Pipeline news january 2017

PIPELINE NEWS Saskatchewan’s Petroleum Monthly

January 2017

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Canada Post Publication No. 40069240

Volume 9 Issue 8

REFINERIES:

One announced, another may be expanded Focusing on Midale: Pro Canada West A8 Come On Inn & Suites A11 Apache Canada A12 PureChem Services A14

Refining is big news these days, with the announcement of a possible greenfield 40,000 barrel per day refinery near Stoughton by Dominion Energy Processing Group, Inc., a subsidiary of Quantum Energy, Inc. Husky Energy is also seriously looking at expanding its capacity at its Lloydminster asphalt refinery by 30,000 barrels per day. This is the Regina Co-op Refinery Complex on a very cold Dec. 15. See related stories page A2, A3. Photo by Brian Zinchuk

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PIPELINE NEWS January 2017

Husky plans three thermal projects in Lloydminster area, refinery expansion decision in 2017  By Brian Zinchuk Calgary – Husky Energy announced its 2017 capital budget, and it’s up significantly from last year’s $2 billion, to the range of $2.6 billion to $2.7 billion.

For Saskatchewan, plans for expansion of the Lloydminster asphalt refinery and new thermal plants top the list.

Newly minted CEO Rob Peabody said in a Dec. 13 release, ““Our investment program will generate higher margins, further lower our corporate break even and increase our free cash flow.”

Husky plans to add approximately 45,000 barrels per day (bpd) of new higher return production, with average production for the year expected to be in the range of 320,000335,000 barrels of oil equivalent per day (boepd).

In looking at future thermal projects that

made sense even with oil in the US$30s and US$40s per barrel WTI, the company identified 18 more potential Lloyd thermal projects.

Their plans are global, from Indonesia to offshore Newfoundland. But in the Lloydminster area, the company noted plans of “Increasing volumes from the Edam East, Vawn and Edam West Lloyd thermal projects, the Tucker Thermal Project and the Sunrise Energy Project are expected to raise average thermal production to about 125,000 bpd, an increase of more than 30 percent over 2016 average thermal production.”

Lloyd and Tucker Thermal projects have $600 million to $630 million pegged in capital expenditures. Lloyd non-thermal capex is set at $85 million to $90 million.

For mid-term growth, the company plans three new Lloyd

thermal projects with total design capacity of about 30,000 bpd have been sanctioned at Dee Valley, Spruce Lake North and Spruce Lake Central. Subject to regulatory approval, first production for all three is expected in 2020. Development continues on a 10,000 bpd Rush Lake 2 Lloyd thermal project, with first oil scheduled for the first half of 2019.

Refinery expansion Engineering is progressing to provide for the expansion of Lloydminster asphalt capacity to 60,000 bpd by 2021 to accommodate growing Lloyd thermal volumes; the project will be considered for sanction in 2017.

Additionally, the company is increasing investment in Western Canada resource plays, with 16 wells slated to be drilled next year.

This will contribute to an anticipated increase in resource play

production to about 36,000 boepd by the end of the year.

Husky’s production projections illustrate the continued growth of its thermal emphasis.

Its guidance for 2017 shows annual average production expected to be in the range of 320,000-335,000 boepd. Of that, Lloyd and Tucker thermal is expected to be 103,000 to 105,000 bpd, while Lloyd non-thermal is pegged at 44,000 to 46,000 bpd. Oilsands thermal is set at 20,000 to 22,000 bpd.

A four-week turnaround is planned at the Lloydminster asphalt refinery in the second quarter. The Lloydminster Upgrader will undergo a sevenweek turnaround beginning in the second quarter.

The company has finished about 80 per cent of its planned dispositions of properties in Western Canada.

Peabody noted that it’s not a fire sale.

Husky Energy’s Lloydminster asphalt refinery is being considered for a 30,000 barrel per day expansion. As seen in this graphic courtesy Google Earth, there is a vacant area to the north, just about equal in size to the current 30,000 bpd refinery.

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PIPELINE NEWS January 2017

A3

New refinery announced for Stoughton  By Brian Zinchuk

the area, we’ve looked at the network that’s there.

There’s been a variety of different discussions on meeting the volume of 40,000,” Stemler said.

When it comes to transporting out refined product, he said, “We’re a little premature. We’ve been discussing some off-take situations with different off-take vendors that we want to work with. There’s been some question with regards to railing it, or trucking it into the Regina or Estevan area. The product would be staying in Saskatchewan. As far as the movement goes, right now we’re still discussing trucking.

“As far as upgrading the infrastructures around the plant, it has been discussed with the municipality, as well as the Ministry of the Economy. We have discussed all those points on traffic. One of the key things about the traffic is just how the infrastructure is designed, how it’s built, what do we need to do to rehabilitate it to get it to a level of comfort, just to get our equipment it. It is definitely a huge discussion point at this time.”

“We’re still in the detailed design stage,” he said.

Construction As for cost, he said, “Right now our budget is set at $600 million. That includes our water feeds, from start to finish, all our construction, infrastructure upgrades; that’s our whole budget right now.”

“Right now, from start to finish, the first oil we would still like to get a finished product in 2019. It would be 2.5 to three years to complete.”

Could the skyline south of Stoughton look like this is a few years? This is Section V of the Regina Co-op Refinery Complex, as seen on Dec. 15. Photo by Brian Zinchuk

When they begin scratching dirt boils down to the permitting process, he said. “If we can turn the permit around, as discussed, we could possibly start turning dirt in July/August 2017. That’s our target.”

“The total footprint is 320 acres. The biggest part of our footprint is going to be our water collection system. Water is a key component to a hydrocarbon plant, right?

We’ve got a variety of ponds. So we’ve got a good portion of land for water, recirculation and recovery system.

“The initial plan for Train 1 will be offset of the centreline of the property, allowing us for future expansion as well.

With this footprint, that plant, with tank storage, will sit on 180 to 210 acres. So it’s a big plant.”

During construction, on the civil side going into the mechanical phase, he expects about 200 people at work. “On the operating staff, it will be 60 people to run it, for the one plant,” he said.

The slack labour and housing market is definitely one of the drives behind the project.

“We’re trying to catch this little downturn in

the market, not only for better steel prices, but the mod yards are a little bit slower now. We would use mod yards in Saskatchewan. We’ve got a couple chosen vendors.”

On local housing, he said he’s met with the mayor of Stoughton with regards to building new houses or a subdivision, if required. There is housing available, and lots of hotel space available, he noted for the build phase.

Expressing a preference for local contractors, he said, “We want to try to get as many local people as possible so we don’t get into that situation, as far as camps and hotels. We’re not at that level at this point in time.

I have checked out the local area, as far as camps, hotels, even restaurants and how the guys will get food.”

As for tank storage, there is still detailed design work to be done, looking at things like how much surge storage will they need, and can some be stored below ground?

“On the finished product side, we’re probably going to run into … 480,000 barrels of finished storage is what we’re planning right now.

That would include our slop tank and EDP.” Refined product They are not seeking to export finished product to the U.S., but rather to sell it in Canada, for consumption in Canada. The facility would produce 21,540 bpd of retail gasoline and 13,600 bpd jet and/ or ULS diesel. It would also produce natural gas liquids, drilling mud oil, ULS fuel oil, sulphur and carbon dioxide.

“Our intention is to get to the rail distribution. If we can get to the transload, and we haven’t even discussed that with any of the rail people at this point of time. We’re still negotiating different things for offtakes. Part of that offtake is depending on what the vendor wants to do as well. If they want it railed, we’ll work on those terms with the rail people. But at this time, we’re just getting into the technical part of the offtakes.

It’s up to the vendor.

The vendor will dictate how he wants to see the product flow in the long term.”

He used an example of a small gas station company buying gasoline Page A6 ▲

Stoughton – Before the end of the decade, there could be a new oil refinery near Stoughton, processing Saskatchewan oil and selling the finished product to Saskatchewan vendors.

On Dec. 1, Quantum Energy, Inc. of Tempe, Az., announced it was forming a Canadian subsidiary, Dominion Energy Processing Group, Inc. (DEPGI), whose focus would be building a 40,000 barrel per day oil refinery near Stoughton.

The project is expected to cost of $600 million.

A week later the Quantum announced it had contracted 320 acres of land for the project, located immediately adjacent to the Crescent Point Energy Corp.

Viewfield gas plant.

That gas plant is 3.2 kilometres west and 4.8 kilometres south of the intersection of Highways 13 and 47, the southern edge of Stoughton. The land location for the proposed refinery site is the western half of 8-88-W2, according to Guy Shepherd of Moosomin’s Farm Boy Realty, who handled the transaction.

The Crescent Point Viewfield facility is also connected the Tundra Energy Marketing Ltd.’s (formerly Enbridge’s) Westspur pipeline system, the principal gathering network for southeast Saskatchewan.

Keith Stemler is CEO of Dominion Energy Processing Group, Inc. Pipeline News spoke to him by phone at length on Dec. 14.

Incorporated nationally, Dominion’s corporate headquarters will be in Regina.

As their chosen site is right beside Crescent Point Energy’s main facility in the prolific Viewfield Bakken region, which has its own associated rail loading facility a few kilometres to the north, we asked about their relationship with Crescent Point.

“We’re in negotiations with them on a feedstock, but that’s still not been 100 per cent finalized. But they’re part of our strategic alignment in the location. That’s all I can say at this point,” Stemler said.

The announced capacity, 40,000 bpd, is not far off from Crescent Point’s production in the area. A few years ago, Crescent Point was producing over 50,000 bpd from its Viewfield area. Will this refinery act as a merchant refinery, and accept crude from surrounding producers, or would it be locked up largely, and perhaps exclusively, by Crescent Point?

Stemler said, “Still undecided. We’re still working with about three other vendors, not directly, but indirectly, to make sure we get our volumes.

“We understand what the pipeline connection points are, and where we might have to tap off a line. But we’re still in negotiations with different vendors to make sure we get our 40,000.

So the volume is still in the works, as far as our daily volumes.”

Their own gathering system from other suppliers has been discussed.

“We haven’t moved forward on any sort of avenue with regards to (a) collection system. But it’s been discussed. In

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PIPELINE NEWS January 2017

PIPELINE NEWS

EDITORIAL

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Refineries are the value added we’ve always wanted.

Will it come to pass?

In recent weeks two major developments have come up in the Saskatchewan oilpatch, the type that occur only once in a generation.

First Husky Energy said they were looking at an expansion of their asphalt refinery in Lloydminster.

This could happen in the vacant land to the north of the existing refinery. But if not, they could build on a new site. If so, essentially it would be a new refinery, although more likely it would be an addition to the upgrader complex on the Saskatchewan side of the city.

Then on Dec. 1 we had the announcement that Tempe, Az.-based Quantum Energy, Inc. had formed a Canadian subsidiary, Dominion Energy Processing Group, Inc. Their intention is to build a new, greenfield refinery at Stoughton, adjacent to Crescent Point Energy Corp.’s Viewfield gas plant. This proposed refinery is pegged at 40,000 bpd.

Suddenly we’ve got two refinery projects in the works, with a combined processing capability of 70,000 bpd. Given that Saskatchewan’s current production is now around 454,000 bpd, this new refining capability would handle about 15 per cent of our production. That’s nothing to sneeze at.

Quantum made of a string of announcements for new, small scale refineries across North Dakota and Montana in the first half of 2014. It’s key to remember that date, because oil was still floating around $100 per barrel. Since then, they have failed to scratch dirt on any of those proposals.

But let’s take that into context. How many billions of dollars of projects in the oilsands have been canned as a result of the two-year decline in the oil

industry? Those projects were with companies with some of the deepest pockets in the world, and they didn’t go ahead.

Also, more than 20 liquefied natural gas plants have been proposed for the British Columbia coast, and not one has scratched dirt yet, either. So we can see that getting greenfield projects of this scale off the ground can be difficult, to say the least.

There are several advantages to building now. Labor availability is very high, labour costs, correspondingly, are low. The housing shortage that plagued the southeast is long gone, which means a builder can likely get away without having to pay for a camp.

Commodity prices for things like steel are down. Fab shops are desperate for work, and with sharp pencils, will likely jump at such an opportunity.

Finally, if you are an American refinery developer, your dollar will go a lot farther building north of 49 versus south, given our dollar is trading around 75 cents U.S. One other thing about refineries: they tend to expand over time. The Co-op Refinery Complex in Regina completed its fifth phase expansion a few years ago. The proponents of the Stoughton proposal are already planning with an eye to expansion down the road. The Husky project is, by definition, an expansion.

It’s a long road from proposal to first oil. World oil prices can and do play havoc with project economics, financing and timelines. We’ve got a long way to go before first oil is achieved at either of these projects. But if they do come to pass, they are some of the most important developments in this province in a generation.

PIPELINE NEWS January 2017

All these delays have a cost

I was enthralled with a recent series of news stories the National Post ran called Arrested Development. The four-month effort looked into 35 various projects worth $129 billion that have been stalled by red tape or resistance to the point where many have simply died off. Others wait in limbo, and each day, their likelihood of completion diminishes.

These pieces coincided precisely with a premise I’ve maintained for years – we’ve become a nation of it can’t be done. We’re now Can’tada.

One piece in particular struck home, because it played a direct part in my life. I was at my prime in 2000 at the end of the massive Alliance pipeline project. That megaproject from Fort St. John, B.C., to Chicago, and was of a similar scale of the original proposal for the Keystone XL pipeline. I was 25 years old, and while I had flunked out of university and was unsuccessful in getting my virtual reality training simulator project off the ground, I was in great physical shape, and on my way to getting a trade as an excavator operator. I recall our union boss talking about how it was important to get your training, boys, because

when that Mackenzie Valley pipeline goes, it’ll take every pipeliner in Canada to build it and several years to get it done.

Given we had bought a house for only $118,000 in 2001, and that I had made more money on the Alliance job than I could have ever dreamed, it was not unrealistic for me to calculate I could have paid off my mortgage on that one Mackenzie Valley job – or at least put a very, very large dent into it.

So I took my training.

The union local, flush with cash following several years of big projects for TransCanada, Enbridge and Alliance, set up its own training school called Operating Engineers Training Institute of Saskatchewan (OETIS) for precisely this purpose.

I was in its first series of classes, then its second, earning my second year (of two) apprenticeship card for pipeline equipment operator (excavator). I was doing small pipeline projects and working for local contractors when they had work.

I figured I was ready to “break out” as an excavator operator by the time the Mackenzie Valley pipeline project would go.

Any day now, we thought. It was already 2003, and the union boss

expected, back in 2000, that it would go ahead the next year or two.

Any day now.

So I waited and waited, paying union dues while doing other work, with the expectation that this project would happen. In 2003 I was offered a job in the newspaper business, with the Battlefords News-Optimist. For the first few years in the back of my mind I expected I might end up back on the pipeline – this pipeline, any day now.

The delays went on and on. I had taken a 50 per cent pay cut by giving up pipeline work, but at least I was working. Eventually, I took a withdrawal card from the union, and stopped paying dues.

The pipeline was finally approved in 2010, by which time I had long moved on with my life – now working as editor of, ironically enough, Pipeline News. But the world had changed. A few years before, natural gas was selling for $10 a gigajoule, and Mackenzie Valley promised a bonanza. But the horizontal, multi-stage fracking technique overtook the gas business, developing tremendous gas resources in the American northeast.

Suddenly, gas dropped to $2 to $3 a gigajoule, and stayed there. The opportunity for

A5

OPINION

FROM THE TOP OF THE PILE

By Brian Zinchuk

Mackenzie Valley had been lost, for everyone involved.

As the National Post pointed out, Inuvik, the originating point of the pipeline, lost out tremendously. The pipeline, proposed first in the 1970s, is now likely never going to happen. Billions of dollars that could have flowed into the northern economy if that pipeline had been built are now gone.

In my case, the house did not get paid off. If the project had gone ahead, followed by Keystone XL, Northern Gateway and then Kinder Morgan Trans Mountain Expansion, maybe I would be digging ditches today instead of writing newspapers.

But this is just one example. Be it Northern Gateway, Keystone XL, Ontario’s Ring of Fire, countless mine projects, gas development in New Brunswick and Quebec – all of these things have been stalled, or killed, cutting off countless billions in economic activity that would last generations. Billions would have flowed into the economy, and into government coffers by way of taxes and royalties. We fought world wars in less time than many of these projects have been studied.

This is where I’m

curious to see what Donald Trump will accomplish in the next four years. His basic philosophy is to hell with that, get it done, now.

Enough with the B.S. On so many levels, we

need that cutting through the B.S. here.

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

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PIPELINE NEWS January 2017

320 acre site secured, plant would take 180-210 acres ▲

Salt and H2S will be stripped out, he noted.

Other projects Dominion’s parent company, Quantum Energy Inc., has made similar announcements and land deals at Baker, MT, Fairview, MT, Stanley, ND and now Berthold, ND in 2014, before the crash in oil prices that has resulted in a two year downturn. Asked what has happened with those projects, Stemler said, “The Berthold one has been in permitting now for several months.

It’s continually working with the State of North Dakota. That’s part of the dilemma. We do have the land. So it’s just a matter of excercising some certain options with permitting.

“I don’t know all the details. I don’t deal with that plant. There’s another group in the States that’s diligently working towards … There was some changes in management in Quantum in the last year. So they’re still working on it.”

Asked what they’re doing differently in Can-

ada to ensure the success of the Stoughton project, he said, “The Canadian group, we’ve been working with the government for about 18 months.”

“The capabilities, I think, are a little different in Canada.

“I think there’s more coordination, can we say, between the company, the government and the local administration, the RMs and stuff that are welcoming this plant which allowed us the confidence to move forward at a more rapid pace.”

Pipeline News spoke to Ed Dancsok, Assistant Deputy Minister, Senior Strategic Lead for Petroleum and Natural Gas Development, Ministry of the Economy, who confirmed the refinery proponents have been speaking to the government for about 18 months.

Stemler said, “To start one of these projects is a huge task, because there’s an alignment on stakeholders that it takes a long time to develop what you’re going to do, just in a planning

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stage. Now that we’ve completed that planning stage and the first part of our stakeholder alignment, it allowed us to move forward and start to announce the project. Are we a long way away? We’re still through a lot of negotiations.

It’s not that easy just to throw out an announcement. There’s a lot of background that’s been done – carbon emissions, carbon tax problems, is it a federal thing? There’s a lot to this. I think some people are saying this just came out of the blue.

It maybe it did on the announcement, but in the background, no, we’ve been working. We’ve had a team on this for quite some time.”

CO2 Quantum’s Dec. 14 press release noted the project would have “CO2 recapture to limit greenhouse emissions and to support long-term tertiary recovery for EOR within the Canadian Bakken/Torquay region.”

It would also have the development of an 85 megawatt steam driven

co-generation power plant that will not emit atmospheric CO2.

Asked about carbon capture, which cost $1 billion to add to a coal-fired generating unit at SaskPower’s Boundary Dam Power station, Stemler said, “There’s a difference between an outside the boundary (OSB) recapture system, where you have to actually produce another product to capture the CO2. So in our state, we have a design which is proprietary, we’ve designed this over the last couple of years, where we actually do this in-line.

So the equipment is far different from what they have right now. It’s very high tech stuff. It’s proven. It works. I can’t tell the plant. They’ve already set one of these up in the United States and it works fantastically.

Hopefully, this group, we’ve employed them to come on board with our engineering group to work through all the details with us as well.”

They’ve already got a carbon dioxide buyer

lined up. Stemler said, “Right now, the CO2 that we recapture is already claimed by a vendor. It is a purchased product.

That offtake has already been committed to. So part of the plan was, if we recapture, do we have a buyer? Yes, we do.”

The captured carbon dioxide would be used for CO2 enhanced oil recovery (EOR). This process has been used in the nearby Apache Midale Unit on at test basis since 1984 and on commercial scale for over a decade. It is also used, to a greater extent, in the Cenovusoperated Weyburn Unit.

Small refineries in Williston Basin The Stoughton announcement is part of a movement towards small refineries in the Williston Basin. In recent years, WBI Energy Inc., (a subsidiary of MDU Resource Group Inc.) built the 20,000 bpd Dakota Prairie Refining LLC project near Dickinson, N.D. In June 2016 Tesoro Refining & Marketing Co. LLC ▲

Page A3 from Fort Saskatchewan, Alta. They would pay freight on board (FOB) at the rack. “You pull your truck in, you fill it up truck and away you go,” he said. “That’s typically how you go. Now, on a long-term situation, the purchaser of the product might want to rail it, because he’s shipping it somewhere else or it’s going to be a dropship type component on his end. Done. It still hasn’t been determined.

But we still would like to see all the product stay in Saskatchewan. That’s the whole intent of this.”

Is there enough demand?

“Oh yes, definitely,” he replied.

Hydrocracking refinery Stemler said it would be a hydrocracking refinery. That’s a more complex refinery than, say, a topping refinery.

“It’s all wet,” he said.

“This is all hydrocracked, atmospheric cracked. No coker. We don’t need to put in a coker. With this sweet crude, we don’t have to.”

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PIPELINE NEWS January 2017

If your business is based on CHOPS, you might want to diversify  By Brian Zinchuk Calgary – Husky Energy’s continued shift from cold heavy oil production with sand (CHOPS) to thermal production in the Lloydminster region was laid out in the company’s Dec. 13 conference call outlining its 2017 capital expenditures.

At the very end of the call CEO Rob Peabody laid out a little nugget with regards to the company’s thoughts on CHOPS. Asked about how the company will deal with increasing operating costs as oil prices go up, Peabody spoke about how the company’s shift towards thermal projects, and away from CHOPS, is key.

A journalist inquired about how they will keep their costs low if activity levels across the basin pick up next year. Peabody said, “I think the main thing is that the majority of the work we’ve done in driving

CHOPS, or cold heavy oil production with sand, has been a mainstay for Husky’s oil production in the Lloydminster region, as seen here a few kilometres south of the city last September. However, the company is increasingly focusing on thermal oil production instead. Photo by Brian Zinchuk

our costs down over the past six-plus years is structural, as opposed to just driven through procurement. While we’ve realized a lot of procurement savings, it’s more moving to projects with lower F&D costs and lower operating costs.

“The most extremely good example of that is in heavy oil, where the majority of our produc-

tion used to come from CHOPS, or cold heavy oil production with sand, and we’ve moved that to thermal. In doing that, we’ve moved our F&D, or finding and development costs.

Where they were sitting in the range of the upper $20 a barrel in F&D costs, we’ve moved that down to about $12 a barrel in terms of F&D costs.

“And our operating

costs that were approaching $20 a barrel. We’ve moved that to under $10 a barrel. In both cases, we’ve done kind of a 50 per cent-plus cost reduction. That has nothing to do with procurement. That has to do with the technology we’re deploying in developing that oil.

“We’re doing the same sort of things in Western Canada by moving to resource plays where we’re able to use this manufacturing approach to production.

“I absolutely anticipate we will see cost pressure as prices go up, because I do think the service industry is, on balance, in aggregate, under water at the moment. I think we’ll be in a good position to be on the right side of the curve, because most of these have been structural cost savings.”

Peabody’s statements have been borne out by the

company’s usage of drilling rigs in the Lloydminster region over the last two years, and especially over 2016. Their rig usage, as indicated by Rig Locator (www.riglocator.ca), has been greatly reduced compared to previous years, during the boom. Typically in the last year they would have just one or two drilling rigs working in the

A7

Lloydminster area, usually on SAGD projects near Edam. There have been very few new wells drilled

by Husky in CHOPS production areas.

Yet in the same call, Peabody noted Husky has now identified 18 new thermal sites capable of producing 10,000 barrels per day, and is moving to develop three of them.

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A8

PIPELINE NEWS January 2017

Pro Canada West’s Midale fab shop  By Brian Zinchuk Midale – Pro Canada West Energy’s shop in Midale is an important part of their integrated business, building the facilities hardware their field crews often install.

Darin Gutzke is their regional manager in Midale. He spoke to Pipeline News on Dec. 12.

The company has about 65 people working out of Midale. About ten are from Midale and nearby Halbrite. In the shop, they have welders from Weyburn and Estevan.

About ten people work in the Midale shop that are supervised by shop foreman Grant Stinson.

FIED TES I L

Dustin Thue is a contract journeyman welder at Pro Canada West Energy in Midale. The blue plume shows how effectively the repositionable ventilation system draws away fumes.

be down. People will be skeptical on spending more.”

With oil prices at US$45 to US50, the industry is no longer

“getting beat up.”

“We have to get consistently in the US$60 range for oil companies to plan future projects,” he said.

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pick up. There’s a cost and a learning curve for letting people go and having to replace with new hires.

He added you don’t want to risk quality or safety.

Pro Canada West does some mainline work, too, and is active in potash mine projects.

“We can do large diameter fabrication - 24 and 30 inch pipe,” he said.

Gutzke is happy to hear about an announced refinery for nearby Stoughton. “I’m hoping that’s a good thing,” he said.

“We do have large scale pipeline, facilities and civil work capabilities. We would be interested in bidding on it. We’ve ramped up in potash and pipeline projects up to 200 people.”

Pond work, which would be required for any refinery, falls within their capabilities, as an example.

Asked about 2017, Gutzke said, “I’m hoping. There’s still talk the first half of 2017 will

TE

A

Jordan Beaudin contract welds with Pro Canada West Energy in Midale.

Most of their work in the shop is fabrication, according to Gutzke.

As most of their pipeline work in the area is fibreglass, the fabrication supports those efforts by making skid packages, risers and headers. They also do some bid work for midstream companies.

Compared to three years ago, they’re probably down 35 to 40 per cent as far as workload.

But they’ve kept moving. He’s noticed stronger drilling programs planned for the first quarter of 2017. “There’s usually a pipeline for every well drilled,” Gutzke said. Those pipelines lead to more header packages and skids.

“Fortunately, the two companies we do a lot of work for have continued to work during the downturn,” Gutzke said.

To deal with the downturn of the last two years, he said, “We haven’t reduced wages a lot. We took away a few perks. We’re really trying to maintain our core of workers for when things

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A9

Grain terminal proposal has crude-by-rail in mind, too  By Brian Zinchuk

Dan Cugnet

spoke to Pipeline News in a follow up interview on Dec. 15.

Comtrax is looking at a 60,000 tonne grain facility, with a loop track and possibly ladder tracks or long sidings, adjacent to the CP mainline.

They’re initially looking at a minimum 260 car capacity, with the intention of scaling that number up. “We envision up to 1,000 cars,” he said.

The loop track setup could see one loop track for grain, another for

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dian and US dollar, just to name a few examples.

It could be more than simply shipping out of southeast Saskatchewan. It could mean bringing in heavier stock and blending it with lighter oil from this region, he offered.

“When we look at crude-by-rail, or grain, it comes down to volumes.

You do it better. Let’s build something CP wants.”

There had been a short-lived, small scale crude-by-rail facility on the mainline in Estevan, but as of now, there is nothing operating on a mainline in the region.

Cugnet pointed out that crude-by-rail facilities tend to be on shortlines.

He noted that while local shortlines are success stories, “The goal of a short line is to get stuff on the mainline.”

Page A11 ▲

Estevan – Despite the fact most crude-byrail facilities in Saskatchewan are now idle, including some very large and expensive ones on the western side of the province, there’s a plan to offer crude-by-rail services at a new facility in southeast Saskatchewan.

Comtrax Logistics Solutions Inc. spent several days in mid-December holding meetings in towns throughout southeast Saskatchewan floating its proposal, which is primarily focused on grain handling.

The idea is to build a large, new grain terminal somewhere between Yellowgrass and Midale on the Canadian Pacific Soo Line, one of the rail company’s mainlines, and one that runs directly into the American Midwest.

Dan Cugnet, whose many entrepreneurial roles include being chairman of Valleyview Petroleums Ltd., is one of the seven members of the exploratory organizing committee. He’s been one of the presenters trying to drum up producer support, both grain and oil producers. He spoke in Estevan on Dec. 12 and

dropped out of the oil market. It does handle propane, however.

The operating principle behind Comtrax is a lot different than a conventional grain terminal.

They’re looking at is as “more of a public house,” Cugnet said. “We don’t want to be another grain company.”

Thus, two to four companies could operate out of the common facility, he suggested. A similar model is being considered for oil.

A fundamental reason behind such a grain terminal is the continued growth in crop yields over time.

Their vision is in no way a small facility. “We want to have a lot of room,” he said.

So where does crude-by-rail come into this? Cugnet said they want to be ready when, not if, opportunities for crude-by-rail comes back.

“Our business model is not built on crude-byrail,” he said. But when various differentials work out, there will be opportunities, he expects.

Which differentials?

“I’m talking about all of them,” he replied. That could be between Brent and WTI, or the Cana-

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A10

PIPELINE NEWS January 2017

▲

Dominion expects 200 people at a time to build refinery, 60 people to run it Page A6

bought that plant, making it Tesoro’s second refinery in the state.

Meridian Energy Group, Inc. is in the permitting process to begin construction in 2017 of the Davis Refinery, at Belfield, N.D., just a few kilometres west of the Dickinson refinery. These are in addition to Quantum’s previously announced plans for multiple refineries throughout North Dakota and Montana.

Stemler explained how new, small greenfield refineries now make sense, when hardly any new refineries have been built in North America over the last three decades. He said, “If you’re specific on what your feedstock is, you can design the kit, the actual processing system, to meet that oil, without upgrading.

If you take off a blended product line, like the Tundra line, you require an upgrader. As soon as you start to get into upgraders, your facility requirements start to change. Then you’re into the billions of dollars on the spend.

“For merchant refineries, they have to be designed and operated much more technically, with a lot more logic in them to provide a finished product off a modulated crude slate.

“These plants, although they’re small,

technically they’re so advanced, they can handle a change in product, but not a drastic change. So in the Bakken, if you look at how MDU did their plant – and this is probably part of our delay, because we dissected that plant – what they did wrong, what they did right, what made them different from others. Through the lessons learned, we were able to increase our design immensely while still staying on a good budget.

“If you take a big plant, to redo Co-op, would probably be maybe $6 billion. But for $600 million, you can do smaller merchant refineries. And if you do three of them, your output quantities are going to be relatively the same. But you design the plant for the local feedstock, whether it’s Bakken, or, maybe if you go into southwest Saskatchewan where your feed is going to be a little different, you design the plant for that specific product. That’s the difference.

“You want to stay away from upgrading. Upgrading is where it really gets into environmental concern, cost concern, waste concern. There are so many different issues with an upgrader.”

As for possible expansion down the road for Stoughton, Stemler said,

“It depends on the offtake commitment. We’re talking to different groups in regards to how we configure that side of the plant.

We’re still waiting on feedback from a European company as well as a Canadian company about putting in a specialty plant that can feed off the main system. So we’re looking at a couple of different things.”

Asked why the websites for both Quantum and Dominion do not include phone numbers or street addresses, he explained, “As we grow, more information will be put on those websites. We didn’t want to publish private phone numbers until we get to that corporate level where we’re headed to in the New Year. So once we get that corporate level, that corporate identity set up, yeah, those websites will grow.”

Town hall meetings There will be two upcoming town hall meeting in Stoughton in early 2017.

At a later date, they will have a contractors meeting as well. Stemler doesn’t want to be overrun with potential contractors at the public meetings, should any sort of problem arise that could delay the start date.

“It’s essential people know it continues to move forward in a positive

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PIPELINE NEWS January 2017

A11

Tough times in the motel business Midale – The oil downturn has been tough on those in the motel business. For the Come On Inn & Suites in Midale, it means there’s a for sale sign in the front yard.

“It’s been really slow.

We’ve had to put money in to keep the doors open.

It’s been just about a year now,” said Irvan Berg, who

is one of four partners in the hotel. He was the contractor who built the $1.4 million project in 2011.

The motel has 18 rooms. Ten are single rooms, while eight are larger, with two beds and a kitchenette.

They’ve even had a couple weeks with no clients at all.

Page A9 Thus, as with grain, the key point is to be on the mainline in the region, as well as use of unit trains.

“Our goal is to give this option to every producer in southeast Saskatchewan, and perhaps maybe even Manitoba or North Dakota.”

That extends to smaller companies, too, he noted, be it companies producing 500 or 5,000 barrels per day locally.

“We want to create an access point for all comers,” he said. That could change over time.

If things go well with

the grain producer meetings, in a perfect world, Cugnet would like to see a facility able to handle grain in the fall of 2018.

If they could break ground in the spring of 2017 and have track in place for later that fall or winter, he suggested grain or crude oil could be transloaded until the full scale facility is in place.

But first, they have to get the track built. Weather was a major factor in the construction of the recent Ceres Northgate facility, and he recognizes it could be “a huge part of it,” for Comtrax, too.

The property is appraised at $1.8 million, but listed for $700,000.

As for staff, he said they are down to one person, noting, “We had three at one time.”

During the boom times, Berg said, “We were good. We had all the bills paid, money in the bank.

“It took us about a year to gain any traction. It started to go well.”

But he noted the region gained three hotels in Weyburn, three in Estevan and two in Stoughton.

In early Decem-

The Come On Inn & Suites in Midale is up for sale

ber Dominion Energy Processing Group, Inc. announced its intention to build a 40,000 barrel per day oil refinery at nearby Stoughton. If that project goes ahead, it would be a shot in the arm to many

of the hotels and motels in the region.

“There’s a good chance we would keep it if things turn around,” Berg said.

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A12

PIPELINE NEWS January 2017

Apache Canada’s Midale unit started using CO2 in 1984  By Brian Zinchuk Midale – Long before CO2 entered every day conversation, it has been used in southeast Saskatchewan to bring more oil out of the ground.

While it doesn’t attract as much attention as the larger Cenovus-operated Weyburn unit, the Apache Midale Unit has a long history of being a pioneer in carbon dioxide enhanced oil recovery (EOR).

The usage of CO2 in a miscible flood has dramatically extended the life of the field. The first wells were drilled in 1953, and produced for nine years under primary production until 1962 when it was unitized and waterflood was initiated, a process that continues to this day.

But for over 30 years now, the unit has added CO2 to the mix to increase production.

The pilot injection

began in 1984, using foodgrade CO2 trucked from a fertilizer plant in Medicine Hat, Alta. In 1999, the demonstration project ceased injecting new CO2 but continued to recycle that which was in the reservoir. It was time to look at full commercialization.

It was at this time Apache took over the operation.

The full commercialization began in 2005.

The scale of the project was now substantially larger – and it didn’t make sense to truck CO2. The project would be fed by the same carbon dioxide pipeline from the Dakota Gasification Company, Beulah, North Dakota, that would feed the thenEnCana Weyburn project.

The Apache line is a 6-inch diameter lateral off the mainline near Goodwater.

Darcy Nolte is the senior operations foreman with Apache. He and Paul

Apache employs 28 people full-time at its Midale complex. Here a crew truck pulls into the main plant on Dec. 15. Photo by Brian Zinchuk

Wyke, Apache Canada’s senior advisor for communications and media relations, spoke to Pipeline News on Dec. 15 about the project.

Nolte explained, “We are a waterflood, but we also use CO2 to perform enhanced oil recovery.

Roughly two-thirds of our field is under CO2 injection. We use a system called WAG, water alternating gas injection. We go back and forth, depending on cycles and pressures and a couple other things, between water and CO2 to drive the oil recovery.

“We are a carbon capture facility as well, and we inject the CO2 downhole as well.

“The CO2 we inject is a by-product of the Dakota Gasification Company in Beulah, North Dakota. They ship it to us via pipeline, and we inject it, and re-inject it. This carbon dioxide stays in the ground,” Nolte said.

“We re-capture, recycle and reuse. We also purchase ‘neat,’ fresh, new CO2 from Dakota gasification.”

The Midale unit covers approximately 362 square kilometres (140 square miles). It’s roughly 20 kilometres (12 miles) north-south, and 20 kilometres (12 miles) east-west, centred on their Midale Production Complex at 7-12-6-11-W2.

In recent years Apache has continued

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said. “I think we’re fairly significant, as far as the community goes.”

The Midale Unit currently produces an average of 4,200 barrels per day.

“It’s a declined rate from approximately 5,000 two years ago,” Nolte said.

“We have not drilled since 2013. We did one exploratory well then. We have no plans to drill right now. We’re in the middle of remodelling our reservoir. There’s new technology out there that enables

us to look at our reservoir in a clearer, more refined way. Once we complete that, it helps us determine where we will drill.”

The process is proprietary and in-house to Apache.

“Once that is done, and they’ve modelled and determined the best areas, 4-D seismic will be performed and analysis will be done. At that point we’ll determine where ▲

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to expand its CO2 usage, expanding and optimizing the CO2 flood. This is achieved by doing more well conversions to WAG injectors through areas identified by reservoir specialists.

“We’re not increasing the amount (of CO2).

We are increasing the number of wells we inject into,” Nolte said. “We’ve optimized the amount of CO2 we use, because it is a commodity we pay for.

It comes from the U.S., so there is a conversion for that, from Canadian to U.S. dollars. So we have to spend our money wisely and get the best efficiency can from what we’ve purchased,” Nolte said.

Apache currently injects 1,850 tonnes of CO2 per day, the equivalent of removing 34,103 midsize vehicles from the road annually. Since inception of EOR at Midale, Apache has injected and sequestered (stored) approximately 3.5 megatonnes of CO2.

There are 28 full-time staff working in the Midale Unit. As the field is largely flowlined, and subsequently pipelined over to the Plains Midstream and TEML (formerly Enbridge) terminals a few miles to the southeast, thus they use very little trucking.

“We employ people from the local area. We are one of the biggest contributors to the tax base of the RM of Cymri.

We, through the tax base, support the schools, roads, and all the infrastructure that’s out there,” Nolte

Page A13

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A13

▲

Midale unit continues adding CO2 injectors Page A12

we’ll drill and put those straws in the ground,” Nolte said.

Even if oil prices rise in 2017, Nolte doesn’t anticipate new drilling for the next while. “I would say within the next three or four years.”

Wyke said, “Our Midale Unit is an integral part of Apache Canada’s operations and a coveted part of what we do every day. Plans change, and planning

The Apache Midale Production Complex is approximately six miles (10 kilometres) northeast of Midale. Photo by Brian Zinchuk

out changes, but it will be part of our portfolio in Canada for the foreseeable future.”

As for 2017, Nolte said, “We’re going to

continue wrapping up our modelling program.

We have some well conversions to injectors, to get that CO2 going to the right spots. Not

anything you would consider super-active, but steady with a vision to five, seven years down the road to where we want to be. If oil picks

up, if the commodity gets better, that could change. We’re conserva-

tive. We try to spend money as wisely and appropriately as we can.”

Enbridge and TEML deal closes include the Saskatchewan Gathering and Weyburn gathering systems as well as the Westspur trunk line. The assets do not include the Bakken Expansion Pipeline, which enables delivery of crude oil production in North Dakota to the Enbridge Mainline System at Cromer, Manitoba.

“The sale of the assets at an attractive valuation provides an ef-

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with oilfield, commercial, industrial and residential wiring

one-half of the target we set in September, in conjunction with the announcement of our planned acquisition of Spectra Energy, to monetize approximately $2 billion of non-core assets to strengthen the balance sheet and provide additional financing flexibility.”

Page A14

CHAD FROESE

COMMITTED TO SASKATCHEWAN

▲

 By Brian Zinchuk Calgary – The deal to sell Enbridge Inc. and Enbridge Income Fund Inc.’s south prairie region assets to Tundra Energy Marketing Limited (TEML) for $1.075 billion in cash closed on Dec. 1.

The assets sold are liquids pipelines and related facilities in southeast Saskatchewan and southwest Manitoba, and

CELL: 306-421-3726 OFFICE: 306-388-2941

We know Saskatchewan - it’s cold, it’s flat, we drive the grid roads, we know what a bunny hug is, and we even cheer for the Rough Riders. Arnett & Burgess Pipeliners (A&B) was founded in 1957, by Les Arnett and Ray Burgess. Les Arnett was a Saskatchewan native and was a proud graduate from the University of Saskatchewan.

A&B has been providing pipeline construction services in Saskatchewan and we support both our clients and our teams by providing local employment.

A&B has two growing offices in Saskatchewan, in Regina and Estevan.

abpipeliners.com Arnett & Burgess builds and maintains pipeline infrastructure based on the principles of quality, safety and integrity.

A14

PIPELINE NEWS January 2017

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Enbridge and TEML deal closes Page A13

The proceeds from the sale will be re-invested into organic growth projects of the Fund, including the Wood Buffalo Extension, Athabasca Twin and Norlite projects.

Shipper commercial arrangements and contracts are expected to remain in place and it is expected that crude oil and NGL volumes delivered from the assets will continue to flow onto the Enbridge Mainline at Cromer.

TEML president and CEO Bryan Lankester told Pipeline News they were working towards moving the control centre back to Estevan.

It had been move to Edmonton a few years ago.

“Probably in Q2, about May,” he said.

Perhaps when it’s warmer the Enbridge markings on the tanks at the Midale terminal will be replaced by those for Tundra Energy Marketing Limited. TEML’s purchase of Enbridge’s south prairie assets closed on Dec. 1. Photo by Brian Zinchuk

PureChem added Midale shop in 2015  By Brian Zinchuk Midale – Not too long ago, it was common to see oilfield businesses set up new shops all over southeast Saskatchewan.

But with the two-year downturn in the oil industry, such occurrences have become rare, indeed. But PureChem Services has bucked that trend, and opened a new location in Midale in 2015, followed by Melita in Manitoba.

Kelly Orsted is the business development manager for the Midale area, while Clinton Lund, PhD, also spends some of his time working out of that location. Lund is a chemist and technical business development manager. Both individuals call Midale home.

They’re among the five to six people that work

out of the Midale location.

Orsted said construction on the new shop, on the east side of town, started about two years ago. They moved-in in the fall of 2015. About an hourand-a-half drive from Carlyle, PureChem’s manufacturing and technology facility, Midale is one of many satellite locations. Orsted explained it’s another central point for their customers, from Minton to Estevan.

The Midale location primarily looks after the area west of Highway 47.

“We hire people in the surrounding community so they don’t have to travel far,” he added.

Having a location in Midale, with a delivery and batch driver, is more efficient.

Orsted noted it saves roughly three hours a day of “windshield time” as opposed to coming out of Carlyle.

It’s also easier to service the plays along the U.S. border that have ramped up lately.

Orsted said it’s convenient to have a facility in the area. For example, if a service rig needs packer fluid or stimulation fluid, they’re a lot closer. “It boils down to servicing the customer more efficiently, where the customer is,” he noted.

“We’ve grown dramatically in southeast Saskatchewan, southwest Manitoba, and Alberta in the last two years,” he said, attributing the growth to being adamantly service-oriented, 24 hours a day, seven days a week, 365 days a year.

Lund explained

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they have a warehouse of production chemicals and some lab equipment in Midale.

That includes a viscometer, centrifuge, balance, and water bath for emulsion testing; equipment that would be typical for what you’d have in a field office. They also have of-

fices and a boardroom in Midale.

In the yard they have the full gamut of production chemicals, including corrosion and scale inhibitors, demulsifiers and wax inhibitors. Lund added they also have solid chemistry technology.

The solid chemis-

try, which uses pellets or balls, dissolves slowly for time release.

The pellets are about a half-inch long and the balls come in two- and four-inch diameter sizes. This technology came with the acquisition of Jacam Chemicals in Kansas in 2013.

Page A15 ▲

HOTELS FOR REAL LIFE

Kelly Orsted performs a bottle test at the PureChem Services’ branch in Midale. Photos

by Brian Zinchuk

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PIPELINE NEWS January 2017

A15

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PureChem added Midale shop in 2015 Page A14

Midale is in CO2 country, with the Apache Midale unit to the north, and Cenovus’ Weyburn unit to the west. Lund noted that when it comes to

carbon dioxide floods, “You need to formulate the product differently.

Two to five per cent CO2 is normal for a well. On a CO2 flood, you might see 25 per cent. CO2 is a corrosive acid gas.”

He noted they’ve tackled some problematic wells using a binary corrosion inhibitor.

It works on a similar philosophy to twocomponent epoxies in that it must be mixed during application and is only active for a set amount of time.

“Since we put the shop up, lots of business has been added in that area,” Lund said.

“They take notice,” he added.

“It’s a combination of service and chemistry that gives the customers what they

This is the new PureChem Services’ Midale location.

The centre bottle in this bottle test shows oil separating from water.

want and keeps them coming back.”

This is a viscometer at PureChem Services’s Midale location.

A Division of JJ Trucking Ltd. • • • •

Box 1360 Carlyle, SK S0C 0R0 Office (306) 453-0014 Fax (306) 453-0015 • Cell(306) 575-6013 General Oilfield Maintenance and Construction

Oilfield & Municipal Graveling Pipeline Bedding Sand Environmental Clean Ups Trucks Licensed and Insured for Three Prairie Provinces & USA • Excavating • Grading • Heavy Equipment Hauling • COR certified

TOLL FREE 1-888-LD-ALLAN (1-888-532-5526) Creelman, Sask.

Serving the industry since 1975 Serving South East Saskatchewan and South West Manitoba

Dispatch: (306) 421-9295 Office: 306-433-2069 ∙ Fax: 306-433-1223 Larry Cell: (306) 457-7712

Trenchless Drilling:

• Pipelines • Re - Route water wells • Sough • Install Power • Roads • Highways • Railway Tracks • Rivers C.H.D.D. Operations Field Manager Robert Skuce & our Team offer considerable know-how earned through years of practical experience.

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OUR PEOPLE

OUR DIFFERENCE The long term culture at A&B is both distinct and strong, with many 2nd, 3rd and 4th generation employees. This makes A&B a preferred employer and contractor.

Our longevity in the industry has been a direct result of continually practicing our core values of: quality, safety, and integrity.

A&B would like to welcome Tyler Featherstone, Divisional Construction Manager to our Regina team.

Tyler, a local to Prince Albert, SK, has been working with A&B for 15 years. Beginning his career as a labourer, then moving to lead, to foreman, followed by superintendent, and now Construction Manager, Tyler is a true A&B Pipeliner.

abpipeliners.com Arnett & Burgess builds and maintains pipeline infrastructure based on the principles of quality, safety and integrity.

A16

PIPELINE NEWS January 2017

Cugnet family donates $1 million to Children’s Hospital Saskatoon – The family of the late Ken Cugnet donated $1 million towards a new pediatric surgical suite at Children’s Hospital of Saskatchewan, in Saskatoon.

The announcement was made on Dec. 14, as part of the Children’s Hospital Foundation of Saskatchewan “We Can’t Wait” capital campaign will support one of three dedicated pediatric surgical suites, which are a first for the province.

Ken Cugnet had been a prominent Weyburn oilman, including owner of Valleyview Petroleums Ltd., a board member of Crescent Point Energy and involvement in numerous other oilfield enterprises.

His family has carried on in that vein since his death two years ago.

“We ask ourselves often, are we builders or bystanders? We hope this Christmas, in the spirit of giving, that others will choose to be builders for the Children’s Hospital of Saskatchewan,” explained Jo Bannatyne-Cugnet, Ken’s widow, who is a children’s author and also

worked as a nurse for twenty years after training at the University of Saskatchewan.

Located on the ground floor of the new maternal and children’s hospital, these special surgical suites will be designed to meet the unique needs of children who require surgery. Conveniently located near the dedicated pediatric emergency department, the integrated suites include both an operative area and induction room allowing parents to stay with their child while anesthesia is being administered, offering a reassuring presence when preparing for surgery.

“We are so grateful for the extraordinary generosity of the Cugnet family towards our new surgical unit within Children’s Hospital of Saskatchewan,” said Cindy Graham, Saskatoon Health Region’s Director of Surgery Services.

“We have had a dedicated team of patient advisors, staff and physicians help design this unit, including our induction rooms, to support parents in staying

Jo Bannatyne-Cugnet (seated, centre) and family. Photo submitted

with their child during anaesthesia. Our teams worked through thousands of details to plan our integrated operating theatres. When the doors open and you walk through the unit, you will see many thoughtful and purpose-built extras, including our private recovery rooms, all designed to improve the surgical experience for Saskatchewan families.

Today, we are busy taking this vision of exceptional

(306) 462-2130 nankivelltruckingltd@signaldirect.ca nankivelltrucking.ca

You Call We Haul 24 Hour Service BOX 123 KISBEY, SK S0C 1L0

Mark T. (Curly) Hirsch

AUCTION LAND AUCTION

VAL VEROBA, KELLY FLECK, DALLAS FLECK & SHERRY MOFFAT THURSDAY, MARCH 23, 2017 DAYS INN, ESTEVAN, SASK. 7:00 P.M.

2. NE-19-04-06-W2 RM #34; FVA 73,400, 2016 Taxes $422.68, 2016 146 Acres Canola, 159 Titled Acres, $13,350.00 Surface Lease Revenue 3. SW-19-04-06-W2 RM #34; FVA 74,900, 2016 Taxes $431.31, 2016 145 Acres Canola, 160 Titled Acres, $3600.00 Surface Lease Revenue

®

1595 Dieppe Cres.

Secor Certied Backhoe Available Estevan, Sask. Service Cell: (306) 461-5898 1595 Dieppe Cres.

Secor Certi ed S4A 1W8 Fax: (306) 634-6690 Estevan, Sask.

Cell: (306) 461-5898 S4A 1W8 Fax: (306) 634-6690

1 3

8 5

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7

9

2 4

10

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Please join Mack Auction Company on March 23rd for your chance to own 12 quarter sections of prime farmland in the RM of Browning #34. There is over $60,000.00 of Surface Lease Revenue being sold with the land which is located in the center of the Lampman/Steelman gas and oil fields!

1. NW-19-04-06-W2 RM #34; FVA 80,400, 2016 Taxes $462.99, 2016 144 Acres Canola, 159 Titled Acres

&

the Children’s Hospital of Saskatchewan project,” says Health Minister Jim Reiter. “Our government and generous donors like the Cugnet family believe Saskatchewan people deserve a state-of-the-art maternal and children’s hospital that will meet the unique needs of mothers, babies, children and teens. This project will have a long lasting impact to Saskatchewan people for many generations to come.”

Construction on the 176-inpatient bed facility is approximately 33 per cent complete and is scheduled to open in late 2019.

LAND

Lampman 6 Miles

er Service Ltd. k c i P s ’ y l r u C Mark T.ke(Curly) Hirsch S r e r c v i ice Ltd. P s ’ y l r u C

our of her late husband Ken Cugnet. “We are proud to make this donation to the Children’s Hospital Foundation of Saskatchewan to build a facility that will be there in the future to serve the medical needs of Saskatchewan families when they come looking for a miracle for their child.”

The Cugnet family gift was a unanimous decision made by the entire family, which includes Jo and Ken’s four sons and their families.

“On behalf of the Government of Saskatchewan, I want to thank the Cugnet family for their incredible donation to

care and using it to plan how we will make it reality when we open the doors. This donation is critical to helping us realize patient-first, familyfirst surgical care for our youngest patients and their families.”

“Our family has always been grateful to those who came before us to build this great province. We are grateful for the schools, churches, libraries, universities and hospitals that were built by those who had so little but worked hard and shared what they could to contribute to the future,” said Bannatyne-Cugnet of the gift made in hon-

4. SE-19-04-06-W2 RM #34; FVA 70,100, 2016 Taxes $403.67, 2016 135 Acres Canola, 148.65 Titled Acres, $10,000.00 Surface Lease Revenue (Sub- Divided Yard Site Does Not Sell!)

5. SE-29-04-06-W2 RM #34; FVA 71,300, 2016 Taxes $410.58, 2016 125 Acres Canola, 137.3 Titled Acres, Existing Surface Leases Not Included In Sale (Sub-Divided Yard Site Does Not Sell!)

6. SW-29-04-05-W2 RM #34; FVA 61,700, 2016 Taxes $355.30, 2016 132 Acres Soy Beans, 132.11 Titled Acres, $2725.00 Surface Lease Revenue

7. SE-29-04-05-W2 RM #34; FVA 61,600, 2016 Taxes $354.72, 2016 120 Acres Soy Beans, 160 Titled Acres, $3050.00 Surface Lease Revenue 8. NE-28-04-05-W2 RM #34; FVA 79,300, 2016 Taxes $456.65, 2016 135 Acres Yellow Mustard, 160 Titled Acres, $5775.00 Surface Lease Revenue 9. SE-28-04-05-W2 RM #34; FVA 69,800, 2016 Taxes $401.94, 2016 135 Acres Yellow Mustard, 159 Titled Acres, $7175.00 Surface Lease Revenue 10. SE-18-04-05-W2 RM #34; FVA 73,500, 2016 Taxes $423.25, 2016 139 Acres Wheat, 140.24 Titled Acres $8450.00 Surface Lease Revenue (Sub-Divided Yard Site Does Not Sell!)

11. SW-17-04-05-W2 RM #34; FVA 82,100, 2016 Taxes $472.77, 2016 140 Acres Wheat, 159 Titled Acres, $6650.00 Surface Lease Revenue 12. SE-06-04-05-W2 RM #34; FVA 76,500, 2016 Taxes $440.52, 2016 135 Acres Wheat, 159 Titled Acres

Visit www.mackauctioncompany.com for sale bill and photos. Join us on Facebook and Twitter.

306-421-2928 or 306-487-7815 Mack Auction Co. PL 311962 Box 831, Estevan, SK S4A 2A7 Ph: (306) 634-9512, (306) 421-2928, (306) 487-7815 Licensed, Bonded & Insured P.L. 311962 www.mackauctioncompany.com