Pipeline News January 2020

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Day of Measurement

The Canadian School of Hydrocarbon Measurement held a school at Estevan’s Southeast College on Nov. 27. Keynote speaker Kendal Netmaker spoke about overcoming adversity. See related story Page A10. Photo by Brian Zinchuk

Ministers talk with Ceres at Northgate

Day of Measurement A2

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PIPELINE NEWS January 2020

Ministers meet with Ceres to talk about opportunities at Northgate

By Brian Zinchuk Northgate – Ceres Global Ag is continuing to develop its Northgate Logistics Hub on the border between Saskatchewan and North Dakota, and energy is becoming a growing part of that.

The project was intended to begin as a grain terminal and crude-byrail hub, but it went into operation just as the oil downturn hit and crudeby-rail facilities were being mothballed in several places across Saskatchewan. Therefore, the crudeby-rail plan has not been implemented to date.

However, in the intervening years, the shipment of natural gas liquids, propane, in particular, has grown to the point where in June, 2019, Ceres created a 50/50 joint venture with Steel Reef Infrastructure Corp., an oil and gas infrastructure company, which owns operates several gas plants in the province of Saskatchewan. Several of those plants are within a 16 to 60 kilometre radius of the Ceres terminal.

The joint venture is known as the “Gateway Energy Terminal.” It began operations July 1, 2019.

On Dec. 12, Government Relations Minister and Estevan MLA Lori Carr and Highways and Infrastructure Minister Greg Ottenbreit came out to the facility to speak to Ceres president and CEO Robert Day, along with several other Ceres and Steel Reef officials about developments at Northgate. The Ceres officials came up from their headquarters in Minneapolis. There was also representation from the City of Estevan.

Paul Ferguson is general manager of energy and industrial products with Ceres.

“We’re going to talk to the Ministry of Highways and Infrastructure about what we’re doing here and how we can align with the government’s goals, and how to maximize opportunities,” Day said prior to their meeting with the ministers.

“The focus of our

These were the representatives at the table on Dec. 12, talking about how the Ceres Northgate Terminal can be used to develop Saskatchewan’s economy. From left: Craig Johnston, City of Estevan; Alvin Chin, Steel Reef; Paul Ferguson, Ceres; Minister of Highways Greg Ottenbreit; Minister of Government Relations Lori Carr; Jeremy Nielsen, Ceres; Robert Day, Ceres; Mike Meyer, Ceres. Photo by Brian Zinchuk near-term growth is more around the non-grain and energy industrial products and how we create opportunities to open into new markets for those product segments.”

Carr said, “I’m here to see the facility, and the opportunities for economic development in the area, and how we might tie that into maybe some businesses that could set up around Estevan and make it work.”

Ottenbreit said, “From my perspective in Highways and Infrastructure, rail is a very important part of our infrastructure in the province.

We want to get a good handle on what the facility does, what it has to offer, how it interacts with the rest of our rail infrastructure in the province.

And, of course, also roadways, as there is some product brought here by road to be shipped by rail.

“As we are an exportbased economy, exports are very important to us.

So it’s every important to keep abreast of these facilities, opportunities, and where we can expand opportunities for export.

We’re bound by not having access to tidewater, so we have to be very supportive and very aware of these different infrastructure advantages that we do have, to take advantage of those for benefitting our export-based economy and to benefit the people and the industries in our province.”

Ottenbreit said Saskatchewan will focus on pipeline development,

but added, “We envision a place where we produce more than we could ship by pipeline, possibly. Always having that rail access is very important, as it has been a foundation in getting our oil to market, as well as pipelines. I see both of them serving a definite benefit.”

Unique facility The Northgate site is unique in that it is not on the Canadian National or Canadian Pacific railways. Instead, it has a loop track (two, actually) as well as ladder tracks, connecting directly to the American BNSF Railway right at the U.S. border.

With significant customs controls in place, the facility is positioned to allow direct shipments into the American heartland, or from it. They ship Canadian grain, oriented strand board (a late 2018 addition) and propane out of Northgate. Agricultural fertilizer and oilfield chemicals are shipped into the site.

“We’re looking to expand,” Day said when asked about their NGLs handling. “There are more NGLs produced in the Saskatchewan market that we could be providing a market for, and we expect production in this region will continue to increase in the years to come.”

“In this joint venture, we are 50/50 partners.

They (Steel Reef ) have an obligation to manage the commercial part of the joint venture, and we support their commercial efforts when we can add

value. Meanwhile, Ceres is responsible for running the operations here at Northgate.

“Steel Reef also leads any effort around infrastructure development,” Day said.

NGL expansion considered Right now, the NGLs are being transloaded, in other words, from a truck, through a meter system, to the rail cars. Using that system means rail cars can only be loaded during the hours the terminal and its gates are open, and that isn’t 24/7.

“Right now, we are evaluating whether it makes sense to add infrastructure that would make our truck-to-train loading more efficient.

Specifically, we’re looking at the benefits of enabling 24-hour truck unload, faster train loading, etc. No decisions have been made yet, however, this is where we are leaning today. Ultimately, the goal is to connect by pipe, into Northgate. That’s the goal,” Day said.

Steel Reef ’s nearest gas plant, at North Portal, is 16 kilometres away.

That plant also connects into the company’s North Dakota gathering system and Lignite gas plant via a short, but important, international pipeline. “There haven’t been any decisions made yet.

North Portal would be a logical one, but that could change,” Day said.

The concept being considered right now would have an unloading site and storage bul-

lets built just off Highway 9, near the existing approach to the highway.

This would allow trucks to unload there, into storage, without them having to come into the main terminal area. This would also allow for some surge capacity, Ferguson noted.

Loading trains from bullets is also faster than transloading from trucks.

“Our ultimate goal, at Northgate, is to have the infrastructure needed to make the supply chain through Northgate as low cost and efficient as possible,” Day said.

As for timelines, Day said they are evaluating the truck infrastructure for summer/fall 2020.

Alvin Chin, a business development representative with Steel Reef, said, “We are looking at it right now, but no decisions have been made.

We’re really happy with our partnership with Ceres. They bring a lot to the table in terms of helping extend our service offerings for our customers by safely rail loading the natural gas liquids that are available.”

As for the ministerial visit, Day said, “We’re hoping to get more clarity on what their goals and objectives are, and how we can potentially help them achieve those goals.”

Crude-by-rail considerations This meeting occurred a few days after a crude-by-rail derailment near Guernsey, Sask.

As for the possibility of crude-by-rail, Day said,

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“We continue to investigate that as an opportunity. It’s a dynamic market, put it that way.”

“We’re not currently planning to move any of these products, by rail, in Canada. At Northgate we are connected only to BNSF, and we know BNSF goes to extremes to ensure the safety in the movement of these products.”

“There have been times, in recent history, when we got very close to moving crude oil through Northgate. There are so many factors that can impact that opportunity, positively and negatively, which makes it very difficult to determine whether or when and opportunity is going to materialize.

Politics, market volatility and currency movements all influence the attractiveness of this opportunity. We’re confident at some point in time, in the future, eventually there will be an opportunity.”

Asked if US$58 per barrel of oil was the issue, he said, “For us, it’s more about the spreads than the absolute value of oil.”

Ferguson said that Saskatchewan is a resource-rich province.

“This facility provides that great access point for Saskatchewan products.

That example of lumber – this product is trucked nine hours to get on the BNSF Railway.”

“We encourage other companies looking to find new markets in the U.S., to explore working with us here in Northgate,” Day said.

PIPELINE NEWS January 2020

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A Day of Measurement takes place in Estevan

By Brian Zinchuk Estevan – After a trial run last year, a full-fledged “school” was held in Estevan on Nov. 27 by the Canadian School for Hydrocarbon Measurement, which is in turn operated by the Canadian Institute of Hydrocarbon Measurement.

The event was held at Southeast College’s Estevan campus. One of the stated aims of the development of that campus, formerly known as the Saskatchewan Energy Training Institute, was to

bring high-quality energy-related education to southeast Saskatchewan, so that workers didn’t have to travel great distances to Calgary or Edmonton.

That was definitely the case with this event.

The keynote address was by Kendal Netmaker, who spoke about overcoming adversity and thriving.

He was followed by a session from the Ministry of Energy and Resources, speaking to the whole group.

The rest of the day was broken up into four, and at times, five concurrent

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training sessions broken up by knowledge level – novice, intermediate and advanced. Roughly half were at the intermediate level, but don’t let that fool you.

For someone who doesn’t work directly in instrumentation, the novice level sessions could seem plenty advanced.

Some of the topics included measurement, navigating the regulator changes in uncertain times, custody transfer meters and wellhead technology.

One session was called, “High cost has nothing to do with measurement uncertainty.”

Pretty much every square foot of available space within the lobby and upper level was filled with exhibitor booths, 20 in total.

Doug Martens of Estevan Meter was one of the organizers and acted as MC of the event. He said, “I think it went pretty well.”

In his opening comments, he said, “The political reality is we’re being forced to be better at what we do.”

He noted last year’s event was more ad hoc.

This was their “first official

stab at it,” he said.

There was just shy of 200 people in attendance.

The maximum capacity would have been 240.

“We try to appeal to varying levels of expertise,” Martens said. Attendees included oil company personnel, service company workers and even regulators from the Ministry of Energy and Resources, several of which were present in the measurement 101 session. Martens noted that part of the point of the event was so those involved could have dialogue and open communication.

One of the underlying themes was the final

Intricate’s Colin Gendre, left and Jacey Todd staffed the company’s booth during the Canadian School for Hydrocarbon Measurement. Photo by Brian Zinchuk implementation of PNG Directive 17, which is to be fully in place by April 1, 2020.

Martens noted that similar schools have been going in in Alberta about

15 years, and the International School of Hydrocarbon Measure has been held in Oklahoma since 1924.

To that end, Martens said, “There will be another one next year.”

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PIPELINE NEWS January 2020

PIPELINE NEWS

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When does hereditary power apply, when it comes to pipelines?

We have a bit of a problem with our democracy here in Canada, and it stems from yet another pipeline dispute.

Despite a court injunction which basically discredited the power of Wet’suwet’en First Nations hereditary chiefs in British Columbia, they still are acting against the Coastal GasLink project. Not long after New Years, they served an eviction notice to the company working on the project in northern British Columbia.

As the National Post put it on Jan. 2, “The Supreme Court of British Columbia has ruled that Indigenous law is not necessarily Canadian law in a decision that will enable more construction work on the $6.6-billion Coastal GasLink pipeline despite some First Nations opposition.”

For those who aren’t familiar with it, Coastal GasLink is an integral part of the larger LNG Canada project, by far the largest liquified natural gas (LNG) project in the country. Once complete, it will essentially launch a new LNG industry: new trade, new markets, thousands of new jobs and thousands more of maintained jobs, drilling for decades to come, billions of dollars in investments, revenue and taxes. Coastal Gaslink is the essential pipeline which will feed gas from northern British Columbia to the massive LNG plant being built at Kitimat, on the coast.

It wouldn’t be too far a stretch to compare it to the completion of the Canadian Pacific Railroad to the West Coast, which allowed Canadian grain and other products to reach Pacific Rim markets. It will fundamentally change Canada, and for the better.

With all that in mind, it’s getting pretty hard to swallow opposition from people whose position of power is a hereditary one. After all, we are a democracy as well as a meritocracy, right? Shouldn’t the elected leaders of those First Nations, who support the project, have the final say for their people, not someone who got the luck of the draw in the gene pool?

And if you consider the recent injunction from the British Columbia Supreme Court, you would get that impression.

The National Post noted, “There has been no process by which Wet’suwet’en customary laws have been recognized in this manner,” the judge wrote. “While Wet’suwet’en customary laws clearly exist on their own independent footing, they are not recognized as being an effectual part of Canadian law.”

But therein lies the flaw in our democracy: the courts are courts of the Crown. In Saskatchewan, we would call that level of court the Court of Queen’s Bench.

And that Crown, the embodiment of our collective

government, is metaphorically and physically held up by Queen Elizabeth the Second. Indeed, the Canadian Oath of Allegiance, which our Canadian Armed Forces members swear when being enlisted, goes like this: “I, (full name), do swear (or for a solemn affirmation, “solemnly affirm”) that I will be faithful and bear true allegiance to Her Majesty, Queen Elizabeth the Second, Queen of Canada, Her heirs and successors according to law. So help me God.” So if you were to take the position of the hereditary chiefs, whose power is, by definition, hereditary, they can just as easily argue that the federal Crown is also hereditary. You know, those heirs and successors?

And it’s not just soldiers, sailors and airmen who take that oath. If you hold public office, odds are you, too, have sworn that oath. That would include the judge sitting on the bench.

You’ll note they’re not swearing an oath to the hereditary chiefs of the Wet’suwet’en chiefs, are they?

Quite the rhetorical quandary, isn’t it?

How can the Crown, its ministers, governments and courts, rightly claim sovereignty over unceded territory over people who recognize their own inherited power structure? If one has no validity, should the other? That calls into question our entire notion of constitutional monarchy.

This would be much easier to argue if we were simply a republic, without a queen, without a Crown.

The reality is in life, whomever has the power, keeps it.

In this case, the government of Canada, through its various arms, provinces and courts, have the power. And that power includes the ability to use the police to enforce injunctions imposed by its courts.

One way to address this is to finalize treaties and land claims with all those First Nations in British Columbia we never really got around to. That would be a starting point, and likely the easiest.

The other option would be to have a little revolution, depose our monarch, entirely change our way of government, and become a republic.

It’s not hard to figure out what the simpler solution is.

In the 21st century, the idea of hereditary power is an anathema. But we kinda sorta like it when it comes to the Queen. And if we don’t like it, we just live with it and go on with our daily lives.

Who would have thought a pipeline protest could lead to questions of the validity of our entire form of government? Apparently, it has.

PIPELINE NEWS January 2020

If you want to scare kids about the end of the world, let’s really scare them I’ve heard a few people mention the impending turn of the decade, that perhaps this will be another “Roaring Twenties.”

But for some of the youngest among us, it may feel like a countdown, as in, they have 10 years left to the end of the world. The deadline, as in “dead,” literally, is 2030.

Two months ago, both of my kids told me they had heard other kids talking about how climate change was soon going to meazn the end of the world, that they expected to die soon as a result.

Then a few weeks ago I was at an Energy Safety Canada safety seminar in Weyburn, and one of the participants noted how their grandkids had heard or said similar things. Several other people piped up, echoing the concern.

As I type this, the lead story on the National Post app carried this headline: “‘We’re going to die’: To-

ronto mother says young daughter terrified by school presentation on climate change.”

Apparently, that Toronto kid isn’t the only one. This is becoming a widespread phenomena.

These climate doomsday forecasters need to take a lesson from the Cold War. If you want to scare the bejesus out of little kids in school, you don’t talk about melting ice caps and rising oceans. You teach them how to duck and cover under their desks when they see a brilliant flash, expecting that those desks and the bubblegum under them will protect them from the Bomb.

Hell, show them some nuclear tests from the Nevada Test Site and Bikini Atoll on YouTube. Show them how to really make an island disappear, not with a rising ocean, but with 15 megatons of righteous fury!

(The Castle Bravo test is one of my favourites. They figured it would be four to

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eight megatons, but someone goofed and it ended up being 15.) The Ivy Mike test also made an island at Enewetak Atoll vanish.

But if you really, really want to convince them your life will soon end, show them the film of the Tsar Bomba. That’s the Soviet nuke that came in at 58 megatons, whose shockwave was detected on its third trip around the world. And then tell them the Soviet scientists actually limited its output by half, since they were afraid of the enormous amount of fallout that would result from the 100 megaton, full-fledged weapon.

Then you can tell them about the string of radar stations, like the one west of Yorkton, that were built to detect those Soviet bombers on their way to destroy us all. And when they’re quaking in their shoes, kindly inform them that the bombers wouldn’t matter anyhow, because it would only talk about a half hour for So-

OPINION

FROM THE TOP OF THE PILE

By Brian Zinchuk

viet intercontinental ballistic missiles to get here.

THAT, my friends, is how you properly scare young kids into thinking the world is going to end.

The reality is that not much of the above has gone away. Yes, the number of nukes out there has been greatly reduced, and most are much, much smaller than the city-flattening five, 10 and 25 megaton whoppers that were common in the 1960s. But there’s still plenty of megatons around to make us all glow in the dark. And the nearest active missile silo is precisely 50.0 kilometres from my front door. I checked on Google Maps.

As a child of the Cold War, I never did go through a duck and cover drill. I guess by that point, most of society realized the futility of it, so they never taught it were I grew up (I got a tour of the Yorkton radar base in Grade 3 instead). In cleaning out the old air cadet hall in North Battleford around

2006, I found an early1960s era nuclear survival guide issued by the government of Canada. Obviously some kids, a generation before me, were taught these things here.

Now we have Greta Thunberg. As she told the United Nations, “This is all wrong. I shouldn’t be up here. I should be back in school on the other side of the ocean. Yet you all come to us young people for hope.

How dare you!

“You have stolen my dreams and my childhood with your empty words. And yet I’m one of the lucky ones.

People are suffering. People are dying. Entire ecosystems are collapsing. We are in the beginning of a mass extinction, and all you can talk about is money and fairy tales of eternal economic growth. How dare you!”

No wonder kids are scared.

Yet somehow, mankind has survived the impending nuclear holocaust. And if,

indeed, we are changing the climate, we will survive that, too.

Oceans have risen and fallen for hundreds of millions of years. Nearly all the 3,400 metres of sediment under my feet in Estevan come from being at the bottom of an ocean. At the most recent glacial maximum, you could walk (on ice, mind you) where the Hibernia oil platform is currently sitting in 90 metres of water. First Nations learned how to adapt to nearly all of Canada, as it was covered with ice 20,000 years ago. They didn’t have the benefit of modern technology or heavy equipment, like we have today. If the oceans rise (some more, as they have since 20,000 years ago), we will figure out how to move a little further uphill.

No matter what Greta tells our kids, the world will not end.

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

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PIPELINE NEWS January 2020

Cha-ching! Why are meters important? They’re our cash register

By Brian Zinchuk Estevan – If you want to get someone’s attention, start by talking about how they’re getting paid.

Brad Perin is corporate measurement coordinator with Keyera. He started his presentation called “Measurement 101” with this simple statement: “Why are meters important? They’re our cash register.”

“It’s how we determine we get paid.”

The Canadian School of Hydrocarbon Measurement held a “school” at Southeast College in Estevan on Nov. 27. Perin was speaking to a novice level, and the room was

filled with operators, instrumentation people, production accounting, engineers and regulators.

“If we have bad measurement in, we make bad decisions and bad choices, he said.”

He pointed out that one erroneous meter operating for two years could cost $200,000 to $300,000 that has to be reallocated.

After all, he noted, “If we short someone, we overpaid someone else. And that person never calls and says we’ve paid too much.”

Production accounting needs to be kept in the loop if you shift flows between plants, Perin said.

“Why do we cali-

brate?” he asked, then held up a bent, defective plate.

Such defects can result in millions of dollars of misallocated income. In one example, he said $3.4 million was affected over a 30 month period.

Charts have limitations at well, he said, providing examples of problematic charts at the low end and maxed out at the other.

“Electronic measurement is much more accurate than a chart,” he said, reminding those present to make sure your range matches your chart, and the range should be checked once per year.

Orifice plate meters have “so many problems,”

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Perin said they’re not as good as modern technology.

They can have issues with debris, build up, can be bent or warped. Sometimes the plate can be inserted backwards. The result can be lower readings of up to 25 per cent.

Keyera uses flow conditioners regularly.

“Maybe it’s time to look at a new technology like ultrasound meters instead of orifice plates.

As for liquid meters, he gave an example of someone doing temperature corrections, but doing it twice.

A case of having “spun the meter,” means gas passed through a liquid meter, and may have damaged its bearings. As a result, it needs to be repaired and “proven.”

“It’s critical the proving part becomes part of the repair,” he said.

When it comes to vor-

Brad Perin spoke about measurement 101. Photo by Brian Zinchuk tex meters, low flow can hit the cutoff, where it is flowing, but not recording.

“When proving a meter, you need to use consecutive runs,” Perin said.

The most important meters are LACT, or lease automatic custody transfer, he said. “We are paying people on what those meters say.”

He noted that Measurement Canada only ap-

plies when shipping to a “non-knowledgeable” parties.

With regards to density, he pointed out that change in pressure can affect density.

Keyera uses a lot of Coriolis meters, he said, adding stiffness of the tub is a factor with Coriolis meters.

“Analysis is as important as the metering devices on your lines,” he said.

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PIPELINE NEWS January 2020

A7

Matchmaker, matchmaker, make me a match

By Brian Zinchuk Okotoks, Alta. – Matchmaker, matchmaker, make me a match. Find me a find, catch me a catch.

Those are the opening lyrics to a song in the musical Fiddler on the Roof, but they could easily apply to the actions of Energy Auctions Inc., which has spent the last year going beyond its usual business of selling oilfield equipment. Since January, 2019, the company has been working on the sales of entire companies.

“Like everyone else, we diversified over the years,” said Marlon Ellerby, owner, by phone on Dec. 13. Over the years they had different oil and gas service companies ask if anyone was interested in them, or if there was someone they could buy out. He was joined by Chad Carbno, who is looking after this part of the business.

“We’re as busy as busy can be,” he said.

“We have Alberta companies looking into Saskatchewan. Saskatchewan’s busier, obviously. A little

more friendly environment as opposed to what the environment was with the previous government. I think that’s probably attracting some of the Alberta buyers into the Saskatchewan market.

“If you can believe this, we have some U.S.-based companies looking to buy here, whether into Alberta or Saskatchewan, which is really odd, because you would think it would be going the other way with everything going on.”

That coincides with a growing trend in the industry – that Texas isn’t as attractive as it once was.

Ellerby said he had recently spoken to someone who said, “The big bash is over down there. He said it’s coming to a grinding halt.”

They are essentially acting as brokers, putting together deals. “We have a division within Energy Auctions, called Marnet Consulting” he said, noting there is an advantage of a ‘Division of Energy Auctions’ rather than creating a

new entity. This way those who are familiar with Energy Auctions will be assured they will be still treated with the trust they have always known.

“Chad’s job is to find companies for sale and companies that are buying. If you have a valve company, and we have a company looking for a valve company, Chad will phone you and we’ll start the ball rolling. Do you have a succession plan? Do you actually want to sell?

Once we have that in place, we’ll put together the proper documents between us and then start working on the forensics.”

Virtual box Important information needed includes the financials of the company for sale, and its history, to be put together in an “virtual box” to hand over to the potential purchaser.

“We have our own legal counsel we use. We have a third-party accounting firm, and we have a document writer that will put everything together into a folder

that’s presentable,” Ellerby said.

They also have a business valuator to determine the value of the business.

It’s important to put together a presentable offering. This can mean using other accounting firms or their own.

“I want them to be able to open up the email or Dropbox and it’s simple.

If they want to know the EBITDA, it’s right here. If they want to know historical financials or asset values, all of that will be easy to get to and easy to read.”

Ellerby noted that companies will do their own due diligence. “We are not in any way, shape or form warrantying or misleading the buyer by saying these guys are worth this. We don’t do that.”

“They have to do their own forensics. Chad is very clear on that, and so am I.” Asked who pays their fees, they responded that the seller pays. “We take a fee for selling,” Ellerby said, similar to how they sell hardware.

“A lot of companies really appreciate our support and our system,” Carbno said. “A lot of these guys are skilled masters at running their business but have not put a lot of time into succession planning. They may not know how to sell their own business or how to market it, or who to contact to help.”

As an example, Carbno said, “They might have a $30 million business, but don’t have a succession plan, they’re not 100 per cent sure someone can take it over within their company. They want to cash out, but they don’t want to close up shop and not look after the people that have been with them for 20 years. So they don’t know what to do. They don’t know how to sell it, or where to start. Where we come in is we give them structure, help them understand all the documents and what they’re going to need. And then we go out and try to make that match.”

Ellerby noted that’s not always the case. Some companies are more prepared for

transition than others. But for those who aren’t, he noted, “They spent their whole life and time and heart and soul into that business. And now they’re 55 and up and going, ‘I’m tired. I missed out on things in life and I want out. I’ve never looked at it, because I’ve always been full steam ahead, running my business. And then it comes to the day where, now what? That’s where we can come in and give them some structure and a little bit of comfort.

“This is a process. It doesn’t have to be a scary process, and there’s certain steps you have to follow in order to appease the prospective or potential buyers,” he said. “And a lot of that is legal documents to protect everybody – confidentiality agreements, fee schedule agreements, all of that stuff.

Ellerby said most companies have the highly qualified accounting firms working with them already, so their audited finances are in order, making it more ► Page A8

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A8

PIPELINE NEWS January 2020

Energy Auctions gets into acquisitions ◄ Page A7 simple to put together.

They started in January, 2019, and have had offers on two deals. “These things take a long time, especially in this market. Right now, we have seven deals on the go, and are in the final stages with a third one,” Ellerby said. “You’re looking at $5 to $200 million businesses.

These things take patience.

They are very, very cautious. If it isn’t the right fit, it doesn’t matter what the price is, they won’t do it.”

Staying on It’s typical for the previous owners to be asked to stay on for a length of time, running the business for a transition phase that can be from six to 18 months on a consultant basis, but you might also see an “earn-out”

of 12 to 36 months when the final payout is made.

The previous owner is incentivized to keep things going during that time.

Over the past decade, Pipeline News has reported on numerous buyouts structured like this, and it has been typical for the previous owners to be contracted to stay on for up to three years. However, most of those owners we’ve spoken to were chafing by the end of that term, not being used to answering to someone else.

Ellerby noted that is common, but unfortunate.

“One of the first things we say to the prospective seller, ‘They’re going to want you to stick around 12 to 24 months.’ Some say, ‘Nope, I’m planting my garden

Fighting for Saskatchewan's Oil Industry Lori Carr, MLA Estevan Constituency Office

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next year. And then there’s others that say they will stay around.”

Typically, the previous owners will be wellcompensated for staying on that period.

Carbno said some sellers are concerned there are “bottom feeders” out there, looking for depressed companies. And while there may be some that are looking for deals, he’s found a number of companies have a strategic plan, purposefully looking for this type of company in this area in

this sort of financial situation that is looking to grow.

“If a company is priced right, and has realistic expectations on time frame, there are still a number of companies in Saskatchewan and Alberta that have a positive balance sheet that are looking to invest and grow.”

The oil downturn which took hold of the industry in late 2014 has had a substantial impact on this whole process. Many entrepreneurs in the oilpatch who were getting close to

retirement had to put their lives on hold and keep going instead of selling when they initially hoped to.

In the meantime, a tremendous amount of equity and capital was eroded during the downturn.

But now, things are starting to look a little better after three brutal years (2015-2017). Ellerby said, “Balance sheets are actually pretty healthy.”

“It’s starting to change a little bit. There’s no excitement, trust me, but this is an encouraging thing

we’re seeing.”

Carbno said, “I’m hearing there’s light at the end of the tunnel. A lot of guys are cautiously optimistic about 2020, not seeing tremendous growth, but expect to grow and have better years.”

Asked what they’re looking for, the pair said they are currently specifically looking for electrical and instrument, valve, service rig, fluid transport, oilfield construction, as well as tech-related with unique and innovative tech.

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PIPELINE NEWS January 2020

A9

Spartan Controls displays its wares Estevan – Spartan Controls was one of the exhibitors at the Canadian School of Hydrocarbon Measurement during its school in Estevan on Nov. 27 at Southeast College.

Rhett Hanowski is an account manager out of their Regina office.

“We have 15 offices across Western Canada. We have three locations in Saskatchewan,” he said.

Regina, Saskatoon and Midale are the locations.

The Midale location was added in in July 2017.

“We are the leading provider of process controls in Western Canada,” Hanowski said. “We are the authorized Impact partner for Emerson Process Controls.”

“For down here, we do everything from field instrumentation, valves, pressure level, flow measurement, control valves, isolation valves. Flow measurement is a big thing here – ultrasonic flow meters, Coriolis flow meters, differential pressure flow meters.

“We’re here to support the industry in their efforts to learn more about the world of measurement. I’m excited to be here. This the first time this event is happening in Estevan, so we

have a couple members of our team doing presentations today – one on wellhead measurement, and one on truck unloading applications.”

They have approximately 40 workers between those three locations, spread between sales, service and operations.

On display they had flow computers, an electronic flowmeter, remote terminal units. Another item was the Spartan solution for truck unloading, called TruckVue. One of the driving factors over the years in the instrumentation world has been new regulations on a frequent basis. The one that’s seeing its final implementation right now is PNG Directive 17. Asked if that has been a factor for Spartan, Hanowski replied, “Absolutely, it creates more opportunity for us. We’re here to support industry with the technology we can provide. Truck unloading is a great example of that, as well as some of the work that these guys have done on wellhead management.”

Mike Rogi spoke about the truck unloading product. He said, “We put a solution together here at Spartan Controls to do the

metering from the wellhead to the batteries and to pipeline facilities. We make it so it’s fully compliant with PNG 17.”

It’s used at the offloading point for a truck terminal, where custody transfer and salespoint measurement occurs. It measures as the load comes off the truck.

“We have instruments in the process equipment to allow that fluid to come off the trucks and flow through our instrumentation. We’re able to tell them exactly what the volume is, how much oil, how much water, is in that truck.”

“We’re across pretty much the entire upstream industry. We’re at the batteries, we’re at the pipeline terminals where the trucks are bringing to the pipeline. We’re also at the oilfield waste facilities,” Rogi said.

There’s a touchpad tablet loaded with their application. “Normally it’s in a bigger enclosure with all the control equipment and terminals, and all the stuff we need to interface with the instrumentation.”

It’s a fixed panel, usually, at the unload point, in the trucker shack.

“It’s been over 30

years, we’ve been supplying truck systems. As you can imagine, we’ve had to change that over they years in order to meet compliance with things like PNG Directive 17.”

“We have a solution also for rail, which works similar to truck uses. It’s for when we’re loading rail cars for shipping to various points around North America. So we’ll load those rail cars with crude oil or natural gas liquid products.”

Rhett Hanowski, left, and Mike Rogi staffed the Spartan Controls booth.

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A10

PIPELINE NEWS January 2020

“I see potential in you,” a phrase which changed a life Estevan – The keynote address during the Canadian School of Hydrocarbon Measurement session in Estevan on Nov. 27 was delivered by Kendal Netmaker.

Netmaker spoke about being raised by a single mother, overcoming adversity and thriving, and how acts of kindness from a childhood friend’s family made a huge difference in his life.

Netmaker is from Sweetgrass First Nation, west of the Battlefords.

Netmaker has launched five businesses and has written a book called Driven to Succeed: From Poverty to Podium.

“I understand we are going through a time that tests us,” Netmaker said.

“People who continue to adapt and keep evolving are the ones who find ways to win.”

“I didn’t realize a lot of things I grew up in became normalized to me,” he said, noting he was raised in “less than ideal circumstances.”

Initially raised in Big River First Nation, he said that, at the age five, his mother took him and his three young sisters to stay at a women’s shelter. They

eventually ended up staying at his grandmother’s house, all living in a one-bedroom house for two months. The whole family slept on the couch.

They then got a twobedroom house where they lived for many years. To make room for the children, his mother slept on the couch from the time he was in Grade 1 to Grade 12.

“She made a decision she was going to sacrifice for her children, her team,” Netmaker said.

He ended up going to school in Cut Knife. They were living on welfare, and his bike would regularly get pawned. “That whole cycle of poverty would continue,” he said.

Going to school at Cut Knife, in Grade 5, he met Johan, son of the local doctor. Johan’s family paid Netmaker’s fees for him to play soccer, and would take him home to the reserve after practice.

Johan’s father kept encouraging him. Two years later, Johan and his family had to move away, but the doctor gave Netmaker’s family a 1986 Ford Crown Victoria, so they could have a car. It had a large impact on their family, allowing

him and his sisters to take part in after-school sports.

“Leaders recognize leaders,” Netmaker said, noting the doctor recognized his mother’s leadership. “They saw our leader was doing everything we could.”

Later, in Grade 10 attending school in North Battleford, Netmaker had teacher, the volleyball coach, named Doug, make a big impact in his life. In words that changed his life, that coach told him, “I see a lot of potential in you.”

“That is such a powerful phrase. We need to say that more.”

“When you believe in someone, and showing them you believe in someone, they feel they owe you something. They will go above and beyond for you,” Netmaker said.

He applied for university, and was initially rejected. He got a call to move to Fort McMurray to go to school there and play volleyball in 2005.

“When you get outside your comfort zone, you get inspired,” he said.

He reapplied to the University of Saskatchewan, calling upon the dean of education. He was ac-

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Keynote speaker Kendal Netmaker spoke about overcoming adversity. He kicked off the Canadian School for Hydrocarbon Measurement in Estevan on Nov. 27. Photo by Brian Zinchuk cepted in 2007 and began university.

While there he entered a business plan contest and succeeded. It involved doing a pitch like on Dragon’s Den. He won $6,000 for his pitch, and then $10,000, enough to start a business.

He started selling T-shirts out of his apartment.

“One of the hardest things for people, especially when you didn’t come from a lot, when you get some money, you want to spend it on something you didn’t have,” he said. Instead, he

disciplined himself to reinvest into his business.

The business grew from the apartment to an office then a kiosk, then a store, then a series of stores and wholesaling.

“The number one reason people don’t get to where they want to in life is they don’t make the initial decision,” Netmaker said.

He had to make it work, or go on welfare. “There was no Plan B. I had to make it work.”

“It only takes one person to change another per-

son’s life,” he said.

He began listening to audiobooks and got hooked on personal development, like the work of Zig Ziglar.

Netmaker is launching a charity in 2020 to be called Indigifund.

“The business that fails is one that fails to adapt,” Netmaker said.

“If you don’t like the way things are, you still have the time to change things. Use your gift. Tell your story. You’ll find people who will pick you out of your ruts.”

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Feel free to call or email for a free consultation Chad: chad@energyauctions.ca 587-998-2014 Marlon: marlonellerby@energyauctions.ca 403-815-2016

PIPELINE NEWS January 2020

A11

A12

PIPELINE NEWS January 2020

Saskatchewan’s drilling rigs are back at work for the busy season

By Brian Zinchuk Estevan – Saskatchewan’s drilling rig fleet went back to work with a bang on Jan. 6, with sister publication Rig Locator (riglocator.ca) reporting 57 rigs making hole by that afternoon.

This was a jump of 19 rigs compared to its last report on Jan. 3.

The map came alive all over the province, with clumps of rigs showing up throughout much of southeast Saskatchewan, at Shaunavon, north of

Highway 16 near Lloydminster and, most curiously, in a string along the Alberta border from Alsask to Macklin.

The net result was 54 per cent utilization rate, with 57 of 105 rigs working. That’s a better rate than Alberta, whose 45 per cent was made up of 165 of 366 rigs, or British Columbia, who had 18 of 40 rigs going. Manitoba had five of six rigs working, for a 83 per cent utilization rate.

However, the national drilling fleet has continued

its decline, dropping Dec. 10 to 532 from 549 in November. That’s down from around 800 six years ago.

Crescent Point Energy Corp. resumed its usual place at the top of the national leader board, with 14 rigs going, up from eight a few days earlier. Husky Energy Inc. was second nationally, with 12. Vermillion Energy had nine rigs going nationally, tying for fifth place. Whitecap Resources tied for seventh place, with eight rigs going, nationwide.

In southeast Saskatchewan, Crescent Point was drilling with two rigs; Ensign Drilling Rig 423 and Horizon Drilling Rig 34, side-by-side within spitting distances of the U.S. border south of Torquay. In recent years the company had focused heavily in January and February on the township 1-12-W2, southwest of Torquay, bordered by the U.S. border to the south and with Highway 350 along its eastern side. So far, no rigs have shown up there, but these two rigs are working

We’re Back!

just east of that area. They are close to Deep Earth Energy Production’s geothermal site, which is drilling with Panther Drilling Rig 2.

Crescent Point had Ensign Rig 421 at Bromhead, Ensign Rig 650 and Alliance Drilling and Oilfield Service Ltd. Rig 3 at Huntoon, northwest of Benson. Precision Drilling Rig 195 was at Melrose, northeast of Stoughton, and PD Rig 146 at Bender, 27 kilometres north of Kisbey.

In southwest Saskatchewan, Crescent Point had PD Rig 150 at Rapdan, and PD Rig 191, Savanna Drilling Corp. Rigs 418 and 419 working close to Shaunavon.

In west central Saskatchewan, Crescent Point employed Savanna Rig 420 at Plato and Rig 436 at Dodsland. These rigs, in particular, show that the company is continuing to drill in areas it has said is for sale. Over the last year it

has generally not done that in areas of southeast Saskatchewan that are, or had been, for sale.

Of Vermillion’s nine rigs, six are working in southeast Saskatchewan.

They include Stampede Drilling Rig 8 all by itself a stone’s throw from Oungre.

Tempco Drilling Company Rig 9 was at Alida, and a cluster of four rigs worked between North Portal, Alameda and Glen Ewen.

Panther Drilling Rig 3 was at Pinto while their Rig 4 was at Steelman. Savanna Rig 414 was south of Alameda, and PD Rig 205 was close to Glen Ewen.

Whitecap Resources Inc. had five rigs going spread throughout the province. PD Rig 275 was in its old stomping grounds of the Weyburn Unit. Savanna Rig 416 was just southwest of Swift Current. PD Rig 184 was south of Gull Lake, at Bench. In west central Saskatchewan, Bonanza Drilling Rig 2 was ► Page A13

Is now

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Valleyview Petroleums was back in the field over the Christmas holidays, working just west of the Weyburn Unit after a several-year hiatus from drilling. They were using the Intellidrill underbalance package, seen in the lower right, on Panther Drilling Rig 2. Photo by Brian Zinchuk

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PIPELINE NEWS January 2020

A13

Fundamentals of sampling

By Brian Zinchuk Estevan – One of the novice-level presentations on at the Nov. 27 Canadian School of Hydrocarbon Measurement featured Allen Caron of Caron Measurement and Controls and John Forchuk of Skyhigh Measurement speaking about the “Fundamentals of Sampling.”

Forchuk said after the presentation, “What we’re trying to do is get some perspective on best practices and the challenges you’ll have in the crude oil indus-

try, sampling of what we’re producing out of our wells and what we’re pumping through our pipelines. A lot of times it could be a reservoir validity, or how we’re reporting what we’re pulling out of the reservoir for production. But then, now we’ve refined it, it’s the exchange of products. So I’m the midstreamer, selling it to other parties. So we have to validate, through sampling, what we’re buying and selling, and come into agreement. That’s what the sampling is all about.”

He spoke of three different levels of testing – atmosphere, low pressure and high pressure. The first is about water cut, the second is about quality, and the third is about sales. “You can start off at the first tier.

At the wellhead, you have to determine the oil, water and gas content, to report to the owner, which is the AER (Alberta Energy Regulator) or Saskatchewan Econ. It’s a royalty statement. So I produced it, and I have to show you what I produced.

I pay royalties to the gov-

ernment (or freeholder) on that, whoever owns it.

I’m leasing it. So I need to validate your well testing and battery balancing. So it’s atmospheric, it’s a more coarse measurement.

“And then, as I move into the battery I’m doing the first level of refining. I separate oil, water and gas, and I send it in different directions. That sampling of just the oil stream, the clean oil stream, is at a low pressure, like maybe 15 PSI. I’m going to let any free vapour come off of it, because I

need to get paid for that. It’s now been put in a pipe. If it gets heated, and I let it go away in an open container, I lost money,” he explained.

These are considerations when it comes to items like blending and vapour pressures. This also impacts shipping of crudeby-rail, and in particular, the total vapour pressure of the product shipped.

On high pressure, Forchuk said, “So we’re moving out of producing a barrel of oil. In a gas plant, I’m making a barrel of condensate,

which is going to be under pressure, and you wouldn’t release it to atmosphere. It’s a higher pressure application. We need a different assembly of components to work at 1,800 PSI versus 15 PSI. And the other part, because it’s crude quality, and we’re working with larger pipes, you’re probably going to want to take a larger volume of that product, so I need a larger vessel.”

This could be up to 15, 16 litres for a sample, he said.

◄ Page A12 working at Dodsland and their Rig 1 was at Fusilier, as part of the string of rigs near the Alberta border.

Tundra Oil and Gas Ltd. had Stampede Drilling Rig 4 at Pinto. Last summer, Pipeline News received reports that Tundra had purchased some of the properties Crescent Point was offering in the Pinto area, but did not receive confirmation from either

Crescent Point or Tundra.

This may be an indicator that sale had indeed taken place.

Five rigs were working in a band from Lampman to Browning. Astra Oil Corp. had Stampede Drilling Rig 2 at Lampman.

Torc Oil and Gas Ltd. had Ensign Rig 428 on the edge of Lampman. A little to the north-northeast, Villanova Energy Inc. had Stampede Rig 1 at Browning. Nearby, Stampede 3 was drilling for

Torc. Ridgeback Resources Inc. employed Horizon Rig 33 at Clarilaw, southwest of Arcola.

Baytex Energy Ltd. had four rigs working on the western side of the province. Savanna Rig 425 was working at Forgan, northeast of Kyle. Savanna Rig 439 was at Avon Hill, east of Kindersley, and Rig 441 was at Dodsland. PD Rig 155 was drilling at Soda Lake, south of Maidstone.

NAL Resources had Savanna Rig 437 at Dodsland.

Teine Energy Ltd. had Ensign Rig 350 at Fusilier, Ensign Rig 356 and Rig 351 at Dodsland, and Rig 358 southwest of Kerrobert.

Tamarack Acquisition Corp. had Tempco Rig 5 at Milton.

A little further up along the Alberta border, Cona Resources had Savanna Rig 435 at Cactus Lake. Rifle Shot Oil Corp. was drilling near Macklin with Tempco Rig 3. Canadian Natural Resources Limited was working a little east of there, at Senlac,

with PD Rig 300.

North of Highway 16 is where Husky does all its drilling these days, and it fired up eight rigs in that area. Only one was working close to Lloydminster, with PD Rig 197 at Alberfeldy, just east of Lloyd. The rest were in two areas, around Saint Walburg and Edam.

The northern group had PD Rig 340 at Brightsand Lake, Akita Drilling Rig 6 at Celtic, and PD 183 also at Celtic.

The Edam area had Husky employing PD Rig 198 at Rush Lake, PD Rig 192, Akita Rig 8 and Rig 14 at Edam.

Nearby, Serafina Energy Ltd. was using PD Rig 188 at Prince.

The northernmost rig was up at Onion Lake, where International Petroleum Corporation (IPC) started drilling in the area it picked up from BlackPearl Resources Inc. IPC acquired BlackPearl in December 2018. They had Ensign Rig 537 turning to the right.

Other rigs drilling, but not for oil, included Ensign Rig 689 at Mosaic Potash Esterhazy and Savanna Rig 629 drilling for North American Helium Inc. at Consul.

Husky busy in northwest, Baytex and Teine in west central

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A14

PIPELINE NEWS January 2020

Saskatchewan signs MOU with Ontario and New Brunswick on small modular reactor development

PREMIER SUGGESTS NUCLEAR POWER COULD REPLACE BOTH COAL AND NATURAL GAS

By Brian Zinchuk Toronto – After months of broadly hinting Saskatchewan would be getting into nuclear power production, as well as a reference in the recent speech from the Throne, Premier Scott Moe has taken the first concrete action in that direction. Indeed, his statements in the press conference suggest Saskatchewan could go whole hog into nuclear power for electrical power generation in the coming years, possibly replacing both coal and natural gas further down the road.

While in Toronto on Dec. 1, Moe signed a memorandum of understanding with Ontario and New Brunswick with regards to the development of small modular reactors, (SMRs).

Moe, Ontario Premier Doug Ford and New Brunswick Premier Blaine Higgs released the following joint

statement: “Ontario, Saskatchewan and New Brunswick agreed today to work together to explore new, cutting-edge technology in nuclear power generation to provide carbon-free, affordable, reliable, and safe energy, while helping us unlock economic potential across Canada, including rural and remote regions.

“We have signed a Memorandum of Understanding (MOU), committing to collaborate on the development and deployment of innovative, versatile and scalable nuclear reactors, known as small modular reactors (SMRs), right here in Canada.

“SMRs could generate clean and low-cost energy for both on-grid and offgrid communities, connect more remote and rural areas of our province, and benefit energy-intensive industries,

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including the mining and manufacturing sectors. It could also drive economic growth and export opportunities as these technologies are further adopted across the country and around the world.

“Our governments support a collaborative approach to reducing emissions and growing the economy in a way that meets the specific needs and economic priorities of each province. We look forward to continuing to work together on innovative energy solutions and creating the best business environment to attract jobs and growth in regions right across the country.”

During the press conference, Moe noted that Saskatchewan is committed to reduce emissions in the electricity sector by 40 per cent below our 2005 levels by 2030.

Leading off the press

Ontario Premier Doug Ford, left, New Brunswick Premier Blaine Higgs and Saskatchewan Premier Scott Moe hold up signed copies of a memorandum of understanding on the development of small modular reactors. Photo courtesy Government of Saskatchewan conference he said, “We believe we can do this without unnecessary taxes that burden families, businesses.

Taxes that really do little in reducing emissions directly.

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targeted investments in innovative technology in our Canadian industries, without impacting our jobs, or impacting the Saskatchewan economy.”

“Because our responsibility to address climate change also comes with a responsibility to protect our economies, keeping jobs in our province and keeping our sustainable industries competitive. Today we are joining as premiers and provinces to look at the coming decade and beyond, to advance the development of zero emission small modular nuclear reactor technology.

Implementing small modular reactors will provide meaningful action in reducing our carbon emissions in electricity production while providing affordable, baseload power to our communities and industries.”

Estevan and Coronach have been under considerable angst over the future of coal-fired power near those communities, and Moe suggested that places that already have power generation transmission infrastructure might be potential sites for SMRs. He said, “In addition to providing reliable,

sustainable and affordable baseload power supply, this technology has the potential of creating high quality jobs and local economic development opportunities in communities where existing transmission infrastructure already exists, or, further, in rural and remote communities that currently rely on higher emissions power production.”

Saskatchewan, in particular, has been under pressure to reduce its reliance on coal-fired power generation as the federal government has pushed to phase out coal-fired power nationwide by 2030 in an effort to reduce greenhouse gas emissions. Ontario has already phased it out under its previous Liberal government, and Alberta was put on that path by its previous NDP government. New Brunswick and Nova Scotia still rely on coal for some of their power production.

Use of nuclear power would eliminate carbon dioxide emissions versus either coal- or natural-gas fired power generation which it replaces.

Moe’s statement hinted ► Page A15

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A15

Saskatchewan could go heavily into nuclear power ◄ Page A14 that Saskatchewan could go heavily into nuclear power.

He noted that Saskatchewan could reduce its power generation greenhouse gas emissions by adding through carbon capture and storage to its coal-fired generators, “or replacing those generators with combined cycle natural gas generation.”

Moe said, “By incorporating small modular reactor technology, in place of natural gas, or in place of coal generation with carbon capture and storage, that 40 per cent reduction target that I mentioned would actually move to 70 per cent emissions reductions by 2030, 80 per cent by 2040, and a complete 100 per cent

elimination of Saskatchewan’s electrical generation emissions by 2050. This is positive for Saskatchewan, this is positive, for Canada, and it’s taking real action in addressing global climate change.”

One option to reduce carbon dioxide emissions has been “clean coal.” While Saskatchewan was the first jurisdiction in Canada to implement a commercialscale carbon capture and storage (CCS) system on a coal-fired generating unit, Boundary Dam Unit 3, the concept has not caught on elsewhere. Even within Saskatchewan, SaskPower has also chosen not to implement CCS on Boundary Dam Units 4 and 5. An equivalency agreement with

the federal government reached in 2019 allowed the life of those units to be extended a few more years, otherwise federal regulations would have required them to shut down by the end of 2019.

A study put out in late 2018 by the Regina-based, SaskPower-affiliated International CCS Knowledge Centre indicated a second generation of CCS could be implemented at Shand Power Station. The report’s summary indicated that, compared to Boundary Dam Unit 3, “a CCS system at Shand could see capture capital cost reductions of 67 per cent per tonne of carbon dioxide captured as well as 92 per cent in potential savings to power plant integra-

tion capital cost.”

The Saskatchewan government has not made any decisions on whether to implement CCS on its remaining coal fleet of Boundary Dam Unit 6, Poplar River Power Station and Shand Power Station.

Beyond the aforementioned hints, at this point, there has not been any definitive indication from the provincial government where potential small modular reactors would be placed, should they be built.

While Saskatchewan has long been a world-leading producer of uranium, it has never developed a nuclear reactor beyond a tiny research reactor at the University of Saskatchewan which, after several decades,

was recently decommissioned. The idea of nuclear power in Saskatchewan has be brought forward several times in the late 20th century, but nothing ever came of it.

If this MOU does turn into actual power production, it will be this province’s first foray into the generation of nuclear power.

If these three provinces do go forward with new nuclear power, they, and in turn, Canada, will be bucking a trend of major western economies moving away from nuclear power even as developing nations move towards it. Japan shut down most of its nuclear power facilities after the Fukushima disaster, with the island nation turning to other energy sources like liqui-

fied natural gas as a result.

The same event prompted Germany to also move away from nuclear power.

The United States has two unites under construction in Georgia.

The World Nuclear Association website worldnuclear.org stated, “Today there are about 450 nuclear power reactors operating in 30 countries plus Taiwan, with a combined capacity of about 400 GWe (gigawatts). In 2018 these provided 2563 TWh (terawatthours), over 10 per cent of the world’s electricity.

“About 50 power reactors are currently being constructed in 15 countries, notably China, India, Russia and the United Arab Emirates.”

Surrey, B.C. – Falcon Equipment Ltd. has announced their exclusive partnership with Palfinger AG. Beginning Dec. 11, 2019, Falcon will be providing sales, rentals, service and parts support for all Palfinger products throughout British Columbia, Alberta, Saskatchewan and Manitoba. As of December 10, 2019, Falcon will no longer be the official distributor for Hiab. However, the com-

pany said in a release they will continue to work with the marketplace ensuring support for all makes and models of cranes and truck equipment.

“We’ve been in business since 1988, and over 31 years later we are still looking for ways to grow our business and provide better products and support to our ever-changing markets.

To do this, we need to offer our customers the best

range of products and unmatched service and parts.

Working with Palfinger will enable us to accomplish this goal,” Dan Kielan, president of Falcon Equipment said. “This is a big move for us; change isn’t always easy and it’s often uncomfortable. However, in this case, it will help us move forward and become stronger. Our growth strategy for Falcon is aggressive and well thought out and we are excited about

this transition.”

As of December 11, 2019, Falcon will be selling and supporting the Palfinger product line which includes knuckleboom cranes, material handling cranes, forestry and scrap cranes, aerial lift trucks, hooklifts, rail cranes and truck-mounted forklifts.

“We couldn’t be more excited about this product change as it is important that we are not only listen-

ing to our customers but are continually adapting our business to better suit their needs. Sitting back and resting on yesterday’s laurels is not part of our future planning,” Blair Norberg, vice president, said. “We have closely observed the global and local shift in our industry over the past few years and Falcon wants to be at the forefront of providing our customers with better solutions to satisfy all their

product requirements. Aside from being the global industry leader, Palfinger and Falcon are strongly aligned in their core values.”

Falcon Equipment Ltd., founded in 1988, provides sales, service, and parts support to the lifting, rail, municipal and utility industries within Canada and the United States. They have five branch locations – Nanaimo and Surrey, B.C., Leduc, Alta, Regina and Winnipeg.

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PIPELINE NEWS January 2020

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