Pipeline News August 2013

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August 2013

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A Division of Southeast Regional College

southeastcollege.org

1.866.999.7372

NOW OFFERING THE NEW H2S ALIVEÂŽ 7TH EDITION In conjunction with the 25th anniversary of H2S Alive, Enform has released in July, 2013 the 7th edition of the H2S Alive training program with updated content and a fresh new look. Saskatchewan Energy Training Institute and Southeast Regional College locations are proud to deliver the H2S Alive 7th edition course, providing industry with the most current and up to date training.

UPCOMING COURSES: H2S Alive courses are scheduled regularly in Estevan, Weyburn and Moosomin. Visit our A-Z course listing at southeastcollege.org for available dates. To book your H2S Alive training, contact us toll-free at 1-866-999-7372.

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By Brian Zinchuk Pipeline News Regina – Nobel Peace Prize laureate Dr. Malcolm Wilson took early retirement on June 14 from his position as CEO of the Petroleum Technology Research Centre. Wilson was one of the founders, along with Bruce Stewart, of the PTRC, in 1998-1999. Stewart represented the federal government’s interests, while Wilson, who worked for the provincial government at the time, represented the province’s. The PTRC is the province’s lead agency in developing and improving extraction methods for our petroleum resources. It has done extensive work in enhanced oil recovery, both in the heavy oil and carbon capture and storage fields. In 2001, Wilson moved over to head up the Office of Energy and Environment with the University of Regina. With a Ph.D. in geology, Wilson was a key player in the research and development behind the International Energy Agency Greenhouse Gas project associated with the Cenovus-operated Weyburn unit. In this capacity, he was one of the contributors to a report by the Intergovernmental Panel on Climate Change. That group, the IPCC, along with former U.S. vice-president Al Gore, received the Nobel Peace Prize in 2007. Wilson has been a leading figure on the world stage when it comes to implementing carbon capture and storage, and had for the better part of the

last decade been Saskatchewan’s front man in that effort. In May 2010 he came back to the PTRC as acting-CEO, then assumed the position full-time in January 2011. In its five-year anniversary edition in June 2013, Pipeline News named Wilson one of the five most influential people in the Saskatchewan oilpatch over the last five years. This past spring Wilson came under pressure from first the CBC, then the provincial New Democratic Party, regarding the interaction between the International Performance Assessment Centre for the Geologic Storage of Carbon Dioxide (IPAC-CO2) and Climate Ventures Inc., the company providing information technology services for IPAC-CO2. Wilson had been instrumental in setting up IPAC-CO2 in 2008. For a time in 2009, he was CEO of IPAC-CO2 before returning to the PTRC. Wilson had been a board member of CVI, but then resigned that position. The paperwork wasn’t filed for nine months, however. IPAC-CO2 became a bone of contention in the Saskatchewan legislature during the recent spring session. A review by accounting firm MNP in 2011 for the IPAC-CO2 board found that while the IT contract between CVI and IPAC-CO2 did not follow the University of Regina’s guidelines and that a conflict of interest likely occurred, “no evidence that Dr. Wilson or Mr. (Ian) Bailey monetarily benefited from their relationship with CVI.” ɸ Page A9

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/LJKWVWUHDP DQQRXQFHV JURZWK Second quarter 2013 average production was up 19 per cent over the second quarter of last year, says Lightstream Resources Ltd. Production in June averaged averaged approximately 45,000 bbls of oil equivalent per day (82 per cent light oil and liquids weighted), which contributed to second quarter average production of approximately 46,000 boepd, up from 38,700 boepd in 2012. The former PetroBakken Energy Ltd. attributed the increase to the continuous execution of its program, a maturing production base and mitigated impacts of spring break-up. As anticipated, drilling and completions activity slowed down during the quarter; however production was largely uninterrupted. This can be attributed to milder weather and infrastructure investments resulting in more wells being tied in to facilities, said Lightstream. In southeast Saskatchewan, Lighstream experienced minimal downtime during the quarter and continued to execute its program. It drilled three wells and placed two wells on production, bringing the yearto-date totals to 25 wells drilled and 24 wells brought on production.

Briefs courtesy Nickle’s Daily Oil Bulletin

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Weyburn – On June 17, CanGas Solutions Inc. along with SaskEnergy, unveiled the first commercial high-capacity compressed natural gas (CNG) truck-transport supply station in Saskatchewan. The CNG station was developed by SaskEnergy as part of a three-year natural gas delivery agreement signed by Bayhurst Energy Services Corporation, a subsidiary of SaskEnergy, and CanGas Solutions Inc., a wholly-owned subsidiary of CanElson Drilling Inc., an oil and gas drilling company based in Calgary, Alberta. The card-lock loading station, located at SaskEnergy’s Weyburn Town Border Station, is the first commercial CNG loading station in Saskatchewan designed to quickly and efficiently load trailer-sized CNG containers for truck-haul delivery. “Innovative facilities like this CNG loading station provide resource development companies with a cost-effective fuel choice that also benefits the environment - supporting continued economic growth done in a responsible manner,� said Dustin Duncan, MLA for Weyburn-Big Muddy, on behalf of Tim McMillan, minister responsible for SaskEnergy. “I applaud

the leadership of CanElson and SaskEnergy, as their investment in this project reflects the growing interest across North America in new uses for natural gas as a fuel for drilling rigs.â€? CanGas has established an extensive fleet of Saskatchewanbased truck-hauled CNG delivery trailers and CanElson is in the process of converting the primary diesel engines on additional drill rigs in Saskatchewan to bi-fuel capability so that the engines can operate on a mixture of natural gas and diesel fuel. CanElson is the first drilling company in the region to make the switch to natural gas fuelling and CanGas has become the first commercial supplier in Saskatchewan of trucked CNG for diesel engines on oil and gas drilling rigs. “Building off our experience working with CanElson, we intend to expand to other rigs and opportunities throughout the energy production chain,â€? said Rob Logan, president and CEO of CanGas. “Weyburn’s state-of-the-art CNG station now provides CanGas with the platform to grow our natural gas transport business.â€? ɸ Page A10

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

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%RQQ\YLOOH VSLOOV LWV VHFUHW VDXFH By Geoff Lee Pipeline News Bonnyville – Organizers of the 2013 Bonnyville & District Oil and Gas Show unveiled their secret sauce recipe that helped to make the event an unqualified success. They took feedback from exhibitors, sponsors and visitors from the first show two years ago and improved everything from attendance and registration to speakers and networking opportunities. In the process, $12,079 was donated to STARS air ambulance from gate proceeds from the June 19-20 event held at the local Centennial Centre. Another serving of the special sauce will be dished out by the Bonnyville & and District Chamber of Commerce committee at the next show scheduled for June 17-18 in 2015. Meanwhile, show director Tanya Oliver, who is also executive director of the chamber, continues to savour the initial feedback from this year’s show that she declared surpassed all expectations. “Absolutely – we got a lot more traffic I think than last time and our exhibitors are happy. We got lots of glowing reviews and the weather co-operated,” she said on the final day. One of those visitors was Oliver’s seven-month-old baby

daughter, Claire, who apparently gave a small thumbs-up to Mom’s efforts. “She loved it,” reported Oliver. “She’s part of the planning – she’s a little mascot.” The show attracted more than 1,500 visitors, up from 1,200 in 2011 as expected with more quality visitors reported by exhibitors. “We absolutely feel that we have quite a bit more traffic this year,” added show chair Robyn Ducharme who is also president of the chamber. “Some of the exhibitors have come up to me and said ‘maybe we didn’t have thousands of visitors stop by, but everyone we’ve talked to has been of quality.’ “When we can weed out the non-quality visitors and get right down to business with quality visitors, it ends up being well worth your time.” This year’s highlight was an improved and expanded oilmen’s room where show exhibitors got to pitch their products and services to procurement officials from 10 oil and gas producing companies in the region. “One of our exhibitors from the oilmen’s room made a $1-million deal,” confirmed Oliver. Only five oil and gas producers took part in the oilmen’s room in 2011. ɸ Page A11

The Wood Buffalo Environmental Association (WBEA) has published a new environmental book that clears the air on its scientifically enhanced air quality monitoring work. The book, titled Alberta Oil Sands: Energy, Industry and the Environment, takes a wide ranging look at significant environmental indicators of air quality and the state of the terrestrial environment in the Athabasca Oil Sands Region (AOSR). The peer-reviewed, academic results translate into “practical” science that is already helping to change the way stakeholders do business in the region according to Kevin Percy, book editor and WBEA director in Fort McMurray. “WBEA has been measuring and monitoring the environment at key points along the air pollutant pathway, and for the first time in this region we are utilizing a truly holistic, forest health approach to monitoring,” said Percy. “These chapters provide original scientific data on emissions, transport, air quality, deposition and source contributions to terrestrial ecosystems.” In 2008, WBEA assembled a distinguished group of international scientists who have been conducting measurements and practical research on various aspects of air emissions and their potential effects on terrestrial receptors.

Briefs courtesy Nickle’s Daily Oil Bulletin

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Published monthly by the Prairie Newspaper Group, a division of Glacier Ventures International Corporation, Central Office, Estevan, Saskatchewan. Advertising rates are available upon request and are subject to change without notice. Conditions of editorial and advertising content: Pipeline News attempts to be accurate, however, no guarantee is given or implied. Pipeline News reserves the right to revise or reject any or all editorial and advertising content as the newspapers’ principles see fit. Pipeline News will not be responsible for more than one incorrect insertion of an advertisement, and is not responsible for errors in advertisements except for the space occupied by such errors. 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.

3HDN RLO KDV SHDNHG Every month, Pipeline News has a different focus. Now well into our sixth year in this format, we’ve had to start recycling some of those focuses. This month, for instance, we revisit the environment, something we did roughly three years ago. But one focus from December 2010 we likely won’t be repeating – and that’s “peak oil.” On July 22, the Financial Post noted that The Oil Drum, one of the leading websites dedicated to the peak oil theory, was shutting down. That’s because almost no one was writing about the concept anymore. Peak oil, for all intents and purposes, is dead as a doornail. Look at the other headlines on the Financial Post’s energy page on the following day: “Busy global oilfields shield Halliburton from North American gas glut,” “Saudi Arabia’s oil sector threatened by North American supply,” “Oil by rail: Canada’s way out west?”, “Gas distributors sour over TransCanada’s mainline conversion plan,” and, the lynchpin in this discussion: “North Dakota oil output tops 800,000 bpd in May.” Back in 2008, the year oil hit $147 a barrel, we saw the peak of the peak oil theory. That’s why we, as consumers, were paying so much for oil, and producers were getting paid so much. It was running out, didn’t you know? And soon! At that time, North Dakota’s Bakken and Three Forks oil production was negligible. Now, five years later, the state that most Americans forgot about, is the second-largest oil producer in the union, eclipsing

even mighty Alaska. At the same time, Texas has been on a tear, developing its own shale formations, with no end in sight. Over this time frame, the oil industry’s future returned to its past, again shipping vast quantities of crude-by-rail. They used to do that decades ago, but then pipelines were built. Now the pipelines are choked, to the point of where huge discounts on Canadian heavy crude are putting a serious dent in the finances of the province of Alberta. You don’t see a 40 per cent discount on the price of a commodity that is rapidly running out. The Financial Post noted that in 2008, the International Energy Agency reported, “The world is not running short of oil or gas just yet,” but “field by field declines in oil production are accelerating.” The FP added, “The industry would need to run faster and faster just to stand still, the agency warned.” Quite simply, it has, and then some. The shale revolution, of which Saskatchewan has been a part, has not abated. While this method of extraction is now commonplace in our province, indeed, the new norm for new development, one must wonder what will happen when the rest of the world catches on. We’re not the only continent with shale basins – far from it. What happens when the Saudis and Iraqis start to focus on developing their unconventional resources? Everyone knows there is a finite amount of oil contained in the earth’s crust. But it seems we’re still a very long way from getting there, as long as we have the courage, tenacity and innovation to keep pushing the envelope.

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:KDW GR \RX VD\ DW D WLPH OLNH WKLV" As I type this, it’s been a week and a half since the Lac Megantic disaster. I’ve already been interviewed once about crude-by-rail and have another request in my inbox. On CBC News Network, the coroner’s office reported there are now 38 confirmed dead, and they think the total number will likely hit 50. I keep thinking of the Reba McEntire’s song, What do you say? In it, she sings, “What do you say in a moment like this? “When you can’t find the words to tell it like it is? “Just close your eyes and let your heart lead the way “Oh what do you say?” Lac Megantic was a disaster, pure and simple. Things like this happen – often due to human error. In this case, to an outsider, it was clearly an error to leave such a large train in the hands of just one man. What if he fell down and hurt himself? What if he fell asleep? What if he blinked at the wrong moment? How do you operate five engines and 72 cars with just one person? Who could possibly have thought that would ever be a safe situation? We don’t fly airliners with one crew member, nor do we operate ships just one sailor. While the railway is pointing fingers at the sole engineer, it is unbelievable that they would have put him in such a situation in the first place. Haven’t they heard of work alone policies? As in, never let anyone work alone? How did Transport Canada allow this railway to operate this way? It was an accepted practice? So now attention is being turned to crude-by-

rail, the phenomena that just a few months ago we said was one of the most important trends in the Saskatchewan oilpatch over the last five years. It’s growth has been tremendous, and I doubt it’s going to stop. The reason crude-by-rail came back to the fore, after having all but disappeared decades ago, is that pipeline capacity has not kept up with production growth. The price differentials have pushed producers to send their oil to refineries that are willing to pay higher prices. The current pipeline system isn’t going where they want to ship. Our industry has changed more in the last five years than it has in decades. We now have TransCanada’s gas mainlines running at a fraction of their capacity, yet it has become next to impossible to build new oil mainlines, be it Keystone XL, TransMountain Expansion or Northern Gateway. We’re producing more oil, conventional and oilsands, but can’t ship it. Pipelines are many times safer than rail, but both have their faults. In the late 1990s, I was called out to work on the repair of a TransCanada natural gas mainline blowout near Cabri. Thank God it happened in the middle of a field, because the houses half a mile away had their sidings melted. The fireball was visible from Saskatoon, I was told. If it had happened in an urban setting, like Regina, it would have made Lac Megantic seem like an afterthought. With a few exceptions, notably north Regina, White City and Kipling, mainline gas and oil lines avoid towns and cities. Rail lines do not. Every town

was built around the rail line. They were fundamental to the development of this country, and still are fundamental to industry today. According to a pipeline safety expert I spoke to, in excess of two-thirds of catastrophic pipeline failures are due to unprofessional excavation techniques – negligent human contact during excavation or ground disturbance. A small percentage, perhaps five per cent on the high side, are due to catastrophic ground shifting. Examples are flooding or seismic events. The remainder are mostly due to internal corrosion. But you drive into a train pretty much anywhere. They can go off the rails anywhere, too. I’ve personally been to one crude-by-rail derailment near Oxbow in January 2012, and our reporter Geoff Lee attended one in Paynton in January 2013. Both were caused by someone driving into the train. Thankfully, the spills were small in each case, just a few hundred barrels of crude, and they did not ignite. You don’t drive into pipelines. In these two incidents, one person died, and that was at Payton. I knew at the time that eventually, something much worse would happen. It did, except in a place I never expected. And when it does happen, such as in Lac Megantic, what do you say? Brian Zinchuk is editor of Pipeline News. He can be reached at brian.zinchuk@sasktel.net

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:KDW LI \RX KDYH D VSLOO" Environmental concerns are quite evident in the oilfield. The media loves a good story and seems to be taking the oil and gas industry to task on the smallest of incidents. We have seen a great number of stories on pipeline leaks over the last few months, involving companies of all sizes. Whether this is an increase in awareness throughout the mainstream media or the middle of political events over the expansion that both TransCanada and Enbridge are attempting, it should make us review our own processes and procedures, insurance policy contracts included. A commercial general liability policy was never designed to protect against environmental impairment and as such is specifically excluded from insurer’s liability wordings. There are, however, a number of options available from the insurance industry to protect against loss. Most insurance companies providing coverage to the oil and gas sector will provide coverage for sudden and accidental pollution liability. Sudden and accidental coverage is tied to a discovery and reporting period, and generally covers bodily injury and property damage caused by a pollution loss. The main issue with this fact is if the loss happens over time or is not discovered or reported in the time allowed under the policy form, there is no coverage in

place. Also, these forms tend to not have completed operations, action over, or cleanup costs included. A typical example of a sudden and accidental claim occurs if an equipment operator hits a well head, causing a pollution loss. This is both sudden and accidental, causes an immediate pollution loss, and causes property damage to the well head itself. It is also likely reported to the insurer immediately. Coverage would be provided to policy limits for the repair to property and for any bodily injury that may have occurred. Most insurance companies are now offering limits on this coverage to match the insured’s commercial general liability limit. A loss that occurs over an extended time period is not covered by the coverage described above. An example of a loss that occurs over time is a flow line leak. A leak in a flow line may go undetected for some time and regardless of the well production may cause significant environmental damage that the production company is left responsible for. It is not uncommon to have expenses in excess of $100,000 for relatively minor losses. Because of the exposures oil companies face, insurance companies have responded to provide coverage for most pollution losses, not just those that are sudden and accidental. A pollution liability or environmental impairment liability policy should

be considered for companies involved with the production or movement of oil, dirt, water, or any other material from site. The breadth of environmental coverage has evolved significantly to match exposure and to include: on and off-site cleanup, bodily injury and property damage liability, delete mitigation of loss (although on-site coverage makes it immaterial), legal defence costs, business interruption, diminution of value (of a third party property resulting from contamination), and contracted liability coverage. Additionally, the environmental product has become much more affordable over time and rates are viewed as highly competitive. As always, discuss your business operations in full with your broker to ensure they understand your business risks in full. A discussion surrounding pollution coverage should be of primary concern to oil and gas sector businesses. Environmental damage can cause significant financial loss to the point of bankrupting even the most established companies. Harley McCormick is a Virden, Man. based insurance broker with 10 years in the industry. He can be reached at hmccormickfca@mymts.net

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(QYLURQPHQW NH\ WR SLSHOLQH HFRQRPLFV The Joint Review Panel for Enbridge’s Northern Gateway pipeline is now deliberating to prepare its recommendations to the federal government. The panel has a broad mandate under both the EÄ‚Ć&#x;ŽŜÄ‚ĹŻ ĹśÄžĆŒĹ?LJ Ĺ˝Ä‚ĆŒÄš Ä?Ćš and the ĂŜĂĚĹ?Ä‚Ĺś ŜǀĹ?ĆŒŽŜžÄžĹśĆšÄ‚ĹŻ Ć?Ć?ÄžĆ?Ć?žĞŜƚ Ä?Ćš to consider whether the Northern Gateway Pipeline project is likely to cause significant adverse environmental effects, and if it is in the public interest. British Columbia rejected the proposal on May 31 on the basis the company failed to prove it could effectively control a major oil spill on land or water. The province claimed the proposal didn’t meet all of its five conditions for allowing heavy oil pipeline projects to proceed in the province. However, Christy Clark’s B.C. government basically said in its final written submission to the panel that if the National Energy Board approves it, then it will be okay with them. That’s because a decision by the NEB will only be made with a completed environmental review process that would likely satisfy B.C.’s concerns. Approval of the pipeline will be a lot easier now that Enbridge is redoubling its efforts to meet B.C.’s conditions that focus on the need for worldclass marine and land oil spill prevention and response systems.

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It was at night, a few winters back, that I first saw it. The billboard, on the side of the highway outside of Swift Current, came out of the darkness in the glare of the headlights. Its message was simple. It proclaimed in huge letters - FUN. Each letter was outlined in spotlights, much like a marquee sign in Vegas. A smaller sign underneath read 235 km. I stared at it as I drove past. “Fun in only 235 more kilometres?� I remember thinking. That particular trip had been anything but fun. It had started uneventfully. In the late afternoon of the previous day, I had spent a couple of hours loading packers onto the trailer. The shop in Estevan was built with a lot of space inside so that a trailer could be backed into the shop, and the forklift operator would then be able to load the heavy packers. Everything was fine while loading the packers. But there was a winter storm raging outside. Once everything was strapped down, I moved the trailer outside the shop so the big overhead door could be closed. I then called the consultant, on the lease west of Shaunavon, to confirm his land

If the project can pass the safety standard of being not likely to cause significant adverse environmental effects, it will surely meet the NEB’s requirement of being in the national interest. B.C. is the province that bears the greatest environmental and financial risks to taxpayers in the event of a major oil spill. The province has an obligation to hold Enbridge’s feet to the fire to meet its conditions. In the oil and industry, it’s never a matter of if there will be an oil spill from a pipeline, or a tanker, or a railcar, but when and where, and how much. The Northern Gateway project proposes a twin pipeline from Alberta’s oilfields to Kitimat, a distance of more than 1,000 kilometres through some of B.C.’s most ecologically sensitive habitats and waterways. On completion, it would have the capacity to transport 525,000 barrels of crude oil a day. There is little doubt about the project’s economic benefits to Canada’s economy, but B.C. rejected the proposal over concern for the environment and they should be applauded for that. There is no economic benefit for a company to spoil the environment if you also have to pay to clean it up. BP has a total provision of US$42.2 billion for clean-up costs, fines and compensation for the 2010 Deepwater Horizon spill in the Gulf of Mexico.

Enbridge and other pipeline proponents should know by now that if you don’t address the environment first, these projects and all of their tangible economic benefits, won’t move forward. TransCanada Corp.’s Keystone XL pipeline in the U.S. has met with vehement opposition from environmentalists south of the border, and Kinder Morgan’s impending proposal to expand its Trans Mountain line through B.C. is seeing similar reactions. The public sentiment over pipeline safety and protection of the environment has clearly helped to bring an end to the separation of the environment from economics in large-scale energy project planning. The end result will be more profitable and dependable pipelines and less risk for companies, taxpayers, residents, and the environment when it comes to costly disasters. It just makes economic sense to put the environment first to win quicker approval for pricey projects like the $6 billion Northern Gateway. Arguments that it would be an economic disaster if the Northern Gateway is rejected are one-sided and diminish the value of the environment in the equation. The new formula for a pipeline proposal is: environmental protection plus economic benefits equals approval. The entire country is currently counting on it.

$UH ZH KDYLQJ IXQ \HW" location. He told me Highway 13 west of Weyburn was in bad shape and snowplows had not been out. “Take the TransCanada,� he told me and so I did. The TransCanada Highway, clear of snow, had a layer of black ice. The wind was horrendous, and the trailer, with its heavy load, would fishtail with every gust of wind. That would then cause the truck to start to slide. Fortunately, it was a double lane highway and traffic was light. I gripped the steering wheel with both hands. My knuckles turned white. That was not fun. Six hours later, I finally arrived at my general location in the hills west of Shaunavon. My directions were clear. The road was well marked, with a line of large trucks parked at the entrance. Truckers were outside their cabs, heads bent over tires and I soon understood why. They were putting on chains. That did not look like fun. And it wasn’t, as I started up the hill towards the lease. The RM road that led to the lease road had been plowed earlier that day but by evening had blown in with snow. By the time I arrived, there was only a trail left in the centre of the lease road from a fuel truck sometime earlier in the night. I followed the trail and the promptings from the GPS to the lease. It was snowed in. With super high snowdrifts everywhere, and no way to turn around at the lease, I was forced to back out the truck and trailer to the RM road. I turned around there with the trailer, and then backed the several kilometres through the disappearing snow trail to the lease in the dead of night in a blizzard. Not fun. So it was no wonder that in a night of absolutely no fun, I would see the sign proclaiming that FUN was to be had in 235 kilometers. I would then be at the Casino Regina, but it would be fun, ac-

cording to the sign. With nearly two hours to drive before the turnoff at Moose Jaw, I had lots of time to think about fun. Why is fun okay to experience at a Casino but not at work? We have sayings that reinforce this belief, like: “serious times call for serious solutions� or “quit fooling around and get to work.� Research shows that having fun at work is actually a key to productivity. Having fun boosts the immune system, relaxes the body, and protects the heart for individuals. Fun in the workplace enhances teamwork, helps defuse conflict, and promotes the group bonding. A wise doctor once said, “Fun is good!� So look at work with new eyes. Look for the fun to be had. That same wise doctor also said, “From there to here, from here to there, funny things are everywhere!� That’s my philosophy as a woman in the oilpatch. There are funny things everywhere! So the next time, someone asks “Are we having fun yet?� in that sarcastic way that implies the situation is anything but fun, respond with a hearty “Yes!� and find some fun in it. For at the end of the day if you can say, like the wise doctor, “Today was good. Today was fun. Tomorrow is another one.� you will have had the last laugh. Dr. Seuss was right. “It’s fun to have fun, but you have to know how!� Nadine lives in Estevan with her husband and family, and shifted gears a few years ago, becoming a hot shot driver for the oilpatch. Her people skills are put to good use in the patch as she delivers the goods quickly and efficiently. Contact her at shifting.gears.hotshot@ gmail.com with comments or questions.

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:LOVRQ JHWWLQJ UHTXHVWV WR DFW DV D FRQVXOWDQW ɺ Page A3 The provincial government cut off funding for IPAC-CO2 and it was wound down March 31. Wilson spoke to Pipeline News a month after retiring. He stated, “To be frank, I’m not a particularly good administrator. My strength is in new ideas and innovation. I found it stressful running an organization. “I’ve been getting quite a few phone calls, people interested in consulting. “I enjoyed my time at the PTRC and enjoyed working with the oil industry on new ideas for enhanced oil recovery – innovative ideas like the use of microsensors in wormhole reservoir.” “The opportunities remain very good for enhanced oil recovery in the province. We just need to find the right processes, and more CO2. That’s a given,” Wilson said. So far, Wilson has been enjoying his retirement, finding it a lot more relaxing, with less travelling and without staring at a computer all day. He said he is “intending on taking a bit of time off.” Born in Egypt to British parents and spending his early years globe trotting as the child of a soldier, Wilson came to the University of Saskatchewan in 1972 to complete his masters and then doctorate in geology. Wilson remains an adjunct professor with the University of Regina and a Chinese university. One of Wilson’s final acts as CEO of the PTRC was to host the Canadian and Global Carbon Capture and Storage Developments Symposium in Regina on May 10. Three of his co-Nobel laureates attended.

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the option to use natural gas, a cleaner burning, more cost-efficient fuel sources than the diesel currently used as the primary fuel for oil and gas drilling rigs. The three-year agreement with CanGas is projected to generate over $2 million in revenue for SaskEnergy. The permanent CNG loading facility will not impact SaskEnergy’s ability to provide natural gas services to its residential, business or industrial customers in the Weyburn area. CanGas will use a portion of the Weyburn CNG facility’s capacity, allowing SaskEnergy to pursue other customers in this region. With significant cost savings presently between natural gas and diesel fuel, CanElson has plans to

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3DFH RI FUXGH E\ UDLO JURZWK PRGHUDWHG VRPHZKDW ZLWK WLJKWHU VSUHDGV &3 Canadian Natural Resources Limited rig released the most wells and drilled the most metres of hole during the first six months of 2013. The company drilled 710,776 metres of hole

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and rig released 549 wells to the end of June. In terms of metres drilled, second-place finisher Encana Corporation finished 529,800 metres. There was a closer finish between third and fourth place for metres drilled. Husky Energy Inc. drilled 472,171 metres during the half, while Crescent Point Energy Corp. finished 444,975 metres. Cenovus Energy Inc. finished in fifth spot with 421,374 metres drilled. Ranked by wells rig released, top operator Canadian Natural was followed by Husky (362), Cenovus (215), Encana (166) and Crescent Point (159). The top explorers in Canada over the first six months of the year, ranked by metres drilled, were Encana (153,153 metres), Royal Dutch Shell plc (127,509 metres) and Crescent Point (89,623 metres). Ranked by wells drilled, the top three explorers were Husky with 37, Crescent Point with 29 and Encana with 28. Royal Dutch Shell was the top explorer in Alberta, ranked by me-

tres drilled. The company rig released 124,481 metres of exploratory hole in the province, followed by Encana (117,343 metres) and Husky (52,796 metres). In Saskatchewan, the top explorer was Crescent Point (84,103 metres), followed by Husky (20,124 metres) and Elkhorn Resources Inc. (19,614 metres). In Manitoba, Crescent Point drilled the most exploratory hole with 2,899 metres rig released. Including both exploratory and development metres, Canadian Natural was the top operator in Alberta with a total of 581,865 metres drilled. Crescent Point led in Saskatchewan with a total of 395,033 metres, Progress was the top finisher in B.C. (157,922 metres) and Tundra Oil& Gas Partnership led in Manitoba (126,993 metres). Saskatchewan’s busiest operators were Husky (145 wells), Crescent Point (136), Northern Blizzard Resources Inc. (104), Baytex Energy Corp. (58) and Teine Energy Ltd. (55).

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6SHHG GDWLQJ ZLWK RLO FRPSDQLHV Éş Page A5 This year, Birchwood Resources, Canadian Natural Resources, Osum Oil Sands, Cenovus Energy, Devon, Harvest Operations, Husky Energy, Imperial, Pengrowth and Shell provided the networking opportunity for exhibitors. “There were multiple exhibitors. They told us they’ve been to multiple trade shows and this is one of the top trade shows they’ve been to. That’s really good feedback,â€? added Ducharme. The opportunity for exhibitors to meet producers was dubbed “speed datingâ€? by some of those who took part. “That’s a good way to explain it,â€? said Ducharme with a smile. “You get five minutes with the producing companies and they’ve got their procurement contract people in there. “What I’ve been saying to exhibitors is that at your booth you can’t control if the big guys are going to stop by your booth. But in the oilmen’s room, you get to control the quality of the contact that you make with those producers. “If you are interested in that, you are going to want to book a booth in the 2015 show.â€? The 2013 show featured approximately

20 more indoor exhibits and about five more outdoor exhibits than last time. There was also a hiccup-free registration process for everyone. “It well really fast and everything went excellent,� said Megan Naylor, registration chair and executive assistant at the chamber. “We hired a company called Conexsys and our registration went very well. It’s an awesome process.� Exhibitors were also given the chance to rent a Conexsys bar code scanner to collect contact data from booth visitors but only about 15 companies opted for the service. One visitor was to win a $3,500 travel voucher, sponsored by Heavy Crude Hauling in Lloydminster, to help increase networking at the booths. “Visitors have to collect five different slogans from five different companies and then they can enter to win it. That’s a pretty sweet prize,� said Oliver. Some exhibitors pulled out all the stops to attract traffic to their booth including Seko Construction which added a VRX full motion auto racing simulator to their exhibit space. “It’s just like driving a F1 racing car,� said

Naylor. “It’s amazing. I was interested in trying it out myself.� Thinkwerx employed a 3D printer that created plastic objects such as a desktop lamp to attract interest to their line of promotional products. “Scorpion Industries actually has scorpions in a tank,� said Naylor as the show wound down. Visitors and exhibitors were treated to a sold-out appreciation banquet with guest speaker Cal Dallas, Alberta minister of International & Intergovernmental Relations. Early risers also got the chance to hear two breakfast speakers on the subject of contracting procurement with the major producers in the area. The event kicked off on June 18 with an evening barbecue hosted by Osum Oil Sands at the chamber of commerce office at Shaw House on the shores of Moose Lake.

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Grizzly Environmental StufďŹ ng Box Reduce environmental impact of packing leaks and rod string failure with our Grizzly Environmental StufďŹ ng Box (GESB). Bolted on to the existing stufďŹ ng box, the GESB acts as secondary containment as well as lubrication for the rod string. In case of a break, the apper shuts closed and prevents any spills on the wellsite, which saves you on production downtime and soil or water contamination. The versatile GESB can be used with a pressure gauge, pressure switch, sight gauge, or other leak indicators to provide notiďŹ cation that your wellhead needs servicing. Visit our website to view the product video!

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By Geoff Lee Kindersley – Grassland Environmental Inc. plans to grow like a weed in the coming months from its home base in Kindersley, Saskatchewan. The environmental and regulatory consulting company, with a core staff of professional agrologists, biologists and soil scientists, has recently set up offices in Calgary, Saskatoon and Swift Current. Grassland specializes in environmental monitoring, site assessments, vegetation and wildlife surveys, and soil assessments with Kindersley being one of the busiest areas for work. “Kindersley has been booming. There’s lots of drilling going on,” said Trent Klarenbach, owner and president. “We’re fortunate to be busy where we’re located; however, we’ve been expanding outside the boundaries of Kindersley. “It takes the people in our company to be able to do that and maintain the customer relations that we have already. Our growth is based on the people we have. “We’re able to offer some real cost-effective solutions based on our locations and the number of personnel we have. “With our personnel, we can offer a very quick service and quick turnaround.” The recent hire of Saskatchewan-trained biologist Patrick Legg, from Alberta, as a site assessment and remediation team leader has helped to fast track their growth plans in that division. “It’s nice to come back to Saskatchewan and be able to move forward with a great company like Grassland that is growing from the ground up again with really good ideas and people on staff,” said Legg who is originally from Regina. “We are diverse in what we do, but our focus is mostly on oil and gas upstream. The top activities in this area are environmental permitting, site assessments and remediation. “It’s not just spills, but pretty much everything to do with after the well is finished production and is either cut and capped or is about to be abandoned and cut and capped. “In the Kindersley area, we are performing some gas migration tests for some well abandonment projects.” “We are also doing some site assessments and some applications of reclamations.” An Acknowledgment of Reclamation documents that the well site has been returned to its pre-disturbance conditions. The overall goal on all of Grassland’s projects is to meet all federal and provincial environmental and regulatory requirements while maintaining their clients’ schedules. “We are working for the oil and gas companies. Our goal is to facilitate their activity to meet their schedule,” said Klarenbach. “Our clients’ costs increase dramatically when they are unable to maintain their schedules. “The regulations are becoming more complicated and some of the work we do involves the jurisdiction of the federal government. ɸ Page A13

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Éş Page A12 “We have more than 10 years of experience with that area. We understand what our clients need in order to keep their schedules.â€? Saskatchewan is working on developing a new environmental code that will consolidate environmental requirements into one streamlined regulatory tool. “The Saskatchewan government is finding a balance between exploration, production and the environmental requirements,â€? said Klarenbach. Accurate environmental evaluations for oil and gas development projects on private, provincial and federal land in Saskatchewan are critical in order to gain approval from the Ministry of Environment. “I think it’s a huge portion of it. The government wants to know what is there and how we are going to mitigate any environmental sensitivities before they start any construction on site,â€? said Legg. “If you are able to get out before they do any of the work and know what the soil conditions are and what plants were originally there, it’s much easier at the end to make sure it matches up.â€? Pre-site assessments are the key to identifying lease sites that may contain sensitive

vegetation and wildlife such as burrowing owls, ferruginous hawks and Sprague’s pipits in the region. “There’s a lot of habitat for species of concern and we go out at daybreak to conduct wildlife surveys in keeping with government regulations� said Legg. “If there are any species identified, the project may be shifted to a different location or site activity is scheduled during a time that will not negatively affect those species. “Our goal is to facilitate the project while advising our clients in order to follow the government regulations.� Legg said previous perceptions that environmental companies were out to stop production and oil companies just wanted to drill wherever they could are going the way of the dodo bird. “The owners of oil companies always want to do best practices. It’s always been in their best interest to comply and follow with the environment regulations,� he said. “There have been a lot of changes over the years to meet those requirements. “It’s been a learning process and there is new technology introduced all the time to minimize the environmental aspect.� If a project encroaches on native

grassland on private land, the Ministry of Environment recommends avoiding topsoil stripping by locating the lease in the most level area. Stripping can be reduced or eliminated on level ground by using hydraulic jacks and planking. Companies are required to re-seed disturbed grassland with a seed mix of native species common to the area for reclamation purposes. ɸ Page A14

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dĆŒÄžĹśĆš <ĹŻÄ‚ĆŒÄžĹśÄ?Ä‚Ä?Ś͕ Ĺ˝Ç ĹśÄžĆŒ ĂŜĚ Ć‰ĆŒÄžĆ?Ĺ?ĚĞŜƚ ŽĨ 'ĆŒÄ‚Ć?Ć?ůĂŜĚ ŜͲ Ç€Ĺ?ĆŒŽŜžÄžĹśĆšÄ‚ĹŻ /ĹśÄ?͕͘ Ä?Ä‚Ć?ĞĚ Ĺ?Ĺś <Ĺ?ĹśÄšÄžĆŒĆ?ůĞLJ Ç Ĺ?ĹŻĹŻ Ä?Äž ĆŒÄžÄ‚ÄšĹ?ĹśĹ? Ä‚ Ć?ĆšĹ˝ĆŒÇ‡ Ä‚Ä?ŽƾĆš ĹšĹ?Ć? Ä?ŽžĆ‰Ä‚ŜLJ Ĺ?Ĺś ƚŚĹ?Ć? žŽŜƚŚ͛Ć? Ĺ?Ć?Ć?ƾĞ ŽĨ WĹ?ƉĞůĹ?ŜĞ EÄžÇ Ć?͘ <ĹŻÄ‚ĆŒÄžĹśÄ?Ä‚Ä?Ĺš ŚĂĆ? Ɖƾƚ ƚŽĹ?ÄžĆšĹšÄžĆŒ Ä‚ ƚĞĂž ŽĨ Ć‰ĆŒŽĨÄžĆ?Ć?Ĺ?ŽŜͲ Ä‚ĹŻ Ä‚Ĺ?ĆŒŽůŽĹ?Ĺ?Ć?ĆšĆ?Í• Ć‰ĆŒŽĨÄžĆ?Ć?Ĺ?ŽŜÄ‚ĹŻ Ä?Ĺ?ŽůŽĹ?Ĺ?Ć?ĆšĆ? ĂŜĚ Ć?Ĺ˝Ĺ?ĹŻ Ć?Ä?Ĺ?ĞŜĆ&#x;Ć?ĆšĆ? ƚŽ žĞĞƚ ƚŚĞ Ĺ?ĆŒĹ˝Ç Ĺ?ĹśĹ? ĞŜǀĹ?ĆŒŽŜžÄžĹśĆšÄ‚ĹŻ ĂŜĚ ĆŒÄžĹ?ƾůÄ‚ĆšĹ˝ĆŒÇ‡ ĆŒÄžͲ Ć‹ĆľĹ?ĆŒÄžĹľÄžĹśĆšĆ? ŽĨ ƚŚĞ Ĺ˝Ĺ?ĹŻ ĂŜĚ Ĺ?Ä‚Ć? Ĺ?ŜĚƾĆ?ĆšĆŒÇ‡ Ĺ?Ĺś ^Ä‚Ć?ĹŹÄ‚ĆšÄ?ĹšÄžÇ Ä‚Ĺś ĂŜĚ ĹŻÄ?ÄžĆŒĆšÄ‚Í˜ dŚĞ Ä?ŽžĆ‰Ä‚ŜLJ Ĺ?Ć? ĞdžƉĂŜĚĹ?ĹśĹ?Í• Ç Ĺ?ƚŚ ĹŻĹ˝Ä?Ä‚Ć&#x;ŽŜĆ? Ĺ?Ĺś ^Ä‚Ć?ĹŹÄ‚ĆšŽŽŜÍ• ^Ç Ĺ?ĹŒ ĆľĆŒĆŒÄžĹśĆš ĂŜĚ Ä‚ĹŻĹ?Ä‚ĆŒÇ‡Í˜ WŚŽƚŽ Ä?LJ 'ÄžŽč >ĞĞ

Éş Page A13 The growing demand for environmental services is in response to the oil and gas boom in Alberta and new regulatory requirements that

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are spilling over into Saskatchewan with the proposed environmental code. “That’s been the big game changer in the last four or five years,� said Legg. “A big focus now is on environmental science. They need skilled people to provide this service. “It’s a huge industry that employs a lot of people. Everyone is there is to do the best they can as safely as possible.� Grassland has a full-time safety consultant on staff and registration on ISNetwork and ComplyWorks. The management team includes Brett Delday, Calgary general manager and site assessment and remediation manager, and Dena Delday, Kindersley general manager who is the team lead for pre-site assessments. “We have hired graduates from Lakeland College or from the U of S,� said Klarenbach. “A lot of our people, including me, are pro-

fessional agrologists or agrologists in training to achieve their professional designation. “Our goal is to attract good qualified people and offer the best service we can. Also, in the last 12 months we have really been working on diversifying in and outside the Kindersley area. “The Calgary office is very important to us and we are certainly expanding into Alberta more than we have in the past.� Grassland has also changed its business philosophy in the last couple of years from a “do it alone� company to collaborating more with other environmental companies. “We are building those relationships in order to meet our clients’ needs,� said Klarenbach. “By doing that we reach out to other environmental companies to assist us, and in turn, we are ready to return the favour. It is all about providing the most costeffective solution to our clients.�

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, 'HQW 2LOÀHOG VLJQV SRLQW WR JURZWK Bonnyville – The need for regulatory oil and gas signs is the business driver signs, battery signs, traffic signs and WHMIS and dangerous goods signs. for I-Dent Oilfield Sign Solutions in Calgary. They also supply the metal posts and hardware to erect them. The company provides a complete A to Z product catalogue on its website “We also make hard hat decals for individual companies and also ‘block to enable clients to order regulatory out’ decals. When a company changes lease, pipeline and facility signs laminames, they have to change all their nated on aluminum or plastic. logos very fast,” said Wright. I-Dent business development reps Flex and Wright, who were both Steve Flek and Matt Wright took a wearing hockey sweaters sporting the display of oilfield signs to the Bonnyville company logo in keeping with a corand District Oil and Gas Show with porate core value of having fun while hopes of making a bigger sales dent in working, manned the I-Dent booth. the regional market. “It attracts attention to our booth, “We’re hoping to get our name out but we are all team players here,” said there. This is a really good market for us. Flek. We want to get our name out there to a “We make a fun atmosphere, and lot of industry,” said Flek. we’re here to have a good time.” “We specifically focus on the regulaI-Dent is a privately owned Canatory signs. That is our niche market.” dian company that is growing in lockOil and gas companies can build step with the oil and gas industry across their own lease, facility, and pipeline Western Canada. signs from an online template resulting “Regulatory lease signs, facility in a quick turnaround time. signs and pipelines are our main prodAs an example, a pipeline sign might ucts,” stressed Wright. include a warning about the presence of “We are in a growth period. We are EŽƟĐĞ͗ ͚dŚĞ ƉŝƚLJ ƚƌĂŝŶ ŚĂƐ ũƵƐƚ ĚĞƌĂŝůĞĚ Ăƚ ƚŚĞ ŝŶƚĞƌƐĞĐƟŽŶ ŽĨ ƐƵĐŬ ŝƚ ƵƉ Θ ŵŽǀĞ a high pressure sour oil pipeline, along expanding rapidly in Western Canada. ŽŶ͙͛ dŚŝƐ ũŽŬĞ ƐŝŐŶ ŚĞůĚ ďLJ /Ͳ ĞŶƚ ƌĞƉ DĂƩ tƌŝŐŚƚ͕ ůĞŌ͕ ďĞƐŝĚĞ Ă ŐƌŝŶŶŝŶŐ ^ƚĞǀĞ with an emergency phone number. Saskatchewan is a very large market area &ůĞŬ ŚĞůƉĞĚ ƚŽ ďƌĞĂŬ ƚŚĞ ŝĐĞ Ăƚ ƚŚĞ ĐŽŵƉĂŶLJ͛Ɛ ƚŚ Ăƚ ƚŚĞ ŽŶŶLJǀŝůůĞ Žŝů ƐŚŽǁ͘ A typical lease sign would include for our signs, and we also do work in the LSD location, an emergency phone Manitoba and northern British Columnumber and some “authorized personnel only” wording about access. bia.” “We make them all in-house. Most of ours are done on a flatbed printer Not all signs made by I-Dent are serious ones, however, with comedy sigand we laminate on top of that,” said Wright. nage coming under the miscellaneous or camp categories. “All of our aluminum signs have a five-year warranty.” “The most unusual signs would be some of the camps up in the oilsands I-Dent offers its customers a long-lasting fade resilient, environmentally area,” said Wright. friendly UV protected laminated sign. “They try to get quite comical – ‘Try not to shoot the workers’, and ‘Don’t The company makes a variety of safety signs, access signs, pipe marking feed the bears’ kind of stuff.

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6DJH WKHUPDO SURMHFW SURSRVHV ESG 3KDVH „ By Geoff Lee Bonnyville – We’ve got the honey, you’ve

got the money, so let’s together and make a deal.

That’s what Birchwood Resources Inc. president Alex Lem-

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mens had in mind as he prepared to depart the Bonnyville & District Oil and Gas Show for a trip to Toronto, New York and Houston where he planned to meet with a number of investors. Lemmens had meetings lined up with a dozen or more investors in a CIBC-sponsored business trip. As president, his mission is to raise awareness and capital for his company’s proposed Sage thermal project near Cold Lake with a Phase 1 target of 5,000 barrels of oil per day from their bitumen leases. “It’s an interesting little play. The pool itself is probably one and half billion barrels, believe it or not,� said Lemmens in June 20 interview. “Our share of it is about 200 million barrels in place, and we feel there is about 95 million barrels of recoverable oil. “We’re pretty excited about it.� The development site lease is located near Shell’s Orion and Husky’s Tucker Lake SAGD projects Birchwood filed an application with Alberta regulators in late 2012 for its Sage commercial demonstration pilot

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project that will use steam assisted gravity drainage, or SAGD, to recover oil from bitumen. Lemmens anticipates regulatory approval for Sage in the next one to two years with the capacity to expand to 10,000 barrels per day. All phases are subject to financing. “SAGD is an expensive business. The application itself will cost us over $2 million to prepare,� he said. “We will basically be a $230 million project for all the delineation wells, the plant itself, the wells that we have to drill and all the infrastructure that’s required.� Utilizing cold production at Sage, Birchwood is currently producing three to four barrels of oil a day from one of its three delineations wells. It is hoped this will indicate its thermal potential. “The beauty of that is, it’s a test well. If it produces anything without steam – when you add steam you will have a barnburner of a producer,� explained Lemmens. “It’s producing cold just to see what kind of oil we would get out of it so that can do the assay analysis to properly design the facility to manage the environmental impact. “The better you build your facility, the less impact you will have.�

Sage will source and recycle brackish water from the McMurray formation with steam and oil production targeted in the higher Clearwater and Grand Rapids formations using horizontal well pairs. “The Clearwater is our main potential producing zone. In our area, it averages 25 metres thick with oil saturation over 80 per cent. We are pretty excited about that,â€? said Lemmens. “We have a secondary horizon as well in the upper Grand Rapids. It’s about an eightmetre reservoir.â€? A second delineation well is being used an observation well to test how well the producing formations will hold steam, while the third well could produce heavy oil or act as the brackish source well. Lemmens hopes Birchwood can produce its first steam at Sage sometime in 2015 and will have the potential to partner with some of the major producers in the play in the future. “That project can sustain about 10,000 barrels on our own. If we do a deal with our neighbours to the south, they would have over 80 per cent of the pool,â€? said Lemmens. “It’s not on their radar for the next 20 years because they have a stack of large projects. They said basically ‘get your project approved, build a plant and let’s talk.’ ɸ Page A17

707,305, 5,>: (\N\Z[ ɺ Page A16 “For the province of Alberta, it’s an exciting opportunity to get a decent oilsands project going where most of the big projects are sort of at the end of their development stage.” Birchwood is a privately-owned junior oil and gas company that was one of 10 producing oil companies invited to take part in a procurement contracting exercise for exhibitors at the Bonnyville oil show. “This is a fantastic venue for the suppliers to come and meet the oil companies themselves and make decisions about where they are going to spend their money and who they are going to spend it with,” said Lemmens. “It’s really good because you get a chance to meet some of the old friends you haven’t seen in awhile.” Lemmens began his career in the Bonnyville area in 1984 and has worked for companies such as Imperial Oil, ConocoPhillips and Husky Energy at Tucker Lake. He also worked in the United Kingdom, Africa, South America and the United States. Lemmens hopes to position Sage to local and international investors as a long life, slow decline heavy oil production play that he likes to develop. “That fast-paced Bakken or Shaunavon where you drill your well and frac it – you might get 18 months out of it – that’s a tough game,” he said. “That’s where a lot of junior companies in Calgary are floundering right now. “Our type of reserves will have a 30year life. We will have a very low decline ratio. “The money that’s out there wants a return and they want an instant return. They want sustainable cash flow without having to reinvest a lot of capital, but still get a dividend payout. “That’s the sort of target market for financing – it is ‘we’ll give you money, you give us a dividend. We want a dividend. We have to have it because everybody that we sell

our stock to wants it.’ “Those are the sorts of people we are approaching.” Lemmens’ credibility is backed by the fact that he helped to develop a small oil company that operated in the Shaunavon, Saskatchewan area that was sold to Crescent Point Energy two years ago for $204,000 a flowing barrel. That’s an extremely high valuation metric compared to what current oil market conditions would fetch. “Interestingly enough, the market is difficult right now, so we are looking at some acquisitions not only in the Shaunavon area again, but also in heavy oil in Saskatchewan,” said Lemmens. “Husky has done a tremendous job. They are doing a number of small but very profitable projects in Saskatchewan and they are going to continue to do that. “That’s what I see as a model.” Lemmens said the realized price for bitumen in the Bonnyville and Cold Lake area is about $45 to $50 per barrel. He said the economics are a source of anxiety for some of the local contractors and exhibitors he spoke to at the oil show. “The majors are very reluctant to spend big dough. They are all looking for discounts right now and that’s frustrating,” said Lemmens. “You built a business, you’ve got people working for you, you’ve spent capital money on equipment. Gosh, I feel sorry for them. They’ve got to find more work. “We hope that we can help with that because we want to stay local. A number of our shareholders are from this area.” Lemmens said the Sage thermal project has the advantage of being in the Cold Lake area which is close to infrastructure and supply lines. “We’ve got big solid storage facilities, pipeline facilities, processing facilities, electrical supplies and water supplies in a brackish formation that appears to be large and sustainable.”

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KƐƵŵ Kŝů ^ĂŶĚƐ ŚŽƐƚĞĚ ĂŶ ŽƉĞŶŝŶŐ ďĂƌďĞĐƵĞ Ăƚ ^ŚĂǁ ,ŽƵƐĞ ƚŽ ŬŝĐŬ Žī ƚŚĞ ŽŶŶLJǀŝůůĞ Žŝů ƐŚŽǁ͘ >ĞŌ ƚŽ ƌŝŐŚƚ ĂƌĞ KƐƵŵ ĞŵƉůŽLJĞĞƐ :ĂĐŽď ^ŚĂƉŬĂ͕ ZŽď DĂƌƟŶ͕ <ĞŝƚŚ ƵƌĞĂƵ͕ dƌĂǀŝƐ ,ĞŶƐŽŶ ĂŶĚ dƌĞǀŽƌ Ƶƌƌ ǁĞĂƌŝŶŐ ƚŚĞŝƌ ͞hŶůŽĐŬ WŽƚĞŶƟĂů͟ dͲƐŚŝƌƚƐ͘ KƐƵŵ ĐŽŶƟŶƵĞƐ ƚŽ ƉůĂŶ ĂŶĚ ĨƵŶĚƌĂŝƐĞ ƚŽ ƐƚĂƌƚ ĐŽŶƐƚƌƵĐƟŽŶ ŽŶ ŝƚƐ ůŽŶŐ ĂǁĂŝƚĞĚ dĂŝŐĂ ^ ' ƉƌŽũĞĐƚ ŝŶ ƚŚĞ ŽůĚ >ĂŬĞ ĂƌĞĂ͘

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Bonnyville – Enviro-Pans West Ltd. has developed the proverbial better mouse trap for containing heavy oil leaks from cyclic steam stimulation and steam-assisted gravity drainage wellheads. The Edmonton-based company took its Enviro Pan oil recapture system for CSS and SAGD wellheads to the Bonnyville oil show in June to promote its features and benefits. “We’re finding that it’s collecting the oil as best as anything that’s been done in the industry up to this state,� said Elvis Lafleur, general manager of sales and marketing. “It’s totally patented. Anyone who has to do any work can work safely – they open it right up.�

The Enviro Pan is made from 14-gauge steel and comes in two equal size pieces that fit around the wellhead. It is held together by two pins that can be pulled for easy access to the wellhead. Pulling one pin allows the pan to open and close around the wellhead like a pair of scissors. The top of the pan is covered by a metal grating that doubles as a sturdy work platform. “They can get up there and work on their stuffing boxes. They can work with any valves or replace any valves without any problem at all, and the pan can stay right there,� said Lafleur. “Anything that leaks out will go right into the pan.�

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6DIHW\ ÀUVW VWHS DW $79 UHQWDO VKRS Bonnyville – Safety training for oilfield and industrial customers is top of mind at Commercial All-Terrain Rentals in Bonnyville. The local business owned by Denis Hurtubise and his family rents Argos, side by sides, quads, snowmobiles and trailers as well as offering Canadian Safety Council (CSC) certified training courses for equipment operators. “Safety training is recommended,” said Hurtubise. “It’s not so much that we call for it; it’s the companies that are renting. They want their employees to be trained and know how to use the equipment.” Hurtubise jumped at the chance to promote a new Argo CSC certified operator training course along with his first new Argo 8x8 XTI rental during the Bonnyville & District oil and Gas Show June 19-20. “We are now the CSC certified course for Argo which never had a certified course before,” said Hurtubise. The two-day course for Argo rental operators covers everything from pre-ride inspection and riding strategies on the first day, to hauling cargo and amphibious operations on day two. A valid boater’s licence is required for the amphibious operations training section. Safety training for commercial uses is provided by Denis’s son, Justin, who is one of only a few CSC factory certified trainers in Canada. Argos are Canadian-engineered tank-like vehicles, designed for manoeuvering tough, changing terrain – everything from ice and snow to small bodies of water and thick forest. Commercial All-Terrain has 17 Argos in their rental pool and all of them see very high use by environmental groups, surveyors and oilfield workers. “By far, the Argo is the most popular rental because quads and stuff like that – everyone can own them, but Argos are expensive and high maintenance. Lots of care has got to be taken with them,” said Hurtubise. “You are always forever tinkering with them to make sure they are in good shape.”

Clariant Oil Services

The high cost of purchasing and maintaining an Argo is what motivates oilfield companies to rent from Commercial All-Terrain for short-term work. “They don’t have to get the insurance and do the maintenance. They don’t have to hire mechanics,” said Hurtubise in reference to those who rent the Argo. “You just pick it up. You use it for a week. It’s a lot cheaper than paying $30,000 to $40,000 for two weeks work. “When they get a special project, they rent them. It’s all a write-off – a 100 per cent write-off. They don’t have to look after them.” Commercial All-Terrain offers daily, weekly and monthly rental rates with an up-to-date rate sheet that can be downloaded from their website.

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W Page A23 The company, which is one of the fastest growing in the area, had an outdoor exhibit at the Bonnyville oil show. “We’ve been here two years and from the first year, we tripled our sales and it’s just skyrocketing. There’s lot of call for it,� said Hurtubise. “It’s all muskeg around us, so everyone wants the vehicles.� The new six passenger Argo 8x8 XTI that Hurtubise took to the show is a more expensive commercial grade than the regular Argo HDi units that Commercial All-Terrain rents. All of the Argo models though, are environmentally friendly with low pressure for minimal ground disturbance and can be rented with tires or tracks. “The track gives you low ground pressure. You’ve got about .6 psi for ground pressure,� said Hurtubise. “A lot of companies are looking for that because they don’t want any ground disturbance. That’s what this is designed for with the tracks.� The all-season Argo is mostly rented by companies working to the north of Bonnyville in some of the toughest conditions imaginable, including flooded areas, soft terrain, deep mud and snow, and ice. “Up north is where you’ve got the muskeg and the swamps and these vehicles are amphibious,� said Hurtubise.

“If you come across a beaver pond, you can still cross it. Basically, nothing really stops you. “With the tracks, you go a lot further than without them. It gives you floatation and to stay on top of the ground instead of breaking through. The tracks also come in handy during the winter when rentals were brisk this past year. “This past winter was busy with all the snowfall we had. Argos were going out with tracks. They’re an all-season vehicle,� said Hurtubise. “You can go out in the winter. You can go out in the summer. They’ve got cabs and heaters and windshields for the winter.� Most of the side-by-sides and quads and snowmobiles that Commercial AllTerrain rents are used for field work on firmer ground south of Bonnyville. Commercial All-Terrain will also make deliveries within a reasonable distance from Bonnyville providing the rental will cost at least $1,500 or more. They also supply helmets and other accessories such as first aid kits and satellite phones. The company does all of its maintenance in-house, and it is co-ordinated by Denis’s other son Jon, who is the shop manager. Denis’s wife, Melody, is the office manager and his sister in-law Jennifer Ingram is the account manager.

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By Geoff Lee Bonnyville – Paradox Access Solutions, which is based in St. Albert, Atla., markets itself as being in the business of providing a stable road surface for unstable ground. The company is turning industry heads with its ability to build roads over swamps and muskeg by using a honeycomb structure called Neoweb which utilizes cellular confinement technology. Crews lay down a textile on a bare or wet surface, cover it with Neoweb, infill the cells with sand, then cap with gravel and groom and slope. “It stabilizes the road and it’s very good for the environment,” said territory manager Mike Demko, who brought Neoweb samples and project videos to the Bonnyville & District Oil and Gas Show. “It is cellular confinement and what’s used inside the cellular confinement is sand or gravel. It stabilizes the road. It’s very good for the environment. “SDR (Alberta Environment and Sustainable Resource Development) and the environment love it. They don’t have to disturb any kind of vegetation in muskegs or along existing roads. “We just go ahead and we lay this down, and in no time it’s ready to go, and you can move your rigs in and your heavy traffic. “This is where we’ve got a lot of work right now in order to get companies into places where they can’t get in to do any drilling,” added Demko.

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Sharing the Energy

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

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W Page A25 According to a product video, if you are going somewhere, Paradox can get you there with Neoweb. “We are getting them there within days. They are able to get their rigs in or any kind of vehicles – log trucks also,� said Demko. A video shows Paradox building a 3.5 kilometre road over muskeg near Conklin, Alberta. It was a project undertaken for Meg Energy in 2012, and involved 40 days during which they utilized the base textile and Neoweb composite structure to complete construction of the road. That road was designed and engineered by Stratum Engineering to withstand one million pounds. Paradox has been providing industrial access mats, swamp mats, rig mats, ground reinforcement and related services for the pipeline, utility, municipal, general construction, and the oil and gas industries in Western Canada since 2004. The company sells and rents, installs, maintains and removes matting for its clients. Paradox is the Canadian distributor for All Terrain Mats and has patented a pipeline crossing to provide clearance over pipelines. After the company acquired the Canadian rights to the product three years ago, the Neoweb division has grown from six employees to more than 100 today as the technology has taken hold.

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707,305, 5,>: (\N\Z[ W Page A26 The geocloth base layer prevents the sand infill and gravel topping from washing away. “It’s very good for the environment and the maintenance cost is reduced tremendously. You are not getting washouts,� explained Demko. “If you have nothing confining your sand or gravel that you use to build a road, it gets pushed out to the sides. “So you have an eight-metre road and in time with heavy loads you have a 10-metre road. “Being a cellular confinement structure with Neoweb, when you build an eight-metre road, in five or 10 years, it’s still going to be eight-metres.� Neoweb has polymers in it so it doesn’t break down and comes with a 75 year warranty. The product can withstand a temperature range from -60 C to plus 60 C. It comes in sections eight by 2.5 m that are stapled together to form a composite system for

the infill process. The Neoweb is available in different heights from three to six inches and in different strengths. “It’s like a magic carpet. It’s all confined together and you drive over top of it and it does not move at all,� said Demko. Neoweb has generated a steady market for oilfield road building over muskegs and rebuilding municipal roads that take a beating from heavy oilfield traffic. “Existing municipal roads are a very hot item right now – repairing roads,� said Demko. “The roads that were built years ago can’t stand the traffic that’s going on them today because of the increase in the oil industry. “So today, we are going into municipal roads to be able to repair and fix them with collaboration between municipalities and the oilfield. “We are all over the province of Alberta and

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into Saskatchewan somewhat.� Paradox has also completed a few lumber yard projects for CanFor in British Columbia with the neoweb cellular confinement technology. Neoweb is ideal for landfills and reservoirs, slope and channel protection, erosion control earth stabilization and retention, and load support for paved and unpaved roads, railways and lease pads. Demko said the industry reaction to the technology has been positive, as was the traffic at his booth at the oil show. “In the last three years, we’ve been introducing this to different areas of the province. Some people have heard of it and are coming over to understand how it works,� he said. “The Bonnyville show has been very good so there’s a lot of interest. A lot of people want me to come and do presentations in the next week or two.�

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

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& 9 3RUWDEOH EXLOGV FRPI\ ZRUN VSDFHV Bonnyville – C & V Portable Accommodations Ltd. is experiencing a market breakthrough with custom sales of high end double-wide command centres for heavy oil thermal sites. A large number of thermal projects in the Cold Lake area brought the company to the Bonnyvillle & District Oil and Gas Show in June to spread the word about their upscale offices and trailers. “We are pumping out double-wide command centres as we speak,� said Kevin Gadomski, a rental and service representative. “That’s where we really excel on an SAGD (steam-assisted gravity drainage) project. It brings all of your services into one location.� A sample layout for a 28x64 ft. doublewide command centre features a lab, geologist office, lounge facilities, a services office, a foreman’s office and an orientation office “Our customers say there is an added cost to have a double wide complex for a SAGD, but at the end of the day, they save money because their communications are right there at their fingertips. “They can lean back and talk with the directional guys – their geologists – everyone’s under one roof.� C & V Portable specializes in the design and manufacture of all types of portable buildings that are geared toward the oil and gas

makes a very nice product,â€? said Gadomski. The upscale features are in demand, said Gadomski, because customers are working in them for up to 30 days at a time. “It’s their home. Θ s WĹ˝ĆŒĆšÄ‚Ä?ĹŻÄž Ä?Ä?ŽžžŽÄšÄ‚Ć&#x;ŽŜĆ? žĂŜƾĨÄ‚Ä?ĆšĆľĆŒÄžĆ? Ä‚ Ç€Ä‚ĆŒĹ?ĞƚLJ ŽĨ ƾƉĆ?Ä?Ä‚ĹŻÄž Ç ÄžĹŻĹŻ Ć?Ĺ?ƚĞ ĆšĆŒÄ‚Ĺ?ĹŻÄžĆŒĆ? ĂŜĚ ŽĸÄ?ÄžĆ? Ä‚Ć? Ç ÄžĹŻĹŻ Ä‚Ć? Ć‰Ĺ˝Ç ÄžĆŒ Ĺ?ÄžĹśÄžĆŒÄ‚Ć&#x;ŽŜ ƾŜĹ?ĆšĆ? ĨĆŒŽž Ĺ?ĆšĆ? Ä?Ä‚Ć?Äž Ĺ?Ĺś Ä‚ĹŻĹ?Ä‚ĆŒÇ‡Í˜ dŚĞ Ä?ŽžĆ‰Ä‚ŜLJ Ĺ?Ć? They want to become Ä?ĆľĆŒĆŒÄžĹśĆšĹŻÇ‡ Ä?ĆľĹ?ĹŻÄšĹ?ĹśĹ? Ä‚ ĹśÄžÇ Ď´ĎŹÍ•ĎŹĎŹĎŹ Ć?Ć‹ĆľÄ‚ĆŒÄž ĨŽŽĆš ĨÄ‚Ä?Ĺ?ĹŻĹ?ƚLJ ƚŽ ŏĞĞƉ ƾƉ Ç Ĺ?ƚŚ ƚŚĞ ÄšÄžĹľÄ‚ĹśÄšÍ˜ WŚŽƚŽ comfortable in their Ć?ĆľÄ?ĹľĹ?ƊĞĚ working environment. If industry. custom builds anything pad work – anything we excel in the creature They custom make from double-wide com- from a 60 man camp to comforts, they will be and sell everything facility offices.â€? mand centres to 50/50 repeat customers,â€? he from site offices, remote sleepers on our rental C & V Portable’s said. operators’ camps and double-wide command fleet to site offices as “We actually go for rig manager trailers to centres are loaded with well,â€? said Gadomski. the higher end well site wheeled well services, The rental fleet also creature comforts with trailers. That’s where we labs and lunch rooms. includes single comhigh-end finishes and have always positioned The rental side mand centres, 50/50 appliances throughout. ourselves in the market.â€? ranges from foreman “Our 50/50s are foreman trailers, medic The company is in a units and command gorgeous. They are all trailers, field construcgrowth mode and they centres to sleeper units tion offices and sleepers. hard wood laminate recently broke ground and power generation “We also have a flooring with stainless on a new 80,000 square services. steel appliances – it direct sales side that foot manufacturing “Basically, we are a well site provider of trailers and offices and power generation,â€? said Gadomski. “The Bonnyville area is a target. That’s why we’re here at this show. “We don’t have a lot of work right here right now, but we are looking to expand into this area. “What’s happened is the double-wide complex has been such a big hit. We have at least five double-wide complexes out there working right now on SAGD projects,â€? Gadonski said. A double-wide command centre in conjunction with sixperson sleepers are a popular combination for oil and companies due their limited footprint. “A lot of work is with Vermilion, Shell and Talisman on the

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facility in Calgary to replace their existing 25,000 square foot shop. Gadomski attributes their success to listening to their customers’ needs when it comes to a work office or camp facility. “We visit them in the field and we are agile enough that we can go to our manufacturing facility and make any changes the client wants,� he said. C & V Portable also has a fleet of service trucks on the road and offers full rig-in, rig-out service for their products. “We have qualified suppliers that work with us for trucking,� said Gadomski.

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)ODPHOHVV KHDWHUV KRW LQ %RQQ\YLOOH DUHD Bonnyville – They are not selling as quickly as those proverbial hotcakes, but there is a strong demand for flameless heaters that are sold by Heater Sales & Service in the Bonnyville and Cold Lake area. The Nisku-based company generated a lot of regional sales interest in the portable Mac 750F flameless heater and a Flagro FVO-400 indirect heater which they displayed at the Bonnyille & District Oil and Gas Show. “It’s been pretty good. The weather’s helped. The traffic has been pretty good,� said Kurtis Wandler, general manager of sales in reference to activity in his booth. “The Foster Creek area is a big area for the flameless play. We have quite a few units up there so the show has been a pretty good success for us in heater sales.�

Cenovus is continuing to construct new buildings that need safe heat at its thermal oil project at Foster Creek. By 2018, the project will have the capacity to produce 295,000 barrels per day. Flameless heaters are also needed by a variety of companies for heating and thawing at other large thermal projects in the region. “It’s an all-purpose unit, especially for the cold conditions,� said Wandler. The units are also ideal for thawing and heating of wellheads, pipelines or cold engines and equipment. “The applications are just basically anything that requires heat any time of the year, from construction to oil and gas and mining and all the way to farming,� said Wandler. “A lot of buildings get heated up, or if you have a piece of equipment down like a track hoe that

needs an hydraulic ram fixed, you can tarp it in and blow heat it.� The Mac is available in four sizes ranging from the 550F that produces up to 550,000 BTUs of heat per hour to the 1250F rated at 1.25 million BTUs. The 750F model displayed at the oil show is rated for 750,000 BTUs and has an output air volume of up to 5,500 cubic feet per minute. A shortage of labour in the Bonnyville region makes the Mac flameless heater an ideal and safe heating solution for oil companies since no extra personnel are required to monitor its operation. “They are pretty straight forward. You don’t need a man watch or anything like that. It’s a turnkey operation. It’s very simple,� said Wandler. X Page A31

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W Page A30 “You can walk away. You just have to make sure they’ve got fuel in them. They’ve got 40plus hours of refuelling time.� Macs feature heavy duty steel construction, push button operation and long distance ducting up to 150 feet. The ducting is made of strong, lightweight carbon poly-based fabric and is constructed with a steel-wire helix and is designed to perform in high temperature heating applications. All Mac flameless heaters, including the 750F display model, are designed to provide clean, safe airflow at temperatures up to 82 C or 180 F. “The advantage of this unit is there is no burner in it so all the heat is created off the engine,� said Wandler. “The engine is loaded with an hydraulic pump which creates heat by the diesel fuel

that’s burned.� Other applications for the Mac flameless heaters range from pipelining and refineries to mining, new construction and heating tanks for service and maintenance. “This unit can be brought to an area and you can run over 100 feet of ducting, so you can run it to a confined space area,� said Wandler. “This is set up with a positive air automatic shutoff so if an LEL level (explosive limit) gets too high, it will shut off on its own.� If the unit runs out of fuel, it goes into a cool-down mode before the engine shuts off, thus prolonging the life of the equipment. Heater Sales & Service is the exclusive Western Canada and Northwest Territories distributor for Mac Inc. based in North Dakota and Flagro Industries in Ontario. The company is

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owned by Lee Gottschlich, who also owns Leading Manufacturing Group Inc., an oil tank fabrication shop in Vermilion. Heater Sales & Services also sells a lot of the portable Flagro indirect heaters equipped with their Riello burner technology for temperatures up to 82 C. “It’s a market that the rental companies in Western Canada really like,� said Wandler. Companies like Hertz Equipment Rental, the Cat Rental Store and Volvo Rents buy them for their rental fleets. “It’s a simple unit and it’s grief-free, as in no maintenance. It’s very rugged. You can send it out to the field and it comes back,� said Wandler.

“The units are going out to companies like Cenovus, CNRL and Nexen, and so forth.� The Flagro indirect heaters can run on oil, gas or propane, with the same type high perfor-

mance heat ducting as the flameless heaters. “They do the same thing, but there is a burner inside of them, so depending on the job site requirements, you need a man watch

for so many units,� said Wandler. “Indirect has been around for a long time and I can see it sticking it around for quite awhile because of its rugged nature.�

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Bonnyville – There wasn’t a drop of oil to be found on or near any of the progressing cavity pump driveheads on display at the Oil Lift Technology Inc. booth at Bonnyville & District Oil and Gas Show. The bright red driveheads manufactured by Oil Lift Technology are also designed to function cleanly at the well site with a patented zero-spill stuffing box that eliminates oil spill cleanup costs. The global company has sold thousands of driveheads with the environmentally-friendly stuffing boxes for heavy oil applications in the Bonnyville area in the past 10 years. X Page A33

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707,305, 5,>: (\N\Z[ W Page A32 “This is one of our core growth areas in Canada,� said Kurt Becker, regional manager in Bonnyville. “The driveheads handle heavy oil. They do very well in abrasion and high sand content. Our pressurized stuffing box is by far the best in the market. “So basically, we keep more oil in the well and less on the ground. We can use our driveheads on any PC pumpable well.� Oil Lift Technology is one of the world’s leading manufacturers of artificial lift systems for the oil and gas industry including wellhead drives, rod-locks, progressing cavity pumps and remote power units. Becker filled his booth with a G1500 and G2000 gear drive PC pump drive and the hydraulic version of the H1800 model that is also made with the zero spill stuffing box. “It’s good for about 2,000 ft-lbs of continuous torque and is rated at 500 rpm so you can put it through its paces,� said Becker. Oil Lift Technology makes a variety of gear, belt and hydraulic drives that are in demand in the heavy oil industry in Western Canada. “We have a tremendous amount of drives in the Lloydminster area with Husky and everybody else,� said Becker. “Basically, Lloydminster, Bonnyville and Peace River and becoming our core areas. Anywhere there is heavy oil, we’ve had a lot of success.� Oil Lift has over 10 field service facilities in Canada, the United States, Australia, Colombia and Oman with its Western Canadian headquarters in Calgary. The company was acquired by Dover Corporation in 2011 making it part of Norris Production Solutions, a group of operating companies that comprise Dover’s artificial lift business. Oil Lift Technology’s PC pump system design services are suited for heavy oil, light oil, gas de-watering and high temperature and abrasive fluids applications. The company is working flat out in the Bonnyville area these days to sell and service their driveheads for PC pumps and wellhead components. “The area is very busy. The labour pool is very shallow – any people are hard

to come by, but business has been very good in the area,� said Becker especially on the service side. “We’ve got four or five thousand of them in the area so it keeps us hopping. We do it with a fairly small staff,� he said. “We’ve only got seven guys between the shop and the field that manage that many pieces of equipment. It’s been good. “We repair them as much as we can onsite. If it needs an overhaul, we bring it back to our local shop. “We have guys on call 24/7. If they call at midnight, we have a guy who can go and fix it and keep it running.� Becker generated a lot more sales and service contacts about his company’s driveheads during this year’s oil and gas show held June 19 to 20 than he did at the first show in 2011. “It’s been good. Traffic is up from two years ago, so it’s very encouraging so far. It’s been really good,� he said at his booth. The downside of the Bonnyville boom he noted is the lack of local housing and a labour crunch. “There is nowhere to live, not many people to hire, and if you can find a place to live, it’s very expensive. It’s a very busy area right now,� he said. The region is about to get a lot busier with the projected startup of Imperial Oil’s Nayibe thermal project in 2014 that will expand production of Cold Lake operations by 40,000 barrels per day at full capacity. Cenovus Energy expects its expanding Foster Creek thermal project in the Cold Lake area may have the capacity to produce 295,000 bpd by 2018, and as much as 310,000 bpd by 2018 with optimization. Some of the other heavy oil and gas companies in the region such as Canadian Natural Resources, Devon, Husky Energy, Harvest Operations Corp. Enbridge, Shell and Osum Oil Sands are planning to increase their output.

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8QLYHUVDO VXUYH\V JURZWK LQ &ROG /DNH DUHD Bonnyville – Universal Geomatics Solutions set up a booth at the Bonnyville & District Oil and Gas Show in June to fly the flag of its new Cold Lake office

and promote its services to the regional oil and gas industry. The Edmontonbased company provides a full menu of survey, geomatics and project

management services to a variety of industries through its offices in Calgary and Grande Prairie and new branch locations in Terrace, B.C. and Cold Lake.

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“We do a large amount of work for the pipelines and residential construction doing land surveying,� said Katlyn Axani, who is a field representative in Cold Lake. “We are a land survey company first, along with project management and engineering.� The Cold Lake office was set up just two years ago and there is no shortage of work as the region is experiencing an economic boom. “Oil and gas has been a huge thing for us all over Alberta. We have several offices that are all involved in the oil and gas industry right now,� said Axani. “We find construction has been a huge thing in the Cold Lake area and we do have a couple of crews out

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doing the oil and gas sectors.� Universal does a lot of residential, commercial and industrial surveying projects in the region driven by growth in the oil and gas industry. “In this area, the industry is becoming a big bigger and bigger part of Cold Lake and Bonnyville,� said Axani. “With the expansion of a lot of projects happening, it seems to be an ongoing thing.� In Western Canada, Universal provides survey services for oilsands exploration and steam assisted gravity drainage projects along with oil and gas surveys, pipeline surveys, GIS and data governance. The company has done work on the North Central Corridor pipeline and the Keystone pipeline in Alberta. The oil show was the perfect venue to promote their business and leading edge equipment to the oil and gas industry in the Bonnyville and Cold Lake areas. “We’re just trying to get it out that we are in the area. We do have a presence,� said Axani who was at the company’s booth. “We have local crews and local people to do the work. We’re trying to promote the

kind of technology that we are using now in the field.� The company brought one of its Trimble robotic total stations to the show, along with a Leica P20 ultra highspeed scanner. “One thing we have gotten into now is robotics and using the robotic total station for construction sites versus a regular total station,� said Axani. The Trimble robotic total station offers construction-specific functionality and oneperson operation. It performs all job site layout and measurement tasks for maximum flexibility and cost savings. The Trimble S8 works with Trimble Survey Controller field software and Trimble 4D Control processing software for seamlessly connected solutions for engineering jobs. “Robotics – basically it reduces the need for a guy standing behind an instrument,� said Axani. “It’s a stand-alone unit so you can go out there and do your survey.� Universal has also uses the industry standard GPS RTK (real time kinetic) satellite navigation surveying tools. X Page A35

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<ĂƚůLJŶ džĂŶŝ͕ Ă ĮĞůĚ ƌĞƉƌĞƐĞŶƚĂƟǀĞ ǁŝƚŚ hŶŝǀĞƌƐĂů 'ĞŽŵĂƟĐƐ ^ŽůƵƟŽŶƐ ŝŶ ŽůĚ >ĂŬĞ͕ ůŽŽŬƐ ƚŚƌŽƵŐŚ ƚŚĞ ŽƉƟĐĂů ƐĐŽƉĞ ŽĨ ƚŚŝƐ dƌŝŵďůĞ ^ϴ ƌŽďŽƟĐ ƚŽƚĂů ƐƚĂƟŽŶ ƚŚĂƚ ŝƐ ƵƐĞĚ ĨŽƌ ƐƵƌǀĞLJŝŶŐ͘ WŚŽƚŽ ďLJ 'ĞŽī >ĞĞ

W Page A34 “We’ve also started a branch in the company that does 3D laser scanning,” said Axani. “We are trying to keep up in the industry. It is a growing industry. Obviously technology grows every year just like with everything else, so we are just trying to keep up with it.” The company scanned the inside of the oil show arena in just 20 seconds using the Leica P20 to render a 3D image of the building for booth visitors to view. The scanners are known for their fast scan speeds (up to one million points/second) and high level of detail and data quality at a range of more than 120 metres. “It allows us to do 'as builts' quicker. We can actually do the 3D dimensioning,” said Axani. “If we submit it to a client, they can actually inquire about a distance between two points and we don’t have to be there physically to do it. We already have the data for it.”

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

– 4 WEEKS

Established, profitable Sewer Vac Service with 2005 Freightliner truck in excellent condition. C7 CAT engine, 6 speed with air brakes, new 1600 gal. steel coated tank, pump, hoses and heated valves, high capacity pump added in 2011. Owner is retiring.

Call Dennis at 306-634-9305

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ville oil show in June in order to spread the word to oil companies in the area about their environmentally friendly polymer-based products. The polymer for controlling dust from oilfield traffic is touted as a greener alternative to the use of chlorides and can be used in place of water where chlorides would be harmful. “That’s why we actually are pushing it because it is environmentally friendly, so hopefully this will take off,� said owner Rob Hunter who took his sons Ryan and Dave to the oil show. “The more roads we have, the more dust that we have. It’s pretty hard on the cattle and for people. “We all know that we are in an oil area. We open our windows and by the end of the day, our cupboards and everything in our house is covered with dust. “Hopefully this will help a lot and be cost-efficient for the oil companies. We are try-

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Bonnyville – Cabert Enterprises Ltd., which is based in Bonnyville, is breaking out of their mould with new seasonal hydroseeding and polymer dust control services that are targeted at oil and gas companies. The family-owned business known for lease site preparation and clean-up and oilfield septic system installation work, aims to tap into a demand for green, cost-effective solution to erosion and dust control. The company set up a booth at the Bonny-

ing to sell it to whoever is interested in keeping the dust down.� The polymer is typically applied with water in a 9:1 or 4:1 ratio depending on the use of the road and how much traffic there is and whether it’s a commercial road or it’s just for local traffic. Cabert has been in business locally since the ’90s and has done a lot environmental work in the Devon area. They also reclaim lease sites and install septic systems and water cisterns for oil and gas producers in the region. In the winter, the company does commercial construction and maintenance at 4 Wing in Cold Lake. “I handle all the maintenance for the secure side of the base. We do overhead doors as well,� said Rob. “I have a crew of three guys that do all of the overhead doors on the air base. That keeps us constantly busy all winter. X Page A37

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707,305, 5,>: (\N\Z[ W Page A36 “The base starts to slow down in the spring. That’s when we can head off our hydroseeding and that during the summer times. “It works pretty good for the company and diversifies things.� Rob said the new environmental services are the brainchild of his son, Ryan, who is stoked on their business potential especially when it comes to polymer dust control. “We’re in talks with the MD right now to get some work done with them. We’re basically in talks with oil and gas right now. It’s something that’s new this year,� said Ryan. “This product was developed in the last two years and it’s sort of coming out of its experimental phase. That’s where we’re at with everything at the moment. “We’ve got quite a lot of interest in it. It’s new to the area, so we are looking at building on it.� The traditional dust control method is an application of water or water mixed with calcium chloride or magnesium chloride that is corrosive to equipment and vehicles. The polymer dust control is mixed in a hydroseeder and sprayed on the road surface with only one or two applications a year required depending on the road and its usage. “It will accumulate in the road so your application for subsequent use actually declines. You have to use less of it,� said Ryan. “When this stuff evaporates, it leaves kind of a tough gummy texture which keeps the fines intact.� The company plans to refine and experiment with the process this year and secure dust contracts starting next summer. Ryan also thinks hydroseeding is the most efficient and cost-effective way to quickly reclaim lease and construction sites as well as steep slopes susceptible to

wind or water erosion. “What it does, is you get 99-plus per cent erosion control and seed stabilization immediately whereas with traditional blankets, there is still a lot of running – the seeds get eroded away. This really eliminates that problem.� The secret sauce is a seed coated with polymer which that contains all the nutrients and fertilizer the seeds need for growth. “Native grasses and native seeds have a harder time growing especially when companies are doing lease site reclamation,� explained Rob. “They’ve disturbed the top soil so is hasn’t got any nutrients to grow. “They figure if they broadcast seed, it will grow, but that doesn’t necessarily help. With the polymer that we put on the grass seed, it doesn’t fall apart. It holds together. “The seed is in that polymer with the fertilizer and it stays in there even when we mix it up in the hydroseeder and spray it out. “Right away the seed doesn’t have to venture to look for its nutrients. It automatically can grow and it will stay in its right place.� The hydroseed material is mixed with mulch such as Flexterra for extreme slopes and ProMatrix for short steep slopes. The products act as a growth medium for the best germination and growth establishment. “When you spray it out and you got the seed in it, that forms to the shape of the ground stops erosion and turns into solid matting so it doesn’t fall apart,� said Rob. “It stops the dirt and everything from rushing down the hill and gets the grass to grown within it. “It’s excellent for steep slopes. You can seed up to an almost 90 degree bank with Flexterra and it will stick right to the bank. It’s probably 10 times better than any traditional matting out there.�

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8QLWHG :D\ HDUQV H ZDVWH GROODUV Lloydminster – The Lloydminster & District United Way has found a way to earn e-waste dollars to support its 16 local agencies while saving landfills from discarded electronics. The local United Way is a member of Greentec International’s Think Recycle program

which collects used cellphones, laptops and toner cartridges and recycles them in exchange for fundraising dollars. The program generates about $100 a month for the local United Way and a feel good response from participating individuals and companies.

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“It’s been very good. We have some of the local cellphone companies that sell phones collect them for us and we do a pickup,� said Sharon Swift, president of the Lloydminster chapter. “We have some oilfield companies that also do pickups and collect them. They are

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either ink cartridges or cellphones or whatever they may have. “If companies are big enough, we do a monthly pickup for them.� Think Recycle is responsible for diverting millions of cellphones and print cartridges from landfills and generates nearly $5 million

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in fundraising to its members. More than 10,000 North American schools and organizations participate in Think Recycle program that is operated by Greentec in Cambridge, Ont. The Lloydminster United Way has been a member of Think Recycle for over two years and provides an e-waste drop-off box outside its office at 4419 - 52 Avenue in the community services building. Each month, staff package the qualifying products and ship them by Purolator to Greentec where they are credited their the local UW account. “Some of the items

are worth more money than others and some aren’t worth anything, but it’s a way to keep it out of the landfill,� said Swift. “Some cellphones are worth 50 cents. Some can be as much as $50, depending on the cellphone. “It’s free money and it keeps things out of the landfill. Some of the stuff we can’t recycle with them, but we find other places to recycle.� Digital cameras and iPods are included on the list of qualifying products for Think Recycle rebates. Charges are levied however, for unacceptable items such as printer and fax machine ribbons and fluorescent lights. Think Recycle donates funds to have one tree planted through American Forests or Tree Canada for every 24 qualified products collected by the Lloydminster United Way. To date the program has funded the planting of 55,000 trees in North America, effectively removing 8,700 tons of carbon from the atmosphere. Swift noted that all of the money the organization raises from Think Recycle stays in the community to help fund programs and services.

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You see a game of soccer. We see your people living comfortably near your remote work site.

Modern workforce living starts here. At the end of the work day, our clients are looking for more than a place for their people to stay. They are looking for a place where people can live. We build and operate accommodations with the services and amenities that will attract people to their projects, providing an environment that

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ƵƌƟƐ EĞƌůŝĞŶ ŝƐ ƚŚĞ ďĂƐĞ ŵĂŶĂŐĞƌ ĨŽƌ dƌŝĐĂŶ tĞůů ^ĞƌǀŝĐĞ ŝŶ ƌĂŶĚŽŶ͕ DĂŶ͘ dŚĞ ĐŽŵƉĂŶLJ ǁŝůů ŵŽǀĞ ŝŶƚŽ ŝƚƐ ŶĞǁ ĨĂĐŝůŝƚLJ ŝŶ ƚŚĞ tŚĞĂƚ ŝƚLJ ŝŶ ƵŐƵƐƚ͘

7ULFDQ GRXEOHV GRZQ LQ 0DQLWRED 6XEVWDQWLDO QHZ IDFLOLW\ VKRZV WKH\ SODQ WR VWD\ Story and photos by Brian Zinchuk Brandon, Man. – They’ve only been there for a little over a year-and-a-half, and already Trican Well Service Ltd. is building a larger shop. The new Brandon facility is larger than Trican’s newest building added to its Estevan location. “This is 23,000 square feet,” said Curtis Nerlien, base manager for Brandon. That includes 5,600 square feet of office space. “They wouldn’t build it if they didn’t plan on sticking around,” he said of Trican’s intentions. The Brandon facility hosts cementing and fracturing crews. Coil tubing is “on the agenda,” he said. “It’s something we’re working on. I don’t have a time frame.”

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“We build for growth. We’ve got one frac crew set up for 24-hour-a-day operation. Trican is the only service company of its type with a facility in Manitoba. “We’re the only ones. I think it helps with employment, for sure,” said Nerlien. “They know, most of the time, it’s be in the area, within a two-hour drive.” There aren’t a lot of oil wells in the immediate vicinity around Brandon, but as far as finding someplace to live, perhaps that’s a good thing. The company’s strategy in setting up there, as opposed to somewhere like Melita, Virden, or even expanding Estevan, was that there would be someplace for their staff to live. The strategy has paid off. ɸ Page B2

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7ULFDQ VHW XS ZKHUH KRXVLQJ ZDV DYDLODEOH When Pipeline News visited in early July, much of the interior was having finishing work done. It’s a bit of a drive from the downtown, three miles in fact from the outskirts of the city, but it is still within city limits. In the shop one finds a 10-ton overhead crane. Instead of the in-floor pit common in most truck shops for getting under trucks, this facility has a rare, full-length jack system. The hoist is capable of 160,000 pounds. And in fitting with a company that likes to keep its

iron shiny, there’s a wash bay as well. The building Trican initially operated out of has been picked up, rotated, moved and added onto. It now has new cement storage silos adjacent to it. The building itself is now used for storing liquid frac supplies as well as cement storage. “We moved it, added on, and doubled it.� The silo farm was plumbed in in May, and became operational in June. It’s painted in the bronze-like company colour, known formally as “Trican fawn.�

dŚĞ ĹśÄžÇ Ć?Ĺ?ĹŻĹ˝ ĨÄ‚ĆŒĹľ ĹŠĆľĆ?Ćš Ä?ÄžÄ?ĂžĞ Ĺ˝Ć‰ÄžĆŒÄ‚Ć&#x;ŽŜÄ‚ĹŻ Ĺ?Ĺś :ƾŜĞ͘

Éş Page B1 “Probably 90 per cent of the people that work here are from the area,â€? Nerlien said. That’s in sharp contrast to other frac operations in nearby southeast Saskatchewan that fly in most of their staff on a rotational basis. “It’s tight, but it’s better,â€? he said of the availability of accommodations. “There’s a lot

WHERE ENERGY MEETS SAFETY

more availability to hire local guys.� “We’ve got 50 employees right now. I’m thinking we’ll be between 65 and 70 in the next four months.� Very rarely do they need to put up staff. “They’ve all been able to find a place within a month, anybody who transferred,� he said. The work is primarily in southwest

Manitoba. “We cover what Estevan can’t. We try to cover what’s in Manitoba,� Nerlien said. That includes Waskada, Cromer, and Virden areas. One area, near Elkhorn, has seen increasing attention in recent years. “We started construction in August 2012,� Nerlien said, adding they anticipated moving in this August.

tĹ˝ĆŒĹŹÄžĆŒĆ? Ɖƾƚ ÄŽĹśĹ?Ć?ĹšĹ?ĹśĹ? ĆšŽƾÄ?ŚĞĆ? ŽŜ ƚŚĞ ĆšĆŒĆľÄ?ĹŹ Ć‰Ä‚ĆŒĹŹĹ?ĹśĹ? Ä‚ĆŒÄžÄ‚Í˜

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$TXLVWRUH KLJKOLJKWHG DW JOREDO &&6 V\PSRVLXP LQ 5HJLQD tions side, the sparsely Worth noted. days. populated immediate Four pressure and The risk assessment vicinity of the project temperature gauges are was done in the fall of meant only 10 to 12 used in the observa2011. There were 280 people were impacted. tion well. Of the two identified risks, and all fibre-optic lines running They were reached via were addressed, Worth table-top discussions. to the bottom, one is said. One person was reluca digital temperature Legacy data from tant at first, because a system. There is also a the Weyburn field seismic crew worker digital acoustic system helped, Worth said. at one point, prior to to be utilized instead “Only very few wells go Aquistore, had left a of a geophone string to the depth of Aquisgate open and a calf tore,â€? he stated, pointing for future seismic work. was killed. As a result, out a few wells and cores That portion is experiAquistore personnel mental, he said. were done 70 miles identified one person on The project’s meaaway. the crew to ensure all suring and verification Three cores were gates were kept closed. take in the first well, and program started with a Drilling rigs are baseline survey. Many 22 side-wall cores were not usually the subject sensors were co-located taken of the reservoir. of tour groups, but the together. A permanent There was a very comtriple Nabors Drilling prehensive logging suite. seismic array of 630 Ć‹ĆľĹ?Ć?ĆšĹ˝ĆŒÄž Ć‰ĆŒŽŊÄžÄ?Ćš žĂŜĂĹ?ÄžĆŒ <LJůĞ tĹ˝ĆŒĆšĹš Ć?ƉŽŏÄž ŽĨ ƚŚĞĹ?ĆŒ Ć‰ĆŒĹ˝Ĺ?ĆŒÄžĆ?Ć? ÄšĆľĆŒĹ?ĹśĹ? ƚŚĞ ĂŜĂĚĹ?Ä‚Ĺś ĂŜĚ rig saw 240 visitors. geophones, buried 20 The injection well 'ĹŻĹ˝Ä?Ä‚ĹŻ ^ ĞǀĞůŽƉžĞŜƚĆ? ^LJžƉŽĆ?Ĺ?ƾž ŽŜ DĂLJ Ď­ĎŹ Ĺ?Ĺś ZÄžĹ?Ĺ?ĹśÄ‚Í˜ WŚŽƚŽ Ä?LJ ĆŒĹ?Ä‚Ĺś Ĺ?ĹśÄ?Ĺšƾŏ While the workers were metres deep, covers has 7-5/8 inch casing “somewhat surprised,â€? 12 square kilometres. and 4-1/2 inch tubWorth said, “They were Battery maintenance Regina – One of the deepest portions of rights owners within 1.5 ing, with CO2 resistant kind of proud to be part is done once a month, cement. Pressure and Saskatchewan’s premier Saskatchewan’s sedimiles of the project. A of the project.â€? and data is transmitted temperature gauges are carbon capture and stor- mentary basin. handful of people were Aquistore is exwirelessly. strapped outside the age projects was showSchlumberger difficult to get a repected to be tied into Having a permanent casing. There are three cased during the Canaplayed a large role in the sponse from. The reason the CO2 pipeline this joints of chromium cas- array dramatically redian and Global CCS project, Worth noted. was they didn’t want to duces the cost of future fall. Construction was Developments SymThere have been nupay the legal firm money ing across the packers, seismic surveys, with from the packers to initiated in July. The posium on May 10 in merous international to deal with the consent. Nickel saying, “We did depth. line will link BoundRegina. The Petroleum collaborators. Once the PTRC came a repeat survey just last The reservoir was ary Dam Power Plant Technology Research The PTRC is forward with money to Saturday, at 100 times one-third thicker than with Aquistore and the Centre’s Aquistore looking at geothermal pay for the legal conless cost.â€? what they expected. Cenovus Weyburn Unit. project was described by potential with another sultations, that step was On the communica“That was good for us,â€? project manager Kyle partner, he added. wrapped up in a few Worth. “2012 was a very Aquistore is meant busy year,â€? he said, with %UDQFKHV LQ (VWHYDQ &DUQGXII to take compressed contracts and permits DQG %UDQGRQ $UHDV carbon dioxide capcoming into place in tured at the Boundary January of that year. Dam Power Station A baseline 3D seismic and inject it into deep survey was shot early saline aquifers in a well in the year. In April, an just 2.5 kilometres west open house was held in of the power plant. The Estevan. Drilling began (/(&75,&$/ &216758&7,21 0$,17(1$1&( 6(59,&( injection well, and its on the first well, the (QIRUP &25 &HUWLĂ€ HG adjacent observation injection well, in July, 3/&Ň‹6 9)'Ň‹6 3/&Ň‹6 9)'Ň‹6 well, are the two deepand the second well, the +285 6(59,&( +285 6(59,&( %$77(5< &216758&7,21 est wells in the province, observation well, was %$77(5< &216758&7,21 '(921,$1 67 (67(9$1 6. '(921,$1 67 (67(9$1 6. going right down to the completed in December. *(16(7 5(17$/6 3+ )$; *(16(7 5(17$/6 3+ )$; Precambrian “basementâ€? They received /2&$//< 2:1(' 23(5$7(' 75(1&+,1* 75(1&+,1* /2&$//< 2:1(' 23(5$7(' at the bottom of one of consent from all mineral 02725 6$/(6 5(3$,56 ZZZ SRZHUWHFK LQGXVWULHV FRP 02725 6$/(6 5(3$,56

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0XUUD\ (GZDUGV LQGXFWHG LQWR +DOO RI )DPH Weyburn – When one man’s contributions to business are so significant that the provincial university renames its College of Commerce after him, while he’s still alive no less, that person is a shoe-in to be nominated for the hall of fame of their industry. Murray Edwards, co-founder of First Energy Capital, was inducted into the Saskatchewan Petroleum Industry Hall of Fame during the Saskatchewan Oil and Gas Show in Weyburn on June 5. First Energy Capital is listed as a financial backer in a very high number of corporate deals in the oilpatch. It is a key player in the industry. The University of Saskatchewan website notes, “On July 24, 2007, the University of Saskatchewan very proudly acknowledged Mr. Edwards’ continued relationship with the business school by transforming the College of Commerce to the N. Murray Edwards School of Business. Mr. Edwards’ investment in the business school allows us to gain recognition with our new brand and helps to position the school as one of the top five business schools in Canada. Not only has Mr. Edwards invested in our financial future, but he has also invested his time and knowledge by serving on the Edwards School of Business Dean’s Advisory Council.� Murray Propp, co-chair of the board of governors for the Hall of Fame, read the following citation: “N. Murray Edwards was born in 1959 and raised in Regina, Saskatchewan, where he completed his primary and high school education. He graduated in 1981 from the University of Saskatchewan, where he earned a bachelor of commerce with great distinction, and was awarded at his convocation the President’s Medal as most distinguished graduate receiving a first degree and also the Xerox Canada prize as most distinguished graduate from the College

of Commerce. He then entered the Faculty of Law at the University of Toronto and graduated in 1983 with a bachelor of laws with honours. In 1983, he was drawn to Calgary by its dynamism and entrepreneurial spirit and chose to practise corporate law with Burnet, Duckworth & Palmer, a Calgary-based law firm. Within four years he was a partner, but decided to take a risk and leave at the age of 28 to pursue his true interest: business. ɸ Page B5

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707,305, 5,>: (\N\Z[ Éş Page B4 “Mr. Edwards is one of the most successful entrepreneurs in Canadian history, with a wide range of business interests including oil and natural gas, energy services, mining, aerospace, ski resorts, and NHL hockey, as chairman and one of the co-owners of the National Hockey League’s Calgary Flames. He has built and revitalized enterprises that today support over 25,000 direct employees and tens of thousands of indirect employees, and have contributed

(GZDUGV UHVSRQGV RQ EHKDOI RI LQGXFWHHV Murray Edwards responded on behalf of Saskatchewan Petroleum Industry Hall of Fame inductees Marvin Romanow, Stewart Hanlon, Hank Swartout and himself during the induction ceremony, stating, “I would like to thank the Weyburn community and Saskatchewan Oil and Gas Show for putting on this event, and the board of governors of the Saskatchewan Petroleum Industry Hall of Fame. With people like you, it makes Saskatchewan a good place to come from. “The secret to that work I know all the honourees that I worked with over the years ‌ are very honoured to be brought back to Saskatchewan to receive this award. It brings us back to our roots. One thing I know is that when we graduated from university, the opportunities all lied to the west. You went to the west because that was where opportunity lied. Today, what’s happening in the communities of Saskatchewan, we want to build an opportunity to invest and to grow, and stay in Saskatchewan. “I can tell you of the guys from Saskatchewan, the skills we developed in Saskatchewan, our value of critical thinking, our value of hard work, integrity, comes from Saskatchewan. Without the value of hard work, the integrity, we would not have had success. That’s what Saskatchewan gave to me. We’d like to thank you for it.â€?

hundreds of millions of dollars in taxes, royalties and community investments throughout Canada. In addition Murray has been a leader in embracing and implementing corporate social responsibility within his business enterprises and has a strong record of community service. “Murray is known for initially taking large equity positions in his companies and foregoing cash compensation for his various board roles. He then works to boost share prices – a trait that has endeared him to legions of shareholders. “His commitment to public policy development includes membership, current or past, on the board of directors of the Canada West Foundation, the CD Howe Institute, the Banff Centre and the Canadian Council of Chief Executives. “He is quietly one of the leading philanthropists in Calgary, with support ranging from literacy efforts, the Calgary Children’s Initiative, the Calgary United Way, and the Haskayne School of Business. His generosity of spirit, described as being of the “practical kind� has benefited society through numerous contributions to Canadian education, health, social, artistic, and cultural issues. “In 2007 Mr. Edwards was named one of the University of Saskatchewan’s 100 Alumni of Influence, and in 1999 was named one of Time magazine’s Canada’s Leaders for the 21st century. Mr. Edwards holds honorary doctors of laws from the University of Calgary and the University of Saskatchewan. “Edwards has a keen interest in the political and economic development of the country and the province in which he resides. He enjoys skiing, golfing, travelling, playing with his dog, scuba diving and reading about current world events. He is married to Heather Bala Edwards and they have a son, Adam and a wonderful Wheaton Terrier called Poppy.�

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0DQLSXODWLQJ 6DVN LQ ' „ By Brian Zinchuk Regina – As senior geologist Arden Marsh points out different areas of Saskatchewan, there’s a weird effect going on – his head is being bisected by the potash ore body that runs throughout southern Saskatchewan. As geological information systems technician Tyler Music manipulates the image, at various times it appears as though the geologist is right in the middle of a hologram. It’s the stuff of movies, or Star Trek. Welcome to the Saskatchewan Geological Survey 3D Modelling Centre. Set up in the fall of 2012, the modelling centre projection room was added as part of the renovation and expansion of the Saskatchewan Subsurface Geological Laboratory, commonly called the “Core Lab.â€? The Core Lab is a priceless treasure; the physical archive of all the province’s extracted core and drill cuttings, in addition to physical paper logs. Long before the term “data miningâ€? became commonplace, this facility, and others like it, took the term to a literal definition. The data that can be extracted from the core provides geologists with insights as to where their companies should go next, or what they should do with the properties they have. Data mining, in this case, truly can lead to new mines, or wells. It is with information from this collection that the 3D model draws its data points from. It includes information from approximately 1,500 wells that penetrate the prairie evaporite. That information comes from well logs and some core. “It helps us help lay people understand what’s under the surface,â€? said Erik Nickel, also a senior geologist with the Core Lab. They’ve had Minister Responsible for Energy and Resources Tim McMillan there, as well as a lot of potential Korean and Chinese investors. It was also open during the recent Williston Basin Petroleum Conference. The room itself is large, and dark. There’s a large projector screen, with a very large projector behind it. Several rows of chairs are in front of the screen, and in the centre of the room, at the back, the technician sits at a computer, running the system. The key thing is the 3D glasses. These aren’t the disposable/recycleable ones you see at the movie theatre, but rather the battery-powered active shutter kind. There are 20 sets of glasses. ɸ Page B7

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subtract the water, you find out how much oil is potentially available to extract. The provincial geological survey is working with the National Research Council and National Energy Board to do a resource assessment for a realization of oil in place for the Bakken formation in eastern Saskatchewan. The Unites States Geological Survey did similar work in their Bakken formation. “We’re in charge of providing accurate property data – properties of oil saturation, porosity, permeability and density,� Nickle said. “How much of it is filled with water, and how much with oil?� There are a lot of complex calculations involved, he noted. “There’s different ways of calculating this, but the methodology should be the same.� In a similar manner, the Athabaska model is well-developed for the north. Nickel personally worked on the Weyburn model five years ago, where the world-leading carbon storage and enhanced oil recovery project is underway. Work is also being done on Saskatchewan’s diamond deposits at Fort a la Corne. Geologist Dan Kohlruss is working on the oilsands area of Saskatchewan. Eventually, more and more of the data the lab has will be transferred into 3D space, in chunks of 20 to 50 townships at a time. They will likely be looking at highlighting new plays. “Oil companies have this, often on a reservoir scale,� Nickel said. “They take it to simulation waterflood and enhanced oil recovery schemes. We hope to do that on a regional scale.� The other difference is the oil companies keep such valuable data close to their figurative vests, whereas the provincial lab’s data is made available to everyone. Seismic information could be loaded into the model, but that’s one form of data the lab does not have. There is no requirement for it to be provided to the government, and seismic data is very expensive to get.

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Éş Page B6 When the prairie evaporite is projected with a 100 times vertical exaggeration, the reason behind the placement of Saskatchewan’s potash mines becomes clear. They are clustered along a strike line running roughly along Highway 16. It’s a shallow area, easier to get to. Where the ore body is deeper, solution mining is used. In the Rocanville mine, it’s approximately 1,500 metres to the base of the production elevator. Right now, only the potash formations are modelled. Oil bearing formations are on the agenda, in a regional manner. “Those, we’re working on,â€? said Marsh. “There is a project right now in the Saskatchewan Phanerozoic.â€? The Phanerozoic  is the current geologic eon in the geologic timescale, and the one during which abundant animal life has existed. “We have the regional stratigraphic framework for the entire Phanerozoic Basin that covers the southern two-thirds of the province,â€? Marsh said. “We have those in 2D right now. The plan it to output it in 3D. “We can get volumes of specific rock units,â€? Nickel said. This is used in resource assessment. Looking at porosity on a regional scale, in a depth and aerial extent, allows one to calculate how much fluid is in the rock. When you

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0HOIRUW SURGXFW IRXQGHG 3UHFLVLRQ 'ULOOLQJ Weyburn – Former Precision Drilling CEO and president Hank Swartout was one of four people inducted into the Saskatchewan Petroleum Industry Hall of Fame on June 5. The induction ceremony took place during the Saskatchewan Oil and Gas Show in Weyburn. Bonnie DuPont read his citation: “Hank was born &ŽƾŜÄšÄžĆŒ ŽĨ WĆŒÄžÄ?Ĺ?Ć?Ĺ?ŽŜ ĆŒĹ?ĹŻĹŻĹ?ĹśĹ? ,Ä‚Ŝŏ ^Ç Ä‚ĆŒĆšŽƾĆš Ç Ä‚Ć? Ĺ?ŜĚƾÄ?ƚĞĚ Ĺ?ŜƚŽ ƚŚĞ ^Ä‚Ć?ĹŹÄ‚ĆšÄ?ĹšÄžÇ Ä‚Ĺś KĹ?ĹŻ in 1951 and raised in ĂŜĚ 'Ä‚Ć? ,Ä‚ĹŻĹŻ ŽĨ &Ä‚ĹľÄžÍ˜ Melfort, Saskatchewan. After graduating high school from St. Peter’s College in Muenster, Saskatchewan, Hank moved to Calgary in 1971. The following year he completed the Petroleum program at Calgary’s Southern Alberta Institute of Technology. He then attended the University of Wyoming and graduated with honours in petroleum engineering in 1977. “Hank returned to Calgary in 1978 and joined Nabors Drilling to build rigs for use in Alberta and Alaska. He Call 1-306-596-4003 then moved to Edmonwww.jaywest.ca ton in 1981 to manage the rig design and

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construction business of Dreco Energy Services Ltd., delivering drilling rigs to clients for use in 48 southern states, Canada, Alaska, and overseas. “In 1985, Hank went into business for himself in Calgary and purchased an interest in Cypress Drilling which only had three drilling rigs and 20 employees. In 1987 Cypress acquired the drilling assets of Precision Drilling Ltd. As the executive chairman and founder of Precision Drilling (1987) Ltd., Hank was able to direct and lead Precision Drilling into becoming one of the largest oilfield service companies in the world with over 15,000 employees and working in 34 countries. Hank retired from Precision Drilling in August of 2007 and he continues to be active in small private oil and gas companies. Hank continues to be a leader and mentor in the oil and gas industry. “But Hank’s contributions go far beyond his acumen in business and in our industry. Hank is also known for his philanthropy and his desire to give back to the community. In 2006 he co-chaired the Calgary and District United Way Campaign and he and his family continue to support the United Way as major annual donors. Hank gives generously to the MS Society, as they seek to find the cause as well as a cure for this disease.

The Swartouts have given to the Sheldon Kennedy Centre, again in an effort to assure that our consciousness around sexual abuse is raised and this problem is eliminated. St Peter’s College, Hank’s high school alma mater, has been supported by the Swartouts, as has the University of Wyoming, so giving back is part of the Hank Swartout story and a very important part of his life. “In preparing for today, I called upon some former colleagues for a little more insight into Hank’s personality. His friend Steve said, and I quote, “Hank is the poster child for being a straight shooter. He calls ’em as he sees ’em as they say in baseball.� “He is extremely loyal and sticks by people no matter what. If you are Hank’s friend, he will always be there for you. And he is a very giving person – to the community and to the business world. Hank is a good leader, a very successful entrepreneur, a good family man and a good friend. “Another friend talked about Hank’s love of sports, particularly shooting birds and golf. (I’m) not sure what kind of a shot he has in either case, but according to his pal, he loves both activities. “Hank lives in Calgary, Alberta Canada with his wife, Carol, and together they have four children and six grandchildren.�

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(YHU\RQH DQG HYHU\ EXVLQHVV SURGXFHV ZDVWH $QG VRPHRQH KDV WR FROOHFW LW Estevan – Their first customer was Flint Energy. Now, nearly 30 years of continuous growth later, Regens Disposal Ltd. of Estevan services commercial and municipal waste disposal clients from Radville to Redvers and south to the US border. The company is family-owned, with multiple shareholders in the Baniulis family. It is headed by Gene Baniulis, the principal shareholder. His wife, Margaret, was involved in the office for many years and is now retired. Logan Baniulis, their son, heads up sales. He spoke to Pipeline News on June 28. Regens was incorporated in 1985, he said, and had operated under a different name

for a few years prior to that. The name itself is an amalgam of the three initial partners’ names, but one partner dropped out around the time of incorporation, and the second was later bought out. Logan said, “I started when I was 14, working summers. In 2003, I started fulltime.� He studied business at Medicine Hat College, but soon found himself back in the family business. However, he spent a year working at a garbage truck manufacturing firm in Medicine Hat before returning to Estevan, invaluable experience for future work. Most people think of their weekly pickup

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ɺ Page B9 Every business produces waste in some form or another, and the oilpatch is no exception. With the focus in recent years on environmental protection, making sure that all sites, be it drilling or batteries, are kept clean is of upmost importance. All these operations – from static facilities like gas plants, to moving projects like pipelines and drilling – need waste collection on a regular basis. “We started doing commercial work in the early days of the company,” Logan said. “We got our first municipal contract in 2001. Carnduff and Carievale were the first communities to have rolling carts pickup for individual homes. In recent years, most waste contractors in the province have moved away from having people lift up garbage cans and tip them into the back of the truck. Regens is no exception. Hydraulics are infinitely stronger than men, and they don’t wear out their backs in the process. Now Regens’ municipal work runs from Wawota in the north, to Carievale and Redvers to the east, and Radville to the west. “We have a shop in Weyburn, with mechanics and trucks,” Logan said. “We’re proud to be a part of the Weyburn community, this is the second year we’ve rented the Leisure Centre every Friday afternoon throughout the summer months for Weyburn youth.” New home Estevan is the centre of operations, where the company has its headquarters. In July they were in the process of moving from their very cramped quarters on Souris Avenue to their new home, a five-acre parcel in the city’s Glenn Peterson Industrial park. It was important to set up in the city proper, according to Logan, as opposed to the surrounding rural municipality. Not only is the city a major customer, the site has full sewer and water connections. It also has a paved road. “We think this is a real statement

to the city of Estevan. It’s a $4 million facility,” Logan said. The new facility has four buildings. The main building has two floors of offices, a 100 ft pit for mechanics, and also a four-bay wash bay. There are two other shop buildings for container reconditioning and truck storage. One of these buildings has an oil filter recycling facility, with two machines designed to crush engine oil filters. Regens provides waste oil recycling services throughout the region. It’s an important part of the business, as it’s a nice revenue stream. They also use its product is used to heat various buildings throughout their operation. The new facility has two boilers that burn waste oil to produce heat, heating the other three buildings via underground pipes. Those buildings have in-floor heating systems. About 90 per cent of the waste oil they collect is sold, with the product eventually being burned in pulp mills. The remainder is used for their own heating purposes in their plant which meets environmental codes. The system allows Regens to dramatically cut down on the heating portion of its facilities’ operating costs. In Estevan Regens provides waste collection and recycling. They also provide recycling collection for the city of Weyburn. They provide commercial services for both centres. This fall the company is launching a new single-stream residential recycling program in Estevan and some smaller communities. Paper, tin cans, plastics, glass and cardboard will all go into blue rollout bins similar to the normal garbage bins households already have. This mixed stream of recyclables will then be baled in their Bienfait facility and shipped to larger plants for automated processing, separating the recyclables using items like large magnets. It’s an exercise in economies of scale, as small scale recycling operations throughout the province have often struggled. One of the larger processing centres is located in Saskatoon. ɸ Page B11

707,305, 5,>: (\N\Z[ Éş Page B10 “Everyone will get a second cart. We see it as a real positive for the city (of Estevan),â€? he said. Estevan’s recycling program will start in two phases, on Sept. 1 and Oct. 1. Radville, Filmore and Stoughton will being on Aug. 1. Pickup will be every second week. Logan said it is safe to say there will be a 50 per cent reduction by weight of waste going to the landfill as a result of the program. They also provide containers for fibre recycling (paper and cardboard) to commercial clients. “We started getting calls from the oilfield. It kind of surprised us,â€? he said. An example of that is parts departments within gas plants. The recycling facility in Bienfait is part of a larger facility that is key to Regens’ operation. It was there, using the contours of a former coal mine, that the company constructed its own landfill in conjunction with the Town of Bienfait. The Coal Creek Landfill was built by Gene in 2000. “It’s funded by its customers,â€? Logan said. The reason it is a linchpin to the company’s success is that it provides their customers with a option. Many municipal landfills will not accept waste originating outside of their jurisdictions. “Probably 80 to 90 per cent of our material goes to Bienfait.â€? The landfill was built to the required environmental specifications, with compacted blue clay, bentonite, sand and poly layers. There is a leachate

collection and pump system. Two cells have already been built, and a third is currently under construction. “It was a million dollar hole in the ground in 2000. If it wasn’t for that landfill, we wouldn’t be serving anywhere but Weyburn and Estevan,� he said. “What we do in southeast Saskatchewan, and the distance we travel is not common for hauling companies throughout Canada.� With such a large catchment area being hauled principally to one site, that means a lot of kilometres are put on their trucks each day. “Kilometres are our customers’ biggest cost,� according to Logan. Oilfield “A lof of the work we do stems indirectly from the oilpatch,� Logan said. “The oilfield is a huge driving force for southeast Saskatchewan. Thirty to 40 per cent of the commercial work is directly oilfield.� “We provide regular services to batteries and leases. We provide rolloff containers to site construction, gas plants and pipeline construction. “We’ve recently started, reluctantly, hauling scrap steel. It’s a whole different industry. “We’ve hauled scrap for many years in the Weyburn area, to Mryglod’s and South Side, and still do. It got to the point where anyone east of Estevan had nowhere to haul to, but were willing to pay us for the trucking. We’ve recently started a company – Regens Metals and Alloys, that’s in its infancy.� Scrap steel is often collected in very large, very heavy, heavy duty v-shaped bins called lugger bins. They require

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a specialized truck with a lifting A-arm similar to a gin-pole truck, but with a chassis similar to a cement truck. However, because the company already has a very substantial investment in hundreds of roll-off bins, they will use those bins for scrap steel for the foreseeable future. There is an area at the Coal Creek Landfill that is now used for scrap steel. Those roll-off bins see usage in commercial context, varying in sizes from 15 to 30 cubic yards. The company has a fleet of nine roll-off trucks, nine front-load dumpster-style trucks, and five side-load trucks for roll-out plastic carts used in municipal collection.

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*LEVRQ (QHUJ\ &(2 6WHZDUW +DQORQ KRQRXUHG Weyburn – Gibson Energy CEO Stewart Hanlon was one of four people inducted into the Saskatchewan Petroleum Industry Hall of Fame on June 5. The induction was part of the Saskatchewan Oil and Gas Show in Weyburn. Bonnie DuPont read the following citation: “Stewart Hanlon was born on April 18, 1960 in Swift Current, Saskatchewan. He attended high school in Swift Current at the Comprehensive High School and went on to earn his bachelor of commerce (finance and accounting) from the University of Saskatchewan in 1984, the same university and program that his father had completed some years before. Stew was admitted to Saskatchewan Institute of Chartered Accountants in 1989 and ICAA (Alberta) in 1990. “Stew articled with Clarkson Gordon (now Ernst & Young) in Saskatoon and worked with E&Y on the management consulting side in Calgary prior to joining Gibsons Energy in 1991.

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“To the casual observer, it may appear as though Stew was led down the same academic and career path as his father, Ted Hanlon, who is also a Saskatchewan Oil Patch Hall of Famer. Although the oil services business was in his family, the path Stew took was not by design. Stew had his sights set on becoming a rock star and was originally enrolled in music at the University of Saskatchewan. But fate intervened and here he is, the CEO of Gibson Energy. Stew Hanlon is a success story who has worked to drive another success story. “Gibson Energy started midstream services 60 years ago in 1953; the company built terminals at Hardisty and Edmonton in 1957 and 1961, respectively. The truck transportation fleet was started with two crude oil trailers in 1965; the company now has over 1,900 units hauling more than a quarter of a million barrels per day of energy products. Gibson built a fractionation plant in Hardisty in 1962, and receives trucked NGL from small gas plants to provide retail propane, butane and diluent to local markets. “Acquisitions have helped grow the company and in 1990, Canwest Propane was acquired to provide synergies for transportation and retail distribution. The Moose Jaw refinery was acquired in 2002. This Gibson affiliate is a leading provider of road asphalt, wellsite fluids and roofing flux for the entire North American market. “Stew has been CEO of Gibson Energy since 2009.  He became CEO when Gibson was sold (after being a private sub of Hunting PLC for 55 years) to Riverstone LLC, a private equity firm based in New York City. During the two years that Riverstone owned Gibsons and under Stew’s leadership, the enterprise value of the company grew, setting Gibson up for a successful IPO in June of 2011. The stock price on the IPO was $16. In the ensuing two year period, the company has grown rapidly and today trades near $27 with an enterprise value just shy of $4 Billion. A true success story and another story that involves one of our own at the helm of a thriving company. ɸ Page B13

&HQRYXV ODQGV DZDUG ZLWK FKRSSHU ULJ Calgary – Cenovus Energy is literally flying high as the winner of the Environmental Performance award at the 2013 Responsible Canadian Energy Performance (RCE) Awards. The RCE Awards recognize members of the Canadian Association of Petroleum Producers for achievements demonstrating environmental, social, health and safety leadership. Cenovus got the environmental nod for its innovative SkyStrat drilling program that uses a helicopter to deploy a new lightweight rig to drill stratigraphic

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(test) wells in remote oilsands locations. “The driving force behind it is to leave the land to what is was before we showed up there and for generations to come,� said Dustin Jack. The new rig is approximately two-thirds the size of a conventional rig and can be flown by helicopter to access remote drilling locations without building access roads. Cenovus plans to drill approximately 25 stratigraphic wells with the SkyStrat drilling rig in 2013 and is beginning construction of a second rig. “It’s part of our culture to always look at different and better ways to execute our projects in a more responsible manner,� said SkyStrat drilling program spokesperson Alan Krawchuck. “It’s centred around

a heli portable drilling rig and its application in a remote field location. The SkyStrat drilling rig drilled 18 wells in the oilsands up to the awards show held in Calgary in March. “The technology allows us to access our resource base in a strategic manner and uncover where our resource base is before we put in roads or other environmental impacts,� added Krawchuck. Transporting the SkyStrat drilling rig by helicopter significantly reduces the surface footprint. It also has the potential to reduce water use for drilling operations by up to 50 per cent. Further reductions in water use are achieved by not having to use additional water to freezein winter roads.

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Éş Page B12 “Stew is delighted to see Saskatchewan boom. With Gibson’s investment in the Moose Jaw refinery, they were able to turn it from a seasonal operation into a year round operation. Gibson bought trucking companies in southeast Saskatchewan and propane companies near Shaunavon and provides services required in this thriving economy. “Under Stew’s leadership, Gibson has strengthened its culture of inclusion, bringing together people of diverse backgrounds, cultures, perspectives and expertise. Gibson is committed to creating a supportive atmosphere where everyone plays and equally important role in the operations. Employee advancement within the organization is encouraged and employees are encouraged to enhance their skills and grow their careers within Gibson. Work life balance is encouraged and employees are encouraged to volunteer in their communities. Gibson is a people-centered company that works to help customers obtain long term value. Marketing, transportation, terminalizing, pipelining, processing, and environmental services are all part of the Gibson offering. “The Gibson motto is INTERACT‌I stands for integrity, N for innovation (OK, so Stew went to school in Swift Current), T is for teamwork, E for excellence, R for respect, A for accountability, C for compassion and T for

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transparency. And INTERACT is what Gibsons does – with their customers, with their suppliers, with their staff and with their communities. “But Stew isn’t ALL about business – he is also about family and about community, and that has been the history of the Hanlon family. I am from Swift Current too, and when you move around the community, you cannot help but see how strongly the Hanlon family has supported that community. The Hanlon wing of the new hospital is a testament to the philanthropic mindset of this family. And of course, beyond Swift Current, the family has also contributed significantly to the Edwards School of Business at the University of Saskatchewan, named after our first honouree here today of course. “Stew is married to Dianne, a good Saskatchewan girl, and they have three children. I had hoped that Dianne would be here today so we could introduce her but she was unable to attend. Stew brought his father though and so we have two generations of fabulous Saskatchewan leaders from the same family here at our celebration‌ both Ted and Stew. “So Stew, you left music and followed your Dad’s path into business, but you still turned into a Rock Star. Congratulations on your tremendous leadership and congratulations on your nomination to the Saskatchewan Oil Patch Hall of Fame. Two Hanlons from Swift Current ‌ Makes me proud to be a Swifty.

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)UHKOLFNV KRQRXUHG GXULQJ (%(; $ZDUGV Estevan – There are few people who have been stronger community builders than Ray and Doris Frehlick. Ray Frehlick founded Prairie Mud and Prairie Petro-Chem. The couple was honoured on June 14 during the bi-annual Estevan Business Excellence Awards, put on by the Estevan Chamber of Commerce. Michel Cyrenne, executive director of the Estevan Chamber of Commerce, read the following citation in inducting them into to Estevan’s Nick and Verna Morsky Business Hall of Fame: “Ray Frehlick was born and raised on a farm near Wilkie, Saskatchewan. He had received a scholarship to study agriculture and afterward returned to the farm. While working on the farm, there had been some drilling taking place on his father’s property so Ray also started blowing snow and clearing roads as his entry in to the oilfield. “By 1955 Ray was drilling for potash in the Wilkie area when he was asked to come to Estevan to work as a roughneck when the local oilpatch was just getting started. He moved in to the Gainsborough area looking for oil and started hitting paydirt around Frobisher and Lampman. Ray moved up the ranks quickly and was soon working as a driller and relief rig manager for Hunter Drilling. It was at this time, in Lampman, when he met Doris, his wife to be. “In 1958, Ray’s good friend Morley Wilson was working in the mudding industry and recruited him to be a drilling fluids technician; and since there was very little in Canada for oilfield training, he went to Houston to take the needed courses. Moving to Estevan that year, Mr. Frehlick continued on in this role from 1958 to 1976 with Ace Mud, while also serving as area manager. During some of this time in the 1960’s southeast oilfield, Ray remembers seeing upwards of 250 drilling rigs in southeast Saskatchewan – saying you could count upwards of 60-65 derricks around the Lampman, Steelman, Kingsford,

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and Frobisher areas. “While still working for Ace Mud, in 1969 Ray, and another of the minority stakeholders from the company, noted a growing demand for oil treating compounds and got in to the chemical business, starting Prairie Petro Chem. Ray and Doris owned and operated this business with up to 120 employees; Doris served as the company’s bookkeeper prior becoming the company president from 2006 until its sale to Clariant in 2011. “In 1976, after nearly 20 years with Ace Mud, Ray parted ways with the company in order to venture into his own mudding business - Prairie Mud; he and Doris continue to operate Prairie Mud with 56 full-time employees and offices in Swift Current, Kindersley, Lloydminster, and Lacombe along with warehousing in Brooks. “Through the late 1960s and early 1970s Doris also operated Courtesy Cleaners, providing dry cleaning with full pick-up and delivery service. As the family’s children were heavily involved in baseball and hockey, she also spent a great deal of time managing the family’s schedule, while keeping the books for the family’s growing farm operations. The Frehlicks continue farming to this day, with 180 head of purebred Simmental cattle and 2000 acres of agricultural land. They also operate Frehlick Quarter Horses, a training and breeding facility focused on producing and marketing quality, good minded horses that can go out and compete in any discipline or level of competition. â€œThe Frehlicks have employed a philosophy of growing their business in a manageable manner, so as to be able to finance expansions on their own. He explains business as being similar to a child’s development, in that an infant needs to learn to crawl before it can try to walk and needs to learn to walk before it can try to run. A business, like a child cannot try to skip any of the important learning stages, because especially in a resource based business, things can change quickly and if you haven’t done your homework and taken the right steps to get where you are, like the baby trying to walk too soon, you could fall flat on your face. Having seen too many businesses trying to grow too quickly in good times, Ray has always been sure to manage well what he can handle and grow according to his long term plans. “This has allowed him to remain in solid financial positions during tough economic times and provided him the opportunity to retain his staff at times others had to lay off employees. This has helped lead to long-term commitment and loyalty in return from his staff. ɸ Page B15

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707,305, 5,>: (\N\Z[ Éş Page B14 “Ray has always emphasized planning, anticipating change and being prepared for unexpected fluctuations, be it due to government, the broader economy or any of the myriad factors that can affect the industry; which even now, in these good times, include price differentials on a barrel of oil and a growing bias opposing pipeline development. “For Ray, the key to success for any business is simple: honesty, integrity and great service; along with that comes a lot of hard work, where your measure of success will show up over time in a good and loyal customer base. “Ray has been recognized a number of times for his contributions to the oil industry, including being named the 1996 Southeast Oilman of the Year and having been awarded the Chairman’s Award for Lifetime Contributions to the Industry from the Petroleum Services Association of Canada (PSAC) in 2011. “As much as Ray and Doris’ contributions to the oil and gas industry have been significant over the past 50-plus years, it’s their commitment to the community that will always continue to leave a lasting impression. Ray has always been deeply involved in the community since his arrival in Estevan if only for the simple reason of wanting to help create a better city, a better province and a better country in which to live. They have always felt it was critically important to support the local business community, knowing that in order for their own business to succeed, they were dependant on others within the community to support them and that if other local businesses doors were to be kept open, our citizens, themselves included, needed to support them. “This was not only the case for the city of Estevan. While Prairie Petro Chem and Prairie Mud have been headquartered in Estevan, there are several communities throughout southeast Saskatchewan in which they do business, and they feel it’s important to support each and every one of them as well. “Ray and Doris have also been strong supporters of the local service clubs, believing that their contributions to the community are critical toward making Estevan a better place to live. “Ray has served on numerous local and provincial organizations, including a number of years on both the Estevan Minor Hockey and Minor Baseball boards, having served as president of both. He was in large part responsible for the develop-

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ment of the Estevan Mets baseball club and has served on the Estevan recreation board, the zoning appeals board, the Saskatchewan Oil & Gas Show board, having chaired two shows and is still in an active role as the committee member responsible for booking speakers and banquets and organizing the lobster and steak dinner. He had served on the Action Committee for Rural Saskatchewan from 2000-2006, playing a prominent role in the Action Saskatchewan plan released by the provincial government in 2007. Ray was a key figure on two of the city’s most significant fundraising projects – the first in the early 1980s, for the construction of St. Joseph’s Hospital and more recently having played a critical role on both the fundraising committee

and the dinner committee for the construction of Spectra Place. Of course the Frehlicks were also generous contributors to the respective causes, having sponsored the cost of the walking track in Spectra Place and being an active participant in the live auctions. “His tireless efforts as they relate to community service have been duly recognized. In 2002, he had received the Queen’s Medal for community and provincial contributions, in 2006 he was inducted in to the Saskatchewan Baseball Hall of Fame in the builder category; and earlier this year, was inducted into the Saskatchewan Junior Hockey League Hall of Fame again in the builder category. ɸ Page B16

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Estevan – If you were coming back from the Saskatchewan Oil and Gas Show in Weyburn in early June via Estevan in a heavy truck, chances are you got to spend a little time at the local weigh station. Multiple agencies provided a total of 35 officers for the three-day blitz, according to Sean Mustatia, a commercial vehicle enforcement specialist with the Ministry of Highways. Those agencies included SGI vehicle standards, SGI carrier service, the RCMP, Estevan Police Service and Saskatoon Police Service, with Saskatchewan Highways in control. The officers worked around the clock, in three eight-hour shifts. A group worked east of Estevan, catching those who thought they might sneak by. The event was part of a North American road check program done with the Commercial Vehicle Safety Alliance (CVSA). “This is a focused activity of Level I inspections. It’s been a good week, on average for violations,� he said. “We started June 3 at 11 p.m. It will run 72 hours, regardless of the weather,� he said at the time. Even so, not everyone was inspected. “We can only inspect so many vehicles,� he concluded. Ten drivers were “taken out of service� for being unfit to drive, for a variety of reasons, while 108 of 398 trucks inspected were pulled out of service. That represented 27.1 per cent of the total vehicles inspected. Most were for minor infractions that could be easily and quickly corrected.

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butions to the community of Estevan, is the work he has done to establish, manage and support the Estevan Bruins. Prior to having established an SJHL team, Ray had served as president of the Bruins WCHL club. Eventually, the league expanded to a point where the Bruins couldn’t afford to ice a team, and so in 1971 they were relocated to New Westminster. Not long afterward, members of the local business community who knew they would miss having a team started to devise a way to get a new team in place. Ray Frehlick, along with Gordie Tenold, Dave Matchett and George Seregella pitched in the required $4,500 to apply for an SJHL team and provided a tremendous amount of legwork and effort into successfully attracting an SJHL team to Estevan. “In the club’s first year, Ray served as the team’s president and

manager, presiding over the club’s whopping $45,000 budget. Work commitments only allowed him to serve the one year as president, but he remained as the teams’ manager for two more years. In their formative years, the Bruins iced a very competitive team, accumulating a combined record of 135 wins and 65 losses in the first four years. “Ray and Doris Frehlick have been leaders in the Estevan business community for years and provide a stunning example of what it means to be not only a business leader but a community leader. Their philosophy of honesty, integrity and service would do us all well in both our business and community endeavours. “The Estevan Chamber of Commerce is proud to induct and welcome Ray and Doris Frehlick to Estevan’s Nick and Verna Morsky Business Hall of Fame.�

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Weyburn – Marvin Romanow, formerly president and CEO of Nexen Inc., was inducted into the Saskatchewan Petroleum Industry Hall of Fame on May 5 at the Saskatchewan Oil and Gas Show in Weyburn. Board of governors co-chair Murray Propp read his citation: “Marvin Romanow was born on August 7, 1955 in Canora, Saskatchewan. In school, subjects such as math and physics came naturally to him. With the encouragement of his teachers, Marvin decided to pursue his bachelor of engineering at the University of Saskatchewan. “Marvin completed his bachelor of engineering in 1977. Marvin was offered a position with Norcen Energy as a drilling engineer. During his brief stint at Norcen, Marvin learned to communicate in the ‘language’ of drilling engineers, drilling superintendents, tool pushers, floor hands, and field operators, a talent that facilitated driving technical excellence later in career. “In an effort to distinguish himself from other field engineers, Marvin decided to go back to school. He earned his MBA from the University of Saskatchewan in 1980 and studied the program for management development and general management at Harvard, and INSEAD, in France. Although these programs were very intensive academically, Marvin credits his fellow executive classmates for contributing to the better part of his

learning. Innovation occurs in the workplace and Marvin was happy to take away ideas and experiences from other classmates. “In the early ’90s, Marvin took his first Saskatchewan-based job at Wascana Energy in Regina. Compared to Calgary, Marvin was surprised at the significant presence of Crown corporations in Regina. During his time at Wascana Energy, he drove value from $6/share to $20/share in three years, he mentored former Crown employees on requisite personal and performance transformation, with a 60 per cent success rate and he headed negotiations that delivered an improved bid (25 per cent increase over hostile offer) from a white knight (Nexen) and was chosen as VP finance for Nexen (which was four times the size of Wascana) over numerous internal (to Nexen) candidates – just to name a few. “Previous to this, Mr. Romanow was promoted to finance manager at Dome Petroleum after having distinguished himself in the roles of reservoir, exploitation and project engineer. At Dome he worked extensively on restructuring over $8 billion of debt in one of the largest recapitalizations, sale and restructurings to that date in Canadian business history. “Mr. Romanow most recently led Nexen Inc. as president and CEO, where he had also previously served in the roles of EVP, CFO and VP Finance. In leading Nexen through col-

laboration and influence, Marvin structured three joint ventures with Asian interests, bringing over $3 billion of investment to Nexen’s business. The relationship with one of the joint venture partners led to a friendly bid for Nexen at a 60 per cent premium to the existing share price. It is no surprise Marvin was recognized as Canada’s CFO of the Year in 2007. “Marvin is characterized as a thoughtful, driven and clear-headed leader who tackles complex challenges in the oil and gas sector. He courageously restructures balance sheets, leadership teams and asset portfolios to capture remarkable economic gain. Marvin’s unique combination of technical engineering and senior financial leadership experience, coupled with his deep insights into economic drivers, make him a natural candidate for advice, innovation and execution…. and for induction into the Saskatchewan Oil Patch Hall of Fame. “Mr. Romanow married Dagmar in 1979. They have four adult children and reside in Calgary.”

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2VXP GULOOV WKH PDUNHW IRU IXQGLQJ Bonnyville – Osum Oil Sands Corp. is passing the hat to raise money to begin construction of its thermal Taiga project near Cold Lake that is scheduled produce an initial 12,500 barrels per day of bitumen. That’s also the case for Laricina Energy Ltd., Osum’s 60 per cent joint venture partner in a 10,700 barrels per day commercial demonstration project at Saleski in the Grosmont carbonates in the West Athabasca oilsands. Osum has its 40 per cent share of the estimated $520 million gross cost in place

to develop the Saleski Phase 1 expansion that received regulatory approval on July 11. The company however, continues to fundraise for its 100 per cent owned Taiga project. “We’re anticipating project sanctioning in the next several months if financing goes well with the potential to be taken to the field – clearing trees in August and having rigs moving on to pads by Q1 2014,� said Dennis Ozaruk, Taiga thermal operations superintendent. Ozaruk provided a project update at the Osum Blue Lounge in the Centennial Cen-

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tre lobby during the Bonnyville & District Oil and Gas Show on June 19-20. The company posted a full page ad in the program guide, inviting visitors to learn about the new project timelines after telling the community back in 2011 that construction was set to begin. “There’s been a lot of interest from the community on project status on Osum,â€? said Ozaruk. “It’s been a long process – getting the project matrix right and the economics right around the projects and following up with the financing.â€? It’s been a challenging journey for Osum since the first oil show in 2011, but the company has since opened an office in Cold Lake and the Alberta government approved Taiga for a 35,000 barrels per day project in 2012. The Taiga project has been assigned 359 million barrels of proved plus probable reserves. ɸ Page B19

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ĞŶŶŝƐ KnjĂƌƵŬ͕ Ă ƚŚĞƌŵĂů ŽƉĞƌĂƟŽŶƐ ƐƵƉĞƌŝŶƚĞŶĚĞŶƚ ĨŽƌ KƐƵŵ Kŝů ^ĂŶĚƐ ŽƌƉ͛͘Ɛ dĂŝŐĂ ƉƌŽũĞĐƚ ŶĞĂƌ ŽůĚ >ĂŬĞ͕ ĐŽŶĚƵĐƚĞĚ Ă ƉƌŽũĞĐƚ ƵƉĚĂƚĞ Ăƚ ƚŚĞ KƐƵŵ ůƵĞ >ŽƵŶŐĞ ĚƵƌŝŶŐ ƚŚĞ ŽŶŶLJǀŝůůĞ Θ ŝƐƚƌŝĐƚ Kŝů ĂŶĚ 'ĂƐ ^ŚŽǁ :ƵŶĞ ϭϵͲϮϬ͘

ɺ Page B18 The project will use steam-assisted gravity drainage or SAGD to produce oil from the Lower Grand Rapids and Clearwater formations. The focus has recently shifted to raising additional funds to assist in the development of the initial 12,500 barrels per day commercial production target. “Right now we are moving into detail engineering. We’ve select Scope Engineering Inc. and Drifter Projects Ltd. as project management,” said Ozaruk. Osum expects to be on a hiring blitz when construction goes ahead. “There has been some strategic hiring. Once we get project sanctioning, we will be aggressively going out and recruiting people. Our needs will be pretty urgent,” said Ozaruk. Ozaruk is keeping busy with a number of activities including providing input on detailed engineering at Taiga and sitting in on discussions around their Saleski East, Saleski West and Liege project sites. Their 10,700 barrels per day joint venture project with Laricina also called the “10/7” will use a combination of cyclic SAGD and solvent cyclic SAGD in the Grosmont carbonate formation. The venture pilot project at Saleski has demonstrated commercial production rates in the Grosmont since 2011 and will be the first commercial project in the carbonate reservoir. Phase 1 will be the first of six potential expansion phases expected to increase Saleski’s production to more than 280,000 barrels per day over a 30 year period. First oil from the Phase 1 expansion is anticipated in late 2015, assuming a 2013 final investment decision. “Laricina is trying to take care of their financing for the 10/7 project. Osum has their share of the financing in place,” said Ozaruk. Laricina’s Saleski leases contain 76 million net barrels of probable reserves and 1.6 billion net barrels of best estimate contingent resources in the Grosmont formation. “We’ve seen some pretty encouraging results from that project,” said Ozaruk. “It has huge potential. The implications for the province are huge.” The Grosmont formation is Alberta’s second largest oil-bearing resource, behind the McMurray oilsands. Osum has also completed a lot of delineation work on the Saleski joint venture project and some delineation at its Liege property. The company recently submitted an environmental impact assessment and a commercial application for a 60,000 barrels per day project at its 100 per cent owned property at Saleski East. Regulatory approval is targeted for 2014. “Once we get that, we will move toward the financing there. That project can move forward in the next several years,” said Ozaruk.

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The Estevan Oilwomen’s Golf Tournament took place at the TS&M Woodlawn Golf & Country Club on July 19. It was sunny, then it rained. Then it hailed. Hard. Really hard. Hail as big as toonies were seen in Estevan, and some women got caught in it. Even so, they had a lot of fun. Photos by Brian Zinchuk

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Calgary – July 9 saw the naming of six builders of the oil and gas industry into the Canadian Petroleum Hall of Fame. Included in the inductees was the Calgary lawyer who owned the mineral rights to the iconic Leduc No. 1 discovery well and the son of the toolpush who drilled that well. The six are among the more than 140 men and women inducted since the Hall of Fame was established in 1997. From more than a dozen nominees, the Hall of Fame selection committee, chaired by Gerry DeSorcy, a former chairman of the Energy Resources Conservation Board, recommended to the Hall of Fame’s Board the following inductees: Clement Willis Bowman: With a long career in Canada’s oil and gas industry, Dr. Clem Bowman is best remembered as the first chairman of the Alberta Oil Sands Technology and Research Authority in the late 1970s and as president in the 1980s of the Alberta Research Council. Under his leadership, AOSTRA created the Underground Test Facility, which contributed to the development of the technology now widely used in the in situ production of bitumen. James Edward Clarke Carter: Jim Carter was president of Syncrude Canada Ltd. from 1997 until his retirement in 2007. On his watch, Syncrude replaced draglines and conveyor belts with electric shovels and massive dump trucks for overburden removal and ore mining, and the technology is now used in all bitumen mining operations. Carter also advocated for responsible development, and was instrumental in establishing Syncrude’s model working relationship with Aboriginal stakeholders. Sidney Clarke Ells (1878 – 1971): Sidney Ells was an early surveyor of the oilsands region around Fort McMurray, first undertaking a detailed survey of the oil sands along the Athabasca River in 1913 and later experimenting with hot water separation of the oil sands. He also played a key role in supporting the first bituminous sand permit issued under federal regulations before resource development was turned over to Alberta in 1930. Eric Lafferty Harvie (1892 – 1975): A Calgary lawyer and philanthropist, Eric Harvie won the ultimate lottery in 1947 when a cow pasture south of

Edmonton on which he held mineral rights was home to Imperial Oil’s iconic Leduc No. 1 discovery well. The resulting windfall helped Harvie establish the Glenbow Museum, the Banff School of Fine Arts, the Calgary Zoo, Heritage Park and the Devonian Foundation. Donald Franklin Hunter: Don Hunter’s connections to the western Canadian oil and gas industry go back a long way. His father was Vernon (Dry Hole) Hunter, the now-legendary toolpush on the now-legendary Leduc No. 1 well that ushered in the modern oil and gas industry in Alberta. A petroleum engineer by vocation, Don worked for Imperial Oil in Saskatchewan, the Northwest Territories and Alberta before launching his own oil company, Resman Oil and Gas Ltd. Since his retirement in 1996, Don has committed his efforts to the development, maintenance and growth of the Leduc No. 1 Energy Discovery Centre, the largest of its kind in Canada and one of the largest in the world. David Paul Werklund: An entrepreneur, oilfield industry leader and dedicated philanthropist, Dave Werklund established Canadian Crude Separators in 1984 and grew it into a $3.7 billion enterprise before consolidating all its moving parts under the Tervita banner in 2012. He was named Ernst & Young’s Canadian Entrepreneur of the Year in 2005 and his Werklund Foundation is dedicated to supporting initiatives that empower students and educators with the leadership skills needed to realize their potential. “Once again, our selection committee has done a tremendous job putting forth names of quality inductees,� said Bill Whitelaw, chairman of the Canadian Petroleum Hall of Fame. “The board is very pleased with the calibre of the six individuals who will join other key industry builders.� Whitelaw added, “Anyone who has concerns about the future of our industry need only spend some time poring over the stories of Hall of Fame inductees to understand how solid the foundation they have built is.� The 2013 honoured members of the Canadian Petroleum Hall of Fame will be inducted at a celebration dinner at Calgary’s Westin Hotel on Sept. 26, 2013. Guest speaker will be Jim Ellis, new head of the Alberta Energy Regulator.

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Weyburn – It all started with a conversation about hauling their own waste. Now, three years later, Goliath Disposal Ltd. of Weyburn has been on a continual growth streak, with plans to more expansion in the future. Goliath is a partnership between Brad “Charlie� Sterling, his wife Teresa, and Dan Cugnet and his wife Tana. Teresa acts as office manager. In addition to the ownership, the team is rounded out by Steve Hellmig, Cam Baptist and Dennis Thompson, their three full-time drivers. Cugnet and his family are involved in several other oilpatch ventures in the area. Sterling recounted the conversation that started their venture. Cugnet had a lot of waste bins in operation from another provider. Sterling said to Cugnet, “Why don’t you pick up your own garbage?� X Page B24

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$ FDUHHU FKDQJH IURP IDUPLQJ DQG WKH RLOSDWFK W Page B23 “Danny said, ‘Well, I would, if I had someone to do it with.’’ Sterling wanted a career change, as he was getting out of farming, and didn’t feel like returning to the oilpatch directly. In his younger days he had worked on service and drilling rigs. He had also spent six years working at the Alcatel/Nexens wire plant in Weyburn. Cugnet said, “We talked about it. It looked like there was an opportunity.� He noted there is one big local player in the waste handling business in the region, as well the mammoth international firm, Waste Management.

Goliath Disposal started operations in October 2010. “Ultimately, in southeast Saskatchewan, everyone’s got a tie to agriculture or oil in one way or another,� Cugnet said. He noted there’s a pioneering spirit in the area. He had been involved in both agriculture and oil all his life, being raised in it. Cugnet’s and Sterling’s farms were just a few miles apart, south of Weyburn. Cugnet grew up on a farm, and worked in the oil industry. He spent many years as a land agent in Alberta and Saskatchewan. He still farms, and is involved in other ventures. X Page B25

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W Page B24 “I had always been interested in it for a long time,� Cugnet said, referring to waste management and recycling. “The disposal industry has a dirty reputation, but it’s very progressive. A lot of things are changing in the world.� Goliath’s clientele is wide-ranging, but primarily commercial. They have municipal contracts for the RM of Griffin and Nickel Lake, but no larger communities yet. However, in building their fleet

of front-loading trucks, they purchased trucks that would be capable of adding sideloading arms to pickup up the roll-out carts used for household pickup. They would like to bid on municipal contracts for larger communities, but the pair noted it takes lead time to ensure the capacity is in place for such contracts. “It’s oilfield, manufacturing, retail – anything and everything,� said Cugnet. “There’s acreages, lots

of oilfield batteries, renovations. During the flood of 2011, it was anybody and everything.� “We want to do everything. We moved into Estevan on January 1,� he added. They’ve also added Stoughton, Forget, Lampman and Carlyle. They have their sights set on Ogema, Oungre and Radville. Essentially, Goliath is looking at all of southeast Saskatchewan eventually. “We’ve really expanded, and taken a big push outward,� according to Cugnet. X Page B26

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*ROLDWK HVKHZV ORQJ WHUP FRQWUDFWV W Page B25 But Sterling pointed out the importance of ensuring they don’t outpace their abilities. “Good customer service is our No. 1 priority. We don’t want to run too far without knowing we can walk there first.� Cugnet said they eschew the long-term contracts standard in the waste industry. “The industry is built on longer contracts. We bucked the trend of long-term contracts. If we’re doing our job and people are happy, we don’t need to have that. If our customers are not happy, they should not be stuck with us.� Goliath Disposal has four front-load trucks and two roll-off trucks. The front loads are used for typical dumpster service and have the aforementioned roll-out cart expandability. Roll-offs are the large bins often used in the oilfield, especially for construction sites like batteries and pipelines. Recently they’ve added two oilfield specialized roll-off containers. The units have separate compartments for trash and metal. The main compartments have a lid on top to ensure nothing flies away, onto the lease. In a covered box in the front, there are barrels for used antifreeze, used oil, rags and filters. One of the key pieces of the equation for waste handling is its final des-

tination. The City of Weyburn’s landfill is in the process of changing into a utility and opening up to receiving loads from outside its previous catchment area. This allows Goliath to bring loads in that would otherwise have been shipped to Regina. Goliath is interested in increasing its recycling capability in the future. Cugnet said, “Whether it’s waste, or garbage, our goal is to set up a facility to pull more of it out of that stream. Everyone’s keyed up on recycling. Bigger centres have gone to recycling out of necessity.� He noted that increasing recycling means extending landfill’s useful lives, and a cost savings is a result. “Recyclables are a volatile market. They always have been, and always will be. People more and more want to do it. If we can keep it (waste) out of a hole in our backyard, most people want to do it.� New environmental regulations from the province will change how the waste industry works, he noted, affecting everything from lagoon cells to oilfield practices. “I like to think industry is ahead of that and doing what is necessary.� The company has donated its services to the recent oil show, as well as minor soccer. Instead of a cash donation, providing garbage pickup is one way Goliath can give back to the community. “We’ve been really fortunate. We had an idea, and everything else has lined up – great employees, a strong economy and the support of the southeast community,� Cugnet concluded.

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Bonnyville – The Pickford Group Ltd., a distributor of flow control, valve automation and plant maintenance equipment, is on a growth tear with new facilities, products and services and leadership. The good news was delivered by new company president Mel Kassian at the Bonnyville and District Oil and Gas show where he shook a lot of hands. “I’ve been with the company just over three months and have gotten to know our management team,� said Kassian. “I am really excited about some of the new opportunities and some of the things our company’s going to be doing. “On November 1, we are moving into a new building. We’ll be doubling the size of our facilities and our corporate office will be in Edmonton. “We are looking at further expansion – but doubling our shop, and adding new products and services and people.� The recent expansion is well-timed as Pickford will celebrate its 25th anniversary in 2014. The company is a growing distributor of flow control/valve automation and plant maintenance equipment for oil and gas, refinery, food processing, pharmaceutical, pulp and paper, and mining industries in Western Canada. X Page B30

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3LFNIRUG *URXS JURZLQJ H[SRQHQWLDOO\ \HDU RYHU \HDU W Page B29 The flow control and valve automation division distributes specialized products for manual and automated valve projects and provides pneumatic and electric solutions for valve automation requirements. The plant maintenance division provides specialized tooling solutions for plant maintenance and construction applications, particularly in the oil and gas industry. “On the plant side, we have been growing exponentially year over year just with added services and things that we’re doing,� said Kassian. “We are known for being a number one service provider in terms of customer service in what we do with the product and we have been backing that up over the years.� The company has trained technicians to calibrate and certify of all its pneumatic and hydraulic torque tools. Their booming plant maintenance division sells and rents equipment for tasks such as bolting and tensioning, and flange joint integrity during refinery turnarounds and maintenance. It operates a mobile trailer to demonstrate the safe use of maintenance equipment for conducting pipe cold cutting, flange weld test plugs, exchanger

testing and hydrostatic test plugs. Kassian is bullish on the prospects for continued growth for both divisions. “Both sides have huge potential for growth because we are bringing in new lines in the flow control – Red Point Alloys being one of them,� he said. Red Point makes a variety of ball, gate and check valves and custom valves in nickel alloys, titanium and super duplex steel. “Recently, it’s had tremendous success and a lot of demand for that product,� said Kassian. “We are also looking for other products to bring on stream.� Pickford is looking at eventually expanding into the Saskatchewan where some of their competitors have established branches. “In the Western Canadian market, we are looking at the activity particularly in Saskatchewan,� he said. “There are a number of opportunities that are starting to move in that province, particularly in the south in the energy industry, as well as the agriculture sector and some of the other industries that are starting to emerge,� said Kassian. “We do some work there now, but other companies such as PCL and others are setting up shop there.

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%86,1(66 HARVEY KING: Call 306-634-9888 Owner/President SALES: Call 306-634-7212 Bonnyville – Site Energy Services has launched a new access matting entity as a growing provider of remote access, environmental and infrastructure services. The new affiliate, Site Energy Access Solutions (Seas), provides mat rentals, sales, trucking and inventory control services from an office in Cold Lake. Seas shared a booth at the Bonnyville & District Oil and Gas Show with Site Energy’s Bear Slashing Inc. subsidiary where they featured their matting solutions for operating equipment on unstable ground and environmentally sensitive areas. “We just started the division in December and we have an inventory of about 6,000 access mats and a couple

of hundred rig mats,� said Seas manager Carson Frolick. “It’s grown fairly rapidly over the past few months.� The new company is coming off its first spring season where they saw strong initial demand for matting coming from oil and gas and utility companies. “We used lots of mats. We had a couple of big jobs going with some power line companies in the Edmonton area and oilfield road leases with mats up by Conklin,� said Frolick. “In Fort McMurray, we’ve got mats – pretty much from northern to southern Alberta.� Seas carries a large inventory of eightby-14-foot wood interlocking mats to

handle the movement and operation of heavy equipment for oil and gas, mining and potash development projects. The company acquires them prebuilt from several suppliers, with most of the mats made from fir and oak that is harvested in British Columbia.

Harvey King & staff are eager to bring you the same quality service you have become accustomed to when dealing with:

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)XOO PHDO GHDO ZLWK DFFHVV PDWWLQJ W Page B31 “We also have eight-by-40-foot steel rig mats and any type of specialty mat that you would need for access or for leases or highly sensitive areas we work in – soft conditions – pretty much anywhere where access is a problem,� said Frolick. The company also has an assortment of snowmaking equipment to fill in creeks, river and dips with snow as an environmentally friendly access option. Seas is gearing up for its first fall season and took advantage of the Bonnyville oil show to let visitors know they are backed by the full resources of Site Energy and ready to service Western Canada. “We’re here just to get some more contacts,� said Frolick, who was manning the Seas booth. “I’m here to promote our matting division and let more people know about it. It seems it’s so new and we do the ‘full meal deal’ with access mat-

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ting. “We have equipment for placing them. We sell them; we rent them and oil companies hire us to place the mats for them, and we go in and retrieve them and store them for different oil companies. “It’s pretty much the ‘full meal deal.’� Unlike Bear Slashing Inc. in Bonnyville, which Site Energy acquired in 2010, Seas was born from an internal opportunity for Site to further diversify its remote access and environment services. “Site saw an opening in the market to supply mats on some of our jobs where we needed them,� explained Frolick. “We started our own matting division instead of hiring someone to do it.� Frolick used to work for Timberline Industries. Site Energy was formed in March 2010 through the acquisition of Timberline and the Tri City Contracting group of companies. The company now operates out of 14 locations in Alberta, Saskatchewan and Manitoba with a variety of divisions and affiliates including Bear Slashing. The Bonnyville oil show held June 19-20 is the slowest time of the year for Bear Slashing and their best time to pitch their established mulching, line cutting and logging services to new and familiar clients. “We do logging and mulching in regards to leases and pipelines and power lines and that sort of thing,� said Dallas Lauzon, Bear’s resource manager. “Most of it is in the wintertime when the ground is frozen.� Bear Slashing operates one of Canada’s largest fleets of land clearing equipment including feller bunchers, skidders, and delimbers. The company also has a fleet of specialized CMI mulchers from 125 to 600 hp with the bulk of winter work taking place in northern Alberta. “It’s pipeline and seismic – mostly oil-related. We do some residential for land owners when they want to clear lots for their houses,� said Lauzon. Bear Slashing’s oil and gas operations range from mulching low impact seismic lines for 2D and 3D surveys to lease site construction, cleanup and reclamation. The company is also set up to tackle a wide list of specialty environmental applications for forestry, agriculture, construction and recreation markets.

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7KHUH·V PRUH WKDQ RQH ZD\ WR LQVWDOO D SLOH Estevan – Nine years ago, Dart Services Ltd. got its start installing screw piles for foundations. A year-and-a-half later, they added concrete pumping. Now they are rounding out their services by adding a new, but related service – driven piles. The service comes with the arrival of a Junttan PMX22 piledriver this past spring. They had it on display at the Saskatchewan Oil and Gas Show in Weyburn. By late June, they were doing test runs, installing piles for field lighting at Estevan’s Quewezance Memorial Field, near the Souris River. “They’re built in Finland,” said Davin Emmel, who a partner with Marty Hanson in the ownership and management of Dart Services. The company has five pumping units. One screw pile unit is based on an excavator, another on a boom truck. The smallest uses a skid-steer loader. The Junttan PM 16 piledriver, on the other hand, is anything but small, even though this unit is one of the smallest Junttan makes. It’s one of the larger pieces of iron you will see in a region used to big heavy equipment. It has its own trailer with a jeep and booster, adding axles and wheels to meet weight requirements on the road. In order to grow the company, the partners felt such a unit was necessary. “We’ve seen so many of these driven jobs come across our desk , we knew we had to reacto the the market forces as well as meet the expectations of our valued customers. Furthermore, we wanted to be able to provide options to our customers rather than being limited to one specific method,” Emmel said. They could have gone with a smaller machine, but the choice of a larger unit means there’s little they can’t do now. “It depends on soil conditions. I'm confident that this unit can handle almost any application in this area,” he said. They started tossing the idea of a piledriver around last fall, according to Hanson. The machine is basically brand new, with just a few hours on it. It has a hydraulic hammer. “The hammer has four feet of stroke. It can be configured in four, five or six tons. The hammer itself is 16,000 pounds,” Emmel said. “Contingent on soil conditions, the operator has the option to stroke it an inch or four feet. ” The bottom of the hammer is not a flat surface. Rather, there’s a tube that &Žƌ ŶĞĂƌůLJ Ă ĚĞĐĂĚĞ͕ ƐĐƌĞǁ ƉŝůĞƐ ĂŶĚ ĐŽŶĐƌĞƚĞ ƉƵŵƉŝŶŐ ǁĞƌĞ Ăƌƚ ^ĞƌǀŝĐĞƐ͛ ďƌĞĂĚ ĂŶĚ captures the end of the pile, and the striking surface is within that tube. As a ďƵƩ Ğƌ͘ EŽǁ ƚŚĞLJ ĂƌĞ ĂĚĚŝŶŐ ƉŝůĞ ĚƌŝǀŝŶŐ ƚŽ ƚŚĞ ŵŝdž͘ result, it should not mushroom the pipe. ɸ Page B34

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Part of the operator’s skill is positioning the top end of the pile into that tube. “We sent our operator, Kelly Freiss, down (to Delaware) for a month of comprehensive training,� Emmel said. An instructor came up to Estevan for several days to help get Dart Services on their feet. While putting in the piles at the football field, he warned that you have to have some resistance, or the hammer will just keep going. “You’ll never see it again,� he joked. The ground was so saturated, the steel piles were easily gliding into the ground. From the outside, the machine might look like an simple excavator with a couple of joysticks and pedals. That’s not at all the case. There are in fact five joysticks and two pedals, with three rows with six switches each. The machine is computer controlled. Compared to conventional, crane-based piledrivers, the hydraulic Junttan PMX22 fits on one trailer, not three, takes; 25 minutes to set up, not hours, and can operated with a crew of just two, not five or more. It is possible to do two jobs or more in a day. Since the machine clutches the pile near the ground, guiding it while the other end is capped, it is able to pound piles to within one degree of accuracy. That makes “batter piles,� piles installed at

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an angle, much easier to install. Hanson said, “We can do I-beam steel, but the majority of the work will be round, either wood or steel. It gets delivered right from the mills.� They can also work with pre-cast concrete piles, an example of which is planned for Churchbridge, Sask. The machine is also capable of driving sheet piling. “In general, from driving onto site to starting the first installationit's approximately 25 minutes,� Emmel said. “We can do up to 73 feet in one piece, and can add sections.� The unit is in commission now. “There’s always new stuff,� Hanson said of projects. “It’s hard to tell until you get your name out there.� They had a big hotel project lined up in Regina for July. In August, the company will work on the new TS&M shop in Estevan. “We’re willing to go anywhere, if needed. Hotels, batteries, bridges – anything that calls for a driven pile,� Emmel said. In the meantime, Dart Services has been busy with their screw pile units. They installed a veritable forest of piles at the new PTI Lodge northeast of Estevan, with 1,513 piles, each 25 feet long, installed over the course of 10 days with one unit.

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Regina – Saskatchewan continues to raise the bar for employment, having set a new standard in June with a record 568,200 people working in the province. The number tops the previous record of 560,090 people working in May and gives Saskatchewan the bragging rights to having the highest employment growth in Canada. The province also had the lowest seasonally adjusted unemployment rate in the nation in June at just 3.7 per cent compared to 7.1 for the national average. There was also a record 16,504 jobs posted on the government’s saskjob.ca website in June, an 8.54 increase compared with June 2012. “The majority of these postings are full-time positions,â€? said Bill Boyd, minister of Economy. â€œThis shows that employers are continuing to create permanent positions, and job seekers have the opportunity to obtain stable, well-paying employment to help establish their futures here in Saskatchewan.â€? Regina’s unemployment rate was 3.7 per cent in June and Saskatoon came in at 3.9 per cent. Regina had the lowest unemployment rate

among major cities and Saskatoon had the second lowest rate. “Saskatchewan has the strongest economy in Canada and that’s creating thousands of new jobs and opportunities for Saskatchewan people,â€? said Advanced Education Minister Don Morgan. â€œOur government set ambitious employment targets in the Saskatchewan Plan for Growth and we’re making progress on those targets by investing in training and participating in recruiting initiatives to attract skilled workers to Saskatchewan.â€? There were 19,300 more people working on a year-over-year basis in June, a 3.5 per cent rise which is the highest percentage increase among the provinces. Over 90 per cent of the new jobs created in the past year were full-time. There were 12,000 more women working in Saskatchewan than a year ago, accounting for over 60 per cent of the employment growth. By sector, the largest employment gains in the past year were in agriculture (6,200), trade (5,200),

professional, scientific and technical (4,000) and construction (2,900). Off-reserve Aboriginal employment was up by 1,200 for five consecutive months of year-over-year increases. Saskatchewan has experienced 19 straight months of year-over-year increases in employment. There were 986,521 visits to saskjobs.ca in June, up by 4.7 per cent on a year-over-year basis. Mobile device hits totalled 295,421, which was 89.72 per cent higher than June of 2012. Employers from 327 communities in the province posted jobs in the month of June. More than half of the jobs are in two categories, sales and service, and trades, transport and equipment operators. â€œSaskatchewan continues to be a national economic leader,â€? said Boyd. â€œSaskjobs.ca is a fantastic resource for people from both here and abroad looking for new opportunities and to take part in the prosperity our province has to offer.â€?

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Heward – After moving into the oilfield liquids disposal game in southeast Saskatchewan with its acquisition of Palko Environmental Ltd. in 2011, Gibson Energy Inc. has now expanded into solids handling. In January 2013 it opened its Heward Class II Industrial Landfill, located approximately four kilometres nortwest of Heward, Sask. Construction was completed in December 2012. Gibson owns the quarter, noted Dave Hemphill, plant manager. “We’ve built our first cell. We’re looking to do our construction on our second cell

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this year,� he said. That may seem a little soon, but it’s meant to ensure there is enough room for next year’s work. As cells connect to each other, it’s important to have the next one ready when one starts to fill. The first cell is approximately 150 x 200 metres. Berms circle the edge. The facility takes industrial waste, primarily soil impacted with hydrocarbons or produced water. This can be from flowline leaks. They also take drill cuttings. The landfill is close to Highway 33, just two kilometres north, but even though the road has been upgraded, it is still subject to seasonal road restrictions. There were numerous reasons this site was selected, according to Hemphill. The top of the list included the geotechnical ground characteristics and hydrology. It’s also far enough from the highway, but close enough to the markets, being a proverbial hop-skip-and-a-jump away from Stoughton, the epicentre of the Saskatchewan Bakken play. The facility is engineered, and meets current and expected regulations, according to Hemphill. There is an under-drainage system, one metre

of compacted clay and a 60-mil. High-density polyethylene (HDPE) liner. Then there’s a leachate collection system of geocomposite, providing a conduit for leachate to be collected. On top of all that is one metre of waste material, e.g. soil. “It’s beyond the current legislation, and built for the new design code that will be in effect,� he said. Six people work at the facility, which operates from 7 a.m. to 7 p.m., seven days a week. They keep straw bales for truckers seeking to line their truck beds. There’s a weigh-in/weigh-out scale that’s 80-feet long. A treatment pad is in place for material handling, allowing for analysis before new waste is transferred to the cell if analysis had not been done prior to delivery. The new facility rounds out Gibson Energy’s waste handling capabilities in the region, allowing solids collected at their liquids facilities near Midale, Oungre and Stougton to have a home within the company. However, the landfill takes product from third parties as well. “We can accept non-hazardous waste,� Hemphill said. “Anything deemed hazardous has to go to a Class I landfill or caverns.

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Please drop off resume at: 101 Jahn Street, Estevan or call: Mike Brasseur at 306-634-4554 or 306-461-8111 or Brad Alberts at 306-634-4554 or 306-461-8153

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WELLHEAD ISOLATION SERVICE TECHNICIANS AND TRAINEES ISOLATION Equipment Services Inc. an expanding Oil Service & Supply Company is seeking quality Service Technicians and Trainees. Previous exp. with service rigs, fracturing, or similar industry exp. with oilďŹ eld tickets is an asset. Class 1 or 3 driver’s license applicants will get primacy (Drivers with Class 5 & 5Q will be considered if applicant has relevant oilďŹ eld experience). A current driver’s abstract req’d. Off-road driving exp. is an asset. MUST HAVE valid H2S and AB/BC First Aid Tickets BENEFITS

• Exc. monthy guaratee • Exc. job bonus • Northern Allowance Program • Retirement Plan

• Lucrative Quarterly Safety Bonus Program • Excellent BeneďŹ t Plan and Travel Expenses • Christmas Bonus

Fax or email your resume and driver’s abstract to: Fax: (403) 347-3406 Email: l.enzie@isolationequipment.com or drop off at 307 Clair Street Arcola, Saskatchewan ATTN: Lori Enzie or Ron Hayward

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:

Customer Service Representative Estevan, Saskatchewan 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.

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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.

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Pipeline News

SECTION C August 2013

Pipeline News is two sections this month. Stay tuned next month for General Oilfield Maintenance.

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