 306.453.4495 Spartan Trucking Inc. - Carlyle, SK

38-tfn

&KHPLFDO &LUFXODWRU

&XUUHQWO\ +LULQJ ([SHULHQFHG

(VWHYDQ 0LGDOH :H\EXUQ DUHD

Â&#x2021; :HOO 7HVWHUV Â&#x2021; 6XSHUYLVRUV Â&#x2021; 2SHUDWRUV +RXU 6KLIWV 'D\V 1LJKWV 0XVW KDYH &ODVV 'ULYHUÂŞV /LFHQVH 1R %ORZ %R[ /LFHQVH 0XVW KDYH 2LOILHOG 6DIHW\ 7LFNHWV + 6 :+0,6 )LUVW $LG &35

0XVW KDYH Â&#x2021; \HDUV RLOĂ&#x20AC;HOG H[SHULHQFH Â&#x2021; &OHDQ GULYLQJ DEVWUDFW Â&#x2021; &XUUHQW VDIHW\ WLFNHWV )LUVW $LG &35 7'* + 6 $OLYH :+0,6

)D[ UHVXPH WR RU HPDLO NULVFDUOH\#FDQGQRLOĂ&#x20AC;HOG FRP

$66,67$17 $'0,1,675$725

LQ 3URYRVW $OEHUWD 7KLV SRVLWLRQ ZLOO ZRUN FORVHO\ ZLWK 0DYHULFNV 4XDOLW\ &RQWURO 0DQDJHU DQG RSHUDWLRQV WR DVVLVW LQ PDLQWDLQLQJ SURMHFW Ă&#x20AC;OHV DQG Ă&#x20AC;QDO WXUQRYHU GRFXPHQWDWLRQ

Send your resume to newdrillgenerators@hotmail.com or fax to 306.448.2071 Call Bruce or Shane at 577-1907 if you have any questions.

Rentals Available Generators for Pumpjacks, Rig Shacks and Drilling Rigs. 400BBL Tanks Test Separators Flare Stacks H2S Gas Scrubber

.H\ 5HVSRQVLELOLWLHV Â&#x2021; 3URMHFW GDWD HQWU\ Â&#x2021; ,QVXULQJ DOO UHTXLUHG UHFRUGV DUH LQ SODFH Â&#x2021; 0DLQWDLQLQJ SURMHFW Ă&#x20AC;OHV 3UHIHUUHG (GXFDWLRQ DQG ([SHULHQFH Â&#x2021; 2LOĂ&#x20AC;HOG FRQVWUXFWLRQ H[SHULHQFH DQ DVVHW EXW QRW D UHTXLUHPHQW Â&#x2021; &RPSXWHU VNLOOV ZLWK IRFXV RQ PLFUR VRIW ZRUG Â&#x2021; +LJK VFKRRO GLSORPD RU HTXLYDOHQW

Wages Negotiable

t 3JH .BOBHFS t %SJMMFST t %FSSJDLIBOET t 'MPPSIBOET t $BSFFS %SJWFO t -PDBMMZ #BTFE t 4BGFUZ t *OOPWBUJWF &RVJQNFOU

Matrix Well Servicing

6W 6XLWH /OR\GPLQVWHU $% 3OHDVH VHQG UHVXPHV WR ID[

48$/,7< &21752/

New-Drill Generators requires a self-motivated individual to haul and service generators to locations in the Southeast Sask OilÂżeld.

We require the following:

FDUHHUV#PDWUL[ZHOOVHUYLFLQJ FRP

)D[ UHVXPH WR

Help Wanted

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

Full Time Positions Available â&#x20AC;˘ Pressure Truck Swampers â&#x20AC;˘ Supervision Personnel

SERVICE RIG PERSONNEL

-RE 'HVFULSWLRQ Â&#x2021; &RPSO\LQJ Ă&#x20AC;HOG GDWD WR SURGXFH UHSRUWV Â&#x2021; :RUN DXWRQRPRXVO\ Â&#x2021; (QJDJHV LQ GLUHFW FRQWDFW ZLWK Ă&#x20AC;HOG FRQWUDFWRUV Â&#x2021; 2WKHU GXWLHV DV DVVLJQHG Â&#x2021; 2UJDQL]DWLRQ DQG SUREOHP VROYLQJ VNLOOV

12: +,5,1*

-2851(<0$1 (/(&75,&,$16

$335(17,&(6 RU (/(&75,&$/ +(/3(56 Â&#x2021; QR H[SHULHQFH UHTXLUHG Â&#x2021; VDIHW\ WLFNHWV DQ DVVHW EXW QRW UHTXLUHG

6(&5(7$5< Â&#x2021; H[SHULHQFH DQ DVVHW EXW QRW QHFHVVDU\

Competitive Wages Offered Health Plan, RRSPâ&#x20AC;&#x2122;s & Bonuses )RUZDUG 5HVXPH WR )D[ ( PDLO FODUNL]VDN#VDVNWHO QHW RU ODUU\ERXWLQ#VDVNWHO QHW 3K 0DLO %R[ (VWHYDQ 6. 6 $ $ 2U DSSO\ LQ SHUVRQ WR 3HUNLQV 6W

$SSO\ WR SDW GRHW]HO#PDYRLO FRP 40-2

2LOĂ&#x20AC; HOG a,QGXVWULDOa5HVLGHQWLDO

PIPELINE NEWS March 2013

$QQXDO VW

:LOOLVWRQ %DVLQ 3HWUROHXP &RQIHUHQFH

1HZ (1(5*< +RUL]RQV .12:/('*( 7(&+12/2*< 23325781,7<

$SULO 0D\ 5HJLQD 6. &DQDGD

s 7HFKQLFDO WDONV *HRORJ\ (QJLQHHULQJ (PHUJLQJ 7HFKQRORJ\ s :RUNVKRSV s H[KLELWV 62/' 287

5(*,67(5 12: (DUO\ ELUG UHJLVWUDWLRQ HQGV $SULO VW

DW ZZZ ZESF FD

C39

C40

PIPELINE NEWS March 2013

Â&#x2021; 3DUNHU 6WRUH Â&#x2021; )XOO 0DFKLQH 6KRS )DEULFDWLRQ Â&#x2021; +RXU 0RELOH 5HSDLUV 7HVWLQJ Â&#x2021; &RPSOHWH 6\VWHP 'HVLJQ Â&#x2021; +\GUDXOLF &UDQH 5HSDLUV Â&#x2021; 3UHYHQWDWLYH 0DLQWHQDQFH Â&#x2021; 3RZHU 8QLW )DEULFDWLRQ Â&#x2021; ,QGXVWULDO +\GUDXOLF +RVH )LWWLQJV Â&#x2021; 3XPSV 0RWRUV 9DOYHV &\OLQGHUV Â&#x2021; 3QHXPDWLF &RQWUROV Â&#x2021; :LQFKHV Â&#x2021; 3LSH +DQGOLQJ (TXLSPHQW .HOO\ 6SLQQHU 3LSH 6SLQQHU 5RG 7RQJV 7XELQJ 7RQJV

*'0 ;17 %#0 6 #((14& &1906+/' %#.. 6*' ^ *'0 &1906+/' 6*4'#6'05 ;174 $75+0'55 #0& %1565 ;17 /10';X 9*1 9+.. $' 6*'4' 61 )'6 ;17 $#%- +0 .+0'` *' +5 #8#+.#$.' (14 '/'4)'0%; 10g5+6' 5'48+%' FH *1745 # &#;X K &#;5 # 9''-^

Â&#x2DC; /'4)'0%; 0g5+6' '48+%' Â&#x2DC; 417$.'g5*116+0) Â&#x2DC; 4'8'06#6+8' #+06'0#0%'

Â&#x2DC; 15' '2.#%'/'06 Â&#x2DC; '&7%'& 1906+/' Â&#x2DC; ;56'/ 056#..#6+10 FHfKfGJI ^

:LO 7HFK 2IIHUV Â&#x2021; &RPSHWLWLYH :DJHV Â&#x2021; $SSUHQWLFHVKLS 3URJUDPV Â&#x2021; &RPSOHWH %HQHÃ&#x20AC; WV 0HGLFDO 5563Ò&#x2039;V 3HQVLRQ 3ODQ 3RVLWLRQV $YDLODEOH LQ (VWHYDQ Â&#x2021; +HDY\ 'XW\ 0HFKDQLF -RXUQH\PDQ DQG RU $SSUHQWLFHVKLS RU HTXLYDOHQW

3RVLWLRQV $YDLODEOH LQ 5HJLQD Â&#x2021; 2XWVLGH ,QVLGH 6DOHV 5HSUHVHQWDWLYH Â&#x2021; 2UGHU 'HVN 5HSUHVHQWDWLYH Â&#x2021; +HDY\ 'XW\ 0HFKDQLF -RXUQH\PDQ DQG RU $SSUHQWLFHVKLS RU HTXLYDOHQW

174 10' 5612 *;&4#7.+%5 &+564+$7614 #0& 5'48+%' ':2'465^ 74 37#.+(+'& /'%*#0+%5 #0& ':2'4+'0%'& 56#(( 9+.. 4'$7+.&X 5'48+%' #0&f 14 4'5'#. #.. 6;2'5 1( %;.+0&'45X 8#.8'5X /16145 #0& 27/25T ' 4'$7+.&X 5'48+%' #0& 4'5'#. 4+) 241&7%65 +0%.7&+0)U 2+2' *#0&.+0) '37+2/'06X 2+2' 52+00'45X 41&X %#5+0) #0& 67$+0) 610)5X 20'7/#6+% 2+2' 67$'5X #0& %#69#.-5T ' #4' &+564+$76145 (14 /#0; 1( 6*' 612 $4#0& 0#/'5 +0 6*' *;&4#7.+%5 +0&7564; +0%.7&+0) #4-'4 #0& 15' 1%614 (41/ 9*+%* 9' %#0 $7+.& %1/2.'6' %7561/ 5;56'/5 6*#6 #4' 6*1417)*.; 6'56'& 10 174 +0g*175' 6'56 56#0& 61 57+6 174 %7561/'45 0''&5T