Pipeline News October 2013

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October 2013

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7KH FOHDQ FRDO TXHVWLRQ ZLOO EH DQVZHUHG ULJKW KHUH DW %RXQGDU\ 'DP Â&#x201E; By Brian Zinchuk Pipeline News Estevan â&#x20AC;&#x201C; The $1.24 billion Boundary Dam Carbon Capture Project is in the home stretch, with both the power island and carbon capture island now in the commissioning process.

With the final pieces coming into place, itâ&#x20AC;&#x2122;s a good time to start showing it off.

Premier Brad Wall commented on the projectâ&#x20AC;&#x2122;s progress on Aug. 29 when he escorted North Dakota Senator Heidi Heitkamp, as well as Basin Electric Power Co-operative CEO Andrew Serri on a tour of the facility.

According to the Basin Electric website, their core business is generating and transmitting wholesale bulk electric power to customers. Those customers are primarily to its 137 member rural electric systems, located in nine states: Colorado, Iowa, Minnesota, Montana, Nebraska, New Mexico, North Dakota, South Dakota, and Wyoming.

The companyâ&#x20AC;&#x2122;s largest subsidiary, the for-profit Dakota Gasification Company, owns and operates the Great Plains Synfuels Plant near Beulah, N.D., which gasifies lignite coal and captures some of the carbon dioxide emissions (CO2) and sends them to the Cenovus Weyburn Unit for use in enhanced oil recovery and geologic storage.

Senator Heitkamp was a former director

largest producer of oil in the United States, and weâ&#x20AC;&#x2122;re headed towards a million barrels a day. â&#x20AC;&#x153;Basin Electric led the way with carbon capture behind the Dakota Gas Plant, sending it up here for injection into the Weyburn field.

This is world-renowned technology that we are doing in our region of the world. Now right here is SaskPower, leading the way. These men and women who have worked so hard on the project are going to demonstrate to the WĆ&#x152;Ä&#x17E;ĹľĹ?Ä&#x17E;Ć&#x152; Ć&#x152;Ä&#x201A;Ä&#x161; tÄ&#x201A;ĹŻĹŻ Ĺ&#x2021;Ä&#x201A;ŜŏÄ&#x17E;Ä&#x161; Ä?Ç&#x2021; hÍ&#x2DC;^Í&#x2DC; ^Ä&#x17E;ĹśÄ&#x201A;Ć&#x161;Ĺ˝Ć&#x152; ,Ä&#x17E;Ĺ?Ä&#x161;Ĺ? ,Ä&#x17E;Ĺ?Ć&#x161;ĹŹÄ&#x201A;ĹľĆ&#x2030;Í&#x2022; Ć&#x152;Ĺ?Ĺ?Ĺ&#x161;Ć&#x161;Í&#x2022; Ä&#x201A;ĹśÄ&#x161; Ä&#x201A;Ć?Ĺ?Ĺś ĹŻÄ&#x17E;Ä?Ć&#x161;Ć&#x152;Ĺ?Ä? K ĹśÄ&#x161;Ć&#x152;Ä&#x17E;Ç ^Ä&#x17E;Ć&#x152;Ć&#x152;Ĺ?Í&#x2022; ĹŻÄ&#x17E;Ĺ&#x152;Í&#x2022; Ä?Ĺ&#x161;Ä&#x201A;Ć&#x161; Ä&#x201A;Ĺ&#x152;Ä&#x17E;Ć&#x152; rest of world we can Ć&#x161;ŽƾĆ&#x152;Ĺ?ĹśĹ? Ć&#x161;Ĺ&#x161;Ä&#x17E; ŽƾŜÄ&#x161;Ä&#x201A;Ć&#x152;Ç&#x2021; Ä&#x201A;Ĺľ Ä&#x201A;Ć&#x152;Ä?ŽŜ Ä&#x201A;Ć&#x2030;Ć&#x161;ĆľĆ&#x152;Ä&#x17E; WĆ&#x152;ŽŊÄ&#x17E;Ä?Ć&#x161;Í&#x2DC; continue to use coal in a responsible, sustainable of Dakota Gasification. important for another going to work. Weâ&#x20AC;&#x2122;re We can say that with way,â&#x20AC;? Heitkamp said.

A Democrat, she took reason. One of the most confidence, because of going to go through the In coming up to her place in the Senate dynamic portrayals of testing soon, and in the take a look, she said, this project, because of last January after being what you can do when new year itâ&#x20AC;&#x2122;s going to go â&#x20AC;&#x153;When I talk about the co-operation that elected in November United States and we have. live,â&#x20AC;? Wall said. clean coal, and when 2012.

Canada co-operated on â&#x20AC;&#x153;For those who say, â&#x20AC;&#x153;What a credit to I talk about carbon â&#x20AC;&#x153;I think thereâ&#x20AC;&#x2122;s this very issue is repreâ&#x20AC;&#x2DC;Is there such a thing as the men and women of capture on the floor of an understanding we sented in North Dakota, clean coal?â&#x20AC;&#x2122; weâ&#x20AC;&#x2122;re going SaskPower who have the United States Senshare of making energy an organization she has to answer that question had the vision and the ate, I want to say, â&#x20AC;&#x2DC;Iâ&#x20AC;&#x2122;ve production more susbeen a part of, we have right here at Boundary ability to pull this off, as been there. It works, tainable,â&#x20AC;? Wall said in Basin Electric here. We Dam. I think we can well as the engineering itâ&#x20AC;&#x2122;s going to work, weâ&#x20AC;&#x2122;re reference to Heitkamp. are today storing CO2 firms.â&#x20AC;? also give them some leading the way in makâ&#x20AC;&#x153;We have to deal with in the Weyburn area, Heitkamp noted, encouragement when ing the investments to CO2 issues, we have to storing it efficaciously we consider our history â&#x20AC;&#x153;Iâ&#x20AC;&#x2122;ve heard that itâ&#x20AC;&#x2122;s on continue to use coal in time and on budget. deal with other environ- by the way, according together. Weâ&#x20AC;&#x2122;ve broken our energy mix.â&#x20AC;&#x2122; Did everyone hear that? mental issues relating to to the International ground before, weâ&#x20AC;&#x2122;ve â&#x20AC;&#x153;This story needs â&#x20AC;&#x153;Like I tell the energy. We need to do it Energy Agency, (in) the pioneered technology. I to get told, nationwide worldâ&#x20AC;&#x2122;s largest storage want to thank the sena- people in Washington, in a way where we can in our country, but also still contemplate the use of CO2. Weâ&#x20AC;&#x2122;re doing it tor for being here.â&#x20AC;?

D.C., we donâ&#x20AC;&#x2122;t really worldwide.â&#x20AC;? because of a pipeline see a border in North of coal, frankly, because He noted HeitWith North Dakota from North Dakota.

Dakota. We think of kampâ&#x20AC;&#x2122;s recent visit to itâ&#x20AC;&#x2122;s not going away. We now producing 820,000 From Beulah, North Saskatchewan and can still see hydrocarthe Alberta oilsands, barrels of oil per day Dakota, that CO2 and added it is imporManitoba the same as bons playing a big part via primary production, Minnesota and Monin energy production. comes, itâ&#x20AC;&#x2122;s used for entant to look at such and a with large numtana and South Dakota. ber of coal-fired power Until one day where we hanced oil recovery, we things first hand.

Youâ&#x20AC;&#x2122;re our neighbours. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re going to get to that transition store it, and it works. plants, are the state and What is so amazing is fuel where CO2 wonâ&#x20AC;&#x2122;t be be testing this facility â&#x20AC;&#x153;For those who Basin Electric looking a problem, we need to we believe weâ&#x20AC;&#x2122;ve led the at carbon capture for wonder, is CCS (carbon in the fall. Iâ&#x20AC;&#x2122;m looking make energy in a clean world in innovation in capture and storage) at all the SaskPower enhanced oil recovery in way for our respective the oilfield, when you part of the CO2 mitiga- people and thanking the future and to extend economies. look at hydraulic fraction plans for the world, them, again that this the life of the Bakken â&#x20AC;&#x153;You know, havturing in oil shale. We is it technology that will project is on time and field? ing the senator here is are already the second work? The answer is yes. on budget, and itâ&#x20AC;&#x2122;s ɸ Page A8

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In Saskatchewan, Painted Pony Petroleum Ltd. has participated in the drilling of three (1.4 net) wells to date this year, of which one (0.3 net) Bakken well was drilled at Flat Lake during the second quarter of 2013.

This well has been completed and is expected be placed onto production immediately.

At Midale, Sask., the company has received all necessary approvals to implement a pilot pressure maintenance program on its Bakken project. This water injection scheme is expected to improve overall oil recovery by up to 50 per cent from current levels. Injection is expected to begin during the third quarter.

Painted Pony continues to maintain an inventory of light oil opportunities, focusing on the continuing development of lower-risk projects in southeastern Saskatchewan. A further five (3.1 net) wells targeting light oil are expected to be drilled during the balance of this year.

Briefs courtesy Nickleâ&#x20AC;&#x2122;s Daily Oil Bulletin

(QHUJ\ (DVW PD\ ZHOO EH ´3ODQ $Âľ Â&#x201E; By Brian Zinchuk Estevan â&#x20AC;&#x201C; Premier Brad Wall is starting to express doubt about the prospects of TransCanadaâ&#x20AC;&#x2122;s Keystone XL pipeline.

Speaking to reporters on Aug. 29 following a tour of SaskPowerâ&#x20AC;&#x2122;s Boundary Dam Carbon Capture Project with North Dakota Senator Heidi Heitkamp (D), he noted TransCanadaâ&#x20AC;&#x2122;s newly proposed Energy East pipeline may very well become â&#x20AC;&#x153;Plan A.â&#x20AC;?

Asked if he had any concerns that Keystone would be further delayed, Wall said, â&#x20AC;&#x153;Sure we have concerns. Weâ&#x20AC;&#x2122;re on record as strong supporters of the pipeline. We were in Washington.

We met with Democrats and Republicans, senior decision makers. We were actually talking about this project, Boundary Dam, and what weâ&#x20AC;&#x2122;re doing in terms of carbon capture in Saskatchewan. We were also there to promote Keystone. We wonâ&#x20AC;&#x2122;t have any oil in the pipeline necessarily when itâ&#x20AC;&#x2122;s built, if itâ&#x20AC;&#x2122;s built. But itâ&#x20AC;&#x2122;s important, because even though the gap between Brent and West Texas has shrunk, itâ&#x20AC;&#x2122;s still there, and the gap could cost us up to $300 million a year. â&#x20AC;&#x153;We just got to get more Canadian oil to tidewater. â&#x20AC;&#x153;For all the reasons weâ&#x20AC;&#x2122;ve said â&#x20AC;&#x201C; it makes sense for North America from an energy security standpoint, from an economic standpoint, from an environmental standpoint, when you consider the environmental record of Canada versus other countries the U.S. would import oil from, on CO2. â&#x20AC;&#x153;So it is a bit of a concern. It remains to be seen. If itâ&#x20AC;&#x2122;s next year, we hope the decision is positive.â&#x20AC;?

As for American opposition, he said, â&#x20AC;&#x153;Thatâ&#x20AC;&#x2122;s part of the concern, sure. Iâ&#x20AC;&#x2122;ve seen some of the ads. Theyâ&#x20AC;&#x2122;re just silly. They really are, and theyâ&#x20AC;&#x2122;re not based on fact. I guess thatâ&#x20AC;&#x2122;s what counts for advocacy these days perhaps with some of groups that have the money to by the things. Again, theyâ&#x20AC;&#x2122;re not factual, and I hope

they donâ&#x20AC;&#x2122;t unduly influence people who then influence the decision makers to work against Keystone. â&#x20AC;&#x153;In Canada, we have to start acting like an energy power.

We are one. And that means we have to move energy across the county. The answer for anybody in any part of the country to â&#x20AC;&#x2DC;does this benefit us?â&#x20AC;&#x2122; â&#x20AC;&#x2DC;Is it makes Canada stronger.â&#x20AC;&#x2122; â&#x20AC;&#x153;Whatâ&#x20AC;&#x2122;s good for the Western Canadian economy is good for the Canadian economy and therefore good for the economy in other regions. It is by definition, a country that depends on transfers from the federal government to transfers to the regions. In that kind of a country, what strengthens one region is helpful. â&#x20AC;&#x153;I hope the rest of Canada is as proud as we are. We are an energy power in the world, not just one that has oil for sale but one that is spending a lot of public dollars to reduce CO2, to deal with the environmental impact of energy extraction, moreso on a per capita basis, than any other country thatâ&#x20AC;&#x2122;s an energy power. Thatâ&#x20AC;&#x2122;s something we should be proud of. We should be motivated to do better, and we will be. Thatâ&#x20AC;&#x2122;s the case in Ontario and the rest of Canada.

Asked if Energy East is Plan B, Wall responded, â&#x20AC;&#x153;I think itâ&#x20AC;&#x2122;s increasingly Plan A, only because we see some of the comments from the president in the New York Times disputing what we think are some pretty factual impact numbers for Keystone. We see word of a new delay on approval. The optimism barometer is on an ebb right now in terms of Keystone approval in terms of Keystone approval, for our administration, for us. And (Northern) Gateway, I donâ&#x20AC;&#x2122;t see a way to seeing that approved. Energy East, I think, is Plan A, especially for the province, because that pipeline will have Bakken oil, will have Saskatchewan oil, in it. ɸ Page A9

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dŚĞ ƉƌŽƉŽƐĞĚ dƌĂŶƐ ĂŶĂĚĂ ŶĞƌŐLJ ĂƐƚ ƉŝƉĞůŝŶĞ ŝŶĐůƵĚĞƐ ƉůĂŶƐ ƚŽ ĐŽŶŶĞĐƚ Ă ϭϲ ŝŶĐŚ ƉŝƉĞůŝŶĞ ďĞƚǁĞĞŶ ŝƚƐ ŽǁŶ ƉůĂŶŶĞĚ DŽŽƐŽŵŝŶ ƚĞƌŵŝŶĂů ĂŶĚ ŶďƌŝĚŐĞ͛Ɛ ĞdžŝƐƟŶŐ ƌŽŵĞƌ ƚĞƌŵŝŶĂů ƐĞĞŶ ŚĞƌĞ͘ zŽƵ ƌĞĂĚ ƚŚĂƚ ƌŝŐŚƚ ʹ ŶĞƌŐLJ ĂƐƚ ŝƐ ĞdžƉĞĐƚĞĚ ƚŽ ĚƌĂǁ ^ĂƐŬĂƚĐŚĞǁĂŶ Žŝů ŝŶƚŽ ŝƚƐ ƐLJƐƚĞŵ ǀŝĂ ŝƚƐ ĐŽŵƉĞƟƚŽƌ͛Ɛ ƚĞƌŵŝŶĂů ĂŶĚ ŐĂƚŚĞƌŝŶŐ ƐLJƐƚĞŵ͘

By Brian Zinchuk It hasn’t received a lot of fanfare, but TransCanada is planning an oil terminal near Moosomin as part of its $12 billion Energy East proposal. You might notice is as the unlabelled terminal on the map TransCanada has put out for public consumption. It is the most significant portion of this pipeline project in Saskatchewan.

Energy East is similar in concept to the original Keystone pipeline. The company intended on taking an existing underused natural gas pipeline to oil service. The original Keystone pipe took a 20-inch pipeline, actually TransCanada’s original pipeline built in the 1950s. The Energy East pipeline is a 42inch line, built in the late 1990s. It is larger than the 36-inch pipe planed for Keystone XL project.

Pipeline News asked TransCanada for specifics regarding this blip on the map. Grady Semmens, senior communications specialist for TransCanada, responded via e-mail on Aug. 21.

Pipeline News: Where will the Saskatchewan terminal be built (i.e. near Moosomin)?

TransCanada: The terminal will be built approximately 10 kilometres northeast of Moosomin.

P.N.: How will local oil from southeast Saskatchewan and southwest Manitoba get into the Moosomin terminal to join Energy East? Will it be by pipe, rail and/or truck?

TransCanada: It will arrive at the terminal by pipeline.

P.N.: Enbridge has 357 kilometres of trunk line in its Westspur system, plus hundreds of kilometres of gathering line connected via several smaller terminals to its Cromer, Manitoba terminal. Will TransCanada be building a similar network of gathering lines, terminals and a trunk line connecting to the Moosomin terminal? Or will all of your gathering system in the region be done via the Enbridge system?

TransCanada: TransCanada plans to build approximately 60 kilometres of pipeline from Cromer, Manitoba to the tank terminal near Moosomin. Additional facilities may be built to meet future market needs. ɸ Page A10

Marquee Energy Ltd. turned a loss to a profit and doubled its cash flow in the second quarter, but reported lower production as it didn’t drill any wells during the period.

During the quarter the company increased its field operating netbacks to $33.49 per boe from $24.47 in the first quarter of 2013 and $19.34 in the second quarter of 2012. This was a direct result of the company’s growth in oil and liquids weighting.

The company spud the first well of a planned sixwell drilling program at Michichi on July 4, and expects to drill three wells at Lloydminster in the second half of 2013.

At Michichi in the second quarter, the last of the horizontal wells drilled in the first quarter was put on production in April subject to production optimization.

Michichi production averaged 1,026 boepd in the second quarter, a nine per cent increase over the first quarter of 2013, and a 78 per cent increase over the same period in 2012.

At Lloydminster, production averaged 534 bpd in the second quarter, flat compared to 533 bpd in the first quarter of 2013. Based on field estimates, current production from the area continues to exceed 500 bpd, highlighting the property’s low decline. The last new well was brought on production in December 2012.

Briefs courtesy Nickle’s Daily Oil Bulletin

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0LVVLRQ 6WDWHPHQW 3LSHOLQH 1HZV¶ PLVVLRQ LV WR LOOXPLQDWH LPSRUWDQFH RI 6DVNDWFKHZDQ RLO DV DQ LQWHJUDO SDUW RI WKH SURYLQFH¶V VHQVH RI FRPPXQLW\ DQG WR VKRZ WKH JHQHUDO SXEOLF WKH VWUHQJWK DQG FKDUDFWHU RI WKH LQGXVWU\¶V SHRSOH Publisher: Brant Kersey - Estevan Ph: 1.306.634.2654 Editorial Contributions: SOUTHEAST Brian Zinchuk - Estevan 1.306.461.5599 SOUTHWEST Swift Current 1.306.461.5599 NORTHWEST Geoff Lee - Lloydminster 1.780.875.5865 Associate Advertising Consultants: SOUTHEAST & NORTHWEST • Estevan 1.306.634.2654 Cindy Beaulieu Candace Wheeler Kristen O’Handley Deanna Tarnes Teresa Hrywkiw • Carlyle 1.306.453.2525 Alison Dunning CENTRAL Al Guthro 1.306.715.5078 al@prairieng.com SOUTHWEST • Swift Current 1.306.773.8260 Stacey Powell MANITOBA • Virden - Dianne Hanson 1.204.748.3931 • Estevan - Cindy Beaulieu 1.306.634.2654 CONTRIBUTORS • Estevan - Nadine Elson • Saskatoon - Josh Schaefer • Virden - Harley McCormick To submit a stories or ideas: Pipelines News is always looking for stories or ideas from our readers. To contribute please contact your local contributing reporter.

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:KHQ ZLOO ZHOOV EH DV VPDUW DV 6PDUWSKRQHV" It wasn’t that long ago that a farmer might tell his son this before sending him out on the Versatile four wheel drive tractor: “Son, overlap that 40 foot cultivator by five feet.

It’s better to overlap than miss. Whatever you do, don’t miss, because I don’t want long strips of weeds in my field.”

This was back in the day when the driver actually had to drive the tractor, not just turn it around at the end of the field and read his iPad in the meantime as the tractor’s GPS guidance autosteers it. Today, you might be pulling a 90-foot airseeder with accuracy measured in just a few inches of overlap. While the tractor’s guidance system is using the same technology as smart bombs, the equipment behind you is varying its rate of application of fertilizer according to unmanned aerial vehicle imagery and yield reports taken by the combine last fall.

Overlapping one-eighth of the implement (and losing 12.5 per cent efficiency as a result) and applying product at the same constant rate seems so 1980s.

Yet that’s what we found in our investigation of oilfield instrumentation and automation this month.

One automation provider told us that about 10 per cent of southeast Saskatchewan wells have automation installed, yet 75 per cent could benefit from it.

Such a low penetration of technology on the production side seems odd in an industry that will spends millions on drilling horizontal wells into zones just a metre or two thick, then filling them with expensive string-of-jewels completion hardware.

Let’s look at smartphones, shall we? Ten years ago, only a few people had smartphones, maybe 10 per cent (sound familiar?). They were the cutting edge, but really did you need a Blackberry or Palm Treo? Besides, your most recent Motorola came with

a 0.3 megapixel camera in it! What more do you need?

Now look around in public and count how many phones you see that are not smartphones. One? Two? All those smartphones still do the same basic job as dumb phones – make phone calls, but they can do so much more.

You probably didn’t know you needed a smartphone until you held one in your hand.

So too, it is with well and battery automation.

The lowest levels of automation are like those feature phones with a camera. They might send out a simple signal that says the tank is full, but that’s it. More advanced technology, like our smartphone, lets you do something about it. It may show various tank levels, and provide the opportunity to start and stop the pumpjack. It might have an automated vapour recovery unit that engages as needed, sending H2S to the flare stack. Online pump cards may indicate all sorts of issues in well optimization, and adjustments can be made from a laptop.

Instead, the vast majority of wells aren’t the smartphone, or even the camera phone. They’re not even wired land lines. The reality is these wells are closer to smoke signals, figuratively and literally. If you want to know what’s going on with them, you have to drive up and take a look. Hopefully it’s not overflowing the tank or smoking from a slipping belt.

In farming, you still cover the same field, whether you use precision farming techniques that use GPS tracking for combines, sprayers and tractors, or simply drive back and forth with an old fashioned tractor.

Either way, the job gets done. But the new techniques allow the farmer to squeeze a few percentage points of efficiency out of multi-million dollar operations.

Eventually the oilfield will catch up in terms of automation of production. The question is when?

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6RPH KHDG VFUDWFKHUV DERXW (QHUJ\ (DVW I was pretty excited to hear about TransCanada’s Energy East Pipeline announced this summer. It turns out I actually worked on that pipeline around 1996 or so when it was originally installed as a natural gas line, part of the TransCanada mainline.

Once you’ve worked with 42-inch pipe like that, everything else seems rather small. I personally spent a bit of time as an oiler on an excavator on that project, then as a farm tractor operator on the cleanup crew. I think I only broke my rock rake once.

The work, as it turns out, was in the Moosomin area, right up to the Moosomin compressor station northeast of town, precisely where a little blip on a map is expected to materialize.

That blip didn’t even get a label on the map TransCanada put out for publication regarding the project. But I sure noticed it, and its position on the mainline just west of the Saskatchewan/Manitoba border. There’s only one place that could be – Moosomin.

I sent a pile of questions to TransCanada, the type of questions most reporters would never consider.

To my surprise, TransCanada was quite forthright and prompt in their response. But the answers have left a lot more questions in my mind.

Premier Brad Wall noted that there’s little chance Saskatchewan oil will find its way into the proposed Keytone XL or Northern Gateway pipelines. But it IS expected that Energy East will take Saskatchewan oil, picking it up at the Moosomin terminal. The big question is how are they going to get oil into this

terminal?

I asked this of TransCanada – would they build a crude-by-rail terminal, since Moosomin is on the Canadian Pacific mainline? Would they have a truck terminal? Will they build a gathering system similar to Enbridge’s very extensive one throughout southern Saskatchewan? No, no and no.

TransCanada’s Moosomin terminal is expected to be fed oil via pipeline – a 16-inch pipeline, 60 kilometre long line, from Cromer, Manitoba. That’s the location of Enbridge’s mainline terminal, within spitting distance of the Saskatchewan border. It has a collection of very large tanks and manifolds. That’s where the Westspur pipeline terminates – the line that up until the recent advent of crude-by-rail, was essentially the only outlet for southeast Saskatchewan-produced oil. It’s also the end of the line for the pipeline built recently from Waskada, Manitoba. The Enbridge Bakken Expansion pipeline, which went into service in early 2013, brings North Dakota oil into Cromer, where it joins the Enbridge’s mainline, only to be shipped south across the border again (which, believe it or not, does make sense).

Tundra Oil and Gas, Manitoba’s largest producer, has a connected terminal just across the highway from the Enbridge site that has seen a massive expansion of late. There are also plans for construction of a Tundra crude-by-rail facility at Cromer.

This is where it gets interesting. The Westspur line is 16 inches. The planned line from Cromer to Moosomin is 16 inches. How much you can put

through either line is a function of what is flowing through it and how big your pumping capacity is.

Presumably, both 16-inch lines can handle the same amount of oil.

That means TransCanada is angling to have the capacity to ship pretty much all the oil produced out of southeast Saskatchewan that is currently gathered by the Enbridge Westspur system. And that is damned odd.

That’s like Canadian National gathering all the grain on the Prairies, taking it to Calgary, only to have Canadian Pacific say, “Whoa, there boy! We’ll take it from here down to Vancouver. But thanks for doing the dirty work, eh? We know you intended on shipping it on your own mainline, but hey, dem’s da breaks.”

As indicated by the recently announced, and then dropped, $4.6 billion lawsuit in Ontario between Enbridge and TransCanada, I am guessing there’s not a lot of love lost between the two companies.

Presumably it is the oil companies’ oil, and they can choose whichever method they want to ship it.

But I can’t fathom Enbridge doing all the gathering of oil, only to hand it over to their most significant competitor. Maybe this makes sense somewhere, but where that is, I don’t know.

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

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6PDOO WRZQ GUHDPV FRPH LQ QHZV UHOHDVHV If you wait long enough something good or something big might happen to transform your small hometown in Saskatchewan.

The town of Kerrobert, the village of Jansen and the town of Moosomin are some of the latest small communities to hit the economic jackpot with major investment news.

BHP Billiton is investing $2.6 billion to complete preparations for the Jansen potash mine that could produce 10 million tonnes of potash a year for more than 50 years.

Potash Corp., which Australian owned BHP Billiton wanted to buy in 2010, operates the Lanigan mine 36 kilometres west of Jansen and employs nearly 600 workers from the surrounding area.

The added investment by BHP Billiton will help young people stay in Jansen and attract new investments and residents to seek their fortunes.

Jansen’s to do list will likely include developing its infrastructure and providing a variety of housing, commercial and retail subdivisions and services that people expect.

Kerrobert’s windfall came with the announcement that TORQ Transloading Inc. will spend $100 million to build one of the largest crude-byrail transloading facilities in Western Canada.

TORQ’s arrival follows the set-up of a smaller transloading facility near the downtown by Arrow

Reload Systems earlier this year and puts Kerrobert squarely on the oil and gas transportation map.

Opportunity for investors knocks in Kerrobert, a town that is sorely lacking in rental housing and available hotel and motel space as well as major retailers.

Kerrobert has positioned itself as a good place to live and work with the ongoing construction of a $23 million hospital.

The small town of Moosomin is also poised to benefit from TransCanada Corporation’s proposed Energy East pipeline and plans for a new oil terminal in the Moosomin area.

TransCanada plans on adding a pumping station to its existing Moosomin compressor station. It would help feed oil produced from the Bakken play to the TransCanada system.

Getting Bakken oil to Energy East would involve building a new pipeline from Cromer Manitoba to the Moosomin terminal, and a tank farm to store oil.

The Town of Moosomin recently sold 10 of its 80 by 100-foot lots by auction for prices raning from $40,000 to $44,000 – bargain prices not likely to be repeated again given what’s coming their way.

Moosomin in also located on the main Canadian Pacific Railway line should anyone decide to build a transloading facility there.

TORQ, Altex Energy and Savage have set up crude oil transloading facilities in the small town

of Unity, generating lots of high paying jobs and a broader tax base.

TORQ, in fact, just announced an expansion of their Unity facility to handle 120-car unit trains on CP and CN lines as well as to provide oil storage.

The oil and gas industry and potash mining, are helping make many small town dreams a reality in Saskatchewan along with other unexpected sources of investment in renewal energy.

It wasn’t too many years ago when wind was just considered a nuisance at best, but now it is a sought after resource for wind farms popping throughout rural Saskatchewan and diversifying the economy.

The winds of economic change could also bring anything, ranging from new oil and gas exploration and production and service companies to small towns which will help connect families to their rural roots.

Moving to the big city for a job will no longer be the only option for young people who grow up in small towns, or for those who left and want to come home.

Small town Saskatchewan is definitely being re-energized by the energy and mining sectors, with new large scale investment news being the norm rather than the exception.

If only someone could find an economic use for snow, then living anywhere in Saskatchewan would be a dream come true and front page news.

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Éş Page A3 Heitkamp replied, â&#x20AC;&#x153;Today the EERC (Energy and Environment Research Centre) facility at UND (University of North Dakota) is studying the technology regarding enhanced oil recovery in oil shale plays. We know that it works in traditional drilling, and thatâ&#x20AC;&#x2122;s what weâ&#x20AC;&#x2122;ve been doing in the Weyburn field. â&#x20AC;&#x153;We think eventually the next step in enhanced oil recovery in oil shale plays is going to be CO2 injection, but thatâ&#x20AC;&#x2122;s not something thatâ&#x20AC;&#x2122;s talked about right now, because weâ&#x20AC;&#x2122;re in a production phase of developing those resources. Once we start seeing the decline curves on wells recently drilled, I think weâ&#x20AC;&#x2122;re going to start seeing people looking for enhanced oil recovery. Andyâ&#x20AC;&#x2122;s talking to them every day and every week about what we might be able to supply out of Basin Electric.â&#x20AC;?

While wind power has often been suggested as the energy of the future, Heitkamp noted, â&#x20AC;&#x153;We export about 70 per cent of what we generate, a lot into Minnesota. But North Dakota, South Dakota and Minnesota, interesting little fact, have these highest percentage in their mix of wind. You wouldnâ&#x20AC;&#x2122;t think that, would you? Basin Electric is again leading the way in wind generation in our mix, but we know, because weâ&#x20AC;&#x2122;ve done wind for a lot of years, is that is not the way to build baseload power. Itâ&#x20AC;&#x2122;s too intermittent. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;ve got to look at a reliable fuel source.

Right now, the most reliable, predictable fuel source is coal.â&#x20AC;?

While Basin Electric has long been capturing carbon dioxide with its Dakota Gasification Great Plains Synfuels Plant at Beulah, North Dakota, it is a different process that what SaskPower is using.

Specifically, it is not post-combustion.

Asked if Basin Electric is looking to partner with SaskPower in regards to using the post-combustion technology and application at Boundary Dam, Serri said, â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re excited. In fact, I extended an invitation to the SaskPower folks to come down to the Beulah facility. I tell you, pulling up to this facility was like coming home. We saw the drag-

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2QH :RPDQ¡V 3HUVSHFWLYH RQ /LIH /LEHUW\ DQG WKH 3XUVXLW RI /DQG /RFDWLRQV %\ 1DGLQH (OVRQ My son and I sat and listened to the instructions.

We were in the pre-op appointment for my sonâ&#x20AC;&#x2122;s major maxillofacial surgery (jaw surgery) to be performed in six days. It was the last stretch of the orthodontic journey we had started three years earlier.

Afterwards, the dental nurse handed us a three page handout. She again emphasized the importance of fluids in recovery. â&#x20AC;&#x153;It is very important to drink lots of water in the days after surgery,â&#x20AC;? she told us, â&#x20AC;&#x153;to avoid dehydration and help the body heal.â&#x20AC;?

As if to underscore the importance of her words, I turned to Page 2 of the handout where in block letters were the instructions: DO DRINK LOTS OF FLUIDS. The handout recommended drinking 2-3 liters of fluids per day but absolutely no pop or ice tea as the sugar content impeded healing. Water is the key ingredient in managing post-operative care I learned.

She was preaching to the choir. I had known the importance of adequate fluid intake for a long while.

Our bodies are composed of about 60 per cent water, and water is necessary for most of the bodyâ&#x20AC;&#x2122;s business.

´:KHQ , WDON DERXW FOHDQ FRDO DQG ZKHQ , WDON DERXW FDUERQ FDSWXUH RQ WKH à RRU RI WKH 8QLWHG 6WDWHV 6HQDWH , ZDQW WR VD\ œ,¡YH EHHQ WKHUH ,W ZRUNV LW¡V JRLQJ WR ZRUN ZH¡UH OHDGLQJ WKH ZD\ LQ PDNLQJ WKH LQYHVWPHQWV WR FRQWLQXH WR XVH FRDO LQ RXU HQHUJ\ PL[ ¡¾ 8 6 6HQDWRU +HLGL +HLWNDPS lines, we saw the haul trucks, we saw the stacks.

We are excited to see what the SaskPower folks are doing. â&#x20AC;&#x153;You know, weâ&#x20AC;&#x2122;re so blessed with the amounts of energy and different types of energy that we have. Not just the oil â&#x20AC;&#x201C; everyoneâ&#x20AC;&#x2122;s talking about the oil. Just as the senator said, 60 per cent of Basinâ&#x20AC;&#x2122;s power comes from baseload coal. It is the backbone of our fleet, and Iâ&#x20AC;&#x2122;m sure it is for the SaskPower folks as well. We have over 700 megawatts of installed wind capacity on our system. We have natural gas units as well. Weâ&#x20AC;&#x2122;re always willing to work with our neighbours to the north, because it truly is like coming home when you see those large booms of the draglines and the haul trucks. â&#x20AC;&#x153;You cannot throw one energy source under the bus. We need them all. Iâ&#x20AC;&#x2122;ve heard the senator say we need a comprehensive energy policy. I think itâ&#x20AC;&#x2122;s what, three, four, maybe five per cent of the oil per cent of the oil that theyâ&#x20AC;&#x2122;re pulling up with the technology right now. By using enhanced oil

recovery techniques, you can raise those volumes up considerably. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re excited. We want to see this rascal run. â&#x20AC;&#x153;Right now weâ&#x20AC;&#x2122;re just sharing ideas, visiting, talking, looking.â&#x20AC;?

Wall picked up on that, saying, â&#x20AC;&#x153;This rascal has required a bit of investment. SaskPower is doing a great job of trying to explore what commercialization opportunities are available. We think there are some, and I donâ&#x20AC;&#x2122;t want to be mysterious, but I think youâ&#x20AC;&#x2122;re going to hear some pretty interesting announcements in the near future about others that are really interested in being a meaningful partner in the new technology thatâ&#x20AC;&#x2122;s here.â&#x20AC;?

Heitkamp added, â&#x20AC;&#x153;I think we need to think about this whole issue globally. North America hasnâ&#x20AC;&#x2122;t been the largest contributor to the big increases in carbon. Itâ&#x20AC;&#x2122;s been Asia. The more we can develop the technologies here, the more we can prove these technologies here, the better itâ&#x20AC;&#x2122;s going to be for the overall global concerns about carbon.â&#x20AC;?

Serri noted Basin Electric has been capturing carbon since October 2000, and just hit a milestone of its 25-millionth ton through the pipeline to Weyburn. He said, â&#x20AC;&#x153;When you think of the expansion of the oilfields, you tell me how big the oilfields will be, and Iâ&#x20AC;&#x2122;ll tell you how much carbon we can use. Right now, thereâ&#x20AC;&#x2122;s no cap on those fields, not only here in Canada, but the U.S. as well.â&#x20AC;?

When asked if Basinâ&#x20AC;&#x2122;s primary consideration is to address environmental regulations or to supply carbon dioxide for enhanced oil recovery, Serri said, â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s both. You canâ&#x20AC;&#x2122;t have one without the other.

Our primary goal at Basin is to serve our member owners. Our member owners had the foresight to invest to develop the gasification facility. Right next to the gasification facility, just like you have here, is a large baseload power station, the Antelope Valley Station. They work in tandem. They really benefit.

Thereâ&#x20AC;&#x2122;s synergies from those stations, just as youâ&#x20AC;&#x2122;ll realize here at Boundary Dam. Our primary concern is not only being a good steward to the land, the air and the water, but also to our members as well.â&#x20AC;?

7KH NH\ LQJUHGLHQW" :DWHU I knew that substituting water for high-calorie sugary drinks aids in weight loss, and helps achieve overall better nutrition and health in a number of ways including better regulation of blood sugar and quicker elimination through the gastrointestinal tract.

Water is easier on teeth as well, for those concerned about the effects of acid wear on tooth enamel, as I am.

I knew all this and more, including the fact that if we wait to feel thirst before we drink, we are already dehydrated. Dehydration is a headache trigger, up to 85 per cent of the time, and can contribute to â&#x20AC;&#x153;brain fog.â&#x20AC;? On Dr. Ozâ&#x20AC;&#x2122;s instructions 18 months earlier, I had started the new habit of waking up in the morning and drinking 16 ounces of water in the first fifteen minutes of wakefulness, even before my dearly beloved mug of coffee! And my water bottle went everywhere with me.

However, getting the water and other fluids into my son was simply easier said than done in the days immediately following the surgery. He was restricted to using an oversized syringe and flexible tube system to squeeze through the wired down jaw. The considerable swelling of his face and mouth further impeded the syringe.

On our post op trip to Regina to visit the surgeon six days after the surgery, we were delayed several times in traffic. We followed closely behind an oilfield water truck for a number of kilometers. It seemed appropriate after the six days of my monitoring the water intake of my son. â&#x20AC;&#x153;What do drilling rigs need water for?â&#x20AC;? my son mumbled, staring at the back of the water truck. I told him to Google it on his smart phone. â&#x20AC;&#x153;An oil well cannot be drilled without it,â&#x20AC;? he

mumbled as he read. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s Step 5 on WikiHowâ&#x20AC;&#x2122;s 19Step â&#x20AC;&#x2DC;How to Drill an Oil Wellâ&#x20AC;&#x2122; site. If there is no natural source of water, a well must be dug.â&#x20AC;?

Despite the traffic, we made good time. We sat down to wait in the surgeonâ&#x20AC;&#x2122;s office and I opened the magazine. I smiled when the magazine fell open to â&#x20AC;&#x153;Water Use and Availabilityâ&#x20AC;?. It was an article form the Canadian Association of Petroleum Producers informing the reader that 75 per cent of Albertaâ&#x20AC;&#x2122;s oil production is water assisted. The article discussed responsible water use and improvements in water management for the oil industry. Water is the key ingredient in drilling operations, I learned.

So with all my preoccupation with water, I shouldnâ&#x20AC;&#x2122;t have been terribly surprised when I returned home to Estevan to turn on the television and see the massive flooding in Colorado. I learned that an entire yearâ&#x20AC;&#x2122;s moisture fell in a few days, resulting in widespread flooding. Officials are now concerned with the fact that a thousand gas wells were flooded in the northeastern corner of the state and the resulting contamination of groundwater. I felt compassion for those affected. I know the devastation first-hand from flooding in my own community.

Water. Itâ&#x20AC;&#x2122;s the key ingredient to drilling operations and to human life. And it can destroy both in mere minutes. Itâ&#x20AC;&#x2122;s something to consider, when taking your next drink of clean water.

Nadine lives in Estevan with her husband and family, and shifted gears a few years ago, becoming a hot shot driver for the oil patch. Her people skills are put to good use in the patch as she delivers the goods quickly and efficiently. Contact her at shifting.gears.hotshot@gmail.com with comments or questions.

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ɺ Page A4 “It’s a very important point. In all these other pipelines, we’ve been supportive of them, even though there’s not Saskatchewan oil in the pipeline. Again, we need to get Canadian oil to tidewater, to reduce the discount that occurs between Brent and West Texas, and in the longer term, to deal with pipeline capacity issues in North America that affect us. This one, Energy East, is even more important, because it does all of those other things in terms of oil to tidewater, but it’s our oil. We have capacity issues in southeast Saskatchewan. The highways and roads issues here are more acute than in anywhere else

in the province. Even though there’s other areas in the province that would dispute that, I think its safe to say because of pipeline capacity issues and more traffic on our highways in terms of the energy industry.

“We know the important of getting our oil to tidewater, plus there’s the terminal. That’s real investment. It’s a good project.

Regarding buy-in from his counterparts, Wall said, “I think the federal government is very supportive. I think the Prime Minister has said, look, whatever approvals have to happen, have to happen. These processes need to be addressed.

TCPL is going to have to do that work, and they will. Prime Minister has been pretty clear in his

support for moving Canadian oil to the coasts.”

Wall doesn’t know if there’s going to be more federal involvement in carbon capture, but Wall said, “We’re going to make the case.”

“In the new year, I’ll be happy to report to the prime minister this project worked. It came as we wanted it come in, and is successful. Especially with the sale of CO2, it might be a game changer the rest of the world is interested in. Witness the senator’s visit today and the fact Mr. Monea is again in China. SaskPower is back in China, talking to interests there about this technology and what we’re doing. I hope the Prime Minister will be interested in other projects. We’ll make the case and we’ll see what he says,” Wall said.

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7KUHH EEO WDQNV SODQQHG IRU 0RRVRPLQ WHUPLQDO Éş Page A5 P.N.: Will you have a truck terminal in Moosomin feeding this terminal? If so, have you factored in the impact this will have on Saskatchewan highways, such as Highway 8, south of Moosomin?

TransCanada: TransCanada is not planning to build a truck terminal at this time.

P.N.: Will it have crude-by-rail connections, as Moosomin is on the Canadian Pacific mainline? If not now, will it be built with crude-by-rail connectivity as a possible expansion?

TransCanada: No crude-by-rail connections are planned at this time. Any future facilities or provisions for such, should there be a market need for them, would be announced in due course.

P.N.: Will Energy East carry principally heavy oil, or light oil? Will it be a batched line, or a single product line?

TransCanada: Energy East will be a batch pipeline capable of transporting the full spectrum of crude types.

P.N.: How large will the facility be at Moosomin? Will this be built with expansion in mind?

TransCanada: The preliminary design, subject to change subject to technical and market considerations, is for three 350,000-barrel tanks.

P.N.: How many construction jobs will be involved with the terminal?

TransCanada: We will have a better sense of construction labour requirements for the terminal upon completion of front-end engineering and design in 2014, but for a terminal of this size, we

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would typically expect a peak construction labour requirement of 150 to 200 workers.

P.N.: Can you tell us about the preventative maintenance program (PMP, sometimes called dig-ups) that will be involved in converting an existing mainline gas line to oil service?

TransCanada: TransCanada has successfully converted a gas pipeline to oil service before as part of the Keystone pipeline that went into service in 2010 and has safely transported over 475 million barrels of oil since then. The conversion process requires complete inspection of the pipeline to be converted using an inline inspection tool capable of detecting minute anomalies anywhere along the pipe. Any anomalies detected will be inspected using investigative digs and repaired as necessary. P.N.: Which pipe will be used across Saskatchewan, and how large will it be? (i.e. 42-inch?)

With the addition of Saskatchewan oil, will you use a smaller pipe to Moosomin (i.e. 36-inch) and a larger pipe beyond Moosomin (i.e. 42-inch)?

TransCanada: The pipe across Saskatchewan that will be converted is a 42-inch pipe and the pipeline between Cromer and the Moosomin terminal will be a new 16-inch pipe.

P.N.: How many pumping stations will be built? Will these be co-located at existing compressor stations, or will you require greenfield construction? If you are building new pumping stations, where?

TransCanada: Approximately 70 pumping stations will be built between Hardisty and Saint John and will make use of land adjacent to existing compressor stations to the extent possible. The specific locations of pump stations is still being finalized subject to ongoing hydraulic analysis and land availability assessment.

P.N.: TransCanada has an enormous amount of 36-inch pipe sitting on the ground awaiting approval of the Keystone XL project. If that project does not go ahead, will TransCanada repurpose that pipe for construction of the new portions of Energy East?

TransCanada: The Keystone XL project is still undergoing regulatory review by the U.S. Department of State. Assuming a successful review, TransCanada is committed to completing the Keystone XL project which is underpinned by long-term commercial transportation contracts. The new portions of Energy East will not be using 36-inch pipe, so Keystone XL pipe would not be repurposed on the Energy East project.

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Â&#x201E; By Brian Zinchuk

to work building this pipeline. Also to meet the needs of a domestic energy supply, when I talk domestic, obviously Canada is our neighbour. We share a huge long border, never had a skirmish, We kind of consider Canadians like North Dakotans. Weâ&#x20AC;&#x2122;d love to see this pipeline built. Weâ&#x20AC;&#x2122;d love to see us working together, to promote North American energy independence,â&#x20AC;? Heitkamp said. â&#x20AC;&#x153;Nebraska has given its approval now

for the change on the re-routing. There isnâ&#x20AC;&#x2122;t a

If it happens here, in Canada, with Keytone XL, itâ&#x20AC;&#x2122;s going to happen in the Lower 48. Itâ&#x20AC;&#x2122;s going to happen to us.

So instead of fighting about whether youâ&#x20AC;&#x2122;re going to produce oil from oil shale, youâ&#x20AC;&#x2122;re going to fight about where the pipeline goes. This is a concerted effort, it seems to me, to eliminate hydrocarbons are part of our future, and I think thatâ&#x20AC;&#x2122;s shortsighted. I think thatâ&#x20AC;&#x2122;s irresponsible. ɸ Page A12

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Estevan â&#x20AC;&#x201C; When recently elected U.S. senator for North Dakota Heidi Heitkamp took the nickle tour of the Boundary Dam Carbon Capture Project with Premier Brad Wall, she likely had more experience in the field than any other politician before or since when it comes to carbon capture. Thatâ&#x20AC;&#x2122;s because prior to her election as a senator, she was deeply involved with saving the Dakota Gasification plant in Beulah, N.D., back in the 1980s when it just about went belly up.

Dakota Gasification has been the source of carbon dioxide used in the Cenovus-operated Weyburn unit since that operation began injecting CO2 for enhanced oil recovery in 2000.

Even with the planned completion of the Boundary Dam project, Dakota Gasification will continue to supply the Weyburn Unit with carbon dioxide for many years to come.

As a director of Dakota Gasification, owned by Basin Electric, prior to her election to the Senate, Heitkamp is intimately familiar with the carbon capture and storage strategy, both for greenhouse gas reduction and for enhanced oil recovery.

Her questions during the tour were acutely

focused, and her statements afterwards were equally so.

Prior to coming to Estevan, Heitkamp visited the Fort McMurray oilsands as well as a TransCanada control centre. Speaking to reporters after the tour about the importance of the long-delayed Keystone XL pipeline project, Heitkamp said, â&#x20AC;&#x153;I think it was absolutely critical. I think the events of the last weeks in the Middle East, tells us once again, that North America is the key to our success.

Given the remoteness of the oilsands to markets, we absolutely need to see a rational transportation system. â&#x20AC;&#x153;I had a great opportunity to see the control room at TransCanada, talked about the safety precautions, talked about the need to move this oil. â&#x20AC;&#x153;I think thereâ&#x20AC;&#x2122;s a whole lot of ideas that what goes into this pipeline is gooey, goppy, kind of (like) asphalt, and itâ&#x20AC;&#x2122;s not. Itâ&#x20AC;&#x2122;s a lot like North Dakota Bakken.

If we can continue to have the discussion, if we can continue to do what we need to do to move that pipeline along, thatâ&#x20AC;&#x2122;s the whole purpose of going up there. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s incredibly frustrating, not only for TransCanada, but a lot of American workers who want to get put

)25 5(17

state thatâ&#x20AC;&#x2122;s holding this up. Itâ&#x20AC;&#x2122;s just that distance taking that pipe across the border.

As for the importance of Keystone XL in taking North Dakota Bakken production, she said, â&#x20AC;&#x153;I think youâ&#x20AC;&#x2122;re going to see some North Dakota Bakken in that pipeline. For me, the reason why I consider that pipeline critical is using the transportation system as a method to criticize the development of a fuel source is what theyâ&#x20AC;&#x2122;re doing.

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Éş Page A11 â&#x20AC;&#x153;Fifteen per cent of Bakken crude could move on Keystone XL. Whether that happens, it will just depend. The bottom line is this is North American oil.

Letâ&#x20AC;&#x2122;s get it to market. Letâ&#x20AC;&#x2122;s get it to the refineries, and letâ&#x20AC;&#x2122;s not be dependent on foreign-sources oil.â&#x20AC;?

North Dakota has been at the forefront of the shift to crude-by-rail in getting oil to market. â&#x20AC;&#x153;Just as I think itâ&#x20AC;&#x2122;s important to have diversity in the fuel mix, I think itâ&#x20AC;&#x2122;s important to have diversity in the transportation mix. The mix needs to be diverse. Can we move every barrel of oil that we produce in Alberta and North Dakota, the two fastest-growing economies in the world, can we move every barrel by train, by rail? The answer is no. We need pipelines, we need diversity. â&#x20AC;&#x153;In North Dakota, one thing that having the rail opportunity has done is diversified our market, and thatâ&#x20AC;&#x2122;s very positive for reducing the price spread on our crude. Weâ&#x20AC;&#x2122;re grateful for what Burlington Northern had done and Canadian Pacific has done, but itâ&#x20AC;&#x2122;s not the sole answer to moving crude,â&#x20AC;? Heitkamp concluded.

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By Brian Zinchuk Calgary – A series of “coffee talk” open houses was held by Enbridge in late August and early September to inform local landowners about a significant project planned for its mainline.

The open houses were held at Vibank on Aug. 28, Maryfield on Aug. 29, Souris, Man. on Sept 4 and Morden, Man. on Sept. 5. Enbridge’s manager, stakeholder relations, Amber Pastoor said, “As part of Enbridge’s consultation program for the Line 3 segment replacement program, we hosted coffee talks along the mainline. Coffee talks are an opportunity for landowners and interested stakeholders to share their thoughts, ask questions and speak with Enbridge team members.”

The proposed project will replace segments of pipeline throughout Saskatchewan and Manitoba. Seven segments of 34-inch pipe are scheduled to be decommissioned and replaced with new 36-inch pipe. The reason behind the shift in size is that 36-inch pipe is commonly milled at plants and has become standard in industry. 34-inch pipe would have to be specially ordered resulting in having to also special order valves, meters and other facilities. Pastoor stated, “This project is in the early planning stages, and changes are not just possible, but likely. We will continue to consult with stakeholders and keep them informed regardless of what the project may finally look like.”

The segments vary in length from 18 kilometres east of Enbridge’s Cromer, Man. terminal to 290 kilometres (numbers approximate) from Regina to Cromer. The Cromer-east section is the first up to bat, planned for late 2014.

Also in late 2014, Phase II would see two segments in the Elbow, Sask. area as well as one near Wawanesa, Man., done. Then in 2015-2016, the bulk of the work would be completed. Phase III would see 51 kilometres done near Souris, Man., 57 kilometres near Morden, Man., and the long 290 kilometre southeast Saskatchewan stretch done.

The total is approximately 516 kilometres of pipeline decommissioning and replacement.

Line 3 currently carries light synthetic, sweet, light sour and high sour crude oil, and has an operating capacity of 390,000 barrels of oil per day due to pressure restrictions. ɸ Page A14

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(QEULGJH /LQH UHSODFHPHQW FRPLQJ VRRQ Éş Page A13 Up to seven different pipelines are currently located within the Enbridge pipeline corridor; the existing Line 3 pipeline lies the second pipeline from the north boundary for the majority of the corridor. The construction right-of-way for the Line 3 segment replacement will typically be approximately 45 metres wide. This will include some areas of new permanent easement, temporary workspace (TWS) on the existing Enbridge Alberta Clipper (Line 67) right-ofway and the remaining TWS footprint from

adjacent landowners.

Additional TWS will be required at select locations to accommodate construction activities (e.g., road, rail, buried utility line and water crossings, sharp side bends, tie-ins and locations where extra depth pipe or grading is necessary). Enbridge will also acquire TWS for project construction needs such as shoo-flies, as well as material and equipment staging. â&#x20AC;&#x153;For the most part, Line 3 will parallel the Alberta Clipper route with a 10 metre offset between ditch lines.

There are areas of congestion, population, wet areas, and man-made

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and natural obstruction that could warrant re-routes to the Alberta Clipper routing,â&#x20AC;? said Sawatzky.

Consultation Pastoor explained that, â&#x20AC;&#x153;As part of Enbridgeâ&#x20AC;&#x2122;s consultation program for the Line 3 Segment Replacement Program, we hosted coffee talks along Enbridgeâ&#x20AC;&#x2122;s Mainline.

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members. Enbridge held nine coffee talks in communities in Alberta, Saskatchewan and Manitoba over the past two months. In total, over 100 landowners and interested stakeholders attended the events (in Saskatchewan, approximately 25 landowners and stakeholders attended the coffee talks. â&#x20AC;&#x153;The primary concern raised by landowners concerned was about the safety of decommissioning pipelines and about who is responsible for decommissioned lines.â&#x20AC;?

Pastoor confirmed that Enbridge is responsible for all its pipelines, whether or not those pipelines are active or decommissioned. â&#x20AC;&#x153;Enbridge will monitor the segments that are decommissioned in place in perpetuity, and will be responsible for any ongoing maintenance costs. Enbridge will ensure that the segments remain safe for both landowners and the environment.â&#x20AC;?

Pipeline decommissioning In its informational material, Enbridge noted the distinction between â&#x20AC;&#x153;abandonmentâ&#x20AC;? and â&#x20AC;&#x153;decommissioningâ&#x20AC;? made by the National Energy Board. The company noted, â&#x20AC;&#x153;Decommissioning refers to the permanent cessation of operation with no corresponding discontinuance of service to end users.

For example, decommissioning could be equated to a four lane highway between two cities. You may permanently close down one of the lanes but the remaining lanes remain open and allow cars to travel between the cities. Abandonment refers to the permanent cessation of operation with discontinuance of service to end users. In this case the operation of the pipeline permanently ceases and service comes to an end. In the example above abandonment would mean a closing down of all of the lanes of traffic.â&#x20AC;? ɸ Page A15

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707,305, 5,>: 6J[VILY of pipe from the 1950s of which only a small portion (20 miles) was coated with mummy wrap, another small portion (20 miles) with PE tape and the remainder of the line with coal tar enamel. The segment of Line 2 with mummy wrap is scheduled for replacement, similar to the segments on Line

3, while we continue to use traditional mitigation (sleeves) where needed on the PE tape segment.â&#x20AC;?

As for Line 4, Grams said â&#x20AC;&#x153;Line 4 is a combination of pipe materials from the 1970s to 2008 and utilizes both FBE and PE tape coatings. We continue to monitor Line

4 as per our integrity management program which incorporates susceptibility to external corrosion due to coating issues. Through our use of inline inspection tools we gather corrosion feature information on a regular basis and take appropriate action where needed.â&#x20AC;? said Grams.

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Éş Page A14 But why Line 3?

Enbridgeâ&#x20AC;&#x2122;s Line 1 went into services in 1950, and Line 2 went in several years later.

Line 3 was built in the late 1960s, yet it is the one being decommissioned and replaced, not the older Lines 1 and 2.

Why? Enbridge conducts ongoing integrity analysis of all of its pipelines in order to meet its commitment to operate safely. â&#x20AC;&#x153;Enbridgeâ&#x20AC;&#x2122;s top priority is the safe operation of its pipelines and is committed to the safety of landowners, employees, contractors and the neighbouring public. As such, in recent months, Enbridge conducted its

latest assessment of the maintenance program options for Line 3.

These assessments are part of Enbridgeâ&#x20AC;&#x2122;s comprehensive, system-wide preventative maintenance program. The analysis has indicated that certain segments are potential candidates for replacement with new pipe, since replacement can be a less intrusive and more cost effective option that the conventional integrity digs. We have identified seven segments of our Line 3 pipeline for potential replacement, subject to regulatory approvalsâ&#x20AC;? said Allen Sawatzky, construction manager.

Trevor Grams, director, infrastructure

::: .253$1 &20

integrity, explained that â&#x20AC;&#x153;Line 1 (Clearbrook to Superior) was constructed in 1950; however, it was coated with coal tar enamel which has proven to be a better coating than PE tape which was used on Line 3. Line 2 (Edmonton to Superior) is a combination

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3LSHOLQH GHFRPPLVVLRQLQJ VWHS E\ VWHS In general, the process of decommissioning a pipeline involves these steps: 1. Removing the oil from the pipeline segment by launching an internal device called a â&#x20AC;&#x2DC;pig.â&#x20AC;&#x2122; Using this method, the vast majority of the crude oil is removed from the pipeline segment.

2. Flushing the pipeline with cleaning agents and cleaning devices (scraper pig) to ensure the crude oil is completely removed.

3. Physically disconnecting the pipeline segment being replaced from any operating facilities.

4. Injecting inert material at certain locations as required.

5. Monitoring the decommissioned segment of pipe and maintaining the cathodic protection to prevent corrosion.

Courtesy Enbridge

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:DOO UHDFWV WR FUXGH E\ UDLO H[SDQVLRQ Â&#x201E; By Brian Zinchuk Estevan â&#x20AC;&#x201C; A flurry of announcements of new crude-by-rail facilities in Saskatchewan in recent months indicate a tremendous build-out of capacity is underway. As reported in last monthâ&#x20AC;&#x2122;s Pipeline News, if all these facilities are carried through to their full capacity, a year from now Saskatchewan will technically have the ability to ship every drop of oil it produces by rail, plus an additional Bakken boom.

Pipeline News asked Premier Brad Wall what he thought of this during a tour of the Boundary Dam Carbon Capture Project on Aug. 29.

Wall responded, â&#x20AC;&#x153;Well, the industry is the one making these investments. When I say the industry, I talk about the transportation industry, but also the pipeline companies. Iâ&#x20AC;&#x2122;m sure theyâ&#x20AC;&#x2122;ll make decisions for them that make sense in the long term on these capacity issues. From the governmentâ&#x20AC;&#x2122;s standpoint, our view is all of the above. Weâ&#x20AC;&#x2122;re going to see an expansion in oil production in years to come. I think thatâ&#x20AC;&#x2122;s fair to say, especially with prices pretty strong right now. In the long term, if thatâ&#x20AC;&#x2122;s the case, weâ&#x20AC;&#x2122;re going to need to move it. Weâ&#x20AC;&#x2122;re going to need rail, and weâ&#x20AC;&#x2122;re going to need pipes.â&#x20AC;?

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Stefan Klym C: 306.630.2240 E:sktrucks@sasktel.net

Adam Johnson C: 306.690.1710 E: sktrucksl@sasktel.net

Heath Greening C: 306.891.8389 E:heath.dragonnorth@sasktel.net

Micheal Klym C: 306.690.6031 E: michael.dragonnorth@sasktel.net

8 Minard Road Weyburn, SK S4H 2L5

Toll Free: 855.745.9564

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%RXQGDU\ 'DP &DUERQ &DSWXUH 3URMHFW FRPPLVVLRQLQJ XQGHUZD\ Â&#x201E; By Brian Zinchuk Estevan â&#x20AC;&#x201C; With the Boundary Dam Carbon Capture Project now in its commissioning phase, many of the workers on the project have gone home.

The workforce, which peaked around 1,500,

by Aug. 29 was down to 200 between three buildings involved in the project.

Ian Yeates, general manager for corporate planning for SaskPower, provided the technical briefing to Premier Brad Wall, North Dakota Senator Heidi

Heitkamp and Basin Electric Power Cooperative CEO Andrew Serri on Aug. 29 as part of a tour of the project.

Boundary Dam, he noted, is the first project in the world of commercial scale. â&#x20AC;&#x153;When SaskPower started doing this, we

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didnâ&#x20AC;&#x2122;t expect that would be the case,â&#x20AC;? Yeates said. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;ve got more experience on this than virtually any corner of the world.â&#x20AC;?

SaskPower also currently has a carbon capture test facility under construction at the Shand Power Station.

Thereâ&#x20AC;&#x2122;s a global challenge to meet growing demand for energy, he said. But standards in emissions have changed. â&#x20AC;&#x153;What was okay in the 1930s is not okay today,â&#x20AC;? Yeates said. â&#x20AC;&#x153;Something has to happen with CO2 emissions, and thatâ&#x20AC;&#x2122;s happening today. â&#x20AC;&#x153;We do not think itâ&#x20AC;&#x2122;s prudent to lose coal.

Itâ&#x20AC;&#x2122;s always there,â&#x20AC;? he said of power generation options, adding the coal supply â&#x20AC;&#x153;is measured in centuries.â&#x20AC;?

Comparing the cost of establishing natural gas-fired power plants and coal-fired plants,

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coal plants cost more to build but have much lower, and more stable fuel costs. Natural gas plants, on the other hand, are less expensive to build, but have higher, and more volatile, fuel costs. Yeates expects gas prices to rise to the $5 to $6 per gigajoule range, for instance.

Coal is used in Alberta, Saskatchewan, Ontario, New Bruns-

wick and Nova Scotia.

Ontario is in the process of shutting down 6,000 megawatts of coal generation. â&#x20AC;&#x153;They got rig of 20 per cent of their load. Itâ&#x20AC;&#x2122;s not the recipe to economic happiness,â&#x20AC;? Yeates noted.

He added Ontario hasnâ&#x20AC;&#x2122;t scrapped their coal-fired plants, they just shut the door, hinting the province may be hedging its bets. ɸ Page A19

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707,305, 5,>: 6J[VILY ɺ Page A18 SaskPower is seeing increasing demand for power, but supply is dropping. Boundary Dam Unit 1 has already shut down, and Unit 2 will shut down in 2015. While the carbon capture project has seen a rebuilt Unit 3, Units 4, 5 and 6 are in the queue for refurbishment in the coming years. A decision on those units will likely need to be made in 2015-2016, he noted.

“Does carbon capture and storage have a role in our future? Absolutely, it does,” Yeates said.

Greenfield projects, however, don’t seem to be in the cards. He noted that in 2006 SaskPower considered a greenfield clean coal project, and “the cost was horrifying.” But by 2009, the math came within the ballpark of a natural gas-fired plant with the additional revenue from ongoing sales of carbon dioxide for enhanced oil recovery.

Cenovus will be purchasing the CO2, with the pipeline between Boundary Dam

Power Station and the Weyburn Unit currently under construction.

SaskPower expects to have CO2 in the pipeline by April 1.

However, the backup plan is to pump carbon dioxide into the adjacent Aquistore injection well, drilled last year two kilometres east of the plant. It is intended to send compressed carbon dioxide into deep saline aquifers.

Aquistore is a research project, but also meant as an alternative destination for captured CO2 for times when Cenovus may not be able to accept CO2, i.e. during maintenance shutdowns.

SaskPower is currently considering taking over the Aquistore project wells from the Petroleum Technology Research Centre (PTRC), which drilled the injector and observation wells in 2012.

They are the two deepest wells in the province.

“This is a state of the art facility. It cleans up everything,” Yeates said.

He led off his presentation by noting that

air pollution in China “is stunning.”

Wall pointed out that Michael Monea, SaskPower president of carbon capture and storage initiatives, was in China at the time promoting the project.

While leading the tour, Mike Zeleny, SaskPower’s project manager for carbon capture transitions and operations, said the capture island was “over 98 per cent complete now,” with items like cabling outstanding at the time.

“It’s essentially virtually complete.”

The tour began where the large pipes connect the power station to the capture facility, and progressed from beginning to end of the capture process.

Highlights included the sulphur dioxide stripper, carbon dioxide stripper, and massive heat exchangers needed to cool the system.

The second building, to the south, included the large multi-stage compressor which will compress the carbon dioxide and send it down the pipeline to the

Cenovus Weyburn Unit.

Participants saw several areas on the carbon capture side where photographs weren’t allowed due to proprietary processes being used.

The amine storage tank had tens of thousands of tiles placed by hand lining it. “They’re manufacturing the amine for us already,” he said.

“There is a lot of engineering effort in this facility to minimize the parasytic load required by the project,” Zeleny

said, pointing to those large heat exchangers.

Parasytic loss is the amount of power used

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In temporary offices south of the new carbon capture plant, one finds three computer simulators with large banks of computer monitors. There are simulators for the acid plant, carbon capture plant, and Unit 3 generation plant.

The software integrates with the carbon capture plant. While leading a tour including Premier Brad Wall and U.S. Senator Heidi Heitkamp through the facility, Mike Zeleny, SaskPowerâ&#x20AC;&#x2122;s project manager for carbon capture transitions and operations said of the simulators, â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s a long overdue process, but I think it we be great for SaskPower.â&#x20AC;? â&#x20AC;&#x153;It is my intent, in working with Tim Shuster, (director of the Boundary Dam Power Station), that we are determined this will not be a flash-in-thepan training exercise. This is long overdue for SaskPower. Itâ&#x20AC;&#x2122;s an absolute must, in the light of the technology you see today. In the light of the cost of an outage, if you donâ&#x20AC;&#x2122;t have operators that are adequately trained, and know what to do in certain cases, and have the skills, the cost of an outage and equipment damage is astronomical.â&#x20AC;?

There are plans to set up a permanent simulator training process. â&#x20AC;&#x153;We lose people every month. New people come in. People retire, somebody leaves. You have to have the ability to maintain that training apparatus. This â&#x20AC;&#x2DC;follow Joe around stuff â&#x20AC;&#x2122; is no longer good enough,â&#x20AC;? Zeleny said.

Only Unit 3 has a simulator. They are going to look at using the equipment to train operators for other units. Thereâ&#x20AC;&#x2122;s a hang-up, however. â&#x20AC;&#x153;Theyâ&#x20AC;&#x2122;re all different. Thatâ&#x20AC;&#x2122;s the trouble. You build the unit, and lowest bidder gets it, as it should be, but this oneâ&#x20AC;&#x2122;s different than that one.â&#x20AC;?

Estevan MLA Doreen Eagles asked if there was any way that this training could be done with the Saskatchewan Energy Training Institute, which recently built a new campus in Estevan. â&#x20AC;&#x153;Iâ&#x20AC;&#x2122;ll never say never. Itâ&#x20AC;&#x2122;s not something Iâ&#x20AC;&#x2122;ve really thought about. Itâ&#x20AC;&#x2122;s an interesting concept. Maybe. Specialized skills, to set this up â&#x20AC;&#x201C; like Dwayne and Randy over there â&#x20AC;&#x201C; are 35 year operators. They know how this works. You need those kinds of skills. If that can be provided, maybe. I havenâ&#x20AC;&#x2122;t thought of that,â&#x20AC;? Zeleny responded. â&#x20AC;&#x153;Iâ&#x20AC;&#x2122;ve already lined up your next job,â&#x20AC;? Zeleny joked to one of the simulator operators, who was brought back from retirement to assist with the program.

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by Brian Zinchuk Estevan â&#x20AC;&#x201C; Instrumentation and automation are at the heart of the work done by Estevan Meter.

Since summer of :Ä&#x201A;Ć&#x152;Ć&#x152;Ä&#x201A;Ä&#x161; ^ĹŹĆľÄ?Ä&#x17E; Ĺ?Ć? ĹľÄ&#x201A;ĹśÄ&#x201A;Ĺ?Ä&#x17E;Ć&#x152; ŽĨ ÄŽÄ&#x17E;ĹŻÄ&#x161; Ć?Ä&#x17E;Ć&#x152;Ç&#x20AC;Ĺ?Ä?Ä&#x17E;Ć? Ç Ĺ?Ć&#x161;Ĺ&#x161; Ć?Ć&#x161;Ä&#x17E;Ç&#x20AC;Ä&#x201A;Ĺś DÄ&#x17E;Ć&#x161;Ä&#x17E;Ć&#x152;Í&#x2DC; Ä&#x17E;Ĺ&#x161;Ĺ?ĹśÄ&#x161; Ĺ&#x161;Ĺ?Ĺľ Ĺ?Ć? Ä&#x201A; Ç&#x20AC;Ä&#x201A;Ć&#x2030;ŽƾĆ&#x152; 2012, the company has Ć&#x152;Ä&#x17E;Ä?Ĺ˝Ç&#x20AC;Ä&#x17E;Ć&#x152;Ç&#x2021; ƾŜĹ?Ć&#x161; Ć&#x2030;Ä&#x201A;ĹśÄ&#x17E;ĹŻÍ&#x2DC;

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launched sister company Virden Meter in Virden, Man., and expanded its Estevan headquarters.

Jarrad Skuce, Estevan Meterâ&#x20AC;&#x2122;s manager of field services, and a partner in company, spoke with Pipeline News on some of its ventures.

One of the growing areas for the company is dealing with tank emissions using a vapour recovery unit, or VRU. As gas collects inside a tank, pressure sensors will activate a suction unit, either in an on/off format, or with variable speeds. â&#x20AC;&#x153;That pressure sensing will start or stop the VRU, and send it off to the flare. You donâ&#x20AC;&#x2122;t want hatches emitting gas â&#x20AC;&#x201C; itâ&#x20AC;&#x2122;s straight H2S coming off the top,â&#x20AC;? he said.

VRUs are used in battery installations. The set-up can be identified at a glance by a system of suction pipes, skinny pipes running along the top of the tanks.

As for what is driving VRU sales, Skuce said part of it is making sure there is no H2S at the battery, as well as the accompanying scent.

Itâ&#x20AC;&#x2122;s not just a smell, but a safety issue.

Itâ&#x20AC;&#x2122;s also being driven by drilling activity and recently implemented venting and flaring regulations.

Gas that was formerly vented is now being put out to flare. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;ll put on a web-based SCADA (supervisory control and data acquisition) system.

You can see if they need to speed up or slow down the

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VRU. Itâ&#x20AC;&#x2122;s like a blower/ compressor. â&#x20AC;&#x153;We can offer a whole package for the customer, from the controls to the VRU, to an engineered flare stack.â&#x20AC;?

Such a system will be custom tailored for the gas flow at that facility. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;ve worked on a lot of different styles of VRUs in the last three years. Weâ&#x20AC;&#x2122;ve started offering our own system,â&#x20AC;?

Skuce said, noting they have teamed up with suppliers to offer that solution. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s a growing part of the business, for sure,â&#x20AC;? he said. â&#x20AC;&#x153;We do all the controls â&#x20AC;&#x201C; pressure off the tank, high temperature shut-off on the blower, liquid level switch in the blower.

They also do the instrumentation on the suction pipe.

Depending on what the customer has and needs, Estevan Meter can either tie into their existing SCADA system or set one up.

This includes setting up a cellular- or satellitebased modem which is connected to a host system. The user can then go to a web-based system to access it. This can be done through a smartphone, tablet, or laptop.

Controls are done one site. â&#x20AC;&#x153;We can set it up to alarm,â&#x20AC;? Skuce said. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;ve done some around Oxbow, Alida, and Stoughton.â&#x20AC;?

Separators In addition to their VRU work, Estevan Meter also works on, well, meters. ɸ Page A23

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Éş Page A22 â&#x20AC;&#x153;We do a lot of test separator instrumentation and automation,â&#x20AC;?

Skuce said. â&#x20AC;&#x153;You can have electronic gas measurement. Theyâ&#x20AC;&#x2122;ll have two-phase or three-phase test separators.

Two-phase is gas and emulsion, while three-phase is gas, water and oil.

A meter comes off each phase.

Gas can be measured through electronic gas measurement, differential pressure transmitters, static pressure and gas temperature. Water is typically measured with a turbine meter, while oil will use a turbine meter or a Floco meter.

Cuts are determined by a sampling system. â&#x20AC;&#x153;We do a lot of commissioning of satellites,â&#x20AC;? Skuce said. Thatâ&#x20AC;&#x2122;s is a grouping of wells on a header system at a â&#x20AC;&#x153;test satellite,â&#x20AC;? which determines how much of what is flowing from each well. This is important not only to know how much oil and gas is being produced, but the amount of royalties should be paid to the mineral rights owners. That may be government or freehold. â&#x20AC;&#x153;There could be multiple partners.

You want everyone to get the correct compensation for what they own in that well,â&#x20AC;? he said.

For instance, if you have wells A,

B, C, D and E, Joe may own 30 per cent of the mineral rights on well C, with Sue owning the remaining 70 per cent. On the four other wells, the provincial government holds the mineral rights. Monthly testing determines how large a cheque Joe and Sue will get in the mail.

Skuce said you can identify a test satellite as â&#x20AC;&#x153;a big building in the middle of nowhere.â&#x20AC;? Swing valves allow the flow to go into the separator.

Separators will have high pressure and high level sensors. They are usually pneumatically controlled and will activate a three-way valve, putting the fluid back into the group line if something goes wrong.

Pneumatic systems can be cheaper than electricity, and can be driven off fuel gas or compressed air.

Compressed air can be easier on the instrumentation due to the corrosive nature of local gas.

Web-based controls are a newer aspect. â&#x20AC;&#x153;The owner of the separator doesnâ&#x20AC;&#x2122;t have to build a big SCADA system,â&#x20AC;? Skuce said.

A small-producer can see their system on the web, hosted in Calgary.

Skuce said, â&#x20AC;&#x153;If you want to see what your gas is doing and your volumes on a well, you can do that. In the last five years, itâ&#x20AC;&#x2122;s been growing a lot. ɸ Page A25

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SURFACE SOLUTION OLUTIONS S INC.

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Services • Offset Frac Monitoring • Data Frac Injectivity Testing • Perforation Inflow Diagnostic • Step Rate Injectivity Testing • Flow and Build Up

• Gas Migration Testing • Surface Casing Vent Testing • Packer Isolation Testing • Pipeline Testing • Fluid Level Determination

CONTACT: Grande Prairie: 780.538.1074 Red Deer: 403.358.5940 Calgary: 403.261.0019 Estevan: 306.634.5290 WEBSITE: www.surfacesolutions.ca

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Itâ&#x20AC;&#x2122;s very handy. You donâ&#x20AC;&#x2122;t have to boot up a laptop. You can see a snapshot of what you would see on your laptop.

Burner systems â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;ve been working with burners for a long time,â&#x20AC;? Skuce said, noting the B149.3 standard came out in June 2011. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s worked out well. As with anything, thereâ&#x20AC;&#x2122;s maintenance.â&#x20AC;? â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;ve come up with solutions to deal with corrosion and plugging up B149.3 valve trains. Itâ&#x20AC;&#x2122;s like clogging your arteries.â&#x20AC;?

For example, Estevan Meter is now using one-inch pipes for their pilot lines instead of 3/8-inch. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s helped a lot. Itâ&#x20AC;&#x2122;s come a long way, dealing with the wet corrosive gas issues in the southeast.â&#x20AC;?

Producers, in addressing Albertaâ&#x20AC;&#x2122;s Directive 17 for measuring water, gas and oil, need their meters calibrated on a schedule. Companies are seeking to keep their systems the same. â&#x20AC;&#x153;By the sounds of it, a similar directive will be coming in here. Weâ&#x20AC;&#x2122;re getting ahead of the game by getting these meters calibrated on a regular schedule,â&#x20AC;? Skuce concluded.

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0RVW ZHOOV FDQ EHQHĂ&#x20AC;W IURP DXWRPDWLRQ Estevan â&#x20AC;&#x201C; With expansion beyond its home base of Weyburn, it was time for a name change. Last year, Industrial Electric Weyburn Ltd. became Industrial Electric & Instrumentation Ltd. (IEI) The company established an Estevan location in June 2012, and now has a satellite location in Waskada, Man. Meeting in their

new Estevan location on Sept. 10, Pipeline News spoke to general managers Geoff White and Richard Henning, and the Estevan office regional managers Tyson Lowe and Chad Chapman.

As its name suggests, the company has two equal and related focuses, electrical and instrumentation work.

Most of this is in the oilfield, but not all. For instance, the com-

pany recently installed a SCADA Â (supervisory control and data acquisition) system into the Weyburn water plant.

On the electrical side, White said â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re in construction, maintenance, heavy commercial and oilfield, as well as light commercial and residential.â&#x20AC;?

The company was founded with a focus on agricultural work, with a long-term relationship with the Weyburn

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In instrumentation, Henning said, â&#x20AC;&#x153;We cover a lot of the same markets â&#x20AC;&#x201C; agriculture, oil and gas. We also do a fair bit of water and wastewater, in Weyburn, Assiniboia,

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Regina area (but not Regina).â&#x20AC;?

A recent job had them working in the canola crushing sector, and they are currently involved on a carbon capture project in Estevan.

The company is also taking a look at the potash mining market.

Automation is a key area for IEI. â&#x20AC;&#x153;Henning said, â&#x20AC;&#x153;We have our own SCADA server and (well) optimization.â&#x20AC;?

A full time systems integrator within the instrumentation department works with the various SCADA packages in the industry

to develop coordination and controls for everything from well optimization to processes like water treatment.

Along these lines youâ&#x20AC;&#x2122;ll find their HMI, or human-machine interfaces. Thatâ&#x20AC;&#x2122;s a graphical display that shows items like tanks, pipes and transmitters in an automated set-up. â&#x20AC;&#x153;We also do wellsite SCADA programming,â&#x20AC;? Henning said.

This includes transmitter, valves, motors and the like. A lot of wireless transmitters are installed for tank level maintenance. ɸ Page A27

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ɺ Page A26 In the office, the company has drafting capabilities and can produce tender documents for clients.

A relatively recent innovation has been the company’s XSPOC pump off controller SCADA system. Chapman said, “It can be used for small scale or thousands of wells.”

As an example, The system is used in a 3,500 well installation in California, he noted.

“We’re offering it to clients for problematic wells, or high production wells they want to keep an eye on” he said.

The system can be programmed for numerous devices, including pressure, temperature and flow.

“Mass flow measurement in the field is becoming more common,” said Henning. This can be used in testing for royalties, or to see if production is somewhat off in a facility.

Pump cards, a graphical representation of the performance of a pump which is used in analysis and optimization, can be viewed remotely with the system.

Smart oilfield In a world that has smartphones and smart bombs, IEI is focusing on a smart oilfield.

Henning said, “Our focus on automation and instrumentation is to convert your standard oilfield into an intelligent oilfield.

“We are now reselling a cost-effective solution for small entry-level guys, i.e. three wells and four tanks. Instead of receiving a text message saying the tank is high, you can log in from an iPad, see the levels, and take the necessary corrective action. He (the operator) can shut in his wells if need be from home.”

Some instrumentation out there will send information out from the well but will not receive commands.

“We make it intelligent, giving it two-way communications, showing graphical representations of tank levels. We’re bringing it up to the 21st century,” Henning said.

The bottom line is automation of this type makes operations more efficient for the operators, he explained. The operator can see his run’s wells by looking at his screen, and plan his day prioritizing problems first, instead of coming across them while doing his normal circuit.

About 40 per cent of facilities in the region are “fairly intelligent” in their instrumentation, and only about 10 per cent of all wells, according to Henning. Can the remainder benefit from automation?

“Absolutely,” he said.

Chapman said probably 75 per cent of wells could see a benefit from automation.

White made the analogy of smartphones, saying many couldn’t justify the need for a smartphone until they invested in one. Once you have one, you would never be without it. ɸ Page A29

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0RUH EDQGZLGWK PHDQV PRUH SRVVLELOLWLHV Chapman noted there is a cost associated with automation, but IEI divides up that cost for the client by offering server and software maintenance. â&#x20AC;&#x153;We take that on ourselves.â&#x20AC;?

The client then doesnâ&#x20AC;&#x2122;t have to maintain their own server, which can be a considerable expense. â&#x20AC;&#x153;There can still be a bit of stigma with the operators themselves,â&#x20AC;?

White said. Some people thought that automation would mean jobs are lost, but in fact the opposite has been true. More people are needed, he said. Once people are trained on the product, they realize how it will benefit them and the facilities they manage.

Some of the move to more automated systems is coming from government regulations.

Henning said, â&#x20AC;&#x153;Thatâ&#x20AC;&#x2122;s exactly why weâ&#x20AC;&#x2122;re focusing on the automation side. Weâ&#x20AC;&#x2122;re the leaders in this corner of the world. Not only do we design and set it up locally, we maintain and support it as well.â&#x20AC;?

With properties frequently changing

hands, he noted that a company may pick up an old, antiquated facility. â&#x20AC;&#x153;Hey, hereâ&#x20AC;&#x2122;s what we can do with this,â&#x20AC;? his said, referring to assisting clients with modernizing facility operations and meeting future compliance needs.

More bandwidth One of the big stories in the wireless world right now is the opening up of the 700 megahertz portion of the electromagnetic spectrum. Formerly used for analog television broadcasts, the re-allocation of this bandwidth will dramatically shake up communications technology, and with it, automation.

The impending auction of that spectrum is what has been driving the federal governmentâ&#x20AC;&#x2122;s push for a fourth national cellular carrier.

Whenever new technologies have become available, inevitably, it has an impact in the oilfield. Henning said weâ&#x20AC;&#x2122;re probably three years from 700 megahertz deployment, but there are a lot of future technologies that may be applicable. A lot of it has to do with video.

One is the use of more cost-effective

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video surveillance. This might include the use of a video camera to monitor simple analog gauges or tank levels in real time.

Thermal cameras can also be used for detection of emissions leaks. Other cameras can be triggered to record truckers when they arrive on location.

White said, â&#x20AC;&#x153;Thereâ&#x20AC;&#x2122;s a million ways to bring this all to the clients.â&#x20AC;?

Expansion explained After operating principally from Weyburn for decades, why expand now?

White responded, â&#x20AC;&#x153;Management discussed with workers what their ambitions were. One of the common themes was expansion. The next thing was to pick a location. Estevan was the logical choice.â&#x20AC;?

Lowe said, â&#x20AC;&#x153;We already knew a lot of the clients down here.â&#x20AC;?

Henning said, â&#x20AC;&#x153;For the last three years we were seriously looking at Estevan. We found property and people to move there.â&#x20AC;? ɸ Page A30

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Éş Page A29 Lowe relocated to Estevan with the expansion, along with one of the instrument techs.

Chapman hails from Estevan, as does most of the other staff. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;ve got seasoned people here in both departments,â&#x20AC;? White said.

In total, IEI has 63 staff members, with about a dozen working out of Estevan.

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opened as a satellite to Estevan, supplying clients in southwest Manitoba.

Chapman said the Waskada operation is largely safety-driven.

With a two-hour drive each way from Estevan to Waskada, a worker has to put in a 12 hour day to get eight hours in on-site. And then thereâ&#x20AC;&#x2122;s the economics argument. â&#x20AC;&#x153;Who wants to pay for four hours of travel?â&#x20AC;? he asked.

Henning said the Waskada facility is used on demand. They had

made use of the local camp until a house and small shop was leased.

The company also has a sales presence in Calgary. But when asked about operations expansion into Alberta, Henning said he canâ&#x20AC;&#x2122;t see that in the immediate future but wouldnâ&#x20AC;&#x2122;t rule it out. To date the company has done work in Yorkton, Regina, Swift Current and Kindersley in addition to their daily commitments in the Weyburn, Estevan and Waskada areas.

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9LUGHQ 0HWHU SURXG WR EH LQ 0DQLWRED Virden, Man. â&#x20AC;&#x201C; Estevan Meter has serviced southwest Manitoba for many years, but the company found that it was important to establish a Manitoba-based presence. Thus, Virden Meter, a sister company, was born. â&#x20AC;&#x153;We officially became Virden Meter in the beginning of 2013,â&#x20AC;? said Mark Kessler, who manages the operation and is a partner in the ownership.

Previously the outfit had established a shop under the banner of Estevan Meter in mid-July 2012.

Kessler had worked with Estevan Meter for a year prior to buying into the ownership of Virden Meter. Prior to that he spent a lot of time working across southeast Saskatchewan looking after pipelines. â&#x20AC;&#x153;The last 17 years, I was an instrumentation tech with TransGas,â&#x20AC;?

Kessler said. TransGas is the SaskEnergy subsidiary responsible for the Crown corporationâ&#x20AC;&#x2122;s gas transportation and storage services. â&#x20AC;&#x153;We did lots of compressor maintenance, measurement and quality control.â&#x20AC;? â&#x20AC;&#x153;I covered the southeast corner of Saskatchewan, from Swan River, Manitoba, to Grenfell to the U.S. border,â&#x20AC;? he said. Kessler was based in Moosomin, and he still lives in Wapella Before that he worked for Hudson Bay Mining and Smelting in Flin Flon for five years.

Born in Estevan, Kessler moved to Coronach as a child, where his father worked at the Poplar River Power Station. â&#x20AC;&#x153;My Dad used to work for SaskPower. He was the mechanical foreman,â&#x20AC;? he said. ɸ Page A33

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707,305, 5,>: 6J[VILY Estevan can do, weâ&#x20AC;&#x2122;re just smaller scale. We do rod rotator repairs, we fix chemical injection pumps and Moyno pumps.â&#x20AC;?

Service area From Virden, they support the local oilfield, Waskada, Pierson, Sinclair-Daly and Manson fields.

â&#x20AC;&#x153;We service every area in the shop. Most of our field work is in the Sinclair-Daly area.â&#x20AC;? â&#x20AC;&#x153;There are four Virden Meter employees, including me, plus weâ&#x20AC;&#x2122;ve had a guy from Estevan the whole year,â&#x20AC;? Kessler said.â&#x20AC;&#x153;We also have a combustion service with a guy out

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of Moosomin, available here.â&#x20AC;?

Between Virden Meter and Estevan Meter, the two firms offer a 24-hour, on-call service. â&#x20AC;&#x153;The people and companies in Virden have made me feel very welcome. I think theyâ&#x20AC;&#x2122;re glad weâ&#x20AC;&#x2122;re here to help them.â&#x20AC;?

DÄ&#x201A;Ć&#x152;ĹŹ <Ä&#x17E;Ć?Ć?ĹŻÄ&#x17E;Ć&#x152; Ä&#x161;ŽŜĆ? Ä&#x201A; sĹ?Ć&#x152;Ä&#x161;Ä&#x17E;Ĺś KĹ?ĹŻ Ä&#x201A;Ć&#x2030;Ĺ?Ć&#x161;Ä&#x201A;ĹŻĆ? ĹŠÄ&#x17E;Ć&#x152;Ć?Ä&#x17E;Ç&#x2021;Í&#x2DC; sĹ?Ć&#x152;Ä&#x161;Ä&#x17E;Ĺś DÄ&#x17E;Ć&#x161;Ä&#x17E;Ć&#x152; Ĺ?Ć? Ĺ?Ć? Ä&#x201A; Ć?ĆľĆ&#x2030;Ć&#x2030;Ĺ˝Ć&#x152;Ć&#x161;Ä&#x17E;Ć&#x152; ŽĨ Ć&#x161;Ĺ&#x161;Ä&#x17E; KĹ?ĹŻ Ä&#x201A;Ć&#x2030;Ĺ?Ć&#x161;Ä&#x201A;ĹŻĆ?Í&#x2022; Ć&#x161;Ĺ&#x161;Ä&#x17E; ĹŻĹ˝Ä?Ä&#x201A;ĹŻ :ƾŜĹ?Ĺ˝Ć&#x152; Ĺ&#x161;Ĺ˝Ä?ĹŹÄ&#x17E;Ç&#x2021; Ć&#x161;Ä&#x17E;Ä&#x201A;ĹľÍ&#x2DC; <Ä&#x17E;Ć?Ć?ĹŻÄ&#x17E;Ć&#x152; Ĺ?Ć? Ć&#x2030;Ä&#x201A;Ć&#x152;Ć&#x161;Í˛Ĺ˝Ç ĹśÄ&#x17E;Ć&#x152; ŽĨ sĹ?Ć&#x152;Ä&#x161;Ä&#x17E;Ĺś DÄ&#x17E;Ć&#x161;Ä&#x17E;Ć&#x152;Í&#x2022; Ä&#x201A; Ć?Ĺ?Ć?Ć&#x161;Ä&#x17E;Ć&#x152; Ä?ŽžĆ&#x2030;Ä&#x201A;ĹśÇ&#x2021; ŽĨ Ć?Ć&#x161;Ä&#x17E;Ç&#x20AC;Ä&#x201A;Ĺś DÄ&#x17E;Ć&#x161;Ä&#x17E;Ć&#x152;Í&#x2DC; WĹ&#x161;Ĺ˝Ć&#x161;Ĺ˝ Ä?Ç&#x2021; Ć&#x152;Ĺ?Ä&#x201A;Ĺś Ĺ?ĹśÄ?Ĺ&#x161;ƾŏ

Éş Page A31 Kessler went to the Palliser Campus of SIAST in Moose Jaw to take his instrumentation tech course.

Supporting community When asked why they set up shop in Virden, Kessler responded, â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re here to support the community of Virden. We couldnâ&#x20AC;&#x2122;t properly service this area out of Estevan. â&#x20AC;&#x153;We felt it was time to come here and bring some of our business into Virden, not just pull it into Saskatchewan. â&#x20AC;&#x153;We donâ&#x20AC;&#x2122;t want the Alberta licence plate syndrome. Itâ&#x20AC;&#x2122;s only fair

the people of Manitoba benefit,â&#x20AC;? he said, noting the desire of oil companies with operations in the area to work with locally-based firms. â&#x20AC;&#x153;It was important for us to have a Manitoba presence.â&#x20AC;?

With a maroon jersey for the local Junior A hockey team hanging prominently in his office, Kessler said, â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re fairly major sponsors of the Virden Oil Capitals. â&#x20AC;&#x153;Hockeyâ&#x20AC;&#x2122;s huge, right? Melitaâ&#x20AC;&#x2122;s doing a fairly major renovation on their rink. We gave them $5,000.â&#x20AC;?

Specialties â&#x20AC;&#x153;We do oilfield instrumentation sales, service and repairs. We

have instrumentation techs we can send into the field to do repairs.

We have a full service shop. Weâ&#x20AC;&#x2122;re a certified pressure safety valve shop,â&#x20AC;? he said. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re a certified flow meter repair and proving facility. As well vessel turnaround supplies and service is a big part of what we doâ&#x20AC;?.

The shop is located on the northern outskirts of Virden, near the airport and Tundra Oil and Gasâ&#x20AC;&#x2122; main yard.

They have two service trucks based in Virden. â&#x20AC;&#x153;I try to stay in here, but I do do some field work,â&#x20AC;? Kessler said. â&#x20AC;&#x153;We can do pretty much everything

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Matt Perkins is a journeyperson instrumentation technician with Wey-

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burn-based Industrial Electric & Instrumentation Ltd. Heâ&#x20AC;&#x2122;s been doing it â&#x20AC;&#x153;forever.â&#x20AC;? Riding along with him was Blair Hultin, a co-op student taking instrumentation technology at SIASTâ&#x20AC;&#x2122;s Palliser campus in Moose Jaw. The two were working on the instrumentation of a wellhead in the Weyburn unit on Sept. 12.

Hultin lives in Regina, and has been commuting to Weyburn. â&#x20AC;&#x153;I have one semester of school left. This is my last work term,â&#x20AC;? he said.

Nothing is official yet, but heâ&#x20AC;&#x2122;s hoping to find full-time work with IEI once he is done his three-year technologist diploma. That will be followed by two years hands-on work before taking the journeyperson exam. â&#x20AC;&#x153;They said thereâ&#x20AC;&#x2122;s a good chance of future work,â&#x20AC;? Hultin said.

Many people take a complimentary electrician program at the same time, resulting in two tickets. Not Hultin, however. â&#x20AC;&#x153;I like the instrumentation side of things. This has a lot less shovel work.â&#x20AC;?

Perkins noted, â&#x20AC;&#x153;When I was in school, there were a lot doing dual-ticket.â&#x20AC;?

He was told to do the electrician portion first, because once a person had their instrumentation tech ticket, they were unlikely to want to pursue the electrician qualification later.

The alternative is a four-year apprenticeship in instrumentation technology, which is what Perkins did. That said, he prefers the three year-diploma followed by two years in the field path. While the material covered is the same, thereâ&#x20AC;&#x2122;s more time to get a good grounding in the theoretical side, he feels. ɸ Page A35

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707,305, 5,>: 6J[VILY Éş Page A34 â&#x20AC;&#x153;The apprenticeship seems too fast. You get the same material, but not the time. â&#x20AC;&#x153;More theory means more confidence.â&#x20AC;?

Perkins has only been in Saskatchewan for about a year now, calling Weyburn home. He grew up in Calgary, and spent time working in fabrication shops in Leduc and all over Alberta with TransCanada. He also worked with Altagas in Leduc.

Life on the road can be adventurous when youâ&#x20AC;&#x2122;re young, but not so desirable when you get older, said the 55-year-old. He likes the compactness of the southeast Saskatchewan oilpatch, meaning he can sleep in his own bed. â&#x20AC;&#x153;You get tired of covering the province from one end to the other. It was exciting when youâ&#x20AC;&#x2122;re 20, but you get sick of it when youâ&#x20AC;&#x2122;re 40. â&#x20AC;&#x153;I was working from Zama to Etzcom, south of Medicine Hat,â&#x20AC;? Perkins said.

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Hultin took up instrument technology as a substantial change from what he used to do. He had pursued an economics degree and worked with the Royal Bank, and then later worked in construction equipment sales. He also wanted something more steady than a commission-based lifestyle. â&#x20AC;&#x153;I wanted to do something with good wages, you can use your hands and mind.â&#x20AC;?

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Bienfait â&#x20AC;&#x201C; With its founders originally from Saskatchewan, Abrasive Blast & Paint has set up a shop here after 19 years in operation in Alberta.

Abrasive started out in Nisku in 1994, where they have a shop in Precision Drillingâ&#x20AC;&#x2122;s yard. Colin Fedoruk is the manager and salesperson for Abrasive.

Heâ&#x20AC;&#x2122;s part of the family business, which is owned by his uncle and aunt, Lorne and Paula Fedoruk. Colin spent several years working in the Alberta operation.

Ever notice that when heavy equipment goes up for auction, all the blades and buckets have a new coat of paint? â&#x20AC;&#x153;For the last four years, we did all the Ritchie Brothers sales in Nisku. We shut that down to move here,â&#x20AC;?

Fedoruk said. â&#x20AC;&#x153;Our main abrasives shop is right in Nisku. Itâ&#x20AC;&#x2122;s about five years old now. We run 24/7, seven days a week.

Bienfait is the companyâ&#x20AC;&#x2122;s third location.

They started operations in southeast Saskatchewan on April 1, with

a yard just west of the Calfrac facility, west of town.

There they have a 96-foot long Norseman tent structure that acts as the main shop. Itâ&#x20AC;&#x2122;s equipped with heaters to deal with winter. â&#x20AC;&#x153;We are planning a building. Weâ&#x20AC;&#x2122;ve got to get some revenue in first,â&#x20AC;? Fedoruk said. â&#x20AC;&#x153;Iâ&#x20AC;&#x2122;ve done it all. Iâ&#x20AC;&#x2122;ve washed, Iâ&#x20AC;&#x2122;ve painted, Iâ&#x20AC;&#x2122;ve blasted, everything.

I started with my uncle when I was 17,â&#x20AC;? Fedoruk said. He is now 31.

He spent one year working on drilling rigs, but didnâ&#x20AC;&#x2122;t like it.

Fedorukâ&#x20AC;&#x2122;s family, including his uncle, orginates from Togo, Saskatchewan, near the Manitoba border.

He went to school in Yorkton. â&#x20AC;&#x153;I watched his company grow from one shop and a mobile unit to this,â&#x20AC;?â&#x20AC;&#x2122; Fedoruk said of his uncleâ&#x20AC;&#x2122;s operation. â&#x20AC;&#x153;We do drilling and service rigs, whatever the customer wants to give us,â&#x20AC;? Fedoruk said. â&#x20AC;&#x153;Anything from truck decks to inside tanks, weâ&#x20AC;&#x2122;re happy to do.â&#x20AC;?

One of their projects is a new rig for a local drilling company.

In early August they were working on shale bins and pipe tubs.

Some of that work is being sent over from a Redvers manufacturer. ɸ Page A38

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)DPLO\ EXVLQHVV H[SDQGV LQWR 6DVNDWFKHZDQ Éş Page A37 Abrasive has been getting support from several local drilling companies, working on everything from handrails to sub-structures and derricks. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re very thankful for the opportunity they gave us to start up,â&#x20AC;? he said.

Thatâ&#x20AC;&#x2122;s not all, though. A garbage truck, for instance, was in the main bay in early August. They do

trailers, garbage cans, boiler buildings as just a sample. â&#x20AC;&#x153;I did a tractor and a trackhoe,â&#x20AC;?

Fedoruk said.

They are looking for heavy equipment work for the winter slow time. â&#x20AC;&#x153;In the future, we want to run 24/7. We want to run like Nisku runs,â&#x20AC;? he said, pointing out that it is more efficient to work that way. â&#x20AC;&#x153;The guys we have here are very professional, and do great Equipment Finance Experts Making Capital Work

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fait start-up, Fedoruk worked with a large local shop in Estevan, doing similar sandblasting and painting work for three-and-a-half years.

That included work on new and rebuilt buildings and rigs.

The big recession is what brought him back. â&#x20AC;&#x153;I left in the recession in Nisku. There was nothing going on,â&#x20AC;? he said.

His uncle called up him after this past Christmas, and that got the ball rolling on the Bienfait location. â&#x20AC;&#x153;He wanted to give me the opportunity. The work is here,â&#x20AC;? Fedoruk said. â&#x20AC;&#x153;We want to get closer to home.â&#x20AC;?

As for the location, Fedoruk said he lives in Bienfait, and there was more land available. The location is a 10-acre site in a new industrial

subdivision.

There are five people working for Abrasive in Bienfait, out of a company whose staff runs around 60 to 70 people. â&#x20AC;&#x153;Iâ&#x20AC;&#x2122;m mostly running the phone and sales, but Iâ&#x20AC;&#x2122;m not afraid to help the boys out.â&#x20AC;?â&#x20AC;&#x2122; Jason McCann, originally from New Brunswick, is the general manager of the whole company. Heâ&#x20AC;&#x2122;s like family, according to Fedoruk.

Tim Fedoruk, Lorneâ&#x20AC;&#x2122;s brother, runs Abrasiveâ&#x20AC;&#x2122;s main shop in Nisku. Jeff Anderson, Paulaâ&#x20AC;&#x2122;s brother, runs the Precision yard.

All three of Lorne and Paulaâ&#x20AC;&#x2122;s children are involved. Daughters Robyn and Rayleen are preppers and painters, while son Ryan works in business development.

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$UURZ 5HORDG VWDUWV VPDOO LQ .HUUREHUW Story and photos by Geoff Lee Kerrobert – Arrow Reload Systems Inc. may seem like a new kid on the block with the start-up of its first small scale crude-by-rail terminal in Kerrobert this year, but that’s where the analogy ends.

As a subsidiary of Arrow Transportation Systems Inc. which is based in Vancouver, the company has been providing trucking and railcar reloading services for Canadian Pacific Railway since 1988 Dating back to 1919, the company is owned and operated by B.C.’s Charles family. It provides transportation, distribution and materials handling solutions to customers throughout North America.

Pipeline News caught up with local operations supervisor Brad Murphy in late August for a tour of the facility located next to the CP mainline on Railway Avenue in the downtown core.

“Right now it’s been slow. On average, we’ve been trying to keep to 100 cars a month,” said Murphy.

“Marketing wise, it’s been slow for the last six to eight weeks. I guess everyone’s kind of that way.

“We’re hoping here next month it picks up again to get back to those numbers.”

The Kerrobert terminal was launched as a small scale operation back in January. With a capacity to load up to 10 railcars a day with crude oil, it has room for expansion.

“It was a learning curve for our company. It was the first crude site that we’ve done,” said Murphy.

“Arrow, as a whole, is just learning the process and procedures. Kerrobert was their first, and I think since, then they’ve opened one in Edmonton.”

Arrow Reload has multiple transloading facilities in North America that handle a variety of commodities from lumber and aggregates to bulk liquids with crude oil from Kerrobert being the newest.

The Kerrobert terminal features two spur lines that can hold about 35 cars on site, with room to add more tracks and storage tanks over time.

“The site was always intended to have the capability for expansion to install tanks, etc. Until that’s warranted by the shipping, it will stay the way it is,” said Murphy.

“Storage tanks were built into the expansion plans. From what I understand, the site is available with that capability. Right now there are no immediate plans.”

The facility includes two Sky Eye metering stations with D-17 compliant meter packages for custody transfer truck unloading and loading.

“If we’re doing 10 cars a day, we’re looking at 30 to 40 trucks,” said Murphy.

“The stations are mobile stations that we move up and down the track depending on what producers are coming in at the time.

“It makes it easier having the extra one. We run a shuttle car as well. We move our own cars around logistically the best way we can to get stuff in place.”

Most of the oil is heavy oil is trucked from within a radius of 20 miles from Kerrobert. There is also some light oil.

“Most of the oil is battery oil. It’s cut (.5 per cent water cut) and been tested before it gets here,” explained Murphy.

“We are not responsible for the quality of oil other than monitoring.”

With news of the Lac-Mégantic crude oil rail disaster that killed 47 people still topical, Murphy said Kerrobert has little to fear from Arrow Reload’s operations.

“We’re set very well down here. Our site is very secure,” he said.

“As far as the Quebec incident goes, anybody that knows the flat land of Saskatchewan – to have that here would be a real freakish accident. It’s not going to happen on my site.” ɸ Page B2

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9DSRXU UHFRYHU\ V\VWHP LQ SODFH GXULQJ ORDGLQJ Éş Page B1 As for odours from H2S, the Kerrobert terminal deals with clean oil and doesnâ&#x20AC;&#x2122;t have any scavenging system on site yet. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re fully monitored and set up to handle sour gas. We do closed venting on our product that comes in here as well,â&#x20AC;? said Murphy. â&#x20AC;&#x153;We donâ&#x20AC;&#x2122;t vent directly to atmosphere. All the pressure is getting returned to the trucks and they leave with it. â&#x20AC;&#x153;We maintain the level of smell to the best possible way that we can do it, to avoid the problem because we are right in town.â&#x20AC;?

Murphy believes that TORQ Transloading Inc.â&#x20AC;&#x2122;s plans to build a $100 million transloading facility south on town with help to raise the profile of Arrowâ&#x20AC;&#x2122;s facility while boosting the local economy. â&#x20AC;&#x153;Kerrobertâ&#x20AC;&#x2122;s always been an oil town. Everybodyâ&#x20AC;&#x2122;s excited about have a new big business like TORQ come close to town,â&#x20AC;? he said. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s going to provide work. Itâ&#x20AC;&#x2122;s going to affect our community really well. Weâ&#x20AC;&#x2122;re used to the oil trucks running through town anyway.â&#x20AC;?

TORQ plans to locate its transloading terminal adjacent to the Enbridge Station and the Plains Midstream tank farm on Pipeline Road and tie into

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Inter Pipeâ&#x20AC;&#x2122;s lines. â&#x20AC;&#x153;It brings more attention to the business, I guess. It gives us more exposure and maybe other companies will look at doing it more, I guess,â&#x20AC;? said Murphy. â&#x20AC;&#x153;Really, competition wise, the scope of their project is so much larger than ours and based on taking oil out of the pipeline as well, whereas, we are more geared to just handling local produced oil off-truck. â&#x20AC;&#x153;Theyâ&#x20AC;&#x2122;re going to do that as well, but I understand they have a significant partner so it doesnâ&#x20AC;&#x2122;t really affect my business directly.â&#x20AC;?

The Arrow Reload terminal is designed to operate on two, seven day shifts with about six employees per shift overseen by Murphy who hails from Kerrobert. â&#x20AC;&#x153;Iâ&#x20AC;&#x2122;m right from town. I was in the grain business for 20 years. This is the first time I have been employed outside the ag industry, so itâ&#x20AC;&#x2122;s a new venture for me as well,â&#x20AC;? said Murphy. â&#x20AC;&#x153;The challenges arenâ&#x20AC;&#x2122;t much different from the procurement of grain to put in railcars. I worked in grain processing plants, so I have shipped lots of products on rail before. â&#x20AC;&#x153;This is just a different product with different rules and regulations and maybe a little bit different procedure with it.â&#x20AC;?

The site includes an office trailer, a tool shack and crew shack and is accessed by Railway Avenue.

Thatâ&#x20AC;&#x2122;s the designated truck route that avoids the use of Highway 51 through town â&#x20AC;&#x201C; thatâ&#x20AC;&#x2122;s been under construction for new water mains. â&#x20AC;&#x153;Our trucks will have no impact on the main road after itâ&#x20AC;&#x2122;s done and paved,â&#x20AC;? said Murphy. â&#x20AC;&#x153;We have direct access in and out on both ends of town through the bottom streets. â&#x20AC;&#x153;We have informal agreements with the Town about road maintenance. Itâ&#x20AC;&#x2122;s something weâ&#x20AC;&#x2122;re working in partnership with the Town to provide the business here and look after our end of it.â&#x20AC;?

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6HQDWH FDOOV IRU UDLO VDIHW\ UHYLHZ Ottawa â&#x20AC;&#x201C; A Senate committee is urging the federal government to launch an armâ&#x20AC;&#x2122;s length review of the transport of dangerous goods by rail in the wake of the Lac-MĂŠgantic rail disaster.

That was one of 13 recommendations in a report by the Senate Committee on Energy, the Environment and Natural Resources on how to make the transport of hydrocarbons by pipelines, tankers and railcars safer. â&#x20AC;&#x153;In the years ahead, hydrocarbon production will continue to grow and so will transport capacity, said Senator Richard Neufeld, chair of the committee. â&#x20AC;&#x153;Thatâ&#x20AC;&#x2122;s why we believe Canadians need to know more about what the federal government has in place to protect citizens and the environment, and what more can be done to enhance current practices.â&#x20AC;?

Canadian National Railway and Canadian Pa-

cific Railway are expected to move 140,000 carloads of crude in 2013, up from 500 in 2009.

The committee began its review in November 2012, but the Lac-MĂŠgantic rail tragedy that killed 47 people and destroyed the downtown core of that town added a sense of urgency to its deliberations. â&#x20AC;&#x153;We heard a lot of testimony which should give Canadians confidence, but the reality is that the transportation of hydrocarbons can never be completely without risk,â&#x20AC;? said Senator Grant Mitchell, deputy chair of the committee. â&#x20AC;&#x153;It is my hope that at the very least, Lac-MĂŠgantic can invoke an Exxon Valdez response, where we carefully and thoroughly examine what went wrong so that any improvements that need to be made, can be made quickly.â&#x20AC;?

As the committee was wrapping up its report, Transport Canada announced emergency directives to improve rail safety less than three weeks after the Lac-MĂŠgantic disaster.

The committee set out to examine the state of emergency and spill prevention and response plans under federal authority and to make recommendations to improve public safety and the protection of the environment.

The report calls on Transport Canada to implement all of the safety recommendations from a federal report two years ago regarding the transport

of dangerous goods.

Additionally, it recommends Transport Canada, in co-operation with its U.S. regulatory counterpart, to find ways to accelerate the phase-out of the DOT-111 standard tank cars used to transport crude oil in both countries.

These tanks cars have a 40-year lifespan and lack protective housings to safeguard the top fittings from impact damage making them prone to dangerous leaks in a derailment.

The committee also made specific recommendations aimed at improving railway safety culture, and for the government to provide better regulatory oversight of the transport of dangerous goods.

The report recommends that Transport Canada makes sure rail companies have adequate liability insurance to cover damages caused by a major accident.

The committee also makes recommendations for marine spill response and for the transport of hydrocarbons by pipelines. â&#x20AC;&#x153;Transportation systems operate within a highly regulated environment. There are extensive regulatory frameworks, management systems, standards and practices, all serving to promote safety,â&#x20AC;? said Mitchell.

The committee held 18 hearings and heard from 51 different parties during its deliberations.

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Estevan â&#x20AC;&#x201C; The digital age is coming to two-way Ä&#x201A;Ć&#x152;Ä&#x17E; ĆľĆ?ĆľÄ&#x201A;ĹŻĹŻÇ&#x2021; Ć&#x152;Ä&#x17E;Ç&#x20AC;Ä&#x17E;Ć&#x152;Ć?Ä&#x17E; Ä?ŽžĆ&#x2030;Ä&#x201A;Ć&#x;Ä?ĹŻÄ&#x17E;Í&#x2022; Ä?ĆľĆ&#x161; ŜŽĆ&#x161; ĨŽĆ&#x152;Ç Ä&#x201A;Ć&#x152;Ä&#x161; Ä?ŽžĆ&#x2030;Ä&#x201A;Ć&#x;Ä?ĹŻÄ&#x17E;Í&#x2022; ĹľÄ&#x17E;Ä&#x201A;ĹśĹ?ĹśĹ? Ç&#x2021;ŽƾĆ&#x152; Ä?ŽŽĆ?Ć&#x161;Ä&#x17E;Ć&#x152; ĨĆ&#x152;Žž Ä&#x201A; ĨÄ&#x17E;Ç Ç&#x2021;Ä&#x17E;Ä&#x201A;Ć&#x152;Ć? Ä&#x201A;Ĺ?Ĺ˝ Ç Ĺ˝ĹśÍ&#x203A;Ć&#x161; Ç Ĺ˝Ć&#x152;ĹŹ radio communications in southeast Saskatchewan, Ç Ĺ?Ć&#x161;Ĺ&#x161; Ć&#x161;Ĺ&#x161;Ä&#x17E; ĹśÄ&#x17E;Ç >d Ä?Ä&#x17E;ůůƾůÄ&#x201A;Ć&#x152; Ć&#x2030;Ĺ&#x161;ŽŜÄ&#x17E;Ć?Í&#x2DC; according to Art Dougherty of Estevanâ&#x20AC;&#x2122;s Industrial

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Each year, Dougherty attends a trade show in Las Vegas to learn about the newest things in the communications market. The International World Communications Expo has the â&#x20AC;&#x153;latest and greatest tech in RF (radio frequency),â&#x20AC;? he said. â&#x20AC;&#x153;The emphasis is now digital radio,â&#x20AC;? according to Dougherty. Thatâ&#x20AC;&#x2122;s a good thing, since Industrial Communications is staying ahead of the game. â&#x20AC;&#x153;We started to move into a digital format last year.

Digital doesnâ&#x20AC;&#x2122;t give you more range, but it allows you to carry more information on an RF channel.â&#x20AC;?

Analog two-way radio systems are limited to a 25 kilohertz slice of bandwidth. With digital, that number is dropped to 6.25 kilohertz. The result is four times as many channels can be accommodated in the same slice of electromagnetic spectrum.

This allow for packetization of voice communication. It also allows for future technology like video transmission for surveillance. ɸ Page B5

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Éş Page B4 â&#x20AC;&#x153;You can do more things with it down the road,â&#x20AC;? Dougherty said. The digital advantage will come with future advancements, i.e., oil companies showing realtime video footage at oil sites.

In the area of dispatch, radio text messages can be useful, especially for fleet trucking.

With more and more people using wireless applications every day, and wireless spectrum being a limited resource, every bit of spectrum is precious. Dougherty noted, â&#x20AC;&#x153;Industry Canada is telling us with any new systems, they want to use narrow band.â&#x20AC;?

Industrial Communications operates a network of repeater towers throughout southeast Saskatchewan and southwest Manitoba. â&#x20AC;&#x153;With our repeater system, weâ&#x20AC;&#x2122;ve got analog and digital. Next year we will be integrated 100 per cent digital,â&#x20AC;? he said.

The repeaters can switch between analog and digital communications, depending on customer needs.

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â&#x20AC;&#x153;Thatâ&#x20AC;&#x2122;s just the technology changes,â&#x20AC;? he said.

LTE, or long-term evolution, is the latest and greatest thing in cellular communications, but itâ&#x20AC;&#x2122;s not perfect. Yes, it can transmit a lot more data, and faster, but Dougherty noted its radio wave propagation is not the same as older cellular technologies. For instance, it can have difficulties in metal buildings.

New LTE boosters will be helpful in those situations.

As for two-way radios, theyâ&#x20AC;&#x2122;re not going anywhere anytime soon, according to Dougherty. With cellphones being outlawed while driving, reaching for a trusty microphone is still going to be around for the long term.

Industrial Communications installs fleet management GPS systems which goes hand-in-hand with two-way radio communicaitons.

Cellular boosters are another common useful item they install. A booster has two antennas â&#x20AC;&#x201C; one inside the vehicle, and one outside. They substantially improve cellular reception.

The thing is boosters are typically reverse compatible, but not forward compatible. That means a 3G cellular booster may work fine with older cellphones, but the signal for the new LTE phones is completely different, requiring a new booster.

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Industrial Communications offers an automation communications solution in the form of the ProTalk Plus. With an autodialler, it can be hooked up to a land line or radio system. It can be used on a battery for monitoring items like high tank levels or H2S alarms. Up to eight alarm contacts can be used, but an expander board allows for 16.

With four relays, Art Dougherty said, â&#x20AC;&#x153;You can shut down or start a well remotely using a DTMF (dual tone multi-frequency).â&#x20AC;?

Similar to a dial tone, he said, â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s simple and effective.â&#x20AC;?

Alarms can have vocal recordings, including identifying the location and nature of the alarm.

The technology has been around for at least 20 years, with the current generation being seven years old. â&#x20AC;&#x153;Thatâ&#x20AC;&#x2122;s the one of many products available for automation and communication systems that we carry,â&#x20AC;? Dougherty said.

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50 VHHNV URDG IXQGLQJ GHDO ZLWK 7254 Â&#x201E; Story and photos

by Geoff Lee The Rural Municipality of Oakdale expects to nail down a road maintenance deal with TORQ Transloading Inc. before issuing a development permit to build its $100 million crude-

by-rail terminal about 15-kilometres southeast of Kerrobert.

The terminal will be located on Pipeline Road that could see up to 150 trucks per day travelling to the facility during peak volumes.

The RM is seeking funding from users

and provincial grants to upgrade Pipeline Rd and the busy Hopedale Rd corridor to super grid status.

Road maintenance agreements in Saskatchewan cover only the incremental cost that occurs above regular maintenance costs due to the increased pressures of

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heavy or frequent hauls.

Municipalities also have the authority to request a performance bond from haulers, if it is negotiated and included in the road maintenance agreement.

Road maintenance agreement rates will increase by 37 per cent over 2013 and 2014 pending the ability of the province to use actual cost data from RMs as the basis for rates.

Darwin Whitfield, reeve of the RM of Oakdale in Coleville sat down with Pipeline News to talk about the need for a road maintenance deal with TORQ and other haulers using the roads.

PN: How would you describe the level of oil and gas activity in the region?

Whitfield: Itâ&#x20AC;&#x2122;s

Arnett & Burgess Pipeliners welcomes,

JOE LOBENDAHN, former Saskatchewan Roughrider and former A & B Pipeliner, as our new FIELD SALES REPRESENTATIVE for Saskatchewan and Manitoba.

Joe is based out of Regina, SK and can be reached at 306-209-5427

picked up quite a bit.

Weâ&#x20AC;&#x2122;re pretty steady. Itâ&#x20AC;&#x2122;s been here for 50 years or so. Weâ&#x20AC;&#x2122;ve built the road infrastructure around it over the years.

Now itâ&#x20AC;&#x2122;s just the magnitude, the heavy trucks that are moving on it thatâ&#x20AC;&#x2122;s making it tough to keep up with infrastructure.

Itâ&#x20AC;&#x2122;s tough to get the industry to want to play ball as far as road usage maintenance agreements go.

PN: Is road maintenance the biggest cost burden for the RM due to heavy oilfield truck traffic?

Whitfield: Yes. Our biggest issue is we are in the centre of the hub.

We are the hub, so weâ&#x20AC;&#x2122;ve got the trucks coming all through the spokes.

They have to go through us to get to the terminals, so when you are building roads, youâ&#x20AC;&#x2122;ve got a small tax base to build that from.

Thatâ&#x20AC;&#x2122;s what other municipalities are even having issues with. The

oil is coming through and damaging their roads and itâ&#x20AC;&#x2122;s tough to collect enough taxes to keep the roads up to where they should be.

PN: How many kilometres of roads do you have to maintain in the RM? Whitfield: If we were wanting to pave our main arteries, not counting our back trail roads, weâ&#x20AC;&#x2122;re probably looking at close to 500 miles.

PN: How essential is a road improvement agreement with TORQ before they begin construction?

Whitfield: Thatâ&#x20AC;&#x2122;s the key component on the whole project. We said to them this is a community.

Itâ&#x20AC;&#x2122;s maybe not a town, but you need infrastructure to get there.

Itâ&#x20AC;&#x2122;s no different than a developer that is setting up houses in the city.

Those developers pay for the infrastructure to get to their development. ɸ Page B7

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707,305, 5,>: 6J[VILY Éş Page B6 We need that road built to a certain standard that will take the volume that they are saying.

Theyâ&#x20AC;&#x2122;re saying there wonâ&#x20AC;&#x2122;t be as many trucks involved. They are keying more to bring the oil out of the pipeline (Inter Pipe).

The truck still has to get to the terminal to get it down the pipeline unless the pipeline companies put some more pipelines in the ground or LACT units to get oil from batteries into the sale lines.

The Lease Automatic Custody Transfer (LACT) unit is a critical system in ownership transfer of crude oil and petroleum products from the production site to trucks, pipelines or storage tanks.

PN: How many oilfield companies access Pipeline Road?

There are three or four main companies that go there. Weâ&#x20AC;&#x2122;ve got some road maintenance agreements with the heavier haul ones.

PN: What kind of improvements are you considering for TORQ's use of Pipeline Rd? Whitfield: Thatâ&#x20AC;&#x2122;s our negotiations right now. Number one, itâ&#x20AC;&#x2122;s got to get built to a super grid status with the ability to be paved â&#x20AC;&#x201C; with seven residents living on the four mile stretch that theyâ&#x20AC;&#x2122;ve got to use.

If it gets to peak volumesâ&#x20AC;&#x201C; we know it will be staged in â&#x20AC;&#x201C; itâ&#x20AC;&#x2122;s 150 trucks in, but they have to come out so thatâ&#x20AC;&#x2122;s 300 trucks a day. Thatâ&#x20AC;&#x2122;s six and a quarter trucks an hour.

Theyâ&#x20AC;&#x2122;re going to want to get in there 24/7.

PN: This whole area is becoming a major oil transportation hub. What are your thoughts on that regarding road maintenance?

Whitfield: Well it was busy before and itâ&#x20AC;&#x2122;s going to be a lot busier now.

Somethingâ&#x20AC;&#x2122;s going to have to be done not just on our rural roads, but on our main highways.

They werenâ&#x20AC;&#x2122;t built to primary â&#x20AC;&#x201C; theyâ&#x20AC;&#x2122;re running primary weights. As resi-

dents, weâ&#x20AC;&#x2122;re seeing a lot of damage on Highway 21 and nobody looking after it.

We havenâ&#x20AC;&#x2122;t seen a plan from the province on how they are going to build this structure up to what is needed to todayâ&#x20AC;&#x2122;s standard.

PN: Why canâ&#x20AC;&#x2122;t the RM pay for road maintenance on Pipeline Rd and other routes from taxes?

Whitfield: You canâ&#x20AC;&#x2122;t expect your local tax base to take on a project that big.

These trucks are travelling every road.

We build our main grids to get traffic to and from the highways to the storage facilities, but even now, our light travelled roads are getting destroyed because itâ&#x20AC;&#x2122;s hard to push the industry.

If they have some ownership into that road other than just taxes â&#x20AC;&#x201C; because thatâ&#x20AC;&#x2122;s what we hear â&#x20AC;&#x201C; â&#x20AC;&#x2DC;Iâ&#x20AC;&#x2122;ll just put it on taxes,â&#x20AC;&#x2122; yet we get phone calls asking why our taxes are going up. ɸ Page B8

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Éş Page B7 I think if they actually put some major dollars into that road youâ&#x20AC;&#x2122;re going to make sure that thing is not going to get wrecked.

PN: What it the status of TORQâ&#x20AC;&#x2122;s project as of Aug. 27?

Whitfield: Right now they have bought a quarter of land, and if they get the development permit they have the right to purchase another half section.

The development

agreement is pending on the road agreement. We are still waiting on some governmental reviews.

The Water Security Agency hasnâ&#x20AC;&#x2122;t got us any information as far as flooding issues up there because it is being built on bit of a low lying area.

The road one is key.

We are waiting on our engineer to get some more dollar figures that we can present to TORQ. There are templates.

PN: Are you optimistic that you can work out an acceptable road improvement

agreement soon?

Whitfield: We are all trying to work toward a goal that is best for the community.

There are seven residents on that road.

To get that volume of traffic with the dust that it entails, I think itâ&#x20AC;&#x2122;s got to be attained to now. Itâ&#x20AC;&#x2122;s tougher to get later.

This is going to be a step up. Thereâ&#x20AC;&#x2122;s definitely going to have to be some of different cost sharing going on with the other companies.

Thatâ&#x20AC;&#x2122;s a negotiation that will have to go in place. ɸ Page B9

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707,305, 5,>: 6J[VILY Éş Page B8 If we can get all parties in â&#x20AC;&#x201C; there are some government grants, but it all ties into the co-operation of everybody. It will make it cheaper for everybody if everybody comes together.

PN: Is Pipeline Rd the busiest oilfield road in the RM? Whitfield: No. Weâ&#x20AC;&#x2122;ve got the Hopedale Road and Gleneath Road a few miles south of the Hopedale Road. There again, thereâ&#x20AC;&#x2122;s five residents living there.

Those two roads are already carrying at times 400 to 500 trucks a week one way. Thatâ&#x20AC;&#x2122;s 1,000 trucks between the two of them.

On the Hopedale Rd, we already had an engineering firm out in the winter to build it to super grid status.

Itâ&#x20AC;&#x2122;s got to go to Inter Pipe. This is all the traffic coming from municipalities to the west.

Itâ&#x20AC;&#x2122;s a corridor road that matches up to the RM of Winslow so weâ&#x20AC;&#x2122;re gearing up to build that up to super grid status with the ability to pave.

Winslow is getting some projects

over there and Kindersley has two or three just south of us. Weâ&#x20AC;&#x2122;re right in the corner collecting all the traffic.

Trying to get the tax base just from our little group is not fair to build those roads up to the status that they need to be.

Weâ&#x20AC;&#x2122;re constantly in negotiations with the companies that are using it.

Most of them are being pretty good.

Theyâ&#x20AC;&#x2122;re coming to us with agreements that they use in other jurisdictions.

PN: What is the importance of having a development plan in place?

Whitfield: Now you can sit down with companies â&#x20AC;&#x201C; itâ&#x20AC;&#x2122;s a pretty standardized thing. Itâ&#x20AC;&#x2122;s nothing new.

Thereâ&#x20AC;&#x2122;s lot of municipalities that have got the same regulations going in, so itâ&#x20AC;&#x2122;s fair for municipalities and companies coming in.

PN: Do you do a lot of driving on these roads yourself as a farmer and a reeve?

Whitfield: I live about two miles from the Hopedale Rd. I drive on them every day pretty much. I drive a school bus, so I actually drive most of the roads here, so I know what most

of the traffic is like.

It costs a lot of money to keep these roads up. Itâ&#x20AC;&#x2122;s not like youâ&#x20AC;&#x2122;ve got any cash floating around. Every dollar is accounted for.

PN: What are those road agreements based on?

Whitfield: Weights and numbers.

We can put weight restrictions during the road ban season. Thatâ&#x20AC;&#x2122;s what we

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are saying will happen if we donâ&#x20AC;&#x2122;t have a road agreement and build a proper road.

Weâ&#x20AC;&#x2122;ll just have to restrict it to light traffic during heavy rains. Spring road restrictions will be there.

I think itâ&#x20AC;&#x2122;s to the benefit of a company to put in an all-weather road, so there not going to be totally held back.

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By Sept. 17 the rig count had risen to 80, but just a week before it was hovering in the 65 to 70 range. Thatâ&#x20AC;&#x2122;s down substantially from the same time last year, when there was a mid-September peak of approximately 85 rigs working.

In 2011, the year floods dramatically impacted operations in southeast Saskatchewan, the rig count through the latter-half of August and first half of September ran in the 110 rig range. It peaked that year on Aug. 22 at 122 active rigs.

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/LJKW RLO MXQLRU VKRSV LQ $OEHUWD Calgary â&#x20AC;&#x201C; Why spend money exploring for oil when you can buy a working interest in producing wells?

Thatâ&#x20AC;&#x2122;s the tactic chosen by Blackdog Resources Ltd. that expects to complete a $13 million acquisition of two separate light oil properties from two vendors in Northern Alberta in October.

The Calgary-based junior oil and gas company that is focused on light oil production from southeast Saskatchewan and Alberta is purchasing the properties in two different locations from a public and private seller.

The two Alberta properties currently produce between 260-275 barrels of oil equivalent per day. â&#x20AC;&#x153;Blackdog is very pleased to have identified and negotiated deals on both of these high quality light oil properties,â&#x20AC;? said company president David Corcoran in a Sept. 3 announcement. â&#x20AC;&#x153;The company believes that by assembling multiple producing light oil properties with reduced risk but additional running room for growth and excellent financial metrics, it will be able to attract required funding from financial institutions and investors and enhance shareholder value. â&#x20AC;&#x153;The successful closing of these acquisitions would cause Blackdog to become a larger entity with higher rates of production, stronger cash flows and reserves and provide a clear roadmap for future growth.â&#x20AC;?

The first property is being acquired from a publicly-traded company that will give Blackdog a 25 to 50 per cent working interest in both operated and non-operated wells.

The oil produced at the first properties comes from the Granite Wash, Gilwood and Slave Point formations.

Blackdog said the oil from the property is high quality and demands prices very close to Edmonton Par pricing.

The company has identified multiple low-cost, low-risk re-entries into existing well bores where it expects to yield high returns for low capital investment.

Blackdog will also acquire a six per cent, non-operated working interest in an emerging light oil play in northern Alberta from a private seller.

The full six per cent working interest covers over 300 sections of land, all facilities, and pipelines, seismic and other associated assets.

The production at this property is also high quality Gilwood oil that demands prices very close to Edmonton Par pricing.

The privately owned property currently has over a dozen producing wells, with all wells tied into pipelines for both oil and water shipping and disposal.

The property is fully electrified, resulting in very low operating costs. More than 30 possible future drilling locations have been identified by the operator.

Both acquisitions are subject to due diligence, financing, board approval by both parties and the completion of purchase and sale agreements, as well as approval by the TSX Venture Exchange.

Blackdog intends to announce the details of the proposed financing for the acquisitions shortly.

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Â&#x201E; By Geoff Lee

(GPRQWRQ Âą Revamp Industries in Edmonton is plugged into a growth market for their core design, build and install electrical packages for conventional hydraulic and diesel electric drilling rigs.

Sales are also on the rise for their turnkey electric packages for rig carriers, mud tanks, doghouses and rig retrofits, and equipment upgrades. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re swamped. We are working on three rig packages at the same time right now,â&#x20AC;? said manager Jason Brown at the Edmonton office. â&#x20AC;&#x153;It looks like we could have two more in by 2014 thatâ&#x20AC;&#x2122;s going to bring a lot more projects. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;ve been working with our customers to give them the right price and the highest quality we can, so they come back.â&#x20AC;?

Orders are also coming in from rig operators who are upgrading their conventional rigs with electric top drives in order to stay competitive. â&#x20AC;&#x153;It seems to be the trend that the oil companies want to see in the field.

Thatâ&#x20AC;&#x2122;s the biggest change weâ&#x20AC;&#x2122;ve seen,â&#x20AC;? said Brown. â&#x20AC;&#x153;With a more efficient top drive, they can drill the wells faster and more efficiently.â&#x20AC;?

A typical Revamp turnkey electrical package for a mechanical rig can cost up to $500,000 and up to $2 million for an electric rig as top drive technology leads the industry.

A top drive is a hydraulic or electric motor suspended in the derrick (mast) of a drilling rig, which rotates the drill string and bit to enable the drilling of the wellbore.

It is located at the Ć?Ç Ĺ?Ç&#x20AC;Ä&#x17E;ĹŻ place and allows a vertical movement up and down the derrick.

This is different from the more conventional rotary table and kelly method of turning the drill string because it enables drilling to be done with three joint stands instead of single joints of pipe.

A top drive allows drillers to quickly engage and disengage pumps or the rotary while removing or restringing pipe.

Revampâ&#x20AC;&#x2122;s electrical packages for conventional rigs include pipe handling equipment operated by a remote control unit. â&#x20AC;&#x153;On pipe handling equipment, you have basically a high voltage panel which feeds a high voltage motor running a hydraulic system,â&#x20AC;? said Marc Bouclin, operations manager. â&#x20AC;&#x153;Then you have a separate control panel with low voltage which incorporates a radio controlled unit. The rig personnel can operate the equipment via remote control from the drill floor. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s a fully automated system, electric over hydraulic, on the catwalk unit.â&#x20AC;?

Electric rigs require more complex control systems using programmable logic controls (PLC) in the drillerâ&#x20AC;&#x2122;s cabin where the driller can control all of the operations. â&#x20AC;&#x153;He can pretty much control his whole rig from his control centre via PLCs and the drill console,â&#x20AC;? said Bouclin. â&#x20AC;&#x153;The electric drilling rigs would have a full PLC control package.â&#x20AC;?

Mechanical or conventional rigs, on the other hand, usually have a diesel engine running all of the big loads, the pumps and the drawworks.

An electric rig uses diesel generated power as well, but it has a large electric AC motor driven by the variable frequency drive (VFD) to run the drawworks and the pumps and other equipment.

Revamp offers turnkey custom panel building for electric rigs, including power distribution, generator, PLC and motor starter controls. â&#x20AC;&#x153;We do a full design build on the electrical package â&#x20AC;&#x201C; all the motor control, all the placement of the equipment and the design of the panels,â&#x20AC;? said Brown, who is a Red Seal master electrician. â&#x20AC;&#x153;We have a technologist on staff that does all the control drawings â&#x20AC;&#x201C; any of the PLC programming and such. â&#x20AC;&#x153;We do complete installation of all of our electrical equipment â&#x20AC;&#x201C; mostly turnkey packages whereby the customer comes to us â&#x20AC;&#x201C; we build the rig, and they basically turn the key and start drilling.â&#x20AC;? ɸ Page B14

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5HYDPS DJJUHVVLYHO\ H[SDQGLQJ Éş Page B13 Revampâ&#x20AC;&#x2122;s designbuild electrical packages include communication systems, expandable camera systems and radio controlled hydraulic control systems.

Revamp does installations on site utilizing three mobile workshops.

They also have two service trucks, a shop where they build panels and a main office with limited workshop space. â&#x20AC;&#x153;We are definitely looking to expand. We are looking at possibly

moving into a new, bigger shop out in the Nisku area,â&#x20AC;? said Bouclin. â&#x20AC;&#x153;I think we are going to constantly expand as long as the demand is there. â&#x20AC;&#x153;We are very aggressive. We are out looking for new customers all the time. â&#x20AC;&#x153;We pride ourselves on quality work, working closely with the customer to make sure both parties are happy at the end of the day and they have a rig that is working in the field and doesnâ&#x20AC;&#x2122;t require any

service.â&#x20AC;?

Revamp is the prime electrical contractor for two of the biggest drilling rig manufacturers in Western Canada where the oilfield economy is booming. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s starting to boom even a little more,â&#x20AC;? said Brown. â&#x20AC;&#x153;Thereâ&#x20AC;&#x2122;s talk about the fourth quarter being the quarter of the year, so we can see more customers coming our way or some more packages for our existing customers.â&#x20AC;?

12: 23(1

)25 %86,1(66 HARVEY KING: Call 306-634-9888 Owner/President SALES: Call 306-634-7212

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

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Revamp has nine employees on staff, including Brown and Bouclin, who own the business and juggle project management, customer relations and purchasing roles.

Their company also designs, builds and installs specialized equipment and transformers and generates a steady flow of work recertifying drilling rigs with 1,000 days of operating time. â&#x20AC;&#x153;They basically have to go over the complete rig and get it running back to the standards that it was when we built it originally,â&#x20AC;? said Brown. â&#x20AC;&#x153;Right now, we are seeing rigs coming in from 2008 when they were built, and doing ZÄ&#x17E;Ç&#x20AC;Ä&#x201A;ĹľĆ&#x2030; /ĹśÄ&#x161;ĆľĆ?Ć&#x161;Ć&#x152;Ĺ?Ä&#x17E;Ć? Ć&#x2030;Ć&#x152;Ĺ˝Ç&#x20AC;Ĺ?Ä&#x161;Ä&#x17E;Ä&#x161; Ä&#x201A; Ä?ŽžĆ&#x2030;ĹŻÄ&#x17E;Ć&#x161;Ä&#x17E; Ä&#x17E;ĹŻÄ&#x17E;Ä?Ć&#x161;Ć&#x152;Ĺ?Ä?Ä&#x201A;ĹŻ Ć&#x152;Ä&#x17E;Ć&#x161;Ć&#x152;ŽĎĆ&#x161; their recertifications. Ć&#x161;Ĺ˝ Ć&#x161;Ĺ&#x161;Ĺ?Ć? &Ĺ˝Ç&#x2020; Ä&#x161;Ć&#x152;Ĺ?ĹŻĹŻĹ?ĹśĹ? ZĹ?Ĺ? ĎąÍ&#x2022; Ä&#x201A;Ĺś Ä&#x17E;ĹŻÄ&#x17E;Ä?Ć&#x161;Ć&#x152;Ĺ?Ä? Ć&#x161;Ć&#x152;Ĺ?Ć&#x2030;ĹŻÄ&#x17E; Ć&#x152;Ĺ?Ĺ?Í&#x2DC; â&#x20AC;&#x153;We do a little bit of service rig equipment WĹ&#x161;Ĺ˝Ć&#x161;Ĺ˝ Ć?ĆľÄ?ĹľĹ?ĆŠÄ&#x17E;Ä&#x161; as well. We are seeing a lot lighting retrofits you have to be the first installing some demo out in the field to LED to jump on them and units in the field to technology. get it out there.â&#x20AC;? prove their ability to exâ&#x20AC;&#x153;Technology is Revamp recently tend the life of lead acid changing all the time, made a substantial batteries with a constant especially in such a sale of its solar powtrickle charge. competitive industry ered Rigcharge battery â&#x20AC;&#x153;We expect to like the drilling industry. maintenance system in see higher sales in the â&#x20AC;&#x153;Thereâ&#x20AC;&#x2122;s new techAustralia. upcoming year,â&#x20AC;? said nologies come up and The company is also Brown.

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:DUP OLNH JUDQGPD V HOHFWULF EODQNHW noted testing was done last year for the oilfield design for the blanket, and some modifications were made.

As demonstrated by IEI lead electrician Bryce Siwy in the Weyburn field, it takes mere seconds to put on or take off a Powerblanket from a pressure transmitter. Often there are two of these transmitters on a well, and as with any oilfield tool, they require maintenance. Simply pull off the hook-and-loop fastener >Ä&#x17E;Ä&#x201A;Ä&#x161; Ä&#x17E;ĹŻÄ&#x17E;Ä?Ć&#x161;Ć&#x152;Ĺ?Ä?Ĺ?Ä&#x201A;Ĺś Ć&#x152;Ç&#x2021;Ä?Ä&#x17E; ^Ĺ?Ç Ç&#x2021; Ĺ?ĹśĆ&#x161;Ä&#x201A;ĹŻĹŻĆ? Ä&#x201A; Í&#x17E;WĹ˝Ç Ä&#x17E;Ć&#x152;Ä?ĹŻÄ&#x201A;ŜŏÄ&#x17E;Ć&#x161;Í&#x; ŽŜĆ&#x161;Ĺ˝ Ä&#x201A; Ç Ä&#x17E;ĹŻĹŻĹ&#x161;Ä&#x17E;Ä&#x201A;Ä&#x161; Ć&#x2030;Ć&#x152;Ä&#x17E;Ć?Ͳ covers, and off it comes. Thereâ&#x20AC;&#x2122;s even a circular sight hole and cover to inspect the Ć?ĆľĆ&#x152;Ä&#x17E; Ć&#x161;Ć&#x152;Ä&#x201A;ĹśĆ?ĹľĹ?ĆŠÄ&#x17E;Ć&#x152;Í&#x2DC; >Ĺ?ĹŹÄ&#x17E; Ä&#x201A;Ĺś Ä&#x17E;ĹŻÄ&#x17E;Ä?Ć&#x161;Ć&#x152;Ĺ?Ä? Ä?ĹŻÄ&#x201A;ŜŏÄ&#x17E;Ć&#x161; instrumentâ&#x20AC;&#x2122;s display.

That doesnâ&#x20AC;&#x2122;t mean the entire installation process is that simple, however. ĆľĆ?Ä&#x17E;Ä&#x161; Ć&#x161;Ĺ˝ ĹŹÄ&#x17E;Ä&#x17E;Ć&#x2030; Ç&#x2021;Žƾ Ç Ä&#x201A;Ć&#x152;Ĺľ Ĺ?Ĺś Ç Ĺ?ĹśĆ&#x161;Ä&#x17E;Ć&#x152;Í&#x2022; Ć&#x161;Ĺ&#x161;Ĺ?Ć?

Most wells arenâ&#x20AC;&#x2122;t set up for the 120-volt power the Powerblanket requires. ThereÄ&#x17E;Ä&#x201A;Ć?Ĺ?ĹŻÇ&#x2021; Ć&#x152;Ä&#x17E;žŽÇ&#x20AC;Ä&#x201A;Ä?ĹŻÄ&#x17E; Ä&#x161;Ä&#x17E;Ç&#x20AC;Ĺ?Ä?Ä&#x17E; Ć&#x2030;Ć&#x152;Ä&#x17E;Ç&#x20AC;Ä&#x17E;ĹśĆ&#x161;Ć? Ĺ?ĹśĆ?Ć&#x161;Ć&#x152;ƾͲ fore a 480-volt to 120 volt transformer and secondary panel must be installed, ĹľÄ&#x17E;ĹśĆ&#x161;Ä&#x201A;Ć&#x;ŽŜ ĨĆ&#x152;Ä&#x17E;Ä&#x17E;Ç&#x152;Ä&#x17E;ͲƾĆ&#x2030;Í&#x2DC; WĹ&#x161;Ĺ˝Ć&#x161;Ĺ˝Ć? Ä?Ç&#x2021; Ć&#x152;Ĺ?Ä&#x201A;Ĺś Ĺ?ĹśÄ?Ĺ&#x161;ƾŏ along with a GFI breaker. A plug-in stand must be put in near the wellhead. All of this must be done to explosion-proof standards.

Estevan, Goodwater â&#x20AC;&#x201C; When grandma needs to warm up during a cold â&#x20AC;&#x153;Any well with pressure transmitters could benefit,â&#x20AC;? Siwy said. winterâ&#x20AC;&#x2122; night, thereâ&#x20AC;&#x2122;s nothing like a good, warm electric blanket to do the trick. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s a patented solution, the first of its kind,â&#x20AC;? said Richard Henning, IEIâ&#x20AC;&#x2122;s Thatâ&#x20AC;&#x2122;s essentially what Industrial Electric & Instrumentation is doing with a new general manager for instrumentation, adding has been two years in the making. product it has just cooked up and is now deploying in the Weyburn Unit. This winter, hundreds of pressure transmitters are going to be toasty warm, with their own electric blankets.

The â&#x20AC;&#x153;Powerblanketâ&#x20AC;? is a heated blanket meant for oilfield instrumentation applications. Originating from a client request, IEI co-designed and began carrying the product for Western Canada. They worked with Salt Lake City-based Powerblanket for an oilfield application, creating a Class I, Division II certified product to be safe in that regard. They are also looking at Class I, Division I solu5HJLQD 6DVN tions.

The blankets can be used for items like transmitters, valves or actuators. â&#x20AC;&#x153;We can heat anything,â&#x20AC;? said Geoff White, IEIâ&#x20AC;&#x2122;s electrical general manager.

When these instruments freeze up, the well could shut down, or in other 6NLG VKDN RIILFH situations, not shut down when it is supposed to. A steamer truck often has to be brought in to deal with a frozen instrument. :DVKURRP XQLWV The blanket is made of an insulated nylon cover, with an alloy to reflect heat.

There is a heating element as well, but how it works is proprietary. These blankets Â&#x2021; ¡ [ ¡ Â&#x2021; ¡ [ ¡ can be customized for certain applications. In their commercial applications, Â&#x2021; ¡ [ ¡ Â&#x2021; ¡ [ ¡ Powerblanket makes drum, bucket, pipe, tote and other sundry warmers.

The conventional way of fighting instrumentation freeze-up is through heat trace wires and insulation. However, when maintenance is done, these must be stripped off and re-installed. ,I LWÂŞV QRW KDUG White pointed out, â&#x20AC;&#x153;It never goes back on the same.â&#x20AC;?

LWÂŞV MXVW D VKDFN IEI worked with Powerblanket to come up with an oilfield solution. White

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• We have units that have been operating for over 50 years and still pumping (Only Sentry & one other supplier can make that Statement) • In southwest Manitoba near Wascada you can find a number of model 57 Sentry designed pumping units that were built in 1966 and 47 years later these units are still pumping.

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5HY (QHUJ\ IDE VKRS JRHV YLUDO Â&#x201E; Story and photos by Geoff Lee Kerrobert â&#x20AC;&#x201C; An oilfield work boom is going viral in the Kerrobert region, with no cure in sight.

The symptoms are constant phone ringing, hand wringing, and excited talk about employee and housing shortages in the area where oilfield and construction work is booming.

Rev Energy Services Ltd.â&#x20AC;&#x2122;s welding shop has caught the bug that fired up supervisor Darcy Weber to talk about it in late August as the virus spreads. â&#x20AC;&#x153;Unreal. Itâ&#x20AC;&#x2122;s just unbelievable right now. Itâ&#x20AC;&#x2122;s so hard to find welders nowadays too. They are in high demand right now,â&#x20AC;? he said, with his cellphone frequently buzzing. â&#x20AC;&#x153;We have to pull them out of Alberta, Manitoba â&#x20AC;&#x201C; weâ&#x20AC;&#x2122;re pulling welders out of everywhere to get the job done.â&#x20AC;?

The demand for Rev Energyâ&#x20AC;&#x2122;s piping and structural fabrication and hydro testing work in the shop and in the field continues to ratchet up as their busiest fall season arrives.

The shop is already working flat out, fabricating platforms, stairs and structural steel work for overhead cranes among other jobs. â&#x20AC;&#x153;It is very busy. I canâ&#x20AC;&#x2122;t believe it, weâ&#x20AC;&#x2122;re crazy right now,â&#x20AC;? said Weber. â&#x20AC;&#x153;I canâ&#x20AC;&#x2122;t imagine what itâ&#x20AC;&#x2122;s going to be in a month or two here, because like I said, trying to find welders is just insane right now.â&#x20AC;?

Fortunately, the welding shop has two mobile trucks and has a force of about nine contract welders to share the workload with four employee welders including two pressure welders based at the shop. â&#x20AC;&#x153;We hire on contract welders and do whatever we can do from there,â&#x20AC;? said Weber who is responsible for scheduling, quality control and ensuring his employees work safely in these heady times. â&#x20AC;&#x153;Iâ&#x20AC;&#x2122;ve been working for Rev for about three years now, and itâ&#x20AC;&#x2122;s been nonstop for me and thatâ&#x20AC;&#x2122;s not the way it usually goes,â&#x20AC;? he said. â&#x20AC;&#x153;The last few years have just been crazy. By the look of it, the next three years are going to be the exact same way, if not worse.â&#x20AC;? ɸ Page B18

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ɺ Page B17 Welding and fabrication go hand in hand with Rev Energy’s core oilfield construction, maintenance and internal and external coatings services.

“Without the welding, we probably wouldn’t get a lot of these jobs. Welding is a big part of what we do right now,” said Weber.

“We do ‘fabing’ anywhere the customer needs it. We’re out there and we are willing to do anything that has to be done to get the job done.”

Weber said being

diversified gives Rev Energy a competitive advantage when it comes to project bidding.

“It’s really hard to bid a job only getting part of the job. Nobody wants just parts – they want it all done in one stop, in one day,” he stressed.

He said company owners Barry Schreiber and Brian Burgardt are doing a good job of providing a wide range of oilfield services that require fabrication.

“That’s the whole plan – to have a little bit of everything, and we can service pretty much anyone around this area,” he said.

Weber is stoked by the news that TORQ

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Transloading Inc. plans to construct a $100 million rail terminal near Kerrobert, but he doesn’t know how he’ll find more welders if his shop secures some of the fabrication work.

“I don’t know if we can even handle that – to try to find men right now is just unbelievable, “he said.

“We’re pulling guys out of B.C. – we’re pulling guys out of Alberta; we’re pulling guys from everywhere.

“We’re trying to make the customers as happy as possible. We don’t just work for one oilfield company. We’ve got like eight or nine that we are working for at this time. ɸ Page B19

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707,305, 5,>: 6J[VILY Éş Page B18 â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;ve probably picked up four times from last year.â&#x20AC;?

Weber said the fight for welders and experienced hands isnâ&#x20AC;&#x2122;t getting any easier with the ongoing construction of the $23 million Kerrobert and District Integrated Health Centre. â&#x20AC;&#x153;Thereâ&#x20AC;&#x2122;s too much competition out there, but again, to try and find a hotel around here in Kindersley or Coleville â&#x20AC;&#x201C; anywhere â&#x20AC;&#x201C; my kids are all living at my place since they canâ&#x20AC;&#x2122;t find a place to live,â&#x20AC;? he said. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s insane. What is out there is costing them a fortune to have.â&#x20AC;?

Weber said the boom is great for Kerrobert and Coleville, where he lives, but trying to find accommodations for new workers is tough sledding. â&#x20AC;&#x153;Whatever room you have in your house, theyâ&#x20AC;&#x2122;re using them up â&#x20AC;&#x201C; itâ&#x20AC;&#x2122;s always good to have the work coming in. â&#x20AC;&#x153;Some days you donâ&#x20AC;&#x2122;t want to get out of bed, but the next day you have to get back in there because it just keeps the company rolling.â&#x20AC;?

The Rev Energy welding shop is strengthening its position in the market by working toward becoming a Canadian Welding Board or CWB certified shop.

CWB certiďŹ cation helps a company establish and maintain well defined processes that save time and control costs. â&#x20AC;&#x153;We are just on the verge right now of getting CWB certified. It takes a little bit of time,â&#x20AC;? said Weber. â&#x20AC;&#x153;We have welders that are CWB certified already, but our shop has to be to make everything work out properly.â&#x20AC;?

The Rev Energy welding shop currently has a solid quality control program for manufacturing and repairing pressure piping and vessels for carbon and stainless steel welding.

Their quality control manuals are registered in Saskatchewan and Alberta, where most of their fabrication work is conducted.

Fabrication is based out of two separate shops, but the plan is to eventually relocate to the site of their new facility that fronts Highway 21, and houses their construction and coatings divisions.

The welding shop has been providing some pipe support for Rev Energyâ&#x20AC;&#x2122;s civil construction crews who began work weeks ago to replace water mains along Pacific Avenue, the Highway 51 thoroughfare through Kerrobert.

Heavy oilfield traffic rumbles through that route hourly as a part of the busy Lloydminster to Kindersley oil transportation corridor that Weber said is helping communities out. â&#x20AC;&#x153;As you can see, we are rebuilding streets â&#x20AC;&#x201C; thereâ&#x20AC;&#x2122;s houses are getting built all over the place. â&#x20AC;&#x153;Everything is just booming right now. Itâ&#x20AC;&#x2122;s a great thing,â&#x20AC;? he said.

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NEW 108 Perkins St.

LOCATION:

Estevan, SK

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PLAINSMAN PRODUCTION EQUIPMENT Plainsman Manufacturing Inc. has been supplying the Saskatchewan Oil & Gas market for the past 47 years. Plainsman supplies blowout preventers, stufďŹ ng boxes, back pressure regulators, ďŹ&#x201A;ow tees, rod rotators and much more. Our Inside Sales team is available to process any of your requests or contact our Saskatchewan Sales Representative Tonya at tmokelki@plainsmanmfg.com.

Visit plainsmanmfg.com for more information!

Production Equipment

dKZY dĆ&#x152;Ä&#x201A;ĹśĆ?ĹŻĹ˝Ä&#x201A;Ä&#x161;Ĺ?ĹśĹ? ĹŻĹ˝Ä?Ä&#x201A;Ć&#x161;Ä&#x17E;Ä&#x161; ŽŜ ĹŻÄ&#x201A;ĹśÄ&#x161; ĹŻÄ&#x17E;Ä&#x201A;Ć?Ä&#x17E;Ä&#x161; ĨĆ&#x152;Žž EĹ˝Ć&#x152;Ć&#x161;Ĺ&#x161; tÄ&#x17E;Ć?Ć&#x161; dÄ&#x17E;Ć&#x152;ĹľĹ?ĹśÄ&#x201A;ĹŻ Ĺ?Ĺś hĹśĹ?Ć&#x161;Ç&#x2021; Ç Ä&#x201A;Ć? Ä?Ä&#x201A;Ć&#x2030;Ä&#x201A;Ä?ĹŻÄ&#x17E; ŽĨ Ć?Ĺ&#x161;Ĺ?Ć&#x2030;Ć&#x2030;Ĺ?ĹśĹ? ĆľĆ&#x2030; Ć&#x161;Ĺ˝ Ď°ĎŹ Ć&#x152;Ä&#x201A;Ĺ?ĹŻÄ?Ä&#x201A;Ć&#x152;Ć? Ä&#x201A; Ä&#x161;Ä&#x201A;Ç&#x2021; Ć?Ä&#x17E;Ć&#x152;Ç&#x20AC;Ä&#x17E;Ä&#x161; Ä?Ç&#x2021; E Ć&#x152;Ä&#x201A;Ĺ?ĹŻ Ĺ?Ĺś Ć&#x2030;Ć&#x152;Ĺ?ĹŻ ĎŽĎŹĎ­ĎŽÍ&#x2DC; tĹ&#x161;Ä&#x17E;Ĺś Ä&#x17E;Ç&#x2020;Ć&#x2030;Ä&#x201A;ĹśĆ?Ĺ?ŽŜ Ĺ?Ć? Ä?ŽžĆ&#x2030;ĹŻÄ&#x17E;Ć&#x161;Ä&#x17E; Ć&#x161;Ĺ&#x161;Ĺ?Ć? ĨÄ&#x201A;ĹŻĹŻÍ&#x2022; Ć&#x161;Ĺ&#x161;Ä&#x17E; Ć&#x161;Ä&#x17E;Ć&#x152;ĹľĹ?ĹśÄ&#x201A;ĹŻ Ç Ĺ?ĹŻĹŻ Ĺ&#x161;Ä&#x201A;Ç&#x20AC;Ä&#x17E; Ä&#x201A; Ä?Ä&#x201A;Ć&#x2030;Ä&#x201A;Ä?Ĺ?Ć&#x161;Ç&#x2021; Ć&#x161;Ĺ˝ Ć?Ĺ&#x161;Ĺ?Ć&#x2030; Ä?Ć&#x152;ĆľÄ&#x161;Ä&#x17E; ŽŜ ĆľĆ&#x2030; ĨŽĆ&#x152; Ď­ĎŽĎŹ Ä?Ä&#x201A;Ć&#x152; ƾŜĹ?Ć&#x161; Ć&#x161;Ć&#x152;Ä&#x201A;Ĺ?ĹśĆ? Ć&#x;Ä&#x17E;Ä&#x161; Ĺ?ĹśĆ&#x161;Ĺ˝ E Ä&#x201A;ĹśÄ&#x161; W Ć&#x161;Ć&#x152;Ä&#x201A;Ä?ĹŹĆ?Í&#x2DC; &Ĺ?ĹŻÄ&#x17E; WĹ&#x161;Ĺ˝Ć&#x161;Ĺ˝

Â&#x201E; By Geoff Lee Unity â&#x20AC;&#x201C; TORQ Transloading Inc. will be the only one of three crude-by-rail companies in Unity tied into Canadian National and Canadian Pacific rail networks this fall when facility expansion is complete.

TORQâ&#x20AC;&#x2122;s competitors Altex Energy and Savage currently operate exclusively on respective CN and CP mainline tracks in town. â&#x20AC;&#x153;Our primary objectives are providing our customers efficiency through scale, supporting our local crude oil producers with the ultimate in downstream market flexibility and access to premium prices for their products,â&#x20AC;? said TORQ Transloading chief executive, Jarrett Zielinski.

The expansion of the Unity Rail Terminal announced on Aug. 20 will provide TORQ and its crude-by-rail customers with dual access to both of CN and CP rail networks. â&#x20AC;&#x153;Unity, Saskatchewan is a strategic geographic location for TORQ and our customers, given the nature of the heavy crude oil production in this area and its proximity to end user destinations,â&#x20AC;? said Zielinski.

TORQâ&#x20AC;&#x2122;s expansion on land leased from North West Terminal currently served by CN will tie into the CP line about one kilometre to the north.

CN and CP crews have been working on the project for several months. â&#x20AC;&#x153;The municipality is excited about it. Not just for what it means today but for the future of the community,â&#x20AC;? said Unityâ&#x20AC;&#x2122;s economic development officer, Carey Baker.

The expansion will include storage tanks and multiple additional tracks that will triple heavy crude shipments from 40 cars per day to unit trains of up to 120 cars.

The segregated operational storage component of the expansion is being phased in, based on customer demand and will be similar to what Altex and Savage offer on their sites.

TORQâ&#x20AC;&#x2122;s rail terminal will promote larger, more efficient movements of crude-by-rail and enable customers to purchase crude oil storage and participate in diluent backhaul opportunities.

The companyâ&#x20AC;&#x2122;s expansion in Unity comes a year and half after they signed a long-term lease with North West Terminal to build and operate a transloading facility.

News of the expansion and tie-in to CP rail came a week after TORQ reported they plan to build a $100 million crude-by-rail facility near Kerrobert about 60 kilometres south of Unity.

Baker said thereâ&#x20AC;&#x2122;s no doubt his town is transforming into a major transportation hub with crude-by-rail leading the charge. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s a game changer for the face of not just oil, but rail transportation when they started in Unity a year and a half ago,â&#x20AC;? he said. â&#x20AC;&#x153;I donâ&#x20AC;&#x2122;t think the companies even didnâ&#x20AC;&#x2122;t realize it would balloon to what it is today. â&#x20AC;&#x153;TORQâ&#x20AC;&#x2122;s expansion is definitely going to add to our reputation,â&#x20AC;? he added. â&#x20AC;&#x153;The size of their expansion is quite significant. I know it will mean more truck traffic through our community which will contribute to many of our businesses. â&#x20AC;&#x153;There is going to be a need for more employment which will also add to our local economy.â&#x20AC;?

Baker said the TORQ expansion and the operation of Altex and Savage crude-by-rail facilities have helped the town to appreciate the importance of having both rail companies in town. â&#x20AC;&#x153;CP and CN are both a huge part of our community,â&#x20AC;? said Baker. â&#x20AC;&#x153;I donâ&#x20AC;&#x2122;t think itâ&#x20AC;&#x2122;s something the town and the residents realized until these past recent years when grain terminals were built. â&#x20AC;&#x153;Much of the reason why Unity has thrived is because of rail infrastructure. The hotels and restaurants really have benefited from the employees of CP and CN. â&#x20AC;&#x153;They have also contributed to our recreational and cultural infrastructure by donating money and grants.

Itâ&#x20AC;&#x2122;s a huge part of the community that in the past we havenâ&#x20AC;&#x2122;t truly understood or recognized.â&#x20AC;?

Phone: 780-496-9800 â&#x20AC;˘ Fax: 780-463-9800 â&#x20AC;˘ Toll Free: 1-877-448-0586 â&#x20AC;˘ www.plainsmanmfg.com

NOW COMPLETING â&#x20AC;˘ Oil, water and gravel hauling rig-ups â&#x20AC;˘ Castrol Oil dealer for oil changes â&#x20AC;˘ All general maintenance on semiâ&#x20AC;&#x2122;s â&#x20AC;˘ Brakes, drivelines, wiring and accessories

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Kenworth Lloydminster - A Division Of Edmonton Kenworth Ltd. 6101 - 63 Avenue, Lloydminster, AB T9V 3C1 Tel: (780) 871-0950 Fax: (780) 871-0926

2014 Kenworth T370 OilďŹ eld Picker Truck Equipped with: Full Tilt Standard Deck Package with Fassi F155 Knuckleboom Crane, Paccar PX7 300 HP Engine, Allison Automatic Rugged Duty Transmission, Hydraulic Brakes - No Air Endorsement Required, 12k Rated Front Axle and Taperleaf Suspension, 21K Rated Rear Axle and Air Suspension, 11R22.5 Tires - 16 ply , 10 5/8â&#x20AC;? x 5/16â&#x20AC;? Frame Rails, Removable tow hooks in front bumper, 56 Gallon capacity Fuel Tank, Air, Tilt / Telescopic Steering Wheel, Cruise, AM/FM Radio, Power Locks and Powered passenger Window, Vinyl Highback Air Suspension Drivers and Passengers Seats, Projector Style Halogen Headlamps. Stk# 966496

2012 Kenworth T170 Roll-off Truck

2012 Kenworth T170 OilďŹ eld Picker Truck

With

Landscaping Box Equipped with:On-Trux Roll-off Kit with Retractable Stinger (Galvanized Version) comes with Wireless 8 button controls, Paccar PX6 - 280 HP Engine, Allison Automatic Rugged Duty Transmission, Hydraulic Brakes - No Air Endorsement Required, 8K Rated Front Axle and Taperleaf Suspension, 13.5K Axle Rated at 11.5K, 13.5K Rated Taperleaf Rear Suspension, 9 7/8â&#x20AC;? x 1/4â&#x20AC;? Frame Rails, Removable tow hooks in front bumper, 45 Gallon capacity Fuel Tank, Air, Tilt Steering, Cruise, AM/FM Radio, Power Windows and Locks, Kenworth Aero Heated Mirrors, Integral Convex Heated Mirrors, High Back Cloth Air Cushion Seat with Passenger 2 man Cloth Bench, Projector Style Halogen Headlamps. Stk# 956216

Equipped with: Full Tilt Standard Deck Package with Fassi 95 Knuckleboom Crane, Paccar PX6 300 HP Engine, Allison Automatic Rugged duty Transmission, Hydraulic Brakes - No air endorsement needed, 8K Rated front axle and 13.5K rear limited slip axle rated at 11.5K, 13.5K Rated rear taperleaf spring Suspension, 9-7/8â&#x20AC;? x 1/4â&#x20AC;?

Frame Rails, Removeable front tow hooks, 90 gallon fuel capacity, Air Tilt, Cruise, am/fm/CD Radio, Electric powered RH and manual LH windows, Power locks, Heated Mirrors, High back vinyl air suspension drivers seat and high back vinyl passenger toolbox seat. Stk# 956327

2014 Kenworth W900B Cude Hauler Equipped with Full Throttle - Berkley Product pump and air valve controls. Magnum checkerplate 1/2 fenders, Roda positive air shutdown with revguard, Cummins 525 HP engine, Eaton Ultrashift manual 18 speed transmission, 13/2 K Front Widetrack axle with 13.2K Taperleaf Spring Suspension, 46 K Dual heavy wall dana spicer axles with Kenworth AG460 Air Suspension, Full lock-up, 11R24.5â&#x20AC;? Bridgestone tires and Polished aluminum wheels, 10-3/4â&#x20AC;? x 3/8â&#x20AC;? Steel Frame, Holland No-Lube air ďŹ fth wheel, Center mount tow pin, dual fuel tanks - 240 gallon capacity with 7â&#x20AC;&#x2122; HD Straps, Air, Tilt / telescopic steering column, Cruise, Navplus (Includes: Navigation, Bluetooth, Sirius and Diagnostics), Kenworth Premium Diamond Interior package, Sears Ultraleather Seating with air suspension, Espar bunk heater, Cobra, power windows and door locks, Dual lighted and heated mirror and stainless steel sunvisor. Stk# 967452

2014 Kenworth T370 Daycab Mechanics Body Spec Chassis Full Tilt Dominator II Mechanics body with sliding roof and barn doors, interior lights, front and rear work lights, beacon lights, back-up alarm, posi lock system, heavy duty tie down. 10,500 lb Max 6025 crane with lift to 26â&#x20AC;&#x2122; 7â&#x20AC;?, Hydraulic drive reciprocating air compressor 35 CFM @ 100 psi, Paccar PX8 300 HP Engine , Allison 3500 RDS 6 speed with PTO provision, Dana Spicer 14.6K Front axle, Dana Spicer 23K Rear axle with diff lock and Hendrickson HAS230L rear air suspension, Air brakes with ABS, 10 5/8â&#x20AC;? x 5/16 Frame rail with removable front tow hooks, 56 gallon fuel tank, Accuride painted white rims with Goodyear tires front and rear locations, Aerodynamic sloped front hood, Pinnacle cab interior equipped with Kenworth Driver Information Center, A/C, Tilt and telescopic steering wheel, air suspension gauge, am/fm/cd radio, daylight cab door design with peeper window, glove box, High back vinyl air suspension drivers seat and high back vinyl passenger battery box., Heated and polished stainless steel mirrors with convex mirrors, power LH and RH window lifts, Curved glass windshield with stainless steel exterior sun visor, Dual halogen head lamps, Full truck air kit for trailer, May not be exactly as shown. Stk# 964376 0D\ QRW EH H[DFWO\ DV VKRZQ

2014 Kenworth T800 Crude Hauler 2014 Kenworth T800 with 38â&#x20AC;? Sleeper - Equipped with Full Throttle - T&E Outboard Hydraulic Drive Product pump. 1/2 fenders, Roda positive air shutdown with revguard, Cummins 500 HP engine, Eaton stainless steel manual 18 speed transmission, 13.2K Front axle with 13.2K front axle with 13.2K Taperleaf Spring Suspension, 46 K Dual wall dana spicer axles with Kenworth AG460 Air Suspension, Full lock-up, 11R22.5â&#x20AC;? Bridgestone Tires and Polished aluminum wheels, 10-3/4â&#x20AC;? x 3/8â&#x20AC;? Steel Frame, Holland air ďŹ fth wheel, Center mount tow pin, Dual fuel tanks - 200 gallon capacity, Air, Tilt / telescopic steering column, Cruise, AM/FM/CD/Radio, Bluetooth, Kenworth Splendor Interior Package, Kenworth High Back Cloth Drivers Seat with air suspension, Passenger seat high back cloth with toolbox, Cobra, power door locks, Dual lighted and heated mirror and stainless steel sunvisor. Stk# 969085

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By Geoff Lee Vermilion, Alta. – Instrument technician apprenticeship training is on the rise this year at Lakeland College in Vermilion as the demand for trades ratchets up in the oilfield.

“We can’t get enough trades. There’s jobs everywhere. It’s just a matter of how far you want to travel,” said John Klatt, co-chair of trades and technology.

A competitive job market is also making it tough for the campus to hire qualified staff to teach a new third-year level of the four-year instrument technician program that is being offered next spring.

“We are having trouble attracting staff. We are short two technicians right now. That might have a bearing on our third year offering,” said Bert Samuelson, dean of trades and technology.

That class could be cancelled if instructors can’t be found.

“We are working with industry – we are working with Cenovus and going to some local areas to see if we can get some industry support as well, not so much in finances, but in manpower. We’re looking,” said Samuelson.

“It’s the tight job market more than anything. They are in high demand, that’s why our numbers are going up.”

The first second-year instrumentation course being offered from Sept. 4 to Oct. 26 is full and the next class for first year apprentices from Oct. 29 to Dec. 21 is full.

Lakeland’s 16-week pre-employment instrument technician fall course is also full with 18 students and a waiting list.

“We’re the only institution in Alberta that offers the pre-employment instrumentation,” said Eileen Arthur, business industry development co-ordinator.

“We’re seeing students from Calgary and way up north attending. We’ve got people from high school to right off the street.”

The pre-employment certificate includes a four week work placement with industry. ɸ Page B24

^ĞĐŽŶĚ LJĞĂƌ ŝŶƐƚƌƵŵĞŶƚ ƚĞĐŚŶŝĐŝĂŶ ĂƉƉƌĞŶƟĐĞƐ ŽůďLJ ƌŽƐƐĞĂƵ ĨƌŽŵ dĂƌƉŽŶ ŶĞƌŐLJ ŝŶ >ůŽLJĚŵŝŶƐƚĞƌ͕ ůĞŌ͕ ĂŶĚ ƌŝĐ DĂƵƌŝĐĞ ĨƌŽŵ WLJƌĂŵŝĚ ŽƌƉŽƌĂƟŽŶ ŝŶ >ůŽLJĚŵŝŶƐƚĞƌ ŐĞƚ ƐŽŵĞ ƟƉƐ ĨƌŽŵ ŝŶƐƚƌƵĐƚŽƌ dŽĚĚ ĞŵƵůŝŶŝ Ăƚ >ĂŬĞůĂŶĚ ŽůůĞŐĞ ŝŶ sĞƌŵŝůŝŽŶ͘

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,QVWUXPHQW WDFKV LQ KLJK GHPDQG Éş Page B23 Instrumentation technicians are in high demand in the heavy oil industry, where they install, maintain and repair a wide variety of pneumatic, electronic and microcomputer instruments. â&#x20AC;&#x153;The whole idea of instrumentation is process control,â&#x20AC;? said Klatt. â&#x20AC;&#x153;This whole area being oil and gas â&#x20AC;&#x201C; all of the plants and gas wells use that process control. The trade itself is geared for discipline in that. â&#x20AC;&#x153;If you look at Fort McMurray and big projects like Suncorâ&#x20AC;&#x2122;s â&#x20AC;&#x201C; the people they want to work in their control rooms are instrumentation techs, because they do understand the process. â&#x20AC;&#x153;They know how the plant works; they understand the reading of the gauges that a lot of other people canâ&#x20AC;&#x2122;t.â&#x20AC;?

Instruments are used in the industry to measure and control variables such as pressure, flow, temperature, level, motion, force and chemical composition. â&#x20AC;&#x153;In oil and gas, of course, there are a lot of wells. As the technology has gotten better, one of the things that a lot of companies like to do, is to measure what they are actually getting,â&#x20AC;? said Klatt. â&#x20AC;&#x153;Instrument techs will come in and maybe they have a new gas well they set up â&#x20AC;&#x201C; measurement devices to actually read how much gas is coming out of the well and what the composition of the gas is â&#x20AC;&#x201C; those kinds of things. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s the same for plants. Itâ&#x20AC;&#x2122;s all measurement and optimization.â&#x20AC;?

Electrical theory and know-how is also becoming a bigger part of the instrument tech trade, with more instruments being powered by electricity.

â&#x20AC;&#x153;Because of government regulations, you almost need your electrical ticket in order to be able to work alone in some of the provinces,â&#x20AC;? said second-year instructor and electrician Todd Cemulini. â&#x20AC;&#x153;If you have to disconnect a device that is over 24 volts, you need an electrician to disconnect it.â&#x20AC;?

Thatâ&#x20AC;&#x2122;s the route that Corey Alexus is taking as a journeyman electrician who is apprenticing as an instrument technician with Pyramid Corporation while working at a steam-assisted gravity drainage (SAGD) facility in Fort McMurray. â&#x20AC;&#x153;I got into instrumentation because I enjoy how things work because of the extra things we do electrically installing all these transmitters and valves electrically,â&#x20AC;? said Alexus who commutes to campus and Fort Mac from Lloydminster. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s nice to know pneumatically how they work and what kinds of loops are integrated into the system. â&#x20AC;&#x153;Therefore, I understand what is all going on and maybe some of the safety things that come into play when I am working in the field.â&#x20AC;?

The second-year class at Lakeland deals with temperature measurement and process control theory which will help Alexus maintain equipment relating to co-gen and steam generating processes. â&#x20AC;&#x153;I generally work on a lot of level transmitters and pressure transfer switches and vibration probes and all that stuff for motors,â&#x20AC;? he said. ɸ Page B25

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707,305, 5,>: 6J[VILY Éş Page B24 â&#x20AC;&#x153;I also do a little of construction such as tubing and repairs and troubleshooting. Itâ&#x20AC;&#x2122;s a really good site as far as variety â&#x20AC;&#x201C; they have a lot of different brands and valves and stuff â&#x20AC;&#x201C; I work on them too.â&#x20AC;?

Lakelandâ&#x20AC;&#x2122;s instrument training includes lab time with hands-on learning.

That appeals to Alex Van Der Meutter, an apprentice with Noralta Technologies in Provost. â&#x20AC;&#x153;The program is really good. I really like it here. Itâ&#x20AC;&#x2122;s nice hands-on and we have close access to our instructors. They are very willing to help us out after hours,â&#x20AC;? he said.

The opportunity to work with his hands and think on his feet is what drew him into instrumentation after working for another company as a well operator. â&#x20AC;&#x153;That was something that interested me, and I threw an application in with Noralta and they accepted it,â&#x20AC;? he said. â&#x20AC;&#x153;Right now as an apprentice, I generally go around and do some calibrations and checks throughout the facilities that we have. â&#x20AC;&#x153;I run around with the journeymen, and at times I will be sent out on my

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own to do these checks. Mostly itâ&#x20AC;&#x2122;s checking oil battery facilities. â&#x20AC;&#x153;We work for mainly Harvest, Husky and some smaller companies that we also deal with.â&#x20AC;?

Keeping up with evolving technology is a part of the job as instruments and processes become more automated all the time. â&#x20AC;&#x153;It seems to be going from standard wired devices to wireless devices. Itâ&#x20AC;&#x2122;s getting more and more integrated all the time,â&#x20AC;? said Cemulini. â&#x20AC;&#x153;The manufacturers want to take advantage of more new technology all the time. It keeps moving ahead. Itâ&#x20AC;&#x2122;s a lot more digital and electronic.â&#x20AC;?

Lakeland is hoping industry will step forward to donate needed equipment and training aids for its labs as enrolment rises. â&#x20AC;&#x153;We need more of everything,â&#x20AC;? said Samuelson with a laugh. â&#x20AC;&#x153;We are trying to make contact with some of our local industry and industry techs to see what kind of support we can get from them. â&#x20AC;&#x153;That support could be in some used equipment or maybe some time from some of their staff to help us build it. We are not sure what we are going to get, but we are doing a little asking.â&#x20AC;?

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3DUDGLVH +LOO SRLVHG IRU EUHDN RXW JURZWK Â&#x201E; By Geoff Lee Paradise Hill â&#x20AC;&#x201C; Farming and oil and gas make the world go around for the 515 residents of the village of Paradise Hill located on busy Highway 3 about 64 kilometres northeast of Lloydminster.

Area wheat farmers are celebrating a bumper fall crop and most businesses are thriving from an active oil and gas sector.

Novlan Bros. Sales has recently been experiencing the best of both worlds with record sales and service business at their Ford and New Holland dealerships. â&#x20AC;&#x153;The oil industry is doing quite well and the farming has been really good to us to the last couple of years,â&#x20AC;? said Randy Novlan, sales manager. â&#x20AC;&#x153;Thereâ&#x20AC;&#x2122;s record crops out there, so everyone is in a hurry to get it off before the fall ends. â&#x20AC;&#x153;Thatâ&#x20AC;&#x2122;s huge. It will put a lot of money into farmersâ&#x20AC;&#x2122; pockets and hopefully, they will upgrade. â&#x20AC;&#x153;Combine sales are great. Machinery sales have been good for the last couple of years.â&#x20AC;? ɸ Page B28

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Éş Page B27 Ford pickup sales and service are also exceptionally strong and keeping pace with the oil and gas activity in the area.

Husky continues to ramp up production at its 3,000 barrels per day Paradise Hill thermal project to the north, while construction of the 3,500 bpd Sandall thermal facility south of the village in nearly complete. â&#x20AC;&#x153;I had probably had one of my best years in pickup sales last year and again this year has been very, very strong,â&#x20AC;? said Novlan.

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â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;ve got a lot of oil activity both north and south of town â&#x20AC;&#x201C; a couple of SAGD plants plus a bunch of oil drilling. â&#x20AC;&#x153;So everything looks quite positive for us. Weâ&#x20AC;&#x2122;ve been doing lots of sales and servicing is very strong. In the last three years, Iâ&#x20AC;&#x2122;ve added three techs â&#x20AC;&#x201C; we canâ&#x20AC;&#x2122;t keep up. â&#x20AC;&#x153;I donâ&#x20AC;&#x2122;t see any reason for it to slow down.

You never know what the price will do, I guess. â&#x20AC;&#x153;It looks like we are getting great returns on our investment on the farming end of things.

That should carry on to next spring.â&#x20AC;?

The strong farming and energy sectors have also filled up the local hotel, the village campground and put the squeeze on available housing. â&#x20AC;&#x153;Thereâ&#x20AC;&#x2122;s been lots of activity, especially with those two big Husky projects. Itâ&#x20AC;&#x2122;s been busy,â&#x20AC;? said Marion Hougham, village administrator. â&#x20AC;&#x153;Thereâ&#x20AC;&#x2122;s a lot of truck traffic around here. â&#x20AC;&#x153;Rental occupancy in town is non-existent.

You canâ&#x20AC;&#x2122;t find a place to stay in town. It seems to be the same in the surrounding area.â&#x20AC;?

The construction of a much needed 12-unit rental townhouse by a private developer is one of several housing projects in stall mode while the community amends its zoning bylaws. â&#x20AC;&#x153;Right now, thereâ&#x20AC;&#x2122;s zoning issues on the property. They demol-

ished the old properties and got that far. I am hoping the development resumes next spring,â&#x20AC;? said Hougham. â&#x20AC;&#x153;We are in the process of revamping our zoning bylaw. Itâ&#x20AC;&#x2122;s taking a lot longer than we ever dreamt that it would.â&#x20AC;?

The townhouse sits on commercially zoned land that needs to become residential.

Similarly, a 12-lot subdivision purchased by the Village within the RM of Frenchman Butte must be rezoned from agricultural to residential before sod can be turned. â&#x20AC;&#x153;We are in the design stages of that, and it is also being held up because of zoning approvals,â&#x20AC;? said Hougham.

The 89 page zoning bylaw amendment has been in the works for two years, but approval of final changes is expected this year from the Saskatchewan Association of Rural Municipalities. â&#x20AC;&#x153;It has been a major challenge. Itâ&#x20AC;&#x2122;s very time consuming. Itâ&#x20AC;&#x2122;s been a long road,â&#x20AC;? said Hougham.

The existing bylaws are outdated and must comply with the Planning and Development Act. The Village has also prepared a new official community plan that is waiting for approval.

The plan will help regulate the development of residential, commercial and industrial land for years to come. ɸ Page B29

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ɺ Page B28 Construction is underway on a new two unit condo in town adjacent to the campground.

The housing crunch made the local campground a popular spot for oilfield workers and one of Novlan’s new workers over the summer.

Novlan has lucked out with a rental house to accommodate four new Filipino mechanics to help keep up with the workload at his service shops.

“Definitely more people would be moving here if we had more housing,” said Novlan.

Young families have been drawn to the community in recent years with strong and consistent enrolment at the K-12 Paradise Hill School.

“I attribute to that to the oil and gas and farming activity around here,” said Hougham.

“There’s a lot of young families in agriculture. A lot of them are dual income. They are running the farm, but have income out of the oilpatch.”

Hougham’s husband, Tom, and his brother Ken operate Y Coulee Land and Cattle and fit the dual income profile. They have two lease operated fluid hauling trucks working for Paradise Oilfield Services.

“It’s hard to make a

living just strictly farming – if you are starting out. The oilfield has certainly created a lot of opportunity for the agriculture sector,” said Hougham.

Novlan runs into the dual income customer at his business all the time and he hope the good times continue to roll with oil and gas jobs.

“We live in a good part of the country.

We’re pretty lucky. A lot of our younger farmers have gone that route and it helps pay the bills,” said Novlan.

“It makes sense to them and it works out quite well – double revenue there.

“Everybody’s busy.

The school is doing well.

We are building a new hall. It’s going to cost a lot of money, but there is money in the area and people are supporting it.”

The community hall is a $4 million project that will be constructed next spring thanks to $2 million in local fundraising, and the balance to be loaned by the RM. “It’s a lot of money for a community of our size,” said Hougham.

“We were hoping to tender this fall, but it’s looking like it’s going to be in the spring.”

The school division is still working on last minute design details and approvals.

The 18,000 square foot hall will provide

a new multi-purpose addition to the school and include a 20 child daycare, a gym, a commercial kitchen and conference and music rooms.

Hundreds of country music fans poured into the village in early August for the annual Summer Bash major fundraiser that added $75,000 to the pot.

Country star George Canyon headlined this year’s show, with the Nitty Gritty Dirt Band on tap next summer.

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By Geoff Lee Vermilion – Vermilion is experiencing an economic boom with the construction start-up of two major pipeline projects transporting heavy oil produced from the Cold Lake area to storage facilities in Hardisty.

Midwest Pipelines Inc. has set up a 150-person camp at Lakeland College in order to house the crews who are constructing the twinned southern section of Enbridge Inc.’s $1.2 billion Athabasca crude oil pipeline.

Work began on spread 3 on Aug. 14 and will wrap up with hydro testing in mid November.

“We are encountering some delays due to bird nesting habitat that seems to have increased with local heavy rainfall,” said Enbridge spokesperson Graham White on Sept. 16.

“Drier weather of late is conducive to crews accelerating daily productivity so we can still meet our stated schedule.”

Midwest currently has 200 employees at the project with up to 500 anticipated at peak.

Crews are also being housed in travel trailers, hotels, motel and local residences.

Inter Pipeline also has crews working in the area on the $100 million expansion of its Cold Lake pipeline system to Hardisty. New pipelines, pump stations and associated infrastructure are also in the works.

The Cold Lake expansion involves the construction of a 240-kilometre 42inch pipeline and associated pumping and metering facilities from La Corey to Hardisty.

The project will provide an additional 550,000 barrels per day of mainline capacity that could be increased to approximately 1.2 million bpd by building additional pumping stations.

Inter Pipeline was to hold a series of public information meetings in Hardisty, Vermilion and Bonnyville from Sept. 24-26 to explain the scope and economic benefits of the project to Vermilion.

Hotel room rentals are already tight with the resumption of classes at the Vermilion campus.

Local restaurants, private room renters and food caterers are having a field day with pipeline crews in town.

“I would say it has had a huge impact on our economy,” said Mary Lee Prior, Vermilion’s economic development co-ordinator.

“I know we’ve had people coming through that can’t get hotels.

“Lakeland College cleared some space and allowed them to set up camp, which is good for the college and good for the town,” said Prior.

The Midwest contractor camp is located on Harcus Road, south of the Vermilion Campus, and crews are expected to be at the site until mid-November.

“When you have a camp like that, they are accessing our fuel services and our catering services for lunches and that type of thing,” said Prior.

“I think it’s a good benefit to Vermilion.” ɸ Page B32

2013 President’s Award We are pleased to announce that the Lloydminster Society of Petroleum Engineers (SPE) section has received the 2013 President’s Award for Section Excellence. Lloydminster was selected as one of the nine winners of this global award.

The President’s Award for Section Excellence recognizes SPE sections who display exemplary efforts in technology dissemination, section operations, member benefits, society and community benefits, and innovation.

The Lloydminster SPE Board would like to thank all of our sponsors for their generous support in helping us achieve this recognition within our industry.

We would also like to acknowledge the support of our volunteers and their companies who encourage industry engagement:

dŚŝƐ ŝƐ ƚŚĞ ƌŽƵƚĞ ŵĂƉ ĨŽƌ ƚŚĞ ƚǁŝŶŶŝŶŐ ŽĨ ŶďƌŝĚŐĞ͛Ɛ ƚŚĂďĂƐĐĂ ƉŝƉĞůŝŶĞ ƚŽ ĐĂƌƌLJ ĂŶ ŝŶŝͲ ƟĂů ϰϱϬ͕ϬϬϬ ďĂƌƌĞůƐ ŽĨ Žŝů ƉĞƌ ĚĂLJ ĨƌŽŵ <ŝƌďLJ >ĂŬĞ͕ ǁŚŝĐŚ ŝƐ ŶŽƌƚŚ ŽĨ ƚŚĞ ŽůĚ >ĂŬĞ ŝƌ tĞĂƉŽŶƐ ZĂŶŐĞ͕ ƚŽ ,ĂƌĚŝƐƚLJ͘ DĂƉ ƐƵďŵŝƩĞĚ

Mark Bacon (Nalco Champion) Denis Blaquiere (NOV) Dustin Fallscheer (BAR Engineering) Hart Golbeck (Alberta Innovates - Technology Futures) Glen Martinka (NOV) Mike McIntosh (Weatherford) Joseph Simon (Northern Blizzard Resources) Shauna Watson (Weatherford)

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9HUPLOLRQ SUH VHOOLQJ FRPPHUFLDO ORWV ɺ Page B31 The new Athabasca pipeline will add 450,000 barrels per day of capacity between Kirby Lake in the Athabasca oilsands to Hardisty. There is also low-cost expansion potential to 800,000 bpd.

The line is expected to be capable of accepting initial volumes by early 2015, with its full initial capacity available by 2016.

Construction crew are expected to rotate in and out of Vermilion for the next two or three years for both projects.

The new Athabasca pipeline line will include approximately 345 kilometres of 36-inch pipeline DŝĚǁĞƐƚ WŝƉĞůŝŶĞƐ /ŶĐ͕͘ Ă ĐŽŶƚƌĂĐƚŽƌ ĨŽƌ ƚŚĞ ĐŽŶƐƚƌƵĐƟŽŶ ŽĨ ŶďƌŝĚŐĞ /ŶĐ͛Ɛ Ψϭ͘Ϯ ďŝůůŝŽŶ ƚǁŝŶŶŝŶŐ ŽĨ ƚŚĞ ƐŽƵƚŚĞƌŶ ƐĞĐͲ largely within the existing pipeline right-of-way. ƟŽŶ ŽĨ ƚŚĞ ƚŚĂďĂƐĐĂ ƉŝƉĞůŝŶĞ͕ ŚĂƐ ƐĞƚ ƵƉ Ă ƚĞŵƉŽƌĂƌLJ ĐĂŵƉ ĨŽƌ ϭϱϬ ǁŽƌŬĞƌƐ Ăƚ >ĂŬĞůĂŶĚ ŽůůĞŐĞ ŝŶ sĞƌŵŝůŝŽŶ͘ ƌĞǁƐ The pipeline will generally follow the existing ĂƌĞ ďƵŝůĚŝŶŐ ƐƉƌĞĂĚ ϯ͘ WŚŽƚŽ ĐŽƵƌƚĞƐLJ >ĂŬĞůĂŶĚ ŽůůĞŐĞ Athabasca pipeline starting at Enbridge’s Kirby Lake terminal near Winifred Lake and ending at the Battle River terminal in Hardisty.

The pipeline route runs about seven kilometres west of Vermilion on Highway 16 between Vermilion and Mannville.

Some of the 36-inch pipe is stockpiled in a field south of Highway 16 near the pipeline route.

The new line is designed to accommodate the need for additional capacity to serve Kirby area oilsands growth, beyond the expansion of the existing 30-inch pipeline to its maximum capacity of 570,000 bpd, which was announced in the fall of 2010.

Transferring existing Kirby area volumes to the new 36-inch line from the existing 30-inch line will also free up the latter to accommodate additional long-haul volumes originating from the Cheecham or Athabasca terminals further upstream on the Athabasca system.

This project is a significant part of Enbridge’s overall plan to provide capacity for rapidly growing production from the Kirby area as well as from growth projects further north in the Athabasca region.

According to Enbridge’s original project announcement made in September 2011, the project is expected to create about 545 person years of employment in building the twin line.

The project will include the construction of new pump stations at the existing Kirby Lake and Bonnyville stations.

The pipeline will also generate tax revenues for communities along the route.

Vermilion is poised for continued growth as oilfield activity and traffic pick up along the busy Highway 16 and Highway 41 corridors.

“Last year we had a bit of seismic to the north of us. There are several exploration companies doing drilling around us towards the west to Mannville and north of us as well,” said Prior.

“We are one of the main routes that goes north and connects to Fort Mac. We have the benefit of being on the intersection of Highways 16 and 41.”

The Town is now pre-selling new commercial lots in a prime 37-acre site they purchased recently for approximately $30,000 an acre.

“It just opened up a week and a half ago. We 6(: are going to be our own developer,” said Prior on Sept. 13.

The land is located on the east side of Highway 41 between the Highway 16 overpass and Tim Hortons.

Council planned to announce lots prices and possibly a new hotel development for the site at its Sept. 17 meeting.

The Town is also selling 21 one-acre lots for $170,000 for medium to heavy industrial uses in a new Yellowhead Business District. Servicing is to precede any site construction.

The lots are located south of the local vet clinic with a view of Highway 16.

There are also eight new one-acre serviced lots for sale beginning at $340,000 in a new East Point Business Park adjacent to the Vermilion airport.

The East Point lots are zoned for light industrial development.

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(QHUJ\ (DVW ZLOO FUHDWH WKRXVDQGV RI MREV Â&#x201E; By Geoff Lee Calgary â&#x20AC;&#x201C; TransCanada Corporationâ&#x20AC;&#x2122;s proposed $12 billion Energy East oil pipeline could create thousands of jobs over a six year development and construction phase.

Most of the jobs over that period will go to Quebec with 3,601 and Ontario with 2,271.

In Saskatchewan, the project could generate 683 jobs and 1,542 in Alberta during the two stages, according to an economic analysis by Deloitte and Touche and released by TransCanada on Sept. 10.

Deloitte estimates the project will generate $10 billion in GDP for Canada during development and construction, with $577 million of that in Saskatchewan and $1.7 billion in Alberta.

The report includes a breakdown of the jobs, economic growth and tax revenue benefits for the six provinces along the pipeline route The economic study estimates 2,300 jobs will be created nationally during the three year development period and 7,700 during the three year construction phase.

There could also be an additional 1,087 jobs created during the 40-year operation of the pipeline, with 94 of those jobs in Saskatchewan and 418 in Alberta.

Energy East would also generate an additional $10 billion in tax revenues for all levels of government over the life of the project including $821 million in Saskatchewan and $2.19 billion in Alberta.

The project is expected to generate an additional $25.3 billion in provincial GDP over the operations phase with $1.9 billion in Saskatchewan and $6.1 billion in Alberta. â&#x20AC;&#x153;With this new

study we now have an objective and a tangible understanding of the full economic benefits that the communities across this country will receive that are directly related to its construction and operation,â&#x20AC;? said TransCanada president Russ Girling during a news conference in Fredericton, New Brunswick.

Deloitte used Statistics Canadaâ&#x20AC;&#x2122;s input and output model which measures direct, indirect, and induced economic effects of large industrial projects in Canada such as Energy East. â&#x20AC;&#x153;Energy East is a critical infrastructure project for all Canadians because it will enhance our countryâ&#x20AC;&#x2122;s energy security, allow us to receive greater value for our important natural resources and will create tangible economic benefits for communities across the country,â&#x20AC;? said Girling.

Deloitte projects Saskatchewan would gain a total of 1,935 direct, indirect and spinoff jobs during the development and construction phases that will include the construction of a shipping terminal at Moosomin.

In Alberta, the project would create 4,873 total direct, indirect and spinoff jobs in the first six years with new terminal facilities to be built at Hardisty where the pipeline would begin.

TransCanada announced on Aug. 1 that it is moving forward with the 4,500 kilometre pipeline after securing commitments from producers to ship 1.1 million barrels of crude a day from Alberta and Saskatchewan to refineries in Eastern Canada. â&#x20AC;&#x153;There has been enormous interest and support since we first floated the Energy East idea more than a year ago and again after we

announced it a month ago,â&#x20AC;? said Girling to the media. â&#x20AC;&#x153;I think thatâ&#x20AC;&#x2122;s because this project makes sense for all Canadians and this new study help us understand why thatâ&#x20AC;&#x2122;s the case.â&#x20AC;?

The project involves converting a portion of TransCanadaâ&#x20AC;&#x2122;s existing 3,000 kilometre Canadian Mainline natural gas pipeline to transport crude, and constructing approximately 1,400 kilometres of new pipeline.

The pipeline will transport crude oil from Western Canada to delivery points in MontrĂŠal, the QuĂŠbec City region and Saint John, New Brunswick, and increase producer access to Eastern Canadian and international markets.

Eastern Canadian refineries currently import more than 700,000 barrels of oil per day, or 86 per cent of their daily needs, from more expensive overseas sources including Saudi Arabia, Nigeria, Venezuela and Algeria.

TransCanada expects oil from Energy East will potentially replace this foreign oil with a more reliable domestic supply from Western Canada.

The company says supplying refineries in QuĂŠbec and New Brunswick with Canadian oil will also support jobs and related positive economic benefits that these facilities provide in local communities.

TransCanada expects to proceed with the necessary regulatory applications for approvals to construct and operate the pipeline project and terminal facilities in early 2014.

Energy East is anticipated to be in service by late-2017 for deliveries in QuĂŠbec and 2018 for deliveries to New Brunswick.

Meanwhile, Trans-

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Canada continues to collect data and engage with Aboriginal and stakeholder groups as part of its initial design and planning work. â&#x20AC;&#x153;Gathering input and answering questions people have about

Energy East is a fundamental first step in our project development process,â&#x20AC;? Girling said. â&#x20AC;&#x153;We are holding dozens of public open houses and meetings with landowners, community groups and gov-

ernment leaders across the country to find out how we can make Energy East the safest, most environmentally responsible pipeline possible, and maximize the benefits it will bring to all stakeholders.â&#x20AC;?

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5HY WKURWWOHV XS IRU IDOO FRQVWUXFWLRQ Caltech to Enbridge, Petrobank and Northern Blizzard,â&#x20AC;? said Schreiber.

On the construction side, Rev Energy has been doing everything lately from well completions to welding and fabricating and sandblasting and coating in the shop and in the field. â&#x20AC;&#x153;We do a lot of integrity digs,â&#x20AC;? added Schreiber, who listed TransGas, Plains Midstream and Enbridge among his pipeline maintenance customers. â&#x20AC;&#x153;Basically you are digging up their pipe and checking their pipe for any kind of corrosion, fixing it, then a lot of times we blast and coat also at the same time. â&#x20AC;&#x153;We are one of the few companies that can do it all because we have the sandblasting and coatings, too.â&#x20AC;?

Rev Energy is also due to wrap up work by October on a $500,000 project to replace water mains and services to homes and businesses along the downtown portion of Highway 51 called Pacific Avenue. â&#x20AC;&#x153;It was a bid. We got it because itâ&#x20AC;&#x2122;s right on our back door,â&#x20AC;? said Schreiber.

The company operates several trackhoes including a grader and a packer on the civil construction project that is overseen by Brian Burgardt who co-owns the business with Schreiber. â&#x20AC;&#x153;We have to locate the mains and sewer and your storm drains, then go ahead and dig and re-tap in the new services,â&#x20AC;? explained Burgardt. â&#x20AC;&#x153;We are replacing the old water copper service lines. We are putting them into poly. Every home has a tie in. Everyone has their own curbside service.â&#x20AC;?

The new water lines are six-inch poly with 3/4-inch poly service lines to homes and businesses.

A larger two-inch service line was connected to the downtown arena which uses a lot of water.

Burgardt noted the project is on schedule thanks in part to warm dry weather since work began earlier in the summer.

Rev Energy has eight employees at the site and 90 on the payroll with all hands on deck. â&#x20AC;&#x153;In this area there has been tons of work. Usually, we have a lull, a slow period in the spring. We never had that at all this year,â&#x20AC;? said Schreiber.

Schreiber is stoked by the prospect of securing some work constructing TORQ Transloading Inc.â&#x20AC;&#x2122;s $100 million crude-by-rail terminal that will be located about 15 kilometres southeast of town.

The 168,000 barrels per day project announced Aug. 14 will be adjacent to Enbridge and Plains Midstream facilities where Rev Energy has done a lot of work. ɸ Page B35

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Â&#x201E; By Geoff Lee Kerrobert â&#x20AC;&#x201C; Rev Energy Services Ltd. is entering the busy fall season in what has already been a busy year for their core oilfield maintenance and construction divisions.

The company is having a banner year for its pipeline construction and repair, welding, facility fabrication, and internal and external coatings services along with its picker trucks. â&#x20AC;&#x153;This is our busiest season. We are flat out right now,â&#x20AC;? said company president Barry Schreiber on Aug. 27, â&#x20AC;&#x153;but usually October and November is our busy season. â&#x20AC;&#x153;Thatâ&#x20AC;&#x2122;s when things rock and roll in the oilfield. Guys are trying to get things done before the snow flies â&#x20AC;&#x201C; things that werenâ&#x20AC;&#x2122;t done during the summer.â&#x20AC;?

Rev Energy has positioned itself as a go-to shop for multiple oilfield services along with its quality control programs for welding fabrication. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;ve been working quite a bit for lots of companies from Penn West to

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Schreiber said Kerrobert is certainly a good place for business with the high level of construction and oilfield investment taking place in the region. â&#x20AC;&#x153;I think at least for the next three years we are going to be busy.

There is a lot of drilling going on. There are a lot of new companies moving in. â&#x20AC;&#x153;Our maintenance end and our civil work have been crazy. Weâ&#x20AC;&#x2122;ve turned down work,â&#x20AC;? he said.

Rev Energy recently added two more trackhoes to its fleet of civil construction equipment that includes a grader, a

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

Cat, and gravel trucks.

Rev Energy does work throughout Alberta, Saskatchewan and Manitoba in all of its growing divisions.

The company is mulling over plans to further expand its new shop in the next couple of years for additional coating and painting equipment. The new facility originally opened in 2011 year with the coatings bay. â&#x20AC;&#x153;We are talking about building another part on it, but it will have to wait for another year or so,â&#x20AC;? said Schreiber.

Having a new facility led the company to move its busy welding

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That meant an expan-

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The town has talked to quite a few developers,â&#x20AC;? he said. â&#x20AC;&#x153;They plan on doing work in Kerrobert.

Hopefully, it happens.â&#x20AC;?

No vacancy signs are the order of the day at most local motels, hotels and at Kelordan camp which provides temporary accommodations for oilfield workers. â&#x20AC;&#x153;The biggest thing is accommodations. A guy could have another 10 guys working, but the accommodations arenâ&#x20AC;&#x2122;t just in Kerrobert,â&#x20AC;? said Schreiber. â&#x20AC;&#x153;There are lots of guys that phone me that would love to come to work for me, but they

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Éş Page B34 â&#x20AC;&#x153;The construction alone will be huge. Iâ&#x20AC;&#x2122;m sure I will get something,â&#x20AC;? said Schreiber who heads the construction maintenance division. â&#x20AC;&#x153;Maybe I wonâ&#x20AC;&#x2122;t get any of the major bids, but Iâ&#x20AC;&#x2122;ll get spinoff. â&#x20AC;&#x153;Who knows, maybe we will able to bid on some of the civil work and stuff.â&#x20AC;?

Schreiber said the TORQ rail terminal would create about 25 full time jobs when itâ&#x20AC;&#x2122;s up and running which will benefit the community. â&#x20AC;&#x153;Most people are pretty pumped because the more Kerrobert grows, the better off we are as a community,â&#x20AC;? he said. â&#x20AC;&#x153;We always want to see people coming into our town, so actually itâ&#x20AC;&#x2122;s been really good.

We know we are going to have a few growing pains, but thatâ&#x20AC;&#x2122;s normal for a smaller town.â&#x20AC;?

Schreiber said the lack of available rental housing in town makes it harder for all companies, including his own, to attract new employees to keep up with the workload. â&#x20AC;&#x153;Thatâ&#x20AC;&#x2122;s our biggest thing â&#x20AC;&#x201C; finding housing even just rental property.

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3LSHOLQH VDIHW\ UHYLHZ PLVVHV PDUN Edmonton â&#x20AC;&#x201C; Alberta Energy will patch up leaks found in its pipeline regulatory system that were identified by a pipeline safety review report that doesnâ&#x20AC;&#x2122;t determine if the pipeline system is safe or if the rules are being enforced.

The independent study was supposed to examine how pipeline integrity is managed, how safety of pipelines crossing waterways is ensured, and how responses to pipeline incidents are handled.

The singular focus on safety regulations in the 900-page report is striking given the report was called for to address pipeline safety after several high profile oil spills in the province in 2012.

The review was commissioned in July 2012 following the accidental dumping of 3,000 barrels of oil into the Red Deer River and a pipeline leak of 5,000 barrels into Rainbow Lake earlier that year.

In 2011, a Plains Midstream pipeline spilled 28,000 barrels of oil in northwestern Alberta.

The government, however, will go ahead and adopt the reportâ&#x20AC;&#x2122;s 17 recommendations to further improve pipeline regulations in Alberta including those pertaining to pipelines near water bodies.

Alberta Energy will also work to provide a clearer definition of what constitutes a water body.

The armâ&#x20AC;&#x2122;s length review was conducted by Group 10 Engineering and included a comparison of regulatory requirements in several other provincial and international jurisdictions.

The study concludes Alberta provides the most thorough overall pipeline regulatory regime of all of the national and international jurisdictions looked at.

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â&#x20AC;&#x153;This review assures Albertans we have a safe system in place, but itâ&#x20AC;&#x2122;s important that we not rest on our laurels,â&#x20AC;? said Minster of Energy Ken Hughes. â&#x20AC;&#x153;As leaders in energy production and regulation, we will make every effort to ensure Albertaâ&#x20AC;&#x2122;s pipeline safety standards continue to be among the best in the world.â&#x20AC;?

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101 Supreme St. (Shand access road)

SERVICE RIG PERSONNEL Class 1A & 3A Preferred Above Industry Wages Benefits Packages Opportunity for Advancement 3OHDVH HPDLO RU ID[ UHVXPH WR

Email: sleibel@suncountrywellservicing.ca Fax 306 634 1200 • Cell 306 421 3418

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Journeymen Electricians and Apprentices PowerTech Industries Ltd. in Estevan is seeking Journeymen Electricians and Apprentices for work in the Estevan and Carnduff areas.

Experience: Safety Certificates are needed.

1st Aid/CPR, H2S. Applicants must have a valid driver’s license. Full benefits packages and RSP plan.

Duties: Day to day electrical construction and maintenance in the oilfield.

Wage/Salary Info: Depending on experience & qualifications.

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To Apply: Fax: (306) 637-2181, e-mail sschoff.pti@sasktel.net or drop off resume to 62 Devonian Street, Estevan, SK.

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PUMPING UNITS

1280 912 640 456 320 228 160 114 80

FULL INSTALLATION SERVICE AVAILABLE!

Large inventory in-stock Call today for a quote!

Phone 403.264.6688 Toll Free 1.888.745.4647 3KRQH

Lloydminster

Provost

Kindersley

Drayton Valley Medicine Hat

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PLATINUM

Energy Services

Separators Treaters Tanks FWKOâ&#x20AC;&#x2122;s Flarestacks Flare Knockouts Bullets Lineheaters Dehydrators Meterskids Pumpskids Gas Sweeteners Compressors and MUCH MORE!!

PRODUCTION TANKS Single Single // Double Double Wall Wall 50 50 bbl bbl to to 2000 2000 bbl bbl

20 Acre Tank Facility - Redcliff, Alberta

PLATINUM STOCKS TANKS IN ALL SIZES! Phone 403.264.6688 Fax 403.237.8271 Toll Free 1.888.745.4647 www.platinumenergycanada.com

Pipeline News

SECTION C October 2013

Pipeline News is two sections this month. Stayed tuned for Pumps for November's focus.