December 2016 by Pipeline News North

Year In Review: B.C. LNG plans survive battering year / page 11 December / January 2017

PIPELINENEWSNORTH.CA

PIPELINE NEWS NORTH VOL. 8 ISSUE 12 DIST: 11,600

SERVING THE OIL & GAS INDUSTRY IN NORTHERN B.C. AND ALBERTA

FREE!

ALEISHA HENDRY PHOTO

Encana is B.C.’s busiest driller in a tough year for the province’s oil patch; B.C. unveils aggressive plan to electrify northern gas fields; Trans Mountain approval welcomed, but many challenges still lie ahead; Coalition Forum In Review: Ferus looks to send gas north, Chevron looks to lift Fort Nelson businesses, McLeod Lake carves self-sufficient path, + Coalition looks to build charter to inform Canada’s natural resource debate

When You Are Out in the Field, Time IS Money. QUALITY PARTS, EXPERT SERVICE!

â&#x20AC;¢ PIPELINE NEWS NORTH

DECEMBER 16, 2016

FORT ST. JOHN

PETROLEUM ASSOCIATION

MERRY CHRISTMAS & HAPPY NEW YEAR FROM THE BOARD OF DIRECTORS, MANAGEMENT AND STAFF OF THE FORT ST. JOHN PETROLEUM ASSOCIATION!

See you at the next Fort St. John Petroleum Association meeting in 2017.

DECEMBER 16, 2016

PIPELINE NEWS NORTH •

OUTLOOK

#oilsands

Charter to raise community voices in resource debate MATT PREPROST editor@ahnfsj.ca

They came, they saw, they listened, they shared—from innovations in the oil and gas sector, to upcoming investment and developments, to stories of building communities, stakeholders in B.C.’s natural resource industries left Taylor earlier this month with a broader understanding of the road ahead. That road will include a new charter on the future role resource communities will play in the energy debate that continues across the country. “There is the perception at our level that a perhaps a unified voice from resource communities might be a meaningful contributor to the ongoing debate we have about resource development, not only in British Columbia, but right across the country,” said Colin Griffith, executive director of the Northeast B.C. Resource Municipalities Coalition, in closing its fall forum in the region Dec. 1. The charter is still in its preliminary stages, but is based on five basic principles: respect for the law, respect for indigenous rights, respect for the environment, a commitment to the viability of the country’s resource communities, and a commitment to community resource planning. “There is a silent majority out there. There are groups that will stand up and say resources are important in our region, in our province, and we need to be able to

speak the other side,” Taylor Mayor Rob Fraser said. “There are not a lot of resources in the media anymore to cover a lot of these stories,” Fraser continued. “We’re going to have to figure out how to do that for ourselves. This charter will help us do that. We’re going to have to get loud, persistent, and have a common message. When I say loud, I don’t mean in people’s faces … when I say loud, I mean loud just from a perspective of numbers, pulling people together, and having that common message.” Respect for the law Decisions on resource developments made today are done under an umbrella of legislation and regulations that exist today, and must be respected, Fraser said. “We stand behind the processes that are there now,” he said. “If the country feels those processes are not good enough, then move to change them.” But right now, Canada’s systems seem to be increasingly under attack and being “hijacked” by special interest groups that are rattling investor confidence, Fraser said. “There seems to be a lot of delay, and it appears to be political delay when the science in place to make these decisions,” Fraser said. “If (industry) feels the systems can be hijacked by special interests just by delaying the processes, then there’s less certainty (for them).” CHARTER CONTINUED ON PAGE 10

MATT PREPROST PHOTO

Taylor Mayor Rob Fraser: “There is a silent majority out there. There are groups that will stand up and say resources are important in our region, in our province, and we need to be able to speak the other side.”

LAND ENVIRONMENTAL ARCHAEOLOGY UAV/REMOTE SENSING GIS SINCE 1980 www.roynorthern.com

JESSE MCCALLUM PHOTO

Fort St. John Mayor Lori Ackerman (centre) lays out a proposed charter for resource communities to adhere to and engage in when discussing resource development in national debate.

Terrace Fairview Fort St John Calgary Phone: 1.888.835.6682

• PIPELINE NEWS NORTH

DECEMBER 16, 2016

#oilsands

Ferus sees northern opportunities for B.C. gas MATT PREPROST editor@ahnfsj.ca

As B.C. continues its push to send more Northeast B.C. gas towards the West Coast and overseas, one Calgary company is turning its eyes north to domestic markets. Representatives with Ferus Natural Gas Fuels were in Taylor Nov. 30 to outline their vision to move more of B.C.’s gas into northern Canada, offsetting diesel power generation and helping spur the development of a pair of mines planned for the Yukon and Northwest Territories. The United States has quickly transformed from B.C.’s biggest customer to its biggest competitor under the “shale revolution” and development of the Marcellus play, while new exports to Asian markets remained constrained by weak prices and regulatory delays. But there’s another way to use Canadian gas, Ferus NGF VicePresident Travis Balaski told an audience of industry stakeholders at the Northeast B.C. Resource Municipalities Coalition’s fall forum. “We’re not competing with other shale resources, we’re not competing with landed LNG prices overseas, we’re competing with local diesel,” he said. Ferus sees remote power as the next big opportunity for natural gas, Balaski said, helping communities and industry reduce their green-

JESSE MCCALLUM PHOTO

Travis Balaski and Blaire Lancaster with Ferus Natural Gas Fuels outline their company’s objectives at the NEBC Resource Municipalities Coalition’s fall forum Nov. 30. The company sees remote power as the next big opportunity for natural gas, offsetting diesel power generation and feeding a pair of proposed mines in northern Canada.

house gas emissions by switching to a cleaner burning fuel to support their operations. B.C. is the choke point of natural gas infrastructure alongside the Alaska Highway leading into northern Canada and Alaska, he said. Ferus has signed memorandums of understanding with Casino Mining and Selwyn Chihong Mining to build a liquefied natural gas plant near Fort Nelson and supply their mines

planned in the Yukon and Northwest Territories. While mining is a trade sensitive business that takes years to sanction and build, Balaski believes the plant could also serve communities including Whitehorse, Yellowknife, Inuvik, even Anchorage and more in the interim. “You can build this massive supply chain that doesn’t exist,” he said. A plant would cost an estimated

$200 million to build, creating a couple dozen jobs during construction. But it would the supply chain that would be the biggest job creator, Balaski said, spurring job creation in the thousands, with trucks taking up to 50 loads of LNG per day over a transportation distance of thousands of kilometres. Read more at pipelinenewsnorth.ca

LEAVING A LEGACY

ALEISHA HENDRY PHOTO

Students at Taylor Elementary School will have the use of brand new iPads, thanks to a donation of $1,600 to the Taylor Elementary Parent Advisory Committee. The donation came from the Northeast BC Resource Municipalities Coalition, which hosted a forum at the Taylor Hall Nov. 29-Dec. 1. Instead of using money to buy gifts for the speakers who presented at the forum, that money went to the PAC. The donation was presented by Taylor Mayor Rob Fraser and Tumbler Ridge Mayor Don McPherson.

DECEMBER 16, 2016

PIPELINE NEWS NORTH •

THE CHARTS

#oilsands

Agreement looks to give Fort Nelson businesses a competitive edge ALEISHA HENDRY ahendry@ahnfsj.ca

Setting an example for how industry can work together with surrounding communities is a lofty goal, but it can be done. The Fort Nelson Chamber of Commerce and Chevron have joined forces to ensure that the community receives the economic benefits from the Liard and Horn River Basins. During the panel on best practices on responsible resource development at the NEBC Resource Municipalities Coalition Forum Nov. 30, Brad Caldwell, local contract advisor for Chevron, and Bev Vandersteen, executive director of the Fort Nelson Chamber of Commerce, presented together on the steps both parties have taken to create a Local Content Program. “It came about originally because we were hearing from local business that they weren’t getting the opportunity for local content jobs,” said Vandersteen. “It was difficult to quantify for businesses, so what I was hearing from my businesses, and what Chevron was hearing from their field operators, didn’t necessarily match.” So Caldwell and Vandersteen put their heads together to come up with a solution. The Local Content Program has four main principles. One, local businesses need to be competitive, and second, local businesses expecting a chance to bid on jobs. The third principle was the businesses get feedback from industry, and lastly, ensuring that the company is reporting back to the community. “I don’t think industry has done a great job of in the past, and what we’re hoping to change at Chevron is giving feedback to local businesses,” said Caldwell. “If they’re not successful in bid and RFPs, to explain why that is.” To put this together, both sides had to have commitments to ensure it worked. One of the key elements has been to develop a working group where both sides have representation.

The working group would put together terms of reference on why everyone was involved and what was expected of both sides. “What this will do will give us the ability to have those conversations and make sure that we are comparing apples to apples when companies are bidding,” said Vandersteen. “And if that’s not happening, we have the ability to take that information back to Chevron, the community and those businesses and provide them with the opportunity to fix what’s wrong.” Both sides needed to have their own commitments to ensure the program worked. The Fort Nelson Chamber had to put together a list of qualified local businesses, which needed to have a physical presence in the NRRM, have at least one employee that was a permanent resident of the municipality, and hold a valid business license unless they are exempt. The list would also include products and services that each company provides. Chevron’s commitments include giving local businesses on their lists a five per cent weighting when if comes to job bid, so if there’s a competitive bid between two companies, and one is a local NRRM company, they have the advantage. The second commitment is giving feedback to the chamber as to why a local business didn’t get a bid. Caldwell said this was beneficial for a couple of reasons. “One is that the chamber has a better understanding of what local businesses are not competitive, and the second is our folks, especially in the field, don’t like paperwork so if it means they can hire a local businesses and not have to provide a reason or a report for why they didn’t, they’re going to go the easiest path,” he said. Lastly, Chevron will provide data and statistics to the working group to provide the community with accurate information. The Local Content Program has been in place for several months and has been successful enough that Chevron will be working on a similar program in Fox Creek, Alta.

ALEISHA HENDRY PHOTO

Brad Caldwell, local contract advisor for Chevron, and Bev Vandersteen, executive director of the Fort Nelson Chamber of Commerce, give a presentation on their Local Content Program at the NEBC Resource Municipalities Coalition’s fall forum on Nov. 30.

Season’s Greetings Wishing you an abundance of glad tidings at this special time of year.

North Nig Contracting Oilfield Services

Serving Northern BC & Northern Alberta

HELP WANTED Seeking Professional Class 1 drivers and Owner Operators for our Fluid Transfer Division Apply with Resume and Drivers Abstract to admin@northnigcontracting.ca

Head Office - Fort St. John, BC: 250-785-7778 Alberta Office - Grande Prairie, AB: 780-831-7319 www.northnigcontracting.ca

• PIPELINE NEWS NORTH

DECEMBER 16, 2016

fb.com/pipelinenewsnorth

PNN MISSION STATEMENT Our mission at Pipeline News North is to provide the most current, interesting, and relevant news and information about the oil and gas industry in Northeast B.C. and Northwest Alberta. Have an interesting story to share or a news lead? Email us at editor@ahnfsj.ca.

WILLIAM JULIAN REGIONAL MANAGER 250-785-5631 wjulian@ pipelinenewsnorth.ca

Encana drilling pipe and rig in the Montney.

Encana busiest driller in a tough year for B.C. oilpatch

MATT PREPROST MANAGING EDITOR 250-785-5631 C: 250-271-0724 editor@ ahnfsj.ca

JONNY WAKEFIELD reporter@dcdn.ca

RYAN WALLACE ADVERTISING MANAGER 250-785-5631 C: 250-261-1143 rwallace@ ahnfsj.ca

ROB MONAHAN SALES ASSOCIATE 250-785-5631 C: 250-794-2683 rmonahan@ ahnfsj.ca

Encana Corp. was the busiest oil and gas company during a rough year for the B.C. oilpatch. The company drilled 91 wells through the end of November, according to well permit data from the B.C. Oil and Gas Commission. While Encana drilled more wells than it did last year, the data highlights a huge overall drop in drilling as the oil and gas downturn drags into its second year. The top-five oil and gas companies in B.C. combined for just 297 wells this year, compared to 580 in 2015 and 715 in 2016. Much of this year’s drop was due to cutbacks at Progress Energy, which spent the past two years proving resources for the Pacific NorthWest LNG export project near Prince Rupert. The company drilled 313 wells in 2014 and 356 last year. In 2016, Progress fell to second place behind Encana with just 62 wells. 2016 also saw Tourmaline Oil Corp. and Crew Energy drop out of the top five, replaced by Painted Pony Petroleum and Shell Canada, which

Ashford 30

www.gasfireplace.net

Phone (250) 785-5631 Fax (250) 785-3522

www.pipelinenewsnorth.ca • Thermostatically Controlled • Tested up to 30 Hours on 1 Load of Wood

11111 – 100th Street, Grande Prairie, AB

780-538-1987

Tues – Fri: 9am – 6pm • Sat: 9am – 5pm

R0011334620

BILLING: Lisa Smith - Accounting Manager 250-562-2441 ext 352 Fax:250-960-2762 accounting@ pipelinenewsnorth.ca

had 50 and 39 wells, respectively. Encana operates primarily in the South Peace, while Progress’s holdings are concentrated in the North Montney. Encana has recently shifted focus to natural gas liquids, though it holds an upstream stake in LNG Canada, a proposed liquefaction and export facility near Kitimat. According to Encana spokesperson Jay Averill, the company’s year-to-year spending in the Montney has been relatively flat. The company spent U.S. $159 million in the Montney in 2015, including the B.C. and Alberta sides of the shale formation. This year, Encana put around U.S. $120 million into the play. 2016 TOP B.C. OIL AND GAS DRILLERS (well permit totals through December 1) Encana Corp (91) Progress Energy (62) ARC Resources (55) Painted Pony Petroleum (50) Shell Canada (39) 2015 Progress Energy (356) Encana (81) Tourmaline Oil Corp. (58) Crew Energy (44) ARC Resources (41) 2014 Progress Energy (313) Encana (114) Tourmaline Oil Corp. (104) ARC Resources (99) Crew Energy (85)

DECEMBER 16, 2016

PIPELINE NEWS NORTH •

OUTLOOK

Montney in high gear despite market uncertainty TYLER NYQUVEST Business in Vancouver

Despite the changing global demands for natural gas, northern B.C.’s Montney region is still banking on significant growth for the new year. “In 2017, all major companies are looking at accelerating budgets to be in the excess of $4 billion,” said Colin Griffith, executive director of the Northeast BC Resource Municipalities Coalition. “Major companies that have projects that will be finishing up in 2017 are big players like Seven Generations.” Seven Generations Energy Ltd., a Grande Prairie-based energy company, plans to increase its Montney-area operations by approximately 50%, spending up to $1.6 billion in 2017 compared with between $1.05 billion and $1.1 billion in 2016. The increase will be invested in the operation of nine rigs drilling about 100 wells in the Montney area. Tourmaline Oil Corp., another key player in the area, is looking to expand on developmental properties recently acquired from Shell Canada with a spending average of $1.35 billion in capital in 2017. The company is upping its rig program to 17 from 12 and plans to drill

300 wells and complete a number of plant expansions. The Gitxsan First Nation and TransCanada Corp. (TSX:TRP) have signed an agreement on the Prince Rupert Gas Transmission line that has added to the area’s much needed pipeline development. The $5 billion pipeline would supply Petronas’ proposed Pacific Northwest (PNW ) liquefied natural gas export facility on Prince Rupert’s Lelu Island. The International Energy Agency’s World Energy 2016 report forecasts that the annual growth in global natural gas demand to 2040 will be 1.5%; however, global markets, business models and pricing are all in flux, creating uncertainty for the Montney region and the gas sector as a whole. “There has been a flood of gas and a downturn in the market for the prices being way down low, so the demand for liquefied natural gas around the world has slowed considerably,” said Dawson Creek Mayor Dale Bumstead. In the last year, three processing facilities have been announced in the Montney area, collectively worth about $2.3 billion. Encana Corp., Spectra Energy Corp. and Crew Energy Inc. are all building processing plants to handle production of the Montney’s natural gas liquids

(propane, butane, ethane), but the promise of LNG demand has slumped. “In terms of where is Canada’s future growth in gas production, the Montney is a huge part of it,” said geoscientist David Hughes. “The price of gas in North America will likely go up, so selling gas to North American markets will be more attractive and LNG less attractive.” According to an Alaska Highway News story, apartment vacancy rates in Dawson’s Creek and Fort St. John are the highest in B.C., sitting at 19.1% in October, which has been attributed to oversupply and low oil prices. Bumstead also admitted that the Montney region had developed so fast that building core infrastructure like water, sewer and roads will be a key concern moving into 2017. Petronas’ continued delay in making a final investment decision on its PNW project has also raised concern that investors are getting cold feet in B.C.’s northeast. But Bumstead remains confident that the Montney region will remain a pinnacle resource for the future of Canada’s gas sector. “There has been a pause in excitement for all of it,” he said, “but the industry is positioning [itself ] to be ready for when those final investment decisions are made.”

Horizontal Directional Drilling and Punch Boring American Augers DD110

Horizontal Punch Boring

American Augers DD6

Tridem Hydrovacs

- Wire-line & Mud Motor capabilities with 14 000 lbs torque

- A powerful rig with a smaller footprint

- A fluid-less alternative for environmentally sensitive crossings

- Day lighting hotlines & drilling fluid removal

Call or Email today for a free estimate

1-250-329-4324 or bud@fullborehdd.ca | www.fullborehdd.ca

• PIPELINE NEWS NORTH

DECEMBER 16, 2016

POLICY INSTITUTE FOR ENERGY RESEARCH PHOTO

Aggressive plan would electrify gas fields JONNY WAKEFIELD reporter@dcdn.ca

B.C. will offer incentives for natural gas producers’ to move onto the electricity grid and lean on the Trudeau government to fund new transmission lines as part of an aggressive plan to electrify its emissions-heavy oil and gas fields. In an interview Nov. 29, Energy Minister Bill Bennett laid out the government’s new plan to slash oil and gas sector emissions—an effort that would lead to a boom in transmission line construction in Northeast B.C. and have implications for independent power producers, the province’s liquified natural gas industry and the Site C dam. Electrifying B.C.’s gas fields would require buyin from industry as well as help from the federal government—challenges Bennett compared to a Rubik’s Cube. “There’s a reason the federal government and the provincial government are so enthusiastic about trying to solve that Rubik’s Cube,” he said. “It’s because there’s a lot to be gained here in terms of emissions reductions.” The minister is not seeking reelection in May 2017, making the electrification strategy one of his last major energy policy decisions. Under the new policy, BC Hydro will offer incentives for oil and gas producers to connect to the low-emission electricity grid, instead of burning their own gas to power hydraulic fracturing and processing operations. They would continue to pay regular BC Hydro rates. Bennett said the province is also in discussions with the federal government over funding for transmission lines to reach remote northeast oilfields. “We don’t know the results of that discussion

yet, but we’re cautiously optimistic that we’ll get some help from the federal government to build additional transmission lines that will help open up this program to other companies,” Bennett said. The oil and gas industry produces around 18 per cent of B.C.’s greenhouse gas emissions, according to the province’s Climate Leadership Plan released this August. In addition to reducing carbon dioxide emissions through electrificatioin, the province aims to slash the sector’s methane emissions by around 45 per cent. The push to electrify B.C.’s gas industry began with the Dawson Creek and Chetwynd Area Transmission Line (DCAT), which plugged South Peace natural gas producers into the W.A.C. Bennett dam in 2015. While a ramp up in oil and gas production has driven a spike in electricity demand, the DCAT line reaches only a handful of producers. Notably absent is Progress Energy, which owns holdings north of Fort St. John that would ship gas to the Pacific NorthWest LNG project BC Hydro is looking at building two or more additional lines to reach into those remote areas, Bennett said, potentially with help from Ottawa, which also hopes to cut emissions from the oil and gas sector. The greenhouse gas emissions reductions would be significant. Existing oil and gas electrification has cut around 1.6 million tonnes of greenhouse gas emissions a year, while electrifying the remaining oil and gas operations in the Montney shale would avoid an annual four million tonnes, Bennett said. It would also address another problem facing BC Hydro: low electricity demand. “We’re trying to drive demand for electricity,

because we have excess clean electricity and obviously we’d like to sell it in the province in ways that contribute to our economy and help create jobs,” the minister said. While existing demand is slack, Bennett expects new LNG projects and oil and gas electrification will drive demand for electricity by the time Site C is expected to come online in 2024. “Even with Site C, we will not have enough generation in the province,” he said. “We’re pretty optimistic our economy is going to continue to grow. So while we have a shortage right now that we’d like to (fill), we also know we’re going to have to build new generation.” That could lure back independent power producers who fled the province after the approval of Site C. Many producers, including the Canadian Wind Energy Association, said it was unlikely any new wind, solar, run-of-river or geothermal projects would go forward following the Site C decision, predicting a glut of electricity on the market. The plan will likely encounter pushback from critics who see it as additional subsidy for the oil and gas industry. Earlier this year, B.C. NDP critic Adrian Dix criticized the B.C. Liberal’s gas electrification plan as “chasing customers” for Site C, which opponents say isn’t needed to meet demand. Others say the government’s new electricity rates for LNG terminals amount to tens of millions of dollars in subsidies. Bennett said that while there would be upfront costs, electrifying gas fields would pay for itself over time. “I’ve always wanted to have electricity available for the natural gas industry, but I’ve never believed we can or should do that on the backs of provincial ratepayers,” he said.

DECEMBER 16, 2016

PIPELINE NEWS NORTH •

FIRST NATIONS

McLeod Lake works towards self-sufficiency ALEISHA HENDRY ahendry@ahnfsj.ca

When Derek Orr was elected chief of the McLeod Lake Indian Band, it was in rough shape. The band was carrying a hefty deficit with that seemed insurmountable. From 2008 to 2011, the the band buckled down and focused on eliminating its debt, and from then on, Orr said, it was able to make several agreements and work on developing the community. “When I got in, we were in such a big deficit for that it took three years to get going,” said Orr, who is in the middle of his final term as chief, during a speech to industry leaders in Taylor Nov. 30. Orr was a keynote speaker at the NEBC Resource Municipalities Coalition Forum, sharing the trials and triumphs his band has experienced in dealing with resource development. Orr shared some of the major challenges the band has faced as it tries to get things back on track, from the ongoing fallout of the residential school system, ensuring proper education and training for his members, to having the investment capital to take on projects and ensure proper development planning, all while maintaining strong leadership and dealing with the Indian Act.

proponents, as well as being at the table when big decisions are being made about projects. Along with its three companies, McLeod Lake also set up the Tse’khene gas station to work its way towards self-sufficiency. It started out with the pumps and a small shack where people would pay; now the gas station is part of the Ah’da centre, which has a café, convenience store, hotel rooms and a fire station. Orr says he pushes for his members to have a healthy active lifestyle, which he tries to lead by example. Members of the band made the trip to the Lower Mainland for the Vancouver Sun Run this year, thanks to the resources from the band-owned companies. In 2010, the band held a grand opening for a daycare centre that has a language program. Only a handful of elders still speak their traditional language due to trauma from going through residential schools, Orr JESSE MCCALLUM PHOTO McLeod Lake Chief Derek Orr was a keynote speaker at the NEBC Resource Municipalities said, so the band is trying to preserve the language by teaching it to Coalition Forum, sharing the trials and triumphs his band has experienced in dealing with the youth. resource development. Orr says the band focuses on “To do anything on the reserve we ging, Duz Cho Construction and solving its own problems whenever have to talk to the federal govern- Duz Cho Forest Products—that possible. ment … it’s often very challenging focus on employing members to “That’s what we try to do at Mcand cumbersome and very slow,” he help them get the education and ex- Leod Lake Indian Band. It’s been our said. perience they need for the industry. leaders before looking to provide McLeod Lake has three bandOrr believes it’s important to de- solutions and opportunities to our owned companies—Duz Cho Log- velop relationships with industry members going forward,” he said.

11115 - 100 Avenue, Grande Prairie, AB T8V 3J9

1.888.532.5900 www.gprindustries.com

• PIPELINE NEWS NORTH

DECEMBER 16, 2016

LNG B.C. LNG plans survive battering year JONNY WAKEFIELD reporter@dcdn.ca

In February, the province’s oil and gas ministry held its monthly drilling rights auction. For the first time in history, it walked away empty handed. The $0 land sale kicked off a year of bad news for the industry. Critics took it as another death knell for the B.C. government’s dream of liquefying northeast gas reserves for export to Asia. With oil and gas prices stubbornly low after one of the worst downturns in history, multiple LNG joint ventures shelved or delayed projects. The dozen or so remaining proposals hang in limbo—waiting on government approvals and facing varying degrees of local opposition. Report after report suggested B.C. had missed its window of opportunity— that there’s just too much gas on the world market for B.C. projects to make money. It seemed there was nothing but bad news for B.C. LNG in 2016. Until there wasn’t. Despite the bruising it took this year, B.C.’s nascent LNG industry will go into 2017 with a positive investment decision and forward momentum on projects that had been written off a year earlier.

Proponents have already spent billions advancing their projects through the regulatory processes and proving up gas reserves. While the province won’t meet its goal of three operating LNG plants by 2020 (short of divine intervention), Premier Christy Clark will be able to claim LNG is on track going into the 2017 provincial election, despite a few speed bumps. Pacific NorthWest LNG, the Petronas-backed proposal near Prince Rupert, dominated the headlines in 2016. In March, Environment Minister Catherine McKenna delayed environmental approval of the $11.4 billion terminal to request more information on its impact on marine eelgrass beds. The project’s emissions are another concern: while supporters say LNG will offset dirtier burning coal in Asian markets, environmental groups say the terminal itself will be one of Canada’s largest emitters of greenhouse gases. The project is pivotal for the Canadian oil and gas industry. With the U.S. quickly becoming selfsufficient in oil and gas production, Canadian producers risk being shut out of their largest market. Projections for the B.C. LNG industry have dimmed considerably since the B.C. Liberal government

CHARTER CONTINUED FROM PAGE 3 Respect for Indigenous rights Canada must stand behind and adhere to the treaties it has signed with First Nations over the years. That means ensuring First Nations communities receive fair and adequate treatment when planning resource developments and addressing their concerns. “They need to have respect and be part of the process,” Fraser said. “The treaty’s basic right is they are able to move forward with the lifestyle and have the ability to exist they had before contact. That was based on the environment of the times. Nobody knew then, on the European side or First Nation side, what was coming at us the next 100 years. “But there were many historical events that happened that we probably shouldn’t be very proud of that need to be addressed. But when it comes to community level, we all want the same things … they want to be able to plan and make sure they have viable communities,” he said. The idea of “meaningful consultation” needs to be better defined, he added. “What are the timelines, what are the barriers? If its capacity, let’s build that capacity,” Fraser said.

unveiled its LNG strategy in 2012. LNG supporters once talked of trillion-dollar prosperity funds generated from LNG revenue; now, many simply want to save the industry from terminal decline. For struggling oilfield workers in Northeast B.C., the Pacific NorthWest delay was the last straw. Since late 2014, hundreds of people in Dawson Creek, Fort St. John and Fort Nelson have lost jobs as energy companies slashed exploration budgets. The region’s unemployment rate reached double-digits, while employment insurance claims and vacancy rates soared. A new market for natural gas was reason for hope. In March, a group calling itself Fort St. John for LNG launched a truck rally, largely made up of equipment left sitting idle since the downturn. Hundreds of trucks lined up across the city to push the government to approve Pacific NorthWest. While they waited, the bad news continued to roll in. In July, Shell announced it was delaying its LNG Canada project near Kitimat. Just months before, Douglas Channel LNG became the first to formally bow out of the race. American LNG continued to stream out of the newly-built Sabine Pass

“We need to work with indigenous population and their communities, the government needs to work with them, to really define what the processes look like, then we can fully engage all of us … and move forward.” Respect for the environment Resource development and protecting the environment go hand-in-hand, and is as clear as “motherhood and apple pie,” Fort St. John Mayor Lori Ackerman said. “This is our backyard,” she said. “We try to recruit and retain skilled professionals to our communities: doctors, teachers, nurses, RCMP, and to retain them here we need to be able to provide them with quality of life and quality of experience.” Industries come from the environment -- from the fur trade, to agriculture, to forestry, to fuel, Ackerman said. “The jobs bring people here, the environment keeps them here,” she said. Viability of resource communities Resource and First Nations communities need to be given priority when resource decisions are

terminal in Louisiana, supplying an already flooded market. In a sign of how dire things were on the LNG file, The Tyee reported provincial bureaucrats asked to play up good news stories about the industry had come up mostly empty. Peace Region politicians began to look for a Plan B. And then, in the early fall, three Trudeau ministers flew to the West Coast, found a patch of oceanfront by YVR and conditionally approved Pacific NorthWest LNG. A little over a month later, Woodfibre LNG announced it would build its project near Squamish (albeit only with a BC Hydro rate discount), the first project to go ahead. Both proposals continue to face hurdles, but going into 2017, the pall that has hung over the LNG file has lifted somewhat. Questions remain over when Pacific NorthWest LNG will make its final investment decision, and whether it will come before or after the provincial election in May. There’s also the looming question mark of the Trump presidency and a cabinet that’s gung-ho toward U.S. oil and gas production. Still, after a bruising year, B.C. LNG can’t be counted out. Only time will tell what 2017 brings.

made by provincial and federal governments, Ackerman said. Resource communities such as Fort St. John are often the service centres supporting and bearing the brunt of development outside municipal boundaries. “We provide essential serves to the skilled professionals who are here making sure that our industry is leaving a lighter footprint,” she said. Service centres support industrial development by providing serviced land, utilities, transportation, policing, recreation, culture and more. “We are like the gift that just keeps on giving. so communities, both incorporated communities, rural communities, and First Nations communities need to be recognized with these decisions,” Ackerman said. Cumulative resource planning Both the positive and negative impacts need to be considered in resource development planning. “We need to understand what tools do we have today, not only in communities but organizations and industries, how do we move forward, and what capacity gaps are there and how do we fill those?” Ackerman said.

DECEMBER 16, 2016

PIPELINE NEWS NORTH •

OUTLOOK Challenges, opportunities ahead for B.C. resources FORESTRY

ALEISHA HENDRY ahendry@ahnfsj.ca

Representatives from four major B.C. industries gave an update on their respective resources to attendees at the NEBC Resource Municipalities Coalition Forum on Nov. 30. LNG David Keane, president of the BC LNG Alliance, discussed where the province stands with its fledgling liquefied natural gas industry. Despite the industry’s critics and skeptics, the province is looking at LNG for the long haul, not a short term opportunity, he said. “It’s not a 100-metre dash, it’s more like a marathon,” said Keane. Demand for B.C. LNG is expected to grow in the next decade, Keane says, and, despite that, the global energy supply is expected to reach 15 per cent by 2040, and there will still be a need for conventional energy sources. He also discussed how LNG would benefit the economy by providing

Bryan Cox, Mining Association of BC

David Keane, BC LNG Alliance

jobs—Pacific Northwest LNG would employ 7,500 people in the building of the plant and 3,000 people in building its associated pipeline network. MINING Bryan Cox, vice-president of corporate affairs for the Mining Association of BC, talked about the state of the province’s mining industry during his turn at the podium. Mining has seen a bit of a downturn in recent years—nine mines in B.C. are currently in care and maintenance mode—but those in the know remain cautiously optimistic. The turnaround in Tumbler Ridge has been astounding, and has been a high point for many in the industry, Cox said. He also noted that the mining industry wants to build a more sustainable relationship with the provincial government and have more discussions about matters such as the carbon tax.

The forestry industry has had a rough go of things in recent years, from wood damaged by insects to the expiration of the softwood lumber deal with the United States. Michael Armstrong, vicepresident of policy and operations for the Council of Forest Industries, discussed those and more in his presentation. The Softwood Lumber Agreement expired in October 2015, and then the standstill agreement expired in October 2016, so dealing with importing to the U.S. has been daunting. However, Armstrong is confident the industry will prevail, as the U.S. cannot meet its own domestic demands without Canadian lumber. The forestry sector has also had to deal with the Mountain Pine Beetle, which devastated the industry for several years. Recovery has begun on that front, but now the industry has to deal with the Spruce Bark Beetle, which Armstrong says is even worse. Trees killed by the Mountain Pine Beetle can still be useful and reclaimed for up to 10 years, though wood resources killed by the Spruce Bark Beetle is unusable after three years. Looking to the future, Armstrong called forestry one of the most renewable resources, as 200 million trees are planted every year to replace those that are logged.

Michael Armstrong, Council of Forest Industries

“We’ve been at this thousands of years, but we’re getting better at it,” said Kantz. Many farmers are moving to a zero-till model, which is having continuous crops so the fields are covered for the whole year. Zerotill means less passes over the soil, and keeps the nutrients where they want them. Less passes also mean less fossil fuels being used and less emissions. The agriculture industry is also working on better irrigation techniques. Kantz said farmers use 70 per cent of the world’s fresh water, but a lot of the water used goes back into the cycle. Work is also being done on breeding crops for better water use.

AGRICULTURE Rick Kantz, president of BC Grain Producers Association, discussed how Peace Region farmers have had to adapt and change their practices in recent years.

Rick Kantz, BC Grain Producers R001697755

• PIPELINE NEWS NORTH

DECEMBER 16, 2016

PIPELINES

Saulteau FN signs multi-million dollar deal over Coastal GasLink MATT PREPROST editor@ahnfsj.ca

Saulteau First Nations and the B.C. government have reached a new agreement on the Coastal GasLink natural gas pipeline project to help ensure that the Saulteau community can participate in and benefit from B.C.’s LNG opportunity. Pipeline benefits agreements with First Nations are part of the B.C. government’s comprehensive plan to partner with First Nations on LNG opportunities, which also includes increasing First Nations’ access to skills training and environmental stewardship projects. As part of the agreement, Saulteau First Nations will receive approximately $3.9 million in funding as construction related milestones are reached. In addition, Saulteau and other First Nations along the natural gas pipeline route will share $10 million per year in ongoing benefits once the pipeline is in service. “This agreement is part of a growing recognition of our longheld treaty rights,” Saulteau Chief Nathan Parenteau said. “It has the potential to help our community achieve its goals, and it represents another step towards a more balanced and respectful relationship between the Province and our Nation. Everyone must respect our treaty rights and work with us to find solutions.” The 670-kilometre pipeline would bring gas from an the Groundbirch area to the proposed LNG Canada

project near Kitimat for export to Asian markets. TransCanada Corporation received the last of the permits it needed from the B.C. Oil and Gas Commission to build and operate the Coastal GasLink pipeline in May. The government says partnering with Saulteau First Nations is part of its efforts to build meaningful relationships and partnerships with First Nations. In 2015, the government and Saulteau signed a New Relationship and Reconciliation Agreement which will help to protect areas of traditional importance and guide natural resource development in the province’s Northeast. “This is another example of how responsible resource development can coexist with treaty rights to build a better economic and sustainable future in First Nations communities and the province as a whole,” John Rustad, Minister of Aboriginal Relations and Reconciliation, said. The province says it has reached 62 pipeline benefits agreements with 29 First Nations for four proposed natural gas pipelines, including Prince Rupert Gas Transmission, Coastal GasLink, Pacific Trail Pipeline, and the Westcoast Connector Gas Transmission natural gas pipeline project. Saulteau, located 100 kilometres southwest of Fort St. John near Chetwynd, is the largest Treaty 8 First Nation with 1,000 members, according to the province.

PRGT Gitxsan hereditary chiefs sign project benefits agreement MATT PREPROST editor@ahnfsj.ca

TransCanada’s Prince Rupert Gas Transmission project (PRGT) has signed a project agreement with 12 hereditary chiefs of the Gitxsan Nation, the company announced Tuesday. The hereditary chiefs each represent a Wilp (house group) whose territory is affected by the project route. The agreement outlines economic and employment benefits as well as other commitments that will be provided for as long as the project is in service. “This agreement is the product of our engagement with the Gitxsan hereditary leadership. This comprehensive agreement provides long-term economic benefits, jobs, contracting opportunities and information sharing throughout the life of the project,” said Tony

Palmer, president of PRGT. The $5 billion pipeline will carry gas 900 kilometres from the Hudson’s Hope area to Petronas’s proposed Pacific NorthWest liquefied natural gas export facility on Lelu Island. Hereditary Chief Geel (Catherine Blackstock) said the agreement is important to the economic health of northern B.C., “I envision this as a great opportunity for all Gitxsan and community people to revitalize employment in our economically depressed upper Skeena region.” PRGT has signed 13 project agreements with First Nations in B.C., including Blueberry RIver First Nations, Doig River, Gitanyow, Halfway River, Kitselas First Nation, Lake Babine Nation, McLeod Lake Indian Band, Metlakatla First Nation, Nisga’a Lisims Government, Takla Lake First Nation, Tl’azt’en Nation, and Yekooche First Nation.

Senate committee recommends NEB reforms NELSON BENNETT Business in Vancouver

A Senate committee is recommending reforming the National Energy Board (NEB) to require more focus on environment and First Nations concerns as a way to break a “bottleneck” that has prevented new oil pipelines from being built in Canada. It is also recommending that, once the NEB has made a decision that it be the final word and not be subject to Governor in Council final approval. The Senate Committee on Transport and Communications has concluded that the current NEB process is too politicized and too narrow. When it reviews a project like an oil pipeline,

the NEB only considers technical issues such as safety and economic viability, the committee says. The committee recommends the NEB’s mandate be expanded to give more weight to environmental and First Nations concerns. But that doesn’t mean the committee wants to make the regulatory process necessarily tougher. In fact, the recommendations are aimed at getting new pipelines approved. It says a stronger “more inclusive” process that would maximize economic benefits while minimizing environmental risk is critical to “achieving broader public consensus.” “Expanding Canada’s pipeline network is an economic imperative,” the committee states in a news release. “Pipeline paralysis is costing the Canadian economy billions of dollars

and thousands of jobs. The lack of energy infrastructure leaves Eastern Canada dependent on foreign oil while the vast majority of the oil that Canada exports is sold at a steep discount to the oil-rich United States.” The committee says the Trans Mountain pipeline expansion to the West Coast, and Energy East line to the East Coast would generate a total of $77.6 billion to Canada’s gross national product. “Like the construction of the Canadian Pacific Railway almost 150 years ago, pipeline construction is an exercise in nation building,” Senator Terry Mercer said. “An expanded pipeline network will ensure our ability to get our oil to tidewater and to get global markets that offer better prices.”

DECEMBER 16, 2016

PIPELINE NEWS NORTH •

PIPELINES

Trudeau’s Trans Mountain approval welcomed But opportunity still not locked in

ALBERTA OIL CALIFORNIA-BOUND?

DEBORAH JAREMKO JWN Energy

The federal approval of the Trans Mountain Pipeline expansion starts to put confidence back in the market for upstream investors in Canadian oil development, says Canadian Association of Petroleum Producers (CAPP) president Tim McMillan. But environmental groups are focusing on the accompanying decision to “dismiss” the approval for the Northern Gateway Pipeline, which they say is evidence that infrastructure projects can be halted by their actions. “The fact of the matter is we made this decision because it is in the interest of all Canadians… The fact is that people asked us to serve to make difficult decisions in the interest of our country and the future we want to build for our kids and grandkids,” said Prime Minister Justin Trudeau in a news conference Nov. 29. “That means protecting the environment for future generations while creating good jobs and opportunity as we build a transition off of fossil fuels and into a renewable future. That can’t be done right now, today, or tomorrow. It has to be built over the coming months and years. That’s exactly what this decision is all about.” Alberta premier Rachel Notley said the decision to approve the $6.8 billion pipeline project from Alberta to Burnaby, B.C. to shows “extraordinary leadership” by Trudeau. Ian Anderson, president of Trans Mountain proponent Kinder Morgan Canada, called the approval a defining moment for Canada and its energy industry. The existing Trans Mountain Pipeline has been operating since the 1950s, but its expansion would provide the first meaningful volumes of oil exports from Canada to tidewater markets. The project would increase transportation volumes from 300,000 to 890,000 bbls/d. “We are getting a chance to break our landlock,” Notley said. “We’re getting a chance to sell to China and other new markets at better prices. We’re getting a chance to reduce our dependence

KINDER MORGAN CANADA

on one market, and therefore to be more economically independent. And we’re getting a chance to pick ourselves up and move forward again.” Trudeau cited Alberta’s Climate Leadership Plan as a key reason his cabinet was able to approve the new pipeline infrastructure. The federal government also announced approval of Enbridge’s Line 3 replacement project between Alberta and Manitoba on its way to Wisconsin. This $4.8 billion project will replace the pipeline, which has been operating since 1968, and enable operations at its original design throughput of 760,000 bbls/d instead of the 390,000 bbls/d Enbridge has been running it at since 2010. The reduction in capacity is due to reduced pressure to ensure safe operations. Trudeau also announced a moratorium on crude and persistent oil tankers along British Columbia’s north coast. Environmental groups say the approvals, particularly the Trans Mountain green light, begin a new phase of escalating opposition that is empowered by the rejection of the Enbridge Northern Gateway project. “Community opposition to the [Trans Mountain expansion] project has never been stronger, and as we’ve seen with Northern Gateway, that’s what will prevent this pipeline from ever being built,” read a statement by Jessica Clogg, executive director and senior counsel of West Coast Environmental Law. CAPP president McMillan believes the approval will stand up. “Canada has a very robust and thorough regulatory process with the National Energy Board, and when

the Liberal government got elected just over a year ago they wanted to put an enhanced process in place, a second panel that would visit communities, test on greenhouse gases, and they wanted to make these changes to ensure they had confidence whatever the result… and at the end of that enhanced process the federal government said yes, this is in the national interest,” McMillan said. “At this point I think it is reasonable to expect that not all Canadians will have the same opinion on this issue, as Canadians don’t on any given issue. We have a long expectation of free speech and people are certainly open and encouraged to express their beliefs, their thoughts, their views but I think it will be very difficult for people to question whether the process was thorough [and] whether it met the expectations of our government.” McMillan cautioned the approval, while positive, is just the first step towards realizing the potential of the Trans Mountain expansion. “We need to see construction and ultimately until volumes are flowing through it that is when we will truly see the benefit,” he said. Kinder Morgan says the decision triggers a number of next steps. “Trans Mountain will continue to seek all necessary permits, and is planning to begin construction in September 2017, with an in-service date for the twinned pipeline expected in late 2019,” the company says. “Other next steps will include a final cost estimate review with shippers committed to the project and a final investment decision by the Kinder Morgan board of directors.”

Alberta Premier Rachel Notley has said the $6.8 billion Trans Mountain project is needed to open Alberta oil exports to new markets, particularly Asia. But critics say the 13 shippers and oil producers that signed takeor-pay contracts for the pipeline expansion don’t have any customers in Asia yet, and, even if they did, they would get no better price there for their oil. So what are Trans Mountain proponents talking about when they insist the expansion is needed to get Alberta oil to foreign markets, unless they consider California a foreign market? Travis Whalen, an energy analyst for S&P Global Platts, believesthe biggest new market would be California, not Asia, at least initially. “A lot of that is going to be going to the U.S. but a lot of that is going to be seeking global oil prices in tidewater,” he said. Most of the oil produced in Alberta goes to U.S. refineries on the Gulf Coast by pipeline. California is an isolated region not served by major pipelines. Its refineries, which are set up to process heavy crudes like the kind produced in Alberta, bring oil in by tanker from other countries and by rail from Canada. An expanded Trans Mountain pipeline would allow more oil from Alberta to move to California by tanker, which is much cheaper than rail. And that would raise the price of oil for Alberta producers, Whalen said. “There will absolutely be a price lift,” he said. As for future markets, most of the new refining capacity in the world today is being built in Asia. A recent analysis by Gaffney, Cline & Associates predicts that new Asian refineries will add six million barrels of oil per day between now and 2018, with China accounting for 55% of that new capacity and India 24%. Afolabi Ogunnaike, a Wood Mackenzie oil analyst, recently told Business in Vancouver that up to 50% of the oil from the Trans Mountain could eventually go to Asian refineries. But developing new markets for oil doesn’t happen overnight. Refiners need to test new supplies before signing long-term contracts. Whalen said he expects that once Trans Mountain is expanded, “sample shipments” will start moving to Asia for testing. —Business in Vancouver

• PIPELINE NEWS NORTH

DECEMBER 16, 2016

COAL

Conuma Coal aims to be a blessing rather than a burden ALEISHA HENDRY ahendry@ahnfsj.ca

Tumbler Ridge had been in a rut since the nearby Walter Energy coal mines—the community’s bread and butter industry—were shut down. But things are starting to turn around, as Conuma Coal saw potential in the shuttered mines. Mark Bartkoski, president of Conuma, gave a talk at the NEBC Resource Municipalities Coalition Forum on Nov. 30 during the panel on best practices for responsible resource development. Rather than go through the bankruptcy process, which could have taken a year, Bartkoski said his company wanted to get workers back on the job as soon as possible. “Job security was going to be our goal and that was what we were going to base our company on,” he said. After seven months of hammering out the details, the Brule coal mine was reopened in September with 200 employees. The Wolverine mine was slated to open Dec. 5 with 220 employees working, and Willow

ALEISHA HENDRYPHOTO

Conuma Coal President Mark Bartkoski laid out his company’s plans to restart shuttered mines near Tumbler Ridge and Chetwynd during a presentation at the NEBC Resource Municipalities Coalition Forum in Taylor Nov. 30.

Creek Mine near Chetwynd is expected to be up and running in the fall of 2017 with 160 employees. Bartkoski says Conuma Coal has a united partnership that includes employees, communities, First Nations, the environment ministry and

investors. Having everyone working together makes for a more successful business. Conuma has a set of empowering values that Bartkoski believes is what makes them such a unique company. These include safety,

prevention, teamwork, mutual respect, communication, training, accountability, continuous process improvement, and reverence. He also outlined Conuma’s responsibilities as a company, including stewarding a positive footprint at its operations; offering security in a cyclical industry; focusing on local employees and services; be a blessing to partners; contributing to the tax base, wages, and transportation; and personally caring for their family members, ie. employees. “What we’ve decided to do is make a family out of a small company amongst a bunch of communities,” he said. He noted that Conuma will buy local and employ local at every opportunity, and because it wants to keep families together, there won’t be any work camps set up at the mine sites—workers will go home after their shift. Bartkoski noted that Conuma’s main goal is to be a blessing to the people and the communities in the area. “My challenge is we don’t let you down,” he said.

2017 2016SCHEDULE SCHEDULE

PUBLICATION PUBLICATION DATEDATE

BOOkINg BOOKING DEADLINE DEADLINE

AD COPY DEADLINE DEADLINE

20 JAN152017 JAN 2016

18 13 JAN JAN2017 2016

19 2017 14 JAN JAN 2016

17 FEB122017 FEB 2016

15 10 FEB FEB2017 2016

16 2017 11 FEB FEB 2016

17 MAR 2017 2016 11 MAR

15 MAR 9 MAR2017 2016

16 2017 10 MAR MAR 2016

21 APR 15 2017 APR 2016

19 13 APR 2017 APR 2016

20 2017 14 APR APR 2016

19 MAY 13 2017 MAY 2016

17 11 MAY MAY2017 2016

18 2017 12 MAY MAY 2016

23 JUNE 2017 2016 17 JUNE

21 JUNE 2017 15 JUNE 2016

22 2017 16 JUNE JUNE 2016

15 JULY 21 JULY 2017 2016

13 JULY 2016 19 JULY 2017

14 JULY JULY 2016 20 2017

19 2017 AUG 2016 18 AUg

17 AUG 2016 16 AUg 2017

18 AUg AUG 2016 17 2017

SEP 2016 22 SEP162017

SEP2017 2016 20 14 SEP

15 SEP SEP 2016 21 2017

14 2017 OCT 2016 20 OCT

OCT 2016 18 12 OCT 2017

13 OCT OCT 2016 19 2017

18 2017 NOV 2016 17 NOV

NOV 2016 15 16 NOV 2017

17 NOV NOV 2016 16 2017

DEC 2016 22 DEC162017

14 DEC 2016 20 DEC 2017

AD COPY

14DEC DEC 2017 2016 21

R0011177933

DECEMBER 16, 2016

PIPELINE NEWS NORTH •

POLICY Recycle carbon taxes to fuel innovation, CAPP says TOM SUMMER For Pipeline News North

Should carbon tax revenues generated by Canada’s oil and gas industry be recycled back into the industry? That’s one idea the Canadian Association of Petroleum Producers (CAPP) proposes, founded on the idea that carbon taxes could be used to preserve and enhance the sector. “Any pricing mechanism implemented should contribute to a vibrant and competitive oil and gas sector while efficiently and effectively facilitating reductions in (greenhouse gas) emissions,” the organization said in a 17page brief written last August and obtained by Greenpeace Canada from the Saskatchewan government. Krista Phillips, oil sands manager with CAPP, told CBC News that CAPP is in agreement with Canada’s Ecofiscal Commission, which concluded that carbon pollution pricing is an appropriate measure, and that regionally tailored options should be available for “recycling” revenues. “What we’re suggesting is the revenue generated go back to our industry for technology

rs : Drille l report Specia

VOL. 7

ISSUE

THE SERVING

,000

16 6 DIST:

C tap Site

n for clea

power

S NORT

NEW PELINE RTH.CA

NEWSNO

PIPELINE

n may e Regio in Peac

JUNE /

and innovation to help us become that lowcarbon supplier of petroleum products,” Phillips said. Phillips could not be reached for further comment. Amidst the backdrop of federal policy announcements on climate change, Saskatchewan Premier Brad Wall has been the loudest opponent to the changes; threatening to take legal action against Ottawa over increasing tax of $10 per tonne of carbon dioxide emissions starting in 2018 and up to $50 per tonne in 2022. The current federal Liberal carbon price plan mandates that any revenue generated stays within its province or territory of origin, to be used at the discretion of the provincial government. Tim Maryon, vice-president of sales and business development for Peace Country Petroleum, said while he favours carbon taxes, he does not support flowing back its revenues to the industry. “It should be up to the market and innovation to dictate supply and demand in business,” Maryon said. “Carbon taxes are a valid approach that

already exists in British Columbia,” he continued, adding it would be “more impactful to implement the same policy in Alberta or Saskatchewan.” Greenpeace Canada member Keith Stuart criticized the possibility of using carbon tax revenue to reinvest into the oil and gas sector. “By returning the largest share of the revenue back to the oil industry, the signal to investors to shift resources to low-carbon energy is muted,” he said. The critique has not fallen on deaf ears. CAPP highlights on its website that demand for petroleum exists beyond combustion used to power automobiles and industrial machinery. Asphalt for road paving and roofing, lubricants such as motor oil and grease, waxes for candles and polishes, and the materials for petrochemicals such as polystyrene and synthetic rubber are a small handful of the products that rely on the oil and gas sector. Phillips confirmed CAPP’s commitment to pursuing alternative uses of petroleum. “There’s lots of products, lots of markets, that demand petroleum products. We want to become the lowest-carbon supplier of products, globally,” she said.

Northern British Columbia and Alberta’s Oil and Gas Industry

JULY 20

Full Page 6 col x 180 ag (9.448” x 12.857”)

FREE!

BERTA . AND AL RN B.C NORTHE TRY IN S INDUS OIL & GA

y A heav f reality dose o

Half Page horizontal 6 col x 90 ag (9.448” x 6.429”)

Half Page vertical 3 col x 180 ag (4.645” x 12.857”)

Banner 6 col x 42 ag (9.448” x 3”) – 1/2 Banner (---) 3 col x 42 ag (4.645” x 3”)

“Pipeliner” 2 col x 32 ag (3.045” x 2.28”)

bate line de da’s pipe r Cana wrong have it check fo cs ity iti al cr A re supply 0 oil me gas en at $6 king Why so ar frac ound, ev not to fe nities ab uamish Opportu Sq lls te n Creek so aw D

file lamers matt

Photo

Quarter Page vertical only 3 col x 90 ag (4.645” x 6.429”)

el ue to fu contin It will ergy. come. able en time to untry. afford co ng d e lo an th a e r ss bl ture fo to relia l and gas acro orld’s fu with access t oi s d the w anspor nada an ing Canadian ay to tr rt of Ca ient w ovid ain a pa ost effic hile pr m w m d y, re gas will of the econom the safest an Oil and n to part be give a large should eration Consid

PRINT & ONLINE EXPOSURE

R0016977

LOCATIONS THAT SUIT YOUR BUSINESS NEEDS

ADVERTISING RATES 2016 (colour included)

Back Page - $1500 Inside Back - $1000 Inside Front - $1000 Centre Spread - $1500 Full Page - $1000 Half Page - $600 Quarter Page - $350 Front Banner - $600 (limited number) Banner - $300 Half Banner - $200 Pipeliner $100 DISCOUNTS: 1 year - 15%, 6 months - 10%

• Distributed to the community in general through these ﬁne publications, Alaska Highway News, Dawson Creek Daily and Fort Nelson News. • Distribution by mail and direct drop-off to Oil & Gas companies,and related businesses and organizations, in the following communities: BRITISH COLUMBIA – Arras, Baldonnel, Cecil Lake, Charlie Lake, CHETWYND, Clayhurst, DAWSON CREEK, Farmington, FORT NELSON, FORT ST. JOHN, Goodlow, Groundbirch, HUDSON HOPE, Moberley Lake, Pink Mountain, Pouce Coupe, Progress, Rolla, Rose Prairie, Sunset Prairie, Taylor, Tomslake, TUMBLER RIDGE, and Wonowon. ALBERTA – Baytree, Bear Canyon, BEAVERLODGE, Berwyn, Bezanson, Bonanza, CLAIRMONT, Eaglesham, FAIRVIEW, Falher, Girouxville, GRANDE PRAIRIE, Grimshaw, Grovedale, HIGH PRAIRIE, Hines Creek, Hythe, LaGlace, MANNING, McLennan, PEACE RIVER, Rycroft, SEXSMITH, Silver Valley, Spirit River, VALLEYVIEW, Wembley, and Worsley, Zama City.

• PIPELINE NEWS NORTH

DECEMBER 16, 2016

EDUCATION Businesses, SD60 recognized for trades training MATT PREPROST editor@ahnfsj.ca

School District 60 received $5,000 and a special recognition last week for its work in getting youth ready for a career in the trades. The Industry Training Authority travelled to Fort St. John on Thursday, Dec. 1, to recognize the district for having the highest enrolment in the Northeast in the Youth Work in Trades program. The district received a performance award and $5,000 to continue developing the program. “It gives a really good opportunity for students to go into the workplace, to see what it’s actually like,” said Gary Herman, CEO of the Industry Training Authority. Students in the Youth Work in Trades program receive dual credits for their high school and post-secondary education, with 80 per cent of training taking place on the work site, with the remaining 20 per cent in the classroom. Students receive their high school diploma, along with 600 hours of apprenticeship time to get a jump start on their career after graduation. “When they finish high school, there’s a good chance to get hired on and finish the apprenticeship with that employer,” Herman said. Grade 12 student Justin Fehr has been working as glazier apprentice at Peace Glass since May 2015, learning how to cut and install glass, along with framing and mounting. Fehr, whose fatger owns Peace Glass, said he saw it as a good job opportunity. “I wanted to leave my options open for either taking up a career or going to university,” he said. “I knew if I went to university, it would provide a good job to make money and pay for tuition.” While Fehr plans to attend bible school for personal strengthening after graduation, he sees long-term value in having a skilled trade to carry him throughout a career. “I enjoy trades because it is a challenge,” he said. “Different challenges with being more efficient and just learning how to be accurate and precise with what you’re doing. Sometimes, for me, when I cut glass, if you put too much pressure, you get what’s called a ‘hot cut’ and it has really rough edges. With the right pressure, you get a nice, shiny edge. “You get to take pride in your work. You usually get to see what your hands have made. That’s satisfying.” Meanwhile, the ITA also recognized 28 local employers that are putting apprentices to work last week. Among them was Arctech Welding and Machining, who currently has four apprentices on the job, and has been employing them for roughly 15 years. “They’re part of a long-term plan,” President Dave Diehl said. “We invest in to them and they grow up into the company. Some stay, some go on. Some finish their apprenticeship with us and work for us for a few years then start their own business.” Other businesses recognized by the ITA included Brass Apple, DRS Energy, D-W Wilson Services, Epscan Industries, FSJ Oilfield, Waydago Vac Services, and Viper Innovation. One million jobs are expected to open up in B.C. between now and 2025, Herman said, with 123,000 jobs available in the trades. “There’s no better time in the history of B.C. than to be considering a career in the trades because of what the opportunities are going to be moving forward,” he said.

Justin Fehr speaks about his experience as a glazier apprentice and how it’s helped guide him on his education path.

FSJ Oilfield and DRS Energy were just two of many local businesses recognized by the Industry Training Authority for the work in apprenticeship training.

INDUSTRY TRAINING AUTHORITY PHOTOS

School District 60 Superintendent Dave Sloan and Assistant Superintendent Doug Boyd accept a performance award from the Industry Training Authority last week.