PNN JULY 20 2018 by Pipeline News North

SPOTLIGHT: Busting the myth of the man camp / 8 JULY / AUGUST 2018

PIPELINENEWSNORTH.CA

PIPELINE NEWS NORTH VOL. 10 ISSUE 7 DIST: 11,600

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

FREE!

A STACK OF PIPE RECENTLY DELIVERED TO THE FORT ST. JOHN RAILYARD

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

• PIPELINE NEWS NORTH

JULY 20, 2018

9th Annual FSJ Oilmen’s FAMILY CAMP WEEKEND August 10th - 12th

EVENT INFORMATION

• The 9th Annual Oilmen’s Family Camp Weekend is an event the entire family can enjoy. Friday will be registration day between 4-8pm, set up camp, meet and greet, kid’s activities and dinner. We have planned for scavenger hunt, wagon rides and a movie on the big screen. • Saturday we have various planned events at the campsite for all to enjoy and food is provided. Activities include a multiple of team challenges and wagon rides. Duck Auctions and Reverse Draw after the sponsored dinner. Movies and popcorn on the jumbo screen in the park. Just like last year there is still a change to the boating and ATV events. We encourage everyone that would like to boat or quad to bring them but, there is no scheduled event or lunch provided as in the past. • Sunday is highlighted by helicopter rides for the kids followed by games, crafts, bouncy castles, wagon rides, and ﬁre trucks. To wrap up the weekend Bailey Helicopters drops 600 ducks into the Peace River for the 9th Annual Duck Race.

Any Questions regarding registration feel free to contact Carl Lehr (778) 825-2264 or Chris Clay (250) 264-2729

JULY 20, 2018

PIPELINE NEWS NORTH •

COMMENTARY

VANCOUVER SUN PHOTO

Anti-Trans Mountain protesters plan to rappel from Vancouver’s Ironworkers Memorial bridge as part of an aerial blockade of oil-tanker traffic.

Hypocrites protest natural resources while using them

arlier this month, seven protesters suspended themselves from the Ironworkers Memorial Bridge in Vancouver to protest the Trans Mountain Pipeline expansion project. I know like many of you, I read about this latest protest against natural resource development and couldn’t help but note that many of those protestors were wearing and using items that came from the resources they were protesting. The responsible development of our natural resources is essential to the growth of our national and local economy. Not only that, but there’s no getting around the fact that in today’s society we all use products that come from oil, gas, and other natural resources. Practically speaking then, we need to develop these resources in order to use them. We all know the obvious oil products like gasoline and motor oil, as well as the natural gas used to heat our homes and the wood to build them. But there are many other resource-based products that use plastic (an oil product), steel (metallurgical coal), and glass (natural gas is required for production) that I would argue would be virtually impossible to live without. Eyeglasses, telecommunications towers, hospitals, houses, wastewater pipes, satellites, cell phones, laptop computers, televisions, buses, cars,

light bulbs, electrical equipment, ambulances, wheelchairs, tires, hospital beds, bicycles, hip replacements, and toilet paper are all made using natural resources. And these are just a few examples. As you can see, if we were to remove all products that are manufactured with oil, gas, or other natural resources there wouldn’t be much left. That is why I find it so frustrating seeing photos of protests like the recent bridge incident or listening to some Members of Parliament in the House of Commons speak against projects like the Trans Mountain Pipeline, or even get arrested at an antipipeline protest, knowing full well that they are taking the same planes I am to get to and

from Ottawa. While I don’t challenge their right to their beliefs, Canada is a great place where we are all supposed to be able to voice our opinion, it is the absolute position they have against developing our resources while using the very same resources that I have a problem with. How can someone support a moratorium on natural resource development while at the same time using these products on a daily basis? To me, this is an untenable position. To use natural resources and at the same time oppose their development is hypocrisy and it simply doesn’t work. It is why I continue to highlight this hypocrisy with the #stopthehypocrisychallenge. We need to have a practical and honest perspective when discussing our environment and the development of our natural resources. We all need to realize that we need natural resources to function in today’s society. We can be good stewards of the environment and our natural resources so that all Canadians can enjoy the benefits of both.

Bob Zimmer is member of parliament for Prince George-Peace River-Northern Rockies.

• PIPELINE NEWS NORTH JULY 20, 2018

OUTLOOK

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

West Moberly First Nation Chief Roland Willson.

First Nations receive $620 million in LNG Canada pipeline contracts NELSON BENNETT

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

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

BRENDA PIPER SALES ASSOCIATE 250-785-5631 bpiper@ ahnfsj.ca

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

First Nations along the corridor for the gas pipeline that would feed the LNG Canada plant in Kitimat have signed agreements worth $620 million in support of the project, including several First Nations and businesses in Northeast B.C. TransCanada Corporation announced June 26 that it has signed agreements to provide $620 million worth of contracts to more than a dozen First Nations governments and businesses. Another $400 million worth of contract and employment opportunities for First Nations is expected to be awarded. “This amount of contracting work awarded to First Nations businesses and communities is unprecedented in British Columbia for a pipeline company,” said Karen Ogen-Toews, CEO of the First Nations LNG Alliance. “And it tells an important story — that there is strong First Nations support in BC for responsible LNG development, and for the natural-gas projects and pipelines that will feed the export plants.” The announcement comes on the heels of a previous announcement that indicates the companies behind the $40 billion LNG Canada project may be getting close to a final investment decision. On June 19, TransCanada announced that it had conditionally awarded contracts to several joint ventures to build the Coastal GasLink pipeline: Surerus Murphy Joint Venture, SA Energy Group, Macro Spiecapag Joint Venture and Pacific Atlantic Pipeline Construction Inc. Those contracts are valued at $2.8 billion. Among the First Nations that have signed contracts with TransCanada are Doig River, Saulteau, and West Moberly. Fort Nelson-based M&M Resources has also been selected for work. “We’ve been talking to Coastal GasLink for five years now and are glad to see that this day is finally here,” said Doig River Chief Trevor Maka-

dahay. “Doig River is proud of the reciprocal business relationship that we negotiated with Coastal and we are looking forward to the contracting and employment opportunities that will emerge once construction starts. We know that the safety of land is as important as safety of people and through our negotiations with Coastal GasLink we’ve learned that they share this priority. “ In 2014, West Moberly Chief Roland Wilson warned the provincial government that moving ahead with Site C dam could result in his people opposing any LNG development. “I’ve said you can’t have both,” Wilson said, according to CTV and other media. “If you want to push Site C, we’re not going to be in favour of any LNG projects, any of the pipeline projects up there. We don’t want to be there but if that’s the case, we don’t have any other choice.” But Wilson now appears to be fully supportive of the project. “This is a major milestone for West Moberly First Nations,” he is quoted as saying in a press release. “Our team has worked diligently over the past five years to ensure that our cultural and environmental principles are protected, and we continue to work closely with the Coastal GasLink team to maximize the economic benefits for our community members and future generations.” Other First Nations that are supporting the project and receiving contracts include the Lheidli T’enneh, Wet’suwet’en First Nation, Burns Lake Band, Skin Tyee, and Saik’uz. Five First Nations businesses have also signed agreements for contracts, including two that provide remote work camp services. According to TransCanada, 95% of the First Nations along the 670-kilometre pipeline corridor, from Dawson Creek to Kitimat, have signed agreements, and to date, one-third of the field work already done has been by First Nations contractors. — Business in Vancouver

JULY 20, 2018

PIPELINE NEWS NORTH •

OUTLOOK July sale adds little to coffers After a remarkable June that brought in more than $42 million, B.C. saw its earnings plummet to practically nothing at its sale of petroleum and natural gas rights this month. The province netted a paltry $26,938 on the sale of two drilling licences on July 11. Scott Land and Lease picked up the licences, one for $16,732.32, and another for $7,357.68. Both cover 264 hectares northeast of Inga Lake and the Alaska Highway. It’s a far cry from the June sale, which was buoyed by Landsolutions GP Inc. picking up a drilling licence for $42.05 million near Halfway River First Nation. The province has earned rough-

ly $60 million from land sales so far this year. Compared to 2017, the province had brought in $155 million through July. Most of that was on the backs of two drilling licences: one for $35 million near Dawson Creek in January, and another for $77 million at Inga/Altares in July. Year-over-year, industry has picked up 51 drilling licences in 2018, down from 53. Industry has picked up another 22 leases for the year, down from 26 in 2017. The July sale also marks a new low for 2018. The previous low was in April, when the province brought in $202,000 on the sale of two drilling licences. The next sale is set for Aug. 15. — Pipeline News North

‘Significant’ liquids at South Townsend Painted Pony Energy Ltd. says two wells drilled on the northern edge of the South Townsend block in the Montney have yielded ‘significant’ liquids. Preliminary results indicate production levels higher than Painted Pony management’s Townsend type curve and include higher liquid yields compared to previous wells in the Townsend block. South Townsend results Painted Pony drilled two Lower Montney horizontal test wells from a single pad to vertical depths of approximately 2,000 metres and lateral lengths of approximately 1,900 metres. These wells were completed using an open-hole ball drop system and a modified completion program. Static gradient pressure tests indicated that both wells were approximately 1.8x over-pressured. Both wells are currently pipeline connected to the AltaGas Ltd. Townsend Facility. d-F57-H/94-B-9 well The first well, d-F57-H, averaged an estimated production rate of approximately 3,600 boe/d, 41 per cent liquids, during the initial 24 hour test period of stabilized production flow. This production rate included 12.7 mmcf/d of natural gas and an estimated 1,475 bbls/d of natural gas liquids (85 per cent condensate). During the final 24 hours of the

seven day production test period the d-F57-H well averaged a production rate of approximately 3,000 boe/d (38 per cent liquids) including 11.1 mmcf/d of natural gas and an estimated 1,140 bbls/d of natural gas liquids (83 per cent condensate). d-E57-H/94-B-9 well The second well, d-E57-H, averaged an estimated production rate of more than 2,300 boe/d, 39 per cent liquids, during the initial 24 hour test period of stabilized production flow. This production rate included 8.6 mmcf/d of natural gas and an estimated 900 bbls/d of natural gas liquids (82 per cent condensate). During the final 24 hours of the 14-day production test period the d-E57-H well averaged a production rate of over 2,275 boe/d (38 per cent liquids) including 8.5 mmcf/d of natural gas and an estimated 865 bbls/d of natural gas liquids (82 per cent condensate). These production rates are higher than Painted Pony management’s Townsend type curve. Increased overall natural gas and significantly higher liquids production rates position the South Townsend block to potentially deliver the strongest economics in Painted Pony’s portfolio of properties. — Pipeline News North

INTRODUCING THE LG900 WOOD PELLET BARBEQUE

THE ALL-IN-ONE WOOD PELLET GRILL & BARBEQUE SEAR • BARBEQUE CHAR-GRILL • SMOKE GRILL • ROAST BAKE • BRAISE

11111 – 100th Street, Grande Prairie, AB Mon – Fri: 9am to 6pm Sat: 9am to 5pm

780-538-1987 • www.gasfireplace.net

METAL ROOFING & SIDING NOW DOING RE-ROOFS AND NEW INSTALLS

• 11 different profiles & 26+ colours • Agricultural & Industrial • LOWEST PRICES!

Call Joseph 250-794-6618

40 YEAR WARRANTY

Milligan Creek Steel

a division of:

Visit our website www.versaframe.ca

Please Recycle this Newspaper

R0011499157

MATT PREPROST

• PIPELINE NEWS NORTH JUNE 15, 2018

COMMUNITY Encana supports Pouce Coupe fire department AUSTIN COZICAR When the Pouce Coupe fire department were on the scene of a recent fire on an Encana wellsite on 211 Rd south of the village, the squad sustained equipment damage. Thanks to their efforts — along with other local fire departments — the fire was put out, but not without cost to village firefighters. “Unfortunately, once the work was done and the fire was out, the village fire department had sustained damage to some of our gear, which rendered the gear unusable,” said Mayor Lorraine Michetti. As a token of their appreciation, Encana lit the match and covered AUSTIN COZICAR PHOTO the bill — $23,797.20. CAO Chris Leggett, Deputy Fire Chief Scott Lefresne, Fire Chief Blair Deveau, Mayor Lorraine Michetti, Encana Senior Community Encana Senior Community Relations Advisor Brian Lieverse, and Councillor Andre Lavoie show off $23,000 in new equipment. Relations Advisor Brian Lieverse came to Pouce fire hall on July 3 to you would be expecting to go because we ended up dealing department so you can continue thank the firefighters in person. fight a fire, but I think your effort with what was basically a large to serve your residents and also “I want to thank everyone in the showed greatly of your training vehicle fire and it didn’t expand to the industry in the area.” Pouce Coupe fire department,” he and your abilities as a volunteer anything worse than that,” he said. told the firefighters. “I know that’s fire department, and we’re very “We’re very happy to make not typically a location where thankful you showed up that night this donation back to the fire — Pipeline News North

Veresen makes $10K splash for free family swimming AUSTIN COZICAR When the City of Dawson Creek was looking at losing revenue from offering swimming; Veresen Midstream jumped right into the pool. City council floated an initiative allowing families and children to swim for free in summer months at the Kenn Borek pool. With family and children rates at $18.38 and $5.25, the city was looking at a $20,000 loss in revenue. Mayor Dale Bumstead reached out to Veresen Midstream to help support the initiative. He was surprised by the answer. “I’d hoped we could squeeze $1,000, or a couple thousand, to help offset a $20,000 gap we anticipate of lost revenue by opening it up for the free swim over the summer,” he says. AUSTIN COZICAR PHOTO “Veresen stepped up and said WATCH OUT FOR THESE SHARKS! Councillor Charlie Parslow, Mayor Dale Bumstead and councillor/ local area prankster Terry McFadyen we want to give $10,000, so we’re surround Leanne Chartrand with Veresen with a cheque pass for free swimming in Dawson Creek. Dive in! absolutely knocked out that we got this kind of support from industry.” easy. both Dawson Creek and Fort St John $10,000 to the initiative.” Leanne Chartrand, a community “Veresen Midstream has a number areas, so we want to make sure that affairs advisor with Veresen of facilities in the area, a number of we’re present in the communities. Midstream, says the decision was staff that work in the Peace Region, “We’re happy to contribute — Pipeline News North

JUNE 15, 2018

PIPELINE NEWS NORTH •

OILMEN

DILLON GIANCOLA PHOTO

High Overall winner Tyler Mikkelson, far right, with the rest of Team Caltech at the 2018 Oilmen’s Trapshoot.

Tyler Mikkelson wins third Oilmen’s Trapshoot title DILLON GIANCOLA The 2018 Oilmen’s Trapshoot featured 79 shooters braving the morning rain to take part in the long-running event on July 7. Only 53 shot in the 2017 trapshoot. Tyler Mikkelson repeated as High Overall champ with 137 points, his third time winning in total. Twylight Pressure Controls were first place in Team High with a score of 600. “It was a great event. I shot well enough, but can always do better. I shot with some really great guys and couldn’t be happier,” Mikkelson said. The Oilmen’s Trapshoot committee, led by Shane Stirling, put a lot of effort into the event this year to draw more people out and make it more fun. They added another 25 rounds, and tweaked the scoring and shooting format. With 26 more people participating despite rain for most of the day, Stirling couldn’t have asked for anything more. “We were very impressed. There were a few no-shows, and none due to the weather. If anything, the rain increased the camaraderie, as everyone gathers together under tents or the club house instead of spreading out by themselves,” Stirling said. Mikkelson agreed that the changes made the event better this year. “The extra rounds and more shooters kept the pace up, which is a welcomed addition. It’s great to see the attendance up,” said Mikkelson. Mikkelson was thankful for the work that Stirling and the committee have put in to improving the trap shoot each year and ensuring that it takes place, rain or shine. — Pipeline News North

DILLON GIANCOLA PHOTO

Burke Forster reloads after firing a round at the 2018 Oilmen’s Trapshoot on July 7.

RESULTS Team High 1. Twylight Pressure Controls - 600 2. Rapid Wireline - 585

AAA 1. Terry Wilson - 94 2. Matthew Stockley - 93 3. Tyler Mikkelson - 93

B 1. Sacha Plotnikon - 74 2. Carter Barron - 74 3. David Kellestine - 71

High Over All 1. Tyler Mikkelson - 137 2. Dave Wallace - 132

AA 1. Dino Soucy - 85 2. Curtis Fell - 85 3. Jeff Gunton - 85

C 1.Daniel Hlodak - 66 2. Norton Hunt - 66 3. Dustin Stirling - 66

A 1. Troy Mckay - 80 2. Wayne Carlson - 80 3. Bruce Bell - 80

D 1. Karl Waugh - 58 2. Gordon Westergaard - 58 3. Jeff Stone - 57

High Senior 1. Mike Nielsen - 131 Low Over All 1. Gil Wilson - 43

• PIPELINE NEWS NORTH JULY 20, 2018

SPOTLIGHT

Busting the myth of the man camp AUSTIN COZICAR & ROB BROWN What in the frac is a man-camp? It’s a colloquial term for housing set up for temporary resource workers in an area. Depending on who you ask, some man camps come complete with gyms and four-star chefs. Others say they come with illegal drug use, rape, and sex disease. To quote one man-camp warning poster, the camps “negatively effect, women, girls, children, low income families, Indigenous Food Sovereignty, also causing increases in rent and fentanyl use.” “Increase local rates of sexual assault, intimate partner violence as well as many increases in sex crimes and STI, drug and violence increases.” Not so and nope, says Dawson Creek Mayor Dale Bumstead. He says hasn’t seen, heard, or felt any issues with camps. “We haven’t had anything I’m aware of that has created negative social issues for us, in terms of additional burdens on health or policing or things like that. I certainly haven’t heard that, or seen that, or felt that. That hasn’t been the issue.” Man camp is a term Jason Markusoff over at Maclean’s says Kanahus Manuel picked up at the Standing Rock protests in North Dakota. “These man camps are the ones that are going to construct this evil pipeline, and those workers are going to bring in their rigging culture, their sex trade, violence and alcohol culture,” says Manuel, a member of the Secwepemc Women’s Warrior Society, writes Markusoff. Seemingly anyone related to the industry takes some kind of exception. “Any boomtown is gonna have, drugs, booze, fights, whores, etc. That’s what happens when there’s lots of cash to piss away. And that’s if they are staying in

town,” says Delvin James Rach on Good Times in the Oilpatch recently. Brandi Morin, News Energy and Politics with The National Observer, predicts over the next decade as many as 6,000 new energy industry workers could descend upon the northern and central regions of BC. “The prospect of such a big influx of workers living in nearby ‘man camps’ has aroused fears of increased violence and drug use,” she writes.

Those damn dirty riggers A “dirty rigger” culture may exist, but the reality is many are dry camps. “Like camp attendants would let someone forcibly drag a woman through the doors and into his room. And almost every camp now is dry and oil companies are sending people home who they know are going to town and partying cause they are unfit for duty,” adds Rach. Seems to be the case. “Our camp was a dry camp, so that meant we had no drugs or alcohol permitted on the premises. So it eliminates some of the issues that may come about as a result. We did do from the camp, services. We did utilize a number of local services — some of them were cleaning staff, catering staff, security, they were local, as well as supplies, so we were able to utilize some local trucks, or companies that hauled water to and from,” says Brian Lieverse, Encana Senior Community Relations Advisor. “We did have a big camp for about two to three years. At peak times, we had approximately 1,500 people staying at that camp.”

Peace camps planned With their project update to the PRRD

SUPPORT NORTHEAST B.C.’S OIL & GAS SECTOR! PIPELINE NEWS NORTH IS LOOKING FOR ENGAGED, COMMUNITY-MINDED WRITERS AND PHOTOGRAPHERS TO HELP US SHARE THE STORIES ABOUT OUR LOCAL INDUSTRY AND THE MEN AND WOMEN IN THE FIELD. INTERESTED? EMAIL EDITOR@AHNFSJ.CA TO LEARN MORE!

earlier this year, Coastal GasLink’s Kiel Giddens and Catie Underhill noted camps were part of the plan should Coastal GasLink’s proposed pipeline project from Dawson Creek to Kitimat be approved. “Construction facilities will follow strict rules for conduct to ensure a safe and harassment-free camp environment. Our organization has a zero tolerance for anything less. We want to ensure this is done safely and done right,” says Jacquelynn Benson with TransCanada A Chetwynd multi-use, Sukunka River multi-use and drill camp are all slated and have proposed camp locations. Documents reveal anywhere from 550 to 800 workers will be brought into the area in relation to Coastal work. “For TransCanada, safety is paramount. It is a core principle and a critical component to the work that we do every day, and the Coastal GasLink project will be no different,” says Benson. “The project team will work with our contractors to ensure local hiring comes first, giving priority to qualified local and Indigenous businesses in northern BC,” she adds. Documents reveal that during construction and operation, millions of additional dollars in contracting, employment, business and tax revenues will be available for local and Aboriginal communities to support local needs such as fire and police services, school districts, hospital districts, waste management and more. With the Peace Region’s proximity to Alberta, the area draws contractors and work who work from our provincial neighbours. This does create a unique financial problem for the region, according to the Northeast BC Resource Communities Coalition. — Pipeline News North

BLACK DIAMOND GROUP

Above, the new Little Prairie Lodge in Chetwynd, operated through Black Diamond Cygnus, a partnership between the company and the West Moberly First Nations, on whose traditional land the facility is located.

JULY 20, 2018

PIPELINE NEWS NORTH •

Camps vs. hotel rooms AUSTIN COZICAR

Camp contracts in place for LNG Canada pipeline DEBORAH JAREMKO Black Diamond Group is the latest oilfield service company to announce success in a flurry of contract awards for the Coastal GasLink Pipeline, which will service the LNG Canada project. The company announced it has secured a conditional $42.5-million contract for remote workforce accommodations for Coastal GasLink. Like the rest of the contracts announced to date, it is conditional on Shell and its partners announcing a positive final investment decision on LNG Canada, which is expected this year. Black Diamond said that in connection with its indigenous partnership with the West Moberly First Nation, it has conditionally secured a 908-bed turnkey camp contract for 27 months to service the construction of the pipeline project. The

camp will be constructed utilizing the company’s existing accommodation assets and any associated new capital investment required is expected to be nominal, Black Diamond said. “We view this contract award positively for Black Diamond Group, as the company does not own any land in Kitimat, so this gives them some guaranteed exposure if LNG Canada proceeds,” GMP FirstEnergy analyst Ian Gillies wrote in a research note. “We now believe all camps contracts for the Coastal Gaslink pipeline have been awarded and the next tranche of camp awards will be focused on the facility site.” Pipeline construction is expected to begin in early 2019. Horizon North gears up Horizon North Logistics is ready for new opportunities on the way should the LNG Canada partners do what is expected

and make a positive FID later this year. The Calgary-based provider of modular construction and industrial services closed a $50 million equity financing. Approximately half of the financing will be used to pay down debt in order to “take advantage of opportunities associated with new LNG projects in Western Canada,” the company said. “Horizon North currently owns 57 acres of land in Kitimat, which is zoned for camp, commercial and residential development,” Peters & Co. analyst Jeff Fetterly wrote in a research note. “Upon a positive FID from LNG Canada, we expect Horizon North will operate a camp in Kitimat with up to 1,000 beds and complete the custom sale of up to two modular hotels (total of 150-200 beds).” — JWN Energy

Why pitch proverbial tents in and on man camps, when Dawson Creek, Chetwynd, and others have hotel rooms? It’s a numbers game. “The City of Dawson Creek doesn’t have that many hotel rooms that we can accommodate that number of workers,” says Mayor Dale Bumstead. “The aspect of camps for us is always trying to make sure we balance the impacts to our service sector — our hotels and restaurants — when we’re either supporting or not supporting the concept of somebody making an application,” he adds. Brian Lieverse, Encana Senior Community Relations Advisor, says the challenge, for example, is there aren’t 1,500 rooms available in Dawson Creek. “Without a work camp, the project would have taken a lot longer to complete.” “There’s approximately 1,000 rooms in Dawson Creek, so 1,500 we take all the rooms in Dawson Creek, which has a negative (impact), because we take all the hotels, but also the restaurants. They do have a need at times, and they’re definitely needed.” Bumstead says it’s about balance. “Right now, (Encana) is an open camp, and so for us, that’s always the worry about how it impacts our hotels. Because if they’re not full, then the camps are then competing for that business that would normally be staying at our hotels, and the camps are always looking for the services from the city for our water and sewer services. So we really push them in terms of that message about ‘if you’re going to be competing with us, we need to have you supporting the community as well.’ That’s the balance.” Lieverse agrees. “It was an opportunity for us to utilize some local services, so we did try to maximize that as much as possible. A lot of what we also did with the camp was we had First Nations partnerships, so the camp was ran by Black Diamond, and I believe West Moberly also has partnership with them, similarly we had partnerships with Salteau First Nations, as well as McLeod Lake,” he says. “We were right upfront with communities, whether it was the Peace River Regional District, or Fort St John or Dawson Creek, we were upfront with our need for the camp, and the reasoning for the need for it. So I think we had a very positive relationship with communities.”

• PIPELINE NEWS NORTH

JULY 20, 2018

POLICY

B.C., Blueberry River First Nations negotiate trial adjournment The Province of British Columbia and Blueberry River First Nations have agreed to adjourn pending litigation until Oct. 15, 2018, as an outcome of productive negotiations. The Province and Blueberry River are continuing discussions outside of court, to collaboratively address Blueberry River’s concerns about the effects of resource development in their territory and on their Treaty 8 rights, including hunting, fishing and trapping. Measures that B.C. and Blueberry River have agreed to work together on include: * Collaboration on land-use planning in the Fort St. John timber supply area, as part of a process that engages all Treaty 8 First Nations, stakeholders, and the public; * Restoration initiatives, including work on restoring important wildlife habitat; * Measures related to wildlife protection, including moose monitoring in critical areas; and * A commitment to develop new First Nations consultation processes intended to create a more collaborative approach to resource development approvals. The adjournment signals a renewed

commitment by the provincial government and Blueberry River to work together as partners to balance sustainable resource development and environmental stewardship for future generations. Consultation and approval processes for forestry and oil and gas activities in areas of interest for Blueberry River will continue while discussions are ongoing.

Interim measures

The B.C. Oil and Gas Commission has announced new interim measures to address concerns of the Blueberry River First Nation over oil and gas development activities in critical areas of its territory. A new Regional Strategic Environmental Assessment Interim Measures Agreement has been signed by Blueberry River, the Ministry of Energy, Mines and Petroleum Resources, the Oil And Gas Commission, and the Ministry of Forests, Lands, Natural Resource Operations and Rural Development. It will apply to defined areas within the First Nation’s traditional territory.

“The agreement is designed to address immediate concerns with respect to petroleum and natural gas development activities in BRFN’s critical areas while supporting the access and development of resources in specific areas identified by the parties,” the commission said in an industry bulletin released July 11. “There are critical areas where new surface disturbance will not be permitted or will be restricted and other areas where development activities will be managed.” Within Area 2, the management objective is “restricted new surface disturbance.” New surface disturbance may occur provided the disturbance meets one of the following conditions: Within Areas 1 and 3 the management objective is “no new surface disturbance.” Applications that could result in new surface disturbance and do not meet the new surface disturbance criteria for Area 2 above will be referred for additional review and, if approved, will require timely offset restoration. Operators will be required to submit a mitigation strategy for any activity impacting enhanced management and regulatory policy areas.

PIPE GRAPPLES Tough Brandt Pipe Grapples defeat downtime with exclusive features like HTTC-certified steel and concealed hose routing. And, a dual cylinder overarm with a pressure-reducing valve makes sure you always have the perfect hold for a wide variety of pipe. That’s Powerful Value. Delivered.

brandt.ca 1-877-533-3133

JULY 20, 2018

PIPELINE NEWS NORTH •

OPERATIONS

Enbridge selling $4.3 billion worth of natural gas assets in B.C, Alberta A flight of capital from Canada’s oil and gas sector appeared to continue Wednesday, but this time the company doing the selling is a Canadian company, not an international energy giant. Enbridge Inc. announced July 4 that it is selling its natural gas gathering and processing network in B.C. and Alberta to Brookfield Infrastructure for $4.3 billion. The sale includes 19 natural gas processing plants and gathering pipeline systems in northeastern B.C. and in Alberta, which Enbridge collectively calls its G&P business unit. Those processing plants serve the Montney, Peace River Arch, Horn River and Liard basins of B.C. and Alberta. Jihad Traya, a natural gas analyst with Solomon Associates, does not see the sale as part of a greater flight of capital by oil and gas companies. He points out that it’s not a complete retreat from Canada, as the company plans to keep its Westcoast natural gas pipeline, which stretches from the Yukon, Northwest Territories and northern Alberta to the Lower Mainland, where it supplies Fortis BC with gas. It is also retaining its Alliance pipeline, which runs from Western Canada to Chicago. “These are not the crown jewels of Enbridge,” Traya said. “It’s not an exit. They still retain the

Spectra-Westcoast system and the Alliance. By no means is this a sign of exit. I think it’s just Enbridge had an opportunity to clean up a balance sheet and reposition itself.” According to Enbridge, Brookfield plans to keep the Canadian G&P workforce. Enbridge president Al Monaco said the divestment was part of a company strategy to become a pure play pipeline company. “When combined with asset monetizations announced in May, the sale of our Canadian G&P business significantly advances our strategic priority of moving to a pure play regulated pipeline and utility business model,” Monaco said in a press release. Enbridge is also trying to reduce its debt, which ballooned when it merged with Spectra Energy in 2016. The company is also now focused on its $7 billion Line 3 replacement project, which just received approval from the Minnesota Public Utilities Commission on July 2. Enbridge spent roughly $500 million trying to get its Northern Gateway pipeline through B.C. approved, only to have it killed by the Trudeau government. However, the Trudeau government did approve the Canadian segment of Enbridge’s Line 3 replacement project. — Business in Vancouver

HAVE A STORY TO SHARE ABOUT OUR LOCAL INDUSTRY? INTERESTED IN WRITING ABOUT OUR LOCAL INDUSTRY? EMAIL EDITOR@AHNFSJ.CA

Please Please recycle this newspaper recycle this newspaper.

Competitive, genuine 1x2

Perkins

keep your engine running

efficiently and effectively 11115 - 100 Avenue, Grande Prairie, AB T8V 3J9

780-532-5900 780-532-5900

1.888.532.5900 www.gprindustries.com

Please recycle this n 2x1.5 Dealer

R0011360253

NELSON BENNETT

• PIPELINE NEWS NORTH

JULY 20, 2018

ANALYSIS

Montney vs. Deep Basin:

Which of Canada’s biggest natural gas plays has the edge? The Montney and Deep Basin are the two hottest natural gas plays in western Canada, but which one has the edge? JWN Energy and sponsor Halliburton wanted to answer this question, and leveraged the CanOils database to develop a benchmarking study based on 2016 and 2017 financial and operating data. Both the Montney and Deep Basin plays saw a major uptick in activity in 2017 compared to the previous year, with rig releases rising 46 per cent in the Deep Basin and 89 percent in the Montney. Activity has remained strong in early 2018. Deep Basin has the supply cost advantage While both Montney and Deep Basin operators continued cutting costs and improving productivity, companies in the Deep Basin were more successful, enjoying a nearly $4/boe advantage over Montney producers in 2017. In the Deep Basin, operating costs decreased by six percent in 2017 as new facilities were brought onstream, while operating costs rose by eight percent in the Montney as producers targeted more liquidsrich areas of the field. Montney operators have seen their three year average finding and development costs climb by 10 per cent from 2016 to 2017, while Deep Basin operators have seen their F&D costs decline by 22 per cent. In 2016, the Deep Basin had costs almost $2 per boe higher than in the Montney but now enjoys a cost advantage. Deep Basin operators had a 30 per cent full cycle cost advantage over

Montney operators in 2017. Full cycle costs declined 10 per cent in the Deep Basin in 2017, while costs in the Montney climbed by six per cent. Montney has the netback advantage Despite much lower full cycle costs, the Deep Basin trails the Montney when it comes to operating netbacks as the mix in production outweighs Deep Basin cost efficiencies. Higher liquids production in the Montney gives it a $2.26 per boe netback advantage over the Deep Basin. Seven Generations Energy provides an example of the liquids advantage: one-third of the company’s production is condensate, but it accounts for twothirds of the company’s revenues. Looking ahead While Montney and Deep Basin operators reported improved field netbacks in 2017 compared with the previous years, they both face challenges in 2018. With lower to no condensate production, Deep Basin operators are cutting capital expenditures while waiting for higher natural gas prices to make investment viable. For Montney operators, costs are slowly creeping up. Operators in liquids-rich areas of the play are still seeing strong netbacks but outside of these areas they are facing a similar situation to Deep Basin operators with low gas prices curtailing activity. — JWN Energy

Analysts bullish with pipelines, LNG Canada momentum DEBORAH JAREMKO Recent improvements in commodity prices have done little to benefit the stocks of Canadian oilfield service companies, but analysts with GMP FirstEnergy see a light at the end of the tunnel. Patience is a virtue that will be rewarded for oilfield service investors, the investment bank said in a research note. “Weak oilfield services returns

year-to-date are the result of a tepid view on the Canadian energy sector given wide Canadian crude differentials, soft AECO prices, significant regulatory constraints and macro headwinds (such as the potential for a weakening Canadian dollar, NAFTA renegotiations, et cetera),” analysts said. While the 12-month outlook for these companies is neutral, as egress issues in both Canada and the Permian Basin are expected

to keep a cap on activity and price increases, longer term the business appears to be picking up. “A key factor in Canadian oilfield services stocks rerating is the Canadian energy industry providing demonstrable proof that it can surpass the regulatory and egress hurdles that have weighed on the industry recently. Some of these events include a positive final investment decision

on LNG Canada, construction of the TransMountain Expansion, Keystone XL and Enbridge’s Line 3 Replacement,” analysts said. “Once this occurs, we would expect to see both an increase in oilfield activity and an improvement in investment sentiment in the space as producers ramp up in anticipation of improved economics.” — JWN Energy

JULY 20, 2018

PIPELINE NEWS NORTH •

INNOVATION UPS launches compressed natural gas fleet in B.C. DEBORAH JAREMKO UPS says it is closer to its goal of having 50 per cent of its Canadian fleet running on alternative fuels by the end of 2018, adding seven new compressed natural gas (CNG) highway tractors and 40 delivery trucks to its more than 2,900 vehicles in the country. As part of a previously announced $500 million investment in UPS Canada, a CNG fueling station has also been built in Vancouver, B.C. in collaboration with FortisBC. CNG emits 6 - 11 per cent lower levels of greenhouse gas emissions than gasoline throughout the fuel life cycle, UPS says. “This is the first Canadian province that UPS Canada chose to enter with natural gas vehicles because of the incentive funding provided by FortisBC which assists with the purchase of new CNG vehicles as well as our support in building and operating a fuelling station. UPS Canada now joins

UPS Canada introduces compressed natural gas vehicles and a fueling station in Richmond, B.C. Left to right: Floyd Bristol, vice-president of automotive, UPS Canada, Teresa Wat, MLA Richmond North Centre Riding, Douglas Stout, vice-president, market development and external relations, Fortis B.C.

numerous fleet owners and operators across North America

making the switch to natural gas so they can save on fuel costs

and shrink their environmental footprint,” FortisBC CEO Roger Dall’Antonia said in a statement. UPS says it takes a “rolling laboratory” approach to its fleet. “Vehicles with alternative fuel solutions are tested and deployed depending on terrain, climate and other local considerations. In Argentina, France, Germany, Netherlands, Thailand, U.K., and the U.S., UPS operates more than 3,800 CNG-fueled tractors and package cars. On June 19, the company announced a $130 million investment to build an additional five CNG fueling stations and add more than 700 new CNG vehicles throughout the U.S. Globally, UPS will have invested more than $1 billion in alternative fuel and advanced technology vehicles and fueling stations from 2008 through 2018,” the company says. — JWN Energy

Inventys raises $1M for carbon capture pilot with Husky TYLER ORTON A B.C. cleantech company’s bid to battle pollution is a step closer to reality after closing its second equity financing deal in a year. Burnaby-based Inventys Inc. announced July 16 that it’s landed US$11 million to help fund its 30-tonne-per-day carbon capture pilot plant with Husky Energy Inc. OGCI Climate Investments LLP, an industry-backed investment fund that includes BP plc and Royal Dutch Shell plc, led the latest funding round. “We’ve been leveraging government funding but we also need the private sector,” Inventys CEO Claude Letourneau told Business in Vancouver. “For us it’s a vote of confidence from the global energy leaders that we’re doing the right thing.” While chemical solvents known as amines serve as the backbone for most carbon capture technology, Inventys has developed a device that uses solid material known as adsorbents to adsorb and redistribute carbon. The company plans to open its Husky demonstration plant in Saskatchewan by the first quarter of 2019 with an eye for commercialization sometime in 2020. But the relationship with Husky extends beyond the pilot project. Inventys closed a $10-million equity financing deal almost exactly a year ago in a deal led by Husky. “We went to these customers, Husky being the first one, and said, ‘If you really want this, we need your support,’” Letourneau said, adding Inventys

Earlier this year members of the mechanical team were onsite in Saskatchewan upgrading the 0.5TPD RAM hardware. As the new adsorbent beds performed more efficiently, upgraded hardware was installed.

applied the same strategy to OGCI. After assuming the CEO role in March 2017 he said his strategy has been to target the oil and gas sector with Inventys’ technology “because you can monetize the C02.” The most notable outlets for monetization come from enhanced oil recovery (EOR), conversion into other products like cement and — to a much lesser degree — carbonating beverages. Inventys has been pursuing a CO2 Marketplace that would create the physical trade

https://burkegroup.ca/upload/ of CO2. Money raised from the latest round will also go towards the completion of Inventys’ manufacturing facility in Burnaby. The company has grown from 25 workers to more than 60 over the past 18 months as the technology gets closer to commercialization Existing investors Chevron Technology Ventures and The Roda Group also participated in the latest financing round. — Business in Vancouver

• PIPELINE NEWS NORTH JULY 20, 2018

IN BRIEF

TransCanada to proceed with NGTL expansion for 2021 TransCanada announced on Monday that it will move forward with a $140-million expansion of its NOVA Gas Transmission Ltd. (NGTL) system. Natural gas shippers in western Canada executed binding agreements in March to 280 million cubic feet per day of export service from the NGTL’s Empress delivery point in southeast Alberta. The contracts, which will commence in November 2021, have an average term of 22 years. NGTL also concurrently executed incremental intra-basin firm delivery service contracts with other shippers for an aggregate volume of 75 MMcf/d that contribute to the need for the

s nomic rt: Eco l Repo Specia ORTH.CA

PIPE

VOL. 8

ISSUE

Strath Resources doubles Montney position Privately held Strath Resources is doubling its Montney position with a $340 million purchase from Paramount Resources. Strath is majority owned by Waterous Energy Fund. It entered the Montney play in January 2017 and reports current production of about 16,000 boe/d, 52 per cent of which is liquids.

H S NORT

In 2016, the company sold $1.9 billion in Montney assets to Seven Generations Energy. Paramount said the deal with Strath allows it to capture the upside of the lands while it focuses on its core Montney and Duvernay assets. — JWN Energy

New Montney wells deliver strong results for Painted Pony Painted Pony Energy says two new wells drilled in the southern block of its land on the northeast B.C. side of the Montney play could provide the best economics in its portfolio. The wells, located in an area known as South Townsend, have yielded ‘significant’ higher value natural gas liquids at rates higher

G THE

SERVIN

STRY IN

S INDU

OIL & GA

B.C. RTHERN

Northern British Columbia and Alberta’s Oil and Gas Industry

FREE!

RTA

BE AND AL

,000

: 16 1 DIST

e of in plac urces ng reso nada r existi LNG Ca , ei 2 th 8 ting nce 19 Fort harves B.C. si e eyes cus on tals in at fo to er to le m lo sa nies t land a cong d compa rts, an G, and e lowes expect po th LN ts e ex of l ys ake dfibr e oi , anal the w r Woo up crud s hold ning fo . And in opens r take . an nd te .S pl in U yo be gins As w , the ucers. 16 and . prod border mish be for 20 for B.C of the , Squa ation South means permit explor t that export cilities. at wha -year LNG fa s 0 4 iok a in lo n gets b for m Maryo as a hu st Tim Nelson lumni new co

PRINT & ONLINE EXPOSURE

The assets from Paramount are in the same region as Strath’s existing operations, the Kakwa area of northwest Alberta. The deal includes 5,300 boe/d of current production (36 percent liquids), 201 sections of land with multi-zone potential, 62 mmcf/d of owned processing capacity at the Pembina 8-11 and Cenovus 1-36 Resthaven gas plants, 29 mmcf/d of firm service on TCPL and 4,000 bbls/d of firm liquids transportation. At the close of the transaction, anticipated in early July, Paramount will own 15.6 percent of Strath. Paramount CEO Jim Riddell will also join Strath’s board of directors. Paramount has been active in upstream M&A in recent years, having last summer purchased the assets of Apache Canada for $459 million and executed an allshare merger with Trilogy Energy.

/22 drum conun 2016 capture JANUARY / FEBRUARY n o rb .C.’s ca ent: B vironm vs. En

EW LINE N

ENEWSN PIPELIN

new facilities, TransCanada said. This new investment is a component of NGTL’s $7.3-billion multi-year infrastructure expansion program that will increase transportation capacity for Western Canada producers to downstream markets. — JWN Energy

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

Quarter Page vertical only 3 col x 90 ag (4.645” x 6.429”) 746

R001697

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”)

LOCATIONS THAT SUIT YOUR BUSINESS NEEDS

ADVERTISING RATES 2017 (Full Colour)

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 Banner number) - $300 Half Banner - $200 Pipeliner - $100 DISCOUNTS: 1 year - 25%, 6 months - 15%

CANCELLATIONS

Display ads cancelled after deadline will be invoiced at 50% of the invoiced rate.

• 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.

JULY 20, 2018

PIPELINE NEWS NORTH •

IN BRIEF than management’s expectations, the company said in a statement. “Painted Pony is encouraged by the results to-date and anticipates re-directing a portion of drilling activity within the existing 2018 development budget to better capitalize on these well results,” Painted Pony said. The company drilled two Lower Montney horizontal test wells from a single pad to vertical depths of approximately 2,000 metres and lateral lengths of approximately 1,900 metres. The first well averaged an estimated production rate of approximately 3,600 boe/d, 41 per cent liquids, during the initial 24 hour test period of stabilized production flow. This production rate included 12.7 mmcf/d of natural gas and an estimated 1,475 bbls/d of natural gas liquids (85 per cent condensate). The second well averaged an estimated production rate of more than 2,300 boe/d, 39 per cent liquids, during the initial 24 hour test period of stabilized production flow. This production rate included 8.6 mmcf/d of natural gas and an

estimated 900 bbls/d of natural gas liquids (82 per cent condensate). The flowing pressure of the well during the initial 24 hours of the 14 day test period was 2,300 psi through a 9/16-inch choke. During the final 24 hours of the 14-day production test period the d-E57-H well averaged a production rate of over 2,275 boe/d (38 per cent liquids) including 8.5 mmcf/d of natural gas and an estimated 865 bbls/d of natural gas liquids (82 per cent condensate). — JWN Energy

CEDA acquires Breakthrough Oilfield Services Maintenance and construction contractor CEDA has taken another step towards Montney opportunities with the acquisition of a second oilfield company in Dawson Creek.

The Calgary-based company announced it has purchased Breakthrough Oilfield Services, an industrial field outfit delivering services related to the production and processing of oil and natural gas liquids including pressure trucks, hot oilers, fluid haulers, tank trucks, hydro vacuum and combination vacuum units. Breakthrough owner Derek Loomis and the company’s workforce will be joining CEDA, which is a portfolio company of OMERS, the pension plan for municipal employees in the Province of Ontario. In November 2017, CEDA entered the Dawson Creek market with the acquisition of Joe Loomis Trucking, which operates hydro vacuum and combination vacuum units. The acquisition of Breakthrough ”strategically aligns with our vision for continued growth and expands our presence in this region,” CEDA CEO Kevin Fleury said in a statement. — JWN Energy

Cenovus Energy now third largest oil producer Cenovus Energy’s blockbuster acquisition of oilsands assets last year from ConocoPhillips has propelled the company into the highest ranks of Canadian oil production. The company is now number three in terms of production volume, after Canadian Natural Resources and Suncor Energy, according to data from the 2018 Oilweek Top 100. Cenovus Energy doubled its production in May 2017 after spending $17.7 billion to become 100 percent owner of the Foster Creek and Christina Lake oilsands projects. The company averaged 470,490 boe/d for 2017, compared to 271,525 boe/d the previous year. Canadian Natural Resources retained its top spot but increased production by about 160,000 bbls/d year-over-year to 908,308 boe/d. — JWN Energy

2017/18 SCHEDULE 2016 SCHEDULE PUBLICATION PUBLICATION DATEDATE

BOOkINg BOOKING DEADLINE DEADLINE

AD COPY DEADLINE DEADLINE

22 SEP152017 JAN 2016

20 13 SEP JAN2017 2016

21 2017 14 SEP JAN 2016

20 OCT122017 FEB 2016

18 10 OCT FEB2017 2016

19 2017 11 OCT FEB 2016

17 NOV 11 2017 MAR 2016

15 NOV 9 MAR2017 2016

16 2017 10 NOV MAR 2016

15 DEC152017 APR 2016

13 DEC 2017 13 APR 2016

14 2017 14 DEC APR 2016

19 JAN132018 MAY 2016

17 JAN 2018 11 MAY 2016

18 12 JAN MAY 2018 2016

16 FEB 172018 JUNE 2016

1415 FEB 2018 JUNE 2016

15 FEB 2018 16 JUNE 2016

16 MAR 15 2018 JULY 2016

14 13 MAR 2018 JULY 2016

15 14 MAR JULY 2018 2016

20 APR192018 AUG 2016

18 APR 2018 17 AUG 2016

19 18 APR AUG 2018 2016

SEP 2016 18 MAY162018

14 SEP 2016 16 MAY 2018

15MAY SEP 2016 17 2018

14 2018 OCT 2016 15 JUNE

12 OCT 2016 13 JUNE 2018

OCT 2016 1413JUNE 2018

18 2018 NOV 2016 20 JULY

16 NOV 2016 18 JULY 2018

17JULY NOV 2016 19 2018

DEC 2016 17 AUg162018

14 DEC 2016 15 AUg 2018

14AUg DEC 2016 16 2018

AD COPY

R0011177933

â&#x20AC;¢ PIPELINE NEWS NORTH

JULY 20, 2018

When You Are Out in the Field, Time IS Money.

QUALITY PARTS, EXPERT SERVICE!