Pipeline News May 2013

Page 1

PIPELINE NEWS Saskatchewan’s Petroleum Monthly

May 2013

Canada Post Publication No. 40069240

FREE

Volume 5 Issue 12

Alternative Energy:

CanGas Solutions

The Future?

A5

B.E. Solar Solutions B1

Cam Broten NDP Leader B4

Cenovus CO2 C1

This wind turbine, and the white metal boxes containing large lithium-ion baƩeries could be a harbinger of things to come for wind energy producƟon. Back row, from leŌ: Juan CorƟez, SaŌ, Jacksonville, Fl.; Wayne Powell, SaŌ, Jacksonville, Fl.; Ryan Bunge, SaŌ, Jacksonville, Fl.; Javier Mendoza, ABB, Montreal; Olivier Gaugain, SaŌ, Bordeaux, Fr.; Kirk Simonson, Pentec, Saskatoon; Ryan Jansen, SRC, Saskatoon.Front row, from leŌ: Rod Neufeld, Willms Engineering, Saskatoon; Mike SulaƟsky, SRC, Saskatoon. See story Page A3. Photo by Brian Zinchuk

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PIPELINE NEWS May 2013

INSIDE SECTION A 5

CanGas converƟng rigs to burn natural gas

6

Editorial

17 AlternaƟve energy has to make sense: SaskPower CEO

7-8 Opinion

23 Bonnyville show catering to exhibitors

16 Irish arrivals spawned by 2012 job fair

SECTION B 1

Sun powered doghouses worth a howl

9

4

New NDP leader Q&A

10 NRGreen builds new cogen plant

Small Meota upgrader planned

SECTION C 1

Cenovus open house

16 Estevan OTS bonspiel

4

Sask. resource credit reduced

19 Jim Arthurs on natural gas engines

10 SETI job fair

22 Land sale results

PIPELINE NEWS Saskatchewan’s Petroleum Monthly

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

WILLISTON BASIN PETROLEUM CONFERENCE & TRY A TRADE

SE & NW SK and SW Manitoba • Phone: 306.634.2654

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Candace Wheeler

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SW SK Phone: 306.773.8260

Regina & Saskatoon Phone: 306.715.5078

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Stacey Powell

Al Guthro

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PIPELINE NEWS May 2013

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TOP NEWS

Cowesses First Nation launches its High Wind and Storage Project By Brian Zinchuk Pipeline News Cowessess First Nation – “If you truly want to change the world, solve storage,” said Scott Tinker, the man behind the documentary Switch, during the 2012 Williston Basin Petroleum conference in Bismarck, N.D. This is the message the man with PhD in geological sciences and the Edwin Allday Endowed Chair in Subsurface Geology tells young people when talking about energy production and specifically renewable energy like wind and solar. Storage of energy for intermittent power sources like wind and solar is the key challenge for alternative energy. Now, an endeavouring Saskatchewan First Nation is seeking to do just that – solve storage. Cowessess First Nation launched a unique project just east of Regina in early April. While a tall, gleaming light-grey wind turbine may not seem like a big deal, what it is connected to is. This wind turbine is connected to likely the biggest battery you will likely ever come across. The idea is to capture energy when the wind is blowing, and release it when it is calm. Chief Grady Lerat spoke with Pipeline News on April 9th about the project, one that has taken several years to get off the ground. “We’re trying to prove out a battery system. The wind blows, but it’s intermittent. One turbine doesn’t affect the (electrical) grid, but 50 to 100 does,” he said. Lerat has been chief for three years and on the band council for nine prior to that. Band elections on April 27, after press time, will determine if he stays on in that capacity. The band has approximately 3,800 members, with approximately 750 residents on it reserve. The First Nation community worked with numerous agencies to make the wind project happen, the most important of which is the Saskatchewan Research Council. SaskPower was also a key player as the purchaser of the power generated. The wind turbine is made by Germany-based Enercon. The hub height is 76 metres, and its rotors are 48 metres in diameter. The height allows the turbine to capture high winds, not just surface winds. The turbine was chosen in part due to its simplicity of design. With no gearbox, there is very little maintenance.

But wind turbines are by-and-large proven, mainstream technology now. The important thing is the battery system, and it’s a big one. Lerat said it is

These two white containers are actually very, very large lithium-ion baƩery systems. Combined, they have a usable output of about 600 kilowaƩ-hours. They are the key to the new wind project Cowessess First NaƟon has embarked upon.

approximately six feet wide, 12 feet long and seven feet tall. “We got two, in case something should ever happen,” he said. Batteries to store wind power on the Prairies are not new by a long shot. Decades ago, lead acid batteries in glass vessels were used to store energy on Saskatchewan farms before electrification. But batteries these days are much more advanced, and have much more storage capacity. The batteries Cowessess chose are lithium-ion, the same type of composition used in modern cellphones and digital cameras. They have high energy density compared to other battery compositions. They also don’t have a “memory effect,” which is why Tesla Motors uses them for their high-end performance electric cars. One of the reasons lithium ion was chosen was it is believed to be safer environmentally, according to Lerat. As for the amount of energy that can be stored, Lerat said they were shooting for 20 per cent, but might be able to go as high as 40 per cent.

There’s a five year testing period planned. The battery is expected to last up to 20 years. Site selection In choosing the site, the First Nation decided to go with land it had just outside of Regina, as opposed to its primary reserve in the Qu’Appelle Valley, north of Broadview. The project is between Highways 1 and 33, just east of the Queen City. “We have three quarters in a row,” said Lerat, noting seven acres were used for the project. “We could probably put another nine turbines with the same capacity,” he said of the site. There was a conscious decision to not put it in the valley for esthetic reasons. Plus, putting it on the open prairie near Regina results in a better wind resource. The visibility of the project is important too, and perhaps a bit inspiring for band members. One doesn’t just put up a wind turbine and hope it’s going to blow enough to make the project economical. Wind resource studies are done to ensure there’s enough oomph in the air at the site before a turbine ever goes up. An 18 month wind study was done to ensure the location was right. Lerat said, “We found the wind resources were conducive to doing more, maybe to do a wind farm.” The First Nation had been actively working on developing a wind farm, partnering with TransAlta. Sites around Willow Bunch and Swift Current were considered. They missed out on recent larger scale wind project contracts with SaskPower, however. Algonquin Power was the successful bidder. Lerat mentioned initial talks about wind development as far back as 2004. It began in earnest several years later. “We started in 2008. Nothing but good things to say about all those involved,” he said. There were many organizations involved, including Natural Resources Canada, Aboriginal Affairs and Northern Development Canada, Saskatchewan Research Council, SaskPower, and a multitude of others. Natural Resources Canada contributed $2.8 million, while the provincial Go Green Fund put in $1.4 million. Cowessess First Nation paid $1.8 million. Aboriginal Affairs and Northern Development Canada contributed approximately $236,000 and another $180,000 came from the Saskatchewan Research Council. ɸ Page A9

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PIPELINE NEWS May 2013

BRIEFS

The Regina reĮnery can be seen in the distance, several kilometres northwest of the new wind turbine belonging to Cowessess First NaƟon.

PetroBakken name change

PetroBakken Energy Ltd.’s board of directors is proposing to change the name of the company to Lightstream Resources Ltd. In an April 23 press release, the company explained that PetroBakken was initially chosen to reflect the focus of its asset base in the Bakken and the ownership structure within the Petrobank Energy and Resources Ltd. group of companies. Since that time, although the Bakken continues to be a core part of its strategy, the company has diversified its asset base to include other significant operating areas, such as the Cardium business unit, which is focused on central Alberta assets. “The company also is no longer majority owned by Petrobank following the distribution of Petrobank's ownership interest to its shareholders at the end of 2012. Given the changes to our asset base and ownership structure, the company believes that the adoption of this new name is appropriate to accurately reflect our business,” PetroBakken said in the release. “The name Lightstream Resources Ltd. was chosen to reflect our commitment to the innovative development of long life, light oil plays which deliver growth and a stable dividend to our shareholders.” The name change is subject to shareholder approval and will be voted on at the company’s annual and special meeting of shareholders to be held at May 22, 2013, at the Telus Convention Centre in Calgary. Briefs courtesy Nickle’s Daily Oil Bulletin

The technical side of Cowessess’ wind project By Brian Zinchuk Regina – This April Cowessess First Nation began operations of its High Wind and Storage Project just a few kilometres east of Regina, between Highways 1 and 33. The innovative project uses massive lithium-ion batteries to supply power to the grid when the wind dies down. The First Nation’s key collaborator on the project is the Saskatchewan Research Council. Sheldon Hill is business unit manager of the alternative energy business unit with the Saskatchewan Research Council (SRC). He explained what their role has been, and some of the technical details. SRC has a role as project manager, service provider and collaborator, according to Hill. The technical support side is key. They have been involved from the very beginning, conducting the first wind study for Cowessess a number of years ago. SRC’s first involvement was in 2004, doing wind resource assessment. “The Saskatchewan Research Council was responsible for the design and project management,” Hill said. SRC focused on setting the performance specifications for the wind turbine and battery system as part of their involvement. While wind power generation is proven technology, the battery system used to bolster power output when the wind dies down is fresh. “It is very unique. There’s been a lot of talk and interest about how energy storage can tie-in with variable energy resources like wind and solar,” Hill said. “It’s one of the first largescale projects demonstrating the combination. “It’s a pilot project. There’s certainly hope it will go forward with replication and going ahead on a larger scale. “We will know a lot in about one year’s time,” he said. Af-

ter that, remaining questions will focus on items like long-term durability of the battery. Lithium-ion batteries were chosen as a “multiple best choice.” Those factors included life of the battery, the number of charge and discharge cycles and the depth of discharge, cost of batteries and “round-trip efficiency.” Hill said, “Several of the battery systems pose more of an environmental risk. (Cowessess First Nation) didn’t have a lot of tolerance of environmental risk. Taking care of the environment was very near to their hearts. Lead acid batteries, those used for automotive batteries, have been used on submarines ever since the invention of submarines over 100 years ago. In diesel-electric submarines, diesel generators charge the batteries while operating near the surface, and then the boats operate on electrical power deep under water. However, this type of battery was not a contender for this project. “When you use it on a daily basis, and discharge significantly, you don’t get any life out of them.” He explained that for a backup power generation system, lead-acid works work fine, but not for discharging on a daily basis. Other battery compositions discounted included nickelcadmium and nickel-metal hydride. Sodium-sulphur was the leading contender with lithium-ion, but Hill noted that one of the factors to consider was the maturity of the technology and availability of product. “It might be good on paper, but how mature is the technology? How commercially proven is it? What is the product availability? Can you get it in the size and quantities that’s needed.” ɸ Page A10

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PIPELINE NEWS May 2013

Converting rigs to burn natural gas

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BRIEFS Longview bit by prices

John Kadar, operaĆ&#x;ons manager for CanGas SoluĆ&#x;ons, is overseeing the conversion of four more CanElson Drilling rigs to a bifuel arrangement. This will allow the rigs to supplement their diesel consumpĆ&#x;on with much less expensive compressed natural gas. Here Kadar shows the compressed natural gas system for the mud pump motor.

„ By Brian Zinchuk Calgary – It’s hard to wrap your head around it, but one of the key areas for greenhouse gas emissions improvements in the oilpatch could end up being drilling rigs. CanGas Solutions, a division of CanElson Drilling, has been developing a system to convert drilling rigs to use both diesel and natural gas as fuel. Their intention is to capture are gas and use it to fuel drilling rigs. The result is taking a waste product, are gas, and using a cleaner-burning fuel in high consumption scenarios. While there may be environmental beneďŹ ts, the most important factor is another form of green – as in dollars. A drilling rig can use up 4,500 litres of diesel or more on a cold winter’s day, when boilers are running to keep everything at the proper operating temperature. CanElson is in the process of converting the majority of its Canadian rigs to burn both diesel and natural gas, a conďŹ guration they refer to as “bi-fuel.â€? Four of its 14 Saskatchewan rigs have already been converted, and they are in process of switching over the rest. Four more are undergoing conversion this spring. Rob Logan is president and CEO of Calgary-based CanGas, while Greg Loewen is vice-president of operations. The company was founded in 2006, Loewen and Fraser got things going in earnest in 2009. Logan came over recently from CanElson. Fraser, business development manager with CanGas, said the company initially focused on trucking captured are gas. They came up with a process to capture gas that would otherwise be ared, compress it, and store it on semi-trailers. Their ďŹ rst project was south of Estevan, at a location that could not be connected by pipeline to a gas gathering system due to the coal mines. They’ve since captured gas at other locations in Saskatchewan and then Alberta. The company’s ďŹ rst project was with PetroBakken. “They’ve helped us out tremendously,â€? Loewen said. “We have taken that success and multiplied it with other producers and in other applications.â€? Images on the CanGas website show a compressed natural gas trailer on a PetroBakken lease near the coal mines southeast

of Estevan. “We look to design and implement innovative solutions to optimize raw and compressed natural gas to displace diesel in a variety of applications,â€? Logan said. Liked it so much, they bought the company CanElson talked to CanGas about trucking gas. It ended up being a situation where they liked the idea so much, they bought the company in May 2012. The conversion cost varies per rig, according to Logan. “The Saskatchewan rigs are more of a kit,â€? he said. A Saskatchewan rig is about $100,000 to $120,000 for the mud motor and generator, and another $30,000 for the boiler, for $150,000 all-in. Alberta rigs will have two mud pumps and two generators, so there is more work involved. “With these conversion kits, we can displace up to 70 per cent (of the diesel that would otherwise be used). The average displacement is about 50 per cent,â€? Fraser said. Boilers are converted such that they can be switched over to 100 per cent natural gas. Natural gas is considerably cheaper that diesel, with an eight-to-one spread for raw gas to diesel. In other words, the fuel alone, not counting operating costs and equipment, is roughly one-eighth the cost of diesel. This system can displace 1,500 to 3,000 litres of diesel per operating day. That adds up to a lot of dollars down the road. The concept is designed to take gas that might be otherwise ared 10 miles down the road, and use it for drilling. The irony of the situation is that if the gas is ared, no royalties are paid on it and it’s essentially free. But if you capture it and use it, you have to pay for it. “It’s a funny conundrum,â€? Fraser said. “When they burn it, you don’t pay royalties. But if you conserve it, you may have to pay royalties. As soon as it leaves the lease, you have to pay.â€? SaskEnergy site SaskEnergy has installed a compressed natural gas station at its site just north of Weyburn on Highway 35. CanGas will be trucking gas from that site for now. In mid-April, ďŹ nal work was being done on the fuelling site. ɸ Page A12

Longview Oil Corp. drilled 29 (19 net) wells with 100 per cent success in 2012, adding initial 30-day production production of about 1,591 boepd (90 per cent crude oil and natural gas liquids) representing an onstream cost of around $28,000 per boepd. Output was at with 2011, however, and the company recorded a net loss. During 2012, Longview recognized an impairment of oil and gas properties of $31.9 million (Dec. 31, 2011 - nil) related to crude oil and natural gas producing assets in west-central Alberta. Crude oil prices were challenging during much of 2012 due to weakened WTI pricing, and wide dierentials between WTI and Canadian realized pricing that resulted in lower funds from operations compared to the prior year, the company wrote in a release. Due to weaker-than-anticipated commodity prices and higher dierentials, the company reduced the year’s capital expenditure program in the second quarter of 2012 to $46 million from $73 million. The company spent $44.49 million on property, plant and equipment and exploration and evaluation assets, which included spending of $24.2 million in Saskatchewan, $8.1 million at Nevis, $5.2 million at Westerose, $3.4 million at Brazeau and $2.1 million at Sunset, with the remaining spending for miscellaneous projects. Briefs courtesy Nickle’s Daily Oil Bulletin

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PIPELINE NEWS May 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 • Virden - Harley McCormick 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.

What’s up with the wind turbine? Some of our loyal readers might wonder why our front page this month features a wind turbine. After all, this is Pipeline News. Shouldn’t there be a drilling rig, service rig, or maybe a pipeline on the cover? One might think that, but in reality, this new wind turbine, just outside Regina, may be the harbinger of things to come, and could indeed lead to more work for those drilling rigs, service rigs, and pipeliners. Cowessess First Nation, in April, brought into operation the culmination of nearly a decade of work trying to get a wind project going. While the blades are now spinning, this project is far from over. It’s just beginning. Instead of just putting up a wind turbine and selling power, the forward-thinking First Nation has partnered with the Saskatchewan Research Council and several other agencies to address one of the most significant questions in the energy mix – how do you make variable power sources like wind and solar work in a grid that needs predictability? What happens when the wind stops, or the sun goes behind a cloud? Can you level out the power production curves with large batteries? Their project uses two giant batteries to store energy when the turbine is turning, and release it when the power generated by the wind drops off. It’s not a total solution. It won’t fill in for a whole night. The batteries will only give a few hours replacement at full output. But, if successful, it will make it much easier for utilities like SaskPower to integrate more wind

into their grids. This is where the relationship to the petroleum sector comes in. Utilities need to backstop wind power generation with dispatchable power generation for the times when the wind is not blowing. The natural fit is natural gas turbines. They can be spun up and down as needed, addressing not only peak power demands, but also replacing variable sources like wind when they aren’t putting out. That, in turn, means more markets for Saskatchewan natural gas. In recent years, SaskPower has built several gas turbines throughout the province. Additionally, it contracted power that will be generated by Northlands Power’s new North Battleford natural gas power station. More gas burned here hopefully means more drill bits turning, and more pipelines connecting the new holes. Saskatchewan’s natural gas industry has been described by at least one official as “flatlined,” so any new market is welcomed. Alternative energy, our focus this month, isn’t an enviro-nut conspiracy. Mankind’s energy sources have continued to evolve – from wood to whale oil to coal to oil. The resurgence of natural gas may be the next step in that continuum. When paired with wind, it could have a profound impact on our world. It will never totally replace oil, but it may give us more options for the future. So think of it this way – for every wind turbine that goes up, they’re probably going to have to drill a few holes to back it up with fossil fuels. One way or another, it’s all related.

PIPELINE NEWS May 2013

From the Top of The Pile

A7

OPINION

By Brian Zinchuk

Two knockdowns and no training. Just lovely I’m in McCarran International Airport in Las Vegas, looking for a magazine for the flight home, when I see the distinctive yellow border of my old favourite – National Geographic. The front page photo is a flare pit, with the text saying, “America Strikes Oil – the Promise and Risk of Fracking.” This looks promising. The photo is nearly identical to one I shot several years ago on my way back from the Williston Basin Petroleum Conference in Bismarck. Opening it, that promise withered. The story starts by telling the tale of Susan Connell, a produced water hauler. She’s from Montana, but lack of construction work there for both she and her husband meant they were about to lose their house, so she went to find truck driving work in North Dakota. At first no one would hire her because she was a woman, so she found work hauling grain. A little later, she got her chance and started hauling produced water, substantially increasing her income. The second paragraph of the story, however, brought a chill to my spine. It read: “Just don’t pass out on me,” Connell says, half in jest. We’ve scaled a steep stairway to a narrow steel catwalk 30 feet above the ground, but she’s not referring to the height. She says that one of the first times she opened the hatch atop a dirty water tank, she was overcome by fumes. “I fell to my knees.” No one had warned her about the dozens of chemicals in the water, including hydrogen sulphide, H2S, it’s rotten egg odor created by bacteria growing inside wells. In high enough concentrations, it can be poisonous, even lethal. Ironically, the gas poses the greatest risk when it deadens your sense of smell, another safety lesson Connell

Shifting Gears

One Woman’s Perspective on Life, Liberty and the Pursuit of Land Locations By Nadine Elson Spring in the oilpatch is all about training, taking advantage of the annual road bans to renew various safety courses. My friend Leanne, who works in the patch in the area of pipe inspections, and I had done that. We were now attending training of a different type - motivational training. We were laughing and chatting when we first heard the sound. It was a muffled roar, swelling in intensity. Soon, vibrations could be felt underfoot. I was nervous. Leanne looked around incredulously. “The building is actually moving,” she said in awe. I looked up at the ceiling. Would the roof hold? The province had seen more than a 150 roofs collapse this winter due to snow. The building in question was Saskatoon’s Credit Union Centre. Leanne and I had driven up to

had to learn on her own. Eventually someone gave her an H2S detector, which she clipped to her collar whenever she approached a well that turned “sour” enough to be hazardous. Once she was pumping dirty water from her tanker truck when the detector sounded. She scrambled away, thinking she’d escaped harm. But hours later, she felt stabbing pains in her stomach, the prelude to a weeklong bout of vomiting. Her next purchase was a gas mask. This account made me sick to my stomach. If this is how the American oil and gas industry is operating, no wonder people are protesting pipelines in the streets. The above account could, and should, be used as an Enform case study of exactly how not to operate in the oilfield. Last year Enform trained 149,000 people in H2SAlive in Canada. It was clear she had no prior safety training. Her employer failed miserably on that front. She was not provided with the proper safety training, nor the personal protective equipment such as a gas detector or self-contained breathing apparatus. I doubt a “gas mask” would do her much good. She suffered two knock down events and still the company did nothing? Did she report these events? Did the oil producer know about this? I read this account to Chris Neitling, who is a professional HSE consultant, specializing in oil and gas pipelines and facilities. A Preeceville boy, he’s appeared in Pipeline News several times. Neitling said, “Given the level of inaccuracy in the story, it is no wonder the American people are becoming progressively anti-oil. I am further perplexed why National Geographic would not have taken the time to verify the validity of such an account, as that account directly indicates violations at the local, state and national level, labour laws, requirements and responsibilities

and regulations.” He added, “From an OH&S perspective, Canada is 10 years behind Europe, and America is 10-15 years behind Canada.” There’s no question of that from the article. The photos tell the tale. First, there are the flare pits, which have been gone from Saskatchewan for many years. Three years ago, when I last reported on them, nearly all have since been cleaned up. Then there’s the giant dug pit with a liner to store “rainwater and borehole waste.” Where are the tanks? The two-page photo of a service rig has the roughnecks in jeans. I highly doubt they’re fire retardant. While the article says Connell, herself, wears fire retardant coveralls, the photo of her loading her truck puts lie to that statement. Her FRs are hanging around her waist. Nice ball cap, by the way, and such nice eyes without pesky safety glasses. I’m not saying Canadians are perfect. Far from it. A lot of people get lax, and smarten up as soon as they see me show up on the lease with a big camera. But on the whole, Canadian operations are tremendously further advanced than what National Geographic showed in North Dakota. If nothing else, we would expect everyone setting foot on a lease would have had their H2S training. And one would expect they wouldn’t be buying their own “gas mask.” Proper self-contained breathing apparatus should be on site. The magazine may have had a yellow border, but the article was a big black mark for our industry. Brian Zinchuk is editor of Pipeline News. He can be reached at brian.zinchuk@sasktel.net.

Why are you here? Saskatoon to spend “An Evening with Oprah Winfrey.” We weren’t alone. The building was packed with a sold out crowd of 14,000 women and 50 men who had come to see Oprah in person and hear her inspirational message. It was the last stop on her eight-city Canadian tour. The building was literally vibrating with the stomping of female feet and the applause that greeted Oprah when she first entered the arena. “Why are you here?” Oprah asked the crowd. “You know I don’t dance and sing, right?” Collectively, we laughed. But it was a philosophical question, as the queen of talk asked us to consider our purpose in life. She was easily the most glamorous motivational speaker I had ever seen, wearing a floor-length sequinned gown and killer high heels. “I am here,” she said, “to share parts of my life with you so that when you leave here tonight, you will live more forcefully and turn up the volume on your life. Turn it up so loud, so loud, so that you will know what you were called to do and be about the business of doing it. Because the ultimate question for all of us is - Why are you here?” She told us that every day we get to express ourselves through our work and through our life experiences much like a painter adding shadows, or erasing by painting over things, or adding more vibrancy to the canvas of our life.

“I say - why are you here? You are here because you’ve been called!” Oprah told us and for the next two hours she talked. Biographical in part, the main point of the evening was that we were “wasting time” if we did not know our calling in life, our purpose, something she has sometimes struggled to know herself. We clapped, we cheered, and some wept as she told both personal stories and life lessons. At the end of the evening, Leanne and I fought the crowds, got back into the van and drove the five hours home, arriving around 3 a.m. It had been a long day for a once in a lifetime opportunity. No problem, though, for an off-duty hotshot driver! Several days after returning from Saskatoon, I entered an oil company building. “Why are you here?” the receptionist asked. I looked at her sharply. Did she know that I had been considering that question for days since the evening with Oprah? “Now that is an excellent question,” I responded and paused before I replied. “I have been called,” I answered simply and smiled. Nadine lives in Estevan with her husband and family, and shifted gears a few years ago, becoming a hot shot driver for the oil patch. 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.

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PIPELINE NEWS May 2013

Lee Side of Lloyd By Geoff Lee

Redford’s budget axe misses target

Publicly-funded colleges and universities are bearing the wrath of a $6.2 billion reduction in revenue during Alberta’s 2013-14 budget year, mainly due to the so-called bitumen bubble. The bubble means bitumen is selling for a discounted price, compared to North American and global benchmark prices, resulting in a huge loss in projected royalties. Total revenues for 2013-14 are estimated at $38.6 billion, $5.4 billion lower than the budget forecast in 2012. To help balance the books, the government has cut $147 million from base operating grants of colleges and universities from this year’s budget. Instead of a two per cent increase in operating grants promised in the 2012 budget over the next three years, publicly-funded colleges and universities are looking at 7.3 per cent cut to their grants this year. For institutions such as Lakeland College in Lloydminster and Vermilion, that means 30 to 40 employees will be losing their jobs to make up for a $3 million shortfall in revenue. At a time when the federal government is making job training a priority to fill needed positions in the oil and gas industry in Alberta and Saskatchewan, any cuts to education don’t make sense. Lakeland College, for instance, is the only post-secondary institution with heavy oil pro-

gramming developed by industry to train the next generation of power engineers and specialists that are in short supply in Alberta. The cuts might impair the ability of Lakeland to proceed with its $17.5 million Petroleum Centre expansion as rising construction costs stay ahead of private fundraising. The Petroleum Human Resources Council of Canada has repeatedly issued well researched labour market information reports indicating as many as 9,500 oilfield workers are needed by 2015 to fill positions due to industry growth and retirements. Cutting operational grants will also lead to program reductions as educators scramble to keep the lights on and their heads above water. At the same time as the government is cutting back on operational grants, they have committed $500 million over the next three years to build new schools and modernize a slew of others. Why not properly fund existing colleges and universities today and prevent hundreds of valued employees – voters – from being laid off through no fault of their own? Under the leadership of Premier Alison Redford, Alberta teachers won’t get any pay increase this year. They are not in the same camp as public servants, doctors, and other health care workers who are hardly punished by the salary freeze. Some austerity program eh? It’s on all the backs of colleges and universities where companies from all sectors look to hire graduates to meet their

recruiting needs in a competitive job market. To add insult to injury, Alberta plans to borrow $4.3 billion in the 2013-14 budget to pay for infrastructure projects. How about a couple of extra mere million for Lakeland so they can finally build that Petroleum Centre that trains the workers who feed the economy and the coffers of Alberta? What is pathetic about the budget is the feigned surprise of the government, dating back at least a year, to widening price differentials due in part to well-publicized pipeline access issues and a growing U.S. supply of oil. The 2013 forecast price for conventional oil (West Texas Intermediate) is $92.50 a barrel and $68.21 a barrel for bitumen (Western Canada Select). The Redford government also needs to share the pain of its mismanaging the province’s finances. Here are other free pointers for the premier: How about cutting the salaries of our well-paid civil servants, but do it without layoffs? How about diversifying the economy and stop counting your chickens before they hatch on projected oil and gas royalties? How about an affordable tax hike on corporations? How about the premier and elected MPs quit wasting million of dollars on overseas travel junkets? Invite the world here instead. How about not financing the province on a credit card if you can’t afford operational grants to colleges and universities?

Are You Covered? By Harley McCormick

What happens if your alternative energy power system goes out? Alternative or renewable energy, while still a small player, has increased its presence in the Prairie provinces over the past few of years. A variety of alternatives are available, including but not limited to: wind, solar (PV and thermal), biofuel plants,

waste to energy, landfill gas recovery, algae, geothermal, and tidal power. Because we don’t have a great number of commercial alternative energy projects, I am going to discuss a few of the different options available to homeowners. There are several types of renewable electricity generating projects you can install at your home: solar, wind and water power projects. To date, solar panels have proven to be the most popular with homeowners, although geothermal (water) heating and cooling has increased in popularity. Solar energy is the energy developed by harnessing the radiant light and heat of the sun. This can be done through both solar photovoltaics or PV (electricity production) and solar thermal (heat energy) technologies. PV starts with a module that is comprised of multiple solar cells assembled in a protective weather enclosure (the solar panel). These panels are linked together into an array and typically mounted on the roof of your home with or without a tracker that can tilt panels to the most ideal angle to the

sun. Next, an inverter will convert the DC current to an AC current allowing the electricity to be used in your home. Thermal cells are similar to that of PV. The system itself does not create direct electricity though; instead the energy is collected through the heating of water or glycol circulating through the panels that can then be converted to electricity. Costs for solar energy installation can start for as little as $1,500 for a very small system and can quickly increase to $30,000 or more for equipment and labor for larger systems. Geothermal systems rely on an energy exchange between the air above ground and the ground itself. Below 10 feet the ground temperature is fairly constant. During the summer, when the temperature of the building exceeds that of the ground, heat pumps are used to pump heat from the building into the water or glycol, and then pumped through pipes into the ground. In the winter the process is the reverse, heat pumps extract heat from the ground and bring it into your home. The installation of a geothermal heat pump can reduce a home’s annual heating use by 50 to 70 per cent. The system is also capable of reducing cooling costs upwards of 40 per cent and water heating costs up to 25 per cent. The costs to install a geothermal system typically run $20,000 - $30,000 depending on if, and how many, water wells need

to be drilled. Typically, a geothermal system will pay for itself in 6-10 years. No matter what option you choose, each has its own special insurance considerations. For example, you may need coverage for the following scenarios: Loss or damage to any solar panels, geothermal pumps, or wind equipment on your property due to theft, fire, wind or other perils; Loss of income due to the interruption of the generation and sale of energy caused by loss or damage to your property (sometimes income is derived if the owner has developed their own wind power generation); Liability for any potential loss or damage to a third party, such as a solar developer or renewable energy installer, or the local energy distribution company. Renewable energy projects add significant value to your property, and this has additional insurance implications. Most comprehensive home policies require reporting any renovations or upgrades that impact the value of your property. It is important to speak to your broker before construction begins to make sure that you are adequately protected in the event that you suffer loss or damage to your home. Harley McCormick is a Virden, Manitoba based insurance broker with 10 years in the industry. He can be reached at hmccormickfca@mymts.net.

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

PIPELINE NEWS May 2013

A9

Innovative project will hopefully be inspiration ɺ Page A3 About half the cost is the battery system, and the other half is the wind turbine. Lerat said it was about “$4.6 million in iron, if you will,” The rest was in engineering and other expenses. Cowessess First Nation is the 100 per cent owner of the project. Cutting edge Lerat said they want to prove out a system,

carving out a niche in finding a sustainable way to make more wind power available. This is by smoothing out the power production cycle and storing energy. “It’s on demand, if we have enough storage,” he said. “It’s cutting edge. This is the first of its kind in North America,” Lerat said. He sees promise in such technology helping

northern communities which used diesel generators for backup power. Lerat keeps things in perspective, noting, “This may or may not be the system that can work.” “Down the road we’re hoping it will lead to better things,” Lerat said. “The future’s there. We have to go out and get it.”

Saft lithium-ion battery energy storage system Jacksonville, FL. – Saft, a leading designer and manufacturer of high technology batteries for industry, has been selected by Cowessess First Nation (CFN) to design, produce and install a battery energy storage system (ESS) including two Intensium Max 20E lithium-ion battery containers as part of the High Wind and Storage Project near Regina. The French company’s lithiumion batteries are used in applications from weather satellites and U.S. Army ground combat vehicles to “smart grid” applications in train stations. The Regina project is the first wind power application for Saft in North America. The grid-connected ESS system will help optimize renewable wind power performance by increasing reliability and decreasing volatility by as much as 70 per cent over the 15-year lifespan of the system. Each Li-ion ESS includes a state-ofthe-art, 400kW power conditioning system for use in conjunction with an 800kW utility scale wind turbine. “This project builds on Saft’s earlier successes integrating energy storage batteries with wind generation and will demonstrate the benefits of lithium-ion energy storage in enhancing the value of wind energy,” said Jim McDowall, business development manager at Saft’s Energy Storage Systems Business Unit in Jacksonville, Fla.

in a Nov. 7, 2012 press release. The system is designed to harness intermittent wind power and provide a more continuous and predictable output for both on-grid and off-grid applications. The High Wind and Storage Project will also reduce greenhouse gas emissions, reduce electrical production costs, provide more renewable power to the grid and potentially lower electrical rates since the battery can be charged during off-peak periods and dispatched during periods of peak usage. “This is an extremely important project that will increase the amount of renewable generation we can deploy on the grid,” said Cowessess Chief Grady Lerat. “It’s critical tohave Saft providing state-of-the-art technology to make the High Wind and Storage Project successful.” Saft has demonstrated that this base system can perform wind smoothing and achieve a maximum ramp rate of ten percent per minute of the rated power output of the 800kW wind turbine while also providing up to 400kwh of peak shaving capability. The flexibility and scalability of Saft’s solution also allows the energy content to be increased in 124kwh increments up to 992kwh if additional peak shaving capability is desired. The installation began operations in April 2013.

“The future’s there. We have to go out and get it.” - Chief Grady Lerat, Cowessess First Nation

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PIPELINE NEWS May 2013

SRC acts as project manager, service provider and collaborator Éş Page A4 “We wanted one of the leading technologies to get the package in the size needed, from a reputable company, meeting all the performance requirements we established. The potential for lithium-ion batteries costs to go down in the future due to mass production was another consideration. “There may actually be a market for the batteries for hybrid vehicles.â€? The idea is that in the future, batteries from hybrid vehicles that no longer meet the capability of the vehicle could be repurposed in this sort of

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less-demanding application. “It’s not necessarily about picking the leading, or best, battery technology. They’re all in a state of development. What looks like it was best last year might not look like it’s the best choice next year. What’s more important for us is moving the beneďŹ ts of energy storage, combined with variable energy resources like wind, and the integration strategy and power strategy to make them work eectively together.â€? Solving the riddle of bulk energy storage is dear to Hill’s heart, storing many megawatt-hours of energy storage. One of the projects the SRC is working on includes using compressed air for energy storage. “The most important thing is to prove the beneďŹ ts of energy storage.â€? The wind turbine is rated at 800 kilowatts. The “name plate capacityâ€? of the battery system is 775 kilowatt hours. Hill said, “We have 600 useful kilowatt-hours under that system.â€? “This is a very good depth of discharge compared to most batteries. “You can produce 600 kilowatts of power for one hour only. That’s not producing 800 kilowatts of its potential. But if it was averaging 260 kilowatts from the wind turbine, in that case, we would be able to run two-and-a-quarter hours at the average output capacity of the wind turbine.â€? ɸ Page A11

A large crane liĹŒs the blades in place. Photo courtesy Saskatchewan Reseach Council

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PIPELINE NEWS May 2013 ɺ Page A10 That’s not enough to make up for the lull overnight, when the wind typically dies down. “This battery does not firm up the wind energy and turn it into something that looks like a base load. It won’t turn it into a continuous output. What it does is it makes this variable energy source something that can be very manageable by utilities in terms of the generation they have to manage. It improves the predictability of the power output. If you have a wind farm, and you have some energy storage tied to it, and the wind dies off, you can all of a sudden notify the utility, ‘Hey, we’re giving you advance notice our system is coming offline in 30 minutes, or one hour, or whatever it is. We’re going to be ramping down our power at a controlled ramp rate so we don’t mess up your grid.’ “It makes it manageable. It gives the utility time to bring on other generation sources to fill that gap. It removes the volatility and it makes it easier to schedule

This 800 kilowaƩ wind turbine recently went up just east of Regina. It is owned by Cowessess First NaƟon.

A11

and manage your entire power generation mix.” “We’re trying to establish there are benefits to tying this to variable energy resources like wind. Otherwise, you become very limited in how much your energy generation mix can absorb in terms of wind and solar.” SaskPower is aiming for 8.5 per cent wind power. In Europe, wind power generation is has high as 20 to 25 per cent. “Even that tends to be a real challenge when they get there,” Hill said. “A common number (for percentage of wind) is around 15 per cent (where) it starts to become a real management issue, because your loads are variable. If you get power generation that’s also variable, things can go badly for you in terms of matching generation to load.” Large scale energy storage combined with wind generation allows for higher penetration of variable energy resources like wind and solar, Hill explained. “There may be other benefits to the utility beyond simply providing a more manageable generation mix. We want to explore some of those things as well,” he said. In a province that has long, cold winters without a lot of sunlight, is solar power an option? Hill thinks so. “The cost of photovoltaic (solar) has dropped substantially, and we do have a lot of sun. We are seeing a major increase of photovoltaic projects. The people who have typically viewed photovoltaic as something that’s not going to be viable here, that may not be true. It may be viable in Saskatchewan.” “It’s a great story of what Cowessess First Nation is accomplishing. They really have tremendous leadership, commitment and vision from their leaders, and support from their entire First Nation,” Hill said. “As much as we are interested in the technology development side of things, we are also excited to be involved in a project that has potential for economic development in Saskatchewan.” The project did have contributions from the provincial and federal governments. The replication model would be different, with multiple turbines and batteries. They haven’t determined what model is best yet.

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PIPELINE NEWS May 2013

Compresses natural gas station at Weyburn Éş Page A5 SaskEnergy has compressed natural gas reďŹ lling stations throughout the province, but the one in Weyburn will be a more substantial. “We’re going to be trucking gas from that station,â€? Fraser said. “This is a lot bigger. It’s the ďŹ rst large-scale station that’s being put in,â€? Fraser said, noting it will be able to ďŹ ll a large semi-trailer with compressed natural gas in less than three hours. It would take 12 hours at a conventional station. “We can turn these trucks around very quickly. The company has more than 20 trailers. “We’re building them all the time. It’s a continual process,â€? he said. They are planning to build 30 trailers to run the 14 CanElson rigs in Saskatchewan. Logan noted they are going to have 50 modules in service by the end of the year.

Each loaded trailer has the energy equivalent of thousands of litres of diesel. There’s a variety of sizes. CanGas has projects in British Columbia, Alberta and Saskatchewan. These trailers can also be used as a gas supply in situations where the normal gas supply may be cut o due to items like maintenance. They can be used as a pipeline backup to feed gas plants or ďŹ eld compressors. “We did three of those last fall with SaskEnergy, Fraser said. They maintained gas supply during maintenance, he noted. Similar work has been done in Alberta as well, and CanGas has supplemented a pipeline network in B.C. Flare gas You can’t just put any gas in a trailer and then hook it up to a rig to run the engines, at least not in southeast Saskatchewan. “The issue with gas in southeastern Saskatchewan, particularly the Bakken gas, is it’s very rich, with heavier hydrocarbons in it. Very rich gas is very diďŹƒcult to use directly in an engine without some processing to reduce the heavy hydrocarbons,â€? Loewen said. “We are in the process of looking at that, but we don’t have anything in place right now. In some areas of Saskatchewan, like the west-central area, it’s possible to take gas directly from the wellhead and use it. Not so in southeast Saskatchewan. ɸ Page A13 Don Baran with IMW Industries does some ÄŽnal preparaĆ&#x;on work for the new industrial-sized compressed natural gas compressor for SaskEnergy north of Weyburn. CanGas SoluĆ&#x;ons will use it as its fuelling point to provide compressed natural gas for drilling rigs. This site will hopefully be the ÄŽrst of many CanGas can draw upon.

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PIPELINE NEWS May 2013 Éş Page A12 CanGas has captured are gas in Saskatchewan. That gas was taken to a gathering system, however, not directly to a rig engine to be burned. “We’re hoping this spring to try out a system we’re developing right now,â€? Loewen said. They are still ďŹ nalizing equipment for drying the gas. Some “light conditioningâ€? is needed at certain locations. The ultimate goal is to capture gas at a wellhead, do some light conditioning at the wellhead, compress it into a truck and bring it to a rig for consumption. Loewen said, “In an ideal world, that’s what will happen.â€? Looking beyond Asked about plans to oer natural gas conversions to drilling companies beyond CanElson, Loewen said, “As long as they have the right motivation, we’re very interested in bi-fueling the rig. Our plan of attack is to go to the producers and convince them of the beneďŹ ts, and have the producers suggest strongly to the contractors they would prefer bi-fuel rigs and these are the guys to work with.â€? Logan said, “As an early adopter of bi-fuel CanElson currently holds an advantage. Ultimately drillers will be judged based on their comparative ability to cost-eectively maximize the amount of diesel displaced by natural gas.â€? But as for CanGas, the senior management of CanElson have directed Logan to build CanGas as a stand-alone business. “We have a great opportunity to use CanElson as a beta test site, and we’ve learned a tremendous amount about what works and doesn’t work, and reďŹ ning our business model. Now, post-breakup, we’re going to start coming out and doing business with other people under terms that will be mutually beneďŹ cial.â€? Ideally, they would like to see new rig engine packages built with their bi-fuel system. So far, they’ve been converting operating rigs in the middle of winter. Logan said, “We’re saddle training running horses. It’s not optimal.â€? Since the rigs have been busy, he noted, “We’ve been kitting them up on the y, trying to be as minimally invasive as we can.â€? So far, seven rigs have been converted, including the four already done in Saskatchewan. They see bi-fuel rigs as a selling feature for drillers. “CanElson got a nice new contract based on bi-fueling a four-rig package,â€? Logan said. In other words, bi-fuelling their rigs has already shown results for CanElson. “We’ve lined up two contracts for CanElson, and potentially a third, in a pretty diďŹƒcult environment right now,â€? Logan said.

A13

Explaining the diďŹƒcult environment, Logan said, “It’s tough to get longterm commitments from producers for new rigs. The fact they have bi-fuel capabilities and a bi-fuel culture has allowed them to win contracts.â€? Who gets the savings from substantially less expensive natural gas as fuel? “The whole idea is to generate savings. Right now, In the CanElson model, it’s shared between the producer and CanElson. When we start working outside of CanElson, it will be shared between ourselves (CanGas) and the producer. We think that’s the model that has legs. “That way the producer is incented to do two things: maximize displacement, and minimize trucking costs, all sorts of ancillary costs that we can help manage and they can help manage together. If we don’t work together, there’s no savings.â€? ɸ Page A14

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ɺ Page A13 A producer with their own gas could use it to partially fuel rigs drilling for them, displacing much-more expensive refined diesel. Ironically, it’s a model not far off from the 100-mile diet, consuming locally produced food, except in this case, producers would be using locally produced gas. “We’d love to talk to them about creating an industrial gas CNG station at the tail end of their gas plant, and we’ll sell gas to anyone and everyone in the region as well,” Loewen said. Logan said, “We’ve been refining our in-the-field model with CanElson to be sure we can deliver profitably. In the next couple months, we’ll be putting our marketing hats on.” Loewen said they do have a natural gas source now at Weyburn. They would like other sites in Saskatchewan. In the southeast, he noted they would need at least two or three sites, and possibly as many as four or five, but not much more than that. Weyburn is a good site, but at the very western edge of the Bakken development and high-activity area, it’s a long ways from Redvers, for instance. Trucking costs are an important factor, they note. “If you mismanage it, it will sink you,” Logan said. The other critical factor is volume – using as much of the fuel on a trailer as possible without running out, all the while you don’t want to return trailers for refuelling that still have a lot of compressed natural gas on board. “Part of our business is the logistics side – trading out that trailer when it’s near-empty, and you’re not leaving too much gas on it, and you’re not leaving the rig burning 100 per cent diesel because the new trailer hasn’t been able to get there,” Loewen said. In late 2011, the industry saw diesel shortages due to a fire at the Regina refinery. Having diversity of fuels somewhat lessens the dependency on diesel. However, while natural gas usage will reduce diesel consumption, a bi-fuel rig’s engines cannot run on natural gas alone. “You need diesel in the mix,” Logan said. Loewen said probably at least 30 rigs in Canada and another 50 rigs in the United States have been converted to run in bi-fuel setups with natural gas. But they are usually connected to pipelines. Loewen said, “What’s unique about what we’re doing is all the other rigs in Canada are pipeline connected. They don’t have the gas trucked into their rig. They’re taking it off a pipeline. That’s great if you’re on a pad site where the rig’s going to be there for six months. But for 95 per cent of the drilling done in Western Canada, you can’t do that. The only alternative is trucking gas in.” One other benefit of having an infrastructure set up to compress natural gas for rig usage is that it will allow producers to convert their field vehicles to run on natural gas as well. From producers whose field operators will typically put hundreds of kilometres on their pickups each day, this can be a real savings. In this case, 100 per cent displacement is possible. All the major manufacturers are coming out with CNG trucks that can run 100 per cent gasoline or 100 per cent natural gas.

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PIPELINE NEWS May 2013

A15

Converting a drilling rig to burn natural gas Carlyle – John Kadar, operations manager for CanGas Solutions, has his work cut out for him during this spring’s breakup. He’s overseeing the conversion of four CanElson Drilling rigs in Carlyle to burn both diesel and natural gas. “We tie into the engine central control system. We talk to it via our computer system and we monitor the engine exhaust temperatures, vibration and high and low temps,â€? he said. The engines, originally conďŹ gured to run on just diesel, will use a dieselonly fuel mixture at both the low and high ends of the power band. In the middle, it runs a mixture of diesel and natural gas. “Diesel has a higher BTU than natural gas,â€? Kadar said, explaining why diesel is needed at higher RPMs. “This kit is a dual fuel bank. It’s a V-engine, and we have to control both sides. The mud pump engine on the rig in question is a V-2000 Detroit. They convert the mud pump and generator engines on the rigs, but not the oor engine. “We don’t do the drawworks engine. It’s not a big consumer of fuel,â€? he said. Much of the time the drawworks engine is running at idle. “We’re doing gen sets, and pumps, and in the future, top drives as well. Rig 10 has a top drive. Rigs have diesel tanks as part of their design. The compressed natural gas, however, is stored on a semi-trailer. It has to be connected by an overland hose, protected by a drive-over ramp. If the lease is too muddy and it’s not matted, there may be times when running natural gas is not an option. One doesn’t want to take a chance with the connecting hose being damaged due to soft terrain. So far, it hasn’t been an issue.

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Typically the trailer will be 50 metres from the well. The natural gas fuel line enters the mud pump shack. From there, another line goes overhead to the gen set in another shack. “We have to meter all the gas that comes in,â€? Kadar said. Their system reduces the pressure of the natural gas substantially before it reaches the engines. The gen set conďŹ guration is already in its second generation, with more computerized controls and improved electrical harness. The system is designed for wireless control. “We can monitor our system through cell or satellite and control it from a chair,â€? Kadar said. It takes two to three days to do an installation per engine, about a week to do both the mud pump and gen set with three people working on it. One is a pipeďŹ tter, the other two are technicians. “It’s better for the environment. It’s cleaner burning fuel. It’s the responsibility of big business to improve how we do business. How do we get natural gas prices back up? Either we put it in a boat, or come up with new ways to use it.â€?

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A16

PIPELINE NEWS May 2013

Tommy Owens’ brother met a senior person with CanElson Drilling, and now he and his friend, Aodhan Brown, have come to Canada to work on drilling rigs. Owens has put his career as an engineer on hold to become a roughneck.

Seen in red, Aodhan Brown is only 22 years old, and he’s already completed his mechanic apprenĆ&#x;ceship two years ago. Brown is now working with CanElson Drilling. Here, he’s learning how to install natural gas conversion kits onto drilling rig generators and mud pump engines. Brad Jones, ÄŽeld technician with CanGas SoluĆ&#x;ons, assists.

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Carlyle – In March 2012, 27 Saskatchewan employers took part in recruitment fairs in Dublin and Cork, Ireland. A substantial number of those businesses were in the Saskatchewan oilpatch. The employer-driven mission that ZRXOG OLNH WR :HOFRPH WKHLU QHZ 'HQWDO 7KHUDSLVW &RPH YLVLW RXU QHZ +\JLHQLVW included both Premier Brad Wall and Advanced Education, Employment and Immigration Minister Rob Norris, is still seeing results. On April 15, two more Irish tradesmen came over to Canada for work. Pipeline News encountered them on April 19, in the muddy yard of CanElson Drilling in Carlyle, assisting in the conversion of drilling rigs to run on both diesel and natural gas. Tommy Owens and Aodhan Brown both left jobs in Ireland to come to Canada. “I’m going to be a roughneck. Originally I was a mechanical design engineer, designing medical 0DUPLW 3ODVWLFV¡ 5HYROXWLRQDU\ 723),// 7DQN $GDSWRU devices,â€? said Owens. “I wanted a change, a change of scenery. “I left a good job at Randox Laboratories of four years.â€? Owens has his professional certiďŹ cation as engineer, but he has chosen to now work with his hands. “I feel like putting it on the back burner for a while. I can always go back to it,â€? he said. Unattached, the 30-year-old Owens came to Canada on a two-year work visa with his friend, Brown. They came over the pond at the same time, and are now staying at Moose Mountain. Brown, 22, said, “I’m a hydraulic ďŹ tter, a diesel mechanic.â€? He has his trade certiďŹ cation, having completed his apprenticeship two years ago. “At home you stay on and go to college, or you go to work. The status is not good for apprenticeships,â€? he said. Asked why, Brown said, “The recession. There’s no jobs. It’s the whole of Europe.â€? He attended one of the job fairs Saskatchewan ZZZ PDU PLWSODVWLFV FRP took part in. “It was brilliant,â€? he said, but then found disappointment in the follow-up. He had no replies from job inquiries, not hearing back from the prospective employers. However, they found another way. Owen’s brother was already in Calgary, where he met someone from CanElson Drilling. “At home, there’s a lot of people out of work,â€? Brown said. Having been in Canada for less than a week, he noted, “The country is very friendly. We’ve been looked after since getting here. His personal drive was evident. Brown noted how a person in Ireland could remain in a stagnant position for a career. He wants to work and advance. “We’re not here for a party. If you come to Canada, you can make something out of it.â€?

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A17

Alternative energy has to make sense „ By Brian Zinchuk Regina – While “alternative energyâ€? has become a global buzzword, in Saskatchewan the reality is, if SaskPower isn’t doing it, it’s not going to happen. However, for many years the Crown corporation, which relies primarily on coal, hydro and natural gas for its power generation, has been adding alternative energy sources to the mix. We now have wind turbines and cogeneration plants scattered throughout the province. Additionally, one of its most signiďŹ cant eorts is to turn “dirty coalâ€? into “clean coal,â€? being the ďŹ rst power utility in the world to use carbon capture technology on a commercial scale. On April 4, SaskPower President and CEO Robert Watson spoke with Pipeline News regarding the Crown’s alternative energy initiatives. His key message: SaskPower wants alternative energy, but it has to make economic sense. Pipeline News: How important is alternative energy to SaskPower’s plans? Robert Watson: It’s important to SaskPower and it’s important to our customers. We have growth in the province over the next 10 to 40 years and it’s going to be unprecedented. We need to ďŹ nd energy that we can supply on a reliable, aordable basis to our people. We have the traditional energy that we’re looking to maximize. We do have some hydro in the north – true run-ofthe-river – with less environmental impact, that we’re looking at and want to develop. We will be adding wind power to the system as our baseload increases. We want to get to the 8.5 per cent level, which is the industry best practice for wind power. Biomass – we have the 36 megawatt Meadow Lake facility that we’re looking forward to coming online (valued at approximately $160 million). And we’re looking at any sort of biomass, although it becomes limited because of the ďŹ bre you need to do that. Another thing we are very encouraged about is geothermal in the southern part of the province, with anywhere from two to ďŹ ve megawatt facilities throughout the southern part of the province. We’re looking at an initial test site for that. ɸ Page A18

SaskPower president and CEO Robert Watson explains that SaskPower wants alternaĆ&#x;ve energy, but it has to make economic sense. File photo

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A18

PIPELINE NEWS May 2013

You build the plant, we buy its power ɺ Page A17 Last but not least, for alternate energy. There’s no real solar capacity in the province yet, however, as the technology advances, it would probably become more advantageous for us to have a look at it. Right now we’re still at a winter high-load for the province. Unfortunately, it gets real cold and not too light in the wintertime here and therefore solar would be difficult as a main baseload for us. It could be something possibly in the future for complementary supply. PN: How much of your total generation capacity do you see from alternative energy in our power mix over the next 10 years? RW: That’s a real good question. Right now,

we’re about 55, 54 per cent comes from coal, about 20 per cent from hydro, about 20 per cent from gas, and the rest is a mixture. Over the next 10 years we won’t be adding much more new capacity because we’ve already got new capacity lined up. We’re adding 260 megawatts of gas generation. We will be adding more wind power into the grid to get it up to the 8.5 per cent. And we will be adding more hydro to the grid. We’ve got a 50 megawatt facility at Elizabeth Falls that we will be looking at developing. It’s a fair-sized run-of-the-river. We’ll be adding on a marginal basis over the next 10 years. We’ve already got lined up all our capacity right now. PN: What projects are you doing in this re-

www.kelro.com The Boundary Dam clean coal project was announced in April 2011. This year, the project will be commissioned. SaskPower president and CEO answered quesƟons at the iniƟal announcements. File Photo

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gard? What’s next on the agenda? RW: For the longer-term aspect, part of our alternate energy capacity is our Boundary Dam carbon capture facility, where we’ll be capturing 90 per cent of the CO2. It’s the world’s first full-production carbon capture facility. That’s the equivalent of taking approximately 250,000 cars off the road. That’s our banner, flagship facility that we plan on making successful and showing the world you can be responsible in burning coal and to make it as clean as possible. PN: Can you tell us about the Red Lily project at Moosomin, how is that working out? RW: The Red Lily project is in co-operation with Algonquin Power. It’s a fantastic facility. It’s a wind facility and a great one. PN: What about SaskPower wind projects? Or are you going to pursue a model of purchasing power rather than in-house when it comes to alternative energy? RW: Our next big one is Chaplin, with 170 megawatts coming on, a wind farm near Chaplin. That was done in an open, competitive bid. We will look at doing one or two open competitive bids in the future. (Chaplin’s) to be up and running in 2017. Chaplin’s between Regina and Swift Current. It’s a great wind area, down there, a sustainable wind area. It’s a private project. A private company is building it, and we’ve signed a long term power purchase agreement with it. We have a model right now where, essentially any new power generation, we’re looking for partners. If it’s something we’re rebuilding on one of our existing plants, or adding onto one of our existing plants, then we’ll do that ourselves. We don’t build anything. Everything’s done by outside parties. We just become project managers. We don’t have contractors we employ, all of it’s done by private contractors. For wind, we decided to do that entirely by third parties, by RFQ and third party bids. We’ll agree to a long-term purchase agreement with them, and they go out and finance the wind farms. With gas plants, we’ve done the same. We’ll look for private partnerships for gas plants. Either a private company builds it, and we’ll sign a longterm contract, or we will be the project management and build it with SaskPower. ɸ Page A19

A19

PIPELINE NEWS May 2013 Éş Page A18 The last wind RFQ we did was an excellent model. We’re looking for this much capacity, tell us where you want to build it. We give them guidelines, of course, because we want them fairly close to our transmission facilities. You tell us how much you want to charge us per megawatt-hour on a long-term contract, and we’ll sign with you. They build it. They ďŹ nance it, and we sign a long term contract. PN: This is all on competitive rates? You’re not doing feed-in-taris, like Ontario did? RW: No feed-in. It’s competitive rates. It’s a completely open and transparent bidding model. We’re not suggesting we follow Ontario’s model, no. We ďŹ nd that an open and competitive process for gas plants, wind farms and geothermal and most of those projects can get good, long-term pricing for it. PN: Regarding geothermal, what are you talking about? RW: It’s still in its infancy stage. We’re talking about doing a test for a geothermal site somewhere in southern Saskatchewan. The geology in the southern part of the province is supposed to be very good for geothermal. We’re interested in trying a test site down there to test that out, quite frankly. PN: Can you tell us about the recent Cowessess First Nation wind project? RW: The Cowessess First Nation is doing wind power with storage. We’re supporting it, of course. It’s their project. It’s better for them to talk to you about it. It’s a good project. We said we would take the power from them. PN: Alliance Pipeline’s NRGreen cogen is one recent source of additional power for SaskPower. Do you see more co-gen opportunities coming like this in the future? What about small scale co-gen, such as SAGD projects or are gas? RW: We’re quite open to all that, absolutely. Our model is, we’ve got to be very responsible doing price comparisons. We’ve got to be looking for the most reasonable price to purchase, build-to-buy, or build-to-own power as we possibly can. It’s got to be responsible. That’s why we don’t do feed-intari. That’s why we don’t supplement any power requirements. We look for competitive power to have built for us, or to have somebody build and we buy as competitive as possible. That’s our base model. So are gas, cogen, cogen in a facility like potash, we’re completely open to that stu. PN: When buying bulk power, what are we looking at, ballpark, for kilowatt hours? RW: We go for a range. There are two things we look at. First of all, we look at, do you need power right now? You don’t want to buy power too far ahead of time, because then you’re paying for it and not using it. One of the aspects of that is unfortunately, when you’re building a plant, it comes on in lumpy stages. You add 300 megawatts on in a lump. But

you need to have it over the next two years, so you have to do it that way. We look for, in the future, to de-risk our supply. Gas, we’re going to add to the eet to protect our coal eet. We’re going to add hydro to the eet. We’re going to add geothermal, small amounts, and run of the river. We look at both aspects, diversifying the eet, and cost aspects. We have North Battleford (Northland Power) coming in in the next couple of months. We like to run about 15 per cent extra capacity into the grid for emergency reasons, for peaking and stu like that. When Northland comes on, it will take us up to 20 per cent, but it will quickly come down to what our target is. There’s requirements. We belong to the North American Energy Group, which has very speciďŹ c requirements that you have to have to interact with other jurisdictions. It’s very strict, so we have to pay attention to that. January 2013 we had another peak, about 3,400 (3,379 MW to be exact) megawatts peak. PN: Is there anything else you would like to add? RW: We have a good plan for at least the next

10 years, and we’re putting together our thoughts for what we need for the next 40 years. We will be looking at all options in order to ensure we have the power at an aordable price for the province.

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A20

PIPELINE NEWS May 2013

Ledcor ConstrucƟon Ltd. is building this new Kramer Cat dealership in BaƩleford along Highway 16. The new 40,000 sq. Ō. facility will be an economic generator with new high skilled employees in demand for sales, parts and service operaƟons. It will have service road access from Highway 4 in BaƩleford.

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A larger Kramer Cat to prowl in Battleford By Geoff Lee Pipeline News Battleford – It’s too early to order a grand opening cake, but Kramer Ltd. president and CEO Tim Kramer is celebrating the ongoing construction of the new Kramer Caterpillar dealership in Battleford. The 40,000 sq. ft. complex is expected to be completed this fall and will replace the existing dealership located on Highway 4 in North Battleford. “We’ve always had high expectations when we do buildings. Hopefully, we’ll be there by the fall,” said Kramer by phone from Regina. The existing location acquired in 2006 has already run out of room to handle growth in Kramer’s parts, sales and service operations. “We’re growing. That whole northwest has been fantastic,” said Kramer. “We’ve been very lucky. Oil and gas has been part of it, and agriculture is also strong.” Kramer Ltd. operates seven Caterpillar dealership locations in Saskatchewan that sell and service a range of equipment for the agriculture, lift, energy, truck, heavy construction, mining, and compact construction markets. The company also operates Kramer Rents – the Cat Rental Store in Saskatoon and Regina. The North Battleford dealership was initially acquired to serve the agriculture market, but as soon as the sign went up, so did the demand for the Caterpillar line of construction equipment. It’s the same story told at some of Kramer’s other locations in Saskatchewan, as the province’s economy is firing on all cylinders. “The Kramer Kindersley branch was originally opened as an agriculture store, and the first thing that comes rolling in is a D8,” said Kramer. “That’s just how it is. As soon as we put a sign up, people just start bringing in their equipment. They show up because we’re available.” Kramer has benefited from strong growth in construction activity in the Battlefords. ɸ Page A21

The Kramer Cat dealership in North BaƩleford sold and serviced a ton of Cat motor graders for snow removal and construcƟon jobs this past winter. Heavy construcƟon sales consultant, Jim Barks is looking forward to relocaƟng this fall to a newer and larger facility in Battleford.

PIPELINE NEWS May 2013

A21

These Cat skid steers are popular sellers among the construcƟon and industrial equipment oīerings at the Kramer dealership in North BaƩleford. The dealership is relocating this fall to a new 40,000 sq Ō. facility in BaƩleford.

ɺ Page A20 That growth is reflected in building permits valued at nearly $6 million that were issued by March 2013 in North Battleford. This compares to approximately $7 million for the same period in 2012. Also helping to drive sales of Cat equipment is robust oil and gas construction activity in the region. Husky Energy, for example, is constructing a 10,000-barrel per day steam assisted gravity drainage project at Rush Lake, just north of Paynton about 70 kilometres to the east. The strong regional economy is supported by a population gain of 10.3 per cent for Battleford in the last census in 2011 and a 6.3 per cent increase for North Battleford from the previous population count in 2006. “We should have been there 25 years ago,” said Kramer about the Battleford area. “We’ve been really fortunate. We’ve got a really fantastic team there. They’ve adapted well from agriculture to heavy construction. “Our employees are looking forward to the new facility. It’s a real boost for morale, and it’s a real boost for the morale of our customers. “They’re the ones who are going to win with our new Battleford facility. Customers have to win every time,” added Kramer. The new dealership will be ideally located to attract agricultural and industrial traffic from all points on the compass serving the Battlefords. The facility is being built by Ledcor Construction Ltd. on a 153-acre parcel of land with Highway 16 frontage, north of the Battleford West subdivision. “I’m a land developer now and I don’t want to be,” said Kramer with a laugh. “I only need about 30 acres, but I had to buy the whole thing to get the piece that I wanted.” The site will be accessed from Highway 16 from the west or from a new service road that will connect the facility to Highway 4 in Battleford. “We’re developing it. We put the road in and the water. We’re going to make it into an industrial park,” said Kramer. The project is well timed with the completion last August of the twinning of Highway 4 through Battleford, south of Highway 16 to the Battle River Bridge. That highway accommodates upward of 7,100 vehicles per day. Kramer borrowed from the real estate mantra of location, location, location to explain the reasons for selecting the Battleford property for the new dealership. “Exposure, exposure, exposure,” said Kramer. “You can’t beat the location. “The new Kramer Cat dealership will be the first thing people see coming in from the west.” The new facility will include a huge service department, a parts department and some office space along plenty of room outdoors to display and park equipment. “We’re not much for showrooms. Our products are sold from the dirt,” said Kramer. Kramer Caterpillar owes a lot of its success to servicing what it sells including to local customers • Boom & Knuckle Pickers such as Strike Energy Services Inc. in Battleford •15-50 Ton/165’ Reach which operates a fleet of Cat construction equip• Winch Tractor c/w Lo-Boys ment. • Tandem & Tri-axle Trailers “Parts and service sell everything. Without • Tank Cradles c/w Hydraulic Arm service you can’t go anywhere,” said Kramer. • Pilot Trucks “Customers are demanding more and more. As • Double Man Basket the equipment evolves and becomes more sophistiPICKER & OILFIELD HAULING SERVICE cated, the local guys won’t be able to fix it. Custom• ISN & Comply Works Member Proudly serving Lloydminster Area for over 20 Years ers will have to bring their equipment to a dealer.” • COR/IRP Certified Kramer Ltd. doubled the size of their Estevan dealership in 2012 and their Swift Current facility Lloydminster, SK/AB • Ph: 780-875-9250 • Fax: 780-875-4148 in 2010. ɸ Page A21

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PIPELINE NEWS May 2013

Diverse mix of products available Éş Page A21 In 2010, Kramer built a 35,000 sq. ft. addition to its Regina service facility where they provide environmentally friendly air ďŹ ltration cleaning and industrial radiator services. Kramer Ltd. represents numerous other product brands and manufacturers including Agco (RoGator, TerraGator and SpraCoupe application equipment plus Challenger tractors) and Bourgault (precision seeding systems). They also sell Mitsubishi, JLG, Lexion, and Master Craft equipment in a diverse product mix. “The market is moving. If you don’t move with the market you die,â€? said

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Kramer. “Whatever our customers tell us to do, that’s we do.â€? Kramer anticipates the new Battleford dealership will help to boost the local economy. “Absolutely, we’re going to have a huge impact. I am sure we will do our bit. Battleford has been very good to work with,â€? said Kramer. Kramer Ltd. bought the land in 2011 when Chris Odishaw was the town’s mayor and a leader who Kramer called “an interesting young man.â€? “He was a real promoter,â€? said Kramer in reference to a pro business attitude that sold him on the decision to acquire the land in Battleford. “We’re fortunate. Everything’s humming along like it’s supposed to be. We’re lucky. It’s all luck,â€? said Kramer about being to grow along with the region. “Now that we’re there, business has really picked up. Everybody’s expanding. With all the oil and gas business going in that area, it’s humming.â€? The new dealership will also be hiring a lot of new employees in a competitive market for skilled labour. “That’s a challenge for us. We’re growing so darned fast. Acquiring the people we need and developing the footprint to match – it’s really a struggle sometimes,â€? said Kramer. “Our company is always on the lookout for certiďŹ ed journeyperson technicians. We also partner with SIAST through their apprenticeship program. “Our recruitment eorts have taken us around the world in search of the highly skilled workers needed to continue to build our qualiďŹ ed team at Kramer. “Our ‘Huge Careers’ campaign and our new employment website will help us with that challenge. “Expansion of our facilities and team members will continue to play a part in the overall well-being of the communities in which we live and work. The future looks bright for all of us,â€? Kramer said.

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PIPELINE NEWS May 2013

A23

Bonnyville show catering to exhibitors

Co-chairs of the 2013 Bonnyville & District Oil and Gas Show, Tanya Oliver, leŌ, and Robyn Ducharme, are catering to exhibitors’ needs based on feedback from the 2011 show. This year’s show will be held June 19-20 at the Centennial Centre in Bonnyville.

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Oliver who is also the executive director of the chamber. “We learned there are so many people that travel to see the show.” At the 2011 show, more than 68 per cent of exhibitors also originated from another region. “We have electronic ‘invites’ for our exhibitors that are going to be customized for them. They can send them to their customers to invite them to attend the show as well,” said Oliver. ɸ Page A24

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That’s the challenge for organizers of the 2013 Bonnyville & District Oil and Gas Show who are going all out to provide exhibitors with an even bigger bang for their buck based on feedback from 2011. “We’ve got high expectations. We did, I think, a fantastic job in 2011. It was our first show. We definitely got a lot of great feedback,” said event cochair Robyn Ducharme who is also president of the Bonnyville & District Chamber of Commerce. “We are taking care of the areas our exhibitors and attendees told us we need to focus on.” This year’s show will take place June 19-20 inside and outside the Centennial Centre in Bonnyville with lots of improvements in store. Tweaks are being made to everything from registration, networking opportunities and shuttle services to increasing the number of quality visitors. “We are absolutely taking care of all of those concerns,” said Ducharme. “We will definitely be looking for feedback again this year to see how all of that ended up working out. “I think our biggest focus is absolutely getting the number of attendees increased. Last time, we had just over 1,200 attendees. Our goal this year is to double that to 2,400 attendees.” One of the visitors could be Albert Energy Minister Ken Hughes, who has been invited to attend the show and banquet. Organizers are partnering with the JuneWarren-Nickle’s Energy Group to advertise the show in their print and online energy publications. “We’ve also expanded our radio campaigns to cover most of the province rather than just the immediate surrounding area,” said co-chair Tanya

40242872•03/06/09

By Geoff Lee Bonnyville, Alta. – It’s not often you get to make a second first impression, especially if the original one still works in your favour.

A24

PIPELINE NEWS May 2013

More and more exposure

Osum Oil Sands Corp. will host an evening barbecue recepĆ&#x;on for exhibitors, aĆŠendees and the media at Moose Lake on June 18, the night before the start of the Bonnyville and District Oil and Gas Show to be held June 19-20.

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Éş Page A23 All potential visitors who pre-register online at the oil and gas show website will have a chance to win a $3,500 travel voucher. Organizers have also contracted the services of Conexsys, an event registration provider of lead retrieval systems, to enable exhibitors to track their networking contacts. Exhibitors can pay to use a hand-held scanner to capture unique customer information from a barcode on identiďŹ cation badges worn by all registered showgoers. “The bar code is unique to each person and exhibitors can just scan it on the badge,â€? said Oliver. “Instead of having to collect business cards, they can just scan. At the end of the show, they will get the database of the people they met.â€? The information will include the person’s name, their company, their position, and contact information number among other data. Changes have also been made to the popular Oilmen’s Room Reverse Tradeshow. The reverse tradeshow allows exhibitors to discuss business opportunities in private with representatives from companies such as Canadian Natural Resources, Devon Energy, Husky Energy Ltd., Osum Oil Sands Corp., and Shell Canada with heavy oil operations in the region. “We found a lot of exhibitors didn’t know it was happening in 2011. We are expanding it to two days,â€? said Oliver. “Exhibitors will be able to pre-register and pre-schedule their appointments.â€? More booth space is available this year inside the Centennial Centre with many ďŹ rst time exhibitors onboard that will give a fresh look to this year’s show. “We are expanding on our reach with difNOW OPEN ferent companies. Word of mouth helped a lot last time,â€? said Ducharme. “Just having the - Located in the Kindersley Mall second show, you are - Open 7 days/week going to have that - Open for Breakfast much more exposure - Check out Lunch & Dinner Menu and Daily Specials - and that many more - Sunday Brunch people talking about it. 306-463-1777 ɸ Page A25

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“I think that’s why we are getting new exhibitors as well.â€? The show will kick o like it did last time, with an evening barbecue and social on June 18 sponsored by Osum Oil Sands at Shaw House on the shore of Moose Lake. The event is open to exhibitors, show visitors and the media with shuttle bus service provided. “It was a fantastic barbecue last time. It’s really showcasing the beautiful Lakeland District that we have here,â€? said Ducharme. “It’s a great place to live and raise a family. It enables us to showcase to these exhibitors from all over the province. What a beautiful area we have.â€? Bonnyville is also a good place to do business these days with companies such as Cenovus Energy, Imperial Oil Ltd, and Osum Oil Sands constructing and expanding heavy oil thermal projects in the region. The show is well timed as the increased oil and gas activity in the area continues to trigger growth since the last show in 2011. “We actually had a quite a few success stories from the last show, people attributing contacts that they made at the show as the reasons why they decided to open new branches in our area,â€? said Ducharme. “That’s what we’re there to do. We are the chamber of commerce. We are there to spur economic growth in our area. “If we get a couple of good stories from a show this size, then absolutely it’s all worth our efforts.â€? Visitors can also expect to hear up to four speakers during two breakfast sessions and two luncheons inside the Centennial Centre. “That’s going to be something new this year rather than having it in the theatre,â€? said Oliver. Exhibitors will also

be encouraged to make use of a new on-demand shuttle service to and from hotels to allow more visitors to drive and park at the show to boost attendance. “We did have shuttles last time that were running on a loop that were very underutilized,â€? said Oliver. “This year, we have some larger shuttles ďŹ rst thing in the morning. At any point, an exhibitor can call us for a ride to the Centennial Centre and we will be there to pick them up right away.â€? Oliver and Ducharme both burst into laughter when asked if there was much work left for their committee to do done before the doors open. “There’s still lots of details to be worked out. We are still working on getting sponsorships,â€? said Oliver who interrupted her maternity leave to pitch in. “We have opportunities available and we’re working on our programs. It’s a really big show. There’s lot of stu to do. That’s why I came back early.â€?

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A26

PIPELINE NEWS May 2013

Diamonds in the rough for women golfers Lloydminster – Who needs a men’s green jacket when you can play golf for diamonds as a woman? Diamonds on the Green is the alluring slogan of the 8th annual PWM Steel Petroleum Golf Classic organized by the Ladies of the Patch committee. The event will once again be played at the 18-hole Rolling Green Fairways in Lloydminster on May 24. There will be sponsored diamond earrings at each hole up for grabs. Those fabulous prizes will be contested by up to 288 women this year compared to 156 a year ago, thanks to a new par 3 format that should put an end to the perennial waiting list. “A par-3 allowed to us to include more golfers in the tournament because we’ve got such a long waiting list each year,â€? said lead organizer Debbie Horbach. “We thought we’d try that to see if we could accommodate more golfers.â€? The count was just over 240 and rising when Horbach was contacted on April 15. “We knew that was going to happen because we’ve had such an extensive waiting list every year and now everybody’s happy that they can get in,â€? she added. Unlike last year, when Horbach headed into the event fresh from a golďŹ ng vacation, she admits she will be coming in cold this time around. “I haven’t had a stick in my hand since last fall. We didn’t go golďŹ ng this year, unfortunately,â€? she joked. Scores and skill are secondary for all of the players who are motivated to support the event as a charity fundraiser for the Lloydminster Sexual Assault Centre that received $25,000 in 2012. Even more money could be raised this year thanks to a $10 hike in registration fees to $160 per player and the usual strong sponsorship support for the cause from oil and gas companies that comes as no surprise to Horbach. “I think the big reason is that this is the only event that is held for women that work in the oilpatch,â€? she said. “I think that they understand the value that women contribute to the oilpatch. They are more than happy to contribute and make sure this event is a

Flower power worked for these golfers at the 2012 PWM Petroleum Golf Classic at Rolling Green Fairways in Lloydminster. Pictured from leĹŒ to right are Lana Thiessen, Tennille Tiedeman, Katherine Hemsworth and Danielle Morgan. This year’s event will be a par-3 with up to 288 women golfers taking part compared to 156 last year. Everyone is hoping for a repeat of warm, sunny weather for the May 24 toruney. File photo

success.â€? The switch to the par-3 format is well timed with the o-season construction of a new banquet hall at the golf club that can accommodate up to 350 people for large functions such as weddings. “We couldn’t get more girls before because nobody had a big enough building to house us for the supper,â€? said Horbach. “They put up a new structure out there this year to accommodate that many people. Everything just worked in our favour.â€? Fingers are also crossed that oďŹƒcials will have the course ready in time – weather permitting. “They can only promise what they can promise. They have to wait for Mother Nature and hope like heck she co-operates,â€? said Horbach. “Last year, there was lots of water, but the weather was warm. We’ve had snow, we’ve had sleet, we’ve had rain, we’ve had everything. “Let’s hope for some sunshine for a change.â€?

Atco Electric to host NAOSH BBQ Lloydminster – Are you as safe as you think? That’s the theme of the 2013 North American Occupational Safety and Health (NAOSH) Week, May 5-11. It’s also a question for employees, employers and the public to ask themselves during NAOSH week with the focus on the importance of preventing injury and illness in the workplace and at home. According to the Alberta Workers’ Compensation Board, 145 workers in

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the province died as a result of workplace injury or illness in 2012. WorkSafe Saskatchewan recorded 60 workplace deaths in 2012. NAOSH week follows the annual global Day of Mourning held on April 28 for all workers who have been injured or killed at their place of work. The City of Lloydminster chose to pay tribute to injured or fallen workers during a Day of Mourning ceremony at City Hall on April 26 with ags lowered at half mast and a moment of silence. NAOSH activities in Lloydminster will be led by Atco Electric and the Lakeland Regional Safety Committee that are providing workplace safety information during an open house and free barbecue for the public. The event will be held at the new Atco building at 6202-63 Street on May 10 from 11 a.m. to 2 p.m. Any local organization or company is invited to participate and set up a table promoting awareness, products, services and safety related messages. NAOSH week is now into its 17th year and is celebrated in Canada, the United States and Mexico to highlight the importance of reducing injuries and illness in the workplace, at home and in the community. The event is managed by the Canadian Society of Safety Engineering, the Canadian Centre for Occupational Health and Safety, the labour program of Human Resources & Skills Development Canada, and the American Society of Safety Engineers.

PIPELINE NEWS May 2013

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PIPELINE NEWS

SECTION B May 2013

Sun powered doghouses worth a howl

Brent Maƫce, general manager and owner of Northern Truck & Industrial Supplies Ltd. an associate Napa Auto Parts store in Bonnyville, has teamed up with local entrepreneur Eugene Prochinsky to launch B.E. Solar SoluƟons Ltd. during the Bonnyville & District Oil and Gas Show June 19-20. Maƫce stands in front of an Aurora 1530 solar powered LED lighƟng system for oī-grid oilĮeld sites. On the leŌ, is the pole for an EnerGen 1720 solar lighƟng unit for residenƟal use. Both units are made by Carmanah Technologies CorporaƟon.

By Geoff Lee Bonnyville – Visitors to the Bonnyville & District Oil and Gas Show June 19-20 can watch a new business launch taking place at Booths 534 and 535. Entrepreneurs Brent Mattice and Eugene Prochinsky are counting down the days to officially lift off their B.E. Solar Solutions Ltd. their product utilizes solar energy to power doghouses, outdoor safety lighting and security trailers. “We think the product we have is something that’s going to be looked at quite seriously by many companies, not only for safety concerns, but for lighting situations in areas that are impossible to run grid lighting to,” said Mattice. “The oil show is going to be a good thermometer to feel where we can take this company to. I have no doubt this is going to be a strong viable company in the area.” B.E. Solar will be a separate business for Mattice, the general manager and owner of Northern Truck & Industrial Supplies Ltd., which operates as an associate Napa Auto Parts store, and for Prochinsky, who owns Breday Trucking Inc. “We want to walk before we run and see what kind of interest the oil show generates for the company and really use it as our launch,” said Mattice. Mattice has been selling solar systems for recreational vehicles at Northern Trucking while Prochinksy has the equipment to haul doghouses into the shop where those initial installations have taken place. “We work with Ensign Rockwell and we are working with some other local service rig companies,” said Mattice. The idea for a separate business was born after a service rig manager from Rockwell wanted to know if Mattice could install a solar panel that would just run his laptop. “That’s when I suggested ‘why don’t we try to put a solar system on the doghouse?’ We were successful in doing the first one, and we have done 11 so far,” he said. “When we laid out the benefits we thought we could produce, that became a smart business decision for them as well.” The solar system generates 450 watts of continuous power to run the lights, coffee pot, microwave and a computer, saving the client about $1,500 a month in fuel and maintenance costs to run a generator. ɸ Page B2

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PIPELINE NEWS May 2013

Why run a gen set to power a coffee pot Éş Page B1 “We just felt we could put a solar system on a doghouse to eliminate the use of running the big generator,â€? said Mattice. A typical doghouse will burn about 250 gallons of diesel fuel a month, while solar can be used for six to seven months a year before the generator is needed for heat. “There’s huge savings for a company, both on the wear and tear of the generator, and there is also the quietness of the unit,â€? said Mattice. “You can go in the doghouse and have lunch and not have the roar of the generator.â€? A doghouse solar package includes three solar panels installed on the roof, and they are hooked to three batteries, a solar charge controller and

an inverter similar to an RV installation. “We install the system in our automotive shop so we can bring the whole unit inside and put it together in about a day. It’s an eight hour install,â€? said Mattice. “We put an automatic generator start in the doghouse. With the inverter, we tie into the electrical panel in the doghouse. Everything looks like a factory install.â€? The complete system costs about $9,000, with a payback period over the ďŹ rst six to eight months of use. “There are a lot of service rig companies out there that run doghouses. Once they see what we can do, I’m pretty sure that we’ll probably get a phone call,â€? said Mattice about the sales potential. ɸ Page B3

The yellow components in this solar-powered doghouse include, leĹŒ, an automaĆ&#x;c generator starter and on the right, a charge controller on top of an inverter and three 12V AGM baĆŠeries. On the roof are three solar panels. Photo submiĆŠed

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PIPELINE NEWS May 2013 ɺ Page B2 All of the solar products to be sold by B.E. Solar are powered by new AGM (absorbed glass mat) sealed batteries. An AGM battery has the electrolyte absorbed in a fibreglass mat separator and no silica gel is necessary. The glass mat absorbs and immobilizes the acid while still keeping the acid available to the plates. This allows a fast reaction between acid and plate material. The batteries are perfect for the company’s solar-powered oilfield safety lights that are equipped with motion sensors. Called the Aurora 1530 or the 1720 EnerGen residential light is made by Carmanah Technologies Corporation. The 1530 is ideal to light up lease sites or disposal sites or any remote facility off the power grid. The solar panels and LED lights are optimized for

This solar-powered doghouse was installed at Northern Trucking & Industrial Supplies Ltd., an associate Napa Auto Parts store in Bonnyville. A complete installed system costs about $9,000, with a quick payback up to eight months if installed in April to get the maximum use from it during the Įrst year. The system can save up to $1,500 a month in generator fuel and maintenance costs. Photo submiƩed

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northern latitudes. “We can put a light in the middle of nowhere. You’ve got a place to work without having to use a flashlight,” said Mattice. “It’s a safety tool and a comfort to have light.” Lighting for farms and acreages are other potential applications for the 1530 solar system. The solar panels and batteries are mounted on a pole that attaches to a screw pile anchor base that can be easily uninstalled when operations relocate with minimal ground disturbance. The 1730 solar powered LED light can be used for a variety of applications such as parking lots and walking trails – anywhere grid power become too expensive to consider. B.E. Solar can’t fit a doghouse into their oil show booth, but a mobile solar powered surveillance, lighting and communication system from Ensol Systems will be the attention getter. “Solar security trailers are an innovative product for the oilpatch that have not been seen in this part of the county yet,” said Mattice. “We have mobile security trailers that are run 100 per cent solar. They are compact trailers that we can move anywhere because we have both cellular and satellite communications.” The units come with a high definition IP (Internet protocol) camera with pan, tilt and zoom capability, high intensity LED lighting and remote viewing capability by smart phones and computers. “Vandalism and theft in the oilpatch is at a point now where, in a lot of cases if a rig finishes a well and there is no a job for that rig for a week or two, they can’t leave it on the site because of vandalism,” said Mattice. “We can put a trailer in front of that rig and it’s being watched 24/7 without the expense of having to move that rig to a secure location.” The trailer, itself, can’t be taken easily by thieves since it has a GPS system and the wheels can be locked. “It would take them longer to figure out how to hook up the trailer to the truck before security got there,” said Mattice. Mattice has owned Northern Trucking for 16 years. Northern Trucking is where he and Prochinsky will operate B.E Solar this fall as a standalone shop – if their launch hits the target market. “I think Alberta has been a little behind the rest of the world in regards to solar energy because of the abundance of natural gas and fuel that realistically, until the last few years, have been pretty easy to afford,” said Mattice. “I think the world is looking more to the green side, and I think we have a really good solution for the oilpatch to look at.”

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PIPELINE NEWS May 2013

New NDP leader discusses energy policy By Brian Zinchuk

Cam Broten is the new permanent leader of the Saskatchewan NDP. All of his predecessors, save one, eventually occupied the premier’s oĸce in the Legislature. Photo by Brian Zinchuk

Regina – On March 10, Saskatoon MLA Cam Broten was elected leader of the Saskatchewan New Democratic Party. Broten replaces previous leader Dwain Lingenfelter and interim leader John Nilson. At 35 years of age, Broten represents a generational change for the NDP. All the competitors for the leadership were similarly aged. Broten won over Ryan Meili by 44 votes. MLA Trent Wotherspoon also ran for the leadership, while economist Erin Weir dropped out of the race prior to the final convention. While Lingenfelter was an executive with Nexen between his many years in elected office, Broten does not have similar experience with the oilpatch. Twelve years younger than Premier Brad Wall and with likely a long political career ahead of him, Broten is in a special position. Only one permanent leader of the Saskatchewan NDP prior to him has not become premier at some point. That was Dwain Lingenfelter. Pipeline News met with Broten in his office at the legislature on April 11 to discuss his energy policy plans for the future. Pipeline News: Where are you from and what do you do? What riding do you represent? Cam Broten: I’m Cam Broten. My home is in Saskatoon. I represent the constituency of Saskatoon-Massey Place. Born in Regina, I grew up in northern Saskatchewan and in Saskatoon. I went away for school out of province for a while. I came back to Saskatchewan and did schooling here too. I’m married, and my wife is from the Swift Current area, a family farm. Her parents still farm, and so we get down to the southwest corner regularly. PN: Do you have any energy sector experience? CB: No. I think the best experts in the energy sector are the individuals who are working in the energy sector every day. The approach to leadership I bring is listening to experts and listening to good ideas wherever they come from. That’s the approach I’ll be bringing as leader. I look forward to learning more and listening more, and having a really constructive relationship. PN: What is your plan for Saskatchewan’s energy policy? CB: My approach to politics is where things are working, not to change them. That’s an important point. If we look at the success the energy sector has had over the last years, for the most part, it’s from the royalties put in place by the NDP prior to 2007, and I think generally it’s served the province quite well. ɸ Page B5

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Éş Page B4 That’s an important point to make. There are places where the government can be doing better, doing more. We look at innovation, and the necessity to do more R&D. Obviously the private sector is best at doing R&D, but there’s a role for government to facilitate that, to foster that, to ensure carbon capture projects are successful over the long term. As well as investments in training; we looked at more support for apprenticeship and trades programs so that companies have the ability to expand as they need to, to create the jobs they need to create, and to allow the sector to do well. For policy on energy, Saskatchewan people want, and I support this, they want a better long-term plan when it comes to energy, actually meaning a green and better future – taking real action on climate change, and ensuring we are being as responsible as we can. A lot of that will be through R&D, as I mentioned. It’s also working with industry on improvements that can be made – reducing aring and venting, things that industry also sees the beneďŹ t in doing. These are things the government can work together with industry to ensure we’re taking constructive steps. PN: Former leader Dwain Lingenfelter expressed a desire for the province of Saskatchewan to get back into the oil and gas industries a la SaskOil, especially with regards to gas production. What is your take on this? CB: That’s not a proposal I’m advancing. I think the private sector, last year, did a good job in developing our resources and bringing beneďŹ ts to Saskatchewan people, creating jobs. That’s very important. It’s necessary to continue to support that work. I believe in a strong private sector in the energy sector, that’s very, very important. And I believe in strong Crown corporations, too. I think the Crowns that we have should be strengthened, and improved. It’s about striking the right balance. Tied to the second question, it’s about a long-term, sustainable plan. PN: In the ďŹ rst nine months of 2012, Saskatchewan drilled all of nine natural gas wells, down from over 2,700 ďŹ ve years before. What, if anything can, or should, the province do about these low numbers? CB: I think the decrease in drilling is largely tied to the world price for natural gas. As we see a change in price, we’ll inevitably see a change in the activity. That’s a positive thing. I have an open ear and open door to listening to good ideas, wherever they come from. If there are good ideas that we should be considering, I’m looking forward to having those discussions, listening and seeing how those plans could improve the situation. I haven’t had explicit recommendations on this, but I’ve also had this job for about one month, and have many more people to meet and talk to and build relationships with. We’ll see what happens. PN: What is your take on federal NDP leader Thomas Mulcair’s assertions that Western Canada’s strong energy sector has resulted in a case of “Dutch Disease?â€? What impact does this have on Saskatchewan, if any, and is there anything you would do about it? CB: I’ll let economists have the economic debates about jargon and sort that out. What I want, and what Saskatchewan people want, is sustainable development of our resources. We recognize they bring beneďŹ ts, bring jobs, bring proďŹ ts to our province, and recognizing we need to do better when it comes to a long-term plan for sustainability and actually improving the environment.

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Those are the realities. Let the economists sort out the debates, but the energy sector is hugely important to Saskatchewan, and to the entire country, bringing positive outcomes all over Canada. I think that’s very important to recognize. PN: Now that Cenovus has bought Oilsands Quest’s assets, Saskatchewan oilsands development seems much more likely. What is your stand on this? ɸ Page B6

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PIPELINE NEWS May 2013

No return of SaskOil considered; supports private sector ɺ Page B5

Cam Broten is the new permanent leader of the Saskatchewan NDP. All of his predecessors, save one, eventually occupied the premier’s oĸce in the Legislature. Photo by Brian Zinchuk

CB: We need to develop our resources in a sustainable, responsible way. That obviously applies to oilsands as well. The exploration permits were actually done under the NDP government in 2005. This is something we have supported. In 2010, I chaired our policy review process as a party. We discussed oilsands. What people in the party have said, and what I have said, is if you develop the resource, you need to do it right. You have one chance to do it right. You need to avoid some of the missteps Alberta has made. We need to do a better job of it. It needs to be done with the most stringent regulations, the best triple-bottom line, in ensuring the overall strategy, the overall discussion of hour we’re creating a greener future, how we’re going to address climate change and greenhouse gases. The Saskatchewan situation is unique, and for that reason, we need a unique Saskatchewan response. The take-home message, and the predominant message that I have and the Saskatchewan people have had, is we have one chance to develop our resources and we need to do it right. We need to be thinking long-term. We need to have responsible development, keeping the environment in mind, and also ensuring we’re bringing good benefits to Saskatchewan and we’re using the benefits of the wealth created in a responsible way. ɸ Page B7

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PIPELINE NEWS May 2013 Éş Page B6 Something the party supports and I support is the creation of a Bright Futures Fund, a sovereign wealth fund similar to Norway, so that we’re thinking long term. We’re ensuring that Saskatchewan people now and for generations to come will beneďŹ t for the resource. PN: In regards to a sovereign wealth fund, do you have any speciďŹ c ideas? What is your vision? CB: We need to start with the process. It’s not something that can be entered into lightly. We need a good plan, because, yes, it has eects on debt payment, on the provincial situation. But if we look at jurisdictions where it has worked well, like Norway, they took early action. They had a clear plan of where they wanted to go. It’s brought huge beneďŹ ts to the country, and has allowed them to have the type of education, health care and roads that they want. We’re continuing to do work as a party on this. I want to do more work myself. I think it needs to be a priority. The predominant message I hear from Saskatchewan families is we need a smart growth plan. We need long-term, sustainable thinking. PN: The Saskatchewan Party has essentially said, “We need to pay the mortgage ďŹ rst, then we’ll put stu in savings.â€? Do you think a sovereign wealth fund should wait until Saskatchewan’s debt has been retired, or do you think we should start doing something now? CB: I think we should start looking at earlier options in a constructive way. Good habits with spending are started earlier on. We need to ensure we’re making the right decisions. We’ll be doing more work as a party, we’ll be talking to many more people in the province and determine the best way forward. I keep hearing from Saskatchewan people this is a priority.

It’s a key model (Norway) that we’re looking at for lessons learned. It’s not the only example. But as with every situation, I’ll listen to ideas wherever they come from, and that’s the approach we’ll be taking. PN: Where do you stand on the proposed Keystone XL and Northern Gateway pipelines? CB: On Keystone, the longstanding caucus position we have is that we support Keystone. We think there’s a responsibility in our province to have the highest return for our resources. We think Keystone would help us receive more for what we’re producing, and the fact there has been a triplebottom line assessment. That’s absolutely vital to highlight. Based on that, our position is we support Keystone because it will bring great beneďŹ ts to the province. Gateway is a very dierent situation. In my view, there are too many unanswered questions about the pipeline, and especially about the shipping, along the precarious West Coast. There hasn’t been the assessment that’s required. There are too many reservations I have to support Gateway. The reservations I have, based on environmental concerns, are too great to support it at this time. There are too many unanswered questions. This isn’t a Saskatchewan pipeline. It goes across other provinces, and we need to talk to those provinces as well and (they will) make the best decision for them. PN: But if Cenovus develops the Saskatchewan oilsands, that will have to go into a pipeline, Keystone, or Alberta Clipper or Enbridge mainline or one of the others. CB: The Gateway situation is dierent, with respect to environment, the assessments that occurred, and with respect to the destination of the product and how it can be safely shipped. It’s a very

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dierent situation. PN: Right now the TransCanada natural gas mainline is running half-empty. They’re looking at converting one of those pipelines to oil usage to ship to Eastern Canada. What do you think of that prospect? CB: The west-east pipeline is something we support in principle, recognizing that the rigorous, triple-bottom line assessment needs to occur. In the same way we think Keystone can bring beneďŹ ts, a west-east pipeline could as well. But there needs to be the proper environmental control. We need the highest assessments in place. There’s the added beneďŹ t of value-added jobs in Canada, which is a possibility to recognize also. ɸ Page B8

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PIPELINE NEWS May 2013

Triple-bottom line to be considered for pipelines, oilsands Éş Page B7 PN: You’ve mentioned triple-bottom line several times. How do you deďŹ ne a triple-bottom line? Environmental, economic and social. When we look at projects, there’s a good economic basis for them, and that it brings a net beneďŹ t to the economy. Environmental; recognizing that the right controls are in place, the right regulation, and the right plan to ensure that it’s safe and done in a responsible way. Social; the fact we need jobs in our communities and there needs to be beneďŹ ts for people. PN: All four leadership candidates represented a substantial generational shift for the Saskatchewan NDP. What does that mean from your perspective? CB: It’s a new generation of NDP leadership. It’s really exciting because, when we went through the leadership process, we had tons of young people

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come into the party and be active. Young people, combined with the veterans that have been around for a while, is a great mix for the party. I think it’s exciting. There’s a feeling, a mood within the party, that we’re on the move, that positive things are happening. We want what’s best for this province, developing it so that it brings beneďŹ ts to people, that families can do well, and that we’re responsible to the environment. PN: Do you have any alternative energy policies? CB: This is part of the overall plan for sustainable thinking and a longterm strategy. We need to do better as a province in ensuring we have a greener future, in addressing climate change, in reducing greenhouse gas emission. In an earlier question, talking about a strong private sector and a strong Crown sector, I think there are things we can do with Crowns, where SaskPower can provide a stronger leadership with respect to expansion into renewables. Doing things like ďŹ xing the net metering program, so there’s a better incentive for individuals to feed into the grid – those are some of the steps we could be taking, SaskPower could be taking. PN: What is your take on the recent budget and oil revenue assumptions? CB: When we talk about a policy on energy, the important thing is to have an approach with no surprises. It’s a problem when there are signiďŹ cant changes introduced in the budget, without the proper communication and relationship with the industry. What the industry needs to do well is stability and predictability so a company can operate its business, plan for expansion, create new jobs, plan for the development of our resources and do the R&D that is needed. When there’s a change to the royalty structure is a surprises to industry (referring to the Saskatchewan Resource Credit), it causes concerns. That’s not predictable. That’s not stable. We need to run the correct, no surprises approach. It speaks to an approach. The approach that is needed is one of no surprises, one of communication and allowing for the proper communication to occur.

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PIPELINE NEWS May 2013

Catalyst to turn heavy oil to light oil „ By Geo Lee Calgary – Bayshore Petroleum expects to complete a 350-barrel per day heavy oil facility near Meota Saskatchewan this year to convert heavy oil into light oil products. The US$9.5 to $10 million pilot project will utilize a proprietary catalyst developed by CCC CanSino Corp., a Canadian research and development company in Calgary. The catalyst can work to convert heavy oil to diesel quality light oil as fuel products or as diluents. Calgary-based Bayshore anticipates that due to its simple design, the pilot upgrader could be in operation by late summer or early fall. The company has signed a Memorandum of Understanding with CanSino for a 10-year licence agreement to use their catalyst in oilsands applications to upgrade bitumen to diesel quality light oil, synthetic gas and clean sand/coke. If the catalyst works

in Meota as planned, it will help Bayshore achieve its strategy to acquire and operate an oilsands property in Alberta in conjunction with a state owned or private Chinese investor. Bayshore currently has conventional and unconventional oil and gas prospects in Western Canadian. The laboratory tests on the catalyst that were conducted in China on Athabasca oilsands and other oilsands in the world, delivered excellent oil and gas yield according to the report. Tests show the cold catalytic cracking process can be operated at normal pressure through low temperature heating and leaves only clean residue sand, in addition to the light oil and synthetic gas after the upgrading process. CanSino said the low temperature catalytic process does not require hydrogen addition and is a simple pyrolysis process with reaction time less than three hours.

That company also reports the catalytic retorting process can yield 10 barrels of diesel quality light oil treating with a 0.2 ton of catalyst per 10 tons of oilsand. CanSino believes that high yield of the diesel quality light oil which has a higher economic value, and the low catalyst cost, makes the process a very proďŹ table and aordable technology for oilsands applications. In addition, they believe the catalytic process can be used to replace diluents to upgrade the bitumen/ heavy oil into valuable fuel oil on site. The fuel oil, in turn, can replace more expensive commercial diesel fuel. The processed diesel can also be used as a diluent in the heavy oil industry. The process can also provide a source of dry synthetic gas onsite for future steam-assisted gravity drainage or SAGD thermal operations in the oilsands. At Meota, Bay-

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shore has an MOU from a private Saskatchewan heavy oil producer to purchase heavy oil from them and process it into diesel fuel quality product oil. Bayshore will construct the upgrading facility to permit capacity expansion to 1,000 barrels of heavy oil (10 API) per day in conjunction with the operator’s ďŹ eld development plan. The company also has until July 31 to purchase up to 50 per cent of the heavy oil lands that total 9,600 acres. The cost of the full build-out is $50 million according to Bayshore’s project cost estimates for 2013-14. The total cost would include acquiring existing reserves and land from the private operator and the cost of participating

Bayshore Petroleum plans to use a cold catalyĆ&#x;c cracking catalyst to convert heavy oil produced near Meota, Sask. into diesel quality light oil.

in exploratory drilling with the operator. Bayshore began the first quarter of 2013 with one drilled and cased light oil well near Radvillle in southeastern Saskatchewan and had plans to drill four more wells in the area by July.

Each well will have the potential productivity of 75-80 barrels per day. In December, the company also announced plans to acquire some medium oil properties from a private company in the Manitou Lake area.

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PIPELINE NEWS May 2013

Environmental regulations drive NRGreen cogen project „ By Brian Zinchuk ConstrucĆ&#x;on is underway at the Alliance Pipeline Windfall compressor staĆ&#x;on near Whitecourt, Alta. Alliance is implemenĆ&#x;ng it’s ÄŽĹŒh heat recovery power generaĆ&#x;on system on its mainline, with NRGreen Power as the operator. Photo submiĆŠed

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Calgary – Lessons learned in Saskatchewan are being implemented in Alberta as NRGreen Power implements another heat recovery power generation system, this time at Alliance Pipeline’s Windfall compressor station, near Whitecourt. Alliance is the pipeline system, while NRGreen is an independent power producer that handles power generation created from its co-generation installations on Alliance compressor facilities. In 2009, NRGreen Power built its ďŹ rst heat recovery power plant at Alliance’s Kerrobert compressor station in response to a SaskPower green energy program. Over 2010 and 2011, that program was expanded to the three other Alliance compressor stations in Saskatchewan at Loreburn, Estlin and Alameda. NRGreen built all four heat-into-power units using Israeli technology, and each is capable of generating ďŹ ve megawatts of power. “All told, we make 20 megawatts of green power,â€? said Jim Walsh, vice-president of operations for NRGreen and vice-president of system optimization for Alliance. Alliance requires approximately 400 kilowatts per compressor station site, with a total draw in Saskatchewan of 1.5 to 1.6 megawatts. That means nearly all the power NRGreen generates more than osets Alliance’s needs and is available for sale. Walsh explained that the heat from the compressors is what drives the system. “All (compressors) utilize gas turbines and generate a considerable amount of heat in exhaust,â€? he said. A gas turbine is essentially a jet engine. This form of engine is not only used in planes and helicopters, but also in compressors and M-1 Abrams main battle tanks. As one can imagine, the heat coming o the exhaust is intense. A 2007 SaskPower request for proposals for green energy got the ball rolling for the Kerrobert project. While the system is now running well, providing “good baseload powerâ€? with 99 per cent utilization rate in the ďŹ rst quarter of 2013, it wasn’t always that way. “We had some lining-out issues,â€? Walsh said, adding such issues are normal. The Israeli technology, from Ormat Technologies, was primarily used for geothermal applications in warmer climates, drawing hot water from the ground, and feeding heat exchangers with a pentane loop. Some companies had used the system to recover heat energy from gas turbines. There was little cold weather experience. ɸ Page B11

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Éş Page B10 The primary components are exposed to the elements in the Saskatchewan installations. They ended up with premature failures of some components, including seals, bearings and disks. Colder air is also denser air, which means a turbine can produce more power because it essentially has more fuel. This is why a helicopter can carry a heavier load in a cold weather environment than over a hot desert. The result was the possibility of overpowering the turbines in the compressor stations. The system used to recover heat from turbine exhaust is based on the organic Rankin cycle, eectively the same system used in refrigerators. A closed loop pentane cycle brings heat out of the exhaust and then runs through a large heat exchanger, supplying heat to a thermal oil cycle. This, in turn, powers the electricity-producing generator. “In cold months, you have a lot of condenser power,â€? Walsh said. They have since implemented condenser controls. “We have all this behind us,â€? Walsh said.

B11

Alberta installation Now in Alberta, NRGreen is installing a much larger power generation system at Windfall. That site is key, because it’s the point in the Alliance Pipeline where much of the gathering system comes together, and the compressed natural gas is sent down the mainline to Aux Sable, near Chicago. Three pipes come into the station, the largest being 42 inches across. They are combined into one, and the gas leaves the station in a 36-inch diameter pipe at a much higher pressure. Gas coming into the plant is at 700 psi suction pressure, and is discharged at 1,740 psi. ɸ Page B12

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B12

PIPELINE NEWS May 2013

Saskatchewan lessons used in Alberta cogen projects Éş Page B11 The Windfall project is a few months from commencing operations. It is expected to be in service in July. This time, NRGreen went with a General Electric system. The three units being installed at Windfall will generate a total of 14 MW of electricity per hour, enough power for 14,000 average homes, with no new emissions or water use.

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The Alliance Pipeline was designed with much thicker and tougher steel than a typical mainline gas transmission line. This means it normally runs at 1.325 bcf/d, but can handle much more than that. If market conditions warrant, additional compressor stations can be added at the half-way points between each of the existing compressor stations. They were built 120 miles apart, with the system designed for option of adding compressor stations

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so that they would be spaced 60 miles apart. That would bring the capacity of the system up to over two bcf/d. Additional stations would also mean the possibility of additional power generation. If they are to ever be built, Walsh said, “We would deďŹ nitely look into that.â€? Simple things can be done during initial construction of new faciltiies that would facilitate more co-generation power opportunities. But with the depressed price of natural gas, and a strong push to ship additional production to the West Coast for liqueďŹ ed natural gas exports, such expansions are unlikely at this time. The main driver for the Windfall installation is not so much making money from the sale of electricity as it is addressing greenhouse gas emissions regulations and concerns. Such projects are “very capital intensive,â€? according to Walsh. The Windfall project is pegged at approximately $70 million. Some of that money is coming back to NRGreen however, in the form of a program designed to encourage greenhouse gas reductions. The Alberta government, over the past several years, has required large greenhouse gas emitters to pay into the Climate Change and Emissions Management Fund. Payments are based on their level of emissions and how much improvement they have made to their system to address emissions. Alberta Environment and Sustainable Resource Development’s web page notes, “Companies that are required to meet the provincial reduction target for greenhouse gas emissions can choose to pay $15 a tonne into the fund for emissions over the target. The Alberta government is responsible for collecting this money for each compliance year.â€? Since the Alliance Pipeline only went online in 2000, its technology is relatively new and there isn’t much room for optimization. As a result, the company has been paying about $1 million into the fund a year for the past seven years. The Windfall project will allow NRGreen to extract its previous payments and use it for the development of the clean energy project. Alberta’s power system is very dierent from Saskatchewan’s, in that its deregulated system means companies can buy or sell power to anyone they want on the grid. NRGreen has entered into a 10-year power purchase agreement for most of the power to be generated at Windfall, with the remainder to be sold on the open market.

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B13

Carmanah’s oilĂ€eld solar reĂ ects global trend Bonnyville – Carmanah Technologies Corporation is on the right side of global eorts to develop low carbon energy sources to limit global warming. The Calgary-based company manufactures and distributes an increasing volume of solar systems for the RV market and has developed a new hybrid solar system for oilďŹ eld doghouses that resemble RVs. The worldwide expansion of renewable technologies such as solar and wind power are credited in the International Energy Agency’s annual report on April 17 for helping to curb the growth of greenhouse gases. The IEA noted that all other energy sources are failing to limit global

warming to a target of less than 2 C this century as power generation continues to be dominated by coal and other fossil fuels. The report notes that from 2011 to 2102, solar voltaic and wind technologies grew by a whopping 42 per cent and 19 per cent, respectively. The trend is in keeping with sales of RV solar kits in Alberta manufactured by Carmanah, which distributes them to installers such as Northern Truck & Industrial Supplies Ltd., an associate Napa store in Bonnyville. Carmanah’s mobile solar systems division makes a complete line of solar chargers, inverters, controllers and power accessories to deliver electricity where grid-power is inaccessible or unavailable. “Within ďŹ ve years there are going to be more registered RVs in Alberta than from Saskatchewan to the Bay of Fundy,â€? said Doug Grafton, sales manager for Carmanah who was reached at the Bonnyville store. ɸ Page B14

Sharing the Energy

This three baĆŠery hybrid solar system designed by Doug GraĹŒon, a sales manager for Carmanah Technologies Corp., features an automaĆ&#x;c generator starter to recharge the baĆŠeries and provide extra power to work the compost toilet. Photo submiĆŠed

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B14

PIPELINE NEWS May 2013

Using solar to save fuel ɺ Page B13 “In Alberta, there is no cottage country. Everybody goes camping here. Everybody has trailers but less than 10 per cent of places have plug-ins, so there has always been a very popular demand for solar energy.” Grafton sees a potentially even bigger market for a hybrid solar system that he designed for an Ensign Rockwell doghouse that, he says, is essentially an RV. The first system for Rockwell was designed and commissioned in September 2011. “Each one of these doghouses has a 20,000 or 25,000 watt diesel generator,” said Grafton.

“They run this 25,000 watt generator to heat lunches up for the guys on the rig and to run a laptop and a coffee maker.” A typical monthly consumption of diesel fuel for the doghouse generator was 1,000 litres of fuel. “I designed a solar and an inverter system, so there will be three solar panels on the roof and an inverter and a transfer switch,” said Grafton. “Between May and September, they can shut that generator off. Solar is charging the batteries and the batteries run the inverter, so now they run the microwave and heat up all the lunches. They can use the laptop all day long.” One of the major selling points of the hybrid

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system is the quick return on investment as the return is realized over one short season. “Just based on the cost of diesel fuel with the unit installed, the return is less than one summer season,” said Grafton. “Also, generators that typically had to be replaced because their life duty cycle was every three years – we’re now doubling the lifespan of the generator because it’s not getting run during the summertime. “I designed an automatic generator starter for a 25,000 watt generator, so if crews are on the rig and out working, and there is 25 to 30 per cent of battery life remaining, it automatically starts the generator. “It runs for three hours until the batteries are replenished and shuts itself off. The system is turnkey. “It’s nice and quiet, it’s green power, and it’s extending the life of the generator. They’re saving fuel. In less than one season, it’s paid for, so the cost savings over the next few years are incredible.” Carmanah has gone on to sell approximately 12 hybrid systems to Rockwell. It is hoped sales to other companies set to soar thanks to the upcoming launch of B.E. Solar Solutions Ltd. during the Bonnyville & District Oil and Gas Show June 19-20. Grafton will be at the B.E. Solar booth to promote the benefits of solar to a widening oil and gas market that includes RV owners who need solar at oilfield work sites and off grid camping. “People who have RVs and know how solar is going to enhance their camping experience – they can translate it now from working in that doghouse,” said Grafton. ɸ Page B15

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Why Bienfait? • Take advantage of the peaceful lifestyle of a small town, situated only minutes from the city of Estevan • Elementary and middle school 2 blocks away, bus service to Estevan Comprehensive High School • Convenience store and bank across the street • Well organized minor hockey in a recently renovated hockey rink • Curling • Indoor pool • Historical community

PIPELINE NEWS May 2013

Éş Page B14 B.E. Solar is owned by Northern Truck & Industrial Supplies owner Brent Mattice and by Eugene Prochinsky, who owns Breday Trucking Inc. Their new solar company will sell and install Carmanah solar products for safety lighting, security trailers and for doghouses. The doghouse installations will be done at the B.E shop that is to be located at Northern Truck & Industrial Supplies, where RV installations have been taking place for over 15 years. With solar there are no worries about running out of power after a few overnight stays where there are no electrical plug-ins. “The addition of a single solar panel would double or triple your time there without any battery worries,â€? said Grafton. Grafton said Carmanah will be looking at expanding the doghouse solar market to other distributors in Western Canada, including the Grande Prairie and Fort McMurray areas. “This year is going to be the breakthrough year spreading out to dierent companies.â€? Carmanah also makes a variety of solar products to run remote SCADA equipment and instruments in the oilďŹ eld.

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B15

Carmanah Technologies Corp., a manufacturer of solar power products, is tapping into a potenĆ&#x;ally lucraĆ&#x;ve market with a hybrid solar system for doghouses. Photo submiĆŠed

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B16

PIPELINE NEWS May 2013

Strike force to beat cancer on bikes

High ÄŽves, ÄŽst pumps and smiles. This is the type of scene that a team of cyclists from Strike Energy Services Inc. will experience at the end of their 200-kilometer ride in the 2013 Enbridge Ride to Conquer Cancer in Calgary June 22-23. These cyclists pictured in 2012 were among 1,854 parĆ&#x;cipants in the two-day event that raised more than $8 million for cancer research and treatment. Strike has an eight person team called the Benevolent Bikers with a fundraising goal of $29,600. Photo submiĆŠed

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Battleford – Corey Chmelnyk is a gung-ho member of a special strike force of cyclists called the Benevolent Bikers on a mission to conquer cancer this summer in a 200-kilometre ride. Chmelnyk is the area manager for Strike Energy Services Inc. in Battleford. He will cycle with the Benevolent Bikers in the Enbridge Ride to Conquer Cancer in Calgary June 22-23. Joining Chmelnyk on the team will be Megan Gerber, Geo Adams, Char Irani, Dustin Moore, Almereau, Prollius, Deanna Ripley and Michael Tumback – representing Strike’s 14 locations in Western Canada. The eight-person team had raised nearly $20,000 by the beginning of April toward their goal of $29,600 for the cancer ride. This year’s ride to conquer cancer is billed as an epic two-day bike ride on new course through the foothills from Calgary to Okotoks that will have a life-changing impact for cancer survivors in Alberta. ɸ Page B17

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Corey Chmelnyk, area manager of Strike Energy Services in BaĆŠleford, is training on an indoor spin bike and race bike to get in shape to join seven other corporate employees in the 200-kilometre Enbridge Ride to Conquer Cancer event in Calgary June 22-23. His team is called the Benevolent Bikers.

In 2012, 1854 cyclists and crew members took part in the ride raising more than $8 million for the Alberta Cancer Foundation. Chmelnyk said event caught the imagination of Strike Energy who put out an invitation to managers to hop onboard for a good cause. “I thought to myself, ‘Geez it would be a darn good thing for me to go into something like that,’â€? said Chmelnyk. “For one thing, it helps out your health and it’s a good thing for everyone. Cancer is a bad thing. Anything I can do to help – I want to help out as much as I can. “It’s my ďŹ rst year. It’s new to me. Everyone gets jerseys and you have to have a good bike of course. It’s going to be an overall good weekend.â€? Chmelnyk owns a mountain bike but he may rent a road bike instead of buying one for the twoday ride. Cyclists will camp overnight in Okotoks on the ďŹ rst day of the ride then bike back to Calgary. Enbridge is the national title sponsor of the event that has raised more than $88 million for cancer research treatment and care facilities across Canada. Chmelnyk is on track to raise the minimum

B17

$2,500 in donations that each rider commits to when they register for the ride. “I’m sitting at around $2,000. I’m pretty close. I have still have three months to go. I’m going to get it pretty easy. It’ll be no problem,â€? he said on March 27. Readers can contribute to Chmelnyk or any of his teammates by logging onto the website (conquercancer.ca) and clicking the donations page for further links. “I’ve got donations from some inspection companies and I’ve asked a couple of our clients,â€? said Chmelnyk. “It sounds like they going to be giving me something. It’s kind of from everyone – clients and third party people. “The donation thing is pretty easy – it’s the training that comes with it.â€? “It’s a 200-kilometre bike ride and it’s not going to be the easiest.â€? Weather permitting, Chmelnyk may be able to squeeze in two months of outdoor rides on his mountain bike before the event, but until then he’s training on a spin bike and a race bike indoors. “I’ve been keeping up with it as much as I can. Trying to do it around work and stu, it’s been a challenge, but I am managing to get by,â€? he said.

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PIPELINE NEWS May 2013

B19

A welder adjusts his hardhat before puƫng it back on. This maze of pipes picks up heat from the inside of the boiler, to the leŌ.

A heart transplant for a power plant By Brian Zinchuk Estevan – If the turbine and generator are the heart of a power station, then Boundary Dam is getting a heart transplant, at least for Unit 3. In the main gallery, one can see the guts of what used to be the “power island” for Unit 3 – the rotor portion of the turbine. From an angle, it looks like a fish skeleton, with a spine and thin bones sticking out. Those “bones” are actually the blades of the turbine that kept the lights running in Saskatchewan for over half a century. Its replacement will keep the lights burning for another half century. On April 12, Pipeline News had a chance to tour the Boundary Dam Power Station and carbon capture facility, one of a series of tours documenting the progress of the $1.24 billion project. The last time was in late December, just

before the workers had gone home for Christmas. A lot has changed since then. “Right now, on the power island side, the demolition started the first week of March for the old turbine and generator,” said Mike Zeleny, project manager, clean coal transition to operations. Zeleny had been the plant manager for Boundary Dam Power Station until late last year. Now the nearly-40-year SaskPower veteran’ job is to get the Carbon Capture project up and running. That demolition is nearing completion. That area is now being prepped for final placement of the new turbine and generator. They’ve already lifted it into place to make final measurements, before moving it aside again to make adjustments. The lift required both of the large overhead cranes that run along the ceiling of the building. ɸ Page B20

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PIPELINE NEWS May 2013

PIPELINE NEWS May 2013

The boiler is so tall, they divided it in half verĆ&#x;cally so that work could take place on two levels. When operaĆ&#x;ng, the large volume inside this boiler is probably the closest thing to hellÄŽre on earth, with coal ground as ÄŽne as Ňour being injected along with air to create heat.

Unit 1 retired, Unit 2 next to go

Éş Page B19 A lot of action is taking place within and around the boiler. Holes are opened up in the corners, and large slabs of ganged-together piping are being installed. “We’re starting to install new steam headers on the boiler,â€? Zeleny said. The massive 14 story boiler has been divided into two levels, so that work can take place in both at the same time. A massive red crane positioned on the south side of the building has been lifting components in and out of the roof. On the north side, another crane lifts pieces up to the south wall, where a large hole has been made to allow the large components of the old power island to be lifted out and new components to be brought it.

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The salmon-coloured cylinder on the leĹŒ is the new generator for Unit 3. The rotor from the old Unit 3 turbine is in the lower right. Photos by Brian Zinchuk

“On the capture island, the last phases of construction are occurring,â€? Zeleny said. “Most of the work is electrical apparatus and ďŹ nishing pipe work. There are two buildings that make up the capture island. The main building, to the south, has seen extensive additions to it. This is the ue gas cooler that will receive the hot gases from the boiler via the massive duct works that were manufactured by SaskArc of Oxbow. The new vent pipe is also in place on top of the carbon dioxide absorber. A series of struts are in place between the main power station building and the main capture building. A large, rectangular duct has been built along the southeast corner of the power station. The struts will enable this ducting to continue to the capture building. Essentially, it’s the exhaust pipe for Unit 3, much in the way your truck has an exhaust pipe leading from the engine to the back of the vehicle. Inside the main capture building, it doesn’t appear a lot has changed since December, even if in fact, it has. Most of the major components were in place by that time, now the work is putting it all together. Many of the process areas are considered proprietary secrets, and photos are not allowed. The north building was but a shell in December. That has changed considerably. A large compressor sits atop a massive network of piping. There are eight stages of compression, and between each stage one ďŹ nds intercooling apparatus. A two-storey electrical room houses the transformers necessary to power the facility. The compressor and other large components draw upon 13,800 volt power, while the rest of the plant uses 480 volt. “Virtually all the components are in place. A few left are in the heat rejec-

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tion building,â€? he said. The heat rejection building contains the new cooling tower, necessary to deal with the large amounts of heat generated and used by the capture process. “Along with the formal construction completion, a lot of other processes are underway so we can start up the facility in time,â€? Zeleny said. “Our training program has been up since February. A large segment of sta training is underway – process training and safety training, and later, environmental training. “Every aspect that needs to be done has been worked on for a while.â€? Two organizations are being put in place to handle the commissioning – one for the power island, another for the capture island. They are composed primarily of SaskPower personnel, but also include vendor sta. StaďŹƒng peak The crunch is on right now, with manpower at its peak. “We’ve had to build a lot of parking lots,â€? he said. New lots stretch to the north towards the access highway coming into the plant. Lunchrooms made of the same sort of shacks seen on lease sites have been hoisted to the roof of the east end of the power station, allowing workers to have a lunchroom without leaving their work area. “We’re still between 1,100 and 1,200 contractors on site.â€? They’re running two shifts now, mostly 10 hours long. SaskPower has resorted to running a large ad in the Estevan Mercury, seeking housing for its permanent sta. “We knew it would be a challenge for a while, with pressure from the oil

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The compressor building porĆ&#x;on of the capture plant is nearing compleĆ&#x;on.

industry. We booked rooms at the ATCO camp and a number of hotels. “They (contractor employees) seem to have found a place to stay. A lot of people took in boarders. A lot of local people have been willing to step up and take in people and let them stay. That’s the only way this was accomplished.â€? PTI Group is currently constructing a large lodge northeast of the city. They were not, however, contracted by SaskPower. “They’re coming on their own volition,â€? he said, adding PTI did receive communication about construction numbers and timeframes. “They were free to bid earlier on (the) accommodations proposal. ɸ Page B21

B22

PIPELINE NEWS May 2013

On time, budget Éş Page B21 Zeleny expects that in May and June, activities will start to conclude on the capture side. In July or early August, there will be a sharp decline in personnel working on the power island. SaskPower is still looking for people for permanent positions. Since Dec. 1, they have hired over 50 new, permanent employees for the carbon capture project as well as replacements due to normal attrition like retirements. Still on time, budget “We’re still on time and the projected start up is still the same as it was for the last year. And we’re still on budget,â€? Zeleny said. “Unit 3 will start up in mid-September.â€?

David Pruden wears a face mask while working in the boiler area.

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A few weeks are expected to be needed for tuning and testing. He expects ue gas to be sent to the capture island in mid- to late-October. The large smokestack will remain. Large dampers will divert Unit 3’s exhaust from going up the smokestack into the large, horizontal ducting previously mentioned, taking it to the capture island. “The stack will still be required for times of outage for the capture island, or if Cenovus can’t take captured CO2. SaskPower’s approach would be to use Aquistore if Cenovus for some reason is unable to receive the CO2. Should neither of those options be available then the stack would be used. However, this is not the project’s intentions, but rather a last resort. The plan is to capture CO2 all the time, once operational. With two suppliers of CO2, Cenovus will have more exibility should there be any interrupts with either. Older unit being retired On May 1, Unit 1 will be retired. “Unit 1 was commissioned in 1960. We did an assessment if it could be converted to carbon capture,â€? Zeleny said. The conclusion: it was too small to retroďŹ t. Under recently implemented federal environmental regulations, coal-ďŹ red units have to retire after 50 years. SaskPower would have had to spend a lot of money to keep it running. At 66 megawatts, it wasn’t worth it. Unit 2, which had a major overhaul two years later than Unit’s 1’s last major overhaul, has slightly longer to go. It will be retired July 1, 2015. It is also 66 megawatts. Since it would be very costly to rip these older units out. Therefore they will be decommissioned, disconnected, and made safe for people and the environment. Then they will just sit there. SaskPower has in recent years added natural gas turbine capacity, including a plant of its own in North Battleford, and another contracted from Northland Power, also near North Battleford. They will, in part, make up for reduction in generating capacity.

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PIPELINE NEWS May 2013

B23

Turnbull Excavating moves to new, larger shop, again

Ed Turnbull visits with guests during the grand opening of the new Turnbull Redi-Mix plant.

Estevan – When your business is excavation and concrete, your new shop should show off some of your work. So when you walk through the offices of the new location for Turnbull Excavating and Turnbull RediMix, you soon notice the gleaming polished concrete floors. “You see it in big stores now, saw cut and polished. Why would you put tile on this? It catches everyone’s eye. It’s a real selling tool,” said Ed Turnbull, owner. The Turnbull operation moved into their new location east of Estevan last September, shortly after the new

concrete plant got going. They hit the ground running, because the new concrete plant had to supply the continuous pour for the new Pioneer elevator that was under construction. They also had work at the clean coal project at Boundary Dam Power Station in short order. That plant went up quickly. “We didn’t start until April 1. In four months, we were up and running,” he said. The concrete plant was working by August 1. A grand opening was held March 28. Even though Turnbull Redi-Mix still had its old plant on the west side of Estevan last fall,

he said, “We used the new one for everything. It can load a truck in four minutes. We can push out 15 trucks an hour. There (the old plant), we were barely getting six. “It allows us to have a fairly big pour on the go and look after the little guy doing a

WHERE ENERGY MEETS SAFETY

driveway.” “Every load, we can change the blend,” Turnbull said. “It’s all computerized. The new system is as up-to-date as we can find. If the computer goes down, we can still manually operate. On the old plant, if the computer went down, you were done.” The new concrete plant has been very reliable, running “pretty much 100 per cent.” They only had one hiccup all last fall, and that was only for an hour. “Life has been a lot easier as far as the stress level for everyone with the new plant,” he said.

Moving to the other side of Estevan makes a big difference for the company’s operations. Most of their aggregates, for instance, originate east and north of the city. “This eliminates truck traffic through the city. Any traffic through town now is to a job. “It’s a few miles, but close to 15 minutes site to site.” When you add up those 15 minutes times dozens of truck trips each day, it amounts to substantial savings. “It was a huge improvement in efficiency. That was the whole motive to move here.”

The new location is also just off the planned new truck bypass for Estevan, which is still several years from fruition despite being announced in 2008. “We’re excited about the bypass, for sure,” Turnbull said. Need more space, again “We were cramped for space at the old facility,” he added. “We have a 22-acre site here. “We’re selling the (old) plant. It’s out of the building and on the market for sale. The cement building is being renovated and will be used by a local trucking company. ɸ Page B24

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B24

PIPELINE NEWS May 2013

Moving to east side reduces truck trafÀc through Estevan

Pat Boyle pokes his hand into the sand, warmed by a “dry steamâ€? system. HeaĆ&#x;ng the sand makes a big diÄŤerence when making concrete in the winter.

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Éş Page B23 The oďŹƒce and shop building took a bit longer to move into, as the focus was on the concrete plant. They have 4,200 square feet of oďŹƒce space and 15,000 square feet of shop space in the primary building, and another 6,000 square feet in an additional building that is used as heated storage space to keep equipment warm. They like to keep most of the eet indoors during the winter. “The eet has almost doubled in the last three years,â€? Turnbull said. “We employ three full-time mechanics. We hired our third when we moved here. We have our fourth coming from Ireland. Last summer we had 10 Irish people working here. Another 16 are coming from the Emerald Isle between April and May. “We’re going to grow from the low 40s to around 60 people by the middle of May,â€? Turnbull said. “Our operations are managed by a team of people with Rob Gatecli as concrete plant manager, Dave Mack as operations manager, Christa Morhart as controller, Chloe Sands in reception, Tyson Turnbull as manager of day to day operations and Jim Neufeld as maintenance manager.â€? With 27 years in business, Turnbull Excavating has made a habit of outgrowing facilities. This is their seventh relocation over that time. Their ďŹ rst location is currently occupied by Penta Completions. They did some work for Penta’s recent expansion. “My ďŹ rst two full-time employees are still here,â€? he said. Over the years, the strategy has been simple – sustainable growth. “We’ve never bought anyone out. A lot of companies buy out their competition.â€? ɸ Page B25

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B25

Éş Page B24 “There’s no real guarantee in this business beyond maybe the year ahead. You can’t ask for much better, with SaskPower, coal and oil, and farming at your doorstep. In years where the oilpatch was slow, we still had stability from the coal and power plants to keep our economy moving.â€? The new Turnbull Redi-Mix plant can load a cement truck in four minutes.

Rob GatecliÄŤ, plant manager for Turnbull Redi-Mix, has a commanding view from his oĸce. The window beside the operator’s desk allows a person to peer down directly to the cement trucks as they are loaded.

Heating aggregate makes for better concrete There’s something dierent about this pile of aggregate – on a cool lateMarch day, with lots of snow around, putting your hand in the sand is like burying it on a warm Florida beach. Steam-heated aggregate is one of the key features of the new Turnbull Redi-Mix plant which held its grand opening on March 28. “It costs some money, but it really works well,â€? said Ed Turnbull, owner. They’ve also included a chiller for water to lower the concrete temperature during hot weather. That feature will be installed in June. Pat Boyle, project manager for the new concrete plant, was guiding tours during the grand opening. “This is a state of the art facility. It’s a brand new plant from Quadra in Vancouver. It’s fully automated. You’ve got indoor aggregate storage. Dierent aggregates are loaded from the outside onto conveyors. “Everything has a backup support. There’s overhead storage for rock and sand. There’s enough indoor storage to do 130 cubic metres of concrete without reďŹ lling – about 16 trucks. We load those trucks in four minutes,â€? he said. On a platform one ďŹ nds tanks for initial water storage for batching. There’s a large boiler for hot water, necessary for winter-time production. Without it, the concrete won’t cure, Boyle said. The water system has a weight measuring system as well. Indoor bins feed a weight hopper equipped with a government-regulated meter. The product is loaded into the truck outdoors on the west side of the building.

Concrete has four components – sand, rock, water, and cement powered – all of which are measured precisely. The cement powder is stored in three 150 tonne bins. They have two types of cement powder in addition to y ash. Automation makes the process greatly simpliďŹ ed for the operator, according to Boyle. Rob Gatecli, plant manager for Turnbull Redi-Mix, has a commanding view from his oďŹƒce. From the window beside the operator’s desk, one can peer down directly to the cement trucks as they are loaded. “I can tell by the sound of the product going it if it’s going to plug or run smoothly,â€? he said. Outside, the steam system pumps “dry steam,â€? with 60 per cent of the moisture content of regular steam, into the sand storage. That way it provides heat, but less moisture than regular steam. “It’ll hold heat for two weeks,â€? Boyle said. They will run the heating system for a weekend, and the sand stays warm for half a month.

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B26

PIPELINE NEWS May 2013

AGM battery use trends upward Bonnyville – It won’t be long before heavy duty AGM sealed lead acid truck batteries outsell regular ooded lead acid batteries in the oilďŹ eld transportation market. That’s the belief of Michael Aspinwall who works for the electrical sales group at Napa Auto Parts distribution centre in Edmonton. He sees the paradigm shift taking hold in the market. “A lot of the manufacturers are switching over now. There are Europeanmade vehicles that have been using AGM battery technology since 2004,â€? said Aspinwall. “Nothing’s going to happen overnight, but as we are seeing more and more vehicles coming with AGM batteries, it’s going to be natural changer.â€? AGM stands for absorbed glass mat, which is a battery with the electrolyte absorbed in a ďŹ breglass mat separator between positive and negative plates. The glass ďŹ bre immobilizes the electrolyte, preventing it from spilling if the battery is tipped over. “It’s like a gel cell variant type of battery. It’s spill-proof and leak-proof. It’s basically a gelled electrolyte,â€? said Aspinwall. “It’s better for the environment, absolutely.â€? During April sales visit to the Northern Truck & Industrial Supplies Ltd., an associate Napa store in Bonnyville, Aspinwall spoke about how AGM technology is turning the battery industry on its head. He said the word is spreading quickly throughout the oilpatch that AGM batteries are more resistant to freezing or cracking than standard lead acid batteries.

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Michael Aspinwall from Napa Auto Parts electrical sales group in Edmonton shows oÄŤ the heavy duty Group 31 Extreme FX 925 AGM baĆŠery in stock at Northern Truck & Industrial Supplies Ltd., an associate Napa store in Bonnyville. AGM baĆŠeries are catching on in the oilÄŽeld with their dual purpose ability to provide plenty of cold cranking amps while funcĆ&#x;oning as a deep cycling type of baĆŠery. Photos by GeoÄŤ Lee

“It’s basically a dual purpose battery that allows the cold cranking amps that customers need to start their vehicles,â€? said Aspinwall. “It also gives them the beauty of a deep cycling type battery so that they can run all of their electronics. “This is why the manufacturers are switching, because of all the electronics that are on the newer vehicles. The regular leaded batteries just can’t up with the draw.â€? East Penn Canada distributes more than 35 dierent models of AGM batteries to Napa, including versions of the 12-V Extreme FX with 925 cold cranking amps (CCA) that are used by heavy duty trucks. The deep cycle battery is designed to provide a steady amount of current over a long period of time. The True North Trail O Highway Club in Grande Prairie recently posted a testimonial from a member about the charging abilities of his new Extreme FX battery on a club forum. ɸ Page B27

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PIPELINE NEWS May 2013

Michael Aspinwall from Napa Auto Parts electrical sales group in Edmonton talks with Brent MaĆŤce about new AGM baĆŠeries for solar-powered applicaĆ&#x;ons.

Éş Page B26 “Picked up a Group 34 Napa Extreme FX today,â€? wrote the member under the user name Northernmedic. “Tired of having to keep charging the Jeep ... may as well have been a hybrid – 950 CCA, and 120 amp reserve capacity. “Not cheap, but should work better than the stocker for winching and the extra lights I have.â€? He bought that AGM battery after reading an earlier endorsement on the forum by a person with the user name of HMFI. “Napa has a new battery that they sold me for my one-ton for the high current demand and rough roads,â€? wrote HMFI. “Night and day dierence compared to factory and AC Delco one I had in there. They were $250 each with club discount, but they seem to be good.â€? Aside from being resistant to vibrations, AGM batteries don’t give o any gas during recharging. The batteries also have a higher charge acceptance during recharges and have a longer service life. Aspinwall also noted more and more vehicle manufacturers are oering start-stop engines for improved fuel economy and they require an AGM battery to make them work eďŹƒciently. The start-stop technology popular in hybrids

idles the engine when the vehicle comes to a stop and restarts the engine when the driver releases the brake or engages the clutch. “Because the manufacturers are not aware of who is going to be driving where, and how many times they’re going to stop, then an AGM is standard under the hood,â€? he said. “It will also have a smaller AGM, maybe sideways underneath the left or right fender, to supplement the starter and help all the electronics that are in these vehicles.â€? In Bonnyville, the Northern Truck Napa store is also selling a variety of solar-powered products using AGM batteries sourced from Carmanah Technologies Corporation. “We spec’d a little higher capacity AGM batteries because they have much more resistance to the cold,â€? said Aspinwall. “When we put those batteries in, they take the charge a little bit quicker so the solar panel doesn’t have to be nearly as large to maintain AGM batteries.â€? Driven by the demand by the oil and gas industry, batteries of all types are the number one seller in Canada for Napa’s electrical sales group “In Fort McMurray, where temperatures are a wee bit colder, the cold aects the batteries,â€? said Aspin-

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B27

wall. “Our business in batteries up there has been growing steadily every year for 10 years. It’s a double digit increase every year. “Bonnyville is the same thing. There is a lot of industry that requires good heavy duty batteries. Our store in Bonnyville has a great stock of all the heavy duty batteries that they require.â€? The AGM batteries sold at Napa have a lead acid base electrolyte so they are recycled to keep them out of the landďŹ lls. “Most of the distributors in the automotive market have core recycling programs. We went to that in October 2008,â€? said Aspinwall. “It’s good for everyone all the way around because the more lead we can return to our manufacturers, the less they have to buy in the marketplace. It keeps the price of batteries reasonable.â€? “The batteries are collected by East Penn at all Napa store locations on a regular scheduled route. “We stock them in the store on proper pallets with the proper separators. “We’re only allowed to have so many in storage, so East Penn does a really great job for us making sure that they pick them up in a timely fashion,â€? said Aspinwall.

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B28

PIPELINE NEWS May 2013

Red Lily Wind Farm Àrst of several projects for Algonquin

This is the St. Leon wind farm in late summer.

File photo

Moosomin – You may not have heard of Algonquin Power Co., but your light switch has. That’s because a small fraction of the juice running through it is coming from wind turbines operated by Algonquin. In the future, even more of your everyday electricity will come from them by way of long-term power purchase agreements. Algonquin runs the Red Lily Wind Farm near Moosomin. Homer Lensink, director of energy projects in their business development group. He looks after new power generation. In 2010, they built the Red Lily project. In the coming years, they will be building Saskatchewan’s next two wind projects, substantially adding to our provincial wind power generation. Asked of the origins of Red Lily, Lensink said in 2007 SaskPower ran a renewable power program,

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soliciting bids. About a half-dozen contracts were signed, including one wind contract. “We were successful in winning a 25-year power purchasing agreement, for a 25-megawatt power project near Moosomin, just north of Highway 1,â€? Lensink said. There was a slight revision to the contract with the change of Saskatchewan’s government. In 2009, they had their environment, zoning approval from the municipality, and interconnection issues with SaskPower resolved. “We began building the summer of 2010,â€? he said. There are 16 turbines, each 80 metres tall to centreline of the rotor. The top dead centre of the rotor is 121 metres tall. Each unit is a Vestas V82, manufactured in Denmark in 2008. Lensink said, “They came to the port of Houston, Texas. They came north to Saskatchewan on a combination of rail and truck.â€? Construction took place in the second half of 2012. “We went online, delivering electricity February 2011,â€? Lensink said. “Each turbine has a rating of 1,650 kilowatts,â€? he said. The result is just over 26 megawatts in total. Twenty-ďŹ ve megawatts is roughly equal to 35,000 horsepower. That power is generated “When the wind is blowing strong, i.e. 10 metres per second or 35 kilometres per hour, then the needles on those 16 turbines pinned at the max and we’re making 26 megawatts.â€? ɸ Page B29

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ɺ Page B28 Capacity factor One of the criticisms of wind power generation is the variability of wind strength. While they don’t always get that much wind, Lensink noted, “In Saskatchewan, it blows very well, thank you very much.” The capacity factor describes how much capacity is produced on an annual basis. This factor depends on location. He explained, “In Ontario, we say the average capacity factor is 30 per cent. In Saskatchewan, the number is actually 40 per cent capacity factor. Sixteen megawatts is the average output for the year.” Lensink noted that technology is now five years old, and there have been continual improvements. “The capacity factor for wind turbines is getting better and better. The rotors are getting bigger and bigger, the towers are getting bigger. The swept area is increasing, and we’re seeing generally better capacity factors,” Lensink said. New turbines for 2014 might see a capacity factor of 42 to 45 per cent. “Wind power is very much an evolving technology,” he noted. Coal-fired plants, in contrast, get 100 per cent capacity, in that they always put out power when turned on. Manitoba experience calms worries Algonquin owns and operates the St. Leon Wind Farm southwest of Winnipeg on the Pembina Escarpment. It was developed in 2005. It uses exactly the same turbines as the Moosomin project. It had 100 megawatts worth of turbines built in 2005, and a further 20 megawatts added in 2012. They also see a 40 per cent net capacity. Asked if they would be adding more turbines in at Moosomin or St. Leon, Lensink said, “If the market conditions are favourable, certainly.” It was very helpful to have a similar wind farm a few hours drive down the road from Moosomin when they proposed the Red Lily project. Initially they had some concerns expressed. “We organized some three-hour bus rides to St. Leon. The durum farmers from Moosomin went to see the canola farmers in southern Manitoba and said, ‘How’s it going?” “They were the best ambassadors for our project, because they lived with it for four years. There wasn’t a peep.” The Saskatchewan people spoke to the people in St. Leon, which has a turbine just outside the small community. “Some even apologized to us,” Lensink said after the tours were complete. Two more projects coming in Sask. “We have two more wind projects in Saskatch-

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The Vestas V82 wind turbines at Moosomin were built with technology that was current Įve years ago. In the Ɵme since, the capacity factor of wind turbines has grown several percentage points for new wind turbines. This turbine, an idenƟcal model, is at St. Leon, Man. File photo

ewan,” Lensink said. The first is being done under GOPP – Green Options Partners Program – with SaskPower. The program used a lottery system to award a number of contracts for hydro, solar and wind projects. The next one will be another 25 megawatt project near Morse. “It will look and feel almost exactly like Red Lily at Moosomin. It will be spread out like that. It will be just south of Highway 1, between Moose Jaw and Swift Current.” he said. Construction at Morse will begin to take place in July or August of 2014. The next project is the big one, at Chaplin. “SaskPower ran another RFP (request for proposals) for 175 megawatts of wind.” SaskPower has been taking heat for burning a lot of coal, he noted. This project will run five to six kilometres north of Highway 1 near Chaplin near where SaskPower will be building a big new transmission line in 2015

It’s just east of the Morse project, and is scheduled to come online in late 2016. Construction With such tall, narrow structures and massive, spinning rotors, foundation construction is very important. There are three kinds of foundations used. The first is a spread foundation, similar to the footings of a house, with a wide footprint. It’s 20 feet deep and 65 to 75 feet across. It’s a combination of rebar, cement and embedded anchor bolts. The second type is used where bedrock is close to the surface. It uses 80- to 90-foot long posttension anchors. That works in Ontario and southeast Manitoba, but not in Saskatchewan, where the bedrock is several kilometres deep. The third kind was used at St. Leon and for parts of Red Lily. Lensink described it as a “big pop can,” giant pile 40 feet deep and 18 feet across. Concrete is used to fill the inside. ɸ Page B30

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PIPELINE NEWS May 2013

Constructing a wind farm can be like a dance Éş Page B29 It takes three to four days to dig a foundation, and then they must install forms and pour the cement. Classic Portland cement takes 28 days to cure to full strength. On day 14, they can start putting on the ďŹ rst of four 20 metre tall sections of the tower. The next few sections can go up between days 14 and 28. After the fourth week, it can go full height. Generally it takes ďŹ ve to six weeks from start to ďŹ nish, and connection to SaskPower occurs about two-and-a-half months in. Co-ordinating all this over numerous sites spread over many miles, all with curing schedules, can be a challenge. “The whole construction cycle is a bit of a dance,â€? Lensink said. Moosomin tipped out at about 85 workers, including tradespeople, supervision, quality assurance and safety. They used one massive erection crane. Chaplin will likely require three erection cranes. How long will they last?

The power purchase agreements have been signed for 25 years. But what happens next? “Nobody’s casting a vision of what they’re going to be like in 20, 25 years,â€? Lensink said. In that time period, the industry may have turned to hydrogen or fuel cells. In year 26, they may need to do gearbox replacement, blade repair or replacement. “It’s like managing any other long-term asset. The engineer says those things have a certain life. Be prepared to put more money in. “There will be some revenue stream from that asset. It’s not like it’s going to fall over. “Someone’s going to want our power.â€? Lensink looks back at past experience. In the early 1980s, three locations had numerous sub-megawatt wind turbines installed, running 50 to 60 metres high, with lattice towers. Those towers, 30 years later, “are done,â€? he said. The industry is now “repowering,â€? taking old turbines down and replacing them with new, fewer, larger and more eďŹƒcient machines. Lensink said, “That is happening now.â€?

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On March 21, Algonquin Power Co. announced it had acquired from Kineticor Renewables Inc. all of the assets related to two proposed adjacent 10 MW wind energy development projects in Saskatchewan. In addition, a further adjacent 5 MW was developed by Algonquin independently, bringing the total development to 25 MW. The projects will be developed with support from Kineticor during the development phase, which is expected to be completed in late 2013. The total annual energy production for the projects is estimated to be 93,000 megawatt-hours, and they are to be constructed near Morse, Sask., approximately 180 km west of Regina and 400 km west of the Phase I Red Lily Wind Project. It is contemplated that the projects will be situated on 1,120 acres of private lands, with additional land under lease or option in order to facilitate future expansion of the projects.

Factbox: Red Lily (Moosomin) Size: 16 turbines Power: 25 megawatts Cost: $70 million

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Morse (2014) Size: 10 turbines Power: 25 megawatts Cost: $70 million

Chaplin (2016) Size: 77 turbines Power: 177 megawatts Cost: $355 million

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PIPELINE NEWS May 2013

Colorado, Alberta shake on clean energy Edmonton – The governments of Alberta and Colorado will head to the Western Governors summer meeting in Utah on a “Rocky Mountain High� over the prospect of a cleaner energy future. Saskatchewan Premier Brad Wall could join his peers from Alberta and Colorado in Park City UT June 28-30 as he has done in previous years. The Alberta and Colorado governments aim to strike a working group between provinces and states at that meeting to pursue clean energy initiatives. The two jurisdictions skirting the Rockies agreed to work together after Colorado Governor

John Hickenlooper and Alberta International and Intergovernmental Relations Minister Cal Dallas toured the oilsands in late March. “We welcomed the opportunity to explore economic development opportunities for Colorado and see ďŹ rst-hand the operations in Alberta’s oilsands,â€? said Governor Hickenlooper. “Expectations are high for North American energy producers and governments to continue to raise the bar on environmental management. “Colorado looks forward to building a co-operative relationship with Alberta that will see both

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jurisdictions excel as continental leaders in responsible energy development.â€? More than 28 Colorado companies provide equipment, parts and services to the oilsands. The Colorado delegation of more than 30 people also toured Edmonton’s world-class Waste Management Centre and met with several business leaders. Alberta exports approximately $2.27 billion in products yearly to Colorado. The state’s economy is driven by the energy and agriculture sectors similar to Alberta’s. Dallas commended Hickenlooper for recently spearheading an initiative between a number of American states to increase the use of natural gas vehicles in an eort to reduce greenhouse gas emissions and increase fuel eďŹƒciency, which would result in a lower cost to consumers. A company called Pioneer Natural Resources in Denver, Colorado, for instance, plans to complete the transformation of its entire eet of oilďŹ eld trucks and pickups that number over 2,000 to natural gas by 2015. Their Peterbilt trucks are powered by natural gas engines developed by Cummins Westport in Vancouver, B.C. Dallas said it’s worth a serious look to see whether under the Canadian Energy Strategy, Alberta and other provinces can forge a similar agreement using natural gas. “We applaud Governor Hickenlooper’s vision and eort to address emissions,â€? he said. “Colorado and Alberta have similar goals and show leadership on environmental actions. Alberta is very proud of its leading environmental actions. However, we are fully committed to push the bar higher.â€? Alberta is currently waiting for feedback from carbon emitting industries in the province about a plan being oated to increase the carbon tax to $40 from $15. Currently, large industrial polluters must reduce carbon emissions intensity by 12 per cent or pay a $15-per-tonne tax. Under the proposed plan, they would have to reduce emissions intensity by 40 per cent or pay a $40-per-tonne tax. The so-called 40/40 plan is led by Alberta Environment Minister Diana McQueen who considers it to be a compliance tool since companies always have the option to reduce carbon emissions or trade credits. The carbon tax has generated $312 million for Alberta’s clean technology fund. A total of $181 million has already been committed to 49 clean energy projects. The fund is in addition to a $1.3-billion investment in carbon capture and storage projects in the province.

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PIPELINE NEWS May 2013

East side There are plenty of racked rigs on both sides of Carndu朝. Photo by Brian Zinchuk

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PIPELINE NEWS May 2013

Saskatchewan to feed Energy East pipeline

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Calgary – An oil tank terminal will be built in Saskatchewan if TransCanada Corporation gets the support it needs to build its 4,400 kilometre Energy East pipeline to carry crude oil from Western Canada to Eastern Canada. Right now, the Calgary-based company is holding an open season to obtain commitments from potential crude oil shippers to use the pipeline that would transport up to 850,000 barrels of oil per day from Alberta and Saskatchewan. “At this point, we know that this project is technically and economically feasible,â€? said the company in an April 2 announcement. “Our discussions with prospective shippers have been very positive and lead us to believe that there is suďŹƒcient demand for this project in the market. “This open season is to secure the commercial underpinning from our customers that will allow us to proceed with developing the pipeline.â€? The season began April 15 and runs to June 17 and, if it’s successful, TransCanada will proceed with regulatory applications to construct and operate the pipeline with a potential in-service date of late 2017. The Energy East pipeline proposal involves converting natural gas pipeline capacity in approximately 3,000 kilometres of TranCanada’s existing Canadian Mainline to crude oil service. It also involves the construction up to 1,400 kilometres of new pipeline in Alberta, Saskatchewan, Eastern Ontario, QuĂŠbec and New Brunswick, along with associated facilities. Pump stations, tank terminals and marine facilities will be constructed in order to successfully move the crude oil from Alberta to New Brunswick and beyond. The oil tank terminal in Saskatchewan will be one of three terminals built along the line including one in QuĂŠbec City and one in the Saint John, N. B.area. The terminals in the QuĂŠbec City and Saint John areas will include facilities for marine tanker loading. The project will also include delivery to existing QuĂŠbec reďŹ neries in MontrĂŠal and near QuĂŠbec City as well as the reďŹ nery in Saint John. ɸ Page B35

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Reducing dependence on imported oil Éş Page B34 A new tank terminal will also be built in Hardisty, Alta. where the pipeline will begin. TransCanada said the project will beneďŹ t Canadians economically across the country by creating jobs and ensuring a stable, secure supply of oil. The Energy East pipeline has the support of politicians across the country who view it as a market for Western producers. Many leaders also see it as a way to eliminate Canada’s reliance on higher priced crude oil currently being imported. In 2012, Canada imported more than 600,000 barrels per day to supply its Eastern reďŹ neries On his Facebook page, Saskatchewan Premier Brad Wall called it “a positive developmentâ€? after hearing the news on CTV. New Brunswick Premier David Alward said on CTV news: “This is a critically important project that will beneďŹ t all Canadians.â€? Joe Oliver, Canada’s minister of Natural Resources held a brieďŹ ng for reporters in Ottawa when TransCanada broke the news that it had enough support to proceed with the open season. “Our government strongly supports initiatives to construct energy infrastructure to transport Western Canadian oil to the east,â€? said Oliver. “It is in the national interest to replace highercost foreign crude with lower-cost Canadian crude to consumers and reďŹ neries in QuĂŠbec and Atlantic Canada.â€?

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Watch that sled Deer in CarnduÄŤ watch one of the many snowmobile rides of the season on April 19.

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COADC pumped by training budget The training, which is projected to help 130,000 people, will be delivered through colleges and union organizations including CAODC rig technicians or motorhands who operate oil and gas drilling rigs. Rig technicians maintain drilling rig engines, transmissions, heating systems, diesel electric generators and motors, hydraulic systems and other mechanical equipment. The drilling industry’s rig technician trade is standardized across provinces, a feature that the 2013 budget aims to encourage in more trades. CAODC said employers in the industry have also been challenged in attracting under-represented groups such as aboriginals and newcomers.

Scholz welcomes the federal government’s $241 million investment to help First Nation youth across Canada access skills and training they need to participate in the industry. “The budget oers some good bridging opportunities between jobseekers and industry,â€? said Scholz. “We support the reallocation of $19 million over the next two years to inform young people about the trade opportunities within the drilling and service rig industry. “This is an important demographic to educate and attract into the industry as our labour demands continue to grow.â€?

35(0,(5 + 6 6$)(7< 6(59,&(6 ‡ 6DIHW\ VXSHUYLVLRQ IRU ZHOO VLWHV SODQWV DQG EDWWHULHV ‡ &RQĂ€QHG VSDFH HQWULHV ‡ )LOO DQG VHUYLFH DOO EUHDWKLQJ DLU HTXLSPHQW ‡ $LU WUDLOHUV DYDLODEOH U H Y :LWK R Tempco Drilling in Nisku is a member of CAODC representing Canada’s drilling and service rig industry. The organizaĆ&#x;on has voiced its support of the federal government’s 2013 budget focus on training skilled workers needed in the oilÄŽeld. Pictured is Tempco’s Rig 2 that underwent a retroÄŽt in 2011. File photo

Calgary – The Canadian Association of Oilwell Drilling Contractors was quick o the mark to commend Finance Minister Jim Flaherty for giving skilled trades training a priority in the federal government’s 2013 budget. CAODC president Mark Scholz issued a same day news release as Flaherty’s budget speech on March 21 in support of a Canada Jobs Grant next year and $241 million over ďŹ ve years for First Nations’ skills training. “CAODC members welcome the federal government’s choice to promote the trades in its Economic Action Plan 2013,â€? said Schultz on behalf of Canada’s drilling and service rig industry. The Canada Jobs Grant will replace the current labour market agreements in the 2014-2015 ďŹ scal year and will provide up to $15,000 per person for short-term jobs training. Only $5,000 will be contributed by the federal government, with matching contributions from province and employers. It’s the federal government’s way of dealing with the growing number of jobs that are going unďŹ lled, despite unemployment remaining around seven per cent.

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PIPELINE NEWS May 2013 U.S. based MicroSeismic Inc. expanded to Calgary several years ago and has grown in sync with hydraulic fracking primarily in shale oil and gas plays in Western Canada. The company has secured a contract with Husky Energy using BuriedArray technology to provide real Ć&#x;me monitoring and mapping of Husky’s hydraulic fracture operaĆ&#x;ons. This is a ÄŽle photo taken during MicroSeismic’s presentaĆ&#x;ons at a Society of Petroleum Engineers’ annual Technical Conference and ExhibiĆ&#x;on in Denver, Colo. in October 2011.

Real time mapping of hydraulic fracturing

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Calgary – Husky Energy Inc. has contracted MicroSeismic Inc. to provide real time monitoring and mapping of its hydraulic fracture operations in its unconventional oil and gas and shale plays in Western Canada. MicroSeismic, based in Calgary, will install its 40th BuriedArray surface microseismic monitoring program for Husky for an unspeciďŹ ed application or location. “This is another milestone for MicroSeismic as we celebrate our 10th year in business,â€? said Peter Duncan, founder and CEO of MicroSeismic in a March 21 news release. “We were the ďŹ rst to commercialize near surface microseismic acquisition in 2009 with the BuriedArray.â€? MicroSeismic pioneered the use of surface microseismic monitoring to listen to the naturally

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occurring, low-energy seismic noise emitted from a reservoir during hydraulic fracturing stimulation. Utilizing surface and near-surface arrays, MicroSeismic helps oil and gas companies understand how the reservoir responds to stimulation and its impact on economics. “The rapid adoption of the solution by customers helps demonstrate its value,â€? said Duncan. “It is an excellent solution for companies who want to cost eectively improve ďŹ eld development plans and not extrapolate from single well results. “We are pleased to work with Husky to assist them in achieving their production goals.â€? More than 95 per cent of the wells drilled by Husky in Western Canada in 2012 targeted oil. Drilling and well completions were optimized to increase productivity and reduce costs. The company is also continuing to advance it liquids-rich resource portfolio in the multi-zone Ansell and Kaybob areas of west central Alberta. The BuriedArray service is ideal for operators like Husky that need to monitor multiple wells or require monitoring through the life-of-ďŹ eld. MicroSeismic’s BuriedArray data acquisition service deploys a permanent array of geophone strings installed in the near surface and can monitor areas of more than 500 square miles. The BuriedArray monitoring service uses patented passive seismic emission tomography (PSET) technology to provide results that show how fractures are propagating during the well treatment. In addition, by determining source mechanisms, PSET processing provides a greater understanding of the eectiveness of the stimulation treatment. The wide area coverage provides economies of scale. As more wells are monitored under the same array, costs decline relative to other microseismic acquisition techniques. MicroSeismic said the ability to monitor large areas repeatedly with the same equipment leads to more strategic ďŹ eld planning and development and the ability to monitor re-fracs.

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PIPELINE NEWS

SECTION C May 2013

Cenovus to expand CO2 Áood by almost 50% Pipeline to connect Boundary Dam project to CO2 Áood Cenovus spokesperson Rhona DelFrari explained the details of the new pipeline.

By Brian Zinchuk Torquay – It’s literally the missing link when it comes to the carbon capture and storage plan for Saskatchewan, but it’s a link that is soon to be built. This summer, Cenovus will build a 10-inch pipeline from Boundary Dam Power Station, 65 kilometres to its CO2 manifold just east of its main Goodwater facility. The new pipeline will do several things, including providing SaskPower with an outlet for it soonto-be captured carbon dioxide other than the Aquistore injection well adjacent to the Boundary Dam Power Station. While the price for the CO2 is being kept private, it will mean a revenue stream for SaskPower from the sale of CO2. For Cenovus, it will give the company a diversity of sources for carbon dioxide. If it encounters any supply issues with its up-until-now only supplier, Dakota Gasification in Beulah, N.D., it won’t be left high and dry until the CO2 can begin flowing again. But there’s one more thing that hasn’t, until recently, been explicitly said to the public. The addition of the new SaskPower-sourced CO2 will allow Cenovus to dramatically expand its CO2 flood enhanced oil recovery operation in the south Weyburn field. Right now, Cenovus takes delivery of approximately two million tonnes of CO2 per year from Da-

kota Gasification. SaskPower’s planned one-million tonnes per year will be close to a 50 per cent boost. Rhona DelFrari, Cenovus director of media relations, spoke to Pipeline News at a open house held in Torquay on April 9. Attendance was light, with roughly 30 people in total present, including several representatives from Cenovus and SaskPower. “It’s an opportunity for people in the area to learn more about the new carbon dioxide pipeline that we have planned,” she said of the open house. “At our Weyburn operation in Saskatchewan, we’ve been injecting CO2 to enhance our oil recovery. Since 2000, we’ve been getting all our CO2 from Beulah, North Dakota, from a coal gasification plant there. When SaskPower created the opportunity to have CO2 with their new capture project at the Boundary Dam Power Station, they offered us the opportunity to purchase the CO2 that they are capturing there.” The agreement to purchase was announced just before Christmas 2012. “What this does for Cenovus is provide us two sources of CO2. That reduces the risk. For example, if one of the sources had to be down for maintenance for awhile, we have another source, so our operation can keep open. “It gives us more options for expansion of our

CO2 flood. Currently we have about 60 per cent of our Weyburn operation under CO2 flood, and we would be looking at in the future potentially expanding that. “That’s always been part of our plans. We’ve always known there was great potential across the reservoir at our Weyburn operation for additional CO2. Potentially in the future we would move our CO2 flood out to different areas, beyond that 60 per cent that it’s currently covering. “One other thing we would use that CO2 for is to optimize our current flood. Our reservoir engineers took a good look at the reservoir; they suggested injecting more CO2 into certain areas of the current flood area that we might be able to get a little more oil out of the ground there. ” The current flood is seeing a recovery factor of 40 per cent or more. When asked how much of an increase this could mean to recovery factors, she said, “We don’t know yet. That’s what they want to check out by injecting more CO2. DelFrari stressed the main reason for the purchase of CO2 from SaskPower was diversification of supply. “Right now our plans is to take from both sources. We think we can handle that right now.” ɸ Page C2

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Proposed pipeline is expected to be approximately 66 kilometres long

Open house held in Torquay for CO2 pipeline project Éş Page C1 “It gives us more options for expanding the ood and for putting more into the current area for optimizing.â€? The pipeline will run 65 kilometres from a custody transfer station at the edge of SaskPower’s property surrounding the Boundary Dam Power Station. SaskPower will have its own pipeline running a few kilometres from the power station to the transfer point. That route had not been ďŹ nalized as of early April. According to Doug Nixon, associate manager for integrated carbon capture and storage project Boundary Dam Unit 3, two routes were being considered. One runs south of the capture plant and to the west, hooking northwest past the Aquistore well to transfer point. However, this route would cross a lot of existing infrastructure and could be problematic if plans for future additional carbon capture capacity go ahead. The other route takes the line straight north and then due west, parallel to Highway 18. A spur line would run to the Aquistore well.

The Aquistore injection and observation wells were drilled last summer and fall. The deepest wells in Saskatchewan, they make up a research project administered by the Petroleum Technology Research Centre. They will be used for deep saline aquifer storage of carbon dioxide. The injection well will see a lot of action during the commissioning of the carbon capture plant, and again whenever CO2 is being captured, but Cenovus is not able to receive it. This could happen during maintenance operations, for instance. Otherwise it is SaskPower’s intention to deliver all its captured CO2 down this new pipeline to Cenovus. Roughly two-thirds the new pipeline will follow the route of the existing Souris Valley Pipeline that is currently supplying CO2from Beulah. That line is owned by Dakota GasiďŹ cation, but the new line will be owned by Cenovus. “We’ve been talking to landowners along the way.â€? About 65 landowners are aected. The dierence between the two sources is the gas from Dakota GasiďŹ cation is sour with several

per cent H2S, but the gas from SaskPower will not be. “Other than that it has the same amount of purity,â€? she said. Twila Walkeden, also of Cenovus, said there has been no opposition to the new line, and noted that there’s a level of comfort due to the fact there’s an existing line in place. “I think the people of this community should be pleased to see Cenovus is investing even more into this community. We have a great amount of conďŹ dence in our operations here in that we’re planning for the future,â€? DelFrari said. “Initially we said injecting CO2 into the ďŹ eld would extend its life 20 to 30 years. Now we say, ‘Who knows?’ As technology develops, in any kind of oil industry we’re able to get more oil out of the ground and keep operating longer. So who knows? “It’ll be a few decades, for sure.

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Local reaction to CO2 pipeline Filling the gymnasium of Torquay’s defunct school, now a community centre, Cenovus had numerous displays at its open house on April 7 detailing its planned CO2 pipeline from Boundary Dam Power Station to its Goodwater plant. While there wasn’t a large turnout, many elected oďŹƒcials were present. Souris-Moose Mountain MP Ed Komarnicki was present almost the entire evening. Komarnicki was a player in getting federal funding for the carbon capture project. Torquay Mayor Mike Strachan was one of those checking out the project, along with Darwin Daae, Reeve of the RM of Cambria. “I think it’s good for the area,â€? said Strachan, who works as a coal miner. “Any growth is good,â€? said Daae. Strachan referred to recent changes in greenhouse gas emissions regulations, saying, “With new environmental regulations, this is the way to go.â€? His biggest concern was housing workers for

the project. For the RM, Daae said, “We talked to Cenovus. It was just minor little things.â€? Cenovus is meeting all the rural municipalities’ concerns, he said. Lorne Hanson is one of the landowners affected. He already has the existing Souris Valley Pipeline crossing his land, taking CO2 from Beulah, N.D., to Goodwater. “It’s good for cleaning up the old oilďŹ eld and jobs, and cleans the air at the power plant,â€? Hanson said. “It’s the consumer that pays the cost of it all; farmers buy fuel at one hell of a price.â€? The only concern he raised was drainage. Once a pipeline is in the ground, you can’t dig a ditch across it. “A few years ago when it was wet, we couldn’t trench deep enough.â€? He added, “We probably could be paid better for it.â€?

Reeve of the RM of Cambria Darwin Daae (leĹŒ) and Torquay Mayor Michael Strachan checked out the Cenovus open house.

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PIPELINE NEWS May 2013

Is a reduction of a resource credit a change in royalties? „ By Brian Zinchuk Regina – It didn’t get a lot of attention when announced as part of the 2013 provincial budget, but there was one line item that has indicated a change in policy for the Saskatchewan Party government. Ever since they were elected in 2007, the Saskatchewan Party, through speeches by either Premier Brad Wall or his ministers, has said time and time again they would not touch the royalty regime brought in by the predecessor NDP government. Yet on page 10 of the Budget Summary, it was noted the Saskatchewan resource credit (SRC) would be reduced by a quarter point. The change is small, relatively speaking, on a very distinct set of criteria. For oil and gas, it doesn’t aect any wells newer than 2002. But it is a change. This reduction of a tax credit is, in eect, an increase in the taxes collected on natural resources. It did not receive mention during Finance Minister Ken Krawetz’s budget address delivered in the legislature on March 20. He noted, “Mr. Speaker, as I mentioned, this budget is a balanced budget. At a time when most other jurisdictions continue to struggle with large deďŹ cits and mounting debt, Saskatchewan’s ďŹ nances remain sound. ɸ Page C5

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Kent Cambell, deputy minister of the economy, explained changes to the Saskatchewan resource credit. File photo

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PIPELINE NEWS May 2013 Éş Page C4 “That said, it’s no secret that resource revenues are down. So in order to achieve that balance, our government has to control spending.â€? Kent Campbell, deputy minister of the economy, explained the change to the Saskatchewan resource credit to Pipeline News by phone. “It’s not a royalty in itself. It is a credit against Crown royalties and production taxes payable on the production of oil, natural gas, potash, uranium and coal. It’s really meant to compensate for the resource surcharge, which is a tax – three per cent, on the value of sales, on all mineral and resource production. Three per cent of your sales, you pay in a resource surcharge to Finance,â€? he said. “That’s been in place in various levels since 1988. The Saskatchewan resource credit is a credit against that in the royalty system. You pay the resource surcharge, and you deduct the credit against your royalties payable.â€? It was part of the corporate capital tax, but it now just applies to resource sectors. “The change that was made as part of this budget was reducing the value of the credit by 0.25 percentage points. When it comes to oil and gas, the value of the credit was either one per cent or 2.5 per cent of the value of production, depending upon the type of well and when it was drilled.

“Any production after September 2002 doesn’t receive credit at all. We made some royalty changes back in 2002 and got rid of the credit altogether and worked it into the royalty curves.â€? It will have no implications for future drilling or anything drilled after 2002. Wells drilled prior to 1998 that ďŹ t the criteria had a one per cent credit, and those drilled from 1998 to 2002 had a 2.5 per cent credit. A 0.25 per cent reduction of the credit in fact means wells drilled prior to 1998 will see a one-quarter reduction in the credit, and those drilled from 1998 to 2002 will see a one-tenth reduction in value of the credit. “It’s not a lot,â€? Campbell said. The increase to the provincial revenue is expected to be $22.3 million, of which $7.4 million is from the oil sector and $300,000 from the gas sector. The remainder will come from potash, uranium and coal. Overall, the province is expecting royalty

revenue and projected land sales to come in at $1.5 billion for the 2013 ďŹ scal year. That’s down from the $1.9 billion that had been projected for the 2012 ďŹ scal year. Last year’s budget set oil’s expected price at $100.50/bbl. for WTI. This year, that number is down to $92.50, based on at least 10 private sector forecasts. Natural gas is done the same way. “It was a very tight budget, and one of the priorities was a balanced budget. That’s very important,â€? Campbell said regarding the adjustment to the SRC. In the same budget, the ethanol grant was scaled back by a third. That grant will eventually be phased out entirely. But there was no interested in adjusting royalties rates themselves, he said. While there was no consultation with industry regarding the change to SRC, Campbell said signiďŹ cant changes in royalties would have extensive consultations.

Prospects for natural gas drilling very poor The strip price for natural gas over the next ďŹ ve years that the provincial budget forecast in March is pretty dismal. That will have implications on natural gas drilling, according to Deputy Minister of the Economy Kent Campbell. “We think if prices remain as low as we’re expecting, we’re not going to see a lot of natural gas drilling in Saskatchewan. It’s just not competitive – minimal drilling and production – almost nothing. “In terms of number of wells, less than 50, and those are probably to hold onto properties.â€?

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PIPELINE NEWS May 2013

Wall said they wouldn’t touch royalties, NDP point out Regina – Deep in the March 20 provincial budget is a reduction of onequarter of a percentage point of the Saskatchewan resource credit. It’s an obscure tax credit that, in the oil and gas sector, only affects wells drilled prior to 2002. The change will result in the oil and gas sector paying an additional $7.7 million to the province, pocket change on $1.5 billion in natural resource revenues. But the New Democratic Party opposition has picked up on it, especially the symbolism. Energy and Resources critic Buckley Belanger, MLA for Athabasca, was a minister when the current royalty regime was put into place, having formerly held the positions of minister of Environment, Northern Affairs, Community Resources and Highways and Transportation. “(Premier Brad) Wall has said on numerous occasions, probably a thousand times, they wouldn’t touch royalties at all. ” With no prior signals to the industry, Belanger said, “We’re surprised at this. ɸ Page C7

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Buckley Belanger, MLA for Athabasca, is the NDP criƟc for energy and resources. Photo submiƩed

PIPELINE NEWS May 2013 ɺ Page C6 “We have to see the math on this. “The process has to be more transparent. We need to know these things. These kinds of surprises are quite frankly a shock. “From our perspective, even though it’s an obscure move by the Saskatchewan Party, consultation is always the first step. “We need to see them coming.” The change did not see a lot of reporting in the media in the immediate aftermath of the budget. “Our research team found this after after a number of hours,” Belanger said. “It’s a really a mixed signal. You need to know these things. You can’t be surprised by things of this sort.” “The whole issue is, generally you should be able to count on the word of the premier when he makes statements on a continual basis. He’s indicated this time after time. “It is prior to 2002, and the changes are going down .25 of a percentage point,” he said, ackowledging the changes were relatively small. NDP values oil sector “The NDP knows the oil sector is very valuable. We understand that 100 per cent. We’ve always been supportive of Keystone XL pipeline. “The NDP is supporting the Keystone XL pipeline.” “We know the value to the province as a whole. “We know how valuable a booming economy is to the province. People are going to work, they are moving to the province, they’re making investments in the province. “It’s all common sense. The oilpatch provides opportunity not only for the working man and woman, but also for the economy as well. We need to be very clear on that front,” Belanger said. “The industry is the first player you would consult. ‘Look folks, we’re going to do this.’ I’m sure this surprised the industry overall. “December is when the budget is determined. It’s still a signal to industry. At the very least, industry should have been consulted before the budget is drafted. This way, there’s no surprises,” he said. Does this open the door for more changes in royalties? Belanger responded, “The main thing is the process needs to be transparent. I can appreciate the industry wanting to invest in the province. Without industry, Saskatchewan can’t do it alone. That’s why important for people, not just in the oilfield sector, but in potash, coal and uranium. All these big opportunities we have as a province – we know, and we embrace the private sector’s role in this. When we talk about, is this the opening for a new era, one of the

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first things we would say is consultation is always the first step. It’s a respectful step to take. “The second thing, from my perspective, when I look at the oilpatch as an NDPer, I feel there’s incredible economic opportunity. I’m not just talking about the jobs, and the injection to government coffers. There’s a real, solid value in the oilpatch. The only thing I think we get a bit criticized for is when we look at the environmental challenges attached. We can fix those together. The first thing we should do as a party and a province and a government is consult with the impacted parties. West-east pipeline Belanger is strongly in favour of the plan to convert part of the TransCanada mainline system from gas to oil service, shipping crude to Eastern Canada. “If there’s some way we can work together with the industry, I know we’re losing millions of dollars shipping our crude to the States, and it’s quite a ways with the Keystone XL pipeline. If we can somehow look at the west-east connect, we’re looking at billions of dollars, I’m not exaggerating, billions of dollars in revenue for the oil and gas companies and the government as well. As we increase the coffers for the companies, we increase it for the government as well. “Not only are you not sending raw product to the States, you’re preparing for what happens if the U.S. stops taking our crude oil. And start looking at your own source of oil – you can add value to your crude oil. With our own eastern-based companies, that can do a lot of the value-added,” Belanger concluded.

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PIPELINE NEWS May 2013 The Desk and Derrick Club of Southeast Saskatchewan members, check out the product of Estevan Wellsite Trailers Rentals. The company has just recently picked up six new units, comprising over half its Ňeet.

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Estevan – The Desk and Derrick of Southeast Saskatchewan members got a chance to see how the other side lives on April 15, when they toured Estevan Wellsite Trailer Rentals. Estevan Wellsite is owned in part by Desk and Derrick member Brenda Noble. She and her husband Virgil, along with Randy and Susan Olney, are partners in the rental outďŹ t that has been around for 18 years. “We incorporated in 1995. We bought two trailers,â€? said Noble prior to the tour. The company would buy a few at a time to build up the eet over the years. “In the last year, we bought six. We’ve sold four already.â€? “I’ve never spent one night in a trailer,â€? Noble told her compatriots, but added that Randy Olney will spend much of a year in one in his capacity as a wellsite drilling consultant. “He knows what the industry requires,â€? she said. “We have four types of trailers,â€? Noble said. One design is the 50/50, which is often used for engineers and consultants or geologists. The geologist side has a heated sink. They have several four-bed units, with four separate bedrooms. Each has its own entrance, bed, TV and bathroom. There’s a common laundry area. A command centre, she said, is “all oďŹƒce.â€? Finally they have a few “super singles,â€? which are used primarily by wellsite consultants. “Randy lives in one 300 days a year,â€? she said. Access to television is important to the clients. Noble said, “We have 10 trailers and 24 satellites.â€? That engendered a lot of laughs from the women in attendance. The units, also known as “shacks,â€? are made by Tru-Co at Nisku, Alta. The trailers have been used by several of the larger operators in southeast Saskatchewan.

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PIPELINE NEWS May 2013

SETI holds its Àrst job fair

Damon Vincent, right, spoke to Macey Menzies, leĹŒ, and Sandra Chadney with CanElson Drilling.

Estevan – The Saskatchewan Energy Training Insitute’s (SETI) ďŹ rst job fair was well received by the companies in attendance, but several wished the timing had been a little dierent. The event was held on April 3 during the Easter break, meaning high school students were not in class. That, in turn, meant a lower turnout, as those students were scattered to the winds. Classes were on at SETI, however, and those outside the education system came in as well. The number of people who attended each booth varied. “My count was around 70,â€? said Susan Mack of Canyon Technical Services towards the end of the day.

“We got quite a few prospects.â€? “A lot of our men are on rotation. We want to hire as many locals as we can,â€? said Shawn Maclean, base manager for Canyon, adding they will return if the event is repeated. Shayne Fenrick, a motorhand on Panther Drilling Rig 1, talked to many of the interested people. His counterpart, Shannon Leas, who does human resources and safety work for Panther, said, “It helped having someone to talk to.â€? She added it was a slow day and they would have preferred the event had been held during school days. Jodie Pratt with PetroBakken said they got a few resumes. Some people went directly to their oďŹƒce to drop o resumes. They are looking for operators and administration sta. Chris Mack, manager of production systems division with Weatherford in Estevan, said, “Experienced people are hard to ďŹ nd. We’re pretty much fully staed in my division. We’ve got some good people, and we do what we can to keep them.â€? Damon Vincent spoke to Macey Menzies and Sandra Chadney with CanElson Drilling. He said, “I’m seeing what’s available. I just moved here from

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Moose Jaw.â€? Originally from Oxbow,Vincent said, “There’s lots of opportunity here. I’m 21. I have experience in construction, not so much in the oilďŹ eld.â€? Sherritt Coal’s Monty Blomberg said they are looking for at least 10 equipment operators, plus tradespeople like electricians and welders. Mike Waldner, general foreman with Sherritt, said they’re also looking for administrative sta. “We never turn down if the right person walks in the door and the credentials are there.â€? SETI campus manager Sheen Onrait said, “SaskPower came in and hired our power engineering class, all that weren’t already hired.â€? Konstantin Toroshchin spoke to Onrait about educational opportunities. “I moved here two years ago from St. Petersburg (Russia).â€? He ďŹ nished a hotel management program, and was working at the Hilton in Niagara Falls, but he was making only $11 an hour. He moved to Estevan last August, and has since worked on service rigs and on wireline. Now he’s looking to pick up a trade. Onrait said, “This is our ďŹ rst attempt at a job fair. We had an advisory meeting in December. Companies asked for it.â€? They wrestled with the timing – should it be during a school break or not? Upwards of 100 people attended. Companies were charged a nominal fee for a booth. Will there be another job fair at SETI next year? “Absolutely,â€? Onrait said.

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How much wind power generation can we use? Montreal – How much wind power can our grid take? That’s a good question, according to Jean-François Nolet who is vice-president, policy and government aairs, with the Montreal-based Canadian Wind Energy Association (CanWEA). He said utilities are conservative, and that’s a good thing. “We ask them to be conservative. “I think we’re learning. Wind is very new in Canada. We’re seeing countries in Europe with penetrations of 20, 25, 35 per cent. We can increase our wind penetration in Canada. Currently we have two to three per cent total electricity consumption in Canada. Clearly wind can grow.â€? Provinces like British Columbia, Manitoba and Quebec can tolerate a lot of wind, because they can use their large hydro assets to back stop the turbines when the wind doesn’t blow. “The dams act as a battery,â€? he said. “When the wind doesn’t blow, you release water.â€? Provinces that rely more on coal have more of a challenge. Prince Edward Island has 11 to 12 per cent penetration. Quebec will hit between ďŹ ve and six per cent by 2016. British Columbia, on the other hand, only has 390 megawatts installed capacity. Saskatchewan is aiming for 8.5 per cent wind. “Saskatchewan is clearly a leader on that front. Ontario will be around four to ďŹ ve per cent. The optimal wind penetration in Canada is a question that will be addressed over the next two or three years, he noted. Work is underway in the United States to integrate up to 20 per cent wind. To increase wind usage, however, provinces will need to invest billions into their grids, upgrading old infrastructure. Wind power generation in Saskatchewan has hardly had a whisper of resistance, compared to Ontario, where the provincial government has pushed hard to develop wind power generation. “It’s a completely dierent experience,â€? Nolet said of Ontario, pointing out that province has thousands of megawatts of wind turbines being developed. Ontario has a great wind resource in the north. But where projects are being developed in the southwest, there’s a “fairly high level of population density.â€? Ontario has had a controversial feed-in tari for wind development, meaning that a premium will be paid for wind-generated energy. But SaskPower does not have such a tari for current wind projects. In Ontario, he said, “Our industry has learned a great deal.â€? Do you have to have a feed-in tari to make wind competitive? “No, it’s a very simple answer. Feed-in tari is an eective way to procure renewable energy,â€? Nolet said, citing Germany, Denmark and Ontario. But other than a small project in Nova Scotia, feed-in-taris are not being used in the rest of Canada. Over 1,500 megawatts of wind power generating capacity is installed in Quebec, and it will reach a 4,000 megawatt target, without a feedin-tari.

Canada currently only generates two to three per cent of its power from wind. Photo courtesy SaskPower.

“Wind can compete on its own,â€? Nolet said, adding, “currently, it’s cheaper than coal. The only source that is cheaper to develop is combined cycle gas, due to the historical low prices in North America. We don’t know what’s going to be the price of gas in 10, 15, 20, 25 years.â€? Wind generation is procured by call for tenders for wind speciďŹ cally, or for renewable energy, he said. SaskPower has developed several natural gas turbine plants, either its own, or contracted out to third parties, to backstop wind turbines for times when the wind doesn’t blow. “Gas and wind are a very, very good match. The same thing for large hydro. Wind alone is not an option,â€? he said.

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PIPELINE NEWS May 2013

Strike hits the ground running in 2013 Battleford – If area manager Corey Chmelnyk could train his new shop dog, Finn, how to drive a dozer or a BobCat, it would be on the payroll at Strike Energy Services Inc. That’s how busy it has recently been lately for Strike Energy in Battleford which has seen a lot of two legged help hired to keep up with the demand for a growing volume of pipeline construction and facilities work in the area. “We actually ramped right up this winter and had a fair amount of sta going,â€? said Chmelnyk. “We had some really good crews out there – some good manpower and some good experienced guys. “That’s the key, is having those types of guys. Your jobs go a lot better and, of course, they are safe. At the end of the job you turn over some proďŹ t.â€? The Strike Battleford branch is coming o a strong ďŹ rst quarter in 2013 and a record year in 2012 for the corporation with 14 locations in Western Canada. “It’s been excellent. Basically, we doubled our sales budget for the ďŹ rst quarter already,â€? said Chmelnyk as Finn’s tail wagged in approval. “Things are looking really good for the rest of the year as well. “We had an excellent January, February and March. We’re very happy and hopefully, it continues like that through the rest of the year. “In talking with all our clients, everyone’s pretty positive they’re going to be Corey Chmelnyk, area manager for Strike Energy Services in BaĆŠleford, takes a phone call. Strike is oÄŤ to a Ňying start in 2013 with loads of composite pipeline work for water doing a lot of work.â€? Most of Strike’s workload this year is being driven by the need for pipedisposal and water injecĆ&#x;on faciliĆ&#x;es. lines for water disposal and water injection sites by clients including Husky Energy, Canadian Natural Resources and Northern Blizzard. Most of their pipeline and facilities work is taking place in the busy Vawn, Edam, Turtleford, and Maidstone areas, about 70 kilometres west of the Battlefords. Cat dozers and excavators are used to trench composite pipe such as ex steel or ex pipe along with some steel pipe lined with high density poly(/(&75,& 02725 ',9 ethylene. *HQVHW /LJKW 7RZHUV 1HZ 8VHG 6DOHV ‡ 2QVLWH 5HZLQGLQJ 5HSDLU “A lot of times we are running dual lines, so *DV 3RZHUHG 3XPSV $LU &RPSUHVVRU 5(3$,5 6+23 they’ll run a water line along with a fuel gas line,â€? 7UDVK 3XPSV ‡ /LJKWV +HDWHUV ‡ *HQHUDWRUV 7HOHVFRSLQJ )RUN 6FLVVRU /LIWV said Chmelnyk. ‡ &RPSUHVVRUV ‡ &RQYHUWHUV %DFNKRH 7UHQFKHUV “We have been ditching it all in the past – not 2LOĂ€HOG ,QGXVWULDO &RPPHUFLDO much plowing going on.â€? 7UDLOHUV 6NLGVWHHU ɸ Page C13

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ɺ Page C12 Strike is also doing a lot of work for at Husky’s staged 10,000 barrels per day steam-assisted gravity drainage or SAGD project at Rush Lake, north of Payton, where with first oil is expected in 2015. A second well pair is being advanced to production in the second quarter of 2013 following the 1,000 bpd performance from the initial single well-pair pilot in 2012. Water for the steam project is being sourced from water wells near the North Saskatchewan River. “We tied in a whole of bunch of water wells just recently for Husky, just west of Edam down at the river. All that water is going to feed the Rush Lake SADG project,” said Chemlnyk. “There’s a 12-inch pipeline coming up. We’re hoping to get that this summer. There’s a big facility job with it. We’re hoping to get a bunch of people to work on that project. “Some of our other projects in that area have been with Northern Blizzard and CNRL, so it’s looking really positive.” “I think we have enough work with our main clients. Just from talking with their engineers and their project managers, they have enough for us to keep us going throughout the year. “We’re going to concentrate on keeping some good guys working with them and keeping them happy.” Strike can also draw from its other locations and services such as electrical and instrumentation, fabrication, major project construction, module assembly and maintenance and turnarounds. “We are able to do the whole project right from the ground up,” said Chmelnyk. “Being a company like Strike, you can pull guys from other districts to help out when you shorthanded. It works out very well for us.” Chmelnyk said his long-term plan for sustainable growth is to work with their main clients and to also “grab some of these smaller type companies that are coming up” and are and are not so junior anymore. “We want to work for everyone. We like to keep everyone happy and do a little bit for everyone. That way all of our eggs aren’t in one basket,” he said. Back in 2011, Strike was focused on oil and gas pipeline construction in the area, but new oil recovery methods led by SAGD and commodity prices have opened new doors in the Battlefords. ɸ Page C14

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Éş Page C13 “The majority of it is all water and water disposal, and water injection, and you name it,â€? said Chmelnyk. “There hasn’t been a whole of gas. The shallow gas stu has kind of crashed out. Gas prices haven’t been too strong.â€? Snow was also a commodity this winter and it helped to keep Strike’s workforce busy with contract plowing for 24/7 heavy oil operators in the area such as Baytex Energy Corp., Husky and CNRL. During a freak blizzard that swept through the northwest on March 2021, Strike deployed eight dozers to clear roads and leases for those companies and others in the region. “They were happy with how we did it and the quick response we had to get their production levels going again,â€? said Chmelnyk on a cold, late March morning when there was still plenty of snow still on the ground. “The breakup this year, I think, is going to be very challenging. “I think with all this snow, we are going to see a lot of wet areas. It could be one of our longer breakups than anticipated.â€? Looking ahead, Strike hopes to secure some facility and fabrication work for the construction of a 350 barrel a day pilot project being carried out by Bayshore Petroleum. It will convert heavy oil to diesel-quality light oil as fuel products or as diluents. Bayshore has entered into a 30-year agreement with the China Foreign Economic Cooperation Centre to license the catalytic upgrading technology to convert heavy oil into light oil in Canada. Their ďŹ rst facility will be located in Meota, about 43 kilometres northwest of North Battleford on Highway 26. “That’s within a half hour of us. We are really looking forward to what they’re going to have for us,â€? said Chmelnyk. “We’ve been back and forth with their engineers and stu. I think it looks pretty promising to start pretty quick. ɸ Page C15

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Strike Energy expects there will be plenty of Ć&#x;me for maintenance and repairs during what could an extended spring breakup period due to lots of snow this winter and early spring.

Éş Page C14 “The way it sounds right now, it would be facility work and a lot of fabrication work and inshop welding. There might be a little bit of pipeline with it.â€? There is a lot of economic growth and prosperity on the minds of area business managers like Chmelnyk this year as North Battleford holds their centennial birthday party on May 1. “It’s been good. There’s lots of good positive attitude. North Battleford has been expanding – lots of developments going on here,â€? said Chmelnyk. The entire $60 million Credit Union CUplex in North Battleford which features a performing arts centre, an aquatic centre, a curling rink and a ďŹ eld house, was up and running by the ďŹ rst week in March. “They’ve got the new multiplex (CUplex) so it’s been pretty exciting, especially it being their

100th year and us been situated here – it’s pretty good,â€? said Chemlnyk. Strike plans to expand the Battleford shop to accommodate more fabrication work and to make room for module assembly currently focused at Strike’s CrossďŹ eld and Bonnyville locations in Alberta. “We’re thinking we could set up a shop here and do the same thing and keep about 40 guys working all winter long just on those things,â€? he said. Every which you look, there are new houses and buildings under construction in the area. “It’s starting to boom. You can see it all around. We’re trying to grow with it and like I say, we’re going to expand,â€? said Chmelnyk. “There are other businesses that are doing the same. We’re looking forward to growing with them.â€?

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PIPELINE NEWS May 2013

PIPELINE NEWS May 2013

The B-Event went to Epping Energy, a team of fathers and daughters. The team was made up of, from leĹŒ, lead Shelby Dunnigan, second Chaelynn Kitz, third Brent Dunnigan, and skip Shane Kitz.

C17

Estevan Meter took the C-Event. From leĹŒ are lead Kyle Skuce, second Jarrad Skuce, third Carey Eagles and skip Trent Walter.

The winners of the A-Event were Brent Gedak Welding. From leĹŒ are lead JareĆŠ Mosley, second Brad Orsted, third Jessie Rosengren and skip Brent Gedak. Brent Gedak Welding beat out Southern Corrosion 5-3 in the ÄŽnal on March 24.

Top: Logan Skuce, leĹŒ, Ty Eagles, Rex Eagles and Zoe Eagles, front, were some of the shorter spectators at the bonspiel.

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Right: From leĹŒ, Terry Houst, Murry Fulkerth, Norm Mack and Aaron Pahl put in a team eÄŤort.

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PIPELINE NEWS May 2013

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Fly little birdie, à y! Ethanol grant cut by a third, more cuts to come Regina – There comes a time when every little birdie has to leave the nest. That was essentially the conclusion of the provincial government after a mandated review of the $24 million grant paid out to ethanol blenders each year. In the 2013 budget announced on March 20, the grant was cut by a third, from 15 cents per litre to 10 cents per litre. That cut brings it in line with our neighbouring provinces,

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Alberta and Manitoba, which have also charted courses for ending their per litre subsidies to the ethanol industry, according to Kent Campbell, deputy minister for the Saskatchewan Ministry of the Economy. Manitoba is on a path to eliminate theirs by 2015, and Alberta in 2016. Saskatchewan is now on a similar path, winding down the program, but Campbell said he is not sure when that will be. The reduction in the grant will result in an $8 million per year savings to the province, bringing the grant paid out down to $16 million in the 2013 ďŹ scal year. Asked if the industry will be able to survive without the subsidy, he said, “I think they can,â€? but added there are other factors in the economics of the business, including high wheat prices. The Lorne Calvert NDP government sought to expand its ethanol industry. The provincial government mandated that a percentage of all gasoline sold in Saskatchewan be ethanol. Initially it was two per cent in

early 2005, but that rate rose to 7.5 per cent six months later. At the time, the grant was brought in to encourage growth of the industry in the province. The ethanol fuel grant provided distributors with a 15 cent per litre grant for ethanol purchased from Saskatchewan ethanol producers and blended in automotive fuels distributed within the province. In 2005, thenIndustry and Resources minister Eric Cline said, “Ethanol is only one piece of a much larger puzzle. Ethanol and other biofuels are 21st century fuels. Ethanol use is increasing across North America and around the world. Alternative fuel sources are only going to grow in importance over the long term." Saskatchewan now has six blenders and ďŹ ve ethanol producing facilities. The mandated ethanol content percentage will remain, Campbell explained. It was never the intent for the program to be “lifelong,â€? he noted. “I guess we’ll see how these companies fare.â€?

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PIPELINE NEWS May 2013

C19

Cheap fuel drives natural gas engines Vancouver – An abundant supply of low cost natural gas in North American from shale gas discoveries is cranking up sales and interest in natural gas truck engines of all sizes. Vancouver-based Cummins Westport Inc., 50 per cent owned by Cummins Inc. and Westport Innovations Inc., introduced its newest 12-litre natural gas engine in April for the commercial truck market. “There are a lot of economic beneďŹ ts driven by the shale gas revolution. We have an engine that burns a lower cost fuel,â€? said Jim Arthurs, president of Cummins Westport. Full production of the new ISX12 G engine is scheduled to start in August in the United States. The ISX12 G natural gas engine is based on the Cummins Westport ISX12 diesel engine platform and it runs on compressed natural gas or liqueďŹ ed natural gas, both of which are cheaper than diesel. ɸ Page C20

Jim Arthurs, president of Cummins Westport in Vancouver, is stoked by the sales potenĆ&#x;al of his company’s new 12-litre natural gas engine for Class 8 regional truck hauling market. A Class 8 truck has a gross vehicle weight above 33,000 pounds. A larger 15-litre engine is produced by Westport InnovaĆ&#x;ons Inc., a 50 per cent owner of Cummins Westport. Sales are being driven by the low cost of natural gas and the introducĆ&#x;on of LNG refuelling staĆ&#x;ons in North America. Photo submiĆŠed

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PIPELINE NEWS May 2013

Heavy duty trucks

Ian J. ScoĆŠ, execuĆ&#x;ve vice president at Westport, has oversight of Westport’s market development acĆ&#x;viĆ&#x;es in North America. ScoĆŠ spoke at a public event held at the Westport Kentucky IntegraĆ&#x;on Centre on March 19. Photo submiĆŠed

Éş Page C19 Both new model engine types meet North American greenhouse gas emissions standards for 2014 but sales and the development of natural gas engines are motivated by the lower price of natural gas. “We don’t have a huge environmental beneďŹ t against a brand new diesel anymore,â€? said Arthurs. “Most people today who are buying a natural gas vehicle are really doing it because of the cost savings associated with the fuel. That’s the big deal. “What we see is the heavy duty trucking industry burns a lot of fuel. “Typically, over the life cycle of a class 8 truck,

80 per cent of the cost is fuel versus the truck itself. If you have a $125,000 truck, it will go through $600,000 to $700,000 worth of fuel. “If truckers can take a big bite out of the fuel costs, that’s very attractive.� Westport Innovations produces a 15-litre natural gas engine for the heavy haul truck market and estimates customers can expect savings of US$1 to $2 per diesel equivalent gallons. The new Cummins Westport ISX12 G natural gas engine utilizes their proprietary spark-ignited stoichiometric combustion with cooled exhaust gas recirculation technology.

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The so-called SEGR technology was introduced with their ISL G 9-litre natural gas engine that has gained an approximate 20 per cent market share of the continental transit bus market. “More recently, we’ve got between a 40 and 50 per cent share of garbage collection trucks. That was where the 9-litre engine really made sense,â€? said Arthurs. Larger engines like the new ISX12 G will help Cummins Westport improve its share of the class 8 truck market that is less than one percent today. In 2012, Cummins Westport and Westport Innovation combined sold 1,500 9-litre and 15-litre natural gas engines in a market of 200,000 class 8 trucks sold in North America. Their total natural gas engine sales in North American were around 5,000 and have nowhere to go but up. “Bringing out this 12-litre engine is really opening up the heavy duty trucking for us,â€? said Arthurs. “It’s really one of these things that are relatively new for them to have larger engines that are available.â€? Wesport is introducing a new 120 gallon LNG tank system to U.S. customers on a trial basis with a 350 to 450 mile refueling range. A company called Clean Energy in the U.S. has installed 70 natural gas refueling stations across that country as more eets switch to cold or warm LNG. “LNG fueling station networks will be established in response to market demand in Canada,â€? said Arthurs. “Investments in natural gas liquefaction facilities are required to bring LNG into the trucking market.â€? ɸ Page C21

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PIPELINE NEWS May 2013 Éş Page C20 Shell Canada opened the ďŹ rst public LNG refueling station for heavy duty haulers in Canada on March 7 at its Flying J truck stop in Calgary with two more stations to open this year in Red Deer and Edmonton. Shell is also building Canada’s ďŹ rst non-utility LNG production facility west of Calgary to serve the growing market. As many as ďŹ ve new LNG processing plants could be in production by 2020 in British Columbia from shale gas production in the northeast part of the province. “We are ďŹ nding all this shale gas now at relatively low cost, so it oers the North American economy the opportunity to reduce the cost of transportation by using a lower cost fuel and becoming much more energy independent,â€? said Arthurs. “Historically, the interest in natural gas 10 years ago was around emissions reduction. “Now it’s really about the economic beneďŹ ts – the lower cost of fuel and to some extent energy independence. “We do hear people, especially in the U.S. say, that they like burning domestic natural gas versus imported diesel fuel. That comes up. “The commercial trucking industry is all about the dollars and cents.â€? Cummins Westport 9-litre and 12-litre natural gas engines and natural gas engine are available in Kenworth, Freigthliner, Mack, Navistar, Peterbilt and Volvo trucks used in oilďŹ eld. Westport’s large 15-litre engine is only available on Peterbilt and Kenworth trucks. “We do see oilpatch and oilďŹ eld companies move in this direction,â€? said Arthurs. “We do think we will see pretty good growth in the business in the next numbers of years. “We expect to see it across the whole class 8 truck market where we’ll go from less from 1 per cent share to anywhere from 10 to 50 per cent of the market share.â€? Sales may also beneďŹ t from new harmonized environmental standards for Canada and the United States that aim to reduce greenhouse gas emissions by 23 per cent for 2018 model year heavy duty trucks. “Natural gas is inherently cleaner burning,â€? said Arthurs which helps with maintenance of the after treatment system. “With the SEGR system, we don’t need a heavy duty after treatment to do the remaining cleaning up of the exhaust. “A diesel engine these days will use a selective catalytic reduction system

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and a diesel particulate ďŹ lter, so they are quite complex to clean up the diesel emissions.â€? Because the ISX12 G natural gas engine is based on the Cummins ISX12 diesel engine, 80 per cent of the parts are identical. “We basically make a version of that engine that runs on natural gas rather than diesel,â€? said Arthurs. “We change the fuel system and we add a spark ignition system to the engine and we change the after treatment and a few things. “Most of the maintenance requirements are very similar. We do try to change the oil a little more frequently with natural gas. “We have spark plugs that you need to change every once and a while too.â€?

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PIPELINE NEWS May 2013

Land sale weak but set to rebound Regina – Energy and Resources Minister Tim McMillan reached back to 2008 to explain why the latest April sale of petroleum and natural gas rights generated just $7.7 million for the province. “While land sale activity has been comparatively quiet over the past year, if you consider the all-time record set back in 2008, it is to be expected as industry concentrates on drilling the huge inventory of land that has been acquired,â€? said McMillan. “There are a signiďŹ cant number of leases up for renewal in the next few years, and we expect that much of that land will revert back to the Crown and, as a result, there could be increased land sale revenue.â€? The April sale in 2012 contributed $16.4 million in revenue for Saskatchewan, but it’s costing more to acquire lands, with prices averaging more than $900 per hectare at this year’s sale. The Weyburn-Estevan area received the most bids with sales of $5 million followed by the Lloydminster area at $1.1 million. The Swift Current area generated $1 million, while the Kindersley and Kerrobert area brought in $623,103. The April land sale boosted the total revenue for the year to $19.7 million as oil and gas compa-

nies continue to tap into their existing lands at a steady pace. “Drilling activity is steady, and with major investments by industry in secondary recovery projects that have the potential to increase production from the Bakken, the future looks bright for Saskatchewan’s oilpatch,â€? added McMillan. The highest price paid for a single parcel of land in April was $3.1 million. Federated Co-operatives Limited acquired this 807-hectare exploration licence near Corning. The highest price on a per-hectare basis was $25,525, paid by Scott Land & Lease Ltd. that bid $826,252 for a 32-hectare lease parcel located west of Shaunavon. The next sale of Crown petroleum and natural gas dispositions will be held on June 3 2013. Weyburn-Estevan area (numbers rounded o ) The top purchaser of acreage in this area was Federated Co-operatives Limited which spent $3.8 million to acquire one lease parcel and one exploration licence. The top price for a single lease in this area was $678,182 paid by Federated Co-operatives Ltd. for a 259 hectare parcel situated three kilometres east of the Wauchope Alida-Tilston Beds Pool, 13

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kilometres west of Redvers. The highest price paid for a single licence was $3.1 million, paid by Federated Co-operatives Ltd. for a 807 hectare block located partially within the ViewďŹ eld Bakken Sand Oil Pool, three kilometres southwest of Corning. The highest dollar per hectare in this area was received from MinRich Energy Ltd., which paid $4,463 per hectare for a 16.19 hectare parcel located within the Ingoldsby Frobisher-Alida Beds Pool, 13 kilometres north of Carievale. Lloydminster area The top purchaser of acreage in this area was Husky Oil Operations Limited that spent $308,480 to acquire three lease parcels. The top price paid for a single lease in this area was $183,561, by Husky Oil Operations Ltd. for a 80.94 hectare parcel situated within the Marsden South Sparky Sand Oil Pool, 5 kilometres southwest of Neilburg. The highest dollar per hectare in this area was received from Ranger Land Services Ltd., which paid $8,132 for a 16.19 hectare parcel located within the Mervin South Waseca Sand Oil Pool, 15 kilometres southeast of Turtleford. The highest dollar per hectare in this area was received from Plunkett Resources Ltd., which paid $403 for a 64.75 hectare parcel located 20 kilometres southwest of the Verendrye Viking Sand Oil Pool, four kilometres southeast of Eatonia. Swift Current area The top purchaser of acreage in this area was Scott Land & Lease Ltd., which spent $826,252 to acquire one lease parcel. This 32.37 hectare parcel is situated within the Clintonville Shaunavon Oil Pool, seven kilometres west of the town of Shaunavon. This is the highest dollar per hectare in this area at $25,525. Kindersley-Kerrobert area The top purchaser of acreage in this area was Standard Land Company Inc., that spent $161,331 to acquire 3 lease parcels. The highest price paid for a single lease in this area was $92,538 by Standard Land Company Inc. for a 259 hectare parcel situated 3 kilometres west of the Onward North Basal Mannville Sand Oil Pool, 15 kilometres west of Kerrobert.

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PIPELINE NEWS May 2013

North Battleford to kick up its heels May 1 „ By Geo Lee North Battleford – You ain’t seen nothing yet. The title of that ’70s song by BachmanTurner Overdrive could be a theme for the city of North Battleford as it celebrates growth and a bright future during its oďŹƒcial 100th anniversary bash on May 1. The day will be marked by a free public romp in Central Park in the downtown core, complete with entertainment and cake followed by a formal evening gala at the new Dekker Centre for the performing arts. No doubt there will be a round of applause that night for the centre itself that is part of the $60 million Credit Union CUplex centennial project that also includes a standalone aquatic centre, ďŹ eld house and curling rink. “A $60 million investment is deďŹ nitely something that has

doesn’t happen every day in Saskatchewan, especially for a community of this size,� said Denis Lavertu, director of business development for the City. “Those facilities are going to be around for another 60 to 100 years.� That project is indicative of the growth and investment taking place in the area that is putting everyone is a party mood throughout the 2013 centennial celebrations. “The committee has done a great job in providing some events in the community,� said Lavertu. “We have businesses here, especially in our downtown, that have celebrated generations of family business. “I think it’s a good sign that in our centennial year we’re continuing to grow and we are a still a very vital and vibrant community. “All of the auto

dealerships over the last couple of years have invested in their facilities. That goes to show there is growth in the region,� added Lavertu. Today, North Battleford is a city with an increasing and diverse population, renewing infrastructure, massive capital projects, rising interest in business and residential investment and increasing economic participation by First Nations. In April, city council passed a bylaw designating the historic downtown core as a business improvement district to help merchants attract business and customers to the revived shopping area. The city is also planning to form a new regional Greater Battlefords Marketing Alliance in 2013 to promote the city and the region for new tourism and business marketing opportunities. The availability

of labour in the area prompted Grit Industries Inc. to move its manufacturing base from Lloydminster to North Battleford in 2012. “The labour force in Lloydminster was such that we were competing constantly with the oilpatch for every tradesperson and labourer,â€? said Jim Spenrath, Grit’s chief operating oďŹƒcer. “In North Battleford, what we’re ďŹ nding is the number of available people is signiďŹ cantly better for us. “We are being contacted by a lot of people that were originally from North Battleford or who have family in North Battleford and were working away. They were quite anxious to return to stable employment right in North Battleford. “We’ve had quite a bit of success recruiting those types of folks. These are people with roots in North Battleford and are very happy to be there.â€? Grit currently em-

Wayne King, president of Grit Industries Inc., added this Panasonic Mig roboĆ&#x;c welder to his new manufacturing shop in North BaĆŠleford. The City of North BaĆŠleford provided Grit with tax exempĆ&#x;ons to oÄŤset the cost of relocaĆ&#x;ng their manufacturing faciliĆ&#x;es to Parson’s Industrial Park from Lloydminster. Grit has found available labour in North BaĆŠleford, along with aÄŤordable housing for new employees. File photo

ploys over 60 workers in the manufacture of natural gas line heaters and secondary containment systems. “Business has been really strong. Our backlog of orders will keep us busy well into the future,� said Spenrath.

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

“We anticipated a high level of activity, and we’re certainly seeing it here.â€? The City of North Battleford went out of its way to woo Grit to its location in the Parsons Industrial Park, oering certain tax exemptions to help oset the capital cost of new equipment and renovations. “That’s going to help them make those further investments in that facility and continue to grow out there,â€? said Lavertu. “It is really a phenomenal company – just the innovation and their forward thinking. They’re always looking at what’s the next innovation for their company.â€?

ɸ Page C25

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7ROO )UHH Rooms with full kitchenette.

FREE Full Hot Breakfast. Earn free aeroplan miles with each stay. Now building in Carnduff & Melita

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PIPELINE NEWS May 2013

C25

North BaĆŠleford is holding a centennial gala on May 1 at the new Dekker Centre for the performing arts. The centre is part of a $60 million Credit Union CUplex centennial project that includes separate aquaĆ&#x;c centre, ÄŽeld house and curling rink. File photo

Éş Page C24 Other large industrial companies such as Mifab Manufacturing, G & C Asphalt (LaFarge), Kindersley Transport, EnviroSafe Chemicals, Anderson Pumphouse and Unicon Pipeline have set up shop in North Battleford. The city is also home to Cargill Ltd. and other major grain handling companies that operate inland terminals to support the strong grain industry in the area. “DeďŹ nitely agriculture is still a huge industry for us here and the osets from that as well,â€? said Lavertu. The Canadian Feed Technology Research Facility, owned by the University of Saskatchewan, was issued a $4.8 million building permit in February to construct an addition and do some renovating. Increased heavy oil and gas activity in the region is adding to the

industrial mix, creating new investment opportunities to an already diverse economy. “Oil and gas is deďŹ nitely picking up and getting closer. There are investments both north and south of us,â€? said Lavertu. Earlier this year, Husky Energy sanctioned a 10,000 barrel per steam assisted gravity drainage project at Rush Lake near Paynton, which is about 70 kilometres west of the Battlefords. Bayshore Petroleum Corp plans to construct a $9.5 to $10 million pilot plant near Meota, 35 kilometres northwest of the city, to turn heavy oil into diesel quality light oil. In response to those projects, Grit is using North Battleford as a secondary location for its Lloydminster-based A-Fire division heavy oil products. “We do a lot of work

down in the Kindersley area. To the north is the Edam and Turtleford area where there has been a lot of activity,� said Spenrath. With these developments in mind, Lavertu went out on a limb to predict North Battleford will double or triple its current size by the time the city turns 200. “Our strategy is to be the regional centre for northwest Saskatchewan – a centre of service, health and agriculture and oil and gas and transportation,� he said. His crystal ball statement contained in the 2013 city budget also points to a rosy future for the city. “Our future looks bright, with forecasts for strong retail growth and development of our abundant resources and agriculture in the region,� he said. “This plan sets a path for North Battleford to adapt and

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

www.apexdistribution.com

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respond to the needs of a growing, more complex community and region we serve. “The city will deliver on its plan to invest in our commercial and industrial neighborhoods and build a thriving future for business. The next centen-

nial celebration will take place during Canada Day, which will double as another call for homecoming. “It’s bringing back people from across Canada. We’ve had people from B.C. saying they are coming home for July 1 cele-

brations,� said Lavertu. “We’ve had some other seniors that have come home for the seniors’ tea from out of province.� The all-year centennial party will come to an end with a closing ceremony on Dec. 31.

F G O N R I L D EASE L I U B Location: Zoning: Specs:

Estevan, SK Highway, commercial and light industrial 2.5 acre lot 1900 sq ft office space 5600 sq ft shop space Total 7500 sq ft Includes 6 offices, 1 boardroom, lunchroom, 2 bathrooms, reception area, storage, 5 overhead doors - including one 100’ drive thru bay For more information contact Ryan Smith at 306-483-8995 Smith Building & Development Ltd.

A little taste of

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1305 - 9th Street Estevan • 634-6456

C26

PIPELINE NEWS May 2013

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

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PIPELINE NEWS May 2013

C27

Enform merges with industry HR body Calgary – OilďŹ eld safety and careers go hand in hand and now they will be thanks to a decision by Enform Canada to take the Petroleum HR Council of Canada (Council) under its organizational wing. The merger went into eect on Apri1 1 and consolidates the safety and training services of Enform and the human resources services of the Council into one integrated national entity serving Canada’s oil and gas industry. “This is a positive initiative for Canada’s oil and gas industry,â€? said Cheryl Knight, executive director and CEO of the Council in a March 25 announcement. “It will re-organize important industry services within one organization, and provide new opportunities to meet industry needsâ€?, she said. The move is described by Enform as an acquisition made on March 31 with the merger of the Council taking eect the following day. “We are looking forward to this new relationship with our Council colleagues,â€? said Cameron MacGillivray, president and CEO of Enform. “This move will be good for both organizations and for our industry.â€? The Council has a long-standing close relationship with Enform, which supports and promotes the highest safety standards in Canada’s upstream oil and gas industry through innovative training, certiďŹ cations, services and resources. Both organizations share many of the same core relationships with industry associations, leaders and enterprises, as well as with government organizations. The two organizations have worked sideby-side for many years out of the same oďŹƒce facilities. “This move just makes sense and the time is right,â€? said Knight. The main programs and services of the

Council will continue, primarily focusing on two key areas of priority. “The most important of these are our Labour Market Information and Careers in Oil and Gas programs,� said Knight. “Industry has been clear about the ongoing importance of this work.� The consolidation should also enable Enform to better service its members in the oil and gas industry with safety training and careers information. “The acquisition gives us access to valuable information and expertise to better align our training and safety services to industry workforce issues,� said MacGillvray. With the acquisition some unfunded work of the Council will be dropped in response to funding shifts and operating as part of Enform. “We are becoming a more-focused organiza-

tion,� said Knight who noted all active pre-acquisition projects would be completed. “Over the spring and summer of this year, we and our colleagues

at Enform will work together with industry and other stakeholders to review our programs and structures as one integrated entity,� she said.

“Our standard will always be how to best meet the needs of Canada’s oil and gas industry. “Over the years, the Council has accomplished many great

things for Canada’s oil and gas industry. We look forward to continuing these contributions from within Enform,� added Knight.

CAREER GuĂ—de COIL TUBING PERSONEL, NITROGEN SUPERVISORS, PRESSURE TRUCK OPERATORS, CRANE OPERATORS, & SWAMPERS

Â?ʹ•ƒ•Â?̡”‘…Â?•‘Ž‹†Â?‹–”‘‰‡Â?Ǥ…‘Â? ‘” ˆƒš –‘ ;Ͳ͸nj͜;;njʹͳ͸Ͳ ÇŁ ;Ͳ͸nj͜;;njʹͲ;ʹ

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EMPLOYMENT OPPORTUNITIES FULL TIME HEAVY DUTY MECHANIC for our Carlyle Shop. Experience on oilĹżeld equipment an asset, but not necessary. Bonuses paid on performance.

Applied Industrial Technologies LP. a group of industrial distribution companies located throughout Canada, and we are currently seeking qualiďŹ ed individuals to ďŹ ll the position of:

SHOP FOREMAN

Duties include managing mechanicals, ƀeet services & parts.

Customer Service Representative Estevan, Saskatchewan

Wages negotiable on experience. BeneĹżt package available.

For further info please contact Randy at either 453-2226 or randy@prowell.ca

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Responsibilities include but may not be limited to: • Providing service to branch customers and managing assigned product lines or customers. • Active involvement in company’s Quality Management process as evidenced by continuous improvement in processes directed toward reducing costs, increasing sales/gross proďŹ t and customer satisfaction. • Carries out policies and procedures as deďŹ ned in the company policy manual. • Continuous development through reading, seminars and on the job training. • Provide a high level of customer service to branch customers including timely, accurate responses to inquiries. • Cross train to assist or ďŹ ll in when fellow team-mates are absent or their workload volume is high • Work with distribution centre to expedite special requests as necessary • Engage in direct sales actives • Provide telephone support for outside sales force • Meet or exceed sales performance targets • Ensure accurate, timely order processing through the computerized order processing system • Maintain cooperative and productive inter-departmental relationships • Attend branch meetings as required • Take personal responsibility for and actively engage in product systems and skills training and development • Maintain highest regard for safety and housekeeping • Perform other similar or related duties as assigned by the branch manager or supervisor. Preference will be given to candidates with the following qualiďŹ cations and attributes: • High School or equivalent • Related industry experience or 3-5 years industrial inside sales experience preferred • Bearing and power transmission experience is a deďŹ nite asset • ProďŹ cient computer skills, experience with SAP is an asset • Sales and customer service experienced • Mechanically inclined • Ability to work independently • Analytical and problem solving capability • Enthusiastic and exhibits a positive attitude and desire to succeed Applied Industrial Technologies offers competitive salary, comprehensive group beneďŹ t plan, company sponsored RRSP/DPSP, ongoing opportunity for training and development and promotion within the company. Send your resume to aithire@aitcanada.com or fax attn.. Chris Babyak 403-214-1423.

C28

PIPELINE NEWS May 2013

CAREER Gu×de

/RFDWRU $VVLVWDQW Wanted for outdoor work in the oilfield, combination of walking, standing and bending. Attention to detail, hand-eye coordination and willingness to learn are definite assets. H2S and First Aid/CPR required, employer willing to train. Apply in person to:

Quest Line Locators Ltd. 104C Perkins Street or email questlocators@sasktel.net

CONSTRUCTION LTD.

101 Supreme St. (Shand access road)

SERVICE RIG PERSONNEL Class 1A & 3A Preferred Above Industry Wages Benefits Packages Opportunity for Advancement Email: sleibel@suncountrywellservicing.ca Fax 306 634 1200 • Cell 306 421 3418

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Glen Peterson Construction Ltd. 314 - 6th Street, Estevan, SK S4A-2V7 Ph: 306•634•2741 Fax: 306•634•4643 E-mail: construction@glenpeterson.ca

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PIPELINE NEWS May 2013

C29

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 and agricultural cutomers. 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

A job at

vs. the other guys Peace of mind knowing work is steady and secure

A girlfriend/wife who is happy and thinks you rock!

Worry about not being able to pay your bills

Envy for the other guy’s happy girlfriend

Really cool stuff you can afford to buy

A thin wallet and stretched bank account

Where would you rather be working?

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A full wallet and healthy bank account

Eagle operates the newest fleet of rigs, has safe operations, and offers steady work – that means more cash in your pocket, and a whole lot more!

Brochure for really cool stuff that you can’t afford to buy

Phone: (306) 634-8235, Fax: (306) 634-8238, Email: Estevanrigjobs@iroccorp.com

12: +,5,1* )25 $// 326,7,216 www.eaglerigjobs.com

Field Service Technician CanGas Solutions Inc. is an Alberta based oilďŹ eld service company and a wholly owned subsidiary of CanElson Drilling Inc. The two main services provided by CanGas are capturing and monetizing raw natural gas that is currently being ared or vented by the energy industry and transporting processed natural gas for use as a fuel to displace diesel or propane. You will be responsible for the support and maintenance of bi-fuel conversion kits on diesel engines used in ďŹ eld based equipment including drilling rigs and generators. CanGas is currently hiring for ďŹ eld based positions in both Alberta and southeastern Saskatchewan.

Duties and Responsibilities

Applied Industrial Technologies LP. a group of industrial distribution companies located throughout Canada, and we are currently seeking qualiďŹ ed individuals to ďŹ ll the position of:

-Troubleshooting and maintenance of bi-fuel conversion kits on diesel engines. - Move and setup unloading equipment from well to well as the drilling rig moves. - Coordinate natural gas trailer deliveries to the drilling rigs and other locations contracted for gas supply. - Ensure that Company and government safety, policy and regulatory standards are met.

Shipper Receiver

QualiďŹ cations

Estevan, Saskatchewan

- Minimum of 5 years strong technical expertise in the maintenance and operation of natural gas piping and distribution equipment. - Preference will be given to applications who also possess experience with repairing and maintaining diesel engines. - Hold valid oilďŹ eld tickets — H2S, First Aid, CPR certiďŹ cates. - As a minimum, hold a valid Class 5 drivers licence with preference for applicants having a Class 1 licence. - ProďŹ cient in the use of computer based programs. - Ability to work in a team environment and possess excellent communication skills to deal with customers and ďŹ eld staff.

The successful candidate will be responsible for: • Receiving and shipping all branch product in an accurate and timely manner • Sort material, stock shelves, pick orders, package and label materials • Handle lost shipments as an enhancement to customer service • Organize and maintain all applicable records and ďŹ les • Maintain up to date knowledge of the company’s service offerings • Maintain cooperative and productive inter-departmental relationships to deliver exceptional customer service • Take personal responsibility for and actively engage in product, systems and skill training and development Preference will be given to candidates who possess the following qualiďŹ cations: • Customer service driven • Experience in shipping and receiving • Forklift operation experience • ProďŹ cient computer skills • Detail oriented • Organized • Basic mathematical aptitude • Self-motivated • Can work independently or in a team environment Applied Industrial Technologies offers competitive salary, company sponsored RRSP/DPSP, career development opportunities and a full beneďŹ t package. Please submit resume in conďŹ dence via email to aithire@aitcanada.com or fax to 403-214-1423 attn. Chris Babyak.

Other Information Salary will be commensurate with qualiďŹ cations and experience. Please forward your cover letter and resume, in conďŹ dence, to: Human Resources Department CanGas Solutions Inc. 2010, 444 - 5th Ave. SW Calgary, Alberta T2P 2T8 Email: info@cangassolutions.com Please visit our web site at www.cangassolutions.com for additional information about our company. We thank all applicants, however only those selected for an interview will be contacted.

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PIPELINE NEWS May 2013

RESOURCE GuĂ—de

Dwight G. Blomander, CFP, CLU, CH.F.C., CHS • Life Insurance • Disability Insurance • Critical Illness Insurance • Employee BeneÀt Plans Tel: (306) 359-2015 • Fax: (306) 359-3034 E-mail: dwight@dgbcanada.ca Toll Free: 1-855-359-2015 • Cellular: (306) 421-1935

Life Licence sponsored by The

Great-West Life

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ASSURANCE COMPANY

LECLAIR TRANSPORT

105, 335 Hoffer Drive, Regina, SK. S4N 6E2

Lloyd Lavigne • Kirk Clarkson

General OilďŹ eld Hauling

Lyle Leclair Cell: 306-421-7060

Owners/Managers

JUSTIN WAPPEL - Division Manager

6506 - 50th Avenue Lloydminster, AB

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

Phone: (780) 875-6880 Phone: (780) 753-6449

5315 - 37th Street Provost, AB T0B 3S0

Fax: (780) 875-7076

24 Hour Service Specializing in Industrial & Oilfield Motors

Your best choice for accommodationss in Carlyle, Sk. • Full kitchen and upscale extended stay • Complimentary continental hot breakfast • Free high speed internet • Meeting room

Reservations: 306-453-2686

Cordell Janssen District Manager Downhole

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

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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

PIPELINE NEWS May 2013

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