Pipeline News April 2014

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

April 2014

FREE

*HUHKH 7VZ[ 7\ISPJH[PVU 5V Volume 6 Issue 11

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There are many

career opportunities

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

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

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INSIDE SECTION A 4 5

Boundary Dam carbon capture Ć‰ĆŒŽŊÄžÄ?Ćš ĹľĹ?Ć?Ć?ÄžĆ? Ä?ŽžĆ‰ĹŻÄžĆ&#x; ŽŜ ĚĂƚĞ McMillan promotes Saskatchewan at heavy oil congress

11 Southeast Regional College crunchs numbers for student housing 15 Enbridge to replace all of Line 3 17 Kory Sheets goes swamping

6

Editorial

22 Northgate rail hub

7

Opinion

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SECTION B 1

Kramer's adds hydrovacs

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6

Rev Energy opens camp

17 Lloyd. bonspiel

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22 Unity bonspiel

11 Poplar Services new home

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

May 2014 Focus

HEALTH & WELLNESS

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TOP NEWS

Mr. Wall Goes to Washington, part 2

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„ By Brian Zinchuk

Pipeline News Photos courtesy Government of Saskatchewan

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Washington – A year ago, Premier Brad Wall spent the better part of a week in Washington, lobbying various congressmen and women, as well as other policymakers, on behalf of the energy sector in Saskatchewan. From March 4 to 7 this year he was at it again, focusing on the proposed Keystone XL pipeline, Boundary Dam Integrated Carbon Capture Project and, on the agricultural side, country of origin labelling. Pipeline News spoke to Wall by phone between meetings in Washington on March 6. He was just about to step into a meeting with the Environmental Protection Agency regarding clean coal. Pipeline News: This is Mr. Wall Goes to Washington, Part 2? Brad Wall: Ha ha, we’ve got a lot of pictures. P.N.: So what are you doing down there? Wall: Three things. Keystone, number one. I don’t think we should stop pressing on that particular issue. I think the recent State Department report and, and now the comment period, is in play here. It is precisely the time we ought to be down here, actually highlighting some of the things in the report. The ambassador this week sent a letter to the administration based on the State Department’s report. He’s drawing attention to the fact that if the State Department is saying the president’s metric for approving this thing is it can’t increase greenhouse gasses, they point out the increased movement of oilby-rail will increase the CO2 footprint of the transportation of the oil over pipeline. We came down with the American Railroad Association information that shows in 2008, there were 8,000 cars of crude oil, moving product around this country – 8,000. Last year, (it was) 400,000, which demonstrates a couple things. One, oil will continue to be produced, and will find a way out of market. Importantly, it highlights that way is rail. We know rail is an option for moving oil, certainly, but the most efficacious way of moving oil, the most environmentally-friendly way to move oil is a pipeline. We’ve been offering that to both Democrats and Republicans who we know are still supportive of and arguing for Keystone. We’ve been able say, “Look at this number, use this. Your own railway association is showing oil is getting on the rails now.� Rail spills are a little bit worse, as we know, and GHG (greenhouse gas) emissions are higher than when you use a pipeline. P.N.: I understand you’re also talking about Boundary Dam? Wall: We are. We’re linking the two. The other thing we are saying is, when you’re dealing with Canada on oil, you’re dealing with a country serious

about trying to improve the state of energy development. That’s true on oil and its true on coal. In fact, I was asked to participate in a Senate symposium yesterday with four Democratic senators from coal states that are advocating for the fact it needs to be part of the energy mix going forward. We have a great story to tell. Our unit in midyear will go live. It captures 90 per cent of the CO2, which you know is all sold. It’s pre-sold to Cenovus. The numbers are looking better and better in terms of its comparability to combined cycle natural gas as an alternative. I predict we’ll have more visits from decision makers here and others. The U.S. Department of Energy is very much aware of what we’re doing. In fact, when the EPA was listing CCS (carbon capture and storage) options for America, they mentioned two U.S. projects, and Boundary Dam 3. It’s getting be known down here and we’re seeking partners. We want to commercialize the application of the technology and know-how. I think you’re going to see some more, there’s already one, more U.S.-based partners come in on that consortium so frankly we can earn a bit for SaskPower and get some investment in this technology. P.N.: You mentioned mid-year. It was originally supposed to be April, so what’s happening with that? Wall: What’s happened is the technology part is on-time and on-budget, in other words, the capture island. The problem is when they got into the power island on the old generator, there’s asbestos. They found some stuff that put us back a couple months. When we say the new technology is on-time and on-budget for clean coal, it’s absolutely the case. It’s ready to capture the CO2 and pipeline it to the oil company, but there’s some more work on the old technology power island. P.N.: Do you have any idea for a timeline now? Wall: Mid-year is what we’re saying. I said in a press scrum in Regina before I left, late-June-ish, something around there. With this massive project, SaskPower has had no time loss and more importantly, no injuries. We’ve had no one hurt on the job. We’re not going to rush things; SaskPower will get it done right. We’re thinking mid-year. As the price for CO2 as an EOR (enhanced oil recovery) solvent is going up, there’s some pretty big numbers being paid in the United States. This should be a growing interest to the pipeline industry, because the higher that price for CO2 goes, the longer you can have your facility away from an oilfield and still make the numbers work, as long as you can pipeline it there. I think that’s a trend for the future. More and more locations will be in play. It won’t be dependent on immediate proximity to a mature oil asset. X Page A8

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%5,()6 :KLWHFDS DFTXLUHV OLJKW RLO Whitecap Resources Inc. plans to purchase a package of oil and gas assets from Imperial Oil. The portfolio includes unnamed strategic light oil assets focused primarily in Whitecap’s Pembina Cardium /west central Saskatchewan core area, as well as at Boundary Lake in northeast BC, near its core Valhalla area. The total price is $855 million with a closing date by April 30. The acquisition will give Whitecap added concentrated land and an operating base with 6,500 barrels of oil equivalent per day (83 percent oil and NGLs) of high netback production with a low base decline rate of 16 per cent and significant low risk oil reserves upside. The purchase includes material facilities infrastructure. The assets being acquired will be operated by Whitecap providing for low cost future development and a near-term reduction in overall operating costs. The acquisition will be funded with a concurrent $500 million bought deal equity financing and debt. Whitecap’s credit facilities are anticipated to increase to $1 billion on closing of the acquisition of which approximately 30 percent will be undrawn.

Briefs courtesy Nickle’s Daily Oil Bulletin

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%RXQGDU\ 'DP &DUERQ &DSWXUH 3URMHFW DOPRVW GRQH EXW PLVVHV LQLWLDO FRPSOHWLRQ GDWH „ By Brian Zinchuk Estevan, Regina – On April 26, 2011, the SaskPower Boundary Dam Integrated Carbon Capture Project was announced – a project to capture carbon dioxide from the exhaust of a refurbished coal-fired power generating unit. The initial budget was $1.24 billion, and its planned completion date for delivery of CO2 was the first quarter of 2014. Three years later, it’s almost done, but not quite. It’s now April, and that timeline has slipped somewhat, as has the budget. The capture facility was completed on-time and on-budget, but the power station portion caused delays and cost overruns. Pipeline News spoke to SaskPower president and CEO Robert Watson on March 17 via phone for an update on where the project is at. Pipeline News: The Boundary Dam carbon capture project was initially projected to be complete around now. Where are we at? Robert Watson: The capture facility is completed. Construction is done. We’re in the process of commissioning and testing it and doing all the inspection approvals. It’s proceeding along just fine. The power facility has the turbine completed and all ready to go. The boiler is completed and ready to go. What we’re finishing off is all the piping to feed the steam generation to feed the capture facility That’s what’s being completed right now. P.N.: How complete can the capture island be without CO2 to process for commissioning purposes? Watson: It can be complete. It’s done, it’s constructed, it’s just waiting for the CO2 now. We’re all the testing now. Per se, all the major costs are completed, all the engineering is done, the testing is done or being completed. It’s essentially complete, it’s just a matter of feeding the CO2 in. Once the CO2 is in, we’ve always said it’s just a matter of the degree of CO2 capture,

what percentage we can get the facility up to. That will take at least a couple years to work through, because it’s a chemical plant. You tune these things in over several years. P.N.: Were there any specific issue, i.e. quality assurance on welding, suppliers, labour? Watson: We did have issues with labour. We had issues with the shortage of labour over the last year. We did do things – we had approval to bring in labour from the U.S. to help out. We brought in labour from other parts of Saskatchewan and Canada. We did have a problem with labour, (and) enough pipefitters. There were several major projects going on. With the actual welding, we’re being pretty specific about the quality of the welds and everything, so we want to be sure they were correct, so we had to redo some. There were no major issues. You’ll find most companies are dealing with this type stuff (with) the lack of skilled labour. We did have an issue last summer where asbestos was discovered on the site. We literally had to shut down and do a complete cleaning of the site and everything like that, which did delay us, and significantly. Not only was the delay in cleaning the site up, it took us a while to get back up to speed again. It caused delays we’re dealing with now. P.N.: What is your new timeline? When will you first start producing CO2, and when do you expect to start delivering it to Cenovus? Watson: We’re not saying when we’re going to start delivering to Cenovus. We’re trying to prudent about how we commit to that. We’re looking at starting the facility, the actual two facilities together, mid-year. The power facility should be up and running in the May-June timeframe, and then we’ll tune the two facilities together. X Page A9

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0F0LOODQ SXPSHG 6DVNDWFKHZDQ %5,()6 DW KHDY\ RLO FRQJUHVV 5DJLQJ To that group, I was preaching to the converted. „ By Geoff Lee In my keynote address, being able to highlight the geologiPipeline News Tim McMillan, Minister Responsible for Energy and Resourc- cal potential in our province as well as the economic stability es in Saskatchewan attended the 2014 World Heavy Oil Congress and business and energy friendliness of Saskatchewan, I think, opened a lot of eyes to investors. held in New Orleans, Louisiana from March 5 to 7. PN: What message did you take away from the conferWHOC is one of the largest annual heavy oil shows in the world ence about the importance of heavy oil in the global market? drawing more than 1,000 delegates from over 30 countries. McMillan: I think as time The conference provides the goes on, the importance of opportunity for international oil heavy oil is going to be ever incompanies, investors and business creasing. There are substantial people to attend technical sessions, resources in heavy oil in mulbusiness conference panels, keytiple places around the world note presentations, courses and including northern Saskatchtechnical tours. ewan and Alberta. McMillan went there to It’s a resource that is very promote investment opportunitechnologically driven, and ties in Saskatchewan’s oil induswe certainly see that here in try. Canada in our province. The He also delivered a keynote technologies that are currently luncheon speech titled, “Well Pobeing utilized are terrific at sitioned: The Increasing Potential raising production factors. of Saskatchewan’s Energy Sector.â€? I think of Husky’s micro McMillan spoke on the SAGD – the two new projects phone with Pipeline News on at Vawn and Edam East where March 10 about what he and his they are utilizing very sophisteam accomplished at the event. ticated technology to get very PN: Did you succeed in high rates of recovery out of your mission to promote inour formations. vestment and growth opporPN: How did some oil tunities in Saskatchewan’s oil dĹ?Ĺľ DÄ?DĹ?ĹŻĹŻÄ‚Ĺś ƉĹ?Ä?ĆšĆľĆŒÄžÄš Ä‚Ćš ƚŚĞ >ůŽLJĚžĹ?ĹśĆ?ĆšÄžĆŒ ŚĞĂǀLJ Ĺ˝Ĺ?ĹŻ Ć?ĹšĹ˝Ç Ĺ?Ĺś ĎŽĎŹĎ­ĎŽ and gas companies operating industry? Ć?ƉŽŏÄž ƚŽ Ä‚ Ĺ?ĹŻĹ˝Ä?Ä‚ĹŻ ĂƾĚĹ?ĞŜÄ?Äž ŽŜ ÄžĹśÄžĆŒĹ?LJ Ĺ?ŜǀĞĆ?ƚžĞŜƚ Ĺ˝Ć‰Ć‰Ĺ˝ĆŒĆšƾŜĹ?Ć&#x;ÄžĆ? Ĺ?Ĺś in Saskatchewan participate McMillan: Most certain^Ä‚Ć?ĹŹÄ‚ĆšÄ?ĹšÄžÇ Ä‚Ĺś Ä‚Ćš ƚŚĞ ĎŽĎŹĎ­Ď° tĹ˝ĆŒĹŻÄš ,ĞĂǀLJ KĹ?ĹŻ ŽŜĹ?ĆŒÄžĆ?Ć? Ĺ?Ĺś EÄžÇ KĆŒĹŻÄžÄ‚ĹśĆ? in New Orleans? ly. It was a great opportunity Ĺ?Ĺś ÄžÄ‚ĆŒĹŻÇ‡ DÄ‚ĆŒÄ?ĹšÍ˜ &Ĺ?ĹŻÄž ƉŚŽƚŽ McMillan: Husky spoke to showcase our province. We about some of the technology had a booth in the trade fair where we had a couple of geologists who went into the techni- they are using – some of the formations that they are in. Northern Blizzard is another company that was in attencal aspects of the resources we have that spoke to the economic dance and a company that is using different technologies and is potential in our province in regards to heavy oil. It was a conference that was specifically aimed at heavy oil. very technologically driven and is getting very good results from In Saskatchewan, half of our resources and half of our produc- the work they are doing. I was pleased that some of the Saskatchewan companies tion is heavy oil, so we have a great opportunity. (In 2013, the provincial oil and gas industry produced a record had attended because we’ve got a great resource and we are 177.9 million barrels of crude oil and almost half of that was heavy looking for investment s for them to be there. It speaks well for our province. oil). PN: As a board member of Innovation Saskatchewan, are It’s currently a very important resource to us, but I think you excited about new funded research in enhanced oil recovthere’s a lot of upside even beyond where we are today. PN: Were conference goers and delegates aware of Sas- ery technology for heavy oil? McMillan: Yes, there is some very interesting and imporkatchewan’s heavy oil industry? McMillan: Yes, it’s a conference that obviously centres on tant work of understanding our formations being done. (Some of the key objectives of the projects are to study the use of heavy oil. Mexico was there, Venezuela was there, several U.S. microbes and radio frequency heating to increase oil production). states that produce heavy oil were there. It will enable researchers to determine how wormholes are Saskatchewan and Alberta are both important players in this regard. There were several companies there that operate in formed in the formation and how they can be exploited to inSaskatchewan and some that operate exclusively in Saskatch- crease production rates. ewan that were in attendance as well. X Page A10

5LYHU LQNV 'RGVODQG IDUP LQ GHDO Raging River is working on a farm-in agreement effective Jan. 21 with an industry partner to access 100 (95 net) sections of Viking lands in the greater Dodsland area. The company has committed to drill a minimum of 12 wells by Dec. 31, and during the option term, they have the option to drill 6 additional earning wells in 2015 to extend the agreement to March 31, 2016. Under the agreement, Raging River will earn 7085 percent of their partner’s working interest in half sections of land for each earning well drilled, completed and placed on stream. The company has also increased its capital budget to $235 million from $215 million. Raging River has raised their 2014 average production guidance to 9,800 barrels of oil equivalent per day from 9,500 boepd and increased their yearend exit rate to 11,700 boepd from 11,000 boepd.

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. & MANITOBA 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 CONTRIBUTORS R5 -. 0 (575 #( 5 &-)(5555R5 -% .))(575 )-"5 " , R5 #, (575 ,& 35 ),'# % To submit a stories or ideas: Pipelines News is always looking for stories or ideas from our readers. To contribute please contact your local contributing reporter. 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 divi-#)(5) 5 & # ,5 (./, -5 (. ,( .#)( &5 ),*), .#)(65 (., &5 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.

The infrastructure GHÀFLW LV JRLQJ WR FRPH XS DQG ELWH XV \RX NQRZ ZKHUH We often hear politicians spout off about infrastructure deficits, but once elected, they do little about it. In the meantime, the collective infrastructure of our society – roads, bridges, pipelines of the water, sewer, gas and oil variety, are all aging at a rate faster than we are replacing them. In some situations, the consequences become deadly. In New York City an explosion in early March took out two buildings, killing eight people and injuring dozens more. The soil around the gas main was saturated with as much as 20 per cent natural gas, which makes it a pretty good bet there was a substantial leak. The gas main in question was 127 years old and made of cast iron. They say you can’t avoid death or taxes, but perhaps they should add a third thing: rust. In Saskatchewan, we are going to see a major pipeline project come up right away. Known as the Line 3 replacement, it will be a $7 billion project running from Hardisty, Alta. to Superior, Wi. When we last reported on this project last fall, Enbridge was only talking about replacing chunks of the line, 516 kilometres in total. That’s now changed, because on March 3 they announced the replacement of the entire 1,660 kilometre line. By replacing the whole line for $7 billion, they will forego $1.1 billion in maintenance costs in the next three years alone. One thing we don’t want to see is mainline pipelines fail. That makes a bad day for everyone. This line isn’t even their oldest. Enbridge’s Line

1 went into services in 1950, and Line 2 went in several years later. Line 3 was built in the late 1960s, yet it is the one being decommissioned and replaced, not the older Lines 1 and 2. Eventually one would surmise the older pipes will need replacement at some point, too. Cities throughout Saskatchewan, including North Battleford and Estevan, are coping with the reality that nearly all their water and sewer mains in their core areas are now pushing a century old. To replace these, they must also replace the street. These communities only have enough money to do a few blocks a year. The question is, can they replace this ancient infrastructure before catastrophic failures cause real problems? It’s a race against time. The difficulty is that the inflationary cost of labour and materials have made infrastructure replacement more expensive over time, despite the fact we have new, modern equipment like hydraulic excavators with dozens of attachments and boring machines that are so precise it’s almost beyond belief. One man on a medium-sized excavator can easily out-perform the work of 20 men with shovels. Our great-great-grandfathers, who installed much of this infrastructure, would have given their eye teeth for such wonderful machines. How we’re going to deal with crumbling infrastructure without bankrupting ourselves is going to be the primary question of civic leaders for years to come. One thing is for certain – there should be plenty of jobs as a result of it.

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Get in the truck; we’re going to see Kory Sheets My wife Michelle is usually reluctant to follow me on my adventures, but on Friday, March 14, it was a little different. She had a day off from her job as a nurse and was looking forward to a relaxing day of reading and playing around on her computer. I personally had been planning to get caught up on some phone interviews and a pile of writing. Then I remembered something I saw on CJME’s Facebook page the previous night – Kory Sheets, star of the Riders’ 2013 season, MVP for the Grey Cup, was working for an unnamed Carnduff trucking company that provides rig-moving services. That could mean one of two businesses, and I had a really good feeling I knew which one it was. So that Friday morning I phoned Fast Trucking Services, and asked if Kory Sheets was working there. Sure enough, he was, and he and Woodny Turenne had been for several weeks. Not only that, but they would be speaking at the school at around 11:00 or so. It was 9:30 now, and a little over an hour drive from my doorstep to the school. A quick call to the school to confirm, and I had a mission. “Get in the truck,� I ordered as I barged into my wife’s office. “Why?� Michelle asked. “Do you want to go to Carnduff with me? Kory Sheets is working for Fast Trucking and he’s speaking at the school at 11,� I said. “But I haven’t even had a shower yet,� she replied. “Shower quick, I’m leaving in 10 minutes.� She was ready. Camera bag packed, we booted it to Carnduff,

making it to the Carnduff Education Complex with enough time to speak to the principal about how this all came about. It turns out Carlos Thomas and Woodney Turenne have both stayed in his basement suite. Thomas had been the first Rider to come to Carnduff for work. Sheets, however, was staying at Fast Trucking’s general manager Dennis Day’s place. When they walked in the door of the school, I had just strung my cameras around my neck. Introducing myself, I also introduced my wife, who got to shake Sheets’ and Turenne’s hands. I don’t often get flustered with interviews, having spoken to CEOs of billion dollar companies, governors, premiers and the like. But I’m afraid to review my digital recording, because my lack of football knowledge was telling. In madly scribbling notes, Sheets noticed I was using a “C� instead of a “K� for Kory. No embarrassment there - not at all. The guys weren’t at Fast long, having started late in season and with spring breakup due to take place in the next few days. On the trip into Carnduff we saw numerous rigs moving to their racking locations. The two spoke to two groups, Grades K-6 and then 7-12. Sheets did most of the talking. It was hilarious hearing the little kids ask the same questions over and over, including references to hockey. (“How many goals did you score?�) My wife giggled. The older kids were more focused. One kid challenged Sheets to a foot race, and lost. Another precocious girl in the front row asked probably onefifth of the questions.

One of the kids asked why they were working in Carnduff. Sheets replied to the effect that he couldn’t pay his bills with hugs. In the end, the building was filled with smiles from ear-to-ear as kids and teachers dressed in Rider green filed out of the gym. The two players were taken around town to visit a number of other businesses, too. They would work the following week before spring breakup would bring rig-moving to a halt. Dennis Day said they needed workers, and Carlos had come to them looking for work. A few weeks before I met Chris McKenzie, a former Rider working on a pipeline project on the outskirts of Estevan. He was one of several who had found work with A&B Pipeliners over the past year. These guys need work during the off-season, and post-football, and they’re finding it in the oilpatch. I just never expected that the MVP of the Grey Cup would be one of those. When we got home, after seeing a rig move in progress, Michelle was giddy. She couldn’t wait to tell the kids, knowing they would be insanely jealous. “Oh! Never wash that hand!� our nine-year-old daughter said. Jealous, indeed. Brian Zinchuk is editor of Pipeline News. He can be reached at brian.zinchuk@sasktel.net.

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The U.S. State Department is currently engaged in a 90 day interagency review period to determine if TransCanada Corporation’s proposed Keystone XL is in their nation’s best interest. The latest snag however, is a lower court ruling in Nebraska that claims a law that gave the governor the power to impose a pipeline route was unconstitutional. The state has appealed the decision and a new pipeline siting law may have to be passed. Barring any delays, Keystone XL file should be in President Barack Obama’s hands in early June for him to make a decision on issuing a permit to build the pipeline. The $5.4 billion 875- mile pipeline will carry crude oil from Alberta and the U.S. Bakken oil from Montana to refineries on the Texas Gulf Coast. What is frustrating for Canadian interests is the lack of a deadline for Obama to actually make a decision on the project never mind a commitment to do so. Clearly, any prevailing economic, environmental and political reasons for not approving the project lost a lot steam with the release of the final environmental analysis on Jan. 31. The report by the State Department concludes that, under foreseeable market conditions, a new pipeline won’t single-handedly expand the Alberta

oilsands. Hence the project won’t significantly impact climate change as environmental opponents like to argue. The report also addresses Obama’s concern raised last June when he said carbon emissions will be “absolutely critical� in his decision on whether to approve the project. In terms of overall risk, the report states “alternatives to Keystone XL are less efficient methods of transporting crude oil, resulting in significantly more greenhouse gas emissions, oil spills and risks to public safety.� TransCanada will also have to follow 59 special conditions and dozens of other extra spill prevention and mitigation measures with the construction and operation of the pipeline. These measures will ensure that Keystone XL will “have a degree of safety over any other typically constructed domestic oil pipeline system under current code,� states the report. Obama also can’t really argue against the economic benefits of the pipelines to Americans either. The report concludes Keystone XL will support approximately 42,100 direct, indirect and induced jobs and approximately $2 billion in earnings throughout the United States. It would contribute approximately $3.4 billion to U.S. gross domestic product and generate tax revenues for counties along the route.

The U.S. portion of the pipeline will extend from Morgan, Mont., to Steele City, Neb. Politically, it will be hard for Obama to reject the project on the basis of the energy security it will help to provide to his country. Keystone XL will allow the U.S. to displace heavy oil imports from places such as the Middle East and Venezuela with reliable sources of heavy oil from their Canadian ally. What is Obama waiting for is a question that he needs to answer now. The longer he waffles, the more harm he will harm Canadian-U.S. relations. That should be more important to him that helping to prop up countries in the Middle East or Venezuela by favouring their oil over ours. Prime Minister Stephen Harper has called the Keystone XL inevitable and a no-brainer and recently sought a deadline commitment from the Obama administration – to no avail. The Canadian government is pleading for a final call early enough to allow building during the 2014 construction season. Any further delays would deny the Americans of the economic benefits and jobs that the construction of the Keystone XL will create. Harper said in a Jan. 16 interview that if Obama doesn’t approve the pipeline, another president will but that wouldn’t be until at least 2016. Let’s hope Obama will release the oil energy and jobs his country needs with one downward whack of his rubber approval stamp in June.

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Units 4, 5 and 6 being considered for another clean coal project 'HPRFUDWLF 5KRGH ,VODQG 6HQDWRU -DFN 5HHG

W Page A3 P.N.: Do you think the numbers you are talking about will have a better possibility of Units 4, 5 and 6 seeing CO2 capture? Wall: I think that’s the question we’re dealing with right now. The answer is yes, it has increased the possibility. There’s no question, because of our engineers at SaskPower. Part of the reason this

makes sense is remember we had the partnership with the federal government for $240 million, which is one-time. It’s interesting our engineers are saying they’re pretty confident there’s going to be savings in the next generation of at least 20 and likely 30 per cent, and continued savings like any technology. The short answer is absolutely. We are looking at, SaskPower is looking at, new generation options. One of them is Units 4, 5 and 6 being another clean coal project. P.N.: Who are you talking to in Washington? Wall: I’m just right now going into a meeting with the EPA, actually making coal regulations. We’re listing Boundary Dam 3 as something the world should be looking at. We’re going to meet with them.

We met with the White House counsel for environment quality, the special advisors on it, and decision makers, in the House and Senate, on both sides of the aisle. We’ve met 10 senators, for example, four of them are Democrats. It’s administration offices, senators and members of the House. The other issue we’re raising is country of origin labelling, our ongoing opposition to that. Minister Ritz is going to retaliate, we’re going to support him on that. By the way, I’ve said it one national TV, I did not call for a carbon tax, and we’ve sent out a statement to clarify that, with a transcript. I was asked to speculate on a hypothetical question: if the United States implemented a carbon levy, which you and I know they will never do, and Canada harmonized with it, what would it look like.

No call for carbon tax today or any other day Premier Brad Wall took on a Canadian Press story from Mar. 5 regarding a question about carbon taxes while on his trip to Washington. Here is his statement in response: “Contrary to a media story, I did not call for a carbon tax today or any other day. Here is my statement: “I did not call for a carbon tax or levy for Canada to assist KXL approval. “I answered several questions about whether oil and gas regulations in Canada might help with the pending Keystone decision by the U.S. administration. “My answer was unchanged. I said that it might help to have those regulations in place but they ought not to be needed for approval because the overall emissions targets of Canada are harmonized with those of the United States. How each sector of the economy is regulated is therefore not the most

significant thing. “To a hypothetical question from a journalist: ‘If the United States is going to come in and say you guys (Canada) are going to have to put some price on carbon etc. They are probably going to dictate a price to you. What price is that going to be?’ “I responded as follows (transcribed from tape): “First of all, in answer to your question, it’s obvious we are talking very hypothetically. “Even if it’s not a direct dictation, we have said we will support the federal government, we are going to harmonize with what you folks (United States) do. If the United States decided to have some sort of a levy to price carbon, I think then, I can’t speak for the prime minister or the federal government, but I am guessing based on what they have said, they would head down that road – the price would not be that much different than what Alberta has done.

“I think you start slow, admittedly, Alberta’s been there for a while and so there can be this argument that ‘when are they going to increase theirs?’ You start slow and see what impact it is going to have on the economy. If I was here, in politics here, in government here (United States) that is what I would want. If I would agree to that at all, I would want to make sure it started slow because the recovery here (United States) is tenuous, the economic instability here is, the lethargy is certainly here. So I don’t think you want to knee cap your economy with a carbon tax. “But I mean, this is a hypothetical.� “Clearly I was talking hypothetically about the United States and what they might do with this hypothetical. “What I did reference regarding Saskatchewan was the technology already announced but yet to be structured.�

Oil industry faces budget fee April 1 „ By Geoff Lee Regina – Saskatchewan’s attempt to deliver its new balanced budget for 2014-15 with no new taxes will come at the expense of the oil and gas industry. Effective April 1, oil and gas companies will pay a new levy totaling $13.3 million a year covering 90 per cent of the cost of the government’s regulatory oversight. The new levy combines 10 licensing fees into one fee per year based on the number of operating wells and production. “The oil and gas sector powers significant growth in our province,â€? said Energy and Resources Minister Tim McMillan in a statement. â€œThis levy will align us with Alberta and British Columbia where similar levy models exist.â€? The new levy will streamline licensing and regulation which account for more than 20,000 annual transactions. The government said the levy will enable government to expand its efforts to regulate and monitor oil and gas development to keep pace with the rapid growth in the oil patch. The fee is also the result of a projected provincial revenue decrease from $14.18 billion last year

to $14.07 billion for the 2014-15 budget period. The lower revenue projection is based on an assumed WTI price of oil at $95 per barrel in 2014 dropping to $92 in 2015 compared with the actual $98 per barrel price in 2013. On the other hand, natural gas is projected to increase from its 2013 ending price of $2.90 per gigajoule to $3.50 in 2014 and $3.70 in 2015. The new oil and gas fee that will increase provincial revenue has the support of the Canadian Association of Petroleum Producers (CAPP). “With record oil production in the province and projected continued growth over the next 20 years, CAPP supports the oil and gas levy as it will ensure a balanced, competitive, and efficient regulatory framework,� said CAPP’s manager of operations Brad Herald. The levy is also backed by the Explorers and Producers Association of Canada (EPAC). “We support the new oil and gas well levy as it is anticipated to bring significant improvements in timely project licensing and regulatory oversight, while enabling Saskatchewan to remain a leading North American destination for oil and gas investment,� said EPAC president Gary Leach. In the coming year, the government plans to move to a single-window, online system for license

applications that will significantly reduce the current administrative burden faced by industry. “As industry pays more, they will hold us to account to improve our services,� McMillan said. “We will be making a series of improvements to our services and increasing our monitoring and enforcement of our standards. Overall, a safe and effective industry is our common goal.� The Ministry of Economy will implement an $8 million decrease in the Ethanol Fuel Grant Program to continue the wind down ethanol industry subsidies announced in 2013-14. The provincial budget includes $664.5 million for highways infrastructure including pre-construction planning for highways 6 and 39 – twinning from Regina to Estevan and Hwy 39 East of Estevan to Bienfait for 8 kilometres. The budget provides funding to address the province’s labour shortage, including a $1 million increase for the Saskatchewan Apprenticeship and Trade Certification Commission for 300 additional training seats. There is also a $500,000 increase for the apprenticeship training allowance, a $924,000 increase for the provincial training allowance and a $2.1 million increase for 700 new adult basic education seats.

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0LG \HDU QRZ IRUHFDVW IRU &2 FDSWXUH P.N.: Is the SaskPower portion of the pipeline complete? W Page A4 Watson: Yeah, we’re essentially done. We’re getting testing for it done now. We’re not talking any technical issues, any engineering issues, it’s just a We’re ready to go. matter of completing piping. You can’t even add more people on site, because P.N.: How much usage will Aquistore see during these startup phases? it’s close-quarters welding. These things you just have to systematically get Watson: We don’t know yet. We’re going to put in enough to ensure we get done. good test results, and prove out permanent storage, P.N.: How long do you expect commissionbut I’m not sure of the quantities to start off with. ing to take place? P.N.: What will take place between now and Watson: Well, this is the first time a facility the completion? like this has been commissioned. We expect to Watson: It’s just a matter now, quite candidly, be able to get it done in time to get the facility of getting it done, getting the piping in. All other operational mid-year. aspects are pretty well completed. It’s getting the P.N. To follow up on that, when you’re saysteam piping completed. The boiler is done, the ing operational mid-year, does that mean we’re turbine’s in place, and ready to go. The capture facilcapturing CO2 and sending it to Aquistore, or ity is there and we’re continuing testing as we go. we’re capturing CO2 and sending it to Cenovus? There’s no major engineering to be done anymore, or Watson: Well, we’re going to do a bit of technical things to be done. There won’t be any more both. We want to test out the Aquistore facility cost differential. It’s just getting it done. to ensure it does work, and we do have commitP.N.: How many dollars are we talking in total ments to Cenovus. It is a long-term, contractual now? commitment, so we’ll be working with Cenovus Watson: We’re still estimating that. We want to as to how and when we get the CO2 to them. be accurate with our number. We want to make sure P.N.: I understand SaskPower has taken it’s true. We have said it’s going to be over budget, over the ownership and operation of the Aquisbut we’re still evaluating that. There’s not going to be tore wells. Can you elaborate? ^Ä‚Ć?ĹŹWĹ˝Ç ÄžĆŒ Ć‰ĆŒÄžĆ?Ĺ?ĚĞŜƚ ĂŜĚ K Ć?ƉŽŏÄž Ç Ĺ?ƚŚ ĆŒÄžĆ‰Ĺ˝ĆŒĆšÄžĆŒĆ? Ä¨Ĺ˝ĹŻĹŻĹ˝Ç Í˛ any dramatic numbers here. We want to make sure Watson: We’ve taken over the ownership of Ĺ?ĹśĹ? ƚŚĞ Ä‚ŜŜŽƾŜÄ?ĞžĞŜƚ ŽĨ ƚŚĞ ŽƾŜÄšÄ‚ĆŒÇ‡ Ä‚Ĺľ /ŜƚĞĹ?ĆŒÄ‚ĆšÄžÄš Ä‚ĆŒͲ of the number before we come out with it, because it because we felt it was an asset we couldn’t afÄ?ŽŜ Ä‚Ć‰ĆšĆľĆŒÄž WĆŒŽŊÄžÄ?Ćš ŽŜ Ć‰ĆŒĹ?ĹŻ ώϲÍ• ĎŽĎŹĎ­Ď­Í˜ &Ĺ?ĹŻÄž ƉŚŽƚŽ we don’t want to come out with a new number every ford to have anything go wrong with it, not that time. anything was going wrong. We thought it was It is a matter of how fast we get this done. very important to control the asset. The actual operation of it and monitorP.N.: Is there anything you would like to add? ing will be done by an independent party, the PTRC (Petroleum Technology Watson: The project is well over 4.5 million man-hours with no lost-time Research Centre), will be doing that for us. injuries. We don’t want to say that, because you don’t want to jinx it, but cerIt’s important to have independence from SaskPower, that we are getting tainly, safety has been the biggest thing we’ve focused on with this project. independent verification the CO2 is being stored. The size of the project, the newness of the project, with everything like that P.N: Was that always the plan to take over those wells? we’ve spent a lot of time looking at safety. We are going to take our time for Watson: We were looking at it from the beginning. We were keeping our the inspection process and commissioning process. We’re not fussed about a options open as to what we were going to do, but we were looking at what we were going to do with the ownership. It became apparent the better thing to do due date for the project. We’re going to make sure we’ve tested properly before we start it up. was take over ownership of it.

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1HZ WHFK JHWV XS WR UHFRYHU\ W Page A5 Traditionally, we would get three to five per cent recovery from our heavy oil zones. Today with some new technologies we are driving that much higher – in some cases as high as 60 per cent. PN: What did you tell delegates about the business climate for heavy oil investment in Saskatchewan? McMillan: I certainly trumpeted the recent reports that put Saskatchewan as one of the top investment jurisdictions for oil in the world. We are number one in Canada and third in North America, so I wanted to spread that message. We are also on the metrics of economic freedom which is another study that has recently come out – Saskatchewan is number two in North America. In that crowd that is investing in the world, those are things that they look at. When the competition is Venezuela or Mexico or some of the states in the U.S., I think Saskatchewan stands out very well. We do not just have a great resource; we also have a great investment climate that allows projects to get completed and gives certainty to those investments as well. PN: Did you mention the heavy oil industry in

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Lloydminster? McMillan: Absolutely, I often like to tell stories when I am speaking to an audience. They stick with people better than stats and figures. I walked through the interconnected nature of the energy industry, and specifically heavy oil – noting that Glenn E. Neilson, a Canadian born entrepreneur had gone down to Cody, Wyoming, to get involved in the energy business. I told them that he bought a refinery and a second refinery in Wyoming, dismantled it, and brought it up to my home town of Lloydminster and reassembled it. That was what really kicked off what was until then, an untapped resource, the heavy oil resource in Alberta and Saskatchewan. That was the start of Husky Energy. PN: Do you recommend heavy industry players attend next year’s heavy oil congress in Edmonton to be held March 24 to 26? McMillan: I most certainly would. It was in Edmonton about five years ago. When we’re hosting it and Alberta’s hosting it, I think Canada gets a leg up really showcasing the great potential we have. PN: What is the next oil and gas event you are

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attending? McMillan: There is an oilmen’s business forum this Friday (March 14) that I’ve been asked to speak at on a panel. So that’s the next one. There is no rest for the wicked when you have a great story to tell like we do. PN: Are you already following up on investment contacts made in New Orleans? McMillan: We had geologist that were reaching out on a very technical level with colleagues from around the world that were interested in our province. We had a couple of business development officers as well that were working with us to follow up and to ensure we are getting the biggest bang for our buck.

(VWHYDQ (QHUJ\ ([SR XSGDWH Estevan – Organizers are currently working on booth sales for the Estevan Energy Expo, scheduled for June 11-13. The event is being put on by the Estevan Chamber of Commerce. “We’re starting to sell booths,� said Michel Cyrenne, executive director of the Estevan Chamber of Commerce. “It’s not pouring in.� As of early March, more than a quarter of the available booths had been sold. The event is being held in the off-year from the Saskatchewan Oil and Gas Show in Weyburn, the biggest event of its type for the industry in southeast Saskatchewan. The idea is to run on a bi-annual basis after that. The event will be held in Affinity Place, formerly known as Spectra Place, Estevan’s primary arena. The arena will be divided in half, with speakers and meals at one end, and exhibitors on the other. Organizers are hoping to attract around 40 exhibitors. Speakers include Tim McMillan, minister responsible for Energy and Resources; Keith Schaefer, editor and publisher of Oil & Gas Investments; Neil Wildgust, chief project officer of the Petroleum Technology Research Centre; Max Ball, manager of Clean Coal Technologies for SaskPower; Kristen Marcia, co-founder of DEEP Earth Energy Production Corporation (a geothermal operation); Mike Crabtree, vice-president of energy with the Saskatchewan Research Council; and Melinda Yurkowski, assistant chief geologist of the province and head of petroleum geology at the Saskatchewan Subsurface Geological Laboratory. The event will kick off with a supper on June 11. The next day will see speakers throughout the day, starting at breakfast. Cyrenne noted the Chamber has blocked off a number of hotel rooms with several hotels for exhibitors. Once they’ve have first crack, those rooms will be opened to guests. “Our speakers are all booked and the facilities are ready,� he said. Pipeline News is now a media sponsor of the Estevan Energy Expo.

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„ By Brian Zinchuk Estevan – Estevan needs housing, that’s no secret. But just how much is needed has been the focus of a study paid for by the Southeast Regional College as part of its student housing initiative. It’s hard to attract students to the college, including its Saskatchewan Energy Training Institute division, if there’s nowhere for them to stay. Thus, fulltime student numbers have declined, a trend

the college is working hard to turn around. In early January the college released a study showing the impact the Bakken oil play has had on the region, as well as its impact on housing in the region. This new report, called the Estevan Student and Market Rental Housing Project Assessment Report, fleshed out the current and expected future market conditions. “The first report was really about quantifying and qualifying the

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economic impact of the Bakken formation to the Saskatchewan economy and the southeast economy. That was it was all

about, and its impact on the housing situation in Estevan,� said Dion McGrath, president and CEO of the Southeast

Regional College. “The second report, the market study on Estevan’s housing, was simply focused on

verifying what everyone in Estevan talks about, in terms of the housing shortage. The report gives us the evidence that backs up that intuitive knowledge that’s out there that yes, there is a housing issue. Yes, it’s having a negative impact on the prosperity and growth of the city. Yes, we need to do something about it,�said McGrath. The second report fleshes out numbers that were released in January. The 63-page report (and accompanying 159 pages of appendices) authored by Preferred Choice, a Saskatoon consulting firm, concluded, “Strong employment, population, and dwelling growth is forecast to continue for the Estevan Census Agglomeration (CA) including the City, R.M. of Estevan, and Town of Bienfait. X Page A12

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,I \RX ZDQW LQYHVWPHQW \RX QHHG KDUG QXPEHUV W Page A11 Pent�up�demand for housing could see additional projects supported over the next two to three years if the city and developers are able to secure sites and projects capable of capturing the market opportunity. “Assuming forecast population and dwelling growth is realized then about 1,970 additional dwelling units in the Estevan CA would be required for the market over the next 10 years with 1,760 of the dwelling units in the City of Estevan. This would include 1,490 more owner dwelling units and 480 more tenant rental units by 2024 in the Estevan CA,� said McGrath. The need for rental units appears to be most pressing, with the report calling for a large portion of that up front. It stated, “Potential sustained demand could require up to 187 additional rental units by 2016, 125 rental units for 2016 to 2021, and 64 rental units during between 2021 and 2024, plus 104 student rental units. The level of rental units for the market is impacted by the availability of potential social housing and general economic conditions.� While household income levels are “very strong in Estevan,� that is also reflected in the higher construction costs. Since rental rates are higher, it

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helps offset higher project costs. Not only is it hard to find rental suites in the Energy City, it is also hard to pay for them. Estevan has the lowest vacancy rate among Saskatchewan centres in CMHC rental market surveys, as well as the highest rents. The report stated, “The Estevan CA consistently has the highest rental rates for all unit bedroom size categories in Saskatchewan with total average apartment rental rates 20.6 per cent above the Saskatchewan 10,000+ population average monthly rental rates in the fall of 2013.� A survey of Southeast Regional College students at their Estevan campus (which includes the Saskatchewan Energy Training Institute or SETI for short) found 31 of 139 (24.2 per cent) were interested in renting student housing if it was available. A majority of full-time students were interested. This had the report suggesting the college develop a student housing complex on a two-acre site with the potential to add another two acres adjacent to it. The first phase could accommodate about 50 student units with 70 to 75 beds. Asked if this was self-evident, McGrath said, “I’ve heard that. We’re going to be looking for investment from the private sector and public sector to help support the project. You can’t present self-evident things without backing them up with facts and figures. It was a piece of work we needed to do to provide the evidence to anyone we’re going to be asking for financial support. That’s what that report does. “Do we need to study it more? No. It provides us with the answers we needed, and the next step for us is working on a full-scale business and investment plan.� They are working with the city to identify suitable locations. “Hopefully the city will give consideration to that. The city has been very supportive, right from the get-go, from our initial conversation in July,� said McGrath. “We’ve made a request of the city to partner with us formally, and it’s our expectation the city is giving due consideration.� The report suggests a location close to SETI. There’s land that’s open right across the street from SETI, but that land was developed with industrial purposes in mind, including thick asphalt to take heavy trucks. It’s the only paved industrial park in the city. Where this housing project would end up would be up to the city, he noted. X Page A13

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Exhibit 4.11 Ͳ CMHC Fall 2013 Total Apartments Average Rent Comparisons

Source: Prepared by Preferred Choice from Canada Mortgage and Housing Corporation, Fall 2013 Rental Market Report

W Page A12 “Clearly from the college’s perspective, the closer to this campus, the better. However, I’m not familiar with the city’s development plans where housing is going to be in the future,� said MGrath. There’s historical precedent for this, as the land SETI is positioned on was provided by the city. As for timelines, McGrath said they are currently working on the business plan. “I’m hoping by the end of this month (March) our consultant will be able to provide us with a draft business plan that we can take a look at, have some discussions with it, and hopefully go to some private sec-

tor interested parties and have a discussion about it and get reaction. “The next key piece is location. If we’re fortunate enough that the city partners with us on location that would be a tremendous boost for moving forward.� As for when they would be scratching dirt and getting construction underway, McGrath said, “Everything is dependent on the business case and the private sector jumping onboard. If that happens, the next step is going to the provincial and federal governments to see if they will get onboard to support it. If we’re fortunate enough to put a financial capitalization package together, then I’ll be

able to tell you. “If the private sector in Estevan isn’t willing to invest into it, it’s very unlikely the federal and provincial governments would come on board to support it.� They were told very

on by Chamber of Commerce members to be wary of investors with no ties to the local labour market. McGrath said, “They want local businesses and industry to be able to invest so they can

help solve their labour force issue. They have positions they can’t fill because they have no place to live. That’s the principle we’re going to be pursuing. We’ll be going to local businesses first, to encourage the, to

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convince them, that it’s in their best interest to invest. “Their payback will be increased productivity, and economic growth for their business. That’s where their rate of return will be, to fill the vacant positions they have.� Multiple scenarios are being looked at since different businesses have different aims. As for construction, stick-built or modular construction will be addressed by a response to a request for proposals. The total would be 100-110 units on two acres. If the second phase goes ahead, it could have a 90-child daycare as a component. Concluding, McGrath said, “We’ve had contact with numerous with private sector businesses that are interested in the project. My priority is making sure that the business case makes sense and the numbers add up and the investment options are attractive to turn that interest into something more tangible.�

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Pipeline News on March 17 they were filter socks associated with fracking. Noonan is a small down with a population of 121 according to the 2010 census. The gas station in question is on the north edge of the city, and has been abandoned for at least five years. “They aren’t sup-

posed to be disposed of this way,� she said. There is police tape around the building, but Fagerbakke would like to see it boarded up. Emergency management officials from Divide County, the county surrounding Noonan. Scott Radig, director of the division of waste management with the North Dakota

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Health Department, put some perspective on the discovery. Filter socks are used to catch sediments in frac flowbacks and in saltwater disposal sites. They are used to prevent sediments from going down the well and plugging off the formation. The radioactive items in question are considered TENORMS, or technologically enhanced normally occurring radioactive materials. The level of radiation in the Noonan gas station is low, less than an X-ray, according to Radig. “Our staff took readings there. There is now risk to the public,� he said, as long as they are not disturbed and ingested or inhaled. Landfills in North Dakota have a limit

of five picocuries per gram of radiation. That level of radiation can be found in a Brazil nut. Granite countertops, the type now common in household construction and used for food preparation, will have 20 to 25 picocuries per gram of radiation. The filter socks found probably have 10 to 60 picocuries per gram of radiation, or about twice that of a kitchen countertop. That being said, current state laws were envisioned before the present oil boom. As such, there are no approved waste facilities in the state, and such waste is shipped out of state. Montana is the destination in some instances, and Colorado and Idaho in others, when the radiation is slightly higher. North Dakota is now looking at rule

changes and study into such waste handling. The gas station had roughly 200 garbage bags of filter socks. That’s a small fraction of the approximately 25 tonnes of filter sock waste generated by the oilpatch in North Dakota in a single day. “We’re trying to get a handle on how much is produced,� Radig said. The Health Department is working with the Divide County Sheriff ’s Department investigating the matter. “The owner of record is currently a fugitive on larceny charges in Wyoming,� he said. “Even if we catch him, he’s got other problems.� “There is a lot of misinformation,� Radig said. “Radiation is a word that scares a lot of people. People think of Three Mile Island or Fukushima.�

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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(QEULGJH WR UHSODFH DOO RI /LQH Calgary – Last fall Enbridge announced they were going to replace substantial portions of its Line 3 through southeast Saskatchewan and southwest Manitoba. Now they’ve changed their minds, and are going to replace the entire pipeline instead. Enbridge Inc. and Enbridge Energy Partners, L.P. announced on March 4 they have received shipper support for a $7 billion investment in their Canadian and U.S. mainline system running from Edmonton, Alberta to Superior, Wisconsin. The Line 3 Replacement (L3R) Program will complement the existing Line 3 segment replacement program and include all remaining segments of Line 3 between Hardisty, Alta. and Superior, Wi. The L3R Program is targeted to be completed by the second half of 2017. Mainline shippers have agreed to support surcharges on all barrels moving on the mainline to provide an appropriate return on the additional capital required. It will be subject to customary regulatory approvals. Under the L3R Program, all segments of the line between Hardisty and Superior will be replaced with new pipe using the latest available high-strength steel and coating technology. Long-term integrity costs to maintain the line will be substantially reduced and the reliability of service will be enhanced, according to an Enbridge press release. “This is a very important project for us. It represents a major enhancement of our mainline liquids pipelines system and, at $7 billion, it’s the largest project in our company’s history. It’s well aligned with our focus on safety and reliability. We’ve been talking about that for some time. It will contribute to our industry-leading EPS growth rate well mast 2017,� said Al Monaco, president and chief executive officer of Enbridge Inc. “Most importantly, it comes with significant benefits to our customers. The increased reliability and throughput on our system will provide customers with greater surety of service to key markets. “The Line 3 replacement program is an important project for our customers and for Enbridge and aligns very well with our strategic priorities.� Today Line 3 is one of six pipelines in Enbridge’s mainline system moving crude oil out of western Canada. Three portions of pipe have been targeted for replacement; 20 kilometres east Cromer, Manitoba, 28 kilometres downstream of Gretna, Man., where the line crosses the U.S. border, and a further 29 kilometres before Superior. Sometimes it makes sense to replace segments of pipe instead of other forms of repair. X Page A16

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/LQH UHSODFHPHQW SODQQHG WR EH FRPSOHWHG E\ W Page A15 Instead, Enbridge will replace the entire line instead of just those segments, and others that had been planned to follow. “We work closely with our customers to understand their needs now and into the future; the L3R program will provide high reliability and flexibility to accommodate the level of throughput we expect they will require. The increased reliability of throughput on our system will provide our customers with assured service to key markets,� said Monaco. The overall capacity of the system will not change, Monaco noted, pointing to upstream

and downstream components. The system will be in balance into and out of Superior. By the end of the decade, Enbridge is forecasting moving 2.6 million barrels of product per day. The capacity will be 2.85 million barrels per day in total. “You can think of this project as a buffer to deal with unplanned disruptions and to mitigate maintenance, and provide additional scheduling flexibility that shippers need,� he said. This is important for both shippers and refiners, he noted. By replacing the entire line, it avoids $1.1 billion that would have been spent on mainte-

nance capital by 2017. Since Line 3 is already operating, Monaco said, “It does not require a Presidential Permit.� “We’re restoring Line 3 to its original condition.� The lack of approval for such a permit has been the major stumbling block for the TransCanada Keystone XL pipeline, which was approved by the Canadian government several years ago. Added Monaco, “The L3R program will be the largest project in our company’s history and will serve to significantly extend our industry-leading earnings per share growth rate well beyond 2017. We now

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stand at $36 billion of enterprise-wide commercially secured investments which will all be generating additional earnings and cash flow by 2017.� Initial development work is underway to support the regulatory applications that will be submitted in late 2014. This includes an extensive public consultation process with landowners, Aboriginal and Native American communities, municipalities and counties and other stakeholders along the Line 3 right of way. Further information on the project will be shared with the public in the near future through mailouts and public meetings. The Canadian L3R program, between Hardisty and Gretna, currently is estimated to cost approximately $4.2 billion and will be undertaken by Enbridge’s wholly-owned subsidiary, Enbridge Pipelines Inc. The U.S. L3R Program, between Neche, N. D., and Superior, is estimated to cost approximately US$2.6 billion. The U.S. program will be undertaken by Enbridge Energy

Partners, L.P. (EEP) with funding provided jointly by Enbridge and EEP at participation levels to be finalized and approved by the EEP Special Committee. The program will result in the elimination of $1.1 billion of Line 3 integrity capital which would otherwise be required by 2017, as well as elimination of additional post2017 integrity capital. The surcharge on barrels moving on the U.S. mainline will be set to recover a return on and of the incremental U.S. L3R capital. The surcharge will be based on EEP’s existing facilities surcharge mechanism cost of service methodology. A separate surcharge will apply to all barrels moving on the Canadian mainline at the Canadian local toll, and another surcharge will apply to the international joint toll (IJT) applicable to all barrels that travel on both the Canadian and U.S. mainlines. The IJT surcharge will be set at a level that will cover the U.S. surcharge plus enough, together with the Canadian local toll surcharge, to provide an appropriate return on the incremental Canadian L3R program capital. The capital costs on which the surcharges will be based will reflect detailed estimates to be finalized in the first quarter of 2014. Shippers will have the option to cancel the L3R program in the event that the detailed cost estimate exceeds

the current preliminary estimate by more than 15 per cent. In the event of such cancellation, all development costs incurred to that date would be recoverable from shippers. Guy Jarvis, president, liquids pipelines for Enbridge, said the L3R program provides a very attractive solution to Enbridge and their shippers. “In the long run it is the most efficient way to maintain the line,� Jarvis said. “It also improves the reliability of the system, with less downtime for inspections and repairs and more operating flexibility. The IJT surcharge structure for the program is designed to provide Enbridge with a solid return on its incremental investment.� Mark Maki, president, Enbridge Energy Partners, said, “The U.S. Line 3 replacement program will provide a significant attractive investment opportunity for EEP, enhancing our distributable cash flow growth rate. The funds anticipated to be released through projected drop downs of additional interests in our natural gas gathering and processing business to Midcoast Energy Partners, will expand the Partnership’s ability to undertake a significant participation level in this program.� Line 3 is a 1,031 mile (1,660 kilometres), 34-inch diameter pipeline that has been in operation since 1968.

%ODFN3HDUO FORVHV 0 HTXLW\ GHDO Calgary – BlackPearl Resources Inc. has closed its previously announced bought deal offering of 26,500,000 common shares at $2.65 per share for total proceeds of over $70 million. The company intends to use the net proceeds from the offering to fund ongoing capital expenditures, including the first phase of the Onion Lake thermal project, and for general corporate purposes. The previously announced private placement of an additional 3,773,585 common shares of BlackPearl at $2.65 per share for aggregate gross proceeds of $10 million will close upon receipt of all necessary regulatory and stock exchange approvals – expected in April.

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*UH\ &XS 093 JRHV VZDPSLQJ LQ WKH RII VHDVRQ „ By Brian Zinchuk Carnduff – He may have been the 2013 Grey Cup Most Valuable Player, with two touchdowns in the big game, but between seasons, Kory Sheets still has bills to pay. The now-former Saskatchewan Roughrider spent much of March mov-

ing drilling rigs with Carnduff-based Fast Trucking Services, along with Riders Woodny Turenne, Carlos Thomas and Eddie Russ. Their work in the oilfield has become part of a growing trend, as several current and former Riders have found work in the patch, most notably with A&B Pipeliners. Fast Truck-

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ing has now become part of that trend. While Turenne and Thomas are on next year’s roster so far, Sheets has recently signed with the NFL Oakland Raiders, where he is supposed to report for off-season training on April 21. It marks a return to the big show,

where he had worked with the San Francisco 49ers, Miami Dolphins

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W Page A17 As for oilfield work, Thomas got the ball rolling, as it were, as the first coming to Fast Trucking for a job. Fast Trucking general manager Dennis Day asked Ryan Nichols, principal at the Carnduff Education Complex, if Thomas could stay in Nichols’ basement suite. Nichols, dressed in a Rider Jersey prior to the players’ arrival at the school on March 14, noted there had been a housing shortage in town and the apartments were full. “When Carlos left, Woodny moved in,� he said. “He was at Fast’s camp.� Nichols has personally been a fan all his life. Originally from Moose Jaw, he said, “My dad had season tickets back when they were terrible.� Thus, it wasn’t too hard of a request to say “yes� to.

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Thomas came in mid-February. Turenne and Russ followed. “Kory came in just in the last three weeks,� Nichols said. Day put up Sheets at his house, across the road from the Fast yard. “I would say the word has probably spread that there is opportunity here,� Nichols replied when asked why he thought players would find work in Carnduff in the off-season. “There are definitely jobs here.� Day said, “They came to us looking for work, Carlos and Woodny. Kory then called Laurie (Connelly).� Day said they needed workers, noting, “We were busy. “They’ve been labouring, helping most rigs.� Asked if there’s work available for the Riders come the next drilling season if need be, Day replied, “I hope so. We should have some.� Sheets and Turenne spoke to Pipeline News briefly before talking to all the students in the school in the gymnasium, starting with Grades K-6 then Grades 7-12. Sheets said he started with Fast Trucking on Feb. 27. Asked how that came about, he said, “Honestly I don’t know. Carlos and Woodny were here first. I called Carlos, and he said he had a job if I still wanted to work. I said, ‘Yeah,’ and came up.� Turenne started the first week of February. “Carlos met some swampers when he was working at an oil rig and told me about it and he gave me Laurie’s phone number. I called Laurie up and went from there.� Laurie Connelly is

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part of the management at Fast. Asked how he liked working as a swamper, Turenne said, “It’s interesting. It’s kinda fun. You get to meet a lot of people. It’s exciting to me, because you’re always on the move, and you have to be alert.� Sheet said, “It’s exciting to me, I’m having a good time. It’s exciting seeing all those big things and putting them together.� Have they ever been around oilfields before? “Not at all,� Sheets said. “This is the first time. “Me and my grandpa had a little joke. I would say, ‘Honestly grandpa, I’m not qualified to do nothing. Ha! We started talking about football and that kinda broke the ice,� Sheets said. “I never really had a long term job where I could say I knew what I was doing, other than me just being there.� Turenne and Sheets joined the Riders at the same time, just as they would come into the oilpatch. The pair had the wonderful experience of going through one of the coldest winters in recent memory tearing apart drilling rigs. In early March, wind chills were hitting the -52 C range. That’s pretty harsh to Florida, where they both call home. (Sheets is originally from Hartford, Conn., while Turenne is originally from Fort Lauderdale, Fla. “Yeah, that was serious,� Sheets said. They were moving Trinidad, CanElson and Precision Drilling rigs. “It was awful to stay out for more than two minutes. I would get back in the truck every two minutes. That’s crazy, we actually were hurting,� Turenne said. X Page A19

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W Page A18 “We were doing a Grey Cup tour that weekend. The entire weekend it was -56. We came back and it was still -56. We were walking outside to take a deep cough, like a smokers cough? It was hard to breathe!� Sheets added. “It definitely allowed us to work faster,� said Turenne. “The quicker you get done, the quicker you are in that truck. You were movin’!� Connecticut has a lot more snow in a short period of time, but Saskatchewan has a lot of snow over a long period of time, Sheets noted. What was the hardest thing to do as a swamper? Sheets replied, “Probably finding something hard to do. It’s pretty easy. The trucks do most of the work. You just have to hook them up.� Have they been doing any training now? “That’s the wonderful thing about working at Fast Trucking. Dennis, he likes to work out as much as possible, so he would call us and text us and ask us if we would want to work out at 6 o’clock. That’s usually around the time we would get home and eat, then wind down and relax a little bit. Then, let’s get to work!� Sheets said. “Dennis has a gym in his house, and we used that to the fullest extent. Dennis was there working beside us and everything. Was he keeping up? “Pretty much, yeah. He doesn’t quit,� Sheets said. A question a lot of people want to know is if Oakland doesn’t work out, is Sheets planning on coming back? “That’s the plan. If the NFL doesn’t work out, then yes, I would definitely come back to the Roughriders. I wouldn’t want to play with any other team. Friends of mine might want to market themselves, but playing here has been wonderful to me,� he said. “Before we got here, the team was, you could say, terrible. They lost a lot of games. Then we came here, and we started winning, then the following year, we won the Grey Cup. Being part of that was something special.� Can the Riders keep that lightning in a bottle from last year? “Definitely. The core of guys are still there. They lost a couple of guys on offense and one or two on defense. That happens every year. You have to replace and rebuild.� “I’m definitely coming back to Carnduff and visiting. The people are great. I’m coming back,� Sheets concluded.

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Bill Murray lines up a pipe for hardbanding.

Kelly Keys watches the automated welder through green welders’ glass as the hardbander does its work.

Some directional tools will need to be redone after just two holes. Three bands go on each joint of pipe. Three different types of pipe – drill pipe, heavy weight and drill collars come in for banding. “That’s what rubs off on the rock instead of pipe. It’s casing friendly, so it doesn’t rub a hole through the casing. It’s really hard, but it won’t wear through,� he said. Spring is a busy time, as rigs get all their pipe inspected during road bans. The process begins with joints of pipe being preheated as they come off the rack. Flames pour out of the wrap-around torch as it preheats the pipe. The operator tests how hot it is with a temperature-sensitive crayon before putting it in the banding machine. By working indoors in a shop, they have much better quality control. Work-

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tom ends of drilling rigs – mud tanks, pump houses, three-sided shale bins, and lots of pipe tubs.� Much of that can be found on Vortex Rig 3, one of the newest rigs in the region. “We do lots of quoting for rig companies. We’ll never turn down work, that’s for sure,� he said, adding “We do tons of agriculture work. “We’ve redone the undercarriages on lots of service rigs, and lots of repairs on service rigs.� “We’ve been here three years now, and we’re thinking of getting bigger,� Dumaine said. They are thinking of expanding their shop this year or next. It would be heated, with a 20-tonne overhead crane and three or four bays.

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Flames pour out of the pipe preheater.

ers aren’t freezing in -45 C wind chills and the pipe isn’t either. Thus preheating is much more consistent. It also reduces the chance of thermal shock from applying heat to bitterly cold steel. Once in the hardbander, the operator sets up the automated system’s controls, and then the machine robotically welds the hardbanding onto the pipe. It’s similar in concept to robotic welders used on big-inch pipeline projects, except in this case, the pipe rotates, not the welder. Once complete, the pipe is pulled out by a winch and the hydraulic rack does the pipe handling. “We can do 60 to 80 joins in a 12-hour shift,� Dumaine said. Keeping busy “We’ve been going pretty hard building oilfield equipment,� Dumaine said. “In Saskatchewan, it’s been lots of hardbanding. We’ve been building lots of bot-

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„ By Brian Zinchuk Redvers – Magnafab Inc. in Redvers is putting renewed emphasis on the hardbanding portion of its business. Hardbanding is the process of welding on tough material onto drill pipe and downhole tools to increase their endurance in the abrasive environment downhole. Trent Dumaine, general manager, said they converted their second hardbanding unit, a mobile one, into stationary usage. “We’re the only ones that do non-mag monels in southeast Saskatchewan for directional companies,� he said. Magnafab does “a really aggressive hardband for the Bakken zone. That’s really popular around here.� Bakken work near the U.S. border is especially hard on hardbands, he noted.

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If only Northgate’s rail hub were open already‌ „ By Brian Zinchuk Northgate, Toronto – With farmers fuming at the railways for lack of action in moving the largest crop in history to port, any alternative is being considered. With a surge in crude-by-rail, some people are pointing figures at the oil industry for taking up capacity they feel could otherwise be used for grain shipments. Premier Brad Wall on Feb. 26 suggested that the Northgate Commodity Logistics Hub, currently under construction on the U.S. border, might be a future option. The $90 million project connects to the BNSF railway, not Canadian Pacific or Canadian National, providing a direct path into the American heartland and points beyond. Construction on the 1,300 acre site began on June 3, 2013. It’s prin-

ciple purpose it to ship out crude oil and grain, and bring in frac sand and pipe for drilling. At full-build out, it should be able to ship out 70,000 barrels per day of oil, a number very close to all of Saskatchewan’s current Bakken oil production. However, it turns out that natural gas liquids, or NGLs, are also being added to the mix. Pipeline News spoke to Ceres Global Ag Corp. president and CEO Michael Detlefsen in Toronto via phone on March 12. Pipeline News: The premier has been spending a lot of time talking up your Northgate Hub, specifically, both for grain transportation and for oil. What do you think of that? Michael Detlefsen: It’s always nice when someone speaks highly

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of your project. I think we bought the land, and designed this project,

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to be a debottlenecking design for Saskatchewan commodities. We just didn’t think the logistics situation in Saskatchewan was going to be as dire as quickly as it has become. So there is something to being at the right place at the right time. We wish we were completely built and open today, but we’re not. That said, I think we foresaw, given the huge growth Saskatchewan, across all sectors, that there would be this logistics bottleneck.

We thought we could provide an outlet into the United States that maybe hadn’t been tapped before, that we would be uniquely positioned to contribute to the solution. We don’t think we’re the solution; we’re just part of the solution. P.N.: Are you feeling pretty good about your decision to go with a BNSF-connected facility? Detlefsen: Yes, yes we are. We’ve always held the BNSF in high regard, not that we

don’t hold the Canadian railways in high regard. We’re partners with them in a number of our businesses. The BNSF provided a particularly unique access to the U.S. market. They have a different way of running their railway, very much focused on unit trains and efficiency, and they have access to the Gulf of Mexico, Pacific Northwest, California and Mexico itself that not all the existing transportation corridors can provide. X Page A23

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707,305, 5,>: (WYPS W Page A22 P.N.: In regards to the grain portion, and given the backlog will take quite a while, are you are looking at accelerating your plans on the grain side at all? Detlefsen: We’re still finalizing the design and construction plans. Obviously the logistics bottleneck has given us a bit of an impetus to look at if we could accelerate the project, or do it in different stages or different ways. We’re looking at those options, but we haven’t come to any decision yet. P.N.: So you couldn’t do a temporary loading facility for grain loading, say with augers instead of a full facility? Detlefsen: We potentially could, the question is whether that’s really efficient in terms of debottlenecking the system, and whether it’s efficient for the BNSF. You have to remember, the BNSF wants to do unit trains. They want to do 120 cars in, load it in 8 to 12 hours, and pull them out again. If you do the mobile grain concept, with augers and bins, that’s not unit trains, that’s manifest. You might get a reasonable throughput out of it, but we don’t know if that will work yet. Could we do it? Potentially, but no decisions at the moment. P.N.: Some people seem to be thinking they see an awful lot of black trains going across the prairie with tanker cars, and that’s why their grain is not going to market. Is there anything to that, or is that just hyperbole? Detlefsen: I think that a lot of people gravitate to the easy solution. This is highly complicated problem. There’s not enough port capacity. There’s bottlenecks in Vancouver and Prince Rupert. We’ve got 50 or 60 boats sitting off the coast of Vancouver, waiting to load up with grain. The railways don’t have enough grain cars. The winter has been absolutely brutal so (Canadian Pacific CEO) Hunter Harrison is absolutely right in saying when it goes below -25 C, you have to have shorter trains. All of these constrictions on capacity have contributed to the problem. It’s not just other commodities displacing grain. It’s a whole bunch of factors, not to mention a large carry-over from the 2012 crop and a bumper crop in 2013. P.N.: Don’t we have winter every year? Minus 25 temperatures are nothing new. Detlefsen: But we’ve had more of that this year. That’s not the only problem, that’s just one of the contributing factors. I heard the other day it’s been the coldest winter in Winnipeg in, like, 80 years. X Page A24

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NGL exports are now part of Ceres’ Northgate plan W Page A23 P.N.: How does this affect your oil plans? Does the grain affect the oil at all? Detlefsen: No, it doesn’t. We had always planned to have a high-efficiency grain terminal at Northgate, and a high-efficiency oil terminal at Northgate. We have almost 1,300 acres on which to build these facilities, and the plan has dedicated loop track for oil and a dedicated loop track for grain. We can add two more dedicated loop tracks if needed. I think there’s lots of capacity at Northgate to handle both commodities, and in fact we’re looking at natural gas liquids and drilling supplies like frac sand and pipe and stuff. There’s lots to room, and lots of capacity for all of that in our plan. P.N.: That’s the first time I’ve heard you mention NGLs. Is this a new development? Detlefsen: It is. As you probably know, the Saskatchewan government has placed a ban on flaring effective mid-2015. That’s causing a lot of the E&P companies to think about what are they going to do? They have to capture the gas and process it, which is creating surplus natural gas, but also surplus propane, butane, etc., all of which have to go somewhere. Saskatchewan, with its growth, has some use for these products, but the demand is far less than the supply, so these products have to go somewhere. We’re looking at potentially capturing some of that excess supply and moving dĹšĹ?Ć? ƉĹ?ÄžÄ?Äž ŽĨ ĆšĆŒÄ‚Ä?ĹŹÍ• Ć?Ĺ?ĆŤĹśĹ? ĹŠĆľĆ?Ćš Ä‚ ĨÄžÇ ĹľÄžĆšĆŒÄžĆ? Ć?ŽƾƚŚ ŽĨ ƚŚĞ Ä?Ĺ˝ĆŒÄšÄžĆŒÍ• ĹľÄ‚ĆŒĹŹÄžÄš Ä?LJ ƚŚĞ Ć?ĹśĹ˝Ç Ä¨ÄžĹśÄ?Ğ͕ Ä?Ä‚Ĺś ĹśĹ˝Ç Ä?Äž Ɖƾƚ Ĺ?Ĺś ƉůĂÄ?Ğ͕ Ä‚ĹŻĹŻĹ˝Ç Ĺ?ĹśĹ? ƚŚĞ EĹ˝ĆŒĆšĹšĹ?ĂƚĞ ŽžžŽÄšĹ?Ć&#x;ÄžĆ? >Ĺ˝Ĺ?Ĺ?Ć?Ć&#x;Ä?Ć? ,ĆľÄ? ƚŽ Ä?ŽŜŜÄžÄ?Ćš ƚŽ Ä?Äž E^& ĆŒÄ‚Ĺ?ĹŻÇ Ä‚Ç‡Í˜ File photo

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it to market in the United States and beyond. P.N.: You have four gas plants within 40 miles of your facility. That puts you really close to those gas facilities. Is that what you are factoring in here? Detlefsen: Yes, and there’s other gas plants on the drawing boards as well. P.N.: Is there any else you’ve added to your plans? Detlefsen: We’re starting to explore fertilizer, but we haven’t got very far yet. We’re in the early stages on that. P.N.: Are you talking liquids, anhydrous ammonia, or granular? Detlefsen: We haven’t gotten that far. We’re in the very early stages. We’ve got a concept that we think we should be doing fertilizer. What forms, what types, what partners, we don’t know yet. P.N.: Where are you at this point in regards to construction? Detlefsen: We’re about 75 per cent of the way through our site preparation. We still have some grading to do and ballast to put in. We’ve laid a little over a kilometre of track north of the border into the site. We have to finish laying the other pieces of track. In the new construction season we have to put in the Y. We have to put in the two-and-a-half loops, we have to put in the ladder tracks; we have to put in the inspection side-out. All of that, we expect to start as soon as the construction season lets us. X Page A25

707,305, 5,>: (WYPS W Page A24 Last year, as you know, we were delayed. We thought we could start in April. It ended up being June, then we had 40 days and 40 nights of summer, where it rained all the time, and we had effectively a mud bath on the site. This year we’re hopeful we will get into the construction season a little earlier than June. How much earlier, we can’t say. We can always be surprised. Those are the pieces we have to complete around the site. As one of our directors says, it’s the creation of a Monopoly board. Then we would start construction of the oil loading area, the NGL loading area, and associated infrastructure, as well as the grain elevator. That would all, for the most part, occur in the summer. The grain elevator will take a little longer, I would think. We’re still finalizing the design and timeline for that. We’re pretty confident we can be moving oil and NGLs by the fourth quarter of this year. Grain may take a little longer. We’re still in the process of analyzing the build-out. I’m not sure if oil and NGLs will be at the same time, but we think we can get them by the fourth quarter. We’re still doing planning and design on that, so we’ll know a little more on that in six weeks. Grain, we expect to be running in a year. It’s just a question of can we be faster than that? P.N.: Is there anything you would like to add? Detlefsen: We’ve received permission from U.S. Borders and Customs to connect to the BN, that 40 foot piece that was sitting on the BN side, we can now connect as soon as the weather clears. It means we don’t have to truck anymore. It means we can rail in the construction materials. It’s a huge savings for us. It makes it more efficient. The key thing is we’ve got the connection of the track. It’s not like it’s a new border crossing. It’s been there for 100 years. It’s a rejuvenated border crossing, and we’re pretty excited about that. The BN connected to the CN at Northgate, and had been since 1912. You’ve have to ask the CN this, but they ripped up the track to wherever it was. I think it went into the west side of Regina. P.N.: Too bad you didn’t have that track now. Detlefsen: The CN obviously dug it up for a reason. What I’ve heard, you’d have to ask them, is that they wanted to run down the longer haul into the U.S. instead of handing it off to the BN, which would make sense to me. If you could do 4,000 miles instead of 180 miles, of course you would do that. P.N.: Is there anything about Stewart Southern Rail we should know about? Detlefsen: We’re continuing to see good growth. We’re expecting to do about 17,000 to 18,000 cars this year, of which 80 per cent would be oil and 20 per cent would be grain. We’re constrained by this logistics thing. We’re working as hard as we can. We were surprised in November and December, because the pipeline closed for a period of a couple weeks, and there was a lot of extra volume going through. But that’s the current forecast, and that’s up from last year. We’re looking at incremental business opportunities. Hopefully we’ll see more growth as a result. P.N.: You own 25 per cent (of Stewart Southern Rail)? Detlefsen: Yes we do. P.N.: No one has built new rail, other than sidings and loading facilities, in Western Canada in decades. Have you ever thought about connecting from

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Stoughton to Northgate? Detlefsen: The thought has crossed our minds, but the magnitude of the Northgate challenge is we need to get this logistics hub built. That is the number one priority for Ceres at the moment. P.N.: Do you have any other projects? Detlefsen: We do have stuff in the pipeline, but it’s more concept than anything else.

Unified under one brand. We are pleased to announce that Carson Energy Services is now conducting business under the URS banner. Although our brand has changed, our commitment to safety excellence, backed by our solid reputation of supporting oil and gas development, remains the same. At URS, we believe that success is ultimately determined by what we help our customers achieve. So whether it’s pipelines, horizontal directional drilling, fabrication, maintenance, or ďŹ eld facility construction, you can continue to rely on us to provide solutions across the entire energy life cycle. We are URS

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Estevan – It was just slightly warmer than the frigid days before or after, but Chris McKenzie was okay with it. “Just pipelinin’,� he said, standing beside his oneton truck. “Workin,’ workin,’ workin.’� McKenzie is one of a number of current and former Saskatchewan Roughriders who have found work with A&B Pipeliners’ Regina operation. On Feb. 27 he was doing final cleanup on a short pipeline project just east of Estevan, as the pile of lathes in the back of his truck attested to. Formerly of Queens, New York City, the almost-32-year-old played four years with the Roughriders as a cornerback. He retired in early 2013, and joined A&B last September. McKenzie played with the NFL Houston Texans from 2005 to 2007, then one year of arena football until he joined the Riders. When the football career came to a close, he found himself in the oilpatch. “I was rigging, then I hopped on pipeline. I think it will be for a long time,� he said. McKenzie plans on getting married to a local girl in January 2015, but it will be in a much warmer place. They’re heading to Jamaica.

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project in April, 2014, but due to delays in the refurbishment of the power plant portion of the project, that’s going to be several months off. The Aquistore project is planning to pump carbon dioxide into deep saline aquifers as part of a carbon capture and storage strategy. It’s a proof-of-concept project to show geologic storage of carbon dioxide is a viable alternative in areas where injection into depleted oilfields, like in the WeyburnMidale project, is not a viable option. While the principle destination for carbon dioxide captured by the new carbon capture unit is the Cenovus-operated Weyburn unit, Aquistore is a backup strategy as well as a substantial research project. The capture plant itself is complete, on time and on budget, according to Premier Brad Wall, who spoke to Pipeline News on Mar. 6 while in Washington promoting the carbon capture project. He noted there have been delays in completing the refurbishment of the power plant. The project itself consists of the two

deepest wells in Saskatchewan, at 3,400 and 3,396 metres. They drilled in 2012, two kilometres west of the power plant. They go right to the Precambrian basement of the sedimentary column. One is an injector, and the second well, about 100 metres adjacent, is an observation well. Both have substantial instrumentation. The area is also surrounded by a permanent seismic array installed for regular monitoring. A spur pipeline connects the injection well to the carbon dioxide pipeline that runs from the Boundary Dam Power Station south of Estevan to the CO2 manifold near the Cenovus Goodwater plant. Kyle Worth is the senior project manager of the Aquistore project, which has been administered by the Petroleum Technology Research Centre (PTRC). On March 13 he spoke with Pipeline News via phone about where the project is at right now. Essentially, it’s now a waiting game, waiting for carbon dioxide to be captured and then delivered. X Page A29

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707,305, 5,>: (WYPS Éş Page A28 “In the past fall we completed all of our monitoring installation and collected our baseline monitoring data,â€? he said. That included gathering baseline information on groundwater and soil gas long before any CO2 is injected into the ground. Other instruments like tiltmeters and global positioning systems are also being used to look at potential surface deformation. These devices are so sensitive, they can observe changes in elevation as a result of seasonal freeze/thaw cycles. As for seismic surveys, they’ve got that covered, and then some. “We just took a VSP, a vertical seismic profile. That was shot in October,â€? he said. “We had sensors down the well, in addition to our permanent seismic array and digital acoustic system, or DAS. We had three receivers, all active.â€? The permanent seismic array is a 2.5 by 2.5 kilometre grid of 630 geophones, centred on the wells. Of those, 50 are continuously collecting data, and must be serviced with data downloads and battery swaps once a month. That data is then analyzed and interpreted. Another open house is planned prior to injection of CO2. This will provide information to the stakeholders of baseline results before injection begins, Worth said. As for when that is expected, he said late summer to fall. “The wells are completed and ready to receive CO2,â€? he said. Substantial work on the pipeline was done late last fall, and is expected to be completed early this spring. The pipeline belongs to SaskPower. Indeed, the wells too now belong to SaskPower, with ownership having been transferred over to the Crown corporation in December. “That was always our intent. We do not want to own or operate wells,â€? Worth said. “It was a contract for PTRC for the transfer of assets. Our responsibility is to take care of the monitoring aspects of CO2.â€? Asked about the delay, Worth said it is all relative. From a science perspective, he noted, “We get a better quality baseline set (of data). “We’re there as a contingency and a buffer.â€? That includes receiving CO2 when Cenovus cannot take it due to maintenance issue or plant shut downs, without having to vent captured carbon dioxide to the atmosphere. They can also receive “off-specâ€? CO2, Worth noted. The overall goal is to sell as much CO2 to Cenovus as possible, he added.

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„ By Brian Zinchuk Carnduff – Almost everyone in the entire school is wearing green. Kids have foam watermelons on their head. The principal is in a jersey, as are many of the teachers. There, at the front of the gym are two players from the 2013 Grey Cup team who just happened to spend the last few weeks working as swampers, moving drilling rigs. What do you, a kid, ask? The questions the students at Carnduff Education Complex on March 14 were priceless. They had the privilege of having Woodny Turenne and Kory Sheets, 2013 Grey Cup MVP, come to their school. Both had spent the past several weeks working with Fast Trucking as swampers, moving drilling rigs.

The first group was Grades K-6, and the second was Grades 7-12. Sheets did most of the talking. Here’s a sampling from the younger kids: Question: How many goals did you get? Sheets: Goals? I scored two touchdowns in the Grey Cup and 13 this season. Question: What’s your favourite colour? Sheets: You’re not going to believe it, but my favourite colour is green. When I found out team I was going to be playing for wore green, I was super happy! Question: Are you better at baseball or hockey?

Sheets: Actually, I’m better at baseball. Question: I really like the Roughriders! Sheets: Don’t we all? Question: How old are you? Sheets: I’m 28, but my birthday is March 31st and I will be 29. Question: How long have you been playing football? Sheets: Woodny and I have been playing football since we were sevenyears-old. Question: What was your worst injury? Turenne: I had a broken collarbone and my right shoulder. Sheets: I tore my Achilles tendon, and that had me out for a whole season. Question: How many goals did you score? Sheets: We score touchdowns in football. (chuckles) Question: Where do you guys live? Sheets: Me and Woodny both live in Florida right now. He lives in Fort Lauderdale, and I live in Tampa, about four hours away. Question: What’s your favourite thing to do in baseball? Turenne: For me, hit home runs. Sheets: I’m really fast, so stealing bases. Question: My mom is here! Sheets: Where is she? Same questioner: Say hito my mom! Question: What’s your favourite thing about being a Roughrider? Sheets: My favourite thing about being with the Roughriders, and I’m pretty sure Woodny would agree with me, it has to be the fans. The fans are amazing. I’ve met fans that travelled

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from B.C. to Hamilton and drove, and that’s across country. That’s amazing. Question: What was your dream? Sheets: My dream was to play in the NFL. Before I came to the CFL, I played in the NFL. I had an opportunity to play, and now I figured I have a better shot and opportunity to play, so I have to follow my heart and follow my dreams. Question: How far can you throw the ball? Sheets: Not very far. That’s why I carry the ball and run with it. Question: What is the hardest team you’ve ever played? Sheets: I would say Winnipeg, but we all know they are horrible. Probably Calgary or B.C. Question: How fast can you run? Sheets: That’s a hard question. I’m not sure, but I’m pretty sure I could beat you, little guy! Question: Do you play hockey or baseball in the winter? Sheets: Probably curling. I enjoy curling in the off-season. Question: When did you decide to be a football player? Sheets: I would say in high school I made my choice. Turenne: Mine came at the same time. Question: How many MVPs have you got? Sheets: One, this is my first and only one, and I was proud to get it. Question: Did you get to meet the prime minister at the Grey Cup? Sheets: No, not at the Grey Cup, but at the party the night before. He had some great stories. I wish I could tell you, but we don’t have time. X Page A31

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707,305, 5,>: (WYPS W Page A30 Question: What does it feel like to get hit? Sheets: Oooo‌ sometimes it hurts, but other times it’s like walking into a wall. You get up and do it again. Question: If you weren’t with the Roughriders, what team would you want to be with? Sheets: In the CFL? Nobody! Definitely not the Bombers, or Calgary, or Edmonton. This is the best team in the CFL. A little later, the older kids had their chance. Here are some of their questions: Question: How fast can you run? Sheets: How fast can I run? Turenne: Light him up. Sheets: You wanna race? Come up here. We’re going to race from here to there. Ready? Get set. Go! Sheets fakes a start, but then they restart, and Sheets leaves the boy in the dust. Question: When did you come to Carnduff? Sheets: I came February 27th, and you came? Turenne: February 2nd. Sheets: You want to know why? Same questioner: Why? Sheets: Because you can’t pay bills with hugs. Question: If you guys weren’t football players, what would you have been? Sheets: Hmmm. That’s a difficult thing, I hope I don’t have to think about it until far from now. Same questioner: What would you be though? Sheets: My dream would be to open up a restaurant or lounge, so I would probably do that. Turenne: A lawyer or something. Teacher: Kory, you went to Per-

due, right? What degree did you get? Sheets: I got an OLS degree, it’s kinda of like business management, without all the math. Turenne: I went to the University of Louisville. I bachelored in criminal justice. Sheets: Nice‌ Question: Who’s the best player on your team? Sheets: On the Roughriders? Outside of Woodny? I would say Darian Durant. Question from same girl who asked why they came to Carnduff, reacting to Sheets talking about going to Oakland: Ahem. Sheets: You don’t like that? Same girl: No. Sheets: Why? Same girl: Because I like the Riders! Sheets: What’s your dream? Same girl: I don’t know. Sheets: You don’t have a dream? Same girl: I had one last night! Sheets: Playing in the NFL, that’s my dream! Question: What’s the weirdest thing you’ve ever signed? Turenne: Keep it PG-13 Sheets: This past February, I signed a guy’s bald head. I signed a pregnant lady’s stomach, and, a dog. Question: How did you feel the morning after the Grey Cup? Sheets: (to the biggest laughter of the day:) Drunk! Question: How did you end up in Carnduff? Sheets: Our friend Carlos Thomas was working on an oil rig in Weyburn. Turenne: He met a guy with Fast Trucking, and he told us to come out here, and here we are!

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Tremcar West Inc. offers our customers a certified repair shop with qualified workers specializing in:

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Helping out the little guy swamped in administrative tasks Arcola – Lisa Boulet has a fair bit of experience in oilfield administration, so she decided to go out on her own and launched High Energy Administration on Feb. 1. “Basically, what I want do to is the admin end of the oilfield,� she said, meeting at a coffee shop in her base of operations in Arcola. The service is geared to “independent guys and consultants, battery operators,� she said. Two of her current clients are one-man operations. Another is a four-person welding shop in Arcola. “I’m trying to stick to small businesses,� Boulet said. “These are busy, busy guys. “I’ve grown up in the oilfield,� she said, noting a childhood of cleaning shacks. “My parents owned a business in Estevan called Topline Rental. It was wellsite trailers for drilling rigs. My ex-husband is a consultant.� This lifetime of experience provides a good base of knowledge about what goes on in the business. “I give those people

all the credit in the world. There’s horrific winters, and heat in the summer. They work their butts off to make that money,� she said. And therein is the conundrum for many small outfits – getting paid. Depending on who you talk to, online invoicing systems like OpenInvoice can be a blessing or a curse. If your client requires you to use this process, you can’t just send in a faxed paper invoice. You follow the system, or you don’t get paid. “It actually streamlines the process. It is definitely geared to someone with an administration background. It’s a completely different world,� she said. “It makes it easier for head offices and accounts payable. Everything is going to the cloud. If you’re not tech savvy, it’s confusing.� The clientele she works with often run their business from their 4x4. “Most are running laptops in their truck. That’s what I’m trying to do – make this process a little bit easier

Lisa Boulet just launched High Energy ĚžĹ?ĹśĹ?Ć?ĆšĆŒÄ‚Ć&#x;ŽŜÍ• ĨŽÄ?ĆľĆ?Ĺ?ĹśĹ? ŽŜ ŚĞůƉĹ?ĹśĹ? Ć?žĂůů ŽƾĆžĹ?ĆšĆ? ŏĞĞƉ ƚŚĞĹ?ĆŒ ĂĚžĹ?ĹśĹ?Ć?ĆšĆŒÄ‚Ć&#x;ǀĞ ĹŻĹ?ǀĞĆ? Ĺ?Ĺś Ĺ˝ĆŒÄšÄžĆŒ Ć?Ĺ˝ ƚŚĞLJ Ä?Ä‚Ĺś ĨŽÄ?ĆľĆ? ŽŜ ƚŚĞĹ?ĆŒ Ç Ĺ˝ĆŒĹŹÍ˜ Photo by Brian Zinchuk

to get paid,� she said. “I’m creating invoices, sending it to a consultant, he stamps it with his AFE info, I receive that stamp and put it in OpenInvoice.� It’s common, she noted for companies to take up to 90 days to pay. “A few companies are really good. Others are really bad,� she said. “I know they don’t have time for this. I was married to a consultant. Being in the field every day, you can fall behind for months on invoices.� The invoicing then often falls to those independent operator’s wives. “When he (her former husband) started,

I would do his books, and learned the process myself,� she added Boulet has a diploma in office administration from the Academy of Learning. She worked at Lonestar Vacuum’s Carlyle office. “I was there for a year-and-a-half,� she said, before starting her own outfit. “I don’t want to be classified as a bookkeeper. I want to do all aspects of administration – invoicing, insurance, safety ticket tracking. “I’ve got enough (business) to keep me

busy, but I would like to pick up some more independent guys,� Boulet said. That’s in keeping with her nature. “I want to be my

own boss. I want to make my hours. I would rather live and work than work and live. I’d rather work around my two kids,� she said.

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6XSHUPDQ KDV ; UD\ YLVLRQ EXW %XOOVH\H KDV WKHUPDO YLVLRQ Carnduff – What if you could see what you can’t see? The human eye works in the visible spectrum. However, there is so much more to see, if only you had the capabilities – X-Rays, ultraviolet, infrared. It turns out being able to see in infrared opens up a whole new world in the oilpatch, and that’s one that Bullseye Thermal Detection of Carnduff is aiming to cash in on. Infrared is electromagnetic radiation with longer wavelengths than visible light. It allows heat differences ^Ä?ŽƊ Ĺ?Ĺ?ŜĞLJ ƉŽĹ?ŜƚĆ? Ä‚ ĆšĹšÄžĆŒĹľÄ‚ĹŻ Ĺ?žĂĹ?Ĺ?ĹśĹ? Ä?Ä‚ĹľÄžĆŒÄ‚ Ä‚Ćš Ä‚ to be seen, and thus infrared cameras are often referred Ä?ĆľĹ?ĹŻÄšĹ?ĹśĹ?͘ dŚĞ ŜƾžÄ?ÄžĆŒ ŽĨ ĂƉƉůĹ?Ä?Ä‚Ć&#x;ŽŜĆ? ƚŚĹ?Ć? Ĺ?ŜĨĆŒÄ‚ĆŒÄžÄš to as thermal imaging. Ĺ?žĂĹ?ÄžĆŒ Ä?Ä‚Ĺś ĚŽ Ä‚ĆŒÄž Ä‚ůžŽĆ?Ćš ĹŻĹ?ĹľĹ?ƚůĞĆ?Ć?͘ WŚŽƚŽ Ä?LJ ĆŒĹ?Ä‚Ĺś Ĺ?ĹśÄ?Ĺšƾŏ Scott Bigney is the man behind lens with Bullseye. “I subcontract through Courage,â€? he said, referring to Courage Oilfield Services of Oxbow. Working with them allows Bigney to “stay in baloney sandwiches until my business is strong enough. I’m the rental manager at Courage, looking after catwalks, light plants, bathrooms,â€? as he puts it. “I grew up in Oxbow,â€? he said. Bigney worked at Schindel and Bazin, TS&M, and MRC Midfield in Estevan over the years. His farm is eight miles south of Carnduff. As for thermal imaging, Bigney said, “I got into this around Christmas of • Invoicing • WCB Management 2013. It had been a year of research, looking into the different aspects of what • Data Entry • Payroll it can do, not just finding gas, but house inspections and equine thermography.â€? • Equipment tracking • File Management He explained that a horse can’t tell you where it is feeling sore, but by takregistration & insurance • Business Travel ing a series of thermal pictures of it, you can identify sore muscles, pinch points • Safety Management Arrangements and abscesses. The key tool is the thermal imaging camera, a FLIR GF 320. The “GFâ€? is Leslie Boulet • ph: 306.577.9089 for gas finding. As an acronym in military parlance, FLIR means forward lookleslieboulet@me.com • www.highenergyadmin.com ing infrared, and has been used on military aircraft and tanks for decades. X Page A35

707,305, 5,>: (WYPS W Page A34 In this case, FLIR is the company name of the manufacturer. Their products varied broadly from sentry infrared cameras mounted on towers along national borders to firefighter handheld devices used to search smoke-filled buildings for people. Indeed, Bigney has a refurbished firefighter-style unit as a backup. Bigney took the imager out of its protective case and fired it up. It took several minutes to get up and running, producing a characteristic whine. It looks like an eight millimetre video camera from the 1990s, roughly the size of one of those cameras, and comes with a flip out screen and eyepiece. “It takes six minutes to cool the innards to -273 Celsius,� he said, pointing to the readout on the screen as its electronics became super-cooled. “That’s why it’s my Ferrari,� he said, only half in jest. The price of this imager is roughly equivalent to the most expensive, tricked out one-tonne dually pickup you can get at a local automotive dealership. The additional 4x lens cost as much as a 20 foot enclosed snowmobile trailer to pull behind that dually. That makes for a pricey camera. But its abilities are what sets it apart. Remember all the references to “colourless, odourless gas� you hear in safety courses? This camera can see them escaping. “You can see the gas coming out,� Bigney said. FLIR’s website notes the GF 320 can visualize gas leaks in real time. It is fully calibrated for temperature measurement applications. There’s embedded GPS data in reporting. You can inspect without interruption of process, thus considerably reducing inspection time. It traces leaks to source. One can spot leaks close by or meters away. Finally, it can be used for verification of repair, i.e., is it still leaking after you put it all back together and reactivated the system? The Saskatchewan government has been enacting stricter venting and flaring regulations, meaning companies are going to have to bring their oilfield facilities into compliance. That’s precisely the market Bigney is targeting – doing third party audits or inspections. “It allows oilfield companies to be proactive,� he said. As an example, he noted, “When a flare is burning, if it’s not hot enough, it’s not burning all the hydrocarbons. The hydrocarbons stay tightly together for 200 to 400 yards before dissipating. There’s long plumes you don’t see. “I can record (video) and take pictures,� he added. The imager will take a digital visible (i.e. normal) picture at the same time as the thermal one, so a person can see what the scene looks like to the naked eye. The GF 320 has different modes, including white-hot and black-hot black and white as well as false colour. It can detect 28 different gasses, including propane, benzene, ethylene, ethanol and methane, to name a few. In specific oilfield applications, it can be used in battery turnarounds, inspecting valves, flanges, tanks and thief hatches. The facility can be searched for fugitive emissions. “It looks like smoke in the camera,� he said. “For a gas plant, every dollar put into thermography, there’s a four dollar return in gas going down the line.� He’s been talking to gas plants about doing inspections.

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Beyond gas detection, the possibilities are almost endless, according to Bigney. “When you see what you can do, and start thinking about it, i.e. I wonder if it can do this, or that?� When mechanical devices fail, they often heat up before finally seizing up or breaking. That leads to all sorts of preventative maintenance applications. “You can even use it for pumpjack bearings or drawworks on drilling or service rigs,� he said. “The applications are endless. There’s stuff we’re finding every day. You can see tank levels from outside. My wife bugs me it’s a fancy stud finder.� When doing renovations on a building with in-floor heat, there’s always a worry one might pierce a line when disturbing the concrete. With the thermal imager, Bigney said, “You can see in-floor heat lines. You can even see line breaks. I can pinpoint there that line is.� On building inspections, it can’t see mould, but it can find moisture. Typically where there’s moisture, there’s mould. “Moisture alerts can be set on the camera, and tell you of the possibility of moisture,� he said. As noted before, this technology has military origins, so much so that Bigney said, “I had to sign paperwork that I’m not going to make nuclear weapons.� It’s considered an arms export. Superman’s X-ray vision may have given him an edge, but when it comes to the oilfield, infrared may be where it’s at.

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Redvers – Ironrider Oilfield Services of Redvers does a little bit of everything, from a crew truck to battery operating, and vac trucks and steamers. “I’ve been in contract battery operating in Redvers since ’93,� said Phil Jacobson, owner. Ironrider came about from the purchase of the assets of an existing business. “I bought out Hansen Steamers. That was October 2011. It was two vac trucks,

two steamers and some odds and ends.� He also bought a crew truck with a knuckle boom picker. It’s used for anything and everything. The steamers have been busy with a cold winter. Jacobson still runs a contract battery operating business, with eight battery sites in the Carlyle and Redvers areas for three different oil companies. Ironrider employs seven people full-time and two part-timers, plus Jacobson himself. His son Phillip, jr. works with the firm. Two other sons work in the oilpatch as well, with Joe Jacobson at Ensign as a toolpush and Marty is a journeyman welder with Mosaic at Belle Plaine. As for Phil Jacobson himself, who is 59, he said, “I grew up in Midale. My first job in the patch was for Jerry Mainil for the summer, then off to Alberta for

odds and ends.â€? His work was strictly maintenance and pipeline work, including some Midale outfits. He was a crew foreman for Schindel and Basin for five years, ending in 1983. “Then I moved to Midale and worked briefly with Kurtz Construction for about a year,â€? he said. From 1988 to 1993 he was a crew and pipeline supervisor for Gary Ness Construction of Midale. He was approached by Al Biette and hired to run wells around Redvers. “I went through 12 (oil company) name changes on that outfit before I lost the contract,â€? he said. As for getting into vac trucks and steamers, he said, “It wasn’t a deep thought thing. I’ve thought that, too. I did it more for an investment. I also have seven houses in town I rent out. ɸ Page A37

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707,305, 5,>: (WYPS W Page A36 “I got into housing before prices went up. I went to an auction for a couch and bought a house. I couldn’t refuse it,� Jacobson said. Housing has tightened up considerably in Redvers since then, with many companies and entrepreneurs in the region finding they need to have housing available for their employees, or they won’t have employees. But that hasn’t really been the case for Ironrider. “One of the fellows rents a house from me. All the rest are kind of looked after,� he said. “If I wanted to bring someone in, I’d have to have a house for them. Most are local. The key is to pay them enough money so they will stay with you. “I was fortunate. One guy came from Alberta in January. He was toolpushing a service rig in Alberta. He wanted to get back to Saskatchewan. You don’t just find them, they fall onto your lap.� The vac trucks are tandem axle “body jobs,� and the steamers are single axle trucks. If you use a steamer and vac truck together, you can approximate a hydrovac, but that only happens the odd time. Steamers are their primary workhorses, while the vac trucks are secondary. “We use them for cleaning tanks and turnaround work – treaters, spills. Turning around tanks is more of a summer thing,� Jacobson said. Last year a substantial pipeline project for Enbridge passed nearby, with Surerus Pipeline as the main contractor. “We did a lot of work with Surerus Pipeline when they were here,� he said. Some of that involved washing equipment when it reached the Manitoba/Saskatchewan border. Ironrider does some fencing work and a little bit of small pipeline work. They have a 60-foot boom manlift that is used for cleaning tanks, plus a skid steer loader. “Our area is from Rocanville to Waskada, Alameda to Birtle, and to Kisbey and Stoughton in the west,� Jacobson said. “We do quite a bit in Manitoba.� Asked if he wants to get much bigger, Jacobson said, “This is big enough for me. I’m trying to keep it under 10. I’m too old for that,� he said.

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TransGas natural gas pipeline that services the Shand and Boundary Dam Power Stations. The 3.5 kilometre project was needed to make way for the new highway. A&B will continue to maintain a Regina location and is not intending on re-locating staff to Estevan. “It’s an expanding geographic footprint for us,� she said. Estevan will have three to five people working out of the office fairly soon, with field personnel fluctuating as required. “It’ll be a permanent workforce based out of there,� she said. A&B has locations in Athabasca, Bashaw, Blackfalds, Grand Prairie, Sedgewick and Calgary, Alta., and Regina and Estevan, Sask.

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temporary fence around a yard and moving in a mobile office. We have been looking to make an investment into the Estevan location to service our work in the area, including Manitoba. But the decision was accelerated when Brett Melle joined our team. We like to put down roots when people like Brett join our team.� The location is near the new Bert Baxter Transport yard, northeast of Estevan. It’s a short distance from the new truck bypass route that first saw dirt scratched this past winter. Indeed, that bypass project was the impetus behind a project they spent the latter part of February and early March working on, a re-location of an 8-inch

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UNRESERVED PUBLIC EQUIPMENT AUCTION

Estevan Consignment Sale Macoun, SK | Thursday, May 1, 2014 ¡ 9 am

2007 CAT D6N LGP

2005 CAT D6N LGP

2002 CAT 730

2004 VOLVO G740B

2006 KOBELCO SK250LC

1980 CAT 815

2009 CASE STX 485

1997 JOHN DEERE 7710

2002 KENWORTH T800

Directions: From ESTEVAN, SK, go 28 km (17 miles) West on Hwy 39 to Macoun, SK. GPS: 49.2646, -103,1904

PIPELAYERS

2008 Dodge 1500 Crew Cab 4x4, s/n 1D7HU18248S637613, SCREEN PLANTS Caterpillar D4E Crawler, s/n 51X01181, Midwestern D4EX Nordberg CV-40-D 6 Ft x 7 Ft 4 In. 2 Deck Portable, s/n 5.7 litre, A/T, fuel tank w/pump. 2006 Ford F350 Super Duty Crew Cab 4x4, s/n 1FTW20 ft boom, Midwestern hyd conversion. 1866, John Deere 3 cyl, diesel, S/A chassis. W31P46EA30880, V8, diesel, A/T, fuel tank w/pump. CRAWLER TRACTORS WINCH TRACTORS 2005 Ford F350 XL Super Duty Crew Cab 4x4, s/n 1FTWCaterpillar D8N, s/n 5TJ01069, A/dozer w/tilts, cab, 4 bbl Kenworth LW900 T/A, s/n 2NKWLB0X6GM916221, W31P55EB46345, 6 litre, V8, diesel, A/T, fuel tank w/pump, MS ripper. Caterpillar 3406, 6 spd, 4 spd aux, dbl di lock, spring susp, toolbox. Cat D7R XR Series II, s/n AGN00521, A/dozer w/tilts, A/C 246 in. WB, lowboy ramps, live roll, winch. Ford F350 XLT Super Duty Crew Cab 4x4, s/n 1FTScab, 2 bbl MS ripper, sweeps. TRUCK TRACTORS W31P04EC50125, diesel, A/T, fuel tank w/pump. Cat D7R XR Series II, s/n AGN0596, A/dozer w/tilts, A/C 2005 Sterling L9500 T/A, s/n 2FZHAZCK05AN75523, 2008 Ford F250 XLT Super Duty 4x4, s/n 1FTNcab, 2 bbl MS ripper. Detroit Series 60 515 hp, eng brake, Eaton Fuller 18 spd, A/R cab, F21568EB99757, 5.4 litre, V8, A/T, fuel tank w/pump, h/r, toolbox. 2007 Caterpillar D6N LGP, s/n CAT00D6NEALY03203, 6 A/R susp, 16000 lb frt, 46000 lb rears, 200 in. WB, alum wheels, 2005 Chevrolet 3500 Crew Cab 4x4, s/n way dozer, A/C cab/canopy, MS ripper, SystemOne U/C. wet kit, PTO, sliding 5th wheel, toolbox, grill guard. 1GDJK34215E163578, 6.6 litre, diesel, A/T. 2005 Caterpillar D6N LGP, s/n ALY01658, 6 way dozer, A/C Kenworth T800 T/A, s/n 1NKDLU9X72J966101, Caterpillar 2007 Chevrolet 2500HD Crew Cab 4x4, s/n 1GCHcab, 1 bbl MS ripper, sweeps. C15, 430 hp, eng brake, Eaton Fuller RTL016913A, A/R susp, 12000lb K23D77F150461, 6.6 litre, diesel, A/T, storage topper w/ SKID STEER LOADERS frt, DSP40P rears, 224 in. WB, alum frt, wet kit. rolling tool bed. Case 1845C, s/n JAF0249823, bkt, cab, 12-16.5. Kenworth T800 T/A, s/n 2NKDLB9X1JM920386, Caterpillar 3406, 425 hp, eng brake, Eaton Fuller RT015618P, spring susp, 2006 Chevrolet 2500HD LS Crew Cab 4x4, s/n Case 1845C, s/n JAF0144208, bkt, aux hyd, cab. John Deere 5575, s/n M05575X030327, Q/C bkt, aux hyd, cab. 12000 lb frt, 46000 lb rears, 210 in. WB, alum frt, wet kit, 1GCHK23276F116372, 6.6 litre, diesel, A/T. 2005 GMC 2500HD SLE 4x4, s/n 1GTHK24U65E163462, lowboy ramps. MOTOR GRADERS 5.7 litre, V8, A/T. WATER TRUCKS John Deere 772CH Series II AWD, s/n DW772CH594250, 2007 Nissan Titan Crew Cab 4x4, s/n 1N6AA07B97N210180, Kenworth W900 2975 Litre T/A, s/n 896071C, Cummins, PB, 14 ft MB, A/C cab, 17.5R25, multi shank ripper. V8, A/T. Volvo G740B, s/n 036112, V-plow, 14 ft MB w/ext, LoPro A/C exhaust brake, 6 spd, spring over beam susp, 224 in. WB, PTO, 2 0 07 N i s s a n T i t a n C re w Ca b 4 x 4 , s / n alum frt, 1985 Advance tank. cab, 17.5R25. 1N6AA07B47N204626, V8, A/T.

HYDRAULIC EXCAVATORS

MECHANICS TRUCKS

2006 Caterpillar 330CL, s/n CAT0330CJDKY04507, Q/C cleanup bkt, A/C. 2005 Caterpillar 330CL, s/n CAT0330CHDKY03968, hyd Q/C, A/C. 2005 Caterpillar 330CL, s/n CAT0330CEDKY03656, Q/C cleanup bkt, A/C, pos air shuto. Caterpillar 330CL, s/n CAT0330CEDKY01597, Q/C cleanup bkt, A/C. 2007 Hitachi ZX270LC-3, s/n FF01V4Q030825, Q/C bkt, A/C. 2005 John Deere 330C LC, s/n FF330CX804410, Q/C cleanup bkt, A/C. 2006 Kobelco SK250LC, s/n LL09U1221, Q/C cleanup bkt, 2 aux hyd, A/C. 2006 Kobelco SK250LC, s/n LL09U1220, Q/C bkt, 2 aux hyd, A/C.

Ford F450 XLT Super Duty, s/n 1FDXF46F3XEA12880, 7.3 litre, diesel, 5 spd, spring susp, General 11 ft service body, Liftmoor 3200 3 sec 14 ft crane.

ARTICULATED DUMP TRUCKS

FLATBED TRUCKS 2005 Chevrolet 3500 Silverado 4x4, s/n 1GBJK34285E208170, 6.6 litre, diesel, A/T, spring susp, 10 ft 6 in. bed. 2005 Chevrolet 3500 Silverado 4x4, s/n 1GBJK34265E206207, 6.6 litre, diesel, A/T, 10 ft 6 in. bed. 2011 Dodge 4500 4x4, s/n 3D6WU6EL6BG500841, Cummins 6.7 litre, diesel, 6 ft 2 in. bed. 2006 Ford F350 XLT Super Duty 4x4, s/n 1FDWF37P36EC92909, 6 litre, 8 cyl, diesel, A/T, 10 ft bed, fuel tank, 6 toolboxes. Ford F350 XLT Super Duty Crew Cab 4x4, s/n 1FTSW31P94EC04941, V8, diesel, A/T, spring susp, 8 ft 6 in. bed.

MOBILE STRUCTURES

2007 TA Structures 12 Ft x 60 Ft Double-Ended Eng/Eng Wellsite, s/n TAM-SER21-L607, self-contained, skd mtd, 2 bedroom, 2 washroom, central vac, central a/c & heat, 2 fridges, 2 ranges w/ ovens, 2 microwaves, washer and dryer, 4 TVs, BBQ, leather couch, propane water heater, 2 propane tanks. 2007 TA Structures 12 Ft x 60 Ft Double-Ended Eng/Eng Wellsite, s/n TAM-SER17-L607, self-contained, skd mtd, 2 bedroom, 2 washroom, central vac, central a/c & heat, 2 fridges, 2 ranges w/ ovens, 2 microwaves, washer and dryer, 4 atscreen TVs, BBQ, leather couch, propane water heater, 2 propane tanks. 2007 TA Structures 12 Ft x 60 Ft Double-Ended Eng/Eng Wellsite, s/n TAM-SER09-K607, self-contained, skd mtd, 2 bedroom, 2 washroom, central vac, central a/c & heat, 2 fridges, 2 ranges w/ ovens, 2 microwaves, washer and dryer, 4 atscreen TVs, BBQ, leather couch, propane water heater, 2 propane tanks. 2007 TA Structures 12 Ft x 60 Ft Double-Ended Eng/Eng Wellsite, s/n TAM-SER04-J607, self-contained, skd mtd, 2 bedroom, 2 washroom, central vac, central a/c & heat, 2 fridges, 2 ranges w/ ovens, 2 microwaves, washer and dryer, 4 atscreen TVs, BBQ, leather couch, propane water heater, 2 propane tanks. 2007 TA Structures 12 Ft x 60 Ft Double-Ended Eng/Eng LOWBOYS Wellsite, s/n TAM-SER28-J807, self-contained, skd mtd, 2 Arnes 206-1285-03 T/A Single Drop, s/n bedroom, 2 washroom, central vac, central a/c & heat, 2 fridges, 2A9124522HA003504, spring susp, 24 ft x 9 ft deck, 4 ft 2 ranges w/ ovens, 2 microwaves, washer and dryer, 4 atscreen beavertail. TVs, BBQ, leather couch, propane water heater, 2 propane tanks. Aspen LB50 50 Ton Tridem Double Drop, s/n 2A9LB5032RS037162, A/R susp, hyd detach neck, ip-up BELTED AGRICULTURAL TRACTORS neck ext, 22 ft 6 in. x 10 ft deck, 4 ft beavertail. 2009 Case IH Steiger 485QT, s/n 79F113541, Degelman Aspen Tridem Single Drop, s/n 2A9125332RA003277, 7900 6 way dozer, 16 spd powershift, 4 hyd outlets, 30 in. tracks. A/R susp, 24 ft 6 in. x 9 ft 6 in. deck, 4 ft beavertail.

JEEPS

MFWD AGRICULTURAL TRACTORS

John Deere 7710, s/n R0T7710014125, ldr w/bkt, quad Aspen JT35 T/A, s/n 2A9JT3520RS037203, A/R susp, range LH rev, A/C cab, 3 hyd outlets, 540/1000 PTO, 3 pt hitch, hyd 5th wheel. rear weights, 16.9x28 F, 20.8R38 R.

OILFIELD FLOATS

Columbia 40 Ft x 8 Ft 6 In. T/A, s/n SV33112, spring susp, live roll, 63173 km. Willock 25 Ton 40 Ft x 8 Ft 6 In. T/A, s/n 8822, spring susp.

Caterpillar 730 6x6, s/n CAT00730KAGF00692, heated PICKUPS box, 23.5R25. 2012 Dodge 1500 Crew Cab 4x4, s/n 1C6RD7PT7CS134542, BOTTOM DUMP TRAILERS 2007 Terex TA30 Generation 7 6x6, s/n A8941136, Cummins 5.7 litre, A/T. Decap 32 Ft T/A, s/n 2D9DS3B36WL017422, spring susp, QSM11, 350 hp, A/C, heated box, 23.5R25. 2009 Dodge 1500 SLT Crew Cab 4x4, s/n 2 hoppers, roll tarp. COMPACTORS 1D3HV13TX9J529762, 5.7 litre, A/T. Caterpillar 815 Soil, s/n 91P02107, S/dozer, 37 in. drum, 2008 Dodge 1500 Crew Cab 4x4, s/n 1D7HU18298J200356, For complete list of details visit: 5.7 litre, A/T, fuel tank w/pump. cab, Caron wheels.

Chris McIsaac, Industrial Territory Manager South Saskatchewan

306.737.9151 cmcisaac@rbauction.com Auction Company License #303043 & 309645

Call now to consign. rbauction.com | 800.491.4494

PIPELINE SECTION B NEWS Kramer sells hydrovacs to oilpatch April 2014

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„ By Geoff Lee Regina-based Kramer Ltd. has relocated its North Battleford Cat dealership to a new facility in Battleford. The new 40,000 sq. ft. centre opened on Jan. 27 with a grand opening planned in September to help celebrate the company’s 70th year of business in Saskatchewan. Tim Kramer, president and CEO, expects 2014 will be another year of growth for the company and its seven locations in Saskatchewan. Kramer spoke with Pipeline News about his company’s construction equipment division and prospects for the Battleford dealership. He is excited to introduce a new line of advanced hydrovac trucks by Premier Oilfield Equipment Ltd. to oilfield customers including those in the Battlefords. PN: How would you describe the initial customer reaction to the opening of your new location in Battleford? Kramer: Well, we haven’t been there long enough, but I think customers understand what we’re trying to do. Construction’s been going on for a year and a half, but my impression is anytime a Cat dealer puts up a facility of that size and that quality, customers take notice. I think our customers recognize we’re out there

to support them. PN: Will you have any new oilfield equipment for sale at the Battleford dealership? Kramer: Caterpillar has teamed up with a really fantastic hydrovac company out of Colorado. It’s called Premier Oilfield Equipment Company. We’ve sold three of these trucks already in one year. The Cat CT660 hydrovac trucks are a great set of wheels – they are sitting on tri-drives. They are very high tech vac trucks. Kramer Ltd. right now is carrying the next generation of hydrovac trucks. We are very happy with the quality. Everything sold before we even had them on the ground. We’ve got two more coming and we suspect they will both be sold before we get them. The new hydrovac units have been very successful. PN: Is this the first time you have gotten into the oilfield equipment market? Kramer: It’s the first time Kramer Ltd. has been in the hydrovac market. Folks at my end dragged me kicking and screaming into the market. Now they’re smart and I’m not so smart! PN: Are you excited to learn Husky Energy recently announced a couple of new heavy oil SAGD projects north and west of the Battlefords? Kramer: They need to do a lot more SAGD, not less! All that heavy oil stuff is going to be

Used 2013 Peterbilt Body Job & Stiff Pole Pup unit has aluminum 22cu, 407 tank & comes with an aluminum 22cu, 407 stiff pole pup. In stock ready to wok.

2006 - 2013 new & used fuel super b’s In Stock

New Doepker Bulkers, super B’s, Tridems and Tandems In stock

1974-2007 Code & Non Code 34 cu - 38 cu tridems. In stock

New & used Heil & Tremcar. 2 & 3 compt, 407 code, super b’s. In stock

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good for us. Battleford is the right place to be – it’s centrally located. We went in there as an original agriculture business. Of course, the second we put up a shingle we just get people coming out of the woodwork from trucks to heavy construction to oil and gas – everybody’s been rolling out there. We’ve been very fortunate. PN: Is the oil and gas sector becoming one of your biggest customers in the Battlefords? Kramer: Absolutely. If you just drive around the Battleford area itself and have a look, you’ll see how many people are building tanks – and the whole infrastructure behind the oil and gas business is really coming on. It’s kind of interesting how it’s spreading away from Lloydminster coming in this direction. PN: Aside from oil and gas activity where else do you see sales potential for construction equipment in the Battlefords? Kramer: The whole Battlefords area has always been pretty stable. We’ve always had really good success in that area. It’s just another level of convenience. Plus, we also do a lot of business in the pipeline business with the big boys – the 36-inch pipe. They are looking for overhauls. They like what we deliver to the marketplace. X Page B2

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' V ' JUDGHUV DQG H[FDYDWRUV SRSXODU W Page B1 Instead of having them cost shipping equipment all the way from Edmonton and Calgary to Regina, we’re able to ‘cut them off ’ in Battleford and save them some money. PN: Would you describe your marketplace as covering Western Canada? Kramer: No, it really is western Saskatchewan. That’s really our focus. Much of our business is personally related. We have a very good profile in the pipeline business. They like use because we take care of what their needs are and go above and beyond to help them successfully complete their projects. So by doing they reward us. We also have a very good customer base in Lloyd. We are very lucky. PN: Are you looking forward to a final decision on the Keystone XL pipeline to generate more business?

Kramer: I don’t think I’m that young! We geared up last year for it and of course, it fell through. We have the potential to gear up for it this year, but I’m not comfortable with the latest Nebraska kerfuffle. PN: What type of heavy equipment push happens during spring breakup? Kramer: Everyone will bring equipment in to overhaul during spring breakup. As soon as road bans come off, they have to get it all back out again. In Saskatchewan everyone’s been in Hawaii for the last two months or Phoenix for two months or Florida for two months. Now they are coming back and saying “we’d better start getting things fixed for the spring.� There is going to be a push on this time of the year. We’re pretty fortunate. We are busy every day all year. We don’t get those lulls anymore like we used to many years ago. Even though we’ve

added thousands of square feet, as soon as we put up a building we just fill it. PN: What type of equipment do you sell the most of in the Battlefords? Kramer: That’s oil and gas so that’s D6s and D8s and some scrapers. You have to have graders and excavators are very popular. In the oil and gas side, it’s usually lease work. There’s a tremendous amount of lease work – lease and road maintenance for the leases plus the collector lines. We also sell motor graders to the RMs (rural municipalities). The RMs are big customers especially up there. Because the roads are pounded out more they usually buy larger graders than the norm. They order them throughout the year. There will be a selection of wheel loaders, backhoe loaders, skid steers, motor graders, dozers and excavators and dozers. PN: How will you celebrate Kramer Ltd.’s

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70th anniversary in Battleford? Kramer: We will celebrate with the opening of the facility in Battleford. We are going to buy all our customers a snack – maybe give them a beverage. September is the month for kickoff. PN: What’s been the secret to your success over those seven decades? Kramer: First of all it’s been people, product and facilities. There has

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to be a lot of trust and understanding. I think our customers really trust us. When they have a concern they can always come to us. We always have a way of figuring it out. We’re there when they need us. Plus, we are vertically integrated so we keep everything pretty much in-house. We don’t send things out so we don’t lose that control and quality. In the process, our customer both save and make money. When it comes to what’s driving our success, many segments (of the market) make up the whole. There is nothing overly dominate. PN: Do you have any further expansion plans in 2014? Kramer: We just relocated our Kramer Rents – The Cat Rental Store in Regina to 2351 Albert Street north. We are moving our truck

facility down to new Kramer Rents location. It’s just a little bit east of the facility in Regina. That’s all we have planned for 2014 – the new Kramer Battleford store and the relocation of Kramer Rents in Regina. PN: How does the new Caterpillar “Built For Itâ€? campaign reflect back on your dealerships? Kramer: It’s a new theme that we just got introduced to in February by Cat in Nashville. They are really focusing on the client. Our Cat products are is built and engineered for the construction side and contractors of all types with the highest engineering standards. When it comes to helping customers get their jobs done, no matter how big or small the challenge, we can say we are “Built for it.â€? We’re Kramer. We’re Caterpillar. We’re there when you need us.

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Enbridge Line 9 to feed western oil to Quebec Calgary – Enbridge Inc.’s Line 9 crude oil pipeline running between southern Ontario and Quebec will reverse flow eastward for the second time in its history to suit market conditions. The National Energy Board has approved the flow reversal on the Line B segment from Westover Ontario to Montreal along with increasing the capacity of the line from 240,000 barrels per day to 300,000 bpd. The NEB decision follows the previously completed reversal of the Line 9A segment from Sarnia to Westover in 2013. The eastward reversal of the oil pipeline is aimed at providing Ontario and Quebec refineries with access to affordable oil from Western Canada and North Dakota. “The Board’s decision enables Enbridge to react to market forces and provide benefits to Canadians, while at the same time implementing the project in a safe and environmentally sensitive manner,� said the NEB in its decision. The line originally transported oil eastward from Sarnia to Montreal then reversed direction in the 1990s in response to changing market conditions. The NEB said the latest $110 million reversal and expansion project can go ahead provided Enbridge meets 30 conditions related to matters such as pipeline integrity, emergency response, and continued consultation. The NEB denied the company’s exemption request to begin operations when it believes it is ready. The energy regulator ruled the conditions must be met and

the pipeline inspected first. NEB’s said its decision enables Enbridge to react to market forces and provide benefits to Canadians, while at the same time implementing the project in a safe and environmentally sensitive manner. “The benefits of the reversal of Line 9B are clear,â€? said Al Monaco, Enbridge’s president and chief executive officer in a news release. “For Quebec, bringing a new, reliable supply of competitively priced crude oil to respond to the needs of Quebec-based refineries will protect more than 4,000 jobs, sustain a vibrant petrochemical industry and strengthen the economy. “For our customers, Line 9B reversal is an important component of our broader market access initiatives to open up and expand connections to key refining markets.â€? The company said it expects the approved easterly flow of oil through Ontario and Quebec will “help level the playing field for Canadian refineries, safeguard jobs, and bolster the security of Canada’s energy supply.â€? The decision on the Line 9 comes some four months after the federal regulator held public hearings on Enbridge’s proposal. During those sessions, a three-member panel heard from a wide range of parties including First Nations, environmental groups, private citizens and representatives from municipal and provincial governments. “Core to our strategy is to reduce our industry’s environmental footprint which

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Sarnia Terminal UNITED STATES OF AMERICA

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is why our first choice is always to use existing infrastructure,� said Monaco. “We’ve undertaken extraordinary steps in our consultation with

stakeholders on Line 9B – we’ve listened carefully and we’re acting on stakeholder input to address concerns and further enhance safety.�

Enbridge has been operating the Line 9 pipeline, an existing 30-inch diameter pipeline, with a current capacity of approximately 240,000 barrels per day,

safely and reliably since 1976. Line 9 currently transports offshore and foreign oil in the westward direction from Montreal to Sarnia.

Leased Ops & Company Drivers always welcome to apply.

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&DW &7 WUXFN SURZOV WKH RLOĂ€HOG Battleford – The Cat CT660 on-highway vocational truck, available from Kramer Ltd.’s Cat dealerships in Saskatchewan, is on the prowl as a hydrovac for oilfield construction. Other CT660 trucks are currently roaming the highways and back roads as dump trucks, concrete mixers, waste carriers or as all round heavy haulers. The hydrovac application for the CT660 is expected to boom since Caterpillar is now partnered with Premier Oilfield Equipment Co. in Colorado to use the Cat CT660 chassis for Premier’s CV series hydrovacs. “We’ve got a few trucks that are in the oil industry, but obviously with the new deal with Premier Oilfield, the Cat hydrovacs are becoming pretty popular,â€? said Dean Holoien, Kramer Ltd.’s vocational truck sales consultant in Regina. “So far, as of 2014, we have sold three Cat hydrovac trucks. We have three more on order that have been spoken for at this time. However, they have been moving pretty quickly.â€? The CV series has wide applications across a number of industry segments, including oil and

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gas, infrastructure, municipalities and general construction. Tristen Hydro-vac from Regina Beach purchased a Cat CT660 with a CV series hydrovac from Kramer Ltd. this year, and used it to prepare a Regina road for a culvert on its first job. The CV series is ideal for non-destructive excavation projects such as potholing, slot trenching, daylighting, and other cleaning and digging applications. “The first hydrovac truck we built last year, we put a Hi-Vac style body on it,â€? said Holoien. Hydro excavators or X-vacs for short, use stateof-the-art water pump and vacuum technology to safely locate and expose any type or size of underground utilities. “Since Cat has partnered with Premier Oilfield Equipment, we’ve been kind of going full speed ahead with the tornado style vac unit that Premier offers,â€? said Hololien. Kramer brought one of the first CT660 vocational trucks available in Canada to the 2012 Lloydminster Heavy Oil show. That CT660 unit was configured as a water truck, but the sky is the limit with its on-highway vocational applications. “When Cat launched the truck it was a class 8 vocational truck and that’s the target that they went after,â€? said Holoien. “We can spec this truck out for a great deal of applications depending on what the customers’ needs may be.â€? X Page B5

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707,305, 5,>: (WYPS W Page B4 A CT660 was used to carry members of the 2013 Grey Cup champion Saskatchewan Roughriders on a victory drive from Mosaic Stadium in Regina to the grounds of the legislature last November. The CT660 truck is now available from Kramer Cat’s new dealership in Battleford that opened on Jan. 27 on 153-acre site fronting Highway 16. That’s where Pipeline News spoke with Holoien on the phone from Regina about the new Cat hydrovacs from Premier Oilfield Equipment that Kramer Ltd. is distributing from its seven locations. “Right now our turnaround from order to delivery is pretty exceptional compared to what I’ve heard out there in the industry,� said Holoien. “Our first few trucks took just three to four months to deliver. “I know the busier we get that lead time might move a little bit but we’ve very happy

how quick we can turnaround from an order to a delivery date on this truck.� Holoien is hoping to bring one of the Cat hydrovacs to the 2014 Lloydminster Heavy Oil Show in September but show goers may have to do with a brochure. “We would like to bring a hydrovac there but we can’t order them and keep them,� said Holoien. “Everything we’ve ordered so far has been sold before it actually hits the ground. “When the first two trucks arrived our idea was to demo one in the north and one in the south. “Of course, those trucks got picked up and they were on their way before we could even do that. “As long as we’ve got some stock and inventory that’s the plan to have a hydrovac there for sure.� The 2012 heavy oil show in Lloydminster proved to be a good opportunity for Kramer

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Ltd. to introduce the CT660 to the oilfield market and generate sales leads. “We did get a lot of nibbles and a lot of questions. A lot of quotes were sent out,� said Holoien. “In our few year we did a lot of demos and we did a lot of quotes and we moved a few trucks during that first year. “The awareness has

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been picking up and over the last season here we’ve definitely moved a lot more trucks. You are starting to see more out and about on the highway. “Every truck we sell we get about four or five new calls that week. People are asking questions about it.� Holoien notes that word of mouth and the performance of the trucks is what sells

them. “That’s the big thing. With our parts and service we want to make sure that it’s a good experience for each customer.� The introduction of the hydrovac comes at a time when oilfield activity is strong throughout the province which bodes well for other applications of the CT660 in the energy industry. “I think there is a

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really good partnership here with this Premier Oilfield vac truck,� said Holoein. “I think that’s where a lot of attention is lying right now but it’s not limiting us to just the hyrdovac industry. “I think there are a lot of different applications that will work with our truck. I think the truck will be around for a long time.�

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5HY (QHUJ\ RSHQV FDPS IRU LWV ZRUNHUV „ By Geoff Lee Kerrobert – Rev Energy Services Ltd. in Kerrobert has set up its own 22 person camp for new hires as it ramps up for a potentially busy oilfield construction season after spring break up. “We’re expecting a very busy year,� said Darryl Burgardt, a project coordinator for the company’s civil construction and sandblasting and coatings divisions. “We’ve been in contact with a lot of different companies that want to use our services.� Burgardt is one of four owners including his brother Brian whom he says manages the expanding pipeline and oilfield maintenance divisions

and related equipment. “It’s kind of got to the point where we have to decline a fair amount of work because we can’t handle everything,â€? said Burgardt. The new camp will provide a local base for seasonal crews who are being hired to work on projects throughout Western Canada. “Right now, we’ve got a lot of work going on right from Fort McMurray to Loreburn, Sask. for various companies involving lots of blasting and coating,â€? said Burgardt. “We have a bunch of civil jobs coming up as far as dirt work with our trackhoes, graders, rock trucks and loaders at Ä‚ĆŒĆŒÇ‡ĹŻ ĆľĆŒĹ?Ä‚ĆŒÄšĆš ŽŜÄž ŽĨ ĨŽƾĆŒ Ĺ˝Ç ĹśÄžĆŒĆ? ŽĨ ZĞǀ ĹśÄžĆŒĹ?LJ ^ÄžĆŒÇ€Ĺ?Ä?ÄžĆ? >ĆšÄšÍ˜ Ĺ?Ĺś <ÄžĆŒĆŒĹ˝Ä?ÄžĆŒĆš Ć?ƚĂŜĚĆ? Ĺ?Ĺś ĨĆŒŽŜĆš ŽĨ Ä‚ ĹśÄžÇ ĎŽĎŽ Ć‰ÄžĆŒĆ?ŽŜ ÄžžͲ ƉůŽLJĞĞ Ä?ĂžƉ Ć?Ğƚ ƾƉ ŽŜĆ?Ĺ?ƚĞ ƚŽ ĹšŽƾĆ?Äž ƚŚĞĹ?ĆŒ Ĺ˝Ç Ĺś Ć?ĞĂĆ?ŽŜÄ‚ĹŻ Ç Ĺ˝ĆŒĹŹÄžĆŒĆ?͘ WŚŽƚŽĆ? Ä?LJ 'ÄžŽč >ĞĞ

various different locations that are on the horizon after spring breakup. “Right now, all of our work is on the road. There is no one single area that might be busier than any other.

“We’re got approximately 80 to 90 guys working for us. We are anticipating that could be up to 150.� The new camp is a five trailer unit that Rev Energy purchased

exclusively for its own employees and it comes with a kitchen and a TV lounge. Power is supplied by a generator, but it will soon be connected to existing power lines.

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“We hire a lot of guys from out of town. With the oilfield being so busy around here, there’s not a lot of places to rent,� said Burgardt. “The hotels are booked up solid, so we had a look at something to house our employees. It’s just set up for our employees. “It’s more or less to give the guys a place to stay until they can get something on their own. We expect it to be full once we go hard after spring breakup.� Rev is currently doing some pipelining for three or four companies – running 4-inch to 34inch flow lines in some yards (facilities) with more flow line projects to come. X Page B7

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707,305, 5,>: (WYPS W Page B6 “There are various different companies that we’re going to be doing a lot of facility work for – trenching in new lines for them – a lot of Cat work, a lot of trucks hauling material in for these sites,� said Burgardt. “After spring breakup, we know it’s just going to get busier with various companies that we have talked to.� Rev Energy has a two page list of equipment including a grader, five trackhoes and four trucks for hauling gravel and three trucks that haul trackhoes and loaders. “We are looking at renting more D6 Cats. We’re looking at renting more rock trucks and packers,� said Burgardt. The company also has five dual blast trucks on the road plus three coatings trucks and day to day equipment for oilfield maintenance. “We’re still a growing company and we have some equipment to replace,� said Burgardt. “We’d be looking at replacing some of our hoes possibly looking at another grader. “Some of the rock trucks we’d be looking at renting. We have replaced some of our gravel trucks already in

the past. “We are looking at replacing one of our blast trucks and putting it in on to a newer unit.� Rev Energy provides the only blasting and coating service in the region making it one of their strongest divisions to prevent pipeline corrosion. “The external coatings division has been a big thing for us in the past 10 years. A lot of the work is done right on live lines for various companies,� said Burgardt. “A lot of our plural coating components trucks will go on the road. We do a lot of spraying on pipelines. They are a three to one mix coatings ratio,� he explained. Rev operates the mobile units with four man crews. Internal coatings are done at Rev’s main shop. The shop also gets more external coatings work from companies in the summer to fall period. Rev Energy applies Scotchkote 134 fusionbonded epoxy internal coatings for corrosion protection. “We coat a lot of pipe spools, anywhere from two inch up to 12 inch for internal coatings,� said Burgardt. The coatings shop is located inside Rev

Energy’s new 31,000 sq. ft. building that is already fully maxed out. “We have talked about expanding on the shop size. It’s a possibility,� said Burgardt who noted the company has three other shops in town that are also fully utilized. Burgardt said his company’s growth is being driven by “a lot of companies doing a pile of work� in the area. “From what hear it doesn’t look like it’s going to quit anytime soon,� he added. “There just seems to be more and more companies coming through all the time. They’re doing more work in the area.� Rev Energy is considering adding an instrumentation and electrical division to its portfolio of oilfield services. “It’s kind of wide open right now,� said Burgardt about expanding space and services. Rev could also benefit from the expected

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construction startup of Torq Energy’s $100 million oil transloading facility this spring near Kerrobert, but nothing is official yet. “I know they have contacted us. We are not sure exactly when they might be starting up or if they plan on using us for sure or not. I’m sure we will hear more to some extent,� said Burgardt. “Right now, I can’t say for sure if we

are doing anything for them or not. They haven’t given us that word.� Once construction does start, Rev’s camp could be the only local housing option available for its own employees looking for a place to stay. “The town is so busy right now. Even for guys to rent a bedroom in town is very costly,� said Burgardt. “It’s fortunate for

people renting rooms out to make a little cash in their pockets, but a lot of guys can’t afford that. “There’s a fair amount of seasonal guys. We’ve got a good turnaround of guys. “Obviously, we try holding on to our main ones. Every year we have a lot of turnaround. It could be anywhere from 30 to 60 guys turnaround every year.�

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W Page B8 Husky Energy is building two steam assisted gravity drainage facilities in the area at Edam East and Vawn that should increase the demand for new Cat equipment and service in Battleford. “Kramer Ltd. has experienced growth over the past few years. We’re looking forward to servicing both current and new customers at the new Kramer Battleford location,� said Hall. The Kramer Cat dealership had three new Cat CT660 vocational trucks in stock in early March but

Hall expects they will sell quickly given their versatility. “The CT660s are here to work, in whatever application our customers need,� said Hall. Caterpillar is partnering with Premier Oilfield, based in Colorado, that is using the CT660 chassis platform to carry their line of CV series hydrovacs. Kramer Ltd. is distributing the hydrovacs from its seven locations in Saskatchewan. The CV series hydrovac is ideal for non-destructive excavation projects such as

potholing, slot trenching and daylighting. It’s also well suited for other digging applications in oil gas, infrastructure, municipal and general construction. Kramer Cat customers in Battleford can also check out the new line of Cat heavy equipment products including a D9T track tractor, 336E H Hybrid excavator and D-series skid steer loaders. Caterpillar is also introducing a D10T2 track tractor and a new series of articulated trucks in various sizes and models. X Page B10

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W Page B9 Kramer Ltd. has a lot more to celebrate in 2014, most notably its 70th anniversary that will take place at all Kramer Cat locations this September. Hall who has

worked in service at Kramer Ltd. for over 38 years has his party hat on from the opening success of the Battleford dealership. “We’ve had a of calls and a lot of people are driving out and having a

look around,� he said. For the service technicians that maintain and repair Cat equipment, the new service bays are well laid out with plenty of safety and efficiency features. “All the bays are

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serviced by an oil distribution system, so when we’re working on machines we don’t have to deal with pails or jugs anymore,� said foreman Scott Shepherd. “We can meter it and pump it and bill it right into the machines. All the oil goes right into the work order so we don’t have to handle it. It’s just set up to be clean and efficient.� The service shop is also well lit with natural light available from the service bay door windows and is equipped with a high tech exhaust system at each end of the shop Each work bay is equipped with a pull down spout that fits over the exhaust pipe when an engine is running to evacuate equipment exhaust. “As the air is evacuated there is an air makeup system that keeps pumping in fresh air and it heats the air as well,� said Shepherd.

The shop is also equipped with CO2 monitors that support the exhaust and air makeup systems. “The shop is set up for heavy equipment. We can work on anything from a forklift or a skid steer all the way up to a rock truck,� said Shepherd. “It’s nice to have the proper tooling that’s for sure.� Every bay is equipped with a computerized work station, but Kramer Cat mechanics rely on tools to fix the diagnostic issues. “We still get the old machines that don’t have computers on them but with all of the new equipment, computer skills are a must to be able to communicate with and service them,� said Shepherd. “It makes it easier to keep track of maintenance and that kind of thing. Electronic controls and monitors are good, but everything

underneath it is still mechanical so you still have to deal with that. “Wrenches are always going to be part of it.� Shepherd has lived in the Battlefords all of his life and has worked at Kramer Cat for over six years. He manages a staff of 14 in the shop plus two or three technicians who are on the road servicing Cat customers. “Eventually as the business picks up and people know what we have here in the facility and what we can handle for work, we’ll hire more technicians as demand increases,� he said. “Business is picking up. The phone is ringing quite a bit – more so than I thought in a new shop. “I think it’s good to have a facility of this size up here. We’ve been needing it for a long time. We can grow into this shop as time goes on.�

0 VODWHG IRU KHDY\ RLO (25 Regina – Innovation Saskatchewan has approved $1.9 million in research and development funding for the 2013-14 fiscal year to develop enhanced oil recovery (EOR) technologies in the heavy oil fields of the province. “Saskatchewan’s oil and gas industry is one of the economic drivers for the province,� said Economy Minister Bill Boyd in a news release. “Last year, the industry experienced records in production and horizontal wells drilled, lending proof to its strength and growth.  “We are continuing to support the development of innovative technologies through partnerships with industry that will increase oil production.� The approval of these heavy oil EOR projects is consistent with Premier Brad Wall’s plan for growth which includes initiatives aimed at increasing oil production and developing new technologies to

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access our oil reserves.  Some of the key objectives of the projects are to study the use of microbes and radio frequency heating to increase oil production. “We are very pleased with the collaborative effort that industry and research organization partners made in the development of these projects,� said Innovation Saskatchewan CEO Jerome Konecsni.  “Innovation isn't innovation unless it's implemented to provide the promised benefits.  With industry participating in the development and operation of the projects and providing 70 per cent of the funding, we are confident that these initiatives will result in impacts on Saskatchewan's economy. The funding is being allocated to four projects through the Saskatchewan Advantage Innovation Fund, which is accessible by partnership among industry and research organizations for strategic innovation projects.

707,305, 5,>: (WYPS

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3RSODU 6HUYLFHV FHOHEUDWHV D \HDU LQ QHZ KRPH Redvers – In March 2013 Poplar Services of Redvers moved into their new home, 7L Place, on Broadway Street in Redvers. It’s the first new building of its type on Redvers’ main drag in many years. “We moved in last March. It’ll be a year here next month,� said Brian LeNouail on Feb. 27. LeNouail owns and operates Poplar with his wife Marie-France. “I thought that lot had been empty since the 1960s. The RM bought it from the bank next to their office for future expansion,� he explained. “The RM gave me a good deal to see development come to downtown Redvers. They want to see development come as well. We broke ground in September 2012.� The project was only a month over its planned timeline, a very short overrun considering most building projects in southeast Saskatchewan end up three to six months over their projected completion date. LeNouail said, “We were very fortunate. Rod Day from Carnduff was the general contractor.� The wood frame, two-storey building has 1,800 square feet per floor for a total of 3,600 sq. ft. It’s a substantial increase from their previ-

ous digs, which they simply outgrew. Their previous offices would fit in the current coffee area. “We just ran out of space. We had completed outgrown the place. There was a need for some more professional space, too,� said LeNouail. On the main floor, three firms have offices – Painted Pony Petroleum, accounting firm MNO and legal firm Osman Gordon & Co. Poplar Services occupies the second floor. Poplar Services focuses on environmental work. LeNouail said, “We specialize in drilling waste disposal – mud, shale, everything. “We really focus on becoming a complete service provider for all work on a site.� A lot of their clients are across the border, in Manitoba, where many regulations are tighter. All waste water there, including sewage, must be contained. “We come up with waste management plans for our clients to properly handle drill cuttings disposal, mud disposal, cement return disposal and sewage,� said LeNouail. “The customer can come to us and say, ‘You organize our waste disposal, so anything on this site is done.’

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“A lot of times we won’t handle the garbage since the rig has its own system in place.� The waste they deal with is considered industrial waste. The solids go to Class II landfills at places like Heward and Gladmar in Saskatchewan and Virden in Manitoba. “We do the management. We do all the paperwork, all the testing. Custody stays with the oil company until it reaches the landfill or disposal well,� LeNouail said. They deal with caverns as well.

“Typically, the drilling mud we will land spread,� he said. “That was our origins. It’s always kind of been there, management of waste. We’re now taking it on as a complete plan.� In some circumstances, Poplar will give the oil company one invoice, handling all the subcontractors in turn. On other castes, the oil company sees all the subcontractors’ invoices. Rentals, particularly for sewage containment tanks, is a growing part of the business.

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+XVN\ FKDULW\ FKHTXH GD\ IXOO RI VPLOHV year ago. “Oh we’re ecstatic. We’ve only surpassed that one other time. This is our second highest that we’ve ever raised,â€? she said with the 2014 campaign already in motion. The first fundraising challenge in 2014 required employees to purchase Mother’s Day flower baskets by March 14 with more fundraisers to follow. “The employees have come right on board and help out. When this campaign happens we get full support,â€? said Veltikold. Representatives from the recipient charities were on hand at Husky Place for the >ůŽLJĚžĹ?ĹśĆ?ĆšÄžĆŒ Θ Ĺ?Ć?ĆšĆŒĹ?Ä?Ćš hĹśĹ?ƚĞĚ tĂLJ Ć‰ĆŒÄžĆ?Ĺ?ĚĞŜƚ͕ ^ĹšÄ‚ĆŒŽŜ ^Ç Ĺ?ĹŒÍ• ĹŻÄžĹŒÍ• ĂŜĚ <ÄžĆŒĆŒÇ‡ dÄ‚Ç‡ĹŻĹ˝ĆŒ ĹšŽůÄš Ä‚ ,ĆľĆ?ŏLJ ĹśÄžĆŒĹ?LJ Ä?ĹšÄ‚ĆŒĹ?ƚLJ Ä?ŚĞƋƾĞ ĨŽĆŒ Ĺ˝Ç€ÄžĆŒ ΨϳϰÍ•ϯϳϲ Ć‰ĆŒÄžĆ?ĞŜƚĞĚ presentation of cheques Ä?LJ ĞǀĞŜƚ Ä?ŽͲÄ?ŚĂĹ?ĆŒ ĹŻ DÄ‚Ä?>Ä‚ĆľÄ?ĹšĹŻÄ‚ĹśÍ˜ on Feb. 19 with the funding amounts kept Lloydminster – It Of the total, ration. secret until the names felt like Christmas in more than $120,000 Committee memwere called to build February for 10 local was raised by Husky ber and event host suspense. charities that shared employees and conDawn Veltikold was “This is our big$194,749 raised by the tract workers at events over the moon with the gest exciting day annual Husky Energy throughout the year successful wrap up of since we love seeing Lloydminster chariwith the balance conthe latest fundraising the amounts that are table campaign. tributed by the corpocampaign that began a dispersed and we keep it really under wraps,â€? said Veltikold in her opening remarks. “The committee CLIFF REANEY Classroom members aren’t even certain how much each 64-3rd St. N.E. P: 306.861.9966 of the agencies get. This Weyburn, Sk E: creaney@sasktel.net is a great day for us.â€? On-site Service Available The task of introSchedule listed on website. Call if alternate dates required. ducing the recipients and presenting the • CANADA SAFETY COUNCIL DEFENSIVE DRIVING COURSE/PROFESSIONAL cheques fell to Al DRIVER IMPROVEMENT COURSE • ST JOHN AMBULANCE FIRST AID/CPR/AED • WHIMIS MacLauchlan the 2014 • IN VEHICLE DRIVER EVALUATION campaign co-chair. “First and foremost I would like to thank the committee members,â€? he said to kick off the formalities and photo ops. “It was a very successful year – lots of events went on $ 'LYLVLRQ RI -- 7UXFNLQJ /WG throughout the year, so this is an all year long ‡ 2LOILHOG *UDYHOLQJ project. ‡ *UDYHO &UXVKLQJ 6FUHHQLQJ “To the organiza‡ 6HDOHG 7UDLOHUV IRU +DXOLQJ tions themselves, we &RQWDPLQDWHG :DVWH are really thankful that ‡ /HDVH 3UHSDUDWLRQ you are all here because 5HFODPDWLRQ without your work that ‡ *UDGLQJ do in the community, I think Lloydminster ‡ ([FDYDWLQJ would be a lesser ‡ +HDY\ (TXLSPHQW +DXOLQJ place.â€? ‡ &25 &HUWLILHG MacLauchlan 72// )5(( /' $//$1 presented a cheque

for over $74,376 – the &UHHOPDQ 6DVN 0HO 7UREHUW 2ZQHU largest amount to 6HUYLQJ WKH LQGXVWU\ VLQFH 7UDYLV 3DWHUVRQ /HDG 'ULOOHU the Lloydminster & 'LVSDWFK 5RG /DUU\ Dispatch Rod/Larry: (306) 421-9295 District United Way /DUU\ &HOO Shop: 433-2059 that in turn, funds 16 OfďŹ ce 6KRS phone/Fax: 433-2069 agencies. 2IĂ€FH SKRQH )D[ Larry Cell: (306) 457-7712 X Page B13

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707,305, 5,>: (WYPS W Page B12 The Lloydminster Region Health Foundation received $23,870 while the Lloydminster & District SPCA was presented with $24,368. The Lloydminster Handivan Society received $12,498 with $12,312 going to the Canadian Cancer Society. A cheque for $9,400 went to Big Brothers/Big Sisters of Lloydminster while $7,680 was awarded to the Canadian Diabetes Association. The Salvation Army marched off with $14,303 with KidSport getting $7,615 and Telemiracle receiving $8,322. MacLauchlan said the campaign surpassed its goal of raising $110,000 from employee fundraisers, and a new committee was in the process of setting a target for 2014. “It will be something in that range. We’ve been fairly consistent with raising these kinds of dollars for the community,� he said. “It’s really important to the community because all of these organizations are doing really good work in the community whether it’s for the health foundation or the actual United Way campaign.� Veltikold said the chosen charities change a bit each year, but the campaign doesn’t sponsor any of the United Way funded agencies independently since those receive a share of money presented to United Way.

“So that allows us to bring in some different agencies. Our 10 agencies, nine are independent agencies and the United Way covers an additional 16,� explained Veltikold. “We get a really good cross section of nonprofit charitable organizations covered with our dollars.�

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Construction HTXLSPHQW Ă€ OOV shop space graders, skid steers, wheel loaders and mulchers. Service business is steady for trucks and agriculture equipment, but ZLJĂŜ >ĞĞ͕ Ä‚ ĆšÄžĆŒĆŒĹ?ĆšĹ˝ĆŒĹ?Ä‚ĹŻ žĂŜĂĹ?ÄžĆŒ ĨŽĆŒ ZĞĚŚĞĂĚ Ć‹ĆľĹ?ƉžĞŜƚ͛Ć? Ä?ŽŜĆ?ĆšĆŒĆľÄ?Ć&#x; ŽŜ ÄšĹ?Ç€Ĺ?Ć?Ĺ?ŽŜ Ĺ?Ĺś >ůŽLJĚͲ the construction division could use ĹľĹ?ĹśĆ?ĆšÄžĆŒÍ• ÄŽ ĞůĚĆ? Ä‚ Ä?Ä‚ĹŻĹŻ ŽŜ ĹšĹ?Ć? Ä?ĞůůƉŚŽŜÄž ÄšĆľĆŒĹ?ĹśĹ? Ä‚ ĆšŽƾĆŒ ŽĨ ƚŚĞ ŚĞĂǀLJ ĞƋƾĹ?ƉžĞŜƚ Ć?ÄžĆŒÇ€Ĺ?Ä?Äž Ä?ĂLJ͘ more elbow room in the back shop. >ĞĞ Ć?ƚĂŜĚĆ? Ĺ?Ĺś ĨĆŒŽŜĆš ŽĨ Ä‚ sŽůǀŽ 'ϾϳϏ žŽĆšĹ˝ĆŒ Ĺ?ĆŒÄ‚ÄšÄžĆŒ ƾŜÄšÄžĆŒĹ?Ĺ˝Ĺ?ĹśĹ? Ć?ŽžÄž ĆŒÄžĆ‰Ä‚Ĺ?ĆŒĆ?͘ Last year, agriculture was one of the hottest divisions in the local service shop and led to 10,800 sq. ft. addition service manager in Lloydminster. „ By Geoff Lee strictly for servicing the booming farm “When I started here back in Lloydminster – The Redhead equipment market. April 2010, our construction equipEquipment dealership in LloydminThe expansion plan called for ment division was the smallest of the ster may have to invent the eight day the old ag shop to be split between week to allow the service shop to keep divisions encompassing only about construction equipment and ag equipseven bays. up with the workload generated by ment, but an uptick in construction “Now it encompasses about half its growing construction equipment sales led to Plan B. of the entire square footage that we division. “As it’s turned out we’ve had so have here so it’s grown huge.â€? Growth is driven by a strong oil much construction equipment business Gaudaur estimates sales at his and gas economy and by the comthat our main shop is full and ag shop service shop have grown by about 15 mercial success of Redhead’s truck, is now just completely about construcper cent a year in the past four years. agriculture and construction equiption,â€? explained Gaudaur. “That’s as a total including trucks ment divisions. “Ag has been forced into the new and ag,â€? he said. It’s a similar story at all Redhead addition on its own.â€? Redhead sells rents and serlocations in Saskatchewan in the past The service shop layout includes vices Case and Volvo construction 10 years. 13,800 sq. ft. for the ag shop, 12,000 equipment such as crawler dozers, “We’ve been actually growing sq. ft for the truck shop and 12,000 exponentially,â€? said Sterling Gaudaur, excavators, loader backhoes, motor

sq. ft. for the construction equipment shop. The original shop space has grown from 18,000 to 37,800 sq. ft. and there is talk of a further addition down the road as the dealership continues to grow. “Because we were getting so big we had to purchase five more acres behind us from the city just for the amount of equipment that we have on site. We just had no where to put it,� said Gaudaur. The dealership footprint has grown to a total of 53,175 sq. ft. of office and shop space on a 12 acre property fronting Highway 16 East. Gaudaur attributes being in the centre of the busy Lloydminster heavy oil market for the rapid growth of sales and services in the construction equipment division. “We are the only construction equipment company that’s based in Lloydminster,� said Gaudaur. X Page B16

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W Page B15 “Also it’s the product lines we offer. Because we have the versatility with both Volvo and Case construction, we offer our customers more than one solution to their issues. “We are a total one stop shop. People can come here for their trucks, their ag equipment and their construction equipment. “Even a farmer has a small piece of construction equipment in a skid steer.� Crossover equipment in the agriculture, oil and gas and construction sectors help to fill up the service bays at the Redhead dealership along with servicing equipment rentals. “A huge part of what we do is a rental business. In the construction division exclusively what you see here is probably only a third of what we actually have. Two thirds is out,� said Gaudaur.

“This yard will be empty and we’ll have somewhere around 200 pieces of equipment out on rental once the busier season starts.� Each piece of rental equipment is inspected when it comes back to the yard to ensure it’s mechanically fit for service for the next customer. The rent to own or rent for a term options fits Redhead’s pledge to optimize what it calls uptime for customers. “We don’t talk about downtime, we talk about maximizing uptime,� said Gaudaur. “When our customers make a living, we make a living. We are in direct partnership with our customers. “We’ve become an integral part of their business when they ask us to be a partner either by a rental or a purchased piece of equipment.� Gaudaur oversees servicing in all three

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divisions at the dealership along with assisting with corporate and local hiring of skilled workers. “Since Jan. 1, I have brought on three people from Ireland. I have brought on a person from England. In the two months before that I brought another person in from England,� said Gaudaur. The Regina based company went on a hiring mission last fall to Belgium, Tunisia, and France with the first of the new hires arriving in late February and early March. “I’ve got one guy hired for this branch that should be here next week,� said Gaudaur on Feb. 27. “The biggest problem we have is skilled workers. There are lots of people who apply to me who want to start – apprentices and things like that. That’s fantastic and I fully support that.� “We do recruiting missions all the time at the local colleges and our other branches do the same thing. We’ve hired staff out of those places. “It’s skilled labour that we lack.� Gaudaur said all of the new construction equipment that mechanics work on is fully computerized and is following the lead of trucks and ag equipment with creature comforts for operators. “It is evolving to the point where we are making the insides of the cabs as comfortable as your lounge chair at home with fancy TV screens and computers that do the work and ergonomics and all that kind of stuff,� said Gaudaur. “Probably the largest technological advancements we’ve seen in the last couple of years have been on the construction side because those guys were sort of the last to jump onboard with all that. “Construction equipment is catching up rapidly.�

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Electric smiles light up Lloyd champs

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„ By Geoff Lee Lloydminster – Members of the Baker Hughes curling team broke into 21-kilowatt smiles the moment they sealed the A-Event win at the 2014 Lloydminster Heavy Crude Open Bonspiel on March 16. The emotional response by Jeff Latos, Joe Halbach, Brian Robinson and skip Bruce Jack was the outcome of their undefeated record and a close final against Hunting Titan at the Lloydminster Curling Club. Halbach who played second, spoke for the team with his smile intact when asked if he was please to win. “Oh very happy. It was a long weekend and a lot of hard work. The guys curled really well,� he said. “We had a good game against them too. We really enjoyed this weekend. “I want to say thanks to all the guys that made this event what it is today. Thanks to all the organizers and the committee people. We are really grateful for that.� It could have been a different story had the game followed the strategy that Hunting’s Rick Terrio weaved on behalf of his teammates Scott Graham, Zack Oatway and skip Clint Graham back in the second end. “I am depending on my skip and hoping we all make our shots. As long as we make our shots we’ll win it. Our skip is really good,� said Terrio confidently. Last year’s champs, McAllister Drilling Inc., won the C-Event against Tarpon Energy Services after being derailed in an early tournament loss to Hunting Titan. “We came against a hot team and they beat us,� said McAllister skip Noel Bernard at the banquet held at the Lloydminster Exhibition Grounds on March 14. “That’s the way it goes some days. We’re still curling and we’re still having fun. That’s the important part.� The 2014 bonspiel attracted 72 teams, the same as last year, thanks to some last minute phone calling from event chairman John Stanyer. “Oh ya, it seems to be a normal thing these days. Seventy-two teams, that’s what you’re going get the way the climate is as far as sports and entertainment has gone,� he said. “Everything is pretty much on time which is a good thing. We have a couple of teams from Calgary and couple of teams from Edmonton.� Stanyer is into his second decade chairing the event and was gobsmacked by a plaque presented to him by executive president, Monte Armstrong during the banquet in recognition of his efforts. “It ‘striked the hell out of me’ that’s for sure! I didn’t expect anything like that at all,� he said later. “I’m back next year whether they want me or not. There’s a lot of things to do.� Pipeline News caught up with Tom Fisher at the banquet as the only curler who has played in every tournament including the 47th annual version this year. “Curling has been great. One of the curlers I started with here is Orville Christie,� he said at his table. “It’s been a really good roll of 47 years. I am very lucky I have my health.� Fisher’s Hurricane Industries’ team was 0-2 at the banquet and ready for an early exit, but they rallied to win three in a row including the H-Event final against Foremost Border Broomers. “We’re having fun,� said Fisher early in the event final, leaving the victory comments and analysis for the media to his teammate Howie Staniforth. X Page B18

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Lloydmister Bonspiel

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“It was good. It was a close game. It went back and forth,� said Staniforth. “We were up two coming home. We had a great team. We had lots of fun.� Fun is the main reason that players give as a reason for what keeps them coming back including Lawrence Kiyawasew from Agat Laboratories. “It’s a good time tournament. Everybody’s out there having a good time. We’re giving it 110 per cent and seeing what we can do,� he said. It’s a similar story for Sheldon Ballas who skipped a team to the A-Event championship in 2012. “We’ve been coming every year for the last couple of years – three years. We just try to make it an annual thing to get out and have some fun,� he said. This year, Ballas played for Marksmen Vegetation and won the B-Event in a game against Team Brost. Team Brost was named in a honor of 2007 Oilman of the Year Matt Brost

who died this past year and was recognized at the banquet along with other fallen curlers. This year’s Oilman of the Year, Vic Jezowoski, lived up his to promise to keep his acceptance speech to the bare bones while at the podium. “I would like to thank the oilmen’s bonspiel executive for giving me this opportunity to be 2014 oilman of the year,â€? he said. “It’s a great honor to be in the company of so many past oilmen of the year. It’s very much appreciated. I would also like to thank my good wife Jean for 48 plus years, my family and friends.â€? Jezowski also cracked a couple of good jokes as did Kurt Price in his first year as master of ceremonies. Lloydminster Mayor Rob Saunders, one of many head table guests, took his turn at the podium to welcome curlers and as an early sign of spring. â€œâ€ŚThis gives me an opportunity tonight to thank the oil industry people for the hard work that you do every day to keep the economy roaring in this part of the world,â€? said Saunders. “Let’s give everyone a round of applause for the oil and gas industry. Good luck to all of the teams. This is always a special event. It brings on spring.â€? Armstrong thanked all the donors and sponsors and presented the annual sponsors’ plaque to Wilkinson Livingston Stevens LLP that supplies team platters year after year.

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Robinson. B-Event: Marksmen Vegetation: Sheldon Ballas, Lyle Froelich, Richard Smyl and Brandon Tupper. C- Event: McAllister Drilling Inc.: Noel Bernard, Mike Makowecki, George McAllister and Ed Ehrle. D-Event: Heavy Crude Hauling: Stan Krzak, Dave Powers, Darrel Graham and Ron MacDonald. E-Event: Bandit Pipeline: Monte Armstrong, Max Rivett, Dusty Makichuk and Ryan Armstrong. F-Event: Dash Tools: Jay Foss, Bruce Slade, Chris Patton and Kim Ottenbreit G-Event: Eagle Well Servicing: Dustin Lavigne, Kent McCallum, Ed Gilroyed and Vern Bexson. H-Event: Hurricane Industries: Jim Krepps, Larry Paul, Howie Staniforth and Tom Fisher.

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Mike Oilfield Services got a round of applause as the sponsor of an annual draw to the button for a fly-in fishing trip for four to Mike’s fishing lodge in Northern Saskatchewan. Out buying worms already is the Integra Engineering foursome of Evan Stephens, Dan Unichuk, Kelly Grant and Steve Rutley. None of this fun would be possible were it not for Ted Collins who founded the bonspiel. Collins gave up curling last year and retired from his role singing “O Canada� this year, but volunteered to say a few words about the event to Pipeline News. “We’ve got a great bonspiel on again. It’s one of the best in Western Canada that’s for sure,� he said. There’s no argument about that from Jason Lesmeister who curls for Concept Controls in Edmonton and plans to come back for more next year. “I’ve played all my life and I’ve gotten into oilmen’s for the last two years. I heard great things about the bonspiel. They have a lot of teams,� he said. “My dad used to play here years ago. “It’s also a good promotion. We do a lot of work out of this area with a lot of our customers so why not meet new customers. It’s been great.� The event winners are as follows: A-Event: Baker Hughes: Bruce Jack, Jeff Latos, Joe Halbach and Brian

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%ODFN3HDUO UDLVHV IRU 2QLRQ /DNH 6$*' Calgary – BlackPearl Resources Inc. expects to have enough financing in place this month to start construction of the first phase of its steam

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40 years of marriage for pipeliner „ By Brian Zinchuk Estevan – His perfectly smooth ditch bottom shows the mark of a sewer and water excavator operator. Sure enough, that’s what Gordon Turner did for much of his career. These days he’s working on pipeline projects with A&B Pipeliners. Turner is from Trehern, Man. Asked how long he’s been swinging a hoe, he said, “Thirtyfive years, for sure. I used to do sewer and water. “I run Cat a bit.� At 62 years of age, he didn’t start off in dirt work. “I did some plumbing for a few years, and worked at a welding shop for a bit,� he explained. Most of his work has been in sewer and water, for a total of 25 to 28 years. “I jumped around a bit,� he said. His experience has been helpful. Turner noted not that long ago, he was able to avoid a potential problem simply by noticing a change in colour in the dirt. “I was down in the Waskada area. I found an old trench that wasn’t marked. They checked it and there was a line.� Now with A&B for the past two-and-a-half years, Turner first started pipelining 15 years ago. “I was working for Midwest at Lac La Biche. I was on the tac rig, welding, and they heard I could run a hoe, so they put me on a hoe,� he said. Unfortunately, many long-time pipeliners endure marital breakdown, but not Turner. He’s still with his first wife. “Forty years this year,� he said. As a celebration, the pipeliner said, “We’re going to the East Coast.�

Gordon Turner’s dirt work has the trademarks of someone who spent a lot of Ć&#x; žĞ ĚŽĹ?ĹśĹ? Ć?ÄžÇ ÄžĆŒ ĂŜĚ Ç Ä‚ĆšÄžĆŒ Ç Ĺ˝ĆŒĹŹ Í´ Ĺ?ŜͲ Ä?ůƾĚĹ?ĹśĹ? Ć‰ÄžĆŒĨÄžÄ?ƚůLJ Ć?ŚĂƉĞĚ Ć?ůŽƉĞĆ? ĂŜĚ Ň Ä‚Ćš Ä?ŽƊ ŽžĆ? ŽŜ ĹšĹ?Ć? ÄšĹ?ĆšÄ?ŚĞĆ?͘ Photos by Brian Zinchuk

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Unity – The 13th annual Unity Oilpersons Bonspiel proved to be the luckiest yet for the Huber Machining Ltd. rink skipped by company owner Grant Huber. The 52 year-old Huber backstopped his team to the A-Event title for the first time in 13 tries, leaving his rink and the opposing rink from Diamond Energy Services in shock and awe. The fun event was held Feb. 27 to March 2 and drew 21 teams, the same number as last year. Huber celebrated the thrill of victory with his teammates Brent Ackerman, Bob Smith and Larrie Thalheimer at the Unity Curling Club. “We were just playing one shot at a time. We did well. We played a good game against Diamond. They won it before,� said a happy Huber. “It was a good close game. We were 5-2 coming home, so we ran them out of rocks in the 8th end.� The local Diamond Energy team came into the tournament as the A-Event champs at the

recent Maidstone bonspiel, but it was Huber’s turn to win at home. “He was pretty happy about it,â€? said event chair Dustin Brown who works for Northern Blizzard. “I think he has been the bridesmaid a couple of times.â€? Huber in fact was a runner-up in 2012 to R.E. Line Trucking Ltd. “We’ve won different events over the years – never the A. It was nice to win that for a change,â€? said Huber in a post game phone interview. His wife Dianne wasn’t overly thrilled with his first pick of prizes as the overall champ. In an e-mail she wrote, “Grant picked a Stihl gas powered weed eater for me to use at the cabin, LOL.â€? Next up to the prize table was the B-Event T-Rex Controls winning squad skipped by Trevor Rask with a family crew of Travis Rask, Marlowe Rask and Jessika Rask onboard. The Wildecard rink captured the C-Event title with skip Colin Tanton and crewmen

Cody Lakevold, Derek Wildeman and John Muirhead. This year’s DEvent rink was the Road Hawk Hauling Ltd. team led by Chris Leibel and his gang of Ryan Zunti, Brian Kuhn and Kyle Reiniger. Road Hawk Hauling was also this year’s major sponsor with the torch already passed to Tervita as the main sponsor of the 2015 bonspiel. Ironically, the Tervita (Tyler) rink won a $1,000 reverse draw prize among an treasure trove of prizes available to curlers. “I think we had our most sponsorship ever,� said Brown about this year’s event. “We had a few new sponsors and a few older sponsors that jumped up their sponsorship.� Larrie Thalheimer who played lead on Huber’s A-Event team won a putting contest for a 40 inch TV donated by Country Ford. Money raised at the bonspiel from entry fees and contests is plowed back into improvements at the curling club. X Page B23

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707,305, 5,>: (WYPS W Page B22 Upgrading the washrooms tops the to-do list with profits from the 2014 bonspiel. The bonspiel was played out during the coldest weekend of the winter, but that didn’t scare any teams away or spoil the fun. “We had a few out of town teams – probably over half were from out of town,� said Brown who stressed the weather had no effect on the party atmosphere indoors. “We had a decent turnout for the dance and everything. Danny and the Dusters are going to play at the dance again next year.� One of the highlights this year was a silent auction that featured a Pilsner Saskatchewan Roughriders’ beer fridge stocked with four cases of brew. It was claimed by Terry Smith from Teron Consulting who put in the high bid of $895. “We also raffled off another fridge for $5 a ticket and that came with four dozen beers as well,� said Brown. The second fridge, donated by Cinema Satellite was won by Doug Rutley. “We also had an autographed Jordan Eberle jersey and a Roughriders

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jersey as silent auction items.� Brown’s own 3 Sheets to the Wind rink went home with nothing but good memories and several lost causes on the ice. “We didn’t win a game,� laughed Brown who found his second year as event chair easier than the first. “Another great year,� he concluded.

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Lloydminster hops on housing bandwagon Lloydminster – Lloydminster is jumping on a national housing needs campaign bandwagon being pulled by the Federation of Canadian Municipalities. The city is one of 140 FCM members to pass a resolution in support of the campaign urging the federal government to work together with its partners on a long-term plan for housing. Lloydminster appeals to federal ministers to recognize that the high-cost of housing in Canada is the most urgent financial issue facing Canadians and that a coordinated partnership between all orders of government is required to address. “This resolution sends a strong message to the federal government that we need to work together,� said Mayor Rob Saunders in a Feb. 24 news release. “Like any other community, Lloydminster needs better housing options to attract new workers, meet the needs of young families, and support seniors and our most vulnerable citizens. “We need a stable and secure housing market that creates and maintains

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jobs, while ensuring a range of living options for our residents.� The average home price in Canada is up 67 per cent since 2000 compared to only a 13 per cent increase in household incomes according to the FCM. The average cost of owning a home has risen 44 per cent in Alberta since 2001 and 43 per cent in Saskatchewan over the same period. The call for action by FCM members is timely as $1.7 billion in annual federal housing investments are set to expire with the greatest drop in funding, up to $500 million a year, coming between 2014 and 2019. FCM says this will put 200,000 people at risk of losing their homes and will bring other spillover effects unless federal, provincial, territorial and municipal governments take action. Saunders fears the loss of this funding from the federal government has the potential to affect Lloydminster in the future. He said is writing to Minister of Employment and Social Development, Jason Kenney to reiterate the importance of developing a long-term plan for housing that ensures the housing needs of Lloydminster are “appropriately considered.� Saunders said a long term plan also has to protect Canadians from the expiry of social housing agreements.

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5HGKHDG¡V KHDY\ HTXLSPHQW WDVN RULHQWHG Lloydminster – Just as there is a right tool for every job, there is the right piece of heavy construction equipment for every seasonal application of oilfield construction. That’s the belief of construction territory managers Rick Allan and Ryan Lee at the Lloydminster Redhead Equipment dealership that specializes in Case and Volvo heavy equipment. Case and Volvo wheel loaders and excavators and CMI mulchers are in high demand right now as late winter and early spring oilfield activities begin to overlap. “Every piece basically has a season that it is going to be shining in. It depends on the season and the job,â€? said Allan. “Right now it’s going to be a wheel loader season. We’re going to be running into breakup pretty soon – leases are going to have to be cleared off and maintained and straightened out. “Excavators are hot right now. Rock trucks are really going to start to gear up.â€? Redhead Equipment sells and services a variety of Case and Volvo construction equipment from compact equipment like skid steers to six and half yard wheel loaders for crushing and truck loading applications. The product lines include crawler dozers, excavators, loader backhoes, motor graders and forklifts to name a few with oilfield customers driving business. “We’re busy. The oilpatch has treated us very favourably and we’ve got a good following,â€? said Allan. Allan told Pipeline News the type of work the equipment is being used for in oilfield work depends on the job and the area along with the season. “There’s going to be articulated haulers for moving materials, there’s going to be excavators for open excavation – wheel loaders – it’s not just one piece of equipment either,â€? he said. “Some of our guys are doing pipeline construction; some of our guys are doing tie-ins and some of our guys are doing cut and caps. Again, it’s a wide variety of equipment that’s going to be required.â€? Redhead is also experiencing success with sales and service of mulchers. The CMI Hurricane C250 is well suited for oilfield applications such as site preparation, right-of-way clearing and maintenance and seismic line clearing. X Page B26 Whether around the shop or on site, SAVE $$$ on your labour costs with materials handling equipment from Millerdale Tool & Machine. Steel Stillages and Totes from Millerdale Tool & Machine have a heavy duty, square tubing frame, are fork-liftable from all sides and are available either unpainted or in safety orange.

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W Page B25 “Mulching tends to be a seasonal job. They start with freeze-up – probably November and go through to the end of March and April,� said Lee. Sales are keeping pace with oil and gas industry. “For the last three years it’s been really good. It’s picked up a lot,� said Lee about the industry. “We sell a lot of mulchers for seismic which is part of the oilfield industry. We are the strongest dealer for the product.� The C250 unit also has the lowest ground pressure in the industry to minimize ground disturbance in wet conditions. “The majority of my work right now is mulchers. I spend a lot of time up in Fort Mac or around there, following machines and making sure that they are running right,� said Lee. “I do lots of work with the customer.� Redhead Equipment even will fly in parts from Regina and Lloydminster to prevent customer downtime. “It’s important when the window is a 90 day season,� said Lee. Wheel loaders with pipe and pole grapples are also strong sellers at this time of year for oilfield work. X Page B27

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W Page B26 “The 921Fs (articulated wheel loaders) seem to be pretty popular with Case and the L90s in Volvo are a good bet,� said Lee. “Every lease would have at least one loader to put the rig mats down or move the pipes.� Allan said Case and Volvo sales are fifty/fifty at the dealership with some products such as rubber tire skid steers, track skid steers and compact track excavators on rubber tracks overlapping both makes. “What it comes down to is availability or customer preference. We carry a broad range of equipment,� said Allan. Sales of motor graders are also strong throughout the year by RMs for snow plowing and road maintenance and by oil companies for lease work. “Lots of guys are buying Volvo graders – six wheel drives – so they can articulate a lease and plow in one sweep with the front wheel drive or the all wheel drive,� said Lee. “Some of our customers have bought the new Volvo skid steers and they’ve put plows and snow blowers on the front. “We’ve had lots of farmers buying skid steers. They are getting oilfield shutdown business. They all seem to want to rent or lease out to the oilfield construction on their quiet times. “We’ve lots of that in the last three years.� Redhead generates a lot of sales and service from year round agri-

culture work, contractors for water and sewer work and for gravel pit operations among others. “I deal with all the gravel pits. That’s a busy time for that for me now as well,� said Lee. “I have a lot of customers around the Lloydminster area – screeners, crushers, impactors.� Building a good customer relationship is critical for first time and repeat sales of heavy equipment along with helping the customer acquire the right equipment for their application. Allan and Lee try to walk a mile in their customers’ shoes. “With heavy equipment we will do a demo on the machine with the customer. We will accompany the machine. We’ll go through the features and benefits,� said Allan. “We’ll do a good walk around. We will put it on site for the customer and let him try it in his application for a day to see if it’s going to work in his application.� Redhead can also offer a rental option so the customer can see if the equipment is right for his application or to determine if the job will sustain the acquisition of that piece. “If you are looking to buy a machine from me, I will find out what I think suits your needs. “Then I will hopefully get you in touch with previous customers who run the same machines. You can talk to them. “Customer relations

are huge. It’s a big industry and most of our sales are from word of mouth people who will refer us.� Allan added that when they make a sale they will introduce the customer to the service and parts department managers “just to show the customer that we are here as a unit to help the customer when he needs us. “We have a trailer line in our truck division, so if the customer is looking for a trailer or a truck to haul, we can introduce him to our territory manager for the truck sales in his area.� Lee says what makes Redhead Equipment stand out from the

competition is its one stop concept. “We have the service, we have the parts –

we have many different brands of equipment,� he said. “We have a very

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1HZFR SURGXFWLRQ WDQN FHUWLĂ€HG IRU VDOHV „ By Geoff Lee Lloydminster – Good news travels fast, but Newco Tank Corp. is hoping their 2014 sales message will move at lightspeed throughout the global heavy oil market. The Lloydminster-based company wants everyone to know that their innovative, cost efficient production tank with a built-in engine is now officially certified by Intertek. “This project has been over 10 years now and has taken a lot of time and energy. We finally have something we can market,â€? said Newco president Kevin Clarke. “There are no more issues or concerns to address. We are very pleased. Now we just have to show everyone what we’ve got here.â€? Newco expects to sell more than 100 of its redesigned Thermally Optimized Production tanks (T.O.P) to heavy oil companies in 2014.

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“Eleven companies are very interested in it right now. Our goal is to sell 100 this year,� said Curtis Going, vice president of sales and marketing. “We’ve got something we feel is very beneficial to the oil companies. Once people recognize the benefits of our product, I think it’s something that will sell itself.� Intertek certified the T.O.P. tank in November 2013 to meet the Canadian Electrical Code. The T.O.P tank is the first certified production tank that has no burner tube. Placing the engine in a secure room inside the tank eliminates the need for propane or casing gas burner system and reduces CO2 emissions substantially. “We have harnessed all the wasted heat from the engine to heat the fluids. There is no cost to the end user to heat the fluids, so this brings operation costs way down,� added Going. The T.O.P tank system also utilizes heat from the exhaust system and from glycol coils. “It’s free heat for the life of the well,� said Going. Sales and production of 1,000 barrel T.O.P. tanks are finally back onstream after a two and a half wait for Intertek certification of the electrical design. “The confidence level has never been higher, and it’s time to get exposure and introduce this to oil companies again,� said Going. Newco had sold nine of its specialized tanks to Cenovus Energy in 2010 before running into an electric hiccup. “We had to reinvent the electrical design basically, so we lost some traction over the last two and half years,� said Clarke. “We didn’t want to do any further sales until we had this electrical issue straightened out. “Now we meet the Canadian Electrical Code and we’re ready to do sales.� The modifications allow for the dumping of excess heat from the engine coolant during low flow and high ambient temperature conditions. The tank is now also capable of handling additional electrical load from auxiliary well site equipment. Cenovus is completing modifications to all of its previously purchased tanks to meet the Intertek certified design. X Page B29

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W Page B28 “They’ve been basically working with us since January 2010,� said Clarke. “They are behind it all the way. With this electrical issues all solved, we were told from the Cenovus electrical group that everything that comes on their wellsite has to be certified. This is good timing for us. “The goal is to get their nine tanks up and running again with the retrofits and start selling more tanks. “Heavy oil is all over the globe. We want to get started in Western Canada and eventually jump south and market it all over.� Newco is open to a variety of tank purchasing options including sales and leasing. “We are willing work with oil companies if they want to lease the tanks or if they want to rent to own,� said Going. “We are very flexible in regards to getting our product in the field.� A T.O.P tank is more expensive to purchase than a conventional setup, but it has the ability to pay for itself within two to 13 months depending on fuel consumption. “It’s like having the keys to a brand new Cadillac that you don’t have to pay fuel for during the lifetime of the vehicle,� said Clarke. “We’ve had guys tell us the fuel savings are anywhere from $5,000 to $15,000 a month.�

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The design of the T.O.P tank also delivers savings in setup, maintenance and operating costs. “We are very excited. We feel that the time is now. Obviously, with propane price going up it just makes it more economical,� said Going. “It’s the first product that continues to give back on a monthly basis to the oil company and to the environment. The T.O.P tank streamlines the wellsite by eliminating the need for an engine shack and an expensive conventional 750,000 BTU propane burner. “All we’ve done is taken that engine and repositioned it inside the production tank and eliminated the burner tube,� said Going. “There is only one source of CO2 (engine exhaust) and there is a lot less generated by the engine.� The T.O.P tank also operates quietly at just 50 decibels one metre from the tail pipe. The enclosed engine is protected from the elements and allows for easier re-starts in winter conditions as it stays warm in the engine room. The tank even has the flexibility to add glycol heat tracing out to the wellhead to help prevent freeze-ups. “It’s very operator friendly. Everything is automated as far as the exhaust valve bypass and the glycol bypass goes,� said Going. The T.O.P. tank is also designed to provide radiant heat to tank fluids that allows contaminates to separate quickly to produce heavy oil products with cleaner cuts. “You’ve got oil coming in at 10 C. It hits a pad of water at 80 C and we’ve got constant radiant heat,� explained Clarke. “There’s no violent on and off heat going to the fluids. It’s a constant radiant heat that works to separate sand, water and oil all day and all night.� The T.O.P. tank is also built to high safety standards. The engine room is equipped with a digital LEL gas detection monitor and the air inside the engine room is recycled over 10 times per hour. The engine can be turned off in the case of an emergency by simply disconnecting an exterior battery. The T.O.P tanks will be manufactured in Lloydminster by Foremost. “We are going to start with the 1,000 barrel tank and go from there. Europump has helped us out a lot,� said Clarke. Europump will be installing the engine units in the field. “They provide us with technical support in regards to their equipment,� added Going. “They are going to be manufacturing our engine skid unit that goes inside of our tank.�

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Kramer Rents moves to new location

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Regina – During the first week of March, there was plenty of activity at the new home of Kramer Rents, the Cat Rental Store. The shop area was being prepared, and offices readied, with workers moving with a purpose. Kramer Rents has been around for about two-and-a-half years and had been run out of the “Experienced Parts� portion of the main Kramer Ltd. location on the north end of Regina, west of Evraz’s steelmaking plant. This new location is on the opposite side of the Evraz plant, on the east service road of Albert Street, where it intersects Armour Road. Mike Russell was one of those workers getting ready for the big move, making frequent trips between the two locations. He works in sales and support. The new location will house The Cat Rental Store as well as their highway truck sales and services. Not long ago Caterpillar introduced its own line of highway trucks, knows at the CT660. “We’re growing,� Russell said. “Experienced Parts has been growing too.� The move will free up space for both divisions.

In total, approximately 12 people will be working in the new location, half with rentals, half with trucks. “Most of what we rent is not Cat,� Russell said. Indeed, a small excavator, which is a Caterpillar, is the largest unit they carry, with larger pieces of equipment handled out of the main dealership. “We do Cat mini-excavators and skid steers,� he said. “That 308 is as big as we get.� A 308 is about 9 tonnes, the larger end of the mini-excavator line. The rental fleet includes boom and scissorstyle man-lifts, air compressors, power hand tools like jackhammers and hammer drills, light towers/ gen sets, welders, and compaction equipment. For warming up the ground on frozen worksites, they carry closed loop glycol ground heaters. Most of these products are used for commercial construction, Russell noted. The generators are up to 100 kilowatts. Larger units than that are handled by the Kramer Energy division. At the time of the visit on March 7, he said they were planning on opening by mid-March.

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Lampman Oilmen’s Bonspiel Sixteen teams too place in the Lampman Oilmen’s Bonspiel Feb. 28-Mar. 2. The open event saw teams from Carlyle, Oxbow, Estevan, Alida, and of course, Lampman.

Acutec skip Jarrod Fleck smiles as a rock comes down the ice towards him.

The bonspiel was open to both genders. It’s organization has been taken over in recent years by the Lampman Curling Club. Photos by Brian Zinchuk

Trina Freeden glides down the ice as she release her rock. Leanne Fleck launches out of the hack

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Above: Blaise Fornwald curled with the TS&M Estevan team.

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>ĞĂĚ Ä‚Ç Ĺś Willock begins another draw of play on.

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707,305, 5,>: (WYPS Greg Henderson, technical manager for producĆ&#x; ŽŜ ĞŜŚĂŜÄ?ĞžĞŜƚ ĂŜĚ acidizing services from Trican in Calgary.

Lloydminster – Greg Henderson timed his presentation at the February technical lunch of the Lloydminster Society of Petroleum Engineers during the Olympic gold medal game in women’s hockey. Henderson is the technical manager of production enhancement and acidizing services for Trican in Calgary. He is no relation to the famous hockey Henderson of the 1972 Summit series between Canada and the Soviet Union, but he did come to Lloyd with a game plan. Henderson’s aim was to score points about solvent and stimulation fluid placement options for horizontal slotted liner applications in heavy oil. He began by pointing out that heavy oil production can suffer from normal formation damage mechanisms as well as from problems associated with high viscosity and sand. The main formation damage culprits are asphaltenes, calcium carbonate and silica. “Most heavy oil formation damage mechanisms are represented by fines flowing through the sand to the wellbore, calcium carbonate scaling, and the asphaltenes that can precipitate from heavy oil,� said Henderson. In the Lloydminster area, heavy oil is known to precipitate asphaltenes which are naturally occurring high molecular weight hydrocarbons. These will precipitate when the formation is disrupted by oil production activities. “As soon as asphaltene precipitates on the liner or in the formation, it becomes a spot where other things can start accumulating like scale and formation fines. It can make the problem worse,� said Henderson. The challenge he said is to devise the right treatment and fluid sequence to stimulate oil production beginning with identifying the problem. “We’ll look for every type of clue that we can get from the produced fluids, from samples downhole and devise the proper stimulation that will remediate the formation damage mechanism,� he said about Trican. “The second part of that is applying that expensive stimulation fluid properly so that we get the most bang for the buck.� The goal he said is to make sure the treatment goes to the damaged area in the formation and not to where oil is being produced. “That’s all about how we place that fluid in there. We want to make sure that we don’t stimulate the section that’s already producing,� said Henderson. Stimulation fluid chemistry to treat formation damage from calcium carbonate scaling, asphaltenes and fines results in specific solvent or acid treatment designs. Chemicals such as demulsifiers, surfactants and wax inhibitors can be added to a base solvent for example if required. A variety of acid treatments can also be designed to deal with issues in sandstone formations. For example, if carbonate scale is the problem, a single stage acid application is sufficient. Hydrofluoric acid in a pre-flush, main flush and after flush treatment may be required if migrating fines or silicate-based scale is the problem. Other acid treatment designs can be developed as sandstone stimulation fluids. Henderson said 50 per cent of the challenge is determining what the formation damage is and 50 per cent is the placement of the stimulation fluid. Asked which is the hardest, he said, “Generally it’s placing it properly, because in heavy oil we are dealing with extended wellbore lengths. “Sometimes there are multiple strings in the hole that we have to get around – so many times it’s the proper placement that’s hardest.�

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Henderson scores at SPE lunch Fines migration, asphaltene precipitation and various scaling issues occurring in the slotted liners can complicate remediation. “Slotted liners provide a barrier between our stimulation fluid and the formation where the damage is probably situated,� said Henderson. “So we have to devise a way of getting through the slotted liner to get our fluids to where we need it. “When it’s damaged the area to produce is reduced. “It’s all about how do we get that fluid through

the liner to where the damage is.� The optional methods range from bull heading or pumping down different strings in the wellhead and coil tubing with rotating jet nozzles, to diversion methods using foam and energizing fluids such as nitrogen. “It’s a matter of applying energy to where we need it,� said Henderson about the optional methods. “If we can devise the right placement, we can get the job done in a single run.�

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+XVN\¡V UHVHUYHV DQG RXWSXW LQFUHDVH Calgary – Husky Energy Inc. has increased its 2014 production expectations to between 330,000 to 355,000 barrels of oil

equivalent a day. The Calgary-based integrated energy company is also on track to achieve its production growth rate target of five

to eight percent from 2012 through 2017. The targets are in keeping with the release of news on March 10 that Husky’s reserves

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growth outpaced its production in 2013. This results from the addition of reserves in its oilsands business, the full scale development of its Ansell liquids-rich gas resource play in Alberta and increased heavy oil recovery from thermal developments in Western Canada. Husky has realized an average proved reserves replacement ratio over the past three years of 172 per cent excluding economic factors. Factoring economic factors, the average proved three-year reserves replacement ratio is 154 percent, ahead of the five-year average target of 140 per cent per year.

The reserves replacement ratio in 2013 was 166 per cent, excluding economic factors (164 percent including economic factors such as the low gas price environment during the year). Reserves growth reflects a broad portfolio of assets, which provide for internal growth without dependency on acquisitions and a flexible timeline for optimal development. New heavy oil thermal projects and improved recovery from existing heavy oil thermal developments resulted in the booking of an additional 127 million barrels in probable reserves. Additional drilling

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locations at Ansell in Alberta contributed to the booking of an additional 32 million boe of natural gas and natural gas liquids in proved undeveloped reserves. Plans are being advanced to increase production from Ansell to approximately 30,000 boepd in the next few years. At the Sunrise Energy oilsands project, new drilling locations added 39 million barrels (Husky W.I.) of proved undeveloped bitumen reserves in 2013. Sunrise has estimated proved plus probable plus possible reserves of 3.7 billion barrels of bitumen (0.44 billion, proved, 2.40 billion probable and 0.86 billion possible) at the end of 2013. Husky has a 50 percent working interest in the reserves. The sanctioning of the South White Rose extension in the Atlantic Region in 2013 added an additional seven million barrels of light oil in proved undeveloped reserves. At the end of 2013 Husky had total proved reserves before royalties of 1.3 billion boe.

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Hiring for All Positions ‡ Eagle offers

comprehensive health and dental beneďŹ ts ‡ Eagle offers matching RRSP contribution package ‡ Eagle offers crew bonuses for completing rig crews ‡ Experience is necessary H2S and First Aid tickets as well as a valid driver’s licence required. Preference given to candidates possessing a class 1A or 3A licence. Experience is necessary.

• Floorhands • Derrickhands • Drillers • Rig Managers •

Apply today! Email resumes to: Estevanrigjobs@iroccorp.com Or call: 306.634.8235 www.eaglerigjobs.com

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707,305, 5,>: (WYPS

)

See you at Showcase March 21-23 for incredible savings!

2202 - 50 Ave., Lloydminster

www.automotiveaddiction.ca

Toll Free 1.855.351.8999

3M TINT

BEFORE HOOD DEFLECTOR

BUSHWACKER FENDER FLARES

RBP SIDE STEP IRONCROSS BUMPER RIGID INDUSTRIES LED LIGHTING

FUEL OFF-ROAD RIMS TOYO TIRES

SIDE STEPS

BUMPERS Quality made.

Starting at

$

1449

BULL BARS

+ installation

Choose from Rolling Big Power or Go Rhino side steps for your vehicle.

Starting at

TIRE RIMS Rims for every taste and budget.

LIGHT BARS & GRILL INSERTS

399 + installation $

245

99 Light bars $ starting at + installation

Starting at

999

REMOTE CAR STARTERS

Starting at

699

$

installed

Decks starting at

$

280

+ installation

Tonneau covers. Soft tri-fold.

$

installed

Compatible with all vehicles. Wide selection of starters

99 1145 + installation

$

Level or lift your truck or SUV and maintain your factory ride!

We have a large selection of aggressive tires to choose from.

Automotive Addiction now carries popular models of car entertainment and navigational equipment loaded with built-in features and advanced connectivity for Smartphones and entertainment devices.

Starting at

TRUCK LINERS Starting at

490

$

+ installation

PROTECTION

52999

$

Standard pkg (Hood, fender, mirrors) Full pkg (Hood, fender, mirrors, bumper)

44995 $ 94995 $

)

707,305, 5,>: (WYPS

-The largest stock of replacement parts for ALL makes of Pumpjacks in Canada -Backed by the largest pumpjack service company in Canada -Large inventory of units in stock -Full installation service available 780.875.7145 www.platinumpumpjacks.com/OilBossPumpjacks Lloydminster AB | Provost AB | Drayton Valley AB | Medicine Hat AB | Kindersley SK

A Schlumberger Company

Pipeline News

SECTION C April 2014

Pipeline News was 2 sections this month. Stay tuned for next month focus: Health & Wellness

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