Pipeline News February 2014

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February 2014

A3 Co-op Refinery Fourth Fire

FREE

A5 Jason Kenny Talks Workforce

*HUHKH 7VZ[ 7\ISPJH[PVU 5V Volume 6 Issue 9

A12 Auctions For Mineral Rights

B1 Petroleum Centre Update

Gerry Woznow is the general manager of the new Microtel Inn & Suites by Wyndham in Lloydminster. The 94-room hotel constructed by MasterBuilt Hotels, based in Calgary, is expected to open this April. WŚŽƚŽ Ä?LJ 'ĞŽč >ĞĞ

There are many

career opportunities

in Saskatchewan’s energy sector... and we know what training you need to get started

Contact us to find out more: Toll-free 1-866-999-7372, or visit southeastcollege.org

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INSIDE SECTION A 4

Husky adds two thermal projects

15 Life in a camp 11 years ago

5

Jason Kenny talks anout workforce

6

Editorial

19 Manufactured housing can make a lot of sense

7-8 Opinion

20 In depth coverage: A night at Boundary Lodge

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SECTION B 1

Petroleum Centre takes shape

3

Estevan Energy Expo

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7

Microtel opens in Weyburn...

18 Ten years, 115 acres, hopefully 3,000 people 24 Kindersley Inn expansion ώϲ WĹ˝ĹŻÇ‡ĹľÄžĆŒĆ? Ä?Ä‚Ĺś Ć?ĞůĞÄ?Ć&#x; ǀĞůLJ ĆŒÄžÄšĆľÄ?Äž Ç Ä‚ĆšÄžĆŒ

14 ...and will open soon in Lloydminster

PIPELINE NEWS :HZRH[JOL^HUÂťZ 7L[YVSL\T 4VU[OS`

March 2014 Focus

UP IN THE AIR

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dKW E t^ )RXUWK ÀUH URFNV &R RS UHÀQHU\ „ By Brian Zinchuk Pipeline News Regina – At 3:30 p.m. on Christmas Eve, after much of the crew went home for the holidays, an explosion and fire rocked the Consumers’ Co-operative Refineries Ltd. complex in Regina.

There were no injuries reported.

Vic Huard, Co-op vice-president of corporate affairs, said on Dec. 31, “We’re continuing to safety the area, working from the outside in. We have to be extra cautious to make sure there are no structural issues.�

By January 17, some production capacity had been restored. The explosion knocked production from the 130,000 barrels per day capacity recently reached due to a massive expansion down to 60,000 bpd. By January 17, it was back up to 90,000 bpd, the level of production the refinery was at prior to the Section V expansion. “We will continue to operate at this level until repairs can be made to the damaged units,� Gil Le Dressay, Federated Co-operatives Limited (FCL) vice-president of refinery operations said in a release. “It is still too early in the assessment process to determine a timeline for the return to full production. “There are many people to thank for helping us with this situation. This includes the extraordinary efforts of CRC response teams, who mitigated and limited damages at the time of the incident, and those of employees who have secured additional supplies and made process and mechanical adjustments since the incident.�

The investigation into the cause of the incident, which damaged a unit used to manufacture gasoline from propane and butane, is being led by Regina Fire and Protective Services. It took several weeks before investigators were on site, which was in midJanuary. CRC personnel are co-operating fully with investigators as they move from the least-damaged areas to the most damaged. Regina Fire and Protective Services have described the investigation as complex and early estimates are that a report into causation may take up to one year.

With additional supplies secured, FCL does not expect any shortages or restrictions to gasoline or diesel sales at retail co-operatives across Western Canada.

In the Dec. 31 press teleconference, Le Dressay said, “We had a release in our poly unit.�

That unit processes propane and butane into gasoline. The subsequent fire was suppressed until it burnt out. “We knew there were secondary breeches in the area,� said Le Dressay.

Four units were taken offline, including the cat cracker No. 1, gas concentration unit No. 1 and the poly unit. The gasoline desulfurization unit nearby was also offline.

The gas concentration unit takes light ends from the cat cracker unit and separates it. “Cat 1 will be down for a while,� he said.

The area of the explosion was estimated to be 50 feet by 50 feet in size. A wall was pushed out. In tackling the fire, they took a “surround and drown� stance.

The 2011 event resulted in a larger area damaged by fire, but this event had more concussion damage.

The area affected is in Section II, the second oldest part of the plant. The poly unit did not have a “revamp� or refurbishment in recent years. It went online in the 1950s and has been revamped several times since. The gas desulfurization unit had been revamped in recent years.

dŚĞ ŽŜĆ?ĆľĹľÄžĆŒĆ?Í› Ĺ˝Í˛Ĺ˝Ć‰ÄžĆŒÄ‚Ć&#x;ǀĞ ZÄžÄŽĹśÄžĆŒĹ?ÄžĆ? >ĆšÄšÍ˜ Ä?ŽžƉůĞdž Ĺ?Ĺś ZÄžĹ?Ĺ?ŜĂ ŚĂĆ? ĆŒÄžĆ?ĆšĹ˝ĆŒÄžÄš Ć?ŽžĞ ŽĨ Ĺ?ĆšĆ? Ć‰ĆŒĹ˝ÄšĆľÄ?Ć&#x;ŽŜ Ä?ĂƉĂÄ?Ĺ?ƚLJ Ä‚ĹŒÄžĆŒ LJĞƚ Ä‚ĹśĹ˝ĆšĹšÄžĆŒ ĞdžƉůŽĆ?Ĺ?ŽŜ ĂŜĚ ÄŽĆŒÄžÍ˜ dŚĞ žŽĆ?Ćš ĆŒÄžÄ?ĞŜƚ Ĺ˝Ä?Ä?ĆľĆŒĆŒÄžÄš ŽŜ ÄžÄ?͘ ĎŽĎ°Í˜ WŚŽƚŽ Ä?LJ ĆŒĹ?Ä‚Ĺś Ĺ?ĹśÄ?Śƾŏ

This explosion and fire was the fourth in recent years for a facility that had enjoyed an untarnished record for decades. The first explosion fire on Oct. 6, 2011 and injured several workers. There were two more relatively minor incidents since. Prior to the Christmas Eve event, only the first had been considered an insurable claim. This will be claimed under insurance. “It’s very alarming to have this many incidents in the facility,� Le Dressay said. “We’ve been part of this community for over 80 years.�

When asked about safety concerns for neighbours of the plant, he said they see no immediate

danger outside the complex.

Catastrophic failures like those seen in Hollywood movies aren’t possible, he said. “Do we have concerns? Of course we do.�

As for what has been done since the fire and in the coming months, the Co-op said they would first safety the area, turn it over to investigators and make a more thorough assessment. Then they would start ordering equipment for repairs.

Asked if there would be layoffs as a result, coop officials said on Dec. 31 they were not planning any layoffs, and in fact staff would be asked to put in additional hours. Additional contractors would be needed to repair the facility.

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BRIEFS Husky adds two thermal projects to Lloyd list

Spill shuts Clipper Calgary – Enbridge Inc. temporarily shut down its Alberta Clipper oil pipeline as a precaution following a leak at a pumping station south of Regina the morning of Jan. 18.

The spill of approximately 125 barrels of heavy oil product was isolated at the Rowatt pumping station on Line 67 also called the Alberta Clipper.

The Clipper is a 450,000 bpd, 36-inch heavy oil line that runs from Hardisty, Alta. to Superior, Wi. Crews restarted the line by 9.20 p.m. after the spill was detected at the station around 10.50 a.m.

Due to high winds, some spray landed on the snow of an adjacent farm field and has been picked up according to an update from Enbridge on Jan. 19.

All regulatory and provincial officials, including emergency response officials were been notified and the source of the release has been contained. “We are committed to the goal of reaching zero spills, and will thoroughly investigate the incident for lessons learned,� said Enbridge in an update.

Enbridge first responders with clean-up and response equipment were on site, and expected the cleanup to be completed on Jan. 19.

Enbridge reports there was no impact to the public, wildlife or waterways.

Briefs courtesy Nickle’s Daily Oil Bulletin

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„ By Geoff Lee, Pipeline News John Cairns, Battlefords News-Optimist Calgary – Husky Energy continues to build its heavy oil foundation in the Lloydminster area with the sanctioning of two new heavy oil thermal projects that will produce a total of 20,000 barrels per day.

Engineering is already underway with construction of the 10,000 bpd Edam East project and the 10,000 bpd Vawn project scheduled to begin this year with first oil expected in 2016.

The Edam East and Vawn projects announced on Jan. 9 will enable Husky to meet its heavy oil thermal production goal of 55,000 bpd in the region in 2016 – one year earlier than anticipated.

The new thermal facilities will bring to nine the number of heavy oil thermal projects Husky has developed since Pikes Peak in 1981 and the seventh since 2011. “Three years ago, with heavy oil production fighting to remain flat, we implemented a strategy to transform and rejuvenate the business. We are seeing the results of that today,� said CEO Asim Ghosh in a statement.

In 2010, heavy oil thermal production was just 18,000 bpd. “Steady performance from our existing thermal facilities and these two new plants, along with projects currently under

construction at Sandall and Rush Lake, will add another 33,500 bpd of new production over the next three years, more than offsetting declines in non-thermal production,� added Ghosh.

Husky’s growing focus on thermal projects is guided by a strong portfolio of opportunities and a proven template of smaller steam-assisted gravity drainage (SAGD) plants providing better access to heavy oil reservoirs.

The two new plants will be nearly identical to the Pikes Peak South and Rush Lake projects.

Husky said a solid return on investment is being generated from low operating costs, which were under $10 per barrel at existing plants in 2013, efficient project execution, time to first oil, and the long life nature of the projects.

Meanwhile, steaming is currently underway at the 3,500 bpd Sandall thermal project with first production expected this quarter.

Construction is advancing at the 10,000 bpd Rush Lake project, with first oil expected in the second half of 2015.

Husky has a pipeline of additional thermal projects under evaluation for development.

The new thermal developments follow the release of Husky’s $4.8 billion 2014 corporate spending plans in December.

The budget includes $2.5 billion for the development of heavy oil and other oil and liquids-rich gas resource plays in Western Canada. ɸ Page A9

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BRIEFS Tuscany Energy adds producing well in Macklin

:Ä&#x201A;Ć?ŽŜ <Ä&#x17E;ŜŜÄ&#x17E;Ç&#x2021;Í&#x2022; DĹ?ĹśĆ?Ć&#x161;Ä&#x17E;Ć&#x152; ŽĨ ĹľĆ&#x2030;ĹŻĹ˝Ç&#x2021;ĹľÄ&#x17E;ĹśĆ&#x161; Ć&#x2039;ĆľÄ&#x201A;Ć&#x152;Ć&#x161;Ä&#x17E;Ć&#x152;Ä?Ä&#x201A;Ä?ĹŹÄ&#x17E;Ä&#x161; Ć?Ä&#x17E;Ç&#x20AC;Ä&#x17E;Ć&#x152;Ä&#x201A;ĹŻ ĹľÄ&#x17E;Ä&#x161;Ĺ?Ä&#x201A; Ĺ?ĹśĆ&#x161;Ä&#x17E;Ć&#x152;Ç&#x20AC;Ĺ?Ä&#x17E;Ç Ć? Ä&#x161;ĆľĆ&#x152;Ĺ?ĹśĹ? Ä&#x201A; ŽŜĆ?Ä&#x17E;Ć&#x152;Ç&#x20AC;Ä&#x201A;Ć&#x;Ç&#x20AC;Ä&#x17E; WÄ&#x201A;Ć&#x152;Ć&#x161;Ç&#x2021; ŽĨ Ä&#x201A;ĹśÄ&#x201A;Ä&#x161;Ä&#x201A; ĨƾŜÄ&#x161;Ć&#x152;Ä&#x201A;Ĺ?Ć?Ĺ?ĹśĹ? Ä&#x161;Ĺ?ŜŜÄ&#x17E;Ć&#x152; Ĺ?Ĺś >ĹŻĹ˝Ç&#x2021;Ä&#x161;ĹľĹ?ĹśĆ?Ć&#x161;Ä&#x17E;Ć&#x152; ŽŜ Ä&#x17E;Ä?Í&#x2DC; Ď­Ď´Í&#x2DC; /Ĺś Ĺ&#x161;Ĺ?Ć? ĹŹÄ&#x17E;Ç&#x2021;ŜŽĆ&#x161;Ä&#x17E; Ć?Ć&#x2030;Ä&#x17E;Ä&#x17E;Ä?Ĺ&#x161; Ĺ&#x161;Ä&#x17E; Ć&#x161;Ä&#x201A;ĹŻĹŹÄ&#x17E;Ä&#x161; Ä&#x201A;Ä?ŽƾĆ&#x161; Ć&#x161;Ĺ&#x161;Ä&#x17E; Ć?ĆľÄ?Ä?Ä&#x17E;Ć?Ć? ŽĨ Ć&#x161;Ĺ&#x161;Ä&#x17E; Ć&#x161;Ä&#x17E;ĹľĆ&#x2030;Ĺ˝Ć&#x152;Ä&#x201A;Ć&#x152;Ç&#x2021; ĨŽĆ&#x152;Ä&#x17E;Ĺ?Ĺ?Ĺś Ç Ĺ˝Ć&#x152;ĹŹÄ&#x17E;Ć&#x152; Ć&#x2030;Ć&#x152;Ĺ˝Ĺ?Ć&#x152;Ä&#x201A;Ĺľ ĨŽĆ&#x152; Ĺ˝Ĺ?ĹŻÄŽÄ&#x17E;ĹŻÄ&#x161; Ä?ĆľĆ?Ĺ?ĹśÄ&#x17E;Ć?Ć?Ä&#x17E;Ć? and manufacturers that he met with in Lloydminster.

Â&#x201E; By Geoff Lee Lloydminster â&#x20AC;&#x201C; Expect oil and gas companies in Western Canada to hire more foreign workers, immigrants and unemployed Canadians in the coming months to help fill the shortage of skilled workers.

That was the message federal Employment Minister Jason Kenney imparted to Lloydminster businesses while in town for a Conservative Party of Canada fundraising dinner on Dec. 18 at the Lloydminster Exhibition Grounds.

Kenny is seen in some circles as a possible successor to conservative leader and prime minister Stephen Harper. â&#x20AC;&#x153;Iâ&#x20AC;&#x2122;ve been in town all day. I was touring some oilfield supply companies and some manufacturing this morning and getting a handle on their challenge,â&#x20AC;? said Kenney during a media scrum prior to his keynote speech to party supporters. â&#x20AC;&#x153;I met with the Filipino community which is dynamic and fast growing. â&#x20AC;&#x153;I am hearing the same thing I did the last time I was in Lloydminster. It is all about labour shortages. â&#x20AC;&#x153;In this part of the country itâ&#x20AC;&#x2122;s a good problem to have. Itâ&#x20AC;&#x2122;s a good problem of more growth than there are people to fill the jobs.â&#x20AC;?

Kenney said since the Conservatives came to office there has been a 1,000 per cent increase in the number of immigrants to Saskatchewan and a tripling of immigrants in Alberta to fill needed jobs. â&#x20AC;&#x153;I think in 2005 and â&#x20AC;&#x2122;06 Lloydminster got less than 10 per-

manent resident immigrants. Now we are up to 400 or 500 a year,â&#x20AC;? said Kenney.

He noted that number doesnâ&#x20AC;&#x2122;t include the temporary workers, many of whom will transition into permanent status in Canada.

Kenney told Pipeline News his number one issue is to ensure unemployed Canadians are prepared to take jobs that available, including those in the oilfield in Western Canada.

He said the federal government met for the first time in five years with provincial ministers responsible for labour markets to break down barriers to mobility and standardize credentials for trades and professionals.

Kenney also advocates harmonizing our apprenticeship systems and managing â&#x20AC;&#x153;smarterâ&#x20AC;? spending on post-secondary education. â&#x20AC;&#x153;We are doing a lot of work in that area but we need the provinces to work together in the same direction,â&#x20AC;? he said about standardizing credentials. â&#x20AC;&#x153;Saskatchewan and Alberta are pretty good in this respect â&#x20AC;&#x201C; Quebec and Ontario much less so. We are trying to get them working in the same direction.â&#x20AC;?

Kenney referred to Lloydminster as â&#x20AC;&#x2DC;ground zeroâ&#x20AC;&#x2122; for what he called the paradox of too many Canadians without jobs in an economy that has more jobs than workers.

More Canadians could find jobs out west with the $500 million Canada Job Grant for training announced in the federal budget last spring.

X Page A10

Calgary â&#x20AC;&#x201C; Tuscany Energy Ltd. kick started its 2014 operations in the Macklin, Sask. area by placing a recently completed horizontal heavy oil well on production at an initial rate of about 125 barrels per day.

Tuscany holds a 100 per cent interest in the well which has been connected to the Macklin central battery.

The Calgary-based heavy oil company expects the well will decline to approximately 50 barrels of oil per day over the next six months with production rates remaining relatively stable thereafter.

The well is expected to bring Tuscanyâ&#x20AC;&#x2122;s average daily production to approximately 700 barrels of oil equivalent per day during the first quarter of 2014.

The producing well was drilled in December and was partly financed from the proceeds of a $500,000 issue of flow through shares.

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

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306-634-8460 307 Kensington Ave. Estevan

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PIPELINE NEWS

EDITORIAL

Mission Statement: 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 &-)(

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Is there light at the end of the tunnel?

Is there a light at the end of the tunnel when it comes to housing and accommodations in the Saskatchewan oilpatch?

It just may be the case. After five years of nearly every oilpatch town struggling with more permanent housing as well as temporary accommodations, the market has responded.

In Kindersley, Shaunavon, Estevan, Weyburn, Lloydminster, Stoughton, Midale, Carlyle, Carnduff we have seen new hotels spring up. Weâ&#x20AC;&#x2122;ve even seen a motel made of shipping containers in the middle of a field west of Estevan.

One person whose lived in Weyburn all their life pointed out that he never expected to see two threestory hotels in Stoughton. Yet here they are, at the corner of Highways 47 and 13.

Several camps have come into play as well, in Kindersley, Estevan, Redvers, Waskada and soon Melita.

On the housing construction side, weâ&#x20AC;&#x2122;re seeing continual growth in numerous communities. Weâ&#x20AC;&#x2122;re not talking one or two units, but hundreds. In some cases, itâ&#x20AC;&#x2122;s about time. But at least there is relief on the horizon.

At the same time, weâ&#x20AC;&#x2122;ve seen the pressure slack off a little bit. The number of active drilling rigs during the summer of 2013 was down noticeably from previous years despite stronger oil prices. The rig count is the leading indicator for the entire industry.

The Boundary Dam carbon capture project, which peaked at about 1,500 workers, put enormous additional strain on housing, not just in Estevan, but the entire region. That project is nearing its conclusion.

New hotels and camps arenâ&#x20AC;&#x2122;t filling up immediately

upon opening.

The cost of a room for a month has shot up to point where Estevan Mayor Roy Ludwig said $1,400 and $1,500 a month for a two-bedroom apartment is being considered â&#x20AC;&#x153;affordable,â&#x20AC;? although he acknowledges itâ&#x20AC;&#x2122;s really not.

For some people in the overheated market, housing is simply unobtainable. Theyâ&#x20AC;&#x2122;ve had to resort to a shelter in Estevan.

Last summer we pointed out that housing has been one of the top five ongoing stories since this paper came to be in its current form in 2008. Thatâ&#x20AC;&#x2122;s not likely going to end soon. A shortage of housing means a shortage of workers because thereâ&#x20AC;&#x2122;s nowhere for additional workers to live. That in turn curtails growth of businesses who could hire more people, if they had somewhere to put them.

While condos, houses, hotels and camps have sprouted up and continue to do so, precious few rental properties are in the works. This, despite the fact it is the form of housing most desperately needed. The problem is simple: the business case for rental properties is broken.

What builder wants to wait 15 years to hit payout on a building full of rental suites, when in 18 months they can go from bare dirt to sold out and done on a condo complex? During those 15 years, there are sure to be times of high vacancy due to recessions and slow downs. Then thereâ&#x20AC;&#x2122;s the fact that some tenants will be destructive, or slow to pay their rent, or skip town. Ask any long-term landlord how much fun it is, and to a one, you will get a war-weary response.

In the end, there are more places to lay your head at night, just be prepared to pay for it.

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OPINION

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Lock up your women and children The irony could not be more pronounced. Here was a man with a long grey beard and hair and biker-style leather jacket standing before the RM of Estevan council, protesting a proposed new camp near his home, not far from the Estevan weigh station. â&#x20AC;&#x153;Not only that, youâ&#x20AC;&#x2122;re going to be adding 260 people of questionable origin, in my neighbourhood. Drug dealinâ&#x20AC;&#x2122;, theivinâ&#x20AC;&#x2122;, whatever you want to call them, thereâ&#x20AC;&#x2122;s a good percentage of that thatâ&#x20AC;&#x2122;s going to show up. Some of you already know whatâ&#x20AC;&#x2122;s happened with our city with the transients weâ&#x20AC;&#x2122;ve got. Personally, I donâ&#x20AC;&#x2122;t want to have to stand guard over my property, nor does anybody else here. Thatâ&#x20AC;&#x2122;s what weâ&#x20AC;&#x2122;ll end up with folks. I guarantee that. Iâ&#x20AC;&#x2122;ve followed construction people since 1960 at Boundary Dam. There are some good people, but the majority not good people. I could say other things, but I donâ&#x20AC;&#x2122;t want to right now,â&#x20AC;? said the man.

Could he not see how someone could look at him, and perhaps pass a similar judgement? For someone who looked like he could have just walked out of a Hells Angels clubhouse, prejudice could have been just as biting.

The Nov. 13 public hearing into this proposed camp was the most perfect example of NIMBY â&#x20AC;&#x201C; not in my backyard â&#x20AC;&#x201C; I have ever seen. People with acreages or farms within sight of this proposed location were up in arms. Remember, on this flat land, within sight is a considerable distance â&#x20AC;&#x201C; the width of a town, in fact. If the proponent had shown up, perhaps we could have had a lynching.

I had caught wind of the opposition a few weeks prior, when a woman showed up on my doorstep in Estevan while trick-or-treating, asking

for my signature on a petition. In quizzing her for a few minutes, it became clear that this proposal, a half mile from her home, might as well have been a minimum security prison chock full with pedophiles and nothing but a sign keeping them in.

Sitting through the 45-minute long hearing, I heard every possible reason under the sun to oppose its development. The Canadian Pacific representative said if there was a highway approach that would cross their tracks, it would likely require some sort of warning system. That was rich. How many people have died or been hit by trains at Macoun, just a few miles down the track, where there is no such warning system? Hasnâ&#x20AC;&#x2122;t Macoun been around for about 100 years or so?

Then there was the environmental consequences â&#x20AC;&#x201C; what about 260 vehicles parked there? What if their oil pans leak? I wondered if this would be much different than the oil pans of the tractors or trucks of any farmer on the prairies. Iâ&#x20AC;&#x2122;m sure none of them leak.

If there was ever a case of lock up your women and children, this hearing was it.

And that hurt.

Thatâ&#x20AC;&#x2122;s because Iâ&#x20AC;&#x2122;ve been that guy, staying in camps like this. Iâ&#x20AC;&#x2122;ve built pipelines from Moosomin to Fort St. John, B.C., and back. Iâ&#x20AC;&#x2122;ve lived out of my rusted out Ford camper van for months on end. I spent a month in a northern Alberta camp wishing every day I could go home.

By and large, the people who do this sort of work donâ&#x20AC;&#x2122;t want to, in that they donâ&#x20AC;&#x2122;t want to be away from home for long, extended periods of time.

If there was good paying work at home, why would they be on the road in the first place? All they want

to do is put in their time as quickly as they can, make a buck, and go home, to be with their wives and children. Hopefully while they are gone, that wife doesnâ&#x20AC;&#x2122;t decide to throw them out. Unfortunately, in my experience as a big-inch pipeliner, that was the case in most situations. Very few career pipeliners stayed married to just one woman.

I like to think I am a respectable person, a husband and father. Iâ&#x20AC;&#x2122;ve been a commissioned officer in the Canadian Forces. My job in the reserves was to teach kids how to be better people. Iâ&#x20AC;&#x2122;m not a drinker. Iâ&#x20AC;&#x2122;m not a druggie. Iâ&#x20AC;&#x2122;ve never been â&#x20AC;&#x153;drug dealinâ&#x20AC;&#x2122; or thievin.â&#x20AC;&#x2122;â&#x20AC;?

For much of my life Iâ&#x20AC;&#x2122;ve been a reporter, whose entire livelihood depends on integrity.

As for the bad apples, yes there are some. But where isnâ&#x20AC;&#x2122;t there? Go down any street and knock on 260 doors. How many beat their wives? How many have criminal records? From the number of people who showed up, statistically speaking, several of them may have smoked dope at one time or another, might have a record, or beat their own wives.

I am not an advocate of this camp (which was eventually turned down). I donâ&#x20AC;&#x2122;t know much about it. With the Boundary Dam carbon capture project wrapping up, I canâ&#x20AC;&#x2122;t see a market for it. But what I am most definitely against is painting everyone who has to stay in facilities like this with such a broad, black brush. I most certainly donâ&#x20AC;&#x2122;t deserve it, and I doubt most of you do, either.

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

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Out of the box P3 housing solutions Give me shelter.

The need for attainable housing continues to be one of the leading issues in oilfield communities in Saskatchewan and Alberta.

The Canada Mortgage and Housing Corp forecasts the average cost of a housing unit in Canada will increase 1.9 percent to $385,000 in 2014.

The average resale price in Saskatchewan is forecast to increase from $280,000 in 2013 to $285,000 in 2014.

It gets pricier in Alberta where the average resale price is expected to jump from $371,200 in 2013 to $380,700 in 2014.

Affordable or attainable housing is essential in order for oil and gas companies to attract new workers to keep up with growth in hot markets.

The key to providing attainable housing these days seems to rest with public private partnerships or P3s as they are called.

The city of Lloydminster has launched a P3 pilot project called the Community Housing Initiative Program or CHIP for short to help renters become homeowners.

CHIP enables applicants with moderate incomes to overcome a common challenge â&#x20AC;&#x201C; saving for a down payment â&#x20AC;&#x201C; and transition to homeownership.

Some 2 bedroom apartments in Lloydminster rent for more than $1,500 a month.

The city is working the Saskatchewan Affordable

Home Ownership Program and local businesses to provide five CHIP townhouses in a new subdivision in the border city.

Applicants had until Dec. 16 to demonstrate they are active in the community through volunteerism and earn moderate incomes.

The five successful applicants chosen on Jan. 14 will contribute just 24 per cent or $2,500 of the down payment for the awarded unit with the remainder covered by the P3 players.

Some out of the box thinking is also enabling the town of Kindersley to accommodate a strong demand for a mix of rental housing, single detached homes, condos and townhouses.

The town has formed a P3 partnership with Marathon Properties in Regina to develop enough housing lots in Kindersley for an additional 3,000 residents over the next 10 years.

The first phase construction of 234 housing units will begin this spring.

The developer will provide all of the infrastructure and services. The town sold 115 acres for the development at market value. The town will also charge a development levy to fund additional infrastructure projects.

Once the lots are developed, they can be sold to other builders or to the customer directly.

The town also plans to pursue other opportunities with Saskatchewan Housing Corporation to

build more affordable housing for a variety of individuals and families.

The local housing crunch has spurred the development of two new hotels and two completed hotel expansions to meet the demand for temporary housing as oilfield activity picks up in the area.

In Kerrobert, Al-Sask Ventures Inc., an Albertabased developer plans to construct a much need 85-room hotel this spring and bring in a slew of modular homes on infill lots for rent.

Rentals properties are in high demand in that community with Torq Transloading Inc. planning to build a $100 million oil transloading facility southeast of town.

The 2 and 3 bedroom modular homes on order are affordable as shared accommodation with all the comforts of home.

Rental housing is ideal for the transient nature of the oil and gas industry and itâ&#x20AC;&#x2122;s a lower cost alternative to hotels for short term workers.

P3 partnerships are essential to providing a mix of affordable housing in Western Canada since the labour and material costs canâ&#x20AC;&#x2122;t be cut too much without compromising building codes.

A P3 partnership brings communities together to provide housing solutions for working families and individuals that are needed to drive the oil and gas industry and other sectors of the economy.

Give them shelter.

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One Womanâ&#x20AC;&#x2122;s Perspective on Life, Liberty and the Pursuit of Land Locations

By Nadine Elson Pipeline News editor, Brian Zinchuk, contacted me in his usual manner. He eschews phone, e-mail, fax and cell when communicating with me. Instead, he walked across the street and we chatted on the sidewalk, as I came back from walking my dogs. We are neighbours and this is how we always communicate. Face to face, with my dogs swirling around and his kids in the background, all competing for attention. â&#x20AC;&#x153;The next issue is about accommodations,â&#x20AC;? he informed me. â&#x20AC;&#x153;I figured you can write about that, with your rental background. Right?â&#x20AC;? he continued, referring to the other hat I wear. I am a landlord.

My husband and I own residential real estate.

Could I write about that? Seriously, did he need a book or a column?

I thought about my experiences being a landlord for the past 20 years and a hotel keeper before that. Maybe I should write a column about the characteristics needed for success. Lots of people think it is easy being in the rental business. But it is not. One needs the ability and willingness to fix nearly everything oneself.

A friend and realtor once told me once that he,

Accommodating people too, had entered the residential real estate rental business for a time. He soon sold his building because he had to â&#x20AC;&#x153;cheque-bookâ&#x20AC;? everything. He did not have the skills to fix the little stuff or the time, and had to contract everything out. That was simply not profitable over the long term. I donâ&#x20AC;&#x2122;t have that problem. I have Bruce, my husband, who can fix nearly anything.

Then I thought I should write about the time issues of being a landlord. A landlord cannot be away at the end of a month or beginning of a month. That is when people are moving out or in, and leases need to be signed and the state of the apartment noted on a checklist. Rents need to be collected, banking done, and bills paid. Cleaning often needs to be done between the leaving of one person and the moving in of another. I canâ&#x20AC;&#x2122;t remember how many late night or all-night cleaning marathons I have done because some pig, I mean person, left without cleaning up first.

I could write about the life skills the children of landlords obtain. Our kids were pressed into service as youngsters and teens. They knew how to operate a steam cleaner long before they operated a motor vehicle. â&#x20AC;&#x153;Why do we have to help?â&#x20AC;? my young son asked late one night. â&#x20AC;&#x153;Because it is our â&#x20AC;&#x2DC;family farm,â&#x20AC;&#x2122;â&#x20AC;? I replied.

Then I thought about the other problems of being a landlord. Perhaps I should I write about how we have renovated and painted so many apartments over the years, yet our own house needs work. There is inside painting to be done and new flooring to be installed, but it doesnâ&#x20AC;&#x2122;t get done like the apartments.

The scary thing is, after a while, I donâ&#x20AC;&#x2122;t even notice.

I could write about the all the unusual experiences that we have had as a result of being landlords. There was the time Bruce was fixing the

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plumbing underneath the kitchen sink in an apartment and the ferret climbed in for a closer look.

Up to that precise moment, he hadnâ&#x20AC;&#x2122;t realized there was, in fact, a ferret in that suite!

We have had messages delivered different ways.

I prefer the phone or mail. One fellow who, disgruntled at being evicted for drug use in a building that we have furnished rooms, left a really nasty message. It wasnâ&#x20AC;&#x2122;t quite a message in a bottle, but a message in a pail. He left an ice cream pail full of urine in the bed, hidden in the rumpled bedding. I sent him a message too. I kept his damage deposit!

I could write about the importance of written leases. One time Bruce noticed, on one of his rounds, that an apartment window was open. It was February in the middle of nasty cold snap, and we paid the heat in that building. He entered the apartment to close the window, an emergency situation to us. The tenants were upset that their cat couldnâ&#x20AC;&#x2122;t get fresh air! The fact that their written, signed lease prohibited pets did not seem to faze them, nor did the nearly $400 SaskEnergy bill we got soon after.

I think after considering all these points of view on being a landlord, I would write that it is a great way to meet people. As the rental business is really a people business, landlords need to be accommodating in more ways than just providing accommodation. That is the essential skill landlords need.

They need to be accommodating people. That and own a really good answering machine!

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

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*HDU GULOOLQJ LQ 0DLGVWRQH DUHD Calgary â&#x20AC;&#x201C; Gear Energy Ltd. isnâ&#x20AC;&#x2122;t wasting any time engaging its 55 net well drilling program in 2014 as part of its $70 million capital spending budget for the year.

The Calgary-based company activated two drilling rigs on Jan. 7 in the Maidstone where a nine well program in 2013 help grow area production from zero to 650 barrels of oil equivalent per day.

One rig is drilling the first heavy oil well of a five well horizontal pad in Maidstone.

The second rig is actively drilling a number of vertical wells targeting pool extension and low risk exploration opportunities.

The operational update on Jan. 14 follows Gearâ&#x20AC;&#x2122;s record production of approximately 4, 600 boepd in the fourth quarter of 2013 â&#x20AC;&#x201C; a significant increase from third quarter volumes of 3,940 boepd.

Gearâ&#x20AC;&#x2122;s December average production came in at the upper end of the companyâ&#x20AC;&#x2122;s 2013 guidance at approximately 5,000 boepd and liquids weighting increased to 95 per cent as a result of new oil production.

The companyâ&#x20AC;&#x2122;s field operations were able to successfully deliver these volumes despite severe winter weather which caused major challenges to the transportation of oil by truck and by rail.

Gearâ&#x20AC;&#x2122;s drilling operations for 2013 recessed on Dec. 16 and resumed in January with the Maidstone drilling.

Their new field activities come during a much improved price outlook for heavy oil for 2104 with the differential currently trading at approximately US$19 per barrel.

Fourth quarter 2013 differentials were approximately US$32 per barrel primarily due to North American pipeline and refinery constraints.

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Duvall says the new design for the projects at Edam and Vawn will be based on the design used at Pikes Peak South.

North Battleford reaction North Battleford city council greeted the Husky Energy projects in Edam and Vawn with enthusiasm at a meeting Jan. 13. Councillor Greg Lightfoot said the announcement will spur on some development in North Battleford. â&#x20AC;&#x153;The recent announcement by Husky Oil just to the north of us, within half an hour drive, I think will bode well for definitely some commercial and probably some residential projects in the future,â&#x20AC;? said Lightfoot.

The news was also greeted with enthusiasm at the regular meeting of the Battlefords Chamber of Commerce board of directors on Jan. 14. At that meeting, councilâ&#x20AC;&#x2122;s representative on the board, Ryan Bater, acknowledged the impact of the new project could be taken into consideration in the official community plan, which is coming back to council this month. â&#x20AC;&#x153;I donâ&#x20AC;&#x2122;t think that announcementâ&#x20AC;&#x2122;s got nearly as much attention as it deserves,â&#x20AC;? said Bater, who called it a â&#x20AC;&#x153;big project right next door.â&#x20AC;?

He also pointed to the good news announced before council Monday that Walmart was expanding to include a new grocery store. â&#x20AC;&#x153;I would suggest those kind of things donâ&#x20AC;&#x2122;t happen unless developments like Husky happen,â&#x20AC;? said Bater.

Jayâ&#x20AC;&#x2122;s Welding Ltd.

Â&#x201E; Page A4 Husky plans to further integrating its heavy oil business by taking advantage of its Lloydminster Upgrader, existing pipeline systems and the proposed crude oil flexibility project at the Lima, Ohio refinery.

Husky is confident it is able to maximize the value realized for its heavy oil production through a focused integration approach.

Job creation Mel Duvall, manager of media at Husky Energy, Inc., said some job creation can be expected with the two projects.

Both projects are to be completed in 2016 and will â&#x20AC;&#x153;create 20 full-time jobs, so 40 between the two,â&#x20AC;? said Duvall.

Some additional support jobs are expected to be created as well.

During construction, it is expected â&#x20AC;&#x153;each plant will peak at around 400, but weâ&#x20AC;&#x2122;ll never have 800 people there at one time. Weâ&#x20AC;&#x2122;ll be staggering the work between the two plants so we wonâ&#x20AC;&#x2122;t have that many people out there.â&#x20AC;?

The plan is for the finished projects to use thermal energy to bring oil up from under the ground.

He described it as â&#x20AC;&#x153;very similar to the steam-assisted drainage projects you see going on in the oil sands, except on a small scale.â&#x20AC;?

He said Huskyâ&#x20AC;&#x2122;s Sunrise project produces 60,000 barrels per day and using SAGD. It wouldnâ&#x20AC;&#x2122;t be quite correct to call the technology typical of what they do, Duvall says, as â&#x20AC;&#x153;itâ&#x20AC;&#x2122;s a fairly new technology that weâ&#x20AC;&#x2122;ve been able to put to use in the Lloydminster region.â&#x20AC;? â&#x20AC;&#x153;Most of the production thatâ&#x20AC;&#x2122;s been done there has used conventional methods over the years,â&#x20AC;? said Duvall. But, over the last five or six yearâ&#x20AC;&#x2122;s â&#x20AC;&#x153;weâ&#x20AC;&#x2122;ve really been able to see the benefits of using this thermal technology to get at some of the resources that are there.â&#x20AC;?

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â&#x20AC;&#x153;There is no reason why anybody in Canada should be buying foreign oil.â&#x20AC;?

- Employment Minister Jason Kenney, referring to the proposed Energy East pipeline Éş Page A5 The program would allow businesses to apply for a $5,000 federal grant to train an unemployed or underemployed Canadian for an existing or better job.

Under the plan, both employers and the

provinces and territories would be required to match the funding, for a total of up to $15,000 per employee.

While some provinces and territories fear the plan would come at the expense of marginalized work-

ers, the existing plan that combines federal and provincial funds to provide a full range of employment programs is not on the table.

The federal government must negotiate a new Labour Market Agreement with the

provinces and territories

by March. â&#x20AC;&#x153;We are getting more skilled people from abroad coming here, but we need more skilled Canadians coming here as well,â&#x20AC;? said Kenney. â&#x20AC;&#x153;Obviously, we need

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to remove disincentives for people to work and thatâ&#x20AC;&#x2122;s why we reformed the employment insurance program reminding people they have an obligation to seek and accept available work.â&#x20AC;?

Kenney said oil and gas companies should also expect to see more skilled workers from the United States coming to Canada for jobs in 2014. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;ve actually brought in a special labour market opinion exemption for skilled tradesmen in high demand occupations like pipefitters and boiler makers, electricians, carpenters heavy equipment operators and the like,â&#x20AC;? he said. â&#x20AC;&#x153;We did that because businesses in the oil and gas sector said they wanted to recruit people out of the U.S. Thatâ&#x20AC;&#x2122;s what weâ&#x20AC;&#x2122;re trying to do.â&#x20AC;?

Kenney said if TransCanada Corporationâ&#x20AC;&#x2122;s Energy East pipeline is built, the employment benefits in Eastern Canada would be huge. â&#x20AC;&#x153;I was meeting with Irving Oil in New Brunswick recently.

They would be looking

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a massive expansion of their refinery, perhaps building a new refinery in St. John,â&#x20AC;? said Kenney. â&#x20AC;&#x153;They are facing a skills challenge as well.

Theyâ&#x20AC;&#x2122;ve been losing a lot of their young trades people to Alberta and Saskatchewan. â&#x20AC;&#x153;They may need them if in fact Energy East takes off. We hope it does. We want to see Atlantic Canada benefit from oil and gas as well. â&#x20AC;&#x153;There is no reason why anybody in Canada should be buying foreign oil.â&#x20AC;?

Irving Oil has built 145,000 barrels per day of rail off-loading capacity at its refinery in St. John, N.B., over the last two years.

The company recently announced plans to add 40,000 bpd of rail loading capacity for heavy crude in Alberta, in conjunction with Kinder Morgan and Keyera Corp.

Kinder Morgan recently filed an application with the National Energy Board to twin its Trans Mountain crude oil pipeline from Edmonton to Burnaby B.C.

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6WULFWHU IRUHLJQ ZRUNHU UXOHV LQ HIIHFW Employment Minister Jason Kenney met with provinces in November to discuss regulatory changes, but Saskatchewan and Alberta have been quietly urging the government for months to ease up on the restrictions.

Saskatchewan Premier Brad Wall even made a face-to-face appeal to Prime Minister Stephen Harper on the issue in November.

Both provinces say their booming economies need the type of skilled workers that arenâ&#x20AC;&#x2122;t readily available in Canada due to a skills shortage.

Employment Minister Jason Kenney told Pipeline News that the oilfield supply companies and manufacturers he toured in Lloydminster on Dec. 18 are facing labour challenges. â&#x20AC;&#x153;I am hearing the same thing I did the last time I was in Lloydminster. It is all about labour shortages,â&#x20AC;? said Kenney who attended a Conservative Party function at the Lloydminster Exhibition Grounds. â&#x20AC;&#x153;In this part of the country itâ&#x20AC;&#x2122;s a good problem to have. Itâ&#x20AC;&#x2122;s a good problem of more growth than there are people to fill the jobs. â&#x20AC;&#x153;I said when I got this job as the employment minister my first task was to end the paradox of too many Canadians without jobs in an economy that has too many jobs than workers. â&#x20AC;&#x153;Right here is Lloydminster is ground zero for that problem.â&#x20AC;?

Kenney believes more Canadians will be available to fill needed jobs in the oil and gas and manufacturing sectors out west by breaking down provincial barriers to labour mobility.

He said Ottawa and the provinces are working to provide mutual recognition of credentials for trades and professions.

Progress is also being made to harmonize apprenticeship training in Canada.

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â&#x20AC;&#x153;We are getting more skilled people from abroad coming here, but we need more skilled Canadians coming here as well,â&#x20AC;? said Kenney. â&#x20AC;&#x153;Obviously, we need to remove disincentives for people to work and thatâ&#x20AC;&#x2122;s why we reformed the employment insurance program reminding people they have an obligation to seek and accept available work.â&#x20AC;?

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Lloydminster â&#x20AC;&#x201C; Oil and gas companies in Western Canada have to brush up on new federal regulations that tighten rules on hiring temporary foreign workers.

The regulations empower federal government officials to conduct workplace inspections without warrants and to blacklist employers who break the rules of the Temporary Foreign Worker Program.

The regulations also allow government officials to interview foreign workers about their working conditions and to demand documentation from employers proving theyâ&#x20AC;&#x2122;ve complied with the foreign worker program.

Federal official can conduct workplace inspections for a period of six years, dated from the first day of employment of a foreign worker.

Work permits will be revoked if an employer is discovered to have provided false information that â&#x20AC;&#x153;is having or will have a significant negative effect on the labour market in Canada,â&#x20AC;? state the rules.

The new requirements for hiring temporary foreign workers went into effect on Dec. 31 and will help to ensure foreigners donâ&#x20AC;&#x2122;t take jobs from Canadians.

Fears of foreigners taking jobs away from Canadians came to light last spring with reports that laid-off RBC bank workers were told to train their replacements including overseas workers with temporary work permits.

The new rules eliminate the provision that allowed companies to pay temporary foreign workers 15 per cent less than the going rate for any given position as long as the employer had paid Canadians that lower rate as well.

Companies are also required to pay a $275 fee to apply for a TFW permit, and employers must prove theyâ&#x20AC;&#x2122;d made every effort to fill job openings with Canadians before turning to foreign workers.

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Online auctions for freehold mineral rights Â&#x201E; By Brian Zinchuk Regina â&#x20AC;&#x201C; How do you really know what something is worth? Generally speaking, right after someone else has slapped down the money to pay for it. If no one is willing to buy it, it may not be worth anything.

But how do you know if you got the maximum value? What if there were someone else in the woodwork that might have paid more for your item, if only they had known it was for sale? How would you know? Would you ever know?

These are very real questions for freehold mineral right holders when it comes to leasing out their land. Generally speaking, land agencies or resource companies will approach them and make an offer on the land they are interested in. However, most energy companies keep valuation pretty close to the chest, which is why they use third-party land agencies in the first place. A mineral rights owner might get entreaties from one company, or half a dozen.

The decision of who to lease to can be worth thousands, possibly millions, of dollars, in the long run, depending on the quality and quantity of the resource developed. Then again, that land may never be developed, and all the rights holder might get is the bonus payment and no royalties.

This is a very real concern. From the provincial government perspective, historically 80 per cent of crown land leased is not developed and returned to the province at the end of the lease period.

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Getting the maximum value for those mineral rights is the idea behind MineralRights.ca, a new Regina-based start-up firm which is launching its operations this February. Cameron Wyatt, a petroleum engineer who has worked in that field in Saskatchewan, is the man behind the initiative.

His tagline for MineralRights.ca is â&#x20AC;&#x153;Re-invented,â&#x20AC;? and if successful, that could very well be the case. Wyatt is proposing another source for how freehold mineral rights are acquired in Canada. Instead of dealing with multiple land agents at the kitchen table, he wants to publicize freehold mineral rights on his website, host an auction, and may the highest bidder win.

Wyatt has been in the oilpatch all his life. He grew up on a farm near Kisbey, which has since become the part of the Bakken play. He operated wells for NorthRock Resources near Kisbey. His father, Doug Wyatt, owns and operates Wyatt Trucking. Cameron Wyatt has worked as a petroleum engineer and recently struck out on his own in December.

Pipeline News spoke to Wyatt in Regina on Jan. 14. His intention at that time was to have the entire website up and running by Feb. 1, Phase one is currently available.

Wyatt called it â&#x20AC;&#x153;a web-based platform connecting mineral rights owners with resource companies for the leasing of their mineral rights. MineralRights. ca is an additional source of deal-flow for both mineral right owners and resource companies as well as socially responsible way of doing business.â&#x20AC;?

About 95 per cent of that would be oil and gas related, but thereâ&#x20AC;&#x2122;s potential for coal, diamonds, or â&#x20AC;&#x153;anything mineral rights oriented.â&#x20AC;?

In the past, friends have leased out land and then asked Wyatt how they did. He believed they got a lot less than his viewpoint of fair market value. â&#x20AC;&#x153;Iâ&#x20AC;&#x2122;ll die without saying who that was, but that happened. Thatâ&#x20AC;&#x2122;s what gave me the idea.â&#x20AC;?

That idea is to use an online auction format. Think of it as a type of eBay for freehold mineral rights.

The provincial government already follows something of a similar nature.

Companies interested in bidding on land for exploratory permits or lease ask that the land be posted for auction. The Ministry of the Economy then posts the land and receives silent bids. When the auction is closed, the highest bid wins. Each participant only enters one bid per property.

These land sales are held every two months.

In most cases, there is a veil of secrecy in that the resource companies use third party agencies, land agencies, to bid on their behalf. For example, the December press release from the Ministry of the Economy stated, â&#x20AC;&#x153;The highest price paid for a single parcel was $908,448. Plunkett Resources Ltd. acquired the 259-hectare lease east of Estevan. The highest price on a per-hectare basis was $6,189. Scott Land & Lease Ltd. bid $801,459 for a 129.5-hectare lease south of Maidstone.â&#x20AC;? ɸ Page A13

707,305, 5,>: -LIY\HY`

companies bidding. â&#x20AC;&#x153;Royalties are a large factor to determining fair market value and each educated individual or resource company values mineral rights differently; thatâ&#x20AC;&#x2122;s what makes the oil and gas sector so intriguing. In the past, mineral right royalties have leased anywhere from 14 per cent to upwards of 20 per cent and ultimately itâ&#x20AC;&#x2122;s up to the resource company to determine what they believe is a fair royalty payment for the area,â&#x20AC;? Wyatt said.

As for term, all things being equal, a bid that has a shorter term will beat out a longer term. Three years is a â&#x20AC;&#x153;good term,â&#x20AC;? he said, but there really isnâ&#x20AC;&#x2122;t a typical length, according to Wyatt. In this bidding process, a two year term will beat a three-year term.

MineralRights.ca has developed an intelligent multi-variable algorithm to assist the auction in the bidding process and determining which of the above factors improve the â&#x20AC;&#x153;net benefit.â&#x20AC;?

The process Letâ&#x20AC;&#x2122;s say youâ&#x20AC;&#x2122;re a mineral rights owner. A seismic crew has just gone through your land, so something is up. Now what? ɸ Page A14

Ä&#x201A;ĹľÄ&#x17E;Ć&#x152;ŽŜ tÇ&#x2021;Ä&#x201A;ĆŠ Ĺ?Ć? Ä&#x201A; WÄ&#x17E;Ć&#x161;Ć&#x152;ŽůÄ&#x17E;ƾž ĹśĹ?Ĺ?ĹśÄ&#x17E;Ä&#x17E;Ć&#x152; Ć?Ä&#x17E;Ä&#x17E;ĹŹĹ?ĹśĹ? Ć&#x161;Ĺ˝ Ć&#x2030;Ć&#x152;Ĺ˝Ç&#x20AC;Ĺ?Ä&#x161;Ä&#x17E; ĹľĹ?ĹśÄ&#x17E;Ć&#x152;Ä&#x201A;ĹŻ Ć&#x152;Ĺ?Ĺ?Ĺ&#x161;Ć&#x161; Ĺ˝Ç ĹśÄ&#x17E;Ć&#x152;Ć? Ç Ĺ?Ć&#x161;Ĺ&#x161; Ä&#x201A;Ä&#x161;Ä&#x161;Ĺ?Ć&#x;ŽŜÄ&#x201A;ĹŻ Ĺ˝Ć&#x2030;Ć&#x;ŽŜĆ? ĨŽĆ&#x152; ĹŻÄ&#x17E;Ä&#x201A;Ć?Ĺ?ĹśĹ? Ć&#x161;Ĺ&#x161;Ä&#x17E;Ĺ?Ć&#x152; ĨĆ&#x152;Ä&#x17E;Ä&#x17E;Ĺ&#x161;ŽůÄ&#x161; ĹľĹ?ĹśÄ&#x17E;Ć&#x152;Ä&#x201A;ĹŻ Ć&#x152;Ĺ?Ĺ?Ĺ&#x161;Ć&#x161;Ć?Í&#x2DC; Photo by Brian Zinchuk

Éş Page A12 Crown land sales use a fixed length of time for their leases, and royalty rates are set by the province.

Freehold mineral leases can be all over the map, but generally are in one-year increments from the date the lease is signed, according to Wyatt. Therefore lease time is factored into the weighting of a bid.

There are three variables that will be considered in a MineralRights.ca bid: 1. Bonus payment (dollars per acre) 2. Royalty rate.

3. Term, detailed in years For some people, the bonus paid up front is key.

For others, the ongoing royalty payment is more important. For that reason, mineral right owners will have the opportunity to choose which variables are most important to them and MineralRights. ca will assist them in detailing that to the resource

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How do you know if you got the best value? Éş Page A13 Do you wait for the land agents to start showing up? Will the second one have a better offer than the first? Will there be a third? Or a fourth? What if you only get one offer? And do you start hearing â&#x20AC;&#x153;Oh listen to a story about a man named Jed, a poor mountaineer, barely kept his family fed. Then one day he was shootinâ&#x20AC;&#x2122; at some food, anâ&#x20AC;&#x2122; up through the ground came a-bubblinâ&#x20AC;&#x2122; crude?â&#x20AC;? in your head?

Wyatt said, â&#x20AC;&#x153;If a freehold mineral rights owner gets any activity, their first question is, what is it worth?â&#x20AC;?

That activity could be seismic work, or a call from a land or resource company.

Freehold minerals are never valued exactly the same, he noted. A few hundred feet can mean the difference between there being oil, or a duster. Geology, past successes and failures, size (acres), nearby production, current oil prices and a lot of other elements are all factored into an offer.

So how does it work? First, the mineral rights owner signs up to the website.

Second, they add their parcels to the exclusive owner portal. There is a one-year exclusive contrac-

WHERE ENERGY MEETS SAFETY

tual obligation with MineralRights.ca.

Third, in co-operation with MineralRights.ca; the mineral rights owner includes any conditions and sets a reserve bid for all three criteriaâ&#x20AC;&#x2122;s â&#x20AC;&#x201C; bonus, royalty and term.

Fourth, the auction is held.

Bidding is done through a manual or automated bidding process. Bids are open for four days, and participants can increase their bids if they so choose. This is similar to other online auction sites.

And like those sites, Wyatt expects most bids to come in on the last day.

Only qualified bidders are allowed to participate. While the mineral rights owner can monitor the auction, the general public cannot.

Fifth, the deal is concluded, and the resource company dispatches a contracted land agent or their own to conclude the lease. The legal process is expected to take seven to 10 days.

Portal â&#x20AC;&#x153;Iâ&#x20AC;&#x2122;m creating an exclusive web portal for mineral rights owners to sign onto. They can upload documentation and past leases,â&#x20AC;? he said. That information is private and exclusive to the rights owner,

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but will allow the mineral rights owner to keep track of varying leases on numerous properties. This service is also free to use and Wyatt promotes individuals to sign up and use the service even if they donâ&#x20AC;&#x2122;t want to immediately host an auction. â&#x20AC;&#x153;Bob canâ&#x20AC;&#x2122;t look at your lease. The information is exclusive to you,â&#x20AC;? Wyatt said, describing it as a private database.

Rights owners will be able to host their own auction. MineralRights.ca will inform land companies and resource companies about upcoming auctions in an effort to entice the most bids.

A successful auction results in a five per cent commission on the bonus amount, but not the royalty. There is no commission on ongoing royalties, mineral right owners keep 100 per cent of their royalties.

Research on neighbouring land and an opinion of fair market value will be offered on fee-forservice basis, if the mineral rights owner chooses.

It will not look into other freehold mineral rights signed, as that would be a conflict of interest. â&#x20AC;&#x153;Iâ&#x20AC;&#x2122;m providing geological and engineering technical support to freehold mineral rights owners and resource companies to assist in obtaining fair market value,â&#x20AC;? Wyatt said. â&#x20AC;&#x153;Iâ&#x20AC;&#x2122;ll be commencing my marketing plan in southeast Saskatchewan and southwest Manitoba; with the intent to grow into western Saskatchewan, Alberta and B.C. in the near future. â&#x20AC;&#x153;My process achieves three things: First, it obtains fair market value for the mineral rights owner through a price discovery mechanism, i.e. a mineral right auction. â&#x20AC;&#x153;Mineral rights are worth what resource companies are willing to pay. That is what your fair market value is. ɸ Page A15

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707,305, 5,>: -LIY\HY` Éş Page A14 â&#x20AC;&#x153;Secondly there is transparency on the availability of freehold mineral rights for the resource company. When a freehold mineral rights owner signs up, I go to the resource companies and say parcel XYZ is now available.â&#x20AC;?

This allows mineral rights owners to become active participants in the process, as opposed to passive participants waiting for a visit from a resource company or land agent.

Typically mineral rights owners donâ&#x20AC;&#x2122;t have anyone representing them on a technical basis, he noted. â&#x20AC;&#x153;If an owner wants us to go to that stage, we definitely can.â&#x20AC;?

Regional maps can be provided, along with production analysis and land analysis. Since the Crown owns the minerals on every second section of land in a checkerboard pattern, nearby Crown land can be analyzed.

Technical analysis can also include building cross sections of formations, industry activity reports and engineering reports. This can be along the lines of â&#x20AC;&#x153;Joe Company is drilling here, and Pete Company is drilling there or the well across the fence line has produced X cubic metres of production.â&#x20AC;? â&#x20AC;&#x153;Thirdly, there is a reduced transaction cost,â&#x20AC;?

Wyatt said. In the typical kitchen table negotiation,

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there are costs in the negotiation process. â&#x20AC;&#x153;Iâ&#x20AC;&#x2122;m eliminating the negotiation. Thereâ&#x20AC;&#x2122;s a cost to negotiating, and thereâ&#x20AC;&#x2122;s a cost to the mineral rights owner on haggling. Thatâ&#x20AC;&#x2122;s gone,â&#x20AC;?

Big picture â&#x20AC;&#x153;Iâ&#x20AC;&#x2122;m extremely excited to help with the mineral rights process. The new process will provide fair market value to the mineral rights owners and additional deal-flow for the resource companies.

The current freehold process has successfully been in place for decades, I am just adding another layer and option for willing participants.â&#x20AC;? Wyatt said.

Heâ&#x20AC;&#x2122;s already got individuals interested in taking part in auctions as early as February.

Muskeg work is unappealing at best, deadly at worst Â&#x201E; By Brian Zinchuk Chinchaga River, Alta. â&#x20AC;&#x201C; In February and March of 2003 I did my first, and so far, last camp job.

Since our focus this month is on accommodations, that experience provides a good contrast to what is available today. In light of the extremely hostile reaction by local landowners to a proposed camp west of Estevan last fall, I thought there are many myths that need to be dispelled. Hopefully this series of stories will rectify that.

At the time I had been working as an excavator operator. I spent several years as an oiler, or apprentice, on large pipeline projects for Enbridge, TransCanada and Alliance. With the completion of the Alliance Pipeline, big-inch work dried up, and it was time to find small-inch work.

I â&#x20AC;&#x153;broke outâ&#x20AC;? as an operator, and took two spring sessions with the Operating Engineers Training Institute of Saskatchewan, leading to a Level 2 (of 2) apprenticeship. I was 1,000 hours and a test short of my journeyman papers as a pipeline equipment operator (excavator) by the summer of 2003.

Living in North Battleford at the time, unfortunately there was very little excavator work in the area. There was one contractor that did oilfield work, but I had been laid off from them due to lack of available work. Thus it was time to take out the Canadian Oilfield Service and Supply directory, turning to the pipeline contractor pages.

Usually one could find work through this manner; it was just a function of how far you were willing to travel. In this case, it was February; I didnâ&#x20AC;&#x2122;t have steady work since the fall when the sewer and water contractor I spent the second half of 2002 working for shut down. I was sick of EI and really needed to get back on a machine.

When it comes to dirt workers in the pipeline field, there are generally two types: the first are those who move to a community where thereâ&#x20AC;&#x2122;s work, set up permanent residence, go out in the field and sleep in their own bed at night. This is common in southeast Saskatchewan and in other areas where there is a lot of regular work. But then there are the hired guns, as it were, who live out of

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campers or camps, going wherever there is work, and hopefully decent subsistence pay. I was the latter.

I had been reluctant to seek camp work. Generally it was in northern Alberta, doing winter work.

The reason this work was done after freeze-up was because that was the only time you could work in the vast muskeg areas of the province. Every year one would hear stories or see pictures of an excavator or dozer that broke through the ice, sometimes with only the tip of the boom arm sticking up.

Thereâ&#x20AC;&#x2122;s a reason the back window or top hatch

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of the excavator is the â&#x20AC;&#x153;escape hatch.â&#x20AC;? Some made it, some didnâ&#x20AC;&#x2122;t. I canâ&#x20AC;&#x2122;t swim, never mind the idea of having to bail out of an excavator in heavy winter clothes into freezing water. Thus, I was not enthusiastic about taking on this work, but bills had to be paid, so I took my chances and went.

The contractor was installing a small-inch gathering system near the Chinchaga River. It was almost as far northwest in Alberta you could go, with the exception of Zama Lake, and still be in Alberta. ɸ Page A17

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.LQJ FUDE DV PXFK DV \RX FRXOG HDW Â&#x201E; Page A15 The camp was about an hour northwest of Manning, Alta. I had worked in Dawson Creek, B.C. in 1999, but this was even further away from home. When my 1982 Ford camper vanâ&#x20AC;&#x2122;s alternator broke down just after I passed through Manning, the parts guy at the Ford dealer scoffed at me when I asked for a V-belt for a 351 engine. â&#x20AC;&#x153;What are you doing driving such an old vehicle up here?â&#x20AC;? he asked, implying unreliable vehicles didnâ&#x20AC;&#x2122;t cut it in that area. â&#x20AC;&#x153;No one drives something that old in northern Alberta.â&#x20AC;?

The camp itself was about three-quarters of an hour drive off the highway through rolling bush country. Pulling into the site, I had my first opportunity to lay eyes on just what a camp is.

I donâ&#x20AC;&#x2122;t know who the camp provider was, but my understanding is this was rather typical of what was offered at the time.

There was a marshalling yard at one end, where the heavy trucks drove in and out loading equipment. The other end was the way out to the rightof-way. There was a very large, very loud generator providing power to the entire site. A trailer complex acted as offices. Then there were a few dormitories, each of which was I believe six units joined into one with a hallway down the middle. The dormitories, rec area and kitchen were all stand-alone, which meant you had to put on your boots and jacket to go from one to the other. In a frigid late February, this was not a lot of fun when one sought out breakfast.

In the centre of the dormitory was a washroom facility, with several toilets, showers and urinals.

There was a sign on the showers that stuck with me â&#x20AC;&#x153;Do not blow your nose in the shower.â&#x20AC;? Ew. Not knowing better, I did not have flip-flops for shower shoes. I had to make do without.

The room itself was okay. There was a twin bed, a small desk, and a wardrobe which you could lock.

That was it. No TV, no DVD player, no Internet, no phone.

Early in my pipeline career I realized working away from home could be incredibly boring in the off-hours, so I always took my portable satellite dish, its receiver, and 13 inch TV/VCR. Iâ&#x20AC;&#x2122;m sure they wouldnâ&#x20AC;&#x2122;t want me setting up my own dish, I thought, so this one time I left it at home. That was a mistake. I soon saw that every room had a wire going out the window to a dish mounted outside.

These were private dishes, not camp-provided. Sure, there was a TV in the rec room, but my viewing tastes differed substantially from what the other guys usually had on, so I never bothered spending time there.

What did I have for entertainment? Not much.

I had my old, beat-up laptop and a few disks. I had some MP3 files loaded on it for music, but only about 60 songs. This was before the days of iPods, with their libraries thousands of songs long. There was no Internet, not even e-mail. Texting at the time did not exist, and even if it did, you couldnâ&#x20AC;&#x2122;t get a signal. Essentially I was cut off from the outside world for a month.

I donâ&#x20AC;&#x2122;t recall there even being a public phone.

There may have been one, but I didnâ&#x20AC;&#x2122;t know about it. The only way I could get a call out on my cellphone was to park my excavator on the top of a hill at lunchtime. I would then have to climb on top of the engine cover to get one or two bars of signal

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strength. It was just enough to talk to my wife for a couple minutes to tell her Iâ&#x20AC;&#x2122;m alive, and it was damned cold out.

After a few weeks, the loneliness and separation started to really get to me. This was unlike all my previous pipeline work, where I would rack up enormous cell phone bills to my wife, family and friends.

I was in the bush, cold and alone â&#x20AC;&#x201C; as alone as you can be with a few hundred people you didnâ&#x20AC;&#x2122;t know.

A few days in I realized my plug-in alarm clock was useless. I deduced the generator was at fault. On grid power, alternating currentâ&#x20AC;&#x2122;s waveform is set at precisely 60 cycles per second, or hertz. All electric clocks are based on this assumption. Â&#x201E; Page A18

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The end of 100 days of hell in northern Alberta Éş Page A17 But if the generator was not putting out a perfect 60, and say put out 55 instead, the lights would still be on, by my clock would not be accurate. In one night, it could be out as much as an hour. Since sleeping in was a good reason for being sent home, this

was a constant worry. It also made me wonder if I was going to fry my laptop as a result.

The food was pretty good. There was a varied menu, and a wide variety of items to make up your bag lunch in the morning. Breakfast was hearty, but didnâ&#x20AC;&#x2122;t change a lot.

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bacon, sausage, toast, pancakes, etc. There wasnâ&#x20AC;&#x2122;t a lot of room to sit at busy times, however.

As for supper, I think there was some sort of weekly schedule, i.e. steak on Thursdays.

The food was good, and plentiful, but after nearly a month, I grew a little tired of it.

There was one day that was special, however.

Near the end of the job, for some reason they served Alaskan king crab. I had never seen it before, although I had heard of it. Someone said a bigwig from Husky was down, and thatâ&#x20AC;&#x2122;s why we were getting the crab, as much as we could eat. Guys were stacking them six-high on their plates, literally nine inches tall. I had never seen anyone do something like that, so I figured it must be good.

It was, and is now one of my favourite dishes for special occasions like anniversaries and New Years. Once I bought king crab myself, I got an idea of how much money was spent on that meal for us. Thank you Husky bigwig, whoever you were.

I think it was a dry camp. If there was alcohol, I never saw it, nor was I offered any. Since I was a bit of a hermit,

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thatâ&#x20AC;&#x2122;s no surprise, either.

As for those myths I spoke of earlier, I did not encounter any druggies or drunks or child molesters. If they existed, I never knew it.

Job wise I wasnâ&#x20AC;&#x2122;t all that great. I was new to this type of work, and I think it showed. I did the best I could though, and I didnâ&#x20AC;&#x2122;t get sent home until the job wrapped up.

Skidding on a side slope with an excavator is not fun, I will tell you that.

As for actual muskeg work, I spent very little time on it, probably because I was one of the least experienced operators on the job. That was a blessing. It was enough to walk my excavator past the other guys for me to want to avoid it in the future. Digging through the couple feet of ice that is holding up your machine freaked me right out.

They call it the 100-days of hell, the period from New Yearâ&#x20AC;&#x2122;s Day to spring break-up, and I believe it. The job was wrapping up around March 23, one way or the other. When the big melt came, that would be it. There was a big push to get one more wells tied in here, and another there. Could they get the equipment all out and across the river before the ice bridge became too thin? That last week those were day-by-day, hour-by-hour questions.

When the job came to a close, there was relief on my face as I sat in the back seat of the crew cab, crossing that ice bridge. It would only last

a couple more days, and I was glad to never have to cross it again. I missed my wife, I missed my own bed, and I wanted to go home. For the guys who had been there for much of the winter, I imagine those emotions were felt ten-fold.

The trip out was not at all fun. I stayed one last night so I could leave in morning when the sun came up. The melting and freezing had made the road out treacherous at best, according to the truckers. It was one solid ice sheet all the way to the highway.

This was one of the few times I put the chains on the tires of my van. Top heavy and with a lot of weight in the back, on glare ice it was just plain dangerous. I survived working on muskeg and slippery hills, and I would be damned if I was going to roll my van on the way out. The chains were most definitely needed.

Removing the chains once I reached the highway was a relief, but I still had 1,000 kilometres of driving ahead of me.

People donâ&#x20AC;&#x2122;t work so far away from home for the fun of it, I found.

They do it because they have little other choice.

With a monthâ&#x20AC;&#x2122;s pay in the bank and nowhere to spend it, we could pay the bills until my next job away from home â&#x20AC;&#x201C; that June in Brooks, Alta.

By July, those days were done, and I was working with the Battlefords News-Optimist. My days of camp work were over soon after they started.

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0DQXIDFWXUHG KRXVLQJ FDQ PDNH D ORW RI VHQVH Weyburn â&#x20AC;&#x201C; In an overheated housing market, or one where building trades are all but impossible to obtain the services of, manufactured housing can make a lot of sense.

Those have been some of the driving forces behind the growth of Weyburn-based Minardâ&#x20AC;&#x2122;s Steadfast Homes. The division of Minardâ&#x20AC;&#x2122;s Leisure World is in their sixth year in business, but this last year has been a standout one.

Thatâ&#x20AC;&#x2122;s because in August they moved to their new location, across the highway from the Co-op truck stop on the west side of Weyburn. Itâ&#x20AC;&#x2122;s an ideal site, since it was initially prepared in 2009 for the short-lived PTI Weyburn Lodge. Thereâ&#x20AC;&#x2122;s plenty of flat, gravelled land on which to display manufactured homes.

Lloyd Montgomery is manager of Steadfast Homes. A life-long resident of Weyburn, heâ&#x20AC;&#x2122;s glad to see the recent growth of the city. For much of his life, it was pretty sleepy. â&#x20AC;&#x153;In 2007-08-09, no one was ready for what was going to happen,â&#x20AC;? he said.

Weyburn went from a housing market whose prices were undervalued, well below replacement cost, to one where prices have shot up and units are in continual short supply. Manufactured housing helps make housing more attainable. â&#x20AC;&#x153;We offer a full spectrum of manufactured homes,â&#x20AC;? he said. That includes â&#x20AC;&#x153;single-wideâ&#x20AC;? homes 16, 20, 22 or 24 feet in width, modular homes and readyto-move (RTM) homes.

Modular homes are typically done in two pieces, whereas an RTM is a conventional house that is typically moved in its entirety to a prepared basement or foundation.

Housing availability has been a huge problem in Weyburn, but it has improved, he noted. â&#x20AC;&#x153;Most of our homes are going to rural or smaller communities,â&#x20AC;? he said. Some are going to companies who are buying staff housing. There are also multiunit packages for workers.

One single-wide design is 16 by 62 feet, with two bathrooms and two bedrooms that is ideal for the oilpatch. Clients will buy the unit and rent out the second room. And they are affordable. One can be bought for less than a fully decked-out pickup truck.

Montgomery estimates that 40 to 50 per cent, and perhaps more, of their business is oilpatch-related.

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When there is little to now rental housing to be had, manufactured housing becomes a real option. â&#x20AC;&#x153;There isnâ&#x20AC;&#x2122;t the rental accommodations out there.

People are needing to buy, and not everyone can enter the market at half a million dollars.â&#x20AC;?

There is some baggage with manufactured homes, Montgomery noted, but he added, â&#x20AC;&#x153;Theyâ&#x20AC;&#x2122;re not what they used to be. Now weâ&#x20AC;&#x2122;ve got two-by-six walls, lowE windows, Gyproc interiors and high-efficiency furnaces. Most have cathedral ceilings. Lots are decked out in hardwood. â&#x20AC;&#x153;We are finding manufactured housing, newer product, absolutely appreciates (in value).â&#x20AC;?

Steadfast Homes draws from two suppliers. The first is in Minnesota. The second, Triple M Housing from Lethbridge, Alta., was added last spring. â&#x20AC;&#x153;They have a state-of-the-art new factory,â&#x20AC;? he said. â&#x20AC;&#x153;They build from 16-foot to RTM.â&#x20AC;?

Another issue has been the availability of building trades. With so much work in larger centres, it can be nigh onto impossible to get contractors to stick-build a home in a small town or on a farm. â&#x20AC;&#x153;To get someone to frame a house in the Minton area would be virtually impossible,â&#x20AC;? Montgomery said.

As a result, maybe 60 per cent of their RTMs go to farms and acreages.

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A night at Boundary Lodge

Joshua Schielke, Chef

Â&#x201E; By Brian Zinchuk Estevan â&#x20AC;&#x201C; â&#x20AC;&#x153;Do you want to eat before you go?â&#x20AC;? my wife asked. â&#x20AC;&#x153;No, Iâ&#x20AC;&#x2122;m going to write a story about supper,â&#x20AC;? I replied. â&#x20AC;&#x153;Did you pack a towel?â&#x20AC;? â&#x20AC;&#x153;No, they have that.â&#x20AC;? â&#x20AC;&#x153;Are you taking a sleeping bag?â&#x20AC;? â&#x20AC;&#x153;No, they have bedding.â&#x20AC;? â&#x20AC;&#x153;Well, dang, Iâ&#x20AC;&#x2122;m going with you then,â&#x20AC;? my wife concluded.

I was packing up to spend a night in southeast Saskatchewanâ&#x20AC;&#x2122;s newest camp, the PTI Group Boundary Lodge, just northeast of Estevan, but no, my wife would not be going with me.

Just what is a camp, and what is it like to stay at one? Who are these people who stay there or work there? These are just some of the questions this series of stories on Boundary Lodge will address.

After attending a public hearing in the RM of Estevanâ&#x20AC;&#x2122;s council chambers last fall regarding a proposal for a camp from another company, it became alarmingly clear there are a very large number of misconceptions about camps.

So, exactly, what is a camp? That word itself is sometimes contentious, and has

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many different connotations. In North Dakota they are referred to as â&#x20AC;&#x153;man-camps,â&#x20AC;? a term that could be considered pejorative, with plenty of negative connotations. In my experience, in many cases these negative connotations are simply wrong.

A camp, in this context, is a place for temporary workforce accommodations that itself is temporary. While many camps are in place for years, they are designed to be set up quickly and can be just as easily disassembled and relocated. While in operation, their amenities may be as good or even better than a hotel.

Camps are often contracted for a specific project or company, and are therefore â&#x20AC;&#x153;closed.â&#x20AC;? To stay at that camp, you have to be affiliated with the company that brought in the camp in the first place. The other end of the spectrum is an â&#x20AC;&#x153;open campâ&#x20AC;? like Boundary Lodge. These function like hotels, in that anyone can stay at them. Individuals rarely do, however. Typically a company will book a number of rooms for its workers. This may be a seismic crew or a hydraulic fracturing company. In southeast Saskatchewan and southwest Manitoba, fracking companies are among the most frequent users of camps.

Camps also differ substantially from hotels in that they offer three meals a day included in the daily rate. This includes a hearty breakfast, bag lunch, and a supper that is prepared by a red-seal chef. Camps live and die by the quality of their food.

The major players in temporary workforce accommodations in Canada, PTI Group and ATCO, have strenuously tried to rebrand such facilities as â&#x20AC;&#x153;lodges,â&#x20AC;? hence the name, Boundary Lodge. As we will find with this lodge in particular, its facilities are a substantial improvement over older-style â&#x20AC;&#x153;camps.â&#x20AC;? However, even in their own literature and postings throughout the facility, the term â&#x20AC;&#x153;campâ&#x20AC;? is often used.

I have kept an eye on this facility for over a year.

There was substantial dirt work done on the site for many months before the numerous modules were brought in and set up on a veritable forest of steel screw-piles. The Boundary Lodge went online in August. While PTIâ&#x20AC;&#x2122;s short-lived Weyburn Lodge was set-up in the space of a few weeks in the fall of 2009, an awful lot more when into Boundary Lodge. The plan is

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for it to be in place for several years.

Check in Boundary Lodge is by far the largest facility of its type in the region. PTI operates facilities in Redvers (102 beds), and Waskada, Man. (192 beds). There is also the upcoming Antler River Lodge in Melita, Man. (258 beds). ATCO has a 200 bed facility in Estevan. Boundary dwarfs them all, at 350 beds. In June I had an opportunity to fly over the lodge. Itâ&#x20AC;&#x2122;s only from the air do you truly get an idea of its scale, with numerous wings connected by â&#x20AC;&#x153;arctic corridors,â&#x20AC;? or hallways joining the various components.

The lodge is located a bit off the beaten path, but in a way, the path is being beaten to the lodge. Thatâ&#x20AC;&#x2122;s because it is located on Township Road 25, one mile east of the right of way for new Estevan truck bypass. That bypass is under construction.

Boundary Lodge can be accessed either by turning east on Township Road 25 just north of Estevan, or taking going north on Shand Road from Highway 39. The lodge is two miles north and half a mile east of the Peterbilt dealership.

The parking area has plenty of electrical plug-ins for cold winter nights, as well as room for large trucks. Thereâ&#x20AC;&#x2122;s a fleet of trucks from a local fracking operation at the far end. Since itâ&#x20AC;&#x2122;s not expected to be that cold this night, I park closer to the front door and forego the plug-in.

At 5:30 p.m. on Jan. 15, I checked in at the PTI Boundary Lodge. As a former pipeliner, I tried to make this stay as close to what I would have experienced in my days as an excavator operator. I had a very long day on the road the day before, and this day I was again on the road. I was wiped and hungry, just as I would have been after a day on the excavator. Treat me like any normal guy, I suggested, one with a big camera around his neck. Thus I asked for a standard room, which is pretty similar to a deluxe room. The difference is a deluxe room has a double bed and a slightly larger private washroom.

Jeff Silva, lodge manager, handled my check-in, which was quite simple. I signed a few papers, he told me where two muster points were in case of evacua-

tion, and we went over the house rules. â&#x20AC;&#x153;Basically, respect each other,â&#x20AC;? he said. If there were any issues, please talk to management or the front desk.

The room My room is halfway down the D-dormitory, the second one from the south along the east side.

Getting out of my SUV I stepped into one of the strongest winds Iâ&#x20AC;&#x2122;ve ever felt in winter. I had to catch my notepad before it flew to Bienfait. It was enough to suck the air out of your mouth as you walked to the building. This harsh weather would factor in later. From my room on the lee side of the structure, I hardly heard a thing.

As I roll my suitcase and camera bag to my room, I run into two frackers who checked in the same time I did. â&#x20AC;&#x153;Sweet! You have your own bathroom!â&#x20AC;? one said to other, clearly impressed.

Impressed, indeed. This is a big change from my last stay in a camp, 11 years ago. Instead of having to walk down the hall to shared bathroom facilities, I had my own sink, toilet and shower. Compared to the older-style dormitories, this is an old pipelinerâ&#x20AC;&#x2122;s little taste of heaven. ɸ Page A22

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Communications important to combating loneliness Éş Page A21 I mentioned this to my neighbours in the hall. â&#x20AC;&#x153;Theyâ&#x20AC;&#x2122;re a lot better,â&#x20AC;? they reassured me.

Out comes the measuring tape. The room is 11 feet long, and seven feet, six inches wide. That doesnâ&#x20AC;&#x2122;t seem very large until you add the two-foot, seven inches wide private washroom, which as a toilet at one end and a shower at the other. When you factor that it, itâ&#x20AC;&#x2122;s substantial. As one guest told me, a standard room at Boundary is like a V.I.P. room elsewhere.

The room has a tall lockable wardrobe and attached chest of drawers. Above that is a wall mounted, pivoting 27-inch LCD television. Next is the twin-sized bed. Itâ&#x20AC;&#x2122;s a little high, which a combination of the pillow-top mattress and the room below for things like suitcases or duffle bags.

Thereâ&#x20AC;&#x2122;s an integrated heater/air conditioner unit.

The fan can be noticeable at times, but thatâ&#x20AC;&#x2122;s to be expected.

On the wall thereâ&#x20AC;&#x2122;s a small desk. Itâ&#x20AC;&#x2122;s large enough for a 17-inch laptop and some papers beside it. A lamp is on the desk.

The last corner of the room has a sink and mirror.

One can shower and shave in the comfort of their own room.

In-room amenities One of the first things I did was pull out my laptop. As I did this, my iPhone beeped with a Facebook chat message. A few taps and I was connected to the local Wi-Fi signal in my room on both the iPhone and on the laptop. Both had a strong signal.

This is important in addressing one of the big issues in staying in working away from homeâ&#x20AC;&#x201C; loneli-

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ness. I was only staying for one night, but most of these workers are there two weeks or more at a time.

Here, I was able to talk on my cellphone, chat on Facebook, or even use FaceTime on the iPhone. Before my kids went to bed that night, I was able to talk face-to-face with my wife and kids. They might have only been six miles away, but that could have just as easily been 600. Having that connection is priceless when working so far away from home.

Would I get Netflix? YouTube? No and no.

These were blocked, and understandably so. The huge amount of bandwidth required by video streaming, multiplied by 350 potential clients, would choke almost any network.

There was a way around this, however. I turned off my Wi-Fi connection to the local network and using SaskTelâ&#x20AC;&#x2122;s 3G network, I was able to watch Rocky. If I tethered my laptop or an iPad to the iPhone, I could have had video streaming. Just be careful of your usage if you donâ&#x20AC;&#x2122;t have an unlimited data plan.

The flat screen TV has 42 channels, including several movie channels and plenty of sports. That sure beat having to drag around your own satellite dish or worse yet, going without any TV. Soap and towels are provided, but not shampoo, which was fine.

That evening I would have supper, visit the gym, and talk to some of the other guests before retiring for the night.

Check out The next morning a shower and shave in my own room, instead of tromping down the hall, was a huge improvement over my last camp stay 11 years ago.

The bed was comfortable, if a little on the firm side. This was likely due to it being a new mattress.

As I told my wife, towels, bedding and linens were provided. Despite the howling wind outside, I hardly heard it, and it certainly wasnâ&#x20AC;&#x2122;t cold in my room. It also wasnâ&#x20AC;&#x2122;t -40 C that night, either.

I didnâ&#x20AC;&#x2122;t hear anything from adjacent rooms, although I could faintly hear people talking in the hallways. This was no different than any hotel Iâ&#x20AC;&#x2122;ve stayed at. If anything, the soundproofing was substantially better.

Breakfast was hearty and filling. After packing my bags, checkout was painless. Just turn in your key, Silva said.

Loading up the SUV, I was on my way, well fed and rested.

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Arctic corridors, and a reminder we live in Canada Â&#x201E; By Brian Zinchuk Estevan â&#x20AC;&#x201C; Integral to new lodge designs is the arctic corridor. To some, itâ&#x20AC;&#x2122;s a hallway. But to a worker staying in a camp, itâ&#x20AC;&#x2122;s salvation.

Driving up the PTI Boundary Lodge northeast of Estevan, the radio kept barking warnings of 90 kilometres per hour wind gusts. A semi was blown off the highway near Saskatoon. When I got out of my SUV, the wind took my breath away.

That evening my e-mail kept beeping with warnings from RCMP detach-

ments across the province, warning of icy conditions and next to no visibility.

Stay off the roads, they recommended.

Welcome to a Canadian winter.

This is where arctic corridors come in. They are hallways connecting dormitories to cooking and recreational areas. You take your footwear off when you enter the facility, and walk in socked feet throughout. No boots, no jackets are needed. The weather, as miserable as it was this night, stays outside.

During my stay at Boundary Lodge I took my belongings to my room, went to the dining room, back to my room, changed into workout clothes, spent some time in the gym, went back to my room, then one more trip to the mug-up room before settling in for the night. In an older-style camp, I would have had to brave the cold and wind each time. Would I have gone to the gym to work out? Fat chance. I likely would have stayed in my room and felt like a prisoner.

Arctic corridors, in other words, are a godsend.

Sharing the Energy

Crescent Point is proud to be part of the community. dĹ˝ Ć?ŽžÄ&#x17E;Í&#x2022; Ć&#x161;Ĺ&#x161;Ĺ?Ć? ĹľĹ?Ĺ?Ĺ&#x161;Ć&#x161; ůŽŽŏ ĹŻĹ?ĹŹÄ&#x17E; Ä&#x201A; Ĺ&#x161;Ä&#x201A;ĹŻĹŻÇ Ä&#x201A;Ç&#x2021;Í&#x2DC; ĆľĆ&#x161; Ĺ?Ĩ Ç&#x2021;Žƾ Ä&#x201A;Ć&#x152;Ä&#x17E; Ć?Ć&#x161;Ä&#x201A;Ç&#x2021;Ĺ?ĹśĹ? Ä&#x201A;Ć&#x161; Ä&#x201A; Ä?Ä&#x201A;ĹľĆ&#x2030;Í&#x2022; Ä&#x201A;Ć&#x152;Ä?Ć&#x;Ä? Ä?Ĺ˝Ć&#x152;Ć&#x152;Ĺ?Ä&#x161;Ĺ˝Ć&#x152;Ć? ĹľÄ&#x201A;ĹŹÄ&#x17E; Ä&#x201A; Ç Ĺ˝Ć&#x152;ĹŻÄ&#x161; ŽĨ Ä&#x161;Ĺ?ÄŤÄ&#x17E;Ć&#x152;Ä&#x17E;ĹśÄ?Ä&#x17E;Í&#x2DC; Photo by Brian Zinchuk

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Estevan â&#x20AC;&#x201C; Sitting in the theatre room of the PTI Boundary Lodge, engineer Brett Berger could be found with his laptop and tablet, catching up on the outside world. â&#x20AC;&#x153;I grew up in Medicine Hat and live there,â&#x20AC;? he said. â&#x20AC;&#x153;Most of our crew is from Medicine Hat.â&#x20AC;?

He works with a fracking crew that was staying at the lodge. â&#x20AC;&#x153;I went to school in Edmonton and worked at a steel foundry for a while,â&#x20AC;? he added Berger has spent eight months working in the oilpatch and as a fracker. Heâ&#x20AC;&#x2122;s in pursuit of his professional engineering designation.

Bergerâ&#x20AC;&#x2122;s degree is in materials engineering. â&#x20AC;&#x153;I did a lot of welding stuff, a lot of research,â&#x20AC;? he said. Now 23-yearsold, he graduated in 2012. â&#x20AC;&#x153;If weâ&#x20AC;&#x2122;re in the boonies, itâ&#x20AC;&#x2122;s camps for sure. But if weâ&#x20AC;&#x2122;re in Grande Prairie or here, I get a choice of hotel,â&#x20AC;? he

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the nature of wireless networks. As a result, he was getting his Wi-Fi in the theatre room. â&#x20AC;&#x153;It makes the road a

said. In the past thatâ&#x20AC;&#x2122;s meant going with a hotel, but Berger has since chosen to stay at the lodge for its amenities and the fact he doesnâ&#x20AC;&#x2122;t have to cook. â&#x20AC;&#x153;I really like to cook but itâ&#x20AC;&#x2122;s hard in a hotel, so you have to get by with stuff. The foodâ&#x20AC;&#x2122;s good here, at some camps itâ&#x20AC;&#x2122;s just awful,â&#x20AC;? he said. â&#x20AC;&#x153;I like that they have an actual gym. I work out a lot. â&#x20AC;&#x153;This room is sweet,â&#x20AC;? he said of the theatre room, which sports a projector and a large screen. Itâ&#x20AC;&#x2122;s filled with home theatre recliners. Companies can use it for presentations, but its usual use is for entertainment. â&#x20AC;&#x153;They order UFC fights. The seats are packed, and guys are sitting on the floor,â&#x20AC;?

Berger said. â&#x20AC;&#x153;A standard room here feels like a VIP,â&#x20AC;? he said. Noting the private washrooms for all rooms, Berger said, â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s really nice, if you wake

up in the middle of the night, you only have to walk three feet.â&#x20AC;? â&#x20AC;&#x153;Iâ&#x20AC;&#x2122;ve got TV, Iâ&#x20AC;&#x2122;ve got Internet. Iâ&#x20AC;&#x2122;ve been to a few camps that have everything, but some are so far out, you donâ&#x20AC;&#x2122;t have much. If you have down days here, thereâ&#x20AC;&#x2122;s stuff you can do. â&#x20AC;&#x153;I usually do stuff with the other guys.â&#x20AC;?

His room this time out had less-than-great Internet, which is a rarity, Berger explained, since most of the rooms he has stayed in at the facility have good connections. Thatâ&#x20AC;&#x2122;s just

lot easier when you can talk to people,â&#x20AC;? he said Berger noted that in remote camps, compounding a drive to

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Estevan â&#x20AC;&#x201C; Sitting down for supper, Aaron Smith, recently of Sylvan Lake, speaks highly of the chef at PTIâ&#x20AC;&#x2122;s Boundary Lodge near Estevan. â&#x20AC;&#x153;The chef here is really good. PTI has a history of hiring good, trained chefs. Iâ&#x20AC;&#x2122;ve heard that before.â&#x20AC;? Chowing down on the short ribs, Smith noted, â&#x20AC;&#x153;Iâ&#x20AC;&#x2122;m a skinny guy. I have troubles gaining weight.

Every time I come here, I go home five pounds fatter.â&#x20AC;? â&#x20AC;&#x153;Iâ&#x20AC;&#x2122;ve only stayed in three camps. My experience is small, but this is the nicest, by far.â&#x20AC;?

Smith has marriage plans in his near future.

Heâ&#x20AC;&#x2122;s engaged to his high school sweetheart, Natasha. â&#x20AC;&#x153;Sheâ&#x20AC;&#x2122;s an EMT (emergency medi-

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cal technician) in the patch, working at Rocky Mountain House. We live at Sylvan Lake. She commutes every day to Rocky Mountain House,â&#x20AC;? he said.

Smith works for a hydraulic fracturing, cementing and acidizing company out of Red Deer. That means working out of their various shops throughout the West, including Grande Prairie, Red Deer and Estevan. â&#x20AC;&#x153;Ninety per cent of our work is here or in northern B.C.,â&#x20AC;? Smith said.

Smith goes on to say heâ&#x20AC;&#x2122;s â&#x20AC;&#x153;just an operator, still learning,â&#x20AC;? working with cement and acid. â&#x20AC;&#x153;I got into the patch in September. I used to work for the City of Edmonton, driving plow, filling potholes, living the dream.â&#x20AC;? â&#x20AC;&#x153;I looked at the guys who were there for 30 years, filling out the last 10 years of their pension. They were miserable. I didnâ&#x20AC;&#x2122;t want to be that.â&#x20AC;?

As for Natasha, he said, â&#x20AC;&#x153;Sheâ&#x20AC;&#x2122;s also a firefighter. She went to Texas for a course.â&#x20AC;?

Thatâ&#x20AC;&#x2122;s oilfield firefighting, not municipal firefighting. â&#x20AC;&#x153;She was offered a

job in Red Deer, so we decided to move to Red Deer from Edmonton.

Once I found a job there, I followed, and we found a place to rent. It was a change of scenery,â&#x20AC;? said Smith. â&#x20AC;&#x153;She worked for Edmonton Transit, washing, then servicing busses, and eventually towing. She and I used to work residential construction together. â&#x20AC;&#x153; Asked about working apart, Smith said, â&#x20AC;&#x153;It takes as much for her to trust me coming here as me trusting her working with a bunch of guys.â&#x20AC;?

A date isnâ&#x20AC;&#x2122;t set for the wedding yet, but they hope to buy a house. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re doing it all backwards, but we didnâ&#x20AC;&#x2122;t have a kid.â&#x20AC;?

Smith said their families are always asking what camp life is like. Other camps, he noted, were older and different, but â&#x20AC;&#x153;not terrible.â&#x20AC;?

For entertainment, he bought a tablet and loaded it with movies.

He also has a portable hard drive loaded with movies. â&#x20AC;&#x153;It keeps me entertained.â&#x20AC;? â&#x20AC;&#x153;Iâ&#x20AC;&#x2122;m learning a lot.

Iâ&#x20AC;&#x2122;m enjoying that, making some good money.

Thatâ&#x20AC;&#x2122;s good,â&#x20AC;? he concluded.

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$ Ă&#x20AC;YH KRXU WULS KRPH VXUH EHDWV â&#x20AC;&#x153;Iâ&#x20AC;&#x2122;ve been up in northern B.C. at Geetla, and Waddell, near Fort McMurray.â&#x20AC;?

Genaille is Metis. â&#x20AC;&#x153;Iâ&#x20AC;&#x2122;m single. I have one child,â&#x20AC;? she said. â&#x20AC;&#x153;Sheâ&#x20AC;&#x2122;s 11. She stays with my mom at home.â&#x20AC;?

Genaille has worked for three years with PTI. Asked about how she came to work for PTI, she said, â&#x20AC;&#x153;I heard about camps and heard the money was good. I had no experience with camps. I went to a career fair in Edmonton, and the next thing you know, I was hired. â&#x20AC;&#x153;I stay 21 days in and seven out.â&#x20AC;? 'Ä&#x17E;Ć&#x152;Ä&#x201A;ĹŻÄ&#x161;Ĺ?ĹśÄ&#x17E; 'Ä&#x17E;ĹśÄ&#x201A;Ĺ?ĹŻĹŻÄ&#x17E; Ć&#x152;Ĺ?ĹśĆ?Ä&#x17E;Ć? Žč Ä&#x161;Ĺ?Ć?Ĺ&#x161;Ä&#x17E;Ć? Ä&#x201A;Ć? Ä&#x201A; Ĺ?Ä&#x17E;ĹśÄ&#x17E;Ć&#x152;Ä&#x201A;ĹŻ Ĺ&#x161;Ä&#x17E;ĹŻĆ&#x2030;Ä&#x17E;Ć&#x152; Ä&#x201A;Ć&#x161; Thatâ&#x20AC;&#x2122;s a lot of time away from her child, but Ć&#x161;Ĺ&#x161;Ä&#x17E; Wd/ ŽƾŜÄ&#x161;Ä&#x201A;Ć&#x152;Ç&#x2021; >Ĺ˝Ä&#x161;Ĺ?Ä&#x17E;Í&#x2DC; dĹ&#x161;Ä&#x17E;Ć?Ä&#x17E; Ä&#x161;Ä&#x201A;Ç&#x2021;Ć? Ć?Ĺ&#x161;Ä&#x17E;Í&#x203A;Ć? Ç Ĺ˝Ć&#x152;ĹŹĹ?ĹśĹ? Ä&#x201A; ĹŻĹ˝Ć&#x161; Genaille said, â&#x20AC;&#x153;I phone home every night. Sheâ&#x20AC;&#x2122;s Ä?ĹŻĹ˝Ć?Ä&#x17E;Ć&#x152; Ć&#x161;Ĺ˝ Ĺ&#x161;Ä&#x17E;Ć&#x152; Ĺ&#x161;ŽžÄ&#x17E; Ĺ?Ĺś ,ĆľÄ&#x161;Ć?ŽŜ Ä&#x201A;Ç&#x2021;Í&#x2DC; pretty spoiled. Sheâ&#x20AC;&#x2122;s used to me being away. â&#x20AC;&#x153;The pay is a lot better than minimum wage.â&#x20AC;?

Estevan â&#x20AC;&#x201C; Geraldine Genaille has been working Previously Genaille had worked at the Maple in camps for several years now, but her most recent Leaf pork plant in Brandon, as well as at the Joeyâ&#x20AC;&#x2122;s posting had brought her markedly closer to home.

Only Seafood.

From Hudson Bay, Sask., Genaille is a â&#x20AC;&#x153;general â&#x20AC;&#x153;These camps, they feed you really well,â&#x20AC;? she helper,â&#x20AC;? who works in the kitchen and dining room said, taking a minute from hosing down dishes after of the PTI Boundary Lodge near Estevan. the supper service. â&#x20AC;&#x153;Iâ&#x20AC;&#x2122;ve been doing this for three years,â&#x20AC;? she said.

Her work day is 10 hours long, split into two

shifts. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s steady. Iâ&#x20AC;&#x2122;m here a lot (doing dishes) or on the floor,â&#x20AC;? she said.

Genaille said she hears a lot of gratitude for the good food, despite the fact she doesnâ&#x20AC;&#x2122;t actually prepare it. â&#x20AC;&#x153;They say, â&#x20AC;&#x2DC;Oh, God, Iâ&#x20AC;&#x2122;m gaining weight,â&#x20AC;&#x2122;â&#x20AC;? Genaille said with a smile.

Initially she wasnâ&#x20AC;&#x2122;t too keen on working at Estevan, where she started in August, but sheâ&#x20AC;&#x2122;s since changed her mind. â&#x20AC;&#x153;Iâ&#x20AC;&#x2122;m only five hours from home,â&#x20AC;? Genaille said with a smile. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s better than 18.â&#x20AC;?

When working in Geetla, it was an 18 hour trip each way. That meant taking a bus to Edmonton, and then driving all the way to Hudson Bay. After doing some shopping for her child, she had just one day of rest before having to turn around and head back. â&#x20AC;&#x153;At first I didnâ&#x20AC;&#x2122;t want to work in Saskatchewan, but now Iâ&#x20AC;&#x2122;d rather stay here. Itâ&#x20AC;&#x2122;s closer to home,â&#x20AC;? she said. â&#x20AC;&#x153;The travel took two days of seven off.

Now I work half a day and Iâ&#x20AC;&#x2122;m home the same day.â&#x20AC;?

5HDU GHVN RSWLRQ DGGHG WR RIĂ&#x20AC;FHV 7R *R about 35 units,â&#x20AC;? he said.

The bulk of their sales are to rental fleets. They sell to individuals as well.

Improvements in the 2013-2014 models included high-gloss fibreglass exteriors and ducted

air conditioning. The wrapped rubber roof has been extended to about four inches down the side. This is to improve water and snow run-off. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re starting to build some service rig doghouses,â&#x20AC;? Edmundson added.

Leased Ops & Company Drivers always welcome to apply. ĹśÄ&#x17E;Ç ĹŻÄ&#x201A;Ç&#x2021;ŽƾĆ&#x161;Í&#x2022; Ç Ĺ?Ć&#x161;Ĺ&#x161; Ä&#x201A; Ć&#x152;Ä&#x17E;Ä&#x201A;Ć&#x152; Ä&#x161;Ä&#x17E;Ć?ĹŹÍ&#x2022; Ä&#x201A;Ä&#x161;Ä&#x161;Ć? Ć?ŽžÄ&#x17E; Ç&#x20AC;Ä&#x201A;Ć&#x152;Ĺ?Ä&#x17E;Ć&#x161;Ç&#x2021; Ć&#x161;Ĺ˝ Ć&#x161;Ĺ&#x161;Ä&#x17E; KĸÄ?Ä&#x17E;Ć? dĹ˝ 'Ĺ˝ ĹŻĹ?ĹśÄ&#x17E;Í&#x2DC;

Weyburn â&#x20AC;&#x201C; It may be an office on wheels, but thereâ&#x20AC;&#x2122;s a reason thereâ&#x20AC;&#x2122;s a comfy couch in it. Sometimes itâ&#x20AC;&#x2122;s used to catch a few winks.

Offices To Go is a division of Minards Liesure World in Weyburn, with operations both there and in Lacombe, Alta.

Rick Edmundson is western sales manager for OTG. He works out of Lacombe. â&#x20AC;&#x153;The demand has been really good this past year,â&#x20AC;? he said.

OTG carries three stock models, but custom builds another five or six designs as need be. One of the most common models sees extensive usage as consultantsâ&#x20AC;&#x2122; trailers on service rigs. â&#x20AC;&#x153;Basically they want durability, warmth and comfort, and we offer all three of those,â&#x20AC;? he said.

They offer an 18-foot and two 23-foot models.

The most recent model, the 23-2, changes up the layout, placing the desk at the rear. â&#x20AC;&#x153;Thatâ&#x20AC;&#x2122;s new for this year,â&#x20AC;? Edmundson said. â&#x20AC;&#x153;We needed a little more variety.â&#x20AC;?

OTG has its own rental fleet, but that is in Saskatchewan only. â&#x20AC;&#x153;The rental market is pretty good. We have

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,I WKH IRRG LV JRRG LW¡V KDUG WR ORVH ZHLJKW LQ FDPS Â&#x201E; By Brian Zinchuk Estevan â&#x20AC;&#x201C; What differentiates a camp from a hotel? Food.

If a camp is to be successful, it must have good food. It must be varied, palatable, and

taste delicious. I had a busy day prior to checking into the PTI Boundary Lodge on Jan. 15, so I was hungry.

Supper is the highlight of the day. Itâ&#x20AC;&#x2122;s served from 5 p.m. to 8 p.m. I got there around

6:30 p.m.

Starting off with the salad bar, there was ample variety to build your own salad, as well as several different selections, like potato salad or bean salad. I chose Greek salad along

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with pickled beets.

A fountain pop dispenser could be found near the milk (chocolate and plain) dispenser.

For the main course I went with the teriyaki short ribs and chicken breast, both of which were delicious. I placed the Salisbury steak on

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my cold beet pickles, and that didnâ&#x20AC;&#x2122;t do it any favours. As expected, the plate was a mountain by the time it got to my table. Moderation would probably be advised, but not likely followed. Itâ&#x20AC;&#x2122;s hard to pass up good food, especially when you didnâ&#x20AC;&#x2122;t have to cook it.

Thereâ&#x20AC;&#x2122;s a variety of deserts, from ice cream to puddings and Jell-O topped with whipped cream. I have a weakness for cheesecake, and it didnâ&#x20AC;&#x2122;t disappoint.

There were also several

pies in the cooler.

By the time I was done, I was quite full.

Breakfast The next morning I got to the dining hall around 6:45 a.m.

Breakfast hours run from 5 a.m. to 8 a.m., Breakfast is a hearty affair, since the clients of the Boundary Lodge are likely going to be working outside, in the cold, and working hard.

Additionally, itâ&#x20AC;&#x2122;s a long time until lunch, so you donâ&#x20AC;&#x2122;t want to leave camp on an empty stomach. Â&#x201E;Page A29

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707,305, 5,>: -LIY\HY` Bag lunch.

Éş Page A28 Breakfast had the usual items. Thereâ&#x20AC;&#x2122;s a selection of cold cereal along one wall. Next to it were industrial toasters. There was plenty of fruit to choose from and even more in the bag-up room.

I threw the chef a curveball when he asked what sort of eggs I would like. I asked for two poached eggs. It became apparent that he knew how to make them properly, boiled in water, and my own method was not so great.

Lunch Since most people are either gone to the worksite or sleeping during the noon hour, lunch is typically a soup and sandwich, with occasional hot menu items. Most clients take advantage of the bag lunch offered.

Bag lunch â&#x20AC;&#x153;You should go to that camp again and bring me more beef stew.â&#x20AC;?

So said my daughter, Katrina, who is nine. She and my son Spencer attacked my bag lunch with

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much gusto when they came home from school.

One of the three meals provided each day at the PTI Boundary Lodge is the bag lunch. If you are staying at a camp, the express reason is so you can work elsewhere. That means you need a lunch you can take with you.

The bag up room has three areas, with plenty of room for numerous people to pack their lunch at the same time. Thatâ&#x20AC;&#x2122;s important for a camp that has 350 beds and a kitchen facility large enough for approximately 600 people.

On one end is the sandwich and fruit cooler.

There are a wide variety of sandwiches and a rainbow of fruit. Thereâ&#x20AC;&#x2122;s individual puddings and other snacks.

In the middle is the beverage area, with large coffee and hot water dispensers for tea. Thereâ&#x20AC;&#x2122;s a variety of fountain juices.

The far end is another cooler packed with pop

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Fat newspaper editor visits camp gym, no heart attack ensues dĹ&#x161;Ä&#x17E;Ć&#x152;Ä&#x17E; Ä&#x201A;Ć&#x152;Ä&#x17E; Ć&#x2030;ĹŻÄ&#x17E;ĹśĆ&#x161;Ç&#x2021; ŽĨ ĨĆ&#x152;Ä&#x17E;Ä&#x17E; Ç Ä&#x17E;Ĺ?Ĺ?Ĺ&#x161;Ć&#x161;Ć?Í&#x2022; Ä&#x201A;ĹŻĹŻ Ć&#x161;Ĺ&#x161;Ä&#x17E; Ç Ä&#x201A;Ç&#x2021; ĆľĆ&#x2030; Ć&#x161;Ĺ˝ Ď­ĎŹĎŹ Ć&#x2030;ŽƾŜÄ&#x161;Ć? Ä&#x17E;Ä&#x201A;Ä?Ĺ&#x161;Í&#x2DC; ĨÄ&#x201A;Ć&#x161; ĹľÄ&#x201A;ĹśÍ&#x2022; ŽƾĆ&#x161; ŽĨ Ć?Ĺ&#x161;Ä&#x201A;Ć&#x2030;Ä&#x17E; ĹŻĹ?ĹŹÄ&#x17E; ĹľÄ&#x17E;Í&#x2022; Ĺ&#x161;Ä&#x201A;Ä&#x161; Ć&#x161;Ĺ˝ Ć?Ä&#x17E;ĆŠĹŻÄ&#x17E; ĨŽĆ&#x152; ĎŽĎŹ Ć&#x2030;ŽƾŜÄ&#x161;Ć? Ć&#x161;Ĺ˝ Ć?Ć&#x161;Ä&#x201A;Ć&#x152;Ć&#x161; Ç Ĺ?Ć&#x161;Ĺ&#x161;Í&#x2DC;

Â&#x201E; By Brian Zinchuk Estevan â&#x20AC;&#x201C; After a filling, delicious supper in the PTI Boundary Lodge dining room, my stomach was telling me one thing â&#x20AC;&#x201C; Iâ&#x20AC;&#x2122;m full.

And I probably should do something about that. Time to hit the gym.

Over the past several years I have written about nearly every new hotel or camp facility in southeast Saskatchewan.

There has been one consistent trend: gyms are more and more important. Customers are demanding good facilities.

Two hotel chains, for instance, have increased the size of their workout areas substantial with each new property.

At PTIâ&#x20AC;&#x2122;s Boundary Lodge, the recreation area is its own wing.

There are two pool tables, an air hockey table, and a theatre room, completed with comfy, reclining home theatre recliners. At the end of the wing are the two gyms.

The one on the left has more equipment, and the one on the right is more open, with room for activities like yoga. It had similar equipment â&#x20AC;&#x201C; treadmill, elliptical and the like, but I decided on the heavy duty gym instead.

I honestly canâ&#x20AC;&#x2122;t remember the last time Iâ&#x20AC;&#x2122;ve spent significant time in gym of any kind.

I have an occasionally used exercise bike at home, and many, many years ago I used to pump iron with some free weights. These days, however, my rotund belly and inflated gullet had me wincing every time I looked in the wall mirror. Surely this is a man who needs to spend more time in the gym.

First up was the treadmill. The day before I told my doctor I was considering buying one. His reply was essentially buy one, now, and get on it.

The treadmill, along with the other exercise machines, had an iPhone/iPod socket

with a 30-pin connector, allowing me to plug my phone into the machine for musical accompaniment and encouragement. However, since I neglected to bring headphones, the machineâ&#x20AC;&#x2122;s audio controls didnâ&#x20AC;&#x2122;t help much. Since I had the gym to myself, I used the speakers built into the iPhone instead.

This did necessitate me muting the volume on the hockey game playing on the TV on

the wall in the corner. If there were other people in the gym, I might have had to defend

myself for having such temerity, but this time I got away with it. ɸ Page A32

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After eating so much good food, you should work it off Éş Page A31 The treadmill was enticing because I have Ć&#x161; ŽŜÄ&#x17E; Ć&#x2030;Ĺ˝Ĺ?ĹśĆ&#x161;Í&#x2022; Ć&#x161;Ĺ&#x161;Ĺ?Ć? Ä?Ĺ˝Ä&#x161;Ç&#x2021; Ĺ&#x161;Ä&#x201A;Ä&#x161; Ä&#x201A; Ć?Ĺ?Ç&#x2020; Ć&#x2030;Ä&#x201A;Ä?ĹŹÍ&#x2DC; Ć&#x152;ŽƾŜÄ&#x161; Ć&#x161;Ĺ&#x161;Ä&#x201A;Ć&#x161; Ć&#x;ĹľÄ&#x17E;Í&#x2022; Ć&#x161;Ĺ&#x161;Ä&#x17E; ĹŻĆľÄ&#x17E; :Ä&#x201A;Ç&#x2021;Ć? Ç Ĺ˝Ĺś Ć&#x161;Ĺ&#x161;Ä&#x17E; tĹ˝Ć&#x152;ĹŻÄ&#x161; been trying over the past year and a half to ^Ä&#x17E;Ć&#x152;Ĺ?Ä&#x17E;Ć?Í&#x2022; Ć&#x161;Ç Ĺ?Ä?Ä&#x17E;Í&#x2DC; DÇ&#x2021;Í&#x2022; Ĺ&#x161;Ĺ˝Ç Ć&#x161;Ĺ&#x161;Ĺ?ĹśĹ?Ć? Ä?Ĺ&#x161;Ä&#x201A;ĹśĹ?Ä&#x17E;Í&#x2DC; Photo by Brian Zinchuk do a lot more walking.

A heart attack in the summer of 2012 will do that for you. But with the miserable weather weâ&#x20AC;&#x2122;ve seen since November, Iâ&#x20AC;&#x2122;ve all but stopped. In the meantime Iâ&#x20AC;&#x2122;ve been packing on the pounds.

Thatâ&#x20AC;&#x2122;s why having a good workout area is important in a camp.

Not everyoneâ&#x20AC;&#x2122;s job is physically active. Even :HHNO\ PRQWKO\ SDFNDJHV DYDLODEOH if it is, it might not provide either the cardio

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or strength training workout you need.

The other reason, and probably the more pertinent one, is the exceptional quality of the food. Supper wasnâ&#x20AC;&#x2122;t high school cafeteria fare, but a multi-course meal prepared by a red-seal chef. Since a crew will pack up and leave for another hotel or camp if the food isnâ&#x20AC;&#x2122;t up to par, if a facility is to stay in business, they have to serve great food.

If youâ&#x20AC;&#x2122;re like most guys, you will probably fill your plate just a little more than you would at home, and maybe grab that cheesecake in the fridge on the way to your table.

Itâ&#x20AC;&#x2122;s a common saying that no one loses weight at camp, but if you put an effort into moderating your food intake and working out, maybe youâ&#x20AC;&#x2122;ll still fit into your jeans at the end of your rotation.

Thatâ&#x20AC;&#x2122;s what was going through my mind as I hit cool-down on the treadmill. Next up was the leg press.

Since this was my first workout in, well, um, the better part of a decade, I didnâ&#x20AC;&#x2122;t pack on much in the way of weights. The leg press station got the heart going, angled at roughly 45 degrees.

I passed on the heavy duty workout stations, like the barbells.

Of the several integrated stations, one that allowed either curls or pull-downs caught my eye. A few reps on that and my eyes were bugging out. Okay, enough of that.

The dumbbell free weights were intimidating. As a young man I used to do a lot with 20 pound dumbbells. The rack went all the way up to 100 pounds per weight. That wouldnâ&#x20AC;&#x2122;t be me. Maybe the guys who work on the iron trucks for frac crews use those ones.

In all, I spent 45 minutes in the gym. If I was staying there on a regular basis, I would like to think Iâ&#x20AC;&#x2122;d make use of it daily. At least, thatâ&#x20AC;&#x2122;s what I tell myself.

The key thing, as noted in another story, was the arctic corridor.

If, after a sweaty workout, I had to go outside to go to my room in another building, I simply would not have used the gym.

Before heading back to my room I shot a bit of pool and grabbed a snack and some herbal tea from the mug-up room. I might have worked off supper, but I wasnâ&#x20AC;&#x2122;t going to bed without a snack.

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707,305, 5,>: -LIY\HY` A red-seal chef, Joshua Schielke is well regarded by the guest at the PTI Boundary Lodge, near Estevan, where he works.

Photo by Brian Zinchuk

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The guests wonâ&#x20AC;&#x2122;t stop talking about the chef Â&#x201E; By Brian Zinchuk Estevan â&#x20AC;&#x201C; Everyoneâ&#x20AC;&#x2122;s been fed, and breakfast is over. Chef Joshua Schielke now has a second to talk.

Chefs usually donâ&#x20AC;&#x2122;t prepare breakfast at camps â&#x20AC;&#x201C; thatâ&#x20AC;&#x2122;s more of a cookâ&#x20AC;&#x2122;s job. But heâ&#x20AC;&#x2122;s working on it this morning, asking each bleary-eyed guest, â&#x20AC;&#x153;How are you this morning, my friend?â&#x20AC;?

Schielke has a common-law wife and two kids.

Peterborough, Ont. is home for the 36-year-old.

Another guest walks up to the counter. Schielke jumps up from the table and asks, â&#x20AC;&#x153;Eggs for you?â&#x20AC;? â&#x20AC;&#x153;Two over easy,â&#x20AC;? the guest replies.

Schielke is a red-seal chef. He got his papers four years ago. â&#x20AC;&#x153;Iâ&#x20AC;&#x2122;m from B. C., from the Shuswap, Salmon Arm,â&#x20AC;? he said, the eggs now done.

To a one, every guest Pipeline News spoke to staying at PTIâ&#x20AC;&#x2122;s Boundary Lodge spoke very highly of

'

Schielke. In most instances, it was the first thing out of their mouth. Clearly heâ&#x20AC;&#x2122;s made an impression.

The chef has worked at the Wedgewood Hotelâ&#x20AC;&#x2122;s Bacchus Restaurant and The Creek Restaurant at the Granville Island Hotel, both in Vancouver. Heâ&#x20AC;&#x2122;s also done private catering in San Diego and Hawaii. â&#x20AC;&#x153;Bacchus was very highly rated, third best in B.C. at the time. I was chef de partie. Itâ&#x20AC;&#x2122;s like a sous chef, but more on the back end catering function,â&#x20AC;? he said.

He may be 36, but heâ&#x20AC;&#x2122;s got 23 years experience in commercial kitchens. â&#x20AC;&#x153;I started at 13 as a dishwasher, and was cooking within six months,â&#x20AC;? he said.

So what is the chef â&#x20AC;&#x2122;s favourite dish? The answer is surprising. â&#x20AC;&#x153;I donâ&#x20AC;&#x2122;t have one,â&#x20AC;? he said. â&#x20AC;&#x153;I was trained in classical French. I practice it at home. A lot of the chefs were French at the Wedgewood and The Creek. ɸ Page A35

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+DYLQJ ZRUNHG LQ Ă&#x20AC;QH UHVWDXUDQWV QRZ KH FRRNV IRU RLOĂ&#x20AC;HOG ZRUNHUV Éş Page A33 â&#x20AC;&#x153;I love sushi, but I donâ&#x20AC;&#x2122;t make it that much.â&#x20AC;?

He recounted how he once made a big sushi buffet, but it didnâ&#x20AC;&#x2122;t go over as well as he had hoped. â&#x20AC;&#x153;Theyâ&#x20AC;&#x2122;re meat and potatoes guys.

They donâ&#x20AC;&#x2122;t like sushi,â&#x20AC;? he said.

So what do the clients in camps like? â&#x20AC;&#x153;Their favourite is steak night â&#x20AC;&#x201C; prime rib. They like seafood too â&#x20AC;&#x201C; prawns, crab legs, muscles,â&#x20AC;? Schielke said.

Steak night is every Tuesday.

Saturday is prime rib.

As for menu choices, Schielke said, â&#x20AC;&#x153;We have a senior executive chef who writes five-week menus.

Weâ&#x20AC;&#x2122;ve got great variation on our menu. Weâ&#x20AC;&#x2122;ve got bison, lamb, a lot of beef products, pork hocks, and seasonal food, too.â&#x20AC;?

For instance, in the fall, squashes will be added to the menu. During the summer, itâ&#x20AC;&#x2122;s fresh fruit.

Thereâ&#x20AC;&#x2122;s always variation, he said.

Clients will come up and ask for chicken fingers, for instance. With ribs, it could be dry ribs, Cajun, short ribs, just as some examples. Different cooks and the influence of the relief chef also helps spice things up.

The Boundary Lodgeâ&#x20AC;&#x2122;s kitchen facilities were built with expansion in mind. Indeed, itâ&#x20AC;&#x2122;s considered large enough to handle an expansion that would roughly double its current 350 beds. But how do you ensure that people who come in early or late get the same quality of meals? â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s called batch cooking,â&#x20AC;? he said. â&#x20AC;&#x153;Throughout the service, youâ&#x20AC;&#x2122;re cooking. Usually youâ&#x20AC;&#x2122;ll get two batches, for night shift and day.â&#x20AC;?

That means in the evening, the night shift will come in first, and then the day shift will come in later after they have changed off in the field.

As the occupancy of a camp grows, so does the menu. At a certain level, a fast food line is added. Additional staff is brought in too.

Asked how they keep from

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serving the same type of food as the stereotypical high school cafeteria, Schielke said the senior executive chef and the experience of the campâ&#x20AC;&#x2122;s chef make the difference. â&#x20AC;&#x153;If you had a cafeteria cook here, youâ&#x20AC;&#x2122;d probably have a riot.â&#x20AC;?

He added, â&#x20AC;&#x153;Youâ&#x20AC;&#x2122;ve got to know your clients. Some really like healthy food, like chicken breast.â&#x20AC;?

Those from the East Coast actually arenâ&#x20AC;&#x2122;t always that big on seafood, either, he noted. They, too, prefer meat and potatoes.

Religious beliefs and their dietary restrictions are followed as much as possible when requested.

Schielke has been all over with PTI, over the last eight years. That includes working at numerous camps up in the oilsands region. He worked his way up from first cook to relief

chef and then chef. In this region, heâ&#x20AC;&#x2122;s worked at Waskada, Man., Redvers and now Boundary Lodge.

In a pocket on his left bicep is an ever-present thermometer, used for checking temperatures. In the kitchen he pulls out a more complex version, a hand-held computer with a wired probe. Itâ&#x20AC;&#x2122;s part of being HACCP-certified.

Hazard Analysis and Critical Control Points is an approach to food safety that is systematic and preventive, according to the Canadian Food Inspection Agency. The machine is used throughout the day for continual monitoring of food in storage, preparation, on the line and in the cooler. It is downloaded daily and reviewed as part of the quality control process. Schielke calls it â&#x20AC;&#x153;a great system.â&#x20AC;?

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Housing situation improving in Estevan Â&#x201E; By Brian Zinchuk Estevan â&#x20AC;&#x201C; After several years of extremely tight housing availability in Estevan, things are starting to look up, with numerous projects underway.

Estevan Mayor Roy Ludwig spoke to Pipeline News on Jan. 13.

He started off by pointing to the numerous developers that are now working in the

Energy City. Trimount Developments is going into its next phase on the Dominion Heights subdivision on the north end of the city, which includes condominiums, duplexes and single family homes. Rock Solid is working in the Trojan subdivision in the centre of the city, with 38 smaller lots intended for first time home owners.

Then thereâ&#x20AC;&#x2122;s West

D, which spend January doing a lot of the dirt work for its first 440-lot project known as The Ridge. Approximately 85 units are in the first phase, which will use modular housing. It is located on the south edge of Estevan.

Another 33 apartments are being built on top of a commercial development on Kensington Avenue. A further

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55 condominiums are under construction near existing seniors housing.

With all that said, Ludwig stated, â&#x20AC;&#x153;I believe the housing situation is starting to stabilize.

Weâ&#x20AC;&#x2122;re starting to have a little excess in the market, which is a good thing. Our biggest problem is on the affordable housing side.â&#x20AC;?

Even condominiums that have been purchased with the intention of renting them out are not really affordable when it comes time to pay the rent cheque.

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â&#x20AC;&#x153;Going out on a limb, Iâ&#x20AC;&#x2122;d say â&#x20AC;&#x2DC;affordableâ&#x20AC;&#x2122; in Estevan is $1,400 to $1,500 for a two bedroom apartment,â&#x20AC;? he said. â&#x20AC;&#x153;People are paying $1,100 to $1,200 for a room in a basement.â&#x20AC;?

There are three new hotels on the horizon. Two are Holiday Inns, and the third, on Kensington, has not yet been named. All have been approved. Foundation work for one of the Holiday Inns, south of Walmart, was done in mid-2013, but has seen little action since. Ludwig noted the proponents are building hotels throughout the province, and havenâ&#x20AC;&#x2122;t gotten to Estevan yet.

With the SaskPower Boundary Dam carbon capture project in its final phases, Ludwig expects the situation to ease up. That project had, at peak times, up to 1,500 workers on site. â&#x20AC;&#x153;A lot of carbon capture workers were billeted with homeowners,â&#x20AC;? he said.

While the project put a big strain on housing, heâ&#x20AC;&#x2122;s not sure if its conclusion will alleviate the issue. SaskPower consistently has several projects a year, he noted.

Ludwig also hopes that down the road, Units 4, 5 and 6 of the power station will also see carbon capture work when they are refurbished.

Additionally, Estevan still has mining and oil, he pointed out.

In mid-2013 PTI Group opened its 350bed Boundary Lodge, a camp a few miles northeast of the city. Thatâ&#x20AC;&#x2122;s in addition to the 200-bed ATCO Estevan Lodge which has been in place for several years. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re happy we do have the camps if things

get tight,â&#x20AC;? Ludwig said.

The city is also working with the Saskatchewan Energy Training Institute on a student housing project which would allow for more full-time students.

The municipal involvement will likely be along the lines of providing land for the project. â&#x20AC;&#x153;Thatâ&#x20AC;&#x2122;s what weâ&#x20AC;&#x2122;re considering, land, a couple acres,â&#x20AC;? he said. â&#x20AC;&#x153;We havenâ&#x20AC;&#x2122;t ruled out the lot beside (SETI).â&#x20AC;?

However, doing so would reduce the cityâ&#x20AC;&#x2122;s inventory of serviced industrial land.

And while fancy homes are being built around Estevan, there are still those who canâ&#x20AC;&#x2122;t afford a place to sleep, even if they have a job.

The Salvation Army and United Church have come together to provide a shelter for those people. â&#x20AC;&#x153;They have really come to the forefront to help the city of Estevan out,â&#x20AC;? he said. â&#x20AC;&#x153;The people at the lower-low income strata have no place to go. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s unfortunate, but in any city our size, we have these people, who are otherwise sleeping in ATMs or vehicles.

Itâ&#x20AC;&#x2122;s there and we have to upfront about it.â&#x20AC;?

The shelter has been supported by donations to the two churches. The city supplies showers at the leisure centre.

Asked if the city should take more of a role in addressing this, Ludwig said. â&#x20AC;&#x153;Housing is a provincial responsibility. We feel we have to help.â&#x20AC;?

One avenue may be reserving units in the proposed SETI project.

Thereâ&#x20AC;&#x2122;s a possibility of using a few units for sheltering battered women, too.

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&+,3 KRXVHV Ă&#x20AC;YH /OR\G UHQWHUV Â&#x201E; By Geoff Lee Lloydminster â&#x20AC;&#x201C; A phone call from the city of Lloydminster on Jan. 14 turned five renters into owners of new condo townhouses priced at $189,900 with their down payment of just $2,500.

The lucky five were selected by a city committee among 30 applicants for a Community Housing Initiative Program (CHIP) affordable housing pilot project.

CHIP is â&#x20AC;&#x153;a mutual investment and partnership that will enable individuals and families to achieve home ownershipâ&#x20AC;? according to Patrick Lancaster, general manager of community and cultural services. â&#x20AC;&#x153;There is definitely potential for the CHIP program to run again,â&#x20AC;? he told Pipeline News shortly after the application deadline on Dec. 16. â&#x20AC;&#x153;Many of the folks that applied for the program are coming from situations where they are facing some real challenges to find a home in Lloydminster. â&#x20AC;&#x153;Everyone who applied is in a rental situation right now. â&#x20AC;&#x153;Because this a granting program and there is a financial need component to it, we donâ&#x20AC;&#x2122;t want to have their names distributed.â&#x20AC;?

A notification will be posted on the city website.

CHIP applicants are required to successfully qualify for a mortgage as well as demonstrate their involvement in the community through volunteerism.

An adjudicating committee appointed by the city manager decides which applicants best meet the qualifying criteria.

The first CHIP home recipients will move into their 838 sq. ft. two-storey condo units this spring in the Braehill development in Lloydminsterâ&#x20AC;&#x2122;s Larsen Grove neighbourhood on the Saskatchewan side of the city.

Each CHIP townhouse comes with appliances and features a fully developed basement and a landscaped yard.

The fixtures and

finishes were pre-determined by the builder to cut the cost of the CHIP units.

CHIP is a public private partnership (P3) between the city of Lloydminster, the Saskatchewan Affordable Home Ownership Program (AHOP) and business partners, Glencoe Developments Inc., Musgrave Agencies Ltd., and Synergy Credit Union.

The P3 project partners are funding the bulk of the required $10,521 down payment for each unit through various means including grants, fundraising and donations. â&#x20AC;&#x153;With property taxes and condo fees and what we estimate the mortgage is, the cost per month is about $1,131â&#x20AC;? said Lancaster. â&#x20AC;&#x153;That is pretty close to what a lot of folks are paying for rent right now. â&#x20AC;&#x153;Eliminating the down payment barrier and also moving into a home where their mortgage payment wouldnâ&#x20AC;&#x2122;t be much more than what they are paying for rent â&#x20AC;&#x201C; that was ideal for a lot of folks. â&#x20AC;&#x153;These people who are renting will become homeowners. Thatâ&#x20AC;&#x2122;s going to free up five rental spots,â&#x20AC;? added Lancaster. â&#x20AC;&#x153;As we transition people from rental properties into home ownership that opens up those rental positions.â&#x20AC;?

Lancaster was pleased by the number of applications submitted by local and area renters seeking to transition from renting to home ownership in the first year of CHIP. â&#x20AC;&#x153;For a pilot project, we feel thatâ&#x20AC;&#x2122;s a pretty good turnout. We are pretty happy that everyone took the time to do the applications and get them into us,â&#x20AC;? he said. â&#x20AC;&#x153;We got a variety of applications from kind of across the board.

Some were definitely oil and gas related. It was pretty broad â&#x20AC;&#x201C; all circles and â&#x20AC;&#x2DC;walks of lifeâ&#x20AC;&#x2122; were applying for the program.â&#x20AC;?

Four of the five condos in the CHIP program that are AHOP funded with the endorsement of Saskatch-

ewan Housing Corporation have a household income ceiling of $74,000.

One of the units is not subject to the AHOP financial eligibility requirements in order to accommodate applicants with unique circumstances.

That unit is specifically funded through the city and the founding private business partners with no maximum salary cap. â&#x20AC;&#x153;There may be someone in a special circumstance â&#x20AC;&#x201C; maybe they make a little bit more than the $74,000, and maybe there is a reason why they should be given special consideration because of their circumstances,â&#x20AC;? explained Lancaster. â&#x20AC;&#x153;We wanted to make sure we had some flexibility with this first run of the program. â&#x20AC;&#x153;After we evaluate the program, we hope to bring on more community partners. Weâ&#x20AC;&#x2122;d love to see more involvement from the community.â&#x20AC;?

The CHIP pilot makes Lloydminster eligible for Saskatchewanâ&#x20AC;&#x2122;s Head Start on a Home program.

Head Start is a P3 housing program among developers, municipalities, the Saskatchewan government and credit unions to create midpriced housing options. â&#x20AC;&#x153;That will put more accessible homes into the marketplace if they take advantage of the program,â&#x20AC;? said Lancaster. â&#x20AC;&#x153;Thereâ&#x20AC;&#x2122;s definitely social value in home ownership â&#x20AC;&#x201C; the benefits and stability that it provides to a family to have

a home â&#x20AC;&#x201C; itâ&#x20AC;&#x2122;s beyond measure. â&#x20AC;&#x153;Talking to the participants and seeing their optimism at this opportunity that they could potentially become home owners and what a difference that would make in their lives â&#x20AC;&#x201C;itâ&#x20AC;&#x2122;s really unbelievable. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s very exciting,â&#x20AC;? said Lancaster, who is a new home owner

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Bakken-fueled housing shortage means fewer full-time students Â&#x201E; By Brian Zinchuk Estevan â&#x20AC;&#x201C; The continual shortage of housing in Estevan is impacting not only the ability of local businesses to grow, but also the Saskatchewan Energy Training Institute (SETI).

That was the message of Dion McGrath, president and CEO of the Southeast Regional College, parent organization of SETI, during a presentation to the Estevan Chamber of Commerce on Jan. 8.

The monthly luncheon was held at SETI. The housing crunch has led to a dramatic decline in full-time students for Southeast Regional College, he said, leading to underutilization of their facilities. Effectively, if students canâ&#x20AC;&#x2122;t find someplace to stay, there wonâ&#x20AC;&#x2122;t be students attending.

McGrath kicked off the presentation by discussing the impact the Bakken play has had on the region and the province, and tying it into the housing issue.

The college commissioned two consulting firms to look at their issues â&#x20AC;&#x201C; one, McNair Business Development, to look at the impact of the Bakken, and a second, Preferred Choice of Saskatoon, to look at the resulting impact on housing.

McGrath said that in 2012 alone, 6.5 per cent of total gross domestic product in Saskatchewan came from the Bakken. That included $764 million in total provincial revenue. There were 8,600 jobs involved, and $525 million in salaries related to those jobs.

Since 2008 almost $4 billion in revenue has gone to the province as a result, he said.

That was the inflection year, when the trend lines for housing in Estevan started to diverge from the rest of the province and in some examples, Canada.

McGrath said, â&#x20AC;&#x153;2008 was the first peak of activity, and itâ&#x20AC;&#x2122;s really carried on since then.â&#x20AC;?

Dion McGrath, president and CEO of the Southeast Regional College, stressed that a shortage of housing means Ć?Ĺ&#x161;Ä&#x201A;Ć&#x152;Ć&#x2030;ĹŻÇ&#x2021; Ć&#x152;Ä&#x17E;Ä&#x161;ĆľÄ?Ä&#x17E;Ä&#x161; ĨƾůůͲĆ&#x;ĹľÄ&#x17E; Ć?Ć&#x161;ĆľÄ&#x161;Ä&#x17E;ĹśĆ&#x161; ŜƾžÄ?Ä&#x17E;Ć&#x152;Ć? ĨŽĆ&#x152; Ć&#x161;Ĺ&#x161;Ä&#x17E; Ä?Žůlege. Photo by Brian Zinchuk

Jobs canâ&#x20AC;&#x2122;t be filled due to the housing shortage, he noted. More housing would mean more people could be employed. â&#x20AC;&#x153;Will that unleash new growth? The answer is yes.â&#x20AC;?

Preferred Choice took a close look at the Canadian Mortgage and Housing Corporationâ&#x20AC;&#x2122;s data for the Estevan area. The number of rental units has remained relatively constant since October 2001.

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Vacancy rates spiked at 19.6 per cent in October 2002, and flatlined to zero in October 2008.

Four years later, in 2012, it was just 0.6 per cent.

In October 2013, at 1.8 per cent, McGrath pointed out that number equates to just nine units being available on the market. There were also zero one- and two-bedroom suites available.

As vacancies have gone down, so, too, has the number of full-time students with the college. It has been around 150 students, and is now around 60. â&#x20AC;&#x153;Our full-time students (number) is almost a mirror of the vacancy rate,â&#x20AC;? McGrath said. â&#x20AC;&#x153;We have an accessibility problem with housing. We have a severe shortage of rental units in Estevan and the trend isnâ&#x20AC;&#x2122;t getting better.â&#x20AC;? â&#x20AC;&#x153;Housing isnâ&#x20AC;&#x2122;t just a college problem,â&#x20AC;? he said.

The larger community has an affordable housing problem. Businesses and industry canâ&#x20AC;&#x2122;t attract people to Estevan because of it, and therefore they have a hard time filling jobs.

McGrath noted there is a shortage of childcare as well. â&#x20AC;&#x153;To be successful, as a college, we needed to address the housing issue,â&#x20AC;? McGrath said. It became clear he wasnâ&#x20AC;&#x2122;t talking just about the general housing issue, but a specific project.

He called up Mayor Roy Ludwig in July to discuss the issue. In a separate interview, Ludwig noted the city is considering contributing land to a housing project. â&#x20AC;&#x153;This issue is that important to the college that itâ&#x20AC;&#x2122;s willing to do the due diligence,â&#x20AC;? he said, noting they would reach out to the provincial and federal governments as well as the private sector. â&#x20AC;&#x153;To date, no one has said this is a dumb idea,â&#x20AC;? he noted.

The college is taking a look at the nuts and bolts, such as how many units are needed, and specifically how much student housing is needed.

The college wants to pique interest in developing affordable housing. McGrath said they want significant private sector and community backing before talking to governments. â&#x20AC;&#x153;I think thereâ&#x20AC;&#x2122;s a growth opportunity for multiple stakeholders,â&#x20AC;? he said. â&#x20AC;&#x153;The Bakken and housing issues arenâ&#x20AC;&#x2122;t going away any time soon.â&#x20AC;?

McGrath is thinking along the lines of a 100unit project, of which perhaps 50 might be for student housing. That would allow the college to open up more programs, like perhaps heavy duty mechanic.

The city it looking at dedicating several units for various purposes, and the hope is that perhaps some larger corporations might pick up a few units for their own purposes, such as temporary worker housing.

Estevan needs about 400 rental units over the next 10 years, and a further 1,500 owned units over the same time period, McGrath said.

During the question and answer period, Jim Wilson, owner of Wil-Tech Industries, pointed out, â&#x20AC;&#x153;Youâ&#x20AC;&#x2122;re showing what most of us have known for a decade.â&#x20AC;?

With the clean coal project wrapping up, he said there is a big worry about overbuilding. â&#x20AC;&#x153;We donâ&#x20AC;&#x2122;t want to overbuild,â&#x20AC;? he said.

In regards to SaskPowerâ&#x20AC;&#x2122;s initiatives on further clean coal projects, McGrath said, â&#x20AC;&#x153;Iâ&#x20AC;&#x2122;m going to rely on SaskPowerâ&#x20AC;&#x2122;s wisdom. â&#x20AC;&#x153;Yeah, there might be another clean coal opportunity coming.â&#x20AC;?

However, the Bakken is what they are betting on, and its ability to continue to spur more growth for a further 10 to 15 years.

Jarred Dumaine from Brent Gedak Welding noted, â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s frustrating as an employer to tell people to find a place to live.â&#x20AC;?

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PIPELINE SECTION B NEWS $20M Petroleum Centre takes shape February 2014

Â&#x201E; By Geoff Lee Lloydminster â&#x20AC;&#x201C; It could be called the shroud of Lloydminster.

Crews from Fillmore Construction have wrapped the frame of the new Petroleum Centre with a weatherproof covering, but there is little mystery about what is going on behind the curtains.

Lakeland College energy director Kara Johnston, energy chair, Robert Jago and board of governors chair Milt Wakefield will gladly fill anyone in on the construction progress behind the scenes at the Lloydminster campus. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re pretty excited. The cement is poured.

We can see the bones of the structure now which is pretty awesome,â&#x20AC;? said Johnston on a cold day in early January. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s generating lots of excitement at the college and in the community as well.â&#x20AC;?

Thereâ&#x20AC;&#x2122;s a big, tall two and a half storey open space with an arching roof in the middle of the structure not yet wrapped that generates the most questions. â&#x20AC;&#x153;We will have five boilers in there. The middle of the structure will be glass and itâ&#x20AC;&#x2122;s two-plus storeys,â&#x20AC;? said Johnston. â&#x20AC;&#x153;We need that height to accommodate the size of the boilers going in as well as the heat.â&#x20AC;?

The lab will also serve as a combined power plant, providing electricity and heat for the Lloydminster campus. The cavernous space for the energy lab will include a fractional distillation tower that will stand taller than the rest of the two storey structure.

There will be four types of boilers in the lab space â&#x20AC;&#x201C; once through, D-type watertube, O-type watertube and firetube.

The open area will also house four turbines, generator sets, dearators, condensers and other equipment pertaining to heavy oil training. â&#x20AC;&#x153;It will be very similar to the equipment we have in our existing lab only doubled â&#x20AC;&#x201C; much bigger,â&#x20AC;? said Jago.

The Petroleum Centre will also be equipped with a steam assisted gravity drainage or SAGD software programs. â&#x20AC;&#x153;It will be state of the art training for students who are going out there and operate equipment,â&#x20AC;? said Jago. â&#x20AC;&#x153;Students will be able to transition from this facility right into industry with shorter training periods. Thatâ&#x20AC;&#x2122;s cost savings to industry.â&#x20AC;?

Crews were getting set to pour concrete in an enclosed area that will house six training rooms for future Heavy Oil Operations Technician (HOOT) and Heavy Oil Power Engineering (HOPE) students.

The 2,400 sq. metre building will also have two 50-seat simulation theatres, change rooms, a common area and office space. The building will be completed this summer

dĹ&#x161;Ĺ?Ć? Ç Ĺ?Ä&#x161;Ä&#x17E; Ĺ˝Ć&#x2030;Ä&#x17E;Ĺś Ć&#x161;Ç Ĺ˝ Ä&#x201A;ĹśÄ&#x161; Ĺ&#x161;Ä&#x201A;ůĨ Ć?Ć&#x161;Ĺ˝Ć&#x152;Ä&#x17E;Ç&#x2021; Ć?Ć&#x2030;Ä&#x201A;Ä?Ä&#x17E; Ç Ĺ?ĹŻĹŻ Ĺ&#x161;ŽƾĆ?Ä&#x17E; Ä&#x201A; Ć&#x161;Ä&#x201A;ĹŻĹŻ Ä&#x161;Ĺ?Ć?Ć&#x;ĹŻĹŻÄ&#x201A;Ć&#x;ŽŜ Ć&#x161;Ĺ˝Ç Ä&#x17E;Ć&#x152; Ä&#x201A;ĹśÄ&#x161; ÄŽÇ&#x20AC;Ä&#x17E; Ć&#x161;Ç&#x2021;Ć&#x2030;Ä&#x17E;Ć? ŽĨ Ä?Ĺ˝Ĺ?ĹŻÄ&#x17E;Ć&#x152;Ć? Ĺ?Ĺś Ć&#x161;Ĺ&#x161;Ä&#x17E; ĹŻÄ&#x201A;Ä? Ć&#x2030;Ĺ˝Ć&#x152;Ć&#x;ŽŜ ŽĨ Ć&#x161;Ĺ&#x161;Ä&#x17E; ĹśÄ&#x17E;Ç WÄ&#x17E;Ć&#x161;Ć&#x152;ŽůÄ&#x17E;ƾž Ä&#x17E;ĹśĆ&#x161;Ć&#x152;Ä&#x17E; Ä?Ä&#x17E;Ĺ?ĹśĹ? Ä?ĆľĹ?ĹŻĆ&#x161; Ä&#x201A;Ć&#x161; Ć&#x161;Ĺ&#x161;Ä&#x17E; >ĹŻĹ˝Ç&#x2021;Ä&#x161;ĹľĹ?ĹśĆ?Ć&#x161;Ä&#x17E;Ć&#x152; Ä?Ä&#x201A;ĹľĆ&#x2030;ĆľĆ? Ä?Ç&#x2021; &Ĺ?ůůžŽĆ&#x152;Ä&#x17E; ŽŜĆ?Ć&#x161;Ć&#x152;ĆľÄ?Ć&#x;ŽŜÍ&#x2DC; dĹ&#x161;Ĺ?Ć? Ä&#x17E;Ä&#x201A;Ć?Ć&#x161; ĨÄ&#x201A;Ä?Ĺ?ĹśĹ? ĨÄ&#x201A;Ä?Ä&#x201A;Ä&#x161;Ä&#x17E; Ç Ĺ?ĹŻĹŻ ĨÄ&#x17E;Ä&#x201A;Ć&#x161;ĆľĆ&#x152;Ä&#x17E; Ä&#x201A; Ĺ&#x161;Ĺ?Ĺ?Ĺ&#x161;ͲÄ&#x17E;ĸÄ?Ĺ?Ä&#x17E;ĹśĆ&#x161; Ĺ?ĹŻÄ&#x201A;Ć?Ć? Ć?Ĺ˝ Ć&#x161;Ĺ&#x161;Ä&#x17E; ĹŻÄ&#x201A;Ä? Ç Ĺ?ĹŻĹŻ Ä?Ä&#x17E; Ç&#x20AC;Ĺ?Ć?Ĺ?Ä?ĹŻÄ&#x17E; Ć&#x161;Ĺ˝ Ć&#x2030;Ä&#x17E;Ĺ˝Ć&#x2030;ĹŻÄ&#x17E; Ç Ä&#x201A;ĹŻĹŹĹ?ĹśĹ? Ĺ˝Ć&#x152; Ä&#x161;Ć&#x152;Ĺ?Ç&#x20AC;Ĺ?ĹśĹ? Ä?Ç&#x2021; Ć&#x161;Ĺ&#x161;Ä&#x17E; Ä?ĆľĹ?ĹŻÄ&#x161;Ĺ?ĹśĹ?Í&#x2DC; Photos Ä?Ç&#x2021; 'Ä&#x17E;Žč >Ä&#x17E;Ä&#x17E;

when the task of installing the boilers begins in preparation for the first intake of students in 2015.

Faculty and staff need time to learn how to fully operate the lab safely before teaching students. â&#x20AC;&#x153;Safety is a paramount concern to us. I am actually kind of pleased about the timing,â&#x20AC;? said Johnston. â&#x20AC;&#x153;It means come 2015, we will be taking in additional students and we will know that lab inside

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)DFXOW\ QHHGHG IRU LQVWUXFWLRQ W Page B1 Wakefield confirmed the estimated cost has risen from $17 million to just over $20 million as normal cost increases on a large project.

He said Lakeland continues to seek donations from industry to fully fund the Petroleum Centre and its equipment. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re working with a lot of them and they are all pretty interested. Weâ&#x20AC;&#x2122;ve had several that came in with a million dollar grant or donation for the building,â&#x20AC;? he said.

Major financial support has come from Cenovus Energy, Allan Markin, Canadian Natural Resources Limited, Archer Daniels Midland Company, Husky >Ä&#x201A;ĹŹÄ&#x17E;ĹŻÄ&#x201A;ĹśÄ&#x161; ŽůůÄ&#x17E;Ĺ?Ä&#x17E; Ä&#x17E;ĹśÄ&#x17E;Ć&#x152;Ĺ?Ç&#x2021; Ä?Ĺ&#x161;Ä&#x201A;Ĺ?Ć&#x152; ZĹ˝Ä?Ä&#x17E;Ć&#x152;Ć&#x161; :Ä&#x201A;Ĺ?Ĺ˝ Ä?ŽŜÄ&#x161;ĆľÄ?Ć&#x161;Ä&#x17E;Ä&#x161; Ä&#x201A; Energy, The Gwyn Ć&#x161;ŽƾĆ&#x152; ŽĨ Ć&#x161;Ĺ&#x161;Ä&#x17E; Ć?Ĺ&#x161;Ć&#x152;ŽƾÄ&#x161;Ä&#x17E;Ä&#x161; Ä?ŽŜĆ?Ć&#x161;Ć&#x152;ĆľÄ?Ć&#x;ŽŜ Ć?Ĺ?Ć&#x161;Ä&#x17E; ŽĨ Ć&#x161;Ĺ&#x161;Ä&#x17E; ĹśÄ&#x17E;Ç Î¨ĎŽĎŹ Morgan and Patricia ĹľĹ?ĹŻĹŻĹ?ŽŜ WÄ&#x17E;Ć&#x161;Ć&#x152;ŽůÄ&#x17E;ƾž Ä&#x17E;ĹśĆ&#x161;Ć&#x152;Ä&#x17E; Ĺ?Ĺś Ä&#x17E;Ä&#x201A;Ć&#x152;ĹŻÇ&#x2021; :Ä&#x201A;ŜƾÄ&#x201A;Ć&#x152;Ç&#x2021;Í&#x2DC; dĹ&#x161;Ä&#x17E; Ć&#x2030;Ć&#x152;Ĺ˝Ć&#x161;Ä&#x17E;Ä?Ć&#x;Ç&#x20AC;Ä&#x17E; Trottier Foundation, Ç Ä&#x17E;Ä&#x201A;Ć&#x161;Ĺ&#x161;Ä&#x17E;Ć&#x152; Ä?Ĺ˝Ç&#x20AC;Ä&#x17E;Ć&#x152;Ĺ?ĹśĹ? Ä&#x201A;ĹŻĹŻĹ˝Ç Ć? Ä?Ć&#x152;Ä&#x17E;Ç Ć? ĨĆ&#x152;Žž &Ĺ?ůůžŽĆ&#x152;Ä&#x17E; ŽŜĆ?Ć&#x161;Ć&#x152;ĆľÄ?Ͳ Keyera Corporation, Ć&#x;ŽŜ Ć&#x161;Ĺ˝ Ç Ĺ˝Ć&#x152;ĹŹ Ć&#x161;Ĺ&#x161;Ć&#x152;ŽƾĹ?Ĺ&#x161;ŽƾĆ&#x161; Ć&#x161;Ĺ&#x161;Ä&#x17E; Ç Ĺ?ĹśĆ&#x161;Ä&#x17E;Ć&#x152;Í&#x2DC;

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Government of Alberta, and Western Economic Diversification Canada. â&#x20AC;&#x153;Most of the money now is coming in smaller amounts, but thereâ&#x20AC;&#x2122;s a lot more of it,â&#x20AC;? said Wakefield. â&#x20AC;&#x153;So weâ&#x20AC;&#x2122;re really looking forward to having this thing up and away. Itâ&#x20AC;&#x2122;s going to be exciting. Weâ&#x20AC;&#x2122;re pretty proud of that.â&#x20AC;?

The new Petroleum Centre could also boost full-time energy program enrolment to over 160 students in 2015 â&#x20AC;&#x201C; if enough instructors are available. â&#x20AC;&#x153;One of our big issues at the college is attracting faculty. We have to have the faculty to instruct those students,â&#x20AC;? said Johnston. â&#x20AC;&#x153;There is a waiting list of students already for the fall of 2014. We are accepting students for 2015. â&#x20AC;&#x153;Our numbers are

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dependent on recruiting faculty for our program.

We are actively recruiting through industry contacts. That is going to be a very big issue for us moving forward. â&#x20AC;&#x153;Yes, we will have the capacity, but will we have the faculty to deliver the program?â&#x20AC;?

There could be up to 250 students in 2015 taking into account new summer steam labs for power engineering students in the existing energy lab that is equipped with teaching boilers. â&#x20AC;&#x153;We have five steam labs scheduled (this summer) and they are all booked solid. We have a waiting list now,â&#x20AC;? said Johnston. â&#x20AC;&#x153;Thereâ&#x20AC;&#x2122;s another 60 students on top of enrolment numbers.â&#x20AC;?

Currently 73 full-time students are enrolled in energy programming in Lloydminster.

This year up to 400 students are studying 4th class and 3rd class powering engineering programs online on weekends and evenings.

Part A of 2nd class power engineering is also taught online in accordance with Alberta Boilers Safety Association requirements.

Johnston said there is no doubt the ongoing construction is generating even more interest in energy programming in weeks and months ahead. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s generating a lot of excitement with the community and the potential students â&#x20AC;&#x201C; to be in a state-of-the-art lab and to work in a facility

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like that,â&#x20AC;? she said. â&#x20AC;&#x153;When they graduate, it decreases their training time on the job.

Itâ&#x20AC;&#x2122;s definitely an exciting time for the college and for our energy program.â&#x20AC;?

Currently, first year HOOT and HOPE students are on industry work experiences for a six week period. â&#x20AC;&#x153;Industry partners have once again stepped up to the plate and taken approximately 40 students,â&#x20AC;? said Johnston. â&#x20AC;&#x153;They are really excited to be out in the field and put their knowledge to use a little bit. â&#x20AC;&#x153;They will come back to us with renewed energy and a little more excited about their chosen profession.â&#x20AC;?

Second year 3rd class HOPE students are hunkered down in their required lab work.

Lakeland has just started up its third intake of Onion Lake First Nation students enrolled in an introduction to oil and gas course delivered at the reserve north of Lloydminster. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;ve done a bit of curriculum enhancement. We will be piloting that as well,â&#x20AC;? said Johnston. â&#x20AC;&#x153;We are excited for 2014. We have lots of exciting prospects on the horizon. We have a really great faculty right now. We have a really strong team. â&#x20AC;&#x153;We are really dedicated to student success and ensuring our students are going out to industry and being successful.â&#x20AC;?

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(VWHYDQ ODXQFKHV LWV Ă&#x20AC;UVW (QHUJ\ ([SR Speakers include Tim McMillan, minister responsible for Energy and Resources; Keith Schaefer, editor and publisher of Oil & Gas Investments; Neil Wildgust, chief project officer of the Petroleum Technology Research Centre; Max Ball, manager of Clean Coal Technologies for SaskPower; Kristen Marcia, co-founder of DEEP Earth Energy Production Corporation (a geothermal operation); Mike Crabtree, vice-president of energy with the Saskatchewan Research Council; and Melinda Yurkowski, assistant chief geologist of the province and head of petroleum geology at the Saskatchewan Subsurface Geological Laboratory.

The event will kick off with a supper on June 11. The next day will see speakers throughout the day, starting at breakfast.

Noting that the Redvers Oil Showcase is also held in the off-year from the Weyburn oil show, Cyrenne said this event will look at energy in a broader context. Other events focus exclusively on oil and gas, he pointed out.

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Â&#x201E; By Brian Zinchuk Estevan â&#x20AC;&#x201C; The Estevan Chamber of Commerce is busy organizing the Estevan Energy Expo, scheduled for June 11-13. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s not just oil, but the broader energy industry,â&#x20AC;? said Michel Cyrenne, executive director of the Estevan Chamber of Commerce. That includes coal, power generation and geothermal initiatives.

The event is being held in the off-year from the Saskatchewan Oil and Gas Show in Weyburn, the biggest event of its type for the industry in southeast Saskatchewan. The idea is to run on a bi-annual basis after that.

The event will be held in Affinity Place, formerly known as Spectra Place, Estevanâ&#x20AC;&#x2122;s primary arena. The arena will be divided in half, with speakers and meals at one end, and exhibitors on the other. Organizers are hoping to attract around 40 exhibitors.

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7KH ELJJHVW EHW RQ DFFRPPRGDWLRQV Â&#x201E; By Brian Zinchuk Carnduff â&#x20AC;&#x201C; When the Bakken boom really started to get going, Gary Brar started building hotels â&#x20AC;&#x201C; a lot of them. Six Western Star hotels are complete, and more are on

the way.

Gary Brar and his brother Shir, partners in the venture, have by far made the biggest bet on accommodations in southeast Saskatchewan. Not counting new hotels in the works,

theyâ&#x20AC;&#x2122;ve already invested approximately $45 million in the first six properties, creating 70 permanent jobs in the process. So far, that bet is working out, because they are continuing to invest.

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The hotels have opened in rapid progression. Carlyle was first, in February 2012, followed by Redvers in July 2012, in time for the Enbridge Bakken expansion pipeline project. Esterhazy

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opened January 2013, and Stoughton followed in February 2013.

Those first four hotels were branded as â&#x20AC;&#x153;Western Star Inn & Suites.â&#x20AC;? The next two are â&#x20AC;&#x153;Western Star All Suites Hotels.â&#x20AC;? Carnduff opened in November 2013, and Melita, Man., opened Jan. 15.

Pipeline News spoke with Gary Brar in restaurant area of the Carnduff location on Jan. 15. The restaurant and lounge is not open yet, but thatâ&#x20AC;&#x2122;s coming.

Brarâ&#x20AC;&#x2122;s given name is Gurinder, but he goes

by Gary. He was born in India, and came to Canada in 1989 at the age of 17. His wife and two sons, 13 and 14, maintain a home base in Calgary. â&#x20AC;&#x153;They come in the summertime and help me out,â&#x20AC;? Brar said.

Shir, his wife and three children, are based in Medicine Hat. Shir handles more of the construction element, while Gary takes care of getting the new properties open.

Theyâ&#x20AC;&#x2122;ve just recently hired a general manager, Colin Vin-

cent, to oversee all the Western Star properties.

Carla Eagan is operation manager. George Gillis was recently added to look after sales and marketing. He has years of experience working in the oilpatch, including driving truck and dispatching. â&#x20AC;&#x153;I was 26 when we started,â&#x20AC;? Brar said.

Their first three hotels were renovations in Medicine Hat, Alta, Fernie and Quesnel, B.C. Since then they have built several more hotels in Alberta and British Columbia.

Gary and his brother came to Canada with $20 in their pocket and big dreams. â&#x20AC;&#x153;The values we try to instill in our children is in business you have to have dreams, you have to believe in your dreams and you achieve your dreams,â&#x20AC;? Brar said.

Asked what got the ball rolling in Saskatchewan, he said it was meeting with different companies and finding out what the needs were. He had been working on projects in Estevan at the time.

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707,305, 5,>: -LIY\HY` W Page B4 Brar noted they are smaller properties, at 64 rooms each, and in smaller markets. That has resulted in good occupancy and good feedback.

Each hotel employs approximately 10 people. Carnduff and Melita will have an additional seven to 10 people due to the lounge and restaurant in each facility.

There has been some difficulty in finding staff, but not overly, according to Brar. A new facility is enticing. Some employees are temporary foreign workers from Italy, Spain, Greece, India, England and Ireland. In Stoughton, Esterhazy and Carnduff, the staff members are primarily local people.

Of the first four properties, three are strung along Highway 13. Carlyle was chosen first due to the commute distance from Estevan. Redvers and Stoughton branched out from that. Of those three hotels, Brar said probably 85 per cent of the clientele is oilfieldrelated. â&#x20AC;&#x153;Thatâ&#x20AC;&#x2122;s the busiest area, with the most activity,â&#x20AC;? Brar said. â&#x20AC;&#x153;A lot of companies said they would bid on jobs, but there were no accommodations, and it prevented them from bidding in (certain) areas,â&#x20AC;? Eagan said.

Esterhazy was meant to take advantage of potash growth in that town, but it hasnâ&#x20AC;&#x2122;t been as successful as the other properties. New properties are all intended to be â&#x20AC;&#x153;all suites.â&#x20AC;?

Thereâ&#x20AC;&#x2122;s been continual improvements with each new hotel.

This has been seen at first in the gym size, then with the two most

recent properties, substantially larger rooms, and kitchens in all the rooms.

Carnduff and Melita have also been built with 50-seat restaurants and lounges.

They are meant primarily to service guests, but will eventually be open to the public.

Plenty of big truck parking is another key to success, and many oilfield operations need room to park their trucks overnight.

In addition to their own Western Star brand, the Brars are building a Hampton Inn & Suites in Regina.

The location is near the Husky truck stop on the east side, just off Victoria Avenue/Highway 1. When they first launched the Western Star line, brand recognition wasnâ&#x20AC;&#x2122;t as important, because few people would be expected to using national booking services for them. But for a large centre like Regina, carrying a national â&#x20AC;&#x2DC;flagâ&#x20AC;&#x2122; or brand, is important.

Brar noted the name recognition and consistency of the brand are more important in those larger markets. The Hampton will have 101 rooms.

That said, Eagan said of the Western Star brand, â&#x20AC;&#x153;When we started in Carlyle, it was not a recognized name. Now with six locations, our name is a brand and people recognize it.â&#x20AC;?

Two more hotels are on the horizon, but where they will be has not been announced yet.

They have their own crew that has been building these new properties. â&#x20AC;&#x153;Our own guys,â&#x20AC;? Brar said. â&#x20AC;&#x153;We have close to 20 in construction. Then we have sub-trades too.â&#x20AC;?

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They typically go with the same subtrades, who are from Saskatchewan and Alberta. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re going to keep on building,â&#x20AC;? Brar said. Thereâ&#x20AC;&#x2122;s a five-year plan in place, to start and finish two hotels per year in Saskatchewan and Manitoba.

They are not currently looking at the Alberta market. â&#x20AC;&#x153;With our experience in Alberta through the boom, all businesses providing services to the oil and gas industry increased their prices to take advantage of the boom. In experiencing this, it inspired us to create a franchise that could provide a large room, great service, hot breakfast and an overall quality service for a reasonable price. Because we have maintained low cost for building and operations we are able to provide this to the oil companies as well as leisure guests in all our properties. We would be disappointed if the oil companies throughout Saskatchewan were unable to continue drilling because the cost is unmanageable. In Alberta is was increasingly difficult for companies to stay within their budget therefore, forced to work elsewhere. We are contributing to a small cost the companies incur but feel every dollar counts in maintaining a strong market,â&#x20AC;? Brar concluded.

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6HHNLQJ WR RIIHU Ă&#x20AC;YH VWDU VHUYLFH Â&#x201E; By Brian Zinchuk Carnduff â&#x20AC;&#x201C; When one thinks of high-class service, the hotels of Dubai would be at the top of the list. And itâ&#x20AC;&#x2122;s from there that the Western Star Inn & Suites group of hotels has recruited its new general manager, Colin Vincent.

Vincent will manage the four

Western Star Inn & Suites and two Western Star All Suites Hotels. He will be based in Carnduff.

Vincent was born in India. He spent many years working in Dubai at various five-star properties. His wife, Wendy, will head up the housekeeping for the chain. â&#x20AC;&#x153;I was borne in India, just outside

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Colin Vincent used to work in Dubai hotels. Now he is general manager for the tÄ&#x17E;Ć?Ć&#x161;Ä&#x17E;Ć&#x152;Ĺś ^Ć&#x161;Ä&#x201A;Ć&#x152; Ć&#x2030;Ć&#x152;Ĺ˝Ć&#x2030;Ä&#x17E;Ć&#x152;Ć&#x;Ä&#x17E;Ć? Ĺ?Ĺś ^Ä&#x201A;Ć?ĹŹÄ&#x201A;Ć&#x161;Ä?Ĺ&#x161;Ä&#x17E;Ç Ä&#x201A;Ĺś and Manitoba. Photo by Brian Zinchuk

ver as well.

Carnduff is not Vancouver, but he noted that he lived in a similar small town in Dubai, 100 kilometres from the coast.

With Western Star, Vincent wants â&#x20AC;&#x153;to offer five-star service.â&#x20AC;? â&#x20AC;&#x153;The expectations are so high (in Dubai), you canâ&#x20AC;&#x2122;t imagine,â&#x20AC;? he said.

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of Mumbai,â&#x20AC;? he said.

While in Dubai Vincent was witness to one of the largest building booms in modern history. Dubai has had the highest concentration of construction cranes on the planet for several years. â&#x20AC;&#x153;The road I was based on had one high rise. The next hotel was 50 kilometres away with nothing in the middle,â&#x20AC;? he said.

Thatâ&#x20AC;&#x2122;s now filled up.

All those cranes came to a standstill during the recession, however, but they are back in action.

Dubai, like many Gulf States, relies heavily on foreign workers. But you can forget about ever becoming a citizen there. â&#x20AC;&#x153;You cannot get a citizenship there, even if youâ&#x20AC;&#x2122;re born and die there,â&#x20AC;? Vincent said. Expatriates are essentially second class citizens.

For the last nine years he has wanted to come to Canada, where their son trained as mechanical engineer. He is an aircraft engineer in Vancouver.

He and his wife arrived in Canada on Dec. 8, and are on a work permit. He would like to become a landed immigrant and then a citizen.

His brother and sister are in Vancou-

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Saskatoon â&#x20AC;&#x201C; The recent expansion of the Canstay Motel west of Weyburn was a follow-on project for 3twenty Modular, the Saskatoon-based company that has gained fame for using shipping containers for a variety of unconventional uses.

The company has changed its name to 3twenty Modular versus the previous 3Twenty Solutions to better reflect what they are doing, according to CEO Bryan McCrea.

In the past six months, 3Twenty has been doing a lot of work in the Alberta oilpatch, in part due to cuts and delays in the mining industry. Fort McMurray and Hardisty, with its crude-by-rail developments, have been hotspots. There have also been some accommodations built for the Lloydminster area.

A rental division was started a year ago, and itâ&#x20AC;&#x2122;s been busy. They have 70 modules in the rental fleet now, including offices and wash cars (washrooms).

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0LFURWHO RSHQV :H\EXUQ SURSHUW\ Â&#x201E; By Brian Zinchuk Weyburn â&#x20AC;&#x201C; Microtel Inn & Suites by Wyndham opened its newest facility in Weyburn recently, part of a string of hotels under construction. â&#x20AC;&#x153;We opened our doors to the general public on Jan. 2,â&#x20AC;? said Andrew Arksey, general manager for Weyburn.

Arksey had initially looked after the Estevan property, which was the prototype for the new Microtels. It held its grand opening in October 2012.

Construction in Weyburn started at the end of January 2013. It is located just behind the Tim Hortons, on Grace Street.

There is substantial parking in place. All of it is paved, including the semitruck area.

The hotels are nearly identical except for a few features. A reconfiguration led to three more rooms in Weyburn, bringing the total to 84. Since another property in Weyburn right next door had a pool and waterslide, those items were deleted in favour of a much larger fitness centre.

Weyburn does have a substantial hot tub in the fitness area. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;ve got a 10-person hot tub and a sauna,â&#x20AC;? Arksey said. â&#x20AC;&#x153;A lot of the oilpatch guys like the hot tub.â&#x20AC;?

The fitness area is three to four times larger than the one in Estevan. It has numerous exercise machines like ellipticals, treadmills and bikes, in addition to free weights.

The new property is four stories and has an elevator. Thereâ&#x20AC;&#x2122;s a 1,000 square foot meeting room that can be separated from the breakfast area. Free hot continental breakfast is provided.

Free Wi-Fi Internet is provided throughout the building. Thereâ&#x20AC;&#x2122;s also a 24hour business centre.

An invitation-only grand opening event is being held on Feb. 12 in conjunction with the Weyburn Chamber of Commerce After Five event.

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

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Land Auctionâ&#x20AC;&#x201D;Estevan The Estate of Mea Petterson Thursday, January 23

Farm Equipment Auctionâ&#x20AC;&#x201D;Abernethy Robert Moffat Friday, April 4

Real Estate/Acreage Auctionâ&#x20AC;&#x201D;Abernethy Robert Moffat Friday, April 4

Lg. Prem. Farm Equip. Auctionâ&#x20AC;&#x201D;Abernethy Maple Ridge Farms Ltd. Saturday, April 5

Farm Equipment Auctionâ&#x20AC;&#x201D;Weyburn Garnet and Barb Hart Friday, April 11

Farm Equipment Auctionâ&#x20AC;&#x201D;Minton Bill and Bev Tatarliov Saturday, April 12

Land Auctionâ&#x20AC;&#x201D;Minton Bill and Bev Tatarliov Saturday, April 12

Farm Equipment Auctionâ&#x20AC;&#x201D;Macoun Wilfred and Joan Messer Monday, April 14

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Farm Equipment Auctionâ&#x20AC;&#x201D;Frobisher Dave and Doreen MacCuish Tuesday, April 15

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Farm & Livestock Equip. Auctionâ&#x20AC;&#x201D;Alameda Ross and Ron Moncrief Wednesday, April 16

Farm & Livestock Equip. Auctionâ&#x20AC;&#x201D;Stoughton Maple Wind Farms Ltd. Saturday, June 7

Large Estate Auctionâ&#x20AC;&#x201D;Stoughton The Estate of Calvin Avery Sunday, y, June 8

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Farm & Livestock Equip. Auctionâ&#x20AC;&#x201D;Saltcoats Elmer Aichele Friday, June 13

Farm & Livestock Equip. Auctionâ&#x20AC;&#x201D;Weyburn Dayle and Lana Chuckry Mon., June 16

Equip.-RV-Vehicle Auctionâ&#x20AC;&#x201D;Estevan Estevan Motor Speedway Sat., June 21

Livestock Auctionâ&#x20AC;&#x201D;Estevan Estevan Rotary 4-H Tues., July 8

Farm Equipment Auctionâ&#x20AC;&#x201D;Lemberg Estate of Elmer Senft Saturday, June 14

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CanStay Motel adds rooms Â&#x201E; By Brian Zinchuk Estevan â&#x20AC;&#x201C; A year ago, a new type of motel was set up on the bald Saskatchewan prairie about 15 minutes west of Estevan. The

CanStay Motel was built out of shipping containers, manufactured by Saskatoonbased 3Twenty Solutions.

The motel was up

and running by January 2013, and it appears the experiment worked, since this past fall they have expanded their rooms by 50 per cent to 15, and added a laundry

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facility.

The CanStay is owned by Greg and

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Lynn Bryson and their son Theo. â&#x20AC;&#x153;Heâ&#x20AC;&#x2122;s here every weekend, running the show,â&#x20AC;? said Greg of Theo, who is in university. â&#x20AC;&#x153;We started with 10 suites when we opened in January 2013.

We just hit our year,â&#x20AC;?

Greg said on Jan. 2. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;ve had very little of from the oil-

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patch. Most have been with the carbon capture project,â&#x20AC;? he said. The Boundary Dam Carbon Capture Project is just over the horizon to the east of the motel, about a 15 minute drive. â&#x20AC;&#x153;The reason we built this was more because of the housing shortage.

That was the idea,â&#x20AC;? he said.

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707,305, 5,>: -LIY\HY` W Page B8 Greg works for SaskPower, having recently returned to work after a medical leave. Heâ&#x20AC;&#x2122;s retrained as a safety co-ordinator, a career which he recently obtained a diploma in occupational health and safety. â&#x20AC;&#x153;We thought there would be more from the patch,â&#x20AC;? he said. â&#x20AC;&#x153;Now weâ&#x20AC;&#x2122;re starting to get calls. I would say November was when we started getting calls.â&#x20AC;?

Asked if they were worried about the carbon capture project wrapping up this year, heâ&#x20AC;&#x2122;s not worried about not having clients, as the oilpatch is expected to fill in the difference. Recent clients included two people from Winnipeg working wireline. Other bookings for the end of January included seven men working on a drilling rig. At first they were tentative, but by early January it looked like a go.

About half of the clientele stay by the week. Thereâ&#x20AC;&#x2122;s a substantial discount if one books by the month, making a room at the CanStay less than a basement suite in Estevan.

Setting those prices has been something of a learning curve. They looked at comparable prices, and in the end, brought their price down a couple hundred dollars compared to what it was initially set at. For new-built accommodations, the CanStay was already one of the most economical options in the Estevan area. â&#x20AC;&#x153;They are 100 per cent the same as having their own suites, with a full kitchenette and private shower. â&#x20AC;&#x153;You can treat it as your own apartment. You can watch anything, turn it up as loud as you want,â&#x20AC;? he said.

Other amenities include high speed wireless internet, Netflix, and a substantial DVD library to borrow movies from.

The internet connection is very important according to Bryson, especially to engineers and architects. â&#x20AC;&#x153;They need internet,â&#x20AC;? he said. â&#x20AC;&#x153;One guy was here six months and did his power engineering course online.â&#x20AC;? â&#x20AC;&#x153;One comment we get with married guys is they like the peace and solitude. They make supper, Skype with their wife, and get a good nightâ&#x20AC;&#x2122;s sleep. â&#x20AC;&#x153;You donâ&#x20AC;&#x2122;t hear the guy at the other end. If you do, itâ&#x20AC;&#x2122;s very subtle.â&#x20AC;?

While the beds are twin-size, he noted a lot of clients will have their wives and kids down for the weekend.

The new units came in September 2013 and were online in October. The addition of an on-site laundry facility definitely helped. There is no exercise room, but they have looked into it.

In the warmer months the fire pit was a social place where clients would relax in the evening. There are also barbecues for their use. â&#x20AC;&#x153;One comment I got was about the sky â&#x20AC;&#x201C; to be able to see the stars. A lot of people from urban lives have never seen the stars,â&#x20AC;? Bryson said. â&#x20AC;&#x153;Guys were watching the space station â&#x20AC;&#x201C; they had it timed.â&#x20AC;?

So was this project a good bet? â&#x20AC;&#x153;It has been so far,â&#x20AC;? Bryson said. â&#x20AC;&#x153;If we can have an average 60 per cent occupancy, weâ&#x20AC;&#x2122;re still making decent money. Weâ&#x20AC;&#x2122;ve built this so that we can pick it up and move it where we want, wherever that need be.â&#x20AC;?

As for further expansion, they are trying to pay off what they have now as quickly as possible first. They may look at expansion in the future if thereâ&#x20AC;&#x2122;s a need for it.

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&HOHEULW\ KRFNH\ IDQV DFW OLNH SURV Lloydminster â&#x20AC;&#x201C; Scotiabank Hockey Day in Canada activities Jan.14-18 included a celebrity breakfast at the Lloydminster Exhibition Grounds with VIPs of various stripes in attendance.

Among CBC hockey broadcasting notables hosting the event were the likes of Cassie Campbell-Pascall, Dick Irwin and Carly Agro, and NHL alumni such as Lanny McDonald and Mark Napier.

The mix of people who came to eat and rub shoulders with the famous included a league of lesser known hockey celebrity fans from the oil and gas industry and other companies in Lloydminster.

Several celebrity fans stood out in the crowd like the pros by wearing NHL jerseys bearing the names of their favourite players.

Some of the celebrity hockey fans on hand were Terry Schneider from L & L Oilfield Construction in his Brodeur sweater, and Ron Mazerolle from L & L Oilfield sporting a Hemsky jersey.

Also on hand were Daniel Blais, a Husky completions engineer who came in an Eberle jersey and Curtis Brown, a Canadian Natural Resources field operator who ate breakfast in a Parise sweater.

Chris Dobson who works for Ironjet Promotions in Lloydminster stood out in a Smyth sweater.

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5LW] WDONV DERXW WKH IDUP DQG RLO FRQQHFWLRQ Â&#x201E; By Geoff Lee Lloydminster â&#x20AC;&#x201C; The Conservative Party of Canada held a fundraising dinner at the Lloydminster Exhibition Grounds on Dec. 18.

The guest speakers included Jason Kenney, Minister of Employment, Monte Solberg, principal owner of New West Public Affairs, Leon Benoit, Vegreville-Wainwright MP and Gerry Ritz, Minister of Agriculture and MP for Battlefords-Lloydminster.

Ritz huddled with Pipeline News before the formalities got underway to answer a few questions about the links between farming and the oil industry in keeping with the economic theme of the event.

Prior to his political career, Ritz farmed near Rosetown and owned a contracting company that did some oilfield business. Today, he and his wife

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live at Brightsand Lake, in heavy oil country.

PN: What makes many farmers adaptable for seasonal oilfield work?

Ritz: I think the skillset. They are hard workers â&#x20AC;&#x201C; get up early â&#x20AC;&#x201C; work late, work hard, get the job done, a little bit of mechanical skills, a little bit of welding skills â&#x20AC;&#x201C; a lot of things that are good attributes in the oilpatch.

PN: You probably wonâ&#x20AC;&#x2122;t argue that farmers are helping to fill a seasonal demand for oilfield workers?

Ritz: Absolutely, and farmers appreciate it too. It gives them the cash flow that sometimes is missing on the farm.

PN: Where did you farm in Saskatchewan and did you work in the oilpatch?

Ritz: Rosetown. I had a construction company that paid for my farming habit. We ran some trucks, some cranes, some backhoes and things like that.

PN: Do you miss working in the oilpatch?

Ritz: I do. I actually miss the mechanical part of it. My son and my wife have a little trucking company so I watch it.

PN: Whatâ&#x20AC;&#x2122;s your take on the booming Viking play in West Central Saskatchewan near Rosetown?

Ritz: We knew it was there. We knew it was under the ground. It was just a matter of getting to it. As the patch keeps sneaking further east into Saskatchewan, itâ&#x20AC;&#x2122;s a good news story. It brings that economic boost.

PN: What kind of oil development issues are farmers concerned about?

Ritz: I havenâ&#x20AC;&#x2122;t heard any critiques. Everybody seems happy to have a pump.

Of course itâ&#x20AC;&#x2122;s something to farm around with todayâ&#x20AC;&#x2122;s size of equipment â&#x20AC;&#x201C; there are always those problems that arise.

But at the end of the day, that movement is going to happen. Itâ&#x20AC;&#x2122;s going to push forward. With lateral drilling of course, they are not as intrusive as they used to be.

I have not heard other than the roads get beat up by all trucks or similar concerns â&#x20AC;&#x201C; I havenâ&#x20AC;&#x2122;t heard of anything else other than that.

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

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

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707,305, 5,>: -LIY\HY` W Page B12 (The Saskatchewan government is currently conducting a public review of the Surface Rights Acquisition and Compensation Act.) PN: Do you have concerns about more oil and gas activity moving into rural areas?

Ritz: Itâ&#x20AC;&#x2122;s not a bad thing. Thatâ&#x20AC;&#x2122;s what keeps schools open and pays the tax bills and keeps the hospitals there and the rinks in the small towns going.

They are all fed by people. The more people you can put into these small communities the longevity is there and the hard work is done.

PN: What about concerns over noise or pollution from rural oilfield activity?

Ritz: Thatâ&#x20AC;&#x2122;s the cost of doing business. Todayâ&#x20AC;&#x2122;s equipment is not as intrusive as it used to be. Municipalities are putting calcium down on roads â&#x20AC;&#x201C; there is less dust.

There are a lot of different things that are being brought to bear. At the end of day progress â&#x20AC;&#x201C; there is always something to give up.

PN: What do you think about the trend of municipalities striking road improvement with oil and gas companies?

Ritz: The oilpatch pays a huge amount of taxes whether itâ&#x20AC;&#x2122;s property or running rights â&#x20AC;&#x201C; all those types of things â&#x20AC;&#x201C; licensing, insurance or so forth. It all feeds into the capacity to build infrastructure.

PN: Do you think lack of housing is constraining growth in the oil and gas and agriculture sectors?

Ritz: Yes, labour force and housing â&#x20AC;&#x201C; the ability to get both. With labour force, you need the people to drive the trucks and run the oil rigs.

At the same time you need trades people to build the houses for them.

Itâ&#x20AC;&#x2122;s a good problem to have. We are one of the few countries in the world thatâ&#x20AC;&#x2122;s growing coming out of this recession.

Itâ&#x20AC;&#x2122;s problematic in the short term, but in the mid and long-term, building the economy by adding to our job capacity is certainly the right way to go.

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PN: About 10 years ago, farmers were walking away from farming. What caused the turnaround?

Ritz: The demand for products. Farming is cyclical some of its based on weather, but most of itâ&#x20AC;&#x2122;s based on market access. Weâ&#x20AC;&#x2122;re seeing a growing demand around the world for Canadian products.

Thereâ&#x20AC;&#x2122;s a growing middle class in two of the major markets, in China and India. Theyâ&#x20AC;&#x2122;re demanding a different type of food rather than just rice.

Last year in Japan was the first year in history that bread products surpassed rice.

PN: Did increased oil and gas activity and land sales play a role in higher farm land prices?

Ritz: I donâ&#x20AC;&#x2122;t think you can make a direct correlation to that.

Certainly, a quarter of land with some pumpers on it is worth more because of the surface rights that are there. I would not make that jump.

I think itâ&#x20AC;&#x2122;s just the demand for products. As farmers have gained in their business case â&#x20AC;&#x201C; you put a more solid bottom line together then they started to add another quarter there and another chunk there. It comes down to economies of scale PN: Do farmers buy equipment to do lease snow plowing?

Ritz: If you have a big four wheel tractor you can stick a blade in the front and pick up a little more for the winter months. Thereâ&#x20AC;&#x2122;s some of that going on.

PN: Are you still farming?

Ritz: Well Iâ&#x20AC;&#x2122;m not allowed to farm right now (conflict of interest). Iâ&#x20AC;&#x2122;ve got a quarter of hay land where I live that I play on to burn a bit of diesel.

My nephew is slowly taking over everything (Rosetown farm) and building it up.

Heâ&#x20AC;&#x2122;s a four year university agriculture degree â&#x20AC;&#x201C; heâ&#x20AC;&#x2122;s doing things with crops that I never even thought of. Itâ&#x20AC;&#x2122;s amazing to see the new technology and the new equipment out there.

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0LFURWHO WR DFFRPPRGDWH WKH RLOSDWFK Lloydminster â&#x20AC;&#x201C; The new Lloydminster Microtel Inn & Suites

by Wyndham expected to open in April wonâ&#x20AC;&#x2122;t have to drill very deep to attract travelling oil and gas clientele.

Oilfield workers staying in new Microtel hotels in Estevan, Blackfalds and Weyburn will be able to reserve a room in Lloydminster and earn Wyndham loyalty

rewards.

Special grand opening packages will also be available to further reward guests.

MasterBuilt Hotels Ltd., constructing the 94-room hotel on the Saskatchewan side of Lloydminster, is planning to expand the Wyndham brand soon to busy oilfield markets in Red Deer and Fort McMurray, Alta. and

Fort St. John, B.C. MasterBuilt is Albertaâ&#x20AC;&#x2122;s largest residential and multi-family construction company that owns the territorial development rights to the Microtel by Wyndham hotel brand in Canada.

The agreement will see 75 locations built in Canada over 25 years.

MasterBuilt develops the hotels both

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corporately and through partnerships with third party owners and franchisees. â&#x20AC;&#x153;We are opening in markets strategically and not limited to only the oil and gas sector,â&#x20AC;? said Catherine Burdett, director of marketing for MasterBuilt and the parent company, Superior Lodging Corp. in Calgary.

Superior Lodging owns the master territorial development rights for Super 8 Hotels, Wingate Inns by Wyndham and Microtel Inns & Suites by Wyndham hotels in Canada.

Choosing to construct a Microtel Inn & Suites in Lloydminster was a natural choice for MasterBuilt in a city where three new hotels are currently under construction to meet the demand for the business traveler. â&#x20AC;&#x153;It makes sense for us to be in high demand markets that are underserved with lodging options,â&#x20AC;? explained

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Burdett. â&#x20AC;&#x153;The idea was to get a foothold in this marketplace. Lloydminster aligns strategically and provides synergy for

where clients need to be and allows them consistency with a provider of services in these key markets.â&#x20AC;?

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W Page B14 Microtel Inn & Suites by Wyndham is the only new-build limited service economy segment hotel offering in Canada, according to Burdett.

As for the cost of the new hotel, Eric Watson, vice-president of development for MasterBuilt Hotels said in an e-mail, â&#x20AC;&#x153;Lloydminster features a buoyant economy and construction costs expectedly parallel the economy.â&#x20AC;?

The Lloydminster Microtel hotel is ideally located on 2.5 acres of land near Husky Place and adjacent to a Super 8 under construction.

Both hotels front Highway 16, a high

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â&#x20AC;˘ Executive Suites â&#x20AC;˘ Modern Equipped Rooms

FREE Wireless High Speed Internet â&#x20AC;˘ Banquet & Meeting Rooms Fitness Room â&#x20AC;˘ Wine & Beer Store â&#x20AC;˘ The Beef Beverage Room â&#x20AC;˘ Restaurants on Site

306-634-6456

1305- 9th St., Estevan â&#x20AC;˘ TF: 1-800-DAYS INN â&#x20AC;˘ www.daysinn.ca

volume east-west traffic corridor through Lloydminster. â&#x20AC;&#x153;Location, location, location is a key factor in choosing land to develop,â&#x20AC;? said Burdett. â&#x20AC;&#x153;We wanted to ensure we are easily accessible and within close proximity to other services that are important to the business and leisure traveler.

The Microtel hotel is near a new Tim Hortons restaurant that is a drawing card for businesses and booming house construction in the area. â&#x20AC;&#x153;Thatâ&#x20AC;&#x2122;s always a great selling point when you get Tim Hortons right outside your front door,â&#x20AC;? said Gerry Woznow, the new hotel general manager.

The Microtel hotel will initially open without a restaurant, but Masterbuilt plans to build a sit down restaurant on the northeast corner of the lot in the coming months.

It will â&#x20AC;&#x153;elevate the dining experience in Lloyd,â&#x20AC;? said Watson.

Microtel will differentiate itself from its competition with a multitude of amenities including a hot breakfast that is popular with oil and gas workers at other Microtel hotel locations.

The Lloydminster Microtel will feature 24 business class suites with queen size beds with a combined living room and bedroom area. â&#x20AC;&#x153;We are catering you might say to the executive here with our business class suites,â&#x20AC;? said Woznow. â&#x20AC;&#x153;I have two nice meeting rooms with a total of 1,690 sq. ft.â&#x20AC;?

There will also be four extended stay suites with 590 sq. ft of space â&#x20AC;&#x201C; almost twice the size of a regular room with two flat screen TVs in each.

Each unit will have a separate bedroom, and living room and a self-contained kitchen equipped with a fridge,

cook top stove and microwave.

The four storey Microtel hotel will also offer 43 rooms with two queen beds and an assortment of single guest rooms.

Burdett said oil and gas workers are looking for same level of services and amenities as other guests who are travelling on business.

The hotel will offer Wi-Fi, a fitness centre, a waterslide pool and spa jet tub and among other must-have services and amenities.

Woznow is no stranger to the hospitality industry or Lloydminster where he once managed a hotel, but being the general manager of new hotel about to open is a new challenge for him. â&#x20AC;&#x153;This is a first for me. Itâ&#x20AC;&#x2122;s quite exciting,â&#x20AC;? he said. â&#x20AC;&#x153;Iâ&#x20AC;&#x2122;ve never actually gone through the process of opening a hotel. This is whole new venture altogether. I am ecstatic about it. â&#x20AC;&#x153;There is quite a process involved prior to the opening of a hotel which I am finding out.

Itâ&#x20AC;&#x2122;s very interesting,â&#x20AC;? he said prior to conducting a tour for Pipeline News.

This year is Woznowâ&#x20AC;&#x2122;s 28th year working in hotels, restaurants and nightclubs, most recently as an assistance lodge manager for an ATCO camp in Hanna Alberta.

He and his wife plan to relocate from their current quarters in Edmonton to Lloydminster as soon as possible.

In the meantime, Woznow is busy hiring workers and getting people lined up to fill key positions.

The new hotel is expected to create 25 to 30 new jobs mainly from the Lloydminster area. â&#x20AC;&#x153;We also have the ability to import other people from our team on a short term basis from our other locations to aid with pre-opening activities,â&#x20AC;? said Burdett.

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707,305, 5,>: -LIY\HY`

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7RUT PD\ SXW ORFN RQ .HUUREHUW KRXVLQJ Poggemiller said heâ&#x20AC;&#x2122;s heard some room rentals are going for as high as $1,100 month but most are lower than that.

Itâ&#x20AC;&#x2122;s a similar situation in the region as increased oil and gas activity puts the pressure on available housing and rental rates. â&#x20AC;&#x153;The towns around us â&#x20AC;&#x201C; Luseland, Kindersley, Major, Plenty, Dodsland â&#x20AC;&#x201C; all those areas are in short supply of housing. Thatâ&#x20AC;&#x2122;s putting pressure on all of us,â&#x20AC;? said Poggemiller. â&#x20AC;&#x153;People are moving from one to another trying to find a place to live.â&#x20AC;?

Arrow Reload Systems Inc. employees joined the house hunt in 2013 after setting up a small crude-by- rail terminal on the CP rail line near the downtown core.

Al-Sask Ventures is sticking with their plans announced last fall to build an <Ä&#x17E;Ć&#x152;Ć&#x152;Ĺ˝Ä?Ä&#x17E;Ć&#x152;Ć&#x161; DÄ&#x201A;Ç&#x2021;Ĺ˝Ć&#x152; Ć&#x152;Ĺ&#x161;Ä&#x201A;Ć&#x152;Ä&#x161; WĹ˝Ĺ?Ĺ?Ä&#x17E;ĹľĹ?ĹŻĹŻÄ&#x17E;Ć&#x152; Ä?Ĺ&#x161;Ä&#x17E;Ä?ĹŹĆ? ŽƾĆ&#x161; Ć&#x161;Ĺ&#x161;Ä&#x17E; Ä?ŽŜÄ?Ä&#x17E;Ć&#x2030;Ć&#x161;ĆľÄ&#x201A;ĹŻ Ä&#x161;Ć&#x152;Ä&#x201A;Ç Ĺ?ĹśĹ? ĨŽĆ&#x152; Ä&#x201A; ĹśÄ&#x17E;Ç Î¨Ďľ ĹľĹ?ůͲ 85-room hotel on commercial property at the west end of town. ĹŻĹ?ŽŜ ϴϹͲĆ&#x152;ŽŽž Ĺ&#x161;Ĺ˝Ć&#x161;Ä&#x17E;ĹŻ Ć&#x2030;Ć&#x152;ŽŊÄ&#x17E;Ä?Ć&#x161; Ć&#x161;Ĺ&#x161;Ä&#x201A;Ć&#x161; 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?Ć&#x161;Ä&#x201A;Ć&#x152;Ć&#x161; Ä?ĆľĹ?ĹŻÄ&#x161;Ĺ?ĹśĹ? Ĺ?Ĺś <Ä&#x17E;Ć&#x152;Ć&#x152;Ĺ˝Ä?Ä&#x17E;Ć&#x152;Ć&#x161; They also plan to provide some rental modular homes on infill lots they purĆ&#x161;Ĺ&#x161;Ĺ?Ć? Ć?Ć&#x2030;Ć&#x152;Ĺ?ĹśĹ? Ç Ĺ?Ć&#x161;Ĺ&#x161; dĆ&#x152;Ĺ?Ä?ŽŜ Ä&#x17E;Ç&#x20AC;Ä&#x17E;ĹŻĹ˝Ć&#x2030;ĹľÄ&#x17E;ĹśĆ&#x161;Ć? /ĹśÄ?Í&#x2DC; chased from the town.

WĹ&#x161;Ĺ˝Ć&#x161;Ĺ˝Ć? Ä?Ç&#x2021; 'Ä&#x17E;Žč >Ä&#x17E;Ä&#x17E; â&#x20AC;&#x153;We are still moving forward with our plans,â&#x20AC;? said James Carpenter, president and co-owner of Al-Sask Ventures that has offices in Lacombe and Didsbury Â&#x201E; By Geoff Lee Kerrobert â&#x20AC;&#x201C; The aging Kerrobert Integrated Health Centre could be caring for Alberta. â&#x20AC;&#x153;We were planning on putting rentals on all these properties, but thereâ&#x20AC;&#x2DC;s a lot some of the housing needs in town in the coming months instead of patients. of pressure to us to just sell so people could put their own residences on.

Once the new hospital is completed by March, the town might sell the old â&#x20AC;&#x153;We are trying to work with anybody right now to facilitate that so we are centre to Al-Sask Ventures Inc. that could turn it and the Buena Vista Lodge for not controlling the market. seniors into temporary rental housing. â&#x20AC;&#x153;One of the concerns we had is, if you came right now and had a job in the A local housing tsunami is coming with the spring construction startup of region, we donâ&#x20AC;&#x2122;t want to lose you to another community.

Torq Transloading Inc.â&#x20AC;&#x2122;s $100 million crude-by-rail terminal southeast of town. â&#x20AC;&#x153;Our biggest thing is we want to see the town grow. From a longevity point, â&#x20AC;&#x153;There is some conversation that if the new hospital is ready to move in, Alyes, they need short term rentals, but in the long term they need people to actually Sask has spoken for the old facility,â&#x20AC;? said Mayor Erhard Poggemiller. â&#x20AC;&#x153;They are going to renovate that to seniorsâ&#x20AC;&#x2122; housing. However, in the interim, live there. â&#x20AC;&#x153;We are working closely with the town. They are phenomenal to deal with.â&#x20AC;? they may use that to house some of these construction people.â&#x20AC;?

Last fall, Al-Sask serviced all 21 infill lots and brought in two modular homes Torq anticipates having to house up to 200 construction workers at peak to that rented literally over night with three to five workers in each unit. build a terminal large enough to handle two, 120 car unit trains per day, or up to Modular construction will also be used to build the $9 million hotel located 168,000 barrels of oil per day. on eight acres of commercial highway property at the west end of Pacific Ave. â&#x20AC;&#x153;They are making arrangements with communities around and about, and â&#x20AC;&#x153;We have got a lot of our preliminaries done and we are still moving forward. also whatever we have here,â&#x20AC;? said Poggemiller.

We are not going to dig until the spring,â&#x20AC;? said Carpenter about the hotel. â&#x20AC;&#x153;Right now, there arenâ&#x20AC;&#x2122;t any houses for rent. The stuff thatâ&#x20AC;&#x2122;s for rent â&#x20AC;&#x201C; if there Al-Saskâ&#x20AC;&#x2122;s plan, however, to develop lots this spring on an 80-acre parcel of is anything â&#x20AC;&#x201C; itâ&#x20AC;&#x2122;s maybe a basement bedroom or stuff like that. Thatâ&#x20AC;&#x2122;s about all land near the Kerrobert Golf Club in the northwest corner of town has run into a weâ&#x20AC;&#x2122;ve got.â&#x20AC;? snag.

Decades ago, Kerrobert subdivided the land into about 1,800 25-ft. wide 6HH 8V )RU $OO <RXU &RPPHUFLDO 5HDO (VWDWH 1HHGV titled lots that have to be voided in order to re-plan and title new subdivision lots and services to modern standards. â&#x20AC;&#x153;So that takes a lot of work,â&#x20AC;? said Poggemiller.

In the meantime, Kerrobert is working to finalize the sale to Al-Sask of a 22-

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acre parcel of land in the southeast part of town behind Yukon Ave. to develop 30 to 40 new housing lots this year. â&#x20AC;&#x153;Theyâ&#x20AC;&#x2122;ve agreed to develop those come spring so that people can either buy lots or privately build or they will build for them,â&#x20AC;? said Poggemiller among a variety of development options including RTM homes. â&#x20AC;&#x153;We have no lots allocated right now that have any water and sewer or streets or road service. Thatâ&#x20AC;&#x2122;s a whole new development area.â&#x20AC;?

Some background planning work completed on that land years ago by SAL Engineering Ltd. is available to Al-Sask to fast-track the planning and needed infrastructure. â&#x20AC;&#x153;Al-Sask is prepared to take that study along with what theyâ&#x20AC;&#x2122;re doing, and then they can start the actual groundwork that needs to be done there so we have lots,â&#x20AC;? said Poggemiller. â&#x20AC;&#x153;Any other lots that the town has developed â&#x20AC;&#x201C; like new lots â&#x20AC;&#x201C; all that stuff â&#x20AC;&#x2122;s been sold.â&#x20AC;?

Al-Sask has made a 10 to 15 year commitment to help Kerrobert plan and develop housing along with needed commercial and industrial sites and facilities driven by oil and gas activity.

Torq secured a $250 million investment in December from KKR & Co. to help it develop the Kerrobert terminal and expand its crude-by-rail facilities in Western Canada.

The terminal will be served by Canadian Pacific Railway with light and heavy crude handled by pipeline and oil hauling trucks. â&#x20AC;&#x153;There is a big need for rental space to park trucks over the winter for storage of tractor units,â&#x20AC;? said Poggemiller who owns KEP Industries Ltd. with his wife Evelyn.

KEPâ&#x20AC;&#x2122;s main function these days is servicing the trucking industry. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;ve been very busy. We are also looking to see if somebody is interested to carry on this business. We are at the age where weâ&#x20AC;&#x2122;d like to retire. â&#x20AC;&#x153;We are looking for someone to take it over as an ongoing business because this is the type of business that needed in this town.â&#x20AC;?

KEP also does custom fabrication and SGI vehicle inspections on large trucks.

Speaking as the mayor, Poggemiller said the townâ&#x20AC;&#x2122;s wish list includes a hardware store and a service station thatâ&#x20AC;&#x2122;s open 24 hours. â&#x20AC;&#x153;We need additional food services. For example, when Torq comes in with 50 or 60 people for a major construction job at six in the morning, where are they going to eat? â&#x20AC;&#x153;We need something to accommodate those kinds of things.â&#x20AC;?

The town is also working with a group interested in building a mini mall in the downtown core.

Poggemiller said 2014 will be an exciting year for developments and housing

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solutions to accommodate new employees and work crews. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re just hoping we can accommodate the growth and do things methodically so it isnâ&#x20AC;&#x2122;t too overwhelming,â&#x20AC;? said Poggemiller who stressed housing is priority one. â&#x20AC;&#x153;There are several businesses looking for housing for their employees,â&#x20AC;? he said.

Some of the businesses have tried other means for temporary housing situations with some trailer camps and so on. Itâ&#x20AC;&#x2122;s just a dire need.â&#x20AC;?

The housing shortage led to the opening of the Open Camp Kelordan a couple of years ago.

Poggemiller said there are no plans he knows of to expand the camp, but he has recently received an inquiry from an individual to build a second new hotel in town.

Meanwhile G& G Developments from Kindersley plans to build a fourplex on private land near the golf course this spring.

Other private duplex or fourplex housing projects are expected to move forward in 2014.

Poggemiller is hoping the Ministry of Highways will also pave Pacific Ave. through town this fall with traffic counts at 90,000 vehicles a month.

Last summer, the town installed new water and sewer lines in preparation to rebuild the main street to the highest load standards. â&#x20AC;&#x153;They definitely said 2015 they are going to do it, but we have asked the highways department if they would consider doing it this fall,â&#x20AC;? said Poggemiller.

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Ten years, 115 acres, and hopefully 3,000 people Â&#x201E; By Geoff Lee Kindersley â&#x20AC;&#x201C;Â Give us shelter. The cry for housing by oil and gas workers and businesses in Kindersley is been answered by Marathon Properties Corp.

The Calgary-based developer is already selling titled lots to home builders and individuals in the first phase of its Brookhollow Estates subdivision at the east side of town.

Kindersley Mayor John Enns-Wind says the town is tryâ&#x20AC;&#x153;Right now you ing to host more events at the new West Central Events can start building your Centre, but that puts the squeeze on available motel and home because itâ&#x20AC;&#x2122;s level hotel space in town. He believes more housing would to grade. It takes six Ä&#x17E;Ä&#x201A;Ć?Ä&#x17E; Ć&#x161;Ĺ&#x161;Ä&#x17E; Ä&#x161;Ä&#x17E;ĹľÄ&#x201A;ĹśÄ&#x161; ĨŽĆ&#x152; Ć?Ĺ&#x161;Ĺ˝Ć&#x152;Ć&#x161; Ć&#x161;Ä&#x17E;Ć&#x152;Ĺľ Ć?Ć&#x161;Ä&#x201A;Ç&#x2021;Ć? Ä&#x201A;ĹśÄ&#x161; Ä&#x201A;ĆŠĆ&#x152;Ä&#x201A;Ä?Ć&#x161; žŽĆ&#x152;Ä&#x17E; months to build a house ĨƾůůͲĆ&#x;ĹľÄ&#x17E; Ć&#x152;Ä&#x17E;Ć?Ĺ?Ä&#x161;Ä&#x17E;ĹśĆ&#x161;Ć?Í&#x2DC; WĹ&#x161;Ĺ˝Ć&#x161;Ĺ˝Ć? Ä?Ç&#x2021; 'Ä&#x17E;Žč >Ä&#x17E;Ä&#x17E;

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said,â&#x20AC;? Wynn Sturm, president and CEO of Marathon in early January. â&#x20AC;&#x153;By the time the house is done, the sewer and water will be in and the road will be there.â&#x20AC;?

Marathon specializes in the development and sale of residential, multi-family, industrial and commercial land parcels in Saskatchewan with three projects currently underway in the Regina area. â&#x20AC;&#x153;We buy large parcels and develop the whole concept and subcontract construction to home builders,â&#x20AC;? explained Sturm. â&#x20AC;&#x153;We are going to be selling lots to any home builder or any individual who would like to buy lots.â&#x20AC;? â&#x20AC;&#x153;We are not really home builders. We build homes, but thatâ&#x20AC;&#x2122;s not our expertise. â&#x20AC;&#x153;We do more for the land development, and we sell to home builders and we sell to anyone that wants to

build.â&#x20AC;?

Marathon plans to accommodate more than 3,000 residents in the mixed housing and commercial project in Kindersley over a 10 year period on 115 acres of land.

The company officially broke ground on the 25-acre first phase of Brookhollow Estates on Nov. 29 and worked through -30C cold to level the site to grade. â&#x20AC;&#x153;We have it pinned and right now itâ&#x20AC;&#x2122;s at ISC (Information Services Corporation) for land titling. Titles will probably be available in a couple of weeks,â&#x20AC;? said Sturm. â&#x20AC;&#x153;Then come spring, we will do the sewer, the water, the sidewalks and the roads.â&#x20AC;?

The development is a public private partnership or P3 development whereby Marathon will provide all of the infrastructure and services at no cost to the taxpayers.

Kindersley sold the land for $200,000 and

will charge an initial development fee of $500,000 for future replacement and maintenance of local infrastructure. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s been a goal weâ&#x20AC;&#x2122;ve tried to reach to bring in developers who would invest in this infrastructure and take on the duty of doing the zoning and the servicing and the landscaping so itâ&#x20AC;&#x2122;s not a burden to our taxpayers,â&#x20AC;? said Theresa Leinenweber, Kindersleyâ&#x20AC;&#x2122;s economic development officer.

Marathon was chosen last August among three companies who submitted proposals to develop housing on the site with a concept that meets Kindersleyâ&#x20AC;&#x2122;s current and long-term growth needs. â&#x20AC;&#x153;The recommendations for Marathon were very good and the communication to date has been excellent,â&#x20AC;? said Mayor John Enns-Wind at that time.

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707,305, 5,>: -LIY\HY` W Page B18 Marathonâ&#x20AC;&#x2122;s concept best met Kindersleyâ&#x20AC;&#x2122;s current and long-term growth needs. â&#x20AC;&#x153;I heard there was a great need for housing,â&#x20AC;? said Sturm, who is current developing a subdivision in Pilot Butte near Regina. â&#x20AC;&#x153;The mayors had actually all gotten together for a meeting. They were looking at different developments that have been done throughout the province.â&#x20AC;?

That event attended

by Kindersley officials was the Municipal Showcase and Developer & Builder Forum in Saskatoon in 2012. â&#x20AC;&#x153;We are doing other developments around Regina and so on, and they came to us and asked if weâ&#x20AC;&#x2122;d be interested to come to Kindersley and do something along the same lines,â&#x20AC;? added Sturm. â&#x20AC;&#x153;Thatâ&#x20AC;&#x2122;s what brought us there and we started looking. We saw the need and the pentup demand and thought this was a good little town to start a development in.

â&#x20AC;&#x153;Everything is needed â&#x20AC;&#x201C; you have a real mixed use there thatâ&#x20AC;&#x2122;s required.â&#x20AC;?

The phase one development includes 58 lots for single detached housing, 16 lots for townhouses, 3 lots for a duplex, 4-plex and a 6-plex, 3 lots for high density apartments or condos and 1 lot for seniorsâ&#x20AC;&#x2122; housing. â&#x20AC;&#x153;We are very excited. This provides a lot of certainty for the community, especially our businesses both commercial and industrial so they will have places for their employees to live,â&#x20AC;? said Enns-Wind. â&#x20AC;&#x153;Thatâ&#x20AC;&#x2122;s been the biggest drawback to growth in Kindersley.â&#x20AC;?

Enns-Wind says the lack of housing has also prevented some growth in the booming oil and gas industry in the regional Viking light oil play. â&#x20AC;&#x153;We have a lot of gentlemen who come in for a week or and then they go home and theyâ&#x20AC;&#x2122;d like to live here,â&#x20AC;? he said. â&#x20AC;&#x153;The oil industry has worked around it

a little bit, but itâ&#x20AC;&#x2122;s not good.â&#x20AC;?

The town sold its two remaining infill lots for single detached houses in an early January lot draw. â&#x20AC;&#x153;We are hoping we can open up another subdivision at the end of January for development,â&#x20AC;? said Enns-Wind.

The housing shortage that Marathon Properties will help to solve affects the entire community. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s not just oil and gas â&#x20AC;&#x201C; other companies as well like McDonalds and some of ag companies and a couple of other service companies â&#x20AC;&#x201C; they own their own apartments, condos and housing for their staff because housing is a problem,â&#x20AC;? said EnnsWind.

The recent expansions of the Crossroads Motel and the Kindersley Inn and the ongoing construction of the Snow White Inn and a Suburban Extended Stay Hotel being built

by Choice Hotels are keyed to longer term stays. â&#x20AC;&#x153;The Crossroads

Motel for example â&#x20AC;&#x201C; itâ&#x20AC;&#x2122;s set up like a single room apartment with a bedroom and another open area which has a combination kitchen and dining room and living so you can do a little bit of cooking,â&#x20AC;? said EnnsWind. â&#x20AC;&#x153;The new Choice Hotel Suburban longterm stay hotel across from McDonalds â&#x20AC;&#x201C; thatâ&#x20AC;&#x2122;s designed the same way. Itâ&#x20AC;&#x2122;s tough on guys to be away from their families.

X Page B20

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&DPS D EULGJH WR DGHTXDWH KRXVLQJ W Page B19 â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s not dissimilar to what is going on in Fort Mac except that a lot guys would like to stay here year round.â&#x20AC;?

Many oil and workers stay in their own RVs during the summer months and commute back home during breaks. â&#x20AC;&#x153;They leave their trailers parked here year round. Thatâ&#x20AC;&#x2122;s hard on family life,â&#x20AC;? said Enns-Wind. â&#x20AC;&#x153;These guys like to stay year round, but they just canâ&#x20AC;&#x2122;t afford it because there are so few houses on the market. Once we get the houses in there it will

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make quite a bit of difference.â&#x20AC;?

The housing crunch led to the opening of the 100-person Open Camp Lodge in town that Enns-Wind views as a temporary solution. â&#x20AC;&#x153;In talking with the owners of the camp who have been very good to work with, they realize that they basically just provide a bridging service from a condition of a housing shortage to where we have adequate housing,â&#x20AC;? said Enns-Wind. â&#x20AC;&#x153;They are quite aware that we appreciate the service that they offer, but are working to have permanent housing for people.â&#x20AC;?

Marathon Properties is also developing a planned community in Pilot Butte near Regina that is facing a demand for all types of housing. â&#x20AC;&#x153;I find itâ&#x20AC;&#x2122;s everywhere in the province. Itâ&#x20AC;&#x2122;s almost every town â&#x20AC;&#x201C; thereâ&#x20AC;&#x2122;s a pent up demand,â&#x20AC;? said Sturm.

He said once the supply of available lots is gone, it becomes more costly for towns and developers to put new ones in. â&#x20AC;&#x153;Prices have gone up considerably compared to what was the norm 20 years ago,â&#x20AC;? he said.

Lots in Brookhollow Estates are price from $92,900 â&#x20AC;&#x201C; low by big city standards, but high for Kindersley where some residents have expressed sticker shock. â&#x20AC;&#x153;In Kindersley itâ&#x20AC;&#x2122;s a high maybe, but they are still quite a bit cheaper than what we are doing in Pilot Butte in the Regina area,â&#x20AC;? said Sturm. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s all relative. This is going to be a real state-of-the-art subdivision. â&#x20AC;&#x153;You have the opportunity to come to Kindersley to pick your lot to build your own home.â&#x20AC;?

The subdivision may include some double-fronted homes along Brookhollow Boulevard with the front of the house facing Brookhollow and the garage facing Cooper Way on the site plan. â&#x20AC;&#x153;It will be a nice subdivision. We have some Tuscan (Italian look) plans that will be introducing but we havenâ&#x20AC;&#x2122;t said too much about it. We are still in the preliminary stage trying to make it happen,â&#x20AC;? said Sturm.

Sturm expects excitement to build once cold winter weather gives way to spring. â&#x20AC;&#x153;When March comes around, the snow is melted â&#x20AC;&#x201C; and you see things are going forward with sewer and water â&#x20AC;&#x201C; then people will get excited,â&#x20AC;? he said.

The only hiccup so far in the concept is the idea to scale back a condo project due to lower than expected demand â&#x20AC;&#x201C; with the land shovel ready.

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1' UDLO EODVW Ă&#x20AC;UHV XS .H\VWRQH ;/ Casselton, N.D. â&#x20AC;&#x201C; The explosive derailment of a 1.5 kilometre crude oil train near Casselton North Dakota last month is helping to make a case for TransCanadaâ&#x20AC;&#x2122;s proposed Keystone XL pipeline.

North Dakota senators John Hoeven and Heidi Hietkamp renewed their pitch for expanded oil pipelines including Keystone XL to federal officials sent to investigate the Dec. 30 derailment and explosion.

The Associated Press reported their discussions focused on increased rail safety, but both senators support pipelines as an alternative to be considered in tandem with increased safety procedures for shipping oil.

Hietkamp met with Canadaâ&#x20AC;&#x2122;s foreign minister John Baird in Washington on Jan. 16 to help Canada press the case for the Keystone XL pipeline.

Baird was in Washington for three days to urge U.S. President Barack Obama to make a quick decision on the Keystone XL pipeline.

The Hardisty to Texas pipeline would transport oil from Albertaâ&#x20AC;&#x2122;s oilsands and Bakken shale oil in North Dakota to oil refineries near Houston.

Renewed arguments for the Keystone XL and other oil pipelines came to the fore as U.S. federal investigators

looked into the Casselton derailment and explosion.

A preliminary federal investigation from the National Transportation Safety Board in January showed that more than 9,500 gallons of oil were lost when a trail derailed and caught fire near Casselton.

NTSBâ&#x20AC;&#x2122;s initial report said an oil tanker traveling east crashed into a grain car with soybeans that was traveling west.

There were no injuries but the derailments caused a massive explosion just outside of Casselton, and about 1,400 of the townâ&#x20AC;&#x2122;s 2,400 residents voluntarily evacuated.

The accident also prompted the U.S. Department of Transportation to issue a warning about the volatility of crude from the Bakken in eastern Montana and western North Dakota.

The Casselton derailment came after a train carrying Bakken oil from North Dakota derailed and exploded in Lac-Megantic Quebec last summer, killing 47 people.

Another oil train from North Dakota derailed and exploded in Alabama in November, causing no deaths but spilling an estimated 17,800 barrels of oil from 26 tanker cars.

On Jan. 18, WDAY TV reported

Gov. Jack Dalrymple, whose home town is Casselton, stated, â&#x20AC;&#x153;I think everyone is agreeing that we need to convert the nationâ&#x20AC;&#x2122;s tank car fleet as

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0F'RQDOG VFRUHV ZLWK KRFNH\ IDQV Lanny McDonald, former NHL star and Hockey Hall of Fame member, shook a lot of hands with hockey fans enjoying Scotiabank Hockey Day in Canada activities in Lloydminster Jan. 14-18.

McDonald is currently the director of marketing for URS in Calgary and is taking part in a whirlwind tour across Western Canada as the company rebrands itself as URS from URS Flint.

URS Corporation, a San Francisco-based engineering firm purchased Flint Energy in a friendly deal valued at about $US1.25 billion in 2012.

URS is a fully integrated engineering, construction and technical services organization that employs more than 50,000 employees worldwide.

McDonald came to the Lloydminster event to serve as a Scotiabank ambassador and was eager to talk about oil and hockey connections in Western Canada and in Lloydminster.

X Page B23

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707,305, 5,>: -LIY\HY` W Page B22 PN: What do you do as director of marketing for URS in Calgary?

McDonald: Every day is different â&#x20AC;&#x201C; sales, marketing, PR, hosting, community â&#x20AC;&#x201C; you name it, wherever you can help out, thatâ&#x20AC;&#x2122;s what we try and do.

PN: Do you travel regularly to URS locations throughout Western Canada?

McDonald: Last week I was all across the northwest â&#x20AC;&#x201C; Grande Prairie, Fort St. John, Drayton Valley, Edson and Whitecourt doing our â&#x20AC;&#x153;fresh startsâ&#x20AC;? rebranding. We just changed recently.

It was URS Flint. Now. weâ&#x20AC;&#x2122;ve dropped all of the other names and we are just URS now.

PN: What got you into the oil and gas industry after pro hockey?

McDonald: Itâ&#x20AC;&#x2122;s been 14 years now. Itâ&#x20AC;&#x2122;s been a great transition. It was time to try something new. I got approached by the people over at Baker Hughes and I was there for 11-and-a-half years before joining Flint.

Itâ&#x20AC;&#x2122;s been a great run.

PN: Are you surprised by the strong level of support for hockey by the oil and gas industry?

McDonald: No, Iâ&#x20AC;&#x2122;m not surprised at all. Itâ&#x20AC;&#x2122;s all about the team concept regardless of whether you are in the oil and gas business or in sport, so this works perfectly (Hockey Day).

What a great opportunity for the oil and gas industry in a place like Lloydminster.

PN: Do you see hockey/oil connections in your travels across the west?

McDonald: We do a tremendous amount of work down in Saskatchewan and up in the northeast corner of B.C. and it works great. Itâ&#x20AC;&#x2122;s a great tie-in back to the community.

PN: Do you find your NHL experience to be an ice breaker in your job?

McDonald: Totally. It gives you a tremendous opportunity to open doors. Obviously, you take key people with you that know the business inside out.

PN: On Dec. 7, Scotiabank brought the Stanley Cup to Kindersley where you played some games growing up in nearby Hanna Alberta. How special was that event for you?

McDonald: It was a fantastic opportunity to go past my old stomping grounds in Hanna and get back to Kindersley. They won the right to host the Stanley Cup in their community.

It was great to be able to reward those people for the community spirit they have all across the country.

Editorâ&#x20AC;&#x2122;s note: Kindersley Scotiabank employee Gwendolyn Hrycak won a national employee contest about community spirit that brought the cup and McDonald to town for a day.

Hrycak told the story of the 2010 fire that burned down the Kindersley Exhibition Stadium where McDonald played some hockey.

Surrounding communities rushed firefighters to the blaze then later welcomed hockey players and fans to share their own private and community rinks.

PN: What were your impressions of playing in

that old rink as a kid?

McDonald: In fact it was the longest rinks ever. As a little boy it seemed like it took you forever to get from one end to the other. So going back, it was pretty cool.

PN: Lloydminster is a hockey mad oil town.

You must see a strong oil and hockey connection here too?

McDonald: You really do. When I was with Baker Hughes. I had an opportunity to come up and speak to the Bobcats junior hockey team.

In 2011, local companies and individuals rallied to purchase the Junior A team under community ownership to keep the club in Kindersley.

You try to help support wherever you can.

PN: Do you know a lot of people in the Lloydminster oil and gas industry?

McDonald: Weâ&#x20AC;&#x2122;ve got all kinds of friends up here whether it was from my old days with Baker

Hughes, but especially now with URS. Itâ&#x20AC;&#x2122;s great to be able to come back up here.

Husky is a major partner of ours â&#x20AC;&#x201C; to be able to come up and speak with a whole bunch of those people â&#x20AC;&#x201C; thereâ&#x20AC;&#x2122;s a lot of Cold Lake people here today with Imperial â&#x20AC;&#x201C; itâ&#x20AC;&#x2122;s fun to renew old acquaintances.

PN: Do you think the oil and hockey connection is a message that should get out to the public more often?

McDonald: I think it is. Itâ&#x20AC;&#x2122;s an automatic connection. You can use that to help drive your business all the way across Canada.

PN: I guess in your job it is good public relations for the oil and gas industry to have that connection with hockey?

McDonald: It certain is. Like Scotiabank, you can be look upon as putting something back into your community.

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Lloydminster 6203 - 56th Street, Lloydminster, AB T9V 3C1 Direct Line: 780-875-6211 Toll Free: 800-661-3926

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707,305, 5,>: -LIY\HY`

&KLOO RXW DW .LQGHUVOH\ ,QQ¡V H[HF VXLWHV Â&#x201E; By Geoff Lee Kindersley â&#x20AC;&#x201C; Alice Cooper and the Nitty Gritty Dirt Band slept

there in 2013.

So did hundreds of oilfield workers, business travelers and

families looking for a friendly, full service hotel in the busy town of Kindersley.

32:'(5 &2$7,1* 6NLG dĹ&#x161;Ä&#x17E;Ć&#x152;Ä&#x17E; Ä&#x201A;Ć&#x152;Ä&#x17E; Ď­Ď°ĎŽ Ć&#x152;ŽŽžĆ? Ĺ?Ĺś Ć&#x161;Ç Ĺ˝ Ć?Ä&#x17E;Ć&#x2030;Ä&#x201A;Ć&#x152;Ä&#x201A;Ć&#x161;Ä&#x17E; Ä?ĆľĹ?ĹŻÄ&#x161;Ĺ?ĹśĹ?Ć? ŽĨ Ć&#x161;Ĺ&#x161;Ä&#x17E; <Ĺ?ĹśÄ&#x161;Ä&#x17E;Ć&#x152;Ć?ĹŻÄ&#x17E;Ç&#x2021; /ŜŜ Ć&#x161;Ĺ&#x161;Ä&#x201A;Ć&#x161; Ä&#x201A;Ć&#x152;Ä&#x17E; ĹśÄ&#x17E;Ä&#x201A;Ć&#x152;ĹŻÇ&#x2021; Ĩƾůů Ä&#x201A;Ć&#x161; Ć&#x161;Ĺ&#x161;Ĺ?Ć? Ć&#x;ĹľÄ&#x17E; ŽĨ Ć&#x161;Ĺ&#x161;Ä&#x17E; Ç&#x2021;Ä&#x17E;Ä&#x201A;Ć&#x152; Ç Ĺ?Ć&#x161;Ĺ&#x161; Ĺ˝Ĺ?ĹŻÄŽÄ&#x17E;ĹŻÄ&#x161; Ä&#x201A;ĹśÄ&#x161; Ĺ?Ĺ˝Ç&#x20AC;Ä&#x17E;Ć&#x152;ŜžÄ&#x17E;ĹśĆ&#x161; Ç Ĺ˝Ć&#x152;ĹŹÄ&#x17E;Ć&#x152;Ć?Í&#x2DC; dĹ&#x161;Ä&#x17E; ĹľÄ&#x201A;Ĺ?Ĺś Ĺ?ŜŜ ĨÄ&#x17E;Ä&#x201A;Ć&#x161;ĆľĆ&#x152;Ä&#x17E;Ć? Ä&#x201A; Ĩƾůů Ć?Ä&#x17E;Ć&#x152;Ç&#x20AC;Ĺ?Ä?Ä&#x17E; Ć&#x152;Ä&#x17E;Ć?Ć&#x161;Ä&#x201A;ĆľĆ&#x152;Ä&#x201A;ĹśĆ&#x161; Ć&#x161;Ĺ&#x161;Ä&#x201A;Ć&#x161; Ć?Ä&#x17E;Ä&#x201A;Ć&#x161;Ć? Ď­ĎŽĎŻ Ć&#x2030;Ä&#x17E;Ĺ˝Ć&#x2030;ĹŻÄ&#x17E;Í&#x2DC;

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Whether you are famous or just one of the crowd, Kindersley Inn can be anideal choice for overnight and long-term stays with all the comforts of home.

The hotel located on Highway 7 opened a separate building with 53 room executive suites last summer with high occupancy rates as oilfield activity picks up in the Viking light oil play. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s been busy for quite some time and it doesnâ&#x20AC;&#x2122;t show any sign of slowing up,â&#x20AC;? said general manager Tom Morris about the oil and gas industry. â&#x20AC;&#x153;A lot of companies that stay with us ask for extra rooms coming

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into 2014. â&#x20AC;&#x153;There is a lot of drilling in the area.

Thatâ&#x20AC;&#x2122;s what we hear.

There is a lot of service work on the existing holes that have been punched here. Thatâ&#x20AC;&#x2122;s going on full bore.â&#x20AC;?

By contrast, the executive suites in the new Kindersley Inn wing are designed with relaxation and comfort in mind.

The new suites are larger than standard rooms with multiple layouts, bed sizes and amenities on three floors that are accessed by an elevator and wide hallways.

The king suite has the look and feel of a city condo with a separate bedroom and bathroom and laundry facilities along with a kitchenette and a spacious living room with a pullout bed. â&#x20AC;&#x153;I think when you are talking about supervisors and people who need to do a lot of paperwork, they are definitely looking for a little more space. Thatâ&#x20AC;&#x2122;s what these rooms do for them,â&#x20AC;? said Morris.

The king suite comes with two flat screen televisions and wireless Internet service for online communication. â&#x20AC;&#x153;Theyâ&#x20AC;&#x2122;re definitely been built to accommodate comfortable longer term stays. The majority of guests are oil and gas workers,â&#x20AC;? said Morris. â&#x20AC;&#x153;They are looking for rooms that are comfortable and clean. Last year, we changed out all the beds in our entire hotel. They are all brand new pillow top beds. â&#x20AC;&#x153;Being away from

home for an extended period of time is a not a 100 per cent great experience to begin with, and so we try to make it as comfortable as we can while they are here.â&#x20AC;?

The Kindersley Inn and the Nova Inn in town are owned by Nova Hotels. They aimed for an upscale environment with the expansion of the executive suites. â&#x20AC;&#x153;When we say upscale â&#x20AC;&#x201C; the feel, the look and the comfort is definitely upscale, but if you compare our prices with a lot of the bigger city hotels â&#x20AC;&#x201C; we are certainly nowhere near that a far as price is concerned,â&#x20AC;? said Morris.

Customer feedback about the new suites has been positive judging from social media comments like this one posted by a guest last August. â&#x20AC;&#x153;Just in Kindersley for one night but the new suites were lovely.

They have full kitchens, washer and dryer, etc.

There is a separate bedroom and a living room both with big screen TVs. The beds are very comfortable. Make sure you ask for a room in the new building.â&#x20AC;?

The Kindersley Inn is also continually evolving and upgrading the 89 rooms in the main building to meet customer expectations. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;ve been upgrading; all the rooms have new beds, 42-inch flat screen TVs, new bedding, fridges and microwaves,â&#x20AC;? said Morris. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;ve gone with triple sheeting and a higher linen package.â&#x20AC;?

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707,305, 5,>: -LIY\HY`

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&Ć&#x152;ŽŜĆ&#x161; Ä&#x161;Ä&#x17E;Ć?ĹŹ Ä?ĹŻÄ&#x17E;Ć&#x152;ĹŹ ŜŜÄ&#x201A; DÄ&#x201A;Ä&#x17E; žƾĹ?Ĺ˝Ä&#x161; Ĺ?Ć? Ć&#x2030;ĹŻÄ&#x17E;Ä&#x201A;Ć?Ä&#x17E;Ä&#x161; Ć&#x161;Ĺ˝ Ä?Ĺ&#x161;Ä&#x17E;Ä?ĹŹ Ĺ?Ĺś Ĺ?ĆľÄ&#x17E;Ć?Ć&#x161;Ć? Ä&#x201A;Ć&#x161; Ć&#x161;Ĺ&#x161;Ä&#x17E; <Ĺ?ĹśÄ&#x161;Ä&#x17E;Ć&#x152;Ć?ĹŻÄ&#x17E;Ç&#x2021; /ŜŜ Ä&#x201A;ĹśÄ&#x161; Ć&#x161;Ĺ&#x161;Ä&#x17E; ĹśÄ&#x17E;Ç ĎąĎŻ Ć&#x152;ŽŽž Ä&#x17E;Ç&#x2020;Ä&#x17E;Ä?ĆľĆ&#x; Ç&#x20AC;Ä&#x17E; Ć?ĆľĹ?Ć&#x161;Ä&#x17E;Ć? Ä?ĆľĹ?ĹŻÄ&#x161;Ĺ?ĹśĹ? Ç Ĺ?Ć&#x161;Ĺ&#x161; Ä&#x201A;ĹŻĹŻ ŽĨ Ć&#x161;Ĺ&#x161;Ä&#x17E; Ä?Ć&#x152;Ä&#x17E;Ä&#x201A;Ć&#x161;ĆľĆ&#x152;Ä&#x17E; Ä?ŽžĨŽĆ&#x152;Ć&#x161;Ć? ŽĨ Ĺ&#x161;ŽžÄ&#x17E;Í&#x2DC; WĹ&#x161;Ĺ˝Ć&#x161;Ĺ˝Ć? Ä?Ç&#x2021; 'Ä&#x17E;Žč >Ä&#x17E;Ä&#x17E;

W Page B24 The main inn includes a full service restaurant that seats 123 people and a 129 seat lounge with full meal service.

The inn includes a 209 seat nightclub and a ballroom that breaks into three separate meeting rooms with a capacity of 260 people for meals and 300 for gatherings. Guests will notice a newly renovated lobby and a cafÊ that includes new carpet, electrical fixtures and tables and chairs.

Morris wonâ&#x20AC;&#x2122;t argue with the premise that the decision to expand had a lot to do with the high level of oil and gas activity in the region. â&#x20AC;&#x153;The fact that we are as busy as we are and everyone is town is as busy as they are â&#x20AC;&#x201C; thereâ&#x20AC;&#x2122;s definitely a demand for more accommodations in the Kindersley area â&#x20AC;&#x201C; especially Kindersley,â&#x20AC;? he said.

Morris said the oil industry in the area was also busy in 2009 when he began work at the hotel and he noted thereâ&#x20AC;&#x2122;s been no let up ever since. â&#x20AC;&#x153;We are busy for all sorts of reasons. Thereâ&#x20AC;&#x2122;s a lot of government work in the area too.

Itâ&#x20AC;&#x2122;s not 100 per cent oil and gas,â&#x20AC;? he said. â&#x20AC;&#x153;I mean oil and gas is definitely way up there. Thereâ&#x20AC;&#x2122;s no question about it but a lot of the other people coming into town are servicing the other businesses that are in Kindersley.â&#x20AC;?

On any given day there is a long line of oilfield trucks parked along the hotel access road to remind Morris what is mainly driving

the local economy and hospitality industry.

Asked if heâ&#x20AC;&#x2122;d like to don a hard hat and work boots and head into the oilpatch, he laughed and said, â&#x20AC;&#x153;No, Iâ&#x20AC;&#x2122;m fine. Been there, done that, Iâ&#x20AC;&#x2122;m happy with what I do.â&#x20AC;?

Morris, whose home town is Red Deer, recalled he worked â&#x20AC;&#x153;a little bitâ&#x20AC;? in the oil and gas industry when he was younger up in Fort St. John in British Columbia. â&#x20AC;&#x153;I worked for a flow testing company, so I would go in and gauge the flow of wells,â&#x20AC;? he said. â&#x20AC;&#x153;Iâ&#x20AC;&#x2122;d do tank dips and things like that and measure the amount of oil that was being pumped out.â&#x20AC;?

Employee accommodations are tight in town for most businesses, but that could change in the coming months.

Marathon Properties plans to build hundreds of housing units over the next 10 years in the Brookhollow Estates subdivision in the east side of town.

First phase site preparation work got underway in November. â&#x20AC;&#x153;As the area grows, people need somewhere to live and right now there isnâ&#x20AC;&#x2122;t anything,â&#x20AC;? said Morris.

The lack of accommodations puts an extra squeeze on hotel rooms when the town hosts sports events and concerts. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s very difficult to hold these functions in Kindersley with trying to get rooms. The good thing is the oil companies have always been supportive of community functions,â&#x20AC;? said Morris. â&#x20AC;&#x153;Any time there has

been something thatâ&#x20AC;&#x2122;s come up â&#x20AC;&#x201C; as long as theyâ&#x20AC;&#x2122;ve had adequate notice â&#x20AC;&#x201C;they shift their activity which is something that is unheard of really.â&#x20AC;?

Morris said the arrival of Alice Cooper in the main hotel lobby in November was a special treat for one hotel employee and fan of the rock star. â&#x20AC;&#x153;We had a gal in our kitchen â&#x20AC;&#x201C; sheâ&#x20AC;&#x2122;s such a big fan. She came around the corner just to stare at him. He called her over and she was in tears. She was posing while people were taking pictures,â&#x20AC;? he said.

The Kindersley Inn is also a popular spot for families and weddings. â&#x20AC;&#x153;We are the only place in town that has a pool and a water slide,â&#x20AC;? said Morris.

â&#x20AC;˘ Boom & Knuckle Pickers â&#x20AC;˘15-50 Ton/165â&#x20AC;&#x2122; Reach â&#x20AC;˘ Winch Tractor c/w Lo-Boys â&#x20AC;˘ Tandem & Tri-axle Trailers â&#x20AC;˘ Tank Cradles c/w Hydraulic Arm â&#x20AC;˘ Pilot Trucks â&#x20AC;˘ Double Man Basket â&#x20AC;˘ ISN & Comply Works Member â&#x20AC;˘ COR/IRP Certified

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707,305, 5,>: -LIY\HY`

Polymers can selectively reduce water Â&#x201E; By Geoff Lee Lloydminster â&#x20AC;&#x201C; Itâ&#x20AC;&#x2122;s a fact in the oil and gas industry that every barrel of oil produced also yields between three and seven barrels of water and that is costly to manage.

Water is expensive to lift, dispose of, and can create associated problems with sand production, corrosion, scale and a decrease in oil and gas production.

More companies are taking a second look at Denis Blaquiere, a director with the Lloydminster Society selective water reduction systems to reduce the perŽĨ WÄ&#x17E;Ć&#x161;Ć&#x152;ŽůÄ&#x17E;ƾž ĹśĹ?Ĺ?ĹśÄ&#x17E;Ä&#x17E;Ć&#x152;Ć? Ć?Ĺ&#x161;Ä&#x201A;ĹŹÄ&#x17E;Ć? Ĺ&#x161;Ä&#x201A;ĹśÄ&#x161;Ć? Ç Ĺ?Ć&#x161;Ĺ&#x161; >Ä&#x201A;Ć&#x152;Ć&#x152;Ç&#x2021; ŽčÍ&#x2022; Ä&#x201A; meability of water zones with improved synthetic Ĺ?ĆľÄ&#x17E;Ć?Ć&#x161; Ć?Ć&#x2030;Ä&#x17E;Ä&#x201A;ĹŹÄ&#x17E;Ć&#x152; Ä&#x201A;Ć&#x161; Ć&#x161;Ĺ&#x161;Ä&#x17E; Ä&#x17E;Ä?Ä&#x17E;ĹľÄ?Ä&#x17E;Ć&#x152; Ć&#x161;Ä&#x17E;Ä?Ĺ&#x161;ĹśĹ?Ä?Ä&#x201A;ĹŻ ůƾŜÄ?Ĺ&#x161;Í&#x2DC; Žč Ĺ?Ć? Ä&#x201A; polymers. Ć?Ä&#x17E;ĹśĹ?Ĺ˝Ć&#x152; Ć?Ä?Ĺ?Ä&#x17E;ĹśÄ?Ä&#x17E; Ä&#x201A;Ä&#x161;Ç&#x20AC;Ĺ?Ć?Ĺ˝Ć&#x152; Ĺ?Ĺś Ć&#x2030;Ć&#x152;Ĺ˝Ä&#x161;ĆľÄ?Ć&#x;ŽŜ Ä&#x17E;ĹśĹ&#x161;Ä&#x201A;ĹśÄ?Ä&#x17E;ĹľÄ&#x17E;ĹśĆ&#x161; Ç Ĺ?Ć&#x161;Ĺ&#x161; The systems also called relative permeability Halliburton in Houston Texas. modifiers are finding new applications in combina-

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tion with stimulation as additives for fracturing fluids, acid diverters and as leak-off agents.

That was the focus of a talk by senior scientific advisor Larry Eoff from Halliburton in Houston Texas at the December technical lunch of the Lloydminster Society of Petroleum Engineers.

Eoff was invited to Lloydminster on Dec. 2 as an SPE distinguished lecturer with expertise in production enhancement including selective water reducing polymers. â&#x20AC;&#x153;These materials are designed to reduce water permeability more than they do oil or gas permeability,â&#x20AC;? said Eoff as opposed to sealants that block the flow of fluids completely. â&#x20AC;&#x153;They just simply reduce the permeability and make it a little more difficult for water to flow.â&#x20AC;?

Since they donâ&#x20AC;&#x2122;t block anything, they donâ&#x20AC;&#x2122;t require any zonal isolation. â&#x20AC;&#x153;There is definitely less risk with these materials compared to the sealants,â&#x20AC;? he said.

Water soluble polymers can be bullheaded from the surface down into the well. They work to reduce water permeability more than oil or gas to reduce the amount of produced water.

Water can get into a wellbore or reservoir from fluid flow behind casing or a watered out zone.

Water can also be produced when a hydraulic fracture intercepts a water zone or by water coning. â&#x20AC;&#x153;Thereâ&#x20AC;&#x2122;s been some recent papers out there that say we are spending anywhere between $40-50 billion a year dealing with water production,â&#x20AC;? said Eoff. â&#x20AC;&#x153;Not only are you spending money dealing with the water, you are losing money because of a decline in oil and gas.â&#x20AC;?

Eoff said the best candidate well for a water shutoff system is a situation where there is a shale barrier between the water producing zone and the oil or gas producing zone. â&#x20AC;&#x153;I can pump some sort of treatment (cement squeeze) just into that water zone and completely seal it off and hopefully completely stop the water,â&#x20AC;? he said.

The key to applying a water reduction system effectively he said is the need to conduct some diagnostics using logs to determine where the water is coming from.

He said water shutoff systems wonâ&#x20AC;&#x2122;t work where there is comingled oil and water and no way to pinpoint the source of the water.

Natural polymers have been tried for selective water reduction in the past, but Eoff said they have temperature limitations and can be degraded by bacteria.

X Page B27

^ ^ ^ J H S [ L J O Z \ Y ] L ` Z J V T Calgary, AB 403-263-8055

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707,305, 5,>: -LIY\HY` areas weâ&#x20AC;&#x2122;ve seen over the last few years,â&#x20AC;? said Eoff. â&#x20AC;&#x153;Especially on the frac side, it would be situations where a fracture grows into a water producing zone in an aquifer. â&#x20AC;&#x153;Putting a selective polymer into frac fluid can reduce the permeability of water. When we break into rock, itâ&#x20AC;&#x2122;s obviously under tremendous pressure. â&#x20AC;&#x153;So, if we have one of these selective polymers in there, it should leadoff into the matrix, absorb on the surface of the rock, and hopefully reduce the permeability to water so we slow the amount of produced water.â&#x20AC;?

Eoff noted when it leaks off into the oil or gas producing zone hopefully it wonâ&#x20AC;&#x2122;t do any damage to the oil or gas permeability, so it wonâ&#x20AC;&#x2122;t have any effect on how oil or gas is produced. â&#x20AC;&#x153;That was the basic idea behind combining the materials with frac operations,â&#x20AC;? he said.

His comparative case studies revealed those wells produce less water with the selective treatment.

Another growth area for selective water reducing systems is the use of polymers in acidizing to reduce water.

Acid is often pumped into multiple permeability zones which could end up stimulating water zones more than oil and gas zones.

A pre flush with the polymer has been shown to be an effective acid diverter to the oil and gas producing zones. â&#x20AC;&#x153;It it damages the permeability of the water, so when I come behind that with acid, it would get diverted away from that zone into another zone,â&#x20AC;? explained Eoff. â&#x20AC;&#x153;In many cases weâ&#x20AC;&#x2122;ll do stages.

We might pump a portion of one of these selective systems, some acid, a

dĹ&#x161;Ä&#x17E; Ć&#x2039;ĆľÄ&#x17E;Ć?Ć&#x; ŽŜ Ä&#x201A;ĹśÄ&#x161; Ä&#x201A;ĹśĆ?Ç Ä&#x17E;Ć&#x152; Ć&#x2030;Ä&#x17E;Ć&#x152;Ĺ?Ĺ˝Ä&#x161; ŽĨ Ć&#x161;Ĺ&#x161;Ä&#x17E; Ä&#x17E;Ä?Ä&#x17E;ĹľÄ?Ä&#x17E;Ć&#x152; Ć&#x161;Ä&#x17E;Ä?Ĺ&#x161;ĹśĹ?Ä?Ä&#x201A;ĹŻ ůƾŜÄ?Ĺ&#x161; Ĺ&#x161;Ĺ˝Ć?Ć&#x161;Ä&#x17E;Ä&#x161; Ä?Ç&#x2021; Ć&#x161;Ĺ&#x161;Ä&#x17E; >ĹŻĹ˝Ç&#x2021;Ͳ Ä&#x161;ĹľĹ?ĹśĆ?Ć&#x161;Ä&#x17E;Ć&#x152; ^Ĺ˝Ä?Ĺ?Ä&#x17E;Ć&#x161;Ç&#x2021; ŽĨ WÄ&#x17E;Ć&#x161;Ć&#x152;ŽůÄ&#x17E;ƾž ĹśĹ?Ĺ?ĹśÄ&#x17E;Ä&#x17E;Ć&#x152;Ć? Ć&#x2030;Ć&#x152;Ĺ˝Ç&#x20AC;Ĺ?Ä&#x161;Ä&#x17E;Ä&#x161; Ä&#x201A; Ć&#x2030;Ĺ&#x161;Ĺ˝Ć&#x161;Ĺ˝ Ĺ˝Ć&#x2030;Ć&#x2030;Ĺ˝Ć&#x152;Ć&#x161;ƾŜĹ?Ć&#x161;Ç&#x2021; ŽĨ Ä&#x201A;Ĺś Ä&#x201A;ĆŠ Ä&#x17E;ĹśĆ&#x; Ç&#x20AC;Ä&#x17E; Ä&#x201A;ĆľÄ&#x161;Ĺ?Ä&#x17E;ĹśÄ?Ä&#x17E;Í&#x2DC;

little bit more of the selective system and some more acid. We might go in cycles like that.â&#x20AC;?

Eoff noted the systems are not a cure-all for water production issues, but he added there is also growth potential for polymers in injector wells particularly in waterfloods. â&#x20AC;&#x153;We can simply string them into injection water if I have a high permeability â&#x20AC;&#x2DC;thief zoneâ&#x20AC;&#x2122; â&#x20AC;&#x201C; thatâ&#x20AC;&#x2122;s where

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Éş Page B26 â&#x20AC;&#x153;None of these materials has gotten a lot of usage down through the years. Few of these products have seen sustained use,â&#x20AC;? he said. â&#x20AC;&#x153;Over the last few years, there have been some advances in polymer chemistry so they interact with sandstone or carbonate formations where they would â&#x20AC;&#x2DC;adsorbâ&#x20AC;&#x2122; onto the formation surface very strongly. â&#x20AC;&#x153;They hold up under high temperatures; they can hold up under a high brine concentration. We are starting to see some materials that have been successful for a number of applications. â&#x20AC;&#x153;Almost everything that is available out there today is generally some sort of a synthetic polymer.â&#x20AC;?

One of the most effective are hydrophobically modified polymers that are still soluble in water and adsorb to the surface of sandstone or carbonate rock. â&#x20AC;&#x153;Water flowing through is not going to wash it off. It essentially just sticks to the surface of the rock,â&#x20AC;? explained Eoff. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s an adsorption mechanism. â&#x20AC;&#x153;It simply applies some drag on the water thatâ&#x20AC;&#x2122;s trying to flow through that treated zone. That reduces the permeability of the water zone.â&#x20AC;?

Eoff said you can think of the polymer as decreasing the size of â&#x20AC;&#x153;the pore throatâ&#x20AC;? of the matrix. That makes it harder for the water to flow.

There is no effect on the flow of oil or gas through a treated zone.

In addition to using selective systems to shutoff or slow down water production, there is growth potential combining them with fracturing, acidizing, sand control and coil tubing applications. â&#x20AC;&#x153;This is one of the biggest growth

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most of the water is going,â&#x20AC;? he said. â&#x20AC;&#x153;I can stream some of this material in and let it damage the permeability zone, and basically act as a diverter, diverting water away into other zones.â&#x20AC;?

Eoff wrapped up by reiterating selective systems do work and can be used for more than just standard water reduction operations in the oil and gas industry.

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(GPRQWRQ RLO UDLO WHUPLQDO RQ WUDFN Edmonton â&#x20AC;&#x201C; Kinder Morgan Energy Partners and Imperial Oil plan to spend a total of $270 million on a crude oil rail-loading facility in the Edmonton region.

Construction of the Edmonton Rail Terminal is already underway with an expected startup in December 2014.

The announcement of the joint venture came one day after the National Energy Board joint review panel granted conditional approval to Enbridgeâ&#x20AC;&#x2122;s $7.9 billion Northern Gateway pipeline on Dec. 19.

The terminal will have an initial capability to load one to three unit trains per day totaling 100,000 barrels with the potential to expand to up 250,000 barrels per day.

Thatâ&#x20AC;&#x2122;s nearly half of the 525,000 bpd capacity of Northern Gateway that will pipe crude oil from Edmonton to port facilities in Kitimat B.C. to access Asian markets.

The Edmonton terminal will be built in Strathcona County adjacent to the Imperial Oil refinery and about half a kilometer southwest of Kinder Morganâ&#x20AC;&#x2122;s Edmonton storage terminal.

Imperial Oil will be the base load customer and has subscribed for the start-up capacity through a long-term contract.

The partners are now actively marketing possible expansion capacity to potential third-party customers.

Kinder Morgan will invest approximately $100 million of the total cost in pipeline connections and two new staging tanks to be constructed within its Edmonton storage facility The project follows Kinder Morganâ&#x20AC;&#x2122;s applica-

tion on Dec. 16 to the NEB to expand its $5.4 billion Trans Mountain pipeline system from Edmonton to Burnaby British Columbia.

The expansion will triple the capacity of the pipeline to 890,000 bpd of crude oil.

While public debate continues over the pros and cons of pipeline construction, the oil industry continues to expand its crude-by-rail capacity.

A task force report has just been handed in to the British Columbia and Alberta governments that examines the idea of transporting oilsands crude via rail if proposed pipelines donâ&#x20AC;&#x2122;t get the green light, government documents show.

Itâ&#x20AC;&#x2122;s an idea the environmental group ForestEthics calls â&#x20AC;&#x153;underhanded.â&#x20AC;?

Itâ&#x20AC;&#x2122;s a â&#x20AC;&#x153;backdoor way for industry to bring tankers to the coast without the same sort of public oversight or public process that weâ&#x20AC;&#x2122;ve had around the Enbridge pipeline or would have around the Kinder Morgan pipeline,â&#x20AC;? said Ben West, campaign director for ForestEthics.

A joint provincial working group was announced by premiers Christy Clark and Alison Redford in July to develop recommendations related to energy exports and the opening of new export markets for products like bitumen for the two provinces, including pipeline and rail transport. â&#x20AC;&#x153;Rail can be considered a viable alternative to pipeline movement based on costs of transport,â&#x20AC;? the terms of reference for the group states. â&#x20AC;&#x153;If pipelines are not developed, rail will step into the void to deliver bitumen to the West Coast.â&#x20AC;?

West said the report raises safety questions, especially in light of two recent high-profile train accidents.

Oil transport by rail has become a contentious topic after a train containing crude oil derailed and exploded in Lac-Megantic, Que., in July, killing 47 people, and another train exploded without injuries in December in North Dakota.

The provincial working group was mandated to submit a report on crude-by-rail to both leaders by the end of December.

The Edmonton terminal will be constructed and operated by Kinder Morgan and will connect to both Canadian National and Canadian Pacific mainlines.

Both CN and CP railways expect to increase their transport volumes of crude by rail in the coming years.

The Edmonton terminal will be connected via pipeline to Kinder Morganâ&#x20AC;&#x2122;s tank facility and will be capable of sourcing all crude streams handled by Kinder Morgan for delivery by rail to North American markets and refineries. â&#x20AC;&#x153;This facility underlines the importance of our expanding Edmonton terminal hub and adds to our growing crude by rail terminal network,â&#x20AC;? said Bill Henderson, vice-president for Kinder Morgan Canada Terminals. â&#x20AC;&#x153;The facility will be built with state-of-the-art technology and will incorporate extensive safety and environmental protection features, and will be manned with trained personnel around the clock. â&#x20AC;&#x153;The Edmonton Rail Terminal will provide much-needed near term delivery capacity for Canadian producers and a strategic bridge to Trans Mountainâ&#x20AC;&#x2122;s major pipeline expansion, currently projected to be in-service in late 2017,â&#x20AC;? Henderson said.

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Pipeline News

SECTION C February 2014

Pipeline News was 2 sections this month.

Stay tuned for next month focus: Up In The Air