Pipeline News March 2014

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

March 2014

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FREE

Volume 6 Issue 10

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

April 2014 Focus

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'R $OO ,QGXVWULHV HQWHUV UHFHLYHUVKLS OD\V RII VWDII „ By Chad Saxon, Estevan Mercury and Brian Zinchuk, Pipeline News Estevan – Do All Industries Ltd., Saskatchewan’s only drilling rig manufacturer, has gone into receivership as of Feb. 6, resulting in the layoff of nearly the entire workforce. Over 150 people in both Estevan and Nisku, Alta. are out of work as a result. Do All president Bryn Jones told the Estevan Mercury the fabricating company had a receiver appointed by the court on behalf of its secured creditors and operations at the two locations have ceased. “As such the receiver is making the decisions as to whether the operations continue or don’t,� Jones said. “(The Estevan operation) is closed. It ceased operations on (Feb. 6).� Jones estimated that 155 people employed by Do All Industries have been laid off but he could not provide a break down of how many worked at the Estevan and Nisku operations. Asked whether or not those employees will receive their final paycheques, Jones said that is a question for the receiver. According to information obtained by the Mercury, the National Bank of Canada filed a notice of application asking for the appointment of a receiver, in Alberta Court of Queen’s Bench on Feb. 6 against Do All Industries, P&O Assets (also described in the documents as the Do All Group) and Korf Developments Limited. Alvarez and Marsal Canada has been appointed receiver of the three companies. On the company’s web site, it notes that pursuant to the court order, “the receiver is appointed over all of the Do All Group’s current and future assets, undertakings and properties of every nature and kind whatsoever, and wherever situated, including all proceeds thereof.� According to the application filed by the National Bank of Canada, advanced various loans to Do All after a credit agreement was reached on Jan. 28, 2013.The application says that Do all is in default under the terms of the credit agreement and a subsequent forbearance agreement. “Do All has, among other things, failed to make due and punctual payment of any principal amount, interest or fees due under the credit agreement, failed to eliminate a borrowing base shortfall, failed to comply with various financial covenants and reporting covenants and entered into transactions with affiliates with a view to

limiting collateral value of the bank.� In all, the application states that Do All owes the National Bank CDN$30.69 million. It also notes that the bank has lost confidence in Do All’s ability to manage its business and requires the appointment of a receiver and manager over Do All and P&O to oversee the wind down of operations and to conduct an orderly realization of both entities assets. Furthermore, it notes Do All has advised the bank through its legal advisers that the company has no viable restructuring options available and that its account was in overdraft to the point where it would not be able to meet its payroll on Feb.7. The documents also include the receivership order, which lays out the powers of the receiver. Do All was established in 2000 by Estevan resident Kordell Korf. The company had enjoyed significant growth since it was founded, becoming one of the leading providers of various oilfield products including complete drilling rigs. Along with the operation in Nisku, Do All also opened a location in Glenburn, North Dakota. Estevan general manager Johnny Eberle spoke to Pipeline News on Feb. 18, but was limited in what he could say. “We are in receivership at this time,� he said. At their main office building on the east side of Estevan which was completed in the spring of 2013, copies of the receivership order and the business cards of the receiver were being handed out. The companies named in the order had properties throughout the city and Rural Municipality of Estevan. That order, under the Bankruptcy and Insolvency Act, was granted by the Court of Queen’s Bench in Calgary on Feb. 6 by Justice A.D. Macleod in chambers. Do All’s Estevan and Nisku, Alberta, locations have been shut down, but according to Eberle, their American operations in Glenburn, N.D., are not affected. Additionally, Southeast Electric in Estevan is not affected, either. As for the manufacturer’s product, Eberle said drilling rigs were “a part of it.� In recent years Do-All has produced nearly all of the new rigs operated by small, local drilling operations in southeast Saskatchewan. This has included Eagle Drilling of Carlyle and Totem Drilling of Carnduff, now part of CanElson Drilling; Vortex Drilling of Radville; Red Dog Drilling and Stampede Drilling of Estevan; D2 Drilling of

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Griffin and Betts Drilling of Carnduff. These were typically telescopic double rigs. On the June 22, 2012, Do All made an unsolicited $34 million offer for Nisku-based competitor Hyduke Energy Services, another rig builder. At the time, Daily Oil Bulletin reported, “Hyduke Energy Services Inc. has entered into a definitive sales agreement with Do All Industries Ltd., a private oil and gas equipment and services company based out of Estevan, Saskatchewan. “Under the agreement, Do All will acquire all of the issued and outstanding common shares of Hyduke, including any shares issued upon the exercise of options to acquire Hyduke shares, for $1.37 per share in cash, or approximately $34 million in aggregate. “The cash consideration represents a 109 per cent premium over the closing price of the Hyduke shares on the Toronto Stock Exchange for the 20 trading days ending on June 20, 2012, and a 108 per cent premium over the 66 cents per share closing price of the Hyduke shares on the exchange on June 20, 2012.â€? The bid was rebuffed, however, with Hyduke saying in an Oct. 9, 2012 press release, as reported by Daily Oil Bulletin, “While the board’s review of this unsolicited offer is not complete, Hyduke said it is clear that the purchase price offered is ‘significantly undervaluing’ the company’s business. “Do All is offering to buy Hyduke for approximately $20 million (based on 83 cents per share and 24.16 million common shares outstanding). “Compared to Hyduke’s most recently released financial statements ( June 30, 2012), the offer of $20 million is $13 million less than the $33 million shareholder equity in Hyduke; this represents close to a 40 per cent discount to book value,â€? the company said. Do All extended its offer period, but that was terminated by Nov. 23, 2012. On Feb 18, 2014, Estevan Mayor Roy Ludwig said of the receivership, “It’s very unfortunate. If there’s any positives to come of this, we’re still very busy, so hopefully the employees will find work very quickly.â€? Indeed, one manager at a nearby firm who declined to be named told Pipeline News he had had 10 applications that day from former Do All workers, five days after the receivership order was granted. “That’s a huge hit to the economy,â€? said Brett Campbell, president of the Estevan Oilfield Technical Society.

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Clock ticking on Keystone XL ruling

BRIEFS Crescent Point to pay dividend

Crescent Point Energy Corp. confirms that a cash dividend to be paid on March 17 in respect of February production, for shareholders of record on Feb. 28, will be $0.23 per share. These dividends are designated as eligible dividends for Canadian income tax purposes. Crescent Point Energy Corp. is a conventional oil and gas producer with assets strategically focused in properties comprised of high-quality, long-life, operated light and medium oil and natural gas reserves in United States and Canada.

CAODC annual general meeting The Canadian Association of Oilwell Drilling Contractors will hold their annual general meeting and luncheon in Calgary on March 7 at the Telus Convention Centre. CAODC will announce the results of board elections to its members at 10 a.m Tickets for the lunch are available to both members and non-members. Doors open at 11:30 a.m. with the speaking program to begin at noon. The keynote speaker for the luncheon will be Ms. Kelly Block, MP and Parliamentary Secretary to Joe Oliver, Minister of Natural Resources Canada. Briefs courtesy Nickle’s Daily Oil Bulletin

„ By Geoff Lee Pipeline News Calgary – TransCanada Corporation’s proposed Keystone XL pipeline continues to be on the clock with a decision at least a few months away. The process was set in motion dating back to Sept. 19, 2008 when the first application for Keystone XL was submitted. One of the final deadlines to submit public comments on the Final Supplemental Environmental Impact Statement (EIS) on the proposed Keystone XL pipeline runs out on March 7. Then the final countdown begins to determine if the project by Calgary-based TransCanada Corporation is in the U.S. national interest. If approved with a U.S. Presidential Permit, Keystone XL will transport up to 830,000 barrels per day of crude oil from Alberta, North Dakota and Montana to refineries on the U.S. Gulf Coast. Canada’s National Energy Board approved the Canadian portion of the pipeline on March, 11, 2010. TransCanada’s chief executive Russ Girling expects the project will get a U.S. permit based on the conclusion of the EIS report that the pipeline would not have a significant impact on climate change. The report addresses a key concern raised by Obama last June when he said carbon emissions will be “absolutely critical� in his decision on whether to approve the project. The report states Keystone XL is “unlikely to significantly impact the rate of extraction in the oilsands or the continued demand for heavy crude oil at refineries in the United States based on expected oil prices, oilsands supply costs, transports costs and supply-demand scenarios.� The U.S. State Department released the 11-volume EIS report on Jan. 31. TransCanada is pleased the report’s conclusions are consistent with results contained in over 15,000 pages of detailed scientific analysis in four previous environmental reviews of Keystone XL dating back to the spring of 2010. “The environmental analysis of Keystone XL released today once again supports the science that this pipeline would have minimal impact on the environment,� said Girling in a news release. “Facts are stubborn things,� tweeted Saskatchewan Pre-

mier Brad Wall upon hearing the EIS report concludes the XL pipeline would not substantially worsen carbon pollution. Alberta Premier Alison Redford was also buoyed by the positive environment analysis of the Keystone XL by the EIS report. “The findings are consistent with the analysis Alberta has put on the table in our various face-to-face meetings with key decision makers in Washington and our submissions made on this important file,� said Redford in a statement. “The Final Supplemental Environmental Impact Statement is an important step toward approval of a pipeline that will build our economic partnership with our friends in the U.S. and help foster North American energy security and independence.� Girling stressed Keystone XL is “not about energy versus the environment,� but where Americans want to get their oil. “Keystone XL will displace heavy oil from places such as the Middle East and Venezuela, and of the top five regions the U.S. imports oil from, only Canada has substantial greenhouse gas regulations in place,� he said. Today, Canada ships 99 per cent of its oil exports to the U.S., and U.S. companies are the largest foreign investors in Canadian oil and gas. The U.S. national interest determination review will consider a variety of factors including energy security; environmental, cultural, and economic impacts; foreign policy; and compliance with relevant federal regulations and issues. “I believe that this project continues to be in the national interest of the United States for two main reasons: supporting U.S. energy security and the thousands of jobs our multibillion dollar project will create,� said Girling. Girling said the number one focus for TransCanada will be ensuring the pipeline is one of the safest and most technologically advanced pipelines in North America. That expectation is stated by the EIS report that notes the 59 conditions and dozens of spill prevention and mitigation measures ensures the pipeline will “have a degree of safety over any other typically constructed domestic oil pipeline system under current code.� The report concludes Keystone XL will support approximately 42,100 direct, indirect and induced jobs and approximately $2 billion in earnings throughout the U.S.

“I believe that this project continues to be in the national interest of the United States for two main reasons: supporting U.S. energy security and the thousands of jobs our multi-billion dollar project will create.�

- TransCanada CEO Russ Girling

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From Alexander and BRIEFS Renegade, a Spartan is born CumminsCalgary – Alexander Energy Ltd. and Renegade Petroleum Ltd. announced on Feb. 11 that they have entered into an agreement for the combination of Alexander and Renegade. The new entity will be renamed Spartan Energy Corp., trading on the TSX Venture Exchange under the symbol “SPE.� Prior to the takeover, Alexander was much smaller than Renegade, with the most recent details on their website saying they produced an average of 805 barrels of oil equivalent per day during the third quarter of 2013. Renegade, on the other hand, posted its annualized production guidance in February at 5,700 to 5,900 boepd. A press release on the Renegade website, stated their intention is to create a premier light oil focused high-growth company. The combined company will maintain a Saskatchewan-focused and concentrated asset base of high netback, low decline light oil assets which, along with a strong financial position and significant financial flexibility, will position the combined company to provide investors with consistent, per share growth. The combination of Alexander and Renegade will be effected by way of a plan of arrangement under the Business Corporations Act (Alberta). “The transaction further advances Alexander’s stated business plan of promoting aggressive growth through a targeted acquisition and consolidation strategy, complemented by development and exploration drilling. The combined company will have a high quality asset base characterized by large oil in place, low declines and a significant inventory of development drilling opportunities with attractive capital efficiencies,� the release said. Spartan will be led by the existing management team and board of directors of Alexander. The Alexander management team is led by Richard (Rick) McHardy as president and chief executive officer; Michelle Wiggins as vice-president, finance and chief financial officer; Fotis Kalantzis as vice-president, exploration; Eddie Wong as vice-president, engineering; Albert Stark as vice-president, operations and Tom Boreen as vicepresident, geology. The release stated, “The Alexander executive team has a solid track record of creating value in high-growth, light oil and gas companies through an integrated strategy of acquiring, exploiting and exploring attractive plays and opportunities. “The transaction further advances Alexander’s stated business plan of promoting aggressive growth through a targeted acquisition and consolidation strategy, complemented by development and exploration drilling. The combined company will have a high quality asset base characterized by large oil in place, low declines and a significant inventory of development drilling opportunities with attractive capital efficiencies. “ Renegade’s press release stated, “The pro forma company will become one of the dominant light oil producers in southeast Saskatchewan. Renegade’s assets are focused in several large, high quality, light oil reservoirs with significant original oil in place and low recovery factors to date relative to analo-

gous pools. “Alexander believes that there is significant unrealized value in the Renegade assets. Management of Alexander has identified numerous workover and recompletion opportunities along with an extensive inventory of low risk development drilling opportunities. They noted the company will benefit from an experienced board of directors and technically focused management team with a proven track record of value creation. The increased market capitalization will provide enhanced liquidity to both groups of shareholders and will improve the combined company’s access to capital and cost of capital. The combined company will have a significantly improved balance sheet and will be well positioned to grow through further acquisitions and development drilling. The integration of the operations of Alexander and Renegade will allow the combined company to realize improvements in operating costs and corporate overhead costs which will result in improved netbacks and cash flow. As well, the transaction is intended to be structured as a tax deferred rollover for Renegade Shareholders. Renegade’s February 2014 corporate presentation available on their website notes its primary operations are in the Williston Basin and Dodsland areas. In southeast Saskatchewan, they have 200 net sections and 154 net undeveloped sections, with 159 net locations and 85 net un-booked potential locations. This produces roughly 3,400 boepd. The producing formations include Souris Valley, Tilston, Frobisher, Alida and Midale along subcrop trends. Areas include Queensdale, Wordworth, Souris Valley, Crystal Hills Success, and Cantal. In the Viking area of west central Saskatchewan, there are 9,734 net acres, with 118 gross locations (107 net). Its production comes in around 2,000 boepd. All of the production is from the Viking formation. In December, Renegade sold 350 boepd of non-core production assets in southeast Saskatchewan, including 5,142 acres of land, for $32.5 million. Then in January, Surge Energy picked up 1,250 boepd from Renegade for $109 million. Proceeds from that say were to be used to repay debt. Prior to its acquisition, Renegade had forecast plans to drill 18 gross wells (16 net) in 2014 in southeast Saskatchewan, and a further 21 gross (20 net) in west central Saskatchewan. As Spartan, it will have “A high quality, Saskatchewan focused asset base with high netbacks and a low decline rate asset, providing Spartan an attractive platform for growth; high working interest properties combined with companyowned infrastructure ideally positioning Spartan to execute on its future growth plans,â€? according to the release. Current production of 6,150 boepd, of which approximately 93 per cent is liquids weighting. This production has a base decline rate of approximately 24per cent . The capital efficiencies are approximately $25,000 - $30,000 per barrel of oil equivalent (based on first year average production). ɸ Page A8

Peterbilt SuperTruck achieves 10.7 MPG A U.S. Cummins- Peterbilt Motors Class 8 SuperTruck tractor-trailer achieved 10.7 mpg in a January demonstration under real-world driving conditions. SuperTruck averaged a 75 per cent increase in fuel economy, a 43 percent reduction in greenhouse gas (GHG) emissions and an 86 per cent gain in freight efficiency in 24-hour, head-tohead testing against a 2009 baseline truck – all significant improvements. The Cummins-Peterbilt SuperTruck was on display for U.S. President Barack Obama’s announcement on Feb. 18 announcement of firm deadlines for the next generation of national fuelefficiency and GHG emissions standards for heavyduty commercial vehicles. The goal of the SuperTruck program, initiated by the U.S. Department of Energy is to improve longhaul Class 8 vehicle freight efficiency.

Briefs courtesy Nickle’s Daily Oil Bulletin

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PIPELINE NEWS

EDITORIAL

Mission Statement: Pipeline News’ mission is to illuminate importance of Saskatchewan oil as an integral part of the province’s sense of community and to show the general public the strength and character of the industry’s people. Publisher: Brant Kersey - Estevan Ph: 1.306.634.2654 Editorial Contributions: SOUTHEAST Brian Zinchuk - Estevan 1.306.461.5599 SOUTHWEST Swift Current 1.306.461.5599 NORTHWEST Geoff Lee - Lloydminster 1.780.875.5865 Associate Advertising Consultants: SOUTHEAST SASK. R5 -. 0 (5g8ifl8lij8hlkj Cindy Beaulieu Candace Wheeler Kristen O’Handley Deanna Tarnes Teresa Hrywkiw R5 ,&3& 5g8ifl8jki8hkhk Alison Dunning NORTHWEST SASK. & ALBERTA R5 &)3 '#(-. ,5g8mnf8nfn8imfl Krista Thiessen 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 &-)( To submit a stories or ideas: Pipelines News is always looking for stories or ideas from our readers. To contribute please contact your local contributing reporter. Subscribing to Pipeline News: Pipeline News is a free distribution newspaper, and is now available online at www.pipelinenews.ca Advertising in Pipeline News: Advertising in Pipeline News is a newer model created to make it as easy as possible for any business or individual. Pipeline News has a group of experienced staff working throughout Saskatchewan and parts of Manitoba, so please contact the sales representative for your area to assist you with your advertising needs. Special thanks to JuneWarren-Nickle’s Energy Group for their contributions and assistance with Pipeline News.

Published monthly by the Prairie Newspaper Group, a division of Glacier Ventures International Corporation, Central Office, Estevan, Saskatchewan. Advertising rates are available upon request and are subject to change without notice. Conditions of editorial and advertising content: Pipeline News attempts to be accurate, however, no guarantee is given or implied. Pipeline News reserves the right to revise or reject any or all editorial and advertising content as the newspapers’ principles see fit. Pipeline News will not be responsible for more than one incorrect insertion of an advertisement, and is not responsible for errors in advertisements except for the space occupied by such errors. Pipeline News will not be responsible for manuscripts, photographs, negatives and other material that may be submitted for possible publication. All of Pipeline News content is protected by Canadian Copyright laws. Reviews and similar mention of material in this newspaper is granted on the provision that Pipeline News receives credit. Otherwise, any reproduction without permission of the publisher is prohibited. Advertisers purchase space and circulation only. Rights to the advertisement produced by Pipeline News, including artwork, typography, and photos, etc., remain property of this newspaper. Advertisements or parts thereof may be not reproduced or assigned without the consent of the publisher. The Glacier group of companies collects personal information from our customers in the normal course of business transactions. We use that information to provide you with our products and services you request. On occasion we may contact you for purposes of research, surveys and other such matters. To provide you with better service we may share your information with our sister companies and also outside, selected third parties who perform work for us as suppliers, agents, service providers and information gatherers.

Lots of things to do this break-up In a few weeks spring break-up will be here and the oilpatch will take its annual breather from the frenetic pace of the winter drilling season. Saskatchewan’s active drilling rig count for January and February was up about 10 per cent over 2013 and on par with 2012. That helps a bit in making up for a slow summer last year, but not entirely. Even so, everyone’s going to welcome a breather as it is the season for the final curling bonspiels and training. On March 12-16 is the Lloydminster 47th Annual Heavy Crude Open Bonspiel. They will honour Vic Jezowski as the oilman of the year. Mar. 19 is the South East Environment and Safety Seminar at the Saskatchewan Energy Training Institute in Estevan. It will feature topics as diverse as leadership in the Antarctic to traffic safety. That night, the Estevan Chamber of Commerce will have retired Lt.-Gen. Andrew Leslie speaking at the Day’s Inn for its annual general meeting. He, too, will focus on leadership. The Estevan Oilfield Technical Society’s 55th Annual Open Bonspiel is March 27-30. It’s the unofficial wrap-up of the winter drilling season, and a good time to let off steam. The Annual Lakeland Regional Skills Competition for high school trades will be held at the Vermillion campus of Lakeland College on May 2. On May 7 is the 5th Annual bi-provincial Try-ATrade Expo in Lloydminster, to be held at the Lloyd-

minster Exhibition Grounds. Come May 8-9, Redvers will host its bi-annual Redvers & District Oil Showcase. This local oil show has developed a strong following, highlighting oilfield service companies in the area. They’ve secured Tim McMillan, minister responsible for Energy and Resources, as the banquet speaker. The biggest Kahuna is the Williston Basin Petroleum Conference May 20-22. It’s Bismarck, N.D.’s turn to host the event this year, and it promises to be another record breaker. They doubled their indoor exhibition space, and yet it still sold out in four minutes. That’s probably quicker than a Rolling Stones or Lady Gaga concert. With North Dakota brushing up against the one million barrels per day of oil production mark, it’s a good bet we’ll hear at that conference the magic number has been surpassed by May. The last event of note in southeast Saskatchewan is the brand new Estevan Energy Expo, which will take place June 11-13. Sometime during this spring the Boundary Dam Carbon Capture Project is expected to get up and running, so watch out for announcements on that front. This includes the Petroleum Technology Research Centre’s Aquistore project. They are expected to be a big part of the Estevan Energy Expo. McMillan will again be speaking, as will a number of Saskatchewan-based energy experts. There’s plenty to do this spring. You just have to get in your truck and go!

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OPINION

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Drones will soon be everywhere Unmanned aerial vehicles, or drones, are remote-controlled flying aircraft. The have long been used by the military, going as far back as the Second World War and then in Vietnam. Initial experiments even took place in the First World War. They have really come to the fore, however, in the Iraq and Afghanistan wars, especially after the United States started mounting Hellfire missiles on their larger drones. Instead of just an eye-in-thesky, drones have become hunter-killers, able to lurk high in the sky for countless hours, much longer than the endurance of a typical pilot in a fighterbomber. That usage, in places like Pakistan and Somalia, have thus given drones a bad name. In Pakistan, some people have trouble sleeping at night due to the buzz of ever-present drones overhead, raining death down on suspected terrorists at a whim. What we’ve seen in recent years is the emergence of civilian usage of drones, like many other (maybe even most) technologies. This has been commonplace throughout history, the civilian adaptation of military technologies. The first engineers were military in nature, building castles and the siege engines to attack them. That’s why today we have “civil� engineers, whose jobs are to build roads and bridges, not trenches and fortresses. The parachute and airplane really saw their development blossom during the First World War, and for airplanes especially, during the Second World War. The purpose of the global positioning

system was initially to ensure you knew where your submarine was precisely so that you could launch your nuclear ballistic missile and hit Red Square in Moscow just as precisely. Now it’s used on your iPhone to find the closest sushi bar. The guidance system from intercontinental ballistic missiles is the grand-daddy technology of directional drilling in the oilfield today. So too it is with drones. The addition of GPS guidance has taken small multi-rotor helicopters have gone from a hobbyist’s toy to indispensable tools. Lithium-polymer batteries dispense with troublesome internal combustion engines seen on remote control model airplanes of old. You can now get a drone with a gyroscopically-stabilized GoPro high resolution camera that will transmit live video to your iPhone mounted on your controller. That same drone can fly 16 kilometres or 25 minutes on just one high-capacity lithium polymer battery, if you really push its limits. That package can be had for about the same price as a well-equipped Apple MacBook Air laptop. I got my first one last summer. After six years as an air cadet, and seven years in the reserves as an air cadet instructor, I finally gained the ability to fly. The learning curve with a GPS-guided unit is so short, you can get the basics in about five minutes. I did, but I also had the advantage of hundreds of hours on computer flight simulators in my youth. I also instructed cadets for years on the principles of flight, so your mileage may vary. Within a couple

days, I could fly my drone in circles five feet around a person and not give them a haircut. When you take your hands off the controls, it just stays there. If you took your hands off the controls for a second with an old-style RC plane or helicopter, you were picking up the pieces a few seconds later. If the drone loses signal from its transmitter, it will “fly home� to where it took off from. While Amazon scored a publicity coup with its suggestion of using small muti-rotor drones for local deliveries of up to five pounds, the reality is the United States military has drones doing that job already, with a 6,000 pound capacity. Most drones, however, are used for one purpose – putting a camera in the sky. They are orders of magnitude easier and cheaper to operate for small-scale projects than a manned airplane or helicopter, whose operating costs can run in the hundreds of dollars per hour (Cessna) to thousands per hour (helicopter). I picked up my first drone last year because I wanted to be on the forefront of technology. They are the brick cellphones of today. They may not be perfect yet, but soon they will be commonplace, and their usage in five years will have us wondering how we lived without them. Brian Zinchuk is editor of Pipeline News. He can be reached at brian.zinchuk@sasktel.net

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Game on: rocks vs. pucks Despite hockey being our national sport, at this time of the year oilfield curling tournaments are more popular than oilfield hockey events. That’s understandable despite declining or steady registration numbers at many oilmen’s bonspiels. Come February or March it’s bonspiel season, with large annual ones held in hockey-mad communities such as Lloydminster, Unity, Wainwright, Kindersley and Estevan. Cities like Red Deer and Grande Prairie hold seasonal oilfield hockey events, but in most towns, oilfield workers who play hockey have their own league playoffs. Many curlers also play in leagues throughout the season, but a bonspiel is easier on the body and requires less skill at the base participation level than hockey does. Let’s face it, if you can’t skate, a hockey tournament is not where you want to be. Having played in hockey tournaments myself, I can attest to the fact that you have to be in game shape to endure three or four games over a weekend. Bonspiels appeal to the mass of oilfield workers who are not as competitive and prefer the social aspect of curling to the grind of hockey. One of the attractions of bonspiels is that noncurlers can attend and be welcomed for giving it a

try. No team in a hockey tournament wants a player who has never played before. It would be like playing a man short. Just about everyone who curls goes home with a flight prize or an entry gift that may bring them back next year. Hockey tournaments are great, but when it comes to cost, a bonspiel is easier on the pocketbook. A broom and shoes for curling are way cheaper than hockey gear or goalie equipment if you don’t have that stuff. Also with so many local bonspiels going on, most curlers can sleep in their own beds to participate in a tournament and still get some work done. Travel costs go up with oilmen’s hockey tournaments because most of them are long distant destinations. With bonspiels, it’s a lot easier to sign up four or five players than commit a team of 20 co-workers to travel and play. Also it’s easier to find a replacement curler if one player drops out than it is to find an eligible last minute hockey player. Maybe if someone could combine curling and hockey, curling at least might appeal to more players of both sports. How about some allowable elbow play between skips in the house to spice things up?

Many tied curling games could go to a shootout with a closest to the button shot deciding the outcome. When it comes to fun and creativity, nobody does it better than the organizers of the Unity Oilpersons Bonspiel who include an indoor putting contest for prizes. It takes places during the banquet and anyone can play to help raise money for the local club. That might attract some of the hockey guys since hockey and golf go hand in hand. The fun quotient might go up by including a special five end flight for beginners or players who are time and skill sensitive, but still want to have fun. Anyone with a sore back or trick knee would love that option. Most organizers of curling or hockey tournaments might say things are fine just the way they are, but it’s getting tough to attract new players to both events with so many competing activities these days. If everything stayed the same, we would all have our original birth weights. Imagine trying to curl or shoot the puck if you still weight six pounds, three ounces. All kidding aside, bonspiel and hockey tournaments are all about socializing, staying fit and networking in the brotherhood of the oilpatch. Game on.

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)HEUXDU\ ODQG VDOH VWRNHV 0F0LOODQ Regina – Energy and Resources Minister Tim McMillan was stoked by the $50.7 million revenue generated by the February sale of petroleum and natural gas rights. The amount raised was the second highest February sale on record, and a substantial increase over land sales in the previous year. “This land sale is a reflection of the competitive investment climate and the great resource we have here in the province,� said McMillan. “With new records being set in drilling and oil production, the future of the Saskatchewan oil industry looks bright.� The average price paid in February was $1,816 per hectare with specific interest shown in Bakken areas along the Saskatchewan-U.S. border. The Weyburn-Estevan area received the most bids with sales of $46.6 million.

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2007 Kenworth T800B Stk #930813 - c/w Gardner Denver Tee 4x5 pressure pump, built 08/06, Hydraulic drive T&E load pump, No Corode two compartment tank, 4400/6600 liter split, TC 412 spec, lined, Built June /2010, s/n 3290610, Tool boxes, 1’ hose reel , no hose, Shan Electrical OilďŹ eld services Monitor, Finch 5332 E level monitor, 30 “ bunk, dual exhaust, Alberta Safetied 02/2014. $295,000 2006 Kenworth T800 Stk #986786 - C/w 3x5 gardner Denver triplex pump, T&E product pump, 6-1.5 inch steel line pipe, 2 chicsans, new composite 2â€? load hose, 2012 11m3 single compartment aluminum lined 406 tank, painted on the outside, Titan gauge, 30 Lb ďŹ re ext. air shut down, Ready tom work.; 8x2 $259,000

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The Lloydminster area was next at $2.7 million, followed by the Swift Current area at $731,874 and the Kindersley-Kerrobert area at $707,351. “The addition of 82 leases and exploration permits in this sale shows industry continues to recognize Saskatchewan as a top jurisdiction to invest in,� McMillan said. The highest price paid for a single parcel was $14.1 million. Stomp Energy Ltd. acquired the 2,072-hectare exploration licence north of Oungre. The highest price on a per-hectare basis was $16,148. Sandstone Land & Mineral Company Ltd. bid $4.2 million for a 259-hectare lease north of Lampman. The next sale of Crown petroleum and natural gas dispositions will be held on April 7.

$OH[DQGHU (QHUJ\ WDNLQJ RYHU 6DVNDWFKHZDQ IRFXVHG 5HQHJDGH 3HWUROHXP W Page A5 The assets of the combined company provide operational diversity and an extensive inventory of 389 (316 net) horizontal drilling locations (of which 228 (191 net) are currently unbooked) across large oil in place assets that are typified by low risk, repeatable drilling, year round access and extensive existing infrastructure. Operating netbacks are in excess of $51 per barrel, and there is 27.24 million boepd of proved plus probable reserves, generating a reserve life index of over 12 years based on current production. On the financial side, Renegade notes there will be “significant financial flexibility with estimated pro forma net debt of $107 million against a $278 million anticipated credit facility.� The sale is expected to go to a shareholders vote on or about March 31, 2014.

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One Woman’s Perspective on Life, Liberty and the Pursuit of Land Locations By Nadine Elson She leaned in and whispered in his ear. The dark enveloped them but for the fireflies in the Mason jar on the table. The blues music blocked out her voice, but he was intrigued I could tell. She was cute, perky, and blonde. I could have been worried about her whispering in my husband’s ear. I wasn’t. She was a nun. And a happy nun, judging by her smile. Donna leaned in and whispered to me. “What would you like for dessert?â€? It was deep winter, cold and blustery outside. The official start of spring was still a good six weeks away. Many of our friends had fled the winter for warm holidays. Our philosophy was different. If you can’t beat winter, join winter. So while it was deep winter outside, we were celebrating “Deep Winterâ€? inside. It was the Deep Winter Blues Revival in the warmth and comfort of The Happy Nun CafĂŠ in Forget, SK. The blues music and delicious food were guaranteed to warm up even the coldest night. Our friends had introduced us to The Happy Nun CafĂŠ several winters ago during the Deep Winter Blues Revival, an annual February event. As a hotshot driver, I had often been by Forget, I had often been near Forget, and I had even once driven through Forget by mistake, with a trailer full of sucker rods looking for the right road to my lease, but I had never spent an evening in Forget. Until that night, I wasn’t even aware that there was a CafĂŠ in Forget. I remember Bruce asking for directions to The Happy Nun. I had rolled my eyes. It was hamlet. How long

would it take to find? Not long, as it turned out. It was well marked, well lit, and the music coming out from the outside speakers was a big hint, not to mention all the parked cars around the building. Since then our Februarys have included the Deep Winter Blues Revival hosted by the Ananda Arthouse Concert Series, both endeavours conceived and executed by Shannon and Don Shakotko, a former music teacher and school principal. From their website, I learned that they chose Forget on purpose. They wanted to create “a third place (somewhere outside of work and home) where people could gather to share the important things of life.â€? They started with The Ananda Arthouse hosting house concerts in their house, a former Catholic rectory, eventually purchasing the village recreation center and tenderly restoring it. The Happy Nun CafĂŠ is open Friday and Saturday nights. The menu is limited but changes constantly, for both the benefit of their many repeat customers as well as themselves as cooks. As much as possible, they use seasonal and local food, and it is cooked with the skill one might expect at an urban restaurant or resort. On those nights that the concert series is on, the live music is the added bonus. I saw friends from Estevan, and we laughed how we had to travel 45 minutes to see each other. Between sets, there is ample opportunity to visit with old friends and make new ones. I saw men I knew from the oilpatch, nearly unrecognizable without coveralls and hardhats. As we drove home, the stars and the lights

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Be happy in Forget from the many drilling rigs in the immediate area were nearly lost in the swirling snow, and I contemplated the pleasant evening. I wondered if the French Sisters of the Cross who came at the beginning of the last century from France would be pleased. The seven Sisters had come in the middle of winter to the middle of nowhere, to Forget to build St Joseph’s Academy and Convent. They did it in three stages with vision, determination and God’s favor. I couldn’t help but notice the parallel with what Shannon and Don have done with the properties in Forget. They, too, have done it in stages with vision, determination, and God’s favor. I think the sisters would be happy. I know that we were happy that night with good food and fine music. “Don’t worry. Be happy!� Great advice for beating the winter blues. Who would have thought you could do it in Forget? 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.

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SEESS line-up announced Estevan – The Saskatchewan Energy Training Institute in Estevan will again play host to the South East Enviroment and Safety Seminar (SEESS) this March 19. Initially it had been planned to take place in Weyburn, as the event traditional alternates between Estevan and Weyburn, but the new Triple C Centre there was not available. The one-day event provides a broad spectrum of topics and speakers. The lobby is used to host several display booths from relevant companies and agencies. The main goal of the event is to provide a quality learning opportunity for employers and employees. Organized by a group of volunteers with vari-

ous energy and environmental backgrounds, the seminar succeeds at attracting presenters with expertise in environmental and industry safety areas. As support for the event grows from year to year, the committee is able to pursue high profile speakers. A continental breakfast will be offered, with a lunch to follow, according to Dave Harazny, one of the organizers with Southeast Regional College. Naturalist and international conservation advisor Brian Keating kicks off the day with a keynote presentation at 8 a.m. Having recently travelled to Antarctica where he retraced Ernest Shackleton’s route of exploration and survival, Keating will touch upon leadership during his presentation. “Brian’s presentation will illustrate the brilliant leadership qualities that enabled Shackleton to return home without the single loss of life, illustrating lessons of life and leadership, courage and endurance,� according to Harazny. Next up is Curt Minard. Originally from southeast Saskatchewan, Minard endured a workplace accident in 2008, when the power line technician was electrocuted with 14,400 volts of electricity. He will talk about conquering the odds. Jim Balmer is a safety consultant from Alberta. He will go into traffic issues in Saskatchewan and Alberta. Cameron McNaughton, Environmental Engineer, will discuss baseline soil gas and surface CO2 flux work at the Aquistore site. The other keynote speaker is Dr. Mark Moyad, who will provide health advice on how to become stronger and healthier mentally and physically. Dr. Moyad is the Jenkins/Pokempner director of Complementary and Alternative Medicine at the University of Michigan Medical Center (Department of Urology). He is the co�author or author of 10 books including 2 more books coming out in 2014. In 2009 he was named as one of the most influential doctors in the U.S. from a USA Today survey. In 2012 Dr. Moyad also became the founder and President of the Promoting Wellness non�profit foundation whose primary purpose is to improve access and the health and well�being of indigent patients around the world (“to practice random acts of medical kindness�). As of mid-February, 95 people had registered. They can take up to 200 participants. In 2013, 175 people attended. Registration is available online at www.seess.ca.

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Kerrobert – There are few takeoffs and landings of planes these days at the Kerrobert Airport despite the frequent buzz of airplanes heard flying overhead conducting pipeline or seismic surveys. “In the summertime I would say we get about two to three planes coming in and out of here a week,� said Mayor Erhard Poggemiller. “In the wintertime, I would say we would get about half a dozen planes throughout the winter. “It used to be a little busier when we had the court house here. A few lawyers would fly in.� Poggemiller attributes the airport underutilization to the turf runways and the fact there are longer, paved runways in nearby Luseland, Macklin and Kindersley that pilots prefer. There has been no discussion to mothball the Kerrobert airport however, despite its limited use. “No, definitely not, especially with all this other oil and gas activity increasing in the area,� said Poggemiller. “I imagine sometime there’s going to be some pressure put on to upgrade the runway. Personally I would like to see it upgraded – see it paved.� If it were paved, it could see greater use this spring when Torq Transloading Inc. plans to begin construction of its $100 million crude by rail Kerrobert Terminal southeast of

town. “That may come. We’d be open to ideas, but the town itself doesn’t have the finances to pay that,� said Poggemiller about upgrades. “The town itself wouldn’t be able to afford pavement on that. We first of all have to get our streets paved before we pave the airport.� It costs the town between $5,000 to $6,000 a year to operate the airport including snow clearing, general maintenance and electric power for runway lights for night flying. The lighting equipment is costly since it is not integrated with NAV Flight Service Station to allow pilots to remotely activate runway lights through their radio switch. “We get a grant, I think it is $700 a year to help cover costs, but it hardly covers power for the lights,� said Poggemiller. “We clear the runway ourselves. We just use the town grader. Every time it snows – there’s an inch or so of snow we plow it.� Poggemiller also noted with the new Kerrobert Integrated Health Care Centre set to open soon, having a paved year round runway would make it safer for air ambulance planes to land. Kerrobert’s turf runways are 2,550 ft. and 1,600 ft. in length compared to the one 3,000 ft. long paved runway at Luseland just 30 kilometres west. “I’ve been in a

plane both out of here and Luseland. It’s a rougher landing than coming into Luseland,� said Poggemiller who flew in a single engine Cessna both times. As the airport operator, the town is required to notify NAV Canada if the ground is too soft for example, for safe landings. NAV Canada issues a telecommunication notice to airmen or a NOTAM to alert pilots of any change in any aeronautical facility, service, procedure or hazard. So far, there hasn’t been an issue with birds flying in and out of the Wildlife Federation Reservoir Enhance-

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Missed the chance to pave runway in the 1980s Éş Page A11 He also said when it comes to wind, “It’s no windier here than it is anywhere else in Saskatchewan.â€? The airport is identified to pilots as CJP2, a code name by the International Civil Aviation Organization and located at latitude 51° 55’ 37â€? N and longitude 109° 07’ 46â€? W. Upon arrival, there

isn’t not much for anyone to see on the tarmac other than a couple of old hangars and a wind sock. The airport is a bare bones operation with no phone, no parking and no fuel onsite. Passengers or pilots looking for a ride into town can contact the town office for information. Poggemiller can’t

recall hearing about any celebrities flying into Kerrobert over the years. “We’ve had MPs fly in for different functions. I think the premier years ago – I can’t remember who he was – flew in here,� he said. Poggemiller thinks the airport was started years ago by the son of the man who built the bricks and mortar structure that houses his

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Kep Industries business in the downtown core. “He did a lot of flying. That would be the late 1930s or early 40s,� he said. Poggemiller recalls Kerrobert missing an opportunity to participate in a federal rural airport paving program sometime in the 80s when former local MP Bill McKnight was a cabinet minister. “The town council at the time didn’t think it was necessary to do so. That grant money that was available went to Luseland and Macklin,� he said. “I honestly don’t know what their thinking was or why they would have refused it. Even if they had of paved a portion of it – it was cheap to what it would cost to do it all yourself.� Poggemiller added that “in the grand scope of things� having a paved airport today wouldn’t be a major economic generator for the town.

<ÄžĆŒĆŒĹ˝Ä?ÄžĆŒĆš ĹľÄ‚Ç‡Ĺ˝ĆŒ ĆŒĹšÄ‚ĆŒÄš WĹ˝Ĺ?Ĺ?ĞžĹ?ĹŻĹŻÄžĆŒ Ć?ĹšĹ˝Ç Ć? Žč ĹšĹ?Ć? fun side and makes like a plane touching down for Ä‚ Ć?Ĺ˝ĹŒ ůĂŜĚĹ?ĹśĹ? ŽŜ ƚŚĞ ĆšĆľĆŒĨ ĆŒĆľĹśÇ Ä‚Ç‡ ŽĨ ƚŚĞ <ÄžĆŒĆŒĹ˝Ä?ÄžĆŒĆš airport. “It would help, but it wouldn’t be a priority,â€? he said. “Kindersley is a far large centre. They have a mail run into there. A lot of heavier planes fly into there,â€? he said. Still, he went on to joke that he is kicking himself about the lost opportunity that former town council had to pave the runway as air traffic picks up in the region. â€?We hear lots of planes buzz over, and

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I have a hunch it’s to do with the oilfields – planes checking the pipelines and so on,� he said. Asked about seismic flights Poggemiller said, “I think they fly out of Luseland. As for crop dusters, Poggemiller said, “They’ve flown in out of here and they still do when they come and spray in the area. “They’ve all kind of wandered to the paved strips now.�

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Unity Flying Club operates airport Unity – If you are flying to the Unity Airport, bring a box of cookies with you into the airport terminal that is always open. Members of the Unity Flying Club that operate the airport meet there in the morning for coffee, conversation and a snack. That’s where Maynard Slater, the secretary-treasurer met with Pipeline News to generate a story about oil and gas industry uses of the airport and how the club operates it for the town. “Airports are very important today. Time and distance are the drivers for industry,â€? said Slater. “If you can save time because of long distances, they’ll use it.â€? Oil company charters, pipeline control work, seismic, air ambulance, search and rescue and flight training are leading uses of the Unity Airport. “In the oil business, the main uses will be the charters,â€? said Slater who knows a plane has come in from Calgary by 7 a.m. if he finds Tim Hortons’ Unity Flying club secretary treasurer, Maynard Slater points to a photo display of planes ĂŜĚ ĆľĆ?ÄžĆŒĆ? ŽĨ ƚŚĞ hĹśĹ?ƚLJ Ĺ?ĆŒĆ‰Ĺ˝ĆŒĆš Ɖƾƚ ƚŽĹ?ÄžĆšĹšÄžĆŒ Ĺ?Ĺś ƚŚĞ ĆšÄžĆŒĹľĹ?ŜĂů ĨŽĆŒ Ä‚Ĺś Ä‚Ĺ?ĆŒĆ‰Ĺ˝ĆŒĆš Ä‚Ć‰Ć‰ĆŒÄžÄ?Ĺ?Ä‚Ć&#x;ŽŜ ĚĂLJ ĹŻÄ‚Ć?Ćš Ć?ƾžžÄžĆŒÍ˜ dŚĞ ƉĂǀĞĚ ĆŒĆľĹśÇ Ä‚Ç‡ Ĺ?Ć? ĎŻÍ•ϹϏϏ ĹŒÍ˜ Ä?LJ ϳϹ ĹŒÍ˜ Ç Ĺ?ƚŚ Ä‚ Ä?ĆŒĹ˝Ć?Ć? Ć?ĆšĆŒĹ?Ć‰Í˜ WŚŽƚŽĆ? Ä?LJ 'ÄžŽč >ĞĞ

refuse in the terminal. “They are supposed to sign the register, but few of them do,� he said. “The air ambulance comes here and that’s one of the prime reasons for having an airport.� Unity’s economic development coordinator, Carey Baker said in an e-mail that the use of the facility by emergency responders is a key role of the Unity Airport. It helps to ensure “the safety and security of those who are employed in the energy industry in and around Unity,� he commented. The Unity Airport also gets a lot of winter use from seismographic companies that fly in with helicopters. “They did about 100 square miles southwest of here last year,� said Slater, who noted seismic flights are usually done at this time of the winter. “Usually, while they are here they ask for a hangar that’s heated. They come in late in the evening. They take the rotors off the tops. “They can work on them overnight and they are nice and warm in the morning.� X Page A15

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707,305, 5,>: 4HYJO from Edmonton. They flew in all the time, did their installation work while it was being built, and then back out again,� he said. “If we didn’t have

the airport it wouldn’t have happened. Time and distance. That’s what makes the airport important.� Slater also gave the example of David

Werklund who founded CCS, now owned by Tervita, when the company built an oilfield waste disposal site in Unity’s salt caverns. X Page A17

DÄ‚Ç‡ĹśÄ‚ĆŒÄš ^ĹŻÄ‚ĆšÄžĆŒ ĆŒÄžÄ?ĞŜƚůLJ Ć?ŽůÄš ƚŚĹ?Ć? ÄžĆ?Ć?ŜĂ ϭϳώ Ć‰Ä‚ĆŒĹŹÄžÄš Ĺ?Ĺś Ä‚ ŚĂŜĹ?Ä‚ĆŒ Ç Ĺ?ƚŚ ĹšĹ?Ć? sĂŜ͛Ć? ZsͲϾ ĹŹĹ?Ćš Ć‰ĹŻÄ‚ĹśÄžÍ˜ ^ĹŻÄ‚ĆšÄžĆŒ Ĺ?Ć? ƚŚĞ Ć?ÄžÄ?ĆŒÄžĆšÄ‚ĆŒÇ‡ ĆšĆŒÄžÄ‚Ć?ĆľĆŒÄžĆŒ ŽĨ ƚŚĞ hĹśĹ?ƚLJ &ůLJĹ?ĹśĹ? ĹŻĆľÄ?͘

W Page A14 Slater fielded several calls that morning from a British Columbia helicopter company conducting seismic near Luseland looking for a heated hangar. The hangar charge in Unity is usually a request for a donation versus city airport fees to open and the close the doors. The Unity Flying Club doesn’t even charge a fuel call-out fee in keeping with the hospitable nature of the nonprofit organization and its 40 volunteer members. “The flying club spends about $5,000 a year and contributes about $7,500 in volunteer labour,� said Slater. “We run the grader to clear the snow and do the grass cutting.� The club leases airport hangar land from the town for about $10,000 annually. The town puts about $5,000 of that into a capital reserve fund for airport improvements. Last year, the club extended the main paved runway by 500 ft. to 3,500 ft. to accommodate the heavier King Air charters and air ambulances. “When you get 15,000 lbs. roaring down the runway, the insurance companies say you should have 3500 ft., so we extended the runway,� said Slater. The club replaced all of the 30 runway lights with brighter LEDs last summer for just $180 by sourcing the lights from China. Their grader fi-

nanced by the town effectively costs only $100 through the sale of an old one for $2,900 and the purchase of a used one for $3,000 on a provincial asset sale. “The town owns it. We got it from the town for $1, and when we get rid of it we have to give it back to the town, and we get our dollar back,� explained Slater. The airport gets $2,200 a year from the province that Slater says pays for the power bill for runway lighting. Funding assistance for the airport extension was provided by the Community Airport Partnership program on a matching dollar basis. “We could use more money. There are lots of things we’d like to improve. The apron needs to be resurfaced but that’s expensive,� said Slater. “We do generate revenue through the sale of fuel.� Membership dues are just $20 a year. Robert Smith, the club president dropped by the terminal to help make a point that the Unity Airport is an economic generator. “We’ve got lots of guys – pipeline inspections – they fly in here and usually they stay at hotels that we have,� said Smith. “During the summer we have a flying club courtesy car. People fly in and they can use the car free of charge for driving around the area.� From his economic development perspective, Baker said Unity’s airport is critical.

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“The facility serves the agricultural community, is a stopping point for travelers and plays a vital role in the exploration and development of our oil and gas sector,� he states in an e-mail. He went on to write that it is important to “our pipeline infrastructure, and in the efficiency of the management structure of surrounding oil and gas companies.� Slater says it’s hard to put a dollar value on the economic spinoff, but he used the example of flying in all the computerized controls for the construction of the North West Terminal in Unity. “Everything was installed by a company

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$LUSRUW LV LPSRUWDQW IRU TXLFN YLVLWV W Page A15 Slater recalled Werklund saying, “I will not put up a plant that I can’t get to by air because I’m not going to sit in a car to drive all day to a plant for a one hour meeting and then turn around and take another day to go back to Calgary.� “Therefore, Dave used to fly in all the time when he was setting up the plant,� said Slater. Despite the current high level of oil and gas activity in the Unity area, Slater says the airport is not being used as much for oil business right now as it has at times in past years. “When Cenovus started building Christina Lake (SAGD) they took crews out of Unity to get the project started,� he said noting those flights were weekly. The Unity Flying Club is among the first to know when an oil company or its assets have changed hands in the area by incoming charter flights from Calgary. “They’ll come here and jump in their trucks and drive all over the place. This is for the wells that are out in the field,� explained Slater. When Smith takes his Piper Warrior plane for a ride, he sees a lot of oilfield activity in the area taking place, but the aerial view doesn’t surprise him. “No, not really because I am in the industry. I know what they’re doing. You go up flying and you see all these wells all over. From the ground, I see lots of them too.� Smith drives a truck for Tierra Trucking in Unity hauling oil for Gibson Energy from Lloydminster and Vermilion and from Macklin to Hardisty. Years ago Slater worked for a company called Western Geophysical conducting ground seismic oil and gas surveys near Cudworth, Sask. The 82 year-old who was born and raised on a farm near Kerrobert spent 27 years with the Canadian Air Force starting in a Lancaster as a radar equipment operator.

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He got his pilot’s licence in 1985 and pilots his own Van’s RV-9A kit plane to visit his kids in Edmonton and Winnipeg. His plane is one of 31 private planes stored in 14 hangars or parked outdoors by Unity Flying Club members.

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6L[ PXQLFLSDOLWLHV VKDUH .LQGHUVOH\ DLUSRUW FRVWV „ By Geoff Lee Kindersley – Like most airports, the Kindersley Regional Airport is out of sight to most area residents, but it’s rarely out of mind to those who operate and

use it. The 3,500-foot paved runway owned by Kindersley accommodates air ambulance, STARS helicopters and charter airline services focused on serving the oil and gas and agricul-

tural industries in the region. Five surrounding rural municipalities and the town of Kindersley each contribute about $15,000 a year in cost sharing expenses to keep the airport open 24/7.

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“A lot of (communities) Kindersley’s size are having trouble operating airports and wondering what to do because they are a financial burden,� said airport manager Dave Hill. “This partnership works really good for Kindersley. It’s essential to growth.� The RMs value the crop spraying business based at the airport along with air ambulance services for residents and oil and gas workers. “The biggest reason we got involved was to

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look after health care,� said Reeve Darwin Whitfield from the RM of Oakdale. Whitfield sits on the airport board. Several oil and gas companies in the region funded the recent construction of an emergency pad for STARS helicopters with a refueling depot. “Air ambulance is coming in and now STARS. We wanted to make sure we had that capability. The airport works for the whole region,� said Whitfield. Currently, the airport handles about five charter flights a week from Calgary on oil business with more flights expected from new oil and gas developments underway in the area. There are lots of privately-owned planes flying in and out of the airport for business as well. Calgary-based Torq Transloading Inc. plans to construct a $100 million crude rail loading terminal near Kerrobert a few minute’s drive from the airport on Highway 21. “I’m not sure where they will stand as far as using the airport. I would assume they’re going to need it in some capacity,� said Whitfield. “For the five RMs involved, it’s servicing their tax users. It’s not just Torq. There are other projects that are going up within the area and they all use it to some advantage I would think.� The airport is also used for some seasonal oilfield seismic and pipeline survey flights by helicopters. About 95 per cent of the charters that fly in are King Airs.

Hill said there is no question the airport is an economic generator because of the oil and gas activity in the Viking light oil play in the area. “The airport is a boom to those guys coming out here all the time,� he said. “There are a lot of charter flights that come in and out of here. It can be 24 hours a day.� The airport installed a new pilot-activated runway lighting system in 2013 with a $5,000 provincial Community Airport Partnership (CAP) program grant. “We just installed a new lighting system to save money. Now you can come in and click your radio five times, and it’s on for 20 minutes,� said Hill. “We are upgrading our runway lights right now. We are going to use LEDs.� In 2011, the airport completed $953,000 in upgrades to repave the runway and improve the tarmac with matching funds from the federal/provincial Building Canada infrastructure program. Hill wishes the airport were 500 feet longer to accommodate the next level up of small jets. “It’s something to work on,� he said. A longer airport would mean more snow to clear and grass to cut, but as the manager, Hill thrives on doing those jobs himself at less cost than previous contracts. “We bought a three-quarter ton Chevy and mounted a blade on it and a spreader for it. All of the plowing this year was with the truck. It saved a lot of money doing it,� said Hill. X Page A19

707,305, 5,>: 4HYJO W Page A18 “We got that spreader too and the spreader is just awesome. We use urea on an icy runway because it doesn’t harm the planes.� The Regina airport donated a 1954 Sicard runway sweeper that makes quick work of any windswept runway snow. “It’s an amazing machine. It will take it right down to the pavement,� said Hill. “Last year was the first year we used it. When you are in charge of the runway that thing is a lifesaver.� Hill was hired on a contract basis and logs a lot of hours running his Hill Acme Machine Ltd. business that he took over from his dad in 1994. “It’s a machine shop and a welding shop. I retail bearings, drivelines and hydraulics. It’s oil and gas and farmed based,� he said. His dad started the business in 1971 the same year Hill finished high school and started flying lessons. Whenever he can, he pilots a Piper Cub from the terminal owned by the Kindersley Flying Club. It also owns a few of the 11 hangars onsite. The fact Hill has “been hanging out� as he puts it at the airport for over 40 years helps to explain why he is the right person to manage it. “I’m on call 24/7. It’s my job to clean the runway. My criterion is bare and dry all the time. That’s what I go for,� he said with the new equipment. “If there’s a stormy morning, I’m out here and I’ve got the runway plowed and back to work by 8 a.m.� Hill keeps his ear to the ground and realizes his plowing time might be stretched as oil and gas activity and airport traffic continue to expand in the region. “I get a lot of drilling rig guys coming in the shop. They’ve got long-range plans, these guys. They’re talking five to 10 years,� he said. He noted when you fly over the area you see a lot of new activity, but that is even evident on his daily drive to the airport. “There’s been in the last two weeks, six wells drilled in this area right around the airport,� he said. “There was three mornings in a row it was lit up like a Roman candle. It’s 2,500 feet off the end of the runway to the south. “They are fracking it right now.�

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„ Story and photos by Geoff Lee Lloydminster – Job seeking was easy manual work for those who attended the

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Lloydminster Job Fair at the Civic Centre on Feb. 13 with more than 30 employers on hand accepting resumes. More than 300 people were expected to attend the five hour afternoon event including Grades 11 and 12 high school students from Lloydminster looking for summer work or part-time jobs. Dorothy Carson executive director of the Lloydminster Construction Association spearheading the event, said, “We know that one of our number one priorities for our members right now is a shortage of workers in the workforce, so we try to plan events to provide organizations with the opportunities to bring employers and jobseekers together.� Badger Daylighting, CWC Well Services, Savanna Energy Services Corp., Guardian Oilfield Service, Tartan LML Industrial Contractors and Quinn Contracting Ltd. were among oil and gas related companies hiring. “It seems like no matter which industry your company is in, they are finding there is a shortage of work. Everyone is on the search for a good employee,� said Carson. The event included workshops on effective communication skills for employers and job seekers by Kristen Cumming from Cantos Performance Management based in Alberta. Cumming also planned to present a three-hour customer service workshop on Feb. 14 to help companies and their teams build their customer service presence and improve sales. “I help employers recruit, retain and develop powerful workers,� said Cumming, who describes the labour shortage in the region as being acute. “It’s not just a labour shortage. It’s also a skill shortage,� she said. “When you start to think about the problems employers have – it’s both

qualitative and quantitative just in the numbers of bodies generally, as well as the specific skillsets amongst the potential candidates they’ve got. “It’s tough, it’s really tough.� Cumming spent time to prep employers who were exhibiting at the job fair on how to use the opportunity for really effective recruitment. “I really advocate employers don’t focus on the resume to the exclusion of the person,� she said. “I like them to talk with the people, ask open ended questions, really slow down and listen and be fully present for that conversation because real gems don’t always carry a brilliant resume. “People don’t need to be good at work searching. You want them to be good at work. “So sometimes that doesn’t come in a package that’s a brilliant work searcher. That doesn’t mean they are not a fantastic hire.� Cumming also held a session with job seekers and Lakeland College students taking the Introduction to Heavy Oil and Gas program to help them to introduce themselves to employers in a meaningful way. “Effective employment is finding alignment between both the employee and the employer so both have got to be kind of negotiating in that process,� said Cumming. The job fair was presented by the Lloydminster Construction Association, the city of Lloydminster, the Lloydminster Chamber of Commerce, the Office of the Treaty Commissioner, Lloydminster Economic Development and the Alberta government. This was the third Lloydminster job fair and Carson said the timing of this year’s event was as good as any in a tight labour market.

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“Definitely in the Lloydminster area, every time is a good time and there seems to be employers that are out there that are always looking for additional employees,� she said.

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„ By Geoff Lee Unity – Orion’s Forge Ltd., a fabrication shop near Unity has built the proverbial better mousetrap with its new and improved mobile pipe handling trailer for service rigs. The trailer is the brainchild of company owner Paul Marshall, who lives and operates from his 320 acre farm with his wife Yvonne. From there they serve the oilfield, agricultural and walk-in customers. “We’ve taken about a year to develop a pipe trailer,� said Marshall, who had the first one ready for sale in his yard. “What I did was, I repaired quite a few pipe trailers in different makes and designs and styles and looked at trying to build a better mousetrap. “The key to this pipe trailer is you can lift and lower the wings of the pipe trailer without affecting the level of the bed. “That enables you to bring pipe in and put it out without as much effort.� The wings that hold the pipe can be raised or lowered easily with a set of two-speed 50,000 lb. transport jacks. The arms feature ball and socket joints enabling each one to move up or down independently based on the terrain. A lift arm on the bed that can be operated by an air lift or a hydraulic lift has the ability to lift and pull the pipe back about three feet towards the roller on the back of the trailer. “It takes a lot of the lift and the dragging out of bringing the pipe back to the rig,� said Marshall. “Obviously, when you do that it reduces the possibility of injury when men are working, especially out in the cold when it’s easy to pull muscles.� It was -25 C the day of the demo and tour of Marshall’s shop which helped to make the point about the pipe handling trailer being safer to work with in cold weather. The deck of the bed is made of raised expanded metal to prevent slipping in all weather conditions. X Page A23

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“It gives you probably the best grip you can find out there for traction,� said Marshall. “You don’t get snow or ice built up on it.� He said competing units have either steel or wooden floors that can turn into ‘skating rinks’ in the winter. “This one has proved to clean and ice free,� he said noting that is also comes with safety railings even though it doesn’t have to with its 41.5 inch height. Marshall’s next challenge is to generate sales orders and then decide if he will build more units himself or outsource that task to a trailer manufacturing company. Either way, Marshall is confident his pipe trailer will catch on with service rig operators as the better mousetrap it is designed to be. “I hope so. Only time will tell whether the industry figures that. That’s just how it is. We’re going to try,� he said. Marshall is never short of things to do as he and his right hand man Jim Orr are multi-taskers, in keeping with Orion’s history. “I had my own contracting business for a long time and I repaired and built equipment for that,� said Marshall. “The things that we do have actually been

learned through necessity. “We run a fab shop. We also have the ability to sandblast and paint. One of the things we like to do is design-build projects – sometimes oilfield or ag – quite often one-offs,� said Marshall. A case in point is the second of two custommade extendable truck mirrors being assembled in the shop for hauling extra wide loads.

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“We’ve got a customer – he’s got two of these mirrors which extend out 24 feet. They are electrically operated so you can operate them from within the cab,� explained Marshall. “The mirrors are steerable so you can extend the mirrors and you can set the mirrors electronically from inside the cab.� The mirrors can extend out six feet aside from a special weatherproof housing on the unit. The mirrors are also heated and come with flashing beacons which make them compliant with wide load safety regulations of several provinces. The mirrors are being built for a company moving houses from southern Saskatchewan and Manitoba into the United States and north to the Yellowknife area. “They like the electrical application because when you are moving there are times, for instance, if there are obstructions, you want to bring those mirrors back in,� said Marshall. “The switchboard is all in the cab.� X Page A24

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+XOD KLWFK VZD\V IUHHO\ W Page A23 Marshall has also developed a unique pivoting fifth wheel hitch for a gooseneck trailer including the one he built to haul the mobile pipe handling trailer. It’s being dubbed as a “hula hitch� for its ability to sway freely in all directions when the trailer is in motion. “When we designed the pipe trailer we realized we couldn’t really safely use ball hitches because they don’t really don’t carry enough rating,� said Marshall. “The only problem with a gooseneck and a fifth wheel hitch on it is

that when you get into rough terrain there are no side to side oscillations and that does cause problems.� The inspiration for the hula hitch came from a hotshot operator with a picker who complained to Marshall about his frequently broken kingpins “We realized that we had to do something about that, so we basically designed a pivoting 5th wheel hitch,� said Marshall. “We put in on the pipe trailer and for that customer who has broken his kingpin off his fourth or fifth time.� Marshall has con-

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nected with a potential distributor for the hitch. “My next step is getting engineering papers on it which is not to difficult to do. I’ve just got to get it stamped,� he said. Bar Engineering in Lloydminster has already stamped the pipe handling trailer to bring it to market. Orion’s also makes some decorative steel signs for a local sign maker and tends to daily walk-in business from time-rushed customers. “I work for a couple of the service rig companies in Unity,� he said. “Typically, there’s a breakdown during the day, the part gets drop off a 5 p.m. and they want it at 5 in the morning to go to work. We do the very best we can to make sure that happens. “A lot of our work is local and obviously, the ag we do, especially in harvest time is time

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related – it’s got to be in and out to get back to work.� Marshall would like to expand his business with more employees, but for now he’s focused on a physical expansion. The plan is to extend the shop by another 30 ft. at both ends and add another 140 ft. down one side in the coming months as the

workload increases. It will give Hamilton, the shop cat more room to roam and make way for new equipment and hopefully, new employees in a competitive market. “Like all small businesses, especially in an area where the oilfield is, the huge struggle is manpower,� said Marshall.

“It’s getting somebody who’s capable who can work without supervision and keeping them. “It’s not my problem, it’s everybody’s problem. It doesn’t matter if you are doing what I’m doing or running any particular business as a small businessman it’s extremely tough to expand.�

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/OR\G FXUOHUV WR FKDVH 0F$OOLVWHU 'ULOOLQJ Lloydminster – In a far away and windswept land called Lloydminster, a life and death battle of curling will take place involving the throwing of rocks inside the Lloydminster Curling Club rink. This over the top hyperbole for the 47th annual Lloydminster Heavy Crude Open Bonspiel to be held from March 12 to 16 is inspired by a similarly worded description of the musical Aladdin coming to town on March 9. That one reads, “In a far away and exotic land, under the hot desert sun, a young boy’s life is about to change forever‌â€? Expect the 2014 bonspiel to have its share of dramatic moments, too, knowing every team will be out to dethrone last year’s A-Event champs from McAllister Drilling Inc. One of those headhunting teams will be GLM Oilfield Construction that lost to McAllister. Every other event champ will also have a target on the back in 2014. This year’s entry fee is just $440 per rink including four banquet tickets for curlers. The banquet and Oilman of the Year Award to be held at the Stockade Convention Centre on March 14 will mark the debut of Kurt Price as master of ceremonies. Price, from Lloyd 95.9 FM radio, takes over the microphone from long serving MC Don Tarasuik who shocked last year’s banquet by announcing he was stepping down. “He decided it would be nicer to spend time down in Arizona than it would to spend an evening

Stanyer expects to fill the rink with 72 teams, the same as last year when entries also came in late. “That’s what I’m hoping for. It just like the last few years, it’s been lagging a little bit,â€? he said. “You usually have to do a little bit of phone calling after the entry close.â€? Stanyer said the rescheduling of the Maidstone from early March to late January will have no impact on drawing more teams to Lloyd as it does for organizers of the Maidstone. “I never really thought of it to tell you truth because it never affected us any. We have our sponsors and our teams and they have theirs,â€? he said. “Sometimes you get teams that move from one event to another. When they moved theirs, they moved it on the same day as Wainwright’s so now they are competing from there too.â€? Wainwright shifted their event from November to the same time slot a few years ago. “It’s pretty tough to do especially with smaller tŚĂƚ Ç Ĺ?ĹŻĹŻ ƚŚĞLJ Ä?Äž Ç ÄžÄ‚ĆŒĹ?ĹśĹ? ƚŚĹ?Ć? Ç‡ÄžÄ‚ĆŒÍ? /Ĺś ĎŽĎŹĎ­ĎŻÍ• ĆŒÄžĆŠ 'ĆŒÄ‚Ͳ bonspiels like that,â€? said Stanyer. ŚĂž ĂŜĚ ĹšĹ?Ć? DĹ?ŏĞ͛Ć? KĹ?ůĎĞůĚ ^ÄžĆŒÇ€Ĺ?Ä?ÄžĆ? Ć?ƉŽŜĆ?Ĺ˝ĆŒÄžÄš ƚĞĂž In Lloyd, the Aladdin musical is the closest Ä?ĂžĞ ƚŽ ƚŚĞ Ä?ĆľĆŒĹŻĹ?ĹśĹ? ĆŒĹ?Ŝŏ ŽƾĆžĹ?ƊĞĚ Ĺ?Ĺś Ď´ĎŹĆ? Ç€Ĺ?ŜƚĂĹ?Äž Ä?ĆľĆŒĹŻĹ?ĹśĹ? thing to a scheduling conflict. Ć?Ç ÄžÄ‚ĆšÄžĆŒĆ? ĂŜĚ Ç ĹšĹ?ƚĞ Ä?ĂƉĆ?͘ “That’s on the committee. You have to watch that kind of thing and plan around it,â€? said Stanyer with us,â€? joked John Stanyer, event chair. about bonspiel scheduling. Stanyer will also be the official scorekeeper for the second year in row. “I really don’t have much choice. There’s nobody else to do it,â€? he said with a laugh. When contacted on Feb. 13, only 22 teams had registered before the deadline on Feb. 21 but

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Lloydminster – If you prefer eating to long winded speeches, load up your plate during the mixed banquet and Oilman of the Year Award at the Stockade Convention Centre on March 14. The evening celebration will be one of the highlights of the 47th annual Lloydminster Heavy Crude Open Bonspiel – best served on an empty stomach. This year’s Oilman of the Year, Vic Jezowski, hopes whoever introduces him reads his entire 46-year career

resume in five minutes or less so banquet goers can go back for seconds. “Oh, I think for 46 years that was probably enough of it,� is the short version of Jezowski’s life and times in the Lloydminster oilpatch in his very own words. “It’s going to be very short,� he said about his own time at the podium thanking everyone. “I am ‘not no’ speaker,� he joked. His wife Jean will be at his side to lead the applause with help from former coworkers, friends and extended

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family members in the crowd. The couple has two adult daughters, four grandchildren and one great grandson. One of Jezowski’s brothers Frank a bonspiel teammate in 2013 was Oilman of the Year in 2009. In truth, it will take longer than five minutes to cover Jezowski’s nearly five decades of oilfield work and career highlights that began and ended with a Husky Energy link. He got his start contracting in 1966

with Husky operating a battery and oil and gas wells in the McLaren field after two years of training to be a motor vehicle mechanic. He recalls that field being on a steam flood at the time of his hire. To make a long story short, work came to a halt when oil dipped to just 93 cents a barrel leading Jezowski to seek summer work in road construction. He has ridden the rollercoaster of booms and busts more times that he can remember with construction or snow plowing as a backup job. Things are a little different today than the

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’60s and ’70s as Jezowski will tell you more about at the banquet. Some of the big changes that come to Jezowski’s mind are safety and paperwork. “It’s the safety today – everything is so much paper work now it’s unreal,� he said. He swears paperwork has increased tenfold despite the use of computers. “Safety is a big concern these days and is a major part of the paperwork,� he said in to his draft speech previewed by Pipeline News. Jezowski will reveal that he was never a friend of cold nights or long nights in the field after retiring two years ago as an employee of L & L Oilfield helping to operate the gas system for Husky. “Getting called at night to check a compressor at midnight then not get home until 5 o’clock the next day didn’t impress me much at the last,� he said with a smile. He noted L & L originally hired him for three months and the job lasted seven years. “I guess I work slow,� he joked. “I was looking after compressors and reviv-

ing gas wells there were depleted or wouldn’t produce any more. “I would bring them back to life without using a rig. We would just use soaps and chemicals.â€? His previous work at GChem for five or six years conducting soil and gas migration testing also deserves a brief mention for readers. “I covered all of Alberta and Saskatchewan and we did samples on wells that were shut-in and we’d find out where the gas was migrating from,â€? said Jezowski. “It was interesting, but I can’t sleep in motels and that’s where I was all the time,â€? he said with a grin as his reason for moving on. While at GChem he designed and built equipment used for cleaning and sanitizing the test bottles. His creative side led him to build a sample agitator for the company at a fraction of the cost of purchasing one. During his career Jezowski has done everything from being a foreman for leasing crews and cleaning up leases to helping to build Highway 16 as a two lane highway. ɸ Page A27

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707,305, 5,>: 4HYJO W Page A26 All that experience likely led to a phone call from bonspiel chairman John Stanyer inviting him to be this year’s Oilman of the Year. “I was quite excited actually,� said Jezowski before answering the next question about why he thinks he was picked. “I don’t know. I’ve just been around so long and 46 years of it I think. I know the executive. I probably know them all,� he said. Jezowski will also curl in the bonspiel from March 12 to 16 at the Lloydminster Curling Club. He has curled in all but three or four of the past Lloydminster bonspiels and came second in the 2004 championship flight playing with GLM. He can’t wait for March to roll around after warming up at the Maidstone bonspiel in early Feb.

“It’s the fun and the sportsmanship and it’s great to be with everyone you worked with for so many years, “ he said that brings him back. Vic and Jean also curl together twice a week in the local mixed senior’s league. Jezowski also played hockey, broomball and played many games and positions with the Marshall men’s fastball team in his younger days. He was born and raised on a farm at Fertile, Sask. and eventually purchased the three quarter sections of land that he and Jean live on now. “I help the neighbours seed and take their crop off – the both of us actually do,� said Jezowski. “Years ago I rented it out because working in the oilfield and farming didn’t go together – it’s too much.� As a witness, Jean can sum up her husband’s

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oilfield career in two words: long hours. “That’s exactly it. You never know when they are going to be coming from work because they never know how long they are going to get stuck out there,� she said. Asked if her microwave was her best friend in those early years she replied, “I guess back then we didn’t have a microwave.� Remember, back in the day, Highway 16 was just one lane. Oil was just 93 cents a barrel. Time flies and Jezowski promises to bring everyone up to speed – quickly and over a good meal with others as the 2014 Oilman of the Year. The Jezowskis will be introduced as a couple that live on a farm 19 kilometres east of Lloydminster on Highway 303 and have two adult daughters, four grandchildren and one great grandson.

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*UDQW DLGV <HOORZKHDG DLUVKHG ]RQH „ By Geoff Lee Saskatoon – The land of living skies in Saskatchewan could also become known as the land of air quality monitoring. New air quality monitors have been set up near Kindersley, Unity, Meadow Lake and Maidstone to test the air from oil and gas operations and other economic activity. The monitors also called air pointers will add to a network of passive monitors in a new Western Yellowhead Air Management Zone – the second of six planned for the province.

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“What we do here is test the regional air quality and be the monitor not the regulator,� said Yellowhead zone executive Terry Gibson in Saskatoon. The Yellowhead zone covers an area from east of Saskatoon to Lloydminster and from north of Meadow Lake to south of Rosetown and provides real-time air quality data provided by the monitors. All of the air pointers provide third party

air quality data to zone members including oil and gas companies. Husky Energy, Canadian Natural Resources, BlackPearl Resources, Gear Energy and Penn West Petroleum are among the lengthy list of Yellowhead zone members from the oil and gas industry. Membership dues are based on the environmental footprint of each oil and gas company.

“We are trying to show the world that we have good air quality in Saskatchewan – we’ve

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got excellent air quality in Saskatchewan,� said Gibson. Member companies, organizations and the general public can view real-time the air quality data at the wyamz.ca website. The website includes an air quality index and a 24 hour summary of the air quality parameters being measured by the air pointers. Data also goes to the Ministry of Environment and Ministry of Economy. “Having a third party like an air management zone, which has a wide variety of members ranging from industry to academia to environmental groups, collect the data completely removes any bias in the data collection,� said the Ministry of Environment in an e-mail statement. “Also, the information gathered is accessible for informed decision-making, whether it be by indus-

try for development or expansion or by government for management strategies.� “It’s verifiable clean data from a third party,� added Gibson. A third party laboratory provides quality control and quality assurance and maintains and calibrates the air pointers at regular intervals. The air quality pointers are mounted above ground and draw in air constantly for measurement. Local farmers are hired to change the filters every three weeks. The air pointers contain a full meteorology suite capable of measuring wind speed and direction, relative humidity and temperature etc. “It’s full of computer stuff. It’s a very complicated machine. They have received EU designation and U.S. EPA (environmental protection agency) designation,� said Gibson. X Page A29

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707,305, 5,>: 4HYJO W Page A28 The air pointers are programmed to detect a variety of parameters such as hydrogen sulphide (H2S) and sulphur dioxide (SO2) in the Maidstone and Kindersley areas. “Mostly in the oilfield you are measuring H2S and SO2,â€? said Gibson. In Unity and Meadow Lake where there is a nearby pulp mill, the monitors measure such things as oxides of nitrogen, ground level ozone (O3) and fine particulate matter or dust. “The beauty of these machines is we’ll look at six months to a year – and if you want to measure something else you just change the module,â€? explained Gibson. Gibson said Alberta Environment is thinking of “doing somethingâ€? to monitor air quality in Lloydminster in the future. Husky has two air quality monitors just outside of Lloydminster and they will be providing the zone with additional data. Gibson said there haven’t been air quality exceedances in the Yellowhead zone yet, but there have been in other parts of the province in the past. “It happens. It’s usually because something went wrong,â€? he said. When exceedances occur Gibson notifies the Ministry of Environment and the Ministry of the Economy so they can look into it. “They are the regulators,â€? he said. The Ministry of Environment takes all the information available, the H2S or SO2 measurements, the meteorological and chronological information (wind speed, temperature, times of occurrence), and can often do back trajectory modeling that points to a fairly local area. â€œFrom this modeling the ministry can see

which emitters could potentially have an ‘upset’ condition,â€? said the Ministry of Environment. “We would then alert the Ministry of Economy for follow-up as they are the lead regulator on upstream oil and gas activities.â€? That includes Directive S-10 regulations on flaring and venting. The Ministry of the Economy has the authority to suspend (stop work) operation of any licensed oil and gas well or facility emitting H2S concentrations in excess of regulated limit. If any H2S emissions have a potential to endanger public safety, then Ministry of the Economy can and will compel the company to enact its emergency response plan. The Yellowhead zone received $200,000 in matching federal funding from Western Economic Diversification Canada to purchase the four air pointers.

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Provincial environment minister Ken Cheveldayoff also announced a one-time grant of $40,000 to the zone in January. “Air management zones play an important role in protecting our environment and contributing to a better quality of life,â€? said Cheveldayoff in a statement. “They bring together the public, government, industry and other organizations to monitor air quality and find solutions to keep our air clean.â€? Air management zones are non-profit organizations; membership is voluntary with industry members sharing the funding responsibilities. The province is divided into six zones with two associations currently active including the Yellowhead and the Southeast air zone. The ministry is working with stakeholders to establish a third zone encompassing the Regina, Moose Jaw and Yorkton areas.Â

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Redvers – The Redvers & District Oil Showcase will be held May 8 and 9 at the Redvers Recreation Centre. The showcase is held every second year on years opposite of the Saskatchewan Oil Show in Weyburn. It highlights many local oilfield service operations. The two-day event fills the arena with approximately 100 indoor booths and a further 50 outdoor booths. As of mid-February, they were two-thirds sold out, with about 50 left over, according to Mark Wolensky, president of the Redvers & District Oil Showcase committee. He expects all the booths will sell out. On Thursday, May 8, the banquet will feature Tim McMillan, minister responsible for Energy and Resources, as the dinner guest speaker. Prior to the big event, the committee is hosting a curling bonspiel March 14 and 15. It’s something of a unique format, with three-person teams and six-end games. This promises to result in a fast pace of play. It will be open to both genders, and up to 18 teams. The cost is $300 per team.

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Maidstone spiel beats NFL and rodents Maidstone – The finals of the 12th annual Maidstone Oilmen’s Bonspiel played out during Groundhog Day and Super Bowl Sunday with curling topping the local ratings for excitement. No one liked the prediction of six more weeks of winter by various rodents or the lopsided 43-8 NFL win by the Seattle Seahawks over the Denver Broncos, leaving the Maidstone event to cheer everyone up. The happiest man at the rink was Bert Benoit, lead and spokesperson for Diamond Energy Services, just moments after his team’s come from behind win in the A-Event final against Eagle Well Servicing. “We worked hard and I guess we were able to get to the final. We were five down after two ends,� said Benoit. “I guess it goes to show you – you should never give up. We kept throwing down there and things worked out for us.� Benoit and his Unity teammates, Garth O’Donnell, Dave O’Donnell and Shane Sigstdad got their name on a trophy and a share of the $800 top cash prize. Eagle skip Dustin Lavigne had a chance for a takeout and stick to tie, or hit and roll toward the

button for the win with his last shot, but neither option happened and the rest is history. Prior to the final he said his strategy was to “make our shots and we’ll win it all – keep ’er clean and not too much in play.� For finishing second, team Eagle takes home a $600 cash prize. With the win, Diamond Energy heads into the Unity bonspiel running from Feb. 27 to March 2 on a head of steam with plans to defend their Maidstone title next year. “We have all the reason in the world to come back. It’s a good bonspiel. The guys do a good job for us to put everything on for us, so we are glad to be here,� said Benoit. The good times were also rolling for B-Event champs from Tiger Machining Inc. that claimed $600 for edging out Spearhead Oilfield Services. Spearhead walked away with $400 in cash. Team Tiger is the foursome of Ken Smart, Gerren Findlay, Brynn Findlay and Brian Findlay. J.C. Inspections and Associates with Ed Rogoz, Paul Schwebius, Trevor Aker and Hal Coulter onboard earned $500 as C-Event champs. X Page B31

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They came. They curled. They conquered. The A-Event Diamond Energy Services team from Unity won the $800 top prizes. (l-r) Garth O’Donnell, Dave O’Donnell, Shane Sigstad and Bert Benoit.

Meet the B-Event champs from Tiger Machining. (l-r) Ken Smart, Gerren Findlay, Brynn Findlay and Brian Findlay.

We are the champions of the C-Event. That’s the chant ŽĨ ƚŚĞ :͘ ͘ /ĹśĆ?ƉĞÄ?Ć&#x;ŽŜĆ? ƚĞĂž ŽĨ ͞ůͲĆŒÍż Äš ZĹ˝Ĺ?Ĺ˝ÇŒÍ• WÄ‚ƾů ^Ä?ĹšÇ Äžbius, Trevor Aker and Hal Coulter. Ä‚ĆŒĆ?ŽŜ ĹśÄžĆŒĹ?LJ ^ÄžĆŒÇ€Ĺ?Ä?ÄžĆ? Ç Ĺ˝ĆŒĹŹĆ? Ç Ĺ?ƚŚ Ä?ĹŻĹ?ĞŜƚĆ? ĨĆŒŽž Ď­ĎŻ ĹŻĹ˝Ä?Ä‚Ć&#x; ŽŜĆ? Ä‚Ä?ĆŒĹ˝Ć?Ć? ĹŻÄ?ÄžĆŒĆšÄ‚ ĂŜĚ ^Ä‚Ć?ĹŹÄ‚ĆšÄ?ĹšÄžÇ Ä‚ĹśÍ• Ć?ÄžĆŒÇ€Ĺ?ĹśĹ? Ä‚ ĨŽŽĆšĆ‰ĆŒĹ?Ŝƚ Ä?Ĺ˝Ç€ÄžĆŒĹ?ĹśĹ? Ä?ŽƚŚ ƚŚŽĆ?Äž Ć‰ĆŒĹ˝Ç€Ĺ?ĹśÄ?ÄžĆ? ĂŜĚ Ć?ŽƾĆšĹšÇ ÄžĆ?Ćš DÄ‚ĹśĹ?ƚŽÄ?Ă͘ ‡ 6DVNDWRRQ ‡ 6ZLIW &XUUHQW ‡ /DPSPDQ ‡ (PHUDOG 3DUN ‡ 9LUGHQ ‡ $OLGD ‡ +DOEULWH ‡ :DLQZULJKW ‡ &DOJDU\ ‡ /OR\GPLQVWHU ‡ :KLWH &LW\ ‡ &DUO\OH ‡ 5HJLQD

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A lucky tam can only carry you so far. That’s what Jordi Johner found out as his Keranda Industrial Supplies team ended up on the short side of the Ͳ ǀĞŜƚ ĎŜĂů Ä‚Ĺ?Ä‚Ĺ?ĹśĆ?Ćš :͘ ͘ /ĹśĆ?ƉĞÄ?Ć&#x;ŽŜĆ? ĂŜĚ Ć?Ć?Ĺ˝Ä?Ĺ?ates Ltd.

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707,305, 5,>: 4HYJO W Page A30 They beat a game squad from Keranda Industrial Supplies Ltd. that shared $300 in cash spoils as the runner-up. It’s a fact that no one goes home empty handed at the Maidstone which is one reason why teams keep coming back year after year. “That’s really a big part of our bonspiel is making sure that everybody gets a prize,� said committee member George Bray. “Sponsors around here have been really good to us.� Bray singled out Scorpion Oilfield Services Ltd. in Lashburn for providing a 50-inch flat screen smart TV as the top draw prize just as they did last year. “They also phoned and said they couldn’t be here for the Calcutta, but go ahead and spend $1,000. You can’t beat that kind of support,� he stressed. This year $5,350 was raised in a Calcutta with 15 per cent going toward funding a new compressor, chiller unit and condenser to be installed over the summer. Ice maker Cal Donald said the equipment arrived in late October just as the curling season was about to get underway. “It’s under wraps. It came too late, so we are running the old one again this year,� he said. Asked how the ice was for the bonspiel. Donald laughed and said it’s “as good as I can make it – perfect.� Bray said the new system will be money well

spent. “Our compressor I think is 41 years old. It will cost $35,000 plus $10,000 to install,� he said. “The place we got it from only ran it for three months. Their roof caved in so they had a brand new compressor. They paid close to $65,000 for that and we got it for $35,000. We’re pretty pleased.� Curler Aaron De Jong, the owner of Signature Safety Ltd. who sponsored the program guide, is a big fan of auction Auction calcuttas to help keep local tournaments and curling clubs running. “I think it’s a great opportunity. It’s an awesome thing to do,� he said. As for the curling, his Ronera Trucking team from Lashburn lost in the B-semis to Tiger Machining, but he still loved every minute of it. “It was an awesome game. Tiger Machining they came out 5-4 in the end,� he said. “They had to draw to win. It was a perfect game. It was a beautiful game actually, and the ice was great. “The whole weekend was a great thing. We love coming down here if we can. It’s always a great bonspiel. I’ll tell you, we have a great time every year.� Another happy camper was curling club president, Garry Pauls who is pleased a decision made last year to bump up the event from March attracted 20 teams, two more than in 2013. He said the change was “just to get away from the Lloyd oilmen’s – just to break it up. Also it works good at the rink here. It’s less busy at this

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time. “It’s been good so far with the more teams this year. It seems to be a better response.� Pauls was also pleased to attract sponsorships from a wide range of oil and gas companies in the region. Keranda Industrial Supplies Ltd. sponsored the A-Event, TWB Construction Ltd., the B-Event and MRC-Midfield Supply, the C-Event. “We got a lot of support which is good from all oil and gas companies especially in Maidstone, Lloyd, Lashburn and Marshall, Turtleford and St. Walburg – even down to Cut Knife,� said Pauls, noting that’s it’s easier in these boom times. “It seems to help us out a lot. As long as there is oil, they will support us,� said Pauls who works as a real estate assessor for Saskatchewan Assessment Management Agency. Pauls curled on the Baker Hughes team, but their path to glory was blocked along the way by J.C. Inspections that proved to be unstoppable in their ascent to C-Event final. Just ask Jordi Johner who played in a losing cause in the C-Event final with Keranda Industrial Supplies. He was confident stepping onto the ice as a past B-Event winner. “We are hoping to win the C final this year,� he said, pointing to his tam for good luck before the game got underway. “This is the only time we curl – once a year. It’s a lot of fun. We’ve been here for about eight or nine years. We don’t miss it.�

&HQRYXV SODQW Ă€UH Goodwater – At about 2:00 a.m. on Feb. 11, today, a fire was detected at the plant site of Cenovus’ Weyburn operation near Goodwater. “The fire started within the treating equipment used to separate oil from water. It spread to some of the plant equipment outside the treater building. The fire has now been extinguished. There are no injuries and damage was isolated to the Cenovus plant site,â€? Cenovus spokesperson Rhona DelFrari said in a statement later that morning. The Weyburn fire department was called to help Cenovus crews extinguish the fire. A company that specializes in oilfield emergency response was also ĆšĆŒÄžÄ‚ĆšÄžĆŒ Ç Ä‚Ć? Ä‚Ćš ƚŚĞ Ä?ÄžĹśĆšĆŒÄž ŽĨ Ä‚ ÄŽĆŒÄž Ä‚Ćš ƚŚĞ ÄžŜŽÇ€ĆľĆ? ƉůĂŜƚ called to assist. “Our emergency response plan was fully activatĹśÄžÄ‚ĆŒ 'ŽŽÄšÇ Ä‚ĆšÄžĆŒ ŽŜ &ÄžÄ?͘ Ď­Ď­Í˜ WŚŽƚŽ Ä?ŽƾĆŒĆšÄžĆ?LJ ÄžŜŽÇ€ĆľĆ?

ed. We continue to conduct air monitoring and have determined the air quality is not a concern,� she said. The cause of the fire is not yet known and the extent of the damage has yet to be determined. Production at the Weyburn operation continues with other plant equipment being used. No production loss was expected as a result of the incident at the time. “We take responsibility for this incident. Cleanup will commence immediately. We will then assess what happened and take steps to prevent a similar incident from happening again. Appropriate regulators will be notified. “Thank you to the Weyburn Fire Department for assisting us,� Delfrari concluded.

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Saskatoon – Saskatoon-based Draganfly Innovations Inc. started off in the remote control model aircraft business, but now they make unmanned aerial vehicles (UAVs) that play in the big leagues. Last year the RCMP used one of their products

to find a man who had survived a single-vehicle wreck, only to nearly succumb to hypothermia. Kevin Lauscher was a long-time Saskatoon Police Service member who retired in 2005 and joined Draganfly in 2006.

“I do industrial sales and am responsible for all training,� he said on the phone from Saskatoon. The company has been around since 1998, before the explosion of drone usage in military circles that came with the Iraq and Afghanistan wars. But Lauscher said their origins didn’t come from the military side, but the hobby side. “It was a hobby company building remote control systems,� he said. “We developed the industrial side starting in 2006.� Initially, they bought and sold remote control hobby aerial aircraft, including a small blimp model equipped with a camera. Then they made the X3, a small toy quadcopter made of foam with brush motors and limited stability control. Since then they’ve gone from plastics to carbon fibre and added a small analog camera. This would lead to the X5-TI, which used an analog signal frequency. “It showed the possibilities, and was actually quite cheap,� he said. By 2005-2006 they were producing the SAVS, or stabilized aerial video system. It had a suspended camera, but its video quality was not good enough for commercial usage, Lauscher said. “We weren’t looking at the military,� he said, noting the intention was to sell to law enforcement agencies. Saskatoon Police Service picked up their first unit in 2003, an older system purchased for the tactical unit. The system was difficult to fly, and it took a lot of time to learn how to fly and stay current. This was more like radio control, or R/C flying, Lauscher pointed out, as the stabilization wasn’t there. He personally spent 12 hours on a flight simulator and a further 16 hours just learning how to hover, for instance. X Page A33

707,305, 5,>: 4HYJO W Page A32 In the fall of 2008, the company took a major step forward with its X6 model, which is still offered today. It had an 11-sensor package, with three gyroscopes, three accelerometers, three magnetometers, one GPS and one barometric sensor. Saskatoon Police now has two of these units. “The idea was to use them in with the tactical unit,� he said, adding they are mostly used in collision reconstruction and major crime scene investigation. In Saskatchewan, the RCMP operates 12 Draganfly UAVs. The additional sensor capabilities provide complete telemetry, visible on a screen built into the controller. “You know your heading and bearing, battery strength on the chopper and GPS (co-ordinates),� Lauscher said. A top-of-the-line X4-ES can lock “stare points,� keeping its camera fixed on an object of interest. The units are built in Saskatoon. “Everything is out of Saskatoon here,� he said, adding their technology is proven, and they have good customer support. Components are contracted out, including carbon fibre chassis and wiring harnesses. “We have our own programmers and engineers,� he said. Depending on the model, industrial UAVs from Draganfly can cost as much as a base-level 4x4 pickup truck. But there are less expensive models, too. Hundreds have been deployed all over the world to a wide variety of applications. Some clients include realtors and realty developers. For instance, a condo builder might want to show what the view will be from the tenth floor once a tower is built. Applications include examining a structure during construction, or progress shots of a development. Educational institutions can use them for research. There’s usage in agriculture, engineering and wildlife management. The biggest difference between using a UAV, or drone, compared to a full-sized helicopter is cost. In addition to the helicopter, you’re paying for the pilot too. Plus they can’t always get the shots, Lauscher noted. “You can have your client right next to you,� he said. There are limits to what you can do, however, under current regulations issued by Transport Canada. “With Transport Canada, it’s all about safety of

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people in the air and on the ground. Current regulations were developed at a time when this existed only in the military realm,� Lauscher said. For instance, to use a UAV in Canada commercially, you are required to have a special flight operating certificate, or SFOC. Lauscher noted there used to be a one-week turnaround for such applications. Now it can be a four month process. The restrictions are such that if you wanted to do a flight in downtown Saskatoon, for instance, you are supposed to have personnel blocking off the sidewalks in the operating area. “For the oilpatch, people are already using systems for site assessments, looking at current conditions, access into a site, and site prep,� said Lauscher, adding there are probably a half dozen units used in the oilpatch right now. In the natural gas business, they are used for inspection of bigger flare stacks. Some work has

been done on pipeline inspections. Current Transport Canada regulations do not allow for operations beyond line-of-sight, however In some applications, a fixed-wing UAV may be more appropriate, such as longer duration flights. But when you have to stop, a rotor-based UAV may be better. “Why are there so many types of tools? One tool doesn’t do everything,� Lauscher said. “The same applies for this industry.� In addition to visual spectrum cameras, Draganfly offers two versions of thermal imaging cameras, also known as FLIR (forward-looking infrared). One of these was used by the RCMP to find that missing man last May. Some models can carry both a visual spectrum camera and thermal camera at the same time, and flip between the two. In agricultural applications, multi-spectrum cameras can be used to look at plans to determine moisture content and disease.

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.H\VWRQH ;/ ZLOO FUHDWH MREV LQ &DQDGD Calgary – About 3,900 Canadian pipeline workers mostly in Alberta and Saskatchewan are waiting for their turn to party. That’s the number of jobs that TransCanada Corporation says will be created in Canada to construct the Keystone XL pipeline. TransCanada is awaiting a U.S. presidential permit to build the $5.4 billion cross border pipeline will carry diluted oilsands bitumen from Hardisty Alberta to refineries in Texas. Meanwhile, the Calgary-based company celebrated the first delivery of oil on its Gulf Coast pipeline from Cushing Oklahoma to customers in Nederland Tex. on Jan. 21. The Gulf Coast line is the southern leg of the proposed Keystone XL and is linked to the existing Keystone pipeline. TransCanada officials marked the milestone with a news conference in Calgary thanking some of the 4,844 American workers and suppliers who built the 487-mile crude oil pipeline. The completion of the US$2.3 billion crude oil pipeline provides a safe and direct connection between the important oil hub in Cushing and delivery points on the U.S. Gulf Coast. “It’s an important benefit for all Americans who will benefit from enhanced energy security and enhanced reliability of that supply,� said Russ Girling TransCanada president and CEO. “Gulf Coast refiners can now access cheaper

WHERE ENERGY MEETS SAFETY

&Ĺ˝ĆŒ ƚŚĞ ĹŻÄ‚Ć?Ćš ĆšĹšĆŒÄžÄž Ç‡ÄžÄ‚ĆŒĆ?Í• dĆŒÄ‚ĹśĆ? ĂŜĂĚĂ Ĺ˝ĆŒĆ‰Í˜ ŚĂĆ? Ć?Ä‚ĨĞůLJ ĆšĆŒÄ‚ĹśĆ?Ć‰Ĺ˝ĆŒĆšÄžÄš žŽĆŒÄž ƚŚĂŜ ϹϏϏ ĹľĹ?ĹŻĹŻĹ?ŽŜ Ä?Ä‚ĆŒĆŒÄžĹŻĆ? ŽĨ ĹŻÄ?ÄžĆŒĆšÄ‚ Ä?ĆŒĆľÄšÄž Ĺ˝Ĺ?ĹŻ ĨĆŒŽž ƚŚĞĆ?Äž ĨÄ‚Ä?Ĺ?ĹŻĹ?Ć&#x;ÄžĆ? Ä?ĆľĹ?ĹŻĆš Ĺ?Ĺś ,Ä‚ĆŒÄšĹ?Ć?ƚLJ Ĺ?Ĺś ĎŽĎŹĎ­ĎŹ ƚŽ DĹ?ÄšÇ ÄžĆ?Ćš h͘^͘ ĆŒÄžÄŽĹśÄžĆŒĹ?ÄžĆ? ŽŜ ƚŚĞ <ĞLJĆ?ĆšŽŜÄž ƉĹ?ƉĞůĹ?ĹśÄžÍ˜ dŚĞ Ä?ŽžĆ‰Ä‚ŜLJ Ä?ÄžĹ?Ä‚Ĺś ƚŚĞ ÄŽĆŒĆ?Ćš ĚĞůĹ?Ç€ÄžĆŒÇ‡ ŽĨ Ĺ˝Ĺ?ĹŻ ŽŜ Ĺ?ĆšĆ? 'ƾůĨ ŽĂĆ?Ćš ƉĹ?ƉĞůĹ?ŜĞ ĨĆŒŽž ĆľĆ?ĹšĹ?ĹśĹ? KĹŹĹŻÄ‚ĹšŽžÄ‚ ƚŽ EÄžÄšÄžĆŒĹŻÄ‚ĹśÄš dĞdžĂĆ? ŽŜ :Ä‚ĹśÍ˜ ĎŽĎ­Í˜ dŚĞ Ď°Ď´Ďł ĹľĹ?ĹŻÄž ĹŻĹ?ŜĞ ĞdžƚĞŜĚĆ? ƚŚĞ Ä?Ä‚Ć?Äž <ĞLJĆ?ĆšŽŜÄž Ć?LJĆ?Ͳ ƚĞž ƚŽ ƚŚĞ h͘^͘ 'ƾůĨ ŽĂĆ?ĆšÍ˜ dŚĞ Ä?ŽžĆ‰Ä‚ŜLJ Ĺ?Ć? Ç Ä‚Ĺ?Ć&#x;ĹśĹ? ĨŽĆŒ Ä‚ h͘^͘ Ć‰ĆŒÄžĆ?Ĺ?ĚĞŜĆ&#x;Ä‚ĹŻ Ć‰ÄžĆŒĹľĹ?Ćš ƚŽ Ä?ĆľĹ?ĹŻÄš Ĺ?ĆšĆ? Ć‰ĆŒĹ˝Ć‰Ĺ˝Ć?ĞĚ Ä?ĆŒĹ˝Ć?Ć? Ä?Ĺ˝ĆŒͲ ÄšÄžĆŒ <ĞLJĆ?ĆšŽŜÄž y> ƉĹ?ƉĞůĹ?ŜĞ ƚŚĂƚ Ç Ĺ?ĹŻĹŻ Ä?ŽžĆ‰ĹŻÄžĆšÄž ƚŚĞ Ć?LJĆ?ƚĞž ĂŜĚ Ä?ĆŒÄžÄ‚ĆšÄž ĎŻÍ•ϾϏϏ ĹŠĹ˝Ä?Ć? Ĺ?Ĺś Ä‚ĹśÄ‚ÄšÄ‚Í˜ &Ĺ?ĹŻÄž ƉŚŽƚŽ

domestic crude instead of relying on oil from other countries that have weak or no environmental standards and do not share American values.� Volumes on the 36-inch Gulf Coast pipeline will go from an initial flow of about 300,000 barrels per day to 520,000 in the first year of operation carrying a mix of Canadian and U.S. oil.

We support the people who keep our communities safe. Our Safe Community program provides ďŹ reďŹ ghters, police departments and other ďŹ rst responders with funding for everything from equipment to training. The program gives the men and women who protect us the support they need to ensure the safety and wellbeing of our communities, now and into the future. Enbridge delivers more than the energy you count on. We deliver on our promise to help make communities better places to live. It’s part of the reason we were named one of the Global 100 Most Sustainable Corporations in the World. Enbridge.com/InYourCommunity

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Production will then and ramp up to 700,000 bpd with the potential to transport up to 830,000 bpd. The pipeline startup also turns the focus to the need for the $US5.4 billion Keystone XL pipeline to go ahead after more than five years of scrutiny and review by the Obama administration. “The case for Keystone XL is strong. Our customers continue to support it, states along the route have approved it,� said Girling. “We are ready willing and wanting to put more than 9,000 Americans to work. “The real question is where does the United States want to get their oil from and how do want to get transported?� More than half of the 15 million barrels of oil per day that the U.S. consumes is imported. Even with growing U.S. production and fuel efficiency standards industry experts forecast the U.S. will need to import four to six million bpd through 2040. Girling said the Keystone XL pipeline will provide American refineries the opportunity to use more of the crude oil produced in both Canada and United States for years to come. The Keystone XL pipeline would ship mostly Canadian oil to Texas, but TransCanada has set aside about 100,000 bpd of U.S. Bakken oil and about 250,000 bpd to be initiated at Cushing. Currently, about 530,000 bpd of Canadian oil moves through the base Keystone system to Midwest refineries in Patoka and Wood River Illinois. In addition, about 50,000 bpd of Canadian oil makes its way to Gulf Coast refineries by a variety indirect means such as rail and ocean tankers. “The Gulf Coast pipeline was designed to connect North American oil production to North American markets,� stressed Girling. He noted that growing energy production in Oklahoma, Texas, North Dakota and Montana and Canada has created a giant glut in places like Cushing Okla. X Page A35

707,305, 5,>: 4HYJO to move hydrocarbons over long distances, but he told reporters their customers aren’t waiting for the Keystone XL to get their oil to the Gulf. â€œâ€Ś I think you can already see that our customers aren’t waiting for the pipeline to get into service. Production continues to grow both in Canada and in the U.S. Bakken area and other dŚĞ 'ƾůĨ ŽĂĆ?Ćš ƉĹ?ƉĞůĹ?ŜĞ ƚŚĂƚ ĞdžƚĞŜĚĆ? ƚŚĞ ĞdžĹ?Ć?Ć&#x;ĹśĹ? <ĞLJĆ?ĆšŽŜÄž ƉĹ?ƉĞůĹ?ŜĞ ĨĆŒŽž ĆľĆ?ĹšĹ?ĹśĹ? KĹŹĹŻÄ‚- areas,â€? said Girling. “We’ve seen a ĹšŽžÄ‚ ƚŽ Ĺ˝Ĺ?ĹŻ ĆŒÄžÄŽĹśÄžĆŒĹ?ÄžĆ? Ĺ?Ĺś dĞdžĂĆ? ĆŒÄžĆ‹ĆľĹ?ĆŒÄžÄš Ä‚ ƉĹ?ƉĞůĹ?ŜĞ Ç Ĺ˝ĆŒŏĨŽĆŒÄ?Äž ŽĨ Ď°Í•Ď´Ď°Ď° ĹľÄžĆŒĹ?Ä?Ä‚Ĺś Ç Ĺ˝ĆŒĹŹÄžĆŒĆ? ƚŽ Ä?ŽžĆ‰ĹŻÄžĆšÄžÍ˜ dĹšĹ?Ć? ƉŚŽƚŽ Ć?ĹšĹ˝Ç Ć? Ä?ĆŒÄžÇ Ć? Ç ÄžĹŻÄšĹ?ĹśĹ? Ä‚ Ć?ÄžÄ?Ć&#x;ŽŜ ŽĨ ƚŚĞ ϯϲͲĹ?ĹśÄ?Ĺš Ä?ĆŒĆľÄšÄž Ĺ˝Ĺ?ĹŻ ƉĹ?ƉĞ- large increase in rail ĹŻĹ?ĹśÄžÍ˜ WŚŽƚŽ Ć?ĆľÄ?ĹľĹ?ƊĞĚ movement – we don’t think that’s permanent world.â€? tions include things W Page A34 because our customers The pipeline project like a higher number “Gulf Coast refinercontinue to want the of remotely controlled ies couldn’t access lower also includes 2.25 milpipeline built for the lion barrels of new oil shutdown valves and cost domestic produclong term. increased pipeline instorage in Cushing. tion and were forced to “But in the interim, Girling told the spections. pay a premium to ship you’ll see a lot more oil The pipeline was crude from foreign sup- conference that the Gulf moved by other means Coast pipeline has set a also built to higher pliers,â€? he said. and the primary means new standard for safety construction standards, “The Gulf Coast at the current time is increased standards for project will change that. and design and met 57 trucks and rail car and conditions set by the pipeline integrity main- we seeing an exponenThe Gulf Coast project U.S. Pipeline and Haztenance and the pipeline tial increase in those links North American crude supply to the Gulf ardous Materials Safety was buried deeper in the kinds of movements.â€? ground. Coast which is the larg- Administration. Girling also noted The safety standards Girling said a pipe- Keystone is sold out. est and most efficient line is the safest way and operating condirefining centre in the “Our customers have

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requested 100 per cent of the capacity of the system.� He pointed that the Gulf Coast project was designed as part of a larger Keystone system and is not complete without Keystone XL. “The way I look at it is we are three quarters of the way through a major project,� said Girling. “In total, the cost of the project is in the neighbourhood of about $15 billion. “One quarter of it has now been held back for about five years. That’s inefficient. The system isn’t operating as efficiently as it could be.� He said the fact TransCanada has delivered over 500 million

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bpd safely over the last three years on the base Keystone, and now the Gulf Coast line, shows they can do the same with Keystone XL. â€œâ€ŚAgain showing people that this isn’t an export pipeline to be operated safely should provide the base underpinning and evidence that the Keystone XL is at the end of the day just another piece of energy infrastructure,â€? said Girling. “It is just a pipeline and it can be built and operated safely and that’s our intent is to continue to be transparent, to make our operating history available and to work through any glitches or kinks we have in the system in a prudent way.â€?

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The Weyburn Oilmen’s Bonspiel took place Jan. 24-25. They had a full slate of 24 teams and 96 curlers. “We actually had extra rinks wanting to get it. The quicker you get your team in, the better,� said Michael Mainil, one of the organizers. Proceeds from the event went to junior curling in Weyburn.

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%RXQW\ SRVWHG RQ :DLQZULJKW FXUOHUV „ By Geoff Lee Wainwright – The Wainwright and District Oilmen’s Bonspiel has the makings of an exciting reality-based television show mixing curlers and bounty hunters. The 36th annual event held Jan. 31 to Feb. 2 was a dramatic affair with a $100 bounty sponsored by NOV Wilson payable to the first team to beat the defending D & C Melin champs. The cash incentive worked as the perennial A-Event winners were knocked off their high horse in their first match. “Their main skip backed out so they had a little trouble right off the bat, but they pulled it together and got the B-Event,� said bonspiel association president Mitch Wahlberg. “We have a new winner this year, being the Ron’s Vac team. Ron’s Vac players Ty Murray, Wade Grunow, Mike Smith, Steve Smith will have a target on their backs in 2015. “We’re going to do it again next year with the A team. It gives everyone something to try to do,� kidded Wahlberg, a technical sales rep for Caradan Chemicals Inc. that sponsored the A-Event. The B-Event sponsored by NOV Wilson went to the D & C Melin squad of Brad Johnson, Dustin Small, Chris Cristiansen and Dallas Melin. D & C Melin had won the A-Event four years in row before the bounty hunters picked them off. This year’s C-Event sponsored by NALCO Champion-Wainwright is the Baker HughesVolk foursome of Dustin Haun, Chris Volk, Jessie Guy and Colin Henry. D-Event sponsored by Baker Hughes fittingly went to the Baker Hughes-Tipler team of Kerry Frissell, Doug Dalton, Brad

Horpestad and Travis Tipler. Wahlberg curled on his Caradan company team that wound up in the ‘thanks for coming category.’ “I’m there for faith. I’m not a big curler,� he joked. Looking ahead, Wahlberg hopes to fix a scheduling conflict with a local hockey tournament that robbed the bonspiel of six teams with only 16 participating this year. “Last year, we had 22. When you live in a small town you’ve only got room for one event really,� he said. “That’s definitely not going to happen next year. There was a communication problem.� Wahlberg says next year’s tournament will also be held on Super Bowl weekend – with 22 or more teams. “That’s the plan. We are already working on that. We want to make sure we are not fighting with any other events going on,� he stressed. Despite the conflict of sporting interests, Wahlberg has nothing but good things to say about this year’s corporate sponsors and donations. “We got tons of sponsorships. I can’t really do it without those guys,� he said. He made a special

shout-out to Marty Stephen from Raider Well Servicing for sponsoring cabs. “That’s huge for us. No drinking and driving is our policy. He stopped by our banquet,� said Wahlberg. He said Stephen was in town to play in the old timer’s tournament but he may curl next year. The bonspiel included a banquet and dance with a DJ and a silent auction at the Elk’s Lodge. As usual, there were plenty of donations for event prizes and for the silent auction. “I am not quite sure how we did on the numbers, but obviously not as good as last year,� said Wahlberg. “With our numbers down you don’t get quite as many people spending their money, but what can you do? “We kind of took it as a ‘wash year’ and hopefully, next year, we are back up to 22 at least. “From this year and last year we are donating $2,000 to the food bank. We haven’t figured out our financials but we might give more.� The event also included a popular dart bonspiel for a prize. “There was lots of loot. Everyone got a prize,� said Wahlberg.

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Oakdale RM expects Torq road deal soon „ By Geoff Lee The Rural Municipality of Oakdale continues to work on a road agreement with Torq Transloading Inc. that plans to construct its $100 million Kerrobert rail terminal on Pipeline Road about 15 kilometres southeast of Kerrobert. Torq secured $250 million in funding in December to help fund the construction of the terminal and other crudeby rail projects in Western Canada.

The terminal is engineered to handle two, 120 car unit trains per day or up to 168,000 barrels per day and could see up to 150 trucks per day on the road during peak volumes. RM Reeve Darwin Whitfield is tight-lipped about ongoing negotiations that involve several oilfield roads and other producers and service providers, but he is optimistic a deal is coming soon. Whitefield answered a few questions about it prior to an interview at

the Kindersley Regional Airport on oilfield uses of the airport in the region. PN: What is the status of the road agreement with Torq Transloading? Whitfield: We are still in the negotiation process and waiting for them to go through it with the lawyers and stuff. That’s all I can really say on that part. PN: When do you think it will be finalized? Whitfield: I talked

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to them on Thursday (Feb. 6) and they were hopefully going to have some decisions on moving forward by the end of the month. Everything is in their hands. We’ll see where it goes. PN: Are you optimistic? Whitfield: Oh I think so. They’ve been good to work with. It’s just a matter of every-

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thing being in place for each other. We are just waiting for the final details to get ironed out. PN: Can you release any details of the agreement? Whitfield: It’s still confidential until everything’s in place. PN: Have they told you when they are going to start construction? Whitfield: No, there hasn’t been any discussion that way until the agreement’s in place. That’s where we’re standing right now. PN: Do you think the Torq project will have a tremendous impact on the economy of the area? Whitfield: Yes, there’s many things going on here that can help the economy, but the roads have to come into that prospect too. There’s got to be some shared interest in developing an economic drive with the infrastructure of roads to get them where they’ve got to go. PN: Is it just Pipeline Road leading to the Torq site that is involved in the road

agreement? Whitfield: No, we’re dealing on another section of road too where there are multiple players involved – producers and service providers – and working towards helping to make things better. It’s a work in progress. We’re trying to make something that’s fair for everybody and supply some roads that they need. So we are trying to come to some sort of understanding about what everybody expects and needs – at all levels of government. PN: What impact will the Torq project have on the airport? Whitfield: I’m not sure – hands-on employment maybe. I don’t know if they need to fly employees in. I’m not sure where all that would fall. Every week, there’s a couple or three flights with oil and stuff coming in. It definitely helps the oil industry with it being here. I’m not aware of Torq coming in by plane. I don’t know, they may have.

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PIPELINE NEWS

SECTION B March 2014

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ĞŶƚƌĂů DŽƵŶƚĂŝŶ ŝƌ ŝƐ ƚĂŬŝŶŐ ĂĚǀĂŶƚĂŐĞ ŽĨ ƚŚĞ ŶĞĞĚ ĨŽƌ ƌĞƚƵƌŶ ďƵƐŝŶĞƐƐ ŇŝŐŚƚƐ ĨƌŽŵ >ůŽLJĚŵŝŶƐƚĞƌ ƚŽ ĂůŐĂƌLJ ďLJ ƉƌŽǀŝĚŝŶŐ Ăƚ ůĞĂƐƚ ƚŚƌĞĞ ŇŝŐŚƚƐ ƉĞƌ ĚĂLJ DŽŶĚĂLJ ƚŽ &ƌŝĚĂLJ͘

By Geoff Lee Lloydminster – There were 14,732 landings and takeoffs at the Lloydminster Municipal Airport in 2013 and that number will head upward in the coming years as heavy oil itself takes flight in the energy sector. “The interest in oil and gas is increasing because heavy oil is having its day right now and the price of heavy oil is remaining fairly constant,” said Mayor Rob Saunders, “If you look at the oilsands development through into northern Saskatchewan, the Lloydminster airport is ideally situated to support that growth. “The city is positioning itself to be able to accommodate increased activity and increased economic activity through that avenue of the airport.” Lloydminster purchased 155 acres of land for $1 million in late January for future expansion of the airport into a greater transportation hub for the heavy oil industry in Western Canada. Potentially the land could be used to extend the main 5,579 ft. runway or to add parking, car rental services and retail and airport services. The purchase increases the size of airport property to 720 acres. The master airport plan is a work in progress, building on major investments in lighting and navigation upgrades completed in early 2013 along with the purchase of new snow clearing equipment.

The city sees the airport as a top transportation priority that benefits both the local community and the surrounding region. “With Lloydminster being the heavy oil capital of Canada and the fastgrowing economy here, there are many dollars being invested in this region,” said Saunders. “The airport is a key component of economic development. There is a substantial amount of business driven by the oil and gas industry.” A total of 17,013 passengers used the airport in 2013 including 16,893 on regular scheduled service between Lloydminster and Calgary on Central Mountain Air (CMA). “Probably about 75 to 80 per cent of the people flying back and forth are to do with oil and gas,” said airport manager Wade Frasz. “Generally, we see a lot of the same faces because they go back and forth. They call Lloyd home and they go back and forth to Calgary just for work.” CMA delivered 132 cargo packages in 2013 while 120 charter flight passengers used the terminal. Local flight services are provided by Border City Aviation and Courtesy Air, along with 66 privately owned planes stored in the airport’s 13 hangars or outdoors. “We have charters that come in every day and they go wherever they want to, but most of it’s into the Fort Mac area,” said Frasz. X Page B2

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Additional land purchased for future expansion W Page B1 CMA runs at least three scheduled flights a day Monday to Friday to and from Calgary and Lloydminster and some days four. “Again it’s oil and gas. We are seeing a lot more oil and gas shift changes and stuff like that in the middle of the week,� said Frasz, who noted winter is the busiest time for oil-related flights. A flight to Calgary takes just 45 minutes versus a five to six hour drive that can be dangerous in winter road conditions. It is quicker and safer to fly. The runway is lit by 118 lights that pilots can turn on remotely afterhours through the use of their radio switch. An average of two air ambulances a day land at the Lloydminster airport, usually fixed wing aircraft. Last winter, the airport received a $538,406 federal Airports Capital Assistance Program grant to replace a towed runway sweeper and a front-end loader and a loader-mounted snowblower. “We’ve actually gone from about an hour-and-a-half to half an hour to open up the runway,� said Frasz. “It will keep planes coming in. I’ve never had to close the airport except for rain.� The airport includes a 1,500 ft. turf cross wind strip. “We get a lot of private planes coming and going. They know that we will

actually have the airport open,� said Frasz. “A lot of airports in the area are the smaller ones like the non-registered ones and don’t have the services we have here.� The Lloydminster airport is a certified facility rated to handle up to one 737-200 passenger plane per minute if the air traffic warranted it. “Certified means we have to meet strict standards by Transport Canada,� explained Frasz. “There is a lot of paperwork to keep the airport certified. As of 2014, we have a full blown safety management system (SMS) for the airport. “We have to maintain that and follow all the regulations.� Frasz is a director on the board of Alberta Airports Management Association that is reviewing those SMS Transport Canada regulations. Frasz is also bracing for the next 5th edition of the TP 312 manual on airport standards and procedures. “That will be a big change for airports,� he said. The airport also provides ramp security to ensure no unauthorized person mixes with passengers or puts something on a plane they shouldn’t be. It costs the city between $450,000 to $500,000 to operate and maintain the airport with some revenue generated by a passenger seat fee and government grants. “There are very few airports that make money,� said Frasz who notes that flying oil workers – especially to remote locations to the north – is a necessity. “A lot of companies look at the drive between Fort Mac and that – so they would rather fly them in.� The Lloydminster airport gets a lot of business from oil and gas companies conducting fixed wing and helicopter surveys such as seismic and pipeline work and aerial photographs. “The helicopter activity is interesting because in northern and remote areas in the oil and gas business – I know in my experience we used to fly equipment right into the well site,� said Saunders, who has extensive oilfield experience. “The drilling rig would finish the completion and then we would bring the completion equipment right in with helicopters. The crew would get off and install the equipment and then fly back out. “I think we are seeing an increased activity in that type of form of transportation.� Saunders is confident the Lloydminster airport will capture more aviation business from all of the major oil and gas developments from the Alberta oilands to the lighter oils in Kindersley. “Lloydminster is sitting right in the dead centre in that whole development of those energy resources in the mid-west,� he said. “We are in an ideal spot for the growth of the airport.� He said public reaction is in favour of council’s decision on Jan. 27 to acquire more airport land to optimize the development of the airport as a regional service centre. “I think people are supportive of the initiative because they understand how important it is – the key to future prosperity and growth and for the need for these forms of transportation,� said Saunders. Frasz also gives the land purchase a thumbs up. “You always want to grow the airport to make sure you are always going forward,� he said. The parcel of land may continue to be leased as farm land until the city moves forward with its airport expansion plans. Saunders says looking ahead over the next 10 years, he expects to see the number of takeoffs and landing to continually increase. “Just with the capital investment in our city and region, you will see a lot more business flights to accommodate the commerce that’s done,� he said “We have one of the best located airports to support future growth in the whole region and the northern part of the province.� “Of the course the oil and gas industry is fueling a lot of that.�

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Sharp-Tail Aviation provides corporate charters‌ „ Story and photos by Brian Zinchuk Estevan – When pilot Aaron Elmy releases the brakes, the Beechcraft King Air B200GT lets it be known it wants to fly. The acceleration is immediately felt in your gut as the twin-turboprop lifts off from the runway at its Estevan Airport home base. In very short order it’s climbing and doing a good clip. Very soon we’re over Lampman, then doing a lazy loop to the left before circling in for a landing. When the pilot wants to get somewhere, the plane will take you there in a hurry. Welcome to Sharp-Tail Aviation, the only corporate charter service of its type based in southeast Saskatchewan. The fleet consists of just one plane, but it’s special. That’s because it’s a rarity in aviation – it was actually picked up new from the factory. Most planes in this line of work can be decades old, and often having changed hands several times. Elmy got to take the plastic off the seats. Our flight is short and low, not at all characteristic for this King Air. Sitting in the left-hand seat in the cockpit, Elmy, manager of the company, said, “I don’t go anywhere under 30,000 feet. It’s all because of the fuel burn.â€? Turbine engines are most efficient at high altitude. The avionics “glass cockpitâ€? would not be out of place on the most

modern airliners. Elmy noted the only substantial difference was there were three main screens, with the centre one shared, instead of two per pilot. “It’s the same as you see on airliners,� he said. “I do 300 knots, about 345 miles per hour,� Elmy noted. Due to prevailing westerly winds, that means trips going west take a little longer than the return flight coming home. The opposite is true for eastern destinations. Thus, from Estevan, a flight to Calgary will usually take two hours going there, but only one-and-a-half hours coming back. Phoenix is less than three hours. Vancouver is two-anda-half hours there, and two back, while Toronto/Hamilton is three hours there and threeand-a-half hours back. Those numbers work out favourably when one considers driving from Estevan to Regina takes two hours, then there’s the hour or two you need to spend going through security and waiting for your flight, the flight itself, deplaning, and waiting for luggage. A charter flight with Sharp-Tail will have the client on the ground in Calgary before they realize they forgot to remove their shampoo from their carry-on luggage in the security line in Regina. “This is one of the newest airplanes on charter. It’s a 2011,� Elmy said as we fly over a Panther Drilling rig working southeast of Lampman.

The King Air has 1,000 hours on it. “I picked it up at the factory,� he said. On the screen in front of each pilot, a pair of “angel wings� appear. They are the invisible track in the air programmed into the GPS system which will guide the pilot safely to the runway. Keep the graphical representation of the King Air’s wings within the angel wings, and it will put you right on the sweet spot of the tarmac. Chatter on the radio indicates another plane will be landing shortly after we do. When flying as a corporate charter, there are two pilots up front. On a private flight such as this, just one pilot is required. In the back there are six plush leather seats that can move out into the aisle for more room. The ample space, including legroom, makes flying economy look like a sardine can in compari-

Ä‚ĆŒŽŜ ůžLJ ŇĹ?ÄžĆ? ŽŜÄž ŽĨ ƚŚĞ ĹśÄžÇ ÄžĆ?Ćš Ä?Ĺ˝ĆŒĆ‰Ĺ˝ĆŒÄ‚ĆšÄž Ä?ĹšÄ‚ĆŒĆšÄžĆŒ Ä‚Ĺ?ĆŒÄ?ĆŒÄ‚ĹŒ Ä‚ĆŒŽƾŜĚ͕ Ä‚ ĞĞÄ?ĹšÄ?ĆŒÄ‚ĹŒ <Ĺ?ĹśĹ? Ĺ?ĆŒ ĎŽĎŹĎŹ'd͘ ůžLJ ŚĞĂĚĆ? ƾƉ ^ĹšÄ‚ĆŒĆ‰ͲdÄ‚Ĺ?ĹŻ Ç€Ĺ?Ä‚Ć&#x;ŽŜ ĂŜĚ ^ĹšÄ‚ĆŒĆ‰ͲdÄ‚Ĺ?ĹŻ Ĺ?ĆŒÍ˜

son. The middle seats can spin around to face front or back as need be. A seventh seat near the door is also a commode. There’s also a wet bar for clients. Luggage is stowed in the back. Each window as a

rotating polarizing element which allows the passengers to let in or block out as much light as they like. Two sides There are actually two sides to Sharp-Tail. Sharp-Tail Aviation is

the commercial aviation side providing corporate charter services. Elmy and Ron Carson are the sole owners of SharpTail Aviation Ltd., as he noted, “I’ve got some very good partners.â€? ɸ Page B4

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‌ while Sharp-Tail Air offers maintenance and operations services Éş Page B3 Family-owned Sharp-Tail Air is the Elmy’s other side, providing aircraft maintenance and operations. In some cases, it’s simply making sure the plane’s maintenance is kept up. In others, it means providing pilots (including himself ) to fly the plane for the client. With the prevalence of the oilpatch in the region, there are a number of clients who need someone to look after their airplanes. Shawna runs both companies, handling the dispatching and business management. They are based in Weyburn, and have an acreage a short distance from the Weyburn Airport. “I manage a number of different planes on different levels,â€? he said, now sitting in hangar of a client who has their own private plane. Elmy maintains an office in that hangar in addition to their Weyburn home base. It makes sense to have an office in Estevan, since just about all their corporate charter work comes out of the Energy City. There’s the odd trip out of Carlyle, Weyburn or Regina. As such, the King Air’s home is in the main common hangar in Estevan. “This is a complete management package – pilots, maintenance, regulatory and others. Sometimes I fly once in a while for them, or do maintenance,â€? he said. The company has seven people, of which five are pilots. “I’m the only licensed engineer. Everybody has something on the side. All

their schedules are flexible.â€? Elmy said. “I maintain a handful of aircraft. Some are family friends. I stick to everything that’s bigger – pressurized, turbine-powered.â€? Spinoff of Carson Energy sale Sharp-Tail Aviation got its start as a spinoff from the acquisition of Carson Energy Services by Flint Energy Services in 2011. (In short order Flint was then purchased by URS. The Flint name is now being wound up, in favour of URS.) “I was managing the corporate flight department for Carson Energy when Flint purchased it,â€? Elmy said. “I was an employee of Carson Energy at the time.â€? How much of their business is oil-related? “In some way, shape or form, just about all of it,â€? he said. “They own planes because of the oilpatch.â€? Another client, he pointed out, has planes just for fun, but he made in money in the oilpatch. While in the air, beginning the approach to land, Elmy noted that he gets more business when the roads are bad than if they are clear. “Lloydminster is a primary example. A normal drive would take eight hours in good weather or 12 hours in bad. I can get you there in an hour. We only need a mile of good runway,â€? he said. ɸ Page B5

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by the Snowbirds. “After high school, with a gentle nudge from my dad, I decided to try something other than farming. I had been farming with my grandfather. I continued on and got my commercial license. Most of it I did with John Erickson in Estevan with Sunrise Aviation. I did it on my own airplane, an Aeronca Champ. “I did my commercial licence here. My float rating was in Nelson, B.C. I did multi-engine and IFR (instrument flight rules) in Winnipeg. I went north when I was 20 years old,� he added. That’s were Elmy became a bush pilot, picking up character traits that stick with him to this day. The come out in the way he operates his business. For instance, he noted, “All my pilots help with maintenance. I believe that’s a very important part. If you fly an airplane, I make you fix it. It’s an old bush pilots rule. It’s a trust thing.� While up north, Elmy did it all, saying, “I flew floats, skiis, twins; fought fires; flew dead people, live people – a bit of everything. “When I was up north I started working for Karen O’Brien, a gem of a lady. My aptitude as a mechanic came out and I started my aircraft maintenance engineer (AME) licence. I spent four years getting that. I was licensed in 2005, and we moved south in 2005,�he said. It was bush pilot years that Shawna came up to join Aaron. “I moved her up from Weyburn as a dispatcher. We needed help.� While Shawna was in Buffalo Narrows, Aaron was all over the place. They eventually made the hard choice to move south for family reasons. The couple have been together for 14 years, and were married in 2005 “I loved flying the bush, but I would never get my fill,� he said.

dŚĞ ƉůƾĆ?Ĺš ĹŻÄžÄ‚ĆšĹšÄžĆŒ Ć?ĞĂƚĆ? Ä?Ä‚Ĺś žŽÇ€Äž ŽƾĆš ĆšĹ˝Ç Ä‚ĆŒÄšĆ? ƚŚĞ Ä‚Ĺ?Ć?ĹŻÄž ĂŜĚ ĂĚŊƾĆ?Ćš Ĺ?Ĺś žŽĆŒÄž Ç Ä‚Ç‡Ć? ƚŚĂŜ LJŽƾ Ä?Ä‚Ĺś Ĺ?žĂĹ?Ͳ Ĺ?ĹśÄžÍ˜ dĹšÄžĆŒÄžÍ›Ć? Ä‚ ůŽƚ žŽĆŒÄž ĆŒŽŽž ƚŚĂŜ ŇLJĹ?ĹśĹ? ÄžÄ?ŽŜŽžÇ‡ ŽŜ Ä‚ Ä?ŽžžÄžĆŒÄ?Ĺ?Ä‚ĹŻ ŇĹ?Ĺ?ĹšĆšÍ˜

W Page B4 Other typical charter destinations include Calgary, Fort McMurray, Edmonton, Saskatoon and Winnipeg. Asked if much of the work is flying to hockey games or golf destinations, he replied no. “It’s all business,� he noted. “There was a contract in place for a specific client.� However, since then the work has snowballed. Elmy also provides consulting on items like operating manuals and safety management systems, which are in demand. For Sharp-Tail Aviation, he said, “We were licensed Jan. 1, 2013. It took 14 months prior to that to get into operation. I had to do some serious pushing to make it happen.� Like every other person Pipeline News interviewed in southeast Saskatchewan this month with regards to aviation, Elmy noted that Transport Canada is swamped. There’s room for more charter flights and for both business to grow, but for Elmy himself, he’s pretty much peaked at how much he can handle. Additional growth will be borne by others in the operation. The Elmys have three kids, ages 7, 10 and 16, about whom he said with a smile, “None of which will fly.� He joked about A.I.D.S. – aviation-induced divorce syndrome. “Luckily, I’m on my first wife,� he added. Born to fly Elmy is 35, but he’s said he’s been flying for 20 years. “I was born in Arcola. I grew up on a farm between Kisbey and Arcola. My dad had an airplane on the farm, an Aeronca Champ, a little taildragger twoseater. “I’ve been flying as long as I’ve been alive.� His father, Milton Elmy, still flies, but he’s retired now. “He does some flying for me, and maintenance. He’s the best hand I have,� Elmy said. “He worked for Mainils for 27 years.� Elmy was an air cadet from the age of 12 until he aged out of the program at 18 at the highest rank possible, warrant officer first class. “I did a lot of travel with it. I got my glider and pilot’s licence. (At flight instruction camp) I got top pilot, so they took me up in a Tutor. That was one of the highlights of my flying career,� Elmy said. The Tutor is the plane flown

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Tuesday, April 1st 7 pm Days Inn, Estevan

Lot 4

Randy Franke 306-421-2244

Lot 5, 6, 7

Lot 9 Lot Lot 2B 2A Lot 1

LOT

RM of Cambria No. 6 for Brian & Patti Marcotte

PARCEL

ACRES

FVA

NE 15-03-07-W2 RM OF ESTEVAN #5

159+

82 400

2013 TAXES $528.88

2A. SE 21-03-07-W2 RM OF ESTEVAN #5

159+

78 600

$504.49

150

Canola

2B. SW E1/2 21-03-07-W2 RM OF ESTEVAN #5 (LSD 3&6) (LOTS 2A & 2B WILL BE) SOLD AS ONE PARCEL

80+

44 000

$282.4

170

Canola

3.

SW 28-03-07-W2 RM OF ESTEVAN #5

159+

76 400

$490.37

145

Canola

4.

SW 34-03-07-W2 RM OF ESTEVAN #5

159+

76 300

$377.68

145

Canola

5.

SE 30-03-07-W2 PARCEL B RM OF ESTEVAN #5

20+

11 200

$71.89

18

Canola

6.

SE 30-03-07-W2 PARCEL C RM OF ESTEVAN #5

20+

11 200

$71.89

18

Canola

7.

SE 30-03-07-W2 PARCEL D RM OF ESTEVAN #5

20+

11 200

$71.89

18

Canola

8.

SW 30-03-07-W2 PARCEL G RM OF ESTEVAN #5

20+

11 200

$71.89

16

Canola

9.

NW 6-03-11-W2 RM OF CAMBRIA #6

159+

48 900

$416.10

92

Canola

10. SW24-03-09-W2 RM OF ESTEVAN #5

159+

72 700

$466.62

1.

CULTIV. 2013 ACRES CROP 150 Canola

(LOTS 2A & 2B WILL BE SOLD AS ONE PARCEL)

Durum & Summerfallow

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Lot 3 Lot 8

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Ken Mehler 306-421-9576

Lot 10

RM of Estevan No. 5 for Brian & Patti Marcotte

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Bismarck, N.D. – The 2014 Williston Basin Petroleum Conference will be held in Bismarck, N.D. May 20-22. This is the 22nd year the event has taken place, alternating between North Dakota and Saskatchewan each year. Regina is the host every second year, and will be host again in 2015. The Williston Basin Petroleum Conference (WBPC) has grown substantially in the last six years in conjunction with the explosive growth of the Bakken play, in both Saskatchewan and North Dakota, but primarily south of the border. North Dakota has gone from 90,000 barrels a day of oil production to nearly 1 million barrels per day. It had peaked at 976,000 bpd before falling to 923,000 bpd in December due to weather. North Dakota is now the second largest oil-producing state in the union, leaving Alaska and California in its wake. The conference has grown along with it. The event is expected to attract more than 4,000 attendees this year. Organizers have bought enough supplies to handle 5,000. The slogan for this year’s conference is “Bakken Strong.� The North Dakota Petroleum Council, North Dakota Department of Mineral Resources, and the Saskatchewan Ministry of the Economy act as conference hosts. Throughout the event there are hun-

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dreds of indoor and outdoor booths. The booths typically sell out faster than a highlyanticipated rock concert. This year it only took four minutes to sell out, and they had doubled the amount of indoor exhibition space over 2012. “We have more than 500 booths,� said Tessa Sandstrom, communications manager for the conference. “We quit taking a waiting list. There are 384 exhibitors in total. If you haven’t booked your hotel room yet, you’re probably out of luck in Bismarck. As of mid-February, she said there were only about 100 rooms left. That’s despite having built 1,000 new rooms since the last conference. Some companies bought large blocks of rooms, however, and some of those rooms may become available, she noted. The 2012 WBPC was the biggest event ever held in Bismarck. This year is expected to be bigger. Early bird registration discounts end on April 15. Registration is done online at www. wbpcnd.org. On May 20 sessions will be held on the Enbridge Sandpiper project, Tesoro’s High Plains Pipeline, and several sessions on crude-byrail. One will focus on rail car safety. Liquefied natural gas for drilling rigs will be looked at, as well as naphtha utilization, remote capture technologies to improve gas utilization, and the Dakota Prairie Refinery. Workforce demographics and housing will also be discussed. May 21 starts with North Dakota Governor Jack Dalrymple, and is followed by representatives from Saskatchewan, Manitoba, Montana, South Dakota and North Dakota discussing what is going on in their jurisdictions. Don Bari of IHS Cera will discuss market opportunities for natural gas liquids. The luncheon keynote speaker will be

Lee Tillman, president and CEO of Marathon Oil Corp. He will be followed by sessions on integrated reservoir characterization and modeling in support of enhanced oil recovery for the Bakken and a review of offset producing well protection during frac operations. Breakout sessions will focus on Williston Basin geology in the Tyler formation and in the Pronghorn project area. Regulatory and environmental sessions will discuss federal permitting, waste facilities, and solid waste solutions. Workforce safety if focused on in another breakout session. Following video presentations by North Dakota’s senators and congressman in Washington, Lynn Helms of the North Dakota Department of Resources will kick off May 22 with a discussion of what’s ahead for the state. Helms has been at the forefront of the Bakken boom since the get-go, and previous presentations at the last four conferences have provided some of the most detail of what is going on in the state. Tony Clark of the FERC will follow with a presentation on gas and oil infrastructure development. Tom Petrie of Petrie Partners will discuss “Domestic Oil’s World Impact.� The final presentation will feature a panel discussion with Harold Hamm, chairman and CEO of Continental Resources; Jim Volker, chairman and CEO of Whiting Petroleum, and Tommy Nusz, CEO of Oasis Petroleum. The moderator will be Ron Ness, North Dakota Petroleum Council. In previous conferences, Hamm and Volker’s presentations have been among the most colourful. In 2012, Hamm said, “A reporter asked me the other day, what’s the big deal about energy independence? It means you don’t have to send your kid over there (Afghanistan) to get killed!�

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The quest for helium is not a lot of hot air „ By Brian Zinchuk Swift Current, Dallas – A change in U.S. policy regarding strategic reserves of helium has got a Dallas company working on developing long-since shut-in helium wells in Saskatchewan. Weil Helium is part of the Weil Group. Wheeler “Boâ€? Sears, Jr., 43, was the founder and CEO of Inter-American Helium Corporation. Sears now serves as president of the Weil Group’s new subsidiary, Weil Helium. He has over 18 years of oil and gas exploration experience involving various basins throughout the United States. He played a key role in actively driving Inter– American’s investment pursuits in the midcontinent. Sears has been working on the identification and development of key helium projects across North America. He was a contributing author of the 2012 book The Future of Helium as a Natural Resource. The public’s general perception of helium is two uses: party balloons and blimps that fly over arenas during sporting events. In fact, helium’s usage is much more integral to our lives. If grandma needs an MRI on her hip, that MRI cannot function without liquid helium. “Helium is a very valuable and scarce commodity,â€? said Sears over the phone from Dallas on Dec. 13. “Helium’s primary use is in its liquid state, in MRI machines,â€? Sears said. To reach zero resistivity in the supercooled magnets, they have to be bathed in liquid helium. “There’s no substitute,â€? he said. Helium is also used in cold temperature physics labs like the

CERN Large Hadron Collider. Rocket launches also require helium. Deep sea diving uses helium as well, as does some specialized forms of welding. The primary resource comes from a field in Texas. The United States had been hoarding helium for decades, initially to fill dirigibles and blimps. Barrage balloons were used extensively during the Second World War to deter low-flying aircraft from strafing troops on the ground, with 27,000 cubic feet of helium needed for each balloon. The strategic helium reserve was established in 1935. “Back in the day, the Allies looked for helium to replace hydrogen in airships. Helium was a strategic resource,� Sears said. In the 1960s, the U.S. government started storing it in what Sears called a “big waste of money.� The Helium Privatization Act of 1996 was passed during Clinton administration at a time when a billion cubic metres of gas had been collected and the reserve was in debt to the tune of $1.4 billion. Sears explained the reserve was to be drawn down by 2014 or when the helium debt had been repaid. That repayment happened in October 2013, but Congress extended the life of the reserve, which is currently one-third of the global helium supply. Sears expects that reserve will be gone in five years. Helium is only 5.2 parts per million in air, making it extremely cost- prohibitive to extract it from the atmosphere as is done with oxygen or nitrogen. Sears said, “Helium is so minute, the energy required is completely

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cost-prohibitive.� Since there was such a large reserve in place, there’s been little impetus to develop new helium resources. When the reserve is gone, there could be a shortage. Prices have shot up accordingly. Crude helium is $96 per Mcf, and grade A helium is in the $200 to $300 range. That’s where Saskatchewan comes in. We used to produce helium, and Sears would like to see us do it again. “There was a joint venture plant just north of Swift Current from 1969 to 1977,� Sears said. It took gas to the liquid state, and also sold off nitrogen. The helium primarily saw use in Canada, he noted. “It was a hot commodity.� Depletion of the reservoir and market conditions led to the very small plant’s shutdown, Sears said. As it turns out, Saskatchewan’s uranium resources have an impact on helium, but not northern uranium. This uranium is deep in the basement, most

likely in granitic rocks, under southwest Saskatchewan. According to Melinda Yurkowski, assistant chief geologist with the Saskatchewan Subsurface Geological Survey (part of the Ministry of the Economy), helium is a product of uranium and thorium decay in the basement, the Precambrian rock beneath the sedimentary column. Sears said as the uranium and thorium decay into base lead they

give off alpha particles – two protons and two neutrons, the nucleus of a helium atom. As the alpha particles come up, they pick up two electrons and are trapped like normal hydrocarbons, except as helium. “How it mobilizes is unknown at this point,� Yurkowski said. In the area of Saskatchewan where helium has been developed, it is found in the Deadwood formation, directly above the basement, and 2,000

metres deep. The Deadwood, as a Cambrian Formation, is 541 to 485 million years old. When it was laid down, life on earth was evolving from primarily single-celled organisms to multi-cell organisms. In other words, it took roughly half a billion years for that helium to form and travel a few metres vertically beyond the basement and collect in a helium trap. X Page B8

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Saskatchewan used to produce helium, and could do so again W Page B7 “Your reservoir is right above the Precambrian, trapped under a silicified siltstone,� Yurkowski said. In some

intervals the Deadwood here has one to two per cent porosity. “It’s a fascinating play,� Yurkowski said, adding she is currently

looking at gas analysis in southwest Saskatchewan to see if other wells have the potential for helium. It takes one to two per cent helium concentra-

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tion to be of interest. The remaining 98 to 99 per cent is principally nitrogen, according to Sears. It is vented to atmosphere when the helium is produced. Sears explained that while the Cambrian sand of the Deadwood is porous, the cap rock above it certainly is not. “The cap rock has to be very tight,� he said. The helium molecule is so small, it will pass through most materials, he noted. Without the tight cap rock, it will simply pass through the stratigraphic column and enter the atmosphere. “Helium will escape

a stainless steel container,� he said, making storage problematic. The collection of helium draws heavily from oil and gas extraction in many ways. Virtually all helium is produced from natural gas extraction, he said. Weil Helium is seeking the gas as its primary target, not a secondary or tertiary product. The mindset on seeking helium as the primary target is different, according to Sears. One to two per cent may not seem like much to people who produce natural gas methane or crude oil, but that’s a high concentration compared to other resources. “Think of it like mining. I think that’s why most oil and gas people don’t get it. Look at gold. You eat up a lot of rock for one per cent of gold.� Because of the difficulties of storing it, helium is just-in-time inventory, Sears said. “You can’t really store helium. It doesn’t last that long.� “We will be producing gaseous helium first. It’s inexpensive and allows us to monetize it as it is being developed,� Sears said. They would need more than 3 BCF to justify a small liquefier to produce liquid helium. That would cost “tens of millions,� he said. Weil Helium has been active in the field this past year. They farmed-in on two wells in the Swift Current

area. “We tested a couple wells in Saskatchewan with positive results,� Sears said. Weather delays were an issue, and they had to remedy some wellbore problems. “They were shut-in wells, as helium wells,� he said. They were in remarkably good condition, having been drilled in the 1960s. “Frozen in time, essentially,� is how Sears described them. As an oil and gas man, he’s re-entered a lot of wells. Many go poorly, but these did not. A service rig was needed to retrieve mechanical plugs. The wells flowed naturally to the surface. The next step is to determine the company’s processing needs and to design accordingly, Sears said. “We hope to have something going by the end of the first quarter of 2014.� That might be a little ambitious, he acknowledged, as weather conditions can be an issue for access, getting heavy trucks in and out. The company is looking at drilling more wells in the future, and is also looking at Alberta. Montana is another prospect. “We’re not wildcatters,� Sears said. They have identified projects where inert gasses were identified and then shut in. “We have another project in northern Montana. We have lots of projects in the Rocky Mountains region,� Sears concluded.

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When the gas went out in Manitoba, CanGas Solutions and SaskEnergy came to the rescue „ By Brian Zinchuk Otterburn, Man. – A TransCanada pipeline blowout near Otterburn, Man. on Jan. 25 meant gas service was cut for about 4,000 natural gas customers, from homeowners to hospitals. It happened on a very cold Saturday and a storm was blowing in. The explosion happened on a 36-inch TransCanada line south of Winnipeg. It was part of the Emerson lateral. The explosion happened above ground at a valve site, according to Davis Sheremeta, TransCanada spokesman. The incident affected two other lines. One fed nine or 10 communities in south central Manitoba, and the other fed the Viking system in the northern United States. A week after the explosion, he noted they still did not have a cause yet, other than to say the RCMP did not believe foul play was involved. Short term repairs got the Viking system back online the following day, but Manitoba Hydro’s supply wasn’t restored until Jan. 28. It took time for the fire to go out, as gas was vented from the system. It finally went out at about 2 p.m., Central Standard Time.

When the lines went down, the outside temperature was -20 C with a -38 C wind chill. The weather was deteriorating, and Sheremeta noted they had to move people and equipment in “in extremely bad weather.� CanGas Solutions, a wholly-owned subsidiary of CanElson Drilling Inc., and SaskEnergy, were called upon to help Manitoba Hydro ensure those affected wouldn’t freeze. “We worked with Manitoba Hydro to truck in natural gas to serve community warming centres,� Sheremeta said. Dave Burdeniuk, director of media and government relations with SaskEnergy, said, “We have a mutual aid agreement with other utilities and pipeline companies.� They extended offers of assistance to TransCanada Pipelines and Manitoba Hydro, the local distributor affected. SaskEnergy offered a cascade trailer of compressed natural gas kept at their Weyburn refueling facility, as well as access to that facility. “We could do a fairly quick turnaround. We had a trailer in Weyburn ready to go.� CanGas had al-

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ready been mobilizing. “We sent ours Sunday afternoon. It was held up in Portage La Prairie,� Burdeniuk said. Highway 1 was closed, but once they explained the purpose of the truck, the RCMP gave an escort on another route to Winnipeg. By 5:30 a.m. they were set up at the Ste. Agathe station. Burdeniuk said on the SaskEnergy trailer, 19 of 37 bottles were used to supply the entire town of Ste. Agathe. They plugged into the system at the town’s regulator station. A second trailer would have been dispatched if needed, running in a loop from Weyburn. SaskEnergy also offered crews to go door-to-door, re-light customers’ appliances, but they were not needed. By Tuesday, Jan. 28, SaskEnergy’s trailer was no longer needed. CanGas’s involvement was more significant. They had trailers fill up at the CNG facility near Weyburn and haul it to south central Manitoba. X Page B10

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Ten CanGas CNG trucks hit the road W Page B9 Manitoba Hydro deployed CanGas assets to two hospitals, a seniors’ facility and a school. The Weyburn CNG loading facility was crucial because it could fill an entire semi in a small fraction of the 18 hours to fill that same semi in Regina or Saskatoon. Don Fraser with CanGas credited the hard work of three people in particular: Aodan Brown, Cimarron Prince and Chris Bamini for responding quickly to the crisis. Prince used to be a rig manager with CanElson Drilling and was featured in Pipeline News in October 2012, while Aodan Brown was featured in May 2013 installing natural gas/diesel bi-fuel systems in drilling rigs with CanGas. “We got called at noon on Saturday ( Jan. 25).

We were dispatched and on site at 8:30 that night,� he said. “The first call came from TransCanada Pipelines. “They worked through the entire night and the next day, hooking people up.� One person flew out, why others drove out high-rate decompression equipment. One engineer in Winnipeg was able to help in site selection. “We have at least 15 trailers. We deployed 10. “At the height of the thing, we had 10 truckers,� Fraser said, noting they pulled trucks off some of their rig work to respond. Some rigs were shut down at the time. All drilling rigs equipped to burn compressed natural gas are able to switch over to 100 per cent diesel. “It was stinking cold. It was not a good time, but bad things don’t happen at the best times. We were glad we could help out,� he said, adding Mani-

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toba Hydro was wonderful to work with. “We were feeding two hospitals, one nursing home and a warming centre. We could supply the all those towns, but the decision by Hydro was to supply critical areas,� he said. Industrial customers shutting down helped reduce demand. “Manitoba Hydro directed us where they wanted.� The ability to supplement natural gas systems during outages or maintenance is part of CanGas’ business strategy. “We do this kind of thing for pipeline outages on a normal basis. We’ve done similar stuff in Alberta,� he noted. Usually that sort of work involves one or two trailers, however. This was the largest outage they’ve worked on. “We were there until Wednesday ( Jan. 29),� Fraser said. “We were happy to be able to help out. This is not the first time utilities have helped each other out. Burdeniuk noted that three years ago, ATCO sent a trailer to a rural area near Prince Albert because they could get there faster than SaskEnergy’s own unit. In that case, no one lost service. In regards to Manitoba’s case, he said, “Instead of through a pipeline, we were sending gas on a highway in semis. He called it a “can-do attitude� and helping a neighbour. Sheremeta said, “We are reimbursing people for reasonable direct costs,� and that TransCanada was covering the costs. “We consider these people our friends and neighbours. It was our pipeline,� he said.

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Could drones be used for pipeline inspection? „ By Brian Zinchuk Regina – Could unmanned aerial vehicles, also known as UAVs or drones, one day be used for pipeline or power line inspection? Those are some of the possibilities researchers at the University of Regina are pursuing. Dr. Raman Paranjape and Dr. Mehran Mehrandezh are working on the use of small unmanned helicopters to do just that. Paranjape spoke to Pipeline News via Skype on Feb. 12. The researchers have just completed a three-year project in September 2013, and are continuing work in the field. Paranjape is a full professor at the University of Regina in the Faculty of Engineering, where he has spent the last 17 years. His specialty is electronic systems engineering. “I have done a number of projects in the oilpatch,� he said. One included using sonar to image VAPEX chambers created by solvent injection. That was done in conjunction with the Petroleum Technology Research Centre, or PTRC. “Another very cool project was we built something called the Regina Pipe Crawler,� he said. That’s a little robot used for inspecting the inside of pipes before they go out in the field to be assembled into pipelines. It shines a laser line on the walls of the pipe, looking for bad welds and slivers as part of a quality assurance inspection. But right now airport drones are getting a lot of attention, so much so that it surprised his wife, Paranjape noted. He and Mehrandezh are running the projects. He said, “At its peak, we had probably 10 students working on it.� The three-year project was funded by a Natural Sciences and Engineering Research

Council (NSERC) grant of $360,000 over three years. “At the end of that, we had a level of skill with a technology of photogrammetry,� he said. Photogrammetry is the science of taking measurements using photographs, in this case, aerial photographs taken from small UAV helicopters by measuring what its camera sees in its field of view. The prime example Paranjape cited was the usage by police to do accident scene reconstruction, taking measurements from the air to determine what happened. The RCMP has deployed UAVs throughout the province to assist in such investigations for the past few years now, as has the Saskatoon Police Service. Paranjape noted by knowing the length of police vehicles, that can be used to measure the distance between cars, fixed objects, skid marks and the like. Until the advent of these UAVS, the police would use survey equipment, including laser range finders, to do such measurements. That’s still used, but aerial photographs can assist in other ways. “It’s better in a couple of ways and worse in a couple of ways. You can measure everything from a flyover,�said Paranjape. If a certain measurement is missed when using the survey equipment, for instance, that could be ascertained from the aerial pictures. “This factors in all of a scene, as long as you can see it,� he said, adding photos may be taken 20 to 30 metres above the ground. Resolution is based on how high the camera is above the ground. “There are some trade-offs,� he said. There’s better accuracy with a laser rangefinder, but it takes longer. Us-

ing aerial photography can allow a scene to be cleared quicker. The technologies are complimentary. Since the NSERC project ended, they now has a small amount of funding from SGI, working with the RCMP, for further research. Beyond collision investigation The technology the U of R researchers is working on goes much further than simply flying above a car wreck and taking pictures, however. They are using the cameras on drones to allow those drones to interpret what they are seeing, in real time, and act upon it. The ability of robots to act independently by seeing, analyzing and then reacting to its environment has been one of the holy grails of artificial intelligence research ever since robots were first thought of. One of the sponsors of the NSERC grant was TransGas, the wholly-owned subsidiary of SaskEnergy which handles their transmission pipelines. They are interested in keeping an eye on their rights-of-way, watching for construction and the like that could pose potential threats. This is typically done today by having a human fly in an airplane over rights-of-

way on a regular basis. Paranjape said human observation is imprecise, inconsistent, and subject

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Paranjape says they can deal with such things, as the motion of the helicopter and the continual stream of changing pictures being processed allows them to identify such objects. “We’re taking sequential imaging from sequential movements,� he said. “We can identify the pose of the helicopter. It can operate without human interaction.� In demonstrations, they’ve shown how a small drone can follow a printed pattern held up on a sign, maintaining a certain distance and position in relation to it. “We can fly following objects. The UAV memorizes a certain pattern and, say, stayed 1.5 metres behind it,� he said. “There’s no reason why we couldn’t do facial recognition or track a license plate� Small drones could even be used to fly within buildings, doing hazardous inspections of places like nuclear facilities, for instance. Indeed, the day after the interview, CNN showed how a sinkhole in Kentucky swallowed eight precious Corvettes in the National Corvette Museum. In their footage, one could see how a small multi-rotor UAV was used to fly within the crater to inspect it. The satellite-based Global Positioning System is much less accurate than vision-based flight, he said, with an accuracy of plus or minus three to six metres. “My experience is it doesn’t work that well and is not available everywhere,� said Paranjape. They are also talking to SaskPower about the possibility of inspecting high-voltage transmission lines. This would involve flying very close to the wires and pylons, circling them and going up and down. Relatively long-range UAVs for power line or pipeline inspection would still be small, much smaller than a typical Cessna, for instance, but would likely require gas-operated motors. Most small UAVs, including the ones they are doing their research on, run on high-density lithium polymer batteries. Let’s use something cheaper Early on in the NSERC project, the researchers acquired a very expensive multi-rotor helicopter UAV. And like most remote control aircraft pilots and small UAV operators will tell you, with current technology, it’s not a matter of if you will crash, but when. They found that out the hard way. “We spent $45,000 on a fancy UAV. Unfortunately, it crashed and burned. So we went to Best Buy and bought AR Drones Parrots,� Paranjape said. Those multi-rotor birds are consumer-grade, and only cost a couple hundred dollars, making them essentially expendable. “We have two flying still. We’ve crashed and wrecked five,� he added. They’ve also used some of the hobby-versions of the Saskatoon-made Draganflyers. These are the toy models, not the ones used by the RCMP that cost as much as base model new pickup truck. One of the benefits of using the Parrot is that they were able to hack into the software development kit, or SDK. This allows for complete control of the drone and use of its sensors. Taking many pictures per second of power lines and rights-of-way would quickly fill many terabytes of hard drives. Additionally, would a human being then have to review all that footage? X Page B13

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W Page B12 To reduce the huge amount of data a UAV could collect in an eight-hour flight, for instance, it would need some pretty beefy computer processing power. Instead of capturing and then keeping every image recorded, it would need the ability to analyze it in flight, flag what’s important, and delete the rest. But how do you put that in a small UAV where every gram of payload affects how long it can stay in the air? The answer is harnessing the power of smartphones, according to Paranjape. The Android operating system, being open and free, in particular, would be a possibility. The smartphones, like some of Samsung’s offerings, are light, and don’t require much power. “The amount of information you get flying over with a regular helicopter or fixed-wing aircraft is too much and too fast. You do need a fairly significant amount of computing power,� he said. Challenges One problem with small UAVs, however, is that some birds really don’t like them, and are prone to attack the UAV. Asked about that, he said, “I’m not sure what to say about that. Possibly we could gen-

erate a high frequency signal. That’s a big issue I haven’t thought of at all.� Another hurdle is the regulatory environment. While consumers can and have used UAVs in all sorts of environments, doing so in any sort of commercial fashion is highly regulated, and requires a Special Flight Operating Certificate for Transport Canada. Under current rules a typical SFOC has stipulations are so restrictive as to virtually eliminate all commercial usage of drones within 100 metres or so of any occupied structure or vehicle, as well as people on the ground. These rules effectively ban most usages envisioned in built-up urban areas. Due to the explosive growth of their usage, Transport Canada has had a deluge of SFOC applications. Paranjape‘s research is looking more along the lines of what this technology can do in the future, however, and let the current regulatory issues be dealt with by others. “I do believe the future is going to involve UAVs in certain built-up areas,� he said, adding the rate of change in the technological field is very high. “It’s an exponential curve. Things will happen faster.�

The United States military has been at the forefront of drone usage, from tiny ones that fit in your hand to Global Hawk highaltitude planes the size of a Boeing 757. However, much of that knowledge is classified, and frankly, Paranjape doesn’t want his work stamped “top secret.� “I’m mainly interested in civilian applications,� he said, pointing to the monitoring of ageing infrastructure like power grids. “I’m not very keen on the military,� he said, noting that can place limitations on publication. He would rather train bright young students to make this into technology farmers will use. When it comes to completely autonomous vision-based flying, he said a couple of other labs are doing it, but not many that are in the non-military domain.

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Drone saved a man’s life: RCMP „ By Brian Zinchuk Saskatoon – One of the most dramatic recent examples of the utility of unmanned aerial vehicles in civilian usage was the RCMP’s discovery of a man missing in a field last May. The episode made national headlines, and was again revisited when Cpl. Doug Green, the RCMP member flying the UAV, or drone, was invited on the Katie Couric Show on Jan. 21 on NBC. The 33-year veteran of the Mounties spoke to Pipeline News via phone on Jan. 28. His current posting is as a forensic collision reconstructionist with the Saskatoon detachment. His primary job is to figure out how vehicle collisions happened. In recent years, RCMP collision reconstructionists have added a new tool to their kit – UAVs. They provide an eye in the sky. “We have six units – three Draganflyer X4-ES and three Squads,� Green said.

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The Draganflyer is made in Saskatoon by Draganfly Innovations Inc., while the Squad is made by Chaos Choppers in Swift Current. Both have been selling into the law enforcement market. Each of the six full-time RCMP collision reconstructionists in Saskatchewan now have one. That includes Estevan, Saskatoon, Yorkton, Regina, Lanigan and Swift Current. “I’ve flown both,� said Green, who operates a Draganflyer. “We started working with these in 2010,� he said. That fall a Draganflyer X6 was purchased. The following February additional members were trained in their operation as part of a pilot project for Canada. They tested seven different models, looking at capabilities like the ability to fly in a wind. That’s what made the difference for the X4-ES versus the X6, for instance. The X6 could only handle a maximum 20 kilometre per hour wind, while an X4-ES can go up in 25 to 32 kilometres per hour wind. In pushing those limits, he explained, “It comes down to how comfortable you are flying in the wind.� X Page B15

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707,305, 5,>: 4HYJO W Page B14 “Our primary function is aerial photography of crash scenes,� he said. The UAVs are also used on major crime scenes like assaults or murders. They’ve also provided overwatch for operations by the Emergency Response Team, the RCMP’s version of a SWAT team. Green noted their flight operations have to comply with their own policies and Transport Canada’s. That includes having a special flight operating certificate. It stipulates things like altitude restrictions, not flying over crowds and only flying where you can see the aircraft at all times. That means no higher than 500 feet during the day and 175 feet at night. That would come into play on May 9, 2013, the day Green’s drone would play a part in saving a life. “We got a call at 12:30 in the morning,� he said. The call was for a vehicle rolled in the ditch near St. Denis, east of Saskatoon. There was a vehicle, but no driver or occupants. “They determined that there had been some injury, but they couldn’t locate the driver,� he said. Saskatoon RCMP, Prudhomme Fire Department and MD Ambulance responded. The hunt was on, and time was running out. STARS air ambulance was dispatched, searching with night vision goggles. Green was called out at 1:24 a.m. and got there just before 2 a.m. STARS was already in the air. The missing 26-year-old man’s cell number was located and called,

and his location tracked by pinging the phone’s built-in GPS. He had already wandered two miles south of the crash. “He was disoriented, he was cold. He had just a T-shirt and no shoes,� Green said of the phone call. The shoes had been left in the vehicle. Green and STARS started to search the new area, with the Mountie in contact with the helicopter via telephone. He told them was going to deploy the UAV, so the helicopter would have to be aware of its presence and fly a little higher so they wouldn’t collide. The maximum height he could fly was 175 feet, yet that higher perspective was key. “We put the UAV in the air and started to do a yaw (rotation). We saw three heat signatures in that general area.� The UAV is equipped with a FLIR – forward looking infrared camera – transmitting to a screen on the controller. It is a very pricey addition to the UAV whose base price is already around $25,000. However, it is key for night and search and rescue operations, because heat sources, like a warm body, leap out at you on the screen. Of those three heat signatures, one was 250 metres to the north, around a bluff. Green was able to track the firefighters walking to it, and directed them left or right. When they were ten feet away, the UAV signalled its battery was running low, and it had to land right

away. “They radioed, ‘We have him,’� Green said, noting it was pretty exciting they had found him. “He was in the latter stages of hypothermia when we found him,� Green told Couric. “We figured in another two hours, he would have succumbed to his injuries and the cold.� Prompt response is key, he noted. “I’ve been called to other (searches) since, but a day later,� he said. “My understanding is this is the first UAV rescue in the world.� That likely excludes military usage of UAVs. That’s what got the attention of the Katie Couric Show, whose Jan. 21 edition focused on “life changing drones and ghost hunters.� They contacted Green and flew him down

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to New York for the live show at their expense. Green noted many hoops had to be jumped through in short order to make it happen. “I thought we got a lot of good coverage for what we use them for. We’re using them for good,� he said. Drones are cutting edge, especially compared to when he first became a Mountie. “We didn’t even have batons,� he said, never mind pepper spray or computers in every car. Green doesn’t expect to see drones in general policing usage, but rather for specialized purposes. In one case, it was used for overwatch during a meth lab investigation in Strasbourg. “Having the UAV as part of our kit is nice. If we can use it, we will use it,� Green said. That is, of course, weather depending.

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Estevan – The Estevan Oilfield Technical Society will host its 55th Annual Open Bonspiel March 27 to 30. Entries are limited to 64 rinks, with entry fees at $320 per rink. A banquet will be held at the Beefeater Plaza on Friday, March 28, with cocktails at 6 p.m., the banquet at 7 p.m. and live band to follow. The group is 10 Mile High, from the Oxbow area. Most of the band members work in the oilpatch. The banquet will also feature the OTS lifetime achievement award presentation. Tony Sernick of the OTS noted this is the second year women have been allowed to play. Last year there was some confusion as to how that worked, but he clarified, “It’s open to all oilfield personnel.� That means women can be one, two, three, or even all four players on a team, if so desired. “It’s completely open,� he said. Online registration can be found at www.estevanots.com.

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6ZLIW &XUUHQW EDVHG 8$9 PDNHU DERXW WR WDNH RII „ By Brian Zinchuk Swift Current – When he got off the plane, you could probably say Monty Allan of Swift Current was flying high. That’s because the man who had been making drones for police agencies for the last several years on his farm as a one-man shop, the very definition of a cottage industry, had just returned from Asia on Jan. 29. With financial backing from the U.S., he had just signed on with a factory in Asia to build his unmanned aerial vehicles. Soon, Instead of one person putting together these drones, there would be 450. Allan, who is now 27, first got into model aircraft when he was 16. He bought one, built it, and promptly crashed it. It wasn’t until 2008 when he got into it. When he did, it was with a gusto. “I’m a grain farmer,� he said. They

got out of cattle five years ago, selling off 120 head. Allan lives on a hobby farm of 1,500 acres 10 minutes northwest of Swift Current. That’s where Chaos Choppers is based, and he likes it that way. There’s no walk-in traffic these days. If you want to see the product, it’s usually by appointment. The remote location also allows for plenty of room for product testing. For some products destined for military application, prying eyes are most definitely not welcome. “That’s kind of the point. I don’t want tire kickers,� Allan said. “All along, my brother and I had a bug for flying. Growing up, we never had airplanes, but I always wanted one.� These days Allan does have some ultralights – powered parachutes – for personal use. “I used to clean up train derailments for salvage. I sub-contracted

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for CN mainly. I started doing that in high school. I was gone way more than I was ever home,� Allan said. UAVs are now his main gig. The Hobby Shop was opened in 2008. He started building drones, and demand took off, as it were. Now he’s got a six-figure CNC lathe and a milling machine. “I had no choice. I had too many orders, you could never keep up by hand,� he said of his lathe. Until now, all Chaos Choppers have been made by one person – Allan. He’s spent a lot of time working with aluminum and carbon fibre. “Right now I supply Canada. By March 31, we’ll be on a global basis. I got back from Asia last night,� he said. He was in the U.S. the week before, lining up contacts and investors. “We’re looking at hundreds of these (produced) a day. Our focus is not just UAVs, but the hobby market,� said Allan. The intense action taking place has everything to do with striking while the iron is hot. Not only are we seeing daily stories in the news about drones, such as last November when Amazon announced plans to use them for product delivery, but a major player in the market has hit a snag. DJI, maker of the Phantom line of small, hobby-model drones, is embroiled in litigation between its Chinese makers and North American distribution system. The CEO of DJI North America LLC’s operations on this continent, Colin Guinn, was awarded an temporary injunction on Jan. 22 in a Texas court ordering DJI Innovations Hong Kong operation to stop shipping to its network of 31 dealers in U. S and Canada. DJI is still shipping product into North

America, but the lawsuit threw a monkey wrench into their business. The case doesn’t go to court until Aug. 11, 2014. The reason this is important is that DJI’s Phantom was one of the first affordable, capable units that didn’t require extensive assembly or know-how about radio control aircraft. A few minutes after taking it out of the box, a novice can have it in the air. That’s a market Chaos is now going to target, one that he noted is dominated by DJI. The goal is to have a hobby-model ready by Mar. 31. With the new factory lined up, Allan will be stepping back from producing units himself. “I’m going to be making everything in Asia,� he said. It will be a joint venture with “huge U.S. companies,� he said. Models Currently Chaos has several models – the M4 (for four rotors), Squad (Six rotors), Squad 8 Ball (eight rotors), Sprayer and Tank. There’s also a military unit, but Allan doesn’t say too much about it. “They don’t want to say whose buying and where it’s going,� he said. So far, purchasers have been subcontractors. It has not seen action in Iraq or Afghanistan. The Sprayer was one of the first units. It weighs approximately 40 pounds and can take up five litres of agricultural spray. The spray boom is 15 feet wide. It is used for precision application, such as mosquito spraying it tight quarters. Since there’s a lot of regulation and paperwork when it comes to agricultural spraying in Canada, these are primarily meant for overseas use, where they can be found flying over rice paddies. X Page B23

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707,305, 5,>: 4HYJO W Page B22 The M4 is the smallest unit. It is capable of carrying a Sony NEX7 camera, a 24.3 megapixel unit with interchangeable lenses an excellent image quality. With a NEX 7 on board, it can stay in the air for about half an hour. The six-rotor Squad sees most of its usage with police forces. In Saskatchewan, three RCMP forensic collision reconstructionists are kitted out with Squads, while another three use a competitor’s product, the Saskatoonbuilt Draganfly X4-ES. The RCMP also has Draganflies deployed with other units in Saskatchewan. The Squad is a beefy unit as far as small multi-rotor drones go. It can carry a full-fledged Canon digital SLR camera. Alternatively it can carry a thermal imaging camera, also known as a FLIR (forward looking infrared). The Squad can carry a spotlight in addition to its camera, assisting in nighttime operations and pursuits. The spotlight itself weighs more than the competition’s aircraft, he noted. An eight-rotor unit can take up much heavier cameras like the Red Epic. Those cameras are used in Hollywood blockbuster movies. Such a UAV can be up and filming in seconds, whereas it can take half an hour to pre-flight and warm-up a fullsized helicopter for aerial work. “If you’re doing movie shoots at

exploded ordinance such as IEDs (improvised explosive devises). It’s still in development, but is projected to weight about 150 pounds, be two feet long and 18 inches wide. They are meant to be expendable. While its price might be comparable to a subcompact car, in military terms, it’s pocket change. The Canadian military’s M777 artillery piece can fire shells that each cost the same as a Camaro. Up until now, Allan’s focus has been on law enforcement. However, several units are used in the oilpatch, used for environmental work and inspections. Included on the Chaos website are photos of flarestack inspections, for instance.

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With 3G and LTE cellular networks, in addition to real-time downlinks from a drone, he noted that they can stream a video field of a pipeline project, for example, from the field to an office. “We can launch the UAV and the boss in Calgary can watch what is going on,� Allan said. “We can take a photo or stream live off the bird, almost anywhere in Saskatchewan or Alberta.� The GPS-guided navigation systems are so advanced now, he said, “You don’t even have to pilot it. Push a button.� A ground control station can instruct the UAV to fly a waypoint pattern and then return.

DŽŜƚLJ ĹŻĹŻÄ‚Ĺś Ç Ä‚Ć? Ä‚ ŽŜÄžͲžÄ‚Ĺś ÄšĆŒŽŜÄž Ć?ŚŽƉ͕ Ä?ƾƚ ŜŽ ůŽŜĹ?ÄžĆŒÍ˜ WŚŽƚŽ Ć?ĆľÄ?ĹľĹ?ƊĞĚ $2,000 an hour, it’s a cakewalk,â€? he said. “A friend in Russia is shooting a movie that’s phenomenal.â€? Also, a UAV isn’t going to blow over the set with its downdraft. The intense downdraft from a conventional helicopter can also be a concern with disturbing crime scenes, he noted. One unit, known as the Tank, doesn’t fly at all. It’s a ground unit, on tracks that is meant for detecting un-

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Nicholson at age 17,â€? Piper said. Nicholson had a similar operation prior to retiring. Laura grew up in the back seat of a plane, Piper noted, whereas he came to flying a little later in life, getting his pilot’s licence in 1999 at age 30. “I pipelined for years before that,â€? he said. He’s worked as a directional boring ^Ä?ŽƊ ĂŜĚ >Ä‚ĆľĆŒÄ‚ WĹ?Ć‰ÄžĆŒ Ĺ˝Ç Ĺś ĂŜĚ Ĺ˝Ć‰ÄžĆŒÄ‚ĆšÄž ůƾĞ ^ŏLJ Ĺ?ĆŒÍ˜ ^Ä?ŽƊ specialist, run excavator, ĹšÄžĆŒÄžÍ• Ä?Ä‚Ĺś Ä?Äž Ć?ĞĞŜ Ĺ?Ĺś ƚŚĞ Ä?Ĺ˝Ä?ŏƉĹ?Ćš ŽĨ ŽŜÄž ŽĨ ƚŚĞĹ?ĆŒ WĹ?Ć‰ÄžĆŒ WÄ‚Ͳ sideboom, dozer, and a Ď­ĎŽ Ä‚Ĺ?ĆŒĆ‰ĹŻÄ‚ĹśÄžĆ?͘ WŚŽƚŽ Ä?LJ ĆŒĹ?Ä‚Ĺś Ĺ?ĹśÄ?Ĺšƾŏ little bit of grader and buggy to boot. “That’s helped me oilfields, keeping a sharp „ By Brian Zinchuk infinitely with knoweye out for anything ing what’s going on on unusual. Estevan – One of the ground. I worked The company has the most important a good ten years offaspects of ensuring spills long roots in Estevan, as and-on pipelining and Scott Piper explained on get caught before they working throughout the Feb. 5 in their hangar 10 get out of hand is to patch.â€? miles north of Estevan. keep an eye on them – “When I met “We bought this comliterally, an eye in the Laura, she was already pany from her parents in sky. a pilot working for her 2005. This is its 32 year,â€? That’s what Blue dad,â€? Piper said. he said. Sky Air Ltd., owned by Joining the famThe company was Laura and Scott Piper, ily business was Scott’s run by Nat and Joyce does. They fly daily chance to get out of Ooms, Laura’s parents. patrols over pipeline seasonal construction. “Nat worked for Ken rights-of-way and

was one of numerous British Commonwealth Air Training Plan bases built across the prairies during the Second World War. “It’s a spill pile now,� Piper said, noting the area has since been mined. Nat had managed that airport. He moved is operation to his own strip one mile

west of the old airport. He ran the Estevan Airport of about a year before building another strip south of the mines, but it, too, will eventually be mined. Thus, in recent years they’ve moved north of the city, and north of the city-operated Estevan airport, too. X Page B26

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0RQLWRULQJ SLSHOLQHV DQG RLOĂ€HOGV IURP WKH DLU W Page B25 “We bought the land in 2005, started the runway and planted trees. In February 2006 we had the house built and moved here,â€? he said. It took about a month to build the runway, and a year for the grass to catch. Having your own private strip, hangar and fueling facilities means total independence, as opposed to using a municipal facility. “We have total control of the runways and we don’t have to wait for someone to fuel us, clear the runway or anything,â€? said Piper. “If we don’t get a plane out, it’s my fault,â€? he said. “We take the variable out that is someone else.â€? He added they have good relations with the current management of the Estevan Airport, whose manager worked for them for six years. Another issue is fuel. They now have two large fuelling tanks. When you buy fuel by the tanker truck, you can get a better price. “It’s a cost savings for my customers. I’m able to offer my service at the best rate possible. We just upgraded our fuel service to take full semi-loads, 75,000 litres, at a time. “I actually set (the tank) on two pumpjack sleepers.â€? Once the landing strip was in place, they built the cold part of the hangar first, and then added the heated portion, with offices, a year

later. “In 2008, the airplanes came here,� he said. Lots of maintenance skill For a small company, with 4 people plus ownership, they have a very high number of aircraft maintenance engineers, or AMEs. “Laura and I are each commercial pilots as well as a licensed AMEs. She has an interprovincial journeyman certificate. She and I went to school for that together. We did four years of training at Stevenson Aviation, part of Red River College, Portage La Prairie,� Piper said. Of their four employees, one is a dedicated mechanic, one pilot is a journeyman. “We have five journeymen, including Nat, on staff,� he said. With a young family, Laura doesn’t do as much flying any more. “She runs the books, and pretty much anything involving paper ends up on her desk,� Piper said. Their certification through Transport Canada allows Blue Sky Air to do pipeline inspection, aerial photography, spraying and the like, or as Piper put it, “anything without passengers.� The Pipers fly Pipers The airplanes are all Piper PA12, originally built in 1946 and ’47. “They only made them for two years, post-war,� he said. “They were designed and built

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dĹšĹ?Ć? ůĞĂŏĹ?ĹśĹ? Ç ÄžĹŻĹŻĹšÄžÄ‚Äš Ç Ä‚Ć? Ć?ƉŽƊĞĚ ĨĆŒŽž ƚŚĞ Ä‚Ĺ?ĆŒÍ˜ WŚŽƚŽ Ä?ŽƾĆŒĆšÄžĆ?LJ ůƾĞ ^ŏLJ Ĺ?ĆŒ for the post-war aviation boom they thought was going to happen but never did.â€? The planes are stick-and-rudder affairs, with controls more light that of a fighter plane than the yokes seen on most general aviation aircraft. The airframe is a truss construction, covered with fabric. They have one new airframe in a shipping container. “We’re building another,â€? he said. “It’ll replace one that’s aging. One might think the planes are nearly 70 years old, but you’d be mistaken. “Everything’s new, the only thing you can’t buy is the strip between the windows on the left hand window,â€? Piper said. Indeed, only one airframe is left from Nat’s era, he noted. “I own six PA-12s now. To my knowledge, that’s more than anyone else in North America, but I don’t know for sure. I’m kind of a buff for Pipers. That’s my name,â€? he said. Their oldest son is named after the founder of Piper Aircraft. In addition to a control stick,

which Piper says is “way nicer to fly,� the PA-12 has other benefits that make it suitable to aerial pipeline inspection. One is the high wing, meaning the pilot’s view is not obstructed. Also, it’s tandem seating, meaning that the pilot has a window adjacent to him or her on both sides. In a side-by-side arrangement, the co-pilot’s seat obscures a large field of view. Piper said, “They have great visibility. They’re very maneuverable. They can take off and land just about anywhere, and parts are available.� All are taildraggers, or “conventional landing gear.� It’s gone out of vogue now, with most planes now having “tricycle landing gear,� but taildraggers have the added advantage of being able to land just about anywhere, including rough surfaces. Nearly all Second World War airplanes were taildraggers. The Pipers’ Pipers have large tires like balloons that help in that regard. Eye on the ground Piper said, “99.9 per cent of our business is pipeline inspection.� X Page B27

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707,305, 5,>: 4HYJO W Page B26 They work for about 16 different clients. The walls of the office are festooned with maps of right-of-way, looking like giant spider webs hundreds of kilometres across. The area covered is from Regina to Oak Lake, Manitoba, and everything south to the U.S. border. With recent pipeline expansion to Rocanville, they fly that way now, too. The frequency of flights depends on the clients. Enbridge, for instance, is once a week. Some producing companies are twice a week. Another is every second week, but considering moving up to a weekly schedule. Flight operations are done Monday to Thursday, with Friday as their make-up day if weather or some other issue precludes flights on other days of the week. Otherwise Friday is dedicated to maintenance, such that a weekend is truly a weekend off in most cases. However, they are still on call seven days a week, so that if pressure is lost on a pipeline, for instance, they will send a plane up to take a look. Piper said, “Most companies are pro-active. If they think there’s a leak, they call the plane. It’s a lot cheaper, and more responsible, to call the plane then to risk having a leak undetected. “When there is a problem, we can help the come up with an action plan to control it.� So what do they look for? “No. 1, we’re looking for leaks. Usually there’s dead vegetation, smell, or visual (indications). Oil will take the path of least resistance. It bubbles out

like the Beverly Hillbillies. “We don’t fly a lot of gas lines. With gas, you can smell that from the plane,� he said. “I’ve found a lot of leaks by smell.� Remarkably, a smell is detectable even in a moving airplane. Once picked up, they will find the prevailing wind and start to circle. Piper said they often detect leaks from other producers. “We contact whoever we are working for at the time. A lot of times, I’ll smell gas, and they’re cleaning a tank. The flights leave in the morning after sunrise and typically run six to seven hours. Pilots eat in the planes, and typically do not touch down during that time. “All flights come back here every night,� he said. Blue Sky Air has a competitor in Weyburn, and another in Deloraine, Man., but they have the lion’s share of the work in southeast Saskatchewan and southwest Manitoba. That includes flights over the Enbridge Saskatchewan gathering system, which Piper says is unique. It’s not just pipelines, they’re looking for. Piper pulled out his cellphone and showed a picture emailed to him earlier in the day from one of their pilots. A pumpjack had a packing leak that morning, and black oil could be seen on the lease. When flying individual pipeline rights-of-way, they will follow the pipe, watching a 30 metre wide right-of-way. But in some fields, like the Weyburn unit, there’s simply too

much there to follow individual pipes. Instead, they fly a grid pattern spaced at half-mile intervals, covering the whole field. “Cenovus has lines everywhere, so we fly a grid,� he said. Generally they keep between 100 and 200 feet, and specifically avoid flying over farmyards. Global positioning systems might be commonplace in aviation navigation now, but that’s not how Blue Sky Air operates. “When I train a pilot to do this job, it’s visual only. I don’t want guys flying, looking at a screen. You don’t see leaks on a screen.� Yet they do have GPS units on their planes, but one you wouldn’t expect. It’s the same type of fleet-

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monitoring system now commonplace on trucking fleets. “I can watch my plane on this screen. I can tell how fast they’re going, and what direction,� he said. It also provides and electronic paper trail proving that lines have been overflown. “I can grab a data file and show them,� he said. None of the planes are instrument rated, but they do have aviation GPS as well. While watching the ground, they also have to keep an eye out for other low-flying aircraft, like spray planes. And where you have oil, you have seismic helicopters looking for it. X Page B28

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)O\LQJ SODQHV ZHOO VXLWHG WR WKH WDVN W Page B27 Asked if drones might someday replace visual inspections by a human being in the air, he said. “I wouldn’t say they can’t do the job. Probably, eventually, drones will take over. The technology is there, it’s just not feasible yet. Someday, it may be, when robots rule the world. I’m not worried about it right now.� As for getting into drones themselves, he said, “If it’s feasible for me to get into it, by all means. The problem I’m seeing is the transition. What will keep your drone from flying into my airplane? Amazon wants to do delivery by drone in 19 minutes within pressing ‘buy it now,’� he said. An important thing is to have 360 degree awareness of what is going on. A drone can only detect what it’s cameras or sensors are pointed at. Piper said, “You can’t teach a machine to have situational awareness yet.�

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)RUPHU YDF WUXFN ZRUNHU QRZ Ă LHV SLSHOLQH SDWURO Estevan – Phil Daku is 38, but he’s just started his flying career, despite spending a good chunk of his life around planes. “It’s my first flying job. I’m 38. Before this, I was an aircraft refueler,â€? said the pilot with Estevan-based Blue Sky Air. Daku is one of a handful of pilots who spends an average of six or seven hours a day flying low over pipeline rights-of-way and oilfields, looking for anything amiss. “I’m the rookie,â€? he said. He spent five years as an aircraft refueler prior to joining Blue Sky in 2013. Before that, he worked on vac trucks in the oilfield from 2005 to 2008, and spent his springs hauling anhydrous ammonia. “I’m such a Gypsy,â€?

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said Daku, noting he’s also worked in construction in Calgary and at a sawmill in British Columbia. “I finished my commercial licence in 2000 and my private pilot’s licence in 1996,� he added. “In high school I worked at Kelowna Flightcraft as an aircraft groomer. “I didn’t pursue it for family reasons. In 2003, I hired on with Dene Northern Airways. I worked for them for a year, but they sold out and scaled back.� When his marriage

ended, Daku decided to give flying a go. “I’ve got a good job. There’s no passengers,� he said. “It’s good, fundamental flying.� At Blue Sky Air he gets about 65 hours of flight time a month. For pilots, flight hours are everything. “That’s pretty high,� he said, adding he has 850 hours total flight time. Daku’s parents were missionaries in Brazil, and he grew up there from ages 5 to 14. He got the flying bug from the trips back and forth to Canada.

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:H\EXUQ $LUSRUW DGGLQJ *36 DSSURDFKHV „ By Brian Zinchuk Weyburn – If you are flying into Weyburn Airport right now and need to rely on your instruments, the technology in place to guide you hasn’t changed much since the airport was used as a British Commonwealth Air Training Plan base to train pilots for service in the Second World War. But that will change soon, as the airport moves further into this century. The Weyburn Airport is getting ready for adoption of Global Positioning System (GPS)-guided approaches. It allows pilots to follow cues on their screen &ŽƾĆŒ ŽĨ ƚŚĞ ƉĞŽƉůĞ Ç ĹšĹ˝ Ä‚ĆŒÄž Ĺ?ŜǀŽůǀĞĚ Ç Ĺ?ƚŚ ƚŚĞ ĆŒƾŜŜĹ?ĹśĹ? ŽĨ ƚŚĞ tĞLJÄ?ĆľĆŒĹś Ĺ?ĆŒĆ‰Ĺ˝ĆŒĆš Ä‚ĆŒÄžÍ• ĨĆŒŽž that will put them precisely on the runway, following a virtual path in the sky. ĹŻÄžĹŒÍ• ZĂŜĚLJ DÄ‚ĆŒĆ&#x;ĹśĆ?ŽŜÍ• Ä?Ĺ˝Ä‚ĆŒÄš žĞžÄ?ÄžĆŒÍ– ĂŜĚ Ĺ?Ä?ĹŹ DĹ?Ä?ŚĞů͕ tĞLJÄ?ĆľĆŒĹś Ä?Ĺ?ƚLJ Ä?ŽƾŜÄ?Ĺ?ĹŻĹŻĹ˝ĆŒ ĂŜĚ The new system is not a transponder on the ground. There will no longer be Ä?ŚĂĹ?ĆŒĹľÄ‚Ĺś ŽĨ ƚŚĞ Ä‚Ĺ?ĆŒĆ‰Ĺ˝ĆŒĆš Ä?Ĺ˝Ä‚ĆŒÄšÍ• :Ğč &Ä‚ĆŒĆŒ ĂŜĚ ÄžŜŜĹ?Ć? DÄ‚Ĺ?ĹśĹ?ĹŻÍ• Ä?ŽͲžÄ‚ŜĂĹ?ÄžĆŒĆ? ŽĨ ƚŚĞ Ä‚Ĺ?ĆŒĆ‰Ĺ˝ĆŒĆšÍ˜ a beacon going “Beep beep beep.â€? Rather, it will be a pathway that is loaded into ĹŻĹŻ Ä‚ĆŒÄž Ç€ŽůƾŜĆšÄžÄžĆŒĆ?͘ each plane and pilot’s independent GPS systems when they update their GPS. It’s hoped that the new GPS approach will be in place this spring, subject to approval by NAV Canada. That’s a big deal for an airport whose lifeblood is oilfield traffic, according to the people who administer the Weyburn Airport. On Feb. 11, Pipeline News sat down with Jeff Farr and Dennis Mainil, co-managers of the airport; Randy Martinson, board member; and Dick Michel, Weyburn city councillor and chairman of the airport board. All are volunteers. They see the GPS guidance as a major draw for corporate flights. Farr, who operates Farr Air, an agricultural spraying operation, and Mainil, a private pilot and general manager of Jerry Mainil Ltd., took over management duties after long time airport manager Tom Kerr passed away in 2013. They all spoke very highly of Kerr, who would be at the airport “7 to 7, seven days a week.â€? He kept highly detailed records of the comings and goings, and there are an awful lot of oilfield-related comings and goings. Michel pointed out that, according to Kerr’s records, in 2011 there were 808 aircraft “movements,â€? of which 302 were oilfield-related. In 2012, there were 664 movements, of which 241 were oilfield-related. A movement is defined as one aircraft coming and going into that airport in a 24-hour period. If a crop-duster makes 10 takeoffs and landings within a &XUWLV 1HLV]QHU 24-hour period, it’s still one movement. But if a corporate charter comes in from 93 2SHUDWLRQV :H\EXUQ 6DVNDWFKHZDQ Calgary and lands in the morning, taking off later that evening, it is also one movement. X Page B31 QHLV]QHU UHDUGHQ#VDVNWHO QHW

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Jet fuel please Other improvements are also underway at Weyburn Airport. Recently, a 24-hour cardock system was installed for aviation gas. However, that doesn’t help larger corporate aircraft that run on jet fuel, so that’s high on the agenda for a future addition. Currently a plane running on jet fuel, if it doesn’t have enough fuel to fly back to Calgary, for instance, has to do a short hop to Regina to fuel up after having discharged its passengers in Weyburn. Having jet fuel on site will eliminate that hassle and expense. X Page B32

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screen shows you which way to go,â€? Farr said. Estevan, Regina and even Carlyle have GPS approaches, they noted. The accuracy of a handheld GPS in a hunting store might be 30 to 100 feet. That might be okay for marking where you shot a moose or hooked a trout, but in aviation, 100 feet will put you in the grass on the side of the runway, or into the runway if your vertical position is out. Aviation GPS systems are much more precise, and the GPS approach system is mapped out to an accuracy of 10 feet using the Wide Area Augmentation System (WAAS). &Ä‚ĆŒĆŒ Ĺ?ĆŒ ŚĂĆ? Ć?ŽžÄž ŽĨ ƚŚĞ ĹśÄžÇ ÄžĆ?Ćš ĨÄ‚Ä?Ĺ?ĹŻĹ?Ć&#x; ÄžĆ? Ä‚Ćš ƚŚĞ tĞLJÄ?ĆľĆŒĹś Mainil noted that very few of today’s aircraft Ĺ?ĆŒĆ‰Ĺ˝ĆŒĆšÍ˜ KÇ ĹśÄžĆŒ :Ğč &Ä‚ĆŒĆŒ Ĺ?Ć? Ä‚ Ä?ŽͲžÄ‚ŜĂĹ?ÄžĆŒ ŽĨ ƚŚĞ Ä‚Ĺ?ĆŒĆ‰Ĺ˝ĆŒĆšÍ• Ä‚ don’t have a GPS. If it’s not built into the plane, Ç€ŽůƾŜĆšÄžÄžĆŒ ĹŠĹ˝Ä? ŚĞ Ć?ĹšÄ‚ĆŒÄžĆ? Ç Ĺ?ƚŚ ÄžŜŜĹ?Ć? DÄ‚Ĺ?ĹśĹ?ĹŻÍ˜ many pilots will have a portable system that will Photo by Brian Zinchuk mount on the control column or dash. “Before GPS, (other guidance systems) were W Page B30 “We’ve applied to NAV Canada to get GPS ap- Automatic Direction Finding and VOR radios. With the existing non-directional beacon, the proaches put int. It’ll make it a lot safer for planes cloud ceiling can be no lower than 500 feet when to get into Weyburn,â€? Farr said. “We had an NDB, landing. With the GPS system, that will decrease non-directional beacon approach.â€? to 350 feet. That opens up the airport to usage by Mainil explained an NDB basically puts out a business flights in less than favourable conditions. homing single that causes an instrument on your One of the trends in recent years has been the cockpit dashboard to point to. If the arrow spun shift of oil company field offices from Estevan to around, that means you flew over it. It is not nearly Weyburn. Crescent Point Energy and Enerplus are as complex as an instrument landing system, or just two examples. One of the reasons for this has ILS, that puts out a directional glide slope signal, been Weyburn’s proximity to Regina. Executives indicating to a plane if it is coming in too high, could fly from Calgary to Regina in the morntoo low, or too far to the right or left. Airplanes ing, drive to Weyburn, have their meetings, and need to follow a “glide slope,â€? a path in the air that then drive back to Regina and fly home to Calgary will align them on the runway and put the landing gear on the runway and not in a field beside it or at within the same day. Estevan was just a little too far to easily accomplish that in one day. either end. Mainil noted that with the airport improveThe GPS essentially maps out the approach ments, “We want to be the first stop, not the second path in the computer, and displays it on the screen. stop.â€? The system shows the “approach glide slope,â€? on In other words, they’re aiming to cut out the the screen. If the pilot keeps on the glide slope, they need to fly to Regina if you’re flying in your own should touch down perfectly. aircraft or on a charter flight, as opposed to a com“It shows waypoints in the air, and they’re all mercial flight. labelled. The approach glide slope on the GPS

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Over one-third of Weyburn Airport PRYHPHQWV DUH RLOĂ€ HOG UHODWHG Some old hangars at the Weyburn airport are worse for wear.

Éş Page B31 “Our next step is getting into jet fuel,â€? Michel said. Estevan has jet fuel available. “We need that. We need jet fuel,â€? Farr said. “It’s a lot easier to go to Estevan if you don’t (have it in Weyburn).â€? Currently there are 22 hangars on the site. Unlike Estevan, for instance, which has a large common hangar and several private hangars, Weyburn’s are all privately held. Some are new, like Farr’s, but others are in need of renovation by bulldozer, so the airport board is moving towards demolition of some of the eyesores. The airport itself is in the Rural Municipality of Weyburn, but is operated by the city. “It’s leased land, and we’re going to clean it up,â€? Michel said. The process

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will be similar to when towns order the demolition of derelict buildings. “We’re working on it.� Indeed, cleanup, including grass cutting and the like, is primarily a volunteer affair. Like most municipal airports in Western Canada, the Weyburn Airport was inherited from the military when the war was over, run by the federal government for decades, and then offloaded to the local municipality. Asked about whether having such a large facility that was built 70 years ago is a plus or a minus, Martinson noted there is a lot of maintenance. “Frost is hard on runways,� he said. Farr said if it was being built from scratch today, “You wouldn’t start today with two runways and a bunch of taxiways.� Improved signage is also in the works. The city recently made an arrangement with the RM to have its graders, based at North Weyburn, the small hamlet that once was the Second World War base, clean the runways when it snows. That spares the city the time and expense of having graders run several miles out of town “blade up.� “The RM is helping us with snow removal. It’s been tremendous. We thank them for that,� Michel said. Last year saw a tabletop emergency response plan session followed by a mock disaster in September. All the local emergency services took part as well as city workers. “That was very interesting for me. It was an eye-opener,� Michel said. He added that agricultural usage is also important to the airport, citing Farr’s operation. Farr explained, “We run four spray plays and service agriculture out of here. We used to fly out of our farm. It’s a good place to set up our business.� Aerial spraying has gone from responding to panicked calls from farmers about insects to being one of the most used tools in the farmers’ toolbox. Spraying now runs from early June until the middle of October, and includes apply products as varied as herbicides, fungicides and insecticides to micronutrients. Aerial seeding is also done. Summing up, Michel said, “We want to make it presentable. It is an airport that’s serious in the industry. We’re not going to stop.� Referring to corporate usage of the airport, Farr concluded, “If we’ve got our GPS approach and jet fuel, that number is going to go up.�

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Pipeline News

SECTION C March 2014

Pipeline News was 2 sections this month. Stay tuned for next month focus: Heavy Equipment

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