Pipeline News June 2014

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June 2014

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Volume 7 Issue 1

A3 Derailment in Estevan B1 Redhead Equipment B13 Husky sanctions Edam West SAGD

5HGYHUV 'LVWULFW 2LO 6KRZFDVH Amanda Unrau is 22 years old, but she has been running equipment for three years. That includes excavators, dozers and rock trucks for Dangstorp’s Service of Redvers. She ůŽŽŏĞĚ Ä‚ĹŒÄžĆŒ ƚŚĞĹ?ĆŒ ĹľĹ?ĹśĹ?ͲĞdžÄ?Ä‚Ç€Ä‚ĆšĹ˝ĆŒ Ä?ŚĂůůĞŜĹ?Äž Ä‚Ćš ƚŚĞ Ä?ŽžƉĂŜLJ͛Ć? Ä?ŽŽƚŚ͕ Ç ĹšÄžĆŒÄž ƉĞŽƉůĞ Ä?ŽƾůĚ ĆšĆŒÇ‡ ƚŚĞĹ?ĆŒ ÄžÇ†Ć‰ÄžĆŒĆ&#x;Ć?Ğ͘ &Ĺ?ĆŒĆ?Ćš ƚŚĞLJ ŚĂĚ ƚŽ ƉĹ?Ä?ĹŹ ƾƉ Ä¨Ĺ˝ĆľĆŒ ƉĞĹ?Ć? Ç Ĺ?ƚŚ Ä‚ ůŽŽƉ Ç ÄžĹŻÄšÄžÄš ŽŜ ƚŽƉ ĆľĆ?Ĺ?ĹśĹ? the bucket tooth, then insert those pegs into a similar rack. Photo by Brian Zinchuk

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PIPELINE NEWS June 2014

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June 2014 Focus

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A3

TOP NEWS

Crude oil tankers derail in centre of Estevan

Four loaded tanker cars containing crude oil derailed in the centre of Estevan on May 8.

Photo by Chad Saxon, Estevan Mercury

By Norm Park and Chad Saxon Estevan Mercury Estevan – Four rail tanker cars containing crude oil left the track in Estevan at around 11 a.m. on May 8. The incident occurred east of the CP Rail oil transloading facility and just north of the Devonian industrial subdivision.

During a media update at City Hall a few hours after the derailment emergency measures coordinator Helen Fornwald confirmed the tankers were loaded and that were “no fires or leaks at this time.”

Fornwald said Transport Canada was en route to Estevan and will be conducting an investigation into the derailment.

The City asked that the public stay away from the scene and allow emergency services and CP Rail clear access.

A cause for the derailment is not known as of press time. It occurred on a low speed section of

track and was not directly at the transloading facility which has been a source of concern and controversy since it opened in late 2011.

Fornwald added two businesses adjacent to the tracks were evacuated immediately after the derailment while Fire Rescue Services and CP personnel assessed the scene. The evacuation order was removed by Estevan first responder teams after it was confirmed there were no oil leaks or any imminent danger issues.

“Estevan Fire Services went on the scene and determined the priority level and once it was identified there were no leaks it was downgraded to let’s get this situation under control,” Fornwald said.

“We put our EMO team on standby.”

This is the first derailment in Estevan since 2004. In that case, rail cars containing ammonia derailed and forced an evacuation of homes in the immediate area.

The crude oil in the four tanker cars that were derailed in the CP Rail yard in Estevan had been

transloaded into other tank cars as of the afternoon of May 9, according to a company spokesman .

Ed Greenberg of CP Rail confirmed that the slow speed derailment did not result in any leaks from the tanker cars and the transfer of the oil from the damaged cars that began at 6 a.m. Friday was completed by early afternoon.

The damaged rail cars were then righted and moved to a main area of the company’s rail yard.

Greenberg said the activity would not affect the normal mainline rail traffic through the city.

“The final stage of the recovery will be track repair, followed by inspection and then the re-opening of the area,” he said.

Greenberg said an investigation into the cause of the incident is underway but it could take some time before that is completed.

“We will look into the cause and what led up to the derailment so we can implement the necessary changes. Safety is still the priority.” Greenberg said.

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PIPELINE NEWS JUNE 2014

BRIEFS

PSAC drill estimates soar for Sask.

Gibson building at Hardisty Site preparation and civil work for two new 300,000-bbl oil storage tanks will begin in the third quarter at Gibson Energy Inc.'s Hardisty terminal, the company said April 30 in announcing committed support from a new customer for the tanks.

The expected in-service date is early in 2016.

The two additional tanks will result in planned construction of a total of six new tanks at Hardisty, increasing total storage capacity under development to 2.3 million bbl. â&#x20AC;&#x153;The contracting of 2.3 million barrels of new storage capacity since initiating the expansion of the terminal in the third quarter of 2012 highlights the strategic value of our Hardisty land base and reaffirms the growing demand for flexibility in the delivery of crude oil to the most appropriate market,â&#x20AC;? Rick Wise, Gibson's chief operating officer, said in a news release. â&#x20AC;&#x153;Additionally, we are excited about the near-term commissioning of the unit train facility, as it will provide yet another valuable outlet for crude from our Hardisty terminal,â&#x20AC;? he said. â&#x20AC;&#x153;We believe this enhanced optionality for our existing and new customers will lend further support to the continued expansion of our undeveloped land at Hardisty.â&#x20AC;?

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

dÇ Ĺ˝ sĹ˝Ć&#x152;Ć&#x161;Ä&#x17E;Ç&#x2020; Ć&#x152;Ĺ?ĹŻĹŻĹ?ĹśĹ? Ć&#x152;Ĺ?Ĺ?Ć? Ä&#x201A;ĹśÄ&#x161; ŽŜÄ&#x17E; Ä&#x17E;ĆŠĆ? Ć&#x152;Ĺ?ĹŻĹŻĹ?ĹśĹ? Ć&#x152;Ĺ?Ĺ? Ä?ŽƾůÄ&#x161; Ä?Ä&#x17E; Ć?Ä&#x17E;Ä&#x17E;Ĺś Ä&#x17E;Ä&#x201A;Ć?Ć&#x161; ŽĨ Ä&#x201A;Ć&#x152;ĹśÄ&#x161;ƾč Ä&#x201A;Ć&#x161; Ć&#x161;Ĺ&#x161;Ä&#x17E;Ĺ?Ć&#x152; Ć&#x152;Ä&#x201A;Ä?ĹŹ ĹŻĹ˝Ä?Ä&#x201A;Ć&#x;ŽŜĆ? ĨŽĆ&#x152; Ć&#x161;Ĺ&#x161;Ä&#x17E; Ć?Ć&#x2030;Ć&#x152;Ĺ?ĹśĹ?Í&#x2022; Ç Ä&#x201A;Ĺ?Ć&#x;ĹśĹ? Ć&#x161;Ĺ˝ Ĺ?Ĺ˝ ŽƾĆ&#x161; Ĺ?Ĺś Ć&#x161;Ĺ&#x161;Ä&#x17E; ÄŽÄ&#x17E;ĹŻÄ&#x161;Í&#x2DC; /Ĩ W^ Ĺ?Ć? Ć&#x152;Ĺ?Ĺ?Ĺ&#x161;Ć&#x161;Í&#x2022; Ć&#x161;Ĺ&#x161;Ĺ?Ć? Ä?ŽƾůÄ&#x161; Ä?Ä&#x17E; Ä&#x201A; Ä?ĆľĆ?Ç&#x2021; Ç&#x2021;Ä&#x17E;Ä&#x201A;Ć&#x152; ĨŽĆ&#x152; Ć&#x161;Ĺ&#x161;Ä&#x17E;ĹľÍ&#x2DC; Photo by Brian Zinchuk

Â&#x201E; By Geoff Lee Pipeline News Calgary â&#x20AC;&#x201C; Saskatchewanâ&#x20AC;&#x2122;s projected 2014 well count has been increased by 11 per cent from 3,196 to 3,562 wells.

Thatâ&#x20AC;&#x2122;s the biggest gain of all provinces in the Petroleum Services Association of Canada revised drilling forecast since the release of the original forecast for 2014 back in October 2013.

The revised Canadian drilling forecast for 2014 issued on April 30 calls for 11,170 wells to be drilled, an increase of 370 wells from PSACâ&#x20AC;&#x2122;s first estimate.

The revised forecast represents an approximate one per cent increase over 2013 drilling levels.

PSAC bases its updated 2014 forecast on average natural gas prices of $4 Cdn/mcf (AECO) and crude oil prices of US$95 a barrel (WTI) and the Canadian-U.S. dollar exchange rate averaging $0.90. â&#x20AC;&#x153;With a longer winter than normal across Canada this year and a breakup with continued activity in Q2, drilling activity is keeping on par with our original forecast in October,â&#x20AC;? said Mark Salkeld, president and CEO of PSAC. â&#x20AC;&#x153;Activity remains steady for our member companies and many companies have been facing challenges with meeting demand as the shortage of skilled labour continues.â&#x20AC;?

The revised forecast calls for drilling levels to also rise in

British Columbia from 550 to 623 wells.

Manitoba is now forecasted to drill 45 fewer wells at 435 for the year representing a nine per cent decrease from the original projections.

PSAC also released its commissioned study on direct jobs and the number of support field jobs required for horizontal drilling and multistage hydraulic fracturing on new resource plays.

The study entitled Horizontal Well Workforce Study included four main supplier groups: location, drilling, completion, and logistics.

A large supplier workforce is required by typical wells completed in northeast British Columbia, central Alberta, and southern Saskatchewan according to the 2013 study.

The 6,128 wells examined in the study created the equivalent of 61,331 jobs based on a typical 40 hour work week, 52 weeks of the year.

Based on the well types considered in this study, the number of individuals employed on these three types of wells range from 239 to 302 per well. â&#x20AC;&#x153;The numbers are staggering when you consider how many jobs industry activity generates,â&#x20AC;? said Salkeld. â&#x20AC;&#x153;We know that the use of directional drilling with hydraulic fracturing has been critical to accessing Canadaâ&#x20AC;&#x2122;s vast resources, and now we have a much clearer idea of the workforce generated by these new generation plays.â&#x20AC;?

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A5

BRIEFS Tuscany acquires Sparky acreage at Macklin

DÄ&#x201A;Ć&#x152;Ä? tŽůÄ&#x17E;ĹśĆ?ĹŹÇ&#x2021;Í&#x2022; Ć&#x2030;Ć&#x152;Ä&#x17E;Ć?Ĺ?Ä&#x161;Ä&#x17E;ĹśĆ&#x161; ŽĨ Ć&#x161;Ĺ&#x161;Ä&#x17E; Ä?ŽžžĹ?ĆŠ Ä&#x17E;Ä&#x17E; Ä?Ä&#x17E;Ĺ&#x161;Ĺ?ĹśÄ&#x161; Ć&#x161;Ĺ&#x161;Ä&#x17E; ZÄ&#x17E;Ä&#x161;Ç&#x20AC;Ä&#x17E;Ć&#x152;Ć? KĹ?ĹŻ ^Ĺ&#x161;Ĺ˝Ç Ä?Ä&#x201A;Ć?Ä&#x17E;Í&#x2022; ŜŽĆ&#x161;Ä&#x17E;Ä&#x161; Ć&#x161;Ĺ&#x161;Ä&#x17E; Ä&#x17E;Ç&#x20AC;Ä&#x17E;ĹśĆ&#x161; Ç Ä&#x201A;Ć? Ć?ŽůÄ&#x161; ŽƾĆ&#x161;Í&#x2022; Ä&#x201A;ĹśÄ&#x161; Ç Ä&#x17E;Ä&#x201A;Ć&#x161;Ĺ&#x161;Ä&#x17E;Ć&#x152; Ä?ŽͲŽĆ&#x2030;Ä&#x17E;Ć&#x152;Ä&#x201A;Ć&#x161;Ä&#x17E;Ä&#x161;Í&#x2DC;

Redvers Oil Showcase bigger than ever Â&#x201E; By Brian Zinchuk Pipeline News Redvers â&#x20AC;&#x201C; The 5th bi-annual Redvers & District Oil Showcase held on May 8 and 9 was the biggest to date with 138 exhibitors. Approximately 1,300 people attended.

Speaking to Pipeline News at the conclusion of the banquet on May 8 that featured guest speaker Minister responsible for Energy and Resources Tim McMillan, showcase chair Marc Wolensky said, â&#x20AC;&#x153;All the heavy stuff is done.â&#x20AC;?

A whole yearâ&#x20AC;&#x2122;s planning goes into the event. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s a huge relief to have everything come together,â&#x20AC;? he said. â&#x20AC;&#x153;By the actual day, it seems so simple.â&#x20AC;?

He noted the weather co-operated. However, prior to the event, things were looking a little wet, with 10 days of rain and snow forecast. They were approached by generous donors for rig matting, if needed, and it turns out it was needed. The mats came in the weekend before the event, which was something of

a more relaxed pace than two years previous, when mats were brought in in a hurry.

With the land prepped and mats laid, organizers were able to use nearly all the land available to them, thus the 2014 showcase was near to capacity. â&#x20AC;&#x153;We were pretty close to maxed out,â&#x20AC;? Wolensky said. â&#x20AC;&#x153;We had a huge push at the start of the year, and then a lull, but closer to the date, positions filled. It wasnâ&#x20AC;&#x2122;t as fast as last time, but at the end of registration, we had a waiting list.â&#x20AC;?

He noted that people who couldnâ&#x20AC;&#x2122;t get into Weyburn have found they can get into Redvers. â&#x20AC;&#x153;We made some rounds. People were very happy with day one. Traffic was a little light but good. They made good contacts.

A friend was saying being indoors, he could have more of a conversation, be more in-depth, with a person.â&#x20AC;?

The first day culminated in a banquet with McMillan as speaker.

Attendance on the second day was lower than the first.

Tuscany Energy Ltd. announced it has recently acquired a 100 per cent interest in 567 acres adjacent to its Macklin heavy oil pool in Saskatchewan, comprised of a producing natural gas well and rights to the Sparky formation.

The company said the acquisition is significant because it increases the companyâ&#x20AC;&#x2122;s holdings in the Macklin area to a 100 per cent interest in approximately 1,400 acres of prospective oil bearing Sparky lands.

The Sparky zone at Macklin is a potentially productive oil zone with bypassed wells exhibiting log characteristics that Tuscany believes are analogous to recently developed pools situated approximately 12 miles to the west in Alberta. Logs from wells on the Macklin acreage indicate porosity and resistivity similar to vertical wells in Alberta, which led to the recent development of new oil pools by horizontal drilling.

The company noted its primary focus remains the development of the heavy oil Dina pools in Macklin and Evesham; however, development of the Sparky oil play, on which Tuscany believes it can drill up to 14 wells, is planned to start in the second half of 2014.

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

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A6

PIPELINE NEWS June 2014

PIPELINE NEWS

EDITORIAL

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

Publisher: Brant Kersey - Estevan Ph: 1.306.634.2654 Editorial Contributions: SOUTHEAST Brian Zinchuk - Estevan 1.306.461.5599 SOUTHWEST Swift Current 1.306.461.5599 NORTHWEST Geoff Lee - Lloydminster 1.780.875.5865 Associate Advertising Consultants: SOUTHEAST SASK. & MANITOBA R5 -. 0 (5g8ifl8lij8hlkj Cindy Beaulieu Candace Wheeler Kristen Oâ&#x20AC;&#x2122;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

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Estevan, we were wrong When Canadian Pacific first announced its intentions to begin operating a crude-by-rail facility in its rail yards in the centre of Estevan a few years ago, we editorially lambasted the city officials who expressed extreme reluctance at the idea.

We were wrong.

On May 8 we got a call from a prominent person in the Estevan oilpatch that there had been a derailment of crude oil tankers right in the centre of Estevan. Being on the road close to the Redvers Oil Showcase, it fell to our sister publication, the Estevan Mercury, to cover the breaking story.

Thankfully, there was no spill, and no injuries. By the next day the cars had been emptied and moved.

It could have been much, much worse â&#x20AC;&#x201C; LacMĂŠgantic worse.

The proximity of houses to the rail yard was something of concern to local residents when this transloading facility was opened. If something like Lac-MĂŠgantic had occurred, dozens of houses, along with all the occupants, could have been consumed.

Whether or not any transloading has been taking place in this instance, the fact remains that the rail yards are an integral part of Estevan, and indeed, in every prairie town. A wise man once said the First Nations were here first, then the railway, then the white man. Thereâ&#x20AC;&#x2122;s simply no way to get around it.

Where there are towns, there are rails. With it seemingly impossible to build mainline pipelines anymore, there are increasingly more crude oil tankers on those rails.

But loading facilities can be located outside of communities â&#x20AC;&#x201C; witness Stoughton, Bromhead and

Bienfait as examples. This was something Estevan city councillors stressed back then, and they were right to do so.

A few days after the Estevan derailment, CBC reported, â&#x20AC;&#x153;Forty-seven counts of criminal negligence have been filed against Thomas Harding, Jean Demaitre and Richard Labrie as well as the Montreal, Maine and Atlantic Railway Ltd., the defunct railway at the heart of the Lac-MĂŠgantic disaster.â&#x20AC;?

On May 9, a massive grass fire occurred from â&#x20AC;&#x153;Kronau to Francis, believed to have started by a spark from a Stewart Southern Railway train that had been travelling southeast from Regina,â&#x20AC;? as reported by the Leader-Post.

Anyone who has driven down Highway 33 realizes that the vast majority of cars on that railway these days are unit trains hauling crude-by-rail, originating at Crescent Pointâ&#x20AC;&#x2122;s loading facility near Stoughton. What would have happened if that grass fire hit cars on sidings in any of those towns along Highway 33? If it indeed was the cause, it would not be the first time a train sparked a fire on the prairies. However, the difference is many trains these days are hauling crude oil, not grain.

Instead of four cars on their side, as in Estevan, we could have had 100 cars enveloped in flame.

Crude-by-rail has resulted in higher profits for many companies, from oil producers to rail companies.

However, it is clear that the public distaste for it, in the wake of Lac-MĂŠgantic, is palpable, and has risen to the corporate boardroom both for the rail companies and oil producers.

Estevan and the towns along Highway 33 got off lucky. Let us pray vigilance will look after us when luck does not.

PIPELINE NEWS June 2014

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A7

OPINION

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The heavens parted and a crane swung a modular unit into place In a way, it felt like the heavens has parted and a chorus erupted. Finally, someone got it.

This was the feeling I had a few weeks ago when I toured the new modular condominium development under construction in the centre of Estevan.

The 55-unit Marisa Estevan Condos project is being built by Wilhelm Construction for Matt Dorling.

From Vancouver, Dorling clued in on the hot Estevan real estate market in 2007, in time for the Bakken boom, on the advice of his father Richard. Richard is a now-retired professional engineer who used to sell valves into the southeast Saskatchewan oilpatch, among other things.

Until a few months ago, I used to get a phone call every month or two from someone looking to build a hotel, camp, or real estate development. They would ask what I thought of the idea and where they should build. This was a result of spending most of the last six years writing about the growth in Saskatchewan, and southeast Saskatchewan in particular, and the common thread in most of those stories: the shortage of housing. Some people obviously thought I knew something about it.

I would usually point out that the type of people who build houses, people willing to work outside and swing a hammer, are in short supply. A young

guy who would, in other areas of the country, swing a hammer at a nail for $16/hour on a building site is more than happy to swing a hammer at a hammer union on a service rig for $26/hour. Even if you could bring in tradespeople from elsewhere, you had to find somewhere for them to stay during the duration of the build. Thus it has been next to impossible to get or retain building tradespeople in this region for years.

With a shortage of tradespeople, only one sizeable project that I know of had been built on time.

Nearly all the projects would be completed three to six months beyond what was initially promised.

My suggestion to all these developers, be it hotels or real estate, was to build modular. Build it somewhere far away from here, and stack it like Legos.

Additionally, while you might think another hotel is a good idea, what the market needed more than anything was rental apartments.

This brings us forward to today. I even took my kids see the crane do its work.

The Marisa project in Estevan is 55 condo units, but the developer suggests many of those units may be purchased for revenue rental properties. They’ve even qualified the project for a $10,000 per door incentive from the City of Estevan and Saskatchewan Housing Corporation for additional rental units, if

the condo buyer follows the conditions of the program and keeps it on the rental market for the agreed-to number of years. Nathan Wilhelm of Wilhelm Construction is pretty pumped about their ability to continue building such projects. It only took them four days to crane 40 modules into place; a pace Wilhelm says is remarkable. It looks like they will also hit their completion plans on time, with occupancy expected

by June 30.

As I told both Dorling and Wilhelm, this is what I have been suggesting for years to anyone who will listen. It has been refreshing to see it come into place.

Follow-on projects are in the works.

A similar project is also underway in Weyburn.

I would suggest that Carnduff and perhaps Carlyle and Oxbow would also benefit from similar modular construction.

Saskatchewan is continuing to grow, and if we are going to keep adding more people, we need more homes. That’s true not only in the oilpatch, but throughout the province. Hopefully there are more cranes in our future.

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

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*DWHZD\ SLSHOLQH QHHGV WR ÀQG PLGGOH JURXQG If the National Energy Board determines Enbridge’s proposed Northern Gateway Pipeline is in the national interest, then it will likely proceed.

However, it would be a grave error to go forward without revenue and job sharing agreements with some First Nations opposed to the line going through their territories.

They, along with many other B.C. residents, don’t like the pipeline route to Kitimat either, fearing an oil spill would ruin the coastal environment.

Clearly Enbridge for one, is not listening closely as residents of Kitimat rejected the $7.9 billion proposal in a non-binding plebiscite.

Two days later, a First Nations - led consortium held a news conference in Vancouver to announce plans to build an alternative pipeline with optional routes and in mind.

Eagle Spirit Energy Holdings Ltd. and Vancouver-based Aquilini Group told the media they have signed non-disclosure agreements with a several First Nation groups in northern B.C., including some opposed to the Enbridge project.

The Aquilini family which owns the Vancouver Canucks said it will underwrite the cost of the pipeline as long as it gets support of all First Nations through whose territory the pipeline would travel.

The group intends to file an application with the NEB only after it has addressed all First Na-

tions’ concerns and issues.

Clearly the message is this: if Enbridge were to communicate better with First Nations, the chances Northern Gateway being build on time and with the endorsement of First Nation would be much improved.

There is less chance the First Nation-led proposal would get off the ground given that fact it includes building costly refineries to ship light oil instead of bitumen.

Major companies likes Suncor rejected plans to build a refinery knowing it is not economic to do so.

In addition, a refinery would be a major source of green house gas emissions and that would fly in the face of First Nations’ environmental concerns about the Enbridge project.

In fact, the refinery aspect makes the Northern Gateway project seem environmentally friendly by comparison and paints First Nations as being the one who are out to make a buck at the expense of the environment.

Peter Howard, president and chief executive of the Canadian Energy Research Institute thinks First Nations are just looking for financial compensation and active participation in energy projects.

He said if those two points are addressed, Enbridge’s proposal has a better chance of moving forward.

Now would be the time for Enbridge to sit down with the Eagle Spirit group and make nice

with financial compensation and energy related employment and training.

The Northern Gateway will generate millions of dollars for oil companies, Enbridge and the Alberta and British Columbia governments and oil companies and it should also benefit the First Nations on the pipeline route too.

That’s what they are trying to tell Enbridge and provincial and federal government officials but no one is taking their concerns seriously.

Most First Nations communities along the route are economically poor but they have rights to the land where the pipeline needs to run, and they deserve to be properly compensated for the use of this resource.

They also need to be fully protected from health and environmental issues in the event of a spill.

If it costs $7.9 billion to build the pipeline, another billion or so in long term compensation is a lot cheaper and fairer that not having a pipeline at all or one that will cost twice that if First Nations issues are ignored.

An adversarial approach won’t work and never does. Give communications a better try.

There is still plenty of time for both sides of the issues to hammer out a deal that works well for everyone involved.

Clearly the status quo is not an option either.

The Eagle Spirit Energy group proposal and the Kitimat vote make that abundantly clear.

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

A8

PIPELINE NEWS June 2014

Pipeline News copy editor Carol Toth passes Carol Toth was an integral part of the Ć&#x2030;Ć&#x152;Ĺ˝Ä&#x161;ĆľÄ?Ć&#x; ŽŜ ŽĨ Pipeline News. Photo courtesy the Estevan Mercury

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Â&#x201E; By Brian Zinchuk Estevan â&#x20AC;&#x201C; It is with great sadness we report on the passing of a friend and colleague, Carol Toth, who had been working as copy editor for Pipeline News until late last fall. Carol died peacefully on May 1 in Estevan.

Carol, 66, had worked with our sister publication the Estevan Mercury for 45 years, retiring the spring of 2013. Even after retiring from the Mercury, she chose to continue to work with Pipeline News until failing health prevented her from doing so.

Carolâ&#x20AC;&#x2122;s career at

the Mercury began as typesetter and proofreader, and also included general office and administrative duties.

As technology evolved, her role did too, shifting primarily to proofreading.

In the mid-1980s, Carol was involved with the publication of our predecessor publication, Pipeline, which was a weekly oilpatch newspaper published in Estevan. Pipeline was printed until a slowdown in the patch caused it to be folded into the Mercury as a quarterly supplement for several decades. It was revived in 2008 after parent

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company Glacier Media purchased Lloydminster-based Pipeline News and merged it and Pipeline into a provincial petroleum monthly newspaper. Carol came onboard in 2010, reading approximately 50 to 70 pieces and up to 40,000 words a month for our paper.

Carolâ&#x20AC;&#x2122;s strong ties to Estevan and indeed much of southeast Saskatchewan meant she was a tremendous resource for our paper.

This came not only in providing history, but context, when we drafted our stories. She knew the names of companies long since sold, and could tell you about the parents of the person profiled in a particular story, and sometimes even their grandparents.

Many of the stories we have pursued have benefited from her leads or background knowledge, in addition to her scrupulous fact-checking.

If she wasnâ&#x20AC;&#x2122;t sure about something in a story, she would find out.

When it came time to proof our copy, Carolâ&#x20AC;&#x2122;s several dozen red pens kept on her desk were put to good use.

Carol Toth is predeceased by her life partner Ed Hansor and by parents Steve and Bunnie Toth. She is survived by her brother Wayne of Calgary, sister Kathie and her husband Dan Betnar of Estevan as well as niece Meghan Betnar and her husband Daryl Donovan and nephew Daniel Betnar.

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PIPELINE NEWS June 2014

A9

New gas plant announced for North Portal area Â&#x201E; By Brian Zinchuk North Portal â&#x20AC;&#x201C; With regulations curtailing venting and flaring coming into play, there is a need for additional gas plant infrastructure. Steel Reef Infrastructure Corp., a mid-stream company from Calgary has announced a new gas plant just east of North Portal which is expected to have construction begin in the first half of June.

Austin Voss, vice-president and chief operating officer with Steel Reef, spoke to Pipeline News via phone on May 7. Voss and company president and CEO Scott Southward started Steel Reef in late 2012 after having worked with Keyera Corp., a large mid-stream company in Alberta.

Steel Reef held an open house in Bienfait on May 1. The company has performed an environmental study and has a permit from the Ministry of the Economy to build the plant.

The new plant will be built six kilometres east of North Portal, along the road that runs one mile (1.6) kilometres) north of the United States border.

The location is 1-9-1-4-W2. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s a 12 million standard cubic foot per day gas plant and gathering system,â&#x20AC;? Voss said.

They will be building approximately 40 kilometres of pipeline gathering system, initially tying into five neighbouring batteries. Other companies are expected to also tie into their facility.

The gas plant will remove hydrogen sulfide and natural gas liquids such as propane and butane, producing saleable natural gas and compressing it for transmission. It ties into a nearby TransGas Pipeline with a six-inch pipeline.

In recent years, Saskatchewanâ&#x20AC;&#x2122;s natural gas production has been declining due to depressed prices, to the point where SaskEnergy, the provincial gas utility, has noted we are now a net importer of natural gas.

The total project is expected to cost between $40 and $50 million, according to Voss. He noted, â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re a widely held, but private company.â&#x20AC;?

On March 13, PFM Capital of Regina announced a follow-on investment of $13 million into Steel Reef, bringing their total investment in the company from their APEX, APEX II, SaskWorks Diversified, SaskWorks Resources to nearly $33 million.

Steel Reef has two other facilities. They are a working interest owner in a gas plant near Fort St. John, B.C., and own and operate an oil battery near Fox Creek, Alta.

The construction workforce is expected to peak at approximately 50 people on the plant, and a further 50 people on the pipeline infrastructure, although

those peaks may not happen at the same time. â&#x20AC;&#x153;We hope to have it running by the first week of December,â&#x20AC;? Voss said. â&#x20AC;&#x153;Saskatchewan is the hotspot of the oilpatch right now, in certain areas.â&#x20AC;?

Voss explained it is economic to gather natural gas and capture the liquids, and that it fits their return profile, but capturing of flare gas is driven by regulations. Existing flaring is expected to be gone by July next year, according to the regulations brought in a few years ago.

The location of the new gas plant is also just a few kilometres west of the Ceres Northgate Commodity Logistics Hub currently under construction. Voss said they have talked to Ceres about using their facilities to ship natural gas liquids, but nothing has been confirmed by this point. In an earlier story Ceres pointed out plans to add NGL handling to their facility as several gas plants were planned for the area in addition to four existing gas plants.

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PIPELINE NEWS June 2014

Where one door closes â&#x20AC;Ś Â&#x201E; By Brian Zinchuk Estevan â&#x20AC;&#x201C; On April 14 Baker Hughes had substantial layoffs in locations throughout Western Canada.

Baker Hughes spokesperson Emily Cargan, based in Calgary, said, 400 people were affected across Western Canada.

Locations impacted included Medicine Hat, Drumheller, Slave Lake, Estevan and a small maintenance facility in Calgary.

The pumping division, which includes hydraulic fracturing (i.e. fracking), cementing, acidizing and coil tubing was affected. Cargan said Baker Hughes is moving to a new business model and centralizing to larger centers. Where those centres were, however, was not revealed. â&#x20AC;&#x153;A lot of the facilities that were closed down were smaller facilities,â&#x20AC;? she noted.

On the east side of Estevan, in the RM of Estevan and just off Shand Road, a new campus was under construction for Baker Hughes this past spring.

One building was recently enclosed and a foundation is in place for a second.

However, since the layoffs, all construction activity appears to have ceased and the sign that had been put up announcing the new location is now gone. â&#x20AC;&#x153;All other product lines have not been affected,â&#x20AC;? Cargan stressed. That &ŽƾŜÄ&#x161;Ä&#x201A;Ć&#x; ŽŜ Ç Ĺ˝Ć&#x152;ĹŹ Ä?ŽŜĆ&#x; ŜƾÄ&#x17E;Ć? ŽŜ Ć&#x161;Ĺ&#x161;Ä&#x17E; ĹśÄ&#x17E;Ç DĹ?ĹŻĹŻÄ&#x17E;ŜŜĹ?ƾž ^Ć&#x; žƾůÄ&#x201A;Ć&#x; ŽŜ Ć?Ä&#x201A;ĹśÄ&#x161; Ć&#x161;Ä&#x17E;Ć&#x152;ĹľĹ?ĹśÄ&#x201A;ĹŻ ŽŜ Ć&#x161;Ĺ&#x161;Ä&#x17E; Ç Ä&#x17E;Ć?Ć&#x161; Ć?Ĺ?Ä&#x161;Ä&#x17E; ŽĨ Ć?Ć&#x161;Ä&#x17E;Ç&#x20AC;Ä&#x201A;ĹśÍ&#x2DC; dĹ?Ć&#x161;Ä&#x201A;Ĺś ĹśÇ&#x20AC;Ĺ?Ć&#x152;ŽŜžÄ&#x17E;ĹśĆ&#x161;Ä&#x201A;ĹŻ ŽŜĆ&#x161;Ä&#x201A;Ĺ?ŜžÄ&#x17E;ĹśĆ&#x161; >Ć&#x161;Ä&#x161;Í&#x2DC; Ĺ?Ć? Ä&#x161;Ĺ˝Ĺ?ĹśĹ? Ć&#x161;Ĺ&#x161;Ä&#x17E; Ć&#x161;ĆľĆ&#x152;ŜŏÄ&#x17E;Ç&#x2021; Ä?ĆľĹ?ĹŻÄ&#x161;Í&#x2DC; includes lines such as drill bits and drilling services.

$85 million buys Gear heavy oil assets underexploited, geographically focused production with low risk development locations and simple solutions to increase production value by lowering operating costs,â&#x20AC;? said the company in an April 24 statement. â&#x20AC;&#x153;The assets all produce from heavy oil reservoirs analogous to those that the Gear team have been successfully developing in the area for the past four years.â&#x20AC;?

Gear began producing heavy oil in the Maidstone area in 2013 and generated positive initial results from various reservoirs.

In Alberta, the company produces heavy oil in

the Wildmere, Vermilion and Blackfoot areas in the Lloydminster region.

The latest acquisition adds 40,000 acres of net land to Gearâ&#x20AC;&#x2122;s holdings and raises their drilling inventory to more than 400 locations.

The purchase prompted the Calgary-based company to hike its 2014 capital budget from $70 million to $85 million with plans to drill an additional seven horizontal wells and seven vertical wells on the acquired assets.

Gear also plans to carry out 20 recompletions and multiple infrastructure projects on these assets that will result in lower operating costs.

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PIPELINE NEWS June 2014

â&#x20AC;Ś Another door opens Estevan, Medicine Hat - While three of the four largest global oilfield services companies have been pulling out of Medicine Hat, with Baker Hughes being the most recent, at least one company has been able to step in with work for some of the laid-off employees Millennium Stimulation, a fracking and coil tubing company headquartered in Calgary, but with its operations base in Estevan, has been in the process of establishing its new Medicine Hat base.

Ron Deringer, base manager for Estevan, was in Medicine Hat on April 30, conducting a job fair. â&#x20AC;&#x153;We were looking for 40 people and hired 49,â&#x20AC;? he said. All of those workers are out of Medicine Hat. The vast majority of the work out of Medicine Hat will actually be in the Kindersley Area. By early May, they were already starting work as the road bans in that area of Saskatchewan were already off.

A number of Millennium workers fly in from the east to work on a rotational basis in Estevan. â&#x20AC;&#x153;We have a vast majority of our workers out of Medicine Hat,â&#x20AC;? Deringer said. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;ll keep our guys from the East,â&#x20AC;? he added, but likely wouldnâ&#x20AC;&#x2122;t be looking for more people from out there for a while as a result of the new hires picked up in Medicine Hat. As for people around Estevan who may have lost their jobs, he said, â&#x20AC;&#x153;It frees up a lot of experienced hands,â&#x20AC;? he said. â&#x20AC;&#x153;Our doors are definitely open.

Our mandate from day one is to hire local.â&#x20AC;?

Millennium operates with approximately 110 people between its two bases, with roughly 40 to 45 working in the Estevan area. They have one frac spread and one coil tubing unit working out of each location. The second coil tubing unit is hitting the ground after breakup.

Millennium is also in the process of constructing a new frac sand terminal on the west side of Estevan, adjacent to the Long Creek Railroad short line.

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A11

A12

PIPELINE NEWS June 2014

Crescent Point to acquire CanEra for $1.1 billion (Daily Oil Bulletin) Calgary – Crescent Point Energy Corp. continues to bulk up as it is set to acquire privately-held CanEra Energy Corp. and its southeast Saskatchewan assets for total consideration of $1.1 billion.

In a press release issued April 23, Crescent Point said it will acquire all of the issued and outstanding shares of CanEra, which has a large Torquay land position and production of approximately 10,000 boepd.

The $1.1-billion deal includes approximately 12.9 million Crescent Point shares, $192 million of cash consideration and the assumption of approximately $348 million of net debt.

The CanEra assets include more than 260 net sections of land with Torquay potential, of which more than 200 net sections are exploratory land and 60 net sections are in Crescent Point’s core Flat Lake area.

In mid-April, the company said it made a “significant” Torquay discovery in its core Flat Lake area of southeast Saskatchewan, which is an extension of its Three Forks resource play in North Dakota.

In total, Crescent Point now has exposure to more than 880 net sections of land with Torquay potential, of which more than 280 net sections are in the core Flat Lake area.

The CanEra assets also include high-quality, long-life southeast Saskatchewan conventional production of approximately 10,000 boepd with low decline rates, high netbacks and significant free cash flow.

The successful completion of the CanEra arrangement is also expected to drive a seven per cent reduction in Crescent Point’s total payout ratio in 2015, due to the strong cash flow-generating capability of the acquired assets and low

associated maintenance capital requirements.

“There are two major aspects of this deal that fit really well with our business plan for stable, long-term growth,” said Scott Saxberg, president and chief executive officer of Crescent Point.

“The assets consolidate and complement our conventional assets and will generate significant free cash flow, and the 260 net sections of Torquay land we gain provide further exposure and upside potential in a play that we’re very excited about.”

Guidance revised Assuming the successful completion of the CanEra arrangement on or about May 15, 2014, Crescent Point is upwardly revising its 2014 guidance for production and funds flow from operations.

The company’s 2014 exit production rate is expected to increase by seven per cent to 145,000 boepd from 135,000 boepd and its average daily production in 2014 is expected to increase by five per cent to 133,000 boepd from 126,500 boepd.

Crescent Point’s funds flow from operations for 2014 are expected to increase by six percent to $2.38 billion from $2.25 billion. Capital expenditures for the year are expected to increase by 1.4 per cent, or $25 million, to a total of $1.775 billion, which is expected to maintain CanEra’s current production levels for the year.

Strategic rationale The successful completion of the CanEra arrangement is expected to increase Crescent Point’s Torquay exposure in its core Flat Lake area by 27 per cent to more than 280 net sections.

The company has delineated a significant Torquay discovery in Flat Lake and is pleased with results to date. Combined with the CanEra assets, Crescent Point has identified more than

480 low-risk Torquay drilling locations on these combined lands.

“This acquisition adds to our low-risk drilling inventory in the Flat Lake area and provides increased exposure on the greater exploration trend,” said Saxberg. “We have a successful track record of finding and developing new resource plays that have enhanced our growth and we are excited about the potential we see in the Torquay.”

Based on an estimated annual decline rate of approximately 16 per cent, Crescent Point expects annual maintenance capital of approximately $40 million in order to maintain production from the CanEra asset base in the 10,000 boepd range for 2015.

Anticipated free cash flow of approximately $180 million from the CanEra assets would result in an estimated seven per cent reduction in Crescent Point’s total payout ratio, assuming a West Texas Intermediate oil price of US$100.

“The low decline rate of CanEra’s assets should work in tandem with our successful waterflooding programs in the Bakken and Shaunavon to continue lowering our corporate decline rate and to enhance the dual-track growth plan we’ve implemented,” said Saxberg.

The CanEra arrangement further consolidates Crescent Point’s Viewfield Bakken light oil resource play and is expected to facilitate the company’s waterflood plans in the area. CanEra is the largest remaining working-interest partner in the Viewfield Bakken waterflood project.

Other key attributes of the CanEra assets to be acquired include a netback of approximately $64 per boe based on US$100 per barrel WTI, C$4.65 per mcf AECO and a US$/C$0.90 exchange rate. As well, Crescent Point will gain tax pools estimated at approximately $600 million.

PIPELINE NEWS June 2014

A13

Swayzeâ&#x20AC;&#x2122;s now working out of Moosomin

Redvers â&#x20AC;&#x201C; Swayzeâ&#x20AC;&#x2122;s Concrete Ltd. has recently set up operations in Moosomin.

Thatâ&#x20AC;&#x2122;s according to Cory Franklin, manager for the Carnduff and Redvers area.

Itâ&#x20AC;&#x2122;s an expansion of the Carnduff-based company that already services much of southeast Saskatchewan. At Moosomin they have equipment and gravel, but no concrete plant. â&#x20AC;&#x153;Just over a year ago we began operations in Moosomin. We have three guys working there,â&#x20AC;? Franklin said, standing near a dozer that was part of their booth at the Redvers

'

Oil Showcase on May 8. The equipment at the new location includes dozers, excavators, gravel trucks, both enddump and belly varieties.

Swayzeâ&#x20AC;&#x2122;s has been nominated for a Wey-

burn Business Excellence (Weybex) award in the golden service category. â&#x20AC;&#x153;I think itâ&#x20AC;&#x2122;s going to be a busy summer,â&#x20AC;?

Franklin said when asked how the next few months are looking.

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A14

PIPELINE NEWS June 2014

PFM Capital Inc. launches APEX II Fund Â&#x201E; By Brian Zinchuk Estevan â&#x20AC;&#x201C; Regina-based PFM Capital Inc. has announced the launch of Apex II Private Equity Fund LP, a locally-managed investment fund that offers accredited investors access to a diversified portfolio of privately-owned Saskatchewan businesses. Apex II follows on the success of its predecessor, Apex Fund, which closed for new investment in 2007 and recently became fully-invested.

Randy Beattie, president and CEO of PFM Capital, visited Estevan on March 27 to meet with prospective investors. â&#x20AC;&#x153;Regarding our first fund, weâ&#x20AC;&#x2122;ve raised the capital, weâ&#x20AC;&#x2122;ve invested the capital, and now weâ&#x20AC;&#x2122;re going to market to raise our next one,â&#x20AC;? Beattie said. â&#x20AC;&#x153;We want to introduce private equity into individual and institutional investment portfolios.â&#x20AC;?

Private equity is an asset class where investors or investment funds make direct investments in privately-held companies. In Saskatchewan, growing

ZÄ&#x201A;ĹśÄ&#x161;Ç&#x2021; Ä&#x17E;Ä&#x201A;ĆŤÄ&#x17E;Í&#x2022; Ć&#x2030;Ć&#x152;Ä&#x17E;Ć?Ĺ?Ä&#x161;Ä&#x17E;ĹśĆ&#x161; Ä&#x201A;ĹśÄ&#x161; K ŽĨ W&D Ä&#x201A;Ć&#x2030;Ĺ?Ć&#x161;Ä&#x201A;ĹŻ /ĹśÄ?Í&#x2DC;Í&#x2022; ĹľÄ&#x201A;Ä&#x161;Ä&#x17E; Ä&#x201A; Ć&#x2030;Ĺ?Ć&#x161;Ä?Ĺ&#x161; Ć&#x161;Ĺ˝ Ć&#x2030;Ĺ˝Ć&#x161;Ä&#x17E;ĹśĆ&#x;Ä&#x201A;ĹŻ Ĺ?ĹśÇ&#x20AC;Ä&#x17E;Ć?Ć&#x161;Ĺ˝Ć&#x152;Ć? Ĺ?Ĺś Ć?Ć&#x161;Ä&#x17E;Ç&#x20AC;Ä&#x201A;Ĺś ŽŜ DÄ&#x201A;Ć&#x152;Ä?Ĺ&#x161; ĎŽĎłÍ&#x2DC; Photo by Brian Zinchuk

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companies have historically experienced difficulty accessing private equity capital, finding themselves crowded-out by larger companies in more denselypopulated provinces. Local private equity firms use a portfolio approach to deploy significant capital into the provinceâ&#x20AC;&#x2122;s business community while offering Saskatchewan residents an opportunity to invest at home.

Saskatchewanâ&#x20AC;&#x2122;s private capital ecosystem has evolved considerably over the past 15 years, with heightened recognition of the provinceâ&#x20AC;&#x2122;s economic strengths encouraging investors to look to the province for investment opportunities. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s easier to get people to invest in Saskatchewan now â&#x20AC;&#x201C; even Saskatchewan residents,â&#x20AC;? Beattie explained. â&#x20AC;&#x153;Prospective investors can base investment decisions on long-term fund track records, management track records â&#x20AC;&#x201C; something that didnâ&#x20AC;&#x2122;t exist in Saskatch-

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ewan in the 1990s.â&#x20AC;?

PFM Capital has based Apex IIâ&#x20AC;&#x2122;s investment philosophy on the firmâ&#x20AC;&#x2122;s established model, investing in Saskatchewan-focused small- and mediumsized companies in the energy, energy services, manufacturing and value-added agriculture sectors. â&#x20AC;&#x153;We have a tendency to be a later-stage investor versus an early-stage investor,â&#x20AC;? says Beattie. â&#x20AC;&#x153;Thatâ&#x20AC;&#x2122;s a little different in the energy sector, but in other industries we look for companies that have been around a while. Weâ&#x20AC;&#x2122;re interested in growth plans and management buyouts.â&#x20AC;?

Examples of Apex Fundâ&#x20AC;&#x2122;s energy sector investments include Firesky Energy, Villanova Oil Corp., Steel Reef Infrastructure Corp., Stampede Drilling, Elkhorn Resources and Plains Environmental.

Continuing to accept subscriptions through June 2013, Apex II has received commitments exceeding $58 million from institutional and accredited individual investors and has begun to deploy capital to Saskatchewan businesses. â&#x20AC;&#x153;Our firm does about $60 to $70 million of capital placement per year,â&#x20AC;? says Beattie. â&#x20AC;&#x153;That number has been growing each and every year weâ&#x20AC;&#x2122;ve been in the market. Weâ&#x20AC;&#x2122;re very proactive in how we find deals.â&#x20AC;?

The foremost qualifier of prospective investees is their potential to drive wealth creation for the fundâ&#x20AC;&#x2122;s investors. Seeing Saskatchewan benefit is an exciting by-product. â&#x20AC;&#x153;If you can work in your own backyard, itâ&#x20AC;&#x2122;s not a bad place to work. We know this province, weâ&#x20AC;&#x2122;re close to it, we have strong networks here. It doesnâ&#x20AC;&#x2122;t mean we wonâ&#x20AC;&#x2122;t place capital in other areas if there could be a benefit to our investors, but deal flow is certainly strong enough here to keep our focus on Saskatchewan.â&#x20AC;?

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PIPELINE NEWS June 2014

A15

Estevan Energy Expo takes place June 11-13

By Brian Zinchuk Estevan –The first Estevan Energy Expo will be held June 11-13, hosted by the by the Estevan Chamber of Commerce.

“We have 25 booths sold now,” Michel Cyrenne, executive director of the Estevan Chamber of Commerce said in early May. They would like to have at least 30. The maximum is 40.

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. The exhibition will be open to the general public, however, there is a fee to attend certain aspects of the event.

Due to prior commitments, Tim McMillan, minister responsible for Energy and Resources, will not be able to attend, however a replacement provincial representative is expected in his place.

Other speakers include 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.

A recent change in plans means tours will be offered of the Shand Power Station, not the Boundary

Dam Power Station.

The event will kick off with a supper on June 11.

The next day will see speakers throughout the day,

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starting at breakfast.

Pipeline News is a media sponsor of the Estevan Energy Expo.

3,3(/,1( 1(:6 Saskatchewan’s Petroleum Monthly

hŶŝƋƵĞ ĐĂƐŝŶŐ ďƵŽLJĂŶĐLJ ƐLJƐƚĞŵ ŚĞůƉƐ ůĂŶĚ ĐĂƐŝŶŐ ŝŶ ůŽŶŐ ůĂƚĞƌĂůƐ ĂŶĚ ĚŝĸĐƵůƚ ĨŽƌŵĂƟŽŶƐ dŚĞ ŝƌ>ŽĐŬdD ƐLJƐƚĞŵ ŚĞůƉƐ ůĂŶĚ ĐĂƐŝŶŐ Ăƚ Ă ŶŽŵŝŶĂů ĐŽƐƚ ĂŶĚ ǁŝƚŚͲ ŽƵƚ ŝŵƉĞĚŝŶŐ ĐĂƐŝŶŐ ĂŶĚ ĐĞŵĞŶƟŶŐ ŽƉĞƌĂƟŽŶƐ͘ ŶŚĂŶĐĞĚ ďƵŽLJĂŶĐLJ ŽĨ ƚŚĞ ĂŝƌͲĮůůĞĚ ůĂƚĞƌĂů ƐĞĐƟŽŶ ƌĞĚƵĐĞƐ ƐůŝĚŝŶŐ ĨƌŝĐƟŽŶ ŵŽƌĞ ƚŚĂŶ ϱϬй͕ ǁŚŝůĞ ƚŚĞ ŇƵŝĚͲĮůůĞĚ ǁĞŝŐŚƚ ŽĨ ƚŚĞ ǀĞƌƟĐĂů ƐĞĐƟŽŶ ƉƌŽǀŝĚĞƐ ĂĚĚŝƟŽŶĂů ĨŽƌĐĞ ƚŽ ƉƵƐŚ ƚŚĞ ƐƚƌŝŶŐ ƚŽ ƚŚĞ ƚŽĞ͘ ŌĞƌ ůĂŶĚŝŶŐ͕ ŝŶĐƌĞĂƐĞĚ ĐĂƐŝŶŐ ƉƌĞƐƐƵƌĞ ĨƌĂŐŵĞŶƚƐ ƚŚĞ ƐĞĂů ƚŽ ĂůůŽǁ ĐŝƌĐƵůĂƟŽŶ ĂŶĚ ĐĞŵĞŶƟŶŐ͘ dŚĞ ŝƌ>ŽĐŬ ƐLJƐƚĞŵ ŚĂƐ ǁŽƌŬĞĚ ŝŶ ŚƵŶĚƌĞĚƐ ŽĨ ǁĞůůƐ͕ ŝŶĐůƵĚŝŶŐ ůĂƚĞƌĂůƐ ŐƌĞĂƚĞƌ ƚŚĂŶ ϭϬ͕ϬϬϬ ŌͶĞǀĞŶ ǁŚĞƌĞ Ăůů ŽƚŚĞƌ ĞīŽƌƚƐ ĨĂŝůĞĚ͘

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©2014, NCS Energy Services, LLC. All rights reserved. AirLock, Multistage Unlimited, and “Leave nothing behind.” are trademarks of NCS Energy Services, LLC.

A16

PIPELINE NEWS June 2014

&UXGH E\ UDLO QRW Ă&#x20AC; UVW FKRLFH &UHVFHQW 3RLQW Â&#x201E; By James Mahony (Daily Oil Bulletin) Calgary â&#x20AC;&#x201C; Crescent Point Energy Corp. does not see crude-by-rail as a first choice, the companyâ&#x20AC;&#x2122;s chief executive told reporters following its annual meeting in Calgary May 9. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re not really proponents of moving crude-byrail as the first option,â&#x20AC;? said CEO Scott Saxberg. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re proponents of moving crude by pipeline as the first option and rail is a safety [option] for us.â&#x20AC;?

Asked specifically about pipeline versus rail, he clarified the companyâ&#x20AC;&#x2122;s view. â&#x20AC;&#x153;Thereâ&#x20AC;&#x2122;s no doubt that moving crude oil through pipelines is the most efficient, economic and safest way of moving [it],â&#x20AC;? he said, adding that rail nonetheless offers his company a needed source of security. â&#x20AC;&#x153;(Rail) is our safety valve. Thereâ&#x20AC;&#x2122;s only one pipeline running through Saskatchewan that we have access to: the (Enbridge Inc.) pipeline. Now, that will change with TransCanada Corporationâ&#x20AC;&#x2122;s [proposed Energy East] pipeline in the future, but at the moment, thereâ&#x20AC;&#x2122;s only one pipeline. If weâ&#x20AC;&#x2122;re restricted from (using it) â&#x20AC;Ś we have no ability to move our crude out of Saskatchewan.â&#x20AC;?

Saxberg estimated Crescent Point has access to the means to move roughly 70,000 bbl. of oil a day by rail, although volumes varied from 20,000 to 50,000

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3,3(/,1( 1(:6

or 60,000 bbl. a day in recent months. Asked about the relative risk of moving crude by rail, versus using a pipeline, he elaborated. â&#x20AC;&#x153;Relatively speaking of the risks (of rail versus pipeline), itâ&#x20AC;&#x2122;s a relativeness argument,â&#x20AC;? he said. â&#x20AC;&#x153;The risks of moving crude by rail are pretty small. Itâ&#x20AC;&#x2122;s a relativeness relative to pipe.â&#x20AC;?

Like other producers that move oil by rail, Crescent Point has found that rail can pay a premium for shippers, especially at times â&#x20AC;&#x201C; such as year-end â&#x20AC;&#x201C; when many of Western Canadaâ&#x20AC;&#x2122;s oil-shippers are pushing to get their product into a pipeline.

Last December, as competition for pipeline space heated up, Crescent Point realized a premium of roughly $10 per bbl. on oil cargoes it switched to rail from pipe, although Saxberg acknowledged that the premium involved can vary, depending on the circumstances, between $2 and $10 per bbl. â&#x20AC;&#x153;Three years ago, there was no rail. If you put it into context, itâ&#x20AC;&#x2122;s about the movement of crude, rail, and all the infrastructure being built around refining and everything with rail, itâ&#x20AC;&#x2122;s in its infancy. Itâ&#x20AC;&#x2122;s early days,â&#x20AC;? he said.

As for any increased liability that might come with moving crude by rail, the company has limited that prospect by not choosing to own any of the tanker cars

involved, he told reporters.

Also following May 9â&#x20AC;&#x2122;s annual meeting, Saxberg said he sees no major acquisitions on the radar for Crescent Point in the remainder of this year. â&#x20AC;&#x153;We did a pretty significant transaction already [this year]. â&#x20AC;&#x153;I donâ&#x20AC;&#x2122;t see any big, significant transactions [the rest of ] this year.â&#x20AC;?

In a billion-dollar-plus deal in April, Crescent Point acquired CanEra Energy Corp., gaining production of roughly 10,000 boepd in southeast Saskatchewan.

While unlikely to see a deal of similar size in the rest of the year, the Canadian heavyweight could nonetheless see other deals, he said.

Saxberg cited â&#x20AC;&#x153;smaller opportunities available in the shorter term,â&#x20AC;? without offering specifics. Roughly 90 per cent of Crescent Pointâ&#x20AC;&#x2122;s current production is Canadian, the balance, from the United States. â&#x20AC;&#x153;Long-term, in the next year or so, weâ&#x20AC;&#x2122;re opportunistic,â&#x20AC;? he added. â&#x20AC;&#x153;Last year, we didnâ&#x20AC;&#x2122;t do any transactions. There wasnâ&#x20AC;&#x2122;t really a good, strong opportunity â&#x20AC;Ś that we felt was compelling enough. This year, thereâ&#x20AC;&#x2122;s been more activity from that perspective.â&#x20AC;?

He attributed increased merger and acquisition activity in recent months to the assets now on the market, to a better understanding by sellers of where commodity prices are headed, helped by their willingness to make deals at todayâ&#x20AC;&#x2122;s oil and gas prices. â&#x20AC;&#x153;[Before], there was a buyer-seller spread that sort of shut down deals for a period of time,â&#x20AC;? he said. â&#x20AC;&#x153;Now, youâ&#x20AC;&#x2122;ve seen that gap closing. Thatâ&#x20AC;&#x2122;s why there have been several transactions by other companies, because theyâ&#x20AC;&#x2122;ve now come to terms with the marketplace.â&#x20AC;?

Saskatchewanâ&#x20AC;&#x2122;s Petroleum Monthly

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PIPELINE NEWS June 2014

Frustrated over delay Calgary â&#x20AC;&#x201C; Saskatchewan Premier Brad Wall and Alberta Premier Dave Hancock voiced their frustration over the latest delay in the approval process of the Keystone XL pipeline made by the U.S. State Department on April 18.

Russ Girling, president of TransCanada Corp. that proposes to build the 1,900 kilometre 36-inch pipeline to ship Alberta crude to Nebraska was also disappointed by the news.

The State Department said it was extending the agency comment period citing it needed to wait until the Nebraska Supreme Court settles a dispute on the route the $5.4 billion pipeline should take. â&#x20AC;&#x153;That pipeline route is central to the environmental analysis for the project and if there are changes to the route it could have implications,â&#x20AC;? a senior State Department official told reporters.

The State Department is seeking the input of eight federal agencies to determine if the pipeline is in the national interest of the U.S. â&#x20AC;&#x153;We are extremely disappointed and frustrated with yet another delay,â&#x20AC;? said Girling in a statement.

He went on to say â&#x20AC;&#x153;another delay is inexplicableâ&#x20AC;? given the main Keystone pipeline with similar metrics to the Keystone XL, began shipping oil in 2010 and took just 21 months to approve. â&#x20AC;&#x153;After more than 2,000 days, five exhaustive environmental reviews and over 17,000 pages of scientific data, Keystone XL continues to languish,â&#x20AC;? said Girling.

Wall also voiced his irritation over the latest delay knowing the project has already passed the State Departmentâ&#x20AC;&#x2122;s own rigorous environmental impact assessment. â&#x20AC;&#x153;This decision by the U.S. government is a major disappointment,â&#x20AC;?

Wall said. Â â&#x20AC;&#x153;The Keystone XL pipeline has been studied long and hard. Â

â&#x20AC;&#x153;The pipeline will create thousands of jobs on both sides of the border, offers a safe and efficient method of moving large volumes of oil, and according to the State Department will not contribute to a net increase in greenhouse gas emissions. â&#x20AC;&#x153;This delay represents a major blow to the energy industry in Saskatchewan and in Canada and will place unnecessary strain on relations with our largest trading partner,â&#x20AC;? said Wall.

Speaking for Albertans, Hancock said Keystone XL will provide the U.S. with energy security, jobs and a dependable energy source from a friendly ally. â&#x20AC;&#x153;Our government has been clear that opening markets is our number one economic priority because more markets mean more long-term opportunities for all Canadians. â&#x20AC;&#x153;Albertaâ&#x20AC;&#x2122;s commitment to responsible environmental management strongly positions us as the safest and most secure energy supplier to our American neighbours,â&#x20AC;? stressed Hancock.

A portion of the Keystone XL project would run through Saskatchewan â&#x20AC;&#x201C; providing jobs and freeing-up pipeline capacity so that more Saskatchewan oil can enter the North American pipeline system. Approval of the Keystone XL pipeline is important for Saskatchewan considering recent grain transportation challenges Saskatchewan producers are facing because a large number of rail cars have been diverted to ship oil. â&#x20AC;&#x153;Saskatchewan grain, potash, and other commodities suffer every day the Keystone XL pipeline is not being built,â&#x20AC;? Wall said.  â&#x20AC;&#x153;The United States needs to quit wavering and make a decision based on the facts, which support the construction of Keystone.â&#x20AC;? Wall noted the new delay in the Keystone approval process comes as rail shipments of crude oil throughout

North America continue to grow, along with the environmental hazards associated with those shipments.

In the U.S., rail shipments of oil grew by more than 4,000 per cent from 2008 to 2013 â&#x20AC;&#x201C; from 9,500 carloads to an estimated 400,000 carloads in just five

years, according to the Association of American Railroads.

In 2013, more crude oil â&#x20AC;&#x201C; 4.35 million litres was spilled in U.S. railway incidents than in the past 37 years combined, according to the Pipeline and Hazardous Materials Safety Administration.

The route of Keystone XL pipeline shown by the blue dotted line will help to complete TransCanada Corp.â&#x20AC;&#x2122;s Keystone system. The U.S. State Department has delayed Ć&#x161;Ĺ&#x161;Ä&#x17E; Ä&#x201A;Ć&#x2030;Ć&#x2030;Ć&#x152;Ĺ˝Ç&#x20AC;Ä&#x201A;ĹŻ Ć&#x2030;Ć&#x152;Ĺ˝Ä?Ä&#x17E;Ć?Ć? Ä?Ĺ?Ć&#x; ĹśĹ? Ä&#x201A; Ä?ŽƾĆ&#x152;Ć&#x161; Ä?Ĺ&#x161;Ä&#x201A;ĹŻĹŻÄ&#x17E;ĹśĹ?Ä&#x17E; ŽĨ Ć&#x161;Ĺ&#x161;Ä&#x17E; Ć&#x152;ŽƾĆ&#x161;Ä&#x17E; Ć&#x161;Ĺ&#x161;Ć&#x152;ŽƾĹ?Ĺ&#x161; EÄ&#x17E;Ä?Ć&#x152;Ä&#x201A;Ć?ĹŹÄ&#x201A;Í&#x2DC;

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Brian Dangstorp tries the mini-excavator challenge, picking up pegs with the teeth of the bucket.

Growing town, growing company, growing show Â&#x201E; By Brian Zinchuk Redvers â&#x20AC;&#x201C; Brian Dangstorp, owner of Dangstorpâ&#x20AC;&#x2122;s Services in Redvers, wore plenty of smiles on May 8 and 9. As mayor of Redvers he declared the Redvers Oil Showcase to be a success.

Dangstorp had been mayor for three years. â&#x20AC;&#x153;You canâ&#x20AC;&#x2122;t believe how the community comes together for a show like this,â&#x20AC;? he said. â&#x20AC;&#x153;The showâ&#x20AC;&#x2122;s grown. It has gotten more exhibitors and lots of people from Manitoba. One guy told us today this is as big as Medicine Hatâ&#x20AC;&#x2122;s show.â&#x20AC;?

Dangstorpâ&#x20AC;&#x2122;s Service, like the oil showcase, has evolved and expanded in recent years. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re into environmental work with our hoes and rock trucks. Before, we were just lease-building and roads,â&#x20AC;? he said. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re doing oil spill cleanups and local road building, ad lots of lease prep,â&#x20AC;? Dangstorp said.

In addition to rock trucks and three trackhoes, they also have a mini-excavator. It was put to good use in their oil showcase display, where visitors to the booth could try their hand at precision excavator operation. ɸ Page A19

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This is the view from the drivers seat on the mini-excavator challenge. It wasn't easy.

PIPELINE NEWS June 2014 Éş Page A18

and elementary school grades are full, with 30plus kids per grade. Ten to 12 years ago, we were wondering where that was going to go.â&#x20AC;?

As for the near future in the surrounding oilpatch, Dangstorp said, â&#x20AC;&#x153;It looks like there will be some good activity.â&#x20AC;?

King, Brian Dangstorpâ&#x20AC;&#x2122;s Ä&#x161;Ĺ˝Ĺ?Í&#x2022; Ä?Ä&#x201A;Ĺś Ĺ˝Ĺ&#x152;Ä&#x17E;Ĺś Ä?Ä&#x17E; ĨŽƾŜÄ&#x161; Ä&#x201A;Ć&#x161; Ĺ&#x161;Ĺ?Ć? Ć?Ĺ?Ä&#x161;Ä&#x17E;Í&#x2DC; Ä&#x201A;ĹśĹ?Ć?Ć&#x161;Ĺ˝Ć&#x152;Ć&#x2030;Í&#x203A;Ć? Ä?ŽžĆ&#x2030;Ä&#x201A;ĹśÇ&#x2021;Í&#x2022; Ä&#x201A;ĹśĹ?Ć?Ć&#x161;Ĺ˝Ć&#x152;Ć&#x2030;Í&#x203A;Ć? ^Ä&#x17E;Ć&#x152;Ç&#x20AC;Ĺ?Ä?Ä&#x17E;Í&#x2022; Ĺ&#x161;Ä&#x201A;Ć? Ĺ?Ć&#x152;Ĺ˝Ç Ĺś Ĺ˝Ç&#x20AC;Ä&#x17E;Ć&#x152; Ć&#x161;Ĺ&#x161;Ä&#x17E; Ç&#x2021;Ä&#x17E;Ä&#x201A;Ć&#x152;Ć? Ä&#x201A;ĹśÄ&#x161; ĹśĹ˝Ç Ć&#x2030;Ć&#x152;Ĺ˝Ç&#x20AC;Ĺ?Ä&#x161;Ä&#x17E;Ć? Ä&#x17E;ĹśÇ&#x20AC;Ĺ?Ć&#x152;ŽŜžÄ&#x17E;ĹśĆ&#x161;Ä&#x201A;ĹŻ Ä?ĹŻÄ&#x17E;Ä&#x201A;ŜƾĆ&#x2030; Ć?Ä&#x17E;Ć&#x152;Ç&#x20AC;Ĺ?Ä?Ä&#x17E;Ć? Ĺ?Ĺś Ä&#x201A;Ä&#x161;Ä&#x161;Ĺ?Ć&#x;ŽŜ Ć&#x161;Ĺ˝ Ä&#x161;Ĺ?Ć&#x152;Ć&#x161; žŽÇ&#x20AC;Ĺ?ĹśĹ?Í&#x2DC;

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The challenge worked like this: There were two identical racks of four vertical pipes, set up in a square pattern.

Inside the pipes were four pegs, smaller pipes with a ring welded on the end. You had to pick up the pegs one at a time using the teeth of the bucket and then shift them over to the other rack.

Picking them up wasnâ&#x20AC;&#x2122;t that hard, but since the pegs didnâ&#x20AC;&#x2122;t have a lot of slop, putting them back into the next rack took a steady hand. Additionally, the challenge was to get it done in under three minutes.

Several years ago they picked up a frozen topsoil cutter, a dozer attachment that is used to break up frozen topsoil. â&#x20AC;&#x153;A lot of people like it,â&#x20AC;? Dangstorp said.

His staff has grown to 15 to 20 people. â&#x20AC;&#x153;We do whatever there is to do with dirt â&#x20AC;&#x201C; landscaping, acreages, farmyards, bin yards. We did a few of those last year. Itâ&#x20AC;&#x2122;s just like a battery,â&#x20AC;? he said.

Compaction is a big thing now. No longer is

just moving dirt around enough.

As mayor Dangstorp is pleased how Redvers is progressing with its hospital set to re-open. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;ll have three doctors this summer,â&#x20AC;? he said.

There are brand new condominiums near the hospital as well.

Two years ago Redvers saw a tremendous influx of workers as it was the base of operations for construction of Enbridge Saskatchewanâ&#x20AC;&#x2122;s Bakken expansion pipeline which ran near the town. â&#x20AC;&#x153;It was a good boost to our town.

We were very happy Surerus (the contractor) chose use for their yard,â&#x20AC;?

Dangstorp said.

The town rolled out the red carpet, he noted.

Around the same time, Redvers gained a new hotel, the Western Star Inn and Suites, and, prior to that, a PTI camp.

The population is now around the 1,000 mark, a number he noted there had been some uncertainty about before. Things are on the upswing, with the population becoming younger. â&#x20AC;&#x153;Our kindergarten

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A20

PIPELINE NEWS June 2014

PIPELINE NEWS June 2014

A21

Is modular construction the solution to Estevanâ&#x20AC;&#x2122;s housing shortage?

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Â&#x201E; By Brian Zinchuk Estevan â&#x20AC;&#x201C; The components came in like giant Lego blocks, hauled on a semi. The difference was they took up two lanes of traffic when moving down the road, and required a 330-ton crane to erect.

The end result is a 55-unit condominium built in the centre of Estevan in lightning-fast time. From first scratching dirt in November last year, it is expected to be ready for occupancy by June 30.

The project is called the Marisa Estevan Condos, named after the daughter of the developer, Vancouver-based Matt Dorling. With housing being a crucial factor in oilfield in southeast Saskatchewan, this project, and subsequent ones like it, may make a dent on the chronic shortage of places to live.

Pipeline News toured the new condominium with builder Nathan Wilhelm of Wilhelm Construction Service Inc., an Estevan-based general contractor.

Theyâ&#x20AC;&#x2122;re the ones who have pieced together this mammoth building set. Wilhelmâ&#x20AC;&#x2122;s confident in their abilities to do more, and eager to have a go at it.

The foundation is built on driven piles. The building itself is made up of 40 boxes, or modules, comprising a total of 55 living units across four floors. The first floor has 13 rooms and mechanical spaces, while the remaining floors have 14 rooms. Itâ&#x20AC;&#x2122;s serviced by an elevator in the middle. â&#x20AC;&#x153;Each box is 72-feet long and 12 to 19 feet, six inches wide,â&#x20AC;? Wilhelm said, adding, â&#x20AC;&#x153;you can go up to 24 feet wide in the modular world.â&#x20AC;?

They were able to crane all the 40 boxes into position in a brief four days in March, thanks in part to agreeable weather. Thatâ&#x20AC;&#x2122;s a lot quicker than similar projects in Regina and Weyburn, Wilhelm pointed out.

There are six floorplans, including larger and smaller two-bedroom suites and one bedroom suites.

All suites come equipped with a washer, dryer, fridge, stove, dishwasher and microwave/range hood. All appliances are black. â&#x20AC;&#x153;Everyoneâ&#x20AC;&#x2122;s got a balcony and a storage room off the balcony with an electrical plug-in for a freezer,â&#x20AC;? Wilhelm said, showing off a fourth-floor suite.

The washrooms have four pieces, with a tub/shower, toilet and sink. All suites have a single bathroom, but one layout has dual sinks.

The cabinetry and flooring in the kitchen and bathroom are laminate.

Thereâ&#x20AC;&#x2122;s carpet in the bedrooms and living rooms. Some designs have a sit-up bar for dining at the end of the kitchen.

Thereâ&#x20AC;&#x2122;s plenty of separation between units, which should make a difference for soundproofing. First thereâ&#x20AC;&#x2122;s a 5/8 inch drywall sheet, then ½ inch OSB sheet, a 2x4 inch stud, then a 2 inch air gap filled with insulation. This pattern repeats in reverse order, making up for 11 inches of separation between the insides of individual units. Thereâ&#x20AC;&#x2122;s a similar spacing vertically between floors and ceilings, but making up a total of 22 inches. â&#x20AC;&#x153;Your sound transmission class numbers are a lot higher,â&#x20AC;? Wilhelm said so it will be quiet. â&#x20AC;&#x153;This is a boiler heat building,â&#x20AC;? he noted and there are sprinklers located throughout the building..

Sprinklers are located throughout the building.

In storage rooms is an integrated data box for television and Internet, with room for expansion for future technologies. The box includes power plug-ins for a modem.

Wilhelm said a one bedroom suite can be purchased in the $160,000s, while a large two-bedroom runs in the $250,000s. â&#x20AC;&#x153;This price point is good,â&#x20AC;? he said, adding, new Canadians canâ&#x20AC;&#x2122;t get approved for mortgages over $200,000, so this will be attractive to them. Some two-bedroom suites are under $200,000.

The modules are built in Boise, Idaho, a centre for modular construction. â&#x20AC;&#x153;Thereâ&#x20AC;&#x2122;s some intricate engineering that goes into it,â&#x20AC;? Wilhelm said. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re looking at doing this modular construction for single family as well, i.e. 1,400 to 1,600 square-foot bungalows, or craning in a duplex. Weâ&#x20AC;&#x2122;re trying both ends of the spectrum. This is big, and weâ&#x20AC;&#x2122;re doing a duplex. â&#x20AC;&#x153;The exciting thing about modular for us is we want to do more research for modular for health care, nursing homes, student housing and office space in addition to residences.â&#x20AC;?

Wilhelm Construction has an in-house design team and an architectural firm out of Regina on retainer. â&#x20AC;&#x153;We have, right now, approximately 15 people,â&#x20AC;? he said. When setting buildings, they need 18. Thatâ&#x20AC;&#x2122;s a far cry from the normal way of putting together such condo complexes. â&#x20AC;&#x153;If you were building conventional stick-built, you would easily need 50plus people,â&#x20AC;? he said. â&#x20AC;&#x153;And where are you got to find a place to put 50 tradespeople in Estevan? The man camp?â&#x20AC;?

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PIPELINE NEWS June 2014

Going modular with housing developments Estevan â&#x20AC;&#x201C; The ongoing housing shortage in Estevan has been an issue for years, both for the community and the oilpatch. Matt Dorling, a real estate developer from Vancouver who got his start in vending machines, has some projects on the go that will help address those concerns. His solution? Go modular. â&#x20AC;&#x153;My dad was a pump and valve salesman, flying all over Western Canada,â&#x20AC;? he said. His father Richard, is a now retired professional engineer.

In 2007, Dorling got out of his vending machine business and got into real estate. His fatherâ&#x20AC;&#x2122;s advice? Check out Estevan.

The umbrella company is Pinetree Wholesale Ltd. At 43-years-of-age, Dorling is the sole owner. â&#x20AC;&#x153;We broke ground on Nov. 23. We will be finished in six weeks. We will be ready for occupancy June 30,â&#x20AC;? he said.

Pipeline News spoke to Dorling by phone in early May. He said at the time, â&#x20AC;&#x153;Iâ&#x20AC;&#x2122;m confident weâ&#x20AC;&#x2122;re right on schedule. The modules are on site, placed and connected. Stucco starts Monday morning.

This is far from Dorlingâ&#x20AC;&#x2122;s first real estate property in Estevan. He first got into business in Estevan eight years ago, and has had a bunch of commercial properties over the years.

He picked up 638 Isabelle Street not too long ago, an apartment building constructed in 2011 on a former school site. All the subtrades for that proj-

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ect were brought in from out of province, he noted. A stick-built, four-storey building with an elevator, it was built in a 10 month window. This new project was built in seven months. ɸ Page A23 This crane got all 40 units in place in just four days in March, thanks to favourable weather.

PIPELINE NEWS June 2014

A23

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/ĹśĆ&#x161;Ä&#x17E;Ć&#x152;Ĺ?Ĺ˝Ć&#x152; ŽĨ ŽŜÄ&#x17E; Ć&#x161;Ĺ&#x161;Ä&#x17E; Ć?ĆľĹ?Ć&#x161;Ä&#x17E;Ć? Ć&#x161;Ĺ˝ Ä?Ä&#x17E; Ä?ŽžĆ&#x2030;ĹŻÄ&#x17E;Ć&#x161;Ä&#x17E;Ä&#x161; Ć?ŽŽŜÍ&#x2DC;

Éş Page A22 His first new construction residential unit was a five-plex in downtown Estevan. It was presold before occupancy, showing the strength of the market.

It was a modular homes project in Macoun started in 2010 and completed in 2011 that really convinced Dorling modular was the way to go. There were six homes, varying from 1,000 to 1,300 square feet. Initially rental units, four have been sold and the remaining two are now for sale. Those units were made

by SRI Homes in Estevan.

The Macoun project made Dorling realize the efficiencies in modular construction. They are built in a controlled environment, with maximum efficiencies, the least amount of labour and the least amount of wastage, according to Dorling. Much of the building materials actually originate in Canada.

Guerdon Homes of Boise, Idaho, was chosen to make the modules. Thatâ&#x20AC;&#x2122;s the same supplier of a prominent complex built just off Reginaâ&#x20AC;&#x2122;s Lewvan Drive in the Queen Cityâ&#x20AC;&#x2122;s Harbour Landing subdivision. They also supplied a similar project in Weyburn.

The current Estevan project is named after his daughter, Marisa, and is known as the Marisa Estevan Condos.

The prices for the completed units are very competitive, he said, with a one-bedroom, one-bath suite approximately 600 square feet coming in at $168,000 per door.

While built as condos, they are promoting the units for sale as revenue properties. As such, they qualify under Estevanâ&#x20AC;&#x2122;s rental construction incentive

BUILT TO WORK.

worth up to $10,000 per door between a $5,000 grant from the Saskatchewan Housing Corporation and $5,000 in tax abatements from the City of Estevan.

Under the program, qualifying units must be rented out a minimum of five years. â&#x20AC;&#x153;Thatâ&#x20AC;&#x2122;s a perk for anyone who buys it,â&#x20AC;? Dorling said.

The property also qualifies for the New Saskatchewan Homeowners Warranty Program. That can be a major factor in getting a mortgage, Dorling said.

As for future developments, heâ&#x20AC;&#x2122;s working with another development company on a three-acre project near Estevanâ&#x20AC;&#x2122;s St. Josephâ&#x20AC;&#x2122;s Hospital for 2015.

This could either end up as a 12-plex with three story townhomes or another 50-plus unit building similar to the Marisa Condos. Again, the plan would be to build modular. â&#x20AC;&#x153;You can do it efficiently, and in less time and produce a better quality product when thereâ&#x20AC;&#x2122;s no trades around,â&#x20AC;? he said.

)(1&(' /$1' )25 5(17 /RFDWHG MXVW RII +Z\ : (VWHYDQ

Kramer Ltd. is pleased to be the exclusive Saskatchewan distributor of the Premier OilďŹ eld Equipment Co. Hydrovac.

With seven branches strategically located throughout the province, Kramer is dedicated to providing you the parts, service, and support you need to keep your business at maximum efďŹ ciency.

KRAMER.CA

=HH '=OKJ *=PDAOKJ KN !A=J %KHKEAJ PK HA=NJ IKNA =>KQP PDA =P 1 3K?=PEKJ=H 1NQ?G PK@=U JASON MATHESON NORTHERN SK 306.230.9822

DEAN HOLOIEN SOUTHERN SK 306.537.6372

A24

PIPELINE NEWS June 2014

&$ +IRU

)'6 (14 ;174 %.70-'4

&/81.(56

(9(57+,1* 5('8&(' 2007 PONTIAC G5 SE 84KM

$

9,900

$

97B/W

$

2011 F-350 CC LARIAT 4X4 DIESEL $

39,900

286B/W

NEW

2010 GMC YUKON DENALI AWD

28,900

$

$

59B/W

6,900

108B/W

6,900

$

28,900

$

236B/W

13,900

101KM

$

$

83B/W

NEW

2013 EDGE SEL AWD

$

$

67B/W

7,900

2008 F-150 CC XLT 4X4

9,900

$

$

144B/W

NEW

2013 EDGE SEL AWD

113KM

2009 FOCUS SES

$

115B/W

2009 FOCUS SE

2010 F-250 CC LARIAT 4X4 DIESEL $

2010 FOCUS SES 59KM

NEW

2013 F-150 CC FX4 4X4

$

$

2010 CHEV COBALT LS 131KM

NEW

2013 EDGE SEL AWD

$

103KM $236B/W

2005 MAZDA 6 SPORT

14,900

NEW

2013 F-150 SC XLT 4X4

2013 EDGE SEL AWD

2007 EXPEDITION EDDIE BAUER 4X4

MSRP = $41,119 MSRP = $56,219 MSRP = $43,364 MSRP = $42,914 MSRP = $43,064 CLEAROUTF-150 PRICE PRICE CHEV CAMARO CLEAROUT PRICE CLEAROUT PRICE 2007 EXPLORER SPORT CLEAROUT PRICEXLT 2010 2010 CC FX4 4X4CLEAROUT 2013$ F-150 CC FX4 4X4 2013 ESCAPE 2012 CHEV MALIBU LS $ $ $ $ $ $ $ $ $ $ $ $ LIMITED31,529 4X4 34,343 $259-BWKLY 40,517 36,251 35,855 TRAC 270-BWKLY 238 -BWKLY 35,987 271-BWKLY67KM LT RS 305$-BWKLY 113KM 11KM 273-BWKLY 12KM $ $ $ 19,900 $

$

21,900

179B/W

88KM $ 165 B/W

$

22,900

2010 JOURNEY R.T. AWD $

NAV, LEATHER, MOON, DVD, 92KM,$158 B/W

2005 F-150 CC XLT 4X4 $

11,900

$

182B/W

7,900

19,900

163B/W

R.S. PACKAGE, 25KM $179

119KM $

$

147B/W

2013

17,900

URUS SEL

$

196B/W

12,900

131KM

$

10,900

$

106$ B/W 186

$

21,900

209B/W

38KM

9,900

7,900

59 B/W

$

10,900

$

106B/W

2007 F-150 CREWCAB HARLEY DAVIDSON 4X4

2011 F-350 CC XLT 4X4

$

$

86KM

16,900

162B/W

2009 ESCAPE XLT 4X4 $41KM

16,900 218

139B/W

$

B/W

36,900

2007 EXPEDITION EDDIE BAUER 4X4 $ $

17,900

172B/W

2005 MAZDA 6 SPORT

186 B/W

2009 HYUNDAI TUCSON 128KM

2011 DODGE RAM 3500 CC SLT 4X4 DIESEL, 139KM, $ 264 B/W

2011 EXPEDITION LIMITED MAX 4X4

2012 MALIBU L.S. LIMITED AWD 2011 F-150 CC XLT 4X4

79KM $

29,900

29,900

225B/W

2011 F-150 CC LARIAT 4X4

2005 SUBARU IMPREZA

2008 ESCAPE LIMITED 4X4 $

$

DIESEL 135KM $215B/W

18,900

2012 LINCOLN MKS AWD 42KM $ $

23,900

DIESEL

$

2009 ESCAPE XLT 4X4 LEATHER, 57,000KM

2008 F-350 CC XLT 4X4 DUALLY

SUPERCHARGER, MANY EXTRAS, 69KM

2009 DODGE JOURNEY SXT AWD $

94B/W

16,900

100KM

118KM

$

152B/W

12,900

$

AWD

2008 F-150 SC XLT

29,900 100KM 131B/W 15,900 2008 DAKOTA CC SXT 4X4

215B/W

179B/W

2009 FOCUS SE

BAUER 4X4

$

$

24,900

$

64KM

13,900

211B/W

$

22,900 113KM 8,900 2006 EXPLORER EDDIE

2012 F-150 CC XLT 4X4

2008 ESCAPE LIMITED 4X4

2006 GMC SIERRA 1500 CC 4X4 $

2008 RANGER

2012 EQUINOX L.T.

97KM

2010 CHEV COBALT L.S. XFE $ $

LEATHER, MOON, 15KM $180

2006 GMC ENVOY SLE 4X4 $ 104KM

97KM

2009 F-150 CC XLT 4X4

86KM

66KM 46KM

27,900

2007 EXPEDITION MAX LIMITED 4X4

2010 CAMARO L.T.

18,900

ONLY 9,000KM

$

265B/W

38,900

279B/W

2007 SPORT TRAC LIMITED 4X4

2013 MUSTANG G.T.

$

$

$

LEATHER, GLASS TOP, 12KM $218

2010 DODGE JOURNEY RT AWD 93KM

21,900

$

2007 F-150 CC HARLEY DAVIDSON 4X4

63KM

2005 FREESTAR SEL $

21,900

25KM $179B/W

$

$

147B/W$ 67KM

17,900

108 B/W

$

41KM

$

37,900

271B/W

2008 F-150 SC XLT

2013 FLEX SEL AWD 38KM

$

26,900

$

203B/W

2011 F-350 CREWCAB XLT 4X4 DIESEL, 135KM

$

229 B/W

2013 LINCOLN MKX117KM AWD

31,900

18KM

$

336B/W

44,900

2011 F-150 CREWCAB FX4 4X4 $

24,900

179 B/W

2011 CHEV EQUINOX LT AWD 76KM $165B/W

$

$

22,900

29,900

$

179B/W

$

21,900

194B/W

70KM

$

$

83B/W

$

210B/W

22KM

9,900

$

27,900

$

336B/W

$

26,900

44,900

DIESEL 139KM

27,900

101KM

2007 EXPEDITION LIMITED MAX 4X4 $

23,900

13KM

$

210B/W

$

27,900

16,900

162B/W

2011 CHEV SILVERADO CC LT 4X4 $

21,900

$

158B/W

2013 ESCAPE SE 4X4 54KM $

188B/W

$

209B/W

$

24,900

$

21,900

2011 F-150 CC31,900 FX4 4X4 90KM

$

208B/W

2011 EQUINOX L.T. AWD LEATHER, NEW TIRES, 76KM $179 B/W

25,900

$

$

2013 MUSTANG GT GLASSTOP

DIESEL

2013 ESCAPE SE 4X4 LEATHER, NAV, 55KM $195 B/W

2007 F-150 CC KING RANCH 4X4

9,900

152B/W

228B/W

34,900

250B/W

10,900

$

$

$

$

XLT 4X4

$

2009 FOCUS SES

2006 F-150 SC FX4 4X4

2011 F-150 CC XLT 4X4 41KM

$

2013 FLEX SEL LEATHER, MOON, NAV, 29KM 210 B/W

2010 F-150 CC XLT 4X4 2013 LINCOLN MKX AWD 99KM

$

2010 CHEV COBALT LT

2013 EXPLORER XLT 4X4 HAIL DAMAGE SPECIAL CLEAROUT $ 41KM $225B/W

2011F-150 CC XLT 4X4 70KM

24,900

$

9,900

152B/W

2011 F-350 CC LARIAT 4X4 DIESEL $

127KM

$

307B/W

42,900

2007 BUICK TERRAZA CXL $ 138KM

$

87B/W

8,900

28,900

2012 LINCOLN MKS AWD

2006 EXPLORER XLT 4X4 $

$

ECOBOOST, 38KM $247 B/W

32,900

2011 F-350 CC XLT 4X4 DIESEL $

203B/W

$

26,900

2011 F-150 CC LARIAT 4X4 $

$

24,900

179B/W

2011 F-150 CC FX4 4X4 $

165B/W

$

22,900

PIPELINE NEWS June 2014

A25

Know exactly how much product is there Redvers â&#x20AC;&#x201C; When you produce oil, itâ&#x20AC;&#x2122;s crucially important to know how much youâ&#x20AC;&#x2122;ve produced so you get paid for it, and as a purchaser, how much you are getting, so you get what you paid for.

Metering systems are the lynchpin to such custody transfers, and thatâ&#x20AC;&#x2122;s what Corix Control Solutions specializes in. They were one of the outdoor exhibitors at the Redvers Oil Showcase May 8 and 9.

Stu Affleck is the regional sales manager. Pipeline News last ran into him in Regina at the TransCanada Energy East pipeline open house a month prior to the oil showcase. â&#x20AC;&#x153;Our core business is pipeline flow measurement,â&#x20AC;? Affleck said.

Ken Spang, a meter tech for Western Canada, also spoke with us. â&#x20AC;&#x153;We represent FMC Technologies and Smith Meter is the line,â&#x20AC;? Spang said. â&#x20AC;&#x153;When it goes from the oil producing company to Enbridge, thereâ&#x20AC;&#x2122;s a point of sale, as well as meters for line balance and leak detection,â&#x20AC;? Affleck said. â&#x20AC;&#x153;We do some allocation measurement, too.â&#x20AC;? â&#x20AC;&#x153;We primarily do custody transfer.

We work with Weights and Measures Canada, part of Industry Canada,â&#x20AC;?

Spang added. â&#x20AC;&#x153;Thereâ&#x20AC;&#x2122;s different application. We

offer four different types of technology: positive displacement, turbine, mass and ultrasonic metres.â&#x20AC;?

The old school method was to use tank levels, Affleck said, because that was the technology of the day. But that has long since past. Volumes of the fluid and even the size of the tank alter with changes in temperatures, for instance.

In recent years, Enbridge has invested a lot in leak detection meters throughout North America, they noted, especially since the spill in the Kalamazoo River, Michigan, in 2010.

Rail car loading typically uses coriolis meters, which provide a direct measurement of mass inferring volume through velocity and density, according to Spang. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;ve seen big growth in the business from added production, new pipelines, and oil-by-rail,â&#x20AC;? Affleck said.

The companyâ&#x20AC;&#x2122;s centre of operations is Edmonton, while corporate offices are in Vancouver. Affleck works out of Regina, while Spang said he covers British Columbia, Alberta, Saskatchewan, Manitoba and the Territories.

Corix was formerly Barber Engineering and Controls and Barber Valves and Controls. â&#x20AC;&#x153;Corix purchased us five years ago,â&#x20AC;? Spang said.

! ! !

! ! ! !

! !

! !

(306) 634-4797 (306) 634-7334

www.cedagroup.com

Ĺ˝Ć&#x152;Ĺ?Ç&#x2020;Í&#x203A;Ć? ^Ć&#x161;Ćľ Ĺ&#x2039;Ä&#x17E;Ä?ĹŹÍ&#x2022; ĹŻÄ&#x17E;Ĺ&#x152;Í&#x2022; Ć&#x161;Ä&#x201A;ĹŻĹŹĆ? Ć&#x161;Ĺ˝ DÄ&#x201A;ĆŠ Ç&#x2020;Ć&#x161;Ä&#x17E;Ĺś ŽĨ ĹŹĹľÄ&#x17E; ŽŜĆ&#x161;Ć&#x152;ŽůĆ?Í&#x2DC;

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RIG MOVING Serving the Oil & Gas Industry for more than

50 Years.

We have a modern ďŹ&#x201A;eet of trucks including class 5 pickups, pickers ranging from 30-50 tons, bed trucks up to 8 x 8

Box 700 Carnduff, SK 306-482-3244

A26

PIPELINE NEWS June 2014

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PIPELINE NEWS June 2014

3UHYHQWLQJ VWXIĂ&#x20AC;QJ box leaks

A27

Redvers â&#x20AC;&#x201C; When a stuffing box leaks, it can lead to a real bad day. Thatâ&#x20AC;&#x2122;s where Adoil comes in. They had their wellhead containment system on display in their booth at the Redvers Oil Showcase May 8 and 9. â&#x20AC;&#x153;Stuffing boxes tend to leak,â&#x20AC;? said Simon Lee, general manager. â&#x20AC;&#x153;Anything that might come up, we trap at the source.

The system includes a basin and a clear plastic upper part. The basin will hold eight to 10 litres before it trips a switch tied into the pump-off controller that turns off the jack. Alternatively, it can be connected to a 10 or 50 gallon container for secondary containment. In that case, the switch that triggers a shut-down is in the tank. â&#x20AC;&#x153;This area is huge for us,â&#x20AC;? Lee said, pointing out they work with TS&M, which had the neighbouring booth, as well as a substantial number of other supply firms.

The company has been around since 2002.

Improvements to the design mean that the basin is now made of metal instead of plastic. As for the clear plastic upper portion, thatâ&#x20AC;&#x2122;s primarily meant to catch spray. â&#x20AC;&#x153;A high velocity leak will spray all over,â&#x20AC;? Lee said. â&#x20AC;&#x153;The top is a spray guard, essentially.

Containment systems like this can make a big difference in avoiding a cleanup.

Lee said, â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s not hard to spend $50,000 on a cleanup, and the fine that goes with it.â&#x20AC;?

contact 306.487.7102 dexter@dexeco.com

Self-framing & Panel Oilfield Buildings ^Ĺ?žŽŜ >Ä&#x17E;Ä&#x17E; Ć?Ĺ&#x161;Ĺ˝Ç Ä&#x17E;Ä&#x161; Žč Ä&#x161;Ĺ˝Ĺ?ĹŻÍ&#x203A;Ć? Ç Ä&#x17E;ĹŻĹŻĹ&#x161;Ä&#x17E;Ä&#x201A;Ä&#x161; Ä?ŽŜĆ&#x161;Ä&#x201A;Ĺ?ŜžÄ&#x17E;ĹśĆ&#x161; Ć?Ç&#x2021;Ć?Ć&#x161;Ä&#x17E;Ĺľ Ä&#x201A;Ć&#x161; Ć&#x161;Ĺ&#x161;Ä&#x17E; ZÄ&#x17E;Ä&#x161;Ç&#x20AC;Ä&#x17E;Ć&#x152;Ć? KĹ?ĹŻ ^Ĺ&#x161;Ĺ˝Ç Ä?Ä&#x201A;Ć?Ä&#x17E;Í&#x2DC; Photo by Brian Zinchuk :KHQ \RXU ZHOO VLWH OHDVH RU WDQNDJH UHTXLUHV FRQWDLQPHQW FDOO -. &RQWDLQPHQW ZH ZLOO VDYH \RX WLPH DQG PRQH\

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

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PATENTED

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our customers achieve. So whether itâ&#x20AC;&#x2122;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

LAMPMAN, SK - Highway 361 W - (306) 487-2281

)('(5$/ 2,/ *$6 ,1)5$6758&785( 32:(5 ,1'8675,$/

JAYSON KING 306-736-9169

SE SASKATCHEWAN BRAD ALLAN 306-457-7028

SW SASKATCHEWAN DENNIS LEAHY 306-672-7619

www.jkcontainments.com

856 &20

A28

PIPELINE NEWS June 2014

25 years for Glen Beuttner at Turnbull Excavating

Your Main Rental Space For Lease

Entire top floor.

Consists of 5 large offices varying in size, a kitchen and bathroom.

Will consider leasing as individual.

480 Industrial Road, Carnduff, SK Call 306-485-7021 or 306-339-7533

'ůĞŶ ĞƵƩŶĞƌ͕ ůĞŌ͕ ĂĐĐĞƉƚƐ Ă ƉůĂƋƵĞ͕ ĂŶĚ ĂŶ ds͕ ĨƌŽŵ Ě dƵƌŶďƵůů͕ ŚŝƐ ĞŵƉůŽLJĞƌ ŽĨ Ϯϱ LJĞĂƌƐ͘

Estevan – In a time where most people change careers and jobs almost as often as they change their shirt, it’s becoming increasingly rare to see someone stick around for 25 years. That’s why, when Glen Beuttner of Turnbull Excavating Ltd. hit the quarter-century mark, they threw a party.

While there was a cake, there was also something else: a new set of wheels.

A beaming Ed Turnbull, owner of Turnbull Excavating, presented Beuttner with the keys to a new side-by-side all terrain vehicle.

Beuttner was one of the first employees to join Turnbull when the company launched. ɸ Page A29

PIPELINE NEWS June 2014 programs became an important thing, Glen was our first safety guy,â&#x20AC;? said Turnbull.

It became a bigger job than part time, however, and they now have a full-time safety co-ordinator. Even so, Beuttner is the safety rep on every job heâ&#x20AC;&#x2122;s working on. Turnbull pointed out that nothing of consequence has happened on one of Beuttnerâ&#x20AC;&#x2122;s sites.

Beuttner has also been a mentor over the years. Turnbull said,

â&#x20AC;&#x153;Glen is very good with new employees. Heâ&#x20AC;&#x2122;ll mentor new employees for me.â&#x20AC;? â&#x20AC;&#x153;Heâ&#x20AC;&#x2122;s a go-to guy for my crew. If they donâ&#x20AC;&#x2122;t know who to call, or donâ&#x20AC;&#x2122;t want to call me, they call Glen. Heâ&#x20AC;&#x2122;ll take calls all day long.

Heâ&#x20AC;&#x2122;s very patient and accommodating.â&#x20AC;? â&#x20AC;&#x153;He does extra things you donâ&#x20AC;&#x2122;t get from everyday employees,â&#x20AC;? he said. As an example, heâ&#x20AC;&#x2122;ll just go out and get gag gifts for everyone for the Christ-

A29

mas party. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;ve been involved with some very challenging jobs over the years. He seems to find a way through it when others would cave.â&#x20AC;?

So just who is this Beuttner fellow who doesnâ&#x20AC;&#x2122;t cave and doesnâ&#x20AC;&#x2122;t scream? First of all, he doesnâ&#x20AC;&#x2122;t like to be in the office too much. That becomes pretty obviousafter talking with him. Heâ&#x20AC;&#x2122;d much rather be in the field. ɸ Page A30

&Ć&#x152;Žž ĹŻÄ&#x17E;Ĺ&#x152; Í&#x2014; Ä&#x161; dĆľĆ&#x152;ĹśÄ?ƾůůÍ&#x2022; DÄ&#x201A;Ć&#x152;Ĺ?ŽŜ ,Ä&#x201A;Ć&#x152;Ć&#x2030;Ä&#x17E;Ć&#x152; Ä&#x201A;ĹśÄ&#x161; 'ĹŻÄ&#x17E;Ĺś Ä&#x17E;ƾƊ ĹśÄ&#x17E;Ć&#x152; ůŽŽŏ Ĺ˝Ç&#x20AC;Ä&#x17E;Ć&#x152; Ć&#x161;Ĺ&#x161;Ä&#x17E; ĹśÄ&#x17E;Ç dsÍ&#x2DC; Éş Page A28 â&#x20AC;&#x153;Heâ&#x20AC;&#x2122;s been a very loyal employee here,â&#x20AC;? said Turnbull. â&#x20AC;&#x153;Heâ&#x20AC;&#x2122;s been with me since I first started. â&#x20AC;&#x153;I got to know him through ASL Paving.

I was subcontracting through ASL. I was just starting out, and here was someone with experience.â&#x20AC;?

Beuttner is a supervisor who primarily looks after their dirt work, especially water and sewer, but site work as well.

Turnbull said he is well liked by customers. â&#x20AC;&#x153;Often when they call me back, they ask for Glen,â&#x20AC;? he said, adding Beuttner is very accommodating to them.

He also has a very conscientious nature

about him and a very mild temperament.

Buettner started out driving a loader, and spent much of his early years in the seat of one machine in particular, one the company just recently sold. â&#x20AC;&#x153;He did most of the basement digging in Estevan in the early 1990s,â&#x20AC;? Turnbull said, noting he was so precise; often a laser level was not needed to ensure it was straight.

The machine was a little hard on his body, however, and Beuttner ended up getting both hips replaced. As Turnbull noted during the presentation, he wasnâ&#x20AC;&#x2122;t going to get away that easy, and soon Beuttner found himself in a supervisor role in 2002. â&#x20AC;&#x153;When safety

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Norm - 306-421-0550 306-634-1025 Chris - 306-421-3443

A30

PIPELINE NEWS June 2014

There from the beginning Éş Page A29 Beuttner explained heâ&#x20AC;&#x2122;s originally from Marquis, north of Moose Jaw. After high school he worked in Medicine Hat, hauling fuel and fertilizer with Esso.

After five years in Medicine Hat he came to Estevan with ASL. â&#x20AC;&#x153;With ASL, we were jumping all over the province,â&#x20AC;? he said. One of the local projects was paving the then-new Estevan airport.

Full service centre SGI / MPI accredited for hail and trailer work.

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With ASL he was an equipment operator, running packers and plate tampers on foot as needed. Turnbull was hauling asphalt for them. â&#x20AC;&#x153;We became friends, and he phoned me to come and work for him,â&#x20AC;?

Beuttner said.

He met his soul mate Marion Harper in 1988, and they have been common law spouses for 26 years. She had two boys, one of whom is now an electrician at the mines, and the other runs a shop and steam truck in Carlyle.

Marion worked for CEDA in Estevan for 35 years until she retired in 2012.

When his hips started to give him problems, the doctor suggested a new line of work, and thus Beuttner moved into supervision.

When heâ&#x20AC;&#x2122;s not watching a crew, Beuttner likes to fish and golf as time permits. â&#x20AC;&#x153;I have a walleye tournament next weekend,â&#x20AC;? he said.

In his younger years he played a lot of ball, hockey and curling.

Working in a role where there can be a lot of old-school screamers, Beuttner explained his mild temperament. â&#x20AC;&#x153;I donâ&#x20AC;&#x2122;t like to scream. My philosophy is go out there, enjoy what you are doing, and the job will go well. Have a little patience and take pride in what you are doing. If your customers are happy when youâ&#x20AC;&#x2122;ve done the job, the company will be happy, too. â&#x20AC;&#x153;I try not to get too excited.â&#x20AC;?

As for mentoring, he said, â&#x20AC;&#x153;It goes with part of the job. You have to crawl into the trench and show them what to do. Buy asking questions (of the workers) they understand what theyâ&#x20AC;&#x2122;re doing. If they answer, you know theyâ&#x20AC;&#x2122;re paying attention.â&#x20AC;?

Christa Morhart, controller with Turnbull Excavating, pointed out, â&#x20AC;&#x153;Working at Turnbull Excavating, youâ&#x20AC;&#x2122;re not a number, youâ&#x20AC;&#x2122;re a person. Itâ&#x20AC;&#x2122;s like working like a family, like we all work as part of a family. Weâ&#x20AC;&#x2122;re not just co-workers.

I think everyone would agree working for Ed is a career choice, not just a job.

Over half our staff are over five years.â&#x20AC;?

EXPERIENCE INNOVATION

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Customer service is our top priority and for more than 60 years Import Tool has been a leader in providing liner tool completions, stage cementing tools, casing packers, innerstring cementing service, ďŹ&#x201A;oat equipment and casing accessories to Canadian oil and gas companies who demand the best.

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Ken Mehler 306-421-9576

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Randy Franke 306-421-2244

PIPELINE NEWS June 2014

A31

Warren McEwen shows Žč Ć&#x161;Ĺ&#x161;Ä&#x17E; Ä&#x17E;Ç&#x2021;Ä&#x17E;Ç Ä&#x201A;Ć?Ĺ&#x161; Ć?Ć&#x161;Ä&#x201A;Ć&#x;ŽŜ Ĺ?Ĺś ŽŜÄ&#x17E; ŽĨ Ć&#x161;Ĺ&#x161;Ä&#x17E;Ĺ?Ć&#x152; Ĺ?ĹśĆ&#x161;Ä&#x17E;Ĺ?Ć&#x152;Ä&#x201A;Ć&#x161;Ä&#x17E;Ä&#x161; Ć&#x161;Ć&#x152;Ä&#x201A;Ĺ?ĹŻÄ&#x17E;Ć&#x152;Ć?Í&#x2DC;

)LUHĂ \ 5HQWDOV LQWHJUDWHV OLJKW WRZHU ZLWK ZDVKURRPV Redvers â&#x20AC;&#x201C; Firefly Rentalâ&#x20AC;&#x2122;s booth at the Redvers Oil Showcase was rather unique in its usability. It was a portable loo.

Specifically, it had two washrooms, a shower and eyewash, 25 kilowatt generator and light tower plus four 1,000 watt lights. It was wellused during the two-day show.

Thereâ&#x20AC;&#x2122;s 330 gallons of water onboard for the shower and another 100 for the toilet and sink.

Firefly is owned and operated by Warren and Meagan McEwen. They live in Francis but are in the process of building a new home at Indian Head. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s all equipment rentals â&#x20AC;&#x201C; portable washrooms, light towers, wellhead equipment such as Class III BOPS,â&#x20AC;? Warren said.

The business has been around for two-and-a-half years. Friends had

suggested this type of equipment was in demand.

Meaganâ&#x20AC;&#x2122;s role has increased, looking after administrative tasks like doing the books and invoicing. She teaches piano and sews ladies hats, among other things.

Firefly has three washroom units, 20 light towers and 60 to 70 smaller pieces of equipment. Thatâ&#x20AC;&#x2122;s all run around by Warren, who puts about 100,000 kilometres on his truck each year. â&#x20AC;&#x153;Iâ&#x20AC;&#x2122;m gone every single day. Lots of work is delivering stuff, or servicing it. We do all our own maintenance,â&#x20AC;? he said.

The business is growing. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;ve surpassed our expectations anyways.â&#x20AC;?

As for the show, he said, â&#x20AC;&#x153;We got lots of good contacts from the show. Itâ&#x20AC;&#x2122;s been well worth it, and the weather co-operated.â&#x20AC;?

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A32

PIPELINE NEWS June 2014

Smart Power Systems is growing to six Redvers â&#x20AC;&#x201C; When Pipeline News first featured Smart Power Systems of Estevan three years ago, Trevor Goetz was hoping to put together and operate 20 of their innovative mobile generator trailers.

Now they have 100, and are building more.

Smart Powerâ&#x20AC;&#x2122;s Trevor Goetz, right, shows Kevin Culy with Eecol Electric how the fuel â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re building anĆ&#x161;Ä&#x201A;Ŝŏ Ĺ?Ć? ĹŹÄ&#x17E;Ć&#x2030;Ć&#x161; Ĺ?ĹśĆ?Ĺ?Ä&#x161;Ä&#x17E; Ć&#x161;Ĺ&#x161;Ä&#x17E; Ć&#x161;Ć&#x152;Ä&#x201A;Ĺ?ĹŻÄ&#x17E;Ć&#x152;Í&#x2022; Ć&#x2030;Ć&#x152;Ĺ˝Ç&#x20AC;Ĺ?Ä&#x161;Ĺ?ĹśĹ? Ć&#x2030;Ć&#x152;Ĺ˝Ć&#x161;Ä&#x17E;Ä?Ć&#x;ŽŜ ĨĆ&#x152;Žž ĨƾÄ&#x17E;ĹŻ Ć&#x161;Ĺ&#x161;Ĺ?Ä&#x17E;Ç&#x20AC;Ä&#x17E;Ć? Ä&#x201A;ĹśÄ&#x161; Ć?Ä&#x17E;Ä?ŽŜÄ&#x161;Ä&#x201A;Ć&#x152;Ç&#x2021; other 20 right now,â&#x20AC;? he containment in the event of a possible fuel leak. said in Smartâ&#x20AC;&#x2122;s booth at the Redvers Oil Showcase on May 9.

The design of the generators has a lot to do with preventing two things: theft of fuel and spills. The trailer itself has a sealed floor :HHNGD\V with a high lip for the DP SP doors. This allows it to 6DWXUGD\ act as its own second DP SP ary containment should $IWHU +RXUV &DOO something like a fuel &KDG filter or tank fail. Sec ondly, the tank itself RU is locked up inside the

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The generators are typically used to provide electrical power on a lease until it is tied into the grid. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;ve done some commercial projects like the Grey Cup, powering their camp site, and concerts in Estevan like Hedley and Travis Tritt,â&#x20AC;? Goetz said.

Smart Powerâ&#x20AC;&#x2122;s area of operations includes southeast Saskatchewan and Southwest Manitoba. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;ve grown with employees, with five guys now plus two contractors,â&#x20AC;? he said. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re running a lean machine.â&#x20AC;?

In March they reached their most recent peak, hitting 103 active units out in the field at a time. Even with that many units out there, Goetz said they still get home at night for supper.

Part of the strategy is to keep maintenance low by being proactive with replacement. The intention is to incorporate 20 to 25 new replacement generators

into the existing fleet each year, changing them after four or five years of usage.

Trailers are built in Manitoba and packages are assembled at Redhawk Well Servicing in Oxbow. Tanks and electrical work are sourced locally.

All Smart Power units have one-way satellite communications provided by Acutec Systems of Lampman. These monitoring systems keep an eye on the amperage draw of the well. â&#x20AC;&#x153;A new well generally has a generator, and your new well has the best production, so you want to keep it running,â&#x20AC;? Goetz said. â&#x20AC;&#x153;If the pumpjack stops running for any reason â&#x20AC;&#x201C; belts, pressure switches, or the generator itself â&#x20AC;&#x201C; an alarm is immediately sent to our phones. We relay it to the operator who can then respond with minimal downtime. â&#x20AC;&#x153;A lot of customers donâ&#x20AC;&#x2122;t have their own alarm systems.â&#x20AC;? ɸ Page A33

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

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A33

times what they initially planned Trevor Goetz, right, shows Kevin Culy with Eecol Electric the features of one of their generator trailers. Behind them is a light tower setup. Photo by Brian Zinchuk

2LOĂ&#x20AC; HOG (OHFWULFDO &RQVWUXFWLRQ 6HUYLFH Â&#x2021; ,QVWUXPHQWDWLRQ Â&#x2021; 0RWRU 6DOHV 5HZLQGV 5HSDLUV Éş Page A32 SaskPower has picked up its game tying new wells into the grid, dropping the waiting time from four or five months down to two. â&#x20AC;&#x153;Our customer base has expanded rapidly and weâ&#x20AC;&#x2122;ve got very loyal customers,â&#x20AC;? Goetz said, noting they work for most of the sizeable operators in the area. â&#x20AC;&#x153;We also have a backup generator program for business.

We can sit one there all the time, or have one on short notice for plugin,â&#x20AC;? he said.

As an example, the Estevan Police Service has one tied in for a backup to their station which kicks in automatically if needed.

Light towers In addition to their signature generators, Smart has six light tow-

er units. â&#x20AC;&#x153;We thought it complemented our business very well,â&#x20AC;? Goetz said.

These arenâ&#x20AC;&#x2122;t your typical light towers, however. Two years ago they introduced Smart Powerâ&#x20AC;&#x2122;s light towers, of which they have six units. â&#x20AC;&#x153;We wanted to improve on light towers,â&#x20AC;?

Goetz said. â&#x20AC;&#x153;At a typical location, a customer will use three to four small light towers to light it up.

Each unit is pulled out individually. Each has a small tank needing to be refueled every oneand-a-half to two days.

They have six to eight kilowatts of electrical output. â&#x20AC;&#x153;We designed a large unit with large fuel capacity that will last a week. It has built-in secondary containment

within the trailer. The unit has two towers on it and has a small slave unit pulled behind. It looks like a normal light tower, but is plugged in with 200 feet of cord.

Now we can come to the lease with one trip, give the customer three lights, have a large fuel capacity and 40 kilowatts of power,â&#x20AC;? he explained.

The tag-along slave unit is a retrofitted light tower without an independent gen set.

With only one motor running, thereâ&#x20AC;&#x2122;s less maintenance and less fuel used. â&#x20AC;&#x153;We have enough power for the whole location,â&#x20AC;? Goetz said.

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A34

PIPELINE NEWS June 2014

Tremcar West Inc. offers our customers a certified repair shop with qualified workers specializing in: , $ $ " $ , %" & ! % , '&! $ % , %" & ! % , $!' !!& *%& % , &! $&% , % ( , & ' " $ $ & !

Suzanna Nostadt - Vice President (306) 861-2315 Bruce Palmer - Service Manager (306) 861-2841 Bill Hunter - Parts Manager (306) 842-6100

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202 Melville Street, Saskatoon, SK. (306) 931-9777 41 Liberty Road, Sherwood Park, AB (780) 417-0193 Darren Williams - VP Of Sales Tremcar Inc. Sales (306) 361-5559 Northern Saskatchewan - Chris Campbell (639) 471-8265 Southern Saskatchewan - Suzanna Nostadt (306) 861-2315

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PIPELINE NEWS June 2014

A35

Saskatchewan headed for another year of record oil production termination and hard work are very nice, but not so nice as having an oil well in your back yard.â&#x20AC;&#x2122; â&#x20AC;&#x153;This is absolutely true, when you look around Redvers, or anywhere in southeast Saskatchewan, or in northwest Saskatchewan, where I call home. You see abundant prosperity, abundant opportunity for young people and entrepreneurs,â&#x20AC;? said McMillan. â&#x20AC;&#x153;I would argue without courage, determination and hard work, we would produce very little oil in our province, or anywhere in the world today.

â&#x20AC;&#x153;Most people donâ&#x20AC;&#x2122;t understand how hard it is to produce oil, that it is a technological challenge.

The amount of work, technique and technology that goes into it is phenomenal. Itâ&#x20AC;&#x2122;s almost science fiction, talking about directional drilling, drilling equipment, the seismic programs that define a resource. Waterfloods, polyermer floods, chemical floods. These are phenomenal pieces of science that we use every day and take for granted in producing oil.â&#x20AC;? ɸ Page A36

Tim McMillan

Â&#x201E; By Brian Zinchuk Redvers â&#x20AC;&#x201C; The Redvers & District Oil Showcase was able to attract Minister responsible for Energy and Resources Tim McMillan as guest speaker for the well-attended banquet.

Southeast Saskatchewan accounts for 41 per cent of Saskatchewan oil production.

On average 207,000 barrels of oil are produced from southeast Saskatchewan, and our consumption for the entire province is less than 100,000 bpd. â&#x20AC;&#x153;This one corner of the province, each and every day, produces more than double the oil we need to fuel our entire province,â&#x20AC;? he said.

In 2012, the province set an all-time record for oil production, and then beat that record the following year. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re on pace again this year. It looks like Saskatchewan will break another all-time record for Saskatchewan oil production,â&#x20AC;? said McMillan.

In 2013, Saskatchewan drilled 2,443 horizontal wells, a lot of those in southeast Saskatchewan.

To put local development in context, McMIllan said within 13 kilometre radius of Redvers, there were 88 new wells drilling in the last year, and 1,300 wells drilled to date. â&#x20AC;&#x153;Thereâ&#x20AC;&#x2122;s an old adage that says, â&#x20AC;&#x2DC;Courage, de-

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A36

PIPELINE NEWS June 2014

No longer have - not Éş Page A35 He noted in the Lloydminster area, a lot of technology has been developed to deal with sand, yet in the southeast, the opposite is true, as sand is used as a proppant in fracking.

Innovation happens not only in the labs, but in garages with drill presses, he noted.

Regarding the sen-

sitive issue of pipelines, he said, â&#x20AC;&#x153;We would not approve a pipeline in Saskatchewan unless it met our high standards.â&#x20AC;?

Pipelines can be built safely, he noted.

Projects on the horizon include the Energy East, Enbridge mainline expansion and prospects to the West Coast. â&#x20AC;&#x153;And thereâ&#x20AC;&#x2122;s always Keystone XL. The pipelineâ&#x20AC;&#x2122;s been on the Minister responsible for Energy and Resources Tim McMillan addressed the Redvers & District Oil Showcase on May 8. He spoke about how some people donâ&#x20AC;&#x2122;t like seeing the big trucks young people are buying today, but he sees it as a sign of prosperity.

Photo by Brian Zinchuk

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presidentâ&#x20AC;&#x2122;s desk far too long,â&#x20AC;? he added.

McMillan noted that oil routinely crosses the border from North Dakota into Canada and then back south, crossing the border multiple times. â&#x20AC;&#x153;This industry is part of fundamentally been changing our province. It has for several years. For a long time, we were a have-not province. There are few industries that I think

Leased Ops & Company Drivers always welcome to apply.

have changed our province financially, and as culturally, as the energy industry,â&#x20AC;? he said. â&#x20AC;&#x153;There is no industry in Canada that has the entrepreneurial spirit that the energy industry that the oil industry, does. We have seen, because of the growth and prosperity in this industry â&#x20AC;&#x201C;we have (gone) from 2007, from less than average weekly earnings, to number two or number three in the country.

Weâ&#x20AC;&#x2122;ve had the fastest growing wages in that

time period. â&#x20AC;&#x153;For too long, we didnâ&#x20AC;&#x2122;t grow. For 50, 60 years, we had the same population, just under a million people.

Today weâ&#x20AC;&#x2122;re growing at a pace faster than we have in over 70 years.

Weâ&#x20AC;&#x2122;ve have the lowest unemployment rate in the country for over 15 months,â&#x20AC;? he said. â&#x20AC;&#x153;People want to be here, they want to invest here, and be a part of the Saskatchewan story, and a large part of that story is producing oil,â&#x20AC;?

McMillan said.

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PIPELINE NEWS June 2014

A37

McMillan discusses Europe and rail Prior to his address to the ergy East taking oil east, potentially.

Redvers & District Oil Showcase If Europe were wanting to build a banquet, Minister responsible for strong relationship with Canadian oil, Energy and Resources Tim McMilthat would be a very important piece lan spoke with of infrastructure.

Pipeline News â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re still about energy very focused on issues in Europe getting oil to and a crude-bythe West Coast, rail derailment in feeding growing Estevan. markets in India With energy and China. And at the forefront of with Keystone issues in Eastern XL, we got some Europe, McMilbad news a couple lan said, â&#x20AC;&#x153;If anyweeks ago. Again, thing, it re-affirms a long time energy Saskatchewan and partner and masCanada are great Tim McMillan, Minister responsible sive capacity to places to invest. refine our oil, so for Energy and Resources.

We have a level of thereâ&#x20AC;&#x2122;s a lot of work political security going that direction that isnâ&#x20AC;&#x2122;t found in other places in the as well.â&#x20AC;? world. Weâ&#x20AC;&#x2122;re at a stage of maturity The provinceâ&#x20AC;&#x2122;s response on that in the development of our industry front can be summed up in one word, that thereâ&#x20AC;&#x2122;s service companies, thereâ&#x20AC;&#x2122;s McMillan said. â&#x20AC;&#x153;Disappointed.â&#x20AC;? infrastructure in place. The Fraser â&#x20AC;&#x153;We will continue to make the Institute ranks us as the best place in case, but I think it comes down Canada to drill an oil well. That ranks to politics. If itâ&#x20AC;&#x2122;s a safety issue, it us very well compared to Eastern shouldnâ&#x20AC;&#x2122;t go forward. But itâ&#x20AC;&#x2122;s not a Europe or many other places. safety issue. We have very high stanAsked if Ukraine and Rusdards of any pipeline in our province, siaâ&#x20AC;&#x2122;s issues will have an impact on any pipeline that goes through our the Canadian oil industry, he said, province, and I would expect the â&#x20AC;&#x153;Iâ&#x20AC;&#x2122;m reading reports that Europe is Americans would have a similar high doing some soul searching on how standard.â&#x20AC;? much reliance theyâ&#x20AC;&#x2122;re putting on If it meets that standard, then their relationship with Russia. That it should be allowed, according to relationship has driven a lot of their McMillan. policy and beliefs about Canadian oil, Earlier that day, there was a decalling it dirty Canadian oil. With a railment of four crude-oil-filled rail partner theyâ&#x20AC;&#x2122;ve used for a long time tanker cars with the Estevan rail yard. that maybe not as stable as they like, Asked of his thought of that, McMilmaybe our oil isnâ&#x20AC;&#x2122;t as dirty as it once lan replied, â&#x20AC;&#x153;I understand this hapwas.â&#x20AC;? pened in a rail yard at a slow speed Regarding pipelines to export, he and there was no loss of fluid. said, â&#x20AC;&#x153;I think thatâ&#x20AC;&#x2122;s a huge challenge. â&#x20AC;&#x153;When we see rail in SaskatchThere are some positives with Enewan, it travels on our road network

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and on occasion there are challenges there as well. We have high standards and high expectations, and I understand the safety measures there

worked. We will certainly be following it as it goes forward to see if thereâ&#x20AC;&#x2122;s anything we can learn from it, but the system worked.â&#x20AC;?

A38

PIPELINE NEWS June 2014

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Redvers â&#x20AC;&#x201C; Global Energy Services (2011) has some close ties to Redvers, since thatâ&#x20AC;&#x2122;s where founder Derek Begin orginates from.

The company attracted some attention with its cellular booster tower deployed in the centre of the show area.

Mounted on a trailer, the tower was only deployed to half its 110 foot height at the show.

The company was started in 1994. It was publicly traded until 2011, when it was brought privately. It is owned by Derek Begin and Rex Brigan. â&#x20AC;&#x153;Any remote site, we make sure you have communications to that site,â&#x20AC;? said Carey Begin, manager of sales and operations for Saskatchewan and Manitoba.

Carey said, â&#x20AC;&#x153;I started in the shop when I was 14.â&#x20AC;? He worked his way up through field tech to a management position.

Krista Naviaux is the sales rep for Saskatchewan and Manitoba.

Cellular is the first step. If close enough to a tower, they put up a booster. On a drilling rig, this means putting an antenna on the crown of the rig to reach out to the existing cellular network, and a â&#x20AC;&#x153;fill antennaâ&#x20AC;? under the doghouse to provide local service, covering the lease.

Itâ&#x20AC;&#x2122;s important to do this correctly; however, as boosters need to be tuned properly or theyâ&#x20AC;&#x2122;ll take down the whole cellular tower you are connecting to, according to Carey. Itâ&#x20AC;&#x2122;s important to have the equipment

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and to make it work properly.

The aforementioned tower is ideal for completion sites or fracking operations when other options are not available. â&#x20AC;&#x153;We brought it down on Wednesday, and it looks like it will be going out (to work) when things start up,â&#x20AC;?

Carey said.

The antenna takes about 45 minutes to assemble or disassemble on site.

If cellular service is unobtainable, then itâ&#x20AC;&#x2122;s time to look up into space. â&#x20AC;&#x153;We can pull in satellites with voice lines and data,â&#x20AC;? he said. This allows a site to keep in touch with headquarters and the outside world.

Satellites work everywhere, he noted.

In addition to boosters, Global also offers two types of onsite communications. One is a ruggedized cordless phone system called an EnGenius. Global has souped them up to improve their range over the off-the-shelf version

of the phone.

These cordless phones are not considered â&#x20AC;&#x153;intrinsically safe,â&#x20AC;? however. For those applications, they offer what is commonly called a rig phone, a tough beast of corded phone often seen in doghouses.

Other communication solutions include Turbo Hubs, a cellular system that puts a signal into a hub and has wired Ethernet and a phone hookup. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s basically a cellphone with a wireless router in it,â&#x20AC;? Carey said. The unit has external antennas to transmit outside metal shacks.

Carey noted that Naviaux came on board four months ago. Sheâ&#x20AC;&#x2122;s from Redvers. Having a local person has been beneficial and been leading to continual growth, he said.

Naviaux said of the oil showcase, â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s been great. People have been in and out, including consultants both known and new. I think itâ&#x20AC;&#x2122;s been great for that.â&#x20AC;?

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PIPELINE NEWS June 2014

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Redhead Equipment to hold grand opening of new Regina headquarters Â&#x201E; By Brian Zinchuk Regina â&#x20AC;&#x201C; As part of a continuing series of branch expansions, Redhead Equipment has established a new headquarters just east of Regina, on the south side of Highway 1 between Regina and White City.

They started operations at the new facility last September, but the grand opening will take place on June 4.

Pipeline News spoke to president and CEO Gary L. Redhead in his Regina office on April 24. Ron Karasin, chief operating officer and chief financial officer, joined in. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re extremely proud of this building and looking forward to our June 4th grand opening,â&#x20AC;? Redhead said.

Coinciding with the grand opening, a $1 million donation has been made to STARS air ambulance over the past year. The donation will be formally announced at the grand opening, although staff were told about it at last yearâ&#x20AC;&#x2122;s Christmas party.

Thatâ&#x20AC;&#x2122;s a major donation from a company that is Saskatchewan through-and-through.

They started here, theyâ&#x20AC;&#x2122;ve grown here, and they plan to stay here and continue that growth. â&#x20AC;&#x153;Basically weâ&#x20AC;&#x2122;re a 100 per cent Saskatchewan-owned company,â&#x20AC;?

Redhead said.

Redhead Equipment has three primary

Gary Redhead credits a buoyant Saskatchewan economy for his companyâ&#x20AC;&#x2122;s growth. The company is giving back, too, Ç Ĺ?Ć&#x161;Ĺ&#x161; Ä&#x201A; Ψϭ ĹľĹ?ĹŻĹŻĹ?ŽŜ Ä&#x161;ŽŜÄ&#x201A;Ć&#x; ŽŜ Ć&#x161;Ĺ˝ ^d Z^ Ä&#x201A;Ĺ?Ć&#x152; Ä&#x201A;ĹľÄ?ƾůÄ&#x201A;ĹśÄ?Ä&#x17E;Í&#x2DC; Photo by Brian Zinchuk

divisions. â&#x20AC;&#x153;Agriculture is our biggest division, followed by construction equipment, followed by our truck division. A quarter of our sales are done in product support services, parts and services,â&#x20AC;? he said.

New headquarters Redhead Equipment has five locations throughout Saskatchewan, including Saskatoon, Lloydminster, Estevan, Swift Current and Regina, the headquarters and the place where the company was founded. All locations saw expansions in recent years, including the construction of the new

headquarters completed in 2013. It replaced two locations a short distance apart and just off Reginaâ&#x20AC;&#x2122;s Ring Road in the cityâ&#x20AC;&#x2122;s northeast corner. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;ve got more traffic going by here than our old location.

The exposure here is fantastic. Itâ&#x20AC;&#x2122;s lit up well at night. With the new design with the Department of Highways, this will be maintained to be the Number 1 Highway in and out of Regina,â&#x20AC;?

Redhead said.

Indeed, the province recently released the planned route for the Regina bypass, and it

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splits off from current Highway 1, with a new interchange just west of the new Redhead Equipment location. â&#x20AC;&#x153;Right now weâ&#x20AC;&#x2122;re sitting on 133 acres,â&#x20AC;? he said. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;ve developed approximately 45.â&#x20AC;?

That leaves lots of room for growth.

The new building has 117,000 square feet, and theyâ&#x20AC;&#x2122;ve already made use of all of it.

There are two shop wings, one for Case and Volvo construction equipment, and one for Mack trucks and trailers. The centre of the building is occupied by two parts centres, one

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for Mack and trailer parts, and the other for Case and Volvo parts.

While Redhead is also a Case IH agricultural dealer in other areas of the province, another dealership other than Redhead has the Regina territory, and thus ag equipment is not supported from the new Regina facility.

The centre part of the building also includes office areas.

One of the difficulties of having two locations, as they did before, was simply that: having two locations. Asked how consolidation has improved things,

Karasin said it is now a one-stop shop. â&#x20AC;&#x153;A lot of our construction customers have trucks, and vice-versa. It is an awful lot easier for us to have one facility. â&#x20AC;&#x153;Generally speaking, we were landlocked. As our business grows, our physical footprint needed to grow. This land, this location, certainly accommodated that,â&#x20AC;? he said, emphasizing the customer benefits.

Quite often couriers would go to the wrong location, Karasin noted.

Now it is much easier for the customer to do business with them.

They also have a stateof-theâ&#x20AC;&#x201C;art facility that allows them to service customers better and deal with them in one place. It also lets the senior management team be closer to both.

Breaking down the numbers, agriculture makes up for approximately 53 per cent of Redhead Equipmentâ&#x20AC;&#x2122;s sales, followed by construction equipment at 33 per cent and trucks and trailers at 14 per cent.

Organic growth Asked what has been fueling the companyâ&#x20AC;&#x2122;s growth, Redhead replied, â&#x20AC;&#x153;Just the organic growth within the province and the diversification of our product lines. â&#x20AC;&#x153;The manufacturers themselves have expanded their product lines, therefore itâ&#x20AC;&#x2122;s expanded our sales and weâ&#x20AC;&#x2122;ve invested heavily in product support.â&#x20AC;? ɸ Page B2

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B2

PIPELINE NEWS June 2014

Organic growth within Saskatchewan

Redhead Equipmentâ&#x20AC;&#x2122;s new building has 117,000 square feet, and theyâ&#x20AC;&#x2122;re already making use of all of it.

Éş Page B1 As for how important the oilpatch is to the business, both Redhead and Karasin replied, â&#x20AC;&#x153;Extremely.â&#x20AC;?

Itâ&#x20AC;&#x2122;s hard to quote a percentage, Karasin noted. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s huge. Itâ&#x20AC;&#x2122;s a very important part of our business and the economy overall.â&#x20AC;?

Almost a half of their truck sales, for instance, find usage in the oilpatch. As for con-

struction equipment, the number would be around 30 per cent. Loaders and excavators are the biggest sellers.

Karasin added, â&#x20AC;&#x153;Our growth has been largely organic, for sure, with our existing branches and manufacturers, for the most part. As the economy has grown, it has provided opportunities for dealers like ourselves to provide equipment needed to grow

infrastructure, housing, mining, those sorts of things. It hasnâ&#x20AC;&#x2122;t been through acquisitions.â&#x20AC;?

Some short line additions have taken place, including EZ-2-Load trailers by BWS. All told, approximately 430 people work for Redhead Equipment, of which 129 people work out of Regina. That total number excludes those who work for Redheadâ&#x20AC;&#x2122;s own farm-

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ing operations, Redland Farms. â&#x20AC;&#x153;We farm about 12,000 acres at Fort Quâ&#x20AC;&#x2122;Appelle,â&#x20AC;? Redhead said. He started buying farmland in 2001. â&#x20AC;&#x153;They donâ&#x20AC;&#x2122;t let me go near the tractors, just write the cheques,â&#x20AC;? he joked.

Asked if he takes Case IH Quadtracs for a spin, he replied, â&#x20AC;&#x153;We have three of them, actually.â&#x20AC;?

With regards to where they see the company in 10 years, Redhead said, â&#x20AC;&#x153;We wonâ&#x20AC;&#x2122;t be expanding outside the province. Weâ&#x20AC;&#x2122;ll be expanding within the province, based on organic growth. â&#x20AC;&#x153;If you go into other areas, try to get into the market in Alberta, the cost of the land and the cost of moving in there is horrendous. When you look at this piece of land here, you could pay a million an acre in Calgary.â&#x20AC;?

They paid a fraction of that in Saskatchewan. â&#x20AC;&#x153;All of our offices are located on a major highway,â&#x20AC;? he noted.

They do service some Alberta territory with the Lloydminster location. But other than that, product territories are well defined, and Redhead will be sticking to its Saskatchewan base.

Karasin noted â&#x20AC;&#x153;Three of the four main lines, we have the entire province of Saskatch-

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ewan, plus some territory directly west of Lloydminster.â&#x20AC;?

Redhead said, â&#x20AC;&#x153;For the next 10 years, we think Saskatchewan is going to be buoyant.â&#x20AC;?

Karasin said, â&#x20AC;&#x153;The continued long-term fundamentals of the economy look strong when you look out five, ten years. We continue to have what the world needs. It will continue to demand more food and more potash to grow that.â&#x20AC;? â&#x20AC;&#x153;Oil and gas,â&#x20AC;? Redhead added, pointing out another growth area.

When told his outlook for the province sounds very similar, almost word-for-word, to what the provincial government has been saying, Karasin replied, â&#x20AC;&#x153;It doesnâ&#x20AC;&#x2122;t matter who says it. Itâ&#x20AC;&#x2122;s real. Weâ&#x20AC;&#x2122;ve grown organically. Rising tides float all boats.

Weâ&#x20AC;&#x2122;ve been fortunate to participate in Saskatchewanâ&#x20AC;&#x2122;s economy during its best time in history.

We see, long term, that continuing. Even without expansion into new provinces, this company will fair extremely well, into the foreseeable future.â&#x20AC;?

Asked if there was an inflection point, a year were they saw a noticeable change, Karasin replied, â&#x20AC;&#x153;Our growth has been 15 per cent, year-over-year, since 2001, and itâ&#x20AC;&#x2122;s been pretty consistent. We have the flat year of 2009, like most people did after the 2008 fiasco, but for most part weâ&#x20AC;&#x2122;ve had consistent double-digit growth, compounding. ɸ Page B3

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PIPELINE NEWS June 2014 Éş Page B2 â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re about fourand-a-half times the sales numbers we had in 2002.â&#x20AC;?

That has resulted in employing more people, too, growing from about 240 people back then.

Recruiting a key factor â&#x20AC;&#x153;We have a very aggressive recruiting program for new employees,â&#x20AC;? Redhead said. â&#x20AC;&#x153;We travel all over the world, basically.â&#x20AC;?

People recruited from overseas generally work in parts and service. Some of the countries they have brought people in from include Ukraine, Mauritius, the United Kingdom, Ireland, Philippines,

Jamaica, Tunisia, and the United States.

Indeed, Redhead Equipment is one of the very few companies over recent years that has told Pipeline News they have looked to the U. S. for recruits. Karasin explained, â&#x20AC;&#x153;I would suggest nobody has had great success in recruiting from the U. S. We often look there, but if you look at the previous countries, people living there would definitely see moving to Canada as a way to improve their opportunities. Coming out of the U.S., they donâ&#x20AC;&#x2122;t see it the same way.

Climate is one issue, but there are many others as well.

â&#x20AC;&#x153;We all looked there, especially during the hard times in the U. S. You would think you would have been able to attract a lot of people.

Theyâ&#x20AC;&#x2122;ve got the right skills, the right language, the right everything, but thereâ&#x20AC;&#x2122;s still a barrier to getting them to move into Canada. More people want to move south than move north.

However, the few that we have been able to attract are working out great.â&#x20AC;? â&#x20AC;&#x153;We do an awful lot of work to acclimatize these people. Itâ&#x20AC;&#x2122;s high risk. Thereâ&#x20AC;&#x2122;s language barriers, technology barriers, cultural issues, etc. that weâ&#x20AC;&#x2122;re forced to

Redhead Equipment history As quoted from Redhead Equipmentâ&#x20AC;&#x2122;s website: â&#x20AC;&#x153;Redhead Equipment got its start in 1948 under the name of W.F. Fuller Machinery Limited. Gordon Redhead worked there until 1968 at which time he purchased the business and changed the name to Redhead Equipment. Gary Redhead, Gordonâ&#x20AC;&#x2122;s son, joined the family business in 1969 and worked with his father until 1980 when he bought his fatherâ&#x20AC;&#x2122;s interest in Redhead Equipment and became the President and CEO. Gary Redhead continues to run the business today. â&#x20AC;&#x153;Redhead Equipment was originally a Champion Motor Grader Dealer, but expanded in 1971 to include agricultural equipment. In 1990, they diversified operations further by adding Mack Trucks to the selection of equipment they offered. In 1991 Redhead

Equipment acquired the Case Equipment dealership which included both construction and agricultural equipment.

In 1998, Champion was purchased by Volvo Construction Equipment and as a result, in 2001, Redhead Equipment added Volvo Construction Equipment to the list of product lines it carried. â&#x20AC;&#x153;In 1998, Redhead Equipment purchased Southwest Pro-Ag, an agricultural implement dealership in Swift Current, further expanding the company into SouthWestern Saskatchewan.

To better serve the growing business, also in 1998, Redhead Equipment constructed facilities in Swift current, Lloydminster and Regina; earning themselves a cover story in Border Business Magazine. â&#x20AC;&#x153;In 2004, Lakeland Implements was purchased in Lloydminster, adding agricultural equipment to the

truck and construction operation that already existed in that city. 2007 brought the construction of a new facility in Saskatoon, amalgamating the two former branches into one state-of-theart facility, providing a diversified clientele with one-stop-shopping.

2007 also brought the acquisition of Boundary Motors in Estevan, further expanding the business into the SouthEast corner of the province.â&#x20AC;?

deal with. We want to find some local, a local kid from Estevan, from the farm, as a mechanic.

Thatâ&#x20AC;&#x2122;s number one.â&#x20AC;? â&#x20AC;&#x153;The provincial government isnâ&#x20AC;&#x2122;t training enough,â&#x20AC;? Redhead said. â&#x20AC;&#x153;Thereâ&#x20AC;&#x2122;s not enough seats in the trades, to fill the needs that we have.

Thatâ&#x20AC;&#x2122;s a North American problem, and beyond,â&#x20AC;?

Karasin continued.

There are few farm boys left, he noted, adding, â&#x20AC;&#x153;Theyâ&#x20AC;&#x2122;re all employed gainfully, Iâ&#x20AC;&#x2122;ll tell you that.â&#x20AC;? â&#x20AC;&#x153;There are farm kids out there still. Weâ&#x20AC;&#x2122;re still hiring them,â&#x20AC;? Redhead said. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re getting people from the oilpatch, too, coming back from Fort Mac.â&#x20AC;?

Karasin said, â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s worth noting, our turnover of employees isnâ&#x20AC;&#x2122;t as bad as many, and we

B3

Volvo and Case are Redhead Equipmentâ&#x20AC;&#x2122;s two primary conĆ?Ć&#x161;Ć&#x152;ĆľÄ?Ć&#x; ŽŜ Ä&#x17E;Ć&#x2039;ĆľĹ?Ć&#x2030;ĹľÄ&#x17E;ĹśĆ&#x161; ĹŻĹ?ĹśÄ&#x17E;Ć?Í&#x2DC; ,Ä&#x17E;Ć&#x152;Ä&#x17E; Ĺ?Ć? Ä&#x201A; ĹŻĹ?ĹśÄ&#x17E; ŽĨ sŽůÇ&#x20AC;Ĺ˝ Ĺ?Ć&#x152;Ä&#x201A;Ä&#x161;Ä&#x17E;Ć&#x152;Ć?Í&#x2DC;

have a lot of long-term employees in the organization, which reflects it being a great place to work â&#x20AC;&#x201C; a work hard, play hard, concept, if you will.

We attract more than our fair share coming out of the schools, for example.â&#x20AC;?

They would like to see more training seats for these trades, and

the company takes on apprentices all the time.

They go to dinners, provide scholarships, participate in career days and do anything and everything to get in contact with these young people early. â&#x20AC;&#x153;Thatâ&#x20AC;&#x2122;s how you get a bigger piece of the pie.

We need the pie to grow as well,â&#x20AC;? Karasin said.

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B4

PIPELINE NEWS June 2014

STARS rolls out RV training unit Â&#x201E; By Geoff Lee Regina â&#x20AC;&#x201C; Emergency responders in Outlook and Kindersley were the first to receive simulated medical training from STARSâ&#x20AC;&#x2122; new Mobile Education Unit.

STARS purchased the MEU with donations to travel all over the province providing free emergency care training to health care providers in rural communities.

STARS currently operates two other MEUs in Alberta performing similar medical education functions. â&#x20AC;&#x153;We can take the MEU out to rural communities and coordinate with lo^d Z^ Žĸ Ä?Ĺ?Ä&#x201A;ĹŻĹŻÇ&#x2021; Ć&#x152;ŽůůÄ&#x17E;Ä&#x161; ŽƾĆ&#x161; Ĺ?Ć&#x161;Ć? ĹśÄ&#x17E;Ç DĹ˝Ä?Ĺ?ĹŻÄ&#x17E; Ä&#x161;ĆľÄ?Ä&#x201A;Ć&#x; ŽŜ hĹśĹ?Ć&#x161; Ĺ?Ĺś ZÄ&#x17E;Ĺ?Ĺ?ĹśÄ&#x201A; ŽŜ DÄ&#x201A;Ç&#x2021; Ď­Í&#x2DC; dĹ&#x161;Ä&#x17E; D h cal health educators and emergency responders along with doctors and nurses Ç Ĺ?ĹŻĹŻ Ć&#x161;Ć&#x152;Ä&#x201A;Ç&#x20AC;Ä&#x17E;ĹŻ Ć&#x161;Ĺ&#x161;Ä&#x17E; Ć&#x2030;Ć&#x152;Ĺ˝Ç&#x20AC;Ĺ?ĹśÄ?Ä&#x17E; Ć&#x161;Ĺ˝ Ć&#x2030;Ć&#x152;Ĺ˝Ç&#x20AC;Ĺ?Ä&#x161;Ä&#x17E; Ä&#x17E;ĹľÄ&#x17E;Ć&#x152;Ĺ?Ä&#x17E;ĹśÄ?Ç&#x2021; Ć&#x152;Ä&#x17E;Ć?Ć&#x2030;ŽŜÄ&#x161;Ä&#x17E;Ć&#x152;Ć? Ĺ?Ĺś Ć&#x152;ĆľĆ&#x152;Ä&#x201A;ĹŻ Ä?ŽžžƾŜĹ?Ć&#x; Ä&#x17E;Ć? Ç Ĺ?Ć&#x161;Ĺ&#x161; to provide free training on the simulator,â&#x20AC;? said STARSâ&#x20AC;&#x2122; spokesperson Bonnie Ć?Ĺ?žƾůÄ&#x201A;Ć&#x161;Ä&#x17E;Ä&#x161; Ä&#x17E;ĹľÄ&#x17E;Ć&#x152;Ĺ?Ä&#x17E;ĹśÄ?Ç&#x2021; ĹľÄ&#x17E;Ä&#x161;Ĺ?Ä?Ä&#x201A;ĹŻ Ć&#x161;Ć&#x152;Ä&#x201A;Ĺ?ĹśĹ?ĹśĹ? ĨĆ&#x152;Ä&#x17E;Ä&#x17E; ŽĨ Ä?Ĺ&#x161;Ä&#x201A;Ć&#x152;Ĺ?Ä&#x17E;Í&#x2DC; WĹ&#x161;Ĺ˝Ć&#x161;Ĺ˝ Ć?ĆľÄ?ĹľĹ?ĆŠ Ä&#x17E;Ä&#x161; Monteith.

The MEU is a specially equipped RV housing a human patient simulator that looks like a computerized mannequin but can react like a person with critical injuries.

The mannequin can be controlled to replicate medical and traumatic scenarios that emergency responders can react to test and practice their skills. www.banditoilďŹ eld.ca â&#x20AC;&#x153;His name is Stan. We donâ&#x20AC;&#x2122;t call him Stan the man,â&#x20AC;? said Monteith in

6 6 6

response to the suggestion.

6 6

Stan, however, is humanoid and can be controlled to breathe, blink, bleed, speak and accurately mirror human responses to medical care including CPR intravenous medication and intubation.

Stan has a heartbeat, a pulse and reactive pupils to simulate the most real life training situations.

The simulator can be used in a variety of environments for education purposes, including hospital emergency rooms, classrooms and mock accident 6 ,+ '+"& /2"(0 6 ,+ ,1 &,1 / ')$/ scenes.

6 $4 0 $#0 6 ,+ '%&!,50 STARS held an official launch of the MEU from its base Regina on May 1 6 &$$)$/0 6 ,+ ,3!,50 to celebrate their second year of operations in Saskatchewan.

6 &$$)$/0 6 ,+ /,*!,+$ ,3!,50 Service began with the startup of the Regina base in April 2012 followed 6 '/ '#$ $$-0 6 '/ '#$ .2'-*$+1

by Saskatoon in October of that year. ɸ Page B5

306-482-8886 Carnduff, SK

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B5

ZĹ?Ĺ?Ĺ&#x161;Ć&#x161;Í&#x2014; DÄ&#x201A;ĆŠ Ĺ&#x161;Ä&#x17E;Ç ,Ĺ˝Ĺ?Ä&#x201A;ĹśÍ&#x2022; žŽÄ?Ĺ?ĹŻÄ&#x17E; Ä&#x17E;Ä&#x161;ĆľÄ?Ä&#x201A;Ć&#x; ŽŜ ĹŻÄ&#x17E;Ä&#x201A;Ä&#x161;Í&#x2022; ĨŽĆ&#x152; ^d Z^ Ĺ˝Ć&#x2030;Ä&#x17E;Ć&#x152;Ä&#x201A;Ć&#x161;Ä&#x17E;Ć? Ć?Ĺ?žƾůÄ&#x201A;Ć&#x161;Ä&#x17E;Ä&#x161; ĹľÄ&#x17E;Ä&#x161;Ĺ?Ä?Ä&#x201A;ĹŻ Ć&#x161;Ć&#x152;Ä&#x201A;Ĺ?ĹśĹ?ĹśĹ? ĨĆ&#x152;Žž Ä&#x201A; Ä?ŽžĆ&#x2030;ĆľĆ&#x161;Ä&#x17E;Ć&#x152; Ĺ?ĹśĆ?Ĺ?Ä&#x161;Ä&#x17E; ^d Z^Í&#x203A; ĹśÄ&#x17E;Ç DĹ˝Ä?Ĺ?ĹŻÄ&#x17E; Ä&#x161;ĆľÄ?Ä&#x201A;Ć&#x; ŽŜ hĹśĹ?Ć&#x161; ĹŻÄ&#x201A;ƾŜÄ?Ĺ&#x161;Ä&#x17E;Ä&#x161; ĨŽĆ&#x152; Ć?Ä&#x17E;Ć&#x152;Ç&#x20AC;Ĺ?Ä?Ä&#x17E; Ĺ?Ĺś ^Ä&#x201A;Ć?ĹŹÄ&#x201A;Ć&#x161;Ä?Ĺ&#x161;Ä&#x17E;Ç Ä&#x201A;Ĺś ŽŜ DÄ&#x201A;Ç&#x2021; Ď­ Ĺ?Ĺś ZÄ&#x17E;Ĺ?Ĺ?ĹśÄ&#x201A;Í&#x2DC; WĹ&#x161;Ĺ˝Ć&#x161;Ĺ˝ Ć?ĆľÄ?ĹľĹ?ĆŠ Ä&#x17E;Ä&#x161;

^Ć&#x161;Ä&#x201A;Ĺś ĹľÄ&#x201A;Ç&#x2021; ůŽŽŏ ĹŻĹ?ĹŹÄ&#x17E; Ä&#x201A; Ä&#x161;ƾžžÇ&#x2021;Í&#x2022; Ä?ĆľĆ&#x161; Ĺ&#x161;Ä&#x17E; Ć&#x152;Ä&#x17E;Ä&#x201A;Ä?Ć&#x161;Ć? ĹŻĹ?ĹŹÄ&#x17E; Ä&#x201A; Ĺ&#x161;ƾžÄ&#x201A;Ĺś Ć&#x161;Ĺ˝ ĨÄ&#x201A;Ä?Ĺ?ĹŻĹ?Ć&#x161;Ä&#x201A;Ć&#x161;Ä&#x17E; Ć&#x152;Ä&#x17E;Ä&#x201A;ĹŻĹ?Ć?Ć&#x; Ä? ĹľÄ&#x17E;Ä&#x161;Ĺ?Ä?Ä&#x201A;ĹŻ Ä&#x17E;ĹľÄ&#x17E;Ć&#x152;Ĺ?Ä&#x17E;ĹśÄ?Ç&#x2021; Ć&#x161;Ć&#x152;Ä&#x201A;Ĺ?ĹśĹ?ĹśĹ? Ĺ?Ĺś ^Ä&#x201A;Ć?ĹŹÄ&#x201A;Ć&#x161;Ä?Ĺ&#x161;Ä&#x17E;Ç Ä&#x201A;ĹśÍ&#x2DC; >Ĺ?ĨÄ&#x17E;ĹŻĹ?ĹŹÄ&#x17E; ^Ć&#x161;Ä&#x201A;Ĺś Ĺ?Ć? Ä?ŽŜĆ&#x161;Ć&#x152;ŽůůÄ&#x17E;Ä&#x161; Ä?Ç&#x2021; Ä&#x201A; Ä?ŽžĆ&#x2030;ĆľĆ&#x161;Ä&#x17E;Ć&#x152; Ĺ˝Ć&#x2030;Ä&#x17E;Ć&#x152;Ä&#x201A;Ć&#x161;Ĺ˝Ć&#x152; Ĺ?Ĺś Ć&#x161;Ĺ&#x161;Ä&#x17E; DĹ˝Ä?Ĺ?ĹŻÄ&#x17E; Ä&#x161;ĆľÄ?Ä&#x201A;Ć&#x; ŽŜ hĹśĹ?Ć&#x161;Í&#x2DC; WĹ&#x161;Ĺ˝Ć&#x161;Ĺ˝ Ć?ĆľÄ?ĹľĹ?ĆŠ Ä&#x17E;Ä&#x161;

Éş Page B4 â&#x20AC;&#x153;The support that weâ&#x20AC;&#x2122;ve received from Saskatchewan is really outstanding,â&#x20AC;? said Monteith. â&#x20AC;&#x153;We couldnâ&#x20AC;&#x2122;t be any happier. The feedback we get â&#x20AC;&#x201C; people really believe in the cause.â&#x20AC;?

STARS is a charitable not for profit organization that relies on government, corporate and community support. â&#x20AC;&#x153;We see support in all different aspects of the business whether thatâ&#x20AC;&#x2122;s through our lottery or through corporate donations. We are very pleased to be part of the community and having that kind of support,â&#x20AC;? said Monteith.

STARS has flown over 821patients since its inception in the province using two helicopters to provide 24/7 air ambulance coverage.

Since STARS began service in Alberta in 1985, they have flown over 26,000 missions from Manitoba to British Columbia with continually expanding air ambulance and ground services.

The new MEU for Saskatchewan will help STARS to work closely

with what they call their â&#x20AC;&#x153;chain of survivalâ&#x20AC;? emergency responders in rural communities. â&#x20AC;&#x153;It helps us to build relationships with those rural communities. It helps us collectively to provide better patient care if we are all operating on the same methodology on how we would react in certain situations,â&#x20AC;? explained Monteith. â&#x20AC;&#x153;All the local rural emergency responders are usually the first people on call for any kind of emergency that STARS is called out to. â&#x20AC;&#x153;So that could be a farming accident in a small city. It could be an oilfield.â&#x20AC;?

The availability of the MEU makes it easier for health care responders to upgrade their skills without the cost of attending out of town training sessions.

The MEU is already booked well into the summer as the word spreads. â&#x20AC;&#x153;As a health care provider, depending on your discipline, itâ&#x20AC;&#x2122;s very difficult, especially for people in remote rural communities to be able to get into a facility in a larger centre for train-

ing,â&#x20AC;? said Monteith. â&#x20AC;&#x153;This is just one way that we can provide that training without them being delayed in getting it or having to take the time off. â&#x20AC;&#x153;As well it removes the expense of travel for training.â&#x20AC;?

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PIPELINE NEWS June 2014

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PIPELINE NEWS June 2014

Have a new unit ready for the customer who needs it Regina â&#x20AC;&#x201C; It pays to be Johnny-on-the-spot when a customer needs a new truck, fast. Thatâ&#x20AC;&#x2122;s according to Ron Duda, the corporate sales manager for Redhead Equipmentâ&#x20AC;&#x2122;s truck and trailer division.

Asked what products or product lines have seen the most growth for you in the oilpatch, he replied that vacuum trucks were growing the most. That includes tri-drives with either tandem or single steering. Theyâ&#x20AC;&#x2122;ve been going to Lloydminster, Swift Current, and Estevan. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;ve sold a few to Fort St. John, B.C.,â&#x20AC;?

Duda said.

Water trucks are another hot seller. â&#x20AC;&#x153;We like to get them rigs and carry rigged up units in stock,â&#x20AC;? he said.

With the expansion to a much larger new location, they are able to carry more inventory. â&#x20AC;&#x153;Most truck manufacturers take two-tothree months to build a specialized truck to their specifications.

Because of that, people have needs that come up that are unforeseen.

Major components fail.

Accidents happen. More work comes up. You have a need this week you didnâ&#x20AC;&#x2122;t foresee last week,â&#x20AC;? Duda said.

Most dealerships tend to be wary about carrying specialized units in inventory, but he said, â&#x20AC;&#x153;At the end of the day, they typically move fairly quickly.â&#x20AC;?

Across all five locations in Regina, Saskatoon, Swift Cur-

rent, Lloydminster and Estevan, he said maybe 30 per cent of sales in his division are oilpatch related. The construction side is a further 30 to 40 per cent. The rest is made of up logging, grain and specialty applications. â&#x20AC;&#x153;For the last two years, itâ&#x20AC;&#x2122;s been steady,â&#x20AC;? he said, noting theyâ&#x20AC;&#x2122;ve sold 200 new trucks overall per year. Previous to that there has been incremental growth for the last five years.

Estevan now has a dedicated truck and trailer sales department.

When it comes to the oilpatch, he said, â&#x20AC;&#x153;The nature of the labour tends to be hard on equipment. You might have four, five or six guys in the same truck in a year.â&#x20AC;?

Oilpatch trucks include winch tractors, bed trucks, vac trucks, pressure trucks, coil tubing units, and even more specialized equipment.

In general, oilpatch truck life cycles tend to be shorter than other applications.

For instance, fluid haulers pulling tridem tankers are in for new units relatively soon. â&#x20AC;&#x153;Those guys are trading those trucks in in four years,â&#x20AC;? Duda said.

Specialized trucks, on the other hand, are kept much longer.

As for new lines, Duda pointed out his window to the lot, indicating a Ridgemar belly dump trailer. In 2011, they started carrying the BWS EZ-2-Load trailers with a wide array of models. That includes

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double drops that are air and hydraulic detachable.

Theyâ&#x20AC;&#x2122;re standard equipment trailers and heavy-duty rigid neck trailers. They also carry Tag-a-long trailers with pintle hitches.

As for where he sees the market is going, Duda replied, â&#x20AC;&#x153;That is a good question I think forestry is going to get busier. Thatâ&#x20AC;&#x2122;s totally related to U.S. housing starts. The Saskatchewan economy is getting more diversified.

Population growth will spur construction on the residential and commercial sides. That requires dump trucks and gravel trucks. Thereâ&#x20AC;&#x2122;s also things like additional gravel hauling for RMs because of oilfield and farm activity.â&#x20AC;?

As for the oilpatch, he said it depends on exploration, maintenance and fluid hauling.

In southeast Saskatchewan, for instance, heâ&#x20AC;&#x2122;s found thereâ&#x20AC;&#x2122;s less fluid hauling due to the increase in crude-by-rail in Stoughton. Less fluid is being hauled, and fewer miles, too.

B7

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PIPELINE NEWS June 2014

^Ć&#x161;Ä&#x201A;ĹśÄ&#x161;Ĺ?ĹśĹ? Ĺ?Ĺś ĨĆ&#x152;ŽŜĆ&#x161; ŽĨ Ć&#x161;Ĺ&#x161;Ä&#x17E;Ĺ?Ć&#x152; ĹśÄ&#x17E;Ç ĹľĹ˝Ä?Ĺ?ĹŻÄ&#x17E; Ć?Ä&#x201A;Ć&#x161;Ä&#x17E;ĹŻĹŻĹ?Ć&#x161;Ä&#x17E; ĹŻĹ˝Ä?Ä&#x201A;Ć&#x;ŽŜ Ä&#x201A;Ć&#x152;Ä&#x17E;Í&#x2022; ĨĆ&#x152;Žž ĹŻÄ&#x17E;Ĺ&#x152;Í&#x2022; ZĹ˝Ä?Ä&#x17E;Ć&#x152;Ć&#x161; ^Ä&#x201A;Ç&#x2020;ŽŜÍ&#x2022; DÄ&#x17E;ĹŻĹŻĹ?Ć?Ć?Ä&#x201A; ^Ä&#x201A;Ç&#x2020;ŽŜÍ&#x2022; :Ä&#x201A;ĹľÄ&#x17E;Ć? ĹŻÄ&#x201A;Ć&#x152;Ĺ?Ä&#x17E;Í&#x2022; <Ç&#x2021;ĹŻÄ&#x17E; >ĆľÄ?Í&#x2022; :Ä&#x17E;ŜŜÄ&#x201A; >ĆľÄ?Í&#x2022; EÇ&#x2021;ĹŻÄ&#x201A; ^Ä&#x201A;Ç&#x2020;ŽŜ Ä&#x201A;ĹśÄ&#x161; ZÇ&#x2021;Ä&#x201A;Ĺś ^Ä&#x201A;Ç&#x2020;ŽŜÍ&#x2DC; Photo by Brian Zinchuk

Border Insulators starts operations in Kindersley Redvers â&#x20AC;&#x201C; Itâ&#x20AC;&#x2122;s very red and shiny, and itâ&#x20AC;&#x2122;s Border Insulators Inc.â&#x20AC;&#x2122;s new mobile satellite

location, to be deployed to Kindersley.

The Estevan-based company was showing

off its new trailer at the Redvers Oil Showcase on May 8 and 9. It will support their new

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operations servicing the western side of the province. â&#x20AC;&#x153;We started working out there in January,â&#x20AC;? said Kyle Luc, who handles business development. They are working in the Kindersley and Kerrobert areas, and also get down to Shaunavon.

Six people are working out of Kindersley, doing industrial insulation and buildings. â&#x20AC;&#x153;We can build them in the shop to spec or do a field build,â&#x20AC;? Luc said.

The trailer had an office and coffee area in the front part, and a work area in the back. â&#x20AC;&#x153;It stays in one central location,â&#x20AC;? Luc said.

Border Insulators

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has two sister companies â&#x20AC;&#x201C; Rapid Heating Services and R & R Tanks and Equipment Rentals Ltd. Rapid Heating has a frac water heating unit that has been working at Whitecourt, Alta., of late. Thatâ&#x20AC;&#x2122;s a 15-hour drive from home base in Estevan. â&#x20AC;&#x153;We had a couple of contacts up there.

On Feb. 4, we did our first frac up there,â&#x20AC;? Luc noted. Steady work is expected in northern Alberta over the summer.

A fire this past spring destroyed the paint shop building used to finish tanks constructed in their yard east of Estevan.

The cause of the fire is undetermined, he said.

The loss included the building, two tanks and some welding supplies. However, it didnâ&#x20AC;&#x2122;t take long to get a

replacement up. By early May, the new building was nearing completion with cement for the floor expected in midMay. The new shop is twice the size of the original, moving from a 40x60 ft. building to a 60x80 ft.building. The walls are also higher, to accommodate tanks up to 2,000-bbl. in size. â&#x20AC;&#x153;Tank building is picking up,â&#x20AC;? Luc said.

The appetite for tanks is changing, too. Clients want bigger tanks, with lots of requests for 2,000-bbl. as opposed to the 750 to 1,500-bbl. tanks that have been more common in southeast Saskatchewan. That follows a trend seen in Western Saskatchewan.

In addition to fluid tanks, Luc said they are looking at other products. â&#x20AC;&#x153;We want to get into shale bins, too,â&#x20AC;? he said.

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PIPELINE NEWS June 2014

B9

Aboriginal hiring trends under study Calgary â&#x20AC;&#x201C; Some oil and gas companies in Saskatchewan are proactively stepping up their aboriginal recruitment programs to attract and retain needed workers.

A new report by the Petroleum Human Resources Council, a division of Enform Canada released on April 28 expects Aboriginal hiring strategies will grow in importance as demand for oil and gas workers continues to grow.

The Councilâ&#x20AC;&#x2122;s report, HR Trends and Insights: Aboriginal Employment in Saskatchewanâ&#x20AC;&#x2122;s Oil and Gas Industry, found that forward-thinking oil and gas are employing effective Aboriginal hiring programs.

The report reveals companies with effective recruitment programs formed long-term, trusting relationships

with Aboriginal communities and set measurable goals for Aboriginal employment.

They also had retention programs that addressed cultural differences by incorporating practices such as multiple hires, mentoring, and cultural training.

Aboriginals are expected to represent 21 to 24 per cent of Saskatchewanâ&#x20AC;&#x2122;s total population by 2031 according to census indicators, but they currently comprise just 7.5 per cent of the provinceâ&#x20AC;&#x2122;s oil and gas industry workers.

Aboriginal hiring strategies are timely given the ongoing controversy that continues to swirl around alleged abuse of the temporary foreign workers program.

There are growing calls for a federal government audit of that

employment immigration program.

The Council said Aboriginal recruitment strategies will need to become a key focus for Saskatchewanâ&#x20AC;&#x2122;s oil and gas companies with unemployment in the province at 3.4 per cent in April, the lowest in the country. â&#x20AC;&#x153;Results of the survey highlight the tremendous opportunity for more companies to employ the recruitment and retention strategies already in practice by some of Saskatchewanâ&#x20AC;&#x2122;s oil and gas employers,â&#x20AC;? said Carla CampbellOtt, executive director of the Council. â&#x20AC;&#x153;Engaging a local pool of labour will benefit the provinceâ&#x20AC;&#x2122;s growing Aboriginal communities, while helping employers to fill labour needs in Canadaâ&#x20AC;&#x2122;s second largest oil producing province.â&#x20AC;?

The Council esti-

mates there will be as many as 3,450 direct job openings between 2012 and 2022, as conventional oil production in the province is expected to increase by 5.4 per cent between 2013 and 2018.

Industry spending will also generate as many as 20,500 indirect jobs per year by 2022.

Best industry hiring practices noted in the report include partnerships with Aboriginal employment/training centres and assisting with transportation and housing for employees working away from home.

Some oil and gas companies also develop

2013 as western Canadian heavy oil producers tackled ways to get their product to more attractive markets such as the United States Gulf Coast which offers greater coking capacity.

The rush to rail also was in response to tight capacity on export pipelines which resulted in a significant discount relative to WTI.

directly in, and supporting, the provinceâ&#x20AC;&#x2122;s oil and gas industry.

It is also supported by interviews with employers and labour-force development stakeholders.

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Crude-by-rail increases A total of 45.87 million bbl. of Canadian crude was exported by rail in 2013 compared to 16.96 million bbl. in 2012 â&#x20AC;&#x201C; a year-over-year increase of 170 per cent, according to National Energy Board statistics.

Rail shipments grew from only 15,980 bpd in the first quarter of 2012 to 146,047 bpd in the fourth quarter of

processes to assist new workers in transitioning to full-time employment.

The Council report is based on an online survey completed by companies operating

Average volumes for the year lifted to about 126,000 bpd in 2013 from 46,000 bpd the prior year.

The NEB updates its statistics every quarter.

Phil Jacobson Redvers, SK

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PIPELINE NEWS June 2014

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Jory Shuba has a Mazda 323 as his toy when heâ&#x20AC;&#x2122;s not Ç Ĺ˝Ć&#x152;ĹŹĹ?ĹśĹ? ŽŜ Ć&#x161;Ĺ&#x161;Ä&#x17E; Ä?Ĺ?Ĺ? Ć?Ć&#x161;ƾčÍ&#x2DC; Photo by Brian Zinchuk

Regina â&#x20AC;&#x201C; Qualified mechanics are in high demand, especially those who know diesels. Jory Shuba of Regina is one of those. He works on the Mack Trucks side of Redhead Equipment in Regina.

Shuba has been working as a mechanic for almost eight years now. He grew up in Regina. He is a journeyman truck and transport mechanic.

Asked what he specializes in, Shuba replied, â&#x20AC;&#x153;Pretty much everything, from brakes to transmissions to engine rebuilds.â&#x20AC;? â&#x20AC;&#x153;I started doing the automotive trade through high school. When I graduated, I worked for Auto Gallery. I was 19 when I started at Fleet Check. I came to Redhead seven-and-a-half years ago.â&#x20AC;?

The 27-year-old says he was probably eight or nine when he first picked up a wrench.

All of his training has been done through SIAST in Saskatoon and Mack OEM training. He got his journeyman papers in October 2012.

Asked what his favourite part of the job is, his response is the satisfaction found in making things work, specifically engines. â&#x20AC;&#x153;Something comes in, and it doesnâ&#x20AC;&#x2122;t run. It leaves the door running.â&#x20AC;?

Shubaâ&#x20AC;&#x2122;s least favourite things are wheel seals and brakes.

Like many mechanics, when heâ&#x20AC;&#x2122;s not under a hood at work, heâ&#x20AC;&#x2122;s under a hood at home. His other set of wheels is a 1988 Mazda 323. â&#x20AC;&#x153;Thatâ&#x20AC;&#x2122;s my toy,â&#x20AC;? he said.

His primary wheels are a 2005 Ford pickup.

Shuba enjoys â&#x20AC;&#x153;playing in the mud,â&#x20AC;? racing in his F250 Ford diesel. He hunts, fishes, sleds and quads the odd time.

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PIPELINE NEWS June 2014

B11

Diamond anniversary? Try chrome anniversary

Maverick Brinkhurst, a swamper with Spearing Service in Pipestone, Man., was grinning from ear to ear as he checked out a new show truck. This unit has been sold to a Lloydminster customer for delivery in June.

Redvers â&#x20AC;&#x201C; A 75th anniversary might be considered a diamond anniversary, but when it comes to Cervus Peterbilt, they went with chrome instead. â&#x20AC;&#x153;This is a 2015 Model 389. Itâ&#x20AC;&#x2122;s our traditional model,â&#x20AC;? said Karl Haselhan, truck and trailer representative with Cervus Equipment in Estevan. (Cervus was formerly Frontier Peterbilt). â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s Peterbiltâ&#x20AC;&#x2122;s 75th anniversary this year. Our Lloydminster branch decided to make up a show truck,â&#x20AC;? he said.

Itâ&#x20AC;&#x2122;s showy, alright. Maverick Brinkhurst, a swamper with Spearing Service who works out of Pipestone had a huge smile across his face as he took pictures of it with his smartphone. â&#x20AC;&#x153;This thingâ&#x20AC;&#x2122;s a killer,â&#x20AC;? he said.

The truck had chrome packages, special headlights, LED lighting, special deck plates, eight-inch straight stacks and vinyl-wrapped fuel tanks.

It wasnâ&#x20AC;&#x2122;t the only set of wheels Cervus brought out for Redvers Oil Showcase. They had four trucks there, including two Model 567s, a model

that just came out in January. â&#x20AC;&#x153;They have an eight-inch wider cab,â&#x20AC;? Haselhan said, noting that was a huge improvement.

Another change is a hanging clutch pedal, as opposed to one that pivots on the floor. Itâ&#x20AC;&#x2122;s a different motion, and easier on the driverâ&#x20AC;&#x2122;s legs. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s air-assisted now, so itâ&#x20AC;&#x2122;s easier on the knee and leg,â&#x20AC;? Haselhan said, adding that a lot of drivers can end up with leg issues, with their joints wearing out.

Speaking to Pipeline News early on the second day of the show, Haselhan said â&#x20AC;&#x153;I think this has been one of our best shows. This is a good show for us because this is our area. We get to talk to people we know.

Doug Donald, who does outside parts sales, said, â&#x20AC;&#x153;Thereâ&#x20AC;&#x2122;s quite a few of these guys I see on a weekly basis.

Itâ&#x20AC;&#x2122;s nice to see their equipment shined up and chat with them on a social environment.â&#x20AC;?

Another unit on display was a Model 348 truck rigged up as a water pressure truck. It can be configured as either a Class 7 or 8 truck, depending

dĹ&#x161;Ĺ?Ć? DĹ˝Ä&#x161;Ä&#x17E;ĹŻ ĎŻĎ´Ďľ Ĺ?Ć? Ä&#x201A; Ć?Ä&#x201A;Ä?Ć&#x152;Ĺ?ÄŽ Ä?Ä&#x17E; ŽŜ Ć&#x161;Ĺ&#x161;Ä&#x17E; Ä&#x201A;ĹŻĆ&#x161;Ä&#x201A;Ć&#x152; ŽĨ Ä?Ĺ&#x161;Ć&#x152;ŽžÄ&#x17E;Í&#x2DC; on the specs. In this case, the rig-up was done by Edmonton Trailer. Cervus had two trucks done up identically, twins, if you like, with one in Estevan, and the other in Edmonton.

Asked why it was configured as a 4x4, Haselhan said, â&#x20AC;&#x153;You can go

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virtually anywhere. Youâ&#x20AC;&#x2122;ve got the clearance.â&#x20AC;?

The steer tires had enough bite to make a difference, too. He noted that with 4x4, youâ&#x20AC;&#x2122;ve not only got tires pushing the truck, but pulling as well.

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PIPELINE NEWS June 2014

B13

Husky sanctions new Edam West SAGD Â&#x201E; By Geoff Lee Calgary â&#x20AC;&#x201C; Husky Energy Inc. is developing a new 3,500 barrel per day thermal project called Edam West in the Lloydminster heavy oil region.

News of the Edam West project came during the companyâ&#x20AC;&#x2122;s first quarter conference call to analysts on May 7. â&#x20AC;&#x153;Our board has just sanctioned Edam West with a schedule to be in production in 2016,â&#x20AC;? said CEO Asim Ghosh.

The project will be modeled after the 3,500 bpd Sandall thermal project that began producing in the first quarter of 2014.

That seven well SAGD facility is current pumping about 4,500 bpd, exceeding its design capacity. â&#x20AC;&#x153;The nice things about these projects â&#x20AC;&#x201C; they provide attractive returns,â&#x20AC;? said Ghosh. â&#x20AC;&#x153;We can build the modules quickly, and we can run them cost efficiently for a long life to create sustained production and value over the long term.â&#x20AC;?

Production from Huskyâ&#x20AC;&#x2122;s heavy oil thermal projects was approximately 41,000 bpd during the first quarter with some high oil recovery rates expected from the latest series of SAGD projects. â&#x20AC;&#x153;What we have seen in places like Pikes Peak where weâ&#x20AC;&#x2122;ve been in this business quite awhile â&#x20AC;&#x201C; weâ&#x20AC;&#x2122;ve seen up to 60-70 per cent recoveries on these projects,â&#x20AC;? said chief operating officer Rob Peabody in response to an analyst question. â&#x20AC;&#x153;Thatâ&#x20AC;&#x2122;s not what we assume for our economics when we sanction them. Weâ&#x20AC;&#x2122;ll see how they do over time, but certainly in the long term we expect to see recoveries in excess of 50 per cent.

â&#x20AC;&#x153;I think we actually sanction these projects on 30 to 35 per cent recovery.â&#x20AC;?

Work continues on advancing the 10,000 bpd Rush Lake thermal project towards first oil in late 2015. â&#x20AC;&#x153;We have already sanctioned Edam East and Vawn, which are both 10,000 barrel a day projects, coming on in 2016,â&#x20AC;? said Peabody. â&#x20AC;&#x153;One after another, the thermal projects are being brought on production often ahead of schedule and surpassing our expectations.â&#x20AC;?

Husky also drilled 23 heavy oil horizontal wells in the quarter out of a planned 140-well program for 2014.

A total of 73 CHOPS wells (cold heavy oil production with sand) were drilled in the quarter out of a planned 177 well program in 2014.

Huskyâ&#x20AC;&#x2122;s total upstream production averaged 326,000 barrels of oil equivalent per day compared to 321,000 boepd in the first quarter of 2013.

Output was up from 308,000 boepd in the fourth quarter of 2013 thanks in part to growth of Huskyâ&#x20AC;&#x2122;s liquids rich gas and oil resources plays in Western Canada. â&#x20AC;&#x153;The headline continues to be the steady transformation of our portfolio into high netback liquids rich gas and oil resource play,â&#x20AC;? said Ghosh. â&#x20AC;&#x153;Particularly, weâ&#x20AC;&#x2122;ve been seeing great growth at Ansell which is a liquids rich gas play that has been undergoing rapid growth.â&#x20AC;?

In the first quarter, Husky averaged about 17,000 boepd from this asset up about 18 per cent from the first quarter a year ago. â&#x20AC;&#x153;â&#x20AC;ŚWe are continu-

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ing with our multi rig drilling program,â&#x20AC;? said Peabody. â&#x20AC;&#x153;Overall production from our resource plays exceeds 30,000 barrels per day so we are well on our way to our target of 50,000 barrels of oil equivalent per day by 2017. â&#x20AC;&#x153;Overall, we drilled 15 wells and completed nine over our liquids rich portfolio in the first quarter.â&#x20AC;?

Production from Western Canada oil resource plays in the quarter approached 8,000 bpd, an increase of 13 per cent over the first quarter of 2013.

A total of 18 horizontal wells were drilled and 22 wells completed over the quarter, with drilling activities centred on the Viking, Oungre Bakken and North Cardium oil resource plays.

Peabody reported the Sunrise Energy project in the Athabasca oilsands is approximately 87 percent complete and advancing as planned towards startup in the second half of 2014.

On the financial front, Husky reported net earnings of $662 million in the first three months of 2014, a 24 per cent

WHERE ENERGY MEETS SAFETY

increase from $535 million in the first quarter of 2013.

Cash flow from operations totaled $1.5 billion, an increase of 20 per cent over $1.3 billion in the first quarter of 2013, partly due to higher realized prices for commodities and narrower heavy oil differentials.

CFO Alister Cowan told the conference the Lloydminster upgrader operated at about 50 per cent capacity in April due to some plant equipment issues. â&#x20AC;&#x153;We also have a partial outage schedule for

this fall when we expect to maintain operating capacity at about 80 per cent during that 42 day program,â&#x20AC;? said Cowan.

In the first quarter, Husky completed an expansion of its pipeline system from the Sandall thermal development to the existing gathering system that leads to Hardisty, Alberta.

Construction is underway on two 300,000-barrel tanks and additional piping interconnections at Hardisty to further expand storage capability starting in 2015.

The big news for shareholders in the quarter was first gas produced from Huskyâ&#x20AC;&#x2122;s Liwan gas project in the China Sea. â&#x20AC;&#x153;It was something of a whirlwind quarter for us at Husky as the biggest project in our history achieved first gas just seven years after its discovery,â&#x20AC;? said Ghosh. â&#x20AC;&#x153;Liwan is now flowing gas into the fastest growing energy market in the world ... Overall once again this quarter we kept it clear around the fundamentals we applied in our business plan three years ago.â&#x20AC;?

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PIPELINE NEWS June 2014

Feds to phase out of unsafe rail tank cars

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Â&#x201E; By Geoff Lee Ottawa â&#x20AC;&#x201C; The federal government plans to phase out thousands of older rail cars used to transport oil and ethanol over three years to further improve rail safety in Canada.

The government is also ordering the removal 5,000 of the least crash resistant tank cars from service within 30 days of the announcement made by Transport Canada Minster Lisa Raitt on April 23. â&#x20AC;&#x153;The rail sector believes rail tank cars used for transporting flammable liquids should be built to the highest standardsâ&#x20AC;? said the Canadian Railway Association in a statement. â&#x20AC;&#x153;Todayâ&#x20AC;&#x2122;s announcement of a three-year phase-out for legacy tank cars marks an important step toward a fleet of cars that will enhance safety.â&#x20AC;?

The tank cars slated for immediate removal from shipping dangerous goods are those that are not equipped with continuous bottom reinforcement, which pose a greater risk to leak in a derailment.

Those cars in question can be repurposed to carry non-dangerous products.

Rail carriers are also immediately required to prepare emergency response plans for the transportation of crude oil, gasoline, diesel, aviation fuel and ethanol.

A single car in a train would trigger the need for such a plan, said Raitt in a news conference.

The plans will assist local emergency responders at an accident site by providing them with 24-hour technical experts and timely response teams with specialized equipment.

Emergency response will be strengthened by a task force of stakeholders such as municipalities, first responders, railways and shippers.

Rail companies must reduce the speed of trains carrying dangerous goods and implement other key operating practices effectively immediately.

The new safety measures build on the safety recommendations of the Transportation Safety Board (TSB) in the wake of the Lac-MĂŠgantic train derailment and fire last summer that killed 47 people. â&#x20AC;&#x153;The measures I am announcing today improve the safety of the railway and transportation of dangerous goods systems from coast to coast to coast,â&#x20AC;? said Raitt in a statement.

The latest safety measures reflect the boom in crude by rail shipments in Canada and the potential for more accidents.

Crude shipments by rail have surpassed more than 200,000 barrels per day and are heading to 720,000 barrels per day by 2016 according to the Canada Association of Petroleum Producers.

The American Railway Association reports there were over 400,000 railcar loads of crude oil shipped in the U.S. in 2013.

Saskatchewan Premier Brad Wall commented on Facebook that, â&#x20AC;&#x153;In 2013 more crude (1.15 million gallons) spilled in railway incidents than in the previous 37 years combined.â&#x20AC;? ɸ Page B15

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PIPELINE NEWS June 2014 The federal government plans to remove the most dangerous DOT-111 tank cars carrying petroleum products from service by the end of May. File photo

Éş Page B14 Many of those spills involved the older DOT-111 tank cars currently being taken out of service.

In January 2014, the federal government introduced new standards for the DOT-111 tanks cars used to carry oil and ethanol classified as dangerous goods.

New tank cars are required to be built with thicker steel as well as adding top fitting and head shield protection to each car.

All DOT-111 tank cars built before the new January standard that are used to transport crude oil and ethanol will be phased out or refitted within three years.

Raitt told reporters that there are approximately 65,000 of the older tank cars in North America transporting oil and ethanol with a lot of cross-border hauling.

The U.S. has yet to

decide on how it will respond to the unsafe DOT-111 tank cars, but Raitt says Canada is consulting with American regulatory agencies and industry on how to improve the new tank car standard.

These measures could include further improving tank car design, or retrofitting, repurposing or retiring older tank cars in the North American fleet.

To date, industry has ordered approximately 55,000 tank cars to be new standard, representing nearly half of the current DOT111 tank car fleet used to transport flammable liquids, such as crude oil.

Alberta Transport Minister Wayne Drysdale said his province supports the new federal rail safety measures and noted Alberta has addressed the previous

B15

In January, the federal government introduced new standards for DOT-111 tank cars that carry dangerous goods such as crude oil. /ĹľÄ&#x201A;Ĺ?Ä&#x17E; Ć?ĆľÄ?ĹľĹ?ĆŠÄ&#x17E;Ä&#x161;

TSB recommendations from the Lac-MĂŠgantic investigation for railways under provincial authority.

Those recommendations dealt with uncontrolled movements by unattended locomotives and tanker cars carrying dangerous goods. â&#x20AC;&#x153;Alberta Transportation officials conduct compliance reviews of industrial railway facilities and inspect railway

tracks, locomotives and automated railway crossings,â&#x20AC;? said Drysdale. â&#x20AC;&#x153;They also provide training and information sessions for industry, municipalities and other key stakeholders.â&#x20AC;?

Alberta Transportation regulates industrial

spur lines used to load and unload railcars off of mainlines and rail lines operated by historical parks.

They also regulate two short-haul public railways operated solely within Alberta to transport goods or passengers.

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B16

PIPELINE NEWS June 2014

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PIPELINE NEWS June 2014

B17

Bringing top level care and equipment to industrial ambulance service four years of school and training.â&#x20AC;?

Young spent 22 years with the Yorkton Fire Protective Services, and retired as a deputy chief. He joined up with the Monettes two years because of the strong synergies between them.

Monette worked dĹ&#x161;Ĺ?Ć? Ĺ?Ć? ŜŽĆ&#x161; Ä&#x201A; Ć?Ĺ&#x161;Ä&#x17E;ĹŻĹŻ ŽŜ Ć&#x161;Ĺ&#x161;Ä&#x17E; Ä?Ä&#x201A;Ä?ĹŹ ŽĨ Ä&#x201A; Ć&#x161;Ć&#x152;ĆľÄ?ĹŹ Ç Ĺ?Ć&#x161;Ĺ&#x161; Ä&#x201A; Ć?Ć&#x2030;Ć&#x152;Ĺ?ĹśĹ?Ä?Ĺ˝Ä&#x201A;Ć&#x152;Ä&#x161;Í&#x2022; ÄŽĆ&#x152;Ć?Ć&#x161; Ä&#x201A;Ĺ?Ä&#x161; ĹŹĹ?Ć&#x161; Ä&#x201A;ĹśÄ&#x161; Í&#x2DC; Z D Safety Servicesâ&#x20AC;&#x2122; rigs are fully-equipped ambulances with top level gear, the same as with the local ambuÇ&#x2021;Žƾ Ç Ĺ˝ĆľĹŻÄ&#x161; ÄŽĹśÄ&#x161; ŽŜ Ä&#x201A; Ć&#x2030;Ć&#x152;Ĺ˝Ç&#x20AC;Ĺ?ĹśÄ?Ĺ?Ä&#x201A;ůͲůÄ&#x17E;Ç&#x20AC;Ä&#x17E;ĹŻ Ä&#x201A;ĹľÄ?ƾůÄ&#x201A;ĹśÄ?Ä&#x17E;Í&#x2DC; dĹ&#x161;Ä&#x17E;Ç&#x2021;Í&#x203A;Ć&#x152;Ä&#x17E; Ä&#x201A;ĹŻĆ?Ĺ˝ Ď°Ç&#x2020;Ď° Ä&#x161;ĆľÄ&#x201A;ĹŻĹŻÇ&#x2021; ƾŜĹ?Ć&#x161;Ć? Ä?ĆľĹ?ĹŻĆ&#x161; ŽŜ lance service in Carlyle Ć&#x161;Ć&#x152;ĆľÄ?ĹŹ Ä?Ĺ&#x161;Ä&#x201A;Ć?Ć?Ĺ?Ć?Í&#x2DC; ĆľĆ&#x152;Ć&#x;Ć? DŽŜÄ&#x17E;ĆŠÄ&#x17E;Í&#x2022; Ä?Ĺ˝Í˛Ĺ˝Ç ĹśÄ&#x17E;Ć&#x152; Ĺ?Ĺś Ć&#x161;Ĺ&#x161;Ä&#x17E; Ä?ĆľĆ?Ĺ?ĹśÄ&#x17E;Ć?Ć?Í&#x2022; Ĺ?Ć? Ä&#x201A;ĹśÄ&#x161; Ä&#x201A;Ä&#x161;Ç&#x20AC;Ä&#x201A;ĹśÄ?Ä&#x17E; Ä?Ä&#x201A;Ć&#x152;Ä&#x17E; Ć&#x2030;Ä&#x201A;Ć&#x152;Ä&#x201A;ĹľÄ&#x17E;Ä&#x161;Ĺ?Ä? for a few years, and that Ç Ĺ&#x161;Ĺ˝ Ä&#x201A;ĹŻĆ?Ĺ˝ Ć&#x2030;Ć&#x152;Ä&#x201A;Ä?Ć&#x;Ä?Ä&#x17E;Ć? Ç Ĺ?Ć&#x161;Ĺ&#x161; Ć&#x161;Ĺ&#x161;Ä&#x17E; ĹŻĹ˝Ä?Ä&#x201A;ĹŻ Ä&#x201A;ĹľÄ?ƾůÄ&#x201A;ĹśÄ?Ä&#x17E; Ć?Ä&#x17E;Ć&#x152;Ç&#x20AC;Ĺ?Ä?Ä&#x17E; Ĺ?Ĺś zĹ˝Ć&#x152;ĹŹĆ&#x161;ŽŜÍ&#x2DC; Photo by Brian Zinchuk sparked the idea of getting into the industrial Redvers â&#x20AC;&#x201C; RCM supply store located Yorkton or via a mobile side of the business.

RCMâ&#x20AC;&#x2122;s field units Safety Services of in Yorkton. It carries classroom, an enclosed are not a shell on the Yorkton is expanding trailer large enough for everything from fire back of a pickup with into the oilpatch. retardant clothing and 36 people. â&#x20AC;&#x153;This is our third Monette said, â&#x20AC;&#x153;Our a spineboard, first aid AEDs to air packs. year now,â&#x20AC;? said Curtis The third was RCM background is provincial kid and AED. These are purpose-built ambuMonette, who owns Training and Consultambulance throughout the business with his Saskatchewan. We have lances, fully equipped ing, which is owned and stocked. They are brother Ryan (thus acthree-ways by Young 20 years combined onbuilt on 4x4 dually counting for the RCM car experience.â&#x20AC;? and the two Monettes. truck chassis and have in the name). â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re It offers a complete â&#x20AC;&#x153;Iâ&#x20AC;&#x2122;m one of three both practicing paraadvanced care paramed- off-road tires. They are line of safety training set up to tow rescue medics in Yorkton. at either their site in ics in Yorkton. It takes â&#x20AC;&#x153;Iâ&#x20AC;&#x2122;m an advanced care paramedic, and heâ&#x20AC;&#x2122;s an intermediate care paramedic. Itâ&#x20AC;&#x2122;s our second full-time jobs.â&#x20AC;?

Sharing the Energy There were actually three sister companies represented at this particular booth in the Redvers Oil Showcase on May 8 and 9. The first was RCM Safety Services, which provides on-site medical, fire, rescue and standby services. It is jointly owned

by Ryan and Curtis Monette.

Crescent Point is proud to The second was The be part of the community.

Safety Warehouse 911 Inc., owned by Ross crescentpointenergy.com Young. Itâ&#x20AC;&#x2122;s a full safety, health and environment

toboggans and snowmobiles.

The company has six units like this.

They have a staff of 12 to 15, plus a large contingent of casual workers. â&#x20AC;&#x153;We utilize provincial services staff as casual, people who have seen real medical trauma situations and continue to.â&#x20AC;? he said. â&#x20AC;&#x153;You donâ&#x20AC;&#x2122;t go to industrial for experience.â&#x20AC;?

Industrial ambulance work does provide a change of pace for their employees, however. Many are municipal or provincial emergency services workers, or used

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to be. â&#x20AC;&#x153;I work tonight,â&#x20AC;?

Monette noted.

A large portion of their work to this point has been mining, both active mines and in exploration. The oilfield in a recent expansion. â&#x20AC;&#x153;We go where the demand is. Mining and exploration has been busy. Now weâ&#x20AC;&#x2122;re doing our next big push,â&#x20AC;?

Monette said.

Ross added, â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re bringing our A game, not just an AED, but a Physio Control LIFEPAK 12 or 15.â&#x20AC;?

Thatâ&#x20AC;&#x2122;s a professional-level heart monitor and defibrillator.

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B18

PIPELINE NEWS June 2014

New ownership but same management for Classic Vacuum Truck Redvers â&#x20AC;&#x201C; Classic Vacuum Truck of Alida has had a recent change in ownership, but not management.

The company had several shiny units on display at the Redvers Oil Showcase May 8 and 9. Classic Vacuum established a shop in

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Redvers several years ago after winning a property at a previous show.

Curtis Construction of Regina, partnered with Westward Partners of Seattle, closed the deal on Feb. 10, 2014.

Curtis Construction was initially acquired by

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Westward last August. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s hard to let go,â&#x20AC;? said Randy McCannell, founder. â&#x20AC;&#x153;The name is staying the same.â&#x20AC;?

The arrangement was accomplished through accounting firm MNP, which specializes in successor planning as part of its work. Theyâ&#x20AC;&#x2122;ve accomplished several similar buyouts in recent years with other southeast Saskatchewan

570 +20(6

oilfield services firms.

In this case, Westward Partners was looking for new partners in the area, and the McCannells were looking to sell. â&#x20AC;&#x153;We threw it out at them (MNP) and they went out and looked for potential buyers,â&#x20AC;? said McCannell, who is 56-years-old and has run the business with his wife Tammy.

Asked why they

chose to sell, he replied, â&#x20AC;&#x153;Opportunity doesnâ&#x20AC;&#x2122;t come around every day.

The group that approached us were awesome fellas. Tammyâ&#x20AC;&#x2122;s and my concern was we didnâ&#x20AC;&#x2122;t want any changes.

They wanted to keep it running like we have for the last 15 years. It fits with everyone, and maybe thereâ&#x20AC;&#x2122;s potential to make it bigger.â&#x20AC;? ɸ Page B19

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PIPELINE NEWS June 2014

B19

Tim Erickson climbed on the business end of a recentlyacquired hydrovac operated by Classic Vacuum Truck.

was no different, and three months ago, the hydrovac and pressure truck were added as new capabilities. â&#x20AC;&#x153;We get a lot of calls for them,â&#x20AC;? McCannell said.

One semi-trailer the company operated is rigged up for salt water and oil, and has a hydrogen sulfide scrubber onboard for Éş Page B18 As is typical with such succession plans, McCannell has a management contract that will run for at least two years, and will likely go much longer than that.

Tim Erickson, who owns the three steamers leased on with Classic, said, â&#x20AC;&#x153;Iâ&#x20AC;&#x2122;ll probably be around forever.â&#x20AC;?

Erickson fills in wherever McCannell

steps back. He will maintain the ownership of his steamers.

As for Curtis Construction, their focus is the pipe and steel handling at the Evraz steel mill in Regina, along with a few other things. â&#x20AC;&#x153;Our employees handle the coils and pipe,â&#x20AC;? said Dale Curtis.

Classic Vacuum Truck has 22 people on staff, including eight leased operators. They

have eight vac trucks, one of which is a tridrive, and others pull a trailer in a configuration known as a quad-axle.

Thereâ&#x20AC;&#x2122;s one fire truck, one hydrovac, one pressure truck and four freshwater trucks (two semis, two body-jobs).

These buyouts have typically led to expansions due to the deeper pockets involved in being part of a larger operation. This case

emptying treaters, tanks, and transfers of oil and water. The vac trucks already have to use a third-party scrubber.

Erickson said, â&#x20AC;&#x153;This will be rigged up with the scrubber so thereâ&#x20AC;&#x2122;s no need for a thirdparty scrubber when we get there.â&#x20AC;? â&#x20AC;&#x153;It will speed up the job,â&#x20AC;? McCannell added.

Temporary/Permanent Chainlink Fence Ĺł Free standing panels give protection and security around pump jacks, tanks, flair stacks, headers, abandoned wells, etc. Ĺł Easy to set up and dismantel with clamps allows you to move panels from job to job. Ĺł Support posts every 15â&#x20AC;&#x2122; add strength for withstanding high winds. Ĺł Lockable walk-in gate on each compound to keep out people, animals, snowmobiles and quads where higher safety and security is needed. Ĺł Panels can be custom made to fit any size of compound. Ĺł Does not need to be anchored into ground.

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B20

PIPELINE NEWS June 2014

Enough room and people for quick service turnarounds Regina â&#x20AC;&#x201C; As a trucker, when your wheels arenâ&#x20AC;&#x2122;t turning, youâ&#x20AC;&#x2122;re not making money.

Steve Karch is the service manager on the Mack Trucks side of Redhead Equipmentâ&#x20AC;&#x2122;s new Regina shop. The other end of the building looks after construction equipment. The Regina location is the one Redhead location that does not handle the agriculture side of the business, since another dealer carries Case IH equipment for the area.

Instead of separate wings under one roof, Redhead had operated in two separate buildings until last September. The consolidation led to one-stop

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306-482-3558

shopping, Karch noted.

A lot of clients buy trucks and trailers in addition to their heavy equipment, for instance, so itâ&#x20AC;&#x2122;s convenient to have the same drop-off point for service.

Each shop area in the new building has 30,000 square feet. In their old digs, they had 18,000 sq. ft. for trucks and trailers, and construction equipment had even less. But have they filled up this new space? â&#x20AC;&#x153;Oh yeah,â&#x20AC;? Karch replied. â&#x20AC;&#x153;This past winter, at -30 for weeks on end, it was full.â&#x20AC;?

The building was constructed such that additions could be added on each side, if needed. â&#x20AC;&#x153;I have 16 technicians and 30 bays. This gives me the space and ability to get trucks in the same day, as opposed to a week,â&#x20AC;? he said.

Karch also noted something very rarely said in a service department. As of late April, when it comes to technicians, he said, â&#x20AC;&#x153;Right now, I have enough.â&#x20AC;? â&#x20AC;&#x153;We run a very organized shop. Iâ&#x20AC;&#x2122;m booking for tomorrow, not 10 days down the road. We afford the trucker minimal downtime, with service either the same day or next day.â&#x20AC;?

One example he provided was a driver who had to get to Kamloops, B.C. He had a driveability issue, and didnâ&#x20AC;&#x2122;t know if he could make it to Calgary or get into there for services. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;ll get him in this afternoon and have him away tomorrow in this case,â&#x20AC;? Karch said. ɸ Page B21

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PIPELINE NEWS June 2014 ɺ Page B20 “We have guys calling saying, ‘I’m five minutes away.’ They know we’ll have a tech for them.”

They work on all brands, he noted. Parts runners will pick up parts from Kenworth, Freightliner and the like as needed.

When it comes to parts, they have a pretty good “fill rate,” where regularly used parts are usually in stock unless Mack itself is short.

Each shop, construction equipment and trucks, has specialized equipment, including cranes and oil change pits. The construction equipment side needs bigger bays and doors, for instance, and their iron is usually in the shop longer. Having distinct service areas for each type of equipment makes it easier to manage. Generally they don’t pull staff across from one side to the other, but it is possible if needed.

The biggest change with the new shop is not cranes, however, but computers. Each technician has their own computer, with a laptop at their workstation or toolbox. Computers are integral to service these days.

“The techs now order parts by email instead of walking to the parts counter,” Karch said. “My guys can plug into a truck and get codes and do diagnostics. Ninety per cent of the time, it’s diagnosed through guided diagnostics.”

Two techs have been added within the past year, one from the United Kingdom, another is local. The U.K. import was the result of another person, also from the U.K., who came two years ago.

Only two of the technicians are not local, but they are permanent residents. “I don’t have any temporary foreign workers here. It is full-time, permanent work,” he said.

“If a qualified technician needs a job, they will always be considered. I need at least third, fourth year apprentice experience. Out of the 16 technicians, at least half are journeymen.”

B21

A modest proposal Steve Karch, service manager for Mack Trucks at Redhead Equipment in Regina, is also president of the Commercial Vehicle Repairers Association of Saskatchewan. In both roles, he’s put a lot of thought into training programs.

Karch put forward a proposal several years ago where he would like to see formal apprenticeship training take place at dealerships, as opposed to SIAST campuses. Dealerships are factory-trained, and use the latest equipment, whereas that’s not necessarily the case on campus.

He noted one tech who works on diesels spent a significant portion of his classroom time dealing with gasoline engines. Online, instructor-led training would also take place, he suggested.

Karch acknowledged that such a regime

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would tend to be brand specific, but the knowledge is transferable. All diesel engines have injectors and pistons, for example.

Going to school is a financial hardship for all involved. For the employer, they lose the worker.

For the apprentice, it takes so long for Employment Insurance to kick in; they often don’t get their first cheque until they are back at work.

On top of that, apprentices usually have to go to school away from home, and maintain two residences during that time on half their income, at best.

“They’re starving for two months,” Karch said.

Under his plan, he said, “I don’t lose the technician, I don’t lose the revenue, and they don’t lose the income.”

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PIPELINE NEWS June 2014

PIPELINE NEWS June 2014

B23

Workplace charity walk raises $6,500

ZĹ˝Ä? DÄ?'ĆľĹ?Ć&#x152;Ä&#x17E;Í&#x2022; Ä&#x201A;Ĺś Ĺ˝Ć&#x2030;Ä&#x17E;Ć&#x152;Ä&#x201A;Ć&#x; ŽŜĆ? ĹľÄ&#x201A;ĹśÄ&#x201A;Ĺ?Ä&#x17E;Ć&#x152; Ä&#x201A;Ć&#x161; dÄ&#x201A;Ć&#x152;Ĺ?Ä&#x17E;Ć&#x161; ^Ä&#x201A;ĨÄ&#x17E;Ć&#x161;Ç&#x2021; ^Ä&#x17E;Ć&#x152;Ç&#x20AC;Ĺ?Ä?Ä&#x17E;Ć? Ĺ?Ĺś >ĹŻĹ˝Ç&#x2021;Ä&#x161;ĹľĹ?ĹśĆ?Ć&#x161;Ä&#x17E;Ć&#x152; Ć&#x152;Ä&#x17E;Ä&#x201A;Ä&#x161;Ć? Ć&#x161;Ĺ&#x161;Ä&#x17E; Ć&#x2030;Ĺ˝Ć?Ć&#x161;Ä&#x17E;Ć&#x152; Ć&#x152;Ä&#x17E;ĹľÄ&#x17E;ĹľÄ?Ä&#x17E;Ć&#x152;Ĺ?ĹśĹ? Ć&#x161;Ĺ&#x161;Ä&#x17E; ĹŻĹ?ĨÄ&#x17E; ŽĨ ĎŽĎ´ Ç&#x2021;Ä&#x17E;Ä&#x201A;Ć&#x152;Ͳ ŽůÄ&#x161; <Ä&#x201A;ĹśÄ&#x17E; dĹ&#x161;Ĺ˝Ć&#x152;ĹśÄ&#x17E; Ç Ĺ&#x161;Ĺ˝ Ç Ä&#x201A;Ć? ĹŹĹ?ĹŻĹŻÄ&#x17E;Ä&#x161; ŽŜ KÄ?Ć&#x161;Í&#x2DC; Ď­Ď´Í&#x2022; ĎŽĎŹĎ­Ď­ ĨĆ&#x152;Žž Ä&#x201A; Ä?ŽŜĆ?Ć&#x161;Ć&#x152;ĆľÄ?Ć&#x; ŽŜ Ć?Ĺ?Ć&#x161;Ä&#x17E; Ä&#x201A;Ä?Ä?Ĺ?Ä&#x161;Ä&#x17E;ĹśĆ&#x161;Í&#x2DC; dĹ&#x161;Ä&#x17E; ĹľÄ&#x17E;žŽĆ&#x152;Ç&#x2021; ĹŻÄ&#x201A;ĹśÄ&#x17E; ŽĨ Ć?Ĺ?Ĺ?ĹśĆ? Ç Ä&#x201A;Ć? Ć&#x2030;ĹŻÄ&#x201A;Ä?Ä&#x17E;Ä&#x161; Ä&#x201A;Ć&#x161; Ć&#x161;Ĺ&#x161;Ä&#x17E; Ć?Ć&#x161;Ä&#x201A;Ć&#x152;Ć&#x161; ŽĨ Ć&#x161;Ĺ&#x161;Ä&#x17E; Ĺ?ĹśÄ&#x201A;ĆľĹ?ĆľĆ&#x152;Ä&#x201A;ĹŻ ÄŽ Ç&#x20AC;Ä&#x17E; ĹŹĹ?ůŽžÄ&#x17E;Ć&#x161;Ć&#x152;Ä&#x17E; ^Ć&#x161;Ä&#x17E;Ć&#x2030;Ć? ĨŽĆ&#x152; >Ĺ?ĨÄ&#x17E; Ç Ä&#x201A;ĹŻĹŹ Ĺ?Ĺś >ĹŻĹ˝Ç&#x2021;Ä&#x161;ĹľĹ?ĹśĆ?Ć&#x161;Ä&#x17E;Ć&#x152; Ĺ&#x161;Ä&#x17E;ĹŻÄ&#x161; ŽŜ DÄ&#x201A;Ç&#x2021; Ď° Ć&#x161;Ĺ˝ Ć?ĆľĆ&#x2030;Ć&#x2030;Ĺ˝Ć&#x152;Ć&#x161; ĨÄ&#x201A;ĹľĹ?ĹŻĹ?Ä&#x17E;Ć? ŽĨ Ç Ĺ˝Ć&#x152;ĹŹĆ&#x2030;ĹŻÄ&#x201A;Ä?Ä&#x17E; Ć&#x161;Ć&#x152;Ä&#x201A;Ĺ?Ä&#x17E;Ä&#x161;Ç&#x2021;Í&#x2DC;

Â&#x201E; By Geoff Lee Lloydminster â&#x20AC;&#x201C; The inaugural Steps for Life walk at Bud Miller All Seasons Park in Lloydminster raised $6,500 for families suffering from a workplace tragedy, topping the goal of $5,000.

Only fifty walkers out of a hoped for 100 braved a cold May 4 morning to complete the five lap stroll around Bud Miller Lake, but many more walked in spirit with their donations. â&#x20AC;&#x153;Overall, I consider it a success and we had a great set of volunteers helping out,â&#x20AC;? said lead organizer Jennifer Keach, an HSE specialist with Schlumberger, in an e-mail. â&#x20AC;&#x153;We are booking the same venue for next year.â&#x20AC;?

Steps for Life is traditionally held in communities across Canada on the first Sunday in May as part of North American Occupational Safety and Health Week held this year May 4-10.

The Steps for Life walk is the major fundraiser for Treads of Life, a national charity that supports families of workplace tragedy.

Threads of Life volunteer and speaker Rachel Rauhut came to Lloydminster to share her personal workplace tragedy with the crowd of walkers.

Rauhut was a young teenager when her aunt Marlene was killed on a highway while working as a highway maintenance worker.

Today, Rauhut is a labourer for Newforce Energy Services in Drayton Valley.

She spoke emotionally about the ripple effects of a workplace tragedy,

which extend well beyond the immediate family.

Keach also spoke about the need to support the cause before turning the microphone over to Lloydminster Mayor Rob Saunders who cut the ribbon to officially start the walk.

More than 5,000 walkers participated in community walks in 2013 raising more than $595,000 for families hurting from a workplace trauma.

Each walk features a memory lane of signs remembering and honouring victims of workplace tragedies.

Proceeds from the Lloydminster walk will go directly to Threads of Life family support programs and services.

The local walk was hosted by the Lakeland Regional Safety Committee and an organizing group headed by Keach, Nicky Truhn from the City of Lloydminster and Dorothy Carson, executive director the Lloydminster Construction Association.

Helping to make the event a success were ATCO Electric, LML Industrial, Tartan Canada, Schlumberger, Target Safety Services, Ram Printing and Tarpon Energy Services.

The list of contributors also includes Scorpion Cycle/Lethal Motorsports, Lloydminster Ambulance, Bexson Construction, the City of Lloydminster, Tim Hortons, Lloydminster Water World and the Lions club. dÇ&#x2021;ĹŻÄ&#x17E;Ć&#x152; Ć&#x152;ŽžÄ&#x201A;Ć&#x152;Ć&#x; Ä&#x17E; ĨĆ&#x152;Žž >Î&#x2DC;> KĹ?Ĺ&#x2021; Ĺ?Ä&#x17E;ĹŻÄ&#x161; ŽŜĆ?Ć&#x161;Ć&#x152;ĆľÄ?Ͳ Ć&#x; ŽŜ ĆľĆ?Ä&#x17E;Ć? Ĺ&#x161;Ä&#x201A;ĹśÄ&#x161; ĹŻÄ&#x201A;ĹśĹ?ĆľÄ&#x201A;Ĺ?Ä&#x17E; Ć&#x161;Ĺ˝ Ĺ&#x161;Ä&#x17E;ĹŻĆ&#x2030; Ć&#x2030;Ĺ˝Ć?Ĺ?Ć&#x; ŽŜ Ĺ&#x161;Ĺ?Ć? Ä&#x161;Ĺ˝Ĺ? dĆ&#x152;Ĺ?Ç&#x2020;Ĺ?Ä&#x17E; ĨŽĆ&#x152; Ä&#x201A; Ć&#x2030;Ĺ&#x161;Ĺ˝Ć&#x161;Ĺ˝ Ć?Ĺ&#x161;Ĺ˝Ç Ĺ?ĹśĹ? Ĺ&#x161;Ä&#x17E;Ć&#x152; Ç&#x2021;Ä&#x17E;ůͲ ĹŻĹ˝Ç ^Ć&#x161;Ä&#x17E;Ć&#x2030;Ć? ĨŽĆ&#x152; >Ĺ?ĨÄ&#x17E; Ć&#x152;Ĺ?Ä?Ä?ŽŜ Ç Ĺ&#x161;Ĺ?ĹŻÄ&#x17E; dÇ&#x2021;ĹŻÄ&#x17E;Ć&#x152;Í&#x203A;Ć? Ç Ĺ?ĨÄ&#x17E;Í&#x2022; <Ć&#x152;Ç&#x2021;Ć?Ć&#x; Í&#x2022; Ç Ĺ&#x161;Ĺ˝ Ä&#x201A;ĹŻĆ?Ĺ˝ Ç Ĺ˝Ć&#x152;ĹŹĆ? Ä&#x201A;Ć&#x161; >Î&#x2DC;>Í&#x2022; Ć&#x161;ĆľĹ?Ć? ŽŜ Ć&#x161;Ĺ&#x161;Ä&#x17E; ĹŻÄ&#x17E;Ä&#x201A;Ć?Ĺ&#x161;Í&#x2DC;

ZÄ&#x201A;Ä?Ĺ&#x161;Ä&#x17E;ĹŻ ZÄ&#x201A;ĆľĹ&#x161;ĆľĆ&#x161;Í&#x2022; Ä&#x201A; žŽĆ&#x; Ç&#x20AC;Ä&#x201A;Ć&#x; ŽŜÄ&#x201A;ĹŻ Ć?Ć&#x2030;Ä&#x17E;Ä&#x201A;ĹŹÄ&#x17E;Ć&#x152; Ä?Ä&#x201A;ĹľÄ&#x17E; Ć&#x161;Ĺ˝ >ĹŻĹ˝Ç&#x2021;Ä&#x161;ĹľĹ?ĹśĆ?Ć&#x161;Ä&#x17E;Ć&#x152; Ć&#x161;Ĺ˝ Ć?Ĺ&#x161;Ä&#x201A;Ć&#x152;Ä&#x17E; Ĺ&#x161;Ä&#x17E;Ć&#x152; Ć&#x2030;Ä&#x17E;Ć&#x152;Ć?ŽŜÄ&#x201A;ĹŻ Ç Ĺ˝Ć&#x152;ĹŹĆ&#x2030;ĹŻÄ&#x201A;Ä?Ä&#x17E; Ć&#x161;Ć&#x152;Ä&#x201A;Ĺ?Ä&#x17E;Ä&#x161;Ç&#x2021; Ć?Ć&#x161;Ĺ˝Ć&#x152;Ç&#x2021; Ä&#x161;ĆľĆ&#x152;Ĺ?ĹśĹ? Ć&#x161;Ĺ&#x161;Ä&#x17E; Ĺ˝Ć&#x2030;Ä&#x17E;ĹśĹ?ĹśĹ? Ä?Ä&#x17E;Ć&#x152;Ä&#x17E;žŽŜĹ?Ä&#x17E;Ć? ŽĨ Ć&#x161;Ĺ&#x161;Ä&#x17E; ^Ć&#x161;Ä&#x17E;Ć&#x2030;Ć? ĨŽĆ&#x152; >Ĺ?ĨÄ&#x17E; Ç Ä&#x201A;ĹŻĹŹ Ä&#x201A;Ć&#x152;ŽƾŜÄ&#x161; ĆľÄ&#x161; DĹ?ĹŻĹŻÄ&#x17E;Ć&#x152; ĹŻĹŻ ^Ä&#x17E;Ä&#x201A;Ć?ŽŜĆ? WÄ&#x201A;Ć&#x152;ĹŹ ŽŜ DÄ&#x201A;Ç&#x2021; Ď°Í&#x2DC;

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0 WR KHOS 50V À [ RLO URDGV Lloydminster – After three days of rain in late April, with road bans in effect, Tim McMillan, minister responsible for Energy and Resources, was primed to talk about funding relief for rural municipal roads.

McMillan lives in the RM of Eldon near Maidstone and is an eye witness to the effect wet spring conditions and heavy haul oilfield traffic have on country roads.

“I think the prolonged wet spring is certainly something that is a challenge for everyone – for the municipalities and the highway as well to keep them in shape and keep them strong and durable,” he said from his Lloydminster constituency.

“If it would dry up and the roads would harden up, everybody would be better off.”

When it comes to year-round oilfield traffic in the RMs, McMillan said he sees “a substantial amount right past my front door.”

He applauds the Municipal Roads for the Economy Program (MREP) that is providing $25.5 million in grants to build and repair municipal roads, bridges and culverts as oil haul traffic increases.

“I know the Municipal Roads for the Economy Program is a very important one in this year’s budget in this region and across the province where we see the types of oil growth that we have,” said McMillan.

“Just the nature of this oilfield – flowlines can be utilized on lighter oil and water – but on heavy oil we see the bulk of it being carried by tankers.

“That certainly has an effect on our highway system, but it also very much has an effect on the rural municipalities.

“This funding allows them to keep up their infrastructure needs as well.”

The MREP funds include $9.7 million for 19 heavy haul and high volume construction projects in the province and $7.3 million to create more primary weight heavy haul corridors.

Another $7.7 million in grants is available for bridge and culverts projects.

“Most of the RMs in this area that have heavy oilfield activity are accessing this money this year including the RM of Frenchmen Butte, the RM of Eldon, Wilton and Britannia,” said McMillan.

“The money is specifically targeted for the types of oil that we have here and is one that is well known and well accessed by local municipalities.”

MREP is administered by the Saskatchewan Association of Rural Municipalities. Grants cover up to 50 percent of the cost of road projects and 30 to 90 percent for bridge and culvert work costs.

McMillan said rural municipal road maintenance is costly and noted RMs can raise additional money through their taxing authority.

“In general, they go with a user-pay model.

They use their taxing tools to put the appropriate amount of tax on residential, agriculture and on industry,” said McMillan.

“These grant programs are another tool on top of that for the RMs to keep up with the growth that we are seeing and the industrial development that we are seeing.”

McMillan said he is seeing a couple of different trends in the oilfield working for and against rural road wear and tear.

“We are seeing a lot of investment and a lot of oil development which means more traffic,” he said.

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a corresponding amount of road traffic growth.

“So I think we’re seeing a couple of things going on right now that are helpful and also putting more pressure on the roads. I don’t know exactly where the sawoff is,” said McMillan.

He added that when the roads are mushy as they have been this spring from frost heaves and rain, not a lot of oilfield work can get done.

“I was driving in from the farm this morning.

This is quite a yard full of rigs just over by Heartland Livestock. I haven’t seen it that full of rigs in awhile,” he said in an April 25 interview.

“This spring with the moisture we are getting in the last few days is going to make all highways and roads challenging to keep in shape.”

The province plans to spend $664.5 million in its 2014 budget to build, operate and maintain the 26,000 km provincial highway system including $118 million for rural highway upgrades across the province.

In 2013, the province increased road maintenance rates the RMs can charge haulers for the first The province plans to spend $664.5 million to build and maintain provincial highways from its 2014 budget. Last time since 1999, while it moves toward rates based summer Rev Energy crews replaced water mains on the on actual costs.

“The rate was adjusted last year that brings it ŵĂŝŶ ƚŚŽƌŽƵŐŚĨĂƌĞ ƚŚƌŽƵŐŚ <ĞƌƌŽďĞƌƚ ŝŶ ƉƌĞƉĂƌĂƟ ŽŶ ĨŽƌ paving in 2015 to a primary weight standard. Pictured is more in line with the costs. There are lot of heavy trackhoe operator Dwayne Allen building up a pile of dirt road uses beyond the oilfield that this affects as ĨƌŽŵ ĂŶ ĞdžĐĂǀĂƟ ŽŶ͘ File photo well,” said McMillan citing gravel hauling as an example.

On the plus side, he noted Husky’s thermal “I think it’s a general good policy that each user projects and “pad drilling” enable larger volumes of class would fund the road use and road damage that oil and water to be flowlined and produced without that class in general would cause.”

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PIPELINE NEWS June 2014

Bexson leads design-build storage boom Â&#x201E; By Geoff Lee Lloydminster â&#x20AC;&#x201C; Bexson Construction Ltd. is tapping into a strong demand for pre-engineered metal buildings in Lloydminster in 2014 driven by oil company expansions and startups.

The local family owned company has several metal building projects on the go for oilfield clients and other construction opportunities as seasonal building shifts into high gear.

Cody Bexson, one of several company owners wears multiple tasks hats including general manager and project estimator.

He told Pipeline News in late April that 2014 is shaping up to be another banner year for the company in the Lloydminster area. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s going to be much the same as last year if not better than last year,â&#x20AC;? he said noting the company will also be renovating Grace United Church and a local hardware store. â&#x20AC;&#x153;So itâ&#x20AC;&#x2122;s a little bit of a switch from what we normally do sticking with the oilfield,â&#x20AC;? said Bexson, who is especially pleased to be doing the work for the church. â&#x20AC;&#x153;We look forward to a project like that, that is in the community and helps the community.â&#x20AC;?

Bexson is also recognizes his company needs to build a bigger head office for itself in the coming months

with little room left for growth at their current location.

Bexson Construction specializes in the design-build of pre-engineered metal buildings for manufacturing, commercial and institutional uses with the heavy oil sector being the main growth driver. â&#x20AC;&#x153;I think the oilfield is picking up again and 2014 is going to be another banner year by the looks of it for the oilfield,â&#x20AC;? said Bexson. â&#x20AC;&#x153;That just all bleeds its way down to us to try to help these companies that are expanding to keep growing.â&#x20AC;?

Bexsonâ&#x20AC;&#x2122;s own growth is benefiting from the rapid expansion of industrial parks in and around the city that are quickly filling up with new and expanding oil and gas and agricultural buildings. â&#x20AC;&#x153;Probably about 90 per cent of what you see out there weâ&#x20AC;&#x2122;ve done in the past,â&#x20AC;? said Bexson. â&#x20AC;&#x153;The growth in our company the last few years, especially in the last five years â&#x20AC;&#x201C; weâ&#x20AC;&#x2122;ve seen things almost double as far as the size and the amount of crews that weâ&#x20AC;&#x2122;ve held as a year-long basis. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;ve been in operation since 1992, but especially in the last five years, itâ&#x20AC;&#x2122;s got a lot busier. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s mostly the oilfield growth â&#x20AC;&#x201C; oilfield companies hauling oil, a lot of truck storages and chemicals at places like Nalco Champion as well as ag-

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riculture â&#x20AC;&#x201C; Agland and other dealers like that,â&#x20AC;? said Bexson. â&#x20AC;&#x153;We do pretty much everything right from schools to a little bit of the civil â&#x20AC;&#x201C; mostly oilfield buildings though.â&#x20AC;?

Bexson said most oilfield companies these days mostly want storage to protect trucks and equipment from the elements. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s a truck town. When youâ&#x20AC;&#x2122;ve got oil haulers and coil tubing units and vac trucks â&#x20AC;&#x201C; itâ&#x20AC;&#x2122;s just endless storage to put these trucks away in

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the winter and make sure theyâ&#x20AC;&#x2122;re not outside freezing,â&#x20AC;? said Bexson. â&#x20AC;&#x153;So weâ&#x20AC;&#x2122;ve seen a lot of that.â&#x20AC;?

Elite Mechanical, C.E. Franklin Ltd., Corlac Industries and Sandpiper Truck Services are just some of the many oilfield businesses in Lloydminster housed in Bexsonâ&#x20AC;&#x2122;s preengineered buildings shown on their website project gallery. â&#x20AC;&#x153;Pre-engineered metal buildings are kind of our niche. Itâ&#x20AC;&#x2122;s definitely an area where we are able to keep costs down,â&#x20AC;? said Bexson. ɸ Page B27

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PIPELINE NEWS June 2014

ĞdžƐŽŶ ŽŶƐƚƌƵĐƟ ŽŶ ŚĂƐ ŝƚƐ ŽǁŶ ƐƚƌƵĐƚƵƌĂů ĂŶĚ ŐƌĂĚĞ ďĞĂŵ ĐƌĞǁƐ ƚŽ ŚĞůƉ ŝƚ ŵĞĞƚ ĚĞĂĚůŝŶĞƐ ĂƐ ƚŚĞ ĐŽŶƐƚƌƵĐƟ ŽŶ ŝŶĚƵƐƚƌLJ ŝŶ >ůŽLJĚŵŝŶƐƚĞƌ ĨĂĐĞƐ ůĂďŽƵƌ ƐŚŽƌƚĂŐĞƐ͘ dŚŝƐ Žĸ ĐĞ ĂŶĚ ƐŚŽƉ ďƵŝůĚŝŶŐ ďĞŝŶŐ ǁŽƌŬĞĚ ŽŶ ŝƐ ŽǁŶĞĚ ďLJ ZĂLJǀĂů ,ŽůĚŝŶŐƐ >ƚĚ͘ ĂŶĚ ǁŝůů ďĞ ƵƐĞĚ ďLJ ^ƚĂŶĐŚƵŬ dƌƵĐŬŝŶŐ͘

ɺ Page B26 “They are quick to put up. If you’re looking at doing wood structures, it would be way more expensive to use wood structures. Metal is way more cost effective.”

The company sources metal components from American Building Company in the United States in a partnership that dates back 15 years.

“We can definitely see some advantages from being with a metal building systems provider for a long time,” said Bexson.

“It’s a quick system and it just basically meets the needs of our oilfield partners as far as storage goes.”

Bexson led a tour of several new metal office and storage buildings under construction in the new Robinson Industrial Park with late spring weather causing some delays.

“Time lines are something that are definitely very difficult. We’ve had very different changes in weather the last two or three years from what we thought the norm was,” said Bexson.

“We’ve had some very early winters and some very late springs just like this year. Last year was much the same way, so it’s very hard to get a timeline nailed down.”

Bexson said it’s the same with labour shortages given the stepped up pace of overall construction in the city with building permits valued at more than $188 million in 2013.

For the first three winter months of 2014, permits totaled over $30.6 million.

Bexson is vice president of the Lloydminster Construction Association (LCA) whose member contractors and sub trades are also experiencing growth related issues in 2014.

run away. We’ll be here 15 years from now,” he said.

“If there are any issues we are always there to get things resolved.”

The design-build model that Bexson uses helps to save clients time and money by keeping all of the building plans and designs for mechanical and structural work in-house.

“We like to be very hands-on.

We’ve done enough of them that we know how they should be built and how to keep the costs as little as possible for the owner,” said Bexson.

“It’s very important to us that we are giving back as much as we can to the owner to give them the best building for their money.”

B27

Bexson Construction also likes to give back to the community as a supporter of everything from minor hockey and baseball to the Lloydminster Health Foundation and other causes.

“We are also big supporters of the heavy draft horse show at the Lloydminster Exhibition Grounds,” said Bexson.

“That’s something that’s dear to our hearts. As a family owned business our great, great grandfather was very involved with that so are a lot of other members.”

This year’s draft horse pull will take place during the Colonial Day Fair July 9-12.

“They are saying the exact same thing. They’re seen growth happening in 2014 as well,” he said, noting that comes along with labour shortages and lack of housing for employees.

“One of the biggest problems we are trying to overcome is housing.

There isn’t a house to be bought. There seems to almost more realtors than there are houses right now.

“The same with apartments; it’s hard to find an apartment. If you are not paying $20 an hour they can’t afford an apartment,” said Bexson speaking for the LCA. “We’ve lost, I bet you, four or five workers last year that had to move out of Lloydminster because they actually couldn’t afford to live here or find a home here.”

Bexson said his construction company hires its own structural and grade beam crews, but he figures they still only do about half of work that’s needed given the boom in building.

“We do sub out about half of it in both of those areas, but it definitely helps in the sense it controls what projects can get done a little faster when you have your own,” he said.

“You can never 100 per cent rely on a subtrade to come when you expect them to. They’ve got other clients as well, and it’s busy times.”

Local construction companies are also facing rising costs for steel and mechanical items such as furnaces and makeup units making it tougher to keep costs down.

Bexson says his company’s niche is its reputation in Lloydminster established by company founder and president Dwaine Bexson.

“We’ve been here for a long time.

People know that we are not here to

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B28

PIPELINE NEWS June 2014 TUSCANY’S MACKLIN SPARKY PROSPECT

Tuscany is buoyed by logs shows the similarity of the Spark zone on its holdings near Macklin and two analogous pools shown on the map being developed by Surge Energy. /ŵĂŐĞ ƐƵďŵŝƩ ĞĚ

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Calgary – Tuscany Energy Ltd is knocking on the door of the Sparky formation with its newly acquired 100 per cent working interest in 567 acres.

The acquired holdings adjacent to the company’s Macklin heavy oil pool include a producing natural gas well and rights to the Sparky.

Tuscany will now be able to supply its own gas for fuel to be used at its Macklin battery requirements.

With the acquisition Tuscany owns a 100 per cent working interest in approximately 1,400 acres of prospective oil bearing Sparky lands.

Tuscany’s primary focus remains the development of its heavy oil Dina pools in Macklin and Evesham, but it plans to drill up to 14 wells on its Sparky play in the second half of 2014.

In an April 30 update Tuscany reported it believes the Sparky zone in wells at Macklin appear to correlate to the Sparky pools recently drilled by Surge Energy in Alberta and may hold similar potential.

Logs from wells on the Macklin acreage indicate porosity and resistivity similar to vertical wells in Alberta.

Surge Energy successfully drilled two new net wells into the Sparky near Eye Hill Alberta and one net horizontal well in the Sparky near Provost Alberta in the first quarter of 2014.

Surge reported on April 8 that each of the new wells were producing at or above 180 type curve rates.

Spartan acquires Renegade’s light oil Calgary – Spartan Energy Corp. plans to focus on light oil opportunities in Western Canada and grow by acquisition, consolidation and the drill bit for the rest of 2014.

The Calgary based company is fresh from its $495 million purchase of Renegade Petroleum Ltd. on March 31 that included $168 million of net debt.

Spartan will spend the balance of their $74 capital program for 2014 developing their Mississippian assets in southeast Saskatchewan.

Their secondary target is the Viking light oil play in the Dodsland area of West Central Saskatchewan.

The company has plans to drill an additional 35 (30.9 net) horizontal wells targeting the Frobisher/Alida formation during 2014 plus nine fully owned wells targeting the Midale formation.

Spartan expects its 2014 budget to yield full year average production of 5,100 boepd (93 per cent oil and liquids) and exit production of 7,300

boepd (94 oil and liquids).

The company reported first quarter production in an April 16 update of approximately 6,600 boepd (93 per cent light oil), based on field production estimates.

Spartan was active in the first quarter of 2014, drilling a total of 19 (17.5 net) wells.

The total included three (2.7 net) vertical wells drilled in central Alberta targeting Detrital oil and 10 (9.5 net) horizontal wells drilled in West Central Saskatchewan for Viking oil.

An additional six (5.3 net) horizontal wells were drilled in southeast Saskatchewan targeting Mississippian oil prospects.

The now defunct Renegade ended 2013 with total production of 7,400 boepd.

Renegade’s core operations were light oil in the Viking play and conventional light oil in the Mississippian formation in various locations throughout southwestern Saskatchewan.

PIPELINE NEWS June 2014

B29

Badger Daylighting opens Lloydminster location Â&#x201E; By Geoff Lee Lloydminster â&#x20AC;&#x201C; Badger Daylighting Ltd. has re-established a base in Lloydminster, a community where it is eyeing double digit growth over the next couple of years with its hydrovac technology and services.

The Calgary-based company held a grand opening at their new Lloydminster location in April providing managers with an opportunity to talk about the companyâ&#x20AC;&#x2122;s operations and potential in the region. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s nice to be back in Lloydminster. Right now, weâ&#x20AC;&#x2122;re grown to five trucks and the potential seems to be a 10 to 12 truck operation,â&#x20AC;? said Nigel Spilman, regional manager for Western Canada north. â&#x20AC;&#x153;We got the shop for it now and have everything set up. We are ready to go to work so weâ&#x20AC;&#x2122;re pretty pumped at where we are going to be in the future.â&#x20AC;?

Badger uses its own hydrovacs built in Red Deer to provide non-destructive excavation to customers in the oil and gas, power, municipal, transportation, industrial and commercial construction sectors.

The Badger hydrovac uses a pressurized water stream to liquefy the soil cover, which is then removed with a powerful vacuum system and deposited into a storage tank housed on the truck. â&#x20AC;&#x153;We service all aspects of the hydrovacing spectrum,â&#x20AC;? said area manager Corey Hoben. â&#x20AC;&#x153;We do oil and gas, we do municipalities, utilities â&#x20AC;&#x201C; we do power poles, line locates, trenching pretty much anything you can think of we can do it.â&#x20AC;?

The phones have been ringing off the hook since Hoben and his staff began moving into the new 9,100 sq. ft. building in the Robinson Industrial Park last November. â&#x20AC;&#x153;Lloyd is expanding and it doesnâ&#x20AC;&#x2122;t seem to be stopping. The growth here is unlimited. We can pretty much do what anyone needs â&#x20AC;&#x201C; utilities, SaskPower â&#x20AC;&#x201C; Atco,â&#x20AC;? he said.

Hoben currently manages a local fleet of four tri-axle Badger hydrovac and one single axle truck from the Lloydminster shop with another tri-axle unit on its way. â&#x20AC;&#x153;Our tri-axles are more for larger projects extensive trenching and stuff like that,â&#x20AC;? explained Hoben. â&#x20AC;&#x153;Single axles can take care of the smaller jobs. Single axles tend to be a little more versatile. They can get into tighter or restricted areas. â&#x20AC;&#x153;With each truck comes a variety of different tools that we use to do these projects safely. ɸ Page B30

Ĺ˝Ć&#x152;Ä&#x17E;Ç&#x2021; ,Ĺ˝Ä?Ä&#x17E;ĹśÍ&#x2022; Ä&#x201A;Ć&#x152;Ä&#x17E;Ä&#x201A; ĹľÄ&#x201A;ĹśÄ&#x201A;Ĺ?Ä&#x17E;Ć&#x152; Ä&#x201A;Ć&#x161; Ä&#x201A;Ä&#x161;Ĺ?Ä&#x17E;Ć&#x152; Ä&#x201A;Ç&#x2021;ĹŻĹ?Ĺ?Ĺ&#x161;Ć&#x;ĹśĹ?Í&#x203A;Ć? ĹśÄ&#x17E;Ç >ĹŻĹ˝Ç&#x2021;Ä&#x161;ĹľĹ?ĹśĆ?Ć&#x161;Ä&#x17E;Ć&#x152; Ć?Ĺ&#x161;Ĺ˝Ć&#x2030; Ĺ?Ć&#x152;Ĺ?Ć&#x2030;Ć? Ć&#x161;Ĺ&#x161;Ä&#x17E; Ç&#x20AC;Ä&#x201A;Ä? Ĺ&#x161;Ĺ˝Ć?Ä&#x17E; ŽĨ Ć&#x161;Ĺ&#x161;Ĺ?Ć? Ć?Ĺ?ĹśĹ?ĹŻÄ&#x17E; Ä&#x201A;Ç&#x2020;ĹŻÄ&#x17E; Ĺ&#x161;Ç&#x2021;Ä&#x161;Ć&#x152;Ĺ˝Ç&#x20AC;Ä&#x201A;Ä? ĹľÄ&#x201A;ŜƾĨÄ&#x201A;Ä?Ć&#x161;ĆľĆ&#x152;Ä&#x17E;Ä&#x161; Ä?Ç&#x2021; Ć&#x161;Ĺ&#x161;Ä&#x17E; Ä?ŽžĆ&#x2030;Ä&#x201A;ĹśÇ&#x2021; Ĺ?Ĺś ZÄ&#x17E;Ä&#x161; Deer. WĹ&#x161;Ĺ˝Ć&#x161;Ĺ˝Ć? Ä?Ç&#x2021; 'Ä&#x17E;Žč >Ä&#x17E;Ä&#x17E;

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PIPELINE NEWS June 2014

Badger builds its own hydrovacs in Red Deer Éş Page B29 â&#x20AC;&#x153;The nice thing about Badger is we build own hydrovacs so we do quality control right from the very first nut until she rolls off the assembly line. â&#x20AC;&#x153;We build them ourselves so we know the ins and outs of these trucks.â&#x20AC;?

Hydrovacing applications at Badger include line exposing or daylighting, pole and piling holes, debris removal and tank cleanouts and shoring.

Badger modular shoring panels are used to ensure safe access to buried infrastructure by securing the walls of an excavated site. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s a very good application when it comes to fixing flanges and pipelines and stuff like that instead of having to dig up the whole area, trench it and slope it back,â&#x20AC;? said Hoben. â&#x20AC;&#x153;There can be incidents of cave-ins or sloughing, so itâ&#x20AC;&#x2122;s a safety application.â&#x20AC;?

The grand opening included a display of shoring applications and a burger barbecue where Kevin Meagher, regional sale manager for central Saskatchewan spoke about Badgerâ&#x20AC;&#x2122;s growth potential. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s exciting to have them back in town. They have real quality equipment. They have fantastic management. Theyâ&#x20AC;&#x2122;re back and I see double digit growth in the next couple of years for sure,â&#x20AC;? said Meagher. â&#x20AC;&#x153;They have always been here in a minor way, but they have made a commitment with this new shop. They really want to focus on Lloydminster and grow.â&#x20AC;?

Meagher is a new hire from Fieldtek that Badger purchased last November for $19.2 million as a wholly-owned subsidiary. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s been a very good situation. They took over Nov. 1. Fieldtek is run as a separate entity just

Ĺ˝Ć&#x152;Ä&#x17E;Ç&#x2021; ,Ĺ˝Ä?Ä&#x17E;ĹśÍ&#x2022; Ä&#x201A;Ć&#x152;Ä&#x17E;Ä&#x201A; ĹľÄ&#x201A;ĹśÄ&#x201A;Ĺ?Ä&#x17E;Ć&#x152; Ä&#x201A;Ć&#x161; Ä&#x201A;Ä&#x161;Ĺ?Ä&#x17E;Ć&#x152; Ä&#x201A;Ç&#x2021;ĹŻĹ?Ĺ?Ĺ&#x161;Ć&#x; ĹśĹ? Ĺ?Ĺś >ĹŻĹ˝Ç&#x2021;Ä&#x161;ĹľĹ?ĹśĆ?Ć&#x161;Ä&#x17E;Ć&#x152; Ç Ä&#x17E;ĹŻÄ?ŽžÄ&#x17E;Ä&#x161; ĹśÄ&#x17E;Ç Ä&#x201A;ĹśÄ&#x161; Ä&#x17E;Ç&#x2020;Ĺ?Ć?Ć&#x; ĹśĹ? Ä?ĆľĆ?Ć&#x161;ŽžÄ&#x17E;Ć&#x152;Ć? Ć&#x161;Ĺ˝ Ć&#x161;Ĺ&#x161;Ä&#x17E; Ĺ?Ć&#x152;Ä&#x201A;ĹśÄ&#x161; Ĺ˝Ć&#x2030;Ä&#x17E;ĹśĹ?ĹśĹ? ŽĨ Ć&#x161;Ĺ&#x161;Ä&#x17E;Ĺ?Ć&#x152; ĹśÄ&#x17E;Ç Ä¨Ä&#x201A;Ä?Ĺ?ĹŻĹ?Ć&#x161;Ç&#x2021; ŽŜ Ć&#x2030;Ć&#x152;Ĺ?ĹŻ Ď­ĎąÍ&#x2DC;

owned by Badger,â&#x20AC;? said Meagher. â&#x20AC;&#x153;We complement each other with Badger moving back into town with hydrovacs in a big way. We promote each and we work together but we are too separate entities.â&#x20AC;?

Fieldtek specializes on production tank cleaning and removal of waste oil and sand and business is good with a lot of production drilling going on in the region. â&#x20AC;&#x153;When youâ&#x20AC;&#x2122;re in the de-sanding business new

The ASTEC Advantage

drills are the important part. With lots of new drills thereâ&#x20AC;&#x2122;s lots of new de-sanding work to be done so Fieldtek is growing quite nicely,â&#x20AC;? said Meagher.

Meagher is also stoked about the sales potential for Badger from their Lloydminster facility. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s exciting to have them back in town. They have real quality equipment. They have fantastic management. Theyâ&#x20AC;&#x2122;re back and I see double digit growth in the next couple of years for sure,â&#x20AC;? he said. ɸ Page B31

The tickets gets you on-site.

The training gets you home.

At ASTEC, itâ&#x20AC;&#x2122;s not about the tickets, itâ&#x20AC;&#x2122;s about the training. We want your workers to receive the highest level of instruction. Students learn how to recognize hazards, prevent incidents and handle emergency situations.

Commitment

â&#x20AC;˘ Our public classes donâ&#x20AC;&#x2122;t have minimum enrollment quotes, so we wonâ&#x20AC;&#x2122;t cancel courses.

Credible Instructors

â&#x20AC;˘ We have field experienced instructors who understand the industry and relate to your workers.

Consistency

â&#x20AC;˘ Our trainers are internally audited. This means students receive the same top quality instruction no matter who teaches the class.

Client Specific

On our site or yours

â&#x20AC;˘ ASTEC will provide classes just for your people, so that start times and schedules can be customized to meet your needs. We guarantee your workers will receive the same level of training on your site as they do on ours.

Our mobile conďŹ ned space rescue simulator can be brought to your site.

Customization

â&#x20AC;˘ We can teach your specific orientations and tailor courses to include your companyâ&#x20AC;&#x2122;s codes of practice.

On-Line Courses Training courses offered as Public, On-site, Interactive, On-line, with instructor led Practical Component.

We offer real and virtual reality ďŹ ree xtinguisher training.

Head Office Lloydminster

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PIPELINE NEWS June 2014 Éş Page B30 Meagher spends of lot of his time in the Kindersley, Kerrobert and Rosetown areas and said, â&#x20AC;&#x153;Some of the horizontal stuff thatâ&#x20AC;&#x2122;s going on there now is just amazing. â&#x20AC;&#x153;I donâ&#x20AC;&#x2122;t think thereâ&#x20AC;&#x2122;s a quite spot in Western Canada right now. The Bakken field is good, the Kindersley, Kerrobert, Maple Creek is rolling. Grande Prairie is good â&#x20AC;&#x201C; everywhere. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s a good time to be in the oil industry in Western Canada.â&#x20AC;?

Corporately Badger is also enjoying exceptional success selling Badger hydrovacs into markets in the United States. â&#x20AC;&#x153;We build basically a truck a day in Red Deer and about 60 per cent of them go to the states,â&#x20AC;? said Spilman. â&#x20AC;&#x153;We figured that would be huge growth which it is but we are also continuing to grow in Canada and especially Western Canada. â&#x20AC;&#x153;In Western Canada it is oil and gas but there is big growth in utility sectors and construction and every else that comes along with a growing economy.â&#x20AC;?

Business is driven by environment and safety issues, pipelining and utilities and the dangers that are associated with that. â&#x20AC;&#x153;The safest way to dig with is with a hydrovac so the growth is coming

B31

because of that,â&#x20AC;? said Spilman, who noted Badgerâ&#x20AC;&#x2122;s hydrovacs are an industry leader. â&#x20AC;&#x153;We build our own because we figure nobody can build a better truck than ours. Our competitors will admit we build a darn good product. â&#x20AC;&#x153;This way by having engineers on staff we can change things up and adapt them to our needs and not worry about long lead times either. â&#x20AC;&#x153;We can pump a truck out in a day. We donâ&#x20AC;&#x2122;t have to wait for 18 months for a new truck so obviously itâ&#x20AC;&#x2122;s a huge part of our business.â&#x20AC;?

Spilman said he was excited to be at the grand opening of the Lloydminster shop and the permanent return of Badger to the area.

We had a franchise here before. The economy when it hit a crunch in 2008 it was a struggle on all of us especially on our franchise. For that reason they decided as a franchise to get out of the business,â&#x20AC;? he explained. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;ve have been back in business for about a year in Lloydminster. Weâ&#x20AC;&#x2122;ve got a nice shop. Weâ&#x20AC;&#x2122;ve got an area manager and sales people in place. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;ve got some great customers who have supported us the last 16 months or so. We are very excited about where itâ&#x20AC;&#x2122;s going to be at this time next year.â&#x20AC;?

think

TIME | QUALITY | COSTS Plainsman Manufacturing understands you want effective products that save time and money without compromising the quality you expect.

Please visit us at the Redvers & District Oil Showcase May 8 - 9 to learn more about how our products can suit your needs.

8305 Mcintyre Road Edmonton, Alberta T6E 5J7 T: (780) 496-9800 F (780) 463-9800

Nigel Spilman, regional manager for Badgerâ&#x20AC;&#x2122;s Western Canada north region stands by one of Badgerâ&#x20AC;&#x2122;s hydrovacs built in Red Deer. The company produces about one truck a Ä&#x161;Ä&#x201A;Ç&#x2021; Ç Ĺ?Ć&#x161;Ĺ&#x161; ϲϏ Ć&#x2030;Ä&#x17E;Ć&#x152; Ä?Ä&#x17E;ĹśĆ&#x161; ŽĨ Ć&#x161;Ĺ&#x161;Ä&#x17E; Ć&#x2030;Ć&#x152;Ĺ˝Ä&#x161;ĆľÄ?Ć&#x; ŽŜ Ä?Ä&#x17E;Ĺ?ĹśĹ? Ć?ŽůÄ&#x161; Ć&#x161;Ĺ˝ Ć&#x161;Ĺ&#x161;Ä&#x17E; hÍ&#x2DC;^Í&#x2DC; ĹľÄ&#x201A;Ć&#x152;ĹŹÄ&#x17E;Ć&#x161;Í&#x2DC; ^Ć&#x2030;Ĺ?ĹŻĹľÄ&#x201A;Ĺś Ç Ä&#x201A;Ć? ŽŜÄ&#x17E; ŽĨ Ć?Ä&#x17E;Ç&#x20AC;Ä&#x17E;Ć&#x152;Ä&#x201A;ĹŻ ĹľÄ&#x201A;ĹśÄ&#x201A;Ĺ?Ä&#x17E;Ć&#x152;Ć? Ç Ĺ&#x161;Ĺ˝ Ä&#x201A;ĆŠ Ä&#x17E;ĹśÄ&#x161;Ä&#x17E;Ä&#x161; Ć&#x161;Ĺ&#x161;Ä&#x17E; Ĺ?Ć&#x152;Ä&#x201A;ĹśÄ&#x161; Ĺ˝Ć&#x2030;Ä&#x17E;ĹśĹ?ĹśĹ? ŽĨ Ć&#x161;Ĺ&#x161;Ä&#x17E; ĹśÄ&#x17E;Ç >ĹŻĹ˝Ç&#x2021;Ä&#x161;ĹľĹ?ĹśĆ?Ć&#x161;Ä&#x17E;Ć&#x152; Ć?Ĺ&#x161;Ĺ˝Ć&#x2030; on April 16.

Bay 10, 4720 - 50 Street Lloydminster, Sask. S9V 0M7 T: (306) 825-6997 F: (306) 825-6608

Chemical Pumps & Accesories | Wellsite Production Downhole Accessories | Pipeline & Pigging Emergency Shutdown Systems www.plainsmanmfg.com | 1-877-448-0586

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B32

PIPELINE NEWS June 2014

Ask Me buttons pushed at Try-A-Trade Â&#x201E; By Geoff Lee

ĹŻÄ&#x201A;Ĺ?Ć&#x152; sÄ&#x201A;Ĺś Ć&#x152;Ä&#x17E;Ä?Ĺ&#x161;Ć&#x161; ĨĆ&#x152;Žž Ĺ?Ć?Ĺ&#x161;Ĺ˝Ć&#x2030; >ĹŻĹ˝Ç&#x2021;Ä&#x161; DĹ?Ä&#x161;Ä&#x161;ĹŻÄ&#x17E; ^Ä?Ĺ&#x161;ŽŽů Ć&#x2030;Ć&#x152;Ä&#x201A;Ä?Ć&#x; Ä?Ä&#x17E;Ć? ĆľĆ?Ĺ?ĹśĹ? Ä&#x201A;Ĺś Ä&#x201A;ĆľĆ&#x161;ŽžŽĆ&#x; Ç&#x20AC;Ä&#x17E; Ć?ŽůÄ&#x161;Ä&#x17E;Ć&#x152;Ͳ Ĺ?ĹśĹ? Ĺ?ƾŜ Ç Ĺ?Ć&#x161;Ĺ&#x161; Ä&#x201A; Ĺ&#x161;Ä&#x17E;ĹŻĆ&#x2030;Ĺ?ĹśĹ? Ĺ&#x161;Ä&#x201A;ĹśÄ&#x161; ĨĆ&#x152;Žž >Ä&#x201A;ĹŹÄ&#x17E;ĹŻÄ&#x201A;ĹśÄ&#x161; ŽůůÄ&#x17E;Ĺ?Ä&#x17E; Ĺ?ĹśĆ?Ć&#x161;Ć&#x152;ĆľÄ?Ć&#x161;Ĺ˝Ć&#x152; Ä&#x201A;Ç&#x20AC;Ä&#x17E; ,Ä&#x201A;Ć&#x152;Ä&#x201A;Ć?Ĺ?ƾŏÍ&#x2DC;

Lloydminster â&#x20AC;&#x201C;Exhibitors at the 5th annual bi-provincial Try-ATrade Career Expo in Lloydminster held on May 7 wore â&#x20AC;&#x153;Ask Meâ&#x20AC;? buttons to help to get students talking about trades as a first career option.

The gimmick worked according to the initial exhibitor feedback conveyed to lead organizer Dorothy Carson, executive director of the Lloydminster Construction Association. â&#x20AC;&#x153;They find the students are very engaging and ask the right questions and they want to know about the trades,â&#x20AC;? said Carson at the midpoint of the event at the Lloydminster Exhibition Grounds.

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More than 2,000 students from regional high schools in Alberta and Saskatchewan bussed to Lloydminster to seek career path information on 51 designated trades and participate in trade demos. â&#x20AC;&#x153;We have the schools which provide a little advice on how to get to the trades, and we have the employers who tell them a little bit about their daily life as tradesperson. I think it all works well together,â&#x20AC;? said Carson.

Some exhibitors had to cancel at the last minute due to busy work schedules and weather related issues, but the demand for trades marches on in both provinces. â&#x20AC;&#x153;I think we are still going very strong. The demand is there,â&#x20AC;? said Paul Blankestijn, youth apprenticeship liaison with Saskatchewan Apprenticeship and Trade Certification Commission. â&#x20AC;&#x153;We have retirements that are still happening. Industry is still demanding that our young people consider the trades when they leave high school. Thatâ&#x20AC;&#x2122;s where we fall in with the youth apprenticeship program.â&#x20AC;?

Blankestijn came to Lloydminster with a goal to get students interested in the provincial Youth Apprenticeship Program and equip them with an overview of the different trades options. â&#x20AC;&#x153;Our young people, if they have a plan when they are in Grade 10 and 11, they can access the practicable applied arts courses in high school and set themselves up when they graduate to get involved in a trade,â&#x20AC;? he said. â&#x20AC;&#x153;Our numbers are very strong (in the program) and we just want to continue to move forward.â&#x20AC;?

Alberta is also facing a major shortage of skilled labour that Mike Kazlechko, an apprenticeship consultant with Alberta Innovation and Advanced Education

calls widespread. â&#x20AC;&#x153;Every employer I talk to is looking.

They have a shortage.

It doesnâ&#x20AC;&#x2122;t matter which trade,â&#x20AC;? he said. â&#x20AC;&#x153;Every trade from automotive and steamfitter/pipefitter in the oil and gas sector, theyâ&#x20AC;&#x2122;re all short.â&#x20AC;?

Kazlechkoâ&#x20AC;&#x2122;s main mission at Try-ATrade was to engage Alberta students about the Registered Apprenticeship Program (RAP) for students to apprentice part-time while in school. â&#x20AC;&#x153;It starts in Grade 10. For every so many hours they work, they can get five credits towards their high school diploma to a maximum of 40 credits,â&#x20AC;? explained Kazlechko who noted interest in RAP is growing. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re getting lots of students and the teachers are starting to get interested in promoting it to their students as well.â&#x20AC;?

Carpentry was on the mind of Jake Tadgell, a Grade 12 student from Lloydminster Comprehensive High School who brought his resume to the Craftex Builders demo seeking a summer job.

But first, he aced a wood framing puzzle by following a Craftex Buildersâ&#x20AC;&#x2122; blueprint, and spoke about his interest in carpentry to Pipeline News. â&#x20AC;&#x153;I donâ&#x20AC;&#x2122;t know itâ&#x20AC;&#x2122;s just something Iâ&#x20AC;&#x2122;ve been good at â&#x20AC;&#x201C; enough to get good marks in class and I just like it,â&#x20AC;? said Tadgell who is taking cabinet making and construction at school.

Tadgell also got to speak to Craftex carpenter Clinton Resch who revealed that he attended Lakeland College in Vermilion for his apprenticeship schooling, inspired to follow in his brotherâ&#x20AC;&#x2122;s footsteps. â&#x20AC;&#x153;My older brother was in it and every time I was done school, I would go and work with him. I decided to try it and so far I like it,â&#x20AC;? said Resch about his trade. ɸ Page B33

PIPELINE NEWS June 2014 Katelin Bexson, a Lloydminster Comprehensive High School student who is related to the Bexson ConĆ?Ć&#x161;Ć&#x152;ĆľÄ?Ć&#x;ŽŜ ĨÄ&#x201A;ĹľĹ?ĹŻÇ&#x2021;Í&#x2022; Ć&#x161;Ä&#x17E;Ć?Ć&#x161;Ć? Ĺ&#x161;Ä&#x17E;Ć&#x152; Ä&#x201A;Ä?Ĺ?ĹŻĹ?Ć&#x161;Ç&#x2021; Ć&#x161;Ĺ˝ Ć?Ä&#x201A;ĨÄ&#x17E;ĹŻÇ&#x2021; Ç Ä&#x201A;ĹŻĹŹ Ä&#x201A;Ä?Ć&#x152;Ĺ˝Ć?Ć? an I-beam at the companyâ&#x20AC;&#x2122;s Try-A-Trade demo.

Éş Page B32 â&#x20AC;&#x153;Everywhere you look something is getting built. Itâ&#x20AC;&#x2122;s a job that will probably never run out especially around here.â&#x20AC;?

Long term jobs and high pay were two selling points for students to consider as a future grader operator or heavy equipment operator in the RM of Wilton where the Lloydminster Husky Upgrader is situated. â&#x20AC;&#x153;I think they are overlooked sometimes in terms of high school students and what is showcased as a lucrative job,â&#x20AC;? said Krista Bondy, human resources coordinator for the RM. â&#x20AC;&#x153;For example, our heavy equipment operators earn anywhere from $70,000to $95,000 a year. â&#x20AC;&#x153;Our grader opera-

said Margo Gasser, human resources manager. â&#x20AC;&#x153;Hopefully, they will come to our company.â&#x20AC;?

Gasser said CWC has an immediate need for derrick hands and floorhands in the Lloydminster area and she hoped to get youth asking questions about these types of oilfield careers. â&#x20AC;&#x153;We get to talk to all of the kids in the surrounding areas,â&#x20AC;? she said about the benefit of being at Try-A-Trade.

tors being on the higher end of that â&#x20AC;&#x201C; so they can make anywhere from $80,000 to $130,000 a year.â&#x20AC;?

The RM of Wilton is also setting up a new advanced motor grader school this year that will provide camp housing and six weeks of classroom and field training.

CWC Well Servic-

â&#x20AC;&#x153;Generally. we look for people who will work with us in the long term.â&#x20AC;?

Mason Shaw, a Bishop Lloyd Middle School student came to soak in all the information and found himself taking part in an I-Beam safety walk demo led by Bexson Construction Ltd. employees. â&#x20AC;&#x153;Iâ&#x20AC;&#x2122;m just kind of learning about this stuff. I havenâ&#x20AC;&#x2122;t heard too much about it. Com-

ing here and checking everything out is pretty cool,â&#x20AC;? he said, adding he is still unsure about a career in the trades. â&#x20AC;&#x153;Iâ&#x20AC;&#x2122;ve kind of thought about it. It maybe something that would interest me in the future.

He said his dad works in the oilfield for Global Fusion Coatings. but he wouldnâ&#x20AC;&#x2122;t commit to the suggestion â&#x20AC;&#x153;like father, like sonâ&#x20AC;? career path. â&#x20AC;&#x153;Maybe,â&#x20AC;? he said.

ing was on the hunt at Try-A-Trade for future service rig employees and had a candy jar full to attract students to their booth. â&#x20AC;&#x153;We hope to talk to the young people and let them know about our industry and see if they have any interest after school in working in the oil and gas industry,â&#x20AC;?

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PIPELINE NEWS June 2014

Deadline looms for heavy oil presenters

The 2014 Lloydminster Heavy Oil Show & Technical Symposium on Sept 10-11 will feaĆ&#x161;ĆľĆ&#x152;Ä&#x17E; Ć?Ä&#x17E;Ç&#x20AC;Ä&#x17E;Ć&#x152;Ä&#x201A;ĹŻ Ć&#x161;Ä&#x17E;Ä?Ĺ&#x161;ĹśĹ?Ä?Ä&#x201A;ĹŻ Ć&#x2030;Ć&#x152;Ä&#x17E;Ć?Ä&#x17E;ĹśĆ&#x161;Ä&#x201A;Ć&#x;ŽŜĆ? ŽŜ Ĺ&#x161;Ä&#x17E;Ä&#x201A;Ç&#x20AC;Ç&#x2021; Ĺ˝Ĺ?ĹŻ Ĺ?ŜŜŽÇ&#x20AC;Ä&#x201A;Ć&#x;ŽŜÍ&#x2DC; WĹ?Ä?Ć&#x161;ĆľĆ&#x152;Ä&#x17E;Ä&#x161; Ĺ?Ć? Ć&#x161;Ĺ&#x161;Ä&#x17E; Ä&#x201A;ĆľÄ&#x161;Ĺ?Ä&#x17E;ĹśÄ?Ä&#x17E; Ć?Ä&#x17E;ĆŠĹŻĹ?ĹśĹ? Ĺ?Ĺś ĨŽĆ&#x152; Ć&#x161;Ĺ&#x161;Ä&#x17E; ÄŽĆ&#x152;Ć?Ć&#x161; Ć&#x152;ŽƾŜÄ&#x161; ŽĨ Ć&#x161;Ä&#x17E;Ä?Ĺ&#x161;ĹśĹ?Ä?Ä&#x201A;ĹŻ Ć&#x2030;Ć&#x152;Ä&#x17E;Ć?Ä&#x17E;ĹśĆ&#x161;Ä&#x201A;Ć&#x;ŽŜĆ? Ä&#x201A;Ć&#x161; Ć&#x161;Ĺ&#x161;Ä&#x17E; >ĹŻĹ˝Ç&#x2021;Ä&#x161;ĹľĹ?ĹśĆ?Ć&#x161;Ä&#x17E;Ć&#x152; Ç&#x2020;Ĺ&#x161;Ĺ?Ä?Ĺ?Ć&#x;ŽŜ 'Ć&#x152;ŽƾŜÄ&#x161;Ć? Ä&#x161;ĆľĆ&#x152;Ĺ?ĹśĹ? Ć&#x161;Ĺ&#x161;Ä&#x17E; Ä?ŽžÄ?Ĺ?ĹśÄ&#x17E;Ä&#x161; ĎŽĎŹĎ­ĎŽ Ĺ&#x161;Ä&#x17E;Ä&#x201A;Ç&#x20AC;Ç&#x2021; Ĺ˝Ĺ?ĹŻ Ć?Ĺ&#x161;Ĺ˝Ç Ä&#x201A;ĹśÄ&#x161; Ć&#x161;Ä&#x17E;Ä?Ĺ&#x161;ĹśĹ?Ä?Ä&#x201A;ĹŻ Ć?Ç&#x2021;ĹľĆ&#x2030;Ĺ˝Ć?Ĺ?ƾžÍ&#x2DC; File photo WĹ?Ä?Ć&#x161;ĆľĆ&#x152;Ä&#x17E;Ä&#x161; Ä?Ä&#x17E;Ĺ?ĹśĹ? Ĺ?ĹśĆ&#x161;Ć&#x152;Ĺ˝Ä&#x161;ĆľÄ?Ä&#x17E;Ä&#x161; Ä&#x161;ĆľĆ&#x152;Ĺ?ĹśĹ? Ć&#x161;Ĺ&#x161;Ä&#x17E; ĎŽĎŹĎ­ĎŽ >ĹŻĹ˝Ç&#x2021;Ä&#x161;ĹľĹ?ĹśĆ?Ć&#x161;Ä&#x17E;Ć&#x152; ,Ä&#x17E;Ä&#x201A;Ç&#x20AC;Ç&#x2021; KĹ?ĹŻ ^Ĺ&#x161;Ĺ˝Ç Î&#x2DC; dÄ&#x17E;Ä?Ĺ&#x161;ĹśĹ?Ä?Ä&#x201A;ĹŻ ^Ç&#x2021;ĹľĆ&#x2030;Ĺ˝Ć?Ĺ?ƾž Ä?Ä&#x201A;ĹśĆ&#x2039;ĆľÄ&#x17E;Ć&#x161; Ä&#x201A;Ć&#x152;Ä&#x17E; Ĺ&#x161;Ä&#x17E;Ä&#x201A;Ä&#x161; Ć&#x161;Ä&#x201A;Ä?ĹŻÄ&#x17E; Ĺ?ĆľÄ&#x17E;Ć?Ć&#x161;Ć? ͞ůͲĆ&#x152;Íż DÄ&#x201A;Ć&#x152;ĹŹ Ä&#x201A;Ä?ŽŜÍ&#x2022; Ä?Ĺ&#x161;Ä&#x201A;Ĺ?Ć&#x152; ŽĨ Ć&#x161;Ĺ&#x161;Ä&#x17E; >ĹŻĹ˝Ç&#x2021;Ä&#x161;ĹľĹ?ĹśĆ?Ć&#x161;Ä&#x17E;Ć&#x152; Â&#x201E; By Geoff Lee ^Ĺ˝Ä?Ĺ?Ä&#x17E;Ć&#x161;Ç&#x2021; ŽĨ WÄ&#x17E;Ć&#x161;Ć&#x152;ŽůÄ&#x17E;ƾž ĹśĹ?Ĺ?ĹśÄ&#x17E;Ä&#x17E;Ć&#x152;Ć? Íž^W ÍżÍ&#x2022; ĹśÄ&#x161;Ć&#x152;Ä&#x17E;Ç KĆ&#x152;Ä&#x201A;Ä?Ĺ&#x161;Ä&#x17E;Ć?ĹŹĹ?Í&#x2022; >ĹŻĹ˝Ç&#x2021;Ä&#x161;ĹľĹ?ĹśĆ?Ć&#x161;Ä&#x17E;Ć&#x152; KĹ?ĹŻÄŽÄ&#x17E;ĹŻÄ&#x161; dÄ&#x17E;Ä?Ĺ&#x161;ĹśĹ?Lloydminster â&#x20AC;&#x201C; New Ä?Ä&#x201A;ĹŻ ^Ĺ˝Ä?Ĺ?Ä&#x17E;Ć&#x161;Ç&#x2021; ĹľÄ&#x17E;ĹľÄ?Ä&#x17E;Ć&#x152; Ä&#x201A;ĹśÄ&#x161; DĹ?ĹŹÄ&#x17E; DÄ?/ĹśĆ&#x161;Ĺ˝Ć?Ĺ&#x161; Ć&#x2030;Ć&#x152;Ĺ˝Ĺ?Ć&#x152;Ä&#x201A;Ĺľ Ä?Ĺ&#x161;Ä&#x201A;Ĺ?Ć&#x152;Í&#x2DC; File photo innovations, field re-

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search projects and pilot studies pertaining to heavy oil are the types of topics to be presented during the 2014 Lloydminster Heavy Oil Show & Technical Symposium on Sept.

10-11.

SPE program chairperson, Mike McIntosh broadcast a final call for abstracts during the April technical luncheon held at the Lloydminster Exhibition Grounds where the oil show and symposium will take place.

The call for papers is urgent with a May 31 deadline looming. â&#x20AC;&#x153;We are going to

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be working again with the Lloydminster Heavy Oil Show and having presentations during the event,â&#x20AC;? said McIntosh at the Prairie Willow Room. â&#x20AC;&#x153;So right now we have a call for presentations.â&#x20AC;?

McIntosh invited anyone who wants to present topics during the oil show to get their information to him or SPE secretary Shauna Watson as soon as possible.

Each technical session will take 45 minutes with a 30 minute talk and a 15 minute question and answer period. â&#x20AC;&#x153;Probably the first day there will be at least three if not four and then the morning of the second day,â&#x20AC;? said McIntosh referring to the speaker schedule.

The heavy oil show and the technical symposium are being held in conjunction once again thanks to positive feedback from the initial trial in 2012. â&#x20AC;&#x153;I think it was a very good success. There were some things that were tried that were new. If you are not trying new things you are not going forward,â&#x20AC;? said McIntosh. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s a win-win for both parties. The Lloyd oil show is working with us to provide the venue and weâ&#x20AC;&#x2122;re working to help them bringing in a technical component to the show. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s an opportunity for people to share innovation technology. â&#x20AC;&#x153;So itâ&#x20AC;&#x2122;s a great opportunity for people

attending the show, but it is also a great opportunity for exhibitors or any other company to talk about what they are doing.â&#x20AC;?

In other news, monthly technical luncheons will resume in October after the oil show in September and a summer break. â&#x20AC;&#x153;It will be a company coming to talk about RF heating (radio frequency) so keep an eye out for that,â&#x20AC;? said McIntosh at the final spring luncheon.

He reminded guests that all future SEP technical luncheons would take place at the same location at the exhibition grounds following a venue shift from the Days Hotel & Suites. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s still in the development stages but SPE Canada â&#x20AC;&#x201C; it looks like they will be putting on a workshop here in November,â&#x20AC;? added McIntosh. â&#x20AC;&#x153;It will be on the five year vision of heavy oil.â&#x20AC;?

He also said the third annual SPE Heavy Oil Conference â&#x20AC;&#x201C; Canada will be held in Calgary June 10-12.

That event is expected to attract over 1,200 North American and International exploration and development professionals technological innovation driving and shaping the future of heavy oil in Canada.

McIntosh also thanked local SPE oil and gas sponsors for their support and invited anyone who might be interested in joining the board to step forward.

PIPELINE NEWS June 2014

B35

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NAOSH safety hits the target Lloydminster â&#x20AC;&#x201C; There was probably no better place to host annual North American Occupation Safety and Health week demonstrations in Lloydminster than at the new Target Safety Services building in the Robinson Industrial Park.

The new facility provided the safety culture and the space to house the many indoor and outdoor exhibitors and demonstrations by safety companies and organizations that answered Targetâ&#x20AC;&#x2122;s call to participate. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s been great. Itâ&#x20AC;&#x2122;s not the first one. It has run in the past and itâ&#x20AC;&#x2122;s always been received very well by the general public and industry here in Lloydminster so weâ&#x20AC;&#x2122;re glad to be part of it,â&#x20AC;? said Clint McKinlay, Targetâ&#x20AC;&#x2122;s general manager.

The May 2 event was timed to help celebrate the start of NAOSH week celebrations May 4-11 and spread word in the community about the need for safety awareness on and off the job.

â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re having the free barbecue from 11 to 4 so the general public can come out and take in the event and learn as much as they can about health and safety,â&#x20AC;? said McKinlay at the opening. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re going to have a variety of different safety demonstrations, different suppliers and companies and organizations from Lloydminster and as far as Saskatoon, to raise the awareness of the community.â&#x20AC;?

The event included indoor demonstrations on confined space entry by Target and fall protection and safety eyewear demos by the Saskatchewan Construction Safety Association.

ATCO Electric demonstrated the dangers of working around high power voltage while Astec Safety Inc. ran a simulated fire extinguisher exercise in the shop.

Visitors could also check out the Smith Driving System demo

by Target and a first responder demo by the

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John Petropolous Memorial Fund on Targetâ&#x20AC;&#x2122;s second floor office wing.

Outside was a live fire demonstration on the use of a dry chemical fire extinguisher jointly operated by Target and Astec.

Safety messages, services and products were also available from Men at Risk, Lakeland Lloydminster Regional Safety Committee, St. John Ambulance, Thorpe Recovery Centre and Ditch Hitch.

Visitors also had a chance to win door prizes including a 32-inch LED television, from Target, a tool combo set donated by the Lakeland Lloydminster Regional Safety Committee and a socket set provided by ATCO Electric.

4006-50th Ave. Lloydminster, AB T9V 1B2 Ph (780) 875 4800 Fax (780) 875 9191 1888 875 9288 #3-602 Circle Drive East Saskatoon, SK S7K 0T9 Ph (306) 653 4800 Fax (306) 653 9191 1 877 653 4800

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PIPELINE NEWS June 2014

Lloyd pauses for injured, fallen workers Â&#x201E; By Geoff Lee Lloydminster â&#x20AC;&#x201C; Workplace safety has room for improvement given the fact 188 workers were killed in Alberta and 35 in Saskatchewan in 2013 from on the job injuries or illnesses.

Annual workplaces fatalities are tracked by the Alberta Workersâ&#x20AC;&#x2122; Compensation Board and WorkSafe Saskatchewan. â&#x20AC;&#x153;With the records that we see before us, there is obviously room for improvement,â&#x20AC;? Lloydminster mayor Rob Saunders told a large crowd of about 200 people gathered for National Day of Mourning ceremonies at city hall on April 28. â&#x20AC;&#x153;Obviously, we need to continue to pay close attention to our workplace procedures, standards and influence our governments â&#x20AC;&#x201C; municipal, provincial and federal to implement safety standards and to keep improving to make the workplace a safer place,â&#x20AC;? added Saunders.

Saunders, Cody Bexson, owner of Bexson Construction and vice president of the Lloydminster Construction Association, and city safety coordinator, Nicky Truhn lowered flags to half mast at 9:30 a.m.

The party of officials included Schlumbergerâ&#x20AC;&#x2122;s Jennifer Keach, chairperson of the Lakeland Regional Safety Committee that coordinated the event with the city.

Keach urged everyone to participate in the local Steps for Life walk fundraiser held on May 4 in support of families affected by a workplace death or injury.

Representatives from ATCO Electric, several other members of the regional safety committee and many city employees attended the somber morning of reflection under grey skies and light rain.

The National Day of Mourning is when all of Canada pauses for a moment of silence to remember injured and fallen workers and their families. â&#x20AC;&#x153;Youâ&#x20AC;&#x2122;ll see many people doing the same things that weâ&#x20AC;&#x2122;re doing here today, and hopefully it will last us the rest of the year going forward,â&#x20AC;? said Saunders.

The event has spread to 80 countries in the world as the impact of workers who are killed or injured on the job hits home with families and loved ones. ɸ Page B37

>Ä&#x17E;Ĺ&#x152;Í&#x2014; >ĹŻĹ˝Ç&#x2021;Ä&#x161;ĹľĹ?ĹśĆ?Ć&#x161;Ä&#x17E;Ć&#x152; DÄ&#x201A;Ç&#x2021;Ĺ˝Ć&#x152; ZĹ˝Ä? ^Ä&#x201A;ƾŜÄ&#x161;Ä&#x17E;Ć&#x152;Ć? Ĺ?Ć? Ĺ&#x2021;Ä&#x201A;ŜŏÄ&#x17E;Ä&#x161; Ä?Ç&#x2021; Ä?Ĺ?Ć&#x161;Ç&#x2021; Ć?Ä&#x201A;ĨÄ&#x17E;Ć&#x161;Ç&#x2021; Ä?ŽŽĆ&#x152;Ä&#x161;Ĺ?ĹśÄ&#x201A;Ć&#x161;Ĺ˝Ć&#x152;Í&#x2022; EĹ?Ä?ĹŹÇ&#x2021; dĆ&#x152;ĆľĹ&#x161;ĹśÍ&#x2022; ĹŻÄ&#x17E;Ĺ&#x152;Í&#x2022; Ä&#x201A;ĹśÄ&#x161; ŽŜ Ć&#x161;Ĺ&#x161;Ä&#x17E; Ć&#x152;Ĺ?Ĺ?Ĺ&#x161;Ć&#x161;Í&#x2022; Ä?Ç&#x2021; Ĺ˝Ä&#x161;Ç&#x2021; Ä&#x17E;Ç&#x2020;Ć?ŽŜÍ&#x2022; Ĺ˝Ç ĹśÄ&#x17E;Ć&#x152; ŽĨ Ä&#x17E;Ç&#x2020;Ć?ŽŜ ŽŜĆ?Ć&#x161;Ć&#x152;ĆľÄ?Ć&#x;ŽŜ Ä&#x201A;ĹśÄ&#x161; Ç&#x20AC;Ĺ?Ä?Ä&#x17E; Ć&#x2030;Ć&#x152;Ä&#x17E;Ć?Ĺ?Ä&#x161;Ä&#x17E;ĹśĆ&#x161; ŽĨ Ć&#x161;Ĺ&#x161;Ä&#x17E; >ĹŻĹ˝Ç&#x2021;Ä&#x161;ĹľĹ?ĹśĆ?Ć&#x161;Ä&#x17E;Ć&#x152; ŽŜĆ?Ć&#x161;Ć&#x152;ĆľÄ?Ć&#x;ŽŜ Ć?Ć?Ĺ˝Ä?Ĺ?Ä&#x201A;Ć&#x;ŽŜÍ&#x2DC; &ĹŻÄ&#x201A;Ĺ?Ć? Ç Ä&#x17E;Ć&#x152;Ä&#x17E; ĹŻĹ˝Ç Ä&#x17E;Ć&#x152;Ä&#x17E;Ä&#x161; Ć&#x161;Ĺ˝ Ĺ&#x161;Ä&#x201A;ůĨ ĹľÄ&#x201A;Ć?Ć&#x161; ŽŜ EÄ&#x201A;Ć&#x;ŽŜÄ&#x201A;ĹŻ Ä&#x201A;Ç&#x2021; ŽĨ DŽƾĆ&#x152;ĹśĹ?ĹśĹ? Ć&#x161;Ĺ˝ Ĺ&#x161;ŽŜŽƾĆ&#x152; Ć&#x161;Ĺ&#x161;Ĺ˝Ć?Ä&#x17E; Ç Ĺ&#x161;Ĺ˝ Ĺ&#x161;Ä&#x201A;Ç&#x20AC;Ä&#x17E; Ä?Ä&#x17E;Ä&#x17E;Ĺś Ä&#x161;Ĺ?Ć?Ä&#x201A;Ä?ĹŻÄ&#x17E;Ä&#x161;Í&#x2022; Ĺ?ŜŊƾĆ&#x152;Ä&#x17E;Ä&#x161; Ĺ˝Ć&#x152; ĹŹĹ?ĹŻĹŻÄ&#x17E;Ä&#x161; Ä&#x201A;Ć&#x161; Ć&#x161;Ĺ&#x161;Ä&#x17E;Ĺ?Ć&#x152; Ç Ĺ˝Ć&#x152;ĹŹĆ&#x2030;ĹŻÄ&#x201A;Ä?Ä&#x17E; Ĺ?Ĺś ĎŽĎŹĎ­ĎŻÍ&#x2DC;

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ĹŻÄ&#x201A;Ć&#x152;Ĺ?Ä&#x17E; Ä?Ć&#x152;Ĺ˝Ç Ä&#x161; Ĺ?Ä&#x201A;Ć&#x161;Ĺ&#x161;Ä&#x17E;Ć&#x152;Ä&#x17E;Ä&#x161; Ä&#x201A;Ć&#x161; >ĹŻĹ˝Ç&#x2021;Ä&#x161;ĹľĹ?ĹśĆ?Ć&#x161;Ä&#x17E;Ć&#x152; Ä?Ĺ?Ć&#x161;Ç&#x2021; Ĺ&#x161;Ä&#x201A;ĹŻĹŻ ĨŽĆ&#x152; ĹŻĹ˝Ä?Ä&#x201A;ĹŻ EÄ&#x201A;Ć&#x; ŽŜÄ&#x201A;ĹŻ Ä&#x201A;Ç&#x2021; ŽĨ DŽƾĆ&#x152;ĹśĹ?ĹśĹ? ŽŜ Ć&#x2030;Ć&#x152;Ĺ?ĹŻ ĎŽĎ´ Ć&#x161;Ĺ˝ Ć&#x152;Ä&#x17E;ĹľÄ&#x17E;ĹľÄ?Ä&#x17E;Ć&#x152; Ç Ĺ˝Ć&#x152;ĹŹÄ&#x17E;Ć&#x152;Ć? Ä&#x161;Ĺ?Ć?Ä&#x201A;Ä?ĹŻÄ&#x17E;Ä&#x161;Í&#x2022; Ĺ?ŜŊƾĆ&#x152;Ä&#x17E;Ä&#x161; Ĺ˝Ć&#x152; ĹŹĹ?ĹŻĹŻÄ&#x17E;Ä&#x161; Ä&#x201A;Ć&#x161; Ć&#x161;Ĺ&#x161;Ä&#x17E;Ĺ?Ć&#x152; Ć&#x2030;ĹŻÄ&#x201A;Ä?Ä&#x17E; ŽĨ Ç Ĺ˝Ć&#x152;ĹŹ Ĺ?Ĺś 2013. Among those killed on the job last year were 188 workers in Alberta and 35 in Saskatchewan.

Éş Page B36 â&#x20AC;&#x153;We are trying to remember not only those who lost their lives to illness or injury in the workplace but also to the families and friends of people that have been affected by these incident and tragedies,â&#x20AC;? said Saunders to the crowd. â&#x20AC;&#x153;They are widespread and as any of you know that have experience, these incidents in the workplace â&#x20AC;&#x201C; it affects everyone deeply and those precious lives that were lost can never be replaced.â&#x20AC;?

Saunders said the city of Lloydminster takes safety seriously with the expectation that everyone goes home safe and sound at the end of the work day. â&#x20AC;&#x153;We conscientiously think about things every day. Itâ&#x20AC;&#x2122;s a huge responsibility that we do take on in the workplace,â&#x20AC;? he said. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s really about responsible care and looking after each other as human beings because we are all just people who go home at the end of the day to our families. â&#x20AC;&#x153;We really work to make a living and why should we put ourselves in harmâ&#x20AC;&#x2122;s way?â&#x20AC;?

Saunders said more needs to be done to improve workplace safety and breed safety mindedness. â&#x20AC;&#x153;When you see these numbers each year, you realize each and every one of us could be doing a better job creating more awareness around looking after each other out there in the workplace,â&#x20AC;? he told the crowd. â&#x20AC;&#x153;I will commend everyone that does follow the procedures and standards and does invest as companies in safety in the workplace. â&#x20AC;&#x153;As leaders in the community in the region and the organizations, we all take that very seriously. I guess if reflects on everyone that participates with us each and every day.â&#x20AC;?

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PIPELINE NEWS June 2014

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Mike McIntosh, Lloydminster SPE program chairperson presents Mona Trick an SPE disĆ&#x; ĹśĹ?ĆľĹ?Ć?Ĺ&#x161;Ä&#x17E;Ä&#x161; ĹŻÄ&#x17E;Ä?Ć&#x161;ĆľĆ&#x152;Ä&#x17E;Ć&#x152; Ç Ĺ?Ć&#x161;Ĺ&#x161; Ä&#x201A; Ĺ?Ĺ?Ĺ&#x152; ĨŽĆ&#x152; Ĺ&#x161;Ä&#x17E;Ć&#x152; Ć&#x161;Ä&#x201A;ĹŻĹŹ ŽŜ Ć?Ĺ˝Ĺ&#x152; Ç Ä&#x201A;Ć&#x152;Ä&#x17E; žŽÄ&#x161;Ä&#x17E;ĹŻĹ?ĹśĹ? ŽĨ ĹŻĹ?Ć&#x2039;ĆľĹ?Ä&#x161; Ć?ĹŻĆľĹ?Ć? Ĺ?Ĺś žƾůͲ Ć&#x; Ć&#x2030;Ĺ&#x161;Ä&#x201A;Ć?Ä&#x17E; Ć&#x2030;Ĺ?Ć&#x2030;Ä&#x17E;ĹŻĹ?ĹśÄ&#x17E;Ć? Ä&#x201A;Ć&#x161; Ć&#x161;Ĺ&#x161;Ä&#x17E; Ć&#x2030;Ć&#x152;Ĺ?ĹŻ ^W ůƾŜÄ?Ĺ&#x161;Ä&#x17E;ŽŜÍ&#x2DC; dĆ&#x152;Ĺ?Ä?ĹŹ Ĺ?Ć? Ä&#x201A;Ĺś Ä&#x201A;Ä&#x161;Ç&#x20AC;Ĺ?Ć?Ĺ˝Ć&#x152; ĨŽĆ&#x152; ^Ä?Ĺ&#x161;ůƾžÄ?Ä&#x17E;Ć&#x152;Ĺ?Ä&#x17E;Ć&#x152;Í&#x203A;Ć? &ĹŻĹ˝Ç ^Ĺ˝Ĺ&#x152; Ç Ä&#x201A;Ć&#x152;Ä&#x17E; Ä&#x201A;ĹśÄ&#x161; Ĺ?Ć? Ä?Ä&#x201A;Ć?Ä&#x17E;Ä&#x161; Ĺ?Ĺś Ä&#x201A;ĹŻĹ?Ä&#x201A;Ć&#x152;Ç&#x2021;Í&#x2DC;

Â&#x201E; By Geoff Lee Lloydminster â&#x20AC;&#x201C; The April luncheon presentation of the Lloydminster Society of Petroleum Engineers (SPE) took on the problem of liquid slugs in multiphase pipelines containing gas and liquids.

The presenter was Mona Trick, a professional engineer and an advisor for Schlumbergerâ&#x20AC;&#x2122;s Flow Software group based in Calgary.

Trick came to Lloydminster as a SPE distinguished lecturer who aimed to outline procedures for handling and modeling four types of slugs using steady state and transient software. â&#x20AC;&#x153;The focus of my talk is pipelines, but it also applies to the horizontal part of a horizontal well,â&#x20AC;? said Trick in her opening remarks at the Lloydminster Exhibition Grounds. â&#x20AC;&#x153;It is really important to determine what kind of slugging you have because the type of slugging will influence how you model it and how you prevent damage.â&#x20AC;?

For the unprepared, liquid slugs can increase corrosion, impair production, damage compressors, flood separators and damage process equipment.

Slugging occurs in multiphase pipelines (containing gas and liquids) when the liquid completely fills the pipeline and is alternated by a time when the liquid only partially fills the pipeline.

The four types of slugging are hydrodynamic, terrain induced slugs, turn up slugs and pigging slugs. â&#x20AC;&#x153;For each of these types I will tell you how to model it with steady state multiphase software,â&#x20AC;? said Trick.

Trick is a software developer who works on forecasting software which models the entire oilfield or gas field right from the reservoir, the wellbore and the pipelines to the processing plant.

The software is used to predict pressure losses in the pipelines and wellbores and helps to determine what is needed to develop the field effectively and to mitigate future problems.

Steady state software she said will predict the pressure drop and the slip between the gas and the liquid in multiphase pipelines.â&#x20AC;?

Trick explained because gas is lighter, it will travel faster than the liquid does.

This creates a situation where the gas â&#x20AC;&#x153;zooms past the liquidâ&#x20AC;? and leads to whatâ&#x20AC;&#x2122;s called â&#x20AC;&#x153;liquid holdupâ&#x20AC;? where the liquid actually accumulates in the pipe compared to the gas.

Steady state software such as Pipesim from Schlumberger will predict the pressure drop and the liquid holdup or the slip between gas and liquid under steady state conditions.

Modeling with transient multiphase software will also predict the pressure drop and the liquid holdup, but it does it on a second by second basis. â&#x20AC;&#x153;You can actually see the slug moving through the pipeline as the software tracks it,â&#x20AC;? said Trick.

Examples of transient software are Olga developed in Norway by the SPT Group a Schlumberger company and Flow Master from FMC Technologies. â&#x20AC;&#x153;Slug flow is when liquid completely fills a pipe followed by a time when there is hardly any liquid,â&#x20AC;? said Trick. â&#x20AC;&#x153;It can do damage to your facilities especially when the flow changes direction in your pipeline.â&#x20AC;?

Trick noted if you havenâ&#x20AC;&#x2122;t built your slug catcher or your separator big enough, the liquid slug will completely fill the separator.

That liquid overflow will end up in the gas area and cause serious damage to process equipment and compressors. â&#x20AC;&#x153;You need to know how long these slugs are going to be to size your separator and slug catcher,â&#x20AC;? she said. ɸ Page B39

PIPELINE NEWS June 2014 and answer period Trick said yes to a question on whether the same sort of slug can occur in the horizontal section of well as in a pressurized pipeline.

She said study last

DŽŜÄ&#x201A; dĆ&#x152;Ĺ?Ä?ĹŹÍ&#x2022; Ä&#x201A;Ĺś Ä&#x201A;Ä&#x161;Ç&#x20AC;Ĺ?Ć?Ĺ˝Ć&#x152; ĨŽĆ&#x152; ^Ä?Ĺ&#x161;ůƾžÄ?Ä&#x17E;Ć&#x152;Ĺ?Ä&#x17E;Ć&#x152;Í&#x203A;Ć? &ĹŻĹ˝Ç ^Ĺ˝Ĺ&#x152; Ç Ä&#x201A;Ć&#x152;Ä&#x17E; Ä&#x161;Ä&#x17E;ĹŻĹ?Ç&#x20AC;Ä&#x17E;Ć&#x152;Ä&#x17E;Ä&#x161; Ä&#x201A; Ć&#x161;Ä&#x201A;ĹŻĹŹ ŽŜ Ć?Ć&#x161;Ä&#x17E;Ä&#x201A;Ä&#x161;Ç&#x2021; Ć?Ć&#x161;Ä&#x201A;Ć&#x161;Ä&#x17E; Ä&#x201A;ĹśÄ&#x161; Ć&#x161;Ć&#x152;Ä&#x201A;ĹśĆ?Ĺ?Ä&#x17E;ĹśĆ&#x161; žŽÄ&#x161;Ä&#x17E;ĹŻĹ?ĹśĹ? Ć&#x161;Ĺ˝ Ć&#x2030;Ć&#x152;Ä&#x17E;Ä&#x161;Ĺ?Ä?Ć&#x161; Ä&#x201A;ĹśÄ&#x161; ĹľĹ?Ć&#x; Ĺ?Ä&#x201A;Ć&#x161;Ä&#x17E; ĹŻĹ?Ć&#x2039;ĆľĹ?Ä&#x161; Ć?ĹŻĆľĹ?Ĺ?Ĺ?ĹśĹ? Ĺ?Ĺś žƾůĆ&#x; Ć&#x2030;Ĺ&#x161;Ä&#x201A;Ć?Ä&#x17E; Ć&#x2030;Ĺ?Ć&#x2030;Ä&#x17E;Ͳ ĹŻĹ?ĹśÄ&#x17E;Ć? Ä&#x201A;Ć&#x161; Ć&#x161;Ĺ&#x161;Ä&#x17E; Ć&#x2030;Ć&#x152;Ĺ?ĹŻ ůƾŜÄ?Ĺ&#x161;Ä&#x17E;ŽŜ ŽĨ Ć&#x161;Ĺ&#x161;Ä&#x17E; >ĹŻĹ˝Ç&#x2021;Ä&#x161;ĹľĹ?ĹśĆ?Ć&#x161;Ä&#x17E;Ć&#x152; ^Ĺ˝Ä?Ĺ?Ä&#x17E;Ć&#x161;Ç&#x2021; ŽĨ WÄ&#x17E;Ć&#x161;Ć&#x152;ŽůÄ&#x17E;ƾž ĹśĹ?Ĺ?ĹśÄ&#x17E;Ä&#x17E;Ć&#x152;Ć?Í&#x2DC;

Éş Page B38 Slug flow is also turbulent and tends to strip off corrosion inhibitor coatings on pipelines.

In addition, an increase in pipeline pressure is required to remove slugs and that can reduce the flow rate of producing wells.

Trick said steady state modeling can provide some of the answers to slugging, but in other cases, transient software can fine tune some of the answers. â&#x20AC;&#x153;With the modeling you can predict whether itâ&#x20AC;&#x2122;s going to happen and then with the model you can try different combinations to try to avoid that situation or mitigate the damage,â&#x20AC;? said Trick. â&#x20AC;&#x153;In conclusion, when you are talking slugging it is really important to determine what type of slugging you have because the way you approach it, and the way you mitigate the damage from it is completely different.â&#x20AC;?

The use of steady state or transient software depends on the type of slugging.

With hydro dynamic slugging Trick said steady state software will do a pretty good job off modeling it. â&#x20AC;&#x153;You can use it to avoid the hydrodynamic slug regime by using a flow pattern map,â&#x20AC;? she said. â&#x20AC;&#x153;You can see what combination of gas and liquid velocities you need to get out of hydrodynamic slug region.

â&#x20AC;&#x153;For hydrodynamic slugging, it might be a higher gas flow rate or it might be a higher liquid flow to move out of the hydrodynamic slug region. It depends on where you are in the system.â&#x20AC;?

Steady state software will not do a good job of predicting terrain induced slugging which is when liquid gets caught in a low spot in a pipeline until there is enough pressure upstream to push it out. â&#x20AC;&#x153;This is where you need a transient model to predict it,â&#x20AC;? said Trick. â&#x20AC;&#x153;The way to avoid it is to get more velocity â&#x20AC;&#x201C; smaller pipelines and more gas to sweep out that liquid.â&#x20AC;?

Use steady state modeling to predict how big a â&#x20AC;&#x153;turn upâ&#x20AC;? slug will be. A turn up slug is caused where an operator intentionally changes from a low flow rate to a higher rate. â&#x20AC;&#x153;Use transient software to determine how quickly that slug goes through the pipeline.

You can change the flow rate in stages to reduce the size of separator required to catch that slug,â&#x20AC;? said Trick. â&#x20AC;&#x153;For the pigging slug, itâ&#x20AC;&#x2122;s more involved in the speed of the pig going through the pipeline. Steady state modeling can predict the worse case slug size. â&#x20AC;&#x153;If you donâ&#x20AC;&#x2122;t have the money to design a big slug catcher, use the transient model to tell you how fast the pig is travelling. Transient software will also tell you how often you need

to pig.

Pigging is when a cylinder is pushed through the pipe â&#x20AC;&#x201C; it completely fills the pipe.

Trick explained itâ&#x20AC;&#x2122;s called it a pig because it tends to squeal as the cylinder of metal goes through the pipe. â&#x20AC;&#x153;It tends to sweep out sand and all the liquid and sometimes it even cleans the pipe. Itâ&#x20AC;&#x2122;s used as a maintenance procedure,â&#x20AC;? she said.

Using steady state and transient modeling will help you to see if there is a problem and lets you evaluate different strategies to overcome that problem stressed Trick.

In the question

year in a horizontal shale gas by Nexen and Schlumberger researchers concluded it does occur. â&#x20AC;&#x153;In the horizontal sections you will get the same type of slugging

B39

phenomena â&#x20AC;&#x201C; for sure the hydrodynamic slugging â&#x20AC;&#x201C; and depending on your geometry and how low the flow rates are, you could get terrain induced slugging,â&#x20AC;? she said.

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B40

PIPELINE NEWS June 2014

Lloyd golf cart draw come rain or shine Lloydminster â&#x20AC;&#x201C; Organizers of the 36th annual Lloydminster Oilmenâ&#x20AC;&#x2122;s Golf Tournament to be played June 12-14 hope fun and prizes trump weather as the main story as it did for two of the three previous tournaments.

So far a new golf cart raffle is dominating the pre tournament chatter, but that could switch to weather by game day.

â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s always a question mark every year on that weekend, but weâ&#x20AC;&#x2122;re hoping for good weather and a good turnout again,â&#x20AC;? said lead organizer Kevin Simard.

Excitement is brewing over the draw for a pricey Yamaha golf cart with proceeds going to support junior golf at the 18-hole tournament course at the Lloydminster Golf & Curling Club facility.

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The Lloyd oilmenâ&#x20AC;&#x2122;s committee, Crude Master Trucking and Rock Solid Industries teamed up to purchase the cart for the raffle to be drawn at the event supper on June 13. â&#x20AC;&#x153;Hopefully, itâ&#x20AC;&#x2122;s a success for the juniors.

They are going to go around and sell entry tickets all day Thursday and Friday ( June 1213),â&#x20AC;? said Simard. â&#x20AC;&#x153;How many tickets they sell is how much they are going to get in proceeds. Itâ&#x20AC;&#x2122;s in their best interest to really work the crowd and get as many entries as they can.â&#x20AC;?

Junior club golfers will also be volunteering as ball spotters once again including eyeballing the million dollar hole-in-one competition on the 9th hole. â&#x20AC;&#x153;You know thereâ&#x20AC;&#x2122;d be nothing better than somebody winning it. It would be a great boost for everybody if we actually had somebody win it and there is always a chance,â&#x20AC;? said Simard. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s a tough hole to make that on. Weâ&#x20AC;&#x2122;re always hoping somebody makes it.â&#x20AC;?

Last year, rain

washed out the final afternoon of play including the million dollar hole contest.

In 2011, rain forced the cancellation of the final day of the tournament for the first time in its history.

Weather is close to being top of mind again as the clock ticks down to the start of play.

Inclement weather delayed the opening of the golf course until May 30 with a spate of cold weather making it hard to practice. â&#x20AC;&#x153;Usually by now weâ&#x20AC;&#x2122;ve had two or three weeks of golf in,â&#x20AC;? said Simard on May 6.

Despite the slow start to the season Simard expects all 208 spots to fill up by the May 23 entry deadline with golfers knowing this is the one of best and longest standing oilmenâ&#x20AC;&#x2122;s tournaments in Western Canada. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;ve got a lot of response again and we should be full,â&#x20AC;? said Simard. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s always been one of the biggest tournaments in Alberta.

We feel itâ&#x20AC;&#x2122;s invaluable to the community to get out there and see your fellow oil personnel and

Junior golfer volunteer Dane Dow entertained the media at the 2013 Lloydminster oilmenâ&#x20AC;&#x2122;s golf tournament while Ç Ä&#x201A;Ĺ?Ć&#x; ĹśĹ? Ć&#x161;Ĺ˝ Ä&#x201A;Ć?Ć?Ĺ?Ć?Ć&#x161; Ć&#x161;Ĺ&#x161;Ä&#x17E; ĹśÄ&#x17E;Ç&#x2020;Ć&#x161; Ĺ?Ć&#x152;ŽƾĆ&#x2030; ŽĨ Ĺ?ŽůĨÄ&#x17E;Ć&#x152;Ć?Í&#x2DC; dĹ&#x161;Ĺ?Ć? Ç&#x2021;Ä&#x17E;Ä&#x201A;Ć&#x152;Í&#x2022; ŊƾͲ ĹśĹ?Ĺ˝Ć&#x152; Ĺ?ŽůĨÄ&#x17E;Ć&#x152;Ć? Ç Ĺ?ĹŻĹŻ Ć?Ä&#x17E;ĹŻĹŻ Ć&#x152;Ä&#x201A;Ĺ&#x2039; Ä&#x17E; Ć&#x; Ä?ĹŹÄ&#x17E;Ć&#x161;Ć? ĨŽĆ&#x152; Ä&#x201A; ĹśÄ&#x17E;Ç Ĺ?ŽůĨ Ä?Ä&#x201A;Ć&#x152;Ć&#x161; Ç Ĺ?Ć&#x161;Ĺ&#x161; Ä&#x201A;ĹŻĹŻ Ć&#x2030;Ć&#x152;Ĺ˝Ä?Ä&#x17E;Ä&#x17E;Ä&#x161;Ć? Ĺ?Ĺ˝Ĺ?ĹśĹ? Ć&#x161;Ĺ˝ Ć?ĆľĆ&#x2030;Ć&#x2030;Ĺ˝Ć&#x152;Ć&#x161; Ć&#x161;Ĺ&#x161;Ä&#x17E; ŊƾŜĹ?Ĺ˝Ć&#x152; Ĺ?ŽůĨ Ä?ĹŻĆľÄ? Ć&#x2030;Ć&#x152;Ĺ˝Ĺ?Ć&#x152;Ä&#x201A;Ĺľ Ĺ?Ĺś >ĹŻĹ˝Ç&#x2021;Ä&#x161;ĹľĹ?ĹśĆ?Ć&#x161;Ä&#x17E;Ć&#x152;Í&#x2DC; File photo

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but they are usually just one day. We are the only â&#x20AC;&#x153;two dayerâ&#x20AC;? that kind of keeps going.â&#x20AC;? ɸ Page B41

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PIPELINE NEWS June 2014 Éş Page B40 The oilmenâ&#x20AC;&#x2122;s tournament is also the biggest money maker of the year for the golf club which aims to keep the players coming back year after year. â&#x20AC;&#x153;I know they consider this their biggest tournament of the year, so they really enjoy putting it on for us. They help us out greatly,â&#x20AC;? said Simard.

Simard he hadnâ&#x20AC;&#x2122;t heard if Lloydminster native son Shawn Loney would return from Moose Jaw to defend his championship flight title but he is hoping for a good competitive grouping this year under blue skies. â&#x20AC;&#x153;The problem last year was the weather on Saturday hurt us,â&#x20AC;? he said recalling the day of rain and the suspension of action after the finish of championship play. â&#x20AC;&#x153;It rained pretty well all morning, but we got the first morning round through. We just cancelled the Texas scramble part

dĹ˝Ć&#x2030;Í&#x2014; ŽƾĹ? 'Ć&#x152;Ä&#x17E;Ä&#x17E;Ĺś ĨĆ&#x152;Žž Ć?Ć&#x161;Ä&#x17E;Ä? ^Ä&#x201A;ĨÄ&#x17E;Ć&#x161;Ç&#x2021; Ć&#x2030;Ć&#x152;Ä&#x201A;Ä?Ć&#x; Ä?Ä&#x17E;Ä&#x161; Ć&#x152;Ä&#x201A;ĹŹĹ?ĹśĹ? Ĺ&#x161;Ĺ?Ć? Ĺ˝Ç Ĺś ĨŽŽĆ&#x161;Ć&#x2030;Ć&#x152;Ĺ?ĹśĆ&#x161;Ć? Ĺ?Ĺś Ć&#x161;Ĺ&#x161;Ĺ?Ć? Ć?Ä&#x201A;ĹśÄ&#x161; Ć&#x161;Ć&#x152;Ä&#x201A;Ć&#x2030; Ç Ĺ&#x161;Ä&#x17E;Ć&#x152;Ä&#x17E; Ĺ&#x161;Ĺ?Ć? Ä?Ä&#x201A;ĹŻĹŻ Ç Ĺ˝ĆľĹśÄ&#x161; ĆľĆ&#x2030; Ä&#x161;ĆľĆ&#x152;Ĺ?ĹśĹ? Ć&#x161;Ĺ&#x161;Ä&#x17E; ĎŽĎŹĎ­ĎŻ >ĹŻĹ˝Ç&#x2021;Ä&#x161;ĹľĹ?ĹśĆ?Ć&#x161;Ä&#x17E;Ć&#x152; KĹ?ĹŻĹľÄ&#x17E;ĹśÍ&#x203A;Ć? 'ŽůĨ dŽƾĆ&#x152;ĹśÄ&#x201A;ĹľÄ&#x17E;ĹśĆ&#x161;Í&#x2DC; dĹ&#x161;Ä&#x17E; ĎŽĎŹĎ­Ď° Ä&#x17E;Ç&#x20AC;Ä&#x17E;ĹśĆ&#x161; Ç Ĺ?ĹŻĹŻ Ä?Ä&#x17E; Ć&#x2030;ĹŻÄ&#x201A;Ç&#x2021;Ä&#x17E;Ä&#x161; :ƾŜÄ&#x17E; ϭώͲϭϰ Ç Ĺ?Ć&#x161;Ĺ&#x161; Ć?Ĺ?ĹľĹ?ĹŻÄ&#x201A;Ć&#x152; Ć?Ä?Ä&#x17E;ĹśÄ&#x17E;Ć? Ć&#x161;Ĺ˝ Ć&#x2030;Ĺ&#x161;Ĺ˝Ć&#x161;Ĺ˝Ĺ?Ć&#x152;Ä&#x201A;Ć&#x2030;Ĺ&#x161;Í&#x2DC; ZĹ?Ĺ?Ĺ&#x161;Ć&#x161;Í&#x2014; /Ĩ Ĺ?ŽůĨ Ĺ?Ć? Ä&#x201A; Ć&#x161;Ĺ&#x161;Ĺ?ŜŏĹ?ĹśĹ? ĹľÄ&#x201A;ĹśÍ&#x203A;Ć? Ĺ?Ä&#x201A;ĹľÄ&#x17E;Í&#x2022; Ć&#x161;Ĺ&#x161;Ä&#x17E;Ĺś <Ä&#x17E;Ç&#x20AC;Ĺ?Ĺś Ĺ˝Ç&#x2021;Ä&#x17E;Ć&#x152; ĹľĹ?Ĺ?Ĺ&#x161;Ć&#x161; Ĺ&#x161;Ä&#x201A;Ç&#x20AC;Ä&#x17E; ĆľĆ?Ä&#x17E;Ä&#x161; Ĺ&#x161;Ĺ?Ć? Ä&#x161;Ĺ˝Ç ĹśĆ&#x; ĹľÄ&#x17E; Ć&#x161;Ĺ˝ Ä&#x201A;Ć?ĹŹ Ç Ĺ&#x161;Ç&#x2021; Ĺ?Ć&#x161; Ć&#x152;Ä&#x201A;Ĺ?ĹśÄ&#x17E;Ä&#x161; Ć?Ĺ˝ Ĺ&#x161;Ä&#x201A;Ć&#x152;Ä&#x161; Ä&#x161;ĆľĆ&#x152;Ĺ?ĹśĹ? Ć&#x161;Ĺ&#x161;Ä&#x17E; ÄŽ ĹśÄ&#x201A;ĹŻ Ä&#x161;Ä&#x201A;Ç&#x2021; ŽĨ ĹŻÄ&#x201A;Ć?Ć&#x161; Ç&#x2021;Ä&#x17E;Ä&#x201A;Ć&#x152;Í&#x203A;Ć? >ĹŻĹ˝Ç&#x2021;Ä&#x161;ĹľĹ?ĹśĆ?Ć&#x161;Ä&#x17E;Ć&#x152; KĹ?ůͲ ĹľÄ&#x17E;ĹśÍ&#x203A;Ć? 'ŽůĨ dŽƾĆ&#x152;ĹśÄ&#x201A;ĹľÄ&#x17E;ĹśĆ&#x161;Í? /Ĩ Ĺ&#x161;Ä&#x17E; Ä?ŽžÄ&#x17E;Ć? Ä?Ä&#x201A;Ä?ĹŹ Ć&#x161;Ĺ&#x161;Ĺ?Ć? Ç&#x2021;Ä&#x17E;Ä&#x201A;Ć&#x152;Í&#x2022; Ĺ&#x161;Ä&#x17E; Ä?Ä&#x201A;Ĺś Ć&#x2030;ŽŜÄ&#x161;Ä&#x17E;Ć&#x152; Ĺ&#x161;Ĺ?Ć? Ä?Ĺ&#x161;Ä&#x201A;ĹśÄ?Ä&#x17E;Ć? ŽĨ Ç Ĺ?ŜŜĹ?ĹśĹ? Ä&#x201A; ĹśÄ&#x17E;Ç Ĺ?ŽůĨ Ä?Ä&#x201A;Ć&#x152;Ć&#x161; Ĺ?Ĺś Ä&#x201A; Ć&#x152;Ä&#x201A;Ĺ&#x2039; Ä&#x17E; Ä?ŽŜĆ&#x161;Ä&#x17E;Ć?Ć&#x161;Í&#x2DC; File photo

RESOURCE *XĂ&#x2014;GH

B41

of the tournament.â&#x20AC;?

This yearâ&#x20AC;&#x2122;s event will have the usual wealth of hidden hole and draw prizes in a strong oil and gas economy. â&#x20AC;&#x153;The response has been good,â&#x20AC;? said Simard to sponsorships and donations from the oilpatch. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;ve had a few sponsors from last year move around and not do the same thing this year, but we are pretty confident we can fill those positions with some new guys. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;ve had good feedback just from people stopping by the website and checking out what they can do if they want to sponsor.â&#x20AC;?

Simard and his committee will be high fiving sponsors and players while they golf together as theyâ&#x20AC;&#x2122;ve done in past years for public relations purposes. â&#x20AC;&#x153;We always do that just so we can answer any questions and keep the tournament running smooth,â&#x20AC;? said Simard.

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B42

PIPELINE NEWS June 2014

Win a golf cart prize at 25th Maidstone The chance of winning a new cart will help golfers celebrate the 25th anniversary of the event that gets underway at Silver Lake Regional Park on June 6. â&#x20AC;&#x153;We did one 10 years ago on the 15th (anniversary) and weâ&#x20AC;&#x2122;re going to try that again,â&#x20AC;? said lead organizer Jeff Watt.

The must-win prize along with it being a special year to party, led to an early sell out of the first 72 golfers to pay their entry fees. â&#x20AC;&#x153;We are full as of yesterday so weâ&#x20AC;&#x2122;re right on track,â&#x20AC;? said Watt on April 29. â&#x20AC;&#x153;It didnâ&#x20AC;&#x2122;t take long being our 25th so it filled up real quick. Weâ&#x20AC;&#x2122;ve added a few bigger prizes this year.â&#x20AC;?

Other than that he noted, â&#x20AC;&#x153;Not a whole bunch has changed. We like to keep it fairly simple and organized and keep it the same. â&#x20AC;&#x153;Everyone seems to enjoy it that way, so we havenâ&#x20AC;&#x2122;t added a whole bunch.â&#x20AC;?

What can and usually does change each year is the weather with players having to brave everything from wind, rain, hail and even snow.

This year, Watt is hoping for a full day of sun, unlike 2013 when things â&#x20AC;&#x153;went southâ&#x20AC;? quickly. :Ä&#x17E;ÄŤ tÄ&#x201A;ĆŠ Ĺ&#x161;Ä&#x17E;Ä&#x201A;Ä&#x161;Ć? Ć&#x161;Ĺ&#x161;Ä&#x17E; Ĺ˝Ć&#x152;Ĺ?Ä&#x201A;ĹśĹ?Ç&#x152;Ĺ?ĹśĹ? Ä?ŽžžĹ?ĆŠ Ä&#x17E;Ä&#x17E; ŽĨ Ć&#x161;Ĺ&#x161;Ä&#x17E; DÄ&#x201A;Ĺ?Ä&#x161;Ͳ â&#x20AC;&#x153;The first half of the day was great and then Ć?Ć&#x161;ŽŜÄ&#x17E; ,Ä&#x17E;Ä&#x201A;Ç&#x20AC;Ç&#x2021; Ć&#x152;ĆľÄ&#x161;Ä&#x17E; DÄ&#x17E;ĹśÍ&#x203A;Ć? 'ŽůĨ dŽƾĆ&#x152;ĹśÄ&#x201A;ĹľÄ&#x17E;ĹśĆ&#x161; Ä&#x201A;ĹśÄ&#x161; Ç Ĺ?ĹŻĹŻ ŽŜÄ?Ä&#x17E; we got rain in the afternoon, but you take it as it Ä&#x201A;Ĺ?Ä&#x201A;Ĺ?Ĺś Ä&#x201A;Ä?Ć&#x161; Ä&#x201A;Ć? Ć&#x161;Ĺ&#x161;Ä&#x17E; ĹľÄ&#x201A;Ć?Ć&#x161;Ä&#x17E;Ć&#x152; ŽĨ Ä?Ä&#x17E;Ć&#x152;Ä&#x17E;žŽŜĹ?Ä&#x17E;Ć? Ä&#x201A;Ć&#x161; Ć&#x161;Ĺ&#x161;Ä&#x17E; Ĺ˝Ć&#x2030;Ä&#x17E;ĹśĹ?ĹśĹ? is. Everybody still has fun,â&#x20AC;? said Watt. ΨϹϏϏ Ä?Ĺ&#x161;Ĺ?Ć&#x2030; Žč Ä?ŽŜĆ&#x161;Ä&#x17E;Ć?Ć&#x161; Ä&#x201A;Ć&#x161; Ć&#x161;Ĺ&#x161;Ä&#x17E; ĎŽĎŹĎ­Ď° Ä&#x17E;Ç&#x20AC;Ä&#x17E;ĹśĆ&#x161; ŽŜ :ƾŜÄ&#x17E; ϲÍ&#x2DC; â&#x20AC;&#x153;At least it wasnâ&#x20AC;&#x2122;t like the years when we had File photo the Herman Nelsons out in the tents to keep everybody warm. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;ve had snow before, so hopefully we donâ&#x20AC;&#x2122;t Maidstone â&#x20AC;&#x201C; A new golf cart is the top door have to deal with anything like that.â&#x20AC;? prize up for grabs at this yearâ&#x20AC;&#x2122;s Maidstone Heavy Ironically, Watt just got back from a vacation Crude Menâ&#x20AC;&#x2122;s Golf Tournament. in Cabo San Lucas in the southern tip of the Baja with a tan, but no golf stories to share.

â&#x20AC;&#x153;I didnâ&#x20AC;&#x2122;t get any golfing â&#x20AC;&#x201C; it was just a little

too hot for my liking,â&#x20AC;? he said. â&#x20AC;&#x153;It hits just about 35 C every day. It was a little on the warm side.â&#x20AC;?

Late April rain and some snow nixed the promise of an early opening of the 9-hole golf course at Silver Lake, but Watt said no worries. â&#x20AC;&#x153;Once it gets rolling it should be ready. Last year was even farther behind this year,â&#x20AC;? he said. â&#x20AC;&#x153;Normally, they like to try to open on April 15, but itâ&#x20AC;&#x2122;s been a few years since they hit that goal.â&#x20AC;?

Watt will stick with his plan from last year not to golf at the Maidstone in order to stay on top of his organizing duties. â&#x20AC;&#x153;Myself and the vice president, we just kind of took it upon ourselves to just stick to the side and kind of enjoy the festivities and just make sure everything was running smooth,â&#x20AC;? he explained. â&#x20AC;&#x153;It worked out good. It got us a little more visits with everyone.â&#x20AC;?

Watt is a supervisor for TWB Construction in Maidstone where a generally strong oilfield economy this year is making it easier for the committee to sell sponsorships and round up a wealth of prizes and donations. â&#x20AC;&#x153;When everything is hot, nobody seems to be too shy when it comes to wanting to help out,â&#x20AC;? said Watt.

The steady times in the oil and gas industry will also help tournament golfers raise money at the MS charity tent that sets up on the course and sells 50-50 draw prize tickets. â&#x20AC;&#x153;Last year, we raised some money for MS. We ended up with an extra trip and we raffled it off,â&#x20AC;? said Watt. â&#x20AC;&#x153;I think we raised about $1,500 for MS as well on the side so it worked out nicely.â&#x20AC;?

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CAREER *X×GH Hiring for All Positions + "# comprehensive health and dental benefits + "# $ RRSP contribution package + "# " ' %# # for completing rig crews + (! " # ## ") 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.

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

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S Savanna Energy Services Corp.

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PIPELINE NEWS June 2014

-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 June 2014

Pipeline News was 2 sections this month.

Stay tuned for next month focus: Williston Basin Petroleum Conference