PNN OCT 19 2018 by Pipeline News North

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What Northeast B.C. leaders are saying about LNG Canada Royal Dutch Shell and its joint venture projects approved the LNG Canada project for Kitimat on Oct. 2, 2018. Building the $40-billion project is estimated to generate $24 billion in investment in B.C., the province says. Another $16 billion is expected to be generated in construction activities that will take place off shore. Included as part of the project is TransCanada’s $6.2-billiong Coastal GasLink pipeline to ship gas from Groundbirch to Kitimat, and includes two Fort St. John contractors — Surerus Pipeline and Macro Industries. Political leaders in Northeast B.C. say the project brings long-term investor confidence and stability to the region. “The sale of liquefied gas will bring online a whole new stream of public revenue that will flow to the people of British Columbia over this next century. For my own constituents of the Peace River region, we will certainly benefit from the construction of the pipeline and the continued extraction of gas from the Montney gas play.” — MLA Dan Davies, Peace River North “This is a game changer for our region, the province of British Columbia, and our nation. It will create substantial growth and investment in our future. The long-term sustainability of our region is dependent on the economic success of natural gas exploration and production and this investment decision will allow the opportunity to further expand and diversify our services and industries for our future.” — Mayor Lori Ackerman, Fort St. John “The Chamber believes the development of LNG Canada will bring tremendous benefits to our community. We will continue to advocate for what is best for our members, and a robust energy sector is what is best right now.” — Nelson Stowe, president, Fort St. John & District Chamber of Commerce MORE ON PAGE 3

Wouter de Klein, manager of Groundbirch Operations for Shell, Rej Tetrault, GM Foothills and Groundbirch, and Sylvia Gruenwald, Plant Operator, at the Saturn gas plant. austin cozicar photo

Electrifying gas plants, cutting emissions AUSTIN COZICAR Canadian Association of Petroleum Producers Manager of Exploration and Production Communications Chris Montgomery says it’s hard to compare how Canada is doing in line with other countries in terms of carbon emissions due to the lack of information out there. “We report out how we’re doing on our performance, places like Saudi Arabia, Iran, Iraq, which are other large suppliers of natural gas to the world, Russia, they’re not reporting out,” he says. But with that, he lays out a goal of the industry. “The goal is to create an economic environment where producers continue to grow production here in British Columbia and else-

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where in Canada with a lower greenhouse gas emission so we can help the world reduce its emissions, and we can take economic advantage of that as well.” One method? Electrifying gas plants. “B.C. has a great opportunity because of our hydroelectric resources to be able to electrify the upstream,” he says. “If you have a gas plant, traditionally, you’re going to run that gas plant by burning natural gas — that creates greenhouse gas emissions. The reason you do that is because you’ve already got it — you don’t have to pay anybody else — and the price of burning that natural gas is very low.” In Northeast B.C., there are some notable examples, including the Saturn and Montney plants at Groundbirch. MORE ON PAGE 9

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OCTOBER 19, 2018

ENTRY DEADLINE – NOVEMBER 11, 2018 Limited to ﬁrst 32 rinks Fort St. John Curling Club For more information contact Bradley Moskalyk 250-329-9763 Stag banquet with entertainment Thursday at the Curling Rink • Music & Dance Friday night at the Curling Rink.

The purposes of the society “Fort St John Petroleum Association” are: Membership To create a nonproﬁt fraternal organization for educational, benevolent and social purposes. • To create a medium through which the society members may express themselves in Social activities, Educational pursuits and Athletic endeavours. • To contribute to the community in supporting worthwhile projects as decided upon from time to time by the society. • To provide entertainment that is enjoyable, instructive and beneﬁcial to its members and families. • To encourage a spirit of good fellowship among the society members. Membership Requirements Regular Member: a member who is directly engaged and derives 85% of his subsistence from any of the following petroleum industry enterprises:

• Manufacturing • Exploration

• Production • Marketing

• Drilling • Contracting

• Construction • Consulting

• Services • Supplies

FOR MORE INFORMATION ON HOW TO BECOME A MEMBER CONTACT US AT Fort St. John Petroleum Association, Box 6122, Fort St. John BC V1J 4H6 Visit our website: fsjpetroleumassociation.com Or ﬁnd us on Facebook: Fort St. John Petroleum Association

OCTOBER 19, 2018

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Northeast B.C. political leaders including Fort St. John Mayor Lori Ackerman (at left), and Dawson Creek Mayor Dale Bumstead and South Peace MLA Mike Bernier (at right), with LNG Canada project partners, B.C. Premier John Horgan, and Prime Minister Justin Trudeau at a signing ceremony, Oct. 2, 2018. Flickr/bcgovphotos

FROM THE FRONT PAGE “This is fantastic news for Taylor, Northeast B.C., the rest of the province, Canada and the world. Our world class resource will be developed responsibly by our world class industry and used world wide to reduce carbon emissions.”

in BC. We also do not forget Christy Clark and the BC Liberals for all the years spent laying the foundation that led to this day.” — Alan Yu, Fort St. John for LNG “(Today) we we celebrate the largest investment for a project in Canadian history!!!”

— Mayor Rob Fraser, Taylor

— MLA Mike Bernier, Peace River South

“The joint venture partners in LNG Canada have the conviction to go ahead with a huge project, and we are hopeful that this decision will set a precedent for other corporations looking to develop our local resources.”

“Holy man, historic!! No words. So proud of our City, region, province and country. An amazing day.”

— Mayor Bill Streeper, Northern Rockies

Royal Dutch Shell Plc is the lead partner in LNG Canada, with a 40 per cent stake. The project is rounded out by Petronas, which holds 25 per cent, Petro China and Mitsubishi, which each hold 15 per cent, and Korea Gas Corp., which holds five per cent. The investment decision is for two processing units, called trains, that will liquefy natural gas sourced from Northeast B.C. and then

“We have one more to give thanks to this Thanksgiving Day. The LNG Canada final investment decision marks the start of a new chapter in the economic history of Fort St. John and Northeast B.C. FSJ for LNG would like to thank John Horgan and the NDP for creating an environment favorable to an LNG Industry

— Mayor Dale Bumstead, Dawson Creek

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shipped overseas. Each project partner will supply its own gas for the project, with the first LNG expected to before the middle of the next decade, according to the release. Each partner will also offtake and market its share of LNG. The first phase will produce 12 million tonnes of LNG annually. That would require 1.8 billion cubic feet (bcf ) of natural gas per day. Canadian producers currently produce about 16 bcf per day. Both Shell and Petronas have a significant stake in the Montney — indeed, Shell just celebrated 10 years of its assets in Groundbirch, where the Coastal GasLink pipeline begins. Mitsubishi has a joint partnership with Encana Corp. in the Cutbank Ridge project. Korea Gas is the only partner that doesn’t have it own gas assets in Western Canada. The plant and pipeline will employ approximately 10,000 people at peak construction, according to a news release. There will be up to 900 people at the plant during the operations of its first phase. — Pipeline News North

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PNN MissiON stAtEMENt Pipeline News North provides 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.

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Helmut Pastrick, chief economist for Central 1 Credit Union, was in Fort St. John Oct. 16, 2018, for a State of the Economy Forum hosted by the North Peace Savings and Credit Union.

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

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MAtt PREPROst The economy in Northeast B.C. is on the upswing and there’s good news on the horizon. Helmut Pastrick, chief economist for Central 1 Credit Union, was in Fort St. John for a State of the Economy Forum hosted by the North Peace Savings and Credit Union. Pastrick reviewed a number of economic indicators that have been stabilizing through the region: unemployment rates are down and job vacancies are up; fewer people are receiving employment insurance and offered average hourly wages are up; housing sales and prices are on the rebound, and business incorporations are up. “I would say that the commodity cycle the economic cycle ... for your region and area generally seems to have run its course,” Pastrick said. “Given the outlook for certainly LNG and natural gas, it does appear the stage is set for another upswing,” Pastrick said. Construction of the LNG Canada project in Kitimat, and the Coastal GasLink pipeline that will feed the facility with gas from Northeast B.C. will help to firm up Canadian natural gas prices, Pastrick said. With demand increases for liquefied natural gas in Asian markets, “the long-term projections for LNG are very positive,” he said, adding that LNG Canada is “a very significant longterm project for more drilling and exploration” in the Northeast.

“The amount of demand we’re seeing now will double, triple in the next 20 to 30 years, so additional capacity will need to come on, and very likely will,” Pastrick said. The Northeast is in the middle of the pack when it comes to employment and GDP growth in the province, which continues its strong performance overall. Employment in the Northeast is around 20 per cent higher than it was in 2001, while areas like the Cariboo, Kootenays, and North Coast have seen declines or flatlines. The province is seeing better performance in service based economies, Pastrick said, and its export performance is lacking as province, as is Canada’s export performance as a whole. “We need to do a lot more to improve that,” Pastrick said. When it comes to lumber and panel prices, a slight downturn is puzzling, Pastrick said, figuring it to be a technical correction despite the softwood lumber dispute and flat housing starts in the U.S. “As long as U.S. housing starts hold up reasonably well, and I expect they will, this price correction is more temporary,” he said. “There’s a lot of pent up demand for housing in the U.S. economy still after the financial crisis.” Canadian canola, wheat, and feeder cattle prices have firmed up somewhat, he said. Looking ahead, Canada’s economy is running at full capacity, Pastrick said, and will be faced with higher interest rates. The loonie will hover about where it is now, at 77 cents to the

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• 11 different profiles & 26+ colours • Agricultural & Industrial U.S. dollar, he said. American trade policies and tariff spats under President Donald Trump have had a negative impact on global economic activity, adding costs for producers and consumers, and disrupting supply chains, Pastrick said. The U.S. is focused on biltateral trade deals rather than multilateral deals. “I guess when you’re the elephant, you’re the largest economy in the world and you’re negotiating with these small countries, there’s an advantage,” he said. “That’s the tactical approach.” The new U.S.-Mexico-Canada Trade Agreement could be worse, and is not much different than the old North America Free Trade Agreeement, Pastrick said. That deal was worth updating, he said. “Yes, there is some updates, and there should be some updates quite frankly,” he said. “It was signed in 1994, and so here we are 20 some odd years later and a lot of things have changed, on the technology front, digital, products and so forth. There needs to be regular review and updates of these trade agreements.” There are some risks of recession on the horizon, Pastrick said. That could be sprung by the ongoing trade war and escalating tariffs between the U.S. and China, a debt crisis in Argentina, Turkey, and China, a European banking crisis, or geopolitical crisis with North Korea or Iran. “It’s always difficult to accurately predict when the next recession will occur,” Pastrick said. “The track record for economists doing just that is very poor. We have no crystal ball as to when it will happen.” — Pipeline News North

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Two promising tight outlook oil plays identified in Northeast B.C. nelson bennett A three-year study of Northeast B.C. has identified two tight oil plays with the potential to produce tens of millions of barrels of oil. The study was conducted for Geoscience BC by Petral Robertson Consulting, which focused on areas outside of the Montney, since that region’s oil and gas reserves are already well understood. The study looked at 19 potential reservoirs, but eliminated 10 as having low prospects. Six are deemed to be “B” plays, which means they show good potential but lack the test horizontal drilling activity needed to confirm their potential. Two areas have been graded “A” plays – the Halfway formation north of Fort St. John and the Chinkeh formation northwest of Fort Nelson. The area had conventional oil production in the past, between the 1950s and 1970s. Some conventional wells are still producing. Old and declining conventional oil producing formations can often be revived through horizontal drilling and hydraulic fracking, which can unlock oil and gas that was heretofore unrecoverable. “There are historically some really nice older oil fields, particularly around Fort St. John area and a little bit north of there,” said Petral Robertson president Brad Hayes. “Really nice discoveries, most of them drilled up in the 50s and 60s and 70s and since then mostly depleted. There haven’t been many new light oil discoveries, and so that’s one reason everyone’s so excited about finding oil in the Montney.” The Montney formation, which straddles the B.C.-Alberta border, has attracted billions of dollars worth or investment, largely because of its wet gas – i.e. light oil, and other natural gas liquids, like condensate. Oil and gas producers in B.C. produced 7.7 million barrels of oil in 2017, according to the BC Oil and Gas Commission, which was down from 8.5 million in 2018. Whereas Western Canadian Select, the heavy oil produced in Alberta’s oil sands, is heavily discounted – currently selling at $32 per barrel – companies like ARC Resources are getting roughly $70 per barrel for the light crude it produces in Alberta and in the Montney. Hayes points to plays like the Cardium in Alberta, which was a prolific conventional oil producing region that declined but which has been reinvigorated by horizontal drilling. He thinks the Halfway formation in particular could likewise be revived with horizontal drilling and fracking. “The geological work suggests that it might be surrounded by a halo or a fringe of lower quality rock that we just could not produce economically in the good old days with the conventional wells,” he said. “But if you go in there with horizontal wells and the multi-frac technology that we use now,

Arc Resources pumpjacks. Arc is one of a handful of companies producing light oil in B.C.’s Montney formation.

you might be able to establish a bunch of economic producible oil from the Halfway formation that people just didn’t look at before. “We think that the potential could be in the order of tens of millions to hundreds of millions of barrels of oil recoverable.” But that is a rough estimate. Hayes said it will require oil exploration companies going in and drilling some wells to establish whether they can produce economically. “We know that the volume of oil that’s in the ground is big,” Hayes said. “Up until horizontal multi-frac wells, we just have not been able to get it out.” Currently, most of the bigger and mediumsized companies are focused on the Montney formation. Hayes expects it would be smaller, junior exploration companies that might be at-

tracted to the Halfway and Chinkeh formations. Hayes expects the Halfway formation will be the most attractive area for exploration, because there are legacy conventional wells there already. “What you’re drilling is a halo or a fringe around the old conventional production. So you’ve got a bunch of pipeline capacity that’s there. It’s probably underutilized now because the conventional wells are depleted so they’re not producing what they used to.” The Chinkeh formation is a different story. “There’s very little or no oil production up there, so (if ) they discover something up there, they’re going to have to establish a pretty significant resource because they will have to build some new oil pipeline there.” — Business in Vancouver

B.C. pulls in $2.1 million at October land sale Matt Preprost Industry paid more than $2 million for eight leases and five drilling licences at B.C.’s sale of petroleum and natural gas rights this week. The province sold a total of 8,200 hectares for an average price of $254.88 at the Oct. 10 sale. Of that, five drilling licences covering 5,503 hectares sold at an average price of $266.97. Contiguous Resources Ltd. paid the land sale high for a licence, $779,724 for a 1,029-hectare parcel containing two tracts in the Flatrock area. BASM Land & Resources Ltd. paid $440,820 for a licence on a 779-hectare parcel containing two tracts in the Flatrock area. Buffalo Hill Resources Ltd. paid $212,125 for a licence on a 3,167-hectare parcel containing three tracts near Halfway River First Nation. Cougar Creek Land Ltd. paid $36,450 for two licences, each covering 264 hectares in the

Wonowon area. The province sold eight leases covering 2,697 hectares at an average price of $230.21. Primavera Resources Corp. paid $15,600 for four 260-hectare leases in the Charlie Lake area south of the Alaska Highway. Basm Land and Resources Ltd. paid $15,540 for a 259-hectare lease in Montney. Cougar Creek Land paid $150,855 for a 280-hectare lease. Storm Resources paid $352,380 for one 839-hectare lease, and $86,490 for another 279-hectare lease. With rent and other fees, the province took in $2.1 million for October. The province has collected around $62.5 million at land sales so far in 2018. The next sale is Nov. 14. — Pipeline News North

OCTOBER 19, 2018

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STARS SUPPORT — ConocoPhillips Canada made a $180,000 donation to STARS on Oct. 11, 2018, pushing its contributions to the emergency air ambulance service to more than $3 million since 1989. ConocoPhillips Canada President Kirk Johnson presented a ceremonial cheque to STARS President and CEO Andrea Robertson in Fort St. John. A STARS helicopter was on site of the announcement. Prior to the announcement, both organizations hosted a safety training opportunity for local ConocoPhillips employees, as well as stakeholders and local first responders to support community safety. SARAH MURDOCH/MODERNPHOTOGRAPHY photos

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Rej Tetrault and Wouter de Klein review plant operations. austin cozicar photo

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OCTOBER 19, 2018

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FROM thE FRONt PAGE

Jon McElroy, instrumentation craftsman, hard at work at the Shell Saturn plant. AustiN COziCAR PhOtO

The Saturn and Montney plants at Groundbirch were converted to electric power, and Shell says emissions were reduced by about 150 kilotonnes per year. They report that direct emissions from the Saturn plant were reduced by 90%. But it’s not as easy as a snap of the fingers. Rej Tetrault, General Manager Foothills and Groundbirch for Shell, notes there are cons for electrifying, including that “for compressor work, they’re not some of the most common motors around ... it’s more expensive to maintain when they do go down.” For future gas plants, Tetrault says they will have to “look and analyze” in terms of making them electric powered. Montgomery notes that it is costly to do so, and the industry will need help. “If we’re going to move beyond, we’re going to need help as an industry, so that we can get electrification of further plants going forward,” he says. “There’s a cost gap that needs to be closed, and the other challenge is, if you’re not right on the grid today, it gets very expensive very quickly to get transmission out to you. Here, Shell is very fortunate, they’re close to the grid, other companies like Arc and Encana are very close to the grid. As soon as you get very far from the grid, if you get much further north of Fort St. John, it’s very difficult and costly to get electricity to your plant.” Montgomery also noted a balance needed in policy used to reduce emissions. “We need policy drivers to bring down greenhouse gas emissions, but we also need them to be economic as well,” he says. “If the drivers for that reduction means shutting down production, that production’s going to be met elsewhere in the world, and we’re going to end up with carbon leakage.” — Pipeline News North

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OCTOBER 19, 2018

Nauticol Energy development site.

Nauticol Energy plans $2B methanol facility in GP Nauticol Energy says it plans build a $2-billion methanol manufacturing facility in Grande Prarie starting in 2019. President and CEO Mark Tonner made the announcement at Centre 2000, the tourism and trade facility for the Grande Prairie region, according to a news release Oct. 9. “Nauticol is committed to building value-add industry in the Grande Prairie region. This leading-edge facility will create 75,000 people years of employment and adds value to Alberta’s abundant

natural gas supply,” Tonner said in a statement. “This is a made-in-Alberta/ made-for-Albertans project that will add tremendous economic, environmental and societal benefits both here and around the world.” The project would source natural gas from Alberta to produce up to three million metric tonnes of methanol a year, for use as automotive and marine fuel, or for use in electronics and construction materials, solvents and

petrochemicals. Most of the methanol will be shipped to Asian markets, which make up 70 per cent of global demand, according to the release. The project is being built next to the International Paper Canada pulp mill, and construction is expected to create 1,000 jobs, with 200 permanent jobs once complete. Nauticol says it has signed a memorandum of understanding with Western Cree Tribal Council to be equity participants in the

project. The project still needs to secure regulatory permits, though Nauticol plans to start construction in 2019. PCL Construction is leading the construction, and will build the facility modules in Alberta and transport them to the Grande Prairie site, located about 10 kilometres south of the city in the County of Grande Prairie. The facility is planned to be complete in 2021. — Pipeline News North

Pacific Northern Gas pitches new pipeline to Kitimat Pacific Northern Gas is planning an expansion of an existing natural gas pipeline that runs from Summit Lake, north of Prince George to Kitimat, if it can get producers in Northeast B.C. to sign up for capacity on the new line. Pacific Northern Gas, a subsidiary of AltaGas Ltd., already owns a natural gas pipeline that runs from Summit Lake to Kitimat, serving residential, business and industrial customers along the route. On October 10 the company issued a call for expressions of interest from natural gas producers in region to take additional capacity on a new 525-kilometre line it proposes to build. Brock John, a company spokesman, said there is an existing compressor system in Kitimat and Prince Rupert that was “mothballed” and which could be reactivated, if the company gets enough interest from producers. The company would consider twinning parts of the existing line in a looping project called the Pipeline Looping Project (PLP). “With the addition of the PLP, PNG will expand on its unique position in offering natural gas transportation service to multiple industrial projects along British Columbia’s west coast, serving

international markets and facilitating economic growth in the region,” the company said in an online posting. The company will be accepting expressions of interest up until October 26. The LNG Canada project in Kitimat will be sourcing its natural gas from the new Coastal GasLink pipeline, which TransCanada Corp. plans to build at a cost $6.2 billion. But there may be other natural gas-based industrial projects that could be developed in Kitimat and Prince Rupert that may need an additional source of natural gas, John said.

“There’s a number of different projects that are possible at this point, and that’s really what the expression of interest is trying to explore – who they are, what kind of volumes they are and the time frames of when they would require it.” AltaGas – Pacific Northern Gas’s parent company – is building a new propane export terminal in Prince Rupert. Royal Vopak N.V., a Dutch company, is also considering Ridley Island in Prince Rupert for a new bulk terminal for natural gas liquids, diesel, methanol and other liquids. — Business in Vancouver

OCTOBER 19, 2018

PIPELINE NEWS NORTH •

TRADES TRAINING — Dave Lye, vice-president of external affairs of at Encana, was on site at the ribbon cutting for Northern Lights College’s new $34.4-million trades training facility. Along with NLC, private donors — including Encana — contributed $3.4 million into the project. Austin cozicar photo

Keeping It Green: four ways we safeguard the environment One of the BC Oil and Gas Commission’s primary roles as regulator is to safeguard the natural environment. Throughout the oil and gas activity lifecycle, the Commission applies careful oversight and a commitment to continuous improvement to meet British Columbia’s energy and environmental goals. Right across British Columbia, people depend on oil and gas to fuel their lives – to get around town, to get out of town, to heat their homes, to cook and more. British Columbians are also proud of our healthy waterways, our clean air, and the vast lands that are home to the many plant and animal species that live here too. The Commission works to bring balance to the relationship between the landscape we love and the energy we rely on. Here are four ways the Commission safeguards B.C.’s environment: 1. Starting off on the right foot The Commission ensures provincial laws and regulations are followed from the outset of any new oil and gas activity. For each application received, the Commission undertakes a rigorous assessment and decision-making process incorporating land and habitat review to

ensure regulations are met and environmental values are protected. Area-based Analysis is used to assess cumulative impacts to the land base, and subject matter expert review is applied where appropriate. 2. Careful mid-lifecycle oversight Post permitting, the Commission’s operations group ensures oil and gas activities are constructed and operated in accordance with regulations and permit specific conditions. Industry compliance is held to the highest standard through regular inspections and investigations, and the Commission uses its authority to take compliance and enforcement action where appropriate. 3. End-of-lifecycle stewardship As oil and gas activities reach the end of their lifecycle, the Commission requires restoration of the operating area through site remediation, de-compacting and redistributing soils, restoring surface drainage, restoring waterway crossing sites, stabilizing slopes and revegetation. These activities help safeguard wildlife populations and their habitat, as well as native plants.

4. Continuous Improvement The Commission prides itself in being responsive and adaptive to meet changing social, economic, industrial and environmental conditions. Part of our commitment to continuous improvement includes our review and audit procedures that evaluate the effectiveness of regulations, policies and procedures and identify risks to address. This plan-do-check-act approach has resulted in significant improvements – such as Bill 15, which addresses the growing number of orphan sites – and reflects the priorities and expectations of British Columbians. Changes in the current economic climate have resulted in escalated risks with orphan wells and delays in decommissioning oil and gas sites across Western Canada. To address this, the Commission has escalated continuous improvement procedures to identify regulatory gaps and process improvements. In June 2016, the Commission launched an internal assessment of environmental practices. This assessment systematically identified and documented the Commission’s regulatory tools and

assessed our ability to protect over 20 environmental values, including air, water, land and wildlife. The assessment resulted in a list of residual environmental risks, which informed a five-year Environmental Improvement Plan to identify opportunities for improvement. This work is being supported by further development of our Environmental Management System. These four steps ensure oil and gas operations in B.C. are aligned with regulations and are undertaken in a safe, responsible and environmentally sensitive manner. For further assurance, the Commission looks forward to incorporating the results of an audit by the B.C. Auditor General examining management of the environmental and financial risks of non-operating oil and gas sites. With careful environmental management in all stages of the oil and gas activity lifecycle, combined with a commitment to continuous improvement, the Commission is helping safeguard B.C.’s environment for a changing energy future we can all be proud of. — BC Oil and Gas Commission

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OCTOBER 19, 2018

LNG a boon for work — and local hockey dillon giancola With the construction of the pipeline for the LNG Canada project on the horizon, Fort St. John and the surrounding Peace Region is set up for an up-turn in both economic activity and an influx of workers and residents coming to the North. More than just financial gains, this also has a potential impact for local sports leagues and organizations. The Fort St. John Senior Flyers are one such organization that relies in part on talented players who move to Fort St. John for work, including the oil and gas industry. With the transient nature of this town, the team’s roster is constantly in need of additions, and the local industry plays a big part in bringing new players to the area, and this year has been no exception. Flyers General Manager Lee Hartman is actively engaged in this, and sends letters to schools such as the University of Alberta and University of B.C. and their hockey teams, letting soon-to-be grads know of the opportunities in Fort St. John when it comes to work and hockey. “When we talk to young guys finishing their junior and college hockey careers, we tell them Fort St. John is a vibrant community. Lots of these guys take business as their schooling, and we want them to know that Fort St. John is a good spot for them,” said Hartman. Hartman and the Flyers executive are hopeful about the potential for upcoming pipeline projects to attract players who would like

Fort St. John Senior Flyers President Paul van Nostrand and Joey Massingham the team’s 2017-18 awards banquet in July 2018, where van Nostrand handed Massingham the Mr. Hustle Award.

to continue playing hockey competitively. Hartman says he does what he can to find connections and possible job opportunities for prospective players thinking of making the move. Joey Massingham moved to Fort St. John in 2014 shortly after finishing his playing career at the University of Wisconsin-Superior. His linemate for three years, Kyle Lahey, was from Fort St. John, and suggested Massingham move here

to continue playing hockey and start working in the oil and gas industry while he was at it. “At the time, it was a pretty good option and still is,” said Massingham, who’s entering his fifth season with the Flyers. “Coming out of playing college hockey, thinking the dream was over, and then being able to come here, play some good, fun hockey and start a career has been great.” Massingham was the recipient of the Flyers’ Mr. Hustle award for the

2017-18 season. He does electrical work for the Surepoint Group, an oilfield services company. Massingham said both Fort St. John and the Flyers give players transitioning out of the college or junior hockey scenes the perfect chance to start a career. “It provides a good outlet for players to start working and continue to play hockey, and it’s a great place to gain experience,” said Massingham. Another player who followed this course was former Flyers player Aaron Schepers, who moved to Fort St. John in 2007 and joined the Flyers after playing with the Alberni Valley Bulldogs Junior A team of the BCHL. Schepers was looking for work and got a job with Ace Instruments — the locally owned instrumentation and electrical company — and became a journeyman instrumentation technician. Schepers played for the Flyers for close to 10 years, and was a part of the 2010 Allan Cup-winning team and the squad who won the 2015 Coy Cup, before moving to Kelowna with his family. “(Schepers) was a solid player, and typical of a number of guys who have come up for work and stayed for a long time,” said Flyers President Paul van Nostrand. “They enjoy the hockey here and the town and its facilities.” For those moving to the Peace Region in the coming months, they shouldn’t hesitate to give Hartman and the Flyers a call. It just might be a decision that could impact your life for a long time. — Pipeline News North

Community, industry ready Bear Mountain Ski Hill for winter AUSTIN COZICAR While Bear Mountain Ski Hill is the place to be in the winter, it’s the work put in in summer months it’s up and running smooth during the season. There’s always the maintenance work: this year a millwright and an apprentice from the Nitehawk hill in Grande Prairie spent over a week doing lift maintenance. (A task that used to use a crew from Fernie — travel was much more expensive). But there’s always a few projects

too. The big one this year? Replacing the snow pipeline. “Our old pipeline was put in around 1988, so the pipe was deteriorating, and we were finding that every year for the last five years, soon as we fire up our snowmaking system, we’d get breaks in the pipe. We needed to replace the pipe,” says Paul Gevatkoff, who runs much of the hill’s operations. The job was costed at $340,000. “We were fortunate that we got pipe donated from Murphy Oil, we got a grant from the Regional District for $75,000, and we got

a grant from Northern Development Initiative Trust for $50,000, and then the South Peace Oilmen’s Club topped it up with $22,000,” continues Gevatkoff. “It wasn’t enough to do the whole job, but with Dahlen Contracting, and with a little bit of help from Triple J Pipelines, Carl [Dahlen] did the job and absorbed the additional expenses, and we were able to do it with the money that we had, so we’re fortunate. “They went through and they replaced all the pipe and serviced all the hydrants and repaired some of

the hydrants.” As well, a number of volunteers from the Dawson Creek Athletic Association chipped in to repair a wall in the crawl space — valued at over $30,000. (“They did the whole job and it didn’t cost the ski hill anything.”) With the hill gearing up for winter, Gevatkoff is thankful for the community and business support. “That really helped,” he says. “There’s just not enough money in this ski hill operation to do these kinds of things.” — Pipeline News North

OCTOBER 19, 2018

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Work camp update for Coastal GasLink AUSTIN COZICAR With a positive final investment decision on LNG Canada, the Peace Region will be bustling with activity as construction on the Coastal GasLink pipeline is slated to begin next year. The pipeline, which will go from the Groundbirch area to Kitimat, is split into eight sections — of which, sections one and two fall in the Peace Region. (Surerus Murphy is the contractor for these two sections). TransCanada has been keeping local communities in the loop about their current construction plans. “Since LNG Canada announced a delay in mid2016 which is the last time we were looking for a final investment decision, we’ve continued to optimize our execution plan, to optimize our ancillary sites to make this the most effective construction plan we can make,” says Sunny Deol, construction engineer. In the current set, they say there will be two main camps and a drill camp in the Peace River Regional District. The Chetwynd camp about 6.5 km south of Chetwynd from the junction of Highway 97 and 29. It will have a peak of 650 workers, which would occur in mid-2020. The Sukunka River camp, 40 km southwest of Chetwynd, would have a peak of 680 workers in the Fall of 2020. The drill camp will be located 65 km south of Highway 29, and will be used for initial pioneering activities and drilling activities in mountainous regions. This camp will be “smaller, more contained.” — Pipeline News North

SUMMER IN THE PARK — Throughout summer, the City of Dawson Creek and Shell Canada tag teamed to host Summer in the Park events each week. For every Wednesday in July to September, a different park in Dawson Creek would play host to fun-filled activities for all ages ranging from disc golf to sack races to skateboarding. And while the events were light and fun, the community also got a chance to learn about initiatives like curbside recycling and meet with organizations like the Dawson Creek Society for Community. Austin cozicar photo

inactive assets in a timely and responsible manner. The OGC has been consulting with industry regarding orphan site funding and asset retirement and those discussions will continue. Due to an increase in orphan sites in recent years, spending on orphan treatment has tripled to almost $15 million in 2018/19. — Daily Oil Bulletin

Woodfibre LNG signs OGC hikes levies for 13-year export deal orphan well cleanup Squamish’s Woodfibre LNG has reached a preThe B.C. Oil and Gas Commission will be implementing an industry gas production levy increase from $.071 per 1,000 cubic metre of marketable gas produced, to $.085 to raise funds for orphan site restoration. The oil levy will also increase from $1.30 to $1.58 per cubic metre petroleum produced. The new rates take effect beginning with October 2018 production. Beginning April 1, 2019, a new liability levy will replace the existing orphan tax ($.03 per 1,000 per cubic metre marketable gas and $.06 per cubic metre petroleum). The production levy increase will also continue to support the orphan site restoration fund over a three-year period, while the liability levy is phased in. By 2021/22, the liability levy will provide the entire estimated $15 million per year required to sustain the orphan fund. Oil and gas well sites, test holes, production facilities and pipelines may be deemed as orphan sites when the operator is insolvent or cannot be located. Recent amendments to the Oil and Gas Activities Act enable the OGC to develop regulations, policies and tools to ensure industry is retiring

liminary agreement with the first and largest LNG importer in China. As with their other offtake agreements, this deal will be finalized closer to the start of plant operations, according to Woodfibre LNG. Pacific Oil & Gas Limited announced over the weekend that on Sept. 29, its subsidiary Woodfibre LNG Export had signed a Heads of Agreement with CNOOC Gas and Power Trading & Marketing Limited, a wholly-owned subsidiary of CNOOC Gas and Power Group Ltd., for the potential purchase of 0.75 mmtpa of liquefied natural gas for 13 years starting in 2023. A Heads of Agreement is a non-binding document, which sets out the key terms of a proposed agreement between parties. CNOOC Gas & Power Group Ltd. has launched nine LNG receiving terminals in China, and imported more than 20 million tonnes of LNG in 2017, according to Woodfibre LNG. The Squamish plant will have a storage capacity of 250,000 m3 and is licensed to export approximately 2.1 million tonnes of LNG per year for 40 years. “Natural gas is recognized around the world for its role in a low carbon energy future and we are proud to have an opportunity, even in a small

way, to be part of this energy transition,” said Ratnesh Bedi, President of Pacific Oil & Gas Limited, in a news release. — Squamish Chief

Kwispaa LNG files project description Kwispaa LNG has entered the next phase of project development with the submission of the project description to the regulatory authorities. Steelhead LNG Limited is jointly developing the proposed Kwispaa LNG project at Sarita Bay on Vancouver Island with Huu-ay-aht First Nations. A project description was filed with the British Columbia Environmental Assessment Office and Canadian Environmental Assessment Agency. The project description provides a comprehensive overview of Kwispaa LNG and represents the culmination of several years of engagement and planning, the results of which have been integrated into ongoing environmental studies and engineering work. Unique among Canadian LNG projects, Kwispaa LNG is being developed through a comanagement relationship between Steelhead LNG and Huu-ay-aht First Nations. As part of this collaborative approach, the Kwispaa LNG team has been undertaking joint environmental studies and engagement with First Nations and local communities. The filing of the project description will allow them to work with Kwispaa LNG to establish the scope of the environmental assessment of the project. Extensive First Nations and community engagement to date by Kwispaa LNG has already identified areas of particular interest, such as marine shipping, which will be a focus of environmental studies. — JWN Energy

OCTOBER 19, 2018

PIPELINE NEWS NORTH

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