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Should the oil and gas industry threaten to strike? bill whitelaw Maybe the oil and gas sector should take a page from the CUPW playbook and go on rotating strike. Look how fast Ottawa jumped to the pump on the postal file. Screw with timely arrival of Canadian gifts at Christmas? Nosiree. But their gas tanks? A whole other matter entirely. That’s why the sector should consider rotating “NNHDs.” This is the maybe-not-so-imaginary concept of National NoHydrocarbon Days. Let’s set the first round for July 1, 2019. And target Toronto, Montreal, and Vancouver to start. It will be the day the oil and gas sector disconnects itself from Canadians in key areas around the country. Deliberately. Starting with the gas tank. To the degree the Canadian Christmas present is symbolic as a way of life, so too should be the fuel tank. So, take some action. Plan a process by which the stations will be empty in those cities on (or ideally before) July 1. There will be pain for the industry and its retailers to be sure, but what’s another bruise when you’re already black and blue all over?

But a point has to be emphatically made. We need a day when, literally, parts of country grind to a halt. Be bold: even take out public transit where possible. And hopefully millions of Canadians smack themselves right upside the head with a big old Homer Simpson D’OH. Here’s why: we need something designed deliberately to hit both antienergy and complacent Canadians where it hurts:

their energy-entitled lives. These rotating “empty tank” days should be designed to focus their attention on a critical drama playing out, literally under their noses, but to which they’re paying scant attention: the rapid erosion of a sector the importance of which underpins so much of what makes Canada’s economic engine tick. While the current debate swirls around the notion of government-sanctioned production cuts to reset

the pricing differential dynamics, it’s a good bet most Canadians are paying little notice. It may help the industry short-term, but it’s as everyone knows, just that: a band-aid on a wound that’s rapidly going from festering to just about borderline gangrenous. Serious times call for serious measures. It’s fascinating to see this play out as if it were a drama only on a political stage. It is that. But anyone in the energy world who

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believes that it’s merely (and only) politicians to blame is living in an alternative universe. Politicians derive their power from one place only: the ballot box. They know this. It drives every calculation they make. Look how Alberta’s NDPers are cozily aligning with the energy sector as the 2019 election looms. They know next year Albertans will be at the polling stations with itchy carbon-stained fingers. Justin Trudeau has a more ticklish dilemma. He has mightily ticked off Albertans aplenty. But he has other constituencies to consider; doing something beyond anodyne bromides to placate “Calgary” could spell problems elsewhere. But in the petroleum industry we just don’t seem to have cottoned on to the fact many Canadians need a poke in the eye with a sharp (metaphorical, to be clear) stick. The real issue is Canadians who deliberately don’t care — and Canadians who don’t know enough to care that the energy sector is on its knees; forehead aiming for the dirt. And it’s more than a flesh wound. MORE ON PAGE 5

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DECEMBER 14, 2018

From all of us at the Fort St John Petroleum Association we wish you a very

Merry Christmas and a Happy New Year WHAT IS FORT ST. JOHN PETROLEUM SOCIETY? The purposes of the society “Fort St John Petroleum Association” is 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 VISIT http://fsjpetroleumassociation.com FOR MORE DETAILS


DECEMBER 14, 2018

PIPELINE NEWS NORTH •

Petronas plans gradual ramp up, electrification

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matt preprost Petronas Canada plans to electrify its operations in Northeast B.C. as it reaccelerates its drilling program and brings spending to $1 billion a year by 2022. The company, formerly Progress Energy, has been in a holding pattern since 2016 after spending three years appraising what proved to be more than 200 trillion cubic feet of natural gas reserves in its North Montney holdings, and prompted it to reevaluate its liquefied natural gas project planned for Prince Rupert. Though it cancelled Pacific NorthWest LNG, the company has spent the last two years retooling its strategy to develop its massive reserves for the longterm, executives told a Fort St. John Chamber of Commerce audience Tuesday night. “We also looked at what other people were doing across the industry and in the United States as well, and we want to thank you for your patience during this time. We know it’s never easy when a company starts to stop spending Nicole Deyell, vice-president of development and unconventional centre of excellence for Petronas Canada, speaks in Fort St. John, money,” said Nicole Deyell, vice- Nov. 27, 2018. | Photo by Matt Preprost president of development. The company had spent $5 with today’s technology, Deyell said. reduced,” Deyell said. The company couldn’t put an billion proving wells in the Montney Of that, 7 tcf will be sent west to the Petronas Canada President and estimate on how much it planned to between 2013 and 2016, and was LNG Canada project in Kitimat, in CEO Mark Fitzgerald was scheduled spend on community sponsorships the most active driller in B.C., which Petronas bought a 25% share to speak at the event in Fort St. and investments, but the board will accounting for roughly one-third of in May. John, but couldn’t make it due to the meet in February on that matter. all wells. It recently brought in a rig The company has also committed weather. The company wants to be held and resumed drilling in October. 700 million cubic feet per day As Petronas rolls out its strategy accountable for its performance The company plans to build east through the North Montney over the next three years, the and practices so it can be a trusted slowly from there in 2019, with two Mainline, currently under company is looking at its community employer and community partner rigs to drill 30 wells and boosting construction, and is building two gas and workplace culture, said Liz in the region, Hannah said. spending to just under $500 million. plants in the region to support that, Hannah, vice-president of external “We can’t talk about doing By 2022, it plans to have up to six rigs Deyell said. The company continues affairs and communications. anything else if we cannot perform in the region drilling up to 80 wells, to look for new markets, but will not “We’re very focused on making with excellence,” Hannah said. with spending reaching $1 billion. be reviving Pacific NorthWest LNG. sure it’s not just what we do, but “If we say we’re going to do “You’re not going to see the same Petronas has recently committed it’s also how we do it. We are very something, we need to own that. We level of activity we had in 2013 to to the federal government to lead the focused on making sure that we are have very focused execution. If we 2015,” Deyell said. development of an electrification going to be the kind of neighbour do something wrong, we want you “We’re building a very measured plan in Northeast B.C., Deyell said. that you want in your backyard for to tell us. If you feel that we’ve done program that we’re going to build The company will be working a very long time to come,” Hannah something right, if you feel that we up in stages. So what you’ll see from with all levels of government, First said. should be doing something better, us is slow, steady increase in activity Nations, and the public in the new “What we are committed to doing please let us know. as we drill wells and put them into year on that plan, she said. is making sure that we build on the “We want to make sure we are production.” “We believe this could be relationships we already have here, earning that trust, and we want to Around 63 trillion cubic feet of approximately 250,000 tonnes that we grow those and we earn your make sure that our success is shared Petronas’ reserves are recoverable of CO2 equivalent per year that’s trust.” success.”

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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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Pembina Pipeline Corporation staff present Jessica Kalman, executive director of the Fort St. John literacy Society, with a cheque for $22,000. | Supplied Photo

Pembina gives $22K boost to literacy The Fort St. John Literacy Society is celebrating a $22,000 donation from Pembina Pipeline Corporation to support local literacy programming for children and adults. “We are very grateful for the recent donation from Pembina as it has allowed us to expand our programs and offer more literacy services to the community,” says Jessica Kalman, executive director for the Literacy Society, said in a news release. A leading transportation and midstream company, Pembina is a strong community supporter. Its community investment program focuses on initiatives that improve access to education,

protect or preserve the environment, promote safety, create community space and encourage recreations and a healthy lifestyle. Community investment is a part of the culture at Pembina, said Jeffrey Spenst, supervisor of Pembina’s Fort St. John office. “As an employee, and as a member of the local community, it feels good knowing that Pembina’s commitment to community runs deep,” Spenst said. “Education is a major focus of our CI program, so supporting the Fort St. John Literacy Society is a great fit because literacy skills are essential and foundational.”

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wouter de Klein, Shell’s Groundbirch Operations Manager, with staff and students from Christian life School, which received 35 recycled laptops as part of Giving tuesday. | Supplied Photo

Shell makes big technology donation Eight groups in Fort St. John and the North Peace got an early Christmas present as Shell Canada donated 120 recycled laptops as part of Giving Tuesday on Nov. 27. The equipment was previously used by Shell staff, and the company partnered with the Electronic Recycling Association to make the donation as part of Giving Tuesday, a global day of giving that encourages organizations to take charitable actions and volunteerism ahead of the holiday season. “This is Shell Groundbirch’s first donation of this kind in Northeast B.C. and we’re thrilled to partner with the ERA to re-distribute computers to communities and organizations near Shell’s Groundbirch operations,” said Wouter de Klein, Groundbirch Operations Manager.

“This is part of our goal to Build a Lasting Groundbirch, which means building a positive legacy for decades to come, where we support a vibrant community and invest in future generations. Nowadays almost all dreams are realized using a computer, so I’m excited to be part of realizing more dreams in Northeast B.C.” Groups receiving the donations were: • North East Native Advancing Society • Fort St. John Public Library Association • Halfway River First Nation • Northeast Aboriginal Business Centre • Christian Life School • Doig River First Nation • Blueberry River First Nation • West Moberly First Nation


DECEMBER 14, 2018

matt preprost The B.C. government earned just over $1 million at its monthly auction of petroleum and natural gas rights last month. The province sold two drilling licences and four leases covering 2,912 hectares at the Nov. 14 sale. Cougar Creek Land picked up the two drilling licences, one for $542,321 for a 1,028-hectare parcel southwest of Taylor straddling the Pine River, and the second for $18,865 near Wonowon. The company also picked up a 518-hectare lease for $186,303 in South Taylor. Storm Resources picked up two leases, one for $112,940, and the

second for $85,753. Synergy Land Services paid $90,722 for one lease. With rent and other fees, the province took in $1.05 million for the month. The province has collected around $63.5 million so far in 2018. Sales have been tempered since June, when a single drilling licence sold for $42 million. The final sale of the year is scheduled for Dec. 12. Results were not available by press time. The province generated $173.25 million in sales in 2017 — a rebound year for B.C. after a new record low of $15.19 million in 2016.

The day the tanks went dry

continued from front page Both cohorts described above are energy entitled; the former (and more hypocritical) using petroleum-derived energy while pushing the knife in deeper; the latter just plainly suffering a malignant combination of ignorance and apathy — malignant as opposed to benign because the consequences are that grave. Fortunately, the latter vastly outnumbers the former. But in a curious contradiction, the smaller (and substantially more vocal) seemed to have convinced many politicians that the choice between energy and the environment is starkly binary. It’s anything but. Yet it is from this perceived reality that politicians derive their real direction. Most left-leaning ideologues believe they are simply carrying out the people’s will. For the small sector of vocal opponents they are; for the greater group they’re misreading silence as sentiment. It’s that sentiment that needs to be tectonically shifted. Here’s the real irony in all this. Canadians own the actual hydrocarbons in question. Actually own them, as in wealth in their pockets. Politicians are great at proclaiming and declaiming about “our” resources. In that sense, they are correct. But in industry we need to be better at forcefully telling Canadians these are actually “your” resources; that these molecules work for your quality of life in myriad ways. The days of bar graphs and pie charts and incomprehensible numbers have not proven instructive of getting that point across. As resource owners, Canadians need to step up — or else we who toil in the sector can’t make those hydrocarbons work economically for you. Sadly, to get to that place and shift sentiment at the ballot box, at the risk of being brutally colloquial, they need a swift kick in the energy crotch. After all, Canadians don’t like posties screwing with their Christmas cards; why should politicians screwing with their fuel tanks be any different? Mark it on July 1, 2019: the day the tanks went dry. It’s a good bet that could make a difference on voting day. Bill Whitelaw is president and CEO of JWN, as well as executive vicepresident, Business Information Group, at Glacier Inc. and managing director of Evaluate Energy, an affiliated energy analytics and research company based in London, UK.

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• PIPELINE NEWS NORTH DECEMBER 14, 2018

Canadian Natural operations suspended; earthquakes investigated Matt Preprost Hydraulic fracturing activity has been suspended for at least 30 days in the Septimus area southeast of Fort St. John as the BC Oil and Gas Commission continues to investigate a series of earthquakes that rattled the region last week. In an update issued Friday, the Commission said it narrowed down the location of the three earthquakes, which measured between magnitude 3.3 to 4.5 on November 29, to an area near Canadian Natural Resources hydraulic fracturing operations. The Calgary-based company was the only operator working in the area at the time and it immediately suspended operations, said Commission spokeswoman Lannea Parfitt, adding the company has shut down its two wells there. “We don’t want to speculate as we are continuing to investigate,” she said when asked what the commission will do if fracking is found to have caused the earthquakes. CNRL operations remain suspended in the area until the company receives written consent to continue from the Commission. The Commission also met with Seismic events near Fort St. John and Taylor, November 29, 2018. | BCOGC Photo other companies operating near the earthquakes on Dec. 4, and there will be no hydraulic fractur- whether the seismic activity de- seconds in Fort St. John, Charlie ing in the area for the next 30 days tected and felt in the region was Lake, Taylor, Chetwynd, Dawson as the investigation continues. a natural occurrence or related to Creek, Hudson’s Hope, and rural Companies will need to confirm any of our activities.” communities in between. Some with the Comission when their The company is working with felt tremors as far away as Pouce operations can continue. the OGC to provide all available Coupe and Baytree, Alberta. CNRL officials say the earth- data and information as part of the On 105 Avenue in Fort St. John, quakes were detected by its mon- Commission’s investigation, Woo Anne-Marie Freeman said the itoring equipment in the Septimus said. tremors shook the top floor of her area. The first earthquake was re- condo building. “I thought the TV “With the safety of our workers ported at around 6:25 p.m. on was going to fall over! Such a huge and the public as our first prior- November 29 at a magnitude 4.5. A shake!” Freeman said. ity, we immediately responded 3.3-magnitude aftershock was reSaid Wendy Burkholder, “Out at by shutting down our activities corded at 7:06 p.m., and a second the airport here, and I thought my in the area, as per OGC protocols aftershock near magnitude 4 was walls were cracking.” and Canadian Natural’s operating recorded at 7:15. “Dawson felt it bad,” Samantha practices,” spokesperson Julie Woo Residents across Northeast B.C. Zack said. “My work office white said in an email. reported feeling loud, strong trem- board came down even.” “It is too early to determine ors that shook houses for several Said Carol Alexander, “It shook

hard and rumbled and rattled.” The Commission has stepped up its research and monitoring of induced earthquakes linked to industry in Northeast B.C., adding 20 new seismic monitoring stations in recent years. Most “induced seismicity” events happen when fluid is injected into underground faults at high pressures to release gas as part of drilling operations, or from wastewater disposal. According to the Commission, a magnitude 4.5 earthquake is often felt on the surface but rarely causes damage, and less than 0.2% of hydraulic fracturing operations cause felt events. There were no reports of damage or injuries from last week’s events, though hundreds of felt reports were submitted to Earthquakes Canada. Permit conditions require seismic monitoring during hydraulic fracturing activities. Earlier this year, the Commission issued an order requiring drillers to shut down operations when an induced earthquake reaches magnitude 3.0 or greater near Fort St. John or Dawson Creek. Geoff Morrison, B.C. manager of the Canadian Association of Petroleum Producers, said safe and sustainable natural gas development is a priority for operators in Northeast B.C. “Natural gas activity is strictly regulated and monitored, and the safety of communities located near operations is of paramount importance. We have a track record of robust regulations, employing best industry operating practices, and working to continuously improve our environmental performance,” Morrison said in a statement. The industry will continue to work closely with the Commission as it conducts its investigation, he added. — with files from the Canadian Press

No improvement in sight for Canadian drilling numbers in 2019 The Canadian Association of Oilwell Drilling Contractors expects pricing differentials and pipeline delays will continue to depress activity into 2019. CAODC released its 2019 drilling forecast on Thursday, Nov. 22, projecting that 6,962 wells will be drilled in 2019, up by just 51 from 2018. The Canadian rig fleet is also expected to decrease by 58, to 522 rigs,

as newer, high-spec rigs and associated senior rig technicians are deployed to the United States where costs are lower and day rates are higher. “Tone at the top matters, and investors are uncertain as to whether Canada wants to be in the oil and gas business in any meaningful way,” CAODC president Mark Scholz said in a statement.

The politicization of oil and gas infrastructure in Canada, along with increased taxation and regulatory requirements, continues to result in significant delays and additional costs for Canadian producers, and sustained price differentials for Canadian crude blends, CAODC said. “The lack of activity is not hard to understand,” Sholz said. “The Canadian oil and gas industry is simply

too dysfunctional to anticipate any kind of quick recovery.” CAODC sees no improvement in sight for activity levels through Q3/2019, although it said the completion of Enbridge’s Line 3 replacement could produce a modest boost in drilling activity in Q4. — JWN Energy


DECEMBER 14, 2018

PIPELINE NEWS NORTH •

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Energy minister interrupts, sidesteps question on Canadian oil hayley woodin When asked at Energy Forum 2018 how Canada is to get its oil to international markets, B.C. Minister of Energy, Mines and Petroleum Resources Michelle Mungall pivoted to clean technology. The minister told attendees at the Greater Vancouver Board of Trade (GVBOT) event that the B.C. government is successfully making the province competitive, while managing environmental needs. But in a one-on-one discussion with Radha Curpen, Vancouver managing partner at Bennett Jones and co-head of the firm’s environmental law and aboriginal law practices, Mungall interrupted and ignored a question about building pipeline infrastructure by asking a question of her own. “Can I ask you a question? How do we get our clean tech to the world? How do we get, how do we attract clean industry to British Columbia? Bitcoin is looking at British Columbia. It would require an incredible amount of new energy sources to deliver on the energy needs of Bitcoin,” says Mungall at the end of a discussion that had progressively gotten more tense. “If you want to focus solely on pipelines, I think you’re missing the bigger opportunities that are waiting in the wings to really grow Brit-

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ish Columbia’s economy.” “I think we want to see all of it,” replied Curpen. “Well, that’s good to hear,” responded Mungall. That exchange ended the

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Seismic events near Fort St. John and Taylor, November 29, 2018. | BCOGC Photo

conversation. Earlier in the day, Mungall told GVBOT members she was “ecstatic” to learn of LNG Canada’s positive final investment decision on its $40-billion project, and disheartened when Malaysian energy giant Petronas had turned away from its B.C. project the year before. “That was very disheartening to see that, and so we had to shift, we had to turn around and identify what it was that we needed to do to make B.C. competitive for that international market.” She told attendees that the government’s framework for LNG does just that. She also said it matters what flows through a given pipeline. “Bitumen is just not the same,” said Mungall, who acknowledged that her perspective on the Trans Mountain pipeline expansion project was different from those held in the room. As an organization, the GVBOT has actively shown support for the development of the project. However, she said government sees very positive opportunities for the province in natural gas extraction, particularly in B.C.’s Montney region. “Our plan is to actually move that forward and grow that part of our economy,” she said.


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• PIPELINE NEWS NORTH DECEMBER 14, 2018

New B.C. climate plan appears to absorb impact of near-term LNG nelson bennett British Columbia will need to increase its use of its already clean electricity in many sectors of the economy, invest in more energy efficient buildings and increase the renewable fuel content of gasoline, diesel and natural gas over the next 12 years to meet its greenhouse gas emissions targets. Premier John Horgan announced his government’s new climate change and energy plan, CleanBC, Wednesday, December 5. The most notable new policies unveiled Wednesday include an increase to the renewable fuel conB.C. Green Party Leader Andrew Weaver and Premier John Horgan celebrate the new tent requirements of B.C.’s low car- CleanBC plan on Dec.5, 2018. | BC Government Photo bon fuel standard, and measures that will require that all natural gas used for home heating and industry gases (GHGs) below 2007 levels by deemed inadequate. to eventually have a 15% renewable 2030. B.C. produced about 62 milIn a letter to Premier John Horfuel content. lion tonnes of CO2 equivalent (MT/ gan and B.C. Environment Minister Also, building code changes will CO2e) in 2015. A 40% reduction George Heyman, 40 scientists and be required to ensure that all new below 2007 levels (67 MT) would re- academics last week called on the homes are “net-zero” in terms of quire taking 27 MT out of the econ- B.C. government to revise its emisemissions by 2032. omy by 2030. sions reductions targets – to 50% of But the first phase of the LNG 2007 levels by 2030, from 40%. Electrifying the oil and gas sector Canada project would add 3.5 MT/ Given that B.C.’s emissions have CO2e, according to the B.C. govern- fallen only about 3% since 2007 – While there was no mention of ment and the Canadian Environ- the year before a new carbon tax the LNG sector that poses a chal- mental Assessment Agency. came into effect – critics are queslenge for the government in meetB.C.’s oil and gas sector accounts tioning whether B.C. can hit a 40% ing its climate change objectives for 22% of B.C.’s GHGs. Transpor- target in just 12 years, let alone 50%. at Wednesday’s announcement, tation accounts for 37%, buildings “You certainly don’t build LNG it appears that the plan absorbs 12%. (liquefied natural gas) plants and the increased emissions from the The government’s plan calls for you certainly don’t build pipelines,” LNG Canada and Woodfibre LNG more electrification of the gas fields said Lynne Quarmby, a molecular projects. of northeastern B.C. That will re- biologist at Simon Fraser UniverThe plan calls for more electri- quire an investment of hundreds of sity, one of the 40 scientists and fication of the economy, including millions of dollars in new transmis- academics who signed the letter. the oil and gas sector. That increased sion lines. “It would absolutely require electrification will require 8% Horgan said he thinks the federal major changes. Nobody’s denying more electricity by 2030. Michelle government will help with that. that.” Mungall, minister of Energy, Mines “We’re going to be certainly lookIn addition to calling for a revised and Petroleum Resources, said B.C. ing to Ottawa for assistance in a emissions reduction target, the 40 will generate enough power to meet range of issues, not the least of signatories want all industrial prothat demand into the 2030s. which is electrification,” he said. jects to be subject to “a climate test” The clean growth plan includes “We’ve already been in discussions in environmental assessments. “ringfencing” of carbon taxes for with the federal government on David Austin, a lawyer specialindustry. Benchmarks will be set that.” izing in energy for Stirling LLP, said for industries like mines, LNG, pulp focusing on the LNG industry as the mills and cement plants, and those Is LNG the wrong target biggest climate change challenge that meet or beat emissions inten- in emissions fight? misses an important point. sity benchmarks will get some of Even without an LNG industry, the carbon taxes rebated. B.C.’s new clean growth plan was the oil and gas sector in B.C. alB.C.’s climate action plan aims not even officially announced yet ready accounts for 22% of B.C.’s for a 40% reduction of greenhouse last week, and it was already being total emissions, so electrification of

the gas fields needs to be a big part of the new clean growth plan, Austin said – with or without an LNG industry. He pointed to ConocoPhillips to illustrate his point. The company has recently increased its activity in the Montney formation in Northeast B.C. and now holds 143,500 net acres of land there. “It’s got nothing to do with LNG,” Austin said. “Everybody keeps forgetting that there’s emissions coming from the gas fields for gas production that’s got absolutely nothing to do with LNG. “Everybody keeps thinking that it’s the LNG industry that’s driving the increase in GHG emissions in the gas fields. No, it’s not. It’s the fact that the Montney liquids-rich formation is a very inexpensive source of gas and liquids.” Electrification of the industry, and tighter regulations on methane, could take a sizable chunk of the industry’s emissions. That would be good for independent power producers, because it might require even more electricity than the new Site C dam would produce, especially if there is also aggressive electrification of other sectors of the economy such as transportation and home heating. Some electrification is already occurring in the south Montney region, but Austin said the government will also need to electrify the North Montney, where Petronas Energy Canada has most of its natural gas, if it has any hope of fitting the LNG industry into its climate change targets. Also, any future LNG projects, including LNG Canada’s second phase, would need to use electric drive in their liquefaction process, Austin said. “If we’re going to have an expanded gas and LNG industry in this province, we have to proceed with electrification as quickly as possible, otherwise we will never meet or even come close to meeting our greenhouse gas reduction targets,” Austin said. — Business in Vancouver files

B.C. introduces amendments on methane The B.C. government has introduced amendments to the Oil and Gas Activities Act to “support a made-in-B.C. approach to methane oversight” that is equivalent to federal regulations and provide a legal framework for off-site en-

vironmental mitigation. These amendments will create the legislative framework for a complaint mechanism that allows the public to request an investigation of alleged contraventions of methane emission regulations and

requires the B.C. Oil and Gas Commission to investigate. The amendments will also support government’s actions to strengthen environmental protection and remediation in areas where oil and gas activities occur.

For example, mitigating impacts to caribou habitat within an operating area by treating or restoring previously disturbed caribou habitat outside of the permit holder’s operating areas. — Daily Oil Bulletin


DECEMBER 14, 2018

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Rhyason wins Oilmen’s Bonspiel, Brad Brain Financial takes B event dillon giancola When all the rocks were thrown and all the food consumed, Rhyason Contracting was the last team left standing at the 58th Oilmen’s Bonspiel. Rhyason beat Team Epscan 6-4, in a game they controlled from the start, to win the A event final. “It feels wonderful. I was brought in at the last minute when they lost a player, and had never curled in the A event before. They kept me working hard, and I’m glad I didn’t let them down,” said Rhyason lead Dean Horn. The team consisted of Horn, second Dan Wuber, third Kevin Young, and skip Curtis Schafer. In addition to curling, the Oilmen’s Bonspiel is also about making new friends and winning games with people you’ve never met before. “They’re a great bunch of guys,” Horn said of his teammates. The B event winners were in a similar situation. Brad Brain Financial, consisting of Brad Brain, Ian Titley, Edward Schmidt, and Jeff Holland, beat IPAC 8-5 in the final. However, nobody on the

team even knew each other until the 2017 bonspiel, Brain’s first year playing, when they met for the first time and lost in the A final. “We had instant chemistry and it continued this year,” said Brain. 7C Contracting won the C event, and consisted of Ty Coates, Colby Coates, Ryan Gall, and Mike Tompkins. Spartan Control beat Balon in the D event by coin flip, after coming down from a 7-3 deficit to tie the game. They were Bill Burchill, Tim Montgomery, Kirk Thomson, and Pat Maclachlan. Safety Boss won the E event. Both Horn and Brain said that this was another top notch bonspiel. Though Brain only played in it for the second time, he saw the same effort go into this event that goes into all the Oilmen’s events, and was grateful for all the hard work of the organizing committee and community. “There may not be as many teams as there used to, but it’s not a reflection of the tournament. It’s a good tournament and a lot of fun, and always great to get out and spend time with the guys,” Brain said.

Dean Horn, Kevin Young, Curtis Schafer and Dan Wuber of the Rhyason Contracting team are the 2018 Oilmen’s Bonspiel A event champions. | Dillon Giancola Photos

Brad Brain, Edward Schmidt, Jeff Holland and Ian Titley of the Brad Brain Financial team with Oilmen’s Committee member Vic Moskalyk after winning the B event final.

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Safety Leadership: New perspective, new standards rob brown Following its inception in October 2017 with the merger of Enform and Oil Sands Safety Association, Energy Safety Canada has been busy laying the groundwork to be the national voice of safety in the oil and gas industry. Newly appointed President and CEO, Murray Elliott, told Pipeline News North more about what Energy Safety Canada was up to during its inaugural year. PNN: You have taken on a new role at Energy Safety Canada. Tell us about that. ME: During our first year, John Rhind was our CEO and I served as president. John was instrumental in developing the strategy and architecture for the new organization and was key in overseeing the change process. From the beginning, our succession plan was transparent and, in accordance with that plan, this fall I was appointed to the combined role of President and CEO, and John moved onto our Board of Directors. It has been a busy and successful year for our new organization, and we are on solid footing to deliver improved safety outcomes for industry. PNN: In a nutshell, what is Energy Safety Canada? What do you do? ME: We are the national safety association for the oil and gas industry. Our goal is the same as industry’s—zero injuries and zero incidents. In order to improve safe work performance, Energy Safety Canada focusses on four key areas: we collaborate with industry to develop common safety standards; deliver effective learning systems; share data analysis and safety expertise with workers and employers; and advocate for health and safety. PNN: How important is collaboration to achieving that goal? ME: It’s absolutely essential. Collaborating with all industry sectors, government and other stakeholders across Canada is required to successfully establish any safety standard. Our goal is to develop a single, agreed-upon way of doing things, and this cannot be achieved without input, cooperation and expertise from all parts of our industry. Energy Safety Canada is leading that collaboration. PNN: What has the organization been working on this year? ME: This past year was a pivotal one for Energy Safety Canada, and I would like to highlight a few milestones. As part of the merger work, we developed a five-year strategy. Approved by our Board of Directors, which includes members from trade associations like the Canadian Association of Petroleum Producers (CAPP), this strategy is focused on delivering the safety solutions industry needs based on data-driven safety interventions and agreed-upon standards. Energy Safety Canada was an active participant in the consultation process for the Government of Alberta’s Bill 30: An Act to Protect the Health and Well-being of Working Albertans. As a safety association, we view the Occu-

Murray Elliott, President and CEO, Energy Safety Canada

pational Health and Safety legislative changes as a positive step forward in advancing worker health and safety in Alberta. In the months before the legislation came into force, we worked with industry to provide tools and resources to ensure employers were prepared. These resources are available at EnergySafetyCanada.com Another priority area in the last year has been the legalization of cannabis. Industry has concerns about what that means for safety on oil and gas work sites. To that end, the Construction Owners Association of Alberta (COAA) and Energy Safety Canada jointly released an updated alcohol and drug policy model, The Canadian Model for Providing a Safe Workplace, Version 6.0. The Model is a detailed cross-industry guideline to support companies with updating their workplace impairment policies. The model is available on our website. We continue to talk to government and industry about the need for further education and research on the impacts of cannabis and impairment. Appropriate testing technologies and protocols must go hand-in-hand with workplace alcohol and drug testing regulations specific to safety-sensitive work environments. Another significant milestone for Energy Safety Canada was the creation of the Safety Standards Council, which represents approximately 70 per cent of activity in Canada’s oil and gas industry across all sectors and company sizes. The members have agreed to collaborate to set standards and adopt them within their own companies, creating a critical mass to lead the way for industry. The Council was a steward in the development of a single set of Life Saving Rules. Created to help address industry concerns and support broad industry adoption, nine rules were adopted from the International Association of Oil and Gas Producers (IOGP), with the addition of a Fit for Duty rule to reflect the Canadian oil and gas operating environment. PNN: Tell us more about these standards.

ME: The first two standards introduced by Energy Safety Canada were Life Saving Rules and the Common Safety Orientation (CSO). A common set of Life Saving Rules establishes a consistent approach to injury and incident prevention. The Rules have been endorsed and implemented to improve safety performance and/or mitigating risks to workers where a history of significant injuries or fatalities have occurred. A key step in selecting and defining the Life Saving Rules was to align them with the WCB’s fatality categories to ensure the rules address the primary classifications and causes of workplace deaths. Between 2001 and 2017 there were more than 300 fatalities within WCB’s oil and gas funding codes. Eighty per cent of these fatalities align with Energy Safety Canada’s Life Saving Rules, which means, 16 lives per year may have been prevented. With regard to the Common Safety Orientation, the Canadian oil and gas industry identified a need to have a single safety orientation. Right now, general safety orientations are subtly different from company to company resulting in redundant training and unnecessary cost across industry. The Canadian oil and gas industry identified a need to produce a single safety orientation delivered consistently. The adoption of the CSO makes it easier for workers to move from site to site and drives complexity and costs out of the system. A unified approach to oil and gas safety orientations will accelerate improvements in safe work performance, which is expected to result in fewer injuries and incidents. Employers and workers can check out our website to learn more. PNN: What can we expect from Energy Safety Canada in 2019? ME: When you look back at safety trends in Canada’s oil and gas industry over the past 30 years, you see overall continual improvement. But what got us to this point is not what will take us to the next level. That is why we are looking at the increased use of data and innovations in safety to drive improved safe work performance. These are the next steps that will bring us closer to our common vision of zero injuries and incidents. In 2019 and onwards, Energy Safety Canada will work to develop more data-driven safety interventions. For example, gathering data and developing leading indicators to identify priorities for creating safety standards, or using analytics to identify trends and proactively manage injury prevention. We will continue to work together with stakeholders to have frank and productive safety discussions about our industry and establish additional safety standards. This requires pulling the right people from our industry into the conversation, and we think we have done that with the creation of our Safety Standards Council and various task groups and committees. Energy Safety Canada will continue to take a leadership role when it comes to collaborating with industry to establish consistent safety standards, and, ultimately, drive safer work performance.


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The South Peace Oilmen’s Association enjoyed a fine meal and each others’ company as part of their annual Christmas Supper at Bear Mountain Ski Hill on December 12. If you are employed in the oil and gas industry and live in the Dawson Creek area, come out and see what the Association is all about. The Association meets on the second Wednesday of every month from September to June, 7 p.m. at Bear Mountain Ski Hill. | Austin Coziar Photo

Encana, BC Hydro, and NEAT present Energy Explorers in Mile Zero rob brown Come this January, you can expect Energy House at NLC in Dawson Creek to be a hub of activity – thanks to efforts of Encana and BC Hydro. The two powerhouses are plugging in with the Northern Environmental Action Team to present an energy literacy and education to the region. Energy Explorers, an energy literacy event targets both students in grades 5-7 and the general public on January 18 and 19, 2019.

Susan McGarvey, education coordinator with NEAT, says a handful of energy related acronyms are lining up. “PNG will be on hand with Energy is Awesome, while NLC will have programming, while Peace Energy Co-operative will be featuring a solar bike,” she says. “There will be a maker space that will allow participants to talk about energy of the future.” This two-day event is aiming to increase both understanding around our energy systems and curiosity around the systems that

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deliver energy, possible career options and/or trades training, adds Karen Mason-Bennett with NEAT about the event. The first day will be open for 10 classes to participate. Each class will participate in six stations exploring hands on opportunities for energy learning including, solar opportunities, how to build and repair wind turbines, trade opportunities, natural gas systems and more. “The second day is open to the public from 9:30 am to 2:30pm,” says McGarvey noting the broader

community can come and experience energy learning for themselves on Saturday. “We are offering field trips to Bear Mountain Wind Park (weather depending) on both days which will be facilitated by Alta Gas. We are in the midst of planning the remainder of the program and are doing our best to keep costs low for local educators and the public. We are reaching out to local partners and inviting them to join us as a sponsor for the day,” says Mason-Bennett.


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Petronas, Vitol sign LNG Canada supply deal Global energy trading firm Vitol has signed a 15-year deal to buy liquefied natural gas from Petronas, with LNG Canada as the primary source of supply. Petronas will supply 0.8 million tonnes of LNG per year starting in 2024, Vitol announced Thursday, Nov. 29. The primary supply will come from LNG Canada, Vitol said, though some will also come from other sources in Petronas’ global supply portfolio. “Petronas supplied our first LNG cargo in 2005 and we have now extended our LNG relationship until at least 2038,” Pablo Galante Escobar, Vitol’s head of LNG, said in a statement. “Vitol is committed to the longterm development of the LNG market and its evolution to become a more flexible and tradeable commodity.” Vitol delivered more than seven million tonnes of LNG in 2017, with customers in five continents, according to a company profile. Vitol joins Tokyo Gas and Toho-Gas in buying a share of gas through LNG Canada. Those two companies will be buying LNG from Mitsubishi Corp., which holds a 15% stake in LNG Canada, and owns upstream natural gas assets in Northeast B.C. through the Cutbank Ridge Partnership. Tokyo Gas and Toho-Gas announced they would be purchasing gas from LNG Canada one week after the $40-billion project was sanctioned by Shell and its investment partners on Oct. 2. Petronas holds a 25% stake in LNG Canada, and has significant gas reserves in the North Montney. It has committed seven trillion cubic feet to LNG Canada as part of its share in the project.

Conuma Coal picks up the hardware Conuma Coal Resources Ltd. Has recently picked up a handful of awards – employer of the year, the Walk the Talk award, and a community champion award. Conuma reps note the Employer of the year award is a spe-

Vitol and Petronas announced a binding heads of agreement for long-term LNG sale and purchase on Nov. 29, 2018. | Vitol Photo

cial feather in their cap, noting it places value on its employees above all else. “Safety is not a goal to be achieved at Conuma, it is an expectation. Employees deserve the security of a safe workplace ,” says Conuma president Mark Bartkoski.

Dates set for 2019 Peace Region Petroleum Show Both a four person scramble golf day and exhibitor meet and greet events will unofficially kick off the Peace Region Petroleum show next year, slated for May 15 and 16 of next year. The golf day goes Tuesday, May 14, and is limited to the first 288 registered or 72 teams. The event goes at the GP Golf and Country Club, located just south of Grande Prairie on Resources Road. The course website is gpgolf. ca. For more information call the Grande Prairie & District Chamber of Commerce at 780-532-5340. Deadline for entries into the golf is April 26, 2019. On May 15, at the Entrec Centre Grand Hallway in Evergreen Park will be a chance for exhibitors to unwind and connect with others during the Exhibitor Meet and Greet. Not registered for the show? We will be. Visit prpshow.com/ for more details and information.

GP Petroleum Association looks forward to STARS Hangar Dance STARS has partnered with the Grande Prairie Petroleum Association (GPPA) and STARS have joined forces since 2010 to hold the annual GPPA Hangar Dance – a night of food, dancing and fun in Grande Prairie. The ninth incarnation of the event goes January 26, 2019 at Evergreen Park. “We have raised more than $1.5 million at the event over the years,” says GPPA president Rob Petrone. For more information about the evening, email hangardance@ stars.ca

Kill Bill C-69, business group tells Senators Energy East, Pacific NorthWest LNG, Northern Gateway, Trans Mountain pipeline – these are some of the more high-profile multibillion-dollar projects that have been killed, cancelled, or postponed on Prime Minister Justin Trudeau’s watch. But if Canadians think it’s tough now to get a new pipeline approved in Canada under the current environmental review process, just wait until they see what’s in store

under the new Impact Assessment Act, warns a business lobby called Suits and Boots. The new act – Bill C-69, which is still before the Senate – would replace the Environmental Assessment Act with the Impact Assessment Act. “Bill C-69 is supposed to be the solution to our regulatory problems, but the business community feels it will add to them,” said Val Litwin, president and CEO of the BC Chamber of Commerce. Among the concerns over the new act is that it would make it easier to achieve standing as an intervener. “There’s no barrier of standing, so any number of paid political protesters, any group at all that wants to jam the hearings, has free rein to do so,” said Rick Peterson, president of Peterson Capital and founder of Suits and Boots, which represents 2,500 business people and investors. “Everybody we speak to who finances the energy sector is vehemently opposed to Bill C-69.” Canada has already seen a flight of capital by large energy companies. While the U.S. posted a 38% increase in investment in the oil and gas sector in 2017 – a total of $140 billion – investment in Canada’s oil and gas sector fell 19%, according to the Canadian Association of Petroleum Producers. If Bill C-69 becomes law, it will only deter investment more, Peterson said. His group is lobbying the Senate to kill the bill. “There will be a strike on investing capital in Canada,” Peterson said. “Why would foreign investors put money into Canada?” — Business in Vancouver


DECEMBER 14, 2018

PIPELINE NEWS NORTH •

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​Birchcliff picks up new Montney lands near ’science and tech’ well pad Birchcliff Energy has expanded its position in an area of the Montney play it believes to have high value potential. The company announced it has reached a $39-million deal for 18 sections of Montney land that are contiguous with is existing Pouce Coupe and Gordondale properties. The purchase increases Birchcliff’s Montney position to a “mostly contiguous” 217 gross acres. “In addition to consolidating our land position in the area, we believe that these lands are located on a significant liquids-rich trend in Pouce Coupe,” the company said in its third quarter results. The new lands are located near what Birchcliff calls its “science and technology pad” in Pouce Coupe, where it has drilled four successful wells in 2018. The purpose of the science and technology program is to collect high quality and high value data that can be used to enhance technical capabilities and understanding with respect to the drilling, completion and production from a multi-layer resource play, the company said earlier this year. The company plans to drill five wells from one pad on the lands in Q1/2019, with production expected to be processed at its Pouce Coupe Gas Plant. The deal is expected to close in January 2019. — JWN Energy

Excellence Awards nominatons open The Energy Excellence Awards program will highlight the excellence of some of the energy sector’s players, featuring a nomination and selection process that will draw attention to companies selected as examples of Operational Excellence, Innovation & Research Excellence, and Exporting Excellence. The Energy Excellence Awards program includes a nomination process that extends until the end of January, a series of articles on

Finning fundraiser for United Way a success — They came, they feasted and they imbibed, and at the end of it all they raised more than $10,000 for the United Way of Northern BC. Finning hosted a fundraiser event for the agency at Canadian Brewhouse on Friday, Nov. 30, and raised a grand total of $10,517 through ticket sales, 50/50 draws, and a silent auction. Two 50/50 draws both exceeded $1,000, and a Bradly Smoker, CAT Mini Fridge, and CAT Generator were among the bigger silent auction prizes up for grabs. Finning hosted the event as part of its annual campaign with the United Way of Northern BC. The money raised will go back into community programming in Fort St. John funded by United Way of Northern BC.

jwnenergy.com that will profile the nominated companies, and an awards ceremony that will take place on May 2 at Calgary’s Devonian Gardens. “The awards are presented by the Daily Oil Bulletin, which has served the oil and gas industry for over 80 years,” says Bemal Mehta, senior vice-president of energy intelligence at JWN. “We’ve provided energy industry data and intelligence and industry leadership over that period. We’ve also told the story of the industry’s positive accomplishments — but we recognize we could do an even better job of celebrating the industry’s successes.” Mehta says the Energy Excellence initiative comes at an ideal time, given the struggles Canada’s fossil fuel sector faces with “challenging commodity prices and unfair treatment” from governments and other sectors of Canadian society. Those challenges and attacks aside, the energy sector continues to dominate the country’s economy. A JWN committee, including staffers and outside judges, will be involved in the vetting process which will lead to the winners being selected. To access the online nomination forms, visit energyexcellenceawards.com. — JWN Energy

Crew Energy sets 2019 budget, with focus on West Septimus Crew Energy Inc. announced a conservative $95 to $105-million capital budget for 2019 leaving some wiggle room should the price of oil improve in the latter part of next year. The company’s spending guidance for 2018 is $90-$95 million, which compares to original guidance of $80-$85 million. Drilling activities will continue to focus on the ultra-condensate rich area at Greater Septimus. This includes plans to drill five (5.0 net) and complete three (3.0 net) ultracondensate rich wells at West Septimus. The company anticipates entering 2019 with seven (7.0 net) drilled but uncompleted wells, which will accelerate condensate production in 2019. Crew plans to drill one Montney lease-retention well and one exploratory horizon-

tal well. Crew has also allocated capital to its heavy oil business with plans to drill three multi-leg horizontal wells, which are expected to maintain production volumes. The company plans to maintain an average production of 22,000 to 23,000 boe/d (27 per cent liquids and 73 per cent natural gas). Crew has currently shut in 2,000 boe/d, which includes 1,300 boe/d of non-Montney gas production. It is budgeted to remain shut in for the entire year at current gas prices. In the second and third quarter, 700 bbls/d of shut-in heavy oil is planned to be phased back in production as the price of Western Canadian Select (WCS) is forecast to improve. On Jan. 1, 2019 the company’s pipeline connecting its West Septimus facility to the existing TCPL Saturn meter station will be commissioned, providing the company with physical access to all three major natural gas egress systems transporting natural gas out of Western Canada. Of the $95 million to $105 capital expenditures, a total of 75 per cent will be allocated to Greater Septimus, six per cent to lease retention and exploration, and six per cent to heavy oil and 13 per cent to land, seismic, general and administration. — JWN Energy


DECEMBER 14, 2018

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• 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.

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