PNN July 2019 by Pipeline News North

PIPELINE

AUGUST / SEPTEMBER 2018

NEWS NORTH JULY 2019 FREE

pipelinenewsnorth.ca

Serving the Oil and Gas Industry in Northern B.C. and Alberta

(780) 568-3416

www.grandeprairiekubota.com

R0011657774

VOL. 11 • ISSUE 7 • DIST: 11,600

A dose of clarity to Canada’s divisive oil and gas debate matt preprost On June 17, the Canadian government declared a national climate emergency. The next day, on June 18, it re-affirmed its decision to expand the Trans Mountain oil pipeline from landlocked Edmonton to tidewater in Burnaby on the west coast. Three days later, on June 21, Heidi McKillop, a young filmmaker from Calgary, released her debut documentary called A Stranded Nation, a 68-minute look at just how much oil and gas resources are integrated into Canadian society, and how divisive debate has pitted the nation’s economic interests against its environmental interests. Canadians can be forgiven for being confused by the doublespeak coming from its government and Prime Minister Justin Trudeau, McKillop says. “The leader is confused,” Heidi McKillop, from a scene in her documentary A Stranded Nation. McKillop said before a screening of her film in Fort St. John on June 27. “I’d love to have a conversation some reasoned perspectives film, with support from assistant with him because I don’t know about Canada’s energy mix and producer Arden Shibley. It was what he’s being fed. He’s obviously regulatory practices, and how born out of a shift in her attitude got a lot of people helping feed him wealth generated by resource towards the oil and gas industry. information and support. But I development is redistributed McKillop went from growing up definitely think, as a leader, he tries across the country for the benefit in New Brunswick, studying social to please everybody, and in the end of all. work, and opposing hydraulic doesn’t please anyone.” “The one thing about politics in fracturing, to making her way west Trudeau isn’t a feature subject this conversation is that it has been and eventually working in a surface in McKillop’s documentary, but very divisive in the media. When land department for an oil firm in industry leaders, former premiers, you put your boots on the ground, Calgary. current MPs, financial analysts, it’s not as divisive as what people “It took me a couple of years to and pro-resource activists are. think,” McKillop said. get out of that dirty oil mentality,” Combined, they form a narrative Watch: A Stranded Nation McKillop said. that tries to counterbalance It’s taken McKillop two years “I was doing reception, I wasn’t the political hyperbole with to produce her self-financed fully integrated into the day-to-

day regulatory process of what people would be looking at as the land man. It was really then when I started working with Directive 56 (Alberta’s regulation for energy development applications) that I was like, oh my gosh, this is so intense.” So, McKillop began doing some more homework, highlighting some key facts she wanted to raise public awareness about, drafting storyboards, and identifying interview subjects. CONTINUED ON PAGE 6

When You Are Out in the Field, Time IS Money. QUALITY PARTS, EXPERT SERVICE! 9224 100 Street, Fort St. John, BC

(250)785-0463 After Hours - Leave Message

OPEN Mon - Fri: 8 am - 5 pm Sat: 8 am - Noon

• PIPELINE NEWS NORTH

JULY 19, 2019

10th Annual FSJ Oilmen’s FAMILY CAMP WEEKEND August 9th - 11th

EVENT INFORMATION • The 10th Annual Oilmen’s Family Camp Weekend is an event the entire family can enjoy. Friday will be registration day between 4-8pm, set up camp, meet and greet, kid’s activities and dinner. We have planned for wagon rides and a movie on the big screen. • Saturday we have various planned events at the campsite for all to enjoy and food is provided. Activities include a multiple of team challenges and wagon rides. Duck Auctions and Reverse Draw after the sponsored dinner. Movies and popcorn on the jumbo screen in the park. • Sunday is highlighted by helicopter rides for the kids followed by games, crafts, bouncy castles, wagon rides, and ﬁre trucks. To wrap up the weekend Bailey Helicopters drops 600 ducks into the Peace River for the 10th Annual Duck Race. • There will be a special painting event for the ﬁrst 100 moms who register for it, split into groups of 50 over Friday and Saturday night during the movies. • Surprise events throughout the weekend.

Any Questions regarding registration feel free to contact

Chris Clay (250) 264-2729

JULY 19, 2019

PIPELINE NEWS NORTH •

West Stoddard gas plant. | Chuck Fowler Photo

What the deuce is going on in No Man’s Land?

he feeling in the patch is a strange one these days. Large plants are being built up north, keeping facility construct companies busy in the area. Turnaround season wasn’t too bad for most, and a surge of abandonments appears to cause an up tick in service rig activity. Yet one company is buying equipment and another is sending equipment to auction. Work is coming in small waves: go hard for a week then sit and wait, rinse and repeat. It feels flat out there, with no significant drilling programs or multi-pad completions taking place, no buzz about drilling up production, just a little here and there. Many of the new gas fields have had their performance proven by producers, so drilling more holes with nowhere to put the gas is asinine. It’s a wait

and see game of getting a place to put the gas and condensate while getting any money for it. In the case of natural gas, it is almost a waste product at this point. In order to get the liquids you must take the gas, but since it’s worth nothing, it’s more of a liability to produce it. When it’s busy, the demand for services rapidly outstrips the available equipment and people to do the job required. Companies obviously invest in more equipment and people to capitalize on these opportunities, then the door slams on the industry like we’ve seen over the past four or five years, and invariably we have a saturated market. Anecdotally, this is what we have happening in the region right now, and it is putting pressure on companies to either close their doors or eek out another month, another quarter, another year.

Chuck Fowler When the area becomes saturated, despair sometimes sets in, companies cut the prices to get work, and their competition follows. In the long run, it becomes a race to the bottom with no profit in sight; the service becomes a commodity with no distinguishable difference. Nevertheless, and this is just my observation, smaller local companies with skilled employees seem to be surviving the best and are even growing. Their ability to run lean and put skilled drivers, trades

people, and labourers consistently on job sites is getting them the work. The value of Bob, John, and Susan being the ones reliably being on the job site is increasing in value to many of the operations staff working for the local producer. It becomes the competitive advantage of not having to babysit the company in the field. By way of comparison, large companies sometimes fill seats in the region with workers from all over, so you don’t know what you’re getting. The smaller companies are competitive but are not cutting their prices — the savings to the producer is coming in less hours to do the job. None of which I have written about it is earth shattering, and is covered off in the first day of an economics class. At the same time, it’s both interesting and somewhat troubling to see it play out

in the area. There needs to an be increase in activity or a decreas in companies to offer the services. The impending hope of new pipelines and LNG have companies holding on, but something eventually has to give. In the ups and downs of the patch, there str two approaches depending on the activity level. In crazy times, it’s “send what you have, and they should have been here five minutes ago.” It’s the opposite in slow times: “What’s your best price and may we put you on the vendors list?” Right now, we are somewhere in between — No Man’s Land, if you will, some making it to the other side, others retreating, and many stuck in the middle, not knowing which way to go.

Chuck Fowler lives and works in Fort St. John.

• PIPELINE NEWS NORTH JULY 19, 2019

PNN

LNG trades training program for women launched

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.

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

LNG Canada’s main contractor launches program to bring more women in into construction trades.

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

NeLsoN BeNNett

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

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

www.pipelinenewsnorth.ca

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

LNG Canada and its main contractor, JGC Fluor, are launching a new four-week workreadiness program aimed at getting more women into the skilled trades. The program, dubbed Your Place, is intended to attract, recruit and retain more women in construction trades. “Women in British Columbia currently represent just under 5% of a typical construction workforce, despite comprising 50% of the working population,” Andy Calitz, CEO of LNG Canada, said in a press release. “This lack of diversity is not a women’s issue, it is a workplace issue. We are missing out on a talented demographic who will enter careers in the skilled construction trades and help British Columbia prosper. We want women to know there is a place for them on our project.” For women graduating from trades training

programs, JGC Fluor will provide entry level opportunities for graduate trainees on the $40 billion LNG Canada project. At peak construction, the project will employ up to 7,500 workers. Women who already have trades skills are also encouraged to apply for jobs on the project. “By providing training opportunities and employment support, Your Place will help remove barriers for women who want to enter the skilled trades and pursue a career in B.C.’s energy sector,” said Michelle Mungall, Minister of Energy, Mines and Petroleum Resources. The four-week training program is open to all women 18 and older. Training will be provided in Kitimat. For those women who sign up for the program, the company will cover the cost of return flights and accommodation during the four-week program. — Business in Vancouver

oGC green lights Woodfibre LNG JeNNIFer tHUNCHer The BC Oil and Gas Commission has approved Woodfibre LNG’s application for a permit for its planned Squamish liquefied natural gas export facility. Officials with the commission reviewed the project’s impact on land and wildlife, technical engineering, archaeology, as well as consultation processes with First Nations and any affected landowners, a spokesperson said. The permit contains 35 conditions in addition to standard regulatory requirements. Conditions relate to various aspects of the project, such as its design, construction and operation including restrictions around flaring, working around streams, the discovery of any

artifacts, noise and light pollution. “Following a rigorous process, Woodfibre LNG is pleased to have received our Facility Permit issued from the BC Oil and Gas Commission (BC OGC), one of the key permits required for construction and operation of the project,” said Woodfibre LNG president David Keane in an emailed statement. “As we move towards construction, we will strive to exceed the high standards of public and environmental safety that are expected of us by the Canadian, B.C., and Squamish Nation governments, and the Squamish community.” Keane said a final investment decision on the project may be made by the end of this summer. — Squamish Chief

JULY 19, 2019

PIPELINE NEWS NORTH •

ARDENT ENERGY H-65R & F-101R THERMOSTATICALLY CONTROLLED WOOD STOVES

LOAD THEM UP WITH WOOD, SET THE THERMOSTAT AND RELAX H-65R F-101R

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

780-538-1987 • www.gasfireplace.net

Surerus Murphy starts hiring for Kamloops section of TMX The green light to begin construction on the Trans Mountain Expansion hasn’t quite been given, but Surerus Murphy is starting the hunt for people to put the pipe in the ground. The contractor has been tasked with the 5A section of the pipeline, which will be the Kamloops and Merritt pieces. Heather Eddy, company director of human resources and development, says construction of their section is expected to last somewhere between 30 and 34 months, peaking for a sixmonth stretch in the middle. “When we’re fully ramped up we’ll have over 600 people working on our section of the pipeline,” she says. “We really do intend to hire as many local and Indigenous employees as possible.” While many of those positions haven’t been determined yet, hiring for some advance positions has begun, she says, with leadership and administration positions at the forefront. Sub-contractors are also being lined up early on. A slow rampup will occur over time before the peak is reached.

“As we finish main construction then numbers will decline again,” she says. “(But) some of the jobs will be there the whole time.” She adds that the start date hasn’t been set by Trans Mountain yet and some numbers are still changing, meaning exact job numbers aren’t available yet. The bulk of the jobs will be labourers and operators, Eddy explains, but there’s going to be a variety of skills, training and experience needed. Mechanics, welders, environmental advisers, health and safety personnel, human resource, and procurement specialists are all due to be hired. While certain jobs will need specific skills and training, the one thing everyone will need is pipeline construction safety training. The course can be done online in about six hours, or in a classroom. Eddy says it usually runs around $100 to $125 for the course. Eddy and her team are looking to fill specific roles right now, but they’re taking in all resumes and keeping them on file for when they start hiring all positions. — Kamloops Matters

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

FACTORY DIRECT! 11 Profiles - 32+ colours

Call Joseph 250-794-6618

WEEKLY RIG REPORT Every Thursday at pipelinenewsnorth.ca

AURORA

a manufacturer of:

STEEL & TRIM

1-877-8METAL2

jwalter@aurorast.com

Visit our website www.versaframe.ca

R0011658426

• Up to 100,000 BTU/Hour Output • Stand-Alone or Forced-Air Furnace • Optional Water Coil Allows You to Heat Your Domestic Water Lines

• PIPELINE NEWS NORTH JULY 19, 2019

Rex Murphy in FSJ? Rex Murphy’s speaking tour may soon come to Fort St. John. The Independent Contractors and Businesses Association is looking to bring the popular political commentator to town in September. “He’s certainly positive on resource development, and that message has to get out more often,” said Art Jarvis, the ICBA’s representative in the Northeast. Murphy recently spoke at the Saskatchewan Oil and Gas Show in Weyburn in June. More details, including a date and venue in Fort St. John, will be announced as they are finalized.

Water Technology Development Centre online After 10 years in the making, the Water Technology Development Centre (WTDC) at Suncor Energy’s Firebag SAGD project is officially up and running, Canada’s Oil Sands Innovation Alliance tweeted on Monday. The project, which won a DOB Energy Excellence Award earlier this year, is a partnership under COSIA that will allow its partners to test new water technologies to improve the sustainability performance of thermal in situ oilsands projects.

The $143-million “live fluid” test facility is a collaboration between Suncor, Canadian Natural Resources, CNOOC, Devon Canada and Husky Energy. The companies say the WTDC responds to the industry challenge of developing technologies past the lab or bench scale to the pilot or near-commercial scale. The WTDC is expected to speed the development and implementation of new water treatment technologies, shortening

the current eight-year timeframe required to field test technologies, while improving returns on investment for member companies. The partner companies were ready to start construction in 2014 but, when oil prices tumbled, those plans were put on hold. While the delay set back the facility’s timeline, it resulted in a reduction in capital cost of approximately $20 million. — JWN Energy

If you need it, we can build it

Complete Oilfield Fishing & Rentals

Black Gold Fishing Services is the right choice for your downhole fishing & tool needs. With four convenient locations in Cold Lake, Lloydminster, Swift Current and Grande Prairie, we offer the finest in fishing services with an extensive tool selection. We are here to meet the needs of our customers 24/7, every day of the year. No matter when you need us, we’ll be there with quick response and quality service.

Fishing Tool Services and Rental Equipment • • • • • • • • • • • • • •

Open Hole Fishing Cased Hole Fishing Casing Re-Entry Casing Repair Swaging Equipment Remedial Work Overs Work Over Planning & Engineering Coiled Tubing Fishing Wireline Fishing Complete Thru Tubing Department Hot Hole - Mud Motors Tool Construction & Design Orientation Tools & Design Complete Wireline Pipe Recovery Services

• Free Point & Back Off Jet & Chemical Cutting Services • 250k Breakout Machine • High Performance Mills & wash Shoe’s • Complete Oilfield Tool Rental Department • Wash Over Pipe & Handling Equipment • Drill Collars & Handling Equipment • Casing Patches • Casing & Liner Cutting & Retrieval • Milling Tools • Sand Bailer’s • Magnets 2 1/4”-14.0” • Experienced Well Site Fishing Tool Supervisors

OFFICE LOCATIONS 12 63221 HWY 897 Cold Lake, AB (780) 826-9566

15067 HWY 16 Lloydminster, AB (587) 789-0800

165 Alexander Drive Swift Current, SK (306) 315-2223

Calgary Sales (403) 700-6279

How We Help

We provide open & cased hole fishing services, casing repair, whipstocks, and so much more. We also offer tool construction and design to meet our customers needs. We fish wireline, coiled tubing, packers and plugs to complete directional drill strings and anything else you may have. Our team has all the right tools for the job and will provide the fastest quality service possible. We work quickly, accurately assessing and diagnosing problems to provide the most efficient service to get you back up and running. In addition to our fishing and rental services, we also have a breakout machine. We have the right equipment available any time you need it. Trust us to deliver the finest services and equipment, all backed by the experience and knowledge to meet your needs. Our fully stocked fishing shops and rental shops are at your disposal at all times. We also have a machine shop complete with a rotary grinder, lathe, and mill to make quick adjustments or build complete tools from scratch.

Thank you for your interest. For questions or comments, please use the information listed here. We look forward to hearing from you soon.

100% Canadian Owned & Operated

540109

JULY 19, 2019

PIPELINE NEWS NORTH •

FortisBC inks two-year LNG export contract NeLsoN BeNNett FortisBC has inked its first term contract to ship liquefied natural gas to China. Independent shippers have exported LNG produced at FortisBC’s Tilbury plant to China since 2017, but those shipments have mostly been test and spot market sales. FortisBC has now inked a twoyear contract with Top Speed Energy to ship 53,000 tonnes of LNG per year to China, until 2021. “It’s been more on a spot basis, and it’s been a number of different companies testing logistic chain and everything,” said Doug Stout, FortisBC’s vicepresident of market development and external relations. “So from our view, this one, with a two-year commitment – and Top Speed has also committed to put more money into buying ISO containers – it shows, I think, the viability of the market.” The gas will mostly be used by industrial and commercial users in China, Stout said.

“It replaces coal, for the most part, in localized small and midscale industrial applications,” Stout said. The LNG will be shipped via ISO containers, which can be moved by container ship, as opposed to the specialized tankers used for shipping larger volumes of LNG. Top Speed will ship out 60 ISO containers each week. FortisBC’s Tilbury Island LNG plant, which was originally used strictly for producing LNG for backup, underwent a $400 million expansion. The plant can now produce up to 250,000 tonnes of LNG per year, which is minuscule compared to the 26 million tonnes per annum that the LNG Canada plant in Kitimat will produce. FortisBC is already looking into another expansion to double the plant’s capacity. In addition to a developing an LNG export market, FortisBC also thinks there is a good potential market for LNG bunkering for the marine sector. — Business in Vancouver

Brandt Pipelayers are built to succeed in the most challenging conditions. Our unique design pairs the performance advantages of the John Deere 1050K dozer with Brandt’s exclusive boom and winch configuration and best-in-class SmartLift™ Dynamic Stability Monitoring system for unrivalled capacity, load control and operator visibility. The result is the safest, best-handling and most stable machine on the jobsite. Because, when all is said and done, nobody works harder than Brandt to keep you productive and profitable. That’s Powerful Value. Delivered.

SAY HELLO TO THE TOUGHEST, SAFEST, AND MOST STABLE PIPELAYERS ON EARTH.

brandt.ca 1-877-533-3133

RENT OR LEASE OPTIONS Available from Brandt through your local John Deere dealer. Contact Brandt Equipment Solutions for details.

• PIPELINE NEWS NORTH JULY 19, 2019

Bellatrix’s Alder Flats operations

Alberta Government Focusing On Better Market Access For Province’s Natgas Industry The Alberta government is concerned about the future of natural gas development and wants to facilitate greater market access for LNG. “The single biggest thing we could do to reduce global CO2 emissions would be to massively increase Alberta LNG exports to Asian and other markets,” Premier Jason Kenney said recently. In recognition of the importance of the natural gas industry, Kenney’s UCP government has appointed the province’s first associate minister for natural gas (Morinville-St. Albert MLA Dale Nally), backed by an associate deputy minister for natural gas. “This is because the gas industry gets crowded out and marginalized by all of the excess focus and attention on oil in general and bitumen in particular,” said the premier. “We want to have a voice at the political and senior officials’ level that is ever focused on representing the best interests of the gas producers.” In its election platform, the government committed to implementing all the relevant recommendations of the Natural Gas Advisory Panel co-chaired by Hal Kvisle, a retired CEO of TC Energy Corporation. Kenney said

he has been talking to Russ Girling, the company’s current CEO, and “we know there are a number of very complex interconnected issues on this.” Kenney said his government also believes that it needs to work with its municipal partners to address the challenge of ever-increasing property tax bills “that are close to killing” some of Alberta’s natural gas companies with more mature dry gas assets. These companies have been running down their balance sheets over the last two years and simply cannot afford to pay property taxes at those levels, he said. “I want to have a very frank conversation with those municipalities and my advice will be: do not kill the goose that laid the golden egg,” the premier said. As for the government’s pledge to reduce red tape, “we mean to move fast on this,” with a Red Tape Reduction Act and the appointment of associate minister for red tape reduction, he said. The government will follow the template of former British Columbia premier Gordon Campbell who targeted a onethird reduction in the number of regulatory requirements imposed on the B.C. economy and managed

to reduce the number by 41 per cent. That is one of the reasons B.C. has had strong economic growth for 15 years, according to Kenney. “What has happened to our idea of “get ’er done, Alberta?” he asked. “We all slap ourselves on the back for having this great entrepreneurial culture but for some reason in the good years we allowed an ever-growing layering of regulatory complexity … and now we find ourselves one of the most over-regulated and slowestmoving economies in North America,” Kenney said. Natural Gas Advisory Panel cited need for province to tackle regulatory ‘paralysis’ The previous Alberta NDP government was urged by the natural gas panel to take a leadership role in resolving the “serious and troubling headwinds currently assaulting” the province’s natural gas resources. “Alberta has an opportunity to position itself as a competitive and responsible place for future natural gas investment,” the panel of Kvisle, Brenda Kenney and Terrance Kutryk, said in a 72-page

report (Roadmap to Recovery: Reviving Alberta’s Natural Gas Industry) to then energy minister Marg McCuaig-Boyd. In a carbonconstrained future, the transition to lower carbon fuels will drive growth in natural gas use in North America and globally, it suggested. Although Alberta’s abundant, world-class natural gas resources can provide economic opportunities for generations of Albertans and Canadians into the future, “urgent action is required now to ensure Alberta capitalizes on this legacy,” the panel warned. It said that in its engagement with stakeholders several common themes had emerged including regulatory “paralysis,” the pace and scale of LNG development, pipeline system lag, the recognition of natural gas as a low carbon fuel and Alberta competitiveness. Describing the challenges facing the gas industry as “severe,” the panel emphasized the need and urgency for the implementation of practical remedies to reduce regulatory inefficiency to restore the health of an industry that has the potential to contribute up to $231 billion in Alberta GDP between 2017 and 2027. “Lengthy federal and provincial

JULY 19, 2019

and bureaucratic processes are a major impediment to the future success of Alberta’s natural gas industry,” it said. “The need to understand and mitigate environmental and social impacts is well understood by industry participants, but regulatory processes have broken down in the face of relentless activist pressure and ineffective process management by regulatory and government authorities,” the report stated. “This must be resolved. Need for LNG projects In the short-term, though, one of the most effective actions to “grow the pie” is securing a second world-class West Coast LNG project that achieves its final investment decision by December 2020, said the panel. To expedite large-scale, long-term LNG projects, it recommended strong co-operation and alignment between the Alberta and British Columbia governments. “We certainly hope that we get through FID [final investment decision] on another major West Coast LNG project and we will be as facilitative as we can in that respect,” Kenney said. Increasing market access also means seeking a closer relationship with Quebec. The Alberta premier met last week with Premier Francois Legault, where he was expected to discuss the proposal for the Energie Saguenay LNG project and another LNG proposal to the Gulf of St. Lawrence. “LNG represents the best opportunity for western Canadian demand growth and diversification, and is regarded as the only option that will make a material difference in western Canadian natural gas markets,” the panel said. “Achieving multiple LNG projects is vital to the ability of Alberta’s natural gas sector to recover and flourish,” it said. “And yet, for Alberta to compete successfully in proposed LNG projects, the systemic challenges surfaced in this report must be resolved.” The Canadian regulatory and political

environment has not been supportive of world-scale LNG projects, it noted, citing the 2017 decision by PETRONAS to abandon its proposed LNG project near Prince Rupert. “Canadian regulatory processes and the absence of a skilled labour force on the West Coast are major drivers of both delays and costs,” said the panel. “In addition, large energy projects across Canada are often subject to a myriad of stall tactics by opponents, challenging jurisdiction or minor details of permitting, seeking to frustrate proponents through significant and costly delays in hopes they will eventually abandon their projects.” While these risks are real, they can be overcome with strong leadership from governments that not only set forth a compelling vision for the sector, but enable its execution with the necessary means and protections, the report suggested. Collaboration between Alberta and B.C. also could resolve regulatory issues, exerting provincial pressure on the federal government, the National Energy Board (NEB) and other federal agencies, it said. That alignment also could find solutions to Indigenous issues that bring benefits to Indigenous communities without risking the economics or delaying the construction of LNG infrastructure. “Provincial governments must weigh in to provide a counterbalance to relentless activist opposition to energy development in Western Canada,” said the report. “Strong commitment by governments and companies to environmental and social pipeline performance is crucial; the support of government must continuously improve and be transparent and verifiable.” The crux of the issue is whether or not Canada will produce its fossil-based energy reserves, said the report. “To secure longterm LNG projects and the related economic benefits, governments must be unequivocal that their answer is yes.”

PIPELINE NEWS NORTH •

This article is part of a new monthly editorial series “Canada, LNG and the natural gas economy.” This month’s article is supported by Bellatrix Exploration Ltd.

Bellatrix Exploration Ltd. strongly supports the use of clean, reliable and abundant natural gas as the fuel source necessary to bridge the gap to renewable energy. We believe in advocating for Canadian natural gas and we are pleased to sponsor this article. We hope it will help you have positive, fact-based conversations with your peers on the benefits and uses of natural gas in our everyday lives. Bellatrix is proud to be a Canadian company responsibly developing our natural gas assets in west central Alberta. We love natural gas and we want you to as well! We welcome you to learn more about us at www.bxe.com, or on LinkedIn, Facebook and Twitter.

CONTINUED ON PAGE 10

This initiative is also supported by the Canadian Society for Unconventional Resources (CSUR), which is a leading Canadian source of factual, unbiased technical information on the development of unconventional oil and gas resources.

“ What has happened to our idea of ‘Get ’er done, Alberta?’ ” - Jason Kenney

• PIPELINE NEWS NORTH

JULY 19, 2019

TC Energy works on construction of the Otter Lake Compressor Station, part of the NGTL System in northern Alberta.

Government role in marketing commitments FROM PAGE NINE The panel proposed that Canadian governments consider assisting long-term throughput and marketing commitments on pipelines and liquefaction plants moving western Canadian gas to Asian markets. “Long-term throughput commitments supported by credit-worthy governments send a strong signal of support for large infrastructure projects.” To enhance the financial ability of small producers to make long-term pipeline commitments, the panel said the Alberta government could launch aggregate credit support pools. “Contract term guarantees or letters of credit need not involve government support, however, Alberta can conduct reverse auctions on behalf of producers for third parties to provide these services,” it said. The government could also consider direct participation as a long-term shipper or credit provider, ideally in the form of latter year commitments, or alternatively, Alberta and B.C. could contract for long-term transportation and liquefaction capacity for resale on a short-term basis. The panel, though, urged government caution in examining direct participation in the building, ownership, and operation of pipelines and LNG facilities. “Private sector operators are better positioned to manage the risks and complexities of planning and

executing such projects,” it said. In its report, the panel emphasized the need to encourage industry durability and longterm sustainability with Alberta setting the vision with a strong position on natural gas, including market access, competitiveness and public interest decision-making. Among the issues the natural gas industry has to contend are pipeline capacity issues and barriers to incremental expansions, the panel found. Need for accelerated NGTL expansion, spare capacity Alberta should achieve greater system flexibility and responsiveness through spare pipeline capacity on critical pipeline segments through expansion of major trunk lines within Alberta, primarily on the NOVA Gas Transmission Ltd. (NGTL) System, said the report. The panel recommended that the Alberta government work with producers, pipeline companies, and the NEB to add appropriate spare capacity quickly. “Such spare capacity may raise tolls, but higher tolls would be offset by narrower differentials and higher NIT [NOVA Inventory Transfer] prices, which would also increase Crown royalties,” it said. “The overall economic cost to producers and governments of being ‘pipe short’ is far greater than the risk of carrying extra costs of being ‘pipe long’ with underutilized capacity.”

The costs could be recovered through broad-based NGTL tolls, recognizing the unique considerations of legacy producers who have been paying transportation tolls on depreciated assets for many years and who do not require the incremental capacity, said the panel. “The Alberta economy would benefit from the accelerated expansion of NGTL,” the report concluded. “An accelerated expansion application by TransCanada, supported by producers and the Government of Alberta, would almost certainly receive approval by the NEB.” NGTL expansions lagging “Alberta’s existing gas transmission infrastructure is stressed to capacity as a result of a massive shift in production from mature southeast Alberta plays to the Montney and Deep Basin plays of northwest Alberta and northeast British Columbia,” said the panel. Expansion and optimization of the NGTL System has not kept up with growth in gas production and this has resulted in severely negative impacts on wellhead prices, producer cash flows, and provincial royalties, it noted. “Ineffective regulatory processes and complicated, burdensome commercial arrangements must be addressed to accelerate NGTL expansion, provide spare capacity, and make sure our future production can get to market unimpeded.”

JULY 19, 2019

PIPELINE NEWS NORTH •

The Shepard Energy Centre in Calgary.

Gas-fired power generation also could become an attractive market for western Canadian natural gas as coal-fired plants reach end of life. Gas-fired generation is complementary to wind and solar, meeting demand two-thirds of the time when wind and solar are not available Although commitments to move gas from wellhead to NIT are not especially difficult for producers, the timelines for connecting gas to NIT are excessive, according to the panel. “Somewhat greater contractual flexibility and accelerated regulatory approvals would improve access from wellhead to NIT,” it said. At the same time, commitments to move gas from NIT to Empress or Crowsnest are contractually and financially difficult, and represent severe barriers for producers wishing to move their gas to markets beyond NIT, said the report. “Shorter contract terms, contract renewal optionality, and more efficient regulatory processes are required to alleviate the bottlenecks between NIT and Empress or Alberta-B.C. border export delivery points.” Panel recommendations included the establishment of finite competitive timeframes for both routine applications and for each stage of more complex, nonroutine application approvals. The report also proposed the province act as a facilitator with TC Energy/shippers on plans to increase capacity on constrained sections of the NGTL System. In the medium term, the panel proposed that

the government introduce a provincial preapproval process so projects can be “trigger ready” for more timely capacity additions along with seeking alternative proposals for capacity additions within Alberta as these would not be federally regulated. The panel also acknowledged that when it comes to adding new capacity, it is difficult to achieve consensus on solutions due to competing cost and revenue models. Shippers with market diversification and sufficient (often excess) firm capacity do not need additional capacity and oppose paying for something they do not need, it said. Legacy producers (mainly dry gas in the south) are already cost-challenged and are resistant to paying for service additions in areas they would not use. “This is stretching at the fabric of the ‘rolled-in’ tolling principle,” the report suggested. Western Canadian opportunities While LNG export markets are important, Western Canada also offers large, stable and growing markets for natural gas by virtue of cold winters, growing industrial demand and

growth in gas-fired power generation, said the report. “Importantly, the western Canadian gas market is generally not accessible to U.S. producers.” Gas-fired power generation also could become an attractive market for western Canadian natural gas as coal-fired plants reach end of life, it said. “Gas-fired generation is complementary to wind and solar, meeting demand two-thirds of the time when wind and solar are not available.” Pipeline tolling arrangements that simplify existing tolling structures within Western Canada would have a positive impact on regional gas demand, the report concluded. For example, a seamless tolling model to move gas from northwest Alberta to burner tips in Manitoba, Saskatchewan, and southeast B.C. would allow producers greater flexibility in serving those markets through shorter-term, more competitive marketing arrangements, it said. Although TC Energy is willing to simplify western Canadian tolling arrangements, producer support and regulatory approvals are required, said the panel, which urged the Alberta government to voice its support.

• PIPELINE NEWS NORTH JULY 19, 2019

Pacific Oil and Gas completes acquisition of Canbriam Energy Pacific Oil and Gas announced that it has completed its acquisition of Canbriam Energy. The two companies announced Pacific had acquired all issued and outstanding shares of Canbriam. “We welcome the Canbriam team to Pacific Oil and Gas Ltd,” Ratnesh Bedi, president of PO&G, said in a statement.

“Our intention is to continue to produce the cleanest natural gas from the Montney region, and to help reduce global GHG emissions by sharing that resource through international export.” The deal advance’s Pacific’s liquefied natural gas aspirations through it’s $1.8-billion Woodfibre LNG project in Squamish. The

TRIBAL TRADERS ARTS AND CRAFTS FROM AROUND THE WORLD

CARVINGS EMBROIDERY ON CLOTHING PURSES JEWELLERY FIRST NATION ART

NOW OPEN AT DAWSON CREEK MALL Unit 17 - 11000 8th Street Dawson Creek, B.C OPEN 7 DAYS A WEEK (1) 778-386-5544

facility is licensed to export 2.1 million tonnes of liquefied natural gas per year for 40 years. “We are pleased to close this acquisition and look forward to a seamless integration with Pacific Oil and Gas,” said Paul Myers, Canbriam’s president and chief executive officer. “We expect to continue to

FROM PAGE ONE “I wanted to make sure I understood the topics, what were the major trending issues,” McKillop said. “I broke it down like I was writing a university thesis: what is my thesis, what is my background, what am I trying to say, what are people trying to say? And I had these storyboards of random facts and things I thought were really important.” Some of those facts were a-ha moments for McKillop, such as learning her home province of New Brunswick received $1.76 billion in federal transfer payments in 2017. Those payments, largely supported by natural resource revenues, made up practically one-fifth of New Brunswick’s economy. “That, in itself, should just shock people. It’s like having a massive industry,” McKillop said. “I look at my province, they’re really struggling. As a New Brunswicker, I go back home a lot, at least twice a year, and small businesses go under all the time, the tax rate is absolutely ridiculous, most of the young people move away

responsibly develop our prolific, low-cost Montney resource to support future natural gas export opportunities in Canada.” Earlier this week, Pacific announced it signed a sales agreement with BP Gas Marketing Limited for 0.75 million tonnes per year of LNG over 15 years from the Woodfibre facility.

because there are no opportunities. It’s really hard to keep that retention and those opportunities in house. “We have an aging population, we have a lot of problems with our health care system because of that, and there’s just no money. There’s no economy, there’s no private sector. So, I think oil and gas and the (Energy East) pipeline, when that was really cancelled, would have been a huge benefit to my fellow New Brunswickers.” McKillop plans to take her film across Canada in the lead-up to the federal election this October, and spark some serious face-to-face conversation with communities. “I’m hitting up places I know are prominently oil and gas resource based areas to get that viewership and support going for the film,” McKillop said. “But ultimately the goal is not to preach to the converted. It’s going to be to get it outside of Alberta and in the areas of Canada where there’s a lot more disagreement over the issues.” Watch A Stranded Nation for free on YouTube.

JULY 19, 2019

PIPELINE NEWS NORTH •

Oil industry outperforming agri-food on energy efficiency While Canada’s oil and gas industry is generally the focus of attention for reducing industrial GHGs, a new study finds the sector is actually outperforming agri-food in terms of the efficiency of its end products. The study, by the University of Calgary’s Canadian Energy Systems Analysis Research (CESAR) initiative, compared the energy and carbon flows of Canada’s agriculture-to-food system versus the country’s crude-oil-to-refined products system, using data from 2010 to 2013. It found that Canadian agriculture each year pulls out of the atmosphere about twice the amount of carbon that is put into the atmosphere from the combustion of all of the country’s refined petroleum products, according to lead researcher Adekunbi Adetona. Over the study period, Canada’s agricultural crops pulled 141 Mt of elemental carbon, or 517 Mt of CO2, out of the atmosphere each year and used it to build plant biomass. CESAR says that’s equivalent to about 71 per cent of Canada’s total reported GHG emissions for 2013

(729 Mt CO2e per year), and almost the same amount of carbon (144 Mt of carbon per year) in all of the crude oil extracted by the Canadian petroleum industry, much of which is exported. But in the agri-food industry, only about 14 per cent of the carbon removed from the atmosphere in a given year ends up in valueadded end products including food, biofuels, industrial products, and carbon stored in soils, the study found. The remaining 86 per cent quickly returns to the atmosphere. In comparison, it said products from crude oil refining and production account for 91 per cent of the crude oil recovered in Canada, with only nine per cent lost in the conversion process. “While the production of refined petroleum products is different than the production of food products, the agri-food sector could take some lessons from the oil sector when it comes to conversion efficiency,” Adetona said in a statement. The study found the picture is similar when comparing energy return on energy invested between the two sectors’ systems.

In the agri-food industry, for every unit of exogenous energy (electricity, diesel and natural gas) put into the system, only about 0.8 units of energy ends up in the

Need that Go-To Place for Fleet Work? No Wait Times! In and Out Quickly!

• Automotive painting • Frame straightening • Fender reconstruction • Fibreglass repairs

• Over height vehicles • Boats • Recreational vehicles • and much more

250-782-8853

Across from PeterBilt 38 Vic Turner Airport Rd, Dawson Creek, BC

www.bfcollision.com

products, the study said, adding that in comparison the same ratio for Canada’s crude oil-to-refined petroleum products system is 4.2:1. — JWN Energy

â&#x20AC;¢ PIPELINE NEWS NORTH JULY 19, 2019

e 8 c i 1 o 20 ple's Ch o

T S S E T B O PAR T E U R A O T S Pe

QUALITY PARTS... EXPERT SERVICE!

JULY 19, 2019

PIPELINE NEWS NORTH •

energy prosperity starts with pressuring Canadian refiners

veryone in Northeast B.C., Alberta, and Saskatchewan is supportive of having pipelines to the coast for oil and for LNG exports. All Canadians would benefit. Quebec says they oppose an oilsands pipeline, but how soon they forget Lac Megantic. And while they are dumping raw sewage into the St. Lawrence River, I suppose they don’t care if oil from such democratic bastions as Saudi Arabia, Nigeria, and Venezuela comes to the refineries in New Brunswick and Montreal. Why aren’t the eco-activists screaming from the rooftops? I’ll tell you what I think – they go after the low hanging fruit — brought to them by a B.C. government propped up by the Green Party, and that BANANA

attitude on the Gulf Islands, Vancouver Island, and Greater Vancouver of “build absolutely nothing anywhere near anyone”. The eco-activists have a bunch of sheep acting like Chamberlain in Munich in 1938 – appeasement and fear of being branded as evil. They won’t or can’t make the connection between resource development and their own well-being. Canada would soon become a second-tier economy if the Green Party and their toadies got their way and eliminate fossil fuels. So, how should we deal with this when clearly the B.C. government and Liberals in Ottawa have no idea and no plan? I have an idea, and it takes a page right from the activist’s playbook. Over the last 20 years,

sTEVE tHorlAKSoN major corporations have been forced to change their policies by activist shareholders. Oil companies left the corrupt Sudan, miners stopped the trade in blood diamonds and human rights violations in Central America, and more. It’s a long list, and

those campaigns have been mostly successful. And those campaigns continue to this day. I suggest we start with a focused group of people who already invest in the East Coast refiners in Montreal and New Brunswick: Irving Oil in New Brunswick, Suncor and Valero (Texas owned) in Montreal, and four larger refineries in Ontario operated by Imperial Oil, Shell and Suncor. These are five companies to target by shareholders demanding they only use oil from Canada and the U.S. — let us not alienate our largest trading partner. Let us not sit back and wait until after October and the federal election, hoping Andrew Scheer and the Tories can make their energy corridor vision a

reality. Don’t get me wrong, I support Scheer and his vision – it can be the 21st Century version of the CPR construction, the Trans Canada Highway, the coast-to-coast microwave communication network. But, let’s not leave it to the government alone. Let’s empower grassroots democracy to make sure it happens. I’m willing to be part of the network – are you? I have lots of friends in Alberta and B.C. that will join in. If you want to be a part of Grassroots Energy Prosperity, drop me an email at sthorlakson@ gmail.com. Let’s make this happen! Steve Thorlakson is a resident and former mayor of Fort St. John.

NOTICE OF CERTIFICATION AND SETTLEMENT APPROVAL HEARING

Did you experience gender or sexual orientation-based harassment or discrimination while working with the RCMP? On July 5, 2019 the Federal Court (Canada) certified a class action concerning allegations of gender and sexual orientation-based harassment and discrimination of women working or volunteering with the Royal Canadian Mounted Police (“RCMP”). The settlement provides for six levels of compensation ranging from $10,000 to $220,000. Who is Eligible for the Proposed Settlement? Women who experienced gender or sexual orientation-based harassment or discrimination while working or volunteering with the RCMP during the Class Period (September 16, 1974 to July 5, 2019).* *“Primary Class Members” means current and former living Municipal Employees, Regional District Employees, employees of non-profit organizations, volunteers, Commissionaires, Supernumerary Special Constables, consultants, contractors, public service employees, students, members of integrated policing units and persons from outside agencies and police forces who are female or publicly identify as female and who were supervised or managed by the RCMP or who worked in an RCMP controlled workplace during the Class Period, excluding individuals who are primary class members in Merlo and Davidson v. Her Majesty the Queen, Federal Court Action Number T-1685-16 and class members in Ross, Roy, and Satalic v. Her Majesty the Queen, Federal Court Action Number T-370-17 or Association des membres de la police montée du Québec inc., Gaétan Delisle, Dupuis, Paul, Lachance, Marc v. HMTQ, Quebec Superior Court Number 500-06-000820-163.

The Approval Hearing and Your Rights A motion to approve the settlement is scheduled to be heard on October 17, 2019 at 9:30 am at the Federal Court, Vancouver, BC at 701 West Georgia Street. You may object to the proposed settlement on or before October 1, 2019. You may opt-out of the proposed settlement on or before September 13, 2019. For detailed information on how you can participate in the hearing, object to the settlement or opt out of the settlement, visit rcmpsettlement. ca or contact Class Counsel at the below email addresses. More Information? For complete details on the proposed settlement, the fees being sought by counsel, opting out and objecting to the settlement, visit rcmpsettlement. ca or contact Class Counsel: Klein Lawyers LLP www.callkleinlawyers.com wsantos@callkleinlawyers.com Higgerty Law www.higgertylaw.ca info@higgertylaw.ca

• PIPELINE NEWS NORTH

JULY 19, 2019

WEAVER THE AUCTION ADVANTAGE

Real Estate & Equipment Auction Thursday, September 26, 2019 — Rycroft, AB Sale & Live Internet Bidding begin at 9am Two Rings Selling — Real Estate sells at 12pm Directions: Sale site is 3 km west of Rycroft, Alberta on HWY 49.

Lorne: (250) 219-0871

Evan: (250) 219-4539

weaverauctions.com

SEPT.

2014 PETERBILT 388 T/A TRUCK

2014 KENWORTH T800 T/A TRUCK

2015 KENWORTH W900 TRI-DRIVE SLEEPER HEAVY HAUL TRUCK

2001 KENWORTH C500 T/A TRI-DRIVE W/MANITEX M3812 4S BOOM TRUCK

2013 KENWORTH T800 T/A TRUCK

2013 KENWORTH T800 T/A TRUCK TRACTOR

2008 PETERBILT 388 T/A TRUCK

2005 KW T800 TRI-DRIVE TANK & 2005 LAZER INOX 22,000L TRIDEM PUP

2007 ASPEN LB45-3 TRIDEM TROMBONE SCISSORNECK LOWBOY

2015 POLAR SUPER B-TRAIN 62,990L TANK

2011 KENWWORTH T800 T/A TRUCK

2012 ADVANCE 37,500L TRIDEM TANK

2006 KW C500B TRI-DRIVE TEXAS BED

2012 KENWORTH C500 TRI-DRIVE WINCH TRUCK

2007 KW C500 T/A BED WINCH

2006 PETERBILT 378 TRIDEM COMBO

2006 FREIGHTLINER T/A TANK TRUCK

2007 IHC WORKSTAR 7400 S/A PRESSURE

1998 ASPEN FG40-3 TRIDEM SCISSORNECK

2012 LOADKING SUPER B-TRAIN GRAIN

2013 LOADKING SUPER B-TRAIN GRAIN

2000 GERRY'S 16 WHEEL JEEP

2002 ASPEN FG45-3 TRIDEM SCISSORNECK

2003 CATERPILLAR D5G LGP CRAWLER

1996 CAT IT28F WHEEL LOADER

1990 CASE 621ZF WHEEL LOADER

2014 DRAGON TRIDEM TANK TRAILER

2009 JD 9620T TRACK TRACTOR

2001 JD 9400 4WD TRACTOR

2006 JD 1830 60 FT. AIR DRILL