Pipeline News November 2013

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November 2013

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FREE

Volume 6 Issue 6

3XPS LW XS

Little Pine in Lloydminster

A3

Kerrobert hotel & home development

B1

Brogan Drysdale used to be a dental assistant, but now she works on downhole pumps at Quinn Pumps. See story Page B15. Photo by Brian Zinchuk

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>ŝƩůĞ WŝŶĞ &ŝƌƐƚ EĂƟŽŶ ŚŝĞĨ tĂLJŶĞ ^ĞŵĂŐĂŶŝƐ ǁĂƐ ĂŵŽŶŐ Ă ĂŶĂĚŝĂŶ ĚĞůĞŐĂƟŽŶ ŽĨ ϯϬ &ŝƌƐƚ EĂƟŽŶƐ ĐŚŝĞĨƐ͕ ǀĞƚĞƌĂŶƐ͕ ĞůĚĞƌƐ ĂŶĚ ůĞĂĚĞƌƐ ŝŶǀŝƚĞĚ ƚŽ >ŽŶĚŽŶ͕ ŶŐůĂŶĚ ƚŽ ĐĞůĞďƌĂƚĞ ƚŚĞ ϮϱϬƚŚ ĂŶŶŝǀĞƌƐĂƌLJ ŽĨ ZŽLJĂů WƌŽĐůĂŵĂƟŽŶ ŽĨ ϭϳϲϯ ŽŶ KĐƚ͘ ϳ͘ dŚĞ ĂĐƚ ƌĞĐŽŐŶŝnjĞĚ ďŽƌŝŐŝŶĂů ƉĞŽƉůĞƐ͛ ƟƚůĞ ƚŽ ůĂŶĚƐ ĂŶĚ ƚĞƌƌŝƚŽƌŝĞƐ͘ >ŝƩůĞ WŝŶĞ ŝƐ ŝŶǀĞƐƟŶŐ ŝƚƐ Žŝů ĂŶĚ ŐĂƐ ƌŽLJĂůƟĞƐ ŝŶ ƐĞǀĞƌĂů ůĂŶĚ ĚĞǀĞůŽƉŵĞŶƚƐ ŝŶ >ůŽLJĚŵŝŶƐƚĞƌ͘ dŚĞ ďĂŶĚ ŝƐ ĂƉƉůLJŝŶŐ ƚŽ ƚŚĞ ĨĞĚĞƌĂů ŐŽǀĞƌŶŵĞŶƚ ƚŽ ĚĞƐŝŐŶĂƚĞ ůĂŶĚ ƉƵƌĐŚĂƐĞĚ ĨƌŽŵ ƚŚĞ ĐŝƚLJ ĂƐ ĂŶ ĂĚĚŝƟŽŶ ƚŽ ƌĞƐĞƌǀĞ ůĂŶĚ ;ƵƌďĂŶ ƌĞƐĞƌǀĞͿ͘ dŚĞ ĐŝƚLJ ŚĂƐ ƌĞnjŽŶĞĚ ƚŚĞ ůĂŶĚ ĨŽƌ ƌĞƚĂŝů͕ ĐĂƐŝŶŽ ĂŶĚ ĞŶƚĞƌƚĂŝŶŵĞŶƚ ĐĞŶƚƌĞ ƵƐĞƐ͘ WŚŽƚŽ ƐƵďŵŝƩĞĚ

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Little Pine going big in Lloyd

By Geoff Lee Pipeline News Lloydminster – Little Pine First Nation near Paynton, Sask. is investing a chunk of its oil and gas royalties into Lloydminster projects to become economically self-sufficient.

The band has purchased 18 acres of city land for $4.5 million located at the southeast corner of Highway 16 and 40th Avenue, the band will utilize the property for a retail and commercial development.

The band plans to build a $2 million gas station and a $25 million hotel and conference centre on the site.

Construction is expected to start on the gas station next spring, followed by the hotel complex.

Little Pine also has plans to develop a 160-acre parcel of land it owns behind the corner lot for a future retail and light to heavy industrial subdivision.

The band is currently going through a subdivision process for that section of land.

In addition, the band wants build a 300-unit apartment in the vicinity to house workers in Lloydminster in a bid to become masters of their own destiny.

The vision is what Chief Wayne Semaganis touched on in a Sept. 17 announcement about 70 Little Pine members finding jobs in Lloydminster

in the previous 30 day period.

“As leaders of our communities, we have a responsibility to provide avenues for individuals in our community to become self-sufficient,” said Semaganis.

“We must also look for our own business opportunities to create long-term employment.”

Little Pine’s life skills and job placement department has found jobs for more than 100 band members since the program launch in August 2012.

The program is supported by buses supplied by the band to transport workers to and from the community.

The band raised over $7,000 for steel-toed workboots for the bulk of workers that were hired

by Husky Energy for its 45-day turnaround that has since ended.

Other members have landed jobs with a variety of hotel, retail and agricultural businesses in Lloydminster.

“As leaders, we have eliminated many of the barriers that face our people. We are proud and happy to see so many people make a positive change for themselves and their children,” said Semaganis about the program.

Little Pine is hitching its long-term economic wagon to investing oil and gas royalties from heavy oil produced on reserve lands by companies such as Baytex Energy for its future prosperity.

“The oil royalties run out over time. You’ve got

to use those to generate future wealth,” said Evan Schemenauer, an independent financial consultant working for the band.

He said the band has recently acquired quite a bit of land in the Baldwinton area for heavy oil drilling.

“What we’ve been doing is taking those oil royalties and utilizing them.

“We bought a fair amount of land in Lloydminster. There is going to be a huge development going forward right on Highway 16.”

Under the arm of its Little Pine Business Developments LP entity, Little Pine owns about 178 acres within city limits.

The development company is working with the city to have the 18 acre corner lot designated by the federal government as reserve land for tax advantages and development controls.

The band is also look at acquiring land near an ongoing private development on the southwest corner of Highway16 and 40th Avenue to construct an apartment building.

“With all the businesses going up, we’re creating 300 jobs on our own,” said Schemenauer.

“The apartment units are a business. In Lloydminster you can’t create 300 jobs without having a way to house all those people.

“We need to house the employees we are bringing into the city. They will rent it back to us.”

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A five-well oil drilling program in Pierson, Manitoba targeting the Spearfish formation was completed early in the third quarter on schedule and under budget, Questerre Energy Corporation has reported.

The wells were drilled as short radius horizontals and completed with 16 stage fractures per well.

Over the first three days, the five wells produced at gross rates of more than 1,000 boepd (350 bbl. per day net to Questerre). Production over the first 30 days is expected to be approximately barrels per day (approximately 240 bbl. net to Questerre.) Including these wells, the companyâ&#x20AC;&#x2122;s production is currently in excess of 1,000 boepd.

The drilling program, adjacent to existing production in Antler, Saskatchewan, followed the drilling of two successful wells in the fourth quarter of 2012.

Questerre holds a 35 per cent interest in all the wells. â&#x20AC;&#x153;We are very pleased with the initial performance of these oil wells,â&#x20AC;? Michael Binnion, president and chief executive officer of Questerre, said in a news release. â&#x20AC;&#x153;Our light oil netbacks were in excess of $85 per barrel in July. At current production rates, our operating cash flow before overheads is now over $2 million per month.â&#x20AC;?

Questerre said it is leveraging its expertise gained through early exposure to shale and other non-conventional reservoirs. It has base production and reserves in the tight oil Bakken/Torquay of southeast Saskatchewan and is bringing on production from its lands in the heart of the high-liquids Montney shale fairway.

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

&R RS 5HĂ&#x20AC;QHU\ &RPSOH[ RIĂ&#x20AC;FLDO RSHQLQJ KHOG IRU ELOOLRQ H[SDQVLRQ SURMHFW Regina â&#x20AC;&#x201C; After five years of work, the $2.7 billion expansion of the Co-op Refinery Complex (CRC) is complete. On Oct. 17, the complex, a wholly-owned subsidiary of Federated Cooperatives Limited (FCL) and its retail Co-op owners, held its official opening.

Approval for the project was granted by the FCL board in January 2008. Approximately $50 million of front-end engineering took place prior to the start of construction in the fall of 2008.

The project had two distinct focuses â&#x20AC;&#x201C; revamping or â&#x20AC;&#x153;debottleneckingâ&#x20AC;? eight process units of the existing infrastructure, and adding a fifth phase to the refinery, known as Section V. This greenfield addition, on the eastern end of the complex, added a further 30,000 barrels per day in capacity.

The Section V expansion includes five new state-of-the-art processing units, bringing the total to 33. It also adds 14 more storage tanks and vessels as well as new firewater, flare, plant and instrument systems, cooling tower and electrical substation.

Section V began production on October 17, 2012, and is largely used for gasoline and diesel production.

The expansion brings the capacity of the refinery up to 130,000 barrels of crude oil per day, or as company officials noted, â&#x20AC;&#x153;equivalent to seven billion litres of gasoline and diesel annually.â&#x20AC;?

When the refinery opened in 1935, it processed just 500 barrels per day.

Further debottlenecking could increase the capacity to 145,000 barrels per day with minor modifications across a number of units. It is under consideration for the near, but not the immediate future. Such debottlenecking would require at least five years and a further investment, according to Gil LeDressay, vice-president refinery operations. â&#x20AC;&#x153;Retail Co-ops across Western Canada, 1.5 million individual co-op members and our many other customers are the

beneficiaries today of the co-operative spirit displayed by those who built the foundation of this wonderful facility,â&#x20AC;? said FCL CEO Scott Banda.

Banda added, â&#x20AC;&#x153;We also honour those who stayed true to the foundersâ&#x20AC;&#x2122; beliefs and principles over the decades. Thank you to our individual retail members and all refinery employees for the work you do each day supporting and making the Co-op Refinery Complex a highly successful part of our federation.â&#x20AC;?

FCL president Glen Tully told refinery employees and retail co-op representatives from across Western Canada and other guests that the refinery has a crucial role in the two major mega projects that occur every year in Western Canada: seeding and harvest. â&#x20AC;&#x153;These two projects would not happen without the cooperative retailing system,â&#x20AC;? Tully said. â&#x20AC;&#x153;Without the production capacity of the refinery, without the logistics capacity of the federation and without the support and delivery system of our member retails these two mega projects would be severely hampered.â&#x20AC;?

The expansion project was self-financed by FCL and retail co-ops. It generated approximately $5 billion in economic activity in Saskatchewan. At the peak of construction, almost 5,000 additional people a day were on site helping to complete the project.

Fuel and oil products from CRC are sold to retail Co-ops and are available at approximately 380 gas bars, 315 card lock and 140 bulk fuel locations in communities large and small from Vancouver Island to northwestern Ontario.

The new expansion will run sweet synthetic crude produced in Alberta. To do more sour synthetic, the refinery would need almost another entire section. Depending on what the economics are, the refinery can move between light, heavy, sour or sweet, providing an economic advantage.

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Â&#x201E; By Geoff Lee Edmonton â&#x20AC;&#x201C; Canadian Natural Resources Ltd. is under orders to find the cause of ongoing leaks of bitumen at its Primrose oilsands operations.

The province issued an enforcement order on Oct. 21 for CNRL to test for groundwater contamination and find the root cause of bitumen releases.

CNRL must initiate a winter drilling program as part of its investigation.

The order requires the cleanup, remediation, and reclamation of three ground sites where bitumen is leaking to surface.

CNRL spokesperson Zoe Addington sent an e-mail on Oct. 21 stating CNRL would comply with the latest enforcement order to further the investigation. â&#x20AC;&#x153;Canadian Natural will continue to make available any necessary resources for investigation, clean-up and towards putting safeguards in place to ensure events such as these do not happen again,â&#x20AC;? she said.

An environmental protection order issued on Sept. 24 covers containment, remediation and delineation work at a small lake contaminated by bitumen leakage.

The EPO was issued by Environment and Sustainable Resource Development in Alberta to dewater the lake before it freezes so permanent containment measures can be put in place during the winter.

CNRL began the task of dewatering the lake on Sept. 27

with an aim to isolate and contain the leak.

The EPO follows the initial establishment of temporary containment measures on June 24 when CNRL reported bitumen coming to the surface at the unnamed body of water.

Containment measures have been in place for weeks at three other oilsands sites in the Cold Lake Air Weapons Range where bitumen was initially detected leaking to ground on May 20.

The EPO only applies to the 53-hectare body of water described by CNRL as a shallow slough, about 1.5 metres in depth. â&#x20AC;&#x153;We were considering an EPO for a long time before we sat down with CNRL,â&#x20AC;? said ESRD spokesperson Trevor Gemmell on Sept. 30. â&#x20AC;&#x153;In conversations with CNRL, it was agreed by both parties that an EPO was probably the most appropriate and the most timely way to move forward.â&#x20AC;?

The two-thirds of the water from the lake is being stored in an adjacent water body linked by culverts that will be closed.

Water will also be stored in an existing excavated pit.

The plan called for water to be pumped through a pipe to the storage spots. â&#x20AC;&#x153;We will pump the water over a two week period so we can continuously monitor the water,â&#x20AC;? said Addington said in a Sept.

26 e-mail.

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Maverick Oilfield Services Ltd., a provider of mechanical construction, maintenance and transportation services to the upstream oil and gas industry, says it has entered the southern Alberta and Saskatchewan market through the acquisition of the assets of Toro Projects Inc. Medicine Hat-based Toro, an oil and gas construction company, had 35 employees and complementary heavy construction and pipelining assets and a fleet of light vehicle assets.

In connection with the asset acquisition, all key Toro personnel have joined Maverick. â&#x20AC;&#x153;We are very excited for this expansion opportunity into the southern Alberta and Saskatchewan markets,â&#x20AC;? Chris Challis, Maverickâ&#x20AC;&#x2122;s chief executive officer, said in a news release. â&#x20AC;&#x153;Toro has very talented and highly respected personnel, thus enabling Maverick to better and more fully service its current customer base.

This recent expansion fits with Maverickâ&#x20AC;&#x2122;s aggressive growth strategy to becoming an industry leader.â&#x20AC;?

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

â&#x20AC;˘ EXHAUST â&#x20AC;˘ BRAKES â&#x20AC;˘ SHOCKS â&#x20AC;˘ FRONT END â&#x20AC;˘ WHEEL ALIGNMENT â&#x20AC;˘ SUSPENSIONS â&#x20AC;˘ AB & COMMERCIAL INSPECTIONS

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PIPELINE NEWS Mission Statement:

EDITORIAL

Pipeline Newsâ&#x20AC;&#x2122; mission is to illuminate importance of Saskatchewan oil as an integral part of the provinceâ&#x20AC;&#x2122;s sense of community and to show the general public the strength and character of the industryâ&#x20AC;&#x2122;s people.

Publisher: Brant Kersey - Estevan Ph: 1.306.634.2654 Editorial Contributions: SOUTHEAST Brian Zinchuk - Estevan 1.306.461.5599 SOUTHWEST Swift Current 1.306.461.5599 NORTHWEST Geoff Lee - Lloydminster 1.780.875.5865 Associate Advertising Consultants: SOUTHEAST & NORTHWEST R5 -. 0 (5g8ifl8lij8hlkj Cindy Beaulieu Candace Wheeler Kristen Oâ&#x20AC;&#x2122;Handley Deanna Tarnes Teresa Hrywkiw R5 ,&3& 5g8ifl8jki8hkhk Alison Dunning CENTRAL Al Guthro 1.306.715.5078 al@prairieng.com SOUTHWEST R5 1# .5 /,, (.5g8ifl8mmi8nhlf Stacey Powell MANITOBA R5 #, (575 # (( 5 (-)(5g8hfj8mjn8ioig R5 -. 0 (575 #( 35 /&# /5g8ifl8lij8hlkj CONTRIBUTORS R5 -. 0 (575 #( 5 &-)( R5 -% .))(575 )-"5 " , R5 #, (575 ,& 35 ),'# % 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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Oil transportation is topping the headlines In the past few years, it seems like thereâ&#x20AC;&#x2122;s never a dull moment in the oil transportation business.

In recent weeks, weâ&#x20AC;&#x2122;ve had multiple crude-by-rail derailments on CN rail lines. There was a minor one in North Battleford on Oct. 2, a more substantial one just outside of Landis, and then a major one near Gainford, Alta. on Oct. 19.

So many in such a short period might have a few people rethinking pipelines, especially since pipelines are intrinsically safer than rail cars. Pipelines donâ&#x20AC;&#x2122;t go off the rails, as it were.

One wonders if this realization might have something to do with B.C. Premier Christy Clarkâ&#x20AC;&#x2122;s sudden warming up to the idea of pipelines. All of a sudden she is becoming buddy-buddy with her neighbour to the east, Alberta Premier Allison Redford. Theyâ&#x20AC;&#x2122;re ' .#(!5#(5 ( )/0 ,5)(5 )085k5.)5. &%5 )/.5 (5 energy export plan.

A year ago, it seemed like it would be a cold day in hell before Clark would warm up to oil pipelines.

Now theyâ&#x20AC;&#x2122;re issuing joint statements.

After spending a long time doing their best to foil British Columbiaâ&#x20AC;&#x2122;s natural resource advantages, the Left Coast government seems to have woken up.

In a province as blessed as Lotusland, why should they be in economic doldrums for so long? Why should Saskatchewan have a better unemployment rate?

In the past, B.C. seemed to have a mine for every mountain. But successive governments have done their best to squander that bounty. Letâ&#x20AC;&#x2122;s hope they donâ&#x20AC;&#x2122;t do the same with their own natural gas, or Alberta oil.

In the meantime, the Manitoba government has given a cold shoulder to the idea of shipping crude-byrail to Churchill and then out to sea via Hudson Bay. OmniTrax, owner of the rail line and port, put a test shipment on hold. It had been planned for this fall.

But the more things change, the more they stay the same. Thereâ&#x20AC;&#x2122;s still no resolution to the Keystone XL. With even more discussion periods on the horizon, one wonders how the United States ever accomplished things like putting a man on the moon or building the atomic bomb.

Prime Minister Stephen Harper, on Sept. 26, said â&#x20AC;&#x153;my view is you donâ&#x20AC;&#x2122;t take no for an answer,â&#x20AC;? on Keystone XL, however.

How heâ&#x20AC;&#x2122;s going to back that up, weâ&#x20AC;&#x2122;re not sure. But itâ&#x20AC;&#x2122;s good to see the prime minister has a spine on this.

About this far into a mandate, people start to ask what a prime ministerâ&#x20AC;&#x2122;s legacy might be. He just signed a free trade deal with Europe. If he can get our oil and liquefied natural gas export capability on track, that just might be the legacy weâ&#x20AC;&#x2122;re looking for.

Maybe we could even ship Fort McMurray dilbit to .85 )"(65 15 ,/(-1# %65 ( 5*/.5#.5)(5 5-&)15 ) .5.)5 Germany.

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OPINION

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Keystone XL still mired in red tape

Wouldn’t it be fitting if TransCanada dumped plans to build the Keystone XL pipeline instead of waiting for a Presidential Permit that may never come?

They could even send the Americans the bill, too, for five years of aggravated delays to build the crude oil pipeline from Hardisty, Alberta to Steele City, Nebraska.

Political wrangling has turned a simple energy project into a political one at the expense of the company and producers in both countries who need to get their oil to U.S. Gulf Coast refiners.

The rationale to walk away is TransCanada’s Plan B which is to build the $12 billion Energy East pipeline to ship Alberta and Saskatchewan crude to refineries on our East Coast.

With Energy East, we will secure our own energy security – the very thing the Keystone XL is touted as promising to do for the United States, along with creating jobs and tax revenue.

Obviously, many Americans don’t seem to want their energy security to be provided by the Keystone XL or the project would have approved years ago.

In Canada, the National Energy Board approved the construction of the Keystone XL from Hardisty to Monchy, Saskatchewan in March 2010.

Sept. 19 marked five years since TransCanada

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One Woman’s Perspective on Life, Liberty and the Pursuit of Land Locations

By Nadine Elson I was pumped! It was exciting to be inside Independent Pump Co.’s new building last spring, listening to Jeremy Mack as he toured the members of the Desk and Derrick Club through the large facility that he and his partners had built in 2011.

But it wasn’t the first time I had been there.

Not by a long shot.

I regularly haul out strings of sucker rods on the trailer for various service rig companies and nearly always that includes a down-hole pump.

Most often, it is from Independent Pump Co. or IPC. In fact, when there is not a pump in the order with sucker rods, I call the consultant at the lease.

To my way of thinking, a call to check whether a pump should be included is much better than arriving on lease without it.

Several years ago when the boss was training me, he took me to the small and cramped location that IPC operated out of at that time.

It took special maneuvering to get close enough to the rack without the trailer hanging out onto the

filed its application for Keystone XL to the U.S. government.

In 2008, the Calgary-based company received a Presidential Permit for the original Keystone pipeline in a 21 month regulatory approval process.

The Keystone XL would connect to the Keystone system.

The southern leg of the XL pipeline, called the Gulf Coast pipeline, is expected to be in service this year after construction began in August 2012.

No Presidential Permit was needed to build that section from Cushing, Oklahoma to Nederland, Texas.

Canadian politicians may want to take note and back off challenging the economic benefits that the Energy East pipeline will deliver to the six provinces along the proposed route.

At a time when their economy is weak, it’s hard to believe some American politicians and lobbyists would prefer the Keystone XL to be cancelled for environmental or economic concerns.

In mid-September, the U.S. Federal Reserve said it would maintain the pace of its $85 billion in monthly bond buying stimulus program and await more evidence of solid economic growth.

Had the Keystone XL followed the same regulatory route as the existing Keystone pipeline, approximately more than 9,000 Americans would have been employed during the construction.

Dozens of communities along the route would be reaping millions of dollars in additional tax

revenues.

Up to 830,000 barrels a day of crude oil from Western Canada and the U.S. Bakken states would also be flowing to American refineries along the 1,897 kilometre Keystone XL line.

The promise of the Keystone XL to create jobs and lessen U.S. dependency on foreign oil has gone from a pipe dream to a nasty political debate with endless studies and talking points.

A decision on the Keystone XL is not even likely until sometime in 2014 since the State Department has yet to finalize a 2,000 page environment impact statement.

When it does, there will a 90 day national interest comment period followed by a public comment period on the national interest!

Even more delays are expected since the State Department’s independent inspector general plans to release a report in January on conflict of interest regarding the company that did the environment review.

Give the burden of endless reviews and red tape, TransCanada may do better by rejecting the project itself and focus on plans to deliver oil, jobs and energy security to Canadians with its Energy East pipeline.

It’s not likely that TransCanada will even take this action, but the decision could be made for them without a permit to build the XL. Either Way, having plan B in the bag will help the company and Canada either way.

All pumped up street. There was no room to turn around on the lot, so one was forced to back out onto the street into the traffic. It was a nightmare when IPC had a delivery of parts that were on the lot waiting for the forklift to move, or when a traffic jam occurred when more than one truck and trailer where lined up to get a pump.

It was there at the old IPC building that I had my first lesson on leveraging.

I knew about leveraging financial assets. I had done that for years with various businesses I had operated. But now I desperately needed a lesson on mechanical leveraging. I couldn’t lift the pump! At least, not the whole pump as it weighs around 200 pounds. Reciprocating rod down-hole pumps are long, heavy, but not rigid like pipe, which makes them harder to handle.

The boss showed me how to position the trailer so that I could use the trailer and the rack for leverage to help me load the pump. It was fairly easy with two of us, but I needed to learn how to do it myself.

Even with leveraging, it was always difficult at that old location, especially if there were a lot of pumps on the rack. The same rack was used for returns.

That is how I met Jeremy. He pulled up in his truck outside IPC one weekend as I was struggling to extricate a pump from the rack. I asked him for help, and he willingly assisted. It was only a few minutes of his time, but he saved me lots of my time struggling.

It happened again a few months later. Again

he assisted. By this time, I was fearless. If the rack was crowded, I opened the shop door to get some help from any IPC employee. They used two rolling racks with two men to transport the pumps so my inference was that the pumps were heavy, and I didn’t feel bad for not being able to manhandle them out of the rack.

I reciprocated with doughnuts, and verbal thanks. It was months later before I knew that that the charming and cheerful man, who had helped me initially, was one of the partners of IPC. I can honestly say I was delighted when IPC constructed their new building. I am sure that the partners and employees enjoyed the spacious interior and labour-saving devices that were incorporated into the design. I was most thrilled about the paved loading area, the two loading racks – one for outgoing orders and one for returns – the huge lot on which a trailer could be turned, and the space with which one could line up and wait if it was busy.

Jeremy gave a great tour to the Desk and Derrick Club. We learned about pumps and the assembly and service business that IPC does. We also learned that Jeremy and his partners sold IPC to Weatherford in the spring of 2012. He continues in a managerial role there, still charming and cheerful, and all pumped up to do business in Estevan.

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

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

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Next summer we’ll have our answer I will often start my day looking at Rig Locator’s website, www.riglocator.ca, to see how the industry is doing. The rig count is the leading indicator of the business. More wells means more completions, service rig work and pipelines. More pumpjacks get set, more skid packages are sold, more batteries built, more operators are needed.

This past summer and fall, the rig count has been pretty doggone depressing.

I’m hearing it around Estevan, too. People are asking me when, and if, things are going to pick up on the drilling side. Some people people in the business have told me their drilling related numbers are down by up to 50 per cent.

One woman I spoke to, the wife of a derrickman, asked me, “When did a six-week breakup become six months?”

Good question. And I don’t have an answer for that.

They’ve had a tough go of it, and he’s found work on a service rig in the meantime. She’s picked up work, and the kid’s in daycare.

I suspect this family isn’t the only one that has had to scramble to make a go of it.

As of Oct.22, there are 87 drilling rigs working in Saskatchewan, or 60 per cent of the fleet of 146. That’s up quite a bit, actually, since earlier in the month it was as low as 60 active rigs on Oct. 1.

Over the past several years, there has always been a drop from mid-September to October. This year, that dip was more pronounced than usual.

When I ask industry insiders what the reason

for the lower drilling numbers are, they often tell me it’s wet out there. Really? On that, I call bovine feces.

On Aug. 22, 2011, I was in a helicopter flying over southeast Saskatchewan doing a story on rig mover Fast Trucking. It just so happens on that day Rig Locator reported Saskatchewan hit a one day spike of 122 active drilling rigs, after a summer of 100 to 110 rigs working. Fast moved seven rigs on that day, if I’m not mistaken.

That flight was memorable for a few reasons.

Everywhere to the horizon, fields were filled with water. Road bans were everywhere. Water flowed over grid roads or the roads themselves were cut to allow water to pass. The price of WTI oil that day was also US$84.42.

This past Aug. 22, oil was US$104.93, or $20.51 more per barrel than it was two years ago, yet the rig count on Aug 20, 2013 was just 75, down by roughly one-third of the activity level of the summer of 2011 and 38.6 per cent from the 122 rig peak.

It may be wet out there. Thanksgiving gave us a good soaking. But no one can tell me it is worse than it was in 2011. The WTI price of oil has been floating in the triple digits since July 3. If you, as an oil company, can’t make money at US$100 per barrel, maybe you shouldn’t be in the business.

Most of the small drilling contractors, locally owned, with a handful of rigs, have most or all of their rigs working. Not all, however. A few have been sitting on their hands or only have a small fraction of their fleet working. The bigger contractors seem to have substantial portions of their fleet sitting.

This has me wondering if the bloom has come off the Bakken, so to speak?

In some ways, the “Bakken Boom” has likely been overplayed. Yes, Saskatchewan saw Bakken production rise in a few years from around 700 barrels per day to over 70,000. But since 2009, North Dakota saw its Bakken and Three Forks production (they lump them together) see the state’s daily production go from 90,000 bpd to 875,000 now. On Sept. 30, it was reported the state may see that double to 1.6 million barrels per day by 2017.

Put another way, Cenovus’ Foster Creek oilsands project produces 55,000 barrels per day, almost as much as our entire “Bakken Boom.”

Doesn’t seem that much of a boom any more, does it?

The answer to how things will go in southeast Saskatchewan in the coming years will be answered in large part on Aug. 11, 2014. Land sales are the other leading indicator, and this past year, they have been flat, to put it politely. Remember the enormous billion dollar land sale of 2008? All those leases that weren’t developed expire March 31, 2013. The next date for postings is Apr. 14, 2014, for the Aug. 11 land sale.

If we see a big land sale, things will be looking up. If not, well, I guess we’ll have our answer.

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

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

24 HOUR SERVICE Ken McConnell Owner/Operator 24 HR Dispatch: 780-205-9001 Mike #: 403*11*29001 Fax: 306-397-2697 PIPELINE NEWS INVITES OPPOSING VIEW POINTS. EDITORIALS AND LETTERS TO THE EDITOR ARE WELCOME. Box 238 Edam, SK Email to: brian.zinchuk@sasktel.net rackenent@hotmail.com

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%RRWV DQG EXVHV KHOS /LWWOH 3LQH PHPEHUV W Page A3 Four years ago, when the current chief and council were elected, about 400 of the bandâ&#x20AC;&#x2122;s 1,000 members on and off the reserve were on welfare. â&#x20AC;&#x153;A year ago there were still 200 on welfare. Weâ&#x20AC;&#x2122;re down to about 104 this month,â&#x20AC;? said Schemenauer in late September. â&#x20AC;&#x153;The band kind of took it on its own. They took it on their own to hire a life skills coach. â&#x20AC;&#x153;They took it on themselves to reallocate the training dollars they do get. â&#x20AC;&#x153;They put a little bit into safety tickets to upgrade what employees needed to get the jobs, but the bulk of the money went into the shuttle to get them to work. â&#x20AC;&#x153;When you are looking at a person that is on welfare at $255 a month, they just canâ&#x20AC;&#x2122;t afford transportation.â&#x20AC;?

The band initially purchased vans, then upgraded to buses to meet the demand. â&#x20AC;&#x153;Transportation is one of the biggest struggles that we face as First Nations people,â&#x20AC;? said Little Pine Councillor Serinda Baptiste who runs the job placement program â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s a lot cheaper for our people to go off the reserve and work because they are not paying rent.

The life skills and jobs programs helps band members write resumes and earn safety tickets for oilfield work among other basic training.

The program also acts as a liaison between the business community in Lloydminster and Little Pine members. â&#x20AC;&#x153;The demand in Lloydminster has been phenomenal,â&#x20AC;? added Schemenauer. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s quite the story when that many people all of a sudden get hired.

Thereâ&#x20AC;&#x2122;s still a lot of employers out there who donâ&#x20AC;&#x2122;t know about it. If you get the word out about it, more people start calling. â&#x20AC;&#x153;The way weâ&#x20AC;&#x2122;ve seen it work is once one or two people get established in a certain

´$V OHDGHUV ZH KDYH HOLPLQDWHG PDQ\ RI WKH EDUULHUV WKDW IDFH RXU SHRSOH :H DUH SURXG DQG KDSS\ WR VHH VR PDQ\ SHRSOH PDNH D SRVLWLYH FKDQJH IRU WKHPVHOYHV DQG WKHLU FKLOGUHQ Âľ &KLHI :D\QH 6HPDJDQLV /LWWOH 3LQH )LUVW 1DWLRQ business or a certain industry, more people tend to follow. â&#x20AC;&#x153;The hotel business was actually one of the first that came in. Because a couple of people got hired, more people went that direction.â&#x20AC;?

Baptiste credits the work of lifeskills coach and band member Vince Kukum for making the program a success. â&#x20AC;&#x153;Heâ&#x20AC;&#x2122;s done an awesome job. Heâ&#x20AC;&#x2122;s worked overtime so many hours for us. Heâ&#x20AC;&#x2122;s taken direction and just followed through with everything weâ&#x20AC;&#x2122;ve asked him to do,â&#x20AC;? she said.

The program is funded by the band and the Department of Aboriginal Affairs and Northern Development Canada.

Band elections for chief and council will be held on Nov. 26, but Baptiste is optimistic the next chief and council with continue the program. â&#x20AC;&#x153;Whenever a new council comes in, they support our membership and they help them go to work and succeed,â&#x20AC;? she said. â&#x20AC;&#x153;Ultimately thatâ&#x20AC;&#x2122;s what us councillors are there for is to help our people and our needs and to focus on our treaty rights as leaders.â&#x20AC;?

Semaganis joined a Federation of Saskatchewan Indian Nationsâ&#x20AC;&#x2122; delegation to London, England on Oct. 7 to mark the 250th anniversary of the Royal Proclamation of 1763.

The act set out a legal framework for Aboriginal rights and recognized indigenous peoplesâ&#x20AC;&#x2122; title to lands and territories.

The trips overseas was also an opportunity

to discuss resource sharing and poverty among First Nations people. â&#x20AC;&#x153;When I started there four years ago, the band was in serious financial trouble,â&#x20AC;? said Semaganis, a former CFO of FSIN. â&#x20AC;&#x153;This First Nation has been a pleasure to work with because youâ&#x20AC;&#x2122;ve got a chief and council that can take direction. â&#x20AC;&#x153;They knew that they had to fix their situation. Theyâ&#x20AC;&#x2122;ve knocked a ton of debt off their books. In the past, oil and gas money was just used for fixing roads or building a new recreational centre on the reserve. â&#x20AC;&#x153;It wasnâ&#x20AC;&#x2122;t invested in the future. Thatâ&#x20AC;&#x2122;s where the direction has really changed. Now most of that money is directed toward eco-

nomic development. â&#x20AC;&#x153;As long as the community continues down this path, itâ&#x20AC;&#x2122;s going to be one of the leaders in Saskatchewan.â&#x20AC;?

The life skills and

job placement program has a made a huge impact among Little Pine First nations members who have found work. â&#x20AC;&#x153;I went out to visit one family and the guy said he was happy to

support his own family. He was able to pay his power and his heat,â&#x20AC;? said Baptiste. â&#x20AC;&#x153;He said he didnâ&#x20AC;&#x2122;t want to go back on welfare because he felt that pride in being able to support his family. â&#x20AC;&#x153;I see nothing but success for the program.

Weâ&#x20AC;&#x2122;ve got nothing to lose. All we can keep doing is pushing our workers. â&#x20AC;&#x153;Hopefully, next year we can accommodate a van to North Battleford too.â&#x20AC;?

About 10 to 15 band members are car pooling this fall to courses at Northwest Regional College in North Battleford.

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4400/6600 liter spilt, TC 412 spec, lined. Built June 2010, s/n 3290610, tool boxes, 1â&#x20AC;&#x2122; hose reel, no hose, Shan Electrical Oilfield services monitor, Finch 5332 E level monitor, 30â&#x20AC;? bunk, dual exhaust, Alberta safetied 02/2014. $295,000

2004 PETERBILT 379EXHD Stk #828254 - c/w 2001 Garnder Denver Tee 3x5 triplex pump 10,000 psi s/n 000544Z, 2007 no corode mfg. 11m3 fiberglass tank, split compartment 4400/6600. TC412RP spec, PVIK 10/12, lined s/n 3210107, 4â&#x20AC;? hyd load pump, hoses, line pipe and stands, 1â&#x20AC;? hp rubber hose and hyd reel, misc. tools and fittings. New CVIP on truck. $225,000

2007 KENWORTH T300 Stk #930616 - c/w 2x3 pressure pump, 3â&#x20AC;? transfer pump, advance two compartment, 6m3 406 tank, 2275/4275 plit, VIPK 09/12, s/n 2AESTAB046S000373, tool boxes, ready to work! $199,000

2004 FREIGHTLINER FLC 12064T Stk #M36967 - c/w Gardner Denver Tee 3x5 triplex pump, power volt model DS 7000 generator, alum. Hutchinson 11 m3 tank, Tc 406 code, built June 2009, s/n 09-7873, 1â&#x20AC;? hi pressure hose, 1&1/2â&#x20AC;? hi pressure rubber hose, misc. fittings, hydraulic drive load pump, Red Lion flow monitors, Finch 53332 level monitor, Alberta safetied 4/2014 $275,000

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W Page A4 Two subsequent minor fires The refinery sits adjacent to the occurred in May 2012 and February Enbridge mainline pipeline right-of2013. No one was injured in either way and Regina tank farm. It receives event, and there was little business its feedstock from the Enbridge impact. system and ships its upgraded crude The CRCâ&#x20AC;&#x2122;s permanent workto the east down that same pipeline force has increased by 125 to a total system. All the mainlines in Sasof 880 as a result of the expansion. katchewan run from west to east, one Employee salaries and benefits total of the reasons that oil from southmore than $100 million a year. In east Saskatchewan is not refined at addition, more than 1,500 people Regina. are employed and contracted anIn the past three years there has nually during peak maintenance been a substantial increase in crudeperiods and routine maintenance by-rail transportation, to the point turnarounds. where recently announced projects in More than 150 companies proSaskatchewan, if built, could theovided contracted services throughretically ship all of the provinceâ&#x20AC;&#x2122;s oil out the expansion and associated production by rail instead of pipeline. revamps.

Numerous refineries across the conTim McMillan, minister retinent are also adding crude-by-rail sponsible for Energy and Resourcreceiving capability. Was crude-byes, said, â&#x20AC;&#x153;No new refineries have rail a consideration for the Regina dĹ&#x161;Ĺ?Ć? Ĺ?Ć? Ä&#x201A;Ĺś Ä&#x201A;Ä&#x17E;Ć&#x152;Ĺ?Ä&#x201A;ĹŻ Ć&#x2030;Ĺ?Ä?Ć&#x161;ĆľĆ&#x152;Ä&#x17E; ŽĨ Ć&#x161;Ĺ&#x161;Ä&#x17E; Ä&#x17E;ĹśĆ&#x;Ć&#x152;Ä&#x17E; ŽͲŽĆ&#x2030; ZÄ&#x17E;ÄŽĹśÄ&#x17E;Ć&#x152;Ç&#x2021; ŽžĆ&#x2030;ĹŻÄ&#x17E;Ç&#x2020;Í&#x2DC; dĹ&#x161;Ä&#x17E; ĹśÄ&#x17E;Ç ^Ä&#x17E;Ä?Ć&#x;ŽŜ s Ĺ?Ć? Ĺ?Ĺś Ć&#x161;Ĺ&#x161;Ä&#x17E; Ć&#x161;Ĺ˝Ć&#x2030; Ć&#x152;Ĺ?Ĺ?Ĺ&#x161;Ć&#x161; Ä?Ĺ˝Ć&#x152;ĹśÄ&#x17E;Ć&#x152;Í&#x2DC; WĹ&#x161;Ĺ˝Ć&#x161;Ĺ˝ Ć?ĆľÄ?ĹľĹ?ĆŠÄ&#x17E;Ä&#x161; been built in Canada since 1984, refinery? and in the U.S. since 1976. However, LeDressay told Pipeline News, there have been projects involving â&#x20AC;&#x153;Right now, itâ&#x20AC;&#x2122;s not, but it is a contincapacity expansion, and continued improvements to increase operational efgency.â&#x20AC;? ficiency. Weâ&#x20AC;&#x2122;re very pleased to see that one of these expansions has taken place He noted the cheapest oil for them is by pipeline. Crude-by-rail could be right here in Reginaâ&#x20AC;&#x201D;and it is a major one. an alternative if there was a shortage of crude on the pipeline. However, the â&#x20AC;&#x153;This is a Saskatchewan-built, Saskatchewan-financed facility processing plant was built to add value to sweet synthetic crude, which is already partially primarily Saskatchewan heavy oil. The completion of the new Section V here at upgraded, as opposed to Bakken crude. â&#x20AC;&#x153;Bakken is not as good a fit,â&#x20AC;? he said, adding the refinery does not have the CRC is a significant leap forward for our petroleum sector. We are the number two leading oil producer in Canada, so when you look at this facility, you are ability to receive crude-by-rail at this time. looking at, literally, one of the fuels driving our economic prosperity.

The project was hampered by a serious fire on Oct. 6, 2011, which saw â&#x20AC;&#x153;We continue to encourage people and investors everywhere to â&#x20AC;&#x2DC;think 52 injured in an older part of the refinery that was being revamped. That area Saskatchewanâ&#x20AC;&#x2122;.

The Co-op Refinery Complex is something we can point to as a required extensive rebuilding, and resulted in resulted in an additional $100 prime example of the activity taking place here,â&#x20AC;? McMillan concluded. million impact on the business, with physical damage and loss of production

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0RELOH ODE RQ VLWH IRU WHVWLQJ WUHDWPHQW W Page A5 â&#x20AC;&#x153;We have a mobile lab on site with testing and treatment capabilities.â&#x20AC;?

CNRL is required to submit up to 10 plans in the EPO, including plans for permanent containment at the lake site. â&#x20AC;&#x153;Like the other three sites, the fissure, once exposed, will be contained within a constructed berm,â&#x20AC;? explained Addington. â&#x20AC;&#x153;The fissure will remain isolated behind the berm, and the water will be returned to the remainder of the water body site.â&#x20AC;?

The work will be done in the winter when the ground is frozen to minimize the long-term environmental impact to the lake. â&#x20AC;&#x153;The snowfall this winter and spring runoff will replace water lost to the original site,â&#x20AC;? noted Addington.

CNRL must also prepare plans for monitoring

and prevention of soil erosion at the lake to ESRD officials in the coming weeks.

By Oct. 1, crews had contained and collected more than 10,500 barrels of bitumen emulsion from the sites. The overall seepage had declined to less than 20 barrels a day by that time.

The affected area was also reduced from 13.5 hectares to 7.4 hectares. There are approximately 200 workers at the site.

The preliminary cost of the cleanup is pegged at $40 million.

CNRL has completed aerial and ground surveillance of its entire Primrose oilsands operations, with no further seepage locations identified.

The company continues to work with the Alberta Energy Regulator and ESRD to determine the cause of the four leaks.

CNRL is using high pressure cyclic steam stimulation to produce bitumen at Primrose and believes the cause of the leaks is due to mechanical

failures of wellbores in the affected areas. â&#x20AC;&#x153;We are in the process of identifying and investigating these wellbores,â&#x20AC;? said Addington. â&#x20AC;&#x153;We are drilling hydro-geological and delineation wells adjacent to the affected locations to aid in the investigation.â&#x20AC;?

Meanwhile the Wildlife Rehabilitation Society in Edmonton reports more than three-quarters of all of the animals captured at the spill sites for care and cleaning have been returned to the wild.

CRNL crews conduct sweeps for affected animals and birds 24/7 with remote cameras and sensors installed to detect animal activity.

Crews have installed more than two kilometres of fencing and deterrents such as effigies, air horns and kites in the controlled areas.

Tarps have also been placed over the ground fissures to protect animals. Crews have even built an aluminum scaffold structure over the fissure at the water body.

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Vermilion a hub for Inter Pipeline spread Â&#x201E; By Geoff Lee Vermilion â&#x20AC;&#x201C; Inter Pipeline Ltd. held open houses in Hardisty, Vermilion and Bonnyville in late September to update stakeholders on the construction of the $100 million Cold Lake Mainline South Loop pipeline.

In the Vermilion area, crews are slowing winding down from a summer peak of 1,000 workers, but thereâ&#x20AC;&#x2122;s still a lot of work going on.

Most of the 42-inch diameter pipeline is strung out on the rightof-way along the 240 kilometre route where welding and lowering of pipe taking place. â&#x20AC;&#x153;The line is fully strung,â&#x20AC;? said Michelle Dawson, Inter Pipelineâ&#x20AC;&#x2122;s director of public and regulatory affairs in a phone interview from the School of Hope open house in Vermilion on Ć&#x152;Ä&#x17E;Ç Ć? Ç Ä&#x17E;ĹŻÄ&#x161; Ä&#x201A; Ć&#x;Ä&#x17E;ͲĹ?Ĺś Ć?Ä&#x17E;Ä?Ć&#x;ŽŜ ŽĨ ϰώͲĹ?ĹśÄ?Ĺ&#x161; Ć&#x2030;Ĺ?Ć&#x2030;Ä&#x17E;ĹŻĹ?ĹśÄ&#x17E; Ĺ?Ĺś Ć&#x161;Ĺ&#x161;Ä&#x17E; sÄ&#x17E;Ć&#x152;ĹľĹ?ĹŻĹ?ŽŜ Ä&#x201A;Ć&#x152;Ä&#x17E;Ä&#x201A; Ä&#x201A;ĹśÄ&#x161; Ä&#x201A;ůŽŜĹ? Ć&#x161;Ĺ&#x161;Ä&#x17E; Sept. 25. ĹŻÄ&#x17E;ĹśĹ?Ć&#x161;Ĺ&#x161; ŽĨ Ć&#x161;Ĺ&#x161;Ä&#x17E; ĎŽĎ°ĎŹ ĹŹĹ?ůŽžÄ&#x17E;Ć&#x161;Ć&#x152;Ä&#x17E; Ć&#x2030;Ĺ?Ć&#x2030;Ä&#x17E;ĹŻĹ?ĹśÄ&#x17E;Í&#x2DC; dĹ&#x161;Ä&#x17E; Ć&#x2030;Ĺ?Ć&#x2030;Ä&#x17E;ĹŻĹ?ĹśÄ&#x17E; Ç Ĺ?ĹŻĹŻ Ä?Ä&#x201A;Ć&#x152;Ć&#x152;Ç&#x2021; Ä&#x161;Ĺ?ĹŻĆľĆ&#x161;Ä&#x17E;Ä&#x161; Ä?Ĺ?Ć&#x161;ƾžÄ&#x17E;Ĺś Ć&#x2030;Ć&#x152;Ĺ˝Ä&#x161;ĆľÄ?Ä&#x17E;Ä&#x161; â&#x20AC;&#x153;We had a couple of spreads. Ä?Ç&#x2021; Ä&#x17E;ŜŽÇ&#x20AC;ĆľĆ?Í&#x203A; Ä&#x17E;Ç&#x2020;Ć&#x2030;Ä&#x201A;ĹśÄ&#x161;Ĺ?ĹśĹ? Ĺ˝Ĺ?ĹŻĆ?Ä&#x201A;ĹśÄ&#x161;Ć? ĨÄ&#x201A;Ä?Ĺ?ĹŻĹ?Ć&#x;Ä&#x17E;Ć? Ä&#x201A;Ć&#x161; &Ĺ˝Ć?Ć&#x161;Ä&#x17E;Ć&#x152; Ć&#x152;Ä&#x17E;Ä&#x17E;ĹŹ Ĺ?Ĺś Ć&#x161;Ĺ&#x161;Ä&#x17E; ŽůÄ&#x161; >Ä&#x201A;ĹŹÄ&#x17E; Ĺ?Ć&#x152; tÄ&#x17E;Ä&#x201A;Ć&#x2030;ŽŜĆ?

We started in Hardisty and north of ZÄ&#x201A;ĹśĹ?Ä&#x17E; Ä&#x201A;ĹśÄ&#x161; ŜŽĆ&#x152;Ć&#x161;Ĺ&#x161; ŽĨ Ć&#x161;Ĺ&#x161;Ä&#x17E; Ć&#x152;Ä&#x201A;ĹśĹ?Ä&#x17E; Ä&#x201A;Ć&#x161; Ĺ&#x161;Ć&#x152;Ĺ?Ć?Ć&#x;ĹśÄ&#x201A; >Ä&#x201A;ĹŹÄ&#x17E;Í&#x2DC; Photo courtesy Inter Pipeline Vermilion. We assume that rough cleanup â&#x20AC;&#x201C; the majority of it will be done by this fall. cell: 780-205-1858 â&#x20AC;&#x153;There will be some reclamation and some final grading cleanup that will have to be done next year.â&#x20AC;?

The line is expected to be opcell : 780-871-1276 erational by July 2014. It will have OfďŹ ce: 780-847-4666 an initial capacity of transporting 120,000 barrels per day of diluted Fax: 780-847-4661 bitumen from the La Corey South Welders, Service Crews, Lease Mowing pump station to facilities in Hardisty.

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The volume will step up to 500,000 bpd, and the pipeline has a design capacity of 1.2 million bpd per day that can be achieved with additional pumping stations. â&#x20AC;&#x153;The ultimate capacity on a 42inch line is significant,â&#x20AC;? said Dawson. â&#x20AC;&#x153;Thereâ&#x20AC;&#x2122;s an initial capacity and you can add additional facilities to get a higher capacity.â&#x20AC;?

The cost of the pipeline is underwritten by shipping commitments of bitumen produced by Cenovus Energy at Foster Creek in the Cold Lake Air Weapons Range and north of the range at Christina Lake.

Cenovus is using steam-assisted gravity drainage (SAGD) to produce growing volumes of bitumen from both areas that are in expansion phases.

Work is also underway on a new Cenovus SAGD project at Narrows Lake near Christina Lake.

Dawson explained that the decision to go with a 42-inch pipe is based on what their customers need. â&#x20AC;&#x153;Their ultimate forecast for production â&#x20AC;&#x2DC;is suchâ&#x20AC;&#x2122; and we customize our pipelines to suit their needs,â&#x20AC;? she explained.

Work will begin this winter on the 36-inch, 80-kilometre Foster Creek Mainline Loop that will connect La Corey, north to the Foster Creek Junction.

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Éş Page A12 These pipeline projects are part of Inter Pipelineâ&#x20AC;&#x2122;s ongoing $2.6 billion expansion of its Cold Lake pipeline system. â&#x20AC;&#x153;The overall project is about 65 per cent complete,â&#x20AC;? said Dawson.

The full expansion of the system is expected to be completed in 2017.

Earlier this year, Inter Pipeline completed dual pipeline laterals for the Kirby South station to Winefred Junction and from Winefred south to the Foster Creek Junction.

Construction of the Cold Lake Mainline Loop that weaves around the east side of Vermilion began in June.

A joint venture contract to build the pipeline was awarded

to Aecon and Robert B. Sommerville Co. in 2012.

The contract includes the construction of pumping stations, metering facilities, junction sites and associated pipeline connections at multiple sites.

There are four pipe yards along the route, including one in Vermilion.

Work camps are located at Hardisty and St. Paul, but the project has also generated a lot of economic spinoffs for communities along the route including Vermilion. â&#x20AC;&#x153;I do believe there is a lot more activity in the local stores, in local services and goods being consumed. I think itâ&#x20AC;&#x2122;s a benefit to everybody,â&#x20AC;? said Dawson. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s a benefit during the construction phase, and then itâ&#x20AC;&#x2122;s a long-

questions we can answer. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s strictly an outreach to be able to address questions and to get feedback.â&#x20AC;?

The open house

included maps and information about all stages of planning and construction including river crossings using horizontal directional drilling.

Crews bored under water bodies such as Battler River, Vermilion River and the North Saskatchewan River in the two 120-kilometre spreads.

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Barry Miller, a landman with HMA Land Services Ltd., talks with area farmer Mike Nowosad whose land is intersected by a right-of-way for Inter Pipelineâ&#x20AC;&#x2122;s Cold Lake Mainline South Loop pipeline from La Corey to Hardisty.

WĹ&#x161;Ĺ˝Ć&#x161;Ĺ˝ Ä?Ç&#x2021; 'Ä&#x17E;Žč >Ä&#x17E;Ä&#x17E;

term benefit after the construction phase.â&#x20AC;?

Local campgrounds and motels are full and will stay that way for awhile with the ongoing twinning of Enbridge Incâ&#x20AC;&#x2122;s. Athabasca pipeline about six kilometres west of town.

Dawson said Inter Pipelineâ&#x20AC;&#x2122;s Cold Lake Mainline South pipeline will help to generate long-term tax revenues for the County of Vermilion River and other municipal districts. â&#x20AC;&#x153;We pay property tax, and linear property tax is a good income source to municipal districts,â&#x20AC;? she said.

The open house in Vermilion provided an opportunity for Inter Pipeline staff to speak about the economic benefits of the project and touch base with stakeholders and landowners on the rightsof-way. â&#x20AC;&#x153;One of the things we are committed to at Inter Pipeline is to tell our stakeholders and people impacted by our operations whatâ&#x20AC;&#x2122;s coming up,â&#x20AC;? said Dawson. â&#x20AC;&#x153;We also like to get their feedback during the construction phase.

Basically, this has taken place over a couple of years. â&#x20AC;&#x153;We were out last year to tell them about the project, and weâ&#x20AC;&#x2122;re out this year to see if thereâ&#x20AC;&#x2122;s any feedback from residents or any

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Grit celebrates year in North Battleford Â&#x201E; By Geoff Lee North Battleford â&#x20AC;&#x201C; Speeches, handshakes, hugs and tours, along with a ribbon cutting and a meal combined to make for a memorable grand opening of Grit Industries Inc. manufacturing base in North Battleford.

It was time for a party on Oct. 17, more than a year after the company relocated all of its oil and gas and utilities related manufac/Ć&#x161; Ç Ä&#x201A;Ć? Ć&#x;ĹľÄ&#x17E; Ć&#x161;Ĺ˝ Ć?ĹľĹ?ĹŻÄ&#x17E; Ä&#x201A;Ć? EĹ˝Ć&#x152;Ć&#x161;Ĺ&#x161; Ä&#x201A;ĆŠĹŻÄ&#x17E;ĨŽĆ&#x152;Ä&#x161; DÄ&#x201A;Ç&#x2021;Ĺ˝Ć&#x152; /Ä&#x201A;Ĺś ,Ä&#x201A;ĹľĹ?ĹŻĆ&#x161;ŽŜ Ä?ĆľĆ&#x161; Ć&#x161;Ĺ&#x161;Ä&#x17E; Ć&#x152;Ĺ?Ä?Ä?ŽŜ Ä&#x161;ĆľĆ&#x152;Ĺ?ĹśĹ? 'Ć&#x152;Ĺ?Ć&#x161; turing to the city from /ĹśÄ&#x161;ĆľĆ?Ć&#x161;Ć&#x152;Ĺ?Ä&#x17E;Ć?Í&#x203A; Ĺ?Ć&#x152;Ä&#x201A;ĹśÄ&#x161; Ĺ˝Ć&#x2030;Ä&#x17E;ĹśĹ?ĹśĹ? ŽŜ KÄ?Ć&#x161;Í&#x2DC; Ď­ĎłÍ&#x2DC; ,Ä&#x201A;ĹľĹ?ĹŻĆ&#x161;ŽŜ Ĺ?Ć? Ĺ&#x2021;Ä&#x201A;ŜŏÄ&#x17E;Ä&#x161; ŽŜ Ć&#x161;Ĺ&#x161;Ä&#x17E; ĹŻÄ&#x17E;Ĺ&#x152; ŽĨ Ć&#x161;Ĺ&#x161;Ĺ?Ć? Ć&#x2030;Ĺ&#x161;Ĺ˝Ć&#x161;Ĺ˝ Ä?Ç&#x2021; Lloydminster.

Company president :Ĺ?Ĺľ ^Ć&#x2030;Ä&#x17E;ĹśĆ&#x152;Ä&#x201A;Ć&#x161;Ĺ&#x161;Í&#x2022; Ä?Ĺ&#x161;Ĺ?Ä&#x17E;Ĩ Ĺ˝Ć&#x2030;Ä&#x17E;Ć&#x152;Ä&#x201A;Ć&#x;ŽŜĆ? ŽĸÄ?Ä&#x17E;Ć&#x152;Í&#x2022; Ä&#x201A;ĹśÄ&#x161; tÄ&#x201A;Ç&#x2021;ĹśÄ&#x17E; <Ĺ?ĹśĹ?Í&#x2022; Ć&#x2030;Ć&#x152;Ä&#x17E;Ć?Ĺ?Ä&#x161;Ä&#x17E;ĹśĆ&#x161;Í&#x2022; Ä&#x201A;ĹśÄ&#x161; Ć&#x161;Ĺ&#x161;Ä&#x17E; ŽŜ Ć&#x161;Ĺ&#x161;Ä&#x17E; Ć&#x152;Ĺ?Ĺ?Ĺ&#x161;Ć&#x161; and CEO Wayne King Ä?Ç&#x2021; Ä&#x17E;Ä&#x201A;Ĺś ƾƊÍ&#x2022; Ć&#x2030;ĹŻÄ&#x201A;ĹśĆ&#x161; ĹľÄ&#x201A;ĹśÄ&#x201A;Ĺ?Ä&#x17E;Ć&#x152;Í&#x2DC;

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took the opportunity to thank City officials and supporters for welcoming the business to North Battleford while noting the transfer has exceeded expectations. â&#x20AC;&#x153;As everyone knows in business, there are challenges almost every day, but North Battleford has proven to us that the workforce is strong and that we have the support of the community,â&#x20AC;? said King. â&#x20AC;&#x153;It was a good decision to move to North Battleford.â&#x20AC;?

The companyâ&#x20AC;&#x2122;s head office and an assembly shop are located in Lloydminster.

The main products manufactured in North Battleford are natural gas line heaters and secondary containment systems, along with AFire burner systems and some custom manufacturing.

The North Battleford shop is currently producing about 15 to 20 natural gas heaters a month and has a backlog of orders.

In his formal comments, King noted Grit is coming off its strongest month ever with production volume tripling since manufacturing began in North Battleford.

Grit currently has an order for 60 natural gas line heaters from Albania, which is also a growth market for AFire burners systems for heating heavy oil tanks. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re going to grow the business in the U.K. Weâ&#x20AC;&#x2122;re going

to grow the business in Albania,â&#x20AC;? said King. â&#x20AC;&#x153;The Albanians want us there and I have committed to them now.

Weâ&#x20AC;&#x2122;re going to go there.

Weâ&#x20AC;&#x2122;re going to grow the business in North Dakota â&#x20AC;&#x201C; weâ&#x20AC;&#x2122;re going to grow the business. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s all product development. We donâ&#x20AC;&#x2122;t want to become a Kodak. We are going to continue to product develop and keep ourselves ahead of the industry. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s very important to keep moving forward and to be diverse, so if one segment of the industry slows, we continue to grow. Thatâ&#x20AC;&#x2122;s our strategy.â&#x20AC;?

King told guests that he began Grit in 1984 with a $50,000 forgivable loan from the Alberta government and a ton of ideas.

He said thanks to product research and development, the business has grown and paid nearly $71 million in provincial and municipal taxes over that period. â&#x20AC;&#x153;Grit Industries takes pride in developing new ideas and introducing new technology to the petroleum industry primarily, but also the gas utility distribution side of industry,â&#x20AC;? said King.

Natural gas needs to be pre-heated due to a natural cooling effect when pressure is reduced from transmission pressure to distribution pressure to feed customers. ɸ Page A15

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the City of North Battleford. â&#x20AC;&#x153;We moved here Grit has developed with a great deal of cona European standard, fidence and things are low emissions natural turning out very much gas heater that is being as we expected,â&#x20AC;? said tested in England and Spenrath. there are more new â&#x20AC;&#x153;We were convinced products in the works.

by Mayor Hamilton and â&#x20AC;&#x153;Some of our new his team that this was ideas are in the prototyping stages right now,â&#x20AC;? the place to be, and that the business community said King. was the right place for â&#x20AC;&#x153;Some of our ideas us, as well as a good are proven and we are just waiting for the right place for our people to live. time to introduce them â&#x20AC;&#x153;That has been born into the market.â&#x20AC;? out. Here we are today a Gritâ&#x20AC;&#x2122;s decision to year in, and very satisset up shop in a 91,000 fied with the move.â&#x20AC;? square foot facilHamilton was one ity previously used for of many local politicians recreational vehicle manufacturing in North and business leaders invited to the grand Battleford is proving to be the right one to meet opening and he couldnâ&#x20AC;&#x2122;t resist giving a thumb-up the worldwide demand for Gritâ&#x20AC;&#x2122;s early success for their technology. in the community. â&#x20AC;&#x153;We spent quite a â&#x20AC;&#x153;This is very excitbit of money and effort when we first moved in,â&#x20AC;? ing for the city of North said Jim Spenrath, chief Battleford and the area,â&#x20AC;? he said. operations officer, who â&#x20AC;&#x153;A manufacturled a tour of the plant. ing facility like this has â&#x20AC;&#x153;We put in a comchosen North Battleford plete crane system. We to locate and to relocate added a robotic welder to. We are very exand we upgraded a cited about their success. number of other pieces Their success is our sucof equipment. cess,â&#x20AC;? Hamilton said. â&#x20AC;&#x153;The inside of the Grit originally esbuilding has essentially tablished a small shop in got the flow now that the area in 2007, where we wanted it to have.â&#x20AC;? they manufactured small Spenrath said Grit scale repetitive products considered relocating or components. its manufacturing base The manufacturto several areas of the country before finding a ing base in Parsons Industrial Park employs red carpet rolled out by

approximately 60 people and Hamilton thinks more large employers will follow Gritâ&#x20AC;&#x2122;s example and move to the area. â&#x20AC;&#x153;I think we have demonstrated to the larger employers that the labour market is available here and willing to be here,â&#x20AC;? he said. â&#x20AC;&#x153;Theyâ&#x20AC;&#x2122;ve been very successful at maintaining a very stable workforce. I think thatâ&#x20AC;&#x2122;s a great model to follow.â&#x20AC;?

Hamilton also joined in the applause for a $100,000 donation

by King to representatives of the Battlefords Boys & Girls Club to celebrate the grand opening and Gritâ&#x20AC;&#x2122;s commitment to the community.

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Vermilion boom could go viral Â&#x201E; By Geoff Lee Vermilion â&#x20AC;&#x201C; The town of Vermilion is repackaging itself under a New Ideas for Living brand and marketing plan with banners and signs sporting a new logo.

The strategy is well timed as the town is generating a lot of attention from the ongoing construction of the Cold Lake Mainline South Loop pipeline by Inter Pipeline Ltd. and the twinning of the existing Athabasca sÄ&#x17E;Ć&#x152;ĹľĹ?ĹŻĹ?ŽŜ Ä&#x17E;Ä?ŽŜŽžĹ?Ä? Ä&#x161;Ä&#x17E;Ç&#x20AC;Ä&#x17E;ĹŻĹ˝Ć&#x2030;ĹľÄ&#x17E;ĹśĆ&#x161; Ä?ŽͲŽĆ&#x152;Ä&#x161;Ĺ?ĹśÄ&#x201A;Ć&#x161;Ĺ˝Ć&#x152; DÄ&#x201A;Ć&#x152;Ç&#x2021;Ͳ>Ä&#x17E;Ä&#x17E; WĆ&#x152;Ĺ?Ĺ˝Ć&#x152; Ä&#x201A;ĹśÄ&#x161; DÄ&#x201A;Ç&#x2021;Ĺ˝Ć&#x152; Ć&#x152;ĆľÄ?Ä&#x17E; DÄ&#x201A;Ć&#x152;Ͳ pipeline by Enbridge Inc. â&#x20AC;&#x153;It definitely good for convenience Ć&#x152;Ĺ?ŽƊ Ä&#x201A;Ć&#x152;Ä&#x17E; Ä?Ĺ˝Ć&#x161;Ĺ&#x161; Ć&#x2030;ƾžĆ&#x2030;Ä&#x17E;Ä&#x161; Ä&#x201A;Ä?ŽƾĆ&#x161; ĹśÄ&#x17E;Ç Ĺ&#x161;Ĺ?Ĺ?Ĺ&#x161;Ç Ä&#x201A;Ç&#x2021; Ä?ŽžžÄ&#x17E;Ć&#x152;Ä?Ĺ?Ä&#x201A;ĹŻÍ&#x2022; Ĺ?ĹśÄ&#x161;ĆľĆ?Ć&#x161;Ć&#x152;Ĺ?Ä&#x201A;ĹŻ Ä&#x201A;ĹśÄ&#x161; Ć&#x152;Ä&#x17E;Ć?Ĺ?Ä&#x161;Ä&#x17E;ĹśĆ&#x;Ä&#x201A;ĹŻ Ä&#x161;Ä&#x17E;Ͳ Ç&#x20AC;Ä&#x17E;ĹŻĹ˝Ć&#x2030;ĹľÄ&#x17E;ĹśĆ&#x161;Ć? Ĺ?Ĺś Ć&#x161;Ĺ&#x161;Ä&#x17E; Ć&#x161;Ĺ˝Ç ĹśÍ&#x2DC; KĹś KÄ?Ć&#x161;Í&#x2DC; Ď­ WŽžÄ&#x17E;Ć&#x152;Ĺ˝Ç&#x2021; ,Ĺ˝Ć&#x161;Ä&#x17E;ĹŻĆ? Ä&#x201A;ŜŜŽƾŜÄ?Ä&#x17E;Ä&#x161; Ć&#x2030;ĹŻÄ&#x201A;ĹśĆ? Ć&#x161;Ĺ˝ Ä?ŽŜĆ?Ć&#x161;Ć&#x152;ĆľÄ?Ć&#x161; Ä&#x201A;Ĺś stores, gas stations and lodging and all our retail businesses,â&#x20AC;? said Mayor Bruce ϴϏͲĆ&#x152;ŽŽž Ĺ&#x161;Ĺ˝Ć&#x161;Ä&#x17E;ĹŻ ĨĆ&#x152;ŽŜĆ&#x;ĹśĹ? ,Ĺ?Ĺ?Ĺ&#x161;Ç Ä&#x201A;Ç&#x2021; Ď°Ď­ ĹśÄ&#x17E;Ç&#x2020;Ć&#x161; Ć?Ć&#x2030;Ć&#x152;Ĺ?ĹśĹ? Ä&#x201A;Ć&#x161; Ä&#x201A; Ä?Ĺ˝Ć?Ć&#x161; ŽĨ ĆľĆ&#x2030; Ć&#x161;Ĺ˝ Ψϭώ ĹľĹ?ĹŻĹŻĹ?ŽŜÍ&#x2DC; Marriott on Sept 27 in advance of municipal elections on Oct. 21. +RXUV â&#x20AC;&#x153;A lot of residents and homeowners that have spare bedrooms are renting them out for $1,000 a month.â&#x20AC;?

All of the hotels and motels are full and Midwest Pipeline Inc., working for Enbridge has set up a temporary camp at Lakeland College.

The big task of welding and lowering pipeline into the ground will be \HDUV completed this year on both pipelines, but cleanup and reclamation crews will be back in the area next fall. â&#x20AC;&#x153;Everybody needs product, but itâ&#x20AC;&#x2122;s a one-and-a-half to three year thing.

Itâ&#x20AC;&#x2122;s definitely transient, so I donâ&#x20AC;&#x2122;t believe there will be longevity on that type of activity,â&#x20AC;? said Marriott.

The town has launched a social media marketing campaign on YouTube, Facebook and Twitter to draw attention to the townâ&#x20AC;&#x2122;s assets including three new business parks and residential areas. â&#x20AC;&#x153;I think our council is very forward thinking and I think we are ready for business,â&#x20AC;? said economic development coordinator Mary-Lee Prior who spearheads the unrolling of the new marketing plan. â&#x20AC;&#x153;We now have more developments available than weâ&#x20AC;&#x2122;ve ever had.â&#x20AC;?

The town is pre-selling lots in a new 35-acre highway commercial property that they recently purchased for approximately $30,000 an acre.

NOW The development is branded as HIRING Junction Sixteen 41 for its prime location fronting the oilfield corridor of Highway 41 near Yellowhead Highway 16.

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they presented plans to build an 80 room hotel on the site to town Council on Oct. 1.

Construction of the project that will cost up to $12 million will commerce next March after the town does some initial grading.

The town plans to develop and service Junction Sixteen 41 in two phases based on demand.

The land was expropriated to meet a growing demand in the past few years for new highway commercial land. â&#x20AC;&#x153;We tried to negotiate for six years and we were unsuccessful. We decided this is the route we need to go,â&#x20AC;? explained Marriott.

Marriott expects lots at Junction Sixteen 41 will accommodate commercial growth for at least the next five to 10 years. â&#x20AC;&#x153;With our industrial, we know we are okay with that also,â&#x20AC;? he said.

Signs with the townâ&#x20AC;&#x2122;s new logo will be erected at the sight of a Yellowhead Business Park at the south east part of town where 21 lots are available for medium to heavy industrial use.

The town is selling 16 fully serviced lots in Phase 1 for $170,000 an acre, with most of the lots visible from Hwy. 16.

New signs will also help the town to market eight new light commercial lots that are for sale in the East Point Business Park adjacent to the municipal airport.

These lots are selling for $150,000 an acre, with the services installed by the town.

Marriott says Vermilion has come a long way in the last few years with the availability of new land to grow. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;ve invested hugely and smartly as far as Iâ&#x20AC;&#x2122;m concerned,â&#x20AC;? he said. â&#x20AC;&#x153;The majority of residents are defi-

nitely in favour of what we are doing here. They realize you canâ&#x20AC;&#x2122;t sell land if you donâ&#x20AC;&#x2122;t have it ready. â&#x20AC;&#x153;We addressed that four years ago and weâ&#x20AC;&#x2122;ve made it available now. â&#x20AC;&#x153;Thereâ&#x20AC;&#x2122;s just going be a lot of things will come out here in the next six months â&#x20AC;&#x201C; big companies that know that weâ&#x20AC;&#x2122;ve completed things. â&#x20AC;&#x153;Ultimately Vermilion doesnâ&#x20AC;&#x2122;t want to be the developer. I think we are in the position now that we will attract a developer to take on maybe the 15 or the 20 acres.â&#x20AC;?

Marriott also said all the planning and the groundwork that has been done will make it easier for the incoming council to continue to move forward.

Leading Manufacturing Group, a company that manufactures oilfield tanks and vessels, is expanding its storage capacity with the recent purchase of 12 acres of land on the east side of its plant.

Business is booming as oilfield traffic picks up along Hwy. 41 that is part of the Eastern Alberta Trade Corridor plan to better connect communities such as Vermilion to the United States. â&#x20AC;&#x153;We are looking at moving some of the high load traffic off Highway 2 over to 41 and possibly 36,â&#x20AC;? said Prior in reference future plans for the trade corridor. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re hoping more of it goes through 41 because we are right on 41.

That would be a great benefit to us.â&#x20AC;?

Traffic counts have picked up noticeably through town in recent months in pace with pipeline construction by Inter Pipeline and Enbridge. â&#x20AC;&#x153;I cross the Enbridge pipeline three times on the way home,â&#x20AC;? said Prior, who lives in the country.

â&#x20AC;&#x153;Thereâ&#x20AC;&#x2122;s a lot of truck traffic. Itâ&#x20AC;&#x2122;s hard on the rural roads.â&#x20AC;?

Vermilionâ&#x20AC;&#x2122;s transportation advantage, that includes the CN secondary main line connecting to Edmonton, is highlighted in the new marketing blitz.

Seekers Media in Edmonton is producing eight YouTube videos to showcase the perks of living, working and visiting Vermilion with the New Ideas for Living tag line.

Vermilion is positioned as a great place to live with new housing lots available in the 33-lot Brennan subdivision adjacent to Vermilion Provincial Park. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;ve sold over 10 â&#x20AC;&#x201C; theyâ&#x20AC;&#x2122;ve only been for sale for just over a year. We have interest from people to buy more,â&#x20AC;? said Prior.

The town has also just completed the preliminary work for the development of North Brennan with the acquisition of a 67 acre parcel of land for 20 year mixed growth.

The planning signals the go-ahead on a $5 million upgrade of the sewer lines. â&#x20AC;&#x153;We were at capacity about four years ago on our sewer lines,â&#x20AC;? said Marriott. â&#x20AC;&#x153;Thatâ&#x20AC;&#x2122;s underway. Itâ&#x20AC;&#x2122;s been approved and itâ&#x20AC;&#x2122;s starting. Basically, it will be on our north boundary going up to the Brennan area.â&#x20AC;?

Vermilion has also partnered with Jandel Homes in Edmonton on a modular home subdivision on 14 serviced lots and there was just one lot left to be sold as of Oct. 1 The town is on pace to equal or surpass the $10 million of building permits issued in 2012 as development including new retail projects steps up.

Eastalta Co-op plans to construct a 32,000 sq. ft. food store in the downtown core to replace its existing outlet that will be torn down and turned into a parking lot.

Construction is also continuing on a new commercial building next to the town office and a new hardware store called Mainstreet Hardware is set to open in November in Lakeland Mall.

The town has replaced all of its banners on Hwy. 41 and on Railway Avenue and will erect an additional 32 directional signs bearing the new look logo this fall. â&#x20AC;&#x153;We just redid our website as part >D'Í&#x2022; Ä&#x201A;Ĺś Ĺ˝Ĺ?ĹŻÄŽÄ&#x17E;ĹŻÄ&#x161; Ć&#x161;Ä&#x201A;Ŝŏ Ä&#x201A;ĹśÄ&#x161; Ç&#x20AC;Ä&#x17E;Ć?Ć?Ä&#x17E;ĹŻ ĹľÄ&#x201A;ŜƾĨÄ&#x201A;Ä?Ć&#x161;ĆľĆ&#x152;Ä&#x17E;Ć&#x152; Ĺ?Ĺś sÄ&#x17E;Ć&#x152;ĹľĹ?ĹŻĹ?ŽŜÍ&#x2022; Ĺ&#x161;Ä&#x201A;Ć? Ä&#x201A;Ä&#x161;Ä&#x161;Ä&#x17E;Ä&#x161; Ä&#x201A;ŜŽĆ&#x161;Ĺ&#x161;Ä&#x17E;Ć&#x152; Ď­ĎŽ Ä&#x201A;Ä?Ć&#x152;Ä&#x17E;Ć? ŽĨ of our branding,â&#x20AC;? added Prior. Ć&#x161;Ä&#x201A;Ŝŏ Ć?Ć&#x161;Ĺ˝Ć&#x152;Ä&#x201A;Ĺ?Ä&#x17E; Ć&#x161;Ĺ˝ Ĺ?Ć&#x161;Ć? Ć&#x2030;ĹŻÄ&#x201A;ĹśĆ&#x161; ĨŽŽĆ&#x161;Ć&#x2030;Ć&#x152;Ĺ?ĹśĆ&#x161; Ä&#x201A;Ć? Ä?ĆľĆ?Ĺ?ĹśÄ&#x17E;Ć?Ć? Ä?ŽŽžĆ?Í&#x2DC;

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Lakeland to start 2014 with new leader Â&#x201E; By Geoff Lee Vermilion â&#x20AC;&#x201C; There will a passing of the torch for the leadership of Lakeland College on Jan. 6 when Tracy Edwards officially takes over as the new president.

Edwards, who has a doctorate in education, comes into the job as a former president and chief executive officer at Lethbridge College from 2005 to 2012.

She will take over the final twoand-a-half year contract of current president Glenn Charlesworth who is taking early retirement after seven

years as Lakelandâ&#x20AC;&#x2122;s top executive based at the Vermilion campus. â&#x20AC;&#x153;I believe that 2014 is the right time to retire,â&#x20AC;? said Charlesworth, who has spent more than 30 years working at Lakeland. â&#x20AC;&#x153;I wanted to be here for the start of construction of the Petroleum Centre and that began this summer.â&#x20AC;?

The 56-year-old also chose to remain at the college until the conclusion of centennial celebrations on Nov 17.

Edwards was appointed by the Lakeland College board of governors

to the top post on Sept. 11, a month after Charlesworth announced his plan to retire by Jan. 3. â&#x20AC;&#x153;Dr. Edwards is a very astute leader with extensive experience working in post-secondary education in Canada and the United States,â&#x20AC;? board chair Milt Wakefield said in a statement. â&#x20AC;&#x153;She will finish Glennâ&#x20AC;&#x2122;s term and at some point during her tenure, weâ&#x20AC;&#x2122;ll assess the work sheâ&#x20AC;&#x2122;s doing and see if both parties want to sign a new contract. â&#x20AC;&#x153;If not, weâ&#x20AC;&#x2122;ll launch an extensive search for a new president.â&#x20AC;?

The board of governors decided not to initiate a national search due of the length of time and cost of the process. â&#x20AC;&#x153;Our boardâ&#x20AC;&#x2122;s search team approached Dr. Edwards to see if she was interested in this position,â&#x20AC;? said Wakefield. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re thrilled that she was, and

after completing an extensive interview with her, weâ&#x20AC;&#x2122;re confident that she will do a great job ensuring success continues at Lakeland College.â&#x20AC;?

Edwardsâ&#x20AC;&#x2122; career in post-secondary education has spanned more than 25 years. She has worked at colleges in Alberta, Nova Scotia, Florida and Michigan. ɸ Page A19

Lakeland College board of governors approved the appointment of Tracy Edwards as the collegeâ&#x20AC;&#x2122;s next Ć&#x2030;Ć&#x152;Ä&#x17E;Ć?Ĺ?Ä&#x161;Ä&#x17E;ĹśĆ&#x161; Ä&#x17E;ÄŤÄ&#x17E;Ä?Ć&#x;Ç&#x20AC;Ä&#x17E; :Ä&#x201A;ĹśÍ&#x2DC; ϲÍ&#x2022; ĎŽĎŹĎ­Ď°Í&#x2DC; ^Ĺ&#x161;Ä&#x17E; Ç Ĺ?ĹŻĹŻ Ć?ĆľÄ?Ä?Ä&#x17E;Ä&#x17E;Ä&#x161; Glenn Charlesworth who Ĺ?Ć? Ć&#x152;Ä&#x17E;Ć&#x;Ć&#x152;Ĺ?ĹśĹ? ŽŜ :Ä&#x201A;ĹśÍ&#x2DC; ĎŻ Ä&#x201A;Ĺ&#x152;Ä&#x17E;Ć&#x152; seven years as Lakelandâ&#x20AC;&#x2122;s Ć&#x161;Ĺ˝Ć&#x2030; Ä&#x17E;Ç&#x2020;Ä&#x17E;Ä?ĆľĆ&#x;Ç&#x20AC;Ä&#x17E;Í&#x2DC; WĹ&#x161;Ĺ˝Ć&#x161;Ĺ˝ Ć?ĆľÄ?ĹľĹ?ĆŠÄ&#x17E;Ä&#x161;

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W Page A18 While serving as president of Lethbridge College, Edwards changed the institutional governance structure to be more collaborative and inclusive.

She also increased institutional reserves for ongoing sustainability and completed a comprehensive strategic planning process with a new mission, vision, mandate, values and goals.

Charlesworthâ&#x20AC;&#x2122;s term as president will be remembered for his role overseeing the completion of a number of capital projects including the recent construction start of the Petroleum Centre at the Lloydminster campus.

He was also president during the construction of the Bill Kondro wing in Lloydminster, upgrades to the Applied Engineering building in Vermilion, and other improvements and land acquisitions at that campus. â&#x20AC;&#x153;Glenn is an outstanding leader who

'ĹŻÄ&#x17E;ŜŜ Ĺ&#x161;Ä&#x201A;Ć&#x152;ĹŻÄ&#x17E;Ć?Ç Ĺ˝Ć&#x152;Ć&#x161;Ĺ&#x161; Ć&#x161;ŽŽŏ Ć&#x2030;Ä&#x201A;Ć&#x152;Ć&#x161; Ĺ?Ĺś Ä&#x201A; ĹŻĹ˝Ć&#x161; ŽĨ Ć&#x2030;Ĺ&#x161;Ĺ˝Ć&#x161;Ĺ˝ Ĺ˝Ć&#x2030;Ć? Ä&#x161;ĆľĆ&#x152;Ͳ Ĺ?ĹśĹ? Ĺ&#x161;Ĺ?Ć? Ć?Ä&#x17E;Ç&#x20AC;Ä&#x17E;Ĺś Ç&#x2021;Ä&#x17E;Ä&#x201A;Ć&#x152; Ć&#x161;Ä&#x17E;ŜƾĆ&#x152;Ä&#x17E; Ä&#x201A;Ć? Ć&#x2030;Ć&#x152;Ä&#x17E;Ć?Ĺ?Ä&#x161;Ä&#x17E;ĹśĆ&#x161; Ä&#x201A;ĹśÄ&#x161; K ŽĨ >Ä&#x201A;ĹŹÄ&#x17E;Ͳ ĹŻÄ&#x201A;ĹśÄ&#x161; ŽůůÄ&#x17E;Ĺ?Ä&#x17E;Í&#x2DC; Ĺ&#x161;Ä&#x201A;Ć&#x152;ĹŻÄ&#x17E;Ć?Ç Ĺ˝Ć&#x152;Ć&#x161;Ĺ&#x161; Ć&#x152;Ä&#x17E;Ć&#x;Ć&#x152;Ä&#x17E;Ć? ŽŜ :Ä&#x201A;ĹśÍ&#x2DC; ĎŻÍ&#x2022; ĎŽĎŹĎ­Ď°Í&#x2DC; /Ĺś Ć&#x161;Ĺ&#x161;Ĺ?Ć?

DÄ&#x201A;Ć&#x152;Ä?Ĺ&#x161; Ć&#x2030;Ĺ&#x161;Ĺ˝Ć&#x161;Ĺ˝Í&#x2022; Ĺ&#x161;Ä&#x201A;Ć&#x152;ĹŻÄ&#x17E;Ć?Ç Ĺ˝Ć&#x152;Ć&#x161;Ĺ&#x161; Ä&#x201A;Ć&#x2030;Ć&#x2030;ĹŻÄ&#x201A;ĆľÄ&#x161;Ä&#x17E;Ä&#x161; Ä&#x201A;Ĺś Ä&#x201A;ŜŜŽƾŜÄ?Ä&#x17E;Ͳ ĹľÄ&#x17E;ĹśĆ&#x161; ŽĨ Ä&#x201A; ΨϾϰϴÍ&#x2022;ϰϹϏ Ĺ?ĹśÇ&#x20AC;Ä&#x17E;Ć?Ć&#x161;ĹľÄ&#x17E;ĹśĆ&#x161; ĨĆ&#x152;Žž tÄ&#x17E;Ć?Ć&#x161;Ä&#x17E;Ć&#x152;Ĺś Ä?ŽŜŽžĹ?Ä? Ĺ?Ç&#x20AC;Ä&#x17E;Ć&#x152;Ć?Ĺ?ÄŽÄ?Ä&#x201A;Ć&#x;ŽŜ Ä&#x201A;ĹśÄ&#x201A;Ä&#x161;Ä&#x201A; ĨŽĆ&#x152; Ć&#x161;Ĺ&#x161;Ä&#x17E; Ć&#x2030;ĆľĆ&#x152;Ä?Ĺ&#x161;Ä&#x201A;Ć?Ä&#x17E; ŽĨ Ĺ&#x161;Ä&#x17E;Ä&#x201A;Ç&#x20AC;Ç&#x2021; Ĺ˝Ĺ?ĹŻ Ć?Ĺ?žͲ ƾůÄ&#x201A;Ć&#x;ŽŜ Ä&#x17E;Ć&#x2039;ĆľĹ?Ć&#x2030;ĹľÄ&#x17E;ĹśĆ&#x161; ĨŽĆ&#x152; >Ä&#x201A;ĹŹÄ&#x17E;ĹŻÄ&#x201A;ĹśÄ&#x161;Í&#x203A;Ć? WÄ&#x17E;Ć&#x161;Ć&#x152;ŽůÄ&#x17E;ƾž Ä&#x17E;ĹśĆ&#x161;Ć&#x152;Ä&#x17E; Ć&#x161;Ĺ&#x161;Ä&#x201A;Ć&#x161; Ĺ?Ć? ƾŜÄ&#x161;Ä&#x17E;Ć&#x152; Ä?ŽŜĆ?Ć&#x161;Ć&#x152;ĆľÄ?Ć&#x;ŽŜÍ&#x2DC; dĹ˝ Ĺ&#x161;Ä&#x201A;Ć&#x152;ĹŻÄ&#x17E;Ć?Ç Ĺ˝Ć&#x152;Ć&#x161;Ĺ&#x161;Í&#x203A;Ć? Ć&#x152;Ĺ?Ĺ?Ĺ&#x161;Ć&#x161; Ĺ?Ć? DĹ?ĹśĹ?Ć?Ć&#x161;Ä&#x17E;Ć&#x152; ŽĨ ^Ć&#x161;Ä&#x201A;Ć&#x161;Ä&#x17E; ĨŽĆ&#x152; tÄ&#x17E;Ć?Ć&#x161;Ä&#x17E;Ć&#x152;Ĺś Ä?ŽŜŽžĹ?Ä? Ĺ?Ç&#x20AC;Ä&#x17E;Ć&#x152;Ć?Ĺ?ÄŽÄ?Ä&#x201A;Ć&#x;ŽŜ Ä&#x201A;ĹśÄ&#x201A;Ä&#x161;Ä&#x201A; >Ç&#x2021;ŜŜÄ&#x17E; zÄ&#x17E;ĹŻĹ?Ä?Ĺ&#x161;Í&#x2013; Ä&#x161;Ĺ?Ć&#x152;Ä&#x17E;Ä?Ć&#x161;Ĺ˝Ć&#x152; ŽĨ Ä&#x17E;ĹśÄ&#x17E;Ć&#x152;Ĺ?Ç&#x2021;Í&#x2022; Ä&#x17E;ĹśĆ&#x161;Ć&#x152;Ä&#x17E;Ć&#x2030;Ć&#x152;Ä&#x17E;ĹśÄ&#x17E;ĆľĆ&#x152;Ć?Ĺ&#x161;Ĺ?Ć&#x2030; Ä&#x201A;ĹśÄ&#x161; ^Ä&#x201A;Ć?ĹŹÄ&#x201A;Ć&#x161;Ä?Ĺ&#x161;Ä&#x17E;Ç Ä&#x201A;Ĺś Ć&#x2030;Ć&#x152;Ĺ˝Ĺ?Ć&#x152;Ä&#x201A;žžĹ?ĹśĹ? <Ä&#x201A;Ć&#x152;Ä&#x201A; :Ĺ˝Ĺ&#x161;ĹśĆ?Ć&#x161;ŽŜÍ&#x2013; Ä&#x201A;ĹśÄ&#x161; DĹ?ĹŻĆ&#x161; tÄ&#x201A;ĹŹÄ&#x17E;ÄŽÄ&#x17E;ĹŻÄ&#x161;Í&#x2022; Ä?Ĺ&#x161;Ä&#x201A;Ĺ?Ć&#x152; ŽĨ Ć&#x161;Ĺ&#x161;Ä&#x17E; Ä?Ĺ˝Ä&#x201A;Ć&#x152;Ä&#x161; ŽĨ Ĺ?Ĺ˝Ç&#x20AC;Ä&#x17E;Ć&#x152;ŜŽĆ&#x152;Ć?Í&#x2DC; &Ĺ?ĹŻÄ&#x17E; Ć&#x2030;Ĺ&#x161;Ĺ˝Ć&#x161;Ĺ˝

always puts the best interests of the college first. Thereâ&#x20AC;&#x2122;s no question that during his years as president, Lakeland College has thrived,â&#x20AC;? said Wakefield. Under Charlesworthâ&#x20AC;&#x2122;s leadership, full time enrolment equivalents increased from 1,778 in 2006 to 2,235 during the 2012-13 academic year.

Charlesworth also exercised fiscal management that enabled the college to focus funds in high priority areas.

He started his career at Lakeland College in 1982 as a business

instructor. He became vice-president of finance and operations in 2003 and president and CEO on July 1, 2006. â&#x20AC;&#x153;Lakeland College is a remarkable college.

Iâ&#x20AC;&#x2122;m proud of the people who work here and all that weâ&#x20AC;&#x2122;ve accomplished together to help our students and our region succeed,â&#x20AC;? said Charlesworth. â&#x20AC;&#x153;Now is the time to let someone with new ideas come in and lead Lakeland College into its second century. Iâ&#x20AC;&#x2122;m confident the college will continue to prosper in the years ahead.â&#x20AC;?

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October land sale a turkey Regina â&#x20AC;&#x201C; The Oct. 7 sale of petroleum and natural gas rights in Saskatchewan proved to be a bit a turkey in advance of the mid-October Thanksgiving weekend.

There was little cause to beat a drumstick, with just $9.1 million of revenue generated from the sale that saw an average price paid of $524 per hectare.

Party hats were worn after last yearâ&#x20AC;&#x2122;s October sale that generated more than $15 million in revenue.

Energy and Resources Minster Tim McMillan managed to pour a little gravy on the latest results by noting that oil production is currently three per cent higher than last year, which was a record year. â&#x20AC;&#x153;This confirms that industry continues to invest with confidence in Saskatchewan,â&#x20AC;? said McMillan.

Increased oil production is more telling than the fact revenue from the five land sales held to date in 2013 totals $53.5 million. The final sale will be held on Dec. 2. â&#x20AC;&#x153;There has been a shift in focus by industry from purchasing dispositions to drilling those purchases in order to bring them into production,â&#x20AC;? said McMillan. â&#x20AC;&#x153;However, land sales have remained stable, averaging $11 million per sale over the past year, with both Alberta and British Columbia experiencing similar trends in land sale activity.â&#x20AC;?

The Weyburn-Estevan area received the most bids with sales of $5 million, followed by the Lloydminster area at $2 million.

The Swift Current area placed third at $1.1 million and the Kindersley-Kerrobert area trailed the pack at $1 million.

The highest price paid for a single

parcel was $618,000, which was paid by Villanova 4 Oil Corp. for a 194-hectare lease southeast of Weyburn.

The highest price on a per-hectare basis was $12,504. Ranger Land Services Ltd. bid $202,436 for a 16-hectare lease east of Lloydminster.

Weyburn-Estevan Area (numbers rounded up) The top purchaser of acreage in this area was Prairie Land & Investment Services Ltd., who spent $1.07 million to acquire 10 lease parcels.

The top price for a single lease was $618,000 by Villanova 4 Oil Corp., which was paid for a 194.25 hectare parcel situated within the Viewfield Bakken Sand Oil Pool, 22 kilometres southeast of Weyburn.

The top price for a single licence in this area was $107,599, paid by Badger Pass Minerals Inc. for a 1,036 hectare block situated three kilometres north of the Viewfield Bakken Sand Pool, five kilometres northeast of Fillmore.

The highest dollar per hectare in this area was received from Scott Land & Lease Ltd., who paid $3,188 per hectare for each of two 64.75 hectare parcels located adjacent to the Alameda West Midale Beds Pool, 14 kilometres east of Steelman.

Lloydminster Area The top purchaser of acreage in this area was Twin Butte Energy Ltd., who spent $774,578 to acquire lease parcels.

The top price paid for a single lease in this area was $212,672 by Stomp Energy Ltd. for a 242.81 hectare parcel situated adjacent to the Lashburn South Mannville Sands Oil Pool, 37 kilometres southeast of Lloydminster.

The highest dollar per hectare in

this area was received from Ranger Land Services Ltd., who paid $12,504 per hectare for a 16.19 hectare parcel located within the Big Gully North McLaren Sand Oil Pool, 22 kilometres east of Lloydminster.

Kindersley-Kerrobert Area The top purchaser of acreage in this area was Plunkett Resources Ltd., who spent $447,534 to acquire one exploration licence.

Top price for a single lease in this area was $131,378, paid by Rockwell Resources Inc. for each of two 259 hectare parcels situated two kilometers south of the Elrose Viking Sand Oil Pool, 10 kilometres south of the town of Elrose.

The top price paid for a single licence was $447,534, paid by Plunkett Resources Ltd. for a 1,554 hectare block located seven kilometres south of the Mantario East Basal Mannville Sand Oil Pool, 16 kilometres west of

Eatonia.

The highest dollar per hectare in this area was received from Maverick Land Consultants 2012 Ltd., who paid $702 per hectare for a 64.75 hectare parcel located 19 kilometres south of the Verendrye Viking Sand Oil Pool, 6 kilometres southeast of Eatonia Swift Current Area The top purchaser of acreage in this area was Jarrod Oils Ltd., who spent $515,000 to acquire 7 lease parcels.

The top price for a single lease in this area was $315,586, which was paid by Windfall Resources Ltd. for a 259 hectare parcel situated two kilometres east of the Illerbrun Upper Shaunavon Oil Pool, 24 kilometres southeast of the town of Gull Lake.

This is the highest dollar per hectare in this area at $1,218 per hectare.

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707,305, 5,>: 5V]LTILY Kuduâ&#x20AC;&#x2122;s HSU (hydraulic stroking unit) is an above ground hydraulic cylinder with a stoke length of up to 336 inches. The cylinder is a soĹŻĆľĆ&#x;ŽŜĆ?ͲÄ?Ä&#x201A;Ć?Ä&#x17E;Ä&#x161; Ä&#x201A;ĹŻĆ&#x161;Ä&#x17E;Ć&#x152;ĹśÄ&#x201A;Ć&#x;Ç&#x20AC;Ä&#x17E; Ć&#x161;Ĺ˝ Ä&#x201A; pumpjack and is designed to be leak-proof. Photo supplied

Hydraulic stroking unit turns heads Lloydminster â&#x20AC;&#x201C; Different strokes for different folks.

That could be a catch line for Kuduâ&#x20AC;&#x2122;s next generation of long stroke sucker rod pumping technology that is proving to offer multiple solution alternatives to a pumpjack.

Kuduâ&#x20AC;&#x2122;s hydraulic stroking unit, or HSU for short, has a stroke length of up to 336 inches and 50,000 pounds of rod lift.

That makes it a pumping unit of choice for heavy and light oil producers who aim to reduce rod and tubing wear, minimize the impact of rod stretch, and increase gas compression ratios. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s a better way to run a rod pump,â&#x20AC;? said Mark Fraess, HSU product manager who is based in Macklin. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s an industry accepted fact that a longer

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stroke is a better method of producing.â&#x20AC;?

Some of the main selling points of the HSU are its small footprint and ease of setup to reduce field costs.

Its long stroke capability enables producers to reduce rod/tubing wear and reduce wasted stroke inches due to rod stretch, while its increased gas compression boosts production efficiency. â&#x20AC;&#x153;We feel the market potential is huge. We feel our product is the premier product thatâ&#x20AC;&#x2122;s offered for all stroking units,â&#x20AC;? said Fraess.

Kudu has sold 15 of their branded units in Canada since the domestic product launch in 2012.

There are hundreds of units currently operating in the United States.

Kudu expects more installs to come in Western Canada as word spreads about their ability to optimize production and perform without any leaks. â&#x20AC;&#x153;The biggest hurdle weâ&#x20AC;&#x2122;ve had is trying to differentiate ourselves from some of the stroking units in the past because they were not environmentally sound,â&#x20AC;? said Fraess. â&#x20AC;&#x153;These HSU units are as leak-proof as anything can be.â&#x20AC;?

The Kudu HSU is a fully enclosed hydraulically powered rod reciprocating cylinder with a leak-proof design paired with a fully contained Kudu power unit to prevent fluid spillage.

The cylinder attaches to a wellhead and houses an integrated polished rod. This comes with a high pressure seal connection that replaces the conventional stuffing box to eliminate leaks.

The long stroke of the HSU enables producers to reduce costs and boost production by minimizing downtime and workovers. â&#x20AC;&#x153;The ability to long stroke gives you better gas compression in your pump for increased fillage,â&#x20AC;? said Kris Kykkanen, who is sales manager in Lloydminster. â&#x20AC;&#x153;For a producer, they can buy one piece of equipment and it can meet a wider range of wells as the stroke speed and length are both adjustable. â&#x20AC;&#x153;Whether itâ&#x20AC;&#x2122;s a small producer or a larger producer, they are able to operate their field with one system because it is much more flexible.â&#x20AC;?

The Kudu HSU is well suited for optimizing production efficiency in fractured horizontal wells where long stroking can solve problems pertaining to friction deviation, gas interference and changing production rates. ɸ Page A23

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707,305, 5,>: 5V]LTILY Éş Page A22 â&#x20AC;&#x153;The friction deviation is caused by the horizontal well where your rod string is rubbing against the tubing,â&#x20AC;? explained Fraess. â&#x20AC;&#x153;By having a long stroke length, you can slow the strokes per minute down and thereby reduce the rod tubing wear.â&#x20AC;?

The long stroke advantage in horizontal wells also applies to vertical wells. â&#x20AC;&#x153;Anything that producers have used a pumpjack on is a market for this product,â&#x20AC;? added Kykkanen.

A longer stroke length can also overcome gas interference that is caused by the fact you canâ&#x20AC;&#x2122;t put an insert pump downhole beyond a perforated interval. â&#x20AC;&#x153;When you are dealing with gas in a well, especially in an insert pump, you need to have a high compression ratio to deal with that gas so you can overcome the pressures,â&#x20AC;? said Fraess.

A longer stroke increases pump pressure and the compression ratio to combat gas interference or gas locking.

The longer stroke of the Kudu HSU also reduces the effect of rod stretch, one of the shortcomings of pumpjack units that reduces pumping efficiency. â&#x20AC;&#x153;Rod stretch can result in hundreds of cubes of oil per day left in the well,â&#x20AC;? said Kykkanen.

The HSU also gives operators the ability to efficiently change the stroke rate to match production rates from high initial rates to steady declines over the life of the well.

The stroke rate of the unit can be altered remotely by an online software package.

To change the stroke rate on a pumpjack requires costly downtime to adjust equipment such as sheaves, belts and crank pin positions.

The HSU allows operators to react quickly online to pump off conditions to change the stroking rate. â&#x20AC;&#x153;You are not making money when the well isnâ&#x20AC;&#x2122;t producing. If we can produce more with less downtime, itâ&#x20AC;&#x2122;s win-win,â&#x20AC;? said Kykkanen, who noted the feedback from HSU users has been good. â&#x20AC;&#x153;A lot of the things such as pump fillage, rod tubing wear and servicing frequency and flexibility â&#x20AC;&#x201C; those are all known â&#x20AC;&#x2DC;pain elementsâ&#x20AC;&#x2122; that producers have,â&#x20AC;? he said. â&#x20AC;&#x153;Most likely, they can think of a well that they are having those troubles with. If they are having problems, we can meet the needs with this technology.â&#x20AC;?

The development of the HSU, in partnership with HRP International, is part of Kuduâ&#x20AC;&#x2122;s strategy to move from being just a PC pump related technology company to an artificial lift supplier. â&#x20AC;&#x153;So whether thatâ&#x20AC;&#x2122;s in the thermal market supplying metal on metal pumps or high temp elastomers, or whether itâ&#x20AC;&#x2122;s in the rod pump market or the PC

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market, we have a solution for those production issues,â&#x20AC;? said Kykkanen. â&#x20AC;&#x153;In this case, we have solutions for production issues with a pumpjack well or deeper horizontal wells â&#x20AC;&#x201C; wells with high gas locking issues â&#x20AC;&#x201C; weâ&#x20AC;&#x2122;ve got a solution with the HSU. â&#x20AC;&#x153;If you are into ESP (electric submersible pump) territory, we will soon have a solution for a rodless PC pump. â&#x20AC;&#x153;We are getting into more variations on helping a production company solve their particular artificial lift issues.â&#x20AC;?

The HSU is environmentally friendly, requiring a much smaller footprint than a pumpjack and there is no lease preparation involved.

Cylinder installation is quicker than a pumpjack that requires a cement pad and the assembly of the stuffing box, horse head, bridle, carrier bar and the polished rod.

The HSU can be installed in hours by utilizing a picker truck to land the cylinder on the wellhead and hook up to hydraulic hoses to the power unit.

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This is big: a tour of the Northgate Commodity Logistics Hub Qgmj @ge] 9oYq >jge @ge]

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Â&#x201E; By Brian Zinchuk Northgate â&#x20AC;&#x201C; Thereâ&#x20AC;&#x2122;s one impression that comes through quite clearly when touring the Ceres Global Ag Northgate Commodity Logistics Hub that is currently under construction: this is big.

Indeed, the amount of land purchased for the project is not far off from the size of the city of Weyburn. Not all of it is being developed at this time, but that gives you a sense of scale. The project is valued at $70 million.

Indeed, the largest piece of iron on site isnâ&#x20AC;&#x2122;t a â&#x20AC;&#x153;normalâ&#x20AC;? excavator, but rather what Caterpillar calls a mining excavator â&#x20AC;&#x201C; in this case, a Caterpillar 5110. Itâ&#x20AC;&#x2122;s digging up some highly desirable clay on the

southeast corner of the project. The hole is so big, you can see right over the roof of the excavatorâ&#x20AC;&#x2122;s cab when standing on the rim of the hole.

Pipeline News toured the facility on Oct. 7 with Al Wilde.

Heâ&#x20AC;&#x2122;s the Regina-based professional engineer with Clifton Associates who is overseeing the project. He works under Doug Heil, construction project manager for Engineered Rail Solutions, LLC. who are the project managers. Kelly Panteluk Construction Ltd. of Estevan is the general contractor doing the extensive dirt work.

Entering the site means driving south along Highway 9, past the Canadian border station, until you are within a few metres of the U.S. border before turning east along the border road. A turn to the north takes you

into the 11-metre wide entrance. It should be wide enough to handle the large trucks that will be turning in and out of the facility once operational. There will be another entrance near the North end of the site which will be geared up for grain and bulk oil traffic which will have unloading and loading facilities for both products near the north end of the site.

The site benefits from an anomaly in Saskatchewan road building. Decades ago, the southbound side of Highway 9 was made substantially thicker than normal, allowing for large numbers of heavy potash-laden trucks to transport the mineral from Esterhazy to the rail facility just south of the border. The thicker highway was intended to handle the heavy loads without falling apart. ɸ Page A25

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makes, Wilde pointed out. An 8.7 cubic metre bucket is attached to the 5110 excavator while the 385 has about a 7.5 cubic metre bucket.

Not far away is a large gully that will need to be filled. There are

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Stopping near a large Caterpillar 385B excavator, a GPS-guided grader passes by. Itâ&#x20AC;&#x2122;s the largest non-mining excavator Caterpillar

maintained as a wildlife area. It will be in the centre of the loop track.

That loop is close to half a mile long and slightly narrower, making for a long oval.

Initial plans called for an underpass to allow grain trucks access to the sizeable grain terminal to be built inside the loop. Instead, grain will be unloaded on the outside of the north end of the loop, and conveyed either over or under the tracks. Grain rail cars will be loaded from inside the loop. ɸ Page A26

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There wasnâ&#x20AC;&#x2122;t much to Northgate, and all but one house has been removed. That house is being used as an office and will remain. â&#x20AC;&#x153;It is intended to stay. We knocked down some old ones,â&#x20AC;? said Wilde, noting there were a few surprises with septic tanks, wells and cellars.

Along the west side of the project is the abandoned CN rail line right-of-way. Some of the tracks are still in place near the border, but the rest are gone.

Looking south of 49th parallel, one sees new tracks put in place, making a curve to the east before heading north again. These tracks be-

long to BNSF, which is key to the whole project.

Itâ&#x20AC;&#x2122;s one of the few places in Canada where one can ship product on a Class 1 railway that is not either Canadian Pacific or Canadian National.

A metal Pioneer grain elevator is located along the old CN rightof-way, but no longer has a rail connection.

Heading north, there are several railbeds under construction.

Thereâ&#x20AC;&#x2122;s a lot of dirt to be moved, despite the relatively flat terrain.

Wilde said there are five scrapers; nine excavators including â&#x20AC;&#x153;toys,â&#x20AC;? i.e. mini excavators; nine 40- and 50-ton off road trucks; five dozers, three graders and five compactors. There are

five very long culverts crossing it. Each is 140 metres long. Four are 1.4 metres across, and the fifth is 1.2 metres.

Theyâ&#x20AC;&#x2122;re not taking any chances should the region have a wet year in the future.

The culverts were just in the process of being covered, with the last ones being assembled. A small finish dozer, with a GPS receiver sprouting from each end of its blade, could be seen working near the culverts.

The area to the east of the culverts will be

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Moving about half as much dirt as the Wascana Lake dig Éş Page A25 The west side will see two yard tracks, a service track and a west lead track running north/south. â&#x20AC;&#x153;Thereâ&#x20AC;&#x2122;s room for additional tracks. Thereâ&#x20AC;&#x2122;s the potential for more,â&#x20AC;? he said.

The loop will have two tracks. â&#x20AC;&#x153;Sheâ&#x20AC;&#x2122;s a big project, but not quite like the Wascana Lake dig. We took 1.4 million cubic metres out of that lake. This is roughly half that,â&#x20AC;? said Wilde,

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who looked after that high-profile project in the centre of Regina. This project, however, is somewhat more complicated in that structures have to be built with excavated earth materials while the Wascana Lake dig was basically a dig and stockpile of the excavated material as far as the dirt went.

There have been plenty of soft areas to contend with. â&#x20AC;&#x153;We deal with them on a daily basis, sand and/or saturated silt pockets with extremely high water content,â&#x20AC;? he said. â&#x20AC;&#x153;In addition to the saturated pockets the bulk of the site is overlain with a moisture sensitive silty alluvium with numerous large rocks and boulders. This layer is around one metre in depth on average and wet. Due to it being such a moisture-sensitive material that would require drying and would not make the best sub-grade as well. It would slow up construction considerably. The bulk of this is being wasted at this time and being replaced with two different clay-tills which lie beneath the surficial silty alluvium. The lower clay-till is more of a shale clay till which will be the least moisture-sensitive in the end.â&#x20AC;?

The shale-clay till that was being dug up by the aforementioned mining excavator is excellent to build the rail subgrade, according to Wilde.

The project is scheduled for operation in the fall of 2014.

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This massive Cat 5110 excavator sits in a hole deeper than the top of its cab.

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This photo on B35 is Riley ĹśÄ&#x161;Ä&#x17E;Ć&#x152;Ć?ŽŜ Ä?ƾƍŜĹ? Ć&#x161;Ĺ&#x161;Ć&#x152;ŽƾĹ?Ĺ&#x161; a slab of sidewalk concrete to access a water valve. ĹśÄ&#x161;Ä&#x17E;Ć&#x152;Ć?ŽŜ Ç Ĺ˝Ć&#x152;ĹŹĆ? ĨŽĆ&#x152; ZÄ&#x17E;Ç&#x20AC; Energy, the company that was replacing water mains Ä&#x201A;ůŽŜĹ? WÄ&#x201A;Ä?Ĺ?ÄŽÄ? Ç&#x20AC;Ä&#x17E;ŜƾÄ&#x17E; Ĺ?Ĺś Kerrobert.

This photo on B34 shows Lorne Ramsey shovelling some soil around a curb stop prior to packing it with a jumping jack packer.

Rev Energy just completed the job of replacing water ĹľÄ&#x201A;Ĺ?ĹśĆ? ŽŜ WÄ&#x201A;Ä?Ĺ?ÄŽÄ? Ç&#x20AC;Ä&#x17E;ŜƾÄ&#x17E; Ĺ?Ĺś Kerrobert.

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1RZ :DWHUĂ RRG 3URGXFWLRQ 6\VWHPV Estevan â&#x20AC;&#x201C; The assets of Waterflood Sales and Service have been picked up by PS Electric. The new entity is now known as Waterflood Production Services Ltd., or WPS. Harvey King is president and sole proprietor of PS Electric and a number of affiliated companies, including Cobra Rentals Ltd. He was a shareholder in Waterflood Sales and Service prior to the purchase of its assets. â&#x20AC;&#x153;Waterflood Sales and Service encountered financial difficulties. We bought the assets of the company, and are active once again for local service of pumps, as well as the manufacturing entity,â&#x20AC;? he said.

The change in ownership took place July 2.

Waterflood specializes primarily in skid packages. That includes pump systems and headers for field installations. They are typically used in batteries and satellites.

Projects are underway, King noted, with one three-pump affair and one two-pump with filters set-up. Another filter skid was under construction when Pipeline News spoke to him on Oct 3. â&#x20AC;&#x153;Thereâ&#x20AC;&#x2122;s quite a variety weâ&#x20AC;&#x2122;re working on,â&#x20AC;? he said. â&#x20AC;&#x153;My business plan is to get people working and generating chargeable time. There is work to sustain 28 people, and weâ&#x20AC;&#x2122;ve hired more to go up.â&#x20AC;?

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PS Electric did not buy Waterfloodâ&#x20AC;&#x2122;s ALX pumpjack assets. That went to Trilogy Tubulars of Estevan, King said. â&#x20AC;&#x153;Iâ&#x20AC;&#x2122;m just interested in pumps and skids.â&#x20AC;?

WPS works with a lot of positive displacement pumps, and carries the Gardiner Denver line. They are used in medium-to-high pressure disposal wells and injector wells.

The most popular variety of these pumps is the triplex, with three plungers, according to King. Five and fewer plungers are also available.

The market is still good, he said. â&#x20AC;&#x153;Maintenance is still there. The rest of the industry will continue to produce. ɸ Page A30

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Working on carbon capture Éş Page A29 â&#x20AC;&#x153;I believe the secret to WPS is maintenance, and exceptional customer service, too.â&#x20AC;?

The last time Pipeline News spoke to PS Electric, they were gearing up for the SaskPower Boundary Dam Carbon Capture Project. However, SNC Lavalin, the general contractor, chose not to bid out that work, King said. â&#x20AC;&#x153;I wasnâ&#x20AC;&#x2122;t big enough, the way they presented it.â&#x20AC;?

PS Electric has picked up more work during the commissioning phase, with 19 people on site in mid-October. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;ll be 25 to 30 people there shortly, doing tidy work and commissioning,â&#x20AC;? King said.

With the addition of WPS, the company known as PS Electric has approximately 60 people on staff, essentially doubling the original number. That does not count union-dispatched workers on SaskPower projects.

King is hopeful there will be more work on the horizon for additional activated carbon projects.

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.HUUREHUW GUDZV KRWHO KRPH GHYHORSPHQW Â&#x201E; By Geoff Lee Kerrobert â&#x20AC;&#x201C; Kerrobert has found a white knight to help slay its shortage of rental housing and new hotel rooms to accommodate the influx of oilfield workers in the area.

Al-Sask Ventures Inc., an Alberta-based developer, plans to begin some construction this fall on an 85-room hotel on eight acres of commercial property fronting Pacific Avenue at the west end of town.

Company president and coowner James Carpenter announced the $9-million hotel project at the town office to a lunch time gathering of community leaders and media on Sept. 18.

Carpenter also promises to have up to 20 more modular homes available for rent by November on a slew of infill lots Al-Sask previously purchased.

The big news of the day though was the announcement of the new hotel project. â&#x20AC;&#x153;September 18 is a pretty exciting day for us. We are excited to announce that we going to be building a hotel with at least 85 rooms,â&#x20AC;? said Carpenter during a morning tour of the construction site.

Carpenter said the timing and the demand is there for a hotel and rental housing given the stepped up level of oil and gas activity and construction in the region.

Torq Transloading Inc. announced plans on Aug. 14 to build a $100-million crude-by-rail terminal just south of town, with approximately 200 construction jobs anticipated. â&#x20AC;&#x153;The high need for hotel rooms and extended stay rooms makes now the time to act,â&#x20AC;? said Carpenter.

Carpenter said Northern Blizzard told him they plan to drill 150 wells a year between Macklin and Kerrobert and like Torq, they need hotel rooms and attainable rental housing immediately.

Al-Sask purchased the hotel land in 2012. A fast foot outlet, a restaurant and a convenience store and gas bar are also included in the long-term site plan.

With Al-Saskâ&#x20AC;&#x2122;s commitments endorsed by Mayor Erhard Poggemiller, it was expected council

struction methods in a factory with assembly on site by Tricon Developments Inc. Al-Sask is co-owned by Carpenter and Ken Erickson who each have their own suite of companies.

Al-Sask has offices in Lacombe and Didsbury, Alberta.

The company is currently building a Tim Hortons and a Centex gas outlet in Didsbury and has been working on housing solutions in Kerrobert for over a year.

Carpenter attended the Municipal Showcase and Developer & Builder Forum in Saskatoon in June 2012 and met up with Poggemiller who pitched Kerrobert as a good place to invest in home building. â&#x20AC;&#x153;The initial interest was the fact this community was getting a hospital. We were drawn to that.

It created a sense of stability,â&#x20AC;? said Carpenter. â&#x20AC;&#x153;We took the trek up here and met with Erhard, and over the period of the last year and a bit, weâ&#x20AC;&#x2122;ve met quite a few times with him and with council. â&#x20AC;&#x153;We felt that it was a great place to invest, so we did a deal to purchase the land for the hotel last year. â&#x20AC;&#x153;We were already in the works for the plans when some of the large industrial and oil and gas developments were announced in the area.â&#x20AC;?

Arrow Reload Systems Inc. built the first crude-by-rail transloading facility in Kerrobert earlier this year, and the recent buzz about Torqâ&#x20AC;&#x2122;s plan continues to generate excitement. â&#x20AC;&#x153;My wife said â&#x20AC;&#x2DC;amazing timingâ&#x20AC;&#x2122; to be positioned to respond.

We stepped out and took a chance on the community, believing, what :Ä&#x201A;ĹľÄ&#x17E;Ć? Ä&#x201A;Ć&#x152;Ć&#x2030;Ä&#x17E;ĹśĆ&#x161;Ä&#x17E;Ć&#x152; ŽĨ ůͲ^Ä&#x201A;Ć?ĹŹ sÄ&#x17E;ĹśĆ&#x161;ĆľĆ&#x152;Ä&#x17E;Ć? /ĹśÄ?Í&#x2DC; Ć&#x2030;ĹŻÄ&#x201A;ĹśĆ? Ć&#x161;Ĺ˝ Ć?Ä&#x17E;Ć&#x161; ĆľĆ&#x2030; Ä&#x201A;Ć&#x2030;Ć&#x2030;Ć&#x152;Ĺ˝Ç&#x2020;Ĺ?ĹľÄ&#x201A;Ć&#x161;Ä&#x17E;ĹŻÇ&#x2021; ĎŽĎŹ Ä&#x201A;Ä&#x161;Ä&#x161;Ĺ?Ć&#x;ŽŜÄ&#x201A;ĹŻ the mayor and council have to say ĹśÄ&#x17E;Ç ĹľĹ˝Ä&#x161;ƾůÄ&#x201A;Ć&#x152; Ć&#x152;Ä&#x17E;ĹśĆ&#x161;Ä&#x201A;ĹŻ Ĺ&#x161;ŽžÄ&#x17E;Ć? Ĺ?Ĺś <Ä&#x17E;Ć&#x152;Ć&#x152;Ĺ˝Ä?Ä&#x17E;Ć&#x152;Ć&#x161; Ä?Ç&#x2021; EĹ˝Ç&#x20AC;Ä&#x17E;ĹľÄ?Ä&#x17E;Ć&#x152; Ć&#x161;Ĺ˝ Ĺ?Ĺ˝ Ç Ĺ?Ć&#x161;Ĺ&#x161; ÄŽĆ&#x152;Ć?Ć&#x161; Ć&#x161;Ç Ĺ˝ Ĺ&#x161;ŽžÄ&#x17E;Ć? Ć&#x161;Ĺ&#x161;Ä&#x201A;Ć&#x161; about, we saw as opportunity.â&#x20AC;? Ç Ä&#x17E;Ć&#x152;Ä&#x17E; Ä?ŽŜĆ?Ć&#x161;Ć&#x152;ĆľÄ?Ć&#x161;Ä&#x17E;Ä&#x161; ĹľĹ?Ä&#x161;Ͳ^Ä&#x17E;Ć&#x2030;Ć&#x161;Ä&#x17E;ĹľÄ?Ä&#x17E;Ć&#x152;Í&#x2DC; Al-Sask initially plans to own would issue a building permit for tion.â&#x20AC;? and operate the hotel as an indethe hotel shortly.

Engineering and design plans pendent brand, with the hope of â&#x20AC;&#x153;I think itâ&#x20AC;&#x2122;s wonderful. We for the hotel are underway, with a attracting a national brand down could use another hotel. Weâ&#x20AC;&#x2122;ve had planned opening in 2014. the road. a shortage of rooms in our comâ&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re going to be doing the Carpenter said the company is munity. People have always gone geo-tech right away and the topo open to entertaining any local busito Kindersley or to Luseland or to survey of the property. We plan to ness ideas for the overall developUnity. build over the winter,â&#x20AC;? said Carpen- ment site or partnerships. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s very timely and hopefully ter. â&#x20AC;&#x153;We will be looking for people everything will fall into place and The hotel and the new houses to help us with the gas station,â&#x20AC;? he it wonâ&#x20AC;&#x2122;t take too long for construcwill be built using modular consaid.

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Modular construction for hotel and homes James Carpenter reveals the conceptual drawings for a new 85room hotel that his development company, Al-Sask Ventures will construct in Kerrobert. Carpenter broke the news during a lunch ĞǀĞŶƚ ^ĞƉƚ͘ ϭϴ Ăƚ ƚŚĞ ƚŽǁŶ ŽĸĐĞ͘ The hotel will use modular conƐƚƌƵĐƟŽŶ ŵĞƚŚŽĚƐ͘

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W Page B1 Carpenter is also keen on Poggemiller’s idea for Al-Sask to construct an indoor pool at the hotel that could be leased to the town at $1 a year to operate.

“The mayor has really helped to encourage us along to help meet community needs,” said Carpenter.

“One of the things he’s brought up has been the need for a swimming pool. The pool here may be on its last legs.

“As a hotel opera-

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tor, sometimes it’s scary to put in a pool. You put in a pool and you have 85 people staying in your hotel and maybe 20 or 30 use it.”

One idea would be for the Town to charge admission to pay for upkeep while accommodating hotel guests to access the facility.

“This is something myself and Carpenter have kind of floated around,” said Poggemiller.

“Council hasn’t had any opportunity to discuss that yet. I think it’s a great partnership.

“Our swimming pool is in need of some major repair. This would be a year-round facility.

“It would be very well received by the community. It would be a real drawing card for residents coming to town.

“We would operate it. They would be the builder of it and they would initially own it. I don’t know how that would all play out in the future, but we

would be more than happy to be a partner with them.”

The Town has sold most of its available infill lots to Al-Sask, which initially set out to build modular homes for purchase but switched to rentals to meet the demand for transitional housing.

The first two modular homes were set up on a foundation with no basement and rented in a heartbeat with a waiting list for the next batch.

“It’s pretty exciting.

We focused on attainable housing,” said Carpenter.

“I think that’s the market that gets overlooked at times like this in a heated market as people are building the higher-end homes.

“The average Joe cannot afford a $400,000 property.

We need to meet the needs of the worker.

Without the worker, we won’t have a vibrant economy.”

Al-Sask has plans to open a phase of 20 to 40 lots next spring near the golf course that will be for sale modular homes.

“They will be on an engineered foundation. There will be options for basements and attached garages. It depends on the market demand,” said Carpenter.

“We will do our own services subcontracted to a Saskatchewan operator.”

Carpenter said some of the homes could be priced in the $120,000 to $150,000 range.

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&1 GHUDLOPHQW FORVHV /DQGLV VFKRRO Unity â&#x20AC;&#x201C; A school was closed for the day in the village of Landis Saskatchewan as a precaution following a derailment of a Canadian National Railway train west of the community on the morning of Sept. 25.

The derailment shut down rail traffic on the CN mainline until 10 p.m. when the track was back in service.

The initial response included a hazardous material crew sent to the scene to clean up a small volume of lube oil that leaked from one of the 17 cars that derailed.

One of the cars filled with ethanol was on its side, but nothing was leaking out, according to provincial authorities.

RCMP from Unity secured the area while fire crews from Wilkie and Biggar quickly put out a grass fire near the

derailment. â&#x20AC;&#x153;This was a fire that was caused as a result of the derailment, but no cars have gone up in flames,â&#x20AC;? said spokesperson Sgt. Craig Cleary in Regina. â&#x20AC;&#x153;As for the school closure Cleary said, â&#x20AC;&#x153;That was a precautionary thing that the police liaised with the school. â&#x20AC;&#x153;It was decided that would be a good idea just to cancel it just in the event something did happen.â&#x20AC;?

Cleary agreed that the July rail disaster at Lac-Megantic in Quebec where a runaway crude oil train exploded and killed 47 people has heightened awareness about safety. â&#x20AC;&#x153;That certainly brought everything to the forefront there,â&#x20AC;? he said.

He noted that fortunately no one was injured in the derailment near Landis.

A media conference to discuss the accident was held at the Unity RCMP detachment at 11:30 a.m. that morning.

The derailment of the westbound train carrying 130 cars with mixed commodities occurred at approximately 4:15 a.m.

The RCMP responded to the emergency at 4:50 a.m. and Cleary said the investigation was â&#x20AC;&#x153;pretty much turned over to the CN policeâ&#x20AC;? by 11.a.m. when he spoke with Pipeline News. â&#x20AC;&#x153;If thereâ&#x20AC;&#x2122;s any sort of a criminal element to it then obviously we would become involved again,â&#x20AC;? he said. â&#x20AC;&#x153;As such, our involvement in the matter is pretty much concluded.â&#x20AC;?

CN officials will investigate all possible causes including the trainâ&#x20AC;&#x2122;s speed. â&#x20AC;&#x153;All factors relevant to the incident are going to be under investigation,â&#x20AC;? said CN spokesperson Warren Chandler that morning. â&#x20AC;&#x153;As for that leaked

oil from one car, Chandler said, â&#x20AC;&#x153;One of the derailed cars is leaking lube oil. In relation to

the size of the tank car itâ&#x20AC;&#x2122;s a relatively small amount. â&#x20AC;&#x153;CN crews have

immediately begun a process using vacuum trucks to reclaim the spilled product.â&#x20AC;?

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(306) 634-2835

(306) 842-5081 Fax: (306) 842-5309

Fax (306) 634-2797

www.apexdistribution.com

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Gilliss Casing Services Inc. handles casing sizes from 2 3/8â&#x20AC;? up to 20â&#x20AC;?

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GILLISS CASING SERVICES INC. FLOAT EQUIPMENT-REAMERS Manager: Dylan Gilliss 421-8158

Sales & Safety: Ryan Wallington 421-7011

Sales: Logan Gilliss 421-8481

Estevan, SK www.gillisscasingservices.com

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

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707,305, 5,>: 5V]LTILY

2LOĂ&#x20AC; HOG FRPSDQLHV WDSH XS IRU +RFNH\ 'D\ Lloydminster â&#x20AC;&#x201C; Lloydminster and area oil and gas companies are on a public relations breakaway as sponsors and volunteers for a five day Hockey Day in Canada celebration in Lloydminster Jan. 14-18.

The event will include an outdoor winter festival culminating in Scotiabank Hockey Day in Canada. Itâ&#x20AC;&#x2122;s a nationally televised event produced annually by CBC in a host city.

CBC will air more than 13 hours of coverage from Lloydminster, no doubt with a mention or two of local corporate sponsors and volunteers from the ranks of the oilfield.

Project manager Cindy Rekimowich said oil and gas companies are taking the lead in buying sponsorships with five of the first 11 sold by Sept. 26 going to oilfield companies.

There are at least 27 sponsorships up for grabs, for which they are receiving daily inquiries from oil and gas companies.

With a month to go in the sales blitz, Rekimowich said, â&#x20AC;&#x153;Theyâ&#x20AC;&#x2122;re taking half of our sponsorships so far. â&#x20AC;&#x153;They have been very receptive to getting involved and wanting to be a part of the big event.â&#x20AC;?

Mikeâ&#x20AC;&#x2122;s Oilfield purchased the top level senior sponsorship for $30,000 for the winter festival that will include an outdoor rink set up at the Lloydminster Exhibition Grounds. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re going to call it Mikeâ&#x20AC;&#x2122;s Oilfield Park for the week,â&#x20AC;? said Rekimowich. â&#x20AC;&#x153;They are absolutely amazing. They have supported the community for years and years.â&#x20AC;?

At a later date, the outdoor rink will moved next to the Ross Robertson Arena to kick off fundraising to expand that facility into a double indoor rink.

The City hopes to sell the naming rights for the twin arena for $250,000 once the project moves forward. â&#x20AC;&#x153;We are looking at four different phases, starting with expanding dressing rooms,â&#x20AC;? said Rekimowich. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s a hockey-mad town. We have three kids in it. We go hard. Minor hockey grew again this year.

They have over 1,000 kids. They have two new teams and they are tight for ice.

X Page B5

Cindy Rekimowich, project manager for Hockey Day in Ä&#x201A;ĹśÄ&#x201A;Ä&#x161;Ä&#x201A; ĨÄ&#x17E;Ć?Ć&#x; Ç&#x20AC;Ĺ?Ć&#x; Ä&#x17E;Ć? :Ä&#x201A;ĹśÍ&#x2DC; ϭϰͲϭϴÍ&#x2022; Ĺ?Ć? Ĺ&#x161;Ä&#x201A;Ç&#x20AC;Ĺ?ĹśĹ? ŜŽ Ć&#x2030;Ć&#x152;Ĺ˝Ä?ĹŻÄ&#x17E;Ĺľ Ć?Ä&#x17E;ĹŻĹŻĹ?ĹśĹ? Ä&#x17E;Ç&#x20AC;Ä&#x17E;ĹśĆ&#x161; Ć?Ć&#x2030;ŽŜĆ?Ĺ˝Ć&#x152;Ć?Ĺ&#x161;Ĺ?Ć&#x2030;Ć? Ć&#x161;Ĺ˝ Ĺ˝Ĺ?ĹŻ Ä&#x201A;ĹśÄ&#x161; Ĺ?Ä&#x201A;Ć? Ä?ŽžĆ&#x2030;Ä&#x201A;ĹśĹ?Ä&#x17E;Ć? Ć&#x161;Ĺ&#x161;Ä&#x201A;Ć&#x161; Ä&#x201A;Ć&#x152;Ä&#x17E; Ä&#x201A;ĹŻĆ?Ĺ˝ Ć?Ć&#x161;Ä&#x17E;Ć&#x2030;Ć&#x2030;Ĺ?ĹśĹ? ĆľĆ&#x2030; Ç Ĺ?Ć&#x161;Ĺ&#x161; Ç&#x20AC;ŽůƾŜĆ&#x161;Ä&#x17E;Ä&#x17E;Ć&#x152;Ć? Ä&#x201A;ĹśÄ&#x161; Ĺ?Ĺ?Ĺ&#x152; Ĺ?ŜͲŏĹ?ĹśÄ&#x161; Ä&#x161;ŽŜÄ&#x201A;Ć&#x; ŽŜĆ?Í&#x2DC; WĹ&#x161;Ĺ˝Ć&#x161;Ĺ˝ Ä?Ç&#x2021; 'Ä&#x17E;Žč >Ä&#x17E;Ä&#x17E;

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707,305, 5,>: 5V]LTILY W Page B4 â&#x20AC;&#x153;Time is definitely tight at the rinks. New rinks are something we will need sooner than later.â&#x20AC;? â&#x20AC;&#x153;I know when we do move into that project, I know there are a lot of community-minded oil and gas companies in Lloydminster that always step up to the plate when it comes time.â&#x20AC;?

All of the available Hockey Day in Canada sponsorships from senior to junior, midget and bantam and peewee levels will provide good value for each company.

Sponsors will get tickets, name recognition and a feel good experience for helping to put Lloydminsterâ&#x20AC;&#x2122;s oil and gas community and hockey connections in the national spotlight.

NHL stars such as Scott Hartnell, Clarke MacArthur and Braden Holtby grew up playing hockey in Lloydminster, along with a long list of former players. â&#x20AC;&#x153;People want to be involved because itâ&#x20AC;&#x2122;s going to put Lloydminster on the map,â&#x20AC;? said Rekimowich. â&#x20AC;&#x153;Money that they donate will stay in Lloydminster. The money will go towards putting on events for Lloydminster, then we will be showcased on national TV.â&#x20AC;?

The two junior level packages were purchased by Fountain Tire and Scotiabank, which are funding respective interactive hockey games and a musical celebration of hockey at the Vic Juba Theatre.

The latter concert will be hosted by CBC celebrity Ron MacLean who will also team up with Don Cherry for the Hockey Day in Canada live broadcast.

Look for other CBC notables in town that week including Cassie Campbell-Pascall and possibly celebrities such as Dick Irvin and Wendel Clark.

Raider Well Servicing, Ever Green Ecological and Kingâ&#x20AC;&#x2122;s Husky purchased the first three of four midget sponsorship packages that include an NHL alumni game at the Civic Centre arena.

These companies are also supporting a celebrity breakfast and a banquet at the Stockade Convention Centre.

L&L Oilfield and Musgrave Agencies were the first two to speak for the four available bantam level sponsorships for winterfest, fireworks and volunteer recognition apparel opportunities.

There are 16 peewee level sponsorships that are selling fast as the hype for Hockey Day in Canada builds along with the Winter Olympics that will follow from Feb. 7-23 in Sochi, Russia. â&#x20AC;&#x153;The excitement around sports and hockey will be large,â&#x20AC;? said Rekimowich.

The peewee sponsors will help support a slew of events including playersâ&#x20AC;&#x2122; and coachesâ&#x20AC;&#x2122; clinics, winter classic games with minor hockey teams and a ball hockey game.

All of the winter festival events will be free, but the bulk of Hockey Day in Canada events will require paid admission with tickets going on sale Nov. 1.

There will however, be free community skate with the Stanley Cup. â&#x20AC;&#x153;It will be a chance of a lifetime for a lot of kids,â&#x20AC;? said Rekimowich â&#x20AC;&#x153;The cup and celebrities will go out to schools and Onion Lake. Those kids are going to see stuff that will never get a chance to see ever again.â&#x20AC;?

Rekimowich is continuing to build her army of volunteers that will include dozens of oilfield employees by the Nov. 5 sign-up date. â&#x20AC;&#x153;Our community is saturated with oil and gas employees,â&#x20AC;? laughed Rekimowich. â&#x20AC;&#x153;From our committees, we have 40 board members. I would say a quarter of them are involved in the oil and gas industry. â&#x20AC;&#x153;The rest of the committees will be formed and volunteers will work three or four hours. It will play a big part in making sure the event is successful.â&#x20AC;?

Other corporations are stepping forward to make â&#x20AC;&#x153;gift in kindâ&#x20AC;? donations of food or equipment for the week-long celebration.

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Europump trumpets Horizon HD pump Â&#x201E; By Geoff Lee Lloydminster â&#x20AC;&#x201C; Europump Systems Inc. expects its new Horizon HD chemical pump will fill a void in the heavy oil market as an economical alternative to explosive proof electric motor pumps.

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The demand for the Horizon HD is picking up as early adapters begin to realize the annual savings from the low maintenance needs of the pump since it was launched in Lloydminster in late 2012. â&#x20AC;&#x153;I think 2014 will be a strong market year,â&#x20AC;? said Chris Laycock, facility manager at Europumpâ&#x20AC;&#x2122;s assembly shop in Lloydminster. â&#x20AC;&#x153;If there is a chemical injector on a well that is driven electrically, then thereâ&#x20AC;&#x2122;s a cost-saving opportunity.â&#x20AC;?

The Horizon HD is a hydraulically driven piston pump powered by the oil pump on the power unit engine.

Its design eliminates the need for an auxiliary hydraulic motor or a 12-volt electric motor that drives most of the competing chemical pumps on the heavy oil market.

The Horizon HD is typically mounted near the chemical tank and runs off direct engine oil pressure. â&#x20AC;&#x153;What makes this stand out is, we have eliminated the need for the electric or auxiliary hydraulic driven functionality,â&#x20AC;? said Laycock. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s a simpler model and thereâ&#x20AC;&#x2122;s less service required.â&#x20AC;?

The Horizon HD is competitively priced without the upfront cost of a hydraulic motor and it is economical to operate with no electric motor to service and repair. â&#x20AC;&#x153;The savings mostly come from serviceability,â&#x20AC;? said Laycock. â&#x20AC;&#x153;Typically, a 12-volt motor will wear out in 12 to 14 months, and so you are not replacing that motor or having to deal with down time.â&#x20AC;?

The cost benefits of the Horizon HD help to sell it as a viable alternative to explosive proof electric motor chemical pumps that are required for injecting hazardous chemicals downhole.

X Page B7

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Europumpâ&#x20AC;&#x2122;s new Horizon HD chemical pump was launched in Lloydminster in late ĎŽĎŹĎ­ĎŽÍ&#x2DC; dĹ&#x161;Ä&#x17E; Ĺ&#x161;Ç&#x2021;Ä&#x161;Ć&#x152;Ä&#x201A;ƾůĹ?Ä? Ä&#x161;Ć&#x152;Ĺ?Ç&#x20AC;Ä&#x17E;Ĺś Ć&#x2030;Ĺ?Ć?Ć&#x161;ŽŜ Ć&#x2030;ƾžĆ&#x2030; Ĺ?Ć? Ä&#x201A; ĹŻĹ˝Ç ĹľÄ&#x201A;Ĺ?ĹśĆ&#x161;Ä&#x17E;ĹśÄ&#x201A;ĹśÄ?Ä&#x17E; Ä&#x201A;ĹŻĆ&#x161;Ä&#x17E;Ć&#x152;ĹśÄ&#x201A;Ć&#x;Ç&#x20AC;Ä&#x17E; Ć&#x161;Ĺ˝ Ä&#x17E;Ç&#x2020;Ć&#x2030;ĹŻĹ˝Ć?Ĺ?ŽŜ proof electric motor chemical pumps.

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www.europump.ca r (780) 872.7084

306-634-7977

441 4th Street, Estevan, SK highenergy@sasktel.net

707,305, 5,>: 5V]LTILY W Page B6 â&#x20AC;&#x153;The chemicals that typically go through these units are considered a hazardous material,â&#x20AC;? said Laycock. â&#x20AC;&#x153;Therefore, if you do run electric â&#x20AC;&#x201C; depending on the code and the area you are in â&#x20AC;&#x201C; you have to run an explosion proof electric motor which increases your costs quite significantly.â&#x20AC;?

Europump partnered with Plainsman Manufacturing to design the Horizon HD pump that has undergone an extensive field trial and market testing period to fine tune its unique functionality. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;ve taken an old design and modified it â&#x20AC;&#x201C; weâ&#x20AC;&#x2122;ve had some good reviews on it,â&#x20AC;? said Laycock. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s taken us probably a good six to 12 months to iron out what we call the kinks. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;ve gone past that in the last six months. Weâ&#x20AC;&#x2122;ve got the

product where we want it to be. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s fully marketable.

Weâ&#x20AC;&#x2122;ve sold several down into the Macklin heavy oil and area and some up north. Overall acceptance will come when producers realize cost savings. â&#x20AC;&#x153;Typically, it takes producers a good year before they realize the product savings themselves.â&#x20AC;?

The development of the Horizon HD fits Europumpâ&#x20AC;&#x2122;s mission to focus on solutions that enable customers to improve operating efficiencies while reducing their impact on the environment. â&#x20AC;&#x153;We have full-time employees that are interacting with producers as well as our distributors to bring any sort of customer request or initiative to light,â&#x20AC;? said Laycock. â&#x20AC;&#x153;Can it work? Can we save the customer money? That is something we definitely pride ourselves on.â&#x20AC;?

The Horizon HD

pump comes with a clear plastic top which enables a visual check for any leaks, and they that can usually be fixed with the turn of a wrench.

The unit is capable of pumping more than 35 litres of chemical fluid per day with a half-inch plunger and is available in a single or dual head configuration.

The dual head option allows producers to inject two different chemicals at once or double-load the same chemical depending on the downhole application.

The market for chemical pumps is limitless as long as oil and gas producers keep injecting chemicals into their wells or production fluid to treat problems and boost production. â&#x20AC;&#x153;There is a strong market everywhere; anywhere thereâ&#x20AC;&#x2122;s sand, water and oil,â&#x20AC;? said Laycock. â&#x20AC;&#x153;The newer chemicals today are helping to

WHERE ENERGY MEETS SAFETY

break that out before it gets to surface or suspending it in the product to bring it to surface so it can be separated at surface instead of downhole. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s got applications in Lloydminster and Bonnyville â&#x20AC;&#x201C; most heavy oil areas.â&#x20AC;?

At the Lloydminster shop, crews are working flat out building hydrau-

â&#x20AC;&#x153;Contact us for a complete range of our bottom hole assembly and related equipment.â&#x20AC;?

Cordell Janssen District Manager 306-634-8828 cordell.janssen@nov.com

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Conrad Meili Downhole Sales 306-471-0071 conrad.meili@nov.com

93 Panteluk Street Estevan, SK S4A 2A6 www.nov.com/downhole

We support the people who keep our communities safe.

Our Safe Community program provides ďŹ reďŹ ghters, police departments and other ďŹ rst responders with funding for everything from equipment to training. The program gives the men and women who protect us the support they need to ensure the safety and wellbeing of our communities, now and into the future.

Enbridge delivers more than the energy you count on. We deliver on our promise to help make communities better places to live.

Itâ&#x20AC;&#x2122;s part of the reason we were named one of the Global 100 Most Sustainable Corporations in the World.

Enbridge.com/InYourCommunity

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the busiest for all sales service-oriented companies and also producers.

This is our busy time,â&#x20AC;? said Laycock. â&#x20AC;&#x153;My role is to facilitate the production of our surface power units.

Essentially, when a customer requests a product, itâ&#x20AC;&#x2122;s our job to make sure it is delivered and itâ&#x20AC;&#x2122;s built with quality.â&#x20AC;?

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lic and electric surface drives. â&#x20AC;&#x153;Horizon is an excellent addition to these units,â&#x20AC;? said Laycock.

The shop is also busy building a variety of generators and hydraulic surface drives as well as distributing accessories for those products. â&#x20AC;&#x153;The fourth quarter of every year is typically

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/OR\G 63( GLJHVWV VDIHW\ SURFHVV WDON Â&#x201E; %\ *HRII /HH Lloydminster â&#x20AC;&#x201C; Ian Hamilton is on a mission to help oil and gas companies better manage human and organizational risk in order to improve process safety on the job.

Hamilton, who

heads the human factors global team for Environmental Resources Management in the U.K., spoke to the September technical lunch meeting of the Lloydminster Society of Petroleum Engineers. â&#x20AC;&#x153;I want to talk about the role that

human error can play in the risk of major accidents,â&#x20AC;? said Hamilton who is a distinguished lecturer. â&#x20AC;&#x153;In particular, I want to talk about how you can recognize that risk, and hopefully, what you can do to control it.â&#x20AC;?

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Hamilton has worked in a number of high hazard industries during his career,

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including spending approximately 15 years in the oil and gas sector.

He said that within safety critical industries, human factors significantly contribute to over 95 per cent of failures. â&#x20AC;&#x153;Human error represents the biggest portion of risk,â&#x20AC;? he said, simply because itâ&#x20AC;&#x2122;s human nature to make mistakes.

Hamilton said process safety hazards can be introduced unwittingly and are caused by the accumulative chronic change to the integrity of equipment, the quality of practice and the management of

safety.

Specifically, process safety hazards are due to the â&#x20AC;&#x153;normalization deviationâ&#x20AC;? of procedures.

Hamilton cited the example of an airplane jack screw designed to be lubed every 400 hours that got pushed up over time to 10,000 hours.

The part failed in flight, leading to a crash and loss of life for all those onboard. â&#x20AC;&#x153;We think we are optimizing the system and making it better,â&#x20AC;? he said. â&#x20AC;&#x153;If we keep pushing the system down that line, we are actually increasing its fragility.â&#x20AC;?

X Page B9

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They can be applied to any asset upstream or downstream.

Itâ&#x20AC;&#x2122;s important, noted Hamilton, to identify vulnerabilities that are creeping in and manage them by posing risk questions. â&#x20AC;&#x153;We are under a lot of operating pressure. We have to make changes, but when we make those changes, make the changes based on an assessment of risk not just for economic reasons,â&#x20AC;? said

Hamilton.

In other news, the Lloydminster SPE chapter is one of nine recipients of the 2013 Presidentâ&#x20AC;&#x2122;s Award for section excellence. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s a pretty big accomplishment for the area,â&#x20AC;? said SPE board member and lunch host Mike McIntosh.

McIntosh put the award into perspective noting, there are over 100,000 SPE members in multiple countries throughout the world.

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W Page B8 Hamilton asserted that process safety is achieved and maintained through a combination of technical and human control measures that should work in harmony.

He termed this a â&#x20AC;&#x2DC;sociotechnical systemâ&#x20AC;&#x2122; that relies for its performance on the successful interactions between people, technology and processes.

In other words, organizational integrity should complement technical integrity especially knowing that most failures are attributable to human errors. â&#x20AC;&#x153;Yet when we go about the job of managing process safety, we focus on technical safety measures,â&#x20AC;? he said. â&#x20AC;&#x153;I hear all the time from people â&#x20AC;&#x201C; â&#x20AC;&#x2DC;itâ&#x20AC;&#x2122;s inherently safe; itâ&#x20AC;&#x2122;s designed to be safe.â&#x20AC;&#x2122; â&#x20AC;&#x153;Every one of those technical measures like automatic pressure valves have to be inspected, tested and operated by people, so organizational integrity is just as important as technical integrity.â&#x20AC;? â&#x20AC;&#x153;Regulators around the world are increasingly asking â&#x20AC;&#x2DC;do you know what the safety critical tasks are and do you know what the risk of human error is associated with those safety critical tasks?â&#x20AC;&#x2122; Testing, purging, calibration, sampling, maintaining, calculating mud weight, entering vessels and lifting are examples of safety critical tasks.

Safety critical tasks are defined as activities that people are expected to perform to prevent an incident or to prevent escalation in the event an incident does occur. â&#x20AC;&#x153;How do we integrate human factors into safety critical tasks?â&#x20AC;? Hamilton asked.

He suggested using a bow tie diagram showing the hazards, the things can go wrong, and the control measures in place to control a risk in process safety. â&#x20AC;&#x153;Thatâ&#x20AC;&#x2122;s the model I want to use to insert a consideration of human error into our planning for technical safety and process safety management,â&#x20AC;? he said.

The integration process involves performing a safety critical task analysis. â&#x20AC;&#x153;We recognize where those errors can occur, and we have to plug those into our safety model,â&#x20AC;? said Hamilton. â&#x20AC;&#x153;The way we can do that plug in is in a bow tie analysis.â&#x20AC;?

Hamilton presented examples of human failure in safety critical tasks and how these can be represented in bow tie diagrams, along with technical safety elements. â&#x20AC;&#x153;What weâ&#x20AC;&#x2122;ve got to recognize is when technical measures fail, itâ&#x20AC;&#x2122;s almost invariably because there has been human error either in the planning of work or the execution of work,â&#x20AC;? he said.

A blowout preventer, for example, might fail to operate if there is not proper power due to depleted batteries.

He concluded that human factors represent the greatest proportion of risk in process safety. â&#x20AC;&#x153;We can control that better if we understand the tasks that people perform that ensure the reliability of the technical safety measures that we rely on,â&#x20AC;? he said. â&#x20AC;&#x153;Data shows us that failure to follow procedures is one of the primary causes of accidents.

We need to make sure the procedure is well designed and fit for purpose. â&#x20AC;&#x153;Organizational integrity measures give us a way of developing leading indications of how

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7LPH IRU D ELJJHU SXPS VKRS 3HUIRUPDQFH 3XPSV Estevan â&#x20AC;&#x201C; Two-and-a-half years in, and Estevanâ&#x20AC;&#x2122;s Performance Pump Service Ltd. has outgrown its home and is looking for larger digs.

The company is owned by partners Kent Phillips and Cort Barker.

Phillips spent 10 years with one of the larger area pump and skid-package companies in the area, then a further 11 years setting up and running a similar

division with another company. Then in 2011 Phillips and Barker, who apprenticed under him, set out on their own. â&#x20AC;&#x153;I worked for Kent over there for five or six years,â&#x20AC;? said Barker. â&#x20AC;&#x153;Our main work is fixing water disposal pumps.â&#x20AC;?

X Page B12

Crude Oil & Saltwater Transfers Hot Fresh Water Access To Fresh Water Available Freshwater Hauling Service Work

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Expansion planned sooner than later W Page B11 Phillips added, â&#x20AC;&#x153;We do submersible pumps (a.k.a. trash pumps). We do a lot of progressing cavity pumps. We fix it, sell it, repair or build it.â&#x20AC;?

As the Bakken field has matured, several companies are moving to waterflood as a secondary recovery technique. â&#x20AC;&#x153;They still need to pump the water down.

They just need different pumps â&#x20AC;&#x201C; injection versus disposal,â&#x20AC;? Phillips said.

Barker added, â&#x20AC;&#x153;The more pumps you put in, the more service there is.â&#x20AC;? â&#x20AC;&#x153;With high pres-

sures, things tend to wear out faster,â&#x20AC;? Phillips said. Hopefully that means more work for them.

Triplex plunger pumps are about 75 per cent of their work, but they also do a lot with progressing cavity pumps. â&#x20AC;&#x153;Theyâ&#x20AC;&#x2122;re getting bigger because of bigger facilities,â&#x20AC;? Barker said.

The company does not handle downhole pumps.

Performance Pump Service also builds vapour recovery unit packages. They are used to draw gas from the top of tanks and flare it off. This has been driven by recent regulatory

changes that have put the kibosh on venting.

They carry the Flygt line of submersible pumps. This style of pumps is used in applications as diverse as pumping city water to mud tanks to coal mining.

Phillips personally worked at the local coal mines for two years.

Since the work was 7-3:30 at the mine, he would moonlight afterwards. â&#x20AC;&#x153;At 4 p.m. I loaded up my truck with tools and parts and headed into the field â&#x20AC;&#x201C; Saturdays, too,â&#x20AC;? he said.

Barker is originally from Bienfait. â&#x20AC;&#x153;I spent eight-

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and-a-half years in the military.â&#x20AC;?

Now 34, he mustered out as a corporal, in large part because he and his wife wanted to start a family. Therefore they came home to be close to family. His wife is from Estevan. â&#x20AC;&#x153;I was based out of Edmonton. I did two tours in Bosnia (2000 and 2003) and a tour in Afghanistan (2005-6).â&#x20AC;?

Most of that was in the armoured reconnaissance role, as a driver and surveillance operator in Coyotes.

However, he also served as a Leopard tank gunner and loader. When the going got tough, Canada deployed its heavy tanks to Afghanistan, and Barker was in one. â&#x20AC;&#x153;I got married right before I went to Afghanistan. â&#x20AC;&#x153;We were the first tour to Khandahar,â&#x20AC;? he said. The unit was the Lord Strathconaâ&#x20AC;&#x2122;s Horse (Royal Canadians). â&#x20AC;&#x153;Then I came and apprenticed under Kent, and he taught me my ways. â&#x20AC;&#x153;We wanted to have kids, and our parents were here.â&#x20AC;?

Barker came home in 2007, just in time to get a house before local prices skyrocketed, and

just before the Bakken play became big news. â&#x20AC;&#x153;It was an Alberta boom when I was in Edmonton. I got lucky and settled in Estevan,â&#x20AC;? he said.

Itâ&#x20AC;&#x2122;s pretty common to see Phillips at the ball diamonds. In fact, his new house is within sight of them. Heâ&#x20AC;&#x2122;s currently the president of Estevan Minor Baseball. â&#x20AC;&#x153;Iâ&#x20AC;&#x2122;ve been involved for 15 seasons and president for four. We start winter ball in the gym in February and go until July.â&#x20AC;?

Phillips was born and raised on a dairy farm eight miles west of Estevan. â&#x20AC;&#x153;Since I was 17, I started in 1987 in the oilfield,â&#x20AC;? he said.

He started in the machine shop of a local pump company, but they already had three apprentice machinists, so Phillips switched to industrial mechanics.

Both he and Barker have their journeyperson papers as industrial mechanics.

Indeed, the company has five journeypersons with that certification and three apprentices. Two others donâ&#x20AC;&#x2122;t have their papers, but have over 20 years of experience each.

The company has 10 people on staff, and since growth is in the plans, they are working on their Certificate of Recognition (COR) after working under a

Small Employer Certificate of Recognition (SECOR). SECOR only covers companies with 10 or fewer workers.

They have a contracted safety coordinator â&#x20AC;&#x153;who does an awesome job,â&#x20AC;? Phillips said. â&#x20AC;&#x153;We didnâ&#x20AC;&#x2122;t expect to be up to 10 people, but it kind of happened.â&#x20AC;?

When qualified people came looking for work, especially in a tight labour market, itâ&#x20AC;&#x2122;s hard to turn them down.

As a result, expansion has been the subject of most of their recent discussions, according to Barker. â&#x20AC;&#x153;The facility weâ&#x20AC;&#x2122;re in, weâ&#x20AC;&#x2122;re at the maximum for the people we have.â&#x20AC;?

When the staff is in from the field, the shop is full. As a result, they need a larger building.

As for when, Phillips said, â&#x20AC;&#x153;Sooner than later.â&#x20AC;?

Asked where they hope to be a year from now, he said, â&#x20AC;&#x153;I would like another half-dozen employees. Thereâ&#x20AC;&#x2122;s different parts of our business weâ&#x20AC;&#x2122;d like to expand on.â&#x20AC;?

Different service and product lines are on the horizon. â&#x20AC;&#x153;We can package anything substantial in size,â&#x20AC;? Phillips said. â&#x20AC;&#x153;We want to keep our service side, plus do the packaging, but service will always be No. 1.â&#x20AC;?

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5HSDLU DQG PDLQWHQDQFH D KLJKHU SURSRUWLRQ RI WKH ZRUN QRZ IRU 4XLQQ SXPSV Estevan â&#x20AC;&#x201C; In recent years Quinn Pumps Canada has gone through a few changes. The once privately held company, formed in 1965, was sold to Lufkin Industries in January 2011. Then this past summer, Lufkin itself was sold to the mammoth multinational General Electric, one of the largest companies in the world.

So has this changed much for the Quinn Pumps location in Estevan?

Yes and no. They are able to work with other product lines to offer package deals, but they still focus primarily on downhole pumps. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re just in the integration process of G.E.,â&#x20AC;? said Estevan branch manager Brian Fleury, noting the company is the third-largest in North America.

The Estevan branch is one of 48 Quinn locations.

When Quinn was acquired by Lufkin, it opened doors to more resources, including package deals with pumpjacks. Lufkin jacks have long been a mainstay of the oilpatch. â&#x20AC;&#x153;Thatâ&#x20AC;&#x2122;s what we do, and thatâ&#x20AC;&#x2122;s what weâ&#x20AC;&#x2122;re good at,â&#x20AC;? Fleury said of their pump expertise. â&#x20AC;&#x153;We have the resources to offer clients packages with jacks, variable frequency drives. We have a PC pump and drive head division under the Grenco name. â&#x20AC;&#x153;As Quinn Pumps, we had purchased Grenco prior to the Lufkin deal.â&#x20AC;?

Lufkin had also purchased Pentagon Optimization, he noted.

Thereâ&#x20AC;&#x2122;s a Lufkin shop just down the street from the Quinn location, with three hands. One is an optimization specialist focusing on VFDs. They also handle sales, maintenance and repairs of pumpjacks.

As for downhole rod pumps themselves, the type Quinn specializes in, not a lot has changed in recent years. Fleury noted, â&#x20AC;&#x153;A pump is a pump is a pump. They all have to adhere to API specifications.â&#x20AC;?

Those specs include threads, materials, and the like. â&#x20AC;&#x153;A pumpâ&#x20AC;&#x2122;s been around so long, nothing changes. â&#x20AC;&#x153;The difference is service, personnel and pricing. We manufacture our own product â&#x20AC;&#x201C; all Canadian-made, API and ISO accredited. We cut out the middleman,â&#x20AC;? he said.

Quinn has a brand new manufacturing facility in Red Deer, Alta.

The Estevan location usually runs with seven staff members. But hiring is often complicated by the long-standing housing shortage in the community. A sales position, held by Nicole Gordon, was recently created. â&#x20AC;&#x153;Oh yes, Iâ&#x20AC;&#x2122;ve had a few people from other provinces and they had to go back,â&#x20AC;? Fleury said.

Housing and the cost of living were the factors, he explained, especially the â&#x20AC;&#x153;definite lack of rental properties.â&#x20AC;?

Like almost every company Pipeline News has spoken to in southeast Saskatchewan this past month, Quinn has seen the activity level in the re-

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gion slow down. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s definitely a downturn,â&#x20AC;? he said, but added that repair and maintenance are still going on.

In some cases, a company might downsize a pump from a two-inch to a 1.5-inch due to reduce well output. â&#x20AC;&#x153;New drills, new wells are a big part of the business. With less drilling, youâ&#x20AC;&#x2122;ve got less business. Itâ&#x20AC;&#x2122;s affected everyone in this area,â&#x20AC;? Fleury said.

Some of the larger Bakken oil companies have started moving to waterflood programs in older areas. This means existing equipment may be redeployed elsewhere. It can also mean less new pumps, but more repair and maintenance.

Locally, about 70 per cent of the pump business is now repair and maintenance, Fleury said, as opposed to a 50/50 split in 2008.

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Estevan â&#x20AC;&#x201C; It turns out fixing pumps was a better fit for Brogan Drysdale than fixing teeth. Now the dental assistant is working at Quinn Pumps in Estevan. â&#x20AC;&#x153;My dad has worked in the oilfield my whole life.

I got that from him,â&#x20AC;? she said between disassembling pumps.

Her father contracts with a local operation that runs frac tools, while her mother works in the office for Enbridge. As such, a job in the patch wasnâ&#x20AC;&#x2122;t too far of a stretch.

Born and raised in Estevan, Drysdale attended the Estevan Comprehensive School before taking her dental assistant course at SIAST. She spent a year working at Guardian before going to school to be a dental assistant, working as a waitress to fill the gap. â&#x20AC;&#x153;I decided it wasnâ&#x20AC;&#x2122;t for me,â&#x20AC;? she said of being a dental assistant. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s fun to be a girl and work in a manâ&#x20AC;&#x2122;s world and do what they do. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s easy going. If you have a problem one day, the next day, itâ&#x20AC;&#x2122;s gone.â&#x20AC;?

Drysdale wanted an inside oilfield job that kept her physically active. â&#x20AC;&#x153;Around Estevan, thatâ&#x20AC;&#x2122;s pretty much what you have to do to make money,â&#x20AC;? she said.

Compared to non-oilpatch jobs, she said the pay is really good, and thereâ&#x20AC;&#x2122;s lots of overtime. The job includes dropping off and picking up pumps while on call. â&#x20AC;&#x153;We go to Waskada. Iâ&#x20AC;&#x2122;ve been out to Gladmar.â&#x20AC;?

Working as a pump technician, she said, â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s very repetitive. Youâ&#x20AC;&#x2122;re doing the same thing over and over, but youâ&#x20AC;&#x2122;re learning how it works, i.e. you can look at a pump and say, â&#x20AC;&#x2DC;Oh, itâ&#x20AC;&#x2122;s scored because of this.â&#x20AC;&#x2122;â&#x20AC;?

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$[LRP ([SORUDWLRQ WDNHV D GLIIHUHQW WDFN LQ JHRORJ\ Estevan â&#x20AC;&#x201C; Dealing with rocks hundreds of millions of years old, a new company is doing its best to stay current with the latest in the geology field, and perhaps do things a little differently along the way.

Axiom Exploration is a new geology firm based out of Saskatoon. There are three principals behind Axiom â&#x20AC;&#x201C; president Scott Newman, vice-president of exploration Kurt Soparlo and field manager Jason Lasby. All are geologists who are expected to receive their professional geologist designations by the end of the year with the Association of Professional Engineers and Geoscientists of Saskatchewan (APEGS).

Newman and Soparlo met with Pipeline News in Estevan while on break from drilling in the Goodwater area. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re geological supervision on drilling rigs.

When companies set up the site, weâ&#x20AC;&#x2122;re on site from the first 20 metres onwards,â&#x20AC;? said Newman.

On-site geologists are key players during the drilling of a well, doing regular periodic analysis of drill cuttings to determine formation tops and to ensure the directional drilling program stays on target. The geologist will provide cues to the directional drillers to make sure the well stays within the zone, a crucial point since some target formations are only a metre or two thick, and 1,700 metres or more deep. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re usually out there almost right at surface, collecting samples, picking formation tops, and adjusting our target to land,â&#x20AC;? said Soparlo.

Newman noted that of the partners, Lasby is the veteran on the team. From Melfort, Lasby does a lot of work in the Viking formation in the Kindersley area. These are typically quick wells, with

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1,400 metre long horizontals and a formation depth of just 700 metres.

Core lab If you want to truly understand Saskatchewanâ&#x20AC;&#x2122;s geology, you need to spend time at the Saskatchewan Sub-surface Geological Laboratory, also known as the Core Lab. Itâ&#x20AC;&#x2122;s the central repository for all the core cut in the province, drill cuttings from its wells and well logs. From careful analysis of nearby wells, geologists gain insights into what they may encoun-

ter on a new well. â&#x20AC;&#x153;Our geologists are in the Core Lab every week,â&#x20AC;? said Soparlo. â&#x20AC;&#x153;We have gamma logs that tell us what should be where. We go to the Core Lab to see exactly what should be where, and the quality of the reservoir.â&#x20AC;?

Newman added, â&#x20AC;&#x153;Some companies donâ&#x20AC;&#x2122;t do that.

Weâ&#x20AC;&#x2122;re using all the tools in the tool box to see best what we have under the surface.â&#x20AC;?

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First hospital helipad in Saskatchewan On Sept. 20, Estevan's St. Joseph's Hospital inaugurated its Ĺ&#x161;Ä&#x17E;ĹŻĹ?Ć&#x2030;Ä&#x201A;Ä&#x161;Í&#x2022; Ć&#x161;Ĺ&#x161;Ä&#x17E; ÄŽ Ć&#x152;Ć?Ć&#x161; ŽĨ Ĺ?Ć&#x161;Ć? ĹŹĹ?ĹśÄ&#x161; Ĺ?Ĺś ^Ä&#x201A;Ć?ĹŹÄ&#x201A;Ć&#x161;Ä?Ĺ&#x161;Ä&#x17E;Ç Ä&#x201A;Ĺś ĨŽĆ&#x152; Ĺ&#x161;Ä&#x17E;ĹŻĹ?Ä?Ĺ˝Ć&#x2030;Ć&#x161;Ä&#x17E;Ć&#x152; Ä&#x201A;Ĺ?Ć&#x152; Ä&#x201A;ĹľÄ?ƾůÄ&#x201A;ĹśÄ?Ä&#x17E; ĆľĆ?Ä&#x201A;Ĺ?Ä&#x17E;Í&#x2DC; dĹ&#x161;Ä&#x17E; ĹśÄ&#x17E;Ć&#x152;Ĺ?Ç&#x2021; Ĺ?Ć&#x161;Ç&#x2021; Ä?Ä&#x17E;Ä&#x201A;Ć&#x161; ŽƾĆ&#x161; Ä?Ĺ˝Ć&#x161;Ĺ&#x161; ZÄ&#x17E;Ĺ?Ĺ?ĹśÄ&#x201A; Ä&#x201A;ĹśÄ&#x161; ^Ä&#x201A;Ć?ĹŹÄ&#x201A;Ć&#x161;ŽŽŜ Ĺ?Ĺś Ĺ?Ä&#x17E;ĆŤ ĹśĹ? Ĺ?Ć&#x161;Ć? Ä&#x161;Ä&#x17E;Ä&#x161;Ĺ?Ä?Ä&#x201A;Ć&#x161;Ä&#x17E;Ä&#x161; Ĺ&#x161;Ä&#x17E;ĹŻĹ?Ć&#x2030;Ä&#x201A;Ä&#x161;Í&#x2DC; EƾžÄ&#x17E;Ć&#x152;ŽƾĆ? ĹŻĹ˝Ä?Ä&#x201A;ĹŻ Ä&#x161;Ĺ?Ĺ?ĹśĹ?Ć&#x161;Ä&#x201A;Ć&#x152;Ĺ?Ä&#x17E;Ć? Ä&#x201A;ĹśÄ&#x161; ^d Z^ Žĸ Ä?Ĺ?Ä&#x201A;ĹŻĆ? Ć&#x161;ŽŽŏ Ć&#x2030;Ä&#x201A;Ć&#x152;Ć&#x161; Ĺ?Ĺś Ć&#x161;Ĺ&#x161;Ä&#x17E; Ä&#x17E;Ç&#x20AC;Ä&#x17E;ĹśĆ&#x161;Í&#x2DC; Photo by Michelle Zinchuk

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â&#x20AC;&#x153;Pretty much all of the work in the vertical is used to determine where we want to land in the horizontal.

Some formations are eight metres thick. Weâ&#x20AC;&#x2122;re targeting one metre thick (formations). We have to be really precise. Often it is only 90 centimetres thicker than the drill bit.â&#x20AC;?

U of S All three principals are products of the University of Saskatchewan. Prior to completing his degree in geology, Lasby had many years of field experience. â&#x20AC;&#x153;Jason was a driller for several years before he went to school,â&#x20AC;? Newman said.

Soparlo added, â&#x20AC;&#x153;He understands a lot of things most geologists donâ&#x20AC;&#x2122;t. â&#x20AC;&#x153;We train a lot of geologists. To have Jason explain what is going on downhole from a drillerâ&#x20AC;&#x2122;s perspective is invaluable.â&#x20AC;?

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Kurt Soparlo, standing, and ^Ä?ŽƊ EÄ&#x17E;Ç ĹľÄ&#x201A;Ĺś Ä&#x201A;Ć&#x152;Ä&#x17E; Ć&#x161;Ç Ĺ˝ ŽĨ Ć&#x161;Ĺ&#x161;Ć&#x152;Ä&#x17E;Ä&#x17E; Ć&#x2030;Ć&#x152;Ĺ?ĹśÄ?Ĺ?Ć&#x2030;Ä&#x201A;ĹŻĆ? Ä?Ä&#x17E;Ĺ&#x161;Ĺ?ĹśÄ&#x161; Ç&#x2020;Ĺ?Žž Ç&#x2020;Ć&#x2030;ĹŻĹ˝Ć&#x152;Ä&#x201A;Ć&#x;ŽŜÍ&#x2DC; dĹ&#x161;Ä&#x17E; Ć&#x161;Ĺ&#x161;Ĺ?Ć&#x152;Ä&#x161; Ĺ?Ć? :Ä&#x201A;Ć?ŽŜ >Ä&#x201A;Ć?Ä?Ç&#x2021;Í&#x2022; Ä&#x201A; ĨŽĆ&#x152;ĹľÄ&#x17E;Ć&#x152; Ä&#x161;Ć&#x152;Ĺ?ĹŻĹŻÄ&#x17E;Ć&#x152;ͲĆ&#x161;ĆľĆ&#x152;ĹśÄ&#x17E;Ä&#x161;ͲĹ?Ä&#x17E;ŽůŽĹ?Ĺ?Ć?Ć&#x161;Í&#x2DC; ,Ä&#x17E;Ć&#x152;Ä&#x17E; ^Ĺ˝Ć&#x2030;Ä&#x201A;Ć&#x152;ĹŻĹ˝ Ä&#x201A;ĹśÄ&#x161; EÄ&#x17E;Ç ĹľÄ&#x201A;Ĺś Ä&#x161;Ĺ?Ć?Ä?ĆľĆ?Ć? Ć&#x161;Ĺ&#x161;Ä&#x17E; Ä&#x161;Ä&#x201A;Ç&#x2021;Í&#x203A;Ć? Ç Ĺ˝Ć&#x152;ĹŹ Ä&#x161;ĆľĆ&#x152;Ĺ?ĹśĹ? Ä&#x201A; Ć?Ĺ&#x161;Ĺ?Ĺ&#x152; Ä?Ĺ&#x161;Ä&#x201A;ĹśĹ?Ä&#x17E;Ĺ˝Ç&#x20AC;Ä&#x17E;Ć&#x152; ŽŜ Ä&#x201A; Ç Ä&#x17E;ĹŻĹŻĆ?Ĺ?Ć&#x161;Ä&#x17E; Ć?ŽƾĆ&#x161;Ĺ&#x161; ŽĨ tÄ&#x17E;Ç&#x2021;Ä?ĆľĆ&#x152;ĹśÍ&#x2DC; Photo by Brian Zinchuk

W Page B18 Soparlo was born and raised in Saskatoon.

Newman grew up in Prince Albert. Both were hockey players, with Newman having played defence at the Midget AA level and Soparlo having played centre with Weyburn and La Ronge in the Saskatchewan Junior Hockey League.

When the two change off shifts on a lease, Newman is typically eager to get into town and hit a gym.

Start-up â&#x20AC;&#x153;When we first started this, we started with a big, white board.

We see what happens every day in the industry. We wanted to capitalize on what a little extra professionalism and due diligence can do,â&#x20AC;? Newman said. â&#x20AC;&#x153;Our big thing was the phase shift of not seeing what we can get from the oil companies (but rather) what we can do for the oil companies. â&#x20AC;&#x153;We donâ&#x20AC;&#x2122;t want to be known as the company that just struck when the iron is hot.â&#x20AC;?

Soparlo said, â&#x20AC;&#x153;We devolved Axiom because we want to represent the quality of work we set for ourselves. â&#x20AC;&#x153;We want to be the new generation. Weâ&#x20AC;&#x2122;re not trying to re-invent the wheel.â&#x20AC;?

The company was founded in the fall of 2012. Soparlo and Newman were working the same shift, when a discussion at the gym led to them pulling the trigger on their own company. â&#x20AC;&#x153;Why do we keep talking about it and why donâ&#x20AC;&#x2122;t we do it?â&#x20AC;?

Soparlo recalled.

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â&#x20AC;&#x153;Either we do it or we donâ&#x20AC;&#x2122;t. Letâ&#x20AC;&#x2122;s do it proper, and the next day, Axiom was formed.â&#x20AC;?

Head office is in Saskatoon. There are four full-time staff including the three owners, but they will contract as many as six other geologists as needed. Each drilling rig typically operates with two geologists, one working days, the other nights. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s really hard to find good geologists that are trained the way you will like. We take a lot of personal pride in our product, commitment and attention to detail,â&#x20AC;? Newman said. â&#x20AC;&#x153;It wasnâ&#x20AC;&#x2122;t a linear path... getting to where we are required an unbroken focus,â&#x20AC;? Newman said.

Soparlo said, â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;ve had a lot of help from amazing mentors in geology and business.

We wouldnâ&#x20AC;&#x2122;t be here without them. â&#x20AC;&#x153;For instance, one mentor we had had this motto: â&#x20AC;&#x2DC;Thereâ&#x20AC;&#x2122;s no such thing as good enough.â&#x20AC;&#x2122; Be proud of what you put your name on in this industry. Thatâ&#x20AC;&#x2122;s all you have.â&#x20AC;? â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re only as good as our name. We can only keep working if you keep that,â&#x20AC;? Newman said. â&#x20AC;&#x153;Like hockey, youâ&#x20AC;&#x2122;re only as good as your last shift. Our motto is â&#x20AC;&#x2DC;Youâ&#x20AC;&#x2122;re only as good as

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Future In the future, Newman said Axiom will be doing underbalanced drilling, working with injectors and producer wells. â&#x20AC;&#x153;We want to direct industry rather than react to change,â&#x20AC;?

Newman said.

Eager to learn, they are constantly taking courses on new technology, as opposed to simply getting out of school, getting in the truck and learning on the go.

To that end, the company is investigating working with the University of Saskatchewan on developing a co-op program for geology students.

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STARS recognizes Crescent Point contribution Â&#x201E; By Brian Zinchuk Weyburn â&#x20AC;&#x201C; Grades 5 and 6 students from five Weyburn schools got a thrill on Sept. 20 when they were able to see the STARS helicopter air ambulance touch down at Weyburn Airport, then crawl all over it for a close-up view.

The helicopter was brought in as part of STARS contributor recognition program. Crescent Point Energy Corp. got the ball rolling in Saskatchewan with a four year, $5 million donation. Since the companyâ&#x20AC;&#x2122;s main field office in southeast Saskatchewan is situated in Weyburn, thatâ&#x20AC;&#x2122;s where the helicopter was brought in for a visit.

Todd Bedore, who works in the Weyburn field office in the supply chain area, acted as master of ceremonies.

He said, â&#x20AC;&#x153;Crescent Point planted the seed money which helped grow the STARS program. Thatâ&#x20AC;&#x2122;s because we want Saskatchewan to have the best medical care possible and STARS is an important lifeline for our employees, our families, and everyone in this province. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re pretty excited that we were able to bring STARS to Weyburn today and give you all the opportunity to see the bright red helicopter and meet the amazing, life-saving flight crew.â&#x20AC;?

Flight paramedic Tara Oliver said, â&#x20AC;&#x153;On every mission we fly at STARS, we have two pilots, a flight nurse and an advanced care paramedic like myself. Weâ&#x20AC;&#x2122;re really pleased to be in Saskatchewan now. STARS is a nonprofit organization and we donâ&#x20AC;&#x2122;t charge for our service.

Thatâ&#x20AC;&#x2122;s why we raise money, so we can fly. Weâ&#x20AC;&#x2122;re really grateful to have corporations like Crescent Point Energy who saw the value in helicopter air ambulance service and donated $5 million. You are so fortunate to have a company like Crescent Point right here in your community.â&#x20AC;?

She noted that over 100 patients had been transported from this region alone.

Minister of Health and MLA for Weyburn-Big Muddy Dustin Duncan also spoke briefly. â&#x20AC;?The government of Saskatchewan is a proud partner of STARS. We provide $10.5 million a year, but we canâ&#x20AC;&#x2122;t do it alone,â&#x20AC;? he said, noting â&#x20AC;&#x153;great organizations like Crescent Point,â&#x20AC;? who donated, as well as lottery contributions.

He spoke of how, while touring the hangar in Regina, the alarm went off. â&#x20AC;&#x153;Eight minutes and 20 seconds later, they were in the air. It was overwhelming to see them in action.â&#x20AC;?

Above: Children from several Weyburn schools, seen in the background, watch as the STARS helicopter air Ä&#x201A;ĹľÄ?ƾůÄ&#x201A;ĹśÄ?Ä&#x17E; ĹŻÄ&#x201A;ĹśÄ&#x161;Ć?Í&#x2DC; tÄ&#x17E;Ç&#x2021;Ä?ĆľĆ&#x152;Ĺś ÄŽĆ&#x152;Ä&#x17E;ÄŽĹ?Ĺ&#x161;Ć&#x161;Ä&#x17E;Ć&#x152;Í&#x2022; ĹŻÄ&#x17E;Ĺ&#x152;Í&#x2022; Ĺ?ĆľĹ?Ä&#x161;Ä&#x17E;Ä&#x161; Ĺ?Ć&#x161;Ć? landing. Photo by Brian Zinchuk

Dozens of kids ape for the camera with a STARS pilot.

Itâ&#x20AC;&#x2122;s not every day these kids get to check out the inside of a helicopter, and it showed on their faces.

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Stampede Drilling okays third rig Stampede Drilling will be using the same design for its third rig as it Ä&#x161;Ĺ?Ä&#x161; ĨŽĆ&#x152; Ĺ?Ć&#x161;Ć? ÄŽĆ&#x152;Ć?Ć&#x161; Ä&#x201A;ĹśÄ&#x161; second rigs.

Â&#x201E; By Brian Zinchuk Estevan â&#x20AC;&#x201C; Just before Thanksgiving, the smile on Bill Devinâ&#x20AC;&#x2122;s face was infectious, and for good reason.

Stampede Drilling, the Estevan company he heads up, just decided to go ahead with its third drilling rig.

Devins was almost giddy in making the announcement. The company initially sent its first rig to work in late 2012. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re building Rig 3, making the final arrangements,â&#x20AC;? he said, sitting down with Pipeline News at Stampedeâ&#x20AC;&#x2122;s

headquarters on the east side of Estevan. Jackie White, who spearheads the safety side of the company and is also on the board of directors, joined in. â&#x20AC;&#x153;We donâ&#x20AC;&#x2122;t use titles,â&#x20AC;? Devins said.

So why is the company adding a third rig? â&#x20AC;&#x153;Demand. Weâ&#x20AC;&#x2122;re getting lots of good responses for good people,â&#x20AC;? Devins said. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;ve been getting calls for when a rig is available.â&#x20AC;?

Two years ago, experienced rig hands were in extremely short supply. But with roughly 30 fewer rigs working

this past summer and fall compared to 2011, there are more people out there to hire, and good ones, too.

Stampede didnâ&#x20AC;&#x2122;t have too many problems attracting people, though. White said, â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;ve always had a large pool. We know our guys.â&#x20AC;?

Currently Stampede Drilling runs with four crews per rig, including a swing crew. â&#x20AC;&#x153;We run eight-hour shifts,â&#x20AC;? White said. â&#x20AC;&#x153;It is important, and it is about family.â&#x20AC;?

She pointed to a recently posted photo in the reception area of the office showing a newborn baby in a Stampede Drilling onesie. â&#x20AC;&#x153;All Stampede babies get a onesie. This is about family. We all know where we came from.â&#x20AC;?

Devinsâ&#x20AC;&#x2122; cellphone rang. When he returned, the smile, already big, was now ear-to-ear. â&#x20AC;&#x153;That was a nice phone call. Weâ&#x20AC;&#x2122;ll keep a slot for him for Rig 3,â&#x20AC;? he said.

On the other end of the line was a driller, with his own crew.

A good crew, Devins pointed out. â&#x20AC;&#x153;It means weâ&#x20AC;&#x2122;re doing something really right with the guys weâ&#x20AC;&#x2122;ve got,â&#x20AC;? he said,

adding the driller on the phone was intelligent and respected.

A new rig means

21 new jobs, but thatâ&#x20AC;&#x2122;s not how Devins puts it.

He said, â&#x20AC;&#x153;Another 21 families will benefit.â&#x20AC;?

The company is also adding an additional office person. ɸ Page B24

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Not just 21 jobs created, but rather 21 families supported Éş Page B23 More of a good thing At the time, Stampede had not yet determined exactly where it would be built, but they noted that it was going to be very, very much alike their previous two rigs, and for good reason. That design has worked well for them, and they want fleet commonality.

Itâ&#x20AC;&#x2122;s a business model made famous by Southwest Airlines, the most consistently profitable airline in the world. While other airlines typically fly multiple Ĺ?ĹŻĹŻ Ä&#x17E;Ç&#x20AC;Ĺ?ĹśĆ?Í&#x2022; ĹŻÄ&#x17E;Ĺ&#x152;Í&#x2022; Ä&#x201A;ĹśÄ&#x161; :Ä&#x201A;Ä?ĹŹĹ?Ä&#x17E; tĹ&#x161;Ĺ?Ć&#x161;Ä&#x17E; ŽĨ ^Ć&#x161;Ä&#x201A;ĹľĆ&#x2030;Ä&#x17E;Ä&#x161;Ä&#x17E; Ć&#x152;Ĺ?ĹŻĹŻĹ?ĹśĹ?Í&#x2022; Ć?Ĺ?Ć&#x161; types of aircraft, it means they needs multiple skill Ĺ?Ĺś Ć&#x161;Ĺ&#x161;Ä&#x17E; Ä?ŽŜĆ&#x161;Ć&#x152;Žů Ä?Ä&#x17E;ĹśĆ&#x161;Ć&#x152;Ä&#x17E; ŽĨ Ć&#x161;Ĺ&#x161;Ä&#x17E; Ä?ŽžĆ&#x2030;Ä&#x201A;ĹśÇ&#x2021;Í&#x203A;Ć? Ĺ&#x161;Ä&#x17E;Ä&#x201A;Ä&#x161;Ć&#x2039;ĆľÄ&#x201A;Ć&#x152;Ć&#x161;Ä&#x17E;Ć&#x152;Ć? ŽŜ sets for pilots and maintenance staff, as well as mulĆ&#x161;Ĺ&#x161;Ä&#x17E; Ä&#x17E;Ä&#x201A;Ć?Ć&#x161; Ć?Ĺ?Ä&#x161;Ä&#x17E; ŽĨ Ć?Ć&#x161;Ä&#x17E;Ç&#x20AC;Ä&#x201A;ĹśÍ&#x2DC; Photo by Brian Zinchuk tiple sets of spare parts.

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When this philosophy, keeping everything the same, is applied to drilling rigs, it means a rig hand from Rig 1 can go to work on Rig 3 without familiarity issues. It also improves safety considerations. â&#x20AC;&#x153;That philosophy was developed sitting with Tom Wigget, Sr. He helped with the equipment philosophy and strategy. Heâ&#x20AC;&#x2122;s been around the industry for 50 or 60 years. Heâ&#x20AC;&#x2122;s a friend. We heard, and weâ&#x20AC;&#x2122;re going to listen,â&#x20AC;? Devins said.

Therefore Stampede is looking at identically specâ&#x20AC;&#x2122;d telescopic double rigs, with the same engines and drives. The design is by Hodgson Design. It has a 440,000-pound rating for the hook load. There will be two F-1000 pumps mated with Rouse Industries one speed clutches. There will be Caterpillar engines all the way around, including a Cat transmission.

Indeed, the initial Stampede rigs were the first implementation of a Cat transmission on a drilling rig application of its type. That occurred as a result of a collaboration between Weyburn-based Rouse Industries and Caterpillar. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re pleased. Weâ&#x20AC;&#x2122;re not deviating from it, thatâ&#x20AC;&#x2122;s for sure,â&#x20AC;? Devins said.

Mustang Controlsâ&#x20AC;&#x2122; pump alert system and control system will also be used on the new unit.

The winter drilling season is just getting going, but Stampede is not going to rush to get its third rig out of the gate in time to catch the last few weeks of drilling. â&#x20AC;&#x153;To get the quality we require, weâ&#x20AC;&#x2122;re shooting for after road ban,â&#x20AC;? he said. â&#x20AC;&#x153;We want to take our time and ensure for our customers it is exactly what we told them. â&#x20AC;&#x153; Stampede moved into its own, newly constructed shop south of Kramer Caterpillar last January.

This provides them with the space to do the rig-up on their yard.

Assembly will also provide work for their hands during the slow road ban season. White will also have time to train all the new hands to the companyâ&#x20AC;&#x2122;s standards.

The company has backed a local minor hockey team and donated to daycares in both Estevan and Carnduff. â&#x20AC;&#x153;Anything to do with kids,â&#x20AC;? Devins said. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re trying to contribute to the community, not just through jobs, but through donations and contributing our time as well.â&#x20AC;?

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No rod or tubing wear when ESPs are used salesperson, one tech, and one driver. Now they have a sales account manager; two techs, one of whom oversees operations; three truck operators and an admin person. Theyâ&#x20AC;&#x2122;ve also expanded within the facility, taking over all the 7,200 square-feet as well as the upstairs offices. The yard has also been expanded 100 feet, and there are now two Ĺ&#x161;Ć&#x152;Ĺ?Ć? /Ć?Ć&#x161;Ä&#x201A;Ä?Ä&#x17E; Ĺ?Ć? Ä&#x201A;Ä?Ć&#x;ĹśĹ? Ć?Ä&#x201A;ĹŻÄ&#x17E;Ć? spool trucks and three Ä&#x201A;Ä?Ä?ŽƾŜĆ&#x161; ĹľÄ&#x201A;ĹśÄ&#x201A;Ĺ?Ä&#x17E;Ć&#x152; ŽĨ Ä&#x201A;ĹśÄ&#x201A;- full service trucks. Ä&#x161;Ĺ?Ä&#x201A;Ĺś Ä&#x161;Ç&#x20AC;Ä&#x201A;ĹśÄ?Ä&#x17E;Ä&#x161; ^WÍ&#x2DC; Canadian Advanced File photo ESP specializes in electric submersible pumps Estevan â&#x20AC;&#x201C; Over the (ESP) used in downhole last four years, Canadian Advanced ESP has applications and horizontal pumping systems grown substantially at (HPS) used in surface its Estevan location. work.

It was the first A unique feature in satellite operation for Estevan was the instalthe Edmonton-based company specializing in lation of a test bench intended for testing electric pumps. â&#x20AC;&#x153;Now not only for their own weâ&#x20AC;&#x2122;re using it as a temproducts, but also thirdplate internationally,â&#x20AC;? said Chris Istace, acting party units. Both ESP and HPS systems can be sales account manager pressured up and tested in Estevan.

In the Middle East, on the test bench. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re still the only the company is looking one with a regional test at several Gulf States facility of equipment,â&#x20AC;? for potential expansion.

Already there are similar Istace said.

They have tested facilities in Germany. units for other compaHowever, instead of oil nies, but he noted not and gas, their primary many of their own have work in Germany is come back for maintesupporting geothermal nance. applications.

He said of their perWhen the company formance, â&#x20AC;&#x153;Our goal for fired up its Estevan shop this region is three to in 2009, there was one

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either up and down in the case of sucker rod pumps â&#x20AC;&#x201C; or rotationally

with progressing cavity pumps. That in turn causes wear for both

the rods themselves and the production tubing it travels in. ɸ Page B27

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five years for downhole.

HPS pumps typically go five to 10 years before major servicing.â&#x20AC;?

Electric submersible pumps are substantially different from the much more common sucker rod pump in light oil or the progressing cavity pump that is widely used in heavy oil applications, but also in higher volume light oil wells. Sucker rod pumps have substantial drive mechanisms above ground, namely the pumpjack. PC pumps have the electric drive motor above ground as well. Both transmit their power through rod strings that are typically well over a kilometre in length.

That rod string is in constant action â&#x20AC;&#x201C;

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:DWHUĂ RRGLQJ PHDQV RSSRUWXQLWLHV Éş Page B25 Every connection is a potential wear point, but even continuous rod (corod) can see wear.

Sometimes the rod will break, or part, requiring fishing operations to retrieve it.

None of these are the case with ESP systems. All the moving parts are downhole, within the pump itself, thus tubing wear is not an issue and there are no rods to speak of. What is present is essentially a very stout extension cord â&#x20AC;&#x201C; an electrical wire running to the variable frequency drive (VFD) on the surface.

This is of particular consideration when considering the long term operating costs of the well. A deviated well results in wear points for both the tubing and the rods. â&#x20AC;&#x153;We have no moving parts. You donâ&#x20AC;&#x2122;t have rods spinning, or a jack going down, producing torque on rods due to deviations and doglegs,â&#x20AC;?

Istace said.

The computercontrolled VFD allows for optimization, looking at consistent continuous run time with the pump running at the most efficient rate and achieving the maximum drawdown of the well. â&#x20AC;&#x153;The operating

range is huge,â&#x20AC;? Istace said. Essentially the pump can be sped up or slowed down as needed. â&#x20AC;&#x153;Everyone thinks ESPs are high volume lift applications. Weâ&#x20AC;&#x2122;re getting better production down to 30 cubes (cubic metres) per day.

ESPs are also more expensive than a sucker rod pump. But Istace noted, â&#x20AC;&#x153;Our prices have come down compared to what they were.â&#x20AC;?

Part of the calculation is also in the longterm service requirements on that well. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re a service company, helping the producer optimize it and keep it running,â&#x20AC;? he said. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re on the production side. Existing wells all need to be optimized, and need to be kept running.

HPS As for horizontal pumping systems, they are seen often in facility upgrades. â&#x20AC;&#x153;We are doing a lot of HPS. Itâ&#x20AC;&#x2122;s a waterflood injection pump. Our goal is to get rid of the triplexes and positive displacement pumps, getting rid of the pulses.â&#x20AC;?

Those pumps use a piston action, similar to a motor of a car. An HPS is a continual action. â&#x20AC;&#x153;Ours is continual volume and pressure.

Theyâ&#x20AC;&#x2122;re quieter on the

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surface, extremely clean and have zero daily maintenance requirements.â&#x20AC;?

A number of prominent oil producers in southeast Saskatchewan are moving towards waterflood programs in the Bakken as a way to extend the lives of those wells. Bakken wells are well known to have a high decline rate.

Istace side, â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s a market opportunity as they increase their waterflood strategy.â&#x20AC;?

This includes using ESP systems in source water wells. In essence, such systems can handle water both coming and going â&#x20AC;&#x201C; producing source water with an ESP and then injecting it with an HPS. â&#x20AC;&#x153;The region has supported us. We pride ourselves on being a local facility supporting the local area,â&#x20AC;? Istace

said. â&#x20AC;&#x153;Our belief is the lasting impression in the field is the thing.â&#x20AC;?

He touched on service, education and support as being key. â&#x20AC;&#x153;We donâ&#x20AC;&#x2122;t take that lightly,â&#x20AC;? Istace said, adding accountability is important.

Canadian Advanced ESP has a test bench in Estevan for Ć&#x161;Ä&#x17E;Ć?Ć&#x;ĹśĹ? Ä?Ĺ˝Ć&#x161;Ĺ&#x161; Ä&#x17E;ĹŻÄ&#x17E;Ä?Ć&#x161;Ć&#x152;Ĺ?Ä? Ć?ĆľÄ?ĹľÄ&#x17E;Ć&#x152;Ć?Ĺ?Ä?ĹŻÄ&#x17E; Ć&#x2030;ƾžĆ&#x2030;Ć? Ä&#x201A;ĹśÄ&#x161; Ĺ&#x161;Ĺ˝Ć&#x152;Ĺ?Ç&#x152;ŽŜĆ&#x161;Ä&#x201A;ĹŻ Ć&#x2030;ƾžĆ&#x2030;Ĺ?ĹśĹ? Ć?Ç&#x2021;Ć?Ć&#x161;Ä&#x17E;ĹľĆ?Í&#x2DC; WĹ&#x161;Ĺ˝Ć&#x161;Ĺ˝ Ć?ĆľÄ?ĹľĹ?ĆŠÄ&#x17E;Ä&#x161;

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Estevan â&#x20AC;&#x201C; Formerly Independent Pump Co., Weathford IPC has taken on the role of pump shop for the global firm in southeast Saskatchewan.

In April 2012, IPC was purchased by Weatherford. Independent Pump Co was owned and operated by three partners and a silent partner. The company operated five years independently before the purchase. Cary Wock, Jeremy Mack and Mike Gervais have stayed on, continuing to run operations.

Asked about the sale, Gervais said, â&#x20AC;&#x153;It was more an opportunity for employees to transfer and move up.â&#x20AC;?

Mack added, â&#x20AC;&#x153;It was a change, I guess. You have more room to grow.

Things havenâ&#x20AC;&#x2122;t changed a whole lot for Mike and I. We look after day-to-day operations.â&#x20AC;? ɸ Page B29

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same with Weatherford IPC Éş Page B28 Wock, on the other hand was the product line manager for rod pumps and sucker rod pumps for Western Canada. Thatâ&#x20AC;&#x2122;s changed recently, and now he is the regional business unit manager for Estevan, Melita and Weyburn, including all product lines. That includes wireline, fishing, and completions.

The guys take a little ribbing for now being part of a large company, but Mack said, â&#x20AC;&#x153;We havenâ&#x20AC;&#x2122;t really lost customers.â&#x20AC;?

Weatherford IPC is now fully staffed at 17 people, including administration. â&#x20AC;&#x153;Our end is pretty much the same. We can offer help through other divisions, i.e. rods or wellheads. It can be anything,â&#x20AC;? said Gervais.

One change that did occur is they now carry Weatherford pumps, a switch from their primary supplier as IPC. Weatherford opened a pump shop in Melita, Man., this past spring.

Weatherford IPC works together with that shop. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re still busy. The more wells they drill, the more service there is. You can tell itâ&#x20AC;&#x2122;s slow, though,â&#x20AC;? said Mack.

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Pump technician Chris Lesy has been with Weatherford IPC for two years.

Photo by Brian Zinchuk

Shawn King threads a valve rod in the Weatherford IPC shop.

Photo by Brian Zinchuk

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

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Sanjel holds health and safety fair in Estevan Â&#x201E; By Brian Zinchuk Estevan â&#x20AC;&#x201C; On Sept.

19, Sanjel Corporation pulled out all the stops in its Health and Safety Fair held in Estevan Leisure Centre. Several hundred attended.

Affinity Place was filled with displays from firefighters, police, safety ^Ä&#x201A;ŜŊÄ&#x17E;ĹŻ Ĺ˝Ć&#x152;Ć&#x2030;Ĺ˝Ć&#x152;Ä&#x201A;Ć&#x;ŽŜ Ć&#x2030;Ć&#x152;Ä&#x17E;Ć?Ĺ?Ä&#x161;Ä&#x17E;ĹśĆ&#x161; Ä&#x201A;ĹśÄ&#x161; K Ä&#x201A;Ć&#x152;Ĺ?Ĺś DÄ&#x201A;Ä? ŽŜÄ&#x201A;ĹŻÄ&#x161; Ć?Ć&#x161;Ć&#x152;Ä&#x17E;Ć?Ć?Ä&#x17E;Ć? Ć&#x161;Ĺ&#x161;Ä&#x17E; Ĺ?ĹľĆ&#x2030;Ĺ˝Ć&#x152;Ć&#x161;Ä&#x201A;ĹśÄ?Ä&#x17E; ŽĨ companies, ambulance Ć?Ä&#x201A;ĨÄ&#x17E;Ć&#x161;Ç&#x2021; ŜŽĆ&#x161; ŽŜůÇ&#x2021; Ä&#x201A;Ć&#x161; Ç Ĺ˝Ć&#x152;ĹŹÍ&#x2022; Ä?ĆľĆ&#x161; Ĺ?Ĺś Ć&#x161;Ĺ&#x161;Ä&#x17E; Ĺ&#x161;ŽžÄ&#x17E; Ä&#x201A;ĹśÄ&#x161; Ä?ŽžžƾŜĹ?Ć&#x161;Ç&#x2021;Í&#x2DC; /Ć&#x161; Ä?Ä&#x201A;Ĺś Ä?Ä&#x17E; Ä&#x201A;Ć? Ć?Ĺ?ĹľĆ&#x2030;ĹŻÄ&#x17E; Ä&#x201A;Ć? Ç Ä&#x17E;Ä&#x201A;Ć&#x152;Ĺ?ĹśĹ? services (oilfield and Ć?Ä&#x201A;ĨÄ&#x17E;Ć&#x161;Ç&#x2021; Ä?ŽŽĆ&#x161;Ć? Ĺ?ĹśĆ?Ć&#x161;Ä&#x17E;Ä&#x201A;Ä&#x161; ŽĨ Ĺ&#x2021;Ĺ?Ć&#x2030;Ĺ&#x2021;Ĺ˝Ć&#x2030;Ć? Ç Ĺ&#x161;Ĺ?ĹŻÄ&#x17E; Ä?ƾƍŜĹ? Ĺ?Ć&#x152;Ä&#x201A;Ć?Ć?Í&#x2022; Ĺ&#x161;Ä&#x17E; ŜŽĆ&#x161;Ä&#x17E;Ä&#x161;Í&#x2DC; ,Ä&#x17E;Ć&#x152;Ä&#x17E; Ĺ?Ć? Ĺ&#x161;Ĺ?Ć? ĹŻĹ?Ć?Ć&#x161;Ä&#x17E;ĹśĹ?ĹśĹ? Ć&#x161;Ĺ˝ health region). There ^Ć&#x2030;Ä&#x17E;ĹśÄ?Ä&#x17E;Ć&#x152; Ä&#x17E;Ä&#x201A;Ä?Ĺ&#x161;Í&#x203A;Ć? Ć&#x2030;Ć&#x152;Ä&#x17E;Ć?Ä&#x17E;ĹśĆ&#x161;Ä&#x201A;Ć&#x;ŽŜÍ&#x2DC; were bouncy castlestyle play areas for children, and plenty of food. But between the facepainting and ball throws, there were also very serious messages about safety. Attendees could speak to a nurse, have their blood pressure checked, or sit in on a heart-wrenching presentation by Spencer Beach.

Beach had endured horrific burns from a fire that occurred when he was stripping lino as a flooring worker.

Within 20 seconds he received 3rd and 4th degree burns to 90 per cent of his body. He has since recovered and become a motivational speaker. Approximately 80 people sat in on his presentation. At its

conclusion, they were offered a copy of his 306-637-3460 book, In Case Of Fire: Please Remain Calm

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Estevan deputy fire chief Dale Feser said of the event, â&#x20AC;&#x153;I think this is unbelievable. Iâ&#x20AC;&#x2122;m really happy with exhibitors and the emergency services coming out to make presentations to the general public.â&#x20AC;?

He and other firefighters explained the fire departmentâ&#x20AC;&#x2122;s hazardous materials; swiftwater, ice water and high angle rescue capabilities to passersby.

Darin MacDonald is president and CEO of the family-owned and operated company that was founded in Lloydminster 31 years ago by Darinâ&#x20AC;&#x2122;s father, Don MacDonald. Now based in Calgary, Sanjel has approximately 35 locations worldwide, operating in nine countries. At the conclusion of Beachâ&#x20AC;&#x2122;s presentation, MacDonald spoke with Pipeline News. â&#x20AC;&#x153;We really want to engage the community, tell the Sanjel story, as well as include the

Sanjel family in our commitment to safety,â&#x20AC;? he said. â&#x20AC;&#x153;Sanjel is here to engage the communities we work in. As a company, weâ&#x20AC;&#x2122;re absolutely committed to safety. In fact, our first strategic initiative is to increase safety. We can always better ourselves tomorrow from where we were today,â&#x20AC;? MacDonald said. â&#x20AC;&#x153;Our belief, from a business standpoint, is that weâ&#x20AC;&#x2122;re familyowned, weâ&#x20AC;&#x2122;re committed to the long-term, and we truly believe safety is the fundamental component of being successful for the long-term.â&#x20AC;? â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s about encouraging everyone to be a safety leader, both within Sanjel, within Sanjel families, and within the communities we operate in.â&#x20AC;?

They have hosted two health and safety fairs in Canada and two in the U.S. over the last two years. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re committing to three per year,â&#x20AC;? MacDonald said. ɸ Page B31

DĹ˝Ć&#x;Ç&#x20AC;Ä&#x201A;Ć&#x;ŽŜÄ&#x201A;ĹŻ Ć?Ć&#x2030;Ä&#x17E;Ä&#x201A;ĹŹÄ&#x17E;Ć&#x152; ^Ć&#x2030;Ä&#x17E;ĹśÄ?Ä&#x17E;Ć&#x152; Ä&#x17E;Ä&#x201A;Ä?Ĺ&#x161; Ć&#x2030;Ć&#x152;Ĺ˝Ç&#x20AC;Ĺ?Ä&#x161;Ä&#x17E;Ä&#x161; Ä&#x201A; žŽÇ&#x20AC;Ĺ?ĹśĹ? Ä&#x201A;Ä?Ä?ŽƾŜĆ&#x161; ŽĨ Ä?Ĺ˝Ć&#x2030;Ĺ?ĹśĹ? Ç Ĺ?Ć&#x161;Ĺ&#x161; Ć?Ä&#x17E;Ç&#x20AC;Ä&#x17E;Ć&#x152;Ä&#x17E; Ä?ĆľĆ&#x152;ĹśĆ? Ä&#x201A;ĹśÄ&#x161; Ĺ&#x161;Ĺ˝Ç Ĺ˝ĹśÄ&#x17E; Ä?Ä&#x201A;Ĺś žŽÇ&#x20AC;Ä&#x17E; ŽŜ Ç Ĺ?Ć&#x161;Ĺ&#x161; Ć&#x161;Ĺ&#x161;Ä&#x17E;Ĺ?Ć&#x152; ĹŻĹ?ĨÄ&#x17E; Ĺ?Ĺś Ä&#x201A; Ć&#x2030;Ĺ˝Ć?Ĺ?Ć&#x;Ç&#x20AC;Ä&#x17E; ĹľÄ&#x201A;ŜŜÄ&#x17E;Ć&#x152;Í&#x2DC;

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

707,305, 5,>: 5V]LTILY Éş Page B30 â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;ve had tremendous success. We started in Williston, North Dakota. At first these events were really Sanjel-oriented, a way for us to introduce Sanjel to our spouses and children and really hit home to our Team Sanjel members that we were serious about safety. We then expanded and invited the communities we operate in to attend the events.

We want people to be safe at work and at home.

We want a truly safety culture, where people are safe 24/7, 365.â&#x20AC;?

MacDonald noted that Beachâ&#x20AC;&#x2122;s presentation touches on a â&#x20AC;&#x153;safety curve.â&#x20AC;? â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re extremely proud of where we are from a safety perspective. One of the reasons Spencer is on our team for these events is it hits home for us. Weâ&#x20AC;&#x2122;re coming from a position where we havenâ&#x20AC;&#x2122;t always been perfect. But we have learned from mistakes. We have seen from a business and culture perspective, that when our team members know we care about them, their spouse and their family and that we truly want them to get home, itâ&#x20AC;&#x2122;s truly

special.â&#x20AC;?

Sanjel has about 3,600 people working on their team. They have two main divisions â&#x20AC;&#x201C; pressure pumping and completions. Within pressure pumping is cementing, coil tubing and fracturing. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;ve been very pleased to engage the community. Part of our vision for our health and safety fairs is education. My hope would be everyone who attends leaves here and goes back home that much smarter. It just takes one, and one moment, where a safety leader recognizes something unsafe is about to happen and has the strength to say â&#x20AC;&#x2DC;Hey! Thatâ&#x20AC;&#x2122;s unsafe.â&#x20AC;&#x2122; If this causes that to happen, then itâ&#x20AC;&#x2122;s been a success.â&#x20AC;? â&#x20AC;&#x153;At the end of the day, the buy-in weâ&#x20AC;&#x2122;ve had from our people is tremendous, and the engagement with the community is excellent,â&#x20AC;? he concluded.

Amey Woermke of Sanjel has her blood pressure tested

by Carlo Anacio, a registered nurse, during the Sanjel Health and Safety Fair.

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Most pumps in southeast Sask. are sucker rod pumps Estevan â&#x20AC;&#x201C; Bottom hole pumps have been a part of Billy Lesterâ&#x20AC;&#x2122;s life for nearly two decades. Now, he looks after sales for pumps, and other artificial lift

systems, for TS&M Supply. â&#x20AC;&#x153;Iâ&#x20AC;&#x2122;ve been doing it for 18 years, since right out of high school,â&#x20AC;?

Lester said.

Heâ&#x20AC;&#x2122;s originally from

Bienfait, but now lives just outside of Estevan.

Lester started with CE Franklin, and remained with that company until it was purchased by NOV in

the fall of 2012. NOV is the parent company of TS&M Supply, based in Estevan. â&#x20AC;&#x153;I started fixing pumps as a technician and graduated to supervisor and then pump shop manager. â&#x20AC;&#x153;Now I look after all artificial lift for Saskatchewan and Manitoba for TS&M. That would be sucker rod, pumps, jacks.â&#x20AC;?

His formal title is ALS account manager. â&#x20AC;&#x153;The majority of what we deal with is sucker rod pumps, about 80 per cent,â&#x20AC;? he said.

A further 15 per cent of pumps in the area are progressing cavity pumps, and five per cent are electric submersible pumps. â&#x20AC;&#x153;We do designs for customers from the bottom from the top,â&#x20AC;? he said.

The starting point is usually the directional survey and the expected production. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;ll size

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the bottom hole pump and the sucker rods â&#x20AC;&#x201C; how many of each type of rod, if it needs to be guided.â&#x20AC;?

Guides are centralizers that keep rods from wearing against production tubing, an important consideration in deviated wells or in build sections. â&#x20AC;&#x153;Youâ&#x20AC;&#x2122;ll usually guide the area that is crooked,â&#x20AC;? said Lester. â&#x20AC;&#x153;Then it will attach to the pumpjack or strap jack.â&#x20AC;?

Sizing for jacks is based on how deep the hole is, how much production it creates, and the rod string. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;ll also sell an automation package that controls the speed of the pumpjack based on the wellâ&#x20AC;&#x2122;s production.â&#x20AC;?

NOV sells its own DPEG pumping unit, but the vast majority of jacks in the region are the HG jack, noted for its bent walking beam. â&#x20AC;&#x153;Nine times out of 10 theyâ&#x20AC;&#x2122;ll have the jack lined up,â&#x20AC;? Lester said. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;ll tell them you need a 456 based on

this rod string and how much production youâ&#x20AC;&#x2122;re making.â&#x20AC;?

As for pumps themselves, he said, â&#x20AC;&#x153;Some of the stuff weâ&#x20AC;&#x2122;re using in the Bakken we were using 20 years ago in Virden. The basic concept of the pump is the same as 20 years ago. â&#x20AC;&#x153;Some of the stuff weâ&#x20AC;&#x2122;re dealing with today includes frac sand eventually being produced â&#x20AC;&#x201C; that and gas handling.

Thereâ&#x20AC;&#x2122;s a lot of gas being produced in these horizontals.â&#x20AC;?

Lester explained that in a vertical well, a pump could be placed below the gas level, but thatâ&#x20AC;&#x2122;s often not the case with horizontals, and the pump will be sometimes moved lower into the build and then horizontal section.

Older vertical wells had the pumps landed in the well hanging straight down and could last two to six years (and every field have cases of a pump running 20+ years, but these are the anomalies). ɸ Page B33

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707,305, 5,>: 5V]LTILY Billy Lester is the arƟĮĐŝĂů ůŝĨĞ ƐLJƐƚĞŵƐ ĂĐĐŽƵŶƚ ŵĂŶĂŐĞƌ ĨŽƌ d^ΘD ^ƵƉƉůLJ ŝŶ ƐƚĞǀĂŶ͘

ɺ Page B32 Today’s horizontal wells have the pumps landed anywhere from 20 degrees off vertical to as low in the well as 90 degrees. Yes, the pump is lying flat and stroking back and forth.

When the pumps begin to wear, their efficiency or capacity to lift fluid declines and must be pulled out of the well for servicing. This requires a service rig, and the pump is sent to the pump shop where a technician performs a tear-down and inspection and repairs/replaces components accordingly.

The company has

pump shops in Estevan, Carlyle, Virden, Weyburn, Moosomin and Melita. That means there’s a pump shop within less than an hour’s drive, and in many cases, less than half an hour, for almost the entire southeast Saskatchewan and southwest Manitoba oilpatch.

TS&M has 12 people in the Estevan pump shop, two of whom focus on automation.

Lester noted that makes it convenient for the customer, because a pump can be pulled, fixed, and back on location quickly. And even if a different pump is sent

out, analyzing the pump that came out of the hole can say a lot about what’s going on with that well.

“Pump tear-downs are crucial in analyzing well issues such as sand and gas handling,” Lester said.

“We can look at the pump card and the pump and diagnose why the well was or wasn’t working, i.e. pounding on the top indicates the pump was set too low.

“Pump shops have many high-tech tools that the trained technicians use to gauge and measure the inside and

outside of components, pressure test or vacuum test parts.

“Typical tolerances we are talking about range from 4/1000ths to 10/1000ths of an inch (the thickness of one to three pages of this newspaper), so as the pumps wear and the tolerance becomes larger, the pumps begin to fail to lift fluid and must be pulled for service.”

He added, “Developments in the pump business include continued look at different metallurgy (for resistance to corrosion), or harder surfaces for wear

resistance, or changes to parts that contain/ direct flow. Most often the ‘design changes’ are a slight modification to something invented/ designed 50 to 60 years ago. In many cases, today’s machining technologies and capacity to machine special metals make it easier than in the past with better quality and usually modest improvements to the original design, and are most often forgotten about.”

Some people say a pump is a pump. Lester noted, “Veterans in the business might say, ‘I it

goes on a bottom hole pump and needs to be threaded, polished, bored, punched or drilled … it’s been done before by someone.’ Not to say new things are not being developed as new, but in many cases they are a re-work of something from the past.”

“On our end, it’s been steady. We’ve been consistently stead. It should be a busy winter.

Drilling rigs are picking up,” he said. “Some big producers here had cut back on drilling rigs, but they’re starting to ramp up.”

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707,305, 5,>: 5V]LTILY

A little more about sucker rod pumps, from TS M Conventional sucker rod pumping is the simplest of all ALS methods in the region.

Billy Lester, artificial lift systems account manager with TS&M Supply, provided the following information about sucker pumps:

R5Äť 5 #-5^. "()&)!3_5 goes back to the Chinese or Egyptians (300 AD) lifting water from canals or wells.

R5Äť 5 , 5 , 51 &&5 over 50 style or types of pumps but the basics and their components go back to the first

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

crude oil like? I hear jf5 5),5if5 5)#&65 1" .5 ) -5." .5' (>_5 &&65#.5, & . -5.)5." 5 fluid properties as to #.-5 #&#.35.)5^Ĺ&#x201A;5)1_V88 the higher the number, the lighter the fluid and easier it will flow/move through the rock to the well.

R5 ),5." 5, ,65 here is a fluids comparison that might put things into perspective:

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PROFESSIONAL LAND SURVEYORS

pumps specific to oil wells dating back to the late 1800s.

R5 /'*-5 , 5( 5 because there is not enough pressure in the rock/reservoir to flow or lift the fluids to surface.

R5 " .5'#!".5 5 pumped? Oil, fresh water, salt water or a mix of them.

R5 5, ,5'#!".5 -%65^ " .5#-5." 5

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75 2 '*& 95jf5 5 oil has fluid properties that it would flow or pour like milk; 32 5)#&5Ĺ&#x201A;5)1-5&#% 5 cream; Â Lloydminster gi5 5" 035 ,/ 5 flows like sour cream or mayonnaise.

R5Äť 5 , 5 , 5go5.)5jf5 parts threaded together to become a complete pump.

R5 5*/'*5#-5,/(5)(5 the bottom of sucker

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rods and these then connect on surface to a pumpjack or device that reciprocates and causes the pumping action.

R5 /'*-5'/-.5 5 landed in fluid to work. Äť 5 35 )5().5^-/ %_5." 5 fluid from the formation.

R5 /'*-5" 0 5-)' 5 moving parts that eventually wear due to metal-to-metal contact, or the metallurgy corrodes because of salt water contact or acidic type fluids, or fluid flow eventually washing out parts working under high pressures, etc.

R5 &&-5 (5*,) / 5 sands (no different than fine sand found on a beach) that flows in with the oil and water and can cause wear or scoring.

R5 51 &&5' 35 &-)5 produce gas that might cause pumping problems downhole (mechanical damage, low efficiencies).

R5 /'*-5 (5" 0 5 be configured to better handle sand, solids, gas, corrosion attack.

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CanEra Energy provides $20,000 for STARS training program

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Â&#x201E; By Brian Zinchuk Estevan â&#x20AC;&#x201C; Medical personnel in communities throughout the province will benefit from additional trauma

training from STARS, thanks in part to a $20,000 donation from CanEra Energy.

On Oct. 17, approximately 50 people, primarily CanEra staff,

but also local officials, attended the presentation and lunch. It was highlighted by a tour of a recreational vehicle the likes of which youâ&#x20AC;&#x2122;ve probably never seen.

Thereâ&#x20AC;&#x2122;s a bed in it all right, or rather a stretcher, the type you find in a hospital emergency room. Indeed, the main part of the RV is constructed to mimic an

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emergency room, with heart monitor screen on the wall and drawers full of emergency medical

supplies. And on the stretcher lies a male mannequin. ɸ Page B36

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Keeping the bleeding, breathing mannequin alive ɺ Page B35 The mannequin has moving eyes, and a mouth that can be intubated. There are leads to connect the heart monitor to. It will blink, groan, and even bleed. The idea is for medical staff to practise on it.

In the back room, an operator at a computer terminal can monitor their performance. They can also make the patient go sour, as it were, and see how the staff reacts.

Pilots have flight simulators to train for worst case scenarios, and now Saskatchewan health care providers will have their own simulator.

Brian Evans, vice-president and general counsel of CanEra spoke of training about local physicians and care providers outside the larger centres. The training unit will be taken around the province to improve the skills of those care providers that otherwise might not have a lot of exposure to trauma cases.

David Evans of STARS said, “Donor support is absolutely integral to our organization.

“From all of STARS, thank you. It allows us to be patient-centric and put patients first. It’s an emergency department in the air.

“We always look to support organizations that

support the communities in which we operated,” said Paul Charron, CEO of CanEra, who came down to Estevan for the event. Noting the substantial distances between their own operations in southeast Saskatchewan, he added, “We fell this was a perfect opportunity to support STARS.” On Sept. 20 Estevan was the first community in the province to open a dedicated helipad at its hospital for STARS. Watch for an exclusive interview with CanEra Energy CEO Paul Churron in the December edition of Pipeline News.

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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.

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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Well Servicing

now hiring whatâ&#x20AC;&#x2122;s in it for you?

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Drillers Floorhands Derrickhands Motorhands Greenhands

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Wanted Immediately!

Wanted Immediately â&#x20AC;&#x201C; Experienced Nitrogen operator/regional business development manager to lead our Carlyle and regional operations. Will train an ambitious, entrepreneurial individual that has downhole experience. Great career growth opportunity!

Send your resumes to HR@CopperTipEnergy.com

Savanna Energy Services Corp.

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Sentry International Inc. ArtiďŹ cial Lift Systems 1150, 444-5th Ave. SW. Calgary, Alberta T2P2T8 P: 403-775-7077 F: 403-775-7428 Estevan SK. 306-421-4353 Nisku, AB. 780-955-8806

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Call 306-421-4353 for details.

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Pipeline News

SECTION C November 2013

Pipeline News was 2 sections this month.

Stay tuned for next month focus: STIMULATION