Pipeline News August 2015

PIPELINE NEWS Saskatchewan’s Petroleum Monthly

August 2015

Canada Post Publication No. 40069240

FREE

Volume 8 Issue 3

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A3 What is the big deal about S-10?

A5 Steel Reef already expanding North Portal gas plant

A33 North Battleford up beat as oil edges closer

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PIPELINE NEWS August 2015

INSIDE SECTION A 4

TransGas' role in addressing S-10

5

Steel Reef already expanding North Portal gas plant

6

Editorial

7

Opinion

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11 The community has needs

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16 Pembina's straddle plant will be

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PIPELINE NEWS August 2015

A3

TOP NEWS

What is this big deal about S-10?

0LQLVWU\ RI (FRQRP\ RIĂ&#x20AC;FLDOV H[SODLQ 'LUHFWLYH 6 Â&#x201E; By Brian Zinchuk Pipeline News Regina â&#x20AC;&#x201C; Several years ago the provincial government brought in new regulations, known as Directive S-10, with the intention dramatically reducing flaring of associated gas in Saskatchewan.

The three-year grandfather period for previously drilled wells ended on July 1, 2015.

To address these gas conservation requirements, there has been a substantial investment in new gas plant infrastructure, and more on the way. The total investment will be over a quarter billion dollars, at minimum, and much more if you include the construction of a deep-cut straddle plant near Viewfield that will remove ethane that would otherwise end up in every day usage in furnaces and barbecues. That ethane will join the Vantage system and be used in the Alberta petro-chemical industry.

On July 15 Pipeline News spoke to Doug MacKnight, the new acting assistant deputy minister, Petroleum and Natural Gas Division, with the Ministry of the Economy; Brad Wagner, acting director, Petroleum Development Branch; and Lindsay Jackiw, petroleum engineer, Petroleum Development Branch about the impact S-10 has had and will have. MacKnight answered most of the questions.

Pipeline News: July 1 was the day the Directive S-10 came into full effect. Can you explain what S-10 is, and what its significance is?

Doug MacKnight: Itâ&#x20AC;&#x2122;s one of those documents that isnâ&#x20AC;&#x2122;t really easy to summarize as a statement. Needless to say, the goal of the S-10 directive and program is to encourage and support the capturing of the associated gasses being produced from wells in Saskatchewan. Obviously the main benefits of the program are reductions in all sorts of things associated with flaring and venting, not the least of which is environmental factors.

Overall, the directive is about waste in the sense that flaring off a valuable resource is not in our best interest as a province. The collateral issue with that is all the environmental things.

The program itself, what transpired on July 1, is the end of the phase-in period. The first phase looked at new wells coming in after July 1, 2012.

On July 1, 2015, existing wells would fall under the program.

I want to make clear itâ&#x20AC;&#x2122;s not all wells that are producing associated gasses. The threshold is 900 cubic metres per day.

The S-10 directive we have in Saskatchewan is actually modelled on something in place in both Alberta and British Columbia. That measure is used in those jurisdictions as well. What weâ&#x20AC;&#x2122;re do-

ing here, within the Saskatchewan context, is very similar to whatâ&#x20AC;&#x2122;s been done in other jurisdictions.

P.N.: How did we get to this point?

MacKnight: The program itself has been in the works for many years.

Lindsay Jakiw: 2008-2009.

MacKnight: There was a government-industry committee set up to develop the directive. On that group was CAPP, the Canadian Association of Petroleum Producers; at the time the were called SEPAC (Small Explorers and Producers Association of Canada, now known as the  Explorers and Producers Association of Canada, or EPAC); our ministry, the Ministry of Environment, TransGas and SaskPower.

Of course it makes sense to have TransGas at the table because, fundamentally, weâ&#x20AC;&#x2122;ve got issues related to pipes, with the associated gas.

Those agencies, along with us, looked at what was done in Alberta. They had a fairly successful program and developed something that we thought would work in the Saskatchewan context.

The first thing S-10 speaks to is asking companies to really look at the economics of capturing the gas as opposed to venting and flaring it, again, at that 900 cubic metre per day threshold. If itâ&#x20AC;&#x2122;s economic to do so, S-10 speaks to making sure that gas is captured. Where itâ&#x20AC;&#x2122;s not economic, it speaks to ways of reducing the flaring and venting, but it also requires companies to ensure theyâ&#x20AC;&#x2122;re always testing the question: is there a business case to capture the gas?

Our role in that is to monitor the process companies are doing those evaluations, and where theyâ&#x20AC;&#x2122;re doing the evaluation if it is economical to capture it.

P.N.: What are the impacts of enforcing more stringent gas conservation? We are aware of new gas plants at North Portal, Flat Lake, soon at Alameda, and expansion at Viewfield.

The total investment is in the hundreds of millions of dollars. Is there more to come, or is this it?

MacKnight: I canâ&#x20AC;&#x2122;t speak to â&#x20AC;&#x153;the more to comeâ&#x20AC;? question, but I can speak to the preamble; what are the benefits? One of the benefits is weâ&#x20AC;&#x2122;re not wasting it. Thereâ&#x20AC;&#x2122;s value in there. These investments are based on being able to realize that value.

The projects you said are all contributing to the solution, and based on sound economics. Itâ&#x20AC;&#x2122;s tough times on pricing all around, but theyâ&#x20AC;&#x2122;re making the investment.

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with associated gas. Do you think Saskatchewan will ever reach that point, or does it need to?

MacKnight: I think itâ&#x20AC;&#x2122;s a little premature to speculate on what weâ&#x20AC;&#x2122;re going to need going forward. We think S-10 is going to get us where we want to go. Obviously weâ&#x20AC;&#x2122;re going to have to evaluate that. Those kind of arbitrary measures are a bit challenging where the reality is thereâ&#x20AC;&#x2122;s a lot of infrastructure, a lot of investment, to support those kinds of programs. Thatâ&#x20AC;&#x2122;s why our programs really focus on there being a business case.

P.N.: There have been some changes in the administration of the ministry. Can you explain what is going on?

MacKnight: The easiest way to understand it is weâ&#x20AC;&#x2122;ve separated the regulatory function from the development function. My new division is really all about licensing wells, licensing facilities, licensing pipelines and things like that. We really are solely focused on the business of regulation.

The development side of the ministry, the land tenure, the petroleum tenure, as well as the petroleum royalty and the taxation side is now with another division: Minerals, Lands and Resource Policy. We think that separation is healthy, in the sense they can focus on economic development and generating revenues from that. Our job is to focus solely on getting the regulatory business done.

It also aligns much better with the recently-introduced well levy, plus it helps us on the accounting side. When industry pays that levy, they know what theyâ&#x20AC;&#x2122;re buying.

On top of that, though, is the establishment of the new office of sector lead, which Ed Dancsok is heading up. Thatâ&#x20AC;&#x2122;s to allow us to move much more quickly on these strategic priorities, so he can work full-time on advancing those big-ticket items that can advance the oil and gas industry.

Iâ&#x20AC;&#x2122;m the acting ADM, as of June 25. Brad Wagner is the acting director of petroleum development.

On June 25, we had a reorganization within the ministry, a realignment of responsibilities and duties. Todd Han is no longer within the ministry. Ed (Dancsok) reports directly to the deputy (minister) on strategic priorities for the oil and gas sector. Heâ&#x20AC;&#x2122;s an ADM equivalent.

Edâ&#x20AC;&#x2122;s going to be looking down the road and getting some of the tough issues he was trying to work on on the side of his desk, the venting and flaring issue, and the gas issue in the southeast heâ&#x20AC;&#x2122;s looking at from an economic development perspective. ɸ Page A8

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PIPELINE NEWS AUGUST 2015

BRIEFS

Ŷ ĞdžĐĂǀĂƚŽƌ ǁŝƚŚ DĂǀĞƌŝĐŬ KŝůĮĞůĚ ^ĞƌǀŝĐĞƐ ĚŽĞƐ ĮŶĂů ĐůĞĂŶƵƉ ŽŶ Ă ƉŝƉĞůŝŶĞ ũŽď ŶĞĂƌ EŽƌƚŚ WŽƌƚĂů͘ dŚŝƐ ƉŝƉĞůŝŶĞ ƌƵŶƐ ĨƌŽŵ ƚŚĞ ŶĞǁ ^ƚĞĞů ZĞĞĨ EŽƌƚŚ WŽƌƚĂů ŐĂƐ ƉůĂŶƚ ƚŽ ƚŚĞ dƌĂŶƐ'ĂƐ ƐLJƐƚĞŵ͘

Fueling the Future

On June 26 Southeast College announced it is embarking on a new scholarship initiative that allows donors to give directly to fund scholarships in the fulltime certificate program of their choice.

The “Fueling the Future” campaign was named for the College’s connection to the local industries that it serves, as well as the College’s commitment to providing key programing that links students to employment.

“This program is a great way to build a career connection with our students,” said Jeff Richards, Vice President of Strategic Development.

“Potential employers may be contributing to their future employee’s success by choosing to sponsor a scholarship in an area that’s meaningful for them.”

There are three levels of sponsorship: propane ($1,000), diesel ($3,000) and high octane: ($5,000).

One hundred per cent of these donations will be matched dollar-for-dollar by the Government of Saskatchewan’s Innovation and Opportunity Scholarship Fund.

This year, Southeast College is able to offer entrance scholarships to each and every accepted student registered in fall 2015 full-time programs throughout the region. The goal of the “Fueling the Future” campaign is to ensure scholarships can be offered throughout the year as well.

Briefs courtesy Nickle’s Daily Oil Bulletin

TransGas’ role in addressing S-10

By Brian Zinchuk Regina – Collecting associated natural gas is one thing, but once collected, it has to find its way to the burner tip. Crown corporation TransGas provide the backbone for natural gas infrastructure in this province.

Dennis Terry, senior vice-president, TransGas and Bayhurst Gas Business Services, responded by email to our questions about TransGas’ role in addressing S-10.

Pipeline News: Can you explain TransGas’ role in the collection and movement of natural gas?

Dennis Terry: TransGas Limited (TransGas) is a wholly owned subsidiary of SaskEnergy Incorporated – its primary role is the high pressure transmission of natural gas for delivery within Saskatchewan. TransGas owns and operates a transmission system that includes over 15,000 kilometres of highpressure pipeline, 30 compressor station sites, and 25 natural gas storage caverns across the province. This infrastructure is used to store, compress, and transport natural gas supply from Saskatchewan and Alberta to large industrial customers and the more than 550 communities served by SaskEnergy.

TransGas provides transportation service for natural gas that has been gathered, collected and processed by producers and midstream operators (all natural gas transported by TransGas must meet the quality specifications for consumption by the residential and industrial customers in Saskatchewan).

TransGas also acts as an aggregator for Alberta natural gas supply, holding the overall transportation contract with the Alberta transmission company Nova Gas Transmission Limitesd (NGTL) on behalf of all TransGas customers who contract for supply through an Alberta Receipt Service.

P.N.: Does TransGas have a monopoly on natural gas

midstream services in Saskatchewan and, if so, why?

Terry: No, TransGas does not have a monopoly on natural gas midstream services in the province. SaskEnergy/TransGas is actively working with private industry midstream organizations to foster development of natural gas midstream services in order to increase Saskatchewan gas production through the capture of associated gas. This in turn will help decrease the need for natural gas imports from Alberta to meet Saskatchewan’s growing energy demands, assist in the development of the natural gas market in Saskatchewan, and strengthen industry growth and economic activity.

P.N.: How significant is the implementation of S-10 and its goal of conserving natural gas?

Terry: SaskEnergy and TransGas focus on environmental sustainability throughout their operations, and have made significant progress in working to achieve the corporation’s overall GHG emission reduction targets as part of the Government’s province-wide GHG reduction strategy. SaskEnergy/TransGas, through the Government of Saskatchewan, are committed to working jointly with the oil and gas industry to develop a plan to reduce emissions from oil and gas production activities such as flaring and venting of natural gas, the S-10 directive is an important part of this plan.

SaskEnergy/TransGas are supportive of the S-10 regulations, and the commitment to the conservation of associated natural gas within Saskatchewan. Currently the corporation is working in collaboration with the Saskatchewan Ministry of the Economy to engage oil and gas producers, midstream companies and private interest groups in identifying opportunities for alternative uses of natural gas that is currently being flared or vented. ɸ Page A9

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A5

Steel Reef already expanding BRIEFS Nexen hosts North Portal gas plant media at Second plant planned for Alameda area Â&#x201E; By Brian Zinchuk North Portal, Calgaryâ&#x20AC;&#x201C; Provincial regulations meant to substantially increase conservation of associated natural gas and reduce flaring came into full effect on July 1. The Directive S-10 has been a driving factor in the construction or expansion of several gas plants in southeast Saskatchewan. One of those is the new Steel Reef Infrastructure Corp. North Portal gas plant.

Just a few kilometres northwest of North Portal, the plant is situated within sight of the U.S. border.

Two companies have been active in developing that area â&#x20AC;&#x201C; Elkhorn Resources in the Northgate area, and Legacy Oil + Gas in the North Portal area. Coincidentally, both have been acquired by larger firms since the inception of this new gas plant. Elkhorn was purchased by Vermillion Energy and Legacy by Crescent Point. Both of which continue to utilize the North Portal Gas Plant for gas processing. â&#x20AC;&#x153;Thatâ&#x20AC;&#x2122;s a midstreamerâ&#x20AC;&#x2122;s life, said Austin Voss, vicepresident and chief operating officer of Steel Reef. â&#x20AC;&#x153;We donâ&#x20AC;&#x2122;t enter into these things lightly.â&#x20AC;?

The plant is located at 1-9-1-4-W2, across the road from a former Legacy, now Crescent Point battery.

Construction on the facility began June 2014. It became operational February 2015, according to Voss.

The project includes the initial plant itself, the eight kilometre sales pipeline and 35 kilometres of gas gathering

landowner, good road access and good relationships with the rural municipality were all considerations.

There were no existing gas plants in the area, but there were â&#x20AC;&#x153;tons of drilling locations.â&#x20AC;?

The full implementation of the Directive S-10 on gas conservation as of July 1, 2015 was another factor.

The first phase of the North Portal Gas Plant was 12 million standard cubic feet per day. They are already doubling that to 24.5 million standard cubic feet per day.

Legacy, which had been drilling along the border for the past several years, built an eight-inch pipeline connecting to the gas plant.

Construction of the plant peaked at over 100 people at times, with 50 to 70 workers being the average for much of the work.

In operation, four to five operators run the plant. That number may be bumped up to six or seven long-term.

Currently Vermillion ĆľĆ?Ć&#x;Ĺś sĹ˝Ć?Ć?Í&#x2022; Ç&#x20AC;Ĺ?Ä?Ä&#x17E;ͲĆ&#x2030;Ć&#x152;Ä&#x17E;Ć?Ĺ?Ä&#x161;Ä&#x17E;ĹśĆ&#x161; Ä&#x201A;ĹśÄ&#x161; Ä?Ĺ&#x161;Ĺ?Ä&#x17E;Ĩ Ĺ˝Ć&#x2030;Ä&#x17E;Ć&#x152;Ä&#x201A;Ć&#x;ĹśĹ? ŽĸÄ?Ä&#x17E;Ć&#x152; ŽĨ ^Ć&#x161;Ä&#x17E;Ä&#x17E;ĹŻ ZÄ&#x17E;Ä&#x17E;Ĩ contract-operates the facility. /ŜĨĆ&#x152;Ä&#x201A;Ć?Ć&#x161;Ć&#x152;ĆľÄ?Ć&#x161;ĆľĆ&#x152;Ä&#x17E; Ĺ˝Ć&#x152;Ć&#x2030;Í&#x2DC;Í&#x2022; Ć?Ä&#x201A;Ç&#x2021;Ć? Ĺ?Ć&#x152;Ä&#x17E;Ä?Ć&#x;Ç&#x20AC;Ä&#x17E; ^ͲϭϏ Ć&#x2030;ĹŻÄ&#x201A;Ç&#x2021;Ä&#x17E;Ä&#x161; Ä&#x201A; Ć&#x2030;Ä&#x201A;Ć&#x152;Ć&#x161; Ĺ?Ĺś Ć&#x161;Ĺ&#x161;Ä&#x17E; Ä?ŽŜĆ?Ć&#x161;Ć&#x152;ĆľÄ?Ͳ S-10 Ć&#x;ŽŜ ŽĨ Ć&#x161;Ĺ&#x161;Ĺ?Ć? Ĺ?Ä&#x201A;Ć? Ć&#x2030;ĹŻÄ&#x201A;ĹśĆ&#x161; ĹśÄ&#x17E;Ä&#x201A;Ć&#x152; EĹ˝Ć&#x152;Ć&#x161;Ĺ&#x161; WĹ˝Ć&#x152;Ć&#x161;Ä&#x201A;ĹŻÍ&#x2DC; Photo by Brian Zinchuk Are the S-10 gas conservation regulations behind this raised $35 million, for a to- plant? infrastructure.

One of Saskatchewanâ&#x20AC;&#x2122;s tal of $166 million. All that â&#x20AC;&#x153;Thatâ&#x20AC;&#x2122;s absolutely why,â&#x20AC;? capital management firms, investment has been private Voss said, but added that â&#x20AC;&#x153;It is PFM Capital, has made its money, a mix of retail and in- economic for the producers to largest placements to date stitutional investors. recover the gas and the liquids.

Asked why North Portal with Steel Reef, and one if its â&#x20AC;&#x153;It was certainly the impartners, Rob Duguid, sits on was chosen, he responded that petus.â&#x20AC;? area producers had done a lot the Steel Reef board.

There are lots of far-reachSteel Reef has had three of the front-end work already ing implications, he noted. rounds of investment. The and had been working on the One is Saskatchewan, which first, in March 2013, raised project since 2012. â&#x20AC;&#x153;We didnâ&#x20AC;&#x2122;t has become a net gas importer $66 million. The next, in pick the location,â&#x20AC;? he said. in recent years, can use more Being adjacent to an exist- of its own-source natural gas.

March 2014, raised $65 million. The third, this past April, ing oil battery, having a good ɸ Page A10

spill site Nexen Energy hosted a media tour on July 22 of ongoing cleanup efforts at the site of major pipeline leak of an estimated 5 million litres of bitumen, sand and wastewater emulsion.

The tour took place at the spill site south of the companyâ&#x20AC;&#x2122;s Long Lake bitumen facility.

The leak is attributed to a pipeline failure that occurred approximately 36 kilometres south east of Fort McMurray and covered over a 16,000 square metre area.

Nexen investigators found a small hole in the pipeline which Nexenâ&#x20AC;&#x2122;s automatic detection systems did not pick up despite the fact the pipeline was built in 2014.

The pipeline connects Nexenâ&#x20AC;&#x2122;s 9,000 barrel per day Kinosis oil sands project to Long Lake Ron Bailey, Nexenâ&#x20AC;&#x2122;s senior vice-president of Canadian operations, reported the company is investigating the system failure and apologized for the impact of the spill.

The Aberta Energy Regulator (AER) issued a cleanup order to Nexen on July 17 to contain the spill and protect wildlife and water resources and restore the site to its natural state.

The spill did not contaminate any water bodies said AER. One dead duck was later discovered on the western side of the spill site but Nexen believes the duck had been at the site before wildlife deterrents were put in place.

Nexen is a subsidiary of Chinaâ&#x20AC;&#x2122;s CNOOC Ltd. Briefs courtesy Nickleâ&#x20AC;&#x2122;s Daily Oil Bulletin

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PIPELINE NEWS August 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.

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S-10 is more than a Chevy pickup Chevrolet used to make a compact pickup known as the S-10. But that term has a whole new meaning in Saskatchewan.

The Saskatchewan Upstream Petroleum Industry Associated Gas Conservation Directive S-10 was brought into effect July 1, 2011. It provided a grace period for existing wells drilled prior to July 1, 2012.

That grace period ended July 1, 2015. If you have a well producing more than 900 cubic metres of gas per day, it should have its gas collected instead of flared, incinerated or vented.

From talking to various players in the business, we found that new gas plants under construction or plants being expanded are economic, but the S-10 directive played a big part.

The dollar figured involved is nothing to laugh at. At least a quarter billion dollars have been spent or will be spent on gas infrastructure in the southeast alone once all is said and done.

Saskatchewan, a net importer of natural gas for several years, has seen it gas production decline substantially from a high of approximately 330 billion cubic feet per year to just under 200 billion.

More tellingly, although we ran a headline a few months ago proclaiming â&#x20AC;&#x153;Saskatchewanâ&#x20AC;&#x2122;s natural gas drilling is all but dead,â&#x20AC;? Weâ&#x20AC;&#x2122;ve turned a corner now with production, if not drilling, and gas production has risen to about 210 billion cubic feet per year. That additional gas is not from new drilling, but collecting more associated gas. Saskatchewan now produced more associated gas, that is, gas that is produced alongside oil, that it does from straight gas production, sometimes called â&#x20AC;&#x153;non-associated gas.â&#x20AC;?

Youâ&#x20AC;&#x2122;re seeing a lot less flaring in southeast Saskatchewan now, especially compared to seven years

ago. Youâ&#x20AC;&#x2122;re also noticing a lot less sour gas odours wafting into your truck as you drive down the highway.

Collecting more associated gas has other benefits.

Taken directly from the S-10 document: â&#x20AC;&#x153;Flaring and venting of associated gas is known to emit air pollutants which may contribute to acid rain, smog and respiratory problems. Also, these emissions can be sources of harmful chemical contaminants such as volatile organic compounds, inhalable particulate matters and monocyclic and polycyclic aromatic hydrocarbons. These air pollutants, with the exception of carbon dioxide, can contribute to the degradation of regional air quality, acidify surface water and soil as well as potentially impact human health. By reducing flaring and venting of associated gas the publicâ&#x20AC;&#x2122;s health and quality of living is enhanced through improvements in air quality, protection of water resources and topsoil resources.â&#x20AC;?

Some people might think it means a lot more royalties to the provincial government. They would be wrong. The government likely collected more revenue from the sales tax, business income tax and personal income tax on workers from the construction of the new gas facilities than it will ever see in royalties. The 2015 provincial budget projected a paltry $19.1 million in royalties from all natural gas sources. This is a reflection on the low price of gas and lower production compared to several years ago.

One thing we did hear from almost every player is the need for more infrastructure, in particular, pipelines.

This especially true for gas collection. Without more pipe in the ground, S-10 cannot be fully implemented, we were told.

Most people may not have heard of it, but S-10 has had a substantial impact, and will have for years to come.

PIPELINE NEWS August 2015

From the Top of The Pile

A7

OPINION

By Brian Zinchuk

(TXDOL]DWLRQ SD\PHQWV VKRXOG ÁRZ WKURXJK SLSHOLQHV Premier Brad Wall hit the nail on the head going into the mid-July premier’s conference when he said, “Maybe we should send equalization payments through a pipeline to get one approved in Central Canada.”

Funny, I think we ran an editorial cartoon to that effect a while back.

That meeting concluded with some sort of national energy strategy, but whether it’s going to mean anything or not is another question.

Here’s an energy strategy for you: Canada needs more pipelines. They have been tied up in such red tape in recent years, you would think we forgot how to do it.

Consider this: if Western Canadian oil was reaching tidewater on both the West Coast and East Coast in significant volumes, maybe we’d be getting a better price for our oil. On July 17, WTI was trading for $50.92 per barrel, but Brent (ocean-borne oil) was getting $57.51 per barrel.

The Energy East pipeline is probably the most significant of them all. Not only is it the largest proposal in terms of length (4,600 kilometres), has the most already in the ground (3,000 kilometres), and largest capacity (1.1 million barrels per day), it has the most strategic impact. Turning open the valve on that pipeline would allow Eastern Canada to use Western Canadian oil, chasing out most, if not all imports.

That would make us truly energy independent.

Right now, much of Eastern Canada relies on foreign oil, while Western Canada sells its oil at a discount to a flooded U.S. market. But what if a war cuts off that

oil fuelling the East? Or an embargo? What then?

Our only alternative would be massive amounts of crude-by-rail shipments.

Most of Energy East is already in the ground, save the portion that will run through Quebec and New Brunswick, both have-not provinces. Ever notice that the have provinces these days produce oil and gas in substantial quantities, but provinces like Manitoba and Quebec, with their ample hydro power supplies, are have-nots? What’s the matter, cheap hydro not paying the bills?

Yet these provinces seem mighty righteous when talking about the environment. Flooding vast swaths of pristine territory is just fine, as long as it’s in the north where only First Nations people notice, apparently. But drilling for oil or gas, ooooo, that’s bad.

(A side note: Manitoba’s premier Greg Selinger seems to have, once again, forgotten he, too, has an oilpatch. “We needed a strategy to move Canada forward,” he told CBC Radio’s The House. “At the time, a lot of people said it was impossible. It’s not an easy issue for (oil-producing provinces), but they’re showing an interest. We have to encourage them to be part of the solution.”)

Quebec may very well have natural gas. Ditto for New Brunswick. But they don’t like fracking. So it’s okay for them to cash the equalization cheques provided by fracking, but not to allow that to happen in their jurisdictions.

There’s one more thing to consider. If Energy East was in operation already, the chances of crude oil being shipped by rail through Quebec would be next to nothing. Energy East, with its associated

Upland pipeline, would likely preclude all further crude-by-rail shipments to New Brunswick originating in Western Canada or North Dakota. If it had been operating two years ago, perhaps the Lac-Mégantic disaster might have never happened.

The answer is simple: our national energy strategy needs more pipelines. As a whole the nation will earn more for its oil, will become energy independent, and it will all be done in a much safer manner.

What more do you want?

Clarification: In a few pieces in recent months I have alluded to Crescent Point Energy Corp.’s share of Saskatchewan oil production as being close to one-third of Saskatchewan’s total oil production. In fact, that number is very close to one quarter, as Crescent Point has more American production than I had thought.

With the recent acquisition of Legacy Oil+Gas, Crescent Point produces around 130,000 barrels per day in Saskatchewan. The most recent number I have for total daily production in Saskatchewan is 525,000 barrels per day. Husky produces a little less than Crescent Point, but not much. The net result is that Crescent Point and Husky, combined, produce nearly one half of all Saskatchewan oil. The rest is produced by roughly 580 other companies. I apologize for the error.

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

Lee Side of Lloyd

By Geoff Lee The next time someone complains about an oil spill, bring up the impact of forest fires to make the point that fires due more harm to people, property and the environment than oil spills.

Both are bad and needed to be prevented from human causes, but given a choice for my own survival, I would pick an oil spill.

There is no Slick the Oil Spill, but there is a Smokey the Bear.

Spills that happen on open water can be contained if acted upon quickly with the most of the oil able to be contained or skimmed off since oil is generally less dense than water.

Marine life, mammals and birds are obviously impacted by oil spills that can also foul beaches but few if any people are harmed by them.

Yes 11 people were killed in the BP-leased drilling rig Deepwater Horizon explosion in 2010 but none from the spill itself.

BP reached a settlement in July with U.S. authorities to pay $18.7 billion in damages for the Gulf of Mexico spill.

By contrast, taxpayers, not companies are on the hook for the cost of human caused and nature caused forest fires.

The government of Saskatchewan exceeded its annual firefighting budget in June due to fires raging

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in the north.

That cost included sheltering more than 13,000 evacuees from affected communities by July 7 due to fire and thick smoke.

Smoke affected the air quality of a big chunk of the population and most of the province.

An oil spill in a river can threaten downstream drinking water or local fishing, but those threats tend to be short-lived and containable within the water body compared to wildfires whipped by wind.

When a forest burns the wood resource is lost for at least 60 years and the scorched earth is a visual eyesore until regrowth kicks in.

Fires can also burn through entire communities as one did in Slave Lake in 2011.

The amount of carbon dioxide emitted by a forest fires can be enormous. The smoke forces people to stay indoors for their own health.

People who drive vehicles fueled by gasoline made from oil that can spill are not asked to stay indoors instead of driving.

More of us should buy less polluting vehicles for our own good.

Somehow the media and the public views forest fires as a rite of nature despite the fact that many of them are caused by people.

Oil spills are almost always caused by employees or oil related companies that end up paying for cost of

clean-up.

If an oil spill results from a ruptured pipeline or a rail car it is easy to determine the location of the spill and the exact volume of the spill and the type of oil.

The flow of oil and that is spilled by a pipeline can be turned off by valves. When all the oil in a tanker is spilled or burned there is no more to spill or burn.

When it comes to forest fires there could be multiple fires all at once with wind and accessibility factoring into slower response times leading to ever larger fires.

Probably the most dangerous oil spills to respond to are ones from derailed trains, especially in built up urban areas.

The Lac-Mégantic rail disaster in July 2013 that killed 47 people is considered a transportation safety issue and a failure of the engineer to apply sufficient hand brakes.

It’s led to an overhaul of rail transportation safety and enforcement and ushered in safer tankers that are less prone to rupturing in a derailment.

In the total scheme of things forest fires have killed more people and destroyed more natural resources and property that every oil spill on record.

Both are bad for the environment and human health but arsonists don’t cause oil spills or explosions from spilled oil but they do set forest fires.

I’m just saying.

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

A8

PIPELINE NEWS August 2015

Reorganization within the Ministry of Economy H2S inspection sweep going on this summer Éş Page A3 P.N.: Should the industry expect a change in direction in either policy or administration?

MacKnight: Thatâ&#x20AC;&#x2122;s a tough one. We have to be responsive to circumstances on the ground.

I canâ&#x20AC;&#x2122;t really say yes or no. All I can say is that our business, weâ&#x20AC;&#x2122;re going to make sure weâ&#x20AC;&#x2122;re engaged in discussions on any changes of policy. Thatâ&#x20AC;&#x2122;s our modus operandi for years now. Weâ&#x20AC;&#x2122;ve developed programs for consultation, and that

model works.

Thatâ&#x20AC;&#x2122;s the model weâ&#x20AC;&#x2122;ll be pursuing.

P.N.: In regards to the levy, Crescent Point has grown to the point where theyâ&#x20AC;&#x2122;re producing a quarter of Saskatchewanâ&#x20AC;&#x2122;s oil, and Husky is pretty big as well. Between the two of them, you have two producers producing half of Saskatchewanâ&#x20AC;&#x2122;s oil, and 580 also-rans.

Is that going to have some sort of impact for the larger companies when they ask for things? Will they have a lot of influence, since theyâ&#x20AC;&#x2122;re paying the bill?

MacKnight: Thatâ&#x20AC;&#x2122;s an interesting question.

The answer is we apply the acts and regulations as they exist. We look at the facts as they are brought forward to us.

If the facts support the request, thatâ&#x20AC;&#x2122;s what we act on as a regulator.

The truth of the matter is, when you have companies with large volumes of production and lots of wells, they have a lot more issues we have to attend to. They have concerns. In the sense theyâ&#x20AC;&#x2122;re a major player, of course weâ&#x20AC;&#x2122;re going be listening to the things

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they have to say to us.

We are a sciencebased, fact- driven organization, and thatâ&#x20AC;&#x2122;s the way an oil and gas regulator has to work.

The industry has changed quite significantly over five and ten years. It goes without saying, Saskatchewan is changing. The current price environment is going to bring more changes. Overall, your observations are sound, the Saskatchewan oilpatch has changed.

But from a regulatory standpoint, we still have the same types of issues. We have to worry about the safety of folks in the industry and the public at large.

We have to worry about the environment, things like waste, such as the gas issue. And we have to worry about issues of fairness, because we have a lot of people operating in the patch.

Thatâ&#x20AC;&#x2122;s the bread and butter of the business of regulation. Thatâ&#x20AC;&#x2122;s what this division will do, and thatâ&#x20AC;&#x2122;s what weâ&#x20AC;&#x2122;re focused on.

P.N.: Where are things at on fugitive gas emissions and inspections? Is the ministry carrying out

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previously announced plans of focussing inspections on sour sites?

MacKnight: We have folks out, actually this week, and going out into the next few weeks. Weâ&#x20AC;&#x2122;re doing a sweep for high-risk locations, more particularly on the sour gas issue. The short answer is yes, weâ&#x20AC;&#x2122;re proceeding on that. Needless to say, thatâ&#x20AC;&#x2122;s an absolute priority, the number one safety issue, and weâ&#x20AC;&#x2122;ve got to get after it from an enforcement standpoint.

The follow-up to that, in some cases we might have to act quickly to get it under control. In others, itâ&#x20AC;&#x2122;s just an order issue where weâ&#x20AC;&#x2122;re providing operators with a notice period.

Brad Wagner: Our branch, Petroleum Development Branch, has been carrying out inspections of oil and gas facilities. Weâ&#x20AC;&#x2122;ve done two weeks so far in July. Weâ&#x20AC;&#x2122;re going to do a third week in July, and we plan to do more inspections in August. Weâ&#x20AC;&#x2122;ve focused our resources down in the southeast part of the province. Weâ&#x20AC;&#x2122;ve brought in staff to help us contribute to the investigation there.

I think as it stands right now weâ&#x20AC;&#x2122;ve inspected around 10,000 sites so far this summer. The inspections are focused not solely on the problem of sour gas, thatâ&#x20AC;&#x2122;s the pri-

mary focus, but theyâ&#x20AC;&#x2122;re comprehensive as well.

Any number of issues for compliance on site, whether its equipment spacing or whether the leases have adequate berms, proper signage â&#x20AC;&#x201C; all those things are being investigated.

Again, the focus is on sour gas. As we generate a list of noncompliance at various sites, we send correspondence to the oil and gas companies to have things corrected.

Thatâ&#x20AC;&#x2122;s probably it in a nutshell.

With respect to H2S issues, the investigations so far, weâ&#x20AC;&#x2122;ve found a number of sites where there are hydrogen sulphide odours.

Weâ&#x20AC;&#x2122;re treating those separately. Those issues we treat as a fairly serious issue because of course H2S is a poisonous gas. We know there have been problems in the southeast. Even in situations where thereâ&#x20AC;&#x2122;s just odours present and not a dangerous concentration of hydrogen sulphide, weâ&#x20AC;&#x2122;re treating it fairly serious because itâ&#x20AC;&#x2122;s indicative of a problem that may get worse, with dangerous consequences for life and health.

Our inspections in August are going to focus more tightly on problem areas that have been problems in the past â&#x20AC;&#x201C; problem areas of the southeast, some of the larger facilities.

This interview has been condensed for length.

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PIPELINE NEWS August 2015

A9

Once an exporter, Saskatchewan is now an importer of natural gas

Dennis Terry

Éş Page A4 P.N.: How much natural gas is expected to be collected in Saskatchewan as a result? Where is this additional gas? Do you have the infrastructure to collect it?

Terry: The 2014 Flare Gas Report provided by the Ministry of the Economy indicates that over 1.3 million thousand cubic metres of natural gas was reported as flared or vented in 2014, with actual volumes likely higher.

Flared and vented gas is directly associated with oil production in the province, with the

majority (over 50 per cent) currently being produced in southeast Saskatchewan. Other areas of significant activity include Shaunavon, Kindersley and Lloydminster.

TransGas is currently engaged with its customer base to ensure that the necessary infrastructure is in place to meet the growing demand for the capture and transportation of flared/vented gas within the province. In the high-volume southeast area, TransGas is beginning work on a two-year capital expansion project that will nearly double the system capacity in

that area. In addition, Bayhurst Gas Limited (another SaskEnergy subsidiary), through its Bayhurst Energy Services Corporation, is investing in increasing compression capabilities at the Coleville Gas Plant to provide additional gas processing capacity for the area.

P.N.: Will this additional associated gas collection offset the decline in normal natural gas production in this province, which has flat-lined in recent years (last year had around 10 natural gas targeted wells drilled, down from over 2000 a decade or so ago)?

Terry: Based on available information for the past two years of actual natural gas production in Saskatchewan, the increase in associated gas have been offsetting the decline in traditional natural gas production, with the net production level remaining relatively constant.

P.N.: With the decline of organic gas production in the province, how are things changing for TransGas? Do we need more gas-carrying pipelines from Alberta, or is the current network sufficient?

Terry: Over the last

few years, TransGas has transitioned from being a net exporter of natural gas to a net importer, with the corporation now importing more than 50 per cent of its natural gas supply from Alberta.

TransGas has been working to expand its infrastructure at key points on its system in order to address this new demand for additional Alberta supply. In 2014, TransGas completed the Bayhurstto-Rosetown pipeline project, the largest transmission system capital expenditure of

2014. The 140-kilometre transmission pipeline expansion added approximately 150 TJ per day of transport capacity to the northern part of the transmission system, allowing additional supply to be moved to areas of rapid growth such as North Battleford and Saskatoon. TransGas has also made significant investment in new mobile compression and other facilities designed to increase supply capacity, flexibility and reliability in order to meet the changing energy needs of the province.

P.N.: Is there any-

thing you would like to add?

Terry: SaskEnergy and TransGas are committed to creating a competitive advantage for Saskatchewan through safe, innovative energy solutions, while maintaining safe, reliable service to our more than 380,000 customers across Saskatchewan.

Looking for opportunities, like the S-10 directive, to collaborate with the Government of Saskatchewan and private industry on efforts to conserve natural gas and reduce emissions is vital to that commitment.

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PIPELINE NEWS August 2015

H26 LQMHFWLRQ ZHOO D ÀUVW LQ 6DVNDWFKHZDQ RLO DQG JDV LQGXVWU\ could be a possibility in the future. “We have discussions with them fairly regularly,” Voss said. “We don’t own the production ourselves.”

Every bit of gas coming into the plant is solution gas, produced as a by-product of oil extraction.

Alameda plant in the works On the heels of building the second phase of the North Portal plant, a second gas plant is also in the works. The proposed facility would be a few kilometres northwest of Alameda, placing it ŽŶƐƚƌƵĐƟŽŶ ŽĨ ƚŚĞ ƐĞĐŽŶĚ ƉŚĂƐĞ ŽĨ ƚŚĞ ^ƚĞĞů ZĞĞĨ EŽƌƚŚ WŽƌƚĂů ŐĂƐ ƉůĂŶƚ ŝƐ ƵŶĚĞƌǁĂLJ͘ between the existing, long-established SteeldŚŝƐ ƉŝƉĞ ƌĂĐŬ ŝƐ ĞƐƐĞŶƟĂůůLJ Ă ŵŝƌƌŽƌ ŝŵĂŐĞ ŽĨ ƚŚĞ ĮƌƐƚ ƉŚĂƐĞ͘ man and Nottingham gas plants. stated in times of low Those NGLs, ɺ Page A5 “We’re at the point principally propane, “That being said, it’s natural gas prices. where we’re finishing “When things come butane and condensate, hard,” Voss said, pointscoping. We’re picking around, there’s lots of are separated from the ing out there is limited the location,” he said. natural gas into a single value in the liquids,” infrastructure for gas The second plant Voss said. phase. The plant does handling in the provwould be slightly The gas coming not have fractionation ince. smaller than the first facilities right now, but into the plant proFor larger producphase of the North Porduces about 80 barrels that could be something tal plant. It will be sized ers, that’s not as much for the future. of NGLs per million of an issue as it is for for committed volumes. standard cubic feet. That While this plant has “We don’t build on smaller ones. They need can mean up to 2,000 not yet shipped NGLs help, he said. spec,” Voss said, adding barrel per day producvia the nearby Ceres One of the imthat expansion is always tion once the expansion Northgate Logistics portant factors is the in their minds. is complete.

Hub, which is on the collection of natural Planning is under“This is pretty BNSF railway into gas liquids, the value of way for an open house the United States, that which cannot be under- liquids-rich,” he said. soon.

• Parts • Leasing

Voss said they are hoping to have the proposed Alameda plant in operation before the end of the summer of 2016.

H2S injection One of the properties of the gas the North Portal facility will handle is a higher H2S content. The sour gas content is beyond reasonable volumes for flaring or incineration.

“It’s just too much.”

As a result Steel Reef has pursued a different strategy, a first for Saskatchewan in the oil and gas industry.

They will be injecting H2S into a deep saline aquifer, very similar to

the Aquistore project.

The target formation is the Deadwood, right above the PreCambrian basement. The well, recently drilled and in the process of completion as of early July, is the third-deepest in Saskatchewan after the Aquistore observation and injection wells. Steel Reef ’s injection well is 3250 metres deep “It will be the first in Saskatchewan for oil and gas,” Voss said.

The proposed Alameda plant will have much less H2S, and therefore it can use flaring or incineration to deal with it.

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PIPELINE NEWS August 2015

KŶ :ƵůLJ ϭϬ ^ƚĂŵƉĞĚĞ ƌŝůůŝŶŐ ĂŶĚ tĞĂƚŚĞƌďLJ KŝůĮĞůĚ ^ĞƌǀŝĐĞƐ ďĂƌďĞĐƵĞĚ ƵƉ ƐƚĞĂŬƐ ĨŽƌ ƌĞƐŝĚĞŶƚƐ ŽĨ ƚŚĞ ^ƚ͘ :ŽƐĞƉŚ͛Ɛ ^ƉĞĐŝĂů ĂƌĞ ,ŽŵĞ͕ ƚŚĞ ůŽŶŐͲƚĞƌŵ ĐĂƌĞ ĨĂĐŝůŝƚLJ ĂƩĂĐŚĞĚ ƚŽ ƐƚĞǀĂŶ͛Ɛ ^ƚ͘ :ŽͲ ƐĞƉŚ͛Ɛ ,ŽƐƉŝƚĂů͘ &ƌŽŵ ůĞŌ͕ ŝůů ĞǀŝŶƐ͕ ^ƚĂŵƉĞĚĞ ƌŝůůŝŶŐ͖ ŚƌŝƐƟĞ tŝŐůĞLJ͕ tĞĂƚŚĞƌďLJ KŝůĮĞůĚ ^ĞƌǀŝĐĞƐ >ƚĚ͖͘ ƌŝŶ ĂŶďƵƌLJ͕ ůŽŶŐͲƚĞƌŵ ĐĂƌĞ ŵĂŶĂŐĞƌ͖ ĞĂŶ tŝŐůĞLJ͕ tĞĂƚŚĞƌďLJ͖ :ĂĐŬŝĞ tŚŝƚĞ͕ ^ƚĂŵƉĞĚĞ͖ ĂǀĞ ^ŚĞǁĐŚƵŬ͕ ^ƚĂŵƉĞĚĞ͖ 'ĂƌŝƩ DŝůůŝŽŶƐ͕ ^ƚĂŵƉĞĚĞ ;ĂůƐŽ ƉŝĐͲ ƚƵƌĞĚ ĮŶŝƐŚŝŶŐ ƵƉ ƚŚĞ ƐƚĞĂŬƐ ŽŶ ƚŚĞ YͿ͘ ^ĞĂƚĞĚ ŝƐ <ĞŶ :ŽŚŶƐŽŶ͕ Ă ƌĞƐŝĚĞŶƚ ŽĨ ƚŚĞ ůŽŶŐͲƚĞƌŵ ĐĂƌĞ ĨĂĐŝůŝƚLJ͘

&ƌŽŵ ůĞŌ͕ ŝůů ĞǀŝŶƐ͕ ŽĨ ^ƚĂŵƉĞĚĞ ƌŝůůŝŶŐ͕ ǀŝƐŝƚƐ ǁŝƚŚ DLJƌƚůĞ KŶĞƐnjƵŬ ĂŶĚ dŽŵ EŽďůĞ͘ EŽďůĞ ŚĂĚ Ă ƚƌƵĐŬŝŶŐ ĐŽŵƉĂŶLJ ĨŽƌ ϱϬ LJĞĂƌƐ ŝŶ ƚŚĞ ŽŝůĮĞůĚ ŬŶŽǁŶ ĂƐ EŽďĞů dƌƵĐŬŝŶŐ͘ Photos by Brian Zinchuk

THE COMMUNITY HAS NEEDS

Estevan – “You’re looking for good news stories?” Bill Devins said, peering over his glasses in his own particular way. “I’ve got a good news story for you.”

Stampede Drilling of Estevan would be volunteering at St. Joseph’s Special Care Home, the longterm care portion of Estevan’s St. Joseph’s Hospital, barbecuing a lovely lunch for the residents.

And indeed, they did just that on July 10.

“Even in tough times, we give back to the community,” said Jackie White. Devins and White look after operations and safety with the private drilling contractor.

“We like to donate to kids and older people,”

A11

she said, the smell of freshly cooked mushrooms wafting nearby, as steaks sizzled on the barbecue.

Indeed, the list of the company’s contributions from 2014 and 2015 is long – with 14 separate contributions. It includes annual contributions to the Carnduff daycare, sponsoring the Estevan Bantam AA Bruins hockey team, sponsoring numerous golf tournaments, cleaning up garbage along the highways in the spring and bringing a loader and operator in to clean up the local ag society grounds.

They’ve supported the Glen Ewen Trailblazers 4 H club, and bought a calf from the Kennedy 4-H club.

“Yes, day rates are down. Yes, activity is down.

But the community still has needs,” White said,

echoing similar statements by Devins.

Stampede runs a very local operation. Supplies are purchased locally if possible. Wages stay in the area. Their rigs were built locally. “We do believe in local,” she said.

This was their second year coming to volunteer at the long-term care home, working alongside Weatherby Oilfield Services, a local, growing trucking company.

“You don’t have to give money. You can give time,” White said.

The company was able to report all three of its rigs were working as of June, yet another piece of good news.

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PIPELINE NEWS August 2015

If the price of gas was higher, companies would be more inclined to collect it withŽƾĆ&#x161; Ĺ?Ĺ˝Ç&#x20AC;Ä&#x17E;Ć&#x152;ŜžÄ&#x17E;ĹśĆ&#x161; Ĺ?ĹśĆ&#x161;Ä&#x17E;Ć&#x152;Ç&#x20AC;Ä&#x17E;ĹśĆ&#x;ŽŜÍ&#x2022; Ä&#x201A;Ä?Ä?Ĺ˝Ć&#x152;Ä&#x161;Ĺ?ĹśĹ? Ć&#x161;Ĺ˝ Ä&#x161; Ä&#x201A;ĹśÄ?Ć?ŽŏÍ&#x2DC; dĹ&#x161;Ĺ?Ć? Ĺ?Ć? Ć&#x161;Ĺ&#x161;Ä&#x17E; ĹśÄ&#x17E;Ç Ć&#x152;Ä&#x17E;Ć?Ä?Ä&#x17E;ĹśĆ&#x161; WĹ˝Ĺ?ĹśĆ&#x161; &ĹŻÄ&#x201A;Ć&#x161; >Ä&#x201A;ĹŹÄ&#x17E; Ĺ?Ä&#x201A;Ć? Ć&#x2030;ĹŻÄ&#x201A;ĹśĆ&#x161;Í&#x2DC; Photo by Brian Zinchuk

More gas collection infrastructure needed: Dancsok Â&#x201E; By Brian Zinchuk Regina â&#x20AC;&#x201C; Ed Dancsok has a new job within the Ministry of Economy.

Previously assistant deputy minister for petroleum and natural gas, heâ&#x20AC;&#x2122;s still in an ADM job, but with a different role. â&#x20AC;&#x153;The model has changed here at the ministry, so to speak. Theyâ&#x20AC;&#x2122;ve split our regulatory role and our development role into two groups.â&#x20AC;?

Doug McKnight has taken over the regulatory side of things. â&#x20AC;&#x153;My role here is as chief strategic lead, making sure investment continues in Saskatchewan and that weâ&#x20AC;&#x2122;re building the best business climate that we can to make that happen. Itâ&#x20AC;&#x2122;s tough for me to do if Iâ&#x20AC;&#x2122;m still a regulator.â&#x20AC;? â&#x20AC;&#x153;Iâ&#x20AC;&#x2122;m an ADM, but itâ&#x20AC;&#x2122;s more of a matrix-type situation. I donâ&#x20AC;&#x2122;t have staff that report to me, but I can go across divisions, wherever I need, to pick out the key people I need to make things happen. If we have an issue with SaskPower or SaskEnergy, or an RM, or a company thatâ&#x20AC;&#x2122;s come to the province and is doing a project and needs assistance and guidance in getting things done, Iâ&#x20AC;&#x2122;m here to get things done.â&#x20AC;?

One issue that has come up with Pipeline Newsâ&#x20AC;&#x2122; discussions with industry

players is the need for more natural gas infrastructure, particularly now with the full implementation of the provinceâ&#x20AC;&#x2122;s S-10 directives on the conservation of natural gas and reduction of flaring.

With regards to the development of natural gas infrastructure, Dancsok said, â&#x20AC;&#x153;The need for more infrastructure to support this is very real. The goals of S-10 cannot be achieved until we get more infrastructure put in place. â&#x20AC;&#x153;I think with the announced gas plant expansions, we likely have enough gas plant capacity to take all the gas, but we have to get it there. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s an infrastructure deficit; I guess you could call it.â&#x20AC;?

The deficit is on the gas collection side, as opposed to transmission, according to Dancsok. â&#x20AC;&#x153;Thereâ&#x20AC;&#x2122;s a lot of work we need to do with SaskEnergy and the producers in identifying the areas where it makes sense to get infrastructure built. That certainly now is part of my job.â&#x20AC;?

Thereâ&#x20AC;&#x2122;s an opportunity for SaskEnergy to build collection systems, he explained. ɸ Page A13

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PIPELINE NEWS August 2015 Éş Page A12 In 2003 Saskatchewan had 2,318 natural gas wells drilled, a peak for natural gas drilling. By 2007, before prices declined dramatically for gas, we drilled 1,154 wells. In 2014, that number was about 10, according to information the ministry provided Pipeline News in May this year. Targetted natural gas drilling occurred on the western side of the province, whereas associated gas; natural gas produced as part of oil production; has risen a great deal in the east. Saskatchewan is now a net gas importer.

Will new volumes in the east make up for the decline of production in the west?

Dancsok replied, â&#x20AC;&#x153;We have seen, with the expansion of the oilfields, a lot of associated gas.

Associated gas now out-produced non-associated

gas, to the extent where it has reversed the decline in the overall provincial natural gas product. â&#x20AC;&#x153;That is certainly a bright spot. â&#x20AC;&#x153;We peaked in natural gas production about 2006. Will we get back to that point? I donâ&#x20AC;&#x2122;t know.

But we have reversed that trend, over the past couple years. If we can full invoke S-10, that will add to the mix. But to get back to those peak days, it might be a bit of a stretch.â&#x20AC;?

Due to natural decline curves, dry natural gas wells for non-associated gas need to be supplemented with new drilling to maintain production.

As drilling has declined to next to nothing, natural declines are taking its course.

In 2006 Saskatchewan peaked at approximately 330 billion cubic feet per year. Weâ&#x20AC;&#x2122;re now just under 210 to 220 billion cubic feet per year, having just turned that decline around. Non-associated gas continues to decline, but associated gas has turned around the whole picture and gas production overall is on the rise. Production had bottomed out at just under 200 billion cubic feet per year.

The Viking play near Kindersley has a â&#x20AC;&#x153;good portion of associated gas, and a growing amount in the southeast,â&#x20AC;? Dancsok said.

Crescent Point completed an expansion in 2014 of its Leitchville plant, near Shaunavon. Teine Energy also had an upgrade project for Elrose.

The amount of investment into natural gas collection going on in Saskatchewan is currently in excess of hundreds of millions of dollars. Does Dancsok think this would have occurred without the government bringing in gas conservation regu-

A13

lations? â&#x20AC;&#x153;Thatâ&#x20AC;&#x2122;s a good question. I think a certain amount of regulatory oversight does drive investment. Prior to things like S-10, and some of the other initiatives weâ&#x20AC;&#x2122;ve been doing, companies were spending their compliance dollars elsewhere. â&#x20AC;&#x153;By us flexing our regulatory muscles, weâ&#x20AC;&#x2122;re making some of those compliance investment dollars happen on this side of the border now.â&#x20AC;?

Dancsok emphasized that S-10 was not only about the environmental benefits, but also the resource conservation benefits and the economic benefit. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s generating a minor influx of investment in Saskatchewan by the building of this infrastructure.

Every incremental build of infrastructure improves the economics for the rest of the system,â&#x20AC;? Dancsok said.

Capturing more gas means more royalties, but the amount is a proverbial drop in the bucket.

The total amount of gas royalties for the entire province was projected to be $19.1 million in the 2015 provincial budget. Thus, the increased royalties collected from the new gas plants will be minimal, at best.

Dancsok noted that the royalty rate on associated gas is lower than on non-associated gas. â&#x20AC;&#x153;If gas (prices) were in their heyday, we wouldnâ&#x20AC;&#x2122;t be talking about this at all. it would be looked after. Thatâ&#x20AC;&#x2122;s what weâ&#x20AC;&#x2122;ve got to try to do is make sure it is economic for the industry. If it becomes economic, we donâ&#x20AC;&#x2122;t have to bring down hammers anymore, the compliance looks after itself.â&#x20AC;?

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Ed Dancsokâ&#x20AC;&#x2122;s role within the Ministry of the Economy has Ä?Ĺ&#x161;Ä&#x201A;ĹśĹ?Ä&#x17E;Ä&#x161;Í&#x2DC; /ĹśĆ?Ć&#x161;Ä&#x17E;Ä&#x201A;Ä&#x161; ŽĨ ůŽŽŏĹ?ĹśĹ? Ä&#x201A;Ĺ&#x152;Ä&#x17E;Ć&#x152; Ć&#x161;Ĺ&#x161;Ä&#x17E; Ć&#x152;Ä&#x17E;Ĺ?ƾůÄ&#x201A;Ć&#x161;Ĺ˝Ć&#x152;Ç&#x2021; Ć?Ĺ?Ä&#x161;Ä&#x17E;Í&#x2022; Ĺ&#x161;Ĺ?Ć? ĹŠĹ˝Ä? Ĺ?Ć? ĹśĹ˝Ç Ć&#x161;Ĺ˝ ůŽŽŏ Ä&#x201A;Ć&#x161; Ć&#x2030;Ć&#x152;ŽžŽĆ&#x;ĹśĹ? Ĺ?ĹśÇ&#x20AC;Ä&#x17E;Ć?Ć&#x161;ĹľÄ&#x17E;ĹśĆ&#x161;Í&#x2DC; File photo

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PIPELINE NEWS August 2015

Flat Lake gas plant under construction

By Brian Zinchuk Oungre – Due south of Oungre, just north of the U.S. border, is a centrepiece for Crescent Point Energy Corp.’s emerging Flat Lake play. When the company developed its prolific Viewfield play near Stoughton, all gas collection in the area was consolidated into one gas plant, which has been repeatedly expanded over the years. Now, with the Flat Lake Torquay play maturing, it was time to develop a similar gas plant to service that area.

The plant also comes at a time when Saskatchewan’s natural gas conservation measures, a directive known as S-10, came into full play on July 1, 2015.

Dave Foat, gas plant construction supervisor, and Duane Martens, senior production foreman, took Pipeline News on a tour of the plant on July 16 as construction progresses. Most of the primary components are now in place, and the pipe rack connecting them being installed.

The gas plant is planned to be in operation in early November.

“We’ll be a month of commissioning before startup,” Foat said.

Martens said the gas plant will initially serve two nearby batteries – one a stone’s throw to the north, and another 12 kilometres east.

At the northeast corner of the facility is the header into the plant. It includes a 10-inch inlet pipeline. Leaving the plant is an eight-inch sales line which goes to Viewfield area, southwest of Stoughton. There it enters the TransGas system, and will be processed by the new Pembina Saskatchewan Ethane Extraction Plant (SEEP) which will be coming online soon.

The header also includes a four-inch supply line

to power compressors in the field. The header has room for expansion as well.

Disposal water goes to the nearby Hoffer battery. Eventually water collected at the gas plant will be used for injection in a waterflood scheme if the area is developed as a waterflood.

From the header the incoming gas goes into an inlet separator, separating it into three phases- gas, water and liquid hydrocarbons. That last phase is essentially condensate.

The same building is used for metering outgoing gas on the sales line.

Gas coming into the plant is in the range of 100 PSI. However, that’s not enough for process systems, so it will proceed over to a compressor.

That compressor’s first two stages (of four) bring the gas up to 400 PSI. There are two compressors.

“Our Plant 4 at Viewfield is kind of a twin,” Martens said.

Foat added, “It’s a mirror image.”

After compression to 400 PSI, the gas goes into the condensate stabilizer building, to heat up the condensate phase.

The liquid portion from the inlet separator is also pumped to the stabilizer, where it’s heated up to drive off the H2S “We’re trying to drive out the sour phase from the fluids. We’ll recompress and sent it through the amine unit,” he said.

Next is the amine building. It contains an amine contactor, an amine regenerator and auxiliary amine cooler. Amines are derivatives of ammonia.

“The amine is an absorber,” said Foat. It collects H2S, SO2, and some CO2.

A similar amine system, on a much grander

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scale is used to collect SO2 and CO2 at the Boundary Dam Integrated Carbon Capture Project.

All these buildings are on the north end of the facility. From there, the pipe rack heads south for the other processes.

In the northwest corner is the incinerator and emergency flare stack. The flare stack will operated with a pilot light going all the time. The incinerator is used to dispose of sour hydrogen sulphide, or ɸ Page A15 H2S.

dŚĞ ůŽǁ ƚĞŵƉ ƐĞƉĂƌĂƚŽƌ͕ ƐƟůů ƐƵƌƌŽƵŶĚĞĚ ďLJ ƐĐĂīŽůĚŝŶŐ͕ ǁŝůů ƌĞĐŽǀĞƌ ĞƚŚĂŶĞ͕ ƉƌŽƉĂŶĞ ĂŶĚ ďƵƚĂŶĞ ĂƐ ŽŶĞ ůŝƋƵŝĚ͕ ƵŶĚĞƌ ƉƌĞƐƐƵƌĞ͕ ĂŶĚ ĐŽůĚ͘ dŚĞ ƌĞŵĂŝŶŝŶŐ ŶĂƚƵƌĂů ŐĂƐ͕ ŶŽǁ ƉƌŝŵĂƌŝůLJ ŵĞƚŚĂŶĞ ĂŶĚ ĞƚŚĂŶĞ͕ ůĞĂǀĞƐ ƚŚŝƐ ƉĂƌƚ ŽĨ ƚŚĞ ƉůĂŶƚ ĂŶĚ ŝƐ ƐĞŶƚ ƚŽ ƚŚĞ ĐŽŵƉƌĞƐƐŽƌ ƚŽ ďĞ ƌĞĐŽŵƉƌĞƐƐĞĚ ĂŶĚ ƐĞŶƚ ĚŽǁŶ ƚŚĞ ƐĂůĞƐ ƉŝƉĞůŝŶĞ͘

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PIPELINE NEWS August 2015

A15

ɺ Page A14 Leaving the amine building at the north end of the facility, the gas is now “sweet,” in that it is devoid of sour H2S. “It is sweet, but it is still ‘wet,’ with some entrained water and hydrocarbons in it,” Foat said.

Next is the refrigeration plant, where there are two 800 horsepower refrigeration units.

“We use propane as the refrigerant instead of 134A. We have it. We produce it, and it’s an efficient refrigerant.

“We’ve got to knock out any entrained water. It helps precipitate the propane and butane through initial compression, and then we chill it.”

The gas is chilled to -21 C. This would characterize the plant as a “shallow cut” plant. A “deep cut” plant gets much colder, and extracts ethane that a shallow cut plant cannot.

The low temperature separator recovers the propane, butane and some ethane as one flued, under pressure, and cold.

The natural gas, which is now mostly methane but with a sizeable ethane component, leaves the refrigeration unit for additional compression to approximately 1,000 PSI and then transmission down the sales line out of the facility, headed to the TransGas system.

The small amount of ethane that is captured at Flat Lake goes back into the sales gas. It will be captured, along with the rest of the ethane, at the SEEP facility.

While the refrigeration unit’s purpose is cooling, you don’t want things to get too cold and freeze up. Thus there is a glycol system which is similar in concept to the antifreeze used in your vehicle.

Glycol mixes with the gas stream to keep it from freezing. The glycol goes back to the dehy unit for regeneration.

Across the pipe rack is the fractionation system, which is notable for its three aluminum-clad towers.

Foat said, “Fractionation is a system of distilling

These storage bullets will be used to store natural gas liquids like propane and butane. There is room on the site to ĚŽƵďůĞ ƚŚĞ ŶƵŵďĞƌ ŽĨ ďƵůůĞƚƐ͘ ǀĞƌƟĐĂů ƚĂŶŬ ŝƐ ƵƐĞĚ ƚŽ ƐƚŽƌĞ ĐŽŶĚĞŶƐĂƚĞ͘

and cooling. If your granddaddy was a moonshiner, he’d understand.”

“The first component we want to take out is ethane. We can drive it off here, but we can’t liquefy it here. That requires a cryogenic plant,” he said.

Pointing to the first, and widest, tower, he said, “We feed the liquid into this tower. It’s liquid at the top. It will bubble down through a series of bubble caps in the tower.”

The first tower is the de-ethanizer. The second is the de-propanizer. The third is the de-butanizer.

Liquid comes to the bottom of the tower through the reboiler and back into the tower. Hot oil heat that product to keep the bottom of it still hot, and drive ethane out of the top. The other towers work in a similar process.

There is a pressure drop between the towers, he noted.

Each of the individual gases are condensed separately and put into storage “bullets,” large, horizontal pressurized storage tanks, for sale. Those bul-

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Follow the ethane molecule Ethane within the gas produced in the Flat Lake area, around Oungre, can take an interesting journey. The associated gas originates from wells in the area and is collected at two nearby batteries. It is then processed at the Flat Lake gas plant, where propane, butane and condensate (as well as water) are removed. However, since this is a “shallow cut” plant, the gas, which contains 17 per cent ethane, still has a substantial ethane component.

The sales gas, still containing the ethane, will be shipped northeast to the TransGas distribution system near Viewfield via an 8-inch sales line. All gas from Viewfield, as well that from Flat Lake, will be processed by the new Saskatchewan Ethane Extraction Plant (SEEP) still under construction.

The SEEP plant is located where Crescent Point’s gas from Viewfield ties into the TransGas system.

SEEP is a straddle plant on the TransGas system. This “deep cut” plant is capable of removing the ethane, not just from Flat Lake, but all the other gas collected on that pipeline. This includes gas originating at the Crescent Point Viewfield gas plant.

The collected ethane is then pipelined to Beaubier, Sask., where it joins the Vantage Pipeline. This Vantage Pipeline lateral is in a common ditch with the sales line from Flat Lake for a large portion of its length. Thus ethane within the Flat Lake-collected gas goes in both directions in the same ditch – first the deep cut plant, and then to the Vantage pipeline.

The Vantage Pipeline, owned and operated by Pembina Energy, runs from Tioga, N.D. to Princess, Alta. In Alberta the ethane is used by petrochemical industry, and could potentially end up in the plastics you use every day.

lets are on the southwest corner of the plant. There’s a truck loading facility at the southeast corner, near the gate, for semis to pick up the collected propane and butane. A condensate tank, surrounded by secondary containment, sits beside the storage bullets.

There’s one large boiler on site that provides heat for the various processes.

Throughout the facility there’s room allotted for future expansion without having to expand the footprint of the plant. For instance, there’s room for additional compressors near the existing compressors, and more storage bullets near the existing ones. In total, the gas plant can have its capacity doubled within that footprint.

The final buildings on the south end of the plant are the electrical buildings, containing numerous variable frequency drives. A standby generator is in place for heat, lights and flare operation.

There will be a minimum of five operators, with two crews of two. Often a mechanic will rotate in, Martens said.

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A16

PIPELINE NEWS August 2015

Pembina’s straddle plant will be operational soon :ĂƌĞƚ ^ƉƌŽƩ͕ ŽƌŝŐŝŶĂůůLJ ĨƌŽŵ sŝƌĚĞŶ͕ DĂŶ͕͘ ŝƐ ǀŝĐĞͲ ƉƌĞƐŝĚĞŶƚ ŽĨ WĞŵďŝŶĂ͛Ɛ ŐĂƐ ƐĞƌǀŝĐĞƐ ďƵƐŝŶĞƐƐ ƵŶŝƚ͘ WŚŽƚŽ ƐƵďŵŝƩĞĚ

By Brian Zinchuk Calgary – Last year Pembina Pipeline Corporation bought the Vantage Pipeline and an associated project from Mistral Energy. The Vantage Pipeline is an ethane line which runs from Tioga, N.D. to Princess, Alta., where it feeds ethane into the Alberta petrochemical industry. The pipeline crosses the Saskatchewan/North Dakota border near Beaubier.

Not far from that location a lateral pipeline has been built to the Viewfield area, southwest of Stoughton, where

Crescent Point Energy Corp has its primary gas plant for the Bakken.

On July 16, Pipeline News spoke to Jaret Sprott, vice-president of Pembina’s gas services business unit by phone from Calgary.

Pipeline News: Can you explain in broad strokes what SEEP is, and where it is?

Jaret Sprott: Saskatchewan Ethane Extraction Plant or SEEP for short, is a Deep Cut process that removes the majority of the lighter ends from a gas stream. When gas leaves a processing plant such as (Crescent

Point’s) Flat Lake, that’s considered a shallow cut, or -25 Celsius type plant.

It essentially gets the gas to spec quality, cleaning it up, taking out the water and heavier ends.

What SEEP is doing is essentially taking the gas through a process that drops the temperature to roughly -100C, removing the very light ends; C2, C3, C4; ethane, propane and butane. One of the unique things with the SEEP plant is it has a fractionator on the back end of the plant, which allows the plant to sell spec product.

C2 is transported by the Vantage Pipeline to AB and consumed by the petro-chemical industry, and the C3 and C4 will be sold locally into the Saskatchewan market.

The gas, once it has gone through the deep cut process, is comprised of mainly methane (C1), very similar to what would show up at your house.

P.N.: What is a straddle plant, and why was one built here? What is the difference between this and a conventional gas plant?

Sprott: In the Bakken, these are prolific oil wells with rich solution gas. That solution gas has so many heavy ends, it has to go through what some might call a “dew point plant,” where they take out the condensates and the heavier ends.

Then you can go to a colder plant, such as -25 Celsius, and you drop out your propanes and the majority of your butanes.

A straddle plant, we also refer to it as a “deep cut plant,” takes a deeper cut, going colder, and basically removing a large majority of the C2, all the C3 and definitely all the C4. This process is simply converting the molecules from the gas phase to the liquid phase due to having more value in the liquid phase as individual components.

The reason it was put here was gas that would typically be sold into a TransGas or TransCanada pipeline still has some value there. That’s what we’re doing is extracting that value for our customer.

P.N. At Flat Lake, they have about 17 per cent ethane, which they can’t extract at their plant, but that’s something you can get. Is that a typical amount for the gas coming into your plant? What would the cut be for ethane?

Sprott: That would be typical for the plant, for the type of gas (coming in).

P.N.: Straddle plants are much less common than a conventional plant?

Sprott: That’s true. Your conventional plants are designed to make your gas spec quality so you can sell it into major pipeline transmission systems like TransCanada and or TransGas for example in Saskatchewan. A deep-cut plant, or a straddle plant, is to extract those incremental liquids out of that gas stream. ɸ Page A17

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PIPELINE NEWS August 2015 Éş Page A16 P.N.: Is ethane worth a fraction more or multiple times more what spec gas is in a pipeline?

Sprott: I canâ&#x20AC;&#x2122;t quote the exact percentage, but it would be worth more, depending on what gas is trading at at the time. In Alberta, ethane is a commodity that is primarily consumed by the petro-chemical business. Thereâ&#x20AC;&#x2122;s not actually a market for ethane.

Propane, say, trades at a percentage of WTI. Ethane is a set price, by the purchaser.

P.N.: What sort of volumes will this plant be dealing with?

Sprott: SEEP can take 60 million cubic feet per day of gas. From that 60 million feet per day, with the type of gas we anticipate coming through the plant, we expect to be able to do about 4,500 barrels per day of C2 spec product.

That is what will be sold directly onto the Vantage system.

P.N.: This extraction plant is integral with the Vantage Pipeline, which transports ethane from Tioga, N.D. to Princess, Alta.

How does Saskatchewan-sourced ethane play into this?

Sprott: The Alberta ethane market, when Pembina acquired the Vantage pipeline system in Q4 of 2014, has a need for the petrochemical business to acquire more ethane.

The Alberta market was unable to satisfy that demand. Thatâ&#x20AC;&#x2122;s when the demand drove into Saskatchewan to acquire that ethane and ship it back into Alberta.

P.N.: Do you anticipate there could be further projects like this in Saskatchewan?

Sprott: Definitely.

The Bakken is a worldclass resource. As it develops and as markets change, thereâ&#x20AC;&#x2122;s always going to be supply and demand requirements.

Currently weâ&#x20AC;&#x2122;re not

working on any new projects in the area, but thereâ&#x20AC;&#x2122;s definitely a lot of great opportunities in Saskatchewan and North Dakota.

P.N.: Without this straddle plant, are these NGLs ending up in our barbecues and furnaces?

Sprott: Thatâ&#x20AC;&#x2122;s a really hard question to answerâ&#x20AC;Ś The combination of gas that comes to your house comes from various sources in Western Canada. Some areas, like the SEEP plant, this will be C1, methane, but mixed with some gas from a different plant and another plant, etc.

Ultimately, it would be. But thereâ&#x20AC;&#x2122;s also other straddle plants throughout Western Canada where people are doing the exact same thing we are.

There are situations, say 20 years ago, when the commodity prices didnâ&#x20AC;&#x2122;t warrant spending capital to extract that value. Letâ&#x20AC;&#x2122;s say there was no market for propane and butane at the time. So it didnâ&#x20AC;&#x2122;t warrant building a new plant like SEEP to extract it. You would have just put it in your gas and burned it at the time.

P.N.: How does this project tie into the S-10 directives on restricting venting and flaring and their full implementation July 1? Did those directives result in higher volumes of gas collected, and thus more product passing through the line you are straddling? Do they play a significant role in the economic case for this plant?

Sprott: Theyâ&#x20AC;&#x2122;re kind of independent of each other. The reason we have this plant servicing the Vantage Pipeline is only due to the extra value we receive from those products. Itâ&#x20AC;&#x2122;s not due to any incremental flaring requirements, etc. That gas is already being conserved, for

example, the Flat Lake facility, where it goes through the plant once.

Weâ&#x20AC;&#x2122;re just extracting the incremental value from there.

P.N.: How large of an investment has been made into this project?

Sprott: Taking a step back in time here, since Pembina got involved in the Bakken in Q4 2014, with the acquisition of the Vantage pipeline, the incremental construction with pipeline laterals and the plant, itâ&#x20AC;&#x2122;s probably just under a $1 billion Canadian weâ&#x20AC;&#x2122;ve invested in the area. That includes the acquisition of the pipeline down to the Tioga plant, the pipeline to the SEEP plant, and the SEEP plant itself.

P.N.: How many people worked on construction at peak, and how many will operate it?

Sprott: For local contractors, we had about 75 people on site at peak. This plant, itself, will be operated by four full-time operators. ɸ Page A18

A17

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Deep cut plant extracts ethane for use in petrochemical industry ɺ Page A17 P.N.: When will it go into operation?

Sprott: We’re anticipating mid-August, about a month from now.

P.N.: Does this signal a broader role for Pembina in the region? Are there other gas or midstream opportunities in Saskatchewan you will be pursuing?

Sprott: Pembina as a whole, our core business is gas processing, liquids transportation, fractionation; that’s what we do. We like to think we’re okay at it. (laughs) The Bakken is such a prolific asset, that even in depressed prices, the activity is still happening. We’re always looking for new entrances into great geology where people are very active.

The Vantage system, with SEEP, essentially is an extension of our core business. It’s gas processing, it’s fractionation and liquids transportation.

P.N.: Is there anything you would like to add?

Sprott: We’re really, really excited about the SEEP plant starting up. We’re excited about the great geology the Bakken has to offer, and extending our footprint into Saskatchewan. We look forward to safe and reliable operations in Saskatchewan, just as we’ve had in Alberta for the last 60 years and being involved with the communities in which we operate.

PIPELINE NEWS August 2015

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A19

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PIPELINE NEWS August 2015

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By Brian Zinchuk Calgary – On July 1, 2015, Saskatchewan’s S-10 directives on natural gas conservation and reduction of flaring came into full effect, as the three year grandfather period for existing wells expired. That has led to substantial growth in gas collection. As Crescent Point Energy Corp. is now Saskatchewan’s largest oil producer, with about one quarter of total oil production, it has had to tackle the issue of gas conservation head-on.

Gas conservation has been part of its strategy for many years, however, as Ryan Gritzfeldt, Crescent Point’s vice president of engineering and business development east (southeast Saskatchewan and southwest Manitoba), explained. He spoke to Pipeline News on July 15 by phone from Calgary about what the company’s gas plant projects in southeast Saskatchewan.

Pipeline News: As Saskatchewan’s largest oil producer, Crescent Point correspondingly is likely the most impacted by the full implementation on July 1 of the S-10 directives for gas conservation.

In broad strokes, what does this mean for Crescent Point?

Ryan Gritzfeldt: It basically means business as usual. For several years now, we’ve invested significant capital into our long-term infrastructure projects to capture as much associated gas as possible. Obviously it takes time to integrate some of the acquisitions we do and capture gas at all those acquired facilities. But we we work very closely with the Ministry of Economy on all current directives,

S-10 included. So it’s basically business as usual.

We have a significant portion of our yearly annual capital budget that gets allocated to facility amalgamations and capturing stranded gas.

P.N.: Would you characterize the Bakken as “gassy?” What about its liquids content? How does this play into your development plans for southeast Saskatchewan?

Gritzfeldt: I would consider the Bakken gassy.

It has a gas-to-oil ratio of about a 1,000 standard cubic feet per barrel, which would be consider gassy.

On the liquids side, we pull about 120 barrels of liquid per million standard cubic feet of gas, a day.

The Bakken has always been liquids-rich.

Because of that, over the years, we have a greaterthan 40 million cubic foot per day gas plant that has full fractionation capability at Viewfield, as well as multiple batteries in the field now where gas is collected and set to that gas plant.

P.N.: What about the Torquay? Is it gassy?

Gritzfeldt: It’s gassy. It’s a little less gassy. I can’t give you an exact number yet, as it varies area by area, but as we drill more wells we’re getting more data on that. It is gassy, but less gassy than the Bakken. It is also liquids-rich, probably a little less so than the Bakken, but enough that we’re constructing that gas plant at Flat Lake.

Viewfield P.N.: The Viewfield gas plant has been the hub of Crescent Point’s largest core area. We understand it has been expanded several times. Can you explain? ɸ Page A21

These three towers at the Flat Lake gas plant separate ŽƵƚ͕ ĨƌŽŵ ƌŝŐŚƚ ƚŽ ůĞŌ͕ ƚŚĞ ĞƚŚĂŶĞ͕ ƉƌŽƉĂŶĞ ĂŶĚ ďƵƚĂŶĞ͕ ŝŶ ƚŚĂƚ ŽƌĚĞƌ͘ Photo by Brian Zinchuk

PIPELINE NEWS August 2015 Éş Page A20 Gritzfeldt: The first plant was built in 2005

by Mission Oil and Gas. It was about five million standard cubic feet day and was expanded to eight million a day in 2006.

Plant 2 was built in 2009 and was again expanded in 2010 to get us to about 22 million standard cubic feet per day.

Then Plant 3 was bolted onto Plant 2 in 2012, which brought us to about 30 million a day capacity.

Then Plant 4 was brought onstream last year, and that got us to our over-40 million a day current capacity.

P.N.: Are you using it at capacity or close to it?

Gritzfeldt: Yeah, itâ&#x20AC;&#x2122;s pretty much full. It seems like every time we plan to do an expansion, by the time that expansion comes onstream, itâ&#x20AC;&#x2122;s basically full and weâ&#x20AC;&#x2122;re at the point to plan for another expansion. That seems to be the way it goes there, in the Bakken.

P.N.: Will be there a Plant 5, then?

Gritzfeldt: We have started looking at that.

Iâ&#x20AC;&#x2122;m not going to say it will happen for sure. It depends on our future drilling plans. Weâ&#x20AC;&#x2122;ve basically learned to never say never. With continual drilling, as we keep acquiring, I would think we would do

another expansion at some point, but that hasnâ&#x20AC;&#x2122;t been confirmed or approved yet.

P.N.: How large of an area does Viewfield collect its gas from?

Gritzfeldt: This goes back to your question of what does S-10 mean for us. Over the past several years of drilling in the Bakken, obviously weâ&#x20AC;&#x2122;ve spent significant investment in gas infrastructure. If you look at all the infrastructure that branches out from the gas plant, it covers about seven townships, east-to-west, and four townships north-to-south, so it covers a very large area now.

P.N.: Do you accept gas from people other than yourselves?

Gritzfeldt: Yes, we do. Obviously joint interest partners, like where we have a well where weâ&#x20AC;&#x2122;re 90 per cent and theyâ&#x20AC;&#x2122;re 10 per cent. Weâ&#x20AC;&#x2122;ll take pure third-party gas only if we have room. Right now, weâ&#x20AC;&#x2122;re pretty full, so we wouldnâ&#x20AC;&#x2122;t be able to take much third-party gas.

P.N.: Is there any consideration to ship NGLs by rail from Stoughton?

Gritzfeldt: Weâ&#x20AC;&#x2122;re always looking at several opportunities to improve netbacks on any product we produce, and shipping natural gas liquids by rail is an option we have explored, and will continue to explore, but at this point we havenâ&#x20AC;&#x2122;t pulled the trigger on any project.

P.N.: Is there a tie-in with the Pembina

A21

straddle plant? We understand that the gas from near the border was supposed to be pipelined in a common trench to Viewfield. Did that happen?

Gritzfeldt: That straddle plant, the deep cut plant, is built right where our Viewfield gas ties into the TransGas main lateral. For us, all of our Viewfield gas will go through that straddle plant.

We did run a pipeline from our Flat Lake gas plant thatâ&#x20AC;&#x2122;s currently being built so that gas will, one, go through the deep cut as well, and two, be tied into TransGas there. Otherwise, if we built a gas plant at Flat Lake, sure, it would have fractionated the liquids out, but the gas would have just been flared. We had to find a sales point for that.

We make spec gas to tie into TransGas, and C3, C4, C5; propane, butane and C5+; basically condensate.

The deep cut pulls out ethane, which goes to Pembina. Thereâ&#x20AC;&#x2122;s a little bit more propane and butane that comes out as well, and thatâ&#x20AC;&#x2122;s for us to market.

Flat Lake P.N.: What have you built in the Flat Lake area? Where is it?

Gritzfeldt: The Flat Lake gas plant is at 9-161-14-W2. We have multiple batteries, now that gas plant, and that sales gas line that runs from Flat Lake to Viewfield to get us into the TranGas main lateral. ɸ Page A22

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PIPELINE NEWS August 2015

New capacity LV Ă&#x20AC;OOHG soon after it becomes DYDLODEOH The structural steel is being put in place for the pipe rack down the centre of the Flat Lake gas plant. On the right Ä&#x201A;Ć&#x152;Ä&#x17E; Ć&#x161;Ç Ĺ˝ Ä?ŽžĆ&#x2030;Ć&#x152;Ä&#x17E;Ć?Ć?Ĺ˝Ć&#x152; Ä?ĆľĹ?ĹŻÄ&#x161;Ĺ?ĹśĹ?Ć?Í&#x2DC; KĹś Ć&#x161;Ĺ&#x161;Ä&#x17E; ĹŻÄ&#x17E;Ĺ&#x152; Ĺ?Ć? Ć&#x161;Ĺ&#x161;Ä&#x17E; Ć&#x152;Ä&#x17E;ĨĆ&#x152;Ĺ?Ĺ?Ä&#x17E;Ć&#x152;Ä&#x201A;Ć&#x;ŽŜ ƾŜĹ?Ć&#x161;Í&#x2DC; dĹ&#x161;Ä&#x17E; Ć&#x161;Ĺ&#x161;Ć&#x152;Ä&#x17E;Ä&#x17E; Ć&#x161;Ĺ˝Ç Ä&#x17E;Ć&#x152;Ć? Ä&#x201A;Ć&#x152;Ä&#x17E; ĆľĆ?Ä&#x17E;Ä&#x161; ĨŽĆ&#x152; ĨĆ&#x152;Ä&#x201A;Ä?Ć&#x;ŽŜÄ&#x201A;Ć&#x;ŽŜ Ĺ?ĹśĆ&#x161;Ĺ˝ three natural gas liquids â&#x20AC;&#x201C; ethane, propane and butane.

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Éş Page A21 P.N.: What is the extent of its gathering area?

Gritzfeldt: Similar to Viewfield, in the short couple years weâ&#x20AC;&#x2122;ve been drilling at Flat Lake, it keeps expanding. It probably covers parts of four total townships now. Obviously itâ&#x20AC;&#x2122;s not as big as Viewfield, but we expect that to grow as we keep developing and exploring the edges there in the Flat Lake play.

P.N.: What sort of volumes will this plant handle?

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Gritzfeldt: Itâ&#x20AC;&#x2122;s going to be designed for 12 million (standard cubic feet) a day off the start. Itâ&#x20AC;&#x2122;s very similar to Viewfield. It will produce gas to meet TransGas spec, C3, C4, C5.

P.N.: Flat Lake is a primary growth area for Crescent Point. Is this gas plant meant to be the primary one for the region, or will you be building more?

Gritzfeldt: I think our strategy is, pending success on further development and exploration, is to expand and build out the infrastructure, similar to Viewfield.

(That means) keeping one gas plant, one footprint on the land, instead of having multiple gas plants. The thought would be to have just one, and expand your infrastructure from it.

P.N.: Do you anticipate expanding it in the future, as has been down with the View-

field plant?

Gritzfeldt: Itâ&#x20AC;&#x2122;s definitely designed to be expandable.

General P.N.: With Crescent Pointâ&#x20AC;&#x2122;s continual acquisition of junior companies, how does integrating those properties play into your gas strategy?

Gritzfeldt: Weâ&#x20AC;&#x2122;ve shown over the past several years, I think this is a common knowledge in the industry, owning infrastructure, gas infrastructure included, gives you a competitive advantage. It plays into our strategy for sure. Weâ&#x20AC;&#x2122;re also very cognizant doing our acquisition due diligence, understanding what we would have to do from a regulatory or environmental perspective any gas that would be flaring or venting, especially given the new S-10 guidelines. Obviously our goal is not to flare any unnecessary volumes.

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PIPELINE NEWS August 2015

A23

Construction supervisor retired once, but BSE put an end to that Oungre – Dave Foat, senior facilities construction supervisor for Crescent Point, had retired from his many years in the oilpatch in 2002, but a “mad cow” near Baldwinton, Sask. dashed that retirement plan in an instant.

Now he spends most of his time overseeing the construction of oil batteries and gas plants for Crescent Point Energy Corp. On July 16 he took Pipeline News on a tour of Crescent Point’s new Flat Lake gas plant, currently under construction.

“I came here in 2006 for a six-week job for Mission Oil & Gas. Crescent Point owned Mission before I finished that project, and they asked me to continue,” he said.

Foat is from Carstairs, Alta., It’s a long ways from southeast Saskatchewan, where he’s been working for nearly a decade, but still, Foat said, “I commute. I try to stay near the project.”

That currently means having his camper in Weyburn. In the past he’s rented a house in Stoughton.

Foat, who said his age is “north of 60,” began his career in the gas business.

“I was 19 when I started in gas processing for Hudson Bay Oil & Gas. I spent more than 30 years in the as processing industry.”

That included stints with Hudson Bay, Dome Petroleum, Home Oil, Interprovincial Pipe Line, Hiram Walker Worts, Anderson Exploration and Devon Energy.

“I went independent after that,” he said. Indeed, his work with Crescent Point is as a contractor.

“I actually retired from the industry in 2002, and went full-time ranching. A year and three months later, BSE hit.”

A million dollar investment quickly went down downhill. “We managed to save it,” he said. The

ranch is west of Carstairs, where they are still running 200 mother cows. “I cut the herd in half when I came here.”

His son was running the place while still in high school, so the herd reduction was meant to reduce the burden on him. That son is currently taking a chiropractor program.

Indeed, Foat, himself, had wanted to get into veterinary medicine, but he missed the stringent entrance requirements by half a percentage mark.

So instead of fixing cows, he decided to own them.

“Man, we came close (to losing it all). We let a bunch of rented land go, and sold off farm equipment,” he said of the Bovine spongiform encephalopathy, (BSE) crisis. There were times he saw $25 and $35 cheques for a cow at auction.

“Two of my closest friends lost their places.

I was desperate to save the family farm. I’m third generation. My son is fourth.”

“I spent all my retirement money earned in the oilpatch on feed in 2003. We had a drought.

Droughts are usually one year. But BSE didn’t recover. It was time to go to work.”

Fortunately, Foat had marketable skills. Among them, he is a second-class power engineer. After two years struggling to make it go with just the ranch, he was back in the oilpatch.

“A guy from the United Kingdom told us it would take 10 years to get through this,” Foat said.

That man was right. It’s now 12 years since BSE devastated the Canadian cattle business. Only the last two years have been among the best years Foat has seen in the business.

Still, he’s not going to retire just yet. “As long as I enjoy doing this, I’m in no hurry to retire. The week the NDP got elected (in Alberta), I know I wouldn’t be going back to Alberta to work!”

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A24

PIPELINE NEWS August 2015

New lighting and catwalk units for Accede Weyburn â&#x20AC;&#x201C; Accede Energy Services, and its Captive Rentals division, highlighted three recent products at the Saskatchewan Oil and Gas Show in Weyburn June 3-4.

Chad Farr, who heads up the Captive Rentals location in Estevan, described the first as a CCT unit â&#x20AC;&#x201C; a communications combo trailer.

While some companies provide mobile trailer-based cellular booster towers, and oth-

ers provide washroom and waste facilities, while yet others provide the ubiquitous light towers, the CCT combines all those functions into one unit. â&#x20AC;&#x153;This is our own design, built in-house out of Blackfalds, Alberta,â&#x20AC;?

Farr said.

The front of the trailer has his and hers washrooms. Thereâ&#x20AC;&#x2122;s a three-yard bin for bag garbage. Additional bins are provided for oil containment, oil filters and mixed waste.

Asked about having two different washrooms instead of just unisex washrooms, Farr said, â&#x20AC;&#x153;Thereâ&#x20AC;&#x2122;s more women on location.â&#x20AC;?

The fuel storage has a 400â&#x20AC;&#x201C;litre tank with its own secondary containment. Thereâ&#x20AC;&#x2122;s a second fuel tank for its 25 kilowatt generator. The whisper-quiet gen set is just that â&#x20AC;&#x201C; while operating during the oil show it was barely noticeable, unlike some generators you might find on a lease. You could carry

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a normal conversation right beside it without raising your voice. No earplugs are required.

The light tower has four high-output LED lights. Each puts out the equivalent of 1,000 watts for a conventional light.

The lights mount 40 feet high, but the tower extends much taller â&#x20AC;&#x201C; a total of 85 feet for the communications part.

Thatâ&#x20AC;&#x2122;s where one finds a cellular booster antenna. â&#x20AC;&#x153;We can bring in cellular service and boost it from there. This

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is new to the area,â&#x20AC;? Farr said. â&#x20AC;&#x153;We have 10 built, and weâ&#x20AC;&#x2122;re building another 10 more, and an additional 30 without communications. â&#x20AC;&#x153;I think theyâ&#x20AC;&#x2122;re going to take off.â&#x20AC;?

Stadium tower The next unit is similar to the first, but with more of an emphasis on lighting.

The wheeled stadium tower unit replaces the four lights with 16. The result is a unit that can replace up to five light towers on a frac site.

It can also be equipped with communications capabilities.

The tower extends 85 feet tall.

Pipe laydown unit The third new item is a new pipe laydown unit for service rigs. The catwalk can handle up to 4.5 inch pipe or casing. Itâ&#x20AC;&#x2122;s long enough to handle Range 3 pipe.

Thereâ&#x20AC;&#x2122;s enough space to handle 4,500 metres of pipe, stacked two tiers high.

Itâ&#x20AC;&#x2122;s a hydraulic unit, the first one Accede has

built. Its capabilities are new to the area, Farr said.

It has a ram to push the pipe up to the drill floor. The hydraulic system can lower the pipe racks to allow a second tier of pipe to be laid across them, with a layer of planks between them.

The automation minimizes pipe interaction with workers. â&#x20AC;&#x153;Nobody has to roll pipe or lift it. All they have to do is hook it and unhook it,â&#x20AC;? said Tom Tschetter, who did a demo of the unitâ&#x20AC;&#x2122;s operation.

Now in Kindersley Accede Energy Service recently expanded its operations to Kindersley, one of the hotspots for drilling in recent years. Farr said heâ&#x20AC;&#x2122;s working on getting a yard there. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re moving a full line of drilling equipment out there, followed by a full line of production and fracking equipment. Weâ&#x20AC;&#x2122;re shuffling things around and buying new.â&#x20AC;?

PIPELINE NEWS August 2015

A25

Solutions for H2S issues: AMGAS Regina – Addressing natural gas venting, flaring and fugitive emissions is a high priority for the provincial government. Provincial inspectors are currently fanning out across Saskatchewan.

The inspectors were also not very impressed when, following a semi hauling sour product, the emissions were so bad it was hard to drive close behind it.

AMGAS Services specializes in dealing with H2S and noxious emissions. They were an exhibitor at the Williston Basin Petroleum Conference in Regina in May. James Hewson is based out of Weyburn servicing Southeast Saskatchewan and Manitoba. Dave Bender covers Southwest Saskatchewan and Rick Somers works out of our Minot operations branch servicing North Dakota.

“H2S control are our main focus, always has been,” said Hewson.

“Between mechani-

cal and chemical solutions, we have ways of dealing with H2S in all aspects of the industry, from drilling, completions to production and turnarounds.”

Bender noted they have trailer-mounted, scrubber units for fluid transportation such as sour water and crude oil.

These units are available in various sizes, can be custom designed and can handle all aspects of H2S emission control.

In addition to H2S, AMGAS can provide scrubbing solutions for hydrocarbon emissions as well” AMGAS scrubbers for tanker trucks are very diverse and are able to be installed on any type of fluid hauling truck.

How it works is proprietary information, but it does involve gas passing through a liquid.

Units are sized based on flow rates and gas concentrations.

“We design, own and manufacture our own scrubbing units,

with our own chemistry,” Hewson said.

AMGAS operates at the intersection of chemicals, equipment and service for tank venting, truck loading, and turnarounds just to mention a few of their services.

“A big part of AMGAS is full service,” said Bender. That includes chemical testing and scrubber changeouts.

AMGAS is based in Balzac, Alta. They also have locations in Weyburn; Minot, N.D.; Poteet, Texas; Provost, Alta.; Grande Prairie, Alta.

“We also do work internationally,” Hewson said. That includes Australia, Asia and the Middle East.

Hewson noted AMGAS has been a leader in H2S treatment since the late 1980s. they take pride in working closely with their clients to ensure safety onsite and provide expert assistance for all H2S and BTEX treatments.

&ƌŽŵ ůĞŌ͕ :ĂŵĞƐ ,ĞǁƐŽŶ͕ ZŝĐŬ ^ŽŵĞƌƐ ĂŶĚ ĂǀĞ ĞŶĚĞƌ ƌĞƉƌĞƐĞŶƚĞĚ D' ^ ^ĞƌǀŝĐĞƐ Ăƚ ƚŚĞ tŝůůŝƐƚŽŶ ĂƐŝŶ WĞƚƌŽůĞƵŵ ŽŶĨĞƌĞŶĐĞ͘ Photo by Brian Zinchuk

:63 UHFHQWO\ ÀQLVKHG PLOOLRQ KHDY\ RLO EDWWHU\ Weyburn – Worldwide engineering firm WSP Global Inc., which has 32,000 employees around the globe, was one of the exhibitors at the Saskatchewan Oil and Gas Show June 3-4.

In this province the company has operations in Saskatoon, Regina and Swift Current. In total, approximately 150 people work in Saskatchewan.

That number includes a survey group, Focus Corporation, purchased about a year ago.

Ken Rumsey of Re-

gina is a project manager who works in WSP’s oil and gas engineering side.

He explained they work on facilities engineering such as oil batteries, compressor stations and pipelines.

Gord Anderson, a mechanical technologist our of Regina said things have been going pretty good. He talked to some of their old contacts while at the oil show.

They just finished a $20 million heavy oil battery near Kerrobert, Anderson added.

“We do a fair bit

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A26

PIPELINE NEWS August 2015

Timberwolf howls its A to Z lease services Â&#x201E; By Geoff Lee

ZÄ&#x17E;Ĺ? ZĹ?Ç&#x20AC;Ä&#x201A;Ć&#x152;Ä&#x161;Í&#x2022; ĹŻÄ&#x17E;Ĺ&#x152;Í&#x2022; Ä&#x201A;ĹśÄ&#x161; Ĺ&#x161;Ĺ?Ć? Ä?Ć&#x152;Ĺ˝Ć&#x161;Ĺ&#x161;Ä&#x17E;Ć&#x152; ZÄ&#x17E;Ä&#x201A;ĹŻ Ä?Ĺ˝Í˛Ĺ˝Ç Ĺś dĹ?ĹľÄ?Ä&#x17E;Ć&#x152;Ç Ĺ˝ĹŻÄ¨ ĹśÇ&#x20AC;Ĺ?Ć&#x152;ŽŜžÄ&#x17E;ĹśĆ&#x161;Ä&#x201A;ĹŻ ^Ä&#x17E;Ć&#x152;Ç&#x20AC;Ĺ?Ä?Ä&#x17E;Ć? >Ć&#x161;Ä&#x161;Í&#x2DC; Ĺ?Ĺś ŽŜŜÇ&#x2021;Ç&#x20AC;Ĺ?ĹŻĹŻÄ&#x17E; Ć&#x2030;Ć&#x152;Ĺ˝Ç&#x20AC;Ĺ?Ä&#x161;Ĺ?ĹśĹ? Ä&#x201A;Ĺś Ä&#x17E;Ç&#x20AC;Ä&#x17E;Ć&#x152; Ĺ?Ć&#x152;Ĺ˝Ç Ĺ?ĹśĹ? ĹŻĹ?Ć?Ć&#x161; ŽĨ ĹŻÄ&#x17E;Ä&#x201A;Ć?Ä&#x17E; ĹľÄ&#x201A;Ĺ?ĹśĆ&#x161;Ä&#x17E;ĹśÄ&#x201A;ĹśÄ?Ä&#x17E; Ć?Ä&#x17E;Ć&#x152;Ç&#x20AC;Ĺ?Ä?Ä&#x17E;Ć? Ć&#x161;Ĺ˝ ĹŹÄ&#x17E;Ä&#x17E;Ć&#x2030; Ä?ĆľĆ?Ç&#x2021;Í&#x2DC; WĹ&#x161;Ĺ˝Ć&#x161;Ĺ˝ Ä?Ç&#x2021; 'Ä&#x17E;Žč >Ä&#x17E;Ä&#x17E;

Â&#x2021;

Bonnyville â&#x20AC;&#x201C; It was fitting that Timberwolf Environmental Services Ltd. featured a stress ball contest at its booth during the Bonnyville & District Oil Show.

Just about everyone who stopped by the booth squeezed a ball or two hoping to ease the pain of the downturn in the oilfield and win an iPad 3 mini by guessing the number of balls in the container.

For brothers Reg and Real Rivard who co-own Timberwolf, relief from the downturn

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is coming from their strategy to diversify. â&#x20AC;&#x153;Diversify and provide more services,â&#x20AC;? is Regâ&#x20AC;&#x2122;s answer to keeping busy.

Timberwolf, based in Bonnyville, specializes in secondary containment, lease cleanups and lease and well abandonments, but it is morphing into an A-to-Z lease services provider.

The company serves clients from Manitoba to British Columbia. â&#x20AC;&#x153;We work all over the place,â&#x20AC;? said Reg who rattled off a full list of their lease maintenance offerings and activities for Pipeline News readers. â&#x20AC;&#x153;We do secondary containment services, lease clean up, lease mowing, snow removal and sanding, hot shots and picker services, lease/well abandonments, vegetation spraying, Bobcat services, water pumping, gravel hauling, erosion control and labour crews.â&#x20AC;?

The company added vegetation lease spraying to its mix of services with spraying underway in the region the week of the oil show held June 17-18, at the Centennial Centre.

Previously, Timberwolf launched a lease mowing service as they continue on a deliberate diversification path. â&#x20AC;&#x153;Absolutely, you canâ&#x20AC;&#x2122;t have all your eggs in one basket and you canâ&#x20AC;&#x2122;t always rely on new construction to keep your business going,â&#x20AC;?

said Real. â&#x20AC;&#x153;You have to diversify. We find that maintenance is the way to go there.â&#x20AC;? â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re getting into vegetation control and weâ&#x20AC;&#x2122;re hoping to do more of that in the years to come. Itâ&#x20AC;&#x2122;s a good opportunity. â&#x20AC;&#x153;There are not that many people who do it and we are pretty much the only local company that does it.â&#x20AC;?

Real explained that vegetation spraying prevents weeds that grow on lease sites from spreading onto farmerâ&#x20AC;&#x2122;s fields. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s a relationship that oil companies have to develop and maintain with the agriculture side of it so the weeds do not spread and they are maintained,â&#x20AC;? he said.

Real signed up a time slot in the oilmenâ&#x20AC;&#x2122;s room, a reverse networking opportunity that enables exhibitors to make face-to-face contacts with decision makers from the areaâ&#x20AC;&#x2122;s top producing companies.

This yearâ&#x20AC;&#x2122;s oilmenâ&#x20AC;&#x2122;s room participants were Husky Energy, Canadian Natural Resources, Devon, Osum Oil Sands and Imperial Oil. â&#x20AC;&#x153;It was good. I was hoping to make different contacts with new companies and provide them with the services we provide, and, hopefully have a long term lasting relationship with them,â&#x20AC;? said Real. ɸ Page A27

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PIPELINE NEWS August 2015

Career spent mostly in Alberta RLOĂ&#x20AC;HOG EXW 6DVN LV VWLOO KRPH North Portal â&#x20AC;&#x201C; Grant Olson grew up in North stint with Renaissance in southwest Saskatchewan, then went to Calgary with Viking Energy. â&#x20AC;&#x153;I was Battleford, where his father was the Massey dealer. the production Now heâ&#x20AC;&#x2122;s the opforeman for southerations superintendent for Steel Reef ern Alberta, from Stettler to the U.S. Infrastructure Corp. border, Highway The company is cur2 to the Saskatchrently expanding its ewan border.â&#x20AC;? new North Portal gas plant and will soon Like many others in the be building another gas plant near Alamoilpatch, his career then took him to eda.

Olson left North work for â&#x20AC;&#x153;a few Battleford in 1984 companies.â&#x20AC;? He ended up at Galand went to Lloyleon Energy for 8.5 dminster. â&#x20AC;&#x153;Thatâ&#x20AC;&#x2122;s years as production when I started in the oilfield. I was 21,â&#x20AC;? he manager. â&#x20AC;&#x153;Most of our work was in said. the Grande Prairie There he worked area,â&#x20AC;? Olson said. in oilfield mainte'Ć&#x152;Ä&#x201A;ĹśĆ&#x161; KĹŻĆ?ŽŜ Ĺ?Ć&#x152;Ä&#x17E;Ç ĆľĆ&#x2030; Ĺ?Ĺś EĹ˝Ć&#x152;Ć&#x161;Ĺ&#x161; Ä&#x201A;ĆŠĹŻÄ&#x17E;ĨŽĆ&#x152;Ä&#x161;Í&#x2022; Ć?ŽŜ ŽĨ Ä&#x201A; ĨÄ&#x201A;Ć&#x152;Ĺľ Ä&#x17E;Ć&#x2039;ĆľĹ?Ć&#x2030;nance for a few years.

In September ĹľÄ&#x17E;ĹśĆ&#x161; Ä&#x161;Ä&#x17E;Ä&#x201A;ĹŻÄ&#x17E;Ć&#x152;Í&#x2022; Ä?Ä&#x17E;ĨŽĆ&#x152;Ä&#x17E; Ĺ&#x161;Ä&#x17E; Ĺ?Ĺ˝Ć&#x161; Ĺ?ĹśĆ&#x161;Ĺ˝ Ć&#x161;Ĺ&#x161;Ä&#x17E; Ĺ˝Ĺ?ĹŻĆ&#x2030;Ä&#x201A;Ć&#x161;Ä?Ĺ&#x161;Í&#x2DC; 2014 he left Galâ&#x20AC;&#x153;I started operatPhoto by Brian Zinchuk leon and in Deceming in 1989 in the ber he joined Steel Provost area. I spent five years on a crew Reef. truck.â&#x20AC;?

Strathmore, Alta., is where he hangs his hat, He operated from 1989 to 2003, including a but Olson added, â&#x20AC;&#x153;Saskatchewanâ&#x20AC;&#x2122;s still home.â&#x20AC;?

A27

INDUSTRIAL COMMERCIAL RESIDENTIAL Site Delivery

A to Z Éş Page A26 â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s tougher right now for sure. Weâ&#x20AC;&#x2122;re hoping that the economy does come back up, but in times like this you have to go after every little chance you get.â&#x20AC;? â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;ll get through it,â&#x20AC;? added Reg, who was glad to be a part of the oil show to generate new business. â&#x20AC;&#x153;Maybe, thereâ&#x20AC;&#x2122;s some people who arenâ&#x20AC;&#x2122;t aware of what we do â&#x20AC;&#x201C; exposure, right? You never know who you might run into.â&#x20AC;?

Timberwolf was launched in 2011, and has grown to about 15 employers for year-round lease maintenance work. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s been good.

Weâ&#x20AC;&#x2122;re four years in now so weâ&#x20AC;&#x2122;re still a young company, but weâ&#x20AC;&#x2122;ve come a long ways in four years and hope to continue to grow,â&#x20AC;? said Real.

Timberwolf has everything from dump trucks and Bobcats to tractors and mowers and water pumps for its lease work. â&#x20AC;&#x153;We do road sanding, too. Weâ&#x20AC;&#x2122;re just trying to get into more things that will keep us moving,â&#x20AC;? said Real, who gripped a stress ball in his hand for a photo op.

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PIPELINE NEWS August 2015

Kenilworth turns oil show ideas into sales Â&#x201E; By Geoff Lee Bonnyville â&#x20AC;&#x201C; Attending oil and gas shows is paying off with sales and exposure for Kenilworth Combustion Ltd., a company that manufactures innovative and reliable combustion products in Vermilion.

The company show,Ä&#x17E;Ĺ?ĹśÄ&#x17E; tÄ&#x17E;Ć?Ć&#x161;Ä&#x17E;Ć&#x152;Ĺ?Ä&#x201A;Ä&#x201A;Ć&#x152;Ä&#x161;Í&#x2022; Ć&#x2030;Ć&#x152;Ä&#x17E;Ć?Ĺ?Ä&#x161;Ä&#x17E;ĹśĆ&#x161; ŽĨ <Ä&#x17E;ĹśĹ?ĹŻÇ Ĺ˝Ć&#x152;Ć&#x161;Ĺ&#x161; ŽžÄ?ĆľĆ?Ć&#x;ŽŜ >Ć&#x161;Ä&#x161;Í&#x2DC;Í&#x2022; Ä&#x161;Ä&#x17E;žŽŜĆ?Ć&#x161;Ć&#x152;Ä&#x201A;Ć&#x161;Ä&#x17E;Ć? Ĺ&#x161;Ĺ˝Ç Ć&#x161;Ĺ˝ cased two new transport Ĺ&#x161;ŽŽŏ ĆľĆ&#x2030; Ä&#x201A; ĹśÄ&#x17E;Ç Ĺ?Ä&#x201A;Ć&#x161;Ä&#x17E; Ç&#x20AC;Ä&#x201A;ĹŻÇ&#x20AC;Ä&#x17E; Ć?Ä&#x201A;ĨÄ&#x17E;Ć&#x161;Ç&#x2021; Ä&#x161;Ä&#x17E;Ç&#x20AC;Ĺ?Ä?Ä&#x17E; Ä&#x201A;Ć&#x161; Ć&#x161;Ĺ&#x161;Ä&#x17E; ŽŜŜÇ&#x2021;Ç&#x20AC;Ĺ?ĹŻĹŻÄ&#x17E; Ĺ˝Ĺ?ĹŻ Ć?Ĺ&#x161;Ĺ˝Ç Í&#x2DC; dĹ&#x161;Ĺ?Ć? Ĺ?Ä&#x201A;Ć&#x161;Ä&#x17E; Ç&#x20AC;Ä&#x201A;ĹŻÇ&#x20AC;Ä&#x17E; Ä&#x161;Ä&#x17E;Ç&#x20AC;Ĺ?Ä?Ä&#x17E; loading safety devices at and a ball valve safety device make it impossible for truckers to disconnect before they the Bonnyville & DisĹ&#x161;Ä&#x201A;Ç&#x20AC;Ä&#x17E; Ä?ĹŻĹ˝Ć?Ä&#x17E;Ä&#x161; Ć&#x161;Ĺ&#x161;Ä&#x17E; Ç&#x20AC;Ä&#x201A;ĹŻÇ&#x20AC;Ä&#x17E;Í&#x2DC; WĹ&#x161;Ĺ˝Ć&#x161;Ĺ˝ Ä?Ç&#x2021; 'Ä&#x17E;Žč >Ä&#x17E;Ä&#x17E; trict Oil and Gas Show that were developed from contacts made at the Lloydminster heavy oil show last fall.

The latest products are a new a gate valve safety device and a ball valve safety device that are designed to bolt directly to the gate and ball valves commonly used on oil storage tanks.

The safety devices make it impossible for truckers to disconnect before they have closed the valve. ÂŽ Kenilworth president and product developer Heine Westergaard demonstrated how to Backhoe & Hotshot Service Available connect them for show goers at the Centennial Centre, in Bonnyille June 17-18, and spoke about where he got the idea from.

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â&#x20AC;&#x153;We were approached last year at the Lloydminster oil show by a local customer who said this is an issue in the industry not just for them where thereâ&#x20AC;&#x2122;s been several spills caused by hoses being disconnected either by accidental release or people simply getting complacent in their tasks,â&#x20AC;? he said. â&#x20AC;&#x153;Theyâ&#x20AC;&#x2122;ll do these connections a hundred times a day and what happens is sometimes you just get sidetracked. â&#x20AC;&#x153;So, this device is put in place, so thereâ&#x20AC;&#x2122;s no physical way you can have that hose come off. â&#x20AC;&#x153;It simply slides over so they canâ&#x20AC;&#x2122;t have an accidental disconnect on their hose causing a spill so itâ&#x20AC;&#x2122;s a spill elimination product.â&#x20AC;?

Kenilworth had installed 780 of the gate valve units up to the oil show since they came on the market on Jan. 1 this year. â&#x20AC;&#x153;On the ball valve device, we just started putting the first 100 of those on and theyâ&#x20AC;&#x2122;ve had zero incidents and spills since they were installed with that company,â&#x20AC;? said Westergaard.

One of the main selling points of the

devices is that the install time is quick and requires no down time.

Kenilworth is best known as a developer and manufacturer of burner systems for the oil and gas industry from 25,000 to 20 million BTUs as well a few other innovative products in emissions capturing systems for tank odours. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s a never-ending game of development,â&#x20AC;? said Westergaard who has been improving burner and oil tank skim systems for over 20 years.

As for the effect of the downturn of business, he said,â&#x20AC;? Weâ&#x20AC;&#x2122;ve seen thereâ&#x20AC;&#x2122;s been a definite decrease in sales, but thereâ&#x20AC;&#x2122;s lot of good optimism out there. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;ve hit several trade shows this year with very optimistic results from each one. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re at quoting stages; weâ&#x20AC;&#x2122;ve got orders coming in and sales are happening. â&#x20AC;&#x153;The number one selling product for us right now is the transport loading safety devices as well as our floating stainless steel skim systems. ɸ Page A29

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PIPELINE NEWS August 2015 ɺ Page A28 “They’ve been moving the most and we’re just seeing the burning systems sales starting to pick up now.”

Westergaard said booking a booth at the Bonnyville oil show was a nobrainer based on past sales results at the show for his company.

“Bonnyville has also been a solid place, a good community and there’s lots of good support around it. As well, it’s been a very active oil and gas industry for several years,” he said.

“It has seen a bit of a slowdown, but we want to be in the forefront of everyone’s minds when everything picks up again.”

Westergaard notes that he definitely gets full value for the money he

invests in the show.

“The show board does an excellent job of putting every together and they really cater to the exhibitors and they try their best to bring people in for the show,” he said.

One of the major benefits for exhibitors is the oilmen’s room, a reverse networking opportunity to make face to face contacts with representatives from the major producers in the region.

This year, Canadian Natural Resources, Osum Oil Sands, Husky, Devon and Imperial Oil sponsored the oilmen’s room that Westergaard is always prepared for.

“So, basically I kind of refer to it as speed dating with oil companies, so I put together a small presentation of a

Contain Enviro Services with a layer of gravel.

“We put a backfill layer over our Geomembrane,” Moore said.

All the fasteners have rubber gaskets, ensuring a liquid-tight seal.

“It’s common to us, but not others. Others are not leak-proof,” he said.

Contain Enviro can provide frac tank liners as well, Eckert said. dŚŝƐ ƐĞƩůĞŵĞŶƚ ĚĞƚĞĐƟŽŶ ƚ͕ ĂƐ ƐŚŽǁŶ ďLJ ŝůů DŽŽƌĞ͕ A patented product ŐŽĞƐ ĂƌŽƵŶĚ ƉŝůŝŶŐƐ͘ /ƚ ŚĂƐ ĞŶŽƵŐŚ ͚ŐŝǀĞ͛ ƚŽ ĂůůŽǁ ƚŚĞ ŐƌŽƵŶĚ they carry is the SD ĂƌŽƵŶĚ ƚŚĞ ƉŝůŝŶŐ ƚŽ ƐĞƩůĞ ǁŝƚŚŽƵƚ ƚĞĂƌŝŶŐ ƚŚĞ ŵĞŵďƌĂŶĞ͘ Boot, settlement detection boots.

Weyburn – Contain corrugated steel product They look like the Enviro Services had that is manufactured by rubber housing on a CV some shiny secondary Westeel. It’s galvanized boot on a front-wheelcontainment compowith zinc coating. drive car, except instead nents in its booth at the “We do all the of going over an axel, Saskatchewan Oil and prefabrication in Cold they go over a pile. The Gas Show June 3-4.

Lake and Grand Prairie,” ribbed portion allows Bill Moore works Moore said. the boot to stretch. The out of Calgary while It’s the same steel top part of the boot is Glenn Eckert works out used for grain bins, he attached to the pile. The Edmonton. Both work noted. That makes sense bottom part is attached in business development. as Westeel is a major to the liner. This allows They detailed what was grain bin manufacturer for expansion according in the display. for the agricultural secto ground movement.

Secondary containtor.

“If there’s settlement ment is their bread and They also provide onsite we can handle up butter business. The crossover ladders and to 16 inches of settlecompany is based in stairs. ment,” Eckert said.

Grande Prairie.

Contain’s product The boot is welded “We supply and is suited for plant sites to the Geomembrane. install product,” said with durations of six This product is espeMoore. months or greater. It cially useful in areas of They noted a recent can be added like Lego muskeg, they noted. “We positive meeting with blocks, Moore said. use it on all our sites,” a significant local oil “It’s expandable, a Eckert said. producer, he noted. modular system.”

For primary conThe flexibility built tainment the company into the system inhas its Geomembrane cludes radius panels and line. This product is straight sections. “We used to line ponds and can accommodate any pits. Examples include size or shape,” he noted. produced water storage “Our panels overlap areas and landfills. and have a flush face.

Rainwater collecWe have a basemount tion ponds are another liner.” application for primary By mounting the containment. liner near the bottom of Plant sites include the sidewalls, less of the facilities and tank farms. liner is exposed to ulFor secondary traviolet rays which can containment, Moore cause deterioration. It’s spoke of their 15-gauge typical to cover the liner

product or products that are relevant to that company’s operations,” he said.

“It’s very specifically geared to them and then I have just a few minutes to wow them as what we can do product-wise and service-wise.”

At the 2013 show, Westergaard recalls speaking with the vice-president of Osum and some procurement people from Husky and Imperial.

“It’s just the matter of opening that door and giving us that opportunity, and by the show board putting together the opportunity up there, it’s a huge benefit to come into this show,” he said.

“What we get out that is the initial introduction and we will take a contact for a follow up meeting after the fact.”

Exhibitors like Kenilworth get about five minutes to speak with each of the producers in the oilmen’s room and those who wing-it may pay the price.

A29

“Preparedness and things that like is what they look for, as well as professionalism and product availability,” said Westergaard who was eager for his turn.

“The key to a successful presentation is to be direct and forward as to what product is applicable to that oil company, so that you are not wasting their time or your own,” he said.

“I did market research on the company and what their operations are and what product I have that will specifically meet their needs today.”

Westergaard said the reps in the oilmen’s room will bring the information pitched by exhibitors back to their folks in procurement and then they’ll have further discussions from there.

“Basically, we want to spark the interest in our company with them and let them know this is the product we have specifically geared for them for that application,” said Westergaard.

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A31

Dempsey Laird honoured as SE Sask.

Oilman of Year Ä&#x17E;ĹŻ DŽŜÄ&#x161;Ĺ˝Ć&#x152;Í&#x2022; ĹŻÄ&#x17E;Ĺ&#x152;Í&#x2022; Ä&#x201A;ĹśÄ&#x161; ZÄ&#x201A;Ç&#x2021; &Ć&#x152;Ä&#x17E;Ĺ&#x161;ĹŻĹ?Ä?ĹŹÍ&#x2022; Ć&#x152;Ĺ?Ĺ?Ĺ&#x161;Ć&#x161;Í&#x2022; Ć&#x2030;Ć&#x152;Ä&#x17E;Ć?Ä&#x17E;ĹśĆ&#x161;Ä&#x17E;Ä&#x161; Ä&#x17E;ĹľĆ&#x2030;Ć?Ä&#x17E;Ç&#x2021; >Ä&#x201A;Ĺ?Ć&#x152;Ä&#x161;Í&#x2022; Ä?Ä&#x17E;ĹśĆ&#x161;Ć&#x152;Ä&#x17E; Ç Ĺ?Ć&#x161;Ĺ&#x161; Ä&#x201A; Ć&#x2030;ĹŻÄ&#x201A;Ć&#x2039;ĆľÄ&#x17E; ĨŽĆ&#x152; ^ŽƾĆ&#x161;Ĺ&#x161;Ä&#x17E;Ä&#x201A;Ć?Ć&#x161; ^Ä&#x201A;Ć?ĹŹÄ&#x201A;Ć&#x161;Ä?Ĺ&#x161;Ä&#x17E;Ç Ä&#x201A;Ĺś KĹ?ĹŻĹľÄ&#x201A;Ĺś ŽĨ Ć&#x161;Ĺ&#x161;Ä&#x17E; zÄ&#x17E;Ä&#x201A;Ć&#x152;Í&#x2DC; Photo by Brian Zinchuk

Â&#x201E; By Brian Zinchuk Weyburn â&#x20AC;&#x201C; Dempsey Laird was honoured on June 3 as one of two Southeast Saskatchewan Oilmen of the Year. The award was presented at the Saskatchewan Oil and Gas Show in Weyburn.

Ray Frehlick made the presentation. â&#x20AC;&#x153;This gentlemanâ&#x20AC;&#x2122;s been in the oilpatch since 1955. At that time, Alida, Saskatchewan, was kind of a hotbed for oil. At that time, R.E. Line had many employees there,â&#x20AC;? Frehlick said. â&#x20AC;&#x153;There were no pipelines at that time.

Everyone trucked their oil. Dempsey Laird was in charge of rail cars, loading rail cars at Nottingham, Carnduff, Alida in those days.â&#x20AC;?

Frehlick said, â&#x20AC;&#x153;In 1960, Dempsey Laird and his wife moved to Halbrite, and they trucked oil out of Halbrite for quite a number of years before they started their own business in Halbrite, trucking oil and water. He continued on until his retirement. He turned his business over to his family, and they still run it. At its peak, they had something like 67 employees. I think today they still have 57.

Theyâ&#x20AC;&#x2122;re very dedicated to their employees.

â&#x20AC;&#x153;He was also heavily involved in the community of Halbrite. He hired summer students, kids to work, and give them some income.â&#x20AC;?

Laird now resides in Moose Jaw. â&#x20AC;&#x153;I thank you, not from the bottom of my heart, but from all the people of this province, for making Halbrite a better community, Saskatchewan a better province and Canada a better country,â&#x20AC;? Frehlick concluded.

In response, Laird thanked all those who made this possible.

Laird said he was born in Glaslyn, Sask. in 1932. After graduation from high school he went to Powell River, B.C. and worked for Northern Construction for six months. He returned to Saskatchewan and worked in Prince Albert. He hauled lumber in the winter, and gravel in the summer.

In 1953 he worked for the Sask. Timber Board in the office, and then in the spring of 1954 he started moving dozers and road equipment. â&#x20AC;&#x153;In December, when it froze up, I went to Alida, Saskatchewan visit my brother who worked for R. E. Line Trucking in the oilfield.

I started driving truck for R.E. Line in De-

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cember 1955, loading tank cars in Alida, Nottingham and Steelman, until Producers Pipeline came in in 1957. Then we hauled oil to the pipeline,â&#x20AC;? Laird said.

He loaded rail cars at Carievale for two years. â&#x20AC;&#x153;I met Marion Jackson. Marion was a farm girl from northeast Alida. I met her in 1956.

We were married June 29, 1957. We have five children, four girls and one boy.â&#x20AC;? â&#x20AC;&#x153;I moved to Halbrite in 1960 and worked as a foreman for 1960.â&#x20AC;?

Hudson Bay Oil drilled a well in 1965 near Gladmar which had quite a bit of product. â&#x20AC;&#x153;That was quite a feat to haul oil 75 miles from Gladmar to Midale with the equipment we had at that time, but we managed to do it.â&#x20AC;?

In May 1978 R.E. Line Trucking became Dempsey Laird Trucking, and by 1985 they were running 41 trucks.

He retired in 1998 and three children Trevor Laird, Nancy St. Jules, and Ione Scott now own and operate the business.

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PIPELINE NEWS August 2015

Secure open for business everywhere Â&#x201E; By Geoff Lee Bonnyville â&#x20AC;&#x201C; Secure Energy Services had a lot of explaining to do about all the services it provides to the oil and gas industry during the Bonnyville & District Oil and Gas Show.

Fortunately, an informative media handout at their booth listed their full menu of services under the headings of processing, recovery and disposal services, drilling services and onsite services.

Brad Pelley, a sales and marketing rep for Secureâ&#x20AC;&#x2122;s Silverdale facility near Lloydminster was also on hand to help describe what the company is into. â&#x20AC;&#x153;We provide environmentally sound solutions for land fill and for the treating of

oil, marketing of oil,â&#x20AC;? he said. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re getting into rail transloading, so we have a wide gamut of stuff that we provide right from the permit of a well to the completion of a well. â&#x20AC;&#x153;When they are getting ready to shut that well in, we can do all of the cleanup and the environmental stuff for them as well.â&#x20AC;?

Secureâ&#x20AC;&#x2122;s main mission during the June 17-18 oil show held at the Bonnyville Centennial Centre was to broadcast their services and facility locations to new clients.

As Pelly put it, â&#x20AC;&#x153;We hope to meet some new clients and make awareness of Secure and our new facilities and where we are all located.â&#x20AC;?

Secure is a fast

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growing company with 26 locations throughout Western Canada with a presence in North Dakota and Colorado in the United States. â&#x20AC;&#x153;The more facilities, the closer it is for oilfield companies to get there, so trucking can cost less,â&#x20AC;? said Pelley. â&#x20AC;&#x153;Hopefully, we can get more awareness of where we are.â&#x20AC;?

Secure opened a new landfill disposal facility in Tulliby Lake last October to tap into the Bonnyville and Cold Lake oilfield waste market.

The landfill site is located about a half hour drive south of Bonnyville and offers slop treating as well. â&#x20AC;&#x153;Things have been growing. Itâ&#x20AC;&#x2122;s getting busier pretty much every week there,â&#x20AC;? said Pelley.

Brad Pelley from Lloydminster quarterbacked the Secure Energy Services booth at the ŽŜŜÇ&#x2021;Ç&#x20AC;Ĺ?ĹŻĹŻÄ&#x17E; Ĺ˝Ĺ?ĹŻ Ä&#x201A;ĹśÄ&#x161; Ĺ?Ä&#x201A;Ć? Ć?Ĺ&#x161;Ĺ˝Ç Í&#x2DC; dĹ&#x161;Ä&#x17E; Ä?ŽžĆ&#x2030;Ä&#x201A;ĹśÇ&#x2021; Ć&#x2030;Ć&#x152;ŽžŽĆ&#x161;Ä&#x17E;Ä&#x161; Ĺ?Ć&#x161;Ć? ĹśÄ&#x17E;Ç Ä?ĹŻÄ&#x201A;Ć?Ć? Ď­ ĹŻÄ&#x201A;ĹśÄ&#x161;ÄŽĹŻĹŻ Ä&#x161;Ĺ?Ć?Ć&#x2030;Ĺ˝Ć?Ä&#x201A;ĹŻ Ć?Ĺ?Ć&#x161;Ä&#x17E; in Tulliby Lake located a half hour drive south of Bonnyville. WĹ&#x161;Ĺ˝Ć&#x161;Ĺ˝ Ä?Ç&#x2021; 'Ä&#x17E;Žč >Ä&#x17E;Ä&#x17E;

â&#x20AC;&#x153;That facility opened in October and we are already doing lots there. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s a Class 1 landfill, so itâ&#x20AC;&#x2122;s all oilfield environmental waste.

When a company like CNRL or Devon is doing a cleanup on a spill on a lease location, all that can be taken to our landfill.â&#x20AC;?

The Silverdale facility located two minutes south of Lloydminster where Pelley works provides custom treating of oil and marketing of oil. â&#x20AC;&#x153;We buy oil from producers and we market it out on the open

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market and hopefully get them the best price we can, so we get net back on the oil,â&#x20AC;? said Pelley.

In Kindersley, Secure has a rail transloading facility and also provides custom treating of oil and oil marketing with further expansion into Saskatchewan possible. â&#x20AC;&#x153;There is expansion hopefully in the future planned for that way, but nothing set in stone in the books yet,â&#x20AC;? said Pelley.

As for the impact of the downturn in commodity prices on business, Pelley noted activity has slowed down but the situation during the oil show is better than it was earlier in the year. â&#x20AC;&#x153;Volumes are down because low-producing wells get shut in, but the high-producing wells, they still have to get that stuff treated and to

market,â&#x20AC;? he explained. â&#x20AC;&#x153;So we are still busy, but we definitely notice the downturn, but over the last month and half we are seeing things come on up slowly again.â&#x20AC;?

He pointed to the narrowing of price differential on the oil markets as a sign activity is picking up. â&#x20AC;&#x153;Thereâ&#x20AC;&#x2122;s a little bit of drilling starting up and a little of service work starting up. Things are definitely starting to come back,â&#x20AC;? he said.

The marketing focus for Secure in this economic climate is to promote itself as providing a first class service at a reasonable rate. â&#x20AC;&#x153;Hopefully, having so many services available that are all kind of linked together â&#x20AC;&#x201C; hopefully with a total solution package we can save companies money,â&#x20AC;? said Pelley.

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PIPELINE NEWS August 2015

EŽƌƚŚ ĂƩůĞĨŽƌĚ ŵĂLJŽƌ /ĂŶ ,ĂŵŝůƚŽŶ ƐƚĂŶĚƐ ŝŶ ĨƌŽŶƚ ŽĨ Ă ŶĞǁ ŚŽƵƐĞ ďĞŝŶŐ ĐŽŶƐƚƌƵĐƚĞĚ ŝŶ &ĂŝƌǀŝĞǁ ,ĞŝŐŚƚƐ͘ dŚĞ ĐŝƚLJ ŝƐ ĞdžƉĞƌŝĞŶĐŝŶŐ ĂŶŽƚŚĞƌ ƐƚƌŽŶŐ LJĞĂƌ ĨŽƌ ďƵŝůĚŝŶŐ ƉĞƌŵŝƚƐ͘

A33

ŽŶƐƚƌƵĐƟŽŶ ĐƌĞǁƐ ĂƌĞ ďƵŝůĚŝŶŐ ĂĐĐĞƐƐ ƌŽĂĚƐ ĨƌŽŵ WĂƌƐŽŶƐ /ŶĚƵƐƚƌŝĂů WĂƌŬ ƚŽ ƚŚĞ ƐŝƚĞ ŽĨ ƚŚĞ ŶĞǁ ^ĂƐŬĂƚĐŚĞǁĂŶ ,ŽƐƉŝƚĂůͬ/ŶƚĞŐƌĂƚĞĚ ŽƌƌĞĐƟŽŶĂů &ĂĐŝůŝƚLJ ƚŽ ďĞ ĐŽŶƐƚƌƵĐƚĞĚ ƐƚĂƌƟŶŐ ƚŚŝƐ ĨĂůů͘

North Battleford upbeat as oil edges closer Story and photos by Geoff Lee North Battleford – Low oil and gas prices are having a minimal effect on of the economy of the city of North Battleford thanks in part to an emerging heavy oil industry in the Battlefords region.

Capital construction projects and economic diversification driven by health care and agriculture continue to lead growth in the city while thermal oil production increases in the region.

“We’re well diversified. We have different sectors that are supporting our economy and our regional economy,” said North Battleford Mayor Ian Hamilton.

Hamilton says the impact of low oil prices on the local economy is offset by the expansion of

steam-assisted gravity drainage technology used to produce heavy oil in the region.

“I think it’s the fact that they are developing more of the SAGD extraction mechanisms in our area. They’re continuing. There’s no slowing up on that,” he said.

“What’s affecting jobs in other areas is lack of exploration.

“I have a son-in-law who works on a rig in the field. He hasn’t worked since December. That’s the impact that I’m sure is the result of cancelled exploration programs.

“They’re pretty significant I’m sure, but really other than that I would suggest that everything else is going along quite well in our area.”

Husky Energy began commercial steam opera-

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tions of its 10,000 barrels a day thermal project at nearby Rush Lake in May ahead of schedule.

That will be followed by their 10,000 bpd Edam East plant in the third quarter of 2016.

Husky’s 4,500 bpd Edam West is expected to be online in the fourth quarter of 2016 along with a 10,000 bpd Vawn thermal project.

Hamilton hopes that most of the full-time plant employees and their families will live in North Battleford and commute to work, but he said it’s too early to determine the full impact.

“It depends of what their family requirements are. Of course, North Battleford has the amenities, the schools, the recreational opportunities and the other services that are readily available,” said Hamilton. ɸ Page A34

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A34

PIPELINE NEWS August 2015

Great big new development Éş Page A33 â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s going to be a big impact. Thereâ&#x20AC;&#x2122;s 20 power engineering jobs at each of those sites and there are multiple sites. â&#x20AC;&#x153;They are pretty good paying jobs. There are going to have spinoff effects for our community for sure.â&#x20AC;?

Serafina Energy Ltd. is currently constructing a 6,000 bpd SAGD facility at Edam to come on stream in :Ä&#x17E;ŜŜĹ?ĨÄ&#x17E;Ć&#x152; EĹ?Ä&#x17E;Ć?Ĺ?ŜŏÍ&#x2022; Ä&#x161;Ĺ?Ć&#x152;Ä&#x17E;Ä?Ć&#x161;Ĺ˝Ć&#x152; ŽĨ Ä?ĆľĆ?Ĺ?ĹśÄ&#x17E;Ć?Ć? Ä&#x161;Ä&#x17E;Ç&#x20AC;Ä&#x17E;ĹŻĹ˝Ć&#x2030;ĹľÄ&#x17E;ĹśĆ&#x161; ĨŽĆ&#x152; Ć&#x161;Ĺ&#x161;Ä&#x17E; Ä?Ĺ?Ć&#x161;Ç&#x2021; ŽĨ EĹ˝Ć&#x152;Ć&#x161;Ĺ&#x161; Ä&#x201A;ĆŠĹŻÄ&#x17E;ĨŽĆ&#x152;Ä&#x161; 2016.

Meanwhile, Jenhopes to convince employees that will operate new heavy oil thermal plants being built in the region to relocate their families to the city. nifer Niesink, the cityâ&#x20AC;&#x2122;s director of economic development, is doing what she can to attract employees who will operate theses SAGD plants to relocate in the city. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re been working with these companies with their recruitment packages and sort of selling the lifestyle of North Battleford,â&#x20AC;? she said.

The city has stateof-the art recreation and performing arts facili

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bringing their families and that will spin off into more economic activity,â&#x20AC;? said Niesink. â&#x20AC;&#x153;I think weâ&#x20AC;&#x2122;ll just see growth in our community. I think weâ&#x20AC;&#x2122;ll see long-term, well-paying jobs and that just benefits everyone straight across.â&#x20AC;?

While the oil industry continues to develop, the largest sectors of the economy in the Battlefords are health care in the Prairie North Region and agriculture. â&#x20AC;&#x153;Health care here is huge and agriculture is still strong,â&#x20AC;? said Niesink. â&#x20AC;&#x153;The biggest employer in the region is the health region,â&#x20AC;? stressed Hamilton. â&#x20AC;&#x153;That isnâ&#x20AC;&#x2122;t impacted by any stretch by oil prices.â&#x20AC;?

The city is poised for an economic boom from an expected fall construction start on the Saskatchewan Hospital and Integrated Correctional Facility that will treat adult offenders with mental illnesses.

The Saskatchewan government has allocated $129 million of capital funding this year for ongoing prep work and construction with a 2018 completion target. â&#x20AC;&#x153;Thatâ&#x20AC;&#x2122;s a $300 million project, so itâ&#x20AC;&#x2122;s going to have a big impact on the community for two or three years for sure,â&#x20AC;? said Hamilton. â&#x20AC;&#x153;They will hit the ground this fall. Construction will start. Itâ&#x20AC;&#x2122;s a done deal and itâ&#x20AC;&#x2122;s going ahead. â&#x20AC;&#x153;With that much construction activity and the number of trades that will be on site on any one time, it

is certainly going to impact our local economy as well. â&#x20AC;&#x153;There will be a demand on housing. We experienced that when the Northland Power plant was being constructed.â&#x20AC;? â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;ve just launched a great big new development in Kildeer,â&#x20AC;? added Niesink with 42 residential lots ready for building in the northwest part of the city. â&#x20AC;&#x153;A private development is taking that on. â&#x20AC;&#x153;Thereâ&#x20AC;&#x2122;s a number of condos being built to meet the need for diversified housing. Weâ&#x20AC;&#x2122;ve seen a lot of renovations in the last year or two with other homes being updated. â&#x20AC;&#x153;Thatâ&#x20AC;&#x2122;s sort of the spinoff from those Husky plants and other things as well. â&#x20AC;&#x153;People come into town and either buy or built new or buy old ones and fix them up.

Youâ&#x20AC;&#x2122;ll just see it to continue to expand.â&#x20AC;?

The city has issued building permits totalling over $11.7 million up to end of May this year.

This compares to over $16.9 million for the same period a year ago, but many more projects are in the works.

Last year, the city set a record for building permits totalling nearly $56 million that could be challenged in 2015. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s eased up a little bit, but a lot of projects we are aware of that will come to fruition arenâ&#x20AC;&#x2122;t reflected in the numbers right now,â&#x20AC;? said Hamilton. ɸ Page A35

$11(5 %,7 6(59,&( 685)$&( %,7 5(17$/ 48$/,7< 5(581 5(7,3 +5 6(59,&(

Randy McCannell Manager (306) 485-9940

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PIPELINE NEWS August 2015 Éş Page A34 That includes the $1.7 million shell of a nine-unit strip mall currently being built in the southeast quadrant. â&#x20AC;&#x153;Thereâ&#x20AC;&#x2122;s going to be nine bays and thereâ&#x20AC;&#x2122;s going to be nine improvements within that shell which are going to be another $4 or $5 million that we donâ&#x20AC;&#x2122;t have knowledge of yet,â&#x20AC;? said Hamilton. â&#x20AC;&#x153;We donâ&#x20AC;&#x2122;t know what the developer has attained for leases.â&#x20AC;?

Work is also proceeding in the area on a 5,000 sq. ft. expansion of the Gold Eagle Casino. â&#x20AC;&#x153;We have a lot of interest in our old Maple Leaf plant which is exciting,â&#x20AC;? said Niesink. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s nice to see something go in there and help fill in that industrial park again.â&#x20AC;?

Across the North Saskatchewan River in Battleford, construction is taking place on a new Co-op gas bar, convenience store and car wash complex on Highway 4 south.

Across from the Co-op project, Bridge Road Developments Inc. is constructing a three-storey adult living apartment called Battleford West Place.

New residential houses will also be built in the coming months on new lots at Heritage Court with other signs of construction every which you look in the Battlefords.

Hamilton said all of this growth from building permits is in keeping with marketing the Battlefords as a destination for visitors and investors. â&#x20AC;&#x153;I think it shows a strong confidence in the economy of the region that developers are still coming to region to take advantage of opportunities that exist,â&#x20AC;? he said.

The city is also about to unveil some new economic priorities with a strong regional focus. â&#x20AC;&#x153;We think whatâ&#x20AC;&#x2122;s good for the region is good for the city,â&#x20AC;? said Niesink. â&#x20AC;&#x153;We are just in the stages of completing our regional opportunity plan thatâ&#x20AC;&#x2122;s going to help us refine and define those focuses. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re always after new construction, expanding local business.

As for what our new exact focuses are, weâ&#x20AC;&#x2122;ll know shortly.â&#x20AC;?

Oil and gas opportunities wonâ&#x20AC;&#x2122;t be high on the list, but interest

in the sector is strengthening. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s a positive impact, but itâ&#x20AC;&#x2122;s not altering the whole face of the city,â&#x20AC;? said Niesink with oil industry activity taking place well away from the city. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s not a boom or bust thing,â&#x20AC;? said Hamilton. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re more geared up to service the agriculture industry than we are oil and gas currently.â&#x20AC;? â&#x20AC;&#x153;As it does come a little closer, there will service industries establish themselves in North Battleford. â&#x20AC;&#x153;So far, weâ&#x20AC;&#x2122;re still an agriculture-based economy.â&#x20AC;?

The growing impact of the oil industry is relected in longer wait times at rail crossings in town as unit trains carrying crude oil from the Altex Energy Ltd.â&#x20AC;&#x2122;s transloading facility in Lashburn travel through the city. â&#x20AC;&#x153;Thereâ&#x20AC;&#x2122;s more oil tankers than they are grain cars these days,â&#x20AC;? said Hamilton. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s great. It shows a lot of economic activity in the area. We welcome it. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s just that itâ&#x20AC;&#x2122;s a little bit disruptive â&#x20AC;&#x201C; as trains get longer and longer and going

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through the city at peak times, it can get a little frustrating for traffic flow. â&#x20AC;&#x153;You deal with it on a day to day basis.

You learn to go different routes if you need be.â&#x20AC;?

The closure of the Paynton ferry has also

brought more oilfield traffic from Lloydminster through the Battlefords with opportunities for new oilfield service businesses. â&#x20AC;&#x153;Geographically, itâ&#x20AC;&#x2122;s in our favour for these places to relocate here.

Eventually, theyâ&#x20AC;&#x2122;ll see

thatâ&#x20AC;&#x2122;s it more convenient to maybe establish something here,â&#x20AC;? said Hamilton. â&#x20AC;&#x153;My understanding of the industry is time is money, and they really do value services on demand so the closer they are, the better.â&#x20AC;?

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A36

PIPELINE NEWS August 2015

Targetâ&#x20AC;&#x2122;s leg work paying off Bonnyville â&#x20AC;&#x201C; Networking and a diversified range of services are helping Target Safety Services to keep active on multiple fronts during the current economic downturn in the oilpatch.

Clint McKinlay, Targetâ&#x20AC;&#x2122;s general manager and Rob McGuire who manages business development, anchored a booth at the Bonnyville & District Oil and Gas Show held June 17-18 to generate new business.

Target has grown to provide safety training, technical rescue, industrial and health related service, safety equipment and corporate management systems for their core downstream oil and gas clients. â&#x20AC;&#x153;The sector we focus on has been fairly active this year. We are fortunate and very happy to be busy,â&#x20AC;? said Clint McKinlay, corporate general manager of Target Safety Services greeted new and McKinlay who is based at the head Ä&#x17E;Ç&#x2020;Ĺ?Ć?Ć&#x;ĹśĹ? Ä?ĹŻĹ?Ä&#x17E;ĹśĆ&#x161;Ć? Ä&#x201A;Ć&#x161; Ć&#x161;Ĺ&#x161;Ä&#x17E; ŽŜŜÇ&#x2021;Ç&#x20AC;Ĺ?ĹŻĹŻÄ&#x17E; Î&#x2DC; Ĺ?Ć?Ć&#x161;Ć&#x152;Ĺ?Ä?Ć&#x161; KĹ?ĹŻ Ä&#x201A;ĹśÄ&#x161; 'Ä&#x201A;Ć? ^Ĺ&#x161;Ĺ˝Ç Ĺ&#x161;Ä&#x17E;ĹŻÄ&#x161; Ĺ?Ĺś Ć&#x161;Ĺ&#x161;Ä&#x17E; ĹŻĹ˝Ä?Ä&#x201A;ĹŻ Ä&#x17E;ĹśĆ&#x161;Ä&#x17E;ŜŜĹ?Ä&#x201A;ĹŻ office in Lloydminster. Ä&#x17E;ĹśĆ&#x161;Ć&#x152;Ä&#x17E;Í&#x2DC; ĆľĆ&#x152;Ĺ?ĹśĹ? Ć&#x161;Ĺ&#x161;Ä&#x17E; Ć?Ĺ&#x161;Ĺ˝Ç dÄ&#x201A;Ć&#x152;Ĺ?Ä&#x17E;Ć&#x161; Ç Ä&#x201A;Ć? Ä?ĆľĆ?Ç&#x2021; Ä?ŽŜÄ&#x161;ĆľÄ?Ć&#x;ĹśĹ? Ä&#x201A; Ć&#x161;Ç Ĺ˝ Ç Ä&#x17E;Ä&#x17E;ĹŹ Ć?Ä&#x201A;ĨÄ&#x17E;Ć&#x161;Ç&#x2021; Ć&#x161;ĆľĆ&#x152;ĹśÄ&#x201A;Ć&#x152;ŽƾŜÄ&#x161; Ä&#x201A;Ć&#x161; â&#x20AC;&#x153;We didnâ&#x20AC;&#x2122;t put the sector we KĆ?ƾž KĹ?ĹŻ ^Ä&#x201A;ĹśÄ&#x161;Ć? Ĺ˝Ć&#x152;Ć&#x2030;Í&#x2DC; KĆ&#x152;Ĺ?ŽŜ ^ ' ĨÄ&#x201A;Ä?Ĺ?ĹŻĹ?Ć&#x161;Ç&#x2021; ŜŽĆ&#x152;Ć&#x161;Ĺ&#x161; ŽĨ ŽůÄ&#x161; >Ä&#x201A;ĹŹÄ&#x17E;Í&#x2DC; WĹ&#x161;Ĺ˝Ć&#x161;Ĺ˝Ć? Ä?Ç&#x2021; 'Ä&#x17E;Žč >Ä&#x17E;Ä&#x17E; are in by accident. We made sure we focus on downstream versus upstream, and at times like this it pays divi70 dends. â&#x20AC;&#x153;Obviously, when the price of oil is real high sometimes we pay the price of not chasing the drill bit, but at times like this it works out for us.â&#x20AC;?

Target has completed all kinds of turnarounds this year for light and heavy oil and pulp and paper clients in Western Canada.

On the downstream side, Target has conducted turnarounds at plants,

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upgraders, oil and gas batteries and steam-assisted gravity drainage or SAGD facilities.

The work is spread among Targetâ&#x20AC;&#x2122;s locations in Lloydminster, Bonnyville, Red Deer and Edmonton.

The week of the oil show kicked off a two-week safety turnaround project for Target at Osum Oil Corpâ&#x20AC;&#x2122;s Orion SAGD facility north of Cold Lake.

Target landed the work based on completing similar work for Shell Canada that sold Orion to Osum last summer. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s a small world â&#x20AC;&#x201C; some relationships that have been established at other companies where those individuals move into a site like Osum â&#x20AC;&#x201C;-so weâ&#x20AC;&#x2122;re happy to do work with them,â&#x20AC;? said McGuire.

The maintenance turnaround at Orion from June 14-28 was scheduled to clean, repair and inspect the facility to ensure optimum performance.

In a stakeholder update, Osum advised the turnaround would mean increased traffic activity at the site including large equipment mobilization on Highway 882, flaring during shutdown and start up and potentially an increase in noise.

McKinlay said business is good in the Bonnyville area, but not without the need to make adjustments due to the current environment of low oil and gas commodity prices. ɸ Page A37

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PIPELINE NEWS August 2015 Éş Page A36 â&#x20AC;&#x153;I think all areas have been affected in some way, shape or form, but, overall, at times like this you have to manage your costs and work through the difficult times to be ready for the good times,â&#x20AC;? he said.

McGuire attributes being busy to a corporate plan to diversify outside of the oil and gas sector while heeding the advice not to put all your eggs in one basket. â&#x20AC;&#x153;I guess in 2009 there was a lesson for us, too,â&#x20AC;? said McGuire. â&#x20AC;&#x153;We didnâ&#x20AC;&#x2122;t get hit hard but it still opened up some ideas what we needed to do as far as marketing our services, so branching out and becoming more of a one stop shop for our company for medical, safety and training.

The transition has been led by a management team headed by McKinlay and co-owner Craig Dore, president and CEO of Target Safety Services, in Red Deer. â&#x20AC;?Weâ&#x20AC;&#x2122;re also offering

our clients a lot more broader spectrum of what they can utilize us for. Itâ&#x20AC;&#x2122;s been really good,â&#x20AC;? said McGuire.

Target has recently launched a full range of industrial, professional and awareness courses for anyone to take online as it gears up for fall turnarounds. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;ll have lots of work in the Lloydminster area coming up this fall and typical day- today battery shutdowns and projects. It will be a busy fall for us for sure,â&#x20AC;? said McKinlay.

He noted that Husky Energy, however, has deferred its major fall turnaround which Target provides safety services for until 2016. â&#x20AC;&#x153;They postponed it to next year. Theyâ&#x20AC;&#x2122;ll do something small this year, but itâ&#x20AC;&#x2122;s nothing like the whole magnitude of the whole thing,â&#x20AC;? said McKinlay.

Target is coming off a banner year in 2014, when they opened their new Lloydminster head office following an expansion in Edmonton to tap into a new

A37

ZĹ˝Ä? DÄ?'ĆľĹ?Ć&#x152;Ä&#x17E; dÄ&#x201A;Ć&#x152;Ĺ?Ä&#x17E;Ć&#x161;Í&#x203A;Ć? Ä?ĆľĆ?Ĺ?ĹśÄ&#x17E;Ć?Ć? Ä&#x161;Ä&#x17E;Ç&#x20AC;Ä&#x17E;ĹŻĹ˝Ć&#x2030;ĹľÄ&#x17E;ĹśĆ&#x161; ĹľÄ&#x201A;ĹśÄ&#x201A;Ĺ?Ä&#x17E;Ć&#x152; Ä?Ä&#x201A;Ć?Ä&#x17E;Ä&#x161; Ä&#x201A;Ć&#x161; Ć&#x161;Ĺ&#x161;Ä&#x17E; >ĹŻĹ˝Ç&#x2021;Ä&#x161;ĹľĹ?ĹśĆ?Ć&#x161;Ä&#x17E;Ć&#x152; Ĺ&#x161;Ä&#x17E;Ä&#x201A;Ä&#x161; ŽĸÄ?Ä&#x17E; Ć?Ä&#x201A;Ĺ?Ä&#x161; Ć&#x161;Ĺ&#x161;Ä&#x17E; Ä?ŽžĆ&#x2030;Ä&#x201A;ĹśÇ&#x2021; Ä?ŽŜĆ&#x;ŜƾÄ&#x17E;Ć? Ć&#x161;Ĺ˝ Ä&#x161;Ĺ?Ç&#x20AC;Ä&#x17E;Ć&#x152;Ć?Ĺ?ĨÇ&#x2021; Ĺ?Ć&#x161;Ć? Ć?Ä&#x17E;Ć&#x152;Ç&#x20AC;Ĺ?Ä?Ä&#x17E;Ć? Ä&#x201A;ĹśÄ&#x161; Ć&#x2030;Ć&#x152;Ĺ˝Ä&#x161;ĆľÄ?Ć&#x161;Ć? Ä&#x201A;Ć? Ä&#x201A; ĹŻÄ&#x17E;Ć?Ć?ŽŜ ĹŻÄ&#x17E;Ä&#x201A;Ć&#x152;ĹśÄ&#x17E;Ä&#x161; ĨĆ&#x152;Žž Ć&#x161;Ĺ&#x161;Ä&#x17E; ĹŻÄ&#x201A;Ć?Ć&#x161; Ä&#x161;Ĺ˝Ç ĹśĆ&#x161;ĆľĆ&#x152;Ĺś Ĺ?Ĺś ώϏϏϴͲϏϾÍ&#x2DC;

growth market. â&#x20AC;&#x153;We are in Strathcona County and itâ&#x20AC;&#x2122;s near refinery row. Itâ&#x20AC;&#x2122;s an active market for us as well. Itâ&#x20AC;&#x2122;s where a lot of the main plays are,â&#x20AC;? said McKinlay. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;ve done work there successfully in the past, but in order to secure more, they wanted a local presence. so weâ&#x20AC;&#x2122;ve committed to doing that. So far itâ&#x20AC;&#x2122;s

PA TE

paying off dividends for us.â&#x20AC;?

Target is marketing its safety services and products to petrochemical and agricultural companies in the Edmonton and Fort Saskatchewan area.

The 2015 show attracted fewer registered visitors than it did two

yearsâ&#x20AC;&#x201C; the official count turned out to be 1,760 â&#x20AC;&#x201C;but McGuire said Target got the name recognition they were after. â&#x20AC;&#x153;I was at the Global Petroleum Show in Calgary last week â&#x20AC;&#x201C; same kind of thing, a little bit slower, but I think the key focus with our

group is weâ&#x20AC;&#x2122;re getting a lot of attention. â&#x20AC;&#x153;Our name is still out there,â&#x20AC;? he said. â&#x20AC;&#x153;Every time you can promote the local community and get your name out there â&#x20AC;&#x201C; especially in a downturn â&#x20AC;&#x201C; thatâ&#x20AC;&#x2122;s your focus â&#x20AC;&#x201C; marketing and more sales and representation.â&#x20AC;?

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A39

Balon opens sales valve in Bonnyville

By Geoff Lee Bonnyville – There’s no verb in Balon Valves so the company name doesn’t quite say it enough for customers to intuit that it manufactures valves for the oil and gas industry.

Fortunately, Balon sales reps such as Darwin Rye from Kerrobert can quickly fill in the blanks as he did for Pipeline News at the Bonnyville & District Oil and Gas Show held at the Centennial Centre on June 17-18.

“We sell ball valves, needle valves and check valves that are manufactured in Oklahoma City,” explained Rye in just 15 words on the first day of the show at the Balon booth.

“We are the manufacturers and our distributors are the supply stores such as Apex, DistributionNOW and Baron Oilfield Supply. They’re our four distributors in Canada.”

The valves are used on wellheads, tanks, trucks, facilities, treaters, water injection and gas gathering systems among many energy industry applications.

The U.S. family-owned company is celebrating its 50th anniversary this year as a maker of specialized valves for the oil and gas industry out a 1.4 million sq. ft. facility.

Balon has been at all three oil shows in Bonnyville dating back to the first one in 2011 with the purpose of growing sales in the region.

“We want to increase our business levels in this area with our products and it’s coming along well,” said Rye. “This is always a good time for us. We get a lot

of good response from this area and other areas so it’s an excellent thing for us to come to.”

Balon was one of many companies to come to Bonnyville for the opportunity to pitch their products and services to five regional heavy oil producers in the oilmen’s room for potential sales contracts.

Canadian Natural Resources, Osum Oil Sands Corp, Devon, Husky Energy and Imperial Oil participated in the oilmen’s room referred to as a reverse networking opportunity.

Rye was primed to make a pitch for Balon on the final day along with his regional manager Shane Wold and he didn’t mind rehearsing it out loud.

“We are 100 per cent North American made, no offshore product in our valves and we’ve never had an accident with a valve that has caused a human injury in the 50 years we’ve been in business,” repeated Rye. He noted that sales have also been good lately for Balon in the Kerrobert and Kindersley area.

“We’re busy doing a lot right now. It’s still fairly busy. It’s light oil down there, so they’re getting good money for it and lifting costs are low, so they are still fairly active,” said Rye. As an area sales rep for Balon, Rye spends most of his time on customer service and providing product solutions.

“I just service the companies and make sure the product is working properly and help them size and pick out the right trim for all their products, and work with the supply stores that sell our products,” he explained.

Darwin Rye, a sales rep for Balon Valves in Kerrobert holds a 2-inch lever operated ball valve at the company booth at the Bonnyville & District Oil and Gas Show.

WŚŽƚŽ ďLJ 'ĞŽī >ĞĞ

A40

PIPELINE NEWS August 2015

Argus pitches digital switches

Ĺ˝Ä? WĹ˝Ĺ?Ć&#x161;Ć&#x152;Ä&#x201A;Ć?Í&#x2022; Ä&#x201A; Ć&#x161;Ä&#x17E;Ä?Ĺ&#x161;ĹśĹ?Ä?Ä&#x201A;ĹŻ Ć?Ä&#x201A;ĹŻÄ&#x17E;Ć? Ć&#x152;Ä&#x17E;Ć&#x2030; ĨŽĆ&#x152; Ć&#x152;Ĺ?ĆľĆ? DÄ&#x201A;Ä?Ĺ&#x161;Ĺ?ĹśÄ&#x17E; Ć&#x161;Ä&#x201A;ĹŻĹŹĆ? Ç Ĺ?Ć&#x161;Ĺ&#x161; Ä&#x201A; Ć&#x2030;Ĺ˝Ć&#x161;Ä&#x17E;ĹśĆ&#x;Ä&#x201A;ĹŻ Ä?ĆľĆ?Ć&#x161;ŽžÄ&#x17E;Ć&#x152; Ä&#x201A;Ć&#x161; Ć&#x161;Ĺ&#x161;Ä&#x17E; ŽŜŜÄ&#x17E;Ç&#x2021;Ç&#x20AC;Ĺ?ĹŻĹŻÄ&#x17E; Ĺ˝Ĺ?ĹŻ Ć?Ĺ&#x161;Ĺ˝Ç Í&#x2DC;

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Bonnyville â&#x20AC;&#x201C; Argus Machine Co. Ltd. came to the Bonnyville & District Oil and Gas Show hoping to upsell their existing heavy oil customers on a new digital pressure switch.

Digital and mechanical pressure switches are safety devices for effective on/ off well control for oil and gas applications. â&#x20AC;&#x153;On every well you see in the Bonnyville area and the Lloydminster area, we are about 80 per cent of the market,â&#x20AC;? said Bob Poitras, a technical sales rep for Argus, during the show held June 17-18. â&#x20AC;&#x153;On every well you will see a pressure switch that protects it from high pressure. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;ve been doing this for about twenty years now and there are past devices that have done the same job; we just updated them.

Weâ&#x20AC;&#x2122;re updated. We kept on making the changes to make it a lot better.â&#x20AC;?

The digital pressure switch is one of the latest products that Argus manufactures and distributes from its base in Edmonton/Nisku for pipeline pigging systems to clean and maintain flowlines. â&#x20AC;&#x153;Pigging will be done on condensate, water and paraffin,â&#x20AC;? said Poitras.

Argus supplies everything from pipeline pig valves, pressure switches and ESD or emergency shutdown packages to their innovative automatic multi pig launcher.

The Argus multi pig launcher incorporates pipeline pig valves and a programmable timer.

Argus set up a booth at the show hoping to gain more exposure for their products and services in the region. â&#x20AC;&#x153;This is a pretty strong area for us and for our customers to come in a look at where Argus is going with thisâ&#x20AC;&#x201D;just to be a presence here,â&#x20AC;? said Poitras beside a digital pressure switch display. â&#x20AC;&#x153;This is a pressure switch for SAGD â&#x20AC;&#x201C; so high temperature â&#x20AC;&#x201C; so weâ&#x20AC;&#x2122;re going to have it here just for show.â&#x20AC;?

Andrew Goselwitz another company technical sales rep on hand added, â&#x20AC;&#x153;People know about Argus products that are manufactured, but we want to brand the name a little bit more in this area.â&#x20AC;?

The company has an extensive list of products and services on its website but Poitras provided an abbreviated snapshot of what they do for Pipeline News. â&#x20AC;&#x153;We do protection code safety equipment like a pressure switch for high and low shutdowns,â&#x20AC;? he said. â&#x20AC;&#x153;For emergency shutdowns, we do pigging systems for flushing condensate. â&#x20AC;&#x153;We do digital switches, so from the mechanical pressure switch that shows a high pressure shutdown, weâ&#x20AC;&#x2122;ll have digital â&#x20AC;&#x201C; so we have a 4 (port) to 20 (amp) unit. ɸ Page A41

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PIPELINE NEWS August 2015 Éş Page A40 â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s got contacts in it â&#x20AC;&#x201C; so high and low (points) but it has a 4 to 20 so you can monitor the pressure on the well. â&#x20AC;&#x153;We monitor the well pressure as well as shut it down.â&#x20AC;?

While a digital pressure switch is substantially more costly than a mechanical one there is no vibration issue to worry about with the digital version. â&#x20AC;&#x153;In certain applications you need a digital switch,â&#x20AC;? said Poitras. â&#x20AC;&#x153;You need a high and a low temp point.

The mechanical has one high and a very low differential where it comes back on automatically. â&#x20AC;&#x153;With the digital one, we can have multiple settings, so you can do multiple functions with the thing. â&#x20AC;&#x153;In the long haul, you would save money if you need the application. If you have vibration or any pulsation problems, the digital switch is probably the way to go.â&#x20AC;?

Pressure switches attach to wellhead gas and oil flowlines. Every PC pump and pumpjack also has one or two pressure switches for redundancy.

Goselwitz said the digital pressure switch adds value since it includes a gauge, a switch and a transmitter. â&#x20AC;&#x153;So youâ&#x20AC;&#x2122;re providing three devices into one. Itâ&#x20AC;&#x2122;s cutting costs for the consumer, for your customer just to make things more efficient for them,â&#x20AC;? said Goselwitz. â&#x20AC;&#x153;Also they can sit in the control room and they can view that device and they donâ&#x20AC;&#x2122;t

have guys or operators in trucks driving around checking all the well sites.â&#x20AC;?

Goselwitz said it is just a matter of time until sales of the new switch pick up as itâ&#x20AC;&#x2122;s a high temperature pressure switch suited for SAGD heavy oil production in the region. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s getting more and more popular. Weâ&#x20AC;&#x2122;re seeing it going in different areas. It just takes time,â&#x20AC;? he said. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s something new so anything thatâ&#x20AC;&#x2122;s new people donâ&#x20AC;&#x2122;t want to jump on right away. It takes a little bit of time to get it in there. â&#x20AC;&#x153;Once people start using it and seeing it, theyâ&#x20AC;&#x2122;ll start taking off. â&#x20AC;&#x153;It costs considerably more than just a single device, but youâ&#x20AC;&#x2122;re getting three devices into one so itâ&#x20AC;&#x2122;s actually saving them money.â&#x20AC;?

As for the effect of the downturn in commodity prices on related sales, Poitras said, â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s slowed down but we are on the maintenance side of it because youâ&#x20AC;&#x2122;ve got to have a switch on the well. â&#x20AC;&#x153;Things fail. There are older devices, and we have to replace them.â&#x20AC;?

For his part, Goselwitz believes this is the right product in the downturn as automation can save companies money. â&#x20AC;&#x153;Even our automated multi pig launcher saves time and money because in areas where they have to helicopter out, they can just send a signal through SCADA and they send a pig that way,â&#x20AC;? he said. â&#x20AC;&#x153;So definitely automation is the future.â&#x20AC;?

A41

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A42

PIPELINE NEWS August 2015

Canline can pull a pipe into a pipe Bonnyville – Canline Pipeline Solutions has the ability to rehabilitate old pipelines with new pipelines at up to half the cost of traditional open ditch installations.

That realization left many of those who learned about Canline’s competitive advantage at the Bonnyville & District Oil and Gas Show, asking themselves why they didn’t think of it first.

“We have some cases where it’s saved up to 50 per cent versus open ditch installation,” said Larry Biever, Canline’s general manager.

Biever spoke about pulling new pipe into old pipe from his booth during the oil show held June 17-18 at the Bonnyville Centennial Centre.

“A lot of people didn’t know you could rehabilitate an old pipeline with a new pipeline and only have ground disturbance every 700 metres or more,” he said.

Canline Pipeline is an installation company for non-metallic pipelines focusing on composite pipe and high density polyethylene with operations based in Breton, Alta.

Installations are made using brand name products such as FlexPipe, FlexCord, FlexPipe HT, FlexSteel, Thermoflex, Fiberspar, HDPE Pipe and stainless steel.

“The primary two products we work with would be FlexPipe and FlexSteel and we install them either in open ditch or we can rehabilitate an oil pipeline where we will pull a new pipeline inside of the old one,” said Biever.

“So we pull for example, a 4-inch flex pipe inside of a 6-inch steel line and in doing so, we can pull segments of 700 metres up to 2,500 metres in one continuous pull.

“We’ve installed pipelines as long as 20 to 30 kilometres. We just do it one segment at a time.

“The advantage of that is rather than open ditching all 20 kilometres you just have a bell hole every kilometre.”

The sections are joined together with a pipe to pipe connector for nonmetallic pipelines without the need for welding.

The company has installed more than 1,500 kilometres of pipelines since its inception in 2003.

Canline Pipeline, Insulation Snakes, and Gazelle’s Oilfield Service are part of the Gazelle’s group of companies formed in 1985 with a manufacturing facility in Casper, Wy. The company has its sales office in Calgary and generated approximately $22 million in revenue in 2014.

The business was created when Gazelle’s Oilfield came up with an innovative procedure for using 1-inch and 1-1/2 inch stainless steel tubing as a liner inside a failed 2-inch pipeline in waterflood injection systems.

The rest is history that is still in the making.

The company has gone on to install pipelines for companies such as Canadian Natural Resources, Husky, Encana, Cenovus, Apache – all the majors and a lot of the mid-size and juniors according to Biever.

“It’s all underground pipelines or flow lines for water or oil emulsion or whatever else could be flowing through – gas,” he said.

Canline Pipeline has installed pipelines for a variety of applications from Fort St. John in British Columbia to Virden, Man. and for clients in the United States.

“We have done a couple of projects as far east as Toronto,” said Biever, who

describes business as being moderately busy during the downturn in oil and gas prices.

The ability of Canline Pipeline to rehabilitate old pipelines cost effectively has been a major selling point for the company in the current economic environment.

“We show up and we can rehabilitate an eight kilometre pipeline with four men and a couple of pieces of equipment,” said Biever.

“We use the old one as conduit. Another nice thing is, if the new pipeline is inside of the old steel conduit, it is also now protected from accidental line strikes.

“Your 4-inch pipeline is inside of your 6-inch, so if somebody has an incident or it’s not located properly or something hits the carrier 6-inch steel pipe, it’s not likely going to damage the inside of it.”

Canline Pipeline carries three sizes of mobile liner units equipped with low pressure rubber tracks for minimal ground disturbance along with self-loading reel trailers, to get the job done.

“We have a pulling unit that has a rope which hooks onto the pipe, at the far end of the pipeline and we pull the reel towards us,” explained Biever.

“If there’s enough room to pull the pipe-topipe connector that joins two reels – if there’s enough clearance inside the pipeline, we will install a fitting and continue pulling so it’s one continuous segment from A to B.” The rope used for pulling is a torque-free 12-strand single braid nylon cable.

Canline Pipeline also has a fleet of dozers, graders, track Hoes, hackhoes, welders, picker trucks, A-frames, crimp kits, and more at the Breton base. dŚŝƐ ϰͲŝŶĐŚ ŇĞdž ƉŝƉĞ ƐĂŵƉůĞ ŝƐ ƚLJƉŝĐĂů ŽĨ ǁŚĂƚ ĂŶůŝŶĞ WŝƉĞůŝŶĞ ^ŽůƵƟŽŶƐ ƵƐĞƐ ǁŚĞŶ ƉƵůůŝŶŐ ŶĞǁ ƉŝƉĞ ŝŶƐŝĚĞ ŽĨ ŽůĚ ƉŝƉĞ ƵƐŝŶŐ ĞŶǀŝƌŽŶŵĞŶƚĂůůLJ ĨƌŝĞŶĚůLJ ĞƋƵŝƉŵĞŶƚ ĂŶĚ ƚĞĐŚŶŝƋƵĞƐ ǁŝƚŚŽƵƚ ŽƉĞŶ ĚŝƚĐŚŝŶŐ Žƌ ǁĞůĚŝŶŐ ŽĨ ũŽŝŶƚƐ͘ WŚŽƚŽ ďLJ 'ĞŽī >ĞĞ

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A43

&ULPWHFK Ă LHV Ă DJ LQ %RQQ\YLOOH Â&#x201E; By Geoff Lee Bonnyville â&#x20AC;&#x201C; Word of mouth led Crimtech Services Ltd. from Red Deer to set a up a booth for the first time at the Bonnyville & District Oil and Gas Show. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s the first time because of comments from some of the exhibitors last year at the Lloydminster show,â&#x20AC;? said Michael Faubert who handles Calgary sales. â&#x20AC;&#x153;So we thought this would be a good opportunity for us to expand a little bit and get our name out there in the marketplace.â&#x20AC;?

The company is hoping to increase sales in the Bonnyville region where they do a lot of work for Imperial Oil near Cold Lake and have a contract in place with them. â&#x20AC;&#x153;We already work in the Lloyd area a lot and weâ&#x20AC;&#x2122;ve got customers up in the oilsands at Christina Lake and Foster Creek that we already supply packages to,â&#x20AC;? said Faubert. â&#x20AC;&#x153;So we just want to have a presence here to put our name forward more.â&#x20AC;?

Faubert and company president Craig Nykyforuk handed out reams of marketing information about the company during the show held June 17-18 at the Bonnyville Centennial Centre Crimtechâ&#x20AC;&#x2122;s booth put the spotlight on their one stop approach to engineering and fabrication with the

focus on building heavy oil products such as separators, and knockouts, water treatment skids and pipe rack modules. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re a fabricator of process equipment, so we do skidded packages and modules. We do structural piping and vessel work and wellsite packages for heavy oil,â&#x20AC;? explained Faubert. â&#x20AC;&#x153;We do a lot of pipeline work and SAGD projects, gas plants, oil batteries that sort of thing. We also have an engineering drafting group. â&#x20AC;&#x153;We do a lot of drawing upgrades â&#x20AC;&#x201C; redline as-built drawings and such.â&#x20AC;?

Crimtech also fabricates pipe spooling, wellsite equipment, structural assembly and quality assurance from their plant in Red Deer.

Crimtech recently completed four instrument shelter buildings for Enbridgeâ&#x20AC;&#x2122;s South Edmonton Terminal expansion project providing the structural engineering, design and all aspects of the fabrication.

As for the impact of the downturn Faubert said, â&#x20AC;&#x153;Things were a little bit slow for us, but itâ&#x20AC;&#x2122;s picked up a little bit in the last month and a bit.

Weâ&#x20AC;&#x2122;ve got orders going through the shop. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s very competitive out there.

Weâ&#x20AC;&#x2122;ve got a lot of bids out. Weâ&#x20AC;&#x2122;re just trying to bring in some more business. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re trying to help our customers with cost effective solutions to

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their applications in our design and fabrication of products.â&#x20AC;?

Faubert was also primed to pitch Crimtechâ&#x20AC;&#x2122;s products and services to five area producers who sponsored the popular oilmenâ&#x20AC;&#x2122;s room exclusive to exhibitors. â&#x20AC;&#x153;Iâ&#x20AC;&#x2122;m going to be having my ses-

sion in a little while to talk with the sponsors,â&#x20AC;? he said on the opening day. â&#x20AC;&#x153;Thatâ&#x20AC;&#x2122;s just an added benefit where we can sit face to face with the sponsors and get our name forward and let them know a little more about what we do and what weâ&#x20AC;&#x2122;ve got to offer them.â&#x20AC;?

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A44

PIPELINE NEWS August 2015

Absolute converts waste into dollars Bonnyville â&#x20AC;&#x201C; One manâ&#x20AC;&#x2122;s trash is another manâ&#x20AC;&#x2122;s treasure.

Thatâ&#x20AC;&#x2122;s the thinking behind the success of Absolute Environmental Waste Management Inc. that profits by operating Class 1A deep injection wells for growing volumes of oilfield and industrial liquid waste.

Current clients include oil and gas companies, pharmaceutical companies, chemical companies, and other commercial and production industries â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re in the process of expanding right now. Weâ&#x20AC;&#x2122;ve actually got two wells on site,â&#x20AC;? said Frank Maddock, a sales rep for the company that attended the Bonnyville & District Oil and Gas Show June 17-18. â&#x20AC;&#x153;One is incorporated into our present licenced facility and we are working with AER (Alberta Energy Regulator) right now to incorporate the second

well which should probably take six to eight months. â&#x20AC;&#x153;Currently, we only have one that we are using. â&#x20AC;&#x153; The Absolute Environmental facility located in northeast Edmonton handles oilfield wastes such as saline fluids, boiler blowdown water, and liquid fraction of drilling mud and acid and corrosion inhibitors. â&#x20AC;&#x153;We probably do about 1,000 cubes a day. The environmental waste management business is a growing business and weâ&#x20AC;&#x2122;re growing along with the business right now,â&#x20AC;? said Maddock on the final day of the show inside Centennial Centre in Bonnyville.

Absolute Environmental came to the show on a mission to generate new business and to promote their services. â&#x20AC;&#x153;We just want to touch bases with some our old customers and

make some new customers â&#x20AC;&#x201C; and business as usual kind of thing,â&#x20AC;? said Maddock â&#x20AC;&#x153;Our clients are primarily oil and gas producers in Bonnyville, however, in Edmonton we do have some industrial clients too, primarily chemical companies.â&#x20AC;?

As for what makes Absolute Environmental stand out from the competition Maddock said, â&#x20AC;&#x153;We are generally lower priced that than the Tervitas and the Newaltas, so we can offset trucking costs. â&#x20AC;&#x153;Especially these days with the price of oil, we can save companies some money. â&#x20AC;&#x153;We have clients from the Fort McMurray area, Bonnyville and as far south as Drayton Valley, so itâ&#x20AC;&#x2122;s a pretty wide spectrum of areas where we can offer reasonably-priced services.â&#x20AC;?

Pricing is based by the cube with prices varying on the waste type.

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â&#x20AC;&#x153;If itâ&#x20AC;&#x2122;s hazardous waste, obviously itâ&#x20AC;&#x2122;s priced a little higher. If itâ&#x20AC;&#x2122;s non-regular waste, itâ&#x20AC;&#x2122;s significantly lower.

Everythingâ&#x20AC;&#x2122;s going down the wells,â&#x20AC;? said Maddock.

Waste is injected into the Nisku formation about a mile below the surface.

Asked what kind of reaction the company was getting at the show Maddock said, â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;ve met a lot existing clients that we had a chance to meet face to face with again and weâ&#x20AC;&#x2122;ve made some progress with some new companies.â&#x20AC;?

Maddock wanted everyone to know that Absolute Environmental has the ability to accept wide variety of both oilfield and Industrial waste at its facility.

Albertaâ&#x20AC;&#x2122;s Directive 51 lists of the guidelines and restrictions on what can be injected into a class 1A well (the highest regulatory classifications for disposal wells in the province).

The company also has onsite laboratory to perform an on the spot analysis for their clientsâ&#x20AC;&#x2122; waste streams and other equipment including tanks and a couple of loaders with all waste trucked in. â&#x20AC;&#x153;A company brings trucks with waste into our facility, then itâ&#x20AC;&#x2122;s pumped into a tank, and from the tank it goes into the injection well,â&#x20AC;? said Maddock about the process.

&Ć&#x152;Ä&#x201A;Ŝŏ DÄ&#x201A;Ä&#x161;Ä&#x161;Ĺ˝Ä?ĹŹÍ&#x2022; Ä&#x201A; Ć?Ä&#x201A;ĹŻÄ&#x17E;Ć? Ć&#x152;Ä&#x17E;Ć&#x2030;Ć&#x152;Ä&#x17E;Ć?Ä&#x17E;ĹśĆ&#x161;Ä&#x201A;Ć&#x;Ç&#x20AC;Ä&#x17E; ĨŽĆ&#x152; Ä?Ć?ŽůƾĆ&#x161;Ä&#x17E; ĹśÇ&#x20AC;Ĺ?Ć&#x152;ŽŜžÄ&#x17E;ĹśĆ&#x161;Ä&#x201A;ĹŻ tÄ&#x201A;Ć?Ć&#x161;Ä&#x17E; DÄ&#x201A;ĹśÄ&#x201A;Ĺ?Ä&#x17E;ĹľÄ&#x17E;ĹśĆ&#x161; /ĹśÄ?Í&#x2DC;Í&#x2022; Ç Ä&#x201A;Ć? Ä&#x17E;Ä&#x201A;Ĺ?Ä&#x17E;Ć&#x152; Ć&#x161;Ĺ˝ Ć&#x161;Ä&#x201A;ĹŻĹŹ Ä&#x201A;Ä?ŽƾĆ&#x161; Ĺ&#x161;Ĺ?Ć? Ä?ŽžĆ&#x2030;Ä&#x201A;ĹśÇ&#x2021;Í&#x203A;Ć? Ç Ä&#x201A;Ć?Ć&#x161;Ä&#x17E; Ä&#x161;Ĺ?Ć?Ć&#x2030;Ĺ˝Ć?Ä&#x201A;ĹŻ Ć?Ä&#x17E;Ć&#x152;Ç&#x20AC;Ĺ?Ä?Ä&#x17E;Ć? Ć&#x161;Ĺ˝ Ç&#x20AC;Ĺ?Ć?Ĺ?Ć&#x161;Ĺ˝Ć&#x152;Ć? Ä&#x201A;Ć&#x161; Ć&#x161;Ĺ&#x161;Ä&#x17E; ŽŜŜÇ&#x2021;Ç&#x20AC;Ĺ?ĹŻĹŻÄ&#x17E; Ĺ˝Ĺ?ĹŻ Ć?Ĺ&#x161;Ĺ˝Ç Ĺ&#x161;Ä&#x17E;ĹŻÄ&#x161; Ä&#x201A;Ć&#x161; Ć&#x161;Ĺ&#x161;Ä&#x17E; Ä&#x17E;ĹśĆ&#x161;Ä&#x17E;ŜŜĹ?Ä&#x201A;ĹŻ Ä&#x17E;ĹśĆ&#x161;Ć&#x152;Ä&#x17E;Í&#x2DC; Ä?Ć?ŽůƾĆ&#x161;Ä&#x17E; Ĺ&#x161;Ä&#x201A;Ć? Ä&#x17E;Ć?Ć&#x161;Ä&#x201A;Ä?ĹŻĹ?Ć?Ĺ&#x161;Ä&#x17E;Ä&#x161; Ĺ˝Ĺ?ĹŻÄŽÄ&#x17E;ĹŻÄ&#x161; Ä?ĹŻĹ?Ä&#x17E;ĹśĆ&#x161;Ć? Ĺ?Ĺś Ć&#x161;Ĺ&#x161;Ä&#x17E; Ć&#x152;Ä&#x17E;Ĺ?Ĺ?ŽŜÍ&#x2DC; WĹ&#x161;Ĺ˝Ć&#x161;Ĺ˝ Ä?Ç&#x2021; 'Ä&#x17E;Žč >Ä&#x17E;Ä&#x17E;

â&#x20AC;&#x153;The well is under vacuum, so it sucks approximately a cube a minute.â&#x20AC;?

Absoluteâ&#x20AC;&#x2122;s facility sits of the site of the former Celanese Canada petrochemical plant.

Absolute bought the property in 2008 that came with one disposal well. â&#x20AC;&#x153;We had to make some licensing changes through Alberta Environment in order to take

third party waste,â&#x20AC;? said Maddock.

Both of their wells have an expected lifespan of about 25 years with new facilities on the drawing board.

The companyâ&#x20AC;&#x2122;s long term expansion plans include building a treatment and recycling facility, a sludge facility, a truck wash, rail off loading, a fueling station and a solid waste disposal cavern.

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PIPELINE NEWS August 2015

A45

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By Geoff Lee Bonnyville – It was a no-brainer for Camex Equipment Sales and Rentals Inc., to exhibit a vacuum truck and a crude oil hauling truck at the Bonnyville & District Oil and Gas Show.

The Nisku-based company manufactures high quality custom built oilfield truck and trailers with crude haulers, vac trucks and water trucks among the best sellers in the Bonnyville region.

“We do have a very strong presence here in Bonnyville, so strong, that a lot of people ask us where our office is,” said Garrett Jong, an assistant rental manager who explained his company’s goal at the show held June 17-18.

“We’re here to check in with the clients and see how business is doing up here and of course meet up with new clientele.”

“Up here, it’s mainly vacuum trucks and water trucks. We’ve got companies straight up north here at Cenovus and other guys just on the rigs running around.”

“There’s lot of rigs out here by Cold Lake, so they’re just based out of here and run out to Cold Lake.”

In the oilfield transportation market, Camex also manufactures winch trucks, fuel trucks and picker trucks and is the number one buyer of Kenworth trucks and Doepker trailers in Western Canada.

Camex has two manufacturing facilities in Nisku, one for vacuum trucks and one for winch truck, pickers and Texas beds. They also have several yards.

The company completed a 47,000 sq. ft. expansion of its vacuum industrial products manufacturing facility in July, 2014.

The company has grown to stock one of the most extensive lines of oilfield and construction

equipment in Western Canada.

Jong described overall sales as being “good for the most part” in 2015.

“We’ve definitely seen a little bit of a slowdown with the oilfield side of things, but as for the con-

struction side with the support equipment, it hasn’t really slowed down for us at all,” he noted.

Last year, Camex sold a total of 120 vac trucks worldwide and about 40 in 2015 up to the oil show held at the Bonnyville Centennial Centre.

Camex also rents new and used trucks, trailers and construction equipment and has a rent to purchase option that has boosted business during the current slowdown in the oilpatch.

“We do have a rent-to-purchase program. A lot of companies go that route. It’s a very smart decision for them,” said Jong.

“They get the extra equipment for the jobs that they have. The future can be a little bit uncertain but at least they are sinking a lot of money towards purchasing the truck.”

Lessons learned from the last downturn in the oilfield, to diversity into sales of construction and support equipment and rental purchase programs are paying dividends during the current downturn.

“This time around it’s really helped us. It hasn’t made it as hard on us because of the fact our construction side of things. We have sold a lot of construction support equipment,” said Jong.

Construction support equipment includes loaders compactors, cranes and support equipment such as compressors, generators and heaters.

Camex has built an inventory of over 900 new, used, and refurbished oilfield transportation and construction equipment.

“We’re all over the world. We are the largest 'ĂƌƌĞƩ :ŽŶŐ͕ ĂŶ ĂƐƐŝƐƚĂŶƚ ƌĞŶƚĂů ŵĂŶĂŐĞƌ ĨŽƌ ĂŵĞdž oilfield dealership in North America and we deal ƋƵŝƉŵĞŶƚ ^ĂůĞƐ ĂŶĚ ZĞŶƚĂůƐ /ŶĐ͘ ŝŶ EŝƐŬƵ ƐŚŽǁƐ Žī Ă all around the world. Just yesterday, we had some ϮϬϭϱ <ĞŶǁŽƌƚŚ ĐƌƵĚĞ ŽŝůͲŚĂƵůŝŶŐ ƚƌƵĐŬ ŵĂĚĞ Ăƚ ƚŚĞ ĐŽŵͲ equipment leave for Pakistan,” said Jong. ƉĂŶLJ͛Ɛ ƉůĂŶƚ ŝŶ EŝƐŬƵ͘ dŚĞ ƚƌƵĐŬ ĚƌĞǁ Ă ĨĂŝƌ ƐŚĂƌĞ ŽĨ ĂƩĞŶͲ “We deal with Australia and Mexico. ƟŽŶ Ăƚ ƚŚĞ ŽŶŶLJǀŝůůĞ Kŝů ĂŶĚ 'ĂƐ ƐŚŽǁ ŚĞůĚ :ƵŶĞ ϭϳͲϭϴ “With the way the dollar is right now, our sales ǁŝƚŚ Ă ƌĞŶƚͲƚŽͲƉƵƌĐŚĂƐĞ ŽƉƟŽŶ͘ WŚŽƚŽ ďLJ 'ĞŽī >ĞĞ to the United States are very strong.”

A46

PIPELINE NEWS August 2015

Sunrise ramps up, upgrader down

RESOURCE *XĂ&#x2014;GH Quality

LAMICOIDS

Calgary â&#x20AC;&#x201C;Husky Energy is continuing to ramp up production at the Sunrise Energy project in northeast Alberta.

Sunrise began producing bitumen in mid-March 2015.

Twenty-five well pairs are now on production, with steaming under way on 43 of 55 well pairs.

The company

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reported strong reservoir and facility performance have contributed to increasing production volumes averaging 5,000-5,500 barrels per day by the beginning of July, ahead of plan. â&#x20AC;&#x153;We continue to follow a steady, deliberate timetable as we increase production at Sunrise, and this approach is delivering better than expected results,â&#x20AC;? said CEO Asim Ghosh in a July 6 update. â&#x20AC;&#x153;Sunrise is one of many low sustaining capital projects in our near-term portfolio that is designed to provide increasing value through and beyond the current low oil price environment.â&#x20AC;?

Sunrise production is expected to increase to full capacity of about 60,000 bpd (30,000 net to Husky) around the end of 2016.

The project will help Husky to add approximately 85,000 bpd of new production by the end of 2016,

a portion of which is anticipated to offset natural declines across its overall portfolio.

Husky is the operator of Sunrise, which is located approximately 60 kilometres northeast of Fort McMurray.

The company has a 50 percent working interest in the steamassisted gravity drainage project with BP, which operates the jointly-owned BPHusky Toledo refinery.

Bitumen from Sunrise can be processed at the Toledo refinery.

Lloydminster Upgrader in shutdown mode Husky announced on July 3 that operations at the Lloydminster upgrader will be temporary shutdown for six to eight weeks.

Unplanned maintenance activity is underway and will address repairs to the facilityâ&#x20AC;&#x2122;s coke drums.

Upstream heavy oil production is not expected to be affected by the temporary shutdown of operations.

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PIPELINE NEWS August 2015

4X4 MSRP $78,669

15SD96

2015 FORD F-350 LARIAT SRW EMPLOYEE $

PRICING

4X4 MSRP $78,169

15SD73

2015 FORD F-350 LARIAT SRW EMPLOYEE $

PRICING

61,664

4X4 MSRP $66,339

15SD72

2015 FORD F250 LARIAT SRW EMPLOYEE $

PRICING

53,469

4X4 MSRP $63,759

15SD108

2015 FORD F250 XLT CREW PU SRW EMPLOYEE $

PRICING

51,250

15SD102

2015 FORD F-350 LARIAT SRW EMPLOYEE $

PRICING

61,747

15LT271

2015 FORD F-150 LARIAT EMPLOYEE $

PRICING

50,513

15LT268

2015 FORD F-150 LARIAT EMPLOYEE $

PRICING

51,860

4X4 MSRP $63,649

15LT244

2015 FORD F-150 LARIAT EMPLOYEE $

PRICING

52,675

15LT176

2015 FORD F150 PLATINUM EMPLOYEE $

PRICING

60,331

2015 FORD F-150 XLT EMPLOYEE $

PRICING

15LT241

42,486

15LT133

2015 FORD F-150 XLT EMPLOYEE $

PRICING

41,526

15LT175

2015 FORD F-150 LARIAT EMPLOYEE $

PRICING

56,504

15LT123

2015 FORD F150 PLATINUM EMPLOYEE $

PRICING

64,909

13

2015 FORD EXPLORER LIMITED EMPLOYEE $

PRICING

46,835

13

15ESC255

2015 FORD ESCAPE SE EMPLOYEE $

PRICING

27,567

15ESC187

PRICING

37,251

MSRP $41,239

15ESC179

2015 FORD ESCAPE TITANIUM EMPLOYEE $

PRICING

37,165

15EDG265

2015 FORD EDGE LIMITED EMPLOYEE $

PRICING

43,285

15EDG242

2015 FORD EDGE SPORT EMPLOYEE $

PRICING

48,952

15EDG264

2015 FORD EDGE LIMITED EMPLOYEE $

PRICING

AWD MSRP $54,439

2015 FORD F-150 XLT EMPLOYEE $

PRICING

15LT256

42,744

43,199

15LT195

2015 FORD F-150 LARIAT EMPLOYEE $

PRICING

54,139

15LT173

2015 FORD F-150 LARIAT EMPLOYEE $

PRICING

51,688

2015 FORD EDGE SEL EMPLOYEE $

PRICING

15EDG196

36,756

15SD200

2015 FORD F350 LARIAT DRW EMPLOYEE $

PRICING

61,458

15LT111

2015 FORD F-150 LARIAT EMPLOYEE $

PRICING

50,919

15LT98

2015 FORD F-150 LARIAT EMPLOYEE $

PRICING

51,693

2015 FORD F-150 XLT EMPLOYEE $

PRICING

15LT254

45,408

15LT192

2015 FORD F150 PLATINUM EMPLOYEE $

PRICING

63,427

PRICING

32,211

15LT138

2015 FORD F-150 LARIAT EMPLOYEE $

PRICING

54,266

15FOC154

2015 FORD FOCUS SE 4 DR EMPLOYEE $

PRICING

20,793

4X4 MSRP $49,049

2015 FORD F-150 XLT EMPLOYEE $

PRICING

15LT80

39,525

4X4 MSRP $53,149

2015 FORD F-150 XLT EMPLOYEE $

PRICING

15LT247

43,045

4X4 MSRP $73,819

15LT181

2015 FORD F150 PLATINUM EMPLOYEE $

PRICING

61,423

4X4 MSRP $50,669

2015 FORD F-150 XLT EMPLOYEE $

PRICING

15LT134

40,914

HATCH MSRP $20,914

15FIE166

2015 FORD FIESTA SE 5 DR EMPLOYEE $

PRICING

17,964

13

IN STOCK

AWD MSRP $32,514

15ESC245

2015 FORD ESCAPE SE EMPLOYEE $

PRICING

29,481

AWD MSRP $35,089

15ESC198

2015 FORD ESCAPE SE EMPLOYEE $

PRICING

15ESC167

31,524

AWD MSRP $33,514

15EDG263

40,195

15ESC163

2015 FORD ESCAPE SE EMPLOYEE $

PRICING

AWD

PRICING

62,822

31,695

13

2015 FORD ESCAPE SE EMPLOYEE $

2015 FORD EDGE SEL EMPLOYEE $

PRICING

IN STOCK

MSRP $34,889

MSRP $44,539

15SD172

2015 FORD F250 LARIAT SRW EMPLOYEE $

SEDAN MSRP $22,314

AWD

PRICING

4X4 MSRP $79,519

4X4 MSRP $64,799

AWD 2015 FORD ESCAPE SE EMPLOYEE $

65,861

4X4 MSRP $76,149

13

15ESC252

PRICING

4X4 MSRP $55,199

IN STOCK

MSRP $35,689

15SD76

2015 FORD F-350 LARIAT SRW EMPLOYEE $

4X4 MSRP $63,199

4X4 MSRP $62,299

4X4 MSRP $83,049

4X4 MSRP $77,939

4X4 MSRP $62,499

AWD MSRP $40,539

43,352

4X4 MSRP $65,349

AWD MSRP $47,889

PRICING

4X4 MSRP $52,799

AWD

AWD MSRP $47,989

45,980

IN STOCK

AWD 2015 FORD ESCAPE TITANIUM EMPLOYEE $

PRICING

13

IN STOCK

MSRP $41,339

2015 FORD MUSTANG GT EMPLOYEE $

AWD

13

IN STOCK

15M233

13

MSRP $30,289

2015 FORD F250 XLT CREW PU SRW EMPLOYEE $

COUPE MSRP $51,149

IN STOCK

AWD 15EXP100

43,180

4X4 MSRP $77,869

IN STOCK

MSRP $51,399

PRICING

4X4 MSRP $68,099

4X4 MSRP $49,869

2015 FORD F-250 XLT CREW PU SRW EMPLOYEE $

4X4 MSRP $52,499

4X4 MSRP $72,549

15SD64

4X4 MSRP $63,399

15SD82

4X4 MSRP $54,374

4X4 MSRP $78,269

4X4 MSRP $61,249

62,091

4X4 MSRP $54,574

A47

30,342

AWD MSRP $44,339

2015 FORD EDGE SEL EMPLOYEE $

PRICING

AWD MSRP $39,089

2015 FORD EDGE SEL EMPLOYEE $

PRICING

15EDG258

35,508

15EDG275

40,278

AWD MSRP $43,939

2015 FORD EDGE SEL EMPLOYEE $

PRICING

15EDG248

39,679

BLOWOUT

PRICE MSRP $34,599

14TC365

2014 FORD TRANSIT CONNECT XLT EMPLOYEE $

PRICING

25,980

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A48

PIPELINE NEWS August 2015

One of the largest oilfield tank trucking companies in the industry, operating continually in Saskatchewan for more than 50 years!

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Tim Boettcher

306-483-8121

Hot Oil Trucks & Pressure Trucks

Grant Anderson, Manager

306-483-7405

Pressurized Trailers

Justin Boettcher, Sales

306-485-7597

Mike Crawford, Dispatcher

306-485-7970 403-352-8770

Canada & United States Oilfield Tank Trucks

Gravel Trucks, Backhoe, Bobcat Combo Vac Units & Steamers

Kelly Carter, Safety

OILFIELD FABRICATION Heavy Truck Body & Paint Custom buil t skid units fo r all your oilfi eld needs.

Red Seal Journeyman 17’ x 60’ Semi Downdraft Paint Booth Industrial Sand Blasting & Painting Oilfield Internal Tank Coatings

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CARGO TANK REPAIR All Types of Welding & Fabricating

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