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SAFETY: Going the next step
Gibson Energy exiting trucking business A2
Q&A with new Energy & Resources Minister A3
Well Control Group to bring IWCF, IADC to Estevan A15
With safety statistics improving for many years, how do we go to the next step? That’s a major question for Energy Safety Canada, formerly known as Enform. Murray Elliott is the new president of Energy Safety Canada, and he visited their Weyburn office on Jan. 31. See story Page A12. Photo by Brian Zinchuk
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PIPELINE NEWS March 2018
Gibson to sell off trucking, focus on tanks and infrastructure By Brian Zinchuk Toronto – Saskatchewan’s highways have long seen tanker trucks with the name Gibson emblazoned on them. But that will soon pass. What was once a trucking company, will be one no longer. In conjunction with Gibson Energy’s 2018 investor day in Toronto on Jan. 30, Steve Spaulding, president and chief executive officer, said, “As we take a look at Gibson Energy, there’s no doubt our crown jewel is our Hardisty asset, and our Edmonton storage assets. But the question is, how do all the other businesses work together and compliment each other, and how do we grow?” “What you will see today is a dramatic transformation of the business,” he said. “Gibson Energy will no longer be thought of as a trucking business.” “We will be a crude oil infrastructure business with high quality cash flow.” The plan includes continually developing storage assets at Edmonton and Hardisty, and building out additional services in and around those core terminals, and to focus on crude oil basins in Canada and the U.S. “We want a business that will grow at any crude oil price, so we targeted a strategy that went at a US$45 to US$55 crude oil environment. At that price, both
Trucks like this one, with the Gibson name on it, will soon carry another banner. File photo the Canadian oilsands and key oil basins we picked as our focus basins win, and they grow.” They expect another 500,000 to one million barrels per day (bpd) growth in Canada over the next 10 years. “In the Permian basin, they can grow a million barrels, next year,” Spaulding said. They’re expecting to grow at least 10 per cent per share, with “quality cash flow.” They’re planning one
to two tanks per year at their major terminals. The Canadian oilsands are a strategic asset for Hardisty, and their SCOOP/ STACK (Oklahoma) and Permian (west Texas) assets are prospective for gathering system growth. This growth will be financed by asset sales. “There are assets in our portfolio that just don’t fit. These are good businesses, and really, a lot of great people, that don’t fit our forward strategy,”
Gibson Energy’s Hardisty, Alta., terminal is its crown jewel. Graphic courtesy Gibson Energy
he said. Their industrial propane business was sold last year for $412 million. Their U.S. environmental services, including water hauling, is expected to be sold in the first quarter of 2018. “Gibson Energy has really been known as a trucking company, in the past,” Spaulding said. “Exiting business lines is a tough decision, but we think, the right decision.” In a schedule laid out in a press release, Gibson laid out target closing dates for four major divestitures. The first will be NGL (natural gas liquids) wholesale, in the third quarter of 2018. Non-core U.S. injective stations and truck transport is expected to be gone by the fourth quarter of 2018. Canadian truck transportation is next, in mid2019. Non-core Canadian environmental services is pegged for mid-2019 as well. Moose Jaw “We get a lot of questions about Moose Jaw,” he said, referring to their asphalt facility there, but he downplayed calling it a refinery, listing at length the key common refinery
components not present at Moose Jaw. “It’s literally just two separation towers, two heaters, supply tanks and refined products tanks.” At its Moose Jaw facility, the company believes there are opportunities to realize further operating and maintenance capital cost efficiencies. The company is also evaluating potential high-return capital projects, including increasing throughput at the facility at an attractive relative cost. Consistent with its infrastructure focus, the company has initiated a process to reduce cash flow variability by securing take-or-pay tolling structures on a portion of output capacity and will re-evaluate the role of the Moose Jaw facility in the future. Gibson is committed to divesting of its noncore business lines in a timely, structured manner. The company has continued to advance the sale of its U.S. environmental services business as previously announced, and expects to complete the divestiture by the end of the first half of 2018. As part of the new strategy,
the company also intends to divest of several other businesses that have been deemed non-core based on their strategic fit with Gibson’s oil infrastructure focus and target basins. Gibson has engaged an advisor to support the sale of NGL Wholesale and expects to place all the remaining assets to be disposed into the market by the end of 2018, with a target of concluding the non-core divestiture process by mid-2019. Aggregate proceeds from the sale of non-core businesses are expected to range between $275 million and $375 million, and will be reinvested into the core infrastructure business through funding future growth capital expenditures. Spaulding said higher oil prices could drive more tank construction, as could pipeline constraints. “We’re talking about a dramatic change to the business. We will be an oil infrastructure business. We’re going to build in and around our core terminals in Canada, and develop a basin infrastructure strategy. The assets that don’t fit will be sold,” Spaulding said.
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TOP NEWS
Bronwyn Eyre new Minister of Energy and Resources By Brian Zinchuk Regina – Bronwyn Eyre was sworn in on Feb. 2 as the new Minister of Energy and Resources, as well as Minister Responsible for SaskEnergy and SaskWater. Along with her appointment comes a change in the ministry’s name. Several years ago, the Ministry of Energy and Resources was subsumed by what was the then-new Ministry of Economy. The letterhead and business cards of the staff all said “Ministry of Economy.” But there were actually two ministers – one overall for Economy, which included many aspects of what used to be called economic development, and one which focused on energy and resources within the ministry. It led to the curious situation of having two ministers for essentially the same thing, at least when it came to the oil and gas industry. Thus, at various events, one could see either the Minister of Economy or Minister of Energy and Resources show up.
The “Economy” name is gone now, and the Ministry of Economy, which had been an amalgamation of several previous ministries, has now been split into the Ministry of Export and Trade Development, Ministry of Immigration and Career Training, and Ministry of Energy and Resources. Jeremy Harrison is responsible for the first two areas and Eyre is responsible for the third. One of Premier Scott Moe’s campaign initiatives was to focus on trade by setting up a new Ministry of Export and Trade Development. Harrison, who had been Minister of Economy, now takes up that position and that of and Minister of Immigration and Careers Training. Harrison, an early entry into the race for the Saskatchewan Party leadership, had withdrawn from the leadership race and threw his support behind Moe. Harrison said on Feb. 2 Export and Trade Development will be a dedicated,
stand-alone ministry responsible for co-ordination within government looking after investment development. He said it will result in more focus and, ultimately, Saskatchewan’s exports continuing to grow, which they have been doing at a record pace. Immigration will be part of Harrison’ focus as well, as Premier Moe’s stated goal is 1.5 million people by 2030. In her previous role as Minister of Education, Eyre attracted some controversy regarding treaty education in the classrooms. Asked in a scrum on Feb. 2 if that was a factor in her
changing ministries, Moe told reporters it wasn’t, adding, “Minister Eyre will do a good job in Energy and Resources. I look forward to working with her there in a very important role. Most notably, just in the last couple of days, with the conversation around slowing up the pipelines in Western Canada here. So Minister Eyre has a very important role to play here in advancing the economy here, in the province of Saskatchewan, in making sure our goods get to market.” Eyre’s biography on the Legislative Assembly of Saskatchewan website states, “Bronwyn Eyre was
elected MLA for Saskatoon Stonebridge-Dakota in the 2016 provincial election. “A former radio broadcaster and columnist, Bronwyn also served as a Saskatoon public school board trustee. Previously, she was a senior writer/ editor for UK-based legal publications Commercial Lawyer and European Lawyer. She attended McGill University and the University of Saskatchewan (BA’93, LL.B.’96) and speaks French, German and Italian. Eyre was previously Minister of Education and Minister responsible for the Status of Women,
Bronwyn Eyre is the new Minister of Energy and Resources. Photo courtesy Government of Saskatchewan and before that, she served as Minister of Advanced Education.
Q&A with Minister Bronwyn Eyre By Brian Zinchuk Saskatoon – On Feb. 2, Premier Scott Moe appointed his new cabinet. Most of the cabinet was a continuation of the previous cabinet, or re-instatement of those who had resigned from cabinet to run for the leadership of the Saskatchewan Party. But there was one noticeable change.
The “Economy” name is gone now from the list of ministries, and the Ministry of Economy, which had been an amalgamation of several previous ministries, has now been split into the Ministry of Export and Trade Development, Ministry of Immigration and Career Training, and Ministry of Energy and Resources. Jeremy
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Harrison is responsible for the first two areas and Eyre is responsible for the third. Pipeline News corresponded with Minister Eyre via email regarding her new role, one she takes after having previously been Minister of Education. She responded on Feb. 16. ► Page A6
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PIPELINE NEWS March 2018
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There can be no other goal but zero for injuries and fatalities At the end of January we had the privilege of having an extended conversation with Murray Elliott, the relatively-new president of Energy Safety Canada (ESC), formerly known as Enform. On his jacket was a lapel pin, the red circle of the “Mission: Zero” campaign. He had obtained it the day before in Regina, meeting with the Workers Compensation Board. This lead to a discussion about the goal of eliminating all workplace accidents and deaths, with Pipeline News at times playing devil’s advocate, as reporters are wont to do. When asked if we can ever get to zero, he responded, “Many, many, many organizations and operations have demonstrated they’ve gone decades without injuring people. Will we get there tomorrow? No. But this is about, like WCB, Mission: Zero, there can be no other target than getting to zero. That’s a combination of eliminating the hazards and having the right workplace culture.” Pressing him on the issue of human nature, how people can be young, drunk or simply stupid, he replied, “You’re not going to make everyone into saints. That’s where you need the right kind of safety net, and multiple barriers in place, such that a single person slip is not the only barrier to having a bad outcome. So when you do have incidents, make sure you learned from them, and what failed. Nothing is because of just one action. It’s a series of actions. If you can intervene in any point in that, that’s really the goal, so that one slip up from one individual cannot get you to serious mishap.” Elliott is, of course, right in that zero injuries, zero deaths, truly can be the only goal anyone should aspire
too. The official number of people who We’ve all worked with someone who died in the construction of the Hoover was just clueless. Stupid is as stupid Dam was 96, although the Bureau of does, as Forrest Gump said. Reclamation website says that number Then there’s mechanical failures. may be has high as 112, if you include Rigging may fail. Something might preliminary work. Building the initial break, a pipe might burst. It’s a dangerCanadian Pacific Railway resulted ous place, this oilpatch. in the deaths of “some 1000 Chinese It sounds like we’re making exlabourers,” according to former prime cuses. But the reality is, our culture in minister Stephen Harper, when, in the oilpatch has collectively recognized 2006, he apologized for a head tax on that no excuse is tolerable anymore, and Chinese people. that there is only one goal: zero injuThe days ries. Zero deaths. where expecting X Everyone goes amount of deaths home safe. in a certain project In that same size are over in the interview, Bob 21st century. Ross, manager for Yet still, manESC Saskatchkind is fallible. ewan, said, “Since In the upabout 2002, we’ve coming months, seen a 67 per we will be even cent reduction, a moreso, with the steady decline in impending delost time injury criminalization of rate. This year, in marijuana. 2018, all four of The oilpatch our rate codes that we look after, have is going to have seen a decline. The a hell of a time greatest decline enforcing mariof any industry in juana bans at work, the province was with its pending - Murray Elliott, the operation of legalization. Good president of Energy Safety Canada our oil wells. The luck with that. biggest flow of But beyond cash return on preMary-do-youmiums was the actual drilling industry. wanna, other illicit drugs, and most of Right now, this is only time in the hisall, alcohol, continue to be consumed tory of the oilpatch our time loss injury and will always be consumed. rate is lower than the provincial averPeople working hard over long age, which is absolutely, fully supportive hours will be overtired, prone to slip of where this industry is going and the ups or drowsiness. There’s a reason commitment to health and safety.” injuries are more likely at the end of a That, friends, shows we are indeed hitch, or week. on our way to Mission: Zero. Sometimes people are just stupid.
You’re not going to make everyone into saints. That’s where you need the right kind of safety net, and multiple barriers in place, such that a single person slip is not the only barrier to having a bad outcome.
PIPELINE NEWS March 2018
OPINION
Your job has been terminated, by robots In 1991, Arnold Schwarzenegger, as the Terminator in Terminator 2: Judgement Day, warned us this day is coming. In describing the coming rise of machines, the Terminator said, “In three years, Cyberdyne will become the largest supplier of military computer systems. All stealth bombers are upgraded with Cyberdyne computers, becoming fully unmanned. Afterwards, they fly with a perfect operational record. The Skynet Funding Bill is passed. The system goes online on August 4th, 1997. Human decisions are removed from strategic defense. Skynet begins to learn at a geometric rate. It becomes selfaware 2:14 AM, Eastern time, August 29th. In a panic, they try to pull the plug.” If you drive a haul truck in the oilsands, you will soon be terminated – at least in terms of your employment. I have a lot of discus-
sions these days with our 13-year-old daughter, Katrina, about her future career. She’s extremely motivated to make sure she makes good choices now, when she enters high school and picks her classes, so as to not limit what she might do later. Of the many pieces of advice I’ve given her, one is a relatively new one to my consciousness. Up until this year, I hadn’t really thought about it, but now I’m thinking about it a lot: Don’t pick a career where you will be replaced by a robot. Big news on Jan. 30 was the fact Suncor has decided to fully implement driverless haul trucks in its oilsands operations. Their reasoning reflects the “perfect operational record” quote from the Terminator, as Suncor said, “Evaluations have shown that the technology offers many advantages over existing truck and shovel operations, including enhanced
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By Brian Zinchuk
safety performance, better operating efficiency and lower operating costs.” I expect the “perfect operational record” will come later. All hail Skynet, our robotic overlord. Hold the nukes, please. Hundreds of highlypaid, unionized workers will soon see their jobs disappear. The writing is on the wall for all other haul truck drivers. Most of them will likely be replaced by robots in the near future. While there will always be lots of jobs in the oilsands, this is one career option that high school counsellors can now cross off their list. Expect all other haul truck operators to follow suit in automation over the next few years. It was not lost on me that when the oil downturn hit the absolute lowest point, when southeast Saskatchewan’s summer rig count had fallen to
single digits, certain rigs were still working. Of those very few rigs still working at the time were several super singles. A conventional telescopic double Kelly drilling rig uses literal manpower as the muscles of the rig, with roughnecks manipulating tongs and a derrickhand manhandling pipe on the monkeyboard. A super single is a largely robotic rig, where machines do all the pipe handling. I’ve taken thousands of pictures of beefy roughnecks handling the tongs on Kelly rigs. On super singles, I’ve largely seen the (singular) roughneck apply dope to the threads while the driller sat in the climate-controlled doghouse using joysticks to control the rig. A Kelly rig will have five men on a shift, sometimes six. A super single usually runs with three.
Small wonder, then, that these rigs kept working when times were the toughest. The latest rigs like this are called advanced drilling rigs, or ADRs. One man who was very knowledgeable about running rigs once told me ADRs are the way of the future. A few years later, in the downturn, he spent several months supervising the cutting up of old conventional rigs. He may be right. I don’t expect we’re ever going to see automated Tesla trucks moving drilling rigs on a lease in a foot of mud. I would hope that most truck driving jobs in the oilpatch, with its highly variable nature (state of roads, weather, number of people around, etc.) will be not be replaced by robots. But other jobs may be. Will we see a lot
of field operators supplanted by SCADA and video camera systems? It’s an awful lot cheaper to plant a few video cameras around a site than it is to send a man to that site each and every day. Those cameras can also run 24/7, providing around the clock monitoring. It won’t replace boots on the ground, but it might mean each field operator ends up looking after more sites, but not having to visit each site every day. That, in turn, would mean fewer field operators. One oil company has already suggested to me they are looking at using technology along those lines, reducing windshield time. So watch out for the robots. They may be coming for you. Brian Zinchuk is editor of Pipeline News. He can be reached at brian. zinchuk@sasktel.net.
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New minister's marching orders ◄ Page A3 Pipeline News: What are your marching orders from Premier Moe as the new Minister of Energy and Resources? Bronwyn Eyre: One of the core principles of my role as minister is to collaborate with our oil and gas stakeholders to help create the very best possible environment in Saskatchewan for growth and prosperity. We will continue to engage with our stakeholders in the private sector to address barriers to investment and ensure responsible resource development and recovery. And in light of the recent challenges of pipeline development in Canada, I have been tasked to ensure we have the best opportunity to get our commodities to market. I will be a strong advocate for the oil and gas industry. P.N.: Energy and Resources had been a stand-alone ministry for many years, but then was subsumed into Economy. Now it’s on its own again. Can you explain what this means, and what your ministry’s focus will be? Eyre: The return of a separate and dedicated position in cabinet for
Energy and Resources represents a renewal of our government’s understanding of this sector’s importance to the economic growth of Saskatchewan. The ministry will continue to develop a strong relationship between the private and public sectors where both parties can work together for the betterment of our province. P.N.: We understand the regulatory and industry promotion roles, which had been merged under Economy, are now split. Is that the case, and if so, can you elaborate? Eyre: The Ministry of Energy and Resources is responsible for the coordination, development, promotion, and implementation of policies and programs for the economic and orderly development of the province’s natural resources. The Ministry of Energy and Resources will work closely with the Ministry of Trade and Export Development to ensure that our natural resource development investment and export opportunities are well promoted around the country and world. P.N.: Do you have any background in the oil and gas industry? What
do you bring to the table as the new minister? Eyre: I have a legal background (LLB, University of Saskatchewan, 1996), which I believe will serve me well, particularly when it comes to the regulatory aspect of this job. From 1999 to 2004, I was a senior editor/writer for Commercial Lawyer and European Lawyer magazines, both based in London, and covered, primarily, the corporate side of legal business—including major mergers and acquisitions. In the London and European legal markets, I met key players, some of whom had direct dealings with the energy and resource sector in Canada, and, specifically, in Saskatchewan. It was good experience. P.N.: Canada has been consumed by pipeline politics for nearly a decade now, and things are heating up between Alberta and British Columbia on the Kinder Morgan Trans Mountain Expansions Pipeline. Where do you see Saskatchewan’s role in this? Eyre: Saskatchewan’s oil and gas sector accounts for 15 per cent of provincial ► Page A7
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Saskatchewan producers lost $800 million due to differential ◄ Page A6 GDP, over 30,000 direct and indirect person years of employment, and accounts for between $3 billion-$5 billion annually of investment in the province. It is critical that Western Canada be able to diversify its crude oil export markets in order to get a better return on our products, as this will allow for greater job creation and revenues to government to provide
public services and critical infrastructure, including the building of new schools and hospitals. In fact, the lack of pipeline connections to tidewater cost Saskatchewan approximately $56 million in royalties and Saskatchewan producers $800M in 2017. The Trans Mountain Expansion is critical and the project must go ahead now that it has been approved by the federal
government. P.N.: What about other pipelines, i.e. the now-dead Energy East and still-to-be-built Keystone XL? Eyre: Saskatchewan is cautiously optimistic that Keystone XL and the Enbridge Line 3 Replacement Program will be fully completed in the near future. As several new large-scale oil sands projects come online in the coming years, these
projects are more important than ever to ensure that Western Canadian oil can move to market via pipelines, which are safer and more economical compared to shipment by rail. With respect to Energy East, this project has been cancelled and Central and Eastern Canada continue to import over 600,000 barrels per day according to a recent report by the Canadian Energy Research Insti-
tute. This state of affairs is especially astonishing when one considers that Canada is the world’s fifth largest oil producer. P.N.: Is there anything you would like to add? Eyre: In the Fraser Institute’s Annual Global Petroleum Survey in 2017 regarding investment attractiveness, we ranked seventh in the world out of nearly 100 jurisdictions assessed
and have consistently been among the top 10 jurisdictions over the past six iterations of that survey. There are global investment dollars out there right now in search of the best combination of resource potential with a reliable operating environment, and Saskatchewan is likely to be where many of those dollars are headed. We intend to keep building on that reputation.
By Brian Zinchuk Lampman – Carson Safety Services Ltd. is again in local hands, as Troye Carson bought the company back from the large firm that absorbed it several years ago. Carson Safety Services had been part of Carson Energy Services. That company was purchased by Flint Energy Services, which was, in turn bought by URS, then AECOM. As the downturn took hold over the last several years, AECOM has reduced its footprint in southeast Saskatchewan, including
shutting down what was once Carson Energy Service’s headquarters facilities in Lampman, across the street from Carson Safety Services. “April 1, 2017, is when I purchased the safety division from AECOM,” Troye Carson said on Feb. 1. “Now we’re back to Carson Safety. Ron was the owner. Now I’m the sole owner.” Ron Carson, Troye’s father, was the founder and majority owner of Carson Energy Services. “I approached them in December 2016. I could see they were look-
ing to get out of the safety line. While the downturn has had an impact for several years throughout the industry, safety is still a paramount, no matter what the price of oil. “Safety will always be there,” Carson said. “Safety has become a top priority, anywhere you work,” he said. The company has five full-time employees, one part-timer and two contractors who help out when things are busy. And that’s the way things are heading. “It seems when it rains, it pours,” Carson
said. “It’s gotten busier. You can tell the patch has picked up.” That staffing level has remained about the same, with contractors brought on as needed. Regular maintenance has always been important, whether it is fire extinguisher recertifications, gas monitors or air pack servicing, all services they provide. All of those personal protective equipment items need annual service, Carson noted. When things are neglected, it costs more to bring them up. He pointed out that
things can seize up if not regularly maintained. The company services the oil and industrial sector, as well as local fire departments. On that last front, he said, “We’re making progress. We’re always looking for new clientele. You want to satisfy your current clientele as well. He added that past and present clients have been supportive of their growth as an independent company. Indeed, he sees being independent as being advantageous. Key sales lines are sales and services for fire extin-
guishers, breathing air equipment and gas detection. “We do all makes, types and models,” he said. “We offer SCBA (self-contained breathing apparatus) respirational fit testing,” he said. “For BW/Honeywell, we are an authorized sales, service and warrantee depot.” The key word there, for Carson, is “authorized.” He noted that Preston Majeran, who handles sales and service, recently completed a course which certified him to inspect fall arrest equipment. ► Page A8
Carson Safety Services again in local hands
info@cpenergy.ca
O I L & GAS CONSTRUCTI ON & MAI NTE NANCE UNPARALLELED QUALITY / EXCEPTIONAL SAFETY / SASKATCHEWAN BASED / Canadian Plains is a Saskatchewan-based energy service company with offices in Carlyle, Regina, Alida, Lloydminster, North Battleford and Virden Manitoba. Established in the prairie provinces, we have a strong understanding of the need for relationships and trust with our customers. We support this with a commitment to quality and safety in all the projects we work on. Going beyond the mandatory certifications, we ensure that construction, fabrication and maintenance work meets all customer expectations while still maintaining a safe, responsible job site.
/ PIPELINE CONSTRUCTION / FACILITY CONSTRUCTION / FABRICATION / MAINTENANCE
LOCATIONS CARLYLE
208 North Service Road PO Box 699, Carlyle, SK Phone - (306) 453-3400 Fax - (306) 453-3401
REGINA
3-1025A Wellings Road RM of Sherwood, SK Phone - (306) 352-3400 Fax - (306) 352-3455
VIRDEN
130 Commonwealth Virden, MB Phone - (204) 748-2962 Fax - (204) 748-3251
ALIDA
126 Hwy 361 PO Box 220, Alida, SK Phone - (306) 443-3400 Fax - (306) 443.3401
NORTH BATTLEFORD
201-1321-101 Street PO Box 1390 North Battleford, SK Phone - (306) 937-6100 Fax - (306) 937-6113
LLOYDMINSTER
3804-10th Street PO Box 2536, Lloydminster, SK Phone - (306) 830-9353 Fax - (306) 820-9350
WWW.CPENERGY.CA
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PIPELINE NEWS March 2018
MS RS
People want to talk to a local company
◄ Page A7 That includes inspecting fall arrest harnesses, lanyards and certain Class 1 self-retracting lanyards, according to Majeran. “We can do that in house now,” Carson said. Regarding being an independent, when he’s knocking on doors, Majeran said he finds, “People want to talk more to a local company than a bigger one.” They spent money on flow test benches, fit test benches, fit test machines and a breathing air compressor. On that last item, they do samples twice a year, double the required rate. The company has nine air trailers used on sites were supplied air is required. They offer pickup and delivery of products, available upon request. It’s important to knock on the door, he added. “Without good clientele and employees, you would be nowhere. It’s important to keep good working relationships with employees and clientele,” he said.
Preston Majeran shows off the interior of an supplied air trailer offered by Carson Safety Services Ltd. Photo by Brian Zinchuk
Trinidad Drilling initiates strategic review process
On Feb. 20 Calgarybased Trinidad Drilling Ltd. announced that its board of directors has commenced a formal process to initiate a strategic review in an effort to enhance shareholder value. Trinidad believes that the
current trading price of its common shares does not reflect the value of the company, despite improving industry fundamentals and recent steps taken by Trinidad to improve shareholder value. Trinidad has a signif-
icant presence in southeast Saskatchewan, with 13 drilling rigs working out of its Carlyle shop. As of Feb. 20, according to sister publication Rig Locator (riglocator. ca), five of Trinidad’s rigs were working in Saskatchewan. Four were in the Oungre and Torquay areas, and one was in the
ultants
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ng
Steelman area. The company recently made headlines for moving some of its rigs to the United States for work. In connection with this process, the board intends to undertake a comprehensive review to identify and consider a broad range of alternatives and their potential
R.FRENCH TRANSPORT
to enhance shareholder value, including, but not limited to, a sale of selected assets, a merger, a corporate sale, a strategic partnership, various capital re-deployment opportunities or any combination of the foregoing. The company does not intend to set a definite schedule to complete its
evaluation or process and cautions that there are no assurances or guarantees that the process will result in a transaction or, if a transaction is undertaken, the terms or timing of such a transaction. The board has appointed a special committee of independent ► Page A17
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Safe-Tee Management now Nobel HSSE By Brian Zinchuk Oxbow – Safe-Tee Management of Oxbow has been acquired by a larger international firm. The company will now be known as Nobel HSSE, which stands for health, safety, security and emergency management solutions, according to Benn Armstrong, the new managing director. He spoke to Pipeline News by phone on Feb. 14. Armstrong originally hails from Australia. He’s been in Canada for 20 years. His background includes working with diamond mining in the Northwest Territories and uranium mining in Kazakhstan and Africa. Shirley and Jim Galloway, previous owners and operators, will stay on in advisory roles. They had run it for over two decades prior to the acquisition. The purchaser, Armstrong said, was an individual who wishes to remain anonymous, but is an international investor. Armstrong said
Nobel will be a stand along health and safety company. They opened a new office in Carlyle, on Highway 9 near the airport, on Feb. 1. The company will continue to maintain its Oxbow office. He said their services will remain the same in Oxbow, and they have now added Carlyle. Noting that the Oxbow area is slower, he said there’s a market for their services in Carlyle. The horizons from the company are broad, however. Armstrong said they are working on a “huge mining contract in South America.” In this case, it would be mining for gold. “We’re experts in what we do. That’s my expertise,” he said, noting it is an effort to diversify the company from oil and gas to mining and major construction projects. Services will include occupational drug and alcohol testing, fit and noise testing, industrial hygiene, construction safety, and oilfield and
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mining safety personnel. “These are safety advisors,” he said, adding their medics are separate. They’ll offer Certificate of Recognition (COR) development, incident investigation, safety auditing, workplace inspection and H2S training. “I’ve worked all across the world in health, safety and emergency management,” Armstrong said. Currently the company employs about 30 people between Oxbow, Carlyle and remote sites, but the intention is to grow substantially beyond that. Armstrong said they are aiming for 50 to 100 people over the next five years. Part of that is through the addition of site security and loss prevention control, working through an Aboriginal partnership. They’ll also provide emergency management, doctors, nurses and medics in the field, as well as fire and rescue personnel.
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PIPELINE NEWS March 2018
59th Weyburn OTS Bonspiel The 59th Weyburn Oilfield Technical Society Bonspiel took place Feb. 9-10. There were 24 teams participating. Jerry Mainil Limited No. 2 took top spot. That team was made up of skip Dale Mainil, third Jeremy Maurer, second Barkley Charlton and lead Kevin Moffat. Photos by Brian Zinchuk
Dean Nikolejsin leaves the hack.
Darcy Cretin, left and Calvin Tracey, right, prepare to sweep for Jeff Mosley.
Skip Shelby Bendsten of the Crescent Point No. 1 team watches her rock glide away.
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Tyler Tollefson spends a lot of time across the country in his management position with HSE Integrated, but he was home in Weyburn for the bonspiel, holding broom.
Tyler Gammack, centre, and Blane Molstad sweep hard while Kevin Wanner, left watches the rock’s progress down the ice. They played on the Goodwater Machine Shop team.
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PIPELINE NEWS March 2018
Energy Safety Canada moving towards common orientation By Brian Zinchuk Weyburn – What used to be known as Enform, and before that, Petroleum Industry Training Society (PITS), is now Energy Safety Canada (ESC). The renaming came about when Enform merged with the Oilsands Safety Association (OSSA) in the fall of 2017. Murray Elliott is the president of Energy Safety Canada, and he paid a visit to the organization’s Weyburn office on Jan. 31, where he spoke at length to Pipeline News about the organization’s future. He was sporting a “Mission: Zero” lapel pin from meeting in Regina with the Workers' Compensation Board regarding the province-wide initiative for zero workplace injuries. He was joined by Bob Ross, long-time Saskatchewan manager for ESC. As an overview of where Energy Safety Canada has come from, and where it’s going, he said, “There was strategy work done back in 2015, early 2016. It was led by John Rhind. He was asked by a few of the different associations to look at where we are with safety and
safety associations, and where do we need to go? What does that strategy look like?” Rhind became ESC’s CEO. Ongoing work within Enform and within OSSA. That work was pulled together. A strategy was put together and approved by their member associations. Asked how OSSA came to be a separate entity from the rest of the industry, Elliott explained that it started from the initial major oilsands companies running what were essentially mining operations, quite different from the rest of oil and gas. But now the things they need to work on are similar to the rest of industry. He asked, “What are the right attitudes? The right behaviours? The right basic trajectory? “Everybody has done a fantastic job at improving safety over the years. You look back over the past 30 years and you’ll see a continual trend in safety performance improving. There’s always a recognition that what’s gotten you to this point is not what will ► Page A13
Striving for zero injuries, with fallible people Asked about recent vilification of the oil industry with respect to H2S concerns, Energy Safety Canada president Murray Elliott explained that advocacy is a role for the member organizations behind ESC. “I think if you look at the amount of effort that goes into training workers on the risks of H2S, and you look at what the track record is in Saskatchewan and in other jurisdictions, there is less exposure to workers in general as a result of the training and engineering and operating procedures put in place. “H2S can be smelled at much, much lower levels than a harmful level. There’s no doubt that nuisance odours are an issue, and those need to be dealt with, as are nuisance hydrocarbon emissions. Nuisance odours and health issues are quite different.” Bob Ross, Energy Safety Canada’s Saskatchewan manager, pointed out H2S Alive is a condition of employment. He said the Saskatchewan office has stayed open after hours at times to issue replacement tickets to those who couldn’t work without them. “This is an industry that is almost self-regulatory, in that they keep raising the bar, setting the bar, and are totally committed to it, which is showing in their statistics as well.” Ross said, “Since about
Bob Ross, Energy Safety Canada’s Saskatchewan manager, notes that safety statistics have substantially improved in the energy industry. File photo 2002, we’ve seen a 67 per cent reduction, a steady decline in lost time injury rates. This year, in 2018, all four of our rate codes that we look after, have seen a decline. The greatest decline of any industry in the province was the operation of our oil wells. The biggest flow of cash return on premiums was the actual drilling industry. Right now, this is only time in the history of the oilpatch our time loss injury rate is lower than the provincial average, which is absolutely, fully supportive of where this industry is going and the commitment to health and safety.” Elliott said, “The data speaks for itself. Our industry has never been safer than it is
today. But the reality is, that’s not good enough. Until we’re truly at the point where we’re not injuring people and we’re not having significant incidents, then we aren’t happy that we’re really demonstrating that care for people.” Can you ever get to zero? Elliot said, “Many, many, many organizations and operations have demonstrated they’ve gone decades without injuring people. Will we get there tomorrow? No. But this is about, like WCB, Mission: Zero, there can be no other target than getting to zero. That’s a combination of eliminating the hazards and having the right workplace culture.” And human nature, young, drunk or stupid people? Fallible people? “You’re not going to make everyone into saints. That’s where you need the right kind of safety net, and multiple barriers in place, such that a single person slip is not the only barrier to having a bad outcome. So when you do have incidents, make sure you learned from them, and what failed. Nothing is because of just one action. It’s a series of actions. If you can intervene in any point in that, that’s really the goal, so that one slip up from one individual cannot get you to serious mishap.”
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PIPELINE NEWS March 2018
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Seeking commonality in safety standards and training in the oil and gas industry ◄ Page A12 get you to the next. And so it was that strategy to look at what things we need to do, how we need to do it, and how do we need to be resourced, in order to make the next step towards that common vision of no injuries and no serious incidents.” That strategy led to the merger. It didn’t happen in 2016 due to the oil economy at the time. On Oct. 2, 2017, the merger took place, with Elliott and Rhind coming in Sept. 1. “I come from 31 years of experience with Shell. I’ve worked coast-to-coastto-coast in Canada, all within Canada,” Elliott said. He was general manager for the greater Deep Basin area, and prior to that, vice-president of health and safety for heavy oil, and senior health and safety person for Canada with Shell. OSSA was a very small organization that did almost everything through third parties and contract work, or, like Enform, fostering
the facilitation and collaboration amongst industry players. Enform had roughly 120 people on staff, and OSSA had three. When asked why they didn’t simply stay as Enform, Elliott replied, “What we are really signalling is actually a change of mandate. Enform was an organization and the majority of what it did was training, as did OSSA. There was also some key work leading the collaboration to put more guidelines in place, more interventions. “What’s different with this Energy Safety Canada is that we are really getting into the space of being far more proactive and leading safety.” They’re not going to be lobbyists. He explained, “We will not become an advocate. What our goal is, is to become the trusted safety authority, and by that, we expect that we will get asked to engage in the various governments. But we will not become an advocacy association. Our various associations, who
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are really the owners, are the advocates.” Better outcomes on worker safety “Where we are playing is really about getting better outcomes on worker safety. You’ll see a lot of things right now about the young worker and vulnerable worker. Historically, you can look back and every time there’s been a price crash, coming out of recovery, you see injury frequencies come up. That’s either new workers or vulnerable workers coming back in. So we put a lot of work into educating companies and employees about those pitfalls,” he said. He said they’re working very hard to prevent injuries through their various programs and associations. “Everyone shares that goal of trying not to hurt people. It’s really putting the focus on getting the right people, and making sure they have the right kind of people to do things safely.” If there’s a surge in activity, do they have the capacity to handle additional
Murray Elliot is the new president of Energy Safety Canada. Photo by Brian Zinchuk training of new workers? He responded by saying 80 per cent of all their training gets done by authorized training providers. “Through all our authorized providers, we have tremendous capacity,” he said. “The bottleneck is always going to be on-the-job, front line supervisors and skilled mentors to bring in workers. That’s where the challenge will always be.” Where does Saskatchewan fit? Given Saskatchewanbased oil producers and service companies often
express concern about an Alberta focus in most industry organizations, where does Saskatchewan fit in Energy Safety Canada? Elliott responded, “I’ll be here, as needed. We’ve got an incredibly strong Saskatchewan presence with Bob (Ross) at the helm here. “Every worker is important. To recognize (the industry) it’s 10 times bigger in Alberta, that means that we can put a lot of resources around driving some of the things we’re driving, and we can benefit the much-smaller British Columbia and Saskatchewan industries; tools, techniques, training,” he said. “So we can actually provide better service, overall, by having this all as part of a larger organization. There’s no doubt, every worker’s safety is critically important to us. We’re trying to drive a number of things to make a difference, and that’s every
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bit applicable to Manitoba, Saskatchewan or the East Coast.” “Ninety-nine per cent of everything people do is no different than just across the border,” he said, noting there are some slight differences in regulations between jurisdictions. “We have mobility of workers. We have workers that can be in Fort St. John, B.C., one day, two days later they’re working in Estevan. What we’re trying to do is try to drive simplification and standardization as much as we can, such that those workers can work anywhere, have the same kinds of expectations, the same kinds of clarity, and eliminate some duplication because of differences that aren’t real,” he said. Ross said, “That was one of the main reasons in 2009 (Enform) opened up shop in Saskatchewan, to provide better services to ► Page A14
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PIPELINE NEWS March 2018
Striving for the highest safety standards, not lowest common denominator ◄ Page A13 our employers here. To hear the voice of them, as well, too, which we do through our advisory committees. The voices and the needs of the provincial industry are definitely heard and heard very clearly. They also hold a seat, Saskatchewan does, on the board.” Strategy Asked what are the issues facing ESC and the industry over 2018-2019, Elliott said, “We have a strategy from our board that’s five years, tied to the merger. It’s the data-driven decisions, agreed standardization. One of our core deliverables is to get one common set of safety rules and life-saving rules. A significant number of companies have adopted these things, with slight difference. We want some commonality in that.” As an example he said, “Basic things like you don’t work at heights without fall arrest.” “These are all about caring. We care enough that if people aren’t willing to follow these rules, which are also occupational health and safety regulations in every jurisdiction we work in, if people are not willing to follow them, they’re not going to be employed,” he said, focusing on these few things where people are getting killed if they aren’t followed. Common safety orientation “Once you get common safety rules, then you can put in common safety orientations,” he said. “Most companies require people to
do some kind of orientation, often before they even show up on site. These things are slightly different, but they’re subtly different, by the time a lot of the workers have done literally 10 of these things, they couldn’t tell the difference at different sites. We actually lose the value, and we, quite frankly, lose the workers on what’s important,” Elliott said. By having one common safety orientation, they could have better outcomes and reduce duplication. He noted this is already in place in the oilsands mining and upgrading sites. It could result in a ticket, similar to what the organization already does with H2S Alive. “Our idea is to build this out to the rest of our industry, so we’ve got a safety standards council that we’re standing up that will help us. These are senior executives from across the all the industry,” Elliot said. “We’ve talked to some small companies that are doing literally 30 to 50 of these,” he said, explaining the juggling act they have to do to ensure their workers have proper orientations for diverse clients. “There’s still going to have to be sitespecific when they show up, to talk about specific hazards, muster points, alarms,” Elliott said. Given the varying standards across the industry, he expects the standards will be at the high end, not the lowest common denominator.
Elliott said the oilsands has a 4 1/2-hour classroom lecture for this orientation, and they’re piloting a 3 1/2-hour online version. “It will be less than a day. Our expectation is that it will for-sure have online, and likely have a classroom (version),” he said. The oilsands version is a one-time thing, and not refreshed on a cycle like H2S Alive. ESC will assess that for this program. “I think if you have experienced workers, this doesn’t need a lot of repetition.” Standardization is something within industry control. They’re not trying to change legislation or harmonize it. “We are working towards making sure we have single IDs for workers and are really able to allow mobility. We are breaking down barriers say between the oilsands and the rest of the upstream business, where we had different fall arrest courses. “Identification and all the training that goes with it. So (with) unique worker IDs, their training goes with them, even if they change employers, even if they change sectors,” he explained. “We are trying to break down any barriers. Clearly, we need to comply with all the regulations and legislation in each of the jurisdictions. But where it’s within our control, break down those barriers; make it simpler, make it easier and more effective. “We still want the outcomes. We
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want workers trained and able to get to work, but we want to do that in the most efficient, effective way possible,” he said. Broader issues The health of the industry and pace of growth or contraction is always a concern, Elliott said. “It’s always something we are careful to watch for is legislative change.” That can have big impacts, and changes can come in quickly. Did we lose traction, on the safety front, both in attitude and actual performance with regards to safety over the last four years? Elliott said, “Data will tell you that performance has improved. It’s not that people have somehow skimped by on lower performance. There’s a lot of companies that put even more focus on it, because they can’t afford to lose the capable people they’ve got for a period of time while they recover.” He noted that companies look at the safety records of the contractors they hire. “The data will tell us we’re hurting less people, by frequency and by absolute numbers. The percentage of people that are getting injured is lower. It’s largely because you’ve got a lower percentage of vulnerable workers – green or young workers are a smaller percentage of the workforce. The challenge is, as and when things recover, is not to have those people come in and get hurt.” The Mission Zero lapel pin exactly aligns with their goals.
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PIPELINE NEWS March 2018
A15
Alberta now accepts IWCF and IADC well control certification, providing options for Sask. workers By Brian Zinchuk Regina – In Western Canada there are now three well control training standards that are accepted. On Jan. 31, the Alberta Energy Regulatory (AER) announced it revised its requirements for well control methods, well control and well blowout prevention certification to provide companies flexibility in selecting well control methods and training providers. Previously, Alberta had only accepted the Enform (now Energy Safety Canada) standard. In a press release, the AER said, “We recognize the following training providers as adequate: International Well Control Forum (IWCF), the International Association of Drilling Contractors (IADC), and Energy Safety Canada (ESC; the successor of Enform). If an operator wishes to use a different provider, they are to submit a gap analysis of the training material to the AER (welloperations@aer.ca) for a determination on whether the training is equivalent.” This brings Alberta, by
far the largest jurisdiction in Canada with a need for well control, in line with other jurisdictions, including the U.S. and overseas work. These standards have been accepted in Saskatchewan for several years. However, since Alberta did not accept IWCF or IADC training until now, the Enform/ESC course was only game in town in Alberta, and effectively, on the prairies. This announcement changes that. In Regina this past October, Javed Shah, professional engineer, and his staff with Well Control Group gave a five-day course to officials with the Saskatchewan Ministry of Economy (now Ministry of Energy and Resources) regarding well control, allowing them to become well-versed when dealing with industry. Shah heads up and owns Edmonton-based Well Control Group, one of the firms accredited to provide training in the IWCF and IADC programs. They are seeking to establish training for IWCF and IADC in Estevan in short
order. The company offers the training in St. John’s, Newfoundland, as well, for the off-shore industry. Shah, along with certified trainer Douglas Tompson of Saskatoon spoke to Pipeline News on Oct. 4 in Regina. Shah has been offering the training since 1992, and as Well Control Group since 2008. He personally holds patents for fire safe snubbing stack, automatic well control choke and dynamic low choke method of well control. Dynamic low choke method was introduced in Second Line well control training in 2010 by Enform. The method addresses the issue of exceeding maximum allowable casing pressure and leaving the well shut in and circulating out the kick from the well instead of panicking and have a blowout. “The whole world accepts IWCF and IADC certification,” Shah said. “We’re trying to expand in Saskatchewan. We think it’s a great standard, a better standard than Second Line. The IWCF live well intervention training is better
Douglas Tompson, at the front, trained officials with the Ministry of Economy, now Ministry of Resources, in October in Regina, in the International Well Control Forum. Photo by Brian Zinchuk standard than well service ticket.” “I’m a petroleum engineer by trade. I started in Pakistan. I’ve been in Canada since 1984. I’ve sat rigs, all the way from Saskatchewan to northeastern B.C. to the East Coast of Canada. I came here, to Weyburn, in August 1984. I still come to the Weyburn Unit, for Cenovus, when they need help with something. So I’ve supervised rigs in this neck of the woods for a very long time. It’s like homecoming for me.” The program requires recertification every two years, and it’s not an abbreviated recertification.
It requires the full week of instruction and a test at the end. The instructors also must recertify every two years, and those instructors must get higher than 90 per cent. All the standards being taught are recommendations of IOGP (international oil and gas producers). Drillers, rig managers, wellsite supervisor and drilling engineers take these courses. There’s a similar course for completions staff. They’re dealing with live wells, and do wireline, coil and snubbing work. Shah said, “There’s no ticket for wireline in Canada, there’s no ticket for snubbing in Canada. We offer that
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ticket for live intervention, which covers work with coil tubing, wireline and snubbing units.” He has issues with the common well service ticket, thinking it’s inadequate in comparison. The IWCF examination is administered online over computer from Montrose, Scotland and IADC exams are administered online from Houston, Texas. Shah’s phone rings around the clock for consultation regarding well control situations around the world. He spoke of a recent incident of high pressure, high temperature wells in Cameroon he consulted on. ► Page A16
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PIPELINE NEWS March 2018
Well Control Group plans to offer both IWCF and IADC certification courses in Estevan ► Page A15 Speaking about the IWCF course, Tompson said, “The course, itself, is typically a five-day course. It’s a heavy, very, very packed, five-day course. Four days are classroom and simulator, and one day is typically the exam. The classroom also has homework assignments in the evening. It’s not something you sit back in. It’s hands on, a lot of calculations. There’s a lot of content we go through. “After the first couple of classroom days, the students are introduced to the simulator.” The simulators are desktop replicas of what a driller would see at his console on a real drilling rig. The brake handle, and
its associated chain, might seem small, but when students really get into it, they’re sweating, according to Tompson. The simulator derives heavily from the concept used in aviation simulator training, having trainees deal with unexpected, worst-case scenarios. Tompson said, “I’ll tell you, a candidate may not be sitting on a real well, and he knows he’s on the 12th floor in an office tower in downtown Regina. But you’ve got those gauges moving, and you’re looking at this, and you’re circulating this electronic bubble out of the well, it sure raises my heart rate.” “It’s got all the key components on here. Those heavy slips? Those are com-
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puter slips. But (it has) all the actual alarms. You can set your alarms. You can speed your pump up. You can slow your pump down. You can look at all these gauges,” he said. “The key is you get the candidate to drill, and then all of sudden, you introduce a problem. Your goal is to have taught the student so he can identify the problem just by seeing what the behaviour of the gauges is, and then react to it, properly. What are you going to do? What is your next step? You observe them and they solve the problem according to the proper way of doing it.” Tompson added, “Guys are going to make mistakes, small mistakes. The big thing is, we want to be able to see the candidate is able to effectively identify the problem and solve the problem. There’s a sequence they have to do it in, and there’s a procedure. They
Javed Shah, professional petroleum engineer and owner of Well Control Group, has spent decades in the sphere of well control. Here he sits with a desktop simulator used for well control instruction. Photo by Brian Zinchuk need to be recording and calculating. That’s what the simulator does. And once they’ve all done that, and they’re circulating and killing the well, the simulator gives a problem out of the blue. What if, all of a sudden your pump dies when you’re killing the well? “It’s important for him to know, ‘Hey, what just
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happened? I Just lost my pump.’ Okay fine, you lost your pump. Now what are you going to do? “Can the guy successfully circulate out a kick? Can the guy identify some of the basic problems that might happen?” Tompson said. He added the simulators can be used to emulate offshore and land rigs, and they do a fair bit of offshore training in Edmonton. The course can also be offered at a drilling contractor’s office, in Weyburn
or Estevan, for example. Tompson noted these courses allow a person to work internationally, something he, himself, has done. Prior to IWCF being accepted in Alberta, having that certification allowed you to work in Saskatchewan, but you would need separate certification (Enform/ESC) to work in Alberta. “With IWCF and IADC, if they accept it in Alberta, you can work anywhere in Western Canada, plus it opens up the international.”
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PIPELINE NEWS March 2018
A17
HSE Integrated has new digs in Lloydminster and Weyburn By Brian Zinchuk Lloydminster, Weyburn – HSE Integrated has set up two new shops in recent months, one in Weyburn, and one in Lloydminster. The Lloydminster facility is a new one for HSE Integrated, according to Tyler Tollefson, general manager for Western Canada for HSE Integrated, who spoke to Pipeline News at the Weyburn oilman’s bonspiel on February 10. While HSE integrated has locations throughout Western Canada, its Lloydminster coverage was handled out of Fort Saskatchewan, staying in hotels in Lloydminster as necessary. Their new facility opened officially on Jan. 1, 2018. They moved into a brand-new 8,000 square foot building on the one northwest corner. Right now there is a manager, dispatcher, and approximately 10 field staff working out of Lloydminster, but Tollefson adds that they are hiring
Ryan Bobier is the Weyburn station manager of HSE Integrated. They moved into this new location, a former agriculture dealership on the southwest corner of the city, on Oct. 1. Photo by Brian Zinchuk daily. He expects staffing in Lloydminster to top out around 15 to 20 people. “We’ve got a client in the area we do a lot of work for,” said Tollefson. He added the is stretching out into the North Battleford area. The company has worked with the client in the past. “We’ve always looked
at it, and we’ve had our foot in the door,” he said. An important factor has been the availability of real estate in Lloydminster. Tollefson said that rent and lease prices have made a presence there more viable. He noted there is a lot of available real estate, and they chose a new facility. Their Lloydminster
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staff are currently looking after high angle rescue, H2S supervisors with air trailers, and safety watch. In this area they are not providing much in the
way of mobile treatment centres sitting on lease. Working in Lloydminster, the Border City, H2S requires staff that are registered to work in
both provinces. “We’ve had some people come over from other companies,” Tollefson said. He noted that ► Page A18
Trinadad looking at its future ◄ Page A8 directors, chaired by Trinidad’s lead director, Ken Stickland, to facilitate and lead the review. The board has engaged TD Securities Inc. and Blake, Cassels & Graydon LLP as its financial and legal advisors, respectively, to assist it with the review. Trinidad said in a release it is in a strong financial position, generating free cash flow from its core business to fund its previously announced capital program, and also has additional liquidity through its existing credit facilities. Throughout the strategic review process, Trinidad said it will continue to execute on its business strategy. Trinidad’s management team and the board are committed to acting in the best interests of the company and believe this will ultimately benefit shareholders, staff and customers.
Trinidad said it will continue to provide industry-leading solutions and high quality operational performance for its clients. The company does not intend to periodically or otherwise disclose developments with respect to the strategic review process unless the board has approved a specific transaction or action plan, or otherwise determines that disclosure is necessary or appropriate. Trinidad is one of the largest drilling contractors in Canada, with 68 land rigs, making up 11 per cent of the total fleet. They also have 66 land rigs in the United States, six in Mexico, one in Bahrain and one in the United Arab Emirates. The company was founded by Mike Heier, originally of Estevan, who was chief executive officer from 2000 to 2008, and is currently its chair of the board.
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A18
PIPELINE NEWS March 2018
Bill Armstrong Consulting wins Gainsborough bonspiel
With a shop that used to be an ag dealer, there’s more room for HSE Integrate’s equipment in Weyburn. Photo by Brian Zinchuk
New Weyburn location ◄ Page A17 some of HSE’s people working in other areas, but originally from Lloydminster region, have transferred to Lloyd. Weyburn HSE Integrated has long had a location in Weyburn, but they moved to a new facility on Oct. 1, 2017. This facility is on the southeast corner of Weyburn, in a former agriculture dealership. The two buildings provide a total of approximately 10,000 square feet. Tollefson said it is working out well, with more exposure due to their highway location. In this case, he feels location definitely makes a difference. He noted that people have stopped by as a result, and the walk-in business has
picked up a little bit. “I think, long term, it will be a good choice,” Tollefson said. “We’ve maintained a staff of about 40 people in Weyburn,” he said. The numbers have consistently been between 30 and 40 people in Weyburn. In this
region mobile treatment centres are more common, with 10 to 12 rigs working each day. They also have 10 to 15 H2S supervisors going out per day. Much of the work is in the Torquay, North Portal and Viewfield areas, but they work all over the region.
There are plenty of air packs for use in the field. Photo by Brian Zinchuk
The Bill Armstrong Consulting Rink, skipped by Bill Armstrong, won the Gainsborough 15th Annual Oil & Energy Mixed Bonspiel. From left are Bill Armstong, Jocylyn Loustel, Allan Walker and Shane Sterling. Photo submitted Submitted by Cheryl Ann Shaw Gainsborough – The Gainsborough 15th Annual Oil & Energy Mixed Bonspiel was held Jan. 12-14. Numbers were down this year, but the completive spirit was not. The social evening with door prizes and raffles was held Friday evening after curling and a roast beef supper was several for all the curlers and guests. Sunday ended with a ham supper and the final draw. The first event winners were Bill Armstrong Consulting, skipped by Bill
Armstrong. They defeated General Well Servicing No. 1, skipped by Scott Halliday. Second event winners were MayCo Well Servicing, skipped by Shane Kitz defeating Fast Trucking No. 2, skipped by Josh North. Third event winners were B&B Oilfield Rentals, skipped by Marci Beaudoin defeating Fast Trucking No. 1, skipped by Reg Renwick. It was another successful bonspiel with everyone enjoying the homemade burgers and pies. The organizers sent a thank you to all curlers, donors, volunteers and spectators.
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PIPELINE NEWS March 2018
A19
February land sale brings in $3.4 million The Feb. 6, public offering of Crown petroleum and natural gas dispositions generated $3,439,121, an average of $411/hectare. This compares to $9,551,628, an average of $695/hectare received at the last offering held on Dec. 5, 2017. The top purchaser of acreage in the province was Spartan Energy Corp., who spent $1,039,680 to acquire 18 lease parcels. The lone licence in this offering fetched $54,639, paid by Prairie Land & Investment Services Ltd. for a 1,554-hectare parcel situated adjacent to the Whitemud Second White Specks Gas Pool, 15 kilometres south of Eastend. The top price paid for a single lease was $325,347, paid by Spartan Energy Corp. for a 129.5-hectare parcel situated adjacent to the Workman Midale and Frobisher Beds Oil Pools, 20 kilometres southeast of Carnduff. The highest dollar per hectare in the offering was received from Synergy Land Services Ltd., who paid $2,523/ hectare for a 64.75-hectare parcel located within the Pinto Midale and Frobisher Beds Oil Pools,
35 kilometres east of Estevan. Estevan area The total bonus received in the area was $2,452,992, an average of $711/hectare. This compares to $5,084,478, an average of $773/hectare at the last offering. There were 52 leases posted, and 47 sold, for a total of 3,448 hectares. Top purchaser of acreage in this area was Spartan Energy Corp., who spent $1,039,679.96
to acquire 18 lease parcels. The top price paid for a single lease in this area was the aforementioned $325,346.74, paid by Spartan Energy Corp. The highest dollar per hectare in this area was received from the aforementioned Synergy Land Services Ltd. Swift Current area The total bonus received in the area was $357,675, an average of $139/hectare. This
compares to $403,051, an average of $104/hectare at the last offering. Eight leases were posted, and six sold, along with one licence in the Swift Current area. Top purchaser of acreage in this area was Elk Run Resources Ltd., who spent $150,906 to acquire two lease parcels. The single licence in this area fetched $54,639, paid by Prairie Land & Investment Services Ltd. for this 1,554 hectare
CAREER
parcel situated adjacent to the Whitemud Second White Specks Gas Pool, 15 kilometres south of Eastend. Top price paid for a single lease in this area was $90,544, paid by Elk
Run Resources Ltd. for a 194.25 hectare parcel situated within the Cantuar East Cantuar Sand and Roseray Sand Oil Pools, 20 kilometres west of Swift Current. ► Page A20
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A20
PIPELINE NEWS March 2018
CNRL buys land near Mervin
Hurry!
One of the features of curling is its highly vocal nature. Here is Brent Gedak, being quite vocal, during the SaskTel Tankard. Brent Gedak Welding skipped his team in the Tankard in Estevan Jan. 31 to Feb. 4. They made it as far as the C-final. Photo by Brian Zinchuk
◄ Page A19 The highest dollar per hectare in this area was received from Synergy Land Services Ltd., who paid $913/hectare for a 59.14 hectare parcel located within the Gull Lake Basal Cantuar Sand and Gull Lake Central Upper Shaunavon Oil Pools, 55 kilometres southwest of Swift Current. Kindersley area The total bonus received in the area was $578,155, an average of $279/hectare. This compares to $949,462, an average of $458/hectare at the last offering. Only about half of the posted leases sold, with eight out of 15 actually being acquired. Top purchaser of acreage in this area was Buffalo Hill Resources Ltd., who spent $322,323 to acquire three lease parcels. Top price paid for a single lease in this area was $140,293, paid by Buffalo Hill Resources Ltd. for a 259-hectare parcel situated adjacent
to the Whiteside Viking Sand Oil Pool, 35 kilometres west of Kindersley. This was the highest dollar per hectare in this area at $542/hectare. Lloydminster area The total bonus received in the area was $50,299, an average of $183/hectare. This compares to $3,114,637, an average of $2,565/hectare at the last offering. Six leases were posted but only two sold. The top purchaser of acreage in this area was Canadian Natural Resources Limited, who spent $29,523 to acquire one lease parcel. This 210.44-hectare parcel is situated five kilometres west of the Mervin South Mannville Sands Oil Pools, 10 kilometres southeast of Turtleford. The highest dollar per hectare in this area was received from Baytex Energy Ltd., who paid $321/hectare for a 64.75 hectare parcel located adjacent to the Freemont South Colony Oil Pool, 25 kilometres west of Cutknife.
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