Pipeline News July 2015

PIPELINE NEWS Saskatchewan’s Petroleum Monthly

July 2015

Canada Post Publication No. 40069240

FREE

No Royalty Review Here Page A3

Volume 8 Issue 2

Carbon Capture Test Facility Opens Page B1

Aquistore Holds Ribbon Cutting Page B4

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A2

PIPELINE NEWS July 2015

INSIDE SECTION A 4

CanElson to combine with Trinidad

12 An inside look at Synergy Icon

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18 Golf gods shine on Maidstone

6

Editorial

21 New Alberta energy minister

7

Opinion

22 Lloyd golf preview

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SECTION B 1

Carbon Capture Test Facility opens

12 New pilot truck service launched

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13 Finning to acquire Kramer Cat

6

Crescent buys Legacy

16 Estevan OTS golf tourney

7

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17 Weyburn Oil Show golf

8

Enbridge donates to summer games

10 Neil Roszell Sask Oilman of Year

18 Western Star adds Estevan to its chain 26 Imperial proposed Cold Lake expansion

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

August

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PIPELINE NEWS July 2015

A3

TOP NEWS

The premier checked out some of the big iron at the oil show.

Wremier rad tall speaks to longͲƟme teLJburn oilman taLJne bel͕ leŌ.

No royalty review here: Wall Surface rights legislation delayed to give sector a break

By Brian Zinchuk Pipeline News Weyburn – He wasn’t scheduled to attend, but Premier Brad Wall couldn’t stay away from the Saskatchewan Oil and Gas Show. He attended on Wednesday, June 3, and was able to get in a few brief comments before touring the show.

Those comments sounded a lot like the ones he often said in 20082009, when the then-Progressive Conservative government in Alberta was modifying its resource royalty structure. Now, with a newly-elected NDP government in Alberta planning on conducting its own royalty review, Wall is going with what worked before: promising stability in Saskatchewan.

“I just wanted to say thank you to the industry, to you and all those you know who work in the oil and gas sector in our province,” he started out.

“I want you to know how grateful we are, as a government, and as province, to the sector.

“You know, since 2007, the economy’s been creating about a job per hour, 25 jobs per day, one of the best job creation records in the Dominion of Canada. The reason for this, a big part of that success story, is this sector, and this part of the province of Saskatchewan. So, I just want to say thank you.

“By the way, for our part, we would like to provide a new, bright, competitive environment to do business. We know we can always do better, and will be looking in the next couple days for, perhaps, how we can do better, creating that environment.

The pitch

And that’s when Wall made his pitch, saying, “A couple of announcements: One, Saskatchewan will not be engaging in a royalty review at this time. We think the royalty structure works well for the province in terms of returns to the owners of the resources, the people. Hopefully it’s working for the sector as well.

“I can also confirm something Minister (Bill) Boyd said a few months ago. We were contemplating some updates on surface rights issues by legislation. Someday, those updates need to be made, but they would have presented some significant, not shock, perhaps, but significant change to the sector when you don’t need change; when you’re trying to continue to operate and invest and be here in the province of Saskatchewan. We’re going to continue that delay. We’re mindful changes are needed, but we just think the industry does not need any more changes right now. When we do return to that issue, we’ll do so together.”

“If you happen to be from the province of Alberta, you found us to get here to the show. It’s really easy to find us on a more permanent basis. We have some incentives in the provincial budget you might be interested in.”

The night before Wall’s speech, Pipeline News canvassed a number of prominent local Estevan and Weyburn oilmen on what they would ask the premier. A half dozen agreed on asking for a level playing field, particularly on the application of PST on capital equipment. They feel if a company is coming into Saskatchewan, they can get an incentive, but if you’re based here, you don’t get much.

Asked about this, Wall said, “That’s the kind of feedback that’s helpful to us. I think we are trying to make sure this is as competitive as we can, not just to attract greenfield investment, but what they call brownfield – existing guys that want to stay at their current level of activity, or grow.

“That’s good feedback. I’m sure the minister will be interested.”

CPEC’s impact Crescent Point Energy Corp. has grown to the point where, with the recent acquisition of Legacy Oil + Gas, it will be producing close to one-third of Saskatchewan’s total oil production, with Husky being the other big player. While Husky is a global operator, Crescent Point is not, and is principally focused in Saskatchewan.

Pipeline News asked if we’re getting to the point where Crescent Point is too big to fail?

Wall said, “It’s the oil business we’re talking about, not banking. So that phrase maybe doesn’t apply in certain sectors like where government would step in to save, say, a bank.”

Regarding the southern Saskatchewan oilpatch becoming a de facto company town, with Crescent Point being that company, Wall said, “I heard that. We were talking to some of the guys today. They’ve heard that as well.

“It’s not a bad thing if the company is good. I think Crescent Point has been a great corporate citizen.

It’s a good company to have investing. You know, they announced their recent capex (capital expenditures) a little while ago and have signalled that maybe more is coming. They’re disproportionately investing in the prov-

ince. That billion-dollar tranche they committed to when oil was 50 bucks, I think everyone was thinking ‘Thank goodness they are here,’ because other companies were fleeing.”

In the first quarter, Crescent Point led drilling for all of Canada, and had all but two of its at-times 26 rigs working in Saskatchewan.

Wall said, “I think they were doing some hedging. They were doing it right. How do you take anything but positives away? The only thing that would make it better is if they were headquartered in Saskatchewan.”

Has the premier been speaking to Crescent Point CEO Scott Saxberg about that?

Wall responded, “I think a lot of people in Saskatchewan have. We understand Calgary is the oil capital, the energy capital. So you do business with your colleagues, with the other energy sector companies, the travel issue… I understand completely why you would want to be there, even if most of your activities are in Saskatchewan.

“But we’re always going to ask.

You know, ye have not if ye ask not.

So we’re always going to ask. In the budget, we have new growth tax incentives for the export business, which oil is. We have tax incentives for those who bring new corporate office jobs here. We’ve shared that with Crescent Point, and others. Maybe we’d be able to look at other things.

“I think Mr. Saxberg says Saskatchewan people are making the invitation on a regular basis. I hope they keep doing that. We have 1.13 million ambassadors, so that works out pretty good,” Wall concluded with a smile.

A4

PIPELINE NEWS JULY 2015

BRIEFS

CanElson Carlyle yard.

File photo

Sask turns into a work zone

It was indeed the merry month of May for jobs in Saskatchewan with more people working than ever.

Statistics Canada reported on June 5 there were 582,700 people working in the province in May, up 4,800 for the same month a year ago.

Saskatchewanâ&#x20AC;&#x2122;s unemployment rate was 4.9 per cent in May the lowest among the provinces which extends that distinction to 20 consecutive months.

By comparison, the national unemployment the rate stood at 6.8 per cent in May with Alberta at 5.8 per cent and Manitoba with a 5.7 per cent jobless rate.

Immigration, Jobs, Skills and Training Minister Jeremy Harrison chalks it up the good number for Saskatchewan to the diversity and strength of the economy. â&#x20AC;&#x153;Our economic outlook remains positive â&#x20AC;&#x201C; jobs are up, population is up, and other indicators like exports and wholesale trade are making steady gains,â&#x20AC;? he said in a news release. â&#x20AC;&#x153;Employers in Saskatchewan continue to look for experienced staff. Â To address this issue and fill those vacant positions, our government has placed a priority on providing the resources to update skills and deliver training where it is needed.â&#x20AC;?

Full-time employment in May was up 5,500 jobs or 1.1 per cent from a year ago â&#x20AC;&#x201C; a record high for the month.

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

CanElson to combine with Trinidad Â&#x201E; By Brian Zinchuk Calgary â&#x20AC;&#x201C; Rigs that were built orange or yellow, some of which picked up a tan coat, will now have a new colour â&#x20AC;&#x201C; the greenish blue of Trinidad Drilling.

On June 11, Trinidad Drilling Ltd. and CanElson Drilling Inc. announced an combination worth $505 million. However, while the value of the deal is over half a billion dollars, just a small fraction of that will be paid in cash. Shareholders of CanElson will have the option of receiving 1.0631 Trinidad shares for each CanElson share, or $4.90 in cash. Cash payouts are being limited to a total of $50 million.

While the deal represents a 23.5 per cent premium to the 20-day volume weighted average trading price of the CanElson Shares on the TSX for the period ending June 10, 2015, CanElsonâ&#x20AC;&#x2122;s 52-week high was $8.78 in early July, 2014. That high is also the highest price for stock in the last five years, according to MarketWatch.com.

The $505 million includes the assumption of approximately $36 million in CanElson debt.

The deal is expected to close by the end of August, subject to regulatory and shareholder approval.

The addition of CanElsonâ&#x20AC;&#x2122;s 51 rigs, including six former Totem Drilling rigs and eight former Eagle Drilling rigs, will bring Trinidadâ&#x20AC;&#x2122;s total land rig fleet to 163. That will make the combination the third-largest fleet in Canada and eighth-largest in the United States. Each company also has small joint ventures in Mexico which are included in the 163 total rigs.

A typical Saskatchewan-based CanElson drilling rig operates with a crew of 21 when drilling (four shifts of five, one rig manager). However, of their 13 Saskatchewan-based units, only

five were working in the province as of June 11. Three were near Stoughton and two in the Flat Lake area southeast of Oungre.

All five were working for Crescent Point Energy Corp. On that day, there were 39 drilling rigs active in Saskatchewan. â&#x20AC;&#x153;Our combination with CanElson is a good strategic move for both Trinidad and CanElson. It will create a diverse company with more scale and resources and a solid financial position and an expanded team to lead it,â&#x20AC;? said Lyle Whitmarsh, Trinidadâ&#x20AC;&#x2122;s chief executive officer. â&#x20AC;&#x153;Our combined fleet will be one of largest and most active fleets in North America, with a combined total of 163 land rigs.

If the deal goes forward, two directors from CanElson will join the Trinidad board, Elson McDougald and Dale Johnson to the Trinidad Board, with Don Seimen also adding the board at a later time. â&#x20AC;&#x153;We also expect most of the CanElson management team will also join Trinidad,â&#x20AC;? Whitmarsh said.

CanElson president and CEO Randy Hawkings is among those expected to join Trinidad. â&#x20AC;&#x153;We are also in the process of finalizing the remaining staffing positions, although we expect the majority of CanElson employees will come over to join Trinidad.â&#x20AC;?

Whitmarsh said this will provide the company with a larger, more diverse fleet to meet customer demands. An analyst during the conference call noted that Trinidad had largely gotten away from mechanical rigs in favour of AC-powered rigs. The inclusion of CanElsonâ&#x20AC;&#x2122;s mechanical rigs will bring that design back into greater prominence with the company.

Hawkings said the deal made sense for both sets of shareholders, with two companies with above-average utilization and strong performance. ɸ Page A8

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PIPELINE NEWS July 2015

A5

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By Geoff Lee Pipeline News Bonnyville – With less than three hours before the close of the 2015 Bonnyville & District Oil and Gas Show, Megan Naylor, the show director declared it a success despite the downturn in the oil patch.

“So far, the feedback has been really positive,” Naylor told the Pipeline News with the clock ticking down to the closing hour at the Centennial Centre event venue.

Naylor is the executive director of the Bonnyville & District Chamber of Commerce that runs the shows every two years.

“We have a couple of people say the first couple of hours – meeting some quality contacts – made the whole show worth it already,” she said.

As expected, the official number of registered visitors at the show from June 17-18 dipped 12 per cent to 1,760 compared to 2,559 at the previous show in 2013 when oil and gas prices were higher.

“Attendance is a little bit lower this year based on the economy,” surmised Naylor on the final afternoon of the event.

“We’re still really hopeful and we still have lots of hours left for the rest of the show today, so lots of people can still come in.”

When the final numbers were crunched, the show drew 139 exhibiting companies and raised $9,200 for STARS from gate receipts.

Notably all of the available exhibit space was sold out with a waiting list for the next show in 2017.

“We do have some opportunities to actually expand hopefully our outdoor booth space,” said Naylor, looking ahead.

The next show could see

Kearl expansion VWDUWV HDUO\

Meet this Hawaiian Five-O core organizing crew from the Bonnyville & District Oil and Gas show. (L-r standingͿ͗ Waƫ llan͕ Megan Eaylor͕ Crystal Brazao and Tanya Oliver with buƩerŇy catcher Zobyn Ducharme in the forefront. WŚŽƚŽƐ ďLJ 'ĞŽī >ĞĞ

the introduction of the surf ‘n turf style banquet that the committee couldn’t pull off this year due to reduced sponsorship commitments from oil and gas companies.

Organizers are already kicking around ways to make the experience for exhibitors better than ever in 2017.

“Our number one priority is making our exhibitors happy. They are our customers. They are the ones that are keen. They are very precious,” said Robyn Ducharme, event chair and chamber president.

“Our exhibitors are happy when they are making quality contacts. We are focused on bringing attendees to the show that are of quality for our exhibitors.

“So we are focused on the oilmen’s reverse networking and the attendees coming into the show.”

This year, representatives from Husky Energy, Canadian Natural Resources, Osum Oil Sands, Imperial Oil and Devon commanded the oilmen’s room where exhibitors get to pitch their products and services in a “speed dating” format.

“The oilmen’s room reverse networking that we have is probably our number one hit of the show. Our exhibitors were clamouring to get on to it,” said Ducharme.

“It is just an exhibitor exclusive and something that they all look forward to. It enables them to control the con-

tacts that they’re making at the show. “ The 2015 show featured about a 50/50 mix of new and returning exhibitors which also fits the show goal of the chamber to attract new businesses to the area.

“It helps to spread the word and helps future shows as well, “said Naylor.

Some exhibitors came from as far away as Texas and Ontario seeking new business opportunities.

“We’ve had exhibitors in the past who have actually moved into Bonnyville and done business in Bonnyville because of contacts that they’ve made at the show,” noted Ducharme. ɸ Page A9

Imperial Oil’s $9 billion Kearl oilsands expansion project is on production ahead of schedule and is expected to double overall capacity to 220,000 barrels of bitumen a day.

Production from the expansion project completed with its U.S. parent ExxonMobil Corp. is expected to ramp up to 110,000 barrels per day.

Construction of the Kearl expansion employed a peak workforce of more than 5,000.

Kearl is located about 75 kilometres northeast of Fort McMurray, Alberta and is expected to recover approximately 4.6 billion barrels of bitumen for more than 40 years. .

“Start-up of the Kearl expansion project was achieved with a disciplined focus on safety, project management and operational excellence,” said Rich Kruger, Imperial chairman and CEO in a June 16 announcement.

“The overall Kearl development represents the next generation of oil-sands mining.

“Using Imperial’s proprietary paraffinic froth treatment process, we eliminated the need for an onsite upgrader, significantly reducing greenhouse-gas emissions,” said Kruger.

All three additional froth trains built for the expansion are operational.

The project produces blended bitumen with about the same lifecycle greenhouse gas emissions as the average crude oil refined in the United States.

Briefs courtesy Nickle’s Daily Oil Bulletin

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A6

PIPELINE NEWS July 2015

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.

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

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All the pieces are now in place Itâ&#x20AC;&#x2122;s taken a decade and a half, but Saskatchewan has put together the pieces necessary for a comprehensive strategy for carbon capture and storage. The implications for this could be massive, not only for Saskatchewan, and Canada, but the world.

Fifteen years ago the Weyburn-Midale project started using carbon dioxide collected from the Dakota Gasification plant at Beulah, N.D., for enhanced oil recovery. Pumping COh underground at high pressure in what is known as a miscible flood results in the carbon dioxide acting like a solvent. It washes oil from the reservoir rock. This tertiary form of oil recovery has already greatly extended the life of an oilfield first drilled in the 1960s and expected to be dry long ago. When EOR recovery efforts are over, the COh used will be left underground, presumably forever. The International Energy Agency did extensive scientific work on this front to establish it should do exactly that. Thus, we have the â&#x20AC;&#x153;storage component.â&#x20AC;?

As for carbon capture, last fall saw the opening of the Boundary Dam Integrated Carbon Capture and Storage Project. It is the first commercial-scale capture plant of its type in the world. The capture portion of it was about $1 billion, out of a total $1.467 billion. They are still working some of the kinks out of it, but it has already successfully captured hundreds of thousands of tonnes of COh and pumped it down the 70 kilometre pipeline to the Cenovus-operated Weyburn unit.

But not all point sources of carbon dioxide have the benefit of a nearby depleted oilfield into which they can dispose captured COh. In May we saw the ribbon-cutting for the Aquistore project, which is injecting Boundary Dam-supplied COh into deep saline aquifers. These aquifers are much more prevalent throughout the world, and would provide repos-

itories for captured carbon dioxide for a much broader range of locations. Aquistore is worth $30 million.

While Boundary Dam is the first generation of large-scale capture facilities, SaskPower and Mitsubishi Hitachi Power Systems are already working on the next. The key element is the amines, the chemical used to capture the COh in large scale plants. In late June the grand opening was held for the Shand Carbon Capture Test Facility, a $70 million project to test the next generation of amines.

Other work over the years done in Saskatchewan has included the lab-bench scale International Test Centre for Carbon Capture, now called the Laboratory for Carbon Capture and Low-Carbon Energy Research. While it is now defunct, the International Performance Assessment Centre for the Geologic Storage of carbon dioxide (IPAC-COh) was established to develop standards that could be applied not just in Canada, but globally, for measuring COh stored underground and attributing credits for it.

The Petroleum Technology Research Centre (PTRC) has been a key player in many of these developments, including the science portion of the Weyburn-Midale project and Aquistore.

What it comes down to is this: we not only know how to capture carbon dioxide, move it someplace else, store it forever and even make money while doing it, we are actually accomplishing all the above. While others speak until they are blue in the face about emissions reductions targets, we have been actually doing something about it. Coal and oil are not going away any time soon, and China is continuing to build coal plants at a rapid pace. These numerous strategies allow the world to continue using fossil fuels and largely mitigate, not just reduce, the impact.

Instead of lecturing Saskatchewan, and Canada, maybe some other countries should follow our lead.

PIPELINE NEWS July 2015

From the Top of The Pile

A7

OPINION

By Brian Zinchuk

It seems everyone has a Kramer story I was quite distraught to hear that Kramer Ltd., Saskatchewan’s Caterpillar dealer for 70 years, is being sold to Finning. While Finning is the largest Cat dealer in the world, it is so big it’s unrealistic to expect the same sort of personal touch Saskatchewan has known all our lives with the Kramer family.

From the perspective of Pipeline News, whenever I called them up, asking to do a story, I was rarely disappointed. Several times I sat down with Kramer president Tim Kramer and talked about the business, pipelining, and whatever was our focus for the month. But my history with Tim Kramer goes back much, much further than that.

It seems everyone had a Kramer Ltd. story.

Here’s mine: In 1997, I flunked out of the mechanical engineering program at the University of Saskatchewan after several years of floundering studies. My step-dad, Brad Stroud, had gotten me into unionized pipeline construction as a summer job. It soon became my primary line of work. But there was a problem.

I realized that there is little incentive for experienced operators to teach younger people, like myself, how to operate equipment proficiently.

Each person they trained was another person in direct competition for the limited jobs available.

So sitting at Louis’ Bar at the U of S campus (drinking Diet Coke) and talking to some friends, I cooked up the idea of a virtual reality training simulator to teach people how to operate heavy equipment. Specifically, we would target excavators, also known as trackhoes, because they were one of the most useful pieces of heavy equipment

and a growth area. I convinced my best friend, Jason Coutu, to be my partner and do the programming part, while I focused on design, concepts and corporate work.

We were able to secure a few thousand dollars of federal research and development money, and with that and whatever meager dollars we had between us, we built a proof-of-concept prototype.

The prototype consisted of a full, to-scale mockup of a Caterpillar 322 excavator cab. The authentic chair alone cost $6,000. Instead of hydraulic controllers, we used computer joysticks.

Since 40-inch flat screens were around $20,000 a piece at the time, we opted for a very early virtual reality headset. By modifying an existing computer game, we were able to show how you could use its 3D graphics, virtual reality projection, and this cab mockup to dig a small hole in cyberspace.

We then took it to Regina to show Tim Kramer. He grabbed his top guy in Regina, and the two of them sat in my mobile showroom, my ’82 Ford camper van with the bed taken out. Tim was so impressed he personally made arrangements for us to present this to the head of Caterpillar training at their proving grounds south of Tuscon, Arizona, during the week of the massive ConExpo 1999 trade show, held in Las Vegas.

That’s a pretty important introduction for two college dropouts with no money and nothing but a startup idea, back before startups became sexy.

The head of Caterpillar training tried it out for ten minutes. He told us, “Great idea, huge market, we won’t give you money.”

After several more years of trying and failing to raise funds, the project eventually died. Jason

went back to school, got his bachelors, then masters degree in computer science. I continued pipelining for a while, then in 2003, switched back into newspapers full time.

The virtual reality simulator for excavators was too good of an idea to not be developed by someone. We had grossly underestimated how much it would cost do develop, and we were an utter failure in raising capital. We were simply too far ahead of our time, technology-wise. It was more than a decade later when you started seeing simulators similar in design to what we had conceived.

The difference is these simulators use now-inexpensive large screens. Virtual reality headsets, like the much-ballyhooed Oculus Rift still have not caught on, 16 years later.

But if you want to see what we had conceived, go to www.catsimulators.com. Cat Simulators is the company that eventually did secure Caterpillar’s cooperation and brought the concept to fruition. About 90 per cent of what you see there, I have notes for in my logbooks from 17 years ago.

So what does this have to do with Tim Kramer? He took and interest, and a chance, on us. He could have easily dismissed us, like so many others did. But he didn’t. He made that connection and opened the door for us in a way no one else did.

And for that, I will be forever grateful.

I hope he enjoys his retirement.

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

Lee Side of Lloyd

By Geoff Lee

Whither oil, a guessing game

Predicting the price of oil and when it will recover is a total waste of time except for those who like to give it a shot regardless of being wrong.

Not even Nostradamus, who had a pretty good record at foretelling future events in his day, would get it right today with so many pricing factors at play, but many keep trying.

Remember when Jeff Rubin, a former chief economist at CIBC guessed oil would go to over $200 a barrel after it hit a high of $147 in 2008? He was wrong as the price fell back.

He wrote a few books, too, about his predictions that were out of date before they hit the market.

Pick a number and you could be right. How about $100 a barrel by July 1? Let’s go with that as it will make everyone feel happy with summer underway.

Actually one of the best predictors is Pipeline News. Oddly, our monthly page count seems to roughly reflect the price of West Texas Intermediate oil.

We often had over 100 pages back in the day when oil was over $100 a barrel. This month we could be spot on again with our page count.

Don’t take this to the bank though. If predictions are all about hope, then go for $100 a barrel by

November instead of July to extend those hopeful feelings a few more months.

If you like drama and fear, then select $22 a barrel by August at your own risk.

Predictions sell books and news stories, but daily reality is the only accurate guide. You can’t plan for something that may not occur or shows little sign of occurring.

Can you hire back 20 employees because an analyst forecasts $80 a barrel by October? Nope.

There are so many factors in oil pricing and most of them relate to Keynesian economics of supply and demand.

Right now, demand is weak while there is too much supply.

Summer driving in North America will help push up the demand for gasoline, but a big price swing in oil needs to see strong demand from countries like India and China.

Something also needs to happen to lower the supply level and that wild card could be a geopolitical one too.

Fear and greed tend to drive the stock markets with fear also bringing temporary oil price relief.

It seems that sooner than later more OPEC producing countries will be directly affected by the rising tide of terrorism in the Middle East that could be a game changer for oil demand and supply.

The U.S. coalition could also put troops on the ground in Iraq or Syria and that would ratchet up with fear factor in oil prices.

That’s my personal prediction given the ISIS incursion into the oilfields of Syria and the threat that imposes to the West.

Let’s hope those scenarios don’t play out which leaves meteorites, tidal waves and earthquakes as unlikely candidates to quickly stir up the oil price pot.

Basically, it comes down to supply and demand and the current oversupply is what everyone cites as the cause of the current downturn in pricing and oilfield activity.

The solution would be for industry to sustain supply at the same relative level of demand to prevent boom and busts that are job killers.

Sustainable development is likely a hard swallow especially for publicly-traded producers who tout production growth to investors on a quarterly basis.

Matching production to meet demand would be less costly than the current massive cuts to capital spending and jobs due to the oversupply of oil in the world.

Sustainability may be an idea whose time has come, but I’m not predicting that will ever happen.

Tomorrow is another day though.

A8

PIPELINE NEWS July 2015

LETTER TO THE EDITOR

Government hasnâ&#x20AC;&#x2122;t saved a dime: Witherspoon Dear editor, We all know how this government loves to pat itself on the back for spending record amounts, even when it comes to failed projects like smart meters or misplaced priorities such as an unprecedented amount being spent on consultants, but the truth is, Saskatchewan is being pushed further into debt, and nothing has been set aside for the future.

In this yearâ&#x20AC;&#x2122;s budget, the Sask. Party government plans to spend more than $14 billion and borrow $700 million. In the process, is increasing debt by another $1.5 billion. As it stands, Saskatchewan is sitting on $13.2 billion in debt, and that doesnâ&#x20AC;&#x2122;t even include pension debt.

After nearly a decade of record revenues, driven by the resource sector, you would think that the government would pay down a bit of debt.

Unfortunately, we are seeing just the opposite from the Sask. Party.

Saskatchewanâ&#x20AC;&#x2122;s debt has increased every single year. Between the 2009-2010 fiscal year and the 2015-16 fiscal year, the Sask. Party increased the debt every year as follows: $8.8 billion, then $9.1 billion in 2010-11, then $9.5 billion, $9.6 billion, $10.45 billion, $11.8 billion, and, finally, for 20152016: $13.2 billion. That rate of increase is absolutely unacceptable.

As for savings â&#x20AC;&#x201C; this government hasnâ&#x20AC;&#x2122;t saved a dime. In fact, it keeps tapping into the growth and financial security fund, more commonly known as the rainy day fund. This government is withdraw-

ing another $255 million from the fund this year.

In 2009-10, there was $1.35 billion in that fund, but the government has spent $1.15 billion of that, draining it further year after year.

At the rate this government is spending, not only will we not have anything left in the rainy day fund, but we wonâ&#x20AC;&#x2122;t have much to show for it besides more Lean consultants, Japanese senseis and a stack of debt.

We have seen the premier and finance minister refuse and fail to start a heritage fund - a savings fund that would make Saskatchewanâ&#x20AC;&#x2122;s economy more stable, and more prosperous for the longterm.

For nearly a decade, this government has enjoyed economic prosperity. We can and should have the best schools, excellent hospitals and better roads than ever before. But, sadly, what we are seeing is lousy spending decisions focused on misplaces priorities, which is leaving us all with overcrowded classrooms in schools that are being propped up by two-by-fours, crumbling hospitals, and roads that often arenâ&#x20AC;&#x2122;t safe for families, workers or emergency vehicles.

This government needs to start taking the debt and savings issues seriously, and start spending on things that really matter to people.

Trent Wotherspoon, MLA NDP Deputy Leader Regina

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CanGas seen as a value-add

Éş Page A4 Redundancies are expected to be low, and just $10 million is expected to be found in synergy savings in 2016, half of that in operations. This is primarily in terms of corporate administration and yards. Trinidad, it was noted, had already gone through rounds of cuts and wage rollbacks.

Upon completion of the transaction, on a fully diluted basis and assuming the maximum cash consideration is elected, current Trinidad shareholders will own approximately 60 per cent and CanElson shareholders will collectively own approximately 40 per cent of the combined company.

Whitmarsh noted the deal came from a mutual â&#x20AC;&#x153;sit-down and letâ&#x20AC;&#x2122;s see if any of this makes sense.â&#x20AC;? â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;ve been working on this for six months.â&#x20AC;?

That would also correspond with the cratering of oil prices, which hit a six-year low in January.

When asked about that, Hawkings said the synergies and opportunities were not affected by the oil price, but their day rates have. Going forward, with a strong fleet and strong team of people, the company is positioned to expand when things do pick up.

Whitmarsh added, â&#x20AC;&#x153;I think itâ&#x20AC;&#x2122;s a fair comment that the deal is about the future; the future of what the combined entity will look like, what we can do in the marketplace, the return we can get for our shareholders. While we all look at whatâ&#x20AC;&#x2122;s going on in the market today, we manage our business according to whatâ&#x20AC;&#x2122;s coming at us. Certainly this deal is about what we can do going forward much more than the current share price or oil price, back six months ago.â&#x20AC;?

Asked if this is an exit strategy for CanElson investors, Hawkings said he and the insiders are taking Trinidad shares. â&#x20AC;&#x153;The management team is committed, the insiders, but I canâ&#x20AC;&#x2122;t speak to the rest of the investors,â&#x20AC;? he said.

Regarding the impact in southeast Saskatchewan and Manitoba, Hawkings said, â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;ve competed head-to-head with Trinidad rigs. Weâ&#x20AC;&#x2122;ve worked for similar customers down there. We anticipate that we will just keep carrying on and continuing to service that area of southeast Saskatchewan and southwest Manitoba without change.â&#x20AC;?

CanElsonâ&#x20AC;&#x2122;s CanGas compressed natural gas business is expected to continue. Hawkings noted that both Trinidad and CanElson have rigs capable of running on natural gas, and customers continue to ask for that service, allowing them to use their own gas on their own rigs. â&#x20AC;&#x153;Customers we are currently working for consider it a value-add,â&#x20AC;? he said.

The Estevan SJHL team has, for the previous several years, been known as the â&#x20AC;&#x153;CanElson Drilling Estevan Bruins,â&#x20AC;? with the drilling company as the name sponsor for the team. This followed on from the â&#x20AC;&#x153;Eagle Drilling Estevan Bruins.â&#x20AC;? Bruins head coach and general manager Chris Lewgood said the team is working on its sponsorship for next year.

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PIPELINE NEWS July 2015

A9

"Everybody looking for an opportunity" ɺ Page A5 “Having businesses come from out of town, it shows them the potential of what we have out here for opportunities. It shows them there is potential to do business out here.”

Bonnyville’s CAO Mark Power is decidedly bullish on the economic impact of the biennial oil shows, but more so this year based on his comments just before the doors opened on June 17.

“I think it will have a significant impact.

Right now with the downturn in the economy everybody’s looking for an opportunity,” he said.

“That’s what the oil and gas show is all about. There is going to be lot of opportunities for businesses to show their stuff. I think it will have a very positive impact this year.”

The show got under way following a recent update by Imperial Oil

Service with a smile is what 86 year-old volunteer Russell McAllister delivered along with treats to outside exhibitors during his shiŌ at the Bonnyville oil show. McAllister represented St. :ohn͛s hnited Church one of several chariƟes that will receive a cheƋue from Lakeland Credit hnion the sponsors the volunteers.

that their $2 billion Nabiye thermal heavy oil project near Cold Lake is ramping up to capacity of 40,000 barrels a day in 2015.

The project was producing 20,000 bpd in May using cyclic steam stimulation and will push Imperial’s Cold Lake operations to a combined total of 192,000 bpd at capacity.

“The announcement

by Imperial Oil on the Nabiye expansion is really good news,” said Power.

“We won’t start seeing the impact of that for a couple of years, but at least it’s a piece of positive news, so we are all pretty excited.”

As for the downturn Power said, “I think everyone’s cautiously optimistic. Everybody’s hoping this fall there will be some announcements with regards to new capital spending by some of the oil companies.

“I think the price of oil remaining steady and the spread between Western Canadian Select and West Texas Intermediate is a good sign.”

Osum Oil Sands Corp. hosted a welcome barbecue for exhibi-

Devon and Husky were two of Įve regional heavy oil producers that hosted the popular oilmen͛s room during the Bonnyville oil show. Reps from producing companies listened to sales pitches from show exhibitors who hope to land business opportuniƟes for their products and services.

tors at Shaw Centre the evening of June 16 at the start of a two week turnaround at their Orion thermal heavy oil facility.

Osum purchased Orion from Shell Canada last June for $325 million and reached full production of 10,000 bpd in December.

The plant is approximately 18 kilometers southwest of Osum’s Taiga project, which has received regulatory approval for the construction and operation of a 35,000 barrel per day facility.

In May, Osum filled an application with the Alberta Energy Regulator to construct four new pads at Orion to

increase handling capacity on the existing site.

Those who attended this year’s oil show experienced a boom in road works and retail, commercial and housing construction going on around town.

“There is construction going on all over town. One thing that our council to was that we were going to continue with our capital spending,” said Power.

“Of course, we’ve got a different source of revenue than most of the oil companies around here. We were successful with getting a couple of our grants in place.

“The provincial government keep the

municipal sustainability money in place for 2015, and we committed to spending it on 51st Ave. We did two overlays and a rebuild of a service road in town.

“In the west end of town, we’re finishing the paving on the Hammond’s Industrial subdivision.”

Five or six projects are also in full swing in the Eastgate subdivision near the Centennial Centre oil show venue.

Ongoing work includes the construction of a Boston Pizza and a Microtel hotel adjacent to a new Comfort Inn that just opened and a McDonald’s restaurant that opened in December.

A10

PIPELINE NEWS July 2015

Online auction thrives in downturn Â&#x201E; By Geoff Lee Calgary â&#x20AC;&#x201C; Hard times in the oilpatch are proving to be good times for Energy Auctions Inc., a growing online auction and brokerage business based in Calgary.

Capital spending cuts by producers due to low world oil prices have increased buyer demand for used or socalled field run oil and gas production process equipment that Energy Auctions specializes in. â&#x20AC;&#x153;Theyâ&#x20AC;&#x2122;re buying just due to the economy,â&#x20AC;? said Marlon Ellerby. president of the Energy Auctions that is co-owned with his wife Janet with Marlon being the spokesperson. â&#x20AC;&#x153;Theyâ&#x20AC;&#x2122;re looking for field-run used stuff because itâ&#x20AC;&#x2122;s cheaper right now than buying new so theyâ&#x20AC;&#x2122;re trying to shop to get the best bang for their buck,â&#x20AC;? he said. â&#x20AC;&#x153;I do also have manufacturers that I sell for that have new surplus â&#x20AC;&#x201C; if they have too many tanks in stock

â&#x20AC;&#x153;We can take a tank thatâ&#x20AC;&#x2122;s sitting in Minot, North Dakota and we can sell that tank tomorrow morning in two hours.

I can set it up ... and everybody in the world can get online and bid on that tank.â&#x20AC;?

- Marlon Ellerby, President, Energy Auction or too many separators or whatever. â&#x20AC;&#x153;They will phone me and I will sell that as if itâ&#x20AC;&#x2122;s new, but the bulk of my equipment that I sell is field run.â&#x20AC;?

Oil and gas separators, tanks, pumpjacks and treaters are selling quickly mainly to producers who are focused

on cost efficiencies. â&#x20AC;&#x153;I think probably the biggest thing is the amount of wells still. Itâ&#x20AC;&#x2122;s so much more cost-effective to maintain production to keep producing, than it is to buy production by drilling new wells,â&#x20AC;? said Ellerby. â&#x20AC;&#x153;Anything thatâ&#x20AC;&#x2122;s out

Marlon Ellerby is the president of Energy AucĆ&#x;ons /nc. co-owned by his wife :anet.

The couple is pictured at their booth at the last Lloydminster heavy oil and gas show.

The company specializes in liĆ&#x2039;uidaĆ&#x;on aucĆ&#x;ons with the focus on producĆ&#x;on process eĆ&#x2039;uipment. WĹ&#x161;Ĺ˝Ć&#x161;Ĺ˝ Ć?ĆľÄ?ĹľĹ?ĆŠÄ&#x17E;Ä&#x161;

there thatâ&#x20AC;&#x2122;s producing, they need to keep it going.â&#x20AC;?

Over 75 per cent of Ellerbyâ&#x20AC;&#x2122;s customers are brokers who buy the equipment online and resell it knowing they can still make a profit after he takes a set fee. â&#x20AC;&#x153;I broker quite a bit more than I auction,â&#x20AC;? said Ellerby. â&#x20AC;&#x153;I think the big thing is, that way that I deal with my customers is, we find a fair market value for their product and I take a set fee. â&#x20AC;&#x153;That way when the broker comes along and buys it off our auction, heâ&#x20AC;&#x2122;ll know that thereâ&#x20AC;&#x2122;s a little bit of meat left on the bone when he

sells it. â&#x20AC;&#x153;I think the auction is a good way to go for a producer or anybody with surplus because I can go in there, and between me and the seller, we can set a set price.â&#x20AC;?

Ellerby relies on formulas to determine fair market value off of new prices and broker knowledge of the market to set prices. â&#x20AC;&#x153;Theyâ&#x20AC;&#x2122;re the ones out there just like I am. We have a very good idea of where the marketâ&#x20AC;&#x2122;s at. Thatâ&#x20AC;&#x2122;s the name of the game. Itâ&#x20AC;&#x2122;s all economics,â&#x20AC;? he said.

Energy Auctions sells oil and gas production process equipment to buyers from around

the world who register for free to bid on his online auction website.

Equipment is sold during timed auctions similar to eBay with short auctions for oneoff items and monthly one day sales with multiple lots and bidders.

Convenience is probably the biggest advantage for sellers who come to Energy Auctions that markets itself as a one stop shop. â&#x20AC;&#x153;I think the biggest thing is â&#x20AC;&#x2DC;sold as is, where it isâ&#x20AC;&#x2122; so thereâ&#x20AC;&#x2122;s no freight involved. Thereâ&#x20AC;&#x2122;s no logistics set up to get the thing to my yard or whatever. Thereâ&#x20AC;&#x2122;s none of that,â&#x20AC;? said Ellerby. ɸ Page A11

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PIPELINE NEWS July 2015 Éş Page A10 Itâ&#x20AC;&#x2122;s up to the buyer to pick up their purchase, but Ellerby handles everything from listing, cataloguing and photographing equipment to writing product descriptions.

In Western Canada, most of his business is targets clients in Alberta and Saskatchewan with growth coming from Manitoba and North Dakota and beyond. â&#x20AC;&#x153;I sell a lot of jacks, kind of thirty party, down into Wyoming, Colorado and Texas,â&#x20AC;? said Ellerby.

Energy Auctions is linked to anyone in the world with an Internet connection including customers in China who invited him to speak at a shale gas summit in China in the fall.

When contacted on June 9, Ellerby was preparing to speak with his Chinese contacts at the Global Petroleum show in Calgary the following day. â&#x20AC;&#x153;Iâ&#x20AC;&#x2122;ve been approached to expand a bit more into China with the auction service part of it. I am looking at translating my website to Chinese,â&#x20AC;? he said. â&#x20AC;&#x153;Even within their own provinces, they can use our services.â&#x20AC;?

Ellerby gives credit to his Calgary based IT provider, Gratisies Inc. for creating a software platform the provides many ways to market and auction equipment online internationally. â&#x20AC;&#x153;We can take a tank thatâ&#x20AC;&#x2122;s sitting in Minot, North Dakota and we can sell that tank tomorrow morning in two hours,â&#x20AC;? said Ellerby. â&#x20AC;&#x153;I can set it up for tomorrow morning for two hours and everybody in the world can get online and bid on that tank.â&#x20AC;?

Aside from online auctions, Energy Auctions has a third part shop where customers can design, build or refurbish a variety of oil and gas products.

The company also offers contracted licensed realty services for complete commercial and business listings.

Ellerbyâ&#x20AC;&#x2122;s office is his truck that he drove to the Saskatchewan Oil & Show held in Weyburn June 3-4 to proactively

market his business to producers and service companies. â&#x20AC;&#x153;For the most part it was good. I canâ&#x20AC;&#x2122;t say it was positive but it was good,â&#x20AC;? he said about the mood with low oil prices slowing oilfield activity. â&#x20AC;&#x153;Guys are continuing on just like here (Calgary). In Lloyd, itâ&#x20AC;&#x2122;s all the same and everywhere else around the world, itâ&#x20AC;&#x2122;s slowed down considerably,â&#x20AC;? he said.

While in Weyburn he touched base with some of his best clients. â&#x20AC;&#x153;Iâ&#x20AC;&#x2122;ve done some pretty big business with Enerplus down in that area, so we took those guys out to one night for supper and sat around and visited with their operators and everything. It was good. â&#x20AC;&#x153;Theyâ&#x20AC;&#x2122;re talking about doing a little bit more here come June and July.â&#x20AC;?

The downturn has been good for Energy Auctions just as it was in â&#x20AC;&#x2122;08 when he launched a concept business model as the pipeline coatings company he worked went broke.

With his background auctioning cattle online, he set up an online auction site to liquate the companyâ&#x20AC;&#x2122;s oilfield equipment and then set out on his own with steady sales. â&#x20AC;&#x153;Thatâ&#x20AC;&#x2122;s the unfortunate part of this thing.

Thereâ&#x20AC;&#x2122;s good and bad.

Weâ&#x20AC;&#x2122;re busy,â&#x20AC;? he said somewhat apologetically. â&#x20AC;&#x153;One of the reasons why I do well in southern Saskatchewan with Enerplus is the convenience of it. Itâ&#x20AC;&#x2122;s set up for the juniors and the intermediates. â&#x20AC;&#x153;They donâ&#x20AC;&#x2122;t have to do anything. They just tell me itâ&#x20AC;&#x2122;s for sale. â&#x20AC;&#x153;I do a ton of the business with the big guys as far as selling their equipment, but I donâ&#x20AC;&#x2122;t sell very often to the big guys. The juniors and the intermediates are the companies that I target. â&#x20AC;&#x153;Thatâ&#x20AC;&#x2122;s the niche that I fit into.â&#x20AC;?

As for comparing the downturns of â&#x20AC;&#x2122;08 and this year, Ellerby thinks this one is worse. â&#x20AC;&#x153;I think the biggest thing is that this thing hit almost within 24 hours,â&#x20AC;? he said. â&#x20AC;&#x153;Just boom â&#x20AC;&#x201C; it hit

before Christmas or whenever that was and the whole world just kind of stopped. Then look at how fast the price dropped, so it took a lot of guys off guard. â&#x20AC;&#x153;It shocked a lot of guys and put a lot of companies into a bad position with a lot of stock.â&#x20AC;?

Ellerby noted that the online auction market is not strong for all types of oilfield equipment as companies try to hold out for better returns. â&#x20AC;&#x153;I think everybodyâ&#x20AC;&#x2122;s hanging off liquidating everything or anything because they donâ&#x20AC;&#x2122;t want to give it away,â&#x20AC;? he said. â&#x20AC;&#x153;Theyâ&#x20AC;&#x2122;re just waiting to see what this thingâ&#x20AC;&#x2122;s going to do now that the breakup is over and everybodyâ&#x20AC;&#x2122;s going to start to do a few projects. â&#x20AC;&#x153;I know thereâ&#x20AC;&#x2122;s a few drilling rigs out starting to pick back up again. Thereâ&#x20AC;&#x2122;s a lot of equipment out there right now. â&#x20AC;&#x153;Buying at an auction is different than just buying it because of course, you have to be so diligent in what youâ&#x20AC;&#x2122;re buying like with pressures and sizes and everything. â&#x20AC;&#x153;I tell them to go and inspect it or send an inspector for $500. They can save you a pile of money.â&#x20AC;?

Ellerby said what he calls â&#x20AC;&#x153;commodity stuff â&#x20AC;?

like pumpjacks and tanks sell well online because every well site needs that equipment while pressure vessels are tough to auction.

As for why compa-

nies do business with him Ellerby puts it down to building honest relationships with his customers and fair pricing in booms and busts. â&#x20AC;&#x153;They can trust me.

A11

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A12

PIPELINE NEWS July 2015

PIPELINE NEWS July 2015

A13

Synergy Credit Union CEO Glenn Stang led a tour of the companyÍ&#x203A;s head oĸce in Lloydminster on May 26 with assistance by EllisDon the main contractor.

Randy GlynnÍ&#x2022; faciliĆ&#x;es manager discusses the duct work on an upper Ĺ&#x2021;oor of the new Synergy Credit hnion building with Wat HortonÍ&#x2022; chief innovaĆ&#x;on and people oĸcerÍ&#x2022; and Glenn Stang CEO during a site tour.

+RXUV

The spacious ground level inside the four storey building features a sweeping staircase to the upper level of oĸces. A cafÄ is being constructed on the main Ĺ&#x2021;oor for customers. WĹ&#x161;Ĺ˝Ć&#x161;Ĺ˝Ć? Ä?Ç&#x2021; 'Ä&#x17E;Žč >Ä&#x17E;Ä&#x17E;

An inside look at Synergy icon Â&#x201E; By Geoff Lee Lloydminster â&#x20AC;&#x201C; Synergy Credit Union hosted a tour for Pipeline News on May 26 of its new $23.5 million flagship building under construction in Lloydminster.

The 60,000 sq. ft., four storey building is being constructed by EllisDon with an expected fall completion date, weather and available labour permitting.

The building will house Synergyâ&#x20AC;&#x2122;s core retail, business banking and wealth management services for its 28,000 members serving 11 communities.

The facility is conveniently located at the corner of 50th Avenue and 43rd Street close to the intersection of Highways 16 and 17 and can be seen from any direction.

The facility is designed by aodbt architecture + interior design to adapt to changing technologies with minimal costs.

That means the use of modular DIRTT walls that are engineered and pre-manufactured to make future renovations to the interior easy to complete without having to rip down walls.

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The moveable walls also incorporate modular plug and play electrical systems.

A 16-inch raised flooring system allows for easy access to wiring, ducting and plumbing for possible changes or upgrades down the road.

Synergy is also focused on enabling banking by mobile devices such as cellphones that their oil and gas customers use daily on the job.

The ground floor will include a cafĂŠ, an innovation centres and a pop up retail feature for new businesses to promote themselves.

The third and fourth floor will be leased.

Synergy is hoping to achieve silver Leadership in Energy and Environmental Design or LEED certification with the building.

The LEED standard takes into account sustainable site development, water and energy efficiency, material selection and indoor environmental quality.

The building makes extensive use of fritted glass on the exterior to assist with the cooling of the interior space.

All of the mechanicals for the building are housed on the roof and protected from the elements.

Kim Leipert

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A14

PIPELINE NEWS July 2015

Synergy tower aims to go mobile

By Geoff Lee Lloydminster – Think of the new $23.5 million Synergy Credit Union building under construction in Lloydminster as a 21st century bricks and mortar bank on wheels.

The 60,000 sq. ft. flagship building near the intersection of Highways 16 and 17 is designed to adapt to changing technology with a focus on providing mobile banking services sooner than later.

“All the services we are going to be providing in the future to our members will provide easier access to their information, and almost all that access is going to go through their mobile phones,” said Synergy’s CEO Glenn Stang.

“That’s why we were kind of hoping we could have a mobile service within our credit union so that we give easy access for members to the tools that they need to access their accounts.

“We’ve been in contact with many companies

waiting for proposals. It may be not coming as fast as our building might open, but it’s a thought that we’re not going to let go.

“We’re going to continue to pursue it into the future.”

Stang noted mobile communication is the way everything is going including Synergy’s clients who work in the oil and gas industry.

“All their work is on the road, so they want to be able to access their financial information when they are on the road and have quick conversations with our staff. You can do that on mobile services,” he said.

“Take as an example, iPhone FaceTime, so you can actually do video conferencing services. So we’re set up to do that soon.”

Having that technology available would enable Synergy to compete for new customers who currently bank elsewhere with mobile devices.

“It goes hand-in-hand. It’s easy access to their information . That’s what it’s all about,” said Stang about mobile banking.

Stang spoke about the technology vision for Synergy during a tour of the construction site at 50th Avenue and 43rd Street with a group of company officials on May 26.

Syngery’s chief innovation and people officer, Pat Horton talked about when the building might be open for business with construction noticeably in the advanced stages of completion.

“We haven’t set a date for an opening yet. I’m anticipating probably October or early November,” said Horton.

“We should get building turned over to us by the end of August or September. Then, we’ll have our own work to do to get it ready to open to the public.” ɸ Page A15

PIPELINE NEWS July 2015 Éş Page A14 A previously anticipated summer opening was pushed back with the usual suspects being weather and labour according to facilities manager Randy Glynn. â&#x20AC;&#x153;We did have some glitches for sure. Some things you just canâ&#x20AC;&#x2122;t help.

We canâ&#x20AC;&#x2122;t control the weather,â&#x20AC;? he said. â&#x20AC;&#x153;We canâ&#x20AC;&#x2122;t control our conditions, but with the new crews that we have onsite and the new management that we have onsite, things have been really looking up and moving forward in a positive direction and think itâ&#x20AC;&#x2122;s been wonderful. â&#x20AC;&#x153;I get lots of questions as to when are we going to be open and what does it look like inside, especially seeing as much glass as itâ&#x20AC;&#x2122;s got. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s a shining pillar right on the corner of (Highways) 16 and 17. Everybody who comes through town, no matter which direction theyâ&#x20AC;&#x2122;re going sees it. Itâ&#x20AC;&#x2122;s a big icon.â&#x20AC;?

The new building will initially house between 70 and 85 employees with the top two floors to be leased to a tenant yet to be signed up.

What looks like a fifth floor roof penthouse encloses the rooftop mechanicals.

Soil remediation work is underway on the site of Synergyâ&#x20AC;&#x2122;s drive through bank across the street from the main building. â&#x20AC;&#x153;They need to get the compaction right for the drive through, so the pavement stands up to the traffic going through there,â&#x20AC;? said Horton, who

A15

Synergy Credit UnionÍ&#x203A;s Randy GlynnÍ&#x2022; faciliĆ&#x;es managerÍ&#x2022; Glenn StangÍ&#x2022; CEO and Wat HortonÍ&#x2022; chief innovaĆ&#x;on and oĸcerÍ&#x2022; took a photo op in front of their new Ψ2ĎŻ.Ďą headĆ&#x2039;uarters nearing the end of construcĆ&#x;on.

noted the quality of work in the main structure is good. â&#x20AC;&#x153;I am very pleased with our consultants and inspectors that have been on the job. I think theyâ&#x20AC;&#x2122;ve been doing a pretty thorough job,â&#x20AC;? he said. â&#x20AC;&#x153;Things that need remediation, they identify them and they are getting done. It should be good.â&#x20AC;?

Stang said the new four-storey office building is already having a big economic impact on Lloydminster. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s just bringing a whole new vibrance to the downtown core,â&#x20AC;? he

said. â&#x20AC;&#x153;I think that coupled with the couplet that the city is developing, will really put the downtown back on the map as a destination.â&#x20AC;?

That North-South Corridor project will eventually convert 50th Avenue to a one way southbound route and 49th Avenue to a one way northbound route with access to the credit union from both directions.

The landmark facility will house Synergyâ&#x20AC;&#x2122;s core retail, business banking and wealth management services for

its 28,000 members in 11 communities. â&#x20AC;&#x153;For us, we are very big in economic development,â&#x20AC;? said Stang. â&#x20AC;&#x153;We support a lot of small business thatâ&#x20AC;&#x2122;s oil related, so Iâ&#x20AC;&#x2122;m hoping we penetrate more of that marketplace with the opening of this building.â&#x20AC;?

Construction began over a year when the oil industry was booming, but Stang said the current downturn is little cause for worry in the long term. ɸ Page A17

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PIPELINE NEWS July 2015

PIPELINE NEWS July 2015

It's all been relatively good news Éş Page A15 â&#x20AC;&#x153;We stay in those markets even on down cycles because we are used to this up and down cycle,â&#x20AC;? he said. â&#x20AC;&#x153;We live in this community, we work with our people, and we never shy away from the tough times. â&#x20AC;&#x153;Thatâ&#x20AC;&#x2122;s what credit unions are all about. We are here to support our community. We are here to support our businesses. â&#x20AC;&#x153;We are not seeing any increased delinquency that people think you might in a downturn economy. â&#x20AC;&#x153;I think part of that is people just plan better, so itâ&#x20AC;&#x2122;s actually been business as usual.â&#x20AC;?

Stang said the feedback heâ&#x20AC;&#x2122;s been getting from oilfield clients doesnâ&#x20AC;&#x2122;t match the doom and gloom reports in the news over the impact of low commodity prices â&#x20AC;&#x153;I think most of them have been proactive in taking appropriate measures to sustain

their companies during this downtime,â&#x20AC;? he said. â&#x20AC;&#x153;Most are trying to key on their key employees and keep them busy even if it might be doing a few other things. â&#x20AC;&#x153;Those few people that are being laid off that are coming through our door are finding new employment opportunities. Itâ&#x20AC;&#x2122;s all been relatively good news.â&#x20AC;?

Synergy also provides offers employers with group products for employee benefits such as long term disability and retirement planning programs to retain good employees. â&#x20AC;&#x153;Those are retention strategies for employees because if their employer is going to offer them good benefits, they are not going to be looking for other opportunities,â&#x20AC;? said Stang. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s just part of our overall financial wellness that we work with employers on.â&#x20AC;?

Customers at the new building can stop by a cafĂŠ, and view a

A17

The rooĹ&#x152;op of the new Synergy Credit Union headĆ&#x2039;uarters under construcĆ&#x;on in Lloydminster provides a commanding view of the city from all direcĆ&#x;ons. The red towers mark the boundary between Alberta and Saskatchewan.

pop-up retail area on the main floor for startup businesses or entrepreneurs to promote themselves to customers.

There will also be an innovation centre to showcase some of the engineering features of the building including modular DIRTT interior walls that are engineered and premanufactured.

Synergy is hoping to achieve silver Leadership in Energy and Environmental Design or LEED certification with the building.

The silver LEED standard takes into account sustainable site development, water and energy efficiency, material selection and indoor environmental quality.

â&#x20AC;&#x153;This building is not just for today. Our building is for the future,â&#x20AC;? said Glynn. â&#x20AC;&#x153;These wall systems we are putting in if down the road we decide our needs have changed we can disassemble them, move them, and reassemble

them how we please.â&#x20AC;?

A 16-inch raised flooring system allows for easy access to wiring, ducting and plumbing for possible changes or upgrades down the road.

The building also features 50 per cent fritted glass window to assist with cooling the

building. â&#x20AC;&#x153;Technology changes so fast. Itâ&#x20AC;&#x2122;s a race to keep up,â&#x20AC;? said Glynn. â&#x20AC;&#x153;The way our building is moving, I truly think that down the road weâ&#x20AC;&#x2122;ll be there alongside of it rather than still playing catch up.â&#x20AC;?

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A18

PIPELINE NEWS July 2015

Golf gods shine on Maidstone

Cory Bourassa͕ leŌ from B.t. Rig Supply in Lloydminster hams it up with Glenn Leroy from Husky Energy at the Maidstone golf tournament on :une ϱ.

Maidstone – The 26th annual Maidstone Heavy Crude men’s golf tournament played out as expected on June 5 with the usual mix of golf, networking and charity fundraising.

The golf gods also treated the full slate of 72 golfers to ideal match play conditions with no wind, no rain and no excuses not to have fun at the Silver Lake golf course.

“I don’t think anyone will complain too much.

There are no Herman Nelson heaters in the beer hole, so we should be good,” said lead organizer Jeff Watt prior to the tee-off.

The near perfect playing conditions helped to ease any disappointment players might have felt after opening their goodie bags to find less loot than usual – but they expected that coming in.

“This year we cut back with the recession. We cut out the shirts, we cut out the balls,” said Watt.

“We saved a few thousand dollars just in case,

but the sponsorship came through.

“This year, we upgraded towels and we upgraded to a good pro fit hat, but we still probably cut our costs in half.

“We had a big spending year last year with our 25th anniversary, so this year we figured we’d better tame if down a bit just in case.”

When the dust settled he was pleased to tell everyone in a wrap up e-mail that “support was higher than anticipated for this year’s event.”

Watt also led off the networking activity at Silver Lake by making frequent calls to his office at TWB Construction in Maidstone as its on-the-fly operations manager.

“Things have picked up in the last few weeks.

It’s been busier than it’s been anticipated I guess,” he said.

“We’re still down 70 to 75 per cent like everybody else, but it’s been good. It’s been steady. You can’t complain.

“A little work, a little play all at the same time today.”

That’s what also motivates Sean Blanchette, a sales manager for pre-owned vehicles at Boundary Ford in Lloydminster to play in the Maidstone year after year.

“It’s just a great time to get together with a bunch of people in the oilfield and talk and golf,” he said.

He estimates about 80 per cent of his customers work in the oilfield so his golfing connections pay off over time.

“Absolutely, just getting together with the people in the oilpatch, you can’t talk with enough people,” he added.

This year’s tournament was the second appearance for Brent Hemsley, a sales rep for Brightling

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“I just really enjoy the tournament. It’s a good group of people here,” he said.

“There’s a lot of guys here that I work with, so it’s a good opportunity to get together with them outside of work and just have some fun.”

As for his golfing expectations for the day he cautioned, “Well really, it’s anybody guess. I guess we’ll see how it goes. ɸ Page A19

Shawn DuƩon is a play it where it lies kind of golfer. The player from Yuest LogisƟcs Ltd. in Maidstone set up for this under the table laugher shot before moving his ball to a beƩer lie.

Burger Ƌueens Heather Simmons͕ leŌ͕ from Brightling EƋuipment Ltd. in Lloyd and :enny Eckel͕ a Lakeland College power engineering grad͕ posed for a photo at a fast food tent on the Silver Lake golf course.

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PIPELINE NEWS July 2015 ɺ Page A18 “Hopefully, I can hit a few good balls today. As long as the rain stays away it should be a good day.”

Lyle Duhaime who works in sales at Amik Oilfield Equipment & Rentals Ltd. in Lloyd was also hoping to make some business contacts during his two nine hole rounds of golf.

“Networking – that’s what we’re out here for,” he said. “It’s a great tournament. It’s a great day – no rain.”

Playing in one of the 18 flights at the Maidstone is a rite of spring for Blaine Haugen, who manages the safety valve shop for Powell Canada Inc. in Lloydminster.

“I’ve been here for a quite a few years now.

It’s an annual thing for me. I like the people. It’s a good time to get together to do some visiting. The weather’s co-operating today,” he said.

As for the downturn Haugen said, “We’re still

:eī taƩ, the lead organizer of the Maidstone oilmen͛s golf tournament announces the names of the 10 players taking their turn at a chip for $500 to start the event. The contest is sponsored by Garrison Oil tell Servicing Ltd.

doing pretty good. It’s going not too bad considering. It’s just steady right now, but it’s pretty good.

It’s a nice day to get away.”

Kim Gerbig, a bulk driver for Superior Propane in Lloyd, started his day with visions of winning the $500 chip-off sponsored by Garrison Well Servicing.

“This is the second time I’ve been in it in five years so it’s all fun,” he said. “Gotta have a beer before I go out there too.”

Gerbig’s name was one of 10 picked at random for the lottery shot to come.

“Good luck to the other guys because I’m going to win,” he predicted.

“I’m going to buy beer for the boys and keep a $100 for myself,” he promised with the help of his best pitching wedge and a special Top Flite ball.

Gerbig had to settle for a reality check and no money when Brad Pelley claimed the loot.

Pelley’s winning chip landed 18.5 ft. from the hole earning him the legitimate right to tell Pipeline News how he did it.

“I hit a wedge in there and it stuck. I felt like I hit a good shot and I’m happy with it,” he said.

“My anniversary is today, so I’ll buy presents for the wife.”

The tournament will also shower the local community with thousands of dollars raised for charity causes with some specific details provide by Watt’s e-mail.

“A refreshment wagon, which raised $1,600 was raffled off to support the Fritz Family who lost their home in a fire last month. Winner was Dean Blanchette,” noted Watt.

Players Jeff Taylor, Justin Harwood, Ben Schwartz and Brent Henry agreed on a tie in Flight 6 and added their winnings to the Fritz family cause.

The event wrapped up with an evening steak barbecue and social when the progressive draw prize was won by Gerald Yaremy of Lloydminster.

Al Bubba Kolybaba from Cervus Equipment Ltd., Peterbilt in Lloyd overpowers his golf ball with high waƩ body English.

Yaremy choose a set of TaylorMade irons rather than a weekend golf package at Northern Meadows in Good soil.

The golf package was auctioned to Doug Tuplin who donated the proceeds to fund a trip by Miss Teenage NW Saskatchewan Kelsey Nosek to attend the Miss Teenage Canada finals in Toronto.

Nosek and her family were hired to cater this year’s banquet as the usual parks board crew was shorthanded.

A round of applause also went to Les Gagnon, voted by players as the recipient of this year’s Ernold Priest Memorial Trophy awarded to the most sportsmanlike golfer.

The official record shows that Trevor Tipler is the winner of the 2015 champions round with Jared Rutley in second and Chris Hartman in third.

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PIPELINE NEWS July 2015

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PIPELINE NEWS July 2015

A21

Pocketing the gold Vermilion – Hunter Weatherly didn’t place in the steamfitter/ pipefitter event at the national Skills Canada competition in Saskatoon, but he still gets to celebrate being Alberta’s gold medalist for 2015.

The 20-year-old apprentice got to the nationals held May 2730 by placing first in the category at the provincial skills competition in Edmonton May 13-14.

The back-to-back competitions capped off Weatherly’s first his first period of steamfitterpipefitter apprenticeship technical training at Lakeland College in Vermilion last fall.

No matter how he fared in Saskatoon, Weatherly had planned

to return to the Vermilion campus in June to show his provincial gold medal to current steamfitter-pipefitter students.

“I told him if he placed in the top three at provincials he had to come back to the college to show his medal to the students. Hopefully, he’ll have two medals when he comes back,” said Magas prior to the nationals.

Weatherly lives and works in Hardisty, Alta. and entered the provincial competition because he wanted to see how his skills measured up against competitors from other colleges throughout Alberta.

During the two-day provincials, competitors

had 12 hours to fabricate a piping system.

They were judged on the quality, workmanship and accuracy of their work.

“I thought I’d done pretty well but you never know. It was great to win gold and earn a spot at nationals,” said Weatherly in a feature report by Lakeland College.

Weatherly went into the nationals going for gold.

“It would be cool to be able to say I’m the best steamfitter/pipefitter in Canada,” he said fresh from his win at the provincials.

If he couldn’t win gold at nationals, he said he at least wanted to make it on

the podium to honour Magas and his other instructors including Graham Hammel and Joe Laurence.

“They deserve to have the program and the college well represented at nationals,” said a grateful Weatherly who will take his second period of technical training at the Vermilion campus this fall.

Weatherly was one of five Lakeland students in the provincial skills competition in Edmonton.

For the second consecutive year, Jeremy Blanchette of St. Paul, Alta., won silver in the auto service event. Blake

Darryl Magas, leŌ, an instructor in the steamĮƩer-pipeĮƩer program at Lakeland College helped prepare apprenƟce Hunter teatherly to win gold at the provincial Skills Canada compeƟƟon in Edmonton May 1ϯ-14 and qualify for the naƟonals. WŚŽƚŽ ƐƵďŵŝƩĞĚ

Robley, of Metiskow, Alta., won the bronze medal for carpentry.

About 700 high school and post-secondary students from more

than 80 communities throughout Alberta competed in the Provincials. There were 45 trade and technology events.

NDP energy minister

hometown of Fairview where the energy industry has a big presence.

Her family lives on a farm in the Fairview area.

McCuaig-Boyd’s first task as energy minister is to speak with oil and gas company leaders and stakeholders to understand their priorities.

She has also made it clear a royalty review is a top priority for the Notley government.

Marg McCuaig-Boyd is Alberta’s energy minister in the province’s Įrst EDP government that was sworn in on May 24. WŚŽƚŽ ƐƵďŵŝƩĞĚ

Edmonton – Alberta premier Rachel Notley and her cabinet were sworn in on May 25 as the province’s first New Democrat government.’

The event took place on the front steps of the legislature with hundreds of Albertans on hand to witness Notley become Alberta’s 17th premier along with 11 cabinet ministers.

“On this historic day, we are once again joining together in pursuit of our common dream... a dream founded on the idea that change is possible and that a better future awaits,” said Notley.

“My friends, it’s springtime in Alberta, and a fresh wind is blowing.”

As premier, Notley will also manage in-

ternational and intergovernmental relations, which will include a focus on energy exports from Alberta.

Half of Notley’s minsters are women including energy minister Marg McCuaig-Boyd, 62, representing the northern Alberta riding of Dunvegan-Central Peace McCuaig-Boyd was a teacher and administrator for over 20 years with the Peace River School Division and a vice-president of the Grande Prairie Regional College.

She left the college in June 2013 to start a consulting company to support small- and medium-sized businesses.

McCuaig-Boyd hails from Notley’s

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PIPELINE NEWS July 2015

Prizes, fee cuts to lure Lloyd golfers

Tim Landrieu may never golf on Ts but he won a Ts, in 2012, in a puĆŤng contest at the Lloydminster Oilmenâ&#x20AC;&#x2122;s Golf Tournament. This yearâ&#x20AC;&#x2122;s prizes include a product package from Porsche Centre in Edmonton for a hole- in-one contest. File Photo

Â&#x201E; By Geoff Lee Lloydminster â&#x20AC;&#x201C; Winning the elusive chip shot for a million dollars at the 2015 Lloydminster Oilmenâ&#x20AC;&#x2122;s Golf Tournament would take the sting out of coping with the current downturn.

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ited to 10 golfers who make competitive bids for the right to shoot for dough during a break in the action.

Plan B for all-comers is to win a pricey product package from Porsche Centre Edmonton, the new sponsor for the tournament hole-inone contest.

These are two of many incentives organizers are offering golfers this year including a reduced entry fee of just $200 compared to $250 from last year. â&#x20AC;&#x153;Everything is down. We dropped our entry fee by 20 per cent this year, plus we dropped all our required sponsorship dollars just to help out in the downturn,â&#x20AC;? said Kevin Simard who heads an eight-man organizing committee. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re hoping that with a $200 entry instead of $250 that everybody sees that they could spare that and come out and support us.â&#x20AC;?

Entries are limited to 208 golfers on a first come, first served basis after the June 10th deadline for last yearâ&#x20AC;&#x2122;s golfers to sign up ahead of newcomers.

The 37th annual tournament will be played July 9-11 at the 18-hole Lloydminster Golf & Country Club after being held for several years in June. â&#x20AC;&#x153;We since we moved it back a month this year back to our old time in July â&#x20AC;&#x201C; we just started opening up entries for this yearâ&#x20AC;&#x2122;s tournament,â&#x20AC;? said Simard when contacted on June 1. â&#x20AC;&#x153;So we donâ&#x20AC;&#x2122;t really have a good number as far as where weâ&#x20AC;&#x2122;re sitting with entries, but weâ&#x20AC;&#x2122;re pretty confident weâ&#x20AC;&#x2122;ll be back up to our 200.â&#x20AC;?

For their $200 players get two rounds of golf, a shared cart with GPS, a steak supper and entertainment and â&#x20AC;&#x153;all the fun thatâ&#x20AC;&#x2122;s out on the course,â&#x20AC;? in Simardâ&#x20AC;&#x2122;s words. â&#x20AC;&#x153;We still have the same amount of prizes.

Weâ&#x20AC;&#x2122;ve maintained that as far as hole prizes and flight winners and second place â&#x20AC;&#x201C; and all that kind of stuff.â&#x20AC;?

Simard expects to see a lot of players funding their own registration fees this year as companies cut back on expenses. ɸ Page A23

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PIPELINE NEWS July 2015 Éş Page A22 â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;ve already seen it. Iâ&#x20AC;&#x2122;ve seen it in the oilfield. Everybodyâ&#x20AC;&#x2122;s been cut back. Expenses are looked at everywhere and this could be one of them,â&#x20AC;? he said. â&#x20AC;&#x153;I think everybody understands itâ&#x20AC;&#x2122;s a good deal for your money, so theyâ&#x20AC;&#x2122;ll support us still, Iâ&#x20AC;&#x2122;m sure of it.â&#x20AC;?

Players will be grouped into as many as 26 flights with prizes and Calcutta payouts and auction payouts galore awarded on the final day of play.

Cost cutting is focused on lower entry fees and reduced sponsorship rates in keeping with the economic times. â&#x20AC;&#x153;We tried to cut back everything a little bit to help our sponsors,â&#x20AC;? said Simard. â&#x20AC;&#x153;This feedback weâ&#x20AC;&#x2122;re getting is that theyâ&#x20AC;&#x2122;ll do a little bit, but they donâ&#x20AC;&#x2122;t know if they can do the same amount as they did last year, so we understand that. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re all in the oilfield, the guys on the committee, so weâ&#x20AC;&#x2122;ve seen it and we wanted to help out and try just to, this year, maintain the quality of the tournament. â&#x20AC;&#x153;We donâ&#x20AC;&#x2122;t need to make a bunch of money.

We just want to probably break even and hope for better times and the patch comes around a little bit. â&#x20AC;&#x153;We do have some major sponsors stepping up, so we should have that list updated on our

website soon.â&#x20AC;?

Halliburton is the new sponsor of the million dollar holein-one contest having purchased the previous sponsor, Europump Systems Inc., in August 2014.

PWM Steel, the banner sponsor of the Ladies of the Patch Golf Tournament, is onboard as a first time sponsor of the menâ&#x20AC;&#x2122;s event along with Wilkinson Livingston Stevens accounting firm. â&#x20AC;&#x153;So weâ&#x20AC;&#x2122;ve looked at other avenues other than the oil industry to help out with the tournament,â&#x20AC;? said Simard. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re stepping out of the oilfield side.

Wilkinson Stevens â&#x20AC;&#x201C; Iâ&#x20AC;&#x2122;m sure they have a lot of clients that are in the oilfield, so they understand.â&#x20AC;? â&#x20AC;&#x153;Porsche Land Rover wants to see a new market out here.

Theyâ&#x20AC;&#x2122;re not represented out here so theyâ&#x20AC;&#x2122;re looking at a new market.â&#x20AC;?

The Porsche Centre dealership sells high end Porsche, Land Rover and Jaguar vehicles.

Aside from prizes galore, organizers are also pitching would-be golfers on the opportunities to network and establish new sales leads for when oil prices recover. â&#x20AC;&#x153;Thatâ&#x20AC;&#x2122;s the biggest thing we try to push.

Salespeople want to talk to their customers. This is a good time to socialize and maybe make a few more connections,â&#x20AC;? said Simard.

Simard is a comple-

tions supervisor with Canadian Natural Resources in Lloydminster with 12 to 14 service rigs under his control this year compared with 18 to 20 last summer when oil reached $100 a barrel. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re just kind of in a holding pattern.

Weâ&#x20AC;&#x2122;re not busy but weâ&#x20AC;&#x2122;re not slow. Weâ&#x20AC;&#x2122;re not drilling a whole bunch, but we are still working,â&#x20AC;? he said with oil prices climbing over $60 a barrel. â&#x20AC;&#x153;More projects are getting put on the board every day. Itâ&#x20AC;&#x2122;s just sustainability. We just need that oil price to sustain a level that is profitable on some of these projects.â&#x20AC;?

The slow pace of the oilfield this summer could work in favour of a good turnout for the oilmenâ&#x20AC;&#x2122;s with more time for golf. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s not nice to be slow, but itâ&#x20AC;&#x2122;s nice to have an out â&#x20AC;&#x201C; something else to keep our minds busy while weâ&#x20AC;&#x2122;re a little slower,â&#x20AC;? said Simard. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re hoping we get a good turnout and good weather and everybody has a good time.â&#x20AC;?

Simard expects the switch in dates back to July will also benefit the turnout this year. â&#x20AC;&#x153;We had it three years in June, and now weâ&#x20AC;&#x2122;ve moved it back to July. We had some

feedback and everybody kind of preferred the July weekend,â&#x20AC;? he explained. â&#x20AC;&#x153;In June it was always on Fatherâ&#x20AC;&#x2122;s Day weekend. It just didnâ&#x20AC;&#x2122;t work for some of the people. This way itâ&#x20AC;&#x2122;s July.

Everybody has a little more time.â&#x20AC;?

Gary Reid, leĹ&#x152;, and Dwayne Erg were all smiles using Ergâ&#x20AC;&#x2122;s hand-held Sky Caddie rangeÄŽnder on a rainy opening round of golf at the 2012 Lloydminster Oilmenâ&#x20AC;&#x2122;s Golf Tournament. This year organizers are hoping for clear skies.

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PIPELINE NEWS

SECTION B July 2015 Much smaller than the Shand Power StaƟon behind it, the Carbon Capture Test Facility is sƟll nine storeys tall.

Carbon Capture Test Facility opens

By Brian Zinchuk Estevan – The last piece of Saskatchewan’s carbon capture strategy has fallen into place, with the grand opening of the Carbon Capture Test Facility (CCTF) on June 18.

The facility is designed to test carbon capture technologies, specifically different amine solutions used to capture carbon dioxide, in a real-world environment, connected to an operating coal-fired power station. It has been built as part of a joint venture between SaskPower and Mitsubishi Hitachi Power Systems.

The CCTF is the final component among numerous projects encompassing all phases of the carbon capture and storage life cycle. First, for the last 15 years the Weyburn-Midale greenhouse gas project has been injecting carbon dioxide into the depleted oilfields operated by Cenovus and Apache.

In 2014, the SaskPower Boundary Dam Integrated Carbon Capture and Storage project went into operation. It is the first commercial scale coal-fired generating unit and associated full-scale capture plant of its type in the world. That project also feeds the Cenovus-operated Weyburn Unit with CO2.

In May the Aquistore project held its ribbon

cutting. That $30 million research project is designed to take additional CO2 from the Boundary Dam project and inject it into deep saline aquifers.

With the completion of the $70 million CCTF, southeast Saskatchewan’s role as a centre of excellence for carbon capture and storage is now complete, with a large-scale research facility for carbon capture research. This is not lab bench testing, but real-world application of technologies whose next step will hopefully be commercial usage.

Representatives from 20 countries on the Carbon Sequestration Leadership Forum attended the grand opening. It is a global group of policy makers who meet biannually to discuss CCS potential around the world. Dignitaries on hand from Mitsubishi Hitachi and SaskPower spoke of the project’s importance, as did Premier Brad Wall via a recorded video. Wall is credited as the person who got the project going.

“We’ve captured hundreds of thousands of tonnes of carbon dioxide and produced electricity serving about 100,000 homes and businesses; electricity together with very low CO2 emissions. This is a very, very good thing,” SaskPower president and CEO Mike Marsh said about the Boundary Dam project.

“Today, we’re celebrating the launch of the Carbon Capture Test Facility. Using much the same processes as our Boundary Dam Project, this facility was designed to allow companies from around the world to test and develop their new carbon capture technologies. That means not only are we leading the way here in Saskatchewan, we plan on leading and supporting the next generation of carbon capture technology. For us that means more reliable, affordable coal power in our generation mix, and in a way that’s also environmentally sustainable.

“Worldwide, this could mean a real solution to curb greenhouse gas emissions and really make a dent in global climate change,” Marsh said.

Marsh was personally working at the Boundary Dam Power Station at the time Shand Power Station was being built 25 years ago. “For those that don’t know, Shand was the most environmentally clean, environmentally responsible power station of its kind in Canada when it was commissioned in 1992. Today we’re here, opening the Carbon Capture Test Facility, continuing down that journey to clean up emissions from facilities that burn coal.

I think it’s a very proud day for everybody.” ɸ Page B2

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PIPELINE NEWS July 2015

Last piece of CCS puzzle now in place

From leĹ&#x152;, Mike Monea, SaskPower president, Carbon Capture & Storage /niĆ&#x;aĆ&#x;vesÍ&#x2013; zoshiro /natsune, general manager, AYCS proĹŠect management department, Mitsubishi Hitachi Power SystemsÍ&#x2013; Andriy Shved, proĹŠect managerÍ&#x2013; and Mike Marsh, SaskPower president and CEO unveil the plaque commemoraĆ&#x;ng the grand opening of the Shand Carbon Capture Test Facility.

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Éş Page B1 Marsh spoke of the collaboration with SaskPowerâ&#x20AC;&#x2122;s partner, Mitsubishi Hitachi.

They will be the first company to use the facility, with 8,000 hours of running time, or roughly 14 months, scheduled.

The CCTF began operations in April.

Yasuo Fujitani, senior executive vice president at MHPS, said, â&#x20AC;&#x153;I believe the CCTF project would not be realized without strong government support.â&#x20AC;?

He thanked both the provincial government and Crown Investment Corporation.

Fujitani noted the main equipment for the facility was fabricated

by MHPS Canada. â&#x20AC;&#x153;SaskPower can now offer access to this unique facility for companies to develop and test carbon capture and storage [CCS] technologies,â&#x20AC;? said Premier Brad Wall, who appeared via a recorded video. â&#x20AC;&#x153;This will continue to bring international interest to Saskatchewan and give us prime access to the next generation of CCS innovation.â&#x20AC;?

Wall noted a â&#x20AC;&#x153;tradition of innovation,â&#x20AC;? which includes nuclear medicine, biotechnology, crop science, and now, in carbon capture and storage. â&#x20AC;&#x153;Over the last 15 years, Saskatchewan has emerged as a world leader in CCS research,â&#x20AC;? he said, noting the Weyburn-Midale Project and Boundary Dam 3. â&#x20AC;&#x153;Today, weâ&#x20AC;&#x2122;re going to begin a brand new

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chapter, with the opening of the SaskPower Carbon Capture Test Facility at Shand Power Station â&#x20AC;&#x201C; the CCTF. This facility will be the first of its kind on the planet. It will give companies from across the globe the opportunity to test their own technology, their own next-generation carbon capture technology, in the real-world setting of a working, commercial coal fired-power plant.

Weâ&#x20AC;&#x2122;re going to take the lead to improve processes and widen the range of CCS technology available for largescale projects.â&#x20AC;?

Wall acknowledged the partnership of Mitsubishi Hitachi Power Systems. â&#x20AC;&#x153;It is a partnership we value,â&#x20AC;? he said, thanking them for their vision and diligence. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s fitting this is an international partnership, because what we face today is an international challenge.

Renewable energy is important, but the reality is the world will rely on fossil fuel energy â&#x20AC;&#x201C; oil, natural gas, coal â&#x20AC;&#x201C; for some time to come.â&#x20AC;? â&#x20AC;&#x153;This is particularly true in Asia, the fastest growing region in the world. Today in China they are building a new coal-fired power plant every 10 days.â&#x20AC;? â&#x20AC;&#x153;How do we dramatically reduce greenhouse gas emissions without bringing our economies to a halt?

Thatâ&#x20AC;&#x2122;s the question before us. The answer, at least in part, is carbon capture and storage,â&#x20AC;?

Wall said.

Mike Monea, SaskPowerâ&#x20AC;&#x2122;s president, Carbon Capture & Storage Initiatives,

noted, â&#x20AC;&#x153;The premier was the one, really, that had the original vision of creating a test facility.â&#x20AC;?

Construction on the project began July 22, 2013. Harsh winters and flooding while foundation work was being done resulted in delays in completion, as well as a shortage of labour. This was particularly felt as the emphasis was to complete the Boundary Dam 3 project, which was concurrently under construction for much of the same time. As a result, the initial budget of $60 million grew to $70 million.

Graham Construction was the prime contractor on the CCTF. Operation The CCTF is a modular facility, where many individual parts can be isolated, modified and operated to test specific carbon capture technologies. There are sophisticated measurement tools and a data system which continually records operating conditions at numerous locations. There is a laboratory at the front of the building for regular testing of amine samples. Companies will be able to track how their particular technology performs over time and in response to realistic commercial operating conditions.

For instance, while nearly all the vessels and piping within the facility are made of very expensive stainless steel, portions of the carbon dioxide absorber are made of conventional carbon steel. This was done to see if such facilities could be built much less expensively. ɸ Page B3

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PIPELINE NEWS July 2015

B3

This is the heart of the Carbon Capture Test facility.

Éş Page B2

Mike Marsh is the president and CEO of SaskPower.

The plant itself captures a slipstream of exhaust gas from the induced draft fan ducts of the primary power plant. The total volume of flue gas diverted is approximately two per cent of the flue gas stream.

It travels horizontally through a 30 inch stainless steel pipe into the CCTF. There it goes through a flue gas desulphurizer scrubber which removes all the sulphur dioxide. â&#x20AC;&#x153;It works very, very well,â&#x20AC;? said Kevin Beck, construction supervisor, during a tour of the facility.

From there the flue gas passes through the nine-story-tall absorber, with the gas going up

as amine comes down.

The amine captures the carbon dioxide. The remaining gas, now largely free of CO2, is vented to atmosphere and amine proceeds to the desorber, another tall, vertical vessel. There the carbon dioxide flashes off the amine and the amine is used again.

A series of heat exchangers are used throughout the process.

Process steam is also piped over to reboiler from the principal power plant to reheat the amine to start the sequence over again, and there are two 16inch lines, one bringing cooling water into the facility and the second

returns it to the cooling ponds.

A reflex drum is used as a final process to cleanse the exhaust CO2 of any remaining amine before the CO2 leaves the building. Since this is a test facility, they are not retaining any of the captured CO2. It is vented to the atmosphere through a port at the top of the building. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re testing, not recovering it,â&#x20AC;? Beck said. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s only a test facility.â&#x20AC;?

There is also a reclaimer for periodic treatment of the amine, returning it to its original state.

The plant operators work day shifts during the week at large banks

of computer screens. On evenings and weekend, the operation of the CCTF is taken care of by the main control room within the Shand Power Station.

A total of 120 tonnes of CO2 is captured per day by the CCTF. This compares to the roughly 3,000 tonnes per day the Boundary Dam project is expected to capture at full capacity.

While no company has yet signed on for using the facility once Mitsubishi Hitachi is done their initial 8,000 hours of testing, Monea expects the facility to be used for many years to come.

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PIPELINE NEWS July 2015

Aquistore holds ribbon cutting Â&#x201E; By Brian Zinchuk Estevan â&#x20AC;&#x201C; The two deepest wells in the province, a $1.467 billion carbon capture project, a $30 million research project, and, quite possibly, the fate of the world in the balance if it proves successful. Those are just some of the things at play with the Aquistore project, which began injecting carbon dioxide this spring and held its ribbon cutting on May 29.

One of the grand strategies to deal with greenhouse gases, carbon dioxide in particular, is to capture it and thus stop emitting it from industrial processes like coal-fired power plants or oil refineries.

But once it is captured, what do you do with it?

While some areas, like southeast Saskatchewan, have depleted oilfields where the carbon dioxide can be used in enhanced oil recovery

and will, in the end, remain underground, that option is only available in a very limited areas worldwide. However, deep saline aquifers are much more prevalent around the globe. That is what Aquistore does â&#x20AC;&#x201C; pump CO2 into the deepest saline aquifer in Saskatchewan, with the intention of that CO2 staying there forever.

Itâ&#x20AC;&#x2122;s the â&#x20AC;&#x153;storageâ&#x20AC;? aspect of â&#x20AC;&#x153;carbon capture and storage,â&#x20AC;? the term used to describe the entire process.

Aquistore, a research project developed by the Regina-based Petroleum Technology Research Centre, has been many years in the making. Initially it was proposed for storing carbon dioxide that would have been captured at the Regina Consumers Cooperative Refinery, and located just a few kilometres northeast of the capital city. That concept fell through, however,

Dozens aĆŠended the ribbon cuĆŤng ceremony for the Aquistore research site. The inĹŠecĆ&#x;on well is behind the dignitaries. CuĆŤng the ribbon are, from leĹ&#x152;, Dennis Moore, Estevan city councillorÍ&#x2013; Kelly Lafrentz, reeve of the RM of EstevanÍ&#x2013; Grant Ring, vice-president of business development at SaskPowerÍ&#x2013; Ken From, PTRC CEOÍ&#x2013; Herb Cox, minister of EnvironmentÍ&#x2013; Ed Komarnicki, MPÍ&#x2013; Doreen Eagles, Estevan MLA. Photo by Brian Zinchuk

and instead Aquistore became part of the SaskPower Boundary Dam Integrated Carbon Capture and Storage Project.

This grand scheme, which began operations in the fall of 2014,

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involved rebuilding the nearly 50-year-old Unit 3 of the Boundary Dam Power Station. The newly-rebuilt unit would then have its exhaust channeled horizontally to the new billion-dollar carbon capture plant. This plant would capture approximately 90 per cent of all carbon dioxide emitted, and nearly all the sulphur dioxide. A compressor at the south end of the facility then compresses the gaseous

CO2 into a liquid state and normally ships all of it to the Cenovusoperated Weyburn unit, where the gas is used as a solvent in a miscible carbon dioxide flood for enhanced oil recovery.

However, there are times when the Weyburn Unit may not be able to take all the CO2 sent their way, and this is where Aquistore comes into play. Situated just a few kilometres to the west of the power station

and a few kilometres down the pipeline, the compressed CO2 can be diverted into Aquistore instead. There, instead of being pumped into the Midale formation approximately one kilometre underground (as it would in the Weyburn Unit), it would be pumped just shy of 3.4 kilometres underground, into the Deadwood and Black Island formations, sandstone brine formations. ɸ Page B5

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PIPELINE NEWS July 2015 ɺ Page B4 If all this works, and there are tremendous amounts of scientific monitoring to see if it does, then the implications could be enormous.

Deep saline aquifer storage could become a leading strategy in dealing with greenhouse gas emissions. Aquistore is the first attempt worldwide to do this with anthropogenic carbon dioxide on a commercial scale.

So far, it’s working.

That’s why the dignitaries lined up to cut the ribbon on May 29.

“Aquistore puts the ‘S’ in CCS,” said PRTC president and CEO Ken From.

He noted the monitoring setup is world-leading in many aspects, including monitoring seismic activity, CO2 levels in soil, and well water quality, to name a few. This expertise was developed as a part of the PTRC’s 15 years of work with the Weyburn-Midale enhanced oil recovery project.

“Saskatchewan is a world leader when it comes to CO2 emissions.

From pointed out they have research partners from Korea, Japan, Scotland, England, the United States and Canada.

He thanked the government of Canada, which, through Natural Resources Canada and Sustainable Development and Technology Canada for its financial support and leadership, as well as the Saskatchewan Ministry of Environment’s Go Green Fund. He also thanked SaskPower, SaskEnergy, the Korean National Oil Company, Enbridge, Federated Cooperative Refinery and Schlumberger for their support.

“The results of the Aquistore project are critical for the future and ongoing development of deep storage

of CO2 around the globe.”

Souris-Moose Mountain MP Ed Komarnicki noted that in 2004 he spoke to Ron Carson, of Carson Energy Services (now AECOM) found it “remarkable we have all this CO2 in this area of the province and we’re not doing anything with it.”

There were oilwells throughout the southeast that could benefit from carbon dioxide for enhanced oil recovery, Carson told Komarnicki. “for me, it’s a great pleasure to actually see something that was sort of 30,000 feet in the air come down into reality, and to see people have used technology and expertise to not only put together a carbon capture facility, but pipe it over to another facility to enhance oil recovery and store the excess,” Komarnicki said.

“Can you imagine putting 250,000 cars down somewhere?” he added, referring to the equivalent amount of emissions the Boundary Dam project captures.

The federal government was an early supporter of the project, and their funds leveraged other funds, Komarnicki said. “Today we see the results. Today we celebrate the vision and determination.”

Herb Cox, who was appointed the new provincial Minister of the Environment just a few days before, noted, “This is a very important initiative for this province, Canada and the world.”

He said the province takes climate change very seriously, and the province’s greenhouse gas emissions have largely stabilized in recent years. “What we are starting to see is a delinking between greenhouse gas emissions and GDP growth.”

“We do recognize there is much more to do to address the global

B5

This system draws Ňuid from ϯ,400 metres down, taking Ňuid directly from the outside of the Aquistore observaƟon well. /t was designed by researches from the University of Alberta, with Dr. Rick Chalaturnyk

climate change. We believe carbon capture and storage is part of that.”

Aquistore has partnerships with 17 different international organization in seven different countries, Cox noted.

Estevan MLA Doreen Eagles said she was proud to be part of a government doesn’t see the environment and the economy as opposites.

“Success of this project will mean that Saskatchewan is making real headway on CO2 reduction without sacrificing jobs or economic growth,” Eagles said.

Grant Ring, vice-president of business development with SaskPower, said, “SaskPower’s carbon capture and storage and research centre will host the world-class Aquistore proj-

ect. And it is world-class, no question about it. We’re storing carbon dioxide underground in a safe, workable solution to greenhouse gas emissions.

We’re proud to be leaders in carbon capture and storage,” Ring said.

“This project helps keep coal as an affordable solution in the province of Saskatchewan in a way that’s environmentally sustainable.”

The overall project including Boundary Dam Unit 3 and its associated capture plant is about 10 times cleaner than conventional coal, he noted.

As of June 18, the carbon dioxide plum had not yet reached the observation well. Injection began on April 27, but has varied with operation of the carbon capture plant.

Sharing the Energy

Boundary Dam The Boundary Dam Integrated Carbon Capture and Storage Project has been in operation since last fall. When asked about how things are going on that project, Jonathan Tremblay, SaskPower spokesperson, said, “We are up and running, capturing CO2 since last October. In fact, it’s operated better than planned, with an output nearly 10 per cent higher.

We are also in the routine process of identifying deficiencies and making improvements on the pioneering en-

gineering project. This does not have a significant impact on the project budget of $1.467 billion.”

There have been legal proceedings between the prime contractor, SNCLavalin and SaskPower regarding the project. Tremblay said, “We are currently participating in an arbitration process with SNC-Lavalin to address some concerns. We’d prefer not to comment on the specifics of the process and look forward to the outcome.”

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B6

PIPELINE NEWS July 2015 Time for a new sign.

File photo

Crescent Point buys Legacy (Daily Oil Bulletin) Calgary â&#x20AC;&#x201C; Crescent Point Energy Corp.â&#x20AC;&#x2122;s consolidation of southeast Saskatchewan oil production continues, as the company has entered into an arrangement agreement to acquire all of the issued and outstanding shares of Legacy Oil + Gas Inc. Legacy is a publicly-traded, light oilweighted producer with approximately 22,000 boepd of high-netback production, of which more than 15,000 boepd is from conventional and unconventional plays in Crescent

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Legacy had been led by a management team headed by Trent Yanko. It has been an early mover in the Torquay play along the U.S. border, and has done extensive work in the North Portal area.

The assets to be acquired include approximately 1,000 net sections of land, of which approximately 525 net sections are in southeast Saskatchewan. The southeast Saskatchewan lands include approximately 200 net sections in the emerging and highlyeconomic Midale light oil resource play.

Total consideration for the Legacy arrangement is approximately $1.53 billion, comprised of approximately 18.97 million Crescent Point common shares and the assumption of approximately $967 million of net debt, estimated as at the time of closing and inclusive of transaction costs. â&#x20AC;&#x153;The Legacy acquisition is aligned with our strategy of acquiring large oil-in-place pools with low current recovery factors,â&#x20AC;? said Scott Saxberg, president and CEO of Crescent Point. â&#x20AC;&#x153;This acquisition improves the long-term sustainability of our business model and our dividend not only through financial accretion and a lower payout ratio,

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but through the addition of a mix of assets with significant growth potential, low-decline rates and waterflood potential. The low-cost, high-return Midale assets add yet another layer of top-quartile locations to our drilling inventory and provide us with additional operational flexibility.â&#x20AC;?

Assuming the successful completion of the Legacy arrangement on or about June 30, 2015, Crescent Point is upwardly revising its 2015 guidance for production and capital expenditures.

The companyâ&#x20AC;&#x2122;s 2015 average daily production rate is expected to increase by approximately 6.6 per cent to 162,500 boepd from 152,500 boepd, which is based on average second half 2015 production of approximately 20,000 boepd from the Legacy assets.

Capital expenditures for the year are expected to increase by $100 million to $1.55 billion. Approximately 65 per cent of the incremental capital expenditures is expected to be directed towards drilling and completions, with the remainder used for facilities and land investments. Crescent Point expects to revisit its capital budget during third quarter 2015 based on the companyâ&#x20AC;&#x2122;s continued efforts to improve overall capital costs and efficiencies, as well as its outlook for commodity prices.

PIPELINE NEWS July 2015

B7

Natural gas will fuel new Swift Current power station

FARM & COMMERCIAL PROPERTIES

Swift Current – Saskatchewan natural gas producers will have a new place to sell their gas to soon, as SaskPower announced a major power plant for Swift Current that will run on the cleanburning fuel.

On June 12, SaskPower announced that Swift Current was chose as the site for an approximate 350-megawatt combined cycle natural gas power plant. The project is expected to be complete in 2019.

Put in perspective, this power plant will have more generating capacity than the 276 megawatt Shand Power Station. It will also have more than twice the generating capacity of the recently completed Unit 3 portion of the Boundary Dam Power Station and its associated carbon capture plant, which came in at $1.467 billion.

A 158-acre site near Swift Current will see the construction of an approximate 350-megawatt combined cycle natural gas plant when the project is complete in late 2019.

Twelve potential areas were initially evaluated for the gas plant through a public consultation process. The list was narrowed to two options: the successful site near Swift Current, and a second site near Lanigan. The Swift Current area was ultimately selected as the preferred location as it requires fewer infrastructure upgrades, which will significantly reduce the costs associated with the project.

The gas plant location was chosen based on a number of factors, including proximity to existing transmission infrastructure and natural gas supply, as well as the growing demand for electricity in southwest Saskatchewan.

The TransCanada mainline, the backbone of natural gas transmission capacity for the country, also lies just north of Swift Current, passing westto-east. The current plan is not to connect to the TransCanada mainline, however, this plan has not yet been finalized.

SaskPower noted in its press release that combined cycle natural gas is a proven technology with a short lead time, relatively low cost compared to other options and is highly efficient, meaning fewer greenhouse gas emissions. Consultation was done with the public, local community leaders and affected landowners.

The next steps in the process are to determine whether the project will be built by SaskPower or by an independent power producer through a competitive procurement process. A request for proposals (RFP) will be issued publicly to further evaluate the options and ensure that overall value is maximized for SaskPower and its stakeholders. More information will be available in the next several weeks.

When developing power generation capacity in the Battlefords area a few years ago, the company went with both options. The baseload plant is the new 260 megawatt Northland Power facility just east of North Battleford. SaskPower built and operates its own simple-cycle natural gas peaking plant within North Battleford, the 138 megawatt Yellow-

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The cost of this new plant will not be known until the request for proposals come back.

SaskPower has been expanding its wind generating capacity in the southwest, but this project is not connected with those efforts.

“In our province, overall growth continues at a steady pace with SaskPower adding 11,000 customers to the grid last year,” said Premier Brad Wall in a release. Wall, who is also the MLA for Swift Current, added, “The numbers will continue to climb as Saskatchewan grows, so this project will help ensure we’re ready to serve all customers.”

“Demand for electricity grew nearly 10 per cent in the last two years and records for peak demand continue to be set,” said SaskPower president and

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“This is a very exciting opportunity for our community,” said City of Swift Current Mayor Jerrod Schafer.

“Not only will the completed plant create between 20 and 25 new permanent jobs, but we anticipate that the construction phase of this project will demand four to five hundred people. As a community that is growing steadily and looking to continue our progression towards 25,000 residents by 2025, this announcement is very welcome news.

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PIPELINE NEWS July 2015

Enbridge donates $60,000 to Summer Games Pipeline company backs employees wishing to volunteer

By Brian Zinchuk Estevan – In 2016, Estevan will be hosting the Saskatchewan Summer Games. In addition to requiring funds, the ambitious event will also require people. Enbridge is contributing both funds and people.

On May 27 the company donated $60,000 to the games committee. But more importantly, the company will be supporting its employees who choose to help with the games.

John Williams, director, Enbridge Pipelines Saskatchewan, Inc., spoke of the company’s “recognized volunteer partnership program.”

Enbridge will allow workers to contribute time on the company clock to their volunteer efforts. In addition, if an employee puts in a certain amount of volunteer hours, Enbridge will also provide a cash donation to the worthy cause of their choice.

“Recognized volunteering is good for the community,” he said. For instance, if an Enbridge employee puts in over 40 hours coaching a local sports team, Enbridge may provide a $500 donation to minor hockey.

“It’s near and dear to their hearts,” Williams said with respect to Enbridge employees’ attachment to the Summer Games.

“For me, that’s one of the key things.”

Williams noted that Enbridge has operations spanning across North America. Thus, they may not present cheques as large as some other companies, but when Enbridge comes to the table, they will also provide the backing of volunteers, too, and that makes a big difference. He said it’s humbling to see so many staff volunteering. ɸ Page B9

Students from Estevan Comprehensive School make use of the new Enbridge Walking Path.

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PIPELINE NEWS July 2015 ɺ Page B8 “They do it because they care passionately.”

“I think last year about $26,000 went back into the community, in Carlyle, Bienfait, Weyburn, Estevan,” he said.

The company has also provided equipment and material when needed. During the 2011 southeast Saskatchewan flooding event, Enbridge provided two large pumps that were able to free up 56 semis using their pumps to keep Benson from being inundated. Boats and helicopters were also provided, and workers helped with sandbagging efforts.

Diamond sponsor Brenda Lyons, marketing and promotions cochair for the Summer Games, said, “In recognition they became a diamond event sponsor.”

This includes the opportunity to be a named sponsor for a particular event. Enbridge chose the equestrian venue at the Estevan exhibition grounds, since horseback riding is an activity near and dear to many of the landowners it works with.

The cash donation goes into general operating costs and to legacy projects for sport. Lyons noted the intention is to provide improvements to facilities for 12 different events, with each venue receiving around $10,000 to $15,000 in improvements.

The overall budget for the Summer Games is estimated in the $3 million range.

“A big portion of that is the athletic field rebuild, at $1.6 million,” she said.

Adjacent to that field south of the Estevan Comprehensive School is a new walking path which now bears Enbridge’s name. The path is intended to make it safer for students to walk to the nearby commercial district, instead of walking on the side of a busy road.

The improved venues will hopefully play another factor important not only to the community, but to Enbridge as well: attracting and retaining workers. Williams noted Enbridge has a vested interest in keeping employees happy.

Lyons noted the importance of having a community where people want to live, and the Summer Games is important in that regard.

To that end, Williams picked up on something one of the games organizers, Bernie Bjorndalen, said. “Bernie said it was important to the

games committee to have Enbridge on board because they share the same values.”

Williams said it’s less about location and more about people and values; those values include active communities.

“Having people commit personal time is precious,” he said. “They’re showing young people not only how to lead, but to carry the torch forward.”

Lyons said approximately 2,000 volunteers will be needed for the event.

“The magnitude of what we’re doing is quite huge,” she explained.

There will be spinoffs for local business, with 1,800 athletes and a further 6,000 spectators expected to attend.

In addition to sports, there will be a cultural aspect as well, Lyons added. The games will also

B9

focus on sustainability.

Key infrastructure Until very recently when crude-by-rail started to return to southeast Saskatchewan since its last usage in the 1950s, nearly every drop of oil produced in the region for those 58 years has been gathered into and shipped by Enbridge (and under its former name, Interprovincial Pipe Line Ltd.) Even to this day, the vast majority of oil from southeast Saskatchewan relies on Enbridge pipelines to reach market.

Williams is modest about that point, saying other companies would fill the void if Enbridge wasn’t present. But the fact remains Enbridge, and IPL, have indeed been present since the 1950s. As it stands now, the company has the capacity to ship all southeast Saskatchewan oil, should producers choose that route.

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PIPELINE NEWS July 2015

Neil Roszell Sask.

Oilman of the Year

From leĹ&#x152;, Saskatchewan Oil and Gas Show chairman Del MondorÍ&#x2013; Minister of Economy Bill Boyd, Oilman of the zear Eeil Roszell, Premier Brad Wall. Photo by Brian Zinchuk

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Weyburn â&#x20AC;&#x201C; The Viking play north of Kindersley has become one of Saskatchewanâ&#x20AC;&#x2122;s hottest, and one of the more significant players there is Raging River Exploration Inc. Its president and CEO, Neil Roszell, was honoured as Saskatchewan Oilman of the Year on June 3 during the Saskatchewan Oil and Gas Show in Weyburn.

Minister of the Economy Bill Boyd, who is also the MLA for Kindersley, read the induction biography as follows: Neil Roszell has built a career by focusing on the phrase â&#x20AC;&#x153;whatâ&#x20AC;&#x2122;s old is new again.â&#x20AC;? His technical innovation has helped revolutionize the oil industry in Saskatchewan by bringing old, nearlydead plays back to life.

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Saskatchewan. His father was in the grain handling business so Neil moved around as a child, spending time in small towns across the province including Shaunavon and Fort Quâ&#x20AC;&#x2122;Appelle. He graduated in 1991 from the University of Regina with a Bachelor of Applied Science in Industrial Systems Engineering.

During his studies in the Engineering Co-op program he found his passion for the oil and gas industry while doing work-study internships with Mobil Oil and SaskOil. After graduation, he joined SaskOil and worked with many other future oil patch business leaders including Scott Saxberg, Trent Yanko and Paul Colborne.

Neil later held senior engineering roles at Remington Energy followed by a period at Suncor. He started on his career as an entrepreneur when he joined Great Northern Exploration as the Vice President of Engineering. After assisting in building and selling Great Northern Exploration, he started down the path of founding, growing and selling a string of companies.

He became president and COO of Prairie Schooner Petroleum, which was later sold to True Energy. He then returned to his Saskatchewan roots as the president and CEO of Wild River Resources, a company focused on horizontal mult-frac drilling in the Shaunavon area of southwestern Saskatchewan, a company he eventually sold to Crescent Point.

He then founded Wild Stream Exploration,

again in the Shaunavon area and again sold to Crescent Point.

His next venture, Raging River Exploration, included the launch of his oilfield revitalization initiatives.

The Viking oil play in the Kindersley area was discovered in the 1940s but had dwindled to almost nothing.

Over the last five years, a number of companies including Raging River Exploration have brought the play back to life, roughly tripling the areaâ&#x20AC;&#x2122;s production.

With Neil at the helm of Raging River, the company grew from a small 1,000 barrel per day company in 2012 to become one of the dominant forces in the Kindersley area. In 2015, its current production in the Kindersley area exceeds 13,000 barrels-per-day. Raging River is now one of the most active drillers in Saskatchewan with approximately 250 wells drilled in the Kindersley area in 2014.

Raging River continues to be a technology leader in the development of the Viking light oil resource and is currently regarded as one of the premier intermediate oil companies in Canada.

Neil is past director of the Canadian Association of Petroleum Producers. He is dedicated family man who is married with three children. He enjoys fishing, snowmobiling and hunting especially when he can do it right here in Saskatchewan.

Returning to his roots most summers you can find him and his extended family enjoying the beautiful Saskatchewan summers on Lake Diefenbaker.

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PIPELINE NEWS July 2015

B11

Roszell responds to honour

Eeil Roszell, president and CEO of Raging River ExploraƟon /nc., responded to the honour of being named Oilman of the zear. Photo by Brian Zinchuk

Neil Roszell, 2015 Saskatchewan Oilman of the Year, responded to the accolades, saying, “It’s an honour to be back in my home province of Saskatchewan to receive this award.”

“Having worked in the Saskathcewan oilpatch for 25 years,

I’ve witnessed a lot of technological changes and advancement. I started work for Mobil work in the Shaunavon area, worked through Lloydminster into the Pierceland area. We’ve seen a lot of technology advancements that have revitalized

fields. We’ve seen an industry that just keeps on giving.

“This industry will continue to keep on giving. One of the comments earlier today of someone speaking to me was, ‘What do you think of commodity prices?’”

“I think we’ve been through it before. This, too, will pass. People will be back at work. We’ll all come together as communities. We’ll continue to work hard. We’ll take reduced work week, if that’s what’s required. And we’ll have a thriving industry for many, many years to come.

Roszell said he was proud to be born and raised in Saskatchewan. He lived in some towns that are now ghost towns. “It makes me proud to come back here. My three children were all born in Calgary, but they would swear they were Saskatchewanians. They bleed green.”

“What differentiates Saskatchewan and the Saskatchewan oilpatch? I think it was made in many comments today – the work ethic of the people.

Many of us grew up in rural Saskatchewan and learned the value of a dollar. We started working at 12 years old – paper routes, grocery stores. We learned hard work achieves success. I think that differentiates a lot of people

of Saskatchewan.

“Innovation matters. People that learn to fix things with baler twine and duct tape, they learn how to innovate.

As you wander around the grounds today, you’ll see that innovation displayed in new technology throughout the oil show,” Roszell said.

He continued, “I can’t comment enough about what was mentioned

by Minister (Bill) Boyd and Premier (Brad) Wall – a stable political environment. Investors and companies alike can chose to invest anywhere in this global world in the energy industry. To know that we’ve got a stable royalty regime, what we’re get for return on our dollars; Premier Wall made one comment to me today that was really compelling. “‘Neil, thank you for helping Saskatchewan. We’re just going to stay out of your way. We want you to build businesses, be successful, and help the province along.’

“Thank you Saskatchewan for affording Raging River and I the opportunity to help the Saskatchewan oilpatch. We look forward to many more years of development; exploitation of the people’s own resource; creating jobs in more communities. Thank you again,” Roszell concluded.

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PIPELINE NEWS July 2015

New pilot truck service launched Estevan Escorts, at your service Estevan – Looking at a looming layoff, Barrie McMillan decided the time was right to strike out on his own and start his own pilot truck service.

So with fresh decals on his truck, lights, D (for “dimension”) sign, fire extinguisher and first aid kit, he fired up operations in late May. A second truck, to be run by owner-operator Cecil Munro, was in the process of being kitted out.

“I figured there should be a proper service for pilot cars in Estevan; not a hot shot, but strictly pilot cars,” McMillan said at the Tim Hortons, where his wife., Rhonda is in management.

Rhonda does all the admin work for Estevan Escorts. “She might be driving once things get busy,” he added.

Using smaller

vehicles to guide larger ones is nothing new to McMillan. “I’m a tugboat captain,” he said.

“I’m a 150-ton ticketed skipper. I used to run barges down the B.C. coast, from Victoria to Alaska. With tugs I travelled all around (Vancouver) Island.

I moved out here because the work got dry five years ago. We weren’t getting enough work,” he said.

McMillan trucked seafood on Vancouver Island when he came off the tugs.

Munroe said, “I have done pilot service in the past with Sams; Baxters. I’ve done hotshot and delivery.

“Things slowed right down. I still have a courier business on the side,” he added.

McMillan said, “We were laid off with the (spring) breakup.”

They made the de-

Barrie McMillan has truck, will pilot. A second unit was in the process of being prepared when this photo was taken on May 25. Photo by Brian Zinchuk

cision to go ahead with this new venture at that time. They knew some people are looking for pilots, and there’s a constant flow of trucks hauling oversized loads from the U.S., passing through the area.

So McMillan got

his truck rigged up with lights, signs, and all the associated safety gear he would need. Munroe’s truck was next on the list, when the pair spoke to Pipeline News in late May. Both drive Dodge 1500 pickups.

McMillan has had

his fitted out with an auxiliary 400 litre tank to provide extra range.

“The truck is totally equipped,” he said. This includes radios, both handheld, and hardmounted.

There the possibility of adding a pole

on the truck to ensure clearance for high loads.

“The truck is ready to go,” McMillan said.

“Now it’s push time.

We’re a serious pilot truck business. We’re in this for the long haul.”

PIPELINE NEWS July 2015

B13

Finning to acquire Kramer Cat

Tim Kramer, president of the mulĆ&#x;-generaĆ&#x;onal company Kramer Ltd., has been interviewed numerous Ć&#x;mes by Pipeline News. File photo

Regina, Vancouver â&#x20AC;&#x201C; On May 6 Finning International Inc. announced it has reached an agreement to purchase the operating assets of the Cat dealership of Kramer Ltd. for approximately $230 million, subject to working capital adjustments.

In 2014, the acquired dealership business generated approximately $275 million in revenue.

Finning will become the approved Cat dealer in Saskatchewan in July of this year, subject to customary closing conditions. After a remarkable 70 years of service in Saskatchewan, the Kramer family has decided to retire from the equipment dealership business.

This acquisition combines complementary capabilities, customer bases and highly skilled employees across Finningâ&#x20AC;&#x2122;s territory in British Columbia, Alberta, Yukon, Northwest Territories and selected regions of Nunavut with Kramerâ&#x20AC;&#x2122;s presence in Saskatchewan. â&#x20AC;&#x153;Expanding Finningâ&#x20AC;&#x2122;s Western Canadian operations into Saskatchewan is a great strategic fit and rep-

resents a compelling growth opportunity for our company, employees, customers and shareholders,â&#x20AC;? said Scott Thomson, president and CEO of Finning International. â&#x20AC;&#x153;We have great respect for the Kramer family legacy and everything they have achieved. We will build on their strong heritage by growing the business, providing our customers with a terrific experience, and contributing to communities in Saskatchewan.

This acquisition is also a testament to our current Finning employees in Canada who have worked tirelessly to put us in the strategic and financial position to make this opportunity possible.â&#x20AC;? â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s been an honour to lead the Kramer Cat dealership for the past 23 years and I am proud of our organizationâ&#x20AC;&#x2122;s many accomplishments,â&#x20AC;? said Tim Kramer president of Kramer Ltd. â&#x20AC;&#x153;Having spent considerable time with members of the Finning team, I am confident Finning will be a great addition to the province of Saskatchewan and our employees

are joining a successful Canadian business that cares about its employees, customers and the community.â&#x20AC;?

The two companies already share common customers who operate across these adjacent territories and will benefit from the continuity and support of a single dealer. Customers will also benefit from improved equipment and parts availability, world-class product support and access to Finningâ&#x20AC;&#x2122;s extensive branch network of 50 locations.

For Finning, Saskatchewan is a highly attractive growth opportunity that diversifies its revenue base into sectors such as potash and uranium. The acquisition will be funded with cash and will be immediately accretive to earnings per share.

Joining Finning is a team of 475 Kramer employees with a deep

understanding of the local market and wellestablished customer relationships throughout the province at parts, sales and service locations in Estevan, Kindersley, Battleford, Regina, Saskatoon, Swift Current and Tisdale in addition to Cat Rental Stores in Regina and Saskatoon. â&#x20AC;&#x153;This is a historic day for Finning. We are passionate about keeping our employees safe, enabling our customersâ&#x20AC;&#x2122; success and building communities. With that in mind, we are pleased to appoint Tony de Sousa as the executive to lead the Saskatchewan operations. In addition to his impressive experience, Tony brings a genuine commitment to developing our people, growing our business and serving our customers,â&#x20AC;? said Juan Carlos Villegas, president of Finning Canada and COO of Finning

International.

Tony de Sousa will be based in the Saskatchewan headquarters, which will remain in Regina and he and his family will move from Edmonton to Regina. He has been with Finning for 39 years and has extensive senior leadership experience in sales, service and operations. â&#x20AC;&#x153;Iâ&#x20AC;&#x2122;ve known Tim Kramer for many years and have tremendous respect for the business he, Don and the entire Kramer family have built in Saskatchewan,â&#x20AC;? said Tony de Sousa, vice president, Saskatchewan for Finning. â&#x20AC;&#x153;Iâ&#x20AC;&#x2122;d like to extend a heartfelt welcome to Kramer employees to the Finning family. Iâ&#x20AC;&#x2122;m looking forward to learning from their experience, customer relationships and understanding of the local market.â&#x20AC;?

Finning International Inc. is the worldâ&#x20AC;&#x2122;s

largest Caterpillar equipment dealer delivering service to customers for over 80 years.

Finning sells, rents and services equipment and engines to help customers maximize productivity. Headquartered in Vancouver, B.C., the company operates in Western Canada, Chile, Argentina, Bolivia, Uruguay, as well as in the United Kingdom and Ireland.

As the Caterpillar dealer in Saskatchewan, Kramer sells, rents and provides service to diverse market segments across the province.

Founded in 1944, Kramer employs approximately 475 people, including approximately 160 mechanics, and operates seven dealership operations in Regina, Saskatoon, Estevan, Swift Current, North Battleford, Kindersley and Tisdale, as well as rental locations in Regina and Saskatoon.

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B14

PIPELINE NEWS July 2015

Powell Autobody handles everything from light trucks to rigs Â&#x201E; By Brian Zinchuk

This tri-drive truck is in for new paint at Powell Autobody. The same truck was in about 10 years ago. /t did preĆŠy well, given that David said gravel roads are hard on trucks.

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Carnduff â&#x20AC;&#x201C; David and Linda Powell have owned and operated Powell Autobody of Carnduff for 21 years, and their business has been built largely on supporting the oilpatch. â&#x20AC;&#x153;We wanted the new shop in our 20th year, but it didnâ&#x20AC;&#x2122;t happen,â&#x20AC;? said David. â&#x20AC;&#x153;We started in the 20th year and finished in the 21st.â&#x20AC;? â&#x20AC;&#x153;I came out here in 1994 to paint five trucks for Fast Trucking. I never left.â&#x20AC;?

Indeed, there has been a strong tie with Fast Trucking and the Day family that owns and operates the Carnduff-based rig mover. â&#x20AC;&#x153;I worked in Fast Truckingâ&#x20AC;&#x2122;s yard for seven years. I got their trucks all green. I painted

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The business caters to light and heavy vehicles, oilfield, industrial and agricultural equipment as well. That includes rigs and trailers. They specialize in sandblasting and painting drilling rigs.

This past spring has been noticeably slower than previous years. David called it a breather, saying, â&#x20AC;&#x153;This is the first spring I havenâ&#x20AC;&#x2122;t worked seven days a week in 20 years.â&#x20AC;?

Thatâ&#x20AC;&#x2122;s because spring breakup is when most companies get caught up on their maintenance, which in this case, includes autobody work.

There are nine people on staff. Two are journeyperson autobody and paint technicians.

One is an industrial painter. Two are sandblasters. There are two office staff and two

helpers.

While they are able to do mobile sandblasting, David said, â&#x20AC;&#x153;Iâ&#x20AC;&#x2122;d rather do it in my own yard and paint them in our new 30 by 60 foot paint facility.â&#x20AC;?

David still paints, and more. â&#x20AC;&#x153;I do everything. I sweep the floor and haul garbage if I have to.â&#x20AC;?

Probably threequarters of their work is oilpatch related.

Some of that has been drilling rigs, including Carnduff-based Totem Drilling and Betts Drilling. â&#x20AC;&#x153;I did four rigs last year, the most Iâ&#x20AC;&#x2122;ve ever done,â&#x20AC;? he said. â&#x20AC;&#x153;Crusader 1, I did the whole thing. Iâ&#x20AC;&#x2122;ve done lots of Trinidad, Champion, Ensign, CanElson. Iâ&#x20AC;&#x2122;ve done work pretty well for everyone.â&#x20AC;?

When rigs come in for a Level IV certification inspection, a new coat of paint is par for the course. â&#x20AC;&#x153;I do the inspection blast for them and they fix everything up,â&#x20AC;?

David said.

Theyâ&#x20AC;&#x2122;ve also painted numerous service rigs. ɸ Page B15

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PIPELINE NEWS July 2015

B15

Linda, leŌ, and David Powell have been operaƟng Powell Autobody for 21 years. This is the interior of their new, large shop. /t’s big enough to swallow the substructure on a drilling rig.

ɺ Page B14 When it comes to the local trucking companies, of which Carnduff has plenty, there’s always work to be done. It could be a smashed up front end, a fibreglass fender, or something else. “Gravel just eats them,” he noted.

The company has been very much a family affair. Linda said, “I’m the administrator.”

“She pulls the reins in,” David added with a smile.

Their three daughters, Joey, 25, Jamie, 23 and Jenna, 22, have all pitched in over the years, occasionally pulled out of school during busy times.

“They’ve masked, sanded and prepped,” David said. “They help out. They’ve got their own things

now.”

Working so closely with family can be testy for some families, with work following them home to the supper table. Linda said, “It’s not allowed in our hot tub.”

The expansion to the shop is 60 by 120 feet, with a 20 foot ceiling. There are three 20-foot wide, 18-foot tall doors and one 16 by 16. Those large doors can swallow a substructure of a drilling rig. The end bay is a paint booth.

There’s a new frame machine on site as well, capable of handling vehicles up to a one-ton in size.

“We’ve got plenty of room for collision work on big trucks,” David said.

Since an awful lot of oilfield miles put on

trucks are done on gravel roads, there’s a neverending need for windshield replacements.

“We do over 300 windshields a year,” David said, adding they are an SGI-accredited shop for light vehicles, and working towards a similar accreditation for heavy trucks once their facility is completed.

“There are some days we just have windshield days. We’ll do eight in a day,” he said.

“We stock pretty well every half-ton pickup windshield there is.”

That’s important, as he noted “We’re out in the middle of nowhere.”

“If a truck hits a duck during the day, we’ll work into the night to have it changed for the next day.”

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PIPELINE NEWS July 2015

Estevan OTS Golf Tourney

B16

Phil Amosah of Sun Country Well Servicing tees oÄŤ on the hole-inone contest.

BreĆŠ Cambpell makes an approach shot.

The Estevan OTS Golf Tournament took place right after the Weyburn Oil Show. The event took place June 5-7 at TS&M Woodlawn Golf Course.

Photos by Brian Zinchuk

LeĹ&#x152;Í&#x2014; Bill Wee, right, vice-president of operaĆ&#x;ons for Legacy OilĐ˝Gas, checks out his GPS before making his hole-in-one aĆŠempt.

Dale Felgate with Stream Flo whacks it out of the sand.

Bob Hahn of Stream Flo baĆŠles out of a bunker. Stream Flo sponsored cab rides for the event.

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Glenn Wiens of Gibson Energy takes his shot at the hole-inone contest.

June 2

Ryan DeLeeuw of CERL has his game comfused. He thinks itÎ&#x2013;s pool.

B17

Weyburn Oil Show Golf

PIPELINE NEWS July 2015

AboveÍ&#x2014; MEP oÄŤered refreshments at one of the holes, with the MEP Margaritaville. From leĹ&#x152; are David Hammermeister, Angela Eeilsen, Kyla Espina and Melissa Swayze.

RightÍ&#x2014; Rain threatened, but the exhibitorsâ&#x20AC;&#x2122; tournament was spared the downpour that hit Estevan that day. Here a group of golfers pose on the back nine.

Bill Fraser of AECOMâ&#x20AC;&#x2122;s White City oĸce serves up some grub at the oil show exhibitorâ&#x20AC;&#x2122;s golf tournament.

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PIPELINE NEWS July 2015

Western Star adds Estevan to its chain

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This is the expansion lobby with a treats area.

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Estevan – Continuing its build-out of hotels throughout southeast Saskatchewan, Western Star has added what is arguably its crown jewel to their chain.

The new Estevan property, known as the Western Star Signature Hotel and Conference Centre, is located on Kensington Avenue. It is a step up from their other properties. For one, everything seems bigger. The lobby is much larger, the breakfast area is substantially larger than their other locations, the rooms are bigger and even the halls seem a little wider.

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The new hotel opened in late June, and a grand opening is planned for later this summer.

The 120-suite hotel has a full kitchen in every suite. That includes a convection microwave, cooktop, full-size fridge, sink, dishwasher, and all the dishes, pots and cutlery needed.

Western Star began in 2012 with its first location in Carlyle.

This was followed by Redvers, Esterhazy, Stoughton, Carnduff and Melita, Manitoba.

The new Hampton Inn & Suites on the east side of Regina is also part of the group. The chain’s footprint now covers almost the entire southeast Saskatchewan/southwest Manitoba oilpatch.

With successive properties they found that rooms equipped with kitchens were always the first to be occupied, thus Carnduff and Melita, and now Estevan, were built with that in mind.

The Estevan location also adds numerous rooms in its basement.

These include a boardroom, three meeting rooms varying in size.

The meeting space totals 9,000 square feet.

They have a portable riser and removable dance floor for parties and weddings. Each room is separate, and there are no dividers, so you shouldn’t hear the speaker in the room next door.

The large gym is also substantially larger than what has been offered in their previous hotels. It is in the basement, allowing for 24-hour operation without bothering other guests trying to sleep.

The Estevan location has a unique feature, a media room that will be filled with theatre seating and multiple large screen TVs. It will provide an area for guests to gather and hang out, away from their rooms, but still in the building. ɸ Page B19

PIPELINE NEWS July 2015

The breakfast area can seat Ďł5 people at a Ć&#x;me.

Éş Page B18 The breakfast area features a hot and cold breakfast, included with a nightâ&#x20AC;&#x2122;s stay. Thereâ&#x20AC;&#x2122;s seating for about 75 people in the breakfast area. Breakfast bags-to-go are also offered.

There are four types of suites. The double queen is the most common, at 88. Then thereâ&#x20AC;&#x2122;s the king suite, of which there are 22 The largest rooms are the 12 executive king. These rooms are very large, with kitchens larger than you would find in some houses. They have large soaker tubs and rainfall showers.

The last type of room are wheelchair accessible rooms, of which there are eight. There are two elevators provided.

The entire parking lot is also paved. There is room on the property for a future restaurant, should the market warrant.

Ronny Khetarpal is the general manager, having transferred over from the Hampton Inn in Regina. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re quite customer-focused and customercentric,â&#x20AC;? he said, noting feedback from previous hotels was used in the design of this one. Some

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This is a king suite. Like all suits, it has a Ĺ&#x2021;l kitchen.

examples are the inclusion of full kitchens for each suite and full-sized, modern appliances. The entire parking lot is paved, and there is room for semitrucks and buses. They can accommodate full frac crews, and their trucks.

As for the clientele, he expects two-to-three night stays to be the average expected stay, but that will depend on projects and bids on work happening in the area. â&#x20AC;&#x153;We absolutely expect long stays as well,â&#x20AC;? he said.

Pat Laskey, director of sales and marketing, said, â&#x20AC;&#x153;The difference is all of our product is A+, but this is AAA+.

Laskey noted the need for more convention space in Estevan, saying, â&#x20AC;&#x153;We know a lot of oilfield companies have Christmas parties. Thereâ&#x20AC;&#x2122;s conferences, weddings, showers and awards.â&#x20AC;?

She added thereâ&#x20AC;&#x2122;s also space for private, confidential meetings.

While the hotel itself will not cater to these events, they have made arrangements with several caterers who will be able to provide service.

At least 15 to 20 people will be employed, and they have been successful in finding local workers.

There have been a lot of resumes this time around.

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PIPELINE NEWS July 2015

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PIPELINE NEWS July 2015

B21

CAPP foresees oil log jam Calgary â&#x20AC;&#x201C; The Canadian Association of Petroleum Producers is raising the alarm for industry to increase transportation capacity to meet growing oil production and demand to 2030.

CAPP estimates oil will grow 43 per cent to 5.3 million barrels per day in 16 years from 3.7 million in 2014 while global demand keeps pace.

Increased transportation capacity, in all forms, is therefore needed to meet growing domestic and international demand for Canadian oil.

Thatâ&#x20AC;&#x2122;s one of the conclusions that CAPP makes in its 2015 Crude Oil Forecast, Markets and Transportation Report released on June 9. â&#x20AC;&#x153;Demand for Canadian oil in Eastern Canada, the United States and globally remains strong,â&#x20AC;? said Greg Stringham, CAPPâ&#x20AC;&#x2122;s vice-president, oil sands and markets in a news release.

The International Energy Agency reports global demand for energy, including oil, is expected to grow 37 per cent over the next 25 years.

Canada has 173 billion barrels of oil, the thirdlargest proven reserve in the world. However, today Canada only produces 3.7 million barrels of the 93 million barrels consumed every day around the world. â&#x20AC;&#x153;We have the energy the world needs â&#x20AC;&#x201C; our challenge is getting it there,â&#x20AC;? Stringham said. â&#x20AC;&#x153;Connecting Canadaâ&#x20AC;&#x2122;s growing supplies to these markets safely and competitively is a top priority. â&#x20AC;&#x153;Over the next two decades, we believe all forms of transportation will still be needed to move Canadian oil to markets to the east, west and south.â&#x20AC;?

The oilsands remain the primary driver of oil growth in Canada, with production reaching four million bpd by 2030.

Conventional oil production in Western Canada, including condensates, is projected at 1.3 million bpd by 2030. Eastern Canadian offshore production is forecast at 91,000 bpd by 2030.

In light of current low prices, oil producers in Canada continue to evaluate their growth plans. This market uncertainty is reflected most in the oil sands growth range in this yearâ&#x20AC;&#x2122;s forecast.

The range indicates future projects are under review.

CAPPâ&#x20AC;&#x2122;s June 2014 forecast estimated total oil production in 2030 at 6.4 million barrels per day.

While the two annual forecasts are similar during the early years of the forecast period, the slower pace of production in the latter years is the result of reduced capital spending plans due to the sharp decline in global oil prices.

Total oil and natural gas industry capital investment is forecast at $45 billion in 2015, down nearly 40 per cent from $73 billion in 2014.

In the oil sands, 2015 capital investment is forecast to be lower by almost a third to $23 billion compared to $33 billion in 2014.

Market access in all directions remains priority.

Refineries in Quebec and Atlantic Canada currently import nearly 80 per cent of their oil from foreign sources.

The U.S. Gulf Coast, the largest refining cluster in the world with significant capacity to process heavy crude oil, is a major potential growth market for Canadian heavy oil.

There is also a strong and growing demand for Canadian oil in Washington, California, Asia and Europe.

To reach these markets, more transportation capacity and tidewater access are required. â&#x20AC;&#x153;Several pipeline projects are at various stages in the regulatory process,â&#x20AC;? Stringham said. â&#x20AC;&#x153;These projects target three different markets and would provide Canadian producers with the market access necessary to become a truly global

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CAPPâ&#x20AC;&#x2122;s annual forecast is developed from oil producer survey data, collected in March and April 2015, and CAPP analysis of historical trends, expected drilling activity, recent announcements and ongoing discussions with industry stakeholders and government agencies.

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PIPELINE NEWS July 2015

Bonnie DuPont inducted into Hall of Fame Weyburn – Long a part of the selection process for new inductees to the Saskatchewan Oil Patch Hall of Fame, Bonnie D. DuPont, M.Ed., ICD.D, was herself honored on June 3, when she was inducted into the Hall of Fame. Here is her induction citation, as read by Minister of Economy Bill Boyd: Like many senior oil executives, Hall of Fame inductee Bonnie DuPont attributes much

of her success to her farm background.

“I grew up on a mixed farm near Swift Current. Anyone who has lived or worked on a farm understands the connection between hard work and success.

It also teaches you to be prepared for and creative about unexpected situations. I think anyone who comes from that background is well prepared for a professional career,” Bonnie

says.

Bonnie earned her Bachelor’s degree (great distinction) from the University of Regina and earned her Master’s degree at the University of Calgary. She is a member of the Institute of Corporate Directors, and a 2006 graduate of the ICD Corporate Directors’ Education Program. She is also a certified human resources professional and is a member of the Interna-

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tional Women’s Forum.

Her education and background helped led her to her first career at SaskPower and then into the agriculture sector. She worked for the Saskatchewan Wheat Pool, and later served on the Board of Viterra, where she was, respectively, the first woman in the executive management and the first woman on the board.

After several years with Saskatchewan Wheat Pool, she moved to Calgary to take a role with Alberta Pool. Alberta Pool merged with Manitoba Pool in 1997, presenting Bonnie with a decision to make.

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Her decision was to move back into the energy sector, joining Enbridge.

“Basically, I had to decide if I wanted to move to Winnipeg or remain in Calgary. I chose Calgary.”

She joined Enbridge in 1998 after 20 years of prior executive experience. She retired from Enbridge after 12 years as the senior executive responsible for information technology, human resources, public and government affairs, corporate governance matters, and corporate social responsibility. In her role, she reported to the president and CEO and was part of a small team of seven that provided strategic leadership to the organization.

She was named to the Top 100 Most Powerful Women in Canada list each year from 2001 to 2006 and in 2007 was inducted into the Top 100 Hall of Fame.

Bonnie was the first woman to join the board of the Calgary Petroleum Club and later became the chair of that board. She continued to serve the industry in a volunteer capacity with the Saskatchewan

Oilman’s Association until earlier this year.

She was awarded the Peter Lougheed Award for Leadership by the Public Policy Forum in October 2013, and will be awarded a Fellowship in the Institute of Corporate Directors on June 4, 2015.

In 2008 she was presented with an honorary doctor of laws degree from the University of Regina and in 2011 received an honorary degree from the Southern Alberta Institute of Technology, recognizing her contributions in the area of science and technology.

Bonnie continues to serve on a number of boards of both publicly traded companies, and not for profit organizations. She is a chair of the Board of Governors of the University of Calgary and has served on that board since 2006.

Bonnie maintains strong ties to Saskatchewan and continues to return home to visit family monthly. In her free time, she and her partner Barry enjoy spending time at their vacation home in Quebec and travelling the world.

PIPELINE NEWS July 2015

B23

MEG Energy CEO inducted into Hall of Fame Weyburn â&#x20AC;&#x201C; William (Bill) McCaffrey, president and CEO, MEG Energy Corp., was one of three inductees honored into the Saskatchewan Oil Patch Hall of Fame on June 3. The induction took place during the Saskatchewan Oil and Gas Show in Weyburn. Minister of the Economy Bill Boyd read the citation, quoted here: Bill McCaffrey is the founder, president and CEO of MEG Energy Corp, which was formed in 1999.

Under his leadership, in just 10 years MEG grew to become one of the largest private oil and gas companies in Canada, focused on bitumen development and production.

Bill comes from an oil and gas family and was born in Regina when his dad was working as a scout for Shell.

The McCaffrey family moved often with his dadâ&#x20AC;&#x2122;s work, and they ultimately landed in Calgary, where Bill has spent most of his life.

Bill spent 17 years at Amoco Canada Petroleum Company in various managerial positions including manager of business development and growth for Amocoâ&#x20AC;&#x2122;s oil sands developments.

During his time in this position, Bill was responsible for the growth plans of Amocoâ&#x20AC;&#x2122;s oil sands leases which contained nearly 80 billion barrels of oil in place. At Amoco, Bill also led the team responsible for the initiation and development of the Primrose thermal oil sands project, a 25,000 barrel per day project, which was one of the first examples of commercial in situ bitumen production.

The commercial project Bill and his team developed remains a core asset for the company that bought Amocoâ&#x20AC;&#x2122;s properties and

the technology is still in use. But with Amocoâ&#x20AC;&#x2122;s divestment, Bill left the company to start his own venture at a challenging time for the industry. Oil was about $12 per barrel and predicted to go as low as $5 and was out of favour with investors.

While others saw risk, Bill saw opportunity. At a time when major oil companies had put a halt on land acquisition and development, Bill saw that costs were low and started buying high quality assets in the relatively undeveloped Christina Lake area. Along with MEGâ&#x20AC;&#x2122;s two co-founders and initial investors, Steve Turner and Dave Wizinsky, Bill put in personal savings to purchase what would be MEGâ&#x20AC;&#x2122;s first land purchases. â&#x20AC;&#x153;It was one of those decisions that walked a fine line between brilliant and stupid,â&#x20AC;? Bill says, â&#x20AC;&#x153;We started off working out of my basement with a ping-pong table as our boardroom and we worked for nothing for four years.

But we believed in the company and the concept, and we invested a lot of time and sweat equity into building its success.â&#x20AC;?

MEG Energy went public with an IPO in August 2010, and the offering was awarded IPO of the Year. The company has continued to maximize value through a measured growth plan and is currently targeting average production of 78,000 â&#x20AC;&#x201C; 82,000 barrels per day in 2015. Corporate assets include ownership of a major pipeline and tank terminal infrastructure linking its bitumen leases to key energy hubs in Edmonton, Alberta and beyond.

To fund its growth, MEG has raised more

Premier Brad Wall, leĹ&#x152;, and Minister of Economy Bill Boyd, right, Ĺ&#x2021;ank Bill McCaÄŤrey, who was inducted into the Saskatchewan Oil Patch Hall of Fame. Photo by Brian Zinchuk

than $9.0 billion (CAD) in equity and debt over the last 15 years. â&#x20AC;&#x153;We didnâ&#x20AC;&#x2122;t even know how to raise money at first. Today, we are proud to have high quality investors from around the world including institutional investors, multi-national

corporations and investments from China. It took a great team effort to achieve this.â&#x20AC;?

Oilsands Review Magazine awarded MEG Energy the Producer of the Year award in both 2010 and 2014.

Bill was nominated by the Canadian Venture

Capital Association as its annual â&#x20AC;&#x2DC;Entrepreneur of the Yearâ&#x20AC;&#x2122; in 2011, and in 2014 he was awarded both â&#x20AC;&#x2DC;CEO of the Yearâ&#x20AC;&#x2122;

by Alberta Oil Magazine and â&#x20AC;&#x2DC;Entrepreneur of the Year â&#x20AC;&#x201C; Prairiesâ&#x20AC;&#x2122; by EY. Bill has degrees in Biology/Chemistry and

Civil Engineering from the University of Alberta and an Executive MBA from the University of Western Ontario.

Bill is married with two children, and his wife Janice is a threetime Olympian for Canada in the sport of Race Walking.

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PIPELINE NEWS July 2015

Jim Bertram inducted into Hall of Fame Weyburn – Jim Bertram, executive chair, Keyera Corp., was inducted into the Saskatchewan Oil Patch Hall of Fame on June 3. The induction took place at the Saskatchewan Oil and Gas Show in Weyburn. His citation was read by Minister of Economy Bill Boyd. It read as follows: When it comes to having deep roots in Saskatchewan, you can’t go much deeper than those of Keyera executive chair Jim Bertram.

His family settled here right after the Riel Rebellion.

“My great-grandfather from PEI was a captain in the Canadian army who brought his men all the way from PEI to the prairies, arriving after the rebellion

had been settled. He liked what he saw, returned with his men to PEI and then brought his family out here by railroad in 1885.”

His family settled, homesteaded and still owns farmland in the Piapot area near Maple Creek.

Growing up, Jim was more interested in sports than business.

His passion for baseball and hockey took him to every corner of the province. The same coach for both sports, Glen Hanson, was the best coach, best motivator and a major inspiration for his life in sports and business.

“I played junior hockey for three years with the Medicine Hat Tigers. It was a great

experience but who needs a 5’ 9” checker, so I concluded that I was better suited for school than for professional hockey.”

After receiving a commerce degree from the University of Calgary in 1981, one of his former coaches, Gord Cowan, another Saskatchewan leader, helped him get a job with the French multinational oil company, Aquitaine Company of Canada, whose Canadian operations were eventually taken over by Canterra Energy. Jim spent eight years with the company in various positions ranging from corporate economics to marketing. Jim spent the next 10 years working first for Poco Petroleum

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and then Amerada Hess Canada in marketing roles.

Jim has spent the last 16 years with a group of related companies starting with Gulf Canada Resources where he rose to the position of vice president-marketing for worldwide operations.

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They have had a 20 per cent compound annual growth rate in total returns and 13 dividend increases. He has seen the company grow from a modest-sized midstream company with a market capitalization of $500 million to an industry leader in Alberta.

Keyera today is a $7 billion company with over 1,000 employees.

Prior to becoming executive chair, Jim served as Keyera’s president and CEO. He is also a director of Legacy Oil + Gas Inc. Jim is married with two children. He and

his wife, Cindy, enjoy spending time in Palm Springs and visiting their daughter, Allie, in Australia. He enjoyed returning, vicariously, to his hockey roots by following his son, Dan, who was a member of two gold-medal winning Canadian Junior Hockey teams.

Jim continues to have strong ties to Saskatchewan where most of his family still live and work. He believes the homegrown work ethic of Saskatchewan people makes them well-suited for the oil and gas industry so he likes to hire them whenever he can. He likes to tell the old joke that has often made the rounds in Calgary: “What do you call someone from Saskatchewan working in the oil industry? Boss.”

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PIPELINE NEWS July 2015

Sask. Oil & Gas Show scenes

B25

At the Spearing Service Ltd. booth serving up some really good food were, from leĹ&#x152;, Darcy McCrimmon, Ken McClement, Darcy Hahn, Marvin Rinas and Derek Leachman.

An aerial view of the show, thanks to a ride in Dennis Manil's plane.

4927 Attendees The exhibiĆ&#x;on hall was busy on day one.

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PIPELINE NEWS July 2015

Imperial proposes Cold Lake expansion

By Geoff Lee Bonnyville – The Bonnyville & District Oil and Gas Show got underway as Imperial Oil Ltd. plans to further expand its Cold Lake operations with a thermal oilsands project called Midzaghe.

The proposed Midzaghe project would produce about 45,000 barrels of bitumen a day by in situ solvent assisted steam assisted gravity drainage.

Bitumen would

be recovered from the Grand Rapids formation with a project lifespan of over 30 years.

Midzaghe follows Imperial’s $2 billion expansion of its Nabiye oilsands facility that is slowly ramping up to produce 40,000 barrels of bitumen in 2015 by cyclic steam stimulation.

The Midzaghe site lies south of Nabiye and is located about 23 kilometres north of Cold Lake.

An Imperial Oil representative briefed

Bonnyville officials on the proposal in advance of the oil show held June 17-18 held at the Centennial Centre.

“We’re very excited to hear about the expansion and looking forward to news from some of the other oil companies as well,” said Bonnyville CAO Mark Power with the impact of low oil and gas prices on the economy top of mind.

“I think it’s going to have a similar impact to what has happened

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“We’ll see for an extended two year period of construction – we’ll see a lot of workers in the area.

“After the project is completed, it will probably create over 100 full-time jobs which is really good for the local economy.”

Imperial submitted a project summary of Midzaghe to the Alberta Energy Regulator (AER) on April 20 noting bitumen would be transported by an existing pipeline system to Edmonton and Hardisty.

The total project area covers about 133 sections of Imperial’s Cold Lake operations.

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tal approval under the Alberta Environmental Protection and Enhancement Act to include the proposed project.

Pending regulatory approval and full project funding construction could begin by 2019 and production as early as 2022.

Power anticipates the project could generate work for service companies that are based in Bonnyville with the bulk of construction jobs going to Cold Lake that is closer to the project site.

“I understand from talking to the representative from Imperial Oil who came out to speak to us about the impact on the local economy that they haven’t decided whether they are going to live and rent and have their construction workers stay in the community or put up a camp,” he said.

“So that decision hasn’t been made, but traditionally Imperial Oil has not brought in a camp and they’ve stayed in the local community.

“We’re ready for that no matter what with the work camps we already have in place in town and the hotels that are already here.”

A new Comfort Inn opened in Bonnyville in time for the oil and show adjacent to ongoing construction of

a Microtel hotel in the Eastgate development that includes two new apartment buildings.

Power, who is also a developer, said all 32 lots that he has for sale in Cold Lake are still on the market due to the downturn and a glut of new housing in the city for work crews and residents to choose from.

“In Cold Lake they’ve had sort of a mini boom going on with an incentive program to build apartment buildings,” he explained.

“A lot of those are coming online now. If you’ve got a choice between old and new for the same price, the consumer is probably going to choose the new.

“But overall, the impact of 500 or 600 new apartment (units) in the area is having an impact on vacancy rates and rental rates which from the renters’ perspective is going to have a positive impact.”

Imperial’s meeting with the town is part of a lengthy public consultation period with a variety of public and Aboriginal stakeholder groups over the duration of the project.

Consultations will take place with Beaver Lake Cree, Cold Lake, Heart Lake, Kehewin Cree and Whitefish First Nations.

PIPELINE NEWS July 2015

B27

Sky is falling on land sales

By Geoff Lee Regina –Land sales have crash landed with the first three sales of petroleum and natural gas rights in 2015 generating total revenues of $32.7 million compared to $110 million a year ago.

This year’s total includes the June sale that brought in $9.8 million in revenue at an average price of $570 per hectare. Last year’s June sale added $11 million to the provincial coffers.

The latest sale saw the Weyburn-Estevan area receive the most bids with sales of $6.1 million.

The Lloydminster area was next at $1.9 million, followed by the Swift Current area at $1.4 million and the Kindersley-Kerrobert area at $398,141.

The highest price paid for a single parcel was $1.1 million by Plunkett Resources Ltd. that acquired the 259-hectare lease southeast of Estevan.

The highest price on a per-hectare basis was $5,111 by Highrock Resources Ltd. that bid $330,937 for a 64.75-hectare lease south of Stoughton.

The next sale of Crown petroleum and natural gas rights will be held on Aug. 10.

In other news the final two modules of the Ministry of Economy Integrated Resource Information System (IRIS) will be implemented this fall enabling industry to conduct some of their regular business activities with the government online 24/7.

Industry personnel will be able to manage their oil and gas dispositions and submitting confidential land sale bids securely according to a project update by Economy Minister Bill Boyd on June 11.

“Oil and gas operates 24 hours a day,” Boyd said.

“Offering online self-service to industry for some of their day-to-day activities with the province recognizes that business is conducted anytime and anywhere with an Internet connection.”

Weyburn-Estevan area (numbers rounded up) The top purchaser of acreage in this area was Scott Land & Lease Ltd. that spent $1.7 million to acquire eight lease parcels.

The top price paid for a single lease was $1.05 million by Plunkett Resources Ltd. for a 259 hectare parcel situated within the Pinto Midale and

Frobisher Beds Pools, 23 kilometres southeast of Estevan.

The highest dollar per hectare in the sale was received from Highrock Resources Ltd. that paid $5,111 per hectare for a 64.75 hectare parcel located within the Viewfield Bakken Oil Pool, 25 kilometres south of Stoughton.

Lloydminster area The top purchaser of acreage in this area was Plunkett Resources Ltd. that spent $859,395 to acquire a 259 hectare parcel situated eight kilometres north of the Northminster North Sparky Sand Oil Pool, 18 kilometres north of Lloydminster.

This parcel was the highest dollar per hectare in this area at $3,318 per hectare.

Swift Current area The top purchaser of acreage in this area was Prairie Land & Investment Services Ltd. which spent $348,057 to acquire four lease parcels.

The top price paid for a single lease in this area was $268,787 by Prairie Land & Investment Services Ltd. for a 420.87 hectare parcel situated partially within the Cantuar Main Cantuar Sand Oil Pool, 23 kilometres west of Swift Current.

The highest dollar per hectare in this area was received from Metropolitan Resources Inc. that paid $965.54 per hectare for a 259 hectare parcel located adjacent to the Swift Current West Basal Mannville Sand Oil Pool, seven kilometres west of Swift Current.

Kindersley-Kerrobert area The top purchaser of acreage in this area was Prairie Land & Investment Services Ltd. that spent $288,151 to acquire five lease parcels.

The top price paid for a single lease in this area was $122,724 by Prairie Land & Investment Services Ltd. for a 259 hectare parcel situated within the Milton Bakken Oil Pool, 23 kilometres north of Alsask.

The single licence offered in this area received no acceptable bids. The highest dollar per hectare in this area was received from Turnstone Energy Inc., who paid $779 per hectare for a 16 hectare parcel located adjacent to the Milton Bakken Oil Pool, 20 kilometres north of Alsask.

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B28

PIPELINE NEWS July 2015

Rush Lake thermal onstream early

By Geoff Lee Maidstone, Calgary – Husky Energy’s 10,000 barrels per day Rush Lake heavy oil thermal project located approximately 20 kilometres east of Maidstone is living up to its name.

Commercial steam operations began on May 20, approximately eight weeks ahead of schedule with ramp-up to full production expected in a short time period.

“Rush Lake is the latest in a series of long life, low sustaining capital thermal projects we are advancing in our heavy oil business,” said CEO Asim Ghosh in a statement.

“Five years ago, we had two heavy oil thermal projects in production and by the end of 2016, we will have 10 projects onstream.”

Current production from Husky’s thermal projects is approximately

44,000 bpd using steam-assisted gravity drainage or SAGD technology.

Including Rush Lake, heavy oil thermal production in the Lloydminster region is expected to add another 34,500 bpd over the next 18 months.

The 10,000 bpd Edam East project is scheduled to be onstream in the third quarter of 2016.

In addition the 3,500 bpd Edam West thermal project has been reconfigured to a capacity of 4,500 bpd and is set to begin production in the fourth quarter of 2016.

The 10,000 bpd Vawn project is also expected to start up in the fourth quarter of 2016.

The projects build on Husky’s track record of using proven thermal technologies and modular, repeatable

construction templates.

These projects also generate a good return on investment for Husky with low operating costs, good netbacks and low execution risk in the current low price environment.

Husky’s producing and planned suite of thermal projects since Pikes Peak in 1984 include Bolney/Celtic, Paradise Hill, Pikes Peak South, Rush Lake pilot, Sandall, Rush Lake, Edam East, Edam West and Vawn.

Additional projects are under evaluation over the medium and long term.

Husky is also continuing to expand its downstream Saskatchewan gathering system in preparation for increased heavy oil thermal production from new plants in the region.

Saturn to revisit oil pay zones Husky’s 10,000 barrel per day Rush Lake heavy oil thermal project located east of Maidstone began commercial steam operaƟons in May about eight weeks ahead of schedule. /ts 10,000 bpd Edam East thermal project shown in this photo is due to come onstream in the third quarter of 2016. File photo

Vancouver – Vancouver-based Saturn Minerals Inc. is raising funds and completing plans to drill a second oil exploration well at its Bannock Creek property in northeastern Saskatchewan.

The moves come following a review of a failed first attempt in May when the drill bit got stuck about 80 metres above the targeted oil pay zones of the Yeoman, Deadwood and Winnipeg sands.

“Exploration and successful discovery has historically belonged to those with perseverance and this project is no exception,” stated Stan Szary, Saturn’s CEO on May 19.

An initial review of the data at the time indicated that a successful second well could be drilled at the location, which would reach the targeted pay zones.

Saturn’s drill team will run deeper surface casing and intermediate casing down most of the length of its proposed second hole.

This will help the drill team to avoid a repeat of a collapsed bore hole in the initial 9-5 exploration well.

Packers and cement back filling will also be utilized to stabilize the hole at depth.

Additional review of geophysical data is presently being reviewed to determine if a modified location is viable to mitigate the effects of local faulting.

The company believes that faulting near the drill target, although important for structural closure, may have also contributed to the lost circulation zones.

Saturn reports the

three targeted oil zones for drilling remain intact and highly prospective for the potential of economic volumes of oil and gas.

Stratigraphic information from the first well has indicated that targeted pay zones will be somewhat shallower than first modeled.

That 9-5 Bannock Creek exploration well encountered multiple lost circulation intervals during drilling due to excessively fine grain sands.

Lost circulation occurs when the drill bit encounters natural fissures, fractures or caverns and mud flows into the newly available space.

Technical problems forced the company to abandon the well and regroup for second drill.

The company has also arranged additional flow through and nonflow through financing as it prepares to drill its second exploration well.

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Estevan OTS donates

(From leĹ&#x152;Íż Friends of the Games co-chair Kelly McConnell, Estevan OilÄŽeld Technical Society president BreĆŠ Campbell and Estevan 2016 Saskatchewan Summer Games cochair Brian Senchuk parĆ&#x;cipated in a cheque presentaĆ&#x;on for $10,000.

Photo by David Willberg

Â&#x201E; By David Willberg Estevan Lifestyles Estevan â&#x20AC;&#x201C; The Estevan Oilfield Technical Society (OTS) has made a $10,000 contribution from their Community Initiatives Grant for the Estevan 2016 Saskatchewan Summer Games.

The announcement was made on June 5 at the TS&M Woodlawn Golf Club, during the first day of the OTSâ&#x20AC;&#x2122;s annual Oilmenâ&#x20AC;&#x2122;s golf tournament.

The money will be directed towards the grandstands at the new athletics field, which is located at the Estevan Comprehensive School.

The OTS will receive naming rights for 10 years on a portion of the grandstands. â&#x20AC;&#x153;We thought it was important to give our kids â&#x20AC;Ś a top-notch place to play,â&#x20AC;? said OTS president Brett Camp-

bell. â&#x20AC;&#x153;The Summer Games is going to bring many different people from all around the province to our community, which is going to create business and growth here.â&#x20AC;?

The OTS announced the community grant program earlier this year. Campbell said the OTS receives a lot of donation requests throughout the year, but they want to support building projects.

Money for the grant program comes from such events as the OTSâ&#x20AC;&#x2122;s annual curling bonspiel and golf tournament. â&#x20AC;&#x153;This year we actually had a fairly substantial chunk of change, so we decided we wanted to give away $20,000,â&#x20AC;? said Campbell. â&#x20AC;&#x153;That was one of the decisions made at the AGM (annual general meeting), so thatâ&#x20AC;&#x2122;s what weâ&#x20AC;&#x2122;re doing, and this is just the first step in it.â&#x20AC;?

They have yet to decide who will benefit from the remaining $10,000. â&#x20AC;&#x153;The OTS group

has always been known as builders in our community,â&#x20AC;? said 2016 Games co-chair Brian Senchuk. â&#x20AC;&#x153;We are very thankful that they chose to assist us in our project at the athletics field. â&#x20AC;&#x153;They will go on record as assisting in building a top notch facility that will be enjoyed by our community for many years to come.â&#x20AC;?

The rebuild of the athletics field began last year, and is to be finished next month. The project, which includes a rebuilt track, will be a lasting legacy of the Estevan 2016 Saskatchewan Summer Games and its supporters.

It will also be home to the Legion Track and Field Club, and local football and soccer programs.

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